Fidelity currency neutral solutions

Protecting portfolios against adverse currency movements is an important part of investing. Currency neutral funds can help mitigate the impact of changes in exchange rates for investors interested in accessing foreign markets.

Three reasons you may want to protect against an appreciating Canadian dollar or falling foreign currencies:

  1. The Canadian dollar has a history of volatility against the U.S. dollar.

  2. Foreign currency volatility can have a significant negative impact on short-term portfolio returns.

  3. Successfully predicting currency movements is nearly impossible to do well over the long term.

Fidelity offers an extensive lineup of currency neutral solutions.

Equity funds

Multi-asset class funds

Fixed-income funds

Private Investment Pools

A fund’s volatility is determined using a statistical measure called “standard deviation.” Standard deviation measures the amount of variability of returns that has historically occurred relative to the average return. The higher the standard deviation of a fund, the greater the range of returns it has experienced in the past. Other types of risk, both measurable and non-measurable, exist. In addition, just as historical performance may not be indicative of future returns, a fund’s historical volatility may not be indicative of its future volatility.

Currency neutral funds use derivatives to mitigate the funds’ exposure to changes in exchange rates between developed market currencies (or U.S. currency) and the Canadian dollar. The investment approach used by the funds (or pools), while effective in reducing exchange rate risk, will not completely eliminate the impact of currency fluctuations. The funds’ (or pools’) returns will differ from the local currency returns of their underlying funds.

Read a fund’s or pool’s prospectus or offering memorandum and speak to an advisor before investing. Read our privacy policy. By using or logging in to this website, you consent to the use of cookies as described in our privacy policy.

This site is for persons in Canada only. Mutual funds and ETFs sponsored by Fidelity Investments Canada ULC are only qualified for sale in the provinces and territories of Canada.