Exchange-traded funds provider Invesco PowerShares Capital Management has changed the name, underlying index and investment objectives of its three PowerShares Municipal Bond ETFs.
Effective 8 July 2014, the PowerShares Insured National Municipal Bond Portfolio (PZA) will track the BofA ML National Long-Term Core Plus Municipal Securities Index (UNAP).
The PowerShares Insured New York Municipal Bond Portfolio (PZT) will track the BofA ML New York Long-Term Core Plus Municipal Securities Index (UNYP).
The PowerShares Insured California Municipal Bond Portfolio (PWZ) will track the BofA ML California Long-Term Core Plus Municipal Securities Index (UCAP).
Since 2007, when the PowerShares Insured Municipal Bond Portfolios first listed, the US market for insured municipal bond securities has shrunk by over 40 per cent, making the available supply of insured-municipal securities more limited.
The new indices underlying the PowerShares’ Municipal Bond ETFs include both insured and uninsured municipal bonds.
Merrill Lynch, Pierce, Fenner & Smith Incorporated (BofA Merrill Lynch) will remain the index provider for each fund.
