Invesco FTSE All Share ESG Climate UCITS ETF Acc
| Issuer: Invesco |
| Asset Class: Equity |
| TER: 12bps |
| Trading Currency: GBX |
| Pays Income: False |
| Listing Date: 03 Nov 2021 |
| Ticker: FASA |
| ISIN: IE0003RA2ZR3 |
This fund provides exposure to the UK equity market through the FTSE All-Share index, but with an important environmental, social, and governance (ESG) and climate-focused overlay. It's designed for investors who want broad access to UK companies, from large-caps to small-caps, while aligning their portfolio with sustainability principles. The investment product aims to replicate the performance of its underlying benchmark, which systematically adjusts the weightings of the parent index constituents based on their ESG characteristics and their approach to climate-related risks and opportunities.
The methodology starts with the comprehensive FTSE All-Share universe and then applies a series of screens and tilts. Companies involved in controversial sectors like tobacco, controversial weapons, and thermal coal are excluded. The remaining companies are then re-weighted. Those with stronger ESG ratings receive an increased allocation, while those with weaker profiles see their weight reduced. Furthermore, the index incorporates forward-looking climate considerations, favouring companies that are better positioned for the transition to a low-carbon economy. This dual-focus on both broad ESG factors and specific climate metrics results in a portfolio that retains the core characteristics of the UK market but with an improved sustainability profile.
This product offers a core UK equity holding for a sustainability-conscious investor. It provides a diversified and cost-effective way to access hundreds of British companies while systematically managing ESG and climate-related investment risks. By tilting towards companies with better sustainability credentials, the fund may appeal to those looking for potential long-term resilience, as these firms could be better equipped to handle regulatory changes, reputational challenges, and the physical impacts of climate change. It serves as a single-ticket solution for capturing the breadth of the UK stock market with a responsible investing lens, suitable for a central position in a diversified portfolio.
