The PowerShares Preferred Portfolio is based on The BofA Merrill Lynch Core Plus Fixed Rate Preferred Securities Index. The Fund will normally invest at least 80% of its total assets in fixed rate US dollar-denominated preferred securities that comprise the Index. The Index tracks the performance of fixed rate US dollar-denominated preferred securities issued in the US domestic market. (Securities must be rated at least B3, based on an average of three leading ratings agencies: Moody’s, S&P and Fitch) and must have an investment-grade country risk profile (based on an average of Moody’s, S&P and Fitch foreign currency long-term sovereign debt ratings). The Fund and the Index are rebalanced and reconstituted on a monthly basis.
Effective April 2, 2012, the Fund’s index changed from The BofA Merrill Lynch Core Fixed Rate Preferred Securities Index to The BofA Merrill Lynch Core Plus Fixed Rate Preferred Securities Index. |
 |
Date |
|
6/18/2013 |
|
|
Price |
|
14.42 |
|
|
Bid/Ask Midpoint  |
|
14.43 |
|
| |
|
NAV |
|
14.43 |
|
|
Bid/Ask Prem/Disc |
|
- |
|
|
Bid/Ask Prem/Disc |
|
- |
|
|
|
|
|
|
| Index History (%) | YTD | 1 Year | 3 Year | 5 Year | 10 Year | Fund Inception |
| BofA Merrill Lynch Core Plus Fixed Rate Preferred Securities Index | 3.03 | 10.75 | | | | |
| BofA Merrill Lynch Core Fixed Rate Preferred Securities Index | 2.81 | 8.93 | 9.23 | 3.45 | 3.13 | 2.23 |
| S&P U.S. Preferred Stock Index | 3.13 | 11.06 | 9.18 | 7.66 | | 5.93 |
| S&P 500 Index | 10.61 | 13.96 | 12.67 | 5.81 | 8.53 | 4.86 |
| Fund History (%) | YTD | 1 Year | 3 Year | 5 Year | 10 Year | Fund Inception |
| NAV | 2.91 | 10.61 | 9.11 | 2.95 | | 1.58 |
| After Tax Held | 2.21 | 8.62 | 7.31 | 1.01 | | -0.33 |
| After Tax Sold | 1.64 | 6.97 | 6.80 | 1.81 | | 0.76 |
| Market Price | 3.04 | 10.52 | 9.20 | 2.44 | | 1.31 |
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 1/31/2008, 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 |
0.50-0.99% |
1.00-1.99% |
> 2.00% |
0.50-0.99% |
1.00-1.99% |
> 2.00% |
| 3/31/2013 |
60 |
0 |
0 |
0 |
0 |
0 |
0 |
| 12/31/2012 |
62 |
0 |
0 |
0 |
0 |
0 |
0 |
| 9/30/2012 |
63 |
0 |
0 |
0 |
0 |
0 |
0 |
| 6/30/2012 |
63 |
0 |
0 |
0 |
0 |
0 |
0 |
| Year Ended 2012 |
250 |
2 |
0 |
0 |
0 |
0 |
0 |
| Fund Inception: 1/31/2008 |
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.
| Citigroup Capital XIII | 7.88% | 10/30/2040 | BB/Ba2 | 3.94% |
|
2.
| Barclays Bank PLC | 8.13% | 12/31/2049 | BBB/Ba2 | 3.86% |
|
3.
| Wells Fargo & Co | 8.00% | 12/31/2049 | BBB+/Baa3 | 3.18% |
|
4.
| ING Groep NV | 8.50% | 12/31/2049 | BBB-/Ba1 | 3.04% |
|
5.
| HSBC Holdings PLC | 8.00% | 12/31/2049 | BBB+/Baa2 | 3.03% |
|
6.
| Morgan Stanley Capital Trust VII | 6.60% | 10/15/2066 | BB+/Ba1 | 3.01% |
|
7.
| HSBC Holdings PLC | 8.13% | 12/31/2049 | BBB+/Baa2 | 2.64% |
|
8.
| Deutsche Bank Contingent Capital Trust V | 8.05% | 12/31/2049 | BBB/Ba2 | 2.64% |
|
9.
| JPMorgan Chase & Co | 8.63% | 12/31/2049 | BBB/Ba1 | 2.47% |
|
10.
| Aegon NV | 6.38% | 12/31/2049 | BBB/Baa1 | 2.09% |
| | % of Fund |
| 0 - 1 years | 0.00 |
| 1 - 5 years | 0.00 |
| 5 - 10 years | 0.72 |
| 10 - 15 years | 0.00 |
| 15 - 20 years | 1.75 |
| 20 - 25 years | 2.88 |
| 25 years and over | 94.53 |
| | |
As of 6/18/2013
†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.
Non-investment grade securities have additional risks, including higher default risk and decreased market liquidity.
Preferred securities may be less liquid than many other securities, and in certain circumstances, an issuer of preferred securities may redeem the securities prior to a specified date.
The Fund may contain securities in financial institutions. Companies engaged in financial institutions are subject to greater risks, and are more greatly impacted by market volatility, than more diversified investments.
Foreign securities have additional risks, including exchange-rate changes, decreased market liquidity, political instability and taxation by foreign governments.
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 Fund’s use of a representative sampling approach will result in its holding a smaller number of securities than are in the underlying Index, and may be subject to greater volatility.
Investing in securities of small and medium-sized companies may involve greater risk than is customarily associated with investing in large companies.
The Fund is considered non-diversified and may be subject to greater risks than a diversified fund.
The S&P U.S. Preferred Stock Index is an unmanaged index consisting of U.S.-listed preferred stocks. The S&P 500® Index is an unmanaged index considered representative of the U.S. stock market.
The BofA Merrill Lynch Core Fixed Rate Preferred Securities Index is designed to replicate the total return of a diversified group of investment-grade preferred securities. (Securities must be investment-grade, based on an average of three leading ratings agencies: Moody's, S&P and Fitch).
"BofA Merrill Lynch", "The BofA Merrill Lynch Core Fixed Rate Preferred Securities Index" and “The BofA Merrill Lynch Core Plus Fixed Rate Preferred Securities Index” are reprinted with permission. ©Copyright 2012 Merrill Lynch, Pierce, Fenner & Smith Incorporated ("BofA Merrill Lynch"). All rights reserved. "BofA Merrill Lynch", "The BofA Merrill Lynch Core Fixed Rate Preferred Securities Index" " and “The BofA Merrill Lynch Core Plus Fixed Rate Preferred Securities Index” 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 Preferred Portfolio that is based on The BofA Merrill Lynch Core Plus Fixed Rate Preferred Securities Index, 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 Preferred Portfolio. BofA Merrill Lynch and BofA Merrill Lynch's affiliates make no representation, express or implied, regarding the advisability of investing in the PowerShares Preferred Portfolio or The BofA Merrill Lynch Core Plus Fixed Rate Preferred Securities Index and do not guarantee the quality, accuracy or completeness of The BofA Merrill Lynch Core Plus Fixed Rate Preferred Securities Index, 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 Core Fixed Rate Preferred Securities Index, The BofA Merrill Lynch Core Plus Fixed Rate Perferred Securities Index and trade names which are composed by BofA Merrill Lynch without regard to PowerShares, the PowerShares Preferred Portfolio or any investor. BofA Merrill Lynch and BofA Merrill Lynch's affiliates do not provide investment advice to PowerShares or the PowerShares Preferred Portfolio and are not responsible for the performance of the PowerShares Preferred Portfolio.
|
