Invesco Canada proposes changes to mutual fund lineup

By The IJ Staff | May 28 2018 09:45AM


Invesco Canada has proposed a number of changes to its mutual fund product lineup, including fee reductions.

Among these proposals is a change to the investment objectives of Invesco Advantage Bond Fund, to allow for a global multi-sector approach, said the company in a statement issued May 25. This approach would allow increased diversification across four broad asset classes: global investment-grade credit; global high-yield credit; emerging-markets debt; and bank loans. This change is subject to securityholder approval. If approved, the fund will be renamed as Invesco Active Multi-Sector Credit Fund, effective July 27, 2018.

Invesco also plans to make changes to the investment strategy for its Invesco Canadian Bond Fund. “The goal will be to enhance the investment strategy to allow for a "core plus" approach, which includes an allocation to high-yield and non-traditional fixed-income securities, such as floating-rate loans and emerging-market bonds,” says the company.

The funds will be renamed Invesco Canadian Core Plus Bond Fund and Invesco Canadian Core Plus Bond Class, respectively, says the company. These changes will be effective June 8, 2018.

Fee reductions

Invesco also plans to reduce the management and advisory fee (MAF) of Invesco Canadian Bond Fund, Series F from 0.65 per cent to 0.50 per cent and Series PF from 0.50 per cent to 0.45 per cent. In addition, the MAF of Invesco Short-Term Bond Fund, Series F will be reduced from 0.65 per cent to 0.40 per cent. Fee reductions will be effective at the close of business June 8, 2018.

Invesco has also proposed to change the investment objective of the following four PowerShares Funds: PowerShares 1-5 Year Laddered Corporate Bond Index Fund; PowerShares Canadian Dividend Index Class; PowerShares Canadian Preferred Share Index Class and PowerShares FTSE RAFI Canadian Fundamental Index Class.

“The changes are expected to result in increased trading efficiency as the portfolio management team can invest in the Invesco ETF that tracks each Fund's respective index, rather than buying and selling underlying securities that are components of each index,” says the company. These changes are also subject to securityholder approval.