Products February 18, 2014

Invesco PowerShares Expands Smart Beta Suite

Invesco PowerShares Capital Management LLC announced that its PowerShares International BuyBack Achievers Portfolio will be listed on the NASDAQ stock market starting February 27.
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The portfolio will provide investors efficient access to a portfolio of international companies classified as International BuyBack Achievers. BuyBack Achievers are companies that have effected a net reduction of 5% or more of their outstanding shares in the past 12 months, and have met additional criteria in accordance with the guidelines and mandated procedures of the NASDAQ OMX Group, Inc., the underlying index provider.

“Our U.S.-focused flagship, the PowerShares BuyBack Achievers Portfolio has achieved a competitive long-term track record demonstrating the investment merit of the BuyBack Achievers methodology, and more broadly of smart beta” says Lorraine Wang, Invesco PowerShares global head of ETF (exchange-traded fund) products and research, based in Chicago. “The PowerShares International BuyBack Achievers Portfolio expands the range of tools investors can use to efficiently allocate the BuyBack Achievers strategy across the globe.”

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PowerShares International BuyBack Achievers Portfolio is based on the NASDAQ International BuyBack Achievers Index. It includes common stocks of foreign companies classified as International BuyBack Achievers in accordance with the NASDAQ OMX Group Inc. proprietary selection methodology. The portfolio will generally invest in all of the securities comprising the underlying index, and is rebalanced quarterly in January, April, July and October. The portfolio has an expense ratio of 0.55%.

More institutional investors are using smart beta ETFs in an effort to reduce portfolio volatility (see “Smart Beta ETFs Can Be Used to Reduce Volatility”). To learn more about smart beta investing, visit http://www.invescopowershares.com/smart-beta/.

Invesco PowerShares Capital Management LLC is a global provider of exchange-traded funds (ETFs).

Products February 18, 2014

MEP Offers Fiduciary Services

A registered investment adviser (RIA) firm has signed on to provide 3(38) investment manager services for a multiple employer plan (MEP) offering.
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Redhawk Wealth Advisors, Inc. has entered into a strategic alliance with Centier Bank, a regional bank and trust company, under which Redhawk will serve as the ERISA 3(38) provider for the Centier Open MEP.

Centier’s Open MEP removes the employer as the plan sponsor and trustee for their company’s retirement plan. It reduces the employer’s fiduciary liability by transferring personal liability to an independent fiduciary. Adopting employers can focus their resources on running their business and maintaining their company’s profitability, while at the same time reducing their corporate and personal fiduciary liability. Under the Open MEP, Centier operates as the ERISA 3(16) fiduciary and oversees the governance, risk, and compliance management on behalf of the employer.

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Redhawk serves as the ERISA 3(38) investment manager and takes over the fiduciary responsibilities of the investments for the plan and participants. Redhawk is responsible for the selection, monitoring and replacement of the investments in the plan. The investments include low cost exchange-traded funds (ETFs) and collective investment funds (CIFs) that are fully transparent, as well as model portfolios. Participants have access to professionally managed portfolios to help them establish and attain their retirement goals.

“We work with many types of advisers and Redhawk’s program and education materials are the best we’ve seen,” says James Boyd, vice president, Wealth Management of Centier Bank.

The Open MEP was developed by Centier’s Strategic Financial Services (SFS) team. More information is at http://www.centier.com/sfs.

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