Fidelity Sustainable Global High Yield Bond Paris-Aligned Multifactor UCITS ETF Inc

Issuer: Fidelity International

Asset Class: Fixed Income

TER: 35bps

Trading Currency: USD

Pays Income: False

Listing Date: 14 Nov 2022

Ticker: FGHY

ISIN: IE0006OIQXE9

This actively managed fund offers exposure to the global high-yield corporate bond market, combining the search for attractive income with a strong focus on sustainability. The strategy targets sub-investment-grade debt issued by companies worldwide, which typically offers higher yields than government or investment-grade corporate bonds to compensate for increased credit risk. By investing globally, the fund diversifies across different economic cycles and regions, aiming to identify the most compelling opportunities in the high-yield space. The active management allows the portfolio managers to dynamically adjust holdings based on their analysis of individual issuers, sectors, and macroeconomic trends.

A key feature of this product is its alignment with the climate objectives of the Paris Agreement. The investment process incorporates specific environmental, social, and governance (ESG) criteria, screening out companies involved in controversial activities and favouring those with better sustainability profiles. It follows a "Paris-Aligned Benchmark" (PAB) framework, which means the portfolio is constructed to have a significantly lower carbon footprint than the broader market and is on a clear decarbonization trajectory. This makes it suitable for investors seeking to generate income from the high-yield market while simultaneously supporting the transition to a lower-carbon economy. The fund's multi-factor approach further refines security selection, seeking to enhance risk-adjusted returns over the long term.