Fiera Capital Corp T.FSZ

Alternate Symbol(s): FRRPF | T.FSZ.DB.B

Financial Services Asset Management

Fiera Capital Corporation is a Canada-based independent asset management company. The Company 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 Asia. It offers a range of traditional and non-traditional investment strategies through specialized and balanced mandates. It works with endowments, foundations, corporations, private and public funds and Taft-Hartley plans. Its institutional solutions include fixed income, equity and non-traditional. Its fixed income solutions include Canadian Active, Canadian Credit, Core Plus, Infrastructure Debt and North American High Yield. The Company's portfolio managers work directly with clients and their financial intermediaries, attorneys and accountants to design custom portfolios. Its private markets solution categories include real estate, infrastructure, agriculture, private equity and private credit.

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Fiera Capital Corp

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Post by retiredcfon Jan 27, 2021 2:38pm

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More RBC Notes

It's time for the good times, forget about the bad times, oh yeah? Q1/21 Canadian Asset Manager Scorecard

Our quarterly Canadian Asset Manager Scorecard seeks to answer many of the questions we get asked by investors regarding fundco-specific and industry level performance (e.g., sector thesis, best idea, net sales performance, investment performance, sector valuations, ETF growth, etc.). Key takeaways:

Sector outlook: As noted in our 2021 Sector Outlook, we think investors should put the asset/ wealth management sector back on the radar screen as we have a more positive outlook toward the sector after a ~5-year period when we believe there was reduced investor interest in the sector owing to increased regulatory risk; significant fee pressure; and often weak industry net sales. Our more positive outlook reflects improving industry net sales; benign regulatory risks; reduced fee pressure; company-specific catalysts and attractive dividend yields (and P/E multiples in some cases). While we think it’s too early to go overweight the sector, we think having some exposure to the sector is appropriate to participate should industry conditions continue to improve.
Fiera Capital is the only Outperform rated stock within our asset manager coverage and is one of our “sleeper” ideas for 2021. We think Fiera has the potential to deliver one the highest total returns within our coverage should it demonstrate consistent net sales and sustainable EBITDA margins >30%. IGM arguably still has the best fundamentals and Mackenzie’s net sales continue to impress, but we think consistent positive monthly net sales at IG Wealth is key to share price outperformance. We think CIX has potentially significant valuation upside (lowest P/E multiple vs. peers; attractive growth from RIA growth-by-acquisition; cost savings from merging investment teams), but net redemptions remain significant and overall fund performance remains below average. SII trades at a premium valuation multiple vs. peers, which appears warranted, but we think gold prices need a significant rally for SII to outperform again this year. AGF.b is close to returning to positive net sales, but we think the near- term focus is how it redeploys its significant cash resources to create shareholder value.