Invesco PowerShares Announces Changes to ETF Family
May 01 2009 - 2:23PM
Marketwired
Invesco PowerShares Capital Management LLC is a leading global
provider of exchange-traded funds (ETFs). The PowerShares product
line includes 135 unique portfolios with assets of $25.8 billion as
of March 31, 2009. The family of ETFs is one of the broadest in the
marketplace today and spans numerous market segments, sizes,
styles, themes and security types, both domestic and international.
In an effort to position its business for future growth
opportunities and to align its family of ETFs with the changing
investment landscape, Invesco PowerShares announced today that it
plans to close 19 of its ETFs. The affected funds represent less
than 1% of Invesco PowerShares' total assets.
"After carefully evaluating numerous factors including
shareholder considerations, length of time on the market, asset
levels and the potential for future growth, we proposed closing
certain portfolios that have not gained sufficient acceptance with
investors," said Bruce Bond, president and CEO of Invesco
PowerShares. "We remain fully committed to the ETF industry and
expect to offer new, exciting products in the months ahead."
At a May 1, 2009 meeting, the PowerShares Funds Board of
Trustees approved the closings. May 18, 2009 will be the final day
of trading on The NASDAQ Stock Market LLC ("NASDAQ") and NYSE Arca,
Inc. ("NYSE Arca") for the affected ETFs (collectively, the
"Funds") listed below:
Ticker
Name Symbol
PowerShares Dynamic Aggressive Growth Portfolio PGZ
PowerShares Dynamic Asia Pacific Portfolio PUA
PowerShares Dynamic Deep Value Portfolio PVM
PowerShares Dynamic Europe Portfolio PEH
PowerShares Dynamic Hardware & Consumer Electronics Portfolio PHW
PowerShares FTSE RAFI Asia Pacific ex-Japan Small-Mid Portfolio PDQ
PowerShares FTSE RAFI Basic Materials Sector Portfolio PRFM
PowerShares FTSE RAFI Consumer Goods Sector Portfolio PRFG
PowerShares FTSE RAFI Consumer Services Sector Portfolio PRFS
PowerShares FTSE RAFI Energy Sector Portfolio PRFE
PowerShares FTSE RAFI Europe Small-Mid Portfolio PWD
PowerShares FTSE RAFI Financials Sector Portfolio PRFF
PowerShares FTSE RAFI Health Care Sector Portfolio PRFH
PowerShares FTSE RAFI Industrials Sector Portfolio PRFN
PowerShares FTSE RAFI International Real Estate Portfolio PRY
PowerShares FTSE RAFI Telecommunications & Technology Sector
Portfolio PRFQ
PowerShares FTSE RAFI Utilities Sector Portfolio PRFU
PowerShares High Growth Rate Dividend Achievers Portfolio PHJ
PowerShares International Listed Private Equity Portfolio PFP
In early May 2009, the Funds will begin the process of closing
down and liquidating their respective portfolios. This process will
cause each Fund's holdings to deviate from the securities included
in its underlying index and each Fund to increase its cash
holdings, which may lead to increased tracking error. Effective May
19, 2009, the Funds will be closed to new investors.
Shareholders may sell their holdings prior to May 19, 2009, and
may incur typical transaction fees from their broker-dealer.
Shareholders of record on the close of business on May 18, 2009
will receive cash equal to the amount of the net asset value of
their shares as of May 22, 2009, which will include any capital
gains and dividends, in the cash portion of their brokerage
accounts. Shareholders will generally recognize a capital gain or
loss equal to the amount received for their shares over their
adjusted basis in such shares.
For additional information, shareholders of the ETFs which are
scheduled for liquidation may call Invesco PowerShares at
800-983-0903.
Invesco PowerShares is a wholly owned subsidiary of Invesco
Ltd., a leading independent global investment management firm
dedicated to helping people worldwide build their financial
security. Invesco provides a comprehensive array of enduring
investment solutions for retail, institutional and high-net-worth
clients around the world. Operating in 20 countries, the firm is
listed on the New York Stock Exchange under the symbol "IVZ."
Additional information is available at www.invesco.com.
There are risks involved with investing in ETFs, including
possible loss of money. Shares of the affected Funds are not
actively managed. Ordinary brokerage commissions apply.
Invesco PowerShares does not offer tax advice. Please consult a
tax advisor for advice regarding your specific situation.
Shares are not FDIC insured, may lose value and have no bank
guarantee.
� 2009 Invesco PowerShares Capital Management LLC
PowerShares� is a registered trademark of Invesco PowerShares
Capital Management LLC (Invesco PowerShares). Invesco PowerShares
Capital Management LLC and Invesco Aim Distributors, Inc. are
indirect, wholly owned subsidiaries of Invesco Ltd.
Invesco Aim Distributors, Inc. is the distributor of the
PowerShares Exchange-Traded Fund Trust and the PowerShares
Exchange-Traded Fund Trust II.
An investor should consider the Funds' investment objectives,
risks, charges and expenses carefully before investing. For a copy
of the prospectus which contains this and other information about
the Funds, call 800.983.0903 or visit www.invescopowershares.com.
Please read the prospectus carefully before investing.
Shares are not individually redeemable and owners of the Shares
may acquire those shares from the Funds and tender those shares for
redemption to the Funds in Creation Unit aggregations only,
typically consisting of 50,000 shares.
Media Contacts: Kristin Sadlon Porter Novelli 212-601-8192 Email
Contact Bill Conboy 303-415-2290 Email Contact