C.I. Fund Management Inc. is reporting a loss for the second quarter ended Nov. 30, 2001.

The fund management company said that net income before amortization of goodwill was $7.5 million, or 4¢ share. That compares with net income of $22.3 million, or 12¢, a year ago.

After the amortization of goodwill, the company posted a loss of $17.1 million, or 10¢ per share on a fully diluted basis. Higher amortization of deferred sales commissions and lower management fee revenues in the current fiscal year, combined with $7.3 million in securities gains in fiscal 2001, were primarily responsible for the change.

The firm’s second-quarter revenues fell to $124.1 million from $158.3 million a year earlier. The change in revenues reflected a change in mutual fund assets — which averaged $20.2 billion for the quarter, a decrease of 18.5% from $24.8 billion in fiscal 2001 — as well as a one-time $7.3 million gain in fiscal 2001 from the sale of shares in E-Trade Group.

Management fees were $92.0 million, compared with $122.4 million in the prior year. Administration fees and other income were $5.2 million, down from $12.3 million in the prior year due to the $7.3 million securities gain in 2001 as described above.

Overall selling, general and administrative expenses for the quarter ended November 30, 2001, were $19.5 million, compared with $23.9 million in fiscal 2001.

Investment adviser fees declined slightly from $10.7 million in fiscal 2001 to $10.2 million in fiscal 2002, reflecting the lower level of assets being managed.

Trailer fees declined from $30.3 million in fiscal 2001 to $23.2 million in fiscal 2002.

Distribution fees to limited partnerships declined 38.6% to $2.6 million.

C.I.’s board also increased its quarterly dividend to 3¢ a share from 1¢ a share.