Fiera Capital Corporation (FSZ) Earnings Call Transcript & Summary

Good morning, ladies and gentlemen. My name is Jean-Guy Desjardins, and I am the Chairman of the Board and Chief Executive Officer of Fiera Capital Corporation. Health and safety of our employees, Directors, clients, partners and shareholders are our highest priorities in these uncertain times. Given the current COVID-19 pandemic and in order to comply with the social distancing measures in place, Fiera Capital has decided to hold its 2020 Annual General Meeting of Shareholders in a virtual format only. This is the first time that Fiera Capital holds a virtual meeting, which means that the procedure will be different from previous years. The instructions on how to exercise your voting rights or ask questions during the meeting are currently displayed on your screen. In that regard, we would like to remind you that registered shareholders and registered proxy holders are the only persons entitled to vote or ask questions during the meeting. You will be able to vote on each proposal up until the closing of the vote after the last resolution. You will be notified when the voting period is over. If you have already voted by proxy, it is not necessary to vote again. Please note that if you choose to vote again, only your vote cast during the meeting will be counted, and the vote that you submitted by proxy will be revoked. If questions are asked, we will first identify the shareholder or proxy holder asking the question and then read it aloud so that it may be heard by all shareholders, proxy holders and guests present at the meeting. To ensure the orderly conduct of the meeting, we have designated, in advance, Mr. Jean-Philippe Lemay to ask -- to act as proposer mover and Mr. Gabriel Castiglio to act as seconder. Please note that both, Mr. Lemay and Mr. Castiglio, are shareholders of the firm. In accordance with the bylaws of the firm, I will be acting as Chairman of the meeting, and Mr. Gabriel Castiglio will be acting as Secretary. I am pleased to welcome you to this Annual General and Special Meeting of Fiera Capital Corporation. This year's meeting will be held in French. Simultaneous translation in English is available. Certain forward-looking information within the meaning of applicable securities laws may be presented over the course of this meeting. We encourage you to review the cautionary statement relating to forward-looking information, which appears on your screen. I will now present to you the persons who will be able to answer your questions during the meeting: Mr. Jean-Philippe Lemay, Global President and Chief Operating Officer; Mr. Lucas Pontillo, Executive Vice President and Global Chief Financial Officer; and Mr. Gabriel Castiglio, Executive Vice President; Chief Legal Officer and Corporate Secretary; and myself. The agenda for today's meeting will be the following: We will begin with the appointment of Scrutineer and the confirmation that a quorum is reached. The firm's financial statements for the financial year ending December 31, 2019, and the independent auditor's report thereon will then be received. Following this, we will elect the firm's Directors and proceed with the appointment of the firm's Independent Auditor. Next, we will vote on the firm's internal corporate reorganization resolution. And finally, I will present the highlights of the 2019 financial year and of the first quarter 2020. The meeting will conclude with a question period. Pursuant to the authority granted to me by the bylaws of the firm, I appoint Mr. Paul Allen, a representative of Computershare Investor Services, Inc. as Scrutineer for this meeting. The Scrutineer has informed us that we have quorum since at least 2 shareholders holding at least 20% of all voting shares are present and represented by proxy. I thus declare the meeting validly called and duly constituted for the transaction of business provided for in the agenda. The Scrutineer's report will be given to the Secretary of the meeting and attached to the minutes of this meeting. Please also note that you can obtain the minutes of the last annual meeting upon request to the Secretary of the firm. Also, I confirm that the Secretary of the firm has provided me with a copy of the notice of meeting, the management information circular, and forms of proxy and the confirmation from Computershare that these documents have been duly sent to the shareholders. These documents will be attached to the minutes of the meeting. We will now begin the formal portion of the meeting. I refer you to the consolidated financial statements for the financial year ended December 31, 2019, and to the Independent Auditor's report thereon. These documents have been provided to any shareholder who requested them. We understand that you reviewed these documents, and we will therefore not ask the Secretary of the meeting to read them. We would like to remind you that the consolidated financial statements for the financial year ended December 31, 2019, as well as the auditor's report are available at www.sedar.com, and on the firm's website in the Investor Relations section. As previously mentioned, once we have addressed all the legal and technical items on the agenda, you will have the opportunity to ask us your questions. The next item on the agenda is the election of Directors. As provided for in the articles of the firm, the holders of Class A subordinate voting shares voting separately as a class are entitled to elect 1/3 of the members of the Board of Directors referred to as Class A Directors. And the holders of Class B special voting shares, voting separately as a class, are entitled to elect 2/3 of the members of the Board of Directors referred to as Class B directors. We will therefore have 1 vote for Class A Directors and 1 vote for Class B Directors. In accordance with the management information circular, management proposed to elect 12 nominees as Directors of the firm, being 4 Class A directors and 8 Class B directors. I would now ask Gabriel to indicate whether we have received any questions on this item of business through the electronic platform.

Mr. Chairman, I confirm that we have not received any questions on this item of business through the electronic platform.

Thank you. I would now request a motion for the nomination of the Class A Director nominees of the first -- of the firm appearing on your screens.

Mr. Chairman, I propose the nomination of the following persons as Class A Directors of the firm: Mr. Geoff Beattie, Mr. Gary Collins, Mr. Jean Raby and Mr. David R. Shaw.

Is this motion seconded?

Mr. Chairman, I second the motion.

Thank you. I confirm then that the firm has not received proposals from other Director nominees, and thus declare that the nomination period is closed. I remind you that the holders of Class A subordinate voting shares will vote separately as a class on the motion for the election of each of the following: Mr. Beattie, Collins, Raby and Shaw. We now invite you to vote on the election of the Class A directors and remind you that it is possible to vote on all proposals on the agenda of the meeting up until the closing of the vote after the last resolution. [Voting]

With respect to the election of Class B Directors of the firm, only the holders of Class B special voting shares voting separately as a class are entitled to vote. The persons appearing on your screen are proposed as Class B Directors of the firm, the following: Mr. Réal Bellemare, Mr. Vincent Duhamel, Mr. Nitin Kumbhani, Mr. Raymond Laurin, Mr. Jean C. Monty, Ms. Lise Pistono, Mr. Norman Steinberg and myself, Jean-Guy Desjardins. [Voting]

I confirm that the sole holder of Class B special voting shares, Fiera Capital LP has voted in favor of the election of each of the nominees proposed by management to be elected as Class B directors of the firm. Accordingly, I declare each of these nominees elected as Class B directors of the firm. The next item on the agenda is the appointment of the auditor for the financial year ending December 31, 2020. Shareholders are asked to reappoint the auditor, Deloitte, until the next Annual Meeting of the Shareholders and to authorize the Board of Directors to fix its compensation. The holders of Class A subordinate voting shares and Class B special voting shares are entitled to vote on the appointment of the auditor. I will now ask Gabriel to indicate whether we have received any questions on this item of business through the electric platform.

Mr. Chairman, I confirm that we have not received any questions on this item of business through the electronic platform.

Thank you. I would now request a motion for the appointment of the auditor.

Mr. Chairman, I propose that Deloitte be appointed as auditor of the firm for the financial year ending December 31, 2020, and to authorize the Board of Directors to set its compensation.

Thank you. Is there a seconder?

Mr. Chairman, I second the motion.

Thank you. I invite you to vote on the appointment of the firm's auditor and remind you that it is possible to vote on all proposals on the agenda of the meeting up until the closing of the vote after the last resolution. [Voting]

The next item on the agenda relates to the approval of the internal corporate reorganization of the firm. As explained in the management information circular. The firm proposes to undertake a reorganization of its internal structure in order to create a global holding company to hold the firm's various national and international operations. Such reorganization would be affected by way of a transfer by the firm of all of its Canadian portfolio management activities, including, but not limited to, all of the firm's rights and obligations under the various investment management agreements, trust agreements and administration and services agreements related to such portion of its business to one or more newly created direct or indirect wholly-owned subsidiary or subsidiaries of the firm. The holders of Class A subordinate voting shares and Class B special voting shares are invited to vote on this special resolution, the full text of which is set forth in Appendix A of the management information circular sent in connection with the meeting. I remind you that the firm's Board of Directors recommends that shareholders vote in favor of this resolution. I will now ask Gabriel to indicate whether we have received any questions on this item of business through the electronic platform.

Mr. Chairman, I confirm that we have not received any questions on this item of business through the electronic platform.

I would now request a motion for the adoption of the internal corporate reorganization resolution.

Mr. Chairman, I propose the adoption of the internal corporate reorganization resolution.

Thank you. Is there a seconder?

Mr. Chairman, I second the motion.

Thank you. I invite you now to vote on the firm's internal corporate reorganization resolution. Since we've covered all of the topics on the meeting's agenda, we will now take a short break in order to allow registered shareholders and proxy holders to vote if they have not already done so. I remind you that if you already voted by proxy, it is not necessary to vote again. [Voting]

The voting period is now closed for all of the topics on the meeting's agenda. The Scrutineer has provided us with their preliminary report. I thus declare that a majority of the votes cast by the holders of Class A subordinate voting shares were in favor of the election as Directors of each of Mr. Geoff Beattie, Mr. Gary Collins, Mr. Jean Raby and Mr. David Shaw. I also declare that a majority of the votes cast by the holders of voting share of the firm were in favor of the appointment of Deloitte and more than 2/3 of the votes cast by the holders of voting shares of the firm were in favor of the internal corporate reorganization. The final voting results for each of these proposals will be filed on SEDAR as soon as they are available. In this next section of the presentation, I will begin by addressing our response to the COVID-19 situation and present our 2020 accomplishments. I will also discuss our first quarter investment performance and provide some highlights of our operating results. I will then conclude with our strategic outlook. Heightened volatility marked early 2020 with the WHO declaring a coronavirus outbreak and declaring a pandemic. Since then, uncertainty has persisted in the markets for weeks. The downturn in the global economy sparked by COVID-19 has affected all investors. The potential implications on individual health and health care systems worldwide are alarming. And the impact on economic growth in cities across the globe has yet to be fully ascertained. As a leadership team, our priority remains the safety and well-being of all Fiera Capital employees around the world. We activated our business continuity plans, and swiftly and effectively transitioned to operating remotely in mid-March. Today, the vast majority of all of our teams continue to work from home. To get back to a normal economic environment, we believe that one of the 2 things must happen. The first is the discovery and approval of a vaccine or treatment against COVID-19. And the second is the discovery that an existing drug can be used as a cure. I have always said that behind every crisis is an opportunity. We have managed well through past market dislocations, including during the 2008 global financial crisis. And we are well positioned to weather this crisis as well and to come out of it even stronger. Why do I say that? Because we have a strong competitive position. As of April 20, 2020, over 70% of our strategies under management were outperforming their respective benchmarks on a year-to-date basis. This outperformance differentiates us in our industry. Secondly, as of April 30, consolidated assets under management were above $167 billion, reflecting our equity investment team's significant outperformance. This is an increase of almost 6%, compared to the $158 billion as at March 31 of this year and compares to $170 billion at December 1, 2019. Thirdly, we have a wide range of diversified investment strategies, resulting in expanded sources of income across asset classes and geographies to meet our clients' needs through economic cycles. Fourthly, we have built a strong, solid portfolio of private alternative investment strategies, which offer returns with lower correlations to traditional asset classes and are in high demand, particularly in the current market backdrop. Of note, today, 90% of our Canadian institutional clients that are invested in private alternative strategies are also investors in our public market strategies. This is a testament to our competitive offering in multiple asset classes. We have trusted and lasting relationships with our clients, institutions and funds from around the world. In our business, this trust takes time to earn and that's why we nurture it every day. I'm very pleased with our Q1 2020 results. Especially in light of the challenging environment that we are facing with COVID-19. In 2019, we continued to execute on our strategic plan. We completed 4 acquisitions that added to our suite of competitive investment strategies and strengthened our international presence. They also contributed to further diversifying our revenue streams. We significantly enhanced our global operations and IT infrastructure which allowed us to swiftly and effectively transition to work from home in March. We also began remodeling our distribution capabilities and are already seeing the initial gains from that initiative. Our 2019 operating results reflect the successful execution of our ambitions. We grew assets under management by 24% and increased revenue by 22% in 2019 with a continued upward trend in average basis points per asset -- asset under management. We grew adjusted EBITDA and generated higher returns for shareholders. This means that our growth strategy is proving to be effective. We also completed the first quarter of 2020 on solid footing despite extreme market volatility. Assets under management decreased by 6.8% compared to the previous quarter, comparing very favorable -- or favorably, rather, to our peer group. Concurrently, many of our teams delivered first quartile performance on a trailing 12-month basis, and we continued to win new mandates. In April, we announced that we reached an agreement to sell the rights to manage Fiera investment's retail mutual funds to Canoe Financial. This transaction, which is expected to close in June 2020, will allow Fiera Capital to broaden its existing partnership with Canoe by leveraging the combination of Canoe's strong distribution network on the Canadian retail market and Fiera Capital's excellence in investment management. Canoe is one of the fastest-growing entities in the Canadian mutual fund industry with over $5.4 billion in assets across a diversified range of award-winning mutual funds. We are very pleased to enhance our relationship with this long-standing strategic partner. Finally, we announced 2 important executive appointments during the first quarter of 2020. And Jean-Philippe Lemay, who was previously President and Chief Operating Officer of our Canadian division, was appointed Global President and Chief Operating Officer. Mr. Lemay has 20 years of industry experience and has grown and evolved within Fiera Capital since 2012. He has demonstrated superior leadership capabilities and knowledge of the investment management industry, most notably by having successfully led the Canadian division since 2017. He is well respected, both within the firm and externally, and is committed to continue growing our organization responsibly and profitably. Mr. Lemay succeeds Vincent Duhamel, who has taken on the role of Vice Chairman of our Board of Directors. Mr. Duhamel took on the role of Global President and Chief Operating Officer in 2017 and has been instrumental in implementing Fiera Capital's 2022 Strategic Plan. Moving forward, he will co-lead the development of our strategic alliance with Natixis and oversee Bel Air Investment Advisors as well as ensuring a proper transition with Mr. Lemay. I want to thank both Mr. Lemay and Mr. Duhamel for their contribution to the organization, and I am fully confident that they will successfully guide Fiera Capital into its next phase of growth. In 2019, we grew assets under management by $33 billion. We achieved this in part by winning $12.5 billion in new mandates during the year. The 4 acquisitions were completed and added $15.7 billion to AUM, assets under management, and momentum experienced in equity markets contributed almost $20 billion. Importantly, we are winning new mandates that generate, on average, higher base management fees per asset under management than the redemptions experienced during that same period. This pattern has been recurring in a significant way over the last several quarters. And stems from our continued expansion and diversification into private alternative investment strategies and our top-performing strategies such as Global and Canadian equity. And more recently, in 2020, we funded $1.7 billion in new mandates during the first quarter. We had more than $600 million across many of our strategies. We also had invested in alternative strategies. Private wealth clients contributed over $650 million and financial intermediaries in Europe and the U.S. invested $400 million across many of our strategies. Despite the turbulence in global equity markets, our award-winning global equity team generated significant wins of over USD 1.1 billion during this first quarter. And at the start of the second quarter, they funded a significant institutional client win of USD 1 billion. This is a testament to their track record and reputation with investors. Let me now take a moment to discuss our investment performance. I am very pleased to report that it has remained strong despite the capital market's environment, where volatility reached an all-time high during the first quarter of 2020.. For equity, most of the company's equity strategies outperformed their benchmarks during the 12-month period ended March 31, 2020. On a relative return basis, many strategies outperformed their benchmarks by double digits. Over the last 5 years, 82% of our equity strategies outperformed their benchmarks. Our fixed income strategies generated positive absolute returns during the 12-month period ended March 31. Over the last 5 years, 93% of our fixed income strategies outperformed their benchmarks. In private markets, our infrastructure strategies performed according to expectations, delivering high single-digit returns and continuing to deploy capital. The health-related lockdown had a minimal impact on infrastructure as a result of our low exposure to assets that are dependent on traffic volume. Our private equity and global agriculture strategies also performed according to expectations, proving resilient in the face of the crisis. Canadian and United Kingdom real estate delivered positive returns for the last 12 months. The lockdown is hampering rental collections across the industry, the retail experiencing -- or with retail experiencing the greatest distress. Fortunately, our funds have relatively low portfolio exposure to retail and the currently challenged energy sector. Our private debt strategies in Canada and developed Asia, continue to develop or to deliver attractive positive returns over the last 12 months and delivered positive returns during the last 3 months as well. Notably, our diversified lending fund performed well, generating a return of 1.67% during the first 3 months of the year. Furthermore, as a result of the funds, many different liquidity sources and monthly distributions, it is still providing liquidity to clients, whereas other funds in the industry have completely halted redemptions. Our disciplined approach to redemptions is allowing clients wishing to withdraw the flexibility to do so over a more extended period of time in a manner that is fair to all investors. Our top priority is to protect our investors in the fund. We are very pleased with the way this fund has been managed and proud to report that we have also had inflows during both the months of March and April. I'm extremely pleased with the investment performance of our teams during this challenging first quarter of 2020. Our active approach to portfolio management, our asset class and regional diversification and the dedication of our employees make up for the competitive advantage that has allowed us to outperform in all respects during these unusual times. What's more? By virtue of these characteristics, we believe we are very well positioned for an eventual recovery. On this note, I would like to recognize a few of our investment teams. In 2019, our global equity team won the Institutional Asset Management Award, one of the most prestigious award programs in North America in the category, Active U.S. Equity Strategy of the Year. In addition, 4 investment funds managed by our Canadian equity and fixed income teams won Lipper Fund Awards. These awards highlight funds and fund companies that have excelled in delivering consistently strong risk-adjusted performance relative to their peers. Congratulations to our NBI Quebec Growth, NBI Precious Metals, Horizons Active Cdn Bond ETF and Horizons Active Floating Rate Bond ETF teams who each won a Lipper Fund Award in 2019. More recently, in April, our global equity fund received a 5-star overall rating from Morningstar, quite an accomplishment considering that only 10% of the funds rated by Morningstar are awarded a 5-star rating. I am, therefore, truly proud of all of our teams, their dedication to excellence and delivering superior investment advice to our clients has remained resolute across economic cycles. The values that drive us also makes Fiera Capital an architect of a more sustainable world. Our approach to corporate social responsibility reflects our dual role as a public company and an investment manager. Since 2017, ESG factors, environmental, social and governance factors, have proudly been a part of the analytical framework of all our investment teams. This commitment is social but also strategic. In this new decade, 2020, environmental, social and governance factors, ESG factors, will become essential criteria for investment discrimination, and companies that performed poorly in these areas will face a rise in their cost of capital. Markets increasingly tend to reward ESG champions, and this trend will only intensify in the coming years. Sustainability considerations are key in attracting the right talent to our firm and in comprehensively addressing investors' needs. We believe ESG factors will further influence capital allocation, even more so in a post-COVID environment. Capital must be oriented toward progress. As such, we continue making matters of responsible investing, a priority. In 2019, we developed and implemented new tools to better integrate ESG factors into our investment process. We revised our proxy voting policy to ensure that all of our delegates on the boards of portfolio companies support Fiera Capital's commitment to ESG factors. We also launched a global impact committee. And in early 2020, a new global impact fund, 2 initiatives that will rely on strengthened ESG research and analysis capabilities. Finally, I am proud to report that Fiera Capital's MSCI ESG rating was upgraded from a BBB to an A, indicating that we continue to lead our industry peers in incorporating ESG principles into our investment policies. Turning now to financial highlights for the first quarter of 2020. We are very pleased with our Q1 financial results, given the challenging macroeconomic environment that has persisted since early 2020. First quarter revenues of $161.7 million were up 13% compared to the first quarter of 2019, mainly from the following: additional revenues from the 4 acquisitions completed in 2019 and consisting of the acquisition of an 80% interest in Palmer Capital and the acquisitions of Foresters Asset Management, Integrated Asset Management and Fiera Investments; secondly, organic growth primarily from our global equity team and Fiera private alternative investments through our institutional distribution channel; and thirdly, higher performance fees stemming mainly from traditional assets. Net earnings attributable to company shareholders were $7.6 million compared to a net loss of $6.6 million in the first quarter of last year. The current quarter was impacted by a $19.9 million unrealized gain on the revelation of purchase price obligations and affordable financial instrument liability. This unrealized gain was partly offset by a $4.9 million loss on foreign exchange, forward contract and a $6.8 million loss on interest rate swaps. On a per share basis, we generated EPS of $0.07 compared to a net loss of $0.07 in Q1 of last year. Adjusted net earnings were $20.5 million during the first quarter or $0.20 per share basic and $0.19 per share diluted. This compares to adjusted net earnings of $24.9 million or $0.26 per share basic and diluted in the same period of the previous year. Q1 adjusted EBITDA was $43.5 million, up 12% year-over-year, primarily due to positive contributions from the acquisitions completed in 2019 combined with higher revenues from institutional markets and organic growth in our global equity and private alternative investment strategies. While we are encouraged by the improved market performance subsequent to quarter end, we remain vigilant and recognize that it is still premature to determine the full extent of the economic impact of this pandemic. As such, we continue to exercise prudence and are closely monitoring expense and capital allocation initiatives. Our balance sheet remains well capitalized, and we have sufficient liquidity with over $65 million in cash and cash equivalents as at March 31. Furthermore, we continuously stress test our business under different macroeconomic scenarios, monitoring risk and exposure. We developed contingency plans and take other appropriate actions as necessary as the situation evolves. As such, we were pleased to declare on May 14, a quarterly dividend of $0.21 per share, an amount unchanged from the previous dividend. The dividend is payable on June 25. And only after 17 years of existence, our firm has achieved international scale, and we are actively building global brand recognition. Here at home in Canada, we are one of the largest independent management companies. We are privileged to have more than 600 Canadian partners as clients, and we are proud to bring Canada's reputation for investment innovation and excellence to the rest of the world. Whereas just 5 years ago in 2015, 30% of our revenues were generated internally -- I'm sorry, internationally. But today, approximately half of our revenues are generated outside of Canada. As clients seek to further diversify their portfolio to mitigate the impacts of a crisis such as COVID-19. Our global footprint is a strong competitive advantage. And with more than 800 employees around the world, we can serve our clients where it is relevant to them. As of March 31, 2020, total alternative assets, that is private and liquid assets under management were at $15.6 billion effectively meeting our target of 10% of firm-wide assets under management as set out in our 2020 strategic plan. In recent years, we have seen growing demand from our Private wealth clients to include private alternative investment strategies in their portfolios. These investments offer attractive returns with a lower degree of volatility and correlation as well as steady and predictable cash flows. We are catering to that asked by giving our clients access to investments in infrastructure, real estate, agriculture, private debt, private equity and Asian credit. Strategies that only large pension plans could previously subscribe to. Through organic and strategic growth, we expanded our offering in the private alternative space to just over 20 strategies. In 2019, with the arrival of Palmer and Integrated Asset Management's investment teams, we further extended the breadth and depth of our real estate and private debt capabilities for our clients. 2019 was also a year of capital raising, capital deployment and investment excellence. We raised $1.4 billion in new client commitments during the year and deployed $1.7 billion into private market assets. We delivered excellent investment performance across our portfolio. We significantly grew our number of dedicated professionals with expertise in deal sourcing and origination and continued to implement multiple ESG initiatives across the investment spectrum. We are also now operating worldwide with offices in New York, London, Hong Kong and, of course, Montreal and Toronto. Year-to-date, the relative performance of our private markets strategies across the board has been quite strong. Our investment teams are closely monitoring their investments, partners and borrowers to assess any potential impact. They manage their mandates with a long-term view and have built portfolios capable of withstanding temporary market dislocations. With their thorough experience, trusted relationships and disciplined monitoring, Fiera Private Alternative Investments has become a leading supplier of Private alternative strategies in the market. As we look ahead, we are confident that we have built an impressive foundation that will support and drive future growth. Our diversified and competitive investment platform enables us to offer customized solutions, which concurrently diversifies our revenue streams for a more resilient business model and balance sheet. During these unprecedented times, it is important to remember that a crisis is temporary, and that this one, too, shall pass. This is an incredible opportunity for us to help our clients navigate these events and strengthen our competitive positioning. There is now significant monetary and fiscal stimulus in the pipeline. We expect that by the time investor confidence comes back, the result will be an extended period of economic expansion and growth because of significant GDP gap will have been created in the meantime. We believe Fiera Capital can and will overcome this, and the opportunities that will follow could be significant. We expect that institutional and private wealth investors will continue to allocate capital to private investments that offer a compelling risk return profile. In the near term, our key areas of focus will remain: firstly, ensuring the resiliency of our organization and our investment platform; secondly, our commitment to investment excellence and generating alpha for our clients; thirdly, optimizing our balance sheet; fourthly, remodeling our distribution capabilities; and fifthly, further strengthening our technology platform with cybersecurity being a top priority. Because it is still premature to determine the full extent of the economic impact of COVID-19 and this pandemic, we remain vigilant, and we'll continue to manage expenses prudently. During these extraordinary times, our employees have remained resilient, and their positive attitude has permeated the firm. They are Fiera Capital's most valued assets and the source of innovation that propel us forward. I want to thank them for everything they do and for the organization, and for their outstanding professionalism and phenomenal collaboration. Collectively, we had to quickly adapt to new ways of operating, but our mission of being at the forefront of investment management science and delivering superior investment advice to our clients has remained intact. These have always been and will always be key priorities for Fiera Capital. I'm also grateful to our clients. We are honored to have earned their trust, and this derives our purpose every day, especially in times of crisis. I wish to express my gratitude to my fellow board members for their counsel and the valuable insight they continue to provide. And lastly, thank you to our shareholders, our bondholders and our banking partners for their unwavering support. I am confident that by successfully delivering on our mission to create sustainable wealth for our clients, we can create significant value for all of our stakeholders. Thank you for your attention. We are now opening up to question period. I remind you that Mr. Jean-Philippe Lemay, Global President and Chief Operating Officer; Mr. Lucas Pontillo, Executive Vice President and Global Chief Financial Officer; and Mr. Gabriel Castiglio, Executive Vice President, Chief Legal Officer and Corporate Secretary; and myself, are all available to answer any of your questions.

Hello. I would like to remind you that only shareholders or proxy holders can ask questions. We have not received yet any questions on the electronic platform. But there will be a short break allowing you to ask questions. Please follow the instructions on your screen. Mr. Chairman, I confirm that we have no more questions.

Thank you. As we have completed the business of the meeting, I now declare the meeting terminated. I would like to thank you all for attending this first virtual meeting of Fiera Capital Corporation. And we wish you a very good day. Thank you. [Statements in English on this transcript were spoken by an interpreter present on the live call.]