Fiera Capital AUM Dips, Masking Divergent Fortunes in Key Divisions

MONTREAL, QC – January 29, 2026 – Fiera Capital Corporation (TSX: FSZ) has provided an early look into its year-end performance, revealing a slight decline in total assets under management (AUM) that belies a significant strategic realignment occurring within the firm. The leading independent asset manager announced a preliminary AUM of approximately $164.1 billion as of December 31, 2025, a figure that marks a modest decrease from both the previous quarter and the prior year.

While the headline number shows a 1.8% year-over-year dip, a deeper dive into the results reveals a tale of two starkly different business trajectories. The firm is experiencing robust growth and strong client inflows in its strategic focus areas of Private Markets and core Public Markets, but this success is being overshadowed by a substantial and accelerating decline in its Public Markets sub-advised strategies. This divergence sets the stage for a critical fourth-quarter earnings announcement on February 26, where investors will be seeking clarity on the firm's path forward.

A Tale of Two Fieras

The preliminary data paints a picture of a company in transition. On one hand, Fiera Capital is executing successfully on its strategic growth initiatives. The firm's Private Markets platform was a standout performer, with AUM increasing by an impressive 11.4% year-over-year to reach $22.0 billion. This growth was fueled by approximately $900 million in net client inflows over the year and a strategic acquisition made in the first quarter of 2025. This segment, which includes assets like private credit, real estate, and infrastructure, appears to be a powerful engine for the firm, attracting significant new capital.

Similarly, the company's core Public Markets business, when stripped of its sub-advised component, also showed positive momentum. This segment saw its AUM grow by 4.7% for the year, reaching $108.2 billion. The growth was attributed to strong equity market performance in 2025 and net inflows of approximately $100 million.

However, these bright spots were dimmed by a significant drain from one specific area: Public Markets sub-advised AUM. This segment, where Fiera manages assets on behalf of other financial institutions, experienced a dramatic decline. AUM plummeted by $10.1 billion, or 22.9%, over the course of the year, ending at $33.9 billion. The outflow accelerated in the fourth quarter alone, with the segment losing $3.4 billion, a 9.1% drop from the previous quarter. This single area of weakness was substantial enough to pull the firm's total AUM into negative territory for the year.

Navigating Bull Market Crosscurrents

Fiera Capital's overall AUM decline is particularly noteworthy given the exceptionally strong market environment of 2025. The period was characterized by a broad-based rally across most global asset classes, providing a powerful tailwind for asset managers worldwide. The S&P/TSX Composite Index in Canada, for instance, delivered its best annual performance since 2009 with a 28.2% return, while the S&P 500 in the United States gained nearly 18%.

Even fixed income markets, which had faced headwinds in previous years, saw positive returns as central banks began to adopt a more accommodative stance. In this context, a decline in total AUM suggests that the company's results were driven more by net outflows of capital than by negative market movements. While many competitors reported strong AUM growth fueled by the market updraft, Fiera's results indicate it is grappling with firm-specific challenges that are counteracting the favorable market conditions.

The Sub-Advised Question Mark

The precipitous drop in sub-advised AUM will be the central focus for analysts and investors ahead of the full earnings report. The billion-dollar question is what is driving these massive outflows. The exodus could stem from several factors, including the termination of large institutional mandates, underperformance of specific strategies relative to their benchmarks, or a strategic decision by Fiera Capital itself to exit lower-margin or non-core sub-advisory relationships to focus on its higher-growth private and institutional businesses.

The scale of the decline—erasing nearly a quarter of the segment's assets in a single year—suggests more than typical client churn. Management's commentary during the upcoming February 26 conference call will be scrutinized for any explanation regarding the health of these client relationships and the long-term strategic plan for this part of the business. Investors will need to understand if this is a managed retreat from a legacy business or an uncontrolled bleed that could impact future profitability and market perception.

Private Markets Shine as a Strategic Pillar

In contrast to the sub-advised troubles, the continued strength of the Private Markets division offers a clear view of Fiera Capital's intended future. The 11.4% annual growth in this segment highlights the success of the firm's pivot toward more specialized, higher-fee alternative investments. With nearly $1 billion in net inflows during a year where the firm's overall AUM shrank, it's clear that clients are buying into this strategic direction.

This growth in private assets is crucial, as these funds typically offer more stable revenue streams and lock in capital for longer periods than public market funds, making them highly attractive for asset managers. The successful integration of a Q1 2025 acquisition further underscores the firm's commitment to expanding its footprint in this lucrative area. As Fiera continues to navigate the challenges in its public markets book, the performance of its private markets platform will remain a critical barometer of its long-term health and ability to generate sustainable wealth for its clients and shareholders. The key challenge for the firm will be whether the growth in this strategic pillar can accelerate quickly enough to offset the drag from other parts of the business and return the entire company to a positive growth trajectory.