Invesco recently filed to launch "PowerShares Actively Managed Exchange Traded Fund Trust - Government Portfolio," a fund of funds ETF with Government money funds underneath. It appears similar to another recent MMF ETF filing BlackRock Collateral Trust. (See our May 4 News, "BlackRock Collateral Trust ETF to Own Govt MMFs; SEI Goes Ultra Short." Both appear to be geared towards use as collateral by exchanges, and not for general public consumption by cash investors. The Invesco Form N-1A filing says, "The PowerShares Government Portfolio seeks to provide high levels of liquidity and minimum volatility of principal, while providing a competitive level of current income." Under "Principal Investment Strategies," it states, "The Fund is an actively managed exchange-traded fund that seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in a portfolio of registered money market mutual funds that hold U.S. dollar-denominated government securities and other securities eligible for investment by registered U.S. government money market and in direct investments in such securities. As of the date of this prospectus, the Fund intends to invest a substantial portion of its assets in the following Underlying Funds: the Treasury Portfolio, Government TaxAdvantage Portfolio, Government & Agency Portfolio and Premier US Government Money Portfolio, each of which is advised by an affiliate of the Adviser. In constructing the Fund's portfolio, Invesco Advisers, Inc., the Fund's sub-adviser, generally allocates and reallocates the Fund's assets among the Underlying Funds on a monthly basis on an approximate pro rata basis that is based on the amount of net assets of each Underlying Fund. However, Invesco is not required to invest the Fund's assets in any particular Underlying Fund or allocate any particular percentage of the Fund's assets to any particular Underlying Fund. Invesco may add, eliminate or replace any or all Underlying Funds at any time. The Adviser, the Sub-Adviser or their affiliates may advise some or all the Underlying Funds." It adds, "Each Underlying Fund is a "government money market fund" (as that term is defined under Rule 2a-7 of the Investment Company Act of 1940, as amended and seeks to maintain a stable $1.00 net asset value. The securities held by the Underlying Funds will comply with all requirements of Rule 2a-7 and other SEC rules applicable to money market funds seeking a stable NAV.... Unlike the Underlying Funds, the Fund will not be a money market fund, meaning that it will not seek to maintain a stable NAV of $1.00, nor will it be subject to other requirements of Rule 2a-7. The Fund's market price may fluctuate up or down independent of the net asset value of its holdings. However, the Fund will only purchase securities issued by registered government money market funds, or securities that comply with the quality and eligibility requirements of Rule 2a-7, as described above. Additionally, the Fund and the Underlying Funds may invest in variable and floating rate instruments that are permitted under the requirements of Rule 2a-7 and may transact in securities on a when-issued, delayed delivery or forward commitment basis."

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