Striking a balance with income and equity: Fidelity Investments Canada ULC introduces two new high income ETFs; New U.S. equity fund

TORONTO, Jan. 22, 2020 /CNW/ - Fidelity Investments Canada ULC ("Fidelity"), one of Canada's top investment management firms, today launched two new high income actively managed ETFs and ETF Funds, Fidelity Canadian Monthly High Income ETF, Fidelity Global Monthly High Income ETF, Fidelity Canadian Monthly High Income ETF Fund and Fidelity Global Monthly High Income ETF Fund. The ETFs will commence trading today on the Toronto Stock Exchange. Fidelity also announced the launch of a new U.S. equity fund, Fidelity U.S. Growth Opportunities Class.

"With ever increasing demand among investors for steady monthly income, we're pleased to launch the Fidelity Monthly High Income ETFs, leveraging the best of the Fidelity Investments organization's world-class resources with experienced portfolio managers and our abiding commitment to investors' long-term success," said Kelly Creelman, Senior Vice President, Products, Fidelity Investments Canada ULC. "In just over 14 months since we first launched our ETFs in Canada, Fidelity's ETF lineup now stands at 45 ETFs and ETF Funds with over $1 billion assets under management.*"    

Fidelity's new ETFs are designed for investors who are looking to achieve a steady flow of income with the potential for capital gains. Specific benefits for investors include:

• Active management: Fidelity Monthly High Income ETFs and ETF Funds are actively managed by experienced portfolio managers Geoff Stein, David Wolf and David Tulk, members of the Fidelity Investments organization's Global Asset Allocation team. 
• Diversification: The Global Asset Allocation team actively allocates the investments within the portfolio to maintain a balance of risk and return.
• The power of reinvesting: Whether investors are saving for retirement or building wealth, reinvesting monthly distributions can help them to reach their goals faster through the power of compounding.

Fidelity Canadian Monthly High Income ETF (FCMI): This mandate aims to achieve a steady flow of income with the potential for capital gains by using an asset allocation approach. It invests primarily in underlying funds. These underlying funds generally invest in a mix of Canadian and foreign equity securities and fixed income securities, with generally more emphasis on Canadian equity and fixed income securities.

Fidelity Global Monthly High Income ETF (FCGI): This mandate aims to achieve a steady flow of income with the potential for capital gains by using an asset allocation approach. It invests primarily in underlying funds. These underlying funds generally invest in global equity securities and fixed income securities.

These new ETFs are also available in competitively priced mutual fund versions. Series F management fee ranges between 0.50% to 0.55%** and Series B management fee ranges between 1.50% and 1.55%**.

Fidelity is also launching Fidelity U.S. Growth Opportunities Class, managed by experienced portfolio manager Kyle Weaver who joined the Fidelity Investments organization in 2008 and has been in the financial industry since 2001. Weaver has a strong ability to identify secular trends, looking for business models that can create significant value for shareholders over a three- to seven-year time period. He targets companies that have lower valuations relative to their perceived long-term earnings potential and brings a valuation-conscious approach to growth investing.

"Fidelity has a long history of developing and offering strong investment products that are designed to meet the demands of advisors and to help fulfill investors' financials goals. The launch of Fidelity U.S. Growth Opportunities Class offers Canadian investors another strong U.S. equity option to help them achieve their financial goals." said Creelman. "Kyle has built a strong reputation managing funds for U.S. investors and we are very excited to be bringing his expertise to Canadian investors."

Fidelity U.S. Growth Opportunities Class will be available in both a U.S. dollar option and a systematic currency hedged version.

For more information, visit fidelity.ca

*As at December 31, 2019. This includes ETF and ETF Funds assets under management
** Each of the Fidelity Monthly High Income ETF Funds also pay a fixed administration fee and certain fund costs as described in these Funds' simplified prospectus.

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 $142.4 billion in assets under management (as at December 31, 2019) and they include individuals, financial advisors, pension plans, endowments, foundations and more.

We are proud to provide investors a full range of domestic, international and global equity and income-oriented mutual funds, ETFs, asset allocation strategies, managed portfolios, sustainable investing products and a high net worth program. Fidelity is available through a number of advice-based distribution channels including financial planners, investment dealers, banks, and insurance companies.

Read a fund's prospectus and consult your financial advisor before investing. Mutual funds, including exchange-traded 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.

Find us on social media @FidelityCanada

SOURCE Fidelity Investments Canada ULC

Chris Pepper, Vice-President, Corporate Affairs, Fidelity Investments Canada ULC, T: [phone], M: [phone], E: [email protected]

Related Links

http://www.fidelity.ca