London Stock Exchange welcomes invesco powershares
Invesco PowerShares doubles High Div Low Vol range with two ETFs on FTSE Russell indices
Invesco Powershares is delighted to open the market on London Stock Exchange on June 1st 2016 to celebrate the listing of two new ETFs tracking FTSE Russell High Dividend Low Volatility strategy indices.
The PowerShares FTSE UK High Dividend Low Volatility UCITS ETF aims to provide investors with returns which, before expenses, correspond to the price and yield performance of the FTSE UK High Dividend Low Volatility Net Total Return Index1 (a dual-factor index) in GBP terms by holding, as far as practicable, all of the Index’s constituents in their respective weighting.
- ISIN: IE00BYYXBD20
- SEDOL: BYYXBD2 (GBP trading line)
- Investment method: Physical index replication
- Replication method: Full replication
The PowerShares FTSE Emerging Markets High Dividend Low Volatility UCITS ETF is designed to deliver investment returns which, before expenses, correspond to the price and yield performance of the FTSE Emerging High Dividend Low Volatility Net Total Return Index2 (a dual-factor index) in US dollar terms by holding, as far as practicable, all of the Index’s constituents in their respective weighting.
- ISIN: IE00BYYXBF44
- SEDOL: BYZQD67 (US$ trading line) / BYZQD90 (GBP trading line)
- Investment method: Physical index replication
- Replication method: Full replication
Bryon Lake, Head of Invesco PowerShares - EMEA, says: “These new ETFs complement our existing High Dividend Low Volatility range and, collectively, provide a suite of products seeking to help in the search for yield in the UK and emerging markets, while operating in an uncertain equity environment. Dividend strategies and low volatility strategies are two of the most popular factors, both according to Invesco’s European Investor Research3 and recent asset flows4. By combining the high dividend and low volatility screens, we are seeking to present the best of both factors for UK and emerging markets equity exposure.”
Invesco PowerShares is a leading global provider of exchange-traded funds (ETFs), part of Invesco Ltd, and was the first-to-market with Smart Beta ETFs. Since 2003 in the US and 2007 in Europe, Invesco PowerShares has been offering a selection of ETFs that track “next generation” indices, indices that go beyond merely tracking a particular market.
 The FTSE UK High Dividend Low Volatility Index measures the performance of the 50 least-volatile high dividend-yielding stocks in the FTSE 350 ex-Investment Trusts Index, while meeting diversification, volatility and tradability requirements - thus achieving a balance between dividend yield and volatility.
All FTSE 350 ex-Investment Trusts Index constituents are ranked in descending order of trailing 12 months dividend yields, and the top 75 stocks are selected. Of these, the 50 companies with the lowest volatility are selected to form the benchmark. The weight of each constituent is capped, such that the maximum individual company weight does not exceed 3% and the maximum ICB industry weight does not exceed 25%.
 The FTSE Emerging High Dividend Low Volatility Index measures the performance of the 100 least-volatile high dividend-yielding stocks in the FTSE Emerging Index, while meeting diversification, volatility and tradability requirements - thus achieving a balance between dividend yield and volatility.
All FTSE Emerging Index constituents are ranked in descending order of trailing 12 months dividend yields, and the top 150 stocks are selected. Of these, the 100 companies with the lowest volatility are selected to form the benchmark. The weight of each constituent is capped, such that the maximum individual company weight does not exceed 3% and the maximum ICB industry weight does not exceed 25%.
 European Investor Research: The Emergence of a New Era in Index Investing (November 2015)
 Morningstar figures, as at end of March 2016.
This communication is directed at Professional Clients only and is not for consumer use.
The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.
As the PowerShares FTSE Emerging Markets High Dividend Low Volatility UCITS ETF is an emerging markets ETF, investors should be prepared to accept a higher degree of risk than for an ETF investing in the securities of issuers in other more established or developed countries, as difficulties in dealing, settlement and custody could arise.
In tracking the Index, the PowerShares FTSE UK High Dividend Low Volatility UCITS ETF will be concentrated in a single country or a small number of countries. Investors should be prepared to accept
a higher degree of risk than for a fund that is geographically diversified.
Where Invesco PowerShares has expressed views and opinions, these may change without notice.
Any investment in an ETF should be made on the basis of the relevant Prospectus and Key Investor Information Documents, including consideration of the investment objective, risks, charges and expenses. Further information on the ETFs, including the Prospectus, Key Investor Information Documents and Supplements available at www.powershares.co.uk, from your financial adviser or broker.
This communication is intended for information purposes in regard to the existence and potential benefits of investing in ETFs. However, it is not intended to provide specific investment advice including, without limitation, investment, financial, legal, accounting or tax advice, or to make any recommendations about the suitability of the ETF for the circumstances of any particular investor. You should take appropriate advice as to any securities, taxation or other legislation affecting you prior to investment.
Whilst an ETF will seek to track an Index, Invesco PowerShares does not guarantee that this will occur.
When making an investment in an ETF you are buying shares in a company that is listed on a stock exchange.
It is expected that shares in the ETFs will trade closely to their NAV, and because of the exchange-traded fund structure, it is expected that a significant discount or premium of price to asset value will not be sustainable over the long term. However, supply and demand in the shares on the relevant exchange together with any disruptions to creations and redemptions of units in the underlying fund may result in share prices that differ significantly from the NAVs and there can be no certainty that there will be liquidity in the shares on any exchange. Only Authorised Participants, as defined in the Prospectus of the ETF, can request the Manager to create and redeem units in the underlying fund.
The distribution and the offering of ETFs in certain jurisdictions may be restricted by law. Persons into whose possession this document may come are required to inform themselves about and to comply with any relevant restrictions. The ETFs are only available in jurisdictions where their promotion and sale is permitted. This does not constitute an offer or solicitation by anyone in any jurisdiction in which such an offer is not authorised or to any person to who it is unlawful to make such an offer or solicitation.
Persons interested in acquiring ETFs should inform themselves as to (i) the legal requirements in the countries of their nationality, residence, ordinary residence or domicile: (ii) any foreign exchange controls: and (iii) tax consequences which might be relevant.
Further information on the ETFs, including the Prospectus, Key Investor Information Document and Supplements are available from your usual Invesco contact using the contact details below.
All rights in the FTSE UK High Dividend Low Volatility Index and the FTSE Emerging High Dividend Low Volatility Index (the “Indices”) vest in FTSE International Limited (“FTSE”). “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE under licence. The PowerShares FTSE UK High Dividend Low Volatility UCITS ETF and the PowerShares FTSE Emerging Markets High Dividend Low Volatility UCITS ETF (the "Funds") hasve been developed solely by Invesco PowerShares. The Indices are calculated by FTSE or its agent. FTSE and its licensors are not connected to and do not sponsor, advise, recommend, endorse or promote the Fund and do not accept any liability whatsoever to any person arising out of (a) the use of, reliance on or any error in the Indices or (b) investment in or operation of the Funds. FTSE makes no claim, prediction, warranty or representation either as to the results to be obtained from the Funds or the suitability of the Index for the purpose to which it is being put by Invesco PowerShares .
Issued and distributed in the UK, on behalf of Invesco PowerShares, by Invesco Asset Management Limited. Perpetual Park, Perpetual Park Drive, Henley-on-Thames, Oxfordshire RG9 1HH, UK. Authorised and regulated by the Financial Conduct Authority.