TSX Symbol: CIX.UN
TORONTO, May 1 /CNW/ - CI Financial Income Fund ("CI") today reported
assets under management of $69.0 billion and fee-earning assets of
$98.6 billion at April 30, 2007. During the month, CI had gross sales of
$856 million and net sales of $134 million.
CI's asset levels represent a new record for the company, following the
April 4 completion of CI's offer to acquire Rockwater Capital Corporation.
With Rockwater, CI acquired Blackmont Capital Inc., a full-service investment
dealer, KBSH Capital Management Inc., an investment counselling firm, and
Lakeview Asset Management Inc., a mutual fund company.
CI's assets under management at April 30, 2007 were up $4.4 billion or
6.8% over the month and up $10.5 billion or 17.9% over a year ago. Fee-earning
assets increased $14.2 billion or 16.9% over the month and $22.4 billion or
29.5% over the year.
Assets under management at April 30, 2007 consisted of investment fund
assets at CI Investments Inc. and United Financial Corporation of $64.4
billion and other assets under management of $4.6 billion, which includes CI's
structured products and assets at KBSH and Lakeview. CI's administered/other
assets of $29.7 billion included $17.9 billion in assets under administration
at Assante Wealth Management (Canada) Ltd. and IQON Financial Inc. (net of
assets under management at United Financial), assets under administration at
Blackmont of $9.8 billion, as well as institutional assets at Trilogy Global
Advisors, LLC that generate fees for CI.
During April, CI Investments had gross sales of $710 million and net
sales of $140 million, comprised of $131 million in net sales of long-term
funds and $9 million of money market funds. United Financial had gross sales
of $146 million and net sales of $15 million. The $21 million in redemptions
in structured products were a result of the scheduled termination of Skylon
Capital Yield Trust. For the year-to-date, CI had gross sales of $4.4 billion
and net sales of $1.0 billion.
Also in April, CI Investments and Sun Life Financial launched SunWise
Elite Plus, which allows investors to guarantee their retirement income
through an optional Guaranteed Minimum Withdrawal Benefit (GMWB) rider. The
GMWB and other enhancements to CI's SunWise Elite Segregated Funds were
announced April 16. SunWise Elite Plus is expected to make an important
contribution to CI's sales.
In addition, Morningstar Canada announced in April that CI Investments
continued to lead the industry with 38 mutual and segregated funds holding the
top five-star rating at March 31, 2007.
Meanwhile, CI is scheduled to release its results for the first quarter
of 2007 on Thursday, May 10, 2007, on Canada Newswire and on www.ci.com/cix.
Additional information about CI's sales, assets and financial position
can be found below in the tables of preliminary statistics and on its website
in the Statistics section.-------------------------------------------------------------------------
CI FINANCIAL INCOME FUND
APRIL 30, 2007
MONTH-END STATISTICS
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MONTHLY SALES DATA GROSS SALES REDEMPTIONS NET SALES
(millions) (millions) (millions)
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CI funds excluding MMF $635 $504 $131
CI money market 75 66 9
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TOTAL CI Investments $710 $570 $140
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TOTAL United Financial $146 $131 $15
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TOTAL structured products $0 $21 -$21
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TOTAL CI $856 $722 $134
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FEE-EARNING ASSETS March 31/07 April 30/07 %
(millions) (millions) Change
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CI mutual/segregated funds $53,539 $54,258 1.3%
United Financial funds 10,103 10,115 0.1%
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$63,642 $64,373 1.1%
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Structured products/other funds 929 4,586 393.6%
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TOTAL assets under management $64,571 $68,959 6.8%
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CI administered/other assets 1,894 1,902 0.4%
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Assante/IQON assets under
administration (net of United funds) 17,924 17,924 0.0%
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Blackmont assets under administration n/a 9,848 n/a
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TOTAL FEE-EARNING ASSETS $84,389 $98,633 16.9%
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AVERAGE ASSETS UNDER MANAGEMENT March 31/07 April 30/07 %
(millions) (millions) Change
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Monthly $64,022 $69,327 8.3%
Quarter-to-date $63,706 $69,327 8.8%
Fiscal year-to-date $63,706 $67,917 6.6%
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FISCAL AVERAGE ASSETS Fiscal 2006 (Dec.) Fiscal 2007 %
UNDER MANAGEMENT (millions) (millions) Change
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Fiscal year average assets $58,735 $67,917 15.6%
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EQUITY FINANCIAL POSITION
(millions unless otherwise indicated)
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LP units 147,092,474 Bank debt $852
Trust units 135,263,043 Cash & marketable securities (38)
Total outstanding --------------------------------------
units 282,355,517 Net debt outstanding $814
Quarter-to-date --------------------------------------
weighted average Net debt to annualized EBITDA
units outstanding 282,113,983 (most recent quarter) 1.12:1
Yield at $28.50 7.6% --------------------------------------
In-the-money In-the-money equity comp.
options 3,902,055 liability (net of tax) $31
Percentage of all Terminal redemption value
options 100% of funds $778
All options % of units 1.4% Quarter-to-date equity-based
compensation(*) $5
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(*) Based on marked-to-market pre-tax equity-based compensation expense
accrual from change in unit price and vesting from last quarter-end
($27.60) to April 30, 2007 ($28.50).
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GEOGRAPHIC EXPOSURE OF AUM
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Canada 47% Asia 4%
United States 22% Other 3%
Europe 14% Cash 10%
-------------------------------------------------------------------------CI Financial Income Fund (TSX: CIX.UN) is an independent, Canadian-owned
wealth management company. CI offers a broad range of investment products and
services, including an industry-leading selection of investment funds. CI is
on the Web at www.ci.com/cix.
EBITDA (earnings before interest, taxes, depreciation and amortization)
is a non-GAAP (generally accepted accounting principles) earnings measure that
does not have any standardized meaning prescribed by GAAP. It is therefore
unlikely to be comparable to similar measures presented by other companies.
However, management believes that most shareholders, creditors, other
stakeholders and investment analysts prefer to include the use of this
performance measure in analyzing CI's results.
This press release contains forward-looking statements with respect to CI
and its products and services, including its business operations and strategy
and financial performance and condition. Although management believes that the
expectations reflected in such forward-looking statements are reasonable, such
statements involve risks and uncertainties. Actual results may differ
materially from those expressed or implied by such forward-looking statements.
Factors that could cause actual results to differ materially from expectations
include, among other things, general economic and market factors, including
interest rates, business competition, changes in government regulations or in
tax laws, and other factors discussed in materials filed with applicable
securities regulatory authorities from time to time.
For further information: Stephen A. MacPhail, President and Chief
Operating Officer, (416) 364-1145
