Fund Management
Invesco PowerShares Launches Three New ETFs
The three funds will continue to establish the firm's European suite of nine active and passively managed fixed income ETFs co-managed by PIMCO.
Invesco
PowerShares has launched three exchange-traded funds in a bid
to meet strong demand among European investors for low-cost fixed
income vehicles, it said.
The PowerShares USD Corporate Bond UCITS ETF, PowerShares Euro
Corporate Bond UCITS ETF and PowerShares Emerging Markets USD
Bond UCITS ETF will build on PowerShares’ European suite of
nine active-and passively-managed fixed income ETFs co-managed by
PIMCO, as well as the PowerShares US High Yield Fallen Angels
UCITS ETF, the firm said in a statement.
The PowerShares USD Corporate Bond UCITS ETF will track the
Bloomberg Barclays USD Investment Grade Corporate
Liquidity-Screened Bond Index. The average rating of underlying
assets is A-, with industrials accounting for around 60 per cent
of sector allocation, and a yield to maturity of 3.11 per
cent.
The PowerShares Euro Corporate Bond UCITS ETF will track the
Bloomberg Barclays Euro Corporate Index. The average rating of
underlying assets is A-, with industrials accounting for just
over half of the sector allocation, and a yield to maturity of
0.61 per cent.
The PowerShares Emerging Markets USD Bond UCITS ETF will track
the Bloomberg Barclays Emerging Markets USD Sovereign Bond Index.
The average rating of underlying assets is BB+, with a yield to
maturity of 4.87 per cent. The top five country holdings are
Argentina, Indonesia, Turkey, Mexico and Saudi Arabia.
The firm’s European fixed income ETFs are managed by a team of
six, led by Jeff Kernagis. In October, the firm expanded its
range of short-term high yield ETFs with the launch of the PIMCO
Euro Short-Term High Yield Corporate Bond Index Source UCITS
ETF.
Invesco PowerShares has $29.8 billion in fixed income assets
under management.