But what do you bring to the table that they don't? Wallmine is a radically better financial terminal. We are also taking this opportunity to better structure our investment platform to foster improved communication and collaboration across the organization, positioning us to deliver the full-scale and capabilities of CI to our clients not just the capabilities of our legacy investment boutiques. WebKurt Macalpine was born in 1960 and is currently 63 years old. 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. And we're only $16.5 billion so far. 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. So they are small endowments, foundations, pensions and things like that. Bloomberg Markets live from New York, focused on bringing you the most important global business and breaking markets news and information as it happens. 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. Please contact us at, We encountered an error. Thank you for the question. So, it is not panning the majority or a meaningful portion of that number. 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 you can't build a small platform or essentially build a large platform via small acquisitions and asset management. The next question will come from Graham Ryding with TD Securities. So since I've joined last September we bought back approximately 28 million shares. 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. In October, we saw a 19% improvement in Canadian retail net sales and a 63% improvement in institutional net sales on a sequential basis. And I think we're off to a really great start in Liquid Alternatives. 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. Kurt Macalpine . Jason Weyeneth, CFA Vice-President, Investor Relations & Strategy, Chief Executive Officer and Director, CI Financial, Executive Vice-President and Chief Financial Officer, CI Financial, Executive Vice-President and Head of Investment Management, Executive Vice-President and Chief Legal Officer, CI Financial, Executive Vice-President and Chief Human Resources Officer. He has been with CI Global Asset Management for over 20 years, serving in progressively more senior roles in Information Technology. So it is a lever that, we could use, but we'll do it in a very disciplined manner when they do. HEAD OFFICE. 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 Please try again or contact. Can you do this without issuing equity? I would anticipate over time, when you think about the SG&A reductions that we've made overall, what we're trying to do is to rightsize the businesses that are -- have declined or are experiencing some declines and redeploying that SG&A to growth areas and growth initiatives of our business. He was also a member of the CDPQ asset allocation committee. Mr. Urbanky holds an MBA from Rotman School of Business and a masters degree in computer science from University of Toronto and has attended leadership and management programs at Queens School of Business. First, on the U.S. wealth management initiative. Yes. You will note that our business was aligned by boutique brands with many of the brands offering competing mandates and capabilities. And if you're not like what would be the reasons why you're not completing them? All of our corporate logos have been updated to the new ones shown on this page. 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. I'd say, it's directionally in the right direction, Gary. Not so much. 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. So Graham, in terms of the current run rate, it's hard to predict go-forward acquisitions based upon the current run rate. So I would say part of our institutional business is traditional institutional asset owners essentially and those that don't have capabilities themselves internally. 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 directors of CI Financial Corp. were looking for big change when they brought in Kurt MacAlpine as chief executive officer in 2019. 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. And so we come into the marketplace we're strategic permanent capital. 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. After the speakers remarks, there will be a question-and-answer session. Mr. Kelterborn also serves as a director of the Canadian Exchange Traded Funds Association and holds a BA from Carleton University and an LLB from the University of Ottawa, and was called to the Ontario Bar in 1992. Bloomberg Markets Americas. You will see that we are now organized by investment capability not by boutique or sub-brand. in theoretical physics and a B.Sc. And then the question was well, which of the CI businesses would it ultimately come to? 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. 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. Good morning, Geoff. I will now provide an update on the progress we've made on some of our strategic initiatives. EPS of $0.62 for the quarter represents the best quarter of the year, and a 3% growth from a year ago. I would say the vulnerabilities remain the vulnerabilities that we currently have. As I said in the press release announcing this webcast, the last few weeks have been unprecedented, with the coronavirus having a significant impact on our society, our economy, and the global As a reminder, here is a quick review of our three strategic priorities which are modernizing asset management, expanding wealth management and globalizing our company. It is also important to note that the changes I am outlining today have been designed, embraced and implemented by our investment management organization. Copyright 2023 Surperformance. When I look at our institutional business overall what I'd say is there's probably, three different chunks of business. NEI Clean Infrastructure Fund expands NEIs suite of impact investment funds and helps investors ride the massive secular shift towards clean electricity infrastructure. Is that a priority? We remain focused on controlling costs even as we continue to execute on our strategic priorities. Now Doug will review the financial results for the quarter. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. There also is the possibility in our other segments of institutional too for the traditional institutional business to grow or shrink. 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.
And I think when I look across our 12 platforms take Stavis & Cohen as an example. Sub-advisory mandates that have been outsourced to us specifically by funds that have their own competing capabilities internally and then sub-advisory mandates that have been outsourced to us by firms that don't. 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. CONTACT US. The next question will come from Gary Ho with Desjardin Capital Markets. And where do you see the process perhaps being a longer effort to turn the ship around? Just going back to the comment on the institutional AUM at risk $2.50 billion to $3 billion, I thought at one point that number or your institutional AUM was at $10 billion to $15 billion. 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. Or are there pieces that I'm missing in those two numbers? Sure. And now we're at a fascinating place where I probably get a couple of firms reaching out every week directly bypassing a bank or a process just looking to do a deal with CI specifically. Good morning, everyone, and welcome to CI Financial's third quarter earnings call. So, I would say Scott, it's still very early days. 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. Computershare Investor Services. And the part that I'm most excited about is, we're doing deals with truly exceptional very high-quality firms. And it really depends upon the quality of platforms that are coming to market, and then how fast or slow those processes ultimately move. We do think that our share price is significantly undervalued. 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. 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. This includes $125.4 billion of assets under management and $77 billion of wealth management assets. Earnings per share of $0.62, was up $0.06 per share from the second quarter and up $0.02 from the third quarter last year. The first one is in the segments of advisers that we're selling products to. Why? At CI Financial, we promise to treat your data with respect and will not share your information with any third party. Think you ought to have access? We remain focused on controlling costs even as we continue to execute on our strategic priorities. The next question will come from Geoff Kwan with RBC Capital Markets. Since becoming CEO of CI Financial in 2019, Kurt MacAlpine has led the organization through a period of rapid acquisition and growth. Our daily newsletter is FREE and keeps you up-to-date with the world of wealth. Just one follow-up. For the best Barrons.com experience, please update to a modern browser. An error has occurred, please try again later. Current Address: 254 Park Avenue S Apt 6b, New York, NY 10010 Has Lived In: 101 Canal Street Apt 512, Boston, MA 02114. 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. You're around there. I would say our approach to capital allocation overall has been very dynamic. 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. If not, we're pretty close. 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. Okay, great. If you experience any issues with this process, please contact us for further assistance. I don't feel that it is imperative that we do it via major M&A. The second part of our institutional business would be the retirement space, typically working with employers on to find contribution plans. 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.. On that wealth management slide, the -- I guess the EBITDA progression year-to-date from $15 million to $73 million. So if you think about, the nature of distribution at that point in time, the corporate class that we had some of the exclusive distribution partnerships business was coming to CI. CI noted that Anderson will remain with the firm in the short term to assist with the transition of responsibilities.. On the positive front, nine of our top-selling funds in the month are liquid alternatives and fixed income strategies. Our daily newsletter is FREE and keeps you up-to-date with the world of wealth. LinkedIn is the worlds largest business network, helping professionals like Kurt MacAlpine discover inside connections He joined CI Financial in May 2021 from WisdomTree Investments, Inc., a publicly traded asset manager where he served as Executive Vice President and CFO since 2008. So that really seems to be where our institutional business has experienced the vast majority of our redemptions over the past year. 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. [Operator Instructions] The first question will come from Geoff Kwan with RBC Capital Markets. He joined CI in 2016 from First Asset Investment Management, where he served as Senior Vice-President, Legal and Operations. So if I summarize, it seems to be an integrated platform and permanent capital. We continue to take a dynamic approach to capital allocation that includes debt reduction, the return of capital to shareholders through share repurchases and dividends and acquisitions. And I would call this a close second or 1A and it's a human capital business and the primary relationship in any wealth managers between the adviser team and the client in particular. So, they may not be growing their businesses, they may be transitioning to more lifestyle practices or transitioning out of the business. And I would say the other area that I have a lot of excitement for is our fixed income and the relationship that we've struck with DoubleLine and the very early success that we've experienced there on a go-forward basis. 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. As Executive Vice President and Chief Financial Officer, Mr. Muni overseas the companys global finance operations and investor relations teams. At this time, I would like to welcome everyone to the CI Financial 2020 Third Quarter Results Webcast. in mathematics and physics from Universit de Montral. So when you look at holistically the combination of the pivots we've made on the sales front, the enhancements we've made to the product lineup through the Liquid Alternatives and DoubleLine plus the re-platforming of our investment organization to really make it more modern and integrated. Finally Cabana Group, one of our U.S. RIAs launched $1 billion lineup of target drawdown strategy ETFs in September. What differentiates you as you embark on this strategy? As everyone knows M&A in and of itself is quite lumpy. All lines are in a listen-only mode. We are making these changes while protecting the elements of our investment platform that make us unique. I assume this is low margin. Addresses View Full Report. This approach limits or eliminates the client disruption typically associated with investment platform changes. But yes, the margins on the institutional business are lower than what we would see on retail. So you're right, it's not a cost-cutting effort. So sorry, Tom a little bit long-winded, but we really do kind of sit in the middle of these two kind of more extreme models. We've detected you are on Internet Explorer. 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