CI Financial
{{Short description|Canadian investment management company}}
{{Use mdy dates|date=December 2023}}
{{Infobox company
| name = CI Financial Inc.
| logo = CI_Financial_Logo_2020.svg
| image = MapleLeafSquare.jpg
| image_caption = CI Financial in Toronto
| type = Public
| traded_as = {{tsx|CIX}}
{{nyse|CIXX}}
S&P/TSX Composite Component
| industry = Investment management
| founded = {{start date and age |1965}} (as {{nowrap|Universal Savings}} Fund Management Limited)
| founder = G. Raymond Chang{{Cite news|url=https://www.theglobeandmail.com/report-on-business/streetwise/ci-financial-co-founder-g-raymond-chang-dies-at-65/article19814084/|title=CI Financial co-founder G. Raymond Chang was a legend|work=The Globe and Mail|date=July 28, 2014 |access-date=January 30, 2021}}
| hq_location_city = Toronto, Ontario
| hq_location_country = Canada
| key_people = Kurt MacAlpine (CEO)
Amit Muni (CFO)
Darie Urbanky (COO)
| divisions = {{Unbulleted list
|CI Global Asset Management
|CI Assante Wealth Management
|CI Direct Investing
|CI Investment Services
|CI Private Wealth
}}
| aum = CA$450.0 billion{{Cite web|url=https://financialpost.com/pmn/press-releases-pmn/business-wire-news-releases-pmn/ci-financial-completes-three-previously-announced-acquisitions-boosting-total-assets-to-a-record-280-billion|title=CI Financial Completes Three Previously Announced Acquisitions, Boosting Total Assets to a Record $450 Billion|work=CI Financial|access-date=Feb 22, 2024}}
| num_employees = 1,490{{Cite web|last=|first=|date=|title=CI Financial |url=https://www.bloomberg.com/profile/company/CIX:CN|access-date=March 11, 2020|website=Bloomberg}}
| num_employees_year = 2020
| website = {{website |https://www.cifinancial.com/ }}
}}
CI Financial is a Canadian investment management company based in Toronto, Ontario. 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.{{Cite web|last=|first=|date=|title=IGM Financial Inc|url=https://www.theglobeandmail.com/investing/markets/stocks/IGM-T/|url-status=live|archive-url=https://web.archive.org/web/20181118201225/https://www.theglobeandmail.com/investing/markets/stocks/IGM-T/ |archive-date=November 18, 2018 |access-date=December 20, 2020|website=The Globe and Mail}}{{Cite web|last=|first=|date=|title=CI Financial Corp|url=https://www.theglobeandmail.com/investing/markets/stocks/CIX-T/|url-status=live|archive-url=https://web.archive.org/web/20181126121814/https://www.theglobeandmail.com/investing/markets/stocks/CIX-T/ |archive-date=November 26, 2018 |access-date=December 20, 2020|website=The Globe and Mail}}{{Cite web|last=|first=|date=|title=Fiera Capital|url=https://ca.linkedin.com/company/fiera-capital|archive-url=|archive-date=|access-date=December 20, 2020|website=Linkedin}}
{{As of |2024}}, it has a total of $450.0 billion in assets under management and advisement. 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
CI Financial was founded in 1965 as Universal Savings Fund Management Limited.{{Cite news|url=https://www.cifinancial.com/about-us/#!ourhistory|title=About Us {{!}} CI Financial|work=CI Financial|access-date=January 29, 2018|language=en-US}} 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).{{Cite news|url=https://www.theglobeandmail.com/report-on-business/from-truck-driver-to-deal-maker/article22500780/|title=From truck driver to deal maker|date=August 23, 2003|work=The Globe and Mail|access-date=January 29, 2018}} In the next 9 years, it increased in size by 10 times. In 1999, Bill Holland became CEO of the company, a position that he was to hold for more than 10 years. Also in 1999, the company acquired BPI Financial Corp. for $206 million, creating Canada's fifth-largest public mutual fund company.{{Cite news|url=http://www.cbc.ca/news/business/bpi-and-ci-merger-to-create-huge-mutual-fund-firm-1.190666|title=BPI and CI merger to create huge mutual fund firm|work=CBC News|access-date=January 29, 2018|language=en}} In 2003, CI purchased the Canadian operations of financial firm Assante Corp. for $846 million.{{Cite news|url=http://www.cbc.ca/news/business/ci-fund-management-snaps-up-two-finance-companies-1.406003|title=CI Fund Management snaps up two finance companies|work=CBC News|access-date=January 29, 2018|language=en}} As a result of this acquisition, and two others at the same time, CI became the second largest fund management company in Canada.
In 2005, CI changed its name to CI Financial, to reflect the diversity of its activities.{{Cite news|url=https://www.theglobeandmail.com/report-on-business/ci-changing-name/article25678111/|title=CI changing name|date=June 27, 2005|work=The Globe and Mail|access-date=January 29, 2018}} In 2007, it acquired Rockwater Capital for $250 million.{{Cite news|url=https://www.thestar.com/business/2007/02/12/ci_fund_offers_251m_for_rockwater_capital.html|title=CI fund offers $251M for Rockwater Capital|date=February 12, 2007|work=The Toronto Star|access-date=January 29, 2018|language=en-CA|issn=0319-0781}} This deal allowed CI to expand into the investment banking business. In 2008, Sun Life Financial sold its 37% ownership in CI to Scotiabank for $2.3 billion.{{Cite web|url=http://www.advisor.ca/news/industry-news/scotiabank-scores-ci-stake-from-sun-life-25370|title=Scotiabank scores CI stake from Sun Life|website=www.advisor.ca|date=October 6, 2008 |language=en-US|access-date=January 29, 2018}} Scotiabank made the purchase to strengthen its relatively weak wealth management business. Sun Life had held the stake until before 2003. In 2010, CI acquired Hartford Investments' Canadian operations.{{Cite news|url=https://www.theglobeandmail.com/globe-investor/funds-and-etfs/funds/ci-financial-acquires-hartfords-canadian-arm/article563677/|title=CI Financial acquires Hartford's Canadian arm|date=October 21, 2010|work=The Globe and Mail|access-date=January 29, 2018}} In 2014, Scotiabank sold most of its stake in CI, in part due to conflicts with the management of the company.{{Cite news|url=http://business.financialpost.com/news/fp-street/scotiabank-to-raise-up-to-2-62-billion-in-ci-financial-offering|title=Scotiabank unloads its stake in CI to welcoming arms|date=May 28, 2014|work=Financial Post|access-date=January 29, 2018|language=en-US}}
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.{{Cite web|last=|first=|date=|title=CI Financial 2015 Q2 Report|url=https://www.cifinancial.com/content/dam/ci-financial/downloads/cixq2_15.pdf|url-status=live|archive-url=https://web.archive.org/web/20201123165247/https://cifinancial.com/content/dam/ci-financial/downloads/cixq2_15.pdf |archive-date=November 23, 2020 |access-date=December 19, 2020|website=CI Financial}}{{Cite web|last=|first=|date=|title=IGM Financial 2015 Q2 Report|url=https://www.igmfinancial.com/content/dam/igm/en/news/2015/0806-q2-earnings.pdf|archive-url=|archive-date=|access-date=December 19, 2020|website=IGM Financial}} In November, CI acquired First Asset Capital Corp., allowing it to expand into offering exchange-traded funds.{{Cite news|date=October 23, 2015|title=CI Financial scoops up ETF provider First Asset Capital|work=The Globe and Mail|url=https://www.theglobeandmail.com/globe-investor/funds-and-etfs/etfs/ci-financial-scoops-up-etf-provider-first-asset-capital/article26956000/|access-date=January 29, 2018}}
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.{{Cite web|last=|first=|date=|title=CI Financial to acquire a majority stake in Grant Samuel Funds Management, a leading Australian investment fund manager|url=https://www.newswire.ca/news-releases/ci-financial-to-acquire-a-majority-stake-in-grant-samuel-funds-management-a-leading-australian-investment-fund-manager-599726431.html|url-status=live|archive-url=https://web.archive.org/web/20210117223624/https://www.newswire.ca/news-releases/ci-financial-to-acquire-a-majority-stake-in-grant-samuel-funds-management-a-leading-australian-investment-fund-manager-599726431.html |archive-date=January 17, 2021 |access-date=January 4, 2021|website=Newswire}}
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%.{{Cite web|last=|first=|date=August 10, 2017|title=CI buys Sentry for $780 million|url=https://www.investmentexecutive.com/news/industry-news/ci-buys-sentry-for-780-million/|archive-url=|archive-date=|access-date=December 20, 2020|website=Investment Executive|language=en-US}} In September, CI acquired BBS Securities Inc., parent company of online brokerage Virtual Brokers, due to its investment in Fintech.{{Cite news|date=September 8, 2017|title=CI Financial buys Virtual Brokers parent BBS|work=The Globe and Mail|url=https://www.theglobeandmail.com/globe-investor/funds-and-etfs/ci-financial-buys-virtual-brokers-parent-bbs/article36216422/|access-date=March 28, 2018}}
In October 2019, CI acquired a 49% stake in an Australian global equities firm Redpoint Investment Management further expanding CI in the Australian market.{{Cite web|last=|first=|date=|title=CI Financial and GSFM announce acquisition of stake in Redpoint Investment Management|url=https://www.newswire.ca/news-releases/ci-financial-and-gsfm-announce-acquisition-of-stake-in-redpoint-investment-management-809384178.html|url-status=live|archive-url=https://web.archive.org/web/20200120171612/https://www.newswire.ca/news-releases/ci-financial-and-gsfm-announce-acquisition-of-stake-in-redpoint-investment-management-809384178.html |archive-date=January 20, 2020 |access-date=January 3, 2021|website=Newswire}} 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.{{Cite web|last=|first=|date=|title=CI Financial to acquire WisdomTree's Canadian ETF business|url=https://www.newswire.ca/news-releases/ci-financial-to-acquire-wisdomtree-s-canadian-etf-business-864271423.html|url-status=live|archive-url=https://web.archive.org/web/20200120170354/https://www.newswire.ca/news-releases/ci-financial-to-acquire-wisdomtree-s-canadian-etf-business-864271423.html |archive-date=January 20, 2020 |access-date=January 3, 2021|website=Newswire}}
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.{{Cite web|url=https://financialpost.com/pmn/press-releases-pmn/business-wire-news-releases-pmn/ci-investments-rebrands-as-ci-global-asset-management|title=CI Investments Rebrands as CI Global Asset Management|work=Financial Post|access-date=November 12, 2020}} In house boutiques branding under CI Investments were phased out and will operate under CI Global Asset Management. The affected CI Investment boutique brands were Cambridge Global Asset Management, Harbour Advisors, Sentry Investment Management, and Signature Global Asset Management. 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.{{Cite web|url=https://www.newswire.ca/news-releases/ci-financial-extends-ownership-of-wealthbar-to-100-firm-to-be-cornerstone-of-integrated-ci-direct-investing-platform-878851802.html|title=CI Financial extends ownership of WealthBar to 100%; Firm to be cornerstone of integrated CI Direct Investing platform|work=Newswire|access-date=November 12, 2020}} CI Direct Investing was introduced with the merger of WealthBar and Virtual Brokers. CI's broker dealer BBS Securities was renamed CI Investment Services.{{Cite web|url=https://financialpost.com/pmn/press-releases-pmn/business-wire-news-releases-pmn/bbs-securities-rebrands-as-ci-investment-services|title=BBS Securities Rebrands as CI Investment Services|work=Financial Post|access-date=November 12, 2020}} CI's Stonegate Private Counsel alongside CI's U.S. RIA businesses formed CI Private Wealth.{{Cite web|last=|first=|date=July 13, 2020|title=MacAlpine charting ambitious course at CI|url=https://www.investmentexecutive.com/news/industry-news/macalpine-charting-ambitious-course-at-ci/|url-status=live|archive-url=https://web.archive.org/web/20200713170344/https://www.investmentexecutive.com/news/industry-news/macalpine-charting-ambitious-course-at-ci/ |archive-date=July 13, 2020 |access-date=December 19, 2020|website=Investment Executive}}
Divisions
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
- Grant Samuel Funds Management (80%): Investment firm that offers funds and investment strategies
- Marret Asset Management (65%): Investment firm that specializes in fixed income and alternative investment strategies{{Cite web|title=CI buys majority stake in Marret Asset Management|url=https://www.investmentexecutive.com/news/products/ci-buys-majority-stake-in-marret-asset-management/|url-status=live|access-date=April 20, 2021|website=Investment Executive|date=September 25, 2013 |archive-url=https://web.archive.org/web/20210420170324/https://www.investmentexecutive.com/news/products/ci-buys-majority-stake-in-marret-asset-management/ |archive-date=April 20, 2021 }}
- Redpoint Investment Management (49%): Global equities firm offering active equity funds and infrastructure funds{{Cite web|last=|first=|date=|title=Redpoint Investment Management Pty Ltd|url=https://www.bloomberg.com/profile/company/0047142D:AU|url-status=live|archive-url=https://web.archive.org/web/20200610163528/https://www.bloomberg.com/profile/company/0047142D:AU |archive-date=June 10, 2020 |access-date=January 3, 2021|website=Bloomberg}}
Mergers and acquisitions
Controversy
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.{{Cite news|url=https://www.theglobeandmail.com/globe-investor/funds-and-etfs/funds/market-timing-at-heart-of-class-action/article1365965/|title=Market timing at heart of class action|date=December 1, 2009|work=The Globe and Mail|access-date=March 28, 2018}}{{Cite news|url=http://www.cbc.ca/news/business/regulators-assess-203-2-million-in-penalties-over-market-timing-1.504266|title=Regulators assess $203.2 million in penalties over market timing|work=CBC News|access-date=January 29, 2018|language=en}}
In 2016, CI reached a no-contest settlement with the OSC to pay $156 million to 360,000 investors in its mutual funds.{{Cite news|url=https://www.theglobeandmail.com/report-on-business/industry-news/the-law-page/ci-investments-to-pay-156-million-in-osc-settlement-deal/article28702510/|title=CI Investments to pay clients $156-million in OSC settlement deal|date=February 10, 2016|work=The Globe and Mail|access-date=January 29, 2018}} 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.{{Cite web|url=http://www.osc.gov.on.ca/documents/en/rad_20160210_ci-investments.pdf|title=IN THE MATTER OF THE SECURITIES ACT, R.S.O. 1990, c. S.5, AS AMENDED -AND – CI INVESTMENTS INC.|website=Ontario Securities Commission}}{{Cite news|url=https://www.theglobeandmail.com/report-on-business/cibc-divisions-to-repay-73-million-to-overcharged-customers/article32578350/|title=CIBC divisions to repay $73-million to overcharged customers|date=October 28, 2016|work=The Globe and Mail|access-date=March 28, 2018}} This settlement agreement resulted in the largest amount of compensation paid to investors pursuant to a no-contest settlement agreement in Ontario.{{Cite news|url=http://www.cbc.ca/news/canada/nova-scotia/banks-overcharging-fees-settlements-1.4357154|title=Critics question settlement program for banks that overcharged fees|work=CBC News|access-date=January 29, 2018|language=en}}