Invesco PowerShares Capital Management LLC, a leading global
provider of exchange-traded funds (ETFs), announced today the
launch of the PowerShares Global Short Term High Yield Bond
Portfolio (PGHY) on the NYSE Arca.
PGHY provides investors access to short-term US
dollar-denominated, high-yield debt that is issued globally;
including sovereign, quasi-government and corporate bond
securities. PGHY has an expense ratio of 0.35% and is expected to
issue monthly distributions.
- PowerShares Global Short Term High Yield
Bond Portfolio (PGHY)
"We are excited to launch a timely product solution for income
investors looking for a potential protection against rising
interest rates," said Lorraine Wang, Invesco PowerShares senior
vice president of new product development. "The PowerShares global
Short Term High Yield Bond Portfolio (PGHY) provides a convenient
way for investors to gain exposure to a portfolio of high-yield
bonds from issuers around the globe, while taking on a relatively
low level of interest rate risk."
"Bonds with shorter maturities generally carry less duration
risk than bonds with longer maturities and can help investors
protect fixed-income portfolios against rising interest rates,"
added Joseph Becker, senior fixed-income product strategist at
Invesco PowerShares. "While high-yield bonds generally carry higher
credit risk, they also offer investors higher rates of income. We
believe today's exceptionally low interest rates, particularly at
the short end of the yield curve, position short-term, high-yield
bonds as an attractive investment for income seeking
investors."
The PowerShares Global Short Term High Yield Bond Portfolio
(PGHY) is based on the DB Global Short Maturity High Yield Bond
Index (Index). PGHY generally will invest at least 80% of its total
assets in bonds included in the Index. The Index tracks the
performance of US dollar-denominated, short-term, non-investment
grade bonds with three years or less to maturity; that are issued
by US and foreign corporations, as well as by supranational,
sovereign or sub-sovereign government entities. PGHY and the Index
are rebalanced quarterly and re-weighted annually.
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 $77 billion as of March
31, 2013, PowerShares ETFs trade on both US stock exchanges. For
more information, please visit us at invescopowershares.com or
follow us on Twitter @PowerShares.
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 retail,
institutional and high net worth 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.
Note: Not all products are available through all firms.
There are risks involved with investing in ETFs, including
possible loss of money. Shares are not actively managed and are
subject to risks similar to those of stocks, including those
regarding short selling and margin maintenance requirements.
Ordinary brokerage commissions apply. 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.
The Fund will invest in bonds with a short-term (three years or
less) maturity. Short-term maturity may have additional risks,
including interest rate changes over the life of a bond. The
average maturity of the Fund's investments will affect the
volatility of the Fund's share price.
All or a significant portion of the securities in which the Fund
will invest will be noninvestment grade securities that are
considered speculative. Non-investment grade securities have
additional risks, including higher default risk and decreased
market liquidity.
Global bonds are subject to the same risks as other debt issues,
notably credit risk, market risk, interest rate risk and liquidity
risk.
Risks of sovereign debt include the relative size of the debt
burden to the economy as a whole and the government debtor's policy
towards the International Monetary Fund and the political
constraints to which a government debtor may be subject.
Sub-sovereign government bonds represent the debt of state,
provincial, territorial, municipal, local or other political
sub-divisions, including other governmental entities or agencies,
other than sovereign governments. In addition to sovereign debt
risk, risks of investing in sub-sovereign debt include the fact
that such investments may or may not be issued by, or guaranteed as
to principal and interest by, the sub-sovereign's larger sovereign
entity.
The Fund may invest in obligations issued or guaranteed by
supranational entities, which may include, for example, entities
such as the International Bank for Reconstruction and Development
(the World Bank). If one or more shareholders of a supranational
entity fails to make necessary additional capital contributions,
the entity may be unable to pay interest or repay principal on its
debt securities, and the Fund may lose money on such
investments.
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 will invest in foreign bonds and, because foreign
exchanges may be open on days when the Fund does not price its
shares, the value of the non-US securities in the Fund's portfolio
may change on days when you will not be able to purchase or sell
your Shares.
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.
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 Unit aggregations only,
typically consisting of 50,000 shares.
Shares are not FDIC insured, may lose value and
have no bank guarantee.
PowerShares® is a registered trademark of Invesco PowerShares
Capital Management LLC (Invesco PowerShares). Invesco PowerShares
and Invesco Distributors, Inc. are indirect, wholly owned
subsidiaries of Invesco Ltd. Invesco Distributors, Inc. is the
distributor of the PowerShares Exchange-Traded Fund Trust II.
"Deutsche Bank" and the DB Global Short Maturity High Yield Bond
Index are reprinted with permission. © Copyright 2013 Deutsche Bank
AG. All rights reserved. "Deutsche Bank" is a service mark of
Deutsche Bank AG and has been licensed for use for certain purposes
by the adviser. The Fund is not sponsored, endorsed, sold or
promoted by Deutsche Bank AG or any of its affiliates of
subsidiaries. Deutsche Bank AG and Deutsche Bank Securities Inc.,
as Index Provider, make no representation, express or implied,
regarding the advisability of investing in this product. As the
Index Provider, Deutsche Bank AG and Deutsche Bank Securities Inc.
are licensing certain trademarks, the underlying Index and trade
names which are composed by Deutsche Bank AG and Deutsche Bank
Securities Inc. without regard to this Index, this product or any
investor.
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
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