Ongoing Market Volatility Will Affect Flows and AUM Levels at CI Financial in the Near Term

We believe CI Financial's long-term track record of above-average investment performance had historically served it well as non-bank-affiliated Canadian asset managers came under greater competitive pressures from the Big 6 Canadian Banks. Third-party distributors control most of the distribution in Canada, and CI Financial's long track record of solid fund performance historically allowed it to consistently generate positive annual organic growth, even as its peers struggled with net outflows. That said, 2017-21 served as a reminder of just how difficult the asset management business can be, as performance issues and several institutional clients moving their assets to in-house portfolio management led to year after year of negative organic AUM growth (which averaged negative 4.2% annually the past five calendar years).