ImpactAlpha, September 26 – Investors with Fidelity accounts have access to a small number of sustainable investment options—mostly index funds constructed around women’s leadership, clean energy and other themes. But the $7.4 trillion asset manager doesn’t have any way to help clients customize options for “mid-size” investors, like foundations or family offices, based on their values.
Fidelity is tapping Ethic to build products for its financial advisor clients, beginning with a subset of its largest partners. The partnership is about helping financial advisors more proactively offer sustainable options for their clients, Ethic’s Alex Laipple told ImpactAlpha.
“Investors go to their advisors for guidance, so this is more about educating advisors about solutions that can be built for their clients,” rather than offering everyone the same mutual funds, indexes or exchange traded funds, he said.
Fidelity was an investor in Ethic’s $13 million equity round in July.
Ethic handles $180 million in assets. Its 20 advisory firm partners each manage $200 million to several billion in client money.