PowerShares Capital Management
has filed with the SEC to launch 11 fixed-income ETFs. One of the offerings included in the Wheaton, Illinois-based company's filing, the PowerShares Emerging Markets Sovereign Debt Portfolio
, is based on the soon-to-be launched DB Emerging Markets USD Liquid Balanced Index and is expected to begin trading in October.
PowerShares Capital Management LLC, a leading provider of exchange-traded funds (ETFs), announced today it has filed a registration statement with the U.S. Securities and Exchange Commission (SEC) for 11 new fixed-income ETFs. The PowerShares Emerging Markets Sovereign Debt Portfolio included in the filing is expected to begin trading in October.
"The Emerging Markets Sovereign Debt Portfolio represents another first for the ETF marketplace," said Bruce Bond, President of PowerShares Capital Management. "The underlying Deutsche Bank index is enhanced and seeks to both optimize performance and improve liquidity. It seeks to deliver strong investor value by providing intelligent and convenient access to a more difficult-to-reach asset class. The ETF structure also provides the added benefits of intraday liquidity and tax efficiency."
The PowerShares Emerging Markets Sovereign Debt Portfolio is based on the soon to be launched DB Emerging Markets USD Liquid Balanced Index. The index will track the performance of a select basket of liquid emerging market U.S. dollar-denominated government bonds. Countries eligible for inclusion in the DB Emerging Markets USD Liquid Balanced Index will be evaluated annually on a defined set of qualifying criteria established by Deutsche Bank. Membership will be optimized on a quarterly basis based on ratings, size, liquidity and other considerations.
This fixed-income innovation from PowerShares is for investors who seek a convenient, low-cost approach to investing in a portfolio of emerging markets sovereign debt securities. The portfolio may be suitable for long-term investing, and may also be used as an asset allocation and a risk-control tool.
PowerShares Capital Management LLC is leading the intelligent ETF revolution through its family of more than 90 PowerShares XTF™ domestic and international exchange-traded funds, which seek to outperform traditional benchmark indexes while providing advisors and investors access to an innovative array of focused investment opportunities. PowerShares XTF are based on the Intellidex™ methodology, which applies rules-based quantitative analysis to select portfolios of securities that have the greatest investment merit and the highest potential for capital appreciation while controlling individual stock risk. With franchise assets of nearly $35 billion, PowerShares XTF trade on all three U.S. stock exchanges and the PowerShares QQQ™, which tracks 100 of the NASDAQ's fastest-growing companies, is the most actively traded equity security in the world. For more information, please visit us at www.powershares.com.
PowerShares is a part of INVESCO PLC, a leading independent global investment manager dedicated to helping people worldwide build their financial security. Operating under the AIM, AIM Trimark, Atlantic Trust, Perpetual, PowerShares and WL Ross & Co. brands, INVESCO PLC strives to deliver outstanding products and services through a comprehensive array of enduring investment solutions for its retail, institutional and private wealth management clients around the world. The company, which had approximately $499 billion in assets under management as of July 31, 2007, is listed on the London, New York and Toronto stock exchanges with the symbol "IVZ." Additional information is available at www.invesco.com.
Exchange-traded funds are made up of publicly traded securities that can and will move higher and lower with market movements. An investment in the Fund involves risks similar to those of investing in any fund of fixed income securities traded on exchanges. You should anticipate that the value of the shares of each fund will advance or decline more or less in correlation with the advance or decline in value of the applicable index. The Funds are not actively managed, and shares of the Funds may trade at or below the Funds' NAV. Exchange-traded funds are subject to risks similar to those of stocks, including risks associated with short-selling and margin account maintenance. Ordinary brokerage commissions apply.
All fixed-income securities are subject to two types of risk: credit risk and interest rate risk. Credit risk refers to the possibility that the issuer of a security will be unable to make interest payments and/or repay the principal on its debt. Interest rate risk refers to fluctuations in the value of a fixed-income security resulting from changes in the general level of interest rates. When the general level of interest rates goes up, the prices of most fixed-income securities go down. When the general level of interest rates goes down, the prices of most fixed income securities go up.
Global bonds are subject to the same risks as other debt issues, notably credit risk, market risk and liquidity risk. To a limited extent, they may also be subject to certain sovereign risks. Generally, investments in the securities of non-U.S. issuers involve risks beyond those associated with investments in U.S. securities. These additional risks may include greater market volatility, the availability of less reliable financial information, higher transactional costs, taxation by foreign governments, decreased market liquidity and political instability.
Investments in sovereign debt securities involve special risks. These may include, but are not limited to: the governmental authority that controls the repayment of the debt may be unwilling or unable to repay the principal and/or interest when due in accordance with the terms of such securities due to: the extent of its foreign reserves; the availability of sufficient foreign exchange on the date a payment is due; the relative size of the debt service burden to the economy as a whole; or the government debtor's policy towards the International Monetary Fund and the political constraints to which a government debtor may be subject. If an issuer of sovereign debt defaults on payments of principal and/or interest, the Fund may have limited legal recourse against the issuer and/or guarantor. In certain cases, remedies must be pursued in the courts of the defaulting party itself, and the Fund's ability to obtain recourse may be limited.
Investments in emerging market sovereign debt involve special risk beyond that of an investment in sovereign debt of more developed nations. Please see a prospectus for complete risk information.
A I M Distributors, Inc. is the distributor of the PowerShares Global Exchange-Traded Fund Trust.
"Deutsche Bank" and "DB Emerging Market USD Liquid Balanced Index(SM)" are service marks of Deutsche Bank AG and have been licensed for use for certain purposes by PowerShares. The above ETF product is not sponsored, endorsed, sold or promoted by Deutsche Bank AG or any of its affiliates of subsidiaries. Deutsche Bank AG and Deutsche Bank Securities Inc., as Index Provider, make no representation, express or implied, regarding the advisability of investing in this product. As the Index Provider, Deutsche Bank AG and Deutsche Bank Securities Inc. are licensing certain trademarks, the underlying Index and trade names which are composed by Deutsche Bank AG and Deutsche Bank Securities Inc. without regard to this Index, this product or any investor.
An investor should consider the Fund's investment objectives, risks, charges and expenses carefully before investing. For this and more complete information about the Fund, call 800.983.0903. Please read the prospectus carefully before investing.
The information in this prospectus is not complete and may be changed. The portfolio may not sell its shares until the registration statement filed with the Securities and Exchange Commission is effective. The prospectus is not an offer to sell the portfolio shares, nor is the portfolio soliciting an offer to buy its shares in any jurisdiction where the offer or sale is not permitted.
PowerShares® and Leading the Intelligent ETF Revolution® are registered marks of PowerShares Capital Management LLC.
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