Investment Insights

What’s Invesco’s response to SFDR?

31 March 2021
Invesco
Invesco's response to SFDR

Invesco recognises that ESG matters greatly to many of our clients, communities and stakeholders. And it matters to us. Our fundamental belief is that ESG investing is an essential part of the solution to a sustainable future.

But this is not just a belief. We are committed to demonstrating this belief through active ownership and engagement, investment integration, industry advocacy, customised ESG solutions (such as our award-winning low carbon solution) and investment in technology such as our proprietary ESG rating tool ESGintel.

As industry advocates, we welcome the Sustainable Finance Disclosure Regulation (SFDR) that was implemented on 10 March 2021 as part of the EU’s Sustainable Finance Action Plan. (Read more: SFDR: Getting ready for 10 March). In response, we have classified all in-scope products in accordance with SFDR and all our AIF & UCITS Funds comply with the requirements under Article 6.

Additionally, we are pleased to confirm that 18 of our existing Funds comply with Article 8 and that imminent launches and reclassifications are in progress that will bring the total number of Article 8 Funds to 28 by the end of May.

But this is just the beginning. While we acknowledge SFDR is just one piece of a very large puzzle, we are committed to delivering an increasing set of Article 8 products for our clients and are reviewing our full range with the expectation of moving more Funds into the Article 8 category by summer this year. And while we currently have no Funds that meet the criteria of Article 9, we will continue to explore this space. Pivoting and launching Funds is a complex, time-consuming process and we look forward to sharing these developments, and others, with you, over the coming months.

Live Article 8 Funds  (As of 30 March 2021):

  • Invesco Pan European Structured Responsible Equity Fund
  • Invesco Sustainable Allocation Fund
  • Invesco US Senior Loan ESG Fund
  • Invesco European Senior Loan ESG Fund
  • Invesco Global Senior Loan ESG Fund
  • Invesco GBP Corporate Bond ESG UCITS ETF
  • Invesco MSCI Europe ESG Universal Screened UCITS ETF
  • Invesco MSCI USA ESG Universal Screened UCITS ETF
  • Invesco MSCI World ESG Universal Screened UCITS ETF
  • Invesco MSCI Europe ESG Leaders Catholic Principles UCITS ETF
  • Invesco MSCI Japan ESG Universal Screened UCITS ETF
  • Invesco MSCI Pacific ex Japan ESG Universal Screened UCITS ETF
  • Invesco Quantitative Strategies ESG Global Equity Multi-Factor UCITS ETF
  • Invesco Global Clean Energy UCITS ETF
  • Invesco S&P 500 ESG UCITS ETF
  • Invesco MSCI Europe ex UK ESG Universal Screened UCITS ETF
  • Invesco MSCI EMU ESG Universal Screened UCITS ETF
  • Invesco FTSE All Shares ESG Climate UCITS ETF

The above Funds promote environmental and social characteristics and have been designed to comply with article 8 of the EU SFDR. While SFDR does not apply in the UK, the investment manager has applied it to the Invesco Summit Responsible UK fund range (below) on a voluntary basis:

  • Invesco Summit Responsible 1
  • Invesco Summit Responsible 2
  • Invesco Summit Responsible 3
  • Invesco Summit Responsible 4
  • Invesco Summit Responsible 5

Funds reclassifying to Article 8 in April:

  • Invesco Responsible Global Real Assets Fund (currently Invesco Global Real Estate Securities Fund)
  • Invesco Responsible Japanese Equity Value Discovery Fund (currently Invesco Japanese Equity Value Discovery Fund)
  • Invesco Energy Transition Fund (currently Invesco Energy Fund)
  • Invesco Sustainable Pan European Structured Equity Fund (currently Invesco Pan European Structured Equity Fund)
  • Invesco Sustainable Global Structured Equity Fund (currently Invesco Global Structured Equity Fund).

A look towards a greener future

The SFDR is part of a broader package of new rules that form part of the EU Sustainable Finance Action Plan, and it is just the beginning. While the EU is currently a leader when it comes to developing its sustainability regulatory framework, other jurisdictions are not far behind and we are now seeing a number of international initiatives underway to foster convergence and global consistency. We continue to stay abreast of these developments, educate our clients and are committed to continuously monitoring and developing innovative solutions that best meet the needs of our clients. To learn more about the regulatory drives in sustainable investing, read our latest whitepaper: Shifting Gears: Preparing for the new sustainable finance regulations in Europe.

Discover Invesco ESG

Investment risks

  • The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.

Important information

  • Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals, they are subject to change without notice and are not to be construed as investment advice.

    UCITS ETF’s units / shares purchased on the secondary market cannot usually be sold directly back to UCITS ETF. Investors must buy and sell units / shares on a secondary market with the assistance of an intermediary (e.g. a stockbroker) and may incur fees for doing so. In addition, investors may pay more than the current net asset value when buying units / shares and may receive less than the current net asset value when selling them.

    This does not constitute an offer or solicitation by anyone in any jurisdiction in which such an offer is not authorised or to any person to whom it is unlawful to make such an offer or solicitation. As with all investments, there are associated risks. This document is by way of information only. Asset management services are provided by Invesco in accordance with appropriate local legislation and regulations. Each offshore fund is available only in jurisdictions where its promotion and sale is permitted. Not all share classes of this fund may be available for public sale in all jurisdictions and not all share classes are the same nor do they necessarily suit every investor. Fee structure and minimum investment levels may vary dependent on share class chosen. Please check the most recent version of the fund prospectus in relation to the criteria for the individual share classes and contact your local Invesco office for full details of the fund registration status in your jurisdiction.

    All investment decisions must be based only on the most up to date legal offering documents. The legal offering documents (fund and share class specific Key Investor Information Document (KIID), prospectus, annual & semi-annual reports, articles) are available free of charge on our website etf.invesco.com and from the issuers or relevant information agent.

    For more information on our offshore funds, please refer to the most up to date relevant fund and share class-specific Key Investor Information Documents, the latest Annual or Interim Reports and the latest Prospectus, and constituent documents.

    For the purposes of UK law, the offshore funds are recognised schemes under section 264 of the Financial Services & Markets Act 2000. The protections provided by the UK regulatory system, for the protection of Retail Clients, do not apply to offshore investments.

    For the most up to date information on our onshore funds, please refer to the relevant fund and share class-specific Key Information Documents, the Supplementary Information Document, the Annual or Interim Reports and the Prospectus, which are available using the contact details shown.