Key Morningstar Metrics for Fidelity Canadian Disciplined Equity Class
- : NeutralMorningstar Medalist Rating
- : AverageProcess Pillar
- : Above AveragePeople Pillar
- : Above AverageParent Pillar
Fidelity Canadian Disciplined Equity, including IG FI Canadian Equity, draws on the expertise of an experienced portfolio manager and a well-resourced analyst team who implement a standard fundamental research process. The strategy earns an initial Above Average People and Average Process Pillar ratings.
Fidelity Canada Investment Management’s Chief Investment Officer Andrew Marchese is the lead manager here. He draws on an experienced analyst team with broad sector knowledge. Marchese’s long tenure at the firm (20+ years) and direct involvement in the research process make him well-positioned to stress-test ideas and help analysts differentiate between fundamental signals and short-term noise.
The investment approach emphasizes security selection within tight sector constraints, aiming to deliver consistent returns while limiting sector risk. Sector exposures may deviate by up to 3 percentage points from the S&P/TSX Capped Composite prospectus benchmark. While this plan has resulted in lower tracking error than most peers, it can restrict the manager’s ability to outperform, particularly in market environments where macro trends—rather than company fundamentals—drive share price gains.
Marchese maintains a diversified portfolio of 50–80 holdings, favoring a holding period of roughly three years for investment ideas. The manager has lightly overweighted consumer-facing sectors and moderately underweighted energy and utilities. The strategy’s non-Canadian holdings comprise less than 10% of the portfolio, and the manager buys them when analysts identify specific high-conviction opportunities outside of Canada.
Over Marchese’s tenure from April 2009 through July 2025, the fund’s F share class gained 11.0% annualized, outpacing the Morningstar Canada category index’s gain of 10.6% and the Canadian equity peer average of 9.5%, driven by strong stock selection across several sectors. Recent performance has disappointed: Over the past year through July 2025, the fund lagged both the index and peers. Several missteps—such as an overweight holding in Rogers Communications and underexposure to energy stocks—detracted from returns.
While the strategy’s fundamental approach has few distinctive features, its experienced leadership and analyst team make it a credible option.
Fidelity Canadian Disciplined Equity Class: Performance Highlights
Over Andrew Marchese’s long tenure, the strategy has delivered modest outperformance of the category index.
Since Marchese’s appointment in April 2009 through July 2025, the F share class gained 11.0% annualized, outpacing the Morningstar Canada category index’s gain of 10.6% and the Canadian equity peer average of 9.5%. Strong security selection in the financial services, basic materials, and consumer cyclical sectors was the key driver of long-term results, while selection in the industrial and energy sectors detracted marginally.
Relative returns plunged over the past year through July 2025. The strategy’s 15.8% gain lagged the category index return of 22.5% and the average peer’s 17.9% gain. Three key exposures were at fault. First, tariff uncertainty weighed on economically sensitive companies; the manager’s positions in logistics firms TFI International and Saia declined by 43% and 28%, respectively, over the past year. The manager’s underweight in the energy sector for much of the period also proved a headwind. Within energy, the portfolio favored more defensive royalty-based companies and had less exposure to pipelines and integrated oil companies, which outperformed the fund’s holdings. Finally, the portfolio’s overweight position in Rogers Communications hurt, declining by 10% over the year through July 2025. The manager noted that the team’s investment thesis for the stock was flawed; another analyst has taken over coverage of the company and sector.
