Fidelity Launches New Corporate Class Funds

~ New tax smart strategies and solutions for investors ~

TORONTO, Sept. 29, 2011 /CNW/ - Fidelity Investments Canada ULC, a leader in offering Canadian investors tax-efficient investment solutions, today 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.

"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," said Darren Farkas, Vice President, Head of Product, Fidelity Investment Canada ULC.

Fidelity's current tax-smart investment solutions include the innovative 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
  • 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. This can allow investors to enjoy tax-deferred compound growth and to potentially increase the value of their investment.

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.

"Fidelity Investments continues to be a leader in developing a full suite of tax-smart investment solutions to meet the varied tax and investment needs of our clients. This includes Fidelity's T-SWP investment options, Fidelity Capital Structure Corp. and capital yield solutions," added Farkas.

New Funds - Fidelity Monthly Income Class and Fidelity Canadian Large Cap Class

The Fidelity Monthly Income Class offers investors tax-efficient benefits and has a similar investment strategy as the popular Fidelity Monthly Income Fund.  The 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 unique combination of low-correlated asset classes that are difficult for individual investors to access on their own.  This new offering from Fidelity will appeal to investors, particularly baby boomers heading into retirement, who are looking for tax-efficient income solutions.

The 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 from Fidelity will appeal to those investors who want the long-term growth potential of a large cap fund but seek returns in a tax-efficient solution.

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. In Canada, Fidelity manages a total of $64 billion in mutual fund and institutional assets. This includes $14 billion in assets for institutional clients including public and corporate defined benefit pension plans, endowments, foundations and other corporate assets on behalf of clients across Canada.

Fidelity Canada provides Canadian investors a full range of domestic, international and income oriented mutual funds. 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 Limited

For further information:

Chris Pepper
Director, Corporate Affairs
Office: 416-307-5388
Mobile: 416-795-7762

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Fidelity Investments Canada Limited

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