September mutual fund sales are estimated to be between $850 million to $1.3 billion, although almost all of it came in money market funds, according to preliminary data from the Investment Funds Institute of Canada.
IFIC reported the estimate based on a sample of preliminary data from some of its members. Although it also revealed that about 85% to 95% of the new mutual fund sales came in money market funds, according to Joanne De Laurentiis, IFIC’s president & CEO.
The core long-term fund sales were minimal. According to a sample of data from IFIC members, RBC Asset Management led the way once again with $203 million in long-term net sales. TD Asset Management was the only other firm with as much as $100 million in monthly net sales, it had $152 million worth.
Several companies reported net redemptions for the month in their long-term funds, including AIM Trimark, Franklin Templeton Investments, and IGM Financial. All of whom had more than $100 million in long-term redemptions.
RBC and TD also led overall net sales, with $472 million and $451 million in total sales, respectively. They were also the only firms with more than $100 million in overall net sales.
Despite the weak net sales, IFIC also estimates that net assets of the industry at the end of September will be in the range of $607 billion to $612 billion, up approximately 0.2% from last month’s total of $608.1 billion.
Money market funds net lion’s share of September sales: IFIC
Investors avoid investments in long-term funds
- By: James Langton
- October 4, 2006 October 4, 2006
- 07:25