Fidelity is making a series of changes to the £101.2m Fidelity Emerging Europe Middle East & Africa fund, including widening its investment universe, making it part of the sustainable family of funds and replacing the management team.
The changes, which will take place on 23 March, will lead to an investment policy change and the fund being re-named the Fidelity Sustainable Emerging Markets Equity fund.
Portfolio management of the fund will move from Nick Price (pictured), who has managed the fund since its launch in 2008 and his co-managers Chris Tennant and Zoltan Palfi who were appointed in April last year.
The new management team will consist of Amit Goel, Punam Sharma and Sherry Qin.
Goel has been at the firm since 2006 as a research specialist. In December 2019, he became the co-manager of Nick Price-led Global Emerging Markets fund and in May 2021 became leader portfolio manager for Emerging Markets Focus, alongside Sharma. He also provides management of Fidelity's India fund and Fidelity's India focus fund.
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Sharma joined Fidelity in 2016 as director of equities and Qin joined in 2015.
While there will be no change in fees, the fund's comparative index will change from the MSCI Emerging EMEA Capped 5% index to the broader MSCI Emerging Markets index.
The fund has returned 143.3% from launch until 16 February, according to FE fundinfo.
Russell Lancaster, head of intermediary sales, UK wholesale at Fidelity International said the launch of the reformed fund will help Fidelity meet the growing demand for investing in sustainable businesses within emerging markets.
"It is our belief that many emerging market countries have the potential to sustain high levels of economic growth due to a combination of attractive demographic profiles, immature markets and generally low levels of indebtedness," he explained.
"Moreover, we are confident that investing in companies that consider a range of environmental, social and governance factors alongside revenues and profits, has the potential to deliver more sustainable outcomes for investors over time."
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As part of the changes, the fund will join Fidelity's Sustainable Fund Family, which applies ESG-related exclusions and screens to ensure that at least 70% of the fund's portfolio will be invested in companies which maintain strong sustainable characteristics.
The fund will also have the ability to hold up to 30% in lower ESG-rated stocks, so long as the managers believe there is an improving ESG outlook.
Lancaster added Fidelity has plans to increase the Sustainable Family of Funds offering with "increased thematic and regional funds across asset classes".
