Fidelity International has announced its latest venture into climate-focused financial solutions with the introduction of two new fixed-income ETFs.
According to ESG Today, with the growing demand for sustainable financial options and a commitment to align with the long-term goals of the Paris Agreement, Fidelity’s new offerings come at a time when the global community is making strides to reduce greenhouse gas emissions.
Founded to provide top-notch investment management services, Fidelity International has an expansive portfolio that includes a diverse range of financial solutions. Over the years, they’ve consistently strived to cater to the evolving needs of their clients and the global finance landscape.
The newly launched ETFs, named Fidelity Sustainable EUR Corporate Bond Paris Aligned Multifactor UCITS ETF (FUIG) and Fidelity Sustainable USD Corporate Bond Paris Aligned Multifactor UCITS ETF (FEIS), are a part of the firm’s sustainable corporate bond fund lineup. These ETFs are categorised under Article 9 as per the EU’s Sustainable Finance Disclosure Regulation (SFDR), signifying a primary focus on sustainable investment objectives.
These new funds have been benchmarked against the Solactive Euro Corporate IG PAB Index and the Solactive USD Corporate IG PAB Index. They offer exposure to investment grade corporate debt portfolios aligned with the 1.5°C scenario until 2050. Furthermore, to ensure strict adherence to sustainability, the ETFs exclude businesses that derive significant revenues from fossil fuel activities, tobacco production, controversial weaponry, and those violating the UN Global Compact.
Fidelity is no stranger to sustainable offerings. Earlier in March, they introduced the Fidelity Global Government Bond Climate Aware UCITS ETF, and in November 2022, they unveiled two more climate-centric Solactive-benchmarked solutions.
Fidelity International head of ETF distribution, Europe, Stefan Kuhn said, “Since its launch in 2021, our Sustainable Global Corporate Bond Multifactor UCITS ETF has proved popular with clients, utilising Fidelity’s active research platform and our sustainability expertise to identify best-in-class corporate bonds at an attractive price point. We are pleased to expand on this to include regional variations of the successful strategy, in line with client demand.”
Solactive chief markets officer, Timo Pfeiffer, expressed, “Climate change represents one of the most significant challenges of our era, leading to a growing need for climate-conscious investment strategies. As we work towards a more sustainable planet, Solactive is dedicated to the continued development of investment solutions that cater to that. We are delighted that Fidelity shares this commitment and has selected Solactive as the index provider for their latest product. Our track record in active investments spans several years, and we very pleased to be now consolidating it also within the fixed-income arena.”
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