REG - Invesco Markets II - Shareholder Notice

Moody'sAnnouncement

04/03/2025 15:30

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RNS Number : 3250Z  Invesco Markets II PLC  04 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

4 March 2025

 

 

NOTICE TO SHAREHOLDERS

 

 

 

RE: Fund changes

 

 Fund Name (Funds)                                                               Share Class                    ISIN
 Invesco Quantitative Strategies ESG Global Equity Multi-Factor UCITS ETF        Acc                            IE00BJQRDN15 IE00BJQRDP39

                                                                                 EUR PfHdg Acc EUR PfHdg Dist   IE0008YN55P8
 Invesco Quantitative Strategies ESG Global Low Volatility Low Carbon UCITS ETF  Acc                            IE000N42HDP2 IE000XIBT2R7

                                                                                 EUR PfHdg Acc
 Invesco EUR Corporate Bond ESG Multi-Factor UCITS ETF                           Acc Dist                       IE00021E4FE3 IE0006LBEDV2
 Invesco EUR Corporate Bond ESG Short Duration Multi-Factor UCITS ETF            Acc Dist                       IE000PA766T7 IE000MUAJIF4
 Invesco EUR Government and Related Green Transition UCITS ETF                   Acc Dist                       IE0007BT2BH8 IE0008SEV3B2

 

(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").

 

1.     Investment Policy Changes to the Funds

 

a)    PAB exclusions

According to ESMA's guidelines on funds' names using ESG or
sustainability-related terms (the "Guidelines"), "ESG" and "Green" are
environmental-related terms. The Guidelines require that in order to use
environmental-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").

 

In order to meet the Guideline requirements for Fund names using the term
"ESG" or "Green", the Investment Manager and Sub-Investment Manager have
determined it appropriate to incorporate the PAB exclusions into the ESG
Policy of each of the Funds.

 

The changes are sufficient to meet the requirements of the Guidelines and to
permit the Funds to continue to use environmental-related terms in their
names. The incorporation of the PAB exclusions will not have a material impact
on the Funds' strategies.

b)    Invesco Quantitative Strategies ESG Global Equity Multi-Factor UCITS ETF

 

After reviewing the investment policy of the Fund, the Sub-Investment Manager
proposes to update the investment policy in the following manner:

i.        To remove the 4.5% issuer cap, which applies at each monthly
rebalance of the Fund portfolio. The removal of the restriction is expected to
allow the Fund to more effectively pursue the objective of delivering
outperformance through factor premiums. The change is expected to have minimal
impact on the Fund portfolio.

 

ii.        To incorporate a self-decarbonisation portfolio constraint,
a 7% year on year reduction in the intensity of funded carbon emissions as
part of the investment strategy. The constraint will to an extent, allow the
portfolio to mitigate the risk of the unintended consequence of portfolio
emissions increasing under the existing constraint. The existing carbon
reduction constraint of 50% relative to the Benchmark in the intensity of
revenue-based carbon emissions will remain in place. It is expected that there
are no negative impacts on:

·      The Fund's current or future investable universe.

·      The Fund's ability to achieve its financial objective.

·      The Fund's active risk and tracking error.

2.     Name changes

a)    Invesco EUR Government and Related Green Transition UCITS ETF

According to the Guidelines, in order to use the term "transition" in a fund
name, the fund's investments must be on a clear and measurable path to
environmental or social transition.

 

As the strategy of Invesco EUR Government and Related Green Transition UCITS
ETF does not incorporate a transition pathway, the Investment Manager and
Sub-Investment Manager have determined that it is appropriate to rename the
Fund to remove reference to "transition". Accordingly, in addition to the
above- mentioned change to the Fund's investment policy, it is proposed to
rename the Fund to "Invesco EUR Government and Related Green Bond Weighted
UCITS ETF".

 

b)    Invesco Quantitative Strategies ESG Global Equity Multi-Factor UCITS ETF and Invesco Quantitative Strategies ESG Global Low Volatility Low Carbon UCITS ETF

It is proposed that the names of the above-mentioned funds are simplified to
ensure that they are clearly and consistently labelled and easier for
investors to understand. It is proposed to rename the Funds as follows.

 

 Current Fund Names                                                              New Fund Names
 Invesco Quantitative Strategies ESG Global Equity Multi-Factor UCITS ETF        Invesco Global Active ESG Equity UCITS ETF
 Invesco Quantitative Strategies ESG Global Low Volatility Low Carbon UCITS ETF  Invesco Global Active Defensive ESG Equity UCITS ETF

 

 

3.     Change to ESG data service provider

Moody's Corporation announced in July 2024 that, as a result of a new
strategic partnership with MSCI Inc., it will close its ESG Solutions business
(formerly known as Vigeo Eiris). As a result of this announcement, the Funds
will transition away from using Moody's ESG data and replace it with MSCI ESG
data.

 

It is expected that implementation of this change will result in one-off
increases in the Funds' 12-month portfolio turnover.

 

·      Invesco Quantitative Strategies ESG Global Equity Multi-Factor
UCITS ETF: expected turnover of around 15% instead of the usual ~7% turnover
per month

·      Invesco Quantitative Strategies ESG Global Low Volatility Low
Carbon UCITS ETF: expected turnover of around 35% instead of the usual ~7%
turnover per month

·      Invesco EUR Corporate Bond ESG Multi-Factor UCITS ETF: expected
turnover of around 43% instead of the usual ~5% turnover per month

·      Invesco EUR Corporate Bond ESG Short Duration Multi-Factor UCITS
ETF: expected turnover of around 67% instead of the usual ~5% turnover per
month

·      Invesco EUR Government and Related Green Transition UCITS ETF:
expected turnover of around 3.0% instead of the usual ~2.2% turnover per month

For further information on the Moody's announcement, please refer to the
following link:
https://ir.moodys.com/press-releases/news-details/2024/Moodys-and-MSCI-Announce-a-Strategic-
(https://ir.moodys.com/press-releases/news-details/2024/Moodys-and-MSCI-Announce-a-Strategic-Partnership-to-Enhance-Transparency-and-Deliver-Data-Driven-Risk-Solutions/default.aspx)
Partnership-to-Enhance-Transparency-and-Deliver-Data-Driven-Risk-Solutions/default.aspx.
(https://ir.moodys.com/press-releases/news-details/2024/Moodys-and-MSCI-Announce-a-Strategic-Partnership-to-Enhance-Transparency-and-Deliver-Data-Driven-Risk-Solutions/default.aspx)

 

Changes to the investment policy of the Funds and the data service provider
change will be implemented by 4 April 2025. All name changes will take effect
on 4 April 2025.

 

 

Next steps

The Supplements and/or Article 10 website disclosures 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, 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, Macard 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).
(http://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, Invesco Asset Management (Schweiz) AG, Talacker 34, 8001
Zurich. BNP Paribas Securities Services, Paris, succursale de Zurich,
Selnaustrasse 16, 8002 Zurich will act as the Swiss Paying Agent.

 

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

 

Name: Lisa Martensson Title: Director

Date: 4.3.25

For and on behalf of Invesco Markets II plc

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Directors: Gary Buxton (British/Irish), Deirdre 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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