Invesco PowerShares Capital Management LLC Temporarily Suspends Ability of Authorized Participants to Purchase New Creation Baskets in Eleven PowerShares DB Funds.
DOWNERS GROVE, Ill., Feb. 25, 2015 /PRNewswire/ -- Invesco PowerShares Capital Management LLC ("Invesco"), the managing owner and commodity pool operator of the funds, has temporarily suspended the ability of Authorized Participants to purchase new Creation Baskets in the PowerShares DB exchange-traded funds. These funds include PowerShares DB Commodity Index Tracking Fund (DBC), PowerShares DB G10 Currency Harvest Fund (DBV), PowerShares DB Energy Fund (DBE), PowerShares DB Oil Fund (DBO), PowerShares DB Precious Metals Fund (DBP), PowerShares DB Gold Fund (DGL), PowerShares DB Silver Fund (DBS), PowerShares DB Base Metals Fund (DBB) , PowerShares DB Agriculture Fund (DBA), PowerShares DB US Dollar Index Bullish Fund (UUP), and PowerShares DB US Dollar Bearish Fund (UDN). This suspension is made in connection with the transition to Invesco as managing owner of the funds, while Invesco works quickly with the Securities and Exchange Commission to have declared effective a post-effective amendment to the funds' registration statements, as well as approval by the National Futures Association. The funds will file another Form 8-K to announce the resumption of the offering of Creation Baskets, which Invesco expects will occur shortly. The ability of Authorized Participants to redeem Creation Baskets is not affected.
During the suspension, Invesco believes that Authorized Participants and other groups that make a market in shares of the funds will continue to actively trade the shares. However, there may be increases in the spread they quote between offers to buy and sell shares to allow them to adjust to the potential uncertainty as to when they might be able to purchase additional Creation Baskets. In addition, there could be a significant variation between the market price at which shares are traded and the shares' net asset value, which is also the price at which shares can be redeemed by Authorized Participants in Creation Baskets. The potential impact of either wider spreads between bid and offer prices, or reduced number of shares on which quotes may be available, could increase trading costs to investors. Invesco believes that any potential impact to the market in shares of the funds will not extend beyond the time of the suspension.
Invesco is seeking to cause the suspension to be lifted as promptly as practicable.
Any forward-looking statements herein are based on expectations of Invesco at this time. Whether or not actual results and developments will conform to Invesco's expectations and predictions, however, is subject to a number of risks and uncertainties, including the special considerations discussed in the funds' prospectus, general economic, market and business conditions, changes in laws or regulations or other actions made by governmental authorities or regulatory bodies, and other world economic and political developments. The funds and Invesco undertake no duty to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
About Invesco Ltd and Invesco PowerShares Capital Management LLC
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.
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 of nearly $100 billion* as of December 31, 2014, PowerShares ETFs trade on both US stock exchanges. For more information, please visit us at invescopowershares.com or follow us on Twitter @PowerShares.
*US franchise assets include QQQs, BLDRS and DB Funds. ALPS Distributors, Inc. is the distributor of PowerShares QQQ, BLDRS Funds and PowerShares DB Funds. PowerShares QQQ and BLDRS Funds are unit investment trusts. Invesco PowerShares and Invesco Distributors, Inc. are not affiliated with ALPS Distributors, Inc.
PowerShares® 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, the PowerShares Exchange-Traded Fund Trust II, the PowerShares India Exchange-Traded Fund Trust, the PowerShares Actively Managed Exchange-Traded Fund Trust and the PowerShares Actively Managed Exchange-Traded Commodity Fund Trust.
Not FDIC Insured | May Lose Value | No Bank Guarantee
SOURCE Invesco Ltd.
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