Fidelity International launches first active EFT in Australia


Alex Duffy

Fidelity International has launched its first Active ETF on the Australian Securities Exchange, the Fidelity Global Emerging Markets Fund (Managed Fund) (ASX: FEMX). 

As an active ETF, the fund has a benchmark index1 but the portfolio management team makes active decisions about the underlying portfolio allocation rather than adhering to the index, with the aim to outperform the benchmark over time.

The Fidelity Global Emerging Markets Fund provides investors with access to a concentrated portfolio of 30-50 quality emerging market companies, and is managed by portfolio manager Alex Duffy.

Mr Duffy seeks to identify companies that are well positioned to generate returns through market cycles and have also demonstrated a strong corporate governance record.  He is supported by Fidelity International’s global network of 140 research analysts and 400 investment professionals.

Alva Devoy, managing director of Fidelity International in Australia, said Fidelity had chosen emerging markets for its first active ETF because of the particular opportunities available with this asset class.

“Developing economies offer a number of benefits for investors such as favourable demographics, the development of the middle classes and increased spending power.

“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,” Ms Devoy said.

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