Fidelity Investments Canada ULC announces proposed enhancements to several fund products

TORONTO, Sept. 22, 2015 /CNW/ - Fidelity Investments Canada ULC ("Fidelity Investments") today announced proposed enhancements to its mutual and pooled fund lineup.

In order to implement the enhancements, changes will need to be made to the investment objectives of the funds described below. In the case of mutual funds, investors will be asked to vote on the changes at special meetings to be held on November 30th in Toronto (the "Special Meetings"). Details of the Special Meetings and the proposed changes will be contained in an information circular and proxy package that will be mailed to investors of record in early November.         

The key details of the proposed enhancements follow:  

Fidelity ClearPath® Retirement Portfolios

The Fidelity ClearPath® Retirement Portfolios are designed to help investors achieve their retirement goals. Other than the Fidelity ClearPath® Income Portfolios, each ClearPath® portfolio uses an asset allocation approach that automatically adjusts its neutral asset mix based on the Portfolio's investment time horizon. Fidelity Investments wishes to enhance the relevant ClearPath® Portfolios in a number of ways, including by updating the "glide path". A "glide path" is the manner in which the asset mix becomes more conservative as time passes to help the relevant ClearPath® Portfolios achieve their goal of income replacement by the target date. Also, each of the ClearPath® Portfolios currently invests substantially all of its assets in other funds managed by Fidelity Investments. The proposed investment objectives would continue to provide for this but also allow the portfolio managers to invest in other types of investments such as exchange traded funds and certain derivatives such as futures contracts. Other changes also being proposed include the introduction of an active asset allocation approach and an extension of the "roll down" periods, where applicable, from approximately 10 years to approximately 20 years.

The primary goal of Fidelity's ClearPath® suite of products will remain the same. However, the proposed enhancements will: (i) help to increase diversification; (ii) give the portfolio management team more flexibility to take advantage of investment opportunities and (iii) potentially improve retirement outcomes for Canadian investors through greater risk-adjusted returns and more efficient portfolio management.

Fidelity Managed Portfolios and Balanced Private Investment Pools

Each of these funds offers diversification of investments through asset allocation in a single investment. Fidelity Investments is proposing to change the investment objectives of these funds to provide portfolio managers with greater flexibility in selecting investments. For example, these funds currently invest substantially all of their assets in other funds and/or pools managed by Fidelity Investments. The proposed investment objectives would continue to provide for this but also allow portfolio managers to invest in other types of investments such as exchange traded funds and certain derivatives such as futures contracts. Enabling the portfolio managers to access other types of investments could potentially help the portfolios obtain further diversification, greater risk-adjusted returns and more efficient portfolio management.

Fidelity Latin America

Fidelity Investments is proposing to reposition this fund to enable it to invest more broadly in frontier markets and emerging markets rather than maintaining a focus on Latin American markets.  A "frontier market" is a type of developing country which is more developed than the least developed countries, but not as economically developed as those countries defined as emerging markets.  Repositioning this fund to invest in more markets offers a greater range of potential investment opportunities across a diverse set of markets and industries. The Latin America investment universe, as defined by the MSCI EMF Emerging Markets index has a high concentration of issuers among financials, energy, and materials companies, and therefore has a high degree of similarity to the industry exposure Canadian investors realize through their domestic equity investments. Fidelity Investments believes that a fund with an investment focus on frontier markets and emerging markets will provide greater diversification benefits to a Canadian investor's portfolio.  If the proposal is approved the name of the fund will become Fidelity Frontier Emerging Markets Fund on the effective date of the changes.

Full list of funds covered by this release

ClearPath® Retirement Portfolios



Fidelity ClearPath® 2005 Portfolio


Fidelity ClearPath® 2010 Portfolio


Fidelity ClearPath® 2015 Portfolio


Fidelity ClearPath® 2020 Portfolio


Fidelity ClearPath® 2025 Portfolio


Fidelity ClearPath® 2030 Portfolio


Fidelity ClearPath® 2035 Portfolio


Fidelity ClearPath® 2040 Portfolio


Fidelity ClearPath® 2045 Portfolio


Fidelity ClearPath® 2050 Portfolio


Fidelity ClearPath® 2055 Portfolio


Fidelity ClearPath® Income Portfolio




All ClearPath® Retirement Portfolios established as pooled funds

Fidelity Managed Portfolios and Balanced Private Investment Pools 



Fidelity Income Portfolio


Fidelity Global Income Portfolio


Fidelity Balanced Portfolio


Fidelity Global Balanced Portfolio


Fidelity Growth Portfolio


Fidelity Global Growth Portfolio



Fidelity Income Class Portfolio


Fidelity Global Income Class Portfolio


Fidelity Balanced Class Portfolio


Fidelity Global Balanced Class Portfolio


Fidelity Growth Class Portfolio


Fidelity Global Growth Class Portfolio



Fidelity Balanced Income Private Pool


Fidelity Balanced Income Currency Neutral Private Pool


Fidelity Balanced Private Pool


Fidelity Balanced Currency Neutral Private Pool


Fidelity Latin America Fund

About Fidelity Investments

Fidelity Investments Canada ULC is part of the Fidelity Investments organization of Boston, one of the world's largest providers of financial services. Recipient of the 2014 Morningstar Advisors' Choice Fund Company of the Year, Fidelity Canada manages a total of $108 billion in mutual fund and institutional assets. This includes $20 billion in assets for institutional clients including public and corporate defined benefit and defined contribution pension plans, sub advised mandates, endowments, foundations and other corporate assets on behalf of clients across Canada as at August 31, 2015.

Fidelity Canada provides Canadian investors a full range of domestic, international and income-oriented mutual funds, as well as asset allocation and managed solutions and the high net worth program, the Fidelity Private Investment Program. Fidelity Funds are available through a number of advice-based distribution channels including financial planners, investment dealers, banks, and insurance companies. Fidelity is a proud supporter of the Boys and Girls Clubs of Canada and we are dedicated to helping young Canadians realize their full potential as productive, responsible and caring citizens.

SOURCE Fidelity Investments Canada ULC

For further information: Chris Pepper, Vice President, Corporate Affairs, Fidelity Investments Canada ULC, T: 416-307-5388, M: 416-795-7762, E: chris.pepper@fmr.com


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