Fidelity launches suite of managed portfolios

Fidelity Investments announced today the launch of Fidelity Managed Portfolios, a suite of six risk-targeted fund-of-fund wrap portfolios that offer Canadian investors more choices, global opportunities and access to unique sectors.

Fidelity’s Managed Portfolios strategically invest in a combination of equities and fixed income securities, providing full diversification across asset classes, geography and sectors. The portfolios are available to financial advisors and investors on April 18.

“Fidelity Managed Portfolios are differentiated from others in the marketplace because they offer investors a range of global portfolio solutions and include access to unique sectors such as global real estate and currency-neutral global fixed income,” said Darren Farkas, vp, product solutions, Fidelity Investments Canada, in a news release. “Investors can also benefit from Fidelity’s extensive range of tax-efficient solutions and enhanced reporting capabilities.”

These new portfolios build on Fidelity’s successful suite of wrap solutions including Fidelity ClearPath Retirement Portfolios (lifecycle solutions) and Fidelity ClearPlan Custom Fund Portfolios (customizable wrap solutions).

All of the Fidelity Managed Portfolios invest in a mix of Canadian, U.S. and international equities and bonds including global real estate. There are six portfolios that meet the full range of investors’ needs, risk tolerances and investment criteria.

Fidelity Income Portfolio is for the investor who needs income today, while at the same time is looking for some long-term capital appreciation. This investor typically has a low-to-moderate risk tolerance.

Fidelity Global Income Portfolio offers investors with a low-to- moderate risk tolerance a regular income stream from a geographically diverse portfolio.

Fidelity Balanced Portfolio offers investors a combination of capital preservation and growth potential with moderate risk levels.

Fidelity Global Balanced Portfolio is for the investor who desires a balanced approach to investing with a global bias. This portfolio also assumes a moderate level of risk to achieve its goals.

Fidelity Growth Portfolio offers balanced exposure to both Canadian and global markets with strong growth potential. This portfolio is for the investor that is typically willing to take on a moderate-to-high level of risk to achieve their goals.

Fidelity Global Growth Portfolio capitalizes on the rapid pace of growth around the world. This portfolio is for the investor with a moderate-to-high risk tolerance looking for global growth potential.

The Portfolios are managed by Fidelity’s asset allocation team, led by co-portfolio managers — Mark Friebel and Mariana Egan. The team uses Fidelity’s proven proprietary asset allocation process to achieve optimal portfolios based on forward looking risk/return expectations.

Along with asset allocation and diversification, Fidelity Managed Portfolios offer investors regular rebalancing and daily monitoring of risk and return characteristics to ensure the portfolios consistently meet their investment objectives. Investors also receive access to enhanced reporting to monitor on-going investment needs and performance.

All six Fidelity Managed Portfolios are offered in both capital class versions within Fidelity’s Capital Structure as well as within Fidelity’s Tax-efficient Systematic Withdrawal Plan (T-SWP). For investors looking for tax-efficient savings, they should consider Fidelity Capital Structure, a non-registered product offering that provides the “registered plan advantage” of maximized compound growth potential through the deferral of capital gains taxes. For investors interested in tax-efficient cash flow streams, Fidelity’s T-SWP 5% or 8% options offer income solutions for non-registered assets.

The financial advisor plays an instrumental role in the investment decision process by using Fidelity’s Investor Profile Questionnaire, Investment Policy Statement and enhanced reporting to customize the solution for their clients. Fidelity Managed Portfolios are a single ticket solution with a $25,000 minimum investment required for all portfolios.