SG&A in the wealth segment moved up slightly to $30.4 million even though incremental SG&A from RIAs acquired this year was more than $2.9 million in the quarter. 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. 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. Kurt MacAlpine, a Canadian with experience in management consulting and exchange-traded funds (ETFs), will take over CI on Sept. 1. He joined CI in 2016 from First Asset Investment Management, where he served as Senior Vice-President, Legal and Operations. Just looking at your leverage just over two times in your current free cash flow run rate, how are you feeling about sustaining this level of RIA acquisitions? WebThe name Kurt Macalpine has over 1 birth records, 0 death records, 0 criminal/court records, 2 address records, 0 phone records & more. In May, we shared with you the details of our rebranding initiative, which is aimed at more effectively communicating to the marketplace the breadth and depth of CI's capabilities and highlighting the firm as an integrated global asset and wealth management company. 100 University Avenue, Eighth Floor. Just following on that maybe on that $2.50 billion to $3 billion institutional that you mentioned earlier. So we had a working relationship. I think the vulnerabilities, so I'd say that's what I'm most excited about the pivot to IIROC in those particular categories. 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. Can you quantify how much of that comes from the line to get a sense on the U.S. RIA traction? Copyright 1996-2023 KM Business Information Canada Ltd. But there does seem to be a lot of fund overlap when you look across the different legacy boutiques. Addresses View Full Report. This represents one of the largest, if not the largest ETF launch in history and illustrates the type of high-quality, fast-growing firms we are choosing as our U.S. partners. I had a good understanding of their particular businesses, their capabilities, their teams and their growth rate. You will note that our business was aligned by boutique brands with many of the brands offering competing mandates and capabilities. 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. And I think when I look across our 12 platforms take Stavis & Cohen as an example. When I look at our institutional business overall what I'd say is there's probably, three different chunks of business. Can you do this without issuing equity? 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. I will share more details on the investment platform changes in a few moments. I mean, if a considerable improvements on a year-over-year basis, right. So I would say the focus so far has been wealth management clearly given the velocity of deals we've done in the RIA space. Please go ahead. And now we're at a fascinating place where I probably get a couple of firms reaching out every week directly bypassing a bank or a process just looking to do a deal with CI specifically. So I remain very optimistic. Kurt Macalpine, 62 Lives in Boston, MA. 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. It might be, it might not be. 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. 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. Despite the companys push to acquire RIAs, MacAlpine has expressed frustration with how the investing public largely still perceives CI as an asset manager. 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. And it would be more opportunistic in nature. And the three transactions you announced in the last 10 days, would that be included in that number? Financial industry executive Kurt MacAlpine will become the new CEO of independent asset management giant CI Financial Corp. MacAlpine, who takes over as CONTACT US. And they have a very unique approach which includes tax planning estate and retirement that's probably more advanced than the typical wealth management platform. 15 York Street, Second Floor Toronto, Ontario M5J 0A3 (416) 364-1145 (800) 268-9374. 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 As 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. But what do you bring to the table that they don't? 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. 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. 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. Just one follow-up. And there is a few firms that fit this mold and may be called serial aggregators or something like that. And I was just wondering, if you could provide an update or progress on that initiative. That's great. 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And so we come into the marketplace we're strategic permanent capital. Please try again or contact. So the ability to buy scale and wealth management given where we're focused, doesn't really exist. WebWhat is the salary of Darie Urbanky? The next question will come from Gary Ho with Desjardin Capital Markets. And we want to make sure that the individuals are excited about joining our platform, share our collective vision for creating something integrated differentiated unique and really working ourselves towards the path of being the most integrated platform out 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. I know it sounds like a minor distinction, but that is very different from us, doing an acquisition and saying, we're going to buy your business. The next question will come from Tom MacKinnon with BMO Capital. In the process, its drawn the ire of rivals who say CI has overpaid to take elite firms off the market. 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. During the quarter, we spent $78 million to repurchase 4.3 million shares. 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. So you will it is our intent to continue to show these two slides on an ongoing basis and you can really chart the journey that we're on. 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. Mr. MacAlpine holds a Bachelor of Commerce degree from Saint Marys University and an MBA from Queens University. 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. 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. During the height of the pandemic, we did feel the leverage was a little bit high relative to our comfort zone, and we reduced our credit revolver by $175 million in short order by redeploying. 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. Thank you. Hi. 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. We've been operators of wealth management businesses in Canada for decades. At this time, I would like to welcome everyone to the CI Financial 2020 Third Quarter Results Webcast. You must click the activation link in order to complete your subscription. The next step is an initial public offering of as much as 20% of its US wealth management business. Kurt currently lives at 254 Park Avenue S Apt 6b, New York, NY 10010. They recognize the need to get bigger. These instruments preserve capital, offer stable income and protect against volatility. 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. Congratulations! CIs total assets have grown to $241 billion (at March 31, 2021) since he joined the company. 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. Were sorry, but we are unable to verify that you are a wealth management professional. Fast forwarding to today, our rebranding effort is well underway. In just two years, Toronto-based CI Financial has assembled, via acquisition, a $115 billion-asset independent RIA empire in the U.S. For the best Barrons.com experience, please update to a modern browser. 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. Mr. MacAlpine was appointed Chief Executive Officer and Director of CI Financial in September 2019. Prior to joining First Asset, Mr. Kelterborn was Vice-President and General Counsel of Claymore Investments Inc. (now part of BlackRock). in mathematics and physics from Universit de Montral. Finally Cabana Group, one of our U.S. RIAs launched $1 billion lineup of target drawdown strategy ETFs in September. It also just to continue to reiterate wasn't planned redemptions. Live from New York, is focused on bringing you the most important global business and breaking markets news and information as it happens. So we needed to evolve our investor platform. I would now like to turn the call over to Mr. Kurt MacAlpine, CEO of CI Financial. But yes, the margins on the institutional business are lower than what we would see on retail. And where do you see the process perhaps being a longer effort to turn the ship around? I'd say, it's directionally in the right direction, Gary. CI And then the second piece is as it relates to the employees. The next question will come from Geoff Kwan with RBC Capital Markets. Please go ahead. We are in the early stages of the strategic transformation of our sales function and our investment platform and we are confident that these actions will lead to better flows. WebCI Financials Strategic Priorities Update from CEO Kurt MacAlpine November 2019. In particular, Kurt is familiar with using digital strategies to enhance efficiencies and build new services and businesses, a key plank in CIs strategic plans.. 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. 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. The directors of CI Financial Corp. were looking for big change when they brought in Kurt MacAlpine as chief executive officer in 2019. Thank you for the question. To the extent that, we can use our stock accretively to do these types of transactions, it is something we would consider using as part of the purchase price which would reduce our free cash flow obligations. An error has occurred, please try again later. I would now like to open up the call for questions. var CurrentYear = new Date().getFullYear() This slide provides a snapshot of our new investment management organizations. To read this article, please provide the information below so we can confirm that you work in the industry. But it is something that we're monitoring. Did I remember that correctly? 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. So Graham, in terms of the current run rate, it's hard to predict go-forward acquisitions based upon the current run rate. By providing your email address below, you are providing consent to CI Financial to send you the requested Investor Email Alert updates. It also excludes any strategic or cost synergies, asset management product sales, business model improvements or planned but unannounced transactions. 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. He was also a member of the CDPQ asset allocation committee. He has And that's a major nuance for a lot of firms that are selling and looking to stay in the business. You can unsubscribe to any of the investor alerts you are subscribed to by visiting the unsubscribe section below. So, there is a range of pricing within it. Thanks very much. WebKurt MacAlpine Chief Executive Officer and Director, CI Financial. On that wealth management slide, the -- I guess the EBITDA progression year-to-date from $15 million to $73 million. 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. Computershare Investor Services. At WisdomTree, MacAlpine was responsible for all client-facing functions and oversaw most of its international businesses. Thank you for the question. 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. They want to benefit from an integrated platform. Okay, great. 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. Prior to that, he held a variety of roles in the financial technology industry at companies such as DST Systems (now IFDS). 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. 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. 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 take Doyle Wealth Management, the greater Tampa Bay Area is one of the biggest hotbeds for Canadian retirees' period. At CI Financial, we promise to treat your data with respect and will not share your information with any third party. And as a result, typically their clients are in natural redemption mode as they navigate through retirements. 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