Exchange-Traded Funds (ETFs)

LALT - PowerShares Multi-Strategy Alternative Portfolio

Access - Active

Product Details

The PowerShares Multi-Strategy Alternative Portfolio (Fund) is an actively managed exchange-traded fund (ETF) that seeks to achieve a positive total return with low correlation to the broader securities markets by investing in a combination of equity securities, financial futures contracts, forward currency contracts and other securities. Invesco Advisers, Inc., the sub-adviser to the Fund (Sub-Adviser), selects investments for inclusion in the Fund's portfolio with reference to the components of the Morgan Stanley Multi-Strategy Alternative Index (Benchmark) through a quantitative process that seeks to exceed the Benchmark's performance. The Benchmark was developed by the Sales & Trading Division of the Institutional Securities Group of Morgan Stanley and includes a combination of quantitative, rules-based strategies (Benchmark Strategies) aimed to capture non-traditional risk premia across equities, rates, currencies and volatility markets.

as of 12/31/2014 12/31/2014

Performance


   
as of 12/31/2014 12/31/2014
  YTD 1 Year 3 Year 5 Year 10 Year Fund Inception
Index History (%)
Morgan Stanley Multi-Strategy Alternative Index N/A N/A N/A N/A N/A -3.18
HFRI Macro (Total) Index 6.38 6.38 1.91 1.85 4.40 6.07
Barclays U.S. Aggregate Index 5.97 5.97 2.66 4.45 4.71 1.98
Fund History (%)
Fund NAV N/A N/A N/A N/A N/A -3.20
After Tax Held N/A N/A N/A N/A N/A -3.20
After Tax Sold N/A N/A N/A N/A N/A -1.81
Fund Market Price N/A N/A N/A N/A N/A -3.36

Monthly Performance

This is a new Fund and has no full-year Fund performance to report as of most recent quarter end. Returns less than one year are cumulative.

The HFRI Macro (Total) Index is calculated monthly; therefore the since Fund Inception return uses index values as of the most recent month end.

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. After Tax Held and After Tax Sold are based on NAV. Returns less than one year are cumulative.

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.


as of 03/03/2015 Summary Holdings | View All

Fund Holdings subject to change

Investment Long / Short % of Net Assets
G-10 Currency Forwards Long 12.52%
G-10 Currency Forwards Short 12.46%
Interest Rate Futures Long 247.21%
Stock Index Futures Short 46.24%
US Stocks Long 44.79%
VIX Index Futures Long 2.80%
VIX Index Futures Short 3.90%
Collateral Long / Short % of Net Assets
AIM STIT TREASURY Long 10.19%
PREMIER PORTFOLIO-INS Long 10.19%
PREMIER TAX EXMPT-INS Long 10.19%
STIT GOVT & AGENCY-INST Long 10.19%
STIT-ST PRIME PORT-INSTIT Long 10.19%

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%
12/31/2014 64 0 0 0 0 0 0
09/30/2014 64 0 0 0 0 0 0
06/30/2014 23 0 0 0 0 0 0
Year Ended 2014 151 0 0 0 0 0 0

Fund Inception: 05/29/2014

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.


 Risk & Other Information

Alternative strategies typically are subject to increased risk and loss of principal. Consequently, investments such as exchange-traded funds which focus on alternative strategies are not suitable for all investors.

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. The Fund's return may not match the return of the Benchmark.

The Fund is subject to management risk because it is an actively managed portfolio. The investment techniques and risk analysis used by the portfolio managers may not produce the desired results.

The Sub-Adviser uses a rules-based methodology to allocate the Fund's assets in a combination of investment Strategies designed to limit the Fund's risk and volatility. As market dynamics shift over time, these various investment strategies — as well as the rules-based methodology that the Sub-Adviser employs to allocate Fund assets among them — may become outdated or inaccurate. As a result, the Fund may suffer significant losses.

The Fund will enter in futures contracts. Because futures contracts project price levels in the future, market circumstances may cause a discrepancy between the price of the near and distant contract. In the event of adverse price movements, the Fund would be required to make daily cash payments to maintain its required margin. The Fund also must segregate liquid assets or enter into off-setting positions to "cover" open positions in futures contracts. By investing in futures contracts, the Fund also is subject to capacity constraints and liquidity risks.

Certain derivative instruments that involve counterparties subject the Fund to the risk that the counterparty could default on its obligations under the agreement, either through the counterparty's bankruptcy or failure to perform its obligations. In the event of default, the Fund could experience lengthy delays in recovering some or all of its assets or no recovery at all. The Fund's investments in the futures markets also introduce the risk that its futures commission merchant (FCM) would default on an obligation set forth in an agreement between the Fund and the FCM, including the FCM's obligation to return margin posted in connection with the Fund's futures contracts.

The Fund will invest in derivatives and other instruments that may be less liquid than other types of investments. Illiquid investments can be more difficult or more costly to buy, or to sell, compared to other more liquid or active investments, and could have a negative effect on the Fund's ability to achieve its investment objective, resulting in losses to Fund shareholders.

The Fund may invest in foreign currency forward contracts, which may expose the Fund to foreign exchange risk. The factors of supply and demand in the international markets are influenced by factors such as macroeconomic, governmental policy, speculative factors, market sentiment and other political and economic considerations, and may affect the value of the assets of the Fund.

Some Benchmark Strategies attempt to hedge out broader exposure to their respective asset classes by short positions in futures, forwards, individual stocks, or other securities. These hedges may not always be effective, can result in unexpected exposures and potential losses, and may act to magnify losses.

While the Benchmark Strategies are designed to exhibit low correlation to each other and to the broader securities markets, there are no assurances that this low correlation will continue in the future.

Short sales are speculative transactions and involve special risks, including a greater reliance on the Sub-Adviser’s ability to accurately anticipate the future value of a security.

The Fund's exposure to derivatives and other investment techniques, such as short sales, can create a leveraging effect on the portfolio. This leverage will vary over time and may at times be significant, subjecting the Fund to certain risks causing the Fund to be more volatile and may result in the loss of a substantial amount of the Fund's assets. The Fund may have a substantial cash position due to margin and collateral requirements that may limit the Fund's ability to take advantage of other investment opportunities, and the Fund also may have to sell or liquidate a portion of its assets at inopportune times to satisfy these requirements. This may negatively affect the Fund's ability to achieve its investment objective. In addition, the Fund's assets that are used as collateral to secure these transactions may decrease in value while the positions are outstanding, which may force the Fund to use its other assets to increase collateral.

The Fund may invest in US government obligations issued or guaranteed by the US Government, its agencies and instrumentalities, including bills, notes and bonds issued by the US Treasury.

Money market funds are subject to management fees and other expenses, and investments in money market funds will cause the Fund to bear proportionately the costs incurred by the money market funds' operations. It is possible for the Fund to lose money by investing in money market funds.

Investments in fixed-income securities, such as notes and bonds, carry interest rate and credit risk. Interest rate risk refers to the risk that bond prices generally fall as interest rates rise and vice versa. Credit risk is the risk of loss on an investment due to the deterioration of an issuer's financial health.

During periods of reduced market liquidity 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.

Equity risk is the risk that the value of equity securities, including common stocks, may fall due to both changes in general economic and political conditions that impact the market as a whole, as well as factors that directly relate to a specific company or its industry.

Because the Fund may invest in other investment companies, it is subject to the risks associated with that investment company and its investment performance may depend on the underlying investment company’s performance. The Fund will indirectly pay a proportional share of the investment company’s fees and expenses, while continuing to pay its own management fee to the Adviser, resulting in shareholders absorbing duplicate levels of fees.

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 generally will seek to invest in derivative instruments that it believes generates qualifying income. The Fund will seek to limit its non-qualifying income so as to qualify as a RIC. For the Fund to qualify as a RIC, the Fund must meet a qualifying income test each taxable year. Failure to comply with the qualifying income requirements would have significant negative tax consequences to Fund shareholders, including the imposition of a higher tax rate on the Fund and taxes on its distributions to shareholders.

The Fund is considered non-diversified and may be subject to greater risks than a diversified fund.

Investing in securities of small and medium-sized companies may involve greater risk than is customarily associated with investing in large companies.

The Fund's investments in futures contracts will cause it to be deemed to be a commodity pool, thereby subjecting the Fund to regulation under the Commodity Exchange Act and Commodity Futures Trading Commission (CFTC) rules. The Adviser is registered as a Commodity Pool Operator (CPO), and the Fund will be operated in accordance with CFTC rules, as well as the rules that apply to registered investment companies. Registration as a CPO imposes compliance obligations related to additional laws, regulations and enforcement policies, which could increase compliance costs and may affect the operations and financial performance of funds whose adviser is required to register as a CPO.

The HFRI Macro (Total) Index is one of a series of benchmarks designed to reflect hedge fund industry performance by constructing equal weighted composite of constituent funds, as reported by the hedge fund managers listed within HFR Database. Hedge Fund Research, Inc. has constructed a Strategy Classification System for all investment managers present in the HFR Database. The HFRI Macro (Total) Index includes Investment Managers which execute a broad range of strategies in which the investment process is predicated on movements in underlying economic variables and the impact these have on equity, fixed income, currency and commodity markets. Managers employ a variety of techniques, both discretionary and systematic analysis, combinations of top down and bottom up theses, quantitative and fundamental approaches and long and short term holding periods. The Barclays U.S. Aggregate Index is an unmanaged index considered representative of the US investment-grade, fixed-rate bond market.

The Morgan Stanley Multi-Strategy Alternative Index is a quantitative, rules-based Index consisting of five long, short and market-neutral (long/short) strategies which aim to capture alternative risk premia across equities, interest rates, currencies and volatility markets. Each of the five strategies is available as a standalone, rules-based index which had been created by Morgan Stanley & Co. LLC (the Benchmark Agent) and has a live history. The Multi-Strategy Alternative Index uses a risk-weighted framework by allocating to each strategy a weighting which is proportionate to the inverse of its 1-year trailing volatility. The weightings are rebalanced quarterly.

The Morgan Stanley Multi-Strategy Alternative Index (the "Index") and Morgan Stanley (the "Marks") are the exclusive property of Morgan Stanley & Co. LLC ("Morgan Stanley"), which has contracted with Invesco PowerShares Capital Management LLC to license such Index and Marks. The PowerShares Multi-Strategy Alternative Portfolio is not sponsored, endorsed, sold or promoted by Morgan Stanley or its affiliates. Morgan Stanley and its affiliates make no representation or warranty, express or implied, regarding the advisability of investing in securities generally or in the PowerShares Multi-Strategy Alternative Portfolio particularly or the ability of the Morgan Stanley Multi-Strategy Alternative Index to track general market performance. Neither Morgan Stanley nor its affiliates are responsible for and have not participated in the determination of the prices and amount of the PowerShares Multi-Strategy Alternative Portfolio or the timing of the issuance or sale of the PowerShares Multi-Strategy Alternative Portfolio or in the determination or calculation of the equation by which the PowerShares Multi-Strategy Alternative Portfolio is to be converted into cash. Neither Morgan Stanley nor its affiliates shall have any liability, direct or indirect, for the PowerShares Multi-Strategy Alternative Portfolio, Marks and/or the Index, including any errors or omissions in the calculation thereof.

Invesco Advisers, Inc. is an investment adviser. It provides investment advisory services and does not sell securities. Invesco Powershares, Invesco Distributors, Inc. and Invesco Advisers, Inc. are indirect, wholly owned subsidiaries of Invesco Ltd.

as of 03/03/2015
3:43 PM EST

LALT
Intraday Stats

  • Last Trade $23.21
  • Current IIV $23.21
  • Change -$0.07
  • % Change -0.30%
as of 03/02/2015
  • NAV at market close $23.24
as of 03/02/2015

Fund Yield

  • SEC 30 Day Yield 0.09%
  • 30-Day SEC Unsubsidized Yield
    as of 03/02/2015
    0.05%
as of 03/02/2015

Prior Close

  • Closing Price $23.28
  • Bid/Ask Midpoint $23.25
  • Bid/Ask Prem/Disc $0.01
  • Bid/Ask Prem/Disc 0.04%

Fund Details

  • Fund Ticker LALT
  • CUSIP # 73935B870
  • ISIN US73935B8708
  • Intraday NAV LALTIV
  • Management Fee 0.95%
  • Acquired Fund Fees & Expenses 0.05%
  • Total Expense Ratio 1.00%
  • Fee Waiver 0.04%
  • Net Expense Ratio 0.96%
  • Marginable Yes
  • Short Selling Yes
  • Options Yes
  • Exchange NASDAQ
  • Inception Date 05/29/2014
  • # of Holdings 103
    as of 03/03/2015
as of 03/03/2015

Quick Facts

  • Previous Close $23.28
  • Open $23.26
  • Today's High $23.26
  • Today's Low $23.21
  • Today's Volume 2,255
  • 52 Week High $25.10
  • 52 Week Low $22.88
  • Shares Outstanding .60MM
  • Market Value $13.9MM