C.I. Fund Management Inc., hit by net redemptions for the first time in more than 12 years, reported a net loss of $14.8 million in the fourth-quarter ended May 31.

C.I. said the net loss, equal to 9¢ a share, compared with a net profit of $4.4 million (2¢) in the same period last year.

Revenues in the quarter slipped 8% to $131.1 from $141.8 million. Net sales were $56.3 million for the quarter, a substantial drop from $446.8 million the year before.

The company had net redemptions in May and June for the first time in more than 12 years as overall equity markets fell sharply.

“The decline in sales reflected continued poor equity markets, especially for growth-oriented stocks. This, in turn, affected a number of C.I. funds that had been top sellers in recent years,” the Toronto-based company said in a news release.

For the year, C.I. posted a net loss of $61.4 million (35¢) vs a profit of $11.5 million (6¢) in the previous 12 months. It said the loss was largely due to the amortization of $98.3 million in goodwill and $201.6 million in deferred sales commissions.

Net sales of C.I. funds for the year were $481 million vs $3.468 billion for 2001. C.I. said the decline reflected continued poor equity markets.

In May, C.I. entered into an agreement to acquire Spectrum Investment Management Ltd., the mutual fund subsidiary of Sun Life Assurance Co. of Canada, and Clarica Diversico Ltd., the mutual fund subsidiary of Clarica Life Insurance Co. The transaction is expected to close on July 24.

C.I. expects the deal to have a significant increase in the overall revenues and profitability of the company due to the addition of $12.5 billion in assets under management and the achievement of significant synergies in the merger of the three companies’ operations.