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Fiera Capital Corporation

PRI reporting framework 2017

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ESG incorporation in actively managed listed equities

Implementation processes

LEI 03. Percentage of each incorporation strategy

New selection options have been added to this indicator. Please review your prefilled responses carefully.

03.1. Indicate (1) which ESG incorporation strategy and/or combination of strategies you apply to your actively managed listed equities and (2) the breakdown of your actively managed listed equities by strategy or combination of strategies (+/- 5%)

ESG incorporation strategy (select all that apply)

Percentage of active listed equity to which the strategy is applied
97 %
Percentage of active listed equity to which the strategy is applied
2.95 %
Percentage of active listed equity to which the strategy is applied
0.05 %
Total actively managed listed equities 100%

03.2. Describe your organisation’s approach to incorporation and the reasons for choosing the particular ESG incorporation strategy/strategies.

The responsability of portfolio managers is to assess and quantity risks and opportunities, including ESG factors. The approach is incorporated within each portfolio management team's investment process.

03.3. Where assets are managed using a combination of ESG incorporation strategies, briefly describe how these combinations are used. [Optional]

Screening

A number of Fiera's clients require that companies deemed unethical be screened out from their portfolios. A company will be deemed ineligible if it derives more than 10% of its revenue, either directly or indirectly, from a list of products or services.

Screening + Integration Strategies

The screening restricts the investable universe to companies not deriving revenue from unethical products or services. The integration strategies try to identify ESG issues, and to the extent that any of these are viewed negatively by our portfolio managers, a risk premium is required rendering a potential investment less appealing from an investment standpoint. The combination of both screening and integration strategies allows for the mitigation of non-financial risks.

Integration Only

Since January 1st, 2016, All of Fiera's Pooled Funds are integrating ESG factors into the fundamental investment decision-making process of the Fund. Fiera Capital is of the view that well-managed companies are generally those that demonstrate high ethical and environmental standards and respect for their employees, for human rights and for the communities in which they do business. These factors are taken into consideration in our fundamental analysis of the investments, as per each investment team's investment process


LEI 04. Type of ESG information used in investment decision (Private)


LEI 05. Information from engagement and/or voting used in investment decision-making (Private)


(A) Implementation: Screening

LEI 06. Types of screening applied

06.1. Indicate and describe the type of screening you apply to your internally managed active listed equities.

Type of screening

Screened by

Description

A company will be deemed ineligible if it derives more than 10% of its revenue, either directly or indirectly, from the following products or services: Adult Entertainment, Alcohol, Firearms, Gambling, Military Contracting, Nuclear Power, Tobacco.

06.2. Describe how the screening criteria are established, how often the criteria are reviewed and how you notify clients and/or beneficiaries when changes are made.

The criterias have been established in concert with a group of Fiera's clients and a consultant that share common values around these activities. They have been in place for more than 15 years. By setting a maximum limit of 10% we establish a threshold for companies having significant operations in the products or services deemed unethical (pure-play) versus companies with minor implications in the products or services through subsidiaries or complex ownership structures.

We review the screened companies on a quarterly basis, and clients may have access, upon request, to the details when changes are made.


LEI 07. Processes to ensure screening is based on robust analysis

07.1. Indicate which processes your organisation uses to ensure screening is based on robust analysis.

07.2. Additional information. [Optional]

The screens were previously performed by Sustainalytics. The company is a pioneer in research on environmental, social and governance issues and on responsible investments in general. With over 130 employees, including 70 analysts, they have the process in place to insure the quality of the research and the robustness of the screening provided to Fiera Capital.

At the end of 2016, we changed our partnership from Sustainalytics to MSCI ESG Research. Starting in 2017, the screen will now be done using MSCI.

Also, the list of screened companies is reviewed on a quarterly basis by the CIO Office to ensure that the sectors of activities/product involvement of the companies deemed ineligible correspond to the reality of the company's operations.


LEI 08. Processes to ensure fund criteria are not breached (Private)


(B) Implementation: Thematic

LEI 09. Types of sustainability thematic funds/mandates

09.1. Indicate the type of sustainability thematic funds or mandates your organisation manages.

09.2. Describe your organisation’s processes for sustainability themed funds. [Optional]

Previously a Fossil Fuel Free mandate, which prohibited investments in companies involve in Oil & Gas exploration and production, the mandate now prohibit any investments in the Energy sector.


(C) Implementation: Integration of ESG issues

LEI 10. Review ESG issues while researching companies/sectors

10.1. Indicate if E, S and G issues are reviewed while researching companies and/or sectors in active strategies.

ESG issues

Coverage/extent of review on these issues

Environmental

Environmental

Social

Social

Corporate Governance

Corporate Governance

10.2. Additional information. [Optional]


LEI 11. Processes to ensure integration is based on robust analysis (Private)


LEI 12. Aspects of analysis ESG information is integrated into (Private)


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