Italy’s federation of local banks Cassa Centrale Banca has appointed Fidelity International (Fidelity) to run its new NEF Ethical Total Return Bond fund, a product aimed at individuals interested in bonds’ investment in a sustainable and socially responsible way.
The fund invests in global bonds labeled with high ESG standards while targets those customers with a medium-long term investment horizon.
Managed by Fidelity’s Claudio Ferrarese, the NEF Ethical Total Return Bond fund, aims at achieving a positive return and capital appreciation during a whole market cycle, coupled with low volatility and decorrelation from the equity market. It has a flexible approach and is not constrained to an index.
Fidelity International Europe’s head of institutional Steve Edgley, said: “Providing an ESG focused fund is not just about ensuring personal value to an investor. By focusing on the sustainability of a business, we are able to target companies with better performance and lower default rates, two very important aspects in a fixed income investment.”
Fidelity manages around $80bn in fixed income at a global level, through a range of bond investment strategies marked high by the United Nations authority for sustainable investment (UNPRI).