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The PowerShares CEF Income Composite Portfolio is the first exchange-traded fund (ETF) of closed-end funds (CEFs).
PCEF seeks investment results that correspond (before fees and expenses) generally to the price and yield performance of the S-Network Composite Closed-End Fund IndexSM.
  • Portfolio Diversification.2
    Through approximately 71 closed-end funds, CEFX seeks to offer portfolio diversification across assets, strategies and managers, which can help to mitigate specific risks.
  • High rate of distribution
    The CEFs that comprise CEFX offer an average rate of distribution that is competitive with or higher than many other fixed-income investments.
  • Discounted assets
    CEFX uses a weighting methodology that assigns greater weights to CEFs that are trading at discounts.
Invesco PowerShares' family of fixed-income ETFs includes all types of products, including the industry's first insured municipal bond ETFs, the first laddered treasury ETF and the first ETF to invest solely in sovereign debt of emerging market countries. PowerShares Income ETFs can help investors develop an intelligent income strategy. Learn more
The underlying index is a rules-based index intended to give investors a means of tracking the overall performance of a global universe of U.S.-listed closed-end funds selected by the Index Provider.
Underlying index constituents are selected from a universe of approximately 350 closed-end funds. To qualify for the index, a closed-end fund must:
  • Have as its stated investment objective a concentration of activity in one of three sectors: taxable fixed income, high-yield fixed income or option income.
  • Trade on a recognized U.S. stock exchange that provides a "last closing price."
  • Have a minimum capitalization value greater than $100 million.
  • Have an average daily turnover (shares traded x share price) of more than $500,000 per day for the three months prior to the rebalancing date.
  • Have a total expense ratio of less than 2% per annum as of its most recent filing date.
Fund Details
Fund SymbolPCEF
Inception Date2/19/10
Opening Share Price$25.00
Expense Ratio0.50%
Index ProviderS-Network Global Indexes LLC
Rebalance FrequencyQuarterly
Reconstitution FrequencyQuarterly
Distribution FrequencyMonthly
PowerShares CEF Income Composite Portfolio will attempt to provide:
  • Efficient, broad exposure to the income-focused portion of the CEF market.
  • Monthly income through exposure to multiple means of income generation.
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Investor Guide
Learn more about closed-end funds and the PowerShares CEF Income Composite Portfolio.
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Closed-End Funds Quick Facts
  • CEF shares are created through an initial public offering (IPO).
  • Following the IPO, shares are publicly listed and traded on a stock exchange.
  • CEFs have both a market price and a NAV.
  • The market price may exhibit some relation to the NAV, but is established independently by forces of supply and demand.
  • The IPO capital is actively managed according to the specific investment objectives of the CEF.
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1 Source: S-Network Global Indexes LLC, as of January 2010
2 PCEF is non-diversified for purposes of the Investment Company Act of 1940 and can invest a greater percent of its assets in securities of individual issuers than a diversified fund.
General Risk Information
There are risks involved with investing in ETFs including possible loss of money. The Fund is not actively managed. Ordinary brokerage commissions apply.
The Fund's price and yield performance, because it is a fund of funds, depends on the price and yield performance of the Underlying Funds in which it invests. An investment in the Fund is subject to the risks associated with the Underlying Funds that comprise the Underlying Index, including, among others, Investment and Market Risk; Interest Rate Risk; Credit Risk; Below Investment Grade Securities Risk; Options Risk; Derivatives Risk; Leverage Risk; Counterparty Risk; Senior Loans Risk; Foreign and Emerging Market Securities Risk; Liquidity Risk; Concentration Risk; Mortgage- and Asset-Backed Securities Risk; Small and Medium Capitalization Company Risk; Recent Developments in Financial Markets; and Anti-Takeover Provisions Risk. See the prospectus for additional risk information. The Fund will indirectly pay a proportional share of the fees of the Underlying Funds in which it invests, including its investment advisory and administration fees, while continuing to pay its own advisory and administration fees and other expenses. As a result, shareholders will be absorbing duplicate levels of fees with respect to investments in closed-end investment companies. At times, certain of the segments of the market represented by constituent Underlying Funds in the Underlying Index may be out of favor and underperform other segments.
The shares of closed-end investment companies may trade at a discount, premium, or at their NAV.
The securities of closed-end investment companies in which the Fund may invest may be leveraged. As a result, the Fund may be indirectly exposed to leverage through an investment in such securities. An investment in securities of closed-end investment companies that use leverage may expose the Fund to higher volatility in the market value of such securities and the possibility that the Fund's long-term returns on such securities (and, indirectly, the long-term returns of the Shares) will be diminished.
The Fund is considered non-diversified and can invest a greater portion of assets in securities of individual issuers and may be subject to greater risk than a diversified fund.
Shares are not individually redeemable and owners of the Shares may acquire those Shares from the Fund and tender those Shares for redemption to the Fund in Creation Unit aggregations only, typically consisting of 50,000 Shares.
©2010 Invesco PowerShares Capital Management LLC
PowerShares® is a registered trademark of Invesco PowerShares Capital Management LLC (Invesco PowerShares). Invesco PowerShares Capital Management LLC and Invesco Distributors, Inc. are indirect, wholly owned subsidiaries of Invesco Ltd.
Invesco Distributors, Inc. is the distributor of the PowerShares Exchange-Traded Fund Trust, the PowerShares Exchange-Traded Fund Trust II, the PowerShares India Exchange-Traded Fund Trust and the PowerShares Actively Managed Exchange-Traded Fund Trust.
Investment products offered are: Not FDIC Insured  • No Bank Guarantee  • May Lose Value
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