Invesco announces strategy, fee changes for multiple funds

Invesco Canada has proposed the following changes and fee reductions to its fund lineup.

Invesco Advantage Bond Fund

Subject to security holder approval, the investment objectives of the Invesco Advantage Bond Fund are changing. Invesco says in a release that this will allow for a global multi-sector approach that provides increased diversification across four broad asset classes: global investment-grade credit; global high-yield credit; emerging markets debt; and bank loans.

If the proposal is approved, the fund name will change to the Invesco Active Multi-Sector Credit Fund, effective at close of business on July 27. Also, four new members will join the fund’s portfolio management team.

Invesco Canadian Bond Fund, and Class

Effective at close of business on June 8, Invesco is changing the investment strategy for the Invesco Canadian Bond Fund, and Class. The company wants to include an allocation to high-yield and non-traditional fixed income securities, such as floating-rate loans and emerging market bonds.

As a result, the fund and class will be renamed, respectively, as Invesco Canadian Core Plus Bond Fund and Invesco Canadian Core Plus Bond Class. There are no changes to the portfolio management teams.

Fee reductions

Invesco is reducing the management and advisory fee (MAF) of the Invesco Canadian Bond Fund, Series F, to 0.50% from 0.65%. It’s also changing the MAF of Series PF to 0.45% from 0.50%.

In addition, the MAF of the Invesco Short-Term Bond Fund, Series F, will be reduced to 0.40% from 0.65%.

All fee reductions will be effective at close of business on June 8.

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PowerShares Funds

Subject to security holder approval, Invesco has proposed changing the investment objectives of the following four PowerShares funds:

• PowerShares 1-5 Year Laddered Corporate Bond Index Fund;
• PowerShares Canadian Dividend Index Class;
• PowerShares Canadian Preferred Share Index Class; and
• PowerShares FTSE RAFI Canadian Fundamental Index Class.

The changes are expected to result in increased trading efficiency, given the management teams would be able to invest in the Invesco ETF that tracks each fund’s respective index rather than buying and selling underlying securities that are components of each index.

If the proposal is approved, the changes will be effective at close of business on July 27.

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