Invesco PowerShares lists first-to-market in Europe share buyback ETF

 On 28 October 2014, Invesco PowerShares listed a new ETF on the London Stock Exchange, expanding its LSE-listed range to 16 ETFs and providing further diversification opportunities across global developed equity markets.

The PowerShares Global Buyback Achievers UCITS ETF aims to provide investors with investment results which, before expenses, correspond to the price and yield performance of the NASDAQ Global Buyback Achievers Net Total Return Index in US dollar terms by replicating all of the constituents of the Index.

ISIN: IE00BLSNMW37

SEDOL: BM4NQQ6 (GBp trading line) / BLZHC17 (US$ trading line)

Investment method: Physical index replication

Replication method: Full replication

Capturing shareholder value – the stock buyback way

According to S&P Dow Jones Indices, for the 12 months ending June 2014, S&P 500 issuers increased their buyback expenditures by 26.6% to US$533.0 billion from the US$420.9 billion posted during the corresponding twelve month period ending 2013(1).

The level of share buy backs during the trailing twelve month period has only been exceeded once when during the 2007 fiscal year, a total of U$589.1 billion shares were bought back by S&P 500 members(1).

With research indicating that Buyback programs are a growing global phenomenon(2), numerous firms are now acquiring their own stock at a faster pace than ever; as an example, Japanese businesses have acquired US$25 billion of purchases so far this year(3).

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1 Source: S&P Dow Jones Indices, 23rd September 2014.

2 Source: Deutsche Bank, "Share Buybacks: Is It Worth It?" - March 2014

3 Source: Bloomberg, 23 July 2014

 

Important information

This communication is directed at Professional Clients only and is not for consumer use.

The price of ETFs 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.

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.net, from your financial adviser or broker.

This document 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.

This document 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.

Index provider

NASDAQ, OMX™ and the NASDAQ Global Buyback Achievers IndexSM are trade/service marks of The NASDAQ OMX Group, Inc. (which with its affiliates is referred to as the "Corporations") and are licensed for use by PowerShares. The Product(s) have not been passed on by the Corporations as to their legality or suitability. The Product(s) are not issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT(S).

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