BOSTON--(BUSINESS WIRE)--Fidelity Investments®, one of the industry’s largest, most experienced providers of low-cost active and index investment products, today announced it has launched two sustainability-focused index funds -- Fidelity U.S. Sustainability Index Fund and Fidelity International Sustainability Index Fund -- to provide investors with additional choice for their environmental, social and governance (ESG) investments.
Fidelity’s two new sustainability index funds offer multiple share classes at market-leading prices and are available directly to individual investors as well as through third-party financial advisors and workplace retirement plans. The new funds expand Fidelity’s ESG investment product offering, which currently includes an actively managed mutual fund -- Fidelity Select Environment & Alternative Energy Portfolio -- and Fidelity’s FundsNetwork program, which provides investors access to more than 100 ESG funds.
“Launching the ESG funds reaffirms Fidelity’s commitment to providing our 26 million customers access to a diverse set of investment vehicles to meet their distinct financial goals,” said Colby Penzone, senior vice president for Fidelity’s Investment Product Group. “We understand that some investors may choose to advance specific causes, based upon their own principles. As a result, we expect the ESG factors used in the new funds to help many investors better align their personal principles with their investment objectives.”
Of the more than $197 billion invested in ESG mutual funds and ETFs1 in the United States, approximately $17 billion are under administration on Fidelity’s platform. As 85% of millennials consider social, political, or environmental impact important in investing, the market is expected to continue to grow in the coming years.2
Fidelity’s Sustainability Index Funds Provide Access to U.S. and
International Markets
Each fund will attempt to replicate the
performance of its respective index, before expenses, by normally
investing at least 80% of its assets in securities included in the index.
- Fidelity U.S. Sustainability Index Fund will seek to provide investment results that correspond to the total return of the MSCI USA ESG Index. The MSCI USA ESG Index is a capitalization-weighted index that provides exposure to companies with high ESG performance relative to their sector peers, as rated by MSCI ESG Research. MSCI USA ESG consists of large- and mid-cap companies in the U.S. market.
- Fidelity International Sustainability Index Fund will seek to provide investment results that correspond to the total return of the MSCI ACWI (All Country World Index) ex USA ESG Index. The MSCI ACWI ex USA ESG Index is a capitalization-weighted index that provides exposure to companies with high ESG performance relative to their sector peers, as rated by MSCI ESG research. MSCI ACWI ex USA ESG consists of large- and mid-cap companies across 22 developed markets and 23 emerging markets countries.
The funds will be available in three distinct share classes: Investor Class, Premium Class and Institutional Class.
| New Fund/Share Class (ticker) |
Total Net Expenses3 |
||||
| Fidelity U.S. Sustainability Index Fund | |||||
|
Investor Class (FENSX) |
0.21 | ||||
|
Premium Class (FPNSX) |
0.14 | ||||
|
Institutional Class (FITLX) |
0.11 | ||||
| Fidelity International Sustainability Index Fund | |||||
|
Investor Class (FNIYX) |
0.30 | ||||
|
Premium Class (FNIRX) |
0.25 | ||||
|
Institutional Class (FNIDX) |
0.20 | ||||
Fidelity Reinforces Commitment to Sustainable Investing
In
addition to launching the Fidelity U.S. Sustainability Index Fund and
Fidelity International Sustainability Index Fund, Fidelity recently
became a signatory of the United Nations-supported Principles for
Responsible Investment (PRI).
As a long term investor, Fidelity has historically managed its funds and accounts with the overriding goal of seeking to provide the greatest possible return to shareholders and clients consistent with the investment guidelines and objectives of each fund and account. Part of Fidelity’s investment process for deciding whether to buy, or sell, a company’s securities takes into consideration corporate governance practices, including ESG issues. Signing on to the PRI is consistent with Fidelity’s long-standing approach to ESG matters.
In addition to signing the PRI, Fidelity also has created an ESG Office in its Asset Management division to further the integration of ESG considerations into investing practices.
Fidelity Offers Educational Resources on Sustainable Investing
Investors
can learn more about socially responsible investing through a new Fidelity
Viewpoint and Fidelity’s
Learning Center. Additionally, investors can view stock-level
ESG research or use the mutual
fund and ETF
screening tools on Fidelity.com to view funds that are classified by
Morningstar as “Socially Responsible.”
About Fidelity Investments
Fidelity’s mission is to inspire
better futures and deliver better outcomes for the customers and
businesses we serve. With assets under administration of $6.0 trillion,
including managed assets of $2.2 trillion as of March 31, 2017, we focus
on meeting the unique needs of a diverse set of customers: helping more
than 26 million people invest their own life savings, 23,000 businesses
manage employee benefit programs, as well as providing more than 12,500
financial advisory firms with investment and technology solutions to
invest their own clients’ money. Privately held for 70 years, Fidelity
employs 45,000 associates who are focused on the long-term success of
our customers. For more information about Fidelity Investments, visit https://www.fidelity.com/about.
Before investing, consider the fund's investment objectives, risks, charges and expenses. Please visit www.fidelity.com or advisor.fidelity.com for a prospectus or if available, a summary prospectus, containing this information.
Past performance is no guarantee of future results.
Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money.
Stock markets, especially foreign markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks, all of which are magnified in emerging markets.
Fidelity, Fidelity Investments, Fidelity Investments and the pyramid logo, are registered service marks of FMR LLC.
The third party trademarks appearing herein are the property of their respective owners.
Fidelity Brokerage Services LLC, Member NYSE, SIPC
900 Salem
Street, Smithfield, RI 02917
National Financial Services LLC, Member NYSE, SIPC,
200 Seaport
Boulevard, Boston, MA 02110
Fidelity Investments Institutional Services Company, Inc.,
500
Salem Street, Smithfield, RI 02917
802414.1.0
© 2017 FMR LLC. All rights reserved.
1 Source: Morningstar and SimFund (as of 6.30.16).
2
Source: 2015 U.S. Trust Insights on Wealth and Worth
3
as of 5.15.17
