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CI Financial

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CI Financial Inc.
Company typePublic
TSX: CIX
NYSE: CIXX
S&P/TSX Composite Component
IndustryInvestment management
Founded1965; 59 years ago (1965) (as Universal Savings Fund Management Limited)
FounderG. Raymond Chang[1]
Headquarters
Toronto, Ontario
,
Canada
Key people
Kurt MacAlpine (CEO)
Amit Muni (CFO)
Darie Urbanky (COO)
AUMCA$450.0 billion[2]
Number of employees
1,490[3] (2020)
Divisions
  • CI Global Asset Management
  • CI Assante Wealth Management
  • CI Direct Investing
  • CI Investment Services
  • CI Private Wealth
Websitewww.cifinancial.com

CI Financial is a Canadian investment management company based in Toronto, Ontario.[2] It offers investment management and wealth management services targeted to high net worth retail investors, as well as brokerage and trading services to portfolio managers and institutional investors.

It is considered one of the Big Three investment management companies in Canada, along with Mackenzie Investments and Fiera Capital.[4][5][6]

As of 2024, it has a total of $450.0 billion in assets under management and advisement.[2] It is listed on the Toronto Stock Exchange as TSX: CIX, the New York Stock Exchange as NYSE: CIXX and is also a component of the S&P/TSX Composite Index.

History

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CI Financial was founded in 1965 as Universal Savings Fund Management Limited.[7] It was a small private investment firm until 1994, when it held an IPO on the Toronto Stock Exchange as C.I. Fund Management (the C.I. stood for Canadian International).[8] In the next 9 years, it increased in size by 10 times.[8] In 1999, Bill Holland became CEO of the company, a position that he was to hold for more than 10 years.[8] Also in 1999, the company acquired BPI Financial Corp. for $206 million, creating Canada's fifth-largest public mutual fund company.[9] In 2003, CI purchased the Canadian operations of financial firm Assante Corp. for $846 million.[10] As a result of this acquisition, and two others at the same time, CI became the second largest fund management company in Canada.[10]

CI Financial logo from 2005 to 2020

In 2005, CI changed its name to CI Financial, to reflect the diversity of its activities.[11] In 2007, it acquired Rockwater Capital for $250 million.[12] This deal allowed CI to expand into the investment banking business.[12] In 2008, Sun Life Financial sold its 37% ownership in CI to Scotiabank for $2.3 billion.[13] Scotiabank made the purchase to strengthen its relatively weak wealth management business.[13] Sun Life had held the stake until before 2003. In 2010, CI acquired Hartford Investments' Canadian operations.[14] In 2014, Scotiabank sold most of its stake in CI, in part due to conflicts with the management of the company.[15]

In June 2015, CI achieved $140.4 billion in managing assets surpassing Mackenzie Investments ($136.0 billion) in becoming the largest independent investment management firm in Canada.[16][17] In November, CI acquired First Asset Capital Corp., allowing it to expand into offering exchange-traded funds.[18]

In November 2016, CI acquired an 80% stake in an Australian investment firm Grant Samuel Funds Management expanding CI's presence in the Australian and New Zealand markets.[19]

In August 2017, CI acquired one of Canada's largest independent investment management firm Sentry Investments for $780 million increasing CI's total assets by 16%.[20] In September, CI acquired BBS Securities Inc., parent company of online brokerage Virtual Brokers, due to its investment in Fintech.[21]

In October 2019, CI acquired a 49% stake in an Australian global equities firm Redpoint Investment Management further expanding CI in the Australian market.[22] In November, CI acquired the Canadian arm of US exchange-traded fund powerhouse WisdomTree Investments. CI maintained the lineup of Wisdomtree ETFs with no changes to their investment objectives or strategies.[23]

In 2020, CI underwent strategic restructuring under the leadership of CEO Kurt MacAlpine. The main division of CI was rebranded to CI Global Asset Management with the merger of former main division CI Investments, and CI First Asset Capital.[24] In house boutiques branding under CI Investments were phased out and will operate under CI Global Asset Management.[24] The affected CI Investment boutique brands were Cambridge Global Asset Management, Harbour Advisors, Sentry Investment Management, and Signature Global Asset Management.[24] CI's wealth management division Assante Wealth Management was renamed CI Assante Wealth Management. CI acquired the remaining minority 25% stake in WealthBar allowing the creation of the new division CI Direct Investing.[25] CI Direct Investing was introduced with the merger of WealthBar and Virtual Brokers.[25] CI's broker dealer BBS Securities was renamed CI Investment Services.[26] CI's Stonegate Private Counsel alongside CI's U.S. RIA businesses formed CI Private Wealth.[27]

Divisions

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CI Financial operates as a banner for its many operating divisions.

  • CI Global Asset Management (Formerly CI Investments): The main division of CI, offering mutual funds, ETFs, private pools (private funds), and alternative investments (hedge funds and private equity)
  • CI Assante Wealth Management: Wealth management services
  • CI Direct Investing: Online brokerage, wealth management, and financial planning services
  • CI Investment Services: Broker Dealer that provides brokerage and trading services to portfolio managers, introducing brokers and institutional investors
  • CI Private Wealth: Private wealth management services targeted to high net worth investors

Major investments

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  • Grant Samuel Funds Management (80%): Investment firm that offers funds and investment strategies[19]
  • Marret Asset Management (65%): Investment firm that specializes in fixed income and alternative investment strategies[28]
  • Redpoint Investment Management (49%): Global equities firm offering active equity funds and infrastructure funds[22][29]

Mergers and acquisitions

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Firm Year Established Year of Amalgamation Merged Into
BPI Financial Corp[9]
1993
1999
CI Global Asset Management (CI Investments)
Assante Corp[10]
1995
2003
CI Assante Wealth Management (Assante Wealth Management)
Synergy Asset Management[10]
1997
2003
CI Global Asset Management (CI Investments)
Rockwater Capital[12]
1995
2007
CI Global Asset Management (CI Investments)
Hartford Investments[14]
2000
2010
CI Global Asset Management (CI Investments)
First Asset Capital[18]
2000
2015
CI Global Asset Management (CI First Asset)
Sentry Investments[20]
1997
2017
CI Global Asset Management (CI Investments)
BBS Securities[21]
2008
2017
CI Investment Services (BBS Securities)
Wealthbar[25]
2014
2020
CI Direct Investing
Balasa Dinverno Foltz[30]
2001
2020
CI Private Wealth
Doyle Wealth Management[31]
2005
2020
CI Private Wealth
Robertson, Griege & Thoele Wealth Advisors[32]
1985
2020
CI Private Wealth
The Roosevelt Investment Group[33]
1971
2020
CI Private Wealth
Segall Bryant & Hamill[34]
1994
2021
CI Private Wealth
Barrett Asset Management[35]
1937
2021
CI Private Wealth

Controversy

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In 2004, the Ontario Securities Commission (OSC) approved settlement agreements with CI Investments and three other fund companies. As part of the settlement, CI Investments agreed to make a payment of $49.3 million to investors in its mutual funds that were affected by market timing trades carried out by third party investors in certain mutual funds managed by CI Investments.[36][37]

In 2016, CI reached a no-contest settlement with the OSC to pay $156 million to 360,000 investors in its mutual funds.[38] The settlement was due to CI Investments miscalculating the net asset value of certain funds, by not properly accounting for interest earned from 2009 to 2015. CI Investments also paid an $8 million voluntary payment to the commission.[39][40] This settlement agreement resulted in the largest amount of compensation paid to investors pursuant to a no-contest settlement agreement in Ontario.[41][38]

References

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  1. ^ "CI Financial co-founder G. Raymond Chang was a legend". The Globe and Mail. July 28, 2014. Retrieved January 30, 2021.
  2. ^ a b c "CI Financial Completes Three Previously Announced Acquisitions, Boosting Total Assets to a Record $450 Billion". CI Financial. Retrieved February 22, 2024.
  3. ^ "CI Financial". Bloomberg. Retrieved March 11, 2020.
  4. ^ "IGM Financial Inc". The Globe and Mail. Archived from the original on November 18, 2018. Retrieved December 20, 2020.
  5. ^ "CI Financial Corp". The Globe and Mail. Archived from the original on November 26, 2018. Retrieved December 20, 2020.
  6. ^ "Fiera Capital". Linkedin. Retrieved December 20, 2020.
  7. ^ "About Us | CI Financial". CI Financial. Retrieved January 29, 2018.
  8. ^ a b c "From truck driver to deal maker". The Globe and Mail. August 23, 2003. Retrieved January 29, 2018.
  9. ^ a b "BPI and CI merger to create huge mutual fund firm". CBC News. Retrieved January 29, 2018.
  10. ^ a b c d "CI Fund Management snaps up two finance companies". CBC News. Retrieved January 29, 2018.
  11. ^ "CI changing name". The Globe and Mail. June 27, 2005. Retrieved January 29, 2018.
  12. ^ a b c "CI fund offers $251M for Rockwater Capital". The Toronto Star. February 12, 2007. ISSN 0319-0781. Retrieved January 29, 2018.
  13. ^ a b "Scotiabank scores CI stake from Sun Life". www.advisor.ca. October 6, 2008. Retrieved January 29, 2018.
  14. ^ a b "CI Financial acquires Hartford's Canadian arm". The Globe and Mail. October 21, 2010. Retrieved January 29, 2018.
  15. ^ "Scotiabank unloads its stake in CI to welcoming arms". Financial Post. May 28, 2014. Retrieved January 29, 2018.
  16. ^ "CI Financial 2015 Q2 Report" (PDF). CI Financial. Archived (PDF) from the original on November 23, 2020. Retrieved December 19, 2020.
  17. ^ "IGM Financial 2015 Q2 Report" (PDF). IGM Financial. Retrieved December 19, 2020.
  18. ^ a b "CI Financial scoops up ETF provider First Asset Capital". The Globe and Mail. October 23, 2015. Retrieved January 29, 2018.
  19. ^ a b "CI Financial to acquire a majority stake in Grant Samuel Funds Management, a leading Australian investment fund manager". Newswire. Archived from the original on January 17, 2021. Retrieved January 4, 2021.
  20. ^ a b "CI buys Sentry for $780 million". Investment Executive. August 10, 2017. Retrieved December 20, 2020.
  21. ^ a b "CI Financial buys Virtual Brokers parent BBS". The Globe and Mail. September 8, 2017. Retrieved March 28, 2018.
  22. ^ a b "CI Financial and GSFM announce acquisition of stake in Redpoint Investment Management". Newswire. Archived from the original on January 20, 2020. Retrieved January 3, 2021.
  23. ^ "CI Financial to acquire WisdomTree's Canadian ETF business". Newswire. Archived from the original on January 20, 2020. Retrieved January 3, 2021.
  24. ^ a b c "CI Investments Rebrands as CI Global Asset Management". Financial Post. Retrieved November 12, 2020.
  25. ^ a b c "CI Financial extends ownership of WealthBar to 100%; Firm to be cornerstone of integrated CI Direct Investing platform". Newswire. Retrieved November 12, 2020.
  26. ^ "BBS Securities Rebrands as CI Investment Services". Financial Post. Retrieved November 12, 2020.
  27. ^ "MacAlpine charting ambitious course at CI". Investment Executive. July 13, 2020. Archived from the original on July 13, 2020. Retrieved December 19, 2020.
  28. ^ "CI buys majority stake in Marret Asset Management". Investment Executive. September 25, 2013. Archived from the original on April 20, 2021. Retrieved April 20, 2021.
  29. ^ "Redpoint Investment Management Pty Ltd". Bloomberg. Archived from the original on June 10, 2020. Retrieved January 3, 2021.
  30. ^ "CI Financial completes acquisition of BDF, a Chicago-area private wealth firm with US$4.5 billion in assets". Newswire (Press release). Archived from the original on October 19, 2020. Retrieved January 14, 2020.
  31. ^ "CI Financial to Acquire $1.1 Billion Wealth Firm Doyle Wealth Management, its First Florida and 11th U.S. RIA Transaction This Year". Financial Post. Archived from the original on November 6, 2020. Retrieved January 14, 2020.
  32. ^ "CI takes majority stake in RGT Wealth Advisors". Investment Executive. Archived from the original on November 25, 2020. Retrieved January 14, 2020.
  33. ^ "CI to acquire Roosevelt Investment Group". Investment Executive. Archived from the original on December 5, 2020. Retrieved January 14, 2020.
  34. ^ "CI Financial buys $23 billion RIA Segall Bryant & Hamill". Investment News. January 25, 2021. Archived from the original on January 26, 2021. Retrieved March 11, 2021.
  35. ^ "CI acquires Barrett Asset Management". Investment Executive. March 11, 2021. Archived from the original on March 11, 2021. Retrieved March 11, 2021.
  36. ^ "Market timing at heart of class action". The Globe and Mail. December 1, 2009. Retrieved March 28, 2018.
  37. ^ "Regulators assess $203.2 million in penalties over market timing". CBC News. Retrieved January 29, 2018.
  38. ^ a b "CI Investments to pay clients $156-million in OSC settlement deal". The Globe and Mail. February 10, 2016. Retrieved January 29, 2018.
  39. ^ "IN THE MATTER OF THE SECURITIES ACT, R.S.O. 1990, c. S.5, AS AMENDED -AND – CI INVESTMENTS INC" (PDF). Ontario Securities Commission.
  40. ^ "CIBC divisions to repay $73-million to overcharged customers". The Globe and Mail. October 28, 2016. Retrieved March 28, 2018.
  41. ^ "Critics question settlement program for banks that overcharged fees". CBC News. Retrieved January 29, 2018.
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