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.
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