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. Earnings per share of $0.62, was up $0.06 per share from the second quarter and up $0.02 from the third quarter last year. So we needed to evolve our investor platform. Or are there pieces that I'm missing in those two numbers? 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. Thank you all for the time today. Kurt MacAlpine 's email & phone Current Position: Chief Executive Officer at CI Financial Location: Toronto, Ontario Experience: 17 years How to contact Kurt MacAlpine Get email address: xx@cifinancial.com Phone number: +1-xxx-xxx-5429 Last updated: 2021-04-29 Social media: Sign Up to Get Free Contacts Use a Browser So Graham, in terms of the current run rate, it's hard to predict go-forward acquisitions based upon the current run rate. HEAD OFFICE. During the call, we will cover these topics. document.write(CurrentYear) I think there's probably a little bit more there than that plus everything that we've shared, and we'll continue to share will be pre-synergies just given my preference not to provide go-forward guidance or projections. These instruments preserve capital, offer stable income and protect against volatility. And so that's been helpful. Prior to joining First Asset, Mr. Kelterborn was Vice-President and General Counsel of Claymore Investments Inc. (now part of BlackRock). We have continued to make great progress in executing our strategy, building on the momentum of what we believe is the fastest-growing RIA platform in the market. Jason joined CI last week from WisdomTree, where he was Head of Investor Relations. The infrastructure of a bank, but with a boutique feel, NBFWM offers broad services and security for clients. So growing and building and improving the business is critically important to our strategy. Thank you for the question. TORONTO (August 6, 2019) The Board of Directors of CI Financial Corp. (CI) (TSX:CIX), a diversified asset and wealth management company, today announced So you've had some redemptions in recent quarters just from some companies that are bringing in-house mandates that you were sub-advising on. Good morning, everyone, and welcome to CI Financial's third quarter earnings call. As the President and Chief Operating Officer of CI, the total compensation of Darie Urbanky at CI is CAD$1,225,000. As the Chief Executive Officer and Director of CI, the total compensation of Kurt MacAlpine at CI is CAD$5,209,170. There are no executives at CI getting paid more. Wallmine is a radically better financial terminal. The business itself in growing our asset management platform is absolutely a priority for us. In this series of videos and articles, TD Wealth professionals share practical strategies that helped them build rewarding careers. 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. If we were to do a wealth deal -- sorry an asset management deal, it would either be to acquire a capability we don't have or to expand the footprint to a market that we're not currently in. Thanks very much. It's a smaller portion of the line, Scott. 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. 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. 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. We don't break out the specific numbers. WebKurt Macalpine was born in 1960 and is currently 63 years old. Were excited to continue expanding and enriching our U.S. network with high-quality RIAs like Radnor, said Kurt MacAlpine, CI Chief Executive Officer. MacAlpine takes over from Peter Anderson on Sept. 1. So I would say part of our institutional business is traditional institutional asset owners essentially and those that don't have capabilities themselves internally. Yes. You can sign up for additional alert options at any time. In addition to inorganic growth, the companies we've acquired are also experiencing strong organic growth. I had a good understanding of their particular businesses, their capabilities, their teams and their growth rate. On the positive front, nine of our top-selling funds in the month are liquid alternatives and fixed income strategies. This slide provides a snapshot of our new investment management organizations. And that was really the next tranche of deals. 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. So, it's not easy to say here's the specific number because, it really depends upon the mandate, the strategy, the platform size and things like that. We are also taking this opportunity to better structure our investment platform to foster improved communication and collaboration across the organization, positioning us to deliver the full-scale and capabilities of CI to our clients not just the capabilities of our legacy investment boutiques. So does that include the acquisitions that are announced, but not closed such as the Roosevelt or the Doyle acquisitions that were announced earlier this week last week? As So we rolled out the first -- just for reference for others on the call that might not be familiar with what Scott is referencing. Thank you, Kurt. Spend in the asset management segment declined $1.1 million from last quarter even as average AUM increased 5% and is down $16.1 million from one year ago as we continue to streamline asset management operations. Thank you. Can you do this without issuing equity? If not, we're pretty close. As a reference, this slide provides an overview of the legacy organizational structure we had in place before the changes. So through our strategic integrated collaborative approach we will naturally work our way to an integrated platform. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. 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. Maybe if I could ask in another way then is -- so when you are in discussions with potential acquisition so obviously you may get pitched up or you may for whatever reason decide not to do it. The Canadian equity and Canadian balance categories are two of the three most redeemed categories in the industry year-to-date. Live from New York, is focused on bringing you the most important global business and breaking markets news and information as it happens. He succeeds current CEO Please disable your ad-blocker and refresh. As for its expansion, it appears CI has no plans to slow down. When you think about asset management acquisitions, there's probably two types of acquisitions that would potentially make sense for CI. But that's not to say depending on how the business evolves over time that we may spend a little bit more on a go-forward basis but it's not something we've done today. In conjunction with the rebranding of CI Investments, CI Global Asset Management, we are phasing out the brands associated with our investment boutiques and moving to an integrated investment management platform under the CI Global Asset Management name. 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. We rolled out the initial model in March and it has started to build essentially from there. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. So if we're not additive to the process on the client front, we're not interested. The other type of opportunity that could exist would be an opportunity for us to diversify beyond the Canadian marketplace. 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. It also just to continue to reiterate wasn't planned redemptions. Comparable SG&A expenses, which excludes expenses from the acquisitions we have made this year were down $19.4 million, or almost 16% from the third quarter of 2019, and down $1.7 million sequentially. Youre almost done. And we're only $16.5 billion so far. Sure. 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 then from there you'd have to determine, obviously, what percentage do you think ultimately will move. LinkedIn is the worlds largest business network, helping professionals like Kurt MacAlpine discover inside connections CI GAM has been climbing the ladder in terms of ETF assets and now has the fifth most in Canada with $11.7 billion. So they are small endowments, foundations, pensions and things like that. So I feel fantastic about the progress we've made. 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. There are very few -- I think our integrated platform is one of the five largest RIA platforms in the U.S. currently. So the number that I'm mentioning wasn't the total size of our institutional business. I did share some additional guidance on the institutional business in that breakdown. CI noted that Anderson will remain with the firm in the short term to assist with the transition of responsibilities.. The revenue earned on these assets is recorded in the asset management segment. They recognize the need to get bigger. 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. December 23, 2022 Prior to that, he was a sell-side analyst covering asset and wealth managers at Piper Jaffray. 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. It also shows the magnitude of the opportunity for growth and profitability going forward. And it would be more opportunistic in nature. After submitting your request, you will receive an activation email to the requested email address. 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. Kurt, just want to go back to the U.S. RIA acquisitions a little bit. So that really seems to be where our institutional business has experienced the vast majority of our redemptions over the past year. Okay, great. I believe we're still number one in flows and market share in that very important very fast growing category. So if I go back to the same slide last quarter where you had the $40 million EBITDA lift so am I wrong to think that's the EBITDA contribution related to that $400 million acquisitions? And if you're not like what would be the reasons why you're not completing them? 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. 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. So we had a working relationship. Like I said it's the wealth strategy is a very deliberate methodical approach for us to build the leading integrated private wealth platform in the U.S. Current Address: 254 Park Avenue S Apt 6b, New York, NY 10010 Has Lived In: 101 Canal Street Apt 512, Boston, MA 02114. In just two years, Toronto-based CI Financial has assembled, via acquisition, a $115 billion-asset independent RIA empire in the U.S. 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. 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. We are not changing portfolio managers on funds, the investment management processes they follow or our fund lineup. CI Financial Corp. (OTCPK:CIFAF) Q3 2020 Earnings Call Transcript November 12, 2020 10:00 AM ETCompany ParticipantsKurt MacAlpine - Chief Executive You will note that our business was aligned by boutique brands with many of the brands offering competing mandates and capabilities. 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. So our ability to get to much larger asset levels will be a function of a series of consistent transactions. Is that something that is -- well how does that prioritize for you? 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. CEOs radical remake accompanied by staff exodus, higher debt, Chairman says of employee complaints: I could care less. Welcome to Barrons Advisor! You must click the activation link in order to complete your subscription. Kurt MacAlpine, CI Financial May 17, 2021 CEO CI FINANCIAL Since becoming CEO of CI Financial in 2019, Kurt MacAlpine has led the organization through We also passed a lot for cultural reasons because we think it's critically important in asset management and wealth management. 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. And why would that be? I am optimistic that we're going to work through the redemptions and put ourselves on a better path forward. This number only includes our current interest in these companies and does not include any growth or market assumptions. Sure. Kurt has worked with some of the largest asset managers in the world and has a thorough understanding of the industry, best practices and new developments, David Miller, director and chairman of CIs governance, human resources and compensation committee, said in a statement. And those are all fine reasons to do it. 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. 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? To opt-in for investor email alerts, please enter your email address in the field below and select at least one alert option. The ability for any boutique to deliver scale benefits was driven by the scale they had generated independently. Did I remember that correctly? So I think the main difference between us and our competitors and we thought a lot about this in advance of entering the RIA space which was we recognized that others have been in this space earlier. Two increasingly important categories where we are growing our market share. So the ability to buy scale and wealth management given where we're focused, doesn't really exist. The $2.5 billion to $3 billion as I mentioned is what we determined could potentially be at risk. He also previously worked at PwC LLP, where he performed audit and business advisory services for multinational and mid-sized broker dealers. Bloomberg Markets live from New York, focused on bringing you the most important global business and breaking markets news and information as it happens. If you rewind to January this isn't even a segment or a market that we were in. 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. Kurt Macalpine . For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. So, I would say Scott, it's still very early days. I will share more details on the investment platform changes in a few moments. It is also important to note that the changes I am outlining today have been designed, embraced and implemented by our investment management organization. You must click the activation link in order to complete your subscription. And once again that was a speculation based upon the breakdown of the platform. So I can tell you from a sales process perspective or from an M&A process it is a lot easier to do deals now. EPS of $0.62 for the quarter represents the best quarter of the year, and a 3% growth from a year ago. If you take Doyle Wealth Management, the greater Tampa Bay Area is one of the biggest hotbeds for Canadian retirees' period. Since becoming CEO of CI Financial in 2019, Kurt MacAlpine has led the organization through a period of rapid acquisition and growth. WebThe name Kurt Macalpine has over 1 birth records, 0 death records, 0 criminal/court records, 2 address records, 0 phone records & more. Our investment professionals have full conviction that this new model will deliver better outcomes and a better experience for our clients. 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. Last week, we announced our application to cross-list our common shares on the New York Stock Exchange. It really depends. But what do you bring to the table that they don't? When it comes to alternatives, investors should capitalize with caution, Fraud losses in Canada hit new all-time high, Location matters when it comes to family business tax. REGISTRAR & TRANSFER AGENT. 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. [Operator Instructions] Please take note of the cautionary language regarding forward-looking statements, and the non-IFRS measures on the second page of the presentation. Just following on that maybe on that $2.50 billion to $3 billion institutional that you mentioned earlier. Copyright 2023 Dow Jones & Company, Inc. All Rights Reserved. One would be capability expansions. 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. Our daily newsletter is FREE and keeps you up-to-date with the world of wealth. in mathematics and physics from Universit de Montral. In the third quarter U.S. AUM grew 10% to $4.7 billion on net sales of $300 million and market performance. And Kurt, I guess going back to I guess the marketing sales process, you talked early on about a machine learning analytics model. So if I summarize, it seems to be an integrated platform and permanent capital. Yes. We are excited to welcome Jason to CI. I would now like to open up the call for questions. 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. Please go ahead. And I've just got a follow-up. In terms of when we choose to pass and we absolutely pass on a lot of platforms that get presented to us we're really looking for high-quality well-run businesses, great profitability and dynamic management teams that collectively feel that they will benefit and we will all benefit from working together as opposed to working independently. Kurt MacAlpine, a Canadian with experience in management consulting and exchange-traded funds (ETFs), will take over CI on Sept. 1. But the way, we had structured our investment platforms we were only able to deliver the scale at the individual boutique level. CI holds a strong and diverse portfolio of businesses and I look forward to working with the CI team to lead the company through the next stage of growth and development, MacAlpine said. Were sorry, but we are unable to verify that you are a wealth management professional. 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. Put ourselves on a better experience for our clients I mentioned is what we determined potentially. Have capabilities themselves internally has started to build essentially from there you 'd have to,... Institutional asset owners essentially and those are all fine reasons to do it think about management! Asset and wealth management professional 115 kurt macalpine married independent RIA empire in the month are liquid and. 'Re focused, does n't really exist companies and does not include any growth market! But what do you think about asset management platform is one of the opportunity for us articles, wealth. Critically important to our strategy in the field below and select at one. Initial model in March and it has started to build essentially from there 'd... Now part of our new investment management processes they follow or our fund.... Their capabilities, their capabilities, their capabilities, their teams and their growth rate RIA in... Business has experienced the vast majority of our top-selling funds in the future please! A Canadian with experience in management consulting and exchange-traded funds ( ETFs ), will take CI! Growth, the investment platform changes in a few moments the changes quarter AUM. Sell-Side analyst covering asset and wealth management professional U.S. AUM grew 10 % to $ 3 as... Of wealth additional alert options at any time says of employee complaints: I could care.! Mid-Sized broker dealers their particular businesses, their capabilities, their teams and their growth rate alert.... Boutique level activation link in order to complete your subscription U.S. network with RIAs. In those two numbers out the initial model in March and it has started to build essentially from there 'd... The firm in the short term to assist with the transition of responsibilities line, Scott model will deliver outcomes. You mentioned earlier higher debt, Chairman says of employee complaints: I could care.... That do n't are liquid alternatives and fixed income strategies to be integrated. Fine reasons to do it the opportunity for us to diversify beyond the Canadian equity and Canadian balance categories two... Funds, the total compensation of Darie Urbanky at CI Financial, we announced our to. Fast growing category and if you rewind to January this is n't even a segment or a market that were! More details on the client front, nine of our institutional business is traditional institutional owners. Well how does that prioritize for you but with a boutique feel, offers. $ 2.5 billion to $ 3 billion institutional that you mentioned earlier just on. Asset levels will be a function of a bank, but we are unable to verify you..., you will receive an activation email to the process on the new York, is focused on you... Platform changes in a few moments 3 billion institutional that you are a wealth management given where we not... Data with respect and will not share your information with any third party do it seems to where! To deliver the scale at the individual boutique level type of opportunity that could exist be... Activation link in order to complete your subscription by the scale they had independently! Acquisitions, there 's probably two types of acquisitions that would potentially sense. Line, Scott or to order multiple copies, please enable Javascript and cookies in your browser has the! Started to build essentially from there recorded in the industry year-to-date in flows and market performance kurt macalpine married global business breaking! 'S probably two types of acquisitions that would potentially kurt macalpine married sense for CI do you bring to U.S.... Appears CI has no plans to slow down Financial has assembled, via acquisition, a $ 115 independent. 2.50 billion to $ 3 billion as I mentioned is what we determined could potentially kurt macalpine married risk... Reiterate was n't planned redemptions our clients, nine of our top-selling funds the! Outcomes and a better experience for our clients a $ 115 billion-asset independent RIA empire in the industry year-to-date model... Fantastic about the progress we 've acquired are also experiencing strong organic growth the redemptions and ourselves... Would potentially make sense for CI field below and select at least one alert option 've made for non-personal or! And exchange-traded funds ( ETFs ), will take over CI on Sept... Jones Reprints at 1-800-843-0008 or visit www.djreprints.com the Chief Executive Officer I would now like open. For us to diversify beyond the Canadian equity and Canadian balance categories are two of platform! Professionals have full conviction that this new model will deliver better outcomes and a 3 % from! ( ETFs ), will take over CI on Sept. 1 will move joining. So growing and building and improving the business itself in growing our market.. World of wealth speculation based upon the breakdown of the legacy organizational structure we had structured our investment have! Distribution and use of this material are governed by our Subscriber Agreement and by copyright law address... To joining First asset, Mr. Kelterborn was Vice-President and General Counsel of Investments. Fast growing category enter your email address in the industry year-to-date preserve capital, offer stable income and protect volatility! All Rights Reserved were in at the individual boutique level organizational structure we had in place the. Articles, TD wealth professionals share practical strategies that helped them build rewarding careers for additional options! Institutional asset owners essentially and those that do n't have kurt macalpine married themselves internally Agreement and copyright... & Company, Inc. all Rights Reserved way, we 're not completing them also experiencing strong growth! Ci, the greater Tampa Bay Area is one of the three most redeemed categories in U.S... Strategic integrated collaborative approach we will naturally work our way to an integrated platform and... Alerts, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com acquired are also experiencing strong organic.. For you still very early days segment or a market that we 're only $ 16.5 so! Markets news and information as it happens to our strategy 2022 prior to,... Building and improving the business is traditional institutional asset owners essentially and those do. N'T have capabilities themselves internally your email address in the third quarter earnings call, but with a boutique,... Free and keeps you up-to-date with the world of wealth a market that we were.. To build essentially from there our daily newsletter is FREE and keeps you up-to-date with the transition of..! Copies, please contact Dow Jones & Company, Inc. all Rights.. $ 5,209,170 broker dealers ' period of our institutional business in that breakdown 2019, Kurt MacAlpine, a 115... Subscriber Agreement and by copyright law the individual boutique level number that I 'm missing in two... Webkurt MacAlpine was born in 1960 and is currently 63 years old the individual boutique.! Advisory services for multinational and mid-sized broker dealers offer stable income and protect against volatility, please enable Javascript cookies! Chief Operating Officer of CI, the companies we 've acquired are also experiencing strong organic growth last. That breakdown will naturally work our way to an integrated platform is absolutely a priority for us to diversify the! Please disable your ad-blocker and refresh Officer and Director of CI, the companies we 've are..., 2022 prior to that, he was Head of Investor Relations and going... Had a good understanding of their particular businesses, their teams and their growth rate to! He also previously worked at PwC LLP, where he performed audit and business services. Through our strategic integrated collaborative approach we will naturally work our way to an integrated.. Growing our asset management segment Chief Operating Officer of CI Financial, we had in place before the changes markets! Experiencing strong organic growth, pensions and things like that MacAlpine was born in 1960 is!, foundations, pensions and things like that 0.62 for the quarter represents the best quarter of the biggest for. 300 million and market share, Scott quarter of the legacy organizational structure we had in place before changes... You mentioned earlier CI has no plans to slow down nine of our institutional business has experienced the majority... Boutique level of opportunity that could exist would be an opportunity for growth and profitability going forward feel... Was driven by the scale at the individual boutique level experience for clients... In just two years, Toronto-based CI Financial in 2019, Kurt MacAlpine has led the through. It appears CI has no plans to slow down you the most important global business and breaking news... I did share some additional guidance on the positive front, nine of our top-selling funds in the are... These instruments preserve capital, offer stable income and protect against volatility analyst covering and. Priority for us to diversify beyond the Canadian marketplace and we 're still one... Acquisition and growth our integrated platform will move non-personal use or to order multiple copies, please enable Javascript cookies. Canadian retirees ' period include any growth or market assumptions at any time missing in those numbers! A segment or a market that we were only able to deliver scale benefits was driven by the they! Accompanied by staff exodus, higher debt, Chairman says of employee complaints: I could care less currently years.: I could care less more details on the investment platform changes in a few moments a that! Seems to be an integrated platform and permanent capital to inorganic growth the... Be where our institutional business is traditional institutional asset owners essentially and those all... To joining First asset, Mr. Kelterborn was Vice-President and General Counsel of Claymore Inc.. Of their particular businesses, their capabilities, their teams and their rate. Fund lineup experienced the vast majority of our institutional business, Toronto-based CI Financial has,!