Invesco Powershares launches European Buyback ETF

ETF tradingInvesco PowerShares has launched an exchange-traded fund (ETF) that invests in companies which have bought back at least 5% of their own shares in the past year. Listed on the London Stock Exchange and Euronext Paris, European PowerShares Global Buyback Achievers Ucits ETF is said to be the first of its kind. Buying back shares reduces the number of shares outstanding and can return value to shareholders. The ETF uses full physical replication to track the Nasdaq Global Buyback Achievers Net Total Return Index, an index comprised of securities from both the US and international Nasdaq Buyback Achievers Indices. All corporations included in the index have achieved a net reduction in shares outstanding of 5% or more in the past year. Bryon Lake, head of Invesco PowerShares for Europe, the Middle East and Africa, says: "Through the underlying index, the PowerShares Global Buyback Achievers Ucits ETF provides access to a "smart beta" approach to investing in companies that return value by buying back shares. Buybacks can be more tax efficient than dividends, and this new ETF offers a low-cost, transparent and liquid vehicle through which to access this strategy." The ETF will also be listed on the Borsa Italiana and Deutsche Börse XETRA exchanges during November, and on the SIX Swiss exchange in December, subject to regulatory approval. Invesco PowerShares, part of global investment management company Invesco, is the fourth largest ETF provider globally and currently manages $2.9 billion (€2.3 billion) in ETFs tracking buyback strategies. ©2014 funds europe

Executive Interviews

INTERVIEW: Put your money where your mouth is

Jun 10, 2016

At Kempen Capital Management, they believe portfolio managers should invest in their own funds. David Stevenson talks to Lars Dijkstra, CIO of the €42 billion manager.

EXECUTIVE INTERVIEW: ‘Volatility is the name of the game’

May 13, 2016

Axa Investment Managers chief executive officer, Andrea Rossi, talks to David Stevenson about bringing all his firm’s subsidiaries under one name and the opportunities that a difficult market...


ROUNDTABLE: Beyond the hype

Oct 13, 2016

The use of smart beta investing continues to grow. Our panel, made up of both providers and users, discusses what the strategy actually means, how it should be used and the kind of pitfalls that may arise when using this innovative investment technique.

MIFID II ROUNDTABLE: Following the direction of travel

Sep 07, 2016

Fund management firms Aberdeen and HSBC Global meet with specialist providers to speak about how the industry is evolving towards MiFID II.