Fidelity Investments Canada ULC is launching two new investment products designed to deliver the benefits of its worldwide research network to Canadian investors, the Toronto-based firm said Thursday.
The new products, Fidelity Event Driven Opportunities Fund and Fidelity Conservative Income Private Pool, will leverage the strength, stability and global presence of Boston-based Fidelity Investments, the firm says.
“Both of these new solutions leverage the core strengths of Fidelity’s investment management approach, our global talent pool and research capabilities,” said Craig Strachan, vice president, head of product, Fidelity Canada. “As the global investing landscape continues to shift and evolve, these new solutions underline Fidelity’s ongoing commitment to developing timely investment products to meet the changing needs of Canadian investors.”
Fidelity Event Driven Opportunities Fund, which will also be launched in corporate class, aims to achieve long-term capital growth by investing primarily in equity securities of companies that are involved in corporate events, including, but not limited to, spin-offs, index deletions, mergers and acquisitions, companies undergoing reorganizations and other event-driven opportunities. It seeks to uncover equity securities that have been mispriced due to these and other corporate events. The fund is managed by Arvind Navaratnam, a Boston-based portfolio manager in Fidelity’s Asset Management division.
“This is an area where Fidelity, with its extensive research capabilities and constant attention to this segment of the market, can uncover hidden opportunities,” said Strachan. “Fidelity’s active approach seeks to provide Canadian investors with new sources of alpha and greater portfolio diversification.”
The fund employs an opportunistic approach, which allows it to invest in companies of any sector, style or market cap, based on whatever particular corporate events occur.
Fidelity Conservative Income Private Pool, managed by Fidelity portfolio managers Joanna Bewick and David Wolf, will invest in a broad range of income-orientated asset classes and provide global exposure through investments in fixed-income and equity securities from around the world. It seeks to achieve a steady flow of income with the potential for capital gains.
The fund will expand the Fidelity’s Private Investment Program, which offers a wide range of investment pools designed to meet the needs of high net-worth Canadians.
“Ultimately, Fidelity Conservative Income Private Pool provides a powerful solution for high net-worth investors’ diversified income needs, potential for downside protection and exceptional support they have come to expect from Fidelity’s successful Private Investment Program,” said Strachan.