-- PLW - PowerShares 1-30 Laddered Treasury Portfolio
-- PWZ - PowerShares Insured California Municipal Bond Portfolio
-- PZT - PowerShares Insured New York Municipal Bond Portfolio
The previously-announced PowerShares fixed-income ETFs also listing on Oct.
11 include:
-- PZA - PowerShares Insured National Municipal Bond Portfolio
-- PCY - PowerShares Emerging Markets Sovereign Debt Portfolio
"I am pleased to announce these new portfolios, which provide investors new
ways to access fixed-income securities, coupled with the benefits inherent
to the ETF structure," said Bruce Bond, president and CEO of PowerShares.
"The PowerShares 1-30 Laddered Treasury Portfolio will allow investors to
implement a sophisticated bond-laddering strategy in the convenient form of
a single ETF trade, and our New York and California insured portfolios will
enable investors to leverage two of the most active municipal bond markets
in the nation."
Fixed income is an area of ongoing attention for PowerShares, Bond says,
and the firm plans to expand its capabilities here in Q4 and into 2008.
Product information on PowerShares' five new fixed-income ETF portfolios
follows:
The PowerShares 1-30 Laddered Treasury Portfolio is based on the
Ryan/Mergent 1-30 Year Treasury Laddered Index, which measures the
potential returns of the U.S. Treasury yield curve based on approximately
30 equally-weighted U.S. Treasury issues with fixed coupons, scheduled to
mature in a proportional, annual laddered structure. The 1-30 Laddered
Treasury Portfolio will generally consist of 30 Treasury issues with
maturities approximately one year apart, and seeks to replicate the
composition and match performance of this index, before fees and expenses.
All U.S. Treasury securities are issued by and backed by the U.S.
Government. The PowerShares 1-30 Treasury Ladder Portfolio participates
only in U.S. Treasuries that have a fixed maturity dates, and no call
provisions.
The PowerShares Insured California Municipal Bond Portfolio is based on the
Merrill Lynch California Insured Long-Term Core Municipal Securities Index(SM). The Index is designed to track the performance of AAA-rated, insured
tax-exempt long-term debt publicly issued by California or Puerto Rico or
their political subdivisions, excluding housing bonds, tobacco bonds, zero
coupon and AMT bonds.
The PowerShares Insured New York Municipal Bond Portfolio is based on the
Merrill Lynch New York Insured Long-Term Core Municipal Securities Index(SM). The Index is designed to track the performance of AAA-rated, insured
tax-exempt long-term debt publicly issued by New York or Puerto Rico or
their political subdivisions, excluding housing bonds, tobacco bonds, zero
coupon and AMT bonds.
The PowerShares Insured National Municipal Bond Portfolio is based on the
Merrill Lynch National Insured Long-Term Core Municipal Securities Index(SM). The Index is designed to track the performance of AAA-rated, insured
tax-exempt long-term debt publicly issued by U.S. states or their political
subdivisions, excluding housing bonds, tobacco bonds, zero coupon and all
bonds subject to Alternative Minimum Tax (AMT).
The PowerShares Emerging Markets Sovereign Debt Portfolio is the first ETF
to offer investors diversified access to the sovereign debt of emerging
market countries. The Fund seeks to track the DB Emerging Market U.S.
Dollar Balanced Liquid Index, an innovative index developed by Deutsche
Bank Securities Inc. (DB).
PowerShares Capital Management LLC is leading the intelligent ETF
revolution through its family of more than 90 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 of nearly
$35 billion, PowerShares ETFs trade on all three U.S. stock exchanges and
the PowerShares QQQ™, which tracks 100 of the NASDAQ's fastest-growing
companies, is the most actively traded equity security in the world. For
more information, please visit us at www.powershares.com.
PowerShares is a part of INVESCO PLC, a leading independent global
investment manager dedicated to helping people worldwide build their
financial security. Operating under the AIM, AIM Trimark, Atlantic Trust,
Invesco Perpetual, PowerShares and WL Ross & Co. brands, INVESCO PLC
strives to deliver outstanding products and services through a
comprehensive array of enduring investment solutions for its retail,
institutional and private wealth management clients around the world. The
company, which had approximately $492 billion in assets under management as
of Aug. 31, 2007, is listed on the London, New York and Toronto stock
exchanges with the symbol "IVZ." Additional information is available at
www.invesco.com.
Risks of Owning Exchange-Traded Funds
There are risks involved with investing in ETFs including possible loss of
money. Shares are subject to risks similar to those of investing in any
fund of emerging market sovereign debt securities, municipal fixed income
securities and treasury bond securities, including credit, interest rate
and general market risks, as well as those risks related to short selling
and margin maintenance. Generally, the prices of income securities tend to
fall as interest rates rise. The Shares are subject to market fluctuations
caused by such factors as economic, political, regulatory or market
developments, changes in interest rates and perceived trends in securities
prices. Please see the prospectus for more complete information regarding
an investment in the Funds. Shares are not FDIC insured, may lose value and
have no bank guarantee.
The value of an individual security or particular type of security can be
more volatile than the market as a whole and can perform differently from
the value of the market as a whole.
PowerShares 1-30 Treasury Ladder Portfolio
There is no guarantee that the Fund's income will be exempt from federal or
state income taxes.
Mergent® is a registered trademark of Mergent, Inc. and Ryan is a trade
name of Ryan Holdings, LLC and each have been licensed for use by
PowerShares Capital Management LLC. Mergent, Inc., ALM Research Solutions,
LLC and Ryan Holdings, LLC, collectively are the Index Provider for the
PowerShares 1-30 Laddered Treasury Portfolio and this Product is not
sponsored, endorsed, sold or promoted by Mergent, ALM or Ryan. Mergent, ALM
and Ryan make no representation or warranty, express or implied, to the
shareholders of this Product or any member of the public regarding the
advisability of investing in securities generally or in the Underlying
Index particularly or the ability of any data supplied by Mergent, ALM or
Ryan to track general stock market performance. Mergent, ALM and Ryan's
only relationship to this sponsor is the licensing of certain trademarks
and trade names of Mergent, ALM or Ryan, and of the data supplied by
Mergent, ALM or Ryan which is determined, composed and calculated by
Mergent, ALM or Ryan without regard to this Product or its common shares.
Mergent, ALM and Ryan has no obligation to take the needs of PowerShares or
the shareholders of the Product into consideration in determining,
composing or calculating the data supplied by Mergent, ALM or Ryan.
Mergent, ALM and Ryan are not responsible for and have not participated in
the determination of the prices of the shares of the Product or the timing
of the issuance or sale of such shares. Mergent, ALM or Ryan have no
obligation or liability in connection with the administration, marketing or
trading of this Product or its common shares. The PowerShares 1-30 Laddered
Treasury Portfolio is entitled to use its respective Underlying Index
pursuant to a sub-licensing agreement with the Adviser.
PowerShares Municipal Bond Portfolios
There is no guarantee that the Fund's income will be exempt from federal or
state income taxes.
Municipal securities are subject to risks including, but not limited to
risks associated with litigation, legislation, changes in taxation, or
other political events, local business or economic conditions, bankruptcy
of the issuer or other circumstances that could have a significant effect
on an issuer's ability to make payments of principal and/or interest. In
addition, changes in the financial condition of an individual municipal
insurer or conditions of the market in which the project was financed can
affect the overall municipal market.
A substantial portion of the municipal securities held by the PowerShares
Insured National Municipal Bond Fund will be covered by insurance that
guarantees the bond's scheduled payment of interest and repayment of
principal. Municipal security insurance does not insure against market
fluctuations or fluctuations in the Fund's share price. In addition, a
municipal security insurance policy will not cover: (i) repayment of a
municipal security before maturity (redemption), (ii) prepayment or payment
of an acceleration premium (except for a mandatory sinking fund redemption)
or any other provision of a bond indenture that advances the maturity of
the bond or (iii) nonpayment of principal or interest caused by negligence
or bankruptcy of the paying agent.
"Merrill Lynch" and "Merrill Lynch National Long-Term Core Municipal
Securities Index(SM)", "Merrill Lynch National Insured Long-Term Core
Municipal Securities Index(SM)", "Merrill Lynch California Insured Long-Term
Core Municipal Securities Index(SM)," and "Merrill Lynch New York Insured
Long-Term Core Municipal Securities Index(SM)," are reprinted with permission.
© Copyright 2007 Merrill Lynch, Pierce, Fenner & Smith Incorporated. All
rights reserved. "Merrill Lynch" and "Merrill Lynch National Long-Term Core
Municipal Securities Index(SM)," "Merrill Lynch National Insured Long-Term
Core Municipal Securities Index(SM)", "Merrill Lynch California Insured Long-Term Core Municipal Securities Index(SM)", and "Merrill Lynch New York
Insured Long-Term Core Municipal Securities Index(SM)" are service marks of
Merrill Lynch and have been licensed for use for certain purposes by
PowerShares Capital Management LLC. The PowerShares National Municipal Bond
Portfolio, PowerShares Insured National Municipal Bond Portfolio,
PowerShares Insured California Municipal Bond Portfolio , and PowerShares
Insured New York Municipal Bond Portfolio are based on the Merrill Lynch
National
Long-Term Core Municipal Securities Index(SM), Merrill Lynch National Insured
Long-Term Core Municipal Securities Index(SM), Merrill Lynch California
Insured Long-Term Core Municipal Securities Index(SM), and Merrill Lynch New
York Insured
Long-Term Core Municipal Securities Index(SM), respectively, and are not
sponsored, endorsed, sold or promoted by Merrill Lynch. Merrill Lynch, as
Index Provider, makes no representation, express or implied, regarding the
advisability of investing in this product or the Index and does not
guarantee the quality, accuracy or completeness of the Index or any Index
related data included herein or derived there from and assumes no liability
in connection with their use. As the Index Provider, Merrill Lynch is
licensing certain trademarks, the underlying Index and trade names which
are composed by Merrill Lynch without regard to PowerShares, the Issuer,
this product or any investor.
PowerShares Emerging Markets Sovereign Debt Portfolio
Investments in sovereign debt securities involve special risks. The
governmental authority that controls the repayment of the debt may be
unwilling or unable to repay the principal and/or interest when due in
accordance with the terms of such securities due to: the extent of its
foreign reserves; the availability of sufficient foreign exchange on the
date a payment is due; the relative size of the debt service burden to the
economy as a whole; or the government debtor's policy towards the
International Monetary Fund and the political constraints to which a
government debtor may be subject. If an issuer of sovereign debt defaults
on payments of principal and/or interest, the Fund may have limited legal
recourse against the issuer and/or guarantor. In certain cases, remedies
must be pursued in the courts of the defaulting party itself, and the
Fund's ability to obtain recourse may be limited. Government obligors in
emerging market countries are among the world's largest debtors to
commercial banks, other governments, international financial organizations
and other financial institutions. Historically, certain issuers of the
government debt securities in which the Fund may invest have experienced
substantial difficulties in meeting their external debt obligations,
resulting in defaults on certain obligations and the restructuring of
certain indebtedness. Such restructuring arrangements have included
obtaining additional credit to finance outstanding obligation and the
reduction and rescheduling of payments of interest and principal through
the negotiation of new or amended credit agreements. Please see the
prospectus for more complete information regarding the risks of investing
in emerging markets and sovereign debt.
Deutsche Bank Securities Inc. is the Index Provider for the PowerShares
Emerging Markets Sovereign Debt Portfolio. DB is not affiliated with the
Trust, the Adviser or the Distributor. The Adviser has entered into a
license agreement with the Index Provider to use the Deutsche Bank Emerging
Market U.S. Dollar Balanced Liquid Index. The PowerShares Emerging Markets
Sovereign Debt Portfolio is entitled to use the Deutsche Bank Emerging
Market U.S. Dollar Balanced Liquid Index pursuant to a sub-licensing
arrangement with the Adviser.
A I M Distributors, Inc. is the distributor of the PowerShares Global
Exchange-Traded Fund
Trust II.
An investor should consider the Fund's investment objectives, risks,
charges and expenses carefully before investing. For a copy of the
prospectus which contains this and other information about the Funds, call
800.983.0903. Please read the prospectus carefully before investing.
The information in the prospectus is not complete and may be changed. The
Funds may not sell their Shares until the registration statement filed with
the Securities and Exchange Commission is effective. The prospectus is not
an offer to sell the portfolios' Shares, nor are the portfolios soliciting
an offer to buy their Shares in any jurisdiction where the offer or sale is
not permitted.
PowerShares® and Leading the Intelligent ETF Revolution® are registered
marks of PowerShares Capital Management LLC. A I M Distributors, Inc. is
the distributor of the PowerShares Exchange-Traded Fund Trust and the
PowerShares Exchange-Traded Fund Trust II. ALPS Distributors, Inc. is the
distributor of PowerShares QQQ. PowerShares QQQ is a unit investment trust.
PowerShares Capital Management LLC and A I M Distributors, Inc. are not
affiliated with ALPS Distributors, Inc.
Contact Information: Media Contacts: Kristin Sadlon Porter Novelli 212-601-8192 Bill Conboy 303-415-2290