CI Financial shares climb on earnings growth

CI Financial Inc. CIX-T saw its shares jump more than 8% on Thursday — their biggest jump in nearly 16 months — after the independent investment manager reported strong quarterly earnings.

On Thursday, CI reported net income of $158 million or 82 cents per share in the second quarter, compared with $117 million or 57 cents in the same period a year ago.

Shares of CI jumped on the news, before slowing to end the day up 40 cents or 2.7% at $15.07.

Chief Executive Kurt MacAlpine told analysts the results “validate” the company’s revamped business strategy and capital allocation policies, which have seen CI expand aggressively in the United States. by buying over 25 registered investment advisory firms since January 2020.

“Our expansion into wealth management in the United States and Canada has added stability and diversification to our business, with our US operations increasingly contributing to revenue and earnings,” Mr. MacAlpine said.

Market volatility affected the company’s overall level of assets under management, which fell in the quarter to $333 billion from around $370 billion in April. Much of the decline came from its asset management division, which fell to $116 billion in assets in the second quarter from $138 billion a year earlier.

MacAlpine also told analysts on Thursday that the company is set to file regulatory documents for an initial public offering with the U.S. Securities and Exchange Commission to launch an initial public offering for its asset management business. heritage in the United States, which now represents more than half of the company.

The US wealth management arm saw its assets climb to $143 billion in the second quarter, from $83 billion in the second quarter of 2021.

The IPO was first announced in May as CI said it would sell up to 20% of its US wealth management business through a US offering.

The company said it intends to use the net proceeds from the offering to repay debt, and a final decision on the size, terms and timing of the IPO is pending. and will be subject to market conditions.

With a file by David Milstead

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