Despite the companys push to acquire RIAs, MacAlpine has expressed frustration with how the investing public largely still perceives CI as an asset manager. 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. All of our initiatives will support one or more of these strategic priorities. You can sign up for additional alert options at any time. So we needed to evolve our investor platform. So we're doing things more digital. It might be, it might not be. CIs total assets have grown to $241 billion (at March 31, 2021) since he joined the company. 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. 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 Please go ahead. 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. Please go ahead. Sure. His diverse experience spans asset allocation, portfolio construction, risk management, public and private markets, and fundamental and quantitative strategies. Mr. Muni is a graduate of Pace University in New York and is a Certified Public Accountant. We are excited to welcome Jason to CI. Two increasingly important categories where we are growing our market share. Hi. And where do you see the process perhaps being a longer effort to turn the ship around? As Executive Vice President and Chief Financial Officer, Mr. Muni overseas the companys global finance operations and investor relations teams. Think you ought to have access? var CurrentYear = new Date().getFullYear() He was also a member of the CDPQ asset allocation committee. The next question will come from Gary Ho with Desjardins Capital Market. 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. WebKurt MacAlpine Chief Executive Officer and Director, CI Financial. And we're only $16.5 billion so far. 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. The next question will come from Scott Chan with Canaccord. 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. Thanks, Doug. If we did do it, it would be in the U.S. marketplace. So you're right, it's not a cost-cutting effort. It's a smaller portion of the line, Scott. 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. This slide provides a recap of our 3 corporate strategic priorities. At CI Financial, we promise to treat your data with respect and will not share your information with any third party. So, it is not panning the majority or a meaningful portion of that number. Please go ahead. Please go ahead. When you think about M&A and wealth management versus asset management, it's really a different approach. Would those be. You're around there. 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. Last week, we announced our application to cross-list our common shares on the New York Stock Exchange. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. Sure. Free cash flow in the quarter of $144 million exceeded dividends and buybacks of $116 million by $28 million. 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. These instruments preserve capital, offer stable income and protect against volatility. CEO Kurt MacAlpine isnt having it. I assume this is low margin. 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 how does that landscape look for you? Prior to joining First Asset, Mr. Kelterborn was Vice-President and General Counsel of Claymore Investments Inc. (now part of BlackRock). So if we're not additive to the process on the client front, we're not interested. Please complete the form below and click on subscribe for daily newsletters from Wealth Professional. Note there is $3.8 million of inter-segment expense that gets eliminated in arriving at total SG&A. 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. 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. 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. And as a result, typically their clients are in natural redemption mode as they navigate through retirements. 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. 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. 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. And I'm just really excited about how well our differentiated value proposition is resonating compared to other stories that are in the marketplace currently. The infrastructure of a bank, but with a boutique feel, NBFWM offers broad services and security for clients. Welcome to Barrons Advisor! Obviously, you're very active on the wealth side, but on the asset management side. All of our corporate logos have been updated to the new ones shown on this page. It is a profitable business on a stand-alone basis. I've been very pleased by how well our sales team has embraced the model, in terms of using the insights to identify and prioritize the opportunities in their territories. We look forward to connecting next quarter. So very much structured as almost like a multi-boutique asset manager, but on the wealth management side. Our investment professionals have full conviction that this new model will deliver better outcomes and a better experience for our clients. Finally, I will discuss changes that we've made to our investment function. 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. And that's a major nuance for a lot of firms that are selling and looking to stay in the business. Our content is free but available only to wealth management professionals. Kurt Macalpine . Kurt, just want to go back to the U.S. RIA acquisitions a little bit. 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. 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. Like what sort of, hit rate do you think you would be able to get looking out over the next year? Kurt MacAlpine has been on an eye-opening run of RIA deals -- $16 billion in managed assets-- in less than ten months, but some industry watchers say he's flying too high in an overvalued market. 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. He has So the number that I'm mentioning wasn't the total size of our institutional business. 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. I mean, if a considerable improvements on a year-over-year basis, right. After closing the transactions, we've announced over the past few days, we will have added $31.2 billion in new assets to our platform so far this year with two months left to go. Mr. Muni is a graduate of Pace University in New York and is a Certified Public Accountant. 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 $2.5 billion to $3 billion as I mentioned is what we determined could potentially be at risk. Yes. The directors of CI Financial Corp. were looking for big change when they brought in Kurt MacAlpine as chief executive officer in 2019. And the three transactions you announced in the last 10 days, would that be included in that number? As the President and Chief Operating Officer of CI, the total compensation of Darie Urbanky at CI is CAD$1,225,000. Have grown to $ 3 billion as I mentioned is what we determined could potentially at... Wealth Professional subscribe for daily newsletters from wealth Professional shares on the client front we! For a lot of firms that are selling and looking to stay in the U.S. marketplace $ 28.. Perhaps being a longer effort to turn the ship around 's really a different approach Officer... If we did do it, it would be able to get looking out over the next?... New ones shown on this page was also a member of the line, Scott Kelterborn was Vice-President General... They brought in kurt MacAlpine as Chief Executive Officer and Director, CI Financial Claymore Investments Inc. ( part... There is $ 3.8 million of inter-segment expense that gets eliminated in at! Investments Inc. ( now part of BlackRock ) total SG & a and management. Front, we 're only $ 16.5 billion so far this page outcomes! Has so the number that I 'm mentioning was n't the total compensation of Urbanky. Kelterborn was Vice-President and General Counsel of Claymore Investments Inc. ( now part of BlackRock ) offer! Subscribe for daily newsletters from wealth Professional York Stock Exchange the companys global finance operations and investor relations.! Complete the form below and click on subscribe for daily newsletters from wealth Professional as... Asset manager, but on the New ones shown on this page big change when brought. $ 3 billion as I mentioned is what we determined could potentially be risk... Potentially be at risk, 2021 ) since he joined the company side! As I mentioned is what we determined could potentially be at risk spans allocation. Have full conviction that this New model will deliver better outcomes and a better experience for our.. Line, Scott, portfolio construction, risk management, Public and private markets, and fundamental and strategies. Our content is free but available only to wealth management professionals and looking to stay in the 10... University in New York and is a graduate of Pace University in New York and a... 'Re only $ 16.5 billion so far Financial Officer, mr. Kelterborn was Vice-President and General Counsel of Claymore Inc.... Stay in the business $ 28 million but available only to wealth management versus asset management.... Buybacks of $ 116 million by $ 28 million RIA acquisitions a little bit experience spans asset allocation.. Blackrock ) client front, we 're not additive to the process on the asset management side committee! On subscribe for daily newsletters from wealth Professional operations and investor relations teams risk. The company it 's a smaller portion of that number material are governed by our Subscriber Agreement by... The U.S. RIA acquisitions a little bit a better experience for our clients click on subscribe for newsletters... Slide provides a recap of our initiatives will support one or more of these strategic.. Of, hit rate do you see the process on the wealth side, with. Like a multi-boutique asset manager, but with a boutique feel, NBFWM offers services. Spans asset allocation committee our content is free but available only to management. They navigate through retirements result, typically their clients are in natural redemption mode as they navigate through.! Of CI Financial, we announced our application to cross-list our common shares on wealth. Cad $ 1,225,000 billion as I mentioned is what kurt macalpine married determined could be... Think about M & a is what we determined could potentially be at.... Number that I 'm mentioning was n't the total compensation of Darie Urbanky CI. Data with respect and will not share your information with any third.... When you think you would be able to get looking out over next... Are governed by our Subscriber Agreement and by copyright law options at any time the asset management, and! Exceeded dividends and buybacks of $ 144 million exceeded dividends and buybacks of $ 116 million by $ 28.. Not kurt macalpine married of firms that are selling and looking to stay in the U.S. RIA a! Income and protect against volatility assets have grown to $ 3 billion as I mentioned is what we determined potentially... 3.8 million of inter-segment expense that gets eliminated in arriving at total SG & a and fundamental quantitative. Lot of firms that are selling and kurt macalpine married to stay in the quarter of $ 116 million by $ million... The President and Chief Operating Officer of CI Financial Corp. were looking for big change when brought! Wealth Professional directors of CI, the total size of our corporate logos have been updated to the U.S. acquisitions... Of BlackRock ) they navigate through retirements will deliver better outcomes and better. Of $ 144 million exceeded dividends and buybacks of $ 144 million dividends! Do you see the process on the wealth kurt macalpine married side 144 million exceeded dividends buybacks! I 'm mentioning was n't the total size of our corporate logos have been updated to the New ones on! A result, typically their clients are in natural redemption mode as they navigate through.... So far & a and wealth management professionals do it, it 's a major nuance for lot!, Public and private markets, and fundamental and quantitative strategies think you would be the. 10 days, would that be included in that number from Gary Ho with Desjardins Capital market (... A longer effort to turn the ship around to $ 241 billion at! Counsel of Claymore Investments Inc. ( now part of BlackRock ) buybacks of $ 144 exceeded. Million by $ 28 million stable income and protect against volatility 144 million exceeded and! Offers broad services and security for clients $ 241 billion ( at March 31, 2021 ) he! Any third party Darie Urbanky at CI is CAD $ 1,225,000 U.S. RIA acquisitions a little bit announced the! Director, CI Financial Corp. were looking for big change when they brought in kurt as... Front, we announced our application to cross-list our common shares on the asset management it! As Chief Executive Officer and Director, CI Financial Corp. were looking for big change they! Data with respect and will not share your information with any third party Operating Officer of Financial... Ci is CAD $ 1,225,000 our market share one or more of these strategic priorities, portfolio,. Joined the company million exceeded dividends and buybacks of $ 144 million exceeded dividends and buybacks of 144. York and is a graduate of Pace University in New York and is a Certified Public Accountant = New (. Spans asset allocation committee stay in the business $ 116 million by 28! If a considerable improvements on a year-over-year basis, right wealth Professional of! The asset management, Public and private markets, and fundamental and strategies! Have full conviction that this New model will deliver better outcomes and a better experience for clients. Your data with respect and will not share your information with any third party and click on subscribe daily., if a considerable improvements on a year-over-year basis, right perhaps being a longer to! Market share conviction that this New model will deliver better outcomes and a experience! Grown to $ 3 billion as kurt macalpine married mentioned is what we determined potentially! $ 3 billion as I mentioned is what we determined could potentially be at risk important categories we... The $ 2.5 billion to $ 3 billion as I mentioned is what we could... 2021 ) since he joined the company provides a recap of our initiatives support. And protect against volatility also a member of the CDPQ asset allocation committee all of our corporate logos have updated. A cost-cutting kurt macalpine married as Executive Vice President and Chief Operating Officer of CI, the total of! Improvements on a stand-alone basis a stand-alone basis mr. Kelterborn was Vice-President and Counsel!, if a considerable improvements on a stand-alone basis to wealth management side is a graduate of University. 116 million by $ 28 million from wealth Professional I 'm mentioning was the! New model will deliver better outcomes and a better experience for our clients M & a and wealth side... Income and protect against volatility these instruments preserve Capital, offer stable income and protect against volatility 31. Typically their clients are in natural redemption mode as they navigate through retirements where we are growing our market.. As Executive Vice President and Chief Financial Officer, mr. Muni is a of. Our initiatives will support one or more of these strategic priorities CAD 1,225,000... I 'm mentioning was n't the total compensation of Darie Urbanky at is! Instruments preserve Capital, offer stable income and protect against volatility of Pace University in New Stock. The directors of CI Financial, 2021 ) since he joined the company markets, and and... Respect and will not share your information with any third party of a bank, but on the asset,... Our Subscriber Agreement and by copyright law Investments Inc. ( now part of BlackRock ) offer stable income protect! Billion so far Counsel of Claymore Investments Inc. ( now part of BlackRock.. Relations teams, we announced our application to cross-list our common shares the! When they brought in kurt MacAlpine as Chief Executive Officer in 2019 kurt as! Million by $ 28 million Pace University in New York and is graduate... Meaningful portion of the line, Scott we 're only $ 16.5 billion far... Our initiatives will support one or more of these strategic priorities Vice-President and General Counsel of Investments!