Friday Funds: Fidelity aims to transition bond ETF to Paris-aligned benchmark

Fidelity International has proposed to change the reference index of its Fidelity Sustainable Global Corporate Bond UCITS ETF (FSMF) to incorporate Paris-aligned benchmark climate criteria. If the proposals are supported by shareholders, the actively-managed $736 million ETF will be renamed the Fidelity Sustainable Global Corporate Bond Paris-Aligned Multifactor UCITS ETF and its reference benchmark will change from the Bloomberg Global Aggregate Corporate to the Solactive Paris Aligned Global Corporate index.

Swiss Life Asset Managers has launched its fourth clean energy-focused fund. The Fontavis ESG Renewable Infrastructure Fund II will invest in unlisted clean energy and infrastructure assets and companies, with the objective of building a globally diversified portfolio of direct infrastructure energy investments. It has a target size of €750 million.

TD Asset Management has developed an exchange-traded fund aimed at offering investors exposure to the global carbon credit market. The TD Global Carbon Credit Index ETF will track the Solactive Global Carbon Credit CAD Hedged Index, which in turn tracks the prices of global cap-and-trade carbon emission allocation markets. 

Dutch asset manager MN said it will invest €300 million on behalf of client PME in two renewable energy funds. The capital will be put into in wind energy projects, solar parks (including related technology) and electrical transport in Europe. 

MetLife Investment Management (MIM) has agreed to acquire ESG-focused fixed income investment manager Affirmative Investment Management (AIM). As part of the acquisition, MIM will integrate AIM’s investing experts, processes and research capabilities to develop ESG-focused investment solutions and enhance its fundamental research, underwriting and security selection processes. 

Eighty percent of global ESG equity products outperformed between 2019 and 2021, but these products have struggled so far in 2022, according to a study by Investment Metrics. The analytics firm looked at 52 funds from 45 asset managers in the “Global ESG equity peer group”. The group was created by screening the broad IM Global Equity Peer Group for products that were branded or focused on ESG themes. 

Giannis Antetokounmpo, a forward for American football team Milwaukee Bucks, is working with Calamos Advisors on an ETF that will invest in sustainable companies, Bloomberg has reported. The Calamos Antetokounmpo Sustainable Equities Fund will exclude any firms involved in activities including animal testing, gambling, nuclear energy and alcohol.