REG - Invesco Markets II - SHAREHOLDER NOTICE

Euronext NVAnnouncement

16/11/2022 16:15

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RNS Number : 6680G  Invesco Markets II PLC  16 November 2022

   Invesco Markets II plc

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

   Telephone +353 1 439 8000

   www.invesco.com

SHAREHOLDER NOTICE

 

 

16 November 2022

 

 

RE:         Investment policy update and index methodology changes
effective 30 November 2022 in respect of indices tracked by the following
funds:

 

Invesco USD IG Corporate Bond ESG UCITS ETF;

                Invesco EUR IG Corporate Bond ESG UCITS ETF;

                Invesco GBP Corporate Bond ESG UCITS ETF;

                Invesco USD High Yield Corporate Bond ESG UCITS
ETF; and

                Invesco MSCI Emerging Markets ESG Universal
Screened UCITS ETF.

 

(each a "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 changes
to the investment policy and the methodology of the Reference Indices tracked
by the Funds as detailed herein. Share classes along with ISINs can be found
in Schedule I, attached to this notice.

 

Changes

 

The Supplements of each Fund will be amended to reflect the following changes:

 

1.     The Investment Policy section of the Supplement for the following
Funds will be amended as detailed below:

 

1.1.   Invesco GBP Corporate Bond ESG UCITS ETF;

1.2.   Invesco USD High Yield Corporate Bond ESG UCITS ETF; and

1.3.   Invesco MSCI Emerging Markets ESG Universal Screened UCITS ETF.

 

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

                                                                                Investment Manager reserves the right to hold as many securities as it
 many securities as it believes necessary to achieve the Fund's investment        believes necessary to achieve the Fund's investment objective.
 objective

 

 

 

2.     The following methodology update applies to:

 

Invesco USD High Yield Corporate Bond ESG UCITS ETF

 

2.1.   The exclusion criteria of the methodology of the Reference Index will
be amended such that, in addition to the existing criteria, securities that
are involved (as defined by the Index Provider) in business activities
relating to gambling and fossil fuels will be removed and/or excluded from
each Reference Index.

 

3.     The following methodology changes apply to:

 

Invesco USD IG Corporate Bond ESG UCITS ETF;

Invesco EUR IG Corporate Bond ESG UCITS ETF; and

Invesco GBP Corporate Bond ESG UCITS ETF.

 

3.1.   The exclusion criteria of the methodology of the Reference Index will
be amended such that, in addition to the existing criteria, securities that
(i) do not have an MSCI ESG Rating and/or do not have an Overall MSCI Impact
Score (or MSCI Controversy Score); (ii) have an MSCI ESG Rating below BB ; and
(iii) are involved (as defined by the Index Provider) in business activities
relating to alcohol, gambling, GMOs, nuclear power, adult entertainment and
fossil fuels will be removed and/or excluded from each Reference Index;

 

3.2.   Each Reference Index will include an issuer cap of 5%; and

 

3.3.   The name of each Reference Index will be changed as below

 

 Current Reference Index name                                      New Reference Index name
 Bloomberg MSCI USD Liquid Corporate ESG Weighted Bond Index       Bloomberg MSCI USD Liquid Corporate ESG Weighted SRI Bond Index
 Bloomberg MSCI Euro Liquid Corporate ESG Weighted Bond Index      Bloomberg MSCI Euro Liquid Corporate ESG Weighted SRI Bond Index
 Bloomberg MSCI Sterling Liquid Corporate ESG Weighted Bond Index  Bloomberg MSCI Sterling Liquid Corporate ESG Weighted SRI Bond Index

 

Please refer to the website of the Index Provider for updated index factsheets
at
https://www.bloomberg.com/professional/product/indices/bloomberg-msci-esg-indices/
(https://www.bloomberg.com/professional/product/indices/bloomberg-msci-esg-indices/)

 

(the "Changes")

 

 

The aforementioned Changes across each Fund will take effect on or around 30
November 2022. These Changes will be reflected in each Supplement in due
course, 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 each
Supplement.

 

General

 

Shareholders may obtain the Prospectus, the key investor 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 investor 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 investor 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, Zürich branch, Selnaustrasse 16, 8002 Zürich, 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

 

 

 

 

 

For and on behalf of

Invesco Markets II plc

 

 

SCHEDULE I

 

 Sub-fund                                                        Share class   ISIN
 Invesco USD IG Corporate Bond ESG UCITS ETF                     Dist          IE00BF51K025
 Invesco USD IG Corporate Bond ESG UCITS ETF                     GBP Hdg Dist  IE00BJ06C481
 Invesco EUR IG Corporate Bond ESG UCITS ETF                     Dist          IE00BF51K249
 Invesco GBP Corporate Bond ESG UCITS ETF                        Dist          IE00BKW9SV11
 Invesco USD High Yield Corporate Bond ESG UCITS ETF             Dist          IE00BJP5NL42
 Invesco USD High Yield Corporate Bond ESG UCITS ETF             GBP Hdg Dist  IE000QXAXLT5
 Invesco MSCI Emerging Markets ESG Universal Screened UCITS ETF  Acc           IE00BMDBMY19

 

 

 

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