- Earnings per share of
$0.56 for the quarter; comparable selling, general and administrative ("SG&A") expenses down$17.9 million from Q2-2019 - Repurchased 2.7 million shares at a cost of
$46.5 million and paid$39.0 million in dividends ($0.18 per share) - Continued modernization of asset management business with launch of CI DoubleLine income funds and other mandates; became the first company to achieve
$2 billion in AUM in growing liquid alternatives market - Wealth management assets reached record high of
$53.9 billion at quarter-end following the acquisitions ofOne Capital Management andCabana Group - Following quarter-end, announced acquisitions of Canadian advisory firm
Aligned Capital andU.S. wealth firmBalasa Dinverno Foltz LLC ("BDF"); will boost CI's wealth assets to approximately$74 billion - Wealth transactions announced to date will result in the addition of
$25 billion in new advisor assets this year vs. additions of$1 billion in fiscal 2019
"We have made tremendous strides in executing on our strategic priorities in just a few months," said
"We have announced two key acquisitions this week alone that will significantly boost our scale in wealth management –
"We have achieved strong initial momentum against our strategic priority of globalizing the company, as our
"We continue to modernize our asset management business, providing innovative solutions that are well-tuned to the needs of today's investors,"
"It's important to note that we are executing these important strategic initiatives while carefully managing our costs – having reduced comparable SG&A expenses by
"Additionally, our firm continues to perform at a very high level during the current COVID-19 pandemic, providing excellent support and service to our clients."
Financial Results
CI reported earnings per share of
SG&A expenses for the second quarter were
CI generated
At
Total wealth management assets as of
CI reported overall net redemptions of
Capital Allocation
In the second quarter of 2020, CI repurchased 2.7 million shares at a cost of
The Board declared a quarterly dividend of
During the quarter, CI completed an offering of debentures with an aggregate principal amount of
Business highlights
- During the quarter, CI acquired interests in three
U.S. RIAs: - CI purchased a strategic interest in
Congress Wealth Management, LLC ofBoston , a firm withUS$2.3 billion in assets. The transaction was announced in May and closed onJuly 2 ; - CI completed the acquisition of a strategic interest in
The Cabana Group, LLC ofFayetteville, Arkansas , which hasUS$1.3 billion in assets under management and offers its own lineup of risk-managed portfolios; and - CI completed the acquisition of a majority stake in
One Capital Management, LLC ("OCM") of Village,California , with approximatelyUS$1.9 billion in assets. In addition to its well-developed specialized practices serving first responders and members of the sports and entertainment industries, OCM has a robust cross-border service. - CI increased its ownership of
WealthBar Financial Services Inc. ("WealthBar") to 100% by acquiring the remaining 25% minority interest. This will facilitate the combination of WealthBar with Virtual Brokers, CI's discount broker, to create an integrated online investment platform to be called CI Direct Investing. - CI Investments became
Canada's Number 1 provider of liquid alternative – or "liquid alt"–investment solutions and the first to exceed$2 billion in assets under management in this category (as reported by theCanadian Association of Alternative Strategies and Assets as ofJune 30, 2020 ). CI launched its first liquid alt funds just 20 months earlier. - CI Investments launched three income mandates sub-advised by
DoubleLine Capital LP , one of the world's leading asset managers and a firm known for its fixed-income expertise. These mandates, offered as mutual funds and ETFs, have been well received by advisors and investors. - CI Investments launched
CI Global Longevity Economy Fund , which focuses on companies benefiting from changes in consumer behaviour, technology and health care resulting from the trend towards longer, healthier lifespans. This mandate, launched as a mutual fund and an ETF, is actively managed by Signature Global Asset Management, a division of CI, using insights and research from Dr.Joseph Coughlin , Founder and Director of theMassachusetts Institute of Technology AgeLab . - CI Investments' other fund launches during the quarter included:
CI Marret Alternative Enhanced Yield Fund , CI's fourth entry in its very successful lineup of liquid alt funds; and- Three mandates focused on real assets to meet growing investor demand for these asset classes:
CI Global Infrastructure Private Pool ,CI Global REIT Private Pool andCI Global Real Asset Private Pool . - CI teamed with
Adams Street Partners, LLC , a leader in private markets investment management with offices around the world, to develop investment solutions exclusively for CI that provide exposure to global private equity and private credit investments.
Following quarter-end:
- CI reached an agreement to acquire a majority interest in
Aligned Capital Partners Inc. ofBurlington, Ontario , a full-service investment advisory firm with approximately$10 billion in assets under administration. The firm supports over 200 financial advisors acrossCanada . - CI agreed to acquire 100% ownership of Balasa Dinverno Foltz of
Itasca, Illinois , an RIA with approximatelyUS$4.5 billion (C$6.0 billion ) in assets. The firm of 62 people operates from offices in theChicago area. - Three of the RIAs in which CI has or will soon acquire interests, as described above, were named to the 2020 FT 300
Top Registered Investment Advisors list: BDF,Congress and Surevest. The FT 300 is compiled by theFinancial Times to highlight elite RIAs inthe United States .
Analysts' conference call
CI will hold a conference call with analysts today at
Financial highlights
As at and for the quarters ended | Change (%) | ||||
[millions of dollars, except share amounts] | QoQ | YoY | |||
Core assets under management | 121,286 | 111,065 | 129,827 | 9 | (7) |
4,277 | - | - | n/a | n/a | |
Total assets under management | 125,563 | 111,065 | 129,827 | 13 | (3) |
Canadian wealth management | 49,003 | 44,150 | 47,350 | 11 | 3 |
4,872 | 461 | - | 957 | n/a | |
Total wealth management assets | 53,875 | 44,611 | 47,350 | 21 | 14 |
Total assets | 179,438 | 155,675 | 177,177 | 15 | 1 |
Core average assets under management | 118,413 | 127,163 | 130,770 | (7) | (9) |
Average assets under management | 120,104 | 127,163 | 130,770 | (6) | (8) |
Net income | 119.8 | 119.9 | 111.5 | - | 7 |
Adjusted net income1 | 120.2 | 126.5 | 138.5 | (5) | (13) |
Basic earnings per share | 0.56 | 0.55 | 0.47 | -2 | 19 |
Diluted earnings per share | 0.55 | 0.54 | 0.47 | 2 | 17 |
Adjusted earnings per share1 | 0.56 | 0.58 | 0.58 | (3) | (3) |
Free cash flow1 | 128.3 | 143.7 | 146.5 | (11) | (12) |
Return on equity2 | 35.4% | 36.6% | 37.8% | ||
Dividends paid per share | 0.18 | 0.18 | 0.18 | - | - |
Dividend yield | 4.2% | 5.2% | 3.4% | ||
Average shares outstanding | 216,202,545 | 219,550,908 | 238,255,145 | (2) | (9) |
Share price – High | 18.46 | 25.81 | 21.57 | (28) | (14) |
Share price – Low | 10.53 | 11.12 | 17.96 | (5) | (41) |
Share price – Close | 17.27 | 13.97 | 21.34 | 24 | (19) |
Change in share price | 23.6% | (35.7%) | 17.0% | ||
Total shareholder return | 24.9% | (34.8%) | 18.0% | ||
Market capitalization | 3,694 | 3,026 | 5,030 | 22 | (27) |
P/E ratio2 | 7.2 | 5.8 | 9.1 | 24 | (21) |
Long term debt (including current portion) | 1,988 | 1,745 | 1,525 | 14 | 30 |
Net debt1 | 1,374 | 1,464 | 1,270 | (6) | 8 |
Net debt to adjusted EBITDA1 | 1.83 | 1.86 | 1.51 | (2) | 21 |
1Free cash flow, net debt, adjusted net income, adjusted earnings per share and adjusted EBITDA are not standardized earnings measures prescribed by IFRS. Descriptions of these measures, as well as others, and reconciliations to the nearest IFRS measures, where necessary, are included in Management's Discussion and Analysis available at www.cifinancial.com. |
2Trailing 12 months, calculated using adjusted net income. |
For detailed financial statements for the quarter ended
About
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.
The FT 300 assesses registered investment advisers based on desirable traits for investors and presents the FT 300 as an elite group, not a competitive ranking of one to 300. RIAs must complete an application to be considered. The formula the FT uses to grade advisers is based on six broad factors and calculates a numeric score for each adviser. Areas of consideration include AUM, asset growth, the company's age, industry certifications of key employees,
This press release contains forward-looking statements concerning anticipated future events, results, circumstances, performance or expectations with respect to
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