PowerShares Capital Management LLC, plans a significant global expansion with the company’s anticipated listing of five new international portfolios on Sept. 27, 2007, on the American Stock Exchange.
“Our International Listed Private Equity portfolio will give U.S.-based investors unique access to a diversified group of companies whose primary business is private equity investments,” says Bruce Bond, president of PowerShares Capital Management. “Our four additional FTSE RAFI portfolios will provide fundamental weighted exposure to global markets.”
PowerShares’ Global series of FTSE RAFI Portfolios are based on FTSE RAFI global indexes, uniquely constructed using four fundamental measures of a firm’s size: book value, cash flow, sales and dividends. The equities with the highest fundamental strength are then weighted according to their fundamental scores.
Rob Arnott, Chairman of Research Affiliates, LLC adds: “Our research has found that indexes weighted by company fundamentals, on average, have outperformed the well-known cap-weighted indexes in the US by an average 200 basis points per year. In international applications, this benefit surpasses 300 basis points, on average.”