CI Financial reports second quarter results; year-to-date net sales of $1.6 billion



    TSX Symbol: CIX.UN

    TORONTO, Aug. 14 /CNW/ - CI Financial Income Fund ("CI") today released
unaudited financial results for the quarter and six months ended June 30,
2008.

    
    -------------------------------------------------------------------------
                               Quarter ended        Quarter ended
                               June 30, 2008        June 30, 2007
                            (millions except     (millions except       %
    HIGHLIGHTS              per unit amounts)    per unit amounts)    change
    -------------------------------------------------------------------------
    Average Retail Assets
     Under Management                $65,839              $66,384         -1
    -------------------------------------------------------------------------
    Gross Sales                       $3,050               $2,867          6
    -------------------------------------------------------------------------
    Net Sales                           $873                 $569         53
    -------------------------------------------------------------------------
    Earnings Per Unit                  $0.48                $0.54        -11
    -------------------------------------------------------------------------
    Adjusted Earnings
     Per Unit(1)                       $0.49                $0.54         -9
    -------------------------------------------------------------------------
    EBITDA Per Unit(2)                 $0.62                $0.69        -10
    -------------------------------------------------------------------------
    Adjusted EBITDA Per
     Unit(1),(2)                       $0.62                $0.70        -11
    -------------------------------------------------------------------------
    (1) Adjusted for equity-based compensation
    (2) EBITDA (earnings before interest, taxes, depreciation and
        amortization) is not a standardized earnings measure prescribed by
        GAAP; however, management believes that most of its unitholders,
        creditors, other stakeholders and investment analysts prefer to
        include the use of this performance measure in analyzing CI's
        results. EBITDA is a measure of operating performance, a facilitator
        for valuation and a proxy for cash flow.
    

    Fee-earning assets at June 30, 2008 were $102.2 billion, down 5% from
$108.0 billion a year earlier. This decrease is mostly attributable to
declining markets and was partially offset by positive net sales of funds.
Fee-earning assets were comprised of $64.6 billion in investment funds and
pools at CI Investments Inc. and United Financial Corporation, $552 million in
structured products, $2.7 billion in institutional managed assets,
$32.9 billion in dealer assets under administration (at Assante Wealth
Management and Blackmont Capital Inc.), and $1.4 billion in other fee-earning
assets.
    For the quarter ended June 30, 2008, gross sales and redemptions totalled
$3.1 billion and $2.2 billion, respectively, compared with $2.9 billion and
$2.3 billion, respectively, in the same quarter a year earlier. Net sales for
the quarter were $873 million, an increase of $304 million, or 53% from
$569 million in the second quarter of 2007. CI products that made important
contributions to the increase in sales included the Cambridge Funds, which
were launched in January 2008, and the SunWise Elite Plus segregated funds. In
addition, CI reported net sales of $196 million in July 2008, bringing
year-to-date net sales to $1.6 billion.
    Net income (adjusted for equity-based compensation) for the quarter ended
June 30, 2008 was $135.8 million, down 11% from the three-month period ended
June 30, 2007. On a per unit basis, adjusted earnings for the quarter were
$0.49, down from $0.54 per unit for the three months ended June 30, 2007.
    EBITDA (earnings before interest, taxes, depreciation and amortization;
adjusted for equity-based compensation) for the quarter ended June 30, 2008
was $173.6 million, down from $196.0 million during the same quarter in 2007.
On a per unit basis, adjusted EBITDA decreased 11% to $0.62 for the second
quarter of 2008 from $0.70 per unit for the quarter ended June 30, 2007.
    The year-over-year decrease in earnings is mainly attributable to the
decline in administration fee revenue in the capital markets and asset
administration operations of Blackmont, and a decrease in assets under
administration at Assante Wealth Management.
    "Blackmont had an extraordinary second quarter in 2007," said Stephen A.
MacPhail, CI President. "Market conditions prevented another record quarter in
2008; however, Blackmont continued to make important contributions to our
business despite the industry-wide slowdown in investment banking activity."
    For example, fee-based and mutual fund accounts at Blackmont were up
$182.5 million, or 6%, for the year-to-date at June 30, 2008.
    Operating margins in the asset management segment, which includes CI
Investments, United Financial, and KBSH, were relatively flat during the
quarter. Year-over-year margins were affected by the mix between equity,
income, and money market funds, as well as the trend towards a higher
proportion of CI's assets being Class F and Class I funds.
    For detailed financial statements for the quarter and six months ended
June 30, 2008, including Management's Discussion and Analysis, please refer to
CI's website at www.ci.com/cix under Reports, or contact
investorrelations@ci.com.
    In other matters, a monthly distribution of $0.17 per trust unit of CI
and exchangeable limited partner unit of Canadian International LP was
declared payable on September 15, October 15 and November 14, 2008. These
distributions reflect CI's current expectations for distributable cash and
represent a yield of 9.6% on CI's closing unit price of $21.33 on August 13,
2008.
    As of July 31, 2008, there were 134,081,658 issued and outstanding trust
units of CI and 146,446,746 exchangeable limited partner units of Canadian
International LP, for a total outstanding amount of 280,528,404.

    CI Financial Income Fund (TSX: CIX.UN) is an independent, Canadian-owned
wealth management company. CI offers a broad range of investment products and
services, including an industry-leading selection of investment funds. CI is
on the Web at www.ci.com/cix.

    Analysts' Conference Call

    Chief Executive Officer William T. Holland will host a conference call
and webcast with analysts today at 5 p.m. Eastern time to discuss the results.
Please note that the time and the phone numbers for this call have been
changed from those published previously.
    To listen to the call, please dial (416) 644-3420 or 1-800-814-4941. The
webcast, which includes a slide presentation, will be available at
www.ci.com/q2. The call will be available for playback starting at 7:30 p.m.
Eastern time until August 28, 2008 at (416) 640-1917 or 1-877-289-8525
(passcode: 21279428, followed by the number sign). The webcast will be
archived at www.ci.com/q2.

    This press release contains forward-looking statements with respect to CI
and its products and services, including its business operations and strategy
and financial performance and condition. Although management believes that the
expectations reflected in such forward-looking statements are reasonable, such
statements involve risks and uncertainties. Actual results may differ
materially from those expressed or implied by such forward-looking statements.
Factors that could cause actual results to differ materially from expectations
include, among other things, general economic and market factors, including
interest rates, business competition, changes in government regulations or in
tax laws, and other factors discussed in materials filed with applicable
securities regulatory authorities from time to time.





For further information:

For further information: Stephen A. MacPhail, President, (416) 364-1145


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