FidelityConnects

Dividend Plus fund portfolio manager Don Newman joins us on the podcast today. Don discusses fluctuating market conditions, the benefits of dividend investing, and the macro-economic factors influencing his investment decisions.  Don says that it’s been interesting to watch how bond markets have been pricing interest rates during the past three to six months. Wages remain sticky, with many individuals locked into multi-year contracts with limited flexibility, and unions that continue to reduce inflation-related losses. Don comments on Canadian banks and explains that while they tend to be profitable early cycle stocks, we’re currently at the tail end of the cycle, with the market pricing them down as things start to slow. He says that dividends remain safe, with good capital ratios and valuations.

Recorded on May 30, 2023. 

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 second year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2022 Environics’ Advisor Digital Experience Study.

Between the latest earnings, debt ceiling talks, and inflation concerns, it’s been a choppy month for North American equities. With the Bank of Canada set to make another rate decision, where can investors find solace in this fast-moving market environment? And how is today’s guest positioning his fund amid the latest market hurdles? Darren Lekkerkerker, portfolio manager of Fidelity North American Equity Class breaks down his investing method, and shares where to consider your next position in North America. Darren also runs the equities subportfolio of Fidelity Canadian Balanced Fund, and co-manages Fidelity Global Natural Resources Fund. Today he shares with host Pamela Ritchie that his North American Equity Fund currently sits at 70% U.S. and 30% Canadian companies, with a continued focus on high quality companies. The fund is roughly 25% invested in technology, and Darren notes that A.I. is extremely relevant, currently being looked at as a mega theme. Darren touches on the most recent earnings season, transportation and railroads, housing, and of course natural resources. The energy transition is another mega theme being watched, as well as how China’s reopening affects materials.

Recorded on May 29, 2023.

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 second year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2022 Environics’ Advisor Digital Experience Study.

Equity Research Analysts Evan Zehnal and Vishal Chopra join us on the podcast today. Evan and Vishal discuss all things new and innovative in the Canadian technology sector. They discuss how Canada is making a name for itself within AI, where they see investor opportunity, and the importance of cybersecurity. Vishal and Evan speak about the University of Toronto's influence on AI model and training development, work which has formed the basis for some of the transformer models in modern applications today. Companies within Canada that have built relationships with U of T are well positioned to take advantage of these developments, and build their own large language models or use existing models to amplify their products. Evan and Vishal explain that Chat GPT has pioneered the fastest tech adoption the world has ever seen, reaching 100 million users in the past two months. Since these large language models work with text, they have serious disruptive potential and can be used by companies to streamline various tasks such as drafting emails or proposals. Significant attention is being paid to regulation, and Evan and Vishal predict that large tech companies will begin to work with governments to stay ahead. They say North America continues to remain the main story for AI, particularly Toronto and Silicon Valley.

Recorded on May 26, 2023.

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 second year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2022 Environics’ Advisor Digital Experience Study.

Today on the program, we put the spotlight on Fidelity’s newly launched active equity ETF and ETF series.  Director of ETF’s Andrei Bruno explains how the new products could help your clients achieve their long-term investment goals and diversify their portfolios.  Andrei says Fidelity’s new suite of active ETFs provides choice for the investor, offering products run by different managers who have different investment styles, perspectives, cap focuses, and geographies.  He also speaks about the ETF space and current trends.  Andrei points to continued inflows, primarily to defensive areas like fixed income, as a trend worth following. Looking at longer term trends, Andrei says that ETFs continue to see year over year growth, despite the passive approach taken by many investors. He also explains the difference between ETFs and mutual funds, lies primarily in how they are traded, with ETFs being exchange traded and benefitting from intraday liquidity and ease of bulk trading. Andrei also describes his tips and tricks for trading ETFs, including avoiding trading at the open and close, due to increased volatility, and reaching out to your trading desk about preserving liquidity when executing block trades. 

Recorded on May 25, 2023.

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 second year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2022 Environics’ Advisor Digital Experience Study.

Today on the podcast we welcome Portfolio Manager Sri Tella to discuss his outlook on the fixed income market, whether investors should consider adjusting the risk profile of their portfolios, and the extent to which Canada is grappling with the same part of the ongoing inflation story as the United States. On the fixed income side, Sri explains to host Pamela Ritchie that issuance has generally been down in Canada, fuelling the strength of the Canadian market. Strategies like tactical mandates, reduced exposure to the broader market, and placing focus on companies with strong fundamentals all help to balance risk and return. From a growth and economic perspective, Canada looks good to international investors and there continues to be demand for high quality fixed income in markets. Sri describes how demand has shifted into the service sector, as the market for goods has declined post-pandemic, due to higher prices. High savings rates are fuelling consumer spending in both Canada and the United States, with Canada’s inflation coming down to around 4%. Towards the latter half of the year, the Bank of Canada is forecasting a 3% inflation rate, which remains high by historical industry standards. Turning to the debt ceiling, Sri says that investor concern is primarily related to the possibility of short-term volatility in the market. He is confident that a deal will be reached, but whether it will be reached on time remains uncertain.

Recorded on May 24, 2023.

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 second year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2022 Environics’ Advisor Digital Experience Study.

Today we are joined by Director of Quantitative Market Strategy, Denise Chisholm, to discuss the impending debt ceiling decision, the treasury implications following a deal, and how it could affect the market environment. As pressure mounts on leaders to reach a deal, Denise explains to host Pamela Ritchie that investors are concerned about liquidity, following a debt ceiling resolution. She describes how, over the last year, the General Account of the Treasury has been using significant resources, which it will likely attempt to replenish by issuing Treasuries, in turn depleting the reserves of the banking system. The near perfect correlation between those reserves at banks’ balances and the S&P 500 over the last 21 months suggests that a liquidity withdrawal will negatively impact equity markets, even if a debt ceiling deal goes through. Turning to the developing inflation story, Denise explains that the Fed could keep hiking rates if the service side of the economy stays strong. She suggests that investors may not want to look to the Fed when it comes to predicting market trends, and instead suggests that overall inflation is a more effective driving metric. Denise also breaks down emerging trends in the technology sector, citing the 40% peak to trough contraction in the NASDAQ and the 60% decline of individual growth stocks as primary reasons for its recent defensiveness.

Recorded on May 23, 2023.

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 second year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2022 Environics’ Advisor Digital Experience Study.

Today we speak with the Honourable Ahmed Hussen, Member of Parliament for York South-Weston, and Minister of Housing and Diversity and Inclusion. Minister Hussen speaks about the national housing strategy, how racial gaps affect economic gaps, and how the housing market remains affected by immigration. Minister Hussen explains to host Pamela Ritchie that while 68% of Canadians own a home, housing still needs to be built for everyone, including those experiencing homelessness. Canada’s National Housing Strategy, launched in 2017, aims to get people off the street and into permanent housing. He also cites programs like the first-time homebuyer incentive and tax-free savings account, as additional ways home ownership can be supported. Disparities in homeownership, Minister Hussen says, are even more pronounced among Indigenous and black Canadians. He describes some of the steps being taken to address the gap, which includes the recent allocation of $4 billion to invest in housing on reserves through the Urban, Rural and Northern Indigenous Housing Strategy. Speaking about how the housing market is affected by immigration, Minister Hussen says that Canada is at an advantage because of a strong immigration system that remains effective in attracting skilled workers for housing construction. The $4 billion Housing Accelerator Fund aims to double housing construction in Canada over the next 10 years.

Recorded on May 17, 2023.

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 second year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2022 Environics’ Advisor Digital Experience Study.

On May 11, Fidelity Investments Canada hosted FOCUS2023, a daylong event for advisors featuring Fidelity’s portfolio managers, subject matter experts and thought leaders. Sessions ran both onstage in Vancouver to a live audience, and from our Toronto studio for a crowd of thousands more online. Today, we put the spotlight on portfolio manager Hugo Lavallée as he speaks about his contrarian approach to investing, how he navigates volatile times, and his current strategies. Hugo's contrarian approach involves staying at the bottom and navigating through difficult moments because when that element of change comes, it can be magical and profitable, he explains. Hugo says he's constantly researching and studying companies so he is ready and can react quickly when the time comes to make a move.  His current strategy focuses on active alternative managers and private equities. He's invested in tech, industrials, transportation, and rail, but not so much in consumer stocks. In terms of geography, he’s still mainly focused on North America and Europe.

Recorded May 11, 2023.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 second year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2022 Environics’ Advisor Digital Experience Study.

Today we speak with Portfolio Manager Matt Siddle as he discusses the impacts of rising interest rates on European consumers, opportunities for-long-term investing in staples, and his investing philosophy. Within the European labour environment, Matt explains to host Bryan Borzykowski, historically low unemployment levels continue to enable wage inflation. In turn, unions continue to push for wage hikes of between 10 and 15 percent to match rising costs. The cost of food has risen by almost 40%, and while the removal of the “fear factor” around gas shortages has caused European markets to rally, the price of petrol and diesel has continued to double, even quadruple, in other countries. The impacts of American regional bank failures and the Credit Suisse banking crisis on European markets has been limited, Matt explains, because of decreased exposure to commercial real estate. Matt also emphasizes that consumer staples remain a significant avenue of opportunity for investors due to their strong pricing power and high returns. When it comes to sourcing ideas, Matt describes the extensive team of analysts and researchers assembled in Europe covering stock recommendations and pitching investment ideas. In addition to the rigorous screening process he deploys to identify the quality of a given business, Matt emphasizes that his goal is to find the profitable opportunities and attractive valuations that are consistent with his investment process.

Recorded on May 18, 2023.

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 second year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2022 Environics’ Advisor Digital Experience Study.

On May 11, Fidelity Investments Canada hosted FOCUS2023, a daylong event for advisors featuring Fidelity’s portfolio managers, subject matter experts and thought leaders. Sessions ran both onstage in Vancouver to a live audience, and from our Toronto studio for a crowd of thousands more online.  On today’s podcast, we’re putting the spotlight on our fixed income team made up of portfolio manager Jeff Moore and quantitative analyst Stacie Ware who sat down with host Katherine Black.  Jeff and Stacie speak about the state of the fixed income market, the inflation and Fed storyline, and what it all means for fixed-income investors going forward.  Jeff says they believe inflation has peaked and they expect a stationary state for inflation to get around sub-four by Christmas. If this is the case, this is a particularly good setup for bonds and the bond market.  Stacie who is new to the team, explains her role. She is actively involved in the day to day management of the portfolios and she also runs scenario analysis. She spends time with macro analysts and sector specialists to talk about how the market may play out and new opportunities in different sectors. And based on all that information, she produces potential outcomes for fixed income portfolio construction.  Both Jeff and Stacie suggest how clients should approach investing in today's market landscape, diversification in fixed income and how treasuries are attractive at this point in time. Recorded on May 11, 2023.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 second year in a row, FidelityConnects by Fidelity Investments Canada was ranked the #1 podcast by Canadian financial advisors in the 2022 Environics’ Advisor Digital Experience Study.