Fidelity partners with ebi for launch of ESG index fund
Fidelity International has launched an ESG-screened global equity index fund, seeded with £320m from discretionary fund manager ebi.
The Fidelity Index World ESG Screened fund aims to track the performance of the MSCI World IMI (Investable Market Index) Screened (Net Total Return) Index, which applies the most common exclusionary screens across ESG pillars, targeting a 30% reduction in carbon emission intensity relative to the parent index, the MSCI World IMI Index. The index measures the performance of large-, mid- and small-cap companies across developed markets, covering approximately 99% of the available market capitalisation in each country.
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The fund is available to the broader market as well as ebi clients and carries a fixed ongoing charges figure (OCF) of 0.15% – ebi clients get a preferential rate in a separate share class.
Dennis Pellerito, head of wholesale, UK, Fidelity International, commented: “As a solutions-driven business, we are always looking at innovative ways to provide our clients with the best investment opportunities to suit their demands. Partnering with ebi to extend our investment capability at competitive prices reaffirms our commitment to deliver greater choice and value for clients.”
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Meanwhile, Jonathan Griffiths, investment product Manager at ebi, added: “We are pleased to offer our clients first access to the newly launched Fidelity Index World ESG Screened fund. We know that investors seek to invest in line with their values, while also demanding low-cost, competitively priced investment solutions. With a focus on evidence-based, low-cost investing, the fund aligns with ebi’s commitment to the adviser network we serve.”
The fund sits alongside the £11bn Fidelity Index World fund, within Fidelity’s existing index range, including seven equity index and three fixed income tracker funds.
This article first appeared in Portfolio Adviser.