January looks like another weak month for mutual fund sales, according to new numbers from the Investment Funds Institute of Canada.
IFIC reported today that, based on a sample of preliminary data from some of its members, net new sales for the month of January are estimated to be between minus $900 million to minus $600 million.
“Net redemptions for January are expected to be about $760 million,” stated Tom Hockin, IFIC’s president and CEO. “Economic, political and market uncertainty continues to leave investors on the sidelines.”
The redemptions appear to be relatively widespread, with the independents taking it hardest. AGF was hit with $239 million in net redemptions. Fidelity is second with $175 million in net redemptions, followed by Franklin Templeton at $128 million. Sizeable redemptions are also evident at RBC, Mackenzie, AIC, Dynamic, National Bank and Altamira.
Some firms are enjoying positive sales however, including $182 million in net sales for CIBC. Brandes is the only other firm with at least $100 million in net sales. TD, Manulife, Guardian and PH&N also had positive net sales.
IFIC also estimates that net assets of the industry at the end of January will be in the range of $379 to $384 billion, down approximately 2.5% from last month’s total of $391.3 billion.
Another month of net redemptions
IFIC releases estimate of January fund sales
- By: James Langton
- February 4, 2003 February 4, 2003
- 17:20