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CI Financial Corp T.CIX

Alternate Symbol(s):  CIXXF

CI Financial Corp. is a diversified global asset and wealth management company operating primarily in Canada, the United States and Australia. The Company is engaged in the management and distribution of a range of financial products and services, including wealth management, insurance, and others. The Company operates through three segments: Asset Management, Canadian Wealth Management, and U.S. Wealth Management. The Asset Management segment includes CI Global Asset Management, which operates in Canada, and GSFM Pty Ltd., which operates in Australia. The Canadian Wealth Management segment includes the operations of CI Assante Wealth Management, Aligned Capital Partners, CI Private Wealth, Northwood Family Office, CI Direct Investing and CI Investment Services. The U.S. Wealth Management segment includes Corient Private Wealth LLC, an integrated wealth management company providing comprehensive solutions to ultra-high-net-worth and high-net-worth clients across the United States.


TSX:CIX - Post by User

Post by zack50on Sep 03, 2021 9:28pm
204 Views
Post# 33813832

WindsorGuy, in your last post you stated...

WindsorGuy, in your last post you stated...

"Asset management is a more profitable business than banking at this time. Lots of consumers and business have heavy debt. Banks will have to increase provisions for bad loans. I also own some gold which is up while banks are dropping."

In no particular order, here are some points I'd like to present and then I'll leave the topic of CI vs. Banks alone... as I'm sure many followers of this bullboard are interested only in CI Financial.

The two most critical measures of financial strength are earnings and capital... both of these have never been higher for the Canadian Banks. Thus, the banks now have the flexibility to declare above-average dividend growth and share buybacks.

I previously stated that as soon as the OSFI gives the green light, the banks would most likely increase their dividend by about 6%. With the copious amounts of cash on hand, I'm now willing to bet that the dividend increase will be at least 10%. Of course, the OSFI is taking a cautious position with predictions of a potential  4th wave of COVID-19 as fall weather approaches... so, we will most likely have to wait until fourth-quarter reporting season for the declaration.

The banks had very strong 1st quarter and even stronger 2nd quarter earnings... they posted results that far exceeded expectations. BMO and BNS, the two banks that I hold, have reclaimed 100s of millions of $$$ from reserves set aside for anticipated losses which basically never materialized and in fact have dropped to very low levels. It is my understanding that the other Canadian Banks have made similar reclaimations.

In terms of CIX and the banks as an investment... I purchased all three stocks in March/April of 2020. In a previous post I presented a comparison of the percentage gain in share price and dividend yield... the banks were superior on both accounts... they still are. I'm not sure which time frame you use to indicate that, "gold is up while banks are dropping", but if we use a 1-year chart for Gold, then Gold is down and the Banks are still up. 

A few more tidbits for you... While "lots of consumers and business have heavy debt", there are lots of consumers and businesses that have amassed hugh deposits in bank accounts. Credit card spending is on the rise and this is slowly rebounding to 2019 levels. Borrowing is increasing, mortgages are up, commercial loan activity is growing.

Rising consumer spending and corporate borrowing gives banks the confidence to say that strong profits will continue.

I like CI too, lol.

Cheers to you Sir!


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