TORONTO, March 12, 2013 /CNW/ - PowerShares Canada announced today that
it will adjust the net asset value ("NAV") of two TSX-listed
PowerShares exchange-traded funds (the "ETFs"), effective Wednesday,
March 13, 2013.
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 (the "Act"), which was signed into law on January 2, 2013. The Act
retroactively extended the U.S. withholding tax exemption for
qualifying income distributed by the relevant RICs to foreign entities,
including the ETFs.
The ETFs had previously benefited from an exemption from U.S.
withholding tax on qualifying income received from investments in RICs.
The law granting that exemption expired in 2012, subjecting the ETFs to
withholding tax at a rate of 15% for part of the year.
Recognizing the value this exemption provides to investors, PowerShares
Canada has reclaimed that portion of the taxes withheld in 2012.
The ETFs will record a tax reclaim amount on March 13, 2013, which will
result in an increase in the NAV and NAV per unit of the ETFs.
The NAV adjustments are as follows:
impact ($ per
PowerShares Fundamental High Yield
Corporate Bond (CAD Hedged) Index ETF
PowerShares Senior Loan (CAD Hedged) Index
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 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.
"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
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.
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., 2013
SOURCE: Invesco Canada Ltd.
For further information:
Vice President, Corporate Affairs