CI Financial has reported a year-over-year rise in net income in Q2 2020, with wealth management assets reaching a record high as it continues its aggressive growth plan.
Performance highlights for CI Financial Q2 2020
The Canadian wealth manager’s net income of C$119.8m in Q2 2020 was almost stable compared to the previous quarter and up 7% from the year-ago figure of C$111.5m.
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Assets under management totalled C$125.56bn at the end of June 2020, a 13% rise from Q1 and down 3% from the previous year.
Wealth management assets reached C$53.87bn as of 30 June 2020, a 21% surge from C$44.61bn in the previous quarter and a 14 increase from C$47.35bn a year ago.
This reflected contributions from Assante Wealth Management (Canada), CI Private Counsel, WealthBar Financial Services and Virtual Brokers in Canada, One Capital Management, The Cabana Group and Surevest in the US.
Canadian wealth management assets were C$49bn at June-end 2020, up 3% on a year-on-year basis.
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By GlobalDataUS wealth management assets were C$4.87bn as at 30 June 2020.
Despite acquisition-related expenses, the firm’s SG&A expenses of C$109m were 5% lower from C$115m in Q1 and 14% lower from C$124.8m a year earlier.
CI CEO Kurt MacAlpine said: “We have announced two key acquisitions this week alone that will significantly boost our scale in wealth management – Aligned Capital Partners in Canada and BDF in the U.S. Combined with our other American acquisitions and the strong growth of Assante and CI Private Counsel, we have added $25 billion in new adviser assets for the year-to-date, compared to additions of $1 billion in 2019.
“We have achieved strong initial momentum against our strategic priority of globalising the company, as our U.S. acquisitions will hold a combined $14.7 billion in assets when all transactions are completed.”
