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Mutual Fund News

Funds estimate net sales up from August, down from year ago

Canadian mutual fund companies pulled in between $850-million and $1.3-billion in net new sales last month, according to preliminary estimates from the Investment Funds Institute of Canada.

Those estimates suggest that September was a better month for the industry than August, when net new sales totalled $744-million, excluding reinvested dividends. But the latest monthly total doesn't measure up to September, 2005, when the companies took in $1.8-billion.

Money market funds, rather than so-called long-term funds, were the investment vehicle of choice. "About 85 to 95 per cent of the new mutual fund sales came in money market funds," said Joanne De Laurentiis, IFIC's chief executive officer. "Some money market managers are offering very attractive yields." The projected totals are based on a sample of preliminary data from some IFIC members.

While the industry as a whole seems to have been in positive territory last month, some companies saw more redemptions than sales.

AIM Trimark Investments had redemptions of $220-million in September, worst showing among the 25 companies surveyed. Franklin Templeton Investments Corp. was next, with $146-million in net redemptions. RBC Asset Management Inc. was the leader on the plus side, with $472-million in net new sales, followed by TD Asset Management Inc., at $451-million. The companies are based in Toronto.

© 2007 The Globe and Mail. All rights reserved.

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