About us

Industry Observations

Challenges faced by market participants
Institutional Investors Needs
  • Finding new sources of return is a must; this is becoming more difficult as the offerings of market participants converge;
  • Due-diligence reviews are time-consuming and costly; and
  • Fiduciary risk remains a challenge for the investment process for institutional investors.
Emerging Managers Services
  • A first institutional mandate is very difficult to obtain;
  • Building a fund structure and operational framework appealing to institutional investors is burdensome; and
  • Institutional fund governance and compliance requires in-depth knowledge and expertise.

Result

Incompatibility between institutional investors’ needs and emerging firms offering , this results in a situation of inertia that hinders the development of new asset managers.

Quebec Emerging Manager Program

Quebec's asset management industry united to fill the gap
Origin
  • Created by the Entrepreneurship work group of Finance Montreal, a cluster composed of financial institutions, and other market participants led by Messrs. Vital Proulx and Stéphane Corriveau; both wellestablished investment management firms from Quebec.
Mission
  • To offer investment strategies to institutional investors seeking to diversify their sources of alpha by using emerging managers;
  • To promote entrepreneurship in finance by granting mandates to emerging managers; and
  • To offer operational and structural support to new asset managers.

Advantages

For institutional investors
  • Thorough due diligence reviews and careful selection of emerging managers;
  • Institutional fund structure created and managed by Innocap, reducing operational risks that may be linked to emerging managers;
  • Allows internal teams to focus on investment functions and to delegate operational, risk, legal and compliance functions to managed accounts experts; and
  • Participate in the growth and success of new investment strategies from Quebec managers.

 

For emerging managers
  • Acquire important mandates without losing any equity in their firm;
  • Gain better governance structure and support to ensure firm sustainability;
  • Allows asset managers to focus on investment activities; and
  • Obtain the support/recognition of the financial community.
Responsible investment is part of the QEMP's mission, its values and its practices. Consequently, the managers selected will have to take into account environmental and social factors as well as those relating to governance (ESG) in connection with the execution of their management mandate.