Introducing global multi-sector credit and Canadian "core plus" strategies
TORONTO, May 25, 2018 /CNW/ - Invesco Canada today proposed changes and fee reductions to enhance its product lineup for advisors and investors.
Invesco Advantage Bond Fund
Among the proposals is a change to the investment objectives of Invesco Advantage Bond Fund, to allow for a global multi-sector approach. This will permit the Fund to better leverage the Invesco Fixed Income (IFI) team's global depth and sector expertise.
The multi-sector approach will provide for increased diversification across four broad asset classes: global investment-grade credit; global high-yield credit; emerging-markets debt; and bank loans. The strategy aims to provide a positive total return over a full market cycle through security selection, strategic and tactical asset allocation and a disciplined risk management process applied to global credit-related debt securities.
This change is subject to securityholder approval and a securityholder meeting will be held at Invesco's offices in Toronto on July 17, 2018.
Further details will be provided to investors in a proxy package that will be mailed in June and in a management information circular that will be available online.
If the proposal is approved, the fund will be renamed as Invesco Active Multi-Sector Credit Fund, effective at the close of business, July 27, 2018.
As a result, Michael Hyman, Matthew Brill, Rashique Rahman and Jason Trujillo will join the portfolio management team of the Fund. They join existing team members Joseph Portera, Jennifer Hartviksen, Avi Hooper and Ken Hill.
Invesco Canadian Bond Fund/Class
Invesco will be making changes to the investment strategy for 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.
At the same time, the Funds will be renamed Invesco Canadian Core Plus Bond Fund and Invesco Canadian Core Plus Bond Class, respectively. There are no changes to the portfolio management team for Invesco Canadian Bond Fund or Invesco Canadian Bond Class.
"Core" fixed-income securities typically include government bonds and investment-grade corporate bonds. These securities are primarily from developed markets and of high credit quality. "Plus" fixed-income securities typically include bonds or loans that have higher credit risk, such as high-yield bonds, floating-rate loans, and emerging-market bonds.
Combining the "core" and "plus" fixed-income securities in a portfolio can help the portfolio to achieve a higher expected return for a similar level of risk compared to a portfolio comprised solely of "core" fixed-income securities. The diversification benefit of the "core plus" approach can help enhance the fund's risk/return profile.
These changes will be effective at the close of business June 8, 2018.
Fee reductions
Invesco will reduce the management and advisory fee (MAF) of Invesco Canadian Bond Fund, Series F from 0.65% to 0.50% and Series PF from 0.50% to 0.45%. In addition, the MAF of Invesco Short-Term Bond Fund, Series F will be reduced from 0.65% to 0.40%. All fee reductions will be effective at the close of business June 8, 2018.
PowerShares Funds
Invesco has proposed changing 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
- 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.
This change will provide an operationally efficient means of tracking the performance of each Fund's respective index.
These changes are subject to securityholder approval and a securityholder meeting will be held at Invesco's offices in Toronto on July 17, 2018.
Further details will be provided to investors in a proxy package that will be mailed in June and in a management information circular that will be available online.
If the proposal is approved, the new investment objectives will be effective at the close of business, July 27, 2018.
For more information, please visit invesco.ca. You can also connect with Invesco on Twitter (@InvescoCanada), LinkedIn, Facebook, or through the Invesco Canada blog.
About Invesco Ltd.
Invesco Ltd. is an independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. NYSE: IVZ; invesco.com.
Commissions, trailing commissions, management fees and expenses may all be associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Please read the simplified prospectus before investing. Copies are available from your advisor or Invesco Canada Ltd.
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Invesco Fixed Income (IFI) is a unit comprising Invesco Senior Secured Management, Inc. of New York, U.S.; Invesco Advisers, Inc. of Atlanta, U.S.; Invesco Asset Management Ltd. of London, U.K.; and Invesco Canada Ltd. of Toronto, Canada.
FTSE TMX Global Debt Capital Markets Inc. ("FTDCM"), FTSE International Limited ("FTSE"), the London Stock Exchange Group companies (the "Exchange") or TSX Inc. ("TSX" and together with FTDCM, FTSE and the Exchange, the "Licensor Parties"). The Licensor Parties make no warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE TMX Canada Investment Grade 1-5 Year Laddered Corporate Bond Index, ("the Index") and/or the figure at which the Index stands at any particular time on any particular day or otherwise. The Index is compiled and calculated by FTDCM and all copyright in the Index values and constituent lists vests in FTDCM. The Licensor Parties shall not be liable (whether in negligence or otherwise) to any person for any error in the Index and the Licensor Parties shall not be under any obligation to advise any person of any error therein.
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Investors should be aware of the risks associated with data sources and quantitative processes used in our investment management process. Errors may exist in data acquired from third party vendors, the construction of model portfolios, and in coding related to the Index and portfolio construction process. While Research Affiliates takes steps to identify data and process errors so as to minimize the potential impact of such errors on Index and portfolio performance, we cannot guarantee that such errors will not occur.
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© Invesco Canada Ltd., 2018
SOURCE Invesco Canada Ltd.
Aysha Mawani, Vice President, Corporate Affairs, Tel: 416.324.7712, [email protected]
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