Saxon Financial Inc. today reported record financial results for the second quarter ended June 30.

The investment management firm continued its strong performance, with 18% growth in revenue and a 22% increase in earnings over the second quarter of 2006.

Saxon’s second quarter net income rose to $4.6 million, from $3.8 million in the year earlier period.

Management fee revenue in the second quarter was $14.2 million, an 18% increase over $12.1 million recorded in the second quarter of 2006.

All three Saxon business segments — retail mutual funds, institutional and private client — registered double-digit fee revenue increases.

Saxon’s assets under management grew 13%, or $1.5 billion, in the 12-month period ended June 30, climbing to a record $13.1 billion.

“Saxon’s results mark the success of our strategy in leveraging a 21 year investment performance record,” said Allan Smith, president and CEO, in a news release. “Our dividend increase, the third in our short history as a public company, demonstrates our continuing commitment to enhancing shareholder value.”

Saxon Mutual Funds continued to record strong sales in its principal- protected notes, with second quarter note sales outpacing those during RRSP season.

Saxon Financial’s institutional investment management subsidiary, Howson Tattersall Investment Counsel Ltd., enhanced its reputation as an international investment manager with the addition of three new clients in foreign equity mandates.

Saxon increased its quarterly dividend by 2¢ to 23¢ per common share, the third dividend increase since becoming a public company two years ago. The annualized dividend has increased 28% over the past year from 72¢ to 92¢ a share.