Invesco Global Corporate Bond ESG Climate UCITS ETF GBP PfH Dist
| Issuer: Invesco |
| Asset Class: Fixed Income |
| TER: 19bps |
| Trading Currency: GBX |
| Pays Income: False |
| Listing Date: 12 Apr 2024 |
| Ticker: GBEG |
| ISIN: IE000P2WSBY0 |
This product provides sterling-hedged exposure to a portfolio of global investment-grade corporate bonds, designed to track a benchmark that incorporates stringent Environmental, Social, and Governance (ESG) and climate-focused criteria. The underlying strategy adheres to the rigorous standards of the EU Paris-Aligned Benchmark (PAB), which mandates significant decarbonization relative to the broader market. By hedging its currency exposure to the British pound, the instrument aims to neutralize the impact of foreign exchange fluctuations for UK-based investors, providing a purer exposure to the credit and interest rate risks of the global corporate bond market.
The investment process begins with a broad universe of global corporate bonds and applies a multi-stage filtering methodology. Initially, issuers involved in controversial business activities, such as controversial weapons, tobacco, and thermal coal, are excluded. Subsequently, companies with poor ESG ratings are removed from the eligible universe. The remaining securities are then optimized and re-weighted to achieve two primary climate objectives: a 50% reduction in carbon intensity compared to the parent universe and a further 7% year-on-year decarbonization trajectory. This ensures the portfolio is aligned with the long-term goals of the Paris Agreement to limit global warming.
This investment is tailored for individuals and institutions looking to integrate climate-conscious principles into the core fixed income allocation of their portfolios. It offers a solution for those who want to generate income and capital returns from global corporate debt while actively contributing to the transition towards a low-carbon economy. The product is particularly suitable for investors who seek to mitigate both climate-related risks and currency volatility in their bond holdings. By offering a diversified, sustainable, and currency-hedged solution, it serves as a robust building block for a modern, forward-looking investment portfolio.
