Fiera Capital A’s Mixed Earnings Call Review

Fiera Capital A ((TSE:FSZ)) has held its Q3 earnings call. Read on for the main highlights of the call.

The recent earnings call for Fiera Capital A presented a mixed sentiment, highlighting both achievements and challenges faced by the company. While the firm celebrated growth in assets under management and accolades in fixed income, it also acknowledged hurdles in equity strategies and a decline in public market revenues and net earnings.

Increase in Total Assets Under Management

Fiera Capital reported a 4% increase in total assets under management, reaching $166.9 billion. The public market platform saw a 3.9% rise to $145 billion, while the private market platform grew by 5.3% to $22 billion. This growth underscores the company’s ability to expand its asset base despite market volatility.

Recognition in Fixed Income

The company was honored as the Fixed Income Manager of the Year at the European Awards 2025, reflecting its strong performance in fixed income strategies. Impressively, 86% of fixed income assets outperformed their benchmark over one year, and 97% over five years, showcasing Fiera Capital’s expertise in this area.

Strong Performance in Private Markets

Private market strategies delivered positive returns, with key strategies achieving absolute returns between 5% and 10% over the past year. Notably, the infrastructure debt fund posted a 2.6% return in Q3 and an internal rate of return exceeding 11% since inception.

Launch of Canadian Built Opportunities Fund

Fiera Capital launched the Canadian Built Opportunities Fund, receiving an initial investment of approximately $800 million from the Canadian District of the United Brotherhood of Carpenters and Joiners of America. The fund aims to surpass $1 billion in assets within three years, marking a significant milestone for the company.

Financial Performance Improvement

The company’s financial performance showed improvement, with an adjusted EBITDA of $50 million for the quarter, marking a 10% increase quarter-over-quarter. The EBITDA margin remained robust, just over 30%.

Challenges in Equity Strategies

Equity strategies faced difficulties in outperforming benchmarks due to issues in security selection and limited exposure to high-performing sectors such as materials and energy. This remains a key area for improvement for Fiera Capital.

Decrease in Public Market Revenues

Public market revenues experienced a decline, with base management fees down $4 million from the same quarter last year. This was attributed to a reduction in sub-advised assets under management.

Performance Fee Volatility

Performance fees were notably volatile, amounting to $200,000 during the quarter, a significant drop from less than $1 million in the same quarter the previous year.

Net Earnings Decline

Net earnings attributable to shareholders fell to $6 million or $0.05 per diluted share, down from $13 million or $0.11 per diluted share in the same quarter last year, indicating a challenging financial landscape.

Forward-Looking Guidance

Looking ahead, Fiera Capital provided optimistic guidance with a 4% increase in total assets under management, driven by market appreciation and net organic growth. The company also highlighted a $500 million mandate in the U.S. growth equity strategy and an $800 million investment in the Canadian Built Opportunities Fund. Financially, Fiera Capital reported a 3% increase in total revenues from the previous quarter and a decrease in net debt to $680 million.

In summary, Fiera Capital’s earnings call painted a picture of both progress and challenges. While the company achieved significant growth in assets under management and received recognition for its fixed income strategies, it also faced hurdles in equity strategies and a decline in public market revenues. The forward-looking guidance suggests a positive outlook, with strategic investments and financial improvements paving the way for future growth.