Download CLTL - PowerShares Treasury Collateral Portfolio fund in

CLTL
Underlying
index:
ICE U.S. Treasury
Short Bond Index
Inception:
January 12, 2017
Weighting
methodology:
Market value weighted
Ticker:
CLTL
Intraday NAV:
CLTLIV
Exchange:
NYSE
Expense ratio:
0.08%
Fund in Focus
PowerShares Treasury Collateral Portfolio
Key features
Consider key features of CLTL:
•
Serves as an efficient collateral pledge to cover margin requirements on derivatives
•
Enhanced daily liquidity
•
Tenured portfolio management team
Serves as an efficient collateral pledge to cover margin requirements on derivatives
CLTL tracks the ICE U.S. Treasury Short Bond Index, providing exposure to a basket of Treasury
securities with a maturity of one year or less. Currently, Treasury Bills are one of the most common
types of instruments used by institutions as a collateral pledge to cover margin requirements on
derivatives. However, there may be operational challenges with pledging Treasury Bills as collateral,
such as dealing with multiple CUSIPs and rolling over frequently due to their short maturities.
CLTL is wrapped in an efficient ETF vehicle which addresses potential challenges that come with
using Treasury Bills as collateral pledge. Unlike Treasury Bills, CLTL has a single CUSIP and does
not need to roll over.
Unlike other ETFs, CLTL will have
two NAV strikes to offer enhanced
daily liquidity.
Enhanced daily liquidity
CLTL is designed to provide same-day settlement for creation/redemption trades in the primary
market. Unlike other ETFs, CLTL will have two net asset value (NAV) strikes:
1. The traditional end of day NAV strike
2. An earlier strike with a cut-off time of 12:00 p.m. ET for setting the NAV and receiving creation/
redemption orders
- For orders submitted before 12:00 p.m. ET, CLTL expects to effect deliveries of creation
units or redemption proceeds by 3:00 p.m. ET on that day (T+0).
- For orders received after the 12:00 p.m. ET, CLTL expects to effect deliveries of creation units
or redemption proceeds on the next business day (T+1).
As Treasury Bills settle T+1, the option of settling the fund’s shares T+0 makes CLTL an attractive
collateral vehicle, in our opinion.
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Tenured portfolio management team
CLTL is managed by the Invesco Global Liquidity Group. The team, based in Atlanta, consists of 16
research and investment professionals and has $84.0 billion in AUM (as of December 31, 2016).
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In the changing money market
regulatory environment, CLTL
affords an alternative collateral
vehicle in an efficient ETF.
Invesco Global Liquidity Group has a 30-year history with a disciplined investment approach that
utilizes two separate teams — portfolio management and credit research.
Two teams, one disciplined approach
Top Down: Portfolio Management - Manage Portfolio Exposure
Economic
Fundamentals
Market
Technicals
Client
Liquidity Needs
Portfolio
Diversification
Regulatory
Constraints
Security Specific
Analysis
Event Risk
Optimal portfolio
Issuer Credit
Analysis
Industry Outlook
and Trends
Third Party
Research
Bottom Up: Credit Research - Monitor Minimal Credit Risk
For illustrative purposes only. Diversification does not guarantee a profit or eliminate the risk of loss.
Not FDIC Insured | May Lose Value | No Bank Guarantee
CLTL is offered by PowerShares by Invesco, an ETF industry innovator offering access to a full spectrum of income
solutions. Contact us to learn more:
Financial Advisors
800.983.0903
Registered Investment Advisors and Institutions
866.406.5693
Beta is a measure of risk representing how a security is
expected to respond to general market movements.
than are in the underlying Index, and may be subject to
greater volatility.
Smart Beta represents an alternative and selection
index based methodology that seeks to outperform a
benchmark or reduce portfolio risk, or both in active or
passive vehicles. Smart beta funds may underperform
cap-weighted benchmarks and increase portfolio risk.
Risk Information
There are risks involved with investing in ETFs,
including possible loss of money. Shares are not
actively managed and are subject to risks similar to
those of stocks, including those regarding short selling
and margin maintenance requirements. Ordinary
brokerage commissions apply. The Fund’s return may
not match the return of the underlying index. The Fund
is subject to certain other risks. Please see the current
prospectus for more information regarding the risk
associated with an investment in the Fund.
Investments focused in a particular industry or sector are
subject to greater risk, and are more greatly impacted by
market volatility, than more diversified investments.
Debt securities are affected by changing interest
rates and changes in their effective maturities and
credit quality.
Treasury securities are backed by the full faith and
credit of the US government as to the timely payment
of principal and interest.
The Fund’s use of a representative sampling approach
will result in its holding a smaller number of bonds
P-CLTL-FIF-1
US1339
02/17
© 2017 Invesco PowerShares Capital Management LLC
powershares.com 800 983 0903
@PowerShares
The Fund is non-diversified and may experience greater
volatility than a more diversified investment.
Derivatives may be more volatile and less liquid than
traditional investments and are subject to market, interest
rate, credit, leverage, counterparty and management
risks. An investment in a derivative could lose more than
the cash amount invested.
The Fund may engage in frequent trading of its portfolio
securities in connection with the rebalancing or
adjustment of the underlying index.
The Fund currently intends to effect creations and
redemptions principally for cash, rather than principally
in-kind because of the nature of the Fund’s investments.
As such, investments in the Fund may be less tax efficient
than investments in ETFs that create and redeem in-kind.
The Fund is not a money market fund and does not
attempt to maintain a stable net asset value (“NAV”).
During periods of reduced market volatility or in the
absence of readily available market quotations for the
holdings of the Fund, the ability of the Fund to value its
holdings becomes more difficult and the judgment of the
Sub-Adviser may play a greater role in the valuation of
the Fund’s holdings due to reduced availability of reliable
objective pricing data.
Shares are not individually redeemable and owners of
the Shares may acquire those Shares from the Fund
and tender those Shares for redemption to the Fund in
Creation Unit aggregations only, typically consisting of
10,000 Shares.
Note: Not all products, materials or services available at
all firms.
PowerShares® is a registered trademark of Invesco
PowerShares Capital Management LLC (PowerShares).
Invesco PowerShares and Invesco Distributors, Inc. are
indirect, wholly owned subsidiaries of Invesco Ltd.
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.