Fidelity International Enters Fixed Income ETF market with Two Sustainable Funds
Investment management firm Fidelity International announced today the launch of the Fidelity Sustainable Global Corporate Bond Multifactor UCITS ETF and the Fidelity Sustainable USD EM Bond UCITS ETF. The introduction of the two actively managed ESG-themed ETFs marks the first fixed income exchange traded funds to be offered by the company.
Fidelity Sustainable Global Corporate Bond Multifactor UCITS ETF aims to deliver a sustainable enhanced global corporate bond exposure where the security selection is driven by Fidelity’s proprietary multifactor credit model combined with integrated sustainability criteria. Fidelity Sustainable USD EM Bond UCITS ETF offers an active sustainable emerging market sovereign debt exposure through an enhanced weighting to countries most favoured by Fidelity’s Emerging Market debt factors heatmap, and an improved sustainable footprint based on Fidelity’s Sustainable proprietary ratings and external ESG ratings.
According to Fidelity International, each of the funds adopts a sustainable focused strategy under which a minimum of at least 70% will be invested in securities of companies that maintain sustainable characteristics, and are classified Article 8 under the EU Sustainable Finance Disclosure Regulation.
Nick King, Head of ETFs, Fidelity International, said:
“I am delighted to expand our ETF range with the launch of our first fixed income exchange traded products. Incorporating sustainable investing principles has become the key priority for many of our clients globally and we can now offer access to our proprietary research capabilities across asset classes in a transparent, cost effective structure.
“Combining the very best of Fidelity’s active research platform and sustainability expertise with best-in-class portfolio construction techniques, our Systematic Fixed Income can create low-cost portfolios tailored to our clients’ specific needs.
“I’m pleased we can now offer our ESG conscious investors truly differentiated, cost effective Sustainable ETF solutions across asset classes.”