Fidelity adds sustainable funds to 529 business

The company is the third-biggest player in the college savings market

Fidelity has added sustainable investment options within its 529 college-savings plan business, the company announced this week.

It has launched versions of its Sustainable Multi-Asset Portfolio within a total of five plans in Connecticut, New Hampshire and Massachusetts, the company said in a statement.

The firm is the third-largest 529 college savings plan investment manager, behind Vanguard and Capital Group, according to a report from Morningstar. Fidelity manages eight plans and has about 9% of the market share.

The additions of the investment products are another indication of the expansion of sustainable investing in the college savings plan market. Two years ago, about 20 plans included at least one investment option that prominently considered ESG factors, according to a report at the time by AKF Consulting.

The Fidelity Advisor 529 Sustainable Multi-Asset Portfolio, which launched July 27, is managed by Brett Sumsion, Andrew Dierdorf and Bruno Weinberg Crocco. That fund has net fees of 137 basis points. Information about the fund’s holdings was not yet available.