Fidelity UCITS ICAV - Refinement Updates for the Sub-Funds
PR Newswire
LONDON, United Kingdom, August 28
This document is important and requires your immediate attention.If you are in doubt as to the action you should take, you should seek advice from your Fidelity Relationship Manager.
If you have sold or transferred any of your Shares in Fidelity UCITS ICAV (the "Fund"), please pass this document at once to the purchaser or transferee, or to the stockbroker, bank or other agent through whom the sale or transfer was effected for transmission to the purchaser or transferee as soon as possible.
Unless otherwise defined herein, all other capitalised terms used herein shall bear the same meaning as capitalised terms used in the currently effective prospectus of the Fund and supplements for the Sub-Funds (as defined below), as amended, supplemented or otherwise modified from time to time (the "Supplements" and together, the "Prospectus"). A copy of the Prospectus is available upon request during normal business hours at the registered office of the Fund.
Please note that the Central Bank of Ireland has not reviewed this notice. The Directors accept full responsibility for the accuracy of the information contained in this notice and confirm, having made all reasonable enquiries, that to the best of their knowledge and belief there are no other facts the omission of which would make any statement misleading.
28thAugust 2025
Refinement Updates for the Sub-Funds
Dear Shareholder,
Purpose
The Directors of the Fund are writing to notify you of certain refinements being made to the investment process and environmental, social and governance ("ESG") constraints of the Fund's Research Enhanced Equity ETF range, namely:
- Fidelity Global Equity Research Enhanced UCITS ETF;
- Fidelity US Equity Research Enhanced UCITS ETF;
- Fidelity Europe Equity Research Enhanced UCITS ETF;
- Fidelity Emerging Markets Equity Research Enhanced UCITS ETF;
- Fidelity Japan Equity Research Enhanced UCITS ETF; and
- Fidelity Pacific ex-Japan Equity Research Enhanced UCITS ETF,
(together, the "Sub-Funds").
- Investment Process
The Supplements will be updated to reflect enhancements regarding the selection of investments for the Sub-Funds, by providing that complementary quantitative signals (such as market valuation, financial position or market sentiment) may also be used as part of the security selection process.
An update is also being made to reflect that each Sub-Fund's portfolio will be optimised to provide exposure to the securities which the Investment Manager considers have the highest potential to outperform the applicable Benchmark for each Sub-Fund, whilst controlling active exposures against that Benchmark and ensuring diversification.
There is no change to the investment objective of the Sub-Funds and no change of the Benchmark of the Sub-Funds.
- ESG Constraints
The Supplements (including the pre-contractual disclosure documents) will be updated to:
- remove sustainable investment minimum thresholds; and
- cap the carbon intensity of a Sub-Fund's portfolio to that of the applicable Benchmark. This will replace the previous aim for a Sub-Fund's portfolio to be net zero by 2050 and to half emissions intensity (relative carbon footprint) by 2030, versus a base year of 2020, by assessing the carbon footprint and carbon intensity of investee companies.
The Sub Funds will continue to disclose according to Article 8 SFDR.
Rationale
At Fidelity, we continually evolve our approach to investing in line with the developing demands and the implementation of these refinements is evidence of that. In view of an increasingly differentiated investor demand on ESG, we believe it to be in the best interests of the Fund to evolve its investment process and simplify its ESG constraints while continuing to provide a similar implementation of Fidelity research.
These refinements are a natural evolution of the Research Enhanced Equity ETF range, designed to enhance implementation efficiency and consistency, whilst maintaining the robustness of our systematic process. The investment philosophy remains entirely bottom-up and rules-based, with decisions driven by our signals and risk controls.
Importantly, while some implementation parameters have been refined, the intended outcomes of the strategy remain unchanged, and the refinements should not be interpreted as a move toward greater activeness or discretionary risk-taking.
Fidelity remains fully committed to ESG integration as a core tenet of our long-term investment philosophy. These strategies continue to be classified as Article 8 under SFDR, with the same overarching objective of achieving a better ESG score than the Benchmark.
Effective Date of Changes
It is expected that revised versions of the Supplements reflecting the updates detailed above will be issued on or around 18 September 2025 (the "Effective Date") or such later date on which the revised Supplements are noted by the Central Bank of Ireland.
Next steps
No action is required from you as regards this update. If you do not want to remain in a Sub-Fund following the implementation of the proposed changes, you may redeem in the usual manner at any point prior to the Effective Date.
Should you have any questions relating to this matter, you should contact your professional advisor or your usual Fidelity Service Centre.
We would like to thank you for your investment, and we look forward to serving you in the future.
Yours sincerely
Director
For and on behalf of
Fidelity UCITS ICAV
