So if we're not additive to the process on the client front, we're not interested. Wealth management assets jumped to $66.1 billion on market performance and with the addition of BDF and Congress in the third quarter. It also excludes any strategic or cost synergies, asset management product sales, business model improvements or planned but unannounced transactions. 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. Just maybe one last one if I could. CI SG&A in the wealth segment moved up slightly to $30.4 million even though incremental SG&A from RIAs acquired this year was more than $2.9 million in the quarter. We continue to scale our wealth management platforms in the U.S. having completed or announced 12 transactions for the year-to-date, representing nearly $22 billion of AUM. 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. If you experience any issues with this process, please contact us for further assistance. I would now like to open up the call for questions. CI noted that Anderson will remain with the firm in the short term to assist with the transition of responsibilities.. 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 I think that's really resonating. To opt-in for investor email alerts, please enter your email address in the field below and select at least one alert option. He has been with CI Global Asset Management for over 20 years, serving in progressively more senior roles in Information Technology. They want to benefit from an integrated platform. As Head of Investment Management, Mr. Lewis leads a team of more than 100 investment professionals at CI Global Asset Management and oversees the continued development of the firms integrated global investment platform. 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. And if I take the total of the three segments, am I correct in the $10 billion to $15 billion estimate? A former McKinsey consultant and executive at WisdomTree Asset Management Inc., MacAlpine landed the job three years ago with a pitch to shake CI out If you experience any issues with this process, please contact us for further assistance. 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? As for its expansion, it appears CI has no plans to slow down. 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. So it depends, Gary on when you're having a conversation. 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: [email protected] Phone number: +1-xxx-xxx-5429 Last updated: 2021-04-29 Social media: Sign Up to Get Free Contacts Use a Browser We are not changing portfolio managers on funds, the investment management processes they follow or our fund lineup. On that wealth management slide, the -- I guess the EBITDA progression year-to-date from $15 million to $73 million. And I think just if you look at not only the number of deals we've done, but the quality of the firms that deals with us, I think, we're really starting to differentiate and stand out as the preferred buyer or partner for these RIAs in the market. His previous position, Chief Technology Officer, included overseeing the technological functions at CI. Please disable your ad-blocker and refresh. It does. Not so much. Now unlike wealth management where you can diversify through smaller transactions, in asset management you really have to do something larger in nature just because if you were to pivot and extend beyond the Canadian marketplace you would need to have a platform that has embedded retail relationships, institutional coverage, platform approvals and things like that. And Kurt, I guess going back to I guess the marketing sales process, you talked early on about a machine learning analytics model. And then the third part of our institutional business would be sub-advisory mandates, which is really broken into two pieces. As a reference, this slide provides an overview of the legacy organizational structure we had in place before the changes. 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. I mean, if a considerable improvements on a year-over-year basis, right. So I would say the focus so far has been wealth management clearly given the velocity of deals we've done in the RIA space. CEO Kurt MacAlpine isnt having it. The company acquired 13 registered investment advisors in the US in 2020, along with Canadian advisor network Aligned Capital Partners. Net income and adjusted net income of $130.6 million is up 9% from $120.2 million last quarter. 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. Understood. Youre almost done. Yes. The next step is an initial public offering of as much as 20% of its US wealth management business. 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. Yes, thanks very much. Hi. The next question will come from Gary Ho with Desjardins Capital Market. So I remain very optimistic. Copyright 1996-2023 KM Business Information Canada Ltd. So I would say our business, I think part of the benefit of our business is our singular focus really on the asset and wealth management industry. He was also a member of the CDPQ asset allocation committee. Mr. Muni is a graduate of Pace University in New York and is a Certified Public Accountant. We are making these changes while protecting the elements of our investment platform that make us unique. I believe that number right now in terms of the assets at risk is probably in the range of $2.50 billion to $3 billion total. But the way, we had structured our investment platforms we were only able to deliver the scale at the individual boutique level. WebKurt MacAlpine Chief Executive Officer and Director, CI Financial. Can you quantify how much of that comes from the line to get a sense on the U.S. RIA traction? View Reputation Profile. Prior to that, he was a sell-side analyst covering asset and wealth managers at Piper Jaffray. HEAD OFFICE. I had a good understanding of their particular businesses, their capabilities, their teams and their growth rate. It has also been leading the way in innovation, making plans to launch the worlds first Ether ETF, in addition to launching the CI Galaxy Bitcoin ETF (BTCX.B and BTCX.U) in March. The Canadian equity and Canadian balance categories are two of the three most redeemed categories in the industry year-to-date. In the process, its drawn the ire 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. It really depends. His diverse experience spans asset allocation, portfolio construction, risk management, public and private markets, and fundamental and quantitative strategies. 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. I don't like to give guidance on anything as I think oftentimes it's just guessing. Jason joined CI last week from WisdomTree, where he was Head of Investor Relations. If we did do it, it would be in the U.S. marketplace. 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. His previous position, Chief Technology Officer, included overseeing the technological functions at CI. His diverse experience spans asset allocation, portfolio construction, risk management, public and private markets, and fundamental and quantitative strategies. 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. Is that a priority? I assume this is low margin. I don't think it makes sense for us to directly enter Europe or Asia or Latin America at this point. Please go ahead. We are in the early stages of the strategic transformation of our sales function and our investment platform and we are confident that these actions will lead to better flows. 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. During the quarter, we spent $78 million to repurchase 4.3 million shares. Yeah. Thank you. Sure. The first one is that we need the client experience to be equal, but ideally significantly better post the CI transaction and pre-CI transaction. So as we continue -- now that we have this integrated investment platform where we have clarity and consistency, we do have some gaps in our platform. Bloomberg Markets live from New York, focused on bringing you the most important global business and breaking markets news and information as it happens. By accepting this notice and continuing to browse our website you confirm you accept our Terms of Use & Privacy Policy. Good morning. So I would say part of our institutional business is traditional institutional asset owners essentially and those that don't have capabilities themselves internally. So what I would say is, we're listing ourselves on the New York Stock Exchange effective next week. Prior to joining First Asset, Mr. Kelterborn was Vice-President and General Counsel of Claymore Investments Inc. (now part of BlackRock). Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. 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. At WisdomTree, a global asset manager and exchange-traded fund sponsor based in New York, Mr. MacAlpine was responsible for all client-facing functions globally, including distribution, marketing, data intelligence and strategy, business development and client solutions. The directors of CI Financial Corp. were looking for big change when they brought in Kurt MacAlpine as chief executive officer in 2019. Kurt MacAlpine has been on an eye-opening run of RIA deals -- $16 billion in managed assets-- in less than ten months, but some industry watchers say he's flying too high in an overvalued market. 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. document.write(CurrentYear) So they are small endowments, foundations, pensions and things like that. It also just to continue to reiterate wasn't planned redemptions. NEI Clean Infrastructure Fund expands NEIs suite of impact investment funds and helps investors ride the massive secular shift towards clean electricity infrastructure. They recognize the need to get better, but they don't necessarily feel and I fully agree with them that there's one firm out there that does everything better than everybody else. 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. Earlier this year, Anderson said he planned to retire by mid-2020. Thank you for the question. And then the question was well, which of the CI businesses would it ultimately come to? MacAlpines overhaul has included about 30 debt-fueled acquisitions, a New York Stock Exchange listing, a new US headquarters in Miami and a major restructuring of the companys Canadian fund-management arm. If I look at what you're doing in the U.S. with respect to RIAs I wonder if you could compare your business model to say competitors here and we certainly know there's one publicly listed competitor. We rolled out what we believe is Canada's first machine learning model or predictive algorithm for sales and marketing process in Canadian asset and wealth management. CEOs radical remake accompanied by staff exodus, higher debt, Chairman says of employee complaints: I could care less. Share this article and your comments with peers on social media, IA Financial Group aiming for dual-registered one wealth strategy, How to support financial planning during uncertain economic times, TD Bank to pay US$1.2 billion to settle Stanford Ponzi scheme lawsuit, CIs U.S. business ready for IPO, CEO says, The unwelcome fallout from the foreign buyer ban, Popularity of corporate-class funds wanes, U.S. Supreme Court rules in taxpayers favour on FBAR issue, Private equity firms may need untapped retail market to grow. Prior to Nortel, Mr. Kelterborn was a partner at McMillan Binch (now McMillan LLP), practising in the firms corporate/commercial and securities law groups. I don't think you'll see us doing straight scale acquisitions in asset management doubling down on capabilities that we already have in markets that we're already present in. I can say that, there's multiple reasons that we decided to list on the New York Stock Exchange at this point in time. Yes. Were sorry, but we are unable to verify that you are a wealth management professional. Computershare Investor Services. And the three transactions you announced in the last 10 days, would that be included in that number? 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. Thank you for the question. Copyright 2023 Dow Jones & Company, Inc. All Rights Reserved. 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. And just to be clear, maybe it was Scott's question as well, but on that slide 14 where you had the $73 million in wealthy EBITDA. Okay. 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. Sure. And I've been very pleased by how well our marketing team has embraced it to really set up and structure all of the campaigns and engagement models that we're ultimately building. He has Thank you for the question. 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. It is also important to note that the changes I am outlining today have been designed, embraced and implemented by our investment management organization. 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. 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Also just to continue to reiterate was n't planned redemptions, Inc. All Rights Reserved, and. Management, public and private markets, and fundamental and quantitative strategies but unannounced transactions balance are! Any issues with this process, please enter your email address in the industry year-to-date growth rate from!
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