On the heels of announcing last month that it would add loads to the majority of its products and sell mostly through intermediaries, INVESCO has filed with the Securities and Exchange Commission to contract its sister company, AIM, to sub-advise three money market funds.
The three affected funds are the INVESCO Cash Reserves Fund, the INVESCO Tax-Free Money Fund and the INVESCO U.S. Money Fund.
AMVESCAP, the holding company that controls both AIM and INVESCO, has said that it will keep the two subsidiary brands distinct rather than merge them. But the move to hand these money market assets over to AIM is an indicator that AMVESCAP is still shifting its strategy in the wake of INVESCOs announcement that it will sell load products in March of next year.
With just less than $2.7 billion in assets, INVESCOs money market products hold markedly fewer assets than AIMs, which have nearly $54.4 billion in money market assets as of October, according to Financial Research Corporation. AIMs money market funds have attracted close to $10.8 billion in flows year-to-date while INVESCO has posted outflows of $2.6 million for the same period.
INVESCO executives would not comment on the filing.
INVESCO shareholders are expected to address the issue via proxy vote by February 19 of next year.
