Mutual funds had net redemptions of between $1 billion and $1.5 billion in May, according to preliminary data from the Investment Funds Institute of Canada.

The negative sales performance, which came amid a period of heightened market volatility, saw a majority of the top 20 firms in net redemptions during the month.

Manulife Investments led the way with $201 million in overall net sales, followed by a tie for second place between Fidelity Investments Canada ULC and Dynamic Mutual Funds, both with $150 million in sales. Among the big five banks, only Scotia Asset Management recorded postive net sales for the month.

Manulife also led the long-term sales, with $197 million. RBC ranked second with $159 million, and Fidelity was the only other company to break the $100 million mark, with $120 million in long-term sales.

IFIC also estimates that net assets of the mutual fund industry for the month of May will be between $596.8 billion and $601.8 billion, down approximately 3.4% from last month’s total of $620.4 billion.

“Market volatility during the month of May led to a decline in industry assets that was not unexpected. Despite this dip, year-over-year asset growth was a very healthy 11.4%,” said Pat Dunwoody, vice president of member services and communications at IFIC.

“Long-term net sales year-to-date at just over $13 billion remained well above their values at this point in 2009 or 2008 and were essentially identical to result in 2006,” she added.

IE