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
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)
Premium Class (FPNSX)
Institutional Class (FITLX)
|Fidelity International Sustainability Index Fund|
Investor Class (FNIYX)
Premium Class (FNIRX)
Institutional Class (FNIDX)
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.
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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
© 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