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Mutual Fund News

New cash flows to money markets

FUNDS REPORTER

Canadians investors plowed about $730-million into mutual funds in August, but continued to stash the new cash in money market investments.

The net inflows contrast with the same month a year ago when the industry suffered from $1.5-billion in net redemptions, according to preliminary figures released yesterday by the Investment Funds Institute of Canada.

In August of last year, the cash leaving the industry stemmed from a major flight from money market funds because of concerns about holding troubled asset-backed commercial paper.

"This August was a pretty good month considering the amount of volatility we saw," and the fact that investing is not on the top of people's minds, said Dennis Yanchus, IFIC's manager of statistics.

The S&P/TSX index only nudged up 1.3 per cent, while the S&P 500 rose 1.2 per cent.

RBC Investment Management was the leader with $432-million in net sales. Fidelity Investments Canada ULC brought in $300-million; Dynamic Mutual Funds Ltd., $252-million and CI Financial Income Fund, $115-million.

Fund companies hit with net outflows included Invesco Trimark Ltd., which lost $422-million; AGF Management Inc., $103.4-million, and IGM Financial Inc., which owns Investors Group and Mackenzie Financial, $78-million.

© 2007 The Globe and Mail. All rights reserved.

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