It looks like the mutual fund industry was hit with another month of net redemptions in September, according to preliminary estimates.

The Investment Funds Institute of Canada reported today that mutual funds likely suffered $350 million in net redemptions in September — with net sales estimated to be between minus $550 million to minus $150 million, based on a sample from some of its members.

In a release, Tom Hockin, IFIC president and CEO, attributed the redemption activity primarily to the volatile money market funds. But, the industry also suffered a smudge on its reputation in September when the Ontario Securities Commission reported that it had uncovered some market timing activity at four big fund firms, although it has yet to lead to enforcement action. Hockin also noted that September are typically slower than August.

Notwithstanding IFIC’s explanation, the heaviest redemptions were reported at two of the big independent firms, Fidelity ($270 million) and AIC ($221 million). Typically, the action in money market funds is focused in bank-owned fund companies.

AIC was one of four firms that revealed that the OSC has uncovered market timing trading in its funds. Two of the others, CI ($72 million in net sales) and Investors Group ($15 million in net redemptions), fared much better. AGF, the fourth firm, did not have its sales reported by IFIC.

There were also redemptions at all of the bank-owned firms — likely highlighting the action in the money-market funds — led by TD, with $95 million in redemptions.

The only firms recording more than $100 million in net sales were Brandes and PH&N.

IFIC also estimates that net assets of the industry at the end of September will be in the range of $466 to $471 billion, up approximately 0.1% from last month’s total of $468.1 billion.