C.I. Fund Management Inc. is reporting weaker results for the first quarter ended August 31, as the fund manager continued to feel the effects of a prolonged market slump.

C.I.’s fee-earning assets declined by 7.5% during the quarter to $24.8 billion at August 31, 2001.

C.I.’s net sales for the quarter totalled $197 million, compared with net sales of $1.19 billion in the first quarter of fiscal 2001. The company says the reduction in net sales resulted primarily from a decrease in gross sales, given that redemptions increased by only $32 million for the first quarter of fiscal 2002 compared with the first quarter of fiscal 2001.

Total revenues for the first quarter were $131.7 million, down 13% from the prior year. Management fees were $100.5 million, compared with $121.1 million in the prior year, reflecting the change in mutual fund assets as well as non-mutual fund assets such as labour- sponsored funds.

Administration fees and other income, which represent income from C.I.’s third-party business and institutional assets, were up 6.3% as C.I. benefited from the growth in institutional business through its money management subsidiaries.

Selling, general and administrative expenses for the quarter ended August 31, 2001, were $19.9 million, a decline of 19% or $4.6 million from $24.5 million in fiscal 2001.

Investment advisor fees rose from $9.1 million in fiscal 2001 to $10.5 million in fiscal 2002. Trailer fees declined from $30.1 million in fiscal 2001 to $25.5 million. Distribution fees to limited partnerships declined 38% to $3million.

Income before amortization of goodwill was $10.3 million for the quarter ended August 31, down from $16.1 million in the prior year. Earnings before interest, taxes, depreciation and amortization (EBITDA) was $68.9 million or 38¢ per share, compared with $76.2 million or 42¢ per share in the prior year.

The Board of Directors today declared a quarterly cash dividend of 1¢ per common share payable on December 15.