Products October 25, 2011

Invesco Launches ETFs Based on KBW Indexes

Invesco PowerShares Capital Management has expanded its partnership with Keefe, Bruyette & Woods, Inc. (KBW) to become the exclusive licensee of four KBW indexes. 
Reported by

The four KBW indexes include:

•  The PowerShares KBW Bank Portfolio (KBWB) is based on the KBW Bank Index. The fund will normally invest at least 90% of its total assets in securities that comprise the Underlying Index. The Index is a float adjusted modified-market capitalization-weighted index that seeks to reflect the performance of companies that do business as banks or thrifts that are publicly-traded in the U.S.

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•  The PowerShares KBW Regional Banking Portfolio (KBWR) is based on the KBW Regional Banking Index. The fund will normally invest at least 90% of its total assets in securities that comprise the Underlying Index. The Index is an equal weighted float-adjusted market capitalization index that seeks to reflect the performance of publicly traded companies that do business as regional banks or thrifts listed on U.S. stock markets.

•  The PowerShares KBW Capital Markets Portfolio (KBWC) is based on the KBW Capital Markets Index. The fund will normally invest at least 90% of its total assets in securities that comprise the Underlying Index. The Index is a float adjusted modified-market capitalization-weighted index that seeks to reflect the performance of companies that do business as broker-dealers, asset managers, trust and custody banks or exchanges that are publicly traded.

•  The PowerShares KBW Insurance Portfolio (KBWI) is based on the KBW Insurance Index. The fund will normally invest at least 90% of its total assets in securities that comprise the Underlying Index. The Index is a float adjusted modified-market capitalization-weighted index that seeks to reflect the performance of companies in the insurance industry that are publicly traded in the U.S.

Products October 24, 2011

Natixis Launches ASG Growth Markets Fund

Natixis Global Associates (NGA) launched a risk-managed emerging markets mutual fund from AlphaSimplex Group (ASG).
Reported by

The ASG Growth Markets Fund (AGMAX) seeks to deliver the long-term returns of emerging market stocks with less severe draw-downs than major emerging market equity indexes. ASG seeks to control volatility through an overlay portfolio of futures and forward contracts designed to contain the risks of emerging market equities.   

Dr. Andrew W. Lo will co-manage the fund with Jeremiah H. Chafkin and Dr. Alexander D. Healy.   

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Similar to the other three ASG funds — ASG Global Alternatives Fund (GAFAX), ASG Diversifying Strategies Fund (DSFAX), and ASG Managed Futures Strategy Fund (AMFAX) — the new fund uses a mix of long and short exposures that ASG actively adjusts with the goal of controlling risk. A portion of the fund’s assets is allocated to a portfolio of emerging market equities subadvised by Westpeak Global Advisors.   

ASG manages the risk elements of the equity portfolio with an overlay portfolio of futures contracts on developed and emerging market equity indexes, government bonds, short-term interest rates, and commodities, as well as forward contracts on developed and emerging market currencies. The remainder of the fund’s assets is invested in a portfolio of cash securities, which will be used to support the overlay portfolio of futures and forward contracts. Reich & Tang will serve as the subadvisor for the cash portfolio.   

The ASG Growth Markets Fund is available to U.S. investors through A, C and Y shares. The minimum investment is $2,500 for A and C shares, and $100,000 for Y shares.

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