Invesco drops 2% redemption fees, exchange limits for 15 funds

By Toni Weeks

San Diego, Dec. 15 - Invesco announced that 15 of its funds will eliminate the 2% redemption fees assessed on shares redeemed or exchanged within 31 days of purchase, according to a 497 filing with the Securities and Exchange Commission.

The change is effective Jan. 1 and applies to class A, class B, class C, class R, class Y, investor class and institutional class shares of the following funds:

• Invesco California Tax-Free Income Fund;

• Invesco Core Plus Bond Fund;

• Invesco Equally-Weighted S&P 500 Fund;

• Invesco Floating Rate Fund;

• Invesco Global Real Estate Income Fund;

• Invesco S&P 500 Index Fund;

• Invesco Structured Core Fund;

• Invesco Van Kampen American Franchise Fund;

• Invesco Van Kampen Equity and Income Fund;

• Invesco Van Kampen Growth and Income Fund;

• Invesco Van Kampen Pennsylvania Tax Free Income Fund;

• Invesco Van Kampen Small Cap Growth Fund;

• Premier Portfolio;

• Premier Tax-Exempt Portfolio; and

• Premier U.S. Government Money Portfolio.

In addition, the limit on the number of exchanges, which was generally set at four exchanges out of a fund per calendar year, has been eliminated. Instead, a purchase blocking policy will be established for some of the funds to limit negative effects of excessive trading. The purchase blocking policy does not apply to Invesco Money Market Fund, Invesco Tax-Exempt Cash Fund, Premier Portfolio, Premier Tax-Exempt Portfolio and Premier U.S. Government Money Portfolio.

Under the policy, any shareholder redeeming $5,000 or more of shares from a fund on any trading day will be blocked from investing in that fund for 30 days after the redemption date. The policy will normally apply to redemptions and purchases that are part of exchange transactions but will not apply to some purchases, such as retirement plan rollovers, IRA conversions and mandatory distributions from retirement accounts, among others.

The filing also stated that for all share classes other than the institutional class, the reinstatement privilege is suspended for the period of time in which a purchase block is in place on a shareholder's account.

The funds' investment adviser is Atlanta-based Invesco Advisers, Inc.

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