Various changes to the underlying funds of various Invesco funds

01 Sep 2021

  • J01 Invesco Bond
  • J02 Invesco Asian Equity
  • J38 Invesco Emerging Market Equity
  • L40 Invesco Continental European Small Cap Equity
  • L45 Invesco India Bond
  • P47 Invesco Euro Corporate Bond

We have been notified by Invesco Funds (the “Company”) of the following upcoming changes to the underlying funds of above named mirror funds. Please see the below for the details of these changes.

Changes to the underlying funds of the above named mirror funds to include ESG (“Environmental, Social & Governance”) exclusions

The Company has advised that, with effect from 2 November 2021 (the “Effective Date 1”) and in order to meet growing client demand for exclusion-based products, the underlying funds of the above named mirror funds will be repositioned to include ESG-based exclusions based on the following factors, which may be updated from time to time:

  • Level of involvement in coal extraction and production
  • Level of involvement in unconventional oil and gas such as arctic oil and gas exploration extraction, oil sands extraction and shale energy extraction;
  • Level of involvement in tobacco production and tobacco related products;
  • Level of involvement with the production of recreational cannabis.
  • Companies involved in the manufacture or sales of nuclear weapons or components of nuclear weapons to countries that have not signed the Nuclear Non-Proliferation Treaty. In addition, companies will be excluded if they are assessed as being in violation of any of the UN Global Compact’s principles.

 

Fee reduction of the underlying fund of J38 Invesco Emerging Markets Equity      

With effect from 1 October 2021 (the “Effective Date 2”), the management fee of the underlying fund of J38 Invesco Emerging Markets Equity will be reduced as below:

 

Existing Management Fee of the underlying fund of J38 Invesco Emerging Markets Equity

Management Fee of the underlying fund of J38 Invesco Emerging Markets Equity with effect from the Effective Date 2

1.50%

1.00%

 

Change of the benchmark to calculate global exposure for the underlying fund of P74 Invesco Euro Corporate Bond

From 1 November 2021 (the “Effective Date 1”), the benchmark used to calculate the global exposure of the underlying fund of P74 Invesco Euro Corporate Bond will change from 70% Bloomberg Barclays Euro Corporate Index and 30% Bloomberg Barclays Pan European High-Yield (Euro) Index to 85% ICE BofA Euro Corporate Index and 15% ICE BofA Euro High Yield Index.

The Company has advised that it is believed that this benchmark will better reflect the typical allocations of the underlying fund and will provide a better indication to calculate the global exposure of the underlying fund using the relative VaR methodology. The new benchmark will also be used as a comparator for marketing purposes.

Should you have any questions regarding these changes, please contact Fund Services.