In the coming quarters, Fidelity will be adding alternative asset
classes to the Fidelity ClearPath®[ Note 1 ]. Institutional Funds, a target date fund series available on
our Desjardins Insurance group retirement savings platform. The
fund manager expects to gradually build its position in
alternative asset classes over the next several years, with a
total strategic exposure remaining below 10% of each fund. The
actual allocation in alternatives is expected to vary over time
relative to this target based on active asset allocation views,
client cash flows, market performance and liquidity dynamics.
Fidelity plans to use an open architecture model within their
alternatives sleeve, which should allow them to source strong
managers in various alternative asset classes, regardless of
whether they’re external or internal to the global Fidelity
This change won’t have any impact on the funds’ investment
objective or investment fee charged directly by Desjardins
Insurance. The investment vehicles used to access alternative
asset classes will, however, charge an embedded investment fee
that will reduce their gross returns.
About the Fidelity ClearPath® Institutional Funds
This target date solution combines active and index underlying
strategies, because it provides the potential for excess return
through active management while leveraging index building blocks
where markets may be more efficient. The funds’ asset allocation
changes based on a predetermined glidepath designed to grow more
conservative over time, until the target retirement date, and
during a period of approximately 20 years after this date.
For more information about this change, don’t hesitate to contact
your client relationship manager.