Invesco Launches Treasury Collateral Portfolio (CLTL), Leveraging the Efficient ETF Structure to Create a Collateral Pledge Solution for Institutions
12 Jan, 2017, 07:00 ET
DOWNERS GROVE, Ill., Jan. 12, 2017 /PRNewswire/ -- Invesco (NYSE: IVZ), a leading global provider of exchange-traded funds (ETFs), announced today the launch of PowerShares Treasury Collateral Portfolio (NYSE: CLTL) as an ETF designed to track the price and yield of the ICE US Treasury Short Bond Index, a market value weighted index that includes US dollar denominated, fixed and floating rate securities with minimum term to maturity greater than one month and less than or equal to one year in the US Treasury market.
PowerShares CLTL is an ETF solution designed for institutional and retail clients. On the institutional side, the ETF may offer an alternative to clients who need to post collateral to meet margin requirements or non-margin collateral. For retail clients, CLTL provides a convenient, low cost option to access safe haven instruments such as US Treasuries with ultra-short duration.
"As an ETF leader, we're always looking for new solutions to help institutional and retail clients navigate the evolving macro and regulatory environment," said Dan Draper, Global Head of PowerShares by Invesco. "Money market reform will have an impact on US investors going forward, so we're introducing this Treasury collateral ETF to help ease certain challenges on deck for our clients."
CLTL's portfolio will also be managed by Invesco's Global Liquidity Group, which consists of 16 investment professionals and over $80 billion in AUM.
The Fund generally will invest at least 80% of its total assets in the components of the underlying index, which is designed to measure the performance of US Treasury Obligations with a maximum remaining term to maturity of 12 months. "US Treasury Obligations" refer to securities issued or guaranteed by the US Treasury where the payment of principal and interest is backed by the full faith and credit of the US government. They include US Treasury notes, US Treasury bills and US Treasury floating rate bonds.
The underlying index includes all publicly-issued, non-convertible US Treasury Obligations that are issued in US dollars and have a maximum remaining maturity of greater than one month and less than or equal to 12 months, at the time of rebalance, and a minimum amount outstanding of $300 million. The underlying index excludes inflation-linked securities, floating rate notes, cash management bills, and any government agency debt issued with or without a government guarantee.
Invesco is an independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. NYSE: IVZ; www.invesco.com.
About PowerShares by Invesco
PowerShares by Invesco is leading the Intelligent ETF Revolution® through its family of more than 140 domestic and international PowerShares exchange-traded funds (ETFs). PowerShares ETFs seek to outperform traditional benchmark indexes while providing advisors and investors access to an innovative array of focused investment opportunities. PowerShares has US franchise assets exceeding $110 billion as of December 30, 2016. For more information, please visit us at powershares.com or follow us on Twitter @PowerShares.
Important Risk Information
There are risks involved with investing in ETFs, including possible loss of money. Index-based ETFs are not actively managed. Actively managed ETFs do not necessarily seek to replicate the performance of a specified index. Both index-based and actively managed ETFs are subject to risks similar to stocks, including those related to short selling and margin maintenance. Ordinary brokerage commissions apply. The Fund's return may not match the return of the Index.
Debt securities are affected by changing interest rates and changes in their effective maturities and credit quality.
Treasury securities are backed by the full faith and credit of the US government as to the timely payment of principal and interest.
The Fund's use of a representative sampling approach will result in its holding a smaller number of bonds than are in the underlying Index, and may be subject to greater volatility.
The Fund is non-diversified and may experience greater volatility than a more diversified investment.
The Fund may engage in frequent trading of its portfolio securities in connection with the rebalancing or adjustment of the Underlying Index.
The Fund currently intends to effect creations and redemptions principally for cash, rather than principally in-kind because of the nature of the Fund's investments. As such, investments in the Fund may be less tax efficient than investments in ETFs that create and redeem in-kind.
The Fund is not a money market fund and does not attempt to maintain a stable net asset value ("NAV").
During periods of reduced market volatility or in the absence of readily available market quotations for the holdings of the Fund, the ability of the Fund to value its holdings becomes more difficult and the judgment of the Sub-Adviser may play a greater role in the valuation of the Fund's holdings due to reduced availability of reliable objective pricing data.
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.
Shares are not individually redeemable and owners of the Shares may acquire those Shares from the Funds and tender those shares for redemption to the Funds in Creation Unit aggregations only, typically consisting of 10,000, 50,000, 75,000, 100,000 or 200,000 Shares.
PowerShares® is a registered trademark of Invesco PowerShares Capital Management LLC, investment adviser. Invesco PowerShares Capital Management LLC (PowerShares) and Invesco Distributors, Inc., ETF distributor, are indirect, wholly owned subsidiaries of Invesco Ltd.
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.
SOURCE Invesco Ltd.
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