Invesco announces fund changes, fixed-income expansion

Invesco has announced changes to its product lineup in response to tax-treatment changes from the 2013 federal budget.

Subject to regulatory approval, Invesco plans to merge shares of Invesco Intactive Strategic Capital Yield Portfolio Class into units of Invesco Intactive Strategic Yield Portfolio, effective at close of business on March 24, 2017.

Concurrently, Invesco plans to terminate Series F8, Series PT8 and Series T8 of Invesco Intactive Strategic Capital Yield Portfolio Class and discontinue the U.S.-dollar purchase options of Series PT6 and Series T6.

Read: Mutual fund corporations lose tax advantage

Due to changes from the 2013 federal budget, Invesco Intactive Strategic Capital Yield Portfolio Class will no longer be able to provide tax-efficient benefits at the expiration of its forward contract in 2017. In response to the budget measures, the fund was capped to additional investments at close of business on June 14, 2013.

Fund shareholders will receive a 60-day notice explaining these changes.

Fixed-income expansion in Canada

Invesco also announced today it’s expanding its global fixed-income expertise into the Canadian marketplace.

Read: Why government bonds aren’t safe

Jennifer Hartviksen, head of Invesco fixed income in Canada, and her team will now have access to the Invesco fixed income team. This team has 165 investment professionals managing US$269.8 billion in assets worldwide and a dedicated 25-member macro research team.

In other news, the Invesco Floating Rate Income Fund will be sub-advised by the Invesco senior secured management (ISSM) team, effective November 21, 2016. “Senior secured debt can play a crucial role in mitigating the risks posed by rising interest rates — an environment many now expect in the U.S. by the end of the year,” says Scott Baskind, head of global senior loans and CIO at ISSM, in a release.

The team developed one of the first institutional senior loan platforms and helped foster the maturation of the syndicated senior loan market. With 43 investment professionals, the team is one of the world’s largest institutional managers of this asset class, managing US$33.6 billion.

Read: Negative rates can turn your world upside down

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.