Mutual fund giant Fidelity Investments is having a tough time retaining market share in Canada, the Ottawa Citizen reports. It has dropped from the fourth-largest fund company in Canada in 1999 to the seventh-largest today, when Canadian mutual fund assets have almost doubled in the last seven years to $500 billion.

Analysts agree that Fidelity has not been able to curb investor defection mainly because its funds offer fewer dividend-paying and fixed income funds, which Canadian investors prefer. The company's funds also charge fees as much as 55% higher than other funds offered by banks, according to Morningstar data.

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