Fidelity International is launching the Fidelity Global Government Bond Climate Aware UCITS ETF, further expanding its climate-focused ETF investment solutions.
The fund is the third in a series of climate focused ETF launches, alongside the Fidelity Sustainable Global Corporate Bond Paris-Aligned Multifactor UCITS ETF and the Fidelity Sustainable Global High Yield Bond Paris-Aligned Multifactor UCITS ETF.
The new fund is a passively managed ETF which tracks the Solactive Paris Aware Global Government USD Index (the ‘Index’). The Index is designed to reflect the performance of global local currency government bonds, issued by investment grade countries, while at the same time aiming to exhibit a level of carbon emission intensity 14% lower than the investible universe at launch and subsequently to aim for a further year-on-year decarbonisation target, currently at an average rate of 7% per annum. This in turn aims to deliver a significant reduction in carbon footprint of the portfolio compared with similar products tracking non-Paris-aware indices.
The fund is categorised article 8 of the Sustainable Finance Disclosure Regulation (SFDR) and a minimum of 50% of the fund’s assets will be invested in securities of issuers with favourable ESG characteristics.
