Invesco AT1 Capital Bond UCITS ETF EUR Hdg Dist

Investment Risks

For complete information on risks, refer to the legal documents. The value of investments, and any income from them, will fluctuate. This may partly be the result of changes in exchange rates. Investors may not get back the full amount invested. The creditworthiness of the debt the Fund is exposed to may weaken and result in fluctuations in the value of the Fund. There is no guarantee the issuers of debt will repay the interest and capital on the redemption date. The risk is higher when the Fund is exposed to high yield debt securities. Changes in interest rates will result in fluctuations in the value of the fund. This fund invests in contingent convertible bonds, a type of corporate debt security that may be converted into equity or forced to suffer a write down of principal upon the occurrence of a pre-determined event. If this occurs, the Fund could suffer losses. Other notable risks of these bonds include liquidity and default risk. 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 might be concentrated in a specific region or sector or be exposed to a limited number of positions, which might result in greater fluctuations in the value of the Fund than for a fund that is more diversified. 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.

Fund components

Asset type

as of 15 Aug 2022 (%)

Country exposure

as of 15 Aug 2022 (%)

Currency

as of 15 Aug 2022 (%)

Credit rating

as of 15 Aug 2022 (%)

Top 10 Exposures as of 15 Aug 2022 (%)

Name ISIN Cusip Weight
Lloyds Banking Group PLC VAR 27/06/71 US539439AG42 539439AG4 2.65%
Nordea Bank Abp VAR 26/09/70 US65559D2A65 65559D2A6 2.42%
Lloyds Banking Group PLC VAR 27/12/70 US539439AU36 539439AU3 2.39%
UniCredit SpA VAR 03/06/71 XS1046224884 T9T20LTJ7 2.32%
Banco Santander SA VAR 08/05/71 XS1951093894 E2R99CQ59 2.27%
NatWest Group PLC VAR 30/09/70 US780097BQ34 780097BQ3 2.25%
Westpac Banking Corp/New Zealand VAR 21/03/71 US96122UAA25 96122UAA2 2.16%
Deutsche Bank AG VAR 30/04/71 US251525AN16 251525AN1 2.03%
Australia & New Zealand Banking Gr VAR 15/12/70 USQ08328AA64 Q08328AA6 1.93%
Societe Generale SA VAR 18/06/71 USF8586CRW49 F8586CRW4 1.85%

Securities lending

 

What is Securities Lending?

Securities Lending is a well-established and tightly regulated practice involving the short-term transfer (loan) of securities. The objective is to enhance the ETF’s overall performance.

When a security is loaned, the borrower (who has been approved by Invesco and the Lending Agent) provides collateral and pays an agreed fee for the duration of the loan. Collateral is an asset that a lender accepts as security for a loan. If the borrower defaults on the loan payments, the lender can seize the collateral and resell it to recoup its losses.

 

How much revenue goes to the ETF?

The ETF will receive 90% of the revenue arising from securities lending, with the remaining 10% deducted by the Lending Agent, Bank of New York Mellon (BNY Mellon), for its fees and to cover direct and indirect operational costs. Invesco will not receive any revenue from the programme.

Risks to consider
Securities lending involves certain risks that an investor should consider, including:

  • The risk of the borrower defaulting on its obligation to return the securities at the end of the loan period, and
  • The risk of the ETF being unable to sell the collateral provided to it if the borrower defaults.

To mitigate these risks, the ETF benefits from a “borrower default indemnity” provided by the Lending Agent, BNY Mellon. The indemnity allows for full replacement of the securities loaned if the collateral does not cover the value of the securities in the event of a borrower default.

To find out more view the Invesco ETFs Securities Lending document in our Documents section.

Securities lending information

Percentage revenue retained by the fund 90%
Maximum amount of fund assets that can be loaned 30%
Maximum amount of any single security that can be loaned 90%
Average amount on loan (30 Jun 2022) 5.91%
Securities lending return (30 Jun 2022) 0.0292%

Average amount on loan is the average percentage of the fund’s assets that were on loan over the previous 12 month period.

Securities lending return is the net securities lending revenue earned over the previous 12 month period, expressed as an annualised percentage return over the fund’s average AUM over the same period.

Assets on Loan

as of 30 Jun 2022 (%)

Collateral Held by Asset Type

as of 1 Aug 2022 (%)

Collateral Held by Country

as of 1 Aug 2022 (%)

Collateral Held by Currency

as of 1 Aug 2022 (%)

Value of Collateral Held

as of 15 Aug 2022 (%)

Top 10 Collateral Exposures as of 15 Aug 2022

Name Cusip ISIN Weight
UNITED STATES TREASURY NOTE 91282CBB6 US91282CBB63 5.40%
UNITED STATES TREASURY NOTE 91282CAH4 US91282CAH43 3.10%
UNITED STATES TREASURY BOND 912810SH2 US912810SH23 2.70%
GOVERNMENT OF THE U 912810RQ3 US912810RQ31 2.50%
GOVERNMENT OF THE U 91282CDC2 US91282CDC29 2.40%
BUNDESREPUBLIK DEUT 15/08/52 BR2469814 DE0001102572 2.40%
BUNDESREPUBLIK DEUT 15/08/30 ZO2919926 DE0001030708 2.30%
BUNDESREPUBLIK DEUT VAR 15/04/23 EJ0993182 DE0001030542 2.30%
BUNDESREPUBLIK DEUT EJ3422718 DE0001135499 2.30%
Other N/A N/A 75.00%

Key information

Bloomberg ticker XAT1 GY
ISIN IE00BFZPF439
Benchmark BBG ticker IBXXC1D3
Management fee 0.39%
NAV (15 Aug 2022) €18.06
AUM €1,258,927,184
Base currency EUR
Securities lending Yes
Umbrella AUM (15 Aug 2022) €11,183,305,733

ESG Profile

(Fund 15 Aug 2022)

ESG Rating (AAA-CCC) AAA
Quality Score (0-10) 10.00
Carbon Intensity 3.40

Source: MSCI ESG Research. For more information on the ESG profile, see the ESG section on this product page. Carbon intensity is the weighted average carbon intensity (Tons CO2e/$million sales).

Costs may increase or decrease as result of currency and exchange rate fluctuations. Consult the legal documents for further information on costs.

The investment concerns the acquisition of units in a fund and not in a given underlying asset.

The iBoxx USD Contingent Convertible Liquid Developed Market AT1 (8/5% Issuer Cap) referenced herein is the property of Markit Indices Limited and is used under license. The funds or securities referred to herein are not sponsored, endorsed, or promoted by Markit Indices Limited.

The performance information on this web page refers to past performance. Past performance is not a reliable indicator of future returns.

The data shown on this page is not real-time, i.e. it may be delayed due to mandatory requirements of the data provider. As a consequence, the price of the product linked to a specific underlying you are quoted by your broker or intermediary may substantially differ from the price of the product that you would expect on the basis of the data displayed on this site. Invesco accepts no responsibility for loss, however caused, resulting from errors in this data.

ETF performance is in the fund’s base currency, includes dividends, reinvested. ETF performance is Net Asset Value after management fees and other ETF costs but does not consider any commissions or custody fees payable when buying, holding or selling the ETF. The ETF does not charge entry or exit fees. Data: Invesco.