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

Issuer: Fidelity International

Asset Class: Fixed Income

TER: 40bps

Trading Currency: USD

Pays Income: False

Listing Date: 20 Jan 2023

Ticker: FGHU

ISIN: IE000B8VAQZ8

This actively managed fund offers a distinct approach to the global high-yield bond market, targeting investors who prioritize both financial returns and climate-conscious principles. The strategy focuses on sub-investment-grade corporate debt from issuers worldwide, but unlike traditional index-tracking funds, it is not constrained by a benchmark. This provides the portfolio managers with the flexibility to dynamically select securities based on their proprietary research, aiming to identify the most compelling opportunities for income and capital growth across the high-yield spectrum.

A core pillar of the investment process is its robust sustainability framework, which aligns with the stringent criteria of the EU Paris-Aligned Benchmark (PAB) regulation. The fund actively seeks to reduce its carbon footprint by excluding companies involved in specific controversial activities and tilting the portfolio towards issuers demonstrating stronger environmental, social, and governance (ESG) characteristics. This involves a systematic process of screening and selection designed to support the transition to a lower-carbon economy, consistent with the long-term goals of the Paris Agreement. The multifactor model employed also considers fundamental factors like value, quality, and momentum to enhance security selection.

By combining active management with a clear climate objective, the fund is designed for investors seeking to generate attractive yields from the high-yield asset class while making a measurable positive impact. It represents a sophisticated tool for those looking to build a resilient fixed-income portfolio that reflects a strong commitment to sustainable investing and addresses the risks and opportunities presented by climate change.