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Invesco Canada is enhancing the offering of its innovative Platform Traded Fund (PTFs), effective March 12, 2018.

Designed for fee-based accounts, PTFs transact and settle like listed securities or exchange-traded funds. Developed by Invesco Canada and introduced in 2015, the funds aim to deliver active investment management at a cost comparable to institutional pricing.

Read: Is it time to temper outsized risk appetites?

PTF enhancements

The fixed-rate expense fees on all PTFs will be reduced. These fixed fees partially cover the funds’ operating expenses. Any operating expenses beyond these amounts are paid by Invesco Canada.

Fixed-rate expense fee reductions

Fund Series Current 
fixed-rate 
expense 
fee Reduced 
fixed-
rate 
expense 
fee
Invesco Canadian Bond Fund PTF 0.20% 0.05%
Invesco Global Bond Fund PTF 0.20% 0.10%
Invesco Advantage Bond Fund PTF 0.20% 0.15%
Invesco Global High Yield Bond Fund PTF 0.20% 0.15%
Invesco Floating Rate Income Fund PTF 0.20% 0.15%
Trimark Diversified Yield Class PTF 0.20% 0.15%
Trimark Global Diversified Income Fund PTF 0.20% 0.15%
Invesco Global Monthly Income Fund PTF 0.20% 0.15%
Trimark Global Balanced Class PTF 0.20% 0.15%
Trimark Canadian Endeavour Fund PTF 0.20% 0.15%
Trimark Canadian Opportunity Class PTF 0.20% 0.15%
Trimark Canadian Plus Dividend Class PTF 0.20% 0.15%
Invesco Canadian Premier Growth Class PTF 0.20% 0.15%
Trimark U.S. Companies Class PTF, PTFU 0.20% 0.15%
Trimark U.S. Small Companies Class PTF, PTFU 0.20% 0.15%
Trimark Global Dividend Class PTF 0.20% 0.15%
Invesco Global Dividend Income Fund PTF 0.20% 0.15%
Trimark Fund PTF, PTFU 0.20% 0.15%
Trimark Global Fundamental Equity Class PTF 0.20% 0.15%
Trimark Global Endeavour Class PTF, PTFU 0.20% 0.15%
Trimark Global Small Companies Class PTF, PTFU 0.20% 0.15%
Invesco Global Growth Class PTF, PTFU 0.20% 0.15%
Trimark International Companies Class PTF 0.20% 0.15%
Invesco International Growth Class PTF, PTFU 0.20% 0.15%
Invesco European Growth Class PTF, PTFU 0.20% 0.15%
Trimark Europlus Fund PTF, PTFU 0.20% 0.15%
Invesco Indo-Pacific Fund PTF, PTFU 0.30% 0.20%
Trimark Emerging Markets Class PTF, PTFU 0.30% 0.20%
Trimark Energy Class PTF 0.20% 0.15%
Trimark Resources Fund PTF 0.20% 0.15%
Invesco Global Real Estate Fund PTF, PTFU 0.20% 0.15%

 

Invesco will also reduce the management and advisory fees (MAFs) on the following PTFs:

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%

Note on MER reporting

The fee reductions above won’t be immediately reflected in the published management expense ratio (MER) for any given PTF.

MERs are based on the fees applied during the previous calculation period. They are calculated and published twice a year: on June 30 and Dec. 31 for funds with a Dec. 31 year-end, and on Mar. 31 and Sept. 30 for funds with a Mar. 31 year-end.

As such, published MERs will fully reflect the lower fees on June 30, 2019, for funds with a Dec. 31 year-end, and on Mar. 31, 2019, for funds with a Mar. 31 year-end.

Risk rating change

Invesco Canada has also changed the risk rating for the following funds, effective as of Feb. 23, 2018:

Fund Current risk 
classification Revised risk 
classification
Invesco Indo-Pacific Fund Medium to high Medium
Trimark Resources Fund Medium to high High

Risk rating changes were made in accordance with the risk classification methodology introduced by Canadian Securities Administrators to determine the risk level of mutual funds. There are no changes to the investment objectives, strategies or management of the funds.

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Originally published on Advisor.ca
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