AGFMF - CI Financial: Cost Control Initiative Not Enough To Offset Revenue Decline
Investment Thesis
CI Financial (CIFAF) [TSX:CIX] delivered another weak quarter in its Q1 2019 earnings. The company saw both of its top and bottom lines decline in the quarter. Although CI Financial has done well to control its operating expenses in the past two quarters, it is still battling against net outflows in its assets under management. We believe industry fundamentals remain unfavorable as people continue to favor ETFs than actively managed funds. In addition, competition from other banks also makes it difficult for CI Financial to grow its AUMs. The company is