PowerShares ETFs

BKLN - PowerShares Senior Loan Portfolio

Alternative - Bank Loans

Product Details

The PowerShares Senior Loan Portfolio (Fund) is based on the S&P/LSTA U.S. Leveraged Loan 100 Index (Index). The Fund will normally invest at least 80% of its total assets in the component securities that comprise the Index. The Index is designed to track the market-weighted performance of the largest institutional leveraged loans based on market weightings, spreads and interest payments. The Fund and the Index are rebalanced and reconstituted bi-annually, in June and December.

as of 03/31/2015 03/31/2015

Performance


   
as of 03/31/2015 03/31/2015
  YTD 1 Year 3 Year 5 Year 10 Year Fund Inception
Index History (%)
S&P/LSTA U.S. Leveraged Loan 100 Index 1.85 1.83 4.58 4.79 N/A 3.97
Barclays U.S. Aggregate Index 1.61 5.72 3.10 4.41 4.93 4.33
Fund History (%)
Fund NAV 1.39 1.17 4.02 N/A N/A 3.57
After Tax Held 0.98 -0.54 2.22 N/A N/A 1.83
After Tax Sold 0.78 0.65 2.31 N/A N/A 2.01
Fund Market Price 1.26 1.00 3.75 N/A N/A 3.40

Monthly Performance

Market returns are based on the midpoint of the bid/ask spread at 4 p.m. ET and do not represent the returns an investor would receive if shares were traded at other times. Performance data quoted represents past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate, and shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than performance data quoted. After-tax returns reflect the highest federal income tax rate but exclude state and local taxes. Fund performance reflects fee waivers, absent which, performance data quoted would have been lower. After Tax Held and After Tax Sold are based on NAV. Returns less than one year are cumulative.


as of 03/31/2015

Growth of $10,000

Data beginning Fund inception and ending 03/31/2015. Fund performance shown at NAV.

An investor cannot invest directly in an index. The results assume that no cash was added to or assets withdrawn from the Index. Index returns do not represent Fund returns. The Index does not charge management fees or brokerage expenses, nor does the Index lend securities, and no revenues from securities lending were added to the performance shown.

Quality Allocations as of 06/30/2015

S&P Moody's
BBB : 14% Baa : 2%
BB : 44% Ba : 52%
B : 33% B : 34%
CCC : 4% Caa : 1%
Not Rated : 5% Not Rated : 9%

as of 06/30/2015 Maturity

Years % of Fund
0 - 1 years 3.34
1 - 5 years 39.77
5 - 10 years 56.90
10 - 15 years 0.00
15 - 20 years 0.00
20 - 25 years 0.00
25 years and over 0.00
as of 06/30/2015

Asset Type Allocation

as of 06/30/2015Top Fixed-Income Holdings | View All

Holding Name Coupon Rate Maturity Date S&P / Moody's Rating† Weight
ENERGY FUTURE INTERMEDIATE 4.25% 06/19/2016 BB/Ba3 1.96%
Hilton Worldwide Finance, LLC 3.50% 10/26/2020 BBB-/Ba2 1.94%
PETSMART INC FRN 4.25% 03/11/2022 BB-/Ba3 1.88%
Fortescue Metal 3.75% 06/30/2019 BBB/Ba1 1.85%
H.J. HEINZ COMP 3.25% 06/05/2020 BB+/Ba1 1.81%
Albertson's LLC 5.50% 08/25/2021 BB-/Ba3 1.70%
ASURION CORP 5.00% 05/24/2019 B/Ba3 1.68%
Avago Tech. Finance Pte Ltd. 3.75% 05/06/2021 BBB-/Ba1 1.64%
VALEANT PHARMACEUTICALS FRN 4.00% 04/01/2022 BB+/Ba1 1.58%
DaVita HealthCare Partners Inc. 3.50% 06/24/2021 BB/Ba1 1.54%

Holdings are subject to change and are not buy/sell recommendations.

Distributions | View All | Distribution Information

Ex-Date Record Date Pay Date $/
Share
Ordinary Income Short Term Gains Long Term Gains Return of Capital
06/15/2015 06/17/2015 06/30/2015 0.07537 0.07537 - - -
05/15/2015 05/19/2015 05/29/2015 0.07440 0.07440 - - -
04/15/2015 04/17/2015 04/30/2015 0.07346 0.07346 - - -
03/13/2015 03/17/2015 03/31/2015 0.07304 0.07304 - - -
02/13/2015 02/18/2015 02/27/2015 0.07389 0.07389 - - -
01/15/2015 01/20/2015 01/30/2015 0.07500 0.07500 - - -
12/15/2014 12/17/2014 12/31/2014 0.07600 0.07600 - - -
11/14/2014 11/18/2014 11/28/2014 0.08000 0.08000 - - -
10/15/2014 10/17/2014 10/31/2014 0.08928 0.08928 - - -
09/15/2014 09/17/2014 09/30/2014 0.08569 0.08569 - - -
08/15/2014 08/19/2014 08/29/2014 0.08380 0.08380 - - -
07/15/2014 07/17/2014 07/31/2014 0.08224 0.08224 - - -
06/13/2014 06/17/2014 06/30/2014 0.08116 0.08116 - - -
05/15/2014 05/19/2014 05/30/2014 0.08102 0.08102 - - -
04/15/2014 04/17/2014 04/30/2014 0.08025 0.08025 - - -
03/14/2014 03/18/2014 03/31/2014 0.08259 0.08259 - - -
02/14/2014 02/19/2014 02/28/2014 0.08348 0.08348 - - -
01/15/2014 01/17/2014 01/31/2014 0.08409 0.08409 - - -
12/13/2013 12/17/2013 12/31/2013 0.08406 0.08406 - - -
11/15/2013 11/19/2013 11/29/2013 0.08434 0.08434 - - -
10/15/2013 10/17/2013 10/31/2013 0.08300 0.08300 - - -
09/13/2013 09/17/2013 09/30/2013 0.08300 0.08300 - - -
08/15/2013 08/19/2013 08/30/2013 0.09000 0.09000 - - -
07/15/2013 07/17/2013 07/31/2013 0.09050 0.09050 - - -
06/14/2013 06/18/2013 06/28/2013 0.09012 0.09012 - - -
05/15/2013 05/17/2013 05/31/2013 0.09213 0.09213 - - -
04/15/2013 04/17/2013 04/30/2013 0.09536 0.09536 - - -
03/15/2013 03/19/2013 03/28/2013 0.09570 0.09570 - - -
02/15/2013 02/20/2013 02/28/2013 0.10025 0.10025 - - -
01/15/2013 01/17/2013 01/31/2013 0.10642 0.10642 - - -
12/14/2012 12/18/2012 12/31/2012 0.09750 0.09750 - - -
11/15/2012 11/19/2012 11/30/2012 0.10027 0.10027 - - -
10/15/2012 10/17/2012 10/31/2012 0.10307 0.10307 - - -
09/14/2012 09/18/2012 09/28/2012 0.09115 0.09115 - - -
08/15/2012 08/17/2012 08/31/2012 0.09103 0.09103 - - -
07/13/2012 07/17/2012 07/31/2012 0.10412 0.10412 - - -
06/15/2012 06/19/2012 06/29/2012 0.09983 0.09983 - - -
05/15/2012 05/17/2012 05/31/2012 0.10476 0.10476 - - -
04/13/2012 04/17/2012 04/30/2012 0.10697 0.10697 - - -
03/15/2012 03/19/2012 03/30/2012 0.10100 0.10100 - - -
02/15/2012 02/17/2012 02/29/2012 0.10120 0.10120 - - -
01/13/2012 01/18/2012 01/31/2012 0.09984 0.09984 - - -
12/15/2011 12/19/2011 12/30/2011 0.11592 0.11592 - - -
11/15/2011 11/17/2011 11/30/2011 0.10292 0.10292 - - -
10/14/2011 10/18/2011 10/31/2011 0.11557 0.11557 - - -
09/15/2011 09/19/2011 09/30/2011 0.08600 0.08600 - - -
08/15/2011 08/17/2011 08/31/2011 0.08317 0.08317 - - -
07/15/2011 07/19/2011 07/29/2011 0.07568 0.07568 - - -
06/15/2011 06/17/2011 06/30/2011 0.07726 0.07726 - - -
05/13/2011 05/17/2011 05/31/2011 0.07600 0.07600 - - -
04/15/2011 04/19/2011 04/29/2011 0.07357 0.07357 - - -

Frequency Distribution of Discounts & Premiums

    Bid/Ask MidPoint Above NAV Bid/Ask Midpoint Below NAV
Quarter
Ending
Days 0.50-
0.99%
1.00-
1.99%
>2.00% 0.50-
0.99%
1.00-
1.99%
>2.00%
03/31/2015 61 0 0 0 1 0 0
12/31/2014 64 0 0 0 0 0 0
09/30/2014 64 0 0 0 1 0 0
06/30/2014 63 0 0 0 0 0 0
Year Ended 2014 252 0 0 0 1 0 0

Fund Inception: 03/03/2011

Shareholders may pay more than net asset value when they buy Fund shares and receive less than net asset value when they sell those shares, because shares are bought and sold at current market prices. Performance data quoted represents past performance, which is not a guarantee of future results.


The PowerShares Senior Loan Portfolio is the first senior loan exchange-traded fund (ETF) and seeks investment results that correspond (before fees and expenses) generally to the price and yield of the S&P/LSTA U.S. Leveraged Loan 100 Index (Index). The Fund will normally invest at least 80% of its total assets in the securities that comprise the Index. The Index is designed to track the market-weighted performance of the largest institutional leveraged loans based on market weightings, spreads and interest payments. The Fund may also invest up to 20% of its assets in closed-end funds that invest all or a portion of their assets in senior loans and in other liquid instruments such as high-yield securities.

The PowerShares Senior Loan Portfolio:

  • Is the first senior loan ETF.
  • Seeks to track the industry's leading benchmark.
  • Provides low cost,1 broad exposure to the senior loan market.
  • May help to mitigate a portfolio's interest rate risk.
  • Offers the benefits of the ETF structure including intra-day liquidity2 and transparency3.
  • Offers the potential for monthly income.

The S&P/LSTA U.S. Leveraged Loan 100 Index

The S&P/LSTA U.S. Leveraged Loan 100 Index is a market value-weighted index designed to measure the performance of the U.S. leveraged loan market.

The Underlying Index consists of 100 loan facilities drawn from a larger benchmark - the S&P/LSTA (Loan Syndic ations and Trading Association®) Leveraged Loan Index (LLI), which covers more than 1,100 facilities.

The S&P/LSTA U.S. Leveraged Loan 100 Index is designed to reflect the performance of the largest loan facilities in the leveraged loan market. It mirrors the market-weighted performance of the largest institutional leveraged loans based upon market weightings, spreads and interest payments.

Senior loans (also called leveraged loans, syndicated loans, bank loans or floating rate loans) are privately arranged debt instruments that provide capital to a company (usually with a below-investment-grade rating) and are issued by a bank or financial institution and syndicated by a group of banks and institutional investors.

Senior loans are typically issued in conjunction with leveraged buyouts, mergers or acquisitions. A company's payment of interest and repayment of principal on its loan is usually contractually senior to any other form of debt or equity.

Within a company's capital structure, senior loans are typically:

  • Senior to the claims of other creditors.
  • Protected by performance and leverage based covenants.
  • Secured by collateral, such as property, inventory, equipment and intangibles.
The rate paid by a senior secured floating rate loan "floats" at a pre-determined spread over a reference rate, usually the U.S. dollar London Interbank Offered Rate (LIBOR). For example, if three-month LIBOR were yielding 2.50%, a senior secured floating rate loan with a spread of 3.00% would yield LIBOR + 3.00% or 5.50%. The reference rate, in general, is then reset every 30, 60, or 90 days, so that the aggregate rate floats in lockstep with the reference rate.

Senior loans offer the potential to diversify a fixed-income portfolio through both their distinct structure and their historically low correlation to other fixed-income investments.

Senior Loans: Relationship to Other Segments of the Fixed-Income Market

(S&P/LSTA Leveraged Loan Index)

10 Years Ended March 31, 2015 Correlation to Beta vs.
Barclays U.S. Aggregate 0.02 0.05
Barclays U.S. Government: Intermediate -0.42 -1.25
Barclays Capital U.S. Municipal Bond 0.30 0.56
Barclays U.S. Treasury: U.S. TIPS 0.24 0.30
Barclays U.S. Corporate 0.41 0.56
Consumer Price Index 0.19 0.01
S&P 500 Index 0.61 0.34

Source: Bloomberg L.P., as of March 31, 2015. As of the Fund's inception, the index had approximately 28 months of live history. The S&P/LSTA Leveraged Loan Index had more historical data and was used in order to provide more meaningful longer term comparisons.

Why Invesco PowerShares?

Invesco Senior Secured Management, Inc.

As part of Invesco, Invesco PowerShares is able to leverage the wealth of expertise of the Fund's sub-adviser, Invesco Senior Secured Management, Inc. (ISSM).

With US $30 billion under management,4 ISSM is one of the largest institutional managers of senior loans. ISSM developed one of the first institutional senior loan platforms, and ultimately helped foster the maturation of the syndicated senior loan market. ISSM's senior loan platform is also supported by global resources of Invesco, Ltd., one of the world's largest asset management companies.

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

2 Shares are not individually redeemable. Shares may be acquired from and tendered to the Fund in creation unit aggregations only, typically consisting of 100,000 shares.

3 ETFs disclose their full portfolio holdings daily.

4 Source: ISSM, as of March 31, 2015.
Invesco Senior Secured Management, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. It is an indirect, wholly owned subsidiary of Invesco Ltd.

There are risks involved with investing in ETFs, including possible loss of money. Shares are not actively managed and are subject to risks including those regarding short selling and margin maintenance requirements. Ordinary brokerage commissions apply.

A closed-end fund is a publicly traded investment company that raises capital by issuing shares through an initial public offering. The fund is then listed and traded like a stock on a stock exchange.

Correlation indicates the degree of similarity between the historical performance of two investments.

Beta is a measure of relative risk and is the slope of regression.

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 100,000 shares.

Investments in loans are subject to interest rate risk and credit risk. Interest rate risk refers to fluctuations in the value of a loan resulting from changes in the general level of interest rates. Credit risk refers to the possibility that the borrower of a loan will be unable and/or unwilling to make timely interest payments and/or repay the principal on its obligation. There is no organized exchange on which loans are traded and reliable market quotations may not be readily available.

The Fund may invest in non-investment grade, or high-yield, securities (junk bonds). High-yield securities have additional risks, including interest-rate changes, decreased market liquidity and a larger amount of outstanding debt than investment-grade securities.

Proceeds from a current investment of the Fund, both interest payments and principal payments, may be reinvested in instruments that offer lower yields than the current investment due in part to market conditions and the interest rate environment at the time of reinvestment.

The market value of the shares of closed-end investment companies may differ from their NAV. In addition, the shares of closed-end investment companies frequently trade at a discount to their NAV. As an investor in closed-end investment companies, the Fund would bear its ratable share of those closed-end investment companies' fees and expenses, including its investment advisory and administration fees, while continuing to pay its own advisory and administration fees and other expenses. As a result, shareholders will be absorbing duplicate levels of fees with respect to investments in closed-end investment companies.

The Fund's use of a representative sampling approach will result in its holding a smaller number of loans than are in the Underlying Index, and may subject the Fund to greater volatility.

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 non-diversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund.

Investments focused in a particular industry are subject to greater risk, and are more greatly impacted by market volatility than more diversified investments.

Covenants carry counterparty risk and do not guarantee against loss of principal.

The Barclays Capital U.S. Aggregate, Barclays Capital U.S. Government: Intermediate and Barclays Capital U.S. Municipal Bond Indexes are unmanaged indexes considered representative of the U.S. investment-grade, fixed-rate bond market, intermediate maturity U.S. government securities market and the U.S. municipal bond market, respectively. The Barclays U.S. Corporate Index is a broad-based benchmark that measures the investment grade, US dollar-denominated, fixed-rate, taxable corporate bond market. The BofA Merrill Lynch U.S. Corporate Master Index is an unmanaged index of corporate bonds considered representative of the investment-grade corporate bond market.The Barclays Capital U.S. Treasury: U.S. TIPS is an unmanaged index considered representative of the U.S. Treasury inflation protected securities market. The S&P/LSTA Leveraged Loan Index is designed to mirror the investable universe of the $U.S.-denominated leveraged loan market. The S&P 500® Index is an unmanaged index considered representative of the U.S. stock market.

Materials & Resources

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 Risk & Other Information

† Credit ratings are assigned by Nationally Recognized Statistical Rating Organizations based on assessment of the credit worthiness of the underlying bond issuers. The ratings range from AAA (highest) to D (lowest) and are subject to change. Not rated indicates the debtor was not rated, and should not be interpreted as indicating low quality. Futures and other derivatives are not eligible for assigned credit ratings by any NRSRO and are excluded from quality allocations. For more information on rating methodologies, please visit the following NRSRO websites: standardandpoors.com and select "Understanding Ratings" under Rating Resources and moodys.com and select "Rating Methodologies" under Research and Ratings.

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.

Most senior loans are made to corporations with below investment-grade credit ratings and are subject to significant credit, valuation and liquidity risk. The value of the collateral securing a loan may not be sufficient to cover the amount owed, may be found invalid or may be used to pay other outstanding obligations of the borrower under applicable law. There is also the risk that the collateral may be difficult to liquidate, or that a majority of the collateral may be illiquid.

Fixed-income investments are subject to credit risk of the issuer and the effects of changing interest rates. Interest rate risk refers to the risk that bond prices generally fall as interest rates rise and vice versa. An issuer may be unable to meet interest and/or principal payments, thereby causing its instruments to decrease in value and lowering the issuer's credit rating. Junk bonds involve a greater risk of default or price changes due to changes in the issuer's credit quality. The values of junk bonds fluctuate more than those of high quality bonds and can decline significantly over short time periods. Due to anticipated Federal Reserve Board policy changes, there is a risk that interest rates will rise in the near future.

The Fund is non-diversified and may experience greater volatility than a more diversified investment.

Shares of closed-end funds frequently trade at a discount to their net asset value in the secondary market and the net asset value of closed-end fund shares may decrease.

The Fund's use of a representative sampling approach will result in its holding a smaller number of bonds than are in the underlying Index, and may be subject to greater volatility.

The Fund may hold illiquid securities that it may be unable to sell at the preferred time or price and could lose its entire investment in such securities.

Under a participation in senior loans, the fund generally will have rights that are more limited than those of lenders or of persons who acquire a senior loan by assignment. In a participation, the fund assumes the credit risk of the lender selling the participation in addition to the credit risk of the borrower. In the event of the insolvency of the lender selling the participation, the fund may be treated as a general creditor of the lender and may not have a senior claim to the lender's interest in the senior loan. Certain participations in senior loans are illiquid and difficult to value.

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.

Investments focused in a particular industry are subject to greater risk, and are more greatly impacted by market volatility, than more diversified investments.

The Barclays U.S. Aggregate Index is an unmanaged index considered representative of the US investment-grade, fixed-rate bond market.

S&P® is a registered trademark of Standard & Poor's Financial Services LLC (S&P) and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones). These trademarks have been licensed for use by S&P Dow Jones Indices LLC. S&P® and Standard & Poor's® are trademarks of S&P and Dow Jones® is a trademark of Dow Jones. These trademarks have been sublicensed for certain purposes by Invesco PowerShares Capital Management LLC (Invesco PowerShares). The Index is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Invesco PowerShares. The Fund is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P or their respective affiliates and neither S&P Dow Jones Indices LLC, Dow Jones, S&P or their respective affiliates make any representation regarding the advisability of investing in such product(s).

as of 07/02/2015
4:00 PM EST

BKLN
Intraday Stats

  • Last Trade $23.83
  • Current IIV $25.60
  • Change $0.01
  • % Change 0.04%
as of 07/01/2015
  • NAV at market close $23.87
as of 07/01/2015

Fund Yield

  • SEC 30 Day Yield 4.47%
  • Distribution Yield 3.79%
  • 12 Month Yield 3.95%
  • 30-Day SEC Unsubsidized Yield
    as of 07/01/2015
    4.47%
as of 07/01/2015

Prior Close

  • Closing Price $23.82
  • Bid/Ask Midpoint $23.81
  • Bid/Ask Prem/Disc -$0.06
  • Bid/Ask Prem/Disc -0.25%
as of 06/26/2015

Fund Characteristics*

  • Yield to Maturity 5.10%
  • Weighted Avg Maturity 4.74
  • Weighted Avg Coupon 4.56%
  • Days To Reset 22.69
as of 06/30/2015
  • 3 Month LIBOR 0.28%
  • Weighted Avg Price 97.33
*Applies to loan portion only

Fund Details

  • Fund Ticker BKLN
  • CUSIP # 73936Q769
  • ISIN US73936Q7694
  • Intraday NAV BKLNIV
  • Index Ticker SPBDLL
  • Index Provider S&P Dow Jones Indices LLC
  • Management Fee 0.65%
  • Acquired Fund Fees & Expenses 0.01%
  • Total Expense Ratio 0.66%
  • Fee Waiver 0.01%
  • Net Expense Ratio 0.65%
  • Marginable Yes
  • Short Selling Yes
  • Options Yes
  • Exchange NYSE Arca
  • Inception Date 03/03/2011
  • NAIC Designation 4
  • # of Holdings 117
    as of 06/30/2015
as of 07/02/2015

Quick Facts

  • Previous Close $23.82
  • Open $23.80
  • Today's High $23.84
  • Today's Low $23.80
  • Today's Volume 1,363,057
  • 52 Week High $24.92
  • 52 Week Low $23.47
  • Shares Outstanding 226.00MM
  • Market Value $5,395.4MM