CI Financial today reported a 7% increase in its fourth-quarter profit, and raised is quarterly dividend by 20%.

CI, which up until recently was called CI Fund Management Inc., said net income for the quarter was $80.8 million, or 28¢a share, up from $75.4 million, or 26¢ a share, in the year-before period.

Revenue rose 7% to $281.1 million, helped by the mid-2004 acquisition of financial planning firm IQON Financial Management Inc.

Total fee-earnings assets were $68.1 billion at the end of May, up 11% from $61.3 billion a year earlier.

Net fund sales for the fiscal year ended May 31 were $1.7 billion, up from $920 million the previous year.

“The sales momentum experienced by CI during the (tax-deferred retirement savings plan) season has continued with net retail sales of $111 million, $131 million, and $150 million for April, May and June, respectively — traditionally very slow months for the industry,” CI said in a release.

Fund performance was helped by stronger stock markets — the S&P/TSX composite index rose 14% in the year ended May 31 — but foreign returns were pinched by the Canadian dollar’s 8.6% rise versus the U.S. dollar.

Recently, there has been speculation that CI may bid for all or part of London-based fund manager Amvescap Plc.

Amvescap has already rebuffed CI’s offer to buy its Canadian AIM/Trimark operations as well as an informal CI bid for the whole company.

Also today, CI said it was raising its monthly dividend to 6¢a share from 5¢ cents a share, citing the strong profit and a positive outlook for available free cash flow.