Currency or exchange-rate risk is a factor when you invest in foreign securities. Although you purchased the Fund in Canadian dollars, it may invest in securities outside of Canada using a different currency. As a result, changes in the value of the Canadian dollar relative to the foreign currency affect your investment value either positively or negatively.
Currency hedging seeks to smooth the ups and downs generated by exchange-rate movements on the value of a Fund and provides investors with more certainty as to the level of foreign exchange exposure in their investment.
The purpose of this page is to keep you up to date on foreign currency hedging activities in those funds where the portfolio managers choose to hedge some or all foreign currency exposure.
Invesco doesn't require portfolio management teams to either hedge or not hedge foreign currency exposure. The decision rests solely with the lead portfolio manager of a fund. Portfolio managers may decide to hedge or not hedge based on their personal philosophies or may act opportunistically and hedge some currencies some of the time. Portfolio managers are free to change their foreign currency strategy at any time and without notice.
Listed below are all Invesco funds that currently have some currency hedging in place (other than the currency-neutral solutions) as at the date indicated. This information will be updated at each quarter end.
(As of December 31, 2014)
|Fund||Currencies that are hedged||Exposure to this currency (before hedges)
|% of this currency exposure hedged||Total foreign currency exposure
of the Fund (after hedges)
|Trimark Canadian Bond Fund||USD||12||100||0|
|Trimark Canadian Bond Class||USD||12||100||0|
|Trimark Floating Rate Income Fund||USD||83||85||13|
|Trimark Government Plus Income Fund||USD||6||100||0|
|Trimark Advantage Bond Fund||USD||60||86||8|
|Trimark Global High Yield Bond Fund||USD||73||83||12|
|Invesco Emerging Markets Debt Fund||USD||3||48||96|
Commissions, trailing commissions, management fees and expenses may all be associated with mutual fund investments. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Please read the simplified prospectus before investing. Copies are available from your advisor or from Invesco Canada Ltd.