TORONTO, March 24, 2014 /CNW/ - PowerShares Canada today announced changes to the investment strategy of PowerShares Canadian Preferred Share Index Class and PowerShares Canadian Preferred Share Index ETF ("PPS"). In 2013, The NASDAQ OMX Group, Inc. ("NASDAQ") acquired the index business of Mergent, Inc., including Indxis, which created and maintained the underlying index for both PowerShares Canadian Preferred Share Index Class and PPS. Following the acquisition, NASDAQ reviewed its indices, and has announced enhancements to its NASDAQ Select Canadian Preferred Share TM Index, which is the underlying index of both PPS and PowerShares Canadian Preferred Share Index Class. "After significant review, NASDAQ has determined to update the index methodology for NASDAQ Select Canadian Preferred Share TM Index in order to bring a more robust approach to the market," said Dave Gedeon, managing director, NASDAQ OMX Global Indexes. "We are updating the methodology with a focus on index size and selection, and believe the resulting index with high-yield and low-volatility screens will serve as a better benchmark for the Canadian market." "The improvements made to the underlying index reflect NASDAQ and PowerShares Canada's continued commitment to providing access to smart beta strategies for Canadian investors," said Michael Cooke, Head of Distribution, PowerShares Canada. The previous index methodology had applied liquidity and market-capitalization screens to narrow the investable universe, from which the 50 most liquid securities were selected for index inclusion. Effective Thursday, May 1, 2014, the index will include 100 securities, with selection based on the highest combined weight of high yield and low volatility. The new methodology maintains the liquidity screen and continues to weight by market capitalization. PowerShares Canada also announced that it has reduced the management fee on PowerShares FTSE RAFI U.S. Fundamental (CAD Hedged) Index ETF ("PXU"). Effective March 28, 2014, the management fee will be reduced from 60 basis points (bps) to 55 bps. The effective management fee for PXU has been 55 bps since its inception on January 26, 2012, when an ongoing discretionary waiver of five bps was implemented. To provide investors with more clarity, that waiver has been cancelled and the fee reduced permanently. In a related announcement, PowerShares Canada will rename PowerShares Ultra DLUX Long Term Government Bond Index ETF (PGL) as PowerShares Ultra Liquid Long Term Government Bond Index ETF (PGL) effective April 15, 2014. The name change reflects the new name of its underlying index; however, the index methodology is unchanged. The DEX Ultra DLUX Long Government Bond Index was renamed FTSE TMX Canada Ultra Liquid Long Term Government Bond Index. That name change resulted from the merger of the fixed-income index businesses of TMX Datalinx and FTSE Group.