Contact Information: Media Contacts: Kristin Sadlon Porter Novelli 212-601-8192 Bill Conboy BC Capital Partners 303-415-2290
Invesco PowerShares to List MENA Frontier Countries ETF
CHICAGO, IL--(Marketwire - June 11, 2008) - Invesco PowerShares, a leading provider of
exchange-traded funds (ETFs), announced today the anticipated listing of a
frontier countries portfolio, designed to provide investors access to
equity markets in the Middle East and North Africa. The new ETF is expected
to list on the Nasdaq Stock Market.
The anticipated ticker symbol and ETF portfolio name follows:
-- PMNA - PowerShares MENA Frontier Countries Portfolio
"The PowerShares MENA Frontier Countries Portfolio replicates an index
which takes into account certain foreign ownership limitations that are
encountered when investing in the Middle East and North Africa," said Bruce
Bond, president and CEO of Invesco PowerShares. "We believe PMNA represents
a compelling new vehicle for investors seeking access to MENA equities, as
it aims to provide access to nine select frontier markets."
The PowerShares MENA Frontier Countries Portfolio (PMNA) is based on the
NASDAQ OMX Middle East North Africa Index(SM). This index is designed to
measure the performance of the largest and most liquid securities of
companies domiciled in the Middle Eastern and North African countries that
have smaller economies or less developed capital markets than traditional
emerging markets. The Index currently includes securities domiciled in:
Egypt, Morocco, Oman, Lebanon, Jordan, Kuwait, Bahrain, Qatar and United
Arab Emirates (Index currently includes the emirates of Dubai and Abu
Dhabi).
Many of these frontier countries impose restrictions on foreign
investments, including foreign ownership limitations. These restrictions
may vary from issuer to issuer. At each quarterly rebalance and
reconstitution, NASDAQ OMX Group, Inc., the index provider, takes into
account the current foreign ownership limitations and locked-in stock. In
addition, when a security in the Index reaches its limitations on foreign
ownership, it will be removed from the underlying index on that day.
Invesco PowerShares is leading the intelligent ETF revolution through its
family of more than 100 domestic and international index-based and actively
managed exchange-traded funds. With assets under management as of April 30,
2008 of $13.86 billion, PowerShares ETFs trade on all of the major U.S.
stock exchanges that trade ETFs. For more information, please visit us at
www.invescopowershares.com.
Invesco PowerShares is a part of Invesco Ltd., a leading independent global
investment management company dedicated to helping people worldwide build
their financial security. By delivering the combined power of its
distinctive worldwide investment management capabilities, including AIM,
Atlantic Trust, Invesco, Perpetual, PowerShares, Trimark, and WL Ross,
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 company is currently 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 risk similar to
stocks and covered call options, as well as those risks related to short
selling and margin maintenance.
Small- and Medium-Sized Company Risk Information
An investment in securities of small and medium-sized companies involves
greater risk than is customarily associated with investing in more
established, larger sized companies.
Foreign Risk Information
An investment in the securities of non-U.S. issuers involves risks beyond
those associated with investments in U.S. securities, including, but not
limited to: greater
market volatility, the availability of less reliable financial information,
higher transactional and custody costs, taxation by foreign governments,
decreased
market liquidity, political instability, negative impact of changes in
currency exchange rates or foreign governmental regulation, currency risk,
fluctuation due to changes in interest rates, effects of monetary policies
issued by the United States, foreign governments, central banks or
supranational entities and currency controls or other national or global
political economic developments, among others.
Frontier Market Risk Information
An investment in securities of frontier countries involves risks not
associated with investments in securities of developed countries,
including, but not limited
to: generally smaller economies or less developed capital markets than
traditional emerging markets, economies that are less correlated to global
economic
cycles than those of their more developed counterparts, low trading
volumes, potential for extreme price volatility and illiquidity, which may
be further heightened by the actions of a few major investors, governments
of many frontier countries in which the Fund invests may exercise
substantial influence over
many aspects of the private sector (in some cases, the governments of such
frontier countries may own or control certain companies), government
action,
heavy dependency upon international trade which has been and may continue
to be, adversely affected by trade barriers, exchange controls, managed
adjustments in relative currency values and other protectionist measures
imposed or negotiated by the countries with which they trade, and risks
associated
with certain foreign governments in countries in which the Fund invests
levying withholding or other taxes on dividend and interest income,
sanctions or
embargoes imposed by the U.S. government and the United Nations and/or
countries identified by the U.S. government as state sponsors of terrorism
and foreign investment holdings limitations, among others.
Micro-Capitalization Company Risk Information
Investments in securities of micro-capitalization companies involve
substantially greater risks of loss and price fluctuations because their
earnings and revenues
tend to be less predictable (and some companies may be experiencing
significant losses), and their share prices tend to be more volatile and
their markets less liquid than companies with larger market
capitalizations.
Non-Diversified Fund & Industry Risk Information
The Fund is considered non-diversified and can invest a greater portion of
assets in securities of individual issuers than a diversified fund. As a
result, changes
in the market value of a single investment could cause greater fluctuations
in share price than would occur in a diversified fund.
The economies of frontier country markets are less developed and can be
overly reliant on particular industries. It is likely that a substantial
number of stocks
included in the Underlying Index for certain of the MENA frontier countries
will be securities of banks and other financial institutions.
When a Fund is focused in a specific industry or sector, it presents
greater risks than if it were broadly diversified over numerous industries
and sectors of the economy. Please read the prospectus for a summary of
these risks pertaining to each industry or sector.
Tax Consequences of Redemption Proceeds Being Limited Primarily to Cash
Risk Information
Unlike most exchange-traded funds, the Fund does not and currently intends
to make primarily in-kind redemptions. As such the Fund may be required to
sell
portfolio securities in order to obtain the cash needed to distribute
redemption proceeds. Generally, this will cause the Fund to recognize gain
it might not
otherwise have recognized, or to recognize such gain sooner than would
otherwise be required, if it were able to distribute the shares primarily
in-kind. Based on
the U.S. federal income tax rules applicable to the fund and an investment
in the Fund, this may cause particular shareholders to be subject to tax on
gains they
would not otherwise be subject to, or at an earlier date than, if they had
made an investment in a different exchange-traded fund.
NASDAQ®, OMX and NASDAQ OMX Middle East North Africa Index(SM) are
trade/service marks of The NASDAZ OMX Group, Inc. (which with its
affiliates is referred to as the "Corporations") and are licensed for use
by Invesco PowerShares. The Fund has not been passed on by the Corporations
as to their legality or suitability. The Fund is not issued, endorsed, sold
or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND
BEAR NO LIABILITY WITH RESPECT TO THE FUND.
Shares are not FDIC insured, may lose value and have no bank guarantee.
Shares are not individually redeemable and owners of the shares may acquire
those shares from the Funds and tender those shares for redemption to the
Funds in Creation Unit aggregations only, typically consisting of 100,000
shares.
Invesco Aim Distributors, Inc. is the distributor of the PowerShares
Exchange-Traded Fund Trust II.
Invesco PowerShares Capital Management LLC. and Invesco Aim Distributors,
Inc. are indirect, wholly owned subsidiaries of Invesco Ltd.
An investor should consider each Fund's investment objective, risks,
charges and expenses carefully before investing. The prospectus contains
this and other information about the Funds. For more complete information
about the Funds or to obtain a prospectus, call 800.983.0903. Please read
the prospectus carefully before investing.
The information in the prospectus is not complete and may be changed. The
portfolio may not sell its shares until the registration statement filed
with the Securities and Exchange Commission is effective. The prospectus is
not an offer to sell the portfolio shares, nor is the portfolio soliciting
an offer to buy its shares in any jurisdiction where the offer or sale is
not permitted.