May 28, 2013
/CNW/ - Invesco Canada Ltd. today announced that, subject to board approval, it is closing all series of PowerShares Tactical Bond Capital Yield Class and Invesco Intactive Strategic Capital Yield Portfolio Class (the "Capital Yield Classes") to additional investments, effective close of business on
June 14, 2013
The capping of the Capital Yield Classes is in response to changes introduced in the 2013 Federal Budget that eliminate the tax advantages of "character conversion transactions." Character conversion transactions are investment strategies that use forward contracts to deliver returns in the form of tax-preferred capital gains, rather than fully taxable interest income.
Invesco Canada believes the capping of the Capital Yield Classes is in the best interests of investors in order to maintain the tax-efficient benefits of all classes within Invesco Corporate Class Inc.
Invesco Canada may, at its discretion, close the Capital Yield Classes to additional investments prior to
June 14, 2013
should it determine this action is in the best interests of investors, and will notify the public via a press release of its decision to do so.
In light of these changes, subject to board approval, Invesco Canada will open the corresponding trust versions of the Capital Yield Classes - PowerShares Tactical Bond Fund and Invesco Intactive Strategic Yield Portfolio - for purchase in all account types, including non-registered accounts, effective
June 17, 2013.
(These Funds are currently restricted to investors in registered tax plans.)
It should be noted that all other classes within Invesco Corporate Class Inc. remain unaffected as a result of the 2013 Federal Budget changes.
In addition, the budgetary changes do not directly impact the tax-efficient benefits of Invesco Corporate Class Inc., which include tax-deferred switching between classes and the potential for reduced taxable distributions through the sharing of expenses, gains and losses within the corporation.