CIX reported Q1 numbers, and revenue was below forecast and also investors were also concerned about 'light' cash flow. Flow trends will continue to be in focus for CI Financial after C$1.3 billion of 1Q net redemptions in its Asset Management business, concentrated in balanced and cash strategies. Stronger markets are a tailwind for fees, and US and Canadian Wealth Management may continue holding up better than the Asset Management business. CI is still making progress separating its US and Canadian businesses and paying down M&A obligations, with C$106 million expected in 2Q and the remainder satisfied by January 2025. Deleveraging efforts will accelerate in 2025 once these obligations run off. For now, CI may remain active buying back shares using free cash flow in its Canadian business, while Corient could continue seeking acquisitions in the US market.
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