BOSTON--(BUSINESS WIRE)--Fidelity Investments®, one of the industry’s largest, most experienced providers of low-cost actively-managed and index investment products, today announced it has expanded its suite of sustainability-focused index funds with a new fixed income offering: Fidelity Sustainability Bond Index Fund, which, alongside Fidelity U.S. Sustainability Index Fund (FENSX) and Fidelity International Sustainability Index Fund (FNIYX), makes Fidelity the only firm to offer environmental, social and governance (ESG) index mutual funds in every major asset class.
Fidelity’s new sustainability bond index fund is available directly to individual investors, as well as through third-party financial advisors and workplace retirement plans. The share classes are offered at market-leading prices with total net expense ratios of just .20% for the Investor Class (FNASX), .13% for the Premium Class (FNBSX), and .10% for the Institutional Class (FNDSX). In addition to the firm’s three sustainability index funds, Fidelity’s ESG investment offerings include 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.
“We know from speaking with clients, advisors and employers that interest in ESG investing continues to grow,” said Colby Penzone, senior vice president for Fidelity’s Investment Product Group. “With our latest ESG index fund offerings, which now span the major asset classes – fixed income, U.S. and international equity – we’re providing more opportunities for investors to advance specific causes and align their personal principles with their investment objectives.”
Of the more than $285 billion invested in ESG mutual funds and ETFs1 in the United States, approximately $25 billion are under administration on Fidelity’s platform. The market is expected to continue to grow in the coming years as 86% of millennials are interested in sustainable investing and 90% are interested in pursuing sustainable investments if an option in their 401k plans.2
Fidelity’s Commitment to Sustainable Investing
In addition to launching the Fidelity U.S. Sustainability Index Fund and Fidelity International Sustainability Index Fund in 2017, Fidelity also became a signatory of the United Nations-supported Principles for Responsible Investment (PRI) and created an ESG Office in its Asset Management division to further the integration of ESG considerations into investing practices. Today’s launch of the Fidelity Sustainability Bond Index Fund is a continuation of these efforts and reinforces Fidelity’s commitment to ESG investment considerations.
Fidelity Offers Educational Resources on Sustainable Investing
Investors can learn more about socially responsible investing at Fidelity.com/ESG and through Fidelity’s published research, “Sustainable Investing Based on Your Principles.” 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 Conscious.”
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 $7.0 trillion, including managed assets of $2.5 trillion as of May 31, 2018, we focus on meeting the unique needs of a diverse set of customers: helping more than 27 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 more than 40,000 associates who are focused on the long-term success of our customers. For more information about Fidelity Investments, visit https://www.fidelity.com/about.
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Fidelity Investments Institutional Services Company, Inc.,
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1 Source: Morningstar and SimFund (as of 6/21/18).
2 Source: “Sustainable Signals: New Data from the Individual Investor,” Morgan Stanley (August 2017)