Toronto-based Fidelity Investments Canada ULC has announced proposed changes to some of its mutual funds and pooled funds, with the goal of increasing diversification within those funds.

The firm is proposing that the Fidelity Managed Portfolios, Fidelity Balanced Private Investment Pools and Fidelity ClearPath Retirement Portfolios include investments such as exchange-traded funds and derivatives such as futures contracts. The current allocation of assets within these portfolios and pooled funds is primarily focused on other funds or pools managed by Fidelity Investments.

The changes would help to increase diversification within the funds and allow for more efficient portfolio management, Fidelity states in its announcement.

Other proposed changes to the firm’s ClearPath Retirement Portfolio include the introduction of an active asset-allocation approach.

The firm is also proposing to reposition its Fidelity Latin America fund so it can invest more broadly in frontier markets and emerging markets, as opposed to maintaining its focus on Latin American markets. (Frontier markets are developing countries that are more developed economically than the least-developed countries, but not as well developed as emerging-markets countries, the announcement explains.) The move would allow the fund to invest in a more diverse set of markets and industries.

“The Latin America investment universe, as defined by the MSCI EMF Emerging Markets index, has a high concentration of issuers among financials, energy and materials companies, and therefore has a high degree of similarity to the industry exposure Canadian investors realize through their domestic equity investments,” the announcement states.

If the proposal for the Fidelity Latin America Fund is approved, its name will be changed to Fidelity Frontier Emerging Markets Fund on the effective date of the changes.

The investment objectives of the mutual funds and pooled funds will also change pending approval. In the case of the mutual funds, investors will be asked to vote on these changes at meetings to be held on Nov. 30 in Toronto.

Further details and the full list of affected funds can be found through the firm’s announcement.