Invesco Canada reduces fees on platform traded funds

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.

Also read:

Fixed income investors don’t fear inflation: study