CI Financial reports second quarter earnings rise to $89M from $52.9M
CI Financial Corp., Canada’s third-largest investment funds company, reports its second-quarter profits rose to $89 million from $52.9 million as the company generated higher revenues and cut operating costs.
Average assets under management increased to $63.5 billion from $53.7 billion last year, but retail assets were down from the first quarter, the Toronto wealth manager said.
Per-share earnings for the quarter ended June 30 increased to 31 cents from 18 cents.
The company said its gross and net sales of funds for the quarter were $2.5 billion and $310 million, respectively.
Meanwhile, overall revenues increased to $338 million from $291.9 million a year ago.
CI also said it improved its operational efficiency in the quarter, leading to improved bottom line growth. Sales, general and administration costs fell 22 per cent to $56.2 million from $71.6 million.
The company, which has a 10 per cent share of the investment funds market, also reduced its interest costs to $4.2 million from $6.4 million.
“Following four consecutive quarters of positive performance, the second quarter of 2010 saw financial markets decline, resulting in a modest decline in CI’s assets,” CEO Bill Holland and president Stephen MacPhail said in a letter to shareholders accompanying the financial report.
“Net sales for July were $194 million and retail assets under management for the month were up 3.8 per cent from the second quarter’s ending assets. This reflected a strong recovery in markets from the latter part of the second quarter as concern over European debt levels eased and economic conditions in Canada continued to improve.”
CI Financial markets, sells and administers mutual funds, segregated funds, asset allocation programs, structured products, and other alternative investments on which the company earns fees.
Those financial products are sold through brokers, independent financial planners, and insurance advisers, including those affiliated with the company’s own Assante Wealth Management and Blackmont divisions.
