Invesco manages approximately $41.1 billion* in senior secured bank loans for institutional, retail and high net worth clients globally. More and more of these clients are focused on Environmental, Social, and Governance (ESG) criteria for investments and have asked for ESG-managed bank loan portfolios.
As bank loans are private, only a small pool of the investable universe is rated by external ESG rating providers. In order to develop an ESG product that would work for its clients, Invesco has developed a proprietary framework for rating each issuer. Our collaborative approach to ESG helps investors to better understand Invesco’s ESG considerations. Invesco’s bank loans analysts have conducted extensive due diligence reviews and engagement with issuers’ management teams and have compiled proprietary ESG ratings on more than 700 issuers. In addition, Invesco’s bank loans team now works closely with other groups within Invesco on the further development of Invesco’s ESG framework and process.
By offering the Invesco US Senior Loan ESG fund in a commingled format, Invesco enables investors to invest on a daily basis, similar to the other senior secured loan products we manage. Through this platform, Invesco is able to offer investors access to a bank loan fund managed according to stringent ESG criteria.
“We believe we’ve created the first US Senior Loan ESG strategy for investors that were unable to follow-through on their own Senior Loan ESG mandates because of the investment size,” Kevin Petrovcik says. “Working with a large seed investor, we are able to provide immediate portfolio diversification for this strategy and offer the daily liquidity that investors require. We have received significant interest in our ESG strategy from both existing clients and prospective clients and look to broaden this capability to other strategies and geographies.”
Since its launch in July, the US Senior Loan ESG Fund has reached a size of USD 628.05 million (as per 31 December 2019).
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