Preferred Shares Universe

Strategy Overview

Strategy Description

The Fiera Preferred Shares Universe strategy combines thorough assessment of macroeconomic factors, extensive credit research, and relative value analysis with the goal of delivering superior returns vs the benchmark. This actively managed strategy seeks to add substantial value through security selection and duration management while benefiting from the team’s deep understanding of the technical preferred share market, resulting in a well-diversified portfolio with a focus on high quality issuers.

Key Differentiators

High yield asset class offering a significant source of dividend income
Average dividend yield benefits in rising rate environments as fixed reset issues reset at higher 5yr Government of Canada yields
Opportunistic approach allowing Fiera to find relative value within the capital structure, particularly in Hybrids, LRCNs and preferred shares.
Enhanced portfolio diversification when combined with other fixed income asset class
Significant tax efficiency benefits for taxable clients
Managed by Fiera’s Integrated Fixed Income team, one of Canada’s largest preferred share managers, within their broader fixed income platform

Highlights

								Inception Date
								February 1, 2004
							

								Assets Under Management ($M)
								$1,334 (As of March 31, 2026)
							

								Style
								Active management, focus on fundamental relative value
							

								Process
								Combination of top-down and bottom-up
							

								Expected sources of added value
								Mainly security selection
							

								Turnover
								Low
							

								Investment Horizon
								3-5 years
							

								Holdings (number of issuers)
								35-45
							

Performance

Annual Performance

	Q1 2026	YTD - 2026	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
Preferred Shares Universe Composite	0.86	0.86	18.19	28.90	8.41	-18.63	25.57	6.85	2.87	-9.32	16.15	9.53
S&P/TSX Preferred Share Index	0.35	0.35	16.03	24.70	5.90	-18.08	19.35	6.16	3.48	-7.93	13.62	6.98
Value Added	0.51	0.51	2.16	4.20	2.51	-0.55	6.22	0.69	-0.61	-1.39	2.53	2.55

Q1 2026
	%
Preferred Shares Universe Composite	0.86
S&P/TSX Preferred Share Index	0.35
Value Added	0.51

YTD - 0
	%
Preferred Shares Universe Composite	0.86
S&P/TSX Preferred Share Index	0.35
Value Added	0.51

2025
	%
Preferred Shares Universe Composite	18.19
S&P/TSX Preferred Share Index	16.03
Value Added	2.16

2024
	%
Preferred Shares Universe Composite	28.90
S&P/TSX Preferred Share Index	24.70
Value Added	4.20

2023
	%
Preferred Shares Universe Composite	8.41
S&P/TSX Preferred Share Index	5.90
Value Added	2.51

2022
	%
Preferred Shares Universe Composite	-18.63
S&P/TSX Preferred Share Index	-18.08
Value Added	-0.55

2021
	%
Preferred Shares Universe Composite	25.57
S&P/TSX Preferred Share Index	19.35
Value Added	6.22

2020
	%
Preferred Shares Universe Composite	6.85
S&P/TSX Preferred Share Index	6.16
Value Added	0.69

2019
	%
Preferred Shares Universe Composite	2.87
S&P/TSX Preferred Share Index	3.48
Value Added	-0.61

2018
	%
Preferred Shares Universe Composite	-9.32
S&P/TSX Preferred Share Index	-7.93
Value Added	-1.39

2017
	%
Preferred Shares Universe Composite	16.15
S&P/TSX Preferred Share Index	13.62
Value Added	2.53

2016
	%
Preferred Shares Universe Composite	9.53
S&P/TSX Preferred Share Index	6.98
Value Added	2.55

Annualized as at March 31, 2026

	1 Y	2 Y	3 Y	4 Y	5 Y	6 Y	7 Y	8 Y	9 Y	10 Y	SI
Preferred Shares Universe Composite	16.41	16.90	17.58	8.59	8.80	15.87	9.34	6.79	6.86	8.46	4.71
S&P/TSX Preferred Share Index	13.50	15.09	14.56	6.62	6.67	12.87	7.26	5.40	5.41	6.95	3.63
Value Added	2.91	1.81	3.02	1.97	2.13	3.00	2.08	1.39	1.45	1.51	1.08

1 Y
	%
Preferred Shares Universe Composite	16.41
S&P/TSX Preferred Share Index	13.50
Value Added	2.91

2 Y
	%
Preferred Shares Universe Composite	16.90
S&P/TSX Preferred Share Index	15.09
Value Added	1.81

3 Y
	%
Preferred Shares Universe Composite	17.58
S&P/TSX Preferred Share Index	14.56
Value Added	3.02

4 Y
	%
Preferred Shares Universe Composite	8.59
S&P/TSX Preferred Share Index	6.62
Value Added	1.97

5 Y
	%
Preferred Shares Universe Composite	8.80
S&P/TSX Preferred Share Index	6.67
Value Added	2.13

6 Y
	%
Preferred Shares Universe Composite	15.87
S&P/TSX Preferred Share Index	12.87
Value Added	3.00

7 Y
	%
Preferred Shares Universe Composite	9.34
S&P/TSX Preferred Share Index	7.26
Value Added	2.08

8 Y
	%
Preferred Shares Universe Composite	6.79
S&P/TSX Preferred Share Index	5.40
Value Added	1.39

9 Y
	%
Preferred Shares Universe Composite	6.86
S&P/TSX Preferred Share Index	5.41
Value Added	1.45

10 Y
	%
Preferred Shares Universe Composite	8.46
S&P/TSX Preferred Share Index	6.95
Value Added	1.51

SI
	%
Preferred Shares Universe Composite	4.71
S&P/TSX Preferred Share Index	3.63
Value Added	1.08

Past performance is not a guarantee or indicator of future results. Inherent in any investment is the risk of loss.

Composite performance, gross of management fees.

Performance returns are annualized for periods of 1 year and up.

Investment Team

Nicolas Normandeau MSc, CFA

Portfolio Manager, Fixed Income

Montreal

View profile

He is supported by the Integrated Fixed Income team, which include Philippe Ouellette, MSc, CFA, Jeff Seaver, CFA., Jasper Beerepoot, MBA, Charles Grenier MSc, CFA, and by two analysts.

Documents

Strategy Profile

Disclaimer

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Past performance is not a guarantee of future results. Inherent in any investment is the potential for loss. Target returns are aspirational, forward-looking and do not represent actual performance. There is no guarantee that such performance will be achieved, and actual results may vary substantially. Metrics (e.g., exposures, ratios, characteristics) are for reference only and may not capture all relevant factors. Different metrics may lead to materially different conclusions; Any specific holdings mentioned are for illustration only, and may not represent the full portfolio, past holdings, or future positions. Indices are unmanaged, not investable, and do not reflect fees or expenses. Index comparisons are provided for context and portfolio holdings may differ significantly from those of any index; All investment strategies involve risks, including market, economic, financial, operational, liquidity, valuation, and regulatory risks. Certain strategies may use leverage, derivatives, or concentrated exposures, which can increase volatility and risk of loss; No strategy, diversification approach, or risk management technique can eliminate risk, or guarantee returns in all market environments; Investors should review relevant governing documents and consult their own advisers before making investment decisions.

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