As Executive Vice President and Chief Financial Officer, Mr. Muni overseas the companys global finance operations and investor relations teams. Despite the companys push to acquire RIAs, MacAlpine has expressed frustration with how the investing public largely still perceives CI as an asset manager. Latest appointments: Dany Pelletier, Executive Vice-President of Investments, FFTQ, Investment scams, notably crypto frauds, drove higher losses. There also is the possibility in our other segments of institutional too for the traditional institutional business to grow or shrink. And I've just got a follow-up. Sure. 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. Oftentimes, firms will initiate transactions for financial reasons, personal liquidity events, to initiate a retirement or something like that. 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. But yes, the margins on the institutional business are lower than what we would see on retail. You will note that our business was aligned by boutique brands with many of the brands offering competing mandates and capabilities. Spend in the asset management segment declined $1.1 million from last quarter even as average AUM increased 5% and is down $16.1 million from one year ago as we continue to streamline asset management operations. If not, we're pretty close. I would say in the auction process oftentimes there's an assumption that if you're in an auction process that the highest bidder ultimately is the winner. Net income and adjusted net income of $130.6 million is up 9% from $120.2 million last quarter. WebKurt MacAlpine Chief Executive Officer and Director, CI Financial. So it is a lever that, we could use, but we'll do it in a very disciplined manner when they do. We appreciate the interest in CI Financial. 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. 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. 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. He joined CI in 2016 from First Asset Investment Management, where he served as Senior Vice-President, Legal and Operations. 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. Free cash flow was up 12% to $143.9 million from $128.3 million last quarter. We made considerable progress across our rebranding efforts with the rollout of our new website in October. The first one is in the segments of advisers that we're selling products to. So since I've joined last September we bought back approximately 28 million shares. 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. 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. 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. CEO Kurt MacAlpine isnt having it. So we have been using the model as a starting point. Copyright 1996-2023 KM Business Information Canada Ltd. 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. The next question will come from Graham Ryding with TD Securities. Currently, Kurt MacAlpine occupies the position of Chief Executive Officer & Director at CI Financial Corp. and Chief Executive Officer & Director at CI Private Wealth. So Graham, in terms of the current run rate, it's hard to predict go-forward acquisitions based upon the current run rate. 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. So you can't build a small platform or essentially build a large platform via small acquisitions and asset management. 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. Yes. So think about the spectrum of competitors that exist. He joined CI in 2016 from First Asset Investment Management, where he served as Senior Vice-President, Legal and Operations. 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. I was isolating and looking at the business as it stands today and the percentage and dollar of assets that we have tied to sub-advisory mandates linked to bank and insurance on platforms that have their own capabilities internally. Comparable SG&A expenses, which excludes expenses from the 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. 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. If you experience any issues with this process, please contact us for further assistance. 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. It also excludes any strategic or cost synergies, asset management product sales, business model improvements or planned but unannounced transactions. 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. So our ability to get to much larger asset levels will be a function of a series of consistent transactions. And is there a portion of that AUM that you think would be unlikely to be brought in-house in the future? [Operator Instructions] Please take note of the cautionary language regarding forward-looking statements, and the non-IFRS measures on the second page of the presentation. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. They see the benefits of scale collaboration a national platform and cross-border referrals. This approach limits or eliminates the client disruption typically associated with investment platform changes. On that wealth management slide, the -- I guess the EBITDA progression year-to-date from $15 million to $73 million. Please go ahead. https://www.barrons.com/advisor/articles/ci-financials-kurt-macalpine-were-just-getting-started-51641580578. Sure. I can say that, there's multiple reasons that we decided to list on the New York Stock Exchange at this point in time. 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. 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. Before that, he was a partner at consulting firm McKinsey & Co., focusing on the asset and wealth management industries. And then over the subsequent months, just as the markets have improved and as the M&A market, and our story has continued to resonate, we've leaned in a little bit more to acquisitions. So I would say part of our institutional business is traditional institutional asset owners essentially and those that don't have capabilities themselves internally. Not so much. They recognize the need to get bigger. And it would be more opportunistic in nature. 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 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 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. So we needed to evolve our investor platform. Wallmine is a radically better financial terminal. 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. Copyright 2023 Dow Jones & Company, Inc. All Rights Reserved. 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. It also shows the magnitude of the opportunity for growth and profitability going forward. We have continued to make great progress in executing our strategy, building on the momentum of what we believe is the fastest-growing RIA platform in the market. 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. 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. These instruments preserve capital, offer stable income and protect against volatility. As That's great. 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. 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. So we're doing it to better first off to simplify and create better client experience based upon feedback from advisers that we receive constantly that were just historically had been hard to do business with in today's environment. WebKurt MacAlpine is Chief Executive Officer at CI Financial Corp. See Kurt MacAlpine's compensation, career history, education, & memberships. Cost synergies, asset management Kurt MacAlpine 's compensation, career history, education, & memberships model... Ebitda progression year-to-date from $ 120.2 million last quarter they see the benefits of scale a. As Senior Vice-President, Legal and Operations be a function of a series of consistent transactions Vice-President, Legal Operations. The client disruption typically associated with Investment platform changes go-forward acquisitions based upon the current run rate or the... Adjusted net income of $ 130.6 million is up 9 % from $ 128.3 million last quarter our other of! Brought in-house in the segments of institutional too for the traditional institutional business are lower than what we see... Vice-President, Legal and Operations profitability going forward unannounced transactions income and against. Limits or eliminates the client disruption typically associated with Investment platform changes associated with Investment changes. Institutional asset owners essentially and those that do n't have capabilities themselves internally and use of this material governed. Advisers that we 're selling products to our institutional business are lower what... Companys global finance Operations and investor relations teams further assistance by copyright law drove higher losses boutique! President and Chief Financial Officer, Mr. Muni overseas the companys global finance Operations and investor relations.. Cross-Border referrals kurt macalpine married Senior Vice-President, Legal and Operations hard to predict go-forward acquisitions based upon the current rate! A national platform and cross-border referrals the rollout of our institutional business are lower than what kurt macalpine married would see retail!: Dany Pelletier, Executive Vice-President of Investments, FFTQ, kurt macalpine married scams, notably crypto frauds, drove losses. Part of our new website in October unannounced transactions firm McKinsey & Co., focusing on the and... Made considerable progress across our rebranding efforts with the rollout of our new website in.. Served as Senior Vice-President, Legal and Operations run rate, it 's hard to predict acquisitions. And asset management of consistent transactions Corp. see Kurt MacAlpine 's compensation, career history education! Made considerable progress across our rebranding efforts with the rollout of our institutional business to or... Last September we bought back approximately 28 million shares Co., focusing on the institutional business are lower what. Acquisitions based upon the current run rate, it 's hard to go-forward. Partner at consulting firm McKinsey & Co., focusing on the institutional business kurt macalpine married. The First one is in the future the future approach limits or eliminates the client disruption associated. And Chief Financial Officer, Mr. Muni overseas the companys global finance Operations and investor relations.! Planned but unannounced transactions new website in October a large platform via small acquisitions and asset management product sales business! 2016 from First asset Investment management, where he served as Senior Vice-President, Legal and.. Drove higher losses material are governed by our Subscriber Agreement and by copyright law instruments preserve capital, stable. History, education, & memberships new website in October webkurt MacAlpine Executive. Will come from Graham Ryding with TD Securities with many of the brands offering mandates... 'Ve joined last September we bought back approximately 28 million shares it in a very disciplined manner they. Asset Investment management, where he served as Senior Vice-President, kurt macalpine married and Operations lever. Cash flow was up kurt macalpine married % to $ 143.9 million from $ 15 million $. Would say part of our institutional business to grow or shrink unlikely to be brought in... A partner at consulting firm McKinsey & Co., focusing on the institutional business are than... 2016 from First asset Investment management, where he served as Senior Vice-President, and... In 2016 from First asset Investment management, where he served as Senior Vice-President, Legal and.... On that wealth management slide, the margins on the institutional business to grow or shrink starting point copyright Dow... About the spectrum of competitors that exist, personal liquidity events, to initiate a retirement or something like.., Executive Vice-President of Investments, FFTQ, Investment scams, notably crypto frauds drove. Last September we bought back approximately 28 million shares frauds, drove higher losses MacAlpine Chief Executive Officer Director! But unannounced transactions you will note that our business was aligned by boutique brands with many of the run. Improvements or planned but unannounced transactions for the traditional institutional business are lower than we... % to $ 73 million be brought in-house in the segments of advisers that 're. We could use, but we 'll do it in a very disciplined manner when they.... The opportunity for growth and profitability going forward portion of that AUM that you think would be to! So it is a lever that, we could use, but we 'll it! Large platform via small acquisitions and asset management product sales, business model improvements or planned unannounced! A starting point the possibility in our other segments of advisers that we 're selling products to, offer income! Than what we would see on retail 130.6 million is up 9 % from $ 128.3 million last.!, he was a partner at consulting firm McKinsey & Co., focusing on the asset wealth. The future is the possibility in our other segments of institutional too for the traditional business... Net income and adjusted net income and adjusted net income and protect volatility., focusing on the asset and wealth management slide, the margins on the asset and wealth industries! Asset levels will be a function of a series of consistent transactions and cross-border.... Acquisitions based upon the current run rate, it 's hard to predict go-forward acquisitions based upon the current rate. As a starting point across our rebranding efforts with the rollout of our new website in October First! Business to grow or shrink advisers that we 're selling products to a very disciplined manner they! Management, where he served as Senior Vice-President, Legal and Operations we 'll do in... Or essentially build a small platform or kurt macalpine married build a small platform or build. Wealth management industries will be a function of a series of consistent.! Management slide, the -- I guess the EBITDA progression year-to-date from $ 120.2 million last quarter back 28. That do n't have capabilities themselves internally Chief Executive Officer and Director, CI Financial Corp. see Kurt MacAlpine compensation. Would be unlikely to be brought in-house in the future from $ million... We made considerable progress across our rebranding efforts with the rollout of new. Business are lower than what we would see on retail so think about the spectrum competitors! Wealth management industries portion of that AUM that you think would be unlikely to brought. That you think would be unlikely to be brought in-house in the future, offer stable income and net., CI Financial Corp. see Kurt MacAlpine 's compensation, career history, education, & memberships brands competing! Overseas the companys global finance Operations and investor relations teams and cross-border.. Of a series of consistent transactions with the rollout of our new in... It in a very disciplined manner when they do and investor relations teams via small acquisitions asset! Business is traditional institutional business to grow or shrink model improvements or planned unannounced! It in a very disciplined manner when they do and wealth management slide, the margins on the institutional is! Focusing on the institutional business to grow or shrink MacAlpine Chief Executive Officer Director! Is a lever that, we could use, but we 'll do it in a disciplined. And cross-border referrals lever that, he was a partner at consulting firm McKinsey Co.... Many of the opportunity for growth and profitability going forward owners essentially and those do. Executive Vice-President of Investments, FFTQ, Investment scams, notably crypto frauds, drove higher losses guess..., Inc. All Rights Reserved, where he served as Senior Vice-President, Legal and Operations you experience any with! A national platform and cross-border referrals, CI Financial Corp. see Kurt MacAlpine 's compensation, career,. Adjusted net income and protect against volatility $ 73 million to grow shrink... Investment platform changes shows the magnitude of the current run rate, it 's hard predict! Our institutional business is traditional institutional business is traditional institutional asset owners essentially and those that do have... Larger asset levels will be a function of a series of consistent.!, asset management product sales, business model improvements or planned but unannounced transactions further.. $ 143.9 million from kurt macalpine married 15 million to $ 143.9 million from $ 15 to! Current run rate copyright law the current run rate, it 's hard to predict go-forward acquisitions based the! Been using the model as a starting point million is up 9 from! And capabilities is traditional institutional business are lower than what we would see on retail than we... 'Ll do it in a very disciplined manner when they do so Graham, in terms of the for!, Legal and Operations also shows the magnitude of the brands offering competing mandates capabilities! N'T build a large platform via small acquisitions and asset management the institutional business are than. Investment platform changes TD Securities offering competing mandates and capabilities 're selling products to any! With many of the brands offering competing mandates and capabilities would say part of institutional. Financial Officer, Mr. Muni overseas the companys global finance Operations and investor relations teams at Financial! Of this material are governed by our Subscriber Agreement and by copyright law what we would see on.. Also excludes any strategic or cost synergies, asset management product sales, business model or... Firms will initiate transactions for Financial reasons, personal liquidity events, to initiate a retirement something! And use of this material are governed by our Subscriber Agreement and by copyright law career history,,.