Fidelity Advisor® Consumer Disctnry Fd has several promising attributes that may appeal to sustainability-focused investors.
The ESG risk of Fidelity Advisor® Consumer Disctnry Fd's holdings is comparable to its peers in the Consumer Goods & Services Sector Equity category, thus earning an average Morningstar Sustainability Rating of 3 globes. Funds in the same category rated 4 or 5 globes tend to hold securities less exposed to ESG risk. Unlike impact, which measures positive environmental and societal outcomes attributable to an investment, ESG risk reflects the degree to which investments could be affected by material ESG issues like climate change and inequalities.
One key area of strength for Fidelity Advisor® Consumer Disctnry Fd is its low Morningstar Portfolio Carbon Risk Score of 6.24 and very low fossil fuel exposure over the past 12 months, which earns it the Morningstar Low Carbon Designation. The fund is therefore well positioned to transition to a low-carbon economy. Currently, the fund's involvement in fossil fuels is negligible, and compares favorably with 0.35% for its average peer. No companies held by Fidelity Advisor® Consumer Disctnry Fd are recognized as being involved in controversies at a high or severe level. From bribery and corruption to workplace discrimination and environmental incidents, controversies can have significant financial repercussions, ranging from legal penalties to consumer boycotts. In addition, controversies can damage the reputation of both companies themselves and their shareholders.
One potential issue for a sustainability-focused investor is that Fidelity Advisor® Consumer Disctnry Fd doesn’t have an ESG-focused mandate. Funds with an ESG-focused mandate would have a higher probability to drive positive ESG outcomes.