Invesco USD Corporate Bond UCITS GBP Hedged ETF

Issuer: Invesco

Asset Class: Fixed Income

TER: 12bps

Trading Currency: GBX

Pays Income: False

Listing Date: 26 Nov 2019

Ticker: PUIP

ISIN: IE00BJ06C481

This investment vehicle offers targeted exposure to the global market of US dollar-denominated, investment-grade corporate bonds, with a specific focus on environmental, social, and governance (ESG) principles and climate transition objectives. The strategy is designed for investors who want to align their fixed-income allocation with the goals of a low-carbon economy. By tracking its designated benchmark, the fund systematically incorporates climate-aware criteria, aiming to provide a return profile similar to the broad investment-grade corporate bond market but with significantly improved sustainability characteristics and a reduced carbon footprint.

The fund’s underlying index employs a multi-stage filtering process. It begins by excluding issuers involved in controversial business activities such as controversial weapons, tobacco, and thermal coal, as well as those failing to meet minimum ESG standards. The remaining bonds are then re-weighted based on the issuer's climate credentials. Companies demonstrating a clear path towards decarbonization, including those with ambitious science-based targets and those providing 'green' solutions, receive increased weight. Conversely, the influence of companies with high carbon emissions and insufficient transition strategies is reduced. This methodology ensures the portfolio is aligned with the long-term temperature goals of the Paris Agreement, offering a forward-looking approach to fixed-income investing. This makes it a suitable core holding for investors seeking stable income and capital preservation while contributing to positive climate action.