Fidelity International announced today the launch of the Sustainable Multi Asset Fund range, adding to the investment offerings under the firm’s Sustainable Family of Funds. The new open-ended funds encompass offerings across the risk spectrum, with an initial launch of three funds, including the Fidelity Sustainable Multi Asset Conservative Fund, Fidelity Sustainable Multi Asset Balanced Fund and Fidelity Sustainable Multi Asset Growth Fund.
Fidelity’s Sustainable Family Fund range is built on the firm’s core approach to sustainable investing, with an enhanced sustainable investing framework based on three pillars in order to deliver outcomes with a specific focus on sustainability. The pillars include ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. More integration, with funds taking either a best-in-class or sustainable thematic approach using Fidelity’s proprietary Sustainability Ratings; Corporate engagement, through the firm’s enhanced engagement framework, particularly for low-rated holdings to influence change and agree on milestones and timelines within a proactive engagement plan, and; Exclusions, such as United Nations Global Compact Violators, companies above a threshold revenue level relating to the distribution of tobacco, weapons and thermal coal, or companies involved in the production or distribution of cluster munitions and landmines.
For the new multi-asset range, lower-risk funds will have a greater exposure to defensive assets such as fixed income, and moving up the risk spectrum, each fund will take on a greater allocation towards growth assets such as global and emerging market equities. For example, the Growth fund will allocate 60-80% to equities, compared to 15-35% for the Conservative fund and 40-60% for the Balanced.
John Clougherty, Head of UK Wholesale at Fidelity International said:
“At Fidelity, ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. More integration is an integral part of our investment process across all strategies as we believe that sustainability factors are material to long-term investment outcomes.
“With increased regulation and growing client demand, we recognise the importance to the UK adviser market of building sustainability considerations into suitability assessments and their fund section process. That’s why for those clients who require an enhanced ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. More screening, we are pleased to offer a growing selection of funds in our Sustainable Family of Funds spanning our equity, fixed income, ETF and now multi asset franchises, providing a wide ranging but universal and robust approach to sustainable investing.”
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