(January 10 – 13:30 ET) – C.I. Fund Management Inc. today released unaudited financial results for the six months ended Nov. 30, 2000.

The fund management company posted net sales of $1.06 billion for the three months and $2.24 billion for the six months ended November 30, representing increases of 30% and 86%, respectively, from the prior year.

Mutual fund assets totalled $23.5 billion at November 30, up 42% from the prior year and up 4% since the end of fiscal 2000. Total fee-earning assets at the end of the period were $28.3 billion, up 6% since the beginning of fiscal 2001 and up 46% on a year-over-year basis. C.I. says this reflects the continued growth in institutional assets at its U.S. money management subsidiaries.

C.I.’s share of the Canadian mutual fund market was 5.75% at November 30. This represents increases of 27% from the prior year and 4% in fiscal 2001.

Total revenues for the six months were $309.6 million, up 75% from the prior year. C.I. says the primary contributors to the increase were management fee revenues, which rose 101% to $243.5 million, and administrative fees and other income, which rose 57% to $17.8 million.

Performance fee income declined by $11.5 million as market declines reduced performance fees. Average mutual fund assets were $24.5 billion for the six months, up 96% from $12.5 billion in the prior year.

Selling, general and administrative expenses rose 50% to $48.5 million. Similarly, investment adviser fees rose 68% for the period as the cost to C.I. of investment management also increased at a rate less than asset growth.

Trailer fees rose 109% to $60.4 million, slightly outpacing asset growth as a greater number of funds were purchased on a front-end load basis.

Operating margin (management fees less net selling, general and administrative expenses, investment advisory fees and trailer fees, as a percentage of mutual fund assets) was 1.22% for the six months ended November 30, up from 1.13% in the prior year.

Income before amortization of goodwill was $38.4 million or 21¢ a share for the six months, up 73% from the prior year. C.I. says the large increase reflected increased margins coupled with substantial growth in assets.

Operating cash flow was $156.9 million or 86¢ ashare for the six months, up 75% from the prior year. The major use of cash flow was the $117.7 million paid in sales commissions. In addition, C.I purchased $62.4 million in marketable securities, primarily shares of Mackenzie Financial Corp.
-IE Staff