ATLANTA, Nov. 9, 2020 /PRNewswire/ -- Invesco Ltd.
(NYSE: IVZ), a leading global provider of exchange-traded funds
(ETFs), announced today that it has reached the final regulatory
stage in it its effort to build its own active non-transparent ETF
model. The U.S. Securities and Exchange Commission (SEC) has
published a notice regarding Invesco's exemptive application,
indicating its plan to grant the needed relief subject to any
comments it receives.
"Invesco is always looking for solutions to best solve for our
clients' investment outcomes in an innovative manner and we
have high conviction that the Invesco active non-transparent ETF
model will bring together the right combination of active and
passive strategies," says Anna
Paglia, Global Head of ETFs and Indexed Strategies at
Invesco. "The unique perspective and specialized background of
Invesco's active managers, housed within an ETF wrapper has
exciting potential for client portfolios."
The proposed Invesco active non-transparent ETF model will
retain a number of the characteristics that investors find
attractive in an ETF structure, including an effective arbitrage
mechanism, tax efficiency1 and intraday tradability.
Under the proposed model, each trading day Invesco will
publish key data metrics to offer a clear view into an ETF's
portfolio value without fully disclosing the ETF holdings. The
Invesco non-transparent model would thereby maintain
confidentiality of a fund's strategy and help mitigate the risk of
front-running by keeping a portion of the fund's holdings shielded
from the market. If approved, the Invesco non-transparent active
ETFs will strike at least two NAVs per day, thus providing multiple
creation and redemption3 windows to authorized
participants throughout the day.
Invesco also filed for an exemptive order to license Fidelity's
active equity ETF methodology in July
2020, which was granted in October 2020. Once the
proprietary Invesco application is approved, the firm plans to
utilize both the Fidelity active non-transparent equity model and
the Invesco model to create Invesco active non-transparent ETFs.
Invesco active non-transparent ETFs will allow Invesco to deliver
the benefits of our active management in a tax
efficient1 and cost-effective2 ETF wrapper,
thus unlocking new opportunities for our clients.
About Invesco Ltd.
Invesco is a global independent
investment management firm dedicated to delivering an investment
experience that helps people get more out of life. Our
distinctive investment teams deliver a comprehensive range of
active, passive and alternative investment capabilities. With
offices in 25 countries, Invesco managed $1.2 trillion in assets on behalf of clients
worldwide as of September 30
2020. For more information, visit invesco.com.
1 The tax advantages of investing in Shares may be
less pronounced than passive ETFs because the Funds are actively
managed and, therefore, may have greater turnover in their
portfolio securities, which could result in less tax efficiency
than an investment in a fund that is not actively managed. Invesco
does not offer tax advice. Please consult your tax professional for
information regarding your own personal tax situation.
2 Since ordinary brokerage commissions apply for each
buy and sell transaction, frequent trading activity may increase
the cost of ETFs.
3 Shares are not individually redeemable and owners of
the Shares may acquire those Shares from the Fund and tender those
Shares for redemption to the Fund in Creation Unit aggregations
only, typically consisting of 10,000, 25,000, 50,000, 75,000,
80,000, 100,000, 150,000 or 200,000 Shares.
Important Information
There are risks involved with
investing in ETFs, including possible loss of money. Actively
managed ETFs do not necessarily seek to replicate the performance
of a specified index. Actively managed ETFs are subject to risks
similar to stocks, including those related to short selling and
margin maintenance.
Fidelity's active equity ETFs will utilize a "tracking basket"
methodology. This approach maintains confidentiality of a
portfolio's securities and trading strategies by disclosing a
"tracking basket" comprised of select recently disclosed portfolio
holdings, liquid U.S. ETFs that convey information about the types
of instruments in which the fund invests, and cash and cash
equivalents. This "tracking basket" is disclosed daily and is used
to facilitate the creation and redemption process. Each ETF's
portfolio holdings will be disclosed on its website on a monthly
basis with a 30-day lag.
Invesco is not affiliated with Fidelity.
Invesco Distributors, Inc. is the US distributor for Invesco's
retail products and private placements. It's an indirect, wholly
owned subsidiary of Invesco Ltd.
11/20 NA11525
Contact: Stephanie Diiorio,
212.278.9037, stephanie.diiorio@invesco.com
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SOURCE Invesco Ltd.