From Invesco
On July 1, 2021, Invesco will modify the distribution frequency of its Rule 12b-1 payments (Fee or Fees) on its Retail Mutual Funds (Fund or Funds) to intermediaries. Broker-Dealers and RIAs that have an agreement with Invesco Distributors, Inc. that provides for the payment of a Fee for the servicing of Funds shares will now be paid monthly.
Under the Shareholder Services Agreement, the Fund agrees to pay Fees periodically to selected dealers and other institutions who render services to their customers. These Fees will be calculated at the end of each month for each business day at the annual rate specified in the Funds’ prospectuses based on the average daily net asset value of the Funds’ shares purchased or acquired through exchange. Fees shall be paid only to those selected dealers or other institutions who are dealers or institutions of record as of the close of business on the last business day of the applicable payment period for the account in which such Fund shares are held.
When will this change go into effect?
This change will be effective as of July 1, 2021. July’s 12b-1 payments will be sent in early August. Going forward, monthly payments will be sent by the 10th calendar day of the following month.
Why is Invesco making this change?
This change is being made in response to feedback from our intermediary partners.
Is there anything my firm or I need to do?
No, payments will be sent in the same method as currently established (ACH, Check, NSCC, etc.).
Is my back office/ custodian being notified?
Yes, a separate notification is being sent to our back office and custodian contacts.
Are all Mutual Funds included in this change?
All Class A, C, R, S, and Investor share classes that have an applicable 12b-1 plan are included in this change. Institutional Money Market Funds and V.I. Series II Funds are not included in this change.
What about accounts held through Financial Intermediaries?
Accounts held through financial intermediaries in an omnibus environment will continue to be paid at their current frequency. Please check with your financial intermediary’s back office for additional details.
Any additional changes?
Yes, the minimum payment has been modified to $15 per month, from $50 per quarter.
Contact us
Should you have questions, please contact your Invesco representative or your financial professional:
National Wirehouse 800 998 4246
Independent Broker Dealer 800 421 0807
Third Party and 529 Sales 800 410 4246, ext. 0529
Retail Retirement 800 370 1519
RIA and Private Client 800 421 4023
Client Services 800 959 4246
Closed-End Funds 800 341-2929
Global Liquidity 800 659 1005, option 2
TC121390(0621)1