RE:Aren't ETFs eating mutual funds alive?There is room for both models to exist. The do-it-yourselfers are a smaller but growing percentage of the market. People need advice and are willing to pay for it. HNW individuals need more than buying ETFs online. This isn't all that's going on with this company right now.
CI has not been a growth stock. Most of the profits were being paid out in high divi which is now gone. Share buyback is in full play now. Divy investors will likely leave.
CI is taking the hit now to reduce fees that will make them more competitive and attract more assets. The company is still currently in net sales and fund performance has not been great for them the past two years. With a PE of 9.5 and a divy of 3.3%, and with aggressive share buybacks boosting EPS, I think there is opportunity for upside if the fee reductions can translate into larger assets for them.
Not sure what the fee reductions will do to projected earnings for the next year, but must be what is driving the stock lower.