PowerShares Senior Loan Portfolio Recognized with William F. Sharpe
Award for ETF Product of the Year
PowerShares S&P 500(R) Downside Hedged Portfolio Awarded ETF
Innovation of the Year
CHICAGO, IL--(Marketwired - Dec 19, 2013) - Invesco PowerShares
Capital Management LLC, a leading global provider of
exchange-traded funds (ETFs), announced today the PowerShares
Senior Loan Portfolio (BKLN) received the William F. Sharpe Award
for ETF Product of the Year. Listed on March 3, 2011, BKLN
represents the first and largest floating-rate senior loan ETF
available to US investors having recently surpassed $6.2 billion in
assets under management.
In addition, the PowerShares S&P 500® Downside Hedged
Portfolio (PHDG) was awarded ETF Innovation of the Year and
recently surpassed $100 million in assets under management. The
Fund's underlying index, the S&P 500® Dynamic VEQTOR Index, was
also recognized with the award for Index Innovation of the
Year.
"We take pride in being an ETF innovator and are truly honored
to be recognized by our industry peers with the 2013 William F.
Sharpe Award for ETF Product of the Year," said Dan Draper, Invesco
PowerShares Managing Director of global ETFs. "These awards are a
reflection of PowerShares strength in providing investors
intelligent exposure to the liquid alternative space."
"PowerShares Senior Loan Portfolio (BKLN) was a groundbreaking
listing for investors seeking to reduce duration in their bond
holdings and has become a flagship ETF in this space," added
Gregory Stoeckle, President and Managing Director of the
Fund's Sub-Adviser, Invesco Senior Secured Management, Inc.
BKLN was recognized as ETF Product of the Year for having the
most significant impact on the ETF market over the previous 12
months. This is the third consecutive year a PowerShares ETF has
received this prestigious award, following the PowerShares S&P
500® Low Volatility Portfolio (SPLV) as the 2012 recipient and the
PowerShares Fundamental High Yield® Corporate Bond Portfolio (PHB)
in 2011.
The William F. Sharpe Awards recognize the best and the
brightest innovators in the field of indexing, ETFs, and investment
management. This year's awards were presented at the 2013 Global
Indexing & ETFs Conference held in Scottsdale, AZ from December
8-10, 2013.
The PowerShares Senior Loan Portfolio (BKLN) is based on the
S&P/LSTA U.S. Leveraged Loan 100 Index (Index). The Fund will
normally invest at least 80% of its total assets in the component
securities that comprise the Index. The Index is designed to track
the market-weighted performance of the largest institutional
leveraged loans based on market weightings, spreads and interest
payments. The Fund and the Index are rebalanced and reconstituted
bi-annually, in June and December.
The PowerShares S&P 500® Downside Hedged Portfolio (PHDG) is
an actively managed exchange-traded fund (ETF) that seeks to
achieve positive total returns in rising or falling markets that
are not directly correlated to broad equity or fixed-income market
returns. The Fund seeks to achieve its investment objective by
using a quantitative, rules-based strategy designed to provide
returns that correspond to the performance of the S&P 500®
Dynamic VEQTOR Index (the Index). The Index provides investors with
broad equity market exposure with an implied volatility hedge by
dynamically allocating between equity, volatility and cash. The
index allows investors to receive exposure to the equity and
volatility of the S&P 500 Index in a dynamic framework.
About the William F. Sharpe Awards The William F. Sharpe Awards
honor new products or innovations. Nominees were selected from a
pool of submissions solicited from the industry at large, and the
final nominations and subsequent winners for each category were
chosen by the Associate Editors of the Journal of Index Investing.
Entries were judged on the following criteria:
1. How cutting edge is the product/innovation? 2. Has
the product/innovation pioneered a new market or restructured an
existing one? 3. What evidence is there that the
product/innovation has staying power, and is or will be a financial
success? 4. How will the product innovation enhance the
investment community?
Category descriptions of the awards won by Invesco PowerShares
are as follows: ETF Product of the Year Awarded to the company
responsible for the most significant index product in the previous
twelve months; ETF Innovation of the Year Awarded to the company
responsible for the most significant new product, service or
strategy in ETF investing.
About Invesco PowerShares Capital Management LLC and Invesco,
Ltd. Invesco PowerShares Capital Management LLC is leading the
Intelligent ETF Revolution® through its family of more than 140
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 over $97 billion as of
November 30, 2013, PowerShares ETFs trade on both US stock
exchanges. For more information, please visit us at
invescopowershares.com or follow us on Twitter @PowerShares.
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.
Important Risk Information There are risks involved with
investing in ETFs, including possible loss of money. Shares are not
actively managed and are subject to risks similar to those of
stocks, including those regarding short selling and margin
maintenance requirements. Ordinary brokerage commissions apply. The
Funds' return may not match the return of the Underlying Index.
The Funds are considered non-diversified and can invest a
greater portion of their assets in securities of individual issuers
than a diversified fund.
Investments focused in a particular industry are subject to
greater risk, and are more greatly impacted by market volatility,
than more diversified investments.
Note: Not all products are available through all firms.
Not FDIC Insured | May Lose Value | No Bank Guarantee
BKLN Risk Information Investments in loans are subject to
interest rate risk and credit risk. Interest rate risk refers to
fluctuations in the value of a loan resulting from changes in the
general level of interest rates. Credit risk refers to the
possibility that the borrower of a loan will be unable and/or
unwilling to make timely interest payments and/or repay the
principal on its obligation. There is no organized exchange on
which loans are traded and reliable market quotations may not be
readily available.
As the purchaser of a loan assignment, the Fund typically
succeeds to all assigning institution rights and obligations and
becomes a lender under the credit agreement with respect to the
debt obligation.
However, the Fund may not be able to enforce all rights and
remedies under the loan including any associated collateral. If the
loan is foreclosed, the Fund may become part owner of any
collateral and may bear the costs and liabilities of owning and
disposing of the collateral. The Fund may be required to pass on to
a purchaser that buys a loan from the Fund a portion of fees it is
entitled to under the loan. In connection with purchasing loan
participations, the Fund will have no right to enforce borrower
compliance with the terms of the loan agreement, nor any rights of
set-off against the borrower, and the Fund may not benefit from any
collateral supporting the loan. Consequently, the Fund will be
subject to the credit risk of both the borrower and the lender that
is selling the participation. In the event of the insolvency of the
lender selling participation, the Fund may be treated as the
lender's general creditor and may not benefit from any set-off
between the lender and the borrower.
The Fund may invest in non-investment grade, or high-yield,
securities (junk bonds). High-yield securities have additional
risks, including interest rate changes, decreased market liquidity
and a larger amount of outstanding debt than investment grade
securities.
Proceeds from a current investment of the Fund, both interest
payments and principal payments, may be reinvested in instruments
that offer lower yields than the current investment due in part to
market conditions and the interest rate environment at the time of
reinvestment.
The market value of the shares of closed-end investment
companies may differ from their NAV. In addition, the shares of
closed-end investment companies frequently trade at a discount to
their NAV. As an investor in closed-end investment companies, the
Fund would bear its ratable share of those closed-end investment
companies' fees and expenses, including its investment advisory and
administration fees, while continuing to pay its own advisory and
administration fees and other expenses. As a result, shareholders
will be absorbing duplicate levels of fees with respect to
investments in closed-end investment companies.
The Fund may invest all or a portion of its assets in loans of
non-U.S. borrowers. Loans of non-U.S. borrowers have additional
risks, including decreased market liquidity, political instability
and taxation by foreign governments.
The Fund's use of a representative sampling approach will result
in its holding a smaller number of loans than are in the Underlying
Index, and may subject the Fund to greater volatility.
The Fund currently intends to effect creations and redemptions
principally for cash, rather than principally in-kind because of
the nature of the Fund's investments. As such, investments in the
Fund may be less tax efficient than investments in ETFs that create
and redeem in-kind.
Liquidity risk may occur since the Fund's assets may be invested
in loans that are less liquid than securities traded on national
exchanges. Since the Fund may engage in frequent trading of
securities in connection with rebalancing or adjusting its'
underlying index, high brokerage costs and higher taxable capital
gains distributions to shareholders may occur due to portfolio
turnover risk.
The Fund invests in fixed-income securities, such as notes and
bonds, which carry interest rate and credit risk. Interest rate
risk refers to the risk that bond prices generally fall as interest
rates rise and vice versa. Credit risk is the risk of loss on an
investment due to the deterioration of an issuer's financial
health.
The S&P/LSTA Leveraged Loan Index is an unmanaged index that
tracks the current outstanding balance and spread over LIBOR for
fully funded term loans. The Barclays U.S. Aggregate Index is an
unmanaged index considered representative of the U.S.
investment-grade, fixed-rate bond market.
PHDG Risk Information The Chicago Board Options Exchange (CBOE)
can make methodological changes to the calculation of the VIX Index
that could affect the value of the futures contracts on the VIX
Index and may affect the value of your investment.
The contracts included in the VIX Index historically have traded
in "contango" markets, resulting in a roll cost, which could
adversely affect the value of the Shares. At any given time, the
percentage increase in the amount of VIX Index Related Instruments
in which the Fund invests may be less than the percentage increase
in the VIX Index.
The Fund may engage in investment transactions, or enter into
futures contracts. Because futures contracts project price levels
in the future, market circumstances may cause a discrepancy between
the price of a stock index future and the movement in the
underlying index. In the event of adverse price movements, the Fund
would be required to make daily cash payments to maintain its
required margin.
The Fund's use of derivatives may increase the amount of risk
associated with the Fund and may magnify changes in the Fund's
value positively and negatively. The use of this fund may not be
suitable for all investors.
ETNs are short-term investments and if leveraged may have
amplified losses or gains. ETNs do not provide principal protection
and may or may not make periodic coupon payments. ETNs are subject
to credit risk and the value of the ETN may drop due to a downgrade
in the issuer's credit rating, despite the underlying market
benchmark or strategy remaining unchanged.
The Fund will gain most of its exposure to the futures markets
by entering into VIX Index futures. The Fund intends to restrict
its income from VIX Index futures that do not generate qualifying
income, to a maximum of 10% of its gross income. However, there is
no guarantee the Fund will be successful in doing so, and failure
to comply with this restriction would have significant negative
consequences to Fund shareholders.
The Fund currently intends to effect creations and redemptions
principally for cash, rather than principally in-kind because of
the nature of the Fund's investments. As such, investments in the
Fund may be less tax efficient than investments in ETFs that create
and redeem in-kind.
The Fund is designed to achieve positive total returns in rising
or falling markets. Significant short-term price movements could
adversely affect the performance of the Fund and cause substantial
losses.
The S&P 500® Index is an unmanaged index considered
representative of the U.S. stock market. The T-Bill 3 Month Index
(U.S. Treasury Bills Index) is tracked by Lipper to provide
performance for the 3-month U.S. Treasury Bill. The HFRX Global
Hedge Fund Index is an investable hedge fund index designed to
provide returns that reflect the performance of the global hedge
fund universe. The VIX Index is a theoretical calculation and
cannot be traded. The VIX Index measures the 30-day forward
volatility of the S&P 500 Index as calculated based on the
prices of certain put and call options on the S&P 500
Index.
Shares are not individually redeemable and owners of the shares
may acquire those shares from the Fund and tender those shares for
redemption to the Fund in Creation Units only, typically consisting
of aggregations of 50,000, 75,000, 100,000 or 200,000 shares.
Invesco Distributors, Inc. is the distributor of the PowerShares
Exchange-Traded Fund Trust II.
PowerShares® is a registered trademark of Invesco PowerShares
Capital Management LLC (Invesco PowerShares). Invesco PowerShares
Capital Management LLC and Invesco Distributors, Inc. are indirect,
wholly owned subsidiaries of Invesco Ltd.
An investor should consider the Funds' investment
objectives, risks, charges and expenses carefully before investing.
For this and more complete information about the Funds call 800 983
0903 or visit invescopowershares.com for a prospectus. Please read
the prospectus carefully before investing.
Media Contacts: Kristin Sadlon Porter Novelli 212-601-8192 Email
Contact Bill Conboy 303-415-2290 Email Contact
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