(August 16 -12:40 ET) – The Investment Funds Institute of Canada reports that sales revived in July, but the industry continues its slow growth rate.

“Net new sales of $1.2 billion almost doubled last month’s figure of $621 million,” stated Tom Hockin, president and CEO of IFIC. “This is very positive as investing during the summer season is usually not a priority with Canadians.”

Monthly net sales, including reinvested distributions, came in at $1.5 billion, in line with last July’s $1.4 billion, but sharply down from 1997’s $4.2 billion, and even below the levels of 1992 and 1993.

Foreign equity funds continue to garner the lion’s share of the net sales, as investors take advantage of increased foreign content limits and continue to pour money into the popular RRSP-eligible clone funds. In July, $940 million in net sales went into the foreign equity funds. U.S. equity funds were the second most popular category at $238 million.

The Canadian equity category continues to lag the foreign equities, but it looks much more robust than a year ago. This July the category saw $102 million in net sales, compared with last July’s $613 million in net redemptions. Balanced funds picked up just $99 million in net sales, while the fixed income categories languished with minimal sales.

IFIC also reported the total number of member unitholder accounts at 49 million, a 10.2% increase over one year ago. Total assets under management decreased in July to $419.3 billion, down 0.3% from $420.8 billion in June.

Investors remains the top fund family, followed by Royal Mutual Funds. Fidelity has moved into the number three spot passing Mackenzie. Assets though are slipping among the top companies, including Templeton and Trimark. Gains are evident at AIC, MD Management, Elliott & Page and Synergy.
-IE Staff