iShares Global Aggregate Bond ESG UCITS ETF GBP Hedged (Acc)

Issuer: iShares

Asset Class: Fixed Income

TER: 10bps

Trading Currency: GBP

Pays Income: False

Listing Date: 07 Dec 2021

Ticker: AEGG

ISIN: IE000ZXYID24

This fund provides exposure to the global investment-grade bond market, encompassing both government and corporate debt from developed and emerging economies. A key feature is its adherence to strict Environmental, Social, and Governance (ESG) and Socially Responsible Investing (SRI) principles. The portfolio is constructed by screening out issuers involved in controversial activities such as weapons, thermal coal, tobacco, and those that violate the UN Global Compact principles. This dual focus offers investors a way to achieve broad fixed-income diversification while aligning their capital with sustainability values.

The fund is suitable for investors seeking a core holding for the fixed-income portion of their portfolio. Its global diversification helps to mitigate concentration risk from any single country or region. Furthermore, this particular share class is currency-hedged, aiming to reduce the impact of exchange rate fluctuations between the portfolio's underlying currencies and the British pound. This can lead to a more stable and predictable return profile, which is often a primary goal for bond investors. As an accumulating fund, any income generated is automatically reinvested to promote compounding growth over the long term, which can be tax-efficient for investors not requiring regular income.

By tracking its benchmark through a physical replication method, the fund holds the actual bonds, providing direct exposure to the assets. This combination of global diversification, ESG screening, currency hedging, and an accumulating structure makes it a comprehensive solution for socially conscious, long-term investors looking for a core fixed-income allocation.