The shift to fee-based investing has given birth to a new traded fund product that is specifically targeted for the niche investor.
“We deconstructed the delivery of active money management to create a process that is far more efficient,” says Peter Intraligi, president of Invesco Canada, following this morning’s announcement of the introduction of an entirely new process for delivering money management expertise through Platform Traded Funds (PTFs). “We’ve solved a number of challenges that are unique to fee-based investing.”
PTFs are unique in that they transact and settle just like listed securities or exchange-traded funds, using a streamlined process that eliminates unnecessary layers of cost. The benefit to investors is having access to active management at a price comparable to that paid by institutional investors.
ETFs have proven wildly popular among investors and advisors, with equity and fixed income ETF inflows totalling $4.5 billion and $.47 billion respectively so far this year in Canada.
While successful, Invesco saw an opportunity to meet a need among fee-based clients, culminating in the PTF.
Fee-based advisors place orders for PTFs through their equity-trading platforms as they would an ETF or stock, using the PTF ticker. Since PTFs transact on an equity-trading platform, features like bulk trading are also available.
There are no minimum investment requirements and orders are filled using end-of-day net asset value, avoiding costly bid-ask spreads.