Fidelity Investments Canada ULC is expanding its offerings with the launch of a new private real estate market portfolio.
The company has partnered with Brookfield Asset Management for the new venture, with the latter investing in and managing a portfolio of "high quality" Canadian real estate assets on behalf of Fidelity.
Fidelity will allocate the portfolio to a number of its private investment pools, and will continue to explore other opportunities for its utilization. An initial investment of $150K is required for Fidelity's private investment programs.
The new portfolio will enable individual Canadians to benefit from investing in private real estate, an asset class that is typically held by institutional investors, such as REITs.
"Fidelity has a long history of harnessing our global resources and augmenting these with external expertise where it makes sense to bring innovative, actively managed strategies for clients," said Andrew Wells, President and Head of Fidelity Canada.
"Brookfield is a respected global organization with an impressive track record in private real estate, and we are pleased to work collaboratively with them to add another tool in our toolbox, as we plan to expand our offerings and build a new private real estate market portfolio."
Fidelity's foray into real estate is the company's latest alternative investment solution, adding to an array of offerings it has been growing in recent years as it seeks to help Canadians diversify their portfolios and provide strong returns that are less correlated to traditional stocks and bonds.
"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," Fidelity said in a release. "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."
Fidelity has $202B in assets under management from its clients, including individuals, financial advisors, and pension plans.
Brookfield Asset Management has more than $825B of assets under management across renewable power, infrastructure, private equity, credit, and real estate. The latter accounts for $270B in assets under management, which includes housing, office, and retail.
