After recording net earnings of $12 million in the first quarter, Montreal-based Fiera Capital Corporation had a net loss of $14.3 million in Q2.
In a Friday release, the asset manager said the loss was attributable largely to a $20.9-million restructuring charge that was incurred in June when Fiera reorganized its business into a global operating structure.
“Going forward, our new global operating model will allow us to strengthen our position as the trusted investment advisor of choice, in a more effective and efficient manner,” Jean–Guy Desjardins, chair and CEO of Fiera, said in a release.
Fiera’s total assets under management (AUM) were $171.0 billion at the end of June, an 8% increase over the previous quarter and a 14% improvement from a year earlier.
During the quarter, rallying global equity markets as well as new mandates contributed $15.9 billion and $4.2 billion, respectively, to Feira’s AUM.
Even so, that growth in AUM was offset by an “unfavourable foreign exchange impact” of $3 billion, net redemptions of $3.1 billion, and the sale of Fiera’s retail mutual funds to Canoe Financial, the firm reported.
Selling, general and administrative expenses were up slightly — $122.5 million in Q2, compared with $118.3 million in Q1.
Fiera has declared a dividend of 21 cents per share, payable on Sept. 23.