MONTRÉAL, Oct. 19, 2016 /CNW Telbec/ - Fiera Capital Corporation ("Fiera Capital"), as manager of the Fiera Capital QSSP II Investment Fund Inc (the "Fund"), announced, following the non-renewal by the Québec Government of the Québec Stock Savings Plan II ("QSSP II Plan") established under the Taxation Act (Québec) (the "Non-renewal of the QSSP II Plan"), a proposal to amend the articles of the Fund to include a right of redemption of class A shares, exercisable by the Fund (the "Amendment").
Fund objective maintained
Following the Non-renewal of the QSSP II Plan, the Fund's Board of Directors and Fiera Capital conducted a comprehensive review of the consequences of the Non-renewal of the QSSP II Plan and concluded that they are able to pursue the objective of the Fund despite the Non-renewal of the QSSP II Plan. The Non-renewal of the QSSP II Plan prevents the Fund from issuing new shares which are eligible for the QSSP II Plan since future shareholders of the Fund will no longer benefit from a tax deduction for Québec income tax purposes. This measure, however, has no retroactive effect so that the holders of shares issued by the Fund prior to December 31st, 2014, are not affected in their right to claim a tax deduction related to their holdings of Fund shares.
Addition of a right of redemption
However, upon examination, it was found that the Fund, in contrast to the common practice for mutual funds, does not benefit from a right of redemption of its shares under its statutes or applicable regulations. Ultimately, the absence of the right of redemption could complicate the closure of the Fund and unduly extend the Fund's dissolution procedures under the Fund's incorporating act (e.g. the Canada Business Corporations Act).
Due to the Non-renewal of the QSSP II Plan, the addition of a right of redemption by the Fund of any Class A share, exercisable by the Fund, will provide the manager and the Fund the flexibility required to establish and, if deemed appropriate, implement any measures which would prove appropriate or necessary and in the best interest of shareholders, including the possible termination of the Fund.
The Amendment is subject to approval of the Fund's shareholders. A special meeting of Class A shareholders of all series of the Fund has been designated for this purpose on December 8th, 2016.
Fiera Capital submitted the Amendment to the Fund's Independent Review Committee (the "IRC") in order to obtain its recommendation. The IRC reviewed the proposal presented and, after a thorough investigation, the IRC issued, at a meeting held on October 19th, 2016, positive recommendation.
About Fiera Capital Corporation
Fiera Capital Corporation is a leading North American independent asset management firm with over CAD$109 billion in assets under management as at June 30, 2016. 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 portfolios have benefit from Fiera Capital's depth of expertise, diversified offerings and outstanding client 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 its U.S. affiliates, Bel Air Investment Advisors LLC and Fiera Capital Inc., which are investment advisers registered with the U.S. Securities and Exchange Commission (the "SEC"). Registration with the SEC does not imply a certain level of skill or training. Additional information relating to the Firm, including the Firm's annual information form, is available on SEDAR at www.sedar.com.
SOURCE Fiera Capital Corporation