Transcript of BKL PowerShares Senior Loan (CAD Hedged) Index ETF The PowerShares Senior Loan (CAD Hedged) Index...
- Slide 1
- BKL PowerShares Senior Loan (CAD Hedged) Index ETF The
PowerShares Senior Loan (CAD Hedged) Index ETF (BKL) seeks to
replicate, before fees and expenses, the performance of the
S&P/LSTA (Loan Syndications and Trading Association) U.S.
Leveraged Loan 100 Index (CAD Hedged). The index gives investors
exposure to the largest 100 loan facilities drawn from a larger
benchmark the S&P/LSTA Leveraged Loan Index. Why invest in this
ETF? Potential for enhanced yield Reduced interest-rate sensitivity
compared to investments with fixed-coupon payments Priority of
repayment and protection Low correlation to traditional bonds 1
Source: S&P Dow Jones Indices. 1 This is the weighted average
yield of the index as at March 31, 2013 and is not indicative of
the yield an investor could expect to earn on an ETF that seeks to
replicate the performance of the index. Yields will vary over time.
Fund information Ticker BKL Listing date April 16, 2012
Distribution frequency Monthly Management fee 0.90% Index
characteristics S&P/LSTA U.S. Leveraged Loan 100 Index (CAD
Hedged) Rebalancing frequencySemi-annually Index Yield To Maturity
1 5.69%
- Slide 2
- Defending portfolios against financial repression Senior loans
during different interest rate environments 2 Source: Bloomberg
L.P., March 28, 2013. You cannot invest directly in an index. Index
performance does not reflect fees and expenses that would apply to
a fund. Chart illustrates the average 1-year return (measured on a
monthly basis) of the indices when interest rates have increased or
decreased, as measured by the yield on the 5-Year U.S. Treasury
Securities. Change in interest rates: Dec. 31, 1998 Mar. 28,
2013
- Slide 3
- Defending portfolios against financial repression Senior loans:
asset class characteristics 3 Senior loans U.S. high-yield bonds
Coupon typeFloatingFixed SecuritySecuredMostly unsecured Yield 1
5.69%6.46% Average price 1 $98.33$105.18 Historical average default
rate 2 2.56%3.55% Historical recovery rate 3 77.9%28.5% 5-yr.
Standard Deviation 1 11.83%13.90% Senior loans are represented by
the S&P/LSTA U.S. Leveraged Loan 100 Index. U.S. high-yield
bonds are represented by the BofA Merrill Lynch US High Yield
Master II Index. You cannot invest directly in an index. 1 Source:
Bloomberg LP, S&P Dow Jones Indices, Zephyr StyleADVISOR as at
Mar 31, 2013 2 Source: Bloomberg LP, S&P Dow Jones Indices as
at December 31, 2012. Historical average default rate is based on
the average of the number of annual defaults in a calendar year for
1992 2012. 3 Source: S&P Dow Jones Indices for period January
1, 1987 June 2012.
- Slide 4
- Important information Commissions, management fees and expenses
may all be associated with investments in exchange-traded funds
(ETFs). ETFs are not guaranteed, their values change frequently and
past performance may not be repeated. Please read the prospectus
before investing. Copies are available from Invesco Canada Ltd. at
www.powershares.ca. There are risks involved with investing in
ETFs. Please read the prospectus for a complete description of
risks relevant to the ETF. Ordinary brokerage commissions apply to
purchases and sales of ETF units. Most PowerShares ETFs seek to
replicate, before fees and expenses, the performance of the
applicable Index, and are not actively managed. This means that the
Sub-advisor will not attempt to take defensive positions in
declining markets and the ETF will continue to provide exposure to
each of the securities in the Index regardless of whether the
financial condition of one or more issuers of securities in the
Index deteriorates. In contrast, if a PowerShares ETF is actively
managed, then the Sub-advisor has discretion to adjust that
PowerShares ETFs holdings in accordance with the ETFs investment
objectives and strategies. Standard & Poors and S&P are
registered trademarks of Standard & Poors Financial Services
LLC (S&P) and have been licensed for use by S&P Dow Jones
Indices LLC and sublicensed for certain purposes by Invesco Canada
Ltd. TSX is a registered trademark of TSX Inc. and LSTA is a
registered trademark of Loan Syndications and Trading Association
and both have been licensed for use by S&P Dow Jones Indices
LLC and Invesco Canada Ltd. The S&P/TSX Composite Low
Volatility Index, S&P/TSX Composite High Beta Index, S&P
500 Low Volatility Index (CAD Hedged), S&P 500 High Beta Index
(CAD Hedged) and S&P/LSTA U.S. Leveraged Loan 100 Index (CAD
Hedged) are products of S&P Dow Jones Indices LLC, and have
been licensed for use by Invesco Canada Ltd. Invesco Canada Ltd's
PowerShares S&P/TSX Composite Low Volatility Index ETF,
PowerShares S&P/TSX Composite High Beta Index ETF, PowerShares
S&P 500 Low Volatility (CAD Hedged) Index ETF, PowerShares
S&P 500 High Beta (CAD Hedged) Index ETF and PowerShares Senior
Loan (CAD Hedged) Index ETF are not sponsored, endorsed, sold or
promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P,
their respective affiliates, or third party licensors and neither
S&P Dow Jones Indices LLC, Dow Jones, S&P, their respective
affiliates nor their third party licensors make any representation
regarding the advisability of investing in such products. This
piece was produced by Invesco Canada Ltd. ETFs are not diversified
investments. Invesco and all associated trademarks are trademarks
of Invesco Holding Company Limited, used under licence. PowerShares
, Leading the Intelligent ETF Revolution and all associated
trademarks are trademarks of Invesco PowerShares Capital
Management, LLC (Invesco PowerShares), used under licence.
Published April 19, 2013 Invesco Canada Ltd., 2013 4