On June 3, 2021 US Presidential Executive Order 14032 was issued concerning sanctions imposed on certain Chinese companies. The new Executive Order entirely replaces and supersedes the prior Executive Order 13959 issued on November 12, 2020 regarding this topic.
The full text of the new Executive Order can be found here: https://home.treasury.gov/system/files/126/eo_cmic.pdf
After internal analyses and careful consideration, Invesco Indexing will exclude all securities issued by the companies covered in the new Executive Order from all equity and fixed income indexes licensed by clients for the purpose of using the index as the basis of an invested portfolio. Further, in accordance with the new Executive Order, Invesco Indexing will no longer exclude the subsidiaries of sanctioned companies and any subsidiaries previously removed will be eligible for consideration as an index constituent at the next rebalance of the respective index subject to that index’s construction methodology. These changes will be effective July 30, 2021 for all affected equity indexes and will be effective with the regularly scheduled July 2021 fixed income index rebalances.
For any questions, please reach out to a member of the Client Engagement Team at IndexSupport@invesco.com.