CI Financial
Corp. (“CI”) (TSX: CIX,
NYSE: CIXX) today reported preliminary assets under management as
at December 31, 2020 of $134.9 billion and wealth management assets
of $96.6 billion, for total assets of $231.5 billion.
CI’s wealth management assets and total assets grew by 91.3% and
27.1% year over year, respectively, reaching record highs.
“In December, we completed the acquisition of four U.S. wealth
management firms, adding approximately $12.3 billion in assets and
a presence in four large and vital markets,” said Kurt MacAlpine,
CI Chief Executive Officer.
“With these transactions, our U.S. wealth management assets
reached $29 billion and we continue to seek high-quality
acquisition candidates to continue to build scale in this business.
In the space of a year, we have made significant progress in
executing our strategy of globalizing the firm and expanding CI’s
wealth management platform.
“Also in December, we completed a successful US$700 million bond
issue and announced the early redemption of all of the outstanding
C$200 million principal amount of 2.775% debentures due November
25, 2021,” said Mr. MacAlpine. “I believe the strong demand for
this latest offering represents a vote of confidence in CI, our
strategy and the outlook for the company.”
CI’s assets under management increased by $2.0 billion or 1.5%
in the month of December and by $3.2 billion or 2.4% year over
year. Core average assets under management for the fourth quarter
were $126.2 billion, an increase of 1.3% over the third quarter of
2020. Core assets under management are those managed by CI’s
Canadian and Australian subsidiaries.
U.S. wealth
management assets, at $29.2 billion, increased by $12.6 billion or
75.9% in the month of December, mostly due to the previously
announced December 31, 2020 acquisition of four registered
investment advisor firms: RGT Wealth Advisors, LLC of Dallas, The
Roosevelt Investment Group, Inc. (now The Roosevelt Investment
Group, LLC) of New York City, Doyle Wealth Management, Inc. (now
Doyle Wealth Management, LLC) of St. Petersburg, Florida, and
Stavis & Cohen Financial LLC (now Stavis & Cohen Private
Wealth, LLC) of Houston. CI’s U.S. wealth management business also
includes its interests in Balasa Dinverno Foltz LLC, Bowling
Portfolio Management LLC, The Cabana Group, LLC, Congress Wealth
Management, LLC, One Capital Management, LLC, and Surevest LLC.
Year-over-year comparisons are not available given that CI acquired
its U.S. wealth management businesses in 2020.
Canadian wealth management assets grew to $67.4 billion, up $1.7
billion or 2.6% in December and up $16.9 billion or 33.5% for 2020.
Canadian wealth management assets include the assets of Assante
Wealth Management (Canada) Limited, Aligned Capital Partners Inc.,
CI Private Counsel LP, CI Direct Investing (WealthBar Financial
Services Inc.) and Virtual Brokers.
As a result, CI’s total wealth management assets increased by
$14.3 billion or 17.4% in the month of December and $46.1 billion
or 91.3% for the 12-month period.
CI also reported preliminary sales results for the fourth
quarter. CI’s Canadian retail business, excluding products closed
to new investors, had $1.3 billion in net redemptions, an
improvement of $0.2 billion over the third quarter and an increase
in redemptions of $0.8 billion compared to the fourth quarter of
2019. CI’s Canadian institutional business posted net redemptions
of $0.9 billion, an improvement of $0.2 billion over the third
quarter and an improvement of $0.5 billion from the same quarter a
year ago.
CI’s U.S.
asset management business, which consists of certain assets managed
by its U.S. RIAs, had net sales of $0.3 billion, while GSFM Pty
Ltd.’s net flows were flat. CI’s closed business, comprised
primarily of segregated fund contracts that are no longer available
for sale, had $0.2 billion in net redemptions for the
quarter.
Further information about CI’s assets and financial position can
be found below in the tables of statistics and on its website,
www.cifinancial.com. These are the only statistics authorized by
CI, and CI takes no responsibility for reporting by any external
sources.
CI FINANCIAL CORP.
December 31, 2020
PRELIMINARY MONTH-END
STATISTICS
ENDING ASSETS
Dec. 31/20
(billions)
Nov. 30/20
(billions)
%
Change
Dec. 31/19
(billions)
%
Change
Core (Canadian and Australian) assets
under management1
$129.4
$127.5
1.5%
$131.7
-1.7%
U.S. assets under management
$5.5
$5.4
1.9%
$-
n/a
Total assets under management
$134.9
$132.9
1.5%
$131.7
2.4%
Canadian wealth management
$67.4
$65.7
2.6%
$50.5
33.5%
U.S. wealth management
$29.2
$16.6
75.9%
$-
n/a
Total wealth management
$96.6
$82.3
17.4%
$50.5
91.3%
TOTAL
$231.5
$215.2
7.6%
$182.2
27.1%
MONTHLY CORE AVERAGE
ASSETS UNDER MANAGEMENT
Dec. 31/20
(billions)
Nov. 30/20
(billions)
%
Change
Monthly average
$128.5
$126.3
1.7%
FISCAL QUARTER CORE AVERAGE
ASSETS UNDER MANAGEMENT
Dec. 31/20
(billions)
Sept. 30/20
(billions)
%
Change
Fiscal quarter average
$126.2
$124.6
1.3%
FISCAL YEAR CORE AVERAGE
ASSETS UNDER MANAGEMENT
Fiscal 2020
(billions)
Fiscal 2019
(billions)
%
Change
Fiscal year average
$124.1
$129.8
-4.4%
EQUITY
(millions)
Total outstanding shares
(TSX)
210.9
QTD weighted avg. shares
209.3
FINANCIAL POSITION
(millions)
Gross debt
$2,466
Cash
$470
1 Includes $32.6 billion of assets managed by CI and held by
clients of advisors with Assante, CIPC and Aligned Capital as at
December 31, 2020 ($31.6 billion at November 30, 2020 and $29.0
billion at December 31, 2019).
All financial amounts in Canadian dollars unless stated
otherwise.
About CI Financial
CI Financial Corp. is an independent company offering global
asset management and wealth management advisory services. CI’s
primary asset management businesses are CI Global Asset Management
(CI Investments Inc.) and GSFM Pty Ltd., and it operates in
Canadian wealth management through Assante Wealth Management
(Canada) Ltd., CI Private Counsel LP, Aligned Capital Partners
Inc., CI Direct Investing (WealthBar Financial Services Inc.), and
CI Investment Services Inc.
CI’s U.S. wealth management businesses consist of Balasa
Dinverno Foltz LLC, Bowling Portfolio Management LLC, The Cabana
Group, LLC, Congress Wealth Management, LLC, Doyle Wealth
Management, LLC, One Capital Management, LLC, The Roosevelt
Investment Group, LLC, RGT Wealth Advisors, LLC, Stavis & Cohen
Private Wealth, LLC and Surevest LLC.
CI is listed on the Toronto Stock Exchange under CIX and on the
New York Stock Exchange under CIXX. Further information is
available at www.cifinancial.com.
This press release contains forward-looking statements
concerning anticipated future events, results, circumstances,
performance or expectations with respect to CI Financial Corp.
(“CI”) and its products and services, including its business
operations, strategy and financial performance and condition.
Forward-looking statements are typically identified by words such
as “believe,” “expect,” “foresee,” “forecast,” “anticipate,”
“intend,” “estimate,” “goal,” “plan” and “project” and similar
references to future periods, or conditional verbs such as “will,”
“may,” “should,” “could” or “would”. These statements are not
historical facts but instead represent management beliefs regarding
future events, many of which by their nature are inherently
uncertain and beyond management’s control. Although management
believes that the expectations reflected in such forward-looking
statements are based on reasonable assumptions, such statements
involve risks and uncertainties. The material factors and
assumptions applied in reaching the conclusions contained in these
forward-looking statements include that the investment fund
industry will remain stable and that interest rates will remain
relatively stable. Factors that could cause actual results to
differ materially from expectations include, among other things,
general economic and market conditions, including interest and
foreign exchange rates, global financial markets, changes in
government regulations or in tax laws, industry competition,
technological developments and other factors described or discussed
in CI’s disclosure materials filed with applicable securities
regulatory authorities from time to time. The foregoing list is not
exhaustive and the reader is cautioned to consider these and other
factors carefully and not to place undue reliance on forward-
looking statements. Other than as specifically required by
applicable law, CI undertakes no obligation to update or alter any
forward-looking statement after the date on which it is made,
whether to reflect new information, future events or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20210112006004/en/
Investor Relations Jason Weyeneth, CFA Vice-President,
Investor Relations & Strategy 416-681-8779 jweyeneth@ci.com
Media Relations Canada Murray Oxby Vice-President,
Communications 416-681-3254 moxby@ci.com
United States Trevor Davis, Gregory FCA for CI Financial
610-415-1145 cifinancial@gregoryfca.com
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