Fidelity launches first active ETF in Australia
Fidelity International has announced the launch of its first active exchange-traded fund (ETF) in Australia, the Fidelity Global Emerging Markets Fund (FEMX).
The firm said that as an active ETF the fund would have a benchmark index, however, the portfolio management team would make active decisions about the underlying portfolio allocation rather than adhering to the index, with the aim to outperform the benchmark over time.
FEMX would provide investors with access to a concentrated portfolio of 30-50 quality emerging market companies and would be managed by portfolio manager, Alex Duffy.
The fund would aim to identify companies that are “well positioned to generate returns through market cycles” and which demonstrated a strong corporate governance record.
“Developing economies offer a number of benefits for investors such as favourable demographics, the development of the middle classes and increased spending power,” Duffy said.
“However, at the same time they are not without risk and in this uncertain market environment, active management is crucial.
“An active ETF strategy brings together the best of both the active and the passive world, offering investors access to our emerging markets capability and knowledge through the convenience of an ETF.”
AUTHOR
Oksana Patron
Recommended for you
Six months after scrapping its planned deal with KKR, Perpetual is yet to make significant headway on the sale of its wealth management division but is focusing on alternatives for product development.
Platinum Asset Management’s NPAT has fallen by 89 per cent in FY25, with the firm confirming that it will be renamed as L1 Group following the expected completion of its merger with L1 Capital.
Statutory NPAT at Pacific Current has almost halved in FY25 to $58.2 million as the result of an investment restructure.
Being able to provide certainty about redemptions is worth fund managers pursuing when targeting the retail market even if it means sacrificing returns, according to Federation Asset Management.
