Fidelity Global Investment Grade Bond ETF Series L Trust · NEO:FCIG
Fidelity Global Investment Grade Bond ETF Series L Trust — Fidelity Investments Canada ULC — Investor Presentation (October 2023)
14 slides from Fidelity Global Investment Grade Bond ETF Series L Trust's investor presentation, October 2023
Slide 1: Uncovering investment opportunities with ETFs
Uncovering investment opportunities with ETFs Bobby Barnes Head of Quantitative Index Solutions October 2023 © 2023 FIDELITY INVESTMENTS CANADA ULC 1552581-v20231011 FOR ADVISOR USE ONLY
Slide 2: Quant Index Solutions
Quant Index Solutions QIS MISSION Asset management product view Design and manage Quant Index Solutions proprietary indices covering equity, fixed Dedicated investment team focused on the research and income, digital asset construction of custom indices and multi-asset class structures Enable shareh
Slide 3: Factors constructed through a collaboration of Fidelity's fundamental and quantitative investors
Factors constructed through a collaboration of Fidelity’s fundamental and quantitative investors FUNDAMENTAL QUANTITATIVE FACTORS INVESTORS INVESTORS Constructed with years of fundamental and quantitative experience and insights, with Conduct bottom-up, Conduct research to the objective of providing
Slide 4: The Fidelity Factor™
The Fidelity Factor™ Active in design, passive in execution Active funds Passive funds generally seek to The generally track outperform a Active Fidelity Passive a traditional broad market funds Factor® funds market cap- cap-weighted weighted index index • Tracks the performance of tailor-made index
Slide 5: What is a factor?
What is a factor? Factors are characteristics that can help explain risk and return STYLE FACTORS Help explain risk and return within asset classes Dividend yield Low volatility Quality Value Momentum Size Securities that Lower-risk Financially Securities Positively Smaller, WHAT IT IS pay higher se
Slide 6: Bond indexes are inefficient
Bond indexes are inefficient Characteristics of the ICE BofA Canada Broad Market Index Return of sectors within bond universe 10% weight 75% weight 3.0% 0.6 2.5% 0.5 Annualized return Sharpe ratio 2.0% 0.4 1.5% 0.3 1.0% 0.2 0.5% 0.1 0.0% 0.0 Corp BBB Corp AA Corp A Provincial Federal Return Retun/Vo
Slide 7: Fidelity Systematic Canadian Bond Index
Fidelity Systematic Canadian Bond Index Thoughtful reallocation to sectors yields higher, more consistent returns over time Rolling three-year annualized excess return Rolling three-year return/volatility improvement 1.8% 0.6 1.6% 0.5 1.4% 1.2% 0.4 1.0% 0.3 0.8% 0.2 0.6% 0.4% 0.1 0.2% 0.0 0.0% -0.1
Slide 8: Fidelity Factor ETFs offer a range of options for all styles
Fidelity Factor ETFs offer a range of options for all styles Available in Canada, U.S., U.S. currency neutral, and international Value factor Low volatility factor Momentum factor VALUE CORE GROWTH Dividend factor High quality factor For illustrative purposes only. Not based on actual holdings infor
Slide 9: Three approaches to factor investing
Three approaches to factor investing 1 Strategic exposure 2 Cyclical exposure 3 Risk management © 2023 FIDELITY INVESTMENTS CANADA ULC 1552581-v20231011 9 FOR ADVISOR USE ONLY © 2018 FIDELITY INVESTMENTS CANADA. ADVISOR USE ONLY
Slide 10: The cost of money impacts economic activity
The cost of money impacts economic activity ISM new orders vs. change in ten-year Treasury 90 -3% 80 -2% Chg in ten-year (inverted) 70 -1% 60 ISM 0% 50 1% 40 ISM New Orders 2024? 2% 30 24mth chg in 10yr Treasury (adv 18mths) 20 3% 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 Sour
Slide 11: The consumer is the economy: Savings
The consumer is the economy Keeping an eye on the consumer – Savings Excess savings Excess savings by income cohort $30,000 Bottom 20%: 96% Quintile 2: 96% Quintile 3: 104% cumulative Quintile 4: 100% Top 19%: 113% Top 1%: 128% $25,000 projection 1.5 $20,000 1.4 Cash Relative to Pre-Covid $15,000 1.
Slide 12: The consumer is the economy: Jobs
The consumer is the economy Keeping an eye on the consumer – Jobs Job openings and temp hiring Initial jobless claims 14,000 3300 800 3100 12,000 700 Initial Jobless Claims 2900 10,000 600 Temp employment 2700 Job openings 8,000 2500 500 6,000 2300 400 2100 4,000 300 1900 2,000 Job Openings 200 Temp
Slide 13: Factors and the business cycle
Factors and the business cycle Certain factors have tended to perform well in varying market environments EARLY MID LATE RECESSION CYCLE PHASES acceleration in positive, but growth rate slows growth economic growth moderating growth to stall speed contracts ++ Quality ++ Value ++ Momentum + Momentum
Slide 14: Important notice
Important notice For advisor use only. No recipient is authorized to pass this communication on to any other person whatsoever or reproduce it by any means without the prior written consent of Fidelity. Commissions, trailing commissions, management fees, brokerage fees and expenses may be associated
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