Pending approval, Invesco plans to close all series of both its PowerShares Tactical Bond Capital Yield Class and Invesco Intactive Strategic Capital Yield Portfolio Class. No additional investments can be made, effective June 14, 2013.

This is due to Budget 2013’s elimination of the tax advantages of character conversion transactions.

Read: Character conversion transactions under fire

The company says the capping of the two fund classes is in the best interests of investors. It’s aiming to maintain the tax-efficient benefits of all classes within its corporate class.

In light of these changes and subject to board approval, Invesco will open corresponding trust versions of the two capital yield classes being closed. Purchase could be made in all account types, including non-registered accounts, effective June 17, 2013, though these Funds are currently restricted to investors in registered tax plans.

All other classes within Invesco’s corporate class remain unaffected by these changes.

Read: Corporate class, ETFs still tax-efficient after Budget

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