RRSP season mutual fund sales came in just under $4 billion, according to the latest data from the Investment Funds Institute of Canada.
IFIC reports that net sales for February totaled $3.1 billion, up from $693.5 million in January, and up notably from the $1.7 billion that was recorded in February 2009. Combined net sales for the first two months of the year – the core RRSP season months – were $3.8 billion, compared with $2.85 billion at the same point last year.
Long-term fund sales totaled $5.1 billion in February, IFIC observes, up from $3.1 billion in January, and just $258.9 million for the same month last year. Long-term fund sales were $8.22 billion for the first two months of 2010 compared to $64.4 million at this point last year.
Balanced funds were the top-selling asset class in February, capturing $3.7 billion of the $5.1 billion in long-term fund sales, pushing the category’s year-to-date total to $6.0 billion. Fixed income funds ranked second with $1.3 billion in February sales, up from $806.5 million in January and $870.4 million in February 2009. And, equity fund sales were positive for the second month in row, albeit just $104.5 million worth in February. IFIC says that strong sales in the Canadian dividend and income equity categories were the primary driver for equity fund sales in the month.
Once again, money market funds were in net redemptions for the month, totaling just under $2 billion, down from $2.44 billion in January.
Fidelity Investments Canada ULC was the top-selling company in February, with $552 million in overall net sales. It was followed by Dynamic Funds and TD Asset Management. RBC was the leading long-term seller, with just over $900 million in monthly net sales, followed by TD and Fidelity.
“While we were expecting an improvement over last year, we were surprised by just how strong fund sales were this RRSP season,” said Pat Dunwoody, vice president of member services and communications with IFIC. “Long-term fund sales for the first two months of 2010 were better than they have been in nine out of the last 10 years, and were 72% of long-term fund sales in 2007 – the high water mark for the decade,” she said.
IFIC also reported that total assets were $597 billion in February, up slightly from $595.2 billion at the start of the year, but up by an impressive $120.1 billion, or 25.2%, from February 2009.
IE