Description

The Invesco MSCI Pacific Ex Japan Universal Screened UCITS ETF seeks to mirror the performance of its designated benchmark, the MSCI Pacific ex Japan Universal Select Business Screens Index, net of all charges. This underlying index concentrates on major and medium-sized companies across developed Pacific economies, specifically excluding Japan. Its methodology aims to increase its allocation to businesses that demonstrate both robust environmental, social, and governance (ESG) credentials and a positive trajectory in improving these standards, by modifying their free-float market capitalisation weights according to defined ESG criteria. The construction of the Reference Index starts with the broader MSCI Pacific ex Japan Index, from which certain securities are systematically removed. These exclusions apply to companies that: 1. Have not undergone an ESG assessment or received a rating from MSCI. 2. Have been linked to very serious ESG-related controversies within the last three years. 3. Hold a 'CCC' MSCI ESG Rating. 4. Are involved in controversial weapons, conventional weapons, nuclear weapons, civilian firearms, oil sands, thermal coal, tobacco, or recreational cannabis. Each remaining eligible security is then assigned a comprehensive ESG score, which factors in its current MSCI ESG rating alongside the observed trend in that rating over time. This combined score is subsequently used to adjust the weighting of these securities within the Reference Index. The index undergoes rebalancing twice a year. This ETF is passively managed, meaning an investment represents acquiring units in an index-tracking fund rather than direct ownership of the fund's underlying assets. For further details on MSCI ESG Ratings, please consult MSCI's official website.