Invesco PowerShares Capital Management LLC, a leading global
provider of exchange-traded funds (ETFs), announced today the
PowerShares Chinese Yuan Dim Sum Bond Portfolio (NYSE Arca: DSUM)
is expected to begin trading on Sept. 23, 2011. The Fund will
provide access to Chinese yuan-denominated "Dim Sum" bonds issued
and settled outside mainland China. DSUM will have an expense ratio
of 0.45% and is expected to issue monthly distributions.
"The Dim Sum bond market offers attractive coupons, and the
ability to participate in the appreciation potential of the yuan
over time," said Ben Fulton, Invesco PowerShares managing director
of global ETFs. "We believe the PowerShares Chinese Yuan Dim Sum
Bond Portfolio provides investors with both convenient, and low
cost(1) access to the yuan-denominated debt market."
The Dim Sum bond market was introduced in 2007 when the People's
Republic of China-incorporated financial institutions were first
allowed to issue yuan-denominated bonds offshore. Since then, the
market for Dim Sum bonds has seen significant growth, particularly
since its deregulation in July 2010. Dim Sum bonds are generally
issued in Hong Kong by governments, agencies, supranationals and
corporations.
The PowerShares Chinese Yuan Dim Sum Bond Portfolio is based on
the Citigroup Dim Sum (Offshore CNY) Bond Index. The Fund will
normally invest at least 90% of its total assets in Chinese
yuan-denominated bonds that comprise the Index. The Index measures
the performance of Chinese yuan-denominated "Dim Sum" bonds that
are issued and settled outside of Mainland China. The Index
includes fixed-rate securities issued by governments, agencies,
supranationals and corporations that have a minimum maturity of one
year and a minimum size outstanding of 1 billion yuan. The index is
managed by Citigroup Index LLC and is reconstituted on a monthly
basis.
Invesco PowerShares Capital Management LLC is Leading the
Intelligent ETF Revolution® through its family of more than 140
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 over $57 billion as of June
30, 2011, PowerShares ETFs trade on both U.S. stock exchanges. For
more information, please visit us at invescopowershares.com or
follow us on Twitter @PowerShares.
Invesco is a leading independent global investment manager,
dedicated to helping investors worldwide achieve their financial
objectives. By delivering the combined power of our distinctive
investment management capabilities, Invesco provides a wide range
of investment strategies and vehicles to our retail, institutional
and high net worth clients around the world. Operating in more than
20 countries, the company is listed on the New York Stock Exchange
under the symbol IVZ. Additional information is available at
www.invesco.com.
(1) Brokerage commissions may apply.
There are risks involved with investing in ETFs, including
possible loss of money. Shares are not actively managed and are
subject to risks including those regarding short selling and margin
maintenance requirements. Ordinary brokerage commissions may
apply.
Not FDIC Insured | May Lose Value | No Bank Guarantee
The Fund may invest in fixed-income securities, such as notes
and bonds, which carry interest rate and credit risk. Interest rate
risk refers to the risk that bond prices generally fall as interest
rates rise and vice versa. Credit risk is the risk of loss on an
investment due to the deterioration of an issuer's financial
health.
Adverse economic conditions, such as unfavorable or volatile
currency exchange rates and interest rates, political events or
other conditions may cause the Chinese government to intervene and
impose "capital controls," including the prohibition of, or
restrictions on, the ability to transfer currency, securities or
other assets.
There are special risks associated with investing in securities
designed to provide exposure to Chinese Yuan, such as
Yuan-denominated bonds in which the Fund will invest. The Chinese
government maintains strict currency controls and regularly
intervenes in the currency market. As a result, the value of the
Yuan, and the value of Yuan-denominated securities, may change
quickly and arbitrarily, potentially impacting the availability,
liquidity, and pricing of securities designed to provide offshore
investors with exposure to Chinese markets.
The Fund invests at least 80% of its assets in Chinese
Yuan-denominated bonds issued and settled outside of mainland
China. Because the Fund's net asset value (NAV) is determined in
U.S. dollars, the NAV could decline if the currency of the non-
U.S. market in which the Fund invests depreciates against the U.S.
dollar, even if the value of the Fund's holdings increases, as
measured in the foreign currency, including securities denominated
in the Chinese Yuan. In addition, if the Chinese currencies, the
Renminbi, which is traded in mainland China and the Yuan, which is
traded off-shore (traded as "CNH" in Hong Kong), diverge in value,
that divergence could negatively impact the Fund.
The Fund's underlying securities may be subject to call risk,
which may result in the Fund having to reinvest the proceeds at
lower interest rates, resulting in a decline in the Fund's
income.
The Fund's use of a representative sampling approach will result
in its holding a smaller number of securities than are in the
underlying Index, and may be subject to greater volatility.
The Fund is considered non-diversified and may be subject to
greater risks than a diversified fund.
Investments focused in a particular industry are subject to
greater risk, and are more greatly impacted by market volatility
than more diversified investments.
Unlike most ETFs, the Fund currently intends to effect
redemptions principally for cash and partially in-kind, rather than
primarily in-kind redemptions because of the nature of the Fund's
investments. As such, investments in Shares may be less tax
efficient than investments in conventional ETFs.
The Fund may invest in non-investment grade, or high-yield,
securities (junk bonds). High-yield securities have additional
risks, including interest rate changes, decreased market liquidity
and a larger amount of outstanding debt than investment grade
securities.
Sovereign debt securities are subject to the additional risk
that -- under some political, diplomatic, social or economic
circumstances -- some developing countries that issue lower quality
debt securities may be unable or unwilling to make principal or
interest payments as they come due. The fund may have limited legal
recourse against the issuer and/or guarantor of sovereign debt when
default occurs. As a holder of government debt, the Fund may be
requested to participate in the rescheduling of such debt and to
extend further loans to government debtors.
The Fund is not sponsored, endorsed, sold or promoted by
Citigroup Index LLC (Citigroup Index) or any of its affiliates
(collectively, Citigroup). Citigroup Index makes no representation
or warranty, express or implied, to the owners or prospective
owners of shares of the Fund or any member of the public regarding
the advisability of investing in securities generally or in the
Fund particularly, or the ability of the Fund to track the price
and yield performance of the Dim Sum Bond Index or the ability of
the Dim Sum Bond Index to track general bond market
performance.
Shares are not individually redeemable and owners of the shares
may acquire those shares from the Fund and tender those shares for
redemption to the Fund in Creation Units only, typically consisting
of aggregations of 50,000 shares.
Invesco Distributors, Inc. is the distributor of the PowerShares
Exchange-Traded Fund Trust II.
Note: Not all products available through all firms.
PowerShares® is a registered trademark of Invesco PowerShares
Capital Management LLC. Invesco PowerShares Capital Management LLC
and Invesco Distributors, Inc. are indirect, wholly owned
subsidiaries of Invesco Ltd.
An investor should consider the Fund's
investment objective, risks, charges and expenses carefully before
investing. For this and more complete information about the
Fund call 800 983 0903 or visit invescopowershares.com for a
prospectus. Please read the prospectus carefully before
investing.
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Media Contacts: Kristin Sadlon Porter Novelli
212-601-8192 Email Contact Bill Conboy 303-415-2290 Email
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