Our approach is powered by glide path design and a balanced approach to risk.
1 As at December 31, 2020.
Fidelity ClearPath Portfolios are designed for Canadian investors. Shaped by key drivers of long-term outcomes, our unique glide path reflects actual behaviours of Canadian plan members.
Glide path design is informed by research in three critical areas:
Long-term historical and forward-looking perspective on expected return, risk and correlations over a 20-year period.
Working with Canadian recordkeepers, as well as Statistics Canada, we analyze the characteristics and investment behaviour of over one million Canadian retirement savers.
Detailed analysis and modelling to ensure that asset allocation and structure for the portfolios balance return needs with appropriate risk management.
With many Canadians depending on defined contribution plans as their primary source of retirement income, plan sponsors can design their plans to target specific income replacement goals, helping members maintain their standard of living in retirement.
It is important to recognize that savings alone may not provide an adequate level of income replacement throughout a retirement that could last 25–30 years.
We believe the greatest risk for an investor saving for retirement is experiencing a shortfall in retirement income.
Our glide path is designed to provide members with active asset allocation, with the goal of delivering additional income to last through retirement.
The investment process for our target date strategies is designed to be flexible in order to navigate changes in capital markets and to adapt to meet the evolving needs of plan members.
Fidelity offers two differentiated target date solutions, providing plan sponsors with choice in selecting a solution that is right for their plan members: