Fidelity International initiates a new sustainable biodiversity fund, giving investors access to a worldwide equity portfolio of businesses working to protect biodiversity.
The Fidelity Funds – Sustainable Biodiversity fund, managed by Velislava Dimitrova, aims to generate long-term capital growth by investing in the value chain of businesses that offer solutions to decrease biodiversity loss.
Moreover, the fund will invest in “best-in-class” enterprises for biodiversity, which the company characterized as either those who are leading the market in terms of their own operational innovation to minimize impact on diversity, or those are creating innovative new approaches to address biodiversity loss.
According to the company, solution providers and “best-in-class” businesses are both varied globally and by industry. They cover a wide range of economic sectors.
However, the Article 8 strategy, which will hold 40 to 60 positions, will be benchmarked against the MSCI ACWI index.
“Market participants have always taken nature for granted, perceiving this capital stock as a perpetual resource, yet data reveals that nature is still deteriorating due to human activities,” stated Dimitrova.
She added that the serious threat to biodiversity and natural capital was being recognized by the world today. Also, Dimitrova said that the biggest financial megatrend of our time was developing as biodiversity investment solutions, which offered chances for investors.
The latest addition to the company’s expanding lineup of sustainable funds is the new launch. 70% of the portfolio’s net assets will be invested in issuers that uphold sustainable features as part of a sustainable theme strategy.
“By attacking biodiversity loss from a 360-degree lens, this product may invest across a range of industries and possibilities, delivering a diverse product structure,” said Christophe Gloser, head of sales for continental Europe at Fidelity.
The finest ideas from the perspectives of alpha creation and biodiversity preservation can be found by stretching the scope of the project’s mandate across industries, nations, and market capitalizations, he claimed.
