The Investment Funds Institute of Canada reported that December net sales, excluding re-invested distributions of $1.6 billion, totaled minus $238 million.
Net sales for all funds including re-invested distributions were $1.3 billion. “Net redemptions have steadily decreased since October 2002 with redemptions decreasing by 59% from the previous month,” said Tom Hockin, IFIC’s president and CEO, in a news release. “In spite of a difficult year with a number of months of net redemptions, we should not forget that net sales did not decrease in 2002. Year-to-date sales netted out at a positive $3.4 billion.”
In December, investors continued to opt for safety, putting $296 million into bond and income funds. Another $65.7 million went into dividend and income funds, and $32.6 million flowed into balanced funds.
Pure equity funds continue to suffer redemptions. The foreign equity category was hardest hit, with net redemptions of $274.8 million in the month. Canadian equity funds also dropped $119.4 million of redemptions in December. U.S. equity funds saw $41.8 million head out of the category.
Total assets under management decreased in December to $391.3 billion, down 1.5% from $397.5 billion in November. Assets are down 8.2% from last December’s figure of $426.4 billion.
Assets held up rather well at the bank-owned firms, as they suffered only modest asset decreases. And, there was some asset growth evident at firms such as PH&N, Guardian, Manulife, Standard Life, Mawer and National Bank. The weakest firms included TD, Franklin Templeton, AIC and DynamicNova.
Net sales of money market funds in December were minus $215 million and minus $115 million including re-invested distributions.