Description

This Invesco ETF, specifically the GBP Hedged Distributing share class, aims to mirror the overall return performance of the iBoxx USD Contingent Convertible Liquid Developed Market AT1 (8% Issuer Cap) Index, net of all expenses. Income is distributed to investors on a quarterly basis. To lessen the impact of exchange rate volatility between the US Dollar and the British Pound, the GBP Hedged share class engages in foreign exchange transactions. The benchmark index is a tailored variant of the standard iBoxx USD Contingent Convertible Liquid Developed Market AT1 Index. This adaptation imposes an 8% maximum weighting on the five largest issuers and a 5% limit on all other constituent issuers. Its purpose is to measure the performance of Additional Tier 1 (AT1) contingent convertible debt instruments issued by financial institutions, seeking to offer broad exposure to the USD AT1 capital bond universe while maintaining high standards for ease of investment and tradability. The index provider constructs this benchmark by applying specific exclusion criteria. Securities are filtered out if they are involved in certain controversial business activities—including controversial weapons, small arms, military contracting, oil sands, thermal coal, tobacco, cannabis, and predatory lending—as determined by data from Sustainalytics, an independent ESG research firm. Furthermore, any securities found not to comply with the principles of the United Nations Global Compact are also excluded. The fund pursues its investment objective primarily through full physical replication. This means it endeavors to acquire and hold, wherever feasible, all the securities within the index according to their respective weightings. The portfolio's holdings are adjusted in alignment with any rebalancing of the underlying index. This ETF is passively managed; thus, an investment constitutes the purchase of units in a fund designed to track an index, rather than direct ownership of the fund's underlying assets.