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Number six

Invesco PowerShares and FTSE Russell expand smart beta relationship


Invesco PowerShares Capital Management has expanded its relationship with FTSE Russell with the launch of six Pure Style ETFs on the NYSE Arca. 

The six ETFs are based on the Russell Pure Style Indexes, a new series of smart beta indexes introduced by FTSE Russell to build on its signature growth and value indexes. The PowerShares Russell Pure Style Portfolios provide investors who are seeking more control over style exposures in their portfolio with an optimum balance between growth and value segments within large-, mid-, and small-cap companies.

The PowerShares Russell Pure Style Portfolios include six ETFs that can be used as tactical tools to tilt an existing style allocation according to market dynamics. Unlike traditional style indexes that weight constituents based upon market capitalisation, the Russell Pure Style Index methodology weights constituents based upon their relative style characteristics, delivering enhanced style precision and eliminating the overlap between growth and value stocks that is inherent in traditional methodology.

Russell's U.S. equity indexes are amongst the most broadly utilised in the world, with their style methodology adopted by both institutional and retail investors for its elegance in measuring the growth and value segments of equity markets. Since Russell launched the first value and growth indexes in 1987, Russell style indexes have become leading benchmarks for style investing in the US.

The new ETFs are: 

PowerShares Russell Top 200 (Pure Value Portfolio (PXLV))
PowerShares Russell Top 200 (Pure Growth Portfolio (PXLG))
PowerShares Russell Midcap (Pure Value Portfolio (PXMV))
PowerShares Russell Midcap (Pure Growth Portfolio (PXMG))
PowerShares Russell 2000 Pure (Value Portfolio (PXSV))
PowerShares Russell 2000 (Pure Growth Portfolio (PXSG))

"We are pleased to offer a suite of products that offer precise, stylistically-pure investment solutions to investors' portfolios," says Dan Draper, Managing Director of Invesco PowerShares. "Through our partnership with FTSE Russell, we are able to provide clients access to a unique style methodology that offers sharp, focused and non-overlapping exposure."

"We are so excited to be expanding our relationship with Invesco PowerShares and growing our collaboration in developing and delivering smart beta-oriented index solutions for investors," says Ron Bundy, CEO of North American Benchmarks for FTSE Russell. "We hope to continue to build on our collaboration to benefit our clients going forward." 

"In a landscape where the needs of institutional and retail investors continue to evolve, the PowerShares Russell Pure Style portfolios offer investors greater control over the style exposures within their portfolios," added John Feyerer, Director of Equity ETF Product Strategy at Invesco PowerShares. "As one of the most broadly utilised style methodologies in the world, the Russell Pure Style indexes can help to build a customised investment portfolio when it is imperative that style allocation be sharp, focused, and stylistically pure."

In January 2015, Invesco PowerShares and FTSE Russell announced the launch of the PowerShares Russell 1000 Equal Weight Portfolio (EQAL) to offer advisors another smart beta option as building blocks for a diversified investment portfolio.  Following that launch, in March 2015, Invesco PowerShares announced the transition of the underlying index and index provider of their pure style portfolios to the Russell Pure Style methodology in an effort to align its fund offerings with a changing market dynamic and better meet investors' long-term goals. 

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