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

April 09, 2018

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

ATLANTA, April 9, 2018 /PRNewswire/ -- 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).

Invesco Ltd. logo. (PRNewsFoto/Invesco, Chris Wilson)

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

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 6

00® 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

 

PowerShares Actively Managed

Ticker

Target Fund

CUSIP

Acquiring Fund

CUSIP

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 2

023 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.

Cision View original content with multimedia:http://www.prnewswire.com/news-releases/invesco-expands-its-ability-to-meet-client-needs-by-completing-its-acquisition-of-guggenheim-investments-etf-business-300626135.html

SOURCE Invesco Ltd.

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

Contacts

Brandon Burke

Investor Relations Director
  • Email
  • | +1 (404) 439-3468

If your inquiry relates to Invesco Mortgage Capital ("IVR") please contact us at
+1-800-241-5477, or email contactus@invescomortgage
capital.com.

Invesco Global Headquarters

Two Peachtree Pointe
1555 Peachtree Street, N.E.
Suite 1800
Atlanta, Georgia 30309 (USA)