The PowerShares Senior Loan Portfolio (Fund) is based on the S&P/LSTA U.S. Leveraged Loan 100 Index (Index). The Fund will normally invest at least 80% of its total assets in the component securities that comprise the Index. The Index is designed to track the market-weighted performance of the largest institutional leveraged loans based on market weightings, spreads and interest payments. The Fund and the Index are rebalanced and reconstituted bi-annually, in June and December. |
 |
Date |
|
5/22/2013 |
|
|
Price |
|
25.23 |
|
|
Bid/Ask Midpoint  |
|
25.22 |
|
| |
|
NAV |
|
25.19 |
|
|
Bid/Ask Prem/Disc |
|
0.03 |
|
|
Bid/Ask Prem/Disc |
|
0.12% |
|
|
|
|
|
|
| Index History (%) | YTD | 1 Year | 3 Year | 5 Year | 10 Year | Fund Inception |
| S&P/LSTA U.S. Leveraged Loan 100 Index | 2.13 | 8.13 | 6.11 | | | 5.06 |
| S&P/LSTA Leveraged Loan Index | 2.11 | 7.91 | 6.16 | | | 5.15 |
| Barclays U.S. Aggregate Index | -0.12 | 3.77 | 5.52 | 5.47 | 5.02 | 5.85 |
| Fund History (%) | YTD | 1 Year | 3 Year | 5 Year | 10 Year | Fund Inception |
| NAV | 2.03 | 7.83 | | | | 4.93 |
| After Tax Held | 1.50 | 5.90 | | | | 3.22 |
| After Tax Sold | 1.15 | 4.70 | | | | 3.13 |
| Market Price | 1.74 | 7.27 | | | | 4.72 |
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 3/31/2011, 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 The results assume that no cash was added to or assets withdrawn from the Index.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 |
0 |
0 |
0 |
| 12/31/2012 |
62 |
0 |
0 |
0 |
1 |
0 |
0 |
| 9/30/2012 |
63 |
20 |
0 |
0 |
0 |
0 |
0 |
| 6/30/2012 |
63 |
27 |
0 |
0 |
1 |
0 |
0 |
| Year Ended 2012 |
250 |
100 |
0 |
0 |
2 |
0 |
0 |
| Fund Inception: 3/3/2011 |
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.
| FIRST DATA CORPORATION | 6.75% | 11/1/2020 | B+/B1 | 2.00% |
|
2.
| ASURION CORP | 4.50% | 5/24/2019 | B+/NR | 1.96% |
|
3.
| Fortescue Metals Group | 5.25% | 10/18/2017 | BB+/Ba1 | 1.95% |
|
4.
| CHRYSLER AUTOMOTIVE GROUP LLC TL | 6.00% | 5/24/2017 | BB/Ba1 | 1.67% |
|
5.
| Texas Competitive Electric Hldgs NonExt | 3.72% | 10/10/2014 | CCC/Caa3 | 1.59% |
|
6.
| Univar, Inc. | 5.00% | 6/30/2017 | B+/B2 | 1.53% |
|
7.
| NEIMAN MARCUS GROUP TL | 4.00% | 5/16/2018 | B+/B2 | 1.47% |
|
8.
| Del Monte Corporation | 4.00% | 3/8/2018 | B/B1 | 1.45% |
|
9.
| Lawson Software Inc | 5.25% | 4/5/2018 | B+/Ba3 | 1.45% |
|
10.
| Springleaf Finance Corp. | 5.50% | 5/10/2017 | B/B3 | 1.41% |
| | % of Fund |
| 0 - 1 years | 0.00 |
| 1 - 5 years | 49.57 |
| 5 - 10 years | 50.37 |
| 10 - 15 years | 0.00 |
| 15 - 20 years | 0.00 |
| 20 - 25 years | 0.00 |
| 25 years and Over | 0.00 |
| | |
 |
| As of 5/22/2013 |
†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.
Investments in loans are subject to interest rate risk and credit risk. Interest rate risk refers to fluctuations in the value of a loan resulting from changes in the general level of interest rates. Credit risk refers to the possibility that the borrower of a loan will be unable and/or unwilling to make timely interest payments and/or repay the principal on its obligation. There is no organized exchange on which loans are traded and reliable market quotations may not be readily available.
As the purchaser of a loan assignment, the Fund typically succeeds to all assigning institution rights and obligations and becomes a lender under the credit agreement with respect to the debt obligation.
However, the Fund may not be able to enforce all rights and remedies under the loan including any associated collateral. If the loan is foreclosed, the Fund may become part owner of any collateral and may bear the costs and liabilities of owning and disposing of the collateral. The Fund may be required to pass on to a purchaser that buys a loan from the Fund a portion of fees it is entitled to under the loan. In connection with purchasing loan participations, the Fund will have no right to enforce borrower compliance with the terms of the loan agreement, nor any rights of set-off against the borrower, and the Fund may not benefit from any collateral supporting the loan. Consequently, the Fund will be subject to the credit risk of both the borrower and the lender that is selling the participation. In the event of the insolvency of the lender selling a participation, the Fund may be treated as the lender’s general creditor and may not benefit from any set-off between the lender and the borrower.
The Fund may invest in non-investment grade, or high-yield, securities (junk bonds). High-yield securities have additional risks, including interest rate changes, decreased market liquidity and a larger amount of outstanding debt than investment grade securities.
Proceeds from a current investment of the Fund, both interest payments and principal payments, may be reinvested in instruments that offer lower yields than the current investment due in part to market conditions and the interest rate environment at the time of reinvestment.
The market value of the shares of closed-end investment companies may differ from their NAV. In addition, the shares of closed-end investment companies frequently trade at a discount to their NAV. As an investor in closed-end investment companies, the Fund would bear its ratable share of those closed-end investment companies’ fees and expenses, including its investment advisory and administration fees, while continuing to pay its own advisory and administration fees and other expenses. As a result, shareholders will be absorbing duplicate levels of fees with respect to investments in closed-end investment companies.
The Fund may invest all or a portion of its assets in loans of non-U.S. borrowers. Loans of non-U.S. borrowers have additional risks, including decreased market liquidity, political instability and taxation by foreign governments.
The Fund’s use of a representative sampling approach will result in its holding a smaller number of loans than are in the Underlying Index, and may subject the Fund to greater volatility.
The Fund currently intends to effect creations and redemptions principally for cash, rather than principally in-kind because of the nature of the Fund’s investments. As such, investments in the Fund may be less tax efficient than investments in ETFs that create and redeem in-kind.
The Fund is non-diversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund.
Investments focused in a particular industry are subject to greater risk, and are more greatly impacted by market volatility than more diversified investments.
Liquidity risk may occur since the Fund's assets may be invested in loans that are less liquid than securities traded on national exchanges. Since the Fund may engage in frequent trading of securities in connection with rebalancing or adjusting its' underlying index, high brokerage costs and higher taxable capital gains distributions to sharesholders may occur due to porfolio turnover risk.
The Fund invests in fixed-income 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 S&P/LSTA Leveraged Loan Index is an unmanaged index that tracks the current outstanding balance and spread over LIBOR for fully funded term loans. The Barclays U.S. Aggregate Index is an unmanaged index considered representative of the U.S. investment-grade, fixed-rate bond market.
S&P® is a registered trademark of Standard & Poor’s Financial Services LLC (S&P) and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (Dow Jones). These trademarks have been licensed for use by S&P Dow Jones Indices LLC. S&P® and Standard & Poor’s® are trademarks of S&P and Dow Jones® is a trademark of Dow Jones. These trademarks have been sublicensed for certain purposes by Invesco PowerShares Capital Management LLC (Invesco PowerShares). The Index is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Invesco PowerShares. The Fund is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P or their respective affiliates and neither S&P Dow Jones Indices LLC, Dow Jones, S&P or their respective affiliates make any representation regarding the advisability of investing in such product(s).
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