The strategies seek to address investors’ desire for impact and their need for strong risk-adjusted returns
“We're pleased to launch these investment solutions that champion change by combining investors' desire to effect positive change with the potential to generate strong risk-adjusted returns,” said Rob Strickland, president of Fidelity Investments Canada.
The Fidelity Women’s Leadership Fund is a core US equity strategy that focuses on companies that prioritize and advance women’s leadership and development. Sub-advised by FMR Co. and leveraging Fidelity’s deep fundamental equity research expertise, it looks for companies that display gender diversity as well as the potential to achieve strong risk-adjusted returns.
The fund will be managed by Nicole Connolly, portfolio manager and head of ESG Investing. Connolly explores a wide universe of opportunities in search of potentially successful companies with at least one of the following characteristics:
- A woman as a member of the senior management team, including such roles as CEO, President, Chairman or CFO;
- A board of directors composed of at least 33% women or at least three female directors; and
- Gender diversity initiatives and policies, designed to attract, retain and promote women
Meanwhile, the NEO-listed Fidelity Sustainable World ETF follows a global multi-factor equity mandate employed by Geode Capital Management, a global systematic investment manager with over US$464 billion in AUM as at March 31. Acting as the fund’s sub-advisor, Geode uses a best-in-class screening approach to select companies with attractive fundamentals as well as favourable ESG characteristics.
The multi-factor model underlying the Sustainable World ETF evaluates a universe of stocks on over 40 factor characteristics across a number of categories. These include, but are not limited to:
- Favourable valuation;
- Positive momentum;
- High quality profile;
- Strong growth potential; and
- Information flow assymetries
Aside from putting more emphasis on stocks with the strongest fundamental characteristics, the model seeks to construct a portfolio with a more favourable ESG profile than the broader market.
To offer advisors and investors more choice, Fidelity has also launched Fidelity Sustainable World ETF Fund, a mutual fund version of the ETF.
The firm also announced the introduction of systematic currency-hedged versions for six US equity funds:
- Fidelity Women's Leadership Systematic Currency Hedged Fund
- Fidelity Small Cap America Systematic Currency Hedged Fund
- Fidelity American Equity Systematic Currency Hedged Fund
- Fidelity U.S. Dividend Systematic Currency Hedged Fund
- Fidelity U.S. Focused Stock Systematic Currency Hedged Fund
- Fidelity Insights Systematic Currency Hedged Fund