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PowerShares Expanding Fixed-Income Initiatives With Industry's First Emerging Markets Sovereign Debt ETF
| Source: PowerShares Capital Management
CHICAGO, IL--(Marketwire - August 22, 2007) - 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.
Risk Information
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.