CI Financial Earnings: More Noise in the Quarter but Solid Movement in Debt Repayment

There was little in no-moat CI Financial's second-quarter results that would alter our long-term view of the firm. We expect to leave our CAD 16 per share fair value estimate in place. We view the shares as being fairly valued. CI Financial closed out June 2024 with CAD 130.1 billion in core assets under management, or AUM, down 0.1% sequentially but up 6.3% year over year. Outflows of CAD 0.6 billion were offset by market gains of CAD 0.5 billion during the quarter. That said, the firm's redemption rate for its Canada fund operations remains in the mid-20s relative to 15%-20% historically, as compared with an average redemption rate of 15% for the Canadian fund industry.