CHICAGO, IL--(Marketwired - Dec 17, 2014) - Invesco PowerShares Capital Management, LLC, a leading global provider of exchange-traded funds (ETFs), announced today the PowerShares Multi-Strategy Alternative Portfolio (
"We are proud of our role as an ETF innovator and are truly honored to be recognized again this year by our industry with the 2014 William F. Sharpe Award for ETF Innovation of the Year," said Dan Draper, Managing Director and Head of Invesco PowerShares. "We are also pleased to see that the Morgan Stanley Multi-Strategy Alternative Index achieved the award for Indexing Innovation of the Year. The PowerShares Multi-Strategy Alternative Portfolio (LALT) is a groundbreaking ETF designed to help investors reach their portfolio objectives by reducing the volatility of returns and mitigating the risk of drawdowns. LALT employs a long-short strategy that seeks to provide a positive total return with low correlation to the broader securities markets, delivered through the cost-efficient ETF vehicle.1"
LALT was recognized as ETF Innovation of the Year for being the most innovative new fund on the ETF market over the previous year. This is the second consecutive year a PowerShares ETF has received this prestigious award, following the PowerShares S&P 500® Downside Hedged Portfolio (PHDG) as the 2013 recipient.
The William F. Sharpe Awards recognize the best and the brightest innovators in the field of indexing, ETFs, and investment management. This year's awards were presented at the 2014 Global Indexing & ETFs Conference held in Scottsdale, Arizona from December 8-10, 2014.
The PowerShares Multi-Strategy Alternative Portfolio (LALT) is an actively managed ETF that seeks a positive total return with low correlation to the broader securities markets. Invesco Advisers, Inc., the sub-adviser to the Fund, selects investments for inclusion in the Fund's portfolio with reference to the components of the Morgan Stanley Multi-Strategy Alternative Index (the Benchmark) using a quantitative process that seeks to exceed the Benchmark's performance.
The Benchmark is a proprietary index developed and used by Morgan Stanley's Sales & Trading Division. The Benchmark and its components consist of a combination of quantitative, rules-based strategies, some of which have been used for years as benchmarks for products offered to institutional investors. Since the Benchmark's underlying strategies draw returns from different risk sources, combining the strategies may result in further diversification and volatility reduction.
To learn more about the PowerShares Multi-Strategy Alternative Portfolio (LALT), please visit
1Since ordinary brokerage commissions apply for each buy and sell transaction, frequent trading activity may increase the cost of ETFs. ETFs disclose their full portfolio holdings daily. Shares are not individually redeemable and owners of the shares may acquire those shares from the Fund and tender those shares for redemption to the Fund in Creation Unit aggregations only, typically consisting of 50,000 shares.
About Invesco PowerShares Capital Management LLC and Invesco, Ltd.
Invesco PowerShares Capital Management LLC is leading the Intelligent ETF Revolution® through its family of more than 170 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 of over $100 billion2 as of November 30, 2014, PowerShares ETFs trade on both US stock exchanges. For more information, please visit us at invescopowershares.com or follow us on Twitter @PowerShares.
Invesco Ltd. is a leading independent global investment management firm, 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 clients around the world. Operating in more than 20 countries, the firm is listed on the New York Stock Exchange under the symbol IVZ. Additional information is available at www.invesco.com.
2US franchise assets include QQQs, BLDRS and DB Funds. ALPS Distributors, Inc. is the distributor of PowerShares QQQ, BLDRS Funds and PowerShares DB Funds. PowerShares QQQ and BLDRS Funds are unit investment trusts. Invesco PowerShares and Invesco Distributors, Inc. are not affiliated with ALPS Distributors, Inc.
Not FDIC Insured | May Lose Value | No Bank Guarantee
Important Risk Information
Alternative strategies typically are subject to increased risk and loss of principal.
Consequently, investments such as exchange-traded funds which focus on alternative strategies are not suitable for all investors.
There are risks involved with investing in ETFs, including possible loss of money.
Index-based ETFs are not actively managed. Actively managed ETFs do not necessarily seek to replicate the performance of a specified index. Both index-based and actively managed ETFs are subject to risks similar to stocks, including those related to short selling and margin maintenance. Ordinary brokerage commissions apply.
The Fund is subject to management risk because it is an actively managed portfolio.
The investment techniques and risk analysis used by the portfolio managers may not produce the desired results.
The Sub-Adviser uses a rules-based methodology to allocate the Fund's assets in a combination of investment strategies designed to limit the Fund's risk and volatility. As market dynamics shift over time, these various investment strategies -- as well as the rules-based methodology that the Sub-Adviser employs to allocate Fund assets among them -- may become outdated or inaccurate. As a result, the Fund may suffer significant losses.
Some Benchmark Strategies attempt to hedge out broader exposure to their respective asset classes by short positions in futures, forwards, individual stocks, or other securities. These hedges may not always be effective, can result in unexpected exposures and potential losses, and may act to magnify losses.
While the Benchmark Strategies are designed to exhibit low correlation to each other and to the broader securities markets, there are no assurances that this low correlation will continue in the future.
Short sales are speculative transactions and involve special risks, including a greater reliance on the Sub-Adviser's ability to accurately anticipate the future value of a security.
The Fund's exposure to derivatives and other investment techniques, such as short sales, can create a leveraging effect on the portfolio. This leverage will vary over time and may at times be significant, subjecting the Fund to certain risks causing the Fund to be more volatile and may result in the loss of a substantial amount of the Fund's assets. The Fund may have a substantial cash position due to margin and collateral requirements that may limit the Fund's ability to take advantage of other investment opportunities, and the Fund also may have to sell or liquidate a portion of its assets at inopportune times to satisfy these requirements. This may negatively affect the Fund's ability to achieve its investment objective. In addition, the Fund's assets that are used as collateral to secure these transactions may decrease in value while the positions are outstanding, which may force the Fund to use its other assets to increase collateral.
The Fund currently intends to effect creations and redemptions principally for cash, rather than principally in-kind because of the nature of the Fund's investments. As such, investments in the Fund may be less tax efficient than investments in ETFs that create and redeem in-kind.
The Fund is considered non-diversified and may be subject to greater risks than a diversified fund.
The Fund is subject to other certain risks. Please see the prospectus for more information regarding the risks associated with an investment in the fund.
Diversification does not guarantee a profit or eliminate the risk of loss.
The Morgan Stanley Multi-Strategy Alternative Index is a quantitative, rules-based Index consisting of five long, short and market-neutral (long/short) strategies which aim to capture alternative risk premia across equities, interest rates, currencies and volatility markets. Each of the five strategies is available as a standalone, rules-based index which had been created by Morgan Stanley & Co. LLC (the Benchmark Agent) and has a live history. The Multi-Strategy Alternative Index uses a risk-weighted framework by allocating to each strategy a weighting which is proportionate to the inverse of its 1-year trailing volatility. The weightings are rebalanced quarterly.
The Morgan Stanley Multi-Strategy Alternative Index (the "Index") and Morgan Stanley (the "Marks") are the exclusive property of Morgan Stanley & Co. LLC ("Morgan Stanley"), which has contracted with Invesco PowerShares Capital Management LLC to license certain exclusive rights to use and refer to Indexes and Marks. The PowerShares Multi-Strategy Alternative Portfolio is not sponsored, endorsed, sold or promoted by Morgan Stanley or its affiliates. Morgan Stanley and its affiliates make no representation or warranty, express or implied, regarding the advisability of investing in securities generally or in the PowerShares Multi-Strategy Alternative Portfolio particularly or the ability of the Morgan Stanley Multi-Strategy Alternative Index to track general market performance. Neither Morgan Stanley nor its affiliates are responsible for and have not participated in the determination of the prices and amount of the PowerShares Multi-Strategy Alternative Portfolio or the timing of the issuance or sale of the PowerShares Multi-Strategy Alternative Portfolio or in the determination or calculation of the equation by which the PowerShares Multi-Strategy Alternative Portfolio is to be converted into cash. Neither Morgan Stanley nor its affiliates shall have any liability, direct or indirect, for the PowerShares Multi-Strategy Alternative Portfolio, Marks and/or the Index, including any errors or omissions in the calculation thereof.
PowerShares® is a registered trademark of Invesco PowerShares Capital Management
LLC (Invesco PowerShares). Invesco PowerShares, Invesco Advisers, Inc. and Invesco Distributors, Inc. are indirect, wholly owned subsidiaries of Invesco Ltd.
Invesco Distributors, Inc. is the distributor of the PowerShares Actively Managed Exchange-Traded Fund Trust. Invesco Advisers, Inc. is an investment adviser. It provides investment advisory services and does not sell securities.
Note: Not all products available through all firms.
An investor should consider the Fund's investment objective, risks, charges and expenses carefully before investing. For this and more complete information about the Fund call 800 983 0903 or visit invescopowershares.com for a prospectus. Please read the prospectus carefully before investing.