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PowerShares receives regulatory relief for SEC limits on all ETFs

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PowerShares Capital Management has received regulatory relief for all of its ETFs permitting other investment companies to invest in PowerShares’ ETFs in excess of the limits prescribed by

PowerShares Capital Management has received regulatory relief for all of its ETFs permitting other investment companies to invest in PowerShares’ ETFs in excess of the limits prescribed by Section 12d-1 of the Investment Company Act of 1940. The relief granted to PowerShares also applies to all future ETF products launched by the company.

Under Section 12d-1 of the Investment Company Act of 1940, investment companies are prohibited from acquiring more than 3 percent of the total outstanding voting stock of another investment company, investing more than 5 percent of their total assets in a single investment company, or investing more than 10 percent of their total assets in two or more investment companies.

"We are very pleased with the increased flexibility and investment opportunities that this order creates for the PowerShares family of ETFs," says Bruce Bond, President of PowerShares Capital Management. "The regulatory relief order is another step in our continued integration with INVESCO PLC, and allows PowerShares’ ETFs to utilize INVESCO’s global distribution capabilities — including AIM Investments in the US — offering investors the best of both worlds."

As part of the relief, investment companies must agree to certain terms and conditions before investing in the PowerShares ETFs above the statutory limits, including but not limited to the following: entering into a participation agreement, not exercising undue influence over the PowerShares ETFs, and complying with the investment company’s own investment restrictions and investment policies. A participation agreement can be obtained by emailing 12d-1request@powershares.com.

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