As we think about globalizing what I would say is, I'm not sure if we'll do something to globalize. On November 12, CEO Kurt MacAlpine discussed with the Globe and Mail CIs recent RIA acquisitions, and their plans to continue their rapid expansion. In just two years, Toronto-based CI Financial has assembled, via acquisition, a $115 billion-asset independent RIA empire in the U. 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. Hi. 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? So we needed to evolve our investor platform. 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 Mr. MacAlpine holds a Bachelor of Commerce degree from Saint Marys University and an MBA from Queens University. Our content is free but available only to wealth management professionals. In just two years, Toronto-based CI Financial has assembled, via acquisition, a $115 billion-asset independent RIA empire in the U.S. Fast forwarding to today, our rebranding effort is well underway. 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 To read this article, please provide the information below so we can confirm that you work in the industry. Net debt increased $1.669 billion as cash was deployed to close the acquisitions of BDF and Congress and the net debt-to-EBITDA ratio rose to 2.1 times. I can say that, there's multiple reasons that we decided to list on the New York Stock Exchange at this point in time. I mean, the biggest challenge was we would constantly get feedback from clients that, it's complex and challenging to do business with CI. The $2.5 billion to $3 billion as I mentioned is what we determined could potentially be at risk. [Operator Instructions] The first question will come from Geoff Kwan with RBC Capital Markets. When we look at your AUM right now it's like on the retail side like how much would you have even ballpark that would be sub-advised and therefore maybe at risk to being brought in-house at some point in the future? If you rewind to January this isn't even a segment or a market that we were in. So our ability to get to much larger asset levels will be a function of a series of consistent transactions. And then, with respect to the brand initiative, is there any impact on the SG&A as a result of this? He was also a member of the CDPQ asset allocation committee. Thank you. 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. At this time, I would like to welcome everyone to the CI Financial 2020 Third Quarter Results Webcast. Just one follow-up. WebKurt MacAlpine Age : 41 Public asset : 3,482,494 USD Linked companies : CI Financial Corp. Summary Currently, Kurt MacAlpine occupies the position of Chief Executive This number only includes our current interest in these companies and does not include any growth or market assumptions. Kurt, just want to go back to the U.S. RIA acquisitions a little bit. 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. We don't break out the specific numbers. So Tom, we don't typically break out the margin. We made considerable progress across our rebranding efforts with the rollout of our new website in October. I did share some additional guidance on the institutional business in that breakdown. So I feel fantastic about the progress we've made. 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. We are making these changes while protecting the elements of our investment platform that make us unique. So, they may not be growing their businesses, they may be transitioning to more lifestyle practices or transitioning out of the business. Once we started to do deals in this space we started to hit the radar of a lot of the banks that are working with these firms to help them transact. I would say the vulnerabilities remain the vulnerabilities that we currently have. 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. Sure. 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. And it would be more opportunistic in nature. Addresses View Full Report. 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. On one hand you'd see more call it financially oriented buyers that are essentially looking to take equity stakes in individual's businesses and then participating in the ongoing cash flows of those business. Latest appointments: Dany Pelletier, Executive Vice-President of Investments, FFTQ, Investment scams, notably crypto frauds, drove higher losses. 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. 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. First, on the U.S. wealth management initiative. Is that a priority? And those are all fine reasons to do it. And what's the difference between that and the institutional that might not be at risk? Good morning. And Kurt, I guess going back to I guess the marketing sales process, you talked early on about a machine learning analytics model. Two increasingly important categories where we are growing our market share. You can unsubscribe to any of the investor alerts you are subscribed to by visiting the unsubscribe section below. 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. 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. 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. Thanks, Doug. 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. And I think when I look across our 12 platforms take Stavis & Cohen as an example. 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. As a large and independent firm with global reach, CI is well positioned to take advantage of the many opportunities in asset and wealth management. I think the vulnerabilities, so I'd say that's what I'm most excited about the pivot to IIROC in those particular categories. And then the third part of our institutional business would be sub-advisory mandates, which is really broken into two pieces. 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. Okay. It might be, it might not be. But the major nuance is that it'll be done by the leaders of the business as opposed to done to the leaders of the business by CI. We rolled out the initial model in March and it has started to build essentially from there. 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. Free cash flow was up 12% to $143.9 million from $128.3 million last quarter. So, I would say Scott, it's still very early days. All of our corporate logos have been updated to the new ones shown on this page. So what I would say is, we're listing ourselves on the New York Stock Exchange effective next week. I also wanted to provide some additional information on our run rate wealth management profitability after the deals we've announced recently had closed. The settlement comes as TD works its way through two major acquisitions in the U.S. MacAlpine declined to provide the share of the U.S. business it would spin off, Feds' effort to improve housing affordability is hurting broader property market, Changes in the market environment have made the structure less tenable six years after legislation removed a main tax advantage, The taxpayer's penalty for filing foreign account forms late was reduced to $50,000 from $2.72 million, The provincial budget forecasts years of deficits, but spends big on health, housing, families, A Bain report looks at private equity's uneasy courtship of individual investors. You must click the activation link in order to complete your subscription. So every month essentially, we capture all of the inputs from various levels of engagement and the model gets smarter and more detailed. So the ability to buy scale and wealth management given where we're focused, doesn't really exist. Sure. Copyright 2023 Surperformance. One would be capability expansions. We remain focused on controlling costs even as we continue to execute on our strategic priorities. Our daily newsletter is FREE and keeps you up-to-date with the world of wealth. 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. The infrastructure of a bank, but with a boutique feel, NBFWM offers broad services and security for clients. 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. It is a profitable business on a stand-alone basis. 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. But that's not to say depending on how the business evolves over time that we may spend a little bit more on a go-forward basis but it's not something we've done today. And it really depends upon the quality of platforms that are coming to market, and then how fast or slow those processes ultimately move. 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. 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. 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. After submitting your request, you will receive an activation email to the requested email address. 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. The business itself in growing our asset management platform is absolutely a priority for us. 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. Sure. 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. 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. Please go ahead. And this is CI's third best quarterly earnings per share number, since converting back to a corporation a decade ago. So we are fortunate enough to be winning the vast majority of auctions that we are in. And that's really important to us because these are people businesses and the ultimate goal of them is to deliver great investment and planning outcomes for clients. I would now like to turn the call over to Mr. Kurt MacAlpine, CEO of CI Financial. So growing and building and improving the business is critically important to our strategy. Prior to that, he held a variety of roles in the financial technology industry at companies such as DST Systems (now IFDS). 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. It's designed to deliver a better experience and ultimately better investment performance. 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. This chart outlines new adviser assets that have been on-boarded to our wealth platform over the past three years and compares them to the amount that we've on-boarded so far in 2020. 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. MacAlpine takes over from Peter Anderson on Sept. 1. CI When you think about asset management acquisitions, there's probably two types of acquisitions that would potentially make sense for CI. Hi. Current Address: 254 Park Avenue S Apt 6b, New York, NY 10010 Has Lived In: 101 Canal Street Apt 512, Boston, MA 02114. An error has occurred, please try again later. I will now provide an update on the progress we've made on some of our strategic initiatives. 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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. So if I go back to the same slide last quarter where you had the $40 million EBITDA lift so am I wrong to think that's the EBITDA contribution related to that $400 million acquisitions? That's great. All rights reserved. in mathematics and physics from Universit de Montral. 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. I will share more details on the investment platform changes in a few moments. Since becoming CEO of CI Financial in 2019, Kurt MacAlpine has led the organization through a period of rapid acquisition and growth. The next question will come from Geoff Kwan with RBC Capital Markets. Kurt MacAlpine, a Canadian with experience in management consulting and exchange-traded funds (ETFs), will take over CI on Sept. 1. How can we help you? REGISTRAR & TRANSFER AGENT. Live from New York, is focused on bringing you the most important global business and breaking markets news and information as it happens. 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. 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 there is a few firms that fit this mold and may be called serial aggregators or something like that. Would those be. 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. And that was really the next tranche of deals. He was also a member of the CDPQ asset allocation committee. Prior to Nortel, Mr. Kelterborn was a partner at McMillan Binch (now McMillan LLP), practising in the firms corporate/commercial and securities law groups. 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. So I had a high degree of confidence in them and they had a working familiarity with me. And there could be opportunities for us to acquire specialized capabilities alternatives, as an example or something like that. It's a smaller portion of the line, Scott. 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And the retirement space or the defined contribution space has been relatively flat for us as well and that's an area we're looking to grow. When you think about M&A and wealth management versus asset management, it's really a different approach. NEI Clean Infrastructure Fund expands NEIs suite of impact investment funds and helps investors ride the massive secular shift towards clean electricity infrastructure. 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. 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. Our daily newsletter is FREE and keeps you up-to-date with the world of wealth. Yes. 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. So we're doing things more digital. in theoretical physics and a B.Sc. Copyright 2023 Dow Jones & Company, Inc. All Rights Reserved. MacAlpine, who hails from Saint John, NB, has a commerce degree from Halifaxs Saint Marys University and an MBA from Queens University. But what do you bring to the table that they don't? Mr. Muni is a graduate of Pace University in New York and is a Certified Public Accountant. View Reputation Profile. We just need a little more information to create your account. 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. HEAD OFFICE. And I think that's really resonating. Mr. MacAlpine was appointed Chief Executive Officer and Director of CI Financial in September 2019. I had a good understanding of their particular businesses, their capabilities, their teams and their growth rate. We have no further questions at this time. And once again that was a speculation based upon the breakdown of the platform. 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. And if you're not like what would be the reasons why you're not completing them? Financial industry executive Kurt MacAlpine will become the new CEO of independent asset management giant CI Financial Corp. MacAlpine, who takes over as We remain focused on controlling costs even as we continue to execute on our strategic priorities. As Executive Vice President and Chief Financial Officer, Mr. Muni overseas the companys global finance operations and investor relations teams. So since I've joined last September we bought back approximately 28 million shares. The directors of CI Financial Corp. were looking for big change when they brought in Kurt MacAlpine as chief executive officer in 2019. Thank you for the question. Yes. Before that, he was a partner at consulting firm McKinsey & Co., focusing on the asset and wealth management industries. And I've just got a follow-up. The board is confident that his deep industry knowledge, proven leadership and experience in developing and executing growth-oriented strategic initiatives will ensure that CI remains a leader in a rapidly changing business environment, he added. Youre almost done. So as it relates to the total AUM size of CI in its current standing very small, but that's essentially a little bit of more information in terms of what's remaining getting those specific criteria. 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. So where we come in is we come in -- in the middle. We look forward to connecting next quarter. 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. 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.

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