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 |
Reduced |
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 |
Revised risk |
Invesco Indo-Pacific Fund |
Medium to High |
Medium |
Trimark Resources Fund |
Medium to High |
High |