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CI Financial Corp. (CIX.TO)

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    Total Assets of $320.4 Billion for September 2021
    CI’s Asset Management
    delivers $800 million
    in net sales for its best quarter
    in over six years

    All financial amounts in Canadian dollars unless stated otherwise.

    October 19, 2021 07:00 AM Eastern Daylight Time
    TORONTO--(BUSINESS WIRE)--CI Financial Corp. (“CI”) (TSX: CIX, NYSE: CIXX) today reported preliminary assets under management as at September 30, 2021 of $146.6 billion and wealth management assets of $173.8 billion, for total assets of $320.4 billion.

    On September 30, 2021, CI completed the previously announced acquisition of Portola Partners Group LLC, a Menlo Park, California-based registered investment advisor (“RIA”) focused on serving ultra-high-net-worth families. The transaction added $6.7 billion to CI’s wealth management assets. On October 1, 2021, CI completed the acquisition of Budros, Ruhlin & Roe, Inc. (“BRR”), an RIA based in Columbus, Ohio, with approximately $4.4 billion in assets. CI’s reported assets as at September 30, 2021 do not include BRR.

    CI also reported preliminary net sales results for its asset management businesses for the third quarter. CI had overall net sales of $0.8 billion, representing the second consecutive quarter of positive net flows and CI’s best net sales since the second quarter of 2015. CI’s net sales are now positive for the year-to-date 2021.

    “CI’s net flows continue to strengthen, reaching their highest level in over six years,” said Kurt MacAlpine, CI Chief Executive Officer. “This positive trend is led by our Canadian retail operations, where the modernization of our business has had a tremendous impact.

    “The transformational changes we have made include moving from a multi-boutique asset management structure to a fully integrated global platform, completely revamping our sales and marketing model, incorporating data analytics into sales and other operations, and adopting a new, more robust approach to product development that has resulted in the introduction of a series of more relevant investment products. We believe these changes are directly responsible for the turnaround in the performance and sales of our Canadian Asset Management business.”
    CI Financial reports total assets of $320.4 billion at September 30, 2021 and its best quarterly net sales in over six years.
    CI Financial reports total assets of $320.4 billion at September 30, 2021 and its best quarterly net sales in over six years.
  • D
    love this stock!
  • M
    Maui Jay
    Stock is going to $40
  • H
    "CIX is in the fortunate position of having a business that currently generates $600+ million of free cash flow per year. That cash flow is available to fund the dividends on the stock, share buybacks and acquisitions. They have also increased debt a bit over the past 18 months to fund the combination of those three as they have seen a strong pipeline for acquisitions while at the same time view their stock as undervalued. While there could be a small stock component in some of these deals, they generally don’t want to be issuing stock given their view that the shares remain considerably undervalued compared to the platform they have built."
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    Acquire McCutchen Group
    Addition of multi-family office
    RIA boosts CI’s U.S.
    wealth assets to US$83 billion

    October 21, 2021 07:30 AM Eastern Daylight Time
    MIAMI & TORONTO & SEATTLE--(BUSINESS WIRE)--CI Financial Corp. (“CI”) (TSX:CIX; NYSE:CIXX) and McCutchen Group LLC ( “McCutchen Group”) today announced an agreement under which CI will acquire McCutchen Group, an ultra-high-net-worth focused wealth management firm with US$3.4 billion in assets under management.

    As a trusted advisor to a select group of individuals and families across the country, the Seattle-based firm provides comprehensive financial advisory services ranging from investment management to tax, charitable and estate planning, as well as family office services. Founded in 2007, McCutchen Group is guided by a client-first mentality that allows it to deliver a high level of personal service.

    “McCutchen Group is an exceptional multi-family office RIA with deep client relationships, developed through extensive experience serving the complex needs of the ultra-high-net-worth segment,” said Kurt MacAlpine, CI Chief Executive Officer. “McCutchen Group further enhances our presence and expertise in this space, which is critical to CI Private Wealth becoming the leading wealth management platform in the U.S. for high-net-worth and ultra-high-net-worth individuals and families.

    “In addition, McCutchen Group is CI’s first office in the Pacific Northwest and provides a solid foundation for continued growth in that region.”

    “CI is an ideal partner for us and our clients, given the strong alignment of culture and values and its commitment to a client-focused model,” said Matt McCutchen, Founder and Chief Executive Officer of McCutchen Group. “Working with CI will allow us to expand and enhance the services we offer our clients while preserving the advisory model that our clients value.”

    Since entering the U.S. registered investment advisor sector in January 2020, CI has become one of the country’s fastest-growing national wealth management platforms. This transaction is expected to boost CI’s U.S. wealth management assets to approximately US$83 billion (C$106 billion), with CI’s total assets globally amounting to approximately US$260 billion (C$329 billion).

    The Asset & Wealth Management Investment Banking Group of Raymond James & Associates, Inc. acted as financial advisor to McCutchen Group and Perkins Coie served as legal advisor. CI’s legal advisor was Hogan Lovells US LLP. This transaction is expected to close later this year, subject to regulatory approval and other customary closing conditions. Financial terms were not disclosed.

    All financial amounts are as of September 30, 2021.
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    Yahoo Finance Insights
    CIX.TO reached a 52 Week high at 28.27
  • I
    What A Week with some massive volume traded in the last minute to close things out! Lets Go!
  • Y
    Yahoo Finance Insights
    CIX.TO reached a 52 Week high at 27.26
  • Y
    Yahoo Finance Insights
    CI Financial reached an all time high at 21.94
  • Y
    Yahoo Finance Insights
    CI Financial reached an all time high at 21.70
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    CI Financial up after reporting purchase of
    Pennsylvania RIA Radnor Financial Advisors
    CI Financial (CIX.TO) on Wednesday rose 1.43% after reporting the purchase of Radnor Financial Advisors, a registered investment adviser based in Wayne, Pa., with US$2.6 billion in assets.

    With the completion of the deal and another outstanding transaction, the company's U.S. business will include 16 RIAs serving clients across the country, with assets totaling about US$75 billion (C$94 billion).
  • h
    Algorithms identifies that $CIXX stock is around support and consequently, might be a short-term technical buy around the current price
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  • R
    Looks like $30 is the new target price across the board!

    Fromthe Globe & Mail this morning...
    Following Tuesday’s release of in-line second-quarter results, CIBC World Markets analyst Nik Priebe raised his recommendation for CI Financial Corp.

    to “outperformer” from “neutral” with a $30 target, up from $24 and above the $28.33 average.
    Others making changes include:

    * Desjardins Securities’ Gary Ho to $29 from $27 with a “buy” rating.

    “We maintain our Buy rating on the back of: (1) improving signs of retail net flows; (2) increased traction of the US RIA buildout and solid net organic growth rate as well as the healthy EBITDA margins this platform generates; and (3) valuation remains attractive and CI’s NCIB should support the shares,” said Mr. Ho.

    * BMO Nesbitt Burns’ Tom MacKinnon to $30 from $26 with an “outperform” rating.

    “We remain constructive on CI’s outlook following a solid Q2/21 beat on adjusted EPS/ EBITDA,” he said. “The U.S. RIA acquisition strategy continues to drive incremental earnings. Increased WM run-rate EBITDA guidance, coupled with better-than-expected July net sales, is encouraging. Buyback remains active. We increased H2/21 by 2 per cent and 2022 EPS estimates by 6 per cent, largely reflecting higher WM EBITDA expectations. Target price goes to $30 (from $26) on increased target multiple of 9.0 times (from 8.5 times) on 2022 estimated EPS, with increased target multiple reflecting improving outlook on both flows and incremental value-add from acquisitions.”

    * RBC’s Geoffrey Kwan to $30 from $26 with an “outperform” rating.

    “The key takeaway for us is that it appears CIX may be closer to returning to positive net sales than we previously expected. Net sales were positive in Q2/21 and were positive in July 2021, which we attribute to very strong industry net sales, significant improvements in overall fund performance vs. peers (based on 1-year quartiles) and new product launches. While it’s too early to conclude CIX is definitely back to positive net sales, it’s clear that CIX has seen a substantial improvement in net sales this year. Furthermore, CIX remains active acquiring RIAs, including another one announced today. Big picture, we think there is still significant valuation upside in the stock and that additional disclosure on the U.S. RIA strategy could provide further valuation upside,” said Mr. Kwan.

    * Canaccord Genuity’s Scott Chan to $31 from $28.50 with a “buy” rating.

    * Scotia Capital’s Phil Hardie to $27 from $26 with a “sector perform” rating.
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    to Acquire Portola Partners, Leading US$5.2-B Wealth Manager

    Firm specializes in meeting the complex financial needs of tech founders, executives and other ultra-high-net-worth investors

    CI Financial Corp. (“CI”) (TSX: CIX; NYSE: CIXX) and Portola Partners Group LLC (“Portola Partners” or “Portola”) today announced an agreement under which CI will acquire Portola Partners, a Silicon Valley wealth management firm specializing in meeting the distinct needs of ultra-high-net-worth families.

    Portola Partners manages US$5.2 billion in assets and provides comprehensive investment and wealth planning solutions to respected families with complex, unique requirements. It has developed substantial expertise at the intersection of investments and tax, wealth transfer, estate and charitable planning. Many of Portola’s clients live in the San Francisco Bay area and include technology company founders, executives and venture capitalists.

    “Portola’s expertise and client focus have earned them the loyalty and trust of some the country’s most successful wealth creators, and we are thrilled to have the team join CI,” said Kurt MacAlpine, CI Chief Executive Officer. “Portola has developed wide-ranging capabilities to address the multifaceted needs of ultra-high-net-worth families, from intellectually rigorous, endowment-style investment management to complex tax planning to a wide range of family office services. The Portola team and model will be valuable in fostering the development of our ultra-high-net-worth offering across CI Private Wealth.”

    “Joining with such a premier group is a big step forward in delivering on our two-part mission, doing what is right for our deeply valued clients and for our exceptional team,” said Zack Herlick, Portola Co-Managing Partner. “CI’s quality and scale will allow us to broaden and deepen the array of best-in-class services we offer to discerning families with sophisticated needs and wants.”

    “CI Private Wealth’s wisely crafted professional services partnership model provides an unusually attractive, long-term growth opportunity for our future generations of advisors and leaders,” said Steve Rehmus, Portola Co-Managing Partner. “We have been very impressed with the quality of our new colleagues at CI and at the other well-managed, healthily growing CI Private Wealth firms. This highly professional and collegial group is well suited to deliver on CI’s strategic vision to build the leading private wealth platform in North America.”

    With this transaction, CI expands its presence into the San Francisco Bay Area, an important region of technology-driven wealth creation.

    Following the completion of this and other outstanding acquisitions, CI’s U.S. wealth management assets are expected to reach approximately US$82 billion (C$103 billion), with CI’s total assets globally reaching approximately US$263 billion (C$331 billion).

    Alston & Bird LLP served as legal advisor to Portola and Berkshire Global Advisors LP served as financial advisor to Portola. CI’s legal advisor was Hogan Lovells US LLP. This transaction is expected to close later this month, subject to regulatory approval and other customary closing conditions. Financial terms were not disclosed.

    All financial amounts are as of August 31, 2021.

    About Portola Partners

    Portola Partners provides sophisticated investment advice and integrated comprehensive planning to respected families, foundations and endowments, many of whom have made and continue to make significant contributions to the world. The firm is distinguished by the quality and experience of its team. Senior team members have worked closely together for over a decade and lead a group of almost 30 professionals. Headquartered in the heart of Silicon Valley, Portola serves clients in the San Francisco Bay Area and across the United States.
  • C
    A great quarter overall with great headlines, such as the buybacks continuing with strength. However, I see two issues management needs to address. SG&A is growing at the same pace as revenue. As this is mostly pay packages in this business, it’s time to thin the herd. They need to take stock with all of these acquisitions and lean out their management structure. If expenses grow as fast as revenue earnings go down as profits represent only a portion of the revenue growth. It’s simple math. Also, leverage. The debt levels are rising quickly and we need a plan to reduce or de-leverage.
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    Establishes U.S. Headquarters in Miami

    Fast-growing C$320-billion wealth and asset management firm makes strategic move to support continued U.S. expansion

    CI Financial Corp. (“CI”) (TSX: CIX; NYSE: CIXX), a diversified global asset and wealth management company, announces the establishment of its U.S. headquarters in Miami.

    The addition of a headquarters in Florida follows CI’s rapid wealth management expansion in the U.S., with the company acquiring or agreeing to acquire 21 registered investment advisor firms (including affiliate acquisitions) in 19 months since rolling out a new corporate strategy. During this period, CI’s U.S. assets have reached C$92 billion (US$73 billion). CI’s total assets globally have grown to C$320 billion (US$254 billion), up from C$176 billion (US$131 billion) only 18 months ago – making CI one of the fastest-growing asset and wealth management companies globally. (Asset levels as at August 31, 2021.)

    Establishing the Miami headquarters serves as a natural evolution of CI’s expansion in the U.S. This office will oversee the continued development of CI Private Wealth, the brand name for CI’s U.S. platform.

    “Miami is an incredible place to establish our U.S. headquarters and support our fast-growing U.S. business,” said Kurt MacAlpine, Chief Executive Officer of CI Financial. “It serves as the next logical step for our expansion plans as we work to build the leading high-net-worth wealth management platform in the country. In addition, Miami is a vibrant, multicultural city that offers a deep talent pool, an attractive location for recruiting and a very business-friendly environment.”

    The office, located in the city’s Brickell district, will be home to CI’s U.S. operations and the primary location for its U.S. leadership team. CI’s executive officers will divide their time between the Miami and Toronto offices. CI expects to expand its presence in Miami over time as the firm continues to execute against its U.S. corporate strategy.

    “We are thrilled to welcome CI Financial to Florida,” said Governor Ron DeSantis. “Their move is the latest example of our welcoming business climate at work – something we continue to see from Miami to Pensacola. We appreciate CI Financial’s commitment to our state and wish them all the success.”

    “CI Financial is the largest financial institution to ever place a headquarters in South Florida,” said Miami Mayor Francis Suarez. “The significance of this cannot be overstated and moves us further towards our goal to become the ’capital of capital.’ We thank Kurt MacAlpine, the board of directors, their executive team, and our own Venture Miami team for supporting their move to the City of Miami.”

    “We are thrilled to welcome one of Canada’s largest asset and wealth management firms to Miami-Dade County. This move is a testament to the ongoing efforts of The Miami-Dade Beacon Council and our thriving community that continues to attract a growing number of global firms in finance, tech and more,” said Miami-Dade Mayor Levine Cava.
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    More Analysis

    CI reported solid results with assets of $304.0B increasing 69% year-over-year, asset management net flows at the highest level in six years, and adjusted EPS of $0.75. The company increased revenues by 39% to $534.3M against the previous year. The stock does remain cheap with a price to sales of 1.8X and forward P/E of 7.7X. Net profit margins have been on somewhat of a decline over the past few years (which may have caused concern for some investors) but overall the recent growth looks good and if CI can continue its sales momentum, we would expect the stock to do well from here.

    So said 5iRsearch. GLTA
  • M
    Maui Jay
    Solid stock