AMVESCAP PLC (NYSE: AVZ) has announced its plan to purchase PowerShares
Capital Management for $60 million plus added financial incentives.
PowerShares, based in Wheaton, Ill., currently has 36 ETFs and roughly $3.8 billion of assets under management. Although much smaller than its rivals, the company has made an impact on the ETF marketplace by emphasizing enhanced indexing, which aims to outperform traditional benchmark indexes. PowerShares launched its first two ETFs in 2003 and has continued to add new funds at a frenzied pace. In 2005, it launched 31 ETFs.
“AMVESCAP is an outstanding organization and an excellent fit for PowerShares. We are very excited about our future together,” says Bruce Bond, president and CEO of PowerShares Capital Management.