The exchange-traded fund market (Exchange Traded Funds, Actively managed ETFs continue to experience strong growth. As a result, assets managed by these products have increased by 50% so far this year and now total almost €50 billion in the region. In response to growing demand, Fidelity International (Fidelity) announced on Tuesday that it has expanded its range of sustainable ETFs with active management through the launch of two bond ETFs. Visit the specialized elEconomista ESG portal.
He Fidelity UCITS II ICAV – Fidelity Sustainable EUR High Yield Bond Paris-Aligned Multifactor UCITS ETF and the Fidelity UCITS II ICAV – Fidelity Sustainable USD High Yield Paris-Aligned Multifactor UCITS ETF They began trading this Tuesday on the Xetra and will soon be admitted to trading on the London Stock Exchange, SIX and Borsa Italiana. These funds supplement the Fidelity UCITS II ICAV – Fidelity Sustainable Global High Yield Bond Paris-Aligned Multifactor UCITS ETFlaunched in November 2022 and which already has assets of $800 million. Actively managed ETFs already approaching $1 trillion in asset volume
Supported by Fidelity’s quantitative, fundamental and sustainability analysis, these funds invest in a portfolio consisting primarily of high yielding, lower credit quality corporate debt securities from issuers around the world.
Its objective is to achieve income and capital appreciation and, at the same time, converge with the long-term objectives of the Paris Agreement on global warming limit exposure to carbon emissions in their respective portfolios. The Funds are structured and adjusted using Fidelity’s proprietary multi-factor model, which leverages the firm’s wealth of quantitative analysis and fixed income data. The model seeks to generate alpha systematically throughout the market cycle, while preserving the essential characteristics of the asset class. It is designed to achieve superior returns by investing based on quantitative signals (factors) aimed at identifying exceptional issuers and applying strict considerations regarding transaction costs.
On the occasion of the launch, Alastair Baillie Strong, Head of ETFs at Fidelity Internationalsaid: “By leveraging Fidelity’s extensive research resources and internally developed investment knowledge, we are able to make available to our clients a range of actively managed ETFs that are positioned unique and offer enhanced exposures to products that simply track indices, all at an attractive price. “Since their launch in 2021, our sustainable ETFs have enjoyed high customer acceptance and have accumulated more than $5.7 billion in assets under management across 13 strategies. Both funds are currently price covered. section 9 of the Sustainability Financial Disclosure Regulation (SFDR), which implies that they have a specific sustainability objective. Managers are calling on the EU for clearer labels for ESG investment funds.
