Mutual fund sales were probably substantially negative in September, according to preliminary estimates from the Investment Funds Institute of Canada (IFIC). The industry group estimates sales could have ranged anywhere from $400 million in net redemptions, to $100 million in net sales.
The good news is that long term funds enjoyed net sales of over $1 billion, while money market fund redemptions more than counterbalanced the inflows.
Industry assets under management grew, thanks to equity strong markets. IFIC estimates total assets of between $626.9 billion and $631.9 billion, up about 2.9% from last August’s total of $611.5 billion.
“Mutual fund assets grew by $37.6 billion or 6.35% in the third quarter, highlighting the positive growth in equity markets we have seen since the end of August,” said Pat Dunwoody, IFIC vice-president of member services and communications. “We continue to see strong investor demand on the long-term fund side of the business, with year-to-date long-term fund sales at $17 billion or $7.2 billion higher than at this point last year.”
DundeeWealth reported mutual fund net sales of $277 million, with $288 million in new money flowing into long term funds and $11 million in net redemptions from money market funds. Total assets under management ended September at $42.6 billion.
“As of the close of September, 2010 has been one of our strongest years ever in terms of net sales,” said David Goodman, president and CEO of DundeeWealth. “Net sales are up 71% year-to-date over the same period last year, while AUM is up 27% since September 30 of 2009. At the same time, our longer-term growth momentum is evident in a 5-year AUM compound annual growth rate of 18% as of September 30, 2010.”
CI Financial reported net retail sales of $32 million for the month, on gross sales of $780 million. Sales consisted of $29 million in net sales of long-term funds and $3 million of net sales of money market funds. Total retail assets under management at month end were $65.6 billion.
“The tone in financial markets improved considerably in September,” said Stephen A. MacPhail, CI president and CEO. “Should recent trends continue, the outlook for the remainder of the year is quite favourable.”
AGF Management reported total net redemptions of $161.7 million, consisting of $146.7 million from long-term funds, and $15 million from money market funds. Total assets under management at the end of the month were $44.3 billion.
Investors Group reported $86.9 million in net redemptions, with $68.6 million coming from long-term funds and $18.3 million from money market funds. Mutual fund assets under management were $58.8-billion at the end of the month.
Mackenzie Financial announced net redemptions of $213.8 million, which consisted of $232.2 million in long term fund redemptions, with $18.4 million in net money market fund sales. Total AUM at September 30, 2010 were $64.5 billion.
Counsel Portfolio Services announced $8.7 million in net new money, including $7.4 million in net long term fund sales. Mutual fund assets under management were $2.38 billion at September 30, 2010.
(10/05/10)