DOWNERS GROVE, Ill.,
Jan. 12, 2017 /PRNewswire/
-- Invesco (NYSE: IVZ), a leading global provider of
exchange-traded funds (ETFs), announced today the launch of
PowerShares Treasury Collateral Portfolio (NYSE: CLTL) as an ETF
designed to track the price and yield of the ICE US Treasury Short
Bond Index, a market value weighted index that includes US dollar
denominated, fixed and floating rate securities with minimum term
to maturity greater than one month and less than or equal to one
year in the US Treasury market.
PowerShares CLTL is an ETF solution designed for institutional
and retail clients. On the institutional side, the ETF may offer an
alternative to clients who need to post collateral to meet margin
requirements or non-margin collateral. For retail clients, CLTL
provides a convenient, low cost option to access safe haven
instruments such as US Treasuries with ultra-short duration.
"As an ETF leader, we're always looking for new solutions to
help institutional and retail clients navigate the evolving macro
and regulatory environment," said Dan
Draper, Global Head of PowerShares by Invesco. "Money market
reform will have an impact on US investors going forward, so we're
introducing this Treasury collateral ETF to help ease certain
challenges on deck for our clients."
CLTL's portfolio will also be managed by Invesco's Global
Liquidity Group, which consists of 16 investment professionals and
over $80 billion in AUM.
The Fund generally will invest at least 80% of its total assets
in the components of the underlying index, which is designed to
measure the performance of US Treasury Obligations with a maximum
remaining term to maturity of 12 months. "US Treasury Obligations"
refer to securities issued or guaranteed by the US Treasury where
the payment of principal and interest is backed by the full faith
and credit of the US government. They include US Treasury notes, US
Treasury bills and US Treasury floating rate bonds.
The underlying index includes all publicly-issued,
non-convertible US Treasury Obligations that are issued in US
dollars and have a maximum remaining maturity of greater than one
month and less than or equal to 12 months, at the time of
rebalance, and a minimum amount outstanding of $300 million. The underlying index excludes
inflation-linked securities, floating rate notes, cash management
bills, and any government agency debt issued with or without a
government guarantee.
About Invesco
Invesco is an independent investment
management firm dedicated to delivering an investment experience
that helps people get more out of life. NYSE: IVZ;
www.invesco.com.
About PowerShares by Invesco
PowerShares by Invesco is
leading the Intelligent ETF Revolution® through its
family of more than 140 domestic and international PowerShares
exchange-traded funds (ETFs). PowerShares ETFs seek to outperform
traditional benchmark indexes while providing advisors and
investors access to an innovative array of focused investment
opportunities. PowerShares has US franchise assets exceeding
$110 billion as of December 30, 2016. For more information, please
visit us at powershares.com or follow us on Twitter
@PowerShares.
Important Risk Information
There are risks involved
with investing in ETFs, including possible loss of money.
Index-based ETFs are not actively managed. Actively managed ETFs do
not necessarily seek to replicate the performance of a specified
index. Both index-based and actively managed ETFs are subject to
risks similar to stocks, including those related to short selling
and margin maintenance. Ordinary brokerage commissions apply. The
Fund's return may not match the return of the Index.
Debt securities are affected by changing interest rates and
changes in their effective maturities and credit quality.
Treasury securities are backed by the full faith and credit of
the US government as to the timely payment of principal and
interest.
The Fund's use of a representative sampling approach will result
in its holding a smaller number of bonds than are in the underlying
Index, and may be subject to greater volatility.
The Fund is non-diversified and may experience greater
volatility than a more diversified investment.
The Fund may engage in frequent trading of its portfolio
securities in connection with the rebalancing or adjustment of the
Underlying Index.
The Fund currently intends to effect creations and redemptions
principally for cash, rather than principally in-kind because of
the nature of the Fund's investments. As such, investments in the
Fund may be less tax efficient than investments in ETFs that create
and redeem in-kind.
The Fund is not a money market fund and does not attempt to
maintain a stable net asset value ("NAV").
During periods of reduced market volatility or in the absence of
readily available market quotations for the holdings of the Fund,
the ability of the Fund to value its holdings becomes more
difficult and the judgment of the Sub-Adviser may play a greater
role in the valuation of the Fund's holdings due to reduced
availability of reliable objective pricing data.
Investments focused in a particular industry or sector are
subject to greater risk, and are more greatly impacted by market
volatility, than more diversified investments.
Shares are not individually redeemable and owners of the Shares
may acquire those Shares from the Funds and tender those shares for
redemption to the Funds in Creation Unit aggregations only,
typically consisting of 10,000, 50,000, 75,000, 100,000 or 200,000
Shares.
PowerShares® is a registered trademark of Invesco
PowerShares Capital Management LLC, investment adviser. Invesco
PowerShares Capital Management LLC (PowerShares) and Invesco
Distributors, Inc., ETF distributor, are indirect, wholly owned
subsidiaries of Invesco Ltd.
Before investing, investors should carefully read the
prospectus/summary prospectus and carefully consider the investment
objectives, risks, charges and expenses. For this and more complete
information about the Fund call 800 983 0903 or visit
invescopowershares.com for the prospectus/summary
prospectus.
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SOURCE Invesco Ltd.