Fidelity Investments Canada ULC announces fund mergers and closures

TORONTO, Dec. 10, 2015 /CNW/ - Fidelity Investments Canada ULC ("Fidelity Canada") is announcing the merger of Fidelity American Opportunities Fund and Fidelity American Opportunities Class into Fidelity American Equity Fund and Fidelity American Equity Class, respectively.

These mergers are being conducted in response to Fidelity Canada's continued effort to offer investors high quality funds in every category and class. The mergers will be conducted after the close of business on February 19, 2016. 

Concurrently, Fidelity Canada is announcing the full closure of each of the Fidelity Income Replacement™ Portfolios ("Portfolios") after the close of business on February 19, 2016. Since their launch in January 2008, demand for the Portfolios has been low, and Fidelity Canada has other investment solutions that are meeting the current needs of investors.

The details of these changes will be contained in notices that will be sent to investors in the coming weeks and can be summarized as follows:

Mergers

After the close of business on February 19, 2016 Fidelity American Opportunities Fund will be merged into Fidelity American Equity Fund and Fidelity American Opportunities Class will be merged into Fidelity American Equity Class. As a result of the mergers, investors will automatically cease to hold securities of the Fidelity American Opportunities product and will become investors in Fidelity American Equity Fund or Fidelity American Equity Class, as applicable.

The Independent Review Committee has approved the mergers. Under securities laws the mergers do not require regulatory or investor approval.

Investors may redeem from the applicable Fidelity American Opportunities product at any time up until the close of business on February 19, 2016.

Closures

After the close of business on February 19, 2016, the Portfolios named below will be closed:

Fidelity Income Replacement™ 2017 Portfolio
Fidelity Income Replacement™ 2019 Portfolio
Fidelity Income Replacement™ 2021 Portfolio
Fidelity Income Replacement™ 2023 Portfolio
Fidelity Income Replacement™ 2025 Portfolio
Fidelity Income Replacement™ 2027 Portfolio
Fidelity Income Replacement™ 2029 Portfolio
Fidelity Income Replacement™ 2031 Portfolio
Fidelity Income Replacement™ 2033 Portfolio
Fidelity Income Replacement™ 2035 Portfolio
Fidelity Income Replacement™ 2037 Portfolio

Investors in the Portfolios will be able to voluntarily switch into other Fidelity Canada mutual funds or redeem their securities prior to the closures on February 19, 2016. Also, no new purchases of securities of the Portfolios will be accepted from tomorrow, December 11, 2015.

Fidelity Canada will waive any deferred sales charges or short-term trading fees payable to Fidelity Canada in connection with either:

• Voluntary redemptions made from the Portfolios prior to February 19, 2016; or
• Automatic redemptions made as part of the closure of the Portfolios after the close of business on February 19, 2016.         

If an investor holds securities of a Portfolio in an account other than a Fidelity registered account and doesn't switch or voluntarily redeem before the close of business on February 19, 2016, their securities will be automatically redeemed. If an investor holds securities of a Portfolio in a Fidelity registered account and doesn't switch or voluntarily redeem before the close of business on February 19, 2016, their securities will be automatically switched into securities of Fidelity Canadian Money Market Fund. After the completion of these final redemption and switch transactions, each of the Portfolios will be wound-up. 

About Fidelity Canada
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 numerous industry awards, Fidelity Canada manages a total of $111 billion in mutual fund and institutional assets. This includes $19 billion in assets for institutional clients including public and corporate defined benefit pension plans, endowments and foundations and other corporate assets on behalf of clients across Canada, as at November 30, 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 a high net-worth program, 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 Limited

Chris Pepper, Vice-President, Corporate Affairs, Office: [phone], Mobile: [phone], Email: [email protected], Twitter: @Fidelity_Canada