MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication
an InvestmentWires' Publication
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MutualFundWire.com
The insiders' edge for 40 Act industry executives!
an InvestmentWires' Publication |
|
Wednesday, February 27, 2008 PowerShares Granted Exemptive Relief for Active ETFs After years of dashed hopes, actively managed ETFs are another step closer to becoming a reality. Today, PowerShares said it has become the first ETF provider to receive exemptive relief from the SEC for its actively managed ETFs in registration. Of the four ETFs in registration, two will be sub-advised by Invesco Institutional and two will be sub-advised by AER Advisors. Other companies working on actively managed ETFs are: Bear Stearns Asset Management, Vanguard and XShares. Company Press Release PowerShares Capital Management LLC announced today it is the first exchange-traded fund (ETF) provider to receive exemptive relief from the U.S. Securities and Exchange Commission for actively managed ETFs in registration. PowerShares' four active ETFs will provide investors with access to active management in an ETF structure. Two of the funds will be sub-advised by Invesco Institutional (N.A.), Inc. and two will be sub-advised by AER Advisors, Inc. "PowerShares is proud to be the first ETF provider to be granted SEC exemptive relief to offer actively managed equity and fixed-income ETF portfolios," said Bruce Bond, president and CEO of PowerShares. "This is an important milestone for the ETF industry and underscores PowerShares' commitment to innovation and ability to leverage Invesco's broad investment management capabilities to provide investors with new and innovative products." The anticipated fund names are as follows: -- PowerShares Active AlphaQ Fund -- PowerShares Active Alpha Multi-Cap Fund -- PowerShares Active Mega-Cap Fund -- PowerShares Active Low Duration Fund PowerShares Active AlphaQ Fund seeks to provide long-term capital appreciation by investing in a portfolio of 50 Nasdaq-listed securities selected pursuant to a unique stock screening methodology developed by AER Advisors, Inc. ("AER") AER's investment methodology is designed to achieve returns in excess of the NASDAQ 100® Index by focusing on the stocks identified through AER's proprietary "NOW" ranking system. The Fund's portfolio holdings will be disclosed daily on the Fund's website. PowerShares Active Alpha Multi-Cap Fund seeks to provide long-term capital appreciation by investing in a portfolio of 50 securities selected pursuant to a unique stock screening methodology developed by AER Advisors, Inc. AER's investment methodology is designed to achieve returns in excess of the S&P 500® Index by focusing on the stocks identified through AER's proprietary "NOW" ranking system. The Fund's portfolio holdings will be disclosed daily on the Fund's website. PowerShares Active Mega-Cap Fund seeks to provide long-term growth of capital by investing primarily in the equity securities of mega-capitalization companies according to a quantitative approach developed by Invesco Institutional (N.A.), Inc. The methodology seeks to outperform its benchmark, the Russell Top 200® Index, by employing a systematic approach to portfolio management that includes quantitative models based on fundamental and technical evaluations and an optimization process that seeks to effectively manage relative risk. The Fund's portfolio holdings will be disclosed daily on the Fund's website. PowerShares Active Low Duration Fund seeks to provide total return by investing in a portfolio of U.S. government and corporate debt securities selected by Invesco Institutional (N.A.), Inc. The Fund seeks to outperform the benchmark, Lehman Brothers 1-3 Year US Treasury Index, by applying an actively managed top-down portfolio construction and bottom-up security selection total return strategy. The portfolio's effective duration is estimated to be in the range of zero to three years. The Fund's portfolio holdings will be disclosed daily on the Fund's website. PowerShares Capital Management LLC is leading the intelligent ETF revolution through its family of more than 100 domestic and international exchange-traded funds, which seek to outperform traditional benchmark indexes while providing advisors and investors access to an innovative array of focused investment opportunities. With franchise assets of over $35 billion, PowerShares ETFs trade on major U.S. stock exchanges. For more information, visit www.powershares.com. PowerShares is a part of Invesco, Ltd. a leading independent global investment management company, dedicated to helping people worldwide build their financial security. By delivering the combined power of our distinctive worldwide investment management capabilities, including AIM, Atlantic Trust, Invesco, Perpetual, PowerShares, Trimark, and WL Ross, Invesco provides a comprehensive array of enduring investment solutions for retail, institutional and high net worth clients around the world. Operating in 20 countries, the company is currently listed on the New York Stock Exchange under the symbol IVZ. Additional information is available at www.invesco.com. Risks of Owning Actively Managed Exchange-Traded Funds There are risks involved with investing in the Funds. The Funds are actively managed and because actively managed ETFs have not previously been traded, there can be no assurance as to whether and to what extent the Funds' Shares will trade at premiums or discounts to net asset value. Shares are not FDIC insured, may lose value and have no bank guarantee. You may lose money investing in the Funds. The PowerShares Active AlphaQ Fund and PowerShares Active Alpha Multi-Cap Fund may be subject to market risk, equity risk and small- and medium-sized company risk. The PowerShares Active Mega-Cap Fund and PowerShares Active Low Duration Fund may be subject to risks associated with the use of derivatives, engaging in leverage transactions, and their status as non-diversified portfolios. The value of derivatives may rise or fall more rapidly than other investments. The use of leverage may cause the Funds' portfolio to liquidate portfolio positions when it may not be advantageous to do so to satisfy its obligations. Additionally, the PowerShares Active Low Duration Fund may be subject to risks associated with interest rate fluctuations, investments in high yield below investment grade securities, and mortgage- and asset-backed securities. Please read the prospectus for more information. A I M Distributors, Inc. is the distributor of the PowerShares Actively Managed Exchange-Traded Fund Trust. An investor should consider each Fund's investment objective, risks, charges and expenses carefully before investing. The prospectus contains this and other information about the Funds. For more complete information about the Funds or to obtain a prospectus, call 800.983.0903. Please read the prospectus carefully before investing. The information in the prospectus is not complete and may be changed. The Funds may not sell their Shares until the registration statement filed with the Securities and Exchange Commission is effective. The prospectus is not an offer to sell the Funds' Shares, and the Funds are not soliciting an offer to buy their Shares in any jurisdiction where the offer or sale is not permitted. Printed from: MFWire.com/story.asp?s=17533 Copyright 2008, InvestmentWires, Inc. All Rights Reserved |