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Products May 1, 2009
Invesco PowerShares Plans to Close 19 ETFs
Invesco PowerShares Capital Management announced today plans to close 19 exchange-traded funds (ETFs).
Reported by Alison Cooke
The move is being made “in an effort to position its business for future growth opportunities and to align its family of ETFs with the changing investment landscape,” the company said in a press release. PowerShares offers 135 unique portfolios with assets of $25.8 billion as of March 31. The funds being closed represent less than 1% of the company’s total assets.
Invesco will begin the process of closing down and liquidating their respective portfolios early this month and the final day of trading will be May 18. This process will cause each fund’s holdings to deviate from the securities included in its underlying index and each fund to increase its cash holdings, which may lead to increased tracking error, the company said.
The ETFs to be closed, with their ticker symbols, are:
- PowerShares Dynamic Aggressive Growth Portfolio (PGZ)
- PowerShares Dynamic Asia Pacific Portfolio (PUA)
- PowerShares Dynamic Deep Value Portfolio (PVM)
- PowerShares Dynamic Europe Portfolio (PEH)
- PowerShares Dynamic Hardware & Consumer Electronics Portfolio (PHW)
- PowerShares FTSE RAFI Asia Pacific ex-Japan Small-Mid Portfolio (PDQ)
- PowerShares FTSE RAFI Basic Materials Sector Portfolio (PRFM)
- PowerShares FTSE RAFI Consumer Goods Sector Portfolio (PRFG)
- PowerShares FTSE RAFI Consumer Services Sector Portfolio (PRFS)
- PowerShares FTSE RAFI Energy Sector Portfolio (PRFE)
- PowerShares FTSE RAFI Europe Small-Mid Portfolio (PWD)
- PowerShares FTSE RAFI Financials Sector Portfolio (PRFF)
- PowerShares FTSE RAFI Health Care Sector Portfolio (PRFH)
- PowerShares FTSE RAFI Industrials Sector Portfolio (PRFN)
- PowerShares FTSE RAFI International Real Estate Portfolio (PRY)
- PowerShares FTSE RAFI Telecommunications & Technology Sector Portfolio (PRFQ)
- PowerShares FTSE RAFI Utilities Sector Portfolio (PRFU)
- PowerShares High Growth Rate Dividend Achievers Portfolio (PHJ)
- PowerShares International Listed Private Equity Portfolio (PFP)
“After carefully evaluating numerous factors including shareholder considerations, length of time on the market, asset levels, and the potential for future growth, we proposed closing certain portfolios that have not gained sufficient acceptance with investors,” said Bruce Bond, president and CEO of Invesco PowerShares. “We remain fully committed to the ETF industry and expect to offer new, exciting products in the months ahead.”