Invesco Adds to Line of Low Volatility Investing Options with Emerging Markets Mutual Fund
HOUSTON, Jan. 7, 2014 /PRNewswire/ -- Invesco expanded today its innovative suite of low volatility products by launching the Invesco Low Volatility Emerging Markets Fund.
Managed by Invesco Quantitative Strategies (IQS), the strategy will seek to outperform the MSCI Emerging Markets index over the long term with a lower risk profile.
"Invesco continues to provide investors alternative beta solutions such as actively managed low volatility strategies that have the potential to deliver higher risk-adjusted returns and help to preserve wealth during stressed market cycles," said Donna Wilson, Director of Portfolio Management for IQS. "Managing volatility can help investors diversify their equity allocation beyond the traditional active and passive benchmark-centric strategies.
"Equity market risk is generally high compared with other asset classes, especially when considering emerging markets equity. We will seek to achieve a competitive long-term return while targeting a level of total risk (volatility) lower than the market index by relaxing traditional benchmark-centric constraints (e.g., country/sector exposures, market capitalization, and style). This creates a very broad opportunity set, allowing us to seek out securities with the most attractive risk/return profile."
With approximately $24 billion* in assets under management, IQS has been offering actively managed global and regional low volatility strategies since 2005, primarily to institutional investors. On July 31, 2013, Invesco transitioned two long-standing US and Global Core Equity retail funds managed by IQS to focus on lower volatility and higher yield, providing investors the opportunity to seek a competitive long-term total return with an emphasis on both higher dividend income and lower volatility.
Low volatility strategies can be attractive for investors looking for potential risk reduction or return enhancement while maintaining exposure to the equity markets.
The Invesco Low Volatility Emerging Markets Fund now joins Invesco Low Volatility Equity Yield Fund and Invesco Global Low Volatility Equity Yield Fund to provide greater depth and optionality to Invesco's suite of low volatility products.
Invesco already offers an intelligently designed, passively managed approach to low volatility investing that seeks to track low volatility indexes. Invesco PowerShares, the leader in smartbeta1 exchange-traded funds (ETFs) based on number of product offerings, manages approximately $4.6 billion* in five ETFs focused on low volatility stocks:
- PowerShares S&P 500@ Low Volatility Portfolio (SPLV)
- PowerShares S&P International Developed Low Volatility Portfolio (IDLV)
- PowerShares S&P Emerging Markets Low Volatility Portfolio (EELV)
- PowerShares S&P MidCap Low Volatility Portfolio (XMLV)
- PowerShares S&P SmallCap Low Volatility Portfolio (XSLV)
About Invesco Ltd.
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 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 www.invesco.com.
About Invesco PowerShares
Invesco PowerShares Capital Management LLC is leading the Intelligent ETF Revolution® 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 $78 billion as of June 30, 2013, PowerShares ETFs trade on both US stock exchanges. For more information, please visit us at invescopowershares.com or follow us on Twitter @PowerShares.
*As of September 30, 2013
1Smart beta is an attempt to implement a methodology or strategy to provide an alternative market/index beta that seeks to offer a benefit to investors.
NOT FDIC INSURED, MAY LOSE VALUE, OFFER NO BANK GUARANTEE
Beta is a measure of relative risk and the slope of regression.
Diversification does not guarantee a profit or eliminate the risk of loss.
There is no guarantee the funds will provide low volatility.
Invesco Low Volatility Emerging Markets Fund
Currency/Exchange Rate Risk. The dollar value of the fund's foreign investments will be affected by changes in the exchange rates between the dollar and the currencies in which those investments are traded.
Depositary Receipts Risk. Depositary receipts involve many of the same risks as a direct investment in foreign securities, and issuers of certain depositary receipts are under no obligation to distribute shareholder communications to the holders or to pass through to them any voting rights with respect to the deposited securities.
Derivatives Risk. Derivatives may be more volatile and less liquid than traditional investments and are subject to market, interest rate, credit, leverage, counterparty and management risks. An investment in a derivative could lose more than the cash amount invested.
Emerging Markets Securities Risk. An investment in emerging market countries carries greater risks compared to more developed economies.
Equity Risk. In general, stock values fluctuate, sometimes widely, in response to activities specific to the company as well as general market, economic and political conditions.
Foreign Securities Risk. The risks of investing in securities of foreign issuers can include fluctuations in foreign currencies, political and economic instability, and foreign taxation issues.
Geographic Focus Risk. The performance of an investment concentrated in issuers of a certain region or country is expected to be closely tied to conditions within that region and to be more volatile than more geographically diversified funds.
Large Capitalization Company Risk. Larger, more established companies may be unable to respond quickly to new competitive challenges such as changes in consumer tastes or innovative smaller competitors. Returns on investments in large capitalization companies could trail the returns on investments in smaller companies.
Management Risk. The investment techniques and risk analysis used by the portfolio managers may not produce the desired results.
Market Risk. The prices of and the income generated by the fund's securities may decline in response to, among other things, investor sentiment, general economic and market conditions, regional or global instability, and currency and interest rate fluctuations.
Preferred Securities Risk. Preferred securities may include provisions that permit the issuer to defer or omit distributions for a certain period of time, and reporting the distribution for tax purposes may be required, even though the income may not have been received. Further, preferred securities may lose substantial value due to the omission or deferment of dividend payments.
Small- and Mid-Capitalization Risk. Stocks of small and mid-sized companies tend to be more vulnerable to adverse developments, may be more volatile, and may be illiquid or restricted as to resale, or may trade less frequently and in smaller volumes, all of which may cause difficulty when establishing or closing a position at a desirable price.
An investor should consider the Funds' investment objectives, risks, charges and expenses carefully before investing. For this and more complete information about the fund(s), investors should ask their advisers for a prospectus/summary prospectus or visit invesco.com/fundprospectus. For this and more complete information about the ETFs call 800 983 0903 or visit invescopowershares.com for a prospectus. Please read the prospectus carefully before investing.
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. The Funds' return may not match the return of the Underlying Index.
ETF 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 Units only, typically consisting of aggregations of 50,000 shares.
Invesco Distributors, Inc. is the distributor of the PowerShares Exchange-Traded Fund Trust II and is the U.S. distributor for Invesco Ltd.'s retail mutual funds, exchange-traded funds and institutional money market funds and the subdistributor for its STIC Global Funds.
PowerShares® is a registered trademark of Invesco PowerShares Capital Management LLC (Invesco PowerShares). Invesco PowerShares Capital Management LLC and Invesco Distributors, Inc. are indirect, wholly owned subsidiaries of Invesco Ltd.