REG - Invesco Markets II - Notice to Shareholders

Euronext NVAnnouncement

10/04/2024 14:15

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RNS Number : 0656K  Invesco Markets II PLC  10 April 2024

                Invesco Markets II plc

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

                Telephone +353 1 439 8000

                www.invesco.com
 10 April 2024

10 April 2024

NOTICE TO SHAREHOLDERS

 

RE:         Fund re-categorisations pursuant to SFDR

Invesco MSCI Emerging Markets ESG Climate Paris Aligned UCITS ETF

Invesco MSCI Europe ESG Climate Paris Aligned UCITS ETF

Invesco MSCI Japan ESG Climate Paris Aligned UCITS ETF

Invesco MSCI USA ESG Climate Paris Aligned UCITS ETF

Invesco MSCI World ESG Climate Paris Aligned UCITS ETF

(each the "Fund" and together the "Funds")

 

 

Dear Shareholder

 

 

We are writing to you as a Shareholder of the Fund/s, each a sub-fund of
Invesco Markets II plc (the "Company"), to inform you of the following change
to the SFDR categorisation of the Funds pursuant to Regulation (EU) 2019/2088
of the European Parliament and of the Council of 27 November 2019 on
sustainability related disclosures in the financial services sector ("SFDR").
Share classes along with ISINs can be found in Schedule I, attached to this
notice.

 

 

Background and Changes

 

 

1.     Re-categorisation under SFDR

 

On 14 April 2023, the European Commission published its answers to the
European Supervisory Authorities' questions dated September 2022. The European
Commission confirmed that funds that have a reduction in carbon emissions as
their objective and track Paris Aligned Benchmarks (benchmarks that qualify as
EU Paris-aligned Benchmark under Title III, Chapter 3a, of Regulation (EU)
2016/1011) can be categorised as Article 9 and are deemed to make sustainable
investments.

 

Accordingly, the Directors have determined that it is appropriate to
re-categorise the Funds to Article 9 from their current Article 8
categorisation in line with regulatory guidance.

 

These Changes are for SFDR purposes only and there is no change to the
investment objective or policy of the Funds as a result, with the Funds
continuing to seek to reduce their exposure to transition and physical climate
risks whilst pursuing opportunities arising from a transition to a lower
carbon economy and aligning with the Paris Agreement requirements.

 

2.     Change to the investment policy of Invesco MSCI Emerging Markets
ESG Climate Paris Aligned UCITS ETF

 

Going forward, the Fund will be managed as a full replication strategy instead
of the current sampling approach. This will allow the Fund to more closely
track the Reference Index, should any components of the Reference Index
increase to over 10% of the Reference Index.

 

 Current investment policy                                                        Proposed investment policy
 In order to achieve the investment objective, the Fund will employ a sampling    In order to achieve the investment objective, the Fund will employ a
 strategy ("Sampling Strategy").                                                  replication method that looks to invest as far as possible and practicable in

                                                                                the constituents of the Reference Index. The Fund intends to replicate the
                                                                                  Reference Index by holding all of its constituent securities in a similar

                                                                                proportion to their weightings in the Reference Index. In order to replicate
 In tracking the Reference Index, the Investment Managers applies the Sampling    the Reference Index, the Fund may invest up to 20% of its Net Asset Value in
 Strategy, which includes the use of quantitative analysis and uses factors       shares issued by the same body.
 such a country weights, industry sector weights, market capitalisation,

 dividend yield and liquidity to select securities from the Reference Index
 that results in a portfolio that has an investment profile similar to that of

 the Reference Index.                                                             There are a number of circumstances where gaining access to the components of

                                                                                the Reference Index may be prohibited by regulation, may not otherwise be in
                                                                                  the Shareholders' interest or may not otherwise be possible or practicable.

 Where consistent with its investment objective, and in conjunction with the
 use of a Sampling Strategy, the Fund may also hold some securities which are
 not component securities of the Reference Index, but are of a similar nature
 to them and whose risk, return and environmental, social and governance
 ("ESG") characteristics either (a) closely resemble the risk, return and ESG
 characteristics of constituents of the Reference Index or of the Reference
 Index as a whole, (b) whose addition improves the quality of the replication
 of the Reference Index, or (c) whose future inclusion into the Reference Index
 is anticipated. The level of sampling will vary over the life of the Fund
 depending on asset levels of the Fund, as certain asset levels may make
 replication uneconomical or impractical, and the nature of the components of
 the Reference Index. It is generally expected that the Fund will hold less
 than the total number of securities in the Reference Index however, the
 Investment Manager reserves the right to hold as many securities as it
 believes necessary to achieve the Fund's investment objective.

 

 

Effective Date

 

The Changes will take effect on receiving approval by the Central Bank of
Ireland and the Supplements will be amended in due course to reflect these
Changes which will be available to Shareholders free of charge.

 

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
Supplements.

 

General

 

Shareholders may obtain the Prospectus, the key information document, the
latest annual and semi-annual reports and copies of the constitution of the
Company free of charge from the registered office of the Manager or the local
representatives in the countries where the Company is registered as well as
from the German information agent, Marcard Stein & Co AG, Ballindamm 36,
20095 Hamburg, Germany and on the website of the Company - etf.invesco.com or
- limited to the Prospectus, the key information documents - on the website of
the relevant stock exchange where the Shares are listed (for Italy, on the
website of Borsa Italiana S.p.a. www.borsaitaliana.it). In Switzerland, the
Prospectus, the key information documents, the latest annual and semi-annual
reports and copies of the M&A may be obtained free of charge from the
Swiss Representative and Paying Agent, BNP Paribas, Paris, Zurich branch,
Selnaustrasse 16, 8002 Zurich, Switzerland.

 

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

 

If you have any queries arising from this notice, please contact us at
invest@Invesco.com (mailto:invest@Invesco.com) .

 

 

Yours faithfully

 

 

____________________

Title: Director

Name: Feargal Dempsey

Date: 9 April 2024

For and on behalf of

Invesco Markets II plc

 

SCHEDULE 1

 Sub-fund                                                           Share class  ISIN
 Invesco MSCI Emerging Markets ESG Climate Paris Aligned UCITS ETF  Acc          IE000PJL7R74
 Invesco MSCI Europe ESG Climate Paris Aligned UCITS ETF            Acc          IE000TI21P14
 Invesco MSCI Japan ESG Climate Paris Aligned UCITS ETF             Acc          IE000I8IKC59
 Invesco MSCI USA ESG Climate Paris Aligned UCITS ETF               Acc          IE000RLUE8E9
 Invesco MSCI World ESG Climate Paris Aligned UCITS ETF             Acc          IE000V93BNU0

 

 

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