Investors can now choose their currency
exposure
TORONTO, May 11, 2017 /CNW/ - In response to investor
demand, Invesco has added two additional series to one of its most
popular PowerShares exchange-traded funds (ETFs).
The new series provide greater flexibility for Canadians to
choose the currency exposure that best meets their personal
investing goals. Launched in April
2012, the PowerShares Senior Loan Index ETF
(BKL.F)† was Canada's first senior loan ETF. Marking the
fifth anniversary of that launch, the new series set a new
milestone: the first Canadian ETF to offer investors unhedged
exposure to senior loans.
"After many years of interest-rate stagnation, monetary policy
appears to be tightening in the U.S., which may introduce greater
volatility to the fixed-income market," says Christopher Doll, Vice President, Head of
Product and Business Strategy, PowerShares Canada. "Investors
seeking to dampen the potential impact of rising rates may want to
consider diversifying their fixed-income portfolios beyond
traditional government and corporate bonds."
The initial offering of the two new series of PowerShares Senior
Loan Index ETF has now closed. These new series, available in
unhedged Canadian-dollar-denominated units (BKL.C) and
unhedged U.S.-dollar-denominated units (BKL.U), will be
available for trading on TSX when the market opens today.
Previously, PowerShares Senior Loan Index ETF was available only
in Canadian-dollar-hedged units, which will continue to trade on
TSX under the ticker BKL.F.
Senior loans present a unique set of potential benefits for
investors, including
- Enhanced yield: Senior loans have historically provided
a higher yield than other fixed-income securities of equal or
higher credit quality
- Reduced interest-rate sensitivity: The low-duration
nature of senior loans may help to reduce a portfolio's overall
interest-rate sensitivity. Senior loans deliver yield without
exposing investors to the long end of the interest-rate curve. This
is due to the LIBOR component of the senior loan interest payments,
which resets, on average, every 90 days. The reset mechanism not
only reduces the risk of the loan price falling, but it also allows
investors to participate positively in any further rate increases
at the short end of the curve
- Priority of repayment and protection: In the event of
default, senior secured loans rank the highest in the capital
structure
- Low correlation to traditional bonds: Senior loans, as
represented by the S&P/LSTA U.S. Leveraged Loan 100 Index, have
had low correlation to other segments of the fixed-income
market
Invesco will consider rolling out similar series of additional
ETFs, based on investor demand.
For more information, please visit invesco.ca. You can
also connect with Invesco on Twitter (@InvescoCanada), LinkedIn,
Facebook or through the Invesco Canada blog.
About Invesco Ltd.
Invesco Ltd. is an independent
investment management firm dedicated to delivering an investment
experience that helps people get more out of life. NYSE: IVZ;
invesco.com.
Commissions, management fees and expenses may all be associated
with investments in exchange-traded funds (ETFs). ETFs are not
guaranteed, their values change frequently and past performance may
not be repeated. Please read the prospectus before investing.
Copies are available from Invesco Canada Ltd. at
powershares.ca. There are risks involved with investing in
ETFs. Please read the prospectus for a complete description of
risks relevant to the ETF. Ordinary brokerage commissions apply to
purchases and sales of ETF units.
† Effective on January 12,
2017, the following name and ticker changes were made:
PowerShares Senior Loan (CAD Hedged) Index ETF (BKL) became
PowerShares Senior Loan Index ETF (BKL.F).
S&P® is a registered trademark of Standard &
Poor's Financial Services LLC and has been licensed for use by
S&P Dow Jones Indices LLC and sublicensed for certain purposes
by Invesco Canada Ltd. LSTA® is a registered trademark
of Loan Syndications and Trading Association and has been licensed
for use by S&P Dow Jones Indices LLC and Invesco Canada Ltd.
The S&P/LSTA U.S. Leverage Loan 100 Index is a product of
S&P Dow Jones Indices LLC, and has been licensed for use by
Invesco Canada Ltd. Invesco Canada Ltd.'s PowerShares Senior Loan
Index ETF is not sponsored, endorsed, sold or promoted by S&P
Dow Jones Indices LLC or its affiliates or LSTA, and none of
S&P Dow Jones Indices LLC or its affiliates or LSTA make any
representation regarding the advisability of investing in such a
product.
Most PowerShares ETFs seek to replicate, before fees and
expenses, the performance of the applicable index, and are not
actively managed. This means that the sub-advisor will not attempt
to take defensive positions in declining markets and the ETF will
continue to provide exposure to each of the securities in the index
regardless of whether the financial condition of one or more
issuers of securities in the index deteriorates. In contrast, if a
PowerShares ETF is actively managed, then the sub-advisor has
discretion to adjust that PowerShares ETF's holdings in accordance
with the ETF's investment objectives and strategies.
PowerShares and Invesco are registered business names of Invesco
Canada Ltd.
Invesco® and all associated trademarks are trademarks
of Invesco Holding Company Limited, used under licence.
PowerShares® and all associated trademarks are
trademarks of Invesco PowerShares Capital Management LLC (Invesco
PowerShares), used under licence.
© Invesco Canada Ltd., 2017
SOURCE Invesco Canada Ltd.