>
Fidelity capitalizes on biodiversity trend with launch of new sustainability fund as it warns of ‘urgent threat’ to nature
- Fidelity adds a biodiversity fund to its growing range of sustainable funds
- The fund will be managed by Velislava Dimitrova
- It will invest in companies that provide solutions to biodiversity loss
<!–
<!–
<!–<!–
<!–
<!–
<!–
Investment giant Fidelity has launched a biodiversity fund as part of its growing sustainable range that warns of the ‘urgent threat’ to wildlife in the coming decade.
Biodiversity is a largely neglected subsector of sustainable investing – investments in biodiversity currently amount to $133 billion a year according to the UN, compared to $800 billion in climate change.
This year, however, the World Economic Forum warned that the top three risks for the next 10 years are related to biodiversity loss.
The UN Environment Program estimates that $8.1 trillion will be needed between now and 2050 to maintain the commitment to biodiversity.
Biodiversity is the different types of life found in nature, but with increasing human pressure on the planet, there is a risk that the balance will be disrupted
Fidelity’s Sustainable Biodiversity Fund will give investors exposure to a portfolio of companies seeking to conserve biodiversity around the world.
It will be managed by Velislava Dimitrova, who also manages Fidelity’s Sustainable Water & Waste fund and Sustainable Climate Solutions strategies.
The fund will invest in companies that offer solutions for biodiversity loss and in best-in-class companies.
Fidelity has defined these as leading companies in the space or companies developing new solutions to minimize biodiversity loss.
‘In the past, market participants have taken nature for granted and seen this capital as a perpetual resource. But there are indications that nature continues to deteriorate as a result of human activity,” says Dimitrova.
‘The world is now becoming aware of the urgent threat to biodiversity and natural capital. Biodiversity investment solutions are emerging as the biggest investment megatrend in our generation and provide opportunities for investors.
‘The theme is at a turning point and is transforming too late from a neglected risk to a top priority.’
The fund will invest across sectors, regions and market capitalizations and 70 percent of the fund’s net assets will be invested in companies with sustainable characteristics.
According to the key investor information document, it has a risk rating of five out of seven and a recurring annual fee of 0.91 percent, with no entry or exit charges.
The fund’s launch is due to investor interest in areas that span priorities such as environment, sustainable infrastructure and health.
A number of funds use renewable energy, which is widely adopted and particularly relevant in the current energy crisis.
Earlier this month, Fidelity launched its own new thematic ETF series, comprising five new products, including clean energy and electric vehicles and future transportation.