Invesco ETF launches one new EUR AAA CLO UCITS ETF on the LSE

Invesco ETF Launches one new Invesco EUR AAA CLO UCITS ETF GBP Hdg Acc on the London Stock Exchange

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By ETFWorld.co.uk

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

Invesco EUR AAA CLO UCITS ETF GBP Hdg Acc

Product description

The Invesco EUR 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 EUR 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 Euro-denominated floating rate debt 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 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 CLO Debt Securities.

The fund may invest up to 10% of its net assets in CLO Debt Securities that are denominated in currencies other than Euro.

Source: ETFWorld.co.uk