Think you ought to have access? 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. And I've just got a follow-up. So by leveraging the best of what they do while integrating, we're going to get the best of all of the platforms we've acquired, as opposed to pushing them on to a platform that already exists. 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. Net income and adjusted net income of $130.6 million is up 9% from $120.2 million last quarter. Good morning, everyone, and welcome to CI Financial's third quarter earnings call. So, it's not easy to say here's the specific number because, it really depends upon the mandate, the strategy, the platform size and things like that. So it depends, Gary on when you're having a conversation. This copy is for your personal, non-commercial use only. 100 University Avenue, Eighth Floor. I think we're ahead of schedule relative to what we would have initially anticipated. Is this happening to you frequently? And we're operating a very differentiated value proposition which is the goal is to build the leading integrated platform in the U.S., but instead of just focusing on the financial element or pursuing a full integration, we are working with our partners to collectively build that platform. The integrated platform builts by the leaders of the businesses, based upon the feedback from their clients. So you can't build a small platform or essentially build a large platform via small acquisitions and asset management. Addresses View Full Report. Kurt Macalpine . 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. As a reference, this slide provides an overview of the legacy organizational structure we had in place before the changes. To opt-in for investor email alerts, please enter your email address in the field below and select at least one alert option. Note there is $3.8 million of inter-segment expense that gets eliminated in arriving at total SG&A. I think that includes the cash consideration and the contingent payment. There are very few -- I think our integrated platform is one of the five largest RIA platforms in the U.S. currently. In late August, we rolled out our cross-border wealth management partnership program where our advisers in Canada and the U.S. are working together to holistically service clients north and south of the border. Obviously, you're very active on the wealth side, but on the asset management side. His diverse experience spans asset allocation, portfolio construction, risk management, public and private markets, and fundamental and quantitative strategies. 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. WebHe has extensive experience in the global asset and wealth management industry, having previously served as Executive Vice-President and Head of Global Distribution for The company acquired 13 registered investment advisors in the US in 2020, along with Canadian advisor network Aligned Capital Partners. Okay, great. 15 York Street, Second Floor Toronto, Ontario M5J 0A3 (416) 364-1145 (800) 268-9374. 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You will see that we are now organized by investment capability not by boutique or sub-brand. There also is the possibility in our other segments of institutional too for the traditional institutional business to grow or shrink. 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. So I feel fantastic about the progress we've made. Not so much. 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. In just two years, Toronto-based CI Financial has assembled, via acquisition, a $115 billion-asset independent RIA empire in the U.S. That is helpful. View Reputation Profile. Financial industry executive Kurt MacAlpine will become the new CEO of independent asset management giant CI Financial Corp. MacAlpine, who takes over as chief executive from Peter Anderson on Sept. 1, was previously executive vice president and head of global distribution for WisdomTree Asset Management in New York. Yes. 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. So through our strategic integrated collaborative approach we will naturally work our way to an integrated platform. And the part that I'm most excited about is, we're doing deals with truly exceptional very high-quality firms. And then on the integration of your investment management teams, it sounds like this is more about process and driving fund performance as opposed to surfacing cost synergies. 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. Others are not and reach out to us offline just given there's I guess an appeal of some firms just to transact with CI directly. We are getting feedback that we are not necessarily the highest bidder on these but I think it's really our value proposition that's differentiating ourselves. There will be over time, but that wasn't really the focus of the effort. It does. 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. Please go ahead. (Podcast). 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. Two increasingly important categories where we are growing our market share. Thank you. Mr. Kelterborn is Executive Vice-President and Chief Legal Officer of CI Financial and leads the team responsible for all legal affairs of the corporation and its subsidiaries. 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. Yes. CI's SG&A in the third quarter was $108.8 million down from $109 million last quarter and $124.6 million in the third quarter last year. Just a follow-up is on M&A but outside of the wealth business, can you describe what your appetite is for asset managements M&A or other businesses that you would view as being complementary to your growth strategy? in theoretical physics and a B.Sc. Introductory comments for a webcast by Kurt MacAlpine, Chief Executive Officer, CI Financial: Good afternoon and thank you for joining me today. The $2.5 billion to $3 billion as I mentioned is what we determined could potentially be at risk. 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.. He has been with CI Global Asset Management for over 20 years, serving in progressively more senior roles in Information Technology. 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. So for wealth management, because of the fragmentation of the RIA marketplace in order for us to create scale, we really have to do a lot of 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. 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. 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. I don't like to give guidance on anything as I think oftentimes it's just guessing. Understood. acquisitions we have made this year were down $19.4 million, or almost 16% from the third quarter of 2019, and down $1.7 million sequentially. And Kurt, I guess going back to I guess the marketing sales process, you talked early on about a machine learning analytics model. And I think that's really resonating. 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. So where we come in is we come in -- in the middle. We retired $26 million of debt, and we paid $39 million in dividends. Live from New York, is focused on bringing you the most important global business and breaking markets news and information as it happens. The velocity of deals that we're able to do is picking up. All of our corporate logos have been updated to the new ones shown on this page. He holds a PhD in theoretical physics from Pierre and Marie Curie University (now Sorbonne University), and an M.Sc. In the third quarter U.S. AUM grew 10% to $4.7 billion on net sales of $300 million and market performance. Kurt Macalpine, 62 Lives in Boston, MA. Prior to Nortel, Mr. Kelterborn was a partner at McMillan Binch (now McMillan LLP), practising in the firms corporate/commercial and securities law groups. So they're taking some form of stake in the business and allowing the business to continue to operate on a freestanding independent basis. Prior to joining First Asset, Mr. Kelterborn was Vice-President and General Counsel of Claymore Investments Inc. (now part of BlackRock). It just doesn't really fit in regards to what we're trying to build, which is ultimately the leading private wealth platform in the U.S. And why would that be? I would now like to turn the call over to Mr. Kurt MacAlpine, CEO of CI Financial. This information is meant to help quantify the impact we've made in a short period in executing against our wealth management strategy. 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. Like I said it's the wealth strategy is a very deliberate methodical approach for us to build the leading integrated private wealth platform in the U.S. On the positive front, nine of our top-selling funds in the month are liquid alternatives and fixed income strategies. So we're doing things more digital. 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. So we needed to evolve our investor platform. Is that a priority? Thank you, Kurt. Our content is free but available only to wealth management professionals. 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. The next question will come from Gary Ho with Desjardin Capital Markets. So if the opportunity presents itself, it's financially attractive accretive and a great opportunity to diversify and transform the business we'll look. And CI bought back 4.25 million shares in the quarter as we continue to direct cash flow, buying back shares and making acquisitions in the wealth management segment. MacAlpine takes over from Peter Anderson on Sept. 1. On that wealth management slide, the -- I guess the EBITDA progression year-to-date from $15 million to $73 million. Good morning. 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. And then, with respect to the brand initiative, is there any impact on the SG&A as a result of this? I will share more details on the investment platform changes in a few moments. Youre almost done. In just two years, Toronto-based CI Financial has assembled, via acquisition, a $115 billion-asset independent RIA empire in the U.S. So some of the deals that we are doing are part of an auction process we're participating. I'd say, it's directionally in the right direction, Gary. articles a month for anyone to read, even non-subscribers! Thank you. 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. And there is a few firms that fit this mold and may be called serial aggregators or something like that. 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. He has been with CI Global Asset Management for over 20 years, serving in progressively more senior roles in Information Technology. And once again that was a speculation based upon the breakdown of the platform. And on day one everything is -- everything that you do is what we do. And it really depends upon the quality of platforms that are coming to market, and then how fast or slow those processes ultimately move. Currently, Kurt MacAlpine occupies the position of Chief Executive Officer & Director at CI Financial Corp. and Chief Executive Officer & Director at CI Private Wealth. By providing your email address below, you are providing consent to CI Financial to send you the requested Investor Email Alert updates. Prior to Nortel, Mr. Kelterborn was a partner at McMillan Binch (now McMillan LLP), practising in the firms corporate/commercial and securities law groups. Good morning, Geoff. We just need a little more information to create your account. Hi. 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. So it is a lever that, we could use, but we'll do it in a very disciplined manner when they do. Kurt MacAlpine has been facing his share of headwinds with CI Financials recent business decisions, but hes convinced hes charted the right course for the company, and he plans to stick with it. But what do you bring to the table that they don't? If you have an ad-blocker enabled you may be blocked from proceeding. I would say our approach to capital allocation overall has been very dynamic. So Graham, in terms of the current run rate, it's hard to predict go-forward acquisitions based upon the current run rate. Potentially be at risk the impact we 've made think that includes the cash consideration and contingent... 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