There were net redemptions of $428 million in October for RBC Funds Inc. mutual funds. Net sales for the 12 months ending October 31, 2002 were $674 million.

“Sales and redemption numbers being reported for the industry are not taking a close enough look at the split between money market and long-term assets,” says Brenda Vince, president and chief operating officer, RBC Funds Inc. “Since January, we have seen net redemptions of close to $1 billion in money market funds and net sales of nearly $600 million in long-term funds.”

Vince says short term money will always be looking for the best rates in the consumer’s mind whether they are in GICs, savings accounts or money market funds. “Long-term investors have by and large stayed the course and we hope they come back to the market with more confidence over the next few months.”

“We have also seen steady growth in our F-class offerings, despite the volatile equity markets,” says Vince. Advisors use F-Series funds for clients who prefer fee-based accounts. “We recently lowered F-series fees to allow advisors to be fully compensated for their advice without affecting costs to their clients.”