The Pyramis Equity group employs both fundamental and quantitative strategies, utilizing varying degrees of active management. All portfolios employ processes focused on research and risk management. This process is complemented by a team-based structure to ensure depth of management and continuity in all of our portfolios.
In addition to collaborating with the broader Fidelity global research platform, our institutionally-focused Pyramis team employs:
Managing risk is a critical component of our process. Our strategies span a full range of risk utilization and active management:
Many are diversified with more than 100 holdings, although specific strategies may utilize less
Are largely managed sector, currency and region neutral to their benchmarks
Seek to build minimum levels of cash
Leverage our proprietary quantitative risk modeling
Generate returns through bottom up stock-selection
We invest significant resources to seek to ensure that the fundamental and quantitative research our team uses to build and manage client portfolios is second to none. Whether it involves the development of proprietary tools or the hiring of personnel, we are continuously looking for opportunities to improve our portfolio management efficiency, effectiveness and performance.
Equity Overview
This overview discusses the Pyramis Equity Platform, our capabilities, investment approach, research resources, and risk management infrastructure.
The Canadian Core equity portfolio seeks to provide excess return relative to the S&P/TSX Capped Composite Index over a full market cycle by investing in a diversified portfolio of Canadian equities while maintaining similar sector weights relative to the benchmark.
The Canadian Systematic equity portfolio seeks to provide excess return relative to the S&P/TSX Capped Composite Index over a full market cycle by investing in a diversified portfolio of Canadian equities while maintaining similar super sectors weights relative to the benchmark.
For more information on these products, please contact pyramiscanada@fmr.com.
Core
The Large Cap Core 130/30 seeks to provide long-term total return in excess of the S&P 500 Index by investing in a diversified portfolio of US equities.
The Large Cap Core portfolio seeks to provide 3.0% annualized excess return relative to the S&P500 Index over a full market cycle by investing in a diversified portfolio of US equities. The portfolio is constructed to ensure that active return is generated through stock selection.
The objective is to seek to outperform the S&P 500 Index while managing market, industry and style bets.
The objective is to seek to provide excess return over the S&P 500 Index while maintaining similar style characteristics and sector weights relative to the benchmark.
The Small/Mid Cap Core portfolio seeks to provide 3.0% annualized excess return relative to the Russell 2500™ Index over a full market cycle by investing in a diversified portfolio of US equities. The portfolio is constructed to ensure that active return is generated through stock selection.
The objective is to seek to provide excess return over the Russell 2000 Index while maintaining similar characteristics and sector weights relative to the benchmark.
Value
The Large Cap Value strategy seeks long-term outperformance over the Russell 1000® Value Index by focusing on stocks that are trading at a large discount to intrinsic value.
The objective is to seek to provide excess return over the Russell 2500™ Value Index while maintaining similar characteristics and sector weights relative to the benchmark.
Growth
The objective is to seek to provide excess return over a market cycle relative to the Russell 1000 Growth Index through the management of equities of medium- to large-capitalization companies having strong long-term earnings growth prospects. The strategy is a fifty stock portfolio that represents Pyramis' portfolio management team's best investment ideas based on an intrinsic value approach to investing. By focusing on long-term business fundamentals, the team identifies companies whose free cash flow growth is not fully reflected in the price of their stocks. The Pyramis team then constructs a portfolio that has similar characteristics to the benchmark in order to maintain style consistency and risk parameters.
The objective is to seek to provide excess return over a market cycle relative to the Russell 1000® Growth Index or a suitable large-cap growth index, through the management of equities of medium- to large-capitalization companies having strong long-term earnings growth prospects.
The objective is to seek to provide excess return over a market cycle relative to the Russell 2500™ Growth Index or a suitable small/mid-cap growth index, through the management of equities of small- to medium-capitalization companies having strong long-term earnings growth prospects.
For more information on these products, please contact pyramiscanada@fmr.com.
Core
The objective is to seek to provide excess returns relative to the MSCI EAFE® (Net) Index while maintaining similar fundamental characteristics.
Adds an emerging market component to the Select International product and seeks to outperform the MSCI All Country World ex-US Index.
The objective is to seek to provide excess returns relative to the MSCI World Index while maintaining similar fundamental characteristics.
Adds an emerging market component to the Select Global product and seeks to outperform the MSCI All Country World Index.
The objective is to seek to provide excess returns relative to the MSCI Europe Index while maintaining similar fundamental characteristics.
The objective is to seek to provide excess returns relative to the MSCI Japan Index while maintaining similar fundamental characteristics.
The objective is to seek to provide excess returns relative to the MSCI UK Index while maintaining similar fundamental characteristics.
The objective is to seek to provide excess returns relative to the MSCI Pacific Basin Index while maintaining similar fundamental characteristics.
Small Cap
The objective is to seek to provide excess returns relative to an international small-cap index through active stock selection, while matching geographic region weights of the index.
A more concentrated application of the Select International Small Cap approach with higher targeted excess return and higher allowances for risk.
Seeks to provide excess returns relative to a global index of small cap stocks through active stock selection while matching geographic region weights of the index.
Emerging Markets
An extension of the Select product platform which seeks to outperform the MSCI Emerging Markets Index via security selection based on Fidelity's emerging markets research.
Seeks to outperform the MSCI Emerging Markets Index via security selection based on Fidelity's emerging markets research. Consideration is then given to the resulting country and sector allocations.
Value
Purchase stocks that are inexpensively priced in relation to their earnings power and cash generation capability. The strategy seeks to provide 3-4% excess return annually relative to the MSCI EAFE index over a 3 to 5 year period.
Growth
Objective is to provide long-term capital growth via a diversified portfolio of large-, medium-, and small-cap companies in Europe, Japan, and the Pacific Basin. The International Growth strategy seeks to provide excess returns relative to the MSCI EAFE Index over a full market cycle
For more information on these products, please contact pyramiscanada@fmr.com.
Fidelity Investments Canada ULC
483 Bay Street, Suite 300
Toronto, Ontario
M5G 2N7
1 (800) 817-5448
pyramiscanada@fmr.com
Media Relations
Chris Pepper
Director, Corporate Affairs
(416) 307-5388
Pyramis Global Pension "Pulse" Poll
January 2010
Leading global pension plans believe future growth to come from active equity management
Emerging markets and your pension plan
July 2009
Portfolio manager Ravi Mantha discusses the opportunity for adding emerging markets exposure to your pension plan.
Emerging Markets - Making the most of the opportunity that can't be ignored
Second Quarter 2009
By Ravi Mantha, International Equity Portfolio Manager, Pyramis Global Advisors
