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Fiera Capital to grow its Liability-Driven Investment suite of strategies and play a leading role in the Canadian insurance-focused segment
MONTREAL, May 15, 2019 /CNW Telbec/ - Fiera Capital Corporation ("Fiera Capital") (TSX: FSZ) announced today that it has reached an agreement with Foresters Life Insurance Company ("Foresters Financial") whereby Fiera Capital will acquire all of the outstanding shares of Foresters Asset Management Inc. ("Foresters Asset Management"), a wholly owned subsidiary of Foresters Financial. Foresters Asset Management is an Ontario-based investment management firm focused on institutional and insurance liability-driven investment ("LDI") with approximately $10.5 billion in assets under management ("AUM") as of April 30, 2019. Following closing of the transaction, Fiera Capital's total liability-driven investment ("LDI") AUM will exceed $25 billion.
"The combination of Foresters Asset Management with Fiera Capital will enhance our leading Canadian institutional fixed income and LDI capabilities. This transaction will provide Fiera Capital with an opportunity to broaden its relationships with Foresters Financial and its clients, in addition to being a financially attractive endeavour," said Jean-Philippe Lemay, President and Chief Operating Officer of Fiera Capital's Canadian Division. "We are excited to partner with Foresters Asset Management's clients to provide leading-edge solutions to achieve their financial, regulatory and capital objectives. For Fiera Capital, LDI is a framework for solutions to which we bring a multi-asset reach in a holistic, yet customized, risk management approach that extends beyond fixed income alone".
"Fiera Capital has an experienced management team and a strong track record of performance – the combination of which will provide robust investment solutions to Foresters Asset Management clients, including access to enhanced fixed income, equity and private market strategies," said Jim Boyle, President and Chief Executive Officer of Foresters Financial.
Following closing of the transaction, Fiera Capital will be incorporating the Foresters Asset Management business into its existing Canadian operations, such that Fiera Capital will become manager and portfolio manager of the Foresters Asset Management managed funds. Certain Foresters Asset Management portfolio managers will remain with Fiera Capital following closing of the transaction. The transaction is expected to be modestly accretive (mid-single digit) to adjusted EPS within the first full year post closing and is expected to close in Q3 2019, subject to the approval of unitholders of the Foresters Asset Management managed funds as well as regulatory approval. Details about the change of manager of the Foresters Asset Management managed funds will be contained in meeting materials to be mailed to unitholders of such funds. The terms of the transaction are not disclosed.
This announcement contains forward-looking statements. These statements relate to future events and reflect management's expectations or beliefs regarding such future events, based on information currently available to management. In some cases, forward-looking statements can be identified by terminology such as "may", "will", "plans", "believes", "expects", "aims", "intends", "anticipates", "estimates", "projects" or words or terms of similar substance or the negative thereof.
With respect to management expectations regarding accretion resulting from this transaction in 2019, financial performance is based on information available to management and certain assumptions, including the accuracy of Foresters Asset Management's financial statements, the level of Foresters Asset Management assets under management retained following the acquisition, as well as assumptions regarding the growth in Foresters Asset Management assets under management and realization of synergies. Actual results could differ depending on a number of factors, including the ability to retain key personnel following the acquisition, the ability to retain clients and assets under management following the acquisition and general market conditions.
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 and annual consolidated financial statements, and its Annual Report and Annual Information Form filed on 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$144.9 billion in assets under management as of March 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 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 Foresters Financial
Since 1874, Foresters Financial has been providing socially responsible financial services to individuals and families. Foresters Financial includes The Independent Order of Foresters, the oldest non-denominational fraternal benefit society. Foresters is a purpose-driven organization that exists to enrich family and community well-being and offers insurance products to over three million members and clients in Canada, the US and the U.K. For 18 straight years, The Independent Order of Foresters has received an "A" (Excellent) rating from A.M. Best.1 For more information please visit foresters.com
1. The A.M. Best rating assigned on August 2, 2018 reflects the overall strength and claims-paying ability of The Independent Order of Foresters (IOF) but does not apply to the performance of any non-IOF issued products. An "A" (Excellent) rating is assigned to companies that have a strong ability to meet their ongoing obligations to policyholders and have, on balance, excellent balance sheet strength, operating performance and business profile when compared to the standards established by A.M. Best Company. A.M. Best assigns ratings from A++ to F, A++ and A+ being superior ratings and A and A- being excellent ratings. See ambest.com for our latest rating.
SOURCE Fiera Capital Corporation