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CI Financial Inc. CIX-T saw its shares jump by more than 8 per cent on Thursday – their largest jump in almost 16 months – after the independent investment manager reported strong quarterly profits.

On Thursday, CI reported second-quarter net income of $158-million or 82 cents a share, up from $117-million or 57 cents in the same period a year ago.

CI shares surged after the news, before easing off to end the day up 40 cents or 2.7 per cent at $15.07.

Chief executive officer Kurt MacAlpine told analysts the results ”validate” the company’s revamped corporate strategy and capital allocation policies which have seen CI aggressively expand into the United States by purchasing more than 25 registered investment adviser firms since January, 2020.

“Our expansion in wealth management in the United States and Canada has added stability and diversification to our business, with our U.S. operations making increasing contributions to revenues and earnings,” Mr. MacAlpine said.

Market volatility affected the company’s overall level of assets under management, which dropped in the quarter to $333-billion from about $370-billion in April. Much of the decline stems from its asset management division, which dropped to $116-billion in assets in the second quarter, from $138-billion a year prior.

Mr. MacAlpine also told analysts on Thursday the company is on track to file the regulatory papers for an initial public offering with the U.S. Securities and Exchange Commission to launch an initial public offering for its U.S. wealth business, which now accounts for more than half the company.

The U.S. wealth management arm saw its assets climb to $143-billion in the second quarter, up from $83-billion in the second quarter of 2021.

The IPO was first announced in May, with CI saying it would sell up to 20 per cent of its U.S. wealth management business through a U.S offering.

The company said it intends to use the net proceeds from the offering to pay down debt, and that a final decision on the IPO size, conditions and timing is pending and will be subject to market conditions.

With a file from David Milstead

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