Invesco PowerShares Leading the Intelligent ETF Revolution

Transcription

1 Invesco PowerShares Leading the Intelligent ETF Revolution Thibaud de Cherisey Product Manager PowerShares-ETF Europe This document is for Professional Clients only and is not for consumer use. Please do not redistribute this document.

2 Why Europe Why Invesco PowerShares

3 Who we are Invesco Ltd: A global leader One of the world s largest, most diversified, independent global investment management companies Drawing on the strength of many resources: US$ billion in assets under management* Present in 20 countries 15 specialized investment centers 5,000+ employees worldwide 500+ investment professionals Source: as of

4 Who we are Invesco Ltd Invesco Ltd Mrd USD Americas Europe / Middle East Asia Pacific Atlanta Austin Baltimore Boston Calgary Chicago Dallas Denver Houston Louisville Montreal New York Orange County Palo Alto Portland San Francisco San Juan Toronto Washington, D.C. Amsterdam Brussels Dublin Frankfurt Henley Jersey London Dubai Madrid Milan Munich Paris Prague Vienna Zürich Hong Kong Singapur Melbourne Sydney Shenzhen Taipei Beijing Tokio Mumbai Data as of March 31, 2008 Winston- Salem 4

5 PowerShares: An Experienced Partner with Deep Expertise and Strong Global Brand Global Market Leader in value-add ETFs Second world largest ETF suppliers Fourth world largest ETF managers Passionate, bold leadership team Over 137 ETFs Trading in the US and Europe US$ 41 billion AUM* QQQQ is one of the world s highest traded equity security *As of end of May,

6 Why Europe? Why Now? Europe is the second largest market with a growth rate faster than the U.S*. European market at the base of major growth curve* Europe was the single ETF place to have a positive growth last quarter. *Source: PowerShares strategy document: ETF Strategic Planning (North America) June

7 What is the PowerShares difference? When ETFs were first created they utilised most existing indexes in the market. The most recent wave of indices has been built to expand the ETF investment options for Professional Clients seeking investments beyond Beta. Traditional Index ETF Intelligent Index Gauge the Market Beta Measure Managers Performance Market-Cap Measure Intelligent Index Alpha Intelligent Exposure Fundamental Measure Intelligent Access Access 7

8 A strong presence in the US ETF market > Global range of 137 ETFs listed in the US > Diversity of the asset classes replicated : Fixed Income ETFs (Emerging Market Sovereign Debt, Municipal bond, High Yield Corporate bonds ) International equity ETFs (Asia Pacific, Japan, Emerging market ) Style ETFs (Large, Mid, value, growth ) Dividend ETFs (International achievers, High growth rate achievers Theme ETFs (Water, Energy, private equity, Nanotech ) Sector & Industry ETFs (based on FTSE RAFI & Dynamics) Commodities & Currency product (Agricultural, base Metals, Precious Metal, Energy, Gold, Oil, Silver ) As of end of May,

9 Invesco PowerShares ETFs in Europe Fund Name Index Currency ISIN code fees Dividends Intelligent Exposure PowerShares FTSE RAFI US 1000 Fund FTSE RAFI US 1000 US$ IE00B23D8S39 PowerShares FTSE RAFI Europe Fund FTSE RAFI Europe EUR IE00B23D8X81 PowerShares FTSE RAFI Developed 1000 Fund FTSE RAFI Developed 1000 EUR IE00B23D8W74 PowerShares FTSE RAFI Developed Europe Mid-Small Fund FTSE RAFI Developed Europe Mid-Small EUR IE00B23D8Y98 PowerShares FTSE RAFI UK 100 Fund FTSE RAFI UK GBP IE00B23LNN70 PowerShares FTSE RAFI Italy 30 Fund FTSE RAFI Italy EUR IE00B23LNP94 Intelligent Index PowerShares Dynamic US Market Fund Dynamic Market Intellidex US$ IE00B23D9240 PowerShares Dynamic Global Developed Markets Fund QSG Global US$ IE00B23D9463 PowerShares Dynamic Europe Fund QSG Europe EUR IE00B23D9570 PowerShares Dynamic UK Fund QSG UK GBP IE00B23LNQ02 PowerShares Dynamic Italy Fund QSG Italy EUR IE00B23LNR19 Intelligent Access PowerShares Palisades Global Water Fund Palisades Global Water Index EUR IE00B23D9026 PowerShares Global Listed Private Equity Fund Global Listed Private Equity EUR IE00B23D8Z06 PowerShares Global Clean Energy Fund WilderHill New Energy Global Innovation EUR IE00B23D9133 PowerShares EQQQ Fund Nasdaq 100 US$ IE ,30% For illustrative purposes only. Not all ETFs are listed in all jurisdictions. 9

10 Invesco PowerShares ETFs in Europe Listed on 5 Exchanges : - London Stock Exchange, -NYSE EuronextParis, - Deutsche Börse, - Borsa Italiana -Swiss Exchange US$620 millions collected so far Secondary market: narrow spread between 1 and 7 cents max. Increasing volume traded each day: US$ 2.2 million daily traded in March As of end of May,

11 FTSE RAFI Indices

12 Intelligent Exposure: RAFI (Research Affiliates) For investors who are looking for more market-like exposure, Invesco PowerShares offers a line-up of ETFs which seek to track indexes with an Intelligent Exposure objective. They are constructed using more sophisticated techniques than traditional benchmark indexes and a weighting structure based on company fundamentals: 5 year average sales 5 year average cash flow book value 5 year average total dividends Products: PowerShares FTSE RAFI Europe Fund PowerShares FTSE RAFI Europe Small-Mid Cap Fund PowerShares FTSE RAFI Global Developed Markets Fund PowerShares FTSE RAFI Italy Fund PowerShares FTSE RAFI UK Fund PowerShares FTSE RAFI US 1000 Fund 12

13 Intelligent Index

14 Intelligent Index Invesco PowerShares believes that having insight into as stock s investment merit can have a positive impact on performance. Therefore, most Invesco PowerShares ETFs are based on intelligent indexes, which seek to provide alpha by identifying stocks with the greatest investment merit: proprietary methodologies are used to identify companies that are: financially strong effectively managed attractively priced because the objective is to maximise performance, intelligent indices will look different to the market 14

15 Intelligent Index: Fundamental This perspective seeks to determine the financial strength of a company and is based on several earnings sustainability and operational efficiency measures based on company financials. Selection Each company is evaluated on 4 broad perspectives and 25 diverse, specific factors Timeliness This perspective seeks to determine whether a company s shares are attractive in the shortterm. The factor is based upon several market measures of investor sentiment and expectation change. Company XYZ Valuation This perspective evaluates whether a stock s price is undervalued based upon several investment criteria which assess whether a stock s price is high or low relative to its current level of earnings and expected growth. Each company is assigned a cumulative composite score based on these weighted factors Risk This perspective ascertains the risk-reward profile of a company and its shares. The factor is based upon fundamental and technical market measures of investment risk. For illustrative purposes only. 15

16 Intelligent Access

17 Intelligent Access Without targeted investment products, unique market segments such as energy or private equity may be difficult for investors to access. These segments are the focus of indexes that promote Intelligent Access. Invesco PowerShares has a diverse range of ETFs based on indexes that offer exposure to specific, unique or previously uncovered market areas. Unique Market Segment Difficult to Reach Areas Instant Diversification Products: PowerShares Global Clean Energy Fund PowerShares Global Water Fund PowerShares Global Listed Private Equity Fund 17

18 Clean Energy, Water & Listed Private Equity Goal is to identify the industry leaders for each respective industry Mitigate the Large Cap Bias which can occur in highly specific industry selections Incorporate the proprietary scoring of the independent research companies into the selection process Not selected solely on classification codes, but instead relying on the broader industry knowledge of the research providers. As these are concentrated single sector funds, investors should be prepared to accept a substantially higher degree of risk than for funds with a broader investment mandate. 18

19 The EQQQ

20 PowerShares EQQQ PowerShares EQQQ provides investors diversified participation in the collective performance of NASDAQ-100 Index, which includes 100 of the largest, most innovative non-financial companies that trade on the NASDAQ Stock Market. Stock Selection Nasdaq Listed Equity Universe Largest 100 non-financial companies as measured by market capitalisation. PowerShares EQQQ. 20

21 PowerShares ETFs The Invesco PowerShares family of ETFs can be categorised in different strategies: Intelligent Index Intelligent Exposure Intelligent Access EQQQ 21

22 Invesco PowerShares ETF comparison chart 22

23 Bloomberg access: POWERSHARES<GO> Questions

24 Important Information No disclosure may be made to third parties (including potential co-investors) regarding any information disclosed in this presentation without the prior permission of Research Affiliates, LLC. By accepting this document you agree to keep its contents confidential and not to use the information contained in this document, and in the other materials you will be provided with, for any purpose other than for considering a participation in the proposed transactions. You also agree not to disclose information regarding the transactions to anyone within your organization other than those required to know such information for the purpose of analyzing or approving such participation. The material contained in this document is for information purposes only. This material is not intended as an offer or solicitation for the purchase or sale of any security or financial instrument, nor is it advice or a recommendation to enter into any transaction. The information contained herein should not be construed as financial or investment advice on any subject matter. Research Affiliates and its related entities do not warrant the accuracy of the information provided herein, either expressed or implied, for any particular purpose. Nothing contained in this material is intended to constitute legal, tax, securities or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this material should not be acted upon without obtaining specific legal, tax and investment advice from a licensed professional. Indexes are unmanaged and cannot be invested in directly. Returns represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment. Any information and data pertaining to indexes contained in this document relates only to the index itself and not to any asset management product based on the index. No allowance has been made for trading costs, management fees, or other costs associated with asset management as the information provided relates only to the index itself. With the exception of data on Research Affiliates Fundamental Indexes, all other information and data are based on information and data available from public sources. Any inquiries relating to the transactions should be directed to Research Affiliates, LLC. The trade names Fundamental Index, Fundamental Indexing, RAFI, RAFI-Global, Fundamental Global, Fundamental K, Fundamental Q, Fundamental REIT, Fundamental 100, Fundamental 200, Fundamental 250, Fundamental 1000, Fundamental 2000, Fundamental 3000, Global Fundamental, Research Affiliates, Mainstreet Index, Mainstreet Indexing, Synthetic Strips, Virtual Mutual Fund, the RAFI logo and the Research Affiliates corporate name and logo are the exclusive intellectual property of Research Affiliates, LLC. Any use of these trade names and logos without the prior written permission of Research Affiliates, LLC is expressly prohibited. Research Affiliates, LLC reserves the right to take any and all necessary action to preserve all of its rights, title and interest in and to these terms and logos. Fundamental Index, the non-capitalization method for creating and weighting of an index of securities, is the patent-pending proprietary intellectual property of Research Affiliates, LLC (Patent Pending. Publ. Nos. US A1, US A1 and WO 2005/076812) Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is not guarantee of future results. 24

25 Important Information This document is exclusively for use by professional clients in Continental Europe and is not for consumer use. Data as at 31/01/08, unless otherwise stated. Please do not redistribute this document. Past performance is not an indication of future performance, provides no guarantee for the future and is not constant over time. The value of funds and ETFs and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested. Whilst an ETF will seek to track an Index, Invesco PowerShares does not guarantee that this will occur. When making an investment in an ETF you are buying shares in a company that is listed on a stock exchange. The price of the shares will be determined by supply and demand. It is expected that shares in the ETFs will trade closely to their NAV, and because of the exchange-traded fund structure, it is expected that a significant discount or premium of price to asset value will not be sustainable over the long term. However, supply and demand on the relevant exchange together with any disruptions to creations and redemptions may result in trading prices that differ significantly from the NAVs and there can be no certainty that there will be liquidity in the shares on any exchange. The distribution and the offering of funds and ETFs in certain jurisdictions may be restricted by law. Persons into whose possession this brochure may come are required to inform themselves about and to comply with any relevant restrictions. This does not constitute an offer or solicitation by anyone in any jurisdiction in which such an offer is not authorised or to any person to whom it is unlawful to make such an offer or solicitation. Persons interested in acquiring funds or ETFs should inform themselves as to (i) the legal requirements in the countries of their nationality, residence, ordinary residence or domicile: (ii) any foreign exchange controls: and (iii) tax consequences which might be relevant to the acquisition, holding or disposal of shares/units in the funds or ETFs. The ETFs are available only in jurisdictions where they are listed, please see page 2 and 3 of the brochure for details. This marketing document does not form part of any prospectus. Whilst great care has been taken to ensure that the information contained herein is accurate, no responsibility can be accepted for any errors, mistakes or omissions or for any action taken in reliance thereon. Opinions and forecasts are subject to change without notice. The performance data shown does not take account of the commissions and costs incurred on the issue and redemption of units. There is potential for increased volatility in emerging stock markets, and only a modest proportion of investable wealth should be invested in them. Investing in funds focused on specific themes, particular areas of the market or small capitalisation companies may increase the risk associated with them due to the volatility and/or the concentrated nature of these investments. You should read the fund prospectus for specific risk factors and further information. This document is not an invitation to subscribe for shares in the fund and is by way of information only. Asset management services are provided by Invesco in accordance with appropriate local legislation and regulations. Additional information for professional clients in Germany, Austria and Switzerland This document is issued in Germany by Invesco Asset Management Deutschland GmbH regulated by Bundesanstalt für Finanzdienstleistungsaufsicht. This document is issued in Austria by Invesco Asset Management Österreich GmbH and in Switzerland by Invesco Asset Management (Schweiz) AG. Subscriptions of shares are only accepted on the basis of the current fund prospectus. Swiss investment professionals should consider this document only in connection with the relevant monthly fund fact sheet which contains further performance information. Prospectuses and reports are available free of charge at Invesco Asset Management Deutschland GmbH, Bleichstrasse 60-62, D Frankfurt/M., Invesco Asset Management Österreich GmbH, Rotenturmstrasse 16-18, A-1010 Vienna, and Invesco Asset Management (Schweiz) AG, Genferstrasse 21, CH-8002 Zurich. 25