Fidelity Investments' Canadian unit launched a new mutual fund that invests in companies that are still run by their founders. The Boston-based fund company’s Canadian arm announced in a press release that portfolio manager Daniel Kelley will manage the Fidelity Founders Class fund, which will seek investments around the globe and across market capitalizations. Previously, Kelley managed the U.S.-based Fidelity Large Cap Growth Fund, Fidelity Advisor Strategic Growth Fund, Fidelity VIP Growth Stock Portfolio and Fidelity Select Construction and Housing Portfolio.
According to Fidelity, a founder-led company is one in which the founder is still in a top-level role as chief executive, president, chairman or has an influential ownership stake in the company. Some of the well-known founder-led companies include Amazon.com, Inc. (AMZN), Facebook, Inc. (FB) and Oracle Corporation (ORCL). It's not clear what companies the fund will invest in.
[Ally Invest offers powerful charting tools and $4.95 trades. Read Investopedia's Ally Invest review to learn more about this low-cost broker.]
"Founders are innovative, customer-obsessed and relentlessly committed to driving their business forward and to achieving their vision. These traits often define how entrepreneurs build successful companies that stand the test of time," said Rob Strickland, president of Fidelity Investments Canada, in announcing the new mutual fund. "We are very pleased to launch this truly unique fund in the Canadian marketplace, which will harness the entrepreneurial spirit of founders and seek to deliver long-term value for investors." According to Fidelity, the focus on companies that are still led by their founders is unique in the Canadian mutual fund market and will give investors access to all sizes of companies, operating around the world and including private offerings. The fund is currency neutral, noted Fidelity.
Fidelity has been increasing its offerings in Canada for some months now. Back in November, for example, it announced the launch of the Fidelity Global Innovators Class. That fund, which is being managed by Mark Schmehl, a portfolio manager at Fidelity Investments, is focused on investing in companies that are innovating and disrupting markets all over the world. The fund isn't limited to companies with a specific market cap, aiming to invest in transformation companies regardless of their size. "We live in a time of accelerating change. Disruptive innovations, such as artificial intelligence, blockchain, and advances in genomics, are transforming the global economy and fundamentally changing the investment landscape," said Strickland at the time.