Trying times for the mutual fund industry. Already in the post-RRSP season doldrums, fund sales were beaten down by market volatility in May.

Net redemptions of mutual funds for the month of May are estimated to be between $1.0 billion and $1.5 billion, according to preliminary sales data released by IFIC. Net industry assets at month end are estimated to have been between $596.8 billion and $601.8 billion, down about 3.4% from April’s total of $620.4 billion.

“Market volatility during the month of May led to a decline in industry assets that was not unexpected. Despite this dip, year-over-year asset growth was a very healthy 11.4%,” said Pat Dunwoody, vice-president of member services and communications with IFIC. “Long-term net sales year-to-date at just over $13 billion remained well above their values at this point in 2009 or 2008 and were essentially identical to result in 2006.”

RBC Asset Management and Phillips, Hager & North announced net redemptions of $699 million. Long-term funds had net sales of $158 million and money market funds had net redemptions of $857 million. Assets under management decreased by $2.9 billion or 2.9%.

“Although industry sales slowed in May, we continued to see inflows into our long-term mutual funds and remained among the leaders in long-term net sales,” said Doug Coulter, president of RBC AM.

AGF Management reported net redemptions of long-term mutual funds were $192.1 million for the month. AGF’ total fee-earning assets under management (AUM) were $42.9 billion as at May 31, 2010, a healthy increase of 14.6% from May 31, 2009.

IGM Financial’s total assets under management stood at $118.5 billion at month-end. Mutual fund AUM for the same time was $98.6 billion.

DundeeWealth reported total revenue earning fiduciary assets at May 31, 2010 of $70.8 billion, including $38.1 billion in mutual fund assets under management.

Counsel Portfolio Services, a division of Investment Planning Counsel, reported its mutual fund AUM at the end of the month was $2.20 billion.

CI Financial reported net sales of $265 million with $260 million coming from long-term funds and $5 million from money market funds. Assets under management consisted of retail investment funds of $62.6 billion.

Mackenzie Financial Corporation posted $188.4 million in net redemptions, a result of $390.2 million in gross sales being outstripped by $578.6 million in redemptions. Assets under management at month-end was $62.4 billion.

(03/06/10)