Our fixed-income solutions leverage the expertise of experienced portfolio managers who are backed by teams that specialize in a wide range of Canadian and global fixed-income asset classes.

We have been providing fixed-income solutions for more than 40 years and manage more than $1 trillion globally.¹

THE FIDELITY FIXED INCOME ADVANTAGE

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Extensive, independent and proprietary research spanning the capital structure

Proprietary, integrated and rigorous risk management platform

DISCIPLINED AND COLLABORATIVE TEAM APPROACH

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Our fixed-income specialist teams work in collaboration with our equity analysts to form a 360° view on issuers, providing information and screening advantage.

Our integrated approach enables us to increase the number and diversity of strategies employed in a portfolio.

PORTFOLIO DESIGN AND A CULTURE OF PRUDENT RISK MANAGEMENT

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We have strong expertise designing bespoke solutions for clients, including a dedicated team specializing in Liability-Driven Investing.

Portfolios employ proprietary risk measurement systems and are supported by strong compliance and oversight functions.

A CUSTOM APPROACH TO BALANCING RISK AND RETURN

A well-defined investment philosophy based on in-house credit, quantitative and macro research, along with specialist teams across the globe, ensures we deliver portfolios aligned with our clients’ investment goals.

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Liability Driven Investing (LDI)

Fidelity’s LDI solutions platform is based on four key principles:

Dedicated
Resources

Dedicated specialists with expertise in pension plan risk management across assets and liabilities.

Custom Portfolio Solutions

Real-world implementations that take into consideration current capital market dynamics and implementation challenges.

Strong Fixed Income Management

Seeks to consistently deliver alpha in a pension risk management framework.

Development of Customized Solutions

De-risking solutions that seek to meet the evolving needs of pension clients.

Investment Process

MEET THE LDI TEAM

Francois Pellerin LDI Strategist

François Pellerin is an LDI strategist in the Fixed-Income division at Fidelity Investments. In this role, he is a member of the Liability-Driven Investment (LDI) Solutions team and is responsible for developing and implementing pension risk management solutions.

Before joining Fidelity, Mr. Pellerin was the head of UBS’ Asset Liability Investment Solutions group and worked in the investment banking divisions of JPMorgan and Citi, as well as at Towers Perrin. Mr. Pellerin has been in the investments industry since 1995.

Dan Tremblay Director of Fixed-Income Solutions

Daniel Tremblay is Senior Vice-President and Director of Institutional Fixed-Income Solutions in the Fixed-Income division at Fidelity Investments. In this role, he oversees the Liability-Driven Investment (LDI) Solutions team and is responsible for developing custom hedging strategies for LDI clients, providing perspectives on de-risking solutions and representing the investment process in the marketplace.

Before assuming his current role, Mr. Tremblay held a number of senior positions at Fidelity, including institutional portfolio manager, senior vice-president and fixed-income investment director. He has been in the industry since 1995.

FIXED INCOME SOLUTIONS

Short Duration

Seeks to outperform the Bloomberg Barclays 1-3 Yr Government/Credit Bond Index over a full market cycle
Invests in a full spectrum of investment-grade securities with a focus on short-duration issues
Emphasis on sector valuation and individual security selection
Aims to be well-diversified across sectors, capital structure and issuers

Canadian Bond

Seeks to generate returns that exceed the FTSE TMX Canada Universe Bond Index over a full market cycle
Invests primarily in a well-diversified portfolio of Canadian dollar-denominated debt securities
Emphasis on sector valuation and security selection
Portfolio management team structure facilitates multi-dimensional investment perspectives

Canadian Long Bond

Seeks to generate returns that exceed the FTSE TMX Canada Long Term Bond Index over a full market cycle
Invests primarily in a well-diversified portfolio of Canadian dollar-denominated debt securities
Emphasis on sector valuation and security selection
Portfolio management team structure facilitates multi-dimensional investment perspectives

Global Bond

Seeks a high level of current income and aims to generate returns that exceed the Barclays Global Aggregate Bond Index over a full market cycle
Invests primarily in a well-diversified portfolio of global issuers, including emerging markets issuers
Flexibility to allocate up to 20% to sub-investment-grade debt securities
Emphasis on sector valuation and security selection
Portfolio management team structure facilitates multi-dimensional investment perspectives

Global Corporate Bond

Invests in a small number of high-conviction holdings
Bottom-up credit selection drives positioning
Diversified across industries and geographies
Beta kept close to neutral; alpha generation is key goal

Global Strategic Bond

Core portfolio objectives are to maintain low volatility, control drawdowns and offer low correlation to equities
Uses strategic and tactical asset allocation across five asset classes and their subsectors
Employs credit selection and overlay strategies
Returns driven by a balance between duration, credit spreads and inflation

Canadian Bond Core Plus

Seeks to generate returns that exceed the FTSE TMX Canada Universe Bond Index over a full market cycle
Invests in a broad spectrum of investment-grade and non-investment-grade fixed-income securities
Benefits from specialist sub-portfolio investment teams that manage low-correlated fixed-income asset classes, including U.S. high yield, floating-rate debt, emerging markets and global bonds
Highly diversified portfolio managed within a structured team environment

Canadian Long Bond Core Plus

Seeks to generate returns that exceed the FTSE TMX Canada Long Term Bond Index
Invests in a broad spectrum of investment-grade and non-investment-grade sectors, including high yield, emerging markets and global bonds
Benefits from specialist sub-portfolio investment teams that manage low-correlated fixed-income asset classes, including U.S. high yield, floating-rate debt, emerging markets and global bonds
Highly diversified portfolio managed within a structured team environment

Tactical Credit

Provides multi-sector allocation amongst a full suite of global fixed-income asset classes
Source of returns include asset allocation, sector rotation, security selection, yield curve positioning and foreign currency
Liquidity is maintained at an appropriate level to capitalize on dynamic opportunities
Seeks to maintain volatility commensurate with investment-grade bonds

Global Multi Asset Credit

Multi-strategy approach to fixed-income investing, targeting a real return of 3% over the market cycle
Primarily invests in higher-yielding credit markets, such as U.S. leveraged loans, high-yield bonds, emerging markets, hybrids, securitized debt and convertibles
Tactical allocation to investment-grade credit and sovereign bonds
Capital preservation is a priority

Liability Driven Investing

Multi-dimensional approach seeks to integrate LDI strategy analysis and consultation with best in class fixed-income portfolio management
Managed by dedicated specialists with expertise in pension plan risk-management across assets and liabilities
Seeks to consistently deliver alpha in a pension risk-management framework

Tactical Credit

Provides multi-sector allocation amongst a full suite of global fixed-income asset classes
Source of returns include asset allocation, sector rotation, security selection, yield curve positioning and foreign currency
Liquidity is maintained at an appropriate level to capitalize on dynamic opportunities
Seeks to maintain volatility commensurate with investment-grade bonds

Global Corporate Bond

Invests in a small number of high-conviction holdings
Bottom-up credit selection drives positioning
Diversified across industries and geographies
Beta kept close to neutral; alpha generation is key goal

Canadian Corporate Bond

Invests in a small number of high-conviction holdings
Bottom-up credit selection drives positioning
Diversified across industries
Beta kept close to neutral; alpha generation is key goal

High Yield Core

Seeks to outperform the BofA Merrill Lynch High Yield Master II Constrained Bond Index
Invests in U.S. high-yield corporate bonds and, to a lesser extent, bank loans, preferred and convertible securities
Emphasis on sector valuation and individual security selection
Focus on less efficient, middle-tier section of the high-yield market while selectively investing in lower-rated issuers

High Yield CMBS

Seeks to outperform the high-yield corporate bond market while providing a relatively high level of current income
Invests in a universe of investment-grade and non-investment grade commercial mortgage-backed securities (CMBS).
Security analysis focused on commercial real estate valuation and loan structure fundamentals

Leveraged Loans

Opportunistic portfolio that seeks to outperform the S&P/LSTA Leveraged Loan Index
Focuses on issuers' balance-sheet strength, collateral values, covenant protections, management quality and capital structure

Emerging Markets Debt

Seeks to outperform the JP Morgan EMBI Global Index
Extensive sovereign analysis
Research focuses on identifying countries that are not well understood and offer significant upside potential

Asian High Yield

Seeks a high level of current income and capital appreciation
Invests primarily in high-yielding, sub-investment-grade securities, or in high-yielding securities of sub-investment-grade issuers, all having their principal business activities in the Asian region
Hard currency focus while capturing current and potential growth of renminbi (RMB) High Yield

Emerging Markets Debt Franchise

Hard currency, local currency, corporate, total return and inflation-linked options available

Emerging Markets Debt Hard Currency

Aims to achieve income and capital appreciation by primarily investing in emerging markets debt securities – sovereign and quasi focus
Up to 20% may also be invested in debt securities issued by corporations operating and/or domiciled in emerging markets countries

Emerging Market Debt Local Currency

Aims to achieve income and capital appreciation by primarily investing in investment-grade and sub-investment-grade debt securities denominated in local emerging markets currencies
Up to 20% may also be invested in debt securities issued by corporations operating and/or domiciled in emerging markets countries

Emerging Market Corporate Debt

Aims to achieve an attractive level of income with the potential for capital appreciation by investing primarily in the debt of companies domiciled in emerging markets regions that typically issue in USD
Up to 20% may also be invested in local currency issuance and up to 25% in sovereign bonds of emerging markets issuers
Uses an active, bottom-up fundamental investment approach supported by intensive credit research
Special focus on diversification, liquidity and downside protection

China Renminbi (RMB) Bond

Aims to provide income and capital growth
Investments focus on securities denominated and settled in RMB, as well as securities issued by governments and businesses across the Asian region
Security selection focuses on relatively higher-quality issuers, including investment-grade governments, financial institutions and corporates
Non-RMB denominated securities are hedged back to RMB to maintain currency exposure

This information is designed to provide an indication of certain attributes of these strategies and is subject to change. For full details of the applicable mandates, including the investment objectives, please contact Fidelity Canada Institutional.

We offer a comprehensive lineup of institutional investment strategies and mutual funds available on all major recordkeeping platforms.

Learn more

MEET THE FIXED-INCOME LEADERSHIP TEAM

Nancy Prior President, Fixed Income

Nancy Prior is President of Fidelity’s Fixed-Income and Multi-Asset Class Strategies, where she has strategic oversight of Fidelity’s Global Bond, Money Market, Asset Allocation and Fidelity Institutional Asset Management^SM (FIAM) Equity groups.

Ms. Prior joined Fidelity in 2002 and has held several positions within the Fixed-Income legal team, including Senior Vice-President and Deputy General Counsel. Before joining Fidelity, Ms. Prior was vice-president, general counsel and secretary at Advantage Schools, Inc., and a business and finance associate at Mintz, Levin. She has been in the investments industry since 1994.

Jamie Pagliocco Chief Investment Officer, Bonds

Jamie Pagliocco is Chief Investment Officer in the Bond group within the Fixed-Income division at Fidelity Investments. In this role, he is responsible for the management of the Bond division’s portfolio managers, oversight of investment strategies and coordination of activities to ensure consistency and stability in the investment process.

Mr. Pagliocco joined Fidelity in 2001 and served as Director of municipal bond portfolio managers and as a portfolio manager covering several municipal bond funds. Before joining Fidelity in 2001, Mr. Pagliocco worked in institutional sales and trading at William E. Simon and Sons Municipal Securities. He has been in the investments industry since 1990.

Steve Ellis Global Chief Investment Officer, Fixed Income, Fidelity International

Steve Ellis is the Global Chief Investment Officer for Fixed Income based in London.

Steve joined Fidelity in June 2012 as a Portfolio Manager based in London managing Fidelity’s key Emerging Market debt funds. In 2018 he also become Head of the European Portfolio management team in Fixed Income and was appointed Global Chief Investment Officer for Fixed Income in 2019.

Prior to joining Fidelity, Steve worked as a Portfolio Manager at Goldman Sachs Asset Management from 2006 to 2012. He started his career in 1993 within economic and market research positions at NatWest Markets, ING Barings and Lehman Brothers.

¹ Fixed income assets under management as at March 31, 2017, in Canadian dollars.

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