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Fidelity Investments

PRI reporting framework 2020

Export Public Responses

You are in Strategy and Governance » Investment policy

Investment policy

SG 01. RI policy and coverage

New selection options have been added to this indicator. Please review your prefilled responses carefully.

01.1. Indicate if you have an investment policy that covers your responsible investment approach.

01.2. Indicate the components/types and coverage of your policy.

Select all that apply

Policy components/types

Coverage by AUM

          UK Stewardship Code

01.3. Indicate if the investment policy covers any of the following

01.4. Describe your organisation’s investment principles and overall investment strategy, interpretation of fiduciary (or equivalent) duties,and how they consider ESG factors and real economy impact.

As long-term investors, Fidelity manages funds and accounts with the overriding goal of providing the greatest possible return to shareholders and clients consistent with the investment Guidelines and objectives of each fund and account. As part of our process of deciding whether to buy, or sell, a company's securities, we take into consideration corporate governance practices, including ESG issues where we believe those issues are material to the company's outlook and/or valuation. Fidelity believes that strong management creates long-term shareholder value, and we generally support management of companies in which we have invested fund and account assets. While we generally do not screen out companies from our investment universe, with the exception of select products, Fidelity believes that evaluating companies from a variety of perspectives helps us develop a more robust information mosaic on which we can build our investment theses. Therefore, ESG considerations are generally incorporated into our evaluation of an issuer's investment risk or return, across all asset classes, sectors, and markets in which we invest. To this end, we are committed to providing our investment teams with resources to inform their investment decisions about individual securities, including research and data on ESG topics.

01.5. Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]

Fidelity believes that best-managed companies work to maintain balance among varied interests across stakeholders and have transparent and clear policies to engage with stakeholders.  This balance includes having policies that address ESG issues in the communities in which a company operates.  We believe that these issues generally make good business sense, and ESG considerations are generally incorporated into our evaluation of an issuer’s investment risk or return.
Our investment policy covers all of our AUM.  

We have access to independent third-party research that provides company-specific ESG research and data as an additional tool for our investment professionals to use as they evaluate investment opportunities.

01.6. Additional information [Optional].


SG 01 CC. Climate risk (Private)

SG 02. Publicly available RI policy or guidance documents


02.1. Indicate which of your investment policy documents (if any) are publicly available. Provide a URL and an attachment of the document.



Other, specify (1) description

          UK Stewardship Code


02.2. Indicate if any of your investment policy components are publicly available. Provide URL and an attachment of the document.

02.3. Additional information [Optional].

SG 03. Conflicts of interest

03.1. Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process.

03.2. Describe your policy on managing potential conflicts of interest in the investment process.

Fidelity has policies, procedures and governance in place that are intended to address actual or potential conflicts of interest in its business. As a fiduciary, Fidelity manages its funds and accounts in a manner consistent with the interests of our shareholders without regard to any other Fidelity companies' business relationships. To this end, our policies and procedures cover a number of areas including, but not limited to, personal trading, employee outside activities, and trade allocation. Fidelity's conflicts of interest policy is designed to address situations and activities that may give rise to actual or potential conflicts, or even the appearance of a conflict between an employee's personal interest or those of his or her immediate family members and Fidelity's interests, including the related interests of Fidelity's customers, fund shareholders, and other clients.

03.3. Additional information. [Optional]

SG 04. Identifying incidents occurring within portfolios

04.1. Indicate if your organisation has a process for identifying and managing incidents that occur within investee entities.

04.2. Describe your process on managing incidents

Fidelity has systematically incorporated, across asset classes, material environmental, social, or governance impacts and/or incidents into our internal monthly reporting documents sent to portfolio managers, in addition to the CIO's Quarterly Investment Review (QIR) oversight process. As part of the QIR, the CIO and portfolio manager discuss material controversies within their holdings.

Currently, analysts and portfolio managers have access to ESG research from multiple providers, specialists on the sell-side, and internal analytics, and generally incorporate implications of those issues/controversies into their research and valuations.