The Fidelity Global Government Bond Climate Aware UCITS ETF Accumulating GBP (Hedged) Shares (FGGG) is an Ireland-domiciled fixed-income ETF managed by Fidelity International and traded on the London Stock Exchange.

The fund seeks to track the performance of the Solactive Paris Aware Global Government USD Index, a benchmark composed of local-currency government bonds issued by investment-grade countries and designed to incorporate carbon-emissions-reduction criteria.

FGGG provides global sovereign debt exposure through a passive strategy linked to a climate-aware benchmark. The fund uses physical replication, operates under the UCITS framework, and follows an accumulating income policy. The FGGG share class is hedged to the British pound, seeking to reduce the impact of movements in the currencies of the underlying securities on GBP returns.

The Solactive Paris Aware Global Government USD Index is designed to represent local-currency government bonds issued by investment-grade countries while incorporating decarbonization objectives. Its methodology seeks to maintain a lower carbon-emissions intensity than the investable universe and pursue a progressive reduction in that measure over time. The index is rebalanced monthly.

Composition / Exposure Profile

FGGG primarily provides exposure to:

• Sovereign bonds issued by investment-grade countries.

• U.S. Treasury securities.

• European sovereign debt.

• Government bonds from developed Asia-Pacific markets.

• Sovereign bonds denominated in issuers' respective local currencies.

The strategy provides exposure across different global sovereign debt markets. Country weights, however, are not determined solely by the size of their respective bond markets, as the benchmark's climate methodology also influences portfolio composition.

The FGGG share class is hedged to the British pound. The hedge seeks to substantially reduce the impact of foreign exchange movements from securities denominated in other currencies, although it does not completely eliminate currency risk.

Structure and Costs

FGGG trades in British pounds on the London Stock Exchange. The fund's base currency is the U.S. dollar, while the FGGG share class base currency is the British pound. The ETF has an ongoing charges figure of 0.25% per year and uses physical replication. It is domiciled in Ireland, operates under the UCITS framework, and has an ICAV legal structure.

FGGG is an accumulating share class, meaning interest and other income generated by its holdings are reinvested within the fund rather than distributed periodically to shareholders. The share class also uses currency hedging to the British pound.

History and Evolution of the ETF

The FGGG was launched in 2023 to provide exposure to global sovereign debt through a passive strategy incorporating climate-transition criteria.

Since its launch, the fund has maintained a strategy linked to the Solactive Paris Aware Global Government USD Index, combining exposure to investment-grade government bonds with a methodology designed to progressively reduce carbon-emissions intensity.

Throughout its history, the fund's performance has reflected movements in global sovereign fixed-income markets, including changes in interest rates, inflation expectations, and monetary policies across major economies, as well as the effects of the benchmark's climate methodology on country allocations.

Additional Information

Fidelity Global Government Bond Climate Aware UCITS ETF Accumulating GBP (Hedged) Shares (Ireland) is an exchange-traded fund (ETF), with assets under management totaling $410.00 Thousand.

Over the past 12 months, Fidelity Global Government Bond Climate Aware UCITS ETF Accumulating GBP (Hedged) Shares recorded a return of -2.31%, with its price trading between $7.15 and $9.99 during the same period.

The ETF is traded under the ticker FGGG.