Fidelity and Brookfield ink deal to establish new real estate investments fund
Fidelity Investments Canada ULC (Fidelity) announced that it has entered into an agreement with Brookfield Asset Management (Brookfield), whereby Brookfield will invest in, and manage a newly formed portfolio of high quality Canadian real estate assets on behalf of Fidelity.
Fidelity plans to allocate this portfolio to a number of Fidelity Private Investment Pools and is also actively exploring other opportunities to utilize this portfolio. Strong active management combined with the long-term benefits of private real estate can further enhance diversification in investors' portfolios.
Since its founding in Canada in 1987, Fidelity has constantly expanded its product lineup to meet the changing needs of clients by delivering them innovative, actively managed investment strategies supported by its global strength and scale.
In recent years, Fidelity has successfully introduced alternative investment solutions to offer Canadians even more choice to help them further diversify their portfolios and to provide a strong return potential that is less correlated to traditional stocks and bonds.
Fidelity's agreement with Brookfield will enable Fidelity to continue enhancing existing strategies, build out its alternative investment suite and broaden its overall investment capabilities. Earlier this week, amendments were filed with the regulators to allow certain strategies under the Fidelity Private Investment Program to invest in private real estate.
Private real estate assets under management have grown significantly over the last two decades, as investor demand continues to increase for alternative sources of income, capital appreciation and diversification. As this trend is expected to continue and real estate markets experience constant change against the backdrop of rising rates and an emerging hybrid economy, Fidelity intends to bring to market a real estate strategy, leveraging Brookfield.