Fiera Capital Corporation Announces Sale of Fiera Capital's Retail Mutual Funds to Canoe Financial LP

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

MONTREAL, Oct. 23, 2018 /CNW Telbec/ - Fiera Capital Corporation (TSX: FSZ) ("Fiera Capital" or the "Company") today announced that it has reached an agreement with Canoe Financial LP ("Canoe"), a Canadian mutual fund company with over C$4.8 billion in assets across a diversified range of award-winning mutual funds and private energy equity products, pursuant to which Canoe has agreed to acquire the rights to manage the nine following retail mutual funds (collectively referred to as the "Fiera Capital Mutual Funds"):

  • Fiera Capital Diversified Bond Fund
  • Fiera Capital Income and Growth Fund
  • Fiera Capital High Income Fund
  • Fiera Capital Core Canadian Equity Fund
  • Fiera Capital Equity Growth Fund
  • Fiera Capital U.S. Equity Fund
  • Fiera Capital Global Equity Fund
  • Fiera Capital International Equity Fund
  • Fiera Capital Defensive Global Equity Fund

Fiera Capital will continue to manage its Canadian closed-end funds as well as its alternative strategies including the following funds:

  • Fiera Active Trading Fund
  • Fiera Long/Short Equity Fund
  • Fiera Market Neutral Equity Fund
  • Fiera Capital Income Opportunities Fund

As part of the agreement, Canoe has agreed to retain Fiera Capital to act as sub-advisor for Fiera Capital Global Equity Fund, Fiera Capital Defensive Global Equity Fund, Fiera Capital International Equity Fund, and Fiera Capital Equity Growth Fund. There will be no change in the current portfolio management team for these four funds. The transaction is expected to close during Q1 2019 and is subject to among other matters, receiving all necessary unitholder and regulatory approvals, as well as satisfying other customary conditions of closing.

"This transaction will allow Fiera Capital to focus on its core strengths serving institutional markets and private wealth clients, as well as sub-advisory via strategic partnerships," commented Jean-Phillippe Lemay, President and COO of Fiera Capital's Canadian Division. "Fiera Capital subadvisory relationships, totalling close to $35B in AUM, will be further enhanced by the new partnership with Canoe Financial,'' he added.

Upon completion of the Proposed Transaction and subject to receipt of all necessary approvals, Canoe will become the trustee, manager and portfolio manager of the Fiera Capital Mutual Funds and all funds will undergo a name change to continue under the Canoe banner.

Unitholders of the relevant Fiera Capital Mutual Funds will be asked to approve the change of manager-trustee, and certain amendments to the master declaration of trust at special meetings. In addition, unitholders of certain Fiera Capital Mutual Funds will be asked to approve a merger into mutual funds managed by Canoe, while unitholders of certain other Fiera Capital Mutual Funds will be asked to approve the adoption of the form of master declaration of trust used by the Canoe mutual funds and replace the method in which certain operating expenses are charged to such Fiera Capital Mutual Fund with a fixed-rate administration fee.

Details about the changes will be contained in the meeting materials to be mailed to unitholders. Fiera Capital will refer the Proposed Transaction to the Independent Review Committee (the "IRC") of the Fiera Capital Mutual Funds, which acts in an advisory capacity representing the interests of the funds and unitholders with respect to conflict of interests matters. The IRC will be asked to review the proposals and determine that, if implemented, each proposal would achieve a fair and reasonable result for the Fiera Capital Mutual Funds.

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

 

Fiera Capital Mutual Funds

Proposed Material Changes

Fiera Capital Global Equity Fund
(to be renamed Canoe Global Equity Fund)

  • Change of trustee, investment fund manager and portfolio manager
  • Appointment of Fiera Capital as sub-adviser to Canoe
  • Amendment and restatement of the master declaration of trust
  • Adoption of a fixed administration fee

Fiera Capital Defensive Global Equity Fund
(to be renamed Canoe Defensive Global Equity Fund)

  • Change of trustee, investment fund manager and portfolio manager
  • Appointment of Fiera Capital as sub-adviser to Canoe
  • Amendment and restatement of the master declaration of trust
  • Adoption of a fixed administration fee

Fiera Capital International Equity Fund
(to be renamed Canoe International Equity Fund)

  • Change of trustee, investment fund manager and portfolio manager
  • Appointment of Fiera Capital as sub-adviser to Canoe
  • Amendment and restatement of the master declaration of trust
  • Adoption of a fixed administration fee

Fiera Capital Equity Growth Fund
(to be renamed Canoe Canadian Small Mid Cap Fund)

  • Change of trustee, investment fund manager and portfolio manager
  • Appointment of Fiera Capital as sub-adviser to Canoe
  • Amendment and restatement of the master declaration of trust
  • Adoption of a fixed administration fee

Fiera Capital Diversified Bond Fund
(to be renamed Canoe Diversified Bond Fund)

  • Change of trustee, investment fund manager and portfolio manager
  • Merger into Canoe Bond Advantage Fund

Fiera Capital High Income Fund
(to be renamed Canoe High Income Fund)

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

Fiera Capital Core Canadian Equity Fund
(to be renamed Canoe Core Canadian Equity Fund)

  • Change of trustee, investment fund manager and portfolio manager
  • Merger into Canoe Equity Portfolio Class

Fiera Capital U.S. Equity Fund
(to be renamed Canoe U.S. Equity Fund)

  • Change of trustee, investment fund manager and portfolio manager
  • Merger into Canoe U.S. Equity Income Portfolio Class

Fiera Capital Income and Growth Fund
(to be renamed Canoe Income and Growth Fund)

  • Change of trustee, investment fund manager and portfolio manager
  • Merger into Canoe Asset Allocation Portfolio Class

 

It is anticipated that certain investors in the Fiera Capital Mutual Funds that have a relationship with Fiera Capital will redeem their units in the funds on or about the closing date of the Proposed Transaction. Fiera Capital and Canoe are working on ways to minimize the negative impacts of such redemptions on the Fiera Capital Mutual Funds. As part of the transaction, Canoe has also agreed to acquire Fiera Capital's ownership interest in Fiera Capital Funds Inc., Fiera Capital's wholly owned subsidiary and registered mutual fund dealer.

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 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", "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$143.5 billion in assets under management as of September 30, 2018. 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 Firm'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.

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

About Canoe Financial

Canoe is one of Canada's fastest growing independent mutual fund companies managing over $4.8 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 has offices in Calgary, Toronto, Vancouver, Winnipeg and Montreal.

 

SOURCE Fiera Capital Corporation