Our content is free but available only to wealth management professionals. It really depends. The next step is an initial public offering of as much as 20% of its US wealth management business. Mr. MacAlpine you may begin. 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. HEAD OFFICE. Next, I will update you on our corporate rebranding initiative. 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. 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. On the positive front, nine of our top-selling funds in the month are liquid alternatives and fixed income strategies. He was also a member of the CDPQ asset allocation committee. 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. I would say if you think about the journey we've been on the first few deals that we had started with or prioritized were firms that I had professional relationships with in prior lives. I think the vulnerabilities, so I'd say that's what I'm most excited about the pivot to IIROC in those particular categories. Finally Cabana Group, one of our U.S. RIAs launched $1 billion lineup of target drawdown strategy ETFs in September. 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. As you can see, we've experienced phenomenal growth this year. 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. Thanks and good morning. 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. The other type of opportunity that could exist would be an opportunity for us to diversify beyond the Canadian marketplace. 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. 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. So our ability to get to much larger asset levels will be a function of a series of consistent transactions. 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. In just two years, Toronto-based CI Financial has assembled, via acquisition, a $115 billion-asset independent RIA empire in the U.S. Prior to joining First Asset, Mr. Kelterborn was Vice-President and General Counsel of Claymore Investments Inc. (now part of BlackRock). Hi. The velocity of deals that we're able to do is picking up. Finally, I will discuss changes that we've made to our investment function. The $2.5 billion to $3 billion as I mentioned is what we determined could potentially be at risk. Can you do this without issuing equity? Please contact us at, We encountered an error. Newcom Media Inc. We use cookies to make your website experience better. 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. Yes. 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. This copy is for your personal, non-commercial use only. CEOs radical remake accompanied by staff exodus, higher debt, Chairman says of employee complaints: I could care less. CIs total assets have grown to $241 billion (at March 31, 2021) since he joined the company. 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. 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. That is helpful. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. I would say the vulnerabilities remain the vulnerabilities that we currently have. 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 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. We continue to make great strides executing our corporate strategy. Prior to joining First Asset, Mr. Kelterborn was Vice-President and General Counsel of Claymore Investments Inc. (now part of BlackRock). When you think about asset management acquisitions, there's probably two types of acquisitions that would potentially make sense for CI. 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In our Canadian business alone, we have financial advisory relationships with over 300,000 families many of whom have assets in the U.S. today. Is this happening to you frequently? Financial industry executive Kurt MacAlpine will become the new CEO of independent asset management giant CI Financial Corp. MacAlpine, who takes over as In the process, its drawn the ire of rivals who say CI has overpaid to take elite firms off the market. So I remain very optimistic. 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. We rolled out the initial model in March and it has started to build essentially from there. 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. As the President and Chief Operating Officer of CI, the total compensation of Darie Urbanky at CI is CAD$1,225,000. 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. So we needed to evolve our investor platform. If not, we're pretty close. The integrated platform builts by the leaders of the businesses, based upon the feedback from their clients. On a year-over-year basis our flows have declined primarily -- driven primarily by our large asset base in Canadian equity and Canadian balance categories, which accounted for the majority of our redemptions. The ability for any boutique to deliver scale benefits was driven by the scale they had generated independently. EPS of $0.62 for the quarter represents the best quarter of the year, and a 3% growth from a year ago. And there is a few firms that fit this mold and may be called serial aggregators or something like that. Thank you. Before that, he was a partner at consulting firm McKinsey & Co., focusing on the asset and wealth management industries. So I feel fantastic about the progress we've made. If I look at just the pipeline of firms that we are having conversations with it's really increasing on an ongoing basis. I just really don't think, you can do that and we guarantee a better client experience and guarantee a better employee experience. It might be, it might not be. We do think that our share price is significantly undervalued. The infrastructure of a bank, but with a boutique feel, NBFWM offers broad services and security for clients. 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? Prior to WisdomTree, Mr. Muni served as Chief Accounting Officer of International Securities Exchange Holdings, Inc (ISE), one of the worlds leading electronic options exchanges, where he lead ISEs successful public offering in 2005. The directors of CI Financial Corp. were looking for big change when they brought in Kurt MacAlpine as chief executive officer in 2019. 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. So if the opportunity presents itself, it's financially attractive accretive and a great opportunity to diversify and transform the business we'll look. We don't break out the specific numbers. Would those be. CI Financial Corp. (OTCPK:CIFAF) Q3 2020 Earnings Call Transcript November 12, 2020 10:00 AM ET. 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. It is a profitable business on a stand-alone basis. 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. And it really depends upon the quality of platforms that are coming to market, and then how fast or slow those processes ultimately move. 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. So, it is not panning the majority or a meaningful portion of that number. Copyright 2023 Surperformance. If you fast forward to today just looking at the deals, we've done over the past six or seven months, we believe we have the fastest-growing RIA platform ever. Mr. MacAlpine was appointed Chief Executive Officer and Director of CI Financial in September 2019. Thank you for the question. 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. 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. Core average assets under management, which represent the assets managed by CI in Canada, and GSFM in Australia were up 5% in the quarter to $126.4 billion. 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. 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. Thanks very much. Mr. MacAlpine was appointed Chief Executive Officer and Director of CI Financial in September 2019. All rights reserved. So Tom, we don't typically break out the margin. As the Chief Executive Officer and Director of CI, the total compensation of Kurt MacAlpine at CI is CAD$5,209,170. There are no executives at CI getting paid more. Wallmine is a radically better financial terminal. And on day one everything is -- everything that you do is what we do. His diverse experience spans asset allocation, portfolio construction, risk management, public and private markets, and fundamental and quantitative strategies. And then from there you'd have to determine, obviously, what percentage do you think ultimately will move. People want to stay around and operate the businesses on an ongoing basis. He holds a PhD in theoretical physics from Pierre and Marie Curie University (now Sorbonne University), and an M.Sc. Is that a priority? And we have announced 12 deals in the marketplace than it was several months ago when we were starting to build story and build that momentum from scratch. 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. Just following on that maybe on that $2.50 billion to $3 billion institutional that you mentioned earlier. Because every -- the one thing is we see a lot of businesses as you could imagine given the number of transactions we've done, every single firm that we come across, I guarantee does something better than every other firm. These instruments preserve capital, offer stable income and protect against volatility. 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. 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. I am optimistic that we're going to work through the redemptions and put ourselves on a better path forward. As for its expansion, it appears CI has no plans to slow down. So take Harbour as an example. One would be capability expansions. 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. If you rewind to January this isn't even a segment or a market that we were in. The asset management we do look at things opportunistically, but it really has to fit what we're building on the integrated asset and wealth management side. 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. 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. So any M&A that you would see us doing would be in one of those two areas aligned against the three strategic priorities that we had outlined. Just maybe one last one if I could. That's great. Yes. And then just on the RIA acquisition pipeline like how would you describe the size of it today? And this is CI's third best quarterly earnings per share number, since converting back to a corporation a decade ago. For the best Barrons.com experience, please update to a modern browser. TORONTO (August 6, 2019) The Board of Directors of CI Financial Corp. (CI) (TSX:CIX), a diversified asset and wealth management company, today announced the appointment of Kurt MacAlpine as Chief Executive Officer and a Director of the corporation, effective September 1, 2019. If you experience any issues with this process, please contact us for further assistance. I announced on our Q1 earnings call in May that we were planning a corporate rebranding aimed at streamlining and simplifying our business removing unnecessary complexity and making it easier for our clients to do business with us. It has informed our digital marketing campaigns, all of our e-mail campaigns that we're doing today are based off of insights that we're receiving from that model. Kurt Macalpine . The next question will come from Tom MacKinnon with BMO Capital. TORONTO (August 6, 2019) The Board of Directors of CI Financial Corp. (CI) (TSX:CIX), a diversified asset and wealth management company, today announced 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. 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. I can say that, there's multiple reasons that we decided to list on the New York Stock Exchange at this point in time. 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. So if we're not additive to the process on the client front, we're not interested. 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. Thanks. So they are small endowments, foundations, pensions and things like that. Please go ahead. 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. And if you're not like what would be the reasons why you're not completing them? 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. 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