Suite of Fundamental Index® ETFs tops $5 billion AUM globally
TORONTO, July 24, 2013 /CNW/ - PowerShares Canada, an affiliate of Invesco PowerShares Capital Management LLC (Invesco PowerShares), a leading global provider of exchange-traded funds (ETFs), announced the PowerShares suite of fundamental index ETFs recently surpassed US$5 billion in assets under management (AUM) globally.
PowerShares fundamental-weighted index ETFs trade in Canada, the U.S. and Europe.
"Since launching in 2009, PowerShares Canada has been focused on providing investors with a diverse family of 'smart beta' strategies," said Michael Cooke, Head of Distribution, PowerShares Canada. "Investors looking for higher risk-adjusted returns than those of a cap-weighted benchmark are readily adopting ETFs that employ smart beta strategies, such as fundamental, low-volatility and high-beta indexing."
PowerShares Canada's Fundamental Index® ETFs and mutual funds are based on the Research Affiliates® Fundamental Index® strategy. This index methodology selects and weights constituents using four fundamental measures of company size: book value, cash flow, sales and dividends. By using four fundamental factors rather than one, this methodology is a more robust means of capturing a company's true economic footprint.
"PowerShares Canada's fundamentals-weighted funds and ETFs seek to provide investors with higher risk-adjusted returns compared to cap-weighted benchmarks," said Cooke. "We believe these funds and ETFs provide investors with an important alternative to passive cap-weighted strategies and also represents great value compared to many actively managed portfolios in the marketplace when relative performance and fees are considered."
PowerShares Canada currently offers four equity mutual funds, two equity ETFs and one fixed-income ETF based on the RAFI Fundamental Index® methodology.
"We are proud to partner with PowerShares Canada on their suite of funds and ETFs," said Michael Larsen, Global Head of Affiliate Relations at Research Affiliates, LLC. "In an era of lower expected returns, it is important to provide investors better tools for their toolkit."
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 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.
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.
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.
FTSE® is a trade mark owned by the London Stock Exchange Group companies and is used by FTSE International Limited ("FTSE") under licence. The FTSE RAFI® Index Series is calculated by FTSE in conjunction with Research Affiliates, LLC ("RA"). Neither FTSE nor RA sponsor, endorse or promote this product and are not in any way connected to it and do not accept any liability in relation to its issue, operation and trading. Any intellectual property rights in the index values and constituent list vests in FTSE.
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 Affiliates, LLC.
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