Mutual funds likely saw modest net redemptions once again in October, according to preliminary data from the Investment Funds Institute of Canada released today.
IFIC reported that, based on a sample of preliminary data, net new sales for October are estimated to be between negative $250 million and positive $150 million. “Net redemptions for the month of October are expected to be approximately $50 million. The majority of these redemptions continue to be from money market funds,” said Tom Hockin, IFIC’s president & CEO.
Notwithstanding reports of ongoing redemptions from money market funds, the big losers continue to be large independent firms, with AIC seeing $247 million in net redemptions and Fidelity with $215 million.
The heavy money market redemptions tend to come from the bank-owned firms, which dominate this category. CIBC was the only other firm in the survey with more than $100 million in redemptions.
AIM Trimark, Franklin Templeton and Altamira were in redemptions, too. Investors Group had $49 million in redemptions from its IG funds, but was bailed out by solid positive sales in its Mackenzie and Counsel funds.
The only firm to put up $100 million in net sales for the month was Brandes, which continues to lead the sales parade. It was followed closely by BMO, PH&N, Manulife and Mackenzie. CI managed $60 million in net sales, as did RBC. Acuity had another strong month, too.
IFIC also estimates that net assets of the industry at the end of October will be in the range of $470 billion to $475 billion, up approximately 0.5% from last month’s total of $470.5 billion. “Assets in the industry rose for the second straight month due to strength in the equity markets during October,” Hockin added.
Funds indicate modest redemptions in October: IFIC
Money market funds continue to see outflows
- By: James Langton
- November 2, 2004 November 2, 2004
- 17:20