Invesco has added to its ESG offering with a new Article 9 global fixed income fund.
The Invesco Sustainable Global Income Fund invests in corporate bonds, government bonds and global equities that support the transition to a low-carbon economy over the medium to long term.
The portfolio is constructed using a combined approach of identifying key trends in the global economy along with research into individual companies, but its management team have plainly said it is not a low-carbon fund.
The Article 9 fund invests in companies and governments with strong climate characteristics and will also apply several sector exclusions, excluding companies that take a certain amount of their revenue from non-sustainable sources.
The fund is managed by Alexandra Ivanova and Edward Craven in the fixed interest team and Stephen Anness and Andrew Hall in global equities.
Ivanova said the new product is not explicitly a “green bond fund or a low-carbon fund.”
“It is a fund that invests in companies that use very active stock picking and securities selection. We are seeking to finance companies that can make a difference, utilising our in-depth macro and credit research to identify companies with strong climate attributes relative to their peers,” she said.
The flexible equity and bond portfolio seeks to generate a steady income stream with shareholder value stemming from its equity allocation.
The fund is managed by Invesco’s fixed interest team responsible for over £25 billion in AUM, as well as the global equity team that manages over £5 billion in AUM.
They are supported by 22 ESG specialists in the global ESG team, led by Cathrine de Coninck-Lopez and a dedicated ESG risk analyst within the fixed interest team.
Oliver Bilal, head of Emea distribution for Invesco, said: “The Invesco Sustainable Global Income Fund is a perfect addition to our existing range, which includes a global income strategy and an environmental bond strategy.
“We believe the new fund provides a good entry point for investors looking for an investment that supports not only their income goal but who want to invest in companies to support the transition to a low carbon economy,” he added.
The fund has an OCF of 1.02% and is registered across several European regions as well as the UK.
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