The PowerShares Insured National Municipal Bond Portfolio (Fund) is based on The BofA Merrill Lynch National Insured Long-Term Core Plus Municipal Securities Index (Index). The Fund will normally invest at least 80% of its total assets in securities that comprise the Index and generally expects to invest at least 90% of its total assets. The Index is designed to track the performance of U.S. dollar-denominated, investment-grade, insured, tax-exempt debt publicly issued by U.S. municipalities in the U.S. domestic market. The Index is adjusted monthly and its constituents are capitalization-weighted based on their current amount outstanding. |
 |
Date |
|
9/1/2010 |
|
|
Price |
|
24.65 |
|
|
Bid/Ask Midpoint |
|
24.64 |
|
| |
|
NAV |
|
24.60 |
|
|
Bid/Ask Prem/Disc  |
|
0.04 |
|
|
Bid/Ask Prem/Disc |
|
0.15% |
|
|
|
|
|
|
| As of 6/30/2010 |
| Index History (%) | 1 Year | 3 Year | 5 Year | 10 Year | Fund Inceptiona |
| The BofA ML Nat Insured LT Core Plus Municipal Securities Index | 10.73 | | | | 4.12 |
| Barclays Capital Muni Insured Long 20 Year Index | 9.81 | | | | 4.81 |
| Barclays Capital Muni 20 Year Index | 11.80 | | | | 5.07 |
| Barclays Capital US Aggregate Index | 9.50 | | | | 7.16 |
|
| Fund History (%) | 1 Year | 3 Year | 5 Year | 10 Year | Fund Inceptiona |
| NAV | 12.15 | | | | 3.22 |
| After Tax Held | 10.59 | | | | 2.69 |
| After Tax Sold | 8.17 | | | | 2.89 |
| Market Price | 12.18 | | | | 2.94 |
| The initial publication date of The BofA Merrill Lynch National Insured LT Core Plus Municipal Securities Index is May 22, 2009. Index return data up to May 28, 2009 reflects that of the Merrill Lynch National Insured LT Core Municipal Securities Index. From May 28, 2009 forward, the index return data reflects that of The BofA Merrill Lynch National Insured LT Core Plus Municipal Securities Index. |
| aFund and underlying Index returns are based on the inception date of the Fund. Returns for the benchmark indexes are based on the closest month end to the Fund's inception date. |
As stated in the Fund's prospectus, the expense ratio of 0.35% is expressed as a unitary fee to cover expenses incurred in connection with managing the portfolio.
However, the Adviser has voluntarily agreed to waive 0.07% of its Advisory Fee for its investment
advisory services to the Fund. After giving effect to such voluntary waiver, the Advisory Fee
will be 0.28%. The Advisory Fee waiver may be amended or terminated at any time.
|
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 6/30/2010 |
 |
| Data beginning 10/31/2007, 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 |
Days |
50-99
Basis Points |
100-199
Basis Points |
H200
Basis Points |
50-99
Basis Points |
100-199
Basis Points |
H200
Basis Points |
| 6/30/2010 |
63 |
0 |
0 |
0 |
0 |
0 |
0 |
| 3/31/2010 |
61 |
0 |
0 |
0 |
0 |
0 |
0 |
| 12/31/2009 |
64 |
0 |
0 |
0 |
1 |
0 |
0 |
| 9/30/2009 |
63 |
1 |
0 |
0 |
0 |
0 |
0 |
| Fund Inception: 10/11/2007 |
|
Fund Holdings subject to change |
|
| | Coupon Rate | Maturity Date | Rating† | Weight |
| MIAMI-DADE CNTY FLA WTR & SWR REV 5.00% 10/01/2029 | 5.00% | 10/1/2029 | AAA/Aa2 | 3.48% |
| FULTON COUNTY GA SCH DIST 1.5% 12/30/2010 | 1.50% | 12/30/2010 | NR/NR | 3.04% |
| NORTH TEX TWY AUTH REV MUNI 5.75% 01/01/2038 | 5.75% | 1/1/2038 | AAA/Aa3 | 2.82% |
| NEW JERSEY ST TRANS TR FD MUNI 5.50% 12/15/2038 | 5.50% | 12/15/2038 | AAA/Aa3 | 2.68% |
| CHICAGO ILL 5% 01/01/2028 | 5.00% | 1/1/2028 | AAA/Aa2 | 2.01% |
| ATLANTA GA WTR & WASTEWTR REV 5.375% 11/01/2039 | 5.38% | 11/1/2039 | AAA/Aa3 | 1.86% |
| NEW JERSEY HEALTH CARE AUTH REV 5.5% 07/01/2038 | 5.50% | 7/1/2038 | AAA/NR | 1.73% |
| CORONA-NORCO CALIF UNI SCH DIST 5.375% 02/01/2034 | 5.38% | 2/1/2034 | AAA/Aa2 | 1.71% |
| MIAMI-DADE CNTY FLA AVIATION 5.125% 10/01/2041 | 5.13% | 10/1/2041 | AAA/Aa3 | 1.65% |
| MIAMI-DADE COUNTY FLORIDA EXPRESSWAY AUTHORITY | 5.00% | 7/1/2035 | AAA/AA3 | 1.65% |
| | % of Fund |
| 0 - 1 years | 3.04 |
| 1 - 5 | 1.13 |
| 5 - 10 | 0.00 |
| 10 - 15 | 1.55 |
| 15 - 20 | 21.40 |
| 20 - 25 | 21.57 |
| 25 and Over | 51.30 |
| |
| | % of Fund:
(S&P) | % of Fund:
(Moody's) |
| AAA/Aaa | 79.09 | 0.24 |
| AA/Aa | 7.31 | 79.46 |
| A/A | 4.89 | 5.94 |
| BBB/Baa | 0.74 | 1.37 |
| BB/Ba | 0.00 | 0.00 |
| B/B | 0.00 | 0.00 |
| Unrated | 7.96 | 12.99 |
|
†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.
Performance data quoted represents past performance. Past performance is no guarantee of future results. PowerShares Exchange-Traded Fund Trust II portfolios are not actively
managed and are subject to risk similar to stocks, including those related to short selling and margin maintenance. The PowerShares Insured National Municipal Bond Portfolio's return may not match the return of The BofA Merrill Lynch National Insured Long-Term Core Plus Municipal Securities
Index, as outlined in the prospectus. For actual Fund performance, please contact your financial advisor. Index performance does not reflect charges and expenses associated with the Fund or brokerage commissions associated with buying and selling Fund shares.
The value of the stocks in The BofA Merrill Lynch National Insured Long-Term Core Plus Municipal Securities
Index is likely to be more volatile than stocks of other issues. An investor in the Fund should anticipate that the value of their shares will increase or decease in value more or less in correlation with increases and decreases in the value of the Index. There are risks involved with investing in ETFs including the possible loss of money. The investment return and principal value of an investment in PowerShares Insured National Municipal Bond Portfolio will fluctuate so that shares, when sold, may be worth more or less than their original cost.
The Fund's return may not match the return of The BofA Merrill Lynch National Insured Long-Term Core Plus Municipal Securities
Index for a number of reasons. For example, the Fund incurs a number of operating expenses not applicable to The BofA Merrill Lynch National Insured Long-Term Core Plus Municipal Securities
Index, and incurs costs in buying and selling securities, especially when rebalancing the Fund's securities holdings to reflect changes in composition of the Index.
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 Fund may not be fully invested at times, either as a result of cash flows into the fund or reserves of cash held by the Fund to meet redemptions and expenses.
The Fund, using an "indexing" investment approach, attempts to replicate,
before fees and expenses, the performance of the Underlying Index. The Adviser
seeks correlation over time of 0.95% or better between the Fund's performance
and the performance of the Underlying Index. The Adviser will use a "sampling"
methodology in seeking to achieve the Fund's investment objective. Sampling
involves the use of quantitative analysis to select securities from the Underlying
Index to obtain a representative sample of municipal securities that have in the
aggregate investment characteristics similar to the Underlying Index based on
such factors as duration, maturity, credit quality, yield and coupon. The Adviser
generally expects the Fund to hold less than the total number of securities in the
Underlying Index but reserves the right to hold as many securities as it believes
necessary to achieve the Fund's investment objective.
Municipal securities are subject to risks including, but not limited to risks associated with litigation, legislation,
changes in taxation, or other political events, local business or economic conditions, bankruptcy of the
issuer or other circumstances that could have a significant effect on an issuer's ability to make payments of
principal and/or interest. In addition, changes in the financial condition of an individual municipal insurer
or conditions of the market in which the project was financed can affect the overall municipal market.
There is no guarantee that the Funds' income will be exempt from federal or state income taxes.
A substantial portion of the municipal securities held by the PowerShares Insured National Municipal
Bond Portfolio will be covered by insurance that guarantees the bond's scheduled payment of interest
and repayment of principal. Municipal security insurance does not insure against market fluctuations or
fluctuations in the Fund's share price. In addition, a municipal security insurance policy will not cover:
(i) repayment of a municipal security before maturity (redemption), (ii) prepayment or payment of an
acceleration premium (except for a mandatory sinking fund redemption) or any other provision of a bond
indenture that advances the maturity of the bond or (iii) nonpayment of principal or interest caused by
negligence or bankruptcy of the paying agent.
The Index may include small and medium-sized companies. Investing in securities of these companies involves greater risk than is customarily associated with investing in more established companies. These companies' stocks may be more volatile and less liquid than those of more established companies. These stocks may have returns that vary, sometimes significantly, from the overall stock market. Often smaller and medium capitalization companies and the industries in which they are focused are still evolving, and while this may offer better growth potential than larger, more established companies, it may also make them more sensitive to changing market conditions.
Please review a copy of the prospectus carefully prior to investing. The prospectus provides a detailed explanation of the costs of investing, including the Total Annual Fund Operating Expenses. You may purchase or sell PowerShares Insured
National Municipal Bond Portfolio shares throughout the day through any brokerage account, which will result in typical brokerage commissions. However, only Authorized Participants may create or redeem PowerShares Insured National Municipal Bond Portfolio shares directly from the Trust in large block creation/redemption units. The PowerShares Insured
National Municipal Bond Portfolio is obligated to distribute portfolio gains to shareholders, and trading Fund shares may generate tax consequences.
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 Units only, typically consisting of aggregations of 100,000 shares.
The Fund is not sponsored or endorsed by the American Stock Exchange (AMEX), and the AMEX makes no warranty or representation as to the accuracy and/or
completeness of the Indexes or the results to be obtained by any person from the use of the Indexes or the trading of the Fund shares.
The Barclays Capital Insured Index and the
Barclays Capital 20 Year Municipal Bond Index are
unmanaged indexes of insured municipal securities
and municipal bonds with a remaining maturity of
17 to 22 years, respectively. The Barclays Capital U.S. Aggregate Index is an unmanaged index considered representative of the U.S. investment-grade, fixed-rate bond market. Except where indicated otherwise, all information is as of date noted, and Invesco PowerShares Capital Management LLC is either the source of such data or has obtained it from third-party financial reporting sources.
PowerShares Insured National Municipal Bond Portfolio is subject to risks similar to those of stocks, including those regarding short selling and margin account maintenance. Usual brokerage commissions apply.
"Merrill Lynch" and "BofA Merrill Lynch National Insured Long-Term Core Plus Municipal Securities Index" are reprinted with permission. © Copyright Merrill Lynch, Pierce, Fenner & Smith Incorporated. All rights reserved. "Merrill Lynch" and
"BofA Merrill Lynch National Insured Long-Term Core Plus Municipal Securities Index" are service marks of Merrill Lynch and have been licensed for use for certain purposes by Invesco PowerShares Capital Management LLC. The PowerShares Insured National
Municipal Bond Portfolio is based on The BofA Merrill Lynch National Insured Long-Term
Core Plus Municipal Securities Index and is not sponsored, endorsed, sold or promoted by Merrill Lynch. Merrill Lynch, as Index Provider,
makes no representation, express or implied, regarding the advisability of investing in this product or
the Index and does not guarantee the quality, accuracy or completeness of the Index or any Indexrelated
data included herein or derived there from and assumes no liability in connection with their
use. As the Index Provider, Merrill Lynch is licensing certain trademarks, the underlying Index and trade
names which are composed by Merrill Lynch without regard to PowerShares, the Issuer, this product or
any investor.
For more information regarding PowerShares Insured
National Municipal Bond Portfolio or any of the Invesco PowerShares products, please call 800.983.0903.
