Fiera Capital's Strategic Overhaul: Legal Strength and Fund Cuts Signal Resilience for Long-Term Growth

As global markets grapple with rising interest rates, regulatory complexity, and shifting investor preferences, asset managers must balance risk mitigation with growth. Fiera Capital, a $161.6 billion firm, has taken decisive steps to reinforce its operational agility: appointing Sandro Muzzo as Global Chief Legal Officer and strategically terminating underperforming fixed-income funds. These moves highlight the firm's ability to adapt to volatility while positioning itself for long-term success.

Strengthening Compliance with Legal Leadership

The July 15, 2025, appointment of Sandro Muzzo as Global Chief Legal Officer marks a critical step in fortifying Fiera's regulatory preparedness. Muzzo's 15-year tenure within Fiera's legal ranks, including his prior role as Senior Vice President and General Counsel, underscores his deep institutional knowledge. His mandate to lead the legal function while advising on global transactions and regulatory shifts aligns with Fiera's expansion ambitions.

In an era of evolving compliance demands—from cross-border data regulations to ESG disclosures—Muzzo's expertise is pivotal. His team's focus on legal excellence and ethical standards will be critical as Fiera navigates jurisdictions such as the U.S., where its SEC-registered entities must adhere to stringent oversight. This strategic upgrade reduces compliance risks, a key concern for investors in an industry increasingly scrutinized by regulators.

Fund Rationalization: Cutting Underperformers to Fuel Growth

Fiera's decision to terminate the imaxx Canadian Fixed Pay Fund and imaxx Short Term Bond Fund by November 28, 2025, reflects a disciplined approach to capital allocation. These moves respond to structural challenges in fixed-income markets, including rising rates and liquidity pressures. Unitholders will receive proceeds based on NAV until the closure, minimizing disruption.

The reallocation of capital toward high-growth sectors is already yielding results. Fiera's Private Markets segment, which includes real estate, infrastructure, and private credit, grew 12.2% year-over-year to $21.1 billion as of Q1 2025. Key drivers include:
- A $947 million acquisition of a rental-homes real estate platform.
- New mandates in Agriculture and EMEA real estate.
- Organic growth of $125 million, supported by global diversification.

While Public Markets AUM declined 4.7% quarter-over-quarter due to outflows from Canoe Financial LP's sub-advisory termination, Fiera's focus on private markets demonstrates resilience. The firm's 3.3% total AUM dip in Q1 2025 is offset by Private Markets' 7.3% quarterly growth—a sign of strategic alignment with investor demand for inflation-hedging assets.

Navigating Volatility with Operational Agility

Fiera's actions reveal a dual strategy: risk reduction and opportunistic growth. The dividend cut to $0.108 per share, effective May 2025, preserves liquidity for accretive opportunities like share buybacks and strategic acquisitions. This contrasts with peers clinging to dividends despite capital constraints.

Investors should also note Fiera's geographic expansion, including new offices in Abu Dhabi and Switzerland. These moves underscore its commitment to diversifying revenue streams and servicing global clients. Meanwhile, the firm's ESG focus—evident in its management of the Quebec Sustainable Finance Fund—positions it to capitalize on rising demand for sustainable investing.

Risks and Considerations

• AUM Concentration: Fiera's reliance on PineStone sub-advised assets ($5.5 billion lost to Canoe's termination) remains a vulnerability.
• Regulatory Uncertainty: Muzzo's team must navigate evolving standards, particularly in the U.S. and EU.
• Public Markets Volatility: Fixed-income headwinds may persist, though Fiera's shift to alternatives mitigates this exposure.

Investment Implications

Fiera Capital's moves signal a disciplined focus on long-term value over short-term gains. Its Private Markets growth, legal expertise, and capital preservation strategies make it a compelling play for investors seeking exposure to asset managers with adaptive risk management.

Investment Takeaway: Fiera's stock offers a blend of defensive attributes (stable cash flows from private markets) and growth catalysts (expansion into ESG and global real estate). Investors should monitor its Q3 2025 results for further signs of AUM stabilization and margin improvement.

In volatile markets, firms that combine regulatory rigor with strategic capital reallocation thrive. Fiera's overhaul positions it as a leader in the asset management sector's evolution—a testament to the power of foresight in turbulent times.