Q2 2024 CI Financial Corp Earnings Call

Tia: Good morning, ladies and gentlemen. Thank you for joining today's CI Financial Q2 2024 earnings call. My name is Tia, and I will be your moderator for today's call. All lines will be muted during the presentation portion of the call, with an opportunity for questions and answers at the end. If you would like to ask a question, please press star 1 on your telephone keypad. I would now like to pass the call over to your host, Kurt McLeod, CEO of CEI Financial. Please proceed.

Tia: Good morning, ladies and gentlemen. Thank you for joining today's CI Financial Q2 2024 Earnings Call. My name is Tia, and I will be your moderator for today's call. All lines will be muted during the presentation portion of the call, with an opportunity for questions and answers at the end. If you would like to ask a question, please press star 1 or your telephone keypad. I would now like to pass the call over to your host, Kurt MacAlpine, CEO of CEI Financial. Please proceed.

Good morning, ladies and gentlemen, thank you for joining today's Ci financial Q2 2024 earnings call.

Tia: My name is Tia and I will be your moderator for today's call.

Tia: All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end.

Tia: If you would like to ask a question. Please press star one on your telephone keypad.

Tia: I would now like to pass the call over to your host Kurt Mcclard B O S. C. I financial please proceed.

Kurt MacAlpine: Good morning, everyone, and welcome to CI Financial's second quarter earnings call. Joining me is our CFO, Amit Muni.

Kurt McLeod: Good morning, everyone and welcome to <unk> Financial's second quarter earnings call.

Kurt McLeod: Good morning, everyone, and welcome to CI Financial's second quarter earnings call. Joining me is our CFO, Amit Mehta. Together, we will cover the highlights of the quarter, a review of our financial performance during the quarter, including the impact of our capital allocation, an update on Corian business performance and recent M&A activity, a discussion on the progress against our strategic priorities, and we will take your questions.

Kurt McLeod: Joining me is our CFO Amit Muni.

Kurt MacAlpine: Together, we will cover the highlights of the quarter, a review of our financial performance during the quarter, including the impact of our capital allocation, an update on Corian's business performance and recent M&A activity, a discussion of the progress against our strategic priorities, and we will take your questions. This June marked the 30th anniversary of CI Financial's IPO. Known at the time as CI Fund Management, the firm managed just under $4 billion in assets across 13 mutual funds. In the three decades since, CI has grown into a large and leading diversified wealth and asset management company.

Kurt McLeod: Together, we will cover the highlights of the quarter, a review of our financial performance during the quarter, including the impact of our capital allocation decisions and.

Kurt McLeod: An update on Korean business performance and recent M&A activity.

Kurt McLeod: A discussion on the progress against our strategic priorities.

Kurt McLeod: And we will take your questions.

Kurt McLeod: <unk>.

Kurt McLeod: This June marked the 30th anniversary of CI Financial's IPO, known at the time as CI Fund Management, when CI managed just under $4 billion in assets across 13 mutual funds. In the three decades since, CI has grown into a large and leading diversified wealth and asset management company, ending July with over $500 billion in client assets, more than $325 billion of that coming since we began executing our new strategy in 2020. Along with a 30th anniversary milestone, the second quarter produced a number of record financial results.

Kurt McLeod: This June marked the <unk> anniversary of Ci Financial's IPO.

Kurt McLeod: And at the time of Ci Fund management.

Kurt McLeod: Firm managed just under $4 billion in assets across 13 mutual funds.

Kurt McLeod: In the three decades.

Kurt McLeod: <unk> has grown into a large and leading diversified wealth and asset management company.

Kurt MacAlpine: Ending July with over $500 billion in client assets, more than $325 billion of that coming since we began executing our new strategy in 2020. Along with our 30th anniversary milestone, the second quarter produced a number of record financial results. Adjusted EPS of $0.90 is a quarterly record of 5% from the first quarter, which was our previous quarterly record. Earnings growth reflected the continued strength in capital markets, expansion of the U.S. business, and the benefit of recent share repurchases. Adjusted even for per share attributable to shareholders, it also increased 5% sequentially to a record of $1.68 per share.

Kurt McLeod: Ending July with over 500 billion in client assets with more than $325 billion of that coming since we began executing our new strategy in 2020.

Kurt McLeod: Along with the 30th anniversary milestone the second quarter produced a number of record financial results.

Kurt McLeod: Adjusted EPS of 90 cents is a quarterly record, up 5% from the first quarter, which was our previous quarterly record. Earnings growth reflected the continued strength in capital markets, expansion of the U.S. business, and the benefit of recent share repurchases. Adjusted EBITDA per share attributable to shareholders also increased 5% sequentially to a record of $1.68 per share. Additionally, we generated free cash flow of $1.01 per share, reflecting a strong cash generation by our customers. Capital allocation remained active during the quarter. We acquired two RIAs and settled deferred consideration.

Kurt McLeod: Adjusted EPS of <unk> 90.

Kurt McLeod: Orderly record up 5% from the first quarter, which was our previous quarterly record.

Kurt McLeod: Earnings growth reflected the continued strength in capital markets expansion of the U S business and the benefit of recent share repurchase.

Kurt McLeod: Yeah.

Kurt McLeod: Adjusted EBITDA per share attributable to shareholders also increased 5% sequentially.

Kurt McLeod: To a record of $1 68 per share.

Kurt MacAlpine: We generated free cash flow of $1.01 per share, reflecting the strong cash generation of our business. Capital allocation remained active during the quarter. We acquired two RIAs and settled deferred consideration.

Kurt McLeod: We generated free cash flow of $1 one per share, reflecting the strong cash generation of our business.

Kurt McLeod: Capital allocation remains active during the quarter.

Speaker Change: We acquired <unk> settled the FERC considerations.

Kurt MacAlpine: We retired greater than $860 million of bonds through a tender offer of our 2051 bonds and market repurchases of our 2030 and 2051 bonds, resulting in a $280 million pre-tax gain for shareholders. Since April, we've repurchased 9.9 million shares through two substantial issuer bids, one for 4.9 million shares in April and one for 5 million shares completed in July. Finally, we return $30 million to shareholders through our dividend in the quarter. The board also declared a dividend of 20 cents a share, payable in January, reflecting the normal cadence of declaring dividends one quarter ahead. Our Canadian Retail Asset Management business experienced $331 million in net redemption. Well, still negative on the quarter.

Kurt McLeod: We retired greater than $860 million of bonds through a tender offer of our 2051 bonds and market repurchases of our 2030 and 2051 bonds, resulting in a $280 million pre-tax gain for shareholders. Since April, we've repurchased 9.9 million shares through two substantial issuer bids, one for 4.9 million shares in April and one for five million shares completed in July. Finally, we returned $30 million to shareholders through our dividend in the quarter. The board also declared a dividend of $0.20 a share payable in January, reflecting the normal cadence of declaring dividends one quarter ahead. Our Canadian Retail Asset Management business experienced $331 million in net redemption. Well, still negative on the quarter.

Kurt McLeod: We retired greater than $860 million of bonds through a tender offer of our 2051 bonds and market repurchases of our 2030 in 2051 bonds.

Kurt McLeod: Crystallizing, a $280 million pre tax gain for shareholders.

Speaker Change: Uh huh.

Kurt McLeod: Since April we've repurchased $9 9 million shares.

Kurt McLeod: Two substantial issuer bids.

Kurt McLeod: One for $4 9 million shares in April and one for 5 million shares completed in July.

Kurt McLeod: Finally, we returned $30 million to shareholders through our dividend in the quarter.

Kurt McLeod: The board also declared a dividend of <unk> 20, a share payable in January reflecting the normal cadence of declaring dividends one quarter ahead.

Kurt McLeod: Our Canadian retail asset management business experienced $331 million net redemptions in the quarter.

Kurt MacAlpine: This is a meaningful improvement from Q1. Our wealth businesses in both Canada and the U.S. continued to generate strong net inflows in the second quarter. We executed well against our three strategic priorities to modernize asset management, expand wealth management, and globalize the economy. Investment performance across the business remains strong, with over 70% of our AUM outperforming our peers on a three-year basis. Sustained strong performance highlights the impact that the transformation we made from a series of competing boutiques to an integrated global asset manager has had on our clients.

Kurt McLeod: While still negative on the quarter. This is a meaningful improvement from Q1.

Kurt McLeod: This is a meaningful improvement from Q1. Our wealth businesses in both Canada and the U.S. continued to generate strong net inflows in the second quarter. We executed well against our three strategic priorities to modernize asset management, expand wealth management, and globalize the economy. Investment performance across the business remains strong, with over 70% of our AUM outperforming our peers on a three-year basis. Sustained strong performance highlights the impact that the transformation we made from a series of competing boutiques to an integrated global asset manager has had on our clients.

Kurt McLeod: Our wealth businesses in both Canada, and the U S continued to generate strong net inflows in the second quarter.

Kurt McLeod: We executed well against our three strategic priorities to modernize asset management and wealth management and globalize the company.

Kurt McLeod: Investment performance across the business remains strong with over 70% of our AUM outperforming our peers on a three year basis.

Kurt McLeod: The sustained strong performance highlights the impact that the transformation, we made from a series of competing boutiques to an integrated global asset manager.

Speaker Change: Is that for our clients.

Kurt McLeod: Corian had another strong quarter, delivering adjusted EBITDA growth of 6% quarter-over-quarter. In May, Corian completed the acquisition of two RIAs, and on July 31st, he closed on the acquisitions of two more, adding a combined $14 billion of client assets across the four firms. I'll now turn the call over to Amit to discuss our financial...

Kurt MacAlpine: Corian had another strong quarter, delivering adjusted EBITDA growth of 6% quarter-over-quarter. In May, Coring completed the acquisition of two RIAs, and on July 31st, we closed on the acquisitions of two more, adding a combined $14 billion of client assets across the four firms. I'll now turn the call over to Amit to discuss our financial...

Speaker Change: Korea had another strong quarter, delivering adjusted EBITDA growth of 6% quarter over quarter.

Amit: In May <unk> completed the acquisition of <unk> and on July 31, we closed on the acquisitions of two more adding a combined 14 billion of client assets across the four firms.

Kurt McLeod: I'll now turn the call over to Amit to discuss our financial results.

Amit Muni: Thank you, Kurt, and good morning, everyone. Turning to slide four, our global assets, end of the quarter, were up 3% to $489 billion, driven by positive markets across our three segments, as well as net inflows into our U.S. and Canadian wealth segments. Thank you very much.

Amit Mehta: Thank you, Kurt, and good morning, everyone. Turning to slide four, our global assets at the end of the quarter were up 3% to $489 billion driven by positive markets across our three segments as well as net inflows into our U.S. and Canadian wealth segments. Turning to our financial results on the next slide, I'll focus my comments on our... Adjusted net income was $136 million, or $0.90 per share for the quarter.

Amit: Thank you Kurt and good morning, everyone.

Amit Mehta: Turning to slide four our global assets ended the quarter up 3% to 489 billion driven by positive markets across our three segments as well as net inflows into our U S and Canadian wealth segments.

Amit Mehta: Our adjusted EBITDA increased to $252 million for the quarter, and our adjusted EBITDA margin was 40.1%. Turning to the next slide, I'll highlight the segment results and the key drivers of EBITDA and margin. Asset management EBITDA was relatively stable and came in at $159 million for the quarter.

Amit Mehta: Turning to our financial results on the next slide I'll focus my comments on our adjusted results.

Amit Mehta: Adjusted net income was $136 million or <unk> 90 per share for the quarter.

Amit Mehta: Adjusted EBITDA increased to $252 million for the quarter and our adjusted EBITDA margin was 41%.

Amit Muni: The suggested net income was $136 million, or $0.90 per share for the quarter. The adjusted EBITDA increased to $252 million for the quarter, and our adjusted EBITDA margin was 40.1%. Turning to the next slide, I'll highlight the segment results and the key drivers of EBITDA and margin... Asset management EBITDA was relatively stable and came in at $159 million for the quarter. However, margins were down due to seasonal compensation items, which I'll go through later. Canada Wealth EBITDA was down slightly to $18 million for the quarter, and margins were down due to the previously disclosed investments we are making into our custody platform.

Amit Mehta: Turning to the next slide I'll highlight the segment results and the key drivers of that EBITDA and margins.

Amit Mehta: Asset management EBITDA was relatively stable and came in at $159 million for the quarter.

Amit Mehta: Margins were down due to seasonal compensation items, which I'll go through later. Canada wealth EBITDA was down slightly to $18 million for the quarter, and margins were down due to our previously disclosed investments we are making into our custody platform. In the U.S., pre-NCI EBITDA increased to $115 million, and margins were relatively flat at 42.6%. Compared to the second quarter of last year, EBITDA increased 21%, which is greater than the invested group's preferred return.

Amit Mehta: Margins were down due to seasonal compensation items, which I will go through later.

Amit Mehta: Canada wealth EBITDA was down slightly to $18 million for the quarter and margins were down due to our previously disclosed investments we are making into our custody platform.

Amit Muni: In the U.S., pre-NCI EBITDA increased to $115 million, and margins were relatively flat at 42.6 percent. Compared to the second quarter of last year, EBITDA increased 21 percent, which is greater than the invested group's preferred return. We have some variability in our U.S. NCI this quarter due to the timing of expenses between quarters and whether the expenses were incurred within our Corian partnership or our U.S. holding company, which each have different levels of NCI ownership. The better go-forward number is looking at our first half NCI, which removes that variability.

Amit Mehta: In the U S pre NCI EBITDA increased to $115 million and margins were relatively flat at 42, 6%.

Amit Mehta: Compared to the second quarter of last year, EBITDA has increased 21%, which is greater than the investor groups preferred return.

Amit Mehta: We have some variability in our U.S. NCI this quarter due to the timing of expenses between quarters and whether the expenses were incurred within our Corian partnership or our U.S. holding company, which each have different levels of NCI ownership. The better go-forward number is looking at our first half NCI, which removes that variability.

Amit Mehta: We have some variability in our U S. Mci this quarter due to the timing of expenses between quarters and whether the expenses were incurred within our Korean partnership for our U S holding company, which each have different levels of Ncis ownership.

Amit Mehta: Better go forward number is looking at our first half NCI, which removes that variability.

Amit Muni: For purposes of modeling the non-controlling interest of our U.S. segment for future quarters, we estimate non-controlling interest at 37 percent of U.S. adjusted EBITDA when calculating our U.S. segment adjusted EBITDA. And for purposes of modeling non-controlling interest for our U.S. segment's contribution to EPS, we estimate non-controlling interest at 30% of U.S. segment adjusted EBITDA. Turning to the next slide, I'll walk through the changes in revenue. Revenues, on a comparable basis, increased 4% to $757 million.

Amit Mehta: For purposes of modeling the noncontrolling interest of our U.S. segment for future quarters, we estimate noncontrolling interest at 37% of U.S. adjusted EBITDA when calculating our U.S. segment adjusted EBITDA. And for purposes of modeling non-controlling interest for our U.S. segment's contribution to EPS, we estimate non-controlling interest at 30% of U.S. segment adjusted EBITDA. Turning to the next slide, I'll walk through the changes in revenue. Revenues, on a comparable basis, increased 4% to $757 million.

Amit Mehta: For purposes of modeling non controlling interests of our U S segment for future quarters, we estimate noncontrolling interest of 37% of U S. Adjusted EBITDA when calculating our U S segment adjusted EBITDA.

Amit Mehta: And for purposes of modeling Noncontrolling interest for our U S segment's contribution to EPS, we estimate noncontrolling interest of 30% of U S segment adjusted EBITDA.

Amit Mehta: Turning to the next slide I'll walk through the changes in revenue.

Amit Mehta: Asset management revenues were up $3 million due to positive markets, which were partly offset by slightly lower fee capture and the effect of net outflows. Canada and U.S. wealth management fees increased due to higher asset levels from positive flows and positive markets. Acquisitions in the U.S. added $2 million in revenue in the quarter.

Amit Mehta: Revenues on a comparable basis increased 4% to $757 million.

Amit Muni: Asset management revenues were up $3 million due to positive markets, which were partly offset by slightly lower fee capture and the effect of net outflows. Canada and U.S. wealth management fees increased due to higher asset levels from positive flows and positive markets. Acquisitions in the U.S. added $2 million in revenue in the quarter.

Amit Mehta: Asset management revenues were up $3 million due to positive markets, which were partly offset by slightly lower fee capture and the effect of net outflows.

Amit Mehta: Okay, and U S wealth management fees increased due to higher asset levels from positive flows and positive markets.

Amit Mehta: Acquisitions in the U S at a $2 million in revenue in the quarter.

Amit Muni: Turning to the next slide, we're going to review the major changes in expenses. On a comparable basis, total expenses increased about 8%. As G&A increased due to higher compensation-related expenses, in particular, we incurred the full quarter effect of merit increases and stock-based compensation for awards granted in the first quarter, in addition to higher headcount to support the build-out of our custody platform as we guided last quarter. We also had higher costs for investments in marketing and sales to support our three business segments and higher external professional costs.

Amit Mehta: Turning to the next slide, we're going to review the major changes in expenses. On a comparable basis, total expenses increased about 8%. As G&A increased due to higher compensation-related expenses, in particular, we incurred the full quarter effect of merit increases and stock-based compensation for awards granted in the first quarter, in addition to higher headcount to support the build-out of our custody platform as we guided last quarter. We also had higher costs for investments in marketing and sales to support our three business segments and hire external professionals.

Amit Mehta: Turning to the next slide we can review the major changes in expenses.

Amit Mehta: On a comparable basis total expenses increased about 8%.

Amit Mehta: SG&A increased due to higher compensation related to higher compensation related expenses in particular, we incurred the full quarter effect of merit increases and stock based compensation for awards granted in the first quarter. In addition to higher head count to support the Buildout of our custody platform as we guided last quarter.

Amit Mehta: We also had higher costs of our investments in marketing and sales to support our three business segments and higher external professional fees.

Amit Muni: Advisor and Dealer Fees increased due to higher revenue earned in our Canada Wealth business. Thank you. Depreciation and amortization increased due to higher depreciation of hardware and computer equipment as part of integration and new lease office space at Corriant, which we discussed on last quarter's call.

Amit Mehta: The advisor and dealer fees increased due to higher revenue earned in our Canada Wealth business. Its expense increased because of the new bond offering, as well as borrowings to fund acquisition-related obligation payments and stock buybacks. Depreciation and amortization increased due to higher depreciation of hardware and computer equipment as part of integration and new lease office space at Corrient, which we discussed on last quarter's call.

Amit Mehta: Advisor and dealer fees increased due to higher revenue earned in our Canada wealth segment.

Amit Mehta: Interest expense increased to the new because of the new bond offering as well as borrowings to fund acquisitions related acquisition related obligations payments and stock buybacks.

Amit Mehta: Depreciation and amortization increased due to higher depreciation of hardware and computer equipment as part of integration and new leased office space at Coryate, which we discussed on last quarter's call.

Amit Muni: Looking forward to the next few quarters, we anticipate interest and lease finance expenses to be in the range of $59 to $60 million in the third quarter, primarily due to interest costs from our recent bond issuance and borrowings from our credit facility to settle acquisition obligations. Also, as a reminder from last quarter, we expect higher depreciation and an amortization of $18 to $21 million over the next few quarters, reflecting the impact of integration capital expenditures. This guidance is unchanged from last quarter.

Amit Mehta: Looking forward to the next few quarters, we anticipate interest and lease finance expenses to be in the range of $59 to $60 million in the third quarter, primarily due to interest costs from our recent bond issuance and borrowings from our credit facility to settle acquisition obligations. Also, as a reminder from last quarter, we expect higher depreciation and an amortization of $18 to $21 million over the next few quarters, reflecting the impact of integration capital expenditures. This guidance is unchanged from last quarter.

Amit Mehta: Looking forward to the next few quarters, we anticipate interest and lease finance expenses to be in the range of $59 million to $60 million in the third quarter, primarily due to interest costs from our recent bond issuance and borrowings from our credit facility to settle acquisition obligations.

Amit Mehta: Also as a reminder, from last quarter, we expect higher depreciation and amortization of $18 million to $21 million over the next few quarters, reflecting the impact from integration capital expenditures.

Amit Mehta: This guidance is unchanged from last quarter.

Amit Muni: Turning to slide 9, we can review our debt and leverage. Our debt was relatively unchanged at $3.5 billion as the new bonds we raised in May were offset by a reduction in our long-dated U.S. dollar bonds, which were tendered during the quarter, and a lower credit facility balance. FX Headwinds increased depth by 24 million.

Amit Mehta: Turning to slide nine, we can review our debt and leverage. Our debt was relatively unchanged at $3.5 billion as the new bonds we raised in May were offset by a reduction in our long-dated U.S. dollar bonds, which were tendered during the quarter, and a lower credit facility balance. FX headwinds increased depth by 24 million.

Amit Mehta: Turning to slide nine we can review our debt and leverage.

Amit Mehta: Our debt was relatively unchanged at $3 5 billion as the new bonds. We raised in May were offset by a reduction in our long dated U S dollar bonds, which were tendered during the quarter and lower credit facility balance.

Amit Mehta: FX headwinds increased debt by $24 million.

Amit Muni: Our net leverage was also unchanged at 3.5 times on a reported basis. Turning to slide 10, I'll review new information we are providing on the separation of debt and acquisition liabilities for Canada and the U.S. As we've previously discussed, Canada and the U.S. have different capital priorities. The table on the right of this slide reflects the cash, debt, and M&A obligations for Canada and the U.S. at the end of the quarter.

Amit Mehta: Our net leverage was also unchanged at 3.5 times on a reported basis. Turning to slide 10, I'll review new information we are providing on the separation of debt and acquisition liabilities for Canada and the U.S. As we've previously discussed, Canada and the U.S. have different capital priorities. The table on the right of this slide reflects the cash, debt, and M&A obligations for Canada and the U.S. at the end of the quarter.

Amit Mehta: Our net leverage was also unchanged at three five times on a reported basis.

Amit Mehta: Turning to slide 10, I'll review, New information, we are providing on the separation of that an acquisition liabilities for Canada and the U S.

Amit Mehta: As we've previously discussed Canada, and the U S have different capital priorities.

Amit Mehta: The table on the right of this slide reflects the cash debt and M&A obligations for Canada, and the U S. At the end of the quarter.

Amit Muni: The U.S. has borrowed $154 million from Canada to primarily fund acquisitions. The US also has $151 million in contingent consideration obligations. Canada has $164 million remaining to pay for U.S. acquisitions. These will be fully paid off by early next year, with a large portion running off in the third quarter. Canada also has $70 million in other Canadian acquisition obligations. We will update this information quarterly so you can track how we're using the respective cash flows of the businesses to pay down their obligations and deploy them to other strategic priorities. Thank you. Let me turn the call back to Kurt.

Amit Mehta: The U.S. has borrowed $154 million from Canada to primarily fund acquisitions. The US also has $151 million in contingent consideration obligations. Canada has $164 million remaining to pay for U.S. acquisitions. These will be fully paid off by early next year, with a large portion running off in the third quarter. Canada also has $70 million in other Canadian acquisition obligations. We will update this information quarterly so you can track how we're using the respective cash flows of the businesses to pay down their obligations and deploy them to other strategic priorities. Thank you. Let me turn the call back to Kurt.

Amit Mehta: The U S S borrowed $154 million from Canada to.

Amit Mehta: To primarily fund acquisitions.

Amit Mehta: The U S also has $151 million in contingent consideration obligations.

Amit Mehta: Canada has $164 million remaining to pay for U S acquisitions.

Amit Mehta: These will be fully paid off early by early next year, but a large portion of running loss in the third quarter.

Amit Mehta: Canada also had $70 million in other Canadian acquisition obligations.

Amit Mehta: We will update this information quarterly so you can track how we're using the respected cash flows of the businesses to pay down this obligations, we deployed to other strategic priorities.

Amit Mehta: Thank you and let me turn the call back to Kurt.

Kurt McLeod: Thanks, Amit as discussed frequently take a dynamic approach to our capital allocation priorities.

Kurt MacAlpine: Thanks Amit, take a dynamic approach to our capital allocation priorities. The second quarter was very active on these, in addition to share buybacks, M&A, and settling deferred considerations. One of the actions we took was to crystallize the $282 million pre-tax gain for our shareholders through a tender offer of our 2051 bonds along with open market purchases of our 2030 and 2051 bonds. We felt the second quarter was the opportune time to realize this large gain for our shareholders, as it is likely that any unrealized gains will be reduced as interest rates contract. Currently, additional opportunities exist for us to continue to achieve accelerated de-leveraging through the repurchases of the remaining bonds that are trading at a discount so far.

Kurt McLeod: Thanks Amit, take a dynamic approach to our capital allocation priorities. The second quarter was very active on this. In addition to share buybacks, M&A, and settling deferred considerations, one of the actions we took was to crystallize the $282 million pre-tax gain for our shareholders through a tender offer of our 2051 bonds along with open market purchases of our 2030 and 2051 bonds. We felt the second quarter was the opportune time to realize this large gain for our shareholders, as it is likely that any unrealized gains will be reduced as interest rates contract. Currently, additional opportunities exist for us to continue to achieve accelerated de-leveraging through the repurchases of the remaining bonds that are trading at a discount so far.

Kurt McLeod: The second quarter was very active on this front.

Kurt McLeod: In addition to share buybacks, M&A and settling deferred considerations.

Kurt McLeod: One of the actions, we took was to crystallize the $282 million pre tax gain for our shareholders through a tender offer of our 2051 bonds along with open market purchases of our 2030 and 2051 box.

Kurt McLeod: We felt the second quarter was the opportune time to realize this large gain for our shareholders as it is likely that any unrealized gains will be reduced as interest rates contract.

Kurt McLeod: Currently additional opportunities exist for us to continue to achieve accelerated deleveraging through the repurchases. If the remaining bonds that are trading at a discount to par.

Kurt MacAlpine: We continue to rapidly scale our U.S. wealth map. Since the minority investment inquiry last May, the business has grown at a 26% compound annual growth rate. Even this growth is driven primarily from a combination of organic growth and our integration efforts. Until recently, M&A activity was running below historical levels.

Kurt McLeod: We continue to rapidly scale our U.S. wealth. Since the minority investment in Corrient last May, the business has grown even at a 26% compound annual growth rate. EBITDA growth is driven primarily from a combination of organic growth and our integration efforts. Until recently, M&A activity was running below historical levels.

Kurt McLeod: We continue to rapidly scale, our U S wealth management business.

Kurt McLeod: Since the minority investments in Korea last ne business, which has grown EBITDA at a 26% compound annual growth rate.

Kurt McLeod: EBIT growth was driven primarily from a combination of organic growth and our integration efforts until recently M&A activity was running below historical levels.

Kurt MacAlpine: As we discussed last quarter, we are nearing the completion of major real estate integration. In May, we consolidated our New York City office footprint into new office space at 101 Park Avenue. In two weeks, we will move into new space in Boston, which will be followed by Chicago in September and Miami later this year.

Kurt McLeod: As we discussed last quarter, we are nearing the completion of major real estate integration. In May, we consolidated our New York City office footprint into new office space at 101 Park Avenue. In two weeks, we will move into new space in Boston, followed by Chicago in September and Miami later this year.

Kurt McLeod: As we discussed last quarter, we are in.

Kurt McLeod: During the completion of major real estate integrations.

Kurt McLeod: In May we consolidated our New York City office footprint into New office space at 101 Park Avenue.

Kurt McLeod: In two weeks, we will move into new space in Boston.

Kurt McLeod: Which will be followed by Chicago in September and Miami later this year.

Kurt MacAlpine: The consolidation of office space is important for elevating the client experience, driving collaboration, culture, and unity across CORE. As mentioned earlier, we've supplemented our strong organic growth with the completion of four transactions in recent years, adding nearly $14 billion in client assets. In the second quarter, we closed on the acquisition of Fort Lauderdale-based Associates Family Office, which specializes in serving NFL and NBA players. We also closed on the acquisition of Cleveland-based multifamily office Paragon Advisors.

Kurt McLeod: The consolidation of office space is important for elevating the client experience, driving collaboration, culture, and unity across CORE. As mentioned earlier, we've supplemented our strong organic growth with the completion of four transactions in recent years, adding nearly $14 billion in client assets. In the second quarter, we closed on the acquisition of Fort Lauderdale-based Associates Family Office, which specializes in serving NFL and NBA players. We also closed on the acquisition of Cleveland-based multifamily office Paragon Advisors.

Kurt McLeod: The consolidation of office space is important for elevating the client experience.

Kurt McLeod: Driving collaboration culture community across Cori.

Kurt McLeod: As mentioned earlier, we've supplemented our strong organic growth with the completion of four transactions in recent months, adding nearly $14 billion in client assets.

Kurt McLeod: In the second quarter, we closed on the acquisition of Fort Lauderdale, based associates family office, which specializes in serving NFL and NBA players.

Kurt McLeod: We also closed on the acquisition of Cleveland based multifamily office Aragon advisors.

Kurt MacAlpine: Paragon focuses on ultra-high net worth families with average assets of greater than $80 million. At the end of July, we closed on two additional acquisitions. Byron Financial is a Charlotte-based, high-net-worth RIA focused on comprehensive financial planning that will deepen our presence in North Carolina.

Kurt McLeod: Paragon focuses on ultra-high net worth families with average assets of greater than $80 million. At the end of July, we closed on two additional acquisitions. Byron Financial is a Charlotte-based, high-net-worth REA focused on comprehensive financial planning that will deepen our presence in North Carolina. Emerald is South Florida-based and focuses on providing comprehensive wealth management to families with greater than $200,000 in net worth.

Kurt McLeod: Paragon focuses on ultra high net worth families average assets of greater than $80 million.

Kurt McLeod: At the end of July we closed on two additional acquisitions.

Kurt McLeod: Iron financial Charlotte based high net worth are focused on comprehensive financial planning that will deepen our presence in North Carolina.

Kurt MacAlpine: Emerald is South Florida-based and focuses on providing comprehensive wealth management for families with greater than 200 million in net worth. All four of these acquisitions were fully integrated at the time of closing, driving immediate benefits for clients and synergies for our business. We continue to make progress executing against our strategic priorities. In asset management, we've been active on the product front, both streamlining our existing lineup and launching innovative new strategies, including the Global AI ETF, which quickly scaled past $500 million.

Kurt McLeod: Emerald South, Florida based and focuses on providing comprehensive wealth management services to families with greater than $200 million in networks.

Kurt McLeod: All four of these acquisitions were fully integrated at the time of closing, driving immediate benefits for clients and synergies for our business, and we continue to make progress executing against our strategic priorities. In asset management, we've been active on the product front, both streamlining our existing lineup and launching innovative new strategies, including the global AI ETF, which quickly scaled past $500 million. In addition, we maintain strong financial discipline with even margins essentially flat for the first half of the year.

Kurt McLeod: All four of these acquisitions were fully integrated at the time of closing.

Kurt McLeod: Driving immediate benefits for clients and synergies for our business.

Kurt McLeod: We continue to make progress executing against our strategic priorities.

Kurt McLeod: In asset management, we've been active on the product front streamlining our existing lineup and launching innovative new strategies, including the global AI, ETF, which quickly scaled past $5 billion in assets.

Kurt MacAlpine: Our private market solution continues to gain traction as it is addressing an unmet need in the marketplace, providing Canadians with access to the world's leading alternative managers via a single solution. In addition, we maintain strong financial discipline, with even margins essentially flat for the first half of the year.

Kurt McLeod: A private market solution continues to gain traction as it is addressing an unmet need in the marketplace, providing canadians with access to the world's leading alternatives managers via a single solution.

Kurt McLeod: In addition, we maintained strong financial discipline with EBIT margins essentially flat the first half of the year. Despite.

Kurt MacAlpine: Despite the cyclical pressure we've endured on fee rates as a result of an active mix shift, in Canadian Wealth, we continue to have success recruiting advisors to both our Asante and Align capital platforms. In aggregate, recruited assets are up over 75% in the first half. We also continue to invest to further scale our custody business and leverage technology to provide a better client experience. We are working towards onboarding the remainder of our wealth assets and are having constructive conversations with a number of third parties.

Kurt McLeod: Despite the cyclical pressure, we've endured on fee rates as a result of an asset mix shift.

Kurt McLeod: In Canadian wealth, we continue to have success recruiting advisors to both our stocked and align capital platforms.

Kurt McLeod: In aggregate, recruited assets are up over 75% in the first half. We are working towards onboarding the remainder of our wealth assets and are having constructive conversations with a number of third parties. Margins in the business are showing the benefit of our integration efforts, with even margins up 120 basis points in the first half of the year.

Kurt McLeod: In aggregate recruited assets are up over 75% in the first half of the year.

Kurt McLeod: We also continue to invest to further scale, our custody business and leverage technology to provide a better client experience.

Kurt McLeod: We are working towards Onboarding, the remainder of our wealth assets and are having constructive conversations with a number of third parties.

Kurt MacAlpine: At Quariant, we're making progress against our strategic plan, and the investments we've made to scale and fully integrate our business are reflected in our financial results. Our EBITDA grew 6% quarter over quarter, our net flows remain strong, and our solutions and alternative offerings are growing rapidly. Margins in the business are showing the benefit of our integration efforts, with adjusted even margins up 120 basis points in the first half of the year.

Kurt McLeod: At <unk>, we're making progress against our strategic plan and the investments we've made to scale and fully integrate our business are reflected in our financial results.

Kurt McLeod: Our EBIT grew 6% quarter over quarter, our net flows remained strong and our solutions and alternatives offerings are growing rapidly.

Kurt McLeod: Margins in the business are showing the benefit of our integration efforts adjusted EBITDA margins up 120 basis points in the first half of the year.

Kurt MacAlpine: As we discussed on the previous slide, accelerated growth with the acquisition and integration of four high-quality firms so far in 2020. On the 30th anniversary of CI as a public company, we're incredibly proud of the success we've had since our inception and couldn't be more excited about how well diversified and how well positioned the firm is going forward. Thank you for your interest in CI, and we'd be happy to answer your questions.

Kurt McLeod: As we discussed on the previous slide accelerated growth with the acquisition and integration of four high quality firms so far in 2024.

Kurt McLeod: On the 30th anniversary of Ci is a public company.

Kurt McLeod: Credibly proud of the success, we've had since our inception and couldnt be more excited about how well diversified and how well positioned the firm is going forward.

Speaker Change: We thank you for your interest in <unk> and we'd be happy to take your questions.

Tia: We will now begin the QA session. If you would like to ask a question, please press star followed by one on your touchtone keypad. If for any reason you would like to remove that question, please press star followed by two. Again, to ask a question, press star 1. As a reminder, if you are using a speakerphone, please remember to pick up your handset before asking your question. We will pause here briefly to allow questions to generate and queue. The first question comes from the line of Kyle Voigt with KBW. Please proceed.

Speaker Change: We will now begin the Q&A session.

Speaker Change: I would like to ask a question. Please press star followed by one or you touched on keypad.

Speaker Change: If for any reason youll have to remove that question. Please press star followed by two.

Operator: Again, to ask a question, press star 1.

Speaker Change: Again to ask a question press star one.

Speaker Change: As a reminder, if you are using a speaker phone. Please remember to pick up your handset before asking your question.

Speaker Change: We will policy briefly to allow questions to generate in Q.

Operator: Okay.

Speaker Change: First question comes from the line of Kyle Voigt with <unk>. Please proceed.

Kyle Voigt: Hey, good morning, everyone. Maybe you have a two-part question for me on the balance sheet strategy, and then I'll hop back in the queue. So I really appreciate the updated disclosure on the segment balance sheet on slide 10. So first question, you've noted in the past the importance of Corian for having access to issuing debt on a standalone basis. I know the business is now rated, but should we expect debt to actually be issued at the sub-level, near-term, and any update on how we should think about leverage targets for that subsidiary? So that's the first question.

Speaker Change: Hey, good morning, everyone. Maybe just a two part question for me on the balance sheet strategy, and then I'll hop back in the queue.

Speaker Change: I really appreciate the updated disclosure on the segment balance sheet on slide 10. So first question you've noted in the past the importance of Korea to have access to issuing debt on a standalone basis.

Speaker Change: I know the business is now rated but should we expect expect that to actually be issued at the sub level near term and any update on how we should think about leverage targets at that subsidiary set the first question.

Kurt MacAlpine: The second part of the balance sheet question is really related to total company net leverage, relatively flat sequentially, despite some of the moves around retiring debt. I guess with the 3Q uses of capital between US wealth acquisitions you've already announced, repurchases that have also been announced, and M&A obligations that will also be paid out. Seems like we may see net leverage tick up again in 3Q. So is that correct? Or should we expect further moves on the debt retirement to offset this, as you noted was possible in the prepared remarks? Sure, so let me, thanks Kyle, I'll take them in order.

Speaker Change: Second part of the balance sheet question is really related to total company net leverage relatively flat sequentially. Despite some of the moves around retiring debt.

Speaker Change: I guess with the <unk> uses of capital between U S wealth acquisitions, you've already announced repurchases that have also been announced and the M&A obligations that will also be paid out. It seems like we may see net leverage tick up again in <unk>. So is that correct or should we expect further moves on the debt retirement to Oi.

Speaker Change: Except as you noted was possible in the prepared remarks.

Kurt McLeod: Sure, so let me, thanks Kyle. I'll take them in order.

Kurt MacAlpine: Sure, so let me, thanks Kyle, I'll take them in order. So the first question as it relates to, call it, the separation of debt. We feel we have made considerable progress from when we took the initial minority investment about a year ago. At that point, all of our cash flows were effectively commingled, and we had competing priorities across our Canadian business and our U.S. business.

Operator: Sure. So let me thanks, Kyle I'll take them in order. So so the first question as it relates to cost of separation of debt. So.

Speaker Change: We feel we made considerable progress from when we took the initial minority investment about a year ago at that point all of our cash flows.

Speaker Change: Affectively Commingled, we had competing priorities across our Canadian business and our U S business and we've taken very considerable steps to effectively ready the businesses from a total separation standpoint.

Kurt MacAlpine: And we've taken very considerable steps to effectively ready the business, total separations down. As I've touched on before, Corrigan has a separate board, has a separate management team, separate equity, obviously, and now we've fully separated the debt. The disclosures that Amit shared a few moments ago, we've effectively taken the debt and now fully assigned it to each of our respective... In terms of the entity itself that ultimately issues the debt, I'd say over time it's wait and see.

Kurt McLeod: So the first question as it relates to what we call the separation of debt. We feel we have made considerable progress from when we took the initial minority investment about a year ago. At that point, you know, all of our cash flows were effectively commingled. We had competing priorities across our Canadian business and our U.S. business, and we've taken very considerable steps to effectively prepare the business. As I've touched on before, Corrigan has a separate board, has a separate management team, separate equity, obviously, and now we've fully separated the debt.

Corey: As I touched on before Corey has a separate board as a separate management team.

Kurt McLeod: Separate equity, obviously and now we've fully separated the desk.

Kurt McLeod: The disclosures that Ahmed had shared a few moments ago, we've effectively taken the debt and now fully assigned it to each of our respective shareholders. In terms of the entity itself that ultimately issues the debt, I'd say over time it's wait and see. There's nothing kind of pressing that would cause us to go to markets right now from a Corian perspective on a standalone basis, what provides the best long-term value creation for our shareholders and what is the ideal way for us to ultimately capture those actions. So, and we'll continue to monitor and communicate that what we've done in the court.

Amit Mehta: The disclosures that Amit had shared a few moments ago, we have effectively taken the debt and now fully assigned it to each of our respective.

Kurt McLeod: <unk>.

Kurt McLeod: In terms of the entity itself that ultimately issues the debt.

Kurt McLeod: Say overtime, its wait and see.

Kurt McLeod: There is nothing kind of pressing that would cause us to go to markets right now, but from a core perspective on a standalone basis, even if we did let's just say go to market for something in the future. The question would be where is it more attractive for our shareholders.

Speaker Change: And is that doing it from Macquarie basis perspective on a standalone basis or would it be doing that at the Ci level with the debt fully attributed to Korea.

Kurt MacAlpine: perspective on a standalone basis, or would it be doing it at the CI level with the debt fully attributed to Coriance, as we've disclosed in the new table. So we're ready to do it, I guess, to summarize if that's something that we choose to pursue. But we have flexibility as to ensuring it's the most attractive financially for our shareholders with the debt fully assigned to each, a separation. As it relates to capital allocation, I'd say the easiest way to think of this is that we're just maintaining a very dynamic approach.

Kurt McLeod: As we disclosed in the new table so.

Kurt McLeod: We're ready to do it I guess to summarize if that's something that we choose to pursue.

Kurt McLeod: But we have flexibility as to ensuring it is the most attractive financially for our shareholders with the debt fully assigned to each entity and you enter the separation in the future.

Kurt McLeod: As it relates to capital allocation.

Speaker Change: I would say the easiest way to think of this we're just maintaining a very dynamic approach right. So last quarter was obviously a lot of different moving pieces as you mentioned.

Kurt MacAlpine: So last quarter was obviously a lot of different moving pieces, as you mentioned. We had a couple, we bought 9.9 million shares back effectively since April, we pursued some M&A, and we settled some deferred considerations as Canada's obligations to the U.S. have run off. We did the bond issuance and simultaneous bond tender, which was able to fund all of those priorities while keeping the aggregate leverage flat. So as we move forward, we're going to continue to look at what provides the best long-term value creation for our shareholders and what is the best way for us to ultimately capture those actions. So, and we'll continue to monitor and communicate what we did in the courtroom.

Graham Ryding: The next question comes from the line of Graham Ryding with TD Securities. Please proceed.

Speaker Change: We had a couple we bought $9 9 million shares back effectively since since April.

Speaker Change: You had some M&A.

Speaker Change: Settled some deferred considerations as Canada's obligations to the U S have run off and then we did <unk>.

Kurt McLeod: And issuance and simultaneous bond tender, which was able to fund all of those priorities work, while keeping the aggregate.

Speaker Change: Leverage flat.

Kurt McLeod: So.

Kurt McLeod: As we move forward, we're going to continue to look at.

Kurt McLeod: What provides the best long term value creation for our shareholders and what is the ideal sequencing for us to ultimately cap.

Kurt McLeod: Capture those actions so.

Kurt McLeod: And we'll continue to monitor and communicate that.

Kurt McLeod: What we've done on a quarterly basis.

Kurt McLeod: Thanks Kurt.

Speaker Change: Thank you.

Speaker Change: The next question comes from the line of Graham Ryding with TD Securities. Please proceed.

Kurt McLeod: Yeah.

Graham Ryding: Good morning. Just wondering if, you know, you're obviously targeting a lot of share buybacks. Currently, um... Would you consider at all paying off some of the preferred equity just given it's a higher cost of capital, as well, relative to some of your debt or um or other capital options?

Speaker Change: Hi, good morning.

Speaker Change: Just wondering if.

Speaker Change: You're obviously targeting a lot of share buybacks.

Kurt McLeod: Currently.

Speaker Change: Would you consider at all paying off.

Speaker Change: Some of the.

Speaker Change: The preferred.

Kurt McLeod: Um, preferred equity just given that it's a, it is a higher cost of capital, um, as well, relative to, uh, some of your debt or, um, or other capital options.

Speaker Change: The preferred equity just given that it is a higher cost of capital.

Speaker Change: Well relative to <unk>.

Kurt McLeod: Some of your debt.

Speaker Change: Or are there other capital options.

Kurt McLeod: Sure, so the way we're thinking, you know, similar to feedback, apologies for being a bit redundant with Kyle's question, but we're very dynamic with our capital allocation priorities. We're asking and looking at the preferred, call it that in the short term over the next couple of quarters. The growth rate that we've been able to achieve is effectively double the expected return of the preferred. As I mentioned, until the end of May, we didn't close any acquisitions.

Kurt MacAlpine: Sure, so the way we're thinking, you know, similar to feedback, apologies for being a bit redundant with Kyle's question, but we're very dynamic with our capital allocation priorities. We're asking and looking at the preferred, call it that in the short term over the next couple of quarters. The growth rate that we've been able to achieve is effectively double the expected return of the preferred. As I mentioned, until the end of May, we didn't close any acquisitions.

Speaker Change: Sure. So the way we are thinking similar to feedback apologies for being a bit redundant with <unk> question, but we're very dynamic with our capital allocation priorities.

Kurt McLeod: We're asking and looking at the preferred.

Kurt McLeod: Call. It in the short course, and then the short term over the next couple of quarters the growth rate that we've been able to achieve is effectively double the expected return of the preferred as I mentioned until the end of May we didn't close any acquisitions.

Kurt McLeod: The last acquisition we closed prior to that was in October of 2023, and we have had a huge outperformance relative to those expectations. So I would say, in the short term, as it relates to capital priorities, that wouldn't be at the top of the list, but it would be something that we continue to monitor as we get closer to, call it, the third anniversary.

Kurt MacAlpine: The last acquisition we closed prior to that was October of 2023, and we have had, call it, a huge outperformance relative to those expectations. So I would say, in the short term, as it relates to capital priorities, that wouldn't be at the top of the list, but it would be something that we continue to monitor as we get closer to, call it, the third anniversary, and Aaron Churchey.

Kurt McLeod: The last acquisition, we closed prior to that was October of 2023, and we have call. It a huge.

Kurt McLeod: Outperformance relative to those expectations. So I would say in the short term as it relates to capital priority space that wouldn't be at the top of the list.

Kurt McLeod: But it would be something that we continue to monitor.

Kurt McLeod: As we get closer to call it the third anniversary.

Kurt MacAlpine: Bye!

Kurt McLeod: Of that investment.

Kurt McLeod: Yeah.

Graham Ryding: Okay, understood. We are in the eye, hinting at you.

Operator: OK, understood. The I is that you have already allocated some debt to directly according already.

Speaker Change: Okay understood.

Speaker Change: Is that.

Graham Ryding: How did you fund those? Did you use... at the CI level to fund those, or have you actually allocated some debt to directly according already?

Speaker Change: But year to date how.

Speaker Change: How did you fund did you use.

Speaker Change: That ci level to fund those or.

Operator: Actually.

Operator: Allocated some debt to directly according already.

Amit Muni: Hi Graham, it's Amit. Yes, we've, as Kurt said, you know, we borrow at the CI level, and then we loan money down to the US business. And that new segmented balance sheet, you can see how much of the borrowings the US has taken from Canada to fund those acquisitions. So it comes from it comes from the Canadian business, borrowing on the credit facility, and then loading it down to the US.

Operator: Hi, Grant its Amit yes.

Operator: As Kurt said, we borrow at the CVI level, and then we loan money down to the U S business in that new.

Speaker Change: Segmented balance sheet, you can see how much of the borrowings U S has taken from from Canada to fund those acquisitions. So that comes from it comes from from the Canadian business borrowing on the credit facility and then loading it down to the U S business.

Graham Ryding: Can't understand. Thanks for watching! Your non-controlling interest, I think, was down fairly notably versus your guidance last quarter. You know what drove that and, should we expect the guidance you've given us here to be sort of a reasonable run rate going forward, or is this potentially going to move around?

Operator: Okay, that's understood. Bye.

Speaker Change: Okay understood.

Operator: Yes.

Speaker Change: Noncontrolling interest I think it was down fairly notably.

Speaker Change: Versus your guidance last quarter.

Speaker Change: What drove that and.

Speaker Change: Should we should we expect the guidance you've given us here to be sort of a reasonable run rate going forward or is this potentially going to move around.

Operator: Yeah.

Kurt MacAlpine: Alright, so, um... Graham, Amit had it highlighted. Amit, what page is that on the list?

Operator: All right. So.

Operator: So.

Operator: Graham Aman highlighted what page is that on the splits.

Amit Muni: Yeah, it was earlier in the presentation, Graham, we referred to it on slide six. So what you'll see, Graham, the guidance Amit gave...

Speaker Change: Yeah. It was earlier in the presentation Graham we referred to it on slide six so what Youll see Grandma guidance, Amit gave in the prepared remarks was effectively.

Kurt MacAlpine: So what you'll see, Sir Graham, the guidance Amit gave and the prepared remarks was effectively: There are a lot of moving pieces as it relates to NCI, right? There's NCI to the party investors, then there's the partnership NCI. We're settling burnout obligations in stock, which increases ownership in the partnership, and other things. So the kind of cleanest way that Amit articulated in the remarks was to use the blend of the two, and there's guidance that he's outlined on that page for modeling purposes.

Operator: There are a lot of moving pieces as it relates to NCI, right? There's NCI to the party investors, then there's the partnership NCI. We're settling burnout obligations in stock, which increases ownership in the partnership.

Speaker Change: There's a lot of moving pieces as it relates to NCI right, there's NCI already investors and there's the partnership MTI.

Operator: We are settling earn out obligations in stock, which increases ownership in the partnership plus.

Speaker Change: Expense attributions and other things so it's kind of a cleanest way that dominate articulated in the remarks was to use the blended the two in this guidance is outlined on that page for modeling purposes.

Kurt McLeod: Okay, understood. And I guess the last question, three and a half times leverage. Are you comfortable at this level? Or would you? uh, would you consider pushing it higher if you sound sound like some further emanated?

Graham Ryding: Okay, understood. And then my last question, three and a half times leverage. Are you comfortable with this level, or would you, uh... Would you consider pushing it higher if you found some further M&A that you wanted to pursue?

Operator: Okay.

Operator: Understood and then maybe just last question.

Kurt McLeod: Have times leverage are you comfortable at this level or would you.

Speaker Change: Would you consider pushing it higher.

Speaker Change: It sounds sounds from further M&A.

Speaker Change: So you wanted to pursue.

Kurt MacAlpine: Yeah, we're comfortable in the range that we're at. I mean, if you look at what our capital priorities are, they're distinct for Canada. And for the US, Canada's priorities are buybacks and deleveraging. We're not pursuing large-scale M&A in the Canadian marketplace. And then the US is either thoughtful M&A that aligns with our strategy or the capital and maybe ends up being Canada's obligation. So it really depends on what opportunities get presented to us and how we can best capitalize on them for long-term value creation for our shareholders. So we're looking at it dynamically across the two, but it's very close.

Kurt McLeod: Yeah, we're comfortable in the range that we're at. I mean, if you look at what our capital priorities are, they're distinct for Canada and for the US. Canada's priorities are buybacks and deleveraging. We're not pursuing large-scale M&A in the Canadian marketplace. And then the US is either thoughtful M&A that aligns with our strategy or the distribution of capital. Canadians Canada's obligation. So it really depends upon what opportunities get presented to us and how we can best capitalize on them for long-term value creation for shareholders. So we're looking at it dynamically across the two but, but very clearly stated

Speaker Change: Yes, we're comfortable in the range that we're at I mean, if you look at what our capital priorities are theyre distinct for Canada.

Kurt McLeod: And for the U S candidates priorities, our buybacks and deleveraging, we're not pursuing large scale M&A in the Canadian marketplace.

Kurt McLeod: The us is either thoughtful M&A that aligns Smith.

Kurt McLeod: Our strategy or the distribution of capital for the purposes of meeting Canadians up candidates obligation. So.

Kurt McLeod: It really depends on what opportunities get presented to us.

Kurt McLeod: And how we can best capitalize on them for long term value creation for shareholders. So.

Kurt McLeod: Looking at it dynamically across the two but very clear stated strategic priorities for each of the two businesses.

Graham Ryding: That's it for me. Thank you.

Operator: Okay, that's it for me. Thank you.

Speaker Change: Okay. That's it for me thank you.

Operator: Yeah.

Speaker Change: Thank you.

Operator: The next question comes from the line of making previous transactions with CBIC; please proceed.

Nick Priebe: The next question comes from the line of Nick Priebe with CBIC. Please proceed.

Speaker Change: The next question comes from the line of Mike <unk> with <unk>. Please proceed.

Operator: Okay, thanks. I just wanted to ask what your take is on the emerging theme in the US around cash sweep for broker dealers. Like, do you foresee the focus ever shifting to anything that might impact the Corient business in the future as it relates to the fee structure there?

Kurt MacAlpine: Okay, thanks. I just wanted to ask what your take is on the emerging theme in the US around cash sweep for broker dealers. Like, do you foresee the focus ever shifting to anything that might impact corient business in the future as it relates to the fee structure there?

Speaker Change: Okay. Thanks, I just wanted to ask what your take is on the emerging theme in the U S around cash sweep for broker dealers do you foresee the focus ever shifting to anything that might impact Korean business in the future as it relates to the fee structure there.

Kurt MacAlpine: Yeah, Corian is a fee-only RIA, so we actually don't even have a broker-dealer, and we don't self-custody. So 100% of our assets are fees on the assets that we manage on behalf of our clients. Part of the reason that we chose to pursue that business model in the U.S. was that the entire business is upheld by the fiduciary standard, which is the highest standard of care anywhere globally for the wealth management industry, and there's never been a regulatory reform or change that has been proposed by Senator Care beyond the one that we're already operating with. So, you know, getting into analyzing the impacts for other businesses, it's really just not relevant for us because 100% of our revenue is driven by the fees that we generate from the asset.

Operator: Yeah. So Cory this is a fee only.

Speaker Change: Alright, so they actually don't even have a broker dealer and we don't self custody. So a 100% of our assets our fees on the assets that we manage on behalf of our clients part of the reason that we chose to pursue that business model.

Operator: In the U S.

Speaker Change: That entire businesses have held to the fiduciary standard which is the highest standard of care anywhere globally for the wealth management industry and Theres never been a regulatory reform or change that is proposed pushing the standard of care beyond the one that we're already operating them. So no we haven't.

Kurt McLeod: standard of care beyond the one that we're already operating with. So, you know, without getting into opining on.

Kurt McLeod: Getting into opining on.

Speaker Change: Impacts for other businesses, it's really just not relevant for us because 100% of our revenues driven.

Speaker Change: On the fees that we generate from the assets we manage.

Kurt MacAlpine: And then just in the context of the refinancing that you undertook in the quarter, I understand why you took out the longest-dated piece of the debt stack because it had the largest embedded gain, but would you also consider refinancing any other series, like the 2030 notes? Is that option on the table as well?

Speaker Change: Okay, No fair enough.

Speaker Change: And then just in the context of the refinancing that you undertook in the quarter I understand why you took up the lung and longest dated piece of the debt stack because they had the largest embedded gain.

Speaker Change: But would you also consider refinancing any other series like the 2030 note because that option on the table as well.

Kurt MacAlpine: Yeah, that certainly exists. I mean, if we look at what we were looking to do and what we accomplished in the second quarter, we were able to crystallize or realize an unrealized gain that we had been communicating existed for a period of time. We anticipate that that gain will shrink as interest rates contract, and we wanted to make sure that we were able to take advantage of as much of it as we possibly could.

Speaker Change: Yes, it certainly exists I mean, if we look at what we were looking to do and what we accomplished I should say in the second quarter was we were able to crystallize our realized and unrealized gain that we have been communicating existed for a period of time.

Speaker Change: We anticipate that that gain.

Speaker Change: Shrink is interest rates contract.

Speaker Change: And we wanted to make sure that we were able to take advantage of as much of it as we possibly could obviously, we got the greatest on a per dollar basis greatest Bang for our Buck focused on the 2050 ones.

Kurt MacAlpine: Obviously, we got the greatest bang for our buck, on a per dollar basis, focused on the 2051s, and we're able to retire a significant portion of those. That trade still does exist for us on the 2030 bonds as well, and it's something that we'll continue to monitor relative to other capital allocation priorities.

Speaker Change: And we're able to retire a significant.

Speaker Change: A portion of those.

Speaker Change: That trade.

Speaker Change: Bill does exist for us on the 2030 bonds as well and it's something that we'll continue to monitor.

Speaker Change: Relative to.

Kurt McLeod: To other capital allocation priorities.

Nick Priebe: Got it. Okay.

Operator: Got it. Okay.

Speaker Change: Got it Okay and then in the prepared remarks, you alluded to the ongoing initiative to consolidate certain <unk> into regional offices.

Kurt MacAlpine: And then, in your prepared remarks, you alluded to the ongoing initiative to consolidate certain RAs into regional offices. I noticed that CapEx is trending a bit higher than usual. Was that related to that specific project in the quarter? And for how long would you expect this higher level of spend to continue?

Kurt McLeod: And then, in your prepared remarks, you alluded to the ongoing initiative to consolidate certain RAs into regional offices. I noticed that CapEx is trending a bit higher than usual. Was that related to that specific project in the quarter? And for how long would you expect this higher level of spend to continue?

Kurt McLeod: Noticed that capex is trending a bit higher than usual was that related to that specific project in the quarter and.

Speaker Change: For how long would you expect this.

Speaker Change: The higher level of spend to continue.

Kurt MacAlpine: So, yes, part of that was the upfront investment in the bills out of the real estate expenses, which are effectively coming online now. In some of those markets, we kind of have some excess capacity, and Aaron Lowe.

Kurt McLeod: So, yes, part of that was the upfront investment in the bills out of real estate expenses, which are effectively coming online now. In some of those markets, we kind of have some excess capacity. So, in spaces like New York, as an example, we have some excess capacity that's fully built out and ready if we ultimately do other acquisitions in the marketplace. Call it a bit of a headwind. Well, the upfront expenses will run off as the space comes on, so you'll see a bit of a headwind as it relates to the amortization of those expenses.

Kurt McLeod: So yes part of that was.

Kurt McLeod: <unk> investment in the build out of the real estate expenses, which are effectively coming on online now in some of those markets.

Kurt McLeod: Sure.

Kurt McLeod: We have some excess capacity to facilitate the integration of future acquisitions. So.

Kurt McLeod: Spaces like New York as an example, we have some excess capacity.

Kurt McLeod: Fully built out and ready if we ultimately do other acquisitions in the marketplace. So you will see call it a bit.

Kurt McLeod: Headwind.

Kurt McLeod: Well the upfront expenses will run office space comes on you'll see a bit of a headwind as it relates to the amortization of those expenses.

Speaker Change: <unk> he goes from Unbilled to billed over overtime.

Nick Priebe: Okay, that's it for me. Thanks very much.

Operator: Okay, that's it for me. Thanks very much.

Speaker Change: Understood. Okay. That's it for me thanks very much.

Operator: Thanks.

Speaker Change: Thank you.

Operator: The next question comes from the line of Tom McKinnon with BMO Capital; please proceed.

Tom Mackinnon: The next question comes from the line of Tom MacKinnon with BMO Capital. Please proceed.

Operator: The next question comes from the line of Tom Mackinnon with BMO capital. Please proceed.

Operator: Yeah, thanks very much. First on Canadian asset management, continued kind of fee pressure here, asset mix shift related. We haven't seen anything change in terms of net revenue there over the last several quarters, yet the assets are up. How should we be thinking about this going forward in terms of fee rates? Minimal pressure, I assume, but can you help me figure that out?

Tom Mackinnon: Yeah, thanks very much. First on Canadian asset management, continued kind of fee pressure here, asset mix shift related. We haven't seen anything changed in terms of net revenue there over the last several quarters, yet the assets are up. How should we be thinking about this going forward in terms of fee rates? Minimal pressure, I assume, but can you help me figure that out? Yeah, so there's really...

Tom McKinnon: Yes, thanks, very much just a couple of questions first on Canadian asset management.

Speaker Change: Continued kind of fee pressure here asset mix shift related.

Speaker Change: <unk> not seen anything changed in terms of the net revenue there over the last several quarters, yet the assets around or how should we be thinking about this going forward in terms of fee rates.

Operator: Modest pressure I assume but can you help me figure that out thanks.

Kurt MacAlpine: Yeah, so there's really two parts to it, Tom, to think about. One is the so-called cyclical factors, as people have taken a much more conservative stance to investing, allocating more to fixed income cash like products, which come with lower lower fee capture. Some of that, or a lot of that is. The second part of it is structural changes; new products that are typically launched in our industry, which is true for us as well, come at lower end price points than products that were launched historically.

Kurt McLeod: Yeah, so there's really two parts to it, Tom, to think about. One is the so-called cyclical factors, as people have taken a much more conservative stance to investing, allocating more to fixed income cash like products, which come with lower, lower fee capture. Some of that, or a lot of that, is structural changes; new products that are typically launched in our industry, which is true for us as well, come at lower price points than products that were launched historically.

Speaker Change: Yes, so there's really two parts to it.

Kurt McLeod: Yeah. So there's really not.

Tom: Tom to think about one is the <unk>.

Kurt McLeod: Call. It the cyclical factors as people have taken a much more conservative stance to investing allocating more to fixed income cashback products, which come with lower lower fee capture.

Kurt McLeod: Some of that or a lot of that is cyclical.

Kurt McLeod: Second part of it is structural changes.

Kurt McLeod: New products that are typically launched in our industry, which is which is true for us as well come at lower prices.

Kurt McLeod: Price points.

Kurt McLeod: <unk> that were launched historically, so it's really just a combination of the cyclical which is probably magnified a little bit more given the market environment plus some of the structural.

Kurt McLeod: So, it's really just a combination of the cyclical, which has probably magnified it a little bit more given the market environment, plus some of the structural elements as well. One of the things we started to do a couple of quarters ago was to share our average feed capture with our quarter-end results just to provide visibility and ease of that information to all of you looking at it.

Kurt MacAlpine: So it's really just a combination of the cyclical, which has probably magnified it a little bit more given the market environment, plus some of the structural elements as well. One of the things we started to do a couple of quarters ago was to share our average fee capture with our quarterly results, just to provide visibility and ease of that information to all of you looking at it.

Kurt McLeod: Elements as well.

Kurt McLeod: One of the things we started to do a couple of quarters ago was to share.

Kurt McLeod: Our average fee capture for the business and disclose that with our quarter end results just to provide visibility.

Kurt McLeod: And he said that information to all of you are looking at.

Operator: Yeah, that's helpful. Thanks. And just help me understand with respect to a potential IPO of Corrient, is it the intention to have debt reside at the Corrient level, and as a follow-up to that, in terms of the minority investors, are they, in terms

Tom Mackinnon: Yeah, that's helpful. Thanks.

Speaker Change: Yeah, that's helpful. Thanks and.

Speaker Change: Just help me understand with respect to.

Tom Mackinnon: And just help me understand with respect to a potential IPO of Coriant. Is the intention to have debt reside at the Coriant level? And as a follow-up to that, are they, in terms of the minority investors?

Operator: Potential.

Speaker Change: Oh of course.

Speaker Change: Is the intention to have that reside at the Korean level.

Speaker Change: And as a follow up to that.

Speaker Change: In terms of the minority investors are.

Speaker Change: Are they in terms of their liquidation preference is that just strictly cash or are they able to take any of this.

Speaker Change: That that's been blended down to the U S side.

Kurt McLeod: Yes, so the reason we've started to separate the debt is that that debt that's assigned to Corrient in a separation will ultimately travel. So whether that's via an IPO, whether that's via another, call it, form of exit, the debt is intended to ultimately track. So what you'll see over time, just given our stated priorities for CI, CI's share of the debt will decline over time, and Corian's share of the debt, acquisitions will grow, and whatever portion is assigned to Coring at that point in time will ultimately travel with the business.

Kurt MacAlpine: Yes, so the reason we've started to separate the debt is that that debt that's assigned to Corrient in a separation will ultimately travel. So whether that's via an IPO or another form of exit, the debt is intended to ultimately track. So what you'll see over time, just given our stated priorities for CI, CI's share of the debt will decline over time, and Corian's share of the debt, assuming we continue to do that, will grow, and whatever portion is assigned to Coring at that point in time will ultimately travel with the business. As it relates to, call it, the next action for the business, minority investors have the opportunity to participate or roll into the IPO and convert their shares into common equity shares in a publicly traded company.

Speaker Change: Yes. So the reason we have started to separate the debt.

Speaker Change: Is that that debt that's assigned to Koreans in a separation of the businesses will ultimately travel with Macquarie.

Kurt McLeod: So.

Kurt McLeod: Whether that's via an IPO, whether that's the another call it form of excess that is intended to ultimately.

Kurt McLeod: So what youll see over time, just given our stated priorities for Ci ci's share of the debt.

Kurt McLeod: We'll decline overtime and Koreans share of the debt.

Kurt McLeod: Assuming we continue to do acquisitions will grow and whatever portion is assigned to <unk> at that point in time.

Kurt McLeod: We'll ultimately travel with the business.

Kurt McLeod: As it relates to calling it the next action for the business, minority investors have the opportunity to participate or roll into the IPO and convert their shares into common equity shares in a publicly traded company as part of that.

Speaker Change: As it relates to call. It next action for the business.

Kurt McLeod: The minority investors have the opportunity to participate enroll into the IPO and convert their shares into common equity shares in a publicly traded traded.

Kurt McLeod: Traded company as part of that accident.

Kurt McLeod: Yeah. Now, they have a liquidation preference that. Is that taken out in terms of cash when that happens? Well, it depends. I mean, it can be two.

Kurt MacAlpine: Yeah, now they have a liquidation preference that is taken out in terms of cash when that happens? Well, it depends. I mean, it can be two.

Kurt McLeod: Yes.

Kurt McLeod: They have a liquidation preference that.

Kurt McLeod: Is that taken out in terms of cash when that happens.

Kurt McLeod: Well, it depends. I mean, if we took them out, we would settle it in cash, and the company would go public that would roll into ownership of the new public company. So we don't have to settle it, it's not debt on the equity of travels, and that will either converge, in a private jail, potentially get liquidated or converted into a private sale, or converted into an IPO, and it would settle in cash to the extent that we chose to.

Kurt MacAlpine: Well, it depends. I mean, if we took them out, we would settle it in cash, and the company public that would roll into ownership of the new public company. So we don't have to settle it, it's not debt on the equity of travels, and that will either converge or be converged in a private jail. Mark Allen What ve about market capital? What I ve been doing is sort of a commentary video. What I am most curious about is your tactics.

Speaker Change: What's the pads I mean, if we took them out we would settle that in cash if we took the company public that would roll into ownership of the new public company.

Kurt McLeod: Okay.

Kurt McLeod: Right.

Kurt McLeod: The satellite it's not it's not that they're on the equity of travels in that either convert.

Speaker Change: Private sale.

Kurt McLeod: Potentially get liquidated or convert in a private sale convert in an IPO and we settled with cash to the extent that we chose to just take them out.

Tom Mackinnon: I understand. Okay. Thanks so much.

Operator: I understand. Okay. Thanks so much.

Speaker Change: Understood. Okay. Thanks, so much.

Operator: Yeah.

Speaker Change: Thank you.

Operator: The next question comes from Milana Jeff Cohn with RBC Capital Markets. Please proceed.

Geoffrey Kwan: The next question comes from Milana Jeff Kahn with RBC Capital Markets. Please proceed.

Operator: The next question comes from the line of Geoff Kwan with RBC capital markets. Please proceed.

Operator: Okay.

Operator: Hi, good morning. The first question I had was that you had a good start with that new AI ETF. Just was wondering if there's anything to share on potential and or any kind of upcoming new product launches that you're working on.

Geoffrey Kwan: Hi, good morning. You had a good start with that new AI ETF. Just was wondering if there's anything to share on potential and or any kind of upcoming new product launches that you're working on.

Operator: Hi.

Jeff Cohn: Morning first question I had was you had a good start with that new gain I E.

Operator: Just was wondering if there's any you can share on.

Speaker Change: On potential indoor kind of upcoming new product launches.

Speaker Change: Youre working on.

Kurt MacAlpine: Yeah, we don't give a lot of... just given the competitive nature of product launches, we don't give a lot of visibility into what's coming. Hopefully, people have seen, we've demonstrated, and everyone else is looking for opportunities to launch or bring strategies to market for Canadian investors that don't otherwise exist or exist and deliver in a highly differentiated way. So it's a huge priority for us and something that you'll continue to see us push the envelope on.

Kurt McLeod: Yeah, we don't give a lot of. Just given the competitive nature of product launches, we don't give a lot of visibility into kind of what's coming. But hopefully, people have seen, we've demonstrated, strong skill or capability in product innovation, whether that's been thematic ETFs, the first mover advantage that we took in both liquid and illiquid, alternatives, crypto, and obviously, more recently, our AI strategy. So we're constantly looking for opportunities to launch or bring strategies to market for Canadian investors that don't otherwise exist or exist and deliver in a highly differentiated way. So it's a huge priority for us and something that you'll continue to see us push the envelope on.

Speaker Change: Yes, we don't give a lot of.

Kurt McLeod: Just given the competitive nature of product launches, we don't give a lot of visibility into kind of what's on the come.

Kurt McLeod: But hopefully people have seen we've demonstrated.

Kurt McLeod: Strong scale or capabilities product innovation, whether that's been thematic Etfs first mover advantage that we took in both liquid and illiquid alternatives.

Kurt McLeod: Crypto.

Kurt McLeod: And obviously more recently, our AI strategy so <unk>.

Kurt McLeod: Constantly looking for opportunities to launch or bring strategies to market for Canadian investors.

Kurt McLeod: Otherwise exist or exist in delivering a highly differentiated way so it's a huge price.

Kurt McLeod: Priority for us and something that Youll continue to see us push the envelope on as a team.

Kurt McLeod: Okay.

Operator: My second question was, kind of over the past decade, the company has bought back roughly half of the shares it stands on. As you look forward, and it seems like you're continuing to be quite active buying back stock, how do you think about that balance between, um, the share liquidity versus, you know, the share buyback activity that you want to be doing?

Geoffrey Kwan: My second question was, kind of, over the past decade, the company has bought back roughly half of the shares it stands on. As you look forward, and it seems like you're continuing to be quite active buying back stock, like how do you think about that balance between Share Liquidity versus the shared buyback activity that you want to be doing?

Kurt McLeod: Okay.

Speaker Change: My second question was kind of over the past decade. The company has bought back I think it's roughly half the shares outstanding.

Speaker Change: And if you look forward.

Operator: Seems like you're continuing to be quite active buying back stock like how do you think about that balance between.

Speaker Change: The share liquidity versus.

Speaker Change: The share buyback activity that you want to be doing.

Kurt MacAlpine: So, Geoff, we had a tough time hearing your question. So, let me just try to replay it, and you tell me if I'm..., captured it appropriately. Was your question, as we continue to buy back shares, how do we think about the liquidity in our stock relative to historical liquidity when we had a larger float? Was that the question?

Kurt McLeod: So Jeff, we had a tough time hearing your question, so let me just try to replay it, and you tell me if it's fine.

Speaker Change: So Jeff we had a tough time hearing your questions. So let me just.

Jeff: Tried to replay at any tell me if I captured it appropriately. What's your question as we continue to buy back shares how do we think about the liquidity.

Kurt McLeod: Captured it appropriately was your question as we continue to buy back shares. How do we think about the liquidity in our stock? Relative to historical liquidity when we had a larger float was that the question?

Jeff: In our stock.

Jeff: Relative to historical liquidity, when we had a larger float was that the question.

Geoffrey Kwan: Yeah, exactly. Sorry, I'm not quite sure why. Yeah, but that's exactly what my question was. Okay, perfect. Yes, I mean, when you look at our stock today, I mean, we

Operator: Yeah, exactly. Sorry, I'm not quite sure why. Yeah, but that's exactly what my question was.

Jeff: Yeah, exactly sorry, im not quite sure why it yet, but that's exactly what my question was.

Kurt MacAlpine: Okay, perfect. Yes, I mean, when you look at our stock today, I mean, we're still a very liquid stock, and that creates the two mechanisms by which we buy back stock, one is via a substantial issue or bid. As part of the process for filing for the tender, we have to do various liquidity tests that we have to meet. We've comfortably cleared all those liquidity tests, which is just reflective of the volume that we've seen in the marketplace in a backward-looking way.

Kurt McLeod: Okay, perfect. Yeah, so when you look at our stock today, I mean, it's still a very liquid stock, and that creates. You know, the two mechanisms by which we buy back stock: one is via a substantial issue or bid. As part of the process for filing for the tender, we have to do various liquidity tests that we have to meet.

Speaker Change: Okay perfect, Yes, I mean, when you look at our stock today.

Kurt McLeod: It's still a very liquid stock.

Kurt McLeod: Yeah.

Kurt McLeod: And that creates.

Kurt McLeod: The two mechanisms by which we buy back stock when it would be a substantial issuer bid as part of the process for.

Kurt McLeod: Filing for the tender we have to do.

Kurt McLeod: <unk> liquidity tests.

Kurt McLeod: That we have to meet comfortably cleared all of those liquidity tests, which is just reflective of the volume.

Kurt McLeod: We've comfortably cleared all those liquidity tests, which is just reflective of the volume that we've seen in the marketplace in a backward-looking way. We have a normal course issue or bid that we renewed a few weeks ago that obviously allows us to buy shares in the open marketplace. So, to date, we haven't seen anything that has prevented us from getting access to the shares that we ultimately want. You know, if and when we get to a point where liquidity increases, we can take a look at it at that point in time.

Kurt McLeod: That we've seen in the marketplace on a backward looking manner.

Kurt MacAlpine: We have a normal course issue or bid that we renewed a few weeks ago that obviously allows us to buy shares in the open marketplace. So, to date, we haven't seen anything that has prevented us from getting access to the shares that we ultimately want.

Kurt McLeod: Having a normal course issuer bid that we renewed a few weeks ago.

Kurt McLeod: That obviously allows us to buy shares in the open marketplace so to date.

Kurt McLeod: We haven't seen anything that has prevented us from getting access to the shares.

Kurt McLeod: We ultimately want.

Geoffrey Kwan: If and when we get to a point where liquidity increases, we can take a look at it at that point in time. But right now, we're just singularly focused on how well the business is performing operationally and how well that is reflected in our share price. If those two things align, you won't see us buying a lot of shares. But if there's a meaningful gap between those two things, you'll see us buying. And then... liquidity will be assessed on an ongoing basis as that share count continues to reduce. Okay, thank you.

Kurt McLeod: And when we get to a point where liquidity dries up.

Kurt McLeod: We can take a look at at that point in time, but right now we're just singularly focused on how well is the business performing operationally and how well is that reflected in our share price.

Tia: Thank you. Again, to ask a question, please press star 1. We will pause here briefly to allow questions to generate in queue. There are no additional questions left at this time. I will now pass the call back to Kurt MacAlpine for closing remarks.

Kurt McLeod: But right now, we're just singularly focused on how well the business is performing operationally and how well that is reflected in our share price. And if those two things align, you won't see us buying a lot of shares. If there's a meaningful gap between those two things, you'll see us buying; liquidity will be assessed on an ongoing basis as that share count continues to reduce. Okay, thank you.

Kurt McLeod: Two things align you won't see us buying a lot of shares there's a meaningful gap between those two things youll see us buying and then.

Kurt McLeod: Liquidity will be.

Speaker Change: <unk> on an ongoing basis is that share count.

Speaker Change: Can use to reduce.

Kurt McLeod: No.

Speaker Change: Okay. Thank you.

Operator: Thank you. Again, to ask a question, please press star 1. We will pause here briefly to allow questions to generate in queue. There are no additional questions left at this time. I will now pass the call back to Clark McClain for closed remarks.

Speaker Change: Thank you.

Speaker Change: Again to ask a question please press star one.

Operator: We will pause briefly to allow questions to generate in Q.

Speaker Change: There are no additional questions at this time.

Operator: I will now pass the call back to Chuck Macfarlane for closing remarks.

Kurt McLeod: Thanks, everyone, for your interest in CI. We look forward to chatting with you next quarter.

Kurt MacAlpine: Thank you everyone for your interest in CI, and we look forward to chatting with you next quarter.

Clark McClain: Thanks, everyone for your interest in <unk>, and we look forward to chatting with you next quarter.

Operator: That concludes today's conference call. Thank you. You may now disconnect your line.

Operator: That concludes today's conference call. Thank you. You may now disconnect your line.

Kurt McLeod: That concludes today's conference call. Thank you you may now disconnect your line.

Operator: Okay.

Kurt MacAlpine: There's nothing kind of pressing that would cause us to go to markets right now from a core perspective on a stand-alone base. Even if we did, let's just say, go to market for something in the future, the question would be, where is it more attractive for our shareholders? And is that doing it from a question?