Fidelity Investments Canada has launched two new mutual funds geared towards Canadian investors who are seeking income without taking on too much risk.
"Many investors are driven by income needs and seeking income is challenging in today's environment. There is no greater, more challenging issue for our investors than where do I find income in this low interest rate environment," says Rob Strickland, President, Fidelity Canada. "As well, investors have been through two downturns over the last 15 years and many are sitting on the sidelines or unwilling to take on additional equity risk in their portfolios. Many are looking to re-enter the markets but are concerned about downside risk. Fidelity has solutions for both these types of investors."
Fidelity Conservative Income Fund is designed for investors seeking a steady flow of income with the potential for growth over the long term. It offers exposure to a diverse set of income-oriented asset classes from around the world, with the benefits of a tactical asset allocation approach.
"Many investors with conservative risk profiles are seeking income from their investments, but they would also like to realise capital growth for their future savings needs and to outpace inflation," says Strickland. "It's so challenging you need a broad portfolio solution: income from bonds, income from equities, and inflation protection. Fidelity Conservative Income Fund uses these strategies in order to seek income for the investor."
Managed by Joanna Bewick and David Wolf, the Fund has a neutral mix of 20 per cent equities and 80 per cent fixed-income securities. Depending on the market conditions, the portfolio managers can actively allocate the Fund's neutral mix by up to +10 per cent/-15 per cent for equities and +15 per cent/-10 per cent for fixed-income securities. The Fund's asymmetric asset allocation parameters can allow the portfolio managers to focus on downside risk mitigation while at the same time offering the flexibility to capture growth potential in rising markets.
Fidelity Strategic Income Fund is a diversified global fixed-income solution designed for investors seeking a combination of a high level of current income with the potential for growth over the long term.
"These days, many investors are seeking income from multiple, often non-investment grade sources. Fidelity Strategic Income Fund meets that need by bringing together a wide range of income-oriented asset classes combined within an actively managed portfolio," says Strickland.
Fidelity Strategic Income Fund is a multi-sector fixed-income solution that touches on all dimensions of fixed-income investing and provides exposure to diverse sectors of the fixed-income market. This can provide investors with higher total return potential than an investment-grade bond fund, and can complement their Canadian fixed-income holdings.
Managed by experienced Fidelity portfolio managers Joanne Bewick and Ford O'Neil, the Fund leverages Fidelity's worldwide research teams specialising in global fixed-income asset classes. The portfolio managers have the flexibility to modify portfolio positioning with an aim to generate solid risk-adjusted returns over the long term.