Fonditalia Ethical Investment

The fund is a UCITs-compliant (Undertakings for Collective Investment in Transferable Securities, a set of European Union Directives that aim to allow collective investment schemes to operate freely throughout the EU on the basis of a single authorisation from one member state) vehicle distributed through the network of Fideuram private bankers to Italian retail investors. Fonditalia Ethical Investment invests in a broadly diversified fixed income portfolio including thematic bonds issued by development finance institutions, microfinance and fair trade funds, social bonds, and ethically screened government bonds. MainStreet Partners advises Fideuram Asset Management on the screening, due diligence and selection of the targeted fixed income securities and impact funds.

Financial description

The Sub-Fund, expressed in EURO, aims at generating a positive total return through a combination of both income and capital growth with an investment policy based on ethical principles in the selection of the instruments. The Sub-Fund invests in: 1)Bonds issued by national and supranational entities, selected using positive and negative social screens, as well as a "best in class" approach based on rigorous social, environmental or governance guidelines; 2)Shares/units of microfinance funds, fair trade funds and similar instruments targeting a combination of financial returns and social or environmental good, up to a maximum of 30% of the fund; 3) Other government bonds with an investment grade rating. The Sub-Fund may also invest in corporate debt securities targeting a combination of financial returns and social or environmental good. The Sub-Fund may invest in emerging markets, which in investment terms are those economies that are still developing. The Sub-Fund could be exposed to unhedged currencies different from Euro. Moreover, the Sub-Fund may use financial derivative instruments not only for the purpose of risk hedging and efficient management but also for investment purposes. This Sub-Fund has no benchmark.