REG - Invesco Markets II - Notice to Shareholders

BNP Paribas SAAnnouncement

21/03/2025 17:15

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RNS Number : 7359B  Invesco Markets II PLC  21 March 2025

 

 

Invesco Markets II Plc

Ground Floor, 2 Cumberland Place, Fenian Street, Dublin 2, D02 H0V5, Ireland

Telephone/Switchboard +44 (0)20 3370 1100 etf.invesco.com

 

21 March 2025

 

NOTICE TO SHAREHOLDERS

 

RE: (i) Index methodology changes, and (ii) Change of fund name and index name
and (iii) Change to Constituent Weight Review Rules

 

 Fund Name                                                   Share Class  ISIN
 Invesco S&P World Energy ESG UCITS ETF                      Acc          IE000AIFGRB9
 Invesco S&P World Financials ESG UCITS ETF                  Acc          IE00018LB0D8
 Invesco S&P World Health Care ESG UCITS ETF                 Acc          IE000L4EH2K5
 Invesco S&P World Information Technology ESG UCITS ETF      Acc          IE000Q0IU5T1

 

 

(each a "Fund" and together the "Funds") Dear Shareholder,

This notice is to inform you of proposed changes to the Funds each a sub-fund
of Invesco Markets II plc (the "Company"), to meet the requirements of ESMA's
guidelines on funds' names using ESG or sustainability-related terms (the
"Guidelines").

According to the Guidelines, "ESG" is an environmental-related term. The
Guidelines require that in order to use environment-related terms in a fund
name, the strategy of the relevant fund must: (i) meet an 80% threshold linked
to the proportion of investments used to meet the environmental and social
characteristics of the fund; and (ii) incorporate the exclusions referred to
in Article 12(1)(a) - (g) of Commission Delegated Regulation (EU) 2020/1818
(the "PAB exclusions").

 

i)              Index methodology change

In order to meet the requirement to incorporate the PAB exclusions and noting
that the Funds attain their environmental and social characteristics by virtue
of tracking a Reference Index, the Index Provider, following consultation, has
determined it appropriate to incorporate the PAB exclusions into the
methodology for the relevant Reference Index set out below.

 

 Fund                                                        Reference Index
 Invesco S&P World Financials ESG UCITS ETF                  S&P World ESG Enhanced Financials Index
 Invesco S&P World Health Care ESG UCITS ETF                 S&P World ESG Enhanced Health Care Index
 Invesco S&P World Information Technology ESG UCITS ETF      S&P World ESG Enhanced Information Technology Index

The Manager has reviewed the proposed changes to the methodology for each
Reference Index and has determined that the changes are sufficient to meet the
requirements of the Guidelines and to permit the Funds to continue to use
their current names.

 

The incorporation of the PAB exclusions into the methodologies of the
Reference Indices are not expected to have a material impact on the Funds.

 

ii)              Reference Index name change and Fund name change

The methodology of the S&P World ESG Enhanced Energy Index, the Reference
Index tracked by Invesco S&P World Energy ESG UCITS ETF does not
incorporate the PAB exclusions. The Index Provider has determined that it
would not be in line with the objective of the Reference Index (which provides
exposure to large and mid-capitalisation energy sector companies) to
incorporate the PAB exclusions. Therefore, the Index Provider, following
consultation, has determined it appropriate to rename the Reference Index to

remove "ESG". Accordingly, it is proposed to rename the Fund to reflect the
new Reference Index name. The change will not impact on the investment
strategy of the Fund. Details of the proposed name changes are as follows:

 

 Current Fund Name                           New Fund Name
 Invesco S&P World Energy ESG UCITS ETF      Invesco S&P World Energy Targeted & Screened UCITS ETF

 

 Current Reference Index Name             New      Reference      Index Name
 S&P World ESG Enhanced Energy Index      S&P World Energy Targeted & Screened Index

 

iii)            Change to Constituent Weight Review Rules

The methodology of the References Indices has been updated such that the
constituent weight review check for all the Reference Indices tracked by these
Funds will take place at the mid-quarterly review in addition to the
semi-annual and quarterly review dates. This change will help the Reference
Indices and Funds to better stay within UCITS diversification requirement.

 

The changes will take effect on or around 1 May 2025. Further details of the
change to the name of the S&P World ESG Enhanced Energy Index and the
changes to the methodologies of the, S&P World ESG Enhanced Financials
Index, S&P World ESG Enhanced Health Care Index and the S&P World ESG
Enhanced Information Technology Index can be found here:

 

https://www.spglobal.com/spdji/en/client-services/current-transitions/sp-dow-jones-indices-announces-
(https://www.spglobal.com/spdji/en/client-services/current-transitions/sp-dow-jones-indices-announces-renaming-of-some-sustainability-indices/?utm_source=pdf_education)
renaming-of-some-sustainability-indices/?utm_source=pdf_education
(https://www.spglobal.com/spdji/en/client-services/current-transitions/sp-dow-jones-indices-announces-renaming-of-some-sustainability-indices/?utm_source=pdf_education)

https://www.spglobal.com/spdji/en/documents/indexnews/announcements/20250108-
(https://www.spglobal.com/spdji/en/documents/indexnews/announcements/20250108-1476219/1476219_sp-world-esg-enhanced-sector-update-20250108.pdf)
1476219/1476219_sp-world-esg-enhanced-sector-update-20250108.pdf
(https://www.spglobal.com/spdji/en/documents/indexnews/announcements/20250108-1476219/1476219_sp-world-esg-enhanced-sector-update-20250108.pdf)

 

Next steps

 

The Supplements of the Funds will be amended to reflect the above-mentioned
changes in due course.

Should you wish to redeem your shareholding as a result of the changes, you
may do so in accordance with the dealing provisions outlined in the
Prospectus.

 

General

Shareholders may obtain the Prospectus, a copy of the Supplement, the key
investor information documents, the latest annual and semi-annual reports and
copies of the Constitution free of charge from the registered office of the
Manager or the local representatives in the countries where the Company is
registered and in Switzerland at BNP Paribas, Paris, Zurich branch,
Selnaustrasse 16, 8002 Zurich which is the Swiss representative and paying
agent, as well as from the German information agent Marcard, Stein & Co
AG, Ballindamm 36, 20095 Hamburg, Germany and where applicable on the website
of the Company - etf.invesco.com.

 

All capitalised terms used in this notice shall bear the same meaning as the
capitalised and defined terms used in the Prospectus and Supplement.

 

Yours faithfully

 

 

For and on behalf of Invesco Markets II plc

 

 

 

 

 

 

 

 

 

Directors: Gary Buxton (British/Irish), Deidre Gormley, Sarah (Katy) Walton
Jones (British), Lisa Martensson (Swedish) Invesco Markets II plc, registered
in Ireland as an open- ended variable capital umbrella investment company with
limited liability and segregated liability between sub-funds.

 

Registered number: 567964. Registered office: Ground Floor, 2 Cumberland
Place, Fenian Street, Dublin 2, D02 H0V5, Ireland

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