Notification of changes to underlying funds of various Fidelity Funds
03 Mar 2025
- J84 Fidelity Sustainable Europe Equity
- H88 Fidelity Sustainable Europe Equity *
(Affected Mirror Funds 1-2)
- R27 Fidelity Global Multi Asset Growth & Income (EUR)
- Z28 Fidelity Global Multi Asset Growth & Income (EUR)*
- R26 Fidelity Global Multi Asset Growth & Income (USD)
- Z29 Fidelity Global Multi Asset Growth & Income (USD)*
(Affected Mirror Funds 3-6)
We have been notified by Fidelity Funds ("Fidelity”) of changes to the underlying funds of the Affected Mirror Funds 1-6. These changes will take effect from 28 March 2025 (the “Effective Date”).
Change of name and additional exclusions - Affected Mirror Funds 1-2
Fidelity has advised that from the Effective Date, the underlying fund of Affected Mirror Funds 1-2 will be renamed from Fidelity Funds - Sustainable Europe Equity Fund to Fidelity Funds – Europe Equity ESG Fund. Accordingly, the name of Affected Mirror Funds 1-2 will change from the Effective Date:
| Affected Mirror Fund name before Effective Date | Affected Mirror Fund name after Effective Date |
| J84 Fidelity Sustainable Europe Equity | J84 Fidelity Europe Equity ESG (EUR) |
| H88 Fidelity Sustainable Europe Equity * | H88 Fidelity Europe Equity ESG (EUR)* |
Fidelity state that the name change of the underlying fund is for consistency within its fund range and does not impact the fund investment objective or policy.
From the Effective Date, the underlying fund of Affected Mirror Funds 1-2 will apply Paris-aligned Benchmark exclusions, in addition to its current Environmental, Social and Governance (“ESG”) exclusions.
Introduced by the EU in December 2019 as a key legislative initiative of its ‘Action Plan: Sustainable Growth’, Paris-aligned Benchmarks set a harmonised EU-wide standard for the implementation of decarbonisation objectives by requiring investment portfolios to ‘self-decarbonise’ by 7% of their emissions annually.
Paris-aligned Benchmark exclusions typically exclude fossil fuel companies, high carbon emitters and companies which violate environmental standards. The exclusions are designed to support the transition to a low-carbon economy and climate change mitigation. Fidelity note that it does not consider the Paris-aligned Benchmark exclusions to be disruptive to the investment process of the underlying fund of Affected Mirror funds 1-2.
Amendment to investment policy - Affected Mirror Funds 3-6
From the Effective Date, the investment process of the underlying fund of Affected Mirror Funds 3-6 will change to reflect that it promotes environmental and/or social characteristics as defined under Article 8 of the EU’s Sustainable Finance Disclosure Regulation (“SFDR”). Article 8 funds are those that promote social and/or environmental characteristics, invest in companies that follow good governance, give binding commitments but do not have a sustainable investment objective.
The Investment Manager of the underlying fund of Affected Mirror Funds 3-6 ('the Investment Manager") will consider ESG characteristics when assessing investment risks and opportunities. In determining ESG characteristics, the Investment Manager will take into account ESG ratings provided by Fidelity or external agencies. Through the investment management process, the Investment Manager aims to ensure that investee companies follow good governance practices. In addition, a minimum of 70% of the underlying fund assets adhere to specific multi asset ESG criteria.
The changes to the Affected Mirror Funds 1-6 will happen automatically in policies. Policyholders do not need to take any action as a result of the change if they wish to remain invested in Affected Mirror Funds 1-6.
Further information regarding sustainable investing and ESG integration can be found in the Prospectus of the underlying funds of Affected Mirror Funds 1-6 and on Fidelity's sustainable investing framework webpage.
Should you have any questions regarding these changes, please contact the Investment Marketing team.
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*Fund applicable to Hong Kong Offshore designated policyholders - These are policyholders who did not sign their FPIL policy application in Hong Kong, however, their policy was processed through our Hong Kong branch. They can invest in SFC and non SFC-authorised funds.
