Invesco Launches the Invesco MSCI Global Climate 500 ETF (KLMT)


New sustainable energy ETF lists with US$1.6 billion invested by Finnish pension insurer Varma at launch

ATLANTA, June 27, 2024 /PRNewswire/ — Invesco Ltd. (NYSE: IVZ), a leading global asset management firm, announced today the launch of the Invesco MSCI Global Climate 500 ETF (KLMT). KLMT begins trading on the New York Stock Exchange with $1.6 billion in assets from Finnish pension insurer, Varma.

“The launch of KLMT is clear indication that sophisticated institutions are increasing their usage of ETFs for a variety of functions. We are excited to collaborate with MSCI to address the needs of one such investor and provide Varma with a US ETF that offers the precise strategy needed for their portfolio,” says Brian Hartigan, Global Head of ETFs & Indexed Investments. “Invesco is one of the few global asset managers capable of servicing clients who want customizable, cross-regional ETFs for exacting exposures.”

Institutional interest in ETFs continues to grow as many large, experienced investors recognize that the unique attributes of an ETF – tax efficiency, liquidity and cost effectiveness – can fill a specific need in their portfolios. ETFs can often provide liquidity in more nuanced areas of the market that might require expertise to manage efficient exposure, such as, for example, senior loans.  But not every “off-the-shelf” ETF can offer large, experienced investors the precise exposure needed. KLMT is a great example of Invesco’s ability to work with global partners to create a lower-cost, passively managed ETF that meets the exact investment mandate set forth by Varma.

“We are very pleased to work alongside Invesco, one the world’s biggest asset managers, and MSCI, a leading global index provider, to create an ETF tailored to Varma’s systematic investment preferences,” says Timo Sallinen, Varma’s Head of Listed Securities.  “Our $1.6 billion investment in KLMT will help us meet our principles for responsible investing and gives us more flexibility for investing our €61 billion assets.”

KLMT seeks to track the MSCI ACWI Select Climate 500 Index, which is an index comprised of securities of global companies that meet certain environmental and climate criteria relative to their peers, including a track record of reducing greenhouse gas and carbon emissions.  The index is constructed by selecting the constituents from the market capitalization weighted MSCI ACWI ex Select Countries Index. MSCI and Varma worked together to design the index, to ensure it captures constituents with one or more greenhouse gas emissions reduction targets that fit into Varma’s precise investment parameters with respect to energy transition.

“We are excited that Varma and Invesco have chosen the MSCI ACWI Select Climate 500 Index as the benchmark for the new Invesco MSCI Global Climate 500 ETF,” said Christine Berg, Head of Client Coverage, Americas at MSCI. “This is a great example of how custom indexes can be used to support the unique views of large institutional investors.”

Varma’s investment experience may not be representative of other customers’ investment experience and is not a guarantee of future performance or success.

About Invesco Ltd.
Invesco Ltd. (TickerNYSE: IVZ) is a global independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. With offices in more than 20 countries, our distinctive investment teams deliver a comprehensive range of active, passive and alternative investment capabilities. Invesco managed US $1.7 trillion in assets on behalf of clients worldwide as of March 31, 2024. For more information, visit www.invesco.com/corporate.

Invesco Distributors, Inc. is the U.S. distributor for Invesco Ltd.’s products and is a wholly owned, indirect subsidiary of Invesco Ltd.

About Risk
There are risks involved with investing in ETFs, including possible loss of money. Shares are not actively managed and are subject to risks similar to those of stocks, including those regarding short selling and margin maintenance requirements. Ordinary brokerage commissions apply.

The Fund’s return may not match the return of the Underlying Index. The Fund is subject to certain other risks. Please see the current prospectus for more information regarding the risk associated with an investment in the Fund.

Unlike many investment companies, the Fund does not utilize an investing strategy that seeks returns in excess of its Underlying Index. Therefore, the Fund would not necessarily buy or sell a security unless that security is added or removed, respectively, from its Underlying Index, even if that security generally is underperforming. 

Stocks of medium-sized companies tend to be more vulnerable to adverse developments, may be more volatile, and may be illiquid or restricted as to resale.

The risks of investing in securities of foreign issuers, including emerging market issuers, can include fluctuations in foreign currencies, political and economic instability, and foreign taxation issues.

Stocks of companies with favorable Environmental, Social and Governance (ESG) attributes may underperform the market as a whole. As a result, the Fund may underperform other funds that do not screen companies based on ESG attributes. The criteria used to select companies for investment may result in the Fund investing in securities, industries or sectors that underperform the market as a whole or underperform other funds screened for ESG standards. 

Investments focused in a particular industry are subject to greater risk, and are more greatly impacted by market volatility, than more diversified investments.

The performance of an investment concentrated in issuers of a certain region or country is expected to be closely tied to conditions within that region and to be more volatile than more geographically diversified investments.

Financial information related to foreign securities may be less reliable. Market quotations may not be readily available for some securities, and those securities may be fair valued which may be different than if the security had been valued using market quotations. There is no assurance that the Fund could sell a security for the value established for it at any time. 

The Fund is non-diversified and may experience greater volatility than a more diversified investment. 

Because the Fund’s NAV is determined in U.S. dollars, the Fund’s NAV could decline if the currency of a non-U.S. market in which the Fund invests depreciates against the U.S. dollar.

Since ordinary brokerage commissions apply for each buy and sell transaction, frequent trading activity may increase the cost of ETFs.

Invesco does not offer tax advice. Please consult your tax adviser for information regarding your own personal tax situation.

Invesco Ltd. is not affiliated with Varma or MSCI.

Before investing, investors should carefully read the prospectus and/or summary prospectus and carefully consider the investment objectives, risks, charges and expenses. For this and more complete information about the fund(s), investors should ask their advisors for a prospectus/summary prospectus or visit invesco.com/fundprospectus.

Invesco Distributors, Inc.     06/24       3652347

NOT A DEPOSIT l  NOT FDIC INSURED  l  NOT GUARANTEED BY THE BANK  |  MAY LOSE VALUE  |  NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY

Contact: Stephanie Diiorio, stephanie.diiorio@invesco.com, 212.278.9037

SOURCE Invesco Ltd.

Published on June 27, 2024

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