Fidelity International lists three new ETFs

By ETFWorld.co.uk

Nick King Head of ETFs at Fidelity International

Fidelity Sustainable Global High Yield Bond Paris-Aligned Multifactor UCITS ETF ACC-GBP (hedged)

The fund aims to align with the Paris Agreement long-term global warming objectives by restricting the carbon emission exposure of its portfolio and to achieve income and capital growth

◼ Investment Policy: The fund invests in a portfolio primarily made up of high-yielding, sub-investment grade corporate debt securities of issuers globally.

◼ The fund is aligned with the Paris Agreement’s climate targets on greenhouse gas emission reduction.

◼ The fund may use derivatives for efficient portfolio management and currency hedging purposes.

◼ Investment Process: The fund is actively managed and references the Solactive Paris Aligned Global Corporate High Yield USD Index as part of its investment process. The reduction of carbon emission objective of the fund will be aligned with the Benchmark.

◼ The fund uses a combination of quantitative, fundamental and sustainability research to select securities which are: (a) weighted with a view to maximising portfolio return relative to the Benchmark; (b) aligned with the carbon emission performance of the Benchmark; and (c) sustainable investments.

◼ In addition, the fund adheres to the Fidelity Sustainable Family of Funds standards. For more information, see the “Fidelity Sustainable Family of Funds” section of the Prospectus.

◼ Benchmark: Solactive Paris Aligned Global Corporate High Yield USD Index, an index that takes into account ESG characteristics. Used for: alignment of reduction of carbon emission objective of the fund.

◼ The Benchmark tracks the performance of high yield, sub-investment grade corporate debt securities publicly issued globally while at the same time aiming to align with the Paris Agreement’s climate targets on greenhouse gas emission reduction. As a result of complying with these targets and the minimum technical requirements for EU Paris-aligned benchmarks, the Benchmark will be labelled as an EU Paris Aligned Benchmark.

◼ In addition, the Benchmark excludes issuers based on their involvement in activities with significant externalities (tobacco, fossil fuels, controversial weapons etc.), breaches of international norms and with a significant negative impact on certain sustainable development goals.

◼ The governance practices of issuers are assessed as part of the Benchmark construction process with the exclusion of companies with verified failure to respect established norms.