DUBLIN - Invesco Markets II Plc has announced changes to the Invesco Nasdaq-100 ESG UCITS ETF (Acc, ISIN IE000COQKPO9), also known as the Fund, to comply with the European Securities and Markets Authority's (ESMA) guidelines on the use of environmental, social, and governance (ESG) terminology in fund names. The adjustments are set to take effect on December 23, 2024.
The ESMA guidelines mandate that any fund using "ESG" in its name must ensure that at least 80% of its investments are used to meet specific environmental or social characteristics. Additionally, the funds must adhere to certain exclusions defined by Article 12(1)(a) - (g) of Commission Delegated Regulation (EU) 2020/1818, known as the PAB exclusions.
To align with these requirements, the Index Provider for the Fund will integrate the PAB exclusions into the methodology of the Reference Index that the Fund tracks. The Fund's manager has reviewed these proposed changes and confirmed that they will enable the Fund to continue using "ESG" in its name without significant impact on the Fund's performance.
Shareholders of the Fund have been advised that they can redeem their shares if they choose to do so, following the dealing provisions outlined in the Fund's Prospectus. The Fund's Supplement will be updated to reflect the changes in due course.
This move comes as part of the broader financial industry's efforts to provide investors with transparent ESG investment options and to prevent the practice of "greenwashing," where the environmental benefits of a product or service are overstated.
The press release statement from Invesco Markets II Plc, which is based in Dublin, Ireland, indicates that shareholders can obtain the Fund's Prospectus, Supplement, and other key documents from the Manager's registered office or the local representatives in the countries where the Company is registered. The documents are also available on the Company's website and the relevant stock exchange websites.
Invesco Markets II Plc is registered in Ireland and operates as an open-ended variable capital umbrella investment company with segregated liability between sub-funds.
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