EX-99.1 6 d564809dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO   

 

Press Release

 

  

 

Invesco expands its ability to meet client needs by completing its acquisition of Guggenheim Investments’ ETF business

  

 

BulletShares® defined-maturity ETFs’ management fee reduced to 10 bps to provide better value and address a growing market segment

Media contacts

 

Invesco    Guggenheim Partners
Jeaneen Terrio    Gerard Carney
212.278.9205    310.871.9208
Jeaneen.terrio@invesco.com    gerard.carney@guggenheimpartners.com

Atlanta, April 9, 2018 – Invesco Ltd. (NYSE: IVZ) announced today that it has completed its previously announced acquisition of Guggenheim Investments’ exchange-traded funds (ETF) business, which consists of $38.8 billion of assets under management (as of Feb. 28, 2018).

Strengthening our ETF capabilities for growth

The acquisition strengthens Invesco’s market-leading ETF capabilities1 as well as the firm’s efforts to meet the needs of institutional and retail clients in the US and across the globe, which will contribute further to the growth and long-term success of the business. With this acquisition, Invesco’s ETF assets under management total more than $215.3 billion globally (as of Feb. 28, 2018).

“Since our announcement of the proposed transaction in September 2017, we’ve continued to deliver strong investment performance for our clients and strengthened our business momentum while working toward a successful close of this transaction,” said Martin L. Flanagan, president and CEO of Invesco. “The addition of Guggenheim’s products to Invesco’s strong and diversified range of active, passive and alternative capabilities and expertise will further enhance our ability to meet the investment needs of our clients and deliver the value they seek.”

“We’re excited to add Guggenheim Investments’ complementary ETF business, including well-known products such as BulletShares® and S&P500® Equal Weight ETF (NYSE: RSP), to our existing robust range of factor, smart beta, fixed income and equal weight ETFs,” said Dan Draper, global head of ETFs at Invesco. “This acquisition strengthens our ability to build better and more diversified portfolios through our solutions platform, enhances the range of capabilities available via Jemstep (our advisor-focused digital solution), and helps us better meet the needs of our clients. Our focus continues to be on taking care of clients while leveraging our extensive client-facing distribution force to accelerate the growth of the business.”

The aggregate purchase price paid by Invesco upon completion of the transaction was $1.2 billion.

BulletShares® management fee reduction

Invesco also announced that the management fee for the BulletShares® ETFs that provide defined-maturity exposure through corporate bond investment-grade portfolios has been reduced to 0.10% (from 0.24%), effective today.

“The BulletShares® ETF suite combines the benefits and precision of individual bonds with the advantages of an ETF to save advisors time while providing better client portfolios and outcomes,” added Dan Draper. “Our research and client feedback shows that the market for a convenient, precise and liquid way to ladder bond portfolios for clients is growing rapidly. With more than a decade of ETF experience and compelling BulletShares® pricing, we believe Invesco is providing even better value to existing and future shareholders, and we’re well-positioned to accelerate the growth of this exciting market segment.”


Transitioning the funds

“We’re confident that Invesco is the right partner and platform to deliver continued value for our former ETF shareholders,” said Jerry W. Miller, president of Guggenheim Investments. “With the closing of this transaction, Guggenheim Investments takes an important step forward in our growth strategy to focus on active portfolio management for both institutional and individual clients.”

Effective as of the close of business on April 6, 2018, substantially all of the Guggenheim ETFs have been reorganized into corresponding newly created exchange traded funds of Invesco’s PowerShares family of ETFs in a tax-free transaction. A small number of Guggenheim ETFs are still awaiting shareholder approval to reorganize into PowerShares ETFs, and will be reorganized when that approval is received. The chart below lists the Guggenheim ETFs which have reorganized into Invesco’s PowerShares ETFs.

The following ETFs were reorganized:

PowerShares Exchange-Traded Fund Trust

 

Ticker

  

Target Fund

   CUSIP   

Acquiring Fund

   CUSIP
DJD    Guggenheim Dow Jones Industrial Average Dividend ETF    18383M175    PowerShares Dow Jones Industrial Average Dividend Portfolio    739371409
NFO    Guggenheim Insider Sentiment ETF    18383M209    PowerShares Insider Sentiment Portfolio    739371508
CZA    Guggenheim Mid-Cap Core ETF    18383M720    PowerShares Zacks Mid-Cap Core Portfolio    739371607
CVY    Guggenheim Multi-Asset Income ETF    18383M506    PowerShares Zacks Multi-Asset Income Portfolio    739371706
CSD    Guggenheim S&P Spin-Off ETF    18383M605    PowerShares S&P Spin-Off Portfolio    739371888
WMCR    Wilshire Micro-Cap ETF    18383M308    PowerShares Wilshire Micro- Cap Portfolio    739371870
OEW    Guggenheim S&P 100® Equal Weight ETF    78355W478    PowerShares S&P 100® Equal Weight Portfolio    739371854
RCD    Guggenheim S&P 500® Equal Weight Consumer Discretionary ETF    78355W882    PowerShares S&P 500® Equal Weight Consumer Discretionary Portfolio    739371847
RHS    Guggenheim S&P 500® Equal Weight Consumer Staples ETF    78355W874    PowerShares S&P 500® Equal Weight Consumer Staples Portfolio    739371839
RYE    Guggenheim S&P 500® Equal Weight Energy ETF    78355W866    PowerShares S&P 500® Equal Weight Energy Portfolio    739371821
RSP    Guggenheim S&P 500® Equal Weight ETF    78355W106    PowerShares S&P 500® Equal Weight Portfolio    739371813
RYF    Guggenheim S&P 500® Equal Weight Financials ETF    78355W858    PowerShares S&P 500® Equal Weight Financials Portfolio    739371797
RYH    Guggenheim S&P 500® Equal Weight Health Care ETF    78355W841    PowerShares S&P 500® Equal Weight Health Care Portfolio    739371789
RGI    Guggenheim S&P 500® Equal Weight Industrials ETF    78355W833    PowerShares S&P 500® Equal Weight Industrials Portfolio    739371771
RTM    Guggenheim S&P 500® Equal Weight Materials ETF    78355W825    PowerShares S&P 500® Equal Weight Materials Portfolio    739371763


PowerShares Exchange-Traded Fund Trust

 

Ticker

  

Target Fund

   CUSIP   

Acquiring Fund

   CUSIP
EWRE    Guggenheim S&P 500® Equal Weight Real Estate ETF    78355W486    PowerShares S&P 500® Equal Weight Real Estate Portfolio    739371755
RYT    Guggenheim S&P 500® Equal Weight Technology ETF    78355W817    PowerShares S&P 500® Equal Weight Technology Portfolio    739371748
RYU    Guggenheim S&P 500® Equal Weight Utilities ETF    78355W791    PowerShares S&P 500® Equal Weight Utilities Portfolio    739371730
RPG    Guggenheim S&P 500® Pure Growth ETF    78355W403    PowerShares S&P 500® Pure Growth Portfolio    739371722
RPV    Guggenheim S&P 500® Pure Value ETF    78355W304    PowerShares S&P 500® Pure Value Portfolio    739371714
XLG    Guggenheim S&P 500® Top 50 ETF    78355W205    PowerShares S&P 500® Top 50 Portfolio    739371698
EWMC    Guggenheim S&P MidCap 400® Equal Weight ETF    78355W577    PowerShares S&P MidCap 400® Equal Weight Portfolio    739371680
RFG    Guggenheim S&P MidCap 400® Pure Growth ETF    78355W601    PowerShares S&P MidCap 400® Pure Growth Portfolio    739371672
RFV    Guggenheim S&P MidCap 400® Pure Value ETF    78355W502    PowerShares S&P MidCap 400® Pure Value Portfolio    739371664
EWSC    Guggenheim S&P SmallCap 600® Equal Weight ETF    78355W585    PowerShares S&P SmallCap 600® Equal Weight Portfolio    739371656
RZG    Guggenheim S&P SmallCap 600® Pure Growth ETF    78355W809    PowerShares S&P SmallCap 600® Pure Growth Portfolio    739371649
RZV    Guggenheim S&P SmallCap 600® Pure Value ETF    78355W700    PowerShares S&P SmallCap 600® Pure Value Portfolio    739371631

PowerShares Exchange-Traded Fund Trust II

 

     

Ticker

  

Target Fund

   CUSIP   

Acquiring Fund

   CUSIP
LVL    Guggenheim S&P Global Dividend Opportunities Index ETF    18383M860    PowerShares S&P Global Dividend Opportunities Index Portfolio    73936Q660
TAO    Guggenheim China Real Estate ETF    18383Q861    PowerShares China Real Estate Portfolio    73936Q637
FRN    Guggenheim Frontier Markets ETF    18383Q838    PowerShares Frontier Markets Portfolio    73936Q611
HGI    Guggenheim International Multi-Asset Income ETF    18383Q804    PowerShares Zacks International Multi-Asset Income Portfolio    73936Q595
CUT    Guggenheim MSCI Global Timber ETF    18383Q879    PowerShares MSCI Global Timber Portfolio    73936Q587
SEA    Guggenheim Shipping ETF    18383Q796    PowerShares Shipping Portfolio    73936Q579
YAO    Guggenheim China All-Cap ETF    18385P101    PowerShares China All-Cap Portfolio    73936Q561
CGW    Guggenheim S&P Global Water Index ETF    18383Q507    PowerShares S&P Global Water Index Portfolio    73936Q546
EWEM    Guggenheim MSCI Emerging Markets Equal Country Weight ETF    78355W536    PowerShares MSCI Emerging Markets Equal Country Weight Portfolio    73936Q512
GSY    Guggenheim Ultra Short Duration ETF    18383M654    PowerShares Ultra Short Duration Portfolio    73935B797
GTO    Guggenheim Total Return Bond ETF    18385P705    PowerShares Total Return Bond Portfolio    73935B789


PowerShares Exchange-Traded Self-Indexed Fund Trust

 

Ticker

  

Target Fund

   CUSIP   

Acquiring Fund

   CUSIP
BSCI    Guggenheim BulletShares 2018 Corporate Bond ETF    18383M530    PowerShares BulletShares 2018 Corporate Bond Portfolio    73939W102
BSJI    Guggenheim BulletShares 2018 High Yield Corporate Bond ETF    18383M381    PowerShares BulletShares 2018 High Yield Corporate Bond Portfolio    73939W201
BSCJ    Guggenheim BulletShares 2019 Corporate Bond ETF    18383M522    PowerShares BulletShares 2019 Corporate Bond Portfolio    73939W300
BSJJ    Guggenheim BulletShares 2019 High Yield Corporate Bond ETF    18383M373    PowerShares BulletShares 2019 High Yield Corporate Bond Portfolio    73939W409
BSCK    Guggenheim BulletShares 2020 Corporate Bond ETF    18383M514    PowerShares BulletShares 2020 Corporate Bond Portfolio    73939W508
BSJK    Guggenheim BulletShares 2020 High Yield Corporate Bond ETF    18383M365    PowerShares BulletShares 2020 High Yield Corporate Bond Portfolio    73939W607
BSCL    Guggenheim BulletShares 2021 Corporate Bond ETF    18383M266    PowerShares BulletShares 2021 Corporate Bond Portfolio    73939W706
BSJL    Guggenheim BulletShares 2021 High Yield Corporate Bond ETF    18383M225    PowerShares BulletShares 2021 High Yield Corporate Bond Portfolio    73939W805
BSCM    Guggenheim BulletShares 2022 Corporate Bond ETF    18383M258    PowerShares BulletShares 2022 Corporate Bond Portfolio    73939W888
BSJM    Guggenheim BulletShares 2022 High Yield Corporate Bond ETF    18383M217    PowerShares BulletShares 2022 High Yield Corporate Bond Portfolio    73939W870
BSCN    Guggenheim BulletShares 2023 Corporate Bond ETF    18383M241    PowerShares BulletShares 2023 Corporate Bond Portfolio    73939W862
BSJN    Guggenheim BulletShares 2023 High Yield Corporate Bond ETF    18383M183    PowerShares BulletShares 2023 High Yield Corporate Bond Portfolio    73939W854
BSCO    Guggenheim BulletShares 2024 Corporate Bond ETF    18383M233    PowerShares BulletShares 2024 Corporate Bond Portfolio    73939W847
BSJO    Guggenheim BulletShares 2024 High Yield Corporate Bond ETF    18383M134    PowerShares BulletShares 2024 High Yield Corporate Bond Portfolio    73939W839
BSCP    Guggenheim BulletShares 2025 Corporate Bond ETF    18383M191    PowerShares BulletShares 2025 Corporate Bond Portfolio    73939W821
BSCQ    Guggenheim BulletShares 2026 Corporate Bond ETF    18383M126    PowerShares BulletShares 2026 Corporate Bond Portfolio    73939W797
BSCR    Guggenheim BulletShares 2027 Corporate Bond ETF    18386R205    PowerShares BulletShares 2027 Corporate Bond Portfolio    73939W789
DEF    Guggenheim Defensive Equity ETF    18383M878    PowerShares Defensive Equity Portfolio    73939W771
OVLC    Guggenheim U.S. Large Cap Optimized Volatility ETF    18385P804    PowerShares U.S. Large Cap Optimized Volatility Portfolio    73939W763
GMFL    Guggenheim Multi-Factor Large Cap ETF    78355W460    PowerShares Multi-Factor Large Cap Portfolio    73939W755


CurrencyShares transition

The CurrencyShares ETF product line, also part of the Guggenheim transaction, were transitioned to Invesco effective at the close of business on April 6, 2018. These products offer investors and institutions a convenient and cost-effective method of gaining potential investment benefits similar to holding foreign currencies.

 

1  With $176.5 billion in assets under management globally, PowerShares ranked as the fourth-largest ETF provider globally, as of Feb. 28, 2018. Source: PowerShares research. With $55 billion in smart beta assets under management, PowerShares’ smart beta lineup ranked second in the US, as of Jan. 31, 2018. Source: PowerShares research and Bloomberg.

About Invesco Ltd.

Invesco is an independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. NYSE: IVZ; www.invesco.com.

Disclosures

This release may include “forward-looking statements.” Forward-looking statements are not guarantees, and they involve risks, uncertainties and assumptions. There can be no assurance that actual results will not differ materially from our expectations. We caution investors not to rely unduly on any forward-looking statements and urge you to carefully consider the risks described in our most recent Form 10-K and subsequent Forms 10-Q, filed with the Securities and Exchange Commission. You may obtain these reports from the SEC’s website at www.sec.gov. We expressly disclaim any obligation to update the information in any public disclosure if any forward-looking statement later turns out to be inaccurate.

There are risks involved with investing in ETFs, including possible loss of money. Index-based ETFs are not actively managed. Actively managed ETFs do not necessarily seek to replicate the performance of a specified index. Both index-based and actively managed ETFs are subject to risks similar to stocks, including those related to short selling and margin maintenance. Ordinary brokerage commissions apply.

Since ordinary brokerage commissions apply for each buy and sell transaction, frequent trading activity may increase the cost of ETFs.

Diversification does not guarantee a profit or eliminate the risk of loss.

ETFs disclose their full portfolio holdings daily.

The information in this release does not constitute a recommendation of any investment strategy or product for a particular investor. Investors should consult a financial advisor/financial consultant before making any investment decisions.

PowerShares® is a registered trademark of Invesco PowerShares Capital Management LLC, investment adviser. Invesco PowerShares Capital Management LLC (PowerShares) and Invesco Distributors, Inc., ETF distributor, are indirect, wholly owned subsidiaries of Invesco Ltd. Invesco is not affiliated with Guggenheim Funds Distributors, LLC.

Shares are not individually redeemable and owners of the Shares may acquire those Shares from the Funds and tender those shares for redemption to the Funds in Creation Unit aggregations only, typically consisting of 10,000, 50,000, 75,000, 80,000, 100,000, 150,000 or 200,000 Shares.


Before investing, investors should carefully read the prospectus/summary prospectus and carefully consider the investment objectives, risks, charges and expenses. For this and more complete information about the Fund call 800 983 0903 or visit powershares.com for the prospectus/summary prospectus.

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