C.I. Fund Management Inc. is reporting improved earnings despite slower fund sales for the 12 months ended May 31, 2001.

According to the company, improved margins, increased assets, securities gains and revenues from CI’s money management subsidiaries all contributed to a significant increase in earnings. In addition, the provision for future income taxes decreased by $16.2 million.

Total revenues were $615.1 million, an increase of 35% from the $454.5 million reported in the same period in the prior fiscal year. Net income was $11.4 million or 6¢ per share, compared to a net loss of $2.1 million or 1¢ per share a year ago.

Earnings before interest, taxes and amortization were $319.9 million or $1.75 per share for the period, up 35% from $236.9 million or up 27% from $1.38 per share in the same period in fiscal 2000.

Total fee-earning assets at May 31, 2001 were $26.8 billion, an increase of 1% from $26.7 billion at May 31, 2000.

Net sales of C.I.’s funds for the year were $3.5 billion, ranking the company second overall among Canadian mutual fund companies. This compares with net sales of $5.8 billion for the year ended May 31, 2000, when C.I. set industry records.

C.I.’s operating profit margin improved to 1.19% of mutual fund assets under management for the 12-month period ended May 31, 2001, compared with 1.16% for the prior fiscal year. The company credits declining expenses and and increased trailer fees for the improvement.

During fiscal 2001, C.I. financed $199.6 million in deferred sales commissions, compared with $251.6 million in fiscal 2000.

C.I.’s board of directors declared a quarterly dividend of 1¢ per common share.