TSX Symbol: CIX.UN
TORONTO, Nov. 4 /CNW/ - CI Financial Income Fund ("CI") today reported
assets under management of $55.9 billion and total fee-earning assets of
$82.0 billion as of October 31, 2008.
CI subsidiaries CI Investments Inc. and United Financial Corporation had
combined gross sales of $836 million. Retail net sales of long-term funds were
$10 million.
CI's sales during the month also included $340 million in net redemptions
related to several series of deposit notes, which use asset allocation
strategies in which money is moved out of mutual funds when markets are
declining. These institutional transactions reflect a rebalancing of the
deposit notes and not a redemption by clients from the product. As a result of
this rebalancing, CI had overall net redemptions of $340 million.
"To have positive long-term fund sales during one of the worst months on
the markets in history is extraordinary," said Stephen A. MacPhail, CI
President. "Our sales reflect the strength of our portfolio managers and the
diversity and excellent relative performance of our lineup. Portfolio managers
such as Gerry Coleman of Harbour Advisors, Eric Bushell of Signature Global
Advisors, and Daniel Bubis of Tetrem Capital Management have outperformed the
index for the month and the year-to-date."
CI's best-selling products in October included the SunWise Elite
Segregated Funds, including SunWise Elite Plus funds with the guaranteed
minimum withdrawal benefit, which provides a guaranteed income for life. Other
top sellers included the Harbour Funds, the Cambridge Funds, Portfolio Series
and the Evolution Private Managed Accounts, a new managed solution that was
launched by United Financial in September.
For the year-to-date, CI had gross sales of $10.0 billion and net sales
of $1.5 billion. Total assets under management at October 31, 2008 consisted
of investment funds at CI Investments and United Financial of $51.9 billion,
institutional assets of $3.5 billion and structured product assets of
$437 million. CI also reported assets under administration of $25.1 billion,
which consisted of $18.4 billion in assets under administration at Assante
Wealth Management (Canada) Ltd. and $6.7 billion in assets under
administration at Blackmont Capital Inc. Other fee-earning assets totalled
$1.1 billion.
Additional information about CI's sales, assets and financial position
can be found below in the tables of preliminary statistics and on its website,
www.ci.com/cix, in the Statistics section.-------------------------------------------------------------------------
CI FINANCIAL INCOME FUND
October 31, 2008
MONTH-END STATISTICS
-------------------------------------------------------------------------
MONTHLY SALES DATA GROSS SALES REDEMPTIONS NET SALES
RETAIL MANAGED FUNDS (millions) (millions) (millions)
-------------------------------------------------------------------------
Long-term funds $660 $650 $10
Short-term funds $138 $148 -$10
Sales related to deposit notes $38 $378 -$340
-------------------------------------------------------------------------
TOTAL RETAIL FUNDS $836 $1,176 -$340
-------------------------------------------------------------------------
-------------------------------------------------------------------------
-------------------------------------------------------------------------
FEE-EARNING ASSETS September 30/08 October 31/08 %
(millions) (millions) Change
-------------------------------------------------------------------------
Retail managed funds $58,549 $51,907 -11.3%
-------------------------------------------------------------------------
Structured products 490 437 -10.8%
-------------------------------------------------------------------------
TOTAL retail assets
under management $59,039 $52,344 -11.3%
-------------------------------------------------------------------------
Institutional managed assets 3,920 3,528 -10.0%
-------------------------------------------------------------------------
TOTAL assets under
management $62,959 $55,872 -11.3%
-------------------------------------------------------------------------
Assante assets under
administration(*) 20,819 18,425 -11.5%
-------------------------------------------------------------------------
Blackmont assets under
administration 7,832 6,670 -14.8%
-------------------------------------------------------------------------
TOTAL assets under
administration $28,651 $25,095 -12.4%
-------------------------------------------------------------------------
CI other fee-earning assets 1,219 1,079 -11.5%
-------------------------------------------------------------------------
TOTAL FEE-EARNING ASSETS $92,829 $82,046 -11.6%
-------------------------------------------------------------------------
-------------------------------------------------------------------------
AVERAGE RETAIL ASSETS September 30/08 October 31/08 %
UNDER MANAGEMENT (millions) (millions) Change
-------------------------------------------------------------------------
Monthly $61,502 $52,412 -14.8%
-------------------------------------------------------------------------
Quarter-to-date $62,875 $52,412 -16.6%
-------------------------------------------------------------------------
Fiscal year-to-date $63,508 $62,381 -1.8%
-------------------------------------------------------------------------
-------------------------------------------------------------------------
FISCAL AVERAGE RETAIL ASSETS Fiscal 2007 Fiscal 2008 %
UNDER MANAGEMENT (millions) (millions) Change
-------------------------------------------------------------------------
Fiscal year average
retail assets $64,958 $62,381 -4.0%
-------------------------------------------------------------------------
-------------------------------------------------------------------------
EQUITY FINANCIAL POSITION
(millions unless otherwise indicated)
-------------------------------------------------------------------------
LP units 146,174,337 Bank debt $1,200
Trust units 133,633,076 Cash & marketable securities (180)
Total -------------------------------------
outstanding Net debt outstanding $1,020
units 279,807,413 -------------------------------------
Quarter-to-date Net debt to annualized EBITDA
weighted average (most recent quarter) 1.46:1
units outstanding 277,491,199 -------------------------------------
Yield at $17.50 2.7% In-the-money option liability
In-the-money (net of tax) $1
options 1,072,320 Terminal redemption value $801
Percentage of all of funds
options 43% Quarter-to-date equity-
All options % based compensation(xx) $0
of units 0.9%
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(*) Includes CI and United Financial investment fund assets administered
by Assante advisors.
(xx) Estimate partially based on marked-to-market pre-tax option expense
accrual from change in unit price and vesting from last quarter-end
($18.00) to October 31, 2008 ($17.50).
-------------------------------------------------------------------------
GEOGRAPHIC EXPOSURE OF AUM
-------------------------------------------------------------------------
Canada 45% Asia 3%
-------------------------------------------------------------------------
United States 25% Other 4%
-------------------------------------------------------------------------
Europe 10% Cash 13%
-------------------------------------------------------------------------
-------------------------------------------------------------------------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, and 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;
however, CI management believes that most unitholders, creditors, other
stakeholders and investment analysts prefer to include the use of this
performance measure in analyzing CI's results. EBITDA is a measure of
operating performance, a facilitator for valuation and a proxy for cash flow.
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, (416) 364-1145
