Toronto-based Invesco Canada Ltd. on Thursday announced the launch of additional currency-hedged series for five of its funds to help investors cope with volatile global currency markets.
The new series will available for the following funds as of June 6: Trimark Global Balanced Class; Trimark Global Dividend Class; Trimark Global Endeavour Class; Invesco International Growth Class; and Trimark U.S. Companies Class.
Invesco Canada is also implementing a new currency-hedging policy across its Invesco Intactive Accumulation Portfolios (IAPs).
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 IAP 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 says.
Invesco Canada also announced enhancements to the IAPs, 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 IAPs. This change affects only the fixed-income and equity portions of each portfolio.
The new tactical ranges are listed in the company’s announcement, as is information on the new currency-hedged series.
There is no change to the tactical-allocation ranges for commodities or money markets, Invesco Canada says.
The investment objectives of the portfolios do not change as a result of these enhancements, Invesco Canada adds, and the risk profile and fund category for each portfolio should not change as a result of these changes.