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Fidelity, Amundi US, Neuberger Berman All Expanding Sustainability Focus

The latest managers making changes to expand their sustainable investment offerings

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  • Written by  Banking Exchange staff
Fidelity, Amundi US, Neuberger Berman All Expanding Sustainability Focus

Fidelity launched four new environment, social and governance (ESG) themed products, including three mutual funds and an exchange-traded fund (ETF).

The launches bring the company’s range of sustainable mutual funds and ETFs to 15.

The Fidelity Sustainable International Equity Fund (FSYRX) and the Fidelity Sustainable Emerging Markets Equity Fund (FSYJX) are designed to target companies with proven or improving sustainability practices in developed and emerging markets, respectively.

The Fidelity Sustainable Multi-Asset Fund (FYMRX) invests across Fidelity’s actively and passively managed sustainable funds, while the Fidelity Sustainable High Yield ETF (FSYD) tracks an index of high-yield bonds from issuers with proven or improving sustainability practices.

Pam Holding, co-head of equity and head of sustainable investing at Fidelity, said: “The integration of our proprietary ESG ratings into these four new products will offer our customers building block solutions to help connect their financial goals to positive themes in the broader world.”

The funds will use Fidelity’s proprietary forward-looking and historical ESG ratings frameworks in addition to third-party ESG ratings. They build upon five ESG products introduced by Fidelity in the summer of last year, which focused on sustainability, environment, climate change and gender diversity.

Elsewhere, Amundi is to rename and reposition its Pioneer Global Equity Fund to Pioneer Global Sustainable Equity Fund.

Marco Pirondini, head of US equities and portfolio manager at Amundi, said the change “formally recognizes the fund’s focus on investing in sustainable companies, which we believe will help the fund continue to pursue its drive for long-term performance”.

The repurposed product will sit alongside two existing global sustainable equity funds, the Pioneer Global Sustainable Growth Fund and Pioneer Global Sustainable Value Fund.

Other companies to have launched ESG themed products in February include Neuberger Berman, which announced its new Sustainable Asia High Yield Fund on 14 February.

Managed by Nish Popat, Sean Jutahkiti and Prashant Singh, the fund is designed to target companies providing low-carbon energy solutions while also having a carbon intensity approximately 30% lower than the wider Asian high-yield investment universe.

AXA Investment Managers this month launched two fixed income products with ESG tilts. The AXA World Funds ACT Social Bonds Fund is designed to invest in companies addressing UN Sustainable Development Goals relating to broad social issues, while the AXA ACT Green Short Duration Bond Fund allocates to green-labelled bonds while also aiming for a low sensitivity to interest rates.

Finally, at the start of February Engine No. 1 – the activist investment group that succeeded in disrupting ExxonMobil’s board last year – has launched a Transform Climate ETF investing in companies that should benefit from the transition to a low-carbon energy system.

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