PowerShares filed paperwork with the SEC for a “PowerShares S&P Bank Loan Portfolio” ETF. They did not specify a trading symbol or expense ratio in the initial filing. The Fund will seek investment results that correspond (before fees and expenses) generally to the price and yield of an index called the S&P/LSTA U.S. Leveraged Loan 100 Index. The S&P/LSTA U.S. Leveraged Loan 100 Index is designed to reflect the largest facilities in the leveraged loan market. It mirrors the market-weighted performance of the largest institutional leveraged loans based upon market weightings, spreads, and interest payments. The index consists of 100 loan facilities drawn from a larger benchmark, the S&P/LSTA (Loan Syndications and Trading Association) Leveraged Loan Index (LLI).
Principal Investment Strategies
The Fund will normally invest at least 80% of its total assets in bank loans. The Fund will normally invest at least 80% of its total assets in the securities that comprise the Underlying Index. The Underlying Index is compiled, maintained and calculated by Standard & Poor’s. The Underlying Index is designed to track the market-weighted performance of the largest institutional leveraged loans based on market weightings, spreads and interest payments. A leveraged loan is a loan that is rated below investment grade quality or is unrated but deemed to be of comparable quality. All or a significant portion of the loans in which the Fund will invest are expected to be below investment grade quality. The Fund may also invest up to 20% of its assets in closed-end funds that invest all or a portion of their assets in bank loans.
The Fund does not purchase all of the securities in the Underlying Index. Instead, Invesco PowerShares Capital Management, LLC, the Fund’s investment adviser (the “Adviser”), utilizes a “sampling” methodology in seeking to achieve the Fund’s investment objective. As of the date of this Prospectus, there were 100 loans included in the Underlying Index.
Concentration Policy. The Fund will invest 25% or more of the value of its total assets in securities of issuers in an industry or group of industries to the extent that the Underlying Index concentrates in an industry or group of industries.
For the full filing click: HERE
For more index information click: HERE