Invesco PowerShares introduced the industry's first actively managed equity ETFs in April 2008, listing the PowerShares Active Mega Cap Fund (PMA), PowerShares Active AlphaQ Fund (PQY), and PowerShares Active Multi-Cap Fund (PQZ). As part of the same listing, Invesco PowerShares also launched the PowerShares Active Low Duration Fund (PLK), and in November 2008, the company listed the first actively managed U.S. Real Estate ETF -- PowerShares Active U.S. Real Estate Fund (PSR).
Separately, Edward McRedmond, senior vice president of portfolio strategies at Invesco PowerShares, won an award for his "Contribution to the ETF Sector" at the 8th Annual Closed-End Fund & ETF Awards Capital Link Forum. This marks the second consecutive year he has received the award and the fifth consecutive year for Invesco PowerShares.
Invesco PowerShares says it had franchise assets of $25.8 billion as of March 31, 2009.
Robert Brooks, senior vice president and director of sales, spent some time recently sharing his views on the ETF industry with Research
Can you tell us, as of Q109, what the distribution of PowerShares ETFs is via the different channels?
The distribution of PowerShares ETFs across the advice channels is approximately 40 percent in the wirehouses, 10 percent with independent advisors, 40 percent via RIAs, and the remaining 10% in banks.
Given the tremendous change in the financial system of late, how is your distribution changing in '09 vs. '08?
The volume of ETF trading in hedge funds has grown as has our effort to educate them on PowerShares. We have also seen a very large shift in the wirehouse channel of advisors moving to discretionary platforms. We see a similar move by foundations and endowments to take management in house and increase the use of ETFs to get the desired asset class exposure. RIAs continue to be a very strong channel.
What products/sectors are seeing the most interest?
We have certainly see a large increase in fixed income and commodities. Other areas of interest concern opportunities based on the new administration, which include infrastructure, clean energy, and other areas of alternative energy.
What's are the latest developments in PowerShares' relationship with financial advisors?
We are seeing a significant interest in education and the desire to learn more about the PowerShares unique "intelligent ETF" value proposition. One of the ways Invesco PowerShares provides advisor education is through webcasting. During the first quarter of 2009, we had over 2,000 participants on a webcast with [energy executive] T. Boone Pickens, as well as 850 listen to [trading expert] Tom Dorsey and the Dorsey Wright story.
We also continue to host PowerShares University (PSU) events in major cities across the country for investment professionals. These are all-day events designed to educate and assist investment professionals with using ETFs in their practice and provide CE credits for participants. Invesco PowerShares sponsored 15 PSUs during 2008 and has plans for 11 during the first half of 2009.