Key Impact Points:
- First of Its Kind: Fidelity introduces the world’s first blue transition bond fund, focused on improving ocean and freshwater health.
- Targeting SDGs: The fund addresses underfunded UN Sustainable Development Goals (SDGs), including “Life Below Water” and “Clean Water and Sanitation.”
- Holistic Investment Approach: The fund supports projects and companies aligned with the blue transition, aiming for attractive risk-adjusted returns while fostering sustainability.
Fidelity International has launched the Fidelity Funds 2 – Blue Transition Bond Fund, a pioneering fixed income fund designed to support the transition to healthier oceans and freshwater ecosystems. The fund also aims to achieve long-term capital growth.
A Focus on Underfunded SDGs
The fund is the first globally to focus on blue transition bonds, which are aligned with ocean and freshwater-related UN Sustainable Development Goals (SDGs) like “Life Below Water” and “Clean Water and Sanitation,” both of which are currently underfunded.
Kris Atkinson, Fixed Income Portfolio Manager at Fidelity, highlighted the bond market’s key role:
“The bond market is uniquely positioned to help support the blue transition, given its size and greater number of issuers across both public and private entities.”
Supporting the Blue Transition
The Blue Transition Bond Fund will invest in bonds from issuers that contribute to ocean and freshwater sustainability goals, including financing projects through blue bonds. These investments target water-related risks, opportunities, and solutions to the impact of climate change on aquatic ecosystems.
Atkinson emphasized that while blue bonds are a significant focus, a holistic approach is required:
“Investors should consider how a company operates, the products and services it offers, and how these align to the blue transition.”
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Managing the Fund
The fund is co-managed by Kris Atkinson and Shamil Gohil, who will guide investments in alignment with ocean and freshwater sustainability objectives.
Fidelity’s launch of this fund is part of its broader commitment to developing thematic fixed income solutions that address critical global issues, including climate change, biodiversity, water management, and other SDGs.
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With its first-ever blue transition bond fund, Fidelity International strengthens its role in tackling water-related sustainability challenges, providing investors with an innovative opportunity to support essential environmental goals while seeking financial returns.
