TORONTO, May 15, 2024
/CNW/ - Fidelity Investments Canada ULC (Fidelity) today announced
plans for the following mergers and terminations with an expected
effective date of on or around September 6,
2024 (the "Effective Date"), subject to securityholder
approval in certain cases.
As part of its normal course of business, Fidelity regularly
reviews its products with the goal of streamlining offerings for
investors. The proposed mergers and terminations will result in a
more simplified product line-up that is easier for investors to
navigate. As markets continue to evolve, these funds have
generally seen little investor demand.
Proposed Mutual Fund
Mergers
Discontinuing
Funds
|
Continuing
Funds
|
Event
|
Vote
Required
|
Fidelity ClearPath®
2005 Portfolio
|
Fidelity ClearPath®
Income Portfolio
|
Taxable
|
No
|
Fidelity American
Equity Systematic Currency Hedged Fund
|
Fidelity American
Equity Fund
|
Tax-deferred
|
Yes
|
Fidelity Small Cap
America Systematic Currency Hedged Fund
|
Fidelity Small Cap
America Fund
|
Tax-deferred
|
Yes
|
Fidelity U.S. Dividend
Systematic Currency Hedged Fund
|
Fidelity U.S. Dividend
Fund
|
Tax-deferred
|
Yes
|
Fidelity U.S. Focused
Stock Systematic Currency Hedged Fund
|
Fidelity U.S. Focused
Stock Fund
|
Tax-deferred
|
Yes
|
Fidelity Women's
Leadership Systematic Currency Hedged Fund
|
Fidelity Women's
Leadership Fund
|
Tax-deferred
|
Yes
|
Fidelity Tactical
Strategies Fund
|
Fidelity Global
Balanced Portfolio
|
Tax-deferred
|
Yes
|
Fidelity Global Small
Cap Fund
|
Fidelity Global Small
Cap Opportunities Fund
|
Tax-deferred
|
No
|
The proposed mergers, as indicated in the table above, are
expected to be completed on a tax-deferred basis, with the
exception of Fidelity ClearPath® 2005 Portfolio. The Fidelity
ClearPath® 2005 Portfolio merger is expected to be completed on a
taxable basis.
With the exception of the mergers involving Fidelity ClearPath®
2005 Portfolio and Fidelity Global Small Cap Fund, securityholder
meetings in respect of the proposed mergers for all the other
discontinuing funds, as indicated in the table above, will be held
virtually on or about July 24, 2024
to seek securityholder approvals. Investors in Fidelity ClearPath®
2005 Portfolio and Fidelity Global Small Cap Fund will receive
further details regarding these mergers in a separate notice to
securityholders that will be circulated at least 60 days before the
Effective Date.
If the proposed mergers that require a vote are approved, as of
the Effective Date, securityholders will automatically cease to
hold securities of the discontinuing funds and will become
securityholders in the respective continuing funds, as
applicable.
Since each of the Proposed Mutual Fund Mergers meets the
parameters of Fidelity's Fund Merger Policy, the Independent Review
Committee of the discontinuing funds has provided its positive
recommendation or approval, as applicable, in the form of
standing instructions that each merger, if implemented, would
achieve a fair and reasonable result for the discontinuing
funds.
Further details regarding the proposed mergers that require a
vote will be sent to securityholders in advance of the
securityholder meetings. Investors in these funds will be able to
voluntarily switch into other Fidelity funds or redeem their
securities prior to the Effective Date. Investors should note that
there may be tax implications as a result of this voluntary switch.
The discontinuing funds will generally be closed to new purchases
by new investors as of today.
Proposed ETF and ETF Fund
terminations
- Fidelity Total Metaverse ETF (FMTV)
- Fidelity U.S. Dividend for Rising Rates Currency Neutral ETF
(FCRH)
- Fidelity U.S. Low Volatility Currency Neutral ETF (FCLH)
- Fidelity U.S. Momentum Currency Neutral ETF (FCMH)
- Fidelity Canadian High Quality ETF Fund
- Fidelity Canadian Low Volatility ETF Fund
- Fidelity International Low Volatility ETF Fund
- Fidelity Total Metaverse ETF Fund
- Fidelity U.S. Dividend for Rising Rates Currency Neutral ETF
Fund
- Fidelity U.S. Dividend for Rising Rates ETF Fund
- Fidelity U.S. High Dividend Currency Neutral ETF Fund
- Fidelity U.S. High Quality Currency Neutral ETF Fund
- Fidelity U.S. Low Volatility Currency Neutral ETF Fund
Investors in the terminating ETFs and ETF funds will be sent a
notice of termination at least 60 days prior to the Effective Date.
The terminating ETFs are expected to be delisted from the Toronto
Stock Exchange or Cboe Canada Inc., as the case may be, at
Fidelity's request, at the close of business on or about
September 6, 2024. In addition,
the terminating ETFs and ETF funds will generally be closed to new
purchases by new investors as of today.
Investors will be able to switch into other Fidelity ETFs and/or
mutual funds or redeem their securities prior to the Effective
Date, subject to the procedures and requirements set out in the
relevant prospectus(es).
Proposed Corporate Class termination
- Fidelity U.S. Growth Opportunities Systematic Currency Hedged
Class
The proposed termination of Fidelity U.S. Growth Opportunities
Systematic Currency Hedged Class is subject to the approval of
securityholders under applicable corporate law. A securityholder
meeting in respect of such approval will be held virtually on or
about July 24, 2024 where
securityholders will be asked to approve certain amendments to the
articles of Fidelity Capital Structure Corp. with respect to the
cancellation and redemption of shares of this class fund in
connection with the proposed termination.
Further details regarding the proposed termination will be sent
to securityholders in advance of the securityholder meeting.
Investors in Fidelity U.S. Growth Opportunities Systematic
Currency Hedged Class will be able to voluntarily switch into other
Fidelity mutual funds or redeem their securities prior to the
Effective Date. In addition, this class fund will generally be
closed to new purchases by new investors as of today.
Fidelity encourages investors in the terminating or discontinuing
funds to speak with their financial advisors about the proposed
mergers and terminations and to review their options.
About Fidelity Investments Canada
ULC
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.
As a privately-owned company, our people and world class
resources are committed to doing what is right for investors and
their long-term success. Our clients have entrusted us with
$241 billion in assets under
management (as at May 7, 2024) and
they include individuals, financial advisors, pension plans,
endowments, foundations and more.
We are proud to provide investors a full range of investment
solutions through mutual funds and exchange-traded funds, including
domestic, international and global equity, income-oriented
strategies, asset allocation solutions, managed portfolios,
sustainable investing, alternative mutual funds and our high net
worth program. Fidelity Funds are available through a number of
advice-based distribution channels including financial planners,
investment dealers, banks, and insurance companies.
Commissions, trailing commissions, management fees, brokerage
fees and expenses may be associated with investments in mutual
funds and ETFs. Please read the mutual fund's or ETF's prospectus,
which contains detailed investment information, before investing.
Mutual funds and ETFs are not guaranteed. Their values change
frequently, and investors may experience a gain or a loss. Past
performance may not be repeated.
Find us on social media @FidelityCanada
www.fidelity.ca
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SOURCE Fidelity Investments Canada ULC