Invesco PowerShares Capital Management plans to change the underlying indexes and names of ten ETFs and close a further four ETFs, which together represent less than one per cent of Invesco PowerShares’ total assets.
“We regularly evaluate our ETF product offerings using numerous factors including investment results, how investors may utilise them in portfolios and length of time in the market, among others,” says Dan Draper, Invesco PowerShares managing director of global ETFs. “For more than a decade, our focus has been to ensure that we provide innovative ETFs that can help investors meet their financial goals amidst a changing investment landscape. We believe these changes will provide investors a unique set of investment opportunities and position our family of ETFs for continued growth.”
On 17 December, the board of trustees approved name, investment objective, underlying index, and investment policy and strategy changes for the following ETFs. These changes are scheduled to take effect on 19 February 2014.
The ten names changes are as follows:
PowerShares Dynamic OTC Portfolio – PowerShares DWA Nasdaq Momentum Portfolio
PowerShares Dynamic Basic Materials Sector Portfolio – PowerShares DWA Basic Materials Momentum Portfolio
PowerShares Dynamic Consumer Discretionary Sector Portfolio – PowerShares DWA Consumer Cyclicals Momentum Portfolio
PowerShares Dynamic Consumer Staples Sector Portfolio – PowerShares DWA Consumer Staples Momentum Portfolio
PowerShares Dynamic Energy Sector Portfolio – PowerShares DWA Energy Momentum Portfolio
PowerShares Dynamic Financial Sector Portfolio – PowerShares DWA Financial Momentum Portfolio
PowerShares Dynamic Healthcare Sector Portfolio – PowerShares DWA Healthcare Momentum Portfolio
PowerShares Dynamic Industrials Sector Portfolio – PowerShares DWA Industrials Momentum Portfolio
PowerShares Dynamic Technology Sector Portfolio – PowerShares DWA Technology Momentum Portfolio
PowerShares Dynamic Utilities Portfolio – PowerShares DWA Utilities Momentum Portfolio
“As with our existing PowerShares DWA Momentum ETF line-up, these portfolios will be based on momentum strategies as measured by Dorsey Wright’s definition of relative strength characteristics, which can be a powerful tool for stock selection,” says Lorraine Wang, Invesco PowerShares global head of ETF products and research. “The momentum indexes were developed by Dorsey Wright who we believe remains a leader in relative strength investing.”
The board of trustees has also approved the following ETF closures. The final day of trading for the ETFs on The Nasdaq Stock Market and NYSE Arca will be 18 February 2014:
PowerShares KBW International Financial Portfolio
PowerShares MENA Frontier Countries Portfolio
PowerShares Dynamic MagniQuant Portfolio
PowerShares Lux Nanotech Portfolio
Shareholders may sell their holdings on or before 18 February 2014 and may incur typical transaction fees from their broker-dealer. Shareholders who do not sell their holdings on or before February 18 will receive cash equal to the amount of the net asset value of their shares, which will include any capital gains and dividends in the cash portion of their brokerage accounts. The shareholder payment date is currently scheduled for on or about February 25. Shareholders will generally recognise a capital gain or loss equal to the amount received for their shares over their adjusted basis in such shares.