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

The company continued its strong performance with 33% growth in revenue and 27% increase in net income over adjusted results for the second quarter of 2005.

Net income for the quarter was $3.8 million, up from $2.2 million for the second quarter of 2005.

For better comparison purposes, Q2 2005 net income has been adjusted to add back a $0.8 million expense. With this adjustment, Q2 net income was up 27% over Q2 2005.

Second quarter revenue was $12 million, up from $9.2 million in the second quarter of 2005.

Saxon’s assets under management grew 17% over the same period in 2005, reaching $11.7 billion.

“At a time of rough waters for the financial markets, it was smooth sailing at Saxon,” said Allan Smith, president and CEO, in a news release. “Saxon Mutual Funds extended their long record of positive net inflows and our institutional business attracted healthy client deposits. This helped Saxon set new records in revenue, earnings and assets under management.”

During Q2 year-over-year net sales increases of Saxon long-term funds of 18% were significantly better than the industry which recorded a net sales decline of 36%.

Saxon also increased its quarterly dividend to 18¢ per common share.

Saxon has three principal lines of business: Saxon Funds Management Ltd.; Howson Tattersall Investment Counsel Ltd.; and Howson Tattersall Private Asset Management Inc.