The PowerShares Fundamental Investment Grade Corporate Bond Portfolio (Fund) is based on the RAFI® Bonds US Investment Grade 1-10 Index (Index). The Fund will normally invest at least 80% of its total assets in the securities that comprise the Index. The Index is comprised of US dollar-denominated bonds registered for sale in the United States whose issuers are public companies listed on major US stock exchanges. Only non-convertible, non-exchangeable, non-zero, fixed coupon investible investment grade corporate bonds with greater than one year to maturity qualify for inclusion in the Underlying Index. Based on the Fundamental Index® methodology developed by Research Affiliates, LLC, the Index is compiled and calculated by Ryan ALM, Inc. The Fund and the Index are rebalanced monthly and reconstituted annually in March.
Effective Dec. 31, 2012, the name of the RAFI® Investment Grade Bond Index changed to the RAFI® Bonds US Investment Grade 1-10 Index. |
 |
Date |
|
5/24/2013 |
|
|
Price |
|
25.69 |
|
|
Bid/Ask Midpoint  |
|
25.58 |
|
| |
|
NAV |
|
25.63 |
|
|
Bid/Ask Prem/Disc |
|
-0.05 |
|
|
Bid/Ask Prem/Disc |
|
-0.20% |
|
|
|
|
|
|
| Index History (%) | YTD | 1 Year | 3 Year | 5 Year | 10 Year | Fund Inception |
| RAFI Bonds US Investment Grade 1-10 Index | 0.53 | 5.60 | 7.05 | | | 5.83 |
| Barclays U.S. Corporate Index | -0.11 | 7.47 | 8.12 | 7.88 | 6.05 | 7.62 |
| Barclays U.S. Aggregate Index | -0.12 | 3.77 | 5.52 | 5.47 | 5.02 | 3.60 |
| Fund History (%) | YTD | 1 Year | 3 Year | 5 Year | 10 Year | Fund Inception |
| NAV | 0.49 | 5.13 | | | | 4.89 |
| After Tax Held | 0.27 | 4.28 | | | | 4.04 |
| After Tax Sold | 0.27 | 3.04 | | | | 3.43 |
| Market Price | 0.14 | 4.41 | | | | 4.81 |
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 |
0 |
0 |
0 |
0 |
0 |
0 |
| 12/31/2012 |
62 |
1 |
0 |
0 |
0 |
0 |
0 |
| 9/30/2012 |
63 |
4 |
0 |
0 |
0 |
0 |
0 |
| 6/30/2012 |
63 |
3 |
0 |
0 |
0 |
0 |
0 |
| Year Ended 2012 |
250 |
34 |
7 |
0 |
0 |
0 |
0 |
| Fund Inception: 9/15/2011 |
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.
| Merrill Lynch & Co Inc | 6.88% | 04/25/2018 | A-/Baa2 | 1.34% |
|
2.
| Berkshire Hathaway Finance Corp | 5.40% | 05/15/2018 | AA/Aa2 | 1.31% |
|
3.
| ConocoPhillips | 4.60% | 01/15/2015 | A/A1 | 1.18% |
|
4.
| Wal-Mart Stores Inc | 3.25% | 10/25/2020 | AA/Aa2 | 1.10% |
|
5.
| Chevron Corp | 2.36% | 12/05/2022 | AA/Aa1 | 1.08% |
|
6.
| Mondelez International Inc | 4.13% | 02/09/2016 | BBB-/Baa2 | 1.03% |
|
7.
| Hewlett-Packard Co | 6.13% | 03/01/2014 | BBB+/Baa1 | 0.99% |
|
8.
| Citigroup Inc | 6.13% | 11/21/2017 | A-/Baa2 | 0.93% |
|
9.
| Goldman Sachs Group Inc/The | 6.15% | 04/01/2018 | A-/A3 | 0.93% |
|
10.
| KeyCorp | 5.10% | 03/24/2021 | BBB+/Baa1 | 0.92% |
| | % of Fund |
| 0 - 1 years | 3.98 |
| 1 - 5 years | 42.26 |
| 5 - 10 years | 53.76 |
| 10 - 15 years | 0.00 |
| 15 - 20 years | 0.00 |
| 20 - 25 years | 0.00 |
| 25 years and over | 0.00 |
| | |
As of 5/24/2013
†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.
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.
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.
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 exists when a particular investment is difficult to purchase or sell. If the Fund invests in illiquid securities or current portfolio securities become illiquid, it may reduce the returns of the Fund because the Fund may be unable to sell the illiquid securities at an advantageous time or price.
The Fund is considered non-diversified and may be subject to greater risks than a diversified fund.
The Barclays U.S. Corporate Index is an unmanaged index considered representative of fixed-rate, investment-grade taxable bond debt. The Barclays U.S. Aggregate Index is an unmanaged index considered representative of the U.S. investment-grade, fixed-rate bond market.
Fundamental Index®, Research Affiliates®, RAFI® and all other RA trademarks, trade names, patented and patent-pending concepts are the exclusive property of Research Affiliates, LLC. The RAFI® Bonds US Investment Grade 1-10 Index is calculated and maintained by ALM Research Solutions, Inc. (a wholly owned subsidiary of Ryan ALM, Inc.) in conjunction with Research Affiliates, LLC and is the exclusive property of Research Affiliates.
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