Insight May 2007 Monthly Update

The May issue of Insight updates the exclusive regional breakdown of investment fund assets that we last featured in June 2005. Investor Economics is the only organization that gathers and maintains regional data on assets under management, sales and redemptions for the Canadian market. Our database goes back to 1996 and covers more than 90% of the mutual funds market and more than 95% of total segregated fund assets. In addition, the analysis includes fresh input from our recently revamped provincial Household Balance Sheet research, which will be featured in the upcoming 2007 edition of our Household Balance Sheet Report. Regional differences in importance of fund investing are highlighted through updated “share of wallet” measures that show each region’s level of investment fund ownership as a percentage of its wealth market, and average fund assets per household. Despite the healthy growth and strong sales momentum of the past several years, a highly competitive environment and rising margin pressures have compelled most manufacturers to keep a close watch on the bottom line. With unlimited marketing budgets a thing of the past, it is increasingly important to understand where and how to allocate your marketing dollars. Where can you now get the best bang for your sales and marketing buck? As our analysis shows, the provinces vary widely in the degree to which they are fund-friendly. To what extent do you go with the “flows” and concentrate on established markets, and to what extent do you exercise more missionary zeal in developing new opportunities?