News

Fiera Capital and Fiera Investments Announce Sale of Retail Mutual Funds to Canoe Financial LP

/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/

MONTREAL, April 9, 2020 /CNW Telbec/ – Fiera Capital Corporation (TSX: FSZ) (“Fiera Capital” or the “Company”) and its wholly-owned subsidiary, Fiera Investments LP (“Fiera Investments”), announced today that they have reached a definitive agreement with Canoe Financial LP (“Canoe”), pursuant to which Canoe has agreed to acquire the rights to manage all of Fiera Investments’ retail mutual funds listed below (the “Mutual Funds”).

“This transaction will allow Fiera Capital to broaden its existing partnership with Canoe by leveraging the combination of Canoe’s strong distribution network in the Canadian retail market and Fiera Capital’s excellence in investment management,” said Jean‑Phillippe Lemay, Global President and Chief Operating Officer of Fiera Capital. “Canoe is one of the fastest growing entities in the Canadian mutual fund industry, with over $5.45 billion in assets across a diversified range of award-winning mutual funds, and we are very pleased to enhance our relationship with this long-standing strategic partner.”

“We are very pleased to have reached an agreement to acquire Fiera Investments’ high quality mutual fund line-up, and look forward to continuing to offer their investors industry-leading active portfolio management,” said Darcy Hulston, President and Chief Executive Officer of Canoe. “This transaction builds upon our continued partnership with Fiera Capital, which has not only been beneficial to our respective firms, but also and most importantly to our investors.”

Canoe has agreed to acquire the rights to manage the following Mutual Funds:

  • The “Trust Funds”, consisting of the following funds:
    • Fiera Canadian Bond Fund
    • Loomis Sayles Global Diversified Corporate Bond Fund
    • Loomis Sayles Strategic Monthly Income Fund
    • Fiera Strategic Balanced Registered Fund
    • Fiera Intrinsic Balanced Registered Funds
    • Fiera Canadian Dividend Registered Fund
    • Fiera U.S. Dividend Registered Fund
    • Fiera Core Global Equity Registered Fund
    • Fiera Canadian Preferred Share Registered Fund
    • Oakmark U.S. Equity Registered Fund
    • Oakmark International Equity Registered Fund

 

  • The “Class Funds” consisting of the following funds:
    • Fiera Canadian Bond Class
    • Loomis Sayles Global Diversified Corporate Bond Class
    • Fiera Strategic Balanced Class
    • Fiera Intrinsic Balanced Class
    • Fiera Canadian Dividend Class
    • Fiera U.S. Dividend Class
    • Fiera Core Global Equity Class
    • Fiera Canadian Preferred Share Class
    • Oakmark U.S. Equity Class
    • Oakmark International Equity Class

 

The transaction is expected to close on or about June 26, 2020 and is subject to, among other matters, receiving all necessary securityholder and regulatory approvals, as well as satisfying other customary closing conditions.

Upon completion of the proposed transaction and subject to receipt of all necessary approvals, Canoe will become the trustee of the Trust Funds, as well as the manager and portfolio manager of the Mutual Funds. All Mutual Funds will undergo a name change to continue under the Canoe banner, and, on or about July 3, 2020, Canoe intends to merge each of the Mutual Funds into the corresponding retail mutual fund managed by Canoe as specified below. As part of the agreement, Canoe has agreed to retain Fiera Capital to act as sub-advisor for certain of the Canoe funds into which the Mutual Funds will be merged.

Securityholders of the Mutual Funds will be asked to approve the proposed change of manager from Fiera Investments to Canoe and the proposed merger of their Mutual Funds into the corresponding Canoe fund, and unitholders of the Trust Funds will be asked to vote on the proposed change of trustee from Fiera Investments to Canoe, at special meetings.

Details about the changes will be contained in the meeting materials to be mailed to securityholders of the Mutual Funds. Fiera Investments will refer the proposed transaction to the Independent Review Committee of the Mutual Funds, which acts in an advisory capacity representing the interests of the Mutual Funds and securityholders with respect to conflict of interest matters. The Independent Review Committee will be asked to review the proposals and determine that, if implemented, each proposal would achieve a fair and reasonable result for the Mutual Funds.

Below is a summary of the proposed material changes to each of the Mutual Funds:

Name of Mutual Fund  

Proposed Changes  

Fiera Intrinsic Balanced

Registered Fund

(to be renamed Canoe Intrinsic

Balanced Registered Fund)

  • Change of trustee, investment fund manager and portfolio manager
  • Merger into Canoe Defensive Global Balanced Fund

Fiera Canadian Bond Fund

(to be renamed Canoe Canadian

Bond Fund)

  • Change of trustee, investment fund manager and portfolio manager
  • Merger into Canoe Bond Advantage Portfolio Class, which consists of Canoe Bond Advantage Class and units of Canoe Trust Fund

Loomis Sayles Global

Diversified Corporate Bond

Fund

(to be renamed Canoe Global

Diversified Corporate Bond Fund)

  • Change of trustee, investment fund manager and portfolio manager
  • Merger into Canoe Global Income Fund

Fiera Canadian Preferred

Share Registered Fund

(to be renamed Canoe Canadian

Preferred Share Registered Fund)

  • Change of trustee, investment fund manager and portfolio manager
  • Merger into Canoe Preferred Share Portfolio Class, a new Canoe Portfolio Class Fund consisting of Canoe Preferred Share Class and units of Canoe Trust Fund

Fiera Canadian Dividend

Registered Fund

(to be renamed Canoe Canadian

Dividend Registered Fund)

  • Change of trustee, investment fund manager and portfolio manager
  • Merger into Canoe Premium Income Fund

Fiera U.S. Dividend

Registered Fund

(to be renamed Canoe U.S. Dividend

Registered Fund)

  • Change of trustee, investment fund manager and portfolio manager
  • Merger into Canoe Defensive U.S. Equity Portfolio Class, which consists of Canoe Defensive U.S. Equity Class and units of Canoe Trust Fund

Oakmark U. S. Equity

Registered Fund

(to be renamed Canoe U.S. Equity

Registered Fund)

  • Change of trustee, investment fund manager and portfolio manager
  • Merger into Canoe Defensive U.S. Equity Portfolio Class, which consists of Canoe Defensive U.S. Equity Class and units of Canoe Trust Fund

Fiera Strategic Balanced

Registered Fund

(to be renamed Canoe Strategic

Balanced Registered Fund)

  • Change of trustee, investment fund manager and portfolio manager
  • Merger into Canoe North American Monthly Income Portfolio Class, which consists of Canoe North American Monthly Income Class and units of Canoe Trust Fund

Fiera Core Global Equity

Registered Fund

(to be renamed Canoe Core Global

Equity Registered Fund)

  • Change of trustee, investment fund manager and portfolio manager
  • Merger into Canoe Global Equity Fund

Oakmark International Equity

Registered Fund

(to be renamed Canoe International

Equity Registered Fund)

  • Change of trustee, investment fund manager and portfolio manager
  • Merger into Canoe Defensive International Equity Fund

Loomis Sayles Strategic

Monthly Income Fund

(to be renamed Canoe Strategic

Monthly Income Fund)

  • Change of trustee and investment fund manager
  • Merger into Canoe Global Income Fund

Fiera Intrinsic Balanced Class

(to be renamed Canoe Intrinsic

Balanced Class)

  • Change of investment fund manager and portfolio manager
  • Merger into Canoe Defensive Global Balanced Fund

Fiera Canadian Bond Class

(to be renamed Canoe Canadian

Bond Class)

  • Change of investment fund manager and portfolio manager
  • Merger into Canoe Bond Advantage Portfolio Class, which consists of Canoe Bond Advantage Class and units of Canoe Trust Fund

Loomis Sayles Global

Diversified Corporate Bond

Class

(to be renamed Canoe Global

Diversified Corporate Bond Class)

  • Change of investment fund manager and portfolio manager
  • Merger into Canoe Global Income Portfolio Class, which consists of Canoe Global Income Class and units of Canoe Trust Fund

Fiera Canadian Preferred

Share Class

(to be renamed Canoe Canadian

Preferred Share Class)

  • Change of investment fund manager and portfolio manager
  • Merger into Canoe Preferred Share Portfolio Class, a new Canoe Portfolio Class Fund consisting of Canoe Preferred Share Class and units of Canoe Trust Fund

Fiera Canadian Dividend

Class

(to be renamed Canoe Canadian

Dividend Class)

  • Change of investment fund manager and portfolio manager
  • Merger into Canoe Premium Income Fund

Fiera U.S. Dividend Class 

(to be renamed Canoe U.S. Dividend

Class)

  • Change of investment fund manager and portfolio manager
  • Merger into Canoe Defensive U.S. Equity Portfolio Class, which consists of Canoe Defensive U.S. Equity Class and units of Canoe Trust Fund

Oakmark U.S. Equity Class

(to be renamed Canoe U.S. Equity

Class)

  • Change of investment fund manager and portfolio manager
  • Merger into Canoe Defensive U.S. Equity Portfolio Class, which consists of Canoe Defensive U.S. Equity Class and units of Canoe Trust Fund

Fiera Strategic Balanced

Class

(to be renamed Canoe Strategic

Balanced Class)

  • Change of investment fund manager and portfolio manager
  • Merger into Canoe North American Monthly Income Portfolio Class, which consists of Canoe North American Monthly Income Class and units of Canoe Trust Fund

Fiera Core Global Equity

Class

(to be renamed Canoe Core Global

Equity Class)

  • Change of investment fund manager and portfolio manager
  • Merger into Canoe Global Equity Fund

Oakmark International Equity

Class

(to be renamed Canoe International

Equity Class)

  • Change of investment fund manager and portfolio manager
  • Merger into Canoe Defensive International Equity Fund

 

Forward-Looking Statements

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 Investments’ 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”, “estimate”, “predict”, “potential”, “continue”, “target”, “intend” 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 Fiera Capital’s interim condensed and annual consolidated financial statements, and its latest Annual Report and Annual Information Form filed on SEDAR at 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.

About Fiera Capital Corporation

Fiera Capital is a leading independent asset management firm with approximately C$169.7 billion in assets under management as of December 31, 2019. The firm provides institutional, retail and private wealth clients with access to full-service integrated money management solutions across traditional and alternative asset classes. Clients and their portfolios derive benefit from Fiera Capital’s depth of expertise, diversified offerings and outstanding service. Fiera Capital trades under the ticker FSZ on the Toronto Stock Exchange. www.fieracapital.com

In the U.S., asset management services are provided by the Company’s U.S. affiliates who are investment advisers that are registered with the U.S. Securities and Exchange Commission (SEC). Registration with the SEC does not imply a certain level of skill or training. For details on the particular registration of, or exemptions therefrom relied upon by, any Fiera Capital entity, please consult this webpage.

Additional information about Fiera Capital Corporation, including the Firm’s annual information form, is available on SEDAR at www.sedar.com.

About Fiera Investments LP

Fiera Investments is an independent investment fund manager focused on delivering innovative investment solutions that provide capital growth and income to Canadian investors. Through strategic partnerships with globally recognized investment managers, mutual funds offered by Fiera Investments deploy proven, world-class investment strategies to help investors achieve their financial objectives. Fiera Investments is wholly owned by Fiera Capital Corporation.

About Canoe Financial

Canoe is one of Canada’s fastest growing independent mutual fund companies managing over $5.4 billion in assets across a diversified range of award-winning mutual funds and private energy equity products. Founded in 2008, Canoe Financial LP is an employee-owned investment management firm focused on building financial wealth for Canadians. Canoe Financial has significant national presence across Canada, including offices in Calgary, Toronto and Montreal.

SOURCE Fiera Capital Corporation

The information contained in press releases and company news is valid as of the date indicated. You should not assume that statements remain accurate or valid after the date.