Invesco Bolsters Line of Low Volatility Investing Options, Adding Mutual Funds to Line of Recognized ETFs
HOUSTON, Aug. 12, 2013 /PRNewswire/ -- Invesco, a leader in low volatility investing, has expanded its innovative suite of low volatility products by introducing two mutual funds managed by its Invesco Quantitative Strategies team.
Effective July 31, 2013, the Invesco U.S. Quantitative Core Fund and Invesco Global Quantitative Core Fund were renamed and restructured, seeking to provide investors the opportunity to reduce risk and generate income without sacrificing total return. Invesco U.S. Quantitative Core Fund was renamed Invesco Low Volatility Equity Yield Fund, while the Invesco Global Quantitative Core Fund is now the Invesco Global Low Volatility Equity Yield Fund. The distribution frequency for both funds also was changed from annual to quarterly.
"A growing number of investors are looking to gain exposure to equity markets through products that may help preserve assets while providing income potential during this period when income can be hard to find, or what we like to call the Age of Income," said Andrew Schlossberg, Head of US Retail Distribution and Global ETFs.
Invesco will leverage an experienced team in actively managing its first low volatility mutual funds. The Invesco Quantitative Strategies team has been managing low volatility strategies since 2005 using a more holistic, total return approach, seeking the benefits of a combination of price appreciation, low volatility and higher income.
"Low volatility investing is supported by considerable evidence over the last two decades across global and regional equity markets showing investors could have earned potentially higher returns by investing in lower risk stocks," said Donna Wilson, Director of Portfolio Management for Invesco Quantitative Strategies, which manages approximately $23 billion1 in predominately institutional mandates.
The Invesco Low Volatility Equity Yield Fund and Invesco Global Low Volatility Equity Yield Fund 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 smartbeta3 exchange-traded funds (ETFs), manages approximately $5 billion2 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 SmallCap Low Volatility Portfolio (XSLV)
"We're committed to leveraging our global investment management capabilities to provide greater choice through active or passive management, mutual funds or ETFs to serve these investors," Mr. Schlossberg said.
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.
1As of June 30, 2013
2As of July 31, 2013
3Smart 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
There is no guarantee the funds will provide low volatility.
Invesco Low Volatility Equity Yield Fund and Invesco Global Low Volatility Equity Yield Fund
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 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.
The risks of investing in securities of foreign issuers can include fluctuations in foreign currencies, political and economic instability, and foreign taxation issues.
The investment techniques and risk analysis used by the portfolio managers may not produce the desired results.
Invesco Global Low Volatility Equity Yield Fund
An investment in emerging market countries carries greater risks compared to more developed economies.
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.
Many countries in the European Union are susceptible to high economic risks associated with high levels of debt, notably due to investments in sovereign debts of European countries such as Greece, Italy and Spain.
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.
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.