Invesco PowerShares Announces Zero Capital Gains Distributions for 2009 on 116 of 117 Funds
07 Janeiro 2010 - 12:30PM
Marketwired
Invesco PowerShares Capital Management LLC, a leading provider of
exchange-traded funds (ETFs), today announced that 116 out of 117
of its ETFs paid zero capital gains distributions for 2009.
Only one PowerShares ETF -- the PowerShares NASDAQ-100 BuyWrite
Portfolio (PQBW) -- realized a small capital gains distribution
(see table below), due largely to the unique underlying index
methodology, which writes covered calls on the NASDAQ-100 Index.
This is the first distribution for any PowerShares equity or
fixed-income ETF since the firm's 2003 inception.
"Our team manages ETF holdings in a manner which minimizes the
amount of capital gains incurred by the funds. For the seventh
consecutive year, we are very pleased that the process has
prevented capital gains distributions for the vast majority of
PowerShares ETFs," said Ben Fulton, Invesco PowerShares managing
director of ETFs. "This achievement highlights one of the many
advantages ETFs can provide shareholders seeking to maximize real
returns. Reducing the impact of taxes can meaningfully improve an
investor's prospects for creating and preserving real wealth."
"ETFs generally allow investors greater tax planning flexibility
compared to other product structures by providing control over the
timing of capital gains," said Fulton. "Similar to shares of common
stock, the shareholders of an ETF typically realize taxable
consequences only when shares are sold, thereby potentially
minimizing or eliminating tax liability. Additionally, the in-kind
method utilized by ETF asset managers during the creation and
redemption process generally allows portfolios to avoid year-end
capital gain payouts."
The only PowerShares ETF that paid a capital gain distribution
for 2009 -- PQBW -- is unique in the fact that it accounts for its
gain or loss on its investments for federal income tax purposes on
a daily mark-to-market basis.
Estimated Capital Gain Distributions
Short-Term Capital Long-Term Capital Total Capital
Gains ($/share) Gains ($/share) Gains
PowerShares $0.00 $0.14639 $0.14639
NASDAQ-100
BuyWrite Portfolio
Invesco PowerShares Capital Management LLC is Leading the
Intelligent ETF Revolution® through its family of more than 110
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 $41 billion as of Sept. 30,
2009, PowerShares ETFs trade on both U.S. stock exchanges. For more
information, please visit us at www.invescopowershares.com.
Invesco PowerShares is a wholly owned subsidiary of Invesco
Ltd., a leading independent global investment management firm
dedicated to helping people worldwide build their financial
security. Invesco provides a comprehensive array of enduring
investment solutions for retail, institutional and high-net-worth
clients around the world. Operating in 20 countries, the firm is
listed on the New York Stock Exchange under the symbol "IVZ."
Additional information is available at www.invesco.com.
There are risks involved with investing in ETFs including
possible loss of money. Shares are not actively managed and are
subject to risks similar to those of stocks, including those
regarding short selling and margin maintenance requirements.
Ordinary brokerage commissions apply.
There are additional risks involved in writing (selling) covered
call options on the stocks of the NASDAQ-100 Index. The Fund, by
writing covered call options on this Reference Index, will give up
the opportunity to benefit from potential increases in the value of
the index stocks above the exercise prices of the options, but will
continue to bear the risk of declines in the value of the Reference
Index. The premiums received from the options may not be sufficient
to offset any losses sustained from the volatility of the Reference
Index over time. In addition, exchanges may suspend trading of
options in volatile markets. If trading is suspended, the Fund may
be unable to write (sell) options at times that may be desirable or
advantageous for the Fund to do so. Trading suspensions may limit
the Fund's ability to achieve its investment objectives. The Fund
may be required to sell investments from its portfolio to make cash
settlement on (or transfer ownership of an Index stock to
physically settle) any options that are exercised. Such sales (or
transfers) may occur at inopportune times, and the Fund may incur
transaction costs that increase its expenses.
Invesco PowerShares does not offer tax advice. Please consult a
tax advisor for advice regarding your specific situation.
Invesco Aim Distributors, Inc. is the distributor of the
PowerShares Exchange-Traded Fund Trust, the PowerShares
Exchange-Traded Fund Trust II, the PowerShares India
Exchange-Traded Fund Trust and the PowerShares Actively Managed
Exchange-Traded Fund Trust.
PowerShares® is a registered trademark of Invesco PowerShares
Capital Management LLC. Invesco PowerShares Capital Management LLC
and Invesco Aim Distributors, Inc. are indirect, wholly owned
subsidiaries of Invesco Ltd.
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.
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 www.invescopowershares.com for a prospectus. Please read the
prospectus carefully before investing.
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Media Contacts: Kristin Sadlon Porter Novelli 212-601-8192 Email
Contact Bill Conboy 303-415-2290 Email Contact
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