Invesco Ltd. announced the launch of the Invesco MSCI Global Climate 500 ETF (KLMT). KLMT begins trading on the New York Stock Exchange with $1.6 billion in assets from Finnish pension insurer, Varma. Institutional interest in ETFs continues to grow as many large, experienced investors recognize that the unique attributes of an ETF - tax efficiency, liquidity and cost effectiveness - can fill a specific need in their portfolios.

ETFs can often provide liquidity in more nuanced areas of the market that might require expertise to manage efficient exposure, such as, for example, senior loans. But not every ?off-the-shelf? ETF can offer large, experienced investors the precise exposure needed.

KLMT is a great example of Invesco's ability to work with global partners to create a lower-cost, passively managed ETF that meets the exact investment mandate set by Varma. KLMT seeks to track the MSCI ACWI Select Climate 500 Index, which is an index comprised of securities of global companies that meet certain environmental and climate criteria relative to their peers, including a track record of reducing greenhouse gas and carbon emissions. The index is constructed by selecting the constituents from the market capitalization weighted MSCI ACWI ex Select Countries Index.

MSCI and Varma worked together to design the index, to ensure it captures constituents with one or more greenhouse gas emissions reduction targets that fit into Varma's precise investment parameters with respect to energy transition.