Long-term mutual fund sales were scarce in September, according to the latest data from the Investment Funds Institute of Canada.

IFIC reported net sales for the month totalled $1.1 billion, excluding re-invested distributions of $999 million. Net sales for all funds, including re-invested distributions, stood at $2.1 billion. However, most of the sales came in money market funds, as long-term funds only managed $159 million in net sales.

Balanced funds led the way with $482 million in net sales, but this was wiped out by $501 million in net redemptions from Canadian equity funds.

Positive net sales in dividend and bond funds were similarly offset by redemptions from U.S. equity funds. Among equity categories, only foreign equity funds recorded positive net sales, and then, they had a modest $24.6 million.

“As predicted, investors bought heavily into money market funds in September,” said Joanne De Laurentiis, IFIC’s president & CEO. “The last time monthly money market sales were this high was in December 2001.”

Despite the weak sales, total assets under management increased in September to $610 billion, up 0.3% from $608.1 billion in August. Assets are up 10.1% from last September’s $554.2 billion.

Notably stronger than average asset gains were evident at TD Asset Management, AIM Trimark, PH&N and Brandes. A number of firms saw assets decline in the month however, including, Dynamic, Manulife, IA Clarington, Guardian and Acuity.