Toronto-based Invesco Canada Ltd. is reducing the fixed-rate expense fees on all of its platform traded funds (PTFs), effective March 12.
Designed for fee-based accounts, PTFs transact and settle just like listed securities or exchange-traded funds. Developed by Invesco Canada and introduced in 2015, PTFs aim to deliver active investment management at a cost comparable to institutional pricing.
The fixed-rate expense fees on all PTFs will be reduced from 0.20% to as low as 0.05%, Invesco says in a news release.
These fixed fees partially cover the operating expenses of the funds. Any operating expenses beyond these amounts are paid by Invesco.
Invesco will also reduce the management and advisory fees (MAFs) on seven PTFs. The reduced management fees range from 0.75% to 0.55%.
“The fee reductions described above will not be immediately reflected in the published management expense ratio (MER) for any given PTF,” Invesco says.
Published MERs will fully reflect the lower fees on June 30, 2019 for funds with a Dec. 31 year-end, and on March 31, 2019 for funds with a March 31 year-end, Invesco adds.
Invesco also announced risk rating changes to two funds were made, effective Feb. 23.
Invesco Indo-Pacific Fund’s risk rating drop to “medium” from “medium to high” and the rating for Trimark Resouces Fund rises to “high” from “medium to high.”
A complete list of the fee changes is available in the company’s news release.