And I'm just really excited about how well our differentiated value proposition is resonating compared to other stories that are in the marketplace currently. Kurt has worked with some of the largest asset managers in the world and has a thorough understanding of the industry, best practices and new developments, David Miller, director and chairman of CIs governance, human resources and compensation committee, said in a statement. So, we do pass a lot. By accepting this notice and continuing to browse our website you confirm you accept our Terms of Use & Privacy Policy. And what we're trying to do Gary and Scott, just to clarify the reason this is important is, we're obviously transforming our business relatively quickly from all of our economic profits coming from asset management to more balance. in mathematics and physics from Universit de Montral. Please go ahead. I would say our approach to capital allocation overall has been very dynamic. As President and Chief Operating Officer, Mr. Urbanky is responsible for the operational aspects and resources of CI Global Asset Management, CI Assante Wealth Management and other CI Financial companies. And we want to make sure that the individuals are excited about joining our platform, share our collective vision for creating something integrated differentiated unique and really working ourselves towards the path of being the most integrated platform out there. And that kind of leads me to the second question, which is I think on your financial statement you disclosed the purchase price of roughly $400 million for the U.S. RIA acquisition that's closed up to September. I think the biggest opportunity for us is really two-fold. Please go ahead. The ability for any boutique to deliver scale benefits was driven by the scale they had generated independently. And the three transactions you announced in the last 10 days, would that be included in that number? In the past 10 days, we have announced three new transactions: Stavis & Cohen, a U.S. $570 million women-owned Houston based RIA with a focus in financial planning and servicing corporate executives in the oil and gas industry; Doyle Wealth Management a U.S. $1.1 billion RIA based in the Tampa Bay Area a popular destination for Canadian retirees; and Roosevelt Investments a U.S. $2.7 billion RIA based in New York City our first acquisition in the world's largest financial market. But it is a different approach and I want to make sure that's coming through than the methodical approach we're taking to the wealth management space. Bloomberg Markets Americas. Like what sort of, hit rate do you think you would be able to get looking out over the next year? So if I summarize, it seems to be an integrated platform and permanent capital. He holds a PhD in theoretical physics from Pierre and Marie Curie University (now Sorbonne University), and an M.Sc. HEAD OFFICE. On November 12, CEO Kurt MacAlpine discussed with the Globe and Mail CIs recent RIA acquisitions, and their plans to continue their rapid expansion. So you will it is our intent to continue to show these two slides on an ongoing basis and you can really chart the journey that we're on. Our signage has been changed and our websites are being transformed, which started with the new CI Financial website that we rolled out a couple of weeks ago. All of our initiatives will support one or more of these strategic priorities. So take Harbour as an example. Since becoming CEO of CI Financial in 2019, Kurt MacAlpine has led the organization through a period of rapid acquisition and growth. 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. How can we help you? 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. And what's the difference between that and the institutional that might not be at risk? And that was really the next tranche of deals. Harbour in the old model prior to this week had the ability to deliver $3 billion to $4 billion of total scale. Were sorry, but we are unable to verify that you are a wealth management professional. Net income and adjusted net income of $130.6 million is up 9% from $120.2 million last quarter. 100 University Avenue, Eighth Floor. MacAlpine, who hails from Saint John, NB, has a commerce degree from Halifaxs Saint Marys University and an MBA from Queens University. And why would that be? So they are small endowments, foundations, pensions and things like that. We're essentially redesigning our website to really focusing on different areas. Congratulations! Not so much. But what I would say is if I look at the building and the momentum of the pipeline that we've created over the past few months, I think it's truly remarkable. Thank you for the question. Mr. Lewiss previous positions also included Senior Vice-President, Risk Management Fixed Income and Overlay Strategies at CDPQ and Senior Vice-President, Fixed Income at Natcan Investment Management, where he oversaw a team managing $16 billion in Canadian and global fixed-income assets. The program is off to a strong start and acquisitions such as Stavis & Cohen with their focus on the energy business and Doyle with their strategic location in Florida will be great additions to this program. Maybe you can just share with us, what the margins would be on that business. Thank you for the question. He was also a member of the CDPQ asset allocation committee. Our content is free but available only to wealth management professionals. [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. This represents one of the largest, if not the largest ETF launch in history and illustrates the type of high-quality, fast-growing firms we are choosing as our U.S. partners. At CI Financial, we promise to treat your data with respect and will not share your information with any third party. He holds a PhD in theoretical physics from Pierre and Marie Curie University (now Sorbonne University), and an M.Sc. Please go ahead. The revenue earned on these assets is recorded in the asset management segment. For every deal that weve done, we felt that we paid a fair price thats reflective of the quality of the platform that were acquiring, he added. If we did do it, it would be in the U.S. marketplace. Thanks. 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. CIs total assets have grown to $241 billion (at March 31, 2021) since he joined the company. Please. He was a member of the companys global executive management committee and sat on the boards of several of its international entities and AdvisorEngine, a digital wealth platform. The next question will come from Graham Ryding with TD Securities. Note there is $3.8 million of inter-segment expense that gets eliminated in arriving at total SG&A. December 23, 2022 WebCI Financials Strategic Priorities Update from CEO Kurt MacAlpine November 2019. Asset management flows, where are you seeing the biggest opportunity to move the needle on flows? In fact, all of the businesses we have acquired this year have grown organically. Prior to ADIA, Mr. Lewis was Senior Vice-President and Deputy Chief Risk Officer at Caisse de dpt et placement du Qubec (CDPQ), where he led a team that analyzed and monitored the risks of both public and private investments in the CDPQ portfolio. Prior to ADIA, Mr. Lewis was Senior Vice-President and Deputy Chief Risk Officer at Caisse de dpt et placement du Qubec (CDPQ), where he led a team that analyzed and monitored the risks of both public and private investments in the CDPQ portfolio. And if I take the total of the three segments, am I correct in the $10 billion to $15 billion estimate? In just two years, Toronto-based CI Financial has assembled, via acquisition, a $115 billion-asset independent RIA empire in the U.S. The Canadian equity and Canadian balance categories are two of the three most redeemed categories in the industry year-to-date. The company acquired 13 registered investment advisors in the US in 2020, along with Canadian advisor network Aligned Capital Partners. So the bar for us entering was obviously, higher and it was really important for us to do something very differentiated than what exists in the marketplace. So we are fortunate enough to be winning the vast majority of auctions that we are in. Thank you, Kurt. 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. Is that something that is -- well how does that prioritize for you? When it comes to alternatives, investors should capitalize with caution, Fraud losses in Canada hit new all-time high, Location matters when it comes to family business tax. This number only includes our current interest in these companies and does not include any growth or market assumptions. It also just to continue to reiterate wasn't planned redemptions. Addresses View Full Report. 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. 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. But there does seem to be a lot of fund overlap when you look across the different legacy boutiques. He also previously worked at PwC LLP, where he performed audit and business advisory services for multinational and mid-sized broker dealers. What I would say, we have sized the potential at-risk opportunity through sub-advised mandates that exist on bank or insurance owned platforms that have their own capabilities internally. If you rewind to January this isn't even a segment or a market that we were in. And those are all fine reasons to do it. 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? Thank you for the question. And where do you see the process perhaps being a longer effort to turn the ship around? So I remain very optimistic. When you think about M&A and wealth management versus asset management, it's really a different approach. The next question will come from Scott Chan with Canaccord. Last week, we announced our application to cross-list our common shares on the New York Stock Exchange. 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. We expect the cross-listing to increase CI's corporate profile in the U.S., expand our investor base and allow us to offer U.S. dollar-denominated shares in future U.S. RIA acquisitions. To that end, CI is spinning out its RIA business through an IPO that will open up 20% of the division to the public markets. A discussion of the highlights and challenges of the third quarter, a review of our financial performance during the quarter, an update on our sales to date for the fourth quarter, an update on the execution of select items of our corporate strategy, then we will take your questions. We just need a little more information to create your account. Sure. [Operator Instructions] The first question will come from Geoff Kwan with RBC Capital Markets. Kurt Macalpine, 62 Lives in We are confident that meaningful synergy opportunities exist, but we prefer not to give guidance. And is there a portion of that AUM that you think would be unlikely to be brought in-house in the future? Good morning, Geoff. So what I would say is, we're listing ourselves on the New York Stock Exchange effective next week. CI MacAlpine moved over from WidomTree Asset Management Canada and initiated the acquisition of his former company, which has now been folded into the rebranded CI Global Asset Management. His responsibilities included strategic asset allocation, quantitative research and alternative indexing activities, as well as sitting on the executive and tactical asset allocation committees for its Strategy and Planning Department. CEOs radical remake accompanied by staff exodus, higher debt, Chairman says of employee complaints: I could care less. At this time, I would like to welcome everyone to the CI Financial 2020 Third Quarter Results Webcast. And then just on the RIA acquisition pipeline like how would you describe the size of it today? On the other end of the spectrum you essentially have aggregators or integrator platforms that will do a deal with you but the terms and conditions by which they'll transact with you are that you need to change everything about your platform to fit into their platform. 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. Just maybe one last one if I could. I've been very pleased by how well our sales team has embraced the model, in terms of using the insights to identify and prioritize the opportunities in their territories. So you're right, it's not a cost-cutting effort. Free cash flow was up 12% to $143.9 million from $128.3 million last quarter. Welcome to Barrons Advisor! Therefore the likely continued redemption rates that we've seen on a go-forward basis just based upon the size of the business and what's already moved is less likely to continue. Kurt MacAlpine, CI Financial May 17, 2021 CEO CI FINANCIAL Since becoming CEO of CI Financial in 2019, Kurt MacAlpine has led the organization through So through our strategic integrated collaborative approach we will naturally work our way to an integrated platform. First, on the U.S. wealth management initiative. 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. By providing your email address below, you are providing consent to CI Financial to send you the requested Investor Email Alert updates. I am optimistic that we're going to work through the redemptions and put ourselves on a better path forward. So, there is a range of pricing within it. It's designed to deliver a better experience and ultimately better investment performance. Mr. MacAlpine you may begin. And then the question was well, which of the CI businesses would it ultimately come to? Youre almost done. In particular, Kurt is familiar with using digital strategies to enhance efficiencies and build new services and businesses, a key plank in CIs strategic plans.. 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. Thank you. Kurt MacAlpine, a Canadian with experience in management consulting and exchange-traded funds (ETFs), will take over CI on Sept. 1. So while we have experienced a couple of lumpy quarters of redemptions, virtually all of those have come from bank and insurance-owned platforms that are moving those assets in-house, specifically to an in-house team doing essentially the same thing. If we were to do a wealth deal -- sorry an asset management deal, it would either be to acquire a capability we don't have or to expand the footprint to a market that we're not currently in. There are very few -- I think our integrated platform is one of the five largest RIA platforms in the U.S. currently. He also oversaw the majority of the firms international businesses, which during his tenure included employees in Canada, Europe, Japan, Israel and Latin America and strategic partnerships in Asia and Australia and New Zealand. I assume this is low margin. If you experience any issues with this process, please contact us for further assistance. Yes. So that's kind of one extreme end of the spectrum. 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