Fidelity debuts climate leadership funds

Suite of climate-focused investment products positioned to benefit from global shift to low-carbon economy

Fidelity debuts climate leadership funds

As conversations around environmental action intensify across the world, Fidelity Investments Canada has unveiled a new suite of investment products for climate-conscious Canadians.

The Fidelity Climate Leadership Funds are designed to benefit from the global transition to a low-carbon economy, which is seen to potentially drive growth for decades to come.

“As climate related issues reshape the global financial landscape by creating both long-term risks and opportunities, financial advisors and investors are increasingly asking for actively-managed investment vehicles that aim to capitalize on this secular trend,” Kelly Creelman, senior vice president, Products said in a statement.

Aside from leveraging Fidelity’s active investment approach and a deep global fundamental research network, the fund’s portfolio managers get support from a dedicated sustainable investing team as well as Fidelity’s proprietary sustainability ratings framework.

Investors in the new funds stand to benefit from the long-term investment opportunity in decarbonization, a long-running secular trend expected to gain trillions of dollars in support from both governments and corporations. Compared to traditional strategies, the funds are also designed to reduce the additional investment risks from increased regulation, disruptive technologies, and stranded assets arising from the decarbonization trend.

Beyond that, the new funds give investors and asset managers a way to play a role in propelling long-term value creation and positive change through corporate engagement, encouraging companies to reduce carbon emissions and better manage climate-related risks.

The funds in the new suite include:

  • Fidelity Climate Leadership Fund – managed by portfolio manager Hugo Lavallée, a best-in-class global equity strategy that seeks long-term capital growth by investing in companies believed to be climate leaders, climate solutions providers, or climate reformers;
  • Fidelity Climate Leadership Bond Fund – with portfolio managers Kris Atkinson and Sajiv Vaid, the fund is a global corporate bond strategy that focuses primarily in the investment-grade space. Designed to achieve significantly lower current and future carbon emissions relative to its benchmark, the diversified fund aims to get active returns relative to the broad global corporate bond market while maintaining similar risk characteristics; and
  • Fidelity Climate Leadership Balanced Fund – a 60-40 blend of its two sibling funds, the globally diversified balanced solution is designed to reduce the risks and benefit from opportunities emerging from the global transition to a low-carbon economy.

“A focus on the global transition to a low carbon economy has the potential to offer attractive returns, and we are pleased to expand choice in our product line up by offering Fidelity Climate Leadership Funds,” Creelman said.


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