Fidelity's latest investment vehicle aims to generate a healthy return on investments by pouring money into firms with high ESG ratings.

Fidelity International has launched a new environmental, social and governance fund that seeks to generate ethical returns on investments. 

The FIRST ESG All Country World Fund aims to achieve long-term capital growth by investing in companies that have strong ESG credentials. 

Launching with assets under management of just $80 million, the fund uses bottom-up research methods skewed towards companies with high ESG ratings. 

It is screened to exclude companies that derive a “significant portion” of business revenue from activities that typically have negative ESG outcomes, the firm said. These firms include those that manufacture and/or distribute alcohol, weapons, tobacco, gambling and adult entertainment. 

Investments are not constrained by company size, sector or geography, Fidelity International said.

The fund is managed by Matt Jones and Hiten Savani, who collectively have more than 32 years of investment experience.