TORONTO, Feb. 19, 2015 /CNW/ - PowerShares Canada announced today that it will increase the net asset value (NAV) of three TSX-listed PowerShares exchange-traded funds (the "ETFs") calculated after close of business on February 20, 2015.
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 increases are a result of the American Taxpayer Relief Act of 2012, which exempts qualifying income distributed by the relevant RICs to foreign entities, including the ETFs, from U.S. withholding taxes.
Recognizing the value this exemption provides investors, PowerShares Canada has reclaimed that portion of the taxes withheld in 2014.
The NAV and NAV per unit of each of the ETFs, calculated after the close of business on February 20, 2015, will increase to reflect their respective tax reclaim amounts.
The impact to NAV will be as follows:
| Fund name |
Fund |
NAVPS impact |
| PowerShares Fundamental High Yield Corporate Bond (CAD Hedged) Index ETF |
PFH |
0.18712 |
| PowerShares Senior Loan (CAD Hedged) Index ETF |
BKL |
0.17607 |
PowerShares Tactical Bond ETF [TSX: PTB] is invested in PowerShares Fundamental High Yield Corporate Bond (CAD Hedged) Index ETF [TSX: PFH], and as a result, will also experience an increase in its NAV.
The NAV impact will be as follows:
| Fund name |
Fund |
NAVPS impact |
| PowerShares Tactical Bond ETF |
PTB |
0.00980 |
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 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.
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.
Investors should be aware of the risks associated with data sources and quantitative processes used in our investment management process. Errors may exist in data acquired from third-party vendors, the construction of model portfolios, and in coding related to the index and portfolio construction process. While Research Affiliates takes steps to identify data and process errors so as to minimize the potential impact of such errors on index and portfolio performance, we cannot guarantee that such errors will not occur.
"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.
S&P® is a registered trademark of Standard & Poor's Financial Services LLC and has been licensed for use by S&P Dow Jones Indices LLC and sublicensed for certain purposes by Invesco Canada Ltd. LSTA® is a registered trademark of Loan Syndications and Trading Association and has been licensed for use by S&P Dow Jones Indices LLC and Invesco Canada Ltd. The S&P/LSTA U.S. Leverage Loan 100 Index (CAD Hedged) is a product of S&P Dow Jones Indices LLC, and has been licensed for use by Invesco Canada Ltd. Invesco Canada Ltd.'s PowerShares Senior Loan (CAD Hedged) Index ETF is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC or its affiliates or LSTA and none of S&P Dow Jones Indices LLC or its affiliates or LSTA make any representation regarding the advisability of investing in such product.
PowerShares Canada is a registered business name of 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., 2015
SOURCE Invesco Canada Ltd.
Aysha Mawani, Vice President, Corporate Affairs, Tel: 416.324.7712, [email protected]
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