In a move that further illustrates the vitality of financial advisers,
is making further moves to pitch its funds through financial planners and brokers.
In September and October, the Denver-based fund shop, which has traditionally sold its funds directly to investors, filed paperwork with regulators to add Class K shares to most of its stock and bond mutual funds. These new share classes should launch by year end and will levy 0.45% annual 12b-1, or marketing, fees to pay financial planners.
Among the few funds without Class K filings are
Invesco Small Company Growth, which closed to new investors on Aug. 31;
Invesco Pacific Basin and
Invesco Latin American Growth. The latter two funds are scheduled to liquidate this month pending shareholder approval.
Back in February, the firm launched Class C shares to 27 of its funds. Class C shares levy a maximum 1% annual marketing fee and a 1% back-end load on shares sold within 13 months of purchase. At the same time, the firm announced plans to double its corps of wholesalers -- the folks who traipse around the country pitching funds to brokers and financial advisers.
Invesco's high-octane funds have been selling well. Through the end of September, it was the fifth best-selling fund shop, according to Boston-based fund consultant
. The firm's assets, now topping $50 billion, have just about doubled over the 12 months ending Sept. 30.
But just like you can never be too thin or too rich, this move shows fund companies can never have too many distribution channels. The firm's statements claim some 75% of fund purchases come through brokers, financial planners and other advisers. Invesco now has a separate Web site for investment advisers.
Inveso is hardly alone in wooing financial advisers.
several other traditionally direct-sold shops have made moves to pitch their funds through brokers and planners.