Fidelity Launches New Investment Solutions Geared Towards Conservative and High Net-Worth Investors

May 09, 2012, 07:30 ET from Fidelity Investments Canada Limited

~ Fidelity Tactical Fixed Income Fund offers fixed income diversification with potential for higher yield;
Fidelity Concentrated Value Private Pool expands Fidelity's high net-worth offering ~

TORONTO, May 9, 2012 /CNW/ - Fidelity Investments Canada ULC today announced the launch of three new investment solutions, spanning fixed income, capital yield and Canadian equity categories.  As well, Fidelity is expanding its successful Private Investment Program for high net-worth investors, which leverages the strength and stability of Fidelity Investments, one of the world's largest providers of financial services with more than 60 years of experience.

"Given the continued market volatility, investors and financial advisors are becoming increasingly more risk-averse and are seeking products focused on risk mitigation," said Craig Strachan, Vice President, Head of Product, Fidelity Investments Canada ULC. "We are also seeing growth in the high net-worth sector, with investors and advisors looking for investment strategies and solutions that meet their needs."

Leveraging Fidelity's expertise in non-traditional fixed income sectors

With the ability to tactically allocate across fixed income asset classes, Fidelity Tactical Fixed Income Fund provides the potential for higher return and higher yield than a pure investment grade bond fund. With over $600 billion in fixed income and money market assets under management1 Fidelity has proven experience in managing fixed income assets for clients in both the U.S. and Canada.

The Fidelity Tactical Fixed Income Fund is a diversified core fixed income fund with the flexibility to tactically invest up to 40% of the portfolio in U.S. high yield securities, global bonds, emerging markets debt, U.S. floating rate debt instruments and other types of fixed income securities. Fidelity's research shows that allocating to these other fixed income market segments can bring diversification benefits with the potential to add yield.

"In today's low interest rate environment, investors are looking for additional income, but are also worried about the possibility of rising rates," said Strachan. "Fidelity Tactical Fixed Income Fund has the flexibility to invest in other fixed income asset classes that historically have been less sensitive to rising interest rates."

Long-time Fidelity portfolio managers, Brian Miron and Jeff Moore will co-manage this fund.  Both have over 20 years of experience including managing some of Fidelity Canada's largest fixed income funds. The managers will leverage Fidelity's extensive resources around the world and will benefit from Fidelity's deep fixed income resources including dedicated teams of portfolio managers, analysts and traders focused on each of the fixed income asset classes in this fund.

"Fidelity is one of the world's largest fixed income managers, and with increasing globalization, it is critical to assess fixed income issuers through a global lens," said Strachan. "This is where Fidelity's tremendous global resources around the world come into play. Accelerating globalization brings complexity, and global fundamental research can be a pivotal difference-maker."

Providing more investment options for high net-worth program investors

Fidelity is also expanding its high net-worth Private Investment Program with the launch of Fidelity Concentrated Value Private Pool, a new Canadian equity pool that is a value-oriented, large cap strategy that aims to mitigate downside risk.

Managed by Fidelity portfolio manager Daniel Dupont, the Pool will be managed in a similar style to Dupont's award-winning Fidelity Canadian Large Cap Fund. Dupont was recently named to Finance et Investissement's annual listing of Top 25 Most Influential People in the Quebec financial services industry. The Pool will focus primarily on Canadian larger cap stocks and will have the flexibility to invest up to 49% of its assets in U.S. and international securities.  Holdings will typically be concentrated in 20-50 securities.

"Since its launch in November 2008, the Fidelity Private Investment Program has attracted over $2.3 billion in sales," said Strachan.  "More than 2200 financial advisors and 10,000 high net- worth Canadians across Canada are now using Fidelity's successful Private Investment Program to meet their investing needs.  Advisors and investors value the program for its tax efficient solutions, reduced costs, flexible fees and the resources and solid brand of Fidelity, one of the world's largest investment firms."

Additionally, the Fidelity Private Investment Program will be offering the new Fidelity Premium Tactical Fixed Income Capital Yield Private Pool, a capital yield version of Fidelity Tactical Fixed Income Fund.  This pool seeks to provide a return similar to that of Fidelity Tactical Fixed Income Fund, less transaction and hedging costs, while generating tax-preferred capital gains, thereby aiming to enhance the investor's after-tax returns.

This new capital yield product builds on the success of Fidelity's four other capital yield products:  Fidelity Corporate Bond Capital Yield Class and Fidelity Premium Fixed Income Capital Yield Private Pool, launched in September 2010, and Fidelity American High Yield Capital Yield Fund and Fidelity Canadian Bond Capital Yield Fund, launched in September 2011.

1 Fixed income assets under management as of March 31, 2012, quoted in U.S. dollars.

About Fidelity Investments

Fidelity Investments Canada ULC is part of the Fidelity Investments organization of Boston, one of the world's largest providers of financial services. 2012 marks 25 years of success in the Canadian marketplace, where Fidelity manages a total of $67 billion in mutual fund and institutional assets. This includes $13 billion in assets for institutional clients including public and corporate defined benefit pension plans, endowments, foundations and other corporate assets on behalf of clients across Canada.

Fidelity Canada provides Canadian investors a full range of domestic, international and income oriented mutual funds, as well as asset allocation and managed solutions and the high net-worth program, the Fidelity Private Investment Program. Fidelity funds are available through a number of advice-based distribution channels including financial planners, investment dealers, banks, and insurance companies. Fidelity is a proud supporter of the Boys and Girls Clubs of Canada and we are dedicated to helping young Canadians realize their full potential as productive, responsible and caring citizens.

SOURCE Fidelity Investments Canada Limited