By Jose Luis Palmer from RankiaPro Europe
Fidelity International has introduced two new Sicav strategies dedicated to sustainable social and corporate bonds, aligning with environmental and social objectives.
Leading the charge, Kristian Atkinson will manage the Sustainable Global Corporate Bond fund, while Shamil Gohil will oversee the Sustainable Social Bond fund. Both funds are classified as Article 9 under the Sustainable Finance Disclosure Regulation (SFDR), ensuring 100% of fund investments are in sustainable endeavors.
To meet Fidelity’s sustainable investment criteria, issuers must derive at least 50% of their revenues from activities contributing to environmental or social objectives.
According to the United Nations Conference on Trade and Development, there exists a $4tn annual funding gap to achieve the UN Sustainable Development Goals (SDGs), predominantly focusing on social objectives. Fidelity perceives this as an investment opportunity.
The Sustainable Global Corporate Bond fund
The Sustainable Global Corporate Bond fund aims for capital growth and income through sustainable investments, with a minimum of 70% of assets in investment-grade corporate debt securities worldwide. These securities align with one or more UN SDGs, offering diversification beyond thematic funds.
The Sustainable Social Bond fund
Similarly, the Sustainable Social Bond fund targets financial growth while addressing social objectives. It invests primarily in investment-grade corporate debt securities worldwide, with at least 80% of the portfolio dedicated to socially oriented bonds.
Fidelity’s commitment to developing thematic fixed income solutions encompasses climate change, biodiversity, water, and social issues.
With $776.2bn in total assets as of December 31, 2023, Fidelity International reinforces its dedication to sustainable investment solutions, addressing both environmental and social challenges.
Related Article: 2024: A Milestone Year for Sustainability as Green Bonds Lead the Charge Towards $1 Trillion
