Fund manager Fidelity International has launched a Paris agreement-aligned sustainable ETF, expanding its range of climate-focused investment solutions.
The Fidelity Sustainable Global High Yield Bond Paris-Aligned Multifactor UCITS ETF will target an average decarbonisation rate of 7% per year.
It will also target a level of emission intensity 50% lower than an equivalent global market Exchange Traded Fund.
The ETF is benchmarked against the Solactive Paris Aligned Global Corporate High Yield USD Index, and aims to provide long-term growth and income by investing in a diversified portfolio of high yield bonds. It will do this while remaining aligned with the objectives of the Paris agreement which aims to limit global warming to 1.5 degrees.
Companies subject to UNGC (UN Global Compact) controversies or in sectors such as weapons, thermal coal, oil sands, arctic oil and gas, or tobacco production are automatically excluded from the ETF.
Nick King, head of ETFs at Fidelity, said: “Reducing climate impact and supporting the Paris Agreement set out in 2015 are of the utmost importance for building a sustainable future, and the launch of this new ETF reaffirms Fidelity’s ambition in sustainable investing. We are convinced this new sustainable ETF will provide clients the opportunity to meet their financial goals and their climate objectives.”
The ETF uses Fidelity’s proprietary multi-factor model, analysing bonds using quantitative multi-factor signals to help identify issuers that outperform.
It is listed on the London Stock Exchange and Fidelity plans to also register it across Europe.
Fidelity’s ETF range now includes 18 solutions from income, sustainable equity, sustainable fixed income and thematic.
