Toronto-based Fidelity Investments Canada ULC launched two portfolios on Wednesday designed for investors nearing or living in retirement who are expected to live longer in an investment environment clouded by low interest rates and market volatility.
Fidelity Conservative Managed Risk Portfolio is a multi-asset class product designed to mitigate investors’ exposure to market volatility while providing some equities exposure for potential capital growth. It has an asset mix of 40% equities and 60% fixed-income securities. The portfolio managers can actively allocate the fund’s mix by up to an additional 10% or a decrease of 15% for equities and an additional 15% or a decrease of 10% for fixed-income securities depending on market conditions.
Fidelity Balanced Managed Risk Portfolio is a diversified multi-asset class product designed to provide long-term capital appreciation while also aiming to mitigate investors’ exposure to market volatility. It has an asset mix of 60% equities and 40% fixed-income securities. Like the company’s new conservative portfolio, the managers for this product can actively allocate the fund’s mix by up to an additional 10% or a decrease of 15% for equities and an additional 15% or a decrease of 10% for fixed-income securities depending on market conditions.
“As Canadians close in on retirement, they want the peace of mind that the gains they’ve worked so hard to achieve can withstand the realities of today’s uncertain markets,” says Rob Strickland, president of Fidelity Investments Canada, in a statement. “[The new portfolios] are innovative investment solutions for investors seeking protection from market volatility as well as long-term performance for peace of mind throughout a longer, fulfilling retirement.”
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