Active Management as a Lifeline: Fiera Capital's High Conviction Strategy in a Volatile World

The current investment landscape is defined by volatility, with markets swinging between optimism and anxiety over inflation, geopolitical tensions, and shifting monetary policies. In this environment, passive strategies that mirror indices often struggle to add value, while active management—particularly when anchored to disciplined, high-conviction approaches—can act as a critical stabilizer. Fiera Capital's recent mandate to manage the Canadian High Conviction Equities strategy for Wellington-Altus's MiBLOX fund offers a timely case study in how active management can enhance portfolio resilience. By focusing on quality, diversification, and strategic partnerships, Fiera is positioning itself to navigate volatility while delivering long-term returns.

The Case for Active Management in Volatile Markets

Passive strategies have dominated the investment narrative for years, but their appeal erodes when markets diverge from historical norms. Active management, by contrast, thrives in such conditions. Fiera's High Conviction Equities strategy exemplifies this approach: it prioritizes deep fundamental research, rigorous earnings analysis, and a focus on companies with durable competitive advantages. In a world where macroeconomic uncertainty clouds forecasts, such discipline allows managers to avoid overexposure to cyclical risks and instead concentrate on firms with earnings power and balance sheets capable of weathering volatility.

The partnership with Wellington-Altus highlights another strategic advantage: distribution. By embedding its strategy into Platinum Private Portfolios, Fiera gains access to high-net-worth clients and advisors who value active management's ability to adapt to shifting market dynamics. This integration underscores a broader truth: active management's value is not just in stock selection but in its capacity to align with evolving client needs.

Fiera's Strategic Playbook: Focus, Discipline, and Scale

Fiera's decision to wind down smaller Canadian equity strategies and concentrate resources on its flagship large-cap offering reflects a core principle of successful active management—focus breeds excellence. By narrowing its scope to companies with “robust financial health and consistent earnings performance,” the firm avoids the dilution of resources that often weakens diversified mandates. This specialization also aligns with its leadership: Nessim Mansoor, the head of the Canadian Large Cap team, brings decades of experience in identifying companies that can sustain outperformance through cycles.

The strategy's launch in June 2025 also comes at a pivotal moment for Canadian equities. While the S&P/TSX Composite Index has lagged global peers in recent years, pockets of strength exist in sectors like technology, energy transition, and financial services. Fiera's ability to identify these opportunities—and avoid overexposure to laggards—could prove decisive.

Risks and Mitigation: Navigating the Challenges

No strategy is immune to risk, and Fiera's approach is not without its vulnerabilities. Canadian equities remain concentrated in a handful of sectors, particularly energy and financials, which face cyclical and regulatory headwinds. Additionally, the firm's reliance on institutional clients, as noted in its Q1 2025 earnings report, could amplify volatility in AUM during market downturns.

Yet Fiera's broader portfolio diversification—its $161.6 billion in AUM as of March 2025 includes private markets, real estate, and global equities—buffers against overexposure to any single asset class. The shift toward private markets, where AUM grew by 2.5% in Q1 2025, further underscores its strategy of balancing risk through asset-class diversification. Meanwhile, its emphasis on ESG integration (evidenced by a Green Star rating from GRESB) positions it to capitalize on the growing demand for sustainable investments, which are proving more resilient in volatile markets.

Implications for Long-Term Portfolio Resilience

For investors, Fiera's High Conviction Equities strategy exemplifies how active management can bolster portfolios during turbulence. By emphasizing quality over quantity, it reduces the risk of “diworsification”—the inclusion of marginal holdings that drag down performance. The integration into Wellington-Altus's private portfolios also aligns with a broader trend toward holistic wealth management, where active managers partner with advisors to craft customized, risk-aware solutions.

Investors should, however, remain mindful of two critical factors: timing and costs. While active management can outperform in volatile markets, its success hinges on managers' ability to navigate prolonged uncertainty. Fees must also be scrutinized; Fiera's strategy's value proposition will depend on its capacity to generate alpha that exceeds its expense ratio.

Conclusion: Active Management as a Prudent Hedge Against Uncertainty

In an era of heightened market instability, Fiera's focus on high-conviction equity investing offers a compelling model for resilience. Its strategy—rooted in disciplined research, strategic partnerships, and a willingness to cull underperforming initiatives—reflects the traits of a manager prepared to thrive in both calm and stormy waters. For investors seeking to avoid the pitfalls of passive indexing while preserving capital and growth potential, active managers like Fiera deserve serious consideration.

The road ahead remains fraught with uncertainty, but as Fiera's actions demonstrate, strategic focus and adaptability can turn volatility from a threat into an opportunity. In such times, active management is not just a preference—it is a necessity.