ATLANTA, April 22, 2014 /PRNewswire/ -- Invesco National Trust Company (INTC) today announced the offering of an additional 15 collective trust funds (CTFs) in response to increased demand in a variety of strategies and share classes within defined contribution (DC) plans. The new fund lineup has already been added to the platforms of a number of top DC record keepers and expands the opportunity for retirement plans to invest in additional Invesco strategies that span across all major asset classes and are delivered through a variety of vehicles. Each new CTF offers three share classes with a flat-rate, all-in fee. Client service fees in each share class range from zero to 15 basis points, to better meet plan sponsor needs. The new funds, which include domestic equity, foreign equity, fixed income and alternative funds, raise to 34 CTFs Invesco National Trust Company now offers the retirement plan market.
"This new fund lineup allows Invesco to provide a standardized offering to clients and record keepers," said Betsy Warrick, vice president, Invesco National Trust Company. "We find that record keepers appreciate the simplicity of net share classes, which will make the new funds more available in the medium-sized and even small-plan markets."
CTFs are becoming an increasingly attractive option for plan sponsors. In 2013, more than half of DC plans (52%) offered CTFs in their fund lineup, up from 44% in 2011.1 Heightened regulatory and legal scrutiny of plan fees and costs are primary drivers of the growing popularity of CTFs in DC plans.
CTFs, frequently referred to as "pooled" or "commingled" funds, are similar to mutual funds, with a few notable differences. CTFs are:
- Administered by banks and trust companies, and designed exclusively for qualified retirement plans – including defined benefit (DB) and DC.
- Regulated by either the Office of the Comptroller of the Currency (in the case of nationally chartered banks) or state banking examiners, with oversight by the Department of Labor.
- Not available to retail investors.
- Only indirectly available to individual retirement plan participants as options within their plan investment menu.
CTFs are a cost-effective vehicle because they're exempt from securities registration requirements, but in most cases provide informational materials for plan participants that are similar to mutual fund fact sheets. While CTFs have historically been cumbersome for retirement plans to administer, today's technology has enabled a more seamless operation on record keeper platforms.
The new CTFs now available from Invesco National Trust Company are:
- Invesco Equity and Income Trust
- Invesco Global Opportunities Trust
- Invesco International Growth Trust
- Invesco Global ex-U.S. Diversified Equity Trust
- Invesco Diversified Dividend Trust
- Invesco Growth and Income Trust
- Invesco Comstock Trust
- Invesco American Value Trust
- Invesco Charter Trust
- Invesco Mid Cap Core Equity Trust
- Invesco Small Cap Equity Trust
- Invesco Mid Cap Growth Trust
- Invesco Small Cap Discovery Trust
- Invesco Corporate Bond Trust
- Invesco High Yield Trust
This is not to be construed as an offer to buy or sell any financial instruments. Please obtain and review all financial material carefully before investing. Fund performance, fees and expenses are only a few of the criteria you should consider. A potential investor should also consider the investment objective, strategy and risks.
1. Source: Callan Investments Institute. 2014 Defined Contribution Trends
2. The Cerulli Report. Institutional Markets 2013
About Invesco National Trust Company
For more than 25 years, INTC has been managing collective trust funds. With more than $63.0 billion in assets under management (as of December 31, 2013), INTC is a top-10 provider of CTFs to the qualified retirement plan market.2 INTC serves as trustee and investment manager and is a wholly-owned subsidiary of Invesco, Ltd. Visit invesconationaltrust.com for more information.
NOT FDIC Insured, May Lose Value, No Bank Guarantee
Invesco Distributors, Inc. is the US distributor for Invesco Ltd.'s Retail Products and Collective Trust Funds. The Invesco Collective Trust Funds are Bank Collective Trust Funds for which Invesco National Trust Company serves as trustee and investment manager. They are available exclusively to qualified retirement plans. The funds are not FDIC-insured or registered with the Securities and Exchange Commission. Fund investors and potential investors are strongly encouraged to review the funds' Declaration of Trust for additional information regarding the operation and investment objectives of the funds.
SOURCE Invesco National Trust Company