The PowerShares S&P 500® Downside Hedged Portfolio (the Fund) is an actively managed exchange-traded fund (ETF) that seeks to achieve positive total returns in rising or falling markets that are not directly correlated to broad equity or fixed-income market returns. The Fund seeks to achieve its investment objective by using a quantitative, rules-based strategy designed to provide returns that correspond to the performance of the S&P 500® Dynamic VEQTOR Index (the Index). The Index provides investors with broad equity market exposure with an implied volatility hedge by dynamically allocating between equity, volatility and cash. The index allows investors to receive exposure to the equity and volatility of the S&P 500 Index in a dynamic framework.

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Date   5/17/2013   Price   27.57   Bid/Ask Midpoint   27.53		NAV   27.51   Bid/Ask Prem/Disc   0.02   Bid/Ask Prem/Disc   0.07%

Premium Discount to NAV Chart

As of 3/31/2013

Index History (%)	YTD	1 Year	3 Year	5 Year	10 Year	Fund Inception
S&P 500 Dynamic VEQTOR Index	5.09	2.04	8.39			5.42
HFRX Global Hedge Fund Index	3.13	3.50	0.23	-1.74		3.86
U.S. Treasury Bills Index	0.02	0.09	0.09	0.26	1.60	0.02
S&P 500 Index	10.61	13.96	12.67	5.81	8.53	11.72

Fund History (%)	YTD	1 Year	3 Year	5 Year	10 Year	Fund Inception
NAV	4.83					4.76
After Tax Held	4.70					4.62
After Tax Sold	2.73					2.72
Market Price	4.12					4.79

This is a new Fund and has no full-year Fund performance to report as of most recent quarter end.

Monthly Standardized Report

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 5/31/2011, 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 The results assume that no cash was added to or assets withdrawn from the Index.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	17	1	0	0	0	0	0
Year Ended 2012	17	1	0	0	0	0	0
Fund Inception: 12/6/2012

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.

Ex-Date Record Date Pay Date $ / Share Ordinary Income Short Term Gains Long Term Gains Return of Capital 3/15/2013 3/19/2013 3/28/2013 0.07096 0.07096 N.A. N.A. N.A. 12/21/2012 12/26/2012 12/31/2012 0.02307 0.02307 N.A. N.A. N.A.

Distribution Information

	Derivative/Futures	13.13%
	Large-Cap Growth	42.53%
	Large-Cap Value	33.07%
	Mid-Cap Growth	6.89%
	Mid-Cap Value	4.25%
	Small-Cap Growth	0.06%
	Small-Cap Value	0.07%
As of 5/17/2013

Fund Holdings subject to change   S&P500 EMINI FUT JUN13 FUTURE   10.60%   EXXON MOBIL CORPORATION   2.40%   APPLE INC   2.39%   CBOE VIX INDEX JUNE13 FUTURE   2.28%   MICROSOFT CORP   1.52%   As of 5/17/2013		JOHNSON & JOHNSON   1.45%   GENERAL ELECTRIC CO   1.43%   CHEVRON CORP   1.41%   GOOGLE INC CL A   1.41%   INTL BUSINESS MACHINES CORP   1.28%

View All Fund Holdings

As of 5/17/2013

There are risks involved with investing in ETFs, including possible loss of money. Index-based ETFs are not actively managed. Actively managed ETFs do not necessarily seek to replicate the performance of a specified index. Both index-based and actively managed ETFs are subject to risks similar to stocks, including those related to short selling and margin maintenance. Ordinary brokerage commissions apply. The Fund's return may not match the return of the Index.

The Chicago Board Options Exchange (CBOE) can make methodological changes to the calculation of the VIX Index that could affect the value of the futures contracts on the VIX Index and may affect the value of your investment.

The contracts included in the VIX Index historically have traded in “contango” markets, resulting in a roll cost, which could adversely affect the value of the Shares. At any given time, the percentage increase in the amount of VIX Index Related Instruments in which the Fund invests may be less than the percentage increase in the VIX Index.

The Fund may engage in investment transactions, or enter into futures contracts. Because futures contracts project price levels in the future, market circumstances may cause a discrepancy between the price of a stock index future and the movement in the underlying index. In the event of adverse price movements, the Fund would be required to make daily cash payments to maintain its required margin.

The Fund’s use of derivatives may increase the amount of risk associated with the Fund and may magnify changes in the Fund’s value positively and negatively. The use of this fund may not be suitable for all investors.

ETNs are short-term investments and if leveraged may have amplified losses or gains. ETNs do not provide principal protection and may or may not make periodic coupon payments. ETNs are subject to credit risk and the value of the ETN may drop due to a downgrade in the issuer’s credit rating, despite the underlying market benchmark or strategy remaining unchanged.

The Fund will gain most of its exposure to the futures markets by entering into VIX Index futures. The Fund intends to restrict its income from VIX Index futures that do not generate qualifying income, to a maximum of 10% of its gross income. However, there is no guarantee the Fund will be successful in doing so, and failure to comply with this restriction would have significant negative consequences to Fund shareholders.

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 designed to achieve positive total returns in rising or falling markets. Significant short-term price movements could adversely affect the performance of the Fund and cause  substantial losses.

The Fund is considered non-diversified and may be subject to greater risks than a diversified fund.

The S&P 500^® Index is an unmanaged index considered representative of the U.S. stock market. The T-Bill 3 Month Index (U.S. Treasury Bills Index) is tracked by Lipper to provide performance for the 3-month U.S. Treasury Bill. The HFRX Global Hedge Fund Index is an investable hedge fund index designed to provide returns that reflect the performance of the global hedge fund universe. The VIX Index is a theoretical calculation and cannot be traded. The VIX Index measures the 30-day forward volatility of the S&P 500 Index as calculated based on the prices of certain put and call options on the S&P 500 Index.

The Global Industry Classification Standard was developed by and is the exclusive property and a service mark of MSCI, Inc. and Standard & Poor’s.

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).