Invesco ETF launches three new Bond ETFs on the LSE

Invesco ETF launches today three new Bond ETFs on the London Stock Exchange

Sign up to our free newsletters

By ETFWorld.co.uk

Chris Mellor, Head of EMEA Equity ETF Product Management at Invesco

Invesco Global Corporate Bond ESG UCITS ETF Dist

The Invesco Global Corporate Bond ESG UCITS ETF Dist aims to provide the total return performance of the Bloomberg MSCI Global Liquid Corporate ESG Weighted SRI Sustainable Bond Index, less the impact of fees. The fund distributes income on a quarterly basis.

The Reference Index is designed to reflect the performance of global investment grade, fixed-rate, taxable debt 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 BBB; 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, as per the standard Bloomberg MSCI SRI methodology, in any of the following business activities: alcohol, adult entertainment, controversial weapons, conventional weapons, GMOs, firearms, nuclear weapons, nuclear power, oil sands, thermal coal, tobacco, unconventional oil, gas, gambling and fossil fuels 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 tilt allocations compared to their market values in the Global Aggregate Corporate Index, along with limiting the market value weight of issuers to a cap of 5%. The Reference Index rebalances monthly.

Invesco Global Corporate Bond ESG UCITS ETF GBP PfHdg Dist

The Invesco Global Corporate Bond ESG UCITS ETF GBP PfHdg Dist aims to provide the total return performance of the Bloomberg MSCI Global Liquid Corporate ESG Weighted SRI Sustainable Bond Index, less the impact of fees. The fund distributes income on a quarterly basis.

To minimise exposure to fluctuations in the exchange rate between the GBP and the base currencies of the fund’s underlying holdings, the GBP portfolio-hedged share class enters into foreign exchange transactions.

The Reference Index is designed to reflect the performance of multi-currency, investment grade, fixed-rate, taxable debt 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 BBB; 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, biochemical weapons, controversial weapons, conventional weapons, fossil fuels, gambling, genetically modified organisms, firearms, nuclear weapons, nuclear power, oil sands, thermal coal, tobacco, unconventional oil and gas; 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 tilt allocations compared to their market values in the Global Aggregate Corporate Index, along with limiting the market value weight of issuers to a cap of 5%. The Reference Index rebalances monthly.

Source: ETFWorld.co.uk