Fidelity launches first active ETF in Australia

Fidelity International exchange traded funds ETFs emerging markets EMs active ETFs Alex Duffy

6 November 2018
| By Oksana Patron |
image
image
expand image

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.”

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Interesting. Would be good to know the details of the StrategyOne deal....

3 days 18 hours ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 1 day ago

increased professionalism within the industry - shouldn't that say, FAR register almost halving in the last 24 months he...

4 weeks 1 day ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 3 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

2 days 16 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

1 day 19 hours ago