Two new portfolios from Toronto-based Fidelity Investments Canada ULC are meant to help investors weather market volatility and low interest rates. Fidelity Conservative Managed Risk Portfolio is a multiple asset class product for retired and soon-to-retire investors. This portfolio is meant to mitigate investors’ exposure to market volatility while providing some equities exposure for potential capital growth. The portfolio has an asset mix of 40% equities and 60% fixed-income. Fidelity Balanced Managed Risk Portfolio is similar to the conservative portfolio, but is designed to offer long-term capital appreciation while mitigating exposure to market volatility. This portfolio seeks to achieve this goal through an asset mix of 60% equities and 40% fixed-income. Redemption fees begin at 6% in Year 1 and end at zero after Year 6 for the regular DSC schedule; 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 and zero after Year 3 for the low-load 2 schedule. Advisor commissions for both funds are 4.9% for deferred sales, 1% for the low-load option or 2.5% for the low-load 2 option. Trailing commissions are 0.5% for deferred sales, 1% for low-load sales and 0.5% for low-load 2 sales. Management fees are 1.85% for A-class units of the conservative portfolio and 1.95% for A-class units of the balanced portfolio. Management fees are 0.7% for F-class units of the conservative portfolio and 0.8% for F-class units of the balanced portfolio. Minimum investment is $500.
(fcollie@investmentexecutive.com).
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