If I look at just the pipeline of firms that we are having conversations with it's really increasing on an ongoing basis. We anticipate that the rebranding effort will be fully completed by Q1 2021. And on day one everything is -- everything that you do is what we do. Spend in the asset management segment declined $1.1 million from last quarter even as average AUM increased 5% and is down $16.1 million from one year ago as we continue to streamline asset management operations. Just looking at your leverage just over two times in your current free cash flow run rate, how are you feeling about sustaining this level of RIA acquisitions? When you think about M&A and wealth management versus asset management, it's really a different approach. In his role as a Partner, he managed global consulting teams working with some of the largest asset and wealth managers in the world on topics related to strategy, distribution, marketing, international expansion, mergers and acquisitions, and product development. Or at some point, if you're going to keep this run rate going of acquisitions do you need to start using equity a bit? The impact is a $58 million increase in our run rate wealth management EBITDA, which translates to $73 million annualized or 387% improvement from 2019. By providing your email address below, you are providing consent to CI Financial to send you the requested Investor Email Alert updates. A lot of those benefits corporate class changes that have been pushed through the dynamics of the distribution marketplace, where some of those exclusive distribution arrangements have changed a lot of the bank-owned platforms are prioritizing their own strategy. Finally Cabana Group, one of our U.S. RIAs launched $1 billion lineup of target drawdown strategy ETFs in September. I'm incredibly pleased by the progress we've made in growing our wealth management business in such a short period of time, but I'm even more encouraged by how well our differentiated story is resonating in the U.S. marketplace positioning us well for continued future growth. He holds a PhD in theoretical physics from Pierre and Marie Curie University (now Sorbonne University), and an M.Sc. I know it sounds like a minor distinction, but that is very different from us, doing an acquisition and saying, we're going to buy your business. REGISTRAR & TRANSFER AGENT. He also previously worked at PwC LLP, where he performed audit and business advisory services for multinational and mid-sized broker dealers. SG&A declined nearly $16 million, or 13% from a year ago, and was flat on a sequential basis despite on-boarding several new businesses. In May, we shared with you the details of our rebranding initiative, which is aimed at more effectively communicating to the marketplace the breadth and depth of CI's capabilities and highlighting the firm as an integrated global asset and wealth management company. And by us, focusing on, essentially just fitting a framework or fitting that firm to a framework, we're losing a lot of the individuality or the specialty that they bring to us. Prior to joining WisdomTree in July 2015, Mr. MacAlpine was a Partner at McKinsey, a global management consulting firm, based in its New York office. The $2.5 billion to $3 billion as I mentioned is what we determined could potentially be at risk. Prior to that, he held a variety of roles in the financial technology industry at companies such as DST Systems (now IFDS). Addresses View Full Report. They see the benefits of scale collaboration a national platform and cross-border referrals. U.S. assets under management are reported separately as the revenues earned on those assets are part of an overall fee paid by clients for wealth management and are reported in the wealth segment. CI's gross debt finished the quarter at $1.96 billion and a reported debt-to-EBITDA ratio of 2.4 times as EBITDA rebounded 10% in the third quarter to $204.6 million from $186.6 million last quarter. We made considerable progress across our rebranding efforts with the rollout of our new website in October. So we needed to evolve our investor platform. All lines are in a listen-only mode. Thank you. Please complete the form below and click on subscribe for daily newsletters from Wealth Professional. And the part that I'm most excited about is, we're doing deals with truly exceptional very high-quality firms. Yes. The revenue earned on these assets is recorded in the asset management segment. How can we help you? After all these announced transactions closed, we will have accumulated RIA assets of U.S. $16.5 billion or CAD 22 billion this year alone. He joined CI in 2016 from First Asset Investment Management, where he served as Senior Vice-President, Legal and Operations. Not so much. Two increasingly important categories where we are growing our market share. This slide provides a snapshot of our new investment management organizations. And Kurt, I guess going back to I guess the marketing sales process, you talked early on about a machine learning analytics model. We are making these changes while protecting the elements of our investment platform that make us unique. We have a very high concentration of Canadian equity and Canadian balanced funds that have been higher redeemed categories in the industry and the concentration of advisers that are holding them tend to be those, as I mentioned, that are older MFDA advisers that might not be in growth mode on their businesses. We had another strong quarter as markets and our AUM continued to rebound. Thank you for the question. And there could be opportunities for us to acquire specialized capabilities alternatives, as an example or something like that. I was isolating and looking at the business as it stands today and the percentage and dollar of assets that we have tied to sub-advisory mandates linked to bank and insurance on platforms that have their own capabilities internally. Good morning, Geoff. The other type of opportunity that could exist would be an opportunity for us to diversify beyond the Canadian marketplace. Yes. So it is a lever that, we could use, but we'll do it in a very disciplined manner when they do. So, the three transactions, plus Bowling which we announced earlier in the quarter, so it would be the combination of those four plus Aligned. There will be over time, but that wasn't really the focus of the effort. We are confident that meaningful synergy opportunities exist, but we prefer not to give guidance. This includes $125.4 billion of assets under management and $77 billion of wealth management assets. Before I discuss our sales for the quarter to-date, I want to provide you with a brief update on our assets for the month of October. I don't like to give guidance on anything as I think oftentimes it's just guessing. They have a phenomenal focus on serving corporate executives in the oil and gas industry, which creates a very interesting energy corridor opportunity for us partnering with Assante. Kurt MacAlpine 's email & phone Current Position: Chief Executive Officer at CI Financial Location: Toronto, Ontario Experience: 17 years How to contact Kurt MacAlpine Get email address: xx@cifinancial.com Phone number: +1-xxx-xxx-5429 Last updated: 2021-04-29 Social media: Sign Up to Get Free Contacts Use a Browser So I think the main difference between us and our competitors and we thought a lot about this in advance of entering the RIA space which was we recognized that others have been in this space earlier. As the President and Chief Operating Officer of CI, the total compensation of Darie Urbanky at CI is CAD$1,225,000. We believe these changes will improve the client experience, not only through the potential for improved performance, but by simplifying our offering, while strengthening our value proposition. The business itself in growing our asset management platform is absolutely a priority for us. Like what sort of, hit rate do you think you would be able to get looking out over the next year? So where we come in is we come in -- in the middle. By accepting this notice and continuing to browse our website you confirm you accept our Terms of Use & Privacy Policy. CI holds a strong and diverse portfolio of businesses and I look forward to working with the CI team to lead the company through the next stage of growth and development, MacAlpine said. So the approach would be different. Thank you. I would say our approach to capital allocation overall has been very dynamic. You can sign up for additional alert options at any time. Our daily newsletter is FREE and keeps you up-to-date with the world of wealth. Trading is expected to begin next Tuesday the 17th, under the symbol CIXX. Prior to that, he held a variety of roles in the financial technology industry at companies such as DST Systems (now IFDS). After submitting your request, you will receive an activation email to the requested email address. Is that something that is -- well how does that prioritize for you? For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. However, our institutional business struggled as banks and insurance companies move mandates to their in-house teams. Can you do this without issuing equity? He has been with CI Global Asset Management for over 20 years, serving in progressively more senior roles in Information Technology. WebCI Financials Strategic Priorities Update from CEO Kurt MacAlpine November 2019. [Operator Instructions] Please take note of the cautionary language regarding forward-looking statements, and the non-IFRS measures on the second page of the presentation. So that really seems to be where our institutional business has experienced the vast majority of our redemptions over the past year. He has extensive experience in the global asset and wealth management industry, having previously served as Executive Vice-President and Head of Global Distribution for WisdomTree Asset Management and as a Partner and Leader of the North American Asset Management Practice at McKinsey & Company. That business has been relatively flat for us over the past little while and we have the new head of institutional now that's working to grow it. Thank you, Kurt. In addition to inorganic growth, the companies we've acquired are also experiencing strong organic growth. When you think about asset management acquisitions, there's probably two types of acquisitions that would potentially make sense for CI. Welcome to Barrons Advisor! We don't break out the specific numbers. Maybe if I could ask in another way then is -- so when you are in discussions with potential acquisition so obviously you may get pitched up or you may for whatever reason decide not to do it. 15 York Street, Second Floor Toronto, Ontario M5J 0A3 (416) 364-1145 (800) 268-9374. Thank you for the question. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. So that's kind of one extreme end of the spectrum. Mr. Muni is a graduate of Pace University in New York and is a Certified Public Accountant. Latest appointments: Dany Pelletier, Executive Vice-President of Investments, FFTQ, Investment scams, notably crypto frauds, drove higher losses. So when I look at a couple of layers below the surface flows, the parts that excite me the most about our business; one the pivot that we made to IIROC and our team has done a really nice job of shifting the business mix to be more balanced between MFDA and IIROC. As for its expansion, it appears CI has no plans to slow down. Congratulations! Our content is free but available only to wealth management professionals. And it really depends upon the quality of platforms that are coming to market, and then how fast or slow those processes ultimately move. In the third quarter U.S. AUM grew 10% to $4.7 billion on net sales of $300 million and market performance. Prior to joining CI GAM in September 2021, Mr. Lewis was Head of Portfolio Construction at the Abu Dhabi Investment Authority (ADIA), one of the worlds largest sovereign wealth funds. WebWhat is the salary of Darie Urbanky? 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And we're only $16.5 billion so far. In just two years, Toronto-based CI Financial has assembled, via acquisition, a $115 billion-asset independent RIA empire in the U.S. As we think about globalizing what I would say is, I'm not sure if we'll do something to globalize. It is more dynamically priced. Note there is $3.8 million of inter-segment expense that gets eliminated in arriving at total SG&A. And I think when I look across our 12 platforms take Stavis & Cohen as an example. Thanks. https://www.barrons.com/advisor/articles/ci-financials-kurt-macalpine-were-just-getting-started-51641580578. Thank you. Thank you all for the time today. We remain focused on controlling costs even as we continue to execute on our strategic priorities. To the extent that, we can use our stock accretively to do these types of transactions, it is something we would consider using as part of the purchase price which would reduce our free cash flow obligations. In just two years, Toronto-based CI Financial has assembled, via acquisition, a $115 billion-asset independent RIA empire in the U. Maybe you can just share with us, what the margins would be on that business. Related to: Kurt Macalpine. Why? Sure. But as we naturally work through it, if there's opportunities to deliver a better client experience through consolidation, it's something we will look at as we would look at all opportunities across our businesses. I would say if you think about the journey we've been on the first few deals that we had started with or prioritized were firms that I had professional relationships with in prior lives. So, we do pass a lot. If you experience any issues with this process, please contact us for further assistance. So what I was trying to do in responding to the question was provide the visibility into the breakdown of the institutional and assigning the assets to that particular segment or sub-segment. I think there's probably a little bit more there than that plus everything that we've shared, and we'll continue to share will be pre-synergies just given my preference not to provide go-forward guidance or projections. Next, I will update you on our corporate rebranding initiative. Prior to joining Claymore, Mr. Kelterborn was a lawyer with law firms in Toronto and Bermuda and served as Associate General CounselCorporate at Nortel Networks. And then on top of that if you look at the marketplace, I'd say somewhere around $0.90 on the dollar ex-CI of money in the space right now is private equity or private equity related. So we are fortunate enough to be winning the vast majority of auctions that we are in. This new approach allows us to deliver CI's full-scale to our clients, organize ourselves by investment capability, share information more freely throughout the organization, ideally leading to better problem-solving and investment outcomes, reduce complexity in our investment organization, creating a more client-friendly platform, create consistency in our objectives address gaps in our platform holistically and align the compensation model across teams. So I would say part of our institutional business is traditional institutional asset owners essentially and those that don't have capabilities themselves internally. Is there an opportunity to continue to streamline your fund lineup? So does that include the acquisitions that are announced, but not closed such as the Roosevelt or the Doyle acquisitions that were announced earlier this week last week? If you experience any issues with this process, please contact us for further assistance. Mr. Lewis has over 20 years of global investing experience and has held senior leadership positions at several organizations, including two of the worlds largest institutional investors. Under the current model, the Harbour business is part of broader CI Global Asset management benefits from that scale, partnership, access to better resources and things like that. But it is something that we're monitoring. This number only includes our current interest in these companies and does not include any growth or market assumptions. So as we work through and announce and finalize these acquisitions, the goal is to provide our investors with a roadmap essentially for how our business is evolving. 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