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Invesco Canada reduces Platform Traded Fund fees

By The IJ Staff | February 26 2018 01:30PM

Photo: Pxhere.com

Invesco Canada announced Feb. 23 that it is making changes to its Platform Traded Funds (PTF) offering. The changes include lower fees and risk rating revisions.

Invesco’s PTFs are designed for fee-based accounts and transact and settle like listed securities or exchange-traded funds. They were developed by Invesco Canada and introduced in 2015.

Invesco says the fixed-rate expense fees on 31 of its PTFs will be reduced. These fixed fees partially cover the operating expenses of the funds. The reductions vary depending on the fund. Most of the PTF funds will see their fixed rate expense fee decline from 0.20 per cent to 0.15 per cent. Some PTFs will see bigger reductions. For example, the Invesco Canadian Bond Fund PTF’s fixed rate expense fee is being lowered from 0.20 per cent to 0.05 per cent and the Trimark Emerging Markets Class from 0.30 per cent to 0.20 per cent.

Invesco also announced that it will reduce the management and advisory fees (MAFs) on seven funds in its lineup.

Fund

Series

Current
management
fee

Reduced
management
fee

Trimark Global Balanced Class

PTF

0.60%

0.55%

Trimark U.S. Companies Class

PTF, PTFU

0.70%

0.55%

Invesco Indo-Pacific Fund

PTF, PTFU

0.80%

0.75%

Trimark Emerging Markets Class

PTF, PTFU

0.80%

0.75%

Trimark Energy Class

PTF

0.80%

0.75%

Trimark Resources Fund

PTF

0.80%

0.75%

Invesco Global Real Estate Fund

PTF, PTFU

0.80%

0.75%

The company's notes that the fee reductions will not be immediately reflected in the published management expense ratio (MER) for any given PTF, since they are based on the fees applied during the previous calculation period. MERs will fully reflect the lower fees on June 30, 2019 for funds with a Dec. 31 year-end, and on March 31, 2019 for funds with a March 31 year-end.

Risk ratings

Invesco Canada also announced that the following risk ratings have been changed:

Fund

Current risk
classification

Revised risk
classification

Invesco Indo-Pacific Fund

Medium to High

Medium

Trimark Resources Fund

Medium to High

High

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