News Details

TORONTO (July 8, 2020) - CI Financial Corp. (“CI”) (TSX: CIX) today reported preliminary assets under management at June 30, 2020 of $125.5 billion and wealth management assets of $53.7 billion, for total fee-earning assets of $179.2 billion.

In the month of June, CI’s assets under management increased by 1.7%, its Canadian wealth management assets increased by 0.8% and its U.S. wealth management assets increased by 63.3%, reflecting the closing of a previously announced acquisition. Assets managed by CI’s recently acquired U.S. businesses are now included in CI’s total assets under management. 

Year over year, assets under management declined 3.3% while Canadian wealth management assets grew 3.2%. Canadian wealth management assets include the assets of Assante Wealth Management (Canada) Limited, CI Private Counsel LP, WealthBar Financial Services Inc. and Virtual Brokers.

CI’s U.S. wealth management business consists of its interests in three registered investment advisory firms: One Capital Management, LLC, The Cabana Group, LLC, and Surevest LLC. Year-over-year data is not available given that CI has acquired these interests within the past six months.

CI’s average assets under management for the second quarter were $120.1 billion, compared to the average of $127.2 billion for the first quarter of 2020.

CI also reported preliminary sales results for the second quarter. CI’s Canadian retail business, excluding products closed to new investors, had $1.0 billion in net redemptions, representing an improvement in net redemptions of $0.3 billion over the first quarter of 2020, and an improvement of $0.9 billion over the second quarter of 2019. CI’s Canadian institutional business posted net redemptions of $0.8 billion, which was driven by one institution transitioning a $700-million mandate to its in-house investment team. The fees associated with this mandate were low and will have minimal impact on CI’s earnings. The institutional sales results represent no change compared to the first quarter of 2020 and an increase in redemptions of $0.4 billion from the second quarter a year ago. 

CI’s international business flows were flat for the second quarter of 2020. 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.

“I am very encouraged by the $1.3 billion improvement in our year-to-date retail flows versus the same period last year,” said Kurt MacAlpine, CI Chief Executive Officer. “Despite the global pandemic and economic uncertainty, we have accelerated the execution of our new corporate strategy which includes enhancing our product lineup with relevant new mandates such as the CI DoubleLine income funds and ETFs.

“We continue to execute on our wealth management strategy and believe we are well positioned for continued gains in the challenging environment ahead. With our wealth management assets at an all-time high, and strong growth in the company driven by acquisitions in the U.S., we expect this momentum to continue.”

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.

1 Includes $32.1 billion of assets managed for clients of CI wealth management firms at June 30, 2020 ($30.0 billion at May 31, 2020 and $27.2 billion at June 30, 2019).

About CI Financial

CI Financial Corp. (TSX: CIX) is an independent company offering global asset management and wealth management advisory services. CI’s primary asset management businesses are CI Investments Inc. and GSFM Pty Ltd., and it operates in wealth management through Assante Wealth Management (Canada) Ltd., CI Private Counsel LP, WealthBar Financial Services Inc., BBS Securities Inc., The Cabana Group, LLC, Congress Wealth Management, LLC, One Capital Management, LLC and Surevest LLC. Further information is available at www.cifinancial.com.

All financial amounts in Canadian dollars unless otherwise specified.

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.

For further information:

Douglas J. Jamieson
Executive Vice-President and Chief Financial Officer
CI Financial Corp.
(416) 364-1145
investorrelations@ci.com