Invesco PowerShares Lists Industry's First ETF Portfolio of Closed-End Funds on the NYSE Arca
CHICAGO, IL--(Marketwire - February 19, 2010) - Invesco PowerShares, a leading provider of
exchange-traded funds (ETFs), announced the PowerShares CEF Income
Composite Portfolio began trading today on the NYSE Arca under the ticker
symbol PCEF. The PowerShares CEF Income Composite Portfolio is the first
ETF designed to provide investors access to a portfolio of closed-end
funds. The fund, which will issue monthly distributions, is expected to go
ex-dividend on March 15, 2010.
"The addition of the PowerShares CEF Income Composite Portfolio (PCEF)
broadens our innovative family of ETFs providing income-based investment
solutions. Over the years, we have introduced the industry's first insured
municipal bond ETFs, first taxable municipal bond ETF, first laddered
treasury ETF and the first ETF to invest solely in sovereign debt of
emerging market countries," said Ben Fulton, Invesco PowerShares managing
director of ETFs. "We believe PCEF provides investors an attractive means
to access a broad basket of yield-orientated closed-end funds through the
benefit-rich ETF structure."
The PowerShares CEF Income Composite Portfolio is based on the S-Network
Composite Closed-End Fund Index(SM). The fund will normally invest at least
80% of its total assets in securities of funds included in the underlying
index. The rules-based index is designed to track the overall performance
of a global universe of U.S.-listed closed-end funds. The index currently
includes 71 closed-end funds, of which 27 invest primarily in taxable
investment-grade fixed-income securities, 15 invest primarily in high-yield
fixed-income securities and 29 primarily use an equity option writing
(selling) strategy. PCEF is a "fund of funds," as it invests its assets in
the common shares of funds included in the underlying index.
Underlying index constituents are selected from a universe of approximately
350 closed-end funds and the index is rebalanced on a quarterly basis. To
qualify for the index, a closed-end fund must have a stated investment
objective of concentration in one of three sectors: taxable
investment-grade fixed income, high-yield fixed income or option income;
trade on a recognized U.S. stock exchange; have a minimum capitalization
value greater than $100 million; have a total expense ratio of less than 2%
per annum; and have an average daily turnover of more than $500,000 per day
for the three months prior to the rebalancing date.
For more information on the PowerShares CEF Income Composite Portfolio,
please visit www.invescopowershares.com/cef.
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 over $43
billion as of Dec. 31, 2009, PowerShares ETFs trade on both U.S. stock
exchanges. For more information, please visit us at
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 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 Fund's price and yield performance, because it is a fund of funds,
depends on the price and yield performance of the Underlying Funds in which
it invests. An investment in the Fund is subject to the risks associated
with the Underlying Funds that comprise the Underlying Index, including,
among others, Investment and Market Risk; Interest Rate Risk; Credit Risk;
Below Investment Grade Securities Risk; Options Risk; Derivatives Risk;
Leverage Risk; Counterparty Risk; Senior Loans Risk; Foreign and Emerging
Market Securities Risk; Liquidity Risk; Concentration Risk; Mortgage- and
Asset-Backed Securities Risk; Small and Medium Capitalization Company Risk;
Recent Developments in Financial Markets; and Anti-Takeover Provisions
Risk. See the prospectus for additional risk information. The Fund will
indirectly pay a proportional share of the fees of the Underlying Funds in
which it invests, 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. At times, certain of the segments of the market represented by
constituent Underlying Funds in the Underlying Index may be out of favor
and underperform other segments.
Invesco PowerShares does not offer tax advice. Please consult a tax advisor
for advice regarding your specific situation.
Invesco Aim Distributors, Inc. is the distributor of the PowerShares
Exchange-Traded Fund Trust, the PowerShares Exchange-Traded Fund Trust II,
the PowerShares India Exchange-Traded Fund Trust and the PowerShares
Actively Managed Exchange-Traded Fund Trust.
PowerShares® is a registered trademark of Invesco PowerShares Capital
Management LLC. Invesco PowerShares Capital Management LLC and Invesco Aim
Distributors, Inc. are indirect, wholly owned subsidiaries of Invesco Ltd.
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 Unit aggregations only, typically consisting of 50,000
An investor should consider the Fund's investment objective, risks, charges
and expenses carefully before investing. For this and more complete
information about the Fund call 800 983 0903 or visit
www.invescopowershares.com for a prospectus. Please read the prospectus
carefully before investing.
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