PowerShares has announced that they will begin trading the PowerShares China A-Share Portfolio (NYSEArca:CHNA) Thursday, October 10, 2013. The PowerShares China A-Share Portfolio (the “Fund”) seeks to provide long-term capital appreciation.
Total Annual Fund Operating Expenses: 0.50%
Principal Investment Strategies
The Fund is an actively managed exchange-traded fund (“ETF”) that seeks to achieve its investment objective by providing exposure to the China “A-Shares” market using a quantitative, rules-based investment strategy. Under normal circumstances, the Fund will invest in a combination of (i) futures contracts (the “Futures”) on the FTSE China A50 Index (the “Benchmark”); (ii) ETFs that provide exposure to the largest companies within the China A-Shares market (“Underlying ETFs”); and (iii) A-Shares, to the extent permissible under Chinese law. The Fund expects to invest its remaining assets in U.S. government securities, money market instruments, cash and cash equivalent securities (i.e., corporate commercial paper) to collateralize its investments in the Futures or for other purposes. The Fund is actively managed by Invesco PowerShares Capital Management LLC (the “Adviser”) and is not obligated to invest in the instruments included in the Benchmark or to track the performance of the Benchmark or of any index. Although the Fund seeks to exceed the performance of the Benchmark, there can be no assurance that the Fund will do so at any time.
The Benchmark is comprised of China’s domestic market A-Shares, which are