Despite recent lay-offs at Toronto-based Fidelity Investments Canada ULC, the fund company is gearing up for better times with the much-anticipated move of its “Team Canada,” as well as a newly launched investment-management program for high net-worth clients.

The 25 portfolio managers and research analysts who make up Team Canada are in the process of moving to offices in Toronto and Montreal, after 12 years of operating out of Boston, the hometown of Fidelity’s parent company, Fidelity Investments.

The team manages some of the most successful Canadian mutual funds, including Fidelity True North, Fidelity Canadian Disciplined Equity Fund and Fidelity Canadian Balanced Fund.

With many of the managers originating from Canada, the move represents an opportunity for them to bring their families home.

Along with this news, came the announcement that Bob Haber, former chief investment officer and a 24-year veteran with Fidelity, will not be joining the team that he has been assembling since 1997.

“Team Canada is one of the greatest successes of my career at Fidelity,” Haber says. “But I feel it is just time for me to take a step back and move on to something new. I do know that I will continue to have an ongoing relationship with Fidelity. It just won’t be on an active day-to-day basis.”

Replacing Haber in leading the Canadian team is Andrew Marchese, director of research and head of Canadian equities for Team Canada and portfolio manager on a number of Fidelity’s Canadian funds. Haber’s fund assignments have already been transferred to experienced Fidelity portfolio managers, including Marchese. Marchese has taken the lead manager position for Fidelity Canadian Disciplined Equity Fund.

“I see this as an extremely positive move, from a business-development perspective,” Marchese says. “This has been a long-standing trend within the company, putting research locations closer to their home markets — and I’m excited to be a part of it.”

Fidelity Canada reported long-term mutual fund net sales of more than $2.6 billion in 2008. As well, it has seen its institutional arm, Pyramis Global Advisors, move up to the 20th spot among the largest institutional asset managers in Canada, from 30th in 2006.

Fidelity is aiming to continue its growth in Canada with the Fidelity Private Investment program, an exclusive program launched in early January designed specifically for high net-worth investors. Already, the program has brought in more than $80 million in assets.

“We did research and found that investors with $500,000 and more in investible assets form a growing market,” Marchese says. “With this program, we are able to bring them institutional-style products.”

With Fidelity showing positive sales early in 2009, Marchese wants to ensure his team stays on track while its members continue to grow as individuals.

“These are people who are extremely passionate about the stock market and investing in all economic climates,” Marchese says. “Whether it is good or bad, the climate poses challenges on which our team thrives — and it is that challenge that keeps team members naturally engaged.”

The team is made up primarily of Canadians who were part of successful recruiting campaigns throughout the years. Haber began the process in 1998, the same year he hired Marchese as an equities research associate.

Marchese has every intention of continuing to recruit and is looking to Canadian business schools in hopes of finding at least one or two strong candidates a year. Over the years, Haber became a mentor to Marchese and the two have worked closely, along with Team Canada portfolio managers, analysts and clients, to ensure a seamless transition.

“Recruiting and mentoring are extremely important aspects of the Fidelity culture,” Marchese says, “and Bob has always instilled in every team member that this is a black-and-white business and that performance matters. You can’t get away from that. He has always shown us that you have to do your best for your clients because they are the most important thing in this business.”

With big shoes to fill, Marchese hopes he will be able to maintain the momentum and provide the same environment that Haber has for the past 12 years.

“I always hope for investment excellence — and doing the best we can for our clients, that is my top priority.” he says. “But I also want to maintain a culture of meritocracy, to be able to retain the best talent and reward the best talent, just like Bob has done.”

@page_break@The Canadian offices are the latest in a string of new Fidelity offices around the world, including London and Hong Kong. Team Canada is expected to complete the transition from Boston by the fourth quarter.
IE