~ New funds will provide access and income opportunities in the world's
largest stock market ~
TORONTO, Nov. 7, 2012 /CNW/ - To help Canadian investors access the
world's largest stock market, Fidelity Investments Canada ULC today
announced the launch of new U.S. mutual funds aimed at Canadian
investors seeking income opportunities and diversification benefits in
this market. The new options include Fidelity U.S. Monthly Income
Fund, Fidelity U.S. Dividend Fund (including a currency neutral
version), as well a capital yield version of the Fidelity U.S. Monthly
Fidelity Investments organization ("Fidelity") has over 65 years of
experience in managing U.S. equity portfolios. Investors will benefit
from Fidelity's experience as well as the expertise and access of its
investment professionals including teams of portfolio managers,
research analysts and traders.
"Today, macro-economic issues like the current low-interest environment
and ongoing global economic uncertainties are top of mind for many
investors. These uncertainties can make it hard for anyone to focus on
the long-term investments," said Craig Strachan, Vice President, Head
of Product, Fidelity Investments Canada. "However, if investors look
past these uncertainties we believe that there are positives in the
markets including the health of corporate America."
The U.S. market has many stable high quality companies with strong
global brands. Interbrand's survey of the best global brands
illustrates the dominance of the U.S. - the top eight brands were all
U.S. companies, as were 14 of the top 201. Brands are powerful assets which help companies withstand uncertain
Fidelity U.S. Dividend Fund
Fidelity U.S. Dividend Fund leverages the depth and breadth of
Fidelity's fundamental research coverage to identify high-quality U.S.
dividend paying equities. The fund is designed as a core holding that
provides Canadian investors the potential for capital appreciation and
income. The asset class and the U.S. dollar exposure that the Fund
provides offer great diversification benefits for Canadian investors.
"Investing with a focus on dividend-paying stocks has historically
delivered a number of desirable outcomes," said Strachan. "Many
companies in the U.S. currently have a high level of cash on their
balance sheets, which may increase their capacity to pay dividends.
Given these conditions, we believe this is an excellent time for
Canadians to look at U.S. dividend fund options for their portfolios."
The fund is managed by James (Jim) Morrow who runs a similar fund for
U.S. investors. He began his career at Fidelity in 1998 as a research
analyst and has extensive experience managing funds for investors in
the United States. Morrow works closely with his team to search out the
best ideas from Fidelity's extensive research network, focusing
primarily on a company's financial stability, potential to generate
sustainable return on equity over time and valuation when deciding to
invest in the company.
Fidelity's suite of monthly income funds
For income-seeking investors who do not want full equity exposure,
Fidelity U.S. Monthly Income Fund joins Fidelity Investments Canada's
existing suite of monthly income funds, including Fidelity Monthly
Income Fund and Fidelity Global Monthly Income Fund. This new fund is
another option for investors looking for regular income and the
potential for capital appreciation. Fidelity Investments Canada's suite
of monthly income funds provides investors a way to increase the
diversification of their portfolios by asset class, geography, industry
Managing Fidelity U.S. Monthly Income Fund are Geoff Stein and Mariana
Egan. Stein is one of the portfolio managers of Fidelity Monthly
Income Fund. Stein and Egan are also the portfolio managers of the
Fidelity Global Monthly Income Fund. Both are asset allocation experts
that leverage Fidelity's extensive global macro research. While the
neutral mix is 50% equity and 50% fixed income, the fund may over- or
underweight asset classes to aim to manage risk and seek to capitalize
on changing market conditions.
Providing more tax-efficient options for income investors
Fidelity Investments Canada is also expanding its capital yield offering
by launching Fidelity Tactical Fixed Income Capital Yield Fund and
Fidelity U.S. Monthly Income Capital Yield Fund. The capital yield
versions of these funds seek to provide a return similar to that of
Fidelity Tactical Fixed Income Fund and Fidelity U.S. Monthly Income
Fund, respectively, less transaction and hedging costs, while
generating tax-preferred capital gains, thereby aiming to enhance the
investor's after-tax returns.
These new capital yield products build on the success of Fidelity
Investments Canada's other capital yield products which have had great
support from investors and advisors.
"One of the many challenges financial advisors face is educating their
clients on how they can meet their retirement goals. It's not easy
finding options that could provide the cash flow for an investor's
retirement. At the same time it is easy for investors to underestimate
not only how much income they will need, but also how long they will
live in retirement," said Strachan. "Financial advisors have a pivotal
role in helping their clients understand this dichotomy, and in today's
low interest rate environment it's important to consider options that
provide exposure outside of Canada."
Read a fund's prospectus before investing. Mutual funds are not
guaranteed; their values change frequently and past performance may not
be repeated. Investors will pay management fees and expenses, may pay
commissions or trailing commissions and may experience a gain or loss.
1 Interbrand Best Global Brands Report, October 2012
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. 2012 marks 25 years of success in the Canadian
marketplace, where Fidelity manages a total of $68 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 Investments 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 Investments Canada 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:
Vice President, Corporate Affairs