Investors bought an estimated $850-million in mutual funds last month, a sharp decline from the $1.9-billion in net sales reported in July last year.
Net sales for the industry are expected to be in the range of $600-million to $1.1-billion, the Investment Funds Institute of Canada reported yesterday. That's up from $308-million in net sales reported in June.
Joanne De Laurentiis, IFIC's president and chief executive officer, noted that total industry assets rose to almost $600-billion in July.
Nevertheless, net sales are down significantly when compared with 2005. For the first seven months of 2006, net sales total about $12.2-billion, down 17 per cent from $14.8-billion reported during the same period a year ago.
Six firms reported net redemptions in July, led by AIM Funds Management Inc. The Toronto fund company lost $65-million in fund business last month.
RBC Asset Management Inc., the mutual fund arm of the Royal Bank of Canada, was the month's big winner, reporting $339-million in net sales.
© 2007 The Globe and Mail. All rights reserved.
Only GlobeinvestorGOLD combines the strength of powerful investing tools with the insight of The Globe and Mail.
Discover a wealth of investment information and and exclusive features.