Wealth Manager - the site for professional investment managers

Register for full access to Citywire’s Fund Manager database, news and analysis. Registration is free and only takes a minute.

Invesco shuts Middle East and North Africa ETF

Invesco shuts Middle East and North Africa ETF

Invesco is to close its Middle East and North Africa exchange-traded fund (ETF) as it has fallen below its target size.

The PowerShares Middle East North Africa Nasdaq OMX fund is scheduled for liquidation on 1 April 2014, with final settlement expected on 11 April.

Invesco, whose passive range is branded PowerShares, explained that it had decided to shut the ETF ‘because assets under management have fallen below a level at which the fund can be considered viable’.

The fund’s articles specify that its shares may be redeemed if its net asset value is less than $350 million (£211 million) for a period of thirty consecutive days. Invesco confirmed that the net asset value had stood ‘significantly below’ this threshold over the past month.

The ETF has returned 6.6% since inception in 2009, compared with 9% from its underlying index and 17.2% from the MSCI Emerging Markets index.

Invesco recommended that investors redeem their shares in the fund ‘at the next available opportunity’, and has undertaken to bear all costs associated with the closure of the ETF.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Investment Pulse: the highs and lows of 2014

Investment Pulse: the highs and lows of 2014

This week's Investment Pulse looks back at some of the biggest stories of the year as well as looking forward to 2015.

Play Inside ETFs: Why the US bull-run still has legs

Inside ETFs: Why the US bull-run still has legs

Global equities suffered a sharp sell-off in the third quarter but exchange traded fund investors are continuing to back the US to outperform in 2015

Play Paul Niven: I won't rip up the Foreign & Colonial Trust history book

Paul Niven: I won't rip up the Foreign & Colonial Trust history book

The newly appointed manager of the Foreign & Colonial trust talks about his plans for UK's oldest investment company.

Your Business: Cover Star Club

Manchester wealth firm hires Coutts director for London launch

Manchester wealth firm hires Coutts director for London launch

Former Coutts director Tony Robinson has joined Chartered Wealth Management to head the company’s newly opened London office.

Wealth Manager on Twitter