CI Financial Income Fund today reported a modest increase in profit for the third quarter ended September 30.
Net income for the quarter was $143.7 million, up 4% from $138.4 million for the year ago period. On a per unit basis, earnings for the three-month period increased 2% to 50¢ a unit from 49¢ a unit in the prior year.
Net sales totalled $149 million during the quarter and gross sales totalled $2.5 billion, up 32% from $1.9 billion in gross sales in the same quarter last year, positioning CI for another robust year of fund sales.
In addition, CI reported net sales of $179 million for October 2007, an increase of $135 million, or 307%, from $44 million in October 2006.
Fee-earning assets at September 30, 2007 were $96.3 billion, up 27% from $76.1 billion a year earlier.
CI says the increase in fee-earning assets stems from 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 $55.1 billion in CI mutual and segregated funds (including Lakeview), $9.7 billion in United Financial Corporation funds, $727 million in structured products, $3.2 billion in institutional managed assets, $1.7 billion in administered/other assets such as labour-sponsored funds, and $25.9 billion in net dealer assets under administration (including Assante Wealth Management and Blackmont).
In other matters, a monthly distribution of 19¢ per trust unit of CI and exchangeable limited partner unit of Canadian International LP was declared payable on December 14. CI says this distribution reflects the growth in assets under management and current expectations for distributable cash.
The distribution represents a yield of 8.3% on CI’s closing unit price of $27.40 on November 5.