Fidelity International has launched a sustainable climate solutions fund with decarbonisation at the core of its investment strategy.
The fund manager stated that to keep global warming to the 1.5 °C above pre-industrial levels as recommended in the Paris Agreement, “the global economy will need to go through a radical transformation, affecting most areas of human activity”.
The Fidelity Funds – Sustainable Climate Solutions Fund will be managed by thematic investors Velislava Dimitrova and Cornelia Furse.
The strategy aims to achieve long-term capital growth by investing in companies which enable global decarbonisation efforts.
Investee companies are said to offer technologies and solutions that materially reduce greenhouse gas emissions versus incumbent technologies.
Investments will include companies involved in the design, manufacture or sale of products or services in technologies such as electric vehicles, green hydrogen, autonomous vehicles, smart grids, and industrial automation.
Lead portfolio manager Dimitrova said: “The decarbonisation challenge is on a scale unmatched in human history. But it is one that offers the companies meeting it a 30-year period of growth that surpasses even the internet revolution.”
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