Toronto-based Fidelity Investments Canada ULC has expanded its U.S. mutual fund lineup for Canadian investors

By Clare O'Hara | December 2012

PRODUCT WATCH

 

Fidelity launches three new funds

Toronto-based Fidelity Investments Canada ULC has expanded its U.S. mutual fund lineup for Canadian investors with three new funds: Fidelity U.S. Dividend Fund (including a currency-neutral version), Fidelity U.S. Monthly Income Fund and Fidelity U.S. Monthly Income Capital Yield Fund. Fidelity U.S. Dividend Fund aims to achieve long-term capital growth by investing, either directly or indirectly, through underlying funds, primarily in equities issued by U.S. companies that pay dividends or that are expected to pay dividends, as well as in other types of securities that are expected to distribute income, such as real estate investment trusts. This fund is managed by James Morrow, who runs a similar fund for U.S. investors. Fidelity U.S. Monthly Income Fund and Fidelity U.S. Monthly Income Capital Yield Fund provide investors with the opportunity for a steady flow of income and the potential for capital gains. Both monthly income funds are managed by Geoff Stein and Mariana Egan, who also manage Fidelity's suite of monthly income funds. Advisor commissions on all three funds are 0%-5% for front-end sales, 4.9% for deferred sales, 1% for low-load sales or 2.5% for the low-load 2 option. Redemption fees begin at 6% in Year 1 and end at zero after Year 6 for the regular DSC schedule, or begin at 2% in Year 1 and end at zero after Year 2 of the low-load schedule, or begin at 3% in Year 1 and end at zero after Year 3 for the low-load 2 schedule. Trailing commissions are 1% for front-end and low-load sales, and 0.5% for deferred and low-load 2 sales. Management fees for Fidelity U.S. Dividend Fund are 2% for A-class units, 1.85% for B-class units and 0.85% for F-class units; for Fidelity U.S. Monthly Income Fund and Fidelity U.S. Monthly Income Capital Yield Fund, the fees are 1.95% for A-class units, 1.80% for B-class units and 0.8% for F-class units. Minimum investment is $500.

Horizons shutters four ETFs

Horizons Exchange Traded Funds Inc. and its affiliate, Horizons ETFs Management (Canada) Inc. (both companies are based in Toronto), have announced they will be terminating four of their exchange-traded funds (ETFs). Horizons BetaPro S&P/TSX Capped Financials Inverse ETF, Horizons BetaPro S&P/TSX Capped Energy Inverse ETF, Horizons BetaPro S&P/TSX Global Gold Inverse ETF, and Horizons COMEX Copper ETF will be terminated on Jan. 18, 2013. No further direct subscriptions for units of the terminated ETFs will be accepted; Jan, 14, 2013, is expected to be the last date on which a redemption request may be placed with Horizons ETFs Management. The terminated ETFs are expected to be delisted from the Toronto Stock Exchange at the close of business on or about Jan. 15, 2013, with all units still held by investors being subject to mandatory redemption as of the termination date.

HSBC GAM appoints a new subadvisor

Vancouver-based HSBC Global Asset Management (Canada) Ltd. has appointed a new subadvisor for the group of portfolio managers for HSBC MultiAlpha Pooled Funds. Boston-based MFS Investment Management has been appointed subadvisor to co-manage HSBC MultiAlpha International Equity Pooled Fund. HSBC MultiAlpha Funds have the flexibility to leverage the expertise of multiple investment managers with complementary styles to provide investors with an additional level of diversification and the opportunity over time to enhance their potential risk-adjusted returns.

Low-volatility funds unveiled by RBC

Toronto-based RBC Global Asset Management Inc. has launched two low-volatility equity funds for Canadian investors: RBC QUBE Low Volatility Canadian Equity Fund and RBC QUBE Low Volatility U.S. Equity Fund. Both funds use quantitative investing strategy to offer investors the upside potential of equities with less risk and volatility than broad market indices, says RBC. RBC QUBE Low Volatility Canadian Equity Fund invests primarily in equities issued by Canadian companies, while RBC QUBE Low Volatility U.S. Equity Fund invests primarily in equities issued by U.S. companies. These funds are appropriate for investors who have a long-term investment horizon and who are able to tolerate a medium level of investment risk. Advisor commissions are 0%-5% for front-end sales, 5% for deferred sales or 1% for the low-load option. Redemption fees begin at 6% in Year 1 and end at zero after Year 6 for the regular DSC schedule, or begin at 2% in Year 1 and end at zero after Year 2 for the low-load option. Trailing commissions are up to 1% for front-end and low-load sales, and up to 0.5% for deferred sales. Management fees are 1.75% for A-class units and 0.5% for F-class units. Minimum investment is $500.

Compiled by Clare O'Hara (cohara@investmentexecutive.com).