Value-Driven, Client-Focused
2019 Annual Report
We are at the forefront of
investment management
science and passionate about
creating sustainable wealth
for our clients.
Managing in
Times of Crisis
As at April 21, 2020
To our trusted shareholders, clients
and employees,
Given the rapidly evolving nature and
consequences that the spread of the
coronavirus has had on financial markets,
businesses and livelihoods, we wanted to
take this opportunity to share an update
on the situation, our views, and the steps
that Fiera Capital is taking to mitigate
these impacts.
Indeed, we live in a time where we are all interconnected,
and markets are more correlated than ever before.
At the time of writing, there is still much uncertainty as to
when we reach the trough and start seeing the economy pick
back up. We believe that one of two things must happen to
return to a normal economic environment and rebuild positive,
solid sentiment in the population and in the marketplace. The
first is the discovery and approval of a vaccine or treatment
against COVID-19, which could take anywhere from 12 to 18
months if the remedy comes from a new drug. The second is
the discovery that an existing drug can be used as a cure, in
which case the time to economic recovery could be shorter.
In order to safeguard the resilience of our business, we
have used different macroeconomic environments as the
Recap on the developments leading up to today
backdrop for stress-testing scenarios.
In February 2020, news of the coronavirus outbreak began
upsetting stock markets globally. On March 11, the virus was
Stress-testing the resiliency of our business
confirmed as a pandemic by the World Health Organization.
Those of you who tuned into our Q4 2019 earnings call on
Since then, heightened anxiety around COVID-19 has
March 19, 2020 have already heard us discuss the importance
sparked persistent uncertainty, causing a sell-off in global
that stress-testing plays at Fiera Capital, and even more so in
equity markets and undoing market gains across industries,
the current turbulent macroeconomic environment.
halting stock exchanges, and prompting central banks to take
We are running simulations where we push inputs, such
action by lowering key interest rates.
as recession scenarios, to assess the outcome on the financial
Uncertainty has persisted in the markets for weeks. The
stability and resiliency of the firm.
downturn in the global economy sparked by COVID-19 has
This illustrates the macroeconomic backdrop against
affected all investors. The potential implications on individual
which we have been planning, stress-testing and running the
health and health care systems worldwide are alarming, and
business in the context of this virus in order to ensure the
the impact on economic growth following mass business
resiliency of the firm.
shutdowns in cities across the globe has yet to be fully
ascertained. These are truly trying and unprecedented times,
Behind every crisis looms opportunity
when a virus unleashed in one part of the world has had
One thing we encourage both our clients and our shareholders
devastating consequences on a global scale.
to never lose sight of, is that every crisis presents an
opportunity. Even if this crisis goes on for longer than
performance, and we believe that we are well-positioned to
we expect or hope, it will still be a great opportunity for
weather the storm in these truly unprecedented times. Since
any business that has the backbone, the strength and the
founding Fiera Capital 17 years ago, we have been allocating
capability of seeing itself through the crisis.
our capital to grow and diversify our investment platform.
There is currently a tremendous amount of monetary
Today, we have a wide range of successful and competitive
and fiscal stimulus in the pipeline. We expect that by the
active investment strategies, including a well-diversified
time investor confidence comes back, the result will be
private alternative investment offering, providing us with the
an extended period of economic expansion and growth,
wherewithal to resourcefully and effectively navigate these
because a significant GDP gap will have been created in
unchartered waters.
the meantime.
On a final note, I would like to thank our clients and
If a business can overcome this crisis, a crisis that could
our shareholders for the great deal of trust that they put
potentially last for another 18 months, and we believe
in us, particularly during these singular times. I also want
Fiera Capital can and will, the opportunities that would follow
to extend a sincere thank you to each and every one of our
could be very significant.
employees for their remarkable dedication, as well as their
As of April 20, 2020, over 70% of our strategies
outstanding professionalism and collaboration during this
under management were outperforming their respective
period. Our investment teams have been managing their
benchmarks on a year-to-date basis, which is testament
portfolios with a careful and seasoned approach, making risk
to the fact that our relative competitive position in the
management a key daily priority. Our client-facing teams
marketplace is very strong. If we can continue to outperform,
have been proactive and fully committed to continue offering
we expect that our competitive position in the marketplace
our clients the exemplary service they have come to expect
will be significantly improved once markets turn around.
from us. Our IT and Operations teams have worked tirelessly
Every crisis is an opportunity, and we believe that this one
to implement our business continuity plans and equip our
will, down the road, prove to be just that.
employees to work from home. The growth and success of
our firm has always rested on the talent of our teams around
Daily monitoring and risk management
the world. They are our most valuable assets, allowing us to
Certainly, as we look for opportunities, we monitor our
face the future with confidence.
investment strategies and funds daily. Our team assembles
– remotely – on a daily basis, reviewing and staying current
with the latest developments, and taking appropriate action
where necessary.
Notwithstanding the current state of markets, we are very
Jean-Guy Desjardins
pleased with our 2019 and year-to-date 2020 investment
Chairman of the Board and Chief Executive Officer
Table of Contents
006
Message from the
Chairman and
Chief Executive Officer
018
Message from the
Global President and
Chief Operating Officer
034
Corporate Social
Responsibility
010
2019 Financial
Highlights
021
An Award-Winning
Team
037
Management's
Discussion and Analysis
012
Message from the
Vice Chairman
022
A Client-Driven
Approach
038
Annual Report of the
Audit and Risk Management
Committee
026
Excellence in Execution
with Ambition
041
Consolidated
Financial Statements
015
Board of
Directors
015
Global
Leadership Team
028
A Growing and
Diversified Private
Alternatives Platform
042
Corporate
Information
043
Contact Us
016
Generating Alpha
for Our Clients
032
Responsible
Investing
Value-Driven,
Client-Focused
At the core of Fiera Capital’s mission and vision is our commitment to
our clients. And the recognition that by creating sustainable wealth
for them, we create value for our shareholders.
04
Efforts deployed in 2019 were in direct pursuit of this goal: we established a strategic
partnership with a global asset manager and closed four acquisitions. In so doing, we
broadened our investment offering and expanded our global footprint, reinforcing our
ability to better meet the needs of our clients the world over. By providing them with an
even wider range of successful and competitive investment strategies, we simultaneously
built a more resilient business for our shareholders by diversifying our revenue streams and
creating a more scalable investment platform.
We continue to be a trusted partner to our clients across all our investment solutions. In
our traditional equity and fixed income strategies, we are pleased to report that 82% of our
equity strategies and 93% of our fixed income strategies beat their respective benchmarks
over a 5-year period. In particular, our top rated and award-winning Global Equity team
celebrated its 10-year track record, an achievement that we are proud of and that speaks to
the excellence of our investment teams.
The ongoing development of our private alternative investments platform is also an
important component of our growth story and a testament to how far we can go with the
right combination of ambition and innovation. Our investments in private markets strategies
was born out of the understanding and foresight that traditional asset classes alone would
no longer suffice for proper portfolio diversification. Today, we can offer our clients a global
private alternatives platform including agriculture, real estate, infrastructure, private equity
and private debt strategies. Strategies that offer attractive returns with a lower degree of
volatility and a low correlation to markets, compared to traditional asset classes. As a result
of growing demand for these asset classes as well as the proper expertise to manage them,
AUM in private markets strategies rose to $12.0 billion ($13.6 billion including committed
capital) as at the end of 2019, from just under $3 billion in 2014.
Managing money and managing risk are inextricably linked. They have a direct impact on
our clients, our shareholders and our reputation. Accordingly, employing teams that operate
with the highest degree of integrity is critical and non-negotiable. Our business is a people
business, and much like we manage funds for the long term, we manage our people with a
long-term view. We place a strong focus on talent, development and collaboration among
teams as we build out the next generation of leaders to ensure we continue to deliver
consistently for our clients and our shareholders.
FIERA CAPITAL CORPORATION 2019 ANNUAL REPORT | 05
Message from the Chairman
and Chief Executive Officer
Value-Driven,
Client-Focused
Growth
Heightened volatility marked early 2020 with the World
Health Organization declaring the coronavirus outbreak
a pandemic. Uncertainty has persisted in the markets for
weeks, undoing market gains across industries, halting stock
exchanges, and prompting central banks to take action
by lowering key interest rates. The downturn in the global
economy sparked by COVID-19 has affected all investors, the
potential implications on individual health and health care
systems worldwide are alarming, and the impact on economic
growth following mass business shutdowns in cities across the
globe has yet to be fully ascertained. These are truly trying and
unprecedented times, when a virus unleashed in one part of
the world has had devastating consequences on a global scale.
Indeed, we live in a time where we are all interconnected, and
markets are more correlated than ever before. We continue to
monitor the situation closely, taking appropriate action where
necessary for the benefit of our clients and our shareholders.
I hope that by the time we discuss our first quarter financial
results and host our virtual AGM that we might have more
visibility on the economic ramifications of this crisis.
In 2019, the global economy continued to grow, capping
off a decade of expansion since the 2008-2009 financial
crisis. Overall, global equity markets were up 20%1 in 2019,
despite increased market volatility from trade disagreements,
particularly between the United States and China, and several
extraordinary weather-related events (heat waves in Europe;
Fiera Capital is striving to be
among the leading investors making
the world a better place.
0606
crop failures and forest fires in California, Australia and
Western Canada; hurricanes and floods in Asia and Canada).
A solid investment platform
Fiera Capital and its teams remain at the forefront of
investment management science. Since the firm was
founded in 2003, our efforts have been focused on
building a diversified investment platform capable of
meeting our clients’ needs across economic cycles. Thanks
to that diversity, we have also been able to expand our
sources of income across asset classes and top performing
investment strategies.
Our evolution follows a rigorous approach of analyzing
and constantly refining those investment strategies. In
2019, this approach was also marked by major acquisitions
and partnerships:
We increased our liability-driven investments (LDI)
with the acquisition of Foresters Asset Management Inc.
(“Foresters”), an Ontario-based investment management
firm, adding $11.2 billion in assets under management and
enhancing our institutional fixed income platform.
We added new strategies to our private alternative
investments platform by completing the acquisition of
Integrated Asset Management Corp. (“IAM”), adding more
than $3 billion in assets under management and committed
capital to our strategic private debt and real estate offerings.
We strengthened our position in real estate in the United
Kingdom by acquiring 80% of the shares of Palmer Capital,
a leading London-based real estate investment manager,
increasing our assets under management by approximately
$740 million.
We entered into a long-term strategic partnership with
Natixis Investment Managers (“Natixis”), a global asset
manager with over $1 trillion in assets under management,
making Fiera Capital the preferred Canadian distribution
platform for Natixis, which acquired an 11% interest in
Fiera Capital.
Active public market and private alternative
investment strategies that outperform
We take great pride in being active investment managers
and believe that a hands-on approach to investing is the
only way to generate alpha. Today, we offer over one
hundred public market investment strategies with a large
number of them outranking their passive benchmarks.
Our private market strategies are also performing very
well. Notably, over the five-year period ending December
31, 2019, the Fiera Real Estate Small Cap Industrial Fund LP
and Fiera Real Estate CORE Fund L.P., two of our real estate
funds, as well as the Fiera FP Business Financing Fund, L.P.,
a private debt fund, generated annualized returns of 12.2%,
8.0% and 9.4%, respectively. Among our more recently
introduced alternative strategies, the Global Agriculture
Open-End Fund L.P. and Glacier Global Private Equity Fund
I L.P. generated annualized returns of 8.2% and 18.8%
respectively for fiscal 2019.
In recent years, we have seen growing demand from
our private wealth clients to include private alternative
investment strategies in their portfolios. We are catering
to that ask by giving our clients access to investments in
infrastructure, real estate, agriculture, private debt, private
equity and Asian credit that only large pension plans could
previously subscribe to. Fiera Capital is making the days
when a private wealth client’s portfolio consisted solely of
stocks and bonds a thing of the past.
Institutional clients and, more recently, our private
wealth clients, can now also access tailored capital allocation
solutions, thanks to our Multi-Asset Class Solutions (MACS),
a risk factor allocation and diversification model. This
quantitative model, which was developed internally and
highlights the expertise of our portfolio managers, is based
on the premise that, in addition to earning alpha generated
by high-performance active strategies, our clients can also
benefit from the diversification resulting from strategic
capital allocation that is adapted to their specific needs.
Focus on our distribution networks, client relationships
and technology
Fiera Capital is looking to the future with a great deal of
confidence. In order to better leverage our proven suite of
investment strategies, our focus in the coming years will turn
to enhancing our distribution and client-servicing capabilities.
With over 800 employees, including nearly 220 investment
professionals, and a global presence, Fiera Capital intends
FIERA CAPITAL CORPORATION 2019 ANNUAL REPORT | 07
to continue to expand its client base in the United States,
Europe and Asia, leveraging our approach of offering mid-sized
institutional investors and private wealth clients investment
solutions typically reserved for larger pension funds.
We will also invest in strengthening our technology
platform. We will focus on projects designed to increase our
analytical capabilities, improve the efficiency of our day-to-
day operations and strengthen our cybersecurity measures.
Issues related to the security of personal information and
digital data have emerged worldwide in recent years as one
of the greatest threats to corporate prosperity and investor
security. Fiera Capital is making cybersecurity a top priority.
Sound capital allocation
We are extremely proud of our financial and operational
performance in fiscal 2019, as well as the outcome of our
M&A activity during the year. After allocating capital to
provide our clients with a wider array of successful strategies
and a more robust technology platform, we continued to
generate higher returns for our shareholders. 2019 was a
strong year for Fiera Capital, with solid growth of 24% in
assets under management, which reached $169.7 billion as
at December 31, 2019. Adjusted earnings before interest,
taxes, depreciation and amortization2,3 (AEBITDA) increased
to $193.0 million in 2019, versus $137.5 million in 2018, and
adjusted net earnings per share2,3,4 rose to $1.95, an increase
of $0.50 compared to 2018.
In addition, we adopted a diligent, three-pronged
approach to better manage our capital.
1 | In July 2019, Fiera Capital raised $110 million in
senior subordinated unsecured debentures, including an
over-allotment option exercised in full, consequently
diversifying our sources of capital and extending our
capital structure over a longer-term horizon, to 2024.
These hybrid securities are in addition to the $86.25
million convertible unsecured subordinated debentures we
issued in 2017 and which are due in 2023. Furthermore, in
November 2019, we extended the term of our revolving
credit facility to 2023.
2 | Since 2012, Fiera Capital had increased its dividend
annually, bringing it to 21 cents per share per quarter
in early 2019, representing a compound annual growth
rate (CAGR) of 15% for Fiera Capital shareholders over
the 2010-2019 period. After 14 dividend increases since
our initial public offering in 2010, we stabilized it at its
current and substantial level of $0.84 per share per year,
allowing us to redirect the savings realized from holding
the dividend constant towards debt reduction.
3 | Concurrent with the above decision, we introduced
a dividend reinvestment plan in 2019 that offers our
shareholders the choice of receiving dividend proceeds
in cash or in additional Class A subordinate voting shares
(“Class A shares”), accordingly strengthening our ability
to conserve cash while offering return of capital options
tailored to our shareholders’ needs and objectives.
With the new hybrid debentures, the stabilization of the
dividend and the newly introduced dividend reinvestment
plan, Fiera Capital optimized its capital structure and
increased its financial flexibility.
A young company aiming for the top 100
After only 17 years in existence, Fiera Capital has achieved
international scale and is building its global brand
recognition. Today, as one of the largest independent
management companies in Canada, Fiera Capital has
distinguished itself through the excellence of its teams,
the soundness of its strategies and the professionalism of
its management. In a world of numbers, performance and
fierce competition, Fiera Capital remains guided by strong
values: integrity, ambition, collaboration, innovation and
excellence. This philosophical basis is the driving force for
the development of successful strategies that integrate
ESG factors within their investment processes. We work to
anticipate the needs of our clients in order to develop new
investment strategies that help them further optimize and
improve the returns on their investment portfolios. This is
the Fiera Capital way, allowing us to steadily progress toward
becoming one of the top 100 asset managers in the world.
ESG factors spell success
The values that drive us also make Fiera Capital an architect
of a fairer and more sustainable world. Capital is power and
08
must be oriented towards progress. Since 2017, environmental,
social and governance (ESG) factors have proudly been a
part of the analytical framework of all our investment teams.
This commitment is social, but also strategic. A revolution
in values has begun. In this new decade, ESG factors will
become essential criteria for investment discrimination, and
companies that perform poorly in these areas will face a rise
in their cost of capital. Markets increasingly tend to reward ESG
champions, and this trend will only intensify in the coming years.
Responsible investment practises are generating growing
interest and becoming increasingly important in today’s
environment. In 2019, we developed and implemented new
tools to allow us to more effectively integrate ESG factors
into our investment processes and also marked significant
accomplishments:
We revised our proxy voting policy to ensure that all of
our delegates on the boards of portfolio companies support
Fiera Capital’s commitment to ESG factors.
We launched a Global Impact Committee and, in early
2020, a new Global Impact Fund, two initiatives that will rely
on strengthened ESG research and analysis capabilities.
Fiera Infrastructure became a member of GRESB, the
ESG Benchmark for real assets. GRESB evaluates, rates
and compares ESG performance data in order to provide
standardized and validated data to capital markets.
Our MSCI ESG rating was upgraded to 'A' from 'BBB', with
MSCI noting that Fiera Capital continues to lead its industry
peers in incorporating ESG principles into its business
activities with its responsible investment policies.
Acknowledgements
The great Fiera Capital story continues to leap forward as a
result of the combined efforts of a great team rich in talent and
diversity. I would like to thank all our employees in Canada,
the United States, Europe and the Asia-Pacific region, and I
thank our clients and shareholders for their trust and loyalty. I
would also like to thank the Board of Directors for its rigorous
oversight and counsel. Special thanks to Mr. Sylvain Brosseau
and Mr. Martin Gagnon, who have left our Board in 2019
and welcome our two newest Board members, Mr. Norman
Steinberg, Chair Emeritus Norton Rose Fullbright Canada,
and Mr. Jean Raby, CEO Natixis Investment Managers.
Jean-Guy Desjardins
Chairman and Chief Executive Officer
1 The MSCI World and MSCI ACWI indices generated a Canadian dollar return of 21.22% and 20.20% in 2019, respectively. 2 EBITDA, Adjusted EBITDA, adjusted net
earnings and adjusted net earnings per share (adjusted EPS) are not standardized measures prescribed by IFRS. These non-IFRS measures do not have a standardized
meaning and may not be comparable to similar measures used by other companies. 3 The Company adopted IFRS 16 Leases on January 1, 2019, which resulted in a shift
in lease expense classification from operating expenses to financing costs and amortization. The comparative information presented for 2018 has not been restated and
is presented, as previously reported, under IAS 17 Leases and related interpretations. 4 Attributable to the Company’s shareholders.
2020 EXECUTIVE APPOINTMENTS
On March 19, 2020, we announced two important executive appointments. Jean-Philippe Lemay, who was previously President
and Chief Operating Officer of Fiera Capital’s Canadian division, was appointed Global President and Chief Operating Officer.
Jean-Philippe succeeds Vincent Duhamel, who has taken the role of Vice Chairman of the Company’s Board of Directors, where he
will continue exercising important influence on the strategic direction of the firm. Mr. Lemay has 20 years of industry experience
and has grown and evolved within Fiera Capital since 2012. He has demonstrated superior leadership capabilities and knowledge
of the investment management industry, most notably by having successfully led the Canadian division since 2017. He is well-
respected both within the Firm and externally and is committed to continue growing our organization responsibly and profitably.
I want to thank Mr. Duhamel for his contribution to the organization since taking on the role of Global President and Chief
Operating Officer in 2017, including for his instrumental role in implementing Fiera Capital’s 2022 Strategic Plan. Moving forward, he
will co-lead the development of our strategic alliance with Natixis and oversee Bel Air Investment Advisors, as well as ensure a proper
transition with Mr. Lemay.
FIERA CAPITAL CORPORATION 2019 ANNUAL REPORT | 09
2019
Financial Highlights
2019 was characterized by significant growth. The firm continued to
innovate, diversify and strengthen its business platform.
Assets Under
Management
as at December 31
At a Glance
2019
2018
Revenues
$657.2M
$540.3M
EBITDA1,2
$114.3M
$69.2M
Adjusted
EBITDA1,2
Basic Net
Earnings (Loss)2,3
Basic Adjusted
Net Earnings1,2,3
$193.0M
$137.5M
$(13.4)M
$(5.0)M
$132.6M
$101.2M
1 Earnings before interest, taxes, depreciation and amortization (EBITDA), adjusted EBITDA,
adjusted EBITDA margin and adjusted EBITDA per share, adjusted net earnings and adjusted
net earnings per share are not standardized measures prescribed by International Financial
Reporting Standards (“IFRS”). These non-IFRS measures do not have any standardized meaning
and may not be comparable to similar measures presented by other companies. Certain
comparative figures have been restated to conform with the current presentation. Please
refer to the “Non-IFRS Measures” Section of the Company’s MD&A for the definitions and
the reconciliation to IFRS measures, available at www.fiera.com and www.sedar.com.
2 The Company adopted IFRS 16 Leases on January 1, 2019, which resulted in a shift in lease
expense classification from operating expenses to financing costs and amortization. The
comparative information presented for 2018 has not been restated and is presented, as
previously reported, under IAS 17 Leases and related interpretations.
3 Attributable to the Company’s shareholders.
4 As a function of base management fees
2019
2018
2017
2016
2015
2014
2013
10
Key Statistics
40
22
Increase in
Adjusted EBITDA1,2
Increase in
Total Revenues
Year-Over-Year
AUM Increase
37.0
12.5 B
$
2019 Average
Basis Points Earned
on AUM4
New Mandates
Won
Basic EPS2,3 and Basic Adjusted EPS1,2,3
$1.17
$1.21
$1.07
$1.34
$0.97
$1.01
$0.74
$0.26
$0.40
$0.40
$0.27
$0.13
2013
2014
2015
2016
2017
2018
2019
-$0.05
-$0.14
Net Earnings (Loss) Per Share
Adjusted Net Earnings Per Share
FIERA CAPITAL CORPORATION 2019 ANNUAL REPORT | 11
Message from the
Vice Chairman
A Growing
Reputation
2019 was a year of great achievements. Fiera Capital
emerged stronger, more diversified and solidly
positioned for the coming years. The transactions
closed in the past year each further contributed to
strengthening the firm; our operating results are a
testament to their value-added. Revenue growth
was particularly robust in 2019 with a 22% increase
from $540.3 million in 2018 to $657.2 million in
2019. Similarly, average basis points earned on assets
under management, calculated as a function of base
management fees, continued to trend upwards,
reaching 37.0 basis points in 2019, up from 36.0 basis
points in 2018 and 32.6 basis points in 2017.
With regards to the more current macroeconomic
environment of 2020 and the market turbulence
caused by the spread of COVID-19-fuelled fears, Fiera
Capital remains committed to being vigilant and
On March 19, 2020, Vincent Duhamel was appointed
Vice Chairman of the Board of Directors of Fiera Capital.
Fiera Capital emerged
stronger, more diversified
and solidly positioned for
the coming years.
12
exercising utmost care in our decision-making, for the
benefit of our clients and our shareholders. To safeguard
the resilience of our business model, risk monitoring –
at the issuer and investor level – and stress-testing are
key variables to this equation. The performance of our
investment strategies during these trying times will be
a key determining factor of our success; as of end of day
March 16, 2020, approximately 70% of our strategies
were outperforming their respective benchmarks. Finally,
liquidity and cost discipline will also be chief priorities
as we focus on organic growth to contribute to our
expansion in the coming years.
To that effect, the M&A activity we undertook in 2019
has enhanced and strengthened our investment strategy
offering by adding alternative and fixed income assets
to our platform and better positioning us to weather the
current economic environment.
Being where it counts
The acquisition of Palmer Capital allowed us to expand
our presence in London by adding a leading real estate
investment manager focused in the United Kingdom to
our platform of private alternative investment strategies.
Palmer Capital is a recognized London-based investor
with a range of clients in England and Europe. On the
back of this transaction, we brought our real estate and
emerging market teams together under one roof and
integrated talented managers who share our vision for
development. Regardless of the outcome of Brexit, we
are convinced that London will remain a leading financial
centre where a global investor such as Fiera Capital
should have a strong foothold.
In March 2019, we announced the acquisition of
Canadian firm IAM, which was completed in July and
enhanced our existing range of private alternative
investment strategies, specifically in corporate and
infrastructure private debt as well as real estate. With
respect to corporate private debt, IAM added senior long-
term loans to our existing loans of 24 months and under,
thereby transforming Fiera Private Debt into one of the
largest non-bank private lending platforms in the country.
In real estate, IAM stands to accelerate our growth as a
result of complementary specialized investments focused
on industrial properties. Furthermore, IAM’s values closely
align with those of Fiera Capital. This is notably evidenced
by IAM’s adherence to the United Nations Principles for
Responsible Investment, to which Fiera Capital is also
a signatory.
This acquisition as well as that of Foresters, closed in
August 2019, contributed to significantly strengthening
our Canadian presence in both private alternative and
fixed income investment strategies.
Enhancing our reputation
In the spring of 2019, Natixis invested over $128 million
in Fiera Capital’s shareholding as part of a strategic
partnership formed between the two companies. Natixis
is a global asset manager present in 38 countries, with
$1.2 trillion in assets under management. With this new
partnership, we will have exclusivity to offer our Canadian
clients access to select Natixis global strategies, and,
in return, Natixis will be able to offer its international
clients a selection of complementary Fiera Capital
investment strategies.
Intensive international canvassing
With a wide range of successful and competitive
investment strategies and a global reach, we intensified
our efforts in 2019 and travelled to meet existing and
potential clients in Japan, Denmark, Australia, Sweden and
Italy. We organized conferences on our private alternative
investment strategies in London, Seoul, Hong Kong, New
York and here at home, in Montreal and Toronto. We were
more active than ever internationally, without overlooking
our main market, Canada. We are privileged to have more
than 600 Canadian partners as clients, and we are proud
to bring Canada’s reputation for investment innovation
and excellence to the rest of the world.
The four P’s
Our 2019 achievements are the upshot of the
implementation of our 2022 Strategic Plan. The plan that
FIERA CAPITAL CORPORATION 2019 ANNUAL REPORT | 13
Fiera Capital is focused
on creating long-term
value for its clients and
shareholders.
cemented our goal of positioning Fiera Capital among
the top 100 investment managers in the world. This plan
revolves around four P’s: People, Processes, Performance
and Partners. For us, this is the continuum of success:
bringing together the best people and giving them the
best tools in order to generate superior performance
that attracts honoured partners. In 2020, focus will be
on processes and people. We will continue to develop
our technological capabilities, in order to integrate the
latest advances into our operations, particularly regarding
cybersecurity and decision-support tools. Finally, we will
make special efforts to develop the talent in our various
distribution networks, will focus on succession planning
throughout the organization, and will promote the
mobilization of our employees.
Fiera Capital’s DNA and continuity
Fiera Capital is focused on creating long-term value for its
clients and shareholders and applies this principle to its
own continuity. Talent development is an organizational
priority that was expressed in several ways in 2019. We
built on steps taken in 2018 with the implementation
of our diversity and inclusion policy; we promoted the
advancement of women in our talent pipeline with the
enrolment of a first cohort in The A Effect’s Défi 100
jours; and we developed a competency model designed
to codify Fiera Capital’s DNA and perpetuate the culture
that distinguishes us at the junction of human values,
entrepreneurship and professional rigour.
Acknowledgements
I would like to thank our dedicated teams around the
world for making Fiera Capital’s enviable story possible.
Our success is a combination of effort and talent.
However, much of this work is done behind the scenes
and must be acknowledged. I want to extend a special
thank you to our employees in IT and Operations,
our employees in Legal and Compliance, Finance and
Accounting, Human Resources, Communications and
many more.
Finally, I would like to wish Jean-Philippe Lemay, who was
recently appointed Global President and Chief Operating
Officer, the very best in his new role. As Fiera Capital
enters into a new phase of its strategic development plan,
I am pleased to continue contributing to the growth of
the organization and supporting Jean-Guy Desjardins in a
different capacity as Vice Chairman of the Board.
Vincent Duhamel
Vice Chairman of the Board
14
Board of Directors
Jean-Guy Desjardins
Director since 2010
Chairman of the Board and
Chief Executive Officer,
Fiera Capital Corporation
Vincent Duhamel1
Director since 2020
Vice Chairman of the Board,
Fiera Capital Corporation
Réal Bellemare3
Director since 2016
Senior Executive
Vice President and Chief
Operating Officer,
Desjardins Group
Gary Collins2,5
Director since 2018
Senior Advisor, Lazard Ltd.
Geoff Beattie2,3,4
Director since 2018
Chairman and Chief Executive
Officer, Generation Capital
and Chairman, Relay Ventures
Nitin N. Kumbhani
Director since 2017
Vice Chairman and Chief of
Growth Equity Strategies,
Fiera Capital Inc.
Raymond Laurin5,6
Director since 2013
Corporate Director
Jean C. Monty3,7
Director since 2010
Director, DJM Capital,
and Corporate Director
Lise Pistono5
Director since 2013
Vice President and
Chief Financial Officer,
DJM Capital, and
Corporate Director
Jean Raby
Director since 2019
Chief Executive Officer,
Natixis Investment Managers
David R. Shaw2, 8
Lead Director
Director since 2006
Non-executive Chairman,
LHH Knightsbridge
Norman Steinberg4
Director since 2019
Vice Chair,
BFL Canada
1 Vincent Duhamel was appointed as director of Fiera Capital and Vice Chairman of the Board effective on March 19, 2020. He fills the vacancy following the resignation
of Todd Morgan on November 7, 2019. Mr. Morgan remains Chairman of Bel Air Investment Advisors. 2 Member of the Governance Committee. 3 Member of the
Human Resources Committee. 4 If the proposed Board of Director nominees are elected, the three (3) members of the Governance Committee will be David R. Shaw
(Chair), Gary Collins and Norman Steinberg. 5 Member of the Audit and Risk Management Committee. 6 Chair of the Audit and Risk Management Committee.
7 Chair of the Human Resources Committee. 8 Chair of the Governance Committee.
Monique F. Leroux
Strategic Advisor
Global Leadership Team
Jean-Guy Desjardins
Chairman of the Board and
Chief Executive Officer
François Bourdon
Global Chief Investment
Officer
Vincent Duhamel*
Vice Chairman of the Board
Jean-Philippe Lemay*
Global President and
Chief Operating Officer
John Valentini
President and Chief
Executive Officer, Fiera Private
Alternative Investments
Lucas Pontillo
Executive Vice President and
Global Chief Financial Officer
Benjamin S. Thompson
President and Chief
Executive Officer,
U.S. Division
David Sadkin
President, Bel Air
Investment Advisors LLC
Richard Nino
Executive Vice President,
Fiera-Natixis Strategic
Partnership
Gabriel Castiglio
Executive Vice President,
Chief Legal Officer and
Corporate Secretary
Daniel Richard
Senior Vice President, Chief
Human Resources Officer
(Global Human Resources and
Corporate Communications)
Michael Quigley
Executive Vice President,
Global Head of Distribution
Peter Stock
Executive Vice President,
Strategic Development
* On March 19, 2020, Vincent Duhamel was appointed Vice Chairman of the Board of Directors of Fiera Capital. Jean-Philippe Lemay, who was previously President and
Chief Operating Officer of Fiera Capital’s Canadian division, was appointed Global President and Chief Operating Officer.
FIERA CAPITAL CORPORATION 2019 ANNUAL REPORT | 15
Generating Alpha
for Our Clients
We pride ourselves on our history of successfully delivering alpha for our
clients. It’s what separates us from passive investors, but from active investors
too. We have a solid track record of performance across asset classes.
169.7B
Firm
AUM
77.3B
Fixed income
AUM
74.8B
Equity
AUM
17.6B
Alternatives
& other AUM
93%
Fixed income
Alternatives
We measure the performance of our private and liquid
alternative strategies on an absolute return basis.
Over the 5-year period from
January 1, 2015 to December 31, 2019,
93% of our fixed income strategies
beat their respective benchmarks.1
Creating Value
For infrastructure, real estate, private debt, private equity and
agriculture, we typically invest in mid-market transactions. We
believe that this segment tends to offer greater opportunities
for us to generate value for our clients.
82%
Equity
Over the 5-year period from
January 1, 2015 to December 31, 2019,
82% of our equity strategies beat their
respective benchmarks.1
1 Based on asset-weighted returns
16
Proficiency and Credibility
Equally as important in value creation is the expertise of a
deep talent pool throughout each step leading up to and
following the investment. To prove successful in producing
sound returns in the private markets assets space, proficiency
and credibility in origination, underwriting and monitoring are
extremely important.
At Fiera Capital, we have the specific know-how for and in
each of our alternatives businesses, with all teams placing a
great deal of emphasis on monitoring. We make sure that each
investment is tracked and that it is performing according to
expectations. And if it isn’t, we are prepared to step in quickly
and manage a turnaround.
This framework and philosophy have proved successful. We
are extremely pleased with the 2019 performance of our
alternative investment funds.
Fielding new teams and forging
new relationships in investment
markets worldwide.
World-Class Teams
Fiera Capital continues to
extend its reach.
Headquartered in Montreal, Fiera Capital’s
network of offices spans North America and
encompasses a steadily expanding presence
in key financial centres in Europe and Asia.
New York serves as home base for the U.S.
division, Los Angeles is home to Bel Air
Investment Advisors and London is the nerve
centre of the European division.
Fiera Capital has offices in
Montreal
Toronto
Calgary
New York
Boston
Los Angeles
Dayton
London
Frankfurt
Hong Kong
Singapore
FIERA CAPITAL CORPORATION 2019 ANNUAL REPORT | 17
Message from the Global President
and Chief Operating Officer
At the
intersection
of excellence,
integrity and
collaboration
It is an honor and a privilege to take on the role of Global
President and Chief Operating Officer alongside a
talented team of professionals committed to investment
excellence and to providing trusted investment
advice to our clients. I am especially proud to succeed
Vincent Duhamel, who I would like to warmly thank
for his contribution in this role since 2017.
Rolling out a successful model
Over the last 17 years, our team at Fiera Capital has
built an organization with a successful track record
and a proven model of providing creative and
effective investment solutions through a robust
investment platform.
We believe that a platform of diversified sources of
returns and active management approaches, as well
as the solid understanding of each client’s particular
investment objectives, are the foundation on which the
most robust investment portfolios must be built. It is
Building the foundation
for the most robust
investment portfolios.
18
this constant search for ways to contribute to our clients’
success that has driven and continues to drive our firm’s
business philosophy.
Moreover, our boutique approach, crafted thoughtfully
and intentionally, was established with the specific objective
of optimizing our investment management talent. By
creating the most conducive environment for our portfolio
managers to succeed, allowing them room to focus entirely
on their specific strategies and expressing their investment
skills and acumen, we are ensuring that our clients and their
assets are cared for in the best possible way.
We accomplished this by continuously looking at our
practices and searching for more effective and innovative
ways of doing things. As a result of this approach, we have
become a leading asset manager in Canada. We are now
working on rolling out our tried and tested Canadian model
to our other geographies, with the ambition of making our
investment solutions accessible to clients all over the world.
Dedicated to excellence
Our wide range of successful and competitive investment
strategies across public and private markets is
exceptionally well suited to best serve our clients around
the world. By having significantly diversified our offering
over the years, Fiera Capital today prides itself in offering
active investment strategies that span the spectrum of
asset classes. What’s more, we can now reach clients in
Europe, Asia, the United States as well as Canada with
performing strategies tailored to their needs.
Equally as impressive as the depth and breadth of our
investment platform is our specialized investment teams’
unwavering commitment to investment excellence. I would
like to congratulate all our teams who work hard every
day to create value for our clients. Notably, I would like
to underscore the exceptional contribution of our Global
Equity and Canadian Equity teams. Each of these teams
delivered 1st quartile performance on a 1, 3, 5 and 7 year
basis. Most of our teams have also fared very well in terms
of relative performance during the first quarter of 2020.
In addition, many of them were the winners of awards in
20191. Our private market strategies, which are measured
on an absolute return basis, have also generated strong
returns. In addition, these investments offer significantly less
volatility and less correlation to traditional market returns
in our clients’ portfolios. With their thorough experience,
trusted relationships and disciplined monitoring, Fiera
Private Alternative Investments has become a leading
supplier of private alternative strategies in the market.
I also want to highlight the outstanding collaboration
between our goal-oriented teams who constantly come
together to brainstorm and work out innovative solutions
for our clients’ and firm’s objectives. These Fiera Think
Tanks are the embodiment of organizational nimbleness
– forming rapidly and disassembling once a solution
has been conceived or implemented. These unique
problem-solving modules are the brainchild behind such
accomplishments as our Multi-Asset Class Solutions
(MACS) risk factor allocation and diversification model.
A client-focused mission guided by collaboration
and innovation
Whether we grow our investment teams organically or
through acquisitions, better servicing our existing and future
clients is always the end goal. That was no different with
the acquisition of Foresters, an investment management
company and subsidiary of Foresters Financial, which
granted clients of both Foresters and Foresters Financial
access to a broader set investment tools to manage their
specific objectives. What's more, this acquisition added to
our fixed-income offering and strengthened our position
in liability-driven investment (LDI) strategies to more than
$25 billion, thereby expanding our insurance LDI offering
and significantly scaling up the business.
From an operational perspective, the integration of
Foresters was remarkable. Exceptionally, most of the
work was completed ahead of the formal closing of the
transaction − a first for the Company − allowing the
combined organization to ramp up very quickly. As a
result, by the time the acquisition was finalized on August
16, 2019, various aspects of the integration such as
technology, operations and human resources had all been
addressed smoothly and seamlessly. More importantly,
FIERA CAPITAL CORPORATION 2019 ANNUAL REPORT | 19
Our talented and dedicated
teams are the reason for
our strong global reputation.
from the client perspective, the upstream activities
undertaken allowed for an effortless and uninterrupted
transition and consequently, enhanced client-servicing.
This is a Fiera Capital success story and is a testament
to the efficiency and flexibility of our global operating
platform and technology infrastructure.
Looking ahead and acknowledgments
I would like to sincerely thank all our employees for their
outstanding professionalism and collaboration during these
socially and economically challenging times. Over the
last several weeks, I have witnessed employees across all
divisions and departments come together and collaborate in
amazing ways. They are truly Fiera Capital’s greatest assets.
Although the situation is changing daily and we cannot
predict how it will evolve, there is one thing we can all be sure
of – we can count on what we have built over the years: a
world-class asset manager. Our highly talented, focused and
dedicated teams are the foundation and the reason behind
our strong global reputation and our robust and resilient
investment platform. And our passion and penchant for active
investing and the depth and breadth of our offering of private
alternative investments provide us with a unique advantage,
positioning us better than ever before to better serve our
clients across the globe, and across economic cycles.
For all of these reasons, I am excited to assume the role
of Global President and Chief Operating Officer, and even
more so in these peculiar times.
I am looking forward to working with our teams outside
of Canada, albeit virtually for the time being. There is
much that I want to accomplish with them. By collectively
collaborating, we will see how we can best leverage our
commonalities, while keeping our regional uniqueness.
In addition to our employees, I want to thank the Global
Management team that is navigating these uncertain times
with extreme diligence and caution. The rigorous scenario
analysis that we perform, coupled with a diversified
business model are essential elements to getting through
these harder economic times. Regardless of where we may
be in an economic cycle, our primary objective is and will
always remain supporting and advising our clients. In these
extraordinary times, this is more fundamental than ever,
and I am fully confident in our ability to guide them and to
seize on opportunities for them along the way.
I am also thankful to Jean-Guy Desjardins and the entire
board of directors for the faith and confidence that they
have entrusted in me. I have a tremendous team by my
side and across the world, and I am convinced that we will
continue shaping Fiera Capital into an even stronger, more
resilient, global asset manager.
Jean-Philippe Lemay
Global President and Chief Operating Officer
1 In 2019, Fiera Capital’s leadership and excellence were recognized yet again. Our Global Equity team won the Institutional Asset Management Award, one of
the most prestigious award programs in North America, in the category “Active US Equity Strategy of the Year.” In addition, four investment funds managed by
our Canadian equity and fixed income teams won Lipper Fund awards – these awards, granted annually, highlight funds and fund companies that have excelled in
delivering consistently strong risk-adjusted performance relative to their peers. Congratulations to our NBI Québec Growth, NBI Precious Metals, Horizons Active
CDN Bond ETF and Horizons Active Floating Rate Bond ETF teams who each won a Lipper Fund award in 2019.
20
An Award-Winning Team
The Global Equity team's disciplined approach to investing and solid track record
of performance has earned it worldwide notoriety and the trust of its clients.
In March 2019, the Global Equity team, founded internally
by portfolio manager Nadim Rizk, celebrated its 10-year
anniversary. This was a significant milestone for this high
performing team, who manages three strategies and grew
AUM organically from under $150 million dollars in 2009
to over $43 billion as at the end of 2019. Over the last five
years alone, the team has won over $3 billion dollars per
year in new mandates. During the first three months of
2020, despite the turbulence in global equity markets, the
team generated significant wins of over USD $1.1 billion, a
testament to their track record and reputation with investors.
The flagship Global Equity strategy, which today has
more assets internationally than in Canada, has generated
returns for investors of almost 17.0% per year since
inception1; a cumulative return of 398%. In comparison, the
MSCI World index generated an average return of 11.7% per
year during that period, a 211% cumulative return.
which it received for several consecutive years for its
management of the Company’s Global and U.S. Equity
Funds. Furthermore, in 2019, the Global Equity team won
the Institutional Asset Management Award, one of the
most prestigious award programs in North America, in the
category “Active US Equity Strategy of the Year.”
“The Global Equity team takes an extremely long-term
approach to investing. Most of the companies we owned
10 years ago are still the same ones we own today.
Before investing in any firm, we make sure its financials
are impeccable, that management abides by a strong
set of corporate values and principles and that a strong
governance structure is in place.” – Nadim Rizk
Global Equity Team 10-Year
Performance and AUM
“Although it can be easy for an asset manager to generate
investment returns in a bull market, or protect capital in a
bear market, doing both is extremely difficult. Our strategy
has managed to protect our clients’ capital every time
there has been a downturn in the markets, as well as reap
significant benefits from a booming economy.” – Nadim Rizk
The team has received multiple awards, including
Morningstar’s 5-star and Fundata’s FundGrade A+ ratings,
50
40
30
20
10
0
09
10 11
12
13
14 15
16
17
18
19
1 For the period from October 1, 2009 to December 31, 2019
AUM
Global Strategy
MSCI World Index
FIERA CAPITAL CORPORATION 2019 ANNUAL REPORT | 21
A Client-Driven
Approach
How our search for alpha and robust
investment solutions create successful
investment outcomes for our clients.
Search for Alpha
Our wide range of successful and competitive
active investment strategies are a source
of diversified returns and alpha, and are the
foundation on which the most robust investment
portfolios are built.
Benefits of the Boutique Approach
Our boutique approach sets the stage for our
portfolio managers to maximize their talent
and best leverage their strengths at generating
alpha for their clients.
Building and Buying
We deliver on client expectations by offering
a varied and tailored investment solutions
offering. We have achieved this by both acquiring
performing strategies and by developing them
in-house.
22
Contributing to our
clients’ success drives our
business philosophy.
The Benefits of the
Boutique Approach
From an investment execution standpoint, the company
was founded as – and purposefully remains – a multi-
boutique firm. In this environment, we believe the stage
is set for portfolio managers to leverage their expertise
in a given asset class or investment strategy and focus on
generating alpha for their clients.
The result is portfolios with the ability to deliver the most
consistent and compelling returns for investors over the
long-term. For this reason, we believe the boutique structure
is at the core of Fiera Capital’s value proposition to
its clients.
How does the pursuit of successful investment
outcomes manifest itself into our client-driven
approach?
We believe that investment teams are most effective
at generating excess returns in focused, independent
structures. Yet the client experience is strengthened when
those teams work under the umbrella of a well-resourced
organization. This is because small organizations often lack
the operational infrastructure (distribution, compliance,
operations) required to support the increasing regulatory
and operational needs within our industry. This is the
infrastructure backbone for any investment management
organization, and without it, portfolio managers are
inevitably forced to take on other duties which distract
them from their core competencies. Because every minute
that a portfolio manager spends handling back office, legal
or compliance issues, is a minute not spent generating
investment ideas for client portfolios. This is exactly why,
whether onboarding a team or a firm, we provide that
talent with a support environment that empowers them to
leverage their skillsets and employ their investment prowess
to the greatest extent possible.
The completion of the onboarding of a new investment
team is also the beginning of a well-thought out integration
process – continuously enhanced over the past 17 years – of
helping new partners leverage Fiera Capital’s capabilities.
It’s also at this point that our CIO office – which oversees
our investment platform – is leveraged to design the most
efficient platform off of which we can build portfolios on
behalf of clients, helping them integrate ESG or incorporate
Risk Factor Investing.
The end result is more innovative investment options
– managed by top performing investment teams – made
available to our customers through client service that is
second-to-none.
To Build or to Buy
But why do we sometimes choose to acquire
investment strategies onto our platforms instead of
building them internally?
The fact is that it may be faster, more likely to deliver on
client expectations, and ultimately more efficient and
FIERA CAPITAL CORPORATION 2019 ANNUAL REPORT | 23
beneficial for our clients, for us to acquire the right talent
and put it to use as quickly as possible. The added benefit for
our clients is that through an acquisition, they immediately
get access to a strategy run by a team that already has an
established performance track record and that has been
heavily scrutinized during our due diligence process.
This is especially important as we enhance our private
alternative strategy offering to institutions and high net
worth individuals. Though these types of strategies solidify
client portfolios through their diversifying effects, they
require significant amounts of due diligence and operational
expertise. Fiera Capital has developed the scale and in-
house, institutional-grade expertise to do so.
The acquisition of Clearwater Capital, our Asian credit
manager, is one example. We believe that this asset class
has been overlooked due to its regulatory complexities
and unfamiliarity to Western investors. Yet through this
acquisition, we are now able to provide clients access to
compelling, portfolio-enhancing investments such as private
lending in China, managed by an experienced and talented
local investment team.
Acquisitions, however, are not the only drivers of
our expansion.
We have created and continue to build teams internally and
grow them organically, such as global equity, private equity
and global agriculture strategies. In some cases, we have
also enhanced organically-built teams with additional bolt-
on capabilities.
Importantly, in all these cases, the investment experts
rely on our organization – that is, our corporate backbone –
to support them, giving them the tools and means to best
leverage their expertise for the benefit of our clients.
Skill Over Scale
At Fiera Capital, our vision is to provide the best investment
solutions and most robust platforms to our clients on a
global basis; this is achieved by maximizing our skill.
Keeping this in mind, with any acquisition we
make, our perspective is that we are not buying
the assets, but rather, we acquire the strategies,
the talent and the know-how.
24
With those elements, we believe that asset growth will
come as a result of the investment success that we generate
for our clients.
We are confident that this vision will contribute in a big
way to carrying us into the ranks of the top 100 investment
managers in the world.
While our mission is an ambitious one, we are
confident that we have the innovative solutions, the
forward-looking vision and the client-driven approach
needed to succeed.
Strategies we’ve built,
bought and both
Built
> Global Equity
> Liability-Driven Investments
> Infrastructure Equity and Debt
> Agriculture
> Private Equity
> Systematic Investment Strategies
> Liquid Alts
> Micro Cap Equity
> Ethical/ESG/Fossil Fuel-Free
Bought
Both
> Emerging Markets
> Asian Private Lending
> Frontier Markets
> Asian High Yield Debt
> US Small/Mid Cap
> US Municipal Bonds
> Fixed Income Universe
> Real Estate
> Private Lending
> Canadian Equity
From Values to Value
Innovative and
customized solutions
Supported by our well-rounded offering
of traditional and alternative investment
strategies, we build client partnerships
with customized investment solutions that
respond to evolving investment needs.
Ambition and determination
We foster an entrepreneurial spirit that
motivates us to work hard and seek the best
solutions for our clients while continuously
improving our business practices and
expanding our product offering.
Collaboration-driven solutions
Working as a unit with common purpose,
our team of dedicated and seasoned
professionals collaborates with its clients
to create investment solutions designed to
exceed their expectations, maintain trust and
help build long-term relationships.
Excellence in portfolio
management
Our highly experienced, award-winning
investment teams never compromise in
their aim to deliver superior risk-adjusted,
long-term returns.
Integrity, respect and
accountability
We work to achieve excellence throught
strong management practices, sound
business principles and a high level of ethical
conduct, with respect for each individual and
accountability to our clients.
FIERA CAPITAL CORPORATION 2019 ANNUAL REPORT | 25
Excellence in
Execution with Ambition
Integrity demonstrated through
innovation and global collaboration
I am proud of how our team ambitiously mobilized the
organization in 2019 in order to achieve another successful
year of investment excellence for our clients and growth
for our shareholders. A great example is the on-going
success and scale of our Global Equity team led by Nadim
Rizk, which continued to win the trust of several significant
institutional pension clients in the US and Europe over
the course of the year. This reflects not only the strong
disciplined investment approach of the team’s high
conviction strategies, but also the collaboration of our global
sales, marketing and compliance teams in coordinating
distribution and client service efforts across geographies.”
Jean-Guy Desjardins
Chairman of the Board and
Chief Executive Officer
As we initiated our 2022 Strategic Plan at the end
of 2017, we developed an ambitious vision for our
employees, clients and shareholders, to be ranked
among the world's top 100 managers. This vision created
more opportunities to attract best-in-class talent,
better alpha generation capabilities for our clients and
a more sustainable firm for our shareholders. 2019 was
characterized by the successful achievement of important
milestones in our alpha generation, profitability, but more
importantly, systems and process infrastructure that will
serve us well in our continued growth. I am consistently
reminded of the great talent of our people and their
engagement to Fiera Capital's evolution and growth.”
26
Vincent Duhamel
Vice Chairman
of the Board
The Foresters Asset Management acquisition in 2019
was a transaction that bolstered Fiera Capital’s already
formidable Liability Driven Investment capabilities to
become one of the largest LDI solution providers in the
country. In addition, the on-boarding of the Foresters
platform was the first time that we simultaneously
integrated a transaction during the closing period. This
was a testament to the execution capabilities of our Global
Operations and Technology teams, who are leading our
global operations and technology transformation with the
same level of efficiency and effectiveness.”
Jean-Philippe Lemay
Global President and
Chief Operating Officer
One of our key priorities in 2019 was to effectively
diversify the nature and tenure of our capital structure,
in order to build a more resilient balance sheet.
Through the collaborative efforts of our internal
Finance and Legal teams along with our Banking
partners, we successfully raised $110 million dollars
of hybrid debentures in an oversubscribed bought
deal. This innovative security has the added benefit of
providing us with flexibility in how we repay both the
interest and the principal, as we focus on continued
de-leveraging going forward.”
Lucas Pontillo
Executive Vice President and
Global Chief Financial Officer
At the end of 2019, Fiera Capital had $13.6 billion dollars in AUM
and committed capital in private alternative investment strategies.
Our capabilities now span the spectrum of real estate, infrastructure,
private debt, private equity and agriculture. These strategies are
key components in developing innovative and holistic investment
solutions for our institutional and private wealth clients, as they
introduce an asset class that improves the risk adjusted returns
of investment portfolios. An important feature of the private
alternatives asset class is that it is less correlated to traditional equity
and fixed income assets, while also exhibiting lower volatility. As we
welcomed the arrival of Palmer and Integrated Asset Management’s
investment teams, we further expanded the breadth and depth of
our real estate and private debt capabilities for our clients.”
John Valentini
President and Chief
Executive Officer,
Fiera Private Alternative
Investments
FIERA CAPITAL CORPORATION 2019 ANNUAL REPORT | 27
A Growing and Diversified
Private Alternatives Platform
At the end of 2019, Fiera Capital had $13.4 billion dollars in AUM and committed
capital in private alternative investment strategies. Our capabilities now span the
spectrum of real estate, infrastructure, private debt, private equity and agriculture.
2019 was a year of growth on many fronts for Fiera Private
Alternative Investments (“FPAI”), Fiera Capital’s dedicated
private alternative investments platform. Assets under
Successful Strategies
Across a Diversified Platform
Some of our more recently introduced strategies, such as
management grew to $12.0 billion ($13.4 including
our agriculture and private equity strategies, are generating
committed capital) as of December 31, up from $8.4
strong returns as a result of our teams’ significant progress in
billion at the end of 2018. Through organic and strategic
deploying capital into quality investments.
growth, we expanded our strategy offering in the space to
just over 20 strategies. We delivered excellent investment
performance across our strategies, and, underpinned by
our core values of integrity and excellence and the trust
our clients put in us, raised $1.4 billion in new client
commitments across our private alternatives platform during
the year and deployed $1.7 billion.
12.0B
Total AUM as at
December 31, 2019
1.4B
Total committed capital as at
December 31, 2019
13.4B
Total AUM and committed
capital as at December 31, 2019
In agriculture, 2019 equity deployments into existing
assets as well as a new investment in a U.S. apple and cherry
farm contributed to growing our Global Agriculture Open-
End Fund L.P.’s AUM to over $500 million and we are pleased
to report that the fund generated an 8.2% return during
the year.
Glacier Global Private Equity Fund I L.P., one of our newest
private alternative fund, launched in 2018, made three
investments during the year, bringing AUM in the fund to
over $100 million and generated a strong 18.8% return.
More established strategies with longer track records
also continued to make inroads with clients and reached
important milestones, in part as a result of Fiera Capital’s
more integrated sales approach. Our EagleCrest Portfolio
Holdings LP, for example, an infrastructure fund investing
in projects in Canada and abroad, crossed the $1 billion
AUM mark during the year, received its first major capital
commitment from a U.S. investor and generated a return of
12.7% in 2019.
Our flagship real estate fund, Fiera Real Estate CORE Fund
L.P., crossed $2 billion in AUM during the year and generated
a return of 8.6%. The fund has ranked in the first quartile of
performance among its Canadian peers over the last 5 years.
All of our private debt strategies performed extremely
well in 2019. As at December 31, 2019, we managed over
$4 billion in AUM and committed capital across a variety of
private lending strategies. As an example, the Fiera Diversified
28
Democratizing access
to attractive investment
opportunities
Private Alternative
Investment Strategies
AUM
as at December 31, 2019
Real Estate
4.5B
Infrastructure
2.7B
Private Debt
2.6B
Asia Credit
1.6B
Agriculture
0.5B
Private Equity
0.1B
FIERA CAPITAL CORPORATION 2019 ANNUAL REPORT | 29
Lending Fund, a fund of funds with AUM of $1.35 billion,
generated a return of 7.9% for the year. This fund is unique
because of its diversified exposure to different types of private
debt investments and geographies. Following the resounding
success this fund has had in Canada over the last 10 years
growing its client count to over one thousand, Fiera Capital has
launched the Global Diversified Lending Fund, LP in the United
States in order to offer the strategy in the United States and
globally. This fund generated a return of 9.3% in 2019 and had
close to $200 million in AUM as at the end of year.
Our Asian debt strategies also had a strong year. Clearwater
Direct Lending Opportunities Fund, L.P., which focuses on
Developed Asia real estate private debt generated a return of
12.5% in 2019 and had $147 million in AUM as at December 31,
2019. Clearwater Capital Yield Fund, L.P., which focuses on Asia
high-yield credit, generated a return of 16.2% in 2019.
We are very proud with the performance generated for
our clients and of the level of dedication and commitment
demonstrated by our teams.
Expanding Our Investment Offering
Our efforts to continuously surpass client expectations and
offer tailored and innovative investment solutions prompted
us to acquire two private alternative investment firms last
year, expanding the number and nature of strategies we can
offer our clients.
Palmer Capital
We acquired an 80% interest in Palmer Capital, a leading UK
focused real estate investment manager, based in London,
in April 2019. This transaction marked Fiera Capital's first
acquisition of a real estate investment management business
outside Canada and its second in the UK market following
its purchase of emerging markets manager Charlemagne
Capital in 2017. The acquisition of Palmer Capital enabled us to
significantly grow our real estate investment strategy offering
while further growing our footprint outside of North America,
particularly in Europe and the United Kingdom – key areas of
focus for us as we expand globally. In 2020, as a result of this
transaction, we will be developing and launching new real
estate strategies offering exposure to the UK and European real
estate markets to our clients.
Integrated Asset Management (“IAM”)
In July 2019, we acquired IAM, one of Canada's leading
alternative asset management companies specializing
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in private debt and real estate, for net consideration of
approximately $64 million. The strong complementarity
between Fiera Capital and IAM’s private debt investment
strategies was transformational for Fiera Private Debt,
turning it into a leading pan-Canadian non-bank private
lending platform. While Fiera Capital’s offering of investment
strategies consisted of loans of 24 months and under and
were primarily offered to private wealth clients, IAM’s private
debt offering was composed of longer-term, 5+ years loans,
and catered to institutional clients. With the two sides
joining forces, we can now offer more strategies to more
clients. Additionally, in 2020, Fiera Capital expects to launch
a new closed-end fund with exposure to 2-to-5 year loans,
therefore covering the entire spectrum of debt maturities
and creating new opportunities for new and existing clients
to invest with us.
Moreover, in real estate investment strategies, IAM
is also contributing to diversifying our strategy offering.
With a complementary niche offering focused on industrial
properties, IAM will help accelerate the growth of our real
estate platform.
Adding Top Talent and Expertise
In lockstep with our increasing number of strategies, our team
of FPAI professionals has grown accordingly. As at December
31, we had 240 employees devoted to our private alternative
investment space, up from 150 a year earlier. Building
teams for the alternative investment side of the business
differs greatly from that of building teams for the traditional
investment side. The fundamentals of each business model
are different and therefore the skill set required is different.
In 2019, we focused on attracting and retaining talent with
expertise in sourcing and originating deals, underwriting and
conducting due diligence reviews. In addition, our teams
devote an important amount of their time to monitoring
activities – staying abreast of how our investments are
performing, raising flags quickly and addressing issues in
a timely manner are what allow us to generate alpha for
our clients.
Under the leadership of John Valentini, FPAI’s dedicated
management team is tasked with providing oversight for
all of the firm’s private alternative investments businesses,
ensuring better governance and risk management, as well
as improving coordination and collaboration between the
different teams, streamlining of operations, and the creation
of intelligence synergies.
Principals In Thought Leadership
Our teams kept very busy during the year. On top of their
day to day of meeting with clients and potential clients
and seeking out profitable investment opportunities, they
drafted white papers for our clients and organized five
well-attended conferences across three continents featuring
prominent guest speakers. With continued investor interest
in the private alternative investment universe, we will
carry on the practice of organizing Fiera Capital-branded
conferences and seminars throughout 2020 in order to
further establish ourselves as thought leaders.
We also implemented multiple ESG initiatives across the
FPAI spectrum. These initiatives are important to our clients,
and important to us. We have taken on the responsibility of
integrating and standardizing our ESG practices at all levels.
It’s a work in progress, and some strategies are further along
this road than others, but as we persist in investing time
and energy in the gamut of our strategies, we expect they
will all reflect the conscientious steward of capital that Fiera
Capital has become.
Notwithstanding the last 10 years of equity market
expansion, private alternative investments have garnered
increased investor attention due to their unique investment
characteristics; they offer attractive returns with a lower
degree of volatility and correlation to traditional asset
classes as well as steady and predictable cash flows.
Regrettably, access to this asset class has historically
been limited to large pension funds and has required
significant minimum commitments. Fiera Capital’s
approach to private alternative investments has been
to make them available to a wider range of clients, as
part of its objective to democratize access to investment
opportunities, making it easier for smaller investors to
gain exposure to this asset class. In addition, many of
Fiera Capital’s private alternative investment strategies are
open-ended, providing investors with the flexibility to invest
or redeem funds at multiple points in time, as opposed
to the long-standing closed-ended fund model offering a
unique entry and exit date.
As a result of the successful take-up we have been privy
to and with a constant desire to remain innovative and
ahead of the curve, we will continue developing solutions
that increase portfolio diversification through investments
in real estate, infrastructure, private debt, agriculture and
private equity.
FIERA CAPITAL CORPORATION 2019 ANNUAL REPORT | 31
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As a conscientious steward of
capital with a growing global
reputation and reach, Fiera Capital
continues to thrive in its approach
to responsible investment. At a
minimum, this entails thoroughly
integrating the assessment of
material environmental, social and
governance (ESG) risk factors into
how we manage assets on behalf
of our clients.
In 2019, we built on the
progress already made.
Implemented a new proxy
voting policy
Had our MSCI ESG rating upgraded
to ‘A’ from ‘BBB’
We adopted new proxy voting guidelines in 2019 governing
the exercise of voting rights related to environmental and
social related proposals. As such, Fiera Capital will exercise its
voting rights in a manner that maintains the highest standards
of corporate governance, sustainability of the business and
practices of the companies whose shares we hold. In drafting
the new policy, we drew inspiration from globally recognized
best practices. At Fiera Capital, we believe that high
standards are fundamental to maximizing shareholder value
as well as protecting the interests of shareholders.
Enhanced ESG integration
Fiera Capital continues to refine its data, tools and techniques
to improve the integration and efficacy of ESG risk factor
assessments. The objective is to facilitate data analysis and
draw more insightful conclusions, which ultimately gets fully
integrated in the decision-making process. What’s more,
this also allows the teams to remain fully aligned with their
various mandates.
One example is the proprietary ESG scoring system
developed by the CIO office in New York. Fiera Capital
believes this scoring system will give its investment teams
an edge in making higher quality investment decisions,
particularly with regards to U.S. municipal fixed income
instruments.
Introduced carbon intensity
monitoring
We introduced new ways to monitor the carbon footprint of
a portfolio against its benchmark and introduced a carbon
attribution report.
MSCI noted that Fiera Capital continues to lead its
industry peers in incorporating ESG principles into its
business activities with its responsible investment policies,
thereby enabling effective management of ESG risks
and opportunities. MSCI’s report also made light of the
Company’s improvements in reinforcing its cybersecurity
programs through training provided to its employees.
Improved our ranking in the
United Nations Principles for
Responsible Investment survey
In 2009, Fiera Capital became an early signatory to the
United Nations Principles for Responsible Investment
(UN PRI).
As a UN PRI signatory, we are asked to report on and
assess our ESG integration efforts on an annual basis. We
are pleased to report that in 2019, Fiera Capital’s assessment
score relative to both its investments in property and
infrastructure improved from a B to an A and that we have
maintained our A+ score in Strategy and Governance.
Continued to develop strategies across
our responsible investment spectrum
The integration of ESG factors in asset management is
becoming increasingly important. As responsible investing
takes on a bigger role in portfolio construction, investors
are seeking more ESG-focused strategies. Fiera Capital has
built on its previous initiatives by integrating even more ESG
principles across its investment spectrum to include various
sustainability approaches.
We have worked on developing an internal and proprietary
While carbon disclosure practices still need improvement,
these reports are meant to support the investment teams in their
decision-making as they relate to environmental risk factors, an
increasingly important criteria in the risk/reward proposition.
impact scoring methodology that we now use in our impact
investment strategies, i.e.; investment strategies that hold
equity or debt in companies whose projects intend to have a
positive impact on the environment and society.
For more information about Fiera Capital’s commitment to responsible investing view our 2019 Responsible Investing and
Corporate Social Responsibility Report.
FIERA CAPITAL CORPORATION 2019 ANNUAL REPORT | 33
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Fiera Capital’s Global CSR Committee launched several initiatives
in 2019 in line with its three areas of focus: Diversity and Inclusion,
the Environment and Community Partnerships.
In 2019, we launched our first cohort for The A
Effect's "Défi 100 jours." Over the course of 100
days, a cohort of professional and ambitious women
lived a unique journey of professional development
that included workshops, encounters with inspiring
leaders, web conferences and an exclusive learning
platform, all designed to help women better
communicate their ambition, boost their confidence
and their influence, encourage them to take risks and
develop their networks.
Although we’ve made inroads with regards to
promoting diversity and inclusion, the work
doesn’t end there. Upcoming initiatives will target
a wider audience to ensure talent is discovered
and recognized irrespective of background. All
employees will be receiving training tailored to their
respective roles during the current year.
The Fiera Capital Foundation (formerly The
CGOV Foundation) was introduced to the firm’s
private clients in order to allow them to pursue their
philanthropic passions through strategic and focused
charitable giving, while also providing an efficient
tax and estate planning tool. The Foundation also
has an underlying objective of funding employees’
participation in various charitable initiatives. By setting
aside funds for this specific cause, we look forward to
seeing an increase in our employees’ involvement in
projects that will benefit their local communities.
Social initiatives promoted during the year included
hosting an Earth Jam, a global and innovative
employee endeavour to reflect Fiera Capital’s
commitment to reduce its environmental footprint
along the themes of energy, recyclable materials
and sustainable consumption.
We expect the benefits of all of these initiatives will have a positive impact on our Firm and the various communities where we live
and work in 2020 and beyond. For more information about Fiera Capital’s commitment to corporate social responsibility view our
2019 Responsible Investing and Corporate Social Responsibility Report.
FIERA CAPITAL CORPORATION 2019 ANNUAL REPORT | 35
36
Management’s Discussion
and Analysis
For the three and twelve-month periods ended December 31, 2019
Consult the document online.
FIERA CAPITAL CORPORATION 2019 ANNUAL REPORT | 37
Annual Report of the Audit
and Risk Management Committee
To Our Shareholders
Fiera Capital Corporation (“Fiera Capital” or “Fiera” or the
“Company”) is committed to providing high-quality, reliable
and relevant financial reporting. Accordingly, Fiera Capital
ensures it maintains sound accounting, internal controls and
risk management practices.
Fiera Capital’s Audit and Risk Management Committee
(“Committee”) actively assists the Board of Directors (“Board”)
in fulfilling its oversight responsibilities in the following areas:
i) the integrity of Fiera’s interim and annual consolidated
financial statements, as well as related information included
in their respective Management’s Discussion and Analysis,
Press Releases and in the Annual Information Form (“AIF”);
ii) on the one hand, the adequacy of the design of Fiera’s
system of disclosure controls and procedures, as well as
of its system of internal controls with respect to Fiera’s
financial reporting, asset protection and fraud detection,
and, on the other hand, the effectiveness of their
applications;
iii) the evaluation of Fiera’s auditor including its
qualifications, independence, appointment, performance
and compensation;
iv) the appropriateness of Fiera’s risk management policies,
programs and practices;
v) Fiera’s compliance with legal and regulatory requirements,
as well as with its ethical standards; and
vi) any assignments or functions as delegated to it by
the Board.
The Committee examines the information resulting from this
governance process every quarter.
In connection with fulfilling its duties, the Committee met
five times in 2019. Top and senior members of Fiera Capital’s
management team attended these meetings. The agenda of
the meetings included systematic private sessions, respectively
with the Chairman and Chief Executive Officer, the Global
President and Chief Operating Officer, the Executive Vice
President and Global Chief Financial Officer, the Executive
Vice President, Chief Legal Officer and Corporate Secretary,
and the Chief Compliance Officer. In these private sessions,
the Committee and the aforementioned Officers had
discussions regarding Fiera Capital’s financial disclosures,
financial and non-financial risk management, treasury, global
talent structure and management as well as legal, accounting,
auditing and internal control matters. Such meetings support
direct and open communication between the Committee
and management.
Audit and Risk Management Committee Charter
The Committee is governed by the Audit and Risk
Management Committee Charter (the “Charter”). The
Charter is contained in the Company’s AIF, which is available
on Fiera Capital’s website (www.fiera.com). The Charter
is reviewed at least annually to ensure the Committee’s
responsibilities are in compliance with the moving applicable
regulatory environment.
The Charter was reviewed and approved by the Board
on March 18, 2020. In accordance with sound corporate
governance practices, the Committee reviews on a quarterly
basis its efficiency and effectiveness in executing its mandate
as set out in its Charter. In 2019, the self-assessment of the
Committee was performed through a formal questionnaire
distributed and reviewed by the Governance Committee of
the Board.
Independent Auditor
Fiera Capital’s independent auditor, Deloitte LLP
(“Deloitte”), reports directly to the Committee, which has
sole authority over the recommendation of its appointment
or revocation if required, its oversight, its compensation, and
its annual evaluation.
The Committee supervises the work of Deloitte. The
exercise includes examining the audit proposal, the audit
mandate, the annual audit strategy, interim and annual
reports to the Committee, communications to management,
and associated management’s comments and action plans.
On a quarterly basis, the Committee holds discussions with
Deloitte within an in-camera private session. The audit results,
the internal control over financial reporting review, as well
as the overall quality of financial reporting are reviewed and
discussed with Deloitte. At the end of the external 2019
annual audit, the Committee discussed the quality of the audit
process with management and with the Auditor separately.
The exercise relied on their self-assessment of audit quality
indicators selected and pre-agreed between the Committee,
management and the auditor.
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The Committee contributes to ensuring the independence
of the auditor by approving all audit and non-audit services
to be conducted by Deloitte in accordance with Fiera’s Pre-
Approval of the External Audit and Non-Audit Services Policy.
The Chair of the Committee meets with Deloitte at least
on a quarterly basis to foster open dialogue as well as with the
Executive Vice President and Global Chief Financial Officer.
In 2019, the Committee reviewed and discussed with
management its assessment of the independent auditor. The
Committee concluded to recommend the reappointment of
Deloitte as independent auditor of Fiera Capital.
Audit and Risk Management Committee Activities for
Fiscal Year 2019
In 2019, in addition to its statutory responsibilities, the
following activities were conducted by the Committee:
Monitored the internal control over the financial reporting
program based on the criteria of the 2013 COSO framework
for ensuring the requirements of NI 52-109 were met;
Oversaw the implementation of the Information Security
and Cyber Security programs;
Reviewed updates of the ERM top risks dashboard;
Reviewed the 2019 Audit Quality Indicators;
Discussed audit quality inspection conclusions obtained
from Deloitte’s internal inspection process and, also from
independent CPAB inspections;
Discussed the rationale under the non-IFRS financial
measures disclosed in public documents within the perspective
of recent regulatory developments;
Oversaw the impact of IFRS 16 -Leases standards;
Reviewed the Corporate insurance coverage program
including the Cyber Security Insurance covering;
Held in-camera discussions with the Chairman and Chief
Executive Officer, the Global President & Chief Operating
Officer, the Global Chief Financial Officer, the Chief Legal
Officer and the Chief Compliance Officer;
Met the IT team leaders for introduction to new members
and for better understanding of their major initiatives;
Determined the Committee’s objectives of its 2019 annual
work plan.
Audit and Risk Management Committee Training Sessions
In 2019, the Committee maintained a continuous education
process with sessions on the following subject matters:
— latest trends in cyber security and in cyber security
insurance market; and
— market perspectives regarding the 2022 Strategic Plan.
Audit and Risk Management Committee Membership
The Committee’s membership comprises three directors
of which two are independent (Mr. Raymond Laurin and
Mr. Gary Collins) and the third (Mrs. Lise Pistono) appointed
under the section 3.3(2) exemption in NI 52-110 as disclosed in
the Company’s AIF. The three directors are financially literate.
Education and Experience Of Audit And Risk Management
Committee Members
The following is a brief description of the qualifications,
education and experience of each current member of the
Committee that are relevant to the execution of their
responsibilities as members of the Committee.
Mr. Raymond Laurin, FCPA, FCA, Adm.A, ASC, is a Corporate
Director. During his 32-year career with Desjardins Group, he
served namely as Senior Vice President, Finance and Treasury,
and Chief Financial Officer. In addition, he was functional
manager of the Desjardins Group Audit and Inspection
Commission, the Fonds de sécurité Desjardins and the
Desjardins Group Pension Plan. Mr. Laurin is a Fellow of the
Ordre des comptables professionnels agréés du Québec.
Mr. Gary Collins is a senior advisor at Lazard Ltd., a global
investment bank. In addition, Mr. Collins is a director of Chorus
Aviation Inc., Rogers Sugar Ltd., Stuart Olson, and DRI Health
Care PLC. Mr. Collins has also previously served as a director on
the boards of Catalyst Paper Corporation, D-Box Technologies
Inc. and Liquor Stores North America. Mr. Collins served as the
President of Coastal Contacts Inc. Prior to that, Mr. Collins was
the President and Chief Executive Officer of Harmony Airways
and was also a member of the British Columbia Legislative
Assembly and served as Minister of Finance.
Mrs. Lise Pistono, CPA, CA, is Vice President and Chief
Financial Officer of DJM Capital Inc. Previously, she was with
KPMG supporting public companies in their financial disclosure
requirements and served as a senior finance officer for a
Bell Canada subsidiary, as well as a private office furniture
and supplies company. Mrs. Pistono also served as senior
management of the Internal Audit Department at Montreal
Trust and at Bell Canada. In addition, she has over 20 years of
teaching experience at HEC Montréal in Applied Economics,
Quantitative Methods and Accounting.
— disclosure practices of IFRS-16 Leases;
— current disclosure practices of non-IFRS measures in the
industry and related disclosure compliance requirements;
— new requirements for auditors to report the Key Audit
Matters;
The members of the Audit and Risk Management Committee
Raymond Laurin, Chair
Gary Collins
Lise Pistono
March 18, 2020 – Montréal
FIERA CAPITAL CORPORATION 2019 ANNUAL REPORT | 39
40
Consolidated
Financial Statements
December 31, 2019 and 2018
Consult the document online.
FIERA CAPITAL CORPORATION 2019 ANNUAL REPORT | 41
Corporate Information
Executive Officers
Jean-Guy Desjardins
Chairman of the Board
and Chief Executive Officer
Vincent Duhamel
Vice Chairman of the Board
Jean-Philippe Lemay
Global President and
Chief Operating Officer
Lucas Pontillo
Executive Vice President and Global Chief
Financial Officer
John Valentini
President and Chief Executive Officer,
Fiera Private Alternative Investments
François Bourdon
Global Chief Investment Officer
Gabriel Castiglio
Executive Vice President, Chief Legal
Officer and Corporate Secretary
Ted Ecclestone
Executive Vice President and Head of
Private Wealth, Canadian Division
Nicolas Papageorgiou
Chief Investment Officer,
Canadian Division
Daniel Richard
Senior Vice President, Global Human
Resources and Corporate Communications
and Chief Human Resources Officer
Benjamin S. Thompson
President and Chief Executive Officer,
U.S. Division
Sebastian Blandizzi
Global Chief Technology and Operations
Officer
Michael Quigley
Executive Vice President and Head of
Institutional Markets
Thomas Di Stefano
Interim Chief Compliance Officer
Head Office
1981 McGill College Avenue, Suite 1500
Montreal, Quebec, Canada H3A 0H5
T 514 954-3300
T 1 800 361-3499 (toll free)
F 514 954-5098
info@fieracapital.com
fiera.com
Transfer Agent and Registrar for
Fiera Capital Class A Subordinate
voting shares
Computershare Investor Services Inc.
100 University Avenue, 8th Floor
Toronto, Ontario, Canada M5J 2Y1
T 1 800 564-6253
(toll free Canada and United States)
T 514 982-7555
(international direct dial)
computershare.com
Transfer Agent and Registrar
for Fiera Capital Debentures and
Indenture Trustee
Computershare Trust
Company of Canada
1500 Robert-Bourassa Blvd., Suite 700
Montreal, Quebec, Canada H3A 3S8
T 514 982-7888
Auditor
Deloitte LLP
Stock Exchange Listing
• Fiera Capital’s Class-A subordinate
voting shares are listed on the TSX
under the symbol FSZ
• Fiera Capital’s 5.00% convertible
unsecured subordinated debentures
due June 30, 2023, are listed on the
TSX under the symbol FSZ.DB
• Fiera Capital’s 5.60% senior
subordinated unsecured debentures
due July 31, 2024, are listed on the TSX
under the symbol FSZ.DB.A
Annual and Special Meeting
Virtual AGM
Password: fiera2020
May 28, 2020, 9.30 a.m. EDT
This document may contain certain forward-looking statements. These statements
relate to future events or future performance, and reflect management’s
expectations or beliefs regarding future events, including business and economic
conditions and Fiera Capital’s growth, results of operations, performance and
business prospects and opportunities. Such forward-looking statements reflect
management’s current beliefs and are based on information currently available
to management. In some cases, forward-looking statements can be identified
by terminology such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”,
“believe”, “potential”, “continue”, “target” or the negative of these terms, or other
comparable terminology. By their very nature, forward-looking statements involve
inherent risks and uncertainties, both general and specific, and a number of factors
could cause actual events or results to differ materially from the results discussed
in the forward-looking statements. In evaluating these statements, readers
should specifically consider various factors that may cause actual results to differ
materially from any forward-looking statement.
These factors include, but are not limited to, market and general economic
conditions, the nature of the financial services industry, and the risks and
uncertainties detailed from time to time in this Annual Report and Fiera Capital’s
interim and annual consolidated financial statements and Management’s
Discussion and Analysis contained herein, as well as Fiera Capital’s Annual
Information Form filed on www.sedar.com. These forward-looking statements are
made as of the date of this document, and Fiera Capital assumes no obligation to
update or revise them to reflect new events or circumstances, except as required
by applicable law. This document is intended only to provide general information
and is not intended to be and should not be construed or relied upon as legal
or other professional advice. Fiera Capital assumes no liability by providing this
guidance to its clients or any other person or entity. The information provided
herein may or may not
apply in any particular situation. Users should carefully review the guidance
included here to determine applicability. The information and opinions herein
are provided for informational purposes only and are subject to change. The
information provided herein does not constitute investment advice and it
should not be relied on as such. It should not be considered a solicitation to
buy or an offer to sell a security. Performance figures pertaining to composites
are aggregations of the performance of one or more client portfolios or pooled
funds that represent similar investment strategies. Further information on the
investment strategy of composites and pooled funds managed
by Fiera Capital or its affiliates can be found at www.fieracapital.com. All
performance data is time weighted and assumes reinvestment of all distributions
or dividends and does not take into account other charges or income taxes
payable that would have reduced returns. Valuations and returns are computed
and stated in Canadian dollars, unless otherwise noted. Past performance is no
guarantee of future results and other calculation methods may produce different
results. Individual account or fund performance will vary. Information pertaining
to Fiera pooled funds is not to be construed as a public offering of securities in any
jurisdictions of Canada or otherwise.
The offering of units of Fiera Capital pooled funds is made pursuant to the funds’
respective trust agreements and only to those investors in jurisdictions of Canada
who meet certain eligibility or minimum purchase requirements. Important
information about Fiera Capital pooled funds, including a statement of the fund’s
investment objective, is contained in their trust agreements, a copy of which may
be obtained from Fiera Capital. Unit values and investment returns will fluctuate.
Please read the trust agreement of the pooled funds before investing. Pooled funds
are not guaranteed, their values change frequently and past performance may not
be repeated.
42
Contact Us
North America
Montreal
Toronto
Calgary
Fiera Capital Corporation
1981 McGill College Avenue
Suite 1500
Montreal, Quebec
H3A 0H5
T 1 800 361-3499
Fiera Capital Corporation
1 Adelaide Street East
Suite 600
Toronto, Ontario
M5C 2V9
T 1 800 994-9002
Fiera Capital Corporation
607 8th Avenue SW
Suite 300
Calgary, Alberta
T2P 0A7
T 403 699-9000
fiera.com
New York
Fiera Capital Inc.
375 Park Avenue
8th Floor
New York, New York
10152
T 212 300-1600
Europe
London
Fiera Capital (UK) Limited
Queensberry House
3 Old Burlington Street
London, United Kingdom
W1S 3AE T
T +44 20 7518 2100
Boston
Dayton
Los Angeles
Fiera Capital Inc.
One Lewis Wharf
3rd Floor
Boston, Massachusetts
02110
T 857 264-4900
Fiera Capital Inc.
10050 Innovation Drive
Suite 120
Dayton, Ohio
5342
T 937 847-9100
Asia
Bel Air Investment Advisors
1999 Avenue of the Stars
Suite 3200
Los Angeles, California
90067
T 1 877 229-1500
Frankfurt
Hong Kong
Singapore
Fiera Capital (UK) Limited
Walther-von-Cronberg-Platz 13
Frankfurt, Germany
60594
T +49 69 9202 0750
Clearwater Capital Partners
Suite 3205
No. 9 Queen’s Road Central
Hong Kong
T 852-3713-4800
Clearwater Capital Partners
6 Temasek Boulevard
#38-03
Suntec Tower 4
Singapore 038986
IMPORTANT DISCLOSURES
Fiera Capital Corporation is a global asset management firm with affiliates in various
jurisdictions (collectively, “Fiera Capital”). The information and opinions expressed herein
relate to Fiera Capital’s investment advisory services and investment funds and are provided
for informational purposes only. It is subject to change and should not be relied upon as
the basis of any investment or disposition decisions. While not exhaustive in nature, these
Important Disclosures provide important information about Fiera Capital and its services
and are intended to be read and understood in association with all materials available at
Fiera Capital’s websites.
Past performance is no guarantee of future results. All investments pose the risk of loss and
there is no guarantee that any of the benefits expressed herein will be achieved or realized.
Valuations and returns are computed and stated in Canadian dollars, unless otherwise noted.
The information provided herein does not constitute investment advice and it should not
be relied on as such. It should not be considered a solicitation to buy or an offer to sell
a security. It does not take into account any investor’s particular investment objectives,
strategies, tax status or investment horizon. There is no representation or warranty as to
the current accuracy of, nor liability for, decisions based on such information. Any opinions
expressed herein reflect a judgment at the date of publication and are subject to change.
Although statements of fact and data contained in this presentation have been obtained
from, and are based upon, sources that we believe to be reliable, we do not guarantee their
accuracy, and any such information may be incomplete or condensed. No liability will be
accepted for any direct, indirect or consequential loss or damage of any kind arising out of
the use of all or any of this material.
Views expressed regarding a particular company, security, industry or market sector should
not be considered an indication of trading intent of any funds or accounts managed by any
Fiera Capital entity.
Each entity of Fiera Capital only provides investment advisory services or offers investment
funds in the jurisdictions where such member and/or the relevant product is registered
or authorized to provide such services pursuant to an exemption from such registration.
These include the entities listed below. Where an entity operates under an exemption from
registration (the “Exempt Entities”), only its jurisdiction of incorporation is listed. Details
on the particular registration and offering exemptions for the Exempt Entities’ activities are
available upon request.
• Fiera Capital Corporation – Canada, registered: (i) in the categories of exempt market
dealer and portfolio manager in all Provinces and Territories of Canada (ii) in the category of
investment fund manager in the Provinces of Ontario, Québec, Newfoundland and Labrador;
(iii) as a commodity trading manager pursuant to the Commodity Futures Act (Ontario), (iv)
as an adviser under the Commodity Futures Act (Manitoba) and, (v) in Québec, as derivatives
portfolio manager pursuant to the Derivatives Act (Québec);
• Fiera Capital Inc. – United States, registered as (i) an investment adviser with the U.S.
Securities and Exchange Commission (the “SEC”)* and (ii) a commodity pool operator with
the U.S. Commodity Futures Trading Commission.
• Bel Air Investment Advisors LLC—United States, registered as an investment adviser
with the SEC.*
• Bel Air Management LLC - United States, registered as an investment adviser with the SEC.*
• Bel Air Securities LLC – Unites States, registered as a broker-dealer with the SEC* and is
registered as a broker-dealer in the following states: Arkansas, Arizona, California, Colorado,
Connecticut, District of Columbia, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana,
Iowa, Kansas, Kentucky, Massachusetts, Maryland Michigan, Minnesota, Missouri, Montana,
North Carolina, New Hampshire, New Jersey, New Mexico, Nevada, New York, Ohio,
Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Virginia, Virgin
Islands, Washington, and Wyoming.
• Wilkinson Global Asset Management LLC - United States, registered as an investment
advisor with the SEC.*
• Fiera Capital (UK) Limited – United Kingdom, authorized and regulated by the Financial
Conduct Authority. United States, registered as an investment adviser with the SEC*.
• Fiera Capital (IOM) Limited – Isle of Man, licensed by the Isle of Man Financial Services
Authority. United States, registered as an investment adviser with the SEC*.
• Fiera Real Estate Investment Limited – A corporation incorporated under the laws of the
province of Ontario (Canada).
• Fiera Infrastructure Inc. – A corporation incorporated under the laws of Canada.
• Fiera Comox Partners Inc. – A corporation incorporated under the laws of Canada.
• Fiera Private Debt Inc. – A corporation incorporated under the laws of the province of
Québec (Canada).
• Clearwater Capital Partners Singapore Pte Ltd. – Singapore, licensed by the Monetary
Authority of Singapore for the provision of Capital Markets Services in Fund Management
and an Exempt Reporting Adviser with the SEC*.
• Clearwater Capital Partners Hong Kong Limited – Hong Kong, licensed by the Securities and
Futures Commission for the provision of Type 9 Asset Management services and an Exempt
Reporting Adviser with the SEC.*
• Clearwater Capital Partners, L.P. – Cayman Islands, registered with the Cayman Islands
Monetary Authority under the category of Securities, Excluded Persons and an Exempt
Reporting Adviser with the SEC.*
• Invista Real Estate Investment Management Limited – United Kingdom, authorized and
regulated by the Financial Conduct Authority as a regulated investment manager.
• IAM Securities Corp. - Canada, registered as an exempt market dealer with the Ontario
Securities Commission.
• Fiera Investments LP – Canada, registered as an exempt market dealer in all Provinces and
Territories of Canada.
• Fiera Real Estate Investors UK Limited – United Kingdom, authorised by the Financial
Conduct Authority as a small authorised UK Alternative Investment Fund Manager (AIFM)
(sub-threshold).
* Neither registration with nor regulation by the SEC implies a certain level of skill or training.
FIERA CAPITAL CORPORATION 2019 ANNUAL REPORT | 43