CI reports record third-quarter results

CI Financial Corp. reported its 2021 third-quarter earnings on Thursday, posting record-high adjusted earnings per share and total assets.

Adjusted net income attributable to shareholders, which presents underlying operating performance excluding certain impacts of acquisitions, was $159.2 million or $0.80 per share for the quarter ended Sept. 30, up 19% from $133.3 million or $0.63 a share in the same quarter last year, the firm said in a release. Net income attributable to shareholders was $43.8 million or $0.22 per share for the quarter, down 66% from the same period last year.

On Wednesday, CI Financial reported total assets of $331.8 billion at the end of October 2021, up 3.6% from the previous month and 63.8% from the previous year. For the third quarter, CI Financial recorded total assets of $320.4 billion, an increase of 65% year over year.

“CI is $126 billion larger, much more diversified by business line, geography and product category, and more competitive than it was just one year ago,” said Kurt MacAlpine, CEO of CI, in the release.

Asset management net sales at CI Financial were $821 million for the quarter, the highest level since the second quarter of 2015, and up from outflows of $2 billion posted for the third quarter of 2020. The firm attributed the significant improvement to products such as new ETFs and liquid alternatives, and those with environmental, social and governance mandates.

CI Financial declared a quarterly dividend of $0.18 per share. In the quarter, the firm repurchased 4.1 million shares for $99.7 million, and spent $134 million toward mergers and acquisitions, reflecting a combination of new deal and deferred payments.

CI Financial announced on Wednesday the acquisition of Gofen and Glossberg, a Chicago-based high-net-worth registered investment adviser with $9.3 billion in client assets, and a minority investment in Cleveland-based GLAS Funds, LLC, an alternative investment platform and alternative asset management firm.

“Making this investment [in GLAS Funds] will enable us to deliver a better client experience, which is incredibly important as we work to build the leading high-net-worth and ultra-high-net-worth wealth manager in the U.S,” MacAlpine said in a release announcing the deal.

Rudy Mezzetta

Rudy is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on tax, estate planning, industry news and more since 2005. Reach him at rudy@newcom.ca.