New offerings come as Fidelity All-in-One ETFs eclipse $1B in AUM (as at January 22, 2024)
TORONTO, Feb. 6, 2024 /CNW/ – Fidelity Investments Canada ULC (Fidelity) today launched several new investment products:
The ETFs and ETF Series will begin trading on Cboe Canada today (ticker codes listed below).
“Fidelity continues to broaden its ETF offerings to help meet growing investor demand,” said Kelly Creelman, Senior Vice President, Products and Marketing, Fidelity. “By kicking off 2024 with an array of new funds, including alternative strategies, our aim is to provide Canadians new, diversified pathways to invest their savings and achieve their financial goals.”
Introducing Fidelity Canadian Long/Short Alternative Fund and ETF Series
Fidelity Canadian Long/Short Alternative Fund is a new addition to Fidelity’s current lineup of alternative funds, all available to Canadian investors. This new Fund aims to achieve long-term capital appreciation by investing primarily in long and short positions of equity securities of Canadian companies.
Led by Portfolio Manager Reetu Kumra and backed by Fidelity’s research analysts, the team will harness both fundamental research and a rules-based approach to portfolio construction. The use of short selling is expected to be generally around 30% of the Fund’s net asset value.
Read Reetu’s Ask Me Anything (AMA) on Reddit for insights on investment research.
Key investor benefits:
-
Increased return potential – Long and short positions offer a different way to invest in Canadian equities, and have the potential to benefit from rising and falling prices of underlying securities.
-
Harness the power of Fidelity’s research – Fidelity’s proprietary research ratings are a guide to the stocks that are “buys” (longs) and the stocks that are “sells” (shorts).
-
Always-on risk management – A built-in framework to help manage risk within the portfolio.
The Fund will be available in mutual fund and ETF series (ticker: FCLS).
Diversified equity exposure through All-Equity ETFs
-
Fidelity All-Canadian Equity ETF (ticker: FCCA)
-
Fidelity All-American Equity ETF (ticker: FCAM)
-
Fidelity All-International Equity ETF (ticker: FCIN)
Fidelity All-Equity ETFs are strategically designed to provide diversified equity exposure with a regional focus. The building blocks for each All-Equity ETFs are Fidelity Factor ETFs, aimed at providing investment style factors diversification and a potential to earn higher risk-adjusted returns over traditional passive benchmarks in the long run.
The All-Equity ETFs will be sub-advised by Geode Capital Management LLC, a global systematic investment manager.
Key investor benefits:
-
Rethink passive equity: A smart way to get broad equity exposure. Our strategically designed All-Equity ETFs go beyond the traditional passive approach.
-
Diversify for opportunity: Allocations across different equity styles may help to enhance the performance potential in changing markets.
-
Regional precision: Fine tune your portfolio with targeted exposure to investments in the chosen region of Canadian, U.S. or International markets, respectively.
Fidelity All-in-One ETFs (FCNS, FBAL, FGRO, FEQT) continue to see momentum, recently surpassing $1B in assets under management (AUM), with total Fidelity ETF AUM sitting at $4.5B (as at January 22, 2024).
Expanding access: ETF Series of existing alternative mutual funds
Fidelity will be introducing ETF Series on its existing alternative strategies to broaden access for investors who prefer the ETF investment vehicle:
-
Fidelity Market Neutral Alternative Fund – ETF Series (ticker: FMNA)
-
Fidelity Long/Short Alternative Fund – ETF Series (ticker: FLSA)
-
Fidelity Global Value Long/Short Fund – ETF Series (ticker: FGLS)
Fidelity Market Neutral Alternative Fund is a relative value (pair trading) strategy that aims to capture relative value spreads amongst stocks with similar market exposure, and is managed by Portfolio Manager Brett Dley. Hear Brett discuss why investors may consider long/short investing strategies.
Fidelity Long/Short Alternative Fund is managed by Portfolio Manager David Way and seeks to capture alternative sources of alpha and reduce portfolio risk through short selling. Listen in as David explains how liquid alternatives may fit into a client’s portfolio.
Fidelity Global Value Long/Short Fund is managed by Portfolio Manager Dan Dupont and seeks to exploit mispricing of value-oriented stocks. Tune in for insights into Dan’s background, his path to Fidelity, and the principles that underpin his investing style.
About Fidelity Investments Canada ULC
At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals.
As a privately-owned company, our people and world class resources are committed to doing what is right for investors and their long-term success. Our clients have entrusted us with $221 billion in assets under management (as at January 29, 2024) and they include individuals, financial advisors, pension plans, endowments, foundations and more.
We are proud to provide investors a full range of investment solutions through mutual funds and exchange-traded funds, including domestic, international and global equity, income-oriented strategies, asset allocation solutions, managed portfolios, sustainable investing, alternative mutual funds and our high net worth program. Fidelity Funds are available through a number of advice-based distribution channels including financial planners, investment dealers, banks, and insurance companies as well as online trading platforms.
Commissions, trailing commissions, management fees, brokerage fees and expenses may be associated with investments in mutual funds and ETFs. Please read the mutual fund’s or ETF’s prospectus, which contains detailed investment information, before investing. Mutual funds and ETFs are not guaranteed. Their values change frequently, and investors may experience a gain or a loss. Past performance may not be repeated.
Fidelity Canadian Long/Short Alternative Fund, Fidelity Market Neutral Alternative Fund, Fidelity Long/Short Alternative Fund and Fidelity Global Value Long/Short Fund (collectively, the alternative funds) are alternative mutual funds. They have the ability to invest in asset classes or use investment strategies that are not permitted for conventional mutual funds. The specific strategies that differentiate these alternative funds from conventional mutual funds may include: increased use of derivatives for hedging and non-hedging purposes, increased ability to sell securities short and the ability to borrow cash to use for investment purposes. If undertaken, these strategies will be used in accordance with the alternative funds’ objectives and strategies, and during certain market conditions, may accelerate the pace at which the alternative funds decrease in value.
Find us on social media @FidelityCanada
Listen to FidelityConnects on Apple or Spotify
SOURCE Fidelity Investments Canada ULC
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/February2024/06/c4930.html
