Fidelity is the latest investment manager to release an ethically focused global equity product.
Launching with just $80m of AUM, the fund will utilise a “stringent bottom-up selection process” that is skewed toward companies with the highest ESG ratings.
Matt Jones and Hiten Savani will co-manage the ethical vehicle.
Both have been closely associated with Fidelity’s FIRST strategies, with Jones involved with the franchise from the very beginning and Savani playing a pivotal role in its evolution.
Conversely, the fund will avoid investing in companies which derive a “significant portion of business revenue” from activities which can have negative ESG impacts, such as alcohol manufacturing and distribution, arms, tobacco, pornography and gambling.
It will also have zero exposure to companies that deal in controversial weapons, including chemical and biological weapons.
Although the fund is very stock specific, it is not constrained by company size, sector or geographical allocations.
Savani said of the fund: “Our fully active investment process is designed to leverage the alpha generating potential of Fidelity’s global research platform, while offering investors access to a robust and measurable ESG approach.”
