PowerShares info:
Press Release Source: PowerShares Capital Management
PowerShares Capital Management Awarded Exclusive ETF Licenses for Two Preferred Equity Indexes From Wachovia Securities
Wednesday August 30, 5:43 pm ET
CHICAGO, IL--(MARKET WIRE)--Aug 30, 2006 -- PowerShares Capital Management continues to "Lead the Intelligent ETF Revolution" and today announced that it has retained exclusive rights from Wachovia Securities as the sole licensee for two preferred equity indexes for Exchange Traded Funds (ETFs). The WHPS(SM) Financial Index tracks the performance of preferred equity issued by financial institutions. The WHPS(SM) REIT Index tracks the performance of preferred equity issued by Real Estate Investment Trusts (REITs). PowerShares has filed a registration statement with the SEC and anticipates listing ETFs based on the indexes later this year.
Preferred stocks are a class of equity security that has payment priority over common stock with respect to payment of dividends and the event of an issuer's liquidation. Both WHPS(SM) indices are market capitalization weighted and rule-based. The securities eligibility criteria in each WHPS(SM) index are determined by the proprietary selection methodology of Wachovia Securities.
The WHPS(SM) Financial Index is comprised exclusively of preferred stocks issued by financial institutions. The WHPS(SM) Financial Index is adjusted monthly and selects preferred stocks that are publicly issued in the U.S. domestic market, have a par amount of at least $25, maintain a minimum of ten million shares outstanding and have fixed dividends for the life of the security.
The WHPS(SM) REIT Index is comprised exclusively of preferred securities issued by listed REITs. The WHPS(SM) REIT Index is adjusted monthly and selects preferred stocks which are U.S. dollar-denominated and registered in the U.S. domestic market, have a par amount of at least $25, maintain a minimum outstanding size of $50 million and maintain fixed coupons for the life of the security.
"We are very pleased to be working with Wachovia Securities, a long established leader in the preferred equity market. Exchange-traded funds based on preferred equity will be an exciting new development that we believe will appeal to many investors," said Bruce Bond, President of PowerShares Capital Management. "The WHPS(SM) preferred indexes are a great fit for PowerShares' growing family of 'Intelligent ETFs,' and we believe they will offer both retail and institutional investors a convenient diversified means to access this market."
PowerShares Capital Management LLC is passionate about its goal of efficiently delivering the highest quality institutional investment management available. PowerShares is "Leading the Intelligent ETF Revolution," providing investment advisors with institutional caliber asset management through the replication of enhanced indexes in one of the more benefit rich investment vehicles available in the marketplace today, the exchange-traded fund. PowerShares Capital Management LLC is an asset management company committed to theoretically sound portfolio construction and empirically verifiable investment management approaches. Their asset management philosophy and investment discipline are deeply rooted in the application of intuitive factor analysis and model implementation to enhance investment decisions.
Wachovia Corporation (NYSE:WB - News) is one of the nation's largest diversified financial services companies, providing 13.4 million household and business relationships with a broad range of banking, asset management, wealth management and corporate and investment banking products and services. Wachovia has retail and commercial banking operations in 16 states with 3,109 offices from Connecticut to Florida and west to Texas and California. Two core businesses operate under the Wachovia Securities brand name: retail brokerage in 49 states and in Latin America, and corporate and investment banking in selected industries nationwide. Globally, Wachovia serves clients through more than 40 international offices. Online banking is available at wachovia.com; online brokerage products and services at wachoviasec.com, and investment products and services at evergreeninvestments.com. Wachovia had assets of $553.6 billion, market capitalization of $86.0 billion and stockholders' equity of $48.9 billion at June 30, 2006.
WHPS(SM) is a trademark of Wachovia Capital Markets, LLC, or its parent Corporation, Wachovia Corporation, and has been licensed for use by PowerShares Capital Management LLC. The product is not sponsored, endorsed, sold or promoted by Wachovia Capital Markets, LLC, and Wachovia Capital Markets, LLC, makes no representation regarding the advisability of investing in this product.
Risks of Owning PowerShares
PowerShares funds are made up of publicly traded securities that can and will move higher and lower with market movements. You should anticipate that the value of the shares of each fund will advance or decline more or less in correlation with the advance or decline in value of the applicable index. The funds are not actively managed and shares of the funds may trade at or below the funds' NAV. Exchange traded funds are subject to risks similar to those of stocks, including risks associated with short-selling and margin account maintenance.
ALPS Distributors, Inc. is the distributor of the PowerShares Exchange Traded Fund Trust.
An investor should consider the Fund's investment objectives, risks, charges and expenses carefully before investing. For this and more complete information about the Fund, call 800.THE.AMEX or visit the website www.powershares.com for a prospectus. Please read the prospectus carefully before investing.
The information in this 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.
Contact:
Contact:
CTA Public Relations
Bill Conboy
303-665-4200 x 106
Email Contact
--------------------------------------------------------------------------------
Source: PowerShares Capital Management
