A global corporate bond strategy with a dual objective. To generate income and growth while supporting the transition to a low carbon economy.
Reducing carbon emissions will take political will, new technology, and changes in lifestyle and behaviour. Not to mention a huge amount of finance. There’s a lot at stake. The risks and opportunities are unprecedented.
You recycle.
You drive an electric car.
You care about energy efficiency at home.
But what are you doing with your investments?
Now more than ever, investors are thinking about how they can align their portfolios with their values. But they also need healthy returns.
ECO Bond is our first strategy with a dual objective, aiming to provide income and growth while supporting the transition to a low carbon economy.
It finances businesses with strong climate characteristics – adaptable or innovative companies well-suited to a world in transition.
Several key themes are shaping the transition story and our portfolio. One of these is green energy.
As well as investing in renewable power generation companies, we finance those that are upgrading the transmission and distribution networks that deliver green power.
The International Energy Agency has estimated that spending on clean energy needs to more than triple by 2030 if we’re to meet global sustainability goals.
We’re looking for companies that are acting today, to position themselves as tomorrow’s winners.
Electric vehicles are another key area of focus.
We’re already seeing more of them on the roads. And the shift is only in its infancy.
Many car manufacturers are aiming to move half their global production to electric vehicles by 2030.
We look for those that are going further than their peers.
But it’s not just about cherry-picking today’s heroes. We take a long-term approach. Which is why we are more than just a carbon avoidance strategy.
We finance companies in carbon intense sectors, if we believe they’re going a step further in their efforts to reduce emissions.
Because the best way to support transition is by investing in companies that are committed to improving, as well as those that are already there.
As we move towards a net-zero world, winners and losers will emerge as some businesses flourish and others fail to adapt.
We actively select companies with strong climate characteristics that are well positioned for the transition.
Not all sustainable companies issue green bonds. That's why we don't restrict ourselves to green bonds only. Instead, we form our own judgement on a company’s financial and green credentials. For example, if a company we like issues green and non-green bonds, we can choose which is the best value.
We invest in companies in carbon intense sectors, if they are going a step further in their efforts to reduce emissions. We believe that this is the best way to support transition.
We favour companies which:
We invest in renewable power and provide finance to companies that are upgrading the transmission and distribution networks that deliver green power. The electric utility companies in the fund produce electricity at half the CO² of the global average for the sector.
We also have exposure to electric vehicles – an industry that is experiencing huge growth. The car manufacturers in the fund plan to have nearly two thirds of their total production dedicated to electric vehicles or hybrids within five years.
View the Invesco Environmental Climate Opportunities Bond Fund product page for KIDs/KIIDs and factsheets.
Any investment decision should take into account all the characteristics of the fund as described in the legal documents. For sustainability related aspects, please refer to https://www.invescomanagementcompany.lu. The investment concerns the acquisition of units in an actively managed fund and not in a given underlying asset.
For complete information on risks, refer to the legal documents. The value of investments and any income will fluctuate. This may partly be the result of exchange rate fluctuations. Investors may not get back the full amount invested. Debt instruments are exposed to credit risk which is the ability of the borrower to repay the interest and capital on the redemption date. Changes in interest rates will result in fluctuations in the value of the fund. The fund uses derivatives (complex instruments) for investment purposes, which may result in the fund being significantly leveraged. This may also result in large fluctuations in the value of the fund. Investments in debt instruments which are of lower credit quality may result in large fluctuations in the value of the fund. The fund may invest in distressed securities which carry a significant risk of capital loss. The fund may invest in contingent convertible bonds which may result in significant risk of capital loss based on certain trigger events. The fund may invest in a dynamic way across assets/asset classes, which may result in periodic changes in the risk profile, underperformance and/or higher transaction costs. As a portion of the fund may be exposed to less developed countries, you should be prepared to accept large fluctuations in the value of the fund. The fund intends to invest in securities of issuers that manage their Environmental, Social and Governance (ESG) exposures better relative to their peers. This may affect the fund’s exposure to certain issuers and cause the fund to forego certain investment opportunities. The fund may perform differently to other funds, including underperforming other funds that do not seek to invest in securities of issuers based on their ESG ratings.
Find out more about the climate objective and the five-stage investment process.
The portfolio managers for this strategy have a combined 49 years of industry experience. They are supported by the 26-strong team and draw on the expertise of ESG specialists.
Let us know using this form and one of our specialist team will quickly get back to you.
Data as at 31.12.2022, unless otherwise stated. This is marketing material and not intended as a recommendation to buy or sell any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication.
Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice. For more information on our funds and the relevant risks, please refer to the share class-specific Key Information Documents/Key Investor Information Documents (available in local language), the Annual or Interim Reports, the Prospectus, and constituent documents, available from www.invesco.eu. A summary of investor rights is available in English from www.invescomanagementcompany.lu. The management company may terminate marketing arrangements.
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