Fidelity Canadian Asset Allocation Portfolio Management change

July 24, 2023

Plan sponsors may wish to consider whether this investment news has any implications for the investment options available within their plans. Sun Life Assurance Company of Canada purchases units of the fund listed below, which is established as a segregated fund under the Insurance Companies Act (Canada).

In early 2023, Fidelity announced the promotion of Geoff Stein, co-Portfolio Manager of Fidelity Canadian Asset Allocation (CAA) Fund. He is now Chief Investment Officer, Global Asset Allocation (GAA) Team. He assumed the role from Bill Irving, who was recently named Head of Fidelity Asset Management Solutions. As CIO, his responsibilities will include oversight of the portfolio management and trading/portfolio analysis of GAA-managed strategies. These include target date and multi-asset solution strategies such as CAA.

Consequently, Fidelity has announced that David Tulk would assume co-portfolio management for CAA, alongside David Wolf. Tulk joined Fidelity in 2016 as a Portfolio Manager and member of the Global Asset Allocation team. He maintains portfolio management responsibility for other funds within the GAA group. Tulk and Wolf now report directly to Stein.

As co-portfolio managers on the strategy, Tulk and Wolf now make final decisions from an asset allocation perspective. The underlying portfolio managers responsible for managing their respective asset classes and/or underlying funds will continue to be support Tulk and Wolf.

GRS Investment Solutions View:

We’re not overly concerned with this change. Stein’s influence will continue as he assumes a larger mandate within the broader organization. Further, Tulk is an experienced portfolio manager and a tenured member of the GAA group who will work alongside Wolf, creating continuity in portfolio management for the CAA Fund.

Fidelity GAA takes a team-based approach with no one individual being solely responsible for investment allocation decisions.

Given these changes, we have placed this fund under Additional Monitoring on our Watch List (the least severe category). We will provide updates as necessary.

Do you have to take any action?

You and your members don’t have to take any action as a result of these changes.

Questions?

Please contact your Sun Life Group Retirement Services representative.