Fiera Capital Corp (FSZ.TO)

They are in the business of asset management. Their fixed income exposure could be a bit of concern to the market. He is a holder, thinks it is good value and expects a dividend increase going forward. They announced a $5 billion acquisition of a high net worth investment business last week.

He’s been looking closely at this company recently. If you look at total assets under management, they’ve grown a lot, much of that by acquisition. Their margins and expenses seem high. This is probably partially a result of paying top dollar for acquisitions, but he thinks something else is going on too. The compensation number seems very high. He thinks the company will have to digest its acquisitions and improve its profitability before it goes back up.

A money manager based out of Montreal involved in a number of Institutional high net worth. They've been a continual acquirer of other businesses. Pretty solidly managed, and have done well over time. Recently did a financing to shore up the balance sheet and help pay for some recent acquisitions. At these levels, it is a Buy.

It is not his favourite industry with the regulatory changes coming in terms of fee disclosure. Margins are going to get compressed. They have a great dividend growth record. It is a well managed company.

A tough, tough business. ETF’s are taking away mutual fund business. There are new regulations showing how much clients are paying in fees. This company has gone into the US and started buying US money managers. The stock is quite cheap and pays a nice dividend. National Bank (NA-T) owns half the company. Their growth rate has been a little bit higher than the rest of the business, and he likes the acquisitions that they have done. In a tough, tough industry, he would consider this as the best stock right now in that sector.

Asset management. National Bank (NA-T) owns a big chunk. They’ve started to make acquisitions in the US, which is where the growth opportunity really is. Unfortunately asset management is changing. Margins are going down, sales are dropping and everyone really doesn’t like the business right now. This is one of the better ones in the business. Has a decent dividend which is still growing. Own it for the dividend and the long-term story and asset accumulation, but just don’t expect a whole lot in the next year.

They are one of the leading consolidators in the Canadian asset management space. They have been very aggressive. It is probably a good long term one to hold on to. One day they may even be a takeover target themselves.

These are top-notch bond managers and very well respected. The stock chart is sort of meandering downward, and not a trend that he would want to be involved in. It is trying to find some support at the 2014 low. If it manages to hold support and then breaks the last high at around $12 he would consider buying it, but it is very early to make that prediction.

A Montréal-based rollup of investment managers around North America. Mostly pension fund type assets. He much prefers going with an organic growth story. 4% dividend yield.

(Top Pick Oct 25/13, Down 8.17%) He still recommends it. They made two acquisitions that look good and they raised their dividend. No one has really heard of them. People just weren’t paying attention.

They have been buying up money management companies. They have a big shareholder in National Bank (NA-T) when they bought out one of National’s businesses. What he doesn’t like is that they are thinking of buying wealth management companies similarly to the way they have been buying institutional money managers. Thinks this is a very, very dangerous strategy to pursue.

(A Top Pick in June 21/13. Up 21.06%.) Still likes. Stock has been a little quiet recently. Did a couple of US acquisitions, and a lot of people were excited about their potential rolling into the US. It is one of those companies where slow and steady is the name of the game. Pays a nice dividend. Up to $85 billion in assets. Earnings growth is good. A solid, long-term keeper in the asset management space.

Has done plenty of acquisitions. Continue to raise dividend. Bought two companies in the US and it looks good. A great, great company. Solid because they get their management fee even when the market goes down. Could sell themselves 5 years down the road.

When markets start going well, people start taking money from under their mattress and putting it in and that benefits companies like this. Stock price had a tremendous ride. Returns to investors were not all that great. The question is how they will attract people in the future. Expect that people who manage money will start doing much better.