Description

The Invesco GBP Corporate Bond Screened & Tilted UCITS ETF Dist aims to provide the total return performance of the Bloomberg MSCI Sterling Liquid Corporate Screened & Tilted Index (the "Reference Index"), less the impact of fees. The fund distributes income on a quarterly basis. The Reference Index is designed to reflect the performance of sterling-denominated investment grade, fixed-rate, taxable debt securities issued by corporate issuers adjusted based upon certain environmental, social and governance (“ESG”) metrics, which seek to increase overall exposure to those issuers demonstrating a robust ESG profile. Bonds must have GBP 350 million minimum par amount outstanding.Securities are excluded that according to the index provider’s exclusionary criteria: 1) have an MSCI ESG rating below BB; 2) are issued by an issuer that does not have an MSCI ESG rating; 3) have faced very severe controversies pertaining to ESG issues (including UN Global Compact violations) over the last three years; 4) are issued by an issuer that does not have an MSCI ESG Controversy Score; 5) are involved in alcohol, adult entertainment, controversial weapons, conventional weapons, fossil fuels, gambling, genetically modified organisms, firearms, nuclear weapons, nuclear power, oil sands, thermal coal, tobacco, unconventional oil and gas; or 6) are issued by emerging market issuers. Each of the eligible component securities is then assigned an ESG score using MSCI ESG metrics. This ESG Score is then applied to re-weight the eligible securities from their natural weights as a result of the notional size of the bond, to construct the weighting of the Reference Index. The Reference Index rebalances monthly. 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. 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.