Fidelity launches U.S. funds

Fidelity Investments Canada ULC has launched several U.S. mutual funds for Canadian investors.

The new options include Fidelity U.S. Monthly Income Fund, Fidelity U.S. Dividend Fund (including a currency neutral version), as well a capital yield version of the Fidelity U.S. Monthly Income Fund.

Fidelity U.S. Dividend Fund will include high-quality U.S. dividend paying equities. The fund is designed as a core holding that provides investors potential capital appreciation and income. The asset class and the fund’s U.S. dollar exposure offer diversification benefits. It’s managed by James (Jim) Morrow, who runs a similar fund for U.S. investors.

For income-seeking investors who do not want full equity exposure, Fidelity has released a U.S. Monthly Income Fund. It’s managed by Geoff Stein and Mariana Egan. Stein is one of the portfolio managers of Fidelity Monthly Income Fund. Stein and Egan are also the portfolio managers of the Fidelity Global Monthly Income Fund. While the neutral mix is 50% equity and 50% fixed income, the fund may over- or underweight asset classes to manage risk and capitalize on changing market conditions.

The final new funds are the Fidelity Tactical Fixed Income Capital Yield Fund and Fidelity U.S. Monthly Income Capital Yield Fund. The capital yield versions of these funds seek to provide a return similar to that of Fidelity Tactical Fixed Income Fund and Fidelity U.S. Monthly Income Fund, respectively, less transaction and hedging costs, while generating tax-preferred capital gains, thereby aiming to enhance the investor’s after-tax returns.

Staff

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