Fidelity Investments Canada ULC Thursday announced the launch of two new products: Fidelity Monthly Income Class and Fidelity Canadian Large Cap Class.

These new products combine the benefits of Fidelity’s global investment research resources and asset allocation abilities with the tax advantages of Fidelity’s Capital Structure Corp.

Fidelity Monthly Income Class offers investors tax-efficient benefits and has a similar investment strategy as Fidelity Monthly Income Fund. Fidelity Monthly Income Class aims to provide a balance of income and growth primarily through investments in higher yielding equity and fixed income securities. It offers diversification benefits through a combination of low-correlated asset classes that are difficult for individual investors to access on their own. This new offering aims to appeal to investors, particularly baby boomers heading into retirement, who are looking for tax-efficient income solutions.

Fidelity Canadian Large Cap Class, which has a similar investment strategy as the Fidelity Canadian Large Cap Fund, also offers investors tax-efficient benefits. Fidelity Canadian Large Cap Class aims to deliver long-term growth by providing exposure to Canadian and international large and mid- capitalization companies. This new offering aims to appeal to those investors who want the long-term growth potential of a large cap fund but seek returns in a tax-efficient solution.

“Increasingly, Canadians are looking for investment strategies that can help grow their portfolios, reduce their current tax bill and provide tax-efficient income. These goals become even more important as Canadians head into retirement and start to withdraw from their savings,” says Darren Farkas, vice president, head of product, at Toronto-based Fidelity Canada.

Fidelity’s current tax-smart investment solutions include the Fidelity Tax-Smart Withdrawal Program (T-SWP) and the Fidelity Capital Structure Corp. At present, this program includes: 33 Fidelity trust funds which offer 5% and/or 8% T-SWP options; 80 Fidelity funds and pools offered in Corporate Class structure; 53 Fidelity funds and pools offered in T-SWP Class options; and four Fidelity Capital Yield Funds and Classes

Fidelity Capital Structure Corp. (FCSC) offers investors the flexibility to switch their shares from one class fund to another class fund within the FCSC without triggering immediate tax consequences.

Fidelity T-SWP allows investors to receive tax-efficient cash flow from their non-registered investments. It can serve as an alternative to a traditional systematic withdrawal program (SWP), or as a complement to other cash flow strategies within the FCSC. Most or all of the cash flow investors receive through Fidelity T-SWP is a return of the investor’s original capital which allows capital gains tax to be deferred.

IE