KLMN breaks global record by launching with US$2.4 billion invested by Finnish pension
insurer Varma
ATLANTA, Dec. 12,
2024 /PRNewswire/ -- Invesco Ltd. (NYSE: IVZ), a
leading global asset management firm, announced the launch of the
Invesco MSCI North America Climate ETF (KLMN). KLMN began trading
on the New York Stock Exchange with US$2.4
billion in assets from Finnish pension insurer, Varma, which
breaks a worldwide record by surpassing the funding of any previous
new ETF launch globally.
"We are excited to collaborate once again with MSCI and Varma on
a newly developed index and ETF that will allow Varma to easily
execute a large allocation that aligns precisely with their
investment views," says Brian
Hartigan, Global Head of ETFs & Index Investments.
"Invesco is in a rare position to service global, institutional
clients who want to leverage the liquidity and efficiency of ETFs
to target important allocations in their investment
portfolios."
US listed thematic ETFs currently make up over US$439 billion in assets under management
(AUM)1 and the category continues to see growth both
domestically and internationally. Themes like greenhouse gas and
carbon emissions reductions that are targeted by KLMN's index can
be useful to institutional clients who are looking to express large
positions through a flexible and cost-effective allocation.
"I am grateful to work with MSCI, a leading global index
provider, as well as Invesco, one of the world's largest asset
managers, to break new ground on the launch of KLMN," says
Timo Sallinen, Varma's Head of
Listed Securities. "Our record-breaking $2.4
billion investment in the North American tilt of KLMN aligns
with our investment in the global KLMT ETF, which launched earlier
this year, to provide us with a flexible way to allocate to our
precise geographical and responsible investing needs."
KLMN seeks to track the MSCI Global Climate 500 North America
Selection Index, which is an index that selects North American
companies from the MSCI ACWI Select Climate 500 Index, the parent
index. The index is constructed by weighting the selected
constituents in proportion of their weights in the parent index,
with an aim to include companies that meet certain environmental
and climate criteria relative to their peers. MSCI designed the
index with input from Varma to align with Varma's investment
parameters.
"We are pleased to collaborate with both Varma and Invesco to
deliver an index for this ETF," said Christine Berg, Head of Americas Index at MSCI.
"The launch truly demonstrates 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. (Ticker NYSE: IVZ) is a global independent
investment management firm dedicated to delivering an investment
experience that helps people get more out of life. Our distinctive
investment teams deliver a comprehensive range of active, passive
and alternative investment capabilities. With offices in more than
20 countries, Invesco managed US$1.8
trillion in assets on behalf of clients worldwide as of
September 30, 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.
MSCI Global Climate 500 North America Selection Index selects
constituents of the MSCI ACWI Select Climate 500 Index, which are
also constituents of MSCI North America Index. The parent index is
designed to support investors seeking to reduce their exposure to
the greenhouse gas emissions and increase exposure to companies
with their emission reduction targets approved by Science Based
Targets initiative (SBTi) through an important optimization
process.
1 AUM of US Listed Thematic ETFs, Bloomberg,
December 1, 2024
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.
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.
The Fund is non-diversified and may experience greater
volatility than a more diversified investment.
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.
NA4069991 11/24
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
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SOURCE Invesco Ltd.