TORONTO, March 12, 2013 /CNW/ - PowerShares Canada announced today that it will adjust the net asset value ("NAV") of two TSX-listed PowerShares exchange-traded funds (the "ETFs"), effective Wednesday, March 13, 2013.
PowerShares Fundamental High Yield Corporate Bond (CAD Hedged) Index ETF [TSX: PFH] and PowerShares Senior Loan (CAD Hedged) Index ETF [TSX: BKL] invest in one or more U.S. Regulated Investment Companies ("RICs") that earn and distribute qualified interest-related dividends.
The NAV adjustments are a result of the American Taxpayer Relief Act of 2012 (the "Act"), which was signed into law on January 2, 2013. The Act retroactively extended the U.S. withholding tax exemption for qualifying income distributed by the relevant RICs to foreign entities, including the ETFs.
The ETFs had previously benefited from an exemption from U.S. withholding tax on qualifying income received from investments in RICs. The law granting that exemption expired in 2012, subjecting the ETFs to withholding tax at a rate of 15% for part of the year.
Recognizing the value this exemption provides to investors, PowerShares Canada has reclaimed that portion of the taxes withheld in 2012.
The ETFs will record a tax reclaim amount on March 13, 2013, which will result in an increase in the NAV and NAV per unit of the ETFs.
The NAV adjustments are as follows:
| Fund Name | Fund Ticker | NAVPS impact ($ per share) |
| PowerShares Fundamental High Yield Corporate Bond (CAD Hedged) Index ETF |
PFH | 0.08431 |
| PowerShares Senior Loan (CAD Hedged) Index ETF |
BKL | 0.01654 |
To learn more about TSX-listed PowerShares ETFs, please visit www.powershares.ca.
About Invesco Canada Ltd.
Invesco Canada Ltd., operating under three distinct yet complementary product brands (Trimark, Invesco and PowerShares), is one of Canada's leading investment management companies. A subsidiary of Invesco Ltd., Invesco Canada's singular focus is on investment management, offering a diversified suite of solutions to institutions, organizations, companies and individual investors across Canada and around the world. Additional information is available at www.invesco.ca.
About Invesco Ltd.
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 retail, institutional and high-net-worth 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.
"Fundamental Index®" and/or "Research Affiliates Fundamental Index®" and/or "RAFI" and/or all other RA trademarks, trade names, patented and patent-pending concepts are the exclusive property of Research Affiliates, LLC.
Commissions, management fees and expenses may all be associated with investments in exchange-traded funds (ETFs). ETFs are not guaranteed, their values change frequently and past performance may not be repeated. Please read the prospectus before investing. Copies are available from Invesco Canada Ltd. at www.powershares.ca.
There are risks involved with investing in ETFs. Please read the prospectus for a complete description of risks relevant to the ETF. Ordinary brokerage commissions apply to purchases and sales of ETF units.
Most PowerShares ETFs seek to replicate, before fees and expenses, the performance of the applicable Index, and are not actively managed. This means that the sub-advisor will not attempt to take defensive positions in declining markets and the ETF will continue to provide exposure to each of the securities in the Index regardless of whether the financial condition of one or more issuers of securities in the Index deteriorates. In contrast, if a PowerShares ETF is actively managed, then the sub-advisor has discretion to adjust that PowerShares ETF's holdings in accordance with the ETF's investment objectives and strategies.
ETFs are not diversified investments.
PowerShares Canada is registered business name of Invesco Canada Ltd.
This piece was produced by Invesco Canada Ltd.
Invesco® and all associated trademarks are trademarks of Invesco Holding Company Limited, used under licence. PowerShares®, Leading the Intelligent ETF Revolution® and all associated trademarks are trademarks of Invesco PowerShares Capital Management, LLC (Invesco PowerShares), used under licence.
© Invesco Canada Ltd., 2013
SOURCE: Invesco Canada Ltd.
Aysha Mawani
Vice President, Corporate Affairs
Tel: 416.324.7712
[email protected]
Share this article