Fidelity Sustainable Global High Yield Bond Paris-Aligned Multifactor UCITS ETF Inc GBP-Hedged
| Issuer: Fidelity International |
| Asset Class: Fixed Income |
| TER: 40bps |
| Trading Currency: GBP |
| Pays Income: False |
| Listing Date: 14 Nov 2022 |
| Ticker: FHYG |
| ISIN: IE000C17QP01 |
This actively managed fund offers exposure to the global high-yield corporate bond market with a distinct focus on sustainability. The core objective is to deliver both income and capital growth by investing in below-investment-grade debt securities from issuers around the world. Crucially, the strategy is constructed to align with the Paris Agreement's climate objectives. This involves a clear trajectory for decarbonization and a significant reduction in the portfolio's carbon footprint compared to the broader high-yield market. It is specifically designed for investors who are seeking the enhanced yield potential of high-yield bonds but wish to integrate strong climate-aware principles into their fixed-income allocation.
The investment process is driven by a proprietary multifactor model that systematically analyzes and selects bonds based on characteristics shown to be drivers of return, such as value and quality. This quantitative approach is overlaid with rigorous ESG screening, excluding companies involved in controversial activities and favoring those with stronger sustainability profiles. As an actively managed product, the portfolio managers have the flexibility to adjust holdings based on their analysis of credit risk, macroeconomic trends, and market conditions. This approach aims to navigate the complexities of the high-yield space while adhering to its strict Paris-aligned mandate.
For a portfolio, this product can serve as a compelling satellite or even a core holding within a fixed-income strategy, particularly for sustainability-focused investors. It provides diversification across geographies and industries while offering a potentially higher stream of income than government or investment-grade corporate bonds. The fund's unique combination of active management, multifactor investing, and a Paris-aligned framework offers a modern solution for accessing the global high-yield market in a responsible and forward-looking manner.
