PowerShares 1-5 Year Laddered All Government
Bond Index ETF (PGB)
TORONTO, Feb. 28, 2018 /CNW/ - To help Canadians
achieve their financial goals, Invesco today announced the launch
of PowerShares 1-5 Year Laddered All Government Bond Index ETF
(PGB).
Despite rising interest rates, many investors may find yields on
traditional Government of Canada
bonds insufficient to fulfil their income needs. PGB seeks to
address this by selecting investment grade government bonds that
offer a higher yield than traditional federal non-agency government
issues, including agency, provincial and municipal.
"A rising rate environment can be challenging for investors –
while yields may rise, the value of longer-term government bonds
may fall," says Christopher Doll,
Vice President, Sales and Strategy, PowerShares Canada.
"Shorter-term investment grade bonds tend to provide a measure of
stability to a fixed income portfolio."
The initial offering of PGB has now closed and it will be
available for trading on the Aequitas NEO Exchange when the market
opens today.
PGB seeks to replicate, to the extent reasonably possible and
before fees and expenses, the performance of the FTSE TMX Canada
1-5 Year All Government Laddered Bond Index, or any successor
thereto.
The underlying index is comprised of investment grade bonds
issued by the Government of Canada, agencies, provinces and
municipalities. As a laddered portfolio, PGB helps manage
reinvestment risk by spreading out bond maturities.
PGB is competitively priced, with a management fee of 0.15% and
offers the following potential benefits:
- Enhanced yield: The inclusion of agency, provincial and
municipal bonds in a government bond portfolio offers investors the
potential for higher yield than a portfolio comprised of just
federal non-agency government bonds of similar maturity and credit
quality
- Less interest-rate sensitivity: As interest rates rise,
the value of a bond typically falls. Holding shorter-term bonds,
which are less sensitive to such interest-rate changes, can be a
good defensive strategy in a rising-rate environment
- Reinvestment risk management: Reinvestment risk is the
risk that future proceeds will have to be reinvested at a lower
interest rate. Bond ladders help manage the risk by spreading out
bond maturities
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 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, trailing commissions, management fees and expenses
may all be associated with mutual fund investments. Mutual funds
are not guaranteed, their values change frequently and past
performance may not be repeated. Please read the simplified
prospectus before investing. Copies are available from your advisor
or 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, the FTSE TMX Canada 1-5 Year All Government
Laddered 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.
* Invesco® and all associated trademarks are
trademarks of Invesco Holding Company Limited, used under
licence.
© Invesco Canada Ltd., 2018
SOURCE Invesco Canada Ltd.