CI Financial Corp. said Tuesday that its earnings rose in the second quarter from the first three months of the year, as improving markets spurred fund sales.

The independent fund manager said adjusted earnings were 20¢ a share in the second quarter ended June 30. That’s up 18% from 17¢ a share in the first three months of 2009.

This was the second quarter in which the fund manager reported as a corporation, after converting from an income trust on Jan. 1.

While CI was still an income trust in the second quarter of 2008, it earned a profit of with $134.7 million, or 48¢ a share.

The 2009 Q2 adjusted earnings did not include income tax expenses of $24.8 million ($22.5 million), compared with $16.3 million in the prior quarter, when a one-time $8 million income tax recovery was recorded.

When those items are included, CI had earnings per share of 17¢, down from 20¢ in the first quarter.

CI said fee-earning assets rose 12% in the quarter to $87.4 billion as markets improved.

Gross sales rose 9% to $2.3 billion, while net sales were up 272% to $663 million from the previous quarter’s $178 million.

Net ales in the year-earlier period were $873.2 million.

IE