Today's Viewpoint: A MarshBerry Publication


CI Financial Corp. (TSX: CIX, NYSE: CIXX) reported third quarter 2022 results. As CIX is a Canadian-based firm, all financial amounts are reported in Canadian dollars. Adjusted Earnings Per Share (EPS) was $0.73, down 8% from a year ago. Read the five things you should know about this earnings report.


CI Financial Corp. (TSX: CIX, NYSE: CIXX) reported third quarter 2022 results. As CIX is a Canadian-based firm, all financial amounts are reported in Canadian dollars, unless otherwise noted. Adjusted Earnings Per Share (EPS) was $0.73, down 8% from a year ago. Here are five things you should know about this earnings call:

  1. While no acquisitions closed during Q3, CIX did close on two acquisitions in October 2022. Inverness Counsel and Eaton Vance Investment Counsel added a combined $18 billion of client assets. U.S. firm Eaton Vance Investment Counsel is based out of Boston, MA, and Inverness Counsel is based out of New York, NY. Inverness Counsel has 15 investment professionals and 40+ years of experience in pension plans. CIX believes their value add includes investment in technology and differentiated service offerings that can drive inorganic growth.
  2. CIX continues its intention to have an Initial Public Offering (IPO) of its U.S. Wealth Management business. The Company plans to submit Form S-1 later this month intending to delist CIXX from the NYSE before or during the IPO. Management’s plans for the Canadian business post IPO include retaining existing debt, using raised funds to deleverage the business, and stopping mergers and acquisitions (M&A) activity in the U.S and limit pursuing large opportunities in Canada. Management plans to only be listed in the U.S. post IPO, while not assuming any existing Canadian tied debt outside of retaining M&A earnout obligations and will use cash flows and stock to fund inorganic growth.
  3. Total Assets Under Management (AUM) and client assets rose to $338.0 billion from $333.7 billion in Q2 2022. Despite the turbulent market, there was a $4B increase in assets in Q3 2022 driven by general market conditions, foreign currency (FX) gains, and net inflows.
  4. Q3 2022 net revenue was $513.6 million, down from $566.7 million in Q2 2022. Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation & Amortization) margin in Q3 2022 fell to 43.0% from 44.5% in Q2 2022. Declines in net revenue in Q3 were primarily the result of FX losses ($73.9 million) and transaction, integration, restructuring and legal expenses ($13.6 million), which were approximately double the Q2 amounts.
  5. CIX’s U.S. Wealth business is the largest integrated RIA business in the United States. As of 10/31/22, the U.S. wealth business had AUM and client assets of US$126.0 billion. CIX believes they have desirable client profiles focused on high-net-worth and ultra-high clients. The U.S. wealth business has the highest profit margins of any published wealth manager and industry-leading inorganic growth driven by CIX’s unique structure and approach to M&A. CIX has had strong organic client growth every quarter since they launched. There are only three public financial services companies (out of approximately 1,800) that have CIX’s growth, revenue, and profit margin metrics.

To learn more visit: CI Financial Reports Financial Results for the Third Quarter of 2022

Investment banking services offered through MarshBerry Capital, LLC, Member FINRA and SIPC, and an affiliate of Marsh, Berry & Company, LLC, 28601 Chagrin Blvd, Suite 400, Woodmere, OH 44122 (440) 354-3230

This earnings summary has been prepared by Marsh, Berry & Co., LLC. and is not intended to provide investment recommendations on any company. It is not a research report, as such term is defined by applicable laws and regulations, and it does not contain sufficient information upon which to make an investment decision. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any securities, financial instruments or to participate in any particular trading strategy. These materials are based solely on information contained in publicly available documents and Marsh, Berry & Co., LLC has not independently attempted to investigate or to verify such information.

MarshBerry continues to be the #1 sell side advisor in the industry (as ranked by S&P Global). If you're considering selling your firm, we are the best choice to help you through the complicated process. If you don't hire MarshBerry, hire a reputable advisor that can help you navigate one of the most important business decisions you will ever make. You will be much better off having an advisor in your corner that knows the industry than trying to do this on your own.