Invesco has launched an actively managed multi-factor ETF, with incorporated environmental, social and corporate governance (ESG) criteria.
The Invesco Quantitative Strategies ESG Global Equity Multi-Factor UCITS ETF will invest in an actively managed portfolio of global equities that meet a defined set of ESG criteria. It aims to deliver superior risk-adjusted returns over the long term when compared to global equity markets.
Managed by the Invesco Quantitative Strategies (IQS) team, the fund will be built on a portfolio of global equities that Invesco believes will offer optimised exposure to quality, value and momentum risk factors while also meeting high ESG standards.
The new ETF is the latest addition to the firm’s responsible investments range, and follows the launch in June of three ETFs providing low cost exposure to customised versions of MSCI ESG Universal indices.
IQS has been evolving its factor-based, quantitative investment philosophy since 1983 to adapt to the changing needs of investors. Part of this evolution includes almost 20 years of experience in the implementation of ESG-related strategies.
Gary Buxton, Head of EMEA ETFs at Invesco, believes that the new funds will meet client demand and match the expectations of investors in the current economic climate.
He said: “Three of the biggest trends we have seen over the past decade are growing demand for multi-factor strategies, ESG investments and ETFs more generally. Proven expertise in all these areas has enabled us to respond to investor demand by delivering a multi-factor solution that adheres to strict ESG criteria and has all the benefits you would expect from our ETF structure.”
Commenting on the launch, Manuela von Ditfurth, IQS Senior Portfolio Manager at Invesco, highlighted the ability of the team to measure risk while offering new choices to investors.
He said: “We believe this strategy could appeal to ESG-focused investors who want to capture the potential benefits of an increased exposure to factors and are not tightly constrained to traditional benchmarks. We use a proprietary risk model to manage the sector, country, currency and stock-specific exposures with a view to retain only those risks for which we believe the investor should be rewarded.”
