Lisbon, 11th April 2023: Fidelity International (Fidelity) today announces the launch of the Fidelity Global Government Bond Climate Aware UCITS ETF (the ‘Fund’), further expanding its climate-focused ETF investment solutions.
The Fidelity Global Government Bond Climate Aware UCITS ETF 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. The Fund commenced trading on Monday 20th March on the London Stock Exchange, Deutsche Börse Xetra, SIX Swiss Exchange and Borsa Italiana.
Nick King, Head of ETFs at Fidelity International, commented: “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.”
Note to Editor:
| Share class | Index | ISIN | Ongoing ChargesFigure (OCF) |
| Fidelity Global Government Bond Climate Aware UCITSETF (Inc USD (unhedged) | The Solactive Paris Aware GlobalGovernment USD Index | IE000IF0HTJ9 | 0.20% |
Further details on 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.
The Index includes only bonds issued by countries rated investment grade by recognised rating agencies. The Index is weighted by reference to the carbon emission targets described above, as well as other factors such as bond issuance levels, yield levels and foreign exchange rates. The Index rebalances on a monthly basis. Further details regarding the Index (including its constituents) are available on the index provider’s website at https://www.solactive.com/indices
Important information:
This document is classified as a Marketing Communication as defined by the Guidelines on marketing communications under the Regulation on cross-border distribution of funds (ESMA34- 45-1272).
The value of investments and the income from them can go down as well as up so you may get back less than you invest.
Please refer to the Prospectus and KIID of the fund before making any final investment decisions. The investment which is promoted concerns the acquisition of units or shares in a fund and not in a given underlying asset owned by the fund.
This fund invests in overseas markets and so the value of investments can be affected by changes in currency exchange rates.
This fund invests in emerging markets which can be more volatile than other more developed markets.
This fund uses financial derivative instruments for investment purposes, which may expose the fund to a higher degree of risk and can cause investments to experience larger than average price fluctuations.
There is a risk that the issuers of bonds may not be able to repay the money they have borrowed or make interest payments. When interest rates rise, bonds may fall in value. Rising interest rates may cause the value of your investment to fall.
The Investment Manager’s focus on securities of issuers which maintain favourable ESG characteristics or that are sustainable investments may affect the fund’s investment performance favourably or unfavourably in comparison to similar funds without such focus. When referring to sustainability – related aspects of the promoted fund, the decision to invest should take into account all characteristics or objectives of the promoted fund as detailed in the Prospectus.Information on sustainability-related aspects is provided pursuant to SFDR at https://www.fidelity.lu/sfdr-entity-disclosures.
There is no guarantee that the investment objective of any Index Tracking Sub-Fund (passively managed) will be achieved. The performance of the sub-fund may not match the performance of the index it tracks due to factors including, but not limited to, the investment strategy used, fees and expenses and taxes.
Funds are subject to charges and expenses. Charges and expenses reduce the potential growth of your investment. This means you could get back less than you paid in. The costs may increase or decrease as a result of currency and exchange rate fluctuations.
Investors should note that the views expressed may no longer be current and may have already been acted upon.
