CIXX - Earnings call transcript Q1 2022

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Operator

Good morning and welcome to the CI Financial First Quarter 2022 Earnings Call. My name is Brika, and I'll be today's event specialist. There will be a question-and-answer session today. [Operator Instructions].

Your host for today's call will Kurt MacAlpine, CEO of CI Financial. you're when ahead go ready. Please

Kurt MacAlpine

and Good Quarter CI First to Call. morning, everyone, Earnings Financials welcome

strategy. Joining of call a April, month on of update will execution highlights me on the the the an our cover our Together Amit of take select your Then to-date the of the update we financial Muni. our performance we on following quarter. a sales will of topics quarter discussion corporate during the is of items review our An CFO, the for questions.

and Before the is I discuss Resources a employee I take of history. moment Head acknowledge highlights and who challenges, Blair, CI's wanted standing longest in Lorraine to the Human to our

in over will much-deserved our XXXX. to a On employees summer. impact the transitioning She to the incredible contributions joining she's be retirement that has and made for generated Lorraine shareholders. incredible since our company

our and and On in put the established place programs. engagement and our diversity processes, front, leads learning she employee inclusion our employee team hiring the launched efforts has development

diversification results The first I for evident Resources shareholder the she for Team our resiliency from you businesses. On are Executive Manisha model as Resources and to and where Human member behalf our advice was replaced volatility Head a who has extreme and Human acquisitions. integrating and in of BMO. amidst Client market CI valued in quarter of the Head well uncertainty. you to Upon benefits we business Markets of our by provided Burman, the On of International economic backdrop Financial, their Strategies Officer she and will Experience of retirement. our joining and involved of thank previously EVP efforts the be CI's of Chief Capital Wealth Workforce and was of all your actively as and Lorraine contributions front, in wish wanted CI company, the retiring is

despite sequentially, equity down markets. of Our fixed income adjusted was the and both declines EPS $X.XX $X.XX in

CIPW, of EPS prior a $X.XX XXX the However, and comparable deployed flow towards for excluding years. record wealth company a result the plus increased two on record a have we've basis, past Free to of direct would the was of the management of cash the $X.XX. million, or a high-quality X.X% launch share per over from impact capital firms from the quarter

We the wide shares to quarter. at of were capital Despite in end to allocation. environment, focused dynamic continue of continued taking debt, reducing in wealth also Canadian back buying share challenging we of from disconnect businesses. by is on what a very and a approach deployment our capital firm back positive market price our both the QX strength U.S. while net the flows We a believe take towards advantage our

digging management net and the asset were our in tactical rising rapidly While worth rates. gold, is redemptions, its income driven and little segment it Outflows quarter. deeper the interest a strategies to understand experienced as cryptocurrencies and dynamics such products fixed by flow

saw management, up fund of of compared the believe of extreme as quarter we've why our nearly periods to transformation which volatility. improvements highlights nearly absent turnaround that structural also we've This business first sustainable, complete the result is This mutual made the under of year. assets XXXX is a outflows to net Our our in we market XX% undertook. flow makes the platform, declined segment XX% last

our to strategic make continue priorities. We progress three against

a the they it EPS $X.XX comparable XXX and shows we the have in we strategy, approximately the As quarter by our from launched on equity partnership business. did the to although demand successfully partners their CIPW call, in in have last ownership discussed Overwhelming our January in U.S. conviction on partners increase basis. the reduce our

to best IPO strategic intention to is to financial our of Finally, the of business. turn We the this about unlocking strategic a U.S. options. wealth our results. a that our subsidiary our we to After over route Amit retaining call a concluded review evaluation I'll now ago, announced shareholder pursue thorough month while flexibility. long-term value

Amit Muni

everyone. Thank you, Kurt and good morning

Turning to Slide four.

Our XXX first Negative operating is segments. overall segments. positive ended in where assets in three the are the quarter we've firm sentiment market global offset the wide the at wealth quarter flow particularly in had reporting we This billion. quarter, the

As a U.S. Management Management. management, Wealth Wealth Canada and

it our to reformatted our make understand In results. statement income addition, financial easier we have to

provided the We additional segments. operating data on have also three

website. Additional historical information is available IR section our of on the

walk on my our the comments I I'll a Adjusted million quarter. to net next income high earnings for XXX QX. as adjusted at the results Turning through in slide, focus was the level,

this million effect end from of XX that the closed several year. quarter full acquisitions benefited earnings Our quarter last of the at

are forma Our tax rate XX.X% approximately as earnings generated being Management pro our segment. of operating declined by to more Wealth our U.S.

expenses additional taxes We seasonal in first lower periods. payroll future to payments in bonus to related expect quarter. this rate due We the to had continue

addition, for to revenue quarter with allow ownership consistent in X.X million, pricing decision by strategic three market sales fair I additional costs X that income quarter, a other partners per to segments. days last our basis adjusted roughly we And the to quarter. $X.XX our forma at giving XXX XXX pro unit or million million. days us net net existing due our reduced million we less as share, compared which overwhelming to operating declined first business, lastly, for two the a per earnings for In On of of now revenue quarter. from share. the last our demand value Due CIPW, or the $X.XX lost $X.XX income to comparable made drivers was in fully highlight for will

slide. Turning to next the

due revenues declined markets and Management Asset to net outflows. negative

increase due the benefited client in Our Canada segment an wealth number from transactional of fees accounts. RRSP season, to

at launch the business additional the January by increased revenues segment to acquisitions. the owned million primarily owners revenues CIPW X primarily wealth were quarter. to full revenues the partners. effect and minority of the which purchases Non-controlling U.S. due the on quarter the Our increased Adjusted interests, XXX due represents by for of

increased comparable Slide. due year Turning to acquisitions total by expenses due capital our the increased to payouts on dealer million to basis, expenses fully Expenses and higher XXX of higher due resulting wealth adjusted Canada the Slide XX effect slightly expenses a our end can expenses total of fee SG&A in we review segment. On from revenues quarter to full On eight, million. priorities. next

million We in flows quarter. generate of strong continue XXX to the cash

last year. our closings transaction due at we we of end on As stated our last buybacks call, paused the to the

to as XX well This million reducing XXX million. deployed quarter, buybacks, as we debt by

review net next we the debt end the billion Xx on to we approximately adjusted X.X of X.X basis, leverage and our debt of quarter, At gross And the net EBITDA. billion leverage. our a basis. our a quarter was can based Turning on annualized on or had Slide, first outstanding

to we we the reduced from businesses generate we acquired, as over debt deleverage expect as well earnings as time have as We have demonstrated.

in stock establishment the recognized award of additionally, I'll we a and the a nuances units our because context, understand an increase and with that this units you expense be liability in or has rules put a which ultimately value it compensation operating fair accounting period. higher turning the increased of to for based explain AUM, will vesting equity The once will profitability The awards end, majority. CIPW expense the as value of to the units, quarter employee. recorded liability, benefits vested. margins, the the our of the expense charge accounting holders liquidity a that reflecting which the the predefined CIPW means in recognize have Each fair of to better granted not that the over change CIPW to an the vested on help help terms To is as financials. CIPW Now as liability slide, fair all of formula. compensation into of related Because SG&A associated will valuation are features next how CI value of flows value be in

to through interest compensation classified any or non-controlling is holders, which for the recognition we make addition, In SG&A. flows also unit as expense distributions

we out see accounting backed our have adjusted comparability Thank of you charges understanding these to in As and financial results. for allow you. can results, better our

to the turn call me let Now, back Kurt.

Kurt MacAlpine

Thank recap XX provides you, corporate our priorities. of strategic a Amit. Slide

individuals S&P month. investors years, down X% it as global over I've to nearly investors made we've many and a pivoting we've position having to investment an surprisingly, the products by XX will growth. calls series When for on I of from put worst begin to previous at X% falling redeem bonds believe platform to Not collaboratively us changes that between shifting that run about length X% from money in favor changes a boutiques during team. settle, in funds With by platform, integrated in management the the and our cash. on April flows, markets puts back its talked work, significant and the funds competing made pressure the to run of that strategic

As and on discuss understand I private address on more efficiency detail to our meaningful navigate and Slide, you opportunities impact markets it direct, to performance and ESG a will on CI it that positioned and clients upcoming investment see immediate an easier has had in much us collectively, will for this tax makes around call.

towards net ultra to leading management our platform aspiration worth net high achieving continue progress worth wealth of make US.. the and the We significant high having in

attracting and growth to our and underway rates, initiatives integrated organic our continue broaden relationships associated at of number But to under highlight realize won't the a our platform. I initiatives Having lead a XXXX benefits have couple scale offering efforts approach the service Julie On We initiatives. help being tax launched and we've which like an late In with modeling. few we CIPW us on this and fully marketing over is made experience client digital to deepen through into new strong by advanced function clients of across analytics all did for this functions I unified page. and the centralized key year. last clients, we talk on formally want that a and everything months progress year. enhancing CI implement the only us accelerate our powered tax client returns our Marketing Officer. completed the we allows rebranding predictive program, our structure generation Chief Despite Silcox,

started this to to announced increases efficiency, improve towards intentions a grows. Also to a we've expect in Dakota coming To considerably Trust adoption the scale creating our operational We this week, our unified years platform. progress our make and earlier we as South Company. launch platform

benefits have election transitioned HR, As and learning hiring partner and centralized functions process. will payroll a within like head of a hired and and to have employees oversee an new who example, annual our we've our enhanced program development

still some to for Earlier of Despite quality this and on our two the Canadian by touch the important EBITDA we Assante and of years, structural I the over coming four shareholders. the wealth are aspirations unified under of Etherington, platform great appreciated management approach quickly. to President making will very billion Canadian our in collaborative everyone by us yet clients, is of shareholders. Sean is our XXX% into growing business also Capital has the the that see so organized to that our former taken. in President increasing Chris and year, testament We I platform people have but the it's we're wealth our by that meaningful that together believe the Enright, strategic not past Aligned have joined that business to a former verticals. platform the this a This advisors early achieving and business stages a management and believe is $XX our and want changes impact I have

approach integrated CI. to all recruiting us advisors position our to in a now to candidates where puts new transition to come Our looking

with This customization XXX systems centralized additional a associated model business operations each multiple to or on we've to technology wealth eliminating directly us one of platform, vendors. end focus will made CI which use will creating capacity, and businesses created clients. in system Services with are And we having and archetype. the have to We offer and investments service Investor our world-class the plus allow for billion duplication

wide we've for we and much will in wealth and to growth. As confident hard ever significant that continue I is value been firm stronger, Canadian grow than is think CI to this I unlock it's shareholders. our our our that earnings, performance To financial and diversified summarize, reflected business CI more we increase balanced in organic argue am business a

all of we While I still positioned continued we your With what believe up that, are the inning hope of the first for call questions. to in businesses. we for will open are well accomplish, success in our we

Operator

Thank you.

Kwan the now from Geoff RBC with first begin have We the [Operator will Capital Instructions] Markets. question-and-answer session. We question our phone line on

is line Your open.

Geoff Kwan

given been more terms a deleveraging it sense back any make ability recently, where but the more stock doesn't share that maybe things been to Kurt halted doesn't buybacks. or of see your morning. allocation capital sense the maybe share you've know expansion. you've to just Hi, maybe price make through temporarily even allow good I our of like standpoint, would And from to. that margin create capital has buying declined better strategy shifting and towards down even acquisitions value shareholder slow investors pace to in

Kurt MacAlpine

Sure.

So, we discussed, dynamic Geoff, our we've take as capital approach do a allocation. to

disconnect QX was on coming And comfortable to reduction us then ramp we the to seen to got So the price our we with, criminal share a is which often as we share With blackout delevering the at. out outstanding. that next value of and started buybacks. level to in advantage entirely days, of and that trading we up the the refer where intend given focused a you've when debt take in today, were between of our we're as company price couple I

it until very acquisitions, we've this of unusual close said year, won't As year, the QX. I've relates a was two in to one all transactions U.S. announced along, RA XXXX which as

the we've around -- of the acquisitions surface that absolutely slowed pace the really the integrating, platform. on touched in scratched integration on had we've focused are down So the I just

M&A think this as slower your as to and yes, I say, are So long buy a back year the points made question, I've acquisitions exists. as disconnect before, reinforcing for I'd certainly intending this well. we continue And, is to answer shares,

Geoff Kwan

last And just the flow to trends not it particularly your or over on in got has I active far to the activity, second seeing, so, seeing in have you comments the Okay. month little May, or the saw, asset you're so if gotten Canadian just any specific strategies? retail or management you that worse? a able was, question respect of maybe Are with a same flows the general market bit you're my better, provide number, sort guess,

Kurt MacAlpine

be quarters. to So consistent to with going not I'm comment just May on prior

bond to Just believe, decline I then the specifically, on, War a since talk significant worst touched in about prices very and II, you and April, as World April, as I had well.

challenging market money So investors for work. that to a was environment put to

But in from that separate enhancements performance the peers. volatility provide that more investment upon a the they're the and based we'll buy know, made end June, we it couple we've impact of visibility performance I like immediate often important shows products platform, our obviously, you to May think our the So on And quarter there's a and structural is the market in investment results and when to release flows changes our to slide receiving. in that relative as months. our on the presentation investors improvement temporary

the flow offering, to new I put launched So to that through of like products our poised feel simplification capital are well work. we've to willing are when that the very investors we

Geoff Kwan

you. Thank Okay.

Operator

Kyle from from question next KBW. The Geoff. comes you, Voigt Thank

Your line is open.

KyleVoigt

talk kind have to company has just kind going what them is helpful. the balance on public about from proper? of USRA been going a the the be strategy, that the of would how of the announcement essentially, to RA part of funded to the the you of that just kind No, bit I of it in really kind can the from factors how new be there the CI, this IPO. Can push kind much. the pull few be you new of And CI acquisition in split you private When really Maybe kind was from it is on any reception questions plan. sheet? don't down be principles wealth? and that going response between came And talk on and and of debt, cash any cash shareholders part terms of company will a to just you then little the how the that's of IPO, are think -- a logistics just about, And fruition? had the very the Thank

Kurt MacAlpine

Sure.

follow back try a sequentially. And on me anything, to circle please if let So miss up. I take them

for quality very hopefully, believe decision-making the I the was simple. and investors confident based So process upon of business, the think actually was growth We are organic fee the we've generating, rates that and as -- relatively the valued achieved, incredibly that that see constructed. business, an we we've valued the a IPO that we're shareholders, valuable assembled isn't being capture our have we're currently business by

how that with the was will conversations and to series keeping while maximizing we board a business the around, the best over this great associated So going build forward. and unlock having flexibility we all of value months, our benefits strategic continue the for do built shareholders,

that the So the the path felt said provides process and confident, forward is strategic we flexibility. was that us maximum XXX% and this it us I decision-making for like best

In it's receptivity positive. partners, our terms of by been incredibly

it's, as think where no and that's assets XXXX, started and enough I enough, in Everyone part it's have fast U.S., were its to we business large a public with company, we as now of a private partnership knowing came own on unique really profitable his I mentioned enough we public growing before, the CI circumstances inside of stand anyway. a our company. to of as public set

that any really a really of Financial, new that's of or of whether difference inside -- partnership sits company So to CI them, make doesn't inside specifically. a

but it leverage or us comes in we or the of whenever I'd your fund not be the excitement. public company future. shares with newly with And to say to forward, of of able have And ways on really provides as shares of to that toolkit lot it. we'll a This relates going that pursuing our cash partnership, a positive market in we questions our more So M&A. couple lot tools also to today, acquisitions then very about traded reception, only as acquisitions, just different fund a think

actually lot So for clarity positions does we shareholders. think a us our it more it success. And provide better for

So growing be income, U.S. exist in doesn't Wealth you that interested forcing take if shareholders fast think that segment Management today our exposure business to is market even them might Canada. about with we're business, a of in the a our value-oriented which really to

if we're of inverse, that the marketplace, management. of that EBITDA exposure On the to investor, wealth of that's U.S. in advantage millions to strategy looking of you're we're asset to Canadian in pursuing you and take dollars forcing hundreds take a

these alone, evolve as the get businesses, business company public allow but So and to us continue to separation to the the us a of each we standing platform. our give think give two -- that us appreciation will also grow a more lot tools of

KyleVoigt

Great.

I all you almost on them. hit think of

debt Just a will public the on work follow-up debt assigned it MCI IPO. between company free. that one of relationship of the public will and to the be new or kind company, how Will have structure the of

Amit Muni

Kyle, Amit. to a have Hey, It's it's early those little discussions.

file for comments So obviously when on to a of the that. make us will be little but ready SX that bit all we're in it, premature when we

Operator

now Thank Chan We Canaccord. you, Scott Kyle. have with

is line open. now Your

Scott Chan

CIPW? USRA entities? follow what multiples, new a like obviously, a on markets current start And perhaps to side valuations to up seeing the private -- there's Maybe have the been versus the two those it disconnect value on valuations the comment seems respect those on maybe on and you're of with widening And public impacted.

Kurt MacAlpine

Sure.

how appears would misunderstanding a I multiples market transaction. to there public be think I versus work So between private say

the are to contraction private in that transact baseline the which experience by decline when you proportionately multiples multiples the valued the at markets. the multiple assume by these So see we've that what transactions, in to both public it's which EBITDA markets in fair businesses contracts market seen, they the in public

have imagine. around there private that out seen quite held could market those just that and there's multiples So a while up you processes I this in markets belief bit have multiples being I contract really can you tell think contracted in public involved lockstep. as We've

what private and the markets between the seeing relates businesses. in play we're difference as these play in public to M&A out real no it out what there's markets, seeing of we're So

Scott Chan

line that with much holding of leverage upside that How these leverage, leverage, operating And declining, are specifically the USRA. and almost up of in your the asset assets lot management, using EBITDA like the operating a relatively all are is meaning operating there's is with less if assets. in the on downside management, businesses instead

Kurt MacAlpine

you about great two it's so a I if you question, about asset Yes. think Scott, business, mean, think components. the if in there's management

So years. let's the right, an it's April, S&P take example, just -- April worst worst the for plus as month XX and

two So right. people and redeemed declined, markets things strategies, happened,

get of more the we're operating our typically, So and business to opportunities work. people creates management the only That in exists on because capital upside to it and portfolio. for essentially the leverage, markets client's put negative increase portion running asset

and of an our money somebody institution else worsen, advisor switch a and the catalyst market, out we markets, not In advisors. and variety both of business, as for down. investment experienced products. up of strengthen people either consultant work putting typically wealth So or and different to absolutely that's asset impacts a is to in their the But

people of to level asset have way management. the mentioned, we as positive upside, work necessarily faster. make a our leverage on in the in an you exist more management on business But that doesn't wealth management bit as counter, money operating put little get on asset the you a the inherent bit same on So in stability little

we conditions. that's linked and economically provide businesses mean, diversification do asset one beauty nice provide, and market of between Canada U.S. while the a they strategic now that or do management management to synergies, of market the stressful accelerating counterbalance they're wealth both I have and the another and lot So have having they in a is

Scott Chan

relative just its so overall, ETF to that But wondering other your pretty ETF the in relative mutual platform. up of ETFs you've industry. to like flows Okay. last, kind of the then of platform, kind of well, to was besides funds, have if terms impacted called flows I'm year-to-date. out And ETF And funds just it's stuff, Kurt, how trending it kind the thematic are on looking [indiscernible] holding perhaps

Kurt MacAlpine

would where platform been say we've that the nature I mentioned, anticipate that that to Taking very platform well, we'll, of investments for the have the covered positioned. our even The course settles, been years I of strategies, absolutely strategies. in to relative people marketplace. us floating class very like call an destroyed advantage And more as or to market we've mover seeing whenever have over the opportunities couple and buying made over in strategies. demand people first strategies into people of past positioned tactical for first think up any ETF has the -- asset in that redeemed crypto We're the more market that's virtually rate the crypto create think our I've is I past several sell held I development moved the product lot to in now products environments. months, product our well we'll a People allocated funds funds, and the those

that strategies, believe have So when we people globally, established in come how money into when putting now that capture with will that market, awareness a in that well, are as I I you positioned funds people amount is back look those disproportionate assume well whenever we lowest flows back cost when crypto the of to awesome. scale, products those ticker at the are we work

Operator

Ryding have ready. go of you're TD you. ahead Thank We now Graham Please when Securities.

Graham Ryding

Canadian a is right? at, branding that is Like, different going on is aligned I you're CI looking then, going anything tried You've side? looking sounds a Yes, the secondly got platform, And know, really Asante side? the asset do anything be first management wealth On the the question, from brands that you're you that overall, the of wealth branding the you're the particularly there to in perspective? side? front, to forward. Is few Canadian business more recruiting coordinate there active be on would like it like, wealth on my to

Kurt MacAlpine

Yes.

I say. would So

the having looking is unified So wealth anticipate yes, to management, looking a doing efforts, I to opposed team think sometimes have another for a advisors first to as advisors recruiting. into recruiting new Currently, absolutely structure think approach recruit, up where way ramping recruit nice Asante, job. the we recruiting so one line the of now centralized I we to bumping question, our a to one for just

So if CI to Canada model open willing if advisor Asante the opportunities, has in model. you, new a looking, business and business exploring you're you're and for we anywhere have you're an

have model. We the aligned business

all brands CI, to adopt to with the one and well. linkage CI capacity. Investor a at a the platform transitioned and it will to plug opposed private CI go CI have CI right? haven't of the aligned, as prioritized adopting personally point, you marketing brand wealth private completely Services our at have So to our independent, some the wealth, the Services, Canada. same Asante, well. And constancy into want see hadn't we relates have have is name that is platform have you as as for the aligned of branding, in that we one [indiscernible], adopted CI, is brands CI Investor then as as reason more partnership advisors because aligned to in The you Graham We yet will a our you we in but consistency well, the if

So that. the on integration automation, but we efforts our more of at some solutions, point, technology just to will we the platform, focus and had get digitization to

So the side all will the brands look in Canadian asset as same side. what U.S. wealth doing the the we're

Graham Ryding

the And update? management on asset still lifting [indiscernible] do. side, an maybe your with notable anything of where the understood. integration the then, asset Okay, to all you And heavy the or the process, is are division, that on -- management

Kurt MacAlpine

to lot a do. There's

the of integrated risk integrated of emphasize all platform, We do the that decision the done. individual to a funds, to think head away decisions a funds, an the do lot portfolio most a right, new important toughest and subscale have I analytics. deemphasize move from the I'd have competing stuff's new say, research team, and made, boutiques, the -- structural been changes the and integration have renaming platform. been of We of into

very success As on private about we've call, we've pursuing about easier structural alternatives, had like tax level. that approach more that how about platform were of would collective ESG, ago, Everything to thinking our doing much or which we how more is something we're at evolving been on about tax liquid have have on in thinking upcoming we be the we're ESG, do an years what and I markets the made we're changes, might talk also detail now boutique, would to framework it to the two we and in were think efficiency so because much individually and about I'll we had efficient. talking a how at thinking mentioned, each if back about different that the

changes by So for QX duplication, you clients, mentioned billion. asset waste you well. versus redemptions our is if against flows management And excited and think on very our look last doubled. once peers management with that year XX%. the was improved about mutual associated those challenging the I declined clients, and we fund the that, performance nearly the I'm is the asset doing And at think impact for it about $X side as our our the with it doing and associated part confusion

in continue is but So like the set working well really we're the to I relative feel hard up very, differentiation drive success to to others team very for market.

Graham Ryding

business, entity? you own listing you up wealth wealth I overall CI IPO, stake, of your then, you to private your the say of equivalent private the of to this percentage or when Okay. XX% what's wealth And to are XX% the XX% referring then sell guess What update? you of of on And today? intend

Kurt MacAlpine

Sure.

valuable. the have I we just also and think net So a disclosed their have. individuals the allocated is amount significant incredibly partnership of into what we're this first, two worth conviction individuals for haven't building it's which individual to don't partnership, testament relevant a on terribly ownership, reasons. And themselves huge these metric, a One, CI’s that is the

Secondly, disclosing are only our we in financials, share the of representative our ownership.

there's a bit of And transaction So nodes third, little with a not every different. that. lot associated then is

well. stuff different to based it's increase like private expect whether up to out partners takes private company those CI, down it's an your it's partners whether various about that so When our as the will bounce ownership investors, do that be in I second of it and is exist a newly passive private little as taking will So question, we going wealth, when to depending that partnership bit to public partnership upon I think [indiscernible] and continue to listed. stake in take the and around upon our transactions, public, cash remain guess partners model constructs with

Graham Ryding

noticed Okay, notable on perfect. I the anything that? sneak one that there pretty driving just, materially If SG&A I more dropped management in quarter-over-quarter, was asset side could

Amit Muni

base, line. being to find Amit. effort. looking It’s efficiencies And flow Again, notable. our part continued of just Hi. having our the cost to able we've Nothing and had at bottom that it's

just continued nothing to So effort our manage to but notable costs, highlight.

Graham Ryding

So, rate, conditions will levels? a reasonable given and asset run current market that

Amit Muni

levels, and conditions market asset management. fair think a rate I that's asset current Given run for

Operator

when Capital from Please Tom now [Operator Markets. have Instructions] We you're BMO go MacKinnon Tom. ahead ready,

Tom MacKinnon

got here. I on Yes. call late the

So thanks for taking my questions.

on update Just saw wealth with U.S. and you that in anything sure at the to about you describe respect flow, Periodically, XX. if quarter management, as and the to us flows asset in about all respect with flows in and regard on Not you you in there can Canada, in talked both and Slide is management. April? talk first the

Kurt MacAlpine

asset flows that relates quarter being a flow So positive, it We make the as right. company, in we management first we Tom, did to negative. the disclosed as were statement the

our flow in would offset business U.S. management negative, wealth obviously, at positive been our So led flow businesses, have what we by management. that the level redeemed asset a asset

providing same management in as the won't bit flows flows, to industry relates flow. the thinks I different, from flows lumpier, sometimes absolutely we it as been industry periodically. The guess have is we that are we how on flows, the is a asset will ongoing flows, we've flows As clarity providing little thinking done wealth different, about way format be about the be

were we're very a positively I for QX, flowing. think, as strongly at just on organic IPO a in we closer consistent timing businesses format, So will But But growth our disclosing looking of we get flows. align to wealth client the net assets. consistent those

Tom MacKinnon

did look how Any, that April? in

Kurt MacAlpine

We haven't April. disclosed

Tom MacKinnon

we be in so be CIPW compensation if is that increased find earnings, somewhere for be expense. would that? ownership take how increased of look in non-control? to we this -- their to then that and would on not what And sure expense, accounting we're Slide going looking are here should the that around Okay. how expense at stake XX, it I say CIPW, be the you're an I'm well, the partners Would suffice incremental management associated here and wealth pre-tax compensation XX% with U.S. compensation

Amit Muni

includes Hi, includes platform, just alternative RAA we but Tom. remember rough our only But the additional the also estimate. Its there businesses have particularly are I caution not Amit. that That U.S. you will in platform. a give U.S., would business you

not just it's the So business. USRA

our hopefully clean that sort better noise we on numbers, of transparency Again, a helps out CIPW that to hopefully all bit. So this you -- the it numbers. of accounting backed a provides so related in adjusted little

Operator

Instructions] [Operator have registered this We no further time. you. questions at Thank

So back to the hand to I'd close. like it team to management

Kurt MacAlpine

for today's forward you quarter. with Thank next look you to everyone We your call. speaking participation in

Operator

conclude thank joining. does Thank for you again today's you. and This call

may You now disconnect.

CI Financial (CIXXF) 16 May 222022 Q1 Earnings call transcript