Products September 23, 2011

Invesco PowerShares List Chinese Yuan Dim Sum Bond ETF

September 23, 2011 (PLANSPONSOR.com) - Invesco PowerShares Capital Management LLC announced the PowerShares Chinese Yuan Dim Sum Bond Portfolio is expected to begin trading on Sept. 23, 2011. 
 
Reported by

The Fund will provide access to Chinese yuan-denominated “Dim Sum” bonds issued and settled outside mainland China. DSUM will have an expense ratio of 0.45% and is expected to issue monthly distributions.

“The Dim Sum bond market offers attractive coupons, and the ability to participate in the appreciation potential of the yuan over time,” said Ben Fulton, Invesco PowerShares Managing Director of Global ETFs.

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The Dim Sum bond market was introduced in 2007 when the People’s Republic of China-incorporated financial institutions were first allowed to issue yuan-denominated bonds offshore. Since then, the market for Dim Sum bonds has seen significant growth, particularly since its deregulation in July 2010. Dim Sum bonds are generally issued in Hong Kong by governments, agencies, supranationals, and corporations.

The PowerShares Chinese Yuan Dim Sum Bond Portfolio is based on the Citigroup Dim Sum (Offshore CNY) Bond Index. The Fund will normally invest at least 90% of its total assets in Chinese yuan-denominated bonds that comprise the Index. The Index measures the performance of Chinese yuan-denominated “Dim Sum” bonds that are issued and settled outside of Mainland China. The Index includes fixed-rate securities issued by governments, agencies, supranationals and corporations that have a minimum maturity of one year and a minimum size outstanding of 1 billion yuan. The index is managed by Citigroup Index LLC and is reconstituted on a monthly basis.

Compliance September 23, 2011

CalPERS Pension Managers Fined for Unreported Gifts

September 23, 2011 (PLANSPONSOR.com) – Sixteen executives and investment managers from the California Public Employees Retirement System (CalPERS) have been fined by California’s political watchdog agency. 
 
Reported by

The individuals were fined for failing to report gifts, which included food, wine, and baseball and Rose Bowl tickets.

According to the AP, the largest fine was $3,600, which was against Shaun Greenwood, a portfolio manager for CalPERS. He failed to report $2,700 worth of clothing, alcohol, meals, and event tickets.

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The gifts mostly came from the fund’s investment partners, including Goldman Sachs, UBS, Credit Suisse, the Carlyle Group, and LP Capital Advisors.

These fines are the latest spinoff from a larger investigation that brought a lawsuit by the attorney general’s office last year alleging fraud and kickbacks, the AP reports.

The ethics investigation led to a review of gifts received by pension fund employees and board members dating to 2006. The 16 fines were agreed upon between the commission’s investigators and the employees.

The fines include $400 for CalPERS Board President Rob Feckner, who failed to report five meals worth a total of $277 in 2007 and 2008. Board member Louis Moret was fined $400 for accepting two meals worth $217 in 2008. Others failed to report wine, clothing and entertainment that included bowling, golf, and kayaking outings.

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