Fidelity Asset Management Launches Two Sustainable Investment Funds

[Asia Economy Reporter Minji Lee] Fidelity Asset Management announced on the 9th that it has launched the representative sustainable investment funds, the ‘Fidelity Sustainable Asia Fund’ and the ‘Fidelity Sustainable Water & Waste Fund.’

The ‘Fidelity Sustainable Asia Fund,’ which began sales on the 16th of last month, is a fund that invests in Asia-Pacific region stocks excluding Japan. It seeks excess returns by investing not only in companies with high ESG ratings but also in companies whose ESG characteristics are improving.

The offshore fund primarily invested in by the fund is the ‘Fidelity Sustainable Asia Fund,’ which invests at least 70% in stocks with high ESG ratings and can invest up to 30% in companies with improving sustainability. To this end, a portfolio manager who is an ESG expert was also recruited. Previously, only Fidelity’s own exclusion list was applied, but now a more strengthened exclusion policy such as the UN Global Compact is also applied.

On the 6th, the ‘Fidelity Sustainable Water & Waste Fund’ was launched. It invests in 33-35 companies that are exposed to water resources and waste-related themes worldwide by more than 40%, considering ESG characteristics. At least 70% of the companies are evaluated to maintain sustainability features.

The water resource management sector mainly includes companies involved in water production, water treatment, desalination, water supply, bottled water production, water transportation, and water distribution, while the waste management sector mainly includes companies related to the collection, recovery, and disposal of waste such as recycling, incineration, anaerobic digestion (biological treatment) of food waste, and landfill of residual waste. The portfolio’s water and waste proportions are generally around 60% and 40%, respectively.

Water resources are essential factors for maintaining daily life and economic development, with demand expanding due to urbanization, population growth, and increased consumption. Waste is a byproduct increasing alongside wealth creation, and incineration and landfill of waste are no longer welcomed methods; preferences for decomposition, recycling, reuse, and reduction are on the rise.

CEO Jun Kwon stated, “We have launched Fidelity’s representative sustainable investment funds to meet the globally recognized and domestically expanding ESG investment needs,” adding, “Fidelity’s expertise in sustainable investment, operated through an integrated research process reflecting ESG factors, active engagement to improve the long-term corporate behavior of investee companies, and collaboration with companies and industry leaders for sustainable investment and positive social development, is expected to provide investors with advanced investment opportunities.”

The Fidelity Sustainable Asia Fund and the Fidelity Sustainable Water & Waste Fund can be subscribed to through Citibank Korea and KB Kookmin Bank, respectively, and Fidelity Asset Management plans to gradually expand sales channels in the future.

This content was produced with the assistance of AI translation services.