Invesco quotes 1 ETF on the LSE

The Invesco USD High Yield Corporate Bond ESG UCITS ETF GBP Hdg Dist aims to provide the total return performance of the Bloomberg MSCI USD High Yield Liquid Corporate ESG Weighted SRI Bond Index, less the impact of fees. The fund distributes dividends on a quarterly basis.

To minimise exposure to fluctuations in the exchange rate between USD and GBP, the GBP Hedged share class enters into foreign exchange transactions.

The Reference Index aims to reflect the performance of USD-denominated high yield, fixed-rate securities issued by corporate issuers adjusted based upon certain environmental, social and governance (“ESG”) metrics, which seek to increase overall exposure to those issuers demonstrating a robust ESG profile.

Securities are excluded that according to the index provider’s exclusionary criteria:

1) have an MSCI ESG rating below BB;

2) are issued by an issuer that does not have an MSCI ESG rating;

3) have faced very severe controversies pertaining to ESG issues (including UN Global Compact violations) over the last three years;

4) are issued by an issuer that does not have an MSCI ESG Controversy Score;

5) are involved in alcohol, adult entertainment, controversial weapons, conventional weapons, genetically modified organisms, firearms, nuclear weapons, nuclear power, oil sands, thermal coal, tobacco; or

6) are issued by emerging market issuers.

Each of the eligible component securities is then assigned an ESG score using MSCI ESG metrics. This ESG Score is then applied to re-weight the eligible securities from their natural weights as a result of the notional size of the bond, to construct the weighting of the Reference Index. Issuers are capped at 5% of the market value of the Reference Index. The Reference Index rebalances monthly.