Q: Hello 5i Team: As a long time holder of Fiera wondering if outflows of assets will continue and how the recent 4 billion will affect bottom line.Is the 10% draw down warrented? Thanks Mike
5i Research Answer:
The $4B withdrawal is fairly serious, though FSZ does have $166B, and it continues a trend of some assets leaving the company (including money that earlier flowed out to Pinestone following Nadim Risk's departure in 2021). On the plus side, it is coming at a time of good markets, and FSZ has seen some positive momentum recently (we have comments on its quarter posted). The 10% drawdown seems a bit much on the news, but any large $$ exit is never good for sentiment. But the drop may have been partly profit-taking as well, as shares have been on a roll prior to this event.