Invesco Canada has launched Platform Traded Funds (PTFs), which the firm claims employ a new process for delivering its money management expertise. PTFs are designed for fee-based investors who work with either discretionary or non-discretionary advisors.
According to Invesco, PTFs are unique in that they transact and settle just like listed securities or exchange-traded funds (ETFs), using a streamlined process that eliminates unnecessary layers of cost. Investors benefit by having access to active management at a price comparable to that paid by institutional investors.
"We deconstructed the delivery of active money management to create a process that is far more efficient," says Peter Intraligi (pictured), President of Invesco Canada. "But this isn't just about lower cost; we've solved a number of challenges that are unique to fee-based investing. It took significant research and development, along with the support of industry stakeholders, to get to where we are today. It's a real breakthrough."
Fee-based advisors place orders for PTFs through their equity-trading platforms as they would an ETF or stock, simply using the PTF ticker. There are no minimum investment requirements and orders are filled using end-of-day net asset value (NAV), avoiding bid-ask spreads. Since PTFs transact on an equity-trading platform, features like bulk trading are also available.
PTFs are currently available exclusively through dealers that have signed an agreement with Invesco Canada. As more dealers sign on in the coming quarters, the availability of PTFs will broaden.
