Invesco Canada enhances mutual fund lineup

Expands currency-hedging program to dampen volatility

TORONTO, May 19, 2016 /CNW/ - Investors have faced a great deal of volatility in recent years. While stock-market swings tend to garner the biggest headlines, the global currency markets have also become increasingly volatile.

Currency fluctuations can frustrate investors, even as overseas markets rally, because global investment gains may be eroded by foreign exchange rates. Such volatility may call for a prudent currency-hedging strategy.

Invesco Canada today announced the launch of additional currency-hedged series for five of its funds with exposure to the global markets.

The following table illustrates the new series to be available as of June 6:

Fund

New series

Trimark Global Balanced Class

PFH

Trimark Global Dividend Class

H, FH, PH, PFH

Trimark Global Endeavour Class

FH, PH, PFH

Invesco International Growth Class

H, FH, PH, PFH

Trimark U.S. Companies Class

PFH

 

Invesco Canada is also implementing a new currency-hedging policy across its Invesco Intactive Accumulation Portfolios (the "Portfolios").

The previous foreign-currency-hedging policy set a goal that 50% of the foreign currency would be hedged at all times, with allowances for the difficulty in maintaining a precise hedge.

Under the new foreign-currency-hedging policy, the Portfolios' management team may make active decisions to increase or decrease the hedge based on the relative valuation of the Canadian dollar against foreign currencies to which each Portfolio is exposed.

The goal of this change is to provide the team with the discretion to address evolving market conditions and better serve the interests of investors.

Invesco Canada also announced enhancements to the Portfolios, which will provide the Portfolios' managers with greater flexibility as they seek investment opportunities for investors.

The tactical budget for asset allocation will increase from 15% to 30% of the Portfolios. This change affects only the fixed-income and equity portions of each Portfolio. The new tactical ranges are listed in the following table.

Portfolio

Fixed income

Equity

Invesco Intactive Diversified Income Portfolio/Portfolio Class

50%–80%

20%–50%

Invesco Intactive Balanced Income Portfolio/Portfolio Class

40%–70%

25%–55%

Invesco Intactive Balanced Growth Portfolio/Portfolio Class

23%–53%

43%–73%

Invesco Intactive Growth Portfolio/Portfolio Class

5%–35%

60%–90%

Invesco Intactive Maximum Growth Portfolio/Portfolio Class

0%–10%

85%–100%

 

There is no change to the tactical-allocation ranges for commodities or money markets.

The investment objectives of the Portfolios do not change as a result of these enhancements. The investment objectives for each of the Invesco Intactive Accumulation Portfolios remain as stated in the Invesco Simplified Prospectus dated July 31, 2015.

The risk profile and fund category for each Portfolio should not change as a result of these changes.

The attributes of Series H shares are identical to Series A shares of a fund, but with returns that reflect the performance of the fund after hedging as much of the foreign-currency exposure of each currency as possible.

Series FH shares combine the characteristics of Series F and H shares. They are available to investors who have fee-based accounts with dealers that have signed an agreement with Invesco.

Series PH shares combine the characteristics of Series P and H shares. They are available to investors who invest, in aggregate, a minimum of $100,000 in shares of the funds.

Series PFH shares combine the characteristics of Series P, F and H shares. They are available to investors who invest, in aggregate, a minimum of $100,000 in shares of the funds and who have fee-based accounts with dealers that have signed an agreement with Invesco.

Series PF6 shares combine the characteristics of Series P and F and are part of Invesco Canada's
T-FLEX series, which allow investors to choose from up to three annual target distribution levels to generate tax-efficient cash flow. In the case of Series PF6, the annual target distribution level is 6%.

For more information, please visit invesco.ca. You can also connect with Invesco Canada on Twitter (@InvescoCanada), LinkedIn or Facebook, and get insights from the Trimark portfolio managers on the Trimark Investments blog.

About Invesco Canada Ltd.
Invesco Canada Ltd., operating under three distinct yet complementary product brands (Trimark, Invesco and PowerShares), is one of Canada's leading investment management companies. A subsidiary of Invesco Ltd., Invesco Canada's singular focus is on investment management, offering a diversified suite of solutions to institutions, organizations, companies and individual investors across Canada and around the world. Additional information is available at invesco.ca.

About Invesco Ltd.
Invesco Ltd. is a leading independent global investment management firm, dedicated to helping investors worldwide achieve their financial objectives. By delivering the combined power of our distinctive investment management capabilities, Invesco provides a wide range of investment strategies and vehicles to our clients around the world. Operating in more than 20 countries, the firm is listed on the New York Stock Exchange under the symbol IVZ. Additional information is available at invesco.com.

Commissions, trailing commissions, management fees and expenses may all be associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Please read the simplified prospectus before investing. Copies are available from your advisor or Invesco Canada Ltd.

Invesco Intactive Accumulation Portfolios are Invesco Canada mutual funds that invest in a portfolio of underlying Invesco Canada mutual funds and exchange-traded funds. Tactical asset allocation strategies are used on a portion of the Invesco Intactive Accumulation Portfolios. The corporate class versions of the Invesco Intactive Accumulation Portfolios invest in Series I units of these Portfolios.

Invesco® and all associated trademarks are trademarks of Invesco Holding Company Limited, used under licence. Trimark®, Knowing pays® and all associated trademarks are trademarks of Invesco Canada Ltd.

© Invesco Canada Ltd., 2016

SOURCE Invesco Canada Ltd.

For further information: Aysha Mawani, Vice President, Corporate Affairs, Tel: 416.324.7712, aysha.mawani@invesco.com

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