Fidelity adds health-related ESG fund

The actively managed mutual fund uses both proprietary and third-party ESG ratings.

Fidelity Investments has launched a health-focused ESG fund, the company announced Tuesday.

Fidelity’s new, actively managed Healthy Future Fund (FAPHX) is its 23^rd ESG investment option in its line of mutual funds and ETFs. The fund, which comes in retail and adviser share classes, invests thematically in health care, nutrition, mental health, housing and ways to reduce air pollution, the company stated.

It aims to invest at least 80% of its assets in equity securities of companies “around the world whose products, services and/or technology are believed to either extend and/or improve life expectancy, enhance health and wellness in people’s lives or mitigate negative environmental impacts affecting health and wellness.”

Those holdings include businesses with at least half of their revenues coming from disease treatment, access to health care, nutrition, fitness, wearables or clean emissions, the company stated. It also includes those that are in the MSCI World Health & Wellness Select Net MA Index.

“The pandemic has put the importance of overall health and wellness at the forefront of consumer consciousness, and we believe there are many factors that will continue to drive this global trend,” Pam Holding, head of sustainable investing, said in the company’s announcement. “With this new fund, Fidelity offers investors the opportunity to gain exposure to the long-term movement of health and wellness through an actively managed sustainable strategy.”

The fund uses Fidelity’s in-house ESG ratings as well as those from third-party providers.

[More: Fidelity adds two ETFs focusing on crypto, metaverse]