Invesco Global Corporate Bond ESG Climate Transition UCITS ETF GBP PfHdg DistIndex, costs, backtest, listings and taxation

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Investment objective: The objective of the Fund is to provide exposure to the performance of global investment grade corporate bonds, whilst seeking to increase exposure to issuers that demonstrate a robust ESG profile. Investment approach: The Fund is a passively managed ETF. To achieve the investment objective the Fund will seek to replicate the total return performance of the Bloomberg MSCI Global Liquid Corporate Climate Transition ESG Bond Index (the "Index"), less fees, expenses and transaction costs. The Fund will employ sampling techniques to select securities in the Index which may include but are not limited to index weighted average duration, industry sectors, country weights, liquidity and credit quality. The use of the sampling approach will result in the Fund holding a smaller number of securities than are in the underlying Index. The Fund may use derivative instruments for the purposes of managing risk, reducing costs, generating additional capital or income. The Fund may engage in securities lending, whereby 90% of the revenues arising from securities lending will be returned to the Fund and 10% of the revenues will be retained by the securities lending agent. The Fund may be exposed to the risk of the borrower defaulting on its obligation to return the securities at the end of the loan period and of being unable to sell the collateral provided to it if the borrower defaults. The Fund is an Article 8 Fund (it promotes environmental and/or social characteristics) for the purposes of Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability‐related disclosures in the financial services sector ("SFDR"). The Fund’s base currency is USD. The portfolio-hedged Share Class currency is GBP. To minimise exposure to fluctuations in the exchange rate between the portfolio-hedged Share Class’ currency and the base currencies of the Fund’s underlying holdings, the portfoliohedged Share Class enters into foreign exchange transactions (typically FX forwards). Currency hedging between the base currency of the Fund and the currency of the share class may not completely eliminate the currency risk between those two currencies and may affect the performance of the share class. The Index: The Index is designed to reflect the performance of global investment grade, fixedrate, taxable debt securities issued by corporate issuers across developed markets, adjusted in accordance with certain ESG metrics which seek to increase the overall exposure of the Index to those issuers demonstrating a robust ESG profile, whilst meeting the minimum standards for EU Climate Transition Benchmarks. It includes publicly issued securities by industrial, utility and financial institution issuers in global and regional markets. The securities will be rated investment grade at the time of inclusion in the Index, as determined by the index provider. Securities’ principal and interest must be denominated in currencies that have at least USD200bn in total issuance (currently, the eligible securities are USD, EUR, GBP and CAD). Only securities with at least one year to final maturity (i.e. the time until they become due for repayment) and minimum outstanding par amounts as determined by the index provider, are included in the Index. Securities are excluded that, according to the index provider’s exclusionary criteria:1) have an MSCI ESG rating below BBB; 2) have faced very severe controversies pertaining to ESG or environmental issues over the last three years; 3) are issued by an issuer that is not covered by MSCI ESG Research; or 4) are involved, as per the standard Bloomberg MSCI SRI methodology, in business activities which are deemed to have adverse impacts from an ESG standpoint; 5) are issued by emerging market issuers. Involvement and revenue thresholds are defined by the Index provider. Further information in relation to any revenue thresholds and controversy scoring criteria, can be obtained from the Index provider’s website. The index provider then re-weights eligible securities to minimise the difference in constituent, sector and industry weights to the parent index, Bloomberg Global Aggregate Corporate Index, while achieving: 1) alignment with the minimum standards for EU Climate Transition Benchmarks; and 2) an uplift in MSCI ESG Score against the parent index. The Index is rebalanced on a monthly basis. This document provides a summary of the principal features of the Index, the complete description of the Index (available from the Index provider) shall at all times prevail. Investors should note that the Index is the intellectual property of the Index provider. The Fund is not sponsored or endorsed by the Index provider and a full disclaimer can be found in the Fund’s supplement. Dividend Policy: This Share Class declares and distributes a dividend on a quarterly basis.

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Redemption and Dealing of Shares:The Fund's shares are listed on one or more Stock Exchange(s). Investors can buy or sell shares daily through an intermediary directly or on Stock Exchange(s) on which the shares are traded. In exceptional circumstances investors will be permitted to redeem their shares directly from the Umbrella Fund in accordance with the redemption procedures set out in the prospectus, subject to any applicable laws and relevant charges.

Intended Retail InvestorThe Fund is intended for informed investors aiming for income and long term capital growth, who have specific knowledge or experience of investing in similar products and financial markets, have a risk appetite and an investment horizon consistent with the risk indicator displayed below and understand that there is no capital guarantee or protection (100% of capital is at risk). Practical Information Fund Depositary: The Bank of New York Mellon SA/NV, Dublin Branch, Riverside Two, Sir John Rogerson’s Quay, Grand Canal Dock, Dublin 2, D02 KV60, Ireland. Find out more: This document is specific to the Fund. Further information about the Fund can be obtained from the supplement, the prospectus, annual and interim reports. The prospectus, annual and interim reports are prepared for the Umbrella Fund, of which the Fund is a sub-fund. These documents are available free of charge in English. They can be obtained along with other information, such as share prices, at https://etf.invesco.com (select your country and navigate to the Documents section on the product page), or by calling +353 1 439 8000. The assets of the Fund are segregated as a matter of Irish law and as such, in Ireland, the assets of one sub-fund will not be available to satisfy the liabilities of another sub-fund. This position may be considered differently by the courts in jurisdictions outside of Ireland. Subject to satisfying certain criteria as set out in the prospectus, investors may be able to exchange their investment in the Fund for shares in another sub-fund of the Umbrella which is being offered at that time.

GBEG is hedged to GBP; the index the issuer places next to it in its documents is the unhedged, foreign-currency version. Subtracting one from the other does not measure replication quality: it measures the exchange rate. In a year when the currency moves 5%, “the TD” would come out near 5 points — a plausible-looking number, with decimals, and wrong.

Other sites publish that number. We would rather show one figure less than one figure wrong: the TD will return here the day we have the GBP-hedged index series, which the issuer does not publish today.

What tracking difference is and how we compute it →

Dividends

ETFs declaring the same index