Conclusion from November 2020 Review of Index and Invesco Indexing Investable Universe Methodologies

Invesco Indexing recently completed its annual methodology review. Through this exercise, the team considered methodology updates that have the potential to enhance the indexes’ overall representativeness, consistency with expected exposures and outcomes, and investability of constituent securities. In a November 25, 2020 public consultation Invesco Indexing suggested one change to the Invesco Indexing Investable (III) Universe methodology, and no changes to any individual index methodologies.

Invesco Indexing recognizes that methodology changes may have an impact on organizations that use indexes based on the III Universe as the basis of a portfolio, a performance benchmark, or a comparative index for analytical purposes, among other uses. Therefore, the firm sought feedback from its clients on the proposed change to better understand the impact from the viewpoint of various stakeholders. Invesco Indexing actively solicited feedback from clients on the outcome of this methodology review until December 31, 2020.

The consultation period ended today, and Invesco Indexing will implement the change to the treatment of certain Taiwanese securities, as proposed, in the III Universe methodology. This change will be in effect starting with the June 2021 III Universe reconstitution. The details of the change to be implemented can be found below.

As always, the team welcomes any questions or comments at IndexSupport@invesco.com.

Methodology update:
Securities designated as trading via the Altered Trading Method (ATM) on the Taiwan and Taipei Stock Exchanges will be ineligible for III Universe membership.

Kind regards,

Invesco Indexing LLC

 

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