The mutual fund industry pulled in another $800 million in net sales in May, according to preliminary estimates from the Investment Funds Institute of Canada.

IFIC reported that, based on a sample of preliminary data from some of its members, net new sales for May are estimated to be between $600 million to $1 billion.

“Net sales for the month of May are expected to be approximately $800 million, the highest for a May since 2001,” said Tom Hockin, IFIC’s president & CEO, in a news release. “Net sales for the first five months of 2004 are expected to be about $13.1 billion.”

The banks continue to lead the way, with BMO Funds recording $323 million in net sales, followed by RBC Asset Management with $236 million, and National Bank at $133 million.

It was not a universally good month for all of the banks, with CIBC suffering a small net redemption, and TD Asset Management recording just $93 million in net sales.

Brandes Investment Partners was the only other firm to top the $100 million mark, at $131 million in net sales. Most of the other independents had small net sales, but the redemptions continued at AIC, Fidelity and Altamira.

AIM Trimark also saw $23 million in net redemptions, in a month which saw the resignation of star manager Bill Kanko.

Long-suffering AGF’s numbers were not reported in IFIC’s data. Other firms recording redemptions include Dynamic, Manulife, Guardian and Sentry Select. Some of these firms have enjoyed strong sales in recent months, but it may be that the popular income trust sector which powered their sales is coming under pressure as interest rates rise.

IFIC also estimates that net assets of the industry at the end of May will be in the range of $471 to $476 billion, up approximately 0.6% from last month’s total of $470.7 billion.