Description

The Invesco MSCI Emerging Markets Universal Screened UCITS ETF aims to provide the net total return performance of the MSCI EM (Emerging Markets) Universal Select Business Screens Index (the “Reference Index”), less the impact of fees. The Reference Index tracks the performance of large and mid-capitalisation companies in global emerging markets and aims to represent the performance of an investment strategy that, by adjusting the constituents’ free-float market capitalisation weights based upon certain environmental, social and governance (“ESG”) metrics, seeks to increase overall exposure to those companies demonstrating both a robust ESG profile as well as a positive trend in improving that profile. The Reference Index is constructed from the MSCI Emerging Markets Index by excluding securities that: 1) have not been assessed or rated by MSCI on the basis of their ESG credentials; 2) have faced very severe controversies pertaining to ESG issues over the last three years; or 3) have a MSCI ESG Rating of CCC; or 4) are involved in controversial weapons, conventional weapons, nuclear weapons, civilian firearms, oil sands, thermal coal, tobacco or recreational cannabis. Each of the eligible component securities is then assigned a combined ESG score, which reflects MSCI’s assessment of both the security’s current ESG rating, as well as the trend in that rating, defined as the change in the security’s ESG rating over time. This combined ESG score is then applied to re-weight the eligible securities in the Reference Index. The portfolio managers aim to achieve the fund’s objective by using portfolio modelling tools and techniques to buy and hold a proportion of the index securities that represents the characteristics of the entire index. The objective of this sampling method is to replicate the index performance as closely as possible while reducing the costs that would normally be incurred with full replication.The fund is rebalanced in line with changes to the Reference Index, which is reviewed and rebalanced on a semi-annual basis. For more details on MSCI ESG Ratings, please refer to: https://www.msci.com/esg-ratings This ETF is passively managed. An investment in this fund is an acquisition of units in a passively managed, index tracking fund rather than in the underlying assets owned by the fund.