Invesco Canada announces changes to its product line Français
Changes are proposed for two ETFs and one Mutual Fund
TORONTO, July 29, 2020 /CNW/ -- Invesco Canada Ltd. ("Invesco") today announced proposed changes to its product line. Subject to investor approvals, Invesco proposes to change the investment objectives for three existing Invesco Canada funds – the Invesco Tactical Bond ETF (PTB), the Invesco Tactical Bond ETF Fund, and the Invesco DWA Global Momentum Index ETF (DWG). Invesco is also seeking investor approval for a change in the management fee of Invesco DWA Global Momentum Index ETF (DWG). Additionally, the firm has revised its investment risk ratings for four mutual funds.
Invesco Tactical Bond ETF (PTB)
Subject to investor approval, Invesco proposes changing the investment objectives of the Invesco Tactical Bond ETF (PTB). The change is subject to investor approval and an investor meeting will be held virtually on or about October 15, 2020. The implementation of this investment objectives change is also subject to acceptance by the Toronto Stock Exchange.
If approved, the change to the investment objectives will be implemented effective on or around October 30, 2020, and the fund will also change its investment strategies, name and ticker to Invesco ESG Canadian Core Plus Bond ETF (BESG) to better reflect its new objectives. Additionally, if approved, the sub-advisory structure will change so that the Core Plus investment management team of Invesco Fixed Income becomes the portfolio management team for the Fund, and the management fee will be reduced from 0.49% of the net asset value (NAV) to 0.35% of NAV. Further details surrounding the investment objectives change and the other changes that would occur together with the investment objectives change will be included in a management information circular and proxy, which will be available online, and a Notice-and-Access Document will be mailed in September 2020 to investors of record as of August 31, 2020.
Current |
Proposed |
|
Fund Name |
Invesco Tactical Bond ETF |
Invesco ESG Canadian Core Plus Bond ETF |
Fund Ticker |
PTB |
BESG |
Management Fee (% of NAV) |
0.49% |
0.35% |
Invesco Tactical Bond ETF Fund
Subject to investor approval, Invesco proposes changing the investment objectives of the Invesco Tactical Bond ETF Fund. The change is subject to investor approval and an investor meeting will be held virtually on or about October 15, 2020. If the proposed changes to the PTB investment objectives are not approved, Invesco will not proceed with the proposed change in investment objectives for this fund.
If the proposed changes to the PTB investment objectives and these changes are approved, the change to the investment objectives will be implemented effective on or around October 30, 2020, and the fund will also change its investment strategies and name to Invesco ESG Canadian Core Plus Bond ETF Fund to better reflect its new objectives. Additionally, if approved, the portfolio management team will change to the Core Plus investment management team of Invesco Fixed Income and the effective management and advisory fees paid by various series of the fund will be reduced. Further details surrounding the investment objectives change and the other changes that would occur together with the investment objectives change will be included in a management information circular and proxy, which will be available online, and a Notice-and-Access Document will be mailed in September 2020 to investors of record as of August 31, 2020.
Current |
Proposed |
|
Fund Name |
Invesco Tactical Bond ETF Fund |
Invesco ESG Canadian Core Plus Bond ETF Fund |
Effective Management and Advisory Fee (Series A, T4, T6) (% of NAV) |
0.90%† |
0.85% |
Effective Management and Advisory Fee (Series F, F4, F6) (% of NAV) |
0.40%† |
0.35% |
†For the most recently completed financial year as at March 31, 2020. The Fund currently pays a stated management and advisory fee, as well as the portion of the management and advisory fees charged by the underlying funds held by the Fund that are not for duplicative services, The current effective management and advisory fee shown in the chart above is the total of these management and advisory fees.
Invesco DWA Global Momentum Index ETF (DWG)
Subject to investor approval, Invesco proposes changing the investment objectives and management fee of the Invesco DWA Global Momentum Index ETF (DWG). These changes are subject to investor approval and an investor meeting will be held virtually on or about October 15, 2020. Invesco will not proceed with the management fee change unless it receives approval for, and implements, the investment objectives change. The implementation of this investment objectives change is also subject to acceptance by the NEO Exchange.
The Independent Review Committee ("IRC") of DWG has reviewed the potential conflict of interest matters related to the proposed management fee change, and has advised Invesco that, after reasonable inquiry, in the IRC's opinion, the proposed management fee change achieves a fair and reasonable result for DWG.
If approved, the changes to the investment objectives and management fee will be implemented effective on or around October 30, 2020, and the fund will also change its investment strategies, name and ticker to Invesco S&P 500® Momentum Index ETF (MOM) to better reflect its new objectives. Further details surrounding the proposed investment objectives and management fee changes will be included in a management information circular and proxy, which will be available online, and a Notice-and-Access Document will be mailed September 2020 to investors of record as of August 31, 2020.
Current |
Proposed |
|
Fund Name |
Invesco DWA Global Momentum Index ETF |
Invesco S&P 500 Momentum Index ETF |
Fund Ticker |
DWG |
MOM MOM.F MOM.U |
Management Fee (% of NAV) |
0.05%† in addition to the management fees charged by the underlying ETFs DWG may hold (e.g. PIE, PIZ, PDP, DWAS). |
0.18% |
† The management fee for this ETF is in addition to the management fee charged by any Invesco ETF held by it. The effective management fee paid by investors in this ETF may vary significantly from period to period depending on which Invesco ETFs are held by it and the allocations thereto. Under its Index methodology, the effective management fee, on an annualized basis, at any given time may range from 0.05% to 0.90%. Please see the prospectus for more information about this ETF's index methodology and for information about the management fees, other expenses and total annual fund operating expenses for the Invesco ETFs that may be held by it.
Risk Ratings Change
Invesco has also revised its investment risk ratings for the following mutual funds:
Fund |
Previous investment risk rating |
New investment risk rating |
Invesco Intactive 2033 Portfolio |
Low |
Low to Medium |
Invesco Intactive Balanced Income Portfolio Class |
Low |
Low to Medium |
Invesco Intactive Balanced Income Portfolio |
Low |
Low to Medium |
Invesco Strategic Yield Fund |
Low |
Low to Medium |
The risk rating changes were made in accordance with the risk classification methodology set by the Canadian Securities Administrators to determine the investment risk level of mutual funds, not a result of any changes to the investment objectives or strategies of the fund.
Please contact Invesco at 1.800.874.6275. You can also connect with Invesco on Twitter
(@InvescoCanada), LinkedIn, Facebook, or through the Invesco Canada blog.
About Invesco Ltd.
Invesco Ltd. is a global independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. Our distinctive investment teams deliver a comprehensive range of active, passive and alternative investment capabilities. With offices in 25 countries, Invesco managed US$1.1 trillion in assets on behalf of clients worldwide as of June 30, 2020. For more information, visit invesco.com.
Commissions, management fees and expenses may all be associated with investments in mutual funds and exchange-traded funds (ETFs). Trailing commissions may be associated with investments in mutual funds. Mutual funds and ETFs are not guaranteed, their values change frequently and past performance may not be repeated. There are risks involved with investing in ETFs and mutual funds. Please read the prospectus before investing. Copies are available from Invesco Canada Ltd. at www.invesco.ca.
Invesco Canada Ltd. ("Invesco") has obtained a licence from Dorsey, Wright & Associates, LLC ("Dorsey Wright") for use of certain Dorsey Wright trademarks and the Dorsey Wright Global Technical Leaders Index ("Index"). Such trademarks and Index have been developed by Dorsey Wright without regard to and independently of Invesco, this product, and/or any prospective investor. A determination that any portion of an investor's portfolio should be devoted to any product developed by Invesco with reference to a Dorsey Wright index is a determination made solely by the investor, not Dorsey Wright or Invesco. The licensing of any index to Invesco is not an offer to purchase or sell, or a solicitation or an offer to buy any security.
S&P® and S&P 500® are registered trademarks of Standard & Poor's Financial Services LLC and have been licensed for use by S&P Dow Jones Indices LLC and sublicensed for certain purposes by Invesco Canada Ltd.
Invesco® and all associated trademarks are trademarks of Invesco Holding Company Limited, used under licence.
© Invesco Canada Ltd., 2020
Contact: Stephanie Diiorio, Invesco Media Relations 212.278-9037
SOURCE Invesco Ltd.
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