The PowerShares Build America Bond Portfolio (Fund) is based on The BofA Merrill Lynch Build America 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 designed to track the performance of U.S. dollar-denominated Build America Bonds publicly issued by U.S. states and territories, and their political subdivisions, in the U.S. market. The Fund and the Index are rebalanced and reconstituted monthly. |
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Date |
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5/24/2013 |
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|
Price |
|
30.33 |
|
|
Bid/Ask Midpoint  |
|
30.32 |
|
| |
|
NAV |
|
30.37 |
|
|
Bid/Ask Prem/Disc |
|
-0.05 |
|
|
Bid/Ask Prem/Disc |
|
-0.16% |
|
|
|
|
|
|
| Index History (%) | YTD | 1 Year | 3 Year | 5 Year | 10 Year | Fund Inception |
| BofA Merrill Lynch Build America Bond Index | 1.14 | 9.42 | 12.92 | | | 11.55 |
| BofA Merrill Lynch U.S. Treasuries 15+ Years Index | -2.71 | 7.34 | 13.03 | 8.40 | 7.37 | 10.12 |
| BofA Merrill Lynch U.S. Corporate Master Index | 0.05 | 7.79 | 8.16 | 7.75 | 6.05 | 7.94 |
| Barclays U.S. Aggregate Index | -0.12 | 3.77 | 5.52 | 5.47 | 5.02 | 5.15 |
| Fund History (%) | YTD | 1 Year | 3 Year | 5 Year | 10 Year | Fund Inception |
| NAV | 1.25 | 9.67 | 12.69 | | | 11.78 |
| After Tax Held | 0.73 | 7.72 | 10.58 | | | 9.74 |
| After Tax Sold | 0.70 | 5.75 | 9.05 | | | 8.38 |
| Market Price | 1.45 | 9.50 | 12.49 | | | 11.58 |
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.
|
 |
| As of 3/31/2013 |
 |
| Data beginning 11/30/2009, the month end following Fund inception. |
| 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 The results assume that no cash was added to or assets withdrawn from the Index.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
Ending |
Days |
50-99
Basis Points |
100-199
Basis Points |
H200
Basis Points |
50-99
Basis Points |
100-199
Basis Points |
H200
Basis Points |
| 3/31/2013 |
60 |
0 |
0 |
0 |
1 |
0 |
0 |
| 12/31/2012 |
62 |
0 |
0 |
0 |
0 |
0 |
0 |
| 9/30/2012 |
63 |
0 |
0 |
0 |
0 |
1 |
0 |
| 6/30/2012 |
63 |
4 |
0 |
0 |
0 |
0 |
0 |
| Year Ended 2012 |
250 |
5 |
0 |
0 |
1 |
1 |
0 |
| Fund Inception: 11/17/2009 |
Shareholders may pay more than net asset value when they buy Fund shares and receive less than net asset value when they sell those shares, because shares are bought and sold at current market prices. Performance data quoted represents past performance, which is not a guarantee of future results. |
|
Fund Holdings subject to change |
|
| | | Coupon Rate | Maturity Date | Rating† | Weight |
|
1.
| North Texas Tollway Authority | 8.91% | 02/01/2030 | NR/Baa3 | 2.18% |
|
2.
| Los Angeles Unified School District/CA | 6.76% | 07/01/2034 | AA-/Aa2 | 1.94% |
|
3.
| City of Chicago IL O'Hare International Airport Revenue | 6.40% | 01/01/2040 | A-/A2 | 1.87% |
|
4.
| Chicago Board of Education | 6.14% | 12/01/2039 | A+/A2 | 1.64% |
|
5.
| State of California | 6.51% | 04/01/2039 | A/A1 | 1.60% |
|
6.
| State of Illinois | 5.56% | 02/01/2021 | A-/A2 | 1.57% |
|
7.
| Florida Governmental Utility Authority | 6.55% | 10/01/2040 | NR/A2 | 1.51% |
|
8.
| Municipal Electric Authority of Georgia | 7.06% | 04/01/2057 | A-/Baa2 | 1.50% |
|
9.
| City of New York NY | 5.97% | 03/01/2036 | AA/Aa2 | 1.49% |
|
10.
| State of California | 7.60% | 11/01/2040 | A/A1 | 1.44% |
| | % of Fund |
| 0 - 1 years | 0.00 |
| 1 - 5 years | 0.03 |
| 5 - 10 years | 4.84 |
| 10 - 15 years | 5.02 |
| 15 - 20 years | 21.42 |
| 20 - 25 years | 21.79 |
| 25 years and over | 46.89 |
| | |
†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. Not rated indicates the debtor was not rated, and should not be interpreted as indicating low quality. Futures and other derivatives are not eligible for assigned credit ratings by any NRSRO and are excluded from quality allocations. For more information on rating methodologies, please visit the following NRSRO websites: standardandpoors.com and select "Understanding Ratings" under Rating Resources and moodys.com and select "Rating Methodologies" under Research and Ratings.
The Securities Valuation Office of the National Association of Insurance Commissioners (NAIC) assigns credit quality designations to securities held by state-regulated insurance companies. NAIC Designations are opinions of credit quality that range from NAIC 1, being the highest quality, to NAIC 6, being the lowest quality. “P” is a valuation indicator used to classify perpetual preferred stock. NAIC Designations allow fixed-income ETFs to be reported as bonds and are used to set Risk-Based Capital (RBC) requirements. NAIC designations only measure credit risk and do not measure other risks or factors that may affect repayment, such as volatility/interest rate, prepayment, extension or liquidity risk.
There are risks involved with investing in ETFs, including possible loss of money. Shares are not actively managed and are subject to risks similar to those of stocks, including those regarding short selling and margin maintenance requirements. Ordinary brokerage commissions apply. The Fund’s return may not match the return of the Underlying Index.
Municipal securities are subject to the risk that litigation, legislation or other political events, local business or economic conditions or the bankruptcy of the issuer could have a significant effect on an issuer’s ability to make payments of principal and/or interest. Municipal securities can be significantly affected by political changes as well as uncertainties in the municipal market related to taxation, legislative changes or the rights of municipal security holders. Because many securities are issued to finance similar projects, especially those relating to education, health care, transportation and utilities, conditions in those sectors can affect the overall municipal market. In addition, changes in the financial condition of an individual municipal insurer can affect the overall municipal market.
There is no guarantee that municipalities will continue to take advantage of the BAB program in the future and there can be no assurance that BABs will be actively traded. Furthermore, under the American Recovery and Reinvestment Act of 2009, the ability of municipalities to issue BABs expired on Dec. 31, 2010.As a result, the number of available BABs in the market is limited. In addition, illiquidity of the BABs may negatively affect the value of the BABs.
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 debt securities, such as notes and bonds, which carry interest rate and credit risk. Interest rate risk refers to the risk that bond prices generally fall as interest rates rise and vice versa. Credit risk is the risk of loss on an investment due to the deterioration of an issuer's financial health. 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 Shares are subject to market fluctuations caused by such factors as economic, political, regulatory or market developments, changes in interest rates and perceived trends in securities prices.
Unlike most exchange-traded funds (“ETFs”), the Fund currently intends to effect creations and redemptions principally for cash, rather than principally for in-kind securities, because of the nature of the Fund’s investments. As such, investments in Shares may be less tax efficient than investments in conventional ETFs.
The Fund’s use of a representative sampling approach will result in its holding a smaller number of bonds than are in the underlying Index, and may be subject to greater volatility.
The BofA Merrill Lynch U.S. Corporate Master Index tracks the performance of U.S. dollar denominated investment grade corporate debt publicly issued in the U.S. domestic market. The BofA Merrill Lynch U.S. Treasuries 15+ Years Index is a subset of The BofA Merrill Lynch U.S. Treasuries Index including all securities with a remaining term to final maturity greater than or equal to 15 years. The Barclays U.S. Aggregate Index is an unmanaged index considered representative of the U.S. investment-grade, fixed-rate bond market.
"BofA Merrill Lynch" and "The BofA Merrill Lynch Build America Bond IndexSM" are reprinted with permission. ©Copyright 2011 Merrill Lynch, Pierce, Fenner & Smith Incorporated ("BofA Merrill Lynch"). All rights reserved. "BofA Merrill Lynch" and "The BofA Merrill Lynch Build America Bond IndexSM" are service marks of BofA Merrill Lynch and/or its affiliates and have been licensed for use for certain purposes by PowerShares on behalf of the PowerShares Build America Bond Portfolio that is based on The BofA Merrill Lynch Build America Bond IndexSM, and is not issued, sponsored, endorsed or promoted by BofA Merrill Lynch and/or BofA Merrill Lynch's affiliates nor is BofA Merrill Lynch and/or BofA Merrill Lynch's affiliates an adviser to the PowerShares Build America Bond Portfolio. BofA Merrill Lynch and BofA Merrill Lynch's affiliates make no representation, express or implied, regarding the advisability of investing in the PowerShares Build America Bond Portfolio or The BofA Merrill Lynch Build America Bond IndexSM and do not guarantee the quality, accuracy or completeness of The BofA Merrill Lynch Build America Bond Index IndexSM, index values or any index related data included herein, provided herewith or derived therefrom and assume no liability in connection with their use. As the index provider, BofA Merrill Lynch is licensing certain trademarks, The BofA Merrill Lynch Build America Bond IndexSM and trade names which are composed by BofA Merrill Lynch without regard to PowerShares, the PowerShares Build America Bond Portfolio or any investor. BofA Merrill Lynch and BofA Merrill Lynch's affiliates do not provide investment advice to PowerShares or the PowerShares Build America Bond Portfolio and are not responsible for the performance of the PowerShares Build America Bond Portfolio.
BofA Merrill Lynch and BofA Merrill Lynch's affiliates do not provide investment advice to PowerShares or the PowerShares Build America Bond Portfolio and are not responsible for the performance of the PowerShares Build America Bond Portfolio.
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