- Invesco Capital Management (IVZ, Financial) is seeking to reclassify the Invesco QQQ Trust (QQQ) from a "unit investment trust" to a "management company" under the Investment Company Act of 1940.
- The proposed changes would see a decrease in QQQ's expense ratio by 2 basis points, reducing it from 20 to 18 basis points.
- The restructuring plan requires approval from QQQ's beneficial owners through a proxy vote.
Invesco Capital Management LLC, a subsidiary of Invesco Ltd (IVZ), has taken steps to reclassify the Invesco QQQ Trust (QQQ) by filing a preliminary proxy statement with the Securities and Exchange Commission (SEC). The proposal aims to transform QQQ from a "unit investment trust" to a "management company," further subclassified as an "open-end company" as per the guidelines of the Investment Company Act of 1940.
Key proposed changes include replacing The Bank of New York Mellon as the current Trustee with a board of individual trustees. Despite this change, BNY will continue its roles as QQQ's custodian, administrator, accounting agent, and transfer agent. Invesco Capital Management (ICM) is also set to become the investment adviser for QQQ, implementing a new unitary fee of 18 basis points—an anticipated reduction from the existing 20 basis points expense ratio.
The restructuring plan, detailed in the preliminary proxy statement, is contingent upon approval from the beneficial owners of QQQ through a proxy vote. The statement is publicly accessible via the SEC's website and serves as a pivotal document for shareholders and potential investors.
As of March 31, 2025, Invesco Ltd managed $1.8 trillion in assets globally, underlining its extensive presence in the investment management industry.
