Desjardins Insurance is pleased to announce that new funds were launched on its group retirement savings platform on June 13, 2019. These funds, which are presented below, enhance our target date fund and US equity lineups.
Fidelity ClearPath® Institutional Funds
(Income, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060)
This family of target date funds allows members to benefit from an asset allocation that automatically adjusts based on their investment horizon. Over time, each fund’s asset mix shifts to reflect a lower risk tolerance until 20 years after its target retirement date. The funds’ asset classes and asset allocation glidepath are the same as for the retail version of the Fidelity ClearPath® Funds currently offered on the platform.
However, unlike the retail version, which is made up of actively managed underlying funds only, the Fidelity ClearPath® Institutional Funds combine active and index management, with the allocation between each varying by asset class based on market efficiency, size of the investment universe and manager capabilities. The average index allocation across all funds is 30%, mostly concentrated in government bonds and large-cap US equities.
Investment fees for the Fidelity ClearPath® Institutional Funds are also lower than the retail version.
DFS BlackRock® US Equity Index (Non-Registered) Fund
This fund is passively managed and aims to provide returns derived primarily from long-term capital appreciation by investing in a broadly diversified portfolio of US equity securities. Like the DFS BlackRock® US Equity Index Fund, currently available on the platform, this fund seeks to track the return and risk profile of the S&P 500. Its return objective is, however, reduced by 0.40% to account for the taxes withheld on dividends by the fund.
All investor types are permitted to invest in this fund, including non-registered plans and tax-free savings accounts (TFSA).
For more information about these new funds, please contact your client relationship manager.
Fidelity ClearPath® is a registered trademark of FMR Corp. and BlackRock® is a registered trademark of BlackRock, inc. Used with permission.