FidelityConnects

As we enter another point of uncertainty in the markets, portfolio manager David Tulk joins us to speak about the increasing levels of inflation and what that means for asset allocation. Canada is said to be heading towards the peak of inflation, which is 1% over the comfort zone of 2%. As a result, an elevated degree of understanding is required when digesting forecasts from the Feds and National Banks to gain an understanding of where economies are heading. Right now David sees a benefit to having the Fidelity Inflation-Focused Fund, as this product includes many asset classes including equities, commodities, and bonds which are designed to protect you against the inflationary environment. Finally, David feels we should be cautious of Canadian real estate. By ensuring the housing sector continues to grow, this will uphold our underweight dollar. The number one priority is keeping exposure to a variety of markets and maintaining a heavily diversified portfolio.

Recorded on December 15, 2021.

Joe Overdevest, Director of Research and Portfolio Manager, is joined by Brendan Cochrane, Equity Research Analyst, and Andrew Hall, Equity Research Associate, on today’s episode. The panel speaks with host Pamela Ritchie about supply chain issues, labour, consumer health, housing, ESG, bankruptcies, and the energy transition. Brendan believes that there are two factors in the past year that stand out when investors think of supply chain issues. The first being ocean shipping costs which have skyrocketed and the second is the chip shortage as there is an increased demand for work from home electronics. Andrew mentions that he is seeing wage increases that are higher than normal and increases for frontline jobs, also noting that companies are scrambling to hire back employees that were let go during the pandemic. Joe comments on housing, noting that we are spending more time in our homes, causing the focus of real estate to shift from office building to home building. He added that supply is still not keeping up with demand believing that we are not yet at the point where supply is outstripping demand.

Recorded on December 14, 2021.

Transcript (PDF): https://www.fidelity.ca/cs/Satellite/doc/transcript_podcast_fidelityconnects_overdevest_14dec.pdf

Étienne Joncas-Bouchard, ETF Strategist, is featured on this episode providing the key factors that are in focus, along with his outlook for 2022. Étienne discusses the CPI and provides his interpretation as to why the markets are still considered stable. The housing market was also discussed extensively where Étienne highlights potential concerns and upsides. Throughout the episode, Étienne provides his outlook on both the current and future market and suggests various factors that will be important to focus on for investing. Étienne highlights the business cycle and interest rate which will ultimately be vital for the overall success of the market. Étienne also provides his thoughts about the super-cycle on this episode. Additionally, Étienne discusses the importance of not being too growth-tilted, and unpacks the idea of speculation and how this type of behaviour impacts the market.

Recorded on December 10, 2021.

Transcript (PDF): https://www.fidelity.ca/cs/Satellite/doc/transcript_podcast_fidelityconnects_bouchard_10dec.pdf

Nous sommes heureux de vous présenter aujourd’hui une émission un rien plus longue que d’habitude. Nous souhaitons la bienvenue aux gestionnaires de portefeuille Hugo Lavallée et Patrice Quirion pour une discussion approfondie les leçons tirées de leurs en 2021. Ils partagent également leurs réflexions sur ce que les marchés pourraient nous réserver en 2022. MM. Lavallée et Quirion traitent de nombreux sujets avec l’hôte Charles Danis, notamment les enjeux ESG, le climat et la gestion en période de volatilité. Ils s’en tiennent tous deux à leur propre démarche de placement et ne se laissent pas distraire par les placements qui ont la cote. M. Lavallée explique que la volatilité crée des occasions de placement pour les gestionnaires actifs, surtout pour lui qui est un investisseur à contre-courant. Pour ce qui est de 2022, il établit aussi des comparaisons avec le cycle du marché de 2011. Selon lui, nous avançons dans la bonne direction, mais nous faisons trois pas en avant, puis deux pas en arrière. M. Quirion, quant à lui, estime que 2022 sera l’année où nous apprendrons à vivre avec la COVID-19. Pas seulement du point de vue de la santé, mais aussi de l’économie et des marchés, qui devraient être moins affectés par la pandémie.

Date : 9 décembre 2021.

Transcription : https://www.fidelity.ca/cs/Satellite/doc/transcript_podcast_theupside_lavallee_09dec.pdf

Director of Global Macro, Jurrien Timmer, touches on inflation, the global money supply, geopolitical tensions, and value prospects in this episode. Commencing with inflation, Jurrien notes that CPI came in as expected, year over year at 6.8% and that the market is moving beyond that - believing that the bond market is reflecting that the worst is behind us. Jurrien adds that the U.S Federal Reserve is likely to announce this week that they are going to turbo taper in March 2022 instead of June 2022. In terms of political tensions and possible effects on supply chains, Jurrien explains to host Pamela Ritchie that geopolitical tensions are not a good thing for markets, but believes that the current Russia and Ukraine tensions are not going to be market moving . He also adds it’s important to distinguish if a tension is systemic. Jurrien will be sharing a few charts so please head to @TimmerFidelity on Twitter to follow along.

Recorded on December 13, 2021.

Transcript (PDF): https://www.fidelity.ca/cs/Satellite/doc/transcript_podcast_fidelityconnects_timmer_globalmacro_13dec.pdf

Join Hugo Lavallée, Portfolio Manager of Fidelity Climate Leadership Fund™, Fidelity Greater Canada Fund and Fidelity Canadian Opportunities Fund, for a discussion of his contrarian investment strategy, the future of climate-focused thematic investing and his views on investing in Canada in 2022. As a contrarian investor, Hugo focuses on pushing through short term dislocation and looking at opportunities within companies over the next two to three years. Hugo also discusses how Europe is years ahead in getting closer to net zero carbon emissions and how North American countries can adopt their thinking to also reach a net zero goal. Hugo states he is not here to convince people on climate change but rather to show them how the world is changing, and investors should embrace change to protect themselves and their investments. With the energy transition, Hugo explains how oil and gas companies are pivoting their business model for carbon capture, the use of EVs and the impact of circular fashion on our climate.

Recorded on December 9, 2021.

Portfolio manager Mark Schmehl joins FidelityConnects for an insightful discussion with host Pamela Ritchie. For Canadian investors, Mark manages Fidelity Global Innovators Class, Fidelity Special Situations Fund, and Fidelity Canadian Growth Company Fund. Today, Mark reflects on the market volatility seen throughout November and December, noting it gave him a chance to add to his favourite positions. He has high conviction in his top ideas, and attributes the recent volatility to a collective panic from a lot of investors who have the same bets. Mark also discusses the overall economy and market cycle, oil, and regulation for tech companies. Mark shares the differences and similarities between his funds, including the opportunity to invest in private companies. Also today Mark looks at the big topic of the metaverse, believing people are going to spend more time in these immersive worlds. Mark sees many investors incorrectly viewing the metaverse more like a video game, whereas Mark compares it to a different version of TV.

Recorded on December 8, 2021.

HyunHo Sohn, Portfolio Manager of Fidelity Technology Innovators Fund, reflects on recent trends in the tech industry throughout the pandemic, recent investor pressures, and overall modernization. Overall, HyunHo recognizes the general importance of technology when it comes to efficiencies and increased digitization, therefore, HyunHo believes mega-cap tech companies are projected to continue doing well. Some big opportunities that come from these efficiencies include process automation for many different industries, software management that reduces time, money and resources and connecting businesses to customers, as well as other businesses. Privacy risks are constantly being improved as social media and cyber security become widely used in our society, and HyunHo believes there will be more need to traffic data centres as a result. Japan is also noted as a leading innovator, recently developing robotics, automation technology and trading at more attractive multiples than US companies. Additional thoughts are shared on the Metaverse, government infrastructure, regional positioning, semi-conductors and opportunities and barriers for Chinese companies.

Recorded on December 3, 2021.

Transcript (PDF): https://www.fidelity.ca/cs/Satellite/doc/transcript_podcast_fidelityconnects_sohn_03dec.pdf

Vivian Hsu, Director ETFs and Alternatives, and Meghan Chen, Senior Product Solutions Analyst, are featured on this episode discussing Bitcoin investing and the potential offerings it can provide to investors. In addition to introducing the new Fidelity Advantage Bitcoin ETF and Fidelity Advantage Bitcoin ETF Fund, Vivian provides an industry update, highlighting recent ETF success and the increased demand for cryptocurrency and Bitcoin related products. Meghan provides a high-level overview and explains some of the main features of Bitcoin. Additionally, Meghan discusses who is responsible for tracking all the Bitcoin transactions that occur around the network. The blockchain was also highlighted extensively throughout the episode, where Meghan discusses consumers perception of the blockchain. Further in the episode, Meghan discusses Bitcoin mining and how miners can be found across the world on a global scale. Additionally, Meghan discusses the energy requirements needed in mining for Bitcoin. Vivian and Meghan also discuss the opportunities for investors and the potential exposure that investors could see in the cryptocurrency space. Finally, Meghan discusses the storage capabilities of Bitcoin and the safety related to investors.

Recorded on December 2, 2021.

Transcript (PDF): https://www.fidelity.ca/cs/Satellite/doc/transcript-podcast-chen-bitcoin-investing-02dec.pdf

Le gestionnaire de portefeuille Daniel Dupont est de retour à notre émission aujourd’hui pour nous faire part de ses réflexions sur les marchés en 2021 et ses perspectives pour 2022. M. Dupont investit en mettant l’accent sur la protection en cas de baisse. Il gère les Fonds Fidelity Grande Capitalisation Canada et Valeur mondiale à positions longues/courtes pour le compte des investisseurs canadiens. Il est également cogestionnaire d’autres produits de placement, dont le Fonds Fidelity Étoile du Nord. En compagnie de l’animateur Charles Danis, M. Dupont discute de la volatilité récente sur les marchés et partage son opinion sur les évaluations boursières, l’inflation et l’incertitude entourant les politiques fiscales et monétaires. À son avis, les actions américaines se négocient à des cours trop élevés alors que celles du Royaume-Uni sont plus attrayantes. Le gestionnaire rappelle également aux investisseurs de demeurer très vigilants. Il considère que l’inflation est élevée et qu’elle pourrait augmenter encore plus, et ajoute que le haut niveau d’endettement pose problème, car si les banques centrales tentent de freiner la situation, la tendance économique pourrait être complètement renversée.

Date: 2 décembre 2021

Lire la transcription : https://www.fidelity.ca/cs/Satellite/doc/transcript_webcast_dupont_02dec_f.pdf