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The Fidelity Sustainable Global Corporate Bond Fund - USD Hedged is a collective investment scheme designed to meet the growing demand for sustainable investment options. With a focus on providing investors with diversified exposure to high-quality corporate debt securities, this fund integrates sustainable investing criteria at its core. Specializing in investments across a global landscape, it emphasizes companies that lead in environmental, social, and governance (ESG) considerations. By prioritizing sustainability, the fund aims to influence allocative decisions positively across various sectors, including renewable energy and ethical technology. Additionally, the strategic hedging of currency exposure minimizes the foreign exchange risks for investors holding positions in US dollars, making it a prudent choice for those looking to align their financial objectives with their values, while aiming for capital preservation and moderate growth in a responsible manner.
The Fidelity Sustainable Global Corporate Bond Fund focuses on investing in a diversified portfolio of corporate bonds issued by companies worldwide. By selecting bonds from corporations that exhibit leadership in sustainable practices, the fund offers investors the opportunity to participate in the credit markets while adhering to ESG criteria. This approach allows for the targeted investment in sectors that prioritize environmental, social, and governance aspects, contributing to the broader objective of sustainable global financial markets.
At the heart of the fund's investment strategy is the integration of sustainable investing criteria. This involves assessing potential investments not only based on financial performance and risk factors but also considering the positive environmental and social impact. By evaluating companies on their ESG performance, the fund aims to allocate capital toward businesses that are not only financially viable but also contribute positively to society and the environment. This strategic focus aligns with the growing investor preference for investments that reflect their ethical values and long-term sustainability goals.
To protect investors against the potential adverse effects of currency fluctuations, the Fidelity Sustainable Global Corporate Bond Fund employs a currency hedging strategy. This is particularly beneficial for investors holding positions in US dollars, as it minimizes foreign exchange risks associated with international investment. Currency hedging allows the fund to maintain a more stable value relative to the US dollar, providing a safeguard against currency volatility and enhancing the overall risk management of the portfolio.