By
STOCK EXCHANGE ANNOUNCEMENT
For Immediate Release 20 January 2014
PowerShares Global Funds Ireland plc
(the "Company")
PowerShares EQQQ Fund
PowerShares FTSE RAFI US 1000 Fund
PowerShares FTSE RAFI Developed 1000 Fund
PowerShares FTSE RAFI Europe Fund
PowerShares FTSE RAFI Developed Europe Mid-Small Fund
PowerShares Global Listed Private Equity Fund
PowerShares NASDAQ OMX Global Water Fund
PowerShares Global Clean Energy Fund
PowerShares Dynamic US Market Fund
PowerShares FTSE RAFI Asia Pacific Ex-Japan Fund
PowerShares FTSE RAFI Emerging Markets Fund
PowerShares FTSE RAFI All-World 3000 Fund
PowerShares FTSE RAFI UK 100 Fund
PowerShares FTSE RAFI Switzerland Fund
PowerShares FTSE RAFI Italy 30 Fund
PowerShares Global Agriculture NASDAQ OMX Fund
PowerShares FTSE RAFI Hong Kong China Fund
PowerShares Middle East North Africa NASDAQ OMX Fund
PowerShares EuroMTS Cash 3 Months Fund
(each a "Fund" together the "Funds")
Re: Changes to the Fund
The Directors of the Company wish to announce certain changes affecting the
Company and the Funds which are due to take effect in or around 17 February
2014 (the "Effective Date").
1. AMENDMENTS TO THE POWERSHARES FTSE RAFI EMERGING MARKETS FUND AND
POWERSHARES FTSE RAFI ALL-WORLD 3000 FUND ONLY
(together the "Physical Funds")
For each Physical Fund, Invesco PowerShares Capital Management LLC, the
Investment Manager, currently uses the synthetic replication method of the
`index-tracking' strategy. The Investment Manager achieves the objective of the
Physical Funds by replicating the total return of the relevant benchmark index
through the use of financial derivative instruments ("FDI"), namely
over-the-counter swap arrangements.
Presently, where it is not possible to gain exposure to the relevant benchmark
index through the use of FDIs, such as total return swaps, or if the Investment
Manager otherwise believes it to be in the best interests of the Physical
Funds, the Investment Manager may seek to gain the relevant benchmark index
exposure by directly holding the constituents of the Index (physical
replication method).
The Directors intend that, with effect from 1 April 2014 (the "Implementation
Date"), each of the Physical Funds will use the physical replication method as
the only `index-tracking' strategy. From the Implementation Date the Physical
Funds will, so far as possible and practicable, hold all of the shares in the
relevant benchmark index in their respective weightings in that benchmark
index, subject to the Investment Restrictions. During the period from the
Effective Date to the Implementation Date, the Physical Funds will continue to
use the synthetic replication method.
These changes are being implemented because of the recent evolution of the
Company's portfolio team, which is able to provide replication by holding
directly the component of the indices. The Directors, therefore, believe that
the Company is now in a position to provide the Shareholders with a clearer and
easier understanding of the Physical Fund portfolios by applying the physical
replication method to track the index. There will be no fee increase as a
result of these changes.
The Prospectus already provides the flexibility to allow the Company to use the
physical replication method as an `index-tracking' strategy. However, the
Prospectus is being updated to reflect the focus on the physical replication.
With effect from the Implementation Date, Invesco Global Asset Management
Limited, the Manager, will commence accepting subscriptions and redemptions in
specie in respect of the Physical Funds.
2. AMENDMENTS APPLICABLE TO THE POWERSHARES FTSE RAFI EMERGING MARKETS FUND,
POWERSHARES FTSE RAFI ALL-WORLD 3000 FUND, POWERSHARES FTSE RAFI US 1000 FUND,
POWERSHARES FTSE RAFI UK 100 FUND, POWERSHARES FTSE RAFI EUROPE FUND,
POWERSHARES FTSE RAFI ITALY 30 FUND, POWERSHARES FTSE RAFI HONG KONG CHINA
FUND, POWERSHARES FTSE RAFI DEVELOPED 1000 FUND, POWERSHARES FTSE RAFI
DEVELOPED EUROPE MID-SMALL FUND, AND POWERSHARES FTSE RAFI ASIA PACIFIC
EX-JAPAN FUND AND POWERSHARES FTSE RAFI SWITZERLAND FUND ONLY
(together the "Net Indices Funds")
The Directors intend, with effect from the Effective Date, to change the
relevant benchmark indices currently being tracked by the Net Indices Funds.
The benchmark indices currently being tracked are gross indices (i.e. gross of
income and withholding tax). It is proposed that the benchmark indices will be
moved to net indices (i.e. net of income and withholding tax). The index
strategy and constituents of each benchmark index will remain the same.
The change to the benchmark indices will not result in any change to the way
the Net Indices Funds are managed.
These changes are being implemented because the Directors believe that the
proposed new benchmark indices will be of greater benefit to the Shareholders
of the Net Indices Funds than the existing benchmark indices. The new benchmark
indices increase the accuracy of reporting tracking error as these reflect the
tax withholding to which the Funds are subjected.
3. AMENDMENTS APPLICABLE TO THE POWERSHARES EUROMTS CASH 3 MONTHS FUND and the
PowerShares Middle East North Africa NASDAQ OMX FUND ONLY
The Directors intend to amend the settlement date for cash redemptions. The
settlement date for the PowerShares EuroMTS Cash 3 Months Fund will be changed
from one Business Day to two Business Days after the relevant Valuation Date.
The settlement date for the PowerShares Middle East North Africa NASDAQ OMX
Fund will be changed from two Business Days to three Business Days after the
relevant Valuation Date.
4. AMENDMENTS APPLICABLE TO THE POWERSHARES EQQQ UCITS FUND ONLY
The Directors intend with effect from the Effective Date, to change the name of
the PowerShares EQQQ UCITS Fund to PowerShares EQQQ Nasdaq-100 UCITS ETF. The
proposed new name better reflects the benchmark index being tracked.
In addition all references to the proposed listing on the Stock Exchange of
Hong Kong Limited have been removed, as the Directors have determined it is not
in the best interests of the PowerShares EQQQ Fund to proceed with this
listing.
5. AMENDMENTS APPLICABLE TO THE POWERSHARES FTSE RAFI DEVELOPED EUROPE
MID-SMALL FUND ONLY
The Directors intend with effect from the Effective Date, to change the name of
the PowerShares FTSE RAFI Developed Europe Mid-Small Fund to PowerShares FTSE
RAFI Europe Mid-Small UCITS ETF. The proposed new name better reflects the
benchmark index being tracked.
6. AMENDMENTS APPLICABLE TO THE POWERSHARES GLOBAL AGRICULTURE NASDAQ OMX FUND,
POWERSHARES MIDDLE EAST NORTH AFRICA NASDAQ OMX FUND AND POWERSHARES NASDAQ OMX
GLOBAL WATER FUND ONLY
(together the "Former NASDAQ OMX Funds")
The Directors intend with effect from the Effective Date, to remove the words
"NASDAQ OMX" from the names of the Former NASDAQ OMX Funds. The proposed new
names better reflect the benchmark indices being tracked.
7. GENERAL AMENDMENTS TO THE PROSPECTUS AND SUPPLEMENTS, APPLICABLE TO ALL
FUNDS
The Directors intend, with effect from the Effective Date, to make the
following changes to the Company's Prospectus:
i. The Prospectus and Supplements will be amended generally and with certain
technical updates reflecting the requirements of the European Securities
and Markets Authority ("ESMA") Guidelines on ETFs and other UCITS Issues of
December dated 18 December 2012 (as amended). These updates include
additional disclosures in relation to the use of FDI for efficient
portfolio management purposes and in each Supplement an Anticipated
Tracking Error section will be included to highlight anticipated level of
tracking error in normal market conditions.
The naming convention of each Fund will change so that each Fund name ends with
"UCITS ETF".
ii. The list of directorships will be updated to reflect recent changes to the
Board of Directors, whereby Mr Benjamin T. Fulton resigned as a Director
and Mr Douglas J. Sharp was appointed as a Director.
iii. The Prospectus will clarify that the Manager discharges operational
expenses out of the fees it receives.
iv. The taxation section of the Prospectus and all Schedules to the Prospectus
will be updated in line with recent legislative developments (including the
Foreign Account Tax Compliance Act "FATCA") and the re-publication of the
Central Bank's Guidance Notes and UCITS Notices.
v. The UK tax information has been removed from the Prospectus and will be
included in a separate Country Supplement.
Enquiries:
Invesco Asset Management Limited +44 207 065 4529
WF-7434848-2
