Section 1: Company Overview and Fundamental Insights

1.1 Company Overview:

CI Financial Corp. (TSX: CIX) is a diversified global asset and wealth management company operating in Canada, the United States, and Australia. The Company’s primary business is the management and distribution of a range of financial products and services, including mutual funds, segregated funds, exchange-traded funds, financial planning, insurance, investment advice, wealth management, etc. It operates through two segments: asset management and wealth management. 

1.2 The Key Positives, Negatives, Investment Highlights and Risks

1.3 Top 10 Shareholders:

The top 10 shareholders together form ~27.30% of the total shareholding. Chang (G Raymond) and Holland (William Thomas) hold a maximum stake in the company at ~­­­5.45% and ~4.96%, respectively.

1.4 Key Metrics:

The company reported growing total assets under management numbers which witnessed a growth on sequential basis as well as on yearly basis. Furthermore, the company U.S wealth management numbers are also increasing, which is a key positive. Additionally, the group clocked industry beating operating margins.

Section 2: Business Updates and Financial Highlights

2.1 Recent Updates: The below picture gives an overview of its recent activities, such as information regarding its two acquisitions in U.S and dividend distribution announcement.

2.2 Insights on Q3 2022 Financial Performance:

Section 3: Key Risks and Company Outlook:

Section 4: Stock Recommendation Summary:

4.1 Price Performance and Technical Summary:

4.2 Fundamental Valuation

Valuation Methodology: Price to Book Value Multiple Based Relative Valuation (Illustrative)

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is Dec 7, 2022. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and downtrend may take a pause backed by demand or buying interest.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and uptrend may take a pause due to profit booking or selling interest.

Stop-loss: In general, it is a level to protect further losses in case of any unfavorable movement in the stock prices.

Disclaimer

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