Fidelity Sustainable USD Corporate Bond Paris Aligned Multifactor UCITS ETF Inc

Issuer: Fidelity International

Asset Class: Fixed Income

TER: 20bps

Trading Currency: USD

Pays Income: False

Listing Date: 23 Oct 2023

Ticker: FUIG

ISIN: IE000JJQ6248

This actively managed fund provides core exposure to the US dollar-denominated, investment-grade corporate bond market through a sophisticated, research-enhanced framework. The strategy goes beyond traditional indexing by combining the portfolio manager's fundamental insights with a systematic, factor-based approach. This involves screening for bonds with attractive characteristics related to value, quality, and sustainable momentum, aiming to identify securities that offer a higher potential for risk-adjusted returns compared to the broader market. The objective is to deliver both consistent income and capital growth by constructing a diversified portfolio of high-quality corporate debt.

A distinguishing feature of this investment vehicle is its strong commitment to sustainability, specifically aligning with the objectives of the Paris Agreement on climate change. The portfolio is constructed to have a significantly lower carbon footprint and a decarbonization trajectory consistent with limiting global warming. This is achieved by applying stringent environmental, social, and governance (ESG) criteria, which involves excluding companies engaged in controversial sectors while overweighting those that demonstrate superior sustainability profiles. This dual focus on financial outperformance and tangible climate impact makes the fund suitable for investors seeking to de-risk their portfolios from climate-related threats and contribute to a low-carbon economy.

By investing in this product, individuals can gain access to a professionally managed, forward-looking fixed-income solution. It offers the potential for stable, semi-annual income distributions and is designed to serve as a core holding within a diversified portfolio. The combination of active management, factor-based security selection, and a rigorous Paris-Aligned sustainability mandate provides a comprehensive strategy for navigating the complexities of modern corporate credit markets while aligning investments with long-term environmental goals.