Fidelity brings second active ETF to market in Australia

Fidelity brings second active ETF to market in Australia

Fidelity International has rolled out a second active exchange traded fund in Australia in response to increasing local investor demand for active ETFs.

The $706bn asset manager originally launched its global demographics strategy as a managed fund back in 2012. The ETF version of the fund has now been listed on Australia’s stock exchange under the ticker FDEM.

The actively managed ETF will hold between 50 and 70 securities, and will aim to beat the MSCI All Country World Index NR benchmark over the medium to long term, with a suggested investment timeframe of seven years.

Run by UK-headquartered portfolio managers Aneta Wynimko, Alex Gold and Oliver Hextall, the vehicle invests in companies that Fidelity expects to “grow and benefit from changing demographic trends”.

Alva Devoy, managing director at Fidelity’s Australian arm, said the asset manager was launching the strategy as a listed vehicle “because Australian investors are becoming increasingly interested in actively managed ETFs”.

She said local demand for active ETFs was robust because the products were “simple to access”, via the ASX.

Anthony Doyle, cross-asset investment specialist at Fidelity, said demographic trends around the world remained largely predictable despite the global uncertainty surrounding the political and macroeconomic developments of the past two years.

“When we look at demographic