Invesco has switched its ESG data provider on its global equity multi-factor ETF after the closure of its previous supplier Moody’s Corporation.
The $350m Invesco Quantitative Strategies ESG Global Equity Multi-Factor UCITS ETF (IQSA) will switch from using Moody’s ESG data to MSCI.
In a shareholder notice, Invesco added: “The implementation of this change will result in a one-off increase in the fund’s 12-month portfolio turnover of approximately one third. There will be no change to the investment strategy implemented.”
The transition will take effect no later than the first half of 2025.
The changes come as Moody’s Corporation announced it would close its ESG Solutions business after entering into a partnership with MSCI on 1 July.
IQSA is actively managed with stocks selected based on ESG criteria and factors which include momentum, quality and value.
Invesco’s ESG ETFs have undergone various methodology tweaks so far this year, including the metrics on its Paris-Aligned Benchmark (PAB) ETF range tightening following an MSCI methodology update.
Additionally, Invesco reclassified five PAB ESG ETFs from Article 8 to Article 9 under the Sustainable Finance Disclosure Regulation in April, after the European Commission’s clarification that funds adhering to PAB can be classified under Article 9 last year.