The PowerShares Fundamental High Yield® Corporate Bond Portfolio (Fund) is based on the RAFI® High Yield Bond Index (Index). The Fund will normally invest at least 80% of its total assets in the securities that comprise the Index. The Index is comprised of U.S. dollar-denominated bonds registered for sale in the United States whose issuers are public companies listed on major U.S. stock exchanges. Only securities with greater than one year to maturity qualify for inclusion in the Index. Based on the Fundamental Index® methodology developed by Research Affiliates, LLC, the Index is compiled and calculated by Ryan ALM, Inc. The Index is rebalanced monthly.
Effective Aug. 2, 2010, the name of the PowerShares High Yield Corporate Bond Portfolio changed to PowerShares Fundamental High Yield Corporate Bond Portfolio. Its underlying Index also changed to the RAFI High Yield Bond Index. Prior to Aug. 2, 2010, the Fund's underlying Index was the Wells Fargo® High Yield Bond Index. |
 |
Date |
|
9/1/2010 |
|
|
Price |
|
17.99 |
|
|
Bid/Ask Midpoint |
|
17.99 |
|
| |
|
NAV |
|
17.89 |
|
|
Bid/Ask Prem/Disc  |
|
0.09 |
|
|
Bid/Ask Prem/Disc |
|
0.53% |
|
|
|
|
|
|
| As of 6/30/2010 |
| Index History (%) | 1 Year | 3 Year | 5 Year | 10 Year | Fund Inceptiona |
| RAFI High Yield Bond Index | | | | | |
| Wachovia High Yield Bond Index | 19.03 | | | | 0.21 |
| Barclays Capital High Yield Treasury Index | 26.77 | | | | 6.97 |
| Barclays Capital US Aggregate Index | 9.50 | | | | 7.03 |
|
| Fund History (%) | 1 Year | 3 Year | 5 Year | 10 Year | Fund Inceptiona |
| NAV | 17.19 | | | | -3.83 |
| After Tax Held | 13.67 | | | | -6.92 |
| After Tax Sold | 11.09 | | | | -5.03 |
| Market Price | 14.97 | | | | -4.87 |
The Index is new and therefore has no full-year performance and history. |
| aFund and underlying Index returns are based on the inception date of the Fund. Returns for the benchmark indexes are based on the closest month end to the Fund's inception date. |
Market returns are based on the midpoint of the bid/ask spread at 4 p.m. ET and do not represent the returns an investor would receive if shares were traded at other times. Performance data quoted represents past performance, which is not a guarantee of future results. Investment returns and principal value will fluctuate, and shares, when redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than performance data quoted. After-tax returns reflect the highest federal income tax rate but exclude state and local taxes. Fund performance reflects fee waivers, absent which, performance data quoted would have been lower. After Tax Held and After Tax Sold are based on NAV.
|
| An investor cannot invest directly in an index. The results assume that no cash was added to or assets withdrawn from the Index. Index returns do not represent Fund returns. The Index does not charge management fees or brokerage expenses, nor does the Index lend securities, and no revenues from securities lending were added to the performance shown.
|
 |
| |
Bid/Ask MidPoint Above NAV |
Bid/Ask Midpoint Below NAV |
| Quarter |
Days |
50-99
Basis Points |
100-199
Basis Points |
H200
Basis Points |
50-99
Basis Points |
100-199
Basis Points |
H200
Basis Points |
| 6/30/2010 |
63 |
2 |
0 |
0 |
16 |
3 |
2 |
| 3/31/2010 |
61 |
12 |
0 |
0 |
17 |
1 |
0 |
| 12/31/2009 |
64 |
48 |
6 |
0 |
1 |
0 |
0 |
| 9/30/2009 |
63 |
28 |
26 |
0 |
2 |
1 |
0 |
| Fund Inception: 11/15/2007 |
|
Fund Holdings subject to change |
|
| | Coupon Rate | Maturity Date | Rating† | Weight |
| FORD MOTOR CREDIT CO 8.0% 12/15/16 | 8.00% | 12/15/2016 | B+/BA3 | 1.93% |
| REGIONS FINANCIAL BANK CORP 6.375% 05/15/2012 | 6.38% | 5/15/2012 | BB+/BA1 | 1.91% |
| CHESAPEAKE ENERGY CORP 6.5000% 8/15/2017 | 6.50% | 8/15/2017 | BB/Ba3 | 1.74% |
| AES CORP 8% 10/15/2017 - WI | 8.00% | 10/15/2017 | BB-/B1 | 1.72% |
| JARDEN CORP 7.5% 5/01/2017 | 7.50% | 5/1/2017 | B/B3 | 1.71% |
| SPRINT NEXTEL CORP 6% 12/1/2016 | 6.00% | 12/1/2016 | BB-/Ba3 | 1.70% |
| CRICKET COMMUNICATION LEAP 7.75% 05/15/2016 | 7.75% | 5/15/2016 | B+/Ba2 | 1.70% |
| SUPERVALU INC 8.0% 5/01/2016 | 8.00% | 5/1/2016 | B+/Ba3 | 1.69% |
| NRG ENERGY INC 7.3750% 2/01/2016 | 7.38% | 2/1/2016 | BB-/B1 | 1.69% |
| VIRGIN MEDIA FINANCE PLC 9.5% 08/15/2016 | 9.50% | 8/15/2016 | B+/B1 | 1.69% |
| | % of Fund |
| 0 - 1 years | 0.00 |
| 1 - 5 | 18.60 |
| 5 - 10 | 77.99 |
| 10 - 15 | 1.42 |
| 15 - 20 | 0.00 |
| 20 - 25 | 2.00 |
| 25 and Over | 0.00 |
| |
| | % of Fund:
(S&P) | % of Fund:
(Moody's) |
| BBB/Baa | 12.59 | 1.54 |
| BB/Ba | 46.70 | 53.74 |
| B/B | 38.26 | 38.51 |
| CCC/Caa | 2.45 | 6.21 |
| CC/Ca | 0.00 | 0.00 |
| C/C | 0.00 | 0.00 |
| Unrated | 0.00 | 0.00 |
|
As of 9/1/2010
†Credit ratings are assigned by Nationally Recognized Statistical Rating Organizations based on assessment of the credit worthiness of the underlying bond issuers. The ratings range from AAA (highest) to D (lowest) and are subject to change.
High-yield securities have additional risks, including interest-rate changes, decreased market liquidity and a larger amount of outstanding debt than investment-grade securities.
Foreign securities have additional risks, including exchange-rate changes, decreased market liquidity, political instability and taxation by foreign governments.
The Fund's underlying securities may be subject to call risk, which may result in the Fund having to reinvest the proceeds at lower interest rates, resulting in a decline in the Fund's income.
The Fund may invest in illiquid securities, resulting in a decline of the Fund's returns.
The Fund is considered non-diversified and may be subject to greater risks 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 Units only, typically consisting of aggregations of 100,000 shares.
Fundamental Index®, Research Affiliates®, Fundamental High Yield® and all other RA trademarks, trade names, patented and patent?pending concepts are the exclusive property of Research Affiliates, LLC. The RAFI US High Yield Bond Index is calculated and maintained by ALM Research Solutions, Inc. (a wholly owned subsidiary of Ryan ALM, Inc.) in conjunction with Research Affiliates LLC and is the exclusive property of Research Affiliates.
The Barclays Capital High-Yield Index covers the U.S. dollar-denominated, non-investment grade, fixed-rate, taxable corporate bond market. The Barclays Capital U.S. Aggregate Index is an unmanaged index considered representative of the U.S. investment-grade, fixed-rate bond market.
For more information regarding PowerShares Fundamental High Yield Corporate Bond Portfolio or any of the Invesco PowerShares products, please call 800.983.0903.
