(Bloomberg) -- Power Sustainable, a climate-focused firm that’s controlled by Montreal’s billionaire Desmarais family, is shutting its investment management operations in China and winding down its public equities strategy in the country. 

The decision was disclosed in a filing Wednesday by parent Power Corp. of Canada, which is taking a restructuring charge of C$12 million ($8.8 million). Power Sustainable has liquidated the Chinese stock portfolio and plans to return the money to investors, it said. 

Power Sustainable “is focused on growing its alternative asset management business primarily through fundraising third-party capital,” Power Corp. said.

The sustainable investment arm, which is run by Olivier Desmarais, lost C$33 million in the first quarter from asset management and investment activities, according to an investor presentation. The unit had C$3.8 billion in assets under management as of March 31, according to a company statement.  

Read More: Billionaire Desmarais Family Quietly Reshapes a Financial Empire

The decision to exit China equities is a positive one, “given this platform added to earnings volatility,” TD Cowen analyst Graham Ryding said in a note. Proceeds from liquidating the portfolio were about C$500 million, he estimated, which can help fund share buybacks.   

The Power group maintains a presence in China though its 28% stake in China Asset Management Co., one of the country’s biggest money managers. 

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