• Fiera Capital announces popular SMID Cap Growth strategy available in Asia, reflecting strong demand for US equities
• The US$6.1 billion strategy has a 23-year track record of outperforming the Russell 2500 Growth Index
• The launch of the SMID Cap Growth Strategy to Asia underscores the Company’s ongoing commitment to bringing diversified investment opportunities that meet its criteria of long-term, steady, and financially sustainable alpha generation.

 

TOKYO, 9^th July 2024 – Fiera Capital (“Fiera Capital” or “the Company”), a leading independent global asset management firm with over US$122.1 billion under management as at 31^st March 2024, has announced the launch of its “all-seasons” Small-to-Mid (SMID) Cap Growth strategy to Asian institutional and wholesale investors.

Expanding the offering reflects growing demand across Asian markets for exposure to high-growth US equities and the opportunity set beyond the S&P 500.

At its core, Fiera Capital’s SMID Cap Growth strategy seeks to deliver significant capital appreciation across multiple market cycles, providing clients with stability during market downturns. The portfolio typically holds 60 to 90 positions and consists of companies in the fertile US small and mid cap equity universe which includes a wide variety of developing and mature businesses to choose from.

With a track-record of over 23 years, the US$6.1 billion fund has returned 24.61 percent over 12 months and 15.25 percent over three years (as at 31^st March 2024), delivering significant outperformance versus its Russell 2500 Growth Index benchmark, providing some downside protection and reduced volatility.

“The market tends to underestimate the longer-term opportunity posed by small to mid-size companies,” said Lead Portfolio Manager, Sunil Reddy. “US small and mid-caps represent an excellent opportunity for investors seeking exposure to dynamic US companies beyond the highly-subscribed and analysed large cap market. Our rigorous research process and proven portfolio management team enable us to identify standout companies that are positioned for growth and pose attractive risk return levels across.”

The investment team combines bottom-up fundamental stock selection with top-down global secular trend tracing to seek out companies positioned for strong growth that boast resilient characteristics. “This recipe is what makes our portfolio a prime candidate for investors looking for superior risk-adjusted returns across all-seasons,” added Reddy. “It’s also what we believe sits behind our higher batting average as we continue to outperform our benchmark.”

Through in-depth analysis the seven-strong team identifies companies that provide innovative solutions to major technological, economic, demographic, regulatory, or societal change. Secular themes such as cloud computing, e-commerce, AI and advances in therapeutics form a tailwind for these companies, carving a path for their ongoing growth.

The managers balance growth and risk management by constructing a dynamic mix of stable and emerging growth companies within the portfolio. Stable growth companies exhibit persistent returns and consistent EPS growth while emerging growth companies are characterised by disruptive innovation, explosive revenue growth and have a large addressable market paired with low penetration.

Commenting on the investment philosophy, Reddy said, “We believe the key to creating long-term  alpha is a disciplined, consistent and repeatable process. We have honed our process and proven its effectiveness in multiple economic cycles over the past 20 years.”

“Almost a third of the companies in the index don’t have any earnings so a passive approach just doesn’t work when it comes to the small and mid-cap market. Our highly active approach is what allows us to identify and avoid these zombie companies and a lot of idiosyncratic risk unique to the smaller end of the market. More than 85% of our alpha comes from the team’s stock picking.”

The launch of the SMID Cap Growth strategy adds to Fiera Capital’s comprehensive suite of products covering public markets, underscoring the Company’s ongoing commitment to bringing long-term investors high quality, actively managed products and services.

“In recent years, US equities have been a growth powerhouse,” said Rob Petty, Asia CEO, “however the small to mid-cap segment remains relatively under-owned and under-researched. Introducing this strategy to Asia underscores our commitment to providing our clients with strategies that can meaningfully elevate the performance of their portfolios. The US SMID Cap strategy can complement pre-existing exposure to large-cap equities and offers diversification without necessarily attracting additional risk.”

ENDS

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About Fiera Capital Corporation

Fiera Capital is a leading independent asset management firm with a growing global presence and approximately US$122.1 billion in assets under management as at 31 March 2024. Fiera Capital 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 key markets in Asia. Fiera Capital’s depth of expertise, diversified investment platform and commitment to delivering outstanding service are core to our mission of being at the forefront of the investment management science to foster sustainable prosperity for all our stakeholders. Fiera Capital trades under the ticker FSZ on the Toronto Stock Exchange. www.fieracapital.com (opens in new window)

Headquartered in Montreal, Fiera Capital, with its affiliates in various jurisdictions, has offices in over a dozen cities around the world, including New York (U.S.), London (UK), and Hong Kong (SAR).

Each affiliated entity (each an “Affiliate”) of Fiera Capital only provides investment advisory or investment management services or offers investment funds in the jurisdictions where the Affiliate and/or the relevant product is registered or authorized to provide services pursuant to an exemption from registration.

In the U.S., asset management services are provided by Fiera Capital’s Affiliates who are investment advisers that are registered with the U.S. Securities and Exchange Commission (SEC) or exempt from registration. Registration with the SEC does not imply a certain level of skill or training. For details on the particular registration of, or exemptions therefrom relied upon by, any Fiera Capital entity, please consult this webpage (opens in new window).

Additional information about Fiera Capital, including Fiera Capital’s annual information form, is available on SEDAR at www.sedar.com (opens in new window).

 

Important Disclosure

 

Fiera Capital Corporation (“Fiera Capital”) is a global independent asset management firm that delivers customized multi-asset solutions across public and private classes to institutional, financial intermediary and private wealth clients across North America, Europe and key markets in Asia. Fiera Capital trades under the ticker FSZ on the Toronto Stock Exchange. Each affiliated entity (each an “Affiliate”) of Fiera Capital only provides investment advisory or investment management services or offers investment funds in the jurisdictions where the Affiliate and/or the relevant product is registered or authorized to provide services pursuant to an exemption from registration.

This document is strictly confidential and for discussion purposes only. Its contents must not be disclosed or redistributed directly or indirectly, to any party other than the person to whom it has been delivered and that person’s professional advisers.

The information presented in this document, in whole or in part, is not investment, tax, legal or other advice, nor does it consider the investment objectives or financial circumstances of any investor.

Fiera Capital and its Affiliates reasonably believe that this document contains accurate information as at the date of publication; however, no representation is made that the information is accurate or complete and it may not be relied upon. Fiera Capital and its Affiliates will accept no liability arising from the use of this document.

Fiera Capital and its Affiliates do not make recommendations to buy or sell securities or investments in marketing materials. Dealing and/or advising services are only offered to qualified investors pursuant to applicable securities laws in each jurisdiction.

Past performance of any fund, strategy or investment is not an indication or guarantee of future results. Performance information assumes the reinvestment of all investment income and distributions and does not account for any fees or income taxes paid by the investor. All investments have the potential for loss. Target returns are forward-looking, do not represent actual performance, there is no guarantee that such performance will be achieved, and actual results may vary substantially.

This document may contain “forward-looking statements” which reflect the current expectations of Fiera Capital and/or its Affiliates. These statements reflect current beliefs, expectations and assumptions with respect to future events and are based on information currently available. Although based upon what Fiera Capital and its affiliates believe to be reasonable assumptions, there is no guarantee that actual results, performance, or achievements will be consistent with these forward-looking statements. There is no obligation for Fiera Capital and/or its Affiliates to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise.

Strategy data such as ratios and other measures which may be presented herein are for reference only and may be used by prospective investors to evaluate and compare the strategy. Other metrics are available and should be considered prior to investment as those provided herein are the subjective choice of the manager. The weighting of such subjective factors in a different manner would likely lead to different conclusions.

Strategy details, including holdings and exposure data, as well as other characteristics, are as of the date noted and subject to change. Specific holdings identified are not representative of all holdings and it should not be assumed that the holdings identified were or will be profitable.

Certain fund or strategy performance and characteristics may be compared with those of well-known and widely recognized indices. Holdings may differ significantly from the securities that comprise the representative index. It is not possible to invest directly in an index. Investors pursuing a strategy like an index may experience higher or lower returns and will bear the cost of fees and expenses that will reduce returns, whereas an index does not. Generally, an index that is used to compare performance of a fund or strategy, as applicable, is the closest aligned regarding composition, volatility, or other factors.

Every investment is subject to various risks and such risks should be carefully considered by prospective investors before they make any investment decision. No investment strategy or risk management technique can guarantee returns or eliminate risk in every market environment. Each investor should read all related constating documents and/or consult their own advisors as to legal, tax, accounting, regulatory, and related matters prior to making an investment.

The ESG or impact goals, commitments, incentives and initiatives outlined in this document are purely voluntary, may have limited impact on investment decisions and/or the management of investments and do not constitute a guarantee, promise or commitment regarding actual or potential positive impacts or outcomes associated with investments made by funds managed by the firm. The firm has established, and may in the future establish, certain ESG or impact goals, commitments, incentives and initiatives, including but not limited to those relating to diversity, equity and inclusion and greenhouse gas emissions reductions. Any ESG or impact goals, commitments, incentives and initiatives referenced in any information, reporting or disclosures published by the firm are not being promoted and do not bind any investment decisions made in respect of, or stewardship of, any funds managed by the firm for the purposes of Article 8 of Regulation (EU) 2019/2088 on sustainability- related disclosures, in the financial services sector. Any measures implemented in respect of such ESG or impact

goals, commitments, incentives and initiatives may not be immediately applicable to the investments of any funds managed by the firm and any implementation can be overridden or ignored at the sole discretion of the firm. There can be no assurance that ESG policies and procedures as described herein, including policies and procedures related to responsible investment or the application of ESG-related criteria or reviews to the investment process will continue; such policies and procedures could change, even materially, or may not be applied to a particular investment.

“The following risks may be inherent in the funds and strategies mentioned on these pages.

Equity risk: the risk that the value of stock may decline rapidly for issuer-related or other reasons and can remain low indefinitely. Market risk: the risk that the market value of a security may move up or down, sometimes rapidly and unpredictably, based upon a change in market or economic conditions. Liquidity risk: the risk that the strategy may be unable to find a buyer for its investments when it seeks to sell them. General risk: any investment that has the possibility for profits also has the possibility of losses, including loss of principal. ESG and Sustainability risk: ESG and sustainability risk may result in a material negative impact on the value of an investment and performance of the portfolio. Geographic concentration risk: geographic concentration risk may result in performance being more strongly affected by any social, political, economic, environmental or market conditions affecting those countries or regions in which the portfolio’s assets are concentrated. Investment portfolio risk: investing in portfolios involves certain risks an investor would not face if investing in markets directly. Operational risk: operational risk may cause losses as a result of incidents caused by people, systems, and/or processes.

For further risks we refer to the relevant fund prospectus.

United Kingdom: This document is issued by Fiera Capital (UK) Limited, an affiliate of Fiera Capital Corporation, which is authorized and regulated by the Financial Conduct Authority. Fiera Capital (UK) Limited is registered with the US Securities and Exchange Commission (“SEC”) as investment adviser. Registration with the SEC does not imply a certain level of skill or training.

United Kingdom – Fiera Real Estate UK: This document is issued by Fiera Real Estate Investors UK Limited, an affiliate of Fiera Capital Corporation, which is authorized and regulated by the Financial Conduct Authority.

European Economic Area (EEA): This document is issued by Fiera Capital (Germany) GmbH (“Fiera Germany”), an affiliate of Fiera Capital Corporation, which is authorized and regulated by the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin).

United States: This document is issued by Fiera Capital Inc. (“Fiera U.S.A.”), an affiliate of Fiera Capital Corporation. Fiera U.S.A. is an investment adviser based in New York City registered with the Securities and Exchange Commission (“SEC”). Registration with the SEC does not imply a certain level of skill or training.

United States – Fiera Infrastructure: This document is issued by Fiera Infrastructure Inc. (“Fiera Infrastructure”), an affiliate of Fiera Capital Corporation. Fiera Infrastructure is registered as an exempt reporting adviser with the Securities and Exchange Commission (“SEC”). Registration with the SEC does not imply a certain level of skill or training.

Canada

Fiera Real Estate Investments Limited (“Fiera Real Estate”), a wholly owned subsidiary of Fiera Capital

Corporation is an investment manager of real estate through a range of investments funds.

Fiera Infrastructure Inc. (“Fiera Infra”), a subsidiary of Fiera Capital Corporation is a leading global mid-market direct infrastructure investor operating across all subsectors of the infrastructure asset class.

Fiera Comox Partners Inc. (“Fiera Comox”), a subsidiary of Fiera Capital Corporation is a global investment

manager that manages private alternative strategies in Private Credit, Agriculture and Private Equity.

Fiera Private Debt Inc. (“Fiera Private Debt”), a subsidiary of Fiera Capital Corporation provides innovative investment solutions to a wide range of investors through two distinct private debt strategies: corporate debt and infrastructure debt.

Please find an overview of registrations of Fiera Capital Corporation and certain of its subsidiaries here: https://www.fieracapital.com/en/registrationsand-exemptions

 

For Further Information:

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