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PowerShares expands fixed-income range with emerging markets sovereign debt ETF


PowerShares Capital Management has filed a registration statement with the US Securities and Exchange Commission to launch 11 new fixed-income exchange-traded funds, the PowerShares Emergi

PowerShares Capital Management has filed a registration statement with the US Securities and Exchange Commission to launch 11 new fixed-income exchange-traded funds, the PowerShares Emerging Markets Sovereign Debt Portfolio, which is expected to begin trading in October.

‘The Emerging Markets Sovereign Debt Portfolio represents another first for the ETF marketplace,’ says Bruce Bond, president of PowerShares Capital Management. ‘The underlying Deutsche Bank index is enhanced and seeks to both optimise 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 Emerging Markets Sovereign Debt Portfolio is based on the soon-to-be-launched DB Emerging Markets USD Liquid Balanced Index, which will track the performance of a basket of selected liquid emerging market US dollar-denominated government bonds.

Countries eligible for inclusion in the index will be evaluated annually according to a defined set of qualifying criteria established by Deutsche Bank. Membership will be optimised on a quarterly basis based on ratings, size, liquidity and other considerations.

PowerShares says the new ETF range is designed 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 offers more than 90 PowerShares XTF domestic and international ETFs that seek to outperform traditional benchmark indices while providing advisors and investors access with an array of focused investment opportunities.

PowerShares XTF ETFs 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 USD35bn, PowerShares XTF funds trade on all three US 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.

PowerShares is part of Invesco, an independent global investment manager that serves retail, institutional and private wealth management clients under its AIM, AIM Trimark, Atlantic Trust, Perpetual, PowerShares and WL Ross brands and had approximately USD499bn in assets under management at the end of July.

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