Canada's Top Fund Prospects in 2024: Fidelity Global Equity Plus

This new addition to our list of Canadian funds is an uncorrelated trio of successful managers.

Michael Dobson 19 March, 2024 | 4:30AM
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Read the rest of Morningstar Canada's Q1 2024 Prospect List here, and tune in for our next featured addition tomorrow.

Why Did It Catch Our Eye?

Morningstar knows Fidelity Global Equity+ Fund’s three sleeve managers well. Daniel Dupont’s Fidelity Canadian Large Cap Fund earns a Gold Morningstar Medalist Rating, while Hugo Lavallée’s Fidelity Greater Canada Fund and Mark Schmehl’s Fidelity Global Innovators Fund both earn Silver Morningstar Medalist Ratings.

What Is It?

The fund divides assets equally across three strategies with differentiated yet complementary investment styles. Dupont’s risk-aware approach, Lavallée’s contrarian process, and Schmehl’s growth style result in a well-balanced and well-diversified, global portfolio.

Why Is It on the List?

This one fund provides access to three highly rated strategies with proven long-term diversification benefits. Excess return correlations between the three main funds have been low, ranging from negative 0.22 to 0.67 over the last five years. One third of Dupont’s sleeve is allocated to Fidelity Global Value Long/Short Fund, which is negatively correlated to Lavallée and Schmehl’s funds and adds further diversification. Schmehl and Lavallée tend to perform better in equity market rallies while Dupont shines in market drawdowns. So, the fund has a good shot at participating in up markets and limiting losses on the downside.

6-Month Annualized Excess Return and Correlation Table

Compared Against Respective Morningstar Category Indexes

Source: Morningstar Direct.

Fidelity Global Value Long/Short is not in the graphic due to its short performance track record.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Fidelity Canadian Large Cap Sr F55.33 CAD0.50Rating
Fidelity Global Innovators Cl F38.25 CAD-0.18Rating
Fidelity Greater Canada Sr F29.73 CAD1.78Rating

About Author

Michael Dobson  is a Manager Research Analyst at Morningstar Canada.

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