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PowerShares Listed Private Equity Portfolio (PSP) Goes Global
CHICAGO, IL--(Marketwire - September 30, 2009) - Invesco PowerShares, a leading provider of
exchange-traded funds (ETFs), announced today that the PowerShares Listed
Private Equity Portfolio (PSP) will begin tracking the Global Listed
Private Equity Index, and be renamed the PowerShares Global Listed Private
Equity Portfolio. The fund will continue to be offered on the NYSE Arca
under the existing ticker symbol PSP. The fund had previously tracked the
Red Rocks Capital Listed Private Equity Index.
"The universe of publicly-listed private equity opportunities outside the
United States is quite significant, and we are pleased to be broadening the
scope of PSP to provide investors with a global exposure to this asset
class," said Ben Fulton, executive vice president global product
development at Invesco PowerShares. "We are delighted to continue our
partnership with Red Rocks Capital LLC, one of the world's leading experts
in private equity."
"The PowerShares Global Listed Private Equity Portfolio (PSP) addresses the
needs of investors building asset allocation models that seek to include
the attributes of private equity, with the added benefit of daily liquidity
provided by the ETF structure," added Fulton.
"Private equity is an essential asset class as both emerging and developed
economies require capital for growth, re-capitalization and innovative
technologies," said Mark Sunderhuse, founder and managing director at Red
Rocks Capital LLC. "The Global Listed Private Equity Index represents
private equity investments on a global scale. The direct holdings
underlying the publicly traded securities within the Index provide exposure
to more than 1,000 privately held businesses diversified by industry,
geography, stage of investment, vintage year and capital structure."
As of Sept. 30, 2009, the PowerShares Listed Private Equity Portfolio will
normally invest at least 90% of its total assets in securities, which may
include ADRs and GDRs that comprise the Global Listed Private Equity Index.
The index is designed to track the performance of a global group of private
equity firms which are publicly traded on nationally recognized exchanges
worldwide. The Index contains between 40 and 60 companies that invest in
and lend capital to privately held businesses, representing a means of
diversified exposure to private equity firms. The securities of the Index
are selected and rebalanced quarterly per modified market capitalization
weights.
Invesco PowerShares Capital Management LLC is leading the intelligent ETF
revolution® through its family of more than 110 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 $34.4 billion as of June 30, 2009, PowerShares ETFs trade on both U.S.
stock exchanges. For more information, please visit us at
www.invescopowershares.com.
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.
Colorado-based Red Rocks Capital LLC constructs and maintains Listed
Private Equity(SM) index products. Red Rocks Capital LLC is a recognized
leader in Listed Private Equity and Liquid Private Equity branded products
with the most extensive proprietary research databases in the industry. Red
Rocks Capital LLC created the first set of indexes in the U.S., the Listed
Private Equity Index and the International Listed Private Equity Index, to
track the industry.
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 value of the stocks in the Global 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 decease
in value more or less in correlation with increases and decreases in the
value of the Index.
The Fund is concentrated in a single sector which involves substantially
greater risk of loss and price fluctuations than an investment diversified
across multiple industries or sector segments.
The Fund's use of a representative sampling approach will result in its
holding a smaller number of securities than are in the Underlying Index. As
a result, an adverse development respecting an issuer of securities held by
the Fund could result in a greater decline in NAV than would be the case if
the Fund held all of the securities in the Underlying Index. To the extent
the assets in the Fund are smaller, these risks will be greater.
The Fund's return may not match the return of the Underlying Index. For
example, the Fund incurs a number of operating expenses not applicable to
the Underlying Index, and incurs costs in buying and selling securities,
especially when rebalancing the Fund's securities holdings to reflect
changes in the composition of the Underlying Index.
Investments made by listed private equity companies are generally subject
to legal and other restrictions on resale and are otherwise less liquid
than publicly-traded securities. The illiquidity of these investments may
make it difficult to sell such investments if the need arises, and if there
is a need for a listed private equity company in which the Fund invests to
liquidate its portfolio quickly, it may realize a loss on its investments.
Listed private equity companies may have investment portfolios consisting
of a relatively small number of holdings.
Market disruptions, including a downturn in capital markets in general, or
a downgrade of the credit rating of a listed private equity company held by
the Fund may increase the cost of borrowing to that company, thereby
increasing its cost of borrowing and adversely impacting the Fund's
returns.
Fair value of the investments of a listed private equity company may differ
significantly from the values that would be reflected if the securities
were traded in an established market, potentially resulting in material
differences between the net asset value per share and the market value of a
listed private equity company.
Many listed private equity companies invest in subordinated and/or
unsecured securities of privately held companies, and may not be rated by a
credit rating agency
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 costs, taxation by foreign
governments, decreased market liquidity, political instability, changes in
currency exchange rates, interest rate fluctuation and monetary policy
changes.
Shares are subject to risks including: Small and Medium-Sized Company Risk
- investing in securities of small and medium-sized companies involves
greater risk than is customarily associated with investing in more
established companies.
Shares are not FDIC insured, may lose value and have no bank guarantee.
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.
An investor should consider the Fund's investment objective, risks, charges
and expenses carefully before investing. For a copy of the prospectus which
contains this and other information about the Fund, 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.