CI Financial Income Fund said its profit fell by 11% in the second quarter due to a drop in administration fee revenue and assets under administration.

The Toronto-based wealth management firm reported a net profit of $135.8 million, or 49¢ per unit in the quarter ended June 30. That compares with 54¢ per unit for the year-ago period.

Average assets under administration were $65.8 billion versus $66.4 billion for the same quarter last year.

“The year-over-year decrease in earnings is mainly attributable to the decline in administration fee revenue in the capital markets and asset administration operations of Blackmont, and a decrease in assets under administration at Assante Wealth Management,” the company stated Thursday.

Net sales for the quarter were $873 million, an increase of $304 million, or 53% from $569 million in the second quarter of 2007.

“Market conditions prevented another record quarter in 2008,” CI president Stephen MacPhail said in a release.

“However, Blackmont continued to make important contributions to our business despite the industry-wide slowdown in investment banking activity.”