Montreal-based Fiera Capital Corp. announced Tuesday that Calgary-based Canoe Financial LP has agreed to acquire the rights to manage nine Fiera retail mutual funds.
Canoe will also acquire Fiera Capital’s ownership interest in Fiera Capital Funds Inc., Fiera’s wholly owned subsidiary and registered mutual fund dealer.
Upon completion of the transaction and subject to regulatory and unitholder approval, Canoe will become the trustee, manager and portfolio manager of nine funds, all of which will undergo a name change to continue under the Canoe banner:
- 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
As part of the proposed agreement, Canoe will retain Fiera Capital to act as sub-advisor for four funds: Fiera Capital Global Equity Fund, Fiera Capital Defensive Global Equity Fund, Fiera Capital International Equity Fund, and Fiera Capital Equity Growth Fund. As such, there will be no change in the portfolio management team for these funds.
Fiera Capital will continue to manage its Canadian closed-end funds as well as its alternative strategies, including:
- Fiera Active Trading Fund
- Fiera Long/Short Equity Fund
- Fiera Market Neutral Equity Fund
- Fiera Capital Income Opportunities Fund
The transaction is expected to close during Q1 2019, and “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,” Jean-Phillippe Lemay, president and chief operating officer of Fiera’s Canadian division, says in a statement.
Separately, Fiera also announced Lucas Pontillo has been appointed to executive vice president and global chief financial officer (CFO). Prior to joining Fiera, Pontillo was chief operating officer for Manulife Asset Management Canada.
Pontillo will take over from John Valentini, who has moved to a position as president and chief executive officer for Fiera’s private alternative investments division.
The global CFO role had initially been offered to Donald LeCavalier, who later turned it down to continue at Montreal-based Transcontinental Inc. (the parent company of Investment Executive).