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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.

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