Invesco PowerShares has launched four actively managed multi-asset ETFs on Bats ETF MarketPlace, providing exposure to globally-diversified portfolios of equities and bonds. Each ETF is designed to cater to a different risk tolerance profile – from conservative to growth-oriented investors.
Jason Bloom, Global Market Strategist at PowerShares by Invesco.
The ETFs’ underlying investment strategies are based upon models designed by the Invesco Global Solutions Development and Implementation team, which is comprised of eight investment professionals located around the globe with asset allocation specialization. Each portfolio provides, to differing degrees, exposure to US equities, developed international equities, emerging markets equities, Treasury securities, international government bonds, and US and foreign corporate bonds.
The team focuses on evaluating capabilities across Invesco investment centres and vehicles, combining them in a broad range of global, multi-asset products, to meet specific client goals.
“Given the increasingly complex markets and varying risk profiles of our clients, we’re excited to bring Invesco’s broad range of capabilities together in simplified, single ticket solutions,” said Jason Bloom, Global Market Strategist at PowerShares.
Each of the actively managed portfolios is a fund-of-funds, investing in other PowerShares ETFs to gain its required exposures. These exposures include smart beta ETFs, a rules-based investment methodology that uses factor selection and/or an alternative weighting approach in an effort to outperform a benchmark, reduce portfolio risk, or both.
According to Invesco, by combining smart beta’s rules-based exposure with the features of active management, the ETFs provide investors with portfolio strategies that go beyond the limitations of traditional passive investing and benchmark centric active management.
The newly-launched funds are listed below:
The PowerShares Conservative Multi-Asset Allocation Portfolio (Bats: PSMC) seeks total return consistent with a lower level of risk relative to the broad stock market. The fund’s benchmark index is a combination of the MSCI ACWI Index and the Bloomberg Barclays US Aggregate Index in the ratio of 20/80. Its total expense ratio (TER) is 0.37%.
The PowerShares Moderately Conservative Multi-Asset Allocation Portfolio (Bats: PSMM) seeks to provide current income and some capital appreciation. The fund’s benchmark index is a combination of the MSCI ACWI Index and the Bloomberg Barclays US Aggregate Index in the ratio of 40/60. Its TER is 0.38%.
The PowerShares Balanced Multi-Asset Allocation Portfolio (Bats: PSMB) seeks to provide current income and capital appreciation. The fund’s benchmark index is a combination of the MSCI ACWI Index and the Bloomberg Barclays US Aggregate Index in the ratio of 60/40. Its TER is 0.39%.
The PowerShares Growth Multi-Asset Allocation Portfolio (Bats: PSMG) seeks to provide long-term capital appreciation. The fund’s benchmark index is a combination of the MSCI ACWI Index and the Bloomberg Barclays US Aggregate Index in the ratio of 80/20. Its TER is 0.39%.