Alternative Investments/ESG: Fidelity Expands ESG Funds Lineup With Mutual Funds, ETFs, And A Bond Fund

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The new funds focus on the environment, climate change, gender diversity & sustainability.

Fidelity Investments announced Wednesday the launch of five new actively managed Environmental, Social, and Governance (ESG) funds. These comprise two mutual funds, two ETFs, and one bond fund. (BusinessWire)

Asset Class EQUITY BOND
Name Fidelity Climate Action Fund (FCAEX) Fidelity Sustainability U.S. Equity Fund (FSEBX) Fidelity Sustainability U.S. Equity ETF (FSST)* Fidelity Women’s Leadership ETF (FDWM)* Fidelity Environmental Bond Fund (FFEBX)
Type Mutual fund Mutual fund ETF ETF Mutual fund
ESG focus Climate change Sustainability Sustainability Gender Diversity Environment
*Actively managed

The new funds.

  • The Climate Action Fund will normally invest at least 80% of the fund’s assets in equity securities of climate-aware companies. Climate-aware companies are those that FMR believes are working to address climate change or its impacts either indirectly through their corporate strategy, or directly through the technology, services, or products they provide.
  • The Environmental Bond Fund will invest at least 80% of the fund’s assets in environmental debt securities of all types and repurchase agreements for those securities. The fund will normally invest the fund’s assets primarily in investment-grade securities. Environmental debt securities include debt securities of issuers that develop or provide products or services that seek to provide environmental solutions and/or support efforts to reduce their own environmental footprint and debt securities that support environmental projects.
  • The Fidelity Sustainability U.S. Equity Fund will normally invest at least 80% of the fund’s assets in equity securities of U.S. companies that FMR believes have proven or improving sustainability practices, based on an evaluation of such companies’ individual ESG profile.
  • The Sustainability U.S. Equity ETF normally invests at least 80% of its assets in equity securities of U.S. companies that the Adviser believes have proven or improving sustainability practices based on an evaluation of such companies’ individual ESG profile.
  • The Women’s Leadership ETF normally invests at least 80% of its assets in equity securities of companies that prioritize and advance women’s leadership and development. Such companies include those that, at the time of initial purchase, (i) include a woman as a member of the senior management team, (ii) are governed by a board for which women represent at least one-third of all directors, or (iii) in the Adviser’s opinion, have adopted policies designed to attract, retain and promote women.

Aligning financial and personal goals

“Investors are increasingly interested in aligning their values and priorities with their investment decisions. Fidelity’s new ESG mutual funds and ETFs offer these investors new ways to align their financial and personal goals,” said Pam Holding, Co-Head of Equity and Head of Sustainable Investing. “Fidelity will continue to expand our sustainable investing solutions and resources to help our customers connect their financial goals to positive outcomes in the broader world.”

Related Story:  Fidelity Launches ETFs For Sustainable Corporate Bonds                                                 

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