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.
Invesco is a registered business name of Invesco Canada Ltd.
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
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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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Corporations as to their legality or suitability. The product(s)
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THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH
RESPECT TO THE PRODUCT(S).
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
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"Fundamental Index®" and/or "Research Affiliates
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and all associated trademarks are trademarks of Invesco Holding
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© Invesco Canada Ltd., 2018
SOURCE Invesco Canada Ltd.