Invesco Canada affiliate to manage nine funds in expansion effort

October 16, 2020.

’s Canadian division became the sole subadvisor for nine mutual funds Friday, part of a set of changes the firm put into motion to grow its offerings to Canadian institutional investors.

New lead managers from Invesco Advisers, an affiliate of Invesco Canada, have been appointed at the preexisting funds, Invesco said, and are subsequently changing their investment strategies.

Invesco said two of the funds will have their names changed Nov. 6: Invesco Core Canadian Balanced Class will be renamed Invesco Canadian Premier Balanced Class, and Invesco U.S. Small Companies Class will be known as Invesco Main Street U.S. Small Cap Class.

“Invesco is highly committed to continuing to build our business in Canada,” said Jason MacKay, the head of wealth management intermediaries at Invesco Canada. “Our plans are intended to leverage our global breadth and depth of resources and capabilities, bringing the best of Invesco to this important and growing market.”

The investment manager will also liquidate two funds with cumulative assets of CAD 170 million ($130 million) that target investments toward Canadian businesses on Dec. 21, the Invesco Canadian Small Companies Fund and the Invesco Canadian Opportunity Fund. They will be closed for new investors on Oct. 22 and open for existing investors until Dec. 17, according to Invesco.

These changes are taking advantage of Invesco’s $5.7 billion acquisition of New York-based exchange-traded fund manager OppenheimerFunds in 2018, Invesco Canada President John Zerr said. Invesco has also acquired firms Source and Guggenheim in the past few years and gained control of their funds.

And earlier this month, activist investment firm Trian Fund Management took a 9.9% stake in Atlanta-based Invesco and competitor Janus Henderson, signaling a potential merger to take on the dominant firms of the asset management market.

The changes will aid in Invesco’s growth, especially in Canada, and enhance its offerings aligned with environmental, social and governance principles, the investment manager said. 

Also on Thursday, Invesco Canada said securityholders of two mutual funds voted to shift investment objectives toward a focus of ESG by the end of the month. The funds will be renamed Invesco ESG Canadian Core Plus Bond ETF and Invesco ESG Canadian Core Plus ETF Fund, from their current names Invesco Tactical Bond ETF and Invesco Tactical Bond ETF Fund, respectively. 

The Toronto-based division released an ETF linked to a benchmark Canadian ESG index earlier this week, adding to the soaring popularity of sustainability-focused investing in the country.

Zerr said Invesco Canada plans to expand its offerings of ETFs, indexed products and alternative investments options in the country.