TORONTO, Sept. 4, 2013 /CNW/ - In a continuing effort to deliver low-cost access to innovative asset classes, PowerShares Canada has reduced the management fee on PowerShares Senior Loan (CAD Hedged) Index ETF (TSX: BKL) by 0.10% to 0.80%. The fee reduction is effective Friday September 6, 2013.
Canada's first senior loan ETF, BKL provides access to an asset class that has historically delivered higher yield than other fixed-income securities of equal or higher credit quality and offers investors an added measure of security against borrower default. In addition, the low duration of senior loans may help to reduce a portfolio's overall interest-rate sensitivity.
"For investors concerned about the U.S. Federal Reserve's latest signals on tapering its bond-buying program, BKL may provide peace of mind," said Michael Cooke, Head of Distribution, PowerShares Canada. "Historically, senior loans have fared extremely well relative to other fixed-income securities in rising-rate environments, delivering attractive current income, reduced interest-rate sensitivity and the added security of assets backed by collateral."
BKL seeks to replicate, before fees and expenses, the performance of the S&P/LSTA (Loan Syndications and Trading Association) U.S. Leveraged Loan 100 Index (CAD Hedged). The index gives investors exposure to the largest 100 loan facilities drawn from a larger benchmark - the S&P/LSTA Leveraged Loan Index.
To learn more about PowerShares Canada, 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 largest investment management companies. A subsidiary of Invesco Ltd., Invesco Canada's singular focus is on investment management, offering a diversified suite of investment 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.
Ordinary brokerage commissions apply to purchases and sales of ETF units.
Commissions, management fees and expenses may all be associated with investments in mutual funds and exchange-traded funds (ETFs). Trailing commissions may be associated with investments in mutual funds. Mutual funds and ETFs are not guaranteed, their values change frequently and past performance may not be repeated. There are risks involved with investing in mutual funds and ETFs. Please read the prospectus for a complete description of risks relevant to the mutual fund or ETF. Copies are available from Invesco Canada Ltd. at www.powershares.ca.
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.
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.
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.
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Vice President, Corporate Affairs