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(Bloomberg) — Canadian asset manager Fiera Capital Corp. is losing a C$5.5 billion ($4 billion) mandate as another fund manager ends its sub-advisory deal with the firm. 

Fiera announced Friday that Canoe Financial LP will end the companies’ arrangement in January, which involves both Fiera and PineStone Asset Management Inc., a firm run by Nadim Rizk, formerly a star money manager at Fiera.  

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Instead, PineStone will sub-advise Canoe’s C$5.5 billion mandate directly, Canoe said in a news release.

The Canoe termination continues a string of outflows that followed Rizk’s departure to start PineStone in 2022. 

Rizk had managed more than C$50 billion for Fiera in three equity strategies, with the US one generating an annualized return of more than 18% since inception in 2009 to June 30 of this year.

Jean-Guy Desjardins, founder and chief executive officer of Montreal-based Fiera Capital, said during an interview in February that Rizk had become a “source of stress” as he sought to create his own business, and a Fiera competitor could have recruited him — and his clients.

So instead, Fiera brokered a sub-advisory deal with Rizk that sees him managing equity strategies within PineStone, working out of the same office building as Fiera. 

But some clients such as National Bank of Canada that were accessing Rizk’s money-management services through Fiera are now opting to deal directly with him. Canoe is about to join that list. 

Fiera’s outflows to PineStone totaled C$13.4 billion as of Sept. 30, according to financial statements — the equivalent of 8% of Fiera’s C$166 billion in assets under management on the same date.

Canoe’s C$5.5 billion mandate accounted for 12% of the assets sub-advised by PineStone.

“Fiera Capital is executing its organic growth strategy and is confident in its ability to mitigate this AUM reduction and maintain consistent financial performance throughout 2025,” the Montreal-based company said in a news release.

Fiera’s stock price fell 6.8% to C$10.16 as of 12:26 p.m. Toronto time.

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