- Largest ETF Launch Funding: Finnish pension insurer Varma’s $2.4 billion investment sets a global record for new ETF launches.
- Focused Climate Strategy: The ETF targets North American companies aligned with greenhouse gas and carbon reduction goals.
- Collaborative Customization: Developed in partnership with MSCI, the ETF aligns with institutional climate-focused investment needs.
Invesco Unveils Climate-Focused ETF
Invesco Ltd. has launched the Invesco MSCI North America Climate ETF (KLMN), which debuted on the New York Stock Exchange with $2.4 billion in assets from Finnish pension insurer Varma. This investment marks the largest funding for a new ETF globally.
“This launch allows Varma to execute a large allocation aligned with their investment views,” said Brian Hartigan, Invesco’s Global Head of ETFs & Index Investments.
The ETF is designed to track the MSCI Global Climate 500 North America Selection Index, targeting companies that meet strict environmental and climate criteria.
A Growing Market for Thematic ETFs
Thematic ETFs, like KLMN, are gaining traction among institutional investors seeking cost-effective, targeted allocations. The U.S.-listed thematic ETF market now exceeds $439 billion in assets under management.
“Our record-breaking $2.4 billion investment aligns with our focus on responsible investing and precise geographical allocations,” said Timo Sallinen, Varma’s Head of Listed Securities.
Related Article: Invesco Launches $1.6B MSCI Global Climate 500 ETF with Varma
Strategic Collaboration
The ETF and its underlying index were developed collaboratively by Invesco, MSCI, and Varma. The MSCI-designed index ensures alignment with Varma’s climate-focused investment strategy.
“This launch highlights how custom indexes can support the unique views of large institutional investors,” said Christine Berg, MSCI’s Head of Americas Index.
The launch of KLMN underscores the rising demand for innovative investment products that combine environmental stewardship with institutional efficiency, solidifying Invesco’s leadership in the ETF market.
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