ESG Fund Factsheet

For adviser use only

Fidelity Sustainable Multi-Asset

Classification: Sustainable
Management style: Blended

Introduction

Fidelity Sustainable Multi-Asset is a fund range consisting of 3 strategies that are aligned to different levels of risk and mapped to several different risk tools.

Name Launch Date IA Sector Portfolio OCF* Fund Size (m)
Fidelity Sustainable Multi-Asset Conservative 10/06/2021 Mixed Investment 0-35% 0.50% £4
Fidelity Sustainable Multi-Asset Balanced 10/06/2021 Mixed Investment 20-60% 0.50% £4
Fidelity Sustainable Multi-Asset Growth 10/06/2021 Mixed Investment 40-85% 0.50% £4

About Fidelity

Fidelity International provides world class investment solutions and retirement expertise to institutions, individuals and their advisers to help their clients build better futures for themselves and generations to come.

Established in 1969 as the international arm of Fidelity Investments, founded in Boston in 1946, Fidelity International became independent of the US organisation in 1980, and is today owned mainly by management and members of the original founding family.

Building on active, bottom up research, they attempt to deliver superior returns for their clients by acting on intelligent insight in order to take advantage of their view that markets are only semi-efficient.

Assets under management*

£12m

Total Assets in Sustainable Fund Range

*As at 31/07/2022

ESG Process

The Fidelity Multi-Asset Sustainable portfolios invest primarily in fidelity’s own sustainable family fund ranges which are utilised alongside a selection of third-party strategies to provide specialist exposure to alternative investments.  The underlying investments include both actively managed funds and passive ETF vehicles.

The process utilises both the MSCI ESG ratings as well as Fidelity’s own sustainability ratings.  These proprietary ratings assign strategies with an ESG score from A to E using a framework developed by Fidelity’s in house research analysts and ESG specialists.

At lease 70% of the fund’s assets are invested in securities with sustainable characteristics.  The remaining 30% must be in investments that demonstrate a focus on ESG.

A long-term approach is taken to corporate engagement to target meaningful improvements in company characteristics.  Fidelity recognises the significance of active engagement and work closely with underlying strategy managers.

Exclusion Policies

Companies that derive 5% or more of their revenue from certain activities relating to Tobacco, Weapons or Thermal coal are excluded. Companies involved in controversial weapons and who have violated the UN Global Compact are also excluded Further details can be found in the fund ranges supporting documents here.

Cost

The OCF for this fund is 0.50%, which is very competitive for a blended multi-asset fund which integrates ESG considerations into the investment process.

*based on a comparison of the average cost of a range of select multi asset blended ESG funds

Investment Performance

The fund range performance is measured against the Mixed Investment sector averages according to the risk profile of each fund.

The funds have only been running since 2021, so only short term performance is available. Measuring cumulative performance since inception, all funds in the range are outperforming the sector average. Performance was measured up to 25th August 2022.

*Source FE Analytics

Past performance is not a guide to future performance.

Platform availability

Fidelity Multi-Asset funds are available on the following platforms:

7IM Embark
Abrdn Elevate Fidelity
AEGON (ARC) Hubwise
AEGON James Hay
Parmenion Quilter
M&G Wealth Aviva
AEGON One Retirement

Risk tools

Fidelity Multi-Asset funds are mapped to the following risk tools:

  • Dynamic Planner
  • Defaqto
  • Oxford Risk
  • Synaptic
  • Finametrica

Supporting documents

Tenet Opinion

The Fidelity Sustainable Multi-Asset range is a more recently launched proposition within the sustainable investment space.  As such, the proposition is still relatively small in terms of assets under management.  The portfolios draw upon the existing Fidelity sustainable family exclusion framework which utilises Fidelity’s proprietary ESG scoring.  Fidelity has extensive global resources comprising of multiple analysts and ESG specialists which input into their sustainable framework.

Stewardship and corporate engagements are core to the process.  Through the utilisation of existing Sustainable Investment vehicles within the multi-asset funds the portfolio managers have a clear overview of the corporate engagement activities being undertaken by Fidelity.  Examples of recent corporate engagements are provided within the literature and the fund range is therefore likely to appeal to clients attracted by the concept of an active engagement approach.

Information approved for Professional Adviser use only and should not be relied upon by private investors (this is not for Retail Clients).