PowerShares Files For PowerShares Global Macro Portfolio ETF
PowerShares has filed paperwork with the SEC for a “PowerShares Global Macro Portfolio.” The PowerShares Global Macro Portfolio (the “Fund”) is an actively managed exchange-traded fund (“ETF”) that seeks positive total returns. They did not specify a trading symbol or expense ratio in the initial filing.
Principal Investment Strategies
The Fund seeks to achieve its investment objective by investing directly in commodity, foreign exchange and financial derivatives, and indirectly in commodities. The Fund uses a quantitative, rules-based strategy that is designed to provide returns that correspond to the performance of the [ ] (the “Benchmark”).
The Benchmark tracks the performance of global futures contracts that reflect price movements from a globally diversified portfolio of 37 commodities, foreign exchange and financial futures contracts. The Benchmark is designed to capture the income and gains that are derived from rising or declining price trends in these contracts. [ ], the administrator of the Benchmark, groups the contracts into what it believes are the six most significant sectors traded in that portfolio. The Benchmark is sector neutral and does not take into account any one individual constituent futures contract. The contracts are represented on either a “long” or “short” basis depending on historical price trends.
The Fund’s commodity and foreign exchange investments generally are limited to exchange-traded futures contracts, forward currency contracts and swap transactions that provide exposure to commodity and currency returns. The Fund’s financial derivatives investments include exchange-traded financial futures contracts on interest rates, equity indices and financial instruments. The Fund also may invest in money market instruments and structured notes based on commodities, and it may enter into repurchase agreements.
[The Fund seeks to gain exposure to commodity markets, in whole or in part, through investments in a subsidiary organized in the Cayman Islands (the “Subsidiary”). The Subsidiary will be wholly-owned and controlled by the Fund. The Fund’s investment in the Subsidiary may not exceed 25% of the Fund’s total assets at each quarter end of the Fund’s fiscal year. The Fund’s investment in the Subsidiary is expected to provide the Fund with exposure to commodity returns within the limits of the federal tax requirements applicable to investment companies, such as the Fund. Except as noted, references to the investment strategies and risks of the Fund include the investment strategies and risks of the Subsidiary.]
For the complete filing click: HERE