(October 4 – 18:15 ET) – Merrill Lynch is says that fund industry sales slowed in September. Sales information compiled by the Investment Funds Institute of Canada won’t be released until October 15.
Merrill’s informal survey of fund companies estimates that September industry net sales slipped to between $980 million and $1 billion range, down from $1.3 billion in August, but almost quadruple the amount in September 1999. Based on the $1 billion estimate the firm says that industry net sales are running 8.5% higher than in the first nine months of 1999. It estimates that industry assets slipped 4% to $420 billion in the month though, thanks to wonky equity markets.
Merrill says the independent firms are dominating net sales and sales concentration remains high, with a handful of companies garnering all the sales. Merrill predicts that C.I. Fund Management Inc. will come out as the top seller, although it suggests that, “AGF continues to represent the best mix of solid organic growth at a reasonable price, in our view.”
The top five sellers in the month will be C.I. followed closely by Fidelity, with AGF further back in third, CIBC and Synergy round out the top five. AIM would have made the top five but continued Trimark redemptions should leave it in net redemptions for the month. Merrill says “Market volatility looks to have impacted net sales acceleration, as most of the major companies in our survey showed declines relative to August results.”
By asset class, Canadian equity funds struggled through choppy markets, yet the firm sees them possibly leading RRSP season sales this year. Foreign equities remain strong.
-IE Staff