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Invesco PowerShares Celebrates Listing of the PowerShares Build America Bond Portfolio ETF on (NYSE Arca Listed BAB). In honor of the occasion, Ben Fulton, Executive Vice President of Global Product Development of Invesco PowerShares rings The Opening BellSM.
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You can also download this bell to your desktop:
1. Right-click on the download link
2. Select "Save Target As"
3. Select download location and save.
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About PowerShares Build America Bond Portfolio ETF (NYSE Arca: BAB)
The PowerShares Build America Bond Portfolio is based on the BofA Merrill Lynch Build America Bond 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 performance of U.S. dollar-denominated investment grade taxable municipal debt publicly issued under the Build America Bond program in the U.S. domestic market.
Qualifying securities must have an investment grade rating, a fixed coupon schedule and a minimum amount outstanding of $1 million. In addition, qualifying securities must be “direct pay” (i.e., a direct federal subsidy is paid to the issuer). Securities included in the index are capitalization-weighted based on their current amount outstanding, and the index is rebalanced on a monthly basis.
The Build America Bond program was created under the American Recovery and Reinvestment Act of 2009, which provides for the issuance of taxable municipal securities on which the issuer receives federal support of the interest paid. Unlike most other municipal obligations, interest received on Build America Bonds is subject to federal income tax. Issuers of “direct pay” Build America Bonds (i.e., taxable municipal bonds issued to provide funds for qualified capital expenditures) are entitled to receive payments from the U.S. Treasury over the life of the bond equal to 35% (or 45% in the case of Recovery Zone Economic Development Bonds) of the interest paid. The federal interest subsidy continues for the life of the bonds. (Source: Invesco PowerShares)
About Invesco PowerShares
Invesco PowerShares Capital Management LLC is leading the intelligent ETF revolution® through its family of more than 110 domestic and international exchange-traded funds, which seek to outperform traditional benchmark indexes while providing advisors and investors access to an innovative array of focused investment opportunities. With franchise assets of $41 billion as of Sept. 30, 2009, PowerShares ETFs trade on both U.S. stock exchanges. For more information, please visit us at www.invescopowershares.com.
Invesco PowerShares is a wholly owned subsidiary of Invesco Ltd., a leading independent global investment management firm dedicated to helping people worldwide build their financial security. Invesco provides a comprehensive array of enduring investment solutions for retail, institutional and high-net-worth clients around the world. Operating in 20 countries, the firm is listed on the New York Stock Exchange under the symbol “IVZ.” Additional information is available at www.invesco.com.
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