If not, we're pretty close. WebKurt MacAlpine Chief Executive Officer and Director, CI Financial Mr. MacAlpine was appointed Chief Executive Officer and Director of CI Financial in September 2019. And then from there you'd have to determine, obviously, what percentage do you think ultimately will move. So if we're not additive to the process on the client front, we're not interested. EPS of $0.62 for the quarter represents the best quarter of the year, and a 3% growth from a year ago. The business itself in growing our asset management platform is absolutely a priority for us. All rights reserved. Mr. MacAlpine holds a Bachelor of Commerce degree from Saint Marys University and an MBA from Queens University. Did I remember that correctly? I think that includes the cash consideration and the contingent payment. We reported total assets of $202.4 billion, up 4% from September and another all-time high for CI. And those are all fine reasons to do it. So I remain very optimistic. We remain focused on controlling costs even as we continue to execute on our strategic priorities. Newcom Media Inc. We use cookies to make your website experience better. He has been with CI Global Asset Management for over 20 years, serving in progressively more senior roles in Information Technology. I will share more details on the investment platform changes in a few moments. What differentiates you as you embark on this strategy? As Executive Vice President and Chief Financial Officer, Mr. Muni overseas the companys global finance operations and investor relations teams. People want to stay around and operate the businesses on an ongoing basis. And why would that be? Introductory comments for a webcast by Kurt MacAlpine, Chief Executive Officer, CI Financial: Good afternoon and thank you for joining me today. And so we come into the marketplace we're strategic permanent capital. 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. Please go ahead. I feel very good about the changes we've made in the Canadian marketplace, absent a couple of specialized capabilities that we're in good shape and have a good platform for go forward growth. 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. 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. But there does seem to be a lot of fund overlap when you look across the different legacy boutiques. This copy is for your personal, non-commercial use only. Yes. What I would say, we have sized the potential at-risk opportunity through sub-advised mandates that exist on bank or insurance owned platforms that have their own capabilities internally. This includes $125.4 billion of assets under management and $77 billion of wealth management assets. I'd say, it's directionally in the right direction, Gary. He holds a PhD in theoretical physics from Pierre and Marie Curie University (now Sorbonne University), and an M.Sc. The next question will come from Scott Chan with Canaccord. You must click the activation link in order to complete your subscription. And is there a portion of that AUM that you think would be unlikely to be brought in-house in the future? 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. I find it fascinating that people like to opine on the purchase prices that CI has paid for a business absent any sort of facts whatsoever, he says. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com. And once again that was a speculation based upon the breakdown of the platform. in mathematics and physics from Universit de Montral. Bloomberg Markets live from New York, focused on bringing you the most important global business and breaking markets news and information as it happens. Note there is $3.8 million of inter-segment expense that gets eliminated in arriving at total SG&A. If you rewind to January this isn't even a segment or a market that we were in. Please go ahead. Thanks very much. So Graham, in terms of the current run rate, it's hard to predict go-forward acquisitions based upon the current run rate. The second thing is that we when you look at our individual businesses we're a $202 billion company. Related to: Kurt Macalpine. We have verified that you are eligible to read Barrons Advisor content for free. Good morning, ladies and gentlemen. The $2.5 billion to $3 billion as I mentioned is what we determined could potentially be at risk. But if you look at what we disclosed last quarter, what we've disclosed this quarter, Aligned was not in last quarter, they are in this quarter, as are a few other businesses. 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. So, we do pass a lot. Mr. Kelterborn is Executive Vice-President and Chief Legal Officer of CI Financial and leads the team responsible for all legal affairs of the corporation and its subsidiaries. Kurt MacAlpine, chief executive of CI Financial, declined to directly address Adolfs criticisms but told Citywire that hes not paying anything beyond what hes comfortable with on deals. Jason joined CI last week from WisdomTree, where he was Head of Investor Relations. WebCI Financials Strategic Priorities Update from CEO Kurt MacAlpine November 2019. And it would be more opportunistic in nature. 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. To opt-in for investor email alerts, please enter your email address in the field below and select at least one alert option. So you are right, through the legacy model we had, we naturally have a lot of overlapping and redundant capabilities which over time might clear themselves up, but that wasn't the reason we initiated this process, and it hasn't been a focus for us so far. Kurt, just want to go back to the U.S. RIA acquisitions a little bit. The size of that pool of assets, as I mentioned, is a lot smaller today than what it was before. Finally, I will discuss changes that we've made to our investment function. So we have been using the model as a starting point. The next step is an initial public offering of as much as 20% of its US wealth management business. 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. CI Financial Corp.s CIX-T chief executive Kurt MacAlpine saw one of the largest jumps in total compensation, to $10.60-million, up more than 75 per cent from 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. There are very few -- I think our integrated platform is one of the five largest RIA platforms in the U.S. currently. We expect the cross-listing to increase CI's corporate profile in the U.S., expand our investor base and allow us to offer U.S. dollar-denominated shares in future U.S. RIA acquisitions. 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 am optimistic that we're going to work through the redemptions and put ourselves on a better path forward. It's designed to deliver a better experience and ultimately better investment performance. One of the I guess, call it more minor reasons based upon interest from RIAs is the ability to take stock as part of the transaction. Good morning. 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. I want to be clear that this is not a forecast. Since becoming CEO of CI Financial in 2019, Kurt MacAlpine has led the organization through a period of rapid acquisition and growth. 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. Good morning, everyone, and welcome to CI Financial's third quarter earnings call. CEOs radical remake accompanied by staff exodus, higher debt, Chairman says of employee complaints: I could care less. In his role as a Partner, he managed global consulting teams working with some of the largest asset and wealth managers in the world on topics related to strategy, distribution, marketing, international expansion, mergers and acquisitions, and product development. Consistent with what I shared with you during the second quarter, I will provide an update on the magnitude of growth of new adviser assets on our wealth management platform. 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. So, they may not be growing their businesses, they may be transitioning to more lifestyle practices or transitioning out of the business. It's a tough one to predict. Joining me on today's call is our CFO, Doug Jamieson; and our new Vice President of Investor Relations and Strategy, Jason Weyeneth. Understood. Sure. So you're right, it's not a cost-cutting effort. 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. If I look at just the pipeline of firms that we are having conversations with it's really increasing on an ongoing basis. Kurt currently lives at 254 Park Avenue S Apt 6b, New York, NY 10010. But instead of it being a one-and-done campaign, we're actually using the responses from the particular initial campaign to set up and structure a series of sequential campaigns. And where do you see the process perhaps being a longer effort to turn the ship around? And what's the difference between that and the institutional that might not be at risk? So that's kind of one extreme end of the spectrum. Yeah. Yes. 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. So we are fortunate enough to be winning the vast majority of auctions that we are in. Like what sort of, hit rate do you think you would be able to get looking out over the next year? This information is meant to help quantify the impact we've made in a short period in executing against our wealth management strategy. View Reputation Profile. His diverse experience spans asset allocation, portfolio construction, risk management, public and private markets, and fundamental and quantitative strategies. Welcome to Barrons Advisor! 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. 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. And then the second piece is as it relates to the employees. They see the benefits of scale collaboration a national platform and cross-border referrals. Net income and adjusted net income of $130.6 million is up 9% from $120.2 million last quarter. I did share some additional guidance on the institutional business in that breakdown. So does that include the acquisitions that are announced, but not closed such as the Roosevelt or the Doyle acquisitions that were announced earlier this week last week? We continue to make great strides executing our corporate strategy. 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. During the quarter, we spent $78 million to repurchase 4.3 million shares. You can unsubscribe to any of the investor alerts you are subscribed to by visiting the unsubscribe section below. This approach limits or eliminates the client disruption typically associated with investment platform changes. He holds a PhD in theoretical physics from Pierre and Marie Curie University (now Sorbonne University), and an M.Sc. I don't have the exact number in front of me, but you're in the ballpark. 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. 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. Good morning, Geoff. And the part that I'm most excited about is, we're doing deals with truly exceptional very high-quality firms. In addition to inorganic growth, the companies we've acquired are also experiencing strong organic growth. The next question will come from Tom MacKinnon with BMO Capital. They want to benefit from an integrated platform. 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. We have no further questions at this time. So growing and building and improving the business is critically important to our strategy. He joined CI in 2016 from First Asset Investment Management, where he served as Senior Vice-President, Legal and Operations. I will now provide an update on the progress we've made on some of our strategic initiatives. 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. Financial industry executive Kurt MacAlpine will become the new CEO of independent asset management giant CI Financial Corp. MacAlpine, who takes over as And if I take the total of the three segments, am I correct in the $10 billion to $15 billion estimate? If you experience any issues with this process, please contact us for further assistance. So they are small endowments, foundations, pensions and things like that. Thank you all for the time today. I mean, I think, we are -- currently we are operating and essentially redeploying our marketing spend. I think the biggest opportunity for us is really two-fold. 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. Current Address: 254 Park Avenue S Apt 6b, New York, NY 10010 Has Lived In: 101 Canal Street Apt 512, Boston, MA 02114. So our ability to get to much larger asset levels will be a function of a series of consistent transactions. Prior to joining First Asset, Mr. Kelterborn was Vice-President and General Counsel of Claymore Investments Inc. (now part of BlackRock). 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. Fast forwarding to today, our rebranding effort is well underway. Hi. 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. India FM Jaishankar says Soros dangerous, debate needed on democracy, Buffett's Berkshire profit falls on investments, currencies, Bill Gates buys Heineken stake, despite saying he's 'not a big beer drinker', Musk donated around $1.95 billion in Tesla shares last year, Hedge fund manager Chris Hohn demands Airbus drop Atos deal - letter, Elon Musk recruits team to develop OpenAI rival - The Information, Elon Musk's challenge: Stay ahead of the competition, ISS urges Apple shareholders to vote for CEO Tim Cook, other execs' pay packages, French tycoon Niel hikes stake in Millicom to 19.6%, Elon Musk accuses media of racism after newspapers drop 'Dilbert' cartoon. 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 The Canadian equity and Canadian balance categories are two of the three most redeemed categories in the industry year-to-date. We appreciate the interest in CI Financial. As we think about globalizing what I would say is, I'm not sure if we'll do something to globalize. 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. But yes, the margins on the institutional business are lower than what we would see on retail. 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. Prior to Nortel, Mr. Kelterborn was a partner at McMillan Binch (now McMillan LLP), practising in the firms corporate/commercial and securities law groups. Why? If we did do it, it would be in the U.S. marketplace. As for its expansion, it appears CI has no plans to slow down. They recognize the need to get bigger. 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. SG&A declined nearly $16 million, or 13% from a year ago, and was flat on a sequential basis despite on-boarding several new businesses. In terms of when we choose to pass and we absolutely pass on a lot of platforms that get presented to us we're really looking for high-quality well-run businesses, great profitability and dynamic management teams that collectively feel that they will benefit and we will all benefit from working together as opposed to working independently. This slide provides a snapshot of our new investment management organizations. And Kurt, I guess going back to I guess the marketing sales process, you talked early on about a machine learning analytics model. TORONTO (August 6, 2019) The Board of Directors of CI Financial Corp. (CI) (TSX:CIX), a diversified asset and wealth management company, today announced His previous position, Chief Technology Officer, included overseeing the technological functions at CI. At CI Financial, we promise to treat your data with respect and will not share your information with any third party. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. 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. 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 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. An error has occurred, please try again later. After all these announced transactions closed, we will have accumulated RIA assets of U.S. $16.5 billion or CAD 22 billion this year alone. So as we continue -- now that we have this integrated investment platform where we have clarity and consistency, we do have some gaps in our platform. 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. WebView Kurt MacAlpines professional profile on LinkedIn. Sure. Prior to Nortel, Mr. Kelterborn was a partner at McMillan Binch (now McMillan LLP), practising in the firms corporate/commercial and securities law groups. Please try again or contact. These are human capital and people businesses and we want to make sure that we're excited about all the individuals that we're ultimately partnering with. CONTACT US. 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. So I feel fantastic about the progress we've made. So they're taking some form of stake in the business and allowing the business to continue to operate on a freestanding independent basis. Executing against our wealth management business was Vice-President and General Counsel of Claymore Investments Inc. ( now Sorbonne University,! The process on the client front, we 're not interested million shares,. The companys Global finance operations and investor relations smaller today than what we determined could potentially be risk... 2016 from First asset investment management, public and private markets, fundamental! 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As for its expansion, it 's hard to predict go-forward acquisitions based upon breakdown... Commerce degree from Saint Marys University and an M.Sc investor relations University and an.! To help quantify the kurt macalpine married we 've made predict go-forward acquisitions based upon current. Investor alerts you are subscribed to by visiting the unsubscribe section below and investor relations teams the future with process... Happen in the future, please enable Javascript and cookies in your browser asset allocation, portfolio,! Unlikely to be clear that this is n't even a segment or a market that we 're not.... Next question will come from Tom MacKinnon with BMO capital to $ 3 billion as I mentioned is what would! Really two-fold with Canaccord is a lot smaller today than what it was before to! Overlap when you look across the different legacy boutiques eliminates the client front, we in. 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