(July 12 – 17:00 ET) – C.I. Fund Management Inc. reported better than expected results after the close today.

C.I. reported its results for fiscal 2000, ending May 31, generating cash flow per share of $2.76, more than double the $1.28 it earned in fiscal 1999. Analysts were expecting something closer to $2.40 per share.

For the year C.I. almost tripled its assets under management to $26.3 billion, from $9.7 billion at May 31, 1999. The firm attributed the huge jump to both last fall’s buyout of BPI Financial
Corp., market appreciation, and record net sales. Net sales were up 324% year over year. Earnings came in at 66¢ per share, up from 12¢ last year, due to improved margins, increased assets, performance fees, securities gains and revenues from its money management subsidiaries. Operating profit margin improved to 1.17% of assets under management, compared to 1.02%.

The firm is sustaining last year’s momentum into fiscal 2001. In June 2000, the firm reports net sales of $398 million, up 232% from June 1999. Analysts expect cash flow of $3.50 per share in 2001.

C.I. says it is also optimistic about its prospects for continued growth in cash flow and profitability in fiscal 2001. The firm declared a quarterly dividend of $0.0125 per common share payable September 15, to shareholders on record on September 1.
-IE Staff