Invesco announces changes to three ETFs, one mutual fund

first_imgIE Staff Toronto-based Invesco Canada Ltd. Monday announced changes to the investment strategy of PowerShares Canadian Preferred Share Index Class and PowerShares Canadian Preferred Share Index ETF (PPS). In 2013, The Nasdaq OMX Group, Inc. acquired the index business of Mergent, Inc., including Indxis, which created and maintained the underlying index for both PowerShares Canadian Preferred Share Index Class and PPS. Facebook LinkedIn Twitter Following the acquisition, Nasdaq reviewed its indices, and has announced enhancements to its Nasdaq Select Canadian Preferred Share Index, which is the underlying index of both PPS and PowerShares Canadian Preferred Share Index Class. “We are updating the methodology with a focus on index size and selection, and believe the resulting index with high-yield and low-volatility screens will serve as a better benchmark for the Canadian market,” said Dave Gedeon, managing director, Nasdaq OMX Global Indexes, in a release. The previous index methodology had applied liquidity and market-capitalization screens to narrow the investible universe, from which the 50 most liquid securities were selected for index inclusion. Effective Thursday, May 1, the index will include 100 securities, with selection based on the highest combined weight of high yield and low volatility. The new methodology maintains the liquidity screen and continues to weight by market capitalization. Lower management fee on PXU Invesco Canada also announced that it has reduced the management fee on PowerShares FTSE RAFI U.S. Fundamental (CAD Hedged) Index ETF (PXU). Effective March 28, the management fee will be reduced from 60 basis points (bps) to 55 bps. The effective management fee for PXU has been 55 bps since its inception on Jan. 26, 2012, when an ongoing discretionary waiver of five bps was implemented. To provide investors with more clarity, that waiver has been cancelled and the fee reduced permanently. New name for PGL In a related announcement, Invesco Canada will rename PowerShares Ultra DLUX Long Term Government Bond Index ETF (PGL) as PowerShares Ultra Liquid Long Term Government Bond Index ETF (PGL) effective April 15,=. The name change reflects the new name of its underlying index; however, the index methodology is unchanged. The DEX Ultra DLUX Long Government Bond Index was renamed FTSE TMX Canada Ultra Liquid Long Term Government Bond Index. That name change resulted from the merger of the fixed-income index businesses of TMX Datalinx and FTSE Group. Share this article and your comments with peers on social medialast_img read more