The latest news in investment offers, financial products and other services relevant to wealth advisors and their clients.

Invesco
US-headquartered investment manager Invesco is launching an exchange-traded fund (ETF) that aims to track (minus fees) a version of the S&P 500 index, aligned with meeting a 1.5°C limit on climate warming, using a forward-looking transition pathway model.

The Invesco S&P 500 CTB Net Zero Pathway ESG UCITS ETF incorporates Trucost’s Transition Pathway data in the forward-looking element of S&P’s index methodology, a key factor when considering mitigating climate risks and greater exposure to opportunities in the transition towards decarbonisation. The ETF is classified as an Article 8 fund under the EU’s Sustainable Financial Disclosure Regulation (SFDR), the firm said in a statement.

The Invesco ETF aims to physically replicate the S&P 500 Climate Transition Base Pathway-Aligned ESG Index (minus fees), which has stricter ESG exclusions than the minimum Climate Transition Benchmark (CTB) requirements, the firm continued. This index is constructed from the parent S&P 500 index by excluding securities that are involved in tobacco, controversial weapons, oil sands, small arms, military contracting or thermal coal; do not comply to the UN Global Compact principles; or are not covered by the index provider’s ESG data solution.

This fund, which is Invesco’s first ETF constructed to follow a CTB index, expands the range of ESG equity and fixed income ETFs which the firm now makes available to its investors. Others in the 34-strong range include ETFs following Paris-Aligned Benchmark (PAB) indices, more targeted thematic exposures to clean energy technologies and actively managed ESG strategies. 

“We believe our new ETF offers investors the potential for closer tracking and a more representative path towards decarbonisation,” Gary Buxton, head of EMEA ETFs and indexed strategies at Invesco, said.

Capital Group
US investment manager Capital Group, which has over £2.1 trillion ($2.6 trillion) in assets under management, has launched the Capital Group UK – Global Corporate Bond Fund (GCB), an open-ended investment company (OEIC) for UK investors.

GCB OEIC mirrors the investment approach and management team of its Luxembourg-domiciled UCITS counterpart, Capital Group Global Corporate Bond Fund (LUX), which has outpaced its reference index over the past five years.

GCB invests mainly in investment-grade (IG) bonds globally and is focused on providing a high level of total return over the long term, the firm said in a statement. This approach offers UK investors market diversification and potential long-term stability through high-quality credit exposure.

“In our view, this is one of the most exciting times for fixed income investing in 20 years. Yields appear to be at their peak, signalling the potential for strong returns. Fixed income now looks highly attractive and could provide a good balance of income and capital preservation,” Damir Bettini, global corporate bond fund portfolio manager, said. 

“Investment-grade corporate bonds are key to a diversified fixed income portfolio and could provide attractive risk-adjusted returns. A global approach offers broader yield, risk, and return sources compared to regional strategies. Allocating to global IG corporate bonds can potentially enhance returns and reduce volatility through diversification,” Bettini continued.

"We are witnessing a growing demand among our clients for global investment solutions, particularly in high-quality corporate bonds,” Chris Miles, head of UK client group at Capital Group, added.

ARC Research
ARC Research, a UK provider of peer group performance analytics, is launching ARC Managed Platform Solutions (MPS) Indices to give financial advisors clarity on the performance of MPS managers. 

The new indices, to be launched in the second quarter of 2025, will include model portfolios on advisor platforms together with funds that mirror MPS strategies. They will be free to access by independent financial advisors (IFAs), the firm said in a statement.

Over the past 20 years, the ARC Research Private Client Indices (PCI) have become the benchmark for the private wealth industry in understanding investment performance, the firm added. Using its expertise in performance analytics, it is following suit with “robust and trusted” MPS Indices for financial advisors – building a universal-standard comparator index series for MPS solutions.

The new index launch coincides with the continued growth of the MPS market, driven by evolving client demands and changing market dynamics. While growth in assets predates Consumer Duty, recent regulations and increasingly competitive fee pressures have accelerated adoption. The new MPS Indices will give IFAs a more accurate and appropriate reflection of a solution’s performance against its peers, the firm continued.

The new indices will be asset allocation-based rather than risk-based as is the case with ARC PCI – advisors want to look at expected outcomes based on an asset allocation. The indices will be net of manager fees based on the most used platform. Existing members of ARC data contributors submitting model portfolios will be transferred to the MPS Indices for the first quarter of 2025, the firm said.