During the weekend of August 22/23, our third-party Administrator (The Bank of New York Mellon – BNYM) experienced a technical malfunction resulting in it being unable to calculate timely NAVs for its mutual funds and ETF clients, including the PowerShares ETFs. As we disclosed to you last week, we experienced a delay in the dissemination of the NAV. PowerShares worked aggressively with BNYM to resolve the issue. We are pleased to report that the malfunction has been corrected by the Administrator and that the system is back to normal. The NAV that is being disseminated today is the most recent NAV for the Funds (as of Thursday, September 3).
For primary market participants, please note that, in accordance with the Prospectus and the SAI for each PowerShares ETF, orders received before the cut-off time on any given day were processed at the NAV that was calculated by the Administrator for that day. Given the delay in the calculation and dissemination of the NAV by the Administrator, we expect that most of the orders that the Administrator received last week will settle in the normal settlement cycle. Certain orders may experience (or have experienced) a delay in settlement. Secondary market transactions were not affected by the delay and are anticipated to settle in ordinary course.
For additional information please contact PowerShares at 1-800-983-0903.
Describes investments in the least volatile securities within their asset class. The low volatility factor seeks to capture the low volatility anomaly – the observation that lower-volatility stocks have historically generated better risk-adjusted returns than similar high-volatility stocks over time.
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 short selling and margin maintenance. Ordinary brokerage commissions apply. The Fund's return may not match the return of the Underlying Index.
There is no assurance that such ETFs will provide low volatility.
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