In the efforts to reduce the cost of investing, Invesco Canada announced several changes and enhancements to its mutual fund line up.
Commencing on November 10, Invesco will automatically link non-registered and registered accounts held by a single investor at the same dealership.
Under the new scheme, individual and linked accounts with a minimum of $100,000 in aggregate assets will qualify for preferred pricing under the Private Investor Series. They will also be automatically switched into a lower-cost, Private Investor Series of the fund.
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Invesco said investors may seek the help of their advisors to link the accounts of others within the household, as well as their business accounts in order to reach this minimum. The service will not cost and will not cause them to incur any tax.
The fund manager noted that the accounts will be reviewed weekly, and new assets that qualify will automatically be switched on the first day of the following month starting 1 December.
"Other than the applicable fees, there is no difference between the Retail Investor Series and the Private Investor Series into which the investors' investments would be switched upon meeting the eligibility criteria," Invesco explained.
For those investors who don’t meet the eligibility criteria for Private Investor Series, their investment may be put into a series with a higher management and advisory fee, which will not exceed the Retail Investor Series fees.
Invesco stressed that investors will not have the right to withdraw from an agreement of purchase and sale in connection with an automatic switch into a Private Investor Series.
However, it noted that investors will have the right of action for damages or rescission in the event of any misrepresentation in the Fund Facts document.
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