BOSTON–(BUSINESS WIRE)–Fidelity Investments® today announced the launch of a new Environmental, Social and Governance (ESG) fund – Fidelity Healthy Future Fund (FAPHX), an actively-managed equity strategy that invests in companies around the world whose products, services, and/or technology are believed to either extend and/or improve life expectancy, enhance health and wellness in people’s lives, or mitigate negative environmental impacts affecting health and wellness.
The new mutual fund expands Fidelity’s lineup of thematic sustainable funds, which includes equity, fixed income, high income, and asset allocation strategies, that help customers connect their financial goals to positive themes in the broader world. The Fidelity Healthy Future Fund invests in themes such as healthcare, nutrition, mental health, reduction in air pollution, and housing. It has no investment minimums and is available for individual investors and financial advisors to purchase commission-free through Fidelity’s online brokerage platforms. The fund offers both retail and advisor share classes.
“The pandemic has put the importance of overall health and wellness at the forefront of consumer consciousness, and we believe there are many factors that will continue to drive this global trend,” said Pam Holding, Co-Head of Equity and Head of Sustainable Investing at Fidelity Investments. “With this new fund, Fidelity offers investors the opportunity to gain exposure to the long-term movement of health and wellness through an actively-managed sustainable strategy.”
In addition to fundamental, bottom-up financial analysis, the fund will use Fidelity’s proprietary forward-looking and historical ESG ratings framework alongside third-party ESG ratings to create a more complete picture of a company’s or issuer’s sustainable business practices.
“We pair our proprietary ESG ratings with the depth and breadth of our fundamental research capabilities to uncover unique company insights,” said Holding. “We believe the two facets of Fidelity’s proprietary ESG ratings framework, covering both current and future potential, is unique in the evolving world of ESG data and analysis.”
About Sustainable Investing at Fidelity
Fidelity’s sustainable investment product lineup includes thematic sustainable funds that focus on a specific ESG theme, and broad sustainable funds that include all three ESG themes, available at www.fidelity.com/sustainable. This launch builds on Fidelity’s continued commitment to provide customers choice in the investment products we offer. Earlier this year, Fidelity launched five fixed income sustainable funds and ETFs. With the addition of this new fund, Fidelity now offers investors and advisors 23 actively-managed and index sustainable mutual funds and ETFs. Fidelity also offers separately managed accounts (SMAs) that can be customized by excluding certain companies or industries from the portfolio. Fidelity’s Mutual Fund Evaluator enables investors to search for socially responsible mutual funds, among other factors.
Additionally, to help advisors discuss sustainable investing and ESG with their clients, Fidelity created a new landing zone equipped with tools, videos and thought leadership, available at: i.fidelity.com/sustainable. The new landing zone integrates ESG Pro, Fidelity’s end-to-end technology solution designed to make ESG investing more accessible for financial advisors. Launched in 2021, ESG Pro combines model construction tools and ESG client experience tools to help advisors talk about sustainable investing with their clients.
Fidelity also provides education and thought leadership on sustainable investing, including two whitepapers on its proprietary ESG ratings, “The beliefs and philosophical underpinnings of Fidelity’s proprietary ESG Ratings” and “ESG ratings: Look closer.”
Principal Investment Strategies for Fidelity Health and Wellness Fund
Fidelity Healthy Future Fund normally invests at least 80% of the fund’s assets in equity securities of companies that the portfolio manager believes are working to: (i) extend and/or improve life expectancy, enhance health and wellness in people’s lives, and/or (ii) mitigate environmental impacts affecting health and wellness, in each case through the products, services, or technology they provide. Such companies include those that (i) attribute 50% or more of their revenues to products focused on disease treatment, health care access, nutrition, fitness and wearables, or clean emissions, or (ii) with respect to seeking to mitigate environmental impacts, those that are contained in the MSCI World Health & Wellness Select Net MA Index.
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 $10.5 trillion, including discretionary assets of $4.0 trillion as of April 30, 2022, we focus on meeting the unique needs of a diverse set of customers. Privately held for over 75 years, Fidelity employs more than 58,000 associates who are focused on the long-term success of our customers. For more information about Fidelity Investments, visit https://www.fidelity.com/about-fidelity/our-company.
$0.00 commission applies to online U.S. equity trades and Exchange-Traded Funds (ETFs) in a Fidelity retail account only for Fidelity Brokerage Services LLC retail clients. Sell orders are subject to an activity assessment fee (from $0.01 to $0.03 per $1,000 of principal). Other exclusions and conditions may apply. See [Fidelity.com/commissions] (https://www.fidelity.com/trading/commissions-margin-rates) for details. Employee equity compensation transactions and accounts managed by advisors or intermediaries through Fidelity Clearing & Custody Solutions<sup>®</sup> are subject to different commission schedules.
Zero account minimums apply to retail brokerage accounts only. Account minimums may apply to certain account types (e.g., managed accounts) and/or the purchase of some Fidelity mutual funds that have a minimum investment requirement. See Fidelity.com/commissions and/or the fund’s prospectus for details.
Diversification and asset allocation do not ensure a profit or guarantee against loss.
Stock markets, especially foreign markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments.
Application of FMR’s ESG ratings process and/or its sustainable investing exclusion criteria may affect the fund’s exposure to certain issuers, sectors, regions, and countries and may affect the fund’s performance depending on whether certain investments are in or out of favor. This process may result in the fund forgoing opportunities to buy certain securities when it might otherwise be advantageous to do so, or selling securities for ESG reasons when it might be otherwise disadvantageous for it to do so.
Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks. The value of securities of small to medium size, less well-known issuers can perform differently from the market as a whole and other types of stocks and can be more volatile than that of larger issuers. Non-diversified funds that focus on a relatively small number of stocks tend to be more volatile than diversified funds and the market as a whole.
While environmental, social and corporate governance (ESG) factors are available to incorporate into our investment process across all Fidelity fund offerings, ESG assessments represent one of many pieces of research available to the portfolio managers and the degree to which it impacts a fund’s holdings may vary fund by fund based on the portfolio manager’s discretion. Investing based on ESG factors may cause a strategy to forgo certain investment opportunities available to strategies that do not use such criteria. Because of the subjective nature of sustainable investing, there can be no guarantee that ESG criteria used by Fidelity will reflect the beliefs or values of any particular client.
“Fidelity Managed Accounts” or “Fidelity managed accounts” refer to the discretionary investment management services provided through Fidelity Personal and Workplace Advisors LLC (FPWA), a registered investment adviser. These services are provided for a fee. Brokerage services provided by Fidelity Brokerage Services LLC (FBS), and custodial and related services provided by National Financial Services LLC (NFS), each a member NYSE and SIPC. FPWA, FBS, and NFS are Fidelity Investments companies.
The MSCI ACWI captures large- and mid-cap representation across 23 Developed Markets (DM) and 24 Emerging Markets (EM) countries. With 2,937 constituents, the index covers approximately 85% of the global investable equity opportunity set. (Definition from MSCI.com, as of April 29,2022.)
The MSCI World Health & Wellness Select Net MA Index aims to represent the performance of select set of companies associated with the development of new products and services focused on enhancing the quality and longevity of human life. (Definition from MSCI.com, as of January 2022.)
Before investing in any mutual fund or exchange-traded fund, you should consider its investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus, an offering circular, or, if available, a summary prospectus containing this information. Read it carefully.
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