The fund aims to deliver a benchmark-like experience but with outperformance over the long term compared with the average return from global equity markets. The MSCI World Index will be referenced for performance measurement purposes only. 

The sub-investment manager, Invesco Quantitative Strategies, which is part of the Invesco Solutions' team, aims to achieve the fund’s investment objective by applying an optimisation process based on value, quality and momentum factors. The IQS proprietary model will assess the attractiveness of equities in a broad universe of liquid large- and mid-capitalisation developed market securities.

“We’ve been managing this Global Enhanced strategy since 2005. For this ETF, just as with the other client accounts using this strategy, we are targeting outperformance of 1 per cent per year compared to the MSCI World Index and a tracking error of 1 to 1.5 per cent. We are also setting maximum active positions for individual stocks, industries, sectors and countries, which is intended to deliver an ‘index-like experience’ for investors,” Erhard Radatz, global head of portfolio management at Invesco Solutions, said.

“We believe this ETF will be attractive for many investors looking for core global equity exposure. With the expansion of our ETF range, investors have the choice between ETFs that are designed to track the performance of an index, whether that’s a standard market-cap weighted or a smart beta benchmark, and funds that seek to deliver enhanced investment outcomes,” Craig Cheesman, head of EMEA ETF product development at Invesco, added.

has also been expanding its ETF range in Europe, most recently with two new indexed exchange-traded funds, classified as Article 8 under the EU’s Sustainable Finance Disclosure Regulation (SFDR): the Franklin S&P 500 Screened UCITS ETF and the Franklin S&P World Screened UCITS ETF.

M&G Investments
has launched the M&G European ex-UK Fund to provide access to Europe's diverse equity markets. The launch comes at a pivotal moment in allocation cycles as global investors reassess biases towards the US and seek to diversify investment strategies.  

The fund will be managed by Richard Halle, an experienced investor in disciplined value strategies, whose team manages more than £5.5 billion in European equities. He will be supported by deputy fund managers, Daniel White and Shane Kelly alongside M&G’s wider global equity team. 

The fund is an actively managed value strategy that invests in inexpensive, out-of-favour European companies with share prices that don’t reflect their true value. Stocks are selected on the basis of their individual merits, through a combination of value-focused screening and qualitative assessment to concentrate on value without sacrificing the strength of the companies in the portfolio. 

"European equities are currently trading at a significant discount to their US counterparts in almost every sector, which is very encouraging for investors,” Richard Halle, manager of the M&G European ex-UK Fund, said. “In a global market dominated by expensive US growth stocks, we are actively identifying compelling opportunities in underappreciated European businesses with good potential. As investor interest refocuses on fundamentals and structural reforms creating a more supportive environment for value investing, now is a very exciting time for investing in Europe.”