Fidelity launches new fixed income fund, expands HNW offering

“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 Canada. “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.”

Fidelity Tactical Fixed Income Fund launched

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. The 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.

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.

More options for HNW 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. 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,” says Strachan. “More than 2,200 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.”

Additionally, the 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.