Fidelity Investments Canada ULC today announced the launch of the Fidelity T-SWP Class U.S. dollar service. Investors using this service receive tax-efficient monthly cash flow from their non-registered investments directly to their U.S. dollar accounts at their Canadian financial institutions.

Fidelity’s T-SWP services allow investors to draw regular monthly tax-efficient payments from their non-registered investments. Until now, Canadians who vacation, travel for business or shop regularly in the U.S. have either used a U.S. dollar bank account or purchased U.S. dollars to pay for their bills, expenses and other costs while in the U.S. While convenient, both of these options have their limitations including low interest rates and high marginal tax rates on any interest earned in the accounts and potentially high currency exchange fees. Fidelity’s new T-SWP Class U.S. dollar service addresses these drawbacks and gives investors the opportunity to participate in the growth potential of the markets while easily providing them with monthly cash flow in U.S. dollars.

“Fidelity’s new T-SWP Class U.S. dollar service is a great option for the millions of Canadian snowbirds, business travelers and shoppers that travel to, or spend time in the U.S and that regularly need U.S. dollars. Canadians can now pay for their vacations, gifts and business travel in U.S. dollars with tax-efficient monthly cash flow,” says Darren Farkas, vp, Fidelity Investments Canada ULC.

Fidelity says this new service will also be of interest to the thousands of Canadians who regularly shop online with U.S retailers. By utilizing the new service and paying in U.S. dollars from their U.S. dollar bank accounts, shoppers can achieve significant savings by avoiding the currency conversion rates some credit cards and other e-payment options charge to shoppers outside of the U.S.

Fidelity’s new T-SWP Class U.S. dollar service is now available on nine classes, including Fidelity’s popular managed solution, Fidelity Managed Portfolios.

“Fidelity introduced its award-winning Fidelity Tax Smart Withdrawal Program in 2002 and is the clear market leader in mutual fund ‘return of capital’ services as measured by investor preference, market share, and brand awareness,” says Farkas. “This new service will extend Fidelity’s leadership in offering innovative tax solutions for Canadian investors.”

Fidelity is also expanding the T-SWP Class program, launched in January 2008, to now include Fidelity Global Disciplined Equity Class, part of Fidelity’s top-performing Disciplined Equity series of funds. With the addition of this new offering, Fidelity T-SWP Class is now available on 20 investment options, each with a choice of 5% or 8% payout rates.

Along with Fidelity T-SWP Class U.S. dollars, Fidelity is adding more U.S. dollar investment options to Fidelity Capital Structure Corp. A new U.S. dollar option is being added on nine classes and all six portfolios in Fidelity Managed Portfolios. Two new Canadian dollar classes are being added to Fidelity Capital Structure: Fidelity Special Situations Class and Fidelity Emerging Markets Class.

To expand choices for fee-based advisors looking for tax-efficient cash-flow solutions, a Series F option is now available on Fidelity Canadian Asset Allocation T-SWP Class and Fidelity Canadian Balanced T-SWP Class.