Two are first of their kind in Canada
TORONTO, May 6, 2015 /CNW/ - In response to investor
demand, PowerShares Canada today announced the listing of three new
smart beta exchange-traded funds (ETFs) on the Toronto Stock
Exchange (TSX). Two of the ETFs are the first of their kind to be
listed in Canada.
All three ETFs have now closed the initial offerings of units
and will be available for trading on TSX when the market opens
today.
"These distinct offerings truly demonstrate the diversity of
smart beta strategies," says Jamie
Kingston, Senior Vice President, Product Management and
Development, Invesco Canada. "Not only do they break the link
between price and portfolio weight, but they provide investors with
unique strategies to achieve a variety of investment
objectives."
PowerShares Low Volatility Portfolio ETF (PLV) is the
first Canada-listed global asset
allocation ETF to employ a low-volatility strategy in both its
fixed income and equity allocations. PLV is actively managed by
Invesco Advisers, Inc., and it seeks to generate capital growth and
modest income over the long term by investing, directly or
indirectly, primarily in global equity securities and fixed-income
securities.
Invesco Advisers will apply a proprietary investment process
that analyzes the risks associated with the following asset classes
in the following benchmark target allocations:
- 30% Canadian short-term bonds
- 20% Canadian equity securities
- 50% global equity securities
The portfolio will be rebalanced on a monthly basis.
"For investors concerned about volatility but seeking to
maintain equity-market exposure, a low-volatility strategy may help
reduce downside risk," says Kingston. "PLV also provides exposure
to shorter-term bonds, which are less sensitive to interest-rate
changes and may provide a good defence against rates eventually
rising."
PowerShares Global Shareholder Yield ETF (PSY) represents
another first in the Canadian ETF market, delivering exposure to
U.S. and international equities of companies with a strong track
record of returning free cash flow to shareholders.
"Companies typically return free cash flow to shareholders in
one of two ways: share buybacks and dividends," says Kingston. "PSY
gives investors exposure to both in a globally diversified equity
portfolio."
PSY seeks to generate income and capital growth over the long
term by investing, directly or indirectly, primarily in equities
from developed markets globally. To achieve this, PSY will hold
securities of four PowerShares ETFs in the following strategic
target allocations:
- 25% PowerShares Dividend Achievers™ Portfolio (NYSE Arca:
PFM)
- 25% PowerShares International Dividend Achievers™ Portfolio
(NYSE Arca: PID)
- 25% PowerShares BuyBack Achievers™ Portfolio (NYSE Arca:
PKW)
- 25% PowerShares International BuyBack Achievers™ Portfolio
(NYSE Arca: IPKW)
This strategy is also available for purchase in U.S. dollars,
listed on TSX as PSY.U.
PowerShares FTSE RAFI Global Small-Mid Fundamental ETF
(PZW) seeks to generate capital growth over the long term by
investing, directly or indirectly, primarily in equities of small-
and medium-sized companies from developed markets globally.
In order to achieve its investment objective, PZW will hold
securities of the following PowerShares portfolios in the following
strategic target allocations:
- 50% PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (Nasdaq:
PRFZ)
- 50% PowerShares FTSE RAFI Developed Markets ex-U.S. Small-Mid
Portfolio (NYSE Arca: PDN)
"By breaking the link between price and portfolio weight,
fundamental index strategies do not allow the market to dictate the
weight a stock receives in an index," says Kingston. "An index
based on corporate fundamentals is less susceptible to speculation
than an index based solely on market capitalization."
The investment objectives of these underlying funds is to seek
investment results that generally correspond (before fees and
expenses) to the price and yield of the FTSE RAFI US 1500 Small-Mid
Index and the FTSE RAFI Developed ex US Mid Small 1500 Index,
respectively (each, an "underlying index").
This strategy is also available for purchase in U.S. dollars,
listed on TSX as PZW.U.
The ability to purchase USD units is offered as a convenience
for investors and will not act as currency hedge between the
Canadian dollar and the U.S. dollar.
To learn more about PowerShares Canada's smart beta ETFs and
funds, visit www.powershares.ca, or connect with Invesco Canada on
Twitter (@InvescoCanada), LinkedIn or Facebook.
About Invesco Canada Ltd.
Invesco Canada Ltd.,
operating under three distinct yet complementary product brands
(Trimark, Invesco and PowerShares), is one of Canada's leading investment management
companies. A subsidiary of Invesco Ltd., Invesco Canada's singular
focus is on investment management, offering a diversified suite of
solutions to institutions, organizations, companies and individual
investors across Canada and around
the world. Additional information is available at
www.invesco.ca.
About Invesco Ltd.
Invesco Ltd. is a leading
independent global investment management firm, 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 clients around the world.
Operating in more than 20 countries, the firm is listed on the New
York Stock Exchange under the symbol IVZ. Additional information is
available at www.invesco.com.
FTSE® is a trade mark owned by the London Stock
Exchange Group companies and is used by FTSE International Limited
("FTSE") under licence. The FTSE RAFI® Index Series is
calculated by FTSE in conjunction with Research Affiliates LLC
("RA"). Neither FTSE nor RA sponsor, endorse or promote this
product and are not in any way connected to it and do not accept
any liability in relation to its issue, operation and trading. Any
intellectual property rights in the index values and constituent
list vests in FTSE.
Investors should be aware of the risks associated with data
sources and quantitative processes used in our investment
management process. Errors may exist in data acquired from
third-party vendors, the construction of model portfolios, and in
coding related to the index and portfolio construction process.
While Research Affiliates takes steps to identify data and process
errors so as to minimize the potential impact of such errors on
index and portfolio performance, we cannot guarantee that such
errors will not occur.
"Fundamental Index®" and/or "Research Affiliates
Fundamental Index®" and/or "RAFI®" and/or all
other RA trademarks, trade names, patented and patent-pending
concepts are the exclusive property of Research Affiliates,
LLC.
Commissions, management fees and expenses may all be associated
with investments in exchange-traded funds (ETFs). ETFs are not
guaranteed, their values change frequently and past performance may
not be repeated. Please read the prospectus before investing.
Copies are available from Invesco Canada Ltd. at
www.powershares.ca.
There are risks involved with investing in ETFs. Please read the
prospectus for a complete description of risks relevant to the ETF.
Ordinary brokerage commissions apply to purchases and sales of ETF
units.
Most PowerShares ETFs seek to replicate, before fees and
expenses, the performance of the applicable index, and are not
actively managed. This means that the sub-advisor will not attempt
to take defensive positions in declining markets and the ETF will
continue to provide exposure to each of the securities in the index
regardless of whether the financial condition of one or more
issuers of securities in the index deteriorates. In contrast, if a
PowerShares ETF is actively managed, then the sub-advisor has
discretion to adjust that PowerShares ETF's holdings in accordance
with the ETF's investment objectives and strategies.
ETFs are not diversified investments.
PowerShares Canada is registered business name of Invesco Canada
Ltd.
This piece was produced by Invesco Canada Ltd.
Invesco® and all associated trademarks are trademarks
of Invesco Holding Company Limited, used under licence.
PowerShares®, Leading the Intelligent ETF
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of Invesco PowerShares Capital Management LLC (Invesco
PowerShares), used under licence.
© Invesco Canada Ltd., 2015
SOURCE Invesco Canada Ltd.