Exchange-traded fund provider Invesco PowerShares Capital Management has announced plans to list three ETF portfolios designed to provide investors with access to long-term, core asset all
Exchange-traded fund provider Invesco PowerShares Capital Management has announced plans to list three ETF portfolios designed to provide investors with access to long-term, core asset allocation strategies through investment in other ETFs.
The balanced, balanced growth and growth portfolios, based on three defined risk profiles targeting fixed proportions of investment in equity and fixed-income securities, are expected to begin trading on NYSE Amex on May 15.
The PowerShares NFA Autonomic Global Asset Portfolios are the first of a new family of ETF portfolios that aim to offer risk-controlled asset allocation strategies through investment in other ETFs.
‘We are thrilled to provide investors efficient access to world-class asset allocation strategies using the benefit-rich ETF format,’ says PowerShares president and chief executive Bruce Bond. ‘The Autonomic NFA Global Asset Portfolios seek to deliver the benefits of risk-targeted asset allocation combined with the anticipated tax efficiency of ETFs.’
The New Frontier Global Dynamic Indexes underlying the PowerShares Autonomic NFA Global Asset Portfolios are constructed using an optimisation process from New Frontier Advisors known as resampled efficiency.
‘With resampled efficiency, the PowerShares Autonomic ETFs bring state-of-the-art institutional quality asset management tools that are designed to maximise core investment management and long-term objectives to advisors and investors, including demonstrably improved portfolio optimisation and rebalancing,’ says Richard Michaud, president and chief investment officer of New Frontier Advisors. ‘We are pleased to join with Invesco PowerShares to bring these innovative products to market.’
The PowerShares Autonomic Balanced NFA Global Asset Portfolio is based on the New Frontier Global Dynamic Balanced Index and consists of around 60 per cent equities and 40 per cent taxable fixed-income. The PowerShares Autonomic Balanced Growth NFA Global Asset Portfolio contains around 75 per cent equities and 25 per cent fixed-income, while the PowerShares Autonomic Growth NFA Global Asset Portfolio contains around 90 per cent equities and 10 per cent fixed-income.
The indices underlying the portfolios will generally include ETFs managed by PowerShares, or funds from third-party providers if the asset exposure sought is not available through a PowerShares ETF. PowerShares has more than 100 US, international and actively managed ETFs with assets under management of USD12.75bn.
New Frontier Advisors is a Boston-based institutional research and investment advisory firm with an extensive background in quantitative research, consulting and management, specialising in asset allocation and portfolio selection.