Fidelity Global Corp Bond Research Enhanced PAB UCITS ETF Inc (GBP-Hedged)

Issuer: Fidelity International

Asset Class: Fixed Income

TER: 30bps

Trading Currency: GBP

Pays Income: False

Listing Date: 29 Mar 2021

Ticker: FSMP

ISIN: IE00BM9GRN41

This actively managed fund offers exposure to the global corporate bond market with a strong emphasis on climate-conscious investing. The strategy is specifically designed to align with the objectives of the Paris Agreement, focusing on a portfolio that exhibits a significantly lower carbon footprint than the broader market. It aims to achieve this by systematically reducing its exposure to greenhouse gas emissions and targeting a year-on-year decarbonization trajectory. The investment process incorporates a proprietary multifactor model that analyzes issuers based on value, quality, and sustainable characteristics, seeking to identify undervalued bonds from high-quality companies with strong ESG profiles.

The portfolio is constructed primarily from investment-grade corporate debt issued by companies in developed countries across the globe. By actively selecting securities, the investment manager seeks to generate attractive risk-adjusted returns through both income and capital appreciation. The fund also employs a rigorous exclusion policy, avoiding issuers involved in controversial weapons, thermal coal, and other activities deemed harmful, as well as those violating international norms like the UN Global Compact. This makes the fund suitable for investors looking to incorporate a robust sustainable and climate-focused fixed-income component into their portfolios, aiming for financial returns while contributing to the transition towards a low-carbon economy.