Fidelity launches fund focused on female leadership

Fidelity launches fund focused on female leadership
Gender-focused strategies are growing in popularity with socially conscience investors.
MAY 08, 2019
By  Bloomberg

Fidelity Investments has started a mutual fund that invests in companies with a high percentage of women in leadership positions. The actively managed Women's Leadership Fund was launched on Wednesday, according to a statement from Boston-based Fidelity, which is led by Abby Johnson. The fund will invest in about 100 companies that have either one-third women board members, a woman on the senior management team or that meet gender diversity initiatives for hiring, retention, paid leave and promotion of women. (More:ESG funds boosted by women and millennial investors) "I'm looking for companies that I believe are committed to female leadership and development, that can grow earnings more than the market and that have resilient businesses models," said Nicole Connolly, Fidelity's head of ESG investing and the fund's portfolio manager. Strategies that focus on gender are growing in popularity as managers appeal to more socially conscience investors. The Fidelity fund sets a high bar for such funds, which typically require that a company have from one to three women on their board to qualify for the strategy. Ms. Connolly said she hopes her fund will be an incentive for companies to promote and hire more women and will back proposals at companies that push for gender targets. She said the average percentage of women on boards in the Russell 3000 index is about 17%. (More:Lipper plans ESG scoring system for mutual funds) The Women's Leadership Fund, which can allocate across all sectors, is looking at about 700 companies in the Russell 3000 index as potential investments and expects that universe to keep growing. It has no investment minimums. There are about 40 gender-focused investment funds, according to data tracked by Bloomberg, and more than half of them were launched since 2017.

Latest News

SEC bars ex-broker who sold clients phony private equity fund
SEC bars ex-broker who sold clients phony private equity fund

Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.

The key to attracting and retaining the next generation of advisors? Client-focused training
The key to attracting and retaining the next generation of advisors? Client-focused training

From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.

Chuck Roberts, ex-star at Stifel, barred from the securities industry
Chuck Roberts, ex-star at Stifel, barred from the securities industry

"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.

SEC to weigh ‘innovation exception’ tied to crypto, Atkins says
SEC to weigh ‘innovation exception’ tied to crypto, Atkins says

Chair also praised the passage of stablecoin legislation this week.

Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest
Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest

Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.