Topic: How To Invest

Q: Hi, Pat. Your thoughts, please, on the prospects for CI Financial. Thank you.

Article Excerpt

A: CI Financial, $21.59, symbol CIX on Toronto (Shares outstanding: 238.6 million; Market cap: $5.2 billion; www.cifinancial.com), is the fourth largest mutual fund company in Canada. As such, it provides investment management services for mutual funds sold through independent advisors under the CI, Signature, Cambridge, Harbour, Black Creek, and multiple other brands. The company has assets under management of $131.3 billion. CI faces a number of challenges, and that’s pushing down its share price. Net outflows were $2.3 billion in the 2019 first quarter. That’s worse than a year earlier, when net outflows stood at $1.3 billion for the first quarter of 2018. The 2019 first quarter outflows are, however, down from net outflows of $2.7 billion for the 2018 fourth quarter. Still, the negative trend will likely continue in part because of weaker fund returns. In early August 2018, the company cut its dividend by 50%. It stated that it plans to put more funds into growth opportunities. CI also aims…

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