Fidelity launches first active ETF in Australia
Fidelity International has announced the launch of its first active exchange-traded fund (ETF) in Australia, the Fidelity Global Emerging Markets Fund (FEMX).
The firm said that as an active ETF the fund would have a benchmark index, however, the portfolio management team would make active decisions about the underlying portfolio allocation rather than adhering to the index, with the aim to outperform the benchmark over time.
FEMX would provide investors with access to a concentrated portfolio of 30-50 quality emerging market companies and would be managed by portfolio manager, Alex Duffy.
The fund would aim to identify companies that are “well positioned to generate returns through market cycles” and which demonstrated a strong corporate governance record.
“Developing economies offer a number of benefits for investors such as favourable demographics, the development of the middle classes and increased spending power,” Duffy said.
“However, at the same time they are not without risk and in this uncertain market environment, active management is crucial.
“An active ETF strategy brings together the best of both the active and the passive world, offering investors access to our emerging markets capability and knowledge through the convenience of an ETF.”
AUTHOR
Oksana Patron
Recommended for you
Negative market movements, coupled with net outflows, have prompted a near $6 billion decline in Challenger’s funds under management for FY25’s third quarter.
The real estate investment manager has positioned the APAC region for future growth with an internal promotion to the newly created role of deputy head of Asia Pacific.
Clime Investment Management has welcomed an independent director to its board, which follows a series of recent appointments at the company.
Ethical investment manager Australian Ethical has cited the ongoing challenging market environment for its modest decrease in assets over the latest quarter.
