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DUBLIN - Invesco Markets II Plc announced Friday that its Invesco EUR AAA CLO UCITS ETF will incorporate environmental and social characteristics into its investment policy, effective September 30, 2025.
The fund will be reclassified as an Article 8 fund under the Sustainable Finance Disclosure Regulation, according to a company statement. This categorization applies to financial products that promote environmental or social characteristics.
Under the revised investment approach, the fund’s sub-investment manager will implement a proprietary ESG rating framework to evaluate CLO (Collateralized Loan Obligation) managers on a scale from 1 to 5, with lower scores indicating stronger ESG consideration. Only CLO debt securities managed by firms scoring 4 or lower will be eligible for investment.
The fund will specifically promote reducing non-renewable energy use, protecting internationally proclaimed human rights, and limiting greenhouse gas emissions over time.
Invesco stated that these changes will not impact the fund’s risk profile or investment objective.
The announcement affects all share classes of the fund, including the Accumulating shares (IE000Y2JPPS4), Distributing shares (IE000U7LIXH5), and GBP Hedged Accumulating shares (IE000JBJ1NZ4).
Shareholders who wish to redeem their holdings as a result of this change may do so according to the dealing provisions outlined in the fund’s prospectus before the effective date.
The company indicated that the fund’s supplement documentation will be updated to reflect these changes in due course.
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