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Opinions Paul Harris, CFA
Fiera Capital CorpFSZ.TOCOMMENTSep 11, 2023
Paul Harris, CFAUnknown
$5.67
Stock price when the opinion was issued
$5.29
As of Jun 19, 2026. Market Open.
Financial Services
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BUY ON WEAKNESS
Canadian asset manager that has seen low share price (higher interest rates).
AUM growth has been weaker due to choppy markets.
Cyclical business that will recover with flat interest rates.
Jamie Murray No
Financial Services
COMMENT
FSZ vs. ZWU Both pay around an 8% dividend, which at that level it's probably not pure dividend you're getting on a long-term basis. About 6.5% is the limit for a sustainable dividend level. Plus, you get worries about the future of hydrocarbon demand. He himself doesn't see this, but it's a scenario to consider. Both FSZ and ZWU, you're getting some of your capital back to fund their dividends--this is not sustainable. ZWU has underperformed the equal-weight bank ETF since inception. So, the covered call portion isn't adding value, but is an additional-fee generator. He's rather buy the underlying stocks. Fiera has done a ton of purchases, not all of them cheap or good. Their wealth management business has been positive in the last 18 months, but you risk a market correction and a major re-pricing of assets, more so than any Canadian bank.
Financial Services
BUY
Unusually high dividend should get your spidey senses tingling. Market doesn't believe dividend is sustainable, but he does and thinks it will grow slowly over time. Unique asset manager in that they've created some growth. Strong leadership. Dividend is compelling, doesn't foresee huge capital appreciation. Comfortable buying for income.
Brian MaddenOwned
Financial Services
WEAK BUY
Really likes the investment management sector. It should be pretty good business in a time of a decent market and reflation. Great company. Decelerating revenue growth. Relative underperformer. Dividend is attractive at 8%. When a group gets into gear, you want to look at the leaders. He owns BX, CIX, BLK, IGM, and POW. You could also look at the IAI ETF.
Financial Services
BUY
Dividend is safe. Dividend has grown about 13% compounded over the last decade. Size and cadence of dividend has slowed. Company is surviving and thriving, due to management. Earnings growing consistently. Good acquirers. Has a bit of beta, so a good play in this market. Cheap at 8x earnings.
Brian MaddenOwned
Financial Services
DON'T BUY
Good alternative to a bank share? In a word, no. Their big 20% share drop move is significant. Asset management growth companies are more volatile, especially in falling markets when asset values are falling. He prefers to own traditional banks for their better dividend yield and more diversified business.
Financial Services
PAST TOP PICK
(A Top Pick Sep 27/19, Up 13%) They bought one of the world's largest fund managers. Pays a sustainable 7% dividend yield. In falling markets, active managers outperform, which will benefit Fiera.
Gavin GrahamOwned
Financial Services
TOP PICK
The third largest independent asset manager in Canada. They have 100B in assets. They are doing rollups now. A major French asset management entered into an agreement with them and bought 11% of National Bank's shares.
Gavin GrahamOwned
Financial Services
COMMENT
Pays nearly a 7% yield. Cheap PE, too. They've grown by acquisition, owning hedge funds,. private equity, etc. But can they grow organically and increase margins? If they acquire, they must buy big companies to make enough of an impact. They also face heavy competition from ETFs and companies like Blackrock.
Financial Services
It is in the field of asset management and manages $164 billion in assets. It has grown by acquisition in the last while but the stock price is too low now for them to use it as currency for more acquisitions. It needs to be bigger in this type of business and there are better places to be.