Fiera Capital A ((TSE:FSZ)) has held its Q1 earnings call. Read on for the main highlights of the call.
The recent earnings call for Fiera Capital A presented a mixed sentiment, reflecting both challenges and opportunities. The company faced significant hurdles, such as a decrease in assets under management (AUM), dividend reduction, and revenue decline, largely due to macroeconomic conditions and outflows from PineStone. However, there were positive developments, including growth in private markets and new leadership appointments, suggesting strategic positioning for future growth.
Positive Net Organic Growth Excluding PineStone
Fiera Capital reported positive net organic growth of approximately $550 million in the first quarter of 2025, excluding the impact of PineStone. This growth indicates resilience and the ability to attract new investments despite broader market challenges.
Private Markets Platform Growth
The company’s private markets platform experienced a significant increase, with assets growing by $1.4 billion or 7%, reaching a total of $21.1 billion during the quarter. This growth was driven by strategic acquisitions, including a new real estate asset in the UK.
Strong Investment Performance
Fiera Capital’s investment strategies showed robust performance, particularly in Canadian fixed income and global multi-sector income strategies. The latter outperformed its benchmark by over 70 basis points, highlighting the firm’s effective investment management.
New Leadership Appointments
In a strategic move, Fiera Capital appointed Maxime Ménard as Global President and CEO, effective July 1, 2025. Gabriel Castiglio and Lucas Pontillo were also appointed as Global COO and Global CFO, respectively, signaling a refreshed leadership team to drive future growth.
Decrease in Assets Under Management
The company reported a decrease in AUM by $5.5 billion for the quarter, primarily due to outflows from assets subadvised by PineStone. This reduction underscores the challenges faced in retaining managed assets.
Dividend Reduction
To maintain financial flexibility and support deleveraging, Fiera Capital reduced its quarterly dividend to $0.108 per share. This decision reflects a strategic shift to prioritize long-term growth opportunities over immediate shareholder returns.
Challenging Macroeconomic Environment
The macroeconomic environment posed significant challenges, with mixed global equity markets and a nearly 5% decline in the S&P 500 for the quarter. These conditions impacted Fiera Capital’s financial performance and strategic decisions.
Revenue Decline
Fiera Capital’s total revenues for the quarter were $163 million, a 3% decrease from the previous year. This decline was attributed to the challenging economic conditions and the impact of PineStone outflows.
Forward-Looking Guidance
Looking ahead, Fiera Capital provided guidance on various financial metrics and strategic directions. Despite the decrease in AUM, the company experienced positive net organic growth and a 7% increase in its private markets platform. Public markets AUM, excluding PineStone, also saw a modest increase. The Canadian equity strategy outperformed its benchmark significantly, and the company’s adjusted EBITDA margin remained stable at 26.6%. The dividend adjustment reflects a focus on financial flexibility and growth opportunities.
In summary, Fiera Capital’s earnings call highlighted a complex landscape of challenges and opportunities. While the company faced significant hurdles, such as a decrease in AUM and revenue decline, it also demonstrated resilience through positive net organic growth and strong investment performance. The strategic leadership appointments and focus on private markets growth position Fiera Capital for future success.