The program
428M$ CA
Assets under management as of July 31st, 2023
14
Selected managers
2
Classes
The QEMP grants structured investment mandates to new firms and offers a mentorship framework.
Unique in the world, this project enables institutional investors to access alpha diversifying investment strategies while investing locally.
Traditional class
An asset allocation of 30% bonds / 70% equities innovative, diversified and with a “standard” level of risk that includes niche management mandates (small cap equities, corporate bonds) and various management styles: value, growth innovative approaches: use of different investment vehicles (ETF), masses of market data, AI.
Alternative class
The allocation is diversified through long/short equity strategies, an event-driven strategy and an arbitrage strategy on the electricity markets. The target volatility of the program is 6 to 8%.
Quebec Emerging Manager Program (QEMP)
In 2016, Innocap and Finance Montréal launched the QEMP.
his project was developed in connection with the Finance Montréal’s Entrepreneurship Work Group, in collaboration with established portfolio management firms in Quebec, under the leadership of Vital Proulx and Stéphane Corriveau.
Objectives
Support the ecosystem
Encourage best practices
Promote local managers
Benefits
- In-depth due diligence and a rigorous process for selecting emerging managers;
- Institutional fund structure and continuous monitoring ensured by Innocap, reducing the potential for operational risks associated with emerging managers;
- Allows institutional investors’ in-house teams to focus on investment management and thus delegate operational, risk, legal and compliance functions to managed account experts;
- Participate in the growth and contribute to the success of new investment strategies proposed by Quebec-based managers.
- Obtain significant mandates while avoiding dilution of their company’s capital;
- Benefit from an institutional structure and support to ensure the sustainability of their firm;
- Allow managers to focus on portfolio management fonctions;
- Receive support and recognition from the financial community.
The investor participates directly in the social component of the ESG:
- Investing in a sustainable Quebec economy and the success of tomorrow’s great managers;
- Job creation and local economic impacts;
- Retain and attract talent.
Institutional governance
Emerging managers benefit from a disciplined governance structure leveraging the expertise of the industry’s great builders, established and qualified players.
Composed of industry leaders, QEMP’s advisory board’s mission is to provide guidance on manager selection and composition of the asset allocation policy. QEMP is proud to count on the support of the following renowned market contributors:
- Robert Auger, FMOQ
- Guy Beaulieu, PBI
- Pierre Bélanger, CPEGQ
- Jean Bergeron, LifeWorks
- Louise Charette, Consultante
- Michel Charron, Aon
- Sam Clemente, Eckler
- Stéphane Corriveau, AlphaFixe
- Brian Cyr, Claridge Inc.
- Amélie Dugas-Sampara, Fonds de solidarité FTQ
- Jean-François Dumais, Bâtirente
- Jimmy Fortin, Desjardins Gestion internationale d’actifs
- Gia-Buu Lai, Desjardins
- Marc Christopher Lavoie, Desjardins Gestion internationale d’actifs
- Charles Lemay, Walter-GAM
- Antony Sauvageau, Banque Nationale du Canada
- Jean-Pierre Talon, Mercer
- Isabel Trépanier, Hydro-Québec
- Dominic Vallée, Normandin Beaudry
- Luc Verville, FondAction CSN
Members of the board of directors
- Jean-François Bernier, Directeur général (Interactive Brokers), à titre de président du conseil
- Carolyn Cartier-Hawrish, Directrice (PGEQ) à titre d’administratrice
- Odrée Ducharme, Première directrice, Stratégie et exécution, Fonds d’investissement et gestion externe (CDPQ) à titre de vice-présidente du conseil
- Claude Lockhead, Conseiller principal (Fiera Capital) à titre d’administrateur
- Christel Maignant, Gestionnaire de portefeuille principale, sélection et suivi des gestionnaires externes (Desjardins Gestion internationale d’actifs) à titre d’administratrice
- Sébastien Rhéaume, Directeur principal (AlphaFixe), à titre de trésorier
- Luc Verville, Chef des placements, Marchés publics (Fondaction) à titre d’administrateur
Founding members
The QEMP would like to thank the founding members who largely contributed to the inception of the program, providing emerging portfolio managers their opportunity to shine.
- Jacques Bourgeois, HEC Montréal
- Robert Brunelle, Hexavest Inc.
- Mario Delisle, Aon Hewitt
- Mario Lavallée, Université de Sherbrooke
- Pierre Parent, Normandin Beaudry
- Vital Proulx, Hexavest Inc. and responsible of the QEMP within the Entrepreneurship project of Finance Montréal
Institutional investors are notably composed of pension plans, insurance companies, endowments and other financial institutions. Currently, these Canadian allocators have the opportunity to invest in one or both programs. In addition, they will soon be able to design their own allocation by individually selecting any number of the underlying asset managers.
Since 1996, the Innocap Group has offered managed account solutions to a global institutional client base seeking high standards of governance. In addition to its structuring and due diligence expertise during manager selection, the group provides daily supervision of fund operations, customized risk management services and independent governance. Innocap’s model provides investors with in depth data transparency, including a breakdown of their assets, investment strategy compliance and centralized monitoring of service providers. Innocap sets itself apart in the industry through its expertise, flexibility and state-of-the-art technology.
In order to assume the role of administrator, banker, auditor, external legal counsel and broker, renowned partners have been retained. QEMP benefits from the support of the following service providers:
- BMO
- Apex Fund Services
- CIBC
- PriceWaterhouseCoopers LLP
- JP Morgan
- Osler, Hoskin & Harcourt LLP
- Société Générale
- Banque de Nouvelle-Écosse
- Newedge
- Northern Trust
Responsible investment is part of the mission, values and practices of PGEQ.
- All our managers are signatories to the United Nations Principles for Responsible Investment (UNPRI).
- Voluntary participation in the Montreal Carbon Pledge.
- Mentoring collaboration with local universities in Finance.
- Integration of ESG factors in fundamental research reports and improvement of screening processes based on ESG criteria.