FidelityConnects

For today’s podcast, we’re excited to bring you an episode of our new “Behind the Numbers” series. In “Behind the Numbers”, Chris Pepper, VP, Corporate Affairs, speaks with Fidelity’s portfolio managers, analysts, subject matter experts, and more, about what brought them into investing and what drives them every day. In this episode, Chris speaks with Boston-based Fidelity portfolio manager Ramona Persaud, who was born in New York City and jokes that she had to choose between fashion or finance.

At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information.

For the third year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2023 Environics’ Advisor Digital Experience Study.

Today on the show, Director of Global Macro Jurrien Timmer  covers recent market trends, Q4, earnings, P/E ratios and the Fed. In terms of a soft landing, inflation and the Fed Jurrien explains the market has been betting on a soft landing, and so far, this has been correct. And he adds several pillars support the soft-landing thesis.  During COVID, the labor market tightened significantly, with job openings outweighing job seekers at historic levels. Despite a subsequent softening in labor market conditions, the drawdown in excess labor demand has not led to a recession. This drawdown, combined with a decrease in inflation, allows for an economic softening without a recession. Jurrien says despite the influence of inflation, the fundamentals remain solid, indicating overall resilience in the market. In the US, wage growth now surpasses inflation, which is a positive development for consumers. Jurrien also speaks about Bitcoin and gold saying that he doesn’t believe the bitcoin rally will continue but does see it a viable asset in the long-term. As always, Jurrien shares his charts so please go to @TimmerFidelity on Twitter to follow along. And don’t forget Fidelity Canada’s VP of Product Andrew Clee will be back for his second Reddit AMA talking all about bitcoin and his thoughts on the markets. Submit your questions by March 20th and Andrew will answer them on March 21st.

Recorded on March 11, 2024.

At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information.

For the third year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2023 Environics’ Advisor Digital Experience Study.

Today on the show, long time portfolio manager Dan Dupont joins the program to discuss his current investment strategy, gives an update on Canadian Large Cap Fund, and where he’s seeing opportunities in 2024. He says the concentration in his fund is primarily focused in the tech sector, especially in the Magnificent 7, which is trading at historically high levels. He’s also shifting his investment strategy towards overlooked areas like large cap, healthcare, staples, and Chinese markets. But he adds he’s cautiously investing in China due to significantly reduced valuations compared to the past. He’s also looking at investment opportunities in Japan, South Korea, and other regions. With Canadian Large Cap fund, he says the fund tends to excel during periods of volatility, showcasing its ability to weather downturns effectively. To add to this, historically, the large cap fund has demonstrated a downside capture averaging around 34 to 35%, indicating relatively low susceptibility to market downturns. 

Recorded on February 21, 2024.

At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information.

Today on the program, we welcome Evan Zehnal, Equity Research Analyst and Vishal Chopra, Equity Research Associate. They discuss the impact of macroeconomic factors on the tech sector, and highlight the challenges and opportunities amid economic uncertainties. Vishal covers Canadian technology and healthcare sectors, including software, hardware, pharmaceuticals, and med-tech companies. Evan focuses on innovative technologies within US software, cybersecurity, and internet sectors. They deep dive into AI and its impact on the tech sector, employment, and remote work. Evan discusses how AI enhances software development processes and user interactions through natural language processing including coding, iteration, testing, and user interface design. They touch on the challenges in chip supply and tech spending adding that global chip supply constraints affect capital spending, but anticipation of increased investment arises as supply challenges ease – this is driven by AI demand and private firms innovating with AI.  

Recorded on February 16, 2024

At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information.

Today we welcome back Director of Global Macro Jurrien Timmer for his weekly perspective on the markets. Jurrien discusses his outlook on equity risk premium, small caps, emerging markets, fed policy and many more. Jurrien comments on current market dynamic shifts saying the transition from the late-cycle to the mid-cycle is evident, characterized by robust earnings rebound and an ongoing soft-landing phase, which bolsters bullish market sentiment. He adds new bull markets are typically driven by valuation initially, with prices advancing ahead of earnings, which then follow in subsequent quarters. Jurrien touches on ERP – equity risk premium. Analyzing the current market scenario, the market is currently trading at around 21 times forward earnings, indicating a relatively high valuation. This low ERP suggests heightened market sentiment and valuation, with the market anticipating future earnings expansion. But it also indicates a limited margin for error in the market's pricing, leaving it vulnerable to economic downturns or unforeseen shocks.

Recorded on March 4, 2024.

At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information.

Today on the program, we welcome director of ETFs Andrei Bruno. Andrei highlights the launch of Fidelity’s All-Equity ETFs, how it focuses on strategic rationale and market timing, plus the future potential of the products amid the backdrop of economic conditions. Andrei says the All-Equity ETFs were launched in order to build on the success of the existing all-in-one product suite and leverage the power of the factor ETFs suite. It also addresses client and advisor feedback by offering a solution that packages factor ETFs for regional equity exposure. Andrei adds the ETFs are designed as "active in design, but passive in implementation," offering a strategic asset allocation approach to maintain diversification over the investment cycle.

Recorded on February 15, 2024.

At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information.

Today on the show, we welcome Portfolio Manager Adam Kramer and Institutional Portfolio Manager Scott Mensi. They discuss their tactical approach to fixed income investing, and where they are finding new investment opportunities in today’s markets. Adam and Scott provide a tactical high income portfolio overview, explaining that the fund intends to provide a level of income that exceeds that of traditional balanced funds. It also allows investors to identify the most promising risk-adjusted opportunities by leaving asset allocation decisions to an experienced team, making it a favourable structure for investors today. Kramer and Mensi say there are areas within the marketplace that are attractive which include opportunities in high-yield bonds, convertible bonds, foreign bank debt and floating rate preferred shares. There is also potential in various equity sectors such as large-cap dividend players in the energy and gold mining industries, in addition to a few value names in small and mid-cap sectors. The importance of both proper income-to-risk matching and seeking assets with favourable risk-reward profiles are emphasized when looking for opportunities.

The podcast was recorded on February 12th, 2024.

At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information.

Today on the show, we welcome Brett Dley, Portfolio Manager of the Fidelity Market Neutral Alternative Fund. He explains how a long/short investing strategy may be successful in periods of volatility, and where he sees opportunities in 2024. Brett describes market-neutral alternative funds as an equity-based fund without any correlation to separate underlying assets. It operates by concurrently buying one stock and shortening another to maintain a net exposure of zero, and engages in approximately 35 to 40 pair trades. This allows it to create long and short positions to focus on stock-specific differences. Brett discusses the fund’s role for investors approaching retirement and its emphasis on reducing portfolio volatility. He adds by incorporating an investment with lower volatility, investors can potentially navigate market fluctuations more comfortably and prevent impulsive selling decisions during downturns. He also says in the current macro environment, the fund is specifically deployed in response to market conditions and is positioned to mitigate potential downside in a frothy market.

Recorded on February 1, 2024.

At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information.