Fidelity Global Government Bond Climate Aware UCITS ETF Inc

Issuer: Fidelity International

Asset Class: Fixed Income

TER: 20bps

Trading Currency: GBP

Pays Income: False

Listing Date: 20 Mar 2023

Ticker: FGGP

ISIN: IE000IF0HTJ9

This actively managed fund aims to generate income and capital growth by investing in a global portfolio of government bonds, while incorporating a distinct climate-aware mandate. The strategy focuses on debt securities issued by both developed and emerging market governments, applying a rigorous screening process that excludes countries with weak climate governance. Furthermore, it systematically tilts the portfolio towards nations that demonstrate strong preparedness for the transition to a low-carbon economy. This dual approach offers a compelling proposition for investors seeking the relative stability of sovereign debt while aligning their capital with positive long-term climate objectives.

The investment process is underpinned by a proprietary sovereign climate rating framework, which evaluates countries on a wide array of factors including physical climate risks, transition policies, and social implications. By leveraging this forward-looking, in-house research, the fund seeks to identify sovereign issuers that are effectively managing climate-related challenges and are well-positioned to navigate the global energy transition. The active management overlay provides the flexibility to adjust country allocations, duration, and yield curve positioning based on the team's evolving macroeconomic views, aiming to optimize risk-adjusted returns within the defined climate-focused universe.

This product is designed for investors looking for a core fixed-income holding that provides global diversification alongside a clear commitment to sustainability. It serves as a valuable tool for building a resilient portfolio, offering the traditional defensive characteristics of government bonds while proactively addressing the long-term financial risks posed by climate change. By investing in the sovereign debt of countries leading on climate action, the fund provides a means to generate potential returns and a regular income stream from a responsible and forward-thinking investment strategy.