Fidelity International expands fund range with Article 9 strategies

Fidelity’s Sustainable range of funds totals 59 strategies and $36.64bn

Fidelity has launched two active Article 9 funds that aim to achieve capital growth over the long term by investing in sustainable investments.

The Fidelity Funds Sustainable Global Equity Fund is managed by Cornelia Furse as lead portfolio manager, supported by Matt Egerton as assistant portfolio manager.

The Fidelity Funds Sustainable Asian Focus Fund is managed by Mohit Mandhana.

Fidelity’s Sustainable range of funds is a cross-asset class fund range with a focused ESG framework. Its investment approach is underpinned by three pillars centred around engagement, exclusion, and Fidelity’s proprietary research. 

The proprietary dataset assesses an issuer’s positive contribution to the targets and indicators of the UN Sustainable Development Goals.

Jenn-Hui Tan (pictured), chief sustainability officer at Fidelity International, said: “From this foundation, we have been able to develop a series of fund solutions for clients wishing to align their investments with the transition to a sustainable economy.”

In addition, four of Fidelity’s sustainable range of funds have been reclassified from SFDR Article 8 to Article 9. 

These strategies have been adapted to fit with Fidelity’s Article 9 framework. The portfolio management team for these reclassified funds remains unchanged. These are:

  • Fidelity Funds – Sustainable Biodiversity fund
  • Fidelity Funds – Sustainable Climate Solutions fund
  • Fidelity Funds – Sustainable Eurozone Equity fund
  • Fidelity Funds – Sustainable US Equity fund

Fidelity’s fund range now includes six active funds and two ETFs under Article 9 of SFDR; the Fidelity Sustainable Global Corporate Bond Paris-Aligned Multifactor UCITS ETF and Fidelity Sustainable Global High Yield Bond Paris-Aligned Multifactor UCITS ETF.

The funds are part of Fidelity’s wider Sustainable Family range of funds, totalling 59 strategies and representing $36.64bn.

Article 9 funds require 100% of fund investments, net of cash and hedging instruments, to be invested in ‘sustainable investments’. 

For an issuer to meet Fidelity’s ‘sustainable investment’ definition, it must have at least 50% of its revenues generated from activities contributing to an environmental or social objective, measured by the EU Taxonomy, by Fidelity’s proprietary SDG tool or through a robust strategy to decarbonise towards net zero. 

In addition, as specified by SFDR, ‘sustainable investments’ are required to do no significant harm and meet minimum safeguards and have good governance practices.

Christophe Gloser, head of sales for Continental Europe at Fidelity International added: “Sustainability is one of the biggest and most disruptive megatrends that the sector is facing and one that is impacting our investment decision process. 

“We are committed to providing the best solutions for our clients which is why we strive to further develop relevant products for our clients in the long-term.”