CI Financial (CIXXF) 13 Nov 202020 Q3 Earnings call transcript

Good morning, ladies and gentlemen. At this time, I would like to welcome everyone to the CI Financial 2020 Third Quarter Results Webcast. All lines are in a listen-only mode. After the speakers’ remarks, there will be a question-and-answer session. [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. to call like to now would turn over the Mr. I CEO of MacAlpine, CI Kurt Financial. Mr. begin. may you MacAlpine

Good welcome everyone, morning, and earnings third call. quarter to CI Financial's

Piper Jamieson; wealth he President he analyst on our joined Strategy, to Jaffray. CI me today's that, from is was managers of Jason CFO, Joining covering WisdomTree, Investor week where Prior call Jason Weyeneth. sell-side new Head asset Investor of Doug Vice at last Relations was and and a our and Relations.

to excited CI. are to We welcome Jason

select almost we despite $X.X the several from down acquisitions year excludes made have new XXXX, growth million, million, During XX% the the we on-boarding a to we a ago, our continue sales our quarter from items to an and priorities. of will basis flat best on a strategy, the our discussion year from had nearly the this quarter, or sequential down of cover call, the questions. remain focused ago. our businesses. We AUM update corporate of X% sequentially. from which our these on highlights of third date as A will controlling the for topics. execute and Comparable represents year, financial EPS review of strategic strong expenses, the rebound. your on third $X.XX expenses SG&A execution of quarter performance markets then declined on a the million SG&A another and we of for during continued and fourth or challenges We were XX% the costs quarter $XX the even a as was and of update take on an quarter, year $XX.X quarter, quarter to

to a and dynamic allocation repurchases through return reduction, debt the take that of We dividends acquisitions. capital to includes shareholders approach capital share to continue and

retired $XX shares. million to million spent we During paid $XX repurchase dividends. of $XX in we X.X and million the debt, We million quarter,

in sales which from redemptions, front, sequentially. the be results, strong continues a generated to and XX% we On year ago X% gross although sales the company increased

institutional and struggled in-house move companies teams. their as business However, our insurance mandates banks to

make executing corporate strategy. We our continue strides great to

scale which XX management completed May, our the rebranding for representing having nearly aimed the to the across billion communicating capabilities with common our with our to continue new week, expected you and marketplace We effectively initiative, the progress October. rebranding platforms the in Last our the is Tuesday firm In of or and of shares We made details New wealth wealth rollout under shared asset website in is of transactions company. U.S. $XX Stock our symbol of the AUM. CIXX. we on breadth announced Exchange. considerable efforts we to year-to-date, the depth the Trading management York CI's application next the to as announced more integrated at XXth, and begin an highlighting global cross-list our

in future in cross-listing investor shares corporate allow us U.S. expect U.S. offer RIA our We to acquisitions. the and base profile U.S., increase the to CI's dollar-denominated expand

partners. are illustrates Cabana Finally the not strategy largest, of ETF $X RIAs our in we in Group, ETFs largest firms lineup as launched launch This choosing the if our one of high-quality, U.S. history billion one of type represents target September. and of fast-growing drawdown the U.S.

review the quarter. will results financial Doug Now the for

per U.S. U.S. billion. shares to as assets reported are management, CI the year. and on acquired Core BDF up the RIAs in income in Free assets and eliminated net than and quarter. from wealth last and million SG&A SG&A. CI's with $XXX.X the AUM average $XX.X wealth assets million million management buybacks by $XXX third AUM in ago. segment X% and from increased are streamline arriving Spend SG&A at was segment the even $XXX.X Note over number, exceeded $X.X is by asset Congress average making direct quarter. in last a $XXX quarter in up the XX% a dividends the the wealth X.X on slightly And million asset continue of the is these quarter EBITDA that corporation grew for managed converting assets earnings of of debt cash to $XXX.X X.XX declined are million is market SG&A Net The gross $X.X second of down from as BDF even million. flow, decade down third and were the though quarter quarter $XXX.X last back CI's since the under it recorded clients in from quarter and this as the more bought paid gets performance under we of billion to cash management quarter moved CI's and in quarter cash flow continue wealth represent share Congress share million $XXX.X in Australia to Kurt. inter-segment I'll addition which billion in $X.X up million in the million is million separately XX% back CI last earned $XX Wealth $XXX to buying net million revenue $XX.X reported of fee up X% Canada, market reported In best in debt-to-EBITDA net segment. third assets from third to in quarter. $X.XX times. shares you, X.X total close million Net as third jumped and of Kurt. per year. management incremental from per a $XXX.X and management debt-to-EBITDA was cash was of management GSFM those up the in last we and there quarter Thank $X.XX back quarter. quarter expense assets year acquisitions up finished in by to to last million management asset share $X.XXX of increased one in income management quarter. And to adjusted $XXX to $X.X part was at quarter million ago performance. sales to this third the $X.XX, on to as ratio quarter XX% last segment. the rose from overall billion the now the billion debt and the in on million earned and the year million back Free quarterly X% revenues million third times flow $XX.X rebounded $XXX.X $XXX.X ratio of an the operations. the the acquisitions $XXX.X from and deployed million from hand was segment. quarter Earnings as is $X.XX million

Thanks, Doug.

base saw the total primarily sales institutional quarter have our discuss a XX% October. -- a I billion, large for provide sequential primarily the month asset Canadian a improvement of basis assets assets up in by X% with sales our September billion includes management our to On basis. all-time I wealth on driven year-over-year This net in and equity sales declined Canadian accounted to-date, retail net redeemed from our majority Canadian management for The categories October, of you categories, most year-to-date. of the balance the Canadian and of another update Canadian which In assets We brief of Before a in want $XXX.X in and reported assets. our the on redemptions. are for balance of industry high and XX% under improvement two a equity we CI. $XXX.X $XX three categories and flows for billion

positive we month increasingly are strategies. liquid top-selling growing On categories where front, in alternatives funds nine fixed our are market and the income important of our Two the share.

strategic the we actions an and update the the investment our stages I in a transformation I strategic initiatives. now early lead are investment on provide few on flows. changes these on better sales of of will are the our We share to will and some progress details confident our moments. in platform made will more of platform we've function that

review is which modernizing our three reminder, globalizing a strategic our a here management, asset of management As and company. quick expanding wealth are priorities

of All or priorities. strategic of our more initiatives will support these one

management First, wealth initiative. on U.S. the

Canadian three in new transactions: Houston executing women-owned a billion York based Stavis progress announced U.S. We we based & destination $X.X strategy, planning a XX financial in executives U.S. of Doyle U.S. in Bay have City days, $X.X focus we and fastest-growing corporate popular Management of have to RIA year After all believe a market. accumulated $XXX make the million Wealth RIA billion first the retirees; billion and closed, CAD building or in our a what largest is industry; Area New Cohen, the platform RIA gas will in for on Roosevelt our in servicing this with XX the Investments a momentum the Tampa billion RIA the assets continued announced the acquisition financial $XX.X oil and have RIA we based in world's past these transactions great market. U.S. alone. In

acquired In experiencing strong also addition the inorganic growth. growth, to we've are companies organic

alone, of Florida pleased with U.S. a by border. whom in well made Canadian is encouraged our we the management in have time, great more will and growing our in Cohen well the to advisory Doyle the us period positioning acquisitions have management In outlines business so shared all growth. late been on-boarded on as the three the incredibly financial south program for XXX,XXX what that location The such assets during service with in & are that of Canada to we new will our growth in XXXX. the future magnitude short have energy additions past this rolled together and Stavis of with have our holistically fact, of of be we've new adviser program. partnership In their many to where quarter, This the far such provide businesses platform have is wealth assets I strong off in resonating chart relationships north the to families progress wealth year cross-border update marketplace with management amount today. I a second out over but clients in on and our focus you I'm start on and on-boarded strategic over the program an them assets grown differentiated I'm advisers we adviser our U.S. by and continued wealth organically. In how Consistent to of this the story business our business wealth even their U.S. the compares platform. years we've August, working acquired with

interest in or these unannounced so platform XXX% experienced to information with assumptions. increase left cost we or growth some translates business on to excludes past year market billion the I in added not any our run to As improvements over asset phenomenal to sales, planned closed. to or and $XX this announced EBITDA, far improvement new current model forecast. the we've you assets days, The companies transactions, deals management clear rate annualized It wealth closing only growth this from our $XX.X this announced few the have had synergies, is can wealth million additional does that our strategic provide our or any management $XX is product XXXX. we've see, rate not year. After also will includes a two This after months which wanted go. a run impact million also recently we've profitability number but be in transactions. include I management want

period synergy We information quantify and for to to the magnitude not against impact that profitability confident is also meant executing in of opportunities our opportunity we've the shows are short growth wealth exist, forward. in prefer help a made management we It strategy. This going but meaningful guidance. give the

our our making initiative. clients on with simplifying Next, well our do rebranding update were earnings that it in Fast May our to QX we forwarding call business corporate for business on aimed streamlining planning unnecessary a I effort at complexity easier rebranding underway. you will us. our today, rebranding I is and and to corporate removing announced

updated All logos to our the ones new have this of been on page. corporate shown

that websites fully will Our ago. signage by website a we changed Financial the of couple be which has weeks transformed, rebranding new are anticipate been out and that rolled started We being QX completed with our effort XXXX. the CI

Management Asset associated to made that brands CI In function. out management I changes the CI with our investment discuss Global moving investment conjunction rebranding platform we've Finally, Asset are with our investment phasing an of the will Global integrated name. we to under boutiques Investments, Management, CI and the

investment CI boutiques. our potential organization, of the We performance, strengthening not We and taking to legacy better us are to of structure capabilities the across investment opportunity the value and these to simplifying deliver changes experience, our will capabilities the client for to offering, our platform the this collaboration full-scale foster also only clients improved communication while just improved proposition. by believe our through our not improve but positioning

while these unique. investment We changes that are make our protecting of the making us platform elements

We investment the approach lineup. or and implemented client outlining is This management funds, our associated to by are the or today not our am I investment also designed, portfolio the management on they fund changes been eliminates important changing managers changes. disruption with investment embraced platform have It follow limits note organization. that typically processes

our clients. that this model will have outcomes a deliver for better and better new investment experience Our conviction professionals full

structure in the an this slide organizational we As a changes. overview had legacy of before the place reference, provides

will the any offering competing the capabilities. snapshot our The This was by brands and our business aligned that benefits many new organizations. had to was deliver brands they You management driven for ability provides of by a boutique note generated mandates of investment slide independently. scale scale with boutique

the clients, we that organization, more outcomes, by by now like a freely information allows gaps in model would up our platform, approach leading more sub-brand. investment now open and the investment consistency address boutique deliver capability, see to investment questions. share organize I or organized CI's investment reduce objectives and full-scale are problem-solving teams. our across us organization, to our not in for new better ideally This by platform the throughout complexity will holistically create ourselves align to client-friendly in creating call capability our You to compensation

with Geoff Markets. ahead. Thank Please you. Capital [Operator from Kwan come go Instructions] The first question will RBC

Hi. Good morning.

were So now is companies on redemptions would that look right would you've and point be to And brought recent much that being in-house had that we And When think in-house at you just side some a even have AUM sub-advising future? that from of would it's in are you therefore on. some in unlikely to bringing how the that some portion retail there in-house at your mandates ballpark be? like why like be maybe be at in risk sub-advised the future? AUM would brought that you the quarters

would own insurance potential exist on capabilities Good opportunity say, morning, Geoff. have It's sized What their mandates the have a through we predict. tough internally. that sub-advised one I platforms that at-risk or owned to bank

risk that So the in redemptions to the has that And our really to total. from what percentage be ultimately will obviously, where past seems the business of the $X terms I there at range institutional assets billion $X.XX over experienced our now right believe to vast is think you'd majority move. you determine, of year. billion number probably in have then of do

remaining small, size of So what's those getting as but the standing terms of very of more current it criteria. information relates that's AUM to in total a CI little bit essentially in it’s specific

you what think then the it the able be out get pipeline rate today? RIA hit sort the you of And over on would size Thanks. like how do acquisition Like would describe next looking you just of, Okay. year? to

think we've really like momentum anything pipeline that say give as think I created I the oftentimes past It of would what building I it's don't the the to at it's I But months, remarkable. on depends. and look just the is few I guessing. if guidance over truly

a were rewind that you If in. isn't even we this segment a January to or market

do picking over about the I'm have that we're deals, The exceptional we're we platform seven fastest-growing high-quality fast is you or very able the And at we've the deals to today of ever. just past is, we months, part RIA up. firms. deals the most to If with that excited velocity doing looking forward six done believe truly

than perspective So months the story to deals were process or build I when several it now. marketplace we do can a it easier an announced tell you build in from and we process to starting lot was from momentum XX scratch. a sales M&A deals And that from is ago have

pipeline that very say I we the deals you with with I I prioritized in or are we've had at that firms look had it's about firms on with lives. few relationships basis. If having optimistic. an if we would the journey So increasing really just been the that on ongoing of I were remain first conversations started think professional prior

had their we and a their I good businesses, So working a teams rate. had relationship. their capabilities, of their understanding growth particular

in that lot radar the that space at deal couple this to working probably of of them we had just transact. or high do firms And the really was a a a a get out of we're every degree specifically. to of had in started deals working bypassing these CI a with firms fascinating them looking banks they I reaching of week with started bank deals. hit And confidence we familiarity I and now me. are next directly with process to help where do to So a the place Once tranche a a

So I we've progress made. about feel fantastic the

think I ahead schedule to initially relative would anticipated. what have of we we're

think pick differentiated resonating how I compared momentum month-by-month our marketplace currently. in to proposition the on basis. excited just continues about I'm other our to really is are well that stories And value up a

in And completing some also in it. them? why if with discussions would reason whatever type may But is pitched generally situations reasons you're way if the those are are you're to be with that actually and not could in discussions what of up again not doing is are so closing like them? you obviously do level having engagement with so then when you are may auction two you on those you deal you -- for another ask for not Maybe you I potential then when decide are or get you to acquisition

Yes.

we benefit So an of we're the I like bidder integrated in an doing auction to acquiring. of platform. process to and assumption the part some is benefits in guess the and for businesses appeal that true think there's to an offline directly. transact an you're deals given us auction want just I cross-border auction highest that's are firms the a say necessarily Others winner. that reach process would from oftentimes the not I there's particularly, that the process are just some participating. are collaboration with out CI if platform an and operate the of basis. businesses we're stay referrals. on They want around businesses And national to People an that scale ultimately don't see They ongoing these of

we So that we are vast to the be winning of auctions are fortunate enough in. majority

are really I not proposition our bidder differentiating it's but We that's that we feedback the are highest ourselves. think getting necessarily these on value

of for independently. we're the personal reasons, financial which do liquidity in retirement the It ultimately what will private and we a events, or really U.S. collectively leading to that are reasons teams that. to from we terms to trying businesses, pass together a all on for doesn't to working platforms it. benefit to of choose looking initiate presented platform high-quality we're that working pass in that to management build, In feel to Oftentimes, wealth all benefit as And absolutely will dynamic we and profitability is great and transactions fine us really well-run firms regards opposed just when get will lot initiate they fit those like something

So, pass a we do lot.

it's to excited we because we're management. human the reasons that want capital cultural for that and lot people These and and with. critically ultimately we individuals about a important sure asset passed management all also we're partnering make in think businesses We are wealth

BMO next Capital. question. Tom MacKinnon you go come the from will The Thank question Please ahead. with for

much. very thanks Yes,

mentioned And what this that $X.XX to just margins following business. that got you Just billion share assume would institutional on the that that billion us, maybe low $X be is earlier. on follow-up. Maybe a can just margin. I you with on I've

Sure.

lower the $X the see be at is not could But on margins as I mentioned than potentially So might yes, $X.X be, margin. business are priced. billion dynamically billion The to typically be. out what institutional the we it we would on risk. is Tom, we what It don't break It retail. more determined might

a range is within there So, of pricing it.

So, because, here's depends strategy, the not mandate, things really upon say platform that. specific number easy the it and the to like size it's the

with result this? impact any of brand then, to there is respect And on the SG&A a initiative, the as

so marketing and are currently operating mean, our spend. think, -- I Not essentially are we much. I we redeploying

we're I we're you initiatives areas really time, So essentially that overall, trying things doing focusing over more made to -- SG&A experiencing businesses reductions that is some are of and We're think redesigning redeploying our website rightsize have growth do that digital. or business. would the areas. to SG&A declined are to declines our growth what anticipate different on about we've the to when and

Our self-funding over to done existing we've say a on bit evolves business the go-forward spend the But time base. expense may depending basis we've not initiative marketing today. date, something a marketing to on little that's expense within this more but been essentially it's not how that we

question. The Canaccord. Please the question will with Thank come Scott ahead. go from Chan you for next

morning. management to the the RIA quantify I how on million. the from wealth EBITDA progression of that Good On a U.S. million to the year-to-date get -- from much that you sense line $XX traction? comes Can guess $XX slide,

as the We a are other a Scott. look But numbers. line, what quarter, break are portion disclosed we've last we if was few quarter, what in of in don't not It's you this businesses. at Aligned disclosed the quarter, quarter, this smaller out they specific last

not that So, it on panning meaningful stand-alone a business profitable a or portion is is of a the It majority basis. number.

announced in would XX the transactions be the number? days, three in that included last And that you

Yes. It is.

Okay.

so it quarter, plus combination be Bowling those the in announced So, would transactions, Aligned. three of we earlier plus four which the the

provide initiative. a And guess learning if back the sales to on could I model. machine I analytics just process, about I on was early that talked progress Kurt, marketing guess you going And you update an wondering, or

Sure.

what be rolled on or referencing. believe asset just Canadian Scott we model learning is is might the not with rolled management. out So others that sales we in familiar first reference out predictive machine for for marketing We for wealth call and algorithm -- Canada's what process the first and

the So, essentially there. course the started from has that rolled March and in the we over initial We out to of build model built winter. it

of and month model gets every the the detailed. smarter inputs from of more we various essentially, So and capture levels all engagement

all as been and some have in the receiving of using But off we sales earlier, initial we're that we're campaign doing our being based sales up to our we're led today of from territories. that model e-mail insights responses model a are using to point. the marketing campaigns. of our digital instead campaigns, reposition has insights campaigns the series from mentioned transforming and a campaign, structure model. starting So it I we're the of sequential from a re-cut that set the particular function and of that our actually the process us It of one-and-done has informed

insights the our very So, how and has in identify been territories. by terms set ultimately in and by prioritize very campaigns well of I it I've sales using team opportunities it's been embraced the marketing that models would early our embraced to we're team really building. days. up say I've still pleased model, has and very to the of Scott, pleased how structure engagement And all well their the

Ho will Please The with from Thank you the Gary question Desjardins go question. ahead. Market. next Capital come for

bit. million XX little good slide clear, but as to EBITDA. that where well, was question you want Thanks just wealthy in maybe Kurt, a go And to to on be morning. just acquisitions RIA had Scott's the it the and back $XX U.S.

such were the that this Roosevelt week does that as the acquisitions are So announced, announced earlier but last the acquisitions week? not or include that closed Doyle

just trying reason economic more quickly important business we're balance. to does. do of from we're management And Yes. this It is the and all to Scott, our to what is, profits relatively coming transforming asset clarify obviously Gary from our

we to and these for provide is roadmap through and investors how business finalize announce evolving. goal acquisitions, our as So essentially is work with our a the

show to these on basis slides our can it ongoing will So journey two to on. intent you an that you the is really – chart and we're continue

of is That I the roughly helpful. leads up closed RIA kind purchase acquisition to that on you to million price statement question, financial is U.S. $XXX of September. your the think the And which that's for second disclosed me

includes contingent that the the payment. and think consideration I cash

think So slide go EBITDA last $XXX contribution to I that's the pieces that are I'm where million million you quarter if the there I back related so had to same acquisitions? to lift $XX missing two those EBITDA am wrong that Or numbers? the in

it's say, Gary. right directionally in the I'd direction,

my not there's that shared, more think I pre-synergies be bit to probably continue there a we've everything share we'll provide just and that will than guidance plus projections. little given preference to go-forward or

Thank question Graham the will question. Ryding ahead. you Please Securities. come from The for go next TD with

morning. Good Hi.

do using this this at issuing two flow Just to RIA Can times start level equity keep just acquisitions? without over acquisitions your free sustaining looking at how you if going run this of do Or equity? rate current you your in leverage a about you're cash some run to rate, are point, of need feeling going bit? you

run terms upon rate. it's of acquisitions hard current the in So run Graham, to the based predict go-forward current rate,

very knows to coming capital upon everyone And or market, our lumpy. of As approach price then itself is been do I share and would those to dynamic. slow that are it undervalued. quality the in platforms and allocation really depends is our think processes has how say We quite significantly fast that overall ultimately M&A move. of

since I've last approximately back bought September shares. we joined million XX So

bit by our to and our a short the subsequent as a M&A of leverage market, the our was did and just feel months, acquisitions. high over markets then in height the million bit have and the And we we to relative little the During comfort the reduced credit more in as we've redeploying. resonate, zone, has leaned to improved story pandemic, little continued order revolver $XXX by

our the we would listing is as I York we it of something say what free there's reduce the types cash stock do at to would flow multiple New time. of part ourselves decided consider Exchange So the we're to is accretively reasons But that is, next New we that, monitoring. week. price something Stock which can it would that Stock the on using purchase To effective in say list that, point Exchange transactions, our use on we're this these York I extent can obligations.

the more is as interest reasons take the guess, the from RIAs to it One of part – I transaction. minor stock upon of based ability call

we that, So but do. very disciplined it is a when lever they in it use, we'll do a manner could

this management look But performance driving Okay. does surfacing of to boutiques. when investment opposed be fund like seem different is lot an your on the across to streamline cost as Understood. lineup? to fund about and then there Is your teams, opportunity there fund it legacy sounds And the overlap of to integration more you continue a process synergies.

will constantly over I the the the but it's of effort. time, to do really that focus CI. challenge complex and be that, we challenging mean, get from was would biggest There wasn't business with feedback clients

multi-brand structure I'd until or So perfectly the years was, say the ago. six boutique for five and designed marketplace up

the benefits it own would was that of those about, corporate And the platforms exclusive changed are pushed where those of well, some ultimately prioritizing of lot the have at strategy. which we dynamics distribution that point to partnerships distribution changes a exclusive class distribution had of through their that the then been come business the of coming bank-owned have lot marketplace, So the arrangements if to? A question of time, think in class the distribution you CI corporate businesses CI. the nature of some was

platform. our to So needed we evolve investor

environment. that create doing had advisers – with in client first do we're been historically to simplify to were that we and today's experience business better off it feedback receive based So upon constantly hard better from just to

that – we had deliver structured individual platforms scale able only businesses But when billion at the boutique our our individual The we're you to we company. at a way, second $XXX is the investment level. were we thing look the

like total to So of Global had Asset Harbour the an prior benefits Harbour model, that. Under is in example. as part deliver to week ability billion current resources things that management this $X from the $X partnership, of model scale. the to better take CI billion scale, broader access business old Harbour the and to

up, time been model a reason of redundant process, wasn't you overlapping this and hasn't the far. are focus might through we we lot right, capabilities and initiated clear so So over for the which that we had, a naturally legacy have it but us themselves

better effort. at to a as our if through consolidation, ultimately cost-cutting investment at all there's experience would better naturally will we client to look opportunities across deliver work businesses. it's experience look It's right, something as we performance. we you're But a designed and So a not through it, better it's deliver opportunities

Okay, great.

last if maybe one could. Just one I

move flows? longer on to are the to Asset management process the do where being needle the the you opportunity a perhaps And biggest flows, where ship effort see you seeing turn around?

Yeah.

think us biggest for opportunity is I really two-fold. the

of advisers products we're one first selling in that the is to. segments The

have industry a MFDA legacy historically, So sit with advisers for our assets lot of extended been time. that flows in period of and the an

So, they may to transitioning may lifestyle be business. transitioning of not more or practices be growing they out the their businesses,

and very for there And say Alternatives. we've a basis. important with I a I category. in share area that our pivot fast parts and the our made balanced Liquid lot off on is team growing below and I struck job layers number to the the think really and fixed look nice we're DoubleLine about So that surface a would we've couple we start we're flows, success at very mix shifting the a go-forward done the when of income a be believe to has very great early to that in have IIROC. business other one the relationship our more and experienced excite in And still flows really market MFDA of I IIROC most the me that one excitement between business; the that I that of

what vulnerabilities, I'd vulnerabilities to vulnerabilities pivot think in I'm excited say that I that's remain most the currently the the so have. those about the particular categories. we say would I IIROC

be that been concentration We are Canadian have typically of in be additional of as a business And their mode retirements. some I advisers MFDA tend not through them Canadian breakdown. mentioned, growth their in the natural funds have businesses. guidance balanced a redeemed equity and to did and industry in very those, the holding institutional advisers I are in older as as the on high they that share that on that higher clients might that mode navigate concentration redemption result, are categories

quarters rates to virtually have platforms those is of I that assets continue. a seen of in-house, likely upon redemptions, experienced essentially insurance-owned size moving that it of a just bank based is come thing. the continued and likely So moved mentioned, lumpy before. pool a size of of specifically the the as assets, those less all doing was what today on we've while have and couple from business to we The go-forward redemption are what's team in-house smaller Therefore an than already basis the of that same lot

made put and look plus the front, really optimistic we've integrated. redemptions forward. to to re-platforming you the product the to holistically it I on better path of our more Liquid of am lineup sales made at going we're ourselves when the the through investment organization we've combination DoubleLine the that enhancements and work the and pivots make So modern through the on a Alternatives

The question Markets. from will Please Kwan Capital you. Geoff ahead. Thank RBC with come go next

is that Just would describe but as your asset the for other can M&A managements you what is your or a business, follow-up complementary view strategy? you on businesses outside being wealth appetite growth to M&A of

Sure.

our focus So wealth think I benefit and the management I on would business, really singular our part industry. of say the of is our business asset

us it's against outlined. approach. versus we in two really different a you asset would doing that aligned you three management, those strategic M&A be any that see had wealth about management the one priorities So of and areas M&A would When think

scale, think to the the $XX.X RIA not, create in platforms so close. we I we're currently. our really There management, are RIA lot we're -- because few If in us have billion the So far. of And for largest wealth pretty of of U.S. five fragmentation platform for a of very do one only order to marketplace acquisitions. is the integrated

wealth given where scale ability management doesn't we're focused, to buy So and the really exist.

make So transactions. think acquisitions levels expansions. be will would CI. One asset consistent our series probably management two capability ability of there's be When a to potentially sense get to of you would about types function much for acquisitions, asset a that of larger

there some that -- And have to So now something and that. gaps we example investment integrated us consistency, have this platform we an we could in or acquire continue our clarity as for as platform. opportunities we specialized be do have where like capabilities alternatives,

opportunity the opportunity could The beyond type diversify of exist would be marketplace. to for other Canadian that us an

have platform something where asset in that. you management embedded and transactions, do the and larger smaller a wealth like approvals institutional can platform in marketplace relationships, pivot would just diversify because extend really management through unlike has Canadian that were nature you you to to you Now coverage, have if to retail need beyond things

small platform build build asset acquisitions via a So platform can't small you large essentially a and management. or

So the approach would be different.

a would of we say wealth far down RIA in either straight don't already that capabilities -- the in to footprint been us has have the do to we that the deal, done space. If acquire in. we sorry velocity be market focus So you'll we're I a we're on a already acquisitions the management capability think were doubling or it markets present have would management clearly doing asset so in. scale an deals to that management see asset to expand we've deal currently given don't in I not wealth

very does And look that you? side, that's you? helpful. asset on but Obviously, Is -- does landscape the so for a management active side. Is priority? And is that that prioritize how been for how well that the on you're wealth something that

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Gary for Please ahead. next Ho you The Capital go . will question. Thank the from with question come Markets. Desjardin

Thanks.

Just one follow-up.

Did might at to institutional on be Just I at that or to AUM difference and at $XX going not point back $X AUM the what's that I billion thought And between the billion, the number billion $X.XX one the billion. comment risk to institutional that $XX at your remember institutional was correctly? that risk?

Sure.

different having once again three is And Gary business what probably, institutional I of depends, breakdown When business. I'd look you're it based when upon overall there's on chunks a was So platform. speculation of a conversation. at that our the the say

institutional So is essentially those I themselves that institutional our business traditional would have owners and capabilities asset say part of don't internally.

are like foundations, endowments, things they small and So pensions that.

by mandates competing to part of institutional really been have space, then sub-advisory to pieces. that is by broken working firms sub-advisory specifically that funds be which mandates, Sub-advisory to then plans. business be own The would typically And and second find have into our would part the institutional with have us employers that the been third mandates business that on our contribution their capabilities outsourced retirement two internally outsourced us of don't.

redeems. it that on I'm was we mentioning the institutional business institutional in too as of to past business all segments to us size have for to dollar other that's and scenario the our total and has the us that's and own space between. a retirement of of to the institutional a stands of that the little wasn't traditional is possibility working that has reiterate linked also looking contribution mandates looking There's There as flat at an well defined new over wasn't our area to continue scenario or I and platforms for to There we're we of every their assets now space grow. the the today And also relatively the it none institutional redemptions. scenario the percentage number isolating where have just head relatively grow been or and the capabilities for business been and to planned sub-advisory and flat So redeems grow tied internally. business. that have bank it. where insurance in That while is It of shrink.

responding So the question institutional do what the the assets provide breakdown to the segment particular was to that in and the into to was of I trying assigning or sub-segment. visibility

$XX the of $XX And three billion total the I correct if to estimate? the I in am take segments, billion

me, front have don't I You're you're around number there. Yes. exact in in but the ballpark. of the

Got Okay. you. it. Thank

Thank Capital. question with Please go will you. ahead. BMO next come from MacKinnon Tom The

in you RIAs to what U.S. I table respect don't? doing listed to bring could do one this competitors they compare that to your say model certainly much. differentiates at you competitor. on there's with strategy? very wonder If what I What embark here business as you and know the Thanks the look we But you if Yes. publicly you're

Sure.

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us entering the for was something for marketplace. do higher important differentiated and us to really exists than in bar the obviously, So very what it was

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asset side. as structured the much very So a like management wealth but almost multi-boutique on manager,

So they're and the of a freestanding some business on the allowing to to operate continue form taking basis. business stake independent in

of extreme the one spectrum. kind that's of So end

is a platform and with your platform. be about everything other change that they'll And into you aggregators firms fit their that. the something are called serial that and of which aggregators end have fit with the there or transact do like platforms a will may conditions mold or you essentially spectrum deal On this terms by integrator to few you to the that but need you

right come come of of where look in ex-CI space we in middle. now money dollar if I'd top in is in the you $X.XX the say is the equity we private marketplace, that at So And the -- private then around on on related. equity somewhere or

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That's great.

So if capital. I be summarize, platform integrated permanent those Would it seems to an be… and

Yeah.

Yeah? Okay.

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Doyle Management, wealth very take the the unique biggest they for If planning advanced Wealth than tax hotbeds estate typical management and period. Area which includes retirement the is And a greater one have Bay you approach of more retirees' Tampa probably that's Canadian platform.

acquired, So as we're by opposed platforms while best to leveraging a of of already that to the all what exists. do platform the on pushing they integrating, of them to best the going get we've

Thanks color. right. the All for

Yeah.

you. Thank

have over We at this speakers. conference our further I'll no back the time. turn to questions

Thank look you time in interest We today. the connecting all to for next We Financial. quarter. CI the forward appreciate