December net mutual fund sales higher

TORONTO — Net mutual fund sales totalled $1.29 billion in December, up from $588 million a year earlier, as the redemption of short-term funds dropped sharply, according to the Investment Funds Institute of Canada.

TORONTO — Net mutual fund sales totalled $1.29 billion in December, up from $588 million a year earlier, as the redemption of short-term funds dropped sharply, according to the Investment Funds Institute of Canada.

Assets under management by IFIC members totalled $635.7 billion at the end of last month, up from $619.7 billion in November and $566.2 billion in December 2009.

“Money market net redemptions have continued to hover near the $1 billion mark since May, and net redemptions totalled $17.2 billion for the year,” the industry group said.

Short-term fund redemptions totalled $1.02 billion for the month compared with $1.47 billion in November and $2.24 billion in December 2009.

Meanwhile, balanced funds led the way for the industry as they racked up $2.41 billion in net sales, down from $3.01 billion in November, but up from $1.86 billion a year ago.

Bond fund sales fell to $694 million compared with $1.07 billion in November and $1.4 billion in December 2009. Equity fund net redemptions were $795 million compared with $319 million in November and $406 million a year ago.

Specialty fund net redemptions totalled $2.4 million compared with $11.6 million in sales in November and $17.9 million in redemptions in December 2009.

Net mutual fund sales for all of 2010 totalled $11.97 billion, up from $5.07 billion in 2009.