Fidelity International to launch first active ETF

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MEDIA RELEASE  Fidelity International is set to launch its first Active ETF on the Australian Stock Exchange at the end of this month.

Fidelity Active ETF Global Emerging Markets Fund (ASX: FEMX) is managed by experienced portfolio manager Alex Duffy and provides investors with access to a concentrated portfolio of 30-50 quality emerging market companies.

 Alex aims 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 emerging markets were the ideal asset class for Fidelity to launch its first active ETF. “As the global economy slows, our clients are increasingly looking to us to help them diversify their sources of returns.  Developing economies offer a fantastic opportunity due to a range of factors such as favourable demographics, the development of the middle classes and increased spending power.

 “However, it’s important to understand that they are not without risk and in this uncertain market environment, active management is crucial. That’s why we’re excited to be able to offer investors access to our emerging markets fund through the convenience of an Active ETF.”

 Alex Duffy, Portfolio Manager of Fidelity Active ETF Global Emerging Markets Fund, comments:  “Emerging markets have always been important to the global economy due to their size.  Over the last 20-30 years, we’ve seen emerging market GDP go from 30-40% of global output to almost 60%. In my view, this makes them too big to ignore.

 “While some of these markets have faced tough times in recent months, we continue to find opportunities to invest in good quality businesses exposed to enduring themes such as the growth of consumption.  My focus is on those companies with strong corporate governance, strong balance sheet structures and good quality return profiles, all at a valuation that provides a margin of safety.”

Fidelity Active ETF Global Emerging Markets Fund (ASX: FEMX) is expected to open for investing on 29 October.

About the portfolio manager

Alex Duffy has 14 years’ experience, joining Fidelity in 2004, and manages the successful unlisted Fidelity Global Emerging Markets Fund which was launched in Australia in 2013 and has delivered 9.83% pa since inception exceeding the benchmark return of 8.68%.1

Prior to becoming a portfolio manager, Alex was a research analyst covering raw materials and natural resources before moving into portfolio management in 2008.  Since April 2015, Alex has been solely focused on managing global emerging market equities.