Providing exposure to intermediate-term
corporate bonds, real estate
TORONTO, Sept. 12, 2017 /CNW/ - Canadians continue to
seek income from their investments, but they may require
diversification beyond government bonds.
To help investors diversify their income portfolios, Invesco
today announced the launch of PowerShares 1-10 Year Laddered
Investment Grade Corporate Bond Index ETF (listed on NEO Exchange
as "PIB") and PowerShares S&P/TSX REIT Income Index ETF (listed
on TSX as "REIT"). Both PIB and REIT are designed to provide a
monthly distribution.
"Monthly income is the primary investment goal for many
investors. A diversified portfolio that includes both bonds and
real estate securities can deliver the income they need, with the
added benefit of growth potential," says Christopher Doll, Vice President, Product and
Business Strategy, PowerShares Canada.
The initial offerings of PIB and REIT are now closed, and units
in these ETFs will be available for trading when the markets open
today.
PIB seeks to replicate, to the extent reasonably possible and
before fees and expenses, the performance of the FTSE TMX Canada
Investment Grade 1-10 Year Laddered Corporate Bond Index, or any
successor thereto.
The portfolio provides exposure to corporate bonds, which
generally provide a higher yield than government-issued bonds of
similar maturity and credit quality. As a laddered portfolio, PIB
helps manage reinvestment risk by spreading out bond maturities.
The portfolio's short-term bonds reduce interest-rate sensitivity
while its medium-term holdings tend to provide higher yield.
REIT seeks to replicate, to the extent reasonably possible
and before fees and expenses, the performance of the S&P/TSX
Capped REIT Income Index, or any successor thereto.
The portfolio delivers exposure to Canadian real estate
investment trusts ("REITs"), which have historically provided
higher yields than the broad equity market. It provides exposure to
a cross-section of retail, residential, office and industrial
REITs. This unique asset class offers the potential for both income
and capital growth.
Both PIB and REIT are competitively priced, with management fees
of 0.25% and 0.45%, respectively.
For more information, please visit invesco.ca. You can
also connect with Invesco on Twitter (@InvescoCanada), LinkedIn,
Facebook or through the Invesco Canada blog.
About Invesco Ltd.
Invesco Ltd. is an independent
investment management firm dedicated to delivering an investment
experience that helps people get more out of life. NYSE: IVZ;
invesco.com.
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
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.
The S&P/TSX Composite Low Volatility Index, S&P 500 Low
Volatility Index, S&P BMI International Developed Low
Volatility Index, S&P BMI Emerging Markets Low Volatility
Index, S&P/TSX Capped REIT Income Index and S&P/LSTA U.S.
Leverage Loan 100 Index (the "Indices") are products of S&P Dow
Jones Indices LLC, and have been licensed for use by Invesco Canada
Ltd. Invesco Canada Ltd.'s PowerShares Index ETFs are not
sponsored, endorsed, sold or promoted by S&P Dow Jones Indices
LLC, its affiliates, LSTA or TSX, and none of such parties makes
any representation regarding the advisability of investing in such
product.
S&P®, S&P 500®, S&P 500 Low Volatility Index®,
S&P 500® Low Volatility High Dividend Index™, and S&P
Global 1200 Ex-Canada Low Volatility High Dividend Index™ are
registered trademarks of Standard & Poor's Financial Services
LLC and have been licensed for use by S&P Dow Jones Indices LLC
and sublicensed for certain purposes by Invesco Canada Ltd. LSTA®
is a registered trademark of Loan Syndications and Trading
Association and has been licensed for use by S&P Dow Jones
Indices LLC and Invesco Canada Ltd. TSX is a trademark of TSX Inc.
("TSX") and has been licensed for use by
S&P Dow Jones Indices LLC and Invesco Canada Ltd.
FTSE TMX Global Debt Capital Markets Inc. ("FTDCM"), FTSE
International Limited ("FTSE"), the London Stock Exchange Group
companies (the "Exchange") or TSX INC. ("TSX" and together with
FTDCM, FTSE and the Exchange, the "Licensor Parties"). The Licensor
Parties make no warranty or representation whatsoever, expressly or
impliedly, either as to the results to be obtained from the use of
the FTSE TMX Canada Investment Grade 1-5 Year Laddered Corporate
Bond Index, the FTSE TMX Canada 1-10 Year Laddered Investment Grade
Corporate Bond Index and FTSE TMX Canada Real Return Federal
Non-Agency Bond Index ("the Index") and/or the figure at which the
said Index stands at any particular time on any particular day or
otherwise. The Index is compiled and calculated by FTDCM and all
copyright in the Index values and constituent lists vests in FTDCM.
The Licensor Parties shall not be liable (whether in negligence or
otherwise) to any person for any error in the Index and the
Licensor Parties shall not be under any obligation to advise any
person of any error therein.
FTSE® is a trade mark owned by the London Stock Exchange Group
companies and is used by FTSE International Limited ("FTSE") under
license. 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.
PowerShares Canada is a registered business name of Invesco
Canada Ltd.
Invesco® and all associated trademarks are trademarks
of Invesco Holding Company Limited, used under licence.
PowerShares® and all associated trademarks are
trademarks of Invesco PowerShares Capital Management LLC (Invesco
PowerShares), used under licence.
© Invesco Canada Ltd., 2017
SOURCE Invesco Canada Ltd.