Fidelity International unveils government bond fund focused on decarbonisation


Fidelity International, an investment management company, has launched the Fidelity Global Government Bond Climate Aware UCITS ETF.  

ESG Today claims the new ETF tracks the performance of the Solactive Paris Aware Global Government USD index, which includes government bonds issued by investment grade countries while following a decarbonisation trajectory.

Weightings are influenced by decarbonisation objectives alongside other factors including bond issuance levels, yield levels, and foreign exchange rates.

According to Solactive, the index aims to demonstrate a minimum 14% lower carbon intensity compared to its investable universe, in addition to an annual 7% decarbonization goal.

Solactive chief markets officer Timo Pfeiffer said, “Climate change is one of the biggest challenges of our time, which translates into a surge in demand for climate investment strategies. As part of the overall path to a greener planet, Solactive is committed to increasingly develop more sustainable investment solutions and we are pleased that Fidelity is committed to the same goal and chose Solactive as the index provider for this new product.”

Nick King – head of ETFs at Fidelity International – added, “Sustainable investing is a key priority for many of our clients and often they are focused on managing climate change through their investment allocations.

“This new ETF provides investors with a highly diversified global government bond exposure aligned to climate objectives. This expands our existing range of climate-focused fixed income ETFs, providing innovative, cost-effective building blocks for asset allocation.”

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