The PowerShares High Yield Corporate Bond Portfolio (Fund) is based on the Wachovia High Yield Bond Index (Index). The Fund will normally invest at least 80% of its total assets in securities that comprise the Index. The Index measures potential returns of a theoretical portfolio of high-yield corporate bonds that are rated below investment grade by Moody's, S&P or Fitch and are payable in U.S. dollars. The Index evaluates securities quarterly using an equal-weighting methodology based on a defined set of qualifying criteria established by Wachovia Cap Markets. |
 |
Date |
|
11/19/2009 |
|
|
Price |
|
17.68 |
|
|
Bid/Ask Midpoint |
|
17.66 |
|
| |
|
NAV |
|
17.52 |
|
|
Bid/Ask Prem/Disc  |
|
0.14 |
|
|
Bid/Ask Prem/Disc |
|
0.77% |
|
|
|
|
|
|
| As of 9/30/2009 |
| Index History (%) | 1 Year | 3 Year | 5 Year | 10 Year | Fund Inceptiona |
| Wachovia High Yield Bond Index | 8.94 | | | | -3.22 |
| Barclays Capital High Yield Treasury Index | 22.34 | | | | 4.02 |
| S&P 500 Index | -6.91 | | | | -16.05 |
|
| Fund History (%) | 1 Year | 3 Year | 5 Year | 10 Year | Fund Inceptiona |
| NAV | -0.12 | | | | -8.20 |
| After Tax Held | -3.77 | | | | -11.22 |
| After Tax Sold | -0.47 | | | | -8.66 |
| Market Price | 7.42 | | | | -8.87 |
| 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. |
Total returns are based on the closing market price. 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 9/30/2009 |
 |
| Data beginning 11/30/2007, 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 The results assume that no cash was added to or assets withdrawn from the Index.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 |
| 12/31/2009 |
22 |
10 |
4 |
0 |
1 |
0 |
0 |
| 9/30/2009 |
63 |
28 |
26 |
0 |
2 |
1 |
0 |
| 6/30/2009 |
63 |
6 |
43 |
10 |
1 |
0 |
0 |
| 3/31/2009 |
61 |
2 |
7 |
39 |
0 |
3 |
3 |
| Fund Inception: 11/15/2007 |
|
Fund Holdings subject to change |
|
| | Coupon Rate | Maturity Date | Rating† | Weight |
| FREESCALE SEMICONDUCTOR 8.875% 12/15/2014 | 8.88% | 12/15/2014 | CCC/CAA2 | 2.21% |
| HEXION US FIN/NOVA SCOTIA 9.75% 11/15/2014 WI | 9.75% | 11/15/2014 | CCC/CAA1 | 2.18% |
| OPTI CANADA INC 8.25% 12/15/2014 | 8.25% | 12/15/2014 | B/Caa1 | 2.10% |
| FORD MOTOR CRED 7 10/1/2013 | 7.00% | 10/1/2013 | CCC+/Caa1 | 2.10% |
| CONSTELLATION BRANDS INC 7.25% 09/01/2016 | 7.25% | 9/1/2016 | BB-/Ba3 | 2.09% |
| CROWN CASTLE INTL CORP 9.0% 1/15/2015 | 9.00% | 1/15/2015 | B+/B2 | 2.06% |
| BE AEROSPACE INC 8.5% 07/01/2018 | 8.50% | 7/1/2018 | BB+/Ba3 | 2.06% |
| FORREST OIL 7.25% 6/15/2019 | 7.25% | 6/15/2019 | BB-/B1 | 2.06% |
| SUNGARD 10.25% 8/15/2015 | 1.25% | 8/15/2015 | B-/Caa1 | 2.05% |
| NRG ENERGY INC 7.3750% 2/01/2016 | 7.38% | 2/1/2016 | BB-/B1 | 2.05% |
| | % of Fund |
| 0 - 1 years | 0.00 |
| 1 - 5 | 10.07 |
| 5 - 10 | 86.31 |
| 10 - 15 | 0.00 |
| 15 - 20 | 0.00 |
| 20 - 25 | 3.62 |
| 25 and Over | 0.00 |
| |
| | % of Fund:
(S&P) | % of Fund:
(Moody's) |
| AAA/Aaa | 0.00 | 0.00 |
| AA/Aa | 0.00 | 0.00 |
| A/A | 0.00 | 0.00 |
| BBB/Baa | 0.00 | 0.00 |
| BB/Ba | 40.29 | 28.10 |
| B/B | 43.71 | 41.80 |
| Other | 16.00 | 30.10 |
|
As of 11/19/2009
†The credit quality of the Fund's holdings represents the weighted average quality rating of the securities in the portfolio as assigned by Nationally Recognized Statistical Rating Organizations based on assessment of the credit worthiness of the underlying securities. The ratings range from AAA (highest) to D (lowest).
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 High Yield Corporate Bond Portfolio's return may not match the return of the Wachovia High Yield Bond 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 securities in the Wachovia High Yield Bond Index is likely to be more volatile than securities 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 High Yield Corporate 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 Wachovia High Yield Bond Index for a number of reasons. For example, the Fund incurs a number of operating expenses not applicable to the Wachovia High Yield Bond 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 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. If the Fund utilizes a sampling approach or futures or other derivative positions, its return may not correlate as well with the return on the Wachovia High Yield Bond Index, as would be the case if it purchased all the securities in the Index, with the same weightings as the Index.
There are special risks associated with investing in high yield bonds including, but not limited to: high yield securities generally offer a higher current yield than that available from higher grade issues, but typically involve greater risk. Securities rated below investment grade are commonly referred to as “junk bonds.” The ability of issuers of high yield securities to make timely payments of interest and principal may be adversely impacted by adverse changes in general economic conditions, changes in the financial condition of their issuers and price fluctuation in response to changes in interest. Periods of economic downturn or rising interest rates may cause the issuers of high yield securities to experience financial distress, which could adversely impact their ability to make timely payments of principal and interest and increase the possibility of default. The market value and liquidity of high yield securities may be negatively impacted by adverse publicity and investor perceptions, whether or not based on fundamental analysis, especially in a markets characterized by a low volume of trading. Global bonds are subject to the same risks as other debt issues, notably credit risk, market risk and liquidity risk. To a limited extent, they may also subject to certain sovereign risks. Generally, investments in the securities of non-U.S. issuers involve risks beyond those associated with investments in U.S. securities. Please see the prospectus for more complete risk information.
Wachovia Corporation and Wachovia Cap Markets, (collectively, “Wachovia”) serve as Index Provider for the PowerShares High Yield USD Bond Portfolio and own intellectual property rights in the underlying index.
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 High Yield Corporate 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 High Yield Corporate Bond Portfolio shares directly from the Trust in large block creation/redemption units. The PowerShares High Yield Corporate 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, endorsed, sold or promoted by Wachovia Corporation or its affiliates and Wachovia Corporation makes no representation regarding the advisability of investing in the Fund. 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 U.S. Corporate High-Yield Index covers the U.S. dollar-denominated, non-investment grade, fixed-rate, taxable corporate bond market. The
S&P 500® Index is an unmanaged index considered
representative of the U.S. stock 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.
Shares of the PowerShares High Yield Corporate Bond Portfolio are subject to risks similar to those of stocks, including those regarding short selling and margin account maintenance. Usual brokerage commissions apply.
For more information regarding PowerShares High Yield Corporate Bond Portfolio or any of the Invesco PowerShares products, please call 800.983.0903.
