ATLANTA, Nov. 9, 2015 /PRNewswire/ -- Invesco today
announced changes to its money market fund lineup to address the
regulatory changes adopted by the U.S. Securities and Exchange
Commission (SEC) in July 2014.
In July of 2014, the SEC announced new money market fund
reforms. These reforms, intended to further strengthen the
resiliency of funds during times of stress, will take effect
October 14, 2016 and influence the
shape of the money market fund industry for years to come.
In order to assist our investors in planning, and to help ease
the transition into the new regulatory environment, details of our
intentions for certain segments of our money market fund product
line follow. Accordingly, we have reviewed these intentions with
the funds' Board of Trustees.
Government Money Market Funds:
Under the new rules, government money market funds will be
permitted to transact at a stable, or constant, net asset value
(CNAV) of $1.00 per share and must
invest at least 99.5% of their assets in cash, U.S. Government
Securities (as defined under the federal securities laws), and/or
repurchase agreements collateralized by cash or U.S. Government
Securities.
The following Invesco money market funds will operate consistent
with the government money market fund classification:
- Government & Agency Portfolio
- Government TaxAdvantage Portfolio
- Invesco V.I. Money Market Fund
- Premier U.S. Government Money Portfolio
- Treasury Portfolio
The Invesco V.I. Money Market Fund, currently a prime
money market fund, will change its name and investment strategy to
qualify and operate as a government money market fund effective on
or about April 29, 2016. A prospectus
supplement describing these changes in detail was filed on
Nov. 3, 2015.
Government & Agency Portfolio, Premier U.S. Government
Money Portfolio, Government TaxAdvantage Portfolio, and
Treasury Portfolio have historically invested 100% of their
assets in cash, U.S. Government Securities, and/or repurchase
agreements collateralized by cash or U.S. Government Securities.
Therefore, these funds are currently in compliance with the
investment requirement of the new regulations and intend to remain
in compliance in advance of reform implementation. Furthermore,
Invesco does not have a current intention of adopting liquidity
fees or redemption gates for these funds. The Board reserves the
right to impose a liquidity fee or redemption gate in the future
upon prior notice to shareholders.
Constant NAV (CNAV) Retail Money Market Funds: Under the
new rules, prime and municipal money market funds available only to
retail investors will be permitted to continue to transact at a
constant, or stable, net asset value (CNAV) of $1.00 per share. These funds will be subject to
liquidity fees and redemption gates on or before October 14, 2016 when reform is fully
implemented.
The following two Invesco money market funds will operate
consistent with the CNAV retail money market fund
classification:
- Invesco Tax-Exempt Cash Fund
- Tax-Free Cash Reserve Portfolio
Floating NAV (FNAV) Money Market Funds: Prime and
municipal institutional money market funds that are available to
only institutional investors, or both institutional investors and
retail investors, must transact at floating net asset value (FNAV)
by October 14, 2016. FNAV money
market funds will also be subject to liquidity fees and redemption
gates.
The following Invesco money market funds will operate consistent
with the FNAV money market fund classification:
- Liquid Assets Portfolio
- Premier Tax-Exempt Portfolio
- STIC Prime Portfolio
The specific timing of the changes discussed above will be
determined and communicated in 2016 as final reform implementation
takes shape. Additionally, we will communicate plans for the
Invesco Money Market Fund and the Premier Portfolio in the
future.
Invesco Global Liquidity: Long-Term Approach to Short-Term
Investing
For more than 30 years, Invesco Global Liquidity
has worked to gain and keep the trust of our investors through our
deep industry knowledge and our investment expertise.
Our primary goal through the money market fund reform process is
to provide our investors with a full suite of liquidity management
solutions to meet their investing needs with the least amount of
disruption while remaining focused on our disciplined investment
process.
About Invesco Ltd.
Invesco Ltd. is a leading
independent global investment management firm, dedicated to helping
investors worldwide achieve their financial objectives. By
delivering the combined power of our distinctive investment
management capabilities, Invesco provides a wide range of
investment strategies and vehicles to our clients around the world.
Operating in more than 20 countries, the firm is listed on the New
York Stock Exchange under the symbol IVZ. Additional information is
available at www.invesco.com.
Before investing, investors should carefully read the
prospectus and/or summary prospectus and carefully consider the
investment objectives, risks, charges and expenses. For this and
more complete information about the fund(s), investors should ask
their advisers for a prospectus/summary prospectus or visit
invesco.com/fundprospectus.
Invesco Distributors, Inc. is the US distributor for Invesco
Ltd.'s retail products. It is an indirect, wholly owned
subsidiary of Invesco Ltd.
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SOURCE Invesco