Fidelity builds out HNW offering

Fidelity Investments Canada has launched three new investment solutions, including one fixed income fund and two new additions to its Fidelity also announced two additions to its high net worth-focused Private Investment Program.

“Since its launch in November 2008, the Fidelity Private Investment Program has attracted over $2.3 billion in sales,” said Craig Strachan, vice-president, head of product, Fidelity Investments Canada ULC.

So far the Private Investment Program has attracted more than 2,200 financial advisors and 10,000 high net-worth investors.

The firm has launched a new Canadian value-oriented, large cap equity pool aimed at mitigating downside risk. The Fidelity Concentrated Value Private Pool, is managed by Daniel Dupont, manager of the Fidelity Canadian Large Cap Fund.

While it is primarily a Canadian equity mandate, Dupont may invest up to 49% of its assets in U.S. and international securities. Holdings will typically be concentrated in 20-50 securities.

The company also added a new capital yield version of Fidelity Tactical Fixed Income Fund to the Fidelity Private Investment Program: the Fidelity Premium Tactical Fixed Income Capital Yield Private Pool.

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.

Outside of the HNW space, Fidelity announced the launch of the Fidelity Tactical Fixed Income Fund offers investors potential for higher return and higher yield than a pure investment grade bond fund.

The fund is co-managed by Brian Miron and Jeff Moore, who have 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.

“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.”

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.