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Monday, September 10, 2007|
More ETFs Slide Onto PowerShares' Line-up
PowerShares is at it again, adding another five ETFs to its lineup. The funds will be rolled out on the Amex on September 27.
PowerShares Capital Management LLC, a leading provider of exchange-traded funds (ETFs), today announced a significant global expansion with the company's anticipated listing of five new international portfolios on Sept. 27, 2007, on the American Stock Exchange.
The ETF names and anticipated ticker symbols are:
-- PowerShares FTSE RAFI® Asia Pacific ex-Japan Small-Mid Portfolio -- PDQ
-- PowerShares FTSE RAFI® Development Markets ex-U.S. Small-Mid Portfolio -- PDN
-- PowerShares FTSE RAFI® Emerging Markets Portfolio -- PXH
-- PowerShares FTSE RAFI® Europe Small-Mid Portfolio -- PWD
-- PowerShares International Listed Private Equity -- PFP
"I am thrilled to announce this great milestone in our global expansion," said Bruce Bond, president of PowerShares Capital Management. "PowerShares continues to add value and intelligence to exchange-traded funds by providing investors with cutting-edge ways to access new and exciting corners of financial markets around the world."
"Our International Listed Private Equity portfolio will give U.S.-based investors unique access to a diversified group of companies whose primary business is private equity investments -- an important and increasingly sought-after asset class," continued Mr. Bond. "Our four additional FTSE RAFI® portfolios will provide fundamental weighted exposure to global markets. PowerShares is committed to providing investors with the broadest and most diversified family of intelligent ETFs available today."
PowerShares' Global series of FTSE™ RAFI® Portfolios are based on FTSE™ RAFI® global indexes, uniquely constructed using four fundamental measures of a firm's size: book value, cash flow, sales and dividends. The equities with the highest fundamental strength are then weighted according to their fundamental scores. PowerShares' Fundamentals Weighted™ portfolio is rebalanced and reconstituted annually.
Rob Arnott, Chairman of Research Affiliates®, LLC commented on the FTSE™ RAFI® fundamental index strategy: "Our research has found that indexes weighted by company fundamentals, on average, have outperformed the well-known cap-weighted indexes in the US by an average 200 basis points per year. In international applications, this benefit surpasses 300 basis points, on average."
Product information on the five new funds PowerShares intends to list in September follows:
-- The PowerShares FTSE™ RAFI® Asia Pacific Ex-Japan Small-Mid Portfolio is based on the FTSE™ RAFI® Developed Asia Pacific ex-Japan Mid Small Index. The Index is designed to track the performance of small- and mid-cap equities of companies domiciled in the Asia Pacific region, excluding Japan.
-- The PowerShares FTSE™ RAFI® Developed Markets ex-U.S. Small-Mid Portfolio is based on the FTSE™ RAFI® Developed Markets ex-U.S. Mid- Small 1500 Index. The Index is designed to track the performance of small- and mid-cap equities of companies domiciled in developed international markets, excluding the U.S.
-- The PowerShares FTSE™ RAFI® Emerging Markets Portfolio is based on the FTSE™ RAFI® Emerging Index. The Index is designed to track the performance of the largest Emerging Market equities.
-- The PowerShares FTSE™ RAFI® Europe Small-Mid Portfolio is based on the FTSE™ RAFI® Developed Europe Mid Small Index. The Index is designed to track the performance of small-cap European equities.
-- The PowerShares International Listed Private Equity Portfolio seeks to replicate the Red Rocks International Listed Private Equity Index, which includes a diversified mix of more than 30 internationally listed companies with direct investments in more than 1,000 private global businesses. Constituents for the Index are selected based upon reputation, valuation, management, financial data, historical performance and the need for diversification within the Index, which is rebalanced quarterly.
The launch of these five funds in September will also mark the listing of PowerShares' 100th portfolio.
PowerShares Capital Management LLC is leading the intelligent ETF revolution® through its family of more than 90 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. With franchise assets of nearly $35 billion, PowerShares ETFs 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, Invesco 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.
There are risks involved with investing in ETFs including the possible loss of money. Shares are not actively managed and are subject to risks similar to stocks, including those related to short selling and margin maintenance. Shares are not FDIC insured, may lose value and have no bank guarantee. Ordinary brokerage commissions apply.
The Funds may invest in small and/or medium-sized companies. Investing in securities of small and medium-sized companies involves greater risk than is customarily associated with investing in more established, larger-sized companies. An investment in the securities of non-U.S. issuers involves risks beyond those associated with investments in U.S. securities, including, but not limited to: greater market volatility, the availability of less reliable financial information, higher transactional and custody costs, taxation by foreign governments, decreased market liquidity, political instability, negative impact of changes in currency exchange rates or foreign governmental regulation.
The Indexes are compiled and calculated by FTSE in conjunction with RA. However, neither FTSE nor Exchange nor FT nor RA shall be liable (whether in negligence or otherwise) to any person for any error in the Indexes and neither FTSE nor the Exchange nor FT nor RA shall be under any obligation to advise any person of any error therein. "FTSE" is a trademark of the London Stock Exchange Plc and The Financial Times Limited and is used by FTSE International Limited under licence. "Research Affiliates," "Fundamental Index," "RAFI" and "Fundamentals Weighted" are trademarks of Research Affiliates.
The PowerShares International Listed Private Equity Fund invests in securities of non-U.S. issuers. This involves risks beyond those associated with investments in U.S. securities, including, but not limited to: greater market volatility, the availability of less reliable financial information, higher transactional and custody costs, taxation by foreign governments, decreased market liquidity, political instability, negative impact of changes in currency exchange rates or foreign governmental regulation.
The value of the stocks in the Red Rocks Listed Private Equity Index and the Red Rocks International Listed Private Equity Index is likely to be more volatile than stocks of other issues. An investor in the fund should anticipate that the value of their shares will increase or decrease in value more or less in correlation with increases or decreases in value of the Indexes.
PowerShares is a trademark of PowerShares Capital Management LLC. The products are not sponsored, endorsed, sold or promoted by Red Rocks Capital, and Red Rocks makes no representation regarding the advisability of investing in these funds.
A I M Distributors, Inc. is the distributor of the PowerShares Global Exchange-Traded Fund Trust.
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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