Fidelity targets emission-cutting nations with green sovereign bond ETF

Fidelity International will target government bond issuers that are limiting their carbon emission intensity with an ETF.

The Fidelity Global Government Bond Climate Aware Ucits ETF will track the Solactive Paris Aware Global Government USD index, which reflects the performance of global local currency government bonds issued by investment-grade countries.

The index is formulated to select underlying investments that have a carbon intensity that is 14% lower than the investible universe while aiming for a year-on-year decarbonisation target of 7% per annum.

Fidelity added that a minimum of 50% of the ETF would be invested in countries with “favourable ESG characteristics” and will be labelled Article 8 under the Sustainable Finance Disclosure Regulation.

The new fund will be listed on the London Stock Exchange, Deutsche Börse, SIX Swiss Exchange and the Borsa Italiana, with a total expense ratio of 0.2 per cent.

© 2023 funds europe

HAVE YOU READ?

THOUGHT LEADERSHIP

The tension between urgency and inaction will continue to influence sustainability discussions in 2024, as reflected in the trends report from S&P Global.
FIND OUT MORE
This white paper outlines key challenges impeding the growth of private markets and explores how technological innovation can provide solutions to unlock access to private market funds for a growing…
DOWNLOAD NOW

CLOUD DATA PLATFORMS

Luxembourg is one of the world’s premiere centres for cross-border distribution of investment funds. Read our special regional coverage, coinciding with the annual ALFI European Asset Management Conference.
READ MORE

PRIVATE MARKETS FUND ADMIN REPORT

Private_Markets_Fund_Admin_Report

LATEST PODCAST