Invesco ETF launches four new Active ETFs on the LSE

Invesco ETF Launches four new Active ETFs on the London Stock Exchange

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Gary Buxton, Head of ETFs and Index Strategies for EMEA and APAC at Invesco

Invesco Global Enhanced Equity UCITS ETF GBP PfHdg Acc

The Invesco Global Enhanced Equity UCITS ETF GBP PfHdg Acc is an actively managed fund that aims to achieve a long-term return in excess of the MSCI World Index, less the impact of fees.

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

The fund will seek to achieve its investment objective by applying an optimisation process based on Value, Quality and Momentum factors. The investment manager uses its proprietary model to assess the attractiveness of equities in a broad universe of liquid large- and mid-capitalisation developed market securities. Comparisons are conducted within industry groups in each region to ensure comparability. The optimisation process then looks for the best trade-off between exposure of the fund to the three factors, risk considerations and transaction costs.

The entire factor assessment, risk modelling and portfolio construction process is repeated each month, following which the fund’s holdings are rebalanced.

This fund will not seek to track the performance of a benchmark. The fund will hold an actively managed portfolio of securities with the aim of delivering superior risk-adjusted returns over the long term when compared with the average performance of global equity markets. The MSCI World Index may be used for performance comparison.

Invesco USD AAA CLO UCITS ETF GBP Hdg Acc

The Invesco USD AAA CLO UCITS ETF GBP Hdg Acc is an actively managed fund that aims to provide consistent income and capital preservation over the long term.

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

The fund will seek to achieve its investment objective by investing primarily in AAA-rated tranches of US dollar-denominated floating rate securities issued by collateralised loan obligations (“CLOs”). A CLO is a special purpose vehicle securitised by a pool of assets, including senior secured leveraged loans and bonds. Distributions from the pool are paid out to the CLO’s obligations based on a “cashflow waterfall”, with the first flow to the highest debt tranche of the CLO and continued to the lowest debt tranche followed by the equity. The fund is subject to EU risk retention requirements such that the fund may only invest in CLOs if the originator, sponsor or original lender of the CLO has disclosed that it retains, at issuance and on an on-going basis, a material net economic interest in the CLO of at least 5%.

The fund will invest in CLO Debt Securities of any maturity or tranche size. At least 80% of the CLO Debt Securities in which the fund will invest will be AAA-rated CLO Debt Securities. Up to 20% of the CLO Debt Securities being rated investment grade and predominantly comprising AA-rated Debt Securities.

The fund may invest in fixed-rate tranches of CLO Debt Securities up to a maximum of 15% of its net assets. The fund may invest up to 20% of its net assets in CLO Debt Securities that are denominated in currencies other than the US dollar. The fund may invest up to 15% of its net assets in middle market CLO Debt Securities.

The performance of the fund may be compared to the J.P. Morgan CLOIE AAA Index for comparison purposes only. The fund does not track the index nor is it constrained by a benchmark.

Invesco Global Enhanced Equity UCITS ETF Acc

The Invesco Global Enhanced Equity UCITS ETF Acc is an actively managed fund that aims to achieve a long-term return in excess of the MSCI World Index, less the impact of fees.

The fund will seek to achieve its investment objective by applying an optimisation process based on Value, Quality and Momentum factors. The investment manager uses its proprietary model to assess the attractiveness of equities in a broad universe of liquid large- and mid-capitalisation developed market securities. Comparisons are conducted within industry groups in each region to ensure comparability. The optimisation process then looks for the best trade-off between exposure of the fund to the three factors, risk considerations and transaction costs.

The entire factor assessment, risk modelling and portfolio construction process is repeated each month, following which the fund’s holdings are rebalanced.

This fund will not seek to track the performance of a benchmark. The fund will hold an actively managed portfolio of securities with the aim of delivering superior risk-adjusted returns over the long term when compared with the average performance of global equity markets. The MSCI World Index may be used for performance comparison.

Invesco USD AAA CLO UCITS ETF GBP Hdg Dist

The Invesco USD AAA CLO UCITS ETF GBP Hdg Dist is an actively managed fund that aims to provide consistent income and capital preservation over the long term. The fund distributes income 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 fund will seek to achieve its investment objective by investing primarily in AAA-rated tranches of US dollar-denominated floating rate securities issued by collateralised loan obligations (“CLOs”). A CLO is a special purpose vehicle securitised by a pool of assets, including senior secured leveraged loans and bonds. Distributions from the pool are paid out to the CLO’s obligations based on a “cashflow waterfall”, with the first flow to the highest debt tranche of the CLO and continued to the lowest debt tranche followed by the equity. The fund is subject to EU risk retention requirements such that the fund may only invest in CLOs if the originator, sponsor or original lender of the CLO has disclosed that it retains, at issuance and on an on-going basis, a material net economic interest in the CLO of at least 5%.

The fund will invest in CLO Debt Securities of any maturity or tranche size. At least 80% of the CLO Debt Securities in which the fund will invest will be AAA-rated CLO Debt Securities. Up to 20% of the CLO Debt Securities in which the fund will invest may be below AAA-rated subject to such CLO Debt Securities being rated investment grade and predominantly comprising AA-rated Debt Securities.

The fund may invest in fixed-rate tranches of CLO Debt Securities up to a maximum of 15% of its net assets. The fund may invest up to 20% of its net assets in CLO Debt Securities that are denominated in currencies other than the US dollar. The fund may invest up to 15% of its net assets in middle market CLO Debt Securities.

The performance of the fund may be compared to the J.P. Morgan CLOIE AAA Index for comparison purposes only. The fund does not track the index nor is it constrained by a benchmark.

Source: ETFWorld.co.uk