DOWNERS GROVE, Ill., March 10, 2016 /PRNewswire/ -- Invesco PowerShares Capital Management, LLC, a leading global provider of exchange-traded funds (ETFs), announced today the launch of the PowerShares DWA Tactical Multi-Asset Income Portfolio (DWIN). Dorsey, Wright & Associates (DWA) is a registered investment advisory firm based in Richmond, Virginia.
"Despite increased volatility in financial markets, we recognize that investors still expect better than average returns, which has become increasingly difficult for income investors looking for yield," said Dan Draper, Head of Invesco PowerShares. "This new multi-asset income solution helps investors navigate volatility using a sub-sector ETF rotation strategy covering a universe of seven income producing segments including treasuries."
The last 30 years have seen a strong bull market in fixed income, suppressing rates down to historically low levels. This phenomenon has caused investors to search for yield in a variety of untraditional asset classes including high yield, MLPs, and bank loans. While higher yields have been realized, investors also have realized an increase in volatility. A strategy that monitors these segments systematically may help mitigate some of this volatility while potentially maintaining higher income levels.
DWIN uses DWA's Relative Strength methodology, one of the most adaptive tools with regard to deciphering the strongest market trends versus weakest market trends. By its nature, relative strength tends to be longer term in scope, which can help reduce potential turnover, but also is adaptive enough to rotate a portfolio as the market dictates. The end result is a strategy that seeks to limit losses, while potentially profiting from upside trends. The Dorsey Wright Multi-Asset Income Index seeks to allocate between income producing strategies based on their proprietary relative strength methodology. Dorsey Wright's methodology incorporates relative performance to identify market trends which can ultimately be used to capitalize on performance differences between income segments.
"Dorsey Wright is excited to continue its long-standing and valued relationship with Invesco PowerShares with the launch of Dorsey Wright's first income-focused portfolio, the PowerShares DWA Tactical Multi-Asset Income Portfolio," said Tammy DeRosier, President of Dorsey, Wright & Associates. "This strategy is unique in its ability to pivot within a broad array of income funds toward areas that exhibit strong relative strength with an emphasis on income generation. We, along with PowerShares, continue to focus on bringing products to market that seek to meet the needs of our clients."
DWIN may be combined with other smart beta products or asset classes to create a strategic allocation. The ability to gain exposure to the strong income producing segments can be used as a complement to domestic or international equity holdings. Additionally, the portfolio can be used tactically in an effort to dial up or dial down risk. The treasury component is a natural mechanism for increasing and decreasing market exposure under varying market conditions.
To learn more about the Invesco PowerShares factor-based ETFs, please visit our Resources page and consider our latest paper 'Getting Smart about Beta' here: https://www.invesco.com/portal/site/us/financial-professional/active-passive-investing/
About Invesco PowerShares Capital Management LLC and Invesco, Ltd.
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 $101 billion as of December 31, 2015. PowerShares ETFs trade on both US stock exchanges. For more information, please visit us at invescopowershares.com or follow us on Twitter @PowerShares.
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.
There are risks involved with investing in ETFs, including possible loss of money. Shares are not actively managed and are subject to risks including those regarding short selling and margin maintenance requirements. Ordinary brokerage commissions apply. The fund is subject to certain other risks.
Please see the prospectus for more information regarding the risks associated with an investment in the fund. 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 Unit aggregations only, typically consisting of 50,000 shares.
Beta is a measure of risk representing how a security is expected to respond to general market movements. Smart beta represents an alternative and selection index based methodology that may outperform a benchmark or reduce portfolio risk or both. Smart beta funds may underperform cap-weighted benchmarks and increase portfolio risk.
The momentum style of investing is subject to the risk that the securities may be more volatile than the market as a whole, or that the returns on securities that have previously exhibited price momentum are less than returns on other styles of investing.
Obligations issued by US Government agencies and instrumentalities may receive varying levels of support from the government, which could affect the fund's ability to recover should they default. Fixed-income investments are subject to credit risk of the issuer and the effects of changing interest rates. Due to anticipated Federal Reserve Board policy changes, there is a risk that interest rates will rise in the near future.
Through its investments in the PowerShares ETFs, which each track a specific sector of the U.S. equity market, the Fund also will face specific risks inherent in each of these sectors: basic materials sector, consumer discretionary sector, consumer staples sector, energy sector, financial services sector, healthcare sector, industrials sector, technology sector and utilities sector risk.
The Fund invests primarily in other funds, the Fund's investment performance largely depends on the investment performance of those Underlying Funds. An investment in the Fund is subject to the risks associated with the PowerShares ETFs that comprise the Underlying Index.
Equity risk is the risk that the value of equity securities, including common stocks, may fall due to both changes in general economic and political conditions that impact the market as a whole, as well as factors that directly relate to a specific company or its industry.
Investments focused in a particular industry or sector are subject to greater risk, and are more greatly impacted by market volatility, than more diversified investments.
The fund is non-diversified and may experience greater volatility than a more diversified investment.
About Dorsey, Wright & Associates, LLC (DWA)
Dorsey, Wright & Associates is a registered investment advisory firm based in Richmond, Virginia. Since 1987, Dorsey Wright has been an advisor to financial professionals on Wall Street and investment managers worldwide. Dorsey Wright offers comprehensive investment research and analysis through their Global Technical Research Platform and provides research, modeling and indexes which apply Dorsey Wright's expertise in Relative Strength to various financial products including exchange trade funds, mutual funds, UITs, structured products, and separately managed accounts. Dorsey Wright's expertise is technical analysis. The Company uses Point & Figure Charting, Relative Strength analysis, and numerous other tools to analyze market data and deliver actionable insights. In 2015, Dorsey Wright was acquired by Nasdaq, Inc. allowing Dorsey Wright to work towards even greater innovative solutions for its clients.
PowerShares has arranged with Dorsey, Wright & Associates, LLC (DWA) to license the DWA Multi-Asset Income Index. Information provided on the Index should not be considered an offer to purchase or sell, or a solicitation of an offer to buy or purchase any security, including PowerShares ETF shares. Potential for profits is accompanied by possibility of loss. Neither PowerShares nor DWA through this document, provide investment advice or recommendations regarding any security, fund or market. There is no relationship between Dorsey, Wright & Associates, LLC ("Dorsey Wright") and Invesco PowerShares ("PowerShares") other than a license by Dorsey Wright to PowerShares of certain Dorsey Wright trademarks, tradenames, investment models, and indexes (the "DWA IP").
PowerShares® is a registered trademark of Invesco PowerShares Capital Management LLC, investment adviser. Invesco PowerShares Capital Management LLC (Invesco PowerShares) and Invesco Distributors, Inc., ETF distributor, are indirect, wholly owned subsidiaries of Invesco Ltd.
Note: Not all products available through all firms. Before investing, investors should carefully read the prospectus/summary prospectus and carefully consider the investment objectives, risks, charges and expenses. For this and more complete information about the Fund call 800 983 0903 or visit invescopowershares.com for the prospectus/summary prospectus.
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SOURCE Invesco PowerShares Capital Management, LLC