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| On Oct. 16, 2008, Invesco PowerShares listed the PowerShares Emerging Markets Infrastructure Portfolio, offering investors exposure to stocks of companies involved in infrastructure construction and development in emerging market countries. Infrastructure generally refers to the physical structures that support a society. These include roadways, railways, pipelines, power grids, seaports and communication systems, to name a few. |
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| Emerging markets infrastructure figures |
| The chart below illustrates various transportation statistics among the top countries allocated within the
S-Network Emerging Infrastructure Builders IndexSM. Scroll over each icon below to view statistics. |
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| Source: The 2008 CIA World Fact Book. |
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| Why emerging markets infrastructure? |
| In the past, limited financing has restricted reaction to the growing demand for infrastructure development. Yet recently, emerging market countries have experienced steady growth in gross domestic product (GDP), allowing these nations to earmark a greater percentage of funding for infrastructure development. Rising commodity prices have allowed emerging market countries to thrive. Trade within emerging market countries has been especially strong, resulting in a sharp demand for infrastructure improvements. |
| Morgan Stanley has predicted a total of $21.7 trillion will be spent on infrastructure spending over the next decade, with $1.25 trillion being spent in 2008 alone.¹ The increased spending is due in large part to emerging market nations "catching up" to the infrastructure demands of their growing populations. China has spent an estimated 9% of its GDP on infrastructure over the past few years,¹ and has plans to continue building, with 97 new regional airports anticipated over the next 12 years². |
| Below is the country allocation of the S-Network Emerging Infrastructure Builders Index as of 9/30/2008. |
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| ¹Source: Morgan Stanley Investment Management, "Emerging Markets Infrastructure: Just Getting Started," April 2008. |
| ²Source: OECD, "Infrastructure to 2030, Volume 2, Mapping Policy for Electricity, Water and Transport," 2007. |
| There are risks involved with investing in ETFs, including possible loss of money. The Fund is not actively managed and is subject to risk similar to stocks, including those related to short selling and margin maintenance. Ordinary brokerage commissions apply. |
| Investment in the securities of non-U.S. issuers involves risks beyond those associated with investments in U.S. securities, including, but not limited to, greater market volatility, the availability of less reliable financial information, higher transactional costs, taxation by foreign governments, decreased market liquidity, political instability, changes in currency exchange rates, interest rate fluctuation and monetary policy changes. |
| Investments focused in a particular industry are subject to greater risk, and are more greatly impacted by market volatility, than more diversified investments. |
| The Fund has greater exposure to the potential adverse economic, regulatory, political and other changes affecting infrastructure companies because of investments in such entities. Infrastructure companies are subject to a variety of factors that may adversely affect their business or operations. |
| Shares are subject to risks including: Small and Medium-Sized Company Risk - investing in securities of small and medium-sized companies involves greater risk than is customarily associated with investing in more established companies. |
| Investment in securities in emerging market countries involves risks not associated with investments in securities in developed countries. |
| "S-Network Global Indexes, LLC" and "S-NETWORK EMERGING INFRASTRUCTURE BUILDERS INDEX" are service marks of S-Network Global Indexes LLC and have been licensed for use by Invesco PowerShares Capital Management LLC. The PowerShares Emerging Markets Infrastructure Portfolio is not sponsored, endorsed, sold or promoted by S-Network Global Indexes LLC and S-Network Global Indexes LLC makes no representation regarding the advisability of investing in the PowerShares Emerging Markets Infrastructure Portfolio. Invesco PowerShares Capital Management LLC is not affiliated with S-Network Global Indexes LLC. |
| 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 100,000 shares. |
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| An investor should consider the Fund's investment objective, risks, charges and expenses carefully before investing. For this and more complete information about the Fund call 800.983.0903 for a prospectus. Please read the prospectus carefully before investing. |
