Lower management fee at PowerShares

Toronto-based Invesco PowerShares Capital Management LLC has reduced the management fee on PowerShares Senior Loan (CAD Hedged) Index ETF to 0.8%, a drop of 0.1%. The ETF, which was one of the first senior-loan ETFs, provides access to an asset class that historically has delivered higher yield than other fixed-income securities of equal or higher credit quality and offers investors an added measure of security against borrower default. In addition, the low duration of senior loans may help to reduce a portfolio’s overall interest rate sensitivity. The ETF seeks to replicate, before fees and expenses, the performance of the S&P/LSTA (Loan Syndications and Trading Association) U.S. leveraged loan 100 index (C$-hedged). The index gives investors exposure to the largest 100 loan facilities drawn from a larger benchmark – the S&P/LSTA leveraged loan index. PowerShares has lowered the management fee as part of a continuing effort to deliver low-cost access to innovative asset classes.

(cohara@investmentexecutive.com).