ETFs
Invesco launches fixed maturity bond ETFs in Europe
Stay informed with free updates
Simply sign up to the myFT Digest of Exchange Traded Funds, delivered straight to your inbox.
Latest news on ETFs
Visit our ETF Center to learn more and explore our in-depth data and comparison tools
Invesco has rolled out its first fixed-maturity bond exchange-traded funds aimed at European investors, joining the likes of BlackRock, DWS and Amundi in offering similar products.
The US asset manager’s initial UCcits offering of this type consists of five strategies providing exposure to dollar-denominated investment grade corporate bonds.
The new Irish-domiciled Invesco BulletShares ETFs are available with maturity dates ranging from 2026 to 2030. They have been listed in London, Milan and Zurich.
According to the New York-listed asset manager, the products target investors looking to “take advantage of today’s high yields and perhaps looking to tailor their portfolio maturity profile or income stream.” .
This article was previously published by Set Europe on firea title belonging to the FT group.
ETFs are available with accumulation and distribution share classes and charge an annual fee of 0.1 percent.
The products, which track all Bloomberg benchmarks, invest in securities with a face amount of at least $300 million and an effective maturity within the final year following the ETFs’ fixed maturity date.
Issuers involved in “certain controversial business activities” or facing “serious controversy” relating to an environmental, social and governance matter are excluded from the indices.
Gary Buxton, head of ETF and index strategies for Europe, Middle East and Africa at Invesco, said: “Institutional investors often employ a strategy where they construct a portfolio of bonds that produces a flow income that closely matches their liabilities. He added that the new ETFs provide all investors with “the tools needed to create a similar strategy but with the added benefits of greater diversification as well as the transparency and commercial efficiency of an ETF structure.” .
“These ETFs could help pension funds meet their commitments, but would also provide a simple and inexpensive solution for parents who need to plan for school fees or for those saving for a home,” he said. he declared.
Paul Syms, head of Emea bond and commodities ETF product management at the manager, said investors could use ETFs “for longer-term financial planning through so-called bond laddering “.
*Ignites Europe is a news service published by FT Specialist aimed at professionals working in the asset management sector. Trials and subscriptions are available at igniteseurope.com.