Products July 16, 2012

Invesco to Expand Suite of DWA Technical Leaders ETFs

Invesco PowerShares Capital Management LLC announced the anticipated listing of the PowerShares DWA SmallCap Technical Leaders Portfolio on July 19, on the NYSE Arca.
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The fund is expected to trade under the ticker DWAS and, according to Invesco, represents the first U.S. small-cap exchange-traded fund (ETF) based on the concept of relative strength ranking. Technical Leaders are companies identified by the DWA selection methodology that possess strong relative strength characteristics compared to their peers and industry benchmarks. Relative strength is a quantitative measure of a stock’s performance in relation to the rest of the market, expressed generally in percentage form.  

The PowerShares DWA SmallCap Technical Leaders Portfolio (DWAS) is based on the Dorsey Wright SmallCap Technical Leaders Index. The fund generally will invest at least 90% of its total assets in equity securities of small capitalization companies that comprise the underlying index. The Index includes approximately 200 companies pursuant to a proprietary selection methodology that is designed to identify companies that demonstrate powerful relative strength characteristics from a small-cap universe of approximately 2,000 U.S.-listed companies. The fund is rebalanced and reconstituted quarterly.  

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“We are pleased to once again partner with Dorsey, Wright & Associates for the PowerShares DWA SmallCap Technical Leaders Portfolio (DWAS), providing investors with a full suite of Technical Leaders ETFs based on the firm’s respected research.” said Ben Fulton, Invesco PowerShares managing director of global ETFs. “The DWA Technical Leaders strategy, based on relative strength, is widely followed by advisers and professional asset managers.”  

More information is here.

 

The Markets July 16, 2012

Mutual Funds Saw Lowest Monthly Intake in June

Long-term mutual funds recorded their lowest monthly intake year to date with just $10.8 billion in new money in June, according to data from Morningstar.
Reported by

Money market funds saw outflows of $30.1 billion after tepid May inflows of $1.4 billion.   

Investors seem to have renewed their faith in municipal-bond funds and are increasingly comfortable taking on risk in search of yield, Morningstar said. High-yield muni bond funds took in $6.7 billion through June, as the category’s median return was 6.7% in the first half of the year.   

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The balanced asset class, which includes primarily allocation funds, saw redemptions of $890 million in June, its first month of outflows in 2012. Some of the world-allocation category’s most prominent offerings suffered outflows; BlackRock Global Allocation, IVA Worldwide, and Ivy Asset Strategy lost $460 million, $232 million, and $171 million, respectively.   

Taxable-bond funds saw inflows increase by more than $3.2 billion over last month to $10.9 billion. U.S.-stock funds remained in familiar territory with outflows of $8.5 billion, while international-stock funds, driven by inflows to diversified emerging-markets funds, collected $4.8 billion.   

DoubleLine Total Return Bond led all funds in June with inflows of $2.1 billion. It leads all funds over the trailing 12 months, too, with $18.1 billion in new assets.    

The complete report is here.

 

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