By Fidelity Investments | August 9, 2021
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Description: A text banner appears stating David Wolf, Portfolio Manager, Fidelity Global Balanced and Global Income Portfolios, Fidelity Investments.
David Wolf: My name is David Wolf. I'm the co-lead manager of a wide range of multi-asset class funds for Canadian investors here at Fidelity. And that includes the global balanced and global income managed portfolios, which is part of our core fund of funds lineup for Canadian investors.
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David Wolf: The process itself very much starts with our research team. So we have a team of 23 analysts in Boston who are dedicated exclusively to asset allocation work. And so that covers the gamut from macro insights to helping us with portfolio construction and optimization.
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David Wolf: So that's really where the process comes from in terms of the important inputs. The other important input I would say is the close work that we do with our underlying equity and bond managers.
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David Wolf: So they're giving us great insights into their own markets and also helping us fill out the market mosaic, so to speak. But one thing that I should mention is, we take in all of these inputs, but we ourselves as co-lead managers are responsible for the final decisions on allocations in the funds. So what that means is our incentives as managers are very much aligned with the incentives of fund holders, which we think is a pretty good construct in terms of making sure these funds are doing what they're supposed to do.
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David Wolf: Going global has been the way to go for Canadian investors for a number of years in terms of improving return, but also managing risk and volatility in the portfolios. And I think that that's going to be true for quite some time to come.
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David Wolf: As you know, the Canadian market is a pretty narrow, it's pretty small, it's not particularly well diversified, so having the opportunity to really go global and take advantage of the broader market basket in equity and fixed income is really important advantage to have in both enhancing return and managing risk.
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David Wolf: And that's particularly true when we have volatile times.
It's within volatility that really the ability to diversify away specific Canadian risk and look for opportunities where they present themselves really around the world, particularly in panicky type times, which come up now and again, I think is a really important advantage of the breadths and scope of our investment expertise.
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David Wolf: Well, I may have a little bit of bias here, but I think that it would be hard to find an investment firm that has more expertise in terms of global investing.
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David Wolf: We have 750 investment professionals around the world covering every market and every asset class basically that one could find. And certainly when you look relative to the capabilities of other shops, particularly in Canada, our global reach allows us to not only invest globally but to do so with the same level of expertise as we would, for example in the domestic market.
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David Wolf: We have a very broad range of asset classes available to us, both in Canada and abroad.
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David Wolf: And what that allows us to do is really craft a well-diversified portfolio that's going to be resilient in a wide range of market environments.
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David Wolf: The second big advantage of these funds is we're able to draw on the multiple dimensions of Fidelity's expertise in putting them together. So to give you an example, we can put together a great value manager with a great growth manager.
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David Wolf: In these kinds of portfolios, we can put them together, cancel out the style beds and…
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David Wolf: …so end up with a very balanced portfolio while still taking advantage of the expertise that these managers have in their given areas. And then the third important advantage, I think, is we have two ways to win in these portfolios. So we have the value that can be added among the security selectors with their bottom-up process, but also the value that we can add from a top-down perspective with our asset allocation process.
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David Wolf: If you look at our performance over time, global income, global balanced funds, and all of our managed portfolios, our top quartile, one-year, three-year, five-year, 10-year, and I think that performance really testifies to the fact that these are strong, well-balanced, well-diversified, one-stop portfolio solutions that…
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David Wolf: …frankly, I would put up there against anyone's anywhere.
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From time to time a manager, analyst or other Fidelity employee may express views regarding a particular company, security, and industry or market sector. The views expressed by any such person are the views of only that individual as of the time expressed and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time, based upon markets and other conditions, and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity Fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity Fund. Certain Statements in this commentary may contain forward-looking statements (“FLS”) that are predictive in nature and may include words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates” and similar forward-looking expressions or negative versions thereof. FLS are based on current expectations and projections about future general economic, political and relevant market factors, such as interest, and assuming no changes to applicable tax or other laws or government regulation. Expectations and projections about future events are inherently subject to, among other things, risks and uncertainties, some of which may be unforeseeable and, accordingly, may prove to be incorrect at a future date. FLS are not guarantees of future performance, and actual events could differ materially from those expressed or implied in any FLS. A number of important factors can contribute to these digressions, including, but not limited to, general economic, political and market factors in North America and internationally, interest and foreign exchange rates, global equity and capital markets, business competition and catastrophic events. You should avoid placing any undue reliance on FLS. Further, there is no specific intention of updating any FLS, whether as a result of new information, future events or otherwise.
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Meet David Wolf, Portfolio Manager with Fidelity Investments for two segregated funds on the Canada Life™ shelf, Fidelity Global Income Portfolio and Fidelity Global Balanced Portfolio. He shares why it’s so important for Canadian investors to go global and explains why Fidelity’s investment process and global portfolios are well-positioned to help. Looking outside Canada’s borders isn’t just about finding opportunities, it’s about increasing diversification – a critical part of weathering volatility. Through their research team and network of 750 investment professionals around the world, Fidelity examines global markets with a similar level of depth and expertise as they would with the domestic market. Their global reach helps them craft well-diversified portfolios that are designed to be resilient in a wide range of market environments.
The views expressed in this commentary are those of this fund manager as at the date of publication and are subject to change without notice. This commentary is presented only as a general source of information and is not intended as a solicitation to buy or sell specific investments, nor is it intended to provide tax or legal advice. Although we endeavour to ensure its accuracy and completeness, we assume no responsibility for any reliance upon it. A description of the key features of the segregated fund policy is contained in the information folder. Any amount allocated to a segregated fund is invested at the risk of the policyowner and may increase or decrease in value. The segregated funds and the corresponding underlying funds have similar investment objectives; however, the performance will not be identical. Any reference to performance reflects the performance of the underlying funds and not the segregated funds.
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