C.I. Fund Management reported a weaker than expected first-quarter profit on Wednesday, but saw revenues rise from a year earlier.

C.I reported net income of $17.5 million or 9¢ a share, in the quarter ended August 31, compared with a loss of $14.3 million million, or 8¢ per share, in the corresponding period last year.

Revenues in the quarter rose to $130.4 million from $116.2 million.

The company said increase resulted primarily from the additional revenues produced by the mutual fund and segregated fund assets acquired from Spectrum Investment Management Ltd. the mutual fund
subsidiary of Sun Life Assurance Company of Canada, and Clarica Diversico Ltd., the mutual fund subsidiary of Clarica Life Insurance Company. These assets were consolidated into CI’s results from July 25, 2002, to the end of the quarter.

The most significant component of revenues for the quarter was management fees, which increased by 9% from $100.5 million in the first quarter of fiscal 2002 to $109.7 million in fiscal 2003. This increase also stemmed from C.I.’s higher asset levels.

Administrative fees and other income rose 29% from $5.8 million to $7.5 million due to increased revenues from institutional assets at C.I.’s U.S. subsidiaries and from third-party processing.

Redemption fees for the quarter totalled $13.2 million, compared with $9.5 million in fiscal 2002, reflecting higher redemption rates and redemption fees from the newly acquired Spectrum/Diversico assets.