Fidelity Sustainable EUR Corporate Bond Paris Aligned Multifactor UCITS ETF GBP Hedged Acc

Issuer: Fidelity International

Asset Class: Fixed Income

TER: 25bps

Trading Currency: GBP

Pays Income: False

Listing Date: 23 Oct 2023

Ticker: FEIP

ISIN: IE00048UULY2

This actively managed fund offers exposure to a diversified portfolio of Euro-denominated, investment-grade corporate bonds, while adhering to stringent climate-focused criteria. The core strategy is to deliver returns that outperform the Solactive Paris-Aligned Euro Corporate IG Index by employing a research-driven, discretionary investment process. This approach allows the portfolio managers to selectively identify securities that they believe offer superior risk-adjusted return potential, within a universe of issuers committed to decarbonization, providing a blend of active management alpha potential and a strong environmental, social, and governance (ESG) overlay.

The investment strategy is underpinned by a proprietary multifactor model that systematically evaluates bonds based on characteristics such as value, quality, and momentum. This quantitative framework is fully integrated with a rigorous ESG screening process aligned with the Paris Agreement's goals. The fund is specifically constructed to have a significantly lower carbon intensity than the broader corporate bond market and follows a clear decarbonization trajectory. It actively avoids companies with significant exposure to fossil fuels and other controversial sectors, while favoring issuers demonstrating strong ESG credentials and a clear commitment to transitioning their business models towards a low-carbon future.

This product is designed for investors seeking a core fixed-income allocation that addresses climate change risk and contributes to financing the green transition. It provides a means to align a portfolio with long-term sustainability goals without compromising on the pursuit of competitive investment returns. By combining active bond selection, a multifactor approach, and a robust Paris-Aligned framework, the fund presents a compelling option for those looking to enhance the ESG profile of their portfolio while gaining access to the European corporate credit market.