CI Financial Income Fund today reported a 25% increase in fourth quarter net income, due to strong net sales during the quarter.
Net income for the quarter ended Dec. 31, 2007 was $187.7 million, up 25% from $149.9 million for the same quarter a year earlier.
On a per unit basis, earnings for the three-month period increased 25% to 66¢ per unit from 53¢ per unit in the prior year.
Net income for the year was $625.1 million, up 32% from the 12-month period ended Dec. 31, 2006. Earnings per unit for the year increased 33% to $2.21 per unit from $1.66 per unit for the 12 months ended Dec. 31, 2006.
Net sales of investment funds during the fourth quarter totalled $422 million, up 240% from $124 million in the same quarter a year earlier.
Net sales and gross sales of funds for the year ended December 31, 2007 were $2.1 billion and $11.4 billion, respectively.
CI says this represents another strong year of sales, and ranks it as one of the top-selling independent mutual fund companies in 2007.
In addition, CI reported gross sales of over $1 billion in January 2008.
Fee-earning assets at Dec. 31, 2007 were $103.6 billion, up 13% from $91.8 billion a year earlier. CI says the increase in fee-earning assets is due to growth in the market value of CI’s funds and positive net sales, as well as the addition of Lakeview Asset Management Inc., KBSH Capital Management Inc., and Blackmont Capital Inc. through the acquisition of Rockwater Capital Corporation in April 2007.
Fee-earning assets were comprised of $63.6 billion in investment funds and pools at CI Investments Inc. and United Financial Corporation, $531 million in structured products, $3 billion in institutional managed assets, $34.8 billion in dealer assets under administration (at Assante Wealth Management and Blackmont), and $1.7 billion in other fee-earning assets.
In other matters, a monthly distribution of 16¢ per trust unit of CI and exchangeable limited partner unit of Canadian International LP was declared payable on April 15 and May 15, 2008. These distributions reflect CI’s current expectations for distributable cash and represent a yield of 8.5% on CI’s closing unit price of $22.65 on Feb. 19, 2008.
CI also announced that it will hold its annual meeting of unitholders on May 21 in Toronto.