Personalized investment management

Investment management tailored to your priorities and preferences

Sustainable Personalized Portfolios

These portfolios seek investment results similar to our Total Return approach while prioritizing sustainable investments. This option is designed for investors who are looking for a way to pursue their financial goals while investing sustainably.



How does Fidelity define Sustainable Investing?


Fidelity considers sustainable investing to be the incorporation of financially material sustainability factors into the investment research and decision-making process. These sustainability factors can be classified in three categories: Environmental, Social and Governance.

Environmental
Consider how efficiently companies are at managing their environmental resources, as well as the risks and opportunities this usage may pose to their long-term success. Examples of environmental factors include toxic emissions and waste, water management and stress, and managing climate risks and opportunities


Social
Consider how companies are prioritizing the wellbeing of their employees, suppliers, and customers, as well as the communities in which they operate. Examples of social factors include data privacy and cyber security, product safety and quality, and workforce management.


Governance
Consider how effective companies are at managing oversight structure, strategy, operations and internal processes over the long term. Examples of governance factors include business ethics and fraud and corporate governance and oversight.

Fidelity considers sustainable investing to be the incorporation of financially material sustainability factors into the investment research and decision-making process. This graphic classifies the sustainability factors considered in a sustainable investing portfolio in three categories: environmental, social and governance. Examples of environmental factors include toxic emissions and waste, water management and stress, and managing climate risks and opportunities. Examples of social factors include data privacy and cyber security, product safety and quality, and workforce management. Examples of governance factors include business ethics and fraud and corporate governance and oversight.

FOR ILLUSTRATIVE PURPOSE ONLY.

  • How sustainable factors are considered relative to traditional fundamental factors

    An understanding of these sustainability factors can provide insight into a company’s potential future cash flows and long-term resiliency. They should be considered relative to the traditional fundamental factors that are reviewed when evaluating a company, such as:

    • Pricing power, which measures a company’s ability to raise prices without losing market share.
    • Industry structure, or the makeup of the industry in which a company operates.
    • Competitive positioning, which measures a company’s competitive edge relative to its peers within an industry.
    • Capital intensity, which looks at the amount of capital invested to achieve business success.
    • Bargaining power with suppliers, or the ability to negotiate lower costs.

What are Sustainable Personalized Portfolios?


Sustainable Personalized Portfolios are professionally managed multi-asset class portfolios that seek to maximize returns for a given level of risk, while investing primarily in sustainable funds. As is the case with our Total Return approach, your portfolio will contain a mix of stocks, bonds and short-term investments based on your time horizon and comfort with risk.

Investment universes

Like our traditional Total Return approach, you'll have three investment universe options. These will help guide how the investments in your account will be selected.*

Sustainable Fidelity Focused
We'll prioritize sustainable investments managed by Fidelity, when they're available and we believe they're appropriate for your goal and financial situation.

Sustainable Blended
We have the flexibility to choose from a wide range of investments managed by either Fidelity or non-Fidelity companies, focusing on sustainable investments when they're available and we believe they're appropriate for your goal and financial situation.

Sustainable Index Focused
We'll prioritize sustainable investments that are designed to track market indexes, when they’re available and we believe they're appropriate for your goal and financial situation.

*Depending on the investment approach and universe selected, a significant percentage of a Program Account could be invested in funds offered by Strategic Advisers' affiliates.

How we choose funds to invest in for you?

We've developed a multi-dimensional approach designed to evaluate and identify funds that we believe have integrated sustainability practices into their research and decision-making processes.


When evaluating fund managers, here’s some of what we look for:



Integration
Commitment, capability, and materiality to integrating sustainability into their investment process.



Engagement
Process for engaging with company management on sustainability issues.



Sustainable measures
Monitor a variety of measures associated with sustainable investing.

FOR ILLUSTRATIVE PURPOSE ONLY.

  • Examples of what we look for in fund managers

    Integration

    • Team structures include resources dedicated to sustainable investing.
    • Evidence of a consistent approach across their investment team.

    Engagement

    • A clear strategy for engaging the management of companies in their portfolios on sustainability issues (for example, fund dialogue with company management on topics such as plans to increase diversity and representation in leadership positions or implementing clean energy solutions in their distribution centers).
    • Proxy voting record generally supportive of material sustainability-oriented proposals.

    Sustainable measures

    • Sustainability ratings1 more favorable than the respective sub-asset class index that does not consider sustainable factors (such as lower carbon emissions relative to the respective sub-asset class index that does not consider sustainable factors).
    • Limited exposure to controversial companies or themes (for example, the fund does not include exposure to for-profit prisons).

    For illustrative purposes only. Examples are not representative of a specific fund or fund manager.

Example of a sustainable measure


Fund managers monitor a variety of measures associated with sustainable investments. Carbon emissions is one example of a measure they might monitor.


The Sustainable Personalized Portfolios Blended Growth with Income portfolio2 invests in companies that have 34% lower carbon intensity3 than a blended index.4 For a hypothetical $250,000 investment, this improvement is comparable to:


The carbon emitted from 5,526 miles driven by an average gasoline-powered passenger vehicle. The carbon emitted from 175,437 smartphones charged. The carbon absorbed by 2.2 acres of U.S. forests in one year. The carbon avoided through 184 trash bags of waste recycled instead of landfilled.

See footnote 5 for more information.

For illustrative purposes only. Examples are not representative of a specific fund or fund manager. It is important to note that Strategic Advisers is not actively monitoring sustainable measures of underlying fund holdings. See the footnotes below for more information.

More information