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Fiera Capital celebrates third anniversary of OAKS EM Select Strategy

09 January 2024

Fiera Capital Celebrates Third Anniversary of Fiera OAKS EM Select as Small Emerging Market Strategy Outperforms the Market

  • Three-year anniversary of Fiera Capital’s OAKS EM Select Strategy co-managed by industry veterans Dominic Bokor-Ingram and Stefan Böttcher.
  • Fiera OAKS EM Select Strategy outperformed 99% of its peers in 2023 according to Bloomberg data.[1]
  • Strategy has beat the MSCI Emerging Markets Index on both a gross and net basis since its inception in January 2021.[2]
  • The management team seeded the Strategy, which has now grown to US$140 million as at 30th September 2023.

9th January 2024, London - Fiera Capital, (“Fiera”) an independent global asset manager with US$114.9 billion under management across both public and private market strategies as at 30th September 2023, has marked the three-year anniversary of its OAKS EM Select Strategy (the “Strategy”) managed by emerging market veterans Stefan Böttcher and Dominic Bokor-Ingram.

Since its inception on 6th January 2021, the Strategy has outperformed the MSCI Emerging Markets Index on both a gross and net basis, which captures large and mid-cap representation across 24 Emerging Markets (“EM”) countries. The Strategy has also beaten 99% of its peer group in 2022 – 2023, which management attributes to selective stock-picking of EM securities across lesser-traded developing-nation exchanges, including Saudi Arabia, Greece, Vietnam, Mexico, Indonesia, and the Philippines.

The Fiera OAKS EM Select Strategy invests in a diversified portfolio of smaller EM securities seeking absolute returns. The Strategy leverages a proprietary valuation method to identify and exploit inefficiencies across under-researched and under-owned smaller listed stocks, targeting cashflow-positive companies that we believe can generate attractive returns on invested capital where minority shareholders could potentially benefit from sustainable earnings growth.

Dominic and Stefan, who seeded the Strategy on launch, draw on 30 years of experience across EM investment positions at Goldman Sachs, Morgan Stanley, Schroders, and EM specialist Renaissance Capital. Both managers, and the Strategy itself, are Citywire AAA-rated.

“We’ve exceeded expectations and we’re not short of runway for further growth,” says Bokor-Ingram. “Because we’re not mandated to carry exposure to any one geography, our opportunity set is as broad as 19,700 listed equities across 78 stock markets, taking special interest in countries that are actively pursuing economic reform or where a ‘catch-up’ process of divestment is driving alpha among markets where stocks are inappropriately valued.

“It seems simple, but companies growing strongly in economies that are growing strongly will exhibit the greatest mispricing.”

Smaller EM and frontier markets are foundational to global supply chains, but historic indexation has fostered a situation where the largest six markets that dominated the EM countries continue to do so. [3] For example, global indexes still carry an average of 2% exposure to Saudi Arabia despite 8% GDP growth in 2022. “Alternative EM strategies are typically weighted to emerging markets that are emerging by name but not by nature,” comments Böttcher. “This is where there is a dislocation between perception and reality. Investors are overlooking opportunities beyond major markets where political and financial reform programmes are driving economic and company growth simultaneously, and where previously dampened sectors are now supported by renewed secular trends.

“Of course, we’ll exclude some geographies where there is too much political or economic instability. But in this wide pool of commonly underestimated equities, there are companies that are severely undervalued.” 

Fiera OAKS EM Select Strategy continues to seek strong, risk-adjusted returns while adhering to a rigorous bottom-up, fundamental investment philosophy, supported by Fiera Capital’s independence of perspective. “We have complete control over the investment process while still drawing on Fiera Capital’s global platform, which provides the infrastructure and risk management capabilities we need to distinguish our offer,” says Bokor-Ingram.

 

ENDS

 

About Fiera Capital Corporation

Fiera Capital is a leading independent asset management firm with a growing global presence and approximately US$114.9 billion in assets under management as at 30th September 2023. Fiera Capital delivers customized and multi-asset solutions across public and private market asset classes to institutional, financial intermediary and private wealth clients across North America, Europe and key markets in Asia. Fiera Capital’s depth of expertise, diversified investment platform and commitment to delivering outstanding service are core to our mission of being at the forefront of the investment management science to foster sustainable prosperity for all our stakeholders. Fiera Capital trades under the ticker FSZ on the Toronto Stock Exchange. www.fieracapital.com (opens in new window)

Headquartered in Montreal, Fiera Capital, with its affiliates in various jurisdictions, has offices in over a dozen cities around the world, including New York (U.S.), London (UK), and Hong Kong (SAR).

Each affiliated entity (each an “Affiliate”) of Fiera Capital only provides investment advisory or investment management services or offers investment funds in the jurisdictions where the Affiliate and/or the relevant product is registered or authorized to provide services pursuant to an exemption from registration.

In the U.S., asset management services are provided by Fiera Capital’s Affiliates who are investment advisers that are registered with the U.S. Securities and Exchange Commission (SEC) or exempt from registration. 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 (opens in new window).

Additional information about Fiera Capital, including Fiera Capital’s annual information form, is available on SEDAR at www.sedar.com (opens in new window).

Disclaimer

Fiera Capital Corporation (“Fiera Capital”) is a global independent asset management firm that delivers customized multi-asset solutions across traditional and alternative asset classes to institutional, retail and private wealth clients across North America, Europe and key markets in Asia. Fiera Capital trades under the ticker FSZ on the Toronto Stock Exchange. Each affiliated entity (each an “Affiliate”) of Fiera Capital only provides investment advisory or investment management services or offers investment funds in the jurisdictions where the Affiliate and/or the relevant product is registered or authorized to provide services pursuant to an exemption from registration. This document is strictly confidential and for discussion purposes only. Its contents must not be disclosed or redistributed directly or indirectly, to any party other than the person to whom it has been delivered and that person’s professional advisers. The information presented in this document, in whole or in part, is not investment, tax, legal or other advice, nor does it consider the investment objectives or financial circumstances of any investor. Fiera Capital and its Affiliates reasonably believe that this document contains accurate information as at the date of publication; however, no representation is made that the information is accurate or complete and it may not be relied upon. Fiera Capital and its Affiliates will accept no liability arising from the use of this document. Fiera Capital and its Affiliates do not make recommendations to buy or sell securities or investments in marketing materials. Dealing and/or advising services are only offered to qualified investors pursuant to applicable securities laws in each jurisdiction. Past performance of any fund, strategy or investment is not an indication or guarantee of future results. Performance information assumes the reinvestment of all investment income and distributions and does not account for any fees or income taxes paid by the investor. All investments have the potential for loss. Target returns are forward-looking, do not represent actual performance, there is no guarantee that such performance will be achieved, and actual results may vary substantially. This document may contain “forward-looking statements” which reflect the current expectations of Fiera Capital and/or its Affiliates. These statements reflect current beliefs, expectations and assumptions with respect to future events and are based on information currently available. Although based upon what Fiera Capital and its affiliates believe to be reasonable assumptions, there is no guarantee that actual results, performance, or achievements will be consistent with these forward-looking statements. There is no obligation for Fiera Capital and/or its Affiliates to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise. Strategy data such as ratios and other measures which may be presented herein are for reference only and may be used by prospective investors to evaluate and compare the strategy. Other metrics are available and should be considered prior to investment as those provided herein are the subjective choice of the manager. The weighting of such subjective factors in a different manner would likely lead to different conclusions. Strategy details, including holdings and exposure data, as well as other characteristics, are as of the date noted and subject to change. Specific holdings identified are not representative of all holdings and it should not be assumed that the holdings identified were or will be profitable. Certain fund or strategy performance and characteristics may be compared with those of well-known and widely recognized indices. Holdings may differ significantly from the securities that comprise the representative index. It is not possible to invest directly in an index. Investors pursuing a strategy like an index may experience higher or lower returns and will bear the cost of fees and expenses that will reduce returns, whereas an index does not. Generally, an index that is used to compare performance of a fund or strategy, as applicable, is the closest aligned regarding composition, volatility, or other factors. Every investment is subject to various risks and such risks should be carefully considered by prospective investors before they make any investment decision. No investment strategy or risk management technique can guarantee returns or eliminate risk in every market environment. Each investor should read all related constating documents and/or consult their own advisors as to legal, tax, accounting, regulatory, and related matters prior to making an investment. The ESG or impact goals, commitments, incentives and initiatives outlined in this document are purely voluntary, may have limited impact on investment decisions and/or the management of investments and do not constitute a guarantee, promise or commitment regarding actual or potential positive impacts or outcomes associated with investments made by funds managed by the firm. The firm has established, and may in the future establish, certain ESG or impact goals, commitments, incentives and initiatives, including but not limited to those relating to diversity, equity and inclusion and greenhouse gas emissions reductions. Any ESG or impact goals, commitments, incentives and initiatives referenced in any information, reporting or disclosures published by the firm are not being promoted and do not bind any investment decisions made in respect of, or stewardship of, any funds managed by the firm for the purposes of Article 8 of Regulation (EU) 2019/2088 on sustainability-related disclosures, in the financial services sector. Any measures implemented in respect of such ESG or impact goals, commitments, incentives and initiatives may not be immediately applicable to the investments of any funds managed by the firm and any implementation can be overridden or ignored at the sole discretion of the firm. There can be no assurance that ESG policies and procedures as described herein, including policies and procedures related to responsible investment or the application of ESG-related criteria or reviews to the investment process will continue; such policies and procedures could change, even materially, or may not be applied to a particular investment. United Kingdom: This document is issued by Fiera Capital (UK) Limited, an affiliate of Fiera Capital Corporation, which is authorized and regulated by the Financial Conduct Authority. Fiera Capital (UK) Limited is registered with the US Securities and Exchange Commission (“SEC”) as investment adviser. Registration with the SEC does not imply a certain level of skill or training. United Kingdom – Fiera Real Estate UK: This document is issued by Fiera Real Estate Investors UK Limited, an affiliate of Fiera Capital Corporation, which is authorized and regulated by the Financial Conduct Authority. European Economic Area (EEA): This document is issued by Fiera Capital (Germany) GmbH (“Fiera Germany”), an affiliate of Fiera Capital Corporation, which is authorized and regulated by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin). United States: This document is issued by Fiera Capital Inc. (“Fiera U.S.A.”), an affiliate of Fiera Capital Corporation. Fiera U.S.A. is an investment adviser based in New York City registered with the Securities and Exchange Commission (“SEC”). Registration with the SEC does not imply a certain level of skill or training. United States - Fiera Infrastructure: This document is issued by Fiera Infrastructure Inc. (“Fiera Infrastructure”), an affiliate of Fiera Capital Corporation. Fiera Infrastructure is registered as an exempt reporting adviser with the Securities and Exchange Commission (“SEC”). Registration with the SEC does not imply a certain level of skill or training. Canada Fiera Real Estate Investments Limited (“Fiera Real Estate”), a wholly owned subsidiary of Fiera Capital Corporation is an investment manager of real estate through a range of investments funds. Fiera Infrastructure Inc. (“Fiera Infra”), a subsidiary of Fiera Capital Corporation is a leading global midmarket direct infrastructure investor operating across all subsectors of the infrastructure asset class. Fiera Comox Partners Inc. (“Fiera Comox”), a subsidiary of Fiera Capital Corporation is a global investment manager that manages private alternative strategies in Private Credit, Agriculture and Private Equity. Fiera Private Debt Inc. (“Fiera Private Debt”), a subsidiary of Fiera Capital Corporation provides innovative investment solutions to a wide range of investors through two distinct private debt strategies: corporate debt and infrastructure debt. Please find an overview of registrations of Fiera Capital Corporation and certain of its subsidiaries here: https://www.fieracapital.com/en/registrationsand-exemptions

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[1] https://www.bloomberg.com/news/articles/2023-07-31/doubling-down-on-saudi-stocks-helps-em-fund-manager-beat-peers?leadSource=uverify%20wall

[2] https://www.msci.com/documents/10199/c0db0a48-01f2-4ba9-ad01-226fd5678111

[3] https://www.msci.com/documents/10199/536c9f92-3f0c-475c-a349-469770dfa529

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