AS AT MARCH 31, 2017
FIERA CAPITAL INCOME OPPORTUNITIES FUND 1
FUND OBJECTIVE
INVESTMENT HIGHLIGHTS
The Fund’s investment objectives are to generate
absolute returns throughout the credit cycle
by investing long and short in credit and other
income generating securities; and to pay out a
distribution on a quarterly basis corresponding
to the income generated from the Portfolio.
The Fund will also seek to preserve capital and
mitigate risk through the application of both
portfolio and risk management tools.
Invest in income generating securities throughout the capital structure
Go long the most attractive income securities and sell short the most over-valued securities
Capability to hedge credit and interest rate risk
The portfolio will be managed to capture market dislocations
Investment managers with a proven track record of generating risk adjusted returns
Disciplined & rigorous approach to risk management
FUND DETAILS
Series A
Fund Codes FCO100
Management Fee 1.75%
Inception Date 06/2014
Distribution Rate A
F
FCO150
1.00%
05/2014
F
Q1 2016 0.11
0.12
Q2 2016 0.11
0.12
Q3 2016 0.12
0.13
Q4 2016 0.12
0.13
Distributions Frequency Quarterly
Assets Under
$86.2M
Management2
PERFORMANCE NET OF ALL FEES (SERIES F) (%)
Jan.
2014
2015
2016
2017
1M
-1.32
Feb.
Mar.
Apr.
0.83 2.37 -0.12
-0.51 2.11 7.38
0.45 -0.03 -1.32
0.27
6.10
3M
-0.91
6M
3.21
May Jun.
Jul. Aug. Sep.
4.56 2.83 0.88 0.03 0.26
0.00 -0.61 -0.13 -0.26 -1.49
1.04 0.11 1.97 2.64 0.91
YTD
-0.91
1Y
16.98
2Y
12.37
3Y
-
Oct. Nov.
0.30 -0.01
1.07 -0.21
0.31 2.13
4Y
-
Dec. Year/YTD
0.02
9.12
0.33
2.02
1.67
28.77
-0.91
5Y
-
SI
12.78
Performance figures since the commencement of operations on May 1, 2014. For the period beginning on October 17, 2013 and
ending on April 30, 2014, the Fund had not yet commenced operations and had no trading activity.
GROWTH OF $10,000
$14,204
Minimum Investment $5,000
Performance Fee 10%
Hurdle Rate 3.50%
High Water Mark Yes
RSP Eligibility Yes
Custodian The Bank of Nova Scotia
Trustee National Bank Trust Inc.
Auditor
PricewaterhouseCoopers
LLP
Liquidity Daily. T+3
1. Formerly named the Fiera Quantum Income
Opportunities Fund
2.As at December 31, 2016. Assets Under Management is the
sum of all Classes of the Fund
2015
2016
2017
TOP HOLDINGS (%)
Long exposures
Cash (excl short margin)
iShares 20+ Year Treasury Bond ETF
Sprint Corp
Linn Energy Inc
iPATH S&P 500 VIX Short-Term Futures
Weight
23.62
4.31
2.34
1.99
1.87
Short exposures
Baytex Energy Corp
Western Digital Corp
Weight
-0.49
-0.70
AS AT MARCH 31, 2017
FIERA CAPITAL INCOME OPPORTUNITIES FUND
RISK/RETURN ANALYSIS
MONTHLY COMMENTARY
Net annualized return since inception (%)
Annualized standard deviation (%)
Annualized Sharpe ratio (0.64%)
Best monthly return (%)
Worst monthly return (%)
Percentage of months with positive performance
Average return when market is up (%)3
Average return when market is down (%)3
Up-market capture ratio (%)
Down-market capture ratio (%)
12.78
6.46
1.88
7.38
-1.49
68.57
1.51
0.17
82.57
-8.03
Since Inception
3. Market based on S&P/TSX
EXPOSURE (%)
Credit
52.4
51.2
-1.2
50.1
Gross
Longs
Shorts
Net
Equity
17.7
14.2
-3.5
10.7
Overall
70.1
65.4
-4.7
60.8
Portfolio
3.89
1.97
BBB 5
Index4 5.88
4.21
B+
The Fiera Capital Income Opportunities Fund returned -1.32% for the
month of March. That compares to our benchmark the BAML HY Index’s
(hedged) return of 0.23% for the month. On a year-to-date basis, the
Fund has returned -0.91% vs. the benchmark return of 2.66%. The Fund’s
underperformance has been attributable to its substantial cash position,
plus investments in health care and retail.
Looking forward, we feel that the market is overdue for a pullback. The postUS election euphoria has, for the most part, continued. The three pillars – tax
reform, infrastructure spending and deregulation – have been what investors
continue to point to as to why the rally can and should continue. So far
to date, the administration’s ability to execute on this strategy has been
underwhelming. Moreover, valuations are rich and elevated. We feel that we
are in the early innings of a Fed tightening cycle and, while it has been well
forecasted, it is a tightening cycle nonetheless. We are not overtly bearish
given the technicals, but from a tactical perspective we are looking for a
better entry point.
PORTFOLIO STATS
Average YTW
Average duration
Average credit rating (excluding stocks)
4. BofA Merrill Lynch US High Yield Index
5. Cash is weighted as AAA
PORTFOLIO MANAGER
Senior Portfolio Manager
Angus Rogers
Investment Experience
27 years
fieracapital.com
Montréal
Toronto
Calgary
Vancouver
New York
Boston
Los Angeles
San Francisco
The fund is a commodity pool offered pursuant to a prospectus. The information contained herein is an overview only and is qualified by the more detailed information contained in the prospectus. The
prospectus contains important information about the fund, including its investment objective and strategies, investment risks, purchase options, applicable management fees, performance fees, other
charges and expenses. Please read the prospectus carefully before investing. The amount of risk associated with any particular investment depends largely on your own personal circumstances including
your time horizon, liquidity needs, portfolio size, income, investment knowledge and attitude toward price fluctuations. Investors should consult their financial advisor before making a decision as to
whether this fund is a suitable investment for them. This communication should not be considered a solicitation to buy or an offer to sell securities of the fund. Commissions, trailing commissions,
management fees and expenses all may be associated with mutual fund investments. The indicated rates of return are the historical annual compounded total returns including changes in unit value and
reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Mutual
funds are not guaranteed, their values change frequentlyand past performance may not be repeated. The rate of return is used only to illustrate the effects of the compound growth rate and is not intended
to reflect future values of the mutual fund or returns on investment in the mutual fund.
Legal Notice to US Persons: Fiera Capital Corporation (« Fiera Capital ») does not provide investment advisory services, or offer investment funds, in the United States or to U.S. persons. In the U.S., asset
management services are provided by its U.S. affiliates, which are investment advisers registered with the U.S. Securities and Exchange Commission. For more information, visit www.fieracapital.com