TORONTO, July 21, 2014 /CNW/ - The appetite for
fixed-income investments remains strong among Canadian investors
despite a prolonged period of record-low yields. When interest
rates eventually rise, many Canadian fixed-income investors may be
surprised by the negative effect on their portfolios.
Historically, a laddered bond strategy has helped reduce the
risks associated with rising interest rates, but managing a
fixed-income portfolio requires expertise.
PowerShares Canada today announced the listing of two new smart
beta exchange-traded funds (ETFs) on the Toronto Stock Exchange
(TSX). Both ETFs have now closed the initial offerings of units and
will be available for trading on TSX when the market opens
today.
"As an innovator in the Canadian ETF market, PowerShares Canada
recognizes the value of smart beta investment strategies," said
Michael Cooke, Head of Distribution,
PowerShares Canada. "Our new additions provide investors with
intelligent access to short-term fixed-income investments."
PowerShares 1-3 Year Laddered Floating Rate Note Index ETF
(PFL) seeks to replicate, before fees and expenses, the
performance of the FTSE TMX Canada 1-3 Year Laddered Floating Rate
Note Index. The index is designed to give investors exposure to a
laddered basket of Canadian government and corporate
investment-grade floating-rate notes. PFL has a low management fee
of just 0.20%.
PowerShares LadderRite U.S. 0-5 Year Corporate Bond Index ETF
(USB/USB.U) seeks to replicate, before fees and expenses, the
performance of the NASDAQ LadderRite 0-5 Year USD Corporate Bond
Index. The index is designed to give investors exposure to a
laddered basket of U.S.-dollar-denominated, investment-grade
corporate bonds. USB has a low management fee of 0.25%. The ticker
symbol "USB" represents Canadian-dollar-denominated units, while
"USB.U" represents U.S.-dollar-denominated units.
"The low interest rates paid on government bonds makes
short-term U.S. corporate debt and floating-rate notes quite
attractive to investors seeking yield," Cooke said. "Both the
laddering structure and the short duration of the underlying
securities help reduce interest-rate sensitivity."
PFL and USB/USB.U complement PowerShares Canada's existing suite
of TSX-listed fixed-income ETFs, which includes:
- PowerShares Tactical Bond ETF (PTB)
- PowerShares 1-5 Year Laddered Investment Grade Corporate Bond
Index ETF (PSB)
- PowerShares Ultra Liquid Long Term Government Bond Index ETF
(PGL)
- PowerShares Senior Loan (CAD Hedged) Index ETF (BKL)
- PowerShares Fundamental High Yield Corporate Bond (CAD Hedged)
Index ETF (PFH)
To learn more about TSX-listed PowerShares ETFs, please visit
www.powershares.ca.
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.
U.S.-dollar-denominated units do not provide a currency hedge
between the Canadian dollar and the U.S. dollar.
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, FTSE TMX Canada Ultra Liquid Long Government Bond Index
and FTSE TMX Canada 1-3 Year Laddered Floating Rate Note 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.
"TMX" is a trade mark of TSX Inc. and is used under licence.
"FTSE®" is a trade mark of FTSE International Limited in
Canada, and Taiwan and FTSE®" is a trade mark of the
London Stock Exchange Group companies in the rest of the world, and
is used by FTDCM under licence".
NASDAQ®, OMX®, and NASDAQ OMX®
are registered trademarks of The NASDAQ OMX Group, Inc. ("NASDAQ
OMX") and LadderRite® is a registered trademark of
LadderRite Portfolios LLC ("LadderRite"). NASDAQ®,
OMX®, NASDAQ OMX® and LadderRite®
are collectively the "Marks". The Marks are used under licence to
PowerShares Capital Management LLC and Invesco Canada Ltd. The
Product(s) have not been passed on by NASDAQ OMX or LadderRite as
to their legality or suitability. The Product(s) are not issued,
endorsed, sold, or promoted by NASDAQ OMX or LadderRite, and NASDAQ
OMX AND LADDERRITE MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH
RESPECT TO THE PRODUCT(S).
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
Revolution® and all associated trademarks are trademarks
of Invesco PowerShares Capital Management LLC (Invesco
PowerShares), used under licence.
© Invesco Canada Ltd., 2014
SOURCE Invesco Canada Ltd.