CI Financial Corp (CIX.TO: Quote) said on Tuesday that higher asset levels led to a 9.8 percent gain in its quarterly earnings, just a tad off expectations, but that recent market weakness was pressuring assets under management.

Canada's No. 3 investment fund company said it earned C$98.3 million, or 34 Canadian cents a share, in the second quarter, up from C$89.5 million, or 31 Canadian cents a share, a year earlier.

The earnings per share were a penny shy of the average expectation of analysts, according to Thomson Reuters I/B/E/S.

Total revenues were up 14.7 percent at C$385.5 million, slightly below the C$387 million expected by analysts.

Gross sales of funds were C$2.52 billion, flat from a year earlier, while net sales of funds came in at C$309 million, versus $310 million a year ago.

CI said its total assets, which include mutual, segregated, and hedge funds, separately managed accounts, structured products, pooled assets, and assets under administration, were up 17 percent from a year earlier at C$97.16 billion.

Assets under management (AUM) rose 19 percent to C$74.28 billion at the end of the quarter, due to gains made by financial markets over the last year and a rise in sales of CI's investment products.

The recent market weakness has taken a toll on CI's AUM, with assets down 1.8 percent at C$72.9 billion at the end of July from the end of June, the company said.

"In this environment, we continue to emphasize CI's funds' exceptional track record and CI's broad spectrum of products in order to attract new sales and retain assets," Chief Executive Stephen MacPhail and Chairman Bill Holland said in a release.

Shares of CI were down 1.58 percent at C$19.88 on the Toronto Stock Exchange on Tuesday around midday.