The PowerShares Chinese Yuan Dim Sum Bond Portfolio (Fund) seeks investment results that generally correspond (before fees and expenses) to the price and yield performance of the Citigroup Dim Sum (Offshore CNY) Bond Index (the “Underlying Index”). The Fund normally will invest at least 80% of its total assets in Chinese Renminbi (RMB)-denominated bonds that comprise the Underlying Index. The Underlying Index includes securities with a minimum maturity of one year and with an outstanding principal amount of RMB 1 billion. The Underlying Index is composed of RMB-denominated bonds issued by governments, agencies, supranationals and credit securities, excluding synthetics, retails and CDs. The Fund and the Index are rebalanced and reconstituted monthly. |
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Date |
|
5/22/2013 |
|
|
Price |
|
25.52 |
|
|
Bid/Ask Midpoint  |
|
25.52 |
|
| |
|
NAV |
|
25.40 |
|
|
Bid/Ask Prem/Disc |
|
0.12 |
|
|
Bid/Ask Prem/Disc |
|
0.47% |
|
|
|
|
|
|
| Index History (%) | YTD | 1 Year | 3 Year | 5 Year | 10 Year | Fund Inception |
| Citigroup Dim Sum (Offshore CNY) Bond Index | 2.32 | 7.04 | | | | 7.27 |
| BofA Merrill Lynch Global Broad Market Non-Sovereign ex-USD Index | -2.56 | 2.28 | 4.57 | 2.79 | 6.42 | 3.16 |
| Fund History (%) | YTD | 1 Year | 3 Year | 5 Year | 10 Year | Fund Inception |
| NAV | 2.25 | 7.09 | | | | 6.27 |
| After Tax Held | 1.89 | 5.84 | | | | 5.06 |
| After Tax Sold | 1.27 | 4.19 | | | | 4.34 |
| Market Price | 2.31 | 6.21 | | | | 4.04 |
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 9/30/2011, 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 The results assume that no cash was added to or assets withdrawn from the Index.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 |
44 |
0 |
0 |
0 |
0 |
0 |
| 12/31/2012 |
62 |
38 |
0 |
0 |
0 |
0 |
0 |
| 9/30/2012 |
63 |
12 |
0 |
0 |
0 |
0 |
0 |
| 6/30/2012 |
63 |
16 |
10 |
0 |
0 |
0 |
0 |
| Year Ended 2012 |
250 |
82 |
43 |
1 |
0 |
0 |
1 |
| Fund Inception: 9/23/2011 |
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.
| VTB BANK-VTB CAPITAL SA REGS 10-15 | 4.50% | 10/30/2015 | BBB/Baa1 | 3.93% |
|
2.
| CHINA GOVERNMENT BND REGS | 1.40% | 8/18/2016 | AA-/Aa3 | 2.89% |
|
3.
| CHINA GOVERNMENT BOND REGS | 3.48% | 6/29/2027 | AA-/Aa3 | 2.86% |
|
4.
| BIG WILL INVESTMENTS LTD 04-14 | 7.00% | 4/29/2014 | NR/NR | 2.44% |
|
5.
| CHINA GOVERNMENT BOND 12-20 | 2.48% | 12/1/2020 | AA-/Aa3 | 2.39% |
|
6.
| NEW WORLD CHINA LAND | 8.50% | 4/11/2015 | NR/NR | 2.34% |
|
7.
| GLOBAL LOGISTIC PROPERTI | 3.38% | 5/11/2016 | NR/Baa2 | 2.32% |
|
8.
| BITRONIC LIMITED | 4.00% | 12/12/2015 | NR/NR | 2.21% |
|
9.
| AGRICULTURAL BANK CHINA | 3.20% | 11/28/2015 | NR/NR | 2.19% |
|
10.
| ASIAN DEVELOPMENT BANK 10-20 | 2.85% | 10/21/2020 | AAA/Aaa | 2.18% |
| | % of Fund |
| 0 - 1 years | 5.04 |
| 1 - 5 years | 81.33 |
| 5 - 10 years | 9.41 |
| 10 - 15 years | 4.23 |
| 15 - 20 years | 0.00 |
| 20 - 25 years | 0.00 |
| 25 years and Over | 0.00 |
| | |
†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.
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.
The Fund may invest 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.
Global bonds are subject to the same risks as other debt issues, notably credit risk, market risk, interest rate risk and liquidity risk. Investments in the securities of non-U.S. issuers involve risks beyond those associated with investments in U.S. securities, including greater market volatility, the availability of less reliable financial information, higher transactional costs, taxation by foreign governments, decreased market liquidity and political instability.
Adverse economic conditions, such as unfavorable or volatile currency exchange rates and interest rates, political events or other conditions may cause the Chinese government to intervene and impose "capital controls," including the prohibition of, or restrictions on, the ability to transfer currency, securities or other assets.
There are special risks associated with investing in securities designed to provide exposure to Chinese RMB, such as RMB-denominated bonds in which the Fund will invest. The Chinese government maintains strict currency controls and regularly intervenes in the currency market. As a result, the value of the Yuan, and the value of RMB-denominated securities, may change quickly and arbitrarily, potentially impacting the availability, liquidity, and pricing of securities designed to provide offshore investors with exposure to Chinese markets.
The Fund invests at least 80% of its assets in Chinese RMB-denominated bonds issued and settled outside of mainland China. Because the Fund’s net asset value (NAV) is determined in U.S. dollars, the NAV could decline if the currency of the non- U.S. market in which the Fund invests depreciates against the U.S. dollar, even if the value of the Fund’s holdings increases, as measured in the foreign currency, including securities denominated in the Chinese RMB. In addition, if the Chinese currencies, the RMB, which is traded in mainland China and the Yuan, which is traded off-shore (traded as "CNH" in Hong Kong), diverge in value, that divergence could negatively impact the Fund.
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.
The Fund is considered non-diversified and may be subject to greater risks 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.
Unlike most ETFs, the Fund currently intends to effect redemptions principally for cash and partially in-kind, rather than primarily in-kind redemptions 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 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.
Sovereign debt securities are subject to the additional risk that — under some political, diplomatic, social or economic circumstances — some developing countries that issue lower quality debt securities may be unable or unwilling to make principal or interest payments as they come due. The fund may have limited legal recourse against the issuer and/or guarantor of sovereign debt when default occurs. As a holder of government debt, the Fund may be requested to participate in the rescheduling of such debt and to extend further loans to government debtors.
The BofA Merrill Lynch Global Broad Market Index tracks the performance of investment grade debt publicly issued in the major domestic and eurobond markets.
The Fund is not sponsored, endorsed, sold or promoted by Citigroup Index LLC (Citigroup Index) or any of its affiliates (collectively, Citigroup). Citigroup Index makes no representation or warranty, express or implied, to the owners or prospective owners of shares of the Fund or any member of the public regarding the advisability of investing in securities generally or in the Fund particularly, or the ability of the Fund to track the price and yield performance of the Dim Sum Bond Index or the ability of the Dim Sum Bond Index to track general bond market performance.
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