According to the Investment Funds Institute of Canada’s latest data, mutual fund redemptions likely continued in August.
IFIC reports that, based on a sample of preliminary data from its members, August saw sales estimated to be between $250 million in net redemptions, and $50 million in net new sales. “Net new sales for August are expected to rebound by approximately $1 billion from last month,” said Tom Hockin, IFIC’s president and CEO, in a news release. “The improvement in sales for August is certainly a positive sign.”
It appears that net redemptions continued in long-term funds during August, a trend that first emerged in July. Until then, redemptions had been concentrated in money market funds, and bank-owned fund companies.
That trend appears to have continued at a lower intensity in August. TD Asset Management and AGF Management experience heavy net redemptions of $180 million and $160 million respectively. Notable net redemption activity is also evident at Fidelity Investments Canada, Investors Group, Altamira and CI Mutual Funds.
Against this, a few firms continue to generate positive net sales. AIM Funds Management led the way with $138 million in positive August net sales. CIBC Securities added $103 million in net sales. And, there were also notable positive net sales at BMO, Scotia, Elliott & Page, Guardian and PH&N.
IFIC also estimates that net assets of the industry at the end of August will be in the range of $396 to $401 billion, down approximately 0.3% from last month’s total of $400.5 billion.