CI Financial Income Fund released its audited financial results for the fiscal year ended May 31 on Thursday and its fee-earning assets were $73.6 billion, up 8% from $68.1 billion a year earlier.

Fee-earning assets were comprised of $46.6 billion in CI mutual and segregated funds, $9.2 billion in United funds, $1.1 billion in structured products, $1.4 billion in administered/other assets such as labour-sponsored funds, and $15.3 billion in Assante Corp. and IQON Financial Inc. assets under administration (net of United funds). The increase in fee-earning assets is attributable to growth in the market value of CI’s funds and strong net sales.

Net sales of CI and United funds for the fiscal year were $3,153.2 million, up 92% from $1,640.7 million in the prior year. CI has been the top-selling independent fund company over the past three years. Strong performance across CI’s product lineup contributed to the increase in net sales. At the end of the fiscal year, CI Investments led the industry with 48 funds with Morningstar Canada’s top five-star rating — more than three times as many as the second-place firm.

Reflecting the growth in assets, CI’s revenue increased 11% to $1,323.4 million in fiscal 2006. Net income was $309 million, up 9% from $284.7 million in fiscal 2005. On a per share basis, earnings increased 11% to $1.08 per share from $0.97 in the prior year.

The results for the year included stock-based compensation expense that reduced earnings by $84.1 million ($53.7 million after-tax) compared to $4.8 million ($3.1 million after-tax) in the prior year.

For the three-month period ending May 31, CI’s revenues was $344 million, an increase of 11% from $310.5 million in the fourth quarter of fiscal 2005. Net income decreased 14%, to $69.3 million from $80.8 million. Earnings per share were $0.24 for the quarter down 14% from the prior year. However, stock-based compensation expense for the quarter was $29.2 million ($18.6 million after-tax) vs a recovery of $3.8 million ($2.4 million after-tax) in the fourth quarter last year.

Earnings per share before this expense were $0.31 for the fourth quarter this year, up from $0.27 per share in the same period last year.

In other matters, a distribution of $0.1675 per trust unit of CI and exchangeable limited partnership unit of Canadian International LP was declared payable on each of Aug. 15, Sept. 15, Oct. 13 and Nov. 15, 2006, to unitholders of record on July 31, Aug. 31, Sept. 30 and Oct. 31, respectively. This represents a yield of 6.76% on CI’s closing unit price of $29.75 on July 12.

The Toronto Stock Exchange accepted on Thursday CI’s notice of intention to continue with a normal course issuer bid through the facilities of The Toronto Stock Exchange. CI’s bid is a continuation of the issuer bid announced and commenced in May 2006 by CI Financial Inc.

Under the bid, CI may purchase for cancellation up to almost 13. 7 million of its trust units, representing the balance remaining under the issuer bid commenced by CI Financial Inc. The purchases may commence today and will terminate no later than May 28, 2007.

As of July 12, there are about 137.6 milliod issued and outstanding trust units of CI and almost 146.8 exchangeable limited partnership units of Canadian International LP.