As we prepare for the closing of the anticipated Invesco-OppenheimerFunds transaction1, we want to advise you that the Portfolio Builder program in its current form will not be available on the Invesco platform.
In preparation for the change, effective March 29, 2019, no new Portfolio Builder accounts may be established.
To help support your client communication efforts, we developed the following template letters for you:
- Letter for clients with Rebalancing options other than Deviation
- Letter for clients with Deviation Rebalancing option
To access your Portfolio Builder clients, please click here.
Frequently Asked Questions
Q1. Will my clients’ current Portfolio Builder asset allocations transfer over to the Invesco platform?
A1. Yes, your clients’ current asset allocations will transfer over to the new platform intact and the transition will not be a taxable event.
Q2. What will the rebalancing frequencies be in the new program?
A2. The rebalancing frequency options in the new program will be Annually, Semi-Annually, Quarterly, and Monthly.
Q3. Will my clients’ current rebalancing frequency transfer over to the new platform?
A3. The Annual and Semiannual rebalancing options will transfer over with no change. (Please see the following Q4 & 5 for information about changes to the Deviation and Rebalance on Demand options.)
Q4. How will the Deviation rebalance option change in the new platform - if and when there is a 5% or greater difference from the target asset allocation (minimum of 90 days apart, but not more than four times a year).
A4. Clients who currently use the Deviation rebalancing option will be mapped over to a new Quarterly rebalancing option.
• For Traditional IRA and non-retirement accounts, the system will look for a 5% or greater difference once every 90 days.
• For employer-sponsored retirement accounts, the system will rebalance every 90 days, regardless of the percent of deviation from the target allocation.
Currently, in Portfolio Builder the system looks daily beginning after 90 days, until a rebalance is needed.
Q5. How will the Rebalance on Demand rebalancing option change in the new platform?
A5. Rebalance on Demand in the current Portfolio Builder program allows the financial advisor to direct if and when a portfolio is rebalanced.
• For Employer-sponsored retirement accounts utilizing Rebalance on Demand rebalancing frequency, they will not transfer over to an asset allocation model in the new platform. The accounts will transfer over in the same funds, but the clients will no longer be in a model. To ensure their accounts transfer over as an asset allocation model, clients currently in Rebalance on Demand must choose a new rebalance frequency option of Annual, Semi-Annual, Quarterly or Monthly.
• For Traditional IRA and non-retirement accounts, asset allocation models will transfer over to the new platform. However, for automatic rebalancing to occur, a new rebalancing frequency option of Annually, Semi-Annually, Quarterly or Monthly must be chosen.
Q6. What type of accounts will be able to choose an asset allocation model on the new platform?
A6. Shareholders in non-retirement and retirement program accounts will be able to establish an asset allocation model for their accounts. Retirement accounts include: individual accounts such as IRAs - Traditional and Roth, and employer plans: SIMPLE IRAs and SEP/SARSEP IRA, 403(b) plans and Single K plans.
Q7. How does this differ from the current registration restrictions?
A7. Currently Portfolio Builder is not available to Roth accounts in Single K, or 403(b) plans. In the new platform, Roth accounts will be included.
Q8. How many funds will be permitted in a model?
A8. 2-10 funds will be permitted to make up a model on the new platform. Currently Portfolio Builder requires at least 3 funds and permits up to 15 funds.
Q9. Will I be able to create a model and use it again for new clients - that is, Advisor models?
A9. Yes, for non-retirement accounts, Traditional and Roth IRAs, advisors will have the ability to apply models to multiple client accounts, by calling customer service at Invesco, provided the model is in the same share class, funds and percent allocation. This feature is not available for employer-sponsored retirement plans such as SIMPLE IRAs, SEP/SARSEP IRAs, Single K and 403(b) plans.
Q10. Will my current model names transfer over, and will I have the ability to name models in the new program?
A10. Yes, for non-retirement accounts, Traditional and Roth IRAs, the current model names will transfer over and you will have the ability to name models. However, in retirement employer-sponsored plans, including SIMPLE, SEP/SARSEP IRA, Single K and 403(b) plans, model names will not transfer over and you will not have the ability to name new models, although your clients will be in a Personal asset allocation model in these accounts.
Q11. Will there be an initial investment requirement?
A11. Yes. The account must have a minimum balance of $5,000 with a minimum of $500 in each fund. NOTE: Existing models will be grandfathered and exempt from this requirement. Please reference the minimum purchase requirements in Invesco’s prospectus.
Q12. Will there be a share class requirement? What share classes will be available?
A12. Similar to Portfolio Builder, due to the rebalancing feature of the program, only one share class is permitted per model. Please refer to the Invesco prospectus to review share classes available for purchase in the new program.
Q13. How will I be able to view my clients’ accounts?
A13. Until the transaction is complete, you may continue to access your clients’ Portfolio Builder accounts in the same manner as you do currently. Once the accounts are transitioned to Invesco, you will access clients’ accounts via invesco.com/us. They will not be separately identified as Portfolio Builder or Asset Allocation Model accounts at Invesco.
Q14. How will my clients access their accounts?
A14. Until the transaction is complete, your clients may continue to access their OppenheimerFunds’ account in the same manner they do currently. When your clients’ accounts transition to the Invesco platform, they will receive a welcome letter from Invesco that will include instructions on how to register for online account access at invesco.com/us.
Q15. Can I create models and perform other model-related activities on the web in the new program?
A15. From invesco.com/us, advisors will have standard DST Vision access to these accounts. They will not have web access to perform the following activities in the new system: create models, change models, associate shareholders to a model, remove shareholders from a model or view all shareholders linked to a model.
Q16. How else will the web experience change for the financial advisor?
A16. No transactions such as purchases, redemptions, and changing models will be available on the website.
Q17. Will the statements change?
A17. Yes, beginning with the second quarter statement, clients will receive a consolidated Invesco statement reflecting their Portfolio Builder and non-Portfolio Builder accounts, if applicable. Traditional IRA and non-retirement Portfolio Builder and non-Portfolio Builder accounts will be consolidated and reported on one statement, while assets held in an employer-sponsored retirement plan will be reported separately. Although rate of return information will not appear on the statements, change in market value and percent of total allocation, and a pie chart will be shown. In addition, shareholders will have the ability to view asset allocation model accounts and non-asset allocation model accounts. Performance information can be obtained at invesco.com/us. Fund codes, tickers and fund names will be present. The new grey-scaled statements will have their new account number and not identify the accounts as “Portfolio Builder”.
Q18. How will the account number change?
A18. The new account numbers will not be identified with “PB” in front. For non-retirement accounts, Traditional and Roth IRAs shareholders will receive a welcome letter confirmation from Invesco with their new base account number. For employer-sponsored retirement plans, including SIMPLE, SEP/SARSEP IRA, Single K and 403(b) plans, shareholders’ accounts will be identified by the Plan ID, and SSN number.
Q19. Does Invesco anticipate enhancements for the asset allocation models in the future?
A19. Invesco is committed to exploring opportunities for making future enhancements and will continue to support your clients’ accounts.
Q20. If only one share class is permitted per asset allocation model, what happens to clients’ models if they’re held in Class C share assets that convert to Class A shares in accordance with Invesco’s policy that Class C shares automatically exchange to Class A shares on the 10-year anniversary of the purchase date?
A20. The C share holdings in the client’s asset allocation model will continue to balance based on the schedule they have elected. The converted Class A share assets cannot be rebalanced automatically after the share class conversion. A new asset allocation model must be requested and established for the A share assets after the share class conversion occurs. Financial advisors can direct the establishment of a Class A share model by contacting Invesco’s Client Services team at 800 959 4246 to obtain an Invesco Advisor Asset Allocation Form.
- ^In October 2018, OppenheimerFunds and Invesco, a premier investment management firm, announced that they will be joining forces. The closing of the Invesco-OppenheimerFunds transaction is anticipated in mid-2019, subject to regulatory and shareholder approvals and other customary closing conditions. Should the requisite approval be obtained allowing the Invesco-OppenheimerFunds transaction to close, your clients’ Portfolio Builder accounts will transition to Invesco’s platform.