Fidelity International Adopts ‘Sustainability Mixed Goals’ Label for UK Multi-Asset Funds
Fidelity International adopts the ‘Sustainability Mixed Goals’ label for three UK multi-asset funds, aligning with FCA’s SDR framework to enhance transparency and support sustainable investing while balancing financial growth and environmental impact.
The Financial Conduct Authority (FCA) has introduced four labels to help UK consumers navigate the sustainable investment product landscape - these are ‘Sustainability Mixed Goals’, ‘Sustainability Improvers’, ‘Sustainability Impact’ and ‘Sustainability Focus’. The 'Sustainability Mixed Goals' label applies to investment products that pursue a mix of sustainability objectives and approaches from at least two of the other label categories.
The three Fidelity funds - Fidelity Sustainable Multi Asset Balanced Fund, Fidelity Sustainable Multi Asset Conservative Fund and Fidelity Sustainable Multi Asset Growth Fund - aim to increase the value of investments over a typical market cycle of 5-7 years, whereby 70% or more of the assets will invest in (i) funds and other assets which contribute to positive environmental and / or social outcomes (‘Sustainability Focus’) and (ii) funds which have the potential to contribute to positive environmental outcomes set out by the Paris Agreement’s climate targets by restricting carbon emissions exposures in line with EU Paris-aligned benchmark (PAB) requirements (‘Sustainability Improvers’).
Fidelity’s proprietary Sustainable Development Goal (SDG) tool, the EU Taxonomy, Use-of-Proceeds bonds and Paris-Aligned benchmarks are used to establish robust standards that the funds will be monitored and reported against.
Fidelity previously announced its intention to adopt the ‘Sustainability Focus’ SDR label for three funds within its UK domiciled equity fund range - the Fidelity Sustainable UK Equity Fund, Fidelity Sustainable Global Equity Fund and Fidelity Sustainable European Equity Fund.
The labels complement Fidelity’s overarching Sustainable Investing Framework, offering clients enhanced clarity and transparency on Fidelity's global approach to sustainable investing while also aligning with local environmental, social and governance (ESG) regulations and client requirements.
Jenn-Hui Tan, Chief Sustainability Officer at Fidelity International comments: “At Fidelity International we remain dedicated to supporting investors in finding innovative investment solutions, balancing both financial and sustainability requirements.
“We believe the SDR framework plays a role in promoting transparency and consistency to our UK clients when it comes to sustainable investing, empowering investors to make informed decisions that align with their values. Our intention to adopt the “Mixed Goals” SDR labels builds on the momentum of our previous announcement to apply the “Sustainability Focus” label to three of our UK domiciled equity funds.”
