MEDIA RELEASE: Fidelity International has launched its Global Demographics Fund as an actively managed exchange traded fund (ETF) via the Australian Securities Exchange (ASX) under ticker ‘FDEM’.
The Fund aims to achieve returns in excess of its benchmark, the MSCI All Country World Index NR, over the medium to long term through investing in companies that will grow and benefit from changing demographic trends.
Established on 30 November 2012, the Fund is jointly managed by UK based portfolio managers Aneta Wynimko, Alex Gold, and Oliver Hextall, and holds between 50 and 70 stocks with a suggested investment timeframe of seven years.
Cross Asset Investment Specialist, Anthony Doyle said: “Over the past couple of years we’ve seen a high degree of uncertainty around the globe, particularly to do with the macroeconomic and political environment, but demographic trends remain largely predictable.
“When we look at demographic factors such as age, education, income, and employment, these have, to a large extent, not changed since the pandemic.
“We continue to see the same long-term trends that we saw before Covid. For instance, the globe is still witnessing an overall growth in population, the population is still largely aging, and the middle class is still growing. These are the three main demographic factors that the Fund bases its investments thesis on.
“Examining key fundamentals of companies through our bottom-up approach and assessing how business models will grow and benefit from demographic changes, provides the core strategy of the Fund.
“These factors will continue to evolve, and our investment team can tap into Fidelity’s global resources of more than 400 investment professionals, adding speciality knowledge and unique insights,” said Mr Doyle.
Fidelity’s Managing Director, Alva Devoy commented: “We’re launching this strategy in Australia via a listed structure because Australian investors are becoming increasingly interested in actively managed ETFs.
“And it’s not hard to understand why. Active ETFs are simple to access and you can buy and sell units in the fund via your broker or licenced adviser in the same way you buy or sell a share on the ASX. The difference is that one trade gives you access to a diversified portfolio of shares actively managed by an investment expert.
“This structure provides our clients with greater flexibility and choice of how they access our products.” said Ms Devoy.