Investment management firm Fidelity announced today the launch of four new ESG funds, expanding its suite of sustainable investment offerings with products targeting issuers with strong sustainability characteristics across international and emerging markets equities, high yield debt and multi-asset asset classes.
The new funds include the Fidelity Sustainable International Equity Fund (FSYRX), Fidelity Sustainable Emerging Markets Equity Fund (FSYJX), Fidelity Sustainable Multi-Asset Fund (FYMRX), and Fidelity Sustainable High Yield ETF (FSYD). Each of the funds will focus on investments in issuers with proven or improving sustainability practices, with FSYRX, FSYJX and FSYD investing in developed market equities, emerging markets equities and high yield debt securities, respectively, while the multi-asset fund, designed for investors seeking a diversified fund with an emphasis on equities and long-term growth, will invest in Fidelity’s actively managed and index sustainable funds.
In order to evaluate company or issuer sustainable business practices, each of the new funds will use Fidelity’s proprietary ESG ratings framework, in addition to third party ESG ratings. Fidelity’s ESG ratings framework, launched in 2020, aim to determine both current conditions and future potential. The framework utilizes analysis and discussion among the firm’s ESG and fundamental equity and fixed income analysts to develop two distinct ratings, including a quantitative rating based on historical and current data, and a forward-looking qualitative assessment of an issuer’s sustainability outlook.
With the launch of the new funds, Fidelity now offers 15 ESG-focused mutual funds and ETFs. The sustainable investing suite consists of funds that target specific ESG themes, including climate action, alternative energy, water, and women’s leadership, as well as broader sustainable funds that encompass multiple ESG themes.
Pam Holding, Co-Head of Equity and Head of Sustainable Investing at Fidelity Investments, said:
“Fidelity’s ESG ratings build on our legacy of active management and quantitative capabilities, leveraging our global experience in corporate engagement and fundamental analysis. The integration of our proprietary ESG ratings into these four new products will offer our customers building block solutions to help connect their financial goals to positive themes in the broader world.”