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PowerShares Receives Regulatory Relief for SEC Limits on All Exchange-Traded Funds
| Source: PowerShares Capital Management
CHICAGO, IL--(Marketwire - August 30, 2007) - PowerShares Capital Management LLC continues
Leading the Intelligent ETF Revolution®, announcing today that all of its
exchange-traded funds (ETFs) have received regulatory relief permitting
other investment companies to invest in PowerShares' ETFs in excess of the
limits prescribed by Section 12d-1 of the Investment Company Act of 1940.
The relief granted to PowerShares also applies to all future ETF products
launched by PowerShares.
Under Section 12d-1 of the Investment Company Act of 1940, investment
companies are prohibited from acquiring more than 3 percent of the total
outstanding voting stock of another investment company, investing more than
5 percent of their total assets in a single investment company, or
investing more than 10 percent of their total assets in two or more
investment companies.
"We are very pleased with the increased flexibility and investment
opportunities that this order creates for the PowerShares family of ETFs,"
said Bruce Bond, President of PowerShares Capital Management. "The
regulatory relief order is another step in our continued integration with
INVESCO PLC, and allows PowerShares' ETFs to utilize INVESCO's global
distribution capabilities -- including AIM Investments® in the U.S. --
offering investors the best of both worlds."
As part of the relief, investment companies must agree to certain terms and
conditions before investing in the PowerShares ETFs above the statutory
limits, including but not limited to the following: entering into a
participation agreement, not exercising undue influence over the
PowerShares ETFs, and complying with the investment company's own
investment restrictions and investment policies. A participation agreement
can be obtained by emailing 12d-1request@powershares.com.
PowerShares Capital Management LLC is leading the intelligent ETF
revolution through its family of more than 90 PowerShares XTF™ 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. Go to
http://www.powershares.com/products to see a complete list of PowerShares
products. PowerShares XTF are based on the Intellidex™ methodology,
which applies rules-based quantitative analysis to select portfolios of
securities that have the greatest investment merit and the highest
potential for capital appreciation while controlling individual stock risk.
With franchise assets of nearly $35 billion, PowerShares XTF 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 $499 billion in assets under management as
of July 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
Exchange-traded funds are made up of publicly traded securities that can
and will move higher and lower with market movements. You should anticipate
that the value of the shares of each fund will advance or decline more or
less in correlation with the advance or decline in value of the applicable
index. The Funds are not actively managed, and shares of the Funds may
trade at or below the Funds' NAV. Exchange-traded funds are subject to
risks similar to those of stocks, including risks associated with
short-selling and margin account maintenance. Ordinary brokerage
commissions apply.
A I M Distributors, Inc. is the distributor of the PowerShares
Exchange-Traded Fund Trust.
An investor should consider the Fund's investment objectives, risks,
charges and expenses carefully before investing. For this and more complete
information about the Fund, call 800.983.0903 or visit the website
www.powershares.com for a prospectus. Please read the prospectus carefully
before investing.
PowerShares® and Leading the Intelligent ETF Revolution® are registered
marks of PowerShares Capital Management LLC.