CHICAGO, IL--(Marketwire - January 10, 2011) - Invesco PowerShares Capital Management LLC, a leading provider of exchange-traded funds (ETFs) with more than $54 billion in franchise assets, today announced the five-year anniversary of the PowerShares FTSE RAFI US 1000 Portfolio (
The PowerShares FTSE RAFI US 1000 was the first retail investment product to provide investors access to the passive Research Affiliates® Fundamental Index (RAFI®) methodology. This award-winning index methodology uses four fundamental measures of company size: book value, cash flow, sales and dividends, to select and weight index constituents. By using four fundamental factors rather than one, the RAFI methodology is thought to be a more robust means of capturing a company's true economic footprint.
Since inception, the PowerShares FTSE RAFI US 1000 Portfolio has outperformed its market-cap-weighted benchmarks, the Russell 1000 and S&P 500 indexes. For the five-year period ending Dec. 31, 2010, PRF achieved a cumulative total return of 23.10% based on NAV, significantly outperforming the S&P 500 Index which had a total return of 11.99%. The Russell 1000 Index gained 13.81%, and the Russell 1000 Value Index had a cumulative total return of 6.68% over the same five-year period. (Source: Bloomberg)
"We are very pleased to celebrate this five-year milestone for the PowerShares FTSE RAFI US 1000 Portfolio, which has delivered on its goal of providing investors improved risk-adjusted returns compared to cap-weighted benchmarks," said Ben Fulton, Invesco PowerShares managing director of global ETFs. "Invesco PowerShares currently offers six equity ETFs based on the FTSE RAFI Fundamental Index methodology and each one is ranked in the top third of their Lipper categories.* We believe the PowerShares ETFs based on this methodology represent an important alternative to cap-weighted portfolios. We look forward to working with Research Affiliates to continue to expand this important product suite."
| Name | Ticker | Inception Date | Lipper Classification | Annualized Performance | Since Inception Lipper Rank | ||||
| PowerShares FTSE RAFI US 1000 | PRF | 12/19/05 | Large-Cap Core | 4.05% | 10% | ||||
| Russell 1000 Index | 2.46% | (72 of 769) | |||||||
| PowerShares FTSE RAFI US 1500 Small-Mid | PRFZ | 9/20/06 | Small-Cap Core | 6.77% | 12% | ||||
| Russell 2000 Index | 2.94% | (73 of 616) | |||||||
| PowerShares FTSE RAFI Emerging Markets | PXH | 9/27/07 | Emerging Markets | 1.57% | 20% | ||||
| MSCI Emerging Markets Index | 0.85% | (52 of 260) | |||||||
| PowerShares FTSE RAFI Dev Mkts ex-US | PXF | 6/25/07 | International Large-Cap Core | -4.43% | 26% | ||||
| MSCI EAFE Index | -5.72% | (81 of 311) | |||||||
| PowerShares FTSE RAFI Dev Mkts ex-US S/M | PDN | 9/27/07 | International S/M-Cap Core | 0.95% | 3% | ||||
| MSCI EAFE Small Cap Index | N/A | (1 of 47) | |||||||
| PowerShares FTSE RAFI Asia Pacific ex-Jp | PAF | 6/25/07 | Pacific Ex Japan | 6.49% | 23% | ||||
| MSCI Pacific ex-Japan Index | 2.90% | (8 of 35) |
Sources: Bloomberg and Lipper, as of Dec. 31, 2010. Annualized fund and index performance is since each fund's inception date. *Since Inception Lipper Rank begins the month-end date of the ETF's inception month. Lipper fund percentile rankings are based on total returns, excluding sales charges and including fees and expenses, and are versus all funds in the category tracked by Lipper. Past performance does not guarantee future results. An investor cannot invest directly in an index.
"To those who think that RAFI is just a value concept, it bears mention that value has generally underperformed growth during the past five years," said Rob Arnott, chairman and founder of Research Affiliates, LLC. "The alpha generated by the Fundamental Index approach -- roughly 2% per year in markets that were adverse to value strategies -- offers further evidence that this is far more than a simple value tilt. Rather, the main source of added value comes from contra-trading against the fads, bubbles, crashes and shifting expectations in the market -- selling the most popular and trendy stocks while buying the feared and loathed companies."
| Exp. Ratio | Annualized Returns (%) | |||||||||||||||||||||||
| PowerShares FTSE RAFI Portfolio | NAV | After Tax Held | After Tax Sold | Share Price | ||||||||||||||||||||
| 1 Yr | 5 Yr | Incept. | 1 Yr | 5 Yr | Incept. | 1 Yr | 5 Yr | Incept. | 1 Yr | 5 Yr | Incept. | |||||||||||||
| US 1000 | 0.39%* | 19.51 | 4.23 | 4.06 | 18.87 | 3.64 | 3.47 | 12.65 | 3.26 | 3.12 | 19.74 | 4.29 | 4.15 | |||||||||||
| US 1500 Small-Mid | 0.39%* | 29.04 | 6.77 | 28.70 | 6.44 | 18.86 | 5.62 | 29.52 | 6.81 | |||||||||||||||
| Emerging Markets | 0.85% | 13.09 | 1.58 | 12.65 | 1.05 | 8.49 | 1.00 | 13.37 | 1.14 | |||||||||||||||
| Developed Markets ex-U.S. | 0.75% | 6.29 | -4.43 | 5.33 | -5.15 | 4.06 | -4.15 | 7.59 | -4.21 | |||||||||||||||
| Developed Markets ex-U.S. S/M | 0.75% | 18.26 | 0.95 | 17.47 | 0.19 | 11.84 | 0.34 | 19.83 | 1.07 | |||||||||||||||
| Asia Pacific ex-Japan | 0.80% | 19.35 | 6.50 | 18.41 | 5.14 | 12.52 | 4.70 | 21.64 | 6.97 | |||||||||||||||
Performance data quoted represents past performance. As stated in each Fund's prospectus, expense ratios are expressed as a unitary fee to cover expenses incurred in connection with managing the portfolios. *The PowerShares FTSE RAFI US 1000 and US 1500 Small-Mid Portfolios have gross expense ratios of 0.45% and 0.51%, respectively. However, the Adviser has contractually agreed to waive fees and/or pay certain Fund expenses which resulted in the total net operating expense of 0.39% for each fund. These waivers and reimbursement contracts extend through at least Aug. 30, 2011. Past performance is not a guarantee of future results; current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and Shares, when redeemed, may be worth more or less than their original cost. The Shares' performance reflects fee waivers, absent which performance would have been lower. See invescopowershares.com to find the most recent month-end performance numbers. After Tax Held represents total return after taxes on distributions and assumes Shares have not been sold. After Tax Sold represents total return after taxes on distributions and the sale of Fund Shares. After-tax returns reflect the highest federal income tax rate but exclude state and local taxes. Market returns are based on the midpoint of the bid/ask spread at 4 p.m. ET and do not represent the returns an investor would receive if shares were traded at other times.
The PowerShares FTSE RAFI US 1000 Portfolio is based on the FTSE RAFI US 1000 Index. The Fund will normally invest at least 90% of its total assets in common stocks that comprise the Index. The Index is designed to track the performance of the largest U.S. equities, selected based on the following four fundamental measures of firm size: book value, cash flow, sales and dividends. The 1,000 equities with the highest fundamental strength are weighted by their fundamental scores. The fundamentally weighted portfolio is rebalanced and reconstituted annually.
Research Affiliates won the Global Pensions Award for Investment Strategy Index Provider of the Year for the RAFI methodology in 2009 and 2010.
Invesco PowerShares Capital Management LLC is leading the Intelligent ETF Revolution® through its family of more than 148 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 over $54 billion as of Dec. 31, 2010, PowerShares ETFs trade on both U.S. stock exchanges. For more information, please visit us at www.invescopowershares.com.
Invesco PowerShares is part of Invesco Ltd., a leading independent global investment manager, dedicated to helping investors worldwide achieve their financial objectives. By delivering the combined power of our distinctive investment management capabilities, Invesco provides a wide range of investment strategies and vehicles to our retail, institutional and high net worth clients around the world. Operating in 20 countries, the company is listed on the New York Stock Exchange under the symbol IVZ. Additional information is available at www.invesco.com/us.
There are risks involved with investing in ETFs, including possible loss of money. Shares are not actively managed and are subject to risks similar to those of stocks, including those regarding short selling and margin maintenance requirements. Ordinary brokerage commissions apply.
Foreign Risk Disclosure
Foreign securities have additional risks, including exchange-rate changes, decreased market liquidity, political instability and taxation by foreign governments.
Sector/Industry Disclosure
Investments focused in a particular industry and sectors are subject to greater risk, and are more greatly impacted by market volatility, than more diversified investments.
PRF
Investing in securities of small and medium-sized companies may involve greater risk than is customarily associated with investing in large companies.
PXH
Investment in securities in emerging market countries involves risks not associated with investments in securities in developed countries.
The Fund's use of a representative sampling approach will result in its holding a smaller number of securities than are in the underlying Index, and may be subject to greater volatility.
Investing in securities of medium capitalization companies may involve greater risk than is customarily associated with investing in large companies.
Returns on investments in securities of large U.S. companies could trail the returns on investments in stocks of smaller companies.
The Fund is considered non-diversified and may be subject to greater risks than a diversified fund.
PXF
Investing in securities of medium capitalization companies may involve greater risk than is customarily associated with investing in large companies.
Returns on investments in securities of large U.S. companies could trail the returns on investments in stocks of smaller companies.
PDN
The Fund's use of a representative sampling approach will result in its holding a smaller number of securities than are in the underlying Index, and may be subject to greater volatility.
Investing in securities of small and medium-sized companies may involve greater risk than is customarily associated with investing in large companies.
The Fund is considered non-diversified and may be subject to greater risks than a diversified fund.
PAF
Investment in securities in emerging market countries involves risks not associated with investments in securities in developed countries.
The economies of the countries in the Asia Pacific region are largely intertwined, if an economic recession is experienced by any of these countries, it will likely adversely impact the economic performance of other countries in the region.
Not FDIC Insured | May Lose Value | No Bank Guarantee
Alpha is a measure of performance on a risk-adjusted basis.
PowerShares® is a registered trademark of Invesco PowerShares Capital Management LLC (Invesco PowerShares). Invesco PowerShares Capital Management LLC and Invesco Distributors, Inc. are indirect, wholly owned subsidiaries of Invesco Ltd.
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 50,000 Shares.
Invesco Distributors, Inc. is the distributor of the PowerShares Exchange-Traded Fund Trust and the PowerShares Exchange-Traded Fund Trust II.
The trade names Fundamental Index®, RAFI®, the RAFI logo, and the Research Affiliates corporate name and logo are registered trademarks and are the exclusive property of Research Affiliates, LLC. Fundamental Index® concept, the non-capitalization method for creating and weighting of an index of securities, is the patented and patent-pending proprietary intellectual property of Research Affiliates, LLC.
The S&P 500® Index is an unmanaged index considered representative of the U.S. stock market. The MSCI Emerging Markets Index(SM) is an unmanaged index considered representative of stocks of developing countries. The MSCI EAFE® Index and the MSCI EAFE® Small-Cap Index are unmanaged indexes considered representative of stocks of Europe, Australasia and the Far East. The MSCI AC Asia Pacific Ex-Japan Index is an unmanaged index considered representative of Pacific region stock markets, excluding Japan. The Russell 1000® Index, the Russell 1000® Value Index, the Russell 2000® Index are unmanaged indexes considered representative of large-cap stocks, large-cap value stocks, small-cap stocks, respectively. The Russell 1000 Index is a trademark/service mark of the Frank Russell Co. Russell® is a trademark of the Frank Russell Co.
An investor should consider the Funds' investment objectives, risks, charges and expenses. For this and more complete information about the Funds, call 800 983 0903 or visit invescopowershares.com for a prospectus. Please read the prospectus carefully before investing.
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