Saxon Financial Inc. today reported a 46% drop in second quarter profit on one-time charge related to the departure of its chief executive officer.

Net income or the quarter ended June 30 was $2.5 million f, or 18¢ share. That’s compared with $4.6 million, or 34¢ a share in the year-ago period.

Saxon said its net income was adversely impacted by a $2.2 million non-recurring item related to the departure of former president and CEO Allan Smith in May due to personal reasons.

Exclusive of this charge, EBITDA increased 23% from the previous quarter and earnings per share would have been approximately 30¢ for the quarter.

Assets under management (AUM) increased by 1.1% in the second quarter to $13.4 billion. A significant improvement in mutual fund flows and continued positive flows in the institutional client segment contributed to the second quarter growth in AUM.

The company earned management fees of $12.8 million, up from $12.3 million in the prior quarter, while assets under management increased by 1.1% to $13.4 billion.

Saxon said Tuesday it was being acquired by IGM Financial, which owns Investors Group and Mackenzie Financial.

IGM plans to merge Saxon into Mackenzie.