Invesco PowerShares Lists Global Short Term High Yield Bond Portfolio
CHICAGO, IL -- (Marketwired) -- 06/20/13 -- Invesco PowerShares
Capital Management LLC, a leading global provider of exchange-traded
funds (ETFs), announced today the launch of the PowerShares Global
Short Term High Yield Bond Portfolio (PGHY) on the NYSE Arca.
PGHY provides investors access to short-term US dollar-denominated,
high-yield debt that is issued globally; including sovereign,
quasi-government and corporate bond securities. PGHY has an expense
ratio of 0.35% and is expected to issue monthly distributions.
-- PowerShares Global Short Term High Yield Bond Portfolio (PGHY)
"We are excited to launch a timely product solution for income
investors looking for a potential protection against rising interest
rates," said Lorraine Wang, Invesco PowerShares senior vice president
of new product development. "The PowerShares global Short Term High
Yield Bond Portfolio (PGHY) provides a convenient way for investors
to gain exposure to a portfolio of high-yield bonds from issuers
around the globe, while taking on a relatively low level of interest
"Bonds with shorter maturities generally carry less duration risk
than bonds with longer maturities and can help investors protect
fixed-income portfolios against rising interest rates," added Joseph
Becker, senior fixed-income product strategist at Invesco
PowerShares. "While high-yield bonds generally carry higher credit
risk, they also offer investors higher rates of income. We believe
today's exceptionally low interest rates, particularly at the short
end of the yield curve, position short-term, high-yield bonds as an
attractive investment for income seeking investors."
The PowerShares Global Short Term High Yield Bond Portfolio (PGHY) is
based on the DB Global Short Maturity High Yield Bond Index (Index).
PGHY generally will invest at least 80% of its total assets in bonds
included in the Index. The Index tracks the performance of US
dollar-denominated, short-term, non-investment grade bonds with three
years or less to maturity; that are issued by US and foreign
corporations, as well as by supranational, sovereign or sub-sovereign
government entities. PGHY and the Index are rebalanced quarterly and
Invesco PowerShares Capital Management LLC is Leading the Intelligent
ETF Revolution(R) through its family of more than 140 domestic and
international exchange-traded funds, which seek to outperform
traditional benchmark indexes while providing advisors and investors
access to an innovative array of focused investment opportunities.
With franchise assets over $77 billion as of March 31, 2013,
PowerShares ETFs trade on both US stock exchanges. For more
information, please visit us at invescopowershares.com or follow us
on Twitter @PowerShares.
Invesco, Ltd. is a leading independent global investment management
firm, dedicated to helping investors worldwide achieve their
financial objectives. By delivering the combined power of our
distinctive investment management capabilities, Invesco provides a
wide range of investment strategies and vehicles to our retail,
institutional and high net worth clients around the world. Operating
in more than 20 countries, the firm is listed on the New York Stock
Exchange under the symbol IVZ. Additional information is available at
Note: Not all products are available through all firms.
There are risks involved with investing in ETFs, including possible
loss of money. Shares are not actively managed and are subject to
risks similar to those of stocks, including those regarding short
selling and margin maintenance requirements. Ordinary brokerage
commissions apply. Fixed-income securities, such as notes and bonds,
which carry interest rate and credit risk. Interest rate risk refers
to the risk that bond prices generally fall as interest rates rise
and vice versa. Credit risk is the risk of loss on an investment due
to the deterioration of an issuer's financial health.
The Fund will invest in bonds with a short-term (three years or less)
maturity. Short-term maturity may have additional risks, including
interest rate changes over the life of a bond. The average maturity
of the Fund's investments will affect the volatility of the Fund's
All or a significant portion of the securities in which the Fund will
invest will be noninvestment grade securities that are considered
speculative. Non-investment grade securities have additional risks,
including higher default risk and decreased market liquidity.
Global bonds are subject to the same risks as other debt issues,
notably credit risk, market risk, interest rate risk and liquidity
Risks of sovereign debt include the relative size of the debt burden
to the economy as a whole and the government debtor's policy towards
the International Monetary Fund and the political constraints to
which a government debtor may be subject.
Sub-sovereign government bonds represent the debt of state,
provincial, territorial, municipal, local or other political
sub-divisions, including other governmental entities or agencies,
other than sovereign governments. In addition to sovereign debt risk,
risks of investing in sub-sovereign debt include the fact that such
investments may or may not be issued by, or guaranteed as to
principal and interest by, the sub-sovereign's larger sovereign
The Fund may invest in obligations issued or guaranteed by
supranational entities, which may include, for example, entities such
as the International Bank for Reconstruction and Development (the
World Bank). If one or more shareholders of a supranational entity
fails to make necessary additional capital contributions, the entity
may be unable to pay interest or repay principal on its debt
securities, and the Fund may lose money on such investments.
The Fund's underlying securities may be subject to call risk, which
may result in the Fund having to reinvest the proceeds at lower
interest rates, resulting in a decline in the Fund's income.
The Fund will invest in foreign bonds and, because foreign exchanges
may be open on days when the Fund does not price its shares, the
value of the non-US securities in the Fund's portfolio may change on
days when you will not be able to purchase or sell your Shares.
The Fund's use of a representative sampling approach will result in
its holding a smaller number of securities than are in the underlying
Index, and may be subject to greater volatility.
The Fund is considered non-diversified and may be subject to greater
risks than a diversified fund.
Shares are not individually redeemable and owners of the shares may
acquire those shares from the Fund and tender those shares for
redemption to the Fund in Creation Unit aggregations only, typically
consisting of 50,000 shares.
Shares are not FDIC insured, may lose value and have no bank
PowerShares(R) is a registered trademark of Invesco PowerShares
Capital Management LLC (Invesco PowerShares). Invesco PowerShares and
Invesco Distributors, Inc. are indirect, wholly owned subsidiaries of
Invesco Ltd. Invesco Distributors, Inc. is the distributor of the
PowerShares Exchange-Traded Fund Trust II.
"Deutsche Bank" and the DB Global Short Maturity High Yield Bond
Index are reprinted with permission. Copyright Copyright 2013
Deutsche Bank AG. All rights reserved. "Deutsche Bank" is a service
mark of Deutsche Bank AG and has been licensed for use for certain
purposes by the adviser. The Fund is not sponsored, endorsed, sold or
promoted by Deutsche Bank AG or any of its affiliates of
subsidiaries. Deutsche Bank AG and Deutsche Bank Securities Inc., as
Index Provider, make no representation, express or implied, regarding
the advisability of investing in this product. As the Index Provider,
Deutsche Bank AG and Deutsche Bank Securities Inc. are licensing
certain trademarks, the underlying Index and trade names which are
composed by Deutsche Bank AG and Deutsche Bank Securities Inc.
without regard to this Index, this product or any investor.
An investor should consider the Fund's investment objective, risks,
charges and expenses carefully before investing. For this and more
complete information about the Fund call 800 983 0903 or visit
invescopowershares.com for a prospectus. Please read the prospectus
carefully before investing.
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