FidelityConnects: Market and product trends: The signals shaping portfolios

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Hello, and welcome to Fidelity Connects.

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I'm Dave Bushnell, Senior Vice President of Advisor Sales.

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2025 was a standout year for Fidelity Canada and it was all

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driven by our advisor community.

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Through our webcasts we connected with more than 16,000 advisors

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like you directly with our experts, sharing timely insights across

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markets and strategies.

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Whether you joined us online or at one of our 33 in-person events

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your engagement made a real impact.

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We're also proud that we've issued more than 500,000 CE credits

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in support of your ongoing professional growth.

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As we look to 2026 and beyond Fidelity Canada is focused

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on going even further, bringing you sharper insights, greater access to

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our experts and practical support to help navigate what's

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next with confidence.

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Excited as always to be speaking with my friend, and I'm gonna say long time

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we've been doing these for, I want to say four or five years now, and that's

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our head of product, Andrew Clee. So Andrew, welcome, good to see you.

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Thank you for having me.

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Andrew, they always put us on these shows. We do generally year recaps, what's

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going on? I was thinking yesterday, oh my goodness, we have a lot to talk about

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today. We're gonna get into what we think for this year but let's perhaps, just

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for everybody's benefit, let's do a recap of last year.

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It was a heck of a year. You and I have spoken about this.

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I thought a fun place to start would be how did the industry do because both on

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the ETF and the mutual fund side it was a good year.

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Yeah, it was a great year.

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Starting with funds, we're still waiting on the official December numbers but

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it's looking like the industry probably posted about plus $40 billion.

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Contrast that versus prior years, we see negative years, flat years,

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really, really healthy industry flows.

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When you peel back the onion, though, I think there was a handful of major

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winners and then we saw some redemptions at a lot of the industry level.

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It's becoming more concentrated, I would say, if the performance isn't there

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you're probably not receiving those inflows that we see at the industry level.

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ETFs on the other hand, huge year, record, 125 billion,

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66 of that went into equity so it was still a risk-on environment.

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It's really easy in hindsight when you say, okay, why did so much money chase

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equities? You go, well, look, the performance, Canada did

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31.5%, MSCI EAFE, the international developed, did 25%, US did 18

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in US dollars.

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But the volatility to get there, I think we were talking about it April 2nd,

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Liberation Day, when they announced the tariffs.

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To think we'd end up at a 30 in Canada, 25 international and an 18 in

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the US, I think a lot of people would have been questioning that trajectory so

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it kind of speaks to the importance of financial advice and staying invested

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because it was a volatile year.

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You have a few numbers for us on that, you and I have talked a lot about this.

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Again, we talked about the importance of working with an advisor, the

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importance of financial advice. Yes, it's picking great stuff, like Fidelity,

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but it's also keeping people in markets and talking them through that.

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You mentioned Liberation Day, do you want to maybe go a little more in depth as

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to how that really shaped last year?

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I do want to clarify, Liberation Day was kind of in history when

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the market reopened after the First World War, but they did announce the tariff

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plan on April 2nd this year and the administration did call it Liberation

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Day. What was interesting is we saw a huge amount of volatility

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for about a week. You can remember the NASDAQ dropping 3 and 4% a

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day. On April 9th they actually gave clarity to what they

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were going to do with the tariffs, and everyone's going to remember.

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The S&P did 10% on April 9th in a single day.

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Those days don't come often in my career, a lot of people's career.

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Just to put it in context, if you had sold between April 2nd and April 9th and

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done nothing your return for the year would have been 7%.

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If you had done nothing and stayed invested we're getting close to an 18%

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return. It's kind of the importance of missing those best days has

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such an impact on your total return.

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I can't think of a better year. COVID was obviously.

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Incredibly volatile year but the last year was too.

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When you take a step back and say, okay, performance was fantastic in 2025,

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I don't know if every investor realized that total return because

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of emotional behaviours and just fear around the volatility.

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What's funny, it goes back to, I remember when I started at Fidelity over 20

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years ago there was that piece that if you miss the 20 best days in the market

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over the last X number of years it can really make a huge difference.

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Now, to your point, I don't know how many 10% in one days they had back when

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that piece was created.

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I don't have that stat but I can tell you it's rare.

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Also, if you went back to the beginning of the year and said who's going to

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take the crown on best performing market? Canadian equity, sneaky, 31.5%,

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outperformed international stocks.

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I think everyone's saying, the pundits, we needed to risk buy internationally,

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there wasn't much talk in the news about investing in Canada.

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There's a lot of concern around the health of our economy and the impact

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tariffs could have and our reliance on the US but gold had an incredible year

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and mining is quite a significant portion of our index so we'll

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take the crown in Canada for last year.

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Let's dive deep into that because again, you and I have been doing this for

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many years and I feel like our conversation was always it was FAANG and then we

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moved from FAANG to Mag 7 and going into last year I think we would have

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presumed it would have been much of the same. But to your point, when you tally

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at the end of the year it was international markets, it was Canadian markets,

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it wasn't all just the US running.

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In your mind, you build products, you spend time with this every day, how has

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that perhaps changed people's mentality, I want to say at least the last five

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years it's been US all the way.

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Now people are really looking more to Canada again, international again.

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How are you seeing that?

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When you actually peel back where did money go in the

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ETF market last year, US was the big winner, 66 billion of

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flows into equity ETFs last year.

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US took in, let's call it 20.

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Canada was 13, that's an impressive feat.

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I've been covering the ETF industry for more than 15 years

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and Canada never really posed that kind of weight against the US equity flow.

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Interestingly, international and global also took in about 16 apiece, 15, 16,

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somewhere around that number.

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If you put global alongside international, global has

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heavy exposure to US but those two categories

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combined, even when you say, okay, 40% of it's gonna be ex-US, actually

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outpaced the US equity flow.

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I think even last year we were just saying because of the concentration in

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the US you might want to look to a global manager that

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can actually underweight the US market, take advantage of international

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opportunities. Patrice's Global Equity Fund would be a prime example where

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he went significantly underweight the US in favour of international, posted

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stellar, stellar returns.

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If you're not fully willing to bail on the US, and I think that's a very

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difficult conversation to have, to say do

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I want to be completely wrong on the FAANGs?

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I understand the concentration issue but by buying a global manager that's

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active you actually kind of get those tilts on your behalf without having to

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bail. I think that's kind of why we saw such growth in the global equity ETF

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flows that we wouldn't have seen historically.

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Do you also see it as people ...

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and I'll even pick on global managers, the indexes have moved, the MSCI World,

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if you just hold benchmark it's higher in the

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US. Do you think it was a lot of also managers going, I've run a little hot in

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the US and I'm gonna peel back that exposure.

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Do you think a lot it was reallocating, be it pensions, be it everybody else,

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to that, or do you think it's new money going in?

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How do you think people are viewing this? To your point, especially for the

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advisors [indecipherable], do you think this is people actually reallocating or

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do you think this is just new money coming in going a different place?

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I think it's both. When the US runs that hot for that long, it's important to

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remember from 2009 to the bottom,

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let's call it '22, we had the inflation scare where we saw some

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value-oriented stuff really work that would be ex-US.

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But holistically let's say it was a 15-year

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US dominant run so you are going to have pensions rebalancing, saying this is

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getting overweight to my strategic mix but you also saw a ton of people chasing

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the valuation in both Canadian and international so I think you saw more

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than rebalancing and just new money that otherwise would have been in the

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US being reallocated internationally.

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Even you hear it from our CIOs, our analysts, our PMs, is I can find

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a like for like company in the European or Asian markets that trades

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at a ridiculously cheaper multiple compared to the US equivalent and they might

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have better upside. I think there's the fundamental arguments,

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there's the rebalancing arguments, I think you're seeing it come from

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everywhere.

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It all comes together. Now, you mentioned Patrice, let's go to Fidelity for a

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second. We have, obviously, our advisor partners to thank.

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Last year was the best year we're gonna post with our books now being closed so

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again, a huge thanks to all of our partners.

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What was very interesting with you and I, there was lots of All-in-Ones, there

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was lots of our Fidelity managed portfolios but something happened that you and

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I have talked about it. This is something that's very exciting or very

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terrifying. We sold a lot of Mark and we sold a lot of Dan.

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Perhaps maybe touch on the FMPs and All-in-Ones but also perhaps on

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people like Mark and Dan.

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Last year was interesting.

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You very rarely see momentum and value work at the same time.

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I like to look at our factor ETFs, which are components of the All-in-Ones,  in

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the sense that they're systematically and quantitatively driven so they

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are going to follow that factor, that investment style, no matter what

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happened. Just to put it in context, in every single market being

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Canada, international or US

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we had momentum outperform the index and value outperform the index.

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It's quite rare...

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So a good year for Dan, a good year for Mark, said another way.

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Yes, good years for both of them.

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The interesting thing about momentum, I call it a chameleon or

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it's a utility player, and baseball would be a good example, it can play

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any position in the sense it can play any investment style.

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Why was Canadian momentum our best performing factor on the

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calendar year? It's because it picked up the gold trade.

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Gold was doing 100+%.

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What's also interesting is gold was cheap going into it.

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We've talked about the run in gold but being a cyclical

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sector it did have depressed valuations so value also picked

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up gold. You actually saw a year where momentum

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was skewing a bit value-ish in certain markets because it

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is designed to chase the momentum of what's performing, so to say momentum is

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a growth strategy I think would be misinformed because momentum can look like

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value too at different points of the cycle.

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Interesting. Let's change gears, let's go to 2026.

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I feel like every year it's always a crazy start to the year.

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Again, I should do a plug and I'm gonna do it several times, we do hope that

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everybody can join us next week for our great VISION show that's going to be

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live here in Toronto but obviously broadcasted right across Canada.

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When you're looking at this year, I want to start with something just because

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it's going crazy, can we just start with gold.

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Gold yesterday, I want to say was up, I think it was 3% is what I

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saw at the end of the day.

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This thing has gone, I mean, I always think of gold between 1,800

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and 2,000 I feel like for a decade and now all of a sudden it's just

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gone and it looks like it's not looking back.

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When you look at this, what are you thinking when you're looking at gold?

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I think there's so many things playing into gold right now, it's kind of like a

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perfect storm. You've got geopolitical risk

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so gold yesterday was flying on the back of that.

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The Japanese bond market was also a significant event yesterday,

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and I think we should touch on that just in the sense that when you see those

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traditional safe haven bonds that we would say is a store of value

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behave the way that they did in Tokyo yesterday, gold's going to catch

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a bid because it's a safe haven asset.

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There's a lot of friction about what's happening in the Federal Reserve in the

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US right now. The US Treasury market is a store of value, the US dollar

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is a safe haven asset and if that's at risk gold's where a lot

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of the industry is looking right now. It's kind of a combination of what's

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happened politically, what's happening in the safe haven

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markets and what's happening on the geopolitical level that's kind all fueling

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this.

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Let me jump in there. Again, not that we can see the future

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but if there is, I mean, you saw the headline yesterday, I think it was

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Greenland. It wasn't a crazy amount of money, a couple hundred million dollars,

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but if US debt is dumped, in theory that plays into this

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as well.

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It does, no doubt.

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I won't speculate on how these tariff negotiations play

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out but it's important to remember that the rest of the world owns a

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significant amount of US Treasuries and the US administration appears

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to want to keep that yield curve low and to

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address their agenda, affordability, all that stuff like mortgage prices,

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directly tied to the US yield curve.

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A response could be that if these want to retaliate through

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tariffs you could also unload US Treasuries which would force the yield

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curve higher. I can't speculate on that but that would feed into

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gold as a preferred asset.

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There's also the argument that once yields get high enough they become so

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attractive just from a total return standpoint and a coupon clipping standpoint

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that money finds its way back to the bond market.

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It's finding that appropriate level of what the risk-reward is

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versus the yield.

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We did see the yield curve explode through the inflation rally.

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Money jumped in because the coupons were 5%, let's say.

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When you can have a coupon that matches your duration that's pretty attractive.

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It's really tough to predict how these negotiations are going to play.

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Hello, investors. We'll be back to the show in just a moment.

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I wanted to share that here at Fidelity, we value your opinion.

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Periodic draws ending by March 30th, 2026.

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And don't forget to listen to Fidelity Connects, the Upside, and French

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DialoguesFidelity podcasts available on Apple, Spotify, YouTube, or wherever

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else you get your podcasts. Now back to today's show.

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Let me ask you a question.

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Many people, we're not gonna solve this, so many people like to talk about what

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actually is gold, how does it play and how does it react?

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I want to change the conversation a bit.

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What is crypto? Let's start with gold.

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Do you see the way gold has been reacting, do you it that it's

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doing what it's supposed to do from a textbook point of view?

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I do.

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The textbook would say a store of value, medium of exchange.

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Crypto also is that. Gold's also been a decent inflation hedge historically, it

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did that, not as well as Bitcoin did in the 2022

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run-up. Bitcoin led it, gold followed it

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but it is behaving more as a textbook safe haven and doing what

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it kind of was designed to do, or the argument for the investment historically.

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Bitcoin on the other side did not.

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Bitcoin, I'm going to quote Jurrien, it's Dr. Jekyll and Mr. Hyde, which one

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are we getting?

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This is why I wanted to ask you because everyone's always said, and I

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remember when you and I first, I think, got together on one of these programs

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years ago, it was, well, is it like gold, is it an alternative to gold because

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it's going to act the same way.

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Now in the last, I'm just using the last three days, US goes down, it goes

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down, gold, they're almost acting as complete opposites.

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I don't know which one's the evil one, Dr. Jekyll and Mr. Hyde.

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I need to reread that story to my children.

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It's acting like a risk asset right now.

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It is behaving like a high valued equity.

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We've seen it behave as a risk-off too.

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I remember waking up one Saturday night to geopolitical news and

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Bitcoin's up 5% on the weekend.

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I came in on Monday morning and it was back to flat.

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I was like, okay, are people buying the news on the weekend because

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the Treasury market's closed or the gold market's closed and using that...

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Gives us something to fret about on the weekends, right?

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It is behaving like a risk asset right now and it does change over

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time. In 2023 and 2024 it was our best performing asset

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in the All-in-Ones. It was our worst performing asset in 2025.

16:32.558 --> 16:36.495
We've looked very smart and then people have questioned it in other years.

16:36.495 --> 16:40.599
In 2022 it was down 60+% and we still beat the passive peers

16:40.599 --> 16:42.301
in 2022.

16:42.301 --> 16:45.104
I think it just speaks to the importance of diversification in your portfolios.

16:45.104 --> 16:49.141
It is behaving like a risk

16:49.141 --> 16:50.909
asset to start off the year.

16:50.909 --> 16:55.014
It certainly seems to be. It'll be interesting to watch the flows into both, I

16:55.014 --> 16:57.282
think, as well for this year.

16:57.282 --> 17:01.086
We've had someone send a note in to us, silver.

17:01.086 --> 17:02.654
Yeah, it's interesting.

17:02.654 --> 17:04.623
Interesting that it also has become popular again.

17:04.623 --> 17:07.659
I find it interesting that when gold seems to become popular it gets back into

17:07.659 --> 17:11.463
the conversation. How do you see it playing into all this?

17:11.463 --> 17:15.634
Silver's really interesting because if you think about the gold to silver ratio

17:15.634 --> 17:20.239
it's kind of like a spread on the valuations of both the precious metals.

17:20.239 --> 17:25.644
Silver really lagged the move in gold.

17:25.644 --> 17:28.547
It's not as valuable and it's pretty heavy so storage costs are a significant

17:28.547 --> 17:30.516
factor there.

17:30.516 --> 17:34.820
But it really snapped in Q4 and then people got concerned

17:34.820 --> 17:38.957
that the ratio was getting a little too tight.

17:38.957 --> 17:43.295
It trades like gold and there's spreads or

17:43.295 --> 17:47.366
relative valuations kind of where it's trade relative and I think it

17:47.366 --> 17:50.903
got a little too tight which is why we saw it blow off a little bit.

17:50.903 --> 17:55.607
It does play into it but I think the argument as a safe haven relative

17:55.607 --> 17:58.977
to gold is not as significant on the silver trade but it is a precious metal at

17:58.977 --> 18:00.112
the end of the day.

18:00.112 --> 18:03.215
Let me ask you a question as someone that builds product.

18:03.215 --> 18:07.186
For many years, I'll say there was always gold, there wasn't Bitcoin

18:07.186 --> 18:10.856
if I'm going back far enough, when you think about creating new products are

18:10.856 --> 18:13.392
you thinking more now about, for instance, the All-in-Ones,

18:13.392 --> 18:15.227
how do you think of all that?

18:15.227 --> 18:19.364
We did make Bitcoin permanent, we did that in

18:19.364 --> 18:24.937
2022. That was as a response to

18:24.937 --> 18:29.108
an appropriate way to incorporate Bitcoin into a portfolio from a

18:29.108 --> 18:32.077
risk standpoint.

18:32.077 --> 18:36.081
There was a lot of Canadians ... there was a survey done by the OSC in 2019

18:36.081 --> 18:38.951
and at that point in time something like 20% of Canadians already owned

18:38.951 --> 18:39.985
Bitcoin,

18:39.985 --> 18:43.755
What was really interesting with the study is people were either dramatically

18:43.755 --> 18:47.559
overexposed, it was a way too large percentage of the portfolio, or a way too

18:47.559 --> 18:49.361
small per cent of the portfolio.

18:49.361 --> 18:53.332
We kind of peel back the onion and what we do is we say, okay, we have

18:53.332 --> 18:55.701
growth investors, we have conservative investors, we have balanced investors,

18:55.701 --> 18:59.771
it's all around your investment horizon but how much Bitcoin

18:59.771 --> 19:03.742
can you put into a portfolio without changing the risk

19:03.742 --> 19:07.946
profile? There's an argument for diversification and there's

19:07.946 --> 19:12.317
argument for total return but what we're really concerned was the impact on

19:12.317 --> 19:16.288
the risk profile. I can't say I'm going to put 10% of Bitcoin

19:16.288 --> 19:20.159
into a balanced portfolio because it is a volatile asset and I don't want to

19:20.159 --> 19:22.961
change that balanced investor into a growth investor.

19:22.961 --> 19:26.999
We ended up at 3% for growth, 2% for balanced, 1% conservative.

19:26.999 --> 19:30.202
What we saw was that was not going to have a material impact on the total

19:30.202 --> 19:34.072
portfolio volatility because it's Dr. Jekyll and Mr. Hyde.

19:34.072 --> 19:36.942
Sometimes it's a risk asset, sometimes it's not.

19:36.942 --> 19:40.746
We do see that diversification benefit throughout time.

19:40.746 --> 19:43.448
That was our approach to incorporating of it.

19:43.448 --> 19:47.386
As it relates to commodities,

19:47.386 --> 19:51.657
there's two types of investors in commodities and I would alongside of gold

19:51.657 --> 19:54.793
you either rent gold or you own gold.

19:54.793 --> 19:58.997
I think a lot of people, which I would say believe in the commodity

19:58.997 --> 20:02.935
complex or the gold complex, would buy that for the long run,

20:02.935 --> 20:07.973
not care about the volatility of it. I remember starting my career,

20:07.973 --> 20:12.177
it's 2008, gold was on its way to 1,200.

20:12.177 --> 20:14.580
Goldman was saying it's going to 2,000.

20:14.580 --> 20:16.582
They were saying energy's going to $300 a barrel.

20:16.582 --> 20:20.686
I saw a ton of people trying to rent it and gold traded down, let's call it

20:20.686 --> 20:25.257
360, 350 bucks and everyone lost their shirt.

20:25.257 --> 20:27.859
It's interesting because there's two types of investors in the commodity space.

20:27.859 --> 20:31.863
We obviously have a lot of renters right now that traditionally wouldn't

20:31.863 --> 20:32.931
own commodities.

20:32.931 --> 20:33.732
New entrants.

20:33.732 --> 20:38.470
Yes, and I think the same could be said of Bitcoin.

20:38.470 --> 20:41.006
What I would say about the All-In-Ones, we do have some active mandates in

20:41.006 --> 20:43.976
there like  Connor and Chris, the fixed income team.

20:43.976 --> 20:47.613
Our momentum factor will pick up that commodity exposure like it did last year,

20:47.613 --> 20:49.715
or value factor for that matter.

20:49.715 --> 20:54.820
We can get exposure to that indirectly by not being passive.

20:54.820 --> 20:56.855
Let's stay on the same train but switch gears a little bit.

20:56.855 --> 21:00.926
Oil, I don't envy people trying to figure this out

21:00.926 --> 21:03.028
because you not only have to figure out getting it out of the ground but you've

21:03.028 --> 21:07.566
got to figure out geopolitical plus 100 other things.

21:07.566 --> 21:09.601
How do we see it for this year?

21:09.601 --> 21:14.039
Obviously, ton going on. It's up, it's down, it's been moving quite, I'll say,

21:14.039 --> 21:16.041
aggressively. What are your thoughts?

21:16.041 --> 21:18.243
Again, I know we can't predict the future with anything that's happening

21:18.243 --> 21:22.014
geopolitically but when you just look at the fundamentals where are you putting

21:22.014 --> 21:23.181
it this year.

21:23.181 --> 21:26.785
It's going to depend on what happens in the Middle East.

21:26.785 --> 21:29.921
The Venezuelan production that I know the administration's talking about, that

21:29.921 --> 21:34.259
takes time to bring online.

21:34.259 --> 21:38.297
Everything else equal if we have geopolitical issues it

21:38.297 --> 21:41.667
tends to benefit that type of asset, especially if it's within the Middle East.

21:41.667 --> 21:45.737
If any production slows,

21:45.737 --> 21:50.175
especially with the growth that we're seeing of electricity consumption,

21:50.175 --> 21:54.179
you can't have supply come offline in the short term without

21:54.179 --> 21:56.181
having a reaction on the price.

21:56.181 --> 22:02.020
I'm gonna not speculate on what happens there because I have no idea.

22:02.020 --> 22:06.291
I would just say geopolitical tension in oil-centric

22:06.291 --> 22:11.363
type countries is probably better for energy prices.

22:11.363 --> 22:16.301
Longer term, Venezuela has the largest oil reserve in the world,

22:16.301 --> 22:20.405
if you bring that online, I mean, oil prices could

22:20.405 --> 22:24.376
go down and that's a supply-demand argument and we

22:24.376 --> 22:28.780
just have to ... if you can get the supply side right the

22:28.780 --> 22:33.018
demand side is kind of predictable. It's tough to say what happens

22:33.018 --> 22:35.320
in this type of environment.

22:35.320 --> 22:39.358
Let's get off of those assets and move over to everybody's favourite topic,

22:39.358 --> 22:41.960
let's talk about tech. We wouldn't have a show if we didn't talk about tech.

22:41.960 --> 22:45.864
My question for you isn't about tech names, my question for is this,

22:45.864 --> 22:49.868
it's become such a bigger business in the sense that is tech now data

22:49.868 --> 22:52.838
centres, is tech now the production of energy?

22:52.838 --> 22:56.074
Is energy now a play on tech because you can't pick up the newspaper without

22:56.074 --> 23:00.312
reading about ... Florida said they don't want these big mega factories

23:00.312 --> 23:02.214
built there but other states are okay with it.

23:02.214 --> 23:06.084
It's creating a very interesting dynamic on just how are we going to power

23:06.084 --> 23:09.054
these things then what is it they're going to do.

23:09.054 --> 23:13.091
How has all that changed from just picking if Nvidia was gonna be

23:13.091 --> 23:16.962
the future versus Meta versus name your other favourite big tech company.

23:16.962 --> 23:20.966
You and I both heard two PMs talk this morning, just saying who

23:20.966 --> 23:23.702
would have thought that Google was gonna get into the semi space and actually

23:23.702 --> 23:28.073
outperform Nvidia. They released their chips and they

23:28.073 --> 23:29.975
started performing better than Nvidia did.

23:29.975 --> 23:31.676
It's really interesting.

23:31.676 --> 23:34.579
I think this actually goes back to the argument of being active.

23:34.579 --> 23:38.283
Nvidia obviously is a huge market cap.

23:38.283 --> 23:42.687
The concentration in the S&P 500 is quite significant

23:42.687 --> 23:45.590
across the top 7, top 10.

23:45.590 --> 23:47.993
But just hearing our guys talk ...

23:47.993 --> 23:51.963
I didn't know who was gonna win on Google versus Nvidia so

23:51.963 --> 23:54.633
I actually found the fabricator of the chips for both the companies and it was

23:54.633 --> 23:58.770
a rock star home run. Getting that second layer derivative trade is

23:58.770 --> 24:02.441
something that a passive index will never do for us.

24:02.441 --> 24:05.177
I think that's the debate that's happening in tech right now.

24:05.177 --> 24:07.913
Who's the winner in AI? Who knows?

24:07.913 --> 24:10.348
What are the derivative plays that are gonna win no matter who wins?

24:10.348 --> 24:13.585
I think that's where we're finding a lot of value add in our funds right now.

24:13.585 --> 24:17.789
It's going to be really interesting to watch that leadership change

24:17.789 --> 24:21.860
shake out and the concentration of the S&P 500, if

24:21.860 --> 24:25.664
there's an error or change in leadership I think it's quite significant on

24:25.664 --> 24:26.965
total return.

24:26.965 --> 24:31.036
Be amazing to watch. One of the things I know we wanted to talk about was IPOs

24:31.036 --> 24:34.940
have been a little slow. I think I'm understating that.

24:34.940 --> 24:38.310
Could perhaps this year be different?

24:38.310 --> 24:42.380
The elephant in the room is SpaceX which

24:42.380 --> 24:45.784
quite questionably might be one of the world's most valuable IPOs in history.

24:45.784 --> 24:49.754
There was Aramco when Saudi Arabia listed their oil

24:49.754 --> 24:51.656
business.

24:51.656 --> 24:54.926
SpaceX will be number one or two, kind of like in that realm of one of

24:54.926 --> 24:56.695
unicorns.

24:56.695 --> 25:00.732
There's no secrets that they've been shopping the idea of going this

25:00.732 --> 25:04.769
year, rumoured $1 trillion valuations

25:04.769 --> 25:09.341
which is hard to imagine that the company goes public on it.

25:09.341 --> 25:12.010
The market has shifted. If you kind of walk through the old historical

25:12.010 --> 25:15.580
playbook, every new company would want to go public.

25:15.580 --> 25:18.950
It was a liquidity event for the owners.

25:18.950 --> 25:22.988
Historically, we saw tons and tons of IPOs but so much capital has flown

25:22.988 --> 25:27.225
into private equity over the past 10, 20 years that companies

25:27.225 --> 25:31.129
have a lot of ability to stay private for longer.

25:31.129 --> 25:34.733
When the market was soft or there was risk in the market people kind of pulled

25:34.733 --> 25:37.068
back from the IPO issuance.

25:37.068 --> 25:40.138
I think it'd be great to see the IPO market come back because it's historically

25:40.138 --> 25:43.975
low just on average, take out last year, the previous year, compared to prior

25:43.975 --> 25:48.547
decades but that's the one that we're all watching.

25:48.547 --> 25:52.651
Let me ask you a question. It's somewhat of a US-centric question, do

25:52.651 --> 25:56.187
you think that would have knock-on that if you do see everybody going and

25:56.187 --> 25:59.591
people, I'll say get excited again about the IPO market do you see that

25:59.591 --> 26:03.094
translating to the rest of the world of people perhaps saying, okay, perhaps if

26:03.094 --> 26:04.629
we were debating it now's the time.

26:04.629 --> 26:08.300
Yes, you always want to IPO into a healthy market.

26:08.300 --> 26:12.404
That's just corporate governance, to get the maximum

26:12.404 --> 26:15.807
value for your company you wanna see successful IPOs elsewhere.

26:15.807 --> 26:18.810
You wanna see a healthy market. It tends to dry up in bear markets because

26:18.810 --> 26:20.812
there's not capital to be spent.

26:20.812 --> 26:23.848
Their job is to maximize shareholder value so they're gonna do it at the

26:23.848 --> 26:27.285
opportune time. If you get one or two that are big successes, hopefully you see

26:27.285 --> 26:29.588
a domino effect.

26:29.588 --> 26:32.958
It always goes quickly. We only, I think, have about one or two minutes left.

26:32.958 --> 26:36.595
As the head of product what are you excited about for this year?

26:36.595 --> 26:38.697
We've talked a lot about All-in-Ones on this.

26:38.697 --> 26:42.100
What are you most excited about as we sort of head into busy season?

26:42.100 --> 26:45.403
Dave, I saw a shocking number. Last year we did somewhere between 60 and 75%

26:45.403 --> 26:49.574
capture rate in the All-in-One industry on

26:49.574 --> 26:52.544
ETFs, which is a pretty crazy stat.

26:52.544 --> 26:56.147
We are launching Global Opportunities Long/Short.

26:56.147 --> 27:00.151
I'm pretty excited about that in the sense that if we do

27:00.151 --> 27:04.122
see volatility the value of that short sleeve to reduce that volatility

27:04.122 --> 27:08.393
is pretty significant. We have the new fund coming managed by Max Adelson,

27:08.393 --> 27:12.364
Nic Bellemere. We've got Dave Way, we've got Dan Dupont,

27:12.364 --> 27:14.299
we got our Canadian Long/Short.

27:14.299 --> 27:17.535
We're not short of alternatives. I do think that if we are going to have

27:17.535 --> 27:20.739
volatility those will play an important role in the playbook.

27:20.739 --> 27:22.641
We have Darren on American Equity.

27:22.641 --> 27:26.378
We're launching the ETF series of American Equity with our new portfolio

27:26.378 --> 27:30.382
manager Darren Lekkerkerker. He has a great track record on North

27:30.382 --> 27:33.518
American equity and US equity within that fund specifically.

27:33.518 --> 27:36.187
I'm pretty excited for January.

27:36.187 --> 27:40.959
I hope we have a great year and the headline risk calms down a bit.

27:40.959 --> 27:45.563
As all of our partners are used to with us lots to come for 2026.

27:45.563 --> 27:47.832
Andrew, thanks so much, it's always great to chat.

27:47.832 --> 27:51.770
Thanks for watching or listening to the Fidelity Connects

27:51.770 --> 27:55.907
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We'll end today's show with a short disclaimer.

28:25.437 --> 28:29.274
The views and opinions expressed on this podcast are those of the participants,

28:29.274 --> 28:33.211
and do not necessarily reflect those of Fidelity Investments Canada ULC or

28:33.211 --> 28:37.215
its affiliates. This podcast is for informational purposes only, and should not

28:37.215 --> 28:39.751
be construed as investment, tax, or legal advice.

28:39.751 --> 28:42.053
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28:42.053 --> 28:46.391
Or an endorsement, recommendation, or sponsorship of any entity or securities

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cited. Read a fund's prospectus before investing, funds are not guaranteed.

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Their values change frequently, and past performance may not be repeated.

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Fees, expenses, and commissions are all associated with fund investments.

28:58.603 --> 29:00.905
Thanks again. We'll see you next time.