But what do you bring to the table that they don't? Just going back to the comment on the institutional AUM at risk $2.50 billion to $3 billion, I thought at one point that number or your institutional AUM was at $10 billion to $15 billion. Mr. MacAlpine you may begin. Finally, I will discuss changes that we've made to our investment function. If you experience any issues with this process, please contact us for further assistance. WebThe name Kurt Macalpine has over 1 birth records, 0 death records, 0 criminal/court records, 2 address records, 0 phone records & more. Yes. 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. Now Doug will review the financial results for the quarter. The next question will come from Graham Ryding with TD Securities. Mr. Muni is a graduate of Pace University in New York and is a Certified Public Accountant. The next step is an initial public offering of as much as 20% of its US wealth management business. It also shows the magnitude of the opportunity for growth and profitability going forward. Thanks. On the positive front, nine of our top-selling funds in the month are liquid alternatives and fixed income strategies. 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. 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. 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 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. During the quarter, we spent $78 million to repurchase 4.3 million shares. 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. Thanks very much. Fast forwarding to today, our rebranding effort is well underway. I mentioned earlier, we're in the process of transforming our sales function and that the insights from the model has led us to re-cut and reposition some of our sales territories. Please contact us at, We encountered an error. How to Geta Free Flight to Hong Kong in 500,000 Airline Ticket Giveaway, Apple Suppliers Are Racing to Exit China, AirPods Maker Says, Microsoft Expands Game Pass as Regulators Fret Over Activision Deal, Stocks Pare Drop as Traders Assess Data, Fedspeak: Markets Wrap, Cash Is Paying More Than Traditional Stock-Bond Portfolio. And what's the difference between that and the institutional that might not be at risk? Sure. It does. That is helpful. 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. 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. There's a scenario where all of it redeems and every scenario in between. 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. All of our initiatives will support one or more of these strategic priorities. So if we're not additive to the process on the client front, we're not interested. 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. Please try again or contact. So if the opportunity presents itself, it's financially attractive accretive and a great opportunity to diversify and transform the business we'll look. Please go ahead. We are making these changes while protecting the elements of our investment platform that make us unique. I am optimistic that we're going to work through the redemptions and put ourselves on a better path forward. 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. And once again that was a speculation based upon the breakdown of the platform. Okay. Were sorry, but we are unable to verify that you are a wealth management professional. CI GAM has been climbing the ladder in terms of ETF assets and now has the fifth most in Canada with $11.7 billion. View Reputation Profile. If you rewind to January this isn't even a segment or a market that we were in. 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. 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. 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 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. 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. On the sales front, although the company continues to be in redemptions, we generated strong gross sales results, which increased 23% from a year ago and 8% sequentially. At CI Financial, we promise to treat your data with respect and will not share your information with any third party. Hi. Why? Just maybe one last one if I could. 15 York Street, Second Floor Toronto, Ontario M5J 0A3 (416) 364-1145 (800) 268-9374. 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. 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. CI Financial, Corp. (CIXX) Q2 2021 Earnings Conference Call August 10, 2021 10:00 AM ETCompany ParticipantsKurt MacAlpine Chief Executive OfficerAmit We rolled out what we believe is Canada's first machine learning model or predictive algorithm for sales and marketing process in Canadian asset and wealth management. Before that, he was a partner at consulting firm McKinsey & Co., focusing on the asset and wealth management industries. We're essentially redesigning our website to really focusing on different areas. 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. 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. Yes. So what I would say is, we're listing ourselves on the New York Stock Exchange effective next week. And I think we're off to a really great start in Liquid Alternatives. 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. 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 it is a lever that, we could use, but we'll do it in a very disciplined manner when they do. Can you do this without issuing equity? 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. You will see that we are now organized by investment capability not by boutique or sub-brand. 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. Please go ahead. At CI Financial, we promise to treat your data with respect and will not share your information with any third party. 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. As [Operator Instructions] The first question will come from Geoff Kwan with RBC Capital Markets. Just following on that maybe on that $2.50 billion to $3 billion institutional that you mentioned earlier. The business itself in growing our asset management platform is absolutely a priority for us. You can unsubscribe to any of the investor alerts you are subscribed to by visiting the unsubscribe section below. 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. We appreciate the interest in CI Financial. MacAlpine, who hails from Saint John, NB, has a commerce degree from Halifaxs Saint Marys University and an MBA from Queens University. Like what sort of, hit rate do you think you would be able to get looking out over the next year? Congratulations! Is that a priority? The directors of CI Financial Corp. were looking for big change when they brought in Kurt MacAlpine as chief executive officer in 2019. 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. So, they may not be growing their businesses, they may be transitioning to more lifestyle practices or transitioning out of the business. 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. So that's kind of one extreme end of the spectrum. They want to benefit from an integrated platform. So if you think about, the nature of distribution at that point in time, the corporate class that we had some of the exclusive distribution partnerships business was coming to CI. The next question will come from Gary Ho with Desjardin Capital Markets. 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. That's great. In the process, its drawn the ire of rivals who say CI has overpaid to take elite firms off the market. 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. Financial industry executive Kurt MacAlpine will become the new CEO of independent asset management giant CI Financial Corp. MacAlpine, who takes over as Bloomberg Markets Americas. 3% growth from a year ago. So we needed to evolve our investor platform. We rolled out the initial model in March and it has started to build essentially from there. Sure. His diverse experience spans asset allocation, portfolio construction, risk management, public and private markets, and fundamental and quantitative strategies. And the three transactions you announced in the last 10 days, would that be included in that number? We are excited to welcome Jason to CI. You must click the activation link in order to complete your subscription. It just doesn't really fit in regards to what we're trying to build, which is ultimately the leading private wealth platform in the U.S. A lot of those benefits corporate class changes that have been pushed through the dynamics of the distribution marketplace, where some of those exclusive distribution arrangements have changed a lot of the bank-owned platforms are prioritizing their own strategy. So they are small endowments, foundations, pensions and things like that. Our daily newsletter is FREE and keeps you up-to-date with the world of wealth. Yes. 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. I would say our approach to capital allocation overall has been very dynamic. 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. And that's a major nuance for a lot of firms that are selling and looking to stay in the business. So sorry, Tom a little bit long-winded, but we really do kind of sit in the middle of these two kind of more extreme models. 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. There are very few -- I think our integrated platform is one of the five largest RIA platforms in the U.S. currently. He was also a member of the CDPQ asset allocation committee. After submitting your request, you will receive an activation email to the requested email address. So it depends, Gary on when you're having a conversation. Sure. In just two years, Toronto-based CI Financial has assembled, via acquisition, a $115 billion-asset independent RIA empire in the U.S. 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. I would say the vulnerabilities remain the vulnerabilities that we currently have. 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 ability for any boutique to deliver scale benefits was driven by the scale they had generated independently. 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. I also wanted to provide some additional information on our run rate wealth management profitability after the deals we've announced recently had closed. And if you're not like what would be the reasons why you're not completing them? Copyright 2023 Dow Jones & Company, Inc. All Rights Reserved. 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. Last week, we announced our application to cross-list our common shares on the New York Stock Exchange. You can sign up for additional alert options at any time. I had a good understanding of their particular businesses, their capabilities, their teams and their growth rate. 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. Yeah. As Executive Vice President and Chief Financial Officer, Mr. Muni overseas the companys global finance operations and investor relations teams. And it really depends upon the quality of platforms that are coming to market, and then how fast or slow those processes ultimately move. He also previously worked at PwC LLP, where he performed audit and business advisory services for multinational and mid-sized broker dealers. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. It is a profitable business on a stand-alone basis. So I remain very optimistic. 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. They recognize the need to get bigger. This includes $125.4 billion of assets under management and $77 billion of wealth management assets. The impact is a $58 million increase in our run rate wealth management EBITDA, which translates to $73 million annualized or 387% improvement from 2019. Executive Vice President and chief Financial officer, mr. Muni overseas the companys global finance operations and investor relations.... 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