One-ticket ETFs and funds, including innovation-focused solution, offer blended exposures to global stocks and bonds
Fidelity Investments Canada (Fidelity) has launched new all-in-one ETFs and funds, including a multi-asset innovation fund, available to Canadian financial advisors and investors.
“In today's uncertain times, Canadian financial advisors and investors are looking for more stability to help them achieve their investing and life goals − balanced funds are an ideal solution for this,” said Kelly Creelman, senior vice president, Products & Marketing at Fidelity.
A global balanced mandate, the Fidelity Multi-Asset Innovation Fund aims for a high total investment return. It primarily invests in or provides mixed exposure to equity and an expansive set of fixed income securities spanning the U.S. and other issuers from around the world.
The fund is led by the portfolio management experience of Mark Schmehl, Jeff Moore and Michael Plage. With a strong track record in equities, Schmehl seeks companies that are poised to benefit from innovative emerging technologies or business models. On the fixed income side, Moore and Plage will aim to generate income and provide risk mitigation by investing in global investment-grade bonds, high-yield debt securities, and other fixed-income instruments.
“By bringing Mark's focus on positive change and Jeff's and Michael's focus on income and risk mitigation, this Fund can serve as a core holding for advisors and investors aiming for strong risk-adjusted returns with lower volatility,” Creelman said.
Fidelity has also launched its new Fidelity All-in-One ETFs, which promise exposure to a globally diversified portfolio of stocks and bonds, on the NEO exchange. Also available in mutual fund versions, the asset-allocation ETFs are sub-advised by Geode Capital Management and will provide broad market exposure using Fidelity Factor ETFs as well as Fidelity’s systematic and active fixed-income management.
The Fidelity All-in-One Balanced ETF (FBAL) aims for capital growth through total returns using a strategic allocation approach, which generally follows a neutral mix of 60% global equity securities and generally follows a neutral mix of 60% global equity securities and 40% global fixed income securities.
Meanwhile, the Fidelity All-in-One Growth ETF (FGRO) also seeks capital growth with a strategic allocation approach, though it places generally more emphasis on equities. It generally follows a neutral mix of 85% global equity securities and 15% global fixed-income securities.
The firm is also temporarily waiving a portion of the management fees on selected ETFs and mutual funds on or around February 8, 2021. The ETFs and mutual funds to be affected include:
ETFs
|
ETF |
Ticker |
Current Management Fee |
New Management Fee After Waiver |
|
Fidelity Canadian Monthly High Income ETF |
FCMI |
0.50% |
0.40% |
|
Fidelity Canadian Momentum Index ETF |
FCCM |
0.35% |
0.10% |
|
Fidelity Canadian Value Index ETF |
FCCV |
0.35% |
0.10% |
|
Fidelity Global Monthly High Income ETF |
FCGI |
0.55% |
0.45% |
|
Fidelity International Momentum Index ETF |
FCIM |
0.45% |
0.20% |
|
Fidelity U.S. Momentum Currency Neutral Index ETF |
FCMH |
0.38% |
0.10% |
|
Fidelity U.S. Momentum Index ETF |
FCMO |
0.35% |
0.10% |
|
Fidelity U.S Value Currency Neutral Index ETF |
FCVH |
0.38% |
0.10% |
|
Fidelity U.S. Value Index ETF |
FCUV |
0.35% |
0.10% |
Mutual Funds
|
Mutual Fund |
Series |
Current Management Fees |
New Management Fee After Waiver |
|
Fidelity Canadian Monthly High Income ETF Fund |
B |
1.50% |
1.40% |
|
Fidelity Canadian Monthly High Income ETF Fund |
F |
0.50% |
0.40% |
|
Fidelity Global Monthly High Income ETF Fund |
B |
1.55% |
1.45% |
|
Fidelity Global Monthly High Income ETF Fund |
F |
0.55% |
0.45% |
“Such waivers may terminate at any time without notice, at Fidelity's sole discretion,” the firm said.
