CI Fund Management Inc. is reporting higher profit and a 40% rise in revenues for the second quarter ended Nov. 30, 2002.

The independent fund manager says renewed investor confidence in stock markets in late 2002 fueled mutual fund sales and stemmed the flow of redemptions.

Net profit for the quarter was $21.4 million, or 9¢ a share, compared with a loss of $17.1 million, or 10¢a share, in the prior-year period.

Earnings before interest, tax, depreciation and amortization were $87.6 million, or 37¢ a share.

Revenues rose 40% to $152.5 million from $108.6 million, the company said.

Total fee-earning assets at Nov. 30, 2002, were $34.6 billion, up 40% from $24.8 billion at Nov. 30, 2001. The acquisition of $11.7 billion in fee-earning assets on July 25, 2002, from Spectrum Investment Management Ltd. and Clarica Diversico Ltd. was primarily responsible for the increase.

Average mutual and segregated fund assets for the quarter were $29.1 billion, below the asset levels at both the beginning and the end of the quarter — reflecting the significant market decline and recovery during the quarter.

CI had net redemptions during the quarter of $268 million, up slightly from $242 million in the first quarter of fiscal 2003.