Description

The Invesco AT1 Capital Bond UCITS ETF Dist endeavors to replicate the comprehensive total return performance of the iBoxx USD Contingent Convertible Liquid Developed Market AT1 (8% Issuer Cap) Index, net of all associated fees. This "Reference Index" is a specially adapted variant of the iBoxx USD Contingent Convertible Liquid Developed Market AT1 Index, applying rigorous business involvement eligibility criteria and capping individual issuer exposure at 8%. Its design is to evaluate the returns of Additional Tier 1 (AT1) contingent convertible debt securities from financial institutions, aiming for broad market coverage within the USD AT1 capital bond sector while upholding essential standards for liquidity and investability. The index provider, utilizing data from Sustainalytics (a respected firm for ESG and corporate governance analysis), screens out companies engaged in activities such as: controversial weapons, small arms, military contracting, oil sands, thermal coal, tobacco, cannabis, or predatory lending. Additionally, any entities found not to comply with the United Nations Global Compact principles are excluded. The fund pursues its objective by directly acquiring and holding, as extensively and practically as possible, all the constituent securities of the index in their respective proportions. Its portfolio is rebalanced in sync with the index's adjustments, a methodology referred to as full physical replication. This ETF operates under a passive management approach, meaning an investment constitutes the purchase of units in a fund that tracks an index, rather than a direct stake in the fund's underlying assets.