PowerShares Canada is to increase the net asset value (NAV) of three TSX-listed PowerShares exchange-traded funds (ETFs) calculated after close of business on 20 February, 2015.
PowerShares Fundamental High Yield Corporate Bond (CAD Hedged) Index ETF [TSX: PFH] and PowerShares Senior Loan (CAD Hedged) Index ETF [TSX: BKL] invest in one or more US Regulated Investment Companies (RICs) that earn and distribute qualified interest-related dividends.
The NAV increases are a result of the American Taxpayer Relief Act of 2012, which exempts qualifying income distributed by the relevant RICs to foreign entities, including the ETFs, from US withholding taxes.
Recognising the value this exemption provides investors, PowerShares Canada has reclaimed that portion of the taxes withheld in 2014.
The NAV and NAV per unit of each of the ETFs, calculated after the close of business on February 20, 2015, will increase to reflect their respective tax reclaim amounts.
The impact to NAV will be as follows:
PowerShares Fundamental High Yield Corporate Bond (CAD Hedged) Index ETF – USD0.18712 per share
PowerShares Senior Loan (CAD Hedged) Index ETF – USD0.17607 per share
PowerShares Tactical Bond ETF – USD0.00980 per share