TORONTO, Feb. 20, 2014 /CNW/ - PowerShares Canada announced today that
it will adjust the net asset value (NAV) of three TSX-listed
PowerShares exchange-traded funds (the "ETFs") effective Friday,
February 21, 2014.
PowerShares Fundamental High Yield Corporate Bond (CAD Hedged) Index ETF
[TSX: PFH] and PowerShares Senior Loan (CAD Hedged) Index ETF [TSX:
BKL] invest in one or more U.S. Regulated Investment Companies (RICs)
that earn and distribute qualified interest-related dividends.
The NAV adjustments are a result of the American Taxpayer Relief Act of 2012, which exempts qualifying income distributed by the relevant RICs to
foreign entities, including the ETFs, from U.S. withholding taxes.
Recognizing the value this exemption provides investors, PowerShares
Canada has reclaimed that portion of the taxes withheld in 2013.
The ETFs will record a tax reclaim amount on February 21, 2014, which
will result in an increase in the NAV and NAV per unit of the ETFs.
The NAV adjustments are as follows:
NAV per unit
PowerShares Fundamental High Yield
Corporate Bond (CAD Hedged) Index ETF
PowerShares Senior Loan (CAD Hedged)
PowerShares Tactical Bond ETF [TSX: PTB] is invested in PowerShares
Fundamental High Yield Corporate Bond (CAD Hedged) Index ETF [TSX:
PFH], and as a result, will also experience a change in its NAV.
The NAV impact is as follows:
NAV per unit
PowerShares Tactical Bond ETF
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.
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
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
ETFs are not diversified investments.
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
Standard & Poor's® and S&P® are registered trademarks of Standard & Poor's Financial Services LLC
("S&P") and have been sublicensed for certain purposes by Invesco
Canada Ltd. TSX is a registered trademark of TSX Inc. and LSTA is a
registered trademark of Loan Syndications and Trading Association and
both have been licensed for use by S&P Dow Jones Indices LLC and
Invesco Canada Ltd. The S&P/TSX Composite Low Volatility Index, S&P/TSX
Composite High Beta Index, S&P 500 Low Volatility Index (CAD Hedged),
S&P 500 High Beta Index (CAD Hedged) and S&P/LSTA U.S. Leveraged Loan
100 Index (CAD Hedged) are products of S&P Dow Jones Indices LLC, and
have been licensed for use by Invesco Canada Ltd. None of the Funds or
ETFs that utilize such indices are sponsored, endorsed, sold or
promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, their respective
affiliates, or third party licensors and neither S&P Dow Jones Indices
LLC, Dow Jones, S&P, their respective affiliates nor their third party
licensors make any representation regarding the advisability of
investing in such products.
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®, 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.
For further information:
Vice President, Corporate Affairs