PFL can help investors reduce risk in portfolios and benefit
from higher yields in a rising rate environment
TORONTO, July 14,
2022 /CNW/ -- Invesco Canada Ltd. ("Invesco") today
announced that effective immediately, the full 0.20% management fee
on the Invesco 1-3 Year Laddered Floating Rate Note Index ETF (PFL)
has been waived until at least August 31,
2023.
"Our clients are looking for ETF solutions like PFL that offer
intraday liquidity and have low sensitivity to the rising
interest-rate environment relative to the overall Canadian broad
bond market1. The strategy of PFL may offer an
opportunity for investors to preserve capital by helping to reduce
risk in portfolios while providing an attractive yield compared to
holding cash," said Pat Chiefalo,
Senior Vice President, Head ETFs & Index Strategies,
Canada.
PFL currently holds high-quality AAA-rated and
AA-rated2 short-term investment-grade government,
agencies or provincial floating rate notes. The coupons paid by
these holdings reset regularly resulting in higher coupon payments
as interest rates rise. The laddering structure of PFL and
short duration of underlying securities may help to reduce the
interest-rate sensitivity of a portfolio in the current
environment. As a fixed income ETF, PFL offers investors a
potential low risk3 investment while interest rates
continue to increase.
PFL seeks to replicate, to the extent reasonably possible and
before fees and expenses, the performance of the FTSE Canada 1-3
Year Laddered Floating Rate Note Index. The index is designed to
measure the return of a 1-3 year floating rate note laddered basket
of Canadian government, agencies and provinces investment-grade
floating-rate notes.
Please contact Invesco at 1.800.874.6275. You can also connect
with Invesco on Twitter (@InvescoCanada), LinkedIn, Facebook,
through the Invesco Canada blog or by visiting www.invesco.ca.
- Compared to the FTSE Universe Bond Index, over the period
7/11/2014 to 6/30/2022.
- Ratings by S&P.
- Invesco has rated the volatility of PFL as low. This
rating is based on how much PFL's returns have changed from year to
year. It does not indicate how volatile PFL will be in the
future. The rating can change over time. An ETF with a
low risk rating can still lose money.
About Invesco Ltd.
Invesco Ltd. is a global independent investment management firm
dedicated to delivering an investment experience that helps
people get more out of life. Our distinctive investment teams
deliver a comprehensive range of active, passive and alternative
investment capabilities. With offices in more than 20 countries,
Invesco managed US$1.6 trillion in
assets on behalf of clients worldwide as of March 31, 2022. For more information, visit
www.invesco.com.
Commissions, management fees and expenses may all be associated
with investments in mutual funds and exchange-traded funds (ETFs).
Trailing commissions may be associated with investments in mutual
funds. Mutual funds and ETFs are not guaranteed, their values
change frequently and past performance may not be repeated. There
are risks involved with investing in ETFs and mutual funds. Please
read the prospectus before investing. Copies are available from
Invesco Canada Ltd. at www.invesco.ca.
There are risks involved with investing in ETFs. Please read the
prospectus for a complete description of risks relevant to the ETF.
Ordinary brokerage commissions apply to purchases and sales of ETF
units.
FTSE Global Debt Capital Markets Inc. ("FGDCM"), FTSE
International Limited ("FTSE"), or the London Stock Exchange Group
companies (the "Exchange") (together, the "Licensor Parties"). The
Licensor Parties make no warranty or representation whatsoever,
expressly or impliedly, either as to the results to be obtained
from the use of the FTSE Canada 1-3 Year Laddered Floating Rate
Note Index ("the Index") and/or the figure at which the Index
stands at any particular time on any particular day or otherwise.
The Index is compiled and calculated by FGDCM and all copyright in
the Index values and constituent lists vests in FGDCM. The Licensor
Parties shall not be liable (whether in negligence or otherwise) to
any person for any error in the Index and the Licensor Parties
shall not be under any obligation to advise any person of any error
therein. "FTSE®" is a trademark of FTSE International Limited in
Canada and Taiwan, and "FTSE®" is a trademark of the London Stock
Exchange Group companies in the rest of the world, and is used by
FGDCM under licence
Invesco is a registered business name of Invesco Canada Ltd.
Invesco® and all associated trademarks are trademarks of Invesco
Holding Company Limited, used under licence.
© Invesco Canada Ltd., 2022
Contact: Stephanie Diiorio,
212-278-9037, Stephanie.Diiorio@invesco.com
SOURCE Invesco Ltd.