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.”
Recommended for you
The alternative investment manager has signalled its intentions to repackage an existing fund into a second private equity vehicle, targeting both listed and unlisted opportunities.
The acquisition of Mason Stevens by Adamantem Capital has reached completion, as the wealth platform looks to increase investment into its services for Australian wealth practices.
Platinum Asset Management and VanEck have both announced name changes to multiple of their ETFs to clarify their complexity.
Active ETFs are gaining traction in Asia-Pacific as wealth managers seek to blend the low-cost fees of passive with active management.