UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number | 811-21265 | |||||||
| ||||||||
PowerShares Exchange-Traded Fund Trust | ||||||||
(Exact name of registrant as specified in charter) | ||||||||
| ||||||||
301 W. Roosevelt Road |
| 60187 | ||||||
(Address of principal executive offices) |
| (Zip code) | ||||||
| ||||||||
Andrew Schlossberg President 301 W. Roosevelt Road Wheaton, IL 60187 | ||||||||
(Name and address of agent for service) | ||||||||
| ||||||||
Registrant’s telephone number, including area code: | 800-983-0903 |
| ||||||
| ||||||||
Date of fiscal year end: | April 30 |
| ||||||
| ||||||||
Date of reporting period: | April 30, 2010 |
| ||||||
Item 1. Reports to Stockholders.
The Registrant’s annual report transmitted to shareholders pursuant to Rule 30e-1 under the Investment Company Act of 1940 is as follows:
2010 Annual Report to Shareholders
April 30, 2010
PowerShares Dynamic MagniQuant Portfolio
PowerShares Dynamic Market Portfolio
PowerShares Dynamic OTC Portfolio
PowerShares FTSE RAFI US 1000 Portfolio
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio
PowerShares NXQ Portfolio
Table of Contents
The Market Environment | 2 | ||||||
Manager's Analysis | 4 | ||||||
Frequency Distribution of Discounts & Premiums | 16 | ||||||
Fees and Expenses | 18 | ||||||
Broad Market Portfolios | |||||||
Schedules of Investments | |||||||
PowerShares Dynamic MagniQuant Portfolio | 19 | ||||||
PowerShares Dynamic Market Portfolio | 22 | ||||||
PowerShares Dynamic OTC Portfolio | 24 | ||||||
PowerShares FTSE RAFI US 1000 Portfolio | 26 | ||||||
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio | 37 | ||||||
PowerShares NXQ Portfolio | 53 | ||||||
Statements of Assets and Liabilities | 54 | ||||||
Statements of Operations | 56 | ||||||
Statements of Changes in Net Assets | 58 | ||||||
Financial Highlights | 60 | ||||||
Notes to Financial Statements | 63 | ||||||
Report of Independent Registered Public Accounting Firm | 74 | ||||||
Tax Information | 75 | ||||||
Proxy Results | 76 | ||||||
Trustees and Officers | 77 | ||||||
Board Considerations Regarding Continuation of Investment Advisory Agreements | 84 | ||||||
The Market Environment
For the fiscal year ended April 30, 2010 (the "reporting period"), the U.S. markets recouped more than their previous year's losses. With the government's bank support programs firmly in place, the U.S. economy rebounded from its worst recession since the 1920s and U.S. equity markets rallied accordingly during the same period with the following performance: S&P 500® Index returned 38.82%, Dow Jones Industrial Index returned 38.61% and NASDAQ-100® Index returned 44.44%. As a result of the tremendous government assistance provided to U.S. banks, insurers, and automotive companies, consumer discretionary and financial stocks surged the most out of the ten S&P 500® sectors. Despite the sharp rise in U.S. equity prices, almost $23 billion in outflows occurred during this timeframe (based on Investment Company Institute statistics) as investors re-allocated their assets to income-g enerating products.
Interest rates remained at historically low levels, which supported bond prices during the reporting period. With the exception of U.S. Treasuries, fixed income markets enjoyed unprecedented gains in both total returns and inflows over the reporting period. Despite a newfound aversion to equity risk, investors put the most money to work in the riskiest bond sectors. As a result, higher beta bond sectors performed the best during the reporting period. For example, the Bank of America Merrill Lynch (BAML) U.S. High Yield Master II Index returned 44.20%, while the BAML U.S. Corporate, Government & Mortgage Index (prev. Domestic Master) returned 7.84% during the reporting period. Municipal bonds benefited from low supply and the establishment of the Build America Bond (BAB) program. As a result, the BAML Municipal Master Index returned 9.73% and the BAML BAB Index returned 9.60%. According to ICI statistics, domestic bond funds grew at a record pace during the reporting period, experiencing $353.5 billion in taxable inflows and $68.5 billion in municipal bond inflows.
2
This page intentionally left blank
Manager's Analysis
PowerShares Dynamic MagniQuant Portfolio (ticker: PIQ)
The PowerShares Dynamic MagniQuant Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Top 200 Dynamic IntellidexSM Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 34.54%. Over this same year, the Index returned 35.74%, while the S&P 500® Equal Weight Index returned 51.65%. The Fund benefited from positive performance in information technology, consumer discretionary and health care sectors. Fund performance was positive within each sector for the reporting period.
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Consumer Discretionary | 30.7 | ||||||
Information Technology | 21.0 | ||||||
Industrials | 14.6 | ||||||
Materials | 10.3 | ||||||
Health Care | 9.1 | ||||||
Consumer Staples | 8.0 | ||||||
Financials | 4.7 | ||||||
Telecommunication Services | 0.6 | ||||||
Energy | 0.5 | ||||||
Utilities | 0.5 | ||||||
Money Market Fund | 0.2 | ||||||
Other | (0.2 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Small-Cap Value | 26.9 | ||||||
Mid-Cap Value | 19.0 | ||||||
Mid-Cap Growth | 17.0 | ||||||
Large-Cap Growth | 13.5 | ||||||
Small-Cap Growth | 12.0 | ||||||
Large-Cap Value | 11.6 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
Select Comfort Corp. | 0.7 | ||||||
Dollar Thrifty Automotive Group, Inc. | 0.7 | ||||||
Phillips-Van Heusen Corp. | 0.7 | ||||||
Entercom Communications Corp. | 0.6 | ||||||
PolyOne Corp. | 0.6 | ||||||
KapStone Paper and Packaging Corp. | 0.6 | ||||||
SanDisk Corp. | 0.6 | ||||||
RF Micro Devices, Inc. | 0.6 | ||||||
Maidenform Brands, Inc. | 0.6 | ||||||
Clearwater Paper Corp. | 0.6 | ||||||
Total | 6.3 |
4
Manager's Analysis (Continued)
PowerShares Dynamic MagniQuant Portfolio (ticker: PIQ)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2010 | ||||||||||||||||||
Avg. Ann.†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg. Ann.†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
Top 200 Dynamic IntellidexSM Index | 35.74 | % | -5.68 | % | -1.97 | % | -6.81 | % | |||||||||||
S&P 500® Equal Weight Index | 51.65 | % | -2.48 | % | 1.79 | % | 6.56 | % | |||||||||||
Russell 3000® Index | 40.90 | % | -4.56 | % | -0.54 | % | -1.92 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 34.54 | % | -6.39 | % | -2.69 | % | -9.22 | % | |||||||||||
Share Price Return | 34.62 | % | -6.40 | % | -2.66 | % | -9.11 | % |
Fund Inception: October 12, 2006
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.87%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.65% while the Fund's total gross operating expense ratio was 0.98%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P 500® Equal Weight Index and Russell 3000® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 500 and 2,942 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
5
Manager's Analysis
PowerShares Dynamic Market Portfolio (ticker: PWC)
The PowerShares Dynamic Market Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Dynamic Market IntellidexSM Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 29.75%. Over this same year, the Index returned 30.76%, while the Russell 3000® Index returned 40.90%. The Fund benefited from positive performance in information technology, health care and consumer discretionary sectors. Fund performance was positive within each sector.
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Information Technology | 18.3 | ||||||
Financials | 14.3 | ||||||
Health Care | 12.1 | ||||||
Consumer Discretionary | 11.8 | ||||||
Industrials | 11.4 | ||||||
Energy | 10.9 | ||||||
Consumer Staples | 10.1 | ||||||
Utilities | 4.6 | ||||||
Materials | 4.1 | ||||||
Telecommunication Services | 2.3 | ||||||
Money Market Fund | 0.1 | ||||||
Other | (0.0 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Large-Cap Value | 38.1 | ||||||
Large-Cap Growth | 24.2 | ||||||
Mid-Cap Growth | 12.8 | ||||||
Small-Cap Growth | 10.4 | ||||||
Mid-Cap Value | 9.0 | ||||||
Small-Cap Value | 5.5 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
Occidental Petroleum Corp. | 3.8 | ||||||
Colgate-Palmolive Co. | 3.5 | ||||||
National Oilwell Varco, Inc. | 3.4 | ||||||
General Mills, Inc. | 3.4 | ||||||
Edison International | 3.2 | ||||||
International Paper Co. | 3.1 | ||||||
Intel Corp. | 2.7 | ||||||
Texas Instruments, Inc. | 2.6 | ||||||
Microsoft Corp. | 2.6 | ||||||
3M Co. | 2.6 | ||||||
Total | 30.9 |
6
Manager's Analysis (Continued)
PowerShares Dynamic Market Portfolio (ticker: PWC)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2010 | ||||||||||||||||||||||
Avg. Ann.†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Year | 5 Year | Avg. Ann.†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Dynamic Market IntellidexSM Index | 30.76 | % | -7.38 | % | 2.01 | % | 7.41 | % | 64.95 | % | |||||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | 2.63 | % | 5.84 | % | 48.76 | % | |||||||||||||
Russell 3000® Index | 40.90 | % | -4.56 | % | 3.28 | % | 6.68 | % | 57.29 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | 29.75 | % | -7.89 | % | 1.56 | % | 6.79 | % | 58.35 | % | |||||||||||||
Share Price Return | 29.80 | % | -7.88 | % | 1.58 | % | 6.78 | % | 58.33 | % |
Fund Inception: May 1, 2003
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay during previous fiscal periods certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.60%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) and total gross operating expense ratio was determined to be 0.60%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in t he Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P 500® Index and Russell 3000® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 500 and 2,942 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
7
Manager's Analysis
PowerShares Dynamic OTC Portfolio (ticker: PWO)
The PowerShares Dynamic OTC Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Dynamic OTC IntellidexSM Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 37.73%. Over this same year, the Index returned 38.67%, while the NASDAQ-100® Index returned 44.44%. The Fund benefited from positive performance in information technology, health care and consumer discretionary sectors. Fund performance was positive within each sector for the reporting period.
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Information Technology | 53.1 | ||||||
Consumer Discretionary | 14.5 | ||||||
Health Care | 14.5 | ||||||
Financials | 7.8 | ||||||
Industrials | 5.4 | ||||||
Consumer Staples | 2.0 | ||||||
Telecommunication Services | 1.1 | ||||||
Energy | 0.9 | ||||||
Materials | 0.7 | ||||||
Money Market Fund | 0.1 | ||||||
Other | (0.1 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Mid-Cap Growth | 38.1 | ||||||
Large-Cap Growth | 26.0 | ||||||
Small-Cap Value | 15.2 | ||||||
Small-Cap Growth | 15.1 | ||||||
Mid-Cap Value | 5.6 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
SanDisk Corp. | 3.8 | ||||||
Apple, Inc. | 3.6 | ||||||
F5 Networks, Inc. | 3.4 | ||||||
Intel Corp. | 3.1 | ||||||
Cisco Systems, Inc. | 3.1 | ||||||
VeriSign, Inc. | 3.1 | ||||||
BMC Software, Inc. | 3.0 | ||||||
Microsoft Corp. | 3.0 | ||||||
Fiserv, Inc. | 3.0 | ||||||
Automatic Data Processing, Inc. | 2.9 | ||||||
Total | 32.0 |
8
Manager's Analysis (Continued)
PowerShares Dynamic OTC Portfolio (ticker: PWO)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2010 | ||||||||||||||||||||||
Avg. Ann.†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Year | 5 Year | Avg. Ann.†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Dynamic OTC IntellidexSM Index | 38.67 | % | -5.75 | % | 1.87 | % | 7.46 | % | 65.43 | % | |||||||||||||
NASDAQ Composite Index | 43.32 | % | -0.85 | % | 5.07 | % | 7.70 | % | 68.08 | % | |||||||||||||
NASDAQ-100® Index | 44.44 | % | 2.93 | % | 7.66 | % | 9.34 | % | 86.78 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | 37.73 | % | -6.30 | % | 1.35 | % | 6.82 | % | 58.66 | % | |||||||||||||
Share Price Return | 37.73 | % | -6.31 | % | 1.34 | % | 6.80 | % | 58.46 | % |
Fund Inception: May 1, 2003
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.74%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.60% while the Fund's total gross operating expense ratio was 0.85%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
The Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The NASDAQ Composite Index and NASDAQ-100® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 3,087 and 100 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
9
Manager's Analysis
PowerShares FTSE RAFI US 1000 Portfolio (ticker: PRF)
The PowerShares FTSE RAFI US 1000 Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the FTSE RAFI U.S. 1000 Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 54.57%. Over this same year, the Index returned 55.05%, while the S&P 500® Index returned 38.82%. The Fund benefited from positive performance in the financials, consumer discretionary, and industrials sectors. The Fund did not suffer from negative performance in any of the sectors in which it was invested.
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Financials | 21.9 | ||||||
Industrials | 11.9 | ||||||
Energy | 11.7 | ||||||
Consumer Discretionary | 11.6 | ||||||
Information Technology | 10.9 | ||||||
Consumer Staples | 9.5 | ||||||
Health Care | 8.9 | ||||||
Utilities | 5.5 | ||||||
Telecommunication Services | 4.4 | ||||||
Materials | 3.7 |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Large-Cap Value | 42.7 | ||||||
Large-Cap Growth | 30.7 | ||||||
Mid-Cap Value | 13.4 | ||||||
Mid-Cap Growth | 8.2 | ||||||
Small-Cap Value | 3.3 | ||||||
Small-Cap Growth | 1.7 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
Exxon Mobil Corp. | 2.9 | ||||||
General Electric Co. | 2.5 | ||||||
Bank of America Corp. | 2.3 | ||||||
AT&T, Inc. | 2.1 | ||||||
Chevron Corp. | 1.8 | ||||||
Microsoft Corp. | 1.7 | ||||||
Citigroup, Inc. | 1.7 | ||||||
JPMorgan Chase & Co. | 1.6 | ||||||
Wells Fargo & Co. | 1.5 | ||||||
ConocoPhillips | 1.5 | ||||||
Total | 19.6 |
10
Manager's Analysis (Continued)
PowerShares FTSE RAFI US 1000 Portfolio (ticker: PRF)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2010 | ||||||||||||||||||
Avg. Ann.†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg. Ann.†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
FTSE RAFI U.S. 1000 Index | 55.05 | % | -2.48 | % | 3.60 | % | 16.66 | % | |||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | 0.95 | % | 4.19 | % | |||||||||||
Russell 1000® Index | 40.21 | % | -4.71 | % | 1.22 | % | 5.37 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 54.57 | % | -2.87 | % | 3.08 | % | 14.12 | % | |||||||||||
Share Price Return | 54.66 | % | -2.87 | % | 3.15 | % | 14.48 | % |
Fund Inception: December 19, 2005
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.46%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.39% while the Fund's total gross operating expense ratio was 0.45%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P 500® Index and Russell 1000® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 500 and 1,000 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
11
Manager's Analysis
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (ticker: PRFZ)
The PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the FTSE RAFI U.S. 1500 Small-Mid Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 72.38%. Over this same year, the Index returned 72.14%, while the S&P Small Cap 600® Index returned 47.79%. The Fund benefited from positive performance in the consumer discretionary, information technology, and industrials sectors. The Fund was positive within each sector in which it was invested.
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Financials | 22.0 | ||||||
Industrials | 19.1 | ||||||
Consumer Discretionary | 18.7 | ||||||
Information Technology | 15.9 | ||||||
Health Care | 7.0 | ||||||
Energy | 5.9 | ||||||
Materials | 5.4 | ||||||
Consumer Staples | 2.9 | ||||||
Utilities | 1.7 | ||||||
Telecommunication Services | 1.4 | ||||||
Money Market Fund | 0.0 | ||||||
Other | 0.0 |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Small-Cap Value | 50.0 | ||||||
Small-Cap Growth | 38.6 | ||||||
Mid-Cap Growth | 9.2 | ||||||
Mid-Cap Value | 1.9 | ||||||
Large-Cap Growth | 0.2 | ||||||
Large-Cap Value | 0.1 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
NCI Building Systems, Inc. | 0.7 | ||||||
FelCor Lodging Trust, Inc. | 0.3 | ||||||
Strategic Hotels & Resorts, Inc. | 0.3 | ||||||
NACCO Industries, Inc. | 0.3 | ||||||
Citizens Republic Bancorp, Inc. | 0.2 | ||||||
PMI Group, Inc. (The) | 0.2 | ||||||
Ashford Hospitality Trust, Inc. | 0.2 | ||||||
USEC, Inc. | 0.2 | ||||||
Kilroy Realty Corp. | 0.2 | ||||||
PolyOne Corp. | 0.2 | ||||||
Total | 2.8 |
12
Manager's Analysis (Continued)
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (ticker: PRFZ)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2010 | ||||||||||||||||||
Avg. Ann.†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg. Ann.†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
FTSE RAFI U.S. 1500 Small-Mid Index | 72.14 | % | 2.57 | % | 5.97 | % | 23.27 | % | |||||||||||
S&P Small Cap 600® Index | 47.79 | % | -2.03 | % | 1.90 | % | 6.98 | % | |||||||||||
Russell 2000® Index | 48.95 | % | -2.79 | % | 1.05 | % | 3.81 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 72.38 | % | 2.47 | % | 5.67 | % | 22.02 | % | |||||||||||
Share Price Return | 72.59 | % | 2.47 | % | 5.66 | % | 21.97 | % |
Fund Inception: September 20, 2006
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.66%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.39% while the Fund's total gross operating expense ratio was 0.51%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P Small Cap 600® Index and Russell 2000® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 600 and 2,000 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
13
Manager's Analysis
PowerShares NXQ Portfolio (ticker: PNXQ)
The PowerShares NXQ Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the NASDAQ Q-50 IndexSM (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 56.81%. Over this same year, the Index returned 55.06%, while the NASDAQ-100® Index returned 44.44%. The Fund benefited from positive performance in information technology, consumer discretionary and health care sectors. Fund performance was positive within each sector for the reporting period. The Fund outperformed the Index due to positive trading slippage during the June rebalance.
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Information Technology | 36.0 | ||||||
Health Care | 20.0 | ||||||
Consumer Discretionary | 19.9 | ||||||
Industrials | 7.5 | ||||||
Consumer Staples | 6.4 | ||||||
Telecommunication Services | 4.3 | ||||||
Materials | 4.1 | ||||||
Energy | 1.9 | ||||||
Other | (0.1 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Mid-Cap Growth | 79.9 | ||||||
Large-Cap Growth | 11.2 | ||||||
Mid-Cap Value | 8.9 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
Micron Technology, Inc. | 3.7 | ||||||
Cree, Inc. | 3.6 | ||||||
Dendreon Corp. | 3.4 | ||||||
Whole Foods Market, Inc. | 3.1 | ||||||
Akamai Technologies, Inc. | 3.1 | ||||||
Perrigo Co. | 2.6 | ||||||
F5 Networks, Inc. | 2.6 | ||||||
Dollar Tree, Inc. | 2.5 | ||||||
Randgold Resources Ltd. | 2.5 | ||||||
Netflix, Inc. | 2.5 | ||||||
Total | 29.6 |
14
Manager's Analysis (Continued)
PowerShares NXQ Portfolio (ticker: PNXQ)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2010 | ||||||||||||||
Avg. Ann.†† | Fund Inception† | ||||||||||||||
1 Year | Avg. Ann.†† | Cumulative | |||||||||||||
Index | |||||||||||||||
NASDAQ Q-50 IndexSM | 55.06 | % | 2.98 | % | 6.28 | % | |||||||||
NASDAQ-100® Index | 44.44 | % | 6.38 | % | 13.75 | % | |||||||||
S&P 500® Index | 38.82 | % | -2.83 | % | -5.80 | % | |||||||||
Fund | |||||||||||||||
NAV Return | 56.81 | % | 2.73 | % | 5.74 | % | |||||||||
Share Price Return | 57.02 | % | 3.09 | % | 6.52 | % |
Fund Inception: April 3, 2008
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. According to the Fund's current prospectus, the expense ratio of 0.70% is expressed as a unitary fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The NASDAQ-100® Index and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 100 and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
15
Frequency Distribution of Discounts & Premiums
Since Inception through April 30, 2010
Closing Price Above NAV (bps) | |||||||||||||||||||||||||||||||||||||||
Ticker | Fund Name | Inception | Trading Days | 0-24 | 25-49 | 50-99 | 100-149 | 150-199 | 200+ | ||||||||||||||||||||||||||||||
PIQ | PowerShares Dynamic MagniQuant Portfolio | 10/12/06 | 893 | 329 | 21 | 1 | 1 | 0 | 0 | ||||||||||||||||||||||||||||||
PWC | PowerShares Dynamic Market Portfolio | 05/01/03 | 1649 | 790 | 71 | 12 | 2 | 0 | 0 | ||||||||||||||||||||||||||||||
PWO | PowerShares Dynamic OTC Portfolio | 05/01/03 | 1649 | 753 | 38 | 16 | 1 | 1 | 0 | ||||||||||||||||||||||||||||||
PRF | PowerShares FTSE RAFI US 1000 Portfolio | 12/19/05 | 1089 | 480 | 14 | 5 | 0 | 0 | 1 | ||||||||||||||||||||||||||||||
PRFZ | PowerShares FTSE RAFI US 1500 Small-Mid Portfolio | 09/20/06 | 909 | 366 | 22 | 3 | 0 | 2 | 1 | ||||||||||||||||||||||||||||||
PNXQ | PowerShares NXQ Portfolio | 04/03/08 | 524 | 159 | 4 | 0 | 0 | 0 | 0 |
16
Closing Price Below NAV (bps) | |||||||||||||||||||||||||||
Ticker | -0-24 | -25-49 | -50-99 | -100-149 | -150-199 | -200+ | |||||||||||||||||||||
PIQ | 528 | 10 | 3 | 0 | 0 | 0 | |||||||||||||||||||||
PWC | 760 | 10 | 4 | 0 | 0 | 0 | |||||||||||||||||||||
PWO | 818 | 18 | 4 | 0 | 0 | 0 | |||||||||||||||||||||
PRF | 555 | 24 | 8 | 2 | 0 | 0 | |||||||||||||||||||||
PRFZ | 480 | 33 | 2 | 0 | 0 | 0 | |||||||||||||||||||||
PNXQ | 353 | 7 | 1 | 0 | 0 | 0 |
17
Fees and Expenses
As a shareholder of a Fund of the PowerShares Exchange-Traded Fund Trust, you incur advisory fees and other Fund expenses. The expense examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds.
The example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended April 30, 2010.
Actual Expenses
The first line in the following table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading "Expenses Paid During the Six-Month Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line in the following table provides information about hypothetical account values and hypothetical expenses based on each Fund's actual expense ratio and an assumed annualized rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs such as sales charges and brokerage commissions. Therefore the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning Account Value November 1, 2009 | Ending Account Value April 30, 2010 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period(1) | ||||||||||||||||
PowerShares Dynamic MagniQuant Portfolio Actual | $ | 1,000.00 | $ | 1,211.16 | 0.65 | % | $ | 3.56 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.57 | 0.65 | % | $ | 3.26 | |||||||||||
PowerShares Dynamic Market Portfolio Actual | $ | 1,000.00 | $ | 1,158.66 | 0.60 | % | $ | 3.21 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.82 | 0.60 | % | $ | 3.01 | |||||||||||
PowerShares Dynamic OTC Portfolio Actual | $ | 1,000.00 | $ | 1,224.56 | 0.60 | % | $ | 3.31 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.82 | 0.60 | % | $ | 3.01 | |||||||||||
PowerShares FTSE RAFI US 1000 Portfolio Actual | $ | 1,000.00 | $ | 1,204.37 | 0.39 | % | $ | 2.13 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.86 | 0.39 | % | $ | 1.96 | |||||||||||
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio Actual | $ | 1,000.00 | $ | 1,325.01 | 0.39 | % | $ | 2.25 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.86 | 0.39 | % | $ | 1.96 | |||||||||||
PowerShares NXQ Portfolio Actual | $ | 1,000.00 | $ | 1,301.17 | 0.70 | % | $ | 3.99 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.32 | 0.70 | % | $ | 3.51 |
(1) Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six months ended April 30, 2010. Expenses are calculated by multiplying the Fund's annualized expense ratio by the average account value for the period; then multiplying the result by 181 and then dividing the result by 365. Expense ratios for the most recent half-year may differ from expense ratios based on the annualized data in the Financial Highlights.
18
Schedule of Investments
PowerShares Dynamic MagniQuant Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.0% | |||||||||||
Consumer Discretionary—30.7% | |||||||||||
6,383 | American Greetings Corp., Class A | $ | 156,767 | ||||||||
7,966 | Big 5 Sporting Goods Corp. | 135,024 | |||||||||
3,634 | Big Lots, Inc.* | 138,819 | |||||||||
3,185 | Children's Place Retail Stores, Inc. (The)* | 145,937 | |||||||||
3,341 | Coach, Inc. | 139,487 | |||||||||
5,387 | Collective Brands, Inc.* | 126,325 | |||||||||
6,940 | Cooper Tire & Rubber Co. | 147,267 | |||||||||
2,787 | Cracker Barrel Old Country Store, Inc. | 137,594 | |||||||||
4,897 | Dress Barn, Inc. (The)* | 135,549 | |||||||||
5,254 | Drew Industries, Inc.* | 134,765 | |||||||||
4,520 | DSW, Inc., Class A* | 136,504 | |||||||||
11,969 | Entercom Communications Corp., Class A* | 174,269 | |||||||||
8,035 | Gannett Co., Inc. | 136,756 | |||||||||
5,662 | Gap, Inc. (The) | 140,021 | |||||||||
2,985 | Guess?, Inc. | 136,922 | |||||||||
4,694 | Hanesbrands, Inc.* | 133,638 | |||||||||
5,036 | Helen of Troy Ltd.* | 136,022 | |||||||||
6,071 | Hillenbrand, Inc. | 149,225 | |||||||||
2,892 | J.Crew Group, Inc.* | 134,391 | |||||||||
3,797 | Jarden Corp. | 121,960 | |||||||||
3,216 | Jo-Ann Stores, Inc.* | 141,890 | |||||||||
2,900 | John Wiley & Sons, Inc., Class A | 122,583 | |||||||||
7,068 | Maidenform Brands, Inc.* | 161,292 | |||||||||
5,535 | Mattel, Inc. | 127,582 | |||||||||
25,254 | McClatchy Co. (The), Class A* | 137,634 | |||||||||
1,907 | McDonald's Corp. | 134,615 | |||||||||
3,560 | McGraw-Hill Cos., Inc. (The) | 120,043 | |||||||||
1,801 | NIKE, Inc., Class B | 136,714 | |||||||||
3,296 | Nordstrom, Inc. | 136,224 | |||||||||
4,472 | PetSmart, Inc. | 147,889 | |||||||||
2,797 | Phillips-Van Heusen Corp. | 176,239 | |||||||||
2,661 | Polaris Industries, Inc. | 157,451 | |||||||||
1,523 | Polo Ralph Lauren Corp. | 136,918 | |||||||||
8,627 | RC2 Corp.* | 158,478 | |||||||||
13,615 | Retail Ventures, Inc.* | 147,314 | |||||||||
4,140 | Scholastic Corp. | 111,821 | |||||||||
15,808 | Select Comfort Corp.* | 178,947 | |||||||||
15,103 | Service Corp. International | 135,625 | |||||||||
1,921 | Sherwin-Williams Co. (The) | 149,972 | |||||||||
3,961 | Skechers U.S.A., Inc., Class A* | 151,904 | |||||||||
5,314 | Starbucks Corp. | 138,058 | |||||||||
14,899 | Stein Mart, Inc.* | 141,243 | |||||||||
4,286 | Tempur-Pedic International, Inc.* | 144,438 | |||||||||
3,587 | Thor Industries, Inc. | 128,092 | |||||||||
2,742 | Tiffany & Co. | 132,932 | |||||||||
6,584 | Timberland Co. (The), Class A* | 141,556 | |||||||||
2,924 | TJX Cos., Inc. (The) | 135,498 | |||||||||
4,530 | TRW Automotive Holdings Corp.* | 145,911 | |||||||||
2,604 | Tupperware Brands Corp. | 132,986 | |||||||||
2,315 | UniFirst Corp. | 113,134 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
3,779 | Urban Outfitters, Inc.* | $ | 141,750 | ||||||||
1,573 | VF Corp. | 135,939 | |||||||||
4,106 | Viacom, Inc., Class B* | 145,065 | |||||||||
3,897 | Walt Disney Co. (The) | 143,566 | |||||||||
2,916 | Warnaco Group, Inc. (The)* | 139,501 | |||||||||
1,447 | Whirlpool Corp. | 157,535 | |||||||||
4,415 | Wolverine World Wide, Inc. | 135,143 | |||||||||
5,294 | Wyndham Worldwide Corp. | 141,932 | |||||||||
3,610 | Yum! Brands, Inc. | 153,136 | |||||||||
8,315,792 | |||||||||||
Consumer Staples—8.0% | |||||||||||
2,325 | Brown-Forman Corp., Class B | 135,269 | |||||||||
1,468 | Colgate-Palmolive Co. | 123,459 | |||||||||
4,977 | ConAgra Foods, Inc. | 121,787 | |||||||||
15,103 | Darling International, Inc.* | 143,327 | |||||||||
3,834 | Dr Pepper Snapple Group, Inc. | 125,487 | |||||||||
6,755 | Elizabeth Arden, Inc.* | 123,009 | |||||||||
2,100 | Energizer Holdings, Inc.* | 128,310 | |||||||||
2,025 | Estee Lauder Cos., Inc. (The), Class A | 133,488 | |||||||||
1,691 | General Mills, Inc. | 120,365 | |||||||||
2,652 | H.J. Heinz Co. | 124,299 | |||||||||
8,963 | Inter Parfums, Inc. | 154,881 | |||||||||
2,004 | Kimberly-Clark Corp. | 122,765 | |||||||||
2,681 | NBTY, Inc.* | 109,063 | |||||||||
4,555 | Nu Skin Enterprises, Inc., Class A | 136,923 | |||||||||
1,924 | Procter & Gamble Co. (The) | 119,596 | |||||||||
2,251 | Wal-Mart Stores, Inc. | 120,766 | |||||||||
3,887 | WD-40 Co. | 136,939 | |||||||||
2,179,733 | |||||||||||
Energy—0.5% | |||||||||||
4,238 | Alliance Holdings GP LP | 136,548 | |||||||||
Financials—4.7% | |||||||||||
2,461 | Aflac, Inc. | 125,413 | |||||||||
3,187 | American Express Co. | 146,984 | |||||||||
4,705 | American Financial Group, Inc. | 138,468 | |||||||||
9,125 | Calamos Asset Management, Inc., Class A | 113,606 | |||||||||
3,176 | Cash America International, Inc. | 117,703 | |||||||||
3,005 | Commerce Bancshares, Inc. | 124,467 | |||||||||
6,170 | EZCORP, Inc., Class A* | 127,781 | |||||||||
7,098 | Progressive Corp. (The) | 142,599 | |||||||||
3,277 | Safety Insurance Group, Inc. | 122,199 | |||||||||
2,913 | World Acceptance Corp.* | 102,771 | |||||||||
1,261,991 | |||||||||||
Health Care—9.1% | |||||||||||
2,083 | Allergan, Inc. | 132,666 | |||||||||
4,341 | AmerisourceBergen Corp. | 133,920 | |||||||||
5,891 | AmSurg Corp., Class A* | 122,061 | |||||||||
4,966 | Bristol-Myers Squibb Co. | 125,590 | |||||||||
9,738 | Bruker Corp.* | 148,894 | |||||||||
6,226 | Cantel Medical Corp. | 124,271 |
See Notes to Financial Statements.
19
Schedule of Investments (Continued)
PowerShares Dynamic MagniQuant Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
3,584 | Cardinal Health, Inc. | $ | 124,329 | ||||||||
1,976 | DaVita, Inc.* | 123,362 | |||||||||
18,814 | Exelixis, Inc.* | 108,745 | |||||||||
6,612 | Healthspring, Inc.* | 116,371 | |||||||||
2,326 | Hospira, Inc.* | 125,116 | |||||||||
4,462 | Invacare Corp. | 117,931 | |||||||||
1,932 | Johnson & Johnson | 124,228 | |||||||||
2,058 | McKesson Corp. | 133,379 | |||||||||
2,275 | MEDNAX, Inc.* | 124,988 | |||||||||
1,225 | Mettler-Toledo International, Inc.* | 153,713 | |||||||||
3,392 | Sirona Dental Systems, Inc.* | 141,412 | |||||||||
2,292 | Stryker Corp. | 131,652 | |||||||||
2,040 | Waters Corp.* | 146,860 | |||||||||
2,459,488 | |||||||||||
Industrials—14.6% | |||||||||||
1,519 | 3M Co. | 134,690 | |||||||||
2,687 | A.O. Smith Corp. | 138,730 | |||||||||
2,321 | Amerco, Inc.* | 144,946 | |||||||||
5,432 | ATC Technology Corp.* | 111,030 | |||||||||
10,386 | Comfort Systems USA, Inc. | 146,235 | |||||||||
3,844 | Crane Co. | 138,153 | |||||||||
2,144 | Cummins, Inc. | 154,861 | |||||||||
6,781 | Deluxe Corp. | 142,198 | |||||||||
4,052 | Dollar Thrifty Automotive Group, Inc.* | 178,247 | |||||||||
2,950 | Donaldson Co., Inc. | 136,585 | |||||||||
1,787 | Eaton Corp. | 137,885 | |||||||||
5,288 | EMCOR Group, Inc.* | 151,025 | |||||||||
15,646 | Hawaiian Holdings, Inc.* | 111,087 | |||||||||
3,031 | Honeywell International, Inc. | 143,882 | |||||||||
2,598 | Hubbell, Inc., Class B | 120,729 | |||||||||
3,926 | IDEX Corp. | 131,914 | |||||||||
2,675 | Illinois Tool Works, Inc. | 136,693 | |||||||||
2,376 | ITT Corp. | 132,034 | |||||||||
2,396 | Joy Global, Inc. | 136,117 | |||||||||
1,332 | L-3 Communications Holdings, Inc. | 124,635 | |||||||||
3,758 | M&F Worldwide Corp.* | 115,220 | |||||||||
5,327 | McDermott International, Inc.* | 146,013 | |||||||||
3,193 | Oshkosh Corp.* | 123,314 | |||||||||
3,083 | Pall Corp. | 120,206 | |||||||||
2,018 | Parker Hannifin Corp. | 139,605 | |||||||||
2,163 | Rockwell Collins, Inc. | 140,595 | |||||||||
2,073 | United Parcel Service, Inc., Class B | 143,327 | |||||||||
2,131 | United Stationers, Inc.* | 130,460 | |||||||||
1,773 | United Technologies Corp. | 132,886 | |||||||||
3,943,302 | |||||||||||
Information Technology—21.0% | |||||||||||
4,982 | Altera Corp. | 126,344 | |||||||||
2,922 | Amphenol Corp., Class A | 135,026 | |||||||||
595 | Apple, Inc.* | 155,366 | |||||||||
4,409 | Avnet, Inc.* | 140,956 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
9,897 | AVX Corp. | $ | 152,909 | ||||||||
3,304 | BMC Software, Inc.* | 130,045 | |||||||||
17,072 | Brightpoint, Inc.* | 138,112 | |||||||||
5,411 | CA, Inc. | 123,425 | |||||||||
5,003 | Cisco Systems, Inc.* | 134,681 | |||||||||
2,350 | Computer Sciences Corp.* | 123,116 | |||||||||
6,904 | Corning, Inc. | 132,902 | |||||||||
6,050 | CSG Systems International, Inc.* | 137,456 | |||||||||
6,960 | EMC Corp.* | 132,310 | |||||||||
2,181 | F5 Networks, Inc.* | 149,246 | |||||||||
2,524 | Fiserv, Inc.* | 128,951 | |||||||||
16,252 | Global Cash Access Holdings, Inc.* | 141,067 | |||||||||
2,692 | Harris Corp. | 138,584 | |||||||||
3,204 | Hewitt Associates, Inc., Class A* | 131,332 | |||||||||
2,397 | Hewlett-Packard Co. | 124,572 | |||||||||
5,929 | Intel Corp. | 135,359 | |||||||||
957 | International Business Machines Corp. | 123,453 | |||||||||
8,025 | Jabil Circuit, Inc. | 122,943 | |||||||||
5,391 | Jack Henry & Associates, Inc. | 137,578 | |||||||||
18,499 | Kulicke & Soffa Industries, Inc.* | 151,692 | |||||||||
3,188 | Lender Processing Services, Inc. | 120,347 | |||||||||
3,610 | Lexmark International, Inc., Class A* | 133,750 | |||||||||
3,420 | Littelfuse, Inc.* | 144,427 | |||||||||
13,435 | Micron Technology, Inc.* | 125,617 | |||||||||
4,247 | Microsoft Corp. | 129,703 | |||||||||
1,373 | MicroStrategy, Inc., Class A* | 105,172 | |||||||||
12,296 | ModusLink Global Solutions, Inc.* | 109,803 | |||||||||
6,688 | QLogic Corp.* | 129,547 | |||||||||
28,914 | RF Micro Devices, Inc.* | 162,497 | |||||||||
4,179 | SanDisk Corp.* | 166,700 | |||||||||
7,359 | Sanmina-SCI Corp.* | 131,211 | |||||||||
4,250 | SYNNEX Corp.* | 116,535 | |||||||||
2,842 | Tech Data Corp.* | 121,922 | |||||||||
6,960 | TeleTech Holdings, Inc.* | 115,188 | |||||||||
3,993 | Teradata Corp.* | 116,077 | |||||||||
4,993 | Texas Instruments, Inc. | 129,868 | |||||||||
6,307 | VeriFone Holdings, Inc.* | 120,022 | |||||||||
4,884 | VeriSign, Inc.* | 133,187 | |||||||||
3,151 | Western Digital Corp.* | 129,475 | |||||||||
5,688,473 | |||||||||||
Materials—10.3% | |||||||||||
3,247 | Albemarle Corp. | 148,258 | |||||||||
2,585 | Ashland, Inc. | 153,963 | |||||||||
4,188 | Cabot Corp. | 136,277 | |||||||||
3,902 | Celanese Corp., Series A | 124,825 | |||||||||
2,522 | Clearwater Paper Corp.* | 160,601 | |||||||||
2,044 | Eastman Chemical Co. | 136,784 | |||||||||
1,619 | Freeport-McMoRan Copper & Gold, Inc. | 122,283 | |||||||||
34,979 | Graphic Packaging Holding Co.* | 129,072 | |||||||||
5,799 | H.B. Fuller Co. | 135,987 |
See Notes to Financial Statements.
20
Schedule of Investments (Continued)
PowerShares Dynamic MagniQuant Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
2,891 | International Flavors & Fragrances, Inc. | $ | 144,810 | ||||||||
5,254 | International Paper Co. | 140,492 | |||||||||
13,289 | KapStone Paper and Packaging Corp.* | 171,428 | |||||||||
1,367 | NewMarket Corp. | 150,370 | |||||||||
15,312 | PolyOne Corp.* | 173,179 | |||||||||
1,978 | PPG Industries, Inc. | 139,192 | |||||||||
5,958 | Sealed Air Corp. | 128,097 | |||||||||
2,553 | Sigma-Aldrich Corp. | 151,393 | |||||||||
4,203 | W.R. Grace & Co.* | 121,425 | |||||||||
1,549 | Walter Energy, Inc. | 125,175 | |||||||||
5,510 | Zep, Inc. | 101,604 | |||||||||
2,795,215 | |||||||||||
Telecommunication Services—0.6% | |||||||||||
2,774 | Atlantic Tele-Network, Inc. | 153,069 | |||||||||
Utilities—0.5% | |||||||||||
3,731 | Edison International | 128,235 | |||||||||
Total Common Stocks and Other Equity Interests (Cost $23,470,612) | 27,061,846 | ||||||||||
Money Market Fund—0.2% | |||||||||||
51,668 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $51,668) | 51,668 | |||||||||
Total Investments (Cost $23,522,280)—100.2% | 27,113,514 | ||||||||||
Liabilities in excess of other assets—(0.2%) | (40,393 | ) | |||||||||
Net Assets—100.0% | $ | 27,073,121 |
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
21
Schedule of Investments
PowerShares Dynamic Market Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—99.9% | |||||||||||
Consumer Discretionary—11.8% | |||||||||||
36,796 | American Greetings Corp., Class A | $ | 903,710 | ||||||||
45,923 | Big 5 Sporting Goods Corp. | 778,395 | |||||||||
112,334 | Coach, Inc. | 4,689,944 | |||||||||
40,006 | Cooper Tire & Rubber Co. | 848,927 | |||||||||
26,055 | DSW, Inc., Class A* | 786,861 | |||||||||
190,390 | Gap, Inc. (The) | 4,708,345 | |||||||||
17,202 | Guess?, Inc. | 789,056 | |||||||||
29,030 | Helen of Troy Ltd.* | 784,100 | |||||||||
18,537 | Jo-Ann Stores, Inc.* | 817,852 | |||||||||
186,147 | Mattel, Inc. | 4,290,688 | |||||||||
16,127 | Phillips-Van Heusen Corp. | 1,016,162 | |||||||||
51,926 | RCN Corp.* | 762,274 | |||||||||
23,870 | Scholastic Corp. | 644,729 | |||||||||
178,673 | Starbucks Corp. | 4,641,925 | |||||||||
13,352 | UniFirst Corp. | 652,512 | |||||||||
27,115,480 | |||||||||||
Consumer Staples—10.1% | |||||||||||
21,812 | Brown-Forman Corp., Class B | 1,269,022 | |||||||||
96,383 | Colgate-Palmolive Co. | 8,105,810 | |||||||||
46,686 | ConAgra Foods, Inc. | 1,142,406 | |||||||||
63,372 | Elizabeth Arden, Inc.* | 1,154,004 | |||||||||
18,989 | Estee Lauder Cos., Inc. (The), Class A | 1,251,755 | |||||||||
111,009 | General Mills, Inc. | 7,901,621 | |||||||||
84,091 | Inter Parfums, Inc. | 1,453,093 | |||||||||
25,151 | NBTY, Inc.* | 1,023,143 | |||||||||
23,300,854 | |||||||||||
Energy—10.9% | |||||||||||
30,715 | Alliance Holdings GP LP | 989,637 | |||||||||
30,696 | Dril-Quip, Inc.* | 1,778,219 | |||||||||
184,572 | Gulfport Energy Corp.* | 2,307,150 | |||||||||
180,309 | National Oilwell Varco, Inc. | 7,939,005 | |||||||||
98,161 | Occidental Petroleum Corp. | 8,702,954 | |||||||||
27,783 | Oceaneering International, Inc.* | 1,819,787 | |||||||||
98,511 | Stone Energy Corp.* | 1,605,730 | |||||||||
25,142,482 | |||||||||||
Financials—14.3% | |||||||||||
75,380 | Aflac, Inc. | 3,841,365 | |||||||||
97,605 | American Express Co. | 4,501,543 | |||||||||
30,875 | American Financial Group, Inc. | 908,651 | |||||||||
59,878 | Calamos Asset Management, Inc., Class A | 745,481 | |||||||||
20,838 | Cash America International, Inc. | 772,256 | |||||||||
19,717 | Commerce Bancshares, Inc. | 816,678 | |||||||||
20,159 | Erie Indemnity Co., Class A | 933,563 | |||||||||
40,485 | EZCORP, Inc., Class A* | 838,444 | |||||||||
36,647 | Franklin Resources, Inc. | 4,237,859 | |||||||||
18,358 | GAMCO Investors, Inc., Class A | 844,652 | |||||||||
217,350 | Progressive Corp. (The) | 4,366,562 | |||||||||
16,808 | Reinsurance Group of America, Inc. | 867,797 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
21,504 | Safety Insurance Group, Inc. | $ | 801,884 | ||||||||
73,536 | T. Rowe Price Group, Inc. | 4,229,056 | |||||||||
70,877 | Travelers Cos., Inc. (The) | 3,596,299 | |||||||||
19,111 | World Acceptance Corp.* | 674,236 | |||||||||
32,976,326 | |||||||||||
Health Care—12.1% | |||||||||||
34,809 | AmSurg Corp., Class A* | 721,242 | |||||||||
57,526 | Bruker Corp.* | 879,572 | |||||||||
36,780 | Cantel Medical Corp. | 734,129 | |||||||||
135,838 | Cardinal Health, Inc. | 4,712,220 | |||||||||
74,895 | DaVita, Inc.* | 4,675,695 | |||||||||
111,145 | Exelixis, Inc.* | 642,418 | |||||||||
98,646 | Health Management Associates, Inc., Class A* | 919,381 | |||||||||
39,059 | Healthspring, Inc.* | 687,438 | |||||||||
88,180 | Hospira, Inc.* | 4,743,202 | |||||||||
26,362 | Invacare Corp. | 696,748 | |||||||||
17,907 | Lincare Holdings, Inc.* | 836,078 | |||||||||
78,012 | McKesson Corp. | 5,055,958 | |||||||||
13,441 | MEDNAX, Inc.* | 738,449 | |||||||||
7,236 | Mettler-Toledo International, Inc.* | 907,973 | |||||||||
20,036 | Sirona Dental Systems, Inc.* | 835,301 | |||||||||
27,785,804 | |||||||||||
Industrials—11.4% | |||||||||||
66,552 | 3M Co. | 5,901,166 | |||||||||
18,925 | A.O. Smith Corp. | 977,098 | |||||||||
15,232 | Amerco, Inc.* | 951,238 | |||||||||
38,252 | ATC Technology Corp.* | 781,871 | |||||||||
47,761 | Deluxe Corp. | 1,001,548 | |||||||||
26,592 | Dollar Thrifty Automotive Group, Inc.* | 1,169,782 | |||||||||
18,302 | Hubbell, Inc., Class B | 850,494 | |||||||||
27,652 | IDEX Corp. | 929,107 | |||||||||
26,469 | M&F Worldwide Corp.* | 811,540 | |||||||||
22,491 | Oshkosh Corp.* | 868,602 | |||||||||
135,151 | Pall Corp. | 5,269,538 | |||||||||
15,009 | United Stationers, Inc.* | 918,851 | |||||||||
77,700 | United Technologies Corp. | 5,823,615 | |||||||||
26,254,450 | |||||||||||
Information Technology—18.3% | |||||||||||
39,107 | Avnet, Inc.* | 1,250,251 | |||||||||
87,782 | AVX Corp. | 1,356,232 | |||||||||
151,437 | Brightpoint, Inc.* | 1,225,125 | |||||||||
53,663 | CSG Systems International, Inc.* | 1,219,223 | |||||||||
109,129 | Hewlett-Packard Co. | 5,671,434 | |||||||||
269,976 | Intel Corp. | 6,163,552 | |||||||||
43,589 | International Business Machines Corp. | 5,622,981 | |||||||||
71,177 | Jabil Circuit, Inc. | 1,090,432 | |||||||||
193,393 | Microsoft Corp. | 5,906,222 | |||||||||
59,327 | QLogic Corp.* | 1,149,164 |
See Notes to Financial Statements.
22
Schedule of Investments (Continued)
PowerShares Dynamic Market Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
256,467 | RF Micro Devices, Inc.* | $ | 1,441,345 | ||||||||
37,698 | SYNNEX Corp.* | 1,033,679 | |||||||||
25,204 | Tech Data Corp.* | 1,081,252 | |||||||||
61,738 | TeleTech Holdings, Inc.* | 1,021,764 | |||||||||
227,343 | Texas Instruments, Inc. | 5,913,191 | |||||||||
55,943 | VeriFone Holdings, Inc.* | 1,064,595 | |||||||||
42,210,442 | |||||||||||
Materials—4.1% | |||||||||||
20,945 | International Flavors & Fragrances, Inc. | 1,049,135 | |||||||||
266,484 | International Paper Co. | 7,125,782 | |||||||||
110,951 | PolyOne Corp.* | 1,254,856 | |||||||||
9,429,773 | |||||||||||
Telecommunication Services—2.3% | |||||||||||
9,327 | AboveNet, Inc.* | 471,386 | |||||||||
80,430 | AT&T, Inc. | 2,096,006 | |||||||||
12,993 | Atlantic Tele-Network, Inc. | 716,954 | |||||||||
58,225 | CenturyTel, Inc. | 1,986,055 | |||||||||
5,270,401 | |||||||||||
Utilities—4.6% | |||||||||||
56,198 | DPL, Inc. | 1,583,660 | |||||||||
213,314 | Edison International | 7,331,602 | |||||||||
45,487 | Laclede Group, Inc. (The) | 1,550,197 | |||||||||
10,465,459 | |||||||||||
Total Common Stocks and Other Equity Interests (Cost $212,740,957) | 229,951,471 | ||||||||||
Money Market Fund—0.1% | |||||||||||
231,098 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $231,098) | 231,098 | |||||||||
Total Investments (Cost $212,972,055)—100.0% | 230,182,569 | ||||||||||
Liabilities in excess of other assets—(0.0%) | (31,908 | ) | |||||||||
Net Assets—100.0% | $ | 230,150,661 |
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
23
Schedule of Investments
PowerShares Dynamic OTC Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.0% | |||||||||||
Consumer Discretionary—14.5% | |||||||||||
12,570 | Big 5 Sporting Goods Corp. | $ | 213,062 | ||||||||
5,027 | Children's Place Retail Stores, Inc. (The)* | 230,337 | |||||||||
5,999 | Core-Mark Holding Co., Inc.* | 183,089 | |||||||||
7,726 | Dress Barn, Inc. (The)* | 213,856 | |||||||||
7,945 | Helen of Troy Ltd.* | 214,594 | |||||||||
40,763 | Mattel, Inc. | 939,587 | |||||||||
32,926 | PetSmart, Inc. | 1,088,863 | |||||||||
6,532 | Scholastic Corp. | 176,429 | |||||||||
24,947 | Select Comfort Corp.* | 282,400 | |||||||||
10,536 | Shoe Carnival, Inc.* | 291,426 | |||||||||
39,120 | Starbucks Corp. | 1,016,338 | |||||||||
27,827 | Urban Outfitters, Inc.* | 1,043,791 | |||||||||
5,893,772 | |||||||||||
Consumer Staples—2.0% | |||||||||||
8,772 | Costco Wholesale Corp. | 518,250 | |||||||||
16,882 | Inter Parfums, Inc. | 291,721 | |||||||||
809,971 | |||||||||||
Energy—0.9% | |||||||||||
3,137 | Alliance Holdings GP LP | 101,074 | |||||||||
5,228 | Atlas Energy, Inc.* | 188,626 | |||||||||
1,698 | OYO Geospace Corp.* | 84,391 | |||||||||
374,091 | |||||||||||
Financials—7.8% | |||||||||||
6,724 | Calamos Asset Management, Inc., Class A | 83,714 | |||||||||
12,918 | Commerce Bancshares, Inc. | 535,063 | |||||||||
13,027 | Credit Acceptance Corp.* | 587,518 | |||||||||
7,386 | Dime Community Bancshares | 94,171 | |||||||||
13,208 | Erie Indemnity Co., Class A | 611,662 | |||||||||
4,542 | EZCORP, Inc., Class A* | 94,065 | |||||||||
4,226 | First Cash Financial Services, Inc.* | 93,225 | |||||||||
3,649 | FPIC Insurance Group, Inc.* | 99,326 | |||||||||
4,357 | Life Partners Holdings, Inc. | 100,647 | |||||||||
6,000 | MarketAxess Holdings, Inc. | 94,320 | |||||||||
2,416 | Safety Insurance Group, Inc. | 90,093 | |||||||||
10,323 | T. Rowe Price Group, Inc. | 593,676 | |||||||||
2,147 | World Acceptance Corp.* | 75,746 | |||||||||
3,153,226 | |||||||||||
Health Care—14.5% | |||||||||||
8,369 | AmSurg Corp., Class A* | 173,406 | |||||||||
72,655 | Bruker Corp.* | 1,110,895 | |||||||||
5,373 | CorVel Corp.* | 178,921 | |||||||||
26,732 | Exelixis, Inc.* | 154,511 | |||||||||
4,347 | Integra LifeSciences Holdings Corp.* | 197,484 | |||||||||
2,617 | Intuitive Surgical, Inc.* | 943,585 | |||||||||
10,153 | Kendle International, Inc.* | 168,032 | |||||||||
22,615 | Lincare Holdings, Inc.* | 1,055,894 | |||||||||
4,127 | Magellan Health Services, Inc.* | 174,201 | |||||||||
16,910 | Obagi Medical Products, Inc.* | 227,947 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
9,870 | Odyssey HealthCare, Inc.* | $ | 205,592 | ||||||||
18,321 | Perrigo Co. | 1,118,131 | |||||||||
4,820 | Sirona Dental Systems, Inc.* | 200,946 | |||||||||
5,909,545 | |||||||||||
Industrials—5.4% | |||||||||||
1,711 | Amerco, Inc.* | 106,852 | |||||||||
8,350 | Apogee Enterprises, Inc. | 114,729 | |||||||||
5,325 | ATC Technology Corp.* | 108,843 | |||||||||
15,339 | Hawaiian Holdings, Inc.* | 108,907 | |||||||||
13,704 | Joy Global, Inc. | 778,524 | |||||||||
6,074 | Sterling Construction Co., Inc.* | 106,295 | |||||||||
5,007 | Sykes Enterprises, Inc.* | 113,809 | |||||||||
12,194 | United Stationers, Inc.* | 746,517 | |||||||||
2,184,476 | |||||||||||
Information Technology—53.1% | |||||||||||
10,166 | Acxiom Corp.* | 193,967 | |||||||||
46,401 | Altera Corp. | 1,176,729 | |||||||||
5,540 | Apple, Inc.* | 1,446,605 | |||||||||
27,244 | Automatic Data Processing, Inc. | 1,181,300 | |||||||||
7,361 | Blackbaud, Inc. | 169,671 | |||||||||
30,772 | BMC Software, Inc.* | 1,211,186 | |||||||||
24,046 | Brightpoint, Inc.* | 194,532 | |||||||||
50,379 | CA, Inc. | 1,149,145 | |||||||||
4,844 | Cabot Microelectronics Corp.* | 185,816 | |||||||||
46,588 | Cisco Systems, Inc.* | 1,254,149 | |||||||||
8,523 | CSG Systems International, Inc.* | 193,643 | |||||||||
5,475 | Cymer, Inc.* | 186,971 | |||||||||
8,508 | EchoStar Corp., Class A* | 163,439 | |||||||||
20,014 | Epicor Software Corp.* | 183,729 | |||||||||
20,317 | F5 Networks, Inc.* | 1,390,292 | |||||||||
23,505 | Fiserv, Inc.* | 1,200,871 | |||||||||
55,216 | Intel Corp. | 1,260,581 | |||||||||
8,704 | Interactive Intelligence, Inc.* | 172,078 | |||||||||
6,685 | InterDigital, Inc.* | 184,974 | |||||||||
7,593 | Jack Henry & Associates, Inc. | 193,773 | |||||||||
15,975 | JDS Uniphase Corp.* | 207,515 | |||||||||
26,055 | Kulicke & Soffa Industries, Inc.* | 213,651 | |||||||||
4,818 | Littelfuse, Inc.* | 203,464 | |||||||||
3,472 | ManTech International Corp., Class A* | 156,344 | |||||||||
39,549 | Microsoft Corp. | 1,207,826 | |||||||||
1,934 | MicroStrategy, Inc., Class A* | 148,144 | |||||||||
17,325 | ModusLink Global Solutions, Inc.* | 154,712 | |||||||||
18,031 | Monotype Imaging Holdings, Inc.* | 188,244 | |||||||||
7,860 | Multi-Fineline Electronix, Inc.* | 203,731 | |||||||||
5,423 | National Instruments Corp. | 187,527 | |||||||||
11,103 | Oplink Communications, Inc.* | 167,766 | |||||||||
9,848 | Parametric Technology Corp.* | 183,074 | |||||||||
20,654 | PMC - Sierra, Inc.* | 182,788 | |||||||||
4,769 | Power Integrations, Inc. | 183,511 | |||||||||
6,124 | Progress Software Corp.* | 197,499 |
See Notes to Financial Statements.
24
Schedule of Investments (Continued)
PowerShares Dynamic OTC Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
9,416 | QLogic Corp.* | $ | 182,388 | ||||||||
15,352 | Radiant Systems, Inc.* | 216,003 | |||||||||
40,728 | RF Micro Devices, Inc.* | 228,891 | |||||||||
38,914 | SanDisk Corp.* | 1,552,280 | |||||||||
10,365 | Sanmina-SCI Corp.* | 184,808 | |||||||||
26,792 | SMART Modular Technologies (WWH), Inc.* | 188,080 | |||||||||
11,425 | Super Micro Computer, Inc.* | 162,007 | |||||||||
4,003 | Tech Data Corp.* | 171,729 | |||||||||
9,799 | TeleTech Holdings, Inc.* | 162,173 | |||||||||
18,698 | TIBCO Software, Inc.* | 213,157 | |||||||||
45,486 | VeriSign, Inc.* | 1,240,403 | |||||||||
21,581,166 | |||||||||||
Materials—0.7% | |||||||||||
4,411 | Sigma-Aldrich Corp. | 261,572 | |||||||||
Telecommunication Services—1.1% | |||||||||||
2,693 | Atlantic Tele-Network, Inc. | 148,600 | |||||||||
7,374 | NII Holdings, Inc.* | 312,805 | |||||||||
461,405 | |||||||||||
Total Common Stocks and Other Equity Interests (Cost $34,792,040) | 40,629,224 | ||||||||||
Money Market Fund—0.1% | |||||||||||
62,213 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $62,213) | 62,213 | |||||||||
Total Investments (Cost $34,854,253)—100.1% | 40,691,437 | ||||||||||
Liabilities in excess of other assets—(0.1%) | (56,669 | ) | |||||||||
Net Assets—100.0% | $ | 40,634,768 |
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
25
Schedule of Investments
PowerShares FTSE RAFI US 1000 Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.0% | |||||||||||
Consumer Discretionary—11.6% | |||||||||||
4,854 | Aaron's, Inc. | $ | 109,555 | ||||||||
5,189 | Abercrombie & Fitch Co., Class A | 226,915 | |||||||||
3,695 | Advance Auto Parts, Inc. | 166,644 | |||||||||
3,828 | Amazon.com, Inc.* | 524,666 | |||||||||
9,329 | American Eagle Outfitters, Inc. | 156,820 | |||||||||
5,007 | AnnTaylor Stores Corp.* | 108,652 | |||||||||
3,279 | Apollo Group, Inc., Class A* | 188,247 | |||||||||
8,981 | ArvinMeritor, Inc.* | 137,589 | |||||||||
8,969 | Asbury Automotive Group, Inc.* | 139,468 | |||||||||
6,200 | Autoliv, Inc. | 339,450 | |||||||||
22,272 | AutoNation, Inc.* | 449,894 | |||||||||
1,153 | AutoZone, Inc.* | 213,317 | |||||||||
5,797 | Barnes & Noble, Inc. | 127,766 | |||||||||
19,983 | Beazer Homes USA, Inc.* | 131,288 | |||||||||
8,183 | Bed Bath & Beyond, Inc.* | 376,091 | |||||||||
26,911 | Best Buy Co., Inc. | 1,227,142 | |||||||||
4,403 | Big Lots, Inc.* | 168,195 | |||||||||
5,220 | BorgWarner, Inc. | 226,235 | |||||||||
12,451 | Boyd Gaming Corp.* | 158,128 | |||||||||
7,555 | Brinker International, Inc. | 139,919 | |||||||||
11,202 | Brunswick Corp. | 234,122 | |||||||||
6,068 | Burger King Holdings, Inc. | 128,035 | |||||||||
4,557 | Cabela's, Inc., Class A* | 82,755 | |||||||||
9,014 | Cablevision Systems Corp., Class A | 247,344 | |||||||||
3,703 | Career Education Corp.* | 108,387 | |||||||||
11,158 | CarMax, Inc.* | 274,152 | |||||||||
31,902 | Carnival Corp. | 1,330,313 | |||||||||
76,104 | CBS Corp., Class B | 1,233,646 | |||||||||
2,291 | Central European Media Enterprises Ltd., Class A (Bermuda)* | 77,894 | |||||||||
15,305 | Charming Shoppes, Inc.* | 86,473 | |||||||||
6,623 | Chico's FAS, Inc.* | 98,616 | |||||||||
27,551 | Clear Channel Outdoor Holdings, Inc., Class A* | 319,041 | |||||||||
5,375 | Coach, Inc. | 224,406 | |||||||||
4,702 | Collective Brands, Inc.* | 110,262 | |||||||||
184,001 | Comcast Corp., Class A | 3,587,653 | |||||||||
2,910 | Core-Mark Holding Co., Inc.* | 88,813 | |||||||||
30,922 | D.R. Horton, Inc. | 454,244 | |||||||||
7,175 | Dana Holding Corp.* | 95,858 | |||||||||
6,079 | Darden Restaurants, Inc. | 272,035 | |||||||||
3,888 | Dick's Sporting Goods, Inc.* | 113,180 | |||||||||
12,824 | Dillard's, Inc., Class A | 360,098 | |||||||||
23,609 | DIRECTV, Class A* | 855,354 | |||||||||
5,825 | Discovery Communications, Inc., Class A* | 225,428 | |||||||||
6,120 | Discovery Communications, Inc., Class C* | 204,224 | |||||||||
19,679 | DISH Network Corp., Class A | 435,890 | |||||||||
3,163 | Dollar Tree, Inc.* | 192,057 | |||||||||
6,816 | Domino's Pizza, Inc.* | 105,035 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
2,015 | DreamWorks Animation SKG, Inc., Class A* | $ | 79,975 | ||||||||
19,184 | E.W. Scripps Co., Class A* | 209,873 | |||||||||
50,817 | Eastman Kodak Co.* | 311,000 | |||||||||
1,063 | Education Management Corp.* | 23,205 | |||||||||
16,074 | Exide Technologies* | 95,480 | |||||||||
10,287 | Expedia, Inc. | 242,876 | |||||||||
6,857 | Family Dollar Stores, Inc. | 271,263 | |||||||||
2,445 | Federal Mogul Corp.* | 46,504 | |||||||||
16,237 | Foot Locker, Inc. | 249,238 | |||||||||
258,291 | Ford Motor Co.* | 3,362,949 | |||||||||
11,125 | Fortune Brands, Inc. | 583,173 | |||||||||
13,902 | GameStop Corp., Class A* | 337,958 | |||||||||
33,284 | Gannett Co., Inc. | 566,494 | |||||||||
22,960 | Gap, Inc. (The) | 567,801 | |||||||||
5,669 | Garmin Ltd. | 211,907 | |||||||||
10,616 | Genuine Parts Co. | 454,365 | |||||||||
45,598 | Goodyear Tire & Rubber Co. (The)* | 612,381 | |||||||||
4,593 | Group 1 Automotive, Inc.* | 142,613 | |||||||||
15,644 | H&R Block, Inc. | 286,442 | |||||||||
6,167 | Hanesbrands, Inc.* | 175,574 | |||||||||
15,642 | Harley-Davidson, Inc. | 529,169 | |||||||||
2,625 | Harman International Industries, Inc.* | 103,635 | |||||||||
5,594 | Hasbro, Inc. | 214,586 | |||||||||
101,080 | Home Depot, Inc. (The) | 3,563,070 | |||||||||
19,815 | Hovnanian Enterprises, Inc., Class A* | 140,885 | |||||||||
5,395 | Hyatt Hotels Corp., Class A* | 222,112 | |||||||||
1,301 | Interactive Data Corp. | 43,544 | |||||||||
14,902 | International Game Technology | 314,134 | |||||||||
34,322 | Interpublic Group of Cos., Inc. (The)* | 305,809 | |||||||||
24,005 | J.C. Penney Co., Inc. | 700,226 | |||||||||
4,668 | Jack in the Box, Inc.* | 109,791 | |||||||||
5,184 | Jarden Corp. | 166,510 | |||||||||
34,135 | Johnson Controls, Inc. | 1,146,595 | |||||||||
8,561 | Jones Apparel Group, Inc. | 186,287 | |||||||||
8,790 | KB Home | 162,879 | |||||||||
13,996 | Kohl's Corp.* | 769,640 | |||||||||
4,120 | Lamar Advertising Co., Class A* | 153,346 | |||||||||
6,316 | Las Vegas Sands Corp.* | 157,016 | |||||||||
11,318 | Leggett & Platt, Inc. | 277,631 | |||||||||
15,426 | Lennar Corp., Class A | 306,977 | |||||||||
10,629 | Liberty Global, Inc., Series C* | 287,833 | |||||||||
11,589 | Liberty Global, Inc., Class A* | 317,654 | |||||||||
33,221 | Liberty Media Corp. - Interactive, Class A* | 510,607 | |||||||||
22,788 | Limited Brands, Inc. | 610,718 | |||||||||
7,059 | Live Nation Entertainment, Inc.* | 110,756 | |||||||||
19,332 | Liz Claiborne, Inc.* | 168,962 | |||||||||
75,719 | Lowe's Cos., Inc. | 2,053,499 | |||||||||
44,170 | Macy's, Inc. | 1,024,744 | |||||||||
13,178 | Marriott International, Inc., Class A | 484,423 | |||||||||
15,471 | Mattel, Inc. | 356,607 |
See Notes to Financial Statements.
26
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1000 Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
30,312 | McDonald's Corp. | $ | 2,139,724 | ||||||||
13,535 | McGraw-Hill Cos., Inc. (The) | 456,400 | |||||||||
2,611 | MDC Holdings, Inc. | 100,001 | |||||||||
2,083 | Meredith Corp. | 74,842 | |||||||||
33,947 | MGM MIRAGE* | 539,418 | |||||||||
6,857 | Mohawk Industries, Inc.* | 437,065 | |||||||||
14,967 | New York Times Co. (The), Class A* | 148,473 | |||||||||
23,725 | Newell Rubbermaid, Inc. | 404,986 | |||||||||
80,416 | News Corp., Class A | 1,240,015 | |||||||||
26,513 | News Corp., Class B | 471,666 | |||||||||
10,076 | NIKE, Inc., Class B | 764,869 | |||||||||
8,619 | Nordstrom, Inc. | 356,223 | |||||||||
318 | NVR, Inc.* | 228,340 | |||||||||
59,514 | Office Depot, Inc.* | 408,266 | |||||||||
13,638 | OfficeMax, Inc.* | 259,122 | |||||||||
14,753 | Omnicom Group, Inc. | 629,363 | |||||||||
4,252 | O'Reilly Automotive, Inc.* | 207,880 | |||||||||
7,170 | Penn National Gaming, Inc.* | 221,983 | |||||||||
8,057 | Penske Automotive Group, Inc.* | 120,694 | |||||||||
5,410 | PetSmart, Inc. | 178,909 | |||||||||
1,935 | Phillips-Van Heusen Corp. | 121,924 | |||||||||
1,825 | Polaris Industries, Inc. | 107,985 | |||||||||
2,628 | Polo Ralph Lauren Corp. | 236,257 | |||||||||
22,894 | Pulte Group, Inc.* | 299,682 | |||||||||
32,456 | Quiksilver, Inc.* | 172,990 | |||||||||
7,881 | RadioShack Corp. | 169,836 | |||||||||
20,190 | Regal Entertainment Group, Class A | 344,845 | |||||||||
5,266 | Regis Corp. | 100,686 | |||||||||
10,698 | Rent-A-Center, Inc.* | 276,222 | |||||||||
3,573 | Ross Stores, Inc. | 200,088 | |||||||||
11,771 | Royal Caribbean Cruises Ltd.* | 421,873 | |||||||||
37,604 | Saks, Inc.* | 366,639 | |||||||||
1,572 | Scripps Networks Interactive, Inc., Class A | 71,274 | |||||||||
7,741 | Sears Holdings Corp.* | 936,274 | |||||||||
14,280 | Service Corp. International | 128,234 | |||||||||
4,954 | Sherwin-Williams Co. (The) | 386,759 | |||||||||
4,835 | Signet Jewelers Ltd. (United Kingdom) | 154,817 | |||||||||
14,533 | Sonic Automotive, Inc., Class A* | 155,212 | |||||||||
8,276 | Stanley Black & Decker, Inc. | 514,353 | |||||||||
26,024 | Staples, Inc. | 612,345 | |||||||||
18,629 | Starbucks Corp. | 483,981 | |||||||||
8,111 | Starwood Hotels & Resorts Worldwide, Inc. | 442,131 | |||||||||
38,253 | Target Corp. | 2,175,448 | |||||||||
7,430 | Tenneco, Inc.* | 191,471 | |||||||||
2,208 | Thor Industries, Inc. | 78,848 | |||||||||
3,646 | Tiffany & Co. | 176,758 | |||||||||
50,172 | Time Warner Cable, Inc. | 2,822,175 | |||||||||
127,841 | Time Warner, Inc. | 4,228,980 | |||||||||
12,965 | TJX Cos., Inc. (The) | 600,798 | |||||||||
8,651 | Toll Brothers, Inc.* | 195,253 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
1,894 | Tractor Supply Co.* | $ | 127,220 | ||||||||
12,458 | TRW Automotive Holdings Corp.* | 401,272 | |||||||||
2,115 | Tupperware Brands Corp. | 108,013 | |||||||||
2,160 | Urban Outfitters, Inc.* | 81,022 | |||||||||
5,611 | VF Corp. | 484,903 | |||||||||
30,408 | Viacom, Inc., Class B* | 1,074,315 | |||||||||
25,466 | Virgin Media, Inc. | 447,947 | |||||||||
76,376 | Walt Disney Co. (The) | 2,813,692 | |||||||||
9,737 | Warner Music Group Corp.* | 66,698 | |||||||||
174 | Washington Post Co. (The), Class B | 88,246 | |||||||||
21,905 | Wendy's/Arby's Group, Inc., Class A | 116,316 | |||||||||
6,659 | Whirlpool Corp. | 724,965 | |||||||||
6,359 | Williams-Sonoma, Inc. | 183,139 | |||||||||
8,417 | Wyndham Worldwide Corp. | 225,660 | |||||||||
1,457 | Wynn Resorts Ltd.* | 128,566 | |||||||||
15,048 | Yum! Brands, Inc.* | 638,336 | |||||||||
75,464,699 | |||||||||||
Consumer Staples—9.5% | |||||||||||
11,334 | Alberto-Culver Co. | 326,419 | |||||||||
261,063 | Altria Group, Inc. | 5,531,925 | |||||||||
52,186 | Archer-Daniels-Midland Co. | 1,458,077 | |||||||||
15,903 | Avon Products, Inc. | 514,144 | |||||||||
6,759 | BJ's Wholesale Club, Inc.* | 258,734 | |||||||||
4,221 | Brown-Forman Corp., Class B | 245,578 | |||||||||
16,187 | Bunge Ltd. | 857,102 | |||||||||
10,073 | Campbell Soup Co. | 361,218 | |||||||||
3,341 | Casey's General Stores, Inc. | 129,063 | |||||||||
5,943 | Chiquita Brands International, Inc.* | 89,383 | |||||||||
1,765 | Church & Dwight Co., Inc. | 122,226 | |||||||||
5,148 | Clorox Co. (The) | 333,076 | |||||||||
79,089 | Coca-Cola Co. (The) | 4,227,307 | |||||||||
18,279 | Coca-Cola Enterprises, Inc. | 506,877 | |||||||||
11,931 | Colgate-Palmolive Co. | 1,003,397 | |||||||||
27,279 | ConAgra Foods, Inc. | 667,517 | |||||||||
15,999 | Constellation Brands, Inc., Class A* | 292,302 | |||||||||
4,487 | Corn Products International, Inc. | 161,532 | |||||||||
26,038 | Costco Wholesale Corp. | 1,538,325 | |||||||||
76,360 | CVS Caremark Corp. | 2,819,975 | |||||||||
34,936 | Dean Foods Co.* | 548,495 | |||||||||
12,008 | Del Monte Foods Co. | 179,399 | |||||||||
7,880 | Dole Food Co., Inc.* | 89,202 | |||||||||
7,399 | Dr Pepper Snapple Group, Inc.* | 242,169 | |||||||||
3,605 | Energizer Holdings, Inc.* | 220,265 | |||||||||
4,817 | Estee Lauder Cos., Inc. (The), Class A | 317,537 | |||||||||
3,705 | Flowers Foods, Inc. | 97,664 | |||||||||
4,649 | Fresh Del Monte Produce, Inc.* | 97,025 | |||||||||
11,822 | General Mills, Inc. | 841,490 | |||||||||
12,811 | Great Atlantic & Pacific Tea Co., Inc. (The)* | 103,128 | |||||||||
12,772 | H.J. Heinz Co. | 598,624 |
See Notes to Financial Statements.
27
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1000 Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
8,329 | Hershey Co. (The) | $ | 391,546 | ||||||||
4,629 | Hormel Foods Corp. | 188,678 | |||||||||
4,684 | J.M. Smucker Co. (The) | 286,052 | |||||||||
10,361 | Kellogg Co. | 569,233 | |||||||||
19,416 | Kimberly-Clark Corp. | 1,189,424 | |||||||||
89,142 | Kraft Foods, Inc., Class A | 2,638,603 | |||||||||
68,634 | Kroger Co. (The) | 1,525,734 | |||||||||
7,456 | Lorillard, Inc. | 584,327 | |||||||||
4,947 | McCormick & Co., Inc. | 195,753 | |||||||||
10,117 | Molson Coors Brewing Co., Class B | 448,790 | |||||||||
2,644 | Nash Finch Co. | 92,593 | |||||||||
2,523 | NBTY, Inc.* | 102,636 | |||||||||
9,389 | Pantry, Inc. (The)* | 148,534 | |||||||||
49,366 | PepsiCo, Inc. | 3,219,650 | |||||||||
43,540 | Philip Morris International, Inc. | 2,136,943 | |||||||||
102,576 | Procter & Gamble Co. (The) | 6,376,124 | |||||||||
2,663 | Ralcorp Holdings, Inc.* | 177,223 | |||||||||
14,514 | Reynolds American, Inc. | 775,338 | |||||||||
220,060 | Rite Aid Corp.* | 325,689 | |||||||||
2,804 | Ruddick Corp. | 99,093 | |||||||||
42,412 | Safeway, Inc. | 1,000,923 | |||||||||
47,686 | Sara Lee Corp. | 678,095 | |||||||||
21,894 | Smithfield Foods, Inc.* | 410,293 | |||||||||
52,270 | SUPERVALU, Inc. | 778,823 | |||||||||
37,064 | Sysco Corp. | 1,168,998 | |||||||||
36,641 | Tyson Foods, Inc., Class A | 717,797 | |||||||||
3,045 | United Natural Foods, Inc.* | 93,451 | |||||||||
1,983 | Universal Corp. | 102,680 | |||||||||
48,313 | Walgreen Co. | 1,698,202 | |||||||||
151,514 | Wal-Mart Stores, Inc. | 8,128,726 | |||||||||
985 | Weis Markets, Inc. | 36,721 | |||||||||
7,247 | Whole Foods Market, Inc.* | 282,778 | |||||||||
8,837 | Winn-Dixie Stores, Inc.* | 111,435 | |||||||||
61,460,060 | |||||||||||
Energy—11.7% | |||||||||||
4,417 | Alon USA Energy, Inc. | 32,288 | |||||||||
3,710 | Alpha Natural Resources, Inc.* | 174,667 | |||||||||
16,610 | Anadarko Petroleum Corp. | 1,032,478 | |||||||||
9,805 | Apache Corp. | 997,757 | |||||||||
7,060 | Arch Coal, Inc. | 190,620 | |||||||||
18,318 | Baker Hughes, Inc. | 911,504 | |||||||||
2,340 | Cabot Oil & Gas Corp. | 84,544 | |||||||||
7,561 | Cameron International Corp.* | 298,357 | |||||||||
32,215 | Chesapeake Energy Corp. | 766,717 | |||||||||
146,149 | Chevron Corp. | 11,902,375 | |||||||||
2,334 | Cimarex Energy Co. | 158,899 | |||||||||
771 | CNX Gas Corp.* | 29,506 | |||||||||
4,678 | Complete Production Services, Inc.* | 70,591 | |||||||||
160,353 | ConocoPhillips | 9,491,294 | |||||||||
4,111 | CONSOL Energy, Inc. | 183,679 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
8,630 | Crosstex Energy, Inc.* | $ | 77,929 | ||||||||
8,959 | Denbury Resources, Inc.* | 171,565 | |||||||||
17,642 | Devon Energy Corp. | 1,187,836 | |||||||||
3,521 | Diamond Offshore Drilling, Inc. | 278,511 | |||||||||
2,675 | Dresser-Rand Group, Inc.* | 94,374 | |||||||||
40,019 | El Paso Corp. | 484,230 | |||||||||
5,939 | EOG Resources, Inc. | 665,881 | |||||||||
3,705 | EXCO Resources, Inc. | 68,728 | |||||||||
5,440 | Exterran Holdings, Inc.* | 158,576 | |||||||||
278,769 | Exxon Mobil Corp. | 18,914,477 | |||||||||
2,450 | FMC Technologies, Inc.* | 165,840 | |||||||||
5,289 | Forest Oil Corp.* | 154,968 | |||||||||
9,215 | Frontier Oil Corp. | 140,068 | |||||||||
16,042 | General Maritime Corp. | 130,101 | |||||||||
32,109 | Halliburton Co. | 984,141 | |||||||||
12,459 | Helix Energy Solutions Group, Inc.* | 181,652 | |||||||||
4,174 | Helmerich & Payne, Inc. | 169,548 | |||||||||
22,185 | Hess Corp. | 1,409,857 | |||||||||
3,376 | Holly Corp. | 91,152 | |||||||||
8,060 | Key Energy Services, Inc.* | 87,532 | |||||||||
4,889 | Linn Energy LLC | 132,492 | |||||||||
79,185 | Marathon Oil Corp. | 2,545,798 | |||||||||
5,708 | Mariner Energy, Inc.* | 136,307 | |||||||||
2,788 | Massey Energy Co. | 102,124 | |||||||||
12,219 | Murphy Oil Corp. | 734,973 | |||||||||
22,020 | Nabors Industries Ltd. (Bermuda)* | 474,971 | |||||||||
20,769 | National Oilwell Varco, Inc. | 914,459 | |||||||||
4,876 | Newfield Exploration Co.* | 283,734 | |||||||||
8,814 | Noble Corp. (Switzerland) | 348,065 | |||||||||
4,761 | Noble Energy, Inc. | 363,740 | |||||||||
25,843 | Occidental Petroleum Corp. | 2,291,240 | |||||||||
1,535 | Oceaneering International, Inc.* | 100,543 | |||||||||
2,761 | Oil States International, Inc.* | 133,384 | |||||||||
2,992 | Overseas Shipholding Group, Inc. | 149,780 | |||||||||
12,724 | Patterson-UTI Energy, Inc. | 194,550 | |||||||||
6,492 | Peabody Energy Corp. | 303,306 | |||||||||
3,235 | Penn Virginia Corp. | 82,525 | |||||||||
7,500 | Petrohawk Energy Corp.* | 161,925 | |||||||||
4,481 | Pioneer Natural Resources Co. | 287,367 | |||||||||
5,682 | Plains Exploration & Production Co.* | 166,539 | |||||||||
10,711 | Pride International, Inc.* | 324,865 | |||||||||
2,230 | Range Resources Corp. | 106,505 | |||||||||
6,830 | Rowan Cos., Inc.* | 203,534 | |||||||||
35,820 | Schlumberger Ltd. | 2,558,264 | |||||||||
1,512 | SEACOR Holdings, Inc.* | 127,265 | |||||||||
5,625 | Ship Finance International Ltd. (Bermuda) | 111,375 | |||||||||
11,003 | Smith International, Inc. | 525,503 | |||||||||
6,683 | Southern Union Co. | 174,627 | |||||||||
4,016 | Southwestern Energy Co.* | 159,355 | |||||||||
28,918 | Spectra Energy Corp. | 674,946 | |||||||||
2,530 | St. Mary Land & Exploration Co.* | 101,807 |
See Notes to Financial Statements.
28
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1000 Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
33,325 | Sunoco, Inc. | $ | 1,092,393 | ||||||||
4,809 | Superior Energy Services, Inc.* | 130,132 | |||||||||
6,825 | Teekay Corp. (Bahamas) | 170,966 | |||||||||
41,493 | Tesoro Corp. | 545,633 | |||||||||
3,223 | Tidewater, Inc. | 172,785 | |||||||||
12,547 | Transocean Ltd.* | 909,030 | |||||||||
1,825 | Ultra Petroleum Corp.* | 87,180 | |||||||||
3,130 | Unit Corp.* | 149,520 | |||||||||
136,811 | Valero Energy Corp. | 2,844,301 | |||||||||
36,066 | Weatherford International Ltd. (Switzerland)* | 653,155 | |||||||||
23,168 | Western Refining, Inc.* | 124,180 | |||||||||
1,606 | Whiting Petroleum Corp.* | 145,070 | |||||||||
33,307 | Williams Cos., Inc. (The) | 786,378 | |||||||||
7,674 | World Fuel Services Corp. | 218,172 | |||||||||
17,349 | XTO Energy, Inc. | 824,424 | |||||||||
75,771,429 | |||||||||||
Financials—21.9% | |||||||||||
22,770 | ACE Ltd. | 1,211,136 | |||||||||
1,729 | Affiliated Managers Group, Inc.* | 145,547 | |||||||||
15,657 | Aflac, Inc. | 797,881 | |||||||||
1,580 | Alexandria Real Estate Equities, Inc. REIT | 111,880 | |||||||||
278 | Alleghany Corp.* | 82,610 | |||||||||
3,826 | Allied World Assurance Co. Holdings Ltd. (Bermuda) | 166,699 | |||||||||
53,916 | Allstate Corp. (The) | 1,761,436 | |||||||||
7,697 | AMB Property Corp. REIT | 214,438 | |||||||||
50,775 | American Express Co. | 2,341,743 | |||||||||
4,314 | American Financial Group, Inc. | 126,961 | |||||||||
146,159 | American International Group, Inc.* | 5,685,585 | |||||||||
559 | American National Insurance Co. | 61,579 | |||||||||
5,132 | AmeriCredit Corp.* | 122,860 | |||||||||
10,459 | Ameriprise Financial, Inc. | 484,879 | |||||||||
36,487 | Annaly Capital Management, Inc. REIT | 618,455 | |||||||||
11,146 | Aon Corp. | 473,259 | |||||||||
15,937 | Apartment Investment & Management Co., Class A REIT | 357,148 | |||||||||
2,410 | Arch Capital Group Ltd.* | 182,148 | |||||||||
5,884 | Arthur J. Gallagher & Co. | 154,573 | |||||||||
6,253 | Aspen Insurance Holdings Ltd. (Bermuda) | 168,706 | |||||||||
14,668 | Associated Banc-Corp. | 213,126 | |||||||||
11,989 | Assurant, Inc. | 436,759 | |||||||||
8,945 | Astoria Financial Corp. | 144,372 | |||||||||
3,231 | AvalonBay Communities, Inc. REIT | 336,153 | |||||||||
9,396 | Axis Capital Holdings Ltd. (Bermuda) | 292,873 | |||||||||
5,528 | BancorpSouth, Inc. | 122,390 | |||||||||
836,778 | Bank of America Corp. | 14,919,752 | |||||||||
2,755 | Bank of Hawaii Corp. | 145,684 | |||||||||
55,151 | Bank of New York Mellon Corp. (The) | 1,716,851 | |||||||||
47,344 | BB&T Corp. | 1,573,715 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
70,195 | Berkshire Hathaway, Inc., Class B* | $ | 5,405,015 | ||||||||
6,288 | BioMed Realty Trust, Inc. REIT* | 116,391 | |||||||||
2,392 | BlackRock, Inc. | 440,128 | |||||||||
936 | BOK Financial Corp. | 50,946 | |||||||||
6,822 | Boston Properties, Inc. REIT | 537,983 | |||||||||
13,346 | Brandywine Realty Trust REIT | 170,028 | |||||||||
2,974 | BRE Properties, Inc. REIT | 124,194 | |||||||||
5,910 | Brown & Brown, Inc. | 119,027 | |||||||||
4,021 | Camden Property Trust REIT | 194,737 | |||||||||
45,481 | Capital One Financial Corp. | 1,974,330 | |||||||||
41,722 | CapitalSource, Inc. | 249,080 | |||||||||
13,106 | CB Richard Ellis Group, Inc., Class A* | 226,996 | |||||||||
13,356 | CBL & Associates Properties, Inc. REIT | 194,998 | |||||||||
35,318 | Charles Schwab Corp. (The) | 681,284 | |||||||||
20,848 | Chubb Corp. (The) | 1,102,234 | |||||||||
15,244 | Cincinnati Financial Corp. | 432,930 | |||||||||
2,491,596 | Citigroup, Inc.* | 10,888,275 | |||||||||
3,020 | City National Corp. | 188,086 | |||||||||
2,477 | CME Group, Inc. | 813,472 | |||||||||
1,415 | CNA Financial Corp.* | 39,790 | |||||||||
10,288 | Colonial Properties Trust REIT | 162,242 | |||||||||
14,447 | Comerica, Inc. | 606,774 | |||||||||
3,941 | Commerce Bancshares, Inc. | 163,236 | |||||||||
47,532 | Conseco, Inc.* | 280,439 | |||||||||
2,341 | Corporate Office Properties Trust REIT | 94,693 | |||||||||
2,834 | Cullen/Frost Bankers, Inc. | 168,226 | |||||||||
4,130 | Delphi Financial Group, Inc., Class A | 113,575 | |||||||||
22,862 | Developers Diversified Realty Corp. REIT | 280,974 | |||||||||
40,324 | Discover Financial Services | 623,409 | |||||||||
5,278 | Douglas Emmett, Inc. REIT* | 88,354 | |||||||||
23,333 | Duke Realty Corp. REIT | 315,695 | |||||||||
131,390 | E*TRADE Financial Corp.* | 220,735 | |||||||||
5,160 | East West Bancorp, Inc. | 101,084 | |||||||||
3,335 | Eaton Vance Corp. | 117,525 | |||||||||
3,712 | Endurance Specialty Holdings Ltd. (Bermuda) | 136,787 | |||||||||
14,830 | Equity Residential REIT | 671,354 | |||||||||
2,046 | Erie Indemnity Co., Class A | 94,750 | |||||||||
1,077 | Essex Property Trust, Inc. REIT | 113,968 | |||||||||
3,809 | Everest Re Group Ltd. | 291,960 | |||||||||
492,305 | Federal National Mortgage Association* | 600,612 | |||||||||
1,914 | Federal Realty Investment Trust REIT | 148,124 | |||||||||
6,413 | Federated Investors, Inc., Class B | 154,682 | |||||||||
42,714 | Fidelity National Financial, Inc., Class A | 648,399 | |||||||||
74,895 | Fifth Third Bancorp | 1,116,684 | |||||||||
9,007 | First American Corp. (The) | 311,372 | |||||||||
336 | First Citizens BancShares, Inc., Class A | 69,216 | |||||||||
21,631 | First Horizon National Corp.* | 306,079 | |||||||||
16,508 | First Industrial Realty Trust, Inc. REIT* | 131,734 | |||||||||
9,083 | First Niagara Financial Group, Inc. | 126,254 | |||||||||
5,167 | FirstMerit Corp. | 121,424 |
See Notes to Financial Statements.
29
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1000 Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
33,445 | Fortress Investment Group LLC, Class A* | $ | 158,864 | ||||||||
4,845 | Franklin Resources, Inc. | 560,276 | |||||||||
13,115 | Fulton Financial Corp. | 137,708 | |||||||||
41,383 | Genworth Financial, Inc., Class A* | 683,647 | |||||||||
21,563 | Goldman Sachs Group, Inc. (The) | 3,130,948 | |||||||||
2,894 | Hanover Insurance Group, Inc. (The) | 130,375 | |||||||||
65,769 | Hartford Financial Services Group, Inc. (The) | 1,879,020 | |||||||||
5,697 | HCC Insurance Holdings, Inc. | 154,901 | |||||||||
11,829 | HCP, Inc. REIT | 379,947 | |||||||||
3,853 | Health Care REIT, Inc. REIT | 173,115 | |||||||||
3,852 | Highwoods Properties, Inc. REIT | 123,148 | |||||||||
2,060 | Home Properties, Inc. REIT | 102,361 | |||||||||
10,751 | Hospitality Properties Trust REIT | 284,794 | |||||||||
37,218 | Host Hotels & Resorts, Inc. REIT* | 605,165 | |||||||||
32,624 | HRPT Properties Trust REIT | 255,772 | |||||||||
24,846 | Hudson City Bancorp, Inc. | 330,452 | |||||||||
64,723 | Huntington Bancshares, Inc. | 438,175 | |||||||||
8,353 | Interactive Brokers Group, Inc., Class A* | 143,170 | |||||||||
1,180 | IntercontinentalExchange, Inc.* | 137,623 | |||||||||
3,325 | International Bancshares Corp. | 80,365 | |||||||||
12,176 | Invesco Ltd.(~) | 279,926 | |||||||||
39,945 | iStar Financial, Inc. REIT* | 268,031 | |||||||||
8,376 | Janus Capital Group, Inc.* | 117,934 | |||||||||
3,515 | Jefferies Group, Inc. | 95,678 | |||||||||
1,701 | Jones Lang LaSalle, Inc. | 134,175 | |||||||||
245,417 | JPMorgan Chase & Co. | 10,449,856 | |||||||||
95,146 | KeyCorp | 858,217 | |||||||||
21,441 | Kimco Realty Corp. REIT | 334,265 | |||||||||
12,014 | Legg Mason, Inc. | 380,724 | |||||||||
3,547 | Leucadia National Corp. | 89,775 | |||||||||
15,525 | Lexington Realty Trust REIT | 109,917 | |||||||||
7,045 | Liberty Property Trust REIT | 238,191 | |||||||||
27,671 | Lincoln National Corp. | 846,456 | |||||||||
25,598 | Loews Corp. | 953,270 | |||||||||
6,632 | M&T Bank Corp. | 579,305 | |||||||||
7,116 | Macerich Co. (The) REIT | 318,156 | |||||||||
5,497 | Mack-Cali Realty Corp. REIT | 188,877 | |||||||||
463 | Markel Corp.* | 177,255 | |||||||||
28,346 | Marsh & McLennan Cos., Inc. | 686,540 | |||||||||
70,151 | Marshall & Ilsley Corp. | 638,374 | |||||||||
19,704 | MBIA, Inc.* | 188,764 | |||||||||
2,224 | Mercury General Corp. | 100,058 | |||||||||
59,198 | MetLife, Inc. | 2,698,245 | |||||||||
19,310 | MF Global Holdings Ltd.* | 178,038 | |||||||||
17,025 | MFA Financial, Inc. REIT | 121,048 | |||||||||
7,209 | Montpelier Re Holdings Ltd. (Bermuda) | 119,669 | |||||||||
5,169 | Moody's Corp. | 127,778 | |||||||||
108,644 | Morgan Stanley | 3,283,222 | |||||||||
3,366 | MSCI, Inc., Class A* | 116,632 | |||||||||
14,375 | NASDAQ OMX Group, Inc. (The)* | 301,875 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
3,940 | National Retail Properties, Inc. REIT | $ | 92,708 | ||||||||
3,161 | Nationwide Health Properties, Inc. REIT | 110,698 | |||||||||
26,837 | New York Community Bancorp, Inc. | 442,005 | |||||||||
8,962 | Northern Trust Corp. | 492,731 | |||||||||
15,209 | NYSE Euronext | 496,270 | |||||||||
24,675 | Old Republic International Corp. | 370,372 | |||||||||
4,676 | PartnerRe Ltd. | 362,764 | |||||||||
9,290 | Pennsylvania Real Estate Investment Trust REIT | 146,689 | |||||||||
15,483 | People's United Financial, Inc. | 240,451 | |||||||||
10,068 | PHH Corp.* | 228,443 | |||||||||
34,686 | Phoenix Cos., Inc. (The)* | 112,036 | |||||||||
2,536 | Platinum Underwriters Holdings Ltd. (Bermuda) | 94,365 | |||||||||
8,405 | Plum Creek Timber Co., Inc. REIT | 334,519 | |||||||||
25,637 | PNC Financial Services Group, Inc. | 1,723,063 | |||||||||
144,288 | Popular, Inc.* | 568,495 | |||||||||
18,650 | Principal Financial Group, Inc. | 544,953 | |||||||||
1,578 | ProAssurance Corp.* | 96,179 | |||||||||
40,743 | Progressive Corp. (The) | 818,527 | |||||||||
42,576 | ProLogis REIT | 560,726 | |||||||||
10,158 | Protective Life Corp. | 244,503 | |||||||||
27,844 | Prudential Financial, Inc. | 1,769,765 | |||||||||
3,723 | Public Storage REIT | 360,796 | |||||||||
6,013 | Raymond James Financial, Inc. | 184,238 | |||||||||
4,515 | Rayonier, Inc. REIT | 221,145 | |||||||||
3,433 | Realty Income Corp. REIT | 112,568 | |||||||||
8,690 | Redwood Trust, Inc. REIT | 144,949 | |||||||||
3,941 | Regency Centers Corp. REIT | 161,778 | |||||||||
154,030 | Regions Financial Corp. | 1,361,625 | |||||||||
5,136 | Reinsurance Group of America, Inc. | 265,172 | |||||||||
3,839 | RenaissanceRe Holdings Ltd. (Bermuda) | 214,792 | |||||||||
4,341 | SEI Investments Co. | 97,499 | |||||||||
5,060 | Selective Insurance Group, Inc. | 84,553 | |||||||||
4,218 | Senior Housing Properties Trust REIT | 94,821 | |||||||||
8,905 | Simon Property Group, Inc. REIT | 792,723 | |||||||||
4,001 | SL Green Realty Corp. REIT | 248,742 | |||||||||
38,250 | SLM Corp.* | 468,180 | |||||||||
3,000 | StanCorp Financial Group, Inc. | 134,880 | |||||||||
20,292 | State Street Corp. | 882,702 | |||||||||
826 | Student Loan Corp. (The) | 23,326 | |||||||||
54,971 | SunTrust Banks, Inc. | 1,627,142 | |||||||||
17,312 | Susquehanna Bancshares, Inc. | 188,701 | |||||||||
1,825 | SVB Financial Group* | 89,845 | |||||||||
80,959 | Synovus Financial Corp. | 243,687 | |||||||||
6,038 | T. Rowe Price Group, Inc. | 347,245 | |||||||||
10,361 | TCF Financial Corp. | 193,025 | |||||||||
14,770 | TD Ameritrade Holding Corp.* | 295,695 | |||||||||
5,983 | Torchmark Corp. | 320,330 | |||||||||
4,494 | Transatlantic Holdings, Inc. | 223,487 | |||||||||
48,766 | Travelers Cos., Inc. (The) | 2,474,387 |
See Notes to Financial Statements.
30
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1000 Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
4,220 | Trustmark Corp. | $ | 103,306 | ||||||||
122,644 | U.S. Bancorp | 3,283,180 | |||||||||
9,924 | UDR, Inc. REIT | 201,556 | |||||||||
6,704 | Unitrin, Inc. | 196,092 | |||||||||
25,807 | Unum Group | 631,497 | |||||||||
9,641 | Valley National Bancorp | 156,570 | |||||||||
4,122 | Ventas, Inc. REIT | 194,682 | |||||||||
7,965 | Vornado Realty Trust REIT | 664,042 | |||||||||
9,981 | W.R. Berkley Corp. | 269,487 | |||||||||
6,022 | Washington Federal, Inc. | 123,873 | |||||||||
7,217 | Webster Financial Corp. | 149,536 | |||||||||
7,516 | Weingarten Realty Investors REIT | 173,770 | |||||||||
296,644 | Wells Fargo & Co. | 9,821,883 | |||||||||
55 | Wesco Financial Corp. | 20,848 | |||||||||
665 | White Mountains Insurance Group Ltd. | 228,494 | |||||||||
8,540 | Whitney Holding Corp. | 116,998 | |||||||||
7,970 | Willis Group Holdings PLC | 274,567 | |||||||||
7,270 | Wilmington Trust Corp. | 125,989 | |||||||||
28,983 | XL Capital Ltd., Class A | 515,897 | |||||||||
2,105 | Zenith National Insurance Corp. | 79,611 | |||||||||
16,700 | Zions Bancorp | 479,791 | |||||||||
141,891,523 | |||||||||||
Health Care—8.9% | |||||||||||
45,670 | Abbott Laboratories | 2,336,477 | |||||||||
26,598 | Aetna, Inc. | 785,971 | |||||||||
1,261 | Alcon, Inc. (Switzerland)* | 196,539 | |||||||||
4,916 | Allergan, Inc. | 313,100 | |||||||||
4,246 | AMERIGROUP Corp.* | 153,875 | |||||||||
41,354 | AmerisourceBergen Corp. | 1,275,771 | |||||||||
32,843 | Amgen, Inc.* | 1,883,874 | |||||||||
14,061 | Baxter International, Inc. | 663,960 | |||||||||
2,201 | Beckman Coulter, Inc. | 137,342 | |||||||||
6,800 | Becton, Dickinson and Co. | 519,316 | |||||||||
8,562 | Biogen Idec, Inc.* | 455,927 | |||||||||
710 | Bio-Rad Laboratories, Inc., Class A* | 79,300 | |||||||||
104,594 | Boston Scientific Corp.* | 719,607 | |||||||||
95,630 | Bristol-Myers Squibb Co. | 2,418,483 | |||||||||
4,452 | Brookdale Senior Living, Inc.* | 95,718 | |||||||||
1,952 | C.R. Bard, Inc. | 168,907 | |||||||||
53,838 | Cardinal Health, Inc. | 1,867,640 | |||||||||
11,668 | CareFusion Corp.* | 321,803 | |||||||||
2,901 | Celgene Corp.* | 179,717 | |||||||||
5,060 | Centene Corp.* | 115,874 | |||||||||
2,472 | Cephalon, Inc.* | 158,702 | |||||||||
1,475 | Cerner Corp.* | 125,242 | |||||||||
2,704 | Charles River Laboratories International, Inc.* | 90,530 | |||||||||
15,642 | CIGNA Corp. | 501,483 | |||||||||
7,819 | Community Health Systems, Inc.* | 319,484 | |||||||||
2,013 | Covance, Inc.* | 115,023 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
18,797 | Coventry Health Care, Inc.* | $ | 446,241 | ||||||||
13,333 | Covidien PLC (Ireland) | 639,851 | |||||||||
4,644 | DaVita, Inc.* | 289,925 | |||||||||
3,852 | DENTSPLY International, Inc. | 141,137 | |||||||||
981 | Edwards Lifesciences Corp.* | 101,121 | |||||||||
64,292 | Eli Lilly & Co. | 2,248,291 | |||||||||
1,769 | Emergency Medical Services Corp., Class A* | 93,545 | |||||||||
4,898 | Endo Pharmaceuticals Holdings, Inc.* | 107,266 | |||||||||
5,471 | Express Scripts, Inc.* | 547,811 | |||||||||
10,779 | Forest Laboratories, Inc.* | 293,836 | |||||||||
7,414 | Genzyme Corp.* | 394,721 | |||||||||
11,689 | Gilead Sciences, Inc.* | 463,703 | |||||||||
18,667 | Health Management Associates, Inc., Class A* | 173,976 | |||||||||
17,011 | Health Net, Inc.* | 374,582 | |||||||||
3,428 | Healthspring, Inc.* | 60,333 | |||||||||
3,828 | Henry Schein, Inc.* | 231,479 | |||||||||
4,024 | Hill-Rom Holdings, Inc. | 127,601 | |||||||||
9,344 | Hologic, Inc.* | 166,977 | |||||||||
4,406 | Hospira, Inc.* | 236,999 | |||||||||
17,674 | Humana, Inc.* | 808,055 | |||||||||
290 | Intuitive Surgical, Inc.* | 104,562 | |||||||||
2,977 | Inverness Medical Innovations, Inc.* | 118,425 | |||||||||
93,229 | Johnson & Johnson | 5,994,625 | |||||||||
6,103 | Kindred Healthcare, Inc.* | 108,878 | |||||||||
3,063 | Kinetic Concepts, Inc.* | 132,628 | |||||||||
18,782 | King Pharmaceuticals, Inc.* | 184,064 | |||||||||
3,592 | Laboratory Corp. of America Holdings* | 282,223 | |||||||||
4,383 | Life Technologies Corp.* | 239,794 | |||||||||
4,651 | LifePoint Hospitals, Inc.* | 177,575 | |||||||||
3,628 | Lincare Holdings, Inc.* | 169,391 | |||||||||
2,255 | Magellan Health Services, Inc.* | 95,184 | |||||||||
30,227 | McKesson Corp. | 1,959,012 | |||||||||
20,140 | Medco Health Solutions, Inc.* | 1,186,649 | |||||||||
1,625 | MEDNAX, Inc.* | 89,278 | |||||||||
31,789 | Medtronic, Inc. | 1,388,861 | |||||||||
103,024 | Merck & Co., Inc. | 3,609,961 | |||||||||
937 | Mettler-Toledo International, Inc.* | 117,575 | |||||||||
1,256 | Millipore Corp.* | 133,324 | |||||||||
5,626 | Mylan, Inc. | 123,941 | |||||||||
8,669 | Omnicare, Inc. | 240,912 | |||||||||
5,122 | Owens & Minor, Inc. | 161,087 | |||||||||
4,673 | Patterson Cos., Inc.* | 149,489 | |||||||||
4,835 | PerkinElmer, Inc. | 121,117 | |||||||||
519,834 | Pfizer, Inc. | 8,691,624 | |||||||||
4,979 | Pharmaceutical Product Development, Inc. | 136,923 | |||||||||
6,479 | Quest Diagnostics, Inc. | 370,340 | |||||||||
8,093 | St. Jude Medical, Inc.* | 330,356 | |||||||||
6,437 | Stryker Corp. | 369,741 | |||||||||
2,000 | Teleflex, Inc. | 122,640 |
See Notes to Financial Statements.
31
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1000 Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
48,514 | Tenet Healthcare Corp.* | $ | 303,213 | ||||||||
16,936 | Thermo Fisher Scientific, Inc.* | 936,222 | |||||||||
68,450 | UnitedHealth Group, Inc. | 2,074,720 | |||||||||
5,231 | Universal American Financial Corp.* | 80,296 | |||||||||
5,181 | Universal Health Services, Inc., Class B | 192,319 | |||||||||
2,643 | Varian Medical Systems, Inc.* | 149,012 | |||||||||
1,393 | Warner Chilcott PLC, Class A (Ireland)* | 39,505 | |||||||||
1,718 | Waters Corp.* | 123,679 | |||||||||
4,176 | Watson Pharmaceuticals, Inc.* | 178,816 | |||||||||
2,250 | WellCare Health Plans, Inc.* | 64,418 | |||||||||
42,104 | WellPoint, Inc.* | 2,265,195 | |||||||||
8,446 | Zimmer Holdings, Inc.* | 514,446 | |||||||||
57,779,135 | |||||||||||
Industrials—11.9% | |||||||||||
25,105 | 3M Co. | 2,226,060 | |||||||||
1,780 | A.O. Smith Corp. | 91,901 | |||||||||
3,190 | ABM Industries, Inc. | 68,553 | |||||||||
2,170 | Acuity Brands, Inc. | 98,106 | |||||||||
6,315 | Aecom Technology Corp.* | 189,892 | |||||||||
9,785 | Aercap Holdings NV (Netherlands)* | 135,033 | |||||||||
7,915 | AGCO Corp.* | 277,183 | |||||||||
3,802 | Alaska Air Group, Inc.* | 157,441 | |||||||||
11,305 | Albany International Corp., Class A | 287,938 | |||||||||
3,077 | Alexander & Baldwin, Inc. | 109,480 | |||||||||
1,881 | Alliant Techsystems, Inc.* | 152,192 | |||||||||
1,588 | Amerco, Inc.* | 99,171 | |||||||||
3,115 | AMETEK, Inc. | 134,724 | |||||||||
55,377 | AMR Corp.* | 408,682 | |||||||||
1,354 | Armstrong World Industries, Inc.* | 58,967 | |||||||||
9,035 | Avery Dennison Corp. | 352,636 | |||||||||
31,936 | Avis Budget Group, Inc.* | 482,872 | |||||||||
4,320 | BE Aerospace, Inc.* | 128,347 | |||||||||
32,972 | Boeing Co. (The) | 2,388,162 | |||||||||
5,388 | Briggs & Stratton Corp. | 127,911 | |||||||||
3,213 | Brink's Co. (The) | 85,562 | |||||||||
4,785 | C.H. Robinson Worldwide, Inc. | 288,536 | |||||||||
3,352 | Carlisle Cos., Inc. | 126,471 | |||||||||
32,408 | Caterpillar, Inc. | 2,206,661 | |||||||||
8,625 | Cintas Corp. | 235,031 | |||||||||
16,237 | Continental Airlines, Inc., Class B* | 362,897 | |||||||||
3,993 | Con-way, Inc. | 155,088 | |||||||||
6,866 | Cooper Industries PLC, Class A (Ireland) | 337,121 | |||||||||
5,494 | Corrections Corp. of America* | 113,836 | |||||||||
5,865 | Covanta Holding Corp.* | 102,520 | |||||||||
3,416 | Crane Co. | 122,771 | |||||||||
19,486 | CSX Corp. | 1,092,190 | |||||||||
7,635 | Cummins, Inc. | 551,476 | |||||||||
8,573 | Danaher Corp. | 722,532 | |||||||||
16,901 | Deere & Co. | 1,011,018 | |||||||||
22,113 | Delta Air Lines, Inc.* | 267,125 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
4,891 | Deluxe Corp. | $ | 102,564 | ||||||||
4,410 | Dollar Thrifty Automotive Group, Inc.* | 193,996 | |||||||||
2,048 | Donaldson Co., Inc. | 94,822 | |||||||||
8,597 | Dover Corp. | 448,935 | |||||||||
1,181 | Dun & Bradstreet Corp. (The) | 90,902 | |||||||||
5,485 | DynCorp International, Inc., Class A* | 94,342 | |||||||||
9,421 | Eaton Corp. | 726,924 | |||||||||
7,268 | EMCOR Group, Inc.* | 207,574 | |||||||||
29,171 | Emerson Electric Co. | 1,523,601 | |||||||||
4,766 | Equifax, Inc. | 160,138 | |||||||||
2,060 | Esterline Technologies Corp.* | 114,907 | |||||||||
4,602 | Expeditors International of Washington, Inc. | 187,486 | |||||||||
3,180 | Fastenal Co. | 173,914 | |||||||||
15,579 | FedEx Corp. | 1,402,266 | |||||||||
577 | First Solar, Inc.* | 82,828 | |||||||||
1,298 | Flowserve Corp. | 148,725 | |||||||||
9,241 | Fluor Corp. | 488,294 | |||||||||
5,636 | Foster Wheeler AG (Switzerland)* | 168,967 | |||||||||
2,284 | Gardner Denver, Inc. | 114,862 | |||||||||
4,705 | GATX Corp. | 153,571 | |||||||||
5,579 | General Cable Corp.* | 159,392 | |||||||||
17,924 | General Dynamics Corp. | 1,368,677 | |||||||||
871,143 | General Electric Co. | 16,429,757 | |||||||||
5,002 | Goodrich Corp. | 371,048 | |||||||||
3,205 | Granite Construction, Inc. | 107,720 | |||||||||
5,872 | Harsco Corp. | 181,797 | |||||||||
70,397 | Hertz Global Holdings, Inc.* | 1,017,941 | |||||||||
3,537 | HNI Corp. | 109,788 | |||||||||
38,369 | Honeywell International, Inc. | 1,821,376 | |||||||||
3,180 | Hubbell, Inc., Class B | 147,775 | |||||||||
2,295 | IDEX Corp. | 77,112 | |||||||||
21,238 | Illinois Tool Works, Inc. | 1,085,262 | |||||||||
17,467 | Ingersoll-Rand PLC (Ireland) | 645,930 | |||||||||
7,119 | Iron Mountain, Inc.* | 179,043 | |||||||||
8,072 | ITT Corp. | 448,561 | |||||||||
3,033 | J.B. Hunt Transport Services, Inc. | 111,796 | |||||||||
8,458 | Jacobs Engineering Group, Inc.* | 407,845 | |||||||||
20,724 | JetBlue Airways Corp.* | 115,847 | |||||||||
2,870 | Joy Global, Inc. | 163,045 | |||||||||
4,480 | Kansas City Southern* | 181,664 | |||||||||
11,370 | KBR, Inc. | 251,050 | |||||||||
6,991 | Kelly Services, Inc., Class A* | 112,415 | |||||||||
4,316 | Kennametal, Inc. | 141,824 | |||||||||
6,316 | L-3 Communications Holdings, Inc. | 590,988 | |||||||||
2,603 | Lennox International, Inc. | 117,812 | |||||||||
2,079 | Lincoln Electric Holdings, Inc. | 124,615 | |||||||||
19,780 | Lockheed Martin Corp. | 1,679,124 | |||||||||
9,435 | Manitowoc Co., Inc. (The) | 132,184 | |||||||||
8,341 | Manpower, Inc. | 467,930 | |||||||||
43,765 | Masco Corp. | 710,306 |
See Notes to Financial Statements.
32
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1000 Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
7,736 | McDermott International, Inc.* | $ | 212,044 | ||||||||
2,704 | Moog, Inc., Class A* | 100,508 | |||||||||
2,239 | MSC Industrial Direct Co., Class A | 122,003 | |||||||||
5,958 | Navistar International Corp.* | 288,010 | |||||||||
19,744 | Norfolk Southern Corp. | 1,171,412 | |||||||||
22,491 | Northrop Grumman Corp. | 1,525,565 | |||||||||
3,878 | Oshkosh Corp.* | 149,768 | |||||||||
8,703 | Owens Corning* | 302,690 | |||||||||
22,052 | PACCAR, Inc. | 1,025,859 | |||||||||
3,343 | Pall Corp. | 130,344 | |||||||||
7,572 | Parker Hannifin Corp. | 523,831 | |||||||||
5,327 | Pentair, Inc. | 192,624 | |||||||||
15,114 | Pitney Bowes, Inc. | 383,896 | |||||||||
2,733 | Precision Castparts Corp. | 350,753 | |||||||||
8,625 | Quanta Services, Inc.* | 173,621 | |||||||||
23,287 | R.R. Donnelley & Sons Co. | 500,438 | |||||||||
18,329 | Raytheon Co. | 1,068,581 | |||||||||
1,577 | Regal-Beloit Corp. | 99,777 | |||||||||
12,727 | Republic Services, Inc. | 394,919 | |||||||||
5,631 | Robert Half International, Inc. | 154,177 | |||||||||
5,206 | Rockwell Automation, Inc. | 316,108 | |||||||||
4,330 | Rockwell Collins, Inc. | 281,450 | |||||||||
2,655 | Roper Industries, Inc. | 162,008 | |||||||||
4,510 | RSC Holdings, Inc.* | 41,357 | |||||||||
7,534 | Ryder System, Inc. | 350,482 | |||||||||
26 | Seaboard Corp. | 37,960 | |||||||||
5,447 | Shaw Group, Inc. (The)* | 208,511 | |||||||||
7,726 | SkyWest, Inc. | 115,736 | |||||||||
3,362 | Snap-On, Inc. | 161,981 | |||||||||
31,455 | Southwest Airlines Co. | 414,577 | |||||||||
7,834 | Spirit Aerosystems Holdings, Inc., Class A* | 173,758 | |||||||||
3,369 | SPX Corp. | 235,426 | |||||||||
17,442 | Steelcase, Inc., Class A | 143,199 | |||||||||
15,167 | Terex Corp.* | 402,229 | |||||||||
24,128 | Textron, Inc. | 551,084 | |||||||||
3,409 | Thomas & Betts Corp.* | 142,973 | |||||||||
7,287 | Timken Co. (The) | 256,357 | |||||||||
985 | TransDigm Group, Inc. | 54,441 | |||||||||
8,529 | Trinity Industries, Inc. | 212,287 | |||||||||
4,600 | Tutor Perini Corp.* | 111,642 | |||||||||
37,821 | Tyco International Ltd. (Switzerland) | 1,467,077 | |||||||||
14,992 | UAL Corp.* | 323,527 | |||||||||
19,259 | Union Pacific Corp. | 1,457,136 | |||||||||
40,671 | United Parcel Service, Inc., Class B | 2,811,993 | |||||||||
30,712 | United Rentals, Inc.* | 441,024 | |||||||||
2,417 | United Stationers, Inc.* | 147,969 | |||||||||
37,819 | United Technologies Corp. | 2,834,534 | |||||||||
5,778 | URS Corp.* | 296,700 | |||||||||
7,687 | US Airways Group, Inc.* | 54,347 | |||||||||
10,339 | USG Corp.* | 244,000 | |||||||||
5,960 | UTi Worldwide, Inc. (British Virgin Islands)* | 94,466 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
2,805 | W.W. Grainger, Inc. | $ | 310,065 | ||||||||
3,567 | Waste Connections, Inc.* | 127,663 | |||||||||
27,865 | Waste Management, Inc. | 966,358 | |||||||||
3,403 | Werner Enterprises, Inc. | 76,295 | |||||||||
6,241 | WESCO International, Inc.* | 253,509 | |||||||||
77,046,377 | |||||||||||
Information Technology—10.9% | |||||||||||
19,146 | Accenture PLC, Class A (Ireland) | 835,531 | |||||||||
16,785 | Activision Blizzard, Inc. | 185,978 | |||||||||
8,416 | Adobe Systems, Inc.* | 282,693 | |||||||||
25,232 | Advanced Micro Devices, Inc.* | 228,602 | |||||||||
8,147 | Agilent Technologies, Inc.* | 295,410 | |||||||||
4,075 | Akamai Technologies, Inc.* | 158,232 | |||||||||
1,889 | Alliance Data Systems Corp.* | 141,788 | |||||||||
3,931 | Altera Corp. | 99,690 | |||||||||
7,750 | Amdocs Ltd. (Guernsey)* | 247,535 | |||||||||
15,959 | Amkor Technology, Inc.* | 120,331 | |||||||||
3,370 | Amphenol Corp., Class A | 155,728 | |||||||||
9,619 | Analog Devices, Inc. | 287,897 | |||||||||
3,699 | Anixter International, Inc.* | 193,828 | |||||||||
17,034 | AOL, Inc.* | 397,914 | |||||||||
11,374 | Apple, Inc.* | 2,969,979 | |||||||||
50,253 | Applied Materials, Inc. | 692,486 | |||||||||
16,579 | Arrow Electronics, Inc.* | 505,659 | |||||||||
3,603 | Autodesk, Inc.* | 122,538 | |||||||||
17,323 | Automatic Data Processing, Inc. | 751,125 | |||||||||
17,074 | Avnet, Inc.* | 545,856 | |||||||||
3,132 | AVX Corp. | 48,389 | |||||||||
5,252 | Benchmark Electronics, Inc.* | 113,653 | |||||||||
3,222 | BMC Software, Inc.* | 126,818 | |||||||||
9,196 | Brightpoint, Inc.* | 74,396 | |||||||||
8,137 | Broadcom Corp., Class A | 280,645 | |||||||||
4,638 | Broadridge Financial Solutions, Inc. | 110,431 | |||||||||
19,068 | Brocade Communications Systems, Inc.* | 123,751 | |||||||||
10,478 | CA, Inc. | 239,003 | |||||||||
2,002 | CACI International, Inc., Class A* | 94,955 | |||||||||
4,160 | Check Point Software Technologies Ltd. (Israel)* | 148,179 | |||||||||
125,440 | Cisco Systems, Inc.* | 3,376,845 | |||||||||
3,157 | Citrix Systems, Inc.* | 148,379 | |||||||||
3,846 | Cognizant Technology Solutions Corp., Class A* | 196,838 | |||||||||
4,233 | CommScope, Inc.* | 137,911 | |||||||||
14,683 | Computer Sciences Corp.* | 769,242 | |||||||||
10,684 | Convergys Corp.* | 135,046 | |||||||||
40,186 | Corning, Inc. | 773,580 | |||||||||
135,364 | Dell, Inc.* | 2,190,190 | |||||||||
4,033 | Diebold, Inc. | 126,435 | |||||||||
1,614 | Dolby Laboratories, Inc., Class A* | 110,914 | |||||||||
2,981 | DST Systems, Inc. | 126,543 |
See Notes to Financial Statements.
33
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1000 Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
44,216 | eBay, Inc.* | $ | 1,052,783 | ||||||||
4,690 | EchoStar Corp., Class A* | 90,095 | |||||||||
12,332 | Electronic Arts, Inc.* | 238,871 | |||||||||
61,972 | EMC Corp.* | 1,178,088 | |||||||||
6,558 | Fairchild Semiconductor International, Inc.* | 73,581 | |||||||||
19,558 | Fidelity National Information Services, Inc. | 514,180 | |||||||||
6,328 | Fiserv, Inc.* | 323,298 | |||||||||
89,446 | Flextronics International Ltd. (Singapore)* | 693,207 | |||||||||
3,190 | FLIR Systems, Inc.* | 97,582 | |||||||||
3,477 | Google, Inc., Class A* | 1,826,955 | |||||||||
4,606 | Harris Corp. | 237,117 | |||||||||
3,723 | Hewitt Associates, Inc., Class A* | 152,606 | |||||||||
80,261 | Hewlett-Packard Co. | 4,171,164 | |||||||||
9,236 | IAC/InterActiveCorp.* | 207,071 | |||||||||
32,908 | Ingram Micro, Inc., Class A* | 597,609 | |||||||||
9,097 | Insight Enterprises, Inc.* | 136,728 | |||||||||
233,433 | Intel Corp. | 5,329,275 | |||||||||
37,915 | International Business Machines Corp. | 4,891,035 | |||||||||
9,075 | Intuit, Inc.* | 328,152 | |||||||||
18,021 | Jabil Circuit, Inc. | 276,082 | |||||||||
11,948 | Juniper Networks, Inc.* | 339,443 | |||||||||
6,233 | KLA-Tencor Corp. | 212,296 | |||||||||
4,107 | Lam Research Corp.* | 166,539 | |||||||||
5,843 | Lexmark International, Inc., Class A* | 216,483 | |||||||||
5,711 | Linear Technology Corp. | 171,673 | |||||||||
23,834 | LSI Corp.* | 143,481 | |||||||||
10,945 | Marvell Technology Group Ltd. (Bermuda)* | 226,014 | |||||||||
1,645 | MasterCard, Inc., Class A | 408,026 | |||||||||
13,980 | Maxim Integrated Products, Inc. | 271,492 | |||||||||
2,788 | McAfee, Inc.* | 96,883 | |||||||||
16,086 | MEMC Electronic Materials, Inc.* | 208,635 | |||||||||
6,851 | Microchip Technology, Inc. | 200,118 | |||||||||
44,835 | Micron Technology, Inc.* | 419,207 | |||||||||
361,154 | Microsoft Corp. | 11,029,643 | |||||||||
3,899 | Molex, Inc. | 87,377 | |||||||||
4,201 | Molex, Inc., Class A | 79,819 | |||||||||
6,190 | Monster Worldwide, Inc.* | 107,892 | |||||||||
178,251 | Motorola, Inc.* | 1,260,235 | |||||||||
9,659 | National Semiconductor Corp. | 142,760 | |||||||||
13,303 | NCR Corp.* | 175,067 | |||||||||
5,103 | NetApp, Inc.* | 176,921 | |||||||||
4,026 | Novellus Systems, Inc.* | 105,481 | |||||||||
4,780 | Nuance Communications, Inc.* | 87,331 | |||||||||
12,160 | NVIDIA Corp.* | 191,155 | |||||||||
13,130 | ON Semiconductor Corp.* | 104,252 | |||||||||
69,556 | Oracle Corp. | 1,797,327 | |||||||||
11,181 | Paychex, Inc. | 342,139 | |||||||||
41,522 | QUALCOMM, Inc. | 1,608,562 | |||||||||
16,334 | SAIC, Inc.* | 284,375 | |||||||||
8,262 | SanDisk Corp.* | 329,571 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
13,529 | Sanmina-SCI Corp.* | $ | 241,222 | ||||||||
21,187 | Seagate Technology (Cayman Islands)* | 389,205 | |||||||||
1,970 | Sybase, Inc.* | 85,459 | |||||||||
30,557 | Symantec Corp.* | 512,441 | |||||||||
1,879 | SYNNEX Corp.* | 51,522 | |||||||||
5,161 | Synopsys, Inc.* | 117,206 | |||||||||
12,499 | Tech Data Corp.* | 536,207 | |||||||||
18,650 | Tellabs, Inc.* | 169,342 | |||||||||
3,530 | Teradata Corp.* | 102,617 | |||||||||
49,758 | Texas Instruments, Inc. | 1,294,206 | |||||||||
14,339 | Total System Services, Inc. | 229,567 | |||||||||
3,235 | Trimble Navigation Ltd.* | 105,817 | |||||||||
24,469 | Tyco Electronics Ltd. (Switzerland) | 785,944 | |||||||||
3,190 | Unisys Corp.* | 89,384 | |||||||||
4,527 | VeriSign, Inc.* | 123,451 | |||||||||
10,531 | Visa, Inc., Class A | 950,212 | |||||||||
14,356 | Vishay Intertechnology, Inc.* | 149,446 | |||||||||
2,367 | VMware, Inc., Class A* | 145,902 | |||||||||
8,246 | Western Digital Corp.* | 338,828 | |||||||||
18,586 | Western Union Co. (The) | 339,195 | |||||||||
67,789 | Xerox Corp. | 738,900 | |||||||||
7,104 | Xilinx, Inc. | 183,141 | |||||||||
46,752 | Yahoo!, Inc.* | 772,811 | |||||||||
70,528,644 | |||||||||||
Materials—3.7% | |||||||||||
9,136 | Air Products & Chemicals, Inc. | 701,462 | |||||||||
1,787 | Airgas, Inc. | 113,385 | |||||||||
7,824 | AK Steel Holding Corp. | 131,052 | |||||||||
2,301 | Albemarle Corp. | 105,064 | |||||||||
98,031 | Alcoa, Inc. | 1,317,537 | |||||||||
5,040 | Allegheny Technologies, Inc. | 269,489 | |||||||||
2,765 | AptarGroup, Inc. | 119,006 | |||||||||
7,879 | Ashland, Inc. | 469,273 | |||||||||
4,548 | Ball Corp. | 241,999 | |||||||||
6,649 | Bemis Co., Inc. | 202,196 | |||||||||
4,108 | Cabot Corp. | 133,674 | |||||||||
6,232 | Celanese Corp., Series A | 199,362 | |||||||||
6,051 | Century Aluminum Co.* | 81,568 | |||||||||
1,372 | CF Industries Holdings, Inc. | 114,795 | |||||||||
2,420 | Cliffs Natural Resources, Inc. | 151,323 | |||||||||
13,976 | Commercial Metals Co. | 207,963 | |||||||||
9,503 | Crown Holdings, Inc.* | 247,078 | |||||||||
3,005 | Cytec Industries, Inc. | 144,420 | |||||||||
4,119 | Domtar Corp. | 291,790 | |||||||||
86,883 | Dow Chemical Co. (The) | 2,678,603 | |||||||||
51,612 | E.I. du Pont de Nemours & Co. | 2,056,222 | |||||||||
4,850 | Eastman Chemical Co. | 324,562 | |||||||||
6,683 | Ecolab, Inc. | 326,398 | |||||||||
2,288 | FMC Corp. | 145,608 | |||||||||
15,248 | Freeport-McMoRan Copper & Gold, Inc. | 1,151,681 |
See Notes to Financial Statements.
34
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1000 Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
9,709 | Graphic Packaging Holding Co.* | $ | 35,826 | ||||||||
2,361 | Greif, Inc., Class A | 139,724 | |||||||||
16,910 | Huntsman Corp. | 192,943 | |||||||||
3,222 | International Flavors & Fragrances, Inc. | 161,390 | |||||||||
43,230 | International Paper Co. | 1,155,970 | |||||||||
12,267 | Louisiana-Pacific Corp.* | 144,260 | |||||||||
2,855 | Lubrizol Corp. (The) | 257,921 | |||||||||
1,792 | Martin Marietta Materials, Inc. | 171,817 | |||||||||
14,838 | MeadWestvaco Corp. | 403,148 | |||||||||
11,588 | Monsanto Co. | 730,739 | |||||||||
3,332 | Mosaic Co. (The) | 170,399 | |||||||||
5,817 | Nalco Holding Co. | 143,854 | |||||||||
11,741 | Newmont Mining Corp. | 658,435 | |||||||||
23,554 | Nucor Corp. | 1,067,467 | |||||||||
5,807 | Olin Corp. | 121,947 | |||||||||
8,920 | Owens-Illinois, Inc.* | 316,125 | |||||||||
4,473 | Packaging Corp. of America | 110,617 | |||||||||
6,866 | Pactiv Corp.* | 174,465 | |||||||||
9,772 | PPG Industries, Inc. | 687,656 | |||||||||
9,420 | Praxair, Inc. | 789,113 | |||||||||
4,871 | Reliance Steel & Aluminum Co. | 237,754 | |||||||||
1,645 | Rock-Tenn Co., Class A | 84,882 | |||||||||
4,448 | Rockwood Holdings, Inc.* | 133,173 | |||||||||
8,387 | RPM International, Inc. | 185,185 | |||||||||
3,239 | Scotts Miracle-Gro Co. (The), Class A | 156,930 | |||||||||
10,014 | Sealed Air Corp. | 215,301 | |||||||||
3,284 | Sigma-Aldrich Corp. | 194,741 | |||||||||
1,427 | Silgan Holdings, Inc. | 86,091 | |||||||||
6,688 | Sonoco Products Co. | 221,573 | |||||||||
11,788 | Southern Copper Corp. | 360,477 | |||||||||
12,869 | Steel Dynamics, Inc. | 202,172 | |||||||||
16,292 | Temple-Inland, Inc. | 379,929 | |||||||||
10,381 | United States Steel Corp. | 567,426 | |||||||||
5,402 | Valspar Corp. (The) | 169,191 | |||||||||
7,320 | Vulcan Materials Co. | 419,290 | |||||||||
3,000 | W.R. Grace & Co.* | 86,670 | |||||||||
1,561 | Westlake Chemical Corp. | 43,833 | |||||||||
17,439 | Weyerhaeuser Co. | 863,579 | |||||||||
7,163 | Worthington Industries, Inc. | 114,393 | |||||||||
24,281,916 | |||||||||||
Telecommunication Services—4.4% | |||||||||||
4,571 | American Tower Corp., Class A* | 186,543 | |||||||||
513,764 | AT&T, Inc. | 13,388,690 | |||||||||
6,939 | CenturyTel, Inc. | 236,689 | |||||||||
5,118 | Crown Castle International Corp.* | 193,716 | |||||||||
52,115 | Frontier Communications Corp. | 414,835 | |||||||||
6,090 | Leap Wireless International, Inc.* | 111,569 | |||||||||
107,663 | Level 3 Communications, Inc.* | 167,954 | |||||||||
17,952 | MetroPCS Communications, Inc.* | 136,974 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
2,419 | Millicom International Cellular SA (Luxembourg) | $ | 213,549 | ||||||||
5,257 | NII Holdings, Inc.* | 223,002 | |||||||||
127,559 | Qwest Communications International, Inc. | 667,134 | |||||||||
561,174 | Sprint Nextel Corp.* | 2,384,990 | |||||||||
9,284 | Telephone & Data Systems, Inc. | 321,783 | |||||||||
6,470 | tw telecom, Inc.* | 115,166 | |||||||||
5,723 | United States Cellular Corp.* | 240,824 | |||||||||
321,573 | Verizon Communications, Inc. | 9,290,244 | |||||||||
28,150 | Windstream Corp. | 311,057 | |||||||||
28,604,719 | |||||||||||
Utilities—5.5% | |||||||||||
92,505 | AES Corp. (The)* | 1,067,508 | |||||||||
5,767 | AGL Resources, Inc. | 227,854 | |||||||||
13,067 | Allegheny Energy, Inc. | 284,599 | |||||||||
8,583 | Alliant Energy Corp. | 293,539 | |||||||||
30,604 | Ameren Corp. | 794,480 | |||||||||
34,050 | American Electric Power Co., Inc. | 1,167,915 | |||||||||
8,554 | American Water Works Co., Inc. | 186,306 | |||||||||
5,467 | Aqua America, Inc. | 100,210 | |||||||||
9,614 | Atmos Energy Corp. | 284,382 | |||||||||
4,265 | Avista Corp. | 92,252 | |||||||||
3,108 | Black Hills Corp. | 102,222 | |||||||||
23,475 | Calpine Corp.* | 319,964 | |||||||||
33,383 | CenterPoint Energy, Inc. | 479,380 | |||||||||
3,470 | Cleco Corp. | 95,078 | |||||||||
17,364 | CMS Energy Corp. | 282,339 | |||||||||
22,697 | Consolidated Edison, Inc. | 1,025,904 | |||||||||
18,965 | Constellation Energy Group, Inc. | 670,413 | |||||||||
37,437 | Dominion Resources, Inc. | 1,564,867 | |||||||||
5,239 | DPL, Inc. | 147,635 | |||||||||
14,856 | DTE Energy Co. | 715,614 | |||||||||
111,045 | Duke Energy Corp. | 1,863,335 | |||||||||
174,210 | Dynegy, Inc., Class A* | 231,699 | |||||||||
28,945 | Edison International | 994,840 | |||||||||
3,177 | Energen Corp. | 155,260 | |||||||||
12,111 | Entergy Corp. | 984,503 | |||||||||
4,849 | EQT Corp. | 210,883 | |||||||||
46,537 | Exelon Corp. | 2,028,548 | |||||||||
33,495 | FirstEnergy Corp. | 1,268,456 | |||||||||
27,765 | FPL Group, Inc. | 1,445,168 | |||||||||
12,432 | Great Plains Energy, Inc. | 240,311 | |||||||||
8,415 | Hawaiian Electric Industries, Inc. | 196,490 | |||||||||
3,535 | IDACORP, Inc. | 127,543 | |||||||||
7,338 | Integrys Energy Group, Inc. | 364,038 | |||||||||
12,935 | MDU Resources Group, Inc. | 274,222 | |||||||||
23,780 | Mirant Corp.* | 277,275 | |||||||||
3,703 | National Fuel Gas Co. | 192,630 | |||||||||
3,056 | New Jersey Resources Corp. | 115,303 | |||||||||
3,764 | Nicor, Inc. | 163,772 |
See Notes to Financial Statements.
35
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1000 Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
34,540 | NiSource, Inc. | $ | 563,002 | ||||||||
12,167 | Northeast Utilities | 338,121 | |||||||||
3,425 | NorthWestern Corp. | 103,503 | |||||||||
26,229 | NRG Energy, Inc.* | 633,955 | |||||||||
7,609 | NSTAR | 278,489 | |||||||||
18,231 | NV Energy, Inc. | 227,705 | |||||||||
6,669 | OGE Energy Corp. | 275,963 | |||||||||
9,010 | ONEOK, Inc. | 442,751 | |||||||||
27,252 | Pepco Holdings, Inc. | 456,198 | |||||||||
29,674 | PG&E Corp. | 1,299,721 | |||||||||
4,723 | Piedmont Natural Gas Co., Inc. | 129,882 | |||||||||
10,712 | Pinnacle West Capital Corp. | 399,986 | |||||||||
10,669 | PNM Resources, Inc. | 144,992 | |||||||||
7,383 | Portland General Electric Co. | 146,774 | |||||||||
28,526 | PPL Corp. | 706,304 | |||||||||
24,572 | Progress Energy, Inc. | 980,914 | |||||||||
33,623 | Public Service Enterprise Group, Inc. | 1,080,307 | |||||||||
7,033 | Questar Corp. | 337,232 | |||||||||
91,009 | RRI Energy, Inc.* | 370,407 | |||||||||
10,042 | SCANA Corp. | 396,358 | |||||||||
14,963 | Sempra Energy | 735,880 | |||||||||
58,841 | Southern Co. | 2,033,545 | |||||||||
3,766 | Southwest Gas Corp. | 117,123 | |||||||||
17,155 | TECO Energy, Inc. | 290,434 | |||||||||
9,253 | UGI Corp. | 254,365 | |||||||||
3,800 | Unisource Energy Corp. | 126,616 | |||||||||
6,825 | Vectren Corp. | 170,693 | |||||||||
9,694 | Westar Energy, Inc. | 229,651 | |||||||||
4,143 | WGL Holdings, Inc. | 148,071 | |||||||||
6,414 | Wisconsin Energy Corp. | 336,799 | |||||||||
34,866 | Xcel Energy, Inc. | 758,336 | |||||||||
35,550,814 | |||||||||||
Total Investments (Cost $650,759,659)—100.0% | 648,379,316 | ||||||||||
Other assets less liabilities—0.0% | 48,673 | ||||||||||
Net Assets—100.0% | $ | 648,427,989 |
Investment Abbreviations:
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
* Non-income producing security.
(~) Affiliated company. The Fund's Adviser is a subsidiary of Invesco Ltd. and therefore, Invesco Ltd. is considered to be affiliated with the Fund. See Note 4.
See Notes to Financial Statements.
36
Schedule of Investments
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.0% | |||||||||||
Consumer Discretionary—18.7% | |||||||||||
67,209 | 1-800-FLOWERS.COM, Inc., Class A* | $ | 192,218 | ||||||||
10,231 | 99 Cents Only Stores* | 158,785 | |||||||||
10,176 | Aeropostale, Inc.* | 295,511 | |||||||||
16,904 | AFC Enterprises, Inc.* | 184,423 | |||||||||
13,195 | AH Belo Corp., Class A* | 112,158 | |||||||||
4,820 | Alloy, Inc.* | 37,355 | |||||||||
6,639 | Ambassadors Group, Inc. | 80,597 | |||||||||
956 | Amcon Distributing Co. | 48,039 | |||||||||
12,489 | American Apparel, Inc.* | 38,341 | |||||||||
18,554 | American Axle & Manufacturing Holdings, Inc.* | 199,641 | |||||||||
19,131 | American Greetings Corp., Class A | 469,857 | |||||||||
2,498 | America's Car-Mart, Inc.* | 63,274 | |||||||||
8,577 | Ameristar Casinos, Inc. | 161,505 | |||||||||
4,622 | Arbitron, Inc. | 142,404 | |||||||||
11,168 | Arctic Cat, Inc.* | 164,728 | |||||||||
15,665 | Audiovox Corp., Class A* | 145,841 | |||||||||
6,239 | Bally Technologies, Inc.* | 287,743 | |||||||||
10,480 | Bebe Stores, Inc. | 86,355 | |||||||||
53,483 | Belo Corp., Class A | 463,698 | |||||||||
4,776 | Benihana, Inc.* | 32,907 | |||||||||
10,738 | Benihana, Inc., Class A* | 73,126 | |||||||||
9,223 | Big 5 Sporting Goods Corp. | 156,330 | |||||||||
362 | Biglari Holdings, Inc.* | 141,632 | |||||||||
4,113 | BJ's Restaurants, Inc.* | 99,247 | |||||||||
267,296 | Blockbuster, Inc., Class B* | 90,881 | |||||||||
445,234 | Blockbuster, Inc., Class A* | 165,850 | |||||||||
788 | Blue Nile, Inc.* | 42,544 | |||||||||
6,868 | Blyth, Inc. | 395,872 | |||||||||
12,565 | Bob Evans Farms, Inc. | 388,635 | |||||||||
24,431 | Bon-Ton Stores, Inc. (The) | 418,259 | |||||||||
12,623 | Books-A-Million, Inc. | 93,410 | |||||||||
167,609 | Borders Group, Inc.* | 425,727 | |||||||||
4,036 | Brink's Home Security Holdings, Inc.* | 169,270 | |||||||||
11,554 | Brookfield Homes Corp.* | 129,520 | |||||||||
24,276 | Brown Shoe Co., Inc. | 456,389 | |||||||||
5,440 | Buckle, Inc. (The) | 196,819 | |||||||||
1,549 | Buffalo Wild Wings, Inc.* | 64,036 | |||||||||
18,942 | Build-A-Bear Workshop, Inc.* | 181,086 | |||||||||
13,623 | Cache, Inc.* | 93,045 | |||||||||
8,542 | California Pizza Kitchen, Inc.* | 175,111 | |||||||||
34,851 | Callaway Golf Co. | 327,251 | |||||||||
616 | Capella Education Co.* | 55,822 | |||||||||
9,136 | Carmike Cinemas, Inc.* | 153,302 | |||||||||
11,035 | Carrols Restaurant Group, Inc.* | 82,652 | |||||||||
5,537 | Carter's, Inc.* | 178,402 | |||||||||
26,131 | Casual Male Retail Group, Inc.* | 106,876 | |||||||||
10,388 | Cato Corp. (The), Class A | 246,715 | |||||||||
1,546 | Cavco Industries, Inc.* | 60,557 | |||||||||
6,547 | CEC Entertainment, Inc.* | 255,660 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
14,151 | Cheesecake Factory, Inc. (The)* | $ | 384,483 | ||||||||
3,910 | Cherokee, Inc. | 79,920 | |||||||||
9,918 | Children's Place Retail Stores, Inc. (The)* | 454,443 | |||||||||
3,377 | Chipotle Mexican Grill, Inc.* | 455,591 | |||||||||
8,356 | Choice Hotels International, Inc. | 303,406 | |||||||||
17,567 | Christopher & Banks Corp. | 171,981 | |||||||||
1,176 | Churchill Downs, Inc. | 45,076 | |||||||||
7,457 | Cinemark Holdings, Inc. | 136,165 | |||||||||
2,325 | Citi Trends, Inc.* | 77,981 | |||||||||
22,960 | CKE Restaurants, Inc. | 283,326 | |||||||||
16,915 | CKX, Inc.* | 99,460 | |||||||||
6,554 | Coinstar, Inc.* | 290,735 | |||||||||
29,064 | Coldwater Creek, Inc.* | 205,773 | |||||||||
3,366 | Columbia Sportswear Co. | 186,948 | |||||||||
31,730 | Conn's, Inc.* | 302,387 | |||||||||
23,672 | Cooper Tire & Rubber Co. | 502,320 | |||||||||
17,782 | Corinthian Colleges, Inc.* | 277,755 | |||||||||
5,139 | CPI Corp. | 136,338 | |||||||||
8,861 | Cracker Barrel Old Country Store, Inc. | 437,468 | |||||||||
19,576 | Crocs, Inc.* | 189,104 | |||||||||
4,304 | CSS Industries, Inc. | 86,166 | |||||||||
4,721 | CTC Media, Inc. | 79,738 | |||||||||
1,426 | Deckers Outdoor Corp.* | 200,467 | |||||||||
50,756 | Denny's Corp.* | 169,017 | |||||||||
4,325 | Destination Maternity Corp.* | 136,670 | |||||||||
4,985 | DeVry, Inc. | 311,014 | |||||||||
6,410 | DineEquity, Inc.* | 263,643 | |||||||||
6,851 | Dolan Media Co.* | 81,458 | |||||||||
3,911 | Dorman Products, Inc.* | 99,144 | |||||||||
18,306 | Dover Downs Gaming & Entertainment, Inc. | 71,943 | |||||||||
14,702 | Dress Barn, Inc. (The)* | 406,951 | |||||||||
5,262 | Drew Industries, Inc.* | 134,970 | |||||||||
13,641 | drugstore.com, Inc.* | 49,926 | |||||||||
10,755 | DSW, Inc., Class A* | 324,801 | |||||||||
2,240 | Einstein Noah Restaurant Group, Inc.* | 29,075 | |||||||||
24,553 | Entercom Communications Corp., Class A* | 357,492 | |||||||||
44,420 | Entravision Communications Corp., Class A* | 142,588 | |||||||||
16,143 | Ethan Allen Interiors, Inc. | 326,089 | |||||||||
19,000 | Finish Line, Inc. (The), Class A | 306,090 | |||||||||
3,788 | Fisher Communications, Inc.* | 56,972 | |||||||||
5,648 | Fossil, Inc.* | 219,707 | |||||||||
22,904 | Fred's, Inc., Class A | 318,137 | |||||||||
1,970 | Fuel Systems Solutions, Inc.* | 61,996 | |||||||||
50,102 | Furniture Brands International, Inc.* | 414,845 | |||||||||
17,072 | Gaylord Entertainment Co.* | 576,180 | |||||||||
13,536 | Genesco, Inc.* | 450,613 | |||||||||
21,017 | Gentex Corp. | 451,655 | |||||||||
4,707 | G-III Apparel Group Ltd.* | 134,620 |
See Notes to Financial Statements.
37
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
3,849 | Global Sources Ltd. (Bermuda)* | $ | 28,213 | ||||||||
82,374 | Gray Television, Inc.* | 308,902 | |||||||||
26,285 | Great Wolf Resorts, Inc.* | 84,375 | |||||||||
3,527 | Guess?, Inc. | 161,783 | |||||||||
5,312 | Gymboree Corp.* | 260,979 | |||||||||
18,083 | Harte-Hanks, Inc. | 260,395 | |||||||||
10,368 | Haverty Furniture Cos., Inc. | 168,998 | |||||||||
2,213 | Hawk Corp., Class A* | 51,209 | |||||||||
6,917 | Helen of Troy Ltd.* | 186,828 | |||||||||
3,190 | hhgregg, Inc.* | 91,330 | |||||||||
5,279 | Hibbett Sports, Inc.* | 145,172 | |||||||||
7,169 | Hillenbrand, Inc. | 176,214 | |||||||||
4,754 | Hooker Furniture Corp. | 74,923 | |||||||||
27,080 | Hot Topic, Inc. | 206,891 | |||||||||
14,861 | HSN, Inc.* | 447,762 | |||||||||
12,544 | Iconix Brand Group, Inc.* | 216,509 | |||||||||
15,710 | International Speedway Corp., Class A | 480,098 | |||||||||
8,200 | Interval Leisure Group, Inc.* | 121,278 | |||||||||
19,419 | Isle of Capri Casinos, Inc.* | 211,473 | |||||||||
3,917 | ITT Educational Services, Inc.* | 396,126 | |||||||||
4,625 | J.Crew Group, Inc.* | 214,924 | |||||||||
68,983 | Jackson Hewitt Tax Service, Inc.* | 116,581 | |||||||||
23,844 | JAKKS Pacific, Inc.* | 364,575 | |||||||||
7,113 | Jo-Ann Stores, Inc.* | 313,826 | |||||||||
9,115 | John Wiley & Sons, Inc., Class A | 385,291 | |||||||||
3,949 | Jos. A. Bank Clothiers, Inc.* | 240,336 | |||||||||
37,556 | Journal Communications, Inc., Class A* | 212,943 | |||||||||
3,213 | K12, Inc.* | 76,052 | |||||||||
11,109 | Kenneth Cole Productions, Inc., Class A* | 138,418 | |||||||||
2,931 | Kirkland's, Inc.* | 65,273 | |||||||||
6,187 | Knology, Inc.* | 81,235 | |||||||||
24,058 | Krispy Kreme Doughnuts, Inc.* | 89,015 | |||||||||
19,569 | K-Swiss, Inc., Class A* | 243,438 | |||||||||
8,397 | Landry's Restaurants, Inc.* | 193,887 | |||||||||
21,439 | La-Z-Boy, Inc.* | 279,565 | |||||||||
13,078 | Leapfrog Enterprises, Inc.* | 89,454 | |||||||||
73,968 | Lee Enterprises, Inc.* | 279,599 | |||||||||
6,255 | Liberty Media Corp. - Capital, Series A* | 276,909 | |||||||||
5,521 | Life Time Fitness, Inc.* | 202,952 | |||||||||
4,743 | Lifetime Brands, Inc.* | 68,773 | |||||||||
25,280 | Lin TV Corp., Class A* | 182,774 | |||||||||
3,309 | Lincoln Educational Services Corp.* | 82,593 | |||||||||
57,516 | Lions Gate Entertainment Corp. (Canada)* | 398,011 | |||||||||
53,075 | Lithia Motors, Inc., Class A* | 423,539 | |||||||||
19,404 | LKQ Corp.* | 408,648 | |||||||||
15,430 | LodgeNet Interactive Corp.* | 101,838 | |||||||||
11,714 | Luby's, Inc.* | 47,793 | |||||||||
1,259 | Lululemon Athletica, Inc.* | 47,364 | |||||||||
2,362 | Lumber Liquidators Holdings, Inc.* | 71,947 | |||||||||
11,873 | M/I Homes, Inc.* | 185,219 | |||||||||
5,753 | Maidenform Brands, Inc.* | 131,283 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
11,121 | Marcus Corp. | $ | 142,905 | ||||||||
3,507 | Marine Products Corp.* | 24,900 | |||||||||
16,031 | MarineMax, Inc.* | 178,746 | |||||||||
4,973 | Martha Stewart Living Omnimedia, Inc., Class A* | 33,220 | |||||||||
6,332 | Matthews International Corp., Class A | 221,620 | |||||||||
91,067 | McClatchy Co. (The), Class A* | 496,315 | |||||||||
9,170 | McCormick & Schmick's Seafood Restaurants, Inc.* | 90,875 | |||||||||
27,792 | Media General, Inc., Class A* | 351,569 | |||||||||
36,053 | Mediacom Communications Corp., Class A* | 238,671 | |||||||||
19,665 | Men's Wearhouse, Inc. (The) | 464,684 | |||||||||
16,284 | Meritage Homes Corp.* | 387,234 | |||||||||
31,190 | Modine Manufacturing Co.* | 436,972 | |||||||||
5,936 | Monarch Casino & Resort, Inc.* | 68,976 | |||||||||
2,899 | Monro Muffler Brake, Inc. | 103,958 | |||||||||
20,088 | Morgans Hotel Group Co.* | 170,145 | |||||||||
1,381 | Morningstar, Inc.* | 64,921 | |||||||||
10,273 | Morton's Restaurant Group, Inc.* | 62,254 | |||||||||
11,462 | Movado Group, Inc.* | 142,243 | |||||||||
17,534 | Multimedia Games, Inc.* | 80,130 | |||||||||
896 | National Presto Industries, Inc. | 100,325 | |||||||||
29,603 | Nautilus, Inc.* | 101,242 | |||||||||
5,310 | Netflix, Inc.* | 524,469 | |||||||||
20,484 | New York & Co., Inc.* | 125,772 | |||||||||
5,661 | NutriSystem, Inc. | 109,427 | |||||||||
18,606 | O'Charley's, Inc.* | 177,687 | |||||||||
17,026 | Orbitz Worldwide, Inc.* | 112,201 | |||||||||
18,528 | Orient-Express Hotels Ltd., Class A* | 252,907 | |||||||||
4,738 | Overstock.com, Inc.* | 87,653 | |||||||||
9,166 | Oxford Industries, Inc. | 197,894 | |||||||||
5,469 | P.F. Chang's China Bistro, Inc. | 238,667 | |||||||||
70,868 | Pacific Sunwear of California, Inc.* | 358,592 | |||||||||
3,785 | Panera Bread Co., Class A* | 295,003 | |||||||||
6,406 | Papa John's International, Inc.* | 175,524 | |||||||||
1,864 | Peet's Coffee & Tea, Inc.* | 73,852 | |||||||||
34,821 | Pep Boys - Manny, Moe & Jack (The) | 436,307 | |||||||||
6,821 | Perry Ellis International, Inc.* | 164,591 | |||||||||
34,333 | Pier 1 Imports, Inc.* | 284,277 | |||||||||
37,422 | Pinnacle Entertainment, Inc.* | 506,320 | |||||||||
15,949 | Playboy Enterprises, Inc., Class B* | 66,667 | |||||||||
15,495 | Pool Corp. | 380,092 | |||||||||
1,801 | Pre-Paid Legal Services, Inc.* | 80,090 | |||||||||
1,621 | Priceline.com, Inc.* | 424,783 | |||||||||
11,060 | PRIMEDIA, Inc. | 38,599 | |||||||||
39,661 | Radio One, Inc., Class D* | 199,891 | |||||||||
9,226 | RC2 Corp.* | 169,482 | |||||||||
27,961 | RCN Corp.* | 410,467 | |||||||||
11,284 | Red Lion Hotels Corp.* | 86,210 | |||||||||
6,590 | Red Robin Gourmet Burgers, Inc.* | 160,862 |
See Notes to Financial Statements.
38
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
27,782 | Retail Ventures, Inc.* | $ | 300,601 | ||||||||
36,063 | Ruby Tuesday, Inc.* | 403,545 | |||||||||
17,658 | Ruth's Hospitality Group, Inc.* | 95,883 | |||||||||
19,531 | Ryland Group, Inc. | 444,916 | |||||||||
21,797 | Sally Beauty Holdings, Inc.* | 208,161 | |||||||||
10,092 | Scholastic Corp. | 272,585 | |||||||||
15,883 | Scientific Games Corp., Class A* | 233,639 | |||||||||
35,089 | Sealy Corp.* | 131,233 | |||||||||
15,608 | Select Comfort Corp.* | 176,683 | |||||||||
5,619 | Shoe Carnival, Inc.* | 155,422 | |||||||||
12,446 | Shuffle Master, Inc.* | 119,482 | |||||||||
2,050 | Shutterfly, Inc.* | 48,236 | |||||||||
34,700 | Sinclair Broadcast Group, Inc., Class A* | 239,083 | |||||||||
10,443 | Skechers U.S.A., Inc., Class A* | 400,489 | |||||||||
5,232 | Skyline Corp. | 121,958 | |||||||||
12,671 | Smith & Wesson Holding Corp.* | 56,386 | |||||||||
24,279 | Sonic Corp.* | 284,307 | |||||||||
11,502 | Sotheby's | 384,167 | |||||||||
17,438 | Spartan Motors, Inc. | 107,592 | |||||||||
6,016 | Speedway Motorsports, Inc. | 97,760 | |||||||||
19,723 | Stage Stores, Inc. | 300,776 | |||||||||
16,520 | Standard Motor Products, Inc. | 176,103 | |||||||||
59,407 | Standard Pacific Corp.* | 380,799 | |||||||||
6,375 | Stanley Furniture Co., Inc.* | 62,921 | |||||||||
21,502 | Stein Mart, Inc.* | 203,839 | |||||||||
2,810 | Steiner Leisure Ltd.* | 131,705 | |||||||||
5,331 | Steinway Musical Instruments, Inc.* | 102,142 | |||||||||
2,715 | Steven Madden Ltd.* | 157,361 | |||||||||
36,389 | Stewart Enterprises, Inc., Class A | 246,717 | |||||||||
8,490 | Stoneridge, Inc.* | 91,607 | |||||||||
949 | Strayer Education, Inc. | 230,721 | |||||||||
15,179 | Superior Industries International, Inc. | 255,918 | |||||||||
2,561 | Syms Corp.* | 23,331 | |||||||||
6,325 | Systemax, Inc. | 146,930 | |||||||||
10,827 | Talbots, Inc. (The)* | 178,104 | |||||||||
6,226 | Tempur-Pedic International, Inc.* | 209,816 | |||||||||
10,363 | Texas Roadhouse, Inc.* | 153,165 | |||||||||
15,263 | Timberland Co. (The), Class A* | 328,154 | |||||||||
16,826 | Town Sports International Holdings, Inc.* | 63,434 | |||||||||
72,393 | TravelCenters of America LLC* | 294,640 | |||||||||
2,152 | True Religion Apparel, Inc.* | 67,250 | |||||||||
20,993 | Tuesday Morning Corp.* | 118,610 | |||||||||
4,900 | Ulta Salon Cosmetics & Fragrance, Inc.* | 113,288 | |||||||||
5,504 | Under Armour, Inc., Class A* | 185,760 | |||||||||
39,834 | Unifi, Inc.* | 152,564 | |||||||||
4,646 | UniFirst Corp. | 227,050 | |||||||||
3,111 | Universal Electronics, Inc.* | 66,015 | |||||||||
2,674 | Universal Technical Institute, Inc.* | 64,069 | |||||||||
10,639 | Vail Resorts, Inc.* | 485,564 | |||||||||
11,477 | Valassis Communications, Inc.* | 375,183 | |||||||||
15,947 | ValueVision Media, Inc., Class A* | 49,117 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
1,455 | Vitamin Shoppe, Inc.* | $ | 36,113 | ||||||||
4,206 | Volcom, Inc.* | 100,271 | |||||||||
10,599 | Warnaco Group, Inc. (The)* | 507,056 | |||||||||
7,958 | Weight Watchers International, Inc. | 211,444 | |||||||||
10,572 | West Marine, Inc.* | 126,547 | |||||||||
27,561 | Wet Seal, Inc. (The), Class A* | 130,364 | |||||||||
3,123 | Weyco Group, Inc. | 76,326 | |||||||||
11,004 | Winnebago Industries, Inc.* | 182,997 | |||||||||
7,037 | WMS Industries, Inc.* | 351,991 | |||||||||
10,489 | Wolverine World Wide, Inc. | 321,068 | |||||||||
4,790 | Wonder Auto Technology, Inc.* | 55,420 | |||||||||
20,135 | World Wrestling Entertainment, Inc., Class A | 367,464 | |||||||||
75,342 | Zale Corp.* | 245,615 | |||||||||
4,784 | Zumiez, Inc.* | 88,791 | |||||||||
52,991,985 | |||||||||||
Consumer Staples—2.9% | |||||||||||
1,576 | Alico, Inc. | 42,048 | |||||||||
58,468 | Alliance One International, Inc.* | 297,602 | |||||||||
3,209 | American Italian Pasta Co., Class A* | 125,889 | |||||||||
29,101 | American Oriental Bioengineering, Inc. (China)* | 117,859 | |||||||||
9,538 | Andersons, Inc. (The) | 344,703 | |||||||||
785 | Arden Group, Inc., Class A | 79,678 | |||||||||
1,737 | Boston Beer Co., Inc., Class A* | 99,026 | |||||||||
3,456 | Calavo Growers, Inc. | 59,927 | |||||||||
4,502 | Cal-Maine Foods, Inc. | 150,277 | |||||||||
3,501 | Cellu Tissue Holdings, Inc.* | 36,480 | |||||||||
10,741 | Central European Distribution Corp.* | 372,176 | |||||||||
10,547 | Central Garden & Pet Co.* | 118,443 | |||||||||
27,734 | Central Garden & Pet Co., Class A* | 286,492 | |||||||||
3,120 | Coca-Cola Bottling Co. Consolidated | 171,850 | |||||||||
18,139 | Darling International, Inc.* | 172,139 | |||||||||
3,910 | Diamond Foods, Inc. | 166,996 | |||||||||
13,162 | Elizabeth Arden, Inc.* | 239,680 | |||||||||
2,011 | Farmer Bros. Co. | 37,626 | |||||||||
2,248 | Green Mountain Coffee Roasters, Inc.* | 163,340 | |||||||||
17,826 | Hain Celestial Group, Inc. (The)* | 352,598 | |||||||||
4,342 | Hansen Natural Corp.* | 191,395 | |||||||||
23,449 | Heckmann Corp.* | 140,694 | |||||||||
9,724 | Herbalife Ltd. (Cayman Islands) | 469,183 | |||||||||
10,215 | Imperial Sugar Co. | 163,746 | |||||||||
8,952 | Ingles Markets, Inc., Class A | 143,501 | |||||||||
2,705 | Inter Parfums, Inc. | 46,742 | |||||||||
2,724 | J & J Snack Foods Corp. | 126,911 | |||||||||
4,767 | Lancaster Colony Corp. | 262,042 | |||||||||
9,442 | Lance, Inc. | 218,866 | |||||||||
12,113 | Mannatech, Inc. | 46,756 | |||||||||
3,990 | Mead Johnson Nutrition Co., Class A | 205,924 | |||||||||
5,456 | MGP Ingredients, Inc.* | 42,393 | |||||||||
3,116 | National Beverage Corp. | 36,146 |
See Notes to Financial Statements.
39
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
8,811 | Nu Skin Enterprises, Inc., Class A | $ | 264,859 | ||||||||
4,244 | Nutraceutical International Corp.* | 65,655 | |||||||||
13,429 | Omega Protein Corp.* | 71,845 | |||||||||
11,939 | Prestige Brands Holdings, Inc.* | 116,286 | |||||||||
7,706 | PriceSmart, Inc. | 191,725 | |||||||||
25,549 | Reddy Ice Holdings, Inc.* | 108,328 | |||||||||
1,182 | Revlon, Inc., Class A* | 20,709 | |||||||||
5,723 | Sanderson Farms, Inc. | 324,322 | |||||||||
17,673 | Smart Balance, Inc.* | 117,525 | |||||||||
19,364 | Spartan Stores, Inc. | 292,203 | |||||||||
9,549 | Susser Holdings Corp.* | 102,843 | |||||||||
6,374 | Tootsie Roll Industries, Inc. | 169,548 | |||||||||
6,725 | TreeHouse Foods, Inc.* | 284,400 | |||||||||
2,721 | USANA Health Sciences, Inc.* | 98,636 | |||||||||
13,629 | Vector Group Ltd. | 223,379 | |||||||||
3,068 | Village Super Market, Inc., Class A | 82,560 | |||||||||
4,069 | WD-40 Co. | 143,351 | |||||||||
4,365 | Zhongpin, Inc.* | 55,348 | |||||||||
8,262,650 | |||||||||||
Energy—5.9% | |||||||||||
1,433 | Adams Resources & Energy, Inc. | 27,098 | |||||||||
34,182 | Allis-Chalmers Energy, Inc.* | 137,753 | |||||||||
1,273 | Apco Oil And Gas International, Inc. (Cayman Islands) | 35,568 | |||||||||
5,516 | Approach Resources, Inc.* | 49,368 | |||||||||
3,093 | Arena Resources, Inc.* | 114,224 | |||||||||
10,151 | Atlas Energy, Inc. | 366,248 | |||||||||
9,304 | ATP Oil & Gas Corp.* | 169,891 | |||||||||
11,168 | Atwood Oceanics, Inc.* | 406,627 | |||||||||
32,803 | Basic Energy Services, Inc.* | 334,919 | |||||||||
11,807 | Berry Petroleum Co., Class A | 382,193 | |||||||||
5,286 | Bill Barrett Corp.* | 180,147 | |||||||||
4,194 | Brigham Exploration Co.* | 81,825 | |||||||||
10,523 | Bristow Group, Inc.* | 407,345 | |||||||||
16,552 | Bronco Drilling Co., Inc.* | 79,118 | |||||||||
46,926 | Cal Dive International, Inc.* | 307,834 | |||||||||
2,198 | CARBO Ceramics, Inc. | 161,003 | |||||||||
5,360 | Carrizo Oil & Gas, Inc.* | 117,598 | |||||||||
2,734 | Clayton Williams Energy, Inc.* | 127,022 | |||||||||
22,505 | Cloud Peak Energy, Inc.* | 360,080 | |||||||||
1,864 | Cobalt International Energy, Inc.* | 21,455 | |||||||||
10,695 | Comstock Resources, Inc.* | 342,882 | |||||||||
7,296 | Concho Resources, Inc.* | 414,559 | |||||||||
1,839 | Contango Oil & Gas Co.* | 100,961 | |||||||||
2,516 | Continental Resources, Inc.* | 123,686 | |||||||||
17,301 | Copano Energy LLC | 453,286 | |||||||||
1,613 | Core Laboratories NV (Netherlands) | 241,773 | |||||||||
13,520 | CVR Energy, Inc.* | 114,785 | |||||||||
3,344 | Dawson Geophysical Co.* | 97,946 | |||||||||
12,429 | Delek US Holdings, Inc. | 87,127 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
69,603 | Delta Petroleum Corp.* | $ | 107,189 | ||||||||
42,343 | DHT Holdings, Inc. | 199,859 | |||||||||
3,023 | Dril-Quip, Inc.* | 175,122 | |||||||||
56,414 | Endeavour International Corp.* | 91,391 | |||||||||
6,366 | Energy XXI Bermuda Ltd. (Bermuda) | 111,469 | |||||||||
15,854 | ENGlobal Corp.* | 56,282 | |||||||||
5,972 | Geokinetics, Inc.* | 52,195 | |||||||||
36,236 | Global Industries Ltd.* | 242,781 | |||||||||
8,185 | GMX Resources, Inc.* | 65,562 | |||||||||
6,584 | Goodrich Petroleum Corp.* | 111,467 | |||||||||
29,623 | Gran Tierra Energy, Inc.* | 179,515 | |||||||||
4,964 | Gulf Island Fabrication, Inc. | 118,987 | |||||||||
11,004 | Gulfmark Offshore, Inc., Class A* | 379,308 | |||||||||
4,399 | Gulfport Energy Corp.* | 54,987 | |||||||||
17,920 | Harvest Natural Resources, Inc.* | 158,234 | |||||||||
100,454 | Hercules Offshore, Inc.* | 397,798 | |||||||||
15,315 | Hornbeck Offshore Services, Inc.* | 374,758 | |||||||||
72,706 | International Coal Group, Inc.* | 383,161 | |||||||||
1,061 | Interoil Corp. (Canada)* | 71,161 | |||||||||
35,418 | ION Geophysical Corp.* | 212,862 | |||||||||
5,013 | James River Coal Co.* | 94,345 | |||||||||
10,839 | Knightsbridge Tankers Ltd. (Bermuda) | 205,291 | |||||||||
2,537 | Lufkin Industries, Inc. | 215,975 | |||||||||
11,498 | Matrix Service Co.* | 122,224 | |||||||||
14,512 | McMoRan Exploration Co.* | 173,273 | |||||||||
192,196 | Meridian Resource Corp. (The)* | 55,756 | |||||||||
36,998 | Newpark Resources, Inc.* | 247,147 | |||||||||
11,905 | Nordic American Tanker Shipping Ltd. (Bermuda) | 371,912 | |||||||||
21,336 | Omega Navigation Enterprises, Inc., Class A (United Kingdom) | 64,008 | |||||||||
33,001 | Pacific Ethanol, Inc.* | 35,311 | |||||||||
70,281 | Parker Drilling Co.* | 388,654 | |||||||||
19,011 | Patriot Coal Corp.* | 374,327 | |||||||||
10,163 | Petroleum Development Corp.* | 237,916 | |||||||||
24,570 | PetroQuest Energy, Inc.* | 145,209 | |||||||||
7,066 | PHI, Inc.* | 146,902 | |||||||||
30,283 | Pioneer Drilling Co.* | 222,277 | |||||||||
697 | PrimeEnergy Corp.* | 15,668 | |||||||||
8,174 | Quicksilver Resources, Inc.* | 113,373 | |||||||||
3,426 | Rex Energy Corp.* | 45,566 | |||||||||
4,612 | Rex Stores Corp.* | 79,142 | |||||||||
13,661 | Rosetta Resources, Inc.* | 340,159 | |||||||||
8,081 | RPC, Inc. | 110,306 | |||||||||
34,748 | SandRidge Energy, Inc.* | 260,957 | |||||||||
13,255 | StealthGas, Inc. (Greece) | 71,709 | |||||||||
23,416 | Stone Energy Corp.* | 381,681 | |||||||||
5,694 | Superior Well Services, Inc.* | 82,563 | |||||||||
11,538 | Swift Energy Co.* | 417,445 | |||||||||
3,409 | T-3 Energy Services, Inc.* | 101,418 |
See Notes to Financial Statements.
40
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
10,070 | Teekay Tankers Ltd., Class A (Marshall Islands) | $ | 128,292 | ||||||||
10,943 | Tesco Corp. (Canada)* | 136,897 | |||||||||
28,683 | TETRA Technologies, Inc.* | 352,514 | |||||||||
13,032 | Trico Marine Services, Inc.* | 42,745 | |||||||||
21,325 | Tsakos Energy Navigation Ltd. (Bermuda) | 312,198 | |||||||||
7,509 | Union Drilling, Inc.* | 49,785 | |||||||||
98,756 | USEC, Inc.* | 592,536 | |||||||||
18,433 | VAALCO Energy, Inc.* | 103,409 | |||||||||
3,870 | Venoco, Inc.* | 57,663 | |||||||||
19,409 | W&T Offshore, Inc. | 183,803 | |||||||||
13,834 | Willbros Group, Inc.* | 173,617 | |||||||||
16,642,382 | |||||||||||
Financials—22.0% | |||||||||||
8,309 | 1st Source Corp. | 158,951 | |||||||||
6,669 | Abington Bancorp, Inc. | 63,422 | |||||||||
9,604 | Acadia Realty Trust REIT | 183,244 | |||||||||
36,591 | Advance America Cash Advance Centers, Inc. | 209,301 | |||||||||
2,848 | Agree Realty Corp. REIT | 72,994 | |||||||||
115 | Alexander's, Inc. REIT* | 36,549 | |||||||||
8,065 | American Campus Communities, Inc. REIT | 227,191 | |||||||||
5,439 | American Capital Agency Corp. REIT | 149,627 | |||||||||
31,515 | American Equity Investment Life Holding Co. | 331,538 | |||||||||
3,499 | American Physicians Capital, Inc. | 117,007 | |||||||||
5,395 | American Safety Insurance Holdings Ltd. (Bermuda)* | 87,291 | |||||||||
6,780 | Ameris Bancorp | 75,461 | |||||||||
6,552 | AMERISAFE, Inc.* | 112,039 | |||||||||
2,579 | Ames National Corp. | 49,336 | |||||||||
4,940 | AmTrust Financial Services, Inc. | 67,332 | |||||||||
68,704 | Anchor Bancorp Wisconsin, Inc.* | 68,704 | |||||||||
34,144 | Anworth Mortgage Asset Corp. REIT | 229,106 | |||||||||
43,593 | Arbor Realty Trust, Inc. REIT* | 177,859 | |||||||||
9,438 | Argo Group International Holdings Ltd. (Bermuda)* | 311,360 | |||||||||
9,695 | Arlington Asset Investment Corp., Class A | 195,451 | |||||||||
3,453 | Arrow Financial Corp. | 95,993 | |||||||||
2,395 | Artio Global Investors, Inc. | 54,798 | |||||||||
64,241 | Ashford Hospitality Trust, Inc. REIT* | 597,441 | |||||||||
4,721 | Asset Acceptance Capital Corp.* | 34,747 | |||||||||
5,491 | Associated Estates Realty Corp. REIT | 77,039 | |||||||||
18,204 | Assured Guaranty Ltd. (Bermuda) | 392,296 | |||||||||
8,233 | Avatar Holdings, Inc.* | 196,275 | |||||||||
3,388 | Baldwin & Lyons, Inc., Class B | 85,005 | |||||||||
1,786 | BancFirst Corp. | 78,834 | |||||||||
21,829 | Banco Latinoamericano de Comercio Exterior SA, Class E (Panama) | 309,099 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
9,003 | Bancorp, Inc.* | $ | 79,857 | ||||||||
11,438 | BancTrust Financial Group, Inc. | 70,801 | |||||||||
11,474 | Bank Mutual Corp. | 81,695 | |||||||||
2,758 | Bank of the Ozarks, Inc. | 106,100 | |||||||||
114,541 | BankAtlantic Bancorp, Inc., Class A | 300,097 | |||||||||
6,956 | BankFinancial Corp. | 67,195 | |||||||||
45,149 | Banner Corp. | 255,995 | |||||||||
5,091 | Beneficial Mutual Bancorp, Inc.* | 50,452 | |||||||||
5,545 | Berkshire Hills Bancorp, Inc. | 116,445 | |||||||||
22,019 | BGC Partners, Inc., Class A | 143,564 | |||||||||
31,124 | Boston Private Financial Holdings, Inc. | 246,813 | |||||||||
15,187 | Broadpoint Gleacher Securities, Inc.* | 65,000 | |||||||||
22,982 | Brookline Bancorp, Inc. | 252,572 | |||||||||
13,293 | Calamos Asset Management, Inc., Class A | 165,498 | |||||||||
2,698 | Camden National Corp. | 96,400 | |||||||||
7,125 | Capital City Bank Group, Inc. | 125,329 | |||||||||
62,281 | Capital Trust, Inc., Class A REIT* | 163,799 | |||||||||
36,783 | Capitol Bancorp Ltd. | 89,751 | |||||||||
3,145 | Capitol Federal Financial | 118,535 | |||||||||
32,178 | CapLease, Inc. REIT | 187,598 | |||||||||
28,631 | Capstead Mortgage Corp. REIT | 324,103 | |||||||||
10,774 | Cardtronics, Inc.* | 150,190 | |||||||||
6,757 | Cash America International, Inc. | 250,414 | |||||||||
32,641 | Cathay General Bancorp | 403,769 | |||||||||
29,597 | Cedar Shopping Centers, Inc. REIT | 235,592 | |||||||||
10,701 | Center Financial Corp.* | 72,125 | |||||||||
84,126 | Central Pacific Financial Corp.* | 183,395 | |||||||||
10,376 | Chemical Financial Corp. | 245,911 | |||||||||
110,882 | Chimera Investment Corp. REIT | 451,290 | |||||||||
5,389 | Citizens & Northern Corp. | 69,895 | |||||||||
548,585 | Citizens Republic Bancorp, Inc.* | 685,731 | |||||||||
9,066 | Citizens, Inc.* | 63,553 | |||||||||
53,002 | City Bank* | 14,841 | |||||||||
5,469 | City Holding Co. | 191,634 | |||||||||
6,638 | CNA Surety Corp.* | 111,319 | |||||||||
12,278 | CoBiz Financial, Inc. | 87,665 | |||||||||
11,852 | Cogdell Spencer, Inc. REIT | 89,838 | |||||||||
11,701 | Cohen & Co., Inc. REIT* | 67,047 | |||||||||
2,097 | Cohen & Steers, Inc. | 56,766 | |||||||||
6,287 | Columbia Banking System, Inc. | 141,332 | |||||||||
10,055 | Community Bank System, Inc. | 248,057 | |||||||||
5,776 | Community Trust Bancorp, Inc. | 173,396 | |||||||||
14,558 | Compass Diversified Holdings | 211,382 | |||||||||
21,896 | CompuCredit Holdings Corp. | 131,157 | |||||||||
42,160 | Cousins Properties, Inc. REIT | 339,810 | |||||||||
5,713 | Cowen Group, Inc., Class A* | 30,850 | |||||||||
15,730 | Crawford & Co., Class B* | 70,785 | |||||||||
1,617 | Credit Acceptance Corp.* | 72,927 | |||||||||
28,528 | CVB Financial Corp. | 314,093 | |||||||||
3,759 | Danvers Bancorp, Inc. | 61,460 | |||||||||
78,325 | DCT Industrial Trust, Inc. REIT | 411,990 |
See Notes to Financial Statements.
41
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
40,832 | DiamondRock Hospitality Co. REIT* | $ | 448,744 | ||||||||
6,929 | Digital Realty Trust, Inc. REIT | 406,732 | |||||||||
11,962 | Dime Community Bancshares | 152,516 | |||||||||
6,640 | Dollar Financial Corp.* | 155,442 | |||||||||
5,688 | Donegal Group, Inc., Class A | 82,078 | |||||||||
3,122 | Duff & Phelps Corp., Class A | 49,015 | |||||||||
5,578 | DuPont Fabros Technology, Inc. REIT | 123,664 | |||||||||
6,684 | EastGroup Properties, Inc. REIT | 273,242 | |||||||||
21,874 | Education Realty Trust, Inc. REIT | 154,649 | |||||||||
814 | EMC Insurance Group, Inc. | 19,748 | |||||||||
17,110 | Employers Holdings, Inc. | 281,973 | |||||||||
5,799 | Encore Capital Group, Inc.* | 133,435 | |||||||||
1,470 | Enstar Group Ltd. (Bermuda)* | 97,196 | |||||||||
6,879 | Enterprise Financial Services Corp. | 72,298 | |||||||||
10,070 | Entertainment Properties Trust REIT | 440,260 | |||||||||
3,282 | Equity Lifestyle Properties, Inc. REIT | 182,184 | |||||||||
11,818 | Equity One, Inc. REIT | 229,387 | |||||||||
2,382 | Evercore Partners, Inc., Class A | 85,371 | |||||||||
27,766 | Extra Space Storage, Inc. REIT | 417,045 | |||||||||
8,502 | EZCORP, Inc., Class A* | 176,076 | |||||||||
56,563 | F.N.B. Corp. | 527,167 | |||||||||
8,257 | FBL Financial Group, Inc., Class A | 213,361 | |||||||||
8,923 | FBR Capital Markets Corp.* | 42,206 | |||||||||
99,789 | FelCor Lodging Trust, Inc. REIT* | 809,289 | |||||||||
3,920 | Financial Institutions, Inc. | 63,034 | |||||||||
7,548 | First Bancorp | 123,108 | |||||||||
3,644 | First Bancorp, Inc. | 57,903 | |||||||||
158,674 | First BanCorp. | 336,389 | |||||||||
34,662 | First Busey Corp. | 175,043 | |||||||||
5,283 | First Cash Financial Services, Inc.* | 116,543 | |||||||||
51,357 | First Commonwealth Financial Corp. | 336,388 | |||||||||
8,910 | First Community Bancshares, Inc. | 148,351 | |||||||||
7,299 | First Defiance Financial Corp. | 98,536 | |||||||||
9,959 | First Financial Bancorp | 190,316 | |||||||||
3,985 | First Financial Bankshares, Inc. | 213,118 | |||||||||
3,278 | First Financial Corp. | 95,554 | |||||||||
10,901 | First Financial Holdings, Inc. | 153,922 | |||||||||
44,838 | First Marblehead Corp. (The)* | 157,381 | |||||||||
24,105 | First Merchants Corp. | 210,678 | |||||||||
5,132 | First Mercury Financial Corp. | 67,281 | |||||||||
24,893 | First Midwest Bancorp, Inc. | 378,374 | |||||||||
14,701 | First Potomac Realty Trust REIT | 238,450 | |||||||||
5,095 | First South Bancorp, Inc. | 71,024 | |||||||||
12,849 | Flagstone Reinsurance Holdings Ltd. (Bermuda) | 143,266 | |||||||||
9,769 | Flushing Financial Corp. | 132,956 | |||||||||
33,319 | Forest City Enterprises, Inc., Class A* | 514,779 | |||||||||
7,483 | Forestar Group, Inc.* | 168,667 | |||||||||
4,017 | FPIC Insurance Group, Inc.* | 109,343 | |||||||||
20,015 | Franklin Street Properties Corp. REIT | 295,021 | |||||||||
15,052 | Frontier Financial Corp.* | 53,736 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
4,405 | GAMCO Investors, Inc., Class A | $ | 202,674 | ||||||||
4,421 | Getty Realty Corp. REIT | 109,508 | |||||||||
18,823 | GFI Group, Inc. | 129,879 | |||||||||
23,470 | Glacier Bancorp, Inc. | 433,960 | |||||||||
3,637 | Gladstone Commercial Corp. REIT | 58,919 | |||||||||
63,187 | Glimcher Realty Trust REIT | 430,303 | |||||||||
3,122 | Government Properties Income Trust REIT | 84,637 | |||||||||
3,274 | Great Southern Bancorp, Inc. | 79,853 | |||||||||
11,245 | Greene Bankshares, Inc.* | 142,137 | |||||||||
2,055 | Greenhill & Co., Inc. | 180,614 | |||||||||
3,701 | Greenlight Capital Re Ltd., Class A (Cayman Islands)* | 94,820 | |||||||||
34,473 | Grubb & Ellis Co.* | 61,362 | |||||||||
9,317 | Hallmark Financial Services, Inc.* | 109,102 | |||||||||
7,606 | Hancock Holding Co. | 310,933 | |||||||||
62,659 | Hanmi Financial Corp.* | 186,724 | |||||||||
9,205 | Harleysville Group, Inc. | 294,744 | |||||||||
6,023 | Hatteras Financial Corp. REIT | 160,633 | |||||||||
19,058 | Healthcare Realty Trust, Inc. REIT | 460,060 | |||||||||
6,690 | Heartland Financial USA, Inc. | 127,846 | |||||||||
45,462 | Hersha Hospitality Trust REIT | 262,316 | |||||||||
9,942 | Hilltop Holdings, Inc.* | 116,620 | |||||||||
3,087 | Home BancShares, Inc. | 86,806 | |||||||||
18,413 | Horace Mann Educators Corp. | 316,888 | |||||||||
4,185 | IBERIABANK Corp. | 257,963 | |||||||||
5,328 | Independent Bank Corp. | 138,208 | |||||||||
6,276 | Infinity Property & Casualty Corp. | 289,512 | |||||||||
35,335 | Inland Real Estate Corp. REIT | 332,856 | |||||||||
4,027 | International Assets Holding Corp.* | 65,117 | |||||||||
20,259 | Investment Technology Group, Inc.* | 351,899 | |||||||||
8,398 | Investors Bancorp, Inc.* | 116,816 | |||||||||
21,428 | Investors Real Estate Trust REIT | 187,066 | |||||||||
1,822 | Kansas City Life Insurance Co. | 61,948 | |||||||||
2,827 | KBW, Inc.* | 84,669 | |||||||||
2,560 | Kearny Financial Corp. | 26,189 | |||||||||
16,878 | Kilroy Realty Corp. REIT | 591,743 | |||||||||
34,103 | Kite Realty Group Trust REIT | 184,838 | |||||||||
25,711 | Knight Capital Group, Inc., Class A* | 399,806 | |||||||||
19,217 | LaBranche & Co., Inc.* | 94,932 | |||||||||
11,126 | Lakeland Bancorp, Inc. | 116,823 | |||||||||
4,637 | Lakeland Financial Corp. | 96,728 | |||||||||
19,267 | LaSalle Hotel Properties REIT | 507,685 | |||||||||
9,931 | Lazard Ltd., Class A (Bermuda) | 383,932 | |||||||||
5,110 | LTC Properties, Inc. REIT | 142,569 | |||||||||
124,568 | Maguire Properties, Inc. REIT* | 460,902 | |||||||||
13,711 | Maiden Holdings Ltd. (Bermuda) | 102,695 | |||||||||
15,679 | MainSource Financial Group, Inc. | 126,843 | |||||||||
4,487 | MarketAxess Holdings, Inc. | 70,536 | |||||||||
15,442 | Max Capital Group Ltd. (Bermuda) | 344,357 | |||||||||
14,564 | MB Financial, Inc. | 356,818 | |||||||||
16,243 | Meadowbrook Insurance Group, Inc. | 128,320 |
See Notes to Financial Statements.
42
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
9,114 | Medallion Financial Corp. | $ | 72,912 | ||||||||
19,822 | Medical Properties Trust, Inc. REIT | 199,211 | |||||||||
26,121 | MGIC Investment Corp.* | 272,442 | |||||||||
7,350 | Mid-America Apartment Communities, Inc. REIT | 406,235 | |||||||||
14,295 | Mission West Properties, Inc. REIT | 103,496 | |||||||||
8,412 | Monmouth Real Estate Investment Corp., Class A REIT | 65,277 | |||||||||
10,090 | Nara Bancorp, Inc.* | 90,810 | |||||||||
1,729 | NASB Financial, Inc. | 42,775 | |||||||||
23,035 | National Financial Partners Corp.* | 354,509 | |||||||||
5,459 | National Health Investors, Inc. REIT | 221,745 | |||||||||
1,423 | National Interstate Corp. | 29,726 | |||||||||
45,980 | National Penn Bancshares, Inc. | 336,574 | |||||||||
1,160 | National Western Life Insurance Co., Class A | 221,722 | |||||||||
4,850 | Navigators Group, Inc. (The)* | 194,631 | |||||||||
11,014 | NBT Bancorp, Inc. | 269,513 | |||||||||
12,407 | Nelnet, Inc., Class A | 247,644 | |||||||||
28,780 | NewAlliance Bancshares, Inc. | 375,003 | |||||||||
20,454 | NewStar Financial, Inc.* | 156,678 | |||||||||
5,640 | Northfield Bancorp, Inc. | 83,246 | |||||||||
86,607 | NorthStar Realty Finance Corp. REIT | 408,785 | |||||||||
28,263 | Northwest Bancshares, Inc. | 353,005 | |||||||||
6,012 | OceanFirst Financial Corp. | 77,314 | |||||||||
20,501 | Ocwen Financial Corp.* | 236,787 | |||||||||
33,347 | Old National Bancorp | 447,183 | |||||||||
12,910 | Old Second Bancorp, Inc. | 73,845 | |||||||||
14,601 | OMEGA Healthcare Investors, Inc. REIT | 292,312 | |||||||||
6,819 | One Liberty Properties, Inc. REIT | 116,264 | |||||||||
5,335 | Oppenheimer Holdings, Inc., Class A | 155,088 | |||||||||
7,162 | optionsXpress Holdings, Inc.* | 127,126 | |||||||||
16,706 | Oriental Financial Group, Inc. | 279,324 | |||||||||
130,196 | Pacific Capital Bancorp* | 226,541 | |||||||||
12,632 | PacWest Bancorp | 303,294 | |||||||||
7,458 | Park National Corp. | 510,873 | |||||||||
13,556 | Parkway Properties, Inc. REIT | 267,053 | |||||||||
8,702 | Penson Worldwide, Inc.* | 81,799 | |||||||||
6,029 | Peoples Bancorp, Inc. | 104,543 | |||||||||
2,700 | Pico Holdings, Inc.* | 95,985 | |||||||||
9,662 | Pinnacle Financial Partners, Inc.* | 147,635 | |||||||||
5,435 | Piper Jaffray Cos.* | 213,922 | |||||||||
18,828 | PMA Capital Corp., Class A* | 129,348 | |||||||||
119,286 | PMI Group, Inc. (The)* | 621,480 | |||||||||
2,467 | Portfolio Recovery Associates, Inc.* | 163,981 | |||||||||
22,863 | Post Properties, Inc. REIT | 588,951 | |||||||||
7,251 | Potlatch Corp. REIT | 271,622 | |||||||||
13,928 | Presidential Life Corp. | 164,072 | |||||||||
15,927 | PrivateBancorp, Inc. | 228,075 | |||||||||
6,522 | Prosperity Bancshares, Inc. | 255,793 | |||||||||
24,648 | Provident Financial Services, Inc. | 324,861 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
14,470 | Provident New York Bancorp | $ | 148,607 | ||||||||
3,616 | PS Business Parks, Inc. REIT | 216,960 | |||||||||
35,873 | Radian Group, Inc. | 509,038 | |||||||||
137,813 | RAIT Financial Trust REIT* | 559,521 | |||||||||
18,229 | Ramco-Gershenson Properties Trust REIT | 227,133 | |||||||||
9,123 | Renasant Corp. | 150,803 | |||||||||
7,254 | Republic Bancorp, Inc., Class A | 175,184 | |||||||||
14,493 | Resource Capital Corp. REIT | 103,045 | |||||||||
3,082 | Rewards Network, Inc.* | 40,128 | |||||||||
3,040 | Riskmetrics Group, Inc.* | 68,218 | |||||||||
5,878 | RLI Corp. | 340,924 | |||||||||
14,028 | S&T Bancorp, Inc. | 337,373 | |||||||||
4,035 | S.Y. Bancorp, Inc. | 95,791 | |||||||||
6,829 | Safety Insurance Group, Inc. | 254,653 | |||||||||
9,862 | Sanders Morris Harris Group, Inc. | 58,876 | |||||||||
12,338 | Sandy Spring Bancorp, Inc. | 215,298 | |||||||||
3,104 | Saul Centers, Inc. REIT | 122,701 | |||||||||
2,619 | SCBT Financial Corp. | 104,210 | |||||||||
13,908 | SeaBright Insurance Holdings, Inc. | 151,319 | |||||||||
37,705 | Seacoast Banking Corp. of Florida | 82,197 | |||||||||
4,638 | Shore Bancshares, Inc. | 65,349 | |||||||||
4,832 | Sierra Bancorp | 60,303 | |||||||||
6,546 | Signature Bank* | 264,327 | |||||||||
4,790 | Simmons First National Corp., Class A | 134,503 | |||||||||
433,659 | South Financial Group, Inc. (The) | 333,917 | |||||||||
3,595 | Southside Bancshares, Inc. | 77,580 | |||||||||
10,977 | Southwest Bancorp, Inc. | 160,923 | |||||||||
9,009 | Sovran Self Storage, Inc. REIT | 332,342 | |||||||||
13,120 | St. Joe Co. (The)* | 433,485 | |||||||||
4,688 | State Auto Financial Corp. | 83,868 | |||||||||
8,954 | StellarOne Corp. | 133,504 | |||||||||
17,284 | Sterling Bancorp | 185,112 | |||||||||
37,652 | Sterling Bancshares, Inc. | 221,394 | |||||||||
106,145 | Sterling Financial Corp.* | 92,389 | |||||||||
16,821 | Stewart Information Services Corp. | 191,423 | |||||||||
3,872 | Stifel Financial Corp.* | 221,982 | |||||||||
120,012 | Strategic Hotels & Resorts, Inc. REIT* | 770,477 | |||||||||
2,835 | Suffolk Bancorp | 88,027 | |||||||||
14,650 | Sun Bancorp, Inc.* | 79,110 | |||||||||
9,549 | Sun Communities, Inc. REIT | 276,157 | |||||||||
45,868 | Sunstone Hotel Investors, Inc. REIT* | 583,900 | |||||||||
22,908 | Superior Bancorp* | 81,094 | |||||||||
14,088 | SWS Group, Inc. | 155,954 | |||||||||
10,358 | Symetra Financial Corp.* | 139,833 | |||||||||
5,431 | Tanger Factory Outlet Centers, Inc. REIT | 225,930 | |||||||||
7,837 | Taubman Centers, Inc. REIT | 339,891 | |||||||||
2,591 | Taylor Capital Group, Inc.* | 35,497 | |||||||||
9,215 | Texas Capital Bancshares, Inc.* | 183,379 | |||||||||
11,389 | TFS Financial Corp. | 161,040 | |||||||||
15,996 | Thomas Weisel Partners Group, Inc.* | 125,569 | |||||||||
2,380 | Tompkins Financial Corp. | 96,676 |
See Notes to Financial Statements.
43
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
5,008 | Tower Group, Inc. | $ | 115,484 | ||||||||
8,781 | Townebank | 140,759 | |||||||||
6,654 | TradeStation Group, Inc.* | 55,627 | |||||||||
5,188 | Tree.com, Inc.* | 47,211 | |||||||||
4,840 | TriCo Bancshares | 92,154 | |||||||||
37,559 | TrustCo Bank Corp. NY | 249,767 | |||||||||
6,748 | UMB Financial Corp. | 284,226 | |||||||||
29,898 | Umpqua Holdings Corp. | 446,676 | |||||||||
7,753 | Union First Market Bankshares Corp. | 130,095 | |||||||||
22,646 | United America Indemnity Ltd., Class A* | 215,137 | |||||||||
16,661 | United Bankshares, Inc. | 483,835 | |||||||||
51,871 | United Community Banks, Inc.* | 302,927 | |||||||||
3,971 | United Financial Bancorp, Inc. | 55,515 | |||||||||
9,867 | United Fire & Casualty Co. | 225,658 | |||||||||
1,836 | Universal Health Realty Income Trust REIT | 60,992 | |||||||||
8,124 | Universal Insurance Holdings, Inc. | 41,026 | |||||||||
5,830 | Univest Corp. of Pennsylvania | 114,093 | |||||||||
1,048 | Urstadt Biddle Properties, Inc. REIT | 15,510 | |||||||||
5,875 | Urstadt Biddle Properties, Inc., Class A REIT | 99,052 | |||||||||
38,426 | U-Store-It Trust REIT | 331,232 | |||||||||
15,436 | Validus Holdings Ltd. | 394,699 | |||||||||
10,347 | Virginia Commerce Bancorp, Inc.* | 73,774 | |||||||||
6,851 | W Holding Co., Inc. (Puerto Rico)* | 36,653 | |||||||||
11,615 | W.P. Carey & Co. LLC | 357,510 | |||||||||
11,093 | Waddell & Reed Financial, Inc., Class A | 411,772 | |||||||||
13,473 | Washington REIT | 423,726 | |||||||||
6,328 | Washington Trust Bancorp, Inc. | 114,600 | |||||||||
14,532 | WesBanco, Inc. | 280,177 | |||||||||
29,108 | West Coast Bancorp | 100,132 | |||||||||
5,406 | Westamerica Bancorp | 317,711 | |||||||||
18,642 | Western Alliance Bancorp* | 162,185 | |||||||||
9,729 | Westfield Financial, Inc. | 88,534 | |||||||||
6,917 | Wilshire Bancorp, Inc. | 75,119 | |||||||||
5,122 | Winthrop Realty Trust REIT | 69,147 | |||||||||
7,587 | Wintrust Financial Corp. | 282,995 | |||||||||
4,373 | World Acceptance Corp.* | 154,279 | |||||||||
2,869 | WSFS Financial Corp. | 120,814 | |||||||||
62,555,177 | |||||||||||
Health Care—7.0% | |||||||||||
1,187 | Abraxis Bioscience, Inc.* | 59,314 | |||||||||
17,835 | Affymetrix, Inc.* | 123,775 | |||||||||
3,692 | Air Methods Corp.* | 122,131 | |||||||||
8,398 | Albany Molecular Research, Inc.* | 67,184 | |||||||||
2,456 | Alexion Pharmaceuticals, Inc.* | 134,785 | |||||||||
5,407 | Align Technology, Inc.* | 91,811 | |||||||||
11,111 | Alkermes, Inc.* | 145,554 | |||||||||
20,328 | Alliance HealthCare Services, Inc.* | 108,958 | |||||||||
27,182 | Allied Healthcare International, Inc.* | 76,381 | |||||||||
5,583 | Allscripts-Misys Healthcare Solutions, Inc.* | 112,609 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
4,038 | Amedisys, Inc.* | $ | 232,508 | ||||||||
4,926 | America Service Group, Inc. | 83,545 | |||||||||
6,082 | American Dental Partners, Inc.* | 78,336 | |||||||||
7,343 | American Medical Systems Holdings, Inc.* | 131,587 | |||||||||
22,456 | AMN Healthcare Services, Inc.* | 205,248 | |||||||||
13,763 | AmSurg Corp., Class A* | 285,169 | |||||||||
2,166 | Analogic Corp. | 103,578 | |||||||||
5,798 | Angiodynamics, Inc.* | 92,768 | |||||||||
3,205 | Assisted Living Concepts, Inc., Class A* | 112,496 | |||||||||
3,688 | Bio-Reference Labs, Inc.* | 86,299 | |||||||||
20,172 | BioScrip, Inc.* | 180,338 | |||||||||
5,969 | Bruker Corp.* | 91,266 | |||||||||
55,184 | Cambrex Corp.* | 242,258 | |||||||||
3,019 | Cantel Medical Corp. | 60,259 | |||||||||
6,825 | Capital Senior Living Corp.* | 35,900 | |||||||||
3,880 | Caraco Pharmaceutical Laboratories Ltd.* | 25,026 | |||||||||
6,884 | Catalyst Health Solutions, Inc.* | 291,262 | |||||||||
15,133 | Celera Corp.* | 113,044 | |||||||||
4,022 | Chemed Corp. | 221,250 | |||||||||
940 | Computer Programs & Systems, Inc. | 42,356 | |||||||||
11,164 | CONMED Corp.* | 248,287 | |||||||||
9,883 | Cooper Cos., Inc. (The) | 384,350 | |||||||||
1,783 | CorVel Corp.* | 59,374 | |||||||||
15,306 | Cross Country Healthcare, Inc.* | 153,366 | |||||||||
5,854 | Cubist Pharmaceuticals, Inc.* | 131,247 | |||||||||
1,897 | Dionex Corp.* | 154,738 | |||||||||
7,821 | Eclipsys Corp.* | 161,738 | |||||||||
4,820 | Emdeon, Inc., Class A* | 78,903 | |||||||||
1,056 | Emergent Biosolutions, Inc.* | 17,192 | |||||||||
7,361 | Emeritus Corp.* | 164,886 | |||||||||
1,642 | Ensign Group, Inc. (The) | 28,505 | |||||||||
5,594 | Enzon Pharmaceuticals, Inc.* | 59,185 | |||||||||
11,822 | eResearchTechnology, Inc.* | 87,128 | |||||||||
5,994 | ev3, Inc.* | 114,665 | |||||||||
38,449 | Five Star Quality Care, Inc.* | 113,809 | |||||||||
6,851 | Gen-Probe, Inc.* | 324,669 | |||||||||
9,433 | Gentiva Health Services, Inc.* | 270,538 | |||||||||
6,940 | Greatbatch, Inc.* | 155,040 | |||||||||
4,098 | Haemonetics Corp.* | 237,110 | |||||||||
7,022 | Hanger Orthopedic Group, Inc.* | 130,890 | |||||||||
25,078 | HealthTronics, Inc.* | 89,027 | |||||||||
12,388 | Healthways, Inc.* | 201,801 | |||||||||
1,364 | HMS Holdings Corp.* | 72,974 | |||||||||
2,192 | ICU Medical, Inc.* | 78,057 | |||||||||
5,738 | IDEXX Laboratories, Inc.* | 379,511 | |||||||||
7,079 | Illumina, Inc.* | 296,398 | |||||||||
8,711 | Immucor, Inc.* | 186,503 | |||||||||
3,043 | Integra LifeSciences Holdings Corp.* | 138,244 | |||||||||
10,900 | Invacare Corp. | 288,087 | |||||||||
14,808 | inVentiv Health, Inc.* | 341,028 | |||||||||
6,513 | Kendle International, Inc.* | 107,790 |
See Notes to Financial Statements.
44
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
62,904 | KV Pharmaceutical Co., Class A* | $ | 97,501 | ||||||||
1,611 | Landauer, Inc. | 109,790 | |||||||||
8,366 | LCA-Vision, Inc.* | 70,525 | |||||||||
2,137 | LHC Group, Inc.* | 72,872 | |||||||||
3,728 | Luminex Corp.* | 60,617 | |||||||||
9,864 | Martek Biosciences Corp.* | 217,304 | |||||||||
3,286 | Masimo Corp.* | 76,925 | |||||||||
4,147 | MedAssets, Inc.* | 94,676 | |||||||||
20,494 | MedCath Corp.* | 203,710 | |||||||||
5,059 | Medical Action Industries, Inc.* | 60,050 | |||||||||
7,864 | Medicines Co. (The)* | 57,722 | |||||||||
8,042 | Medicis Pharmaceutical Corp., Class A | 204,106 | |||||||||
4,123 | MedQuist, Inc. | 38,385 | |||||||||
3,920 | Meridian Bioscience, Inc. | 78,361 | |||||||||
5,431 | Merit Medical Systems, Inc.* | 87,819 | |||||||||
7,499 | Molina Healthcare, Inc.* | 218,746 | |||||||||
3,396 | MWI Veterinary Supply, Inc.* | 142,462 | |||||||||
4,958 | Myriad Genetics, Inc.* | 119,042 | |||||||||
3,221 | National Healthcare Corp. | 113,895 | |||||||||
4,759 | Natus Medical, Inc.* | 81,093 | |||||||||
4,946 | Odyssey HealthCare, Inc.* | 103,025 | |||||||||
5,699 | Omnicell, Inc.* | 76,082 | |||||||||
2,152 | Onyx Pharmaceuticals, Inc.* | 62,128 | |||||||||
3,719 | Orthofix International NV (Netherlands)* | 127,153 | |||||||||
3,974 | OSI Pharmaceuticals, Inc.* | 233,155 | |||||||||
7,345 | Par Pharmaceutical Cos., Inc.* | 199,343 | |||||||||
12,233 | PAREXEL International Corp.* | 288,454 | |||||||||
36,165 | PDL BioPharma, Inc. | 210,480 | |||||||||
8,353 | Perrigo Co. | 509,784 | |||||||||
12,514 | PharMerica Corp.* | 241,520 | |||||||||
6,464 | Phase Forward, Inc.* | 108,660 | |||||||||
4,400 | Providence Service Corp. (The)* | 73,084 | |||||||||
15,426 | PSS World Medical, Inc.* | 361,431 | |||||||||
13,830 | Psychiatric Solutions, Inc.* | 444,911 | |||||||||
1,917 | Quality Systems, Inc. | 122,707 | |||||||||
5,253 | RehabCare Group, Inc.* | 149,816 | |||||||||
22,638 | Res-Care, Inc.* | 263,506 | |||||||||
5,406 | ResMed, Inc.* | 369,933 | |||||||||
19,037 | RTI Biologics, Inc.* | 72,912 | |||||||||
2,615 | Salix Pharmaceuticals Ltd.* | 105,123 | |||||||||
4,759 | Select Medical Holdings Corp.* | 41,356 | |||||||||
5,901 | Sirona Dental Systems, Inc.* | 246,013 | |||||||||
25,188 | Skilled Healthcare Group, Inc., Class A* | 168,508 | |||||||||
2,435 | SonoSite, Inc.* | 81,621 | |||||||||
10,590 | STERIS Corp. | 352,435 | |||||||||
29,484 | Sun Healthcare Group, Inc.* | 263,587 | |||||||||
84,590 | Sunrise Senior Living, Inc.* | 470,320 | |||||||||
3,643 | SurModics, Inc.* | 67,760 | |||||||||
9,991 | Symmetry Medical, Inc.* | 115,496 | |||||||||
6,931 | Syneron Medical Ltd. (Israel)* | 79,707 | |||||||||
2,637 | Team Health Holdings, Inc.* | 41,454 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
2,441 | Techne Corp. | $ | 161,716 | ||||||||
4,553 | Thoratec Corp.* | 203,018 | |||||||||
16,787 | TomoTherapy, Inc.* | 65,301 | |||||||||
17,970 | Triple-S Management Corp., Class B* | 327,054 | |||||||||
2,088 | United Therapeutics Corp.* | 118,786 | |||||||||
5,888 | Valeant Pharmaceuticals International* | 264,960 | |||||||||
5,592 | Varian, Inc.* | 289,610 | |||||||||
15,902 | VCA Antech, Inc.* | 452,571 | |||||||||
15,229 | ViroPharma, Inc.* | 193,713 | |||||||||
2,061 | Volcano Corp.* | 49,505 | |||||||||
6,782 | West Pharmaceutical Services, Inc. | 283,827 | |||||||||
4,616 | Wright Medical Group, Inc.* | 86,689 | |||||||||
4,193 | Zoll Medical Corp.* | 128,096 | |||||||||
19,893,946 | |||||||||||
Industrials—19.1% | |||||||||||
2,138 | AAON, Inc. | 51,611 | |||||||||
14,221 | AAR Corp.* | 346,708 | |||||||||
39,853 | ACCO Brands Corp.* | 363,858 | |||||||||
13,007 | Aceto Corp. | 86,757 | |||||||||
17,371 | Actuant Corp., Class A | 398,317 | |||||||||
12,173 | Administaff, Inc. | 269,510 | |||||||||
2,090 | Advisory Board Co. (The)* | 68,824 | |||||||||
4,062 | Aegean Marine Petroleum Network, Inc. (Greece) | 106,587 | |||||||||
2,423 | Aerovironment, Inc.* | 63,434 | |||||||||
49,391 | Air Transport Services Group, Inc.* | 271,650 | |||||||||
33,052 | Aircastle Ltd. (Bermuda) | 396,955 | |||||||||
83,623 | AirTran Holdings, Inc.* | 441,529 | |||||||||
3,707 | Alamo Group, Inc. | 87,337 | |||||||||
1,454 | Allegiant Travel Co.* | 74,779 | |||||||||
10,171 | Altra Holdings, Inc.* | 154,192 | |||||||||
2,456 | American Commercial Lines, Inc.* | 50,102 | |||||||||
6,326 | American Railcar Industries, Inc. | 103,430 | |||||||||
21,702 | American Reprographics Co.* | 216,803 | |||||||||
875 | American Science & Engineering, Inc. | 65,756 | |||||||||
5,409 | American Woodmark Corp. | 125,002 | |||||||||
2,605 | Ameron International Corp. | 180,761 | |||||||||
2,443 | Ampco-Pittsburgh Corp. | 62,810 | |||||||||
11,911 | Apogee Enterprises, Inc. | 163,657 | |||||||||
16,301 | Applied Industrial Technologies, Inc. | 501,745 | |||||||||
3,547 | Applied Signal Technology, Inc. | 66,293 | |||||||||
3,712 | Argon ST, Inc.* | 96,512 | |||||||||
12,417 | Arkansas Best Corp. | 378,222 | |||||||||
8,769 | Astec Industries, Inc.* | 290,429 | |||||||||
6,153 | ATC Technology Corp.* | 125,767 | |||||||||
8,753 | Atlas Air Worldwide Holdings, Inc.* | 483,778 | |||||||||
3,001 | AZZ, Inc. | 121,901 | |||||||||
2,176 | Badger Meter, Inc. | 89,999 | |||||||||
12,269 | Baldor Electric Co. | 471,252 | |||||||||
16,061 | Barnes Group, Inc. | 334,069 |
See Notes to Financial Statements.
45
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
3,152 | Barrett Business Services, Inc. | $ | 48,541 | ||||||||
18,329 | Beacon Roofing Supply, Inc.* | 406,904 | |||||||||
15,441 | Belden, Inc. | 424,010 | |||||||||
12,191 | Blount International, Inc.* | 136,783 | |||||||||
13,355 | Bowne & Co., Inc. | 149,309 | |||||||||
15,206 | Brady Corp., Class A | 522,478 | |||||||||
5,638 | Broadwind Energy, Inc.* | 22,326 | |||||||||
5,384 | Bucyrus International, Inc. | 339,246 | |||||||||
38,830 | Builders FirstSource, Inc.* | 147,942 | |||||||||
3,698 | Canadian Solar, Inc. (Canada)* | 64,049 | |||||||||
4,946 | Cascade Corp. | 172,418 | |||||||||
18,765 | Casella Waste Systems, Inc., Class A* | 96,827 | |||||||||
24,100 | CBIZ, Inc.* | 168,941 | |||||||||
11,050 | CDI Corp. | 192,602 | |||||||||
9,539 | Celadon Group, Inc.* | 142,417 | |||||||||
36,214 | Cenveo, Inc.* | 310,354 | |||||||||
15,371 | Ceradyne, Inc.* | 341,236 | |||||||||
9,415 | Chart Industries, Inc.* | 216,451 | |||||||||
19,885 | China BAK Battery, Inc.* | 39,969 | |||||||||
3,368 | CIRCOR International, Inc. | 116,061 | |||||||||
9,183 | CLARCOR, Inc. | 347,301 | |||||||||
4,359 | Clean Harbors, Inc.* | 276,491 | |||||||||
6,610 | Colfax Corp.* | 86,261 | |||||||||
10,083 | Columbus McKinnon Corp.* | 181,796 | |||||||||
14,244 | Comfort Systems USA, Inc. | 200,556 | |||||||||
30,023 | Commercial Vehicle Group, Inc.* | 281,616 | |||||||||
5,406 | Consolidated Graphics, Inc.* | 226,565 | |||||||||
4,660 | Copa Holdings SA, Class A (Panama) | 264,129 | |||||||||
9,199 | Copart, Inc.* | 328,312 | |||||||||
6,060 | Cornell Cos., Inc.* | 166,650 | |||||||||
10,625 | Corporate Executive Board Co. (The) | 291,763 | |||||||||
2,432 | CoStar Group, Inc.* | 106,886 | |||||||||
6,232 | Courier Corp. | 107,128 | |||||||||
4,401 | CRA International, Inc.* | 102,235 | |||||||||
3,902 | Cubic Corp. | 145,584 | |||||||||
11,482 | Curtiss-Wright Corp. | 409,563 | |||||||||
13,307 | Danaos Corp. (Greece)* | 67,200 | |||||||||
7,048 | Diamond Management & Technology Consultants, Inc. | 57,230 | |||||||||
17,472 | Diana Shipping, Inc. (Greece)* | 267,671 | |||||||||
70,433 | DryShips, Inc. (Greece)* | 408,511 | |||||||||
4,357 | Ducommun, Inc. | 99,732 | |||||||||
5,845 | DXP Enterprises, Inc.* | 96,969 | |||||||||
30,239 | Dycom Industries, Inc.* | 321,138 | |||||||||
4,503 | Dynamex, Inc.* | 79,658 | |||||||||
36,552 | Eagle Bulk Shipping, Inc.* | 211,636 | |||||||||
9,199 | Encore Wire Corp. | 204,310 | |||||||||
21,921 | Energy Conversion Devices, Inc.* | 156,078 | |||||||||
31,824 | EnergySolutions, Inc. | 230,724 | |||||||||
17,116 | EnerSys* | 442,962 | |||||||||
11,354 | Ennis, Inc. | 209,935 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
8,124 | EnPro Industries, Inc.* | $ | 256,556 | ||||||||
6,335 | ESCO Technologies, Inc. | 195,435 | |||||||||
23,962 | Euroseas Ltd. | 96,567 | |||||||||
75,226 | Evergreen Solar, Inc.* | 84,253 | |||||||||
28,742 | Excel Maritime Carriers Ltd. (Liberia)* | 204,643 | |||||||||
2,704 | Exponent, Inc.* | 80,606 | |||||||||
44,628 | ExpressJet Holdings, Inc.* | 178,512 | |||||||||
27,451 | Federal Signal Corp. | 221,255 | |||||||||
22,067 | Force Protection, Inc.* | 118,058 | |||||||||
5,285 | Forward Air Corp. | 148,086 | |||||||||
9,290 | Franklin Covey Co.* | 73,205 | |||||||||
4,471 | Franklin Electric Co., Inc. | 156,440 | |||||||||
6,865 | FreightCar America, Inc. | 196,476 | |||||||||
11,110 | FTI Consulting, Inc.* | 456,954 | |||||||||
14,914 | Furmanite Corp.* | 76,061 | |||||||||
5,244 | Fushi Copperweld, Inc.* | 57,999 | |||||||||
8,243 | G&K Services, Inc., Class A | 226,600 | |||||||||
15,277 | Genco Shipping & Trading Ltd.* | 353,815 | |||||||||
8,304 | Genesee & Wyoming, Inc., Class A* | 324,686 | |||||||||
13,077 | Geo Group, Inc. (The)* | 276,971 | |||||||||
3,883 | GeoEye, Inc.* | 110,666 | |||||||||
16,455 | Gibraltar Industries, Inc.* | 247,154 | |||||||||
14,066 | Global Ship Lease, Inc., Class A* | 46,418 | |||||||||
3,746 | Gorman-Rupp Co. (The) | 104,476 | |||||||||
7,797 | GP Strategies Corp.* | 62,922 | |||||||||
12,199 | Graco, Inc. | 423,061 | |||||||||
27,061 | GrafTech International Ltd.* | 456,248 | |||||||||
17,131 | Great Lakes Dredge & Dock Corp. | 92,850 | |||||||||
20,303 | Greenbrier Cos., Inc.* | 330,533 | |||||||||
20,859 | Griffon Corp.* | 294,112 | |||||||||
24,236 | H&E Equipment Services, Inc.* | 286,227 | |||||||||
1,182 | Harbin Electric, Inc.* | 25,898 | |||||||||
8,078 | Hardinge, Inc. | 80,780 | |||||||||
15,358 | Hawaiian Holdings, Inc.* | 109,042 | |||||||||
7,346 | Healthcare Services Group, Inc. | 157,866 | |||||||||
15,671 | Heartland Express, Inc. | 259,198 | |||||||||
1,428 | HEICO Corp. | 61,504 | |||||||||
2,862 | HEICO Corp., Class A | 95,991 | |||||||||
4,650 | Heidrick & Struggles International, Inc. | 122,807 | |||||||||
4,220 | Herley Industries, Inc.* | 61,823 | |||||||||
17,445 | Herman Miller, Inc. | 370,183 | |||||||||
30,807 | Hexcel Corp.* | 499,073 | |||||||||
7,366 | Hill International, Inc.* | 47,290 | |||||||||
39,900 | Horizon Lines, Inc., Class A | 218,253 | |||||||||
4,875 | Houston Wire & Cable Co. | 64,106 | |||||||||
11,310 | Hub Group, Inc., Class A* | 362,033 | |||||||||
13,784 | Hudson Highland Group, Inc.* | 77,328 | |||||||||
3,212 | Hurco Cos., Inc.* | 62,506 | |||||||||
4,845 | Huron Consulting Group, Inc.* | 113,470 | |||||||||
3,564 | ICF International, Inc.* | 82,542 | |||||||||
5,263 | IHS, Inc., Class A* | 266,676 |
See Notes to Financial Statements.
46
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
4,593 | II-VI, Inc.* | $ | 164,705 | ||||||||
7,609 | Innerworkings, Inc.* | 45,502 | |||||||||
6,362 | Insituform Technologies, Inc., Class A* | 152,497 | |||||||||
8,024 | Insteel Industries, Inc. | 98,374 | |||||||||
16,799 | Integrated Electrical Services, Inc.* | 104,658 | |||||||||
21,074 | Interface, Inc., Class A | 275,648 | |||||||||
11,114 | Interline Brands, Inc.* | 231,282 | |||||||||
2,455 | International Shipholding Corp. | 74,485 | |||||||||
4,591 | John Bean Technologies Corp. | 84,337 | |||||||||
6,771 | Kadant, Inc.* | 135,488 | |||||||||
8,171 | Kaman Corp. | 223,967 | |||||||||
3,395 | KAR Auction Services, Inc.* | 52,826 | |||||||||
7,100 | Kaydon Corp. | 295,573 | |||||||||
13,858 | Kforce, Inc.* | 192,488 | |||||||||
1,857 | KHD Humboldt Wedag International AG (Germany) | 16,173 | |||||||||
23,254 | Kimball International, Inc., Class B | 186,962 | |||||||||
13,164 | Kirby Corp.* | 553,941 | |||||||||
9,235 | Knight Transportation, Inc. | 196,613 | |||||||||
17,803 | Knoll, Inc. | 248,886 | |||||||||
12,409 | Korn/Ferry International* | 201,150 | |||||||||
3,911 | Labarge, Inc.* | 48,340 | |||||||||
6,722 | Ladish Co., Inc.* | 184,788 | |||||||||
8,815 | Landstar System, Inc. | 389,799 | |||||||||
3,325 | Lawson Products, Inc. | 54,031 | |||||||||
7,719 | Layne Christensen Co.* | 211,346 | |||||||||
3,749 | LB Foster Co., Class A* | 110,970 | |||||||||
2,235 | Lindsay Corp. | 84,997 | |||||||||
3,153 | LMI Aerospace, Inc.* | 54,421 | |||||||||
14,676 | LSI Industries, Inc. | 103,172 | |||||||||
10,505 | Lydall, Inc.* | 84,670 | |||||||||
7,095 | M&F Worldwide Corp.* | 217,533 | |||||||||
27,022 | Macquarie Infrastructure Co. LLC* | 439,108 | |||||||||
6,519 | Marten Transport Ltd.* | 142,440 | |||||||||
13,166 | MasTec, Inc.* | 164,707 | |||||||||
7,218 | McGrath Rentcorp | 187,596 | |||||||||
13,900 | Metalico, Inc.* | 91,740 | |||||||||
3,587 | Michael Baker Corp.* | 126,765 | |||||||||
2,411 | Middleby Corp. (The)* | 147,360 | |||||||||
6,766 | Miller Industries, Inc. | 96,754 | |||||||||
8,404 | Mine Safety Appliances Co. | 246,994 | |||||||||
15,627 | Mobile Mini, Inc.* | 259,721 | |||||||||
18,992 | Mueller Industries, Inc. | 563,113 | |||||||||
70,129 | Mueller Water Products, Inc., Class A | 392,722 | |||||||||
4,365 | MYR Group, Inc.* | 78,264 | |||||||||
8,223 | NACCO Industries, Inc., Class A | 714,908 | |||||||||
18,419 | Navigant Consulting, Inc.* | 237,237 | |||||||||
31,491 | Navios Maritime Holdings, Inc. (Greece) | 218,548 | |||||||||
133,206 | NCI Building Systems, Inc.* | 1,835,579 | |||||||||
3,377 | Nordson Corp. | 242,536 | |||||||||
5,260 | Northwest Pipe Co.* | 126,871 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
111,554 | Oceanfreight, Inc. (United Kingdom)* | $ | 82,550 | ||||||||
12,164 | Old Dominion Freight Line, Inc.* | 436,444 | |||||||||
15,358 | On Assignment, Inc.* | 107,967 | |||||||||
12,934 | Orbital Sciences Corp.* | 237,727 | |||||||||
3,235 | Orion Marine Group, Inc.* | 61,336 | |||||||||
18,686 | Otter Tail Corp. | 415,203 | |||||||||
47,218 | Pacer International, Inc.* | 313,528 | |||||||||
16,370 | Paragon Shipping, Inc., Class A | 78,085 | |||||||||
9,102 | Park-Ohio Holdings Corp.* | 117,143 | |||||||||
334 | Patriot Transportation Holding, Inc.* | 28,036 | |||||||||
10,945 | Pike Electric Corp.* | 117,659 | |||||||||
17,864 | Pinnacle Airlines Corp.* | 130,586 | |||||||||
11,099 | Polypore International, Inc.* | 196,563 | |||||||||
3,351 | Powell Industries, Inc.* | 112,527 | |||||||||
927 | Preformed Line Products Co. | 27,810 | |||||||||
3,243 | Protection One, Inc.* | 50,169 | |||||||||
9,429 | Quanex Building Products Corp. | 179,151 | |||||||||
5,426 | RailAmerica, Inc.* | 69,941 | |||||||||
3,463 | Raven Industries, Inc. | 105,137 | |||||||||
4,791 | RBC Bearings, Inc.* | 151,204 | |||||||||
47,347 | Republic Airways Holdings, Inc.* | 296,392 | |||||||||
11,077 | Resources Connection, Inc.* | 194,291 | |||||||||
5,576 | Robbins & Myers, Inc. | 144,474 | |||||||||
5,875 | Rollins, Inc. | 127,781 | |||||||||
7,299 | Rush Enterprises, Inc., Class B* | 100,434 | |||||||||
17,732 | Rush Enterprises, Inc., Class A* | 287,613 | |||||||||
6,865 | Safe Bulkers, Inc. (Marshall Islands) | 54,645 | |||||||||
14,548 | Saia, Inc.* | 241,060 | |||||||||
9,971 | Sauer-Danfoss, Inc.* | 162,029 | |||||||||
4,342 | Schawk, Inc. | 82,281 | |||||||||
13,075 | School Specialty, Inc.* | 306,739 | |||||||||
26,306 | Seaspan Corp. (Hong Kong) | 308,043 | |||||||||
40,556 | SFN Group, Inc.* | 346,754 | |||||||||
9,032 | Simpson Manufacturing Co., Inc. | 306,998 | |||||||||
4,334 | Standard Parking Corp.* | 73,201 | |||||||||
19,814 | Standard Register Co. (The) | 102,042 | |||||||||
5,492 | Standex International Corp. | 131,094 | |||||||||
2,461 | Stanley, Inc.* | 77,841 | |||||||||
36,709 | Star Bulk Carriers Corp. | 104,621 | |||||||||
7,774 | Stericycle, Inc.* | 457,889 | |||||||||
3,991 | Sterling Construction Co., Inc.* | 69,843 | |||||||||
1,789 | Sun Hydraulics Corp. | 50,110 | |||||||||
9,374 | SunPower Corp., Class A* | 155,140 | |||||||||
7,302 | SunPower Corp., Class B* | 109,822 | |||||||||
5,720 | Sykes Enterprises, Inc.* | 130,016 | |||||||||
6,642 | TAL International Group, Inc. | 172,626 | |||||||||
32,392 | TBS International PLC, Class A (Ireland)* | 261,727 | |||||||||
5,129 | Team, Inc.* | 89,245 | |||||||||
13,606 | Tecumseh Products Co., Class A* | 173,885 | |||||||||
3,937 | Tecumseh Products Co., Class B* | 51,653 | |||||||||
10,943 | Teledyne Technologies, Inc.* | 477,115 |
See Notes to Financial Statements.
47
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
5,576 | Tennant Co. | $ | 192,316 | ||||||||
14,434 | Tetra Tech, Inc.* | 351,468 | |||||||||
3,535 | Textainer Group Holdings Ltd. | 81,164 | |||||||||
10,294 | Thermadyne Holdings Corp.* | 112,925 | |||||||||
15,959 | Titan International, Inc. | 198,051 | |||||||||
5,138 | Titan Machinery, Inc.* | 73,884 | |||||||||
8,173 | Toro Co. (The) | 465,371 | |||||||||
8,496 | Towers Watson & Co., Class A | 407,808 | |||||||||
12,114 | Tredegar Corp. | 206,665 | |||||||||
1,723 | Trex Co., Inc.* | 42,196 | |||||||||
14,009 | Trimas Corp.* | 142,472 | |||||||||
4,882 | Triumph Group, Inc. | 378,648 | |||||||||
19,136 | TrueBlue, Inc.* | 302,157 | |||||||||
5,901 | Twin Disc, Inc. | 83,322 | |||||||||
21,729 | Ultrapetrol Bahamas Ltd.* | 132,981 | |||||||||
7,348 | Universal Forest Products, Inc. | 308,983 | |||||||||
5,257 | Universal Truckload Services, Inc.* | 95,993 | |||||||||
3,456 | US Ecology, Inc. | 53,914 | |||||||||
5,651 | USA Truck, Inc.* | 104,091 | |||||||||
3,337 | Valmont Industries, Inc. | 277,939 | |||||||||
3,486 | Verisk Analytics, Inc., Class A* | 97,678 | |||||||||
10,548 | Viad Corp. | 246,823 | |||||||||
5,932 | Vicor Corp.* | 89,692 | |||||||||
13,955 | Volt Information Sciences, Inc.* | 174,996 | |||||||||
1,182 | VSE Corp. | 47,505 | |||||||||
39,082 | Wabash National Corp.* | 379,877 | |||||||||
15,346 | WABCO Holdings, Inc. | 509,334 | |||||||||
7,218 | Wabtec Corp. | 343,432 | |||||||||
11,372 | Waste Services, Inc.* | 127,821 | |||||||||
6,307 | Watsco, Inc. | 373,501 | |||||||||
11,211 | Watts Water Technologies, Inc., Class A | 397,766 | |||||||||
3,351 | Willis Lease Finance Corp.* | 47,048 | |||||||||
11,075 | Woodward Governor Co. | 354,954 | |||||||||
343,038 | YRC Worldwide, Inc.* | 190,969 | |||||||||
54,374,503 | |||||||||||
Information Technology—15.9% | |||||||||||
6,180 | ACI Worldwide, Inc.* | 116,122 | |||||||||
1,879 | Acme Packet, Inc.* | 49,117 | |||||||||
5,519 | Actel Corp.* | 85,655 | |||||||||
22,723 | Acxiom Corp.* | 433,555 | |||||||||
32,650 | Adaptec, Inc.* | 100,889 | |||||||||
45,241 | ADC Telecommunications, Inc.* | 362,380 | |||||||||
10,501 | ADTRAN, Inc. | 281,112 | |||||||||
7,546 | Advanced Energy Industries, Inc.* | 111,077 | |||||||||
2,277 | Advent Software, Inc.* | 102,875 | |||||||||
10,640 | Agilysys, Inc. | 115,444 | |||||||||
14,732 | Anadigics, Inc.* | 74,102 | |||||||||
4,668 | Anaren, Inc.* | 69,180 | |||||||||
788 | Ancestry.com, Inc.* | 15,468 | |||||||||
7,787 | ANSYS, Inc.* | 350,415 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
9,180 | Applied Micro Circuits Corp.* | $ | 103,550 | ||||||||
9,783 | Ariba, Inc.* | 139,603 | |||||||||
36,273 | Arris Group, Inc.* | 445,795 | |||||||||
3,274 | AsiaInfo Holdings, Inc.* | 93,014 | |||||||||
5,710 | Atheros Communications, Inc.* | 221,776 | |||||||||
92,202 | Atmel Corp.* | 501,579 | |||||||||
8,626 | ATMI, Inc.* | 156,389 | |||||||||
11,161 | Avago Technologies Ltd. (Singapore)* | 229,024 | |||||||||
21,247 | Aviat Networks, Inc.* | 138,106 | |||||||||
15,019 | Avid Technology, Inc.* | 219,277 | |||||||||
71,007 | Axcelis Technologies, Inc.* | 168,997 | |||||||||
3,045 | Bel Fuse, Inc., Class B | 71,314 | |||||||||
7,596 | Black Box Corp. | 236,919 | |||||||||
4,839 | Blackbaud, Inc. | 111,539 | |||||||||
2,358 | Blackboard, Inc.* | 100,333 | |||||||||
3,114 | Blue Coat Systems, Inc.* | 101,298 | |||||||||
15,286 | Brooks Automation, Inc.* | 148,580 | |||||||||
4,665 | Cabot Microelectronics Corp.* | 178,949 | |||||||||
53,443 | Cadence Design Systems, Inc.* | 398,685 | |||||||||
1,394 | Cass Information Systems, Inc. | 44,329 | |||||||||
29,162 | CDC Corp., Class A (Hong Kong)* | 77,571 | |||||||||
11,238 | Checkpoint Systems, Inc.* | 253,866 | |||||||||
10,579 | China Security & Surveillance Technology, Inc. (China)* | 62,945 | |||||||||
65,224 | Ciber, Inc.* | 258,939 | |||||||||
11,319 | Ciena Corp.* | 209,288 | |||||||||
8,672 | Cirrus Logic, Inc.* | 110,221 | |||||||||
4,550 | Cogent, Inc.* | 47,093 | |||||||||
7,550 | Cognex Corp. | 157,871 | |||||||||
7,457 | Cogo Group, Inc.* | 52,497 | |||||||||
6,414 | Coherent, Inc.* | 240,974 | |||||||||
5,946 | Cohu, Inc. | 96,028 | |||||||||
56,941 | Compuware Corp.* | 489,693 | |||||||||
7,314 | Comtech Telecommunications Corp.* | 228,489 | |||||||||
3,498 | Concur Technologies, Inc.* | 146,601 | |||||||||
4,471 | CPI International, Inc.* | 60,046 | |||||||||
6,190 | Cree, Inc.* | 453,170 | |||||||||
8,168 | CSG Systems International, Inc.* | 185,577 | |||||||||
15,960 | CTS Corp. | 167,580 | |||||||||
7,777 | Cybersource Corp.* | 199,713 | |||||||||
6,825 | Cymer, Inc.* | 233,074 | |||||||||
20,852 | Cypress Semiconductor Corp.* | 268,782 | |||||||||
12,839 | Daktronics, Inc. | 107,591 | |||||||||
6,632 | DealerTrack Holdings, Inc.* | 101,138 | |||||||||
2,668 | Deltek, Inc.* | 20,997 | |||||||||
2,789 | DG Fastchannel, Inc.* | 98,117 | |||||||||
4,426 | Dice Holdings, Inc.* | 38,373 | |||||||||
7,737 | Digi International, Inc.* | 82,863 | |||||||||
8,604 | Digital River, Inc.* | 240,396 | |||||||||
6,409 | Diodes, Inc.* | 137,601 | |||||||||
12,140 | DSP Group, Inc.* | 99,184 |
See Notes to Financial Statements.
48
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
5,748 | Dynamics Research Corp.* | $ | 82,196 | ||||||||
42,258 | EarthLink, Inc. | 381,167 | |||||||||
6,046 | Electro Rent Corp. | 86,397 | |||||||||
8,358 | Electro Scientific Industries, Inc.* | 115,090 | |||||||||
15,568 | Electronics for Imaging, Inc.* | 200,049 | |||||||||
6,864 | EMS Technologies, Inc.* | 109,069 | |||||||||
17,600 | Emulex Corp.* | 206,800 | |||||||||
36,657 | Entegris, Inc.* | 226,907 | |||||||||
16,000 | Epicor Software Corp.* | 146,880 | |||||||||
9,420 | EPIQ Systems, Inc.* | 113,511 | |||||||||
4,598 | Equinix, Inc.* | 462,789 | |||||||||
12,338 | Euronet Worldwide, Inc.* | 196,544 | |||||||||
8,587 | Exar Corp.* | 63,458 | |||||||||
987 | ExlService Holdings, Inc.* | 15,713 | |||||||||
27,571 | Extreme Networks, Inc.* | 91,811 | |||||||||
4,995 | F5 Networks, Inc.* | 341,808 | |||||||||
3,328 | FactSet Research Systems, Inc. | 250,332 | |||||||||
11,384 | Fair Isaac Corp. | 239,747 | |||||||||
2,928 | FARO Technologies, Inc.* | 73,815 | |||||||||
9,234 | FEI Co.* | 207,765 | |||||||||
7,476 | Finisar Corp.* | 111,841 | |||||||||
8,860 | FormFactor, Inc.* | 132,989 | |||||||||
2,480 | Forrester Research, Inc.* | 79,633 | |||||||||
6,544 | Gartner, Inc.* | 157,580 | |||||||||
21,229 | Genpact Ltd.* | 358,346 | |||||||||
17,380 | Gerber Scientific, Inc.* | 125,136 | |||||||||
19,571 | GigaMedia Ltd. (Taiwan, Republic of China)* | 58,909 | |||||||||
15,355 | Global Cash Access Holdings, Inc.* | 133,281 | |||||||||
9,127 | Global Payments, Inc. | 390,727 | |||||||||
7,063 | Globecomm Systems, Inc.* | 55,021 | |||||||||
8,167 | GSI Commerce, Inc.* | 222,551 | |||||||||
19,310 | Harmonic, Inc.* | 132,080 | |||||||||
11,503 | Heartland Payment Systems, Inc. | 211,425 | |||||||||
1,752 | Hittite Microwave Corp.* | 89,843 | |||||||||
2,521 | Hughes Communications, Inc.* | 70,336 | |||||||||
20,624 | Hutchinson Technology, Inc.* | 125,600 | |||||||||
15,190 | Hypercom Corp.* | 63,039 | |||||||||
3,536 | iGATE Corp.* | 43,776 | |||||||||
41,170 | Imation Corp.* | 446,283 | |||||||||
10,215 | Infinera Corp.* | 93,467 | |||||||||
15,713 | infoGROUP, Inc.* | 125,861 | |||||||||
7,091 | Informatica Corp.* | 177,346 | |||||||||
8,275 | InfoSpace, Inc.* | 86,639 | |||||||||
46,699 | Integrated Device Technology, Inc.* | 308,680 | |||||||||
4,709 | InterDigital, Inc.* | 130,298 | |||||||||
11,463 | Intermec, Inc.* | 131,481 | |||||||||
16,089 | Internap Network Services Corp.* | 92,994 | |||||||||
20,098 | International Rectifier Corp.* | 462,656 | |||||||||
7,923 | Internet Brands, Inc., Class A* | 82,003 | |||||||||
28,302 | Intersil Corp., Class A | 421,134 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
4,247 | Intevac, Inc.* | $ | 59,118 | ||||||||
1,688 | IPG Photonics Corp.* | 29,557 | |||||||||
5,906 | Itron, Inc.* | 470,177 | |||||||||
4,573 | Ixia* | 46,873 | |||||||||
5,547 | IXYS Corp.* | 50,089 | |||||||||
5,811 | j2 Global Communications, Inc.* | 139,929 | |||||||||
16,253 | Jack Henry & Associates, Inc. | 414,777 | |||||||||
5,334 | JDA Software Group, Inc.* | 154,153 | |||||||||
29,718 | JDS Uniphase Corp.* | 386,037 | |||||||||
5,909 | Kenexa Corp.* | 88,694 | |||||||||
7,094 | Knot, Inc. (The)* | 57,532 | |||||||||
13,843 | Kulicke & Soffa Industries, Inc.* | 113,513 | |||||||||
24,170 | L-1 Identity Solutions, Inc.* | 209,554 | |||||||||
25,827 | Lattice Semiconductor Corp.* | 136,108 | |||||||||
27,686 | Lawson Software, Inc.* | 214,843 | |||||||||
10,663 | Lender Processing Services, Inc. | 402,528 | |||||||||
20,727 | Lionbridge Technologies, Inc.* | 112,133 | |||||||||
3,153 | Liquidity Services, Inc.* | 35,850 | |||||||||
4,608 | Littelfuse, Inc.* | 194,596 | |||||||||
4,246 | Loral Space & Communications, Inc.* | 182,833 | |||||||||
2,975 | Manhattan Associates, Inc.* | 85,263 | |||||||||
6,938 | ManTech International Corp., Class A* | 312,418 | |||||||||
2,861 | MAXIMUS, Inc. | 177,125 | |||||||||
4,735 | Measurement Specialties, Inc.* | 77,985 | |||||||||
26,966 | Mentor Graphics Corp.* | 242,424 | |||||||||
5,079 | Mercury Computer Systems, Inc.* | 65,316 | |||||||||
10,293 | Methode Electronics, Inc., Class A | 114,252 | |||||||||
7,177 | Micrel, Inc. | 83,756 | |||||||||
10,221 | MICROS Systems, Inc.* | 379,812 | |||||||||
14,164 | Microsemi Corp.* | 234,556 | |||||||||
1,563 | MicroStrategy, Inc., Class A* | 119,726 | |||||||||
13,875 | MKS Instruments, Inc.* | 314,685 | |||||||||
21,371 | ModusLink Global Solutions, Inc.* | 190,843 | |||||||||
2,819 | Monolithic Power Systems, Inc.* | 69,488 | |||||||||
4,426 | Monotype Imaging Holdings, Inc.* | 46,207 | |||||||||
4,267 | MTS Systems Corp. | 127,455 | |||||||||
3,325 | Multi-Fineline Electronix, Inc.* | 86,184 | |||||||||
43,800 | Nam Tai Electronics, Inc. (Hong Kong)* | 219,876 | |||||||||
7,030 | National Instruments Corp. | 243,097 | |||||||||
2,183 | NCI, Inc., Class A* | 62,019 | |||||||||
20,439 | Ness Technologies, Inc.* | 132,240 | |||||||||
9,338 | Net 1 UEPS Technologies, Inc.* | 153,143 | |||||||||
5,573 | NETGEAR, Inc.* | 150,805 | |||||||||
1,635 | Netlogic Microsystems, Inc.* | 50,963 | |||||||||
4,820 | Netscout Systems, Inc.* | 69,986 | |||||||||
8,576 | NeuStar, Inc., Class A* | 209,855 | |||||||||
11,509 | Newport Corp.* | 136,151 | |||||||||
12,018 | Novatel Wireless, Inc.* | 82,323 | |||||||||
70,743 | Novell, Inc.* | 396,868 | |||||||||
13,476 | OmniVision Technologies, Inc.* | 236,639 | |||||||||
39,205 | Openwave Systems, Inc.* | 87,427 |
See Notes to Financial Statements.
49
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
3,729 | Oplink Communications, Inc.* | $ | 56,345 | ||||||||
30,116 | Opnext, Inc.* | 70,773 | |||||||||
14,392 | Orbotech Ltd. (Israel)* | 174,143 | |||||||||
4,107 | OSI Systems, Inc.* | 106,946 | |||||||||
13,121 | Palm, Inc.* | 76,102 | |||||||||
18,874 | Parametric Technology Corp.* | 350,868 | |||||||||
5,870 | Park Electrochemical Corp. | 177,333 | |||||||||
3,285 | PC Connection, Inc.* | 22,601 | |||||||||
8,942 | PC Mall, Inc.* | 46,409 | |||||||||
5,820 | Perficient, Inc.* | 72,575 | |||||||||
6,598 | Pericom Semiconductor Corp.* | 77,065 | |||||||||
45,507 | Photronics, Inc.* | 248,013 | |||||||||
7,738 | Plantronics, Inc. | 256,902 | |||||||||
9,683 | Plexus Corp.* | 358,755 | |||||||||
31,378 | PMC - Sierra, Inc.* | 277,695 | |||||||||
14,327 | Polycom, Inc.* | 466,344 | |||||||||
2,047 | Power Integrations, Inc. | 78,769 | |||||||||
19,010 | Power-One, Inc.* | 149,419 | |||||||||
83,099 | Powerwave Technologies, Inc.* | 147,085 | |||||||||
8,518 | PRGX Global, Inc.* | 57,582 | |||||||||
7,655 | Progress Software Corp.* | 246,874 | |||||||||
40,317 | Qiao Xing Universal Telephone, Inc. (China)* | 68,539 | |||||||||
19,996 | QLogic Corp.* | 387,323 | |||||||||
49,289 | Quantum Corp.* | 142,938 | |||||||||
13,929 | Quest Software, Inc.* | 244,175 | |||||||||
3,073 | Rackspace Hosting, Inc.* | 55,160 | |||||||||
6,097 | Radiant Systems, Inc.* | 85,785 | |||||||||
8,414 | RadiSys Corp.* | 82,373 | |||||||||
24,608 | RealNetworks, Inc.* | 102,123 | |||||||||
8,217 | Red Hat, Inc.* | 245,442 | |||||||||
2,195 | Renaissance Learning, Inc. | 31,191 | |||||||||
45,243 | RF Micro Devices, Inc.* | 254,266 | |||||||||
3,516 | Riverbed Technology, Inc.* | 108,961 | |||||||||
8,654 | Rofin-Sinar Technologies, Inc.* | 229,850 | |||||||||
3,838 | Rogers Corp.* | 128,458 | |||||||||
11,681 | Rovi Corp.* | 455,325 | |||||||||
12,099 | S1 Corp.* | 74,651 | |||||||||
2,559 | Salesforce.com, Inc.* | 219,050 | |||||||||
11,305 | Sapient Corp. | 115,650 | |||||||||
7,567 | SAVVIS, Inc.* | 133,179 | |||||||||
13,074 | ScanSource, Inc.* | 364,242 | |||||||||
8,033 | Seachange International, Inc.* | 66,915 | |||||||||
8,670 | Semtech Corp.* | 157,361 | |||||||||
7,275 | Sigma Designs, Inc.* | 86,282 | |||||||||
6,799 | Silicon Graphics International Corp.* | 67,242 | |||||||||
43,616 | Silicon Image, Inc.* | 162,252 | |||||||||
3,308 | Silicon Laboratories, Inc.* | 159,942 | |||||||||
4,959 | SINA Corp. (China)* | 181,995 | |||||||||
23,304 | Skyworks Solutions, Inc.* | 392,439 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
18,269 | SMART Modular Technologies (WWH), Inc.* | $ | 128,248 | ||||||||
3,413 | Sohu.com, Inc.* | 164,336 | |||||||||
7,280 | Solera Holdings, Inc. | 282,974 | |||||||||
9,474 | SonicWALL, Inc.* | 95,972 | |||||||||
52,066 | Sonus Networks, Inc.* | 134,851 | |||||||||
14,222 | SRA International, Inc., Class A* | 328,244 | |||||||||
6,361 | Standard Microsystems Corp.* | 163,350 | |||||||||
10,464 | StarTek, Inc.* | 70,946 | |||||||||
5,319 | STEC, Inc.* | 73,881 | |||||||||
4,895 | Super Micro Computer, Inc.* | 69,411 | |||||||||
2,273 | Supertex, Inc.* | 61,394 | |||||||||
2,479 | Switch & Data Facilities Co., Inc.* | 47,572 | |||||||||
6,918 | Sycamore Networks, Inc. | 136,907 | |||||||||
11,918 | Symmetricom, Inc.* | 79,016 | |||||||||
12,511 | Symyx Technologies, Inc.* | 68,185 | |||||||||
4,060 | Synaptics, Inc.* | 124,317 | |||||||||
940 | Synchronoss Technologies, Inc.* | 19,204 | |||||||||
2,163 | Syntel, Inc. | 78,128 | |||||||||
29,295 | Take-Two Interactive Software, Inc.* | 318,437 | |||||||||
3,698 | Taleo Corp., Class A* | 96,074 | |||||||||
36,134 | Technitrol, Inc. | 195,124 | |||||||||
12,037 | Tekelec* | 218,231 | |||||||||
9,094 | TeleCommunication Systems, Inc., Class A* | 62,840 | |||||||||
12,510 | TeleTech Holdings, Inc.* | 207,041 | |||||||||
2,237 | Telvent GIT SA (Spain) | 64,649 | |||||||||
30,620 | Teradyne, Inc.* | 374,483 | |||||||||
3,003 | Tessco Technologies, Inc. | 76,396 | |||||||||
11,020 | Tessera Technologies, Inc.* | 223,486 | |||||||||
45,481 | THQ, Inc.* | 345,656 | |||||||||
30,405 | TIBCO Software, Inc.* | 346,617 | |||||||||
5,781 | TNS, Inc.* | 150,017 | |||||||||
21,019 | Trident Microsystems, Inc.* | 36,363 | |||||||||
24,224 | TriQuint Semiconductor, Inc.* | 182,649 | |||||||||
16,219 | TTM Technologies, Inc.* | 176,138 | |||||||||
2,781 | Tyler Technologies, Inc.* | 47,388 | |||||||||
6,298 | Ultra Clean Holdings, Inc.* | 62,161 | |||||||||
4,123 | Ultratech, Inc.* | 60,567 | |||||||||
34,096 | United Online, Inc. | 271,745 | |||||||||
148,410 | UTStarcom, Inc.* | 422,968 | |||||||||
19,391 | ValueClick, Inc.* | 199,339 | |||||||||
8,631 | Varian Semiconductor Equipment Associates, Inc.* | 284,305 | |||||||||
3,976 | Veeco Instruments, Inc.* | 174,904 | |||||||||
5,903 | VeriFone Holdings, Inc.* | 112,334 | |||||||||
15,857 | Verigy Ltd. (Singapore)* | 189,333 | |||||||||
5,952 | ViaSat, Inc.* | 210,998 | |||||||||
1,508 | VistaPrint NV (Netherlands)* | 77,783 | |||||||||
3,985 | WebMD Health Corp.* | 193,033 | |||||||||
3,910 | Websense, Inc.* | 89,031 |
See Notes to Financial Statements.
50
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
37,165 | Westell Technologies, Inc., Class A* | $ | 53,518 | ||||||||
12,801 | Wright Express Corp.* | 434,850 | |||||||||
8,927 | X-Rite, Inc.* | 29,459 | |||||||||
3,958 | Xyratex Ltd. (Bermuda)* | 69,661 | |||||||||
11,630 | Zebra Technologies Corp., Class A* | 337,851 | |||||||||
13,515 | Zoran Corp.* | 131,501 | |||||||||
45,168,882 | |||||||||||
Materials—5.4% | |||||||||||
12,001 | A. Schulman, Inc. | 312,146 | |||||||||
12,878 | A.M. Castle & Co.* | 176,686 | |||||||||
3,046 | AEP Industries, Inc.* | 84,161 | |||||||||
6,315 | AMCOL International Corp. | 181,493 | |||||||||
7,548 | American Vanguard Corp. | 61,139 | |||||||||
9,899 | Arch Chemicals, Inc. | 336,665 | |||||||||
50,012 | Boise, Inc.* | 344,583 | |||||||||
9,293 | Brush Engineered Materials, Inc.* | 276,281 | |||||||||
15,292 | Buckeye Technologies, Inc.* | 215,923 | |||||||||
10,341 | Bway Holding Co.* | 204,545 | |||||||||
5,576 | Calgon Carbon Corp.* | 86,428 | |||||||||
12,998 | Carpenter Technology Corp. | 510,431 | |||||||||
2,322 | Clearwater Paper Corp.* | 147,865 | |||||||||
25,400 | Coeur d'Alene Mines Corp.* | 455,168 | |||||||||
3,481 | Compass Minerals International, Inc. | 262,154 | |||||||||
1,552 | Deltic Timber Corp. | 81,666 | |||||||||
13,226 | Eagle Materials, Inc. | 421,513 | |||||||||
46,154 | Ferro Corp.* | 504,002 | |||||||||
13,581 | General Steel Holdings, Inc. (China)* | 50,657 | |||||||||
24,134 | Georgia Gulf Corp.* | 495,712 | |||||||||
7,002 | Globe Specialty Metals, Inc.* | 87,525 | |||||||||
15,192 | H.B. Fuller Co. | 356,252 | |||||||||
5,013 | Haynes International, Inc. | 180,017 | |||||||||
58,191 | Headwaters, Inc.* | 349,146 | |||||||||
31,018 | Hecla Mining Co.* | 185,177 | |||||||||
13,769 | Horsehead Holding Corp.* | 163,576 | |||||||||
9,777 | ICO, Inc. | 83,789 | |||||||||
5,116 | Innophos Holdings, Inc. | 145,755 | |||||||||
12,773 | Innospec, Inc.* | 170,009 | |||||||||
5,479 | Intrepid Potash, Inc.* | 143,879 | |||||||||
4,831 | Kaiser Aluminum Corp. | 194,158 | |||||||||
5,744 | KapStone Paper and Packaging Corp.* | 74,098 | |||||||||
6,824 | Koppers Holdings, Inc. | 192,232 | |||||||||
3,365 | Kraton Performance Polymers, Inc.* | 63,800 | |||||||||
9,670 | Landec Corp.* | 59,277 | |||||||||
6,004 | LSB Industries, Inc.* | 106,631 | |||||||||
51,612 | Mercer International, Inc.* | 284,382 | |||||||||
5,506 | Minerals Technologies, Inc. | 317,696 | |||||||||
14,249 | Myers Industries, Inc. | 154,744 | |||||||||
9,089 | Neenah Paper, Inc. | 159,058 | |||||||||
3,227 | NewMarket Corp. | 354,970 | |||||||||
1,968 | NL Industries, Inc. | 16,708 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
6,526 | Olympic Steel, Inc. | $ | 207,396 | ||||||||
12,837 | OM Group, Inc.* | 484,597 | |||||||||
18,905 | Omnova Solutions, Inc.* | 144,623 | |||||||||
16,609 | P.H. Glatfelter Co. | 243,986 | |||||||||
4,896 | Penford Corp.* | 45,288 | |||||||||
52,266 | PolyOne Corp.* | 591,128 | |||||||||
5,200 | Quaker Chemical Corp. | 163,644 | |||||||||
3,366 | Royal Gold, Inc. | 172,272 | |||||||||
10,054 | RTI International Metals, Inc.* | 271,961 | |||||||||
9,180 | Schnitzer Steel Industries, Inc., Class A | 495,720 | |||||||||
4,414 | Schweitzer-Mauduit International, Inc. | 251,245 | |||||||||
15,710 | Sensient Technologies Corp. | 495,336 | |||||||||
6,336 | Shengda Tech, Inc.* | 43,655 | |||||||||
24,194 | Solutia, Inc.* | 425,814 | |||||||||
22,329 | Spartech Corp.* | 317,965 | |||||||||
2,026 | Stepan Co. | 153,470 | |||||||||
9,051 | Stillwater Mining Co.* | 152,962 | |||||||||
1,243 | STR Holdings, Inc.* | 28,664 | |||||||||
6,518 | Sutor Technology Group Ltd.* | 17,925 | |||||||||
6,495 | Terra Nova Royalty Corp. (Canada)* | 87,877 | |||||||||
7,950 | Texas Industries, Inc. | 300,828 | |||||||||
17,188 | Titanium Metals Corp.* | 265,039 | |||||||||
134,572 | U.S. Concrete, Inc.* | 71,323 | |||||||||
19,886 | U.S. Gold Corp.* | 67,811 | |||||||||
394 | U.S. Lime & Minerals, Inc.* | 16,056 | |||||||||
3,510 | Universal Stainless & Alloy Products, Inc.* | 81,888 | |||||||||
2,995 | Valhi, Inc. | 85,717 | |||||||||
11,909 | Verso Paper Corp.* | 62,403 | |||||||||
3,153 | Walter Energy, Inc. | 254,794 | |||||||||
27,121 | Wausau Paper Corp.* | 240,021 | |||||||||
2,669 | Zep, Inc. | 49,216 | |||||||||
9,937 | Zoltek Cos., Inc.* | 97,780 | |||||||||
15,440,501 | |||||||||||
Telecommunication Services—1.4% | |||||||||||
1,879 | AboveNet, Inc.* | 94,965 | |||||||||
28,949 | Alaska Communications Systems Group, Inc. | 247,803 | |||||||||
1,832 | Atlantic Tele-Network, Inc. | 101,090 | |||||||||
4,534 | Cbeyond, Inc.* | 69,733 | |||||||||
132,452 | Cincinnati Bell, Inc.* | 446,363 | |||||||||
10,397 | Clearwire Corp., Class A* | 80,265 | |||||||||
4,001 | Cogent Communications Group, Inc.* | 40,850 | |||||||||
9,030 | Consolidated Communications Holdings, Inc. | 167,506 | |||||||||
35,399 | General Communication, Inc., Class A* | 217,704 | |||||||||
11,145 | Global Crossing Ltd.* | 165,503 | |||||||||
23,047 | Globalstar, Inc.* | 42,406 | |||||||||
24,648 | IDT Corp., Class B* | 244,262 | |||||||||
11,238 | Iowa Telecommunications Services, Inc. | 189,248 | |||||||||
5,760 | Iridium Communications, Inc.* | 46,426 |
See Notes to Financial Statements.
51
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
3,698 | Neutral Tandem, Inc.* | $ | 62,681 | ||||||||
7,705 | NTELOS Holdings Corp. | 151,249 | |||||||||
37,436 | PAETEC Holding Corp.* | 186,431 | |||||||||
23,680 | Premiere Global Services, Inc.* | 221,882 | |||||||||
6,824 | SBA Communications Corp., Class A* | 241,365 | |||||||||
4,693 | Shenandoah Telecommunications Co. | 83,348 | |||||||||
14,933 | SureWest Communications* | 128,424 | |||||||||
13,094 | Syniverse Holdings, Inc.* | 262,927 | |||||||||
23,573 | USA Mobility, Inc. | 328,608 | |||||||||
3,821,039 | |||||||||||
Utilities—1.7% | |||||||||||
13,412 | ALLETE, Inc. | 489,136 | |||||||||
5,709 | American States Water Co. | 213,060 | |||||||||
5,740 | California Water Service Group | 222,310 | |||||||||
4,719 | Cascal NV (Netherlands) | 31,806 | |||||||||
5,585 | Central Vermont Public Service Corp. | 121,809 | |||||||||
8,207 | CH Energy Group, Inc. | 339,934 | |||||||||
2,669 | Chesapeake Utilities Corp. | 80,390 | |||||||||
2,486 | Connecticut Water Service, Inc. | 58,893 | |||||||||
17,856 | El Paso Electric Co.* | 379,440 | |||||||||
16,360 | Empire District Electric Co. (The) | 319,183 | |||||||||
6,355 | ITC Holdings Corp. | 354,800 | |||||||||
12,251 | Laclede Group, Inc. (The) | 417,514 | |||||||||
7,793 | MGE Energy, Inc. | 286,471 | |||||||||
4,502 | Middlesex Water Co. | 81,306 | |||||||||
8,723 | Northwest Natural Gas Co. | 413,383 | |||||||||
3,172 | Ormat Technologies, Inc. | 101,060 | |||||||||
4,527 | SJW Corp. | 124,402 | |||||||||
7,877 | South Jersey Industries, Inc. | 355,331 | |||||||||
9,223 | Southwest Water Co. | 98,409 | |||||||||
12,988 | UIL Holdings Corp. | 377,042 | |||||||||
3,971 | Unitil Corp. | 87,680 | |||||||||
4,953,359 | |||||||||||
Total Common Stocks and Other Equity Interests (Cost $253,251,032) | 284,104,424 | ||||||||||
Money Market Fund—0.0% | |||||||||||
48,096 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $48,096) | 48,096 | |||||||||
Total Investments (Cost $253,299,128)—100.0% | 284,152,520 | ||||||||||
Liabilities in excess of other assets—0.0% | (17,359 | ) | |||||||||
Net Assets—100.0% | $ | 284,135,161 |
Investment Abbreviations:
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
52
Schedule of Investments
PowerShares NXQ Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.1% | |||||||||||
Consumer Discretionary—19.9% | |||||||||||
1,810 | Ctrip.com International Ltd. ADR (China)* | $ | 66,101 | ||||||||
1,750 | Discovery Communications, Inc., Class A* | 67,725 | |||||||||
1,140 | Dollar Tree, Inc.* | 69,221 | |||||||||
980 | DreamWorks Animation SKG, Inc., Class A* | 38,896 | |||||||||
1,795 | Gentex Corp. | 38,575 | |||||||||
1,745 | Liberty Global, Inc., Class A* | 47,831 | |||||||||
1,840 | LKQ Corp.* | 38,750 | |||||||||
691 | Netflix, Inc.* | 68,250 | |||||||||
1,600 | PetSmart, Inc. | 52,912 | |||||||||
50,240 | Sirius XM Radio, Inc.* | 59,283 | |||||||||
547,544 | |||||||||||
Consumer Staples—6.4% | |||||||||||
565 | Green Mountain Coffee Roasters, Inc.* | 41,053 | |||||||||
1,140 | Hansen Natural Corp.* | 50,251 | |||||||||
2,200 | Whole Foods Market, Inc.* | 85,844 | |||||||||
177,148 | |||||||||||
Energy—1.9% | |||||||||||
1,880 | Linn Energy LLC | 50,948 | |||||||||
Health Care—20.0% | |||||||||||
1,150 | Alexion Pharmaceuticals, Inc.* | 63,112 | |||||||||
1,845 | Amylin Pharmaceuticals, Inc.* | 38,081 | |||||||||
1,735 | Dendreon Corp.* | 94,072 | |||||||||
2,365 | Human Genome Sciences, Inc.* | 65,487 | |||||||||
750 | IDEXX Laboratories, Inc.* | 49,605 | |||||||||
850 | Lincare Holdings, Inc.* | 39,687 | |||||||||
1,180 | Perrigo Co. | 72,015 | |||||||||
1,530 | Pharmaceutical Product Development, Inc. | 42,075 | |||||||||
706 | Shire PLC ADR | 46,483 | |||||||||
705 | United Therapeutics Corp.* | 40,107 | |||||||||
550,724 | |||||||||||
Industrials—7.5% | |||||||||||
1,044 | Bucyrus International, Inc. | 65,782 | |||||||||
1,086 | Copart, Inc.* | 38,759 | |||||||||
2,655 | R.R. Donnelley & Sons Co. | 57,056 | |||||||||
1,530 | Ryanair Holdings PLC ADR (Ireland)* | 43,085 | |||||||||
204,682 | |||||||||||
Information Technology—36.0% | |||||||||||
2,210 | Akamai Technologies, Inc.* | 85,814 | |||||||||
1,160 | ANSYS, Inc.* | 52,200 | |||||||||
1,510 | ASML Holding NV (Netherlands) | 49,317 | |||||||||
5,735 | Brocade Communications Systems, Inc.* | 37,220 | |||||||||
1,370 | Cree, Inc.* | 100,298 | |||||||||
510 | Equinix, Inc.* | 51,331 | |||||||||
1,030 | F5 Networks, Inc.* | 70,483 | |||||||||
520 | Itron, Inc.* | 41,397 | |||||||||
10,990 | Micron Technology, Inc.* | 102,756 | |||||||||
950 | NetEase.com, Inc. ADR (China)* | 33,126 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
3,670 | Nuance Communications, Inc.* | $ | 67,051 | ||||||||
5,530 | ON Semiconductor Corp.* | 43,908 | |||||||||
1,495 | Rambus, Inc.* | 36,074 | |||||||||
1,350 | Rovi Corp.* | 52,623 | |||||||||
1,891 | Synopsys, Inc.* | 42,945 | |||||||||
4,970 | Tellabs, Inc. | 45,128 | |||||||||
1,560 | Trimble Navigation Ltd.* | 51,028 | |||||||||
560 | VistaPrint NV (Netherlands)* | 28,885 | |||||||||
991,584 | |||||||||||
Materials—4.1% | |||||||||||
815 | Randgold Resources Ltd. ADR (Channel Islands)* | 68,656 | |||||||||
2,795 | Steel Dynamics, Inc. | 43,909 | |||||||||
112,565 | |||||||||||
Telecommunication Services—4.3% | |||||||||||
1,510 | SBA Communications Corp., Class A* | 53,409 | |||||||||
5,900 | Windstream Corp. | 65,195 | |||||||||
118,604 | |||||||||||
Total Investments (Cost $2,080,923)—100.1% | 2,753,799 | ||||||||||
Liabilities in excess of other assets—(0.1%) | (1,686 | ) | |||||||||
Net Assets—100.0% | $ | 2,752,113 |
Investment Abbreviations:
ADR—American Depositary Receipt
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
53
Statements of Assets and Liabilities
April 30, 2010
PowerShares Dynamic MagniQuant Portfolio | PowerShares Dynamic Market Portfolio | PowerShares Dynamic OTC Portfolio | |||||||||||||
ASSETS: | |||||||||||||||
Unaffiliated investments, at value | $ | 27,113,514 | $ | 230,182,569 | $ | 40,691,437 | |||||||||
Affiliated investments, at value (Note 4) | — | — | — | ||||||||||||
Receivables: | |||||||||||||||
Dividends | 11,467 | 203,463 | 4,821 | ||||||||||||
Expense waivers | 9,160 | — | 7,632 | ||||||||||||
Investments sold | — | 2,034,317 | — | ||||||||||||
Shares sold | — | — | — | ||||||||||||
Other assets | 3,000 | 3,000 | 3,000 | ||||||||||||
Total Assets | 27,137,141 | 232,423,349 | 40,706,890 | ||||||||||||
LIABILITIES: | |||||||||||||||
Due to custodian | 6,063 | 6,804 | 6,063 | ||||||||||||
Payables: | |||||||||||||||
Shares repurchased | — | 2,036,521 | — | ||||||||||||
Investments purchased | — | — | — | ||||||||||||
Expense recapture | — | 15,830 | — | ||||||||||||
Accrued advisory fees | 11,105 | 97,258 | 17,538 | ||||||||||||
Accrued expenses | 46,852 | 116,275 | 48,521 | ||||||||||||
Total Liabilities | 64,020 | 2,272,688 | 72,122 | ||||||||||||
NET ASSETS | $ | 27,073,121 | $ | 230,150,661 | $ | 40,634,768 | |||||||||
NET ASSETS CONSIST OF: | |||||||||||||||
Shares of beneficial interest | $ | 47,238,385 | $ | 546,955,220 | $ | 111,481,728 | |||||||||
Undistributed net investment income (loss) | 8,384 | 221,358 | (2,794 | ) | |||||||||||
Accumulated net realized loss on investments and foreign currency related transactions | (23,764,882 | ) | (334,236,431 | ) | (76,681,350 | ) | |||||||||
Net unrealized appreciation (depreciation) on investments | 3,591,234 | 17,210,514 | 5,837,184 | ||||||||||||
Net Assets | $ | 27,073,121 | $ | 230,150,661 | $ | 40,634,768 | |||||||||
Shares outstanding (unlimited amount authorized, $0.01 par value) | 1,200,000 | 5,700,000 | 900,000 | ||||||||||||
Net asset value | $ | 22.56 | $ | 40.38 | $ | 45.15 | |||||||||
Share price | $ | 22.56 | $ | 40.83 | $ | 45.15 | |||||||||
Unaffiliated investments, at cost | $ | 23,522,280 | $ | 212,972,055 | $ | 34,854,253 | |||||||||
Affiliated investments, at cost | $ | — | $ | — | $ | — |
See Notes to Financial Statements.
54
PowerShares FTSE RAFI US 1000 Portfolio | PowerShares FTSE RAFI US 1500 Small-Mid Portfolio | PowerShares NXQ Portfolio | |||||||||||||
ASSETS: | |||||||||||||||
Unaffiliated investments, at value | $ | 648,099,390 | $ | 284,152,520 | $ | 2,753,799 | |||||||||
Affiliated investments, at value (Note 4) | 279,926 | — | — | ||||||||||||
Receivables: | |||||||||||||||
Dividends | 729,563 | 144,388 | 851 | ||||||||||||
Expense waivers | 7,300 | — | — | ||||||||||||
Investments sold | — | 153,996 | — | ||||||||||||
Shares sold | 2,646,588 | — | — | ||||||||||||
Other assets | 3,001 | — | — | ||||||||||||
Total Assets | 651,765,768 | 284,450,904 | 2,754,650 | ||||||||||||
LIABILITIES: | |||||||||||||||
Due to custodian | 65,086 | 17,168 | 968 | ||||||||||||
Payables: | |||||||||||||||
Shares repurchased | — | — | — | ||||||||||||
Investments purchased | 2,820,543 | 80,658 | — | ||||||||||||
Expense recapture | — | 2,603 | — | ||||||||||||
Accrued advisory fees | 152,161 | 66,325 | 1,569 | ||||||||||||
Accrued expenses | 299,989 | 148,989 | — | ||||||||||||
Total Liabilities | 3,337,779 | 315,743 | 2,537 | ||||||||||||
NET ASSETS | $ | 648,427,989 | $ | 284,135,161 | $ | 2,752,113 | |||||||||
NET ASSETS CONSIST OF: | |||||||||||||||
Shares of beneficial interest | $ | 816,240,400 | $ | 279,244,148 | $ | 3,025,668 | |||||||||
Undistributed net investment income (loss) | 1,058,714 | 200,492 | — | ||||||||||||
Accumulated net realized loss on investments and foreign currency related transactions | (166,490,782 | ) | (26,162,871 | ) | (946,431 | ) | |||||||||
Net unrealized appreciation (depreciation) on investments | (2,380,343 | ) | 30,853,392 | 672,876 | |||||||||||
Net Assets | $ | 648,427,989 | $ | 284,135,161 | $ | 2,752,113 | |||||||||
Shares outstanding (unlimited amount authorized, $0.01 par value) | 12,250,000 | 4,750,000 | 100,000 | ||||||||||||
Net asset value | $ | 52.93 | $ | 59.82 | $ | 27.52 | |||||||||
Share price | $ | 53.46 | $ | 59.79 | $ | 27.51 | |||||||||
Unaffiliated investments, at cost | $ | 650,604,065 | $ | 253,299,128 | $ | 2,080,923 | |||||||||
Affiliated investments, at cost | $ | 155,594 | $ | — | $ | — |
55
Statements of Operations
Year Ended April 30, 2010
PowerShares Dynamic MagniQuant Portfolio | PowerShares Dynamic Market Portfolio | PowerShares Dynamic OTC Portfolio | |||||||||||||
INVESTMENT INCOME: | |||||||||||||||
Unaffiliated dividend income | $ | 330,051 | $ | 4,011,745 | $ | 250,665 | |||||||||
Affiliated dividend income | — | — | — | ||||||||||||
Foreign withholding tax | (24 | ) | (342 | ) | — | ||||||||||
Total Income | 330,027 | 4,011,403 | 250,665 | ||||||||||||
EXPENSES: | |||||||||||||||
Advisory fees | 149,475 | 1,315,446 | 204,404 | ||||||||||||
Accounting & administration fees | 64,668 | 66,587 | 64,668 | ||||||||||||
Professional fees | 31,151 | 41,640 | 31,620 | ||||||||||||
Custodian & transfer agent fees | 19,165 | 25,309 | 11,787 | ||||||||||||
Sub-licensing | 14,947 | 78,926 | 12,264 | ||||||||||||
Trustees | 5,103 | 13,319 | 5,466 | ||||||||||||
Other expenses | 9,090 | 50,312 | 16,959 | ||||||||||||
Total Expenses | 293,599 | 1,591,539 | 347,168 | ||||||||||||
(Waivers) | (99,281 | ) | (12,917 | ) | (101,882 | ) | |||||||||
Net Expenses | 194,318 | 1,578,622 | 245,286 | ||||||||||||
Net Investment Income (Loss) | 135,709 | 2,432,781 | 5,379 | ||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | |||||||||||||||
Net realized gain (loss) from: | |||||||||||||||
Investments | (656,365 | ) | (9,667,735 | ) | (2,398,360 | ) | |||||||||
In-kind redemptions | 8,131,127 | 75,315,231 | 11,899,642 | ||||||||||||
Foreign currency related transactions | — | — | — | ||||||||||||
Net increase from payment by affiliate (see Note 3) | — | — | — | ||||||||||||
Net realized gain (loss) | 7,474,762 | 65,647,496 | 9,501,282 | ||||||||||||
Net change in unrealized appreciation on: Investments | 938,651 | 1,137,502 | 3,802,752 | ||||||||||||
Net realized and unrealized gain on investments | 8,413,413 | 66,784,998 | 13,304,034 | ||||||||||||
Net increase in net assets resulting from operations | $ | 8,549,122 | $ | 69,217,779 | $ | 13,309,413 |
See Notes to Financial Statements.
56
PowerShares FTSE RAFI US 1000 Portfolio | PowerShares FTSE RAFI US 1500 Small-Mid Portfolio | PowerShares NXQ Portfolio | |||||||||||||
INVESTMENT INCOME: | |||||||||||||||
Unaffiliated dividend income | $ | 8,980,830 | $ | 1,777,175 | $ | 10,188 | |||||||||
Affiliated dividend income | 118,692 | — | — | ||||||||||||
Foreign withholding tax | (2,836 | ) | (586 | ) | (220 | ) | |||||||||
Total Income | 9,096,686 | 1,776,589 | 9,968 | ||||||||||||
EXPENSES: | |||||||||||||||
Advisory fees | 1,492,728 | 485,570 | 15,458 | ||||||||||||
Accounting & administration fees | 125,747 | 64,668 | — | ||||||||||||
Professional fees | 50,863 | 35,894 | — | ||||||||||||
Custodian & transfer agent fees | 74,662 | 33,930 | — | ||||||||||||
Sub-licensing | 463,260 | 150,696 | — | ||||||||||||
Trustees | 20,654 | 9,138 | — | ||||||||||||
Other expenses | 78,879 | 68,669 | — | ||||||||||||
Total Expenses | 2,306,793 | 848,565 | 15,458 | ||||||||||||
(Waivers) | (299,332 | ) | (195,556 | ) | — | ||||||||||
Net Expenses | 2,007,461 | 653,009 | 15,458 | ||||||||||||
Net Investment Income (Loss) | 7,089,225 | 1,123,580 | (5,490 | ) | |||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | |||||||||||||||
Net realized gain (loss) from: | |||||||||||||||
Investments | (115,032,373 | ) | (15,914,345 | ) | (33,242 | ) | |||||||||
In-kind redemptions | 81,005,653 | 39,300,956 | 229,262 | ||||||||||||
Foreign currency related transactions | — | 2,872 | — | ||||||||||||
Net increase from payment by affiliate (see Note 3) | — | 818,480 | — | ||||||||||||
Net realized gain (loss) | (34,026,720 | ) | 24,207,963 | 196,020 | |||||||||||
Net change in unrealized appreciation on: Investments | 239,935,703 | 60,075,407 | 806,720 | ||||||||||||
Net realized and unrealized gain on investments | 205,908,983 | 84,283,370 | 1,002,740 | ||||||||||||
Net increase in net assets resulting from operations | $ | 212,998,208 | $ | 85,406,950 | $ | 997,250 |
57
Statements of Changes in Net Assets
PowerShares Dynamic MagniQuant Portfolio | PowerShares Dynamic Market Portfolio | PowerShares Dynamic OTC Portfolio | |||||||||||||||||||||||||
Year Ended April 30, 2010 | Year Ended April 30, 2009 | Year Ended April 30, 2010 | Year Ended April 30, 2009 | Year Ended April 30, 2010 | Year Ended April 30, 2009 | ||||||||||||||||||||||
OPERATIONS: | |||||||||||||||||||||||||||
Net investment income (loss) | $ | 135,709 | $ | 301,723 | $ | 2,432,781 | $ | 5,290,794 | $ | 5,379 | $ | 52,820 | |||||||||||||||
Net realized gain (loss) on investments and foreign currency related transactions | 7,474,762 | (21,597,836 | ) | 65,647,496 | (217,180,493 | ) | 9,501,282 | (29,545,505 | ) | ||||||||||||||||||
Net increase from payment by affiliate (see Note 3) | — | — | — | — | — | — | |||||||||||||||||||||
Net change in unrealized appreciation (depreciation) on investments | 938,651 | 3,017,483 | 1,137,502 | 15,906,229 | 3,802,752 | 2,948,627 | |||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 8,549,122 | (18,278,630 | ) | 69,217,779 | (195,983,470 | ) | 13,309,413 | (26,544,058 | ) | ||||||||||||||||||
Undistributed net investment income (loss) included in the price of units issued and redeemed | (5,701 | ) | (14,018 | ) | 2,383 | (90,167 | ) | (11,386 | ) | (30,940 | ) | ||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||||||||||||
Net investment income | (149,699 | ) | (279,388 | ) | (2,569,156 | ) | (5,193,546 | ) | (61,560 | ) | — | ||||||||||||||||
Return of capital | — | — | — | — | — | — | |||||||||||||||||||||
Total distributions to shareholders | (149,699 | ) | (279,388 | ) | (2,569,156 | ) | (5,193,546 | ) | (61,560 | ) | — | ||||||||||||||||
SHAREHOLDER TRANSACTIONS: | |||||||||||||||||||||||||||
Proceeds from shares sold | 34,234,568 | 58,065,641 | 440,326,158 | 419,971,271 | 45,391,077 | 117,636,471 | |||||||||||||||||||||
Value of shares repurchased | (44,212,083 | ) | (73,556,808 | ) | (537,603,548 | ) | (578,717,396 | ) | (57,397,632 | ) | (147,885,491 | ) | |||||||||||||||
Net income equalization | 5,701 | 14,018 | (2,383 | ) | 90,167 | 11,386 | 30,940 | ||||||||||||||||||||
Net increase (decrease) in net assets resulting from shares transactions | (9,971,814 | ) | (15,477,149 | ) | (97,279,773 | ) | (158,655,958 | ) | (11,995,169 | ) | (30,218,080 | ) | |||||||||||||||
Increase (Decrease) in Net Assets | (1,578,092 | ) | (34,049,185 | ) | (30,628,767 | ) | (359,923,141 | ) | 1,241,298 | (56,793,078 | ) | ||||||||||||||||
NET ASSETS: | |||||||||||||||||||||||||||
Beginning of year | 28,651,213 | 62,700,398 | 260,779,428 | 620,702,569 | 39,393,470 | 96,186,548 | |||||||||||||||||||||
End of year | $ | 27,073,121 | $ | 28,651,213 | $ | 230,150,661 | $ | 260,779,428 | $ | 40,634,768 | $ | 39,393,470 | |||||||||||||||
Undistributed net investment income (loss) at end of year | $ | 8,384 | $ | 22,335 | $ | 221,358 | $ | 357,733 | $ | (2,794 | ) | $ | 52,820 | ||||||||||||||
CHANGES IN SHARES OUTSTANDING: | |||||||||||||||||||||||||||
Shares sold | 1,800,000 | 2,700,000 | 12,350,000 | 11,050,000 | 1,200,000 | 2,800,000 | |||||||||||||||||||||
Shares repurchased | (2,300,000 | ) | (3,500,000 | ) | (14,950,000 | ) | (15,650,000 | ) | (1,500,000 | ) | (3,650,000 | ) | |||||||||||||||
Shares outstanding, beginning of year | 1,700,000 | 2,500,000 | 8,300,000 | 12,900,000 | 1,200,000 | 2,050,000 | |||||||||||||||||||||
Shares outstanding, end of year | 1,200,000 | 1,700,000 | 5,700,000 | 8,300,000 | 900,000 | 1,200,000 |
See Notes to Financial Statements.
58
PowerShares FTSE RAFI US 1000 Portfolio | PowerShares FTSE RAFI US 1500 Small-Mid Portfolio | PowerShares NXQ Portfolio | |||||||||||||||||||||||||
Year Ended April 30, 2010 | Year Ended April 30, 2009 | Year Ended April 30, 2010 | Year Ended April 30, 2009 | Year Ended April 30, 2010 | Year Ended April 30, 2009 | ||||||||||||||||||||||
OPERATIONS: | |||||||||||||||||||||||||||
Net investment income (loss) | $ | 7,089,225 | $ | 12,820,222 | $ | 1,123,580 | $ | 1,261,499 | $ | (5,490 | ) | $ | (6,809 | ) | |||||||||||||
Net realized gain (loss) on investments and foreign currency related transactions | (34,026,720 | ) | (132,347,764 | ) | 23,389,483 | (24,506,125 | ) | 196,020 | (682,990 | ) | |||||||||||||||||
Net increase from payment by affiliate (see Note 3) | — | — | 818,480 | — | — | — | |||||||||||||||||||||
Net change in unrealized appreciation (depreciation) on investments | 239,935,703 | (160,948,517 | ) | 60,075,407 | (16,174,382 | ) | 806,720 | (262,500 | ) | ||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 212,998,208 | (280,476,059 | ) | 85,406,950 | (39,419,008 | ) | 997,250 | (952,299 | ) | ||||||||||||||||||
Undistributed net investment income (loss) included in the price of units issued and redeemed | 107,266 | (915,463 | ) | 266,740 | 11,433 | — | 16 | ||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||||||||||||
Net investment income | (7,652,691 | ) | (15,035,089 | ) | (1,105,854 | ) | (1,209,035 | ) | — | (2,563 | ) | ||||||||||||||||
Return of capital | — | — | — | — | — | (2,563 | ) | ||||||||||||||||||||
Total distributions to shareholders | (7,652,691 | ) | (15,035,089 | ) | (1,105,854 | ) | (1,209,035 | ) | — | (5,126 | ) | ||||||||||||||||
SHAREHOLDER TRANSACTIONS: | |||||||||||||||||||||||||||
Proceeds from shares sold | 230,021,021 | 115,318,454 | 211,958,906 | 49,466,935 | 3,558,619 | 16,268,388 | |||||||||||||||||||||
Value of shares repurchased | (183,381,082 | ) | (300,328,510 | ) | (106,523,770 | ) | (45,383,840 | ) | (3,558,619 | ) | (16,314,218 | ) | |||||||||||||||
Net income equalization | (107,266 | ) | 915,463 | (266,740 | ) | (11,433 | ) | — | (16 | ) | |||||||||||||||||
Net increase (decrease) in net assets resulting from shares transactions | 46,532,673 | (184,094,593 | ) | 105,168,396 | 4,071,662 | — | (45,846 | ) | |||||||||||||||||||
Increase (Decrease) in Net Assets | 251,985,456 | (480,521,204 | ) | 189,736,232 | (36,544,948 | ) | 997,250 | (1,003,255 | ) | ||||||||||||||||||
NET ASSETS: | |||||||||||||||||||||||||||
Beginning of year | 396,442,533 | 876,963,737 | 94,398,929 | 130,943,877 | 1,754,863 | 2,758,118 | |||||||||||||||||||||
End of year | $ | 648,427,989 | $ | 396,442,533 | $ | 284,135,161 | $ | 94,398,929 | $ | 2,752,113 | $ | 1,754,863 | |||||||||||||||
Undistributed net investment income (loss) at end of year | $ | 1,058,714 | $ | 1,625,836 | $ | 200,492 | $ | 203,397 | $ | — | $ | — | |||||||||||||||
CHANGES IN SHARES OUTSTANDING: | |||||||||||||||||||||||||||
Shares sold | 4,700,000 | 3,500,000 | 4,050,000 | 1,700,000 | 150,000 | 600,000 | |||||||||||||||||||||
Shares repurchased | (3,850,000 | ) | (8,000,000 | ) | (2,000,000 | ) | (1,600,000 | ) | (150,000 | ) | (600,000 | ) | |||||||||||||||
Shares outstanding, beginning of year | 11,400,000 | 15,900,000 | 2,700,000 | 2,600,000 | 100,000 | 100,000 | |||||||||||||||||||||
Shares outstanding, end of year | 12,250,000 | 11,400,000 | 4,750,000 | 2,700,000 | 100,000 | 100,000 |
59
Financial Highlights
PowerShares Dynamic MagniQuant Portfolio
Year Ended April 30, | For the Period October 12, 2006* Through | ||||||||||||||||||
2010 | 2009 | 2008 | April 30, 2007 | ||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||
Net asset value at beginning of period | $ | 16.85 | $ | 25.08 | $ | 28.02 | $ | 25.37 | |||||||||||
Net investment income** | 0.09 | 0.14 | 0.14 | 0.15 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 5.71 | (8.24 | ) | (2.87 | ) | 2.55 | |||||||||||||
Total from investment operations | 5.80 | (8.10 | ) | (2.73 | ) | 2.70 | |||||||||||||
Distributions to shareholders from: | |||||||||||||||||||
Net investment income | (0.09 | ) | (0.13 | ) | (0.20 | ) | (0.05 | ) | |||||||||||
Return of capital | — | — | (0.01 | ) | — | ||||||||||||||
Total distributions | (0.09 | ) | (0.13 | ) | (0.21 | ) | (0.05 | ) | |||||||||||
Net asset value at end of period | $ | 22.56 | $ | 16.85 | $ | 25.08 | $ | 28.02 | |||||||||||
Share price at end of period*** | $ | 22.56 | $ | 16.84 | |||||||||||||||
NET ASSET VALUE TOTAL RETURN**** | 34.54 | % | (32.40 | )% | (9.81 | )% | 10.67 | % | |||||||||||
SHARE PRICE TOTAL RETURN**** | 34.62 | % | (32.41 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 27,073 | $ | 28,651 | $ | 62,700 | $ | 81,269 | |||||||||||
Ratio to average net assets of: | |||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.65 | % | 0.65 | % | 0.67 | % | 0.67 | %† | |||||||||||
Expenses, prior to (Waivers) and/or Recapture | 0.98 | % | 0.87 | % | 0.72 | % | 0.84 | %† | |||||||||||
Net investment income, after (Waivers) and/or Recapture | 0.45 | % | 0.70 | % | 0.53 | % | 1.04 | %† | |||||||||||
Portfolio turnover rate †† | 98 | % | 102 | % | 76 | % | 23 | % | |||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | (0.00 | )(a) | $ | (0.01 | ) | $ | 0.00 | (a) | $ | 0.02 |
PowerShares Dynamic Market Portfolio
Year Ended April 30, | |||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of year | $ | 31.42 | $ | 48.12 | $ | 53.32 | $ | 47.87 | $ | 39.11 | |||||||||||||
Net investment income** | 0.33 | 0.50 | 0.37 | 0.42 | 0.34 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 8.97 | (16.72 | ) | (5.09 | ) | 5.35 | 8.75 | ||||||||||||||||
Total from investment operations | 9.30 | (16.22 | ) | (4.72 | ) | 5.77 | 9.09 | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.34 | ) | (0.48 | ) | (0.48 | ) | (0.32 | ) | (0.33 | ) | |||||||||||||
Net asset value at end of year | $ | 40.38 | $ | 31.42 | $ | 48.12 | $ | 53.32 | $ | 47.87 | |||||||||||||
Share price at end of year*** | $ | 40.83 | $ | 31.41 | |||||||||||||||||||
NET ASSET VALUE TOTAL RETURN**** | 29.75 | % | (33.86 | )% | (8.93 | )% | 12.12 | % | 23.30 | % | |||||||||||||
SHARE PRICE TOTAL RETURN**** | 29.80 | % | (33.84 | )% | |||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 230,151 | $ | 260,779 | $ | 620,703 | $ | 973,105 | $ | 919,156 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.60 | % | 0.60 | % | 0.58 | % | 0.60 | % | 0.60 | % | |||||||||||||
Expenses, prior to (Waivers) and/or Recapture | 0.60 | % | 0.60 | % | 0.59 | % | 0.62 | % | 0.63 | % | |||||||||||||
Net investment income, after (Waivers) and/or Recapture | 0.92 | % | 1.28 | % | 0.72 | % | 0.87 | % | 0.76 | % | |||||||||||||
Portfolio turnover rate †† | 98 | % | 113 | % | 121 | % | 114 | % | 103 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | 0.00 | (a) | $ | (0.01 | ) | $ | (0.01 | ) | $ | 0.00 | (a) | — |
* Commencement of Investment Operations.
** Based on average shares outstanding.
*** The mean between the last bid and ask prices.
**** Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all dividends and distributions at share price during the period, and sale at the share price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
† Annualized.
†† Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
# The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(a) Amount represents less than $0.005.
See Notes to Financial Statements.
60
Financial Highlights (Continued)
PowerShares Dynamic OTC Portfolio
Year Ended April 30, | |||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of year | $ | 32.83 | $ | 46.92 | $ | 55.03 | $ | 53.60 | $ | 42.38 | |||||||||||||
Net investment income (loss)** | 0.01 | 0.03 | (0.11 | ) | (0.07 | ) | (0.02 | ) | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 12.36 | (14.12 | ) | (7.94 | ) | 1.50 | 11.30 | ||||||||||||||||
Total from investment operations | 12.37 | (14.09 | ) | (8.05 | ) | 1.43 | 11.28 | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.05 | ) | — | — | — | (0.02 | ) | ||||||||||||||||
Return of capital | — | — | (0.06 | ) | — | (0.04 | ) | ||||||||||||||||
Total distributions | (0.05 | ) | — | (0.06 | ) | — | (0.06 | ) | |||||||||||||||
Net asset value at end of year | $ | 45.15 | $ | 32.83 | $ | 46.92 | $ | 55.03 | $ | 53.60 | |||||||||||||
Share price at end of year*** | $ | 45.15 | $ | 32.83 | |||||||||||||||||||
NET ASSET VALUE TOTAL RETURN**** | 37.73 | % | (30.03 | )% | (14.65 | )% | 2.67 | % | 26.63 | % | |||||||||||||
SHARE PRICE TOTAL RETURN**** | 37.73 | % | (30.06 | )% | |||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 40,635 | $ | 39,393 | $ | 96,187 | $ | 159,599 | $ | 222,440 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.60 | % | 0.59 | % | 0.59 | % | 0.60 | % | 0.60 | % | |||||||||||||
Expenses, prior to (Waivers) and/or Recapture | 0.85 | % | 0.74 | % | 0.64 | % | 0.69 | % | 0.69 | % | |||||||||||||
Net investment income (loss), after (Waivers) and/or Recapture | 0.01 | % | 0.08 | % | (0.21 | )% | (0.15 | )% | (0.04 | )% | |||||||||||||
Portfolio turnover rate †† | 90 | % | 77 | % | 60 | % | 107 | % | 77 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.01 | ) | $ | 0.03 | — |
PowerShares FTSE RAFI US 1000 Portfolio
Year Ended April 30, | For the Period December 19, 2005* Through | ||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | April 30, 2006 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 34.78 | $ | 55.15 | $ | 60.99 | $ | 52.44 | $ | 49.64 | |||||||||||||
Net investment income** | 0.62 | 0.97 | 0.89 | 0.78 | 0.24 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 18.21 | (20.26 | ) | (5.96 | ) | 8.38 | 2.68 | ||||||||||||||||
Total from investment operations | 18.83 | (19.29 | ) | (5.07 | ) | 9.16 | 2.92 | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.68 | ) | (1.08 | ) | (0.77 | ) | (0.61 | ) | (0.12 | ) | |||||||||||||
Net asset value at end of period | $ | 52.93 | $ | 34.78 | $ | 55.15 | $ | 60.99 | $ | 52.44 | |||||||||||||
Share price at end of period*** | $ | 53.46 | $ | 34.78 | |||||||||||||||||||
NET ASSET VALUE TOTAL RETURN**** | 54.57 | % | (35.26 | )% | (8.42 | )% | 17.60 | % | 5.89 | % | |||||||||||||
SHARE PRICE TOTAL RETURN**** | 54.66 | % | (35.20 | )% | |||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 648,428 | $ | 396,443 | $ | 876,964 | $ | 1,055,189 | $ | 104,883 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.39 | % | 0.58 | % | 0.67 | % | 0.70 | % | 0.76 | %† | |||||||||||||
Expenses, prior to (Waivers) and/or Recapture | 0.45 | % | 0.60 | % | 0.66 | % | 0.71 | % | 1.00 | %† | |||||||||||||
Net investment income, after (Waivers) and/or Recapture | 1.38 | % | 2.34 | % | 1.50 | % | 1.40 | % | 1.38 | %† | |||||||||||||
Portfolio turnover rate †† | 24 | % | 15 | % | 12 | % | 8 | % | 2 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | 0.01 | $ | (0.07 | ) | $ | (0.04 | ) | $ | 0.33 | — |
* Commencement of Investment Operations.
** Based on average shares outstanding.
*** The mean between the last bid and ask prices.
**** Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all dividends and distributions at share price during the period, and sale at the share price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
† Annualized.
†† Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
# The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
See Notes to Financial Statements.
61
Financial Highlights (Continued)
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio
Year Ended April 30, | For the Period September 20, 2006* Through | ||||||||||||||||||
2010 | 2009 | 2008 | April 30, 2007 | ||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||
Net asset value at beginning of period | $ | 34.96 | $ | 50.36 | $ | 57.12 | $ | 50.52 | |||||||||||
Net investment income** | 0.32 | 0.46 | 0.50 | 0.27 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 24.88 | (15.42 | ) | (6.81 | ) | 6.50 | |||||||||||||
Total from investment operations | 25.20 | (14.96 | ) | (6.31 | ) | 6.77 | |||||||||||||
Distributions to shareholders from: | |||||||||||||||||||
Net investment income | (0.34 | ) | (0.44 | ) | (0.45 | ) | (0.17 | ) | |||||||||||
Net asset value at end of period | $ | 59.82 | $ | 34.96 | $ | 50.36 | $ | 57.12 | |||||||||||
Share price at end of period*** | $ | 59.79 | $ | 34.90 | |||||||||||||||
NET ASSET VALUE TOTAL RETURN**** | 72.38 | %(a) | (29.79 | )% | (11.10 | )% | 13.42 | % | |||||||||||
SHARE PRICE TOTAL RETURN**** | 72.59 | % | (29.84 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 284,135 | $ | 94,399 | $ | 130,944 | $ | 85,680 | |||||||||||
Ratio to average net assets of: | |||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.39 | % | 0.58 | % | 0.71 | % | 0.73 | %† | |||||||||||
Expenses, prior to (Waivers) and/or Recapture | 0.51 | % | 0.79 | % | 0.76 | % | 0.92 | %† | |||||||||||
Net investment income, after (Waivers) and/or Recapture | 0.67 | % | 1.22 | % | 0.92 | % | 0.83 | %† | |||||||||||
Portfolio turnover rate †† | 16 | % | 15 | % | 42 | % | 9 | % | |||||||||||
Undistributed net investment income included in price of units issued and redeemed**# | $ | 0.08 | $ | 0.00 | (b) | $ | 0.09 | $ | 0.05 |
PowerShares NXQ Portfolio
Year Ended April 30, | For the Period April 1, 2008* Through | ||||||||||||||
2010 | 2009 | April 30, 2008 | |||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||
Net asset value at beginning of period | $ | 17.55 | $ | 27.58 | $ | 25.77 | |||||||||
Net investment income (loss)** | (0.05 | ) | (0.07 | ) | 0.03 | ||||||||||
Net realized and unrealized gain (loss) on investments | 10.02 | (9.91 | ) | 1.78 | |||||||||||
Total from investment operations | 9.97 | (9.98 | ) | 1.81 | |||||||||||
Distributions to shareholders from: | |||||||||||||||
Net investment income | — | (0.03 | ) | — | |||||||||||
Return of capital | — | (0.02 | ) | — | |||||||||||
Total distributions | — | (0.05 | ) | — | |||||||||||
Net asset value at end of period | $ | 27.52 | $ | 17.55 | $ | 27.58 | |||||||||
Share price at end of period*** | $ | 27.51 | $ | 17.52 | |||||||||||
NET ASSET VALUE TOTAL RETURN**** | 56.81 | % | (36.21 | )% | 7.02 | %(c) | |||||||||
SHARE PRICE TOTAL RETURN**** | 57.02 | % | (36.32 | )% | |||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||
Net assets at end of period (000's omitted) | $ | 2,752 | $ | 1,755 | $ | 2,758 | |||||||||
Ratio to average net assets of: | |||||||||||||||
Expenses | 0.70 | % | 0.70 | % | 0.70 | %† | |||||||||
Net investment income (loss) | (0.25 | )% | (0.30 | )% | 0.93 | %† | |||||||||
Portfolio turnover rate †† | 62 | % | 118 | % | 15 | % | |||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | — | $ | 0.00 | (b) | $ | (0.01 | ) |
* Commencement of Investment Operations.
** Based on average shares outstanding.
*** The mean between the last bid and ask prices.
**** Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all dividends and distributions at share price during the period, and sale at the share price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
† Annualized.
†† Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
# The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(a) Amount includes the effect of the Adviser pay-in for an economic loss of $0.17 per share. Had the pay-in not been made, the Net Asset Value Total Return would have been 71.89%.
(b) Amount represents less than $0.005.
(c) The total return from Fund Inception (first day of trading on the exchange) to April 30, 2008 was 5.71%.
See Notes to Financial Statements.
62
Notes to Financial Statements
PowerShares Exchange-Traded Fund Trust
April 30, 2010
Note 1. Organization
PowerShares Exchange-Traded Fund Trust (the "Trust") was organized as a Massachusetts business trust on June 9, 2000 and is authorized to have multiple series of portfolios. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"). As of April 30, 2010, the Trust offered sixty-two portfolios. This report includes the following portfolios:
Full Name | Short Name | ||||||
PowerShares Dynamic MagniQuant Portfolio | "Dynamic MagniQuant Portfolio" | ||||||
PowerShares Dynamic Market Portfolio | "Dynamic Market Portfolio" | ||||||
PowerShares Dynamic OTC Portfolio | "Dynamic OTC Portfolio" | ||||||
PowerShares FTSE RAFI US 1000 Portfolio | "FTSE RAFI US 1000 Portfolio" | ||||||
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio | "FTSE RAFI US 1500 Small-Mid Portfolio" | ||||||
PowerShares NXQ Portfolio | "NXQ Portfolio" | ||||||
Each portfolio (the "Fund" and collectively the "Funds") represents a separate series of the Trust. The shares of the Funds are referred to herein as "Shares" or "Fund's Shares." Each Fund's Shares are listed and traded on the NYSE Arca, Inc. ("NYSE Arca"), except for Shares of the FTSE RAFI US 1500 Small-Mid Portfolio and NXQ Portfolio which are listed and traded on The NASDAQ Stock Market LLC.
The Funds' market prices may differ to some degree from the net asset value ("NAV") of the Shares of each Fund. Unlike conventional mutual funds, each Fund issues and redeems Shares on a continuous basis, at NAV, only in a large specified number of Shares, each called a "Creation Unit." Creation Units are issued and redeemed generally in-kind for securities included in the relevant index. Except when aggregated in Creation Units, the Shares are not individually redeemable securities of the Funds.
The investment objective of each Fund is to seek investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the following indices (each, an "Underlying Index"):
Fund | Index | ||||||
Dynamic MagniQuant Portfolio | Top 200 Dynamic IntellidexSM Index | ||||||
Dynamic Market Portfolio | Dynamic Market IntellidexSM Index | ||||||
Dynamic OTC Portfolio | Dynamic OTC IntellidexSM Index | ||||||
FTSE RAFI US 1000 Portfolio | FTSE RAFI U.S. 1000 Index | ||||||
FTSE RAFI US 1500 Small-Mid Portfolio | FTSE RAFI U.S. 1500 Small-Mid Index | ||||||
NXQ Portfolio | NASDAQ Q-50 IndexSM | ||||||
Note 2. Significant Accounting Policies
The preparation of the financial statements in accordance with Generally Accepted Accounting Principles ("GAAP") in the United States of America requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements, including estimates and assumptions related to taxation. Actual results could differ from these estimates. In addition, the Funds monitor for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
63
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
A. Security Valuation
Securities, including restricted securities, are valued according to the following policies.
A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. Listed options, if no closing price is available, are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices.
Investments in open-end registered investment companies not traded on an exchange are valued at the end of day NAV per share.
Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the London world markets. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the New York Stock Exchange ("NYSE"), closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to refl ect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accou nting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources.
64
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust's officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security's fair value.
Valuations change in response to many factors, including the historical and prospective earnings of the issuer, the value of the issuer's assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B. Other Risks
Replication Management Risk. The Funds are not "actively" managed and do not seek returns in excess of their respective Underlying Indices. Therefore, they would not necessarily sell a stock because the stock's issuer was in financial trouble unless that stock is removed from its Underlying Index.
Non-Diversified Fund Risk. The NXQ Portfolio is considered non-diversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single investment could cause greater fluctuations in Share price than would occur in a diversified fund.
Concentration Risk. If a Fund concentrates its investments in an industry or group of industries, the value of the Fund's Shares may rise and fall more than the value of shares of a fund that invests in a broader range of securities.
Non-Correlation Risk. Each Fund's return may not match the return of its Underlying Index for a number of reasons. For example, each Fund incurs operating expenses not applicable to its Underlying Index, and incurs costs in buying and selling securities, especially when rebalancing the securities holdings to reflect changes in the composition of its Underlying Index. In addition, the performance of each Fund and its Underlying Index may vary due to asset valuation differences and differences between each Fund's portfolio and its Underlying Index resulting from legal restrictions, cost or liquidity constraints.
C. Federal Income Taxes
Each Fund intends to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of the Fund's taxable earnings to its shareholders. As such, the Funds will not be subject to Federal income taxes on otherwise taxable income (including net realized gains) that is distributed to the shareholders. Therefore, no provision for Federal income taxes is recorded in the financial statements.
Income and capital gain distributions are determined in accordance with Federal income tax regulations, which may differ from GAAP. These differences are primarily due to differing book and tax treatments for in-kind transactions, losses deferred due to wash sales, and passive foreign investment company adjustments, if any.
The Funds file tax returns in the United States Federal jurisdiction and certain other jurisdictions. Generally, a Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
65
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
D. Investment Income and Investment Transactions
Dividend income is recorded on the ex-dividend date net of foreign taxes withheld, if any. Interest income is recorded on the accrual basis. Investment transactions are recorded on the trade date. Realized gains and losses from the sale or disposition of securities are calculated on the specific identified cost basis. Dividends and interest received by a Fund may give rise to withholding and other taxes imposed by foreign countries. Corporate actions (including cash dividends) are recorded net of non-reclaimable foreign tax withholdings on the ex-dividend date. Tax conventions between certain countries and the United States may reduce or eliminate such taxes.
E. Expenses
Expenses of the Trust, which are directly identifiable to a specific Fund, are applied to that Fund. Expenses which are not readily identifiable to a specific Fund are allocated in such a manner as deemed equitable, taking into consideration the nature and type of expense and the relative net assets of each Fund.
Each Fund (except for NXQ Portfolio) is responsible for all of its expenses, including the investment advisory fees, costs of transfer agency, custody, fund administration, legal, audit and other services, interest, taxes, brokerage commissions and other expenses connected with executions of portfolio transactions, any distribution fees or expenses and extraordinary expenses.
The NXQ Portfolio has agreed to pay an annual unitary management fee to Invesco PowerShares Capital Management LLC (the "Adviser"). The Adviser has agreed to pay for substantially all expenses of the NXQ Portfolio, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for advisory fees, distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses.
F. Dividends and Distributions to Shareholders
Each Fund declares and pays dividends from net investment income, if any, to its shareholders quarterly and records on ex-dividend date. Each Fund distributes net realized taxable capital gains, if any, generally annually in cash and records on ex-dividend date. Such distributions on a tax basis are determined in conformity with income tax regulations which may differ from GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in such Fund's financial statements as a tax return of capital at fiscal period-end.
G. Equalization
All Funds use the accounting practice of equalization. This accounting method is used to keep the continuing shareholder's per Share equity in undistributed net investment income from being affected by the continuous sales and redemptions of capital Shares. Equalization is calculated on a per Share basis whereby a portion of the proceeds from the sales and cost of repurchases of capital Shares is applied to undistributed net investment income. The amount of equalization is disclosed in the Statements of Changes in Net Assets as undistributed net investment income included in the price of capital Shares issued or redeemed. The distributions to shareholders of amounts so applied may be deemed to be a return of capital for tax purposes to the extent that such distributions exceed taxable income.
Note 3. Investment Advisory Agreement and Other Agreements
The Trust has entered into an Investment Advisory Agreement with the Adviser pursuant to which the Adviser has overall responsibility as the Funds' investment adviser for the selection and ongoing monitoring of the Funds' investments, managing the Funds' business affairs and providing certain clerical,
66
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
bookkeeping and other administrative services. Each Fund (except for the FTSE RAFI US 1000 Portfolio, the FTSE RAFI US 1500 Small-Mid Portfolio and the NXQ Portfolio) has agreed to pay the Adviser an annual fee of 0.50% of the Fund's average daily net assets. Each of the FTSE RAFI US 1000 Portfolio and the FTSE RAFI US 1500 Small-Mid Portfolio has agreed to pay the Adviser an annual fee of 0.29% of the Fund's average daily net assets. The NXQ Portfolio has agreed to pay the Adviser an annual unitary management fee of 0.70% of the Fund's average daily net assets and the Adviser has agreed to pay for substantially all expenses of the NXQ Portfolio, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for advisory fees, distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses.
The Adviser has entered into an Amended and Restated Excess Expense Agreement (the "Excess Expense Agreement") with the Trust. For the Dynamic MagniQuant Portfolio, the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of the Fund (excluding interest expense, brokerage commissions and other trading expenses, sub-licensing fees, offering costs, taxes and extraordinary expenses) from exceeding 0.60% of the Fund's average daily net assets per year (the "Expense Cap"), at least until August 31, 2011. The FTSE RAFI US 1000 Portfolio's and the FTSE RAFI US 1500 Small-Mid Portfolio's Expense Cap is 0.39% of the Fund's average daily net assets per year, at least until August 31, 2011, and sub-licensing fees are included in the expenses subject to the Expense Cap. Offering costs excluded from the Expense Cap are: (a) initial legal fees pertaining to the Funds' Shares offer ed for sale; (b) initial Securities and Exchange Commission and state registration fees; and (c) initial fees paid to be listed on an exchange. For the Dynamic Market Portfolio and the Dynamic OTC Portfolio, the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of each Fund (excluding interest expense, brokerage commissions and other trading expenses, taxes and extraordinary expenses) from exceeding 0.60% of the Fund's average daily net assets per year at least until August 31, 2011.
For the Dynamic MagniQuant Portfolio, the FTSE RAFI US 1000 Portfolio and the FTSE RAFI US 1500 Small-Mid Portfolio, the Excess Expense Agreement provides that the expenses borne by the Adviser are subject to recapture by the Adviser for up to three years from the date the fee or expense was borne by the Adviser, but no recapture payment will be made by a Fund if it would result in the Fund exceeding its Expense Cap as specified above. For the Dynamic Market Portfolio and the Dynamic OTC Portfolio, the expenses borne by the Adviser are not subject to recapture. The Excess Expense Agreement does not apply to the NXQ Portfolio.
The net amount of fees waived and other expenses assumed by the Adviser and the amount of recapture paid to the Adviser pursuant to the Excess Expense Agreement are collectively referred to as "(Waivers) and/or Recapture." The net amounts of (Waivers) and/or Recapture for the fiscal year ended April 30, 2010 are shown on the Statements of Operations.
For the year ended April 30, 2010, the Adviser has reimbursed the FTSE RAFI US 1500 Small-Mid Portfolio for an economic loss of $818,480.
The amounts available for potential future recapture by the Adviser under the Excess Expense Agreement and the expiration schedule at April 30, 2010 are as follows:
Total Potential | Potential Recapture Amounts Expiring | ||||||||||||||||||
Recapture Amounts | 04/30/11 | 04/30/12 | 04/30/13 | ||||||||||||||||
Dynamic MagniQuant Portfolio | $ | 248,735 | $ | 52,795 | $ | 96,659 | $ | 99,281 | |||||||||||
FTSE RAFI US 1000 Portfolio | 398,254 | — | 79,203 | 319,051 | |||||||||||||||
FTSE RAFI US 1500 Small-Mid Portfolio | 498,019 | 67,242 | 228,798 | 201,979 |
67
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
The Trust has entered into a Distribution Agreement with Invesco Distributors, Inc. (formerly, Invesco Aim Distributors, Inc.) (the "Distributor"), which serves as the distributor of Creation Units for each Fund. The Distributor does not maintain a secondary market in the Shares.
The Adviser has entered into a licensing agreement for each Fund with the following Licensors:
Fund | Licensor | ||||||
Dynamic MagniQuant Portfolio | NYSE Arca | ||||||
Dynamic Market Portfolio | NYSE Arca | ||||||
Dynamic OTC Portfolio | NYSE Arca | ||||||
FTSE RAFI US 1000 Portfolio | FTSE International Ltd. | ||||||
FTSE RAFI US 1500 Small-Mid Portfolio | FTSE International Ltd. | ||||||
NXQ Portfolio | The NASDAQ OMX Group, Inc. | ||||||
Each Underlying Index name trademark is owned by the respective Licensors. These trademarks have been licensed to the Adviser for use with the Funds. The Funds are not sponsored, endorsed, sold or promoted by the Licensors and the Licensors make no representation regarding the advisability of investing in any of these Funds. The Trust has entered into a sub-licensing agreement under which the Funds (other than the NXQ Portfolio) are required to pay the sub-licensing fees which are shown on the Statements of Operations.
The Trust has entered into service agreements whereby The Bank of New York Mellon, a wholly-owned subsidiary of The Bank of New York Mellon Corporation, serves as the administrator, custodian, fund accountant and transfer agent for each Fund.
Note 4. Investments in Affiliates
The Fund's Adviser is a subsidiary of Invesco Ltd. and therefore, Invesco Ltd. is considered to be affiliated with the Fund. The table below shows the transactions in and earnings from the investment in Invesco Ltd. for the fiscal year ended April 30, 2010.
FTSE RAFI US 1000 Portfolio
Value 04/30/09 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain | Value 04/30/10 | Dividend Income | |||||||||||||||||||||||||
Invesco Ltd. | $ | 4,330,859 | $ | 1,275,936 | $ | (7,053,287 | ) | $ | (545,011 | ) | $ | 2,271,429 | $ | 279,926 | $ | 118,692 |
Note 5. Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3) generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other
68
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment's assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of April 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
Investment in Securities | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Dynamic MagniQuant Portfolio | |||||||||||||||||||
Equity Securities | $ | 27,061,846 | $ | — | $ | — | $ | 27,061,846 | |||||||||||
Money Market Fund | 51,668 | — | — | 51,668 | |||||||||||||||
Total Investments | 27,113,514 | — | — | 27,113,514 | |||||||||||||||
Dynamic Market Portfolio | |||||||||||||||||||
Equity Securities | 229,951,471 | — | — | 229,951,471 | |||||||||||||||
Money Market Fund | 231,098 | — | — | 231,098 | |||||||||||||||
Total Investments | 230,182,569 | — | — | 230,182,569 | |||||||||||||||
Dynamic OTC Portfolio | |||||||||||||||||||
Equity Securities | 40,629,224 | — | — | 40,629,224 | |||||||||||||||
Money Market Fund | 62,213 | — | — | 62,213 | |||||||||||||||
Total Investments | 40,691,437 | — | — | 40,691,437 | |||||||||||||||
FTSE RAFI US 1000 Portfolio | |||||||||||||||||||
Equity Securities | 648,379,316 | — | — | 648,379,316 | |||||||||||||||
FTSE RAFI US 1500 Small-Mid Portfolio | |||||||||||||||||||
Equity Securities | 284,067,771 | 36,653 | — | 284,104,424 | |||||||||||||||
Money Market Fund | 48,096 | — | — | 48,096 | |||||||||||||||
Total Investments | 284,115,867 | 36,653 | — | 284,152,520 | |||||||||||||||
NXQ Portfolio | |||||||||||||||||||
Equity Securities | 2,753,799 | — | — | 2,753,799 |
69
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
Note 6. Distributions to Shareholders and Tax Components of Net Assets
Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended April 30, 2010 and 2009:
2010 | 2009 | ||||||||||||||||||
Ordinary Income | Return of Capital | Ordinary Income | Return of Capital | ||||||||||||||||
Dynamic MagniQuant Portfolio | $ | 149,699 | $ | — | $ | 279,388 | $ | — | |||||||||||
Dynamic Market Portfolio | 2,569,156 | — | 5,193,546 | — | |||||||||||||||
Dynamic OTC Portfolio | 61,560 | — | — | — | |||||||||||||||
FTSE RAFI US 1000 Portfolio | 7,652,691 | — | 15,035,089 | — | |||||||||||||||
FTSE RAFI US 1500 Small-Mid Portfolio | 1,105,854 | — | 1,209,035 | — | |||||||||||||||
NXQ Portfolio | — | — | 2,563 | 2,563 |
Tax Components of Net Assets at Fiscal Year-End:
Undistributed Ordinary Income | Temporary Book/Tax Differences | Net Unrealized Appreciation (Depreciation) | Capital Loss Carryforward | Post-October Deferrals* | Shares of Beneficial Interest | Total Net Assets | |||||||||||||||||||||||||
Dynamic MagniQuant Portfolio | $ | 12,022 | $ | (3,638 | ) | $ | 3,590,387 | $ | (22,995,896 | ) | $ | (768,139 | ) | $ | 47,238,385 | $ | 27,073,121 | ||||||||||||||
Dynamic Market Portfolio | 233,891 | (12,533 | ) | 17,208,532 | (333,974,746 | ) | (259,703 | ) | 546,955,220 | 230,150,661 | |||||||||||||||||||||
Dynamic OTC Portfolio | 1,394 | (4,188 | ) | 5,837,087 | (75,473,565 | ) | (1,207,688 | ) | 111,481,728 | 40,634,768 | |||||||||||||||||||||
FTSE RAFI US 1000 Portfolio | 1,075,381 | (16,667 | ) | (34,558,543 | ) | (95,828,111 | ) | (38,484,471 | ) | 816,240,400 | 648,427,989 | ||||||||||||||||||||
FTSE RAFI US 1500 Small-Mid Portfolio | 370,165 | (5,171 | ) | 21,502,012 | (13,530,742 | ) | (3,445,251 | ) | 279,244,148 | 284,135,161 | |||||||||||||||||||||
NXQ Portfolio | — | — | 646,238 | (877,901 | ) | (41,892 | ) | 3,025,668 | 2,752,113 |
* Capital losses incurred after October 31 ("Post-October losses") within the taxable year are deemed to arise on the first business day of each Fund's next taxable year.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Funds to utilize. The ability to utilize capital loss carryforward in the future may be limited under Internal Revenue Code rules and related regulations based on the results of future transactions.
70
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
The following Funds have capital loss carryforward amounts as of April 30, 2010, which expire on April 30 of each year listed below:
2011 | 2012 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | Total* | |||||||||||||||||||||||||||||||
Dynamic MagniQuant Portfolio | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 5,211,608 | $ | 10,595,808 | $ | 7,188,480 | $ | 22,995,896 | |||||||||||||||||||||
Dynamic Market Portfolio | 225,469 | 8,920,879 | 5,021,729 | 13,686,812 | 65,552,628 | 39,899,556 | 96,635,542 | 104,032,131 | 333,974,746 | ||||||||||||||||||||||||||||||
Dynamic OTC Portfolio | 252,044 | 651,452 | 5,297,385 | 5,449,844 | 21,767,708 | 11,353,752 | 15,764,010 | 14,937,370 | 75,473,565 | ||||||||||||||||||||||||||||||
FTSE RAFI US 1000 Portfolio | — | — | — | — | 44,432 | 1,148,192 | 44,806,580 | 49,828,907 | 95,828,111 | ||||||||||||||||||||||||||||||
FTSE RAFI US 1500 Small-Mid Portfolio | — | — | — | — | 5,818 | 128,460 | 8,229,508 | 5,166,956 | 13,530,742 | ||||||||||||||||||||||||||||||
NXQ Portfolio | — | — | — | — | — | 14,131 | 126,742 | 737,028 | 877,901 |
* Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code.
Note 7. Investment Transactions
For the fiscal year ended April 30, 2010, the cost of securities purchased and proceeds from sales of securities, excluding short-term securities, money market funds and in-kind transactions, were as follows:
Purchases | Sales | ||||||||||
Dynamic MagniQuant Portfolio | $ | 28,618,650 | $ | 29,645,686 | |||||||
Dynamic Market Portfolio | 294,638,316 | 254,056,539 | |||||||||
Dynamic OTC Portfolio | 42,117,200 | 36,342,890 | |||||||||
FTSE RAFI US 1000 Portfolio | 121,588,230 | 124,548,192 | |||||||||
FTSE RAFI US 1500 Small-Mid Portfolio | 26,134,790 | 48,222,225 | |||||||||
NXQ Portfolio | 1,375,399 | 1,347,657 |
71
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
For the fiscal year ended April 30, 2010, in-kind transactions associated with creations and redemptions were as follows:
Securities Received | Securities Delivered | ||||||||||
Dynamic MagniQuant Portfolio | $ | 38,895,528 | $ | 47,853,906 | |||||||
Dynamic Market Portfolio | 397,710,267 | 535,831,735 | |||||||||
Dynamic OTC Portfolio | 44,252,238 | 62,055,373 | |||||||||
FTSE RAFI US 1000 Portfolio | 221,814,084 | 172,932,839 | |||||||||
FTSE RAFI US 1500 Small-Mid Portfolio | 225,953,662 | 97,404,270 | |||||||||
NXQ Portfolio | 832,660 | 866,403 |
Gains and losses on in-kind transactions are generally not considered taxable gains/(losses) for Federal income tax purposes.
At April 30, 2010, the aggregate cost and the net unrealized appreciation (depreciation) of investments for tax purposes were as follows:
Cost | Net Unrealized Appreciation (Depreciation) | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | ||||||||||||||||
Dynamic MagniQuant Portfolio | $ | 23,523,127 | $ | 3,590,387 | $ | 3,891,377 | $ | (300,990 | ) | ||||||||||
Dynamic Market Portfolio | 212,974,037 | 17,208,532 | 19,581,721 | (2,373,189 | ) | ||||||||||||||
Dynamic OTC Portfolio | 34,854,350 | 5,837,087 | 6,102,949 | (265,862 | ) | ||||||||||||||
FTSE RAFI US 1000 Portfolio | 682,937,859 | (34,558,543 | ) | 37,592,335 | (72,150,878 | ) | |||||||||||||
FTSE RAFI US 1500 Small-Mid Portfolio | 262,650,508 | 21,502,012 | 32,715,918 | (11,213,906 | ) | ||||||||||||||
NXQ Portfolio | 2,107,561 | 646,238 | 682,508 | (36,270 | ) |
Note 8. Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of investment activity, on April 30, 2010, amounts were reclassified between undistributed net investment income (loss), undistributed net realized gain (loss) and Shares of beneficial interest. These reclassifications had no effect on the net assets of each Fund. For the fiscal year ended April 30, 2010, the reclassifications were as follows:
Undistributed Net Investment Income (Loss) | Undistributed Net Realized Gain (Loss) | Shares of Beneficial Interest | |||||||||||||
Dynamic MagniQuant Portfolio | $ | 5,740 | $ | (8,122,117 | ) | $ | 8,116,377 | ||||||||
Dynamic Market Portfolio | (2,383 | ) | (75,261,906 | ) | 75,264,289 | ||||||||||
Dynamic OTC Portfolio | 11,953 | (11,892,158 | ) | 11,880,205 | |||||||||||
FTSE RAFI US 1000 Portfolio | (110,922 | ) | (52,563,062 | ) | 52,673,984 | ||||||||||
FTSE RAFI US 1500 Small-Mid Portfolio | (287,371 | ) | (36,026,571 | ) | 36,313,942 | ||||||||||
NXQ Portfolio | 5,490 | (220,903 | ) | 215,413 |
72
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
Note 9. Trustees' Fees
The Funds compensate each Trustee who is not an employee of the Adviser or its affiliates. With respect to NXQ Portfolio, the Adviser, as a result of the unitary management fee, pays for such compensation. The "Interested" Trustees of the Trust do not receive any Trustees' fees.
The Trust has adopted a deferred compensation plan (the "Plan"). Under the Plan, a Trustee who is not an "interested person" (as defined in the 1940 Act) (an "Independent Trustee") and has executed a Deferred Fee Agreement (a "Participating Trustee") may defer receipt of all or a portion of his compensation ("Deferral Fees"). Such Deferral Fees are deemed to be invested in selected PowerShares Funds. The Deferral Fees payable to the Participating Trustee are valued as of the date such Deferral Fees would have been paid to the Participating Trustee. The value increases with contributions or with increases in the value of the Shares selected, and the value decreases with distributions or with declines in the value of the Shares selected.
Note 10. Capital
Shares are created and redeemed by the Trust only in Creation Unit size aggregations of 50,000 Shares. Only Authorized Participants are permitted to purchase or redeem Creation Units from the Funds. Such transactions are generally permitted on an in-kind basis, with a balancing cash component to equate the transaction to the NAV per Share of each Fund of the Trust on the transaction date. Cash may be substituted equivalent to the value of certain securities generally when they are not available in sufficient quantity for delivery, not eligible for trading by the Authorized Participant or as a result of other market circumstances.
Note 11. Indemnifications
Under the Trust's organizational documents, its officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. Each Independent Trustee is also indemnified against certain liabilities arising out of the performance of his duties to the Trust pursuant to an Indemnification Agreement between the Independent Trustee and the Trust. Additionally, in the normal course of business, the Trust enters into contracts with service providers that contain general indemnification clauses. The Trust's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred. However, based on experience, the Trust believes the risk of loss to be remote.
73
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of PowerShares Exchange-Traded Fund Trust:
In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of each of the portfolios indicated in Note 1 of the financial statements (each a portfolio of PowerShares Exchange-Traded Fund Trust, hereafter referred to as the "Trust") at April 30, 2010, and the results of each of their operations, the changes in each of their net assets, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Trust's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at April 30, 2010 by correspondence with the custodian and brokers, and the application of alternative auditing procedures where securities purchased had not been received, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
New York, New York
June 28, 2010
74
Tax Information
Form 1099-DIV, Form 1042-S and other year-end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisors.
The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state's requirement.
Each Fund designates the following amounts or, if subsequently determined to be different the maximum amount allowable for its fiscal year ended April 30, 2010:
Federal Income Tax Information
Qualified Dividend Income* | Corporate Dividend Received Deduction* | ||||||||||
Dynamic MagniQuant Portfolio | 100 | % | 100 | % | |||||||
Dynamic Market Portfolio | 100 | % | 100 | % | |||||||
Dynamic OTC Portfolio | 100 | % | 100 | % | |||||||
FTSE RAFI US 1000 Portfolio | 100 | % | 100 | % | |||||||
FTSE RAFI US 1500 Small-Mid Portfolio | 100 | % | 100 | % | |||||||
NXQ Portfolio | 0 | % | 0 | % |
* The above percentages are based on ordinary income dividends paid to shareholders during the Fund's fiscal year.
75
Proxy Results
A Special Meeting of Shareholders was held on March 22, 2010 to elect seven individuals to the Board of Trustees of PowerShares Exchange-Traded Fund Trust.
The results of the voting on the above matter were as follows:
Trustees | Votes For | Withheld/ Abstentions* | |||||||||
Ronn R. Bagge | 426,624,761 | 8,241,402 | |||||||||
Todd J. Barre | 426,876,044 | 7,990,119 | |||||||||
H. Bruce Bond | 426,681,223 | 8,184,940 | |||||||||
Kevin M. Carome | 425,386,415 | 9,479,748 | |||||||||
Marc M. Kole | 426,529,715 | 8,336,448 | |||||||||
Phillip M. Nussbaum | 426,531,618 | 8,334,545 | |||||||||
Donald H. Wilson | 426,691,769 | 8,174,394 |
* Includes Non-Votes.
76
Trustees and Officers
The Independent Trustees, the Trustees who are affiliated with the Adviser (the "Interested Trustees") and the executive officers of the Trust, their term of office and length of time served, their principal business occupations during at least the past five years, the number of portfolios in the Fund Complex overseen by each Trustee and the other directorships, if any, held by a Trustee, are shown below.
The Trustees and officers information is current as of April 30, 2010.
Name, Address, and Age of Independent Trustees | Position(s) Held with Trust | Term of Office and Length of Time Served* | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Independent Trustees | Other Directorships Held by Independent Trustees | ||||||||||||||||||
Ronn R. Bagge (52) YQA Capital Management, LLC 1755 S. Naperville Rd., Suite 100 Wheaton, IL 60187 | Trustee | Since 2003 | Founder and Principal, YQA Capital Management LLC (1998-Present); formerly Owner/CEO of Electronic Dynamic Balancing Co., Inc. (high-speed rotating equipment service provider) | 111 | None | ||||||||||||||||||
Todd J. Barre (52) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Trustee | Since 2010 | Vice President and Senior Investment Strategist (2001-2008), Director of Open Architecture and Trading (2007- 2008), Head of Fundamental Research (2004-2007) and Vice President and Senior Fixed Income Strategist (1994-2001), BMO Financial Group/Harris Private Bank | 111 | None | ||||||||||||||||||
* This is the date the Trustee began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected.
** Fund Complex includes all open-end funds (including all of their portfolios) advised by the Adviser. At April 30, 2010, the Fund Complex consisted of the Trust's 62 portfolios and three other exchange-traded fund trusts with 49 portfolios advised by the Adviser.
77
Trustees and Officers (Continued)
Name, Address, and Age of Independent Trustees | Position(s) Held with Trust | Term of Office and Length of Time Served* | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Independent Trustees | Other Directorships Held by Independent Trustees | ||||||||||||||||||
Marc M. Kole (49) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Trustee | Since 2006 | Chief Financial Officer, Hope Network (social services) (2008-Present); formerly Assistant Vice President and Controller, Priority Health (health insurance) (2005-2008); Senior Vice President of Finance, United Healthcare (2004-2005); Senior Vice President of Finance, Oxford Health Plans (2000-2004) | 111 | None | ||||||||||||||||||
Philip M. Nussbaum (48) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Trustee | Since 2003 | Chairman, Performance Trust Capital Partners (formerly Betzold, Berg, Nussbaum & Heitman, Inc.) (2004-Present); formerly Managing Director, Communication Institute (2002-2003); Executive Vice President of Finance, Betzold, Berg, Nussbaum & Heitman, Inc. (1994-1999) | 111 | None | ||||||||||||||||||
* This is the date the Trustee began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected.
** Fund Complex includes all open-end funds (including all of their portfolios) advised by the Adviser. At April 30, 2010, the Fund Complex consisted of the Trust's 62 portfolios and three other exchange-traded fund trusts with 49 portfolios advised by the Adviser.
78
Trustees and Officers (Continued)
Name, Address, and Age of Independent Trustees | Position(s) Held with Trust | Term of Office and Length of Time Served* | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Independent Trustees | Other Directorships Held by Independent Trustees | ||||||||||||||||||
Donald H. Wilson (50) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Trustee | Since 2006 | Chairman and Chief Executive Officer, Stone Pillar Advisers, Ltd. (2010-Present); formerly, Chief Operating Officer, AMCORE Financial, Inc. (bank holding company) (2007-2009); Executive Vice President and Chief Financial Officer, AMCORE Financial, Inc. (2006-2007); Senior Vice President and Treasurer, Marshall & Ilsley Corp. (bank holding company) (1995-2006) | 111 | None | ||||||||||||||||||
* This is the date the Trustee began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected.
** Fund Complex includes all open-end funds (including all of their portfolios) advised by the Adviser. At April 30, 2010, the Fund Complex consisted of the Trust's 62 portfolios and three other exchange-traded fund trusts with 49 portfolios advised by the Adviser.
79
Trustees and Officers (Continued)
Name, Address, and Age of Interested Trustees | Position(s) Held with Trust | Term of Office and Length of Time Served* | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Interested Trustees | Other Directorships Held by Interested Trustees | ||||||||||||||||||
H. Bruce Bond (46) Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Chairman of the Board and Trustee | Since 2003 | Chairman, Invesco PowerShares Capital Management LLC (2009-Present); formerly, Managing Director, Invesco PowerShares Capital Management LLC (2002-2009); Manager, Nuveen Investments (1998-2002) | 111 | None | ||||||||||||||||||
* This is the date the Interested Trustee began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected.
** Fund Complex includes all open-end funds (including all of their portfolios) advised by the Adviser. At April 30, 2010, the Fund Complex consists of the Trust's 62 portfolios and three other exchange-traded fund trusts with 49 portfolios advised by the Adviser.
80
Trustees and Officers (Continued)
Name, Address, and Age of Interested Trustees | Position(s) Held with Trust | Term of Office and Length of Time Served* | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Interested Trustees | Other Directorships Held by Interested Trustees | ||||||||||||||||||
Kevin M. Carome (53) Invesco Ltd. Two Peachtree Pointe 1555 Peachtree St., N.E., Suite 1800 Atlanta, GA 30309 | Trustee | Since 2010 | Senior Managing Director and General Counsel, Invesco Ltd. (2006-Present); formerly, Senior Vice President and General Counsel, Invesco Advisors, Inc. (2003-2005); Senior Vice President and General Counsel, Liberty Financial Companies, Inc. (2000-2001); General Counsel of certain investment management subsidiaries of Liberty Financial Companies, Inc. (1998-2000); Associate General Counsel, Liberty Financial Companies, Inc. (1993-1998); Associate, Ropes & Gray LLP | 111 | None | ||||||||||||||||||
* This is the date the Interested Trustee began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected.
** Fund Complex includes all open-end funds (including all of their portfolios) advised by the Adviser. At April 30, 2010, the Fund Complex consisted of the Trust's 62 portfolios and three other exchange-traded fund trusts with 49 portfolios advised by the Adviser.
81
Trustees and Officers (Continued)
Name, Address, and Age of Executive Officer | Position(s) Held with Trust | Length of Time Served* | Principal Occupation(s) During Past 5 Years | ||||||||||||
Andrew Schlossberg (35) Invesco Management Group, Inc. 11 Greenway Plaza Suite 100 Houston, Texas 77046 | President | Since 2009 | Managing Director, U.S. head of business strategy and chief marketing officer for Invesco Ltd. In the United States (2008-Present); formerly, Mr. Schlossberg served in multiple roles within Invesco, including head of corporate development, as well as global leadership roles in strategy and product development in the company's North American Institutional and Retirement divisions (2002-2007) | ||||||||||||
Bruce T. Duncan (55) Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Treasurer and Secretary | Treasurer since 2006; Secretary since 2008 | Senior Vice President of Finance, Invesco PowerShares Capital Management LLC (2005-Present); formerly Private Practice Attorney (2000-2005); Vice President of Investor Relations, The ServiceMaster Company (1994-2000); Vice President of Taxes, The ServiceMaster Company (1990-2000) | ||||||||||||
Benjamin Fulton (48) Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Vice President | Since 2009 | Executive Vice President – Global Product Development, Invesco PowerShares Capital Management LLC (2005-Present); formerly, principal of Clermont Consulting, a consulting firm focused on the creation and development of retail investment products (2003-2005); President and a founding partner of Claymore Securities, a financial services firm in the Chicago land area (2001-2003); Managing Director of Structured Investments at Nuveen Investments (1998-2001) | ||||||||||||
Peter Hubbard (28) Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Vice President | Since 2009 | Vice President and Director of Portfolio Management – Invesco PowerShares Capital Management LLC (2008- Present); formerly, Research Analyst, Invesco PowerShares Capital Management LLC (2005-2007); Research Analyst and Trader, Ritchie Capital, a hedge fund operator (2003-2005) | ||||||||||||
* This is the period for which the Officers began serving the Trust. Each Officer serves a one year term, until his successor is elected.
82
Trustees and Officers (Continued)
Name, Address, and Age of Executive Officer | Position(s) Held with Trust | Length of Time Served* | Principal Occupation(s) During Past 5 Years | ||||||||||||
David Warren (52) Invesco Trimark Ltd. 5140 Yonge Street Suite 900 Toronto, Ontario M2N 6X7 | Vice President | Since 2009 | Director, Executive Vice President and Chief Financial Officer, Invesco Trimark Ltd. and Chief Administrative Officer, North American Retail, Invesco Ltd (2007-Present); formerly, Director, Executive Vice President and Chief Financial Officer, Invesco Trimark Ltd. (2000-2006) | ||||||||||||
Todd Spillane (51) Invesco PowerShares Capital Management LLC 11 Greenway Plaza Suite 100 Houston, Texas 77046 | Chief Compliance Officer | Since 2010 | Senior Vice President, Invesco Management Group, Inc.; Chief Compliance Officer, INVESCO Private Capital Investments, Inc. (holding company), Invesco Private Capital, Inc. (registered investment adviser) and Invesco Senior Secured Management, Inc. (registered investment adviser); Chief Compliance Officer and Senior Vice President, Invesco Advisers, Inc. (formerly Invesco Institutional, (N.A.), Inc. – registered investment adviser) and Vice President, Invesco Distributors, Inc. and Invesco Investment Services, Inc.; formerly; Chief Compliance Officer, Invesco Global Asset Management (N.A.), Inc. – registered investment adviser) and Invesco Advisers, Inc. (formerly Invesco Institutional (N.A.), Inc.) (registered investment adviser); Senior Vice President and Chief Compliance Officer, Invesco Advisors, Inc., Invesco Capital Management, Inc. and Invesco Private Asset Management, Inc.; Vice President, Invesco Capital Management, Inc. and F und Management Company | ||||||||||||
Availability of Additional Information About the Trustees
The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request at 800.337.4246.
* This is the period for which the Officers began serving the Trust. Each Officer serves a one year term, until his successor is elected.
83
Board Considerations Regarding Continuation of Investment Advisory Agreement
At a meeting held on April 15, 2010, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust (the "Trust"), including the Independent Trustees, unanimously approved the continuation of the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the "Adviser") and the Trust for the following 57 series (each, a "Fund" and collectively, the "Funds"):
PowerShares Dynamic Market Portfolio
PowerShares Dynamic OTC Portfolio
PowerShares Golden Dragon Halter USX China Portfolio
PowerShares High Yield Equity Dividend
AchieversTM Portfolio
PowerShares WilderHill Clean Energy Portfolio
PowerShares Dynamic Large Cap Growth Portfolio
PowerShares Dynamic Large Cap Value Portfolio
PowerShares Dynamic Mid Cap Growth Portfolio
PowerShares Dynamic Mid Cap Value Portfolio
PowerShares Dynamic Small Cap Growth Portfolio
PowerShares Dynamic Small Cap Value Portfolio
PowerShares Dynamic Biotechnology & Genome Portfolio
PowerShares Dynamic Food & Beverage Portfolio
PowerShares Dynamic Leisure and Entertainment Portfolio
PowerShares Dynamic Media Portfolio
PowerShares Dynamic Networking Portfolio
PowerShares Dynamic Pharmaceuticals Portfolio
PowerShares Dynamic Semiconductors Portfolio
PowerShares Dynamic Software Portfolio
PowerShares Zacks Micro Cap Portfolio
PowerShares Aerospace & Defense Portfolio
PowerShares Dynamic Telecommunications & Wireless Portfolio
PowerShares Value Line Timeliness Select Portfolio
PowerShares Dividend AchieversTM Portfolio
PowerShares International Dividend AchieversTM Portfolio
PowerShares Zacks Small Cap Portfolio
PowerShares Dynamic Building and Construction Portfolio
PowerShares Dynamic Energy Exploration and Production Portfolio
PowerShares Dynamic Insurance Portfolio
PowerShares Dynamic Oil and Gas Services Portfolio
PowerShares Dynamic Retail Portfolio
PowerShares Dynamic Utilities Portfolio
PowerShares Lux Nanotech Portfolio
PowerShares FTSE RAFI US 1000 Portfolio
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio
PowerShares Water Resources Portfolio
PowerShares Dynamic Energy Sector Portfolio
PowerShares Dynamic Financial Sector Portfolio
PowerShares Dynamic Healthcare Sector Portfolio
PowerShares Dynamic Industrials Sector Portfolio
PowerShares Dynamic Large Cap Portfolio
PowerShares Dynamic MagniQuant Portfolio
PowerShares Dynamic Mid Cap Portfolio
PowerShares Dynamic Small Cap Portfolio
PowerShares Dynamic Technology Sector Portfolio
PowerShares Buyback Achievers(TM) Portfolio
PowerShares Cleantech Portfolio
PowerShares Dynamic Banking Portfolio
PowerShares Dynamic Basic Materials Sector Portfolio
PowerShares Dynamic Consumer Discretionary Sector Portfolio
PowerShares Dynamic Consumer Staples Sector Portfolio
PowerShares Dynamic Healthcare Services Portfolio
PowerShares Financial Preferred Portfolio
PowerShares Global Listed Private Equity Portfolio
PowerShares DWA Technical Leaders Portfolio
PowerShares Value Line Industry Rotation Portfolio
PowerShares WilderHill Progressive Energy Portfolio
The Trustees reviewed information from the Adviser describing: (i) the nature, extent and quality of services provided, (ii) the investment performance of the Funds and the Adviser, (iii) the costs of services provided and estimated profits realized by the Adviser, (iv) the extent to which economies of scale are realized as the Funds grow, (v) whether fee levels reflect any possible economies of scale for the benefit of Fund shareholders, (vi) comparisons of services rendered and amounts paid to other registered investment
84
Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)
companies and (vii) any benefits realized by the Adviser from its relationship with each Fund. Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the continuation of the Investment Advisory Agreement for each Fund. No single factor was determinative in the Board's analysis.
Nature, Extent and Quality of Services. In evaluating the nature, extent and quality of the Adviser's services, the Trustees reviewed information concerning the functions performed by the Adviser for the Funds, information describing the Adviser's current organization and projected staffing, including operations assistance provided by the Adviser's parent organization, Invesco Ltd., and the background and experience of the persons responsible for the day-to-day management of the Funds. The Trustees reviewed matters related to the Adviser's execution of portfolio transactions on behalf of the Funds. The Trustees also reviewed information on the performance of the Funds and the performance of their underlying indices through December 31, 2009. The Trustees also reviewed reports on the correlation and tracking error between the underlying index and each Fund's performance, including a report of Ibbotson Associates, a consultant to the Independent Trustees, that analyzed the reasons for tracking error for certain PowerShares funds, as well as the Adviser's analysis of the tracking error between each Fund and its underlying index. The Trustees noted that each Fund's correlation was within the targeted range set forth in the Trust's registration statement and that, for each Fund other than PowerShares Global Listed Private Equity Portfolio, the tracking error was within the targeted range set forth in the Trust's registration statement. The Trustees reviewed the reasons for PowerShares Global Listed Private Equity Portfolio's tracking error. The Trustees concluded that each Fund was correlated to its underlying index and that the tracking error for each Fund was within an acceptable range given that Fund's particular circumstances.
The Trustees also considered the services provided by the Adviser in its oversight of the Funds' administrator, custodian and transfer agent. They noted the significant amount of time and effort that had been devoted to this oversight function.
Based on their review, the Trustees concluded that the nature, extent and quality of services provided by the Adviser to the Funds under the Investment Advisory Agreement were appropriate and reasonable.
Fees, Expenses and Profitability. The Trustees reviewed and discussed the information provided by the Adviser on each Fund's expense ratio and advisory fee, as compared to information compiled by the Adviser from Lipper Inc. databases on the expense ratios of comparable exchange-traded funds ("ETFs"), open-end (non-ETF) index funds and open-end actively-managed funds. The Trustees noted that the annual advisory fee charged to each Fund is:
• 0.50% of the Fund's average net assets, for each Fund other than PowerShares High Yield Equity Dividend Achievers(TM) Portfolio, PowerShares Dividend Achievers(TM) Portfolio, PowerShares International Dividend Achievers(TM) Portfolio, PowerShares FTSE RAFI US 1000 Portfolio and PowerShares FTSE RAFI US 1500 Small-Mid Portfolio;
• 0.40% of the Fund's average net assets, for each of PowerShares High Yield Equity Dividend Achievers(TM) Portfolio, PowerShares Dividend Achievers(TM) Portfolio and PowerShares International Dividend Achievers(TM) Portfolio; and
• 0.29% of the Fund's average net assets, for each of PowerShares FTSE RAFI US 1000 Portfolio and PowerShares FTSE RAFI US 1500 Small-Mid Portfolio.
85
Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)
The Trustees also noted that the Adviser has agreed to waive a portion of its advisory fee and/or pay expenses (an "Expense Cap") to the extent necessary to prevent the annual operating expenses of each Fund from exceeding the percentage of that Fund's average daily net assets, at least until August 31, 2011, as set forth below:
• 0.60%, excluding interest expenses, brokerage commissions and other trading expenses, taxes and extraordinary expenses, for each of PowerShares Dynamic OTC Portfolio and PowerShares Dynamic Market Portfolio;
• 0.50%, excluding interest expenses, licensing fees, offering costs, brokerage commissions and other trading expenses, taxes and extraordinary expenses, for each of PowerShares High Yield Equity Dividend Achievers(TM) Portfolio, PowerShares Dividend Achievers(TM) Portfolio and PowerShares International Dividend Achievers(TM) Portfolio;
• 0.39%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes and extraordinary expenses, for each of PowerShares FTSE RAFI US 1000 Portfolio and PowerShares FTSE RAFI US 1500 Small-Mid Portfolio; and
• 0.60%, excluding interest expenses, licensing fees, offering costs, brokerage commissions and other trading expenses, taxes and extraordinary expenses, for each other Fund.
The Trustees noted that the Adviser represented that it does not provide investment advisory services to any clients other than the Funds and other ETFs overseen by the Board. The Trustees noted that each Fund's advisory fee was:
• higher than the median advisory fee of its ETF peer funds (except for the advisory fee of each of PowerShares Financial Preferred Portfolio, PowerShares Golden Dragon Halter USX China Portfolio and PowerShares International Dividend Achievers(TM) Portfolio, which was lower than the median advisory fee of its ETF peer funds); and
• higher than the median advisory fee of its open-end index peer funds (except for the advisory fee of each of PowerShares DWA Technical Leaders Portfolio, PowerShares Dynamic Banking Portfolio, PowerShares Dynamic Financial Sector Portfolio, PowerShares Dynamic Insurance Portfolio, PowerShares Dynamic Mid Cap Growth Portfolio, PowerShares Dynamic Mid Cap Value Portfolio, PowerShares Dynamic OTC Portfolio, PowerShares Financial Preferred Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Golden Dragon Halter USX China Portfolio, PowerShares International Dividend Achievers(TM) Portfolio, PowerShares Value Line Industry Rotation Portfolio and PowerShares Value Line Timeliness Select Portfolio, which was equal to or lower than the median advisory fee of its open-end index peer funds, and there was no comparable data for PowerShares Dynamic Basic Materials Sector Portfolio); but
• lower than the median advisory fee of its open-end actively-managed peer funds.
The Trustees determined that the advisory fees were reasonable, noting the complexity of the indices, which generally require more frequent rebalancing of the portfolios, the distinguishing factors of the
86
Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)
Funds, and the higher administrative, operational and management oversight costs for the Adviser. With respect to the Funds' expense ratios, the Trustees noted that the net expense ratio for each Fund was:
• higher than the median expense ratio of its ETF peer funds (except for the net expense ratio of each of PowerShares Dynamic OTC Portfolio, PowerShares FTSE RAFI US 1000 Portfolio and PowerShares International Dividend AchieversTM Portfolio, which was less than the median expense ratio of its ETF peer funds); and
• higher than the median expense ratio of its open-end index peer funds (except for the net expense ratio of each of PowerShares Dynamic Banking Portfolio, PowerShares Dynamic Financial Sector Portfolio, PowerShares Dynamic Insurance Portfolio, PowerShares Dynamic Mid Cap Growth Portfolio, PowerShares Dynamic Mid Cap Value Portfolio, PowerShares Dynamic Oil and Gas Services Portfolio, PowerShares Dynamic Small Cap Growth Portfolio, PowerShares Dynamic Telecommunications & Wireless Portfolio, PowerShares Dynamic Utilities Portfolio, PowerShares Financial Preferred Portfolio and PowerShares Global Listed Private Equity Portfolio, which was lower than the median expense ratio of its open-end index peer funds, and there was no comparable data for PowerShares Dynamic Basic Materials Sector Portfolio); but
• lower than the median expense ratio of its open-end actively-managed peer funds.
The Trustees noted that a significant component of the non-advisory fee expenses was the license fees paid by the Funds.
The Board concluded that the advisory fee and expense ratio of each Fund (giving effect to the Fund's Expense Cap) were reasonable and appropriate in light of the services provided.
In conjunction with their review of fees, the Trustees also considered information provided by the Adviser on the revenues received by the Adviser under the Investment Advisory Agreement for each Fund, as well as the fees waived and expenses reimbursed by the Adviser for the Funds. The Trustees reviewed information provided by the Adviser on its profitability as well as any profits or losses realized by the Adviser from its relationship to each Fund. The Trustees concluded that the estimated profitability to the Adviser of the advisory services provided to any of the Funds was not unreasonable.
Economies of Scale and Whether Fee Levels Reflect These Economies of Scale. The Trustees reviewed the information provided by the Adviser as to the extent to which economies of scale are realized as each Fund grows and whether fee levels reflect economies of scale for the benefit of shareholders. The Trustees reviewed each Fund's asset size, expense ratio and expense limitation agreed to by the Adviser. The Trustees noted that, for Funds whose expenses are higher than their respective Expense Caps, any reduction in that Fund's expenses would be enjoyed by the Adviser, but that Fund shareholders benefit from the lower expense ratio as a result of the Fund's Expense Cap. The Trustees also noted that the Excess Expense Agreement with the Trust provides that the Adviser is entitled to be reimbursed by each Fund, other than PowerShares Dynamic Market Portf olio and PowerShares Dynamic OTC Portfolio, for fees waived or expenses absorbed pursuant to the Expense Cap for a period of three years from the date the fee or expense was incurred, provided that no reimbursement would be made that would result in a Fund exceeding its Expense Cap. The Trustees considered whether the advisory fee rate for each Fund was reasonable in
87
Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)
relation to the asset size of that Fund, and concluded that the flat advisory fee was reasonable and appropriate, noting the Fund expenses the Adviser has borne as a result of the Expense Cap.
The Trustees noted that the Adviser had not identified any further benefits that it derived from its relationship with the Funds and had noted that it does not have any soft-dollar arrangements.
Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the continuation of the Investment Advisory Agreement for each Fund. No single factor was determinative in the Board's analysis.
88
Board Considerations Regarding Continuation of Investment Advisory Agreement
At a meeting held on April 15, 2010, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust (the "Trust"), including the Independent Trustees, unanimously approved the continuation of the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the "Adviser") and the Trust for the following five series (each, a "Fund" and collectively, the "Funds"):
PowerShares FTSE NASDAQ Small Cap Portfolio
PowerShares NASDAQ Internet Portfolio
PowerShares NASDAQ-100 BuyWrite Portfolio
PowerShares NXQ Portfolio
PowerShares S&P 500 BuyWrite Portfolio
The Trustees reviewed information from the Adviser describing: (i) the nature, extent and quality of services provided, (ii) the investment performance of the Funds and the Adviser, (iii) the costs of services provided and estimated profits realized by the Adviser, (iv) the extent to which economies of scale are realized as the Funds grow, (v) whether fee levels reflect any possible economies of scale for the benefit of Fund shareholders, (vi) comparisons of services rendered and amounts paid to other registered investment companies and (vii) any benefits realized by the Adviser from its relationship with each Fund. Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the continuation of the Investment Advisory Agreement for each Fund. No single factor was determinative in the Board's analysis.
Nature, Extent and Quality of Services. In evaluating the nature, extent and quality of the Adviser's services, the Trustees reviewed information concerning the functions performed by the Adviser for the Funds, information describing the Adviser's current organization and projected staffing, including operations assistance provided by the Adviser's parent organization, Invesco Ltd., and the background and experience of the persons responsible for the day-to-day management of the Funds. The Trustees reviewed matters related to the Adviser's oversight of the execution of portfolio transactions on behalf of the Funds. The Trustees also reviewed information on the performance of the Funds and the performance of their underlying indices through December 31, 2009. The Trustees also reviewed reports on the correlation and tracking error between the underlyin g index and each Fund's performance, including a report of Ibbotson Associates, a consultant to the Independent Trustees, that analyzed the reasons for tracking error for certain PowerShares funds, as well as the Adviser's analysis of the tracking error between each Fund and its underlying index. The Trustees noted that, in each case, the correlation and tracking error for each Fund was within the targeted range set forth in the Trust's registration statement. The Trustees concluded that each Fund was correlated to its underlying index and that the tracking error for each Fund was within an acceptable range given that Fund's particular circumstances.
The Trustees also considered the services provided by the Adviser in its oversight of the Funds' administrator, custodian and transfer agent. They noted the significant amount of time and effort that had been devoted to this oversight function.
Based on their review, the Trustees concluded that the nature, extent and quality of services provided by the Adviser to the Funds under the Investment Advisory Agreement were appropriate and reasonable.
Fees, Expenses and Profitability. The Trustees reviewed and discussed the information provided by the Adviser on each Fund's total expense ratio and unitary advisory fee, as compared to information compiled
89
Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)
by the Adviser from Lipper Inc. databases on the expense ratios of comparable exchange-traded funds ("ETFs"), open-end (non-ETF) index funds and open-end actively-managed funds. The Trustees noted that the annual unitary advisory fee is 0.70% for each of PowerShares FTSE NASDAQ Small Cap Portfolio and PowerShares NXQ Portfolio, 0.60% for PowerShares NASDAQ Internet Portfolio and 0.75% for each of PowerShares NASDAQ-100 BuyWrite Portfolio and PowerShares S&P 500 BuyWrite Portfolio, and that the Adviser pays all other expenses of each Fund, except that each Fund pays its brokerage expenses, taxes, interest and extraordinary expenses.
The Trustees noted that the Adviser represented that it does not provide investment advisory services to any clients other than the Funds and other ETFs overseen by the Board. The Trustees noted that: the advisory fee for PowerShares FTSE NASDAQ Small Cap Portfolio was higher than the median expense ratios of its ETF peer funds and open-end index peer funds, but lower than the median expense ratio of its open-end actively-managed peer funds; the advisory fee for PowerShares NASDAQ Internet Portfolio was equal to or lower than the median expense ratio of its ETF peer funds and open-end actively-managed peer funds, but higher than its open-end index peer funds; the advisory fee for each of PowerShares NASDAQ-100 BuyWrite Portfolio and PowerShares S&P 500 BuyWrite Portfolio was equal to or lower than the median expense ratio for each of its peer group funds; and the advisory fee for PowerShares NXQ Portfolio was higher than the median expense ratio of its ETF peer funds, but lower than the median expense ratios of its open-end index peer funds and open-end actively-managed peer funds. The Trustees noted that each Fund's advisory fee was reasonable because of the complexity of the indices, which generally require more frequent rebalancing of the portfolios, the distinguishing factors of the Funds and the higher administrative, operational and management oversight costs for the Adviser. The Trustees also noted that a portion of each Fund's advisory fee was attributable to a license fee payable out of the unitary fee charged to that Fund. The Board concluded that the unitary advisory fee charged to each Fund was reasonable and appropriate in light of the services provided.
In conjunction with their review of the unitary advisory fee, the Trustees also considered information provided by the Adviser on the revenues received by the Adviser under the Investment Advisory Agreement. The Trustees reviewed information provided by the Adviser on its profitability as well as any profits or losses realized by the Adviser from its relationship to each Fund. The Trustees concluded that the estimated profitability to the Adviser of the advisory services provided to any of the Funds was not unreasonable.
Economies of Scale and Whether Fee Levels Reflect These Economies of Scale. The Trustees reviewed the information provided by the Adviser as to the extent to which economies of scale are realized as each Fund grows and whether fee levels reflect economies of scale for the benefit of shareholders. The Trustees reviewed each Fund's asset size and expense ratio. The Trustees noted that any reduction in fixed costs associated with the management of the Funds would be enjoyed by the Adviser, but a unitary fee provides certainty in expenses for the Funds. The Trustees considered whether the advisory fee rate for each Fund was reasonable in relation to the asset size of that Fund, and concluded that the flat advisory fee was reasonable and appropriate.
The Trustees noted that the Adviser had not identified any further benefits that it derived from its relationship with the Funds and had noted that it does not have any soft-dollar arrangements.
Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the continuation of the Investment Advisory Agreement for each Fund. No single factor was determinative in the Board's analysis.
90
This page intentionally left blank
This page intentionally left blank
PROXY VOTING POLICIES AND PROCEDURES
A description of the Funds' proxy voting policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available, without charge and upon request, by calling (800) 337-4246. This information is also available on the Securities and Exchange Commission's ("Commission") website at www.sec.gov.
Information regarding how the Funds voted proxies for portfolio securities, if applicable, during the most recent 12-month period ended June 30, is also available, without charge and upon request, by (i) calling (800) 337-4246; or (ii) accessing the Funds' Form N-PX on the Commission's website at www.sec.gov.
QUARTERLY PORTFOLIOS
The Funds file their complete schedules of portfolio holdings with the Commission for the first and third quarters of each fiscal year on Form N-Q. The Funds' Form N-Qs are available on the Commission's website at www.sec.gov. The Funds' Form N-Qs may also be reviewed and copied at the Commission's Public Reference Room in Washington, D.C.; information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330.
301 West Roosevelt Road
Wheaton, IL 60187
800.983.0903
www.invescopowershares.com
© 2009 Invesco PowerShares Capital Management LLC P-PS-AR-2
2010 Annual Report to Shareholders
April 30, 2010
PowerShares Dynamic Large Cap Growth Portfolio
PowerShares Dynamic Large Cap Portfolio
PowerShares Dynamic Large Cap Value Portfolio
PowerShares Dynamic Mid Cap Growth Portfolio
PowerShares Dynamic Mid Cap Portfolio
PowerShares Dynamic Mid Cap Value Portfolio
PowerShares Dynamic Small Cap Growth Portfolio
PowerShares Dynamic Small Cap Portfolio
PowerShares Dynamic Small Cap Value Portfolio
PowerShares FTSE NASDAQ Small Cap Portfolio
PowerShares Zacks Micro Cap Portfolio
PowerShares Zacks Small Cap Portfolio
Table of Contents
The Market Environment | 2 | ||||||
Manager's Analysis | 4 | ||||||
Frequency Distribution of Discounts & Premiums | 28 | ||||||
Fees and Expenses | 30 | ||||||
Style Portfolios | |||||||
Schedules of Investments | |||||||
PowerShares Dynamic Large Cap Growth Portfolio | 32 | ||||||
PowerShares Dynamic Large Cap Portfolio | 33 | ||||||
PowerShares Dynamic Large Cap Value Portfolio | 35 | ||||||
PowerShares Dynamic Mid Cap Growth Portfolio | 36 | ||||||
PowerShares Dynamic Mid Cap Portfolio | 38 | ||||||
PowerShares Dynamic Mid Cap Value Portfolio | 40 | ||||||
PowerShares Dynamic Small Cap Growth Portfolio | 42 | ||||||
PowerShares Dynamic Small Cap Portfolio | 44 | ||||||
PowerShares Dynamic Small Cap Value Portfolio | 47 | ||||||
PowerShares FTSE NASDAQ Small Cap Portfolio | 49 | ||||||
PowerShares Zacks Micro Cap Portfolio | 59 | ||||||
PowerShares Zacks Small Cap Portfolio | 64 | ||||||
Statements of Assets and Liabilities | 68 | ||||||
Statements of Operations | 70 | ||||||
Statements of Changes in Net Assets | 72 | ||||||
Financial Highlights | 76 | ||||||
Notes to Financial Statements | 82 | ||||||
Report of Independent Registered Public Accounting Firm | 95 | ||||||
Tax Information | 96 | ||||||
Proxy Results | 97 | ||||||
Trustees and Officers | 98 | ||||||
Board Consideration Regarding Continuation of Investment Advisory Agreements | 104 | ||||||
The Market Environment
For the fiscal year ended April 30, 2010 (the "reporting period"), the U.S. markets recouped more than their previous year's losses. With the government's bank support programs firmly in place, the U.S. economy rebounded from its worst recession since the 1920s and U.S. equity markets rallied accordingly during the same period with the following performance: S&P 500® Index returned 38.82%, Dow Jones Industrial Index returned 38.61% and NASDAQ-100® Index returned 44.44%. As a result of the tremendous government assistance provided to U.S. banks, insurers, and automotive companies, consumer discretionary and financial stocks surged the most out of the ten S&P 500® sectors. Despite the sharp rise in U.S. equity prices, almost $23 billion in outflows occurred during this timeframe (based on Investment Company Institute statistics) as investors re-allocated their assets to income-g enerating products.
Interest rates remained at historically low levels, which supported bond prices during the reporting period. With the exception of U.S. Treasuries, fixed income markets enjoyed unprecedented gains in both total returns and inflows over the reporting period. Despite a newfound aversion to equity risk, investors put the most money to work in the riskiest bond sectors. As a result, higher beta bond sectors performed the best during the reporting period. For example, the Bank of America Merrill Lynch (BAML) U.S. High Yield Master II Index returned 44.20%, while the BAML U.S. Corporate, Government & Mortgage Index (prev. Domestic Master) returned 7.84% during the reporting period. Municipal bonds benefited from low supply and the establishment of the Build America Bond (BAB) program. As a result, the BAML Municipal Master Index returned 9.73% and the BAML BAB Index returned 9.60%. According to ICI statistics, domestic bond funds grew at a record pace during the reporting period, experiencing $353.5 billion in taxable inflows and $68.5 billion in municipal bond inflows.
2
This page intentionally left blank
Manager's Analysis
PowerShares Dynamic Large Cap Growth Portfolio (ticker: PWB)
The PowerShares Dynamic Large Cap Growth Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Dynamic Large Cap Growth IntellidexSM Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 36.15%. Over this same year the Index returned 37.35% while the S&P Citigroup Large Cap Growth Index returned 35.96%. The Fund benefited from positive performance in information technology, consumer discretionary and health care sectors. The Fund suffered negative performance in materials sector.
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Information Technology | 36.8 | ||||||
Consumer Discretionary | 18.5 | ||||||
Health Care | 13.5 | ||||||
Industrials | 11.6 | ||||||
Consumer Staples | 7.2 | ||||||
Materials | 5.8 | ||||||
Energy | 3.6 | ||||||
Financials | 3.0 | ||||||
Money Market Fund | 0.0 | ||||||
Other | (0.0 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Large-Cap Growth | 92.2 | ||||||
Large-Cap Value | 6.3 | ||||||
Mid-Cap Growth | 1.5 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
Apple, Inc. | 4.0 | ||||||
United Parcel Service, Inc. | 3.7 | ||||||
Schlumberger Ltd. | 3.6 | ||||||
Amazon.com, Inc. | 3.6 | ||||||
Intel Corp. | 3.5 | ||||||
Ford Motor Co. | 3.5 | ||||||
Cisco Systems, Inc. | 3.4 | ||||||
3M Co. | 3.4 | ||||||
Microsoft Corp. | 3.3 | ||||||
QUALCOMM, Inc. | 3.3 | ||||||
Total | 35.3 |
4
Manager's Analysis (Continued)
PowerShares Dynamic Large Cap Growth Portfolio (ticker: PWB)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) As of April 30, 2010
Avg. Ann.†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Year | 5 Year | Avg. Ann.†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Dynamic Large Cap Growth IntellidexSM Index | 37.35 | % | -3.97 | % | 2.13 | % | 1.13 | % | 5.95 | % | |||||||||||||
S&P Citigroup Large Cap Growth Index | 35.96 | % | -2.10 | % | 3.28 | % | 2.47 | % | 13.41 | % | |||||||||||||
Russell 1000® Growth Index | 38.16 | % | -1.93 | % | 4.05 | % | 3.16 | % | 17.45 | % | |||||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | 2.63 | % | 1.81 | % | 9.73 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | 36.15 | % | -4.63 | % | 1.45 | % | 0.44 | % | 2.27 | % | |||||||||||||
Share Price Return | 36.15 | % | -4.65 | % | 1.44 | % | 0.40 | % | 2.06 | % |
Fund Inception: March 3, 2005
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses during previous fiscal periods absent which, performance would have been lower. The Adviser has contractually agreed to waive and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.60%. In the Financial Highlights section of this Shareholder Report, the Fund's total net and total gross operating expense ratio was determined to be 0.61%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P Citigroup Large Cap Growth Index, Russell 1000® Growth Index and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 384, 691 and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
5
Manager's Analysis
PowerShares Dynamic Large Cap Portfolio (ticker: PJF)
The PowerShares Dynamic Large Cap Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Dynamic Large Cap IntellidexSM Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 34.56%. Over this same year the Index returned 35.59% while the S&P 500® Index returned 38.82%. The Fund benefited from positive performance in information technology, consumer discretionary and health care sectors. Fund performance was positive within each sector in which it was invested.
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Consumer Discretionary | 22.2 | ||||||
Information Technology | 21.3 | ||||||
Industrials | 12.9 | ||||||
Consumer Staples | 11.6 | ||||||
Health Care | 11.4 | ||||||
Financials | 10.0 | ||||||
Energy | 3.8 | ||||||
Materials | 3.7 | ||||||
Telecommunication Services | 1.6 | ||||||
Utilities | 1.4 | ||||||
Money Market Fund | 0.1 | ||||||
Other | (0.0 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Large-Cap Growth | 59.6 | ||||||
Large-Cap Value | 39.0 | ||||||
Mid-Cap Growth | 0.8 | ||||||
Mid-Cap Value | 0.6 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
Apple, Inc. | 2.0 | ||||||
American Express Co. | 1.9 | ||||||
Comcast Corp. | 1.9 | ||||||
Walt Disney Co. (The) | 1.8 | ||||||
United Parcel Service, Inc. | 1.8 | ||||||
General Electric Co. | 1.8 | ||||||
Amazon.com, Inc. | 1.8 | ||||||
Home Depot, Inc. (The) | 1.7 | ||||||
Intel Corp. | 1.7 | ||||||
Occidental Petroleum Corp. | 1.7 | ||||||
Total | 18.1 |
6
Manager's Analysis (Continued)
PowerShares Dynamic Large Cap Portfolio (ticker: PJF)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) As of April 30, 2010
Avg. Ann.†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg. Ann.†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
Dynamic Large Cap IntellidexSM Index | 35.59 | % | -3.03 | % | -0.49 | % | -1.68 | % | |||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | -2.64 | % | -8.75 | % | |||||||||||
Russell Top 200® Index | 36.32 | % | -5.20 | % | -2.89 | % | -9.53 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 34.56 | % | -3.74 | % | -1.20 | % | -4.05 | % | |||||||||||
Share Price Return | 34.64 | % | -3.75 | % | -1.23 | % | -4.12 | % |
Fund Inception: December 1, 2006
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.93%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.65% while the Fund's total gross operating expense ratio was 0.88%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P 500® Index and Russell Top 200® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 500 and 205 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
7
Manager's Analysis
PowerShares Dynamic Large Cap Value Portfolio (ticker: PWV)
The PowerShares Dynamic Large Cap Value Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Dynamic Large Cap Value IntellidexSM Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 36.69%. Over this same year, the Index returned 37.81%, while the S&P Citigroup Large Cap Value Index returned 41.93%. The Fund benefited from positive performance in health care, consumer discretionary and industrials sectors. Fund performance was positive within each sector in which it was invested.
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Health Care | 17.3 | ||||||
Energy | 14.7 | ||||||
Consumer Discretionary | 13.2 | ||||||
Industrials | 12.4 | ||||||
Consumer Staples | 11.7 | ||||||
Financials | 9.4 | ||||||
Telecommunication Services | 6.4 | ||||||
Utilities | 5.5 | ||||||
Information Technology | 4.8 | ||||||
Materials | 4.6 | ||||||
Other | (0.0 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Large-Cap Value | 87.0 | ||||||
Large-Cap Growth | 11.8 | ||||||
Mid-Cap Value | 1.2 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
ConocoPhillips | 3.8 | ||||||
American Express Co. | 3.7 | ||||||
Comcast Corp. | 3.7 | ||||||
General Electric Co. | 3.6 | ||||||
Home Depot, Inc. (The) | 3.5 | ||||||
Occidental Petroleum Corp. | 3.4 | ||||||
Altria Group, Inc. | 3.3 | ||||||
AT&T, Inc. | 3.3 | ||||||
Exxon Mobil Corp. | 3.2 | ||||||
Bristol-Myers Squibb Co. | 3.2 | ||||||
Total | 34.7 |
8
Manager's Analysis (Continued)
PowerShares Dynamic Large Cap Value Portfolio (ticker: PWV)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) As of April 30, 2010
Avg. Ann.†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Year | 5 Year | Avg. Ann.†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Dynamic Large Cap Value IntellidexSM Index | 37.81 | % | -1.57 | % | 7.29 | % | 6.43 | % | 37.90 | % | |||||||||||||
S&P Citigroup Large Cap Value Index | 41.93 | % | -8.10 | % | 1.85 | % | 1.04 | % | 5.46 | % | |||||||||||||
Russell 1000® Value Index | 42.28 | % | -7.66 | % | 1.93 | % | 1.24 | % | 6.60 | % | |||||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | 2.63 | % | 1.81 | % | 9.73 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | 36.69 | % | -2.28 | % | 6.54 | % | 5.68 | % | 32.97 | % | |||||||||||||
Share Price Return | 36.67 | % | -2.26 | % | 6.52 | % | 5.66 | % | 32.86 | % |
Fund Inception: March 3, 2005
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses during previous fiscal periods, absent which, performance during those fiscal periods would have been lower. The Adviser has contractually agreed to waive and/or pay certain Fund expenses through August 31, 2011. The Fund is currently subject to recapture, which may result in an increased expense ratio. According the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.61%. In the Financial Highlights section of this Shareholder Report, the Fund's total net operating expense ratio was determined to be 0.63% while the Fund's total g ross operating expense ratio was 0.60%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical Investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an Index. The index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P Citigroup Large Cap Value Index, Russell 1000® Value Index and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 346, 617 and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
9
Manager's Analysis
PowerShares Dynamic Mid Cap Growth Portfolio (ticker: PWJ)
The PowerShares Dynamic Mid Cap Growth Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Dynamic Mid Cap Growth IntellidexSM Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 37.89%. Over this same year the Index returned 39.04% while the S&P Citigroup Mid Cap Growth Index returned 48.03%. The Fund benefited from positive performance in information technology, health care and consumer discretionary sectors. Fund performance was positive within each sector in which it was invested.
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Information Technology | 34.8 | ||||||
Consumer Discretionary | 24.8 | ||||||
Health Care | 14.3 | ||||||
Industrials | 11.4 | ||||||
Financials | 5.4 | ||||||
Energy | 3.9 | ||||||
Consumer Staples | 3.6 | ||||||
Materials | 1.8 | ||||||
Money Market Fund | 0.1 | ||||||
Other | (0.1 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Mid-Cap Growth | 88.4 | ||||||
Small-Cap Growth | 5.1 | ||||||
Large-Cap Growth | 3.6 | ||||||
Mid-Cap Value | 2.9 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
Dolby Laboratories, Inc. | 3.7 | ||||||
Cummins, Inc. | 3.6 | ||||||
Waters Corp. | 3.4 | ||||||
FMC Technologies, Inc. | 3.4 | ||||||
International Game Technology | 3.4 | ||||||
Urban Outfitters, Inc. | 3.3 | ||||||
Varian Medical Systems, Inc. | 3.3 | ||||||
Scripps Networks Interactive, Inc. | 3.2 | ||||||
Advanced Micro Devices, Inc. | 3.2 | ||||||
Polo Ralph Lauren Corp. | 3.2 | ||||||
Total | 33.7 |
10
Manager's Analysis (Continued)
PowerShares Dynamic Mid Cap Growth Portfolio (ticker: PWJ)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) As of April 30, 2010
Avg. Ann.†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Year | 5 Year | Avg. Ann.†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Dynamic Mid Cap Growth IntellidexSM Index | 39.04 | % | -2.51 | % | 7.47 | % | 5.69 | % | 33.02 | % | |||||||||||||
S&P Citigroup Mid Cap Growth Index | 48.03 | % | 1.23 | % | 7.29 | % | 5.94 | % | 34.77 | % | |||||||||||||
Russell Midcap® Growth Index | 46.95 | % | -2.49 | % | 5.74 | % | 4.43 | % | 25.07 | % | |||||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | 2.63 | % | 1.81 | % | 9.73 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | 37.89 | % | -3.20 | % | 6.70 | % | 4.93 | % | 28.19 | % | |||||||||||||
Share Price Return | 38.02 | % | -3.21 | % | 6.69 | % | 4.89 | % | 27.96 | % |
Fund Inception: March 3, 2005
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses during previous fiscal periods, absent which, performance during those fiscal periods would have been lower. The Adviser has contractually agreed to waive and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.61%. In the Financial Highlights section of this Shareholder Report, the Fund's total net operating expense ratio was determined to be 0.63% while the Fund's total gross operating expense ratio was 0.66%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P Citigroup Mid Cap Growth Index, Russell MidCap® Growth Index and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 258, 548 and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
11
Manager's Analysis
PowerShares Dynamic Mid Cap Portfolio (ticker: PJG)
The PowerShares Dynamic Mid Cap Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Dynamic Mid Cap IntellidexSM Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 42.59%. Over this same year the Index returned 44.06% while the S&P Mid Cap 400® Index returned 48.92%. The Fund benefited from positive performance in consumer discretionary, information technology and health care sectors. Fund performance was positive within each sector in which it was invested.
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Information Technology | 23.5 | ||||||
Consumer Discretionary | 23.3 | ||||||
Industrials | 18.6 | ||||||
Health Care | 10.2 | ||||||
Consumer Staples | 10.2 | ||||||
Materials | 6.5 | ||||||
Utilities | 3.8 | ||||||
Financials | 2.0 | ||||||
Telecommunication Services | 1.6 | ||||||
Energy | 0.3 | ||||||
Money Market Fund | 0.2 | ||||||
Other | (0.2 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Mid-Cap Growth | 49.9 | ||||||
Mid-Cap Value | 36.0 | ||||||
Large-Cap Value | 5.9 | ||||||
Small-Cap Value | 3.8 | ||||||
Small-Cap Growth | 2.6 | ||||||
Large-Cap Growth | 1.8 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
SanDisk Corp. | 1.9 | ||||||
Whirlpool Corp. | 1.8 | ||||||
Dolby Laboratories Inc. | 1.8 | ||||||
Cummins, Inc. | 1.8 | ||||||
Limited Brands, Inc. | 1.8 | ||||||
Sigma-Aldrich Corp. | 1.7 | ||||||
Sherwin-Williams Co. (The) | 1.7 | ||||||
Waters Corp. | 1.7 | ||||||
McDermott International, Inc. | 1.7 | ||||||
Hershey Co. (The) | 1.6 | ||||||
Total | 17.5 |
12
Manager's Analysis (Continued)
PowerShares Dynamic Mid Cap Portfolio (ticker: PJG)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) As of April 30, 2010
Avg. Ann.†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg. Ann.†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
Dynamic Mid Cap IntellidexSM Index | 44.06 | % | -4.93 | % | -1.29 | % | -4.35 | % | |||||||||||
S&P Mid Cap 400® Index | 48.92 | % | -0.44 | % | 2.02 | % | 7.07 | % | |||||||||||
Russell Midcap® Index | 50.84 | % | -3.32 | % | -0.62 | % | -2.09 | % | |||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | -2.64 | % | -8.75 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 42.59 | % | -5.63 | % | -2.01 | % | -6.69 | % | |||||||||||
Share Price Return | 42.62 | % | -5.66 | % | -2.01 | % | -6.69 | % |
Fund Inception: December 1, 2006
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 1.17%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.65% while the Fund's total gross operating expense ratio was 1.11%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P Mid Cap 400® Index, Russell MidCap® Index and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 400, 796 and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
13
Manager's Analysis
PowerShares Dynamic Mid Cap Value Portfolio (ticker: PWP)
The PowerShares Dynamic Mid Cap Value Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Dynamic Mid Cap Value IntellidexSM Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 40.58%. Over this same year the Index returned 42.24% while the S&P Citigroup Mid Cap Value Index returned 49.78%. The Fund benefited from positive performance in consumer discretionary, health care and information technology sectors. Fund performance was positive within each sector in which it was invested. The Fund underperformed the Index due to negative trading slippage during the June rebalance.
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Consumer Discretionary | 22.9 | ||||||
Industrials | 20.4 | ||||||
Consumer Staples | 16.9 | ||||||
Information Technology | 12.3 | ||||||
Materials | 8.7 | ||||||
Utilities | 7.8 | ||||||
Financials | 6.4 | ||||||
Health Care | 4.0 | ||||||
Energy | 0.6 | ||||||
Money Market Fund | 0.1 | ||||||
Other | (0.1 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Mid-Cap Value | 70.7 | ||||||
Large-Cap Value | 12.3 | ||||||
Mid-Cap Growth | 9.9 | ||||||
Small-Cap Value | 6.5 | ||||||
Small-Cap Growth | 0.6 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
Principal Financial Group, Inc. | 3.6 | ||||||
Sherwin-Williams Co. (The) | 3.6 | ||||||
Macy's, Inc. | 3.5 | ||||||
Hershey Co. (The) | 3.4 | ||||||
Rockwell Collins, Inc. | 3.3 | ||||||
Dover Corp. | 3.3 | ||||||
Parker Hannifin Corp. | 3.3 | ||||||
Rockwell Automation, Inc. | 3.3 | ||||||
VF Corp. | 3.2 | ||||||
DTE Energy Co. | 3.2 | ||||||
Total | 33.7 |
14
Manager's Analysis (Continued)
PowerShares Dynamic Mid Cap Value Portfolio (ticker: PWP)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) As of April 30, 2010
Avg. Ann.†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Year | 5 Year | Avg. Ann.†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Dynamic Mid Cap Value IntellidexSM Index | 42.24 | % | -6.50 | % | 3.70 | % | 2.77 | % | 15.12 | % | |||||||||||||
S&P Citigroup Mid Cap Value Index | 49.78 | % | -2.13 | % | 6.37 | % | 5.17 | % | 29.78 | % | |||||||||||||
Russell Midcap® Value Index | 54.39 | % | -4.81 | % | 5.18 | % | 4.41 | % | 24.98 | % | |||||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | 2.63 | % | 1.81 | % | 9.73 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | 40.58 | % | -7.18 | % | 2.86 | % | 1.95 | % | 10.48 | % | |||||||||||||
Share Price Return | 40.88 | % | -7.20 | % | 2.88 | % | 1.91 | % | 10.27 | % |
Fund Inception: March 3, 2005
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.78%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.63% while the Fund's total gross operating expense ratio was 0.84%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P Citigroup Mid Cap Value Index, Russell MidCap® Value Index and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 285, 483 and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
15
Manager's Analysis
PowerShares Dynamic Small Cap Growth Portfolio (ticker: PWT)
The PowerShares Dynamic Small Cap Growth Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Dynamic Small Cap Growth IntellidexSM Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 35.60%. Over this same year the Index returned 37.53% while the S&P Citigroup Small Cap Growth Index returned 45.76%. The Fund benefited from positive performance in information technology, health care and consumer discretionary sectors. The Fund suffered negative performance in telecommunication services sector. The Fund underperformed the Index due to negative trading during the June rebalance.
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Information Technology | 36.1 | ||||||
Health Care | 17.6 | ||||||
Consumer Discretionary | 17.6 | ||||||
Industrials | 12.4 | ||||||
Financials | 8.9 | ||||||
Consumer Staples | 3.1 | ||||||
Materials | 2.3 | ||||||
Telecommunication Services | 1.7 | ||||||
Energy | 0.4 | ||||||
Money Market Fund | 0.1 | ||||||
Other | (0.2 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Small-Cap Growth | 97.7 | ||||||
Small-Cap Value | 2.3 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
LaSalle Hotel Properties | 2.8 | ||||||
RF Micro Devices, Inc. | 2.8 | ||||||
Under Armour, Inc. | 2.7 | ||||||
Lawson Software, Inc. | 2.7 | ||||||
Kaydon Corp. | 2.7 | ||||||
Ulta Salon Cosmetics & Fragrance, Inc. | 2.6 | ||||||
Hittite Microwave Corp. | 2.5 | ||||||
Dionex Corp. | 2.5 | ||||||
PAREXEL International Corp. | 2.4 | ||||||
Deckers Outdoor Corp. | 2.4 | ||||||
Total | 26.1 |
16
Manager's Analysis (Continued)
PowerShares Dynamic Small Cap Growth Portfolio (ticker: PWT)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) As of April 30, 2010
Avg. Ann.†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Year | 5 Year | Avg. Ann.†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Dynamic Small Cap Growth IntellidexSM Index | 37.53 | % | -7.70 | % | 1.18 | % | -0.46 | % | -2.35 | % | |||||||||||||
S&P Citigroup Small Cap Growth Index | 45.76 | % | -1.43 | % | 5.94 | % | 3.88 | % | 21.72 | % | |||||||||||||
Russell 2000® Growth Index | 45.20 | % | -1.93 | % | 6.06 | % | 3.75 | % | 20.97 | % | |||||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | 2.63 | % | 1.81 | % | 9.73 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | 35.60 | % | -8.54 | % | 0.46 | % | -1.16 | % | -5.86 | % | |||||||||||||
Share Price Return | 35.54 | % | -8.58 | % | 0.51 | % | -1.23 | % | -6.18 | % |
Fund Inception: March 3, 2005
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.86%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.63% while the Fund's total gross operating expense ratio was 0.94%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P Citigroup Small Cap Growth Index, Russell 2000® Growth Index and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 362, 1245 and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
17
Manager's Analysis
PowerShares Dynamic Small Cap Portfolio (ticker: PJM)
The PowerShares Dynamic Small Cap Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Dynamic Small Cap IntellidexSM Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 41.37%. Over this same year the Index returned 42.99% while the S&P Small Cap 600® Index returned 47.79%. The Fund benefited from positive performance in information technology, consumer discretionary and health care sectors. Fund performance was positive within each sector in which it was invested.
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Consumer Discretionary | 30.7 | ||||||
Information Technology | 21.5 | ||||||
Industrials | 13.4 | ||||||
Financials | 9.3 | ||||||
Health Care | 7.5 | ||||||
Materials | 5.1 | ||||||
Consumer Staples | 4.5 | ||||||
Energy | 4.4 | ||||||
Utilities | 2.5 | ||||||
Telecommunication Services | 1.1 | ||||||
Money Market Fund | 0.2 | ||||||
Other | (0.2 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Small-Cap Value | 59.2 | ||||||
Small-Cap Growth | 40.8 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
Dillard's, Inc. | 1.7 | ||||||
HSN, Inc. | 1.4 | ||||||
HNI Corp. | 1.3 | ||||||
Toro Co. (The) | 1.3 | ||||||
Jones Apparel Group, Inc. | 1.3 | ||||||
Kaydon Corp. | 1.3 | ||||||
Ulta Salon Cosmetics & Fragrance, Inc. | 1.3 | ||||||
Amkor Technology, Inc. | 1.3 | ||||||
Skechers U.S.A., Inc. | 1.3 | ||||||
NewMarket Corp. | 1.3 | ||||||
Total | 13.5 |
18
Manager's Analysis (Continued)
PowerShares Dynamic Small Cap Portfolio (ticker: PJM)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) As of April 30, 2010
Avg. Ann.†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg. Ann.†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
Dynamic Small Cap IntellidexSM Index | 42.99 | % | -6.02 | % | -3.56 | % | -11.63 | % | |||||||||||
S&P Small Cap 600® Index | 47.79 | % | -2.03 | % | -0.24 | % | -0.81 | % | |||||||||||
Russell 2000® Index | 48.95 | % | -2.79 | % | -1.29 | % | -4.35 | % | |||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | -2.64 | % | -8.75 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 41.37 | % | -6.86 | % | -4.44 | % | -14.35 | % | |||||||||||
Share Price Return | 41.52 | % | -6.89 | % | -4.47 | % | -14.43 | % |
Fund Inception: December 1, 2006
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 1.35%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.65% while the Fund's total gross operating expense ratio was 1.26%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P Small Cap 600® Index, Russell 2000® Index and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 600, 2000 and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
19
Manager's Analysis
PowerShares Dynamic Small Cap Value Portfolio (ticker: PWY)
The PowerShares Dynamic Small Cap Value Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Dynamic Small Cap Value IntellidexSM Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 42.03%. Over this same year the Index returned 43.71% while the S&P Citigroup Small Cap Value Index returned 49.78%. The Fund benefited from positive performance in consumer discretionary, industrials and information technology sectors. The Fund suffered negative performance in telecommunication services sector, during the fiscal year.
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Consumer Discretionary | 34.3 | ||||||
Financials | 12.4 | ||||||
Information Technology | 12.3 | ||||||
Industrials | 12.1 | ||||||
Materials | 8.3 | ||||||
Energy | 8.2 | ||||||
Utilities | 5.0 | ||||||
Consumer Staples | 4.2 | ||||||
Health Care | 3.2 | ||||||
Money Market Fund | 0.1 | ||||||
Other | (0.1 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Small-Cap Value | 92.1 | ||||||
Small-Cap Growth | 7.9 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
Dillard's, Inc. | 3.4 | ||||||
Jones Apparel Group, Inc. | 2.7 | ||||||
Skechers U.S.A., Inc. | 2.6 | ||||||
Hillenbrand, Inc. | 2.5 | ||||||
Columbia Sportswear Co. | 2.5 | ||||||
Berry Petroleum Co. | 2.5 | ||||||
Ruddick Corp. | 2.5 | ||||||
Sensient Technologies Corp. | 2.5 | ||||||
Rent-A-Center, Inc. | 2.4 | ||||||
Teledyne Technologies, Inc. | 2.4 | ||||||
Total | 26.0 |
20
Manager's Analysis (Continued)
PowerShares Dynamic Small Cap Value Portfolio (ticker: PWY)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) As of April 30, 2010
Avg. Ann.†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Year | 5 Year | Avg. Ann.†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Dynamic Small Cap Value IntellidexSM Index | 43.71 | % | -5.50 | % | 3.34 | % | 1.50 | % | 7.97 | % | |||||||||||||
S&P Citigroup Small Cap Value Index | 49.78 | % | -2.72 | % | 5.71 | % | 3.99 | % | 22.40 | % | |||||||||||||
Russell 2000® Value Index | 52.44 | % | -3.89 | % | 5.26 | % | 3.60 | % | 20.03 | % | |||||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | 2.63 | % | 1.81 | % | 9.73 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | 42.03 | % | -6.25 | % | 2.52 | % | 0.70 | % | 3.67 | % | |||||||||||||
Share Price Return | 42.11 | % | -6.29 | % | 2.55 | % | 0.65 | % | 3.41 | % |
Fund Inception: March 3, 2005
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.73%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.63% while the Fund's total gross operating expense ratio was 0.74%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P Citigroup Small Cap Value Index, Russell 2000® Value Index and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 467, 1279 and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
21
Manager's Analysis
PowerShares FTSE NASDAQ Small Cap Portfolio (ticker: PQSC)
The PowerShares FTSE NASDAQ Small Cap Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the FTSE NASDAQ Small Cap Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 50.37%. Over this same year the Index returned 50.77% while the Russell 2000® Index returned 48.95%. The Fund benefited from positive performance in information technology, health care and consumer discretionary sectors. Fund performance was positive within each sector in which it was invested.
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Information Technology | 26.2 | ||||||
Health Care | 19.3 | ||||||
Financials | 15.6 | ||||||
Industrials | 13.2 | ||||||
Consumer Discretionary | 12.7 | ||||||
Energy | 4.8 | ||||||
Consumer Staples | 3.5 | ||||||
Materials | 2.5 | ||||||
Telecommunication Services | 1.6 | ||||||
Utilities | 0.3 | ||||||
Other | 0.3 |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Small-Cap Growth | 63.4 | ||||||
Small-Cap Value | 32.7 | ||||||
Mid-Cap Growth | 2.9 | ||||||
Mid-Cap Value | 0.6 | ||||||
Large-Cap Growth | 0.3 | ||||||
Large-Cap Value | 0.1 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
InterMune, Inc. | 0.7 | ||||||
Brigham Exploration Co. | 0.7 | ||||||
Netlogic Microsystems, Inc. | 0.6 | ||||||
TiVo, Inc. | 0.6 | ||||||
Veeco Instruments, Inc. | 0.5 | ||||||
HSN, Inc. | 0.5 | ||||||
Incyte Corp. | 0.5 | ||||||
DryShips, Inc. | 0.4 | ||||||
Acorda Therapeutics, Inc. | 0.4 | ||||||
Atlas Air Worldwide Holdings, Inc. | 0.4 | ||||||
Total | 5.3 |
22
Manager's Analysis (Continued)
PowerShares FTSE NASDAQ Small Cap Portfolio (ticker: PQSC)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) As of April 30, 2010
Avg. Ann.†† | Fund Inception† | ||||||||||||||
1 Year | Avg. Ann.†† | Cumulative | |||||||||||||
Index | |||||||||||||||
FTSE NASDAQ Small Cap Index | 50.77 | % | -0.74 | % | -1.54 | % | |||||||||
Russell 2000® Index | 48.95 | % | 3.52 | % | 7.48 | % | |||||||||
S&P Small Cap 600® Index | 47.79 | % | 3.54 | % | 7.52 | % | |||||||||
S&P 500® Index | 38.82 | % | -2.83 | % | -5.80 | % | |||||||||
Fund | |||||||||||||||
NAV Return | 50.37 | % | -0.26 | % | -0.55 | % | |||||||||
Share Price Return | 50.43 | % | -0.36 | % | -0.74 | % |
Fund Inception: April 3, 2008
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. According to the Fund's current prospectus, the expense ratio of 0.70% is expressed as a unitary fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The Russell 2000® Index, S&P Small Cap 600® Index and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 2000, 600 and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
23
Manager's Analysis
PowerShares Zacks Micro Cap Portfolio (ticker: PZI)
The PowerShares Zacks Micro Cap Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Zacks Micro Cap IndexTM (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 45.49%. Over this same year the Index returned 44.97% while the Russell Microcap® Index returned 33.92%. The Fund benefited from positive performance in financials, consumer discretionary and information technology sectors. Fund performance was positive within each sector in which it was invested. The Fund had outperformed the Index due to positive trading during the June rebalance.
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Consumer Discretionary | 22.4 | ||||||
Financials | 20.9 | ||||||
Information Technology | 17.2 | ||||||
Industrials | 12.2 | ||||||
Energy | 9.2 | ||||||
Health Care | 7.7 | ||||||
Materials | 6.3 | ||||||
Consumer Staples | 3.1 | ||||||
Telecommunication Services | 0.6 | ||||||
Utilities | 0.4 | ||||||
Money Market Fund | 0.1 | ||||||
Other | (0.1 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Small-Cap Value | 56.3 | ||||||
Small-Cap Growth | 43.0 | ||||||
Mid-Cap Value | 0.5 | ||||||
Mid-Cap Growth | 0.2 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
Keryx Biopharmaceuticals, Inc. | 0.5 | ||||||
RAIT Financial Trust | 0.5 | ||||||
Federal Agricultural Mortgage Corp. | 0.5 | ||||||
Power-One, Inc. | 0.4 | ||||||
Blyth, Inc. | 0.4 | ||||||
Verso Paper Corp. | 0.4 | ||||||
Radio One, Inc. | 0.4 | ||||||
Air Transport Services Group, Inc. | 0.4 | ||||||
Gray Television, Inc. | 0.4 | ||||||
IDT Corp. | 0.3 | ||||||
Total | 4.2 |
24
Manager's Analysis (Continued)
PowerShares Zacks Micro Cap Portfolio (ticker: PZI)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) As of April 30, 2010
Avg. Ann.†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg. Ann.†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
Zacks Micro Cap IndexTM | 44.97 | % | -13.70 | % | -4.70 | % | -20.25 | % | |||||||||||
Russell Microcap® Index | 33.92 | % | -10.68 | % | -3.06 | % | -13.52 | % | |||||||||||
Dow Jones Micro Cap Index | 44.53 | % | -4.66 | % | 1.32 | % | 6.31 | % | |||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | 1.51 | % | 7.23 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 45.49 | % | -13.05 | % | -4.24 | % | -18.42 | % | |||||||||||
Share Price Return | 45.37 | % | -12.98 | % | -4.29 | % | -18.60 | % |
Fund Inception: August 18, 2005
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.86%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.70% while the Fund's total gross operating expense ratio was 0.93%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The Russell Micro Cap® Index, Dow Jones Micro Cap Index and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 1000, 250 and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
25
Manager's Analysis
PowerShares Zacks Small Cap Portfolio (ticker: PZJ)
The PowerShares Zacks Small Cap Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Zacks Small Cap IndexTM (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 41.41%. Over this same year the Index returned 42.55% while the S&P Small Cap 600® Index returned 47.79%. The Fund benefited from positive performance in information technology, industrials and consumer discretionary sectors. Fund performance was positive within each sector in which it was invested. The Fund had underperformed the Index due to negative trading during the June rebalance.
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Information Technology | 22.7 | ||||||
Industrials | 21.2 | ||||||
Consumer Discretionary | 15.2 | ||||||
Financials | 12.3 | ||||||
Health Care | 9.6 | ||||||
Materials | 7.3 | ||||||
Energy | 4.8 | ||||||
Consumer Staples | 3.3 | ||||||
Utilities | 2.9 | ||||||
Telecommunication Services | 0.7 | ||||||
Money Market Fund | 0.3 | ||||||
Other | (0.3 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Small-Cap Value | 50.4 | ||||||
Small-Cap Growth | 49.1 | ||||||
Mid-Cap Growth | 0.5 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
Integrated Silicon Solution, Inc. | 0.7 | ||||||
Greenbrier Cos., Inc. | 0.7 | ||||||
Travelzoo, Inc. | 0.6 | ||||||
Pozen, Inc. | 0.6 | ||||||
DineEquity, Inc. | 0.6 | ||||||
Quaker Chemical Corp. | 0.6 | ||||||
United Rentals, Inc. | 0.6 | ||||||
Dillard's, Inc. | 0.6 | ||||||
Stillwater Mining Co. | 0.6 | ||||||
Houston American Energy Corp. | 0.6 | ||||||
Total | 6.2 |
26
Manager's Analysis (Continued)
PowerShares Zacks Small Cap Portfolio (ticker: PZJ)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) As of April 30, 2010
Avg. Ann.†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg. Ann.†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
Zacks Small Cap IndexTM | 42.55 | % | -8.89 | % | -4.65 | % | -18.14 | % | |||||||||||
S&P Small Cap 600® Index | 47.79 | % | -2.03 | % | 1.45 | % | 6.18 | % | |||||||||||
Russell 2000® Index | 48.95 | % | -2.79 | % | 0.91 | % | 3.84 | % | |||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | 0.29 | % | 1.23 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 41.41 | % | -9.00 | % | -4.68 | % | -18.24 | % | |||||||||||
Share Price Return | 41.82 | % | -9.04 | % | -4.75 | % | -18.50 | % |
Fund Inception: February 16, 2006
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 1.09%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.70% while the Fund's total gross operating expense ratio was 1.21%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P Small Cap 600® Index, Russell 2000® Index and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 600, 2000 and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
27
Frequency Distribution of Discounts & Premiums
Since Inception through April 30, 2010
Closing Price Above NAV (bps) | |||||||||||||||||||||||||||||||||||||||
Ticker | Fund Name | Inception | Days | 0-24 | 25-49 | 50-99 | 100-149 | 150-199 | 200+ | ||||||||||||||||||||||||||||||
PWB | PowerShares Dynamic Large Cap Growth Portfolio | 03/03/05 | 1300 | 631 | 34 | 3 | 1 | 0 | 0 | ||||||||||||||||||||||||||||||
PJF | PowerShares Dynamic Large Cap Portfolio | 12/01/06 | 858 | 300 | 15 | 4 | 2 | 1 | 0 | ||||||||||||||||||||||||||||||
PWV | PowerShares Dynamic Large Cap Value Portfolio | 03/03/05 | 1300 | 701 | 33 | 11 | 1 | 0 | 1 | ||||||||||||||||||||||||||||||
PWJ | PowerShares Dynamic Mid Cap Growth Portfolio | 03/03/05 | 1300 | 534 | 19 | 6 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||
PJG | PowerShares Dynamic Mid Cap Portfolio | 12/01/06 | 858 | 349 | 27 | 1 | 1 | 1 | 1 | ||||||||||||||||||||||||||||||
PWP | PowerShares Dynamic Mid Cap Value Portfolio | 03/03/05 | 1300 | 515 | 23 | 5 | 1 | 0 | 2 | ||||||||||||||||||||||||||||||
PWT | PowerShares Dynamic Small Cap Growth Portfolio | 03/03/05 | 1300 | 549 | 50 | 6 | 4 | 0 | 2 | ||||||||||||||||||||||||||||||
PJM | PowerShares Dynamic Small Cap Portfolio | 12/01/06 | 858 | 302 | 28 | 5 | 1 | 0 | 0 | ||||||||||||||||||||||||||||||
PWY | PowerShares Dynamic Small Cap Value Portfolio | 03/03/05 | 1300 | 570 | 46 | 10 | 1 | 1 | 0 | ||||||||||||||||||||||||||||||
PQSC | PowerShares FTSE NASDAQ Small Cap Portfolio | 04/03/08 | 524 | 198 | 14 | 4 | 0 | 0 | 1 | ||||||||||||||||||||||||||||||
PZI | PowerShares Zacks Micro Cap Portfolio | 08/18/05 | 1183 | 381 | 50 | 14 | 0 | 1 | 0 | ||||||||||||||||||||||||||||||
PZJ | PowerShares Zacks Small Cap Portfolio | 02/16/06 | 1057 | 433 | 25 | 5 | 1 | 0 | 0 |
28
Closing Price Below NAV (bps) | |||||||||||||||||||||||||||
Ticker | -0-24 | -25-49 | -50-99 | -100-149 | -150-199 | -200+ | |||||||||||||||||||||
PWB | 607 | 21 | 3 | 0 | 0 | 0 | |||||||||||||||||||||
PJF | 527 | 7 | 2 | 0 | 0 | 0 | |||||||||||||||||||||
PWV | 533 | 14 | 6 | 0 | 0 | 0 | |||||||||||||||||||||
PWJ | 725 | 14 | 2 | 0 | 0 | 0 | |||||||||||||||||||||
PJG | 469 | 8 | 1 | 0 | 0 | 0 | |||||||||||||||||||||
PWP | 732 | 16 | 5 | 0 | 1 | 0 | |||||||||||||||||||||
PWT | 633 | 50 | 5 | 1 | 0 | 0 | |||||||||||||||||||||
PJM | 489 | 28 | 3 | 2 | 0 | 0 | |||||||||||||||||||||
PWY | 617 | 46 | 7 | 1 | 1 | 0 | |||||||||||||||||||||
PQSC | 288 | 19 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
PZI | 671 | 59 | 7 | 0 | 0 | 0 | |||||||||||||||||||||
PZJ | 568 | 21 | 3 | 1 | 0 | 0 |
29
Fees and Expenses
As a shareholder of a Fund of the PowerShares Exchange-Traded Fund Trust, you incur advisory fees and other Fund expenses. The expense examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds.
The example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended April 30, 2010.
Actual Expenses
The first line in the following table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading "Expenses Paid During the Six-Month Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line in the following table provides information about hypothetical account values and hypothetical expenses based on each Fund's actual expense ratio and an assumed annualized rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs such as sales charges and brokerage commissions. Therefore the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning Account Value November 1, 2009 | Ending Account Value April 30, 2010 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period (1) | ||||||||||||||||
PowerShares Dynamic Large Cap Growth Portfolio Actual | $ | 1,000.00 | $ | 1,129.36 | 0.60 | % | $ | 3.17 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.82 | 0.60 | % | $ | 3.01 | |||||||||||
PowerShares Dynamic Large Cap Portfolio Actual | $ | 1,000.00 | $ | 1,154.28 | 0.65 | % | $ | 3.47 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.57 | 0.65 | % | $ | 3.26 | |||||||||||
PowerShares Dynamic Large Cap Value Portfolio Actual | $ | 1,000.00 | $ | 1,176.95 | 0.62 | % | $ | 3.35 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.72 | 0.62 | % | $ | 3.11 | |||||||||||
PowerShares Dynamic Mid Cap Growth Portfolio Actual | $ | 1,000.00 | $ | 1,233.13 | 0.63 | % | $ | 3.49 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.67 | 0.63 | % | $ | 3.16 | |||||||||||
PowerShares Dynamic Mid Cap Portfolio Actual | $ | 1,000.00 | $ | 1,227.25 | 0.65 | % | $ | 3.59 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.57 | 0.65 | % | $ | 3.26 |
30
Fees and Expenses (Continued)
Beginning Account Value November 1, 2009 | Ending Account Value April 30, 2010 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period (1) | ||||||||||||||||
PowerShares Dynamic Mid Cap Value Portfolio Actual | $ | 1,000.00 | $ | 1,217.15 | 0.63 | % | $ | 3.46 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.67 | 0.63 | % | $ | 3.16 | |||||||||||
PowerShares Dynamic Small Cap Growth Portfolio Actual | $ | 1,000.00 | $ | 1,269.91 | 0.63 | % | $ | 3.55 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.67 | 0.63 | % | $ | 3.16 | |||||||||||
PowerShares Dynamic Small Cap Portfolio Actual | $ | 1,000.00 | $ | 1,271.64 | 0.65 | % | $ | 3.66 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.57 | 0.65 | % | $ | 3.26 | |||||||||||
PowerShares Dynamic Small Cap Value Portfolio Actual | $ | 1,000.00 | $ | 1,253.46 | 0.63 | % | $ | 3.52 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.67 | 0.63 | % | $ | 3.16 | |||||||||||
PowerShares FTSE NASDAQ Small Cap Portfolio Actual | $ | 1,000.00 | $ | 1,273.83 | 0.70 | % | $ | 3.95 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.32 | 0.70 | % | $ | 3.51 | |||||||||||
PowerShares Zacks Micro Cap Portfolio Actual | $ | 1,000.00 | $ | 1,326.20 | 0.70 | % | $ | 4.04 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.32 | 0.70 | % | $ | 3.51 | |||||||||||
PowerShares Zacks Small Cap Portfolio Actual | $ | 1,000.00 | $ | 1,278.30 | 0.70 | % | $ | 3.95 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.32 | 0.70 | % | $ | 3.51 |
(1) Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six months ended April 30, 2010. Expenses are calculated by multiplying the Fund's annualized expense ratio by the average account value for the period; then multiplying the result by 181 and then dividing the result by 365. Expense ratios for the most recent half-year may differ from expenses rations based on annualized data in the Financial Highlights.
31
Schedule of Investments
PowerShares Dynamic Large Cap Growth Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks—100.0% | |||||||||||
Consumer Discretionary—18.5% | |||||||||||
60,508 | Amazon.com, Inc.* | $ | 8,293,226 | ||||||||
73,788 | Bed Bath & Beyond, Inc.* | 3,391,297 | |||||||||
84,287 | Coach, Inc. | 3,518,982 | |||||||||
90,731 | DIRECTV, Class A* | 3,287,184 | |||||||||
610,350 | Ford Motor Co.* | 7,946,757 | |||||||||
98,750 | Johnson Controls, Inc. | 3,317,013 | |||||||||
57,074 | Kohl's Corp.* | 3,138,499 | |||||||||
45,423 | NIKE, Inc., Class B | 3,448,060 | |||||||||
119,226 | Staples, Inc. | 2,805,388 | |||||||||
134,053 | Starbucks Corp. | 3,482,697 | |||||||||
42,629,103 | |||||||||||
Consumer Staples—7.2% | |||||||||||
86,403 | Colgate-Palmolive Co. | 7,266,492 | |||||||||
50,363 | Costco Wholesale Corp. | 2,975,446 | |||||||||
51,076 | Estee Lauder Cos., Inc. (The), Class A | 3,366,930 | |||||||||
87,133 | Walgreen Co. | 3,062,725 | |||||||||
16,671,593 | |||||||||||
Energy—3.6% | |||||||||||
117,280 | Schlumberger Ltd. | 8,376,138 | |||||||||
Financials—3.0% | |||||||||||
30,176 | Franklin Resources, Inc. | 3,489,552 | |||||||||
60,576 | T. Rowe Price Group, Inc. | 3,483,726 | |||||||||
6,973,278 | |||||||||||
Health Care—13.5% | |||||||||||
132,003 | Abbott Laboratories | 6,753,273 | |||||||||
52,555 | Allergan, Inc. | 3,347,228 | |||||||||
53,953 | Baxter International, Inc. | 2,547,661 | |||||||||
39,419 | Becton, Dickinson and Co. | 3,010,429 | |||||||||
150,489 | Gilead Sciences, Inc.* | 5,969,899 | |||||||||
8,832 | Intuitive Surgical, Inc.* | 3,184,466 | |||||||||
48,559 | Medco Health Solutions, Inc.* | 2,861,096 | |||||||||
57,831 | Stryker Corp. | 3,321,813 | |||||||||
30,995,865 | |||||||||||
Industrials—11.6% | |||||||||||
89,401 | 3M Co. | 7,927,187 | |||||||||
41,523 | Danaher Corp. | 3,499,558 | |||||||||
64,860 | Emerson Electric Co. | 3,387,638 | |||||||||
67,465 | Illinois Tool Works, Inc. | 3,447,461 | |||||||||
121,998 | United Parcel Service, Inc., Class B | 8,434,942 | |||||||||
26,696,786 | |||||||||||
Information Technology—36.8% | |||||||||||
88,612 | Adobe Systems, Inc.* | 2,976,477 | |||||||||
35,025 | Apple, Inc.* | 9,145,728 | |||||||||
73,788 | Automatic Data Processing, Inc. | 3,199,448 | |||||||||
98,049 | Broadcom Corp., Class A | 3,381,710 | |||||||||
136,493 | CA, Inc. | 3,113,405 | |||||||||
294,514 | Cisco Systems, Inc.* | 7,928,317 |
Number of Shares | Value | ||||||||||
Common Stocks (Continued) | |||||||||||
63,813 | Cognizant Technology Solutions Corp., Class A* | $ | 3,265,949 | ||||||||
133,411 | eBay, Inc.* | 3,176,516 | |||||||||
175,568 | EMC Corp.* | 3,337,548 | |||||||||
13,600 | Google, Inc., Class A* | 7,145,984 | |||||||||
349,012 | Intel Corp. | 7,967,944 | |||||||||
250,025 | Microsoft Corp. | 7,635,764 | |||||||||
102,323 | NetApp, Inc.* | 3,547,538 | |||||||||
290,680 | Oracle Corp. | 7,511,171 | |||||||||
195,310 | QUALCOMM, Inc. | 7,566,309 | |||||||||
62,012 | VMware, Inc., Class A* | 3,822,420 | |||||||||
84,722,228 | |||||||||||
Materials—5.8% | |||||||||||
72,862 | Ecolab, Inc. | 3,558,580 | |||||||||
40,862 | Freeport-McMoRan Copper & Gold, Inc. | 3,086,307 | |||||||||
40,874 | Praxair, Inc. | 3,424,015 | |||||||||
104,599 | Southern Copper Corp. | 3,198,637 | |||||||||
13,267,539 | |||||||||||
Total Common Stocks (Cost $194,562,749) | 230,332,530 | ||||||||||
Money Market Fund—0.0% | |||||||||||
106,507 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $106,507) | 106,507 | |||||||||
Total Investments (Cost $194,669,256)—100.0% | 230,439,037 | ||||||||||
Liabilities in excess of other assets—(0.0%) | (104,728 | ) | |||||||||
Net Assets—100.0% | $ | 230,334,309 |
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
32
Schedule of Investments
PowerShares Dynamic Large Cap Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks—99.9% | |||||||||||
Consumer Discretionary—22.2% | |||||||||||
5,004 | Amazon.com, Inc.* | $ | 685,848 | ||||||||
6,103 | Bed Bath & Beyond, Inc.* | 280,494 | |||||||||
6,957 | Best Buy Co., Inc. | 317,239 | |||||||||
6,968 | Coach, Inc. | 290,914 | |||||||||
36,039 | Comcast Corp., Class A | 711,410 | |||||||||
7,501 | DIRECTV, Class A* | 271,761 | |||||||||
21,629 | Ford Motor Co.* | 281,610 | |||||||||
11,810 | Gap, Inc. (The) | 292,061 | |||||||||
18,990 | Home Depot, Inc. (The) | 669,398 | |||||||||
8,164 | Johnson Controls, Inc. | 274,229 | |||||||||
4,718 | Kohl's Corp.* | 259,443 | |||||||||
9,280 | McDonald's Corp. | 655,075 | |||||||||
7,425 | McGraw-Hill Cos., Inc. (The) | 250,371 | |||||||||
3,757 | NIKE, Inc., Class B | 285,194 | �� | ||||||||
6,934 | Omnicom Group, Inc. | 295,804 | |||||||||
9,857 | Staples, Inc. | 231,935 | |||||||||
11,083 | Starbucks Corp. | 287,936 | |||||||||
4,928 | Target Corp. | 280,255 | |||||||||
8,744 | Time Warner, Inc. | 289,252 | |||||||||
6,100 | TJX Cos., Inc. (The) | 282,674 | |||||||||
8,564 | Viacom, Inc., Class B* | 302,566 | |||||||||
18,966 | Walt Disney Co. (The) | 698,707 | |||||||||
7,530 | Yum! Brands, Inc. | 319,423 | |||||||||
8,513,599 | |||||||||||
Consumer Staples—11.6% | |||||||||||
11,238 | Coca-Cola Co. (The) | 600,671 | |||||||||
9,939 | Coca-Cola Enterprises, Inc. | 275,608 | |||||||||
3,062 | Colgate-Palmolive Co. | 257,514 | |||||||||
10,381 | ConAgra Foods, Inc. | 254,023 | |||||||||
4,223 | Estee Lauder Cos., Inc. (The), Class A | 278,380 | |||||||||
3,526 | General Mills, Inc. | 250,981 | |||||||||
5,532 | H.J. Heinz Co. | 259,285 | |||||||||
4,181 | Kimberly-Clark Corp. | 256,128 | |||||||||
12,097 | Philip Morris International, Inc. | 593,721 | |||||||||
9,363 | Procter & Gamble Co. (The) | 582,004 | |||||||||
7,205 | Walgreen Co. | 253,256 | |||||||||
10,958 | Wal-Mart Stores, Inc. | 587,897 | |||||||||
4,449,468 | |||||||||||
Energy—3.8% | |||||||||||
4,319 | Hess Corp. | 274,473 | |||||||||
5,842 | National Oilwell Varco, Inc. | 257,223 | |||||||||
7,420 | Occidental Petroleum Corp. | 657,857 | |||||||||
11,648 | Spectra Energy Corp. | 271,864 | |||||||||
1,461,417 | |||||||||||
Financials—10.0% | |||||||||||
5,135 | Aflac, Inc. | 261,680 | |||||||||
8,126 | Allstate Corp. (The) | 265,476 | |||||||||
15,514 | American Express Co. | 715,506 | |||||||||
6,343 | Ameriprise Financial, Inc. | 294,061 |
Number of Shares | Value | ||||||||||
Common Stocks (Continued) | |||||||||||
2,497 | Franklin Resources, Inc. | $ | 288,753 | ||||||||
3,790 | Goldman Sachs Group, Inc. (The) | 550,308 | |||||||||
14,806 | Progressive Corp. (The) | 297,453 | |||||||||
5,010 | T. Rowe Price Group, Inc. | 288,125 | |||||||||
4,828 | Travelers Cos., Inc. (The) | 244,973 | |||||||||
24,076 | U.S. Bancorp | 644,514 | |||||||||
3,850,849 | |||||||||||
Health Care—11.4% | |||||||||||
10,915 | Abbott Laboratories | 558,411 | |||||||||
4,346 | Allergan, Inc. | 276,797 | |||||||||
24,174 | Bristol-Myers Squibb Co. | 611,360 | |||||||||
7,475 | Cardinal Health, Inc. | 259,308 | �� | ||||||||
8,498 | Forest Laboratories, Inc.* | 231,656 | |||||||||
731 | Intuitive Surgical, Inc.* | 263,569 | |||||||||
9,405 | Johnson & Johnson | 604,742 | |||||||||
4,293 | McKesson Corp. | 278,229 | |||||||||
4,015 | Medco Health Solutions, Inc.* | 236,564 | |||||||||
4,782 | Stryker Corp. | 274,678 | |||||||||
5,207 | Thermo Fisher Scientific, Inc.* | 287,843 | |||||||||
7,499 | UnitedHealth Group, Inc. | 227,295 | |||||||||
4,429 | Zimmer Holdings, Inc.* | 269,770 | |||||||||
4,380,222 | |||||||||||
Industrials—12.9% | |||||||||||
7,393 | 3M Co. | 655,537 | |||||||||
4,451 | Caterpillar, Inc. | 303,069 | |||||||||
3,432 | Danaher Corp. | 289,249 | |||||||||
3,727 | Eaton Corp. | 287,575 | |||||||||
5,364 | Emerson Electric Co. | 280,162 | |||||||||
36,892 | General Electric Co. | 695,783 | |||||||||
6,323 | Honeywell International, Inc. | 300,153 | |||||||||
5,578 | Illinois Tool Works, Inc. | 285,036 | |||||||||
2,778 | L-3 Communications Holdings, Inc. | 259,937 | |||||||||
4,515 | Raytheon Co. | 263,224 | |||||||||
10,086 | United Parcel Service, Inc., Class B | 697,346 | |||||||||
8,630 | United Technologies Corp. | 646,819 | |||||||||
4,963,890 | |||||||||||
Information Technology—21.3% | |||||||||||
2,896 | Apple, Inc.* | 756,203 | |||||||||
6,103 | Automatic Data Processing, Inc. | 264,626 | |||||||||
11,286 | CA, Inc. | 257,434 | |||||||||
24,352 | Cisco Systems, Inc.* | 655,556 | |||||||||
5,276 | Cognizant Technology Solutions Corp., Class A* | 270,026 | |||||||||
14,403 | Corning, Inc. | 277,258 | |||||||||
11,031 | eBay, Inc.* | 262,648 | |||||||||
14,518 | EMC Corp.* | 275,987 | |||||||||
1,125 | Google, Inc., Class A* | 591,120 | |||||||||
11,666 | Hewlett-Packard Co. | 606,282 | |||||||||
28,860 | Intel Corp. | 658,874 | |||||||||
4,659 | International Business Machines Corp. | 601,011 |
See Notes to Financial Statements.
33
Schedule of Investments (Continued)
PowerShares Dynamic Large Cap Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks (Continued) | |||||||||||
20,672 | Microsoft Corp. | $ | 631,323 | ||||||||
8,461 | NetApp, Inc.* | 293,343 | |||||||||
24,036 | Oracle Corp. | 621,090 | |||||||||
15,342 | Symantec Corp.* | 257,285 | |||||||||
10,415 | Texas Instruments, Inc. | 270,894 | |||||||||
6,948 | Visa, Inc., Class A | 626,918 | |||||||||
8,177,878 | |||||||||||
Materials—3.7% | |||||||||||
7,530 | E.I. du Pont de Nemours & Co. | 299,995 | |||||||||
3,378 | Freeport-McMoRan Copper & Gold, Inc. | 255,140 | |||||||||
10,959 | International Paper Co. | 293,044 | |||||||||
4,126 | PPG Industries, Inc. | 290,347 | |||||||||
8,649 | Southern Copper Corp. | 264,486 | |||||||||
1,403,012 | |||||||||||
Telecommunication Services—1.6% | |||||||||||
23,880 | AT&T, Inc. | 622,313 | |||||||||
Utilities—1.4% | |||||||||||
7,782 | Edison International | 267,468 | |||||||||
3,342 | Entergy Corp. | 271,671 | |||||||||
539,139 | |||||||||||
Total Common Stocks (Cost $33,093,033) | 38,361,787 | ||||||||||
Money Market Fund—0.1% | |||||||||||
28,691 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $28,691) | 28,691 | |||||||||
Total Investments (Cost $33,121,724)—100.0% | 38,390,478 | ||||||||||
Liabilities in excess of other assets—(0.0%) | (14,156 | ) | |||||||||
Net Assets—100.0% | $ | 38,376,322 |
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
34
Schedule of Investments
PowerShares Dynamic Large Cap Value Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks—100.0% | |||||||||||
Consumer Discretionary—13.2% | |||||||||||
658,123 | Comcast Corp., Class A | $ | 12,991,348 | ||||||||
215,673 | Gap, Inc. (The) | 5,333,593 | |||||||||
346,781 | Home Depot, Inc. (The) | 12,224,030 | |||||||||
135,584 | McGraw-Hill Cos., Inc. (The) | 4,571,893 | |||||||||
126,624 | Omnicom Group, Inc. | 5,401,780 | |||||||||
156,389 | Viacom, Inc., Class B* | 5,525,223 | |||||||||
46,047,867 | |||||||||||
Consumer Staples—11.7% | |||||||||||
537,750 | Altria Group, Inc. | 11,394,922 | |||||||||
157,935 | Archer-Daniels-Midland Co. | 4,412,704 | |||||||||
181,487 | Coca-Cola Enterprises, Inc. | 5,032,634 | |||||||||
189,574 | ConAgra Foods, Inc. | 4,638,876 | |||||||||
220,897 | Philip Morris International, Inc. | 10,841,625 | |||||||||
87,819 | Reynolds American, Inc. | 4,691,291 | |||||||||
41,012,052 | |||||||||||
Energy—14.7% | |||||||||||
225,407 | ConocoPhillips | 13,341,840 | |||||||||
166,454 | Exxon Mobil Corp. | 11,293,904 | |||||||||
78,860 | Hess Corp. | 5,011,553 | |||||||||
106,670 | National Oilwell Varco, Inc. | 4,696,680 | |||||||||
135,498 | Occidental Petroleum Corp. | 12,013,253 | |||||||||
212,704 | Spectra Energy Corp. | 4,964,511 | |||||||||
51,321,741 | |||||||||||
Financials—9.4% | |||||||||||
148,382 | Allstate Corp. (The) | 4,847,640 | |||||||||
283,308 | American Express Co. | 13,066,165 | |||||||||
91,894 | Chubb Corp. (The) | 4,858,436 | |||||||||
270,375 | Progressive Corp. (The) | 5,431,834 | |||||||||
88,171 | Travelers Cos., Inc. (The) | 4,473,796 | |||||||||
32,677,871 | |||||||||||
Health Care—17.3% | |||||||||||
191,124 | Amgen, Inc.* | 10,962,873 | |||||||||
441,435 | Bristol-Myers Squibb Co. | 11,163,891 | |||||||||
136,500 | Cardinal Health, Inc. | 4,735,185 | |||||||||
155,185 | Forest Laboratories, Inc.* | 4,230,343 | |||||||||
171,740 | Johnson & Johnson | 11,042,882 | |||||||||
95,078 | Thermo Fisher Scientific, Inc.* | 5,255,912 | |||||||||
136,945 | UnitedHealth Group, Inc. | 4,150,803 | |||||||||
74,946 | WellPoint, Inc.* | 4,032,095 | |||||||||
80,882 | Zimmer Holdings, Inc.* | 4,926,522 | |||||||||
60,500,506 | |||||||||||
Industrials—12.4% | |||||||||||
81,278 | Caterpillar, Inc. | 5,534,219 | |||||||||
68,070 | Eaton Corp. | 5,252,281 | |||||||||
63,915 | General Dynamics Corp. | 4,880,550 | |||||||||
673,694 | General Electric Co. | 12,705,869 | |||||||||
115,461 | Honeywell International, Inc. | 5,480,934 |
Number of Shares | Value | ||||||||||
Common Stocks (Continued) | |||||||||||
50,723 | L-3 Communications Holdings, Inc. | $ | 4,746,151 | ||||||||
82,448 | Raytheon Co. | 4,806,718 | |||||||||
43,406,722 | |||||||||||
Information Technology—4.8% | |||||||||||
350,485 | Dell, Inc.* | 5,670,847 | |||||||||
213,025 | Hewlett-Packard Co. | 11,070,909 | |||||||||
16,741,756 | |||||||||||
Materials—4.6% | |||||||||||
137,515 | E.I. du Pont de Nemours & Co. | 5,478,598 | |||||||||
200,128 | International Paper Co. | 5,351,423 | |||||||||
75,347 | PPG Industries, Inc. | 5,302,168 | |||||||||
16,132,189 | |||||||||||
Telecommunication Services—6.4% | |||||||||||
436,094 | AT&T, Inc. | 11,364,610 | |||||||||
373,991 | Verizon Communications, Inc. | 10,804,600 | |||||||||
22,169,210 | |||||||||||
Utilities—5.5% | |||||||||||
142,107 | Edison International | 4,884,217 | |||||||||
61,037 | Entergy Corp. | 4,961,698 | |||||||||
110,616 | PG&E Corp. | 4,844,981 | |||||||||
94,304 | Sempra Energy | 4,637,871 | |||||||||
19,328,767 | |||||||||||
Total Investments (Cost $315,703,407)—100.0% | 349,338,681 | ||||||||||
Liabilities in excess of other assets—(0.0%) | (73,283 | ) | |||||||||
Net Assets—100.0% | $ | 349,265,398 |
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
35
Schedule of Investments
PowerShares Dynamic Mid Cap Growth Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.0% | |||||||||||
Consumer Discretionary—24.8% | |||||||||||
15,586 | Bally Technologies, Inc.* | $ | 718,826 | ||||||||
163,113 | Expedia, Inc. | 3,851,098 | |||||||||
17,801 | Fossil, Inc.* | 692,459 | |||||||||
33,249 | Gentex Corp. | 714,521 | |||||||||
49,679 | Goodyear Tire & Rubber Co. (The)* | 667,189 | |||||||||
15,822 | Guess?, Inc. | 725,755 | |||||||||
206,701 | International Game Technology | 4,357,257 | |||||||||
15,339 | J.Crew Group, Inc.* | 712,803 | |||||||||
15,370 | John Wiley & Sons, Inc., Class A | 649,690 | |||||||||
34,056 | Leggett & Platt, Inc. | 835,394 | |||||||||
9,770 | Netflix, Inc.* | 964,983 | |||||||||
910 | NVR, Inc.* | 653,426 | |||||||||
45,383 | Polo Ralph Lauren Corp. | 4,079,932 | |||||||||
91,653 | Scripps Networks Interactive, Inc., Class A | 4,155,547 | |||||||||
632,689 | Sirius XM Radio, Inc.* | 746,573 | |||||||||
22,720 | Tempur-Pedic International, Inc.* | 765,664 | |||||||||
19,019 | Thor Industries, Inc. | 679,168 | |||||||||
11,794 | Tractor Supply Co. | 792,203 | |||||||||
24,019 | TRW Automotive Holdings Corp.* | 773,652 | |||||||||
112,622 | Urban Outfitters, Inc.* | 4,224,451 | |||||||||
31,760,591 | |||||||||||
Consumer Staples—3.6% | |||||||||||
69,282 | Brown-Forman Corp., Class B | 4,030,826 | |||||||||
14,216 | NBTY, Inc.* | 578,307 | |||||||||
4,609,133 | |||||||||||
Energy—3.9% | |||||||||||
11,794 | Dril-Quip, Inc.* | 683,227 | |||||||||
64,583 | FMC Technologies, Inc.* | 4,371,623 | |||||||||
5,054,850 | |||||||||||
Financials—5.4% | |||||||||||
46,160 | Blackstone Group LP (The) | 645,317 | |||||||||
16,064 | Credit Acceptance Corp.* | 724,486 | |||||||||
33,814 | IntercontinentalExchange, Inc.* | 3,943,727 | |||||||||
36,628 | SEI Investments Co. | 822,665 | |||||||||
19,629 | Waddell & Reed Financial, Inc., Class A | 728,628 | |||||||||
6,864,823 | |||||||||||
Health Care—14.3% | |||||||||||
6,907 | Bio-Rad Laboratories, Inc., Class A* | 771,443 | |||||||||
51,630 | Bruker Corp.* | 789,423 | |||||||||
12,393 | Emergency Medical Services Corp., Class A* | 655,342 | |||||||||
69,325 | Hospira, Inc.* | 3,728,992 | |||||||||
12,221 | IDEXX Laboratories, Inc.* | 808,297 | |||||||||
12,062 | MEDNAX, Inc.* | 662,686 | |||||||||
6,495 | Mettler-Toledo International, Inc.* | 814,993 | |||||||||
13,020 | Perrigo Co. | 794,610 | |||||||||
17,983 | Sirona Dental Systems, Inc.* | 749,711 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
74,077 | Varian Medical Systems, Inc.* | $ | 4,176,461 | ||||||||
60,803 | Waters Corp.* | 4,377,208 | |||||||||
18,329,166 | |||||||||||
Industrials—11.4% | |||||||||||
17,526 | Armstrong World Industries, Inc.* | 763,257 | |||||||||
10,316 | Bucyrus International, Inc. | 650,011 | |||||||||
63,888 | Cummins, Inc. | 4,614,630 | |||||||||
23,542 | Graco, Inc. | 816,437 | |||||||||
16,176 | Landstar System, Inc. | 715,303 | |||||||||
13,529 | Lincoln Electric Holdings, Inc. | 810,928 | |||||||||
14,160 | MSC Industrial Direct Co., Class A | 771,579 | |||||||||
27,424 | Owens Corning* | 953,807 | |||||||||
30,367 | Rollins, Inc. | 660,482 | |||||||||
288,362 | Southwest Airlines Co. | 3,800,611 | |||||||||
14,557,045 | |||||||||||
Information Technology—34.8% | |||||||||||
458,610 | Advanced Micro Devices, Inc.* | 4,155,007 | |||||||||
148,492 | Altera Corp. | 3,765,757 | |||||||||
87,098 | Amphenol Corp., Class A | 4,024,799 | |||||||||
14,712 | ANSYS, Inc.* | 662,040 | |||||||||
98,469 | BMC Software, Inc.* | 3,875,740 | |||||||||
84,345 | Citrix Systems, Inc.* | 3,964,215 | |||||||||
68,100 | Dolby Laboratories, Inc., Class A* | 4,679,832 | |||||||||
11,567 | F5 Networks, Inc.* | 791,530 | |||||||||
28,582 | Jack Henry & Associates, Inc. | 729,413 | |||||||||
60,143 | JDS Uniphase Corp.* | 781,257 | |||||||||
13,066 | ManTech International Corp., Class A* | 588,362 | |||||||||
21,485 | MICROS Systems, Inc.* | 798,383 | |||||||||
31,555 | Molex, Inc. | 707,147 | |||||||||
20,412 | National Instruments Corp. | 705,847 | |||||||||
44,565 | National Semiconductor Corp. | 658,671 | |||||||||
223,926 | NVIDIA Corp.* | 3,520,117 | |||||||||
81,074 | ON Semiconductor Corp.* | 643,727 | |||||||||
129,328 | Red Hat, Inc.* | 3,863,027 | |||||||||
21,456 | Varian Semiconductor Equipment Associates, Inc.* | 706,761 | |||||||||
33,435 | VeriFone Holdings, Inc.* | 636,268 | |||||||||
25,898 | VeriSign, Inc.* | 706,238 | |||||||||
140,443 | Xilinx, Inc. | 3,620,620 | |||||||||
44,584,758 | |||||||||||
Materials—1.8% | |||||||||||
27,745 | Nalco Holding Co. | 686,134 | |||||||||
26,899 | Rockwood Holdings, Inc.* | 805,356 | |||||||||
34,656 | Temple-Inland, Inc. | 808,179 | |||||||||
2,299,669 | |||||||||||
Total Common Stocks and Other Equity Interests (Cost $105,607,176) | 128,060,035 |
See Notes to Financial Statements.
36
Schedule of Investments (Continued)
PowerShares Dynamic Mid Cap Growth Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Money Market Fund—0.1% | |||||||||||
114,467 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $114,467) | $ | 114,467 | ||||||||
Total Investments (Cost $105,721,643)—100.1% | 128,174,502 | ||||||||||
Liabilities in excess of other assets—(0.1%) | (130,188 | ) | |||||||||
Net Assets—100.0% | $ | 128,044,314 |
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
37
Schedule of Investments
PowerShares Dynamic Mid Cap Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.0% | |||||||||||
Consumer Discretionary—23.3% | |||||||||||
1,453 | Autoliv, Inc.* | $ | 79,552 | ||||||||
1,928 | Big Lots, Inc.* | 73,650 | |||||||||
3,575 | Brinker International, Inc. | 66,209 | |||||||||
2,256 | Carter's, Inc.* | 72,688 | |||||||||
15,869 | Expedia, Inc. | 374,667 | |||||||||
1,793 | Fossil, Inc.* | 69,748 | |||||||||
4,278 | Gannett Co., Inc. | 72,811 | |||||||||
3,338 | Gentex Corp. | 71,734 | |||||||||
1,589 | Guess?, Inc. | 72,887 | |||||||||
2,503 | Hanesbrands, Inc.* | 71,260 | |||||||||
1,540 | J.Crew Group, Inc.* | 71,564 | |||||||||
2,025 | Jarden Corp. | 65,043 | |||||||||
1,544 | John Wiley & Sons, Inc., Class A | 65,265 | |||||||||
16,571 | Limited Brands, Inc. | 444,103 | |||||||||
16,049 | Mattel, Inc. | 369,929 | |||||||||
9,554 | Nordstrom, Inc. | 394,867 | |||||||||
91 | NVR, Inc.* | 65,342 | |||||||||
2,377 | PetSmart, Inc. | 78,607 | |||||||||
1,489 | Phillips-Van Heusen Corp. | 93,822 | |||||||||
1,423 | Polaris Industries, Inc. | 84,199 | |||||||||
4,415 | Polo Ralph Lauren Corp. | 396,908 | |||||||||
7,215 | Ross Stores, Inc. | 404,040 | |||||||||
8,041 | Service Corp. International | 72,208 | |||||||||
5,568 | Sherwin-Williams Co. (The) | 434,694 | |||||||||
1,132 | Stanley Black & Decker, Inc. | 70,354 | |||||||||
2,288 | Tempur-Pedic International, Inc.* | 77,106 | |||||||||
1,908 | Thor Industries, Inc. | 68,135 | |||||||||
1,460 | Tiffany & Co. | 70,781 | |||||||||
2,413 | TRW Automotive Holdings Corp.* | 77,723 | |||||||||
1,387 | Tupperware Brands Corp. | 70,834 | |||||||||
10,951 | Urban Outfitters, Inc.* | 410,772 | |||||||||
4,561 | VF Corp. | 394,162 | |||||||||
1,552 | Warnaco Group, Inc. (The)* | 74,248 | |||||||||
4,199 | Whirlpool Corp. | 457,145 | |||||||||
2,824 | Wyndham Worldwide Corp. | 75,711 | |||||||||
5,912,768 | |||||||||||
Consumer Staples—10.2% | |||||||||||
6,740 | Brown-Forman Corp., Class B | 392,133 | |||||||||
5,755 | Clorox Co. (The) | 372,348 | |||||||||
1,989 | Corn Products International, Inc. | 71,604 | |||||||||
11,115 | Dr Pepper Snapple Group, Inc. | 363,794 | |||||||||
1,118 | Energizer Holdings, Inc.* | 68,310 | |||||||||
8,877 | Hershey Co. (The) | 417,308 | |||||||||
1,428 | NBTY, Inc.* | 58,091 | |||||||||
2,421 | Nu Skin Enterprises, Inc., Class A | 72,775 | |||||||||
14,161 | Safeway, Inc. | 334,200 | |||||||||
26,026 | Sara Lee Corp. | 370,090 | |||||||||
3,803 | Tyson Foods, Inc., Class A | 74,501 | |||||||||
2,595,154 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
Energy—0.3% | |||||||||||
2,256 | Alliance Holdings GP LP | $ | 72,688 | ||||||||
Financials—2.0% | |||||||||||
2,505 | American Financial Group, Inc. | 73,722 | |||||||||
1,603 | Commerce Bancshares, Inc. | 66,396 | |||||||||
1,641 | Erie Indemnity Co., Class A | 75,995 | |||||||||
2,316 | HCC Insurance Holdings, Inc. | 62,972 | |||||||||
1,364 | Reinsurance Group of America, Inc. | 70,424 | |||||||||
1,398 | Torchmark Corp. | 74,849 | |||||||||
1,975 | Waddell & Reed Financial, Inc., Class A | 73,312 | |||||||||
497,670 | |||||||||||
Health Care—10.2% | |||||||||||
12,589 | AmerisourceBergen Corp. | 388,371 | |||||||||
693 | Bio-Rad Laboratories, Inc., Class A* | 77,401 | |||||||||
5,190 | Bruker Corp.* | 79,355 | |||||||||
5,728 | DaVita, Inc.* | 357,599 | |||||||||
1,247 | Emergency Medical Services Corp., Class A* | 65,941 | |||||||||
8,894 | Health Management Associates, Inc., Class A* | 82,892 | |||||||||
6,749 | Hospira, Inc.* | 363,029 | |||||||||
4,814 | Laboratory Corp. of America Holdings* | 378,236 | |||||||||
1,619 | Lincare Holdings, Inc.* | 75,591 | |||||||||
1,211 | MEDNAX, Inc.* | 66,532 | |||||||||
651 | Mettler-Toledo International, Inc.* | 81,688 | |||||||||
1,314 | Perrigo Co. | 80,193 | |||||||||
1,807 | Sirona Dental Systems, Inc.* | 75,334 | |||||||||
5,915 | Waters Corp.* | 425,821 | |||||||||
2,597,983 | |||||||||||
Industrials—18.6% | |||||||||||
1,661 | Acuity Brands, Inc. | 75,094 | |||||||||
1,754 | Armstrong World Industries, Inc.* | 76,387 | |||||||||
1,893 | Carlisle Cos., Inc. | 71,423 | |||||||||
2,051 | Crane Co. | 73,713 | |||||||||
6,215 | Cummins, Inc. | 448,909 | |||||||||
1,571 | Donaldson Co., Inc. | 72,737 | |||||||||
7,803 | Dover Corp. | 407,473 | |||||||||
2,816 | EMCOR Group, Inc.* | 80,425 | |||||||||
2,158 | Harsco Corp. | 66,812 | |||||||||
1,383 | Hubbell, Inc., Class B | 64,268 | |||||||||
2,089 | IDEX Corp. | 70,190 | |||||||||
6,888 | ITT Corp. | 382,766 | |||||||||
1,338 | Joy Global, Inc. | 76,012 | |||||||||
15,446 | McDermott International, Inc.* | 423,375 | |||||||||
1,422 | MSC Industrial Direct Co., Class A | 77,485 | |||||||||
1,700 | Oshkosh Corp.* | 65,654 | |||||||||
1,644 | Pall Corp. | 64,099 | |||||||||
5,851 | Parker Hannifin Corp. | 404,772 | |||||||||
1,153 | Regal-Beloit Corp. | 72,950 | |||||||||
6,523 | Rockwell Automation, Inc. | 396,077 | |||||||||
6,271 | Rockwell Collins, Inc. | 407,615 |
See Notes to Financial Statements.
38
Schedule of Investments (Continued)
PowerShares Dynamic Mid Cap Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
28,048 | Southwest Airlines Co. | $ | 369,673 | ||||||||
1,794 | Thomas & Betts Corp.* | 75,240 | |||||||||
3,471 | W.W. Grainger, Inc. | 383,684 | |||||||||
4,706,833 | |||||||||||
Information Technology—23.5% | |||||||||||
14,442 | Altera Corp. | 366,249 | |||||||||
8,473 | Amphenol Corp., Class A | 391,537 | |||||||||
2,297 | Arrow Electronics, Inc.* | 70,059 | |||||||||
2,343 | Avnet, Inc.* | 74,906 | |||||||||
5,265 | AVX Corp. | 81,344 | |||||||||
9,579 | BMC Software, Inc.* | 377,029 | |||||||||
6,813 | Computer Sciences Corp.* | 356,933 | |||||||||
6,624 | Dolby Laboratories, Inc., Class A* | 455,201 | |||||||||
3,214 | EchoStar Corp., Class A* | 61,741 | |||||||||
1,161 | F5 Networks, Inc.* | 79,447 | |||||||||
7,317 | Fiserv, Inc.* | 373,826 | |||||||||
7,804 | Harris Corp. | 401,750 | |||||||||
1,705 | Hewitt Associates, Inc., Class A* | 69,888 | |||||||||
3,656 | Ingram Micro, Inc., Class A* | 66,393 | |||||||||
4,275 | Jabil Circuit, Inc. | 65,493 | |||||||||
2,866 | Jack Henry & Associates, Inc. | 73,140 | |||||||||
1,697 | Lender Processing Services, Inc. | 64,062 | |||||||||
1,922 | Lexmark International, Inc., Class A* | 71,210 | |||||||||
12,025 | LSI Corp.* | 72,391 | |||||||||
1,312 | ManTech International Corp., Class A* | 59,079 | |||||||||
38,948 | Micron Technology, Inc.* | 364,164 | |||||||||
2,159 | MICROS Systems, Inc.* | 80,228 | |||||||||
2,049 | National Instruments Corp. | 70,854 | |||||||||
8,142 | ON Semiconductor Corp.* | 64,647 | |||||||||
3,723 | Parametric Technology Corp.* | 69,211 | |||||||||
3,561 | QLogic Corp.* | 68,977 | |||||||||
2,308 | Red Hat, Inc.* | 68,940 | |||||||||
12,112 | SanDisk Corp.* | 483,148 | |||||||||
1,513 | Tech Data Corp.* | 64,908 | |||||||||
2,125 | Teradata Corp.* | 61,774 | |||||||||
7,069 | TIBCO Software, Inc.* | 80,587 | |||||||||
3,354 | VeriFone Holdings, Inc.* | 63,827 | |||||||||
2,598 | VeriSign, Inc.* | 70,847 | |||||||||
9,136 | Western Digital Corp.* | 375,398 | |||||||||
13,669 | Xilinx, Inc. | 352,387 | |||||||||
5,971,575 | |||||||||||
Materials—6.5% | |||||||||||
1,734 | Albemarle Corp. | 79,174 | |||||||||
1,376 | Ashland, Inc. | 81,955 | |||||||||
2,230 | Cabot Corp. | 72,564 | |||||||||
2,081 | Celanese Corp., Series A | 66,571 | |||||||||
1,240 | Domtar Corp.* | 87,842 | |||||||||
1,089 | Eastman Chemical Co. | 72,876 | |||||||||
1,539 | International Flavors & Fragrances, Inc. | 77,089 | |||||||||
825 | Lubrizol Corp. (The) | 74,531 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
2,698 | Rockwood Holdings, Inc.* | $ | 80,778 | ||||||||
3,361 | RPM International, Inc. | 74,211 | |||||||||
3,167 | Sealed Air Corp. | 68,090 | |||||||||
7,400 | Sigma-Aldrich Corp. | 438,820 | |||||||||
4,607 | Solutia, Inc.* | 81,083 | |||||||||
2,195 | Sonoco Products Co. | 72,720 | |||||||||
3,476 | Temple-Inland, Inc. | 81,060 | |||||||||
2,238 | W.R. Grace & Co.* | 64,656 | |||||||||
828 | Walter Energy, Inc. | 66,911 | |||||||||
1,640,931 | |||||||||||
Telecommunication Services—1.6% | |||||||||||
9,431 | NII Holdings, Inc.* | 400,063 | |||||||||
Utilities—3.8% | |||||||||||
10,062 | Constellation Energy Group, Inc. | 355,692 | |||||||||
2,437 | DPL, Inc. | 68,675 | |||||||||
8,126 | DTE Energy Co. | 391,429 | |||||||||
2,584 | UGI Corp. | 71,034 | |||||||||
1,968 | WGL Holdings, Inc. | 70,335 | |||||||||
957,165 | |||||||||||
Total Common Stocks and Other Equity Interests (Cost $20,895,570) | 25,352,830 | ||||||||||
Money Market Fund—0.2% | |||||||||||
40,980 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $40,980) | 40,980 | |||||||||
Total Investments (Cost $20,936,550)—100.2% | 25,393,810 | ||||||||||
Liabilities in excess of other assets—(0.2%) | (40,985 | ) | |||||||||
Net Assets—100.0% | $ | 25,352,825 |
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
39
Schedule of Investments
PowerShares Dynamic Mid Cap Value Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.0% | |||||||||||
Consumer Discretionary—22.9% | |||||||||||
5,061 | Autoliv, Inc.* | $ | 277,090 | ||||||||
12,468 | Brinker International, Inc. | 230,907 | |||||||||
7,880 | Carter's, Inc.* | 253,894 | |||||||||
14,907 | Gannett Co., Inc. | 253,717 | |||||||||
31,453 | Genuine Parts Co. | 1,346,188 | |||||||||
8,708 | Hanesbrands, Inc.* | 247,917 | |||||||||
7,046 | Jarden Corp. | 226,317 | |||||||||
66,287 | Macy's, Inc. | 1,537,858 | |||||||||
57,726 | Mattel, Inc. | 1,330,584 | |||||||||
4,935 | Polaris Industries, Inc. | 292,004 | |||||||||
28,018 | Service Corp. International | 251,602 | |||||||||
20,029 | Sherwin-Williams Co. (The) | 1,563,664 | |||||||||
3,945 | Stanley Black & Decker, Inc. | 245,182 | |||||||||
16,403 | VF Corp. | 1,417,547 | |||||||||
5,409 | Warnaco Group, Inc. (The)* | 258,767 | |||||||||
2,683 | Whirlpool Corp. | 292,098 | |||||||||
10,025,336 | |||||||||||
Consumer Staples—16.9% | |||||||||||
20,704 | Clorox Co. (The) | 1,339,549 | |||||||||
6,933 | Corn Products International, Inc. | 249,588 | |||||||||
39,980 | Dr Pepper Snapple Group, Inc. | 1,308,545 | |||||||||
3,898 | Energizer Holdings, Inc.* | 238,168 | |||||||||
31,925 | Hershey Co. (The) | 1,500,794 | |||||||||
50,938 | Safeway, Inc. | 1,202,137 | |||||||||
93,613 | Sara Lee Corp. | 1,331,177 | |||||||||
13,254 | Tyson Foods, Inc., Class A | 259,646 | |||||||||
7,429,604 | |||||||||||
Energy—0.6% | |||||||||||
7,862 | Alliance Holdings GP LP | 253,314 | |||||||||
Financials—6.4% | |||||||||||
8,729 | American Financial Group, Inc. | 256,894 | |||||||||
5,573 | Commerce Bancshares, Inc. | 230,833 | |||||||||
8,094 | HCC Insurance Holdings, Inc. | 220,076 | |||||||||
54,691 | Principal Financial Group, Inc. | 1,598,071 | |||||||||
4,752 | Reinsurance Group of America, Inc. | 245,346 | |||||||||
4,857 | Torchmark Corp. | 260,044 | |||||||||
2,811,264 | |||||||||||
Health Care—4.0% | |||||||||||
30,977 | Health Management Associates, Inc., Class A* | 288,705 | |||||||||
26,821 | Humana, Inc.* | 1,226,256 | |||||||||
5,389 | Kinetic Concepts, Inc.* | 233,344 | |||||||||
1,748,305 | |||||||||||
Industrials—20.4% | |||||||||||
28,045 | Dover Corp. | 1,464,510 | |||||||||
9,810 | EMCOR Group, Inc.* | 280,173 | |||||||||
2,254 | Flowserve Corp. | 258,263 | |||||||||
7,522 | Harsco Corp. | 232,881 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
4,822 | Hubbell, Inc., Class B | $ | 224,078 | ||||||||
24,780 | ITT Corp. | 1,377,025 | |||||||||
5,923 | Oshkosh Corp.* | 228,746 | |||||||||
21,048 | Parker Hannifin Corp. | 1,456,101 | |||||||||
4,003 | Regal-Beloit Corp. | 253,270 | |||||||||
23,469 | Rockwell Automation, Inc. | 1,425,038 | |||||||||
22,556 | Rockwell Collins, Inc. | 1,466,140 | |||||||||
6,254 | Thomas & Betts Corp.* | 262,293 | |||||||||
8,928,518 | |||||||||||
Information Technology—12.3% | |||||||||||
24,509 | Computer Sciences Corp.* | 1,284,027 | |||||||||
5,876 | DST Systems, Inc. | 249,436 | |||||||||
11,211 | EchoStar Corp., Class A* | 215,363 | |||||||||
26,321 | Fiserv, Inc.* | 1,344,740 | |||||||||
4,992 | Harris Corp. | 256,988 | |||||||||
14,886 | Jabil Circuit, Inc. | 228,054 | |||||||||
6,701 | Lexmark International, Inc., Class A* | 248,272 | |||||||||
5,273 | Tech Data Corp.* | 226,212 | |||||||||
32,860 | Western Digital Corp.* | 1,350,217 | |||||||||
5,403,309 | |||||||||||
Materials—8.7% | |||||||||||
6,022 | Albemarle Corp. | 274,965 | |||||||||
4,797 | Ashland, Inc. | 285,709 | |||||||||
4,180 | Ball Corp. | 222,418 | |||||||||
7,772 | Cabot Corp. | 252,901 | |||||||||
7,240 | Celanese Corp., Series A | 231,608 | |||||||||
4,319 | Domtar Corp.* | 305,958 | |||||||||
3,794 | Eastman Chemical Co. | 253,894 | |||||||||
5,363 | International Flavors & Fragrances, Inc. | 268,633 | |||||||||
2,858 | Lubrizol Corp. (The) | 258,192 | |||||||||
11,729 | RPM International, Inc. | 258,976 | |||||||||
11,053 | Sealed Air Corp. | 237,639 | |||||||||
3,955 | Silgan Holdings, Inc. | 238,605 | |||||||||
7,633 | Sonoco Products Co. | 252,881 | |||||||||
7,796 | W.R. Grace & Co.* | 225,226 | |||||||||
2,876 | Walter Energy, Inc. | 232,410 | |||||||||
3,800,015 | |||||||||||
Utilities—7.8% | |||||||||||
36,198 | Constellation Energy Group, Inc. | 1,279,599 | |||||||||
8,509 | DPL, Inc. | 239,784 | |||||||||
29,237 | DTE Energy Co. | 1,408,346 | |||||||||
9,015 | UGI Corp. | 247,823 | |||||||||
6,876 | WGL Holdings, Inc. | 245,748 | |||||||||
3,421,300 | |||||||||||
Total Common Stocks and Other Equity Interests (Cost $38,629,947) | 43,820,965 |
See Notes to Financial Statements.
40
Schedule of Investments (Continued)
PowerShares Dynamic Mid Cap Value Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Money Market Fund—0.1% | |||||||||||
43,158 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $43,158) | $ | 43,158 | ||||||||
Total Investments (Cost $38,673,105)—100.1% | 43,864,123 | ||||||||||
Liabilities in excess of other assets—(0.1%) | (45,633 | ) | |||||||||
Net Assets—100.0% | $ | 43,818,490 |
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
41
Schedule of Investments
PowerShares Dynamic Small Cap Growth Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.1% | |||||||||||
Consumer Discretionary—17.6% | |||||||||||
7,496 | 99 Cents Only Stores* | $ | 116,338 | ||||||||
7,187 | AnnTaylor Stores Corp.* | 155,958 | |||||||||
10,607 | ArvinMeritor, Inc.* | 162,499 | |||||||||
361 | Biglari Holdings, Inc.* | 141,241 | |||||||||
17,544 | Crocs, Inc.* | 169,475 | |||||||||
5,602 | Deckers Outdoor Corp.* | 787,529 | |||||||||
5,338 | Drew Industries, Inc.* | 136,920 | |||||||||
25,005 | DSW, Inc., Class A* | 755,151 | |||||||||
3,268 | Jo-Ann Stores, Inc.* | 144,184 | |||||||||
9,809 | La-Z-Boy, Inc.* | 127,909 | |||||||||
3,548 | Monro Muffler Brake, Inc. | 127,231 | |||||||||
20,243 | Pier 1 Imports, Inc.* | 167,612 | |||||||||
11,264 | RCN Corp.* | 165,356 | |||||||||
29,309 | Standard Pacific Corp.* | 187,871 | |||||||||
2,944 | Steven Madden Ltd.* | 170,634 | |||||||||
36,737 | Ulta Salon Cosmetics & Fragrance, Inc.* | 849,360 | |||||||||
25,840 | Under Armour, Inc., Class A* | 872,100 | |||||||||
4,897 | Universal Technical Institute, Inc.* | 117,332 | |||||||||
7,663 | Volcom, Inc.* | 182,686 | |||||||||
8,625 | Zumiez, Inc.* | 160,080 | |||||||||
5,697,466 | |||||||||||
Consumer Staples—3.1% | |||||||||||
2,614 | Boston Beer Co., Inc., Class A* | 149,024 | |||||||||
3,549 | Diamond Foods, Inc. | 151,578 | |||||||||
22,928 | United Natural Foods, Inc.* | 703,660 | |||||||||
1,004,262 | |||||||||||
Energy—0.4% | |||||||||||
5,845 | Legacy Reserves LP | 139,637 | |||||||||
Financials—8.9% | |||||||||||
22,863 | FBR Capital Markets Corp.* | 108,142 | |||||||||
5,828 | First Cash Financial Services, Inc.* | 128,565 | |||||||||
6,972 | Forestar Group, Inc.* | 157,149 | |||||||||
15,476 | GAMCO Investors, Inc., Class A | 712,051 | |||||||||
52,323 | Investors Bancorp, Inc.* | 727,813 | |||||||||
34,694 | LaSalle Hotel Properties REIT | 914,187 | |||||||||
8,267 | MarketAxess Holdings, Inc. | 129,957 | |||||||||
2,877,864 | |||||||||||
Health Care—17.6% | |||||||||||
37,204 | Align Technology, Inc.* | 631,724 | |||||||||
37,163 | American Medical Systems Holdings, Inc.* | 665,961 | |||||||||
7,607 | Angiodynamics, Inc.* | 121,712 | |||||||||
6,246 | Bio-Reference Labs, Inc.* | 146,156 | |||||||||
6,326 | Cantel Medical Corp. | 126,267 | |||||||||
13,681 | Dexcom, Inc.* | 149,807 | |||||||||
9,860 | Dionex Corp.* | 804,280 | |||||||||
19,116 | Exelixis, Inc.* | 110,490 | |||||||||
34,836 | Immucor, Inc.* | 745,839 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
16,920 | Integra LifeSciences Holdings Corp.* | $ | 768,676 | ||||||||
4,109 | LHC Group, Inc.* | 140,117 | |||||||||
3,002 | MWI Veterinary Supply, Inc.* | 125,934 | |||||||||
5,104 | Neogen Corp.* | 134,184 | |||||||||
4,942 | Par Pharmaceutical Cos., Inc.* | 134,126 | |||||||||
33,419 | PAREXEL International Corp.* | 788,020 | |||||||||
4,442 | RehabCare Group, Inc.* | 126,686 | |||||||||
5,719,979 | |||||||||||
Industrials—12.4% | |||||||||||
3,894 | Advisory Board Co. (The)* | 128,229 | |||||||||
28,223 | DigitalGlobe, Inc.* | 749,603 | |||||||||
6,534 | Harbin Electric, Inc.* | 143,160 | |||||||||
17,665 | HEICO Corp. | 760,831 | |||||||||
4,411 | II-VI, Inc.* | 158,178 | |||||||||
5,036 | Insituform Technologies, Inc., Class A* | 120,713 | |||||||||
14,382 | Interface, Inc., Class A | 188,117 | |||||||||
20,720 | Kaydon Corp. | 862,574 | |||||||||
4,221 | Raven Industries, Inc. | 128,150 | |||||||||
4,906 | Stanley, Inc.* | 155,177 | |||||||||
28,282 | Sykes Enterprises, Inc.* | 642,850 | |||||||||
4,037,582 | |||||||||||
Information Technology—36.1% | |||||||||||
7,420 | Acme Packet, Inc.* | 193,959 | |||||||||
39,940 | Acxiom Corp.* | 762,055 | |||||||||
28,926 | Blackbaud, Inc. | 666,744 | |||||||||
7,784 | Bottomline Technologies, Inc.* | 135,442 | |||||||||
14,316 | Brooks Automation, Inc.* | 139,151 | |||||||||
3,494 | Cabot Microelectronics Corp.* | 134,030 | |||||||||
17,323 | Cirrus Logic, Inc.* | 220,175 | |||||||||
3,890 | Coherent, Inc.* | 146,147 | |||||||||
16,084 | Deltek, Inc.* | 126,581 | |||||||||
6,307 | Diodes, Inc.* | 135,411 | |||||||||
37,163 | Euronet Worldwide, Inc.* | 592,007 | |||||||||
7,191 | ExlService Holdings, Inc.* | 114,481 | |||||||||
16,133 | Hittite Microwave Corp.* | 827,300 | |||||||||
26,253 | InterDigital, Inc.* | 726,420 | |||||||||
16,737 | Isilon Systems, Inc.* | 217,246 | |||||||||
111,860 | Lawson Software, Inc.* | 868,034 | |||||||||
39,770 | LTX-Credence Corp.* | 134,820 | |||||||||
4,895 | Manhattan Associates, Inc.* | 140,291 | |||||||||
7,593 | MicroStrategy, Inc., Class A* | 581,624 | |||||||||
5,674 | Multi-Fineline Electronix, Inc.* | 147,070 | |||||||||
4,879 | NETGEAR, Inc.* | 132,026 | |||||||||
8,478 | Netscout Systems, Inc.* | 123,101 | |||||||||
8,011 | Oplink Communications, Inc.* | 121,046 | |||||||||
4,551 | Park Electrochemical Corp. | 137,486 | |||||||||
23,686 | Plantronics, Inc. | 786,375 | |||||||||
3,439 | Power Integrations, Inc. | 132,333 | |||||||||
11,073 | Radiant Systems, Inc.* | 155,797 | |||||||||
159,952 | RF Micro Devices, Inc.* | 898,930 |
See Notes to Financial Statements.
42
Schedule of Investments (Continued)
PowerShares Dynamic Small Cap Growth Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
7,949 | RightNow Technologies, Inc.* | $ | 130,364 | ||||||||
35,800 | Solarwinds, Inc.* | 664,448 | |||||||||
15,441 | SonicWALL, Inc.* | 156,417 | |||||||||
58,068 | Sonus Networks, Inc.* | 150,396 | |||||||||
8,240 | Super Micro Computer, Inc.* | 116,843 | |||||||||
7,105 | Synchronoss Technologies, Inc.* | 145,155 | |||||||||
19,864 | Syntel, Inc. | 717,488 | |||||||||
17,203 | TriQuint Semiconductor, Inc.* | 129,711 | |||||||||
11,706,904 | |||||||||||
Materials—2.3% | |||||||||||
4,862 | AMCOL International Corp. | 139,734 | |||||||||
5,645 | Balchem Corp. | 146,431 | |||||||||
26,039 | Boise, Inc.* | 179,409 | |||||||||
10,897 | Stillwater Mining Co.* | 184,159 | |||||||||
5,599 | Zep, Inc. | 103,246 | |||||||||
752,979 | |||||||||||
Telecommunication Services—1.7% | |||||||||||
11,017 | AboveNet, Inc.* | 556,799 | |||||||||
Total Common Stocks and Other Equity Interests (Cost $28,430,563) | 32,493,472 | ||||||||||
Money Market Fund—0.1% | |||||||||||
30,060 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $30,060) | 30,060 | |||||||||
Total Investments (Cost $28,460,623)—100.2% | 32,523,532 | ||||||||||
Liabilities in excess of other assets—(0.2%) | (51,030 | ) | |||||||||
Net Assets—100.0% | $ | 32,472,502 |
Investment Abbreviations:
REIT – Real Estate Investment Trust
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
43
Schedule of Investments
PowerShares Dynamic Small Cap Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks—100.0% | |||||||||||
Consumer Discretionary—30.7% | |||||||||||
1,876 | American Greetings Corp., Class A | $ | 46,075 | ||||||||
3,067 | ArvinMeritor, Inc.* | 46,986 | |||||||||
3,075 | Asbury Automotive Group, Inc.* | 47,816 | |||||||||
2,341 | Big 5 Sporting Goods Corp. | 39,680 | |||||||||
104 | Biglari Holdings, Inc.* | 40,690 | |||||||||
1,254 | Bob Evans Farms, Inc. | 38,786 | |||||||||
2,586 | Brown Shoe Co., Inc. | 48,617 | |||||||||
1,020 | CEC Entertainment, Inc.* | 39,831 | |||||||||
8,233 | Cheesecake Factory, Inc. (The)* | 223,691 | |||||||||
936 | Children's Place Retail Stores, Inc. (The)* | 42,887 | |||||||||
8,616 | Collective Brands, Inc.* | 202,045 | |||||||||
4,248 | Columbia Sportswear Co. | 235,934 | |||||||||
2,040 | Cooper Tire & Rubber Co. | 43,289 | |||||||||
818 | Cracker Barrel Old Country Store, Inc. | 40,385 | |||||||||
4,936 | Crocs, Inc.* | 47,682 | |||||||||
17,127 | Dana Holding Corp.* | 228,817 | |||||||||
1,620 | Deckers Outdoor Corp.* | 227,740 | |||||||||
11,542 | Dillard's, Inc., Class A | 324,099 | |||||||||
7,832 | Dress Barn, Inc. (The)* | 216,790 | |||||||||
1,543 | Drew Industries, Inc.* | 39,578 | |||||||||
7,231 | DSW, Inc., Class A* | 218,376 | |||||||||
4,694 | E.W. Scripps Co., Class A* | 51,352 | |||||||||
3,516 | Entercom Communications Corp., Class A* | 51,193 | |||||||||
1,495 | Genesco, Inc.* | 49,769 | |||||||||
4,476 | Gymboree Corp.* | 219,906 | |||||||||
1,480 | Helen of Troy Ltd.* | 39,975 | |||||||||
9,712 | Hillenbrand, Inc. | 238,721 | |||||||||
8,990 | HSN, Inc.* | 270,869 | |||||||||
944 | Jo-Ann Stores, Inc.* | 41,649 | |||||||||
11,550 | Jones Apparel Group, Inc. | 251,328 | |||||||||
2,160 | Kirkland's, Inc.* | 48,103 | |||||||||
2,836 | La-Z-Boy, Inc.* | 36,981 | |||||||||
2,078 | Maidenform Brands, Inc.* | 47,420 | |||||||||
7,419 | McClatchy Co. (The), Class A* | 40,434 | |||||||||
9,116 | Men's Wearhouse, Inc. (The) | 215,411 | |||||||||
3,804 | Modine Manufacturing Co.* | 53,294 | |||||||||
5,855 | Pier 1 Imports, Inc.* | 48,479 | |||||||||
2,535 | RC2 Corp.* | 46,568 | |||||||||
3,258 | RCN Corp.* | 47,827 | |||||||||
8,755 | Rent-A-Center, Inc.* | 226,054 | |||||||||
4,002 | Retail Ventures, Inc.* | 43,302 | |||||||||
6,624 | Scholastic Corp. | 178,914 | |||||||||
4,645 | Select Comfort Corp.* | 52,581 | |||||||||
6,337 | Skechers U.S.A., Inc., Class A* | 243,024 | |||||||||
3,473 | Sonic Automotive, Inc., Class A* | 37,092 | |||||||||
2,688 | Stage Stores, Inc. | 40,992 | |||||||||
8,476 | Standard Pacific Corp.* | 54,331 | |||||||||
4,378 | Stein Mart, Inc.* | 41,503 | |||||||||
852 | Steven Madden Ltd.* | 49,382 | |||||||||
1,933 | Timberland Co. (The), Class A* | 41,559 | |||||||||
10,623 | Ulta Salon Cosmetics & Fragrance, Inc.* | 245,604 |
Number of Shares | Value | ||||||||||
Common Stocks (Continued) | |||||||||||
680 | UniFirst Corp. | $ | 33,232 | ||||||||
1,415 | Universal Technical Institute, Inc.* | 33,903 | |||||||||
1,395 | Valassis Communications, Inc.* | 45,603 | |||||||||
7,062 | Wolverine World Wide, Inc. | 216,168 | |||||||||
5,822,317 | |||||||||||
Consumer Staples—4.5% | |||||||||||
756 | Boston Beer Co., Inc., Class A* | 43,100 | |||||||||
2,456 | Chiquita Brands International, Inc.* | 36,938 | |||||||||
4,437 | Darling International, Inc.* | 42,107 | |||||||||
1,026 | Diamond Foods, Inc. | 43,821 | |||||||||
1,986 | Elizabeth Arden, Inc.* | 36,165 | |||||||||
2,635 | Inter Parfums, Inc. | 45,533 | |||||||||
4,453 | Prestige Brands Holdings, Inc.* | 43,372 | |||||||||
2,385 | Revlon, Inc., Class A* | 41,785 | |||||||||
6,645 | Ruddick Corp. | 234,834 | |||||||||
6,629 | United Natural Foods, Inc.* | 203,444 | |||||||||
1,291 | USANA Health Sciences, Inc.* | 46,799 | |||||||||
1,143 | WD-40 Co. | 40,268 | |||||||||
858,166 | |||||||||||
Energy—4.4% | |||||||||||
7,266 | Berry Petroleum Co., Class A | 235,200 | |||||||||
5,378 | Bristow Group, Inc.* | 208,182 | |||||||||
3,553 | Energy Partners Ltd.* | 48,570 | |||||||||
3,929 | Gulfport Energy Corp.* | 49,113 | |||||||||
2,097 | Stone Energy Corp.* | 34,181 | |||||||||
3,549 | TETRA Technologies, Inc.* | 43,617 | |||||||||
7,370 | World Fuel Services Corp. | 209,529 | |||||||||
828,392 | |||||||||||
Financials—9.3% | |||||||||||
4,064 | American Equity Investment Life Holding Co. | 42,753 | |||||||||
2,077 | AMERISAFE, Inc.* | 35,517 | |||||||||
2,525 | AmTrust Financial Services, Inc. | 34,416 | |||||||||
2,681 | Calamos Asset Management, Inc., Class A | 33,378 | |||||||||
5,081 | Cash America International, Inc. | 188,302 | |||||||||
2,946 | Dime Community Bancshares | 37,562 | |||||||||
1,812 | EZCORP, Inc., Class A* | 37,527 | |||||||||
1,685 | First Cash Financial Services, Inc.* | 37,171 | |||||||||
3,719 | First Financial Bankshares, Inc. | 198,892 | |||||||||
4,475 | GAMCO Investors, Inc., Class A | 205,895 | |||||||||
9,184 | International Bancshares Corp. | 221,977 | |||||||||
15,130 | Investors Bancorp, Inc.* | 210,458 | |||||||||
2,391 | MarketAxess Holdings, Inc. | 37,587 | |||||||||
5,051 | Meadowbrook Insurance Group, Inc. | 39,903 | |||||||||
2,274 | Nelnet, Inc., Class A | 45,389 | |||||||||
12,835 | OneBeacon Insurance Group Ltd., Class A | 208,184 | |||||||||
962 | Safety Insurance Group, Inc. | 35,873 | |||||||||
2,206 | Selective Insurance Group, Inc. | 36,862 | |||||||||
5,911 | TrustCo Bank Corp. NY | 39,308 | |||||||||
855 | World Acceptance Corp.* | 30,164 | |||||||||
1,757,118 |
See Notes to Financial Statements.
44
Schedule of Investments (Continued)
PowerShares Dynamic Small Cap Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks (Continued) | |||||||||||
Health Care—7.5% | |||||||||||
1,732 | AmSurg Corp., Class A* | $ | 35,887 | ||||||||
1,806 | Bio-Reference Labs, Inc.* | 42,260 | |||||||||
1,829 | Cantel Medical Corp. | 36,507 | |||||||||
3,636 | Chemed Corp. | 200,016 | |||||||||
5,529 | Exelixis, Inc.* | 31,958 | |||||||||
1,290 | Gentiva Health Services, Inc.* | 36,997 | |||||||||
1,943 | Healthspring, Inc.* | 34,197 | |||||||||
10,074 | Immucor, Inc.* | 215,684 | |||||||||
4,893 | Integra LifeSciences Holdings Corp.* | 222,289 | |||||||||
1,311 | Invacare Corp. | 34,650 | |||||||||
4,646 | Magellan Health Services, Inc.* | 196,108 | |||||||||
8,655 | Medicis Pharmaceutical Corp., Class A | 219,664 | |||||||||
869 | MWI Veterinary Supply, Inc.* | 36,455 | |||||||||
2,041 | Odyssey HealthCare, Inc.* | 42,514 | |||||||||
1,430 | Par Pharmaceutical Cos., Inc.* | 38,810 | |||||||||
1,423,996 | |||||||||||
Industrials—13.4% | |||||||||||
4,299 | A.O. Smith Corp. | 221,957 | |||||||||
686 | Allegiant Travel Co.* | 35,281 | |||||||||
682 | Amerco, Inc.* | 42,591 | |||||||||
2,503 | Apogee Enterprises, Inc. | 34,391 | |||||||||
1,595 | ATC Technology Corp.* | 32,602 | |||||||||
3,051 | Comfort Systems USA, Inc. | 42,958 | |||||||||
802 | Consolidated Graphics, Inc.* | 33,612 | |||||||||
1,918 | Cornell Cos., Inc.* | 52,745 | |||||||||
1,992 | Deluxe Corp. | 41,772 | |||||||||
1,191 | Dollar Thrifty Automotive Group, Inc.* | 52,392 | |||||||||
1,570 | EnerSys* | 40,632 | |||||||||
2,328 | Ennis, Inc. | 43,045 | |||||||||
3,063 | Gibraltar Industries, Inc.* | 46,006 | |||||||||
4,596 | Hawaiian Holdings, Inc.* | 32,632 | |||||||||
8,193 | HNI Corp. | 254,311 | |||||||||
1,275 | II-VI, Inc.* | 45,722 | |||||||||
2,187 | John Bean Technologies Corp. | 40,175 | |||||||||
1,493 | Kaman Corp. | 40,923 | |||||||||
5,992 | Kaydon Corp. | 249,447 | |||||||||
1,297 | Layne Christensen Co.* | 35,512 | |||||||||
1,105 | M&F Worldwide Corp.* | 33,879 | |||||||||
1,220 | Raven Industries, Inc. | 37,039 | |||||||||
1,419 | Stanley, Inc.* | 44,883 | |||||||||
1,501 | Sykes Enterprises, Inc.* | 34,118 | |||||||||
1,962 | TAL International Group, Inc. | 50,992 | |||||||||
5,170 | Teledyne Technologies, Inc.* | 225,412 | |||||||||
4,423 | Toro Co. (The) | 251,846 | |||||||||
3,409 | United Stationers, Inc.* | 208,699 | |||||||||
6,678 | Watts Water Technologies, Inc., Class A | 236,935 | |||||||||
2,542,509 | |||||||||||
Information Technology—21.5% | |||||||||||
11,550 | Acxiom Corp.* | 220,374 | |||||||||
32,345 | Amkor Technology, Inc.* | 243,881 |
Number of Shares | Value | ||||||||||
Common Stocks (Continued) | |||||||||||
9,834 | Benchmark Electronics, Inc.* | $ | 212,808 | ||||||||
1,236 | Black Box Corp. | 38,551 | |||||||||
1,537 | Blackbaud, Inc. | 35,428 | |||||||||
2,251 | Bottomline Technologies, Inc.* | 39,167 | |||||||||
5,016 | Brightpoint, Inc.* | 40,579 | |||||||||
1,011 | Cabot Microelectronics Corp.* | 38,782 | |||||||||
1,777 | CSG Systems International, Inc.* | 40,373 | |||||||||
1,143 | Cymer, Inc.* | 39,033 | |||||||||
4,289 | EarthLink, Inc. | 38,687 | |||||||||
4,173 | Epicor Software Corp.* | 38,308 | |||||||||
1,973 | Euronet Worldwide, Inc.* | 31,430 | |||||||||
18,869 | Fairchild Semiconductor International, Inc.* | 211,710 | |||||||||
4,774 | Global Cash Access Holdings, Inc.* | 41,438 | |||||||||
4,666 | Hittite Microwave Corp.* | 239,272 | |||||||||
3,888 | Imation Corp.* | 42,146 | |||||||||
2,797 | Insight Enterprises, Inc.* | 42,039 | |||||||||
7,592 | InterDigital, Inc.* | 210,071 | |||||||||
4,840 | Isilon Systems, Inc.* | 62,823 | |||||||||
5,436 | Kulicke & Soffa Industries, Inc.* | 44,575 | |||||||||
1,005 | Littelfuse, Inc.* | 42,441 | |||||||||
620 | MAXIMUS, Inc. | 38,384 | |||||||||
3,631 | Micrel, Inc. | 42,374 | |||||||||
2,196 | MicroStrategy, Inc., Class A* | 168,214 | |||||||||
3,612 | ModusLink Global Solutions, Inc.* | 32,255 | |||||||||
1,641 | Multi-Fineline Electronix, Inc.* | 42,535 | |||||||||
2,316 | Oplink Communications, Inc.* | 34,995 | |||||||||
1,316 | Park Electrochemical Corp. | 39,756 | |||||||||
6,849 | Plantronics, Inc. | 227,387 | |||||||||
995 | Power Integrations, Inc. | 38,288 | |||||||||
6,950 | Progress Software Corp.* | 224,138 | |||||||||
3,202 | Radiant Systems, Inc.* | 45,052 | |||||||||
8,496 | RF Micro Devices, Inc.* | 47,748 | |||||||||
11,772 | Sanmina-SCI Corp.* | 209,895 | |||||||||
5,588 | SMART Modular Technologies (WWH), Inc.* | 39,228 | |||||||||
16,791 | Sonus Networks, Inc.* | 43,489 | |||||||||
2,384 | Super Micro Computer, Inc.* | 33,805 | |||||||||
1,250 | SYNNEX Corp.* | 34,275 | |||||||||
5,745 | Syntel, Inc. | 207,509 | |||||||||
11,134 | TeleTech Holdings, Inc.* | 184,268 | |||||||||
5,578 | Unisys Corp.* | 156,296 | |||||||||
18,998 | Vishay Intertechnology, Inc.* | 197,769 | |||||||||
4,081,576 | |||||||||||
Materials—5.1% | |||||||||||
1,406 | AMCOL International Corp. | 40,408 | |||||||||
1,632 | Balchem Corp. | 42,334 | |||||||||
7,529 | Boise, Inc.* | 51,875 | |||||||||
3,237 | Buckeye Technologies, Inc.* | 45,706 | |||||||||
742 | Clearwater Paper Corp.* | 47,251 | |||||||||
55,955 | Graphic Packaging Holding Co.* | 206,474 | |||||||||
1,703 | H.B. Fuller Co. | 39,935 | |||||||||
1,540 | Innophos Holdings, Inc. | 43,875 |
See Notes to Financial Statements.
45
Schedule of Investments (Continued)
PowerShares Dynamic Small Cap Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks (Continued) | |||||||||||
3,905 | KapStone Paper and Packaging Corp.* | $ | 50,374 | ||||||||
1,286 | Koppers Holdings, Inc. | 36,227 | |||||||||
2,186 | NewMarket Corp. | 240,460 | |||||||||
4,499 | PolyOne Corp.* | 50,884 | |||||||||
4,228 | Wausau Paper Corp.* | 37,418 | |||||||||
1,619 | Zep, Inc. | 29,854 | |||||||||
963,075 | |||||||||||
Telecommunication Services—1.1% | |||||||||||
3,186 | AboveNet, Inc.* | 161,020 | |||||||||
816 | Atlantic Tele-Network, Inc. | 45,027 | |||||||||
206,047 | |||||||||||
Utilities—2.5% | |||||||||||
1,090 | Laclede Group, Inc. (The) | 37,147 | |||||||||
6,813 | Southwest Gas Corp. | 211,884 | |||||||||
6,681 | Unisource Energy Corp. | 222,611 | |||||||||
471,642 | |||||||||||
Total Common Stocks (Cost $16,183,409) | 18,954,838 | ||||||||||
Money Market Fund—0.2% | |||||||||||
44,172 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $44,172) | 44,172 | |||||||||
Total Investments (Cost $16,227,581)—100.2% | 18,999,010 | ||||||||||
Liabilities in excess of other assets—(0.2%) | (38,935 | ) | |||||||||
Net Assets—100.0% | $ | 18,960,075 |
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
46
Schedule of Investments
PowerShares Dynamic Small Cap Value Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks—100.0% | |||||||||||
Consumer Discretionary—34.3% | |||||||||||
14,337 | American Greetings Corp., Class A | $ | 352,117 | ||||||||
23,512 | Asbury Automotive Group, Inc.* | 365,612 | |||||||||
9,589 | Bob Evans Farms, Inc. | 296,588 | |||||||||
7,800 | CEC Entertainment, Inc.* | 304,590 | |||||||||
7,157 | Children's Place Retail Stores, Inc. (The)* | 327,934 | |||||||||
65,868 | Collective Brands, Inc.* | 1,544,605 | |||||||||
32,474 | Columbia Sportswear Co. | 1,803,606 | |||||||||
15,590 | Cooper Tire & Rubber Co. | 330,820 | |||||||||
6,261 | Cracker Barrel Old Country Store, Inc. | 309,105 | |||||||||
88,244 | Dillard's, Inc., Class A | 2,477,891 | |||||||||
35,883 | E.W. Scripps Co., Class A* | 392,560 | |||||||||
26,887 | Entercom Communications Corp., Class A* | 391,475 | |||||||||
11,428 | Genesco, Inc.* | 380,438 | |||||||||
34,224 | Gymboree Corp.* | 1,681,425 | |||||||||
11,313 | Helen of Troy Ltd.* | 305,564 | |||||||||
74,248 | Hillenbrand, Inc. | 1,825,016 | |||||||||
55,735 | International Speedway Corp., Class A | 1,703,261 | |||||||||
88,295 | Jones Apparel Group, Inc. | 1,921,299 | |||||||||
16,509 | Kirkland's, Inc.* | 367,655 | |||||||||
56,729 | McClatchy Co. (The), Class A* | 309,173 | |||||||||
12,802 | Men's Wearhouse, Inc. (The) | 302,511 | |||||||||
19,376 | RC2 Corp.* | 355,937 | |||||||||
66,937 | Rent-A-Center, Inc.* | 1,728,313 | |||||||||
30,583 | Retail Ventures, Inc.* | 330,908 | |||||||||
48,442 | Skechers U.S.A., Inc., Class A* | 1,857,751 | |||||||||
26,545 | Sonic Automotive, Inc., Class A* | 283,501 | |||||||||
33,466 | Stein Mart, Inc.* | 317,258 | |||||||||
5,203 | UniFirst Corp. | 254,271 | |||||||||
10,671 | Valassis Communications, Inc.* | 348,835 | |||||||||
53,995 | Wolverine World Wide, Inc. | 1,652,787 | |||||||||
24,822,806 | |||||||||||
Consumer Staples—4.2% | |||||||||||
18,781 | Chiquita Brands International, Inc.* | 282,466 | |||||||||
33,926 | Darling International, Inc.* | 321,958 | |||||||||
34,049 | Prestige Brands Holdings, Inc.* | 331,638 | |||||||||
50,806 | Ruddick Corp. | 1,795,484 | |||||||||
8,731 | WD-40 Co. | 307,593 | |||||||||
3,039,139 | |||||||||||
Energy—8.2% | |||||||||||
55,548 | Berry Petroleum Co., Class A | 1,798,089 | |||||||||
41,111 | Bristow Group, Inc.* | 1,591,407 | |||||||||
27,153 | Energy Partners Ltd.* | 371,181 | |||||||||
16,036 | Stone Energy Corp.* | 261,387 | |||||||||
27,124 | TETRA Technologies, Inc.* | 333,354 | |||||||||
56,347 | World Fuel Services Corp. | 1,601,945 | |||||||||
5,957,363 | |||||||||||
Financials—12.4% | |||||||||||
38,837 | Cash America International, Inc. | 1,439,299 | |||||||||
54,905 | Conseco, Inc.* | 323,939 | |||||||||
22,524 | Dime Community Bancshares | 287,181 |
Number of Shares | Value | ||||||||||
Common Stocks (Continued) | |||||||||||
28,436 | First Financial Bankshares, Inc. | $ | 1,520,757 | ||||||||
70,221 | International Bancshares Corp. | 1,697,242 | |||||||||
38,618 | Meadowbrook Insurance Group, Inc. | 305,082 | |||||||||
23,797 | National Financial Partners Corp.* | 366,236 | |||||||||
17,395 | Nelnet, Inc., Class A | 347,204 | |||||||||
98,132 | OneBeacon Insurance Group Ltd., Class A | 1,591,701 | |||||||||
7,364 | Safety Insurance Group, Inc. | 274,604 | |||||||||
16,869 | Selective Insurance Group, Inc. | 281,881 | |||||||||
45,195 | TrustCo Bank Corp. NY | 300,547 | |||||||||
6,543 | World Acceptance Corp.* | 230,837 | |||||||||
8,966,510 | |||||||||||
Health Care—3.2% | |||||||||||
13,232 | AmSurg Corp., Class A* | 274,167 | |||||||||
5,103 | Chemed Corp. | 280,716 | |||||||||
14,851 | Healthspring, Inc.* | 261,377 | |||||||||
35,513 | Magellan Health Services, Inc.* | 1,499,004 | |||||||||
2,315,264 | |||||||||||
Industrials—12.1% | |||||||||||
32,860 | A.O. Smith Corp. | 1,696,562 | |||||||||
19,135 | Apogee Enterprises, Inc. | 262,915 | |||||||||
12,202 | ATC Technology Corp.* | 249,409 | |||||||||
23,332 | Comfort Systems USA, Inc. | 328,515 | |||||||||
14,669 | Cornell Cos., Inc.* | 403,397 | |||||||||
15,231 | Deluxe Corp. | 319,394 | |||||||||
11,998 | EnerSys* | 310,508 | |||||||||
17,791 | Ennis, Inc. | 328,956 | |||||||||
35,143 | Hawaiian Holdings, Inc.* | 249,515 | |||||||||
11,418 | Kaman Corp. | 312,967 | |||||||||
8,442 | M&F Worldwide Corp.* | 258,832 | |||||||||
15,000 | TAL International Group, Inc. | 389,850 | |||||||||
39,517 | Teledyne Technologies, Inc.* | 1,722,941 | |||||||||
26,067 | United Stationers, Inc.* | 1,595,822 | |||||||||
9,375 | Watts Water Technologies, Inc., Class A | 332,625 | |||||||||
8,762,208 | |||||||||||
Information Technology—12.3% | |||||||||||
45,421 | Amkor Technology, Inc.* | 342,474 | |||||||||
38,349 | Brightpoint, Inc.* | 310,243 | |||||||||
13,591 | CSG Systems International, Inc.* | 308,787 | |||||||||
8,731 | Cymer, Inc.* | 298,164 | |||||||||
32,784 | EarthLink, Inc. | 295,712 | |||||||||
31,905 | Epicor Software Corp.* | 292,888 | |||||||||
144,251 | Fairchild Semiconductor International, Inc.* | 1,618,496 | |||||||||
36,507 | Global Cash Access Holdings, Inc.* | 316,881 | |||||||||
27,617 | ModusLink Global Solutions, Inc.* | 246,620 | |||||||||
43,164 | Plexus Corp.* | 1,599,226 | |||||||||
42,723 | SMART Modular Technologies (WWH), Inc.* | 299,915 | |||||||||
9,549 | SYNNEX Corp.* | 261,834 | |||||||||
42,644 | Unisys Corp.* | 1,194,885 | |||||||||
145,236 | Vishay Intertechnology, Inc.* | 1,511,907 | |||||||||
8,898,032 |
See Notes to Financial Statements.
47
Schedule of Investments (Continued)
PowerShares Dynamic Small Cap Value Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks (Continued) | |||||||||||
Materials—8.3% | |||||||||||
24,743 | Buckeye Technologies, Inc.* | $ | 349,371 | ||||||||
5,667 | Clearwater Paper Corp.* | 360,875 | |||||||||
427,776 | Graphic Packaging Holding Co.* | 1,578,493 | |||||||||
13,029 | H.B. Fuller Co. | 305,530 | |||||||||
11,774 | Innophos Holdings, Inc. | 335,441 | |||||||||
29,851 | KapStone Paper and Packaging Corp.* | 385,078 | |||||||||
9,837 | Koppers Holdings, Inc. | 277,108 | |||||||||
34,393 | PolyOne Corp.* | 388,985 | |||||||||
56,347 | Sensient Technologies Corp. | 1,776,621 | |||||||||
32,321 | Wausau Paper Corp.* | 286,041 | |||||||||
6,043,543 | |||||||||||
Utilities—5.0% | |||||||||||
8,339 | Laclede Group, Inc. (The) | 284,193 | |||||||||
52,087 | Southwest Gas Corp. | 1,619,906 | |||||||||
51,088 | Unisource Energy Corp. | 1,702,252 | |||||||||
3,606,351 | |||||||||||
Total Common Stocks (Cost $62,737,441) | 72,411,216 | ||||||||||
Money Market Fund—0.1% | |||||||||||
100,171 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $100,171) | 100,171 | |||||||||
Total Investments (Cost $62,837,612)—100.1% | 72,511,387 | ||||||||||
Liabilities in excess of other assets—(0.1%) | (58,283 | ) | |||||||||
Net Assets—100.0% | $ | 72,453,104 |
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
48
Schedule of Investments
PowerShares FTSE NASDAQ Small Cap Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—99.7% | |||||||||||
Consumer Discretionary—12.7% | |||||||||||
72 | AFC Enterprises, Inc.* | $ | 786 | ||||||||
65 | Airmedia Group, Inc. ADR (China)* | 417 | |||||||||
71 | Ambassadors Group, Inc. | 862 | |||||||||
68 | American Public Education, Inc.* | 2,880 | |||||||||
45 | America's Car-Mart, Inc.* | 1,140 | |||||||||
50 | Ascent Media Corp., Class A* | 1,476 | |||||||||
78 | Audiovox Corp., Class A* | 726 | |||||||||
320 | Ballard Power Systems, Inc. (Canada)* | 752 | |||||||||
132 | Bebe Stores, Inc. | 1,088 | |||||||||
82 | Big 5 Sporting Goods Corp. | 1,390 | |||||||||
100 | BJ's Restaurants, Inc.* | 2,413 | |||||||||
41 | Blue Nile, Inc.* | 2,214 | |||||||||
50 | Buffalo Wild Wings, Inc.* | 2,067 | |||||||||
92 | California Pizza Kitchen, Inc.* | 1,886 | |||||||||
25 | Cavco Industries, Inc.* | 979 | |||||||||
439 | Charming Shoppes, Inc.* | 2,480 | |||||||||
33 | Cherokee, Inc. | 675 | |||||||||
20 | China Auto Logistics, Inc.* | 81 | |||||||||
31 | China Automotive Systems, Inc.* | 689 | |||||||||
46 | China XD Plastics Co. Ltd.* | 314 | |||||||||
169 | ChinaCast Education Corp.* | 1,137 | |||||||||
15 | Churchill Downs, Inc. | 575 | |||||||||
42 | Citi Trends, Inc.* | 1,409 | |||||||||
266 | CKX, Inc.* | 1,564 | |||||||||
263 | Coldwater Creek, Inc.* | 1,862 | |||||||||
64 | Conn's, Inc.* | 610 | |||||||||
29 | Core-Mark Holding Co., Inc.* | 885 | |||||||||
327 | Crocs, Inc.* | 3,159 | |||||||||
56 | Crown Media Holdings, Inc., Class A* | 101 | |||||||||
47 | Deer Consumer Products, Inc.* | 485 | |||||||||
366 | Denny's Corp.* | 1,219 | |||||||||
51 | Dorman Products, Inc.* | 1,293 | |||||||||
302 | drugstore.com, Inc.* | 1,105 | |||||||||
70 | Exceed Co. Ltd. (British Virgin Islands)* | 622 | |||||||||
286 | Exide Technologies* | 1,699 | |||||||||
200 | Finish Line, Inc. (The), Class A | 3,222 | |||||||||
25 | Fisher Communications, Inc.* | 376 | |||||||||
151 | Fred's, Inc., Class A | 2,097 | |||||||||
50 | Fuel Systems Solutions, Inc.* | 1,574 | |||||||||
79 | Fuqi International, Inc.* | 830 | |||||||||
50 | Gaiam, Inc., Class A | 453 | |||||||||
71 | G-III Apparel Group Ltd.* | 2,031 | |||||||||
68 | Global Sources Ltd. (Bermuda)* | 498 | |||||||||
52 | Global Traffic Network, Inc.* | 316 | |||||||||
85 | Helen of Troy Ltd.* | 2,296 | |||||||||
108 | Hibbett Sports, Inc.* | 2,970 | |||||||||
91 | Home Inns & Hotels Management, Inc. ADR (China)* | 3,171 | |||||||||
168 | Hot Topic, Inc. | 1,284 | |||||||||
213 | HSN, Inc.* | 6,418 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
240 | Imax Corp. (Canada)* | $ | 4,536 | ||||||||
214 | Interval Leisure Group, Inc.* | 3,165 | |||||||||
19 | iRobot Corp.* | 383 | |||||||||
61 | Isle of Capri Casinos, Inc.* | 664 | |||||||||
106 | JAKKS Pacific, Inc.* | 1,621 | |||||||||
67 | Jos. A. Bank Clothiers, Inc.* | 4,078 | |||||||||
56 | Kirkland's, Inc.* | 1,247 | |||||||||
136 | Knology, Inc.* | 1,786 | |||||||||
103 | K-Swiss, Inc., Class A* | 1,281 | |||||||||
39 | Learning Tree International, Inc.* | 617 | |||||||||
77 | Lincoln Educational Services Corp.* | 1,922 | |||||||||
154 | Mediacom Communications Corp., Class A* | 1,019 | |||||||||
503 | Melco Crown Entertainment Ltd. ADR (Macau)* | 2,394 | |||||||||
46 | Monarch Casino & Resort, Inc.* | 535 | |||||||||
75 | Monro Muffler Brake, Inc. | 2,689 | |||||||||
112 | Morgans Hotel Group Co.* | 949 | |||||||||
160 | National CineMedia, Inc. | 3,046 | |||||||||
199 | NET Servicos de Comunicacao SA ADR (Brazil)* | 2,338 | |||||||||
49 | Outdoor Channel Holdings, Inc.* | 339 | |||||||||
65 | Overstock.com, Inc.* | 1,203 | |||||||||
250 | Pacific Sunwear of California, Inc.* | 1,265 | |||||||||
49 | Peet's Coffee & Tea, Inc.* | 1,941 | |||||||||
65 | PetMed Express, Inc. | 1,439 | |||||||||
96 | Princeton Review, Inc.* | 300 | |||||||||
81 | RC2 Corp.* | 1,488 | |||||||||
136 | RCN Corp.* | 1,996 | |||||||||
44 | Red Robin Gourmet Burgers, Inc.* | 1,074 | |||||||||
19 | RRsat Global Communications Network Ltd. (Israel) | 209 | |||||||||
69 | Rue21, Inc.* | 2,180 | |||||||||
205 | Select Comfort Corp.* | 2,321 | |||||||||
37 | Shoe Carnival, Inc.* | 1,023 | |||||||||
204 | Shuffle Master, Inc.* | 1,958 | |||||||||
49 | Shutterfly, Inc.* | 1,153 | |||||||||
226 | Smith & Wesson Holding Corp.* | 1,006 | |||||||||
248 | Sonic Corp.* | 2,904 | |||||||||
124 | Spartan Motors, Inc. | 765 | |||||||||
122 | Stein Mart, Inc.* | 1,157 | |||||||||
55 | Steiner Leisure Ltd.* | 2,578 | |||||||||
68 | Steven Madden Ltd.* | 3,941 | |||||||||
340 | Stewart Enterprises, Inc., Class A | 2,305 | |||||||||
57 | SuperMedia, Inc.* | 2,559 | |||||||||
28 | Syms Corp.* | 255 | |||||||||
201 | Texas Roadhouse, Inc.* | 2,971 | |||||||||
72 | True Religion Apparel, Inc.* | 2,250 | |||||||||
52 | Universal Electronics, Inc.* | 1,103 | |||||||||
97 | VisionChina Media, Inc. ADR (China)* | 416 | |||||||||
69 | Volcom, Inc.* | 1,645 | |||||||||
12 | Wacoal Holdings Corp. ADR (Japan)* | 753 |
See Notes to Financial Statements.
49
Schedule of Investments (Continued)
PowerShares FTSE NASDAQ Small Cap Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
63 | West Marine, Inc.* | $ | 754 | ||||||||
146 | Westport Innovations, Inc. (Canada)* | 2,774 | |||||||||
369 | Wet Seal, Inc. (The), Class A* | 1,745 | |||||||||
43 | Weyco Group, Inc. | 1,051 | |||||||||
94 | Wonder Auto Technology, Inc.* | 1,088 | |||||||||
85 | Zumiez, Inc.* | 1,578 | |||||||||
160,333 | |||||||||||
Consumer Staples—3.5% | |||||||||||
20 | Alico, Inc. | 534 | |||||||||
69 | Andersons, Inc. (The) | 2,494 | |||||||||
9 | Arden Group, Inc., Class A | 913 | |||||||||
55 | Calavo Growers, Inc. | 954 | |||||||||
60 | Cal-Maine Foods, Inc. | 2,003 | |||||||||
65 | Central Garden & Pet Co.* | 730 | |||||||||
174 | Central Garden & Pet Co., Class A* | 1,797 | |||||||||
47 | China Sky One Medical, Inc.* | 666 | |||||||||
42 | China-Biotics, Inc.* | 748 | |||||||||
20 | Coca-Cola Bottling Co. Consolidated | 1,102 | |||||||||
187 | Cresud S.A.C.I.F.y A. ADR (Argentina) | 2,624 | |||||||||
83 | Diamond Foods, Inc. | 3,545 | |||||||||
110 | Elizabeth Arden, Inc.* | 2,003 | |||||||||
30 | Farmer Bros. Co. | 561 | |||||||||
78 | Female Health Co. (The) | 498 | |||||||||
7 | Griffin Land & Nurseries, Inc. | 205 | |||||||||
46 | Imperial Sugar Co. | 737 | |||||||||
46 | Inter Parfums, Inc. | 795 | |||||||||
52 | J & J Snack Foods Corp. | 2,423 | |||||||||
19 | Lifeway Foods, Inc.* | 209 | |||||||||
48 | Nash Finch Co. | 1,681 | |||||||||
52 | National Beverage Corp. | 603 | |||||||||
35 | Origin Agritech Ltd. (British Virgin Islands)* | 307 | |||||||||
65 | Pantry, Inc. (The)* | 1,028 | |||||||||
112 | PriceSmart, Inc. | 2,786 | |||||||||
238 | Smart Balance, Inc.* | 1,583 | |||||||||
85 | Spartan Stores, Inc. | 1,283 | |||||||||
246 | SunOpta, Inc. (Canada)* | 1,114 | |||||||||
32 | Susser Holdings Corp.* | 345 | |||||||||
44 | USANA Health Sciences, Inc.* | 1,595 | |||||||||
20 | Village Super Market, Inc., Class A | 538 | |||||||||
62 | WD-40 Co. | 2,184 | |||||||||
207 | Winn-Dixie Stores, Inc.* | 2,610 | |||||||||
98 | Zhongpin, Inc.* | 1,243 | |||||||||
44,441 | |||||||||||
Energy—4.8% | |||||||||||
128 | Acergy SA ADR (Luxembourg) | 2,446 | |||||||||
59 | Approach Resources, Inc.* | 528 | |||||||||
144 | ATP Oil & Gas Corp.* | 2,629 | |||||||||
441 | Brigham Exploration Co.* | 8,604 | |||||||||
52 | Bronco Drilling Co., Inc.* | 249 | |||||||||
49 | China Integrated Energy, Inc.* | 577 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
23 | Clayton Williams Energy, Inc.* | $ | 1,069 | ||||||||
113 | Clean Energy Fuels Corp.* | 1,991 | |||||||||
132 | Crosstex Energy, Inc.* | 1,192 | |||||||||
29 | Dawson Geophysical Co.* | 849 | |||||||||
791 | Delta Petroleum Corp.* | 1,218 | |||||||||
193 | Energy XXI Bermuda Ltd. (Bermuda)* | 3,379 | |||||||||
162 | Fx Energy, Inc.* | 698 | |||||||||
55 | Georesources, Inc.* | 944 | |||||||||
325 | Global Industries Ltd.* | 2,177 | |||||||||
38 | Green Plains Renewable Energy, Inc.* | 522 | |||||||||
54 | Gulf Island Fabrication, Inc. | 1,294 | |||||||||
121 | Gulfport Energy Corp.* | 1,513 | |||||||||
437 | Hercules Offshore, Inc.* | 1,731 | |||||||||
798 | Ivanhoe Energy, Inc. (Canada)* | 2,522 | |||||||||
104 | James River Coal Co.* | 1,957 | |||||||||
65 | Knightsbridge Tankers Ltd. (Bermuda) | 1,231 | |||||||||
99 | Matrix Service Co.* | 1,052 | |||||||||
17 | OYO Geospace Corp.* | 845 | |||||||||
73 | Petroleum Development Corp.* | 1,709 | |||||||||
47 | PHI, Inc.* | 977 | |||||||||
146 | Ram Energy Resources, Inc.* | 273 | |||||||||
121 | Rex Energy Corp.* | 1,609 | |||||||||
199 | Rosetta Resources, Inc.* | 4,955 | |||||||||
45 | Seahawk Drilling, Inc.* | 750 | |||||||||
63 | StealthGas, Inc. (Greece)* | 341 | |||||||||
88 | Superior Well Services, Inc.* | 1,276 | |||||||||
49 | T-3 Energy Services, Inc.* | 1,458 | |||||||||
142 | Tesco Corp. (Canada)* | 1,776 | |||||||||
70 | Toreador Resources Corp.* | 635 | |||||||||
249 | Transglobe Energy Corp. (Canada)* | 1,863 | |||||||||
44 | Union Drilling, Inc.* | 292 | |||||||||
269 | Warren Resources, Inc.* | 963 | |||||||||
60,094 | |||||||||||
Financials—15.6% | |||||||||||
69 | 1st Source Corp. | 1,320 | |||||||||
83 | Abington Bancorp, Inc. | 789 | |||||||||
90 | Altisource Portfolio Solutions SA (Luxembourg)* | 2,174 | |||||||||
92 | American Capital Agency Corp. REIT | 2,531 | |||||||||
39 | American Physicians Capital, Inc. | 1,304 | |||||||||
26 | American Physicians Service Group, Inc. | 608 | |||||||||
52 | Ameris Bancorp | 579 | |||||||||
71 | AMERISAFE, Inc.* | 1,214 | |||||||||
42 | Arrow Financial Corp. | 1,168 | |||||||||
59 | Asset Acceptance Capital Corp.* | 434 | |||||||||
32 | Avatar Holdings, Inc.* | 763 | |||||||||
34 | Baldwin & Lyons, Inc., Class B | 853 | |||||||||
23 | BancFirst Corp. | 1,015 | |||||||||
17 | Bancorp Rhode Island, Inc. | 487 | |||||||||
89 | Bank Mutual Corp. | 634 |
See Notes to Financial Statements.
50
Schedule of Investments (Continued)
PowerShares FTSE NASDAQ Small Cap Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
48 | Bank of The Ozarks, Inc. | $ | 1,847 | ||||||||
82 | BankFinancial Corp. | 792 | |||||||||
53 | Berkshire Hills Bancorp, Inc. | 1,113 | |||||||||
146 | BGC Partners, Inc., Class A | 952 | |||||||||
261 | Boston Private Financial Holdings, Inc. | 2,070 | |||||||||
225 | Brookline Bancorp, Inc. | 2,473 | |||||||||
29 | Camden National Corp. | 1,036 | |||||||||
48 | Capital City Bank Group, Inc. | 844 | |||||||||
109 | Cardinal Financial Corp. | 1,194 | |||||||||
114 | Cardtronics, Inc.* | 1,589 | |||||||||
299 | Cathay General Bancorp | 3,699 | |||||||||
91 | Chemical Financial Corp. | 2,157 | |||||||||
1,502 | Citizens Republic Bancorp, Inc.* | 1,877 | |||||||||
60 | City Holding Co. | 2,102 | |||||||||
51 | Clifton Savings Bancorp, Inc. | 501 | |||||||||
51 | CNinsure, Inc. ADR (Cayman Islands) | 1,415 | |||||||||
140 | CoBiz Financial, Inc. | 1,000 | |||||||||
107 | Columbia Banking System, Inc. | 2,405 | |||||||||
57 | Community Trust Bancorp, Inc. | 1,711 | |||||||||
91 | CompuCredit Holdings Corp. | 545 | |||||||||
34 | Credit Acceptance Corp.* | 1,533 | |||||||||
83 | Danvers Bancorp, Inc. | 1,357 | |||||||||
10 | Diamond Hill Investment Group, Inc. | 780 | |||||||||
131 | Dime Community Bancshares | 1,670 | |||||||||
92 | Dollar Financial Corp.* | 2,154 | |||||||||
57 | Donegal Group, Inc., Class A | 822 | |||||||||
89 | eHealth, Inc.* | 1,220 | |||||||||
10 | EMC Insurance Group, Inc. | 243 | |||||||||
89 | Encore Capital Group, Inc.* | 2,048 | |||||||||
55 | Enterprise Financial Services Corp. | 578 | |||||||||
42 | Epoch Holding Corp. | 543 | |||||||||
170 | EZCORP, Inc., Class A* | 3,521 | |||||||||
122 | FBR Capital Markets Corp.* | 577 | |||||||||
63 | First Bancorp | 1,028 | |||||||||
253 | First Busey Corp. | 1,278 | |||||||||
113 | First Cash Financial Services, Inc.* | 2,493 | |||||||||
67 | First Community Bancshares, Inc. | 1,116 | |||||||||
215 | First Financial Bancorp | 4,109 | |||||||||
38 | First Financial Corp. | 1,108 | |||||||||
63 | First Financial Holdings, Inc. | 890 | |||||||||
74 | First Financial Northwest, Inc. | 477 | |||||||||
81 | First Merchants Corp. | 708 | |||||||||
275 | First Midwest Bancorp, Inc. | 4,180 | |||||||||
37 | First South Bancorp, Inc. | 516 | |||||||||
108 | FirstService Corp. (Canada)* | 2,578 | |||||||||
118 | Flushing Financial Corp. | 1,606 | |||||||||
26 | Fox Chase Bancorp, Inc.* | 292 | |||||||||
39 | FPIC Insurance Group, Inc.* | 1,062 | |||||||||
225 | GFI Group, Inc. | 1,552 | |||||||||
38 | Great Southern Bancorp, Inc. | 927 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
111 | Greenlight Capital Re Ltd., Class A (Cayman Islands)* | $ | 2,844 | ||||||||
76 | Hallmark Financial Services, Inc.* | 890 | |||||||||
62 | Heartland Financial USA, Inc. | 1,185 | |||||||||
33 | Home Bancorp, Inc.* | 458 | |||||||||
73 | Home BancShares, Inc. | 2,053 | |||||||||
32 | Home Federal Bancorp, Inc. | 510 | |||||||||
61 | Hudson Valley Holding Corp. | 1,531 | |||||||||
79 | Independent Bank Corp. | 2,049 | |||||||||
51 | Infinity Property & Casualty Corp. | 2,353 | |||||||||
67 | International Assets Holding Corp.* | 1,083 | |||||||||
13 | Kansas City Life Insurance Co. | 442 | |||||||||
20 | K-Fed Bancorp | 200 | |||||||||
90 | Lakeland Bancorp, Inc. | 945 | |||||||||
60 | Lakeland Financial Corp. | 1,252 | |||||||||
33 | Legacy Bancorp, Inc. | 309 | |||||||||
28 | Life Partners Holdings, Inc. | 647 | |||||||||
268 | Maiden Holdings Ltd. (Bermuda) | 2,007 | |||||||||
77 | MainSource Financial Group, Inc. | 623 | |||||||||
121 | MarketAxess Holdings, Inc. | 1,902 | |||||||||
67 | Medallion Financial Corp. | 536 | |||||||||
42 | Meridian Interstate Bancorp, Inc.* | 484 | |||||||||
83 | Mission West Properties, Inc. REIT | 601 | |||||||||
144 | Nara Bancorp, Inc.* | 1,296 | |||||||||
12 | NASB Financial, Inc. | 297 | |||||||||
22 | National Interstate Corp. | 460 | |||||||||
13 | National Western Life Insurance Co., Class A | 2,485 | |||||||||
187 | NewStar Financial, Inc.* | 1,432 | |||||||||
168 | Northfield Bancorp, Inc. | 2,480 | |||||||||
51 | OceanFirst Financial Corp. | 656 | |||||||||
52 | Old Second Bancorp, Inc. | 297 | |||||||||
62 | Oritani Financial Corp. | 1,029 | |||||||||
70 | Pacific Continental Corp. | 811 | |||||||||
72 | Penson Worldwide, Inc.* | 677 | |||||||||
40 | Peoples Bancorp, Inc. | 694 | |||||||||
64 | Pico Holdings, Inc.* | 2,275 | |||||||||
127 | Pinnacle Financial Partners, Inc.* | 1,941 | |||||||||
92 | PMA Capital Corp., Class A* | 632 | |||||||||
84 | Presidential Life Corp. | 990 | |||||||||
149 | Provident New York Bancorp | 1,530 | |||||||||
80 | Renasant Corp. | 1,322 | |||||||||
70 | Republic Bancorp, Inc., Class A | 1,690 | |||||||||
37 | Rockville Financial, Inc. | 446 | |||||||||
118 | Roma Financial Corp. | 1,381 | |||||||||
105 | S&T Bancorp, Inc. | 2,525 | |||||||||
52 | S.Y. Bancorp, Inc. | 1,234 | |||||||||
57 | Safety Insurance Group, Inc. | 2,126 | |||||||||
81 | Sanders Morris Harris Group, Inc. | 484 | |||||||||
90 | Sandy Spring Bancorp, Inc. | 1,570 | |||||||||
48 | SCBT Financial Corp. | 1,910 | |||||||||
224 | Seacoast Banking Corp. of Florida* | 488 |
See Notes to Financial Statements.
51
Schedule of Investments (Continued)
PowerShares FTSE NASDAQ Small Cap Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
32 | Shore Bancshares, Inc. | $ | 451 | ||||||||
33 | Sierra Bancorp | 412 | |||||||||
63 | Simmons First National Corp., Class A | 1,769 | |||||||||
821 | South Financial Group, Inc. (The)* | 632 | |||||||||
59 | Southside Bancshares, Inc. | 1,273 | |||||||||
55 | Southwest Bancorp, Inc. | 806 | |||||||||
86 | StellarOne Corp. | 1,282 | |||||||||
388 | Sterling Bancshares, Inc. | 2,281 | |||||||||
36 | Suffolk Bancorp | 1,118 | |||||||||
66 | Sun Bancorp, Inc.* | 356 | |||||||||
490 | Susquehanna Bancshares, Inc. | 5,341 | |||||||||
46 | Territorial Bancorp, Inc. | 873 | |||||||||
135 | Texas Capital Bancshares, Inc.* | 2,686 | |||||||||
96 | Thomas Weisel Partners Group, Inc.* | 754 | |||||||||
169 | Tower Group, Inc. | 3,897 | |||||||||
95 | Townebank | 1,523 | |||||||||
79 | TradeStation Group, Inc.* | 660 | |||||||||
60 | TriCo Bancshares | 1,142 | |||||||||
290 | TrustCo Bank Corp. NY | 1,928 | |||||||||
95 | Union First Market Bankshares Corp. | 1,594 | |||||||||
138 | United America Indemnity Ltd., Class A* | 1,311 | |||||||||
358 | United Community Banks, Inc.* | 2,091 | |||||||||
68 | United Financial Bancorp, Inc. | 951 | |||||||||
76 | United Fire & Casualty Co. | 1,738 | |||||||||
62 | Univest Corp. of Pennsylvania | 1,213 | |||||||||
47 | ViewPoint Financial Group | 800 | |||||||||
101 | Virginia Commerce Bancorp* | 720 | |||||||||
60 | Washington Trust Bancorp, Inc. | 1,087 | |||||||||
101 | WesBanco, Inc. | 1,947 | |||||||||
116 | Westfield Financial, Inc. | 1,056 | |||||||||
83 | Wilshire Bancorp, Inc. | 901 | |||||||||
62 | World Acceptance Corp.* | 2,187 | |||||||||
27 | WSFS Financial Corp. | 1,137 | |||||||||
198,140 | |||||||||||
Health Care—19.3% | |||||||||||
62 | 3SBio, Inc. ADR (Cayman Islands)* | 739 | |||||||||
82 | Abaxis, Inc.* | 2,125 | |||||||||
142 | Abiomed, Inc.* | 1,369 | |||||||||
104 | Accelrys, Inc.* | 727 | |||||||||
219 | Accuray, Inc.* | 1,410 | |||||||||
145 | Acorda Therapeutics, Inc.* | 5,619 | |||||||||
90 | Affymax, Inc.* | 2,146 | |||||||||
270 | Affymetrix, Inc.* | 1,874 | |||||||||
46 | Air Methods Corp.* | 1,522 | |||||||||
250 | Akorn, Inc.* | 525 | |||||||||
91 | Albany Molecular Research, Inc.* | 728 | |||||||||
300 | Allos Therapeutics, Inc.* | 2,370 | |||||||||
35 | Almost Family, Inc.* | 1,483 | |||||||||
149 | Alphatec Holdings, Inc.* | 995 | |||||||||
80 | AMAG Pharmaceuticals, Inc.* | 2,732 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
60 | American Dental Partners, Inc.* | $ | 773 | ||||||||
34 | Analogic Corp. | 1,626 | |||||||||
92 | Angiodynamics, Inc.* | 1,472 | |||||||||
86 | Ardea Biosciences, Inc.* | 2,184 | |||||||||
353 | Arena Pharmaceuticals, Inc.* | 1,147 | |||||||||
414 | Ariad Pharmaceuticals, Inc.* | 1,457 | |||||||||
170 | ArQule, Inc.* | 1,083 | |||||||||
192 | Array Biopharma, Inc.* | 710 | |||||||||
7 | Atrion Corp. | 992 | |||||||||
205 | ATS Medical, Inc.* | 818 | |||||||||
167 | BioCryst Pharmaceuticals, Inc.* | 1,269 | |||||||||
62 | BioMimetic Therapeutics, Inc.* | 826 | |||||||||
105 | Bio-Reference Labs, Inc.* | 2,457 | |||||||||
150 | BioScrip, Inc.* | 1,341 | |||||||||
18 | Biospecifics Technologies Corp.* | 569 | |||||||||
119 | BMP Sunstone Corp. (China)* | 639 | |||||||||
144 | Cadence Pharmaceuticals, Inc.* | 1,411 | |||||||||
230 | Cardiome Pharma Corp. (Canada)* | 1,923 | |||||||||
90 | CardioNet, Inc.* | 866 | |||||||||
312 | Celera Corp.* | 2,331 | |||||||||
2,150 | Cell Therapeutics, Inc.* | 1,328 | |||||||||
120 | Celldex Therapeutics, Inc.* | 980 | |||||||||
95 | China Medical Technologies, Inc. ADR (Cayman Islands) | 1,319 | |||||||||
75 | Clinical Data, Inc.* | 1,401 | |||||||||
20 | Computer Programs & Systems, Inc. | 901 | |||||||||
116 | Conceptus, Inc.* | 2,197 | |||||||||
34 | CorVel Corp.* | 1,132 | |||||||||
117 | Cross Country Healthcare, Inc.* | 1,172 | |||||||||
60 | Crucell NV ADR (Netherlands)* | 1,261 | |||||||||
57 | Cumberland Pharmaceuticals, Inc.* | 607 | |||||||||
25 | Cutera, Inc.* | 289 | |||||||||
79 | Cyberonics, Inc.* | 1,543 | |||||||||
37 | Cynosure, Inc., Class A* | 466 | |||||||||
146 | Cypress Bioscience, Inc.* | 736 | |||||||||
231 | Cytokinetics, Inc.* | 744 | |||||||||
188 | Dexcom, Inc.* | 2,059 | |||||||||
568 | Discovery Laboratories, Inc.* | 285 | |||||||||
330 | Durect Corp.* | 940 | |||||||||
365 | Dyax Corp.* | 1,277 | |||||||||
31 | Ensign Group, Inc. (The) | 538 | |||||||||
225 | Enzon Pharmaceuticals, Inc.* | 2,380 | |||||||||
185 | eResearchTechnology, Inc.* | 1,363 | |||||||||
73 | Eurand NV (Netherlands)* | 752 | |||||||||
36 | Exactech, Inc.* | 737 | |||||||||
409 | Exelixis, Inc.* | 2,364 | |||||||||
91 | Flamel Technologies SA ADR (France)* | 784 | |||||||||
81 | Genomic Health, Inc.* | 1,298 | |||||||||
66 | Genoptix, Inc.* | 2,554 | |||||||||
111 | Gentiva Health Services, Inc.* | 3,183 | |||||||||
371 | Geron Corp.* | 2,163 |
See Notes to Financial Statements.
52
Schedule of Investments (Continued)
PowerShares FTSE NASDAQ Small Cap Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
56 | Given Imaging Ltd. (Israel)* | $ | 1,175 | ||||||||
55 | Gtx, Inc.* | 180 | |||||||||
349 | Halozyme Therapeutics, Inc.* | 2,973 | |||||||||
142 | Hansen Medical, Inc.* | 361 | |||||||||
128 | Healthways, Inc.* | 2,085 | |||||||||
38 | HeartWare International, Inc.* | 2,137 | |||||||||
40 | ICU Medical, Inc.* | 1,424 | |||||||||
101 | Idenix Pharmaceuticals, Inc.* | 467 | |||||||||
89 | Idera Pharmaceuticals, Inc.* | 557 | |||||||||
217 | Immunogen, Inc.* | 2,150 | |||||||||
286 | Immunomedics, Inc.* | 1,001 | |||||||||
450 | Incyte Corp.* | 6,039 | |||||||||
313 | Inspire Pharmaceuticals, Inc.* | 2,144 | |||||||||
140 | Insulet Corp.* | 1,932 | |||||||||
207 | InterMune, Inc.* | 8,810 | |||||||||
127 | inVentiv Health, Inc.* | 2,925 | |||||||||
60 | IPC The Hospitalist Co., Inc.* | 1,862 | |||||||||
68 | IRIS International, Inc.* | 777 | |||||||||
47 | Jazz Pharmaceuticals, Inc.* | 477 | |||||||||
56 | Kendle International, Inc.* | 927 | |||||||||
41 | Kensey Nash Corp.* | 929 | |||||||||
940 | Lexicon Pharmaceuticals, Inc.* | 1,513 | |||||||||
51 | LHC Group, Inc.* | 1,739 | |||||||||
446 | Ligand Pharmaceuticals, Inc., Class B* | 821 | |||||||||
158 | Luminex Corp.* | 2,569 | |||||||||
95 | MAKO Surgical Corp.* | 1,333 | |||||||||
215 | Mannkind Corp.* | 1,494 | |||||||||
37 | MAP Pharmaceuticals, Inc.* | 664 | |||||||||
126 | Martek Biosciences Corp.* | 2,776 | |||||||||
89 | Maxygen, Inc.* | 570 | |||||||||
58 | MedCath Corp.* | 576 | |||||||||
62 | Medical Action Industries, Inc.* | 736 | |||||||||
150 | Medicines Co. (The)* | 1,101 | |||||||||
65 | Medidata Solutions, Inc.* | 954 | |||||||||
95 | Medivation, Inc.* | 1,060 | |||||||||
57 | MedQuist, Inc. | 531 | |||||||||
106 | Merit Medical Systems, Inc.* | 1,714 | |||||||||
101 | Metabolix, Inc.* | 1,259 | |||||||||
227 | Micromet, Inc.* | 1,730 | |||||||||
61 | Micrus Endovascular Corp.* | 1,225 | |||||||||
127 | Momenta Pharmaceuticals, Inc.* | 1,763 | |||||||||
46 | MWI Veterinary Supply, Inc.* | 1,930 | |||||||||
93 | Myriad Pharmaceuticals, Inc.* | 457 | |||||||||
193 | Nabi Biopharmaceuticals* | 1,085 | |||||||||
79 | Nanosphere, Inc.* | 498 | |||||||||
108 | Natus Medical, Inc.* | 1,840 | |||||||||
84 | Neogen Corp.* | 2,208 | |||||||||
202 | Neurocrine Biosciences, Inc.* | 648 | |||||||||
66 | NovaMed, Inc.* | 216 | |||||||||
382 | Novavax, Inc.* | 1,081 | |||||||||
171 | NPS Pharmaceuticals, Inc.* | 1,192 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
132 | Nxstage Medical, Inc.* | $ | 1,679 | ||||||||
33 | Obagi Medical Products, Inc.* | 445 | |||||||||
94 | Odyssey HealthCare, Inc.* | 1,958 | |||||||||
123 | Omnicell, Inc.* | 1,642 | |||||||||
143 | Optimer Pharmaceuticals, Inc.* | 1,760 | |||||||||
175 | OraSure Technologies, Inc.* | 1,109 | |||||||||
134 | Orexigen Therapeutics, Inc.* | 908 | |||||||||
65 | Orthofix International NV (Netherlands)* | 2,222 | |||||||||
289 | Orthovita, Inc.* | 1,156 | |||||||||
25 | Osiris Therapeutics, Inc.* | 187 | |||||||||
160 | Pain Therapeutics, Inc.* | 960 | |||||||||
51 | Palomar Medical Technologies, Inc.* | 641 | |||||||||
110 | Pharmasset, Inc.* | 3,564 | |||||||||
113 | Pozen, Inc.* | 1,224 | |||||||||
119 | Progenics Pharmaceuticals, Inc.* | 766 | |||||||||
205 | QLT, Inc. (Canada)* | 1,296 | |||||||||
244 | Questcor Pharmaceuticals, Inc.* | 2,377 | |||||||||
110 | Quidel Corp.* | 1,621 | |||||||||
138 | Radnet, Inc.* | 508 | |||||||||
117 | Repligen Corp.* | 411 | |||||||||
84 | Res-Care, Inc.* | 978 | |||||||||
197 | Rigel Pharmaceuticals, Inc.* | 1,531 | |||||||||
46 | Rochester Medical Corp.* | 552 | |||||||||
206 | RTI Biologics, Inc.* | 789 | |||||||||
170 | Sangamo Biosciences, Inc.* | 1,047 | |||||||||
220 | Santarus, Inc.* | 722 | |||||||||
250 | Savient Pharmaceuticals, Inc.* | 3,625 | |||||||||
383 | Seattle Genetics, Inc.* | 4,826 | |||||||||
231 | Sequenom, Inc.* | 1,432 | |||||||||
162 | SIGA Technologies, Inc.* | 1,113 | |||||||||
200 | Sinovac Biotech Ltd. (China)* | 1,158 | |||||||||
45 | Somanetics Corp.* | 910 | |||||||||
55 | SonoSite, Inc.* | 1,844 | |||||||||
126 | Spectranetics Corp.* | 859 | |||||||||
143 | Stereotaxis, Inc.* | 679 | |||||||||
165 | Sun Healthcare Group, Inc.* | 1,475 | |||||||||
229 | SuperGen, Inc.* | 676 | |||||||||
66 | SurModics, Inc.* | 1,228 | |||||||||
130 | Syneron Medical Ltd. (Israel)* | 1,495 | |||||||||
42 | Synovis Life Technologies, Inc.* | 622 | |||||||||
108 | Synta Pharmaceuticals Corp.* | 438 | |||||||||
204 | Theravance, Inc.* | 3,421 | |||||||||
204 | TomoTherapy, Inc.* | 794 | |||||||||
44 | US Physical Therapy, Inc.* | 772 | |||||||||
103 | Vanda Pharmaceuticals, Inc.* | 862 | |||||||||
64 | Vascular Solutions, Inc.* | 634 | |||||||||
290 | ViroPharma, Inc.* | 3,689 | |||||||||
24 | Virtual Radiologic Corp.* | 300 | |||||||||
55 | Vital Images, Inc.* | 868 | |||||||||
306 | Vivus, Inc.* | 3,118 | |||||||||
115 | XenoPort, Inc.* | 1,196 |
See Notes to Financial Statements.
53
Schedule of Investments (Continued)
PowerShares FTSE NASDAQ Small Cap Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
968 | Xoma Ltd.* | $ | 640 | ||||||||
22 | Young Innovations, Inc. | 554 | |||||||||
81 | Zoll Medical Corp.* | 2,475 | |||||||||
243 | Zymogenetics, Inc.* | 1,443 | |||||||||
244,825 | |||||||||||
Industrials—13.2% | |||||||||||
87 | 3D Systems Corp.* | 1,354 | |||||||||
48 | AAON, Inc. | 1,159 | |||||||||
121 | Acacia Research - Acacia Technologies* | 1,800 | |||||||||
255 | Advanced Battery Technologies, Inc.* | 885 | |||||||||
57 | Advisory Board Co. (The)* | 1,877 | |||||||||
61 | Aerovironment, Inc.* | 1,597 | |||||||||
100 | Altra Holdings, Inc.* | 1,516 | |||||||||
12 | American Commercial Lines, Inc.* | 245 | |||||||||
40 | American Railcar Industries, Inc. | 654 | |||||||||
34 | American Science & Engineering, Inc. | 2,555 | |||||||||
40 | American Woodmark Corp. | 924 | |||||||||
149 | APAC Customer Services, Inc.* | 857 | |||||||||
106 | Apogee Enterprises, Inc. | 1,456 | |||||||||
99 | A-Power Energy Generation Systems Ltd.* | 1,039 | |||||||||
50 | Applied Signal Technology, Inc. | 934 | |||||||||
62 | Argon ST, Inc.* | 1,612 | |||||||||
85 | Astec Industries, Inc.* | 2,815 | |||||||||
75 | ATC Technology Corp.* | 1,533 | |||||||||
97 | Atlas Air Worldwide Holdings, Inc.* | 5,361 | |||||||||
29 | Barrett Business Services, Inc. | 447 | |||||||||
170 | Beacon Roofing Supply, Inc.* | 3,774 | |||||||||
122 | Canadian Solar, Inc. (China)* | 2,113 | |||||||||
916 | Capstone Turbine Corp.* | 1,118 | |||||||||
70 | Casella Waste Systems, Inc., Class A* | 361 | |||||||||
97 | Ceradyne, Inc.* | 2,153 | |||||||||
108 | Chart Industries, Inc.* | 2,483 | |||||||||
182 | China BAK Battery, Inc.* | 366 | |||||||||
31 | China Fire & Security Group, Inc.* | 424 | |||||||||
55 | China Ritar Power Corp.* | 237 | |||||||||
108 | China Sunergy Co. Ltd. ADR (China)* | 518 | |||||||||
65 | China Valves Technology, Inc.* | 712 | |||||||||
72 | Columbus McKinnon Corp.* | 1,298 | |||||||||
45 | Courier Corp. | 774 | |||||||||
41 | CRA International, Inc.* | 952 | |||||||||
103 | Diamond Management & Technology Consultants, Inc. | 836 | |||||||||
975 | DryShips, Inc. (Greece)* | 5,655 | |||||||||
37 | DXP Enterprises, Inc.* | 614 | |||||||||
37 | Dynamex, Inc.* | 655 | |||||||||
49 | Dynamic Materials Corp. | 880 | |||||||||
236 | Eagle Bulk Shipping, Inc.* | 1,366 | |||||||||
88 | Encore Wire Corp. | 1,954 | |||||||||
184 | Ener1, Inc.* | 765 | |||||||||
174 | Energy Conversion Devices, Inc.* | 1,239 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
195 | Energy Recovery, Inc.* | $ | 1,176 | ||||||||
68 | EnerNOC, Inc.* | 1,977 | |||||||||
88 | Euroseas Ltd. | 355 | |||||||||
790 | Evergreen Solar, Inc.* | 885 | |||||||||
52 | Exponent, Inc.* | 1,550 | |||||||||
266 | Force Protection, Inc.* | 1,423 | |||||||||
45 | FreightCar America, Inc. | 1,288 | |||||||||
69 | Fuel Tech, Inc.* | 518 | |||||||||
321 | FuelCell Energy, Inc.* | 883 | |||||||||
106 | Fushi Copperweld, Inc.* | 1,172 | |||||||||
70 | G&K Services, Inc., Class A | 1,924 | |||||||||
72 | GeoEye, Inc.* | 2,052 | |||||||||
86 | Gibraltar Industries, Inc.* | 1,292 | |||||||||
223 | Great Lakes Dredge & Dock Corp. | 1,209 | |||||||||
132 | H&E Equipment Services, Inc.* | 1,559 | |||||||||
47 | Harbin Electric, Inc.* | 1,030 | |||||||||
196 | Hawaiian Holdings, Inc.* | 1,392 | |||||||||
165 | Healthcare Services Group, Inc. | 3,546 | |||||||||
64 | Heidrick & Struggles International, Inc. | 1,690 | |||||||||
30 | Heritage-Crystal Clean, Inc.* | 308 | |||||||||
52 | Herley Industries, Inc.* | 762 | |||||||||
68 | Houston Wire & Cable Co. | 894 | |||||||||
24 | Hurco Cos., Inc.* | 467 | |||||||||
82 | Huron Consulting Group, Inc.* | 1,920 | |||||||||
55 | ICF International, Inc.* | 1,274 | |||||||||
129 | Innerworkings, Inc.* | 771 | |||||||||
145 | Insituform Technologies, Inc., Class A* | 3,476 | |||||||||
67 | Insteel Industries, Inc. | 821 | |||||||||
55 | Integrated Electrical Services, Inc.* | 343 | |||||||||
215 | Interface, Inc., Class A | 2,812 | |||||||||
475 | JA Solar Holdings Co. Ltd. ADR (China)* | 2,902 | |||||||||
47 | Jinpan International Ltd. (China) | 822 | |||||||||
97 | Kaman Corp. | 2,659 | |||||||||
119 | Kelly Services, Inc., Class A* | 1,914 | |||||||||
148 | Kforce, Inc.* | 2,056 | |||||||||
101 | Kimball International, Inc., Class B | 812 | |||||||||
60 | Ladish Co., Inc.* | 1,649 | |||||||||
24 | Lawson Products, Inc. | 390 | |||||||||
74 | Layne Christensen Co.* | 2,026 | |||||||||
38 | LB Foster Co., Class A* | 1,125 | |||||||||
98 | LECG Corp.* | 329 | |||||||||
33 | LMI Aerospace, Inc.* | 570 | |||||||||
91 | LSI Industries, Inc. | 640 | |||||||||
62 | Marten Transport Ltd.* | 1,355 | |||||||||
90 | McGrath Rentcorp | 2,339 | |||||||||
338 | Microvision, Inc.* | 1,058 | |||||||||
3 | Mitsui & Co. Ltd. ADR (Japan) | 985 | |||||||||
135 | Mobile Mini, Inc.* | 2,244 | |||||||||
46 | Multi-Color Corp. | 575 | |||||||||
75 | MYR Group, Inc.* | 1,345 | |||||||||
35 | Northwest Pipe Co.* | 844 |
See Notes to Financial Statements.
54
Schedule of Investments (Continued)
PowerShares FTSE NASDAQ Small Cap Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
226 | Odyssey Marine Exploration, Inc.* | $ | 303 | ||||||||
11 | Omega Flex, Inc. | 135 | |||||||||
137 | On Assignment, Inc.* | 963 | |||||||||
100 | Pacer International, Inc.* | 664 | |||||||||
5 | Patriot Transportation Holding, Inc.* | 420 | |||||||||
371 | Plug Power, Inc.* | 244 | |||||||||
56 | PMFG, Inc.* | 805 | |||||||||
33 | Powell Industries, Inc.* | 1,108 | |||||||||
10 | Preformed Line Products Co. | 300 | |||||||||
50 | Primoris Services Corp. | 395 | |||||||||
29 | Protection One, Inc.* | 449 | |||||||||
68 | Raven Industries, Inc. | 2,064 | |||||||||
83 | RBC Bearings, Inc.* | 2,619 | |||||||||
97 | Republic Airways Holdings, Inc.* | 607 | |||||||||
48 | RINO International Corp.* | 827 | |||||||||
75 | Rush Enterprises, Inc., Class A* | 1,216 | |||||||||
30 | Rush Enterprises, Inc., Class B* | 413 | |||||||||
51 | Saia, Inc.* | 845 | |||||||||
71 | School Specialty, Inc.* | 1,666 | |||||||||
93 | SmartHeat, Inc.* | 780 | |||||||||
141 | Solarfun Power Holdings Co. Ltd. ADR (China)* | 1,218 | |||||||||
58 | Standard Parking Corp.* | 980 | |||||||||
174 | Star Bulk Carriers Corp. | 496 | |||||||||
61 | Sterling Construction Co., Inc.* | 1,068 | |||||||||
48 | Sun Hydraulics Corp. | 1,344 | |||||||||
235 | Taser International, Inc.* | 1,112 | |||||||||
71 | Team, Inc.* | 1,235 | |||||||||
51 | Tecumseh Products Co., Class A* | 652 | |||||||||
14 | Tecumseh Products Co., Class B* | 184 | |||||||||
51 | Thermadyne Holdings Corp.* | 559 | |||||||||
50 | Titan Machinery, Inc.* | 719 | |||||||||
84 | Ultrapetrol Bahamas Ltd.* | 514 | |||||||||
55 | Universal Forest Products, Inc. | 2,313 | |||||||||
61 | Universal Truckload Services, Inc.* | 1,114 | |||||||||
52 | US Ecology, Inc. | 811 | |||||||||
30 | USA Truck, Inc.* | 553 | |||||||||
369 | Valence Technology, Inc.* | 387 | |||||||||
85 | Vicor Corp.* | 1,285 | |||||||||
62 | Vitran Corp., Inc. (Canada)* | 942 | |||||||||
14 | VSE Corp. | 563 | |||||||||
131 | Waste Services, Inc.* | 1,472 | |||||||||
167,619 | |||||||||||
Information Technology—26.2% | |||||||||||
129 | ACI Worldwide, Inc.* | 2,424 | |||||||||
110 | Acme Packet, Inc.* | 2,875 | |||||||||
97 | Actel Corp.* | 1,505 | |||||||||
172 | Actuate Corp.* | 974 | |||||||||
460 | Adaptec, Inc.* | 1,421 | |||||||||
163 | Advanced Analogic Technologies, Inc.* | 619 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
119 | Advanced Energy Industries, Inc.* | $ | 1,752 | ||||||||
25 | Aixtron AG ADR (Germany) | 785 | |||||||||
221 | Alvarion Ltd. (Israel)* | 831 | |||||||||
86 | American Software, Inc., Class A | 550 | |||||||||
515 | Amkor Technology, Inc.* | 3,883 | |||||||||
241 | Anadigics, Inc.* | 1,212 | |||||||||
57 | Anaren, Inc.* | 845 | |||||||||
252 | Applied Micro Circuits Corp.* | 2,843 | |||||||||
28 | Archipelago Learning, Inc.* | 406 | |||||||||
128 | ArcSight, Inc.* | 2,909 | |||||||||
283 | ARM Holdings PLC ADR (United Kingdom) | 3,235 | |||||||||
581 | Art Technology Group, Inc.* | 2,487 | |||||||||
252 | Aruba Networks, Inc.* | 3,165 | |||||||||
31 | ASM International NV (Netherlands)* | 806 | |||||||||
119 | ATMI, Inc.* | 2,157 | |||||||||
227 | Aviat Networks, Inc.* | 1,475 | |||||||||
142 | Avid Technology, Inc.* | 2,073 | |||||||||
36 | Bel Fuse, Inc., Class B | 843 | |||||||||
8 | BEL Fuse, Inc., Class A | 174 | |||||||||
189 | BigBand Networks, Inc.* | 624 | |||||||||
67 | Black Box Corp. | 2,090 | |||||||||
155 | Blue Coat Systems, Inc.* | 5,042 | |||||||||
77 | Bottomline Technologies, Inc.* | 1,340 | |||||||||
265 | Brightpoint, Inc.* | 2,144 | |||||||||
245 | Brooks Automation, Inc.* | 2,381 | |||||||||
27 | Cass Information Systems, Inc. | 859 | |||||||||
304 | CDC Corp., Class A (Hong Kong)* | 809 | |||||||||
135 | Ceragon Networks Ltd. (Israel)* | 1,357 | |||||||||
76 | CEVA, Inc.* | 930 | |||||||||
34 | Changyou.com Ltd. ADR (Cayman Islands)* | 1,115 | |||||||||
64 | China Finance Online Co. Ltd. ADR (China)* | 480 | |||||||||
139 | China Information Security Technology, Inc.* | 840 | |||||||||
247 | Cirrus Logic, Inc.* | 3,139 | |||||||||
103 | Cogo Group, Inc.* | 725 | |||||||||
89 | Cohu, Inc. | 1,437 | |||||||||
86 | comScore, Inc.* | 1,561 | |||||||||
95 | Comverge, Inc.* | 1,077 | |||||||||
80 | Constant Contact, Inc.* | 2,044 | |||||||||
31 | CPI International, Inc.* | 416 | |||||||||
133 | Cray, Inc.* | 899 | |||||||||
156 | Daktronics, Inc. | 1,307 | |||||||||
75 | Deltek, Inc.* | 590 | |||||||||
83 | Demandtec, Inc.* | 561 | |||||||||
233 | Descartes Systems Group, Inc. (The) (Canada)* | 1,421 | |||||||||
107 | DG Fastchannel, Inc.* | 3,764 | |||||||||
94 | Digi International, Inc.* | 1,007 | |||||||||
124 | Diodes, Inc.* | 2,662 | |||||||||
124 | DivX, Inc.* | 1,037 | |||||||||
83 | Double-Take Software, Inc.* | 892 | |||||||||
138 | DragonWave, Inc. (Canada)* | 1,173 | |||||||||
87 | DSP Group, Inc.* | 711 |
See Notes to Financial Statements.
55
Schedule of Investments (Continued)
PowerShares FTSE NASDAQ Small Cap Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
66 | DTS, Inc.* | $ | 2,194 | ||||||||
97 | Ebix, Inc.* | 1,578 | |||||||||
116 | Echelon Corp.* | 1,096 | |||||||||
50 | Echo Global Logistics, Inc.* | 674 | |||||||||
68 | Electro Rent Corp. | 972 | |||||||||
104 | Electro Scientific Industries, Inc.* | 1,432 | |||||||||
58 | EMS Technologies, Inc.* | 922 | |||||||||
495 | Entegris, Inc.* | 3,064 | |||||||||
232 | Epicor Software Corp.* | 2,130 | |||||||||
137 | EPIQ Systems, Inc.* | 1,651 | |||||||||
166 | Exar Corp.* | 1,227 | |||||||||
33 | ExlService Holdings, Inc.* | 525 | |||||||||
340 | Extreme Networks, Inc.* | 1,132 | |||||||||
93 | EZchip Semiconductor Ltd. (Israel)* | 1,810 | |||||||||
127 | FalconStor Software, Inc.* | 380 | |||||||||
61 | FARO Technologies, Inc.* | 1,538 | |||||||||
285 | Finisar Corp.* | 4,264 | |||||||||
64 | Forrester Research, Inc.* | 2,055 | |||||||||
24 | Fundtech Ltd. (Israel)* | 312 | |||||||||
79 | Funtalk China Holdings Ltd. (Cayman Islands)* | 484 | |||||||||
155 | GigaMedia Ltd. (Taiwan, Republic of China)* | 467 | |||||||||
152 | Gilat Satellite Networks Ltd. (Israel)* | 921 | |||||||||
81 | Globecomm Systems, Inc.* | 631 | |||||||||
147 | Hackett Group, Inc. (The)* | 413 | |||||||||
366 | Harmonic, Inc.* | 2,503 | |||||||||
351 | Himax Technologies, Inc. ADR (Taiwan, Republic of China) | 1,099 | |||||||||
33 | Hughes Communications, Inc.* | 921 | |||||||||
52 | ICx Technologies, Inc.* | 367 | |||||||||
104 | iGATE Corp. | 1,287 | |||||||||
106 | Immersion Corp.* | 594 | |||||||||
163 | infoGROUP, Inc.* | 1,306 | |||||||||
120 | Information Services Group, Inc.* | 413 | |||||||||
135 | InfoSpace, Inc.* | 1,413 | |||||||||
173 | Insight Enterprises, Inc.* | 2,600 | |||||||||
66 | Integral Systems, Inc.* | 575 | |||||||||
49 | Interactive Intelligence, Inc.* | 969 | |||||||||
192 | Internap Network Services Corp.* | 1,110 | |||||||||
119 | Internet Brands, Inc., Class A* | 1,232 | |||||||||
140 | Internet Capital Group, Inc.* | 1,385 | |||||||||
28 | Internet Gold-Golden Lines Ltd. (Israel)* | 794 | |||||||||
83 | Intevac, Inc.* | 1,155 | |||||||||
74 | Isilon Systems, Inc.* | 961 | |||||||||
62 | Ituran Location and Control Ltd. (Israel)* | 924 | |||||||||
95 | Ixia* | 974 | |||||||||
88 | IXYS Corp.* | 795 | |||||||||
153 | JDA Software Group, Inc.* | 4,422 | |||||||||
86 | Kenexa Corp.* | 1,291 | |||||||||
55 | Keynote Systems, Inc. | 604 | |||||||||
128 | Knot, Inc. (The)* | 1,038 | |||||||||
130 | KongZhong Corp. ADR (China)* | 941 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
252 | Kopin Corp.* | $ | 1,061 | ||||||||
265 | Kulicke & Soffa Industries, Inc.* | 2,173 | |||||||||
440 | Lattice Semiconductor Corp.* | 2,319 | |||||||||
128 | Limelight Networks, Inc.* | 515 | |||||||||
77 | Liquidity Services, Inc.* | 875 | |||||||||
82 | Littelfuse, Inc.* | 3,463 | |||||||||
185 | LivePerson, Inc.* | 1,528 | |||||||||
64 | LogMeIn, Inc.* | 1,497 | |||||||||
26 | LoopNet, Inc.* | 293 | |||||||||
77 | Loral Space & Communications, Inc.* | 3,316 | |||||||||
64 | Manhattan Associates, Inc.* | 1,834 | |||||||||
96 | Marchex, Inc., Class B | 505 | |||||||||
190 | Mattson Technology, Inc.* | 855 | |||||||||
99 | Maxwell Technologies, Inc.* | 1,429 | |||||||||
110 | Mellanox Technologies Ltd. (Israel)* | 2,728 | |||||||||
89 | Mercury Computer Systems, Inc.* | 1,145 | |||||||||
178 | Micrel, Inc. | 2,077 | |||||||||
35 | MicroStrategy, Inc., Class A* | 2,681 | |||||||||
205 | Microtune, Inc.* | 549 | |||||||||
171 | ModusLink Global Solutions, Inc.* | 1,527 | |||||||||
100 | Monolithic Power Systems, Inc.* | 2,465 | |||||||||
98 | Monotype Imaging Holdings, Inc.* | 1,023 | |||||||||
593 | Move, Inc.* | 1,305 | |||||||||
63 | MTS Systems Corp. | 1,882 | |||||||||
38 | Multi-Fineline Electronix, Inc.* | 985 | |||||||||
31 | NCI, Inc., Class A* | 881 | |||||||||
110 | Ness Technologies, Inc.* | 712 | |||||||||
235 | Netlogic Microsystems, Inc.* | 7,325 | |||||||||
157 | Netscout Systems, Inc.* | 2,280 | |||||||||
137 | Newport Corp.* | 1,621 | |||||||||
180 | NIC, Inc. | 1,269 | |||||||||
117 | Novatel Wireless, Inc.* | 801 | |||||||||
17 | NVE Corp.* | 820 | |||||||||
141 | O2micro International Ltd. ADR (Cayman Islands)* | 987 | |||||||||
161 | Oclaro, Inc.* | 2,468 | |||||||||
190 | OmniVision Technologies, Inc.* | 3,336 | |||||||||
114 | Online Resources Corp.* | 531 | |||||||||
79 | Oplink Communications, Inc.* | 1,194 | |||||||||
59 | OPNET Technologies, Inc. | 948 | |||||||||
253 | Opnext, Inc.* | 595 | |||||||||
120 | Orbcomm, Inc.* | 265 | |||||||||
130 | Orbotech Ltd. (Israel)* | 1,573 | |||||||||
67 | OSI Systems, Inc.* | 1,745 | |||||||||
31 | PC Connection, Inc.* | 213 | |||||||||
72 | PC-Tel, Inc.* | 469 | |||||||||
56 | Pegasystems, Inc. | 1,774 | |||||||||
117 | Perficient, Inc.* | 1,459 | |||||||||
97 | Pericom Semiconductor Corp.* | 1,133 | |||||||||
133 | Phoenix Technologies Ltd.* | 398 | |||||||||
100 | Power Integrations, Inc. | 3,848 |
See Notes to Financial Statements.
56
Schedule of Investments (Continued)
PowerShares FTSE NASDAQ Small Cap Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
333 | Power-One, Inc.* | $ | 2,617 | ||||||||
139 | Presstek, Inc.* | 642 | |||||||||
88 | PRGX Global, Inc.* | 595 | |||||||||
47 | QAD, Inc.* | 259 | |||||||||
125 | Radiant Systems, Inc.* | 1,759 | |||||||||
90 | RadiSys Corp.* | 881 | |||||||||
74 | RADvision Ltd. (Israel)* | 473 | |||||||||
72 | RADWARE Ltd. (Israel)* | 1,425 | |||||||||
386 | RealNetworks, Inc.* | 1,602 | |||||||||
44 | Renaissance Learning, Inc. | 625 | |||||||||
58 | Retalix Ltd. (Israel)* | 736 | |||||||||
48 | RightNow Technologies, Inc.* | 787 | |||||||||
35 | Rimage Corp.* | 614 | |||||||||
57 | Rubicon Technology, Inc.* | 1,547 | |||||||||
88 | Rudolph Technologies, Inc.* | 839 | |||||||||
199 | S1 Corp.* | 1,228 | |||||||||
295 | Sanmina-SCI Corp.* | 5,260 | |||||||||
117 | Seachange International, Inc.* | 975 | |||||||||
68 | Shoretel, Inc.* | 445 | |||||||||
118 | Sierra Wireless, Inc. (Canada)* | 949 | |||||||||
117 | Sigma Designs, Inc.* | 1,388 | |||||||||
115 | Silicon Graphics International Corp.* | 1,137 | |||||||||
286 | Silicon Image, Inc.* | 1,064 | |||||||||
105 | Silicon Motion Technology Corp. ADR (Taiwan, Republic of China)* | 571 | |||||||||
177 | SMART Modular Technologies (WWH), Inc.* | 1,243 | |||||||||
127 | Smith Micro Software, Inc.* | 1,205 | |||||||||
206 | SonicWALL, Inc.* | 2,087 | |||||||||
77 | Sourcefire, Inc.* | 1,722 | |||||||||
45 | Stamps.com, Inc.* | 477 | |||||||||
84 | Standard Microsystems Corp.* | 2,157 | |||||||||
143 | STEC, Inc.* | 1,986 | |||||||||
77 | Stratasys, Inc.* | 1,836 | |||||||||
200 | SuccessFactors, Inc.* | 4,186 | |||||||||
102 | Super Micro Computer, Inc.* | 1,446 | |||||||||
49 | Supertex, Inc.* | 1,323 | |||||||||
177 | Support.Com, Inc.* | 772 | |||||||||
99 | Switch & Data Facilities Co., Inc.* | 1,900 | |||||||||
167 | Symmetricom, Inc.* | 1,107 | |||||||||
131 | Symyx Technologies, Inc.* | 714 | |||||||||
35 | Synchronoss Technologies, Inc.* | 715 | |||||||||
146 | Taleo Corp., Class A* | 3,793 | |||||||||
47 | Techtarget, Inc.* | 228 | |||||||||
169 | TeleCommunication Systems, Inc., Class A* | 1,168 | |||||||||
246 | Terremark Worldwide, Inc.* | 1,764 | |||||||||
52 | The9 Ltd. ADR (China)* | 335 | |||||||||
255 | THQ, Inc.* | 1,938 | |||||||||
418 | TiVo, Inc.* | 7,323 | |||||||||
25 | Travelzoo, Inc.* | 498 | |||||||||
333 | Trident Microsystems, Inc.* | 576 | |||||||||
575 | TriQuint Semiconductor, Inc.* | 4,335 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
164 | TTM Technologies, Inc.* | $ | 1,781 | ||||||||
93 | Ultimate Software Group, Inc.* | 3,111 | |||||||||
90 | Ultratech, Inc.* | 1,322 | |||||||||
242 | United Online, Inc. | 1,929 | |||||||||
140 | Universal Display Corp.* | 1,869 | |||||||||
493 | UTStarcom, Inc.* | 1,405 | |||||||||
107 | VASCO Data Security International, Inc.* | 693 | |||||||||
150 | Veeco Instruments, Inc.* | 6,598 | |||||||||
67 | Virtusa Corp.* | 689 | |||||||||
55 | Vocus, Inc.* | 938 | |||||||||
96 | Volterra Semiconductor Corp.* | 2,300 | |||||||||
33 | Xyratex Ltd. (Bermuda)* | 581 | |||||||||
50 | Yucheng Technologies Ltd. (China)* | 191 | |||||||||
242 | Zix Corp.* | 595 | |||||||||
195 | Zoran Corp.* | 1,897 | |||||||||
66 | Zygo Corp.* | 624 | |||||||||
332,678 | |||||||||||
Materials—2.5% | |||||||||||
99 | A. Schulman, Inc. | 2,575 | |||||||||
19 | AEP Industries, Inc.* | 525 | |||||||||
400 | Altair Nanotechnologies, Inc.* | 234 | |||||||||
106 | Balchem Corp. | 2,750 | |||||||||
260 | Century Aluminum Co.* | 3,505 | |||||||||
30 | China Natural Resources, Inc. (Hong Kong)* | 345 | |||||||||
87 | DRDGOLD Ltd. ADR (South Africa)* | 438 | |||||||||
212 | Globe Specialty Metals, Inc.* | 2,650 | |||||||||
90 | Gulf Resources, Inc.* | 967 | |||||||||
46 | Haynes International, Inc. | 1,652 | |||||||||
165 | Horsehead Holding Corp.* | 1,960 | |||||||||
105 | ICO, Inc. | 900 | |||||||||
60 | Innophos Holdings, Inc. | 1,709 | |||||||||
90 | Innospec, Inc. | 1,198 | |||||||||
99 | Landec Corp.* | 607 | |||||||||
110 | Lihir Gold Ltd. ADR (Australia) | 3,902 | |||||||||
41 | Olympic Steel, Inc. | 1,303 | |||||||||
43 | Penford Corp.* | 398 | |||||||||
146 | Senomyx, Inc.* | 623 | |||||||||
154 | Shengda Tech, Inc.* | 1,061 | |||||||||
7 | U.S. Lime & Minerals, Inc.* | 285 | |||||||||
162 | Yongye International, Inc.* | 1,236 | |||||||||
131 | Zoltek Cos., Inc.* | 1,289 | |||||||||
32,112 | |||||||||||
Telecommunication Services—1.6% | |||||||||||
167 | Alaska Communications Systems Group, Inc. | 1,429 | |||||||||
42 | Atlantic Tele-Network, Inc. | 2,318 | |||||||||
82 | Cbeyond, Inc.* | 1,261 | |||||||||
127 | Cogent Communications Group, Inc.* | 1,297 | |||||||||
84 | Consolidated Communications Holdings, Inc. | 1,558 | |||||||||
148 | General Communication, Inc., Class A* | 910 | |||||||||
755 | ICO Global Communications Holdings Ltd.* | 1,132 |
See Notes to Financial Statements.
57
Schedule of Investments (Continued)
PowerShares FTSE NASDAQ Small Cap Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
201 | Iridium Communications, Inc.* | $ | 1,620 | ||||||||
127 | Neutral Tandem, Inc.* | 2,153 | |||||||||
414 | PAETEC Holding Corp.* | 2,062 | |||||||||
44 | Partner Communications Co. Ltd. ADR (Israel) | 864 | |||||||||
89 | Shenandoah Telecommunications Co. | 1,581 | |||||||||
54 | SureWest Communications* | 464 | |||||||||
87 | USA Mobility, Inc. | 1,213 | |||||||||
19,862 | |||||||||||
Utilities—0.3% | |||||||||||
50 | Cadiz, Inc.* | 624 | |||||||||
60 | China Natural Gas, Inc.* | 545 | |||||||||
55 | Consolidated Water Co. Ltd. (Cayman Islands) | 778 | |||||||||
51 | Middlesex Water Co. | 921 | |||||||||
95 | Southwest Water Co. | 1,014 | |||||||||
3,882 | |||||||||||
Total Investments (Cost $1,188,813)—99.7% | 1,263,986 | ||||||||||
Other assets less liabilities—0.3% | 4,028 | ||||||||||
Net Assets—100.0% | $ | 1,268,014 |
Investment Abbreviations:
ADR – American Depositary Receipt
REIT – Real Estate Investment Trust
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
58
Schedule of Investments
PowerShares Zacks Micro Cap Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.0% | |||||||||||
Consumer Discretionary—22.4% | |||||||||||
41,644 | A.C. Moore Arts & Crafts, Inc.* | $ | 169,908 | ||||||||
17,024 | AH Belo Corp., Class A* | 144,704 | |||||||||
14,873 | Alloy, Inc.* | 115,266 | |||||||||
5,051 | America's Car-Mart, Inc.* | 127,942 | |||||||||
11,243 | Arctic Cat, Inc.* | 165,834 | |||||||||
9,167 | Asbury Automotive Group, Inc.* | 142,547 | |||||||||
15,678 | Audiovox Corp., Class A* | 145,962 | |||||||||
26,884 | Beazer Homes USA, Inc.* | 176,628 | |||||||||
18,764 | Benihana, Inc., Class A* | 127,783 | |||||||||
8,025 | Big 5 Sporting Goods Corp. | 136,024 | |||||||||
318 | Biglari Holdings, Inc.* | 124,417 | |||||||||
3,910 | Blyth, Inc. | 225,372 | |||||||||
9,149 | Bon-Ton Stores, Inc. (The)* | 156,631 | |||||||||
16,856 | Books-A-Million, Inc. | 124,734 | |||||||||
32,827 | Borders Group, Inc.* | 83,381 | |||||||||
13,956 | Brookfield Homes Corp.* | 156,447 | |||||||||
7,876 | Brown Shoe Co., Inc. | 148,069 | |||||||||
17,137 | Build-A-Bear Workshop, Inc.* | 163,830 | |||||||||
22,150 | Cache, Inc.* | 151,284 | |||||||||
31,654 | Casual Male Retail Group, Inc.* | 129,465 | |||||||||
22,356 | Charming Shoppes, Inc.* | 126,311 | |||||||||
22,843 | China Education Alliance, Inc.* | 110,789 | |||||||||
16,688 | ChinaCast Education Corp.* | 112,310 | |||||||||
15,247 | Christopher & Banks Corp. | 149,268 | |||||||||
15,584 | Conn's, Inc.* | 148,516 | |||||||||
3,984 | Core-Mark Holding Co., Inc.* | 121,592 | |||||||||
10,177 | Culp, Inc.* | 121,513 | |||||||||
11,225 | Dolan Media Co.* | 133,465 | |||||||||
34,180 | drugstore.com, Inc.* | 125,099 | |||||||||
14,442 | E.W. Scripps Co., Class A* | 157,995 | |||||||||
10,271 | Entercom Communications Corp., Class A* | 149,546 | |||||||||
21,215 | Exide Technologies* | 126,017 | |||||||||
18,970 | Furniture Brands International, Inc.* | 157,072 | |||||||||
14,704 | Gaiam, Inc., Class A | 133,218 | |||||||||
4,434 | G-III Apparel Group Ltd.* | 126,812 | |||||||||
53,056 | Gray Television, Inc.* | 198,960 | |||||||||
38,371 | Great Wolf Resorts, Inc.* | 123,171 | |||||||||
15,678 | Isle of Capri Casinos, Inc.* | 170,733 | |||||||||
46,396 | Joe's Jeans, Inc.* | 114,134 | |||||||||
29,053 | Journal Communications, Inc., Class A* | 164,730 | |||||||||
5,818 | Kirkland's, Inc.* | 129,567 | |||||||||
6,810 | Landry's Restaurants, Inc.* | 157,243 | |||||||||
9,728 | La-Z-Boy, Inc.* | 126,853 | |||||||||
18,633 | Leapfrog Enterprises, Inc.* | 127,450 | |||||||||
35,994 | Lee Enterprises, Inc.* | 136,057 | |||||||||
19,064 | Lithia Motors, Inc., Class A* | 152,131 | |||||||||
43,571 | LJ International, Inc. (British Virgin Islands)* | 115,899 | |||||||||
8,325 | M/I Homes, Inc.* | 129,870 | |||||||||
9,391 | Marcus Corp. | 120,674 | |||||||||
11,337 | MarineMax, Inc.* | 126,408 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
21,870 | Martha Stewart Living Omnimedia, Inc., Class A* | $ | 146,092 | ||||||||
24,845 | McClatchy Co. (The), Class A* | 135,405 | |||||||||
14,723 | Media General, Inc., Class A* | 186,246 | |||||||||
5,818 | Meritage Homes Corp.* | 138,352 | |||||||||
10,814 | Movado Group, Inc.* | 134,202 | |||||||||
31,280 | Multimedia Games, Inc.* | 142,950 | |||||||||
13,657 | O'Charley's, Inc.* | 130,424 | |||||||||
6,005 | Oxford Industries, Inc. | 129,648 | |||||||||
22,973 | Pacific Sunwear of California, Inc.* | 116,243 | |||||||||
12,141 | Pep Boys - Manny, Moe & Jack (The) | 152,127 | |||||||||
5,388 | Perry Ellis International, Inc.* | 130,012 | |||||||||
40,017 | Radio One, Inc., Class D* | 201,686 | |||||||||
8,157 | RC2 Corp.* | 149,844 | |||||||||
16,893 | Red Lion Hotels Corp.* | 129,062 | |||||||||
4,995 | Red Robin Gourmet Burgers, Inc.* | 121,928 | |||||||||
12,834 | Retail Ventures, Inc.* | 138,864 | |||||||||
9,541 | Rick's Cabaret International, Inc.* | 118,022 | |||||||||
11,543 | Ruby Tuesday, Inc.* | 129,166 | |||||||||
23,030 | Ruth's Hospitality Group, Inc.* | 125,053 | |||||||||
5,332 | Shoe Carnival, Inc.* | 147,483 | |||||||||
13,208 | SORL Auto Parts, Inc.* | 139,873 | |||||||||
21,795 | Spartan Motors, Inc. | 134,475 | |||||||||
7,932 | Stage Stores, Inc. | 120,963 | |||||||||
12,310 | Standard Motor Products, Inc. | 131,225 | |||||||||
26,996 | Standard Pacific Corp.* | 173,044 | |||||||||
13,507 | Stein Mart, Inc.* | 128,046 | |||||||||
6,473 | Steinway Musical Instruments, Inc.* | 124,023 | |||||||||
19,532 | Stewart Enterprises, Inc., Class A | 132,427 | |||||||||
7,596 | Superior Industries International, Inc. | 128,069 | |||||||||
16,164 | Tongxin International Ltd. (British Virgin Islands)* | 123,493 | |||||||||
34,572 | TravelCenters of America LLC* | 140,708 | |||||||||
18,521 | Tuesday Morning Corp.* | 104,644 | |||||||||
33,525 | Unifi, Inc.* | 128,401 | |||||||||
12,310 | Universal Travel Group* | 112,390 | |||||||||
36,761 | ValueVision Media, Inc., Class A* | 113,224 | |||||||||
11,524 | Wonder Auto Technology, Inc.* | 133,333 | |||||||||
44,525 | Zale Corp.* | 145,151 | |||||||||
12,025,929 | |||||||||||
Consumer Staples—3.1% | |||||||||||
27,801 | AgFeed Industries, Inc. (China)* | 119,544 | |||||||||
29,915 | American Oriental Bioengineering, Inc. (China)* | 121,156 | |||||||||
11,637 | B&G Foods, Inc., Class A | 120,210 | |||||||||
13,320 | Central Garden & Pet Co., Class A* | 137,596 | |||||||||
19,849 | China Marine Food Group Ltd.* | 122,270 | |||||||||
15,753 | Cott Corp. (Canada)* | 131,853 | |||||||||
8,232 | Inter Parfums, Inc. | 142,249 | |||||||||
8,269 | John B. Sanfilippo & Son, Inc.* | 124,283 |
See Notes to Financial Statements.
59
Schedule of Investments (Continued)
PowerShares Zacks Micro Cap Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
15,883 | MGP Ingredients, Inc.* | $ | 123,411 | ||||||||
21,215 | Omega Protein Corp.* | 113,500 | |||||||||
9,765 | Pantry, Inc. (The)* | 154,482 | |||||||||
4,191 | Seneca Foods Corp., Class A* | 137,632 | |||||||||
29,409 | SunOpta, Inc. (Canada)* | 133,223 | |||||||||
1,681,409 | |||||||||||
Energy—9.2% | |||||||||||
34,479 | Allis-Chalmers Energy, Inc.* | 138,950 | |||||||||
17,941 | American Oil & Gas, Inc.* | 129,175 | |||||||||
19,457 | Atlas Pipeline Holdings LP | 123,941 | |||||||||
8,775 | Atlas Pipeline Partners LP | 126,623 | |||||||||
15,827 | Basic Energy Services, Inc.* | 161,594 | |||||||||
41,513 | BioFuel Energy Corp.* | 108,764 | |||||||||
8,175 | BreitBurn Energy Partners LP | 127,203 | |||||||||
25,967 | Bronco Drilling Co., Inc.* | 124,122 | |||||||||
13,806 | China North East Petroleum Holdings Ltd.* | 121,907 | |||||||||
34,872 | Constellation Energy Partners LLC | 123,447 | |||||||||
11,356 | Crosstex Energy LP* | 132,411 | |||||||||
14,050 | Crosstex Energy, Inc.* | 126,872 | |||||||||
4,171 | Dawson Geophysical Co.* | 122,169 | |||||||||
19,494 | Eagle Rock Energy Partners LP | 136,653 | |||||||||
16,930 | Geokinetics, Inc.* | 147,968 | |||||||||
5,462 | Global Partners LP | 125,298 | |||||||||
8,550 | Green Plains Renewable Energy, Inc.* | 117,391 | |||||||||
5,612 | Gulf Island Fabrication, Inc. | 134,520 | |||||||||
16,201 | Harvest Natural Resources, Inc.* | 143,055 | |||||||||
35,789 | Kodiak Oil & Gas Corp. (Canada)* | 142,440 | |||||||||
13,601 | K-Sea Transportation Partners LP | 119,281 | |||||||||
40,147 | Magnum Hunter Resources Corp.* | 186,282 | |||||||||
7,689 | Natural Gas Services Group, Inc.* | 137,864 | |||||||||
12,722 | North American Energy Partners, Inc. (Canada)* | 143,504 | |||||||||
5,275 | Petroleum Development Corp.* | 123,488 | |||||||||
5,762 | PHI, Inc.* | 119,792 | |||||||||
17,324 | Pioneer Drilling Co.* | 127,158 | |||||||||
5,837 | Quicksilver Gas Services LP | 123,219 | |||||||||
10,720 | Rex Energy Corp.* | 142,576 | |||||||||
7,539 | Rex Stores Corp.* | 129,369 | |||||||||
9,111 | Superior Well Services, Inc.* | 132,109 | |||||||||
4,976 | T-3 Energy Services, Inc.* | 148,036 | |||||||||
4,472 | TransMontaigne Partners LP | 133,534 | |||||||||
52,589 | Trico Marine Services, Inc.* | 172,492 | |||||||||
19,812 | Union Drilling, Inc.* | 131,354 | |||||||||
37,903 | Uranium Energy Corp.* | 108,403 | |||||||||
21,140 | USEC, Inc.* | 126,840 | |||||||||
4,919,804 | |||||||||||
Financials—20.9% | |||||||||||
20,971 | Advance America Cash Advance Centers, Inc. | 119,954 | |||||||||
4,771 | American Capital Agency Corp. REIT | 131,250 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
7,352 | American Safety Insurance Holdings Ltd. (Bermuda)* | $ | 118,955 | ||||||||
13,507 | Ameris Bancorp | 150,333 | |||||||||
37,659 | Arbor Realty Trust, Inc. REIT* | 153,649 | |||||||||
6,848 | Arlington Asset Investment Corp., Class A | 138,056 | |||||||||
17,024 | Ashford Hospitality Trust, Inc. REIT* | 158,323 | |||||||||
17,324 | Asta Funding, Inc. | 133,914 | |||||||||
13,713 | Bancorp, Inc.* | 121,634 | |||||||||
68,940 | BankAtlantic Bancorp, Inc., Class A* | 180,623 | |||||||||
6,661 | Berkshire Hills Bancorp, Inc. | 139,881 | |||||||||
8,755 | BofI Holding, Inc.* | 154,351 | |||||||||
8,513 | Calamos Asset Management, Inc., Class A | 105,987 | |||||||||
21,982 | CapLease, Inc. REIT | 128,155 | |||||||||
15,434 | Cedar Shopping Centers, Inc. REIT | 122,855 | |||||||||
25,162 | Center Financial Corp.* | 169,592 | |||||||||
32,104 | China Housing & Land Development, Inc.* | 111,080 | |||||||||
21,626 | Cohen & Co., Inc. REIT* | 123,917 | |||||||||
6,005 | Columbia Banking System, Inc. | 134,992 | |||||||||
7,988 | Compass Diversified Holdings | 115,986 | |||||||||
21,552 | Cowen Group, Inc., Class A* | 116,381 | |||||||||
21,252 | Education Realty Trust, Inc. REIT | 150,252 | |||||||||
7,427 | Encore Capital Group, Inc.* | 170,895 | |||||||||
4,059 | Evercore Partners, Inc., Class A | 145,475 | |||||||||
26,827 | FBR Capital Markets Corp.* | 126,892 | |||||||||
10,776 | Federal Agricultural Mortgage Corp., Class C | 242,676 | |||||||||
21,402 | FelCor Lodging Trust, Inc. REIT* | 173,570 | |||||||||
10,513 | Fifth Street Finance Corp. | 134,041 | |||||||||
8,344 | Financial Institutions, Inc. | 134,172 | |||||||||
50,624 | First BanCorp. | 107,323 | |||||||||
12,066 | First Defiance Financial Corp. | 162,891 | |||||||||
8,100 | First Financial Holdings, Inc. | 114,372 | |||||||||
15,733 | First Industrial Realty Trust, Inc. REIT* | 125,549 | |||||||||
42,973 | First Marblehead Corp. (The)* | 150,835 | |||||||||
8,119 | First Potomac Realty Trust REIT | 131,690 | |||||||||
9,635 | Flushing Financial Corp. | 131,132 | |||||||||
43,739 | Gramercy Capital Corp. REIT* | 110,660 | |||||||||
50,849 | Hanmi Financial Corp.* | 151,530 | |||||||||
11,524 | Hercules Technology Growth Capital, Inc. | 124,920 | |||||||||
23,553 | Hersha Hospitality Trust REIT | 135,901 | |||||||||
8,100 | Horace Mann Educators Corp. | 139,401 | |||||||||
26,584 | iStar Financial, Inc. REIT* | 178,379 | |||||||||
25,799 | Kite Realty Group Trust REIT | 139,831 | |||||||||
21,552 | Kohlberg Capital Corp. | 121,769 | |||||||||
16,519 | Maiden Holdings Ltd. (Bermuda) | 123,727 | |||||||||
23,423 | MCG Capital Corp.* | 155,294 | |||||||||
15,453 | Meadowbrook Insurance Group, Inc. | 122,079 | |||||||||
13,938 | Nara Bancorp, Inc.* | 125,442 | |||||||||
8,662 | National Financial Partners Corp.* | 133,308 | |||||||||
655 | National Western Life Insurance Co., Class A | 125,197 | |||||||||
19,120 | NewStar Financial, Inc.* | 146,459 | |||||||||
7,147 | Northrim Bancorp, Inc. | 123,357 |
See Notes to Financial Statements.
60
Schedule of Investments (Continued)
PowerShares Zacks Micro Cap Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
28,979 | NorthStar Realty Finance Corp. REIT | $ | 136,781 | ||||||||
7,334 | One Liberty Properties, Inc. REIT | 125,045 | |||||||||
4,789 | Oppenheimer Holdings, Inc., Class A | 139,216 | |||||||||
9,036 | Oriental Financial Group, Inc. | 151,082 | |||||||||
6,492 | Parkway Properties, Inc. REIT | 127,892 | |||||||||
11,786 | PennantPark Investment Corp. | 128,939 | |||||||||
9,785 | Pennsylvania Real Estate Investment Trust REIT | 154,505 | |||||||||
12,123 | Penson Worldwide, Inc.* | 113,956 | |||||||||
7,409 | Peoples Bancorp, Inc. | 128,472 | |||||||||
50,418 | Phoenix Cos., Inc. (The)* | 162,850 | |||||||||
22,506 | PMI Group, Inc. (The)* | 117,256 | |||||||||
12,235 | Presidential Life Corp. | 144,128 | |||||||||
61,625 | RAIT Financial Trust REIT* | 250,197 | |||||||||
10,832 | Ramco-Gershenson Properties Trust REIT | 134,967 | |||||||||
7,539 | Renasant Corp. | 124,620 | |||||||||
18,054 | Resource Capital Corp. REIT | 128,364 | |||||||||
9,391 | Safeguard Scientifics, Inc.* | 129,220 | |||||||||
3,236 | Safety Insurance Group, Inc. | 120,670 | |||||||||
11,076 | SeaBright Insurance Holdings, Inc. | 120,507 | |||||||||
8,849 | Stewart Information Services Corp. | 100,702 | |||||||||
28,717 | Strategic Hotels & Resorts, Inc. REIT* | 184,363 | |||||||||
9,410 | Taylor Capital Group, Inc.* | 128,917 | |||||||||
36,649 | Thomas Properties Group, Inc. | 167,486 | |||||||||
13,339 | Tree.com, Inc.* | 121,385 | |||||||||
27,669 | United Community Banks, Inc.* | 161,587 | |||||||||
7,633 | Walter Investment Management Corp. REIT | 138,386 | |||||||||
7,502 | WesBanco, Inc. | 144,639 | |||||||||
11,056 | Wilshire Bancorp, Inc. | 120,068 | |||||||||
10,139 | Winthrop Realty Trust REIT | 136,876 | |||||||||
11,231,963 | |||||||||||
Health Care—7.7% | |||||||||||
16,631 | Affymetrix, Inc.* | 115,419 | |||||||||
44,862 | Allied Healthcare International, Inc.* | 126,062 | |||||||||
7,820 | Angiodynamics, Inc.* | 125,120 | |||||||||
17,118 | Anika Therapeutics, Inc.* | 120,682 | |||||||||
3,723 | Assisted Living Concepts, Inc., Class A* | 130,677 | |||||||||
39,362 | Athersys, Inc.* | 130,288 | |||||||||
18,577 | BioCryst Pharmaceuticals, Inc.* | 141,185 | |||||||||
15,284 | BioScrip, Inc.* | 136,639 | |||||||||
10,326 | Chindex International, Inc.* | 130,521 | |||||||||
24,900 | Compugen Ltd. (Israel)* | 119,022 | |||||||||
10,851 | Cynosure, Inc., Class A* | 136,723 | |||||||||
40,017 | Five Star Quality Care, Inc.* | 118,450 | |||||||||
5,519 | Hi-Tech Pharmacal Co., Inc.* | 134,277 | |||||||||
44,525 | Keryx Biopharmaceuticals, Inc.* | 250,231 | |||||||||
6,754 | Kindred Healthcare, Inc.* | 120,491 | |||||||||
11,655 | MedCath Corp.* | 115,851 | |||||||||
9,952 | Medical Action Industries, Inc.* | 118,130 | |||||||||
5,949 | OncoGenex Pharmaceutical, Inc.* | 130,878 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
8,025 | Providence Service Corp. (The)* | $ | 133,295 | ||||||||
23,928 | QLT, Inc. (Canada)* | 151,225 | |||||||||
4,472 | RehabCare Group, Inc.* | 127,541 | |||||||||
28,175 | RTI Biologics, Inc.* | 107,910 | |||||||||
34,572 | Sciclone Pharmaceuticals, Inc.* | 144,511 | |||||||||
20,654 | Sinovac Biotech Ltd. (China)* | 119,587 | |||||||||
17,660 | Spectranetics Corp.* | 120,441 | |||||||||
26,472 | Spectrum Pharmaceuticals, Inc.* | 136,596 | |||||||||
12,796 | Sun Healthcare Group, Inc.* | 114,396 | |||||||||
12,160 | Symmetry Medical, Inc.* | 140,570 | |||||||||
11,169 | Syneron Medical Ltd. (Israel)* | 128,444 | |||||||||
33,244 | Tianyin Pharmaceutical Co., Inc. | 116,687 | |||||||||
6,866 | Triple-S Management Corp., Class B* | 124,961 | |||||||||
10,570 | Vanda Pharmaceuticals, Inc.* | 88,471 | |||||||||
4,155,281 | |||||||||||
Industrials—12.2% | |||||||||||
36,200 | Air Transport Services Group, Inc.* | 199,100 | |||||||||
13,601 | American Reprographics Co.* | 135,874 | |||||||||
4,921 | Ampco-Pittsburgh Corp. | 126,519 | |||||||||
7,726 | Apogee Enterprises, Inc. | 106,155 | |||||||||
11,375 | A-Power Energy Generation Systems Ltd.* | 119,324 | |||||||||
38,015 | Astrotech Corp.* | 110,243 | |||||||||
50,624 | China BAK Battery, Inc.* | 101,754 | |||||||||
6,960 | China Yuchai International Ltd. (Bermuda) | 146,856 | |||||||||
2,956 | Consolidated Graphics, Inc.* | 123,886 | |||||||||
5,799 | Ducommun, Inc. | 132,739 | |||||||||
13,919 | Dycom Industries, Inc.* | 147,820 | |||||||||
22,973 | Eagle Bulk Shipping, Inc.* | 133,014 | |||||||||
7,502 | Ennis, Inc. | 138,712 | |||||||||
20,242 | Excel Maritime Carriers Ltd. (Liberia)* | 144,123 | |||||||||
32,365 | ExpressJet Holdings, Inc.* | 129,460 | |||||||||
10,869 | Fushi Copperweld, Inc.* | 120,211 | |||||||||
9,672 | Gibraltar Industries, Inc.* | 145,273 | |||||||||
23,235 | Great Lakes Dredge & Dock Corp. | 125,934 | |||||||||
11,076 | Greenbrier Cos., Inc.* | 180,317 | |||||||||
23,460 | Innerworkings, Inc.* | 140,291 | |||||||||
4,153 | International Shipholding Corp. | 126,002 | |||||||||
5,874 | Jinpan International Ltd. (China) | 102,678 | |||||||||
7,334 | Kelly Services, Inc., Class A* | 117,931 | |||||||||
6,061 | Ladish Co., Inc.* | 166,617 | |||||||||
15,546 | Lydall, Inc.* | 125,301 | |||||||||
20,373 | Metalico, Inc.* | 134,462 | |||||||||
1,646 | NACCO Industries, Inc., Class A | 143,103 | |||||||||
17,118 | On Assignment, Inc.* | 120,340 | |||||||||
26,191 | Paragon Shipping, Inc., Class A | 124,931 | |||||||||
16,426 | Pinnacle Airlines Corp.* | 120,074 | |||||||||
7,389 | Quanex Building Products Corp. | 140,391 | |||||||||
20,616 | Republic Airways Holdings, Inc.* | 129,056 | |||||||||
9,242 | Rush Enterprises, Inc., Class A* | 149,905 | |||||||||
8,793 | Saia, Inc.* | 145,700 |
See Notes to Financial Statements.
61
Schedule of Investments (Continued)
PowerShares Zacks Micro Cap Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
5,369 | School Specialty, Inc.* | $ | 125,957 | ||||||||
15,229 | SFN Group, Inc.* | 130,208 | |||||||||
20,691 | Sparton Corp.* | 120,835 | |||||||||
4,734 | Standex International Corp. | 113,001 | |||||||||
41,925 | Star Bulk Carriers Corp. | 119,486 | |||||||||
6,098 | TAL International Group, Inc. | 158,487 | |||||||||
16,706 | TBS International PLC, Class A (Ireland)* | 134,984 | |||||||||
9,952 | Tecumseh Products Co., Class A* | 127,187 | |||||||||
13,975 | Titan International, Inc. | 173,430 | |||||||||
22,225 | Ultrapetrol Bahamas Ltd.* | 136,017 | |||||||||
3,161 | Universal Forest Products, Inc. | 132,920 | |||||||||
5,931 | Viad Corp. | 138,785 | |||||||||
10,084 | Vitran Corp., Inc. (Canada)* | 153,176 | |||||||||
23,965 | WCA Waste Corp.* | 118,866 | |||||||||
7,726 | Willis Lease Finance Corp.* | 108,473 | |||||||||
6,545,908 | |||||||||||
Information Technology—17.2% | |||||||||||
37,322 | Adaptec, Inc.* | 115,325 | |||||||||
10,926 | Agilysys, Inc. | 118,547 | |||||||||
12,086 | Amtech Systems, Inc.* | 115,663 | |||||||||
25,106 | Anadigics, Inc.* | 126,283 | |||||||||
18,408 | Aviat Networks, Inc.* | 119,652 | |||||||||
38,259 | AXT, Inc.* | 167,192 | |||||||||
6,061 | Bel Fuse, Inc., Class B | 141,949 | |||||||||
3,966 | Black Box Corp. | 123,700 | |||||||||
41,363 | CDC Corp., Class A (Hong Kong)* | 110,026 | |||||||||
24,171 | China Information Security Technology, Inc.* | 145,993 | |||||||||
32,627 | Ciber, Inc.* | 129,529 | |||||||||
20,504 | Cray, Inc.* | 138,607 | |||||||||
12,946 | CTS Corp. | 135,933 | |||||||||
9,523 | Electro Scientific Industries, Inc.* | 131,132 | |||||||||
10,495 | Electronics for Imaging, Inc.* | 134,861 | |||||||||
24,022 | Entropic Communications, Inc.* | 126,836 | |||||||||
12,759 | Epicor Software Corp.* | 117,128 | |||||||||
19,681 | EXFO, Inc. (Canada)* | 120,054 | |||||||||
31,523 | FSI International, Inc.* | 120,418 | |||||||||
19,644 | Gerber Scientific, Inc.* | 141,437 | |||||||||
19,550 | Hutchinson Technology, Inc.* | 119,059 | |||||||||
11,076 | Imation Corp.* | 120,064 | |||||||||
11,038 | InfoSpace, Inc.* | 115,568 | |||||||||
11,562 | Integrated Silicon Solution, Inc.* | 142,559 | |||||||||
14,442 | Internet Capital Group, Inc.* | 142,831 | |||||||||
8,830 | Intevac, Inc.* | 122,914 | |||||||||
8,868 | Kenexa Corp.* | 133,109 | |||||||||
32,982 | Kopin Corp.* | 138,854 | |||||||||
16,837 | Kulicke & Soffa Industries, Inc.* | 138,063 | |||||||||
33,244 | Lattice Semiconductor Corp.* | 175,196 | |||||||||
26,416 | Mattson Technology, Inc.* | 118,872 | |||||||||
8,287 | Measurement Specialties, Inc.* | 136,487 | |||||||||
12,328 | Methode Electronics, Inc., Class A | 136,841 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
15,229 | Mindspeed Technologies, Inc.* | $ | 152,747 | ||||||||
14,480 | ModusLink Global Solutions, Inc.* | 129,306 | |||||||||
12,871 | Nanometrics, Inc.* | 137,720 | |||||||||
19,345 | Ness Technologies, Inc.* | 125,162 | |||||||||
33,899 | NetList, Inc.* | 100,680 | |||||||||
9,765 | Newport Corp.* | 115,520 | |||||||||
22,262 | Nova Measuring Instruments Ltd. (Israel)* | 123,331 | |||||||||
18,128 | Novatel Wireless, Inc.* | 124,177 | |||||||||
53,056 | Openwave Systems, Inc.* | 118,315 | |||||||||
6,586 | Oplink Communications, Inc.* | 99,514 | |||||||||
11,263 | Orbotech Ltd. (Israel)* | 136,282 | |||||||||
10,832 | Perficient, Inc.* | 135,075 | |||||||||
23,965 | Photronics, Inc.* | 130,609 | |||||||||
43,739 | Planar Systems, Inc.* | 114,159 | |||||||||
28,923 | Power-One, Inc.* | 227,335 | |||||||||
63,234 | Qiao Xing Universal Telephone, Inc. (China)* | 107,498 | |||||||||
8,550 | Radiant Systems, Inc.* | 120,298 | |||||||||
5,519 | RADWARE Ltd. (Israel)* | 109,221 | |||||||||
15,341 | Richardson Electronics Ltd. | 176,268 | |||||||||
6,043 | Rubicon Technology, Inc.* | 164,007 | |||||||||
14,237 | Rudolph Technologies, Inc.* | 135,679 | |||||||||
14,480 | Sierra Wireless, Inc. (Canada)* | 116,419 | |||||||||
11,412 | Silicon Graphics International Corp.* | 112,865 | |||||||||
15,827 | SMART Modular Technologies (WWH), Inc.* | 111,106 | |||||||||
13,806 | Smith Micro Software, Inc.* | 131,019 | |||||||||
13,021 | Sonic Solutions, Inc.* | 163,414 | |||||||||
14,050 | SonicWALL, Inc.* | 142,326 | |||||||||
17,548 | StarTek, Inc.* | 118,975 | |||||||||
7,053 | Super Micro Computer, Inc.* | 100,011 | |||||||||
23,105 | Technitrol, Inc. | 124,767 | |||||||||
6,978 | Telestone Technologies Corp.* | 95,319 | |||||||||
17,398 | THQ, Inc.* | 132,225 | |||||||||
13,751 | TTM Technologies, Inc.* | 149,336 | |||||||||
14,330 | Ultra Clean Holdings, Inc.* | 141,437 | |||||||||
43,739 | UTStarcom, Inc.* | 124,656 | |||||||||
7,202 | Xyratex Ltd. (Bermuda)* | 126,755 | |||||||||
11,337 | Zoran Corp.* | 110,309 | |||||||||
13,227 | Zygo Corp.* | 124,995 | |||||||||
9,229,519 | |||||||||||
Materials—6.3% | |||||||||||
9,336 | A.M. Castle & Co.* | 128,090 | |||||||||
19,906 | Boise, Inc.* | 137,152 | |||||||||
5,407 | Brush Engineered Materials, Inc.* | 160,750 | |||||||||
9,336 | Buckeye Technologies, Inc.* | 131,824 | |||||||||
4,901 | China Agritech, Inc.* | 81,014 | |||||||||
8,718 | China Green Agriculture, Inc.* | 110,544 | |||||||||
58,108 | China Precision Steel, Inc.* | 119,702 | |||||||||
23,703 | Fronteer Development Group, Inc. (Canada)* | 145,299 | |||||||||
36,761 | General Moly, Inc.* | 137,486 | |||||||||
29,689 | General Steel Holdings, Inc. (China)* | 110,740 |
See Notes to Financial Statements.
62
Schedule of Investments (Continued)
PowerShares Zacks Micro Cap Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
10,513 | Gulf Resources, Inc.* | $ | 113,015 | ||||||||
3,442 | Haynes International, Inc. | 123,602 | |||||||||
26,584 | Headwaters, Inc.* | 159,504 | |||||||||
10,271 | KapStone Paper and Packaging Corp.* | 132,496 | |||||||||
6,941 | KMG Chemicals, Inc. | 127,992 | |||||||||
23,160 | Mercer International, Inc.* | 127,612 | |||||||||
11,637 | Myers Industries, Inc. | 126,378 | |||||||||
7,708 | Neenah Paper, Inc. | 134,890 | |||||||||
3,742 | Olympic Steel, Inc. | 118,921 | |||||||||
4,509 | Quaker Chemical Corp. | 141,898 | |||||||||
10,420 | Spartech Corp.* | 148,381 | |||||||||
42,074 | Sutor Technology Group Ltd.* | 115,704 | |||||||||
5,088 | Universal Stainless & Alloy Products, Inc.* | 118,703 | |||||||||
20,467 | US Energy Corp. Wyoming* | 125,258 | |||||||||
40,147 | Verso Paper Corp.* | 210,370 | |||||||||
12,665 | Zoltek Cos., Inc.* | 124,624 | |||||||||
3,411,949 | |||||||||||
Telecommunication Services—0.6% | |||||||||||
26,248 | FiberTower Corp.* | 142,789 | |||||||||
18,839 | IDT Corp., Class B* | 186,695 | |||||||||
329,484 | |||||||||||
Utilities—0.4% | |||||||||||
6,941 | Brookfield Infrastructure Partners LP (Bermuda) | 122,509 | |||||||||
12,440 | China Natural Gas, Inc.* | 113,079 | |||||||||
235,588 | |||||||||||
Total Common Stocks and Other Equity Interests (Cost $45,727,166) | 53,766,834 | ||||||||||
Money Market Fund—0.1% | |||||||||||
68,442 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $68,442) | 68,442 | |||||||||
Total Investments (Cost $45,795,608)—100.1% | 53,835,276 | ||||||||||
Liabilities in excess of other assets—(0.1%) | (76,968 | ) | |||||||||
Net Assets—100.0% | $ | 53,758,308 |
Investment Abbreviations:
REIT – Real Estate Investment Trust
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
63
Schedule of Investments
PowerShares Zacks Small Cap Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.0% | |||||||||||
Consumer Discretionary—15.2% | |||||||||||
3,286 | American Greetings Corp., Class A | $ | 80,704 | ||||||||
2,586 | America's Car-Mart, Inc.* | 65,503 | |||||||||
7,448 | Amerigon, Inc.* | 73,065 | |||||||||
190 | Biglari Holdings, Inc.* | 74,337 | |||||||||
4,952 | Brown Shoe Co., Inc. | 93,098 | |||||||||
8,404 | Caribou Coffee Co., Inc.* | 74,375 | |||||||||
2,357 | Carter's, Inc.* | 75,943 | |||||||||
2,970 | Cato Corp. (The), Class A | 70,537 | |||||||||
1,698 | Cavco Industries, Inc.* | 66,511 | |||||||||
3,566 | Cooper Tire & Rubber Co. | 75,670 | |||||||||
2,036 | Core-Mark Holding Co., Inc.* | 62,139 | |||||||||
620 | Deckers Outdoor Corp.* | 87,160 | |||||||||
3,668 | Dillard's, Inc., Class A | 102,997 | |||||||||
2,676 | DineEquity, Inc.* | 110,064 | |||||||||
6,144 | Dolan Media Co.* | 73,052 | |||||||||
7,854 | Exide Technologies* | 46,653 | |||||||||
3,038 | Grand Canyon Education, Inc.* | 73,459 | |||||||||
2,102 | Group 1 Automotive, Inc.* | 65,267 | |||||||||
3,848 | iRobot Corp.* | 77,653 | |||||||||
1,742 | Jo-Ann Stores, Inc.* | 76,857 | |||||||||
5,930 | Kenneth Cole Productions, Inc., Class A* | 73,888 | |||||||||
3,936 | Kirkland's, Inc.* | 87,655 | |||||||||
5,991 | La-Z-Boy, Inc.* | 78,123 | |||||||||
2,941 | Lincoln Educational Services Corp.* | 73,407 | |||||||||
4,062 | Maidenform Brands, Inc.* | 92,695 | |||||||||
7,333 | Retail Ventures, Inc.* | 79,343 | |||||||||
3,322 | Shoe Carnival, Inc.* | 91,886 | |||||||||
12,031 | Sinclair Broadcast Group, Inc., Class A* | 82,894 | |||||||||
2,167 | Skechers U.S.A., Inc., Class A* | 83,104 | |||||||||
10,120 | Spartan Motors, Inc. | 62,440 | |||||||||
7,748 | Standard Motor Products, Inc. | 82,594 | |||||||||
7,691 | Stein Mart, Inc.* | 72,911 | |||||||||
3,724 | Steinway Musical Instruments, Inc.* | 71,352 | |||||||||
8,698 | Stoneridge, Inc.* | 93,851 | |||||||||
1,214 | UniFirst Corp. | 59,328 | |||||||||
3,308 | Universal Technical Institute, Inc.* | 79,260 | |||||||||
2,789,775 | |||||||||||
Consumer Staples—3.3% | |||||||||||
2,622 | American Dairy, Inc.* | 49,818 | |||||||||
1,783 | American Italian Pasta Co., Class A* | 69,947 | |||||||||
1,322 | Boston Beer Co., Inc., Class A* | 75,367 | |||||||||
4,780 | China-Biotics, Inc.* | 85,179 | |||||||||
4,140 | Chiquita Brands International, Inc.* | 62,266 | |||||||||
1,452 | J & J Snack Foods Corp. | 67,649 | |||||||||
3,942 | Revlon, Inc., Class A* | 69,064 | |||||||||
7,522 | Schiff Nutrition International, Inc. | 53,331 | |||||||||
2,250 | Seneca Foods Corp., Class A* | 73,890 | |||||||||
606,511 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
Energy—4.8% | |||||||||||
7,837 | Crosstex Energy, Inc.* | $ | 70,768 | ||||||||
2,364 | Global Partners LP | 54,230 | |||||||||
3,476 | Gulf Island Fabrication, Inc. | 83,320 | |||||||||
5,882 | Gulfport Energy Corp.* | 73,525 | |||||||||
7,746 | Houston American Energy Corp. | 101,473 | |||||||||
926 | Inergy Holdings LP | 67,737 | |||||||||
966 | Lufkin Industries, Inc. | 82,236 | |||||||||
3,865 | Natural Gas Services Group, Inc.* | 69,299 | |||||||||
1,359 | Overseas Shipholding Group, Inc. | 68,031 | |||||||||
3,920 | Patriot Coal Corp.* | 77,185 | |||||||||
3,809 | Stone Energy Corp.* | 62,087 | |||||||||
5,804 | TETRA Technologies, Inc.* | 71,331 | |||||||||
881,222 | |||||||||||
Financials—12.3% | |||||||||||
2,386 | Alliance Financial Corp. | 71,508 | |||||||||
2,184 | American Physicians Capital, Inc. | 73,033 | |||||||||
3,510 | AMERISAFE, Inc.* | 60,021 | |||||||||
5,074 | AmTrust Financial Services, Inc. | 69,159 | |||||||||
1,508 | BancFirst Corp. | 66,563 | |||||||||
6,504 | Cardinal Financial Corp. | 71,219 | |||||||||
4,340 | CNA Surety Corp.* | 72,782 | |||||||||
3,340 | eHealth, Inc.* | 45,791 | |||||||||
3,352 | EZCORP, Inc., Class A* | 69,420 | |||||||||
3,386 | FBL Financial Group, Inc., Class A | 87,494 | |||||||||
3,274 | Forestar Group, Inc.* | 73,796 | |||||||||
1,530 | Infinity Property & Casualty Corp. | 70,579 | |||||||||
7,818 | JMP Group, Inc. | 60,511 | |||||||||
3,060 | Life Partners Holdings, Inc. | 70,686 | |||||||||
4,456 | MarketAxess Holdings, Inc. | 70,048 | |||||||||
9,000 | Meadowbrook Insurance Group, Inc. | 71,100 | |||||||||
1,424 | Navigators Group, Inc. (The)* | 57,145 | |||||||||
3,641 | Nelnet, Inc., Class A | 72,674 | |||||||||
6,632 | Ocwen Financial Corp.* | 76,600 | |||||||||
5,334 | Oriental Financial Group, Inc. | 89,184 | |||||||||
7,454 | Provident New York Bancorp | 76,553 | |||||||||
4,235 | Renasant Corp. | 70,005 | |||||||||
5,066 | Sandy Spring Bancorp, Inc. | 88,402 | |||||||||
3,202 | Southside Bancshares, Inc. | 69,099 | |||||||||
5,064 | SWS Group, Inc. | 56,058 | |||||||||
8,562 | United America Indemnity Ltd., Class A* | 81,339 | |||||||||
4,621 | United Financial Bancorp, Inc. | 64,602 | |||||||||
2,802 | Unitrin, Inc. | 81,959 | |||||||||
2,240 | W.P. Carey & Co. LLC | 68,947 | |||||||||
7,438 | Westfield Financial, Inc. | 67,686 | |||||||||
4,634 | Wilmington Trust Corp. | 80,307 | |||||||||
1,508 | World Acceptance Corp.* | 53,202 | |||||||||
2,257,472 |
See Notes to Financial Statements.
64
Schedule of Investments (Continued)
PowerShares Zacks Small Cap Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
Health Care—9.6% | |||||||||||
3,240 | Align Technology, Inc.* | $ | 55,015 | ||||||||
1,669 | Almost Family, Inc.* | 70,699 | |||||||||
4,804 | American Dental Partners, Inc.* | 61,875 | |||||||||
8,358 | BioScrip, Inc.* | 74,720 | |||||||||
3,150 | Cantel Medical Corp. | 62,874 | |||||||||
9,028 | Celera Corp.* | 67,439 | |||||||||
12,554 | Continucare Corp.* | 42,056 | |||||||||
3,250 | Cyberonics, Inc.* | 63,472 | |||||||||
6,088 | Enzon Pharmaceuticals, Inc.* | 64,411 | |||||||||
1,868 | Genoptix, Inc.* | 72,273 | |||||||||
4,159 | Given Imaging Ltd. (Israel)* | 87,256 | |||||||||
2,829 | Hi-Tech Pharmacal Co., Inc.* | 68,830 | |||||||||
1,744 | ICU Medical, Inc.* | 62,104 | |||||||||
4,568 | Impax Laboratories, Inc.* | 82,681 | |||||||||
6,458 | Jazz Pharmaceuticals, Inc.* | 65,484 | |||||||||
2,829 | Martek Biosciences Corp.* | 62,323 | |||||||||
10,858 | Maxygen, Inc.* | 69,600 | |||||||||
4,478 | Medical Action Industries, Inc.* | 53,154 | |||||||||
5,068 | Omnicell, Inc.* | 67,658 | |||||||||
11,865 | OraSure Technologies, Inc.* | 75,224 | |||||||||
3,734 | PharMerica Corp.* | 72,066 | |||||||||
10,330 | Pozen, Inc.* | 111,874 | |||||||||
2,091 | RehabCare Group, Inc.* | 59,635 | |||||||||
10,120 | Sinovac Biotech Ltd. (China)* | 58,595 | |||||||||
2,900 | Targacept, Inc.* | 69,020 | |||||||||
2,182 | Zoll Medical Corp.* | 66,660 | |||||||||
1,766,998 | |||||||||||
Industrials—21.2% | |||||||||||
5,787 | 3D Systems Corp.* | 90,046 | |||||||||
2,948 | AAON, Inc. | 71,165 | |||||||||
3,128 | ABM Industries, Inc. | 67,221 | |||||||||
6,380 | Aircastle Ltd. (Bermuda) | 76,624 | |||||||||
1,192 | Allegiant Travel Co.* | 61,305 | |||||||||
883 | Ameron International Corp. | 61,271 | |||||||||
4,410 | Apogee Enterprises, Inc. | 60,593 | |||||||||
3,612 | Beacon Roofing Supply, Inc.* | 80,186 | |||||||||
8,411 | Cenveo, Inc.* | 72,082 | |||||||||
3,768 | Chart Industries, Inc.* | 86,626 | |||||||||
5,548 | China Fire & Security Group, Inc.* | 75,897 | |||||||||
5,176 | Comfort Systems USA, Inc. | 72,878 | |||||||||
1,800 | Consolidated Graphics, Inc.* | 75,438 | |||||||||
2,892 | Cornell Cos., Inc.* | 79,530 | |||||||||
1,508 | CoStar Group, Inc.* | 66,277 | |||||||||
8,202 | Diamond Management & Technology Consultants, Inc. | 66,600 | |||||||||
5,062 | DynCorp International, Inc., Class A* | 87,066 | |||||||||
10,530 | Excel Maritime Carriers Ltd. (Liberia)* | 74,974 | |||||||||
2,260 | Exponent, Inc.* | 67,371 | |||||||||
9,360 | Federal Signal Corp. | 75,442 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
7,448 | Greenbrier Cos., Inc.* | $ | 121,253 | ||||||||
5,145 | Griffon Corp.* | 72,544 | |||||||||
10,226 | Hawaiian Holdings, Inc.* | 72,605 | |||||||||
4,962 | Herley Industries, Inc.* | 72,693 | |||||||||
12,814 | Horizon Lines, Inc., Class A | 70,093 | |||||||||
2,598 | ICF International, Inc.* | 60,170 | |||||||||
3,128 | Jinpan International Ltd. (China) | 54,677 | |||||||||
3,984 | Kadant, Inc.* | 79,720 | |||||||||
5,390 | Knoll, Inc. | 75,352 | |||||||||
2,250 | LB Foster Co., Class A* | 66,600 | |||||||||
13,637 | Metalico, Inc.* | 90,004 | |||||||||
2,484 | Mueller Industries, Inc. | 73,651 | |||||||||
2,540 | Northwest Pipe Co.* | 61,265 | |||||||||
8,698 | On Assignment, Inc.* | 61,147 | |||||||||
3,211 | Orion Marine Group, Inc.* | 60,881 | |||||||||
7,978 | Pinnacle Airlines Corp.* | 58,319 | |||||||||
2,076 | Powell Industries, Inc.* | 69,712 | |||||||||
2,126 | Raven Industries, Inc. | 64,545 | |||||||||
7,677 | Safe Bulkers, Inc. (Marshall Islands) | 61,109 | |||||||||
4,716 | Schawk, Inc. | 89,368 | |||||||||
5,861 | Seaspan Corp. (Hong Kong) | 68,632 | |||||||||
10,774 | SFN Group, Inc.* | 92,118 | |||||||||
5,332 | SmartHeat, Inc.* | 44,735 | |||||||||
3,742 | Standard Parking Corp.* | 63,202 | |||||||||
3,197 | Sterling Construction Co., Inc.* | 55,947 | |||||||||
2,712 | Sun Hydraulics Corp. | 75,963 | |||||||||
2,539 | Tennant Co. | 87,570 | |||||||||
1,195 | Triumph Group, Inc. | 92,684 | |||||||||
4,183 | TrueBlue, Inc.* | 66,050 | |||||||||
3,188 | Tutor Perini Corp.* | 77,373 | |||||||||
7,582 | United Rentals, Inc.* | 108,878 | |||||||||
1,114 | United Stationers, Inc.* | 68,199 | |||||||||
1,789 | Universal Forest Products, Inc. | 75,227 | |||||||||
3,880,878 | |||||||||||
Information Technology—22.7% | |||||||||||
3,947 | Acxiom Corp.* | 75,309 | |||||||||
7,224 | Agilysys, Inc. | 78,380 | |||||||||
4,826 | Ariba, Inc.* | 68,867 | |||||||||
3,510 | Bottomline Technologies, Inc.* | 61,074 | |||||||||
5,108 | CEVA, Inc.* | 62,522 | |||||||||
3,712 | Cognex Corp. | 77,618 | |||||||||
4,692 | Cohu, Inc. | 75,776 | |||||||||
3,442 | Constant Contact, Inc.* | 87,943 | |||||||||
1,936 | Cymer, Inc.* | 66,114 | |||||||||
6,324 | Digi International, Inc.* | 67,730 | |||||||||
3,644 | Diodes, Inc.* | 78,237 | |||||||||
10,802 | DivX, Inc.* | 90,305 | |||||||||
7,146 | Echelon Corp.* | 67,530 | |||||||||
3,162 | EchoStar Corp., Class A* | 60,742 | |||||||||
5,198 | Electro Rent Corp. | 74,279 |
See Notes to Financial Statements.
65
Schedule of Investments (Continued)
PowerShares Zacks Small Cap Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
8,640 | Exar Corp.* | $ | 63,850 | ||||||||
5,098 | EZchip Semiconductor Ltd. (Israel)* | 99,233 | |||||||||
12,388 | Gerber Scientific, Inc.* | 89,194 | |||||||||
6,548 | InfoSpace, Inc.* | 68,558 | |||||||||
5,279 | Insight Enterprises, Inc.* | 79,343 | |||||||||
10,520 | Integrated Silicon Solution, Inc.* | 129,712 | |||||||||
8,180 | Ixia* | 83,845 | |||||||||
4,670 | KVH Industries, Inc.* | 70,377 | |||||||||
2,907 | Manhattan Associates, Inc.* | 83,315 | |||||||||
3,308 | Mellanox Technologies Ltd. (Israel)* | 82,038 | |||||||||
5,085 | Mercury Computer Systems, Inc.* | 65,393 | |||||||||
5,524 | Methode Electronics, Inc., Class A | 61,316 | |||||||||
8,134 | Micrel, Inc. | 94,924 | |||||||||
2,943 | Monolithic Power Systems, Inc.* | 72,545 | |||||||||
2,557 | Multi-Fineline Electronix, Inc.* | 66,277 | |||||||||
6,982 | Nanometrics, Inc.* | 74,707 | |||||||||
4,093 | Oplink Communications, Inc.* | 61,845 | |||||||||
5,172 | OPNET Technologies, Inc. | 83,062 | |||||||||
1,823 | Pegasystems, Inc. | 57,734 | |||||||||
6,899 | Pericom Semiconductor Corp.* | 80,580 | |||||||||
10,564 | PRGX Global, Inc.* | 71,413 | |||||||||
8,090 | RadiSys Corp.* | 79,201 | |||||||||
3,967 | RADWARE Ltd. (Israel)* | 78,507 | |||||||||
2,776 | Rofin-Sinar Technologies, Inc.* | 73,731 | |||||||||
8,161 | Sapient Corp. | 83,487 | |||||||||
7,838 | Smith Micro Software, Inc.* | 74,383 | |||||||||
7,971 | SonicWALL, Inc.* | 80,746 | |||||||||
2,914 | Sourcefire, Inc.* | 65,186 | |||||||||
3,046 | Standard Microsystems Corp.* | 78,221 | |||||||||
2,639 | Stratasys, Inc.* | 62,914 | |||||||||
11,908 | Symmetricom, Inc.* | 78,950 | |||||||||
4,057 | Tekelec* | 73,553 | |||||||||
2,656 | TNS, Inc.* | 68,923 | |||||||||
5,657 | Travelzoo, Inc.* | 112,801 | |||||||||
10,118 | TriQuint Semiconductor, Inc.* | 76,290 | |||||||||
3,245 | Tyler Technologies, Inc.* | 55,295 | |||||||||
4,454 | Ultratech, Inc.* | 65,429 | |||||||||
2,101 | Unisys Corp.* | 58,870 | |||||||||
1,912 | Veeco Instruments, Inc.* | 84,109 | |||||||||
6,808 | Virtusa Corp.* | 70,054 | |||||||||
4,152,337 | |||||||||||
Materials—7.3% | |||||||||||
2,172 | Arch Chemicals, Inc. | 73,870 | |||||||||
4,242 | China Green Agriculture, Inc.* | 53,789 | |||||||||
1,253 | Clearwater Paper Corp.* | 79,791 | |||||||||
7,538 | Ferro Corp.* | 82,315 | |||||||||
3,111 | Innophos Holdings, Inc. | 88,632 | |||||||||
6,232 | Innospec, Inc. | 82,948 | |||||||||
1,732 | Kaiser Aluminum Corp. | 69,609 | |||||||||
2,187 | Koppers Holdings, Inc. | 61,608 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
4,614 | LSB Industries, Inc.* | $ | 81,945 | ||||||||
4,364 | Neenah Paper, Inc. | 76,370 | |||||||||
10,734 | Omnova Solutions, Inc.* | 82,115 | |||||||||
3,481 | Quaker Chemical Corp. | 109,547 | |||||||||
806 | Schweitzer-Mauduit International, Inc. | 45,877 | |||||||||
11,506 | Silvercorp Metals, Inc. (Canada) | 94,694 | |||||||||
6,042 | Stillwater Mining Co.* | 102,110 | |||||||||
6,886 | Wausau Paper Corp.* | 60,941 | |||||||||
2,958 | Westlake Chemical Corp. | 83,061 | |||||||||
1,329,222 | |||||||||||
Telecommunication Services—0.7% | |||||||||||
10,248 | General Communication, Inc., Class A* | 63,025 | |||||||||
4,113 | Otelco, Inc. | 65,068 | |||||||||
128,093 | |||||||||||
Utilities—2.9% | |||||||||||
1,844 | American States Water Co. | 68,818 | |||||||||
2,048 | Chesapeake Utilities Corp. | 61,686 | |||||||||
3,160 | El Paso Electric Co.* | 67,150 | |||||||||
1,880 | Laclede Group, Inc. (The) | 64,070 | |||||||||
5,225 | PNM Resources, Inc. | 71,008 | |||||||||
3,116 | Portland General Electric Co. | 61,946 | |||||||||
2,195 | Southwest Gas Corp. | 68,265 | |||||||||
2,238 | UIL Holdings Corp. | 64,969 | |||||||||
527,912 | |||||||||||
Total Common Stocks and Other Equity Interests (Cost $14,484,736) | 18,320,420 | ||||||||||
Money Market Fund—0.3% | |||||||||||
53,156 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $53,156) | 53,156 | |||||||||
Total Investments (Cost $14,537,892)—100.3% | 18,373,576 | ||||||||||
Liabilities in excess of other assets—(0.3%) | (51,324 | ) | |||||||||
Net Assets—100.0% | $ | 18,322,252 |
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
66
This page intentionally left blank
Statements of Assets and Liabilities
April 30, 2010
PowerShares Dynamic Large Cap Growth Portfolio | PowerShares Dynamic Large Cap Portfolio | PowerShares Dynamic Large Cap Value Portfolio | PowerShares Dynamic Mid Cap Growth Portfolio | PowerShares Dynamic Mid Cap Portfolio | PowerShares Dynamic Mid Cap Value Portfolio | ||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Investments, at value | $ | 230,439,037 | $ | 38,390,478 | $ | 349,338,681 | $ | 128,174,502 | $ | 25,393,810 | $ | 43,864,123 | |||||||||||||||
Receivables: | |||||||||||||||||||||||||||
Dividends | 125,460 | 43,725 | 656,058 | 8,699 | 5,622 | 17,106 | |||||||||||||||||||||
Investments sold | — | — | — | — | — | — | |||||||||||||||||||||
Expense waivers | — | 6,938 | — | 306 | 8,426 | 6,898 | |||||||||||||||||||||
Other assets | 3,002 | 3,001 | 3,000 | 3,001 | 3,000 | 3,000 | |||||||||||||||||||||
Total Assets | 230,567,499 | 38,444,142 | 349,997,739 | 128,186,508 | 25,410,858 | 43,891,127 | |||||||||||||||||||||
LIABILITES: | |||||||||||||||||||||||||||
Due to custodian | 6,800 | 4,694 | 480,635 | 6,305 | 6,064 | 6,063 | |||||||||||||||||||||
Payables: | |||||||||||||||||||||||||||
Shares repurchased | — | — | — | — | — | — | |||||||||||||||||||||
Expense recapture | — | — | 1,123 | — | — | — | |||||||||||||||||||||
Accrued advisory fees | 96,623 | 16,255 | 144,413 | 53,525 | 10,618 | 18,661 | |||||||||||||||||||||
Accrued expenses | 129,767 | 46,871 | 106,170 | 82,364 | 41,351 | 47,913 | |||||||||||||||||||||
Total Liabilities | 233,190 | 67,820 | 732,341 | 142,194 | 58,033 | 72,637 | |||||||||||||||||||||
NET ASSETS | $ | 230,334,309 | $ | 38,376,322 | $ | 349,265,398 | $ | 128,044,314 | $ | 25,352,825 | $ | 43,818,490 | |||||||||||||||
NET ASSETS CONSIST OF: | |||||||||||||||||||||||||||
Shares of beneficial interest | $ | 422,797,458 | $ | 41,463,523 | $ | 406,086,577 | $ | 260,987,065 | $ | 28,990,931 | $ | 79,204,220 | |||||||||||||||
Undistributed net investment income (loss) | 213,527 | 134,136 | 1,901,210 | (7,909 | ) | 31,725 | 44,286 | ||||||||||||||||||||
Accumulated net realized loss on investments and foreign currency related transactions | (228,446,457 | ) | (8,490,091 | ) | (92,357,663 | ) | (155,387,701 | ) | (8,127,091 | ) | (40,621,034 | ) | |||||||||||||||
Net unrealized appreciation on investments | 35,769,781 | 5,268,754 | 33,635,274 | 22,452,859 | 4,457,260 | 5,191,018 | |||||||||||||||||||||
Net Assets | $ | 230,334,309 | $ | 38,376,322 | $ | 349,265,398 | $ | 128,044,314 | $ | 25,352,825 | $ | 43,818,490 | |||||||||||||||
Shares outstanding (unlimited amount authorized, $0.01 par value) | 15,450,000 | 1,650,000 | 19,350,000 | 6,700,000 | 1,100,000 | 2,850,000 | |||||||||||||||||||||
Net asset value | $ | 14.91 | $ | 23.26 | $ | 18.05 | $ | 19.11 | $ | 23.05 | $ | 15.37 | |||||||||||||||
Share price | $ | 15.05 | $ | 23.26 | $ | 18.18 | $ | 19.32 | $ | 23.04 | $ | 15.36 | |||||||||||||||
Investments, at cost | $ | 194,669,256 | $ | 33,121,724 | $ | 315,703,407 | $ | 105,721,643 | $ | 20,936,550 | $ | 38,673,105 |
See Notes to Financial Statements.
68
PowerShares Dynamic Small Cap Growth Portfolio | PowerShares Dynamic Small Cap Portfolio | PowerShares Dynamic Small Cap Value Portfolio | PowerShares FTSE NASDAQ Small Cap Portfolio | PowerShares Zacks Micro Cap Portfolio | PowerShares Zacks Small Cap Portfolio | ||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Investments, at value | $ | 32,523,532 | $ | 18,999,010 | $ | 72,511,387 | $ | 1,263,986 | $ | 53,835,276 | $ | 18,373,576 | |||||||||||||||
Receivables: | |||||||||||||||||||||||||||
Dividends | 860 | 4,068 | 24,533 | 884 | 6,745 | 2,633 | |||||||||||||||||||||
Investments sold | 3,040 | — | — | 1,291,098 | 4,960 | — | |||||||||||||||||||||
Expense waivers | 8,055 | 8,167 | 6,127 | — | 6,528 | 6,660 | |||||||||||||||||||||
Other assets | 3,002 | 3,001 | 3,000 | — | 3,000 | 3,000 | |||||||||||||||||||||
Total Assets | 32,538,489 | 19,014,246 | 72,545,047 | 2,555,968 | 53,856,509 | 18,385,869 | |||||||||||||||||||||
LIABILITES: | |||||||||||||||||||||||||||
Due to custodian | 6,064 | 6,064 | 6,071 | 4,139 | 6,064 | 6,064 | |||||||||||||||||||||
Payables: | |||||||||||||||||||||||||||
Shares repurchased | — | — | — | 1,282,382 | — | — | |||||||||||||||||||||
Expense recapture | — | — | — | — | — | — | |||||||||||||||||||||
Accrued advisory fees | 13,570 | 8,174 | 30,411 | 1,433 | 21,590 | 8,279 | |||||||||||||||||||||
Accrued expenses | 46,353 | 39,933 | 55,461 | — | 70,547 | 49,274 | |||||||||||||||||||||
Total Liabilities | 65,987 | 54,171 | 91,943 | 1,287,954 | 98,201 | 63,617 | |||||||||||||||||||||
NET ASSETS | $ | 32,472,502 | $ | 18,960,075 | $ | 72,453,104 | $ | 1,268,014 | $ | 53,758,308 | $ | 18,322,252 | |||||||||||||||
NET ASSETS CONSIST OF: | |||||||||||||||||||||||||||
Shares of beneficial interest | $ | 70,655,869 | $ | 22,580,348 | $ | 102,181,898 | $ | 1,613,290 | $ | 120,195,963 | $ | 46,270,595 | |||||||||||||||
Undistributed net investment income (loss) | (3,517 | ) | (2,868 | ) | 68,424 | (453 | ) | 114,810 | (28,645 | ) | |||||||||||||||||
Accumulated net realized loss on investments and foreign currency related transactions | (42,242,759 | ) | (6,388,834 | ) | (39,470,993 | ) | (419,996 | ) | (74,592,133 | ) | (31,755,382 | ) | |||||||||||||||
Net unrealized appreciation on investments | 4,062,909 | 2,771,429 | 9,673,775 | 75,173 | 8,039,668 | 3,835,684 | |||||||||||||||||||||
Net Assets | $ | 32,472,502 | $ | 18,960,075 | $ | 72,453,104 | $ | 1,268,014 | $ | 53,758,308 | $ | 18,322,252 | |||||||||||||||
Shares outstanding (unlimited amount authorized, $0.01 par value) | 2,300,000 | 900,000 | 4,950,000 | 50,000 | 4,600,000 | 900,000 | |||||||||||||||||||||
Net asset value | $ | 14.12 | $ | 21.07 | $ | 14.64 | $ | 25.36 | $ | 11.69 | $ | 20.36 | |||||||||||||||
Share price | $ | 14.10 | $ | 21.05 | $ | 14.62 | $ | 25.34 | $ | 11.68 | $ | 20.32 | |||||||||||||||
Investments, at cost | $ | 28,460,623 | $ | 16,227,581 | $ | 62,837,612 | $ | 1,188,813 | $ | 45,795,608 | $ | 14,537,892 |
69
Statements of Operations
Year Ended April 30, 2010
PowerShares Dynamic Large Cap Growth Portfolio | PowerShares Dynamic Large Cap Portfolio | PowerShares Dynamic Large Cap Value Portfolio | PowerShares Dynamic Mid Cap Growth Portfolio | PowerShares Dynamic Mid Cap Portfolio | PowerShares Dynamic Mid Cap Value Portfolio | ||||||||||||||||||||||
INVESTMENT INCOME: | |||||||||||||||||||||||||||
Dividend income | $ | 2,839,115 | $ | 756,879 | $ | 9,726,570 | $ | 864,447 | $ | 345,497 | $ | 1,015,871 | |||||||||||||||
Foreign withholding tax | — | — | — | — | (10 | ) | (78 | ) | |||||||||||||||||||
Total Income | 2,839,115 | 756,879 | 9,726,570 | 864,447 | 345,487 | 1,015,793 | |||||||||||||||||||||
EXPENSES: | |||||||||||||||||||||||||||
Advisory fees | 1,337,294 | 191,981 | 1,577,934 | 658,924 | 109,792 | 212,719 | |||||||||||||||||||||
Sub-licensing | 80,237 | 19,198 | 94,676 | 39,535 | 10,979 | 12,763 | |||||||||||||||||||||
Accounting & Administration fees | 68,080 | 64,668 | 77,291 | 71,034 | 64,668 | 64,668 | |||||||||||||||||||||
Printing | 56,062 | 3,308 | 25,889 | 27,670 | 2,217 | 8,311 | |||||||||||||||||||||
Professional fees | 41,353 | 31,331 | 41,608 | 35,806 | 30,613 | 31,600 | |||||||||||||||||||||
Custodian & transfer agent fees | 21,273 | 16,276 | 26,027 | 12,309 | 16,022 | 12,790 | |||||||||||||||||||||
Trustees | 13,284 | 5,365 | 14,592 | 8,678 | 4,784 | 5,497 | |||||||||||||||||||||
Listing fee and expenses | 2,801 | 190 | 2,801 | 2,801 | 190 | 2,801 | |||||||||||||||||||||
Other expenses | 13,076 | 4,595 | 21,162 | 9,433 | 4,212 | 5,828 | |||||||||||||||||||||
Total Expenses | 1,633,460 | 336,912 | 1,881,980 | 866,190 | 243,477 | 356,977 | |||||||||||||||||||||
(Waivers) and/or Recapture | — | (87,338 | ) | 92,287 | (35,946 | ) | (100,746 | ) | (88,952 | ) | |||||||||||||||||
Net Expenses | 1,633,460 | 249,574 | 1,974,267 | 830,244 | 142,731 | 268,025 | |||||||||||||||||||||
Net Investment Income (Loss) | 1,205,655 | 507,305 | 7,752,303 | 34,203 | 202,756 | 747,768 | |||||||||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | |||||||||||||||||||||||||||
Net realized gain (loss) from: | |||||||||||||||||||||||||||
Investments | (21,020,881 | ) | (2,036,315 | ) | (15,724,637 | ) | (14,489,807 | ) | (345,193 | ) | (3,353,963 | ) | |||||||||||||||
In-kind redemptions | 56,514,529 | 5,287,497 | 58,503,585 | 35,256,779 | 5,274,094 | 12,214,717 | |||||||||||||||||||||
Foreign currency related transactions | — | — | — | — | — | — | |||||||||||||||||||||
Net realized gain (loss) | 35,493,648 | 3,251,182 | 42,778,948 | 20,766,972 | 4,928,901 | 8,860,754 | |||||||||||||||||||||
Net change in unrealized appreciation on: | |||||||||||||||||||||||||||
Investments | 47,840,479 | 7,535,604 | 45,537,586 | 21,155,475 | 2,726,518 | 4,919,548 | |||||||||||||||||||||
Net realized and unrealized gain on investments | 83,334,127 | 10,786,786 | 88,316,534 | 41,922,447 | 7,655,419 | 13,780,302 | |||||||||||||||||||||
Net increase in net assets resulting from operations | $ | 84,539,782 | $ | 11,294,091 | $ | 96,068,837 | $ | 41,956,650 | $ | 7,858,175 | $ | 14,528,070 |
See Notes to Financial Statements.
70
PowerShares Dynamic Small Cap Growth Portfolio | PowerShares Dynamic Small Cap Portfolio | PowerShares Dynamic Small Cap Value Portfolio | PowerShares FTSE NASDAQ Small Cap Portfolio | PowerShares Zacks Micro Cap Portfolio | PowerShares Zacks Small Cap Portfolio | ||||||||||||||||||||||
INVESTMENT INCOME: | |||||||||||||||||||||||||||
Dividend income | $ | 334,437 | $ | 213,752 | $ | 925,298 | $ | 14,495 | $ | 524,842 | $ | 215,236 | |||||||||||||||
Foreign withholding tax | — | — | — | (180 | ) | (77 | ) | (191 | ) | ||||||||||||||||||
Total Income | 334,437 | 213,752 | 925,298 | 14,315 | 524,765 | 215,045 | |||||||||||||||||||||
EXPENSES: | |||||||||||||||||||||||||||
Advisory fees | 160,859 | 86,009 | 340,392 | 14,740 | 242,462 | 107,201 | |||||||||||||||||||||
Sub-licensing | 9,652 | 8,601 | 20,423 | — | 48,493 | 21,440 | |||||||||||||||||||||
Accounting & Administration fees | 64,668 | 64,668 | 64,668 | — | 64,668 | 64,668 | |||||||||||||||||||||
Printing | 7,299 | 2,073 | 14,810 | — | 15,590 | 4,164 | |||||||||||||||||||||
Professional fees | 31,207 | 30,353 | 32,688 | — | 31,906 | 30,748 | |||||||||||||||||||||
Custodian & transfer agent fees | 15,419 | 15,772 | 14,417 | — | 20,474 | 16,572 | |||||||||||||||||||||
Trustees | 5,183 | 4,612 | 6,339 | — | 5,742 | 4,784 | |||||||||||||||||||||
Listing fee and expenses | 2,801 | 190 | 2,801 | — | 2,801 | 2,801 | |||||||||||||||||||||
Other expenses | 5,661 | 3,696 | 6,565 | — | 17,009 | 7,914 | |||||||||||||||||||||
Total Expenses | 302,749 | 215,974 | 503,103 | 14,740 | 449,145 | 260,292 | |||||||||||||||||||||
(Waivers) and/or Recapture | (100,066 | ) | (104,162 | ) | (74,209 | ) | — | (109,697 | ) | (110,211 | ) | ||||||||||||||||
Net Expenses | 202,683 | 111,812 | 428,894 | 14,740 | 339,448 | 150,081 | |||||||||||||||||||||
Net Investment Income (Loss) | 131,754 | 101,940 | 496,404 | (425 | ) | 185,317 | 64,964 | ||||||||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | |||||||||||||||||||||||||||
Net realized gain (loss) from: | |||||||||||||||||||||||||||
Investments | (2,435,029 | ) | (1,020,282 | ) | 1,738,084 | (109,181 | ) | (4,194,979 | ) | (5,536,119 | ) | ||||||||||||||||
In-kind redemptions | 10,245,107 | 5,547,196 | 19,833,941 | 307,092 | 7,367,854 | 4,221,622 | |||||||||||||||||||||
Foreign currency related transactions | — | — | — | 85 | — | — | |||||||||||||||||||||
Net realized gain (loss) | 7,810,078 | 4,526,914 | 21,572,025 | 197,996 | 3,172,875 | (1,314,497 | ) | ||||||||||||||||||||
Net change in unrealized appreciation on: | |||||||||||||||||||||||||||
Investments | 1,643,478 | 1,470,837 | 1,754,558 | 666,158 | 14,647,681 | 8,443,309 | |||||||||||||||||||||
Net realized and unrealized gain on investments | 9,453,556 | 5,997,751 | 23,326,583 | 864,154 | 17,820,556 | 7,128,812 | |||||||||||||||||||||
Net increase in net assets resulting from operations | $ | 9,585,310 | $ | 6,099,691 | $ | 23,822,987 | $ | 863,729 | $ | 18,005,873 | $ | 7,193,776 |
71
Statements of Changes in Net Assets
PowerShares Dynamic Large Cap Growth Portfolio | PowerShares Dynamic Large Cap Portfolio | PowerShares Dynamic Large Cap Value Portfolio | |||||||||||||||||||||||||
Year Ended April 30, 2010 | Year Ended April 30, 2009 | Year Ended April 30, 2010 | Year Ended April 30, 2009 | Year Ended April 30, 2010 | Year Ended April 30, 2009 | ||||||||||||||||||||||
OPERATIONS: | |||||||||||||||||||||||||||
Net investment income (loss) | $ | 1,205,655 | $ | 2,616,591 | $ | 507,305 | $ | 526,095 | $ | 7,752,303 | $ | 6,449,448 | |||||||||||||||
Net realized gain (loss) on investments and foreign currency related transactions | 35,493,648 | (209,521,493 | ) | 3,251,182 | (10,453,800 | ) | 42,778,948 | (86,285,630 | ) | ||||||||||||||||||
Net change in unrealized appreciation (depreciation) on investments | 47,840,479 | (5,830,350 | ) | 7,535,604 | (2,016,677 | ) | 45,537,586 | (3,795,554 | ) | ||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 84,539,782 | (212,735,252 | ) | 11,294,091 | (11,944,382 | ) | 96,068,837 | (83,631,736 | ) | ||||||||||||||||||
Undistributed net investment income (loss) included in the price of units issued and redeemed | (99,913 | ) | (483,455 | ) | (11,223 | ) | 60,111 | 103,798 | 385,582 | ||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||||||||||||
Net investment income | (2,004,571 | ) | (2,172,246 | ) | (600,837 | ) | (365,160 | ) | (7,967,039 | ) | (4,825,414 | ) | |||||||||||||||
Net realized gains | — | — | — | — | — | — | |||||||||||||||||||||
Return of capital | — | — | — | — | — | — | |||||||||||||||||||||
Total distributions to shareholders | (2,004,571 | ) | (2,172,246 | ) | (600,837 | ) | (365,160 | ) | (7,967,039 | ) | (4,825,414 | ) | |||||||||||||||
SHAREHOLDER TRANSACTIONS: | |||||||||||||||||||||||||||
Proceeds from shares sold | 210,435,034 | 373,056,998 | 25,831,453 | 44,327,546 | 345,199,877 | 275,942,116 | |||||||||||||||||||||
Value of shares repurchased | (343,808,377 | ) | (542,585,810 | ) | (31,503,303 | ) | (24,585,380 | ) | (346,735,324 | ) | (177,275,109 | ) | |||||||||||||||
Net income equalization | 99,913 | 483,455 | 11,223 | (60,111 | ) | (103,798 | ) | (385,582 | ) | ||||||||||||||||||
Net increase (decrease) in net assets resulting from shares transactions | (133,273,430 | ) | (169,045,357 | ) | (5,660,627 | ) | 19,682,055 | (1,639,245 | ) | 98,281,425 | |||||||||||||||||
Increase (Decrease) in Net Assets | (50,838,132 | ) | (384,436,310 | ) | 5,021,404 | 7,432,624 | 86,566,351 | 10,209,857 | |||||||||||||||||||
NET ASSETS: | |||||||||||||||||||||||||||
Beginning of year | 281,172,441 | 665,608,751 | 33,354,918 | 25,922,294 | 262,699,047 | 252,489,190 | |||||||||||||||||||||
End of year | $ | 230,334,309 | $ | 281,172,441 | $ | 38,376,322 | $ | 33,354,918 | $ | 349,265,398 | $ | 262,699,047 | |||||||||||||||
Undistributed net investment income (loss) at end of year | $ | 213,527 | $ | 1,012,443 | $ | 134,136 | $ | 227,668 | $ | 1,901,210 | $ | 2,103,695 | |||||||||||||||
CHANGES IN SHARES OUTSTANDING: | |||||||||||||||||||||||||||
Shares sold | 16,300,000 | 24,800,000 | 1,300,000 | 2,200,000 | 21,400,000 | 18,100,000 | |||||||||||||||||||||
Shares repurchased | (26,350,000 | ) | (37,700,000 | ) | (1,550,000 | ) | (1,300,000 | ) | (21,450,000 | ) | (11,800,000 | ) | |||||||||||||||
Shares outstanding, beginning of year | 25,500,000 | 38,400,000 | 1,900,000 | 1,000,000 | 19,400,000 | 13,100,000 | |||||||||||||||||||||
Shares outstanding, end of year | 15,450,000 | 25,500,000 | 1,650,000 | 1,900,000 | 19,350,000 | 19,400,000 |
See Notes to Financial Statements.
72
PowerShares Dynamic Mid Cap Growth Portfolio | PowerShares Dynamic Mid Cap Portfolio | PowerShares Dynamic Mid Cap Value Portfolio | |||||||||||||||||||||||||
Year Ended April 30, 2010 | Year Ended April 30, 2009 | Year Ended April 30, 2010 | Year Ended April 30, 2009 | Year Ended April 30, 2010 | Year Ended April 30, 2009 | ||||||||||||||||||||||
OPERATIONS: | |||||||||||||||||||||||||||
Net investment income (loss) | $ | 34,203 | $ | (179,614 | ) | $ | 202,756 | $ | 127,257 | $ | 747,768 | $ | 1,065,635 | ||||||||||||||
Net realized gain (loss) on investments and foreign currency related transactions | 20,766,972 | (141,645,958 | ) | 4,928,901 | (9,039,856 | ) | 8,860,754 | (32,014,006 | ) | ||||||||||||||||||
Net change in unrealized appreciation (depreciation) on investments | 21,155,475 | (5,415,786 | ) | 2,726,518 | 1,438,191 | 4,919,548 | 5,502,827 | ||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 41,956,650 | (147,241,358 | ) | 7,858,175 | (7,474,408 | ) | 14,528,070 | (25,445,544 | ) | ||||||||||||||||||
Undistributed net investment income (loss) included in the price of units issued and redeemed | (25,821 | ) | 126,522 | (1,870 | ) | 5,421 | (12,087 | ) | (58,260 | ) | |||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||||||||||||
Net investment income | (33,475 | ) | — | (182,736 | ) | (132,595 | ) | (858,787 | ) | (992,947 | ) | ||||||||||||||||
Net realized gains | — | — | — | — | — | — | |||||||||||||||||||||
Return of capital | (67,025 | ) | — | — | — | — | — | ||||||||||||||||||||
Total distributions to shareholders | (100,500 | ) | — | (182,736 | ) | (132,595 | ) | (858,787 | ) | (992,947 | ) | ||||||||||||||||
SHAREHOLDER TRANSACTIONS: | |||||||||||||||||||||||||||
Proceeds from shares sold | 145,511,108 | 376,214,214 | 20,468,037 | 25,177,425 | 52,444,863 | 67,494,471 | |||||||||||||||||||||
Value of shares repurchased | (199,360,714 | ) | (479,081,004 | ) | (20,719,244 | ) | (25,110,529 | ) | (61,351,368 | ) | (81,380,622 | ) | |||||||||||||||
Net income equalization | 25,821 | (126,522 | ) | 1,870 | (5,421 | ) | 12,087 | 58,260 | |||||||||||||||||||
Net increase (decrease) in net assets resulting from shares transactions | (53,823,785 | ) | (102,993,312 | ) | (249,337 | ) | 61,475 | (8,894,418 | ) | (13,827,891 | ) | ||||||||||||||||
Increase (Decrease) in Net Assets | (11,993,456 | ) | (250,108,148 | ) | 7,424,232 | (7,540,107 | ) | 4,762,778 | (40,324,642 | ) | |||||||||||||||||
NET ASSETS: | |||||||||||||||||||||||||||
Beginning of year | 140,037,770 | 390,145,918 | 17,928,593 | 25,468,700 | 39,055,712 | 79,380,354 | |||||||||||||||||||||
End of year | $ | 128,044,314 | $ | 140,037,770 | $ | 25,352,825 | $ | 17,928,593 | $ | 43,818,490 | $ | 39,055,712 | |||||||||||||||
Undistributed net investment income (loss) at end of year | $ | (7,909 | ) | $ | (8,637 | ) | $ | 31,725 | $ | 11,690 | $ | 44,286 | $ | 155,305 | |||||||||||||
CHANGES IN SHARES OUTSTANDING: | |||||||||||||||||||||||||||
Shares sold | 9,250,000 | 19,500,000 | 1,050,000 | 1,300,000 | 4,000,000 | 4,700,000 | |||||||||||||||||||||
Shares repurchased | (12,650,000 | ) | (26,900,000 | ) | (1,050,000 | ) | (1,200,000 | ) | (4,650,000 | ) | (5,900,000 | ) | |||||||||||||||
Shares outstanding, beginning of year | 10,100,000 | 17,500,000 | 1,100,000 | 1,000,000 | 3,500,000 | 4,700,000 | |||||||||||||||||||||
Shares outstanding, end of year | 6,700,000 | 10,100,000 | 1,100,000 | 1,100,000 | 2,850,000 | 3,500,000 |
73
Statements of Changes in Net Assets (Continued)
PowerShares Dynamic Small Cap Growth Portfolio | PowerShares Dynamic Small Cap Portfolio | PowerShares Dynamic Small Cap Value Portfolio | |||||||||||||||||||||||||
Year Ended April 30, 2010 | Year Ended April 30, 2009 | Year Ended April 30, 2010 | Year Ended April 30, 2009 | Year Ended April 30, 2010 | Year Ended April 30, 2009 | ||||||||||||||||||||||
OPERATIONS: | |||||||||||||||||||||||||||
Net investment income (loss) | $ | 131,754 | $ | 44,573 | $ | 101,940 | $ | 70,485 | $ | 496,404 | $ | 759,918 | |||||||||||||||
Net realized gain (loss) on investments and foreign currency related transactions | 7,810,078 | (20,517,559 | ) | 4,526,914 | (7,314,141 | ) | 21,572,025 | (42,648,592 | ) | ||||||||||||||||||
Net change in unrealized appreciation (depreciation) on investments | 1,643,478 | 1,656,821 | 1,470,837 | 996,503 | 1,754,558 | 7,267,334 | |||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 9,585,310 | (18,816,165 | ) | 6,099,691 | (6,247,153 | ) | 23,822,987 | (34,621,340 | ) | ||||||||||||||||||
Undistributed net investment income (loss) included in the price of units issued and redeemed | 28,509 | (11,854 | ) | 1,575 | 9,361 | 5,750 | 16,498 | ||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||||||||||||
Net investment income | (193,877 | ) | — | (130,765 | ) | (45,596 | ) | (464,268 | ) | (695,379 | ) | ||||||||||||||||
Net realized gains | — | — | — | — | — | — | |||||||||||||||||||||
Return of capital | (41,471 | ) | — | (12,826 | ) | — | — | — | |||||||||||||||||||
Total distributions to shareholders | (235,348 | ) | — | (143,591 | ) | (45,596 | ) | (464,268 | ) | (695,379 | ) | ||||||||||||||||
SHAREHOLDER TRANSACTIONS: | |||||||||||||||||||||||||||
Proceeds from shares sold | 42,804,831 | 56,905,093 | 23,140,278 | 28,838,189 | 100,268,941 | 116,494,999 | |||||||||||||||||||||
Value of shares repurchased | (51,166,233 | ) | (58,451,236 | ) | (23,666,253 | ) | (25,329,007 | ) | (113,427,132 | ) | (110,592,430 | ) | |||||||||||||||
Net income equalization | (28,509 | ) | 11,854 | (1,575 | ) | (9,361 | ) | (5,750 | ) | (16,498 | ) | ||||||||||||||||
Net increase (decrease) in net assets resulting from shares transactions | (8,389,911 | ) | (1,534,289 | ) | (527,550 | ) | 3,499,821 | (13,163,941 | ) | 5,886,071 | |||||||||||||||||
Increase (Decrease) in Net Assets | 988,560 | (20,362,308 | ) | 5,430,125 | (2,783,567 | ) | 10,200,528 | (29,414,150 | ) | ||||||||||||||||||
NET ASSETS: | |||||||||||||||||||||||||||
Beginning of year | 31,483,942 | 51,846,250 | 13,529,950 | 16,313,517 | 62,252,576 | 91,666,726 | |||||||||||||||||||||
End of year | $ | 32,472,502 | $ | 31,483,942 | $ | 18,960,075 | $ | 13,529,950 | $ | 72,453,104 | $ | 62,252,576 | |||||||||||||||
Undistributed net investment income (loss) at end of year | $ | (3,517 | ) | $ | 44,573 | $ | (2,868 | ) | $ | 24,889 | $ | 68,424 | $ | 64,539 | |||||||||||||
CHANGES IN SHARES OUTSTANDING: | |||||||||||||||||||||||||||
Shares sold | 3,600,000 | 4,200,000 | 1,350,000 | 1,600,000 | 8,400,000 | 9,200,000 | |||||||||||||||||||||
Shares repurchased | (4,300,000 | ) | (4,500,000 | ) | (1,350,000 | ) | (1,400,000 | ) | (9,450,000 | ) | (9,000,000 | ) | |||||||||||||||
Shares outstanding, beginning of year | 3,000,000 | 3,300,000 | 900,000 | 700,000 | 6,000,000 | 5,800,000 | |||||||||||||||||||||
Shares outstanding, end of year | 2,300,000 | 3,000,000 | 900,000 | 900,000 | 4,950,000 | 6,000,000 |
See Notes to Financial Statements.
74
PowerShares FTSE NASDAQ Small Cap Portfolio | PowerShares Zacks Micro Cap Portfolio | PowerShares Zacks Small Cap Portfolio | |||||||||||||||||||||||||
Year Ended April 30, 2010 | Year Ended April 30, 2009 | Year Ended April 30, 2010 | Year Ended April 30, 2009 | Year Ended April 30, 2010 | Year Ended April 30, 2009 | ||||||||||||||||||||||
OPERATIONS: | |||||||||||||||||||||||||||
Net investment income (loss) | $ | (425 | ) | $ | 5,718 | $ | 185,317 | $ | 730,416 | $ | 64,964 | $ | 162,057 | ||||||||||||||
Net realized gain (loss) on investments and foreign currency related transactions | 197,996 | (474,057 | ) | 3,172,875 | (34,834,317 | ) | (1,314,497 | ) | (16,420,390 | ) | |||||||||||||||||
Net change in unrealized appreciation (depreciation) on investments | 666,158 | (581,586 | ) | 14,647,681 | 928,684 | 8,443,309 | 984,972 | ||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 863,729 | (1,049,925 | ) | 18,005,873 | (33,175,217 | ) | 7,193,776 | (15,273,361 | ) | ||||||||||||||||||
Undistributed net investment income (loss) included in the price of units issued and redeemed | 374 | (243 | ) | 39,210 | 24,697 | 27,197 | 26,245 | ||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||||||||||||
Net investment income | (1,663 | ) | (15,180 | ) | (402,300 | ) | (1,156,194 | ) | (81,588 | ) | (210,193 | ) | |||||||||||||||
Net realized gains | — | (9 | ) | — | — | — | — | ||||||||||||||||||||
Return of capital | — | — | — | — | — | (20,801 | ) | ||||||||||||||||||||
Total distributions to shareholders | (1,663 | ) | (15,189 | ) | (402,300 | ) | (1,156,194 | ) | (81,588 | ) | (230,994 | ) | |||||||||||||||
SHAREHOLDER TRANSACTIONS: | |||||||||||||||||||||||||||
Proceeds from shares sold | 1,077,287 | 3,240,574 | 42,740,058 | 62,276,992 | 10,084,697 | 26,838,752 | |||||||||||||||||||||
Value of shares repurchased | (2,359,669 | ) | (3,050,022 | ) | (53,545,721 | ) | (75,052,710 | ) | (17,663,023 | ) | (32,175,789 | ) | |||||||||||||||
Net income equalization | (374 | ) | 243 | (39,210 | ) | (24,697 | ) | (27,197 | ) | (26,245 | ) | ||||||||||||||||
Net increase (decrease) in net assets resulting from shares transactions | (1,282,756 | ) | 190,795 | (10,844,873 | ) | (12,800,415 | ) | (7,605,523 | ) | (5,363,282 | ) | ||||||||||||||||
Increase (Decrease) in Net Assets | (420,316 | ) | (874,562 | ) | 6,797,910 | (47,107,129 | ) | (466,138 | ) | (20,841,392 | ) | ||||||||||||||||
NET ASSETS: | |||||||||||||||||||||||||||
Beginning of year | 1,688,330 | 2,562,892 | 46,960,398 | 94,067,527 | 18,788,390 | 39,629,782 | |||||||||||||||||||||
End of year | $ | 1,268,014 | $ | 1,688,330 | $ | 53,758,308 | $ | 46,960,398 | $ | 18,322,252 | $ | 18,788,390 | |||||||||||||||
Undistributed net investment income (loss) at end of year | $ | (453 | ) | $ | 1,474 | $ | 114,810 | $ | 117,342 | $ | (28,645 | ) | $ | (3,195 | ) | ||||||||||||
CHANGES IN SHARES OUTSTANDING: | |||||||||||||||||||||||||||
Shares sold | 50,000 | 200,000 | 4,550,000 | 6,200,000 | 600,000 | 1,400,000 | |||||||||||||||||||||
Shares repurchased | (100,000 | ) | (200,000 | ) | (5,750,000 | ) | (7,300,000 | ) | (1,000,000 | ) | (1,800,000 | ) | |||||||||||||||
Shares outstanding, beginning of year | 100,000 | 100,000 | 5,800,000 | 6,900,000 | 1,300,000 | 1,700,000 | |||||||||||||||||||||
Shares outstanding, end of year | 50,000 | 100,000 | 4,600,000 | 5,800,000 | 900,000 | 1,300,000 |
75
Financial Highlights
PowerShares Dynamic Large Cap Growth Portfolio
Year Ended April 30, | |||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 11.03 | $ | 17.33 | $ | 17.46 | $ | 16.35 | $ | 14.11 | |||||||||||||
Net investment income (loss)** | 0.06 | 0.08 | 0.07 | 0.02 | (0.01 | ) | |||||||||||||||||
Net realized and unrealized gain (loss) on investments | 3.91 | (6.30 | ) | (0.16 | ) | 1.11 | 2.25 | ||||||||||||||||
Total from investment operations | 3.97 | (6.22 | ) | (0.09 | ) | 1.13 | 2.24 | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.09 | ) | (0.08 | ) | (0.04 | ) | (0.02 | ) | 0.00 | (a) | |||||||||||||
Return of capital | — | — | — | 0.00 | (a) | — | |||||||||||||||||
Total distributions | (0.09 | ) | (0.08 | ) | (0.04 | ) | (0.02 | ) | — | ||||||||||||||
Net asset value at end of period | $ | 14.91 | $ | 11.03 | $ | 17.33 | $ | 17.46 | $ | 16.35 | |||||||||||||
Share price at end of period*** | $ | 15.05 | $ | 11.03 | |||||||||||||||||||
NET ASSET VALUE, TOTAL RETURN**** | 36.15 | % | (35.93 | )% | (0.56 | )% | 6.92 | % | 15.89 | % | |||||||||||||
SHARE PRICE TOTAL RETURN**** | 36.15 | % | (35.93 | )% | |||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 230,334 | $ | 281,172 | $ | 665,609 | $ | 277,598 | $ | 148,750 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.61 | % | 0.61 | % | 0.63 | % | 0.63 | % | 0.64 | % | |||||||||||||
Expenses, prior to (Waivers) and/or Recapture | 0.61 | % | 0.60 | % | 0.60 | % | 0.68 | % | 0.80 | % | |||||||||||||
Net investment income (loss), after (Waivers) and/or Recapture | 0.45 | % | 0.60 | % | 0.37 | % | 0.13 | % | (0.04 | )% | |||||||||||||
Portfolio turnover rate † | 67 | % | 88 | % | 46 | % | 57 | % | 73 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | (0.00 | )(a) | $ | (0.02 | ) | $ | 0.02 | $ | 0.00 | (a) | — |
PowerShares Dynamic Large Cap Portfolio
Year Ended April 30, | For the Period December 1, 2006* Through | ||||||||||||||||||
2010 | 2009 | 2008 | April 30, 2007 | ||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||
Net asset value at beginning of period | $ | 17.56 | $ | 25.92 | $ | 27.00 | $ | 25.18 | |||||||||||
Net investment income** | 0.27 | 0.34 | 0.27 | 0.12 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 5.74 | (8.44 | ) | (1.14 | ) | 1.78 | |||||||||||||
Total from investment operations | 6.01 | (8.10 | ) | (0.87 | ) | 1.90 | |||||||||||||
Distributions to shareholders from: | |||||||||||||||||||
Net investment income | (0.31 | ) | (0.26 | ) | (0.21 | ) | (0.08 | ) | |||||||||||
Net asset value at end of period | $ | 23.26 | $ | 17.56 | $ | 25.92 | $ | 27.00 | |||||||||||
Share price at end of period*** | $ | 23.26 | $ | 17.55 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN**** | 34.56 | % | (31.47 | )% | (3.26 | )% | 7.55 | % | |||||||||||
SHARE PRICE TOTAL RETURN**** | 34.64 | % | (31.48 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 38,376 | $ | 33,355 | $ | 25,922 | $ | 10,798 | |||||||||||
Ratio to average net assets of: | |||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.65 | % | 0.65 | % | 0.73 | % | 0.74 | %†† | |||||||||||
Expenses, prior to (Waivers) and/or Recapture | 0.88 | % | 0.93 | % | 1.38 | % | 1.45 | %†† | |||||||||||
Net investment income, after (Waivers) and/or Recapture | 1.32 | % | 1.71 | % | 1.03 | % | 1.05 | %†† | |||||||||||
Portfolio turnover rate † | 62 | % | 57 | % | 49 | % | 3 | % | |||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | (0.01 | ) | $ | 0.04 | $ | 0.06 | $ | (0.01 | ) |
* Commencement of Investment Operations.
** Based on average shares outstanding.
*** The mean between the last bid and ask prices.
**** Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all dividends and distributions at share price during the period, and sale at the share price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
† Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
†† Annualized.
# The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(a) Amount represents less than $0.005.
See Notes to Financial Statements.
76
Financial Highlights (Continued)
PowerShares Dynamic Large Cap Value Portfolio
Year Ended April 30, | |||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 13.54 | $ | 19.27 | $ | 20.72 | $ | 17.41 | $ | 14.52 | |||||||||||||
Net investment income* | 0.39 | 0.41 | 0.43 | 0.39 | 0.28 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 4.52 | (5.81 | ) | (1.40 | ) | 3.21 | 2.85 | ||||||||||||||||
Total from investment operations | 4.91 | (5.40 | ) | (0.97 | ) | 3.60 | 3.13 | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.40 | ) | (0.33 | ) | (0.48 | ) | (0.29 | ) | (0.24 | ) | |||||||||||||
Net asset value at end of period | $ | 18.05 | $ | 13.54 | $ | 19.27 | $ | 20.72 | $ | 17.41 | |||||||||||||
Share price at end of period** | $ | 18.18 | $ | 13.55 | |||||||||||||||||||
NET ASSET VALUE, TOTAL RETURN*** | 36.69 | % | (28.30 | )% | (4.78 | )% | 20.85 | % | 21.71 | % | |||||||||||||
SHARE PRICE TOTAL RETURN*** | 36.67 | % | (28.21 | )% | |||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 349,265 | $ | 262,699 | $ | 252,489 | $ | 292,130 | $ | 90,532 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | 0.65 | % | |||||||||||||
Expenses, prior to (Waivers) and/or Recapture | 0.60 | % | 0.61 | % | 0.59 | % | 0.67 | % | 0.94 | % | |||||||||||||
Net investment income, after (Waivers) and/or Recapture | 2.46 | % | 2.71 | % | 2.14 | % | 2.00 | % | 1.75 | % | |||||||||||||
Portfolio turnover rate † | 47 | % | 77 | % | 22 | % | 16 | % | 29 | % | |||||||||||||
Undistributed net investment income included in price of units issued and redeemed*# | $ | 0.01 | $ | 0.02 | $ | 0.00 | (a) | $ | 0.03 | — |
PowerShares Dynamic Mid Cap Growth Portfolio
Year Ended April 30, | |||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 13.87 | $ | 22.29 | $ | 21.09 | $ | 18.79 | $ | 13.92 | |||||||||||||
Net investment income (loss)* | 0.00 | (a) | (0.01 | ) | 0.00 | (a) | (0.03 | ) | 0.28 | ||||||||||||||
Net realized and unrealized gain (loss) on investments | 5.25 | (8.41 | ) | 1.20 | 2.44 | 4.59 | |||||||||||||||||
Total from investment operations | 5.25 | (8.42 | ) | 1.20 | 2.41 | 4.87 | |||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.00 | )(a) | — | — | (0.11 | ) | — | ||||||||||||||||
Return of capital | (0.01 | ) | — | 0.00 | (a) | 0.00 | (a) | — | |||||||||||||||
Total distributions | (0.01 | ) | — | — | (0.11 | ) | — | ||||||||||||||||
Net asset value at end of period | $ | 19.11 | $ | 13.87 | $ | 22.29 | $ | 21.09 | $ | 18.79 | |||||||||||||
Share price at end of period** | $ | 19.32 | $ | 13.85 | |||||||||||||||||||
NET ASSET VALUE, TOTAL RETURN*** | 37.89 | % | (37.78 | )% | 5.70 | % | 12.91 | % | 34.99 | % | |||||||||||||
SHARE PRICE TOTAL RETURN*** | 38.02 | % | (37.86 | )% | |||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 128,044 | $ | 140,038 | $ | 390,146 | $ | 189,794 | $ | 103,325 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | 0.65 | % | |||||||||||||
Expenses, prior to (Waivers) and/or Recapture | 0.66 | % | 0.61 | % | 0.60 | % | 0.73 | % | 0.90 | % | |||||||||||||
Net investment income (loss), after (Waivers) and/or Recapture | 0.03 | % | (0.07 | )% | (0.01 | )% | (0.15 | )% | 1.56 | % | |||||||||||||
Portfolio turnover rate † | 75 | % | 81 | % | 80 | % | 69 | % | 86 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed*# | $ | (0.00 | )(a) | $ | 0.01 | $ | (0.01 | ) | $ | 0.02 | — |
* Based on average shares outstanding.
** The mean between the last bid and ask prices.
*** Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all dividends and distributions at share price during the period, and sale at the share price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
† Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
# The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(a) Amount represents less than $0.005.
See Notes to Financial Statements.
77
Financial Highlights (Continued)
PowerShares Dynamic Mid Cap Portfolio
Year Ended April 30, | For the Period December 1, 2006* Through | ||||||||||||||||||
2010 | 2009 | 2008 | April 30, 2007 | ||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||
Net asset value at beginning of period | $ | 16.30 | $ | 25.47 | $ | 27.98 | $ | 25.26 | |||||||||||
Net investment income** | 0.18 | 0.13 | 0.11 | 0.10 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 6.73 | (9.17 | ) | (2.49 | ) | 2.68 | |||||||||||||
Total from investment operations | 6.91 | (9.04 | ) | (2.38 | ) | 2.78 | |||||||||||||
Distributions to shareholders from: | |||||||||||||||||||
Net investment income | (0.16 | ) | (0.13 | ) | (0.13 | ) | (0.06 | ) | |||||||||||
Net asset value at end of period | $ | 23.05 | $ | 16.30 | $ | 25.47 | $ | 27.98 | |||||||||||
Share price at end of period*** | $ | 23.04 | $ | 16.29 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN**** | 42.59 | % | (35.57 | )% | (8.54 | )% | 11.04 | % | |||||||||||
SHARE PRICE TOTAL RETURN**** | 42.62 | % | (35.63 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 25,353 | $ | 17,929 | $ | 25,469 | $ | 11,190 | |||||||||||
Ratio to average net assets of: | |||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.65 | % | 0.65 | % | 0.73 | % | 0.74 | %† | |||||||||||
Expenses, prior to (Waivers) and/or Recapture | 1.11 | % | 1.17 | % | 1.34 | % | 1.55 | %† | |||||||||||
Net investment income, after (Waivers) and/or Recapture | 0.92 | % | 0.67 | % | 0.42 | % | 0.91 | %† | |||||||||||
Portfolio turnover rate †† | 76 | % | 79 | % | 99 | % | 7 | % | |||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | (0.00 | )(a) | $ | 0.01 | $ | (0.01 | ) | $ | 0.00 | (a) |
PowerShares Dynamic Mid Cap Value Portfolio
Year Ended April 30, | |||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 11.16 | $ | 16.89 | $ | 20.25 | $ | 17.22 | $ | 14.47 | |||||||||||||
Net investment income** | 0.23 | 0.26 | 0.22 | 0.29 | 0.22 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 4.24 | (5.75 | ) | (3.32 | ) | 2.97 | 2.78 | ||||||||||||||||
Total from investment operations | 4.47 | (5.49 | ) | (3.10 | ) | 3.26 | 3.00 | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.26 | ) | (0.24 | ) | (0.26 | ) | (0.23 | ) | (0.25 | ) | |||||||||||||
Net asset value at end of period | $ | 15.37 | $ | 11.16 | $ | 16.89 | $ | 20.25 | $ | 17.22 | |||||||||||||
Share price at end of period*** | $ | 15.36 | $ | 11.13 | |||||||||||||||||||
NET ASSET VALUE, TOTAL RETURN**** | 40.58 | % | (32.71 | )% | (15.47 | )% | 19.14 | % | 20.85 | % | |||||||||||||
SHARE PRICE TOTAL RETURN**** | 40.88 | % | (32.89 | )% | |||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 43,818 | $ | 39,056 | $ | 79,380 | $ | 109,356 | $ | 56,815 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | 0.67 | % | |||||||||||||
Expenses, prior to (Waivers) and/or Recapture | 0.84 | % | 0.78 | % | 0.68 | % | 0.82 | % | 1.13 | % | |||||||||||||
Net investment income, after (Waivers) and/or Recapture | 1.76 | % | 1.95 | % | 1.14 | % | 1.64 | % | 1.33 | % | |||||||||||||
Portfolio turnover rate †† | 86 | % | 94 | % | 53 | % | 43 | % | 117 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | (0.00 | )(a) | $ | (0.01 | ) | $ | 0.00 | (a) | $ | 0.01 | — |
* Commencement of Investment Operations.
** Based on average shares outstanding.
*** The mean between the last bid and ask prices.
**** Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all dividends and distributions at share price during the period, and sale at the share price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
† Annualized.
†† Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
# The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(a) Amount represents less than $0.005.
See Notes to Financial Statements.
78
Financial Highlights (Continued)
PowerShares Dynamic Small Cap Growth Portfolio
Year Ended April 30, | |||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 10.49 | $ | 15.71 | $ | 18.59 | $ | 18.51 | $ | 13.90 | |||||||||||||
Net investment income (loss)** | 0.05 | 0.01 | (0.05 | ) | (0.05 | ) | 0.11 | ||||||||||||||||
Net realized and unrealized gain (loss) on investments | 3.67 | (5.23 | ) | (2.83 | ) | 0.13 | 4.50 | ||||||||||||||||
Total from investment operations | 3.72 | (5.22 | ) | (2.88 | ) | 0.08 | 4.61 | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.07 | ) | — | — | — | — | |||||||||||||||||
Return of Capital | (0.02 | ) | — | — | — | — | |||||||||||||||||
Total distributions | (0.09 | ) | — | — | — | — | |||||||||||||||||
Net asset value at end of period | $ | 14.12 | $ | 10.49 | $ | 15.71 | $ | 18.59 | $ | 18.51 | |||||||||||||
Share price at end of period*** | $ | 14.10 | $ | 10.48 | |||||||||||||||||||
NET ASSET VALUE, TOTAL RETURN**** | 35.60 | % | (33.23 | )% | (15.49 | )% | 0.43 | % | 33.17 | % | |||||||||||||
SHARE PRICE TOTAL RETURN**** | 35.54 | % | (33.25 | )% | |||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 32,473 | $ | 31,484 | $ | 51,846 | $ | 61,347 | $ | 118,465 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | 0.65 | % | |||||||||||||
Expenses, prior to (Waivers) and/or Recapture | 0.94 | % | 0.86 | % | 0.77 | % | 0.84 | % | 0.90 | % | |||||||||||||
Net investment income (loss), after (Waivers) and/or Recapture | 0.41 | % | 0.11 | % | (0.27 | )% | (0.32 | )% | 0.65 | % | |||||||||||||
Portfolio turnover rate † | 113 | % | 109 | % | 78 | % | 114 | % | 120 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | 0.01 | $ | 0.00 | (a) | $ | (0.00 | )(a) | $ | (0.02 | ) | — |
PowerShares Dynamic Small Cap Portfolio
Year Ended April 30, | For the Period December 1, 2006* Through | ||||||||||||||||||
2010 | 2009 | 2008 | April 30, 2007 | ||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||
Net asset value at beginning of period | $ | 15.03 | $ | 23.31 | $ | 26.68 | $ | 25.17 | |||||||||||
Net investment income** | 0.11 | 0.08 | 0.06 | 0.00 | (a) | ||||||||||||||
Net realized and unrealized gain (loss) on investments | 6.08 | (8.31 | ) | (3.13 | ) | 1.51 | |||||||||||||
Total from investment operations | 6.19 | (8.23 | ) | (3.07 | ) | 1.51 | |||||||||||||
Distributions to shareholders from: | |||||||||||||||||||
Net investment income | (0.14 | ) | (0.05 | ) | (0.08 | ) | 0.00 | (a) | |||||||||||
Return of capital | (0.01 | ) | — | (0.22 | ) | — | |||||||||||||
Total distributions | (0.15 | ) | (0.05 | ) | (0.30 | ) | — | ||||||||||||
Net asset value at end of period | $ | 21.07 | $ | 15.03 | $ | 23.31 | $ | 26.68 | |||||||||||
Share price at end of period*** | $ | 21.05 | $ | 15.00 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN**** | 41.37 | % | (35.34 | )% | (11.61 | )% | 6.01 | % | |||||||||||
SHARE PRICE TOTAL RETURN**** | 41.52 | % | (35.41 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 18,960 | $ | 13,530 | $ | 16,314 | $ | 8,005 | |||||||||||
Ratio to average net assets of: | |||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.65 | % | 0.65 | % | 0.79 | % | 0.74 | %†† | |||||||||||
Expenses, prior to (Waivers) and/or Recapture | 1.26 | % | 1.35 | % | 1.96 | % | 1.55 | %†† | |||||||||||
Net investment income, after (Waivers) and/or Recapture | 0.59 | % | 0.47 | % | 0.26 | % | 0.04 | %†† | |||||||||||
Portfolio turnover rate † | 93 | % | 81 | % | 103 | % | 52 | % | |||||||||||
Undistributed net investment income included in price of units issued and redeemed**# | $ | 0.00 | (a) | $ | 0.01 | $ | 0.05 | $ | 0.00 | (a) |
* Commencement of Investment Operations.
** Based on average shares outstanding.
*** The mean between the last bid and ask prices.
**** Net assets value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share price total return is calculated assuming an initial investment made at the share price at the beginning at the period, reinvestment of all dividends and distributions at share price during the period, and sale at the share price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
† Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
†† Annualized.
# The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(a) Amount represents less than $0.005.
See Notes to Financial Statements.
79
Financial Highlights (Continued)
PowerShares Dynamic Small Cap Value Portfolio
Year Ended April 30, | |||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 10.38 | $ | 15.80 | $ | 18.68 | $ | 17.01 | $ | 13.79 | |||||||||||||
Net investment income** | 0.09 | 0.12 | 0.16 | 0.13 | 0.11 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 4.25 | (5.43 | ) | (2.47 | ) | 1.67 | 3.22 | ||||||||||||||||
Total from investment operations | 4.34 | (5.31 | ) | (2.31 | ) | 1.80 | 3.33 | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.08 | ) | (0.11 | ) | (0.16 | ) | (0.13 | ) | (0.11 | ) | |||||||||||||
Return of capital | — | — | (0.41 | ) | — | — | |||||||||||||||||
Total distributions | (0.08 | ) | (0.11 | ) | (0.57 | ) | (0.13 | ) | (0.11 | ) | |||||||||||||
Net asset value at end of period | $ | 14.64 | $ | 10.38 | $ | 15.80 | $ | 18.68 | $ | 17.01 | |||||||||||||
Share price at end of period*** | $ | 14.62 | $ | 10.36 | |||||||||||||||||||
NET ASSET VALUE, TOTAL RETURN**** | 42.03 | % | (33.69 | )% | (12.51 | )% | 10.64 | % | 24.20 | % | |||||||||||||
SHARE PRICE TOTAL RETURN**** | 42.11 | % | (33.78 | )% | |||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 72,453 | $ | 62,253 | $ | 91,667 | $ | 117,680 | $ | 66,339 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | 0.66 | % | |||||||||||||
Expenses, prior to (Waivers) and/or Recapture | 0.74 | % | 0.73 | % | 0.67 | % | 0.80 | % | 1.06 | % | |||||||||||||
Net investment income, after (Waivers) and/or Recapture | 0.73 | % | 1.00 | % | 0.91 | % | 0.73 | % | 0.73 | % | |||||||||||||
Portfolio turnover rate † | 116 | % | 98 | % | 86 | % | 76 | % | 118 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | 0.00 | (a) | $ | 0.00 | (a) | $ | (0.03 | ) | $ | 0.01 | — |
PowerShares FTSE NASDAQ Small Cap Portfolio
Year Ended April 30, | For the Period April 1, 2008* Through | ||||||||||||||
2010 | 2009 | April 30, 2008 | |||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||
Net asset value at beginning of period | $ | 16.88 | $ | 25.63 | $ | 25.73 | |||||||||
Net investment income** | 0.00 | (a) | 0.05 | 0.00 | (a) | ||||||||||
Net realized and unrealized gain (loss) on investments | 8.50 | (8.65 | ) | (0.10 | ) | ||||||||||
Total from investment operations | 8.50 | (8.60 | ) | (0.10 | ) | ||||||||||
Distributions to shareholder from: | |||||||||||||||
Net investment income | (0.02 | ) | (0.15 | ) | — | ||||||||||
Net realized gains | — | 0.00 | (a) | — | |||||||||||
Total distributions | (0.02 | ) | (0.15 | ) | — | ||||||||||
Net asset value at end of period | $ | 25.36 | $ | 16.88 | $ | 25.63 | |||||||||
Share price at end of period*** | $ | 25.34 | $ | 16.86 | |||||||||||
NET ASSET VALUE, TOTAL RETURN**** | 50.37 | % | (33.53 | )% | (0.39 | )%(b) | |||||||||
SHARE PRICE TOTAL RETURN**** | 50.43 | % | (33.58 | )% | |||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||
Net assets at end of period (000's omitted) | $ | 1,268 | $ | 1,688 | $ | 2,563 | |||||||||
Ratio to average net assets of: | |||||||||||||||
Expenses | 0.70 | % | 0.70 | % | 0.70 | %†† | |||||||||
Net investment (income) loss | (0.02 | )% | 0.27 | % | (0.09 | )%†† | |||||||||
Portfolio turnover rate † | 25 | % | 19 | % | 0 | % | |||||||||
Undistributed net investment income included in price of units issued and redeemed**# | $ | 0.00 | (a) | $ | 0.00 | (a) | — |
* Commencement of Investment Operations.
** Based on average shares outstanding.
*** The mean between the last bid and ask prices.
**** Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all dividends and distributions at share price during the period, and sale at the share price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
† Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
†† Annualized.
# The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(a) Amount represents less than $0.005.
(b) The total return from Fund Inception (first day of trading on the Exchange) to April 30, 2008 was (0.50)%.
See Notes to Financial Statements.
80
Financial Highlights (Continued)
PowerShares Zacks Micro Cap Portfolio
Year Ended April 30, | For the Period August 18, 2005* Through | ||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | April 30, 2006 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 8.10 | $ | 13.63 | $ | 18.32 | $ | 17.47 | $ | 14.79 | |||||||||||||
Net investment income** | 0.04 | 0.12 | 0.16 | 0.06 | 0.00 | (a) | |||||||||||||||||
Net realized and unrealized gain (loss) on investments | 3.62 | (5.48 | ) | (4.73 | ) | 0.81 | 2.69 | ||||||||||||||||
Total from investment operations | 3.66 | (5.36 | ) | (4.57 | ) | 0.87 | 2.69 | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.07 | ) | (0.17 | ) | (0.12 | ) | (0.02 | ) | (0.01 | ) | |||||||||||||
Return of capital | — | — | — | — | 0.00 | (a) | |||||||||||||||||
Total distributions | (0.07 | ) | (0.17 | ) | (0.12 | ) | (0.02 | ) | (0.01 | ) | |||||||||||||
Net asset value at end of period | $ | 11.69 | $ | 8.10 | $ | 13.63 | $ | 18.32 | $ | 17.47 | |||||||||||||
Share price at end of period*** | $ | 11.68 | $ | 8.10 | |||||||||||||||||||
NET ASSET VALUE, TOTAL RETURN**** | 45.49 | % | (39.70 | )% | (25.07 | )% | 4.99 | % | 18.20 | % | |||||||||||||
SHARE PRICE TOTAL RETURN**** | 45.37 | % | (39.66 | )% | |||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 53,758 | $ | 46,960 | $ | 94,068 | $ | 192,310 | $ | 158,976 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.70 | % | 0.70 | % | 0.70 | % | 0.71 | % | 0.72 | %† | |||||||||||||
Expenses, prior to (Waivers) and/or Recapture | 0.93 | % | 0.86 | % | 0.71 | % | 0.78 | % | 0.82 | %† | |||||||||||||
Net investment income, after (Waivers) and/or Recapture | 0.38 | % | 1.11 | % | 0.99 | % | 0.36 | % | 0.01 | %† | |||||||||||||
Portfolio turnover rate †† | 78 | % | 51 | % | 54 | % | 72 | % | 78 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | 0.01 | $ | 0.00 | (a) | $ | (0.03 | ) | $ | 0.01 | — |
PowerShares Zacks Small Cap Portfolio
Year Ended April 30, | For the Period February 16, 2006* Through | ||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | April 30, 2006 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 14.45 | $ | 23.31 | $ | 27.51 | $ | 26.76 | $ | 25.41 | |||||||||||||
Net investment income** | 0.05 | 0.11 | 0.22 | ††† | 0.05 | 0.02 | |||||||||||||||||
Net realized and unrealized gain (loss) on investments | 5.92 | (8.83 | ) | (4.23 | ) | 0.76 | 1.33 | ||||||||||||||||
Total from investment operations | 5.97 | (8.72 | ) | (4.01 | ) | 0.81 | 1.35 | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.06 | ) | (0.13 | ) | (0.19 | ) | (0.06 | ) | — | ||||||||||||||
Return of capital | — | (0.01 | ) | — | 0.00 | (a) | — | ||||||||||||||||
Total distributions | (0.06 | ) | (0.14 | ) | (0.19 | ) | (0.06 | ) | — | ||||||||||||||
Net asset value at end of period | $ | 20.36 | $ | 14.45 | $ | 23.31 | $ | 27.51 | $ | 26.76 | |||||||||||||
Share price at end of period*** | $ | 20.32 | $ | 14.38 | |||||||||||||||||||
NET ASSET VALUE, TOTAL RETURN**** | 41.41 | % | (37.56 | )% | (14.66 | )% | 3.03 | % | 5.31 | % | |||||||||||||
SHARE PRICE TOTAL RETURN**** | 41.82 | % | (37.84 | )% | |||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 18,322 | $ | 18,788 | $ | 39,630 | $ | 71,530 | $ | 58,866 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.70 | % | 0.70 | % | 0.70 | % | 0.71 | % | 0.75 | %† | |||||||||||||
Expenses, prior to (Waivers) and/or Recapture | 1.21 | % | 1.09 | % | 0.83 | % | 0.89 | % | 1.17 | %† | |||||||||||||
Net investment income, after (Waivers) and/or Recapture | 0.30 | % | 0.58 | % | 0.81 | %††† | 0.19 | % | 0.30 | %† | |||||||||||||
Portfolio turnover rate †† | 124 | % | 63 | % | 58 | % | 87 | % | 1 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | 0.02 | $ | 0.02 | $ | (0.05 | ) | $ | 0.00 | (a) | — |
* Commencement of Investment Operations.
** Based on average shares outstanding.
*** The mean between the last bid and ask prices.
**** Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all dividends and distributions at share price during the period, and sale at the share price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
† Annualized.
†† Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
††† Net investment income per share and the ratio of net investment income to average net assets include a special cash dividend received of $3.00 per share owned of Books-A-Million, Inc. on July 5, 2007. Net investment income per share and the ratio of net investment income to average net assets excluding the special dividend are $0.19 and 0.72%, respectively.
# The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(a) Amount represents less than $0.005.
See Notes to Financial Statements.
81
Notes to Financial Statements
PowerShares Exchange-Traded Fund Trust
April 30, 2010
Note 1. Organization
PowerShares Exchange-Traded Fund Trust (the "Trust") was organized as a Massachusetts business trust on June 9, 2000 and is authorized to have multiple series of portfolios. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"). As of April 30, 2010, the Trust offered sixty-two portfolios. This report includes the following portfolios:
Full Name | Short Name | ||||||
PowerShares Dynamic Large Cap Growth Portfolio | "Dynamic Large Cap Growth Portfolio" | ||||||
PowerShares Dynamic Large Cap Portfolio | "Dynamic Large Cap Portfolio" | ||||||
PowerShares Dynamic Large Cap Value Portfolio | "Dynamic Large Cap Value Portfolio" | ||||||
PowerShares Dynamic Mid Cap Growth Portfolio | "Dynamic Mid Cap Growth Portfolio" | ||||||
PowerShares Dynamic Mid Cap Portfolio | "Dynamic Mid Cap Portfolio" | ||||||
PowerShares Dynamic Mid Cap Value Portfolio | "Dynamic Mid Cap Value Portfolio" | ||||||
PowerShares Dynamic Small Cap Growth Portfolio | "Dynamic Small Cap Growth Portfolio" | ||||||
PowerShares Dynamic Small Cap Portfolio | "Dynamic Small Cap Portfolio" | ||||||
PowerShares Dynamic Small Cap Value Portfolio | "Dynamic Small Cap Value Portfolio" | ||||||
PowerShares FTSE NASDAQ Small Cap Portfolio | "FTSE NASDAQ Small Cap Portfolio" | ||||||
PowerShares Zacks Micro Cap Portfolio | "Zacks Micro Cap Portfolio" | ||||||
PowerShares Zacks Small Cap Portfolio | "Zacks Small Cap Portfolio" | ||||||
Each portfolio (the "Fund" and collectively the "Funds") represents a separate series of the Trust. The shares of the Funds are referred to herein as "Shares" or "Fund's Shares." Each Fund's Shares are listed and traded on the NYSE Arca, Inc., except for Shares of the FTSE NASDAQ Small Cap Portfolio which are listed and traded on The NASDAQ Stock Market LLC.
The Funds' market prices may differ to some degree from the net asset value ("NAV") of the Shares of each Fund. Unlike conventional mutual funds, each Fund issues and redeems Shares on a continuous basis, at NAV, only in a large specified number of Shares, each called a "Creation Unit." Creation Units of each Fund are issued and redeemed principally in-kind for securities included in the relevant index. Except when aggregated in Creation Units, the Shares are not individually redeemable securities of the Funds.
The investment objective of each Fund is to seek investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the following indices (each, an "Underlying Index"):
Fund | Index | ||||||
Dynamic Large Cap Growth Portfolio | Dynamic Large Cap Growth IntellidexSM Index | ||||||
Dynamic Large Cap Portfolio | Dynamic Large Cap IntellidexSM Index | ||||||
Dynamic Large Cap Value Portfolio | Dynamic Large Cap Value IntellidexSM Index | ||||||
Dynamic Mid Cap Growth Portfolio | Dynamic Mid Cap Growth IntellidexSM Index | ||||||
Dynamic Mid Cap Portfolio | Dynamic Mid Cap IntellidexSM Index | ||||||
Dynamic Mid Cap Value Portfolio | Dynamic Mid Cap Value IntellidexSM Index | ||||||
Dynamic Small Cap Growth Portfolio | Dynamic Small Cap Growth IntellidexSM Index | ||||||
Dynamic Small Cap Portfolio | Dynamic Small Cap IntellidexSM Index | ||||||
Dynamic Small Cap Value Portfolio | Dynamic Small Cap Value IntellidexSM Index | ||||||
82
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
Fund | Index | ||||||
FTSE NASDAQ Small Cap Portfolio | FTSE NASDAQ Small Cap Index | ||||||
Zacks Micro Cap Portfolio | Zacks Micro Cap IndexTM | ||||||
Zacks Small Cap Portfolio | Zacks Small Cap IndexTM | ||||||
Note 2. Significant Accounting Policies
The preparation of the financial statements in accordance with Generally Accepted Accounting Principles ("GAAP") in the United States of America requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements, including estimates and assumptions related to taxation. Actual results could differ from these estimates. In addition, the Funds monitor for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
A. Security Valuation
Securities, including restricted securities, are valued according to the following policies.
A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. Listed options, if no closing price is available, are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices.
Investments in open-end registered investment companies not traded on an exchange are valued at the end of day NAV per share.
Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the London world markets. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the New York Stock Exchange ("NYSE"), closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to refl ect fair value may also
83
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts ("ADRs") and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low mar ket liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources.
Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust's officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security's fair value.
Valuations change in response to many factors, including the historical and prospective earnings of the issuer, the value of the issuer's assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B. Other Risks
Replication Management Risk. The Funds are not "actively" managed and do not seek returns in excess of their respective Underlying Indices. Therefore, they would not necessarily sell a stock because the stock's issuer was in financial trouble unless that stock is removed from its Underlying Index.
Non-Diversified Fund Risk. FTSE NASDAQ Small Cap Portfolio is considered non-diversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single investment could cause greater fluctuations in Share price than would occur in a diversified fund.
Concentration Risk. If a Fund concentrates its investments in an industry or group of industries, the value of the Fund's Shares may rise and fall more than the value of shares of a fund that invests in a broader range of securities.
Non-Correlation Risk. Each Fund's return may not match the return of its Underlying Index for a number of reasons. For example, each Fund incurs operating expenses not applicable to its Underlying Index, and incurs costs in buying and selling securities, especially when rebalancing the securities holdings to reflect changes in the composition of its Underlying Index. In addition, the performance of each Fund and its Underlying Index may vary due to asset valuation differences and differences between each Fund's portfolio and its Underlying Index resulting from legal restrictions, cost or liquidity constraints.
84
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
C. Federal Income Taxes
Each Fund intends to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of the Fund's taxable earnings to its shareholders. As such, the Funds will not be subject to Federal income taxes on otherwise taxable income (including net realized gains) that is distributed to the shareholders. Therefore, no provision for Federal income taxes is recorded in the financial statements.
Income and capital gain distributions are determined in accordance with Federal income tax regulations, which may differ from GAAP. These differences are primarily due to differing book and tax treatments for in-kind transactions, losses deferred due to wash sales, and passive foreign investment company adjustments, if any.
The Funds file tax returns in the United States Federal jurisdiction and certain other jurisdictions. Generally, a Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
D. Investment Income and Investment Transactions
Dividend income is recorded on the ex-dividend date net of foreign taxes withheld, if any. Interest income is recorded on the accrual basis. Investment transactions are recorded on the trade date. Realized gains and losses from the sale or disposition of securities are calculated on the specific identified cost basis. Dividends and interest received by a Fund may give rise to withholding and other taxes imposed by foreign countries. Corporate actions (including cash dividends) are recorded net of non-reclaimable foreign tax withholdings on the ex-dividend date. Tax conventions between certain countries and the United States may reduce or eliminate such taxes.
E. Expenses
Expenses of the Trust, which are directly identifiable to a specific Fund, are applied to that Fund. Expenses which are not readily identifiable to a specific Fund are allocated in such a manner as deemed equitable, taking into consideration the nature and type of expense and the relative net assets of each Fund.
Each Fund (except for FTSE NASDAQ Small Cap Portfolio) is responsible for all of its expenses, including the investment advisory fees, costs of transfer agency, custody, fund administration, legal, audit and other services, interest, taxes, brokerage commissions and other expenses connected with executions of portfolio transactions, any distribution fees or expenses and extraordinary expenses.
The FTSE NASDAQ Small Cap Portfolio has agreed to pay an annual unitary management fee to Invesco PowerShares Capital Management LLC (the "Adviser"). The Adviser has agreed to pay for substantially all expenses of the FTSE NASDAQ Small Cap Portfolio, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for advisory fees, distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses.
F. Dividends and Distributions to Shareholders
Each Fund declares and pays dividends from net investment income, if any, to its shareholders quarterly and records on ex-dividend date. Each Fund distributes net realized taxable capital gains, if any, generally annually in cash and recorded on ex-dividend date. Such distributions on a tax basis are determined in conformity with income tax regulations which may differ from GAAP. Distributions in excess of tax basis
85
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
earnings and profits, if any, are reported in such Fund's financial statements as a tax return of capital at fiscal period-end.
G. Equalization
All Funds use the accounting practice of equalization. This accounting method is used to keep the continuing shareholder's per Share equity in undistributed net investment income from being affected by the continuous sales and redemptions of capital Shares. Equalization is calculated on a per Share basis whereby a portion of the proceeds from the sales and cost of repurchases of capital Shares is applied to undistributed net investment income. The amount of equalization is disclosed in the Statements of Changes in Net Assets as undistributed net investment income (loss) included in the price of capital Shares issued or redeemed. The distributions to shareholders of amounts so applied may be deemed to be a return of capital for tax purposes to the extent that such distributions exceed taxable income.
Note 3. Investment Advisory Agreement and Other Agreements
The Trust has entered into an Investment Advisory Agreement with the Adviser pursuant to which the Adviser has overall responsibility as the Funds' investment adviser for the selection and ongoing monitoring of the Funds' investments, managing the Funds' business affairs and providing certain clerical, bookkeeping and other administrative services. Each Fund (except for FTSE NASDAQ Small Cap Portfolio) has agreed to pay the Adviser an annual fee of 0.50% of the Fund's average daily net assets. The FTSE NASDAQ Small Cap Portfolio has agreed to pay the Adviser an annual unitary management fee of 0.70% of its average daily net assets and the Adviser has agreed to pay for substantially all expenses of the FTSE NASDAQ Small Cap Portfolio, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for the management fee, distribution fees, if any, brokerage expenses, taxes, interest, l itigation expenses and other extraordinary expenses.
The Adviser has entered into an Amended and Restated Excess Expense Agreement (the "Excess Expense Agreement") with the Trust, pursuant to which the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of each Fund (except for the FTSE NASDAQ Small Cap Portfolio) (excluding interest expense, brokerage commissions and other trading expenses, sub-licensing fees, offering costs, taxes and extraordinary expenses) from exceeding 0.60% of the Fund's average daily net assets per year (the "Expense Cap"), at least until August 31, 2011. Offering costs excluded from the Expense Cap are: (a) initial legal fees pertaining to the Funds' Shares offered for sale; (b) initial Securities and Exchange Commission and state registration fees; and (c) initial fees paid to be listed on an exchange.
The Excess Expense Agreement provides that the expenses borne by the Adviser are subject to recapture by the Adviser for up to three years from the date the fee or expense was borne by the Adviser, but no recapture payment will be made by a Fund if it would result in the Fund exceeding its Expense Cap as specified above. The Excess Expense Agreement does not apply to the FTSE NASDAQ Small Cap Portfolio.
The net amount of fees waived and other expenses assumed by the Adviser and the amount of recapture paid to the Adviser pursuant to the Excess Expense Agreement are collectively referred to as "(Waivers) and/or Recapture." The net amounts of (Waivers) and/or Recapture for the fiscal year ended April 30, 2010 are shown on the Statements of Operations.
86
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
The amounts available for potential future recapture by the Adviser under the Excess Expense Agreement and the expiration schedule at April 30, 2010 are as follows:
Total Potential | Potential Recapture Amounts Expiring | ||||||||||||||||||
Recapture Amount | 04/30/11 | 04/30/12 | 04/30/13 | ||||||||||||||||
Dynamic Large Cap Portfolio | $ | 285,530 | $ | 109,396 | $ | 88,796 | $ | 87,338 | |||||||||||
Dynamic Large Cap Value Portfolio | 186 | — | — | 186 | |||||||||||||||
Dynamic Mid Cap Growth Portfolio | 101,100 | 26,117 | 34,730 | 40,253 | |||||||||||||||
Dynamic Mid Cap Portfolio | 309,230 | 108,356 | 100,131 | 100,743 | |||||||||||||||
Dynamic Mid Cap Value Portfolio | 226,778 | 51,113 | 86,712 | 88,953 | |||||||||||||||
Dynamic Small Cap Growth Portfolio | 280,008 | 84,184 | 95,759 | 100,065 | |||||||||||||||
Dynamic Small Cap Portfolio | 326,336 | 115,956 | 106,215 | 104,165 | |||||||||||||||
Dynamic Small Cap Value Portfolio | 193,021 | 45,829 | 72,981 | 74,211 | |||||||||||||||
Zacks Micro Cap Portfolio | 248,321 | 33,517 | 105,107 | 109,697 | |||||||||||||||
Zacks Small Cap Portfolio | 306,629 | 86,368 | 110,051 | 110,210 |
The Trust has entered into a Distribution Agreement with Invesco Distributors, Inc. (formerly, Invesco Aim Distributors, Inc.) (the "Distributor"), which serves as the distributor of Creation Units for each Fund. The Distributor does not maintain a secondary market in the Shares.
The Adviser has entered into a licensing agreement for each Fund with the following Licensors:
Fund | Licensors | ||||||
Dynamic Large Cap Growth Portfolio | NYSE Arca | ||||||
Dynamic Large Cap Portfolio | NYSE Arca | ||||||
Dynamic Large Cap Value Portfolio | NYSE Arca | ||||||
Dynamic Mid Cap Growth Portfolio | NYSE Arca | ||||||
Dynamic Mid Cap Portfolio | NYSE Arca | ||||||
Dynamic Mid Cap Value Portfolio | NYSE Arca | ||||||
Dynamic Small Cap Growth Portfolio | NYSE Arca | ||||||
Dynamic Small Cap Portfolio | NYSE Arca | ||||||
Dynamic Small Cap Value Portfolio | NYSE Arca | ||||||
FTSE NASDAQ Small Cap Portfolio | NASDAQ OMX Group, Inc. | ||||||
Zacks Micro Cap Portfolio | Zacks Investment Research, Inc. | ||||||
Zacks Small Cap Portfolio | Zacks Investment Research, Inc. | ||||||
Each Underlying Index name trademark is owned by the respective Licensors. These trademarks have been licensed to the Adviser for use with the Funds. The Funds are not sponsored, endorsed, sold or promoted by the Licensors and the Licensors make no representation regarding the advisability of investing in any of these Funds. The Trust has entered into a sub-licensing agreement under which the Funds (other than FTSE NASDAQ Small Cap Portfolio) are required to pay the sub-licensing fees, which are shown on the Statements of Operations.
The Trust has entered into service agreements whereby The Bank of New York Mellon, a wholly-owned subsidiary of The Bank of New York Mellon Corporation, serves as the administrator, custodian, fund accountant and transfer agent for each Fund.
87
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
Note 4. Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3) generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment's assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of April 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
Investment in Securities | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Dynamic Large Cap Growth Portfolio | |||||||||||||||||||
Equity Securities | $ | 230,332,530 | $ | — | $ | — | $ | 230,332,530 | |||||||||||
Money Market Fund | 106,507 | — | — | 106,507 | |||||||||||||||
Total Investments | 230,439,037 | — | — | 230,439,037 | |||||||||||||||
Dynamic Large Cap Portfolio | |||||||||||||||||||
Equity Securities | 38,361,787 | — | — | 38,361,787 | |||||||||||||||
Money Market Fund | 28,691 | — | — | 28,691 | |||||||||||||||
Total Investments | 38,390,478 | — | — | 38,390,478 | |||||||||||||||
Dynamic Large Cap Value Portfolio | |||||||||||||||||||
Equity Securities | 349,338,681 | — | — | 349,338,681 | |||||||||||||||
Dynamic Mid Cap Growth Portfolio | |||||||||||||||||||
Equity Securities | 128,060,035 | — | — | 128,060,035 | |||||||||||||||
Money Market Fund | 114,467 | — | — | 114,467 | |||||||||||||||
Total Investments | 128,174,502 | — | — | 128,174,502 |
88
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
Investment in Securities | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Dynamic Mid Cap Portfolio | |||||||||||||||||||
Equity Securities | $ | 25,352,830 | $ | — | $ | — | $ | 25,352,830 | |||||||||||
Money Market Fund | 40,980 | — | — | 40,980 | |||||||||||||||
Total Investments | 25,393,810 | — | — | 25,393,810 | |||||||||||||||
Dynamic Mid Cap Value Portfolio | |||||||||||||||||||
Equity Securities | 43,820,965 | — | — | 43,820,965 | |||||||||||||||
Money Market Fund | 43,158 | — | — | 43,158 | |||||||||||||||
Total Investments | 43,864,123 | — | — | 43,864,123 | |||||||||||||||
Dynamic Small Cap Growth Portfolio | |||||||||||||||||||
Equity Securities | 32,493,472 | — | — | 32,493,472 | |||||||||||||||
Money Market Fund | 30,060 | — | — | 30,060 | |||||||||||||||
Total Investments | 32,523,532 | — | — | 32,523,532 | |||||||||||||||
Dynamic Small Cap Portfolio | |||||||||||||||||||
Equity Securities | 18,954,838 | — | — | 18,954,838 | |||||||||||||||
Money Market Fund | 44,172 | — | — | 44,172 | |||||||||||||||
Total Investments | 18,999,010 | — | — | 18,999,010 | |||||||||||||||
Dynamic Small Cap Value Portfolio | |||||||||||||||||||
Equity Securities | 72,411,216 | — | — | 72,411,216 | |||||||||||||||
Money Market Fund | 100,171 | — | — | 100,171 | |||||||||||||||
Total Investments | 72,511,387 | — | — | 72,511,387 | |||||||||||||||
FTSE NASDAQ Small Cap Portfolio | |||||||||||||||||||
Equity Securities | 1,263,986 | — | — | 1,263,986 | |||||||||||||||
Zacks Micro Cap Portfolio | |||||||||||||||||||
Equity Securities | 53,766,834 | — | — | 53,766,834 | |||||||||||||||
Money Market Fund | 68,442 | — | — | 68,442 | |||||||||||||||
Total Investments | 53,835,276 | — | — | 53,835,276 | |||||||||||||||
Zacks Small Cap Portfolio | |||||||||||||||||||
Equity Securities | 18,320,420 | — | — | 18,320,420 | |||||||||||||||
Money Market Fund | 53,156 | — | — | 53,156 | |||||||||||||||
Total Investments | 18,373,576 | — | — | 18,373,576 |
89
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
Note 5. Distributions to Shareholders and Tax Components of Net Assets
Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended April 30, 2010 and 2009:
2010 | 2009 | ||||||||||||||||||||||
Ordinary Income | Return of Capital | Ordinary Income | Long-term Capital Gains | Return of Capital | |||||||||||||||||||
Dynamic Large Cap Growth Portfolio | $ | 2,004,571 | $ | — | $ | 2,172,246 | $ | — | $ | — | |||||||||||||
Dynamic Large Cap Portfolio | 600,837 | — | 365,160 | — | — | ||||||||||||||||||
Dynamic Large Cap Value Portfolio | 7,967,039 | — | 4,825,414 | — | — | ||||||||||||||||||
Dynamic Mid Cap Growth Portfolio | 33,475 | 67,025 | — | — | — | ||||||||||||||||||
Dynamic Mid Cap Portfolio | 182,736 | — | 132,595 | — | — | ||||||||||||||||||
Dynamic Mid Cap Value Portfolio | 858,787 | — | 992,947 | — | — | ||||||||||||||||||
Dynamic Small Cap Growth Portfolio | 193,877 | 41,471 | — | — | — | ||||||||||||||||||
Dynamic Small Cap Portfolio | 130,765 | 12,826 | 45,596 | — | — | ||||||||||||||||||
Dynamic Small Cap Value Portfolio | 464,268 | — | 695,379 | — | — | ||||||||||||||||||
FTSE NASDAQ Small Cap Portfolio | 1,663 | — | 15,180 | 9 | — | ||||||||||||||||||
Zacks Micro Cap Portfolio | 402,300 | — | 1,156,194 | — | — | ||||||||||||||||||
Zacks Small Cap Portfolio | 81,588 | — | 210,193 | — | 20,801 |
Tax Components of Net Assets at Fiscal Year-End:
Undistributed Ordinary Income | Temporary Book/Tax Differences | Net Unrealized Appreciation | Capital Loss Carryforward | Post-October* Deferrals | Shares of Beneficial Interest | Total Net Assets | |||||||||||||||||||||||||
Dynamic Large Cap Growth Portfolio | $ | 225,451 | $ | (11,924 | ) | $ | 35,729,298 | $ | (225,486,905 | ) | $ | (2,919,069 | ) | $ | 422,797,458 | $ | 230,334,309 | ||||||||||||||
Dynamic Large Cap Portfolio | 137,373 | (3,237 | ) | 5,167,945 | (8,037,283 | ) | (351,999 | ) | 41,463,523 | 38,376,322 | |||||||||||||||||||||
Dynamic Large Cap Value Portfolio | 1,909,525 | (8,315 | ) | 32,150,969 | (83,611,081 | ) | (7,262,277 | ) | 406,086,577 | 349,265,398 | |||||||||||||||||||||
Dynamic Mid Cap Growth Portfolio | — | (7,909 | ) | 22,437,455 | (150,724,296 | ) | (4,648,001 | ) | 260,987,065 | 128,044,314 | |||||||||||||||||||||
Dynamic Mid Cap Portfolio | 34,713 | (2,988 | ) | 4,450,476 | (8,054,970 | ) | (65,337 | ) | 28,990,931 | 25,352,825 | |||||||||||||||||||||
Dynamic Mid Cap Value Portfolio | 48,191 | (3,905 | ) | 5,186,862 | (39,659,662 | ) | (957,216 | ) | 79,204,220 | 43,818,490 | |||||||||||||||||||||
Dynamic Small Cap Growth Portfolio | — | (3,517 | ) | 4,063,031 | (40,865,437 | ) | (1,377,444 | ) | 70,655,869 | 32,472,502 | |||||||||||||||||||||
Dynamic Small Cap Portfolio | — | (2,868 | ) | 2,770,769 | (5,777,174 | ) | (611,000 | ) | 22,580,348 | 18,960,075 | |||||||||||||||||||||
Dynamic Small Cap Value Portfolio | 72,733 | (4,309 | ) | 9,628,812 | (39,303,143 | ) | (122,887 | ) | 102,181,898 | 72,453,104 | |||||||||||||||||||||
FTSE NASDAQ Small Cap Portfolio | 31 | — | 67,372 | (322,806 | ) | (89,873 | ) | 1,613,290 | 1,268,014 | ||||||||||||||||||||||
Zacks Micro Cap Portfolio | 256,160 | (4,259 | ) | 7,782,766 | (72,582,290 | ) | (1,890,032 | ) | 120,195,963 | 53,758,308 | |||||||||||||||||||||
Zacks Small Cap Portfolio | 5,467 | (3,252 | ) | 2,881,498 | (29,109,320 | ) | (1,722,736 | ) | 46,270,595 | 18,322,252 |
* Capital losses and Passive Foreign Investment Company ("PFIC") incurred after October 31 ("Post-October losses") within the taxable year are deemed to arise on the first business day of each Fund's next taxable year.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Funds to utilize. The ability to utilize capital loss carryforward in the future may be limited under Internal Revenue Code rules and related regulations based on the results of future transactions.
90
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
The following Funds have capital loss carryforward amounts as of April 30, 2010, which expire on April 30 of each year listed below:
2014 | 2015 | 2016 | 2017 | 2018 | Total* | ||||||||||||||||||||||
Dynamic Large Cap Growth Portfolio | $ | 191,864 | $ | 10,916,066 | $ | 14,024,455 | $ | 68,715,641 | $ | 131,638,879 | $ | 225,486,905 | |||||||||||||||
Dynamic Large Cap Portfolio | — | — | 87,112 | 2,328,337 | 5,621,834 | 8,037,283 | |||||||||||||||||||||
Dynamic Large Cap Value Portfolio | 70,814 | 1,378,743 | 2,783,761 | 22,558,581 | 56,819,182 | 83,611,081 | |||||||||||||||||||||
Dynamic Mid Cap Growth Portfolio | 422,220 | 8,055,857 | 5,112,579 | 54,769,394 | 82,364,246 | 150,724,296 | |||||||||||||||||||||
Dynamic Mid Cap Portfolio | — | — | 628,828 | 3,815,763 | 3,610,379 | 8,054,970 | |||||||||||||||||||||
Dynamic Mid Cap Value Portfolio | 237,806 | 2,384,765 | 5,347,255 | 12,697,113 | 18,992,723 | 39,659,662 | |||||||||||||||||||||
Dynamic Small Cap Growth Portfolio | 823,782 | 13,094,039 | 6,666,558 | 9,888,431 | 10,392,627 | 40,865,437 | |||||||||||||||||||||
Dynamic Small Cap Portfolio | — | — | 1,028,299 | 2,738,120 | 2,010,755 | 5,777,174 | |||||||||||||||||||||
Dynamic Small Cap Value Portfolio | 703,862 | 3,929,009 | 8,615,687 | 16,547,947 | 9,506,638 | 39,303,143 | |||||||||||||||||||||
FTSE NASDAQ Small Cap Portfolio | — | — | — | — | 322,806 | 322,806 | |||||||||||||||||||||
Zacks Micro Cap Portfolio | 1,951,245 | 15,172,527 | 14,330,930 | 28,782,755 | 12,344,833 | 72,582,290 | |||||||||||||||||||||
Zacks Small Cap Portfolio | — | 3,417,527 | 7,222,482 | 10,220,605 | 8,248,706 | 29,109,320 |
* Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code.
Note 6. Investment Transactions
For the fiscal year ended April 30, 2010, the cost of securities purchased and proceeds from sales of securities, excluding short-term securities and in-kind transactions, were as follows:
Purchases | Sales | ||||||||||
Dynamic Large Cap Growth Portfolio | $ | 192,218,324 | $ | 176,617,990 | |||||||
Dynamic Large Cap Portfolio | 24,027,762 | 23,527,068 | |||||||||
Dynamic Large Cap Value Portfolio | 175,442,605 | 146,917,454 | |||||||||
Dynamic Mid Cap Growth Portfolio | 112,053,870 | 98,058,257 | |||||||||
Dynamic Mid Cap Portfolio | 19,140,336 | 16,582,533 | |||||||||
Dynamic Mid Cap Value Portfolio | 42,920,480 | 36,237,897 | |||||||||
Dynamic Small Cap Growth Portfolio | 40,136,086 | 36,025,165 | |||||||||
Dynamic Small Cap Portfolio | 18,584,554 | 15,717,182 | |||||||||
Dynamic Small Cap Value Portfolio | 82,573,035 | 78,225,802 | |||||||||
FTSE NASDAQ Small Cap Portfolio | 512,682 | 498,474 | |||||||||
Zacks Micro Cap Portfolio | 37,297,464 | 38,529,570 | |||||||||
Zacks Small Cap Portfolio | 25,850,712 | 26,094,006 |
91
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
For the fiscal year ended April 30, 2010, in-kind transactions associated with creations and redemptions were as follows:
Securities Received | Securities Delivered | ||||||||||
Dynamic Large Cap Growth Portfolio | $ | 191,718,807 | $ | 341,397,631 | |||||||
Dynamic Large Cap Portfolio | 29,504,824 | 35,771,331 | |||||||||
Dynamic Large Cap Value Portfolio | 316,823,090 | 346,967,037 | |||||||||
Dynamic Mid Cap Growth Portfolio | 131,848,085 | 199,584,525 | |||||||||
Dynamic Mid Cap Portfolio | 21,955,481 | 24,742,276 | |||||||||
Dynamic Mid Cap Value Portfolio | 48,378,832 | 64,024,473 | |||||||||
Dynamic Small Cap Growth Portfolio | 40,574,829 | 53,109,296 | |||||||||
Dynamic Small Cap Portfolio | 23,850,636 | 27,295,923 | |||||||||
Dynamic Small Cap Value Portfolio | 96,102,190 | 113,590,021 | |||||||||
FTSE NASDAQ Small Cap Portfolio | 199,018 | 1,493,710 | |||||||||
Zacks Micro Cap Portfolio | 43,117,548 | 53,079,367 | |||||||||
Zacks Small Cap Portfolio | 12,755,324 | 20,012,090 |
Gains and losses on in-kind transactions are generally not considered taxable gains/losses for Federal income tax purposes.
At April 30, 2010, the aggregate cost and the net unrealized appreciation of investments for tax purposes were as follows:
Cost | Net Unrealized Appreciation | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | ||||||||||||||||
Dynamic Large Cap Growth Portfolio | $ | 194,709,739 | $ | 35,729,298 | $ | 40,547,773 | $ | (4,818,475 | ) | ||||||||||
Dynamic Large Cap Portfolio | 33,222,533 | 5,167,945 | 5,316,545 | (148,600 | ) | ||||||||||||||
Dynamic Large Cap Value Portfolio | 317,187,712 | 32,150,969 | 38,499,846 | (6,348,877 | ) | ||||||||||||||
Dynamic Mid Cap Growth Portfolio | 105,737,047 | 22,437,455 | 23,318,724 | (881,269 | ) | ||||||||||||||
Dynamic Mid Cap Portfolio | 20,943,334 | 4,450,476 | 4,555,837 | (105,361 | ) | ||||||||||||||
Dynamic Mid Cap Value Portfolio | 38,677,261 | 5,186,862 | 5,444,070 | (257,208 | ) | ||||||||||||||
Dynamic Small Cap Growth Portfolio | 28,460,501 | 4,063,031 | 4,745,611 | (682,580 | ) | ||||||||||||||
Dynamic Small Cap Portfolio | 16,228,241 | 2,770,769 | 2,961,660 | (190,891 | ) | ||||||||||||||
Dynamic Small Cap Value Portfolio | 62,882,575 | 9,628,812 | 10,355,340 | (726,528 | ) | ||||||||||||||
FTSE NASDAQ Small Cap Portfolio | 1,196,614 | 67,372 | 251,344 | (183,972 | ) | ||||||||||||||
Zacks Micro Cap Portfolio | 46,052,510 | 7,782,766 | 9,487,953 | (1,705,187 | ) | ||||||||||||||
Zacks Small Cap Portfolio | 15,492,078 | 2,881,498 | 3,650,929 | (769,431 | ) |
92
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
Note 7. Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of investment activity, on April 30, 2010, amounts were reclassified between undistributed net investment income (loss), undistributed net realized loss and Shares of beneficial interest. These reclassifications had no effect on the net assets of each Fund. For the fiscal year ended April 30, 2010, the reclassifications were as follows:
Undistributed Net Investment Income (Loss) | Undistributed Net Realized Gain (Loss) | Shares of Beneficial Interest | |||||||||||||
Dynamic Large Cap Growth Portfolio | $ | 99,913 | $ | (55,511,113 | ) | $ | 55,411,200 | ||||||||
Dynamic Large Cap Portfolio | 11,223 | (5,155,353 | ) | 5,144,130 | |||||||||||
Dynamic Large Cap Value Portfolio | (91,547 | ) | (53,952,360 | ) | 54,043,907 | ||||||||||
Dynamic Mid Cap Growth Portfolio | 92,846 | (35,168,550 | ) | 35,075,704 | |||||||||||
Dynamic Mid Cap Portfolio | 1,885 | (5,247,624 | ) | 5,245,739 | |||||||||||
Dynamic Mid Cap Value Portfolio | 12,087 | (12,142,519 | ) | 12,130,432 | |||||||||||
Dynamic Small Cap Growth Portfolio | 26,995 | (10,207,328 | ) | 10,180,333 | |||||||||||
Dynamic Small Cap Portfolio | 12,319 | (5,533,321 | ) | 5,521,002 | |||||||||||
Dynamic Small Cap Value Portfolio | (34,001 | ) | (19,686,993 | ) | 19,720,994 | ||||||||||
FTSE NASDAQ Small Cap Portfolio | (213 | ) | (281,578 | ) | 281,791 | ||||||||||
Zacks Micro Cap Portfolio | 175,241 | (7,243,813 | ) | 7,068,572 | |||||||||||
Zacks Small Cap Portfolio | (36,023 | ) | (3,690,939 | ) | 3,726,962 |
Note 8. Trustees' Fees
The Funds compensate each Trustee who is not an employee of the Adviser or its affiliates. With respect to the FTSE NASDAQ Small Cap Portfolio, the Adviser, as result of the unitary management fee, pays for such compensation. The "Interested" Trustees of the Trust do not receive any Trustees' fees.
The Trust has adopted a deferred compensation plan (the "Plan"). Under the Plan, a Trustee who is not an "interested person" (as defined in the 1940 Act) (an "Independent Trustee") and has executed a Deferred Fee Agreement (a "Participating Trustee") may defer receipt of all or a portion of his compensation ("Deferral Fees"). Such Deferral Fees are deemed to be invested in selected PowerShares Funds. The Deferral Fees payable to the Participating Trustee are valued as of the date such Deferral Fees would have been paid to the Participating Trustee. The value increases with contributions or with increases in the value of the Shares selected, and the value decreases with distributions or with declines in the value of the Shares selected.
Note 9. Capital
Shares are created and redeemed by the Trust only in Creation Unit size aggregations of 50,000 Shares. Only Authorized Participants are permitted to purchase or redeem Creation Units from the Funds. Such transactions are generally permitted on an in-kind basis, with a balancing cash component to equate the transaction to the NAV per Share of each Fund of the Trust on the transaction date. Cash may be substituted equivalent to the value of certain securities generally when they are not available in sufficient quantity for delivery, not eligible for trading by the Authorized Participant or as a result of other market circumstances.
93
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
Note 10. Indemnifications
Under the Trust's organizational documents, its officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. Each Independent Trustee is also indemnified against certain liabilities arising out of the performance of his duties to the Trust pursuant to an Indemnification Agreement between the Independent Trustee and the Trust. Additionally, in the normal course of business, the Trust enters into contracts with service providers that contain general indemnification clauses. The Trust's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred. However, based on experience, the Trust believes the risk of loss to be remote.
94
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of PowerShares Exchange-Traded Fund Trust:
In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of each of the portfolios indicated in Note 1 of the financial statements (each a portfolio of PowerShares Exchange-Traded Fund Trust, hereafter referred to as the "Trust") at April 30, 2010, and the results of each of their operations, the changes in each of their net assets, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Trust's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at April 30, 2010 by correspondence with the custodian and brokers, and the application of alternative auditing procedures where securities purchased had not been received, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
New York, New York
June 28, 2010
95
Tax Information
Form 1099-DIV, Form 1042-S and other year-end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisers.
The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state's requirement.
Each Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended April 30, 2010:
Federal Income Tax Information
Qualified dividend income* | Corporate dividends- received deduction* | ||||||||||
Dynamic Large Cap Growth Portfolio | 100 | % | 100 | % | |||||||
Dynamic Large Cap Portfolio | 100 | % | 100 | % | |||||||
Dynamic Large Cap Value Portfolio | 100 | % | 100 | % | |||||||
Dynamic Mid Cap Growth Portfolio | 100 | % | 100 | % | |||||||
Dynamic Mid Cap Portfolio | 100 | % | 100 | % | |||||||
Dynamic Mid Cap Value Portfolio | 100 | % | 100 | % | |||||||
Dynamic Small Cap Growth Portfolio | 100 | % | 100 | % | |||||||
Dynamic Small Cap Portfolio | 100 | % | 100 | % | |||||||
Dynamic Small Cap Value Portfolio | 100 | % | 100 | % | |||||||
FTSE NASDAQ Small Cap Portfolio | 100 | % | 100 | % | |||||||
Zacks Micro Cap Portfolio | 100 | % | 100 | % | |||||||
Zacks Small Cap Portfolio | 100 | % | 100 | % |
* The above percentages are based on ordinary income dividends paid to shareholders during the Fund's fiscal year.
96
Proxy Results
A Special Meeting of Shareholders was held on March 22, 2010 to elect seven individuals to the Board of Trustees of PowerShares Exchange-Traded Fund Trust:
The results of the voting on the above matter were as follows:
Trustees | Votes For | Withheld/ Abstentions* | |||||||||
Ronn R. Bagge | 426,624,761 | 8,241,402 | |||||||||
Todd J. Barre | 426,876,044 | 7,990,119 | |||||||||
H. Bruce Bond | 426,681,223 | 8,184,940 | |||||||||
Kevin M. Carome | 425,386,415 | 9,479,748 | |||||||||
Marc M. Kole | 426,529,715 | 8,336,448 | |||||||||
Philip M. Nussbaum | 426,531,618 | 8,334,545 | |||||||||
Donald H. Wilson | 426,691,769 | 8,174,394 |
* Includes Non-Voter.
97
Trustees and Officers
The Independent Trustees, the Trustees who are affiliated with the Adviser (the "Interested Trustees") and the executive officers of the Trust, their term of office and length of time served, their principal business occupations during at least the past five years, the number of portfolios in the Fund Complex overseen by each Trustee and the other directorships, if any, held by a Trustee, are shown below.
The Trustees and officers information is current as of April 30, 2010.
Name, Address and Age of Independent Trustees | Position(s) Held with Trust | Term of Office and Length of Time Served* | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Independent Trustees | Other Directorships Held by Independent Trustees | ||||||||||||||||||
Ronn R. Bagge (52) YQA Capital Management LLC 1755 S. Naperville Rd., Suite 100 Wheaton, IL 60187 | Trustee | Since 2003 | Founder and Principal, YQA Capital Management LLC (1998-Present); formerly Owner/CEO of Electronic Dynamic Balancing Co., Inc. (high-speed rotating equipment service provider) | 111 | None | ||||||||||||||||||
Todd J. Barre (52) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Trustee | Since 2010 | Vice President and Senior Investment Strategist (2001-2008), Director of Open Architecture and Trading (2007-2008), Head of Fundamental Research (2004-2007) and Vice President and Senior Fixed Income Strategist (1994-2001), BMO Financial Group/Harris Private Bank | 111 | None | ||||||||||||||||||
* This is the date the Trustee began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected.
** Fund Complex includes all open-end funds (including all of their portfolios) advised by the Adviser. At April 30, 2010, the Fund Complex consisted of the Trust's 62 portfolios and three other exchange-traded fund trusts with 49 portfolios advised by the Adviser.
98
Trustees and Officers (Continued)
Name, Address and Age of Independent Trustees | Position(s) Held with Trust | Term of Office and Length of Time Served* | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Independent Trustees | Other Directorships Held by Independent Trustees | ||||||||||||||||||
Marc M. Kole (49) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Trustee | Since 2006 | Chief Financial Officer, Hope Network (social services) (2008-Present); formerly Assistant Vice President and Controller, Priority Health (health insurance) (2005-2008); Senior Vice President of Finance, United Healthcare (2004-2005); Senior Vice President of Finance, Oxford Health Plans (2000-2004) | 111 | None | ||||||||||||||||||
Philip M. Nussbaum (48) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Trustee | Since 2003 | Chairman, Performance Trust Capital Partners (formerly Betzold, Berg, Nussbaum & Heitman, Inc.) (2004-Present); formerly Managing Director, Communication Institute (2002-2003); Executive Vice President of Finance, Betzold, Berg, Nussbaum & Heitman, Inc. (1994-1999) | 111 | None | ||||||||||||||||||
* This is the date the Trustee began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected.
** Fund Complex includes all open-end funds (including all of their portfolios) advised by the Adviser. At April 30, 2010, the Fund Complex consisted of the Trust's 62 portfolios and three other exchange-traded fund trusts with 49 portfolios advised by the Adviser.
99
Trustees and Officers (Continued)
Name, Address and Age of Independent Trustees | Position(s) Held with Trust | Term of Office and Length of Time Served* | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Independent Trustees | Other Directorships Held by Independent Trustees | ||||||||||||||||||
Donald H. Wilson (50) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Trustee | Since 2006 | Chairman and Chief Executive Officer, Stone Pillar Advisers, Ltd. (2010-Present); formerly, Chief Operating Officer, AMCORE Financial, Inc. (bank holding company) (2007-2009); Executive Vice President and Chief Financial Officer, AMCORE Financial, Inc. (2006-2007); Senior Vice President and Treasurer, Marshall & Ilsley Corp. (bank holding company) (1995-2006) | 111 | None | ||||||||||||||||||
* This is the date the Trustee began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected.
** Fund Complex includes all open-end funds (including all of their portfolios) advised by the Adviser. At April 30, 2010, the Fund Complex consisted of the Trust's 62 portfolios and three other exchange-traded fund trusts with 49 portfolios advised by the Adviser.
100
Trustees and Officers (Continued)
Name, Address and Age of Interested Trustees | Position(s) Held with Trust | Term of Office and Length of Time Served* | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Interested Trustees | Other Directorships Held by Interested Trustees | ||||||||||||||||||
H. Bruce Bond (46) Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Chairman of the Board and Trustee | Since 2003 | Chairman, Invesco Power-Shares Capital Management LLC (2009-Present); formerly, Managing Director, Invesco PowerShares Capital Management LLC (2002-2009); Manager, Nuveen Investments (1998-2002) | 111 | None | ||||||||||||||||||
Kevin M. Carome (53) Invesco Ltd. Two Peachtree Pointe 1555 Peachtree St., N.E., Suite 1800 Atlanta, GA 30309 | Trustee | Since 2010 | Senior Managing Director and General Counsel, Invesco Ltd. (2006-Present); formerly, Senior Vice President and General Counsel, Invesco Advisors, Inc. (2003-2005); Senior Vice President and General Counsel, Liberty Financial Companies, Inc. (2000-2001); General Counsel of certain investment management subsidiaries of Liberty Financial Companies, Inc. (1998-2000); Associate General Counsel, Liberty Financial Companies, Inc. (1993-1998); Associate, Ropes & Gray LLP | 111 | None | ||||||||||||||||||
* This is the date the Interested Trustee began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected.
** Fund Complex includes all open-end funds (including all of their portfolios) advised by the Adviser. At April 30, 2010, the Fund Complex consisted of the Trust's 62 portfolios and three other exchange-traded fund trusts with 49 portfolios advised by the Adviser.
101
Trustees and Officers (Continued)
Name, Address and Age of Executive Officer | Position(s) Held with Trust | Length of Time Served* | Principal Occupation(s) During Past 5 Years | ||||||||||||
Andrew Schlossberg (35) Invesco Management Group, Inc. 11 Greenway Plaza Suite 100 Houston, Texas 77046 | President | Since 2009 | Managing Director, U.S. head of business strategy and chief marketing officer for Invesco Ltd. in the United States (2008-Present); formerly, Mr. Schlossberg served in multiple roles within Invesco, including head of corporate development, as well as global leadership roles in strategy and product development in the company's North American Institutional and Retirement divisions (2002-2007) | ||||||||||||
Bruce T. Duncan (55) Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Treasurer and Secretary | Treasurer since 2006; Secretary since 2008 | Senior Vice President of Finance, Invesco PowerShares Capital Management LLC (2005-Present); formerly Private Practice Attorney (2000-2005); Vice President of Investor Relations, The ServiceMaster Company (1994-2000); Vice President of Taxes, The ServiceMaster Company (1990-2000) | ||||||||||||
Benjamin Fulton (48) Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Vice President | Since 2009 | Executive Vice President – Global Product Development, Invesco PowerShares Capital Management LLC (2005-Present); formerly, principal of Clermont Consulting, a consulting firm focused on the creation and development of retail investment products (2003-2005); President and a founding partner of Claymore Securities, a financial services firm in the Chicago land area (2001-2003); Managing Director of Structured Investments at Nuveen Investments (1998-2001) | ||||||||||||
Peter Hubbard (28) Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Vice President | Since 2009 | Vice President and Director of Portfolio Management – Invesco PowerShares Capital Management LLC (2008-Present); formerly, Research Analyst, Invesco PowerShares Capital Management LLC (2005-2007); Research Analyst and Trader, Ritchie Capital, a hedge fund operator (2003-2005) | ||||||||||||
* This is the period for which the Officers began serving the Trust. Each Officer serves a one year term, until his successor is elected.
102
Trustees and Officers (Continued)
Name, Address and Age of Executive Officer | Position(s) Held with Trust | Length of Time Served* | Principal Occupation(s) During Past 5 Years | ||||||||||||
David Warren (52) Invesco Trimark Ltd. 5140 Yonge Street Suite 900 Toronto, Ontario M2N 6X7 | Vice President | Since 2009 | Director, Executive Vice President and Chief Financial Officer, Invesco Trimark Ltd. and Chief Administrative Officer, North American Retail, Invesco Ltd (2007-Present); formerly, Director, Executive Vice President and Chief Financial Officer, Invesco Trimark Ltd. (2000-2006) | ||||||||||||
Todd Spillane (51) Invesco PowerShares Capital Management LLC 11 Greenway Plaza Suite 100 Houston, Texas 77046 | Chief Compliance Officer | Since 2010 | Senior Vice President, Invesco Management Group, Inc.; Chief Compliance Officer, INVESCO Private Capital Investments, Inc. (holding company), Invesco Private Capital, Inc. (registered investment adviser) and Invesco Senior Secured Management, Inc. (registered investment adviser); Chief Compliance Officer and Senior Vice President, Invesco Advisers, Inc. (formerly Invesco Institutional, (N.A.), Inc. – registered investment adviser) and Vice President, Invesco Distributors, Inc. and Invesco Investment Services, Inc.; formerly: Chief Compliance Officer, Invesco Global Asset Management (N.A.), Inc. – registered investment adviser) and Invesco Advisers, Inc. (formerly Invesco Institutional (N.A.), Inc.) (registered investment adviser); Senior Vice President and Chief Compliance Officer, Invesco Advisors, Inc., Invesco Capital Management, Inc. and Invesco Private Asset Management, Inc.; Vice President, Invesco Capital Management, Inc. and F und Management Company | ||||||||||||
Availability of Additional Information About the Trustees
The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request at 800.337.4246.
* This is the period for which the Officers began serving the Trust. Each Officer serves a one year term, until his successor is elected.
103
Board Considerations Regarding Continuation of Investment Advisory Agreement
At a meeting held on April 15, 2010, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust (the "Trust"), including the Independent Trustees, unanimously approved the continuation of the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the "Adviser") and the Trust for the following 57 series (each, a "Fund" and collectively, the "Funds"):
PowerShares Dynamic Market Portfolio
PowerShares Dynamic OTC Portfolio
PowerShares Golden Dragon Halter USX China Portfolio
PowerShares High Yield Equity Dividend AchieversTM Portfolio
PowerShares WilderHill Clean Energy Portfolio
PowerShares Dynamic Large Cap Growth Portfolio
PowerShares Dynamic Large Cap Value Portfolio
PowerShares Dynamic Mid Cap Growth Portfolio
PowerShares Dynamic Mid Cap Value Portfolio
PowerShares Dynamic Small Cap Growth Portfolio
PowerShares Dynamic Small Cap Value Portfolio
PowerShares Dynamic Biotechnology & Genome Portfolio
PowerShares Dynamic Food & Beverage Portfolio
PowerShares Dynamic Leisure and Entertainment Portfolio
PowerShares Dynamic Media Portfolio
PowerShares Dynamic Networking Portfolio
PowerShares Dynamic Pharmaceuticals Portfolio
PowerShares Dynamic Semiconductors Portfolio
PowerShares Dynamic Software Portfolio
PowerShares Zacks Micro Cap Portfolio
PowerShares Aerospace & Defense Portfolio
PowerShares Dynamic Telecommunications & Wireless Portfolio
PowerShares Value Line Timeliness Select Portfolio
PowerShares Dividend AchieversTM Portfolio
PowerShares International Dividend AchieversTM Portfolio
PowerShares Zacks Small Cap Portfolio
PowerShares Dynamic Building and Construction Portfolio
PowerShares Dynamic Energy Exploration and Production Portfolio
PowerShares Dynamic Insurance Portfolio
PowerShares Dynamic Oil and Gas Services Portfolio
PowerShares Dynamic Retail Portfolio
PowerShares Dynamic Utilities Portfolio
PowerShares Lux Nanotech Portfolio
PowerShares FTSE RAFI US 1000 Portfolio
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio
PowerShares Water Resources Portfolio
PowerShares Dynamic Energy Sector Portfolio
PowerShares Dynamic Financial Sector Portfolio
PowerShares Dynamic Healthcare Sector Portfolio
PowerShares Dynamic Industrials Sector Portfolio
PowerShares Dynamic Large Cap Portfolio
PowerShares Dynamic MagniQuant Portfolio
PowerShares Dynamic Mid Cap Portfolio
PowerShares Dynamic Small Cap Portfolio
PowerShares Dynamic Technology Sector Portfolio
PowerShares Buyback AchieversTM Portfolio
PowerShares Cleantech Portfolio
PowerShares Dynamic Banking Portfolio
PowerShares Dynamic Basic Materials Sector Portfolio
PowerShares Dynamic Consumer Discretionary Sector Portfolio
PowerShares Dynamic Consumer Staples Sector Portfolio
PowerShares Dynamic Healthcare Services Portfolio
PowerShares Financial Preferred Portfolio
PowerShares Global Listed Private Equity Portfolio
PowerShares DWA Technical Leaders Portfolio
PowerShares Value Line Industry Rotation Portfolio
PowerShares WilderHill Progressive Energy Portfolio
104
Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)
The Trustees reviewed information from the Adviser describing: (i) the nature, extent and quality of services provided, (ii) the investment performance of the Funds and the Adviser, (iii) the costs of services provided and estimated profits realized by the Adviser, (iv) the extent to which economies of scale are realized as the Funds grow, (v) whether fee levels reflect any possible economies of scale for the benefit of Fund shareholders, (vi) comparisons of services rendered and amounts paid to other registered investment companies and (vii) any benefits realized by the Adviser from its relationship with each Fund. Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the continuation of the Investment Advisory Agreement for each Fund. No single factor was determinative in the Board's analysis.
Nature, Extent and Quality of Services. In evaluating the nature, extent and quality of the Adviser's services, the Trustees reviewed information concerning the functions performed by the Adviser for the Funds, information describing the Adviser's current organization and projected staffing, including operations assistance provided by the Adviser's parent organization, Invesco Ltd., and the background and experience of the persons responsible for the day-to-day management of the Funds. The Trustees reviewed matters related to the Adviser's execution of portfolio transactions on behalf of the Funds. The Trustees also reviewed information on the performance of the Funds and the performance of their underlying indices through December 31, 2009. The Trustees also reviewed reports on the correlation and tracking error between the underlying index and each Fund's performance, including a report of Ibbotson Associates, a consultant to the Independent Trustees, that analyzed the reasons for tracking error for certain PowerShares funds, as well as the Adviser's analysis of the tracking error between each Fund and its underlying index. The Trustees noted that each Fund's correlation was within the targeted range set forth in the Trust's registration statement and that, for each Fund other than PowerShares Global Listed Private Equity Portfolio, the tracking error was within the targeted range set forth in the Trust's registration statement. The Trustees reviewed the reasons for PowerShares Global Listed Private Equity Portfolio's tracking error. The Trustees concluded that each Fund was correlated to its underlying index and that the tracking error for each Fund was within an acceptable range given that Fund's particular circumstances.
The Trustees also considered the services provided by the Adviser in its oversight of the Funds' administrator, custodian and transfer agent. They noted the significant amount of time and effort that had been devoted to this oversight function.
Based on their review, the Trustees concluded that the nature, extent and quality of services provided by the Adviser to the Funds under the Investment Advisory Agreement were appropriate and reasonable.
Fees, Expenses and Profitability. The Trustees reviewed and discussed the information provided by the Adviser on each Fund's expense ratio and advisory fee, as compared to information compiled by the Adviser from Lipper Inc. databases on the expense ratios of comparable exchange-traded funds ("ETFs"), open-end (non-ETF) index funds and open-end actively-managed funds. The Trustees noted that the annual advisory fee charged to each Fund is:
• 0.50% of the Fund's average net assets, for each Fund other than PowerShares High Yield Equity Dividend AchieversTM Portfolio, PowerShares Dividend AchieversTM Portfolio, PowerShares International Dividend AchieversTM Portfolio, PowerShares FTSE RAFI US 1000 Portfolio and PowerShares FTSE RAFI US 1500 Small-Mid Portfolio;
105
Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)
• 0.40% of the Fund's average net assets, for each of PowerShares High Yield Equity Dividend AchieversTM Portfolio, PowerShares Dividend AchieversTM Portfolio and PowerShares International Dividend AchieversTM Portfolio; and
• 0.29% of the Fund's average net assets, for each of PowerShares FTSE RAFI US 1000 Portfolio and PowerShares FTSE RAFI US 1500 Small-Mid Portfolio.
The Trustees also noted that the Adviser has agreed to waive a portion of its advisory fee and/or pay expenses (an "Expense Cap") to the extent necessary to prevent the annual operating expenses of each Fund from exceeding the percentage of that Fund's average daily net assets, at least until August 31, 2011, as set forth below:
• 0.60%, excluding interest expenses, brokerage commissions and other trading expenses, taxes and extraordinary expenses, for each of PowerShares Dynamic OTC Portfolio and PowerShares Dynamic Market Portfolio;
• 0.50%, excluding interest expenses, licensing fees, offering costs, brokerage commissions and other trading expenses, taxes and extraordinary expenses, for each of PowerShares High Yield Equity Dividend AchieversTM Portfolio, PowerShares Dividend AchieversTM Portfolio and PowerShares International Dividend AchieversTM Portfolio;
• 0.39%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes and extraordinary expenses, for each of PowerShares FTSE RAFI US 1000 Portfolio and PowerShares FTSE RAFI US 1500 Small-Mid Portfolio; and
• 0.60%, excluding interest expenses, licensing fees, offering costs, brokerage commissions and other trading expenses, taxes and extraordinary expenses, for each other Fund.
The Trustees noted that the Adviser represented that it does not provide investment advisory services to any clients other than the Funds and other ETFs overseen by the Board. The Trustees noted that each Fund's advisory fee was:
• higher than the median advisory fee of its ETF peer funds (except for the advisory fee of each of PowerShares Financial Preferred Portfolio, PowerShares Golden Dragon Halter USX China Portfolio and PowerShares International Dividend AchieversTM Portfolio, which was lower than the median advisory fee of its ETF peer funds); and
• higher than the median advisory fee of its open-end index peer funds (except for the advisory fee of each of PowerShares DWA Technical Leaders Portfolio, PowerShares Dynamic Banking Portfolio, PowerShares Dynamic Financial Sector Portfolio, PowerShares Dynamic Insurance Portfolio, PowerShares Dynamic Mid Cap Growth Portfolio, PowerShares Dynamic Mid Cap Value Portfolio, PowerShares Dynamic OTC Portfolio, PowerShares Financial Preferred Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Golden Dragon Halter USX China Portfolio, PowerShares International Dividend AchieversTM Portfolio, PowerShares Value Line Industry Rotation Portfolio and PowerShares Value Line Timeliness Select Portfolio, which was equal to or lower than the median advisory fee of its open-end index peer funds, and there was no comparable data for PowerShares Dynamic Basic Materials Sector Portfolio); but
106
Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)
• lower than the median advisory fee of its open-end actively-managed peer funds.
The Trustees determined that the advisory fees were reasonable, noting the complexity of the indices, which generally require more frequent rebalancing of the portfolios, the distinguishing factors of the Funds, and the higher administrative, operational and management oversight costs for the Adviser. With respect to the Funds' expense ratios, the Trustees noted that the net expense ratio for each Fund was:
• higher than the median expense ratio of its ETF peer funds (except for the net expense ratio of each of PowerShares Dynamic OTC Portfolio, PowerShares FTSE RAFI US 1000 Portfolio and PowerShares International Dividend AchieversTM Portfolio, which was less than the median expense ratio of its ETF peer funds); and
• higher than the median expense ratio of its open-end index peer funds (except for the net expense ratio of each of PowerShares Dynamic Banking Portfolio, PowerShares Dynamic Financial Sector Portfolio, PowerShares Dynamic Insurance Portfolio, PowerShares Dynamic Mid Cap Growth Portfolio, PowerShares Dynamic Mid Cap Value Portfolio, PowerShares Dynamic Oil and Gas Services Portfolio, PowerShares Dynamic Small Cap Growth Portfolio, PowerShares Dynamic Telecommunications & Wireless Portfolio, PowerShares Dynamic Utilities Portfolio, PowerShares Financial Preferred Portfolio and PowerShares Global Listed Private Equity Portfolio, which was lower than the median expense ratio of its open-end index peer funds, and there was no comparable data for PowerShares Dynamic Basic Materials Sector Portfolio); but
• lower than the median expense ratio of its open-end actively-managed peer funds.
The Trustees noted that a significant component of the non-advisory fee expenses was the license fees paid by the Funds.
The Board concluded that the advisory fee and expense ratio of each Fund (giving effect to the Fund's Expense Cap) were reasonable and appropriate in light of the services provided.
In conjunction with their review of fees, the Trustees also considered information provided by the Adviser on the revenues received by the Adviser under the Investment Advisory Agreement for each Fund, as well as the fees waived and expenses reimbursed by the Adviser for the Funds. The Trustees reviewed information provided by the Adviser on its profitability as well as any profits or losses realized by the Adviser from its relationship to each Fund. The Trustees concluded that the estimated profitability to the Adviser of the advisory services provided to any of the Funds was not unreasonable.
Economies of Scale and Whether Fee Levels Reflect These Economies of Scale. The Trustees reviewed the information provided by the Adviser as to the extent to which economies of scale are realized as each Fund grows and whether fee levels reflect economies of scale for the benefit of shareholders. The Trustees reviewed each Fund's asset size, expense ratio and expense limitation agreed to by the Adviser. The Trustees noted that, for Funds whose expenses are higher than their respective Expense Caps, any reduction in that Fund's expenses would be enjoyed by the Adviser, but that Fund shareholders benefit from the lower expense ratio as a result of the Fund's Expense Cap. The Trustees also noted that the Excess Expense Agreement with the Trust provides that the Adviser is entitled to be reimbursed by each Fund, other than PowerShares Dynamic Market Portf olio and PowerShares Dynamic OTC Portfolio, for fees waived or expenses absorbed pursuant to the Expense Cap for a period of three years from the date
107
Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)
the fee or expense was incurred, provided that no reimbursement would be made that would result in a Fund exceeding its Expense Cap. The Trustees considered whether the advisory fee rate for each Fund was reasonable in relation to the asset size of that Fund, and concluded that the flat advisory fee was reasonable and appropriate, noting the Fund expenses the Adviser has borne as a result of the Expense Cap.
The Trustees noted that the Adviser had not identified any further benefits that it derived from its relationship with the Funds and had noted that it does not have any soft-dollar arrangements.
Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the continuation of the Investment Advisory Agreement for each Fund. No single factor was determinative in the Board's analysis.
108
Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)
At a meeting held on April 15, 2010, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust (the "Trust"), including the Independent Trustees, unanimously approved the continuation of the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the "Adviser") and the Trust for the following five series (each, a "Fund" and collectively, the "Funds"):
PowerShares FTSE NASDAQ Small Cap Portfolio
PowerShares NASDAQ Internet Portfolio
PowerShares NASDAQ-100 BuyWrite Portfolio
PowerShares NXQ Portfolio
PowerShares S&P 500 BuyWrite Portfolio
The Trustees reviewed information from the Adviser describing: (i) the nature, extent and quality of services provided, (ii) the investment performance of the Funds and the Adviser, (iii) the costs of services provided and estimated profits realized by the Adviser, (iv) the extent to which economies of scale are realized as the Funds grow, (v) whether fee levels reflect any possible economies of scale for the benefit of Fund shareholders, (vi) comparisons of services rendered and amounts paid to other registered investment companies and (vii) any benefits realized by the Adviser from its relationship with each Fund. Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the continuation of the Investment Advisory Agreement for each Fund. No single factor was determinative in the Board's analysis.
Nature, Extent and Quality of Services. In evaluating the nature, extent and quality of the Adviser's services, the Trustees reviewed information concerning the functions performed by the Adviser for the Funds, information describing the Adviser's current organization and projected staffing, including operations assistance provided by the Adviser's parent organization, Invesco Ltd., and the background and experience of the persons responsible for the day-to-day management of the Funds. The Trustees reviewed matters related to the Adviser's oversight of the execution of portfolio transactions on behalf of the Funds. The Trustees also reviewed information on the performance of the Funds and the performance of their underlying indices through December 31, 2009. The Trustees also reviewed reports on the correlation and tracking error between the underlyin g index and each Fund's performance, including a report of Ibbotson Associates, a consultant to the Independent Trustees, that analyzed the reasons for tracking error for certain PowerShares funds, as well as the Adviser's analysis of the tracking error between each Fund and its underlying index. The Trustees noted that, in each case, the correlation and tracking error for each Fund was within the targeted range set forth in the Trust's registration statement. The Trustees concluded that each Fund was correlated to its underlying index and that the tracking error for each Fund was within an acceptable range given that Fund's particular circumstances.
The Trustees also considered the services provided by the Adviser in its oversight of the Funds' administrator, custodian and transfer agent. They noted the significant amount of time and effort that had been devoted to this oversight function.
Based on their review, the Trustees concluded that the nature, extent and quality of services provided by the Adviser to the Funds under the Investment Advisory Agreement were appropriate and reasonable.
Fees, Expenses and Profitability. The Trustees reviewed and discussed the information provided by the Adviser on each Fund's total expense ratio and unitary advisory fee, as compared to information compiled by the Adviser from Lipper Inc. databases on the expense ratios of comparable exchange-traded funds ("ETFs"), open-end (non-ETF) index funds and open-end actively-managed funds. The Trustees noted that
109
Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)
the annual unitary advisory fee is 0.70% for each of PowerShares FTSE NASDAQ Small Cap Portfolio and PowerShares NXQ Portfolio, 0.60% for PowerShares NASDAQ Internet Portfolio and 0.75% for each of PowerShares NASDAQ-100 BuyWrite Portfolio and PowerShares S&P 500 BuyWrite Portfolio, and that the Adviser pays all other expenses of each Fund, except that each Fund pays its brokerage expenses, taxes, interest and extraordinary expenses.
The Trustees noted that the Adviser represented that it does not provide investment advisory services to any clients other than the Funds and other ETFs overseen by the Board. The Trustees noted that: the advisory fee for PowerShares FTSE NASDAQ Small Cap Portfolio was higher than the median expense ratios of its ETF peer funds and open-end index peer funds, but lower than the median expense ratio of its open-end actively-managed peer funds; the advisory fee for PowerShares NASDAQ Internet Portfolio was equal to or lower than the median expense ratio of its ETF peer funds and open-end actively-managed peer funds, but higher than its open-end index peer funds; the advisory fee for each of PowerShares NASDAQ-100 BuyWrite Portfolio and PowerShares S&P 500 BuyWrite Portfolio was equal to or lower than the median expense ratio for each of its peer group funds; and the advisory fee for PowerShares NXQ Portfolio was higher than the median expense ratio of its ETF peer funds, but lower than the median expense ratios of its open-end index peer funds and open-end actively-managed peer funds. The Trustees noted that each Fund's advisory fee was reasonable because of the complexity of the indices, which generally require more frequent rebalancing of the portfolios, the distinguishing factors of the Funds and the higher administrative, operational and management oversight costs for the Adviser. The Trustees also noted that a portion of each Fund's advisory fee was attributable to a license fee payable out of the unitary fee charged to that Fund. The Board concluded that the unitary advisory fee charged to each Fund was reasonable and appropriate in light of the services provided.
In conjunction with their review of the unitary advisory fee, the Trustees also considered information provided by the Adviser on the revenues received by the Adviser under the Investment Advisory Agreement. The Trustees reviewed information provided by the Adviser on its profitability as well as any profits or losses realized by the Adviser from its relationship to each Fund. The Trustees concluded that the estimated profitability to the Adviser of the advisory services provided to any of the Funds was not unreasonable.
Economies of Scale and Whether Fee Levels Reflect These Economies of Scale. The Trustees reviewed the information provided by the Adviser as to the extent to which economies of scale are realized as each Fund grows and whether fee levels reflect economies of scale for the benefit of shareholders. The Trustees reviewed each Fund's asset size and expense ratio. The Trustees noted that any reduction in fixed costs associated with the management of the Funds would be enjoyed by the Adviser, but a unitary fee provides certainty in expenses for the Funds. The Trustees considered whether the advisory fee rate for each Fund was reasonable in relation to the asset size of that Fund, and concluded that the flat advisory fee was reasonable and appropriate.
The Trustees noted that the Adviser had not identified any further benefits that it derived from its relationship with the Funds and had noted that it does not have any soft-dollar arrangements.
Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the continuation of the Investment Advisory Agreement for each Fund. No single factor was determinative in the Board's analysis.
110
This page intentionally left blank
This page intentionally left blank
PROXY VOTING POLICIES AND PROCEDURES
A description of the Funds' proxy voting policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available, without charge and upon request, by calling (800) 337-4246. This information is also available on the Securities and Exchange Commission's ("Commission") website at www.sec.gov.
Information regarding how the Funds voted proxies for portfolio securities, if applicable, during the most recent 12-month period ended June 30, is also available, without charge and upon request, by (i) calling (800) 337-4246; or (ii) accessing the Funds' Form N-PX on the Commission's website at www.sec.gov.
QUARTERLY PORTFOLIOS
The Funds file their complete schedules of portfolio holdings with the Commission for the first and third quarters of each fiscal year on Form N-Q. The Funds' Forms N-Q are available on the Commission's website at www.sec.gov. The Funds' Forms N-Q may also be reviewed and copied at the Commission's Public Reference Room in Washington, D.C.; information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330.
301 West Roosevelt Road
Wheaton, IL 60187
800.983.0903
www.invescopowershares.com
© 2009 Invesco PowerShares Capital Management LLC P-PS-AR-5
2010 Annual Report to Shareholders
April 30, 2010
PowerShares Aerospace & Defense Portfolio
PowerShares CleantechTM Portfolio
PowerShares DWA Technical LeadersTM Portfolio
PowerShares Global Listed Private Equity Portfolio
PowerShares Golden Dragon Halter USX China Portfolio
PowerShares Lux Nanotech Portfolio
PowerShares NASDAQ-100 BuyWrite Portfolio
PowerShares S&P 500 BuyWrite Portfolio
PowerShares Value Line Industry Rotation Portfolio
PowerShares Value Line TimelinessTM Select Portfolio
PowerShares Water Resources Portfolio
PowerShares WilderHill Clean Energy Portfolio
PowerShares WilderHill Progressive Energy Portfolio
Table of Contents
The Market Environment | 2 | ||||||
Manager's Analysis | 4 | ||||||
Frequency Distribution of Discounts & Premiums | 32 | ||||||
Fees and Expenses | 34 | ||||||
Specialty Portfolios | |||||||
Schedules of Investments | |||||||
PowerShares Aerospace & Defense Portfolio | 36 | ||||||
PowerShares CleantechTM Portfolio | 37 | ||||||
PowerShares DWA Technical LeadersTM Portfolio | 39 | ||||||
PowerShares Global Listed Private Equity Portfolio | 41 | ||||||
PowerShares Golden Dragon Halter USX China Portfolio | 42 | ||||||
PowerShares Lux Nanotech Portfolio | 44 | ||||||
PowerShares NASDAQ-100 BuyWrite Portfolio | 45 | ||||||
PowerShares S&P 500 BuyWrite Portfolio | 47 | ||||||
PowerShares Value Line Industry Rotation Portfolio | 53 | ||||||
PowerShares Value Line TimelinessTM Select Portfolio | 55 | ||||||
PowerShares Water Resources Portfolio | 56 | ||||||
PowerShares WilderHill Clean Energy Portfolio | 57 | ||||||
PowerShares WilderHill Progressive Energy Portfolio | 59 | ||||||
Statements of Assets and Liabilities | 60 | ||||||
Statements of Operations | 62 | ||||||
Statements of Changes in Net Assets | 64 | ||||||
Financial Highlights | 69 | ||||||
Notes to Financial Statements | 76 | ||||||
Report of Independent Registered Public Accounting Firm | 93 | ||||||
Tax Information | 94 | ||||||
Proxy Results | 95 | ||||||
Trustees and Officers | 96 | ||||||
Board Considerations Regarding Continuation of Investment Advisory Agreements | 102 | ||||||
The Market Environment
For the fiscal year ended April 30, 2010 (the "reporting period"), the U.S. markets recouped more than their previous year's losses. With the government's bank support programs firmly in place, the U.S. economy rebounded from its worst recession since the 1920s and U.S. equity markets rallied accordingly during the same period with the following performance: S&P 500® Index returned 38.82%, Dow Jones Industrial Index returned 38.61% and NASDAQ-100® Index returned 44.44%. As a result of the tremendous government assistance provided to U.S. banks, insurers, and automotive companies, consumer discretionary and financial stocks surged the most out of the ten S&P 500® sectors. Despite the sharp rise in U.S. equity prices, almost $23 billion in outflows occurred during this timeframe (based on Investment Company Institute statistics) as investors re-allocated their assets to income-g enerating products.
Interest rates remained at historically low levels, which supported bond prices during the reporting period. With the exception of U.S. Treasuries, fixed income markets enjoyed unprecedented gains in both total returns and inflows over the reporting period. Despite a newfound aversion to equity risk, investors put the most money to work in the riskiest bond sectors. As a result, higher beta bond sectors performed the best during the reporting period. For example, the Bank of America Merrill Lynch (BAML) U.S. High Yield Master II Index returned 44.20%, while the BAML U.S. Corporate, Government & Mortgage Index (prev. Domestic Master) returned 7.84% during the reporting period. Municipal bonds benefited from low supply and the establishment of the Build America Bond (BAB) program. As a result, the BAML Municipal Master Index returned 9.73% and the BAML BAB Index returned 9.60%. According to ICI statistics, domestic bond funds grew at a record pace during the reporting period, experiencing $353.5 billion in taxable inflows and $68.5 billion in municipal bond inflows.
2
This page intentionally left blank
Manager's Analysis
PowerShares Aerospace & Defense Portfolio (ticker: PPA)
The PowerShares Aerospace & Defense Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the SPADETM Defense Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 44.36%. Over this same year, the Index returned 42.84%, while the S&P SuperComposite Aerospace & Defense Index returned 51.46%. The Fund benefited from positive performance in industrials, information technology and materials sectors. Fund performance was positive within each sector in which it was invested.
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Aerospace/Defense | 54.0 | ||||||
Miscellaneous Manufacturing | 14.4 | ||||||
Telecommunications | 5.6 | ||||||
Computers | 5.6 | ||||||
Metal Fabricate/Hardware | 4.8 | ||||||
Electronics | 4.0 | ||||||
Commercial Services | 3.9 | ||||||
Engineering & Construction | 2.6 | ||||||
Packaging & Containers | 2.5 | ||||||
Auto Manufacturers | 1.9 | ||||||
Software | 0.8 | ||||||
Money Market Fund | 0.0 | ||||||
Other | (0.1 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Large-Cap Value | 46.7 | ||||||
Mid-Cap Value | 20.8 | ||||||
Mid-Cap Growth | 12.3 | ||||||
Small-Cap Growth | 9.3 | ||||||
Large-Cap Growth | 6.6 | ||||||
Small-Cap Value | 4.3 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
Honeywell International, Inc. | 6.9 | ||||||
United Technologies Corp. | 6.6 | ||||||
Boeing Co. (The) | 6.4 | ||||||
Lockheed Martin Corp. | 6.0 | ||||||
General Dynamics Corp. | 5.6 | ||||||
Precision Castparts Corp. | 4.6 | ||||||
Northrop Grumman Corp. | 4.6 | ||||||
Raytheon Co. | 4.5 | ||||||
ITT Corp. | 4.1 | ||||||
Goodrich Corp. | 4.1 | ||||||
Total | 53.4 |
4
Manager's Analysis (Continued)
PowerShares Aerospace & Defense Portfolio (ticker: PPA)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) As of April 30, 2010
Avg Ann†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg Ann†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
SPADETM Defense Index | 42.84 | % | -1.89 | % | 5.61 | % | 27.89 | % | |||||||||||
S&P SuperComposite Aerospace & Defense Index | 51.46 | % | 0.69 | % | 9.34 | % | 49.46 | % | |||||||||||
DJ US Aerospace and Defense Index | 48.50 | % | -1.39 | % | 7.18 | % | 36.60 | % | |||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | 1.76 | % | 8.17 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 44.36 | % | -1.09 | % | 6.29 | % | 31.69 | % | |||||||||||
Share Price Return | 44.47 | % | -1.07 | % | 6.31 | % | 31.78 | % |
Fund Inception: October 26, 2005
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.67%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.66% while the Fund's total gross operating expense ratio was 0.69%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P SuperComposite Aerospace & Defense Index, DJ US Aerospace and Defense Index, and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 34, 50, and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
5
Manager's Analysis
PowerShares CleantechTM Portfolio (ticker: PZD)
The PowerShares CleantechTM Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of The Cleantech IndexTM (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 30.16%. Over this same year, the Index returned 29.79%, while the NASDAQ Composite Index returned 43.32%. The Fund benefited from positive performance in the United States and in the industrials and information technology sectors. The Fund suffered from negative performance in Belgium, Spain and Canada.
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Electrical Components & Equipment | 18.2 | ||||||
Miscellaneous Manufacturing | 14.7 | ||||||
Semiconductors | 9.5 | ||||||
Electronics | 9.3 | ||||||
Environmental Control | 9.1 | ||||||
Engineering & Construction | 5.4 | ||||||
Software | 5.2 | ||||||
Energy-Alternate Sources | 5.1 | ||||||
Auto Parts & Equipment | 3.8 | ||||||
Machinery-Diversified | 3.7 | ||||||
Biotechnology | 3.4 | ||||||
Electric | 3.1 | ||||||
Telecommunications | 3.1 | ||||||
Building Materials | 2.0 | ||||||
Hand/Machine Tools | 1.4 | ||||||
Chemicals | 1.3 | ||||||
Computers | 0.8 | ||||||
Healthcare-Services | 0.6 | ||||||
Mining | 0.3 | ||||||
Money Market Fund | 0.0 | ||||||
Other | (0.0 | ) |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
First Solar, Inc. | 2.9 | ||||||
Autodesk, Inc. | 2.7 | ||||||
Johnson Controls, Inc. | 2.7 | ||||||
Vestas Wind Systems A/S | 2.7 | ||||||
Siemens AG | 2.6 | ||||||
Novozymes A/S | 2.6 | ||||||
Schneider Electric SA | 2.6 | ||||||
Corning, Inc. | 2.6 | ||||||
Roper Industries, Inc. | 2.5 | ||||||
ANSYS, Inc. | 2.4 | ||||||
Total | 26.3 |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Large-Cap Growth | 36.5 | ||||||
Mid-Cap Growth | 27.7 | ||||||
Mid-Cap Value | 19.2 | ||||||
Large-Cap Value | 7.4 | ||||||
Small-Cap Growth | 4.7 | ||||||
Small-Cap Value | 4.5 |
6
Manager's Analysis (Continued)
PowerShares CleantechTM Portfolio (ticker: PZD)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) As of April 30, 2010
Avg Ann†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg Ann†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
The Cleantech IndexTM | 29.79 | % | -2.68 | % | 0.34 | % | 1.21 | % | |||||||||||
NASDAQ Composite Index | 43.32 | % | -0.85 | % | 1.12 | % | 3.99 | % | |||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | -2.06 | % | -7.01 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 30.16 | % | -2.56 | % | 0.41 | % | 1.44 | % | |||||||||||
Share Price Return | 28.45 | % | -2.83 | % | 0.18 | % | 0.63 | % |
Fund Inception: October 24, 2006
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. The Fund is currently subject to recapture, which may result in an increased expense ratio. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.73%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.67% while the Fund's total gross operating expense ratio was 0.71% . NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The NASDAQ Composite Index and S&P 500® Index "(the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 3,087 and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
7
Manager's Analysis
PowerShares DWA Technical LeadersTM Portfolio (ticker: PDP)
The PowerShares DWA Technical LeadersTM Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Dorsey Wright Technical LeadersTM Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 51.28%. Over this same year, the Index returned 51.26%, while the S&P Citigroup Large Cap Growth Index returned 35.96%. The Fund benefited from positive performance in the industrials, consumer discretionary, and information technology sectors. The Fund suffered from negative performance in the telecommunication services sector.
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Consumer Discretionary | 24.6 | ||||||
Industrials | 18.2 | ||||||
Information Technology | 15.3 | ||||||
Financials | 14.2 | ||||||
Health Care | 10.9 | ||||||
Materials | 7.7 | ||||||
Telecommunication Services | 3.3 | ||||||
Utilities | 2.7 | ||||||
Energy | 1.9 | ||||||
Consumer Staples | 1.2 | ||||||
Money Market Fund | 0.1 | ||||||
Other | (0.1 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Large-Cap Growth | 42.1 | ||||||
Small-Cap Growth | 25.2 | ||||||
Mid-Cap Value | 17.0 | ||||||
Small-Cap Value | 10.3 | ||||||
Large-Cap Value | 4.3 | ||||||
Mid-Cap Growth | 1.1 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
Apple, Inc. | 3.8 | ||||||
American Tower Corp. | 3.3 | ||||||
Ventas, Inc. | 3.3 | ||||||
J.B. Hunt Transport Services, Inc. | 2.5 | ||||||
Priceline.com, Inc. | 2.4 | ||||||
Liberty Media Corp. | 2.1 | ||||||
Dendreon Corp. | 2.0 | ||||||
TRW Automotive Holdings Corp. | 1.9 | ||||||
Henry Schein, Inc. | 1.8 | ||||||
Precision Castparts Corp. | 1.8 | ||||||
Total | 24.9 |
8
Manager's Analysis (Continued)
PowerShares DWA Technical LeadersTM Portfolio (ticker: PDP)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) As of April 30, 2010
Avg Ann†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg Ann†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
Dorsey Wright Technical LeadersTM Index | 51.26 | % | -6.03 | % | -3.75 | % | -11.40 | % | |||||||||||
S&P Citigroup Large Cap Growth Index | 35.96 | % | -2.10 | % | -0.27 | % | -0.86 | % | |||||||||||
Russell 3000 Growth Index | 38.69 | % | -1.93 | % | -0.27 | % | -0.85 | % | |||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | -3.13 | % | -9.59 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 51.28 | % | -5.67 | % | -3.40 | % | -10.36 | % | |||||||||||
Share Price Return | 51.31 | % | -5.77 | % | -3.47 | % | -10.59 | % |
Fund Inception: March 1, 2007
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses during previous fiscal periods, absent which, performance during those fiscal periods would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. The Fund is currently subject to recapture, which may result in an increased expense ratio. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.68%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.70% whi le the Fund's total gross operating expense ratio was 0.73%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P Citigroup Large Cap Growth Index, Russell 3000 Growth Index, and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 384, 1,936, and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
9
Manager's Analysis
PowerShares Global Listed Private Equity Portfolio (ticker: PSP)
The PowerShares Global Listed Private Equity Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Global Listed Private Equity IndexSM (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 54.20%. Over this same year, the Index returned 63.97%, while the S&P Financials Index returned 51.62%. The Fund benefited from positive performance in the United States, and the industrials and information technology sectors. The Fund suffered from negative performance in Belgium, Spain and Canada. The Fund underperformed the Index due to the Fund's sampling methodology.
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Investment Companies | 46.8 | ||||||
Holding Companies-Diversified | 22.6 | ||||||
Venture Capital | 13.9 | ||||||
Diversified Financial Services | 9.4 | ||||||
Food | 3.3 | ||||||
Electric | 1.7 | ||||||
Water | 1.6 | ||||||
Media | 1.1 | ||||||
Money Market Fund | 0.1 | ||||||
Other | (0.5 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Small-Cap Growth | 35.8 | ||||||
Large-Cap Value | 32.2 | ||||||
Mid-Cap Growth | 18.6 | ||||||
Large-Cap Growth | 13.4 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
Hal Trust | 6.1 | ||||||
Leucadia National Corp. | 5.7 | ||||||
Ratos AB | 5.4 | ||||||
3i Group PLC | 5.0 | ||||||
Eurazeo | 4.1 | ||||||
Onex Corp. | 4.1 | ||||||
Wendel | 4.0 | ||||||
Jafco Co. Ltd. | 3.6 | ||||||
Ares Capital Corp. | 3.3 | ||||||
Hakon Invest AB | 3.3 | ||||||
Total | 44.6 |
10
Manager's Analysis (Continued)
PowerShares Global Listed Private Equity Portfolio (ticker: PSP)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) As of April 30, 2010
Avg Ann†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg Ann†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
Global Listed Private Equity IndexSM | 63.97 | % | -21.22 | % | -15.73 | % | -45.21 | % | |||||||||||
S&P Financials Index | 51.62 | % | -22.00 | % | -17.88 | % | -49.82 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 54.20 | % | -24.99 | % | -19.16 | % | -52.66 | % | |||||||||||
Share Price Return | 54.70 | % | -24.96 | % | -19.13 | % | -52.59 | % |
Fund Inception: October 24, 2006
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.78%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.70% while the Fund's total gross operating expense ratio was 0.72%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P Financials Index ("Benchmark Index") is an unmanaged index used as a measurement of change in stock market conditions based on the average performance of approximately 93 common stocks.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Index are based on the closest month-end to the Fund's inception date.
†† Average annualized.
11
Manager's Analysis
PowerShares Golden Dragon Halter USX China Portfolio (ticker: PGJ)
The PowerShares Golden Dragon Halter USX China Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Halter USX China IndexSM (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 44.51%. Over this same year, the Index returned 45.97%, while the MSCI China Index returned 41.40%. The Fund benefited from positive performance in the energy, information technology, and industrials sectors. The Fund did not suffer from negative performance in any of the sectors in which it was invested.
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Energy | 20.8 | ||||||
Information Technology | 18.6 | ||||||
Telecommunication Services | 15.0 | ||||||
Industrials | 12.9 | ||||||
Consumer Discretionary | 8.8 | ||||||
Materials | 7.3 | ||||||
Financials | 6.4 | ||||||
Health Care | 4.3 | ||||||
Utilities | 3.5 | ||||||
Consumer Staples | 2.4 | ||||||
Other | 0.0 |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Mid-Cap Value | 35.3 | ||||||
Small-Cap Value | 25.3 | ||||||
Large-Cap Growth | 14.8 | ||||||
Mid-Cap Growth | 11.9 | ||||||
Small-Cap Growth | 10.2 | ||||||
Large-Cap Value | 2.5 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
PetroChina Co. Ltd. | 5.9 | ||||||
China Mobile Ltd. | 5.9 | ||||||
Yanzhou Coal Mining Co. Ltd. | 5.4 | ||||||
Baidu, Inc. | 5.1 | ||||||
China Unicom Ltd. | 4.9 | ||||||
CNOOC Ltd. | 4.8 | ||||||
China Life Insurance Co. Ltd. | 4.4 | ||||||
China Petroleum and Chemical Corp. | 4.3 | ||||||
Aluminum Corp. of China Ltd. | 4.2 | ||||||
China Telecom Corp. Ltd. | 4.1 | ||||||
Total | 49.0 |
12
Manager's Analysis (Continued)
PowerShares Golden Dragon Halter USX China Portfolio (ticker: PGJ)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) As of April 30, 2010
Avg Ann†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Year | 5 Year | Avg Ann†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Halter USX China IndexSM | 45.97 | % | 6.69 | % | 15.98 | % | 12.28 | % | 86.64 | % | |||||||||||||
MSCI China Index | 41.40 | % | 8.67 | % | 23.28 | % | 20.93 | % | 179.88 | % | |||||||||||||
FTSE/Xinhua China Index | 30.82 | % | 4.54 | % | 17.46 | % | 15.54 | % | 118.69 | % | |||||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | 2.63 | % | 2.29 | % | 13.02 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | 44.51 | % | 6.17 | % | 15.13 | % | 11.61 | % | 80.73 | % | |||||||||||||
Share Price Return | 44.49 | % | 6.16 | % | 15.16 | % | 11.56 | % | 80.31 | % |
Fund Inception: December 9, 2004
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.71%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.70% while the Fund's total gross operating expense ratio was 0.71%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The MSCI China Index, FTSE/Xinhua China Index, and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 101, 20, and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
13
Manager's Analysis
PowerShares Lux Nanotech Portfolio (ticker: PXN)
The PowerShares Lux Nanotech Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Lux Nanotech IndexTM (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 36.39%. Over this same year, the Index returned 36.82%, while the S&P 500® Index returned 38.82%. The Fund benefited from positive performance in information technology, materials and health care sectors. The Fund suffered negative performance in the industrials sector.
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Chemicals | 16.1 | ||||||
Pharmaceuticals | 12.9 | ||||||
Biotechnology | 10.7 | ||||||
Electronics | 9.4 | ||||||
Electrical Components & Equipment | 8.1 | ||||||
Semiconductors | 7.9 | ||||||
Miscellaneous Manufacturing | 6.6 | ||||||
Computers | 6.1 | ||||||
Energy-Alternate Sources | 5.8 | ||||||
Software | 5.1 | ||||||
Investment Companies | 4.9 | ||||||
Commercial Services | 3.6 | ||||||
Auto Manufacturers | 3.0 | ||||||
Money Market Fund | 0.0 | ||||||
Other | (0.2 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Mid-Cap Growth | 66.4 | ||||||
Small-Cap Value | 15.8 | ||||||
Mid-Cap Value | 9.5 | ||||||
Large-Cap Growth | 4.3 | ||||||
Large-Cap Value | 4.0 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
Nanosphere, Inc. | 6.1 | ||||||
Headwaters, Inc. | 5.8 | ||||||
Symyx Technologies, Inc. | 5.4 | ||||||
Accelrys, Inc. | 5.1 | ||||||
Harris & Harris Group, Inc. | 4.9 | ||||||
NVE Corp. | 4.8 | ||||||
Veeco Instruments, Inc. | 4.7 | ||||||
Abraxis Bioscience, Inc. | 4.6 | ||||||
Flamel Technologies SA | 4.6 | ||||||
FEI Co. | 4.6 | ||||||
Total | 50.6 |
14
Manager's Analysis (Continued)
PowerShares Lux Nanotech Portfolio (ticker: PXN)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) As of April 30, 2010
Avg Ann†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg Ann†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
Lux Nanotech IndexTM | 36.82 | % | -15.96 | % | -8.70 | % | -33.66 | % | |||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | 1.76 | % | 8.17 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 36.39 | % | -16.00 | % | -8.21 | % | -32.04 | % | |||||||||||
Share Price Return | 36.08 | % | -16.18 | % | -8.26 | % | -32.22 | % |
Fund Inception: October 26, 2005
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. The Fund is currently subject to recapture, which may result in an increased expense ratio. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.89%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.70% while the Fund's total gross operating expense ratio was 0.85% . NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do no represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P 500® Index ("Benchmark Index") is an unmanaged index used as a measurement of change in stock market conditions based on the average performance of approximately 500 common stocks.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Index are based on the closest month-end to the Fund's inception date.
†† Average annualized.
15
Manager's Analysis
PowerShares NASDAQ-100 BuyWrite Portfolio (ticker: PQBW)
The PowerShares NASDAQ-100 BuyWrite Portfolio seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the CBOE NASDAQ-100 BuyWrite IndexTM (the "Index").
For the fiscal year ended April, 30 2010, the Fund returned 27.23%. Over this same year, the Index returned 28.69%, while the NASDAQ-100® Index returned 44.44%. The Fund slightly underperformed the Index due to the relatively wide option bid-ask spreads which prevailed during monthly rebalance periods.
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Computers | 24.0 | ||||||
Software | 14.2 | ||||||
Internet | 12.0 | ||||||
Telecommunications | 9.4 | ||||||
Biotechnology | 8.1 | ||||||
Semiconductors | 7.7 | ||||||
Retail | 5.6 | ||||||
Pharmaceuticals | 4.8 | ||||||
Media | 4.4 | ||||||
Healthcare-Products | 2.1 | ||||||
Commercial Services | 1.9 | ||||||
Transportation | 1.3 | ||||||
Auto Manufacturers | 1.0 | ||||||
Electronics | 1.0 | ||||||
Lodging | 0.7 | ||||||
Energy-Alternate Sources | 0.6 | ||||||
Toys/Games/Hobbies | 0.5 | ||||||
Distribution/Wholesale | 0.4 | ||||||
Chemicals | 0.4 | ||||||
Machinery-Construction & Mining | 0.3 | ||||||
Environmental Control | 0.3 | ||||||
Textiles | 0.3 | ||||||
Engineering & Construction | 0.2 | ||||||
Money Market Fund | 0.0 | ||||||
Other | (1.2 | ) |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
Apple, Inc. | 18.1 | ||||||
Microsoft Corp. | 5.1 | ||||||
QUALCOMM, Inc. | 4.3 | ||||||
Google, Inc. | 4.3 | ||||||
Cisco Systems, Inc. | 3.0 | ||||||
Oracle Corp. | 3.0 | ||||||
Intel Corp. | 2.4 | ||||||
Teva Pharmaceutical Industries Ltd. | 2.4 | ||||||
Amazon.com, Inc. | 2.2 | ||||||
Research In Motion Ltd. | 2.2 | ||||||
Total | 47.0 |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Mid-Cap Value | 71.3 | ||||||
Large-Cap Growth | 17.2 | ||||||
Small-Cap Value | 8.9 | ||||||
Small-Cap Growth | 2.6 |
16
Manager's Analysis (Continued)
PowerShares NASDAQ-100 BuyWrite Portfolio (ticker: PQBW)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) As of April 30, 2010
Avg Ann†† | Fund Inception† | ||||||||||||||
1 Year | Avg Ann†† | Cumulative | |||||||||||||
Index | |||||||||||||||
CBOE Nasdaq-100 BuyWrite IndexTM | 28.69 | % | -0.28 | % | -0.53 | % | |||||||||
NASDAQ-100® Index | 44.44 | % | -0.20 | % | -0.37 | % | |||||||||
S&P 500® Index | 38.82 | % | -6.08 | % | -11.32 | % | |||||||||
Fund | |||||||||||||||
NAV Return | 27.23 | % | -1.65 | % | -3.09 | % | |||||||||
Share Price Return | 27.28 | % | -1.73 | % | -3.23 | % |
Fund Inception: June 12, 2008
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. According to the Fund's current prospectus, the expense ratio of 0.75% is expressed as a unitary fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The NASDAQ-100® Index and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 100 and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
17
Manager's Analysis
PowerShares S&P 500 BuyWrite Portfolio (ticker: PBP)
The PowerShares S&P 500 BuyWrite Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) CBOE S&P 500 BuyWrite Index (the "Index").
For the fiscal year ended April, 30 2010, the Fund returned 24.48%. Over this same year, the Index returned 25.62%, while the S&P 500® Index returned 38.82%. The Fund slightly underperformed the Index due to the relatively wide option bid-ask spreads which prevailed during monthly rebalance periods.
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Information Technology | 19.1 | ||||||
Financials | 16.7 | ||||||
Health Care | 11.7 | ||||||
Energy | 11.3 | ||||||
Consumer Staples | 11.0 | ||||||
Industrials | 10.9 | ||||||
Consumer Discretionary | 10.7 | ||||||
Utilities | 3.5 | ||||||
Materials | 3.5 | ||||||
Telecommunication Services | 2.7 | ||||||
Other | (1.1 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Mid-Cap Value | 45.0 | ||||||
Small-Cap Value | 41.3 | ||||||
Large-Cap Growth | 7.5 | ||||||
Small-Cap Growth | 6.0 | ||||||
Large-Cap Value | 0.1 | ||||||
Mid-Cap Growth | 0.1 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
Exxon Mobil Corp. | 3.0 | ||||||
Apple, Inc. | 2.2 | ||||||
Microsoft Corp. | 2.2 | ||||||
General Electric Co. | 1.9 | ||||||
Procter & Gamble Co. (The) | 1.7 | ||||||
Bank of America Corp. | 1.7 | ||||||
Johnson & Johnson | 1.7 | ||||||
Wells Fargo & Co. | 1.6 | ||||||
JPMorgan Chase & Co. | 1.6 | ||||||
International Business Machines Corp. | 1.6 | ||||||
Total | 19.2 |
18
Manager's Analysis (Continued)
PowerShares S&P 500 BuyWrite Portfolio (ticker: PBP)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) As of April 30, 2010
Avg Ann†† | Fund Inception† | ||||||||||||||
1 Year | Avg Ann†† | Cumulative | |||||||||||||
Index | |||||||||||||||
CBOE S&P 500 BuyWrite Index | 25.62 | % | -3.93 | % | -9.03 | % | |||||||||
S&P 500® Index | 38.82 | % | -6.58 | % | -14.69 | % | |||||||||
Fund | |||||||||||||||
NAV Return | 24.48 | % | -4.76 | % | -10.87 | % | |||||||||
Share Price Return | 24.11 | % | -4.75 | % | -10.86 | % |
Fund Inception: December 20, 2007
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. According to the Fund's current prospectus, the expense ratio of 0.75% is expressed as a unitary fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P 500® Index ("Benchmark Index") is an unmanaged index used as a measurement of change in stock market conditions based on the average performance of approximately 500 common stocks.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Index are based on the closest month-end to the Fund's inception date.
†† Average annualized.
19
Manager's Analysis
PowerShares Value Line Industry Rotation Portfolio (ticker: PYH)
The PowerShares Value Line Industry Rotation Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Value Line Industry Rotation Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 31.03%. Over this same year, the Index returned 30.51%, while the S&P Citigroup Large Cap Growth Index returned 35.96%. The Fund benefited from positive performance in consumer discretionary, consumer staples and information technology sectors. The Fund suffered negative performance in the industrials sector.
20
Manager's Analysis (Continued)
PowerShares Value Line Industry Rotation Portfolio (ticker: PYH)
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Retail | 9.1 | ||||||
Media | 8.1 | ||||||
Pharmaceuticals | 6.5 | ||||||
Software | 5.5 | ||||||
Commercial Services | 5.4 | ||||||
Insurance | 5.1 | ||||||
Computers | 4.9 | ||||||
Apparel | 4.7 | ||||||
Semiconductors | 4.4 | ||||||
Chemicals | 4.3 | ||||||
Auto Parts & Equipment | 3.0 | ||||||
Household Products/Wares | 2.9 | ||||||
Mining | 2.8 | ||||||
Beverages | 2.8 | ||||||
Investment Companies | 2.7 | ||||||
Healthcare-Services | 2.6 | ||||||
Cosmetics/Personal Care | 2.5 | ||||||
Healthcare-Products | 2.4 | ||||||
Coal | 2.4 | ||||||
Agriculture | 2.3 | ||||||
Oil & Gas | 1.4 | ||||||
Transportation | 1.4 | ||||||
Internet | 1.4 | ||||||
Forest Products & Paper | 1.4 | ||||||
Airlines | 1.3 | ||||||
Telecommunications | 1.3 | ||||||
Electronics | 1.3 | ||||||
Pipelines | 1.3 | ||||||
Home Furnishings | 1.3 | ||||||
Electric | 1.2 | ||||||
Miscellaneous Manufacturing | 1.2 | ||||||
Food | 1.2 | ||||||
Money Market Fund | 0.1 | ||||||
Other | (0.2 | ) |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
Steven Madden Ltd. | 1.7 | ||||||
Deckers Outdoor Corp. | 1.6 | ||||||
TRW Automotive Holdings Corp. | 1.6 | ||||||
Alliance Data Systems Corp. | 1.6 | ||||||
American Greetings Corp. | 1.6 | ||||||
Silver Wheaton Corp. | 1.6 | ||||||
Ashland, Inc. | 1.6 | ||||||
Teradyne, Inc. | 1.5 | ||||||
Herbalife Ltd. | 1.5 | ||||||
Salesforce.com, Inc. | 1.5 | ||||||
Total | 15.8 |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Mid-Cap Growth | 24.5 | ||||||
Large-Cap Growth | 23.6 | ||||||
Small-Cap Growth | 17.2 | ||||||
Mid-Cap Value | 14.1 | ||||||
Large-Cap Value | 11.7 | ||||||
Small-Cap Value | 8.9 |
21
Manager's Analysis (Continued)
PowerShares Value Line Industry Rotation Portfolio (ticker: PYH)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) As of April 30, 2010
Avg Ann†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg Ann†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
Value Line Industry Rotation Index | 30.51 | % | -10.20 | % | -6.12 | % | -19.38 | % | |||||||||||
S&P 500 Citigroup Large Cap Growth Index | 35.96 | % | -2.10 | % | -0.44 | % | -1.50 | % | |||||||||||
Russell 3000 Growth Index | 38.69 | % | -1.93 | % | 0.04 | % | 0.15 | % | |||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | -2.64 | % | -8.75 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 31.03 | % | -9.90 | % | -5.84 | % | -18.56 | % | |||||||||||
Share Price Return | 31.11 | % | -9.90 | % | -5.84 | % | -18.56 | % |
Fund Inception: December 1, 2006
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.95%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.70% while the Fund's total gross operating expense ratio was 1.09%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P 500 Citigroup Large Cap Growth Index, Russell 3000 Growth Index, and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 384, 1,936, and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
22
This page intentionally left blank
Manager's Analysis
PowerShares Value Line TimelinessTM Select Portfolio (ticker: PIV)
The PowerShares Value Line TimelinessTM Select Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Value Line Timeliness(TM) Select Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 27.63%. Over this same year, the Index returned 27.48%, while the S&P Citigroup Large Cap Growth Index returned 35.96%. The Fund benefited from positive performance in consumer discretionary, health care and information technology sectors. The Fund suffered negative performance in industrials and energy sectors.
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Consumer Discretionary | 35.1 | ||||||
Information Technology | 29.5 | ||||||
Health Care | 23.6 | ||||||
Consumer Staples | 6.0 | ||||||
Financials | 3.8 | ||||||
Telecommunication Services | 2.0 | ||||||
Money Market Fund | 0.1 | ||||||
Other | (0.1 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Large-Cap Growth | 34.9 | ||||||
Mid-Cap Growth | 30.8 | ||||||
Mid-Cap Value | 19.4 | ||||||
Small-Cap Growth | 7.5 | ||||||
Small-Cap Value | 3.8 | ||||||
Large-Cap Value | 3.6 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
Cirrus Logic, Inc. | 3.2 | ||||||
Netflix, Inc. | 2.7 | ||||||
Deckers Outdoor Corp. | 2.5 | ||||||
Perrigo Co. | 2.2 | ||||||
Salesforce.com, Inc. | 2.2 | ||||||
Boston Beer Co., Inc. | 2.2 | ||||||
CarMax, Inc. | 2.1 | ||||||
Viacom, Inc. | 2.1 | ||||||
Odyssey HealthCare, Inc. | 2.1 | ||||||
Urban Outfitters, Inc. | 2.1 | ||||||
Total | 23.4 |
24
Manager's Analysis (Continued)
PowerShares Value Line TimelinessTM Select Portfolio (ticker: PIV)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) As of April 30, 2010
Avg Ann†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg Ann†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
Value Line TimelinessTM Select Index | 27.48 | % | -11.46 | % | -5.39 | % | -21.61 | % | |||||||||||
S&P Citigroup Large Cap Growth Index | 35.96 | % | -2.10 | % | 1.91 | % | 8.72 | % | |||||||||||
Russell 3000 Growth Index | 38.69 | % | -1.93 | % | 1.97 | % | 8.98 | % | |||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | 0.94 | % | 4.23 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 27.63 | % | -11.32 | % | -5.21 | % | -20.97 | % | |||||||||||
Share Price Return | 27.63 | % | -11.32 | % | -5.31 | % | -21.32 | % |
Fund Inception: December 6, 2005
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.72%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.70% while the Fund's total gross operating expense ratio was 0.80%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P Citigroup Large Cap Growth Index, Russell 3000 Growth Index, and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 384, 1,936, and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
25
Manager's Analysis
PowerShares Water Resources Portfolio (ticker: PHO)
The PowerShares Water Resources Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Palisades Water Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 29.48%. Over this same year, the Index returned 29.31%, while the ISE Water Index returned 30.75%. The Fund benefited from positive performance in the industrials sector.
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Miscellaneous Manufacturing | 18.2 | ||||||
Machinery-Diversified | 17.8 | ||||||
Engineering & Construction | 15.5 | ||||||
Electronics | 12.3 | ||||||
Water | 11.8 | ||||||
Environmental Control | 10.9 | ||||||
Metal Fabricate/Hardware | 9.9 | ||||||
Hand/Machine Tools | 3.6 | ||||||
Money Market Fund | 0.0 | ||||||
Other | (0.0 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Mid-Cap Growth | 37.2 | ||||||
Large-Cap Growth | 29.5 | ||||||
Large-Cap Value | 10.7 | ||||||
Small-Cap Growth | 10.3 | ||||||
Small-Cap Value | 7.5 | ||||||
Mid-Cap Value | 4.8 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
Tetra Tech, Inc. | 5.1 | ||||||
URS Corp. | 5.0 | ||||||
Aecom Technology Corp. | 4.9 | ||||||
Valmont Industries, Inc. | 4.9 | ||||||
Danaher Corp. | 4.7 | ||||||
Itron, Inc. | 4.7 | ||||||
Veolia Environnement | 4.4 | ||||||
Ameron International Corp. | 4.3 | ||||||
Roper Industries, Inc. | 4.3 | ||||||
Badger Meter, Inc. | 4.2 | ||||||
Total | 46.5 |
26
Manager's Analysis (Continued)
PowerShares Water Resources Portfolio (ticker: PHO)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) As of April 30, 2010
Avg Ann†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg Ann†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
Palisades Water Index | 29.31 | % | 0.61 | % | 6.17 | % | 30.11 | % | |||||||||||
ISE Water Index | 30.75 | % | 1.09 | % | 7.13 | % | 35.53 | % | |||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | 0.94 | % | 4.23 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 29.48 | % | -1.55 | % | 4.44 | % | 21.06 | % | |||||||||||
Share Price Return | 29.67 | % | -1.55 | % | 4.18 | % | 19.73 | % |
Fund Inception: December 6, 2005
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses during previous fiscal periods, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.64%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.64% while the Fund's total gross operating expense ratio was 0.64%. NAV and Share Price returns assume that dividends and capit al gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The ISE Water Index and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 36 and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
27
Manager's Analysis
PowerShares WilderHill Clean Energy Portfolio (ticker: PBW)
The PowerShares Wilderhill Clean Energy Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the WilderHill Clean Energy Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 12.07%. Over this same year, the Index returned 12.40%, while the NASDAQ Composite Index returned 43.32%. The Fund benefited from positive performance in China and the information technology and utilities sectors. The Fund suffered from negative performance in Canada and the industrials sector.
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Electrical Components & Equipment | 26.4 | ||||||
Semiconductors | 19.7 | ||||||
Energy-Alternate Sources | 13.0 | ||||||
Electric | 10.5 | ||||||
Chemicals | 9.2 | ||||||
Computers | 4.8 | ||||||
Auto Parts & Equipment | 3.8 | ||||||
Electronics | 3.0 | ||||||
Food | 2.5 | ||||||
Miscellaneous Manufacturing | 2.4 | ||||||
Commercial Services | 2.3 | ||||||
Building Materials | 2.0 | ||||||
Machinery-Diversified | 0.4 | ||||||
Money Market Fund | 0.0 | ||||||
Other | (0.0 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Mid-Cap Growth | 56.9 | ||||||
Large-Cap Growth | 23.0 | ||||||
Large-Cap Value | 6.0 | ||||||
Small-Cap Growth | 5.5 | ||||||
Mid-Cap Value | 4.6 | ||||||
Small-Cap Value | 4.0 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
Renesola Ltd. | 3.1 | ||||||
Rubicon Technology, Inc. | 3.1 | ||||||
First Solar, Inc. | 2.9 | ||||||
JA Solar Holdings Co. Ltd. | 2.9 | ||||||
Ormat Technologies, Inc. | 2.7 | ||||||
Trina Solar Ltd. | 2.6 | ||||||
Universal Display Corp. | 2.6 | ||||||
Cosan Ltd. | 2.5 | ||||||
Maxwell Technologies, Inc. | 2.5 | ||||||
Itron, Inc. | 2.5 | ||||||
Total | 27.4 |
28
Manager's Analysis (Continued)
PowerShares WilderHill Clean Energy Portfolio (ticker: PBW)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) As of April 30, 2010
Avg Ann†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Year | 5 Year | Avg Ann†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
WilderHill Clean Energy Index | 12.40 | % | -20.30 | % | -5.74 | % | -8.99 | % | -38.48 | % | |||||||||||||
NASDAQ Composite Index | 43.32 | % | -0.85 | % | 5.07 | % | 3.58 | % | 19.96 | % | |||||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | 2.63 | % | 1.81 | % | 9.73 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | 12.07 | % | -19.35 | % | -4.63 | % | -8.01 | % | -35.00 | % | |||||||||||||
Share Price Return | 12.46 | % | -19.40 | % | -4.62 | % | -8.02 | % | -35.02 | % |
Fund Inception: March 3, 2005
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.69%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.70% while the Fund's total gross operating expense ratio was 0.70%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The NASDAQ Composite Index and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 3,087 and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
29
Manager's Analysis
PowerShares WilderHill Progressive Energy Portfolio (ticker: PUW)
The PowerShares Wilderhill Progressive Energy Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the WilderHill Progressive Energy Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 45.96%. Over this same year, the Index returned 45.19%, while the NASDAQ Composite Index returned 43.32%. The Fund benefited from positive performance in the United States and the industrials and energy sectors. The Fund suffered from negative performance in Spain and China.
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Electrical Components & Equipment | 14.1 | ||||||
Oil & Gas | 12.7 | ||||||
Miscellaneous Manufacturing | 10.0 | ||||||
Electric | 9.9 | ||||||
Auto Parts & Equipment | 9.8 | ||||||
Chemicals | 7.1 | ||||||
Engineering & Construction | 4.8 | ||||||
Mining | 4.6 | ||||||
Energy-Alternate Sources | 4.5 | ||||||
Electronics | 4.2 | ||||||
Environmental Control | 3.4 | ||||||
Building Materials | 3.2 | ||||||
Telecommunications | 2.6 | ||||||
Agriculture | 2.6 | ||||||
Semiconductors | 2.2 | ||||||
Hand/Machine Tools | 2.1 | ||||||
Computers | 2.1 | ||||||
Money Market Fund | 0.1 | ||||||
Other | (0.0 | ) |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
Owens Corning | 3.2 | ||||||
Tenneco, Inc. | 2.8 | ||||||
GrafTech International Ltd. | 2.8 | ||||||
Sasol Ltd. | 2.8 | ||||||
Questar Corp. | 2.6 | ||||||
Corning, Inc. | 2.6 | ||||||
Andersons, Inc. (The) | 2.6 | ||||||
Rockwood Holdings, Inc. | 2.5 | ||||||
USEC, Inc. | 2.5 | ||||||
Hexcel Corp. | 2.5 | ||||||
Total | 26.9 |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Mid-Cap Growth | 31.0 | ||||||
Mid-Cap Value | 18.3 | ||||||
Large-Cap Value | 15.8 | ||||||
Small-Cap Value | 15.5 | ||||||
Large-Cap Growth | 10.0 | ||||||
Small-Cap Growth | 9.4 |
30
Manager's Analysis (Continued)
PowerShares WilderHill Progressive Energy Portfolio (ticker: PUW)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) As of April 30, 2010
Avg Ann†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg Ann†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
WilderHill Progressive Energy Index | 45.19 | % | -4.18 | % | 0.26 | % | 0.92 | % | |||||||||||
NASDAQ Composite Index | 43.32 | % | -0.85 | % | 1.12 | % | 3.99 | % | |||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | -2.06 | % | -7.01 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 45.96 | % | -3.70 | % | 0.76 | % | 2.71 | % | |||||||||||
Share Price Return | 45.96 | % | -3.71 | % | 0.77 | % | 2.75 | % |
Fund Inception: October 24, 2006
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.86%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.70% while the Fund's total gross operating expense ratio was 0.84%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The NASDAQ Composite Index and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 3,087 and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
31
Frequency Distribution of Discounts & Premiums
Since Inception through April 30, 2010
Closing Price Above NAV (bps) | |||||||||||||||||||||||||||||||||||||||
Ticker | Fund Name | Inception | Trading Days | 0-24 | 25-49 | 50-99 | 100-149 | 150-199 | 200+ | ||||||||||||||||||||||||||||||
PPA | PowerShares Aerospace & Defense Portfolio | 10/26/05 | 1135 | 401 | 15 | 2 | 1 | 0 | 3 | ||||||||||||||||||||||||||||||
PZD | PowerShares CleantechTM Portfolio | 10/24/06 | 885 | 224 | 87 | 91 | 24 | 4 | 3 | ||||||||||||||||||||||||||||||
PDP | PowerShares DWA Technical LeadersTM Portfolio | 3/1/07 | 799 | 279 | 13 | 8 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||
PSP | PowerShares Global Listed Private Equity Portfolio | 10/24/06 | 885 | 290 | 84 | 79 | 19 | 9 | 5 | ||||||||||||||||||||||||||||||
PGJ | PowerShares Golden Dragon Halter USX China Portfolio | 12/9/04 | 1357 | 562 | 138 | 21 | 2 | 0 | 0 | ||||||||||||||||||||||||||||||
PXN | PowerShares Lux Nanotech Portfolio | 10/26/05 | 1135 | 361 | 70 | 21 | 5 | 1 | 1 | ||||||||||||||||||||||||||||||
PQBW | PowerShares NASDAQ-100 BuyWrite Portfolio | 6/12/08 | 441 | 82 | 73 | 66 | 16 | 14 | 48 | ||||||||||||||||||||||||||||||
PBP | PowerShares S&P 500 BuyWrite Portfolio | 12/20/07 | 593 | 198 | 108 | 83 | 19 | 7 | 13 | ||||||||||||||||||||||||||||||
PYH | PowerShares Value Line Industry Rotation Portfolio | 12/1/06 | 858 | 268 | 11 | 6 | 3 | 0 | 1 | ||||||||||||||||||||||||||||||
PIV | PowerShares Value Line TimelinessTM Select Portfolio | 12/6/05 | 1107 | 376 | 32 | 5 | 2 | 2 | 1 | ||||||||||||||||||||||||||||||
PHO | PowerShares Water Resources Portfolio | 12/6/05 | 1107 | 438 | 97 | 19 | 1 | 0 | 0 | ||||||||||||||||||||||||||||||
PBW | PowerShares WilderHill Clean Energy Portfolio | 3/3/05 | 1300 | 533 | 126 | 25 | 6 | 0 | 0 | ||||||||||||||||||||||||||||||
PUW | PowerShares WilderHill Progressive Energy Portfolio | 10/24/06 | 885 | 295 | 23 | 5 | 0 | 0 | 0 |
32
Closing Price Below NAV (bps) | |||||||||||||||||||||||||||
Ticker | -0-24 | -25-49 | -50-99 | -100-149 | -150-199 | -200+ | |||||||||||||||||||||
PPA | 689 | 14 | 9 | 0 | 0 | 1 | |||||||||||||||||||||
PZD | 346 | 53 | 39 | 10 | 1 | 3 | |||||||||||||||||||||
PDP | 467 | 24 | 8 | 0 | 0 | 0 | |||||||||||||||||||||
PSP | 314 | 41 | 31 | 13 | 0 | 0 | |||||||||||||||||||||
PGJ | 541 | 76 | 13 | 3 | 0 | 1 | |||||||||||||||||||||
PXN | 578 | 78 | 15 | 3 | 1 | 1 | |||||||||||||||||||||
PQBW | 86 | 31 | 14 | 1 | 5 | 5 | |||||||||||||||||||||
PBP | 146 | 10 | 7 | 0 | 1 | 1 | |||||||||||||||||||||
PYH | 552 | 14 | 3 | 0 | 0 | 0 | |||||||||||||||||||||
PIV | 671 | 13 | 3 | 0 | 1 | 1 | |||||||||||||||||||||
PHO | 500 | 38 | 13 | 1 | 0 | 0 | |||||||||||||||||||||
PBW | 505 | 88 | 14 | 1 | 1 | 1 | |||||||||||||||||||||
PUW | 538 | 21 | 3 | 0 | 0 | 0 |
33
Fees and Expenses
As a shareholder of a Fund of the PowerShares Exchange-Traded Fund Trust, you incur advisory fees and other Fund expenses fee. The expense examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds.
The example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended April 30, 2010.
Actual Expenses
The first line in the following table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading "Expenses Paid During the Six-Month Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line in the following table provides information about hypothetical account values and hypothetical expenses based on each Fund's actual expense ratio and an assumed annualized rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs such as sales charges and brokerage commissions. Therefore the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning Account Value November 1, 2009 | Ending Account Value April 30, 2010 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period (1) | ||||||||||||||||
PowerShares Aerospace & Defense Portfolio Actual | $ | 1,000.00 | $ | 1,243.82 | 0.66 | % | $ | 3.67 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.52 | 0.66 | % | $ | 3.31 | |||||||||||
PowerShares CleantechTM Portfolio Actual | $ | 1,000.00 | $ | 1,116.68 | 0.68 | % | $ | 3.57 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.42 | 0.68 | % | $ | 3.41 | |||||||||||
PowerShares DWA Technical LeadersTM Portfolio Actual | $ | 1,000.00 | $ | 1,263.14 | 0.70 | % | $ | 3.93 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.32 | 0.70 | % | $ | 3.51 | |||||||||||
PowerShares Global Listed Private Equity Portfolio Actual | $ | 1,000.00 | $ | 1,157.10 | 0.70 | % | $ | 3.74 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.32 | 0.70 | % | $ | 3.51 | |||||||||||
PowerShares Golden Dragon Halter USX China Portfolio Actual | $ | 1,000.00 | $ | 1,138.94 | 0.70 | % | $ | 3.71 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.32 | 0.70 | % | $ | 3.51 |
34
Fees and Expenses (Continued)
Beginning Account Value November 1, 2009 | Ending Account Value April 30, 2010 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period (1) | ||||||||||||||||
PowerShares Lux Nanotech Portfolio Actual | $ | 1,000.00 | $ | 1,078.20 | 0.70 | % | $ | 3.61 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.32 | 0.70 | % | $ | 3.51 | |||||||||||
PowerShares NASDAQ-100 BuyWrite Portfolio Actual | $ | 1,000.00 | $ | 1,100.16 | 0.75 | % | $ | 3.91 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.08 | 0.75 | % | $ | 3.76 | |||||||||||
PowerShares S&P 500 BuyWrite Portfolio Actual | $ | 1,000.00 | $ | 1,089.92 | 0.75 | % | $ | 3.89 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.08 | 0.75 | % | $ | 3.76 | |||||||||||
PowerShares Value Line Industry Rotation Portfolio Actual | $ | 1,000.00 | $ | 1,216.91 | 0.70 | % | $ | 3.85 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.32 | 0.70 | % | $ | 3.51 | |||||||||||
PowerShares Value Line TimelinessTM Select Portfolio Actual | $ | 1,000.00 | $ | 1,194.71 | 0.70 | % | $ | 3.81 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.32 | 0.70 | % | $ | 3.51 | |||||||||||
PowerShares Water Resources Portfolio Actual | $ | 1,000.00 | $ | 1,153.95 | 0.63 | % | $ | 3.36 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.67 | 0.63 | % | $ | 3.16 | |||||||||||
PowerShares WilderHill Clean Energy Portfolio Actual | $ | 1,000.00 | $ | 1,044.37 | 0.70 | % | $ | 3.55 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.32 | 0.70 | % | $ | 3.51 | |||||||||||
PowerShares WilderHill Progressive Energy Portfolio Actual | $ | 1,000.00 | $ | 1,186.70 | 0.70 | % | $ | 3.80 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.32 | 0.70 | % | $ | 3.51 |
(1) Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six months ended April 30, 2010. Expenses are calculated by multiplying the Fund's annualized expense ratio by the average account value for the period; then multiplying the result by 181 and then dividing the result by 365. Expense ratios for the most recent half-year may differ from expense ratios based on the one year data in the Financial Highlights.
35
Schedule of Investments
PowerShares Aerospace & Defense Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks—100.1% | |||||||||||
Aerospace/Defense—54.0% | |||||||||||
26,569 | AAR Corp.* | $ | 647,752 | ||||||||
14,739 | Aerovironment, Inc.* | 385,867 | |||||||||
22,478 | Alliant Techsystems, Inc.* | 1,818,695 | |||||||||
14,878 | Argon ST, Inc.* | 386,828 | |||||||||
122,012 | Boeing Co. (The) | 8,837,329 | |||||||||
18,199 | Cubic Corp. | 679,005 | |||||||||
7,114 | Ducommun, Inc. | 162,839 | |||||||||
28,694 | Elbit Systems Ltd. (Israel) | 1,768,985 | |||||||||
20,308 | Esterline Technologies Corp.* | 1,132,780 | |||||||||
39,828 | GenCorp, Inc.* | 247,730 | |||||||||
100,444 | General Dynamics Corp. | 7,669,904 | |||||||||
76,116 | Goodrich Corp. | 5,646,285 | |||||||||
10,809 | Kratos Defense & Security Solutions, Inc.* | 154,028 | |||||||||
57,954 | L-3 Communications Holdings, Inc. | 5,422,756 | |||||||||
98,080 | Lockheed Martin Corp. | 8,326,011 | |||||||||
30,891 | Moog, Inc., Class A* | 1,148,219 | |||||||||
92,776 | Northrop Grumman Corp. | 6,292,996 | |||||||||
38,777 | Orbital Sciences Corp.* | 712,721 | |||||||||
106,122 | Raytheon Co. | 6,186,913 | |||||||||
85,800 | Rockwell Collins, Inc. | 5,577,000 | |||||||||
24,652 | Teledyne Technologies, Inc.* | 1,074,827 | |||||||||
11,348 | Triumph Group, Inc. | 880,151 | |||||||||
120,308 | United Technologies Corp. | 9,017,085 | |||||||||
74,176,706 | |||||||||||
Auto Manufacturers—1.9% | |||||||||||
47,796 | Force Protection, Inc.* | 255,708 | |||||||||
60,953 | Oshkosh Corp.* | 2,354,005 | |||||||||
2,609,713 | |||||||||||
Commercial Services—3.9% | |||||||||||
38,321 | DynCorp International, Inc., Class A* | 659,121 | |||||||||
269,690 | SAIC, Inc.* | 4,695,303 | |||||||||
5,354,424 | |||||||||||
Computers—5.6% | |||||||||||
20,520 | CACI International, Inc., Class A* | 973,264 | |||||||||
99,024 | Computer Sciences Corp.* | 5,187,867 | |||||||||
11,842 | Integral Systems, Inc.* | 103,262 | |||||||||
16,043 | Mercury Computer Systems, Inc.* | 206,313 | |||||||||
9,184 | NCI, Inc., Class A* | 260,917 | |||||||||
38,644 | SRA International, Inc., Class A* | 891,904 | |||||||||
7,623,527 | |||||||||||
Electronics—4.0% | |||||||||||
6,127 | American Science & Engineering, Inc. | 460,444 | |||||||||
60,970 | Cogent, Inc.* | 631,040 | |||||||||
104,134 | FLIR Systems, Inc.* | 3,185,459 | |||||||||
23,486 | ICx Technologies, Inc.* | 165,576 | |||||||||
62,817 | L-1 Identity Solutions, Inc.* | 544,624 | |||||||||
12,101 | OSI Systems, Inc.* | 315,110 | |||||||||
42,521 | Taser International, Inc.* | 201,124 | |||||||||
5,503,377 |
Number of Shares | Value | ||||||||||
Common Stocks (Continued) | |||||||||||
Engineering & Construction—2.6% | |||||||||||
16,394 | Stanley, Inc.* | $ | 518,542 | ||||||||
57,194 | URS Corp.* | 2,936,912 | |||||||||
3,522 | VSE Corp. | 141,549 | |||||||||
3,597,003 | |||||||||||
Metal Fabricate/Hardware—4.8% | |||||||||||
10,827 | Ladish Co., Inc.* | 297,634 | |||||||||
49,110 | Precision Castparts Corp. | 6,302,778 | |||||||||
6,600,412 | |||||||||||
Miscellaneous Manufacturing—14.4% | |||||||||||
17,297 | Ceradyne, Inc.* | 383,994 | |||||||||
198,564 | Honeywell International, Inc. | 9,425,833 | |||||||||
102,462 | ITT Corp. | 5,693,813 | |||||||||
185,676 | Textron, Inc. | 4,240,840 | |||||||||
19,744,480 | |||||||||||
Packaging & Containers—2.5% | |||||||||||
64,098 | Ball Corp. | 3,410,655 | |||||||||
Software—0.8% | |||||||||||
24,508 | ManTech International Corp., Class A* | 1,103,595 | |||||||||
Telecommunications—5.6% | |||||||||||
9,058 | Applied Signal Technology, Inc. | 169,294 | |||||||||
19,249 | Comtech Telecommunications Corp.* | 601,339 | |||||||||
30,815 | DigitalGlobe, Inc.* | 818,447 | |||||||||
10,397 | EMS Technologies, Inc.* | 165,208 | |||||||||
14,368 | GeoEye, Inc.* | 409,488 | |||||||||
89,136 | Harris Corp. | 4,588,721 | |||||||||
25,893 | ViaSat, Inc.* | 917,907 | |||||||||
7,670,404 | |||||||||||
Total Common Stocks (Cost $159,525,596) | 137,394,296 | ||||||||||
Money Market Fund—0.0% | |||||||||||
53,015 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $53,015) | 53,015 | |||||||||
Total Investments (Cost $159,578,611)—100.1% | 137,447,311 | ||||||||||
Liabilities in excess of other assets—(0.1%) | (109,761 | ) | |||||||||
Net Assets—100.0% | $ | 137,337,550 |
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
36
Schedule of Investments
PowerShares CleantechTM Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—99.8% | |||||||||||
Auto Parts & Equipment—3.8% | |||||||||||
34,862 | Fuel Systems Solutions, Inc.* | $ | 1,097,107 | ||||||||
127,595 | Johnson Controls, Inc. | 4,285,916 | |||||||||
40,247 | Westport Innovations, Inc. (Canada)* | 770,886 | |||||||||
6,153,909 | |||||||||||
Biotechnology—3.4% | |||||||||||
56,193 | Martek Biosciences Corp.* | 1,237,932 | |||||||||
34,572 | Novozymes A/S, Class B (Denmark) | 4,151,159 | |||||||||
5,389,091 | |||||||||||
Building Materials—2.0% | |||||||||||
252,759 | Kingspan Group PLC (Ireland)* | 2,361,067 | |||||||||
29,622 | WaterFurnace Renewable Energy, Inc. (Canada) | 862,763 | |||||||||
3,223,830 | |||||||||||
Chemicals—1.3% | |||||||||||
1,382 | Gurit Holding AG (Switzerland) | 764,074 | |||||||||
145,358 | Plant Health Care PLC (United Kingdom)* | 498,648 | |||||||||
80,678 | Zoltek Cos., Inc.* | 793,872 | |||||||||
2,056,594 | |||||||||||
Computers—0.8% | |||||||||||
44,665 | Telvent GIT SA (Spain)* | 1,290,819 | |||||||||
Electric—3.1% | |||||||||||
20,182,000 | Energy Development Corp. (Philippines) | 2,420,262 | |||||||||
26,602 | EnerNOC, Inc.* | 773,586 | |||||||||
56,168 | Ormat Technologies, Inc. | 1,789,512 | |||||||||
4,983,360 | |||||||||||
Electrical Components & Equipment—18.2% | |||||||||||
26,076 | A123 Systems, Inc.* | 324,907 | |||||||||
57,555 | American Superconductor Corp.* | 1,679,455 | |||||||||
1,105,095 | China High Speed Transmission Equipment Group Co. Ltd. (China) | 2,619,032 | |||||||||
404,156 | Chloride Group PLC (United Kingdom) | 1,851,412 | |||||||||
74,655 | EnerSys* | 1,932,071 | |||||||||
213,056 | Gamesa Corp. Tecnologica SA (Spain) | 2,614,470 | |||||||||
45,369 | Saft Groupe SA (France) | 1,645,808 | |||||||||
36,465 | Schneider Electric SA (France) | 4,134,217 | |||||||||
30,300 | SMA Solar Technology AG (Germany) | 3,668,764 | |||||||||
118,152 | SunPower Corp., Class A* | 1,955,416 | |||||||||
177,063 | Suntech Power Holdings Co. Ltd. ADR (China)* | 2,408,057 | |||||||||
70,041 | Vestas Wind Systems A/S (Denmark)* | 4,268,082 | |||||||||
29,101,691 | |||||||||||
Electronics—9.3% | |||||||||||
26,832 | Badger Meter, Inc. | 1,109,772 | |||||||||
24,432 | Dionex Corp.* | 1,992,918 | |||||||||
61,500 | Horiba Ltd. (Japan) | 1,813,575 | |||||||||
34,197 | Itron, Inc.* | 2,722,423 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
27,716 | Roth & Rau AG (Germany)* | $ | 906,124 | ||||||||
105,131 | Trimble Navigation Ltd.* | 3,438,835 | |||||||||
21,427 | Vaisala Oyj, Class A (Finland) | 631,768 | |||||||||
69,130 | Woodward Governor Co. | 2,215,617 | |||||||||
14,831,032 | |||||||||||
Energy - Alternate Sources—5.1% | |||||||||||
32,366 | First Solar, Inc.* | 4,646,139 | |||||||||
901,594 | Iberdrola Renovables SA (Spain) | 3,490,592 | |||||||||
8,136,731 | |||||||||||
Engineering & Construction—5.4% | |||||||||||
194,695 | ABB Ltd. (Switzerland)* | 3,728,134 | |||||||||
103,117 | Arcadis NV (Netherlands) | 2,226,866 | |||||||||
43,338 | Grontmij NV CVA (Netherlands) | 1,007,360 | |||||||||
69,623 | Insituform Technologies, Inc., Class A* | 1,668,863 | |||||||||
8,631,223 | |||||||||||
Environmental Control—9.1% | |||||||||||
61,974 | Asahi Holdings, Inc. (Japan) | 1,050,764 | |||||||||
29,700 | BWT AG (Austria) | 901,965 | |||||||||
125,979 | Energy Recovery, Inc.* | 759,653 | |||||||||
63,581 | Fuel Tech, Inc.* | 477,493 | |||||||||
758,000 | Hyflux Ltd. (Singapore) | 1,902,607 | |||||||||
104,000 | Kurita Water Industries Ltd. (Japan) | 3,004,923 | |||||||||
125,808 | Nalco Holding Co. | 3,111,232 | |||||||||
93,913 | Tetra Tech, Inc.* | 2,286,782 | |||||||||
223,548 | Tomra Systems ASA (Norway) | 1,071,261 | |||||||||
14,566,680 | |||||||||||
Hand/Machine Tools—1.4% | |||||||||||
57,866 | Baldor Electric Co. | 2,222,633 | |||||||||
Healthcare - Services—0.6% | |||||||||||
21,369 | Eurofins Scientific (France) | 948,431 | |||||||||
Machinery - Diversified—3.7% | |||||||||||
47,412 | Kadant, Inc.* | 948,714 | |||||||||
25,461 | Lindsay Corp. | 968,282 | |||||||||
66,292 | Roper Industries, Inc. | 4,045,138 | |||||||||
5,962,134 | |||||||||||
Mining—0.3% | |||||||||||
100,506 | 5N Plus, Inc. (Canada)* | 545,770 | |||||||||
Miscellaneous Manufacturing—14.7% | |||||||||||
62,315 | CLARCOR, Inc. | 2,356,753 | |||||||||
64,645 | Donaldson Co., Inc. | 2,993,064 | |||||||||
48,693 | ESCO Technologies, Inc. | 1,502,179 | |||||||||
936,743 | Hansen Transmissions International NV (Belgium)* | 1,436,694 | |||||||||
127,847 | Hexcel Corp.* | 2,071,121 | |||||||||
94,582 | Pall Corp. | 3,687,752 | |||||||||
61,996 | Polypore International, Inc.* | 1,097,949 |
See Notes to Financial Statements.
37
Schedule of Investments (Continued)
PowerShares CleantechTM Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
42,834 | Siemens AG (Germany) | $ | 4,218,844 | ||||||||
45,946 | SPX Corp. | 3,210,707 | |||||||||
43,590 | STR Holdings, Inc.* | 1,005,185 | |||||||||
23,580,248 | |||||||||||
Semiconductors—9.3% | |||||||||||
81,863 | Aixtron AG (Germany) | 2,582,719 | |||||||||
28,840 | Centrotherm Photovoltaics AG (Germany)* | 1,189,282 | |||||||||
53,446 | Cree, Inc.* | 3,912,782 | |||||||||
197,074 | GT Solar International, Inc.* | 1,148,941 | |||||||||
202,030 | MEMC Electronic Materials, Inc.* | 2,620,329 | |||||||||
44,259 | Power Integrations, Inc. | 1,703,086 | |||||||||
503,236 | Renewable Energy Corp. ASA (Norway)* | 1,708,047 | |||||||||
14,865,186 | |||||||||||
Software—5.2% | |||||||||||
87,041 | ANSYS, Inc.* | 3,916,845 | |||||||||
127,361 | Autodesk, Inc.* | 4,331,548 | |||||||||
8,248,393 | |||||||||||
Telecommunications—3.1% | |||||||||||
212,756 | Corning, Inc. | 4,095,553 | |||||||||
39,499 | RuggedCom, Inc. (Canada)* | 807,256 | |||||||||
4,902,809 | |||||||||||
Total Common Stocks and Other Equity Interests (Cost $159,527,220) | 159,640,564 | ||||||||||
Rights—0.2% | |||||||||||
Semiconductors—0.2% | |||||||||||
251,618 | Renewable Energy Corp. ASA (Norway), | ||||||||||
expiring 05/20/10* | |||||||||||
(Cost $836,191) | 348,552 | ||||||||||
Money Market Fund—0.0% | |||||||||||
49,854 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $49,854) | 49,854 | |||||||||
Total Investments (Cost $160,413,265)—100.0% | 160,038,970 | ||||||||||
Liabilities in excess of other assets—(0.0%) | (17,818 | ) | |||||||||
Net Assets—100.0% | $ | 160,021,152 |
Investment Abbreviations:
ADR—American Depositary Receipt
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
38
Schedule of Investments
PowerShares DWA Technical LeadersTM Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.0% | |||||||||||
Consumer Discretionary—24.6% | |||||||||||
30,811 | Aeropostale, Inc.* | $ | 894,751 | ||||||||
26,387 | Big Lots, Inc.* | 1,007,983 | |||||||||
47,659 | Brinker International, Inc. | 882,645 | |||||||||
31,987 | Central European Media Enterprises Ltd., Class A (Bermuda)* | 1,087,558 | |||||||||
100,661 | Chico's FAS, Inc. | 1,498,842 | |||||||||
62,408 | CTC Media, Inc. | 1,054,071 | |||||||||
63,531 | Federal Mogul Corp.* | 1,208,360 | |||||||||
154,626 | Ford Motor Co.* | 2,013,231 | |||||||||
79,817 | Gannett Co., Inc. | 1,358,485 | |||||||||
22,161 | John Wiley & Sons, Inc., Class A | 936,745 | |||||||||
27,850 | Lamar Advertising Co., Class A* | 1,036,577 | |||||||||
101,732 | Las Vegas Sands Corp.* | 2,529,058 | |||||||||
74,292 | Liberty Media Corp. - Capital, Series A* | 3,288,907 | |||||||||
83,769 | Liberty Media Corp. - Interactive, Class A* | 1,287,530 | |||||||||
21,242 | Netflix, Inc.* | 2,098,072 | |||||||||
22,860 | Nordstrom, Inc. | 944,804 | |||||||||
249,810 | Office Depot, Inc.* | 1,713,697 | |||||||||
24,036 | Polo Ralph Lauren Corp. | 2,160,836 | |||||||||
14,589 | Priceline.com, Inc.* | 3,823,047 | |||||||||
29,409 | Royal Caribbean Cruises Ltd.* | 1,054,019 | |||||||||
25,762 | Signet Jewelers Ltd. (United Kingdom)* | 824,899 | |||||||||
15,672 | Stanley Black & Decker, Inc. | 974,015 | |||||||||
95,686 | TRW Automotive Holdings Corp.* | 3,082,046 | |||||||||
52,485 | Virgin Media, Inc. | 923,211 | |||||||||
57,764 | Wyndham Worldwide Corp. | 1,548,653 | |||||||||
39,232,042 | |||||||||||
Consumer Staples—1.2% | |||||||||||
25,714 | Central European Distribution Corp.* | 890,990 | |||||||||
17,733 | J.M. Smucker Co. (The) | 1,082,954 | |||||||||
1,973,944 | |||||||||||
Energy—1.9% | |||||||||||
16,911 | Massey Energy Co. | 619,450 | |||||||||
31,820 | Noble Energy, Inc. | 2,431,048 | |||||||||
3,050,498 | |||||||||||
Financials—14.2% | |||||||||||
44,652 | AmeriCredit Corp.* | 1,068,969 | |||||||||
74,444 | Brandywine Realty Trust REIT | 948,416 | |||||||||
63,379 | CB Richard Ellis Group, Inc., Class A* | 1,097,724 | |||||||||
21,777 | Digital Realty Trust, Inc. REIT | 1,278,310 | |||||||||
157,647 | Fifth Third Bancorp | 2,350,517 | |||||||||
166,878 | Genworth Financial, Inc., Class A* | 2,756,825 | |||||||||
23,824 | Hanover Insurance Group, Inc. (The) | 1,073,271 | |||||||||
120,196 | HRPT Properties Trust REIT | 942,337 | |||||||||
27,544 | Lincoln National Corp. | 842,571 | |||||||||
34,216 | Macerich Co. (The) REIT | 1,529,797 | |||||||||
17,216 | SL Green Realty Corp. REIT | 1,070,319 | |||||||||
111,879 | Ventas, Inc. REIT | 5,284,045 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
3,021 | White Mountains Insurance Group Ltd. | $ | 1,038,016 | ||||||||
70,385 | XL Capital Ltd., Class A | 1,252,853 | |||||||||
22,533,970 | |||||||||||
Health Care—10.9% | |||||||||||
61,519 | Brookdale Senior Living, Inc.* | 1,322,658 | |||||||||
58,557 | Dendreon Corp.* | 3,174,961 | |||||||||
24,174 | Edwards Lifesciences Corp.* | 2,491,856 | |||||||||
9,890 | Express Scripts, Inc.* | 990,286 | |||||||||
193,649 | Health Management Associates, Inc., Class A* | 1,804,809 | |||||||||
47,387 | Henry Schein, Inc.* | 2,865,492 | |||||||||
17,856 | Medco Health Solutions, Inc.* | 1,052,076 | |||||||||
19,244 | Perrigo Co. | 1,174,461 | |||||||||
184,370 | Tenet Healthcare Corp.* | 1,152,312 | |||||||||
29,532 | Valeant Pharmaceuticals International* | 1,328,940 | |||||||||
17,357,851 | |||||||||||
Industrials—18.2% | |||||||||||
28,691 | BE Aerospace, Inc.* | 852,410 | |||||||||
13,964 | Bucyrus International, Inc. | 879,872 | |||||||||
33,271 | CSX Corp. | 1,864,840 | |||||||||
15,841 | Danaher Corp. | 1,335,079 | |||||||||
20,237 | Deere & Co. | 1,210,577 | |||||||||
33,133 | Donaldson Co., Inc. | 1,534,058 | |||||||||
22,585 | Flowserve Corp. | 2,587,789 | |||||||||
27,027 | Gardner Denver, Inc. | 1,359,188 | |||||||||
14,667 | Goodrich Corp. | 1,087,998 | |||||||||
28,385 | IDEX Corp. | 953,736 | |||||||||
109,118 | J.B. Hunt Transport Services, Inc. | 4,022,089 | |||||||||
25,182 | Norfolk Southern Corp. | 1,494,048 | |||||||||
31,362 | Oshkosh Corp.* | 1,211,200 | |||||||||
21,930 | Precision Castparts Corp. | 2,814,496 | |||||||||
39,618 | Republic Services, Inc. | 1,229,347 | |||||||||
40,991 | Textron, Inc. | 936,234 | |||||||||
17,472 | Union Pacific Corp. | 1,321,932 | |||||||||
12,803 | United Technologies Corp. | 959,585 | |||||||||
12,148 | W.W. Grainger, Inc. | 1,342,840 | |||||||||
28,997,318 | |||||||||||
Information Technology—15.3% | |||||||||||
100,143 | Advanced Micro Devices, Inc.* | 907,296 | |||||||||
32,902 | Amphenol Corp., Class A | 1,520,401 | |||||||||
52,042 | ANSYS, Inc.* | 2,341,890 | |||||||||
23,076 | Apple, Inc.* | 6,025,605 | |||||||||
15,519 | Cree, Inc.* | 1,136,146 | |||||||||
18,776 | Dolby Laboratories, Inc., Class A* | 1,290,287 | |||||||||
16,862 | F5 Networks, Inc.* | 1,153,867 | |||||||||
18,481 | FactSet Research Systems, Inc. | 1,390,141 | |||||||||
73,849 | JDS Uniphase Corp.* | 959,298 | |||||||||
5,782 | MasterCard, Inc., Class A | 1,434,167 | |||||||||
24,386 | Rovi Corp.* | 950,566 | |||||||||
24,646 | Salesforce.com, Inc.* | 2,109,698 | |||||||||
31,362 | SanDisk Corp.* | 1,251,030 |
See Notes to Financial Statements.
39
Schedule of Investments (Continued)
PowerShares DWA Technical LeadersTM Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
62,676 | Seagate Technology (Cayman Islands)* | $ | 1,151,358 | ||||||||
18,771 | Sybase, Inc.* | 814,286 | |||||||||
24,436,036 | |||||||||||
Materials—7.7% | |||||||||||
29,178 | Ashland, Inc. | 1,737,842 | |||||||||
45,173 | Ball Corp. | 2,403,655 | |||||||||
13,339 | Cliffs Natural Resources, Inc. | 834,088 | |||||||||
80,014 | Huntsman Corp. | 912,960 | |||||||||
38,443 | International Paper Co. | 1,027,966 | |||||||||
16,453 | Lubrizol Corp. (The) | 1,486,364 | |||||||||
39,205 | RPM International, Inc. | 865,646 | |||||||||
28,951 | Sigma-Aldrich Corp. | 1,716,794 | |||||||||
14,943 | Walter Energy, Inc. | 1,207,544 | |||||||||
12,192,859 | |||||||||||
Telecommunication Services—3.3% | |||||||||||
130,300 | American Tower Corp., Class A* | 5,317,543 | |||||||||
Utilities—2.7% | |||||||||||
42,137 | Energen Corp. | 2,059,235 | |||||||||
16,758 | National Fuel Gas Co. | 871,751 | |||||||||
27,392 | ONEOK, Inc. | 1,346,043 | |||||||||
4,277,029 | |||||||||||
Total Common Stocks and Other Equity Interests (Cost $126,166,330) | 159,369,090 | ||||||||||
Money Market Fund—0.1% | |||||||||||
156,526 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $156,526) | 156,526 | |||||||||
Total Investments (Cost $126,322,856)—100.1% | 159,525,616 | ||||||||||
Liabilities in excess of other assets—(0.1%) | (154,306 | ) | |||||||||
Net Assets—100.0% | $ | 159,371,310 |
Investment Abbreviations:
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
40
Schedule of Investments
PowerShares Global Listed Private Equity Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.4% | |||||||||||
Diversified Financial Services—9.4% | |||||||||||
643,683 | Brait SA (South Africa) | $ | 1,817,042 | ||||||||
600,100 | GP Investments Ltd. (Bermuda)* | 2,742,621 | |||||||||
1,557,787 | Intermediate Capital Group PLC (United Kingdom) | 6,710,761 | |||||||||
295,844 | Onex Corp. (Canada) | 8,596,227 | |||||||||
19,866,651 | |||||||||||
Electric—1.7% | |||||||||||
162,108 | Otter Tail Corp. | 3,602,040 | |||||||||
Food—3.3% | |||||||||||
405,007 | Hakon Invest AB (Sweden) | 6,942,631 | |||||||||
Holding Companies-Diversified—22.6% | |||||||||||
98,225 | Ackermans & van Haaren NV (Belgium) | 6,771,577 | |||||||||
157,262 | Compass Diversified Holdings | 2,283,444 | |||||||||
122,962 | Hal Trust (Netherlands) | 12,938,467 | |||||||||
238,923 | Latour Investment AB, Class B (Sweden) | 3,415,795 | |||||||||
476,244 | Leucadia National Corp. | 12,053,735 | |||||||||
78,716 | Schouw & Co. (Denmark) | 1,883,926 | |||||||||
131,126 | Wendel (France) | 8,474,824 | |||||||||
47,821,768 | |||||||||||
Investment Companies—46.8% | |||||||||||
951,728 | American Capital Ltd.* | 5,843,610 | |||||||||
413,902 | AP Alternative Assets LP (United Kingdom)* | 2,822,812 | |||||||||
564,502 | Apollo Investment Corp. | 6,864,344 | |||||||||
444,188 | Ares Capital Corp. | 7,044,822 | |||||||||
239,606 | BlackRock Kelso Capital Corp. | 2,542,220 | |||||||||
19,069 | Capital Southwest Corp. | 1,793,439 | |||||||||
498,945 | CapMan Oyj, Class B (Finland) | 1,151,686 | |||||||||
1,028,000 | China Merchants China Direct Investments Ltd. (Hong Kong)* | 2,420,426 | |||||||||
1,039,957 | DeA Capital SpA (Italy)* | 1,722,449 | |||||||||
144,521 | Electra Private Equity PLC (United Kingdom)* | 3,116,317 | |||||||||
126,875 | Eurazeo (France) | 8,784,755 | |||||||||
204,994 | Fifth Street Finance Corp. | 2,613,673 | |||||||||
99,502 | Gladstone Capital Corp. | 1,335,317 | |||||||||
374,568 | Graphite Enterprise Trust PLC (United Kingdom) | 1,905,785 | |||||||||
253,087 | Harris & Harris Group, Inc.* | 1,227,472 | |||||||||
168,526 | Hercules Technology Growth Capital, Inc. | 1,826,822 | |||||||||
139,251 | HgCapital Trust PLC (United Kingdom) | 1,771,090 | |||||||||
394,737 | Hosken Consolidated Investments Ltd. (South Africa)* | 4,345,345 | |||||||||
72,376 | Kayne Anderson Energy Development Co.* | 1,170,320 | |||||||||
216,340 | Kohlberg Capital Corp. | 1,222,321 | |||||||||
1,578,179 | LMS Capital PLC (United Kingdom)* | 1,207,199 | |||||||||
1,561,530 | Macquarie Korea Infrastructure Fund (South Korea) | 6,720,348 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
76,658 | Main Street Capital Corp. | $ | 1,214,263 | ||||||||
340,582 | MCG Capital Corp.* | 2,258,059 | |||||||||
130,897 | MVC Capital, Inc. | 1,849,575 | |||||||||
137,649 | NGP Capital Resources Co. | 1,053,015 | |||||||||
94,481 | Paris Orleans et Cie SA (France) | 2,417,618 | |||||||||
170,129 | PennantPark Investment Corp. | 1,861,211 | |||||||||
294,573 | Prospect Capital Corp. | 3,425,884 | |||||||||
363,904 | Ratos AB, Class B (Sweden) | 11,379,596 | |||||||||
342,113 | RHJ International (Belgium)* | 2,921,476 | |||||||||
177,916 | TICC Capital Corp. | 1,266,762 | |||||||||
99,100,031 | |||||||||||
Media—1.1% | |||||||||||
1,201,480 | Southern Cross Media Group Ltd. (Australia) | 2,424,649 | |||||||||
Venture Capital—13.9% | |||||||||||
2,584,949 | 3i Group PLC (United Kingdom) | 10,667,696 | |||||||||
223,522 | Altamir Amboise (France)* | 1,836,926 | |||||||||
77,094 | Deutsche Beteiligungs AG (Germany) | 1,771,389 | |||||||||
85,727 | Dinamia SA (Spain)* | 1,145,780 | |||||||||
78,218 | Gimv NV (Belgium) | 4,233,438 | |||||||||
1,878,785 | IP Group PLC (United Kingdom)* | 1,207,820 | |||||||||
245,660 | Jafco Co. Ltd. (Japan)* | 7,522,923 | |||||||||
10,115,000 | K1 Ventures Ltd. (Singapore) | 1,213,756 | |||||||||
29,599,728 | |||||||||||
Water—1.6% | |||||||||||
95,746 | Pico Holdings, Inc.* | 3,403,770 | |||||||||
Total Common Stocks and Other Equity Interests (Cost $188,606,091) | 212,761,268 | ||||||||||
Money Market Fund—0.1% | |||||||||||
135,318 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $135,318) | 135,318 | |||||||||
Total Investments (Cost $188,741,409)—100.5% | 212,896,586 | ||||||||||
Liabilities in excess of other assets—(0.5%) | (1,017,128 | ) | |||||||||
Net Assets—100.0% | $ | 211,879,458 |
Notes to Schedule of Investments:
* Non-income producing security.
This Fund has holdings greater than 10% of net assets in the following countries:
United Kingdom | 13.9 | % | |||||
Sweden | 10.3 | ||||||
France | 10.2 |
See Notes to Financial Statements.
41
Schedule of Investments
PowerShares Golden Dragon Halter USX China Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.0% | |||||||||||
Bermuda—0.5% | |||||||||||
79,374 | China Yuchai International Ltd. | $ | 1,674,791 | ||||||||
94,869 | Global Sources Ltd.* | 695,390 | |||||||||
2,370,181 | |||||||||||
British Virgin Islands—0.7% | |||||||||||
106,368 | Hollysys Automation Technologies Ltd.* | 1,103,036 | |||||||||
48,997 | Origin Agritech Ltd.* | 429,214 | |||||||||
183,895 | Renesola Ltd. ADR* | 1,436,220 | |||||||||
26,202 | Tongxin International Ltd.* | 200,183 | |||||||||
3,168,653 | |||||||||||
Canada—0.7% | |||||||||||
346,509 | Silvercorp Metals, Inc. | 2,851,769 | |||||||||
Cayman Islands—10.8% | |||||||||||
45,797 | 3SBio, Inc. ADR* | 545,900 | |||||||||
107,038 | 7 Days Group Holdings Ltd. ADR* | 1,123,899 | |||||||||
163,964 | Actions Semiconductor Co. Ltd. ADR* | 391,874 | |||||||||
37,641 | AutoChina International Ltd.* | 979,419 | |||||||||
54,901 | Changyou.com Ltd. ADR* | 1,800,753 | |||||||||
140,777 | China Cord Blood Corp.* | 830,584 | |||||||||
123,625 | China Digital TV Holding Co. Ltd. ADR* | 829,524 | |||||||||
73,901 | China Distance Education Holdings Ltd. ADR* | 378,373 | |||||||||
50,768 | China GrenTech Corp. Ltd. ADR* | 122,351 | |||||||||
108,779 | China Hydroelectric Corp. ADR* | 1,030,137 | |||||||||
50,858 | China Mass Media Corp. ADR* | 137,317 | |||||||||
68,696 | China Medical Technologies, Inc. ADR | 953,500 | |||||||||
221,812 | China Nepstar Chain Drugstore Ltd. ADR | 1,461,741 | |||||||||
298,647 | China Real Estate Information Corp. ADR* | 2,466,824 | |||||||||
92,308 | China Techfaith Wireless Communication Technology Ltd. ADR* | 219,693 | |||||||||
97,173 | CNinsure, Inc. ADR | 2,695,579 | |||||||||
104,649 | Concord Medical Services Holdings Ltd. ADR* | 759,752 | |||||||||
169,894 | E-House China Holdings Ltd. ADR | 2,855,918 | |||||||||
119,155 | Longtop Financial Technologies Ltd. ADR* | 4,100,124 | |||||||||
80,295 | New Oriental Education & Technology Group ADR* | 7,513,203 | |||||||||
80,420 | Noah Education Holdings Ltd. ADR* | 344,198 | |||||||||
21,217 | Perfect World Co. Ltd. ADR* | 710,133 | |||||||||
954,626 | Semiconductor Manufacturing International Corp. ADR* | 5,078,610 | |||||||||
306,740 | Shanda Games Ltd. ADR* | 2,147,180 | |||||||||
94,240 | Spreadtrum Communications, Inc. ADR* | 631,408 | |||||||||
165,755 | Trina Solar Ltd. ADR* | 4,288,082 | |||||||||
84,954 | Vanceinfo Technologies, Inc. ADR* | 2,026,153 | |||||||||
146,019 | WuXi PharmaTech Cayman, Inc. ADR* | 2,803,565 | |||||||||
49,225,794 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
China—62.4% | |||||||||||
60,038 | 51job, Inc. ADR* | $ | 1,210,366 | ||||||||
63,083 | Acorn International, Inc. ADR | 284,504 | |||||||||
95,636 | AgFeed Industries, Inc.* | 411,235 | |||||||||
267,932 | Agria Corp. ADR* | 490,316 | |||||||||
139,645 | Airmedia Group, Inc. ADR* | 895,124 | |||||||||
796,263 | Aluminum Corp. of China Ltd. ADR* | 19,317,340 | |||||||||
166,811 | American Oriental Bioengineering, Inc.* | 675,585 | |||||||||
47,709 | ATA, Inc. ADR* | 168,890 | |||||||||
33,647 | Baidu, Inc. ADR* | 23,192,877 | |||||||||
89,328 | BMP Sunstone Corp.* | 479,691 | |||||||||
91,097 | Canadian Solar, Inc.* | 1,577,800 | |||||||||
240,368 | China Eastern Airlines Corp. Ltd. ADR* | 13,311,580 | |||||||||
46,845 | China Finance Online Co. Ltd. ADR* | 351,338 | |||||||||
299,246 | China Life Insurance Co. Ltd. ADR | 20,226,037 | |||||||||
243,685 | China Petroleum and Chemical Corp. ADR | 19,558,158 | |||||||||
145,880 | China Security & Surveillance Technology, Inc.* | 867,986 | |||||||||
341,188 | China Southern Airlines Co. Ltd. ADR* | 8,672,999 | |||||||||
94,880 | China Sunergy Co. Ltd. ADR* | 455,424 | |||||||||
412,286 | China Telecom Corp. Ltd. ADR | 18,923,927 | |||||||||
34,717 | ChinaEdu Corp. ADR* | 264,196 | |||||||||
312,964 | Ctrip.com International Ltd. ADR* | 11,429,445 | |||||||||
25,054 | eLong, Inc. ADR* | 280,855 | |||||||||
278,887 | Focus Media Holding Ltd. ADR* | 4,679,724 | |||||||||
109,938 | General Steel Holdings, Inc.* | 410,069 | |||||||||
482,278 | Giant Interactive Group, Inc. ADR | 3,646,022 | |||||||||
303,007 | Guangshen Railway Co. Ltd. ADR | 5,872,276 | |||||||||
179,936 | Gushan Environmental Energy Ltd. ADR* | 183,535 | |||||||||
84,504 | Home Inns & Hotels Management, Inc. ADR* | 2,944,964 | |||||||||
643,483 | Huaneng Power International, Inc. ADR | 14,800,109 | |||||||||
46,775 | Hurray! Holding Co. Ltd. ADR* | 161,842 | |||||||||
358,709 | JA Solar Holdings Co. Ltd. ADR* | 2,191,712 | |||||||||
34,953 | Jinpan International Ltd. | 610,978 | |||||||||
72,584 | KongZhong Corp. ADR* | 525,508 | |||||||||
279,921 | LDK Solar Co. Ltd. ADR* | 2,177,785 | |||||||||
89,588 | Linktone Ltd. ADR* | 148,716 | |||||||||
243,196 | Mindray Medical International Ltd. ADR | 9,290,087 | |||||||||
275,872 | NetEase.com, Inc. ADR* | 9,619,657 | |||||||||
74,723 | Ninetowns Internet Technology Group Co. Ltd. ADR* | 116,568 | |||||||||
233,664 | PetroChina Co. Ltd. ADR | 26,901,736 | |||||||||
101,400 | Qiao Xing Mobile Communication Co. Ltd.* | 269,724 | |||||||||
155,793 | Qiao Xing Universal Telephone, Inc.* | 264,848 | |||||||||
142,315 | Shanda Interactive Entertainment Ltd. ADR* | 6,452,562 | |||||||||
124,027 | Simcere Pharmaceutical Group ADR* | 987,255 | |||||||||
128,864 | SINA Corp.* | 4,729,309 | |||||||||
153,484 | Sinopec Shanghai Petrochemical Co. Ltd. ADR* | 5,855,415 | |||||||||
115,203 | Sinovac Biotech Ltd.* | 667,025 | |||||||||
133,820 | Solarfun Power Holdings Co. Ltd. ADR* | 1,156,205 |
See Notes to Financial Statements.
42
Schedule of Investments (Continued)
PowerShares Golden Dragon Halter USX China Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
374,945 | Suntech Power Holdings Co. Ltd. ADR* | $ | 5,099,252 | ||||||||
53,464 | The9 Ltd. ADR* | 344,843 | |||||||||
72,068 | Tongjitang Chinese Medicines Co. ADR* | 314,217 | |||||||||
78,652 | Vimicro International Corp. ADR* | 357,080 | |||||||||
152,963 | VisionChina Media, Inc. ADR* | 656,211 | |||||||||
219,147 | WSP Holdings Ltd. ADR | 591,697 | |||||||||
160,710 | Xinhua Sports & Entertainment Ltd. ADR* | 107,676 | |||||||||
161,184 | Xinyuan Real Estate Co. Ltd. ADR* | 583,486 | |||||||||
877,327 | Yanzhou Coal Mining Co. Ltd. ADR | 24,433,557 | |||||||||
316,319 | Yingli Green Energy Holding Co. Ltd. ADR* | 3,995,109 | |||||||||
39,461 | Yucheng Technologies Ltd.* | 150,741 | |||||||||
284,343,173 | |||||||||||
Hong Kong—15.9% | |||||||||||
225,965 | CDC Corp., Class A* | 601,067 | |||||||||
546,998 | China Mobile Ltd. ADR | 26,748,202 | |||||||||
41,781 | China Natural Resources, Inc.* | 481,317 | |||||||||
1,802,937 | China Unicom Ltd. ADR | 22,410,507 | |||||||||
123,170 | CNOOC Ltd. ADR | 21,668,066 | |||||||||
95,424 | Nam Tai Electronics, Inc.* | 479,029 | |||||||||
72,388,188 | |||||||||||
United States—9.0% | |||||||||||
142,928 | Advanced Battery Technologies, Inc.* | 495,960 | |||||||||
46,232 | American Dairy, Inc.* | 878,408 | |||||||||
64,407 | American Lorain Corp.* | 204,814 | |||||||||
96,616 | A-Power Energy Generation Systems Ltd.* | 1,013,502 | |||||||||
100,721 | AsiaInfo Holdings, Inc.* | 2,861,484 | |||||||||
32,214 | China Advanced Construction Materials Group, Inc.* | 136,910 | |||||||||
35,944 | China Agritech, Inc.* | 594,154 | |||||||||
113,428 | China Architectural Engineering, Inc.* | 134,979 | |||||||||
38,538 | China Auto Logistics, Inc.* | 155,694 | |||||||||
57,604 | China Automotive Systems, Inc.* | 1,281,113 | |||||||||
136,412 | China BAK Battery, Inc.* | 274,188 | |||||||||
50,052 | China Biologic Products, Inc.* | 621,145 | |||||||||
58,773 | China Fire & Security Group, Inc.* | 804,015 | |||||||||
51,197 | China GengSheng Minerals, Inc.* | 131,576 | |||||||||
52,058 | China Green Agriculture, Inc.* | 660,095 | |||||||||
70,423 | China Housing & Land Development, Inc.* | 243,664 | |||||||||
110,337 | China Information Security Technology, Inc.* | 666,436 | |||||||||
170,386 | China Infrastructure Investment Corp.* | 281,137 | |||||||||
69,260 | China Integrated Energy, Inc.* | 815,190 | |||||||||
60,474 | China Marine Food Group Ltd.* | 372,520 | |||||||||
70,071 | China MediaExpress Holdings, Inc.* | 913,726 | |||||||||
45,103 | China Natural Gas, Inc.* | 409,986 | |||||||||
55,061 | China North East Petroleum Holdings Ltd.* | 486,189 | |||||||||
76,941 | China Nutrifruit Group Ltd.* | 276,218 | |||||||||
92,207 | China Pharma Holdings, Inc.* | 318,114 | |||||||||
99,170 | China Precision Steel, Inc.* | 204,290 | |||||||||
41,021 | China Ritar Power Corp.* | 176,390 | |||||||||
35,747 | China Sky One Medical, Inc.* | 506,535 | |||||||||
47,821 | China TransInfo Technology Corp.* | 334,747 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
66,863 | China Valves Technology, Inc.* | $ | 732,150 | ||||||||
36,897 | China Wind Systems, Inc.* | 174,154 | |||||||||
86,918 | China XD Plastics Co. Ltd.* | 593,650 | |||||||||
47,643 | China-Biotics, Inc.* | 848,998 | |||||||||
96,203 | ChinaCast Education Corp.* | 647,446 | |||||||||
33,584 | ChinaNet Online Holdings, Inc.* | 143,068 | |||||||||
29,206 | Chindex International, Inc.* | 369,164 | |||||||||
76,924 | Cogo Group, Inc.* | 541,545 | |||||||||
69,500 | Deer Consumer Products, Inc.* | 716,545 | |||||||||
65,093 | Duoyuan Printing, Inc.* | 563,705 | |||||||||
58,844 | Fuqi International, Inc.* | 618,450 | |||||||||
79,333 | Fushi Copperweld, Inc.* | 877,423 | |||||||||
73,593 | Gulf Resources, Inc.* | 791,125 | |||||||||
66,167 | Harbin Electric, Inc.* | 1,449,719 | |||||||||
28,876 | Hong Kong Highpower Technology, Inc.* | 133,118 | |||||||||
31,260 | HQ Sustainable Maritime Industries, Inc.* | 177,869 | |||||||||
42,499 | Kandi Technolgies Corp.* | 211,220 | |||||||||
51,368 | Lihua International, Inc.* | 451,011 | |||||||||
86,631 | NIVS IntelliMedia Technology Group, Inc.* | 278,086 | |||||||||
31,040 | Orient Paper, Inc.* | 322,195 | |||||||||
39,801 | Puda Coal, Inc.* | 401,592 | |||||||||
53,994 | RINO International Corp.* | 929,777 | |||||||||
115,440 | Shengda Tech, Inc.* | 795,382 | |||||||||
53,459 | Sinohub, Inc.* | 152,893 | |||||||||
14,823 | Skystar Bio-Pharmaceutical Co. Ltd.* | 143,635 | |||||||||
80,436 | Sohu.com, Inc.* | 3,872,993 | |||||||||
38,920 | SORL Auto Parts, Inc.* | 412,163 | |||||||||
80,839 | Sutor Technology Group Ltd.* | 222,307 | |||||||||
115,012 | Synutra International, Inc.* | 2,695,881 | |||||||||
22,156 | Telestone Technologies Corp.* | 302,651 | |||||||||
56,726 | Tianyin Pharmaceutical Co., Inc. | 199,108 | |||||||||
151,928 | Tiens Biotech Group USA, Inc.* | 344,877 | |||||||||
35,588 | Universal Travel Group* | 324,918 | |||||||||
279,310 | UTStarcom, Inc.* | 796,034 | |||||||||
47,614 | Winner Medical Group, Inc.* | 297,111 | |||||||||
72,116 | Wonder Auto Technology, Inc.* | 834,382 | |||||||||
53,995 | Wuhan General Group China, Inc.* | 91,792 | |||||||||
33,469 | Yuhe International, Inc.* | 297,205 | |||||||||
73,959 | Zhongpin, Inc.* | 937,800 | |||||||||
24,802 | ZST Digital Networks, Inc.* | 160,469 | |||||||||
41,106,790 | |||||||||||
Total Investments (Cost $451,825,467)—100.0% | 455,454,548 | ||||||||||
Other assets less liabilities—0.0% | 68,739 | ||||||||||
Net Assets—100.0% | $ | 455,523,287 |
Investment Abbreviations:
ADR—American Depositary Receipt
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
43
Schedule of Investments
PowerShares Lux Nanotech Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.2% | |||||||||||
Auto Manufacturers—3.0% | |||||||||||
21,252 | Toyota Motor Corp. ADR (Japan) | $ | 1,638,317 | ||||||||
Biotechnology—10.7% | |||||||||||
51,126 | Abraxis Bioscience, Inc.* | 2,554,766 | |||||||||
532,952 | Nanosphere, Inc.* | 3,357,598 | |||||||||
5,912,364 | |||||||||||
Chemicals—16.1% | |||||||||||
23,090 | Air Products & Chemicals, Inc. | 1,772,850 | |||||||||
45,533 | E.I. du Pont de Nemours & Co. | 1,814,035 | |||||||||
342,766 | Shengda Tech, Inc.* | 2,361,658 | |||||||||
546,532 | Symyx Technologies, Inc.* | 2,978,599 | |||||||||
8,927,142 | |||||||||||
Commercial Services—3.6% | |||||||||||
3,432,222 | Altair Nanotechnologies, Inc.* | 2,004,418 | |||||||||
Computers—6.1% | |||||||||||
32,125 | Hewlett-Packard Co. | 1,669,536 | |||||||||
13,276 | International Business Machines Corp. | 1,712,604 | |||||||||
3,382,140 | |||||||||||
Electrical Components & Equipment—8.1% | |||||||||||
173,579 | A123 Systems, Inc.* | 2,162,794 | |||||||||
550,036 | Ener1, Inc.* | 2,288,150 | |||||||||
4,450,944 | |||||||||||
Electronics—9.4% | |||||||||||
112,458 | FEI Co.* | 2,530,305 | |||||||||
55,502 | NVE Corp.* | 2,676,861 | |||||||||
5,207,166 | |||||||||||
Energy-Alternate Sources—5.8% | |||||||||||
531,852 | Headwaters, Inc.* | 3,191,112 | |||||||||
Investment Companies—4.9% | |||||||||||
558,216 | Harris & Harris Group, Inc.* | 2,707,347 | |||||||||
Miscellaneous Manufacturing—6.6% | |||||||||||
21,186 | 3M Co. | 1,878,563 | |||||||||
93,572 | General Electric Co. | 1,764,768 | |||||||||
3,643,331 | |||||||||||
Pharmaceuticals—12.9% | |||||||||||
638,750 | BioDelivery Sciences International, Inc.* | 2,216,462 | |||||||||
353,110 | Elan Corp. PLC ADR (Ireland)* | 2,372,899 | |||||||||
294,864 | Flamel Technologies SA ADR (France)* | 2,541,728 | |||||||||
7,131,089 | |||||||||||
Semiconductors—7.9% | |||||||||||
77,163 | Intel Corp. | 1,761,631 | |||||||||
59,754 | Veeco Instruments, Inc.* | 2,628,579 | |||||||||
4,390,210 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
Software—5.1% | |||||||||||
400,336 | Accelrys, Inc.* | $ | 2,798,349 | ||||||||
Total Common Stocks and Other Equity Interests (Cost $58,388,759) | 55,383,929 | ||||||||||
Money Market Fund—0.0% | |||||||||||
11,900 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $11,900) | 11,900 | |||||||||
Total Investments (Cost $58,400,659)—100.2% | 55,395,829 | ||||||||||
Liabilities in excess of other assets—(0.2%) | (105,758 | ) | |||||||||
Net Assets—100.0% | $ | 55,290,071 |
Investment Abbreviations:
ADR—American Depositary Receipt
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
44
Schedule of Investments
PowerShares NASDAQ-100 BuyWrite Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests(<)—101.2% | |||||||||||
Auto Manufacturers—1.0% | |||||||||||
2,484 | PACCAR, Inc. | $ | 115,556 | ||||||||
Biotechnology—8.1% | |||||||||||
2,871 | Amgen, Inc.* | 164,681 | |||||||||
1,784 | Biogen Idec, Inc.* | 94,998 | |||||||||
2,774 | Celgene Corp.*(>) | 171,849 | |||||||||
2,025 | Genzyme Corp.* | 107,811 | |||||||||
5,394 | Gilead Sciences, Inc.* | 213,980 | |||||||||
719 | Illumina, Inc.* | 30,104 | |||||||||
1,115 | Life Technologies Corp.* | 61,002 | |||||||||
1,278 | Vertex Pharmaceuticals, Inc.* | 49,548 | |||||||||
893,973 | |||||||||||
Chemicals—0.4% | |||||||||||
712 | Sigma-Aldrich Corp. | 42,221 | |||||||||
Commercial Services—1.9% | |||||||||||
954 | Apollo Group, Inc., Class A* | 54,769 | |||||||||
2,171 | Automatic Data Processing, Inc. | 94,135 | |||||||||
2,089 | Paychex, Inc. | 63,923 | |||||||||
212,827 | |||||||||||
Computers—24.0% | |||||||||||
7,698 | Apple, Inc.* | 2,010,102 | |||||||||
1,765 | Cognizant Technology Solutions Corp., Class A* | 90,333 | |||||||||
4,381 | Dell, Inc.* | 70,885 | |||||||||
671 | Infosys Technologies Ltd. ADR (India) | 40,180 | |||||||||
1,046 | Logitech International SA (Switzerland)* | 17,133 | |||||||||
2,157 | NetApp, Inc.* | 74,783 | |||||||||
3,391 | Research In Motion Ltd. (Canada)*(>) | 241,405 | |||||||||
1,416 | SanDisk Corp.* | 56,484 | |||||||||
3,033 | Seagate Technology (Cayman Islands)* | 55,716 | |||||||||
2,657,021 | |||||||||||
Distribution/Wholesale—0.4% | |||||||||||
859 | Fastenal Co. | 46,979 | |||||||||
Electronics—1.0% | |||||||||||
5,374 | Flextronics International Ltd. (Singapore)* | 41,649 | |||||||||
975 | FLIR Systems, Inc.* | 29,825 | |||||||||
1,132 | Garmin Ltd. | 42,314 | |||||||||
113,788 | |||||||||||
Energy - Alternate Sources—0.6% | |||||||||||
454 | First Solar, Inc.* | 65,172 | |||||||||
Engineering & Construction—0.2% | |||||||||||
811 | Foster Wheeler AG (Switzerland)* | 24,314 | |||||||||
Environmental Control—0.3% | |||||||||||
542 | Stericycle, Inc.* | 31,924 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests(<) (Continued) | |||||||||||
Healthcare - Products—2.1% | |||||||||||
861 | DENTSPLY International, Inc. | $ | 31,547 | ||||||||
550 | Henry Schein, Inc.* | 33,258 | |||||||||
1,656 | Hologic, Inc.* | 29,593 | |||||||||
237 | Intuitive Surgical, Inc.* | 85,453 | |||||||||
715 | Patterson Cos., Inc. | 22,873 | |||||||||
1,431 | QIAGEN NV (Netherlands)* | 32,698 | |||||||||
235,422 | |||||||||||
Internet—12.0% | |||||||||||
1,796 | Amazon.com, Inc.* | 246,160 | |||||||||
164 | Baidu, Inc. ADR (China)* | 113,045 | |||||||||
5,896 | eBay, Inc.* | 140,384 | |||||||||
1,737 | Expedia, Inc. | 41,010 | |||||||||
903 | Google, Inc., Class A* | 474,472 | |||||||||
3,335 | Liberty Media Corp.—Interactive, Class A* | 51,259 | |||||||||
293 | Priceline.com, Inc.* | 76,781 | |||||||||
5,131 | Symantec Corp.* | 86,047 | |||||||||
1,054 | VeriSign, Inc.* | 28,742 | |||||||||
4,096 | Yahoo!, Inc.* | 67,707 | |||||||||
1,325,607 | |||||||||||
Lodging—0.7% | |||||||||||
818 | Wynn Resorts Ltd. | 72,180 | |||||||||
Machinery - Construction & Mining—0.3% | |||||||||||
616 | Joy Global, Inc. | 34,995 | |||||||||
Media—4.4% | |||||||||||
8,792 | Comcast Corp., Class A | 173,554 | |||||||||
4,048 | DIRECTV, Class A* | 146,659 | |||||||||
1,311 | DISH Network Corp., Class A | 29,039 | |||||||||
8,667 | News Corp., Class A | 133,645 | |||||||||
482,897 | |||||||||||
Pharmaceuticals—4.8% | |||||||||||
445 | Cephalon, Inc.* | 28,569 | |||||||||
1,495 | Express Scripts, Inc.* | 149,694 | |||||||||
1,899 | Mylan, Inc.* | 41,835 | |||||||||
4,480 | Teva Pharmaceutical Industries Ltd. ADR (Israel) | 263,110 | |||||||||
1,527 | Warner Chilcott PLC, Class A (Ireland)* | 43,306 | |||||||||
526,514 | |||||||||||
Retail—5.6% | |||||||||||
2,144 | Bed Bath & Beyond, Inc.* | 98,538 | |||||||||
1,408 | Costco Wholesale Corp. | 83,185 | |||||||||
836 | O'Reilly Automotive, Inc.* | 40,872 | |||||||||
763 | Ross Stores, Inc. | 42,728 | |||||||||
731 | Sears Holdings Corp.* | 88,415 | |||||||||
2,959 | Staples, Inc. | 69,625 | |||||||||
6,291 | Starbucks Corp. | 163,440 | |||||||||
1,016 | Urban Outfitters, Inc.* | 38,110 | |||||||||
624,913 |
See Notes to Financial Statements.
45
Schedule of Investments (Continued)
PowerShares NASDAQ-100 BuyWrite Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests(<) (Continued) | |||||||||||
Semiconductors—7.7% | |||||||||||
2,549 | Altera Corp. | $ | 64,643 | ||||||||
4,233 | Applied Materials, Inc. | 58,331 | |||||||||
2,435 | Broadcom Corp., Class A | 83,983 | |||||||||
11,773 | Intel Corp. | 268,778 | |||||||||
1,270 | KLA - Tencor Corp. | 43,256 | |||||||||
804 | Lam Research Corp.* | 32,602 | |||||||||
1,821 | Linear Technology Corp. | 54,739 | |||||||||
3,629 | Marvell Technology Group Ltd. (Bermuda)* | 74,939 | |||||||||
1,828 | Maxim Integrated Products, Inc. | 35,500 | |||||||||
933 | Microchip Technology, Inc. | 27,253 | |||||||||
3,316 | NVIDIA Corp.* | 52,127 | |||||||||
2,237 | Xilinx, Inc. | 57,670 | |||||||||
853,821 | |||||||||||
Software—14.2% | |||||||||||
6,893 | Activision Blizzard, Inc. | 76,374 | |||||||||
3,126 | Adobe Systems, Inc.* | 105,002 | |||||||||
1,458 | Autodesk, Inc.* | 49,587 | |||||||||
1,294 | BMC Software, Inc.* | 50,932 | |||||||||
3,044 | CA, Inc. | 69,434 | |||||||||
497 | Cerner Corp.* | 42,200 | |||||||||
1,257 | Check Point Software Technologies Ltd. (Israel)* | 44,774 | |||||||||
1,330 | Citrix Systems, Inc.* | 62,510 | |||||||||
2,007 | Electronic Arts, Inc.* | 38,876 | |||||||||
1,161 | Fiserv, Inc.* | 59,316 | |||||||||
2,429 | Intuit, Inc.* | 87,833 | |||||||||
18,371 | Microsoft Corp. | 561,050 | |||||||||
12,717 | Oracle Corp. | 328,607 | |||||||||
1,576,495 | |||||||||||
Telecommunications—9.4% | |||||||||||
12,450 | Cisco Systems, Inc.* | 335,154 | |||||||||
640 | Millicom International Cellular SA (Luxembourg) | 56,499 | |||||||||
988 | NII Holdings, Inc.* | 41,911 | |||||||||
12,336 | QUALCOMM, Inc. | 477,897 | |||||||||
2,053 | Virgin Media, Inc. | 36,112 | |||||||||
3,968 | Vodafone Group PLC ADR (United Kingdom) | 88,090 | |||||||||
1,035,663 | |||||||||||
Textiles—0.3% | |||||||||||
1,118 | Cintas Corp. | 30,465 | |||||||||
Toys/Games/Hobbies—0.5% | |||||||||||
2,535 | Mattel, Inc. | 58,432 | |||||||||
Transportation—1.3% | |||||||||||
1,004 | C.H. Robinson Worldwide, Inc. | 60,541 | |||||||||
1,269 | Expeditors International of Washington, Inc. | 51,699 | |||||||||
775 | J.B. Hunt Transport Services, Inc. | 28,567 | |||||||||
140,807 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests(<) (Continued) | |||||||||||
Total Common Stocks and Other Equity Interests (Cost $7,978,027) | $11,201,986 | ||||||||||
Money Market Fund—0.0% | |||||||||||
3,747 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $3,747) | 3,747 | |||||||||
Total Investments (Cost $7,981,774)—101.2% | 11,205,733 | ||||||||||
Liabilities in excess of other assets—(1.2%) | (135,530 | ) | |||||||||
Net Assets—100.0% | $ | 11,070,203 |
Investment Abbreviations:
ADR—American Depositary Receipt
Notes to Schedule of Investments:
* Non-income producing security.
(<) Except as otherwise noted, a portion of all securities in the portfolio are subject to call options when written. See Note 2H.
(>) Security not subject to call options written.
See Notes to Financial Statements.
46
Schedule of Investments
PowerShares S&P 500 BuyWrite Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests(<)—101.1% | |||||||||||
Consumer Discretionary—10.7% | |||||||||||
1,392 | Abercrombie & Fitch Co., Class A | $ | 60,872 | ||||||||
5,417 | Amazon.com, Inc.* | 742,454 | |||||||||
2,035 | Apollo Group, Inc., Class A* | 116,829 | |||||||||
1,430 | AutoNation, Inc.* | 28,886 | |||||||||
469 | AutoZone, Inc.* | 86,770 | |||||||||
4,148 | Bed Bath & Beyond, Inc.* | 190,642 | |||||||||
5,427 | Best Buy Co., Inc. | 247,471 | |||||||||
1,308 | Big Lots, Inc.* | 49,966 | |||||||||
6,872 | Carnival Corp. | 286,562 | |||||||||
10,718 | CBS Corp., Class B | 173,739 | |||||||||
4,974 | Coach, Inc. | 207,665 | |||||||||
44,905 | Comcast Corp., Class A | 886,425 | |||||||||
4,379 | D.R. Horton, Inc. | 64,328 | |||||||||
2,214 | Darden Restaurants, Inc. | 99,076 | |||||||||
979 | DeVry, Inc. | 61,080 | |||||||||
14,805 | DIRECTV, Class A* | 536,385 | |||||||||
4,489 | Discovery Communications, Inc., Class A* | 173,724 | |||||||||
4,253 | Eastman Kodak Co.* | 26,028 | |||||||||
3,348 | Expedia, Inc. | 79,046 | |||||||||
2,190 | Family Dollar Stores, Inc. | 86,636 | |||||||||
53,304 | Ford Motor Co.* | 694,018 | |||||||||
2,406 | Fortune Brands, Inc. | 126,123 | |||||||||
2,416 | GameStop Corp., Class A*(>) | 58,733 | |||||||||
3,757 | Gannett Co., Inc. | 63,944 | |||||||||
7,538 | Gap, Inc. (The) | 186,415 | |||||||||
2,512 | Genuine Parts Co. | 107,514 | |||||||||
3,834 | Goodyear Tire & Rubber Co. (The)* | 51,491 | |||||||||
5,311 | H&R Block, Inc. | 97,244 | |||||||||
3,709 | Harley-Davidson, Inc. | 125,475 | |||||||||
1,099 | Harman International Industries, Inc.* | 43,389 | |||||||||
1,943 | Hasbro, Inc. | 74,533 | |||||||||
26,880 | Home Depot, Inc. (The) | 947,520 | |||||||||
4,695 | International Game Technology | 98,971 | |||||||||
7,692 | Interpublic Group of Cos., Inc. (The)* | 68,536 | |||||||||
3,736 | J.C. Penney Co., Inc. | 108,979 | |||||||||
10,635 | Johnson Controls, Inc. | 357,230 | |||||||||
4,854 | Kohl's Corp.* | 266,921 | |||||||||
2,349 | Leggett & Platt, Inc. | 57,621 | |||||||||
2,575 | Lennar Corp., Class A | 51,243 | |||||||||
4,235 | Limited Brands, Inc. | 113,498 | |||||||||
23,295 | Lowe's Cos., Inc. | 631,760 | |||||||||
6,665 | Macy's, Inc. | 154,628 | |||||||||
4,029 | Marriott International, Inc., Class A | 148,106 | |||||||||
5,757 | Mattel, Inc. | 132,699 | |||||||||
17,009 | McDonald's Corp.(>) | 1,200,665 | |||||||||
4,998 | McGraw-Hill Cos., Inc. (The) | 168,533 | |||||||||
582 | Meredith Corp. | 20,911 | |||||||||
1,842 | New York Times Co. (The), Class A* | 18,273 | |||||||||
4,398 | Newell Rubbermaid, Inc. | 75,074 | |||||||||
35,660 | News Corp., Class A | 549,877 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests(<) (Continued) | |||||||||||
6,174 | NIKE, Inc., Class B | $ | 468,668 | ||||||||
2,616 | Nordstrom, Inc. | 108,119 | |||||||||
4,349 | Office Depot, Inc.* | 29,834 | |||||||||
4,915 | Omnicom Group, Inc. | 209,674 | |||||||||
2,178 | O'Reilly Automotive, Inc.* | 106,482 | |||||||||
906 | Polo Ralph Lauren Corp. | 81,449 | |||||||||
721 | Priceline.com, Inc.* | 188,938 | |||||||||
5,023 | Pulte Group, Inc.* | 65,751 | |||||||||
1,983 | RadioShack Corp. | 42,734 | |||||||||
1,961 | Ross Stores, Inc. | 109,816 | |||||||||
1,418 | Scripps Networks Interactive, Inc., Class A | 64,292 | |||||||||
768 | Sears Holdings Corp.* | 92,890 | |||||||||
1,456 | Sherwin-Williams Co. (The) | 113,670 | |||||||||
2,492 | Stanley Black & Decker, Inc. | 154,878 | |||||||||
11,541 | Staples, Inc. | 271,560 | |||||||||
11,770 | Starbucks Corp. | 305,785 | |||||||||
2,957 | Starwood Hotels & Resorts Worldwide, Inc. | 161,186 | |||||||||
11,906 | Target Corp. | 677,094 | |||||||||
1,969 | Tiffany & Co. | 95,457 | |||||||||
5,581 | Time Warner Cable, Inc. | 313,931 | |||||||||
18,203 | Time Warner, Inc. | 602,155 | |||||||||
6,645 | TJX Cos., Inc. (The) | 307,929 | |||||||||
2,054 | Urban Outfitters, Inc.* | 77,046 | |||||||||
1,400 | VF Corp. | 120,988 | |||||||||
9,615 | Viacom, Inc., Class B* | 339,698 | |||||||||
30,660 | Walt Disney Co. (The)(>) | 1,129,514 | |||||||||
97 | Washington Post Co. (The), Class B | 49,195 | |||||||||
1,184 | Whirlpool Corp. | 128,902 | |||||||||
2,831 | Wyndham Worldwide Corp. | 75,899 | |||||||||
1,093 | Wynn Resorts Ltd. | 96,446 | |||||||||
7,430 | Yum! Brands, Inc. | 315,181 | |||||||||
17,909,669 | |||||||||||
Consumer Staples—11.0% | |||||||||||
32,925 | Altria Group, Inc. | 697,681 | |||||||||
10,173 | Archer-Daniels-Midland Co. | 284,234 | |||||||||
6,767 | Avon Products, Inc. | 218,777 | |||||||||
1,720 | Brown-Forman Corp., Class B | 100,070 | |||||||||
2,986 | Campbell Soup Co. | 107,078 | |||||||||
2,220 | Clorox Co. (The) | 143,634 | |||||||||
36,439 | Coca-Cola Co. (The)(>) | 1,947,664 | |||||||||
5,059 | Coca-Cola Enterprises, Inc. | 140,286 | |||||||||
7,814 | Colgate-Palmolive Co. | 657,157 | |||||||||
7,020 | ConAgra Foods, Inc. | 171,779 | |||||||||
3,162 | Constellation Brands, Inc., Class A* | 57,770 | |||||||||
6,955 | Costco Wholesale Corp. | 410,901 | |||||||||
22,005 | CVS Caremark Corp. | 812,645 | |||||||||
2,870 | Dean Foods Co.* | 45,059 | |||||||||
4,023 | Dr Pepper Snapple Group, Inc. | 131,673 | |||||||||
1,870 | Estee Lauder Cos., Inc. (The), Class A | 123,270 | |||||||||
5,216 | General Mills, Inc. | 371,275 |
See Notes to Financial Statements.
47
Schedule of Investments (Continued)
PowerShares S&P 500 BuyWrite Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests(<) (Continued) | |||||||||||
5,006 | H.J. Heinz Co. | $ | 234,631 | ||||||||
2,634 | Hershey Co. (The) | 123,824 | |||||||||
1,100 | Hormel Foods Corp. | 44,836 | |||||||||
1,884 | J.M. Smucker Co. (The) | 115,056 | |||||||||
4,036 | Kellogg Co. | 221,738 | |||||||||
6,591 | Kimberly-Clark Corp. | 403,765 | |||||||||
27,482 | Kraft Foods, Inc., Class A | 813,467 | |||||||||
10,289 | Kroger Co. (The) | 228,724 | |||||||||
2,451 | Lorillard, Inc. | 192,085 | |||||||||
2,092 | McCormick & Co., Inc. | 82,780 | |||||||||
3,237 | Mead Johnson Nutrition Co., Class A | 167,062 | |||||||||
2,508 | Molson Coors Brewing Co., Class B | 111,255 | |||||||||
25,834 | PepsiCo, Inc.(>) | 1,684,893 | |||||||||
29,734 | Philip Morris International, Inc.(>) | 1,459,345 | |||||||||
45,916 | Procter & Gamble Co. (The) | 2,854,139 | |||||||||
2,675 | Reynolds American, Inc. | 142,898 | |||||||||
6,155 | Safeway, Inc. | 145,258 | |||||||||
11,040 | Sara Lee Corp. | 156,989 | |||||||||
3,356 | SUPERVALU, Inc. | 50,004 | |||||||||
9,381 | Sysco Corp. | 295,877 | |||||||||
4,829 | Tyson Foods, Inc., Class A | 94,600 | |||||||||
15,597 | Walgreen Co. | 548,235 | |||||||||
33,729 | Wal-Mart Stores, Inc.(>) | 1,809,561 | |||||||||
2,697 | Whole Foods Market, Inc.* | 105,237 | |||||||||
18,507,212 | |||||||||||
Energy—11.3% | |||||||||||
7,798 | Anadarko Petroleum Corp. | 484,724 | |||||||||
5,328 | Apache Corp. | 542,177 | |||||||||
6,798 | Baker Hughes, Inc.(>) | 338,269 | |||||||||
1,640 | Cabot Oil & Gas Corp. | 59,253 | |||||||||
3,870 | Cameron International Corp.* | 152,710 | |||||||||
10,320 | Chesapeake Energy Corp. | 245,616 | |||||||||
31,748 | Chevron Corp.(>) | 2,585,557 | |||||||||
23,504 | ConocoPhillips(>) | 1,391,202 | |||||||||
3,477 | CONSOL Energy, Inc. | 155,352 | |||||||||
6,261 | Denbury Resources, Inc.* | 119,898 | |||||||||
7,074 | Devon Energy Corp. | 476,292 | |||||||||
1,100 | Diamond Offshore Drilling, Inc. | 87,010 | |||||||||
11,104 | El Paso Corp. | 134,358 | |||||||||
3,999 | EOG Resources, Inc. | 448,368 | |||||||||
74,633 | Exxon Mobil Corp.(>) | 5,063,849 | |||||||||
1,931 | FMC Technologies, Inc.* | 130,709 | |||||||||
14,329 | Halliburton Co. | 439,184 | |||||||||
1,673 | Helmerich & Payne, Inc. | 67,957 | |||||||||
4,611 | Hess Corp. | 293,029 | |||||||||
11,208 | Marathon Oil Corp. | 360,337 | |||||||||
1,606 | Massey Energy Co. | 58,828 | |||||||||
3,026 | Murphy Oil Corp. | 182,014 | |||||||||
4,506 | Nabors Industries Ltd. (Bermuda)* | 97,194 | |||||||||
6,624 | National Oilwell Varco, Inc. | 291,655 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests(<) (Continued) | |||||||||||
2,761 | Noble Energy, Inc. | $ | 210,940 | ||||||||
12,835 | Occidental Petroleum Corp.(>) | 1,137,951 | |||||||||
4,255 | Peabody Energy Corp. | 198,794 | |||||||||
1,829 | Pioneer Natural Resources Co. | 117,294 | |||||||||
2,519 | Range Resources Corp. | 120,308 | |||||||||
1,802 | Rowan Cos., Inc.* | 53,700 | |||||||||
18,916 | Schlumberger Ltd.(>) | 1,350,981 | |||||||||
3,932 | Smith International, Inc. | 187,792 | |||||||||
5,479 | Southwestern Energy Co.* | 217,407 | |||||||||
10,251 | Spectra Energy Corp. | 239,258 | |||||||||
1,851 | Sunoco, Inc. | 60,676 | |||||||||
2,226 | Tesoro Corp. | 29,272 | |||||||||
8,942 | Valero Energy Corp. | 185,904 | |||||||||
9,239 | Williams Cos., Inc. (The) | 218,133 | |||||||||
9,235 | XTO Energy, Inc. | 438,847 | |||||||||
18,972,799 | |||||||||||
Financials—16.7% | |||||||||||
7,427 | Aflac, Inc. | 378,480 | |||||||||
8,495 | Allstate Corp. (The) | 277,532 | |||||||||
18,938 | American Express Co. | 873,421 | |||||||||
2,136 | American International Group, Inc.* | 83,090 | |||||||||
4,045 | Ameriprise Financial, Inc. | 187,526 | |||||||||
4,224 | Aon Corp. | 179,351 | |||||||||
1,854 | Apartment Investment & Management Co., Class A REIT | 41,548 | |||||||||
1,844 | Assurant, Inc. | 67,177 | |||||||||
1,291 | AvalonBay Communities, Inc. REIT | 134,316 | |||||||||
158,585 | Bank of America Corp.(>) | 2,827,570 | |||||||||
19,120 | Bank of New York Mellon Corp. (The) | 595,206 | |||||||||
10,935 | BB&T Corp. | 363,479 | |||||||||
26,160 | Berkshire Hathaway, Inc., Class B*(>) | 2,014,320 | |||||||||
2,199 | Boston Properties, Inc. REIT | 173,413 | |||||||||
7,208 | Capital One Financial Corp. | 312,899 | |||||||||
4,280 | CB Richard Ellis Group, Inc., Class A* | 74,130 | |||||||||
15,478 | Charles Schwab Corp. (The) | 298,571 | |||||||||
5,202 | Chubb Corp. (The) | 275,030 | |||||||||
2,579 | Cincinnati Financial Corp. | 73,244 | |||||||||
310,610 | Citigroup, Inc.*(>) | 1,357,366 | |||||||||
1,055 | CME Group, Inc. | 346,472 | |||||||||
2,755 | Comerica, Inc. | 115,710 | |||||||||
8,607 | Discover Financial Services | 133,064 | |||||||||
30,319 | E*TRADE Financial Corp.* | 50,936 | |||||||||
4,462 | Equity Residential REIT | 201,995 | |||||||||
1,401 | Federated Investors, Inc., Class B | 33,792 | |||||||||
12,587 | Fifth Third Bancorp | 187,672 | |||||||||
3,565 | First Horizon National Corp.* | 50,445 | |||||||||
2,348 | Franklin Resources, Inc. | 271,523 | |||||||||
7,743 | Genworth Financial, Inc., Class A* | 127,914 | |||||||||
8,319 | Goldman Sachs Group, Inc. (The)(>) | 1,207,919 | |||||||||
7,025 | Hartford Financial Services Group, Inc. (The) | 200,704 |
See Notes to Financial Statements.
48
Schedule of Investments (Continued)
PowerShares S&P 500 BuyWrite Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests(<) (Continued) | |||||||||||
4,651 | HCP, Inc. REIT | $ | 149,390 | ||||||||
1,958 | Health Care, Inc. REIT | 87,973 | |||||||||
10,341 | Host Hotels & Resorts, Inc. REIT | 168,145 | |||||||||
7,502 | Hudson City Bancorp, Inc. | 99,777 | |||||||||
11,343 | Huntington Bancshares, Inc. | 76,792 | |||||||||
1,165 | IntercontinentalExchange, Inc.* | 135,874 | |||||||||
6,788 | Invesco Ltd.(~) | 156,056 | |||||||||
2,907 | Janus Capital Group, Inc.* | 40,930 | |||||||||
62,805 | JPMorgan Chase & Co.(>) | 2,674,237 | |||||||||
13,903 | KeyCorp | 125,405 | |||||||||
6,420 | Kimco Realty Corp. REIT | 100,088 | |||||||||
2,573 | Legg Mason, Inc. | 81,538 | |||||||||
3,004 | Leucadia National Corp.* | 76,031 | |||||||||
4,785 | Lincoln National Corp. | 146,373 | |||||||||
5,618 | Loews Corp. | 209,214 | |||||||||
1,314 | M&T Bank Corp. | 114,778 | |||||||||
8,426 | Marsh & McLennan Cos., Inc. | 204,078 | |||||||||
8,338 | Marshall & Ilsley Corp. | 75,876 | |||||||||
12,968 | MetLife, Inc. | 591,081 | |||||||||
3,113 | Moody's Corp. | 76,953 | |||||||||
22,125 | Morgan Stanley | 668,617 | |||||||||
2,342 | NASDAQ OMX Group, Inc. (The)* | 49,182 | |||||||||
3,826 | Northern Trust Corp. | 210,353 | |||||||||
4,131 | NYSE Euronext | 134,794 | |||||||||
5,879 | People's United Financial, Inc. | 91,301 | |||||||||
2,577 | Plum Creek Timber Co., Inc. REIT | 102,565 | |||||||||
8,181 | PNC Financial Services Group, Inc. | 549,845 | |||||||||
5,057 | Principal Financial Group, Inc. | 147,765 | |||||||||
10,632 | Progressive Corp. (The) | 213,597 | |||||||||
7,507 | ProLogis REIT | 98,867 | |||||||||
7,362 | Prudential Financial, Inc. | 467,929 | |||||||||
2,147 | Public Storage REIT | 208,066 | |||||||||
18,882 | Regions Financial Corp. | 166,917 | |||||||||
4,591 | Simon Property Group, Inc. REIT | 408,691 | |||||||||
7,682 | SLM Corp.* | 94,028 | |||||||||
7,842 | State Street Corp. | 341,127 | |||||||||
7,906 | SunTrust Banks, Inc. | 234,018 | |||||||||
4,100 | T. Rowe Price Group, Inc. | 235,791 | |||||||||
1,311 | Torchmark Corp. | 70,191 | |||||||||
8,130 | Travelers Cos., Inc. (The) | 412,516 | |||||||||
30,279 | U.S. Bancorp | 810,569 | |||||||||
5,261 | Unum Group | 128,737 | |||||||||
2,480 | Ventas, Inc. REIT | 117,130 | |||||||||
2,496 | Vornado Realty Trust REIT | 208,091 | |||||||||
81,896 | Wells Fargo & Co.(>) | 2,711,577 | |||||||||
5,416 | XL Capital Ltd., Class A | 96,405 | |||||||||
2,381 | Zions Bancorp | 68,406 | |||||||||
27,953,479 | |||||||||||
Health Care—11.7% | |||||||||||
24,544 | Abbott Laboratories(>) | 1,255,671 | |||||||||
6,824 | Aetna, Inc. | 201,649 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests(<) (Continued) | |||||||||||
4,868 | Allergan, Inc. | $ | 310,043 | ||||||||
4,471 | AmerisourceBergen Corp. | 137,930 | |||||||||
15,498 | Amgen, Inc.* | 888,965 | |||||||||
9,541 | Baxter International, Inc. | 450,526 | |||||||||
3,731 | Becton, Dickinson and Co. | 284,937 | |||||||||
4,268 | Biogen Idec, Inc.* | 227,271 | |||||||||
23,928 | Boston Scientific Corp.* | 164,625 | |||||||||
27,127 | Bristol-Myers Squibb Co. | 686,042 | |||||||||
1,514 | C.R. Bard, Inc. | 131,006 | |||||||||
5,722 | Cardinal Health, Inc. | 198,496 | |||||||||
2,807 | CareFusion Corp.* | 77,417 | |||||||||
7,278 | Celgene Corp.* | 450,872 | |||||||||
1,186 | Cephalon, Inc.* | 76,141 | |||||||||
1,074 | Cerner Corp.* | 91,193 | |||||||||
4,353 | CIGNA Corp. | 139,557 | |||||||||
2,344 | Coventry Health Care, Inc.* | 55,647 | |||||||||
1,633 | DaVita, Inc.* | 101,948 | |||||||||
2,330 | DENTSPLY International, Inc. | 85,371 | |||||||||
16,059 | Eli Lilly & Co. | 561,583 | |||||||||
4,358 | Express Scripts, Inc.* | 436,367 | |||||||||
4,786 | Forest Laboratories, Inc.* | 130,466 | |||||||||
4,212 | Genzyme Corp.* | 224,247 | |||||||||
14,296 | Gilead Sciences, Inc.* | 567,122 | |||||||||
2,594 | Hospira, Inc.* | 139,531 | |||||||||
2,695 | Humana, Inc.* | 123,215 | |||||||||
616 | Intuitive Surgical, Inc.* | 222,105 | |||||||||
43,502 | Johnson & Johnson(>) | 2,797,179 | |||||||||
3,933 | King Pharmaceuticals, Inc.* | 38,543 | |||||||||
1,657 | Laboratory Corp. of America Holdings* | 130,191 | |||||||||
2,862 | Life Technologies Corp.* | 156,580 | |||||||||
4,264 | McKesson Corp. | 276,350 | |||||||||
7,347 | Medco Health Solutions, Inc.* | 432,885 | |||||||||
17,481 | Medtronic, Inc. | 763,745 | |||||||||
49,247 | Merck & Co., Inc.(>) | 1,725,615 | |||||||||
886 | Millipore Corp.* | 94,049 | |||||||||
4,855 | Mylan, Inc.* | 106,956 | |||||||||
1,477 | Patterson Cos., Inc. | 47,249 | |||||||||
1,861 | PerkinElmer, Inc. | 46,618 | |||||||||
127,576 | Pfizer, Inc.(>) | 2,133,071 | |||||||||
2,379 | Quest Diagnostics, Inc. | 135,984 | |||||||||
5,152 | St. Jude Medical, Inc.* | 210,305 | |||||||||
4,474 | Stryker Corp. | 256,987 | |||||||||
6,855 | Tenet Healthcare Corp.* | 42,844 | |||||||||
6,482 | Thermo Fisher Scientific, Inc.* | 358,325 | |||||||||
18,326 | UnitedHealth Group, Inc. | 555,461 | |||||||||
1,961 | Varian Medical Systems, Inc.* | 110,561 | |||||||||
1,481 | Waters Corp.* | 106,617 | |||||||||
1,686 | Watson Pharmaceuticals, Inc.* | 72,195 | |||||||||
7,028 | WellPoint, Inc.* | 378,106 | |||||||||
3,371 | Zimmer Holdings, Inc.* | 205,328 | |||||||||
19,601,687 |
See Notes to Financial Statements.
49
Schedule of Investments (Continued)
PowerShares S&P 500 BuyWrite Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests(<) (Continued) | |||||||||||
Industrials—10.9% | |||||||||||
11,251 | 3M Co.(>) | $ | 997,626 | ||||||||
1,773 | Avery Dennison Corp. | 69,200 | |||||||||
11,979 | Boeing Co. (The) | 867,639 | |||||||||
2,637 | C.H. Robinson Worldwide, Inc. | 159,011 | |||||||||
9,886 | Caterpillar, Inc. | 673,138 | |||||||||
2,081 | Cintas Corp. | 56,707 | |||||||||
6,175 | CSX Corp. | 346,109 | |||||||||
3,187 | Cummins, Inc. | 230,197 | |||||||||
4,148 | Danaher Corp. | 349,593 | |||||||||
6,712 | Deere & Co. | 401,512 | |||||||||
2,949 | Dover Corp. | 153,997 | |||||||||
807 | Dun & Bradstreet Corp. (The) | 62,115 | |||||||||
2,618 | Eaton Corp. | 202,005 | |||||||||
11,908 | Emerson Electric Co. | 621,955 | |||||||||
2,000 | Equifax, Inc. | 67,200 | |||||||||
3,358 | Expeditors International of Washington, Inc. | 136,805 | |||||||||
2,077 | Fastenal Co. | 113,591 | |||||||||
4,954 | FedEx Corp. | 445,910 | |||||||||
769 | First Solar, Inc.* | 110,390 | |||||||||
883 | Flowserve Corp. | 101,174 | |||||||||
2,831 | Fluor Corp. | 149,590 | |||||||||
6,106 | General Dynamics Corp. | 466,254 | |||||||||
168,667 | General Electric Co.(>) | 3,181,060 | |||||||||
1,982 | Goodrich Corp. | 147,025 | |||||||||
12,104 | Honeywell International, Inc. | 574,577 | |||||||||
6,125 | Illinois Tool Works, Inc. | 312,988 | |||||||||
2,869 | Iron Mountain, Inc. | 72,155 | |||||||||
2,895 | ITT Corp. | 160,875 | |||||||||
1,971 | Jacobs Engineering Group, Inc.* | 95,042 | |||||||||
1,829 | L-3 Communications Holdings, Inc. | 171,140 | |||||||||
4,993 | Lockheed Martin Corp. | 423,856 | |||||||||
5,680 | Masco Corp. | 92,186 | |||||||||
5,852 | Norfolk Southern Corp. | 347,199 | |||||||||
4,793 | Northrop Grumman Corp. | 325,109 | |||||||||
5,766 | PACCAR, Inc. | 268,234 | |||||||||
1,858 | Pall Corp. | 72,443 | |||||||||
2,546 | Parker Hannifin Corp. | 176,132 | |||||||||
3,284 | Pitney Bowes, Inc. | 83,414 | |||||||||
2,242 | Precision Castparts Corp. | 287,738 | |||||||||
3,325 | Quanta Services, Inc.* | 66,932 | |||||||||
3,253 | R.R. Donnelley & Sons Co. | 69,907 | |||||||||
6,001 | Raytheon Co. | 349,858 | |||||||||
5,127 | Republic Services, Inc. | 159,091 | |||||||||
2,353 | Robert Half International, Inc. | 64,425 | |||||||||
2,260 | Rockwell Automation, Inc. | 137,227 | |||||||||
2,488 | Rockwell Collins, Inc. | 161,720 | |||||||||
1,483 | Roper Industries, Inc. | 90,493 | |||||||||
845 | Ryder System, Inc. | 39,309 | |||||||||
914 | Snap-On, Inc. | 44,037 | |||||||||
11,768 | Southwest Airlines Co. | 155,102 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests(<) (Continued) | |||||||||||
1,342 | Stericycle, Inc.* | $ | 79,044 | ||||||||
4,316 | Textron, Inc. | 98,578 | |||||||||
7,996 | Union Pacific Corp. | 604,977 | |||||||||
15,695 | United Parcel Service, Inc., Class B(>) | 1,085,152 | |||||||||
14,803 | United Technologies Corp.(>) | 1,109,485 | |||||||||
974 | W.W. Grainger, Inc. | 107,666 | |||||||||
7,678 | Waste Management, Inc. | 266,273 | |||||||||
18,262,167 | |||||||||||
Information Technology—19.1% | |||||||||||
8,298 | Adobe Systems, Inc.* | 278,730 | |||||||||
8,939 | Advanced Micro Devices, Inc.* | 80,987 | |||||||||
5,522 | Agilent Technologies, Inc.* | 200,228 | |||||||||
2,724 | Akamai Technologies, Inc.* | 105,773 | |||||||||
4,708 | Altera Corp. | 119,395 | |||||||||
2,742 | Amphenol Corp., Class A | 126,708 | |||||||||
4,713 | Analog Devices, Inc. | 141,060 | |||||||||
14,335 | Apple, Inc.*(>) | 3,743,155 | |||||||||
21,265 | Applied Materials, Inc. | 293,032 | |||||||||
3,637 | Autodesk, Inc.* | 123,694 | |||||||||
7,993 | Automatic Data Processing, Inc. | 346,576 | |||||||||
2,891 | BMC Software, Inc.* | 113,790 | |||||||||
6,826 | Broadcom Corp., Class A | 235,429 | |||||||||
6,257 | CA, Inc. | 142,722 | |||||||||
90,510 | Cisco Systems, Inc.*(>) | 2,436,529 | |||||||||
2,910 | Citrix Systems, Inc.* | 136,770 | |||||||||
4,711 | Cognizant Technology Solutions Corp., Class A* | 241,109 | |||||||||
2,431 | Computer Sciences Corp.* | 127,360 | |||||||||
3,600 | Compuware Corp.* | 30,960 | |||||||||
24,680 | Corning, Inc. | 475,090 | |||||||||
27,261 | Dell, Inc.* | 441,083 | |||||||||
17,892 | eBay, Inc.* | 426,008 | |||||||||
5,172 | Electronic Arts, Inc.* | 100,182 | |||||||||
32,485 | EMC Corp.* | 617,540 | |||||||||
5,224 | Fidelity National Information Services, Inc. | 137,339 | |||||||||
2,411 | Fiserv, Inc.* | 123,178 | |||||||||
2,420 | FLIR Systems, Inc.* | 74,028 | |||||||||
3,820 | Google, Inc., Class A*(>) | 2,007,181 | |||||||||
2,071 | Harris Corp. | 106,615 | |||||||||
37,213 | Hewlett-Packard Co. | 1,933,960 | |||||||||
87,323 | Intel Corp.(>) | 1,993,584 | |||||||||
20,535 | International Business Machines Corp.(>) | 2,649,015 | |||||||||
4,969 | Intuit, Inc.* | 179,679 | |||||||||
3,057 | Jabil Circuit, Inc. | 46,833 | |||||||||
3,538 | JDS Uniphase Corp.* | 45,959 | |||||||||
8,318 | Juniper Networks, Inc.* | 236,314 | |||||||||
2,723 | KLA-Tencor Corp. | 92,745 | |||||||||
1,236 | Lexmark International, Inc., Class A* | 45,794 | |||||||||
3,538 | Linear Technology Corp. | 106,352 | |||||||||
10,395 | LSI Corp.* | 62,578 | |||||||||
1,527 | MasterCard, Inc., Class A | 378,757 |
See Notes to Financial Statements.
50
Schedule of Investments (Continued)
PowerShares S&P 500 BuyWrite Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests(<) (Continued) | |||||||||||
2,512 | McAfee, Inc.* | $ | 87,292 | ||||||||
3,599 | MEMC Electronic Materials, Inc.* | 46,679 | |||||||||
2,917 | Microchip Technology, Inc. | 85,205 | |||||||||
13,468 | Micron Technology, Inc.* | 125,926 | |||||||||
120,619 | Microsoft Corp.(>) | 3,683,704 | |||||||||
2,146 | Molex, Inc. | 48,092 | |||||||||
1,988 | Monster Worldwide, Inc.* | 34,651 | |||||||||
36,618 | Motorola, Inc.* | 258,889 | |||||||||
3,765 | National Semiconductor Corp. | 55,647 | |||||||||
5,457 | NetApp, Inc.* | 189,194 | |||||||||
5,514 | Novell, Inc.* | 30,933 | |||||||||
1,518 | Novellus Systems, Inc.* | 39,772 | |||||||||
8,785 | NVIDIA Corp.* | 138,100 | |||||||||
61,789 | Oracle Corp.(>) | 1,596,628 | |||||||||
5,092 | Paychex, Inc. | 155,815 | |||||||||
1,803 | QLogic Corp.* | 34,924 | |||||||||
26,567 | QUALCOMM, Inc.(>) | 1,029,205 | |||||||||
2,987 | Red Hat, Inc.* | 89,222 | |||||||||
4,826 | SAIC, Inc.* | 84,021 | |||||||||
1,740 | Salesforce.com, Inc.* | 148,944 | |||||||||
3,621 | SanDisk Corp.* | 144,442 | |||||||||
12,764 | Symantec Corp.* | 214,052 | |||||||||
6,085 | Tellabs, Inc. | 55,252 | |||||||||
2,639 | Teradata Corp.* | 76,716 | |||||||||
2,805 | Teradyne, Inc.* | 34,305 | |||||||||
19,662 | Texas Instruments, Inc. | 511,409 | |||||||||
3,122 | Total System Services, Inc. | 49,983 | |||||||||
2,904 | VeriSign, Inc.* | 79,192 | |||||||||
7,064 | Visa, Inc., Class A | 637,385 | |||||||||
3,619 | Western Digital Corp.* | 148,705 | |||||||||
10,809 | Western Union Co. (The) | 197,264 | |||||||||
21,404 | Xerox Corp. | 233,304 | |||||||||
4,380 | Xilinx, Inc. | 112,916 | |||||||||
18,843 | Yahoo!, Inc.* | 311,475 | |||||||||
32,073,064 | |||||||||||
Materials—3.5% | |||||||||||
3,358 | Air Products & Chemicals, Inc. | 257,827 | |||||||||
1,309 | Airgas, Inc. | 83,056 | |||||||||
1,738 | AK Steel Holding Corp. | 29,112 | |||||||||
16,153 | Alcoa, Inc. | 217,096 | |||||||||
1,555 | Allegheny Technologies, Inc. | 83,146 | |||||||||
1,489 | Ball Corp. | 79,230 | |||||||||
1,725 | Bemis Co., Inc. | 52,457 | |||||||||
1,097 | CF Industries Holdings, Inc. | 91,786 | |||||||||
2,140 | Cliffs Natural Resources, Inc. | 133,814 | |||||||||
18,212 | Dow Chemical Co. (The) | 561,476 | |||||||||
14,303 | E.I. du Pont de Nemours & Co. | 569,832 | |||||||||
1,151 | Eastman Chemical Co. | 77,025 | |||||||||
3,740 | Ecolab, Inc. | 182,662 | |||||||||
1,148 | FMC Corp. | 73,059 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests(<) (Continued) | |||||||||||
6,817 | Freeport-McMoRan Copper & Gold, Inc. | $ | 514,888 | ||||||||
1,251 | International Flavors & Fragrances, Inc. | 62,663 | |||||||||
6,856 | International Paper Co. | 183,329 | |||||||||
2,711 | MeadWestvaco Corp. | 73,658 | |||||||||
8,635 | Monsanto Co. | 544,523 | |||||||||
7,773 | Newmont Mining Corp. | 435,910 | |||||||||
4,986 | Nucor Corp. | 225,966 | |||||||||
2,669 | Owens-Illinois, Inc.* | 94,589 | |||||||||
2,095 | Pactiv Corp.* | 53,234 | |||||||||
2,625 | PPG Industries, Inc. | 184,721 | |||||||||
4,850 | Praxair, Inc. | 406,284 | |||||||||
2,516 | Sealed Air Corp. | 54,094 | |||||||||
1,928 | Sigma-Aldrich Corp. | 114,330 | |||||||||
1,336 | Titanium Metals Corp.* | 20,601 | |||||||||
2,270 | United States Steel Corp. | 124,078 | |||||||||
2,000 | Vulcan Materials Co. | 114,560 | |||||||||
3,346 | Weyerhaeuser Co. | 165,694 | |||||||||
5,864,700 | |||||||||||
Telecommunication Services—2.7% | |||||||||||
6,375 | American Tower Corp., Class A* | 260,164 | |||||||||
93,299 | AT&T, Inc.(>) | 2,431,372 | |||||||||
4,742 | CenturyTel, Inc. | 161,750 | |||||||||
4,945 | Frontier Communications Corp. | 39,362 | |||||||||
4,132 | MetroPCS Communications, Inc.* | 31,527 | |||||||||
23,559 | Qwest Communications International, Inc. | 123,213 | |||||||||
47,139 | Sprint Nextel Corp.* | 200,341 | |||||||||
44,827 | Verizon Communications, Inc.(>) | 1,295,052 | |||||||||
7,233 | Windstream Corp. | 79,925 | |||||||||
4,622,706 | |||||||||||
Utilities—3.5% | |||||||||||
10,584 | AES Corp. (The)* | 122,139 | |||||||||
2,685 | Allegheny Energy, Inc. | 58,479 | |||||||||
3,750 | Ameren Corp. | 97,350 | |||||||||
7,568 | American Electric Power Co., Inc. | 259,582 | |||||||||
6,218 | CenterPoint Energy, Inc. | 89,290 | |||||||||
3,638 | CMS Energy Corp. | 59,154 | |||||||||
4,454 | Consolidated Edison, Inc. | 201,321 | |||||||||
3,183 | Constellation Energy Group, Inc. | 112,519 | |||||||||
9,501 | Dominion Resources, Inc. | 397,142 | |||||||||
2,611 | DTE Energy Co. | 125,772 | |||||||||
20,729 | Duke Energy Corp. | 347,833 | |||||||||
5,158 | Edison International | 177,280 | |||||||||
2,995 | Entergy Corp. | 243,464 | |||||||||
2,277 | EQT Corp. | 99,027 | |||||||||
10,448 | Exelon Corp. | 455,428 | |||||||||
4,826 | FirstEnergy Corp. | 182,761 | |||||||||
6,544 | FPL Group, Inc. | 340,615 | |||||||||
1,211 | Integrys Energy Group, Inc. | 60,078 | |||||||||
716 | Nicor, Inc. | 31,153 | |||||||||
4,382 | NiSource, Inc. | 71,427 |
See Notes to Financial Statements.
51
Schedule of Investments (Continued)
PowerShares S&P 500 BuyWrite Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests(<) (Continued) | |||||||||||
2,778 | Northeast Utilities | $ | 77,201 | ||||||||
4,146 | NRG Energy, Inc.* | 100,209 | |||||||||
1,670 | ONEOK, Inc. | 82,064 | |||||||||
3,520 | Pepco Holdings, Inc. | 58,925 | |||||||||
5,879 | PG&E Corp. | 257,500 | |||||||||
1,701 | Pinnacle West Capital Corp. | 63,515 | |||||||||
5,969 | PPL Corp. | 147,792 | |||||||||
4,505 | Progress Energy, Inc. | 179,840 | |||||||||
8,010 | Public Service Enterprise Group, Inc. | 257,361 | |||||||||
2,764 | Questar Corp. | 132,534 | |||||||||
1,765 | SCANA Corp. | 69,665 | |||||||||
3,911 | Sempra Energy | 192,343 | |||||||||
12,988 | Southern Co. | 448,865 | |||||||||
3,385 | TECO Energy, Inc. | 57,308 | |||||||||
1,850 | Wisconsin Energy Corp. | 97,143 | |||||||||
7,229 | Xcel Energy, Inc. | 157,231 | |||||||||
5,911,310 | |||||||||||
Total Investments (Cost $137,298,505)—101.1% | 169,678,793 | ||||||||||
Liabilities in excess of other assets—(1.1%) | (1,838,965 | ) | |||||||||
Net Assets—100.0% | $ | 167,839,828 |
Investment Abbreviations:
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
* Non-income producing security.
(<) Except as otherwise noted, a portion of all securities in the portfolio are subject to call options when written. See Note 2H.
(>) Security not subject to call options written.
(~) Affiliated company. The Fund's Advisor is a subsidiary of Invesco Ltd. and therefore, Invesco Ltd. is considered to be affiliated with the Fund. See Note 6.
See Notes to Financial Statements.
52
Schedule of Investments
PowerShares Value Line Industry Rotation Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.1% | |||||||||||
Agriculture—2.3% | |||||||||||
3,356 | British American Tobacco PLC ADR (United Kingdom) | $ | 212,938 | ||||||||
4,370 | Reynolds American, Inc. | 233,446 | |||||||||
446,384 | |||||||||||
Airlines—1.3% | |||||||||||
11,564 | Continental Airlines, Inc., Class B* | 258,455 | |||||||||
Apparel—4.7% | |||||||||||
2,270 | Deckers Outdoor Corp.* | 319,117 | |||||||||
2,868 | Polo Ralph Lauren Corp. | 257,833 | |||||||||
5,600 | Steven Madden Ltd.* | 324,576 | |||||||||
901,526 | |||||||||||
Auto Parts & Equipment—3.0% | |||||||||||
8,162 | Fuel Systems Solutions, Inc.* | 256,858 | |||||||||
9,844 | TRW Automotive Holdings Corp.* | 317,075 | |||||||||
573,933 | |||||||||||
Beverages—2.8% | |||||||||||
4,914 | Boston Beer Co., Inc., Class A* | 280,147 | |||||||||
30,636 | Cott Corp. (Canada)* | 256,423 | |||||||||
536,570 | |||||||||||
Chemicals—4.3% | |||||||||||
6,226 | Albemarle Corp. | 284,279 | |||||||||
5,076 | Ashland, Inc. | 302,327 | |||||||||
7,962 | Dow Chemical Co. (The) | 245,468 | |||||||||
832,074 | |||||||||||
Coal—2.4% | |||||||||||
5,120 | Alpha Natural Resources, Inc.* | 241,050 | |||||||||
4,877 | CONSOL Energy, Inc. | 217,904 | |||||||||
458,954 | |||||||||||
Commercial Services—5.4% | |||||||||||
4,108 | Alliance Data Systems Corp.* | 308,347 | |||||||||
11,092 | Corrections Corp. of America* | 229,826 | |||||||||
3,754 | DeVry, Inc. | 234,212 | |||||||||
11,338 | PAREXEL International Corp.* | 267,350 | |||||||||
1,039,735 | |||||||||||
Computers—4.9% | |||||||||||
23,280 | Agilysys, Inc. | 252,588 | |||||||||
4,144 | Infosys Technologies Ltd. ADR (India) | 248,143 | |||||||||
11,320 | Seagate Technology (Cayman Islands)* | 207,948 | |||||||||
5,638 | Western Digital Corp.* | 231,666 | |||||||||
940,345 | |||||||||||
Cosmetics/Personal Care—2.5% | |||||||||||
3,919 | Estee Lauder Cos., Inc. (The), Class A | 258,340 | |||||||||
3,637 | Procter & Gamble Co. (The) | 226,076 | |||||||||
484,416 | |||||||||||
Electric—1.2% | |||||||||||
11,092 | Avista Corp. | 239,920 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
Electronics—1.3% | |||||||||||
14,414 | Sanmina-SCI Corp.* | $ | 257,002 | ||||||||
Food—1.2% | |||||||||||
5,330 | TreeHouse Foods, Inc.* | 225,406 | |||||||||
Forest Products & Paper—1.4% | |||||||||||
9,808 | MeadWestvaco Corp. | 266,483 | |||||||||
Healthcare - Products—2.4% | |||||||||||
12,840 | Align Technology, Inc.* | 218,023 | |||||||||
671 | Intuitive Surgical, Inc.* | 241,936 | |||||||||
459,959 | |||||||||||
Healthcare - Services—2.6% | |||||||||||
3,890 | Amedisys, Inc.* | 223,986 | |||||||||
13,130 | Odyssey HealthCare, Inc.* | 273,498 | |||||||||
497,484 | |||||||||||
Home Furnishings—1.3% | |||||||||||
18,566 | La-Z-Boy, Inc.* | 242,101 | |||||||||
Household Products/Wares—2.9% | |||||||||||
12,476 | American Greetings Corp., Class A | 306,411 | |||||||||
5,086 | Tupperware Brands Corp. | 259,742 | |||||||||
566,153 | |||||||||||
Insurance—5.1% | |||||||||||
4,778 | Aflac, Inc. | 243,487 | |||||||||
11,636 | Assured Guaranty Ltd. (Bermuda) | 250,756 | |||||||||
9,418 | Greenlight Capital Re Ltd., Class A (Cayman Islands)* | 241,289 | |||||||||
4,904 | Reinsurance Group of America, Inc. | 253,193 | |||||||||
988,725 | |||||||||||
Internet—1.4% | |||||||||||
1,022 | Priceline.com, Inc.* | 267,815 | |||||||||
Investment Companies—2.7% | |||||||||||
7,148 | Central Europe and Russia Fund, Inc. (The) | 259,758 | |||||||||
13,128 | Templeton Emerging Markets Fund | 258,491 | |||||||||
518,249 | |||||||||||
Media—8.1% | |||||||||||
10,206 | Cablevision Systems Corp., Class A | 280,053 | |||||||||
6,886 | DIRECTV, Class A* | 249,480 | |||||||||
5,498 | John Wiley & Sons, Inc., Class A | 232,400 | |||||||||
44,922 | McClatchy Co. (The), Class A* | 244,825 | |||||||||
17,454 | News Corp., Class A | 269,141 | |||||||||
7,844 | Viacom, Inc., Class B* | 277,128 | |||||||||
1,553,027 | |||||||||||
Mining—2.8% | |||||||||||
3,122 | Freeport-McMoRan Copper & Gold, Inc. | 235,805 | |||||||||
15,580 | Silver Wheaton Corp. (Canada)* | 304,121 | |||||||||
539,926 |
See Notes to Financial Statements.
53
Schedule of Investments (Continued)
PowerShares Value Line Industry Rotation Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
Miscellaneous Manufacturing—1.2% | |||||||||||
5,972 | Pall Corp. | $ | 232,848 | ||||||||
Oil & Gas—1.4% | |||||||||||
4,796 | Newfield Exploration Co.* | 279,079 | |||||||||
Pharmaceuticals—6.5% | |||||||||||
5,880 | Catalyst Health Solutions, Inc.* | 248,783 | |||||||||
6,018 | Herbalife Ltd. (Cayman Islands) | 290,369 | |||||||||
3,682 | Medco Health Solutions, Inc.* | 216,943 | |||||||||
5,156 | NBTY, Inc.* | 209,746 | |||||||||
4,696 | Perrigo Co. | 286,597 | |||||||||
1,252,438 | |||||||||||
Pipelines—1.3% | |||||||||||
7,130 | Enterprise Products Partners LP | 252,830 | |||||||||
Retail—9.1% | |||||||||||
13,898 | 99 Cents Only Stores* | 215,697 | |||||||||
7,348 | Big Lots, Inc.* | 280,693 | |||||||||
11,410 | CarMax, Inc.* | 280,344 | |||||||||
6,098 | Cash America International, Inc. | 225,992 | |||||||||
5,664 | Guess?, Inc. | 259,808 | |||||||||
8,714 | Nu Skin Enterprises, Inc., Class A | 261,943 | |||||||||
5,420 | P.F. Chang's China Bistro, Inc.* | 236,529 | |||||||||
1,761,006 | |||||||||||
Semiconductors—4.4% | |||||||||||
3,556 | Cree, Inc.* | 260,335 | |||||||||
23,870 | Teradyne, Inc.* | 291,930 | |||||||||
6,542 | Veeco Instruments, Inc.* | 287,782 | |||||||||
840,047 | |||||||||||
Software—5.5% | |||||||||||
2,840 | Cerner Corp.* | 241,144 | |||||||||
18,843 | Renaissance Learning, Inc. | 267,759 | |||||||||
3,366 | Salesforce.com, Inc.* | 288,130 | |||||||||
6,714 | Solera Holdings, Inc. | 260,973 | |||||||||
1,058,006 | |||||||||||
Telecommunications—1.3% | |||||||||||
13,374 | Corning, Inc. | 257,450 | |||||||||
Transportation—1.4% | |||||||||||
6,686 | Kansas City Southern* | 271,117 | |||||||||
Total Common Stocks and Other Equity Interests (Cost $17,217,104) | 19,299,463 |
Number of Shares | Value | ||||||||||
Money Market Fund—0.1% | |||||||||||
25,565 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $25,565) | $ | 25,565 | ||||||||
Total Investments (Cost $17,242,669)—100.2% | 19,325,028 | ||||||||||
Liabilities in excess of other assets—(0.2%) | (34,938 | ) | |||||||||
Net Assets—100.0% | $ | 19,290,090 |
Investment Abbreviations:
ADR—American Depositary Receipt
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
54
Schedule of Investments
PowerShares Value Line TimelinessTM Select Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.0% | |||||||||||
Consumer Discretionary—35.1% | |||||||||||
10,285 | Amazon.com, Inc.* | $ | 1,409,662 | ||||||||
29,425 | Bed Bath & Beyond, Inc.* | 1,352,373 | |||||||||
59,140 | CarMax, Inc.* | 1,453,070 | |||||||||
11,905 | Deckers Outdoor Corp.* | 1,673,605 | |||||||||
36,074 | DIRECTV, Class A* | 1,306,961 | |||||||||
49,070 | Dress Barn, Inc. (The)* | 1,358,258 | |||||||||
45,787 | DSW, Inc., Class A* | 1,382,767 | |||||||||
33,426 | Fossil, Inc.* | 1,300,271 | |||||||||
42,390 | Fuel Systems Solutions, Inc.* | 1,334,013 | |||||||||
34,210 | Hasbro, Inc. | 1,312,296 | |||||||||
31,800 | Jo-Ann Stores, Inc.* | 1,403,016 | |||||||||
9,814 | National Presto Industries, Inc. | 1,098,874 | |||||||||
18,620 | Netflix, Inc.* | 1,839,097 | |||||||||
16,680 | Panera Bread Co., Class A* | 1,300,039 | |||||||||
5,300 | Priceline.com, Inc.* | 1,388,865 | |||||||||
37,925 | Urban Outfitters, Inc.* | 1,422,567 | |||||||||
40,785 | Viacom, Inc., Class B* | 1,440,934 | |||||||||
23,776,668 | |||||||||||
Consumer Staples—6.0% | |||||||||||
25,665 | Boston Beer Co., Inc., Class A* | 1,463,161 | |||||||||
20,565 | Estee Lauder Cos., Inc. (The), Class A | 1,355,645 | |||||||||
20,138 | J.M. Smucker Co. (The) | 1,229,828 | |||||||||
4,048,634 | |||||||||||
Financials—3.8% | |||||||||||
62,010 | EZCORP, Inc., Class A* | 1,284,227 | |||||||||
25,695 | Reinsurance Group of America, Inc. | 1,326,633 | |||||||||
2,610,860 | |||||||||||
Health Care—23.6% | |||||||||||
43,605 | AmerisourceBergen Corp. | 1,345,214 | |||||||||
30,765 | Catalyst Health Solutions, Inc.* | 1,301,667 | |||||||||
36,365 | CIGNA Corp. | 1,165,862 | |||||||||
24,189 | Covidien PLC (Ireland) | 1,160,830 | |||||||||
13,290 | Edwards Lifesciences Corp.* | 1,369,933 | |||||||||
23,540 | Hospira, Inc.* | 1,266,217 | |||||||||
52,725 | Medicis Pharmaceutical Corp., Class A | 1,338,161 | |||||||||
68,515 | Odyssey HealthCare, Inc.* | 1,427,167 | |||||||||
58,180 | PAREXEL International Corp.* | 1,371,884 | |||||||||
24,690 | Perrigo Co. | 1,506,831 | |||||||||
22,906 | Stryker Corp. | 1,315,721 | |||||||||
24,930 | Varian Medical Systems, Inc.* | 1,405,553 | |||||||||
15,975,040 | |||||||||||
Information Technology—29.5% | |||||||||||
123,540 | Agilysys, Inc. | 1,340,409 | |||||||||
100,839 | CEVA, Inc.* | 1,234,269 | |||||||||
169,025 | Cirrus Logic, Inc.* | 2,148,308 | |||||||||
25,665 | Cognizant Technology Solutions Corp., Class A* | 1,313,535 | |||||||||
18,180 | Cree, Inc.* | 1,330,958 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
12,857 | Equinix, Inc.* | $ | 1,294,057 | ||||||||
48,705 | Informatica Corp.* | 1,218,112 | |||||||||
21,720 | Infosys Technologies Ltd. ADR (India) | 1,300,594 | |||||||||
60,927 | Marvell Technology Group Ltd. (Bermuda)* | 1,258,143 | |||||||||
39,665 | NetApp, Inc.* | 1,375,185 | |||||||||
41,547 | OSI Systems, Inc.* | 1,081,884 | |||||||||
17,600 | Salesforce.com, Inc.* | 1,506,560 | |||||||||
35,445 | Solera Holdings, Inc. | 1,377,747 | |||||||||
62,879 | TeleTech Holdings, Inc.* | 1,040,647 | |||||||||
28,703 | Western Digital Corp.* | 1,179,406 | |||||||||
19,999,814 | |||||||||||
Telecommunication Services—2.0% | |||||||||||
31,790 | NII Holdings, Inc.* | 1,348,532 | |||||||||
Total Common Stocks and Other Equity Interests (Cost $59,140,907) | 67,759,548 | ||||||||||
Money Market Fund—0.1% | |||||||||||
80,038 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $80,038) | 80,038 | |||||||||
Total Investments (Cost $59,220,945)—100.1% | 67,839,586 | ||||||||||
Liabilities in excess of other assets—(0.1%) | (94,071 | ) | |||||||||
Net Assets—100.0% | $ | 67,745,515 |
Investment Abbreviations:
ADR—American Depositary Receipt
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
55
Schedule of Investments
PowerShares Water Resources Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.0% | |||||||||||
Electronics—12.3% | |||||||||||
1,348,472 | Badger Meter, Inc.(~) | $ | 55,772,802 | ||||||||
789,901 | Itron, Inc.* | 62,884,019 | |||||||||
1,271,511 | Watts Water Technologies, Inc., Class A | 45,113,210 | |||||||||
163,770,031 | |||||||||||
Engineering & Construction—15.5% | |||||||||||
2,184,464 | Aecom Technology Corp.* | 65,686,832 | |||||||||
1,516,332 | Insituform Technologies, Inc., Class A* | 36,346,478 | |||||||||
1,425,218 | Layne Christensen Co.(~)* | 39,022,469 | |||||||||
1,296,737 | URS Corp.* | 66,587,445 | |||||||||
207,643,224 | |||||||||||
Environmental Control—10.9% | |||||||||||
2,311,439 | Calgon Carbon Corp.* | 35,827,305 | |||||||||
1,684,954 | Nalco Holding Co. | 41,668,912 | |||||||||
2,797,447 | Tetra Tech, Inc.* | 68,117,834 | |||||||||
145,614,051 | |||||||||||
Hand/Machine Tools—3.6% | |||||||||||
1,359,111 | Franklin Electric Co., Inc.(~) | 47,555,294 | |||||||||
Machinery - Diversified—17.8% | |||||||||||
485,982 | Flowserve Corp. | 55,683,818 | |||||||||
1,491,919 | Gorman-Rupp Co. (The)(~) | 41,609,621 | |||||||||
1,214,177 | IDEX Corp. | 40,796,347 | |||||||||
1,123,742 | Lindsay Corp.(~) | 42,735,908 | |||||||||
934,275 | Roper Industries, Inc. | 57,009,461 | |||||||||
237,835,155 | |||||||||||
Metal Fabricate/Hardware—9.9% | |||||||||||
8,284,655 | Mueller Water Products, Inc., Class A(~) | 46,394,068 | |||||||||
831,334 | Northwest Pipe Co.(~)* | 20,051,776 | |||||||||
782,946 | Valmont Industries, Inc. | 65,211,572 | |||||||||
131,657,416 | |||||||||||
Miscellaneous Manufacturing—18.2% | |||||||||||
829,892 | Ameron International Corp.(~) | 57,586,206 | |||||||||
751,240 | Danaher Corp. | 63,314,507 | |||||||||
755,580 | ITT Corp. | 41,987,581 | |||||||||
999,978 | Pall Corp. | 38,989,142 | |||||||||
1,150,382 | Pentair, Inc. | 41,597,813 | |||||||||
243,475,249 | |||||||||||
Water—11.8% | |||||||||||
545,827 | American States Water Co. | 20,370,264 | |||||||||
875,117 | American Water Works Co., Inc. | 19,060,048 | |||||||||
1,081,178 | Aqua America, Inc. | 19,817,993 | |||||||||
545,345 | Companhia de Saneamento Basico do Estado de Sao Paulo ADR (Brazil)* | 21,459,326 | |||||||||
1,308,782 | Consolidated Water Co. Ltd. (Cayman Islands)(~) | 18,519,265 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
1,869,580 | Veolia Environnement ADR (France) | $ | 58,312,200 | ||||||||
157,539,096 | |||||||||||
Total Common Stocks and Other Equity Interests (Cost $1,286,173,423) | 1,335,089,516 | ||||||||||
Money Market Fund—0.0% | |||||||||||
12,974 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $12,974) | 12,974 | |||||||||
Total Investments (Cost $1,286,186,397)—100.0% | 1,335,102,490 | ||||||||||
Liabilities in excess of other assets—(0.0%) | (69,191 | ) | |||||||||
Net Assets—100.0% | $ | 1,335,033,299 |
Investment Abbreviations:
ADR—American Depositary Receipt
Notes to Schedule of Investments:
(~) Affiliated Investment. See Note 6.
* Non-income producing security.
See Notes to Financial Statements.
56
Schedule of Investments
PowerShares WilderHill Clean Energy Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.0% | |||||||||||
Auto Parts & Equipment—3.8% | |||||||||||
1,161,239 | Amerigon, Inc.(~)* | $ | 11,391,755 | ||||||||
418,426 | Fuel Systems Solutions, Inc.* | 13,167,866 | |||||||||
24,559,621 | |||||||||||
Building Materials—2.0% | |||||||||||
3,375,527 | Broadwind Energy, Inc.* | 13,367,087 | |||||||||
Chemicals—9.2% | |||||||||||
193,181 | Air Products & Chemicals, Inc. | 14,832,437 | |||||||||
420,909 | OM Group, Inc.* | 15,889,315 | |||||||||
389,192 | Sociedad Quimica y Minera de Chile SA ADR (Chile) | 14,010,912 | |||||||||
1,588,483 | Zoltek Cos., Inc.* | 15,630,672 | |||||||||
60,363,336 | |||||||||||
Commercial Services—2.3% | |||||||||||
758,648 | Quanta Services, Inc.* | 15,271,584 | |||||||||
Computers—4.8% | |||||||||||
1,621,740 | Echelon Corp.* | 15,325,443 | |||||||||
1,123,417 | Maxwell Technologies, Inc.* | 16,210,907 | |||||||||
31,536,350 | |||||||||||
Electric—10.5% | |||||||||||
962,653 | Calpine Corp.* | 13,120,960 | |||||||||
186,114 | CPFL Energia SA ADR (Brazil) | 11,574,430 | |||||||||
325,086 | IDACORP, Inc. | 11,729,103 | |||||||||
565,840 | Ormat Technologies, Inc. | 18,027,662 | |||||||||
584,952 | Portland General Electric Co. | 11,628,846 | |||||||||
3,222,727 | U.S. Geothermal, Inc.* | 3,061,913 | |||||||||
69,142,914 | |||||||||||
Electrical Components & Equipment—26.4% | |||||||||||
968,121 | A123 Systems, Inc.* | 12,062,788 | |||||||||
3,700,321 | Advanced Battery Technologies, Inc.(~)* | 12,840,114 | |||||||||
458,077 | American Superconductor Corp.* | 13,366,687 | |||||||||
7,445,739 | Beacon Power Corp.* | 3,201,668 | |||||||||
710,961 | Canadian Solar, Inc. (China)* | 12,313,844 | |||||||||
1,363,460 | China BAK Battery, Inc.* | 2,740,555 | |||||||||
3,067,786 | Ener1, Inc.* | 12,761,990 | |||||||||
2,169,976 | Energy Conversion Devices, Inc.* | 15,450,229 | |||||||||
3,126,235 | JA Solar Holdings Co. Ltd. ADR (China)* | 19,101,296 | |||||||||
1,351,905 | Satcon Technology Corp.* | 3,798,853 | |||||||||
859,630 | SunPower Corp., Class A* | 14,226,876 | |||||||||
1,108,452 | Suntech Power Holdings Co. Ltd. ADR (China)* | 15,074,947 | |||||||||
1,274,924 | Universal Display Corp.* | 17,020,235 | |||||||||
3,709,881 | Valence Technology, Inc.* | 3,895,375 | |||||||||
1,248,004 | Yingli Green Energy Holding Co. Ltd. ADR (China)* | 15,762,291 | |||||||||
173,617,748 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
Electronics—3.0% | |||||||||||
202,078 | Itron, Inc.* | $ | 16,087,429 | ||||||||
874,111 | UQM Technologies, Inc.* | 3,819,865 | |||||||||
19,907,294 | |||||||||||
Energy - Alternate Sources—13.0% | |||||||||||
835,212 | Ascent Solar Technologies, Inc.* | 3,182,158 | |||||||||
4,239,866 | Ballard Power Systems, Inc. (Canada)(~)* | 9,963,685 | |||||||||
1,305,442 | Comverge, Inc.(~)* | 14,803,712 | |||||||||
134,443 | First Solar, Inc.* | 19,299,292 | |||||||||
4,400,689 | FuelCell Energy, Inc.(~)* | 12,101,895 | |||||||||
2,532,140 | Gushan Environmental Energy Ltd. ADR (China)* | 2,582,783 | |||||||||
464,412 | Ocean Power Technologies, Inc.* | 3,176,578 | |||||||||
4,493,660 | Quantum Fuel Systems Technologies Worldwide, Inc.* | 3,150,056 | |||||||||
666,486 | Trina Solar Ltd. ADR (Cayman Islands)* | 17,241,993 | |||||||||
85,502,152 | |||||||||||
Food—2.5% | |||||||||||
1,548,787 | Cosan Ltd., Class A (Brazil)* | 16,448,118 | |||||||||
Machinery - Diversified—0.4% | |||||||||||
3,282,744 | Raser Technologies, Inc.* | 2,647,205 | |||||||||
Miscellaneous Manufacturing—2.4% | |||||||||||
679,528 | STR Holdings, Inc.* | 15,669,916 | |||||||||
Semiconductors—19.7% | |||||||||||
408,357 | Aixtron AG ADR (Germany) | 12,830,577 | |||||||||
1,114,716 | Applied Materials, Inc. | 15,360,787 | |||||||||
209,971 | Cree, Inc.* | 15,371,977 | |||||||||
2,512,206 | EMCORE Corp.* | 3,366,356 | |||||||||
2,742,158 | GT Solar International, Inc.* | 15,986,781 | |||||||||
566,696 | International Rectifier Corp.* | 13,045,342 | |||||||||
1,003,089 | MEMC Electronic Materials, Inc.* | 13,010,064 | |||||||||
2,624,845 | Renesola Ltd. ADR (British Virgin Islands)* | 20,500,039 | |||||||||
740,712 | Rubicon Technology, Inc.* | 20,102,924 | |||||||||
129,574,847 | |||||||||||
Total Common Stocks and Other Equity Interests (Cost $799,449,925) | 657,608,172 |
See Notes to Financial Statements.
57
Schedule of Investments (Continued)
PowerShares WilderHill Clean Energy Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Money Market Fund—0.0% | |||||||||||
166,428 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $166,428) | $ | 166,428 | ||||||||
Total Investments (Cost $799,616,353)—100.0% | 657,774,600 | ||||||||||
Liabilities in excess of other assets—(0.0%) | (288,992 | ) | |||||||||
Net Assets—100.0% | $ | 657,485,608 |
Investment Abbreviations:
ADR—American Depositary Receipt
Notes to Schedule of Investments:
(~) Affiliated Investment. See Note 6.
* Non-income producing security.
See Notes to Financial Statements.
58
Schedule of Investments
PowerShares WilderHill Progressive Energy Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—99.9% | |||||||||||
Agriculture—2.6% | |||||||||||
42,793 | Andersons, Inc. (The) | $ | 1,546,539 | ||||||||
Auto Parts & Equipment—9.8% | |||||||||||
225,234 | Exide Technologies* | 1,337,890 | |||||||||
40,105 | Johnson Controls, Inc. | 1,347,127 | |||||||||
66,788 | Tenneco, Inc.* | 1,721,127 | |||||||||
78,263 | Westport Innovations, Inc. (Canada)* | 1,486,997 | |||||||||
5,893,141 | |||||||||||
Building Materials—3.2% | |||||||||||
55,191 | Owens Corning* | 1,919,543 | |||||||||
Chemicals—7.1% | |||||||||||
57,455 | Methanex Corp. (Canada) | 1,331,807 | |||||||||
17,184 | Praxair, Inc. | 1,439,504 | |||||||||
51,246 | Rockwood Holdings, Inc.* | 1,534,305 | |||||||||
4,305,616 | |||||||||||
Computers—2.1% | |||||||||||
43,804 | Telvent GIT SA (Spain)* | 1,265,936 | |||||||||
Electric—9.9% | |||||||||||
79,710 | Centrais Eletricas Brasileiras SA ADR (Brazil) | 1,139,056 | |||||||||
76,330 | Companhia Energetica de Minas Gerais SA ADR (Brazil) | 1,232,731 | |||||||||
41,959 | EnerNOC, Inc.* | 1,220,168 | |||||||||
58,882 | Enersis SA ADR (Chile) | 1,171,163 | |||||||||
23,991 | FPL Group, Inc. | 1,248,731 | |||||||||
6,011,849 | |||||||||||
Electrical Components & Equipment—14.1% | |||||||||||
107,688 | A-Power Energy Generation Systems Ltd.* | 1,129,647 | |||||||||
213,997 | Capstone Turbine Corp.* | 261,077 | |||||||||
25,192 | Emerson Electric Co. | 1,315,778 | |||||||||
20,183 | Energizer Holdings, Inc.* | 1,233,181 | |||||||||
51,416 | EnerSys* | 1,330,646 | |||||||||
45,988 | General Cable Corp.* | 1,313,877 | |||||||||
101,001 | GrafTech International Ltd.* | 1,702,877 | |||||||||
25,354 | SmartHeat, Inc.* | 212,720 | |||||||||
8,499,803 | |||||||||||
Electronics—4.2% | |||||||||||
37,777 | Koninklijke Philips Electronics NV (Netherlands) | 1,259,485 | |||||||||
40,482 | Woodward Governor Co. | 1,297,448 | |||||||||
2,556,933 | |||||||||||
Energy - Alternate Sources—4.5% | |||||||||||
59,010 | Clean Energy Fuels Corp.* | 1,039,756 | |||||||||
75,667 | Covanta Holding Corp.* | 1,322,659 | |||||||||
59,247 | Headwaters, Inc.* | 355,482 | |||||||||
2,717,897 | |||||||||||
Engineering & Construction—4.8% | |||||||||||
49,018 | Foster Wheeler AG (Switzerland)* | 1,469,559 | |||||||||
51,426 | McDermott International, Inc.* | 1,409,587 | |||||||||
2,879,146 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
Environmental Control—3.4% | |||||||||||
198,820 | EnergySolutions, Inc. | $ | 1,441,445 | ||||||||
35,013 | Fuel Tech, Inc.* | 262,947 | |||||||||
278,403 | Rentech, Inc.* | 348,004 | |||||||||
2,052,396 | |||||||||||
Hand/Machine Tools—2.1% | |||||||||||
33,815 | Baldor Electric Co. | 1,298,834 | |||||||||
Mining—4.6% | |||||||||||
52,349 | Cameco Corp. (Canada) | 1,288,309 | |||||||||
250,342 | USEC, Inc.* | 1,502,052 | |||||||||
2,790,361 | |||||||||||
Miscellaneous Manufacturing—10.0% | |||||||||||
17,689 | Eaton Corp. | 1,364,883 | |||||||||
39,144 | ESCO Technologies, Inc. | 1,207,592 | |||||||||
92,502 | Hexcel Corp.* | 1,498,533 | |||||||||
18,500 | LSB Industries, Inc.* | 328,560 | |||||||||
21,924 | PMFG, Inc.* | 315,267 | |||||||||
13,471 | Siemens AG ADR (Germany) | 1,315,309 | |||||||||
6,030,144 | |||||||||||
Oil & Gas—12.7% | |||||||||||
62,670 | Chesapeake Energy Corp. | 1,491,546 | |||||||||
32,986 | Questar Corp. | 1,581,679 | |||||||||
30,696 | Range Resources Corp. | 1,466,041 | |||||||||
41,357 | Sasol Ltd. ADR (South Africa) | 1,681,162 | |||||||||
37,186 | Southwestern Energy Co.* | 1,475,540 | |||||||||
7,695,968 | |||||||||||
Semiconductors—2.2% | |||||||||||
30,620 | Veeco Instruments, Inc.* | 1,346,974 | |||||||||
Telecommunications—2.6% | |||||||||||
82,110 | Corning, Inc. | 1,580,618 | |||||||||
Total Common Stocks and Other Equity Interests (Cost $53,075,157) | 60,391,698 | ||||||||||
Money Market Fund—0.1% | |||||||||||
60,796 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $60,796) | 60,796 | |||||||||
Total Investments (Cost $53,135,953)—100.0% | 60,452,494 | ||||||||||
Liabilities in excess of other assets—(0.0%) | (1,280 | ) | |||||||||
Net Assets—100.0% | $ | 60,451,214 |
Investment Abbreviations:
ADR—American Depositary Receipt
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
59
Statements of Assets and Liabilities
April 30, 2010
PowerShares Aerospace & Defense Portfolio | PowerShares CleantechTM Portfolio | PowerShares DWA Technical LeadersTM Portfolio | PowerShares Global Listed Private Equity Portfolio | PowerShares Golden Dragon Halter USX China Portfolio | PowerShares Lux Nanotech Portfolio | PowerShares NASDAQ-100 BuyWrite Portfolio | |||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||||||
Unaffiliated investments, at value | $ | 137,447,311 | $ | 160,038,970 | $ | 159,525,616 | $ | 212,896,586 | $ | 455,454,548 | $ | 55,395,829 | $ | 11,205,733 | |||||||||||||||||
Affiliated investments, at value (Note 6) | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Foreign cash, at value | — | 28,989 | — | 5,727 | — | — | — | ||||||||||||||||||||||||
Receivables: | |||||||||||||||||||||||||||||||
Dividends | 42,716 | 53,274 | 38,841 | 119,033 | 1,005,968 | 11,912 | 1,300 | ||||||||||||||||||||||||
Expense waivers | 633 | — | — | 4,048 | 41,485 | — | — | ||||||||||||||||||||||||
Investments sold | — | 2,544,630 | — | 21,647,403 | — | 503,892 | — | ||||||||||||||||||||||||
Foreign tax reclaims | — | 62,774 | — | 16,118 | — | — | — | ||||||||||||||||||||||||
Shares sold | — | — | — | 994,634 | — | — | — | ||||||||||||||||||||||||
Other assets | 3,000 | 3,000 | 3,000 | 3,000 | 3,000 | 3,000 | — | ||||||||||||||||||||||||
Total Assets | 137,493,660 | 162,731,637 | 159,567,457 | 235,686,549 | 456,505,001 | 55,914,633 | 11,207,033 | ||||||||||||||||||||||||
LIABILITES: | |||||||||||||||||||||||||||||||
Due to custodian | 6,323 | 6,438 | 5,659 | 6,675 | 102,452 | 6,064 | — | ||||||||||||||||||||||||
Payables: | |||||||||||||||||||||||||||||||
Shares repurchased | — | 2,541,761 | — | 22,593,780 | — | 529,606 | — | ||||||||||||||||||||||||
Investments purchased | — | — | — | 990,216 | 337,466 | — | — | ||||||||||||||||||||||||
Expense recapture | — | 2,538 | 3,823 | — | — | 371 | — | ||||||||||||||||||||||||
Open written options, at value | — | — | — | — | — | — | 129,963 | ||||||||||||||||||||||||
Accrued advisory fees | 55,696 | 67,074 | 63,897 | 96,620 | 188,427 | 23,672 | 6,867 | ||||||||||||||||||||||||
Accrued expenses | 94,091 | 92,674 | 122,768 | 119,800 | 353,369 | 64,849 | — | ||||||||||||||||||||||||
Total Liabilities | 156,110 | 2,710,485 | 196,147 | 23,807,091 | 981,714 | 624,562 | 136,830 | ||||||||||||||||||||||||
NET ASSETS | $ | 137,337,550 | $ | 160,021,152 | $ | 159,371,310 | $ | 211,879,458 | $ | 455,523,287 | $ | 55,290,071 | $ | 11,070,203 | |||||||||||||||||
NET ASSETS CONSIST OF: | |||||||||||||||||||||||||||||||
Shares of beneficial interest | $ | 184,986,888 | $ | 211,256,759 | $ | 286,696,813 | $ | 271,644,014 | $ | 621,693,245 | $ | 117,046,442 | $ | 10,162,383 | |||||||||||||||||
Undistributed net investment income (loss) | 126,024 | (4,993 | ) | 120,278 | 8,504 | (317,994 | ) | (4,088 | ) | — | |||||||||||||||||||||
Accumulated net realized gain (loss) on investments and foreign currency related transactions | (25,644,062 | ) | (50,852,148 | ) | (160,648,541 | ) | (83,926,414 | ) | (169,481,045 | ) | (58,747,453 | ) | (2,375,889 | ) | |||||||||||||||||
Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies | (22,131,300 | ) | (378,466 | ) | 33,202,760 | 24,153,354 | 3,629,081 | (3,004,830 | ) | 3,283,709 | |||||||||||||||||||||
Net Assets | $ | 137,337,550 | $ | 160,021,152 | $ | 159,371,310 | $ | 211,879,458 | $ | 455,523,287 | $ | 55,290,071 | $ | 11,070,203 | |||||||||||||||||
Shares outstanding (unlimited amount authorized, $0.01 par value) | 7,200,000 | 6,400,000 | 7,500,000 | 21,100,000 | 18,200,000 | 5,350,000 | 500,000 | ||||||||||||||||||||||||
Net asset value | $ | 19.07 | $ | 25.00 | $ | 21.25 | $ | 10.04 | $ | 25.03 | $ | 10.33 | $ | 22.14 | |||||||||||||||||
Share price | $ | 19.07 | $ | 24.80 | $ | 21.24 | $ | 10.06 | $ | 25.11 | $ | 10.32 | $ | 22.17 | |||||||||||||||||
Unaffiliated investments, at cost | $ | 159,578,611 | $ | 160,413,265 | $ | 126,322,856 | $ | 188,741,409 | $ | 451,825,467 | $ | 58,400,659 | $ | 7,981,774 | |||||||||||||||||
Affiliated investments, at cost | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Foreign cash, at cost | $ | — | $ | 29,203 | $ | — | $ | 5,707 | $ | — | $ | — | $ | — | |||||||||||||||||
Premium received | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 189,713 |
See Notes to Financial Statements.
60
PowerShares S&P 500 BuyWrite Portfolio | PowerShares Value Line Industry Rotation Portfolio | PowerShares Value Line TimelinessTM Select Portfolio | PowerShares Water Resources Portfolio | PowerShares WilderHill Clean Energy Portfolio | PowerShares WilderHill Progressive Energy Portfolio | ||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Unaffiliated investments, at value | $ | 169,522,737 | $ | 19,325,028 | $ | 67,839,586 | $ | 965,855,081 | $ | 596,673,439 | $ | 60,452,494 | |||||||||||||||
Affiliated investments, at value (Note 6) | 156,056 | — | — | 369,247,409 | 61,101,161 | — | |||||||||||||||||||||
Foreign cash, at value | — | — | — | — | — | — | |||||||||||||||||||||
Receivables: | |||||||||||||||||||||||||||
Dividends | 170,070 | 14,204 | 13,108 | 1,276,693 | 599,841 | 84,256 | |||||||||||||||||||||
Expense waivers | — | 6,141 | 2,032 | — | 12,272 | 5,039 | |||||||||||||||||||||
Investments sold | — | 4,046 | — | 337,240 | 1,491,676 | — | |||||||||||||||||||||
Foreign tax reclaims | — | — | — | 442,715 | — | — | |||||||||||||||||||||
Shares sold | — | — | — | — | — | — | |||||||||||||||||||||
Other assets | — | 3,000 | 3,000 | 2,000 | 2,000 | 3,000 | |||||||||||||||||||||
Total Assets | 169,848,863 | 19,352,419 | 67,857,726 | 1,337,161,138 | 659,880,389 | 60,544,789 | |||||||||||||||||||||
LIABILITES: | |||||||||||||||||||||||||||
Due to custodian | 48,258 | 6,064 | 6,063 | 15,947 | 17,213 | 6,064 | |||||||||||||||||||||
Payables: | |||||||||||||||||||||||||||
Shares repurchased | — | — | — | — | 1,527,742 | — | |||||||||||||||||||||
Investments purchased | — | — | — | 878,084 | — | — | |||||||||||||||||||||
Expense recapture | — | — | — | — | — | — | |||||||||||||||||||||
Open written options, at value | 1,857,700 | — | — | — | — | — | |||||||||||||||||||||
Accrued advisory fees | 103,077 | 8,617 | 28,935 | 546,105 | 275,732 | 25,141 | |||||||||||||||||||||
Accrued expenses | — | 47,648 | 77,213 | 687,703 | 574,094 | 62,370 | |||||||||||||||||||||
Total Liabilities | 2,009,035 | 62,329 | 112,211 | 2,127,839 | 2,394,781 | 93,575 | |||||||||||||||||||||
NET ASSETS | $ | 167,839,828 | $ | 19,290,090 | $ | 67,745,515 | $ | 1,335,033,299 | $ | 657,485,608 | $ | 60,451,214 | |||||||||||||||
NET ASSETS CONSIST OF: | |||||||||||||||||||||||||||
Shares of beneficial interest | $ | 158,536,980 | $ | 45,504,622 | $ | 192,921,373 | $ | 1,718,554,929 | $ | 1,837,681,122 | $ | 75,553,872 | |||||||||||||||
Undistributed net investment income (loss) | 143,134 | 1,416 | (5,321 | ) | 398,523 | (24,281 | ) | 119,181 | |||||||||||||||||||
Accumulated net realized gain (loss) on investments and foreign currency related transactions | (23,947,474 | ) | (28,298,307 | ) | (133,789,178 | ) | (432,836,246 | ) | (1,038,329,480 | ) | (22,538,380 | ) | |||||||||||||||
Net unrealized appreciation (depreciation) on investments and translation of assets and liabilities in foreign currencies | 33,107,188 | 2,082,359 | 8,618,641 | 48,916,093 | (141,841,753 | ) | 7,316,541 | ||||||||||||||||||||
Net Assets | $ | 167,839,828 | $ | 19,290,090 | $ | 67,745,515 | $ | 1,335,033,299 | $ | 657,485,608 | $ | 60,451,214 | |||||||||||||||
Shares outstanding (unlimited amount authorized, $0.01 par value) | 7,800,000 | 950,000 | 5,550,000 | 73,950,000 | 65,000,000 | 2,400,000 | |||||||||||||||||||||
Net asset value | $ | 21.52 | $ | 20.31 | $ | 12.21 | $ | 18.05 | $ | 10.12 | $ | 25.19 | |||||||||||||||
Share price | $ | 21.52 | $ | 20.31 | $ | 12.21 | $ | 18.27 | $ | 10.22 | $ | 25.19 | |||||||||||||||
Unaffiliated investments, at cost | $ | 137,178,478 | $ | 17,242,669 | $ | 59,220,945 | $ | 910,830,248 | $ | 724,556,014 | $ | 53,135,953 | |||||||||||||||
Affiliated investments, at cost | $ | 120,027 | $ | — | $ | — | $ | 375,356,149 | $ | 75,060,339 | $ | — | |||||||||||||||
Foreign cash, at cost | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Premium received | $ | 2,584,600 | $ | — | $ | — | $ | — | $ | — | $ | — |
61
Statements of Operations
Year Ended April 30, 2010
PowerShares Aerospace & Defense Portfolio | PowerShares CleantechTM Portfolio | PowerShares DWA Technical LeadersTM Portfolio | PowerShares Global Listed Private Equity Portfolio | PowerShares Golden Dragon Halter USX China Portfolio | PowerShares Lux Nanotech Portfolio | PowerShares NASDAQ-100 BuyWrite Portfolio | |||||||||||||||||||||||||
INVESTMENT INCOME: | |||||||||||||||||||||||||||||||
Unaffiliated dividend income | $ | 2,225,021 | $ | 1,216,209 | $ | 1,372,366 | $ | 6,673,324 | $ | 5,914,381 | $ | 352,641 | $ | 61,404 | |||||||||||||||||
Affiliated dividend income | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Foreign withholding tax | (6,093 | ) | (116,818 | ) | — | (186,621 | ) | (516,692 | ) | (1,590 | ) | (537 | ) | ||||||||||||||||||
Total Income | 2,218,928 | 1,099,391 | 1,372,366 | 6,486,703 | 5,397,689 | 351,051 | 60,867 | ||||||||||||||||||||||||
EXPENSES: | |||||||||||||||||||||||||||||||
Advisory fees | 638,835 | 697,837 | 651,728 | 744,150 | 2,135,427 | 267,285 | 62,541 | ||||||||||||||||||||||||
Sub-licensing | 76,660 | 104,675 | 130,345 | 148,830 | 427,085 | 53,457 | — | ||||||||||||||||||||||||
Accounting & administration fees | 64,668 | 64,668 | 69,995 | 64,668 | 104,245 | 64,668 | — | ||||||||||||||||||||||||
Professional fees | 35,345 | 59,564 | 36,040 | 40,804 | 45,674 | 32,001 | — | ||||||||||||||||||||||||
Custodian & transfer agent fees | 13,980 | 9,266 | 15,484 | 18,453 | 38,344 | 7,987 | — | ||||||||||||||||||||||||
Trustees | 8,347 | 8,591 | 8,591 | 8,334 | 17,690 | 5,830 | — | ||||||||||||||||||||||||
Other expenses | 40,559 | 52,403 | 43,118 | 41,892 | 274,466 | 21,749 | — | ||||||||||||||||||||||||
Total Expenses | 878,394 | 997,004 | 955,301 | 1,067,131 | 3,042,931 | 452,977 | 62,541 | ||||||||||||||||||||||||
Waivers | (35,132 | ) | (54,925 | ) | (43,037 | ) | (25,321 | ) | (53,336 | ) | (78,778 | ) | — | ||||||||||||||||||
Net Expenses | 843,262 | 942,079 | 912,264 | 1,041,810 | 2,989,595 | 374,199 | 62,541 | ||||||||||||||||||||||||
Net Investment Income (Loss) | 1,375,666 | 157,312 | 460,102 | 5,444,893 | 2,408,094 | (23,148 | ) | (1,674 | ) | ||||||||||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | |||||||||||||||||||||||||||||||
Net realized gain (loss) from: | |||||||||||||||||||||||||||||||
Investments | (15,711,782 | ) | (9,683,392 | ) | (8,450,841 | ) | (10,513,016 | ) | (88,226,635 | ) | (8,583,777 | ) | (51,185 | ) | |||||||||||||||||
Written options | — | — | — | — | — | — | (1,393,398 | ) | |||||||||||||||||||||||
In-kind redemptions | (124,327 | ) | 3,615,302 | 25,109,268 | 18,952,028 | 30,783,958 | 2,921,870 | — | |||||||||||||||||||||||
Foreign currency related transactions | — | (29,808 | ) | — | (793,861 | ) | — | — | — | ||||||||||||||||||||||
Net realized gain (loss) | (15,836,109 | ) | (6,097,898 | ) | 16,658,427 | 7,645,151 | (57,442,677 | ) | (5,661,907 | ) | (1,444,583 | ) | |||||||||||||||||||
Net change in unrealized appreciation (depreciation) on: | |||||||||||||||||||||||||||||||
Investments | 60,642,047 | 40,142,056 | 34,450,917 | 40,024,153 | 187,055,633 | 20,148,115 | 3,117,989 | ||||||||||||||||||||||||
Written options | — | — | — | — | — | — | 148,755 | ||||||||||||||||||||||||
Translation of asset and liabilities denominated in foreign currencies | — | (4,017 | ) | — | (1,823 | ) | — | — | — | ||||||||||||||||||||||
Net change in unrealized appreciation | 60,642,047 | 40,138,039 | 34,450,917 | 40,022,330 | 187,055,633 | 20,148,115 | 3,266,744 | ||||||||||||||||||||||||
Net realized and unrealized gain on investments | 44,805,938 | 34,040,141 | 51,109,344 | 47,667,481 | 129,612,956 | 14,486,208 | 1,822,161 | ||||||||||||||||||||||||
Net increase in net assets resulting from operations | $ | 46,181,604 | $ | 34,197,453 | $ | 51,569,446 | $ | 53,112,374 | $ | 132,021,050 | $ | 14,463,060 | $ | 1,820,487 |
See Notes to Financial Statements.
62
PowerShares S&P 500 BuyWrite Portfolio | PowerShares Value Line Industry Rotation Portfolio | PowerShares Value Line TimelinessTM Select Portfolio | PowerShares Water Resources Portfolio | PowerShares WilderHill Clean Energy Portfolio | PowerShares WilderHill Progressive Energy Portfolio | ||||||||||||||||||||||
INVESTMENT INCOME: | |||||||||||||||||||||||||||
Unaffiliated dividend income | $ | 2,689,727 | $ | 244,877 | $ | 485,081 | $ | 12,213,406 | $ | 3,996,011 | $ | 752,878 | |||||||||||||||
Affiliated dividend income | 2,323 | — | — | 4,315,845 | — | — | |||||||||||||||||||||
Foreign withholding tax | — | (917 | ) | (18,247 | ) | (754,783 | ) | (197,691 | ) | (47,700 | ) | ||||||||||||||||
Total Income | 2,692,050 | 243,960 | 466,834 | 15,774,468 | 3,798,320 | 705,178 | |||||||||||||||||||||
EXPENSES: | |||||||||||||||||||||||||||
Advisory fees | 961,691 | 125,923 | 346,695 | 6,554,623 | 3,673,654 | 266,050 | |||||||||||||||||||||
Sub-licensing | — | 25,185 | 69,339 | 983,194 | 734,731 | 51,980 | |||||||||||||||||||||
Accounting & administration fees | — | 64,668 | 64,668 | 321,532 | 181,644 | 64,668 | |||||||||||||||||||||
Professional fees | — | 30,908 | 32,879 | 86,120 | 61,197 | 31,941 | |||||||||||||||||||||
Custodian & transfer agent fees | — | 9,945 | 8,838 | 80,103 | 47,933 | 8,874 | |||||||||||||||||||||
Trustees | — | 4,924 | 6,480 | 49,005 | 29,398 | 5,787 | |||||||||||||||||||||
Other expenses | — | 12,255 | 23,865 | 277,786 | 442,675 | 17,009 | |||||||||||||||||||||
Total Expenses | 961,691 | 273,808 | 552,764 | 8,352,363 | 5,171,232 | 446,309 | |||||||||||||||||||||
Waivers | — | (97,515 | ) | (67,391 | ) | — | (28,116 | ) | (75,069 | ) | |||||||||||||||||
Net Expenses | 961,691 | 176,293 | 485,373 | 8,352,363 | 5,143,116 | 371,240 | |||||||||||||||||||||
Net Investment Income (Loss) | 1,730,359 | 67,667 | (18,539 | ) | 7,422,105 | (1,344,796 | ) | 333,938 | |||||||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | |||||||||||||||||||||||||||
Net realized gain (loss) from: | |||||||||||||||||||||||||||
Investments | (4,427,200 | ) | (3,063,503 | ) | (8,060,598 | ) | (115,093,687 | ) | (221,731,752 | ) | (3,202,760 | ) | |||||||||||||||
Written options | (15,258,419 | ) | — | — | — | — | — | ||||||||||||||||||||
In-kind redemptions | 687,542 | 8,744,909 | 18,277,159 | 37,430,431 | 53,786,479 | 904,976 | |||||||||||||||||||||
Foreign currency related transactions | — | — | — | — | — | — | |||||||||||||||||||||
Net realized gain (loss) | (18,998,077 | ) | 5,681,406 | 10,216,561 | (77,663,256 | ) | (167,945,273 | ) | (2,297,784 | ) | |||||||||||||||||
Net change in unrealized appreciation (depreciation) on: | |||||||||||||||||||||||||||
Investments | 40,967,375 | 1,537,408 | 6,724,746 | 403,374,916 | 245,604,627 | 20,849,396 | |||||||||||||||||||||
Written options | 415,292 | — | — | — | — | — | |||||||||||||||||||||
Translation of asset and liabilities denominated in foreign currencies | — | — | — | — | — | — | |||||||||||||||||||||
Net change in unrealized appreciation | 41,382,667 | 1,537,408 | 6,724,746 | 403,374,916 | 245,604,627 | 20,849,396 | |||||||||||||||||||||
Net realized and unrealized gain on investments | 22,384,590 | 7,218,814 | 16,941,307 | 325,711,660 | 77,659,354 | 18,551,612 | |||||||||||||||||||||
Net increase in net assets resulting from operations | $ | 24,114,949 | $ | 7,286,481 | $ | 16,922,768 | $ | 333,133,765 | $ | 76,314,558 | $ | 18,885,550 |
63
Statements of Changes in Net Assets
PowerShares Aerospace & Defense Portfolio | PowerShares CleantechTM Portfolio | PowerShares DWA Technical LeadersTM Portfolio | |||||||||||||||||||||||||
Year Ended April 30, 2010 | Year Ended April 30, 2009 | Year Ended April 30, 2010 | Year Ended April 30, 2009 | Year Ended April 30, 2010 | Year Ended April 30, 2009 | ||||||||||||||||||||||
OPERATIONS: | |||||||||||||||||||||||||||
Net investment income (loss) | $ | 1,375,666 | $ | 1,626,906 | $ | 157,312 | $ | (9,129 | ) | $ | 460,102 | $ | 990,079 | ||||||||||||||
Net realized gain (loss) on investments and foreign currency related transactions | (15,836,109 | ) | (17,054,727 | ) | (6,097,898 | ) | (30,006,204 | ) | 16,658,427 | (173,699,963 | ) | ||||||||||||||||
Net change in unrealized appreciation (depreciation) on investments and translation of assets and liabilities denominated in foreign currencies | 60,642,047 | (66,015,919 | ) | 40,138,039 | (41,945,980 | ) | 34,450,917 | (17,193,055 | ) | ||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 46,181,604 | (81,443,740 | ) | 34,197,453 | (71,961,313 | ) | 51,569,446 | (189,902,939 | ) | ||||||||||||||||||
Undistributed net investment income (loss) included in the price of units issued and redeemed | (44,617 | ) | (109,833 | ) | (48,876 | ) | (244,900 | ) | (137,660 | ) | (380,236 | ) | |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||||||||||||
Net investment income | (1,645,392 | ) | (1,446,628 | ) | (223,251 | ) | — | (843,823 | ) | (486,080 | ) | ||||||||||||||||
Return of capital | — | — | (75,171 | ) | — | — | — | ||||||||||||||||||||
Net realized gains | — | — | — | — | — | — | |||||||||||||||||||||
Total distributions to shareholders | (1,645,392 | ) | (1,446,628 | ) | (298,422 | ) | — | (843,823 | ) | (486,080 | ) | ||||||||||||||||
SHAREHOLDER TRANSACTIONS: | |||||||||||||||||||||||||||
Proceeds from shares sold | 13,619,982 | 29,268,610 | 24,079,029 | 76,687,579 | 153,039,448 | 263,642,733 | |||||||||||||||||||||
Value of shares repurchased | (37,248,118 | ) | (87,444,233 | ) | (9,630,426 | ) | (7,389,055 | ) | (182,942,658 | ) | (298,218,621 | ) | |||||||||||||||
Net income equalization | 44,617 | 109,833 | 48,876 | 244,900 | 137,660 | 380,236 | |||||||||||||||||||||
Net increase (decrease) in net assets resulting from shares transactions | (23,583,519 | ) | (58,065,790 | ) | 14,497,479 | 69,543,424 | (29,765,550 | ) | (34,195,652 | ) | |||||||||||||||||
Increase (Decrease) in Net Assets | 20,908,076 | (141,065,991 | ) | 48,347,634 | (2,662,789 | ) | 20,822,413 | (224,964,907 | ) | ||||||||||||||||||
NET ASSETS: | |||||||||||||||||||||||||||
Beginning of year | 116,429,474 | 257,495,465 | 111,673,518 | 114,336,307 | 138,548,897 | 363,513,804 | |||||||||||||||||||||
End of year | $ | 137,337,550 | $ | 116,429,474 | $ | 160,021,152 | $ | 111,673,518 | $ | 159,371,310 | $ | 138,548,897 | |||||||||||||||
Undistributed net investment income (loss) at end of year | $ | 126,024 | $ | 395,750 | $ | (4,993 | ) | $ | 90,754 | $ | 120,278 | $ | 503,999 | ||||||||||||||
CHANGES IN SHARES OUTSTANDING: | |||||||||||||||||||||||||||
Shares sold | 850,000 | 1,800,000 | 1,000,000 | 2,700,000 | 8,750,000 | 12,600,000 | |||||||||||||||||||||
Shares repurchased | (2,350,000 | ) | (5,400,000 | ) | (400,000 | ) | (300,000 | ) | (11,050,000 | ) | (16,800,000 | ) | |||||||||||||||
Shares outstanding, beginning of year | 8,700,000 | 12,300,000 | 5,800,000 | 3,400,000 | 9,800,000 | 14,000,000 | |||||||||||||||||||||
Shares outstanding, end of year | 7,200,000 | 8,700,000 | 6,400,000 | 5,800,000 | 7,500,000 | 9,800,000 |
See Notes to Financial Statements.
64
PowerShares Global Listed Private Equity Portfolio | PowerShares Golden Dragon Halter USX China Portfolio | PowerShares Lux Nanotech Portfolio | |||||||||||||||||||||||||
Year Ended April 30, 2010 | Year Ended April 30, 2009 | Year Ended April 30, 2010 | Year Ended April 30, 2009 | Year Ended April 30, 2010 | Year Ended April 30, 2009 | ||||||||||||||||||||||
OPERATIONS: | |||||||||||||||||||||||||||
Net investment income (loss) | $ | 5,444,893 | $ | 6,276,507 | $ | 2,408,094 | $ | 3,372,935 | $ | (23,148 | ) | $ | 97,124 | ||||||||||||||
Net realized gain (loss) on investments and foreign currency related transactions | 7,645,151 | (113,617,040 | ) | (57,442,677 | ) | (80,404,864 | ) | (5,661,907 | ) | (37,494,625 | ) | ||||||||||||||||
Net change in unrealized appreciation (depreciation) on investments and translation of assets and liabilities denominated in foreign currencies | 40,022,330 | 19,810,362 | 187,055,633 | (115,281,921 | ) | 20,148,115 | 1,642,166 | ||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 53,112,374 | (87,530,171 | ) | 132,021,050 | (192,313,850 | ) | 14,463,060 | (35,755,335 | ) | ||||||||||||||||||
Undistributed net investment income (loss) included in the price of units issued and redeemed | 4,003,173 | 1,520,354 | 455,464 | (415,792 | ) | 5,513 | 4,781 | ||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||||||||||||
Net investment income | (4,710,562 | ) | (6,364,696 | ) | (3,271,139 | ) | (2,867,142 | ) | (101,214 | ) | — | ||||||||||||||||
Return of capital | — | — | (501,022 | ) | — | (16 | ) | — | |||||||||||||||||||
Net realized gains | — | — | — | — | — | — | |||||||||||||||||||||
Total distributions to shareholders | (4,710,562 | ) | (6,364,696 | ) | (3,772,161 | ) | (2,867,142 | ) | (101,230 | ) | — | ||||||||||||||||
SHAREHOLDER TRANSACTIONS: | |||||||||||||||||||||||||||
Proceeds from shares sold | 167,432,792 | 78,938,052 | 142,365,948 | 124,754,282 | 8,086,112 | 17,226,459 | |||||||||||||||||||||
Value of shares repurchased | (64,431,077 | ) | (27,946,437 | ) | (94,581,842 | ) | (178,565,999 | ) | (6,641,822 | ) | (26,415,388 | ) | |||||||||||||||
Net income equalization | (4,003,173 | ) | (1,520,354 | ) | (455,464 | ) | 415,792 | (5,513 | ) | (4,781 | ) | ||||||||||||||||
Net increase (decrease) in net assets resulting from shares transactions | 98,998,542 | 49,471,261 | 47,328,642 | (53,395,925 | ) | 1,438,777 | (9,193,710 | ) | |||||||||||||||||||
Increase (Decrease) in Net Assets | 151,403,527 | (42,903,252 | ) | 176,032,995 | (248,992,709 | ) | 15,806,120 | (44,944,264 | ) | ||||||||||||||||||
NET ASSETS: | |||||||||||||||||||||||||||
Beginning of year | 60,475,931 | 103,379,183 | 279,490,292 | 528,483,001 | 39,483,951 | 84,428,215 | |||||||||||||||||||||
End of year | $ | 211,879,458 | $ | 60,475,931 | $ | 455,523,287 | $ | 279,490,292 | $ | 55,290,071 | $ | 39,483,951 | |||||||||||||||
Undistributed net investment income (loss) at end of year | $ | 8,504 | $ | 226,162 | $ | (317,994 | ) | $ | 505,793 | $ | (4,088 | ) | $ | 97,124 | |||||||||||||
CHANGES IN SHARES OUTSTANDING: | |||||||||||||||||||||||||||
Shares sold | 18,900,000 | 6,700,000 | 6,350,000 | 5,800,000 | 800,000 | 1,600,000 | |||||||||||||||||||||
Shares repurchased | (6,800,000 | ) | (2,800,000 | ) | (4,150,000 | ) | (8,100,000 | ) | (650,000 | ) | (2,400,000 | ) | |||||||||||||||
Shares outstanding, beginning of year | 9,000,000 | 5,100,000 | 16,000,000 | 18,300,000 | 5,200,000 | 6,000,000 | |||||||||||||||||||||
Shares outstanding, end of year | 21,100,000 | 9,000,000 | 18,200,000 | 16,000,000 | 5,350,000 | 5,200,000 |
65
Statements of Changes in Net Assets (Continued)
PowerShares NASDAQ-100 BuyWrite Portfolio | PowerShares S&P 500 BuyWrite Portfolio | PowerShares Value Line Industry Rotation Portfolio | |||||||||||||||||||||||||
Year Ended April 30, 2010 | For the Period June 9, 2008* Through April 30, 2009 | Year Ended April 30, 2010 | Year Ended April 30, 2009 | Year Ended April 30, 2010 | Year Ended April 30, 2009 | ||||||||||||||||||||||
OPERATIONS: | |||||||||||||||||||||||||||
Net investment income (loss) | $ | (1,674 | ) | $ | (1,870 | ) | $ | 1,730,359 | $ | 950,362 | $ | 67,667 | $ | 175,511 | |||||||||||||
Net realized gain (loss) on investments and foreign currency related transactions | (1,444,583 | ) | (423,372 | ) | (18,998,077 | ) | (4,845,289 | ) | 5,681,406 | (23,805,859 | ) | ||||||||||||||||
Net change in unrealized appreciation (depreciation) on investments and translation of assets and liabilities denominated in foreign currencies | 3,266,744 | 16,965 | 41,382,667 | (8,332,881 | ) | 1,537,408 | (1,182,836 | ) | |||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 1,820,487 | (408,277 | ) | 24,114,949 | (12,227,808 | ) | 7,286,481 | (24,813,184 | ) | ||||||||||||||||||
Undistributed net investment income (loss) included in the price of units issued and redeemed | (115,127 | ) | (5,030 | ) | (4,975 | ) | (113,226 | ) | (6,004 | ) | (7,380 | ) | |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||||||||||||
Net investment income | (447,704 | ) | — | (1,778,095 | ) | (887,380 | ) | (145,806 | ) | (100,862 | ) | ||||||||||||||||
Return of capital | — | — | — | — | — | — | |||||||||||||||||||||
Net realized gains | (58,556 | ) | — | — | — | — | — | ||||||||||||||||||||
Total distributions to shareholders | (506,260 | ) | — | (1,778,095 | ) | (887,380 | ) | (145,806 | ) | (100,862 | ) | ||||||||||||||||
SHAREHOLDER TRANSACTIONS: | |||||||||||||||||||||||||||
Proceeds from shares sold | 4,231,495 | 5,932,758 | 63,425,020 | 110,330,594 | 43,952,344 | 72,452,696 | |||||||||||||||||||||
Value of shares repurchased | — | — | (2,133,217 | ) | (20,504,978 | ) | (58,310,478 | ) | (62,881,279 | ) | |||||||||||||||||
Net income equalization | 115,127 | 5,030 | 4,975 | 113,226 | 6,004 | 7,380 | |||||||||||||||||||||
Net increase (decrease) in net assets resulting from shares transactions | 4,346,622 | 5,937,788 | 61,296,778 | 89,938,842 | (14,352,130 | ) | 9,578,797 | ||||||||||||||||||||
Increase (Decrease) in Net Assets | 5,545,722 | 5,524,481 | 83,628,657 | 76,710,428 | (7,217,459 | ) | (15,342,629 | ) | |||||||||||||||||||
NET ASSETS: | |||||||||||||||||||||||||||
Beginning of year | 5,524,481 | — | 84,211,171 | 7,500,743 | 26,507,549 | 41,850,178 | |||||||||||||||||||||
End of year | $ | 11,070,203 | $ | 5,524,481 | $ | 167,839,828 | $ | 84,211,171 | $ | 19,290,090 | $ | 26,507,549 | |||||||||||||||
Undistributed net investment income (loss) at end of year | $ | — | $ | — | $ | 143,134 | $ | 190,870 | $ | 1,416 | $ | 74,653 | |||||||||||||||
CHANGES IN SHARES OUTSTANDING: | |||||||||||||||||||||||||||
Shares sold | 200,000 | 300,000 | 3,100,000 | 5,700,000 | 2,550,000 | 3,100,000 | |||||||||||||||||||||
Shares repurchased | — | — | (100,000 | ) | (1,200,000 | ) | (3,300,000 | ) | (2,900,000 | ) | |||||||||||||||||
Shares outstanding, beginning of year | 300,000 | — | 4,800,000 | 300,000 | 1,700,000 | 1,500,000 | |||||||||||||||||||||
Shares outstanding, end of year | 500,000 | 300,000 | 7,800,000 | 4,800,000 | 950,000 | 1,700,000 |
* Commencement of Investment Operations
See Notes to Financial Statements.
66
PowerShares Value Line TimelinessTM Select Portfolio | PowerShares Water Resources Portfolio | PowerShares WilderHill Clean Energy Portfolio | |||||||||||||||||||||||||
Year Ended April 30, 2010 | Year Ended April 30, 2009 | Year Ended April 30, 2010 | Year Ended April 30, 2009 | Year Ended April 30, 2010 | Year Ended April 30, 2009 | ||||||||||||||||||||||
OPERATIONS: | |||||||||||||||||||||||||||
Net investment income (loss) | $ | (18,539 | ) | $ | 327,221 | $ | 7,422,105 | $ | 8,268,241 | $ | (1,344,796 | ) | $ | (1,124,394 | ) | ||||||||||||
Net realized gain (loss) on investments and foreign currency related transactions | 10,216,561 | (67,488,496 | ) | (77,663,256 | ) | (262,538,575 | ) | (167,945,273 | ) | (664,713,260 | ) | ||||||||||||||||
Net change in unrealized appreciation (depreciation) on investments and translation of assets and liabilities denominated in foreign currencies | 6,724,746 | (1,367,281 | ) | 403,374,916 | (478,207,181 | ) | 245,604,627 | (202,143,081 | ) | ||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 16,922,768 | (68,528,556 | ) | 333,133,765 | (732,477,515 | ) | 76,314,558 | (867,980,735 | ) | ||||||||||||||||||
Undistributed net investment income (loss) included in the price of units issued and redeemed | (13,912 | ) | (31,377 | ) | (468,057 | ) | (692,733 | ) | 205,468 | (82,390 | ) | ||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||||||||||||
Net investment income | (237,779 | ) | (95,040 | ) | (9,289,108 | ) | (6,232,539 | ) | — | — | |||||||||||||||||
Return of capital | — | — | — | — | — | — | |||||||||||||||||||||
Net realized gains | — | — | — | — | — | — | |||||||||||||||||||||
Total distributions to shareholders | (237,779 | ) | (95,040 | ) | (9,289,108 | ) | (6,232,539 | ) | — | — | |||||||||||||||||
SHAREHOLDER TRANSACTIONS: | |||||||||||||||||||||||||||
Proceeds from shares sold | 94,901,543 | 221,405,325 | 29,217,910 | 340,520,394 | 184,160,845 | 490,135,966 | |||||||||||||||||||||
Value of shares repurchased | (114,889,264 | ) | (259,402,068 | ) | (238,056,609 | ) | (578,435,173 | ) | (261,389,443 | ) | (437,648,405 | ) | |||||||||||||||
Net income equalization | 13,912 | 31,377 | 468,057 | 692,733 | (205,468 | ) | 82,390 | ||||||||||||||||||||
Net increase (decrease) in net assets resulting from shares transactions | (19,973,809 | ) | (37,965,366 | ) | (208,370,642 | ) | (237,222,046 | ) | (77,434,066 | ) | 52,569,951 | ||||||||||||||||
Increase (Decrease) in Net Assets | (3,302,732 | ) | (106,620,339 | ) | 115,005,958 | (976,624,833 | ) | (914,040 | ) | (815,493,174 | ) | ||||||||||||||||
NET ASSETS: | |||||||||||||||||||||||||||
Beginning of year | 71,048,247 | 177,668,586 | 1,220,027,341 | 2,196,652,174 | 658,399,648 | 1,473,892,822 | |||||||||||||||||||||
End of year | $ | 67,745,515 | $ | 71,048,247 | $ | 1,335,033,299 | $ | 1,220,027,341 | $ | 657,485,608 | $ | 658,399,648 | |||||||||||||||
Undistributed net investment income (loss) at end of year | $ | (5,321 | ) | $ | 232,181 | $ | 398,523 | $ | 2,265,526 | $ | (24,281 | ) | $ | (25,802 | ) | ||||||||||||
CHANGES IN SHARES OUTSTANDING: | |||||||||||||||||||||||||||
Shares sold | 9,050,000 | 15,600,000 | 1,750,000 | 17,600,000 | 17,750,000 | 38,900,000 | |||||||||||||||||||||
Shares repurchased | (10,900,000 | ) | (18,800,000 | ) | (14,700,000 | ) | (37,000,000 | ) | (25,650,000 | ) | (36,400,000 | ) | |||||||||||||||
Shares outstanding, beginning of year | 7,400,000 | 10,600,000 | 86,900,000 | 106,300,000 | 72,900,000 | 70,400,000 | |||||||||||||||||||||
Shares outstanding, end of year | 5,550,000 | 7,400,000 | 73,950,000 | 86,900,000 | 65,000,000 | 72,900,000 |
67
Statements of Changes in Net Assets (Continued)
PowerShares WilderHill Progressive Energy Portfolio | |||||||||||
Year Ended April 30, 2010 | Year Ended April 30, 2009 | ||||||||||
OPERATIONS: | |||||||||||
Net investment income | $ | 333,938 | $ | 308,644 | |||||||
Net realized gain (loss) on investments and foreign currency related transactions | (2,297,784 | ) | (18,080,576 | ) | |||||||
Net change in unrealized appreciation (depreciation) on investments and translation of assets and liabilities denominated in foreign currencies | 20,849,396 | (15,514,733 | ) | ||||||||
Net increase (decrease) in net assets resulting from operations | 18,885,550 | (33,286,665 | ) | ||||||||
Undistributed net investment income included in the price of units issued and redeemed | 11,802 | 6,067 | |||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||
Net investment income | (347,466 | ) | (175,935 | ) | |||||||
Return of capital | — | — | |||||||||
Net realized gains | — | — | |||||||||
Total distributions to shareholders | (347,466 | ) | (175,935 | ) | |||||||
SHAREHOLDER TRANSACTIONS: | |||||||||||
Proceeds from shares sold | 4,334,078 | 38,554,939 | |||||||||
Value of shares repurchased | (2,391,138 | ) | (27,219,587 | ) | |||||||
Net income equalization | (11,802 | ) | (6,067 | ) | |||||||
Net increase in net assets resulting from shares transactions | 1,931,138 | 11,329,285 | |||||||||
Increase (Decrease) in Net Assets | 20,481,024 | (22,127,248 | ) | ||||||||
NET ASSETS: | |||||||||||
Beginning of year | 39,970,190 | 62,097,438 | |||||||||
End of year | $ | 60,451,214 | $ | 39,970,190 | |||||||
Undistributed net investment income at end of year | $ | 119,181 | $ | 132,709 | |||||||
CHANGES IN SHARES OUTSTANDING: | |||||||||||
Shares sold | 200,000 | 1,500,000 | |||||||||
Shares repurchased | (100,000 | ) | (1,400,000 | ) | |||||||
Shares outstanding, beginning of year | 2,300,000 | 2,200,000 | |||||||||
Shares outstanding, end of year | 2,400,000 | 2,300,000 |
See Notes to Financial Statements.
68
Financial Highlights
PowerShares Aerospace & Defense Portfolio
Year Ended April 30, | For the Period October 26, 2005* Through | ||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | April 30, 2006 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 13.38 | $ | 20.93 | $ | 20.19 | $ | 17.37 | $ | 14.91 | |||||||||||||
Net investment income** | 0.17 | 0.16 | 0.06 | 0.05 | 0.03 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 5.73 | (7.56 | ) | 0.72 | 2.83 | 2.45 | |||||||||||||||||
Total from investment operations | 5.90 | (7.40 | ) | 0.78 | 2.88 | 2.48 | |||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.21 | ) | (0.15 | ) | (0.04 | ) | (0.06 | ) | (0.02 | ) | |||||||||||||
Return of capital | — | — | — | — | (a) | — | |||||||||||||||||
Total distributions | (0.21 | ) | (0.15 | ) | (0.04 | ) | (0.06 | ) | (0.02 | ) | |||||||||||||
Net asset value at end of period | $ | 19.07 | $ | 13.38 | $ | 20.93 | $ | 20.19 | $ | 17.37 | |||||||||||||
Share price at end of period*** | $ | 19.07 | $ | 13.37 | |||||||||||||||||||
NET ASSET VALUE, TOTAL RETURN**** | 44.36 | % | (35.46 | )% | 3.86 | % | 16.66 | % | 16.66 | % | |||||||||||||
SHARE PRICE TOTAL RETURN**** | 44.47 | % | (35.48 | )% | |||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 137,338 | $ | 116,429 | $ | 257,495 | $ | 201,886 | $ | 85,136 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.66 | % | 0.66 | % | 0.66 | % | 0.66 | % | 0.68 | %† | |||||||||||||
Expenses, prior to (Waivers) and/or Recapture | 0.69 | % | 0.67 | % | 0.64 | % | 0.77 | % | 0.80 | %† | |||||||||||||
Net investment income, after (Waivers) and/or Recapture | 1.08 | % | 1.01 | % | 0.27 | % | 0.28 | % | 0.31 | %† | |||||||||||||
Portfolio turnover rate †† | 17 | % | 9 | % | 13 | % | 16 | % | 1 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | (0.01 | ) | $ | (0.01 | ) | $ | 0.00 | (a) | $ | 0.00 | (a) | — |
PowerShares CleantechTM Portfolio
Year Ended April 30, | For the Period October 24, 2006* Through | ||||||||||||||||||
2010 | 2009 | 2008 | April 30, 2007 | ||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||
Net asset value at beginning of period | $ | 19.25 | $ | 33.63 | $ | 27.08 | $ | 24.70 | |||||||||||
Net investment income (loss)** | 0.03 | (0.00 | )(a) | (0.10 | ) | (0.04 | ) | ||||||||||||
Net realized and unrealized gain (loss) on investments | 5.77 | (14.38 | ) | 6.65 | 2.42 | ||||||||||||||
Total from investment operations | 5.80 | (14.38 | ) | 6.55 | 2.38 | ||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||
Net investment income | (0.04 | ) | — | — | — | ||||||||||||||
Return of capital | (0.01 | ) | — | — | — | ||||||||||||||
Total distributions | (0.05 | ) | — | — | — | ||||||||||||||
Net asset value at end of period | $ | 25.00 | $ | 19.25 | $ | 33.63 | $ | 27.08 | |||||||||||
Share price at end of period*** | $ | 24.80 | $ | 19.35 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN**** | 30.16 | % | (42.76 | )% | 24.19 | % | 9.64 | % | |||||||||||
SHARE PRICE TOTAL RETURN**** | 28.45 | % | (42.45 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 160,021 | $ | 111,674 | $ | 114,336 | $ | 21,663 | |||||||||||
Ratio to average net assets of: | |||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.67 | % | 0.67 | % | 0.69 | % | 0.71 | %† | |||||||||||
Expenses, prior to (Waivers) and/or Recapture | 0.71 | % | 0.73 | % | 0.77 | % | 1.06 | %† | |||||||||||
Net investment income (loss), after (Waivers) and/or Recapture | 0.11 | % | (0.01 | )% | (0.31 | )% | (0.29 | )%† | |||||||||||
Portfolio turnover rate †† | 31 | % | 72 | % | 23 | % | 22 | % | |||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | (0.01 | ) | $ | (0.05 | ) | $ | (0.09 | ) | $ | 0.01 |
* Commencement of Investment Operations.
** Based on average shares outstanding.
*** The mean between the last bid and ask prices.
**** Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all dividends and distributions at share price during the period, and sale at the share price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
† Annualized.
†† Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
# The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(a) Amount represents less than $0.005.
See Notes to Financial Statements.
69
Financial Highlights (Continued)
PowerShares DWA Technical LeadersTM Portfolio
Year Ended April 30, | For the Period March 1, 2007* Through | ||||||||||||||||||
2010 | 2009 | 2008 | April 30, 2007 | ||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||
Net asset value at beginning of period | $ | 14.14 | $ | 25.97 | $ | 25.58 | $ | 23.95 | |||||||||||
Net investment income (loss)** | 0.06 | 0.07 | (0.02 | ) | 0.04 | ||||||||||||||
Net realized and unrealized gain (loss) on investments | 7.15 | (11.86 | ) | 0.43 | 1.59 | ||||||||||||||
Total from investment operations | 7.21 | (11.79 | ) | 0.41 | 1.63 | ||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||
Net investment income | (0.10 | ) | (0.04 | ) | (0.01 | ) | — | ||||||||||||
Return of capital | — | — | (0.01 | ) | — | ||||||||||||||
Total distributions | (0.10 | ) | (0.04 | ) | (0.02 | ) | — | ||||||||||||
Net asset value at end of period | $ | 21.25 | $ | 14.14 | $ | 25.97 | $ | 25.58 | |||||||||||
Share price at end of period*** | $ | 21.24 | $ | 14.13 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN**** | 51.28 | % | (45.40 | )% | 1.62 | % | 6.81 | % | |||||||||||
SHARE PRICE TOTAL RETURN**** | 51.31 | % | (45.49 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 159,371 | $ | 138,549 | $ | 363,514 | $ | 92,090 | |||||||||||
Ratio to average net assets of: | |||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.70 | % | 0.69 | % | 0.71 | % | 0.72 | %† | |||||||||||
Expenses, prior to (Waivers) and/or Recapture | 0.73 | % | 0.68 | % | 0.68 | % | 1.78 | %† | |||||||||||
Net investment income (loss), after (Waivers) and/or Recapture | 0.35 | % | 0.38 | % | (0.07 | )% | 1.50 | %†(a) | |||||||||||
Portfolio turnover rate †† | 52 | % | 87 | % | 83 | % | 9 | % | |||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | (0.02 | ) | $ | (0.03 | ) | $ | 0.07 | $ | 0.07 |
PowerShares Global Listed Private Equity Portfolio
Year Ended April 30, | For the Period October 24, 2006* Through | ||||||||||||||||||
2010 | 2009 | 2008 | April 30, 2007 | ||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||
Net asset value at beginning of period | $ | 6.72 | $ | 20.27 | $ | 27.79 | $ | 25.09 | |||||||||||
Net investment income** | 0.33 | 0.87 | 1.22 | 0.44 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 3.27 | (13.55 | ) | (7.63 | ) | 2.60 | |||||||||||||
Total from investment operations | 3.60 | (12.68 | ) | (6.41 | ) | 3.04 | |||||||||||||
Distributions to shareholders from: | |||||||||||||||||||
Net investment income | (0.28 | ) | (0.87 | ) | (1.11 | ) | (0.34 | ) | |||||||||||
Net asset value at end of period | $ | 10.04 | $ | 6.72 | $ | 20.27 | $ | 27.79 | |||||||||||
Share price at end of period*** | $ | 10.06 | $ | 6.71 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN**** | 54.20 | % | (64.23 | )% | (23.50 | )% | 12.18 | % | |||||||||||
SHARE PRICE TOTAL RETURN**** | 54.70 | % | (64.29 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 211,879 | $ | 60,476 | $ | 103,379 | $ | 150,078 | |||||||||||
Ratio to average net assets of: | |||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.70 | % | 0.70 | % | 0.71 | % | 0.71 | %† | |||||||||||
Expenses, prior to (Waivers) and/or Recapture | 0.72 | % | 0.78 | % | 0.72 | % | 0.82 | %† | |||||||||||
Net investment income, after (Waivers) and/or Recapture | 3.66 | %(b) | 7.75 | % | 5.04 | % | 3.38 | %† | |||||||||||
Portfolio turnover rate †† | 121 | % | 74 | % | 30 | % | 19 | % | |||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | 0.24 | $ | 0.21 | $ | (0.03 | ) | $ | 0.08 |
* Commencement of Investment Operations.
** Based on average shares outstanding.
*** The mean between the last bid and ask prices.
**** Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all dividends and distributions at share price during the period, and sale at the share price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
† Annualized.
†† Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
# The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(a) Net investment income per share and the ratio of net investment income to average net assets include a special cash dividend received of $15.00 per share owned of Dean Foods Co. on April 2, 2007. Net investment loss per share and the ratio of net investment loss to average net assets excluding the special dividend were less than $0.005 and (0.11)%, respectively, for the year ended April 30, 2007.
(b) Net investment income per share and the ratio of net investment income to average net assets include a special stock dividend in which the Fund elected a cash payment of $0.96 per share owned of American Captial Ltd. on August 7, 2009. Net investment income per share and the ratio of net investment income to average net assets excluding the special dividend are $0.27 and 2.94%, respectively.
See Notes to Financial Statements.
70
Financial Highlights (Continued)
PowerShares Golden Dragon Halter USX China Portfolio
Year Ended April 30, | |||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 17.47 | $ | 28.88 | $ | 21.43 | $ | 16.90 | $ | 13.00 | |||||||||||||
Net investment income** | 0.13 | 0.20 | 0.12 | 0.20 | 0.17 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 7.63 | (11.44 | ) | 7.54 | 4.54 | 3.89 | |||||||||||||||||
Total from investment operations | 7.76 | (11.24 | ) | 7.66 | 4.74 | 4.06 | |||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.17 | ) | (0.17 | ) | (0.20 | ) | (0.21 | ) | (0.16 | ) | |||||||||||||
Return of capital | (0.03 | ) | — | (0.01 | ) | — | — | ||||||||||||||||
Total distributions | (0.20 | ) | (0.17 | ) | (0.21 | ) | (0.21 | ) | (0.16 | ) | |||||||||||||
Net asset value at end of period | $ | 25.03 | $ | 17.47 | $ | 28.88 | $ | 21.43 | $ | 16.90 | |||||||||||||
Share price at end of period*** | $ | 25.11 | $ | 17.48 | |||||||||||||||||||
NET ASSET VALUE, TOTAL RETURN**** | 44.51 | % | (39.06 | )% | 35.87 | % | 28.53 | % | 31.52 | % | |||||||||||||
SHARE PRICE TOTAL RETURN**** | 44.49 | % | (38.92 | )% | |||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 455,523 | $ | 279,490 | $ | 528,483 | $ | 394,320 | $ | 238,330 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.70 | % | 0.69 | % | 0.69 | % | 0.70 | % | 0.71 | % | |||||||||||||
Expenses, prior to (Waivers) and/or Recapture | 0.71 | % | 0.71 | % | 0.66 | % | 0.72 | % | 0.88 | % | |||||||||||||
Net investment income, after (Waivers) and/or Recapture | 0.56 | % | 1.06 | % | 0.42 | % | 1.06 | % | 1.18 | % | |||||||||||||
Portfolio turnover rate † | 35 | % | 20 | % | 15 | % | 17 | % | 21 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | 0.02 | $ | (0.03 | ) | $ | 0.03 | $ | 0.01 | — |
PowerShares Lux Nanotech Portfolio
Year Ended April 30, | For the Period October 26, 2005* Through | ||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | April 30, 2006 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 7.59 | $ | 14.07 | $ | 17.48 | $ | 19.05 | $ | 15.32 | |||||||||||||
Net investment income (loss)** | (0.00 | )(a) | 0.02 | (0.03 | ) | (0.02 | ) | 0.02 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 2.76 | (6.50 | ) | (3.38 | ) | (1.55 | ) | 3.79 | |||||||||||||||
Total from investment operations | 2.76 | (6.48 | ) | (3.41 | ) | (1.57 | ) | 3.81 | |||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.02 | ) | — | — | — | (0.01 | ) | ||||||||||||||||
Return of capital | 0.00 | (a) | — | — | — | (0.07 | ) | ||||||||||||||||
Total distributions | (0.02 | ) | — | — | — | (0.08 | ) | ||||||||||||||||
Net asset value at end of period | $ | 10.33 | $ | 7.59 | $ | 14.07 | $ | 17.48 | $ | 19.05 | |||||||||||||
Share price at end of period*** | $ | 10.32 | $ | 7.60 | |||||||||||||||||||
NET ASSET VALUE, TOTAL RETURN**** | 36.39 | % | (46.06 | )% | (19.51 | )% | (8.24 | )% | 24.94 | % | |||||||||||||
SHARE PRICE TOTAL RETURN**** | 36.08 | % | (45.79 | )% | |||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 55,290 | $ | 39,484 | $ | 84,428 | $ | 159,052 | $ | 112,416 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.70 | % | 0.70 | % | 0.70 | % | 0.71 | % | 0.73 | %†† | |||||||||||||
Expenses, prior to (Waivers) and/or Recapture | 0.85 | % | 0.89 | % | 0.73 | % | 0.79 | % | 0.83 | %†† | |||||||||||||
Net investment income (loss), after (Waivers) and/or Recapture | (0.04 | )% | 0.17 | % | (0.17 | )% | (0.09 | )% | 0.17 | %†† | |||||||||||||
Portfolio turnover rate † | 57 | % | 50 | % | 42 | % | 16 | % | 6 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | 0.00 | (a) | $ | 0.00 | (a) | $ | 0.01 | $ | (0.01 | ) | — |
* Commencement of Investment Operations.
** Based on average shares outstanding.
*** The mean between the last bid and ask prices.
**** Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all dividends and distributions at share price during the period, and sale at the share price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
† Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
†† Annualized.
# The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(a) Amount represents less than $0.005.
See Notes to Financial Statements.
71
Financial Highlights (Continued)
PowerShares NASDAQ-100 BuyWrite Portfolio
Year Ended April 30, 2010 | For the Period June 9, 2008* Through April 30, 2009 | ||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||
Net asset value at beginning of period | $ | 18.41 | $ | 24.86 | |||||||
Net investment income (loss)** | (0.00 | )(a) | (0.01 | ) | |||||||
Net realized and unrealized gain (loss) on investments | 5.00 | (6.44 | ) | ||||||||
Total from investment operations | 5.00 | (6.45 | ) | ||||||||
Distributions to shareholders from: | |||||||||||
Net investment income | (1.12 | ) | — | ||||||||
Net realized gains | (0.15 | ) | — | ||||||||
Total distributions | (1.27 | ) | — | ||||||||
Net asset value at end of period | $ | 22.14 | $ | 18.41 | |||||||
Share price at end of period*** | $ | 22.17 | $ | 18.43 | |||||||
NET ASSET VALUE, TOTAL RETURN**** | 27.23 | % | (25.95 | )%(b) | |||||||
SHARE PRICE TOTAL RETURN**** | 27.28 | % | (25.87 | )%(b) | |||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||
Net assets at end of period (000's omitted) | $ | 11,070 | $ | 5,524 | |||||||
Ratio to average net assets of: | |||||||||||
Expenses | 0.75 | % | 0.75 | %† | |||||||
Net investment income (loss) | (0.02 | )% | (0.07 | )%† | |||||||
Portfolio turnover rate †† | 75 | % | 65 | % | |||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | (0.29 | ) | $ | (0.03 | ) |
PowerShares S&P 500 BuyWrite Portfolio
Year Ended April 30, | For the Period December 19, 2007* Through | ||||||||||||||
2010 | 2009 | April 30, 2008 | |||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||
Net asset value at beginning of period | $ | 17.54 | $ | 25.00 | $ | 24.97 | |||||||||
Net investment income** | 0.27 | 0.38 | 0.09 | ||||||||||||
Net realized and unrealized gain (loss) on investments | 4.00 | (7.38 | ) | (0.01 | ) | ||||||||||
Total from investment operations | 4.27 | (7.00 | ) | 0.08 | |||||||||||
Distributions to shareholders from: | |||||||||||||||
Net investment income | (0.29 | ) | (0.46 | ) | (0.05 | ) | |||||||||
Net asset value at end of period | $ | 21.52 | $ | 17.54 | $ | 25.00 | |||||||||
Share price at end of period*** | $ | 21.52 | $ | 17.59 | |||||||||||
NET ASSET VALUE, TOTAL RETURN**** | 24.48 | % | (28.26 | )% | 0.33 | %(c) | |||||||||
SHARE PRICE TOTAL RETURN**** | 24.11 | % | (28.16 | )% | |||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||
Net assets at end of period (000's omitted) | $ | 167,840 | $ | 84,211 | $ | 7,500 | |||||||||
Ratio to average net assets of: | |||||||||||||||
Expenses | 0.75 | % | 0.75 | % | 0.75 | %† | |||||||||
Net investment income | 1.35 | % | 2.09 | % | 1.12 | %† | |||||||||
Portfolio turnover rate †† | 51 | % | 83 | % | 10 | % | |||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | (0.00 | )(a) | $ | (0.05 | ) | $ | 0.09 |
* Commencement of Investment Operations.
** Based on average shares outstanding.
*** The mean between the last bid and ask prices.
**** Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all dividends and distributions at share price during the period, and sale at the share price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
† Annualized.
†† Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
# The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(a) Amount represents less than $0.005.
(b) The net asset value, total return from Fund Inception (June 12, 2008, first day of trading on the exchange) to April 30, 2009 was (23.83)%. The share price total return from Fund Inception to April 30, 2009 was (23.97)%.
(c) The total return from Fund Inception (first day of trading on the exchange) to April 30, 2008 was (0.19)%.
See Notes to Financial Statements.
72
Financial Highlights (Continued)
PowerShares Value Line Industry Rotation Portfolio
Year Ended April 30, | For the Period December 1, 2006* Through | ||||||||||||||||||
2010 | 2009 | 2008 | April 30, 2007 | ||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||
Net asset value at beginning of period | $ | 15.59 | $ | 27.90 | $ | 28.04 | $ | 25.19 | |||||||||||
Net investment income** | 0.05 | 0.10 | 0.01 | 0.00 | (a) | ||||||||||||||
Net realized and unrealized gain (loss) on investments | 4.76 | (12.35 | ) | (0.14 | ) | 2.86 | |||||||||||||
Total from investment operations | 4.81 | (12.25 | ) | (0.13 | ) | 2.86 | |||||||||||||
Distributions to shareholders from: | |||||||||||||||||||
Net investment income | (0.09 | ) | (0.06 | ) | (0.01 | ) | 0.00 | (a) | |||||||||||
Return of capital | — | — | 0.00 | (a) | (0.01 | ) | |||||||||||||
Total distributions | (0.09 | ) | (0.06 | ) | (0.01 | ) | (0.01 | ) | |||||||||||
Net asset value at end of period | $ | 20.31 | $ | 15.59 | $ | 27.90 | $ | 28.04 | |||||||||||
Share price at end of period*** | $ | 20.31 | $ | 15.58 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN**** | 31.03 | % | (43.93 | )% | (0.45 | )% | 11.36 | % | |||||||||||
SHARE PRICE TOTAL RETURN**** | 31.11 | % | (43.93 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 19,290 | $ | 26,508 | $ | 41,850 | $ | 33,650 | |||||||||||
Ratio to average net assets of: | |||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.70 | % | 0.70 | % | 0.73 | % | 0.75 | %† | |||||||||||
Expenses, prior to (Waivers) and/or Recapture | 1.09 | % | 0.94 | % | 0.95 | % | 1.21 | %† | |||||||||||
Net investment income, after (Waivers) and/or Recapture | 0.27 | % | 0.47 | % | 0.03 | % | 0.03 | %† | |||||||||||
Portfolio turnover rate †† | 127 | % | 113 | % | 77 | % | 13 | % | |||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | (0.00 | )(a) | $ | (0.00 | )(a) | $ | 0.00 | (a) | $ | 0.00 | (a) |
PowerShares Value Line TimelinessTM Select Portfolio
Year Ended April 30, | For the Period December 6, 2005* Through | ||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | April 30, 2006 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 9.60 | $ | 16.76 | $ | 17.59 | $ | 17.09 | $ | 15.52 | |||||||||||||
Net investment income (loss)** | 0.00 | (a) | 0.04 | (0.02 | ) | (0.01 | ) | (0.02 | ) | ||||||||||||||
Net realized and unrealized gain (loss) on investments | 2.64 | (7.19 | ) | (0.81 | ) | 0.51 | 1.59 | ||||||||||||||||
Total from investment operations | 2.64 | (7.15 | ) | (0.83 | ) | 0.50 | 1.57 | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.03 | ) | (0.01 | ) | — | — | — | ||||||||||||||||
Net asset value at end of period | $ | 12.21 | $ | 9.60 | $ | 16.76 | $ | 17.59 | $ | 17.09 | |||||||||||||
Share price at end of period*** | $ | 12.21 | $ | 9.60 | |||||||||||||||||||
NET ASSET VALUE, TOTAL RETURN**** | 27.63 | % | (42.66 | )% | (4.72 | )% | 2.93 | % | 10.12 | % | |||||||||||||
SHARE PRICE TOTAL RETURN**** | 27.63 | % | (42.62 | )% | |||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 67,746 | $ | 71,048 | $ | 177,669 | $ | 272,608 | $ | 182,810 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.70 | % | 0.70 | % | 0.70 | % | 0.70 | % | 0.71 | %† | |||||||||||||
Expenses, prior to (Waivers) and/or Recapture | 0.80 | % | 0.72 | % | 0.70 | % | 0.75 | % | 0.78 | %† | |||||||||||||
Net investment income (loss), after (Waivers) and/or Recapture | (0.03 | )% | 0.27 | % | (0.12 | )% | (0.06 | )% | (0.30 | )%† | |||||||||||||
Portfolio turnover rate †† | 138 | % | 143 | % | 101 | % | 113 | % | 39 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | (0.00 | )(a) | $ | (0.00 | )(a) | $ | 0.01 | $ | 0.00 | (a) | — |
* Commencement of Investment Operations.
** Based on average shares outstanding.
*** The mean between the last bid and ask prices.
**** Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all dividends and distributions at share price during the period, and sale at the share price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
† Annualized.
†† Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
# The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(a) Amount represents less than $0.005.
See Notes to Financial Statements.
73
Financial Highlights (Continued)
PowerShares Water Resources Portfolio
Year Ended April 30, | For the Period December 6, 2005* Through | ||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | April 30, 2006 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 14.04 | $ | 20.66 | $ | 19.20 | $ | 18.25 | $ | 15.32 | |||||||||||||
Net investment income** | 0.09 | 0.08 | 0.08 | 0.17 | 0.02 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 4.03 | (6.64 | ) | 1.46 | 0.95 | 2.94 | |||||||||||||||||
Total from investment operations | 4.12 | (6.56 | ) | 1.54 | 1.12 | 2.96 | |||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.11 | ) | (0.06 | ) | (0.08 | ) | (0.17 | ) | (0.03 | ) | |||||||||||||
Net asset value at end of period | $ | 18.05 | $ | 14.04 | $ | 20.66 | $ | 19.20 | $ | 18.25 | |||||||||||||
Share price at end of period*** | $ | 18.27 | $ | 14.02 | |||||||||||||||||||
NET ASSET VALUE, TOTAL RETURN**** | 29.48 | % | (31.76 | )% | 8.02 | % | 6.26 | % | 19.38 | % | |||||||||||||
SHARE PRICE TOTAL RETURN**** | 29.67 | % | (31.63 | )% | |||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 1,335,033 | $ | 1,220,027 | $ | 2,196,652 | $ | 1,606,782 | $ | 991,208 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.64 | % | 0.64 | % | 0.64 | % | 0.66 | % | 0.67 | %† | |||||||||||||
Expenses, prior to (Waivers) and/or Recapture | 0.64 | % | 0.64 | % | 0.63 | % | 0.67 | % | 0.70 | %† | |||||||||||||
Net investment income, after (Waivers) and/or Recapture | 0.57 | % | 0.49 | % | 0.39 | % | 0.96 | % | 0.40 | %† | |||||||||||||
Portfolio turnover rate †† | 20 | % | 33 | % | 23 | % | 27 | % | 2 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | (0.01 | ) | $ | (0.01 | ) | $ | 0.01 | $ | 0.02 | — |
PowerShares WilderHill Clean Energy Portfolio
Year Ended April 30, | |||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 9.03 | $ | 20.94 | $ | 19.29 | $ | 22.38 | $ | 12.86 | |||||||||||||
Net investment income (loss)** | (0.02 | ) | (0.02 | ) | (0.07 | ) | 0.04 | (0.07 | ) | ||||||||||||||
Net realized and unrealized gain (loss) on investments | 1.11 | (11.89 | ) | 1.72 | (3.08 | ) | 9.59 | ||||||||||||||||
Total from investment operations | 1.09 | (11.91 | ) | 1.65 | (3.04 | ) | 9.52 | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | — | — | — | (0.05 | ) | — | |||||||||||||||||
Return of capital | — | — | — | 0.00 | (a) | — | |||||||||||||||||
Total distributions | — | — | — | (0.05 | ) | — | |||||||||||||||||
Net asset value at end of period | $ | 10.12 | $ | 9.03 | $ | 20.94 | $ | 19.29 | $ | 22.38 | |||||||||||||
Share price at end of period*** | $ | 10.22 | $ | 8.99 | |||||||||||||||||||
NET ASSET VALUE, TOTAL RETURN**** | 12.07 | % | (56.88 | )% | 8.55 | % | (13.58 | )% | 74.03 | % | |||||||||||||
SHARE PRICE TOTAL RETURN**** | 12.46 | % | (57.07 | )% | |||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 657,486 | $ | 658,400 | $ | 1,473,893 | $ | 914,345 | $ | 722,940 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.70 | % | 0.69 | % | 0.67 | % | 0.70 | % | 0.71 | % | |||||||||||||
Expenses, prior to (Waivers) and/or Recapture | 0.70 | % | 0.69 | % | 0.67 | % | 0.69 | % | 0.75 | % | |||||||||||||
Net investment income (loss), after (Waivers) and/or Recapture | (0.18 | )% | (0.12 | )% | (0.32 | )% | 0.24 | %††† | (0.39 | )% | |||||||||||||
Portfolio turnover rate †† | 42 | % | 41 | % | 20 | % | 41 | % | 6 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | 0.00 | (a) | $ | (0.00 | )(a) | $ | (0.02 | ) | $ | 0.01 | — |
* Commencement of Investment Operations.
** Based on average shares outstanding.
*** The mean between the last bid and ask prices.
**** Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all dividends and distributions at share price during the period, and sale at the share price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
† Annualized.
†† Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
††† Net investment income per share and the ratio of net investment income to average net assets include a special cash dividend received of $6.72 per share owned of Scottish Power PLC ADR on May 18, 2006. Net investment loss per share and the ratio of net investment loss to average net assets excluding the special dividend were $(0.04) and (0.23)%, respectively, for the year ended April 30, 2007.
# The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(a) Amount represents less than $0.005.
See Notes to Financial Statements.
74
Financial Highlights (Continued)
PowerShares WilderHill Progressive Energy Portfolio
Year Ended April 30, | For the Period October 24, 2006* Through | ||||||||||||||||||
2010 | 2009 | 2008 | April 30, 2007 | ||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||
Net asset value at beginning of period | $ | 17.38 | $ | 28.23 | $ | 28.63 | $ | 24.91 | |||||||||||
Net investment income** | 0.14 | 0.13 | 0.09 | 0.06 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 7.81 | (10.91 | ) | (0.36 | ) | 3.68 | |||||||||||||
Total from investment operations | 7.95 | (10.78 | ) | (0.27 | ) | 3.74 | |||||||||||||
Distributions to shareholders from: | |||||||||||||||||||
Net investment income | (0.14 | ) | (0.07 | ) | (0.12 | ) | (0.02 | ) | |||||||||||
Return of capital | — | — | (0.01 | ) | — | ||||||||||||||
Total distributions | (0.14 | ) | (0.07 | ) | (0.13 | ) | (0.02 | ) | |||||||||||
Net asset value at end of period | $ | 25.19 | $ | 17.38 | $ | 28.23 | $ | 28.63 | |||||||||||
Share price at end of period*** | $ | 25.19 | $ | 17.38 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN**** | 45.96 | % | (38.23 | )% | (0.96 | )% | 15.01 | % | |||||||||||
SHARE PRICE TOTAL RETURN**** | 45.96 | % | (38.16 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 60,451 | $ | 39,970 | $ | 62,097 | $ | 22,905 | |||||||||||
Ratio to average net assets of: | |||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.70 | % | 0.70 | % | 0.73 | % | 0.74 | %† | |||||||||||
Expenses, prior to (Waivers) and/or Recapture | 0.84 | % | 0.86 | % | 0.88 | % | 1.09 | %† | |||||||||||
Net investment income, after (Waivers) and/or Recapture | 0.63 | % | 0.62 | % | 0.30 | % | 0.45 | %† | |||||||||||
Portfolio turnover rate †† | 52 | % | 32 | % | 31 | % | 12 | % | |||||||||||
Undistributed net investment income included in price of units issued and redeemed**# | $ | 0.00 | (a) | $ | 0.00 | (a) | $ | 0.01 | $ | 0.00 | (a) |
* Commencement of Investment Operations.
** Based on average shares outstanding.
*** The mean between the last bid and ask prices.
**** Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all dividends and distributions at share price during the period, and sale at the share price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
† Annualized.
†† Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
# The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(a) Amount represents less than $0.005.
See Notes to Financial Statements.
75
Notes to Financial Statements
PowerShares Exchange-Traded Fund Trust
April 30, 2010
Note 1. Organization
PowerShares Exchange-Traded Fund Trust (the "Trust") was organized as a Massachusetts business trust on June 9, 2000 and is authorized to have multiple series of portfolios. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"). As of April 30, 2010, the Trust offered sixty-two portfolios. This report includes the following portfolios:
Fund Name | Short Name | ||||||
PowerShares Aerospace & Defense Portfolio | "Aerospace & Defense Portfolio" | ||||||
PowerShares CleantechTM Portfolio | "CleantechTM Portfolio" | ||||||
PowerShares DWA Technical LeadersTM Portfolio | "DWA Technical LeadersTM Portfolio" | ||||||
PowerShares Global Listed Private Equity Portfolio | "Global Listed Private Equity Portfolio" | ||||||
PowerShares Golden Dragon Halter USX | "Golden Dragon Halter USX China Porfolio" China Portfolio | ||||||
PowerShares Lux Nanotech Portfolio | "Lux Nanotech Portfolio" | ||||||
PowerShares NASDAQ-100 BuyWrite Portfolio | "NASDAQ-100 BuyWrite Portfolio" | ||||||
PowerShares S&P 500 BuyWrite Portfolio | "S&P 500 BuyWrite Portfolio" | ||||||
PowerShares Value Line Industry | "Value Line Industry Rotation Portfolio" Rotation Portfolio | ||||||
PowerShares Value Line TimelinessTM | "Value Line TimelinessTM Select Portfolio" Select Portfolio | ||||||
PowerShares Water Resources Portfolio | "Water Resources Portfolio" | ||||||
PowerShares WilderHill Clean Energy Portfolio | "WilderHill Clean Energy Portfolio" | ||||||
PowerShares WilderHill Progressive | "WilderHill Progressive Energy Portfolio" Energy Portfolio | ||||||
Each portfolio (the "Fund" and collectively the "Funds") represents a separate series of the Trust. The shares of the Funds are referred to herein as "Shares" or "Fund's Shares." Each Fund's Shares are listed and traded on the NYSE Arca, Inc., except for Shares of the NASDAQ-100 BuyWrite Portfolio which are listed and traded on the NASDAQ Stock Market LLC.
The Funds' market prices may differ to some degree from the net asset value ("NAV") of the Shares of each Fund. Unlike conventional mutual funds, each Fund issues and redeems Shares on a continuous basis, at NAV, only in a large specified number of Shares, each called a "Creation Unit." Creation Units are issued and redeemed generally in-kind for securities included in the relevant index. Except when aggregated in Creation Units, the Shares are not individually redeemable securities of the Funds.
The investment objective of each Fund is to seek investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the following indices (each, an "Underlying Index"):
Fund | Index | ||||||
Aerospace & Defense Portfolio | SPADETM Defense Index | ||||||
CleantechTM Portfolio | The Cleantech IndexTM | ||||||
DWA Technical LeadersTM Portfolio | Dorsey Wright Technical LeadersTM Index | ||||||
Global Listed Private Equity Portfolio | Global Listed Private Equity IndexSM | ||||||
Golden Dragon Halter USX China Portfolio | Halter USX China IndexSM | ||||||
76
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
Fund | Index | ||||||
Lux Nanotech Portfolio | Lux Nanotech IndexTM | ||||||
NASDAQ-100 BuyWrite Portfolio | CBOE NASDAQ-100 BuyWrite IndexTM | ||||||
S&P 500 BuyWrite Portfolio | CBOE S&P 500 BuyWrite Index | ||||||
Value Line Industry Rotation Portfolio | Value Line Industry Rotation Index | ||||||
Value Line TimelinessTM Select Portfolio | Value Line TimelinessTM Select Index | ||||||
Water Resources Portfolio | Palisades Water Index | ||||||
WilderHill Clean Energy Portfolio | WilderHill Clean Energy Index | ||||||
WilderHill Progressive Energy Portfolio | WilderHill Progressive Energy Index | ||||||
Note 2. Significant Accounting Policies
The preparation of the financial statements in accordance with General Accepted Accounting Principles ("GAAP") in the United States of America requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements, including estimates and assumptions related to taxation. Actual results could differ from these estimates. In addition, the Funds monitor for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
A. Security Valuation
Securities, including restricted securities, are valued according to the following policies.
A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. Listed options, if no closing price is available, are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices.
Investments in open-end registered investment companies not traded on an exchange are valued at the end of day NAV per share.
Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the London world markets. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the New York Stock Exchange ("NYSE"), closing market quotations may become unreliable. If between the time trading ends
77
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the ind ependent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources.
Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust's officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security's fair value.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer's assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B. Other Risks
Replication Management Risk. The Funds are not "actively" managed and do not seek returns in excess of their respective Underlying Indices. Therefore, they would not necessarily sell a stock because the stock's issuer was in financial trouble unless that stock is removed from its Underlying Index.
With respect to the Global Listed Private Equity Portfolio, the Fund's use of a representative sampling approach will result in its holding a smaller number of securities than are in its Underlying Index. As a result, an adverse development respecting an issuer of securities held by the Fund could result in a greater decline in NAV than would be the case if the Fund held all of the securities in its Underlying Index. To the extent the assets in the Fund are smaller, these risks will be greater.
Non-Diversified Fund Risk. Except for Cleantech Portfolio, Value Line Industry Rotation Portfolio and Value Line Timeliness Select Portfolio, each Fund is considered non-diversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single investment could cause greater fluctuations in Share price than would occur in a diversified fund.
Concentration Risk. If a Fund concentrates its investments in an industry or group of industries, the value of the Fund's Shares may rise and fall more than the value of shares of a fund that invests in a broader range of securities.
78
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
Non-Correlation Risk. Each Fund's return may not match the return of its Underlying Index for a number of reasons. For example, each Fund incurs operating expenses not applicable to its Underlying Index, and incurs costs in buying and selling securities, especially when rebalancing the securities holdings to reflect changes in the composition of its Underlying Index. In addition, the performance of each Fund and its Underlying Index may vary due to asset valuation differences and differences between each Fund's portfolio and its Underlying Index resulting from legal restrictions, cost or liquidity constraints.
C. Federal Income Taxes
Each Fund intends to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of the Fund's taxable earnings to its shareholders. As such, the Funds will not be subject to Federal income taxes on otherwise taxable income (including net realized gains) that is distributed to the shareholders. Therefore, no provision for Federal income taxes is recorded in the financial statements.
Income and capital gain distributions are determined in accordance with Federal income tax regulations, which may differ from GAAP. These differences are primarily due to differing book and tax treatments for in-kind transactions, losses deferred due to wash sales, and passive foreign investment company adjustments, if any.
The Funds file tax returns in the United States Federal jurisdiction and certain other jurisdictions. Generally, a Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
D. Investment Income and Investment Transactions
Dividend income is recorded on the ex-dividend date net of foreign taxes withheld, if any. Interest income is recorded on the accrual basis. Investment transactions are recorded on the trade date. Realized gains and losses from the sale or disposition of securities are calculated on the specific identified cost basis. Dividends and interest received by a Fund may give rise to withholding and other taxes imposed by foreign countries. Corporate actions (including cash dividends) are recorded net of non-reclaimable foreign tax withholdings on the ex-dividend date. Tax conventions between certain countries and the United States may reduce or eliminate such taxes.
E. Expenses
Expenses of the Trust, which are directly identifiable to a specific Fund, are applied to that Fund. Expenses which are not readily identifiable to a specific Fund are allocated in such a manner as deemed equitable, taking into consideration the nature and type of expense and the relative net assets of each Fund.
Each Fund (except for S&P 500 BuyWrite Portfolio and NASDAQ-100 BuyWrite Portfolio) is responsible for all of its expenses, including the investment advisory fees, costs of transfer agency, custody, fund administration, legal, audit and other services, interest, taxes, brokerage commissions and other expenses connected with executions of portfolio transactions, any distribution fees or expenses and extraordinary expenses.
The S&P 500 BuyWrite Portfolio and NASDAQ-100 BuyWrite Portfolio have agreed to pay an annual unitary management fee to Invesco PowerShares Capital Management LLC (the "Adviser"). The Adviser has agreed to pay for substantially all expenses of the S&P 500 BuyWrite Portfolio and NASDAQ-100 BuyWrite Portfolio, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for advisory fees, distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses.
79
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
F. Dividends and Distributions to Shareholders
Each Fund declares and pays dividends from net investment income, if any, to its shareholders quarterly and records on ex-dividend date. Each Fund distributes net realized taxable capital gains, if any, generally annually in cash and records on ex-dividend date. Such distributions on a tax basis are determined in conformity with income tax regulations which may differ from GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in such Fund's financial statements as a tax return of capital at fiscal period-end.
G. Equalization
All Funds use the accounting practice of equalization. This accounting method is used to keep the continuing shareholder's per Share equity in undistributed net investment income from being affected by the continuous sales and redemptions of capital Shares. Equalization is calculated on a per Share basis whereby a portion of the proceeds from the sales and cost of repurchases of capital Shares is applied to undistributed net investment income. The amount of equalization is disclosed in the Statements of Changes in Net Assets as undistributed net investment income (loss) included in the price of capital Shares issued or redeemed. The distributions to shareholders of amounts so applied may be deemed to be a return of capital for tax purposes to the extent that such distributions exceed taxable income.
H. Option Contracts Written
The S&P 500 BuyWrite Portfolio and NASDAQ-100 BuyWrite Portfolio may engage in certain strategies involving options to manage or minimize the risk of its investments or for investment purposes. A call option gives the purchaser of such option the right to buy, and the writer (the Fund) the obligation to sell, the underlying security at the stated exercise price during the option period. When a Fund writes (sells) call options, the amount of the premium received is recorded as a liability in the Statement of Assets and Liabilities and is subsequently "marked-to-market" to reflect the current value of the option written. The difference between the premium received and the current value of the option is recorded as unrealized appreciation or depreciation. The net change in unrealized appreciation (depreciation) is reported in the Statement of Operations. If a written call option expires, or if the Fund enters into a closing pur chase transaction, the Fund realizes a gain (or a loss if the closing purchase transaction exceeds the premium received when the option was written) without regard to any unrealized gain or loss on the underlying security, and the liability related to such option is extinguished. If a written option is exercised, the Fund realizes a gain or loss from the sale of the underlying security and the proceeds of the sale are increased by the premium originally received. The primary risk in writing a call option is market risk; the Fund gives up the opportunity for profit if the market price of the underlying security increases and the option is exercised but will continue to bear the risk of loss should the price of the underlying security decline. There is also a risk the Fund may not be able to enter into a closing transaction because of an illiquid market.
Note 3. Derivative Investments
S&P 500 BuyWrite Portfolio and NASDAQ-100 BuyWrite Portfolio have implemented new required disclosures about derivative instruments and hedging activities in accordance with GAAP. GAAP has intended to improve financial reporting about derivative instruments and hedging activities by requiring enhanced disclosures to enable investors to better understand their effects on an entity's financial position and financial performance. The enhanced disclosure has no impact on the results of operations reported in the financial statements.
80
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
Value of Derivative Instruments at Year-End
The table below summarizes the value of the Fund's derivative instruments, detailed by primary risk exposure, held as of April 30, 2010:
Value | |||||||||||
Risk Exposure/Derivative Type | Assets | Liabilities | |||||||||
NASDAQ-100 BuyWrite Portfolio | |||||||||||
Equity risk | |||||||||||
Options written contracts | $ | — | $ | (129,963 | ) | ||||||
S&P 500 BuyWrite Portfolio | |||||||||||
Equity risk | |||||||||||
Options written contracts | $ | — | $ | (1,857,700 | ) |
Effect of Derivative Instruments for the year ended April 30, 2010
The table below summarizes the gains (losses) on derivative instruments, detailed by primary risk exposure, recognized in earnings during the year:
Location of Gain (Loss) on Statements of Operations | |||||||
Options | |||||||
NASDAQ-100 BuyWrite Portfolio* | |||||||
Realized Gain (Loss) | |||||||
Equity risk | $ | (1,393,398 | ) | ||||
Change in Unrealized Appreciation | |||||||
Equity risk | 148,755 | ||||||
Total | $ | (1,244,643 | ) | ||||
S&P 500 BuyWrite Portfolio** | |||||||
Realized Gain (Loss) | |||||||
Equity risk | $ | (15,258,419 | ) | ||||
Change in Unrealized Appreciation | |||||||
Equity risk | 415,292 | ||||||
Total | $ | (14,843,127 | ) |
* The average value of outstanding options during the year was $170,637.
** The average value of outstanding options during the year was $2,319,569.
81
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
NASDAQ-100 BuyWrite Portfolio
Transactions During the Year | |||||||||||
Call Option Contracts | |||||||||||
Number of Contracts | Premiums Received | ||||||||||
Beginning of year | 52 | $ | 175,051 | ||||||||
Written | 643 | 2,198,058 | |||||||||
Closed | (585 | ) | (2,021,386 | ) | |||||||
Expired | (46 | ) | (162,010 | ) | |||||||
End of year | 64 | $ | 189,713 |
Open Options Written at Year End | |||||||||||||||||||||||||||
Contract Month | Strike Price | Number of Contracts | Premiums Received | Value | Unrealized Appreciation | ||||||||||||||||||||||
Call Option Mini-NASDAQ-100 Index | May-10 | $ | 202.5 | 9 | $ | 2,742 | $ | 2,088 | $ | 654 | |||||||||||||||||
Call Option NASDAQ-100 Index | May-10 | 2,025 | 55 | 186,971 | 127,875 | 59,096 | |||||||||||||||||||||
64 | $ | 189,713 | $ | 129,963 | $ | 59,750 |
S&P 500 BuyWrite Portfolio
Transactions During the Year | |||||||||||
Call Option Contracts | |||||||||||
Number of Contracts | Premiums Received | ||||||||||
Beginning of year | 993 | $ | 2,957,953 | ||||||||
Written | 14,978 | 31,663,808 | |||||||||
Closed | (13,094 | ) | (29,308,573 | ) | |||||||
Expired | (1,448 | ) | (2,728,588 | ) | |||||||
End of year | 1,429 | $ | 2,584,600 |
Open Options Written at Year End | |||||||||||||||||||||||||||
Contract Month | Strike Price | Number of Contracts | Premiums Received | Value | Unrealized Appreciation | ||||||||||||||||||||||
Call Option S&P 500 Index | May-10 | $ | 1,200 | 1,429 | $ | 2,584,600 | $ | 1,857,700 | $ | 726,900 |
Note 4. Investment Advisory Agreement and Other Agreements
The Trust has entered into an Investment Advisory Agreement with the Adviser pursuant to which the Adviser has overall responsibility as the Funds' investment adviser for the selection and ongoing monitoring of the Funds' investments, managing the Funds' business affairs and providing certain clerical, bookkeeping and other administrative services. Each Fund (except for S&P 500 BuyWrite Portfolio and NASDAQ-100 BuyWrite Portfolio) has agreed to pay the Adviser an annual fee of 0.50% of the Fund's
82
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
average daily net assets. The S&P 500 BuyWrite Portfolio and NASDAQ-100 BuyWrite Portfolio each have agreed to pay the Adviser an annual unitary management fee of 0.75% of its average daily net assets and the Adviser has agreed to pay for substantially all expenses of S&P 500 BuyWrite Portfolio and NASDAQ-100 BuyWrite Portfolio, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for advisory fees and distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses.
The Adviser has entered into an Amended and Restated Excess Expense Agreement (the "Excess Expense Agreement") with the Trust, pursuant to which the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of each Fund (except for S&P 500 BuyWrite Portfolio and NASDAQ-100 BuyWrite Portfolio) (excluding interest expense, brokerage commissions and other trading expenses, sub-licensing fees, offering costs, taxes and extraordinary expenses) from exceeding 0.60% of the Fund's average daily net assets per year (the "Expense Cap"), at least until August 31, 2011. Offering costs excluded from the Expense Cap are: (a) initial legal fees pertaining to the Funds' Shares offered for sale; (b) initial Securities and Exchange Commission and state registration fees; and (c) initial fees paid to be listed on an exchange.
The Excess Expense Agreement provides that the expenses borne by the Adviser are subject to recapture by the Adviser for up to three years from the date the fee or expense was borne by the Adviser, but no recapture payment will be made by a Fund if it would result in the Fund exceeding its Expense Cap as specified above.
The Excess Expense Agreement does not apply to the S&P 500 BuyWrite Portfolio and NASDAQ-100 BuyWrite Portfolio.
The net amount of fees waived and other expenses assumed by the Adviser and the amount of recapture paid to the Adviser pursuant to the Excess Expense Agreement are collectively referred to as "(Waivers) and/or Recapture." The net amounts of (Waivers) and/or Recapture for the fiscal year ended April 30, 2010 are shown on the Statements of Operations.
The amounts available for potential future recapture by the Adviser under the Excess Expense Agreement and the expiration schedule at April 30, 2010 are as follows:
Total Potential | Potential Recapture Amounts Expiring | ||||||||||||||||||
Recapture Amounts | 04/30/11 | 04/30/12 | 04/30/13 | ||||||||||||||||
Aerospace & Defense Portfolio | $ | 87,595 | $ | 11,515 | $ | 39,737 | $ | 36,343 | |||||||||||
CleantechTM Portfolio | 184,155 | 52,043 | 71,541 | 60,571 | |||||||||||||||
DWA Technical LeadersTM Portfolio | 43,218 | — | — | 43,218 | |||||||||||||||
Global Listed Private Equity Portfolio | 123,409 | 24,401 | 68,342 | 30,666 | |||||||||||||||
Golden Dragon Halter USX China Portfolio | 169,214 | — | 96,968 | 72,246 | |||||||||||||||
Lux Nanotech Portfolio | 236,672 | 40,537 | 115,193 | 80,942 | |||||||||||||||
Value Line Industry Rotation Portfolio | 281,127 | 92,038 | 91,574 | 97,515 | |||||||||||||||
Value Line TimelinessTM Select Portfolio | 134,747 | 23,833 | 43,024 | 67,890 | |||||||||||||||
WilderHill Clean Energy Portfolio | 118,701 | — | 24,724 | 93,977 | |||||||||||||||
WilderHill Progressive Energy Portfolio | 232,843 | 79,132 | 78,641 | 75,070 |
83
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
The Trust has entered into a Distribution Agreement with Invesco Distributors, Inc. (formerly, Invesco Aim Distributors, Inc.) (the "Distributor"), which serves as the distributor of Creation Units for each Fund. The Distributor does not maintain a secondary market in the Shares.
The Adviser has entered into a licensing agreement for each Fund with the following Licensors:
Fund | Licensor | ||||||
Aerospace & Defense Portfolio | International Space Business Council | ||||||
CleantechTM Portfolio | Cleantech Capital Indices LLC | ||||||
DWA Technical LeadersTM Portfolio | Dorsey Wright & Associates, Inc. | ||||||
Global Listed Private Equity Portfolio | Red Rocks Capital Partners LLC | ||||||
Golden Dragon Halter USX China Portfolio | Halter Financial Group, Inc. | ||||||
Lux Nanotech Porfolio | Lux Research, Inc. | ||||||
NASDAQ-100 BuyWrite Portfolio | NASDAQ OMX Group, Inc. | ||||||
S&P 500 BuyWrite Portfolio | Standard & Poor's ("S&P"), a division of The McGraw-Hill Companies, Inc. | ||||||
Value Line Industry Rotation Portfolio | Value Line Publishing, Inc. | ||||||
Value Line TimelinessTM Select Portfolio | Value Line Publishing, Inc. | ||||||
Water Resources Portfolio | Hydrogen Ventures | ||||||
WilderHill Clean Energy Portfolio | WilderShares, LLC | ||||||
WilderHill Progressive Energy Portfolio | WilderShares, LLC | ||||||
Each Underlying Index name trademark is owned by the respective Licensors. These trademarks have been licensed to the Adviser for use with the Funds. The Funds are not sponsored, endorsed, sold or promoted by the Licensors and the Licensors make no representation regarding the advisability of investing in any of these Funds. The Trust has entered into a sub-licensing agreement under which the Funds (other than the NASDAQ-100 BuyWrite Portfolio and S&P 500 BuyWrite Portfolio) are required to pay the sub-licensing fees which are shown on the Statements of Operations.
The Trust has entered into service agreements whereby The Bank of New York Mellon, a wholly-owned subsidiary of The Bank of New York Mellon Corporation, serves as the administrator, custodian, fund accountant and transfer agent for each Fund.
Note 5. Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3) generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment's assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others.
84
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of April 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
Investment in Securities | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Aerospace & Defense Portfolio | |||||||||||||||||||
Equity Securities | $ | 137,394,296 | $ | — | $ | — | $ | 137,394,296 | |||||||||||
Money Market Fund | 53,015 | — | — | 53,015 | |||||||||||||||
Total Investments | 137,447,311 | — | — | 137,447,311 | |||||||||||||||
CleantechTM Portfolio | |||||||||||||||||||
Equity Securities | 97,926,345 | 62,062,771 | — | 159,989,116 | |||||||||||||||
Money Market Fund | 49,854 | — | — | 49,854 | |||||||||||||||
Total Investments | 97,976,199 | 62,062,771 | — | 160,038,970 | |||||||||||||||
DWA Technical LeadersTM Portfolio | |||||||||||||||||||
Equity Securities | 159,369,090 | — | — | 159,369,090 | |||||||||||||||
Money Market Fund | 156,526 | — | — | 156,526 | |||||||||||||||
Total Investments | 159,525,616 | — | — | 159,525,616 | |||||||||||||||
Global Listed Private Equity Portfolio | |||||||||||||||||||
Equity Securities | 94,191,291 | 118,569,977 | — | 212,761,268 | |||||||||||||||
Money Market Fund | 135,318 | — | — | 135,318 | |||||||||||||||
Total Investments | 94,326,609 | 118,569,977 | — | 212,896,586 | |||||||||||||||
Golden Dragon Halter USX China Portfolio | |||||||||||||||||||
Equity Securities | 455,454,548 | — | — | 455,454,548 | |||||||||||||||
Lux Nanotech Portfolio | |||||||||||||||||||
Equity Securities | 55,383,929 | — | — | 55,383,929 | |||||||||||||||
Money Market Fund | 11,900 | — | — | 11,900 | |||||||||||||||
Total Investments | 55,395,829 | — | — | 55,395,829 | |||||||||||||||
NASDAQ-100 BuyWrite Portfolio | |||||||||||||||||||
Equity Securities | 11,201,986 | — | — | 11,201,986 | |||||||||||||||
Money Market Fund | 3,747 | — | — | 3,747 | |||||||||||||||
Other Investments* | 59,750 | — | — | 59,750 | |||||||||||||||
Total Investments | 11,265,483 | — | — | 11,265,483 |
* Other investments include written options which are included at unrealized appreciation.
85
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
Investment in Securities | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
S&P 500 BuyWrite Portfolio | |||||||||||||||||||
Equity Securities | $ | 169,678,793 | $ | — | $ | — | $ | 169,678,793 | |||||||||||
Other Investments* | 726,900 | — | — | 726,900 | |||||||||||||||
Total Investments | 170,405,693 | — | — | 170,405,693 | |||||||||||||||
Value Line Industry Rotation Portfolio | |||||||||||||||||||
Equity Securities | 19,299,463 | — | — | 19,299,463 | |||||||||||||||
Money Market Fund | 25,565 | — | — | 25,565 | |||||||||||||||
Total Investments | 19,325,028 | — | — | 19,325,028 | |||||||||||||||
Value Line TimelinessTM Select Portfolio | |||||||||||||||||||
Equity Securities | 67,759,548 | — | — | 67,759,548 | |||||||||||||||
Money Market Fund | 80,038 | — | — | 80,038 | |||||||||||||||
Total Investments | 67,839,586 | — | — | 67,839,586 | |||||||||||||||
Water Resources Portfolio | |||||||||||||||||||
Equity Securities | 1,335,089,516 | — | — | 1,335,089,516 | |||||||||||||||
Money Market Fund | 12,974 | — | — | 12,974 | |||||||||||||||
Total Investments | 1,335,102,490 | — | — | 1,335,102,490 | |||||||||||||||
WilderHill Clean Energy Portfolio | |||||||||||||||||||
Equity Securities | 657,608,172 | — | — | 657,608,172 | |||||||||||||||
Money Market Fund | 166,428 | — | — | 166,428 | |||||||||||||||
Total Investments | 657,774,600 | — | — | 657,774,600 | |||||||||||||||
WilderHill Progressive Energy Portfolio | |||||||||||||||||||
Equity Securities | 60,391,698 | — | — | 60,391,698 | |||||||||||||||
Money Market Fund | 60,796 | — | — | 60,796 | |||||||||||||||
Total Investments | 60,452,494 | — | — | 60,452,494 |
* Other investments include written options which are included at unrealized appreciation.
Note 6. Investments in Affiliates
The 1940 Act defines "affiliate" to include issuers of which a fund holds 5% or more of the outstanding voting securities. The following is a summary of the transactions with affiliates for the fiscal year ended April 30, 2010.
Water Resources Portfolio
Value April 30, 2009 | Purchase at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain (Loss) | Value April 30, 2010 | Dividend Income | |||||||||||||||||||||||||
Ameron International Corp. | $ | 46,503,537 | $ | 15,647,850 | $ | (12,686,660 | ) | $ | 12,772,331 | $ | (4,650,852 | ) | $ | 57,586,206 | $ | 994,892 | |||||||||||||||
Badger Meter, Inc. | 51,853,188 | 2,146,729 | (1,432,695 | ) | 3,166,209 | 39,371 | 55,772,802 | 627,076 | |||||||||||||||||||||||
Consolidated Water Co. Ltd. (Cayman Islands) | 17,514,975 | 7,397,854 | (7,738,439 | ) | 3,504,591 | (2,159,716 | ) | 18,519,265 | 329,663 |
86
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
Value April 30, 2009 | Purchase at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain (Loss) | Value April 30, 2010 | Dividend Income | |||||||||||||||||||||||||
Franklin Electric Co., Inc. | $ | 36,000,603 | $ | 6,715,678 | $ | (11,397,982 | ) | $ | 18,449,253 | $ | (2,212,258 | ) | $ | 47,555,294 | $ | 757,684 | |||||||||||||||
Gorman-Rupp Co. (The) | 31,992,579 | 1,153,730 | (1,436,110 | ) | 10,362,675 | (463,253 | ) | 41,609,621 | 614,388 | ||||||||||||||||||||||
Layne Christensen Co. | 36,214,914 | 9,683,852 | (18,043,598 | ) | 14,146,137 | (2,978,836 | ) | 39,022,469 | — | ||||||||||||||||||||||
Lindsay Corp. | 43,045,121 | 1,930,737 | (1,315,033 | ) | 230,156 | (1,155,073 | ) | 42,735,908 | 349,234 | ||||||||||||||||||||||
Mueller Water Products, Inc., Class A | 43,547,026 | 6,087,504 | (17,502,101 | ) | 28,534,676 | (14,273,037 | ) | 46,394,068 | 642,908 | ||||||||||||||||||||||
Northwest Pipe Co. | 31,492,824 | 854,559 | (849,753 | ) | (11,172,366 | ) | (273,488 | ) | 20,051,776 | — | |||||||||||||||||||||
Total Investments in Affiliates | $ | 338,164,767 | $ | 51,618,493 | $ | (72,402,371 | ) | $ | 79,993,662 | $ | (28,127,142 | ) | $ | 369,247,409 | $ | 4,315,845 |
WilderHill Clean Energy Portfolio
Value April 30, 2009 | Purchase at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain (Loss) | Value April 30, 2010 | Dividend Income | |||||||||||||||||||||||||
Advanced Battery Technologies, Inc. | $ | 3,551,765 | $ | 17,065,064 | $ | (7,210,351 | ) | $ | 170,746 | $ | (737,110 | ) | $ | 12,840,114 | $ | — | |||||||||||||||
Amerigon, Inc. | 4,732,762 | 9,100,324 | (4,069,259 | ) | 4,842,312 | (3,214,384 | ) | 11,391,755 | — | ||||||||||||||||||||||
Ballard Power Systems, Inc. (Canada) | 4,355,184 | 14,510,242 | (5,993,854 | ) | 1,204,466 | (4,112,353 | ) | 9,963,685 | — | ||||||||||||||||||||||
Comverge, Inc. | 3,126,024 | 19,059,000 | (6,987,624 | ) | 691,108 | (1,084,796 | ) | 14,803,712 | — | ||||||||||||||||||||||
FuelCell Energy, Inc. | 3,306,058 | 22,711,334 | (8,943,739 | ) | (71,116 | ) | (4,900,642 | ) | 12,101,895 | — | |||||||||||||||||||||
Total Investments in Affiliates | $ | 19,071,793 | $ | 82,445,964 | $ | (33,204,827 | ) | $ | 6,837,516 | $ | (14,049,285 | ) | $ | 61,101,161 | $ | — |
The Fund's Adviser is a subsidiary of Invesco Ltd. and therefore, Invesco Ltd. is considered to be affiliated with the Fund. The table below shows the transactions in and earnings from the investment in Invesco Ltd. for the year ended April 30, 2010.
S&P 500 BuyWrite Portfolio
Value April 30, 2009 | Purchase at Cost | Proceeds from Sales | Change in Unrealized Appreciation | Realized Gain (Loss) | Value April 30, 2010 | Dividend Income | |||||||||||||||||||||||||
Invesco Ltd. | $ | 63,782 | $ | 75,315 | $ | (25,453 | ) | $ | 46,258 | $ | (3,846 | ) | $ | 156,056 | $ | 2,323 |
Note 7. Distributions to Shareholders and Tax Components of Net Assets
Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended April 30, 2010 and 2009:
2010 | 2009 | ||||||||||||||||||||||
Ordinary Income | Return of Capital | Long-Term Capital Gains | Ordinary Income | Return of Capital | |||||||||||||||||||
Aerospace & Defense Portfolio | $ | 1,645,392 | $ | — | $ | — | $ | 1,446,628 | $ | — | |||||||||||||
CleantechTM Portfolio | 223,251 | 75,171 | — | — | — | ||||||||||||||||||
DWA Technical LeadersTM Portfolio | 843,823 | — | — | 486,080 | — | ||||||||||||||||||
Global Listed Private Equity Portfolio | 4,710,562 | — | — | 6,364,696 | — |
87
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
2010 | 2009 | ||||||||||||||||||||||
Ordinary Income | Return of Capital | Long-Term Capital Gains | Ordinary Income | Return of Capital | |||||||||||||||||||
Golden Dragon Halter USX China Portfolio | $ | 3,271,139 | $ | 501,022 | $ | — | $ | 2,867,142 | $ | — | |||||||||||||
Lux Nanotech Portfolio | 101,214 | 16 | — | — | — | ||||||||||||||||||
NASDAQ-100 BuyWrite Portfolio | 447,704 | — | 58,556 | �� | — | ||||||||||||||||||
S&P 500 BuyWrite Portfolio | 1,778,095 | — | — | 887,380 | — | ||||||||||||||||||
Value Line Industry Rotation Portfolio | 145,806 | — | — | 100,862 | — | ||||||||||||||||||
Value Line TimelinessTM Select Portfolio | 237,779 | — | — | 95,040 | — | ||||||||||||||||||
Water Resources Portfolio | 9,289,108 | — | — | 6,232,539 | — | ||||||||||||||||||
WilderHill Clean Energy Portfolio | — | — | — | — | — | ||||||||||||||||||
WilderHill Progressive Energy Portfolio | 347,466 | — | — | 175,935 | — |
Tax Components of Net Assets at Fiscal Year-End:
Undistributed Ordinary Income | Temporary Book/Tax Differences | Net Unrealized Appreciation (Depreciation) | Capital Loss Carryforward | Post-October* Deferrals | Shares of Beneficial Interest | Total Net Assets | |||||||||||||||||||||||||
Aerospace & Defense Portfolio | $ | 132,878 | $ | (6,854 | ) | $ | (23,070,118 | ) | $ | (16,378,675 | ) | $ | (8,326,569 | ) | $ | 184,986,888 | $ | 137,337,550 | |||||||||||||
CleantechTM Portfolio | — | (5,087 | ) | (9,374,325 | ) | (40,698,940 | ) | (1,157,255 | ) | 211,256,759 | 160,021,152 | ||||||||||||||||||||
DWA Technical LeadersTM Portfolio | 127,706 | (7,428 | ) | 33,102,456 | (158,038,110 | ) | (2,510,127 | ) | 286,696,813 | 159,371,310 | |||||||||||||||||||||
Global Listed Private Equity Portfolio | 2,712,583 | (4,820 | ) | (539,264 | ) | (58,739,549 | ) | (3,193,506 | ) | 271,644,014 | 211,879,458 | ||||||||||||||||||||
Golden Dragon Halter USX China Portfolio | — | (11,976 | ) | (39,467,920 | ) | (102,291,315 | ) | (24,398,747 | ) | 621,693,245 | 455,523,287 | ||||||||||||||||||||
Lux Nanotech Portfolio | — | (4,088 | ) | (10,220,715 | ) | (46,849,632 | ) | (4,681,936 | ) | 117,046,442 | 55,290,071 | ||||||||||||||||||||
NASDAQ-100 BuyWrite Portfolio | 908,249 | — | — | — | (429 | ) | 10,162,383 | 11,070,203 | |||||||||||||||||||||||
S&P 500 BuyWrite Portfolio | 9,302,848 | — | — | — | — | 158,536,980 | 167,839,828 | ||||||||||||||||||||||||
Value Line Industry Rotation Portfolio | 4,738 | (3,322 | ) | 2,080,132 | (27,446,081 | ) | (849,999 | ) | 45,504,622 | 19,290,090 | |||||||||||||||||||||
Value Line TimelinessTM Select Portfolio | — | (5,321 | ) | 8,618,248 | (129,450,524 | ) | (4,338,261 | ) | 192,921,373 | 67,745,515 | |||||||||||||||||||||
Water Resources Portfolio | 437,557 | (39,034 | ) | 7,650,863 | (374,586,162 | ) | (16,984,854 | ) | 1,718,554,929 | 1,335,033,299 | |||||||||||||||||||||
WilderHill Clean Energy Portfolio | — | (24,281 | ) | (175,168,689 | ) | (858,709,990 | ) | (146,292,554 | ) | 1,837,681,122 | 657,485,608 | ||||||||||||||||||||
WilderHill Progressive Energy Portfolio | 122,857 | (3,676 | ) | 5,834,909 | (20,933,146 | ) | (123,602 | ) | 75,553,872 | 60,451,214 |
* Capital, currency and Passive Foreign Investment Company ("PFIC") losses incurred after October 31 ("Post-October losses") within the taxable year are deemed to arise on the first business day of each Fund's next taxable year.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Funds
88
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
to utilize. The ability to utilize capital loss carryforward in the future may be limited under Internal Revenue Code rules and related regulations based on the results of future transactions.
The following Funds have capital loss carryforward amounts as of April 30, 2010, which expire on April 30 of each year listed below:
2014 | 2015 | 2016 | 2017 | 2018 | Total* | ||||||||||||||||||||||
Aerospace & Defense Portfolio | $ | — | $ | 104,662 | $ | 2,374,303 | $ | 7,470,897 | $ | 6,428,813 | $ | 16,378,675 | |||||||||||||||
CleantechTM Portfolio | — | — | 1,171,839 | 14,341,075 | 25,186,026 | 40,698,940 | |||||||||||||||||||||
DWA Technical LeadersTM Portfolio | — | — | 5,046,566 | 92,771,702 | 60,219,842 | 158,038,110 | |||||||||||||||||||||
Global Listed Private Equity Portfolio | — | — | 4,388,498 | 7,687,052 | 46,663,999 | 58,739,549 | |||||||||||||||||||||
Golden Dragon Halter USX China Portfolio | 1,018,146 | 3,128,677 | 1,235,904 | 22,836,421 | 74,072,167 | 102,291,315 | |||||||||||||||||||||
Lux Nanotech Portfolio | — | 3,986,980 | 793,005 | 27,406,131 | 14,663,516 | 46,849,632 | |||||||||||||||||||||
NASDAQ-100 BuyWrite Portfolio** | — | — | — | — | — | — | |||||||||||||||||||||
S&P 500 BuyWrite Portfolio*** | — | — | — | — | — | — | |||||||||||||||||||||
Value Line Industry Rotation Portfolio | — | — | 3,798,072 | 6,546,039 | 17,101,970 | 27,446,081 | |||||||||||||||||||||
Value Line TimelinessTM Select Portfolio | — | 28,753,751 | 21,013,690 | 37,241,965 | 42,441,118 | 129,450,524 | |||||||||||||||||||||
Water Resources Portfolio | — | 11,876,489 | 3,553,481 | 93,208,162 | 265,948,030 | 374,586,162 | |||||||||||||||||||||
WilderHill Clean Energy Portfolio | 2,098,368 | 89,533,576 | 44,707,703 | 261,712,498 | 460,657,845 | 858,709,990 | |||||||||||||||||||||
WilderHill Progressive Energy Portfolio | — | — | 179,432 | 8,319,827 | 12,433,887 | 20,933,146 |
* Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code.
** During the fiscal year ended April 30, 2010, the NASDAQ-100 BuyWrite Portfolio utilized capital loss carryforwards of $406,407 to offset realized gains.
*** During the fiscal year ended April 30, 2010, the S&P 500 BuyWrite Portfolio utilized capital loss carryforwards of $10,526,359 to offset realized gains.
Note 8. Investment Transactions
For the fiscal year ended April 30, 2010, the cost of securities purchased and proceeds from sales of securities, excluding short-term securities, money market funds and in-kind transactions, were as follows:
Purchases | Sales | ||||||||||
Aerospace & Defense Portfolio | $ | 21,915,605 | $ | 22,202,398 | |||||||
CleantechTM Portfolio | 42,597,165 | 42,789,523 | |||||||||
DWA Technical LeadersTM Portfolio | 67,510,978 | 69,000,303 | |||||||||
Global Listed Private Equity Portfolio | 206,687,480 | 175,321,975 | |||||||||
Golden Dragon Halter USX China Portfolio | 145,090,984 | 146,263,718 | |||||||||
Lux Nanotech Portfolio | 30,950,098 | 29,890,294 | |||||||||
NASDAQ-100 BuyWrite Portfolio | 6,529,698 | 6,396,359 | |||||||||
S&P 500 BuyWrite Portfolio | 66,473,471 | 70,754,767 | |||||||||
Value Line Industry Rotation Portfolio | 31,577,689 | 31,823,652 | |||||||||
Value Line TimelinessTM Select Portfolio | 94,547,843 | 94,638,702 |
89
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
Purchases | Sales | ||||||||||
Water Resources Portfolio | $ | 256,587,311 | $ | 296,279,765 | |||||||
WilderHill Clean Energy Portfolio | 300,103,130 | 303,801,376 | |||||||||
WilderHill Progressive Energy Portfolio | 27,053,559 | 26,944,748 |
For the fiscal year ended April 30, 2010, in-kind transactions associated with creations and redemptions were as follows:
Securities Received | Securities Delivered | ||||||||||
Aerospace & Defense Portfolio | $ | 13,560,618 | $ | 37,127,342 | |||||||
CleantechTM Portfolio | 24,105,554 | 9,608,398 | |||||||||
DWA Technical LeadersTM Portfolio | 154,607,322 | 183,481,225 | |||||||||
Global Listed Private Equity Portfolio | 132,601,326 | 60,155,005 | |||||||||
Golden Dragon Halter USX China Portfolio | 142,858,056 | 95,043,737 | |||||||||
Lux Nanotech Portfolio | 7,394,652 | 7,119,568 | |||||||||
NASDAQ-100 BuyWrite Portfolio | 2,214,512 | — | |||||||||
S&P 500 BuyWrite Portfolio | 52,081,102 | 2,164,823 | |||||||||
Value Line Industry Rotation Portfolio | 46,070,232 | 60,307,750 | |||||||||
Value Line TimelinessTM Select Portfolio | 97,039,421 | 117,001,892 | |||||||||
Water Resources Portfolio | 23,671,145 | 194,514,015 | |||||||||
WilderHill Clean Energy Portfolio | 186,781,895 | 261,579,857 | |||||||||
WilderHill Progressive Energy Portfolio | 4,320,602 | 2,388,675 |
Gains and (losses) on in-kind transactions are generally not considered taxable gains/(losses) for Federal income tax purposes.
At April 30, 2010, the aggregate cost and the net unrealized appreciation (depreciation) of investments for tax purposes were as follows:
Cost | Net Unrealized Appreciation (Depreciation) | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | ||||||||||||||||
Aerospace & Defense Portfolio | $ | 160,517,429 | $ | (23,070,118 | ) | $ | 1,488,491 | $ | (24,558,609 | ) | |||||||||
CleantechTM Portfolio | 169,409,218 | (9,370,248 | ) | 15,154,578 | (24,524,826 | ) | |||||||||||||
DWA Technical LeadersTM Portfolio | 126,423,160 | 33,102,456 | 34,504,139 | (1,401,683 | ) | ||||||||||||||
Global Listed Private Equity Portfolio | 213,434,005 | (537,419 | ) | 11,367,723 | (11,905,142 | ) | |||||||||||||
Golden Dragon Halter USX China Portfolio | 494,922,468 | (39,467,920 | ) | 54,914,941 | (94,382,861 | ) | |||||||||||||
Lux Nanotech Portfolio | 65,616,544 | (10,220,715 | ) | 4,563,718 | (14,784,433 | ) | |||||||||||||
NASDAQ-100 BuyWrite Portfolio | 11,265,483 | — | — | — | |||||||||||||||
S&P 500 BuyWrite Portfolio | 170,405,693 | — | — | — | |||||||||||||||
Value Line Industry Rotation Portfolio | 17,244,896 | 2,080,132 | 2,393,872 | (313,740 | ) | ||||||||||||||
Value Line TimelinessTM Select Portfolio | 59,221,338 | 8,618,248 | 9,487,580 | (869,332 | ) |
90
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
Cost | Net Unrealized Appreciation (Depreciation) | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | ||||||||||||||||
Water Resources Portfolio | $ | 1,327,451,627 | $ | 7,650,863 | $ | 104,889,901 | $ | (97,239,038 | ) | ||||||||||
WilderHill Clean Energy Portfolio | 832,943,289 | (175,168,689 | ) | 58,126,206 | (233,294,895 | ) | |||||||||||||
WilderHill Progressive Energy Portfolio | 54,617,585 | 5,834,909 | 11,156,858 | (5,321,949 | ) |
Note 9. Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of investment activity, on April 30, 2010, amounts were reclassified between undistributed net investment income (loss), undistributed net realized gain (loss) and Shares of beneficial interest. These reclassifications had no effect on the net assets of each Fund. For the fiscal year ended April, 30, 2010, the reclassifications were as follow:
Undistributed Net Investment Income (Loss) | Undistributed Net Realized Gain (Loss) | Shares of Beneficial Interest | |||||||||||||
Aerospace & Defense Portfolio | $ | 44,617 | $ | 3,639,381 | $ | (3,683,998 | ) | ||||||||
CleantechTM Portfolio | 94,239 | (1,780,366 | ) | 1,686,127 | |||||||||||
DWA Technical LeadersTM Portfolio | 137,660 | (24,331,396 | ) | 24,193,736 | |||||||||||
Global Listed Private Equity Portfolio | (4,955,162 | ) | 12,697,973 | (7,742,811 | ) | ||||||||||
Golden Dragon Halter USX China Portfolio | 84,816 | (24,382,499 | ) | 24,297,683 | |||||||||||
Lux Nanotech Portfolio | 17,653 | 140,326 | (157,979 | ) | |||||||||||
NASDAQ-100 BuyWrite Portfolio | 564,505 | (449,378 | ) | (115,127 | ) | ||||||||||
S&P 500 BuyWrite Portfolio | 4,975 | — | (4,975 | ) | |||||||||||
Value Line Industry Rotation Portfolio | 10,906 | (8,741,312 | ) | 8,730,406 | |||||||||||
Value Line TimelinessTM Select Portfolio | 32,728 | (18,263,267 | ) | 18,230,539 | |||||||||||
Water Resources Portfolio | 468,057 | (29,301,615 | ) | 28,833,558 | |||||||||||
WilderHill Clean Energy Portfolio | 1,140,849 | (17,043,760 | ) | 15,902,911 | |||||||||||
WilderHill Progressive Energy Portfolio | (11,802 | ) | (853,993 | ) | 865,795 |
Note 10. Trustees' Fees
The Funds compensate each Trustee who is not an employee of the Adviser or its affiliates. With respect to S&P 500 BuyWrite Portfolio and NASDAQ-100 BuyWrite Portfolio, the Adviser, as result of the unitary management fee, pays for such compensation. The "Interested" Trustees of the Trust do not receive any Trustees' fees.
The Trust has adopted a deferred compensation plan (the "Plan"). Under the Plan, a Trustee who is not an "interested person" (as defined in the 1940 Act) (an "Independent Trustee") and has executed a Deferred Fee Agreement (a "Participating Trustee") may defer receipt of all or a portion of his compensation ("Deferral Fees"). Such Deferral Fees are deemed to be invested in selected PowerShares Funds. The Deferral Fees payable to the Participating Trustee are valued as of the date such Deferral Fees would have been paid to the Participating Trustee. The value increases with contributions or with increases in the value of the Shares selected, and the value decreases with distributions or with declines in the value of the Shares selected.
91
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
Note 11. Capital
Shares are created and redeemed by the Trust only in Creation Unit size aggregations of 50,000 Shares. Only Authorized Participants are permitted to purchase or redeem Creation Units from the Funds. Such transactions are generally permitted on an in-kind basis, with a balancing cash component to equate the transaction to the NAV per Share of each Fund of the Trust on the transaction date. Cash may be substituted equivalent to the value of certain securities generally when they are not available in sufficient quantity for delivery, not eligible for trading by the Authorized Participant or as a result of other market circumstances.
Note 12. Indemnifications
Under the Trust's organizational documents, its officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. Each Independent Trustee is also indemnified against certain liabilities arising out of the performance of his duties to the Trust pursuant to an Indemnification Agreement between the Independent Trustee and the Trust. Additionally, in the normal course of business, the Trust enters into contracts with service providers that contain general indemnification clauses. The Trust's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred. However, based on experience, the Trust believes the risk of loss to be remote.
Note 13. Subsequent Events
The Board of Trustees of the Trust approved a change to the name and the Underlying Index for the PowerShares Value Line Industry Rotation Portfolio (the "Fund"), effective June 30, 2010. The Fund's name will be changed to the PowerShares Morningstar StockInvestor Core Portfolio and the Fund will amend its current investment objective to seek investment results that correspond (before fees and expenses) generally to the price and yield performance of an index called the Morningstar StockInvestor Core Index. In addition, the Board of Trustees approved an amendment to the Expense Agreement to reduce the Expense Cap from 0.60% to 0.50%.
The Board of Trustees of the Trust approved a change to the name and the Underlying Index for the PowerShares Value Line TimelinessTM Select Portfolio (the "Fund"), effective June 30, 2010. The Fund's name will be changed to the PowerShares S&P 500 High Quality Portfolio and the Fund will amend its current investment objective to seek investment results that correspond (before fees and expenses) generally to the price and yield performance of an index called the S&P 500 High Quality Rankings Index. In addition, the Board of Trustees approved an amendment to the Expense Agreement to reduce the Expense Cap from 0.60% to 0.50%.
92
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of PowerShares Exchange-Traded Fund Trust:
In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of each of the portfolios indicated in Note 1 of the financial statements (each a portfolio of PowerShares Exchange-Traded Fund Trust, hereafter referred to as the "Trust") at April 30, 2010, and the results of each of their operations, the changes in each of their net assets, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Trust's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at April 30, 2010 by correspondence with the custodian and brokers, and the application of alternative auditing procedures where securities purchased had not been received, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
New York, New York
June 28, 2010
93
Tax Information
Form 1099-DIV, Form 1042-S and other year-end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisors.
The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state's requirement.
Each Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended April 30, 2010:
Federal Income Tax Information
Qualified dividend income* | Corporate dividends- received deduction* | ||||||||||
Aerospace & Defense Portfolio | 100 | % | 100 | % | |||||||
CleantechTM Portfolio | 100 | % | 100 | % | |||||||
DWA Technical LeadersTM Portfolio | 100 | % | 100 | % | |||||||
Global Listed Private Equity Portfolio | 87 | % | 65 | % | |||||||
Golden Dragon Halter USX China Portfolio | 100 | % | 0 | % | |||||||
Lux Nanotech Portfolio | 100 | % | 100 | % | |||||||
NASDAQ-100 BuyWrite Portfolio | 0 | % | 0 | % | |||||||
S&P 500 BuyWrite Portfolio | 0 | % | 0 | % | |||||||
Value Line Industry Rotation Portfolio | 100 | % | 100 | % | |||||||
Value Line TimelinessTM Select Portfolio | 100 | % | 100 | % | |||||||
Water Resources Portfolio | 100 | % | 100 | % | |||||||
WilderHill Clean Energy Portfolio | 0 | % | 0 | % | |||||||
WilderHill Progressive Energy Portfolio | 100 | % | 64 | % |
* The above percentages are based on ordinary income dividends paid to shareholders during the Fund's fiscal year.
94
Proxy Results
A Special Meeting of Shareholders was held on March 22, 2010 to elect seven individuals to the Board of Trustees of PowerShares Exchange-Traded Fund Trust.
The results of the voting of the above matter were as follows:
Trustees | Votes For | Withheld/ Abstentions* | |||||||||
Ronn R. Bagge | 426,624,761 | 8,241,402 | |||||||||
Todd J. Barre | 426,876,044 | 7,990,119 | |||||||||
H. Bruce Bond | 426,681,223 | 8,184,940 | |||||||||
Kevin M. Carome | 425,386,415 | 9,479,748 | |||||||||
Marc M. Kole | 426,529,715 | 8,336,448 | |||||||||
Philip M. Nussbaum | 426,531,618 | 8,334,545 | |||||||||
Donald H. Wilson | 426,691,769 | 8,174,394 |
* Includes Non-Votes.
95
Trustees and Officers
The Independent Trustees, the Trustees who are affiliated with the Adviser (the "Interested Trustees") and the executive officers of the Trust, their term of office and length of time served, their principal business occupations during at least the past five years, the number of portfolios in the Fund Complex overseen by each Trustee and the other directorships, if any, held by a Trustee, are shown below.
The Trustees and officers information is current as of April 30, 2010.
Name, Address and Age of Independent Trustees | Position(s) Held with Trust | Term of Office and Length of Time Served* | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Independent Trustees | Other Directorships Held by Independent Trustees | ||||||||||||||||||
Ronn R. Bagge (52) YQA Capital Management LLC 1755 S. Naperville Rd., Suite 100 Wheaton, IL 60187 | Trustee | Since 2003 | Founder and Principal, YQA Capital Management LLC (1998-Present); formerly Owner/CEO of Electronic Dynamic Balancing Co., Inc. (high-speed rotating equipment service provider) | 111 | None | ||||||||||||||||||
Todd J. Barre (52) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Trustee | Since 2010 | Vice President and Senior Investment Strategist (2001-2008), Director of Open Architecture and Trading (2007-2008), Head of Fundamental Research (2004-2007) and Vice President and Senior Fixed Income Strategist (1994-2001), BMO Financial Group/Harris Private Bank | 111 | None | ||||||||||||||||||
* This is the date the Trustee began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected.
** Fund Complex includes all open-end funds (including all of their portfolios) advised by the Adviser. At April 30, 2010, the Fund Complex consisted of the Trust's 62 portfolios and three other exchange-traded fund trusts with 49 portfolios advised by the Adviser.
96
Trustees and Officers (Continued)
Name, Address and Age of Independent Trustees | Position(s) Held with Trust | Term of Office and Length of Time Served* | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Independent Trustees | Other Directorships Held by Independent Trustees | ||||||||||||||||||
Marc M. Kole (49) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Trustee | Since 2006 | Chief Financial Officer, Hope Network (social services) (2008-Present); formerly Assistant Vice President and Controller, Priority Health (health insurance) (2005-2008); Senior Vice President of Finance, United Healthcare (2004-2005); Senior Vice President of Finance, Oxford Health Plans (2000-2004) | 111 | None | ||||||||||||||||||
Philip M. Nussbaum (48) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Trustee | Since 2003 | Chairman, Performance Trust Capital Partners (formerly Betzold, Berg, Nussbaum & Heitman, Inc.) (2004-Present); formerly Managing Director, Communication Institute (2002-2003); Executive Vice President of Finance, Betzold, Berg, Nussbaum & Heitman, Inc. (1994-1999) | 111 | None | ||||||||||||||||||
* This is the date the Trustee began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected.
** Fund Complex includes all open-end funds (including all of their portfolios) advised by the Adviser. At April 30, 2010, the Fund Complex consisted of the Trust's 62 portfolios and three other exchange-traded fund trusts with 49 portfolios advised by the Adviser.
97
Trustees and Officers (Continued)
Name, Address and Age of Independent Trustees | Position(s) Held with Trust | Term of Office and Length of Time Served* | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Independent Trustees | Other Directorships Held by Independent Trustees | ||||||||||||||||||
Donald H. Wilson (50) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Trustee | Since 2006 | Chairman and Chief Executive Officer, Stone Pillar Advisers, Ltd. (2010-Present); formerly, Chief Operating Officer, AMCORE Financial, Inc. (bank holding company) (2007-2009); Executive Vice President and Chief Financial Officer, AMCORE Financial, Inc. (2006-2007); Senior Vice President and Treasurer, Marshall & Ilsley Corp. (bank holding company) (1995-2006) | 111 | None | ||||||||||||||||||
* This is the date the Trustee began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected.
** Fund Complex includes all open-end funds (including all of their portfolios) advised by the Adviser. At April 30, 2010, the Fund Complex consisted of the Trust's 62 portfolios and three other exchange-traded fund trusts with 49 portfolios advised by the Adviser.
98
Trustees and Officers (Continued)
Name, Address and Age of Interested Trustees | Position(s) Held with Trust | Term of Office and Length of Time Served* | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Interested Trustee | Other Directorships Held by Interested Trustee | ||||||||||||||||||
H. Bruce Bond (46) Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Chairman of the Board and Trustee | Since 2003 | Chairman, Invesco Power-Shares Capital Management LLC (2009-Present); formerly, Managing Director, Invesco PowerShares Capital Management LLC (2002-2009); Manager, Nuveen Investments (1998-2002) | 111 | None | ||||||||||||||||||
Kevin M. Carome (53) Invesco Ltd. Two Peachtree Pointe 1555 Peachtree St., N.E., Suite 1800 Atlanta, GA 30309 | Trustee | Since 2010 | Senior Managing Director and General Counsel, Invesco Ltd. (2006-Present); formerly, Senior Vice President and General Counsel, Invesco Advisors, Inc. (2003-2005); Senior Vice President and General Counsel, Liberty Financial Companies, Inc. (2000-2001); General Counsel of certain investment management subsidiaries of Liberty Financial Companies, Inc. (1998-2000); Associate General Counsel, Liberty Financial Companies, Inc. (1993-1998); Associate, Ropes & Gray LLP | 111 | None | ||||||||||||||||||
* This is the date the Interested Trustee began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected.
** Fund Complex includes all open-end funds (including all of their portfolios) advised by the Adviser. At April 30, 2010, the Fund Complex consisted of the Trust's 62 portfolios and three other exchange-traded fund trusts with 49 portfolios advised by the Adviser.
99
Trustees and Officers (Continued)
Name, Address and Age of Executive Officer | Position(s) Held with Trust | Length of Time Served* | Principal Occupation(s) During Past 5 Years | ||||||||||||
Andrew Schlossberg (35) Invesco Management Group, Inc. 11 Greenway Plaza Suite 100 Houston, Texas 77046 | President | Since 2009 | Managing Director, U.S. head of business strategy and chief marketing officer for Invesco Ltd. in the United States (2008-Present); formerly, Mr. Schlossberg served in multiple roles within Invesco, including head of corporate development, as well as global leadership roles in strategy and product development in the company's North American Institutional and Retirement divisions (2002-2007) | ||||||||||||
Bruce T. Duncan (55) Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Treasurer and Secretary | Treasurer since 2006; Secretary since 2008 | Senior Vice President of Finance, Invesco PowerShares Capital Management LLC (2005-Present); formerly Private Practice Attorney (2000-2005); Vice President of Investor Relations, The ServiceMaster Company (1994-2000); Vice President of Taxes, The ServiceMaster Company (1990-2000) | ||||||||||||
Benjamin Fulton (48) Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Vice President | Since 2009 | Executive Vice President – Global Product Development, Invesco PowerShares Capital Management LLC (2005-Present); formerly, principal of Clermont Consulting, a consulting firm focused on the creation and development of retail investment products (2003-2005); President and a founding partner of Claymore Securities, a financial services firm in the Chicago land area (2001-2003); Managing Director of Structured Investments at Nuveen Investments (1998-2001) | ||||||||||||
Peter Hubbard (28) Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Vice President | Since 2009 | Vice President and Director of Portfolio Management – Invesco PowerShares Capital Management LLC (2008-Present); formerly, Research Analyst, Invesco PowerShares Capital Management LLC (2005-2007); Research Analyst and Trader, Ritchie Capital, a hedge fund operator (2003-2005) | ||||||||||||
* This is the period for which the Officers began serving the Trust. Each Officer serves a one year term, until his successor is elected.
100
Trustees and Officers (Continued)
Name, Address and Age of Executive Officer | Position(s) Held with Trust | Length of Time Served* | Principal Occupation(s) During Past 5 Years | ||||||||||||
David Warren (52) Invesco Trimark Ltd. 5140 Yonge Street Suite 900 Toronto, Ontario M2N 6X7 | Vice President | Since 2009 | Director, Executive Vice President and Chief Financial Officer, Invesco Trimark Ltd. and Chief Administrative Officer, North American Retail, Invesco Ltd (2007-Present); formerly, Director, Executive Vice President and Chief Financial Officer, Invesco Trimark Ltd. (2000-2006) | ||||||||||||
Todd Spillane (51) Invesco PowerShares Capital Management LLC 11 Greenway Plaza Suite 100 Houston, Texas 77046 | Chief Compliance Officer | Since 2010 | Senior Vice President, Invesco Management Group, Inc.; Chief Compliance Officer, INVESCO Private Capital Investments, Inc. (holding company), Invesco Private Capital, Inc. (registered investment adviser) and Invesco Senior Secured Management, Inc. (registered investment adviser); Chief Compliance Officer and Senior Vice President, Invesco Advisers Inc. (formerly Invesco Institutional, (N.A.), Inc. – registered investment adviser) and Vice President, Invesco Distributors, Inc. and Invesco Investment Services, Inc.; formerly: Chief Compliance Officer, Invesco Global Asset Management (N.A.), Inc. – registered investment adviser) and Invesco Advisers, Inc. (formerly Invesco Institutional (N.A.), Inc.) (registered investment adviser); Senior Vice President and Chief Compliance Officer, Invesco Advisors, Inc., Invesco Capital Management, Inc. and Invesco Private Asset Management, Inc.; Vice President, Invesco Capital Management, Inc. and Fu nd Management Company | ||||||||||||
Availability of Additional Information About the Trustees
The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request at 800.337.4246.
* This is the period for which the Officers began serving the Trust. Each Officer serves a one year term, until his successor is elected.
101
Board Considerations Regarding Continuation of Investment Advisory Agreement
At a meeting held on April 15, 2010, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust (the "Trust"), including the Independent Trustees, unanimously approved the continuation of the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the "Adviser") and the Trust for the following 57 series (each, a "Fund" and collectively, the "Funds"):
PowerShares Dynamic Market Portfolio
PowerShares Dynamic OTC Portfolio
PowerShares Golden Dragon Halter USX China Portfolio
PowerShares High Yield Equity Dividend AchieversTM Portfolio
PowerShares WilderHill Clean Energy Portfolio
PowerShares Dynamic Large Cap Growth Portfolio
PowerShares Dynamic Large Cap Value Portfolio
PowerShares Dynamic Mid Cap Growth Portfolio
PowerShares Dynamic Mid Cap Value Portfolio
PowerShares Dynamic Small Cap Growth Portfolio
PowerShares Dynamic Small Cap Value Portfolio
PowerShares Dynamic Biotechnology & Genome Portfolio
PowerShares Dynamic Food & Beverage Portfolio
PowerShares Dynamic Leisure and Entertainment Portfolio
PowerShares Dynamic Media Portfolio
PowerShares Dynamic Networking Portfolio
PowerShares Dynamic Pharmaceuticals Portfolio
PowerShares Dynamic Semiconductors Portfolio
PowerShares Dynamic Software Portfolio
PowerShares Zacks Micro Cap Portfolio
PowerShares Aerospace & Defense Portfolio
PowerShares Dynamic Telecommunications & Wireless Portfolio
PowerShares Value Line Timeliness Select Portfolio
PowerShares Dividend AchieversTM Portfolio
PowerShares International Dividend AchieversTM Portfolio
PowerShares Zacks Small Cap Portfolio
PowerShares Dynamic Building and Construction Portfolio
PowerShares Dynamic Energy Exploration and Production Portfolio
PowerShares Dynamic Insurance Portfolio
PowerShares Dynamic Oil and Gas Services Portfolio
PowerShares Dynamic Retail Portfolio
PowerShares Dynamic Utilities Portfolio
PowerShares Lux Nanotech Portfolio
PowerShares FTSE RAFI US 1000 Portfolio
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio
PowerShares Water Resources Portfolio
PowerShares Dynamic Energy Sector Portfolio
PowerShares Dynamic Financial Sector Portfolio
PowerShares Dynamic Healthcare Sector Portfolio
PowerShares Dynamic Industrials Sector Portfolio
PowerShares Dynamic Large Cap Portfolio
PowerShares Dynamic MagniQuant Portfolio
PowerShares Dynamic Mid Cap Portfolio
PowerShares Dynamic Small Cap Portfolio
PowerShares Dynamic Technology Sector Portfolio
PowerShares Buyback AchieversTM Portfolio
PowerShares Cleantech Portfolio
PowerShares Dynamic Banking Portfolio
PowerShares Dynamic Basic Materials Sector Portfolio
PowerShares Dynamic Consumer Discretionary Sector Portfolio
PowerShares Dynamic Consumer Staples Sector Portfolio
PowerShares Dynamic Healthcare Services Portfolio
PowerShares Financial Preferred Portfolio
PowerShares Global Listed Private Equity Portfolio
PowerShares DWA Technical Leaders Portfolio
PowerShares Value Line Industry Rotation Portfolio
PowerShares WilderHill Progressive Energy Portfolio
102
Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)
The Trustees reviewed information from the Adviser describing: (i) the nature, extent and quality of services provided, (ii) the investment performance of the Funds and the Adviser, (iii) the costs of services provided and estimated profits realized by the Adviser, (iv) the extent to which economies of scale are realized as the Funds grow, (v) whether fee levels reflect any possible economies of scale for the benefit of Fund shareholders, (vi) comparisons of services rendered and amounts paid to other registered investment companies and (vii) any benefits realized by the Adviser from its relationship with each Fund. Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the continuation of the Investment Advisory Agreement for each Fund. No single factor was determinative in the Board's analysis.
Nature, Extent and Quality of Services. In evaluating the nature, extent and quality of the Adviser's services, the Trustees reviewed information concerning the functions performed by the Adviser for the Funds, information describing the Adviser's current organization and projected staffing, including operations assistance provided by the Adviser's parent organization, Invesco Ltd., and the background and experience of the persons responsible for the day-to-day management of the Funds. The Trustees reviewed matters related to the Adviser's execution of portfolio transactions on behalf of the Funds. The Trustees also reviewed information on the performance of the Funds and the performance of their underlying indices through December 31, 2009. The Trustees also reviewed reports on the correlation and tracking error between the underlying index and each Fund's performance, including a report of Ibbotson Associates, a consultant to the Independent Trustees, that analyzed the reasons for tracking error for certain PowerShares funds, as well as the Adviser's analysis of the tracking error between each Fund and its underlying index. The Trustees noted that each Fund's correlation was within the targeted range set forth in the Trust's registration statement and that, for each Fund other than PowerShares Global Listed Private Equity Portfolio, the tracking error was within the targeted range set forth in the Trust's registration statement. The Trustees reviewed the reasons for PowerShares Global Listed Private Equity Portfolio's tracking error. The Trustees concluded that each Fund was correlated to its underlying index and that the tracking error for each Fund was within an acceptable range given that Fund's particular circumstances.
The Trustees also considered the services provided by the Adviser in its oversight of the Funds' administrator, custodian and transfer agent. They noted the significant amount of time and effort that had been devoted to this oversight function.
Based on their review, the Trustees concluded that the nature, extent and quality of services provided by the Adviser to the Funds under the Investment Advisory Agreement were appropriate and reasonable.
Fees, Expenses and Profitability. The Trustees reviewed and discussed the information provided by the Adviser on each Fund's expense ratio and advisory fee, as compared to information compiled by the Adviser from Lipper Inc. databases on the expense ratios of comparable exchange-traded funds ("ETFs"), open-end (non-ETF) index funds and open-end actively-managed funds. The Trustees noted that the annual advisory fee charged to each Fund is:
• 0.50% of the Fund's average net assets, for each Fund other than PowerShares High Yield Equity Dividend AchieversTM Portfolio, PowerShares Dividend AchieversTM Portfolio, PowerShares International Dividend AchieversTM Portfolio, PowerShares FTSE RAFI US 1000 Portfolio and PowerShares FTSE RAFI US 1500 Small-Mid Portfolio;
103
Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)
• 0.40% of the Fund's average net assets, for each of PowerShares High Yield Equity Dividend AchieversTM Portfolio, PowerShares Dividend AchieversTM Portfolio and PowerShares International Dividend AchieversTM Portfolio; and
• 0.29% of the Fund's average net assets, for each of PowerShares FTSE RAFI US 1000 Portfolio and PowerShares FTSE RAFI US 1500 Small-Mid Portfolio.
The Trustees also noted that the Adviser has agreed to waive a portion of its advisory fee and/or pay expenses (an "Expense Cap") to the extent necessary to prevent the annual operating expenses of each Fund from exceeding the percentage of that Fund's average daily net assets, at least until August 31, 2011, as set forth below:
• 0.60%, excluding interest expenses, brokerage commissions and other trading expenses, taxes and extraordinary expenses, for each of PowerShares Dynamic OTC Portfolio and PowerShares Dynamic Market Portfolio;
• 0.50%, excluding interest expenses, licensing fees, offering costs, brokerage commissions and other trading expenses, taxes and extraordinary expenses, for each of PowerShares High Yield Equity Dividend AchieversTM Portfolio, PowerShares Dividend AchieversTM Portfolio and PowerShares International Dividend AchieversTM Portfolio;
• 0.39%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes and extraordinary expenses, for each of PowerShares FTSE RAFI US 1000 Portfolio and PowerShares FTSE RAFI US 1500 Small-Mid Portfolio; and
• 0.60%, excluding interest expenses, licensing fees, offering costs, brokerage commissions and other trading expenses, taxes and extraordinary expenses, for each other Fund.
The Trustees noted that the Adviser represented that it does not provide investment advisory services to any clients other than the Funds and other ETFs overseen by the Board. The Trustees noted that each Fund's advisory fee was:
• higher than the median advisory fee of its ETF peer funds (except for the advisory fee of each of PowerShares Financial Preferred Portfolio, PowerShares Golden Dragon Halter USX China Portfolio and PowerShares International Dividend AchieversTM Portfolio, which was lower than the median advisory fee of its ETF peer funds); and
• higher than the median advisory fee of its open-end index peer funds (except for the advisory fee of each of PowerShares DWA Technical Leaders Portfolio, PowerShares Dynamic Banking Portfolio, PowerShares Dynamic Financial Sector Portfolio, PowerShares Dynamic Insurance Portfolio, PowerShares Dynamic Mid Cap Growth Portfolio, PowerShares Dynamic Mid Cap Value Portfolio, PowerShares Dynamic OTC Portfolio, PowerShares Financial Preferred Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Golden Dragon Halter USX China Portfolio, PowerShares International Dividend AchieversTM Portfolio, PowerShares Value Line Industry Rotation Portfolio and PowerShares Value Line Timeliness Select Portfolio, which was equal to or lower than the median advisory fee of its open-end index peer funds, and there was no comparable data for PowerShares Dynamic Basic Materials Sector Portfolio); but
104
Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)
• lower than the median advisory fee of its open-end actively-managed peer funds.
The Trustees determined that the advisory fees were reasonable, noting the complexity of the indices, which generally require more frequent rebalancing of the portfolios, the distinguishing factors of the Funds, and the higher administrative, operational and management oversight costs for the Adviser. With respect to the Funds' expense ratios, the Trustees noted that the net expense ratio for each Fund was:
• higher than the median expense ratio of its ETF peer funds (except for the net expense ratio of each of PowerShares Dynamic OTC Portfolio, PowerShares FTSE RAFI US 1000 Portfolio and PowerShares International Dividend AchieversTM Portfolio, which was less than the median expense ratio of its ETF peer funds); and
• higher than the median expense ratio of its open-end index peer funds (except for the net expense ratio of each of PowerShares Dynamic Banking Portfolio, PowerShares Dynamic Financial Sector Portfolio, PowerShares Dynamic Insurance Portfolio, PowerShares Dynamic Mid Cap Growth Portfolio, PowerShares Dynamic Mid Cap Value Portfolio, PowerShares Dynamic Oil and Gas Services Portfolio, PowerShares Dynamic Small Cap Growth Portfolio, PowerShares Dynamic Telecommunications & Wireless Portfolio, PowerShares Dynamic Utilities Portfolio, PowerShares Financial Preferred Portfolio and PowerShares Global Listed Private Equity Portfolio, which was lower than the median expense ratio of its open-end index peer funds, and there was no comparable data for PowerShares Dynamic Basic Materials Sector Portfolio); but
• lower than the median expense ratio of its open-end actively-managed peer funds.
The Trustees noted that a significant component of the non-advisory fee expenses was the license fees paid by the Funds.
The Board concluded that the advisory fee and expense ratio of each Fund (giving effect to the Fund's Expense Cap) were reasonable and appropriate in light of the services provided.
In conjunction with their review of fees, the Trustees also considered information provided by the Adviser on the revenues received by the Adviser under the Investment Advisory Agreement for each Fund, as well as the fees waived and expenses reimbursed by the Adviser for the Funds. The Trustees reviewed information provided by the Adviser on its profitability as well as any profits or losses realized by the Adviser from its relationship to each Fund. The Trustees concluded that the estimated profitability to the Adviser of the advisory services provided to any of the Funds was not unreasonable.
Economies of Scale and Whether Fee Levels Reflect These Economies of Scale. The Trustees reviewed the information provided by the Adviser as to the extent to which economies of scale are realized as each Fund grows and whether fee levels reflect economies of scale for the benefit of shareholders. The Trustees reviewed each Fund's asset size, expense ratio and expense limitation agreed to by the Adviser. The Trustees noted that, for Funds whose expenses are higher than their respective Expense Caps, any reduction in that Fund's expenses would be enjoyed by the Adviser, but that Fund shareholders benefit from the lower expense ratio as a result of the Fund's Expense Cap. The Trustees also noted that the Excess Expense Agreement with the Trust provides that the Adviser is entitled to be reimbursed by each Fund, other than PowerShares Dynamic Market Portf olio and PowerShares Dynamic OTC Portfolio, for fees waived or expenses absorbed pursuant to the Expense Cap for a period of three years from the date
105
Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)
the fee or expense was incurred, provided that no reimbursement would be made that would result in a Fund exceeding its Expense Cap. The Trustees considered whether the advisory fee rate for each Fund was reasonable in relation to the asset size of that Fund, and concluded that the flat advisory fee was reasonable and appropriate, noting the Fund expenses the Adviser has borne as a result of the Expense Cap.
The Trustees noted that the Adviser had not identified any further benefits that it derived from its relationship with the Funds and had noted that it does not have any soft-dollar arrangements.
Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the continuation of the Investment Advisory Agreement for each Fund. No single factor was determinative in the Board's analysis.
106
Board Considerations Regarding Continuation of Investment Advisory Agreement
At a meeting held on April 15, 2010, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust (the "Trust"), including the Independent Trustees, unanimously approved the continuation of the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the "Adviser") and the Trust for the following five series (each, a "Fund" and collectively, the "Funds"):
PowerShares FTSE NASDAQ Small Cap Portfolio
PowerShares NASDAQ Internet Portfolio
PowerShares NASDAQ-100 BuyWrite Portfolio
PowerShares NXQ Portfolio
PowerShares S&P 500 BuyWrite Portfolio
The Trustees reviewed information from the Adviser describing: (i) the nature, extent and quality of services provided, (ii) the investment performance of the Funds and the Adviser, (iii) the costs of services provided and estimated profits realized by the Adviser, (iv) the extent to which economies of scale are realized as the Funds grow, (v) whether fee levels reflect any possible economies of scale for the benefit of Fund shareholders, (vi) comparisons of services rendered and amounts paid to other registered investment companies and (vii) any benefits realized by the Adviser from its relationship with each Fund. Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the continuation of the Investment Advisory Agreement for each Fund. No single factor was determinative in the Board's analysis.
Nature, Extent and Quality of Services. In evaluating the nature, extent and quality of the Adviser's services, the Trustees reviewed information concerning the functions performed by the Adviser for the Funds, information describing the Adviser's current organization and projected staffing, including operations assistance provided by the Adviser's parent organization, Invesco Ltd., and the background and experience of the persons responsible for the day-to-day management of the Funds. The Trustees reviewed matters related to the Adviser's oversight of the execution of portfolio transactions on behalf of the Funds. The Trustees also reviewed information on the performance of the Funds and the performance of their underlying indices through December 31, 2009. The Trustees also reviewed reports on the correlation and tracking error between the underlyin g index and each Fund's performance, including a report of Ibbotson Associates, a consultant to the Independent Trustees, that analyzed the reasons for tracking error for certain PowerShares funds, as well as the Adviser's analysis of the tracking error between each Fund and its underlying index. The Trustees noted that, in each case, the correlation and tracking error for each Fund was within the targeted range set forth in the Trust's registration statement. The Trustees concluded that each Fund was correlated to its underlying index and that the tracking error for each Fund was within an acceptable range given that Fund's particular circumstances.
The Trustees also considered the services provided by the Adviser in its oversight of the Funds' administrator, custodian and transfer agent. They noted the significant amount of time and effort that had been devoted to this oversight function.
Based on their review, the Trustees concluded that the nature, extent and quality of services provided by the Adviser to the Funds under the Investment Advisory Agreement were appropriate and reasonable.
Fees, Expenses and Profitability. The Trustees reviewed and discussed the information provided by the Adviser on each Fund's total expense ratio and unitary advisory fee, as compared to information compiled by the Adviser from Lipper Inc. databases on the expense ratios of comparable exchange-traded funds ("ETFs"), open-end (non-ETF) index funds and open-end actively-managed funds. The Trustees noted that
107
Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)
the annual unitary advisory fee is 0.70% for each of PowerShares FTSE NASDAQ Small Cap Portfolio and PowerShares NXQ Portfolio, 0.60% for PowerShares NASDAQ Internet Portfolio and 0.75% for each of PowerShares NASDAQ-100 BuyWrite Portfolio and PowerShares S&P 500 BuyWrite Portfolio, and that the Adviser pays all other expenses of each Fund, except that each Fund pays its brokerage expenses, taxes, interest and extraordinary expenses.
The Trustees noted that the Adviser represented that it does not provide investment advisory services to any clients other than the Funds and other ETFs overseen by the Board. The Trustees noted that: the advisory fee for PowerShares FTSE NASDAQ Small Cap Portfolio was higher than the median expense ratios of its ETF peer funds and open-end index peer funds, but lower than the median expense ratio of its open-end actively-managed peer funds; the advisory fee for PowerShares NASDAQ Internet Portfolio was equal to or lower than the median expense ratio of its ETF peer funds and open-end actively-managed peer funds, but higher than its open-end index peer funds; the advisory fee for each of PowerShares NASDAQ-100 BuyWrite Portfolio and PowerShares S&P 500 BuyWrite Portfolio was equal to or lower than the median expense ratio for each of its peer group funds; and the advisory fee for PowerShares NXQ Portfolio was higher than the median expense ratio of its ETF peer funds, but lower than the median expense ratios of its open-end index peer funds and open-end actively-managed peer funds. The Trustees noted that each Fund's advisory fee was reasonable because of the complexity of the indices, which generally require more frequent rebalancing of the portfolios, the distinguishing factors of the Funds and the higher administrative, operational and management oversight costs for the Adviser. The Trustees also noted that a portion of each Fund's advisory fee was attributable to a license fee payable out of the unitary fee charged to that Fund. The Board concluded that the unitary advisory fee charged to each Fund was reasonable and appropriate in light of the services provided.
In conjunction with their review of the unitary advisory fee, the Trustees also considered information provided by the Adviser on the revenues received by the Adviser under the Investment Advisory Agreement. The Trustees reviewed information provided by the Adviser on its profitability as well as any profits or losses realized by the Adviser from its relationship to each Fund. The Trustees concluded that the estimated profitability to the Adviser of the advisory services provided to any of the Funds was not unreasonable.
Economies of Scale and Whether Fee Levels Reflect These Economies of Scale. The Trustees reviewed the information provided by the Adviser as to the extent to which economies of scale are realized as each Fund grows and whether fee levels reflect economies of scale for the benefit of shareholders. The Trustees reviewed each Fund's asset size and expense ratio. The Trustees noted that any reduction in fixed costs associated with the management of the Funds would be enjoyed by the Adviser, but a unitary fee provides certainty in expenses for the Funds. The Trustees considered whether the advisory fee rate for each Fund was reasonable in relation to the asset size of that Fund, and concluded that the flat advisory fee was reasonable and appropriate.
The Trustees noted that the Adviser had not identified any further benefits that it derived from its relationship with the Funds and had noted that it does not have any soft-dollar arrangements.
Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the continuation of the Investment Advisory Agreement for each Fund. No single factor was determinative in the Board's analysis.
108
PROXY VOTING POLICIES AND PROCEDURES
A description of the Funds' proxy voting policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available, without charge and upon request, by calling (800) 337-4246. This information is also available on the Securities and Exchange Commission's ("Commission") website at www.sec.gov.
Information regarding how the Funds voted proxies for portfolio securities, if applicable, during the most recent 12-month period ended June 30, is also available, without charge and upon request, by (i) calling (800) 337-4246; or (ii) accessing the Funds' Form N-PX on the Commission's website at www.sec.gov.
QUARTERLY PORTFOLIOS
The Funds file their complete schedules of portfolio holdings with the Commission for the first and third quarters of each fiscal year on Form N-Q. The Funds' Forms N-Q are available on the Commission's website at www.sec.gov. The Funds' Forms N-Q may also be reviewed and copied at the Commission's Public Reference Room in Washington, D.C.; information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330.
301 West Roosevelt Road
Wheaton, IL 60187
800.983.0903
www.invescopowershares.com
© 2009 Invesco PowerShares Capital Management LLC P-PS-AR-4
2010 Annual Report to Shareholders
April 30, 2010
PowerShares Buyback AchieversTM Portfolio
PowerShares Dividend AchieversTM Portfolio
PowerShares Financial Preferred Portfolio
PowerShares High Yield Equity Dividend
AchieversTM Portfolio
PowerShares International Dividend
AchieversTM Portfolio
Table of Contents
The Market Environment | 2 | ||||||
Manager's Analysis | 4 | ||||||
Frequency Distribution of Discounts & Premiums | 14 | ||||||
Fees and Expenses | 16 | ||||||
Dividend Income Portfolios | |||||||
Schedules of Investments | |||||||
PowerShares Buyback AchieversTM Portfolio | 18 | ||||||
PowerShares Dividend AchieversTM Portfolio | 20 | ||||||
PowerShares Financial Preferred Portfolio | 23 | ||||||
PowerShares High Yield Equity Dividend AchieversTM Portfolio | 24 | ||||||
PowerShares International Dividend AchieversTM Portfolio | 25 | ||||||
Statements of Assets and Liabilities | 28 | ||||||
Statements of Operations | 29 | ||||||
Statements of Changes in Net Assets | 30 | ||||||
Financial Highlights | 32 | ||||||
Notes to Financial Statements | 35 | ||||||
Report of Independent Registered Public Accounting Firm | 46 | ||||||
Tax Information | 47 | ||||||
Proxy Results | 48 | ||||||
Trustees and Officers | 49 | ||||||
Board Considerations Regarding Continuation of Investment Advisory Agreement | 55 | ||||||
The Market Environment
For the fiscal year ended April 30, 2010 (the "reporting period"), the U.S. markets recouped more than their previous year's losses. With the government's bank support programs firmly in place, the U.S. economy rebounded from its worst recession since the 1920s and U.S. equity markets rallied accordingly during the same period with the following performance: S&P 500® Index returned 38.82%, Dow Jones Industrial Index returned 38.61% and NASDAQ-100® Index returned 44.44%. As a result of the tremendous government assistance provided to U.S. banks, insurers, and automotive companies, consumer discretionary and financial stocks surged the most out of the ten S&P 500® sectors. Despite the sharp rise in U.S. equity prices, almost $23 billion in outflows occurred during this timeframe (based on Investment Company Institute statistics) as investors re-allocated their assets to income-g enerating products.
Interest rates remained at historically low levels, which supported bond prices during the reporting period. With the exception of U.S. Treasuries, fixed income markets enjoyed unprecedented gains in both total returns and inflows over the reporting period. Despite a newfound aversion to equity risk, investors put the most money to work in the riskiest bond sectors. As a result, higher beta bond sectors performed the best during the reporting period. For example, the Bank of America Merrill Lynch (BAML) U.S. High Yield Master II Index returned 44.20%, while the BAML U.S. Corporate, Government & Mortgage Index (prev. Domestic Master) returned 7.84% during the reporting period. Municipal bonds benefited from low supply and the establishment of the Build America Bond (BAB) program. As a result, the BAML Municipal Master Index returned 9.73% and the BAML BAB Index returned 9.60%. According to ICI statistics, domestic bond funds grew at a record pace during the reporting period, experiencing $353.5 billion in taxable inflows and $68.5 billion in municipal bond inflows.
2
This page intentionally left blank
Manager's Analysis
PowerShares Buyback AchieversTM Portfolio (ticker: PKW)
The PowerShares Buyback AchieversTM Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Share BuyBack AchieversTM Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 40.46%. Over this same year, the Index returned 41.37%, while the S&P 500® Index returned 38.82%. The Fund benefited from positive performance in consumer discretionary, industrials and information technology sectors. Fund performance was positive within each sector.
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Health Care | 27.2 | ||||||
Consumer Discretionary | 20.4 | ||||||
Industrials | 12.3 | ||||||
Information Technology | 10.2 | ||||||
Consumer Staples | 9.9 | ||||||
Financials | 9.3 | ||||||
Energy | 6.7 | ||||||
Materials | 2.0 | ||||||
Telecommunication Services | 1.2 | ||||||
Utilities | 0.7 | ||||||
Money Market Fund | 0.2 | ||||||
Other | (0.1 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Large-Cap Value | 37.3 | ||||||
Mid-Cap Growth | 17.3 | ||||||
Large-Cap Growth | 14.7 | ||||||
Small-Cap Value | 11.9 | ||||||
Small-Cap Growth | 10.7 | ||||||
Mid-Cap Value | 8.1 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
Sears Holdings Corp. | 5.1 | ||||||
DIRECTV | 5.1 | ||||||
Raytheon Co. | 5.1 | ||||||
Philip Morris International, Inc. | 5.1 | ||||||
Travelers Cos., Inc. (The) | 5.0 | ||||||
Zimmer Holdings, Inc. | 5.0 | ||||||
Exxon Mobil Corp. | 5.0 | ||||||
Aetna, Inc. | 4.9 | ||||||
WellPoint, Inc. | 4.7 | ||||||
Quest Diagnostics, Inc. | 4.7 | ||||||
Total | 49.7 |
4
Manager's Analysis (Continued)
PowerShares Buyback AchieversTM Portfolio (ticker: PKW)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2010 | ||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg Ann†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
Share BuyBack Achievers Index | 41.37 | % | -3.24 | % | -1.64 | % | -5.39 | % | |||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | -3.11 | % | -10.01 | % | |||||||||||
Russell 3000® Value Index | 43.10 | % | -7.36 | % | -5.34 | % | -16.71 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 40.46 | % | -3.95 | % | -2.37 | % | -7.72 | % | |||||||||||
Share Price Return | 40.43 | % | -4.04 | % | -2.40 | % | -7.83 | % |
Fund Inception: December 20, 2006
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.92%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.70% while the Fund's total gross operating expense ratio was 0.97%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P 500® Index and Russell 3000® Value Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 500 and 1,896 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
5
Manager's Analysis
PowerShares Dividend AchieversTM Portfolio (ticker: PFM)
The PowerShares Dividend AchieversTM Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Broad Dividend AchieversTM Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 31.76%. Over this same year, the Index returned 32.13%, while the S&P 500® Index returned 38.82%. The Fund benefited from positive performance in industrials, consumer staples and financials sectors. Fund performance was positive within each sector.
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Consumer Staples | 25.5 | ||||||
Energy | 14.0 | ||||||
Health Care | 13.2 | ||||||
Industrials | 12.6 | ||||||
Consumer Discretionary | 8.5 | ||||||
Financials | 6.7 | ||||||
Information Technology | 6.5 | ||||||
Telecommunication Services | 5.4 | ||||||
Materials | 3.8 | ||||||
Utilities | 3.8 | ||||||
Money Market Fund | 0.0 | ||||||
Other | 0.0 |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Large-Cap Growth | 43.7 | ||||||
Large-Cap Value | 40.4 | ||||||
Mid-Cap Value | 7.5 | ||||||
Mid-Cap Growth | 5.5 | ||||||
Small-Cap Value | 2.4 | ||||||
Small-Cap Growth | 0.5 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
Chevron Corp. | 5.3 | ||||||
Exxon Mobil Corp. | 5.0 | ||||||
AT&T, Inc. | 5.0 | ||||||
International Business Machines Corp. | 4.9 | ||||||
Johnson & Johnson | 4.9 | ||||||
Procter & Gamble Co. (The) | 4.8 | ||||||
Wal-Mart Stores, Inc. | 4.7 | ||||||
Coca-Cola Co. (The) | 4.2 | ||||||
PepsiCo, Inc. | 3.6 | ||||||
Abbott Laboratories | 2.7 | ||||||
Total | 45.1 |
6
Manager's Analysis (Continued)
PowerShares Dividend AchieversTM Portfolio (ticker: PFM)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2010 | ||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg Ann†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
Broad Dividend AchieversTM Index | 32.13 | % | -6.73 | % | -0.08 | % | -0.39 | % | |||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | 1.51 | % | 7.23 | % | |||||||||||
Russell 3000® Value Index | 43.10 | % | -7.36 | % | 0.94 | % | 4.44 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 31.76 | % | -6.89 | % | -0.40 | % | -1.84 | % | |||||||||||
Share Price Return | 31.76 | % | -6.93 | % | -0.40 | % | -1.84 | % |
Fund Inception: September 15, 2005
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.74%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.60% while the Fund's total gross operating expense ratio was 0.64%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P 500® Index and Russell 3000® Value Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 500 and 1,896 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
7
Manager's Analysis
PowerShares Financial Preferred Portfolio (ticker: PGF)
The PowerShares Financial Preferred Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Wells Fargo® Hybrid & Preferred Financial Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 62.16%. Over this same year the Index returned 67.92% while the S&P Preferred Index returned 61.56%. Because the Index does not comply with the tax diversification requirements to which the Fund must adhere, a sampling methodology was utilized to help the Fund achieve its investment objective. Part of the difference between the Fund and the Index performance, beyond regular Fund expenses, can be attributed to the Fund's sampling methodology.
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Banks | 60.0 | ||||||
Insurance | 28.9 | ||||||
Diversified Financial Services | 10.1 | ||||||
Other | 0.6 | ||||||
Money Market Fund | 0.4 |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Small-Cap Value | 56.5 | ||||||
Mid-Cap Value | 34.1 | ||||||
Large-Cap Value | 9.4 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
Barclays Bank PLC, 8.13% | 9.1 | ||||||
Bank of America Corp., 8.20% | 8.0 | ||||||
ING Groep NV, 8.50% | 5.5 | ||||||
Bank of America Corp., 8.63% | 5.2 | ||||||
Wells Fargo & Co., 8.00% | 5.0 | ||||||
HSBC Holdings PLC, 8.13% | 4.9 | ||||||
JPMorgan Chase & Co., 8.63% | 4.9 | ||||||
ING Groep NV, 7.38% | 4.2 | ||||||
Credit Suisse Guernsey, 7.90% | 4.1 | ||||||
MetLife, Inc., 6.50% | 3.9 | ||||||
Total | 54.8 |
8
Manager's Analysis (Continued)
PowerShares Financial Preferred Portfolio (ticker: PGF)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2010 | ||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg Ann†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
Wells Fargo® Hybrid & Preferred Financial Index | 67.92 | % | -2.13 | % | -1.46 | % | -4.88 | % | |||||||||||
S&P Preferred Index | 61.56 | % | -0.60 | % | 0.55 | % | 1.88 | % | |||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | -2.64 | % | -8.75 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 62.16 | % | -3.66 | % | -2.89 | % | -9.53 | % | |||||||||||
Share Price Return | 61.76 | % | -3.86 | % | -3.18 | % | -10.43 | % |
Fund Inception: December 1, 2006
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses during previous fiscal periods, absent which, performance during those fiscal periods would have been lower. The Adviser has contractually agreed to waive and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.68%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) and total gross operating expense ratio was determined to be 0.65%. NAV and Share Price returns assume that dividends and capital gain distributions ha ve been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P Preferred Index and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 44 and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
9
Manager's Analysis
PowerShares High Yield Equity Dividend AchieversTM Portfolio (ticker: PEY)
The PowerShares High Yield Equity Dividend AchieversTM Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Mergent Dividend AchieversTM 50 Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 44.59%. Over this same year, the Index returned 42.86%, while the Dow Jones U.S. Select Dividend Index returned 42.37%. The Fund benefited from positive performance in financials, utilities and industrials sectors. Fund performance was positive within each sector for the reporting period. The Fund outperformed the Index, due to the January rebalance at which time the Fund rebalanced over three days due to the thinly traded nature of some of its securities. This resulted in positive trading slippage of approximately 100 bps.
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Electric | 17.8 | ||||||
Banks | 14.6 | ||||||
Insurance | 13.5 | ||||||
Gas | 11.6 | ||||||
Telecommunications | 6.7 | ||||||
Agriculture | 4.7 | ||||||
Savings & Loans | 3.6 | ||||||
Commerical Services | 3.4 | ||||||
Chemicals | 3.3 | ||||||
Office/Business Equipment | 2.7 | ||||||
Food | 2.5 | ||||||
Pharmaceuticals | 2.4 | ||||||
Miscellaneous Manufacturing | 2.2 | ||||||
Water | 1.9 | ||||||
Household Products/Wares | 1.9 | ||||||
Distribution/Wholesale | 1.8 | ||||||
Packaging & Containers | 1.6 | ||||||
Environmental Control | 1.5 | ||||||
Computers | 1.4 | ||||||
Machinery-Diversified | 1.2 | ||||||
Other | (0.3 | ) |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
CenturyTel, Inc. | 3.7 | ||||||
Altria Group, Inc. | 3.1 | ||||||
AT&T, Inc. | 2.9 | ||||||
Progress Energy, Inc. | 2.9 | ||||||
Pitney Bowes, Inc. | 2.7 | ||||||
Integrys Energy Group, Inc. | 2.6 | ||||||
Old Republic International Corp. | 2.5 | ||||||
Vectren Corp. | 2.5 | ||||||
Mercury General Corp. | 2.5 | ||||||
Eli Lilly & Co. | 2.4 | ||||||
Total | 27.8 |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Small-Cap Value | 38.4 | ||||||
Mid-Cap Value | 29.4 | ||||||
Large-Cap Value | 21.7 | ||||||
Mid-Cap Growth | 8.9 | ||||||
Large-Cap Growth | 1.6 |
10
Manager's Analysis (Continued)
PowerShares High Yield Equity Dividend AchieversTM Portfolio (ticker: PEY)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2010 | ||||||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Year | 5 Year | Avg Ann†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Mergent Dividend AchieversTM 50 Index | 42.86 | % | -16.03 | % | -7.13 | % | -6.89 | % | -31.95 | % | |||||||||||||
Dow Jones U.S. Select Dividend Index | 42.37 | % | -8.92 | % | 0.17 | % | 0.00 | % | 0.01 | % | |||||||||||||
S&P Citigroup Large Cap Value Index | 41.93 | % | -8.10 | % | 1.85 | % | 1.46 | % | 8.18 | % | |||||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | 2.63 | % | 2.29 | % | 13.02 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | 44.59 | % | -14.63 | % | -6.00 | % | -5.84 | % | -27.69 | % | |||||||||||||
Share Price Return | 44.58 | % | -14.56 | % | -5.99 | % | -5.83 | % | -27.64 | % |
Fund Inception: December 9, 2004
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.62%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.60% while the Fund's total gross operating expense ratio was 0.65%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The Dow Jones U.S. Select Dividend Index, S&P Citigroup Large Cap Value Index, and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 100, 346, and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
11
Manager's Analysis
PowerShares International Dividend AchieversTM Portfolio (ticker: PID)
The PowerShares International Dividend AchieversTM Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the International Dividend AchieversTM Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 45.77%. Over this same year, the Index returned 45.14%, while the Dow Jones EPAC Select Dividend Index returned 52.85%. The Fund benefited from positive performance in financials, energy and industrials sectors. Fund performance was positive within each sector.
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Telecommunication Services | 19.0 | ||||||
Energy | 16.8 | ||||||
Financials | 13.0 | ||||||
Consumer Staples | 10.9 | ||||||
Consumer Discretionary | 10.5 | ||||||
Health Care | 9.8 | ||||||
Industrials | 7.8 | ||||||
Materials | 6.2 | ||||||
Utilities | 4.3 | ||||||
Information Technology | 1.6 | ||||||
Other | 0.1 |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Large-Cap Value | 46.6 | ||||||
Large-Cap Growth | 32.9 | ||||||
Mid-Cap Value | 10.3 | ||||||
Mid-Cap Growth | 8.6 | ||||||
Small-Cap Growth | 0.9 | ||||||
Small-Cap Value | 0.7 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
Grupo Aeroportuario del Sureste SAB de CV | 3.7 | ||||||
Telefonos de Mexico SAB de CV | 3.5 | ||||||
Banco Santander SA | 2.9 | ||||||
National Grid PLC | 2.5 | ||||||
Vodafone Group PLC | 2.3 | ||||||
Teekay Corp. | 2.3 | ||||||
Turkcell Iletisim Hizmetleri AS | 2.2 | ||||||
BP PLC | 2.2 | ||||||
Telus Corp. | 2.2 | ||||||
AstraZeneca PLC | 2.2 | ||||||
Total | 26.0 |
12
Manager's Analysis (Continued)
PowerShares International Dividend AchieversTM Portfolio (ticker: PID)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2010 | ||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg Ann†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
International Dividend AchieversTM Index | 45.14 | % | -8.03 | % | 1.82 | % | 8.67 | % | |||||||||||
Dow Jones EPAC Select Dividend Index | 52.85 | % | -9.20 | % | 5.05 | % | 25.87 | % | |||||||||||
MSCI EAFE® Value Index | 32.49 | % | -10.36 | % | 2.10 | % | 10.18 | % | |||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | 1.51 | % | 7.23 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 45.77 | % | -7.81 | % | 2.07 | % | 9.94 | % | |||||||||||
Share Price Return | 45.62 | % | -7.81 | % | 2.07 | % | 9.94 | % |
Fund Inception: September 15, 2005
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed during previous fiscal periods, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.57%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) and total gross operating expense ratio was determined to be 0.57%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in t he Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The Dow Jones EPAC Select Dividend Index, MSCI EAFE® Value Index, and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 100, 607, and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
13
Frequency Distribution of Discounts & Premiums
Since Inception through April 30, 2010
Closing Price Above NAV (bps) | |||||||||||||||||||||||||||||||||||||||
Ticker | Fund Name | Inception | Trading Days | 0-24 | 25-49 | 50-99 | 100-149 | 150-199 | 200+ | ||||||||||||||||||||||||||||||
PKW | PowerShares Buyback Achievers(TM) Portfolio | 12/20/06 | 845 | 323 | 35 | 8 | 1 | 2 | 1 | ||||||||||||||||||||||||||||||
PFM | PowerShares Dividend Achievers(TM) Portfolio | 09/15/05 | 1164 | 574 | 64 | 15 | 3 | 0 | 3 | ||||||||||||||||||||||||||||||
PGF | PowerShares Financial Preferred Portfolio | 12/01/06 | 858 | 309 | 180 | 88 | 29 | 24 | 68 | ||||||||||||||||||||||||||||||
PEY | PowerShares High Yield Equity Dividend Achievers(TM) Portfolio | 12/09/04 | 1357 | 471 | 47 | 7 | 4 | 0 | 1 | ||||||||||||||||||||||||||||||
PID | PowerShares International Dividend Achievers(TM) Portfolio | 09/15/05 | 1164 | 519 | 61 | 16 | 4 | 2 | 1 |
14
Closing Price Below NAV (bps) | |||||||||||||||||||||||||||
Ticker | -0-24 | -25-49 | -50-99 | -100-149 | -150-199 | -200+ | |||||||||||||||||||||
PKW | 462 | 11 | 2 | 0 | 0 | 0 | |||||||||||||||||||||
PFM | 493 | 9 | 2 | 1 | 0 | 0 | |||||||||||||||||||||
PGF | 129 | 14 | 10 | 3 | 2 | 2 | |||||||||||||||||||||
PEY | 726 | 89 | 9 | 1 | 1 | 1 | |||||||||||||||||||||
PID | 437 | 74 | 38 | 7 | 4 | 1 |
15
Fees and Expenses
As a shareholder of a Fund of the PowerShares Exchange-Traded Fund Trust, you incur advisory fees and other Fund expenses. The expense examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds.
The example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended April 30, 2010.
Actual Expenses
The first line in the following table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading "Expenses Paid During the Six-Month Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line in the following table provides information about hypothetical account values and hypothetical expenses based on each Fund's actual expense ratio and an assumed annualized rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs such as sales charges and brokerage commissions. Therefore the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning Account Value November 1, 2009 | Ending Account Value April 30, 2010 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period(1) | ||||||||||||||||
PowerShares Buyback AchieversTM Portfolio Actual | $ | 1,000.00 | $ | 1,182.20 | 0.70 | % | $ | 3.79 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.32 | 0.70 | % | $ | 3.51 | |||||||||||
PowerShares Dividend AchieversTM Portfolio Actual | $ | 1,000.00 | $ | 1,129.07 | 0.60 | % | $ | 3.17 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.82 | 0.60 | % | $ | 3.01 | |||||||||||
PowerShares Financial Preferred Portfolio Actual | $ | 1,000.00 | $ | 1,149.43 | 0.65 | % | $ | 3.46 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.57 | 0.65 | % | $ | 3.26 | |||||||||||
PowerShares High Yield Equity Dividend AchieversTM Portfolio Actual | $ | 1,000.00 | $ | 1,190.80 | 0.60 | % | $ | 3.26 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.82 | 0.60 | % | $ | 3.01 |
16
Fees and Expenses (Continued)
Beginning Account Value November 1, 2009 | Ending Account Value April 30, 2010 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period(1) | ||||||||||||||||
PowerShares International Dividend AchieversTM Portfolio Actual | $ | 1,000.00 | $ | 1,098.60 | 0.57 | % | $ | 2.97 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.97 | 0.57 | % | $ | 2.86 |
(1) Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six months ended April 30, 2010. Expenses are calculated by multiplying the Fund's annualized expense ratio by the average account value for the period; then multiplying the result by 181 and then dividing the result by 365. Expense ratios for the most recent half-year may differ from expense ratios based on the annualized data in the Financial Highlights.
17
Schedule of Investments
PowerShares Buyback AchieversTM Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—99.9% | |||||||||||
Consumer Discretionary—20.4% | |||||||||||
5,092 | American Greetings Corp., Class A | $ | 125,060 | ||||||||
7,911 | AutoZone, Inc.* | 1,463,614 | |||||||||
4,335 | Children's Place Retail Stores, Inc. (The)* | 198,630 | |||||||||
9,435 | Choice Hotels International, Inc. | 342,585 | |||||||||
53,744 | DIRECTV, Class A* | 1,947,145 | |||||||||
24,557 | Liberty Global, Inc., Class A* | 673,107 | |||||||||
5,825 | Mediacom Communications Corp., Class A* | 38,561 | |||||||||
6,711 | Netflix, Inc.* | 662,845 | |||||||||
2,085 | Perry Ellis International, Inc.* | 50,311 | |||||||||
1,446 | Pre-Paid Legal Services, Inc.* | 64,304 | |||||||||
4,726 | Radio One, Inc., Class D* | 23,819 | |||||||||
16,099 | Sears Holdings Corp.* | 1,947,174 | |||||||||
2,351 | Steiner Leisure Ltd.* | 110,191 | |||||||||
3,810 | Universal Technical Institute, Inc.* | 91,288 | |||||||||
7,738,634 | |||||||||||
Consumer Staples—9.9% | |||||||||||
8,740 | BJ's Wholesale Club, Inc.* | 334,567 | |||||||||
39,096 | Philip Morris International, Inc. | 1,918,832 | |||||||||
64,220 | Safeway, Inc. | 1,515,592 | |||||||||
3,768,991 | |||||||||||
Energy—6.7% | |||||||||||
15,388 | Cal Dive International, Inc.* | 100,945 | |||||||||
3,196 | CARBO Ceramics, Inc. | 234,107 | |||||||||
2,468 | Contango Oil & Gas Co.* | 135,493 | |||||||||
27,738 | Exxon Mobil Corp. | 1,882,024 | |||||||||
4,204 | Overseas Shipholding Group, Inc. | 210,452 | |||||||||
2,563,021 | |||||||||||
Financials—9.3% | |||||||||||
1,578 | American Physicians Capital, Inc. | 52,768 | |||||||||
7,068 | Ashford Hospitality Trust, Inc. REIT* | 65,732 | |||||||||
4,387 | eHealth, Inc.* | 60,146 | |||||||||
6,433 | Employers Holdings, Inc. | 106,016 | |||||||||
2,700 | First Mercury Financial Corp. | 35,397 | |||||||||
1,705 | FPIC Insurance Group, Inc.* | 46,410 | |||||||||
2,186 | Infinity Property & Casualty Corp. | 100,840 | |||||||||
12,816 | iStar Financial, Inc. REIT* | 85,995 | |||||||||
7,854 | LaBranche & Co., Inc.* | 38,799 | |||||||||
21,806 | MBIA, Inc.* | 208,902 | |||||||||
11,883 | Montpelier Re Holdings Ltd. (Bermuda) | 197,258 | |||||||||
2,555 | Safety Insurance Group, Inc. | 95,276 | |||||||||
37,543 | Travelers Cos., Inc. (The) | 1,904,932 | |||||||||
2,767 | United Financial Bancorp, Inc. | 38,683 | |||||||||
1,480 | White Mountains Insurance Group Ltd. | 508,528 | |||||||||
3,545,682 | |||||||||||
Health Care—27.2% | |||||||||||
62,925 | Aetna, Inc. | 1,859,434 | |||||||||
44,814 | AmerisourceBergen Corp. | 1,382,512 | |||||||||
1,584 | Assisted Living Concepts, Inc., Class A* | 55,598 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
2,038 | CorVel Corp.* | $ | 67,865 | ||||||||
8,857 | Gen-Probe, Inc.* | 419,733 | |||||||||
10,436 | Lincare Holdings, Inc.* | 487,257 | |||||||||
6,070 | Magellan Health Services, Inc.* | 256,215 | |||||||||
3,977 | Molina Healthcare, Inc.* | 116,009 | |||||||||
3,360 | Nighthawk Radiology Holdings, Inc.* | 12,432 | |||||||||
31,083 | Quest Diagnostics, Inc. | 1,776,704 | |||||||||
4,970 | Quidel Corp.* | 73,258 | |||||||||
1,950 | Synovis Life Technologies, Inc.* | 28,860 | |||||||||
3,307 | Triple-S Management Corp., Class B* | 60,187 | |||||||||
2,610 | Vital Images, Inc.* | 41,186 | |||||||||
33,407 | WellPoint, Inc.* | 1,797,297 | |||||||||
31,232 | Zimmer Holdings, Inc.* | 1,902,341 | |||||||||
10,336,888 | |||||||||||
Industrials—12.3% | |||||||||||
18,569 | Corrections Corp. of America* | 384,750 | |||||||||
6,657 | GATX Corp. | 217,284 | |||||||||
15,360 | Heartland Express, Inc. | 254,054 | |||||||||
5,883 | Hill International, Inc.* | 37,769 | |||||||||
6,615 | Innerworkings, Inc.* | 39,558 | |||||||||
32,942 | Raytheon Co. | 1,920,518 | |||||||||
4,970 | Robbins & Myers, Inc. | 128,773 | |||||||||
8,192 | SPX Corp. | 572,457 | |||||||||
2,506 | Standard Parking Corp.* | 42,326 | |||||||||
4,130 | TAL International Group, Inc. | 107,339 | |||||||||
8,423 | Thomas & Betts Corp.* | 353,261 | |||||||||
5,158 | Toro Co. (The) | 293,696 | |||||||||
10,351 | WABCO Holdings, Inc.* | 343,550 | |||||||||
4,695,335 | |||||||||||
Information Technology—10.2% | |||||||||||
7,290 | Actuate Corp.* | 41,261 | |||||||||
6,447 | Advanced Analogic Technologies, Inc.* | 24,499 | |||||||||
7,600 | Alliance Data Systems Corp.* | 570,456 | |||||||||
37,794 | Compuware Corp.* | 325,028 | |||||||||
6,631 | EchoStar Corp., Class A* | 127,382 | |||||||||
10,880 | Global Cash Access Holdings, Inc.* | 94,438 | |||||||||
17,671 | IAC/InterActiveCorp.* | 396,184 | |||||||||
3,321 | Manhattan Associates, Inc.* | 95,180 | |||||||||
3,943 | Marchex, Inc., Class B | 20,740 | |||||||||
9,270 | Micrel, Inc. | 108,181 | |||||||||
8,438 | Net 1 UEPS Technologies, Inc.* | 138,383 | |||||||||
12,468 | NeuStar, Inc., Class A* | 305,092 | |||||||||
4,601 | Perficient, Inc.* | 57,374 | |||||||||
18,586 | QLogic Corp.* | 360,011 | |||||||||
14,950 | Quest Software, Inc.* | 262,074 | |||||||||
5,255 | RightNow Technologies, Inc.* | 86,182 | |||||||||
2,465 | Rubicon Technology, Inc.* | 66,900 | |||||||||
11,919 | Sanmina-SCI Corp.* | 212,516 | |||||||||
26,461 | TIBCO Software, Inc.* | 301,655 | |||||||||
4,702 | Web.com Group, Inc.* | 22,711 |
See Notes to Financial Statements.
18
Schedule of Investments (Continued)
PowerShares Buyback AchieversTM Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
9,691 | Zebra Technologies Corp., Class A* | $ | 281,524 | ||||||||
3,897,771 | |||||||||||
Materials—2.0% | |||||||||||
8,923 | CF Industries Holdings, Inc. | 746,587 | |||||||||
Telecommunication Services—1.2% | |||||||||||
34,082 | Cincinnati Bell, Inc.* | 114,856 | |||||||||
8,111 | Telephone & Data Systems, Inc. | 281,127 | |||||||||
3,427 | USA Mobility, Inc. | 47,773 | |||||||||
443,756 | |||||||||||
Utilities—0.7% | |||||||||||
22,327 | Mirant Corp.* | 260,333 | |||||||||
Total Common Stocks and Other Equity Interests (Cost $34,623,227) | 37,996,998 | ||||||||||
Money Market Fund—0.2% | |||||||||||
60,174 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $60,174) | 60,174 | |||||||||
Total Investments (Cost $34,683,401)—100.1% | 38,057,172 | ||||||||||
Liabilities in excess of other assets—(0.1%) | (37,966 | ) | |||||||||
Net Assets—100.0% | $ | 38,019,206 |
Investment Abbreviations:
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
19
Schedule of Investments
PowerShares Dividend AchieversTM Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.0% | |||||||||||
Consumer Discretionary—8.5% | |||||||||||
6,106 | Family Dollar Stores, Inc. | $ | 241,553 | ||||||||
7,174 | Genuine Parts Co. | 307,047 | |||||||||
14,882 | H&R Block, Inc. | 272,489 | |||||||||
2,249 | John Wiley & Sons, Inc., Class A | 95,065 | |||||||||
6,702 | Leggett & Platt, Inc. | 164,400 | |||||||||
65,243 | Lowe's Cos., Inc. | 1,769,390 | |||||||||
1,372 | Matthews International Corp., Class A | 48,020 | |||||||||
48,608 | McDonald's Corp. | 3,431,239 | |||||||||
14,241 | McGraw-Hill Cos., Inc. (The) | 480,207 | |||||||||
1,636 | Meredith Corp. | 58,781 | |||||||||
1,487 | Polaris Industries, Inc. | 87,986 | |||||||||
5,531 | Ross Stores, Inc. | 309,736 | |||||||||
4,967 | Sherwin-Williams Co. (The) | 387,774 | |||||||||
7,222 | Stanley Black & Decker, Inc. | 448,847 | |||||||||
33,418 | Target Corp. | 1,900,482 | |||||||||
18,505 | TJX Cos., Inc. (The) | 857,522 | |||||||||
5,000 | VF Corp. | 432,100 | |||||||||
2,251 | Wolverine World Wide, Inc. | 68,903 | |||||||||
11,361,541 | |||||||||||
Consumer Staples—25.5% | |||||||||||
94,131 | Altria Group, Inc. | 1,994,636 | |||||||||
29,046 | Archer-Daniels-Midland Co. | 811,545 | |||||||||
19,636 | Avon Products, Inc. | 634,832 | |||||||||
4,081 | Brown-Forman Corp., Class B | 237,433 | |||||||||
2,301 | Casey's General Stores, Inc. | 88,888 | |||||||||
3,196 | Church & Dwight Co., Inc. | 221,323 | |||||||||
6,339 | Clorox Co. (The) | 410,133 | |||||||||
104,195 | Coca-Cola Co. (The) | 5,569,223 | |||||||||
22,249 | Colgate-Palmolive Co. | 1,871,141 | |||||||||
6,041 | Hormel Foods Corp. | 246,231 | |||||||||
5,385 | J.M. Smucker Co. (The) | 328,862 | |||||||||
18,810 | Kimberly-Clark Corp. | 1,152,301 | |||||||||
1,275 | Lancaster Colony Corp. | 70,087 | |||||||||
5,429 | McCormick & Co., Inc. | 214,825 | |||||||||
72,897 | PepsiCo, Inc. | 4,754,342 | |||||||||
103,694 | Procter & Gamble Co. (The) | 6,445,619 | |||||||||
9,583 | SUPERVALU, Inc. | 142,787 | |||||||||
26,784 | Sysco Corp. | 844,767 | |||||||||
1,619 | Tootsie Roll Industries, Inc. | 43,065 | |||||||||
1,107 | Universal Corp. | 57,320 | |||||||||
3,222 | Vector Group Ltd. | 52,809 | |||||||||
44,226 | Walgreen Co. | 1,554,544 | |||||||||
117,752 | Wal-Mart Stores, Inc. | 6,317,395 | |||||||||
34,064,108 | |||||||||||
Energy—14.0% | |||||||||||
2,337 | Buckeye Partners LP | 142,043 | |||||||||
86,535 | Chevron Corp. | 7,047,410 | |||||||||
8,554 | Energy Transfer Partners LP | 418,291 | |||||||||
28,610 | Enterprise Products Partners LP | 1,014,511 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
11,417 | EOG Resources, Inc. | $ | 1,280,074 | ||||||||
97,792 | Exxon Mobil Corp. | 6,635,187 | |||||||||
4,778 | Helmerich & Payne, Inc. | 194,082 | |||||||||
2,407 | Holly Corp. | 64,989 | |||||||||
13,477 | Kinder Morgan Energy Partners LP | 909,563 | |||||||||
8,647 | Murphy Oil Corp. | 520,117 | |||||||||
6,154 | Plains All American Pipeline LP | 356,870 | |||||||||
2,090 | TC Pipelines LP | 79,922 | |||||||||
18,663,059 | |||||||||||
Financials—6.7% | |||||||||||
21,206 | Aflac, Inc. | 1,080,658 | |||||||||
498 | Arrow Financial Corp. | 13,844 | |||||||||
4,683 | Arthur J. Gallagher & Co. | 123,022 | |||||||||
692 | BancFirst Corp. | 30,545 | |||||||||
3,772 | BancorpSouth, Inc. | 83,512 | |||||||||
2,172 | Bank of Hawaii Corp. | 114,855 | |||||||||
765 | Bank of The Ozarks, Inc. | 29,430 | |||||||||
6,424 | Brown & Brown, Inc. | 129,379 | |||||||||
14,850 | Chubb Corp. (The) | 785,120 | |||||||||
7,365 | Cincinnati Financial Corp. | 209,166 | |||||||||
3,765 | Commerce Bancshares, Inc. | 155,946 | |||||||||
1,493 | Community Bank System, Inc. | 36,832 | |||||||||
687 | Community Trust Bancorp, Inc. | 20,624 | |||||||||
2,658 | Corporate Office Properties Trust REIT | 107,516 | |||||||||
2,726 | Cullen/Frost Bankers, Inc. | 161,815 | |||||||||
5,355 | Eaton Vance Corp. | 188,710 | |||||||||
2,315 | Erie Indemnity Co., Class A | 107,208 | |||||||||
1,304 | Essex Property Trust, Inc. REIT | 137,989 | |||||||||
2,772 | Federal Realty Investment Trust REIT | 214,525 | |||||||||
4,666 | Federated Investors, Inc., Class B | 112,544 | |||||||||
942 | First Financial Bankshares, Inc. | 50,378 | |||||||||
593 | First Financial Corp. | 17,286 | |||||||||
10,316 | Franklin Resources, Inc. | 1,192,942 | |||||||||
1,119 | Getty Realty Corp. REIT | 27,718 | |||||||||
1,244 | Harleysville Group, Inc. | 39,833 | |||||||||
5,197 | HCC Insurance Holdings, Inc. | 141,306 | |||||||||
13,287 | HCP, Inc. REIT | 426,778 | |||||||||
1,589 | Home Properties, Inc. REIT | 78,957 | |||||||||
23,815 | Hudson City Bancorp, Inc. | 316,740 | |||||||||
4,297 | Investors Real Estate Trust REIT | 37,513 | |||||||||
728 | Lakeland Financial Corp. | 15,186 | |||||||||
2,476 | Mercury General Corp. | 111,395 | |||||||||
3,759 | National Retail Properties, Inc. REIT | 88,449 | |||||||||
10,879 | Old Republic International Corp. | 163,294 | |||||||||
16,939 | People's United Financial, Inc. | 263,063 | |||||||||
2,105 | Prosperity Bancshares, Inc. | 82,558 | |||||||||
4,719 | Realty Income Corp. REIT | 154,736 | |||||||||
837 | Republic Bancorp, Inc., Class A | 20,214 | |||||||||
954 | RLI Corp. | 55,332 | |||||||||
618 | S.Y. Bancorp, Inc. | 14,671 |
See Notes to Financial Statements.
20
Schedule of Investments (Continued)
PowerShares Dividend AchieversTM Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
8,580 | SEI Investments Co. | $ | 192,707 | ||||||||
712 | Southside Bancshares, Inc. | 15,365 | |||||||||
2,136 | StanCorp Financial Group, Inc. | 96,035 | |||||||||
11,733 | T. Rowe Price Group, Inc. | 674,765 | |||||||||
1,829 | Tanger Factory Outlet Centers, Inc. REIT | 76,086 | |||||||||
488 | Tompkins Financial Corp. | 19,823 | |||||||||
2,946 | Transatlantic Holdings, Inc. | 146,505 | |||||||||
1,830 | UMB Financial Corp. | 77,080 | |||||||||
1,964 | United Bankshares, Inc. | 57,035 | |||||||||
547 | Universal Health Realty Income Trust REIT | 18,171 | |||||||||
828 | Urstadt Biddle Properties, Inc., Class A REIT | 13,960 | |||||||||
1,773 | W.P. Carey & Co. LLC | 54,573 | |||||||||
2,706 | Washington REIT | 85,104 | |||||||||
726 | Washington Trust Bancorp, Inc. | 13,148 | |||||||||
322 | Wesco Financial Corp. | 122,054 | |||||||||
1,323 | Westamerica Bancorp | 77,753 | |||||||||
320 | WSFS Financial Corp. | 13,475 | |||||||||
8,895,228 | |||||||||||
Health Care—13.2% | |||||||||||
70,182 | Abbott Laboratories | 3,590,511 | |||||||||
3,161 | Beckman Coulter, Inc. | 197,246 | |||||||||
10,654 | Becton, Dickinson and Co. | 813,646 | |||||||||
4,299 | C.R. Bard, Inc. | 371,992 | |||||||||
16,339 | Cardinal Health, Inc. | 566,800 | |||||||||
6,608 | DENTSPLY International, Inc. | 242,117 | |||||||||
52,124 | Eli Lilly & Co. | 1,822,776 | |||||||||
100,624 | Johnson & Johnson | 6,470,123 | |||||||||
49,791 | Medtronic, Inc. | 2,175,369 | |||||||||
1,835 | Meridian Bioscience, Inc. | 36,682 | |||||||||
2,850 | Owens & Minor, Inc. | 89,633 | |||||||||
17,917 | Stryker Corp. | 1,029,152 | |||||||||
1,802 | Teleflex, Inc. | 110,499 | |||||||||
1,502 | West Pharmaceutical Services, Inc. | 62,859 | |||||||||
17,579,405 | |||||||||||
Industrials—12.6% | |||||||||||
32,180 | 3M Co. | 2,853,401 | |||||||||
1,373 | A.O. Smith Corp. | 70,888 | |||||||||
2,347 | ABM Industries, Inc. | 50,437 | |||||||||
677 | Badger Meter, Inc. | 28,001 | |||||||||
2,369 | Brady Corp., Class A | 81,399 | |||||||||
7,868 | C.H. Robinson Worldwide, Inc. | 474,440 | |||||||||
2,751 | Carlisle Cos., Inc. | 103,795 | |||||||||
28,395 | Caterpillar, Inc. | 1,933,416 | |||||||||
6,910 | Cintas Corp. | 188,297 | |||||||||
2,280 | CLARCOR, Inc. | 86,230 | |||||||||
3,491 | Donaldson Co., Inc. | 161,633 | |||||||||
8,442 | Dover Corp. | 440,841 | |||||||||
34,012 | Emerson Electric Co. | 1,776,447 | |||||||||
9,600 | Expeditors International of Washington, Inc. | 391,104 | |||||||||
6,664 | Fastenal Co. | 364,454 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
1,046 | Franklin Electric Co., Inc. | $ | 36,600 | ||||||||
17,380 | General Dynamics Corp. | 1,327,137 | |||||||||
755 | Gorman-Rupp Co. (The) | 21,057 | |||||||||
2,739 | Graco, Inc. | 94,989 | |||||||||
3,639 | Harsco Corp. | 112,663 | |||||||||
22,711 | Illinois Tool Works, Inc. | 1,160,532 | |||||||||
1,081 | McGrath Rentcorp | 28,095 | |||||||||
1,626 | Mine Safety Appliances Co. | 47,788 | |||||||||
376 | NACCO Industries, Inc., Class A | 32,689 | |||||||||
1,530 | Nordson Corp. | 109,885 | |||||||||
7,268 | Parker Hannifin Corp. | 502,800 | |||||||||
4,459 | Pentair, Inc. | 161,237 | |||||||||
9,380 | Pitney Bowes, Inc. | 238,252 | |||||||||
815 | Raven Industries, Inc. | 24,743 | |||||||||
4,235 | Roper Industries, Inc. | 258,420 | |||||||||
850 | Tennant Co. | 29,316 | |||||||||
42,327 | United Technologies Corp. | 3,172,409 | |||||||||
875 | Universal Forest Products, Inc. | 36,794 | |||||||||
3,285 | W.W. Grainger, Inc. | 363,124 | |||||||||
16,763,313 | |||||||||||
Information Technology—6.5% | |||||||||||
22,819 | Automatic Data Processing, Inc. | 989,432 | |||||||||
2,997 | Diebold, Inc. | 93,956 | |||||||||
2,108 | FactSet Research Systems, Inc. | 158,564 | |||||||||
50,500 | International Business Machines Corp. | 6,514,500 | |||||||||
3,820 | Jack Henry & Associates, Inc. | 97,486 | |||||||||
10,103 | Linear Technology Corp. | 303,696 | |||||||||
16,337 | Paychex, Inc. | 499,912 | |||||||||
8,657,546 | |||||||||||
Materials—3.8% | |||||||||||
9,599 | Air Products & Chemicals, Inc. | 737,011 | |||||||||
4,128 | Albemarle Corp. | 188,484 | |||||||||
3,065 | AptarGroup, Inc. | 131,918 | |||||||||
4,928 | Bemis Co., Inc. | 149,860 | |||||||||
10,674 | Ecolab, Inc. | 521,318 | |||||||||
2,212 | H.B. Fuller Co. | 51,871 | |||||||||
2,049 | Martin Marietta Materials, Inc. | 196,458 | |||||||||
14,243 | Nucor Corp. | 645,493 | |||||||||
7,518 | PPG Industries, Inc. | 529,042 | |||||||||
13,840 | Praxair, Inc. | 1,159,377 | |||||||||
5,860 | RPM International, Inc. | 129,389 | |||||||||
5,487 | Sigma-Aldrich Corp. | 325,379 | |||||||||
4,532 | Sonoco Products Co. | 150,145 | |||||||||
450 | Stepan Co. | 34,088 | |||||||||
4,487 | Valspar Corp. (The) | 140,533 | |||||||||
5,090,366 | |||||||||||
Telecommunication Services—5.4% | |||||||||||
253,898 | AT&T, Inc. | 6,616,582 | |||||||||
691 | Atlantic Tele-Network, Inc. | 38,129 |
See Notes to Financial Statements.
21
Schedule of Investments (Continued)
PowerShares Dividend AchieversTM Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
13,550 | CenturyTel, Inc. | $ | 462,191 | ||||||||
1,071 | Shenandoah Telecommunications Co. | 19,021 | |||||||||
2,545 | Telephone & Data Systems, Inc. | 88,210 | |||||||||
7,224,133 | |||||||||||
Utilities—3.8% | |||||||||||
839 | American States Water Co. | 31,311 | |||||||||
6,190 | Aqua America, Inc. | 113,463 | |||||||||
4,206 | Atmos Energy Corp. | 124,413 | |||||||||
1,771 | Black Hills Corp. | 58,248 | |||||||||
940 | California Water Service Group | 36,406 | |||||||||
12,736 | Consolidated Edison, Inc. | 575,667 | |||||||||
3,248 | Energen Corp. | 158,730 | |||||||||
18,736 | FPL Group, Inc. | 975,209 | |||||||||
3,459 | Integrys Energy Group, Inc. | 171,601 | |||||||||
8,500 | MDU Resources Group, Inc. | 180,200 | |||||||||
1,045 | MGE Energy, Inc. | 38,414 | |||||||||
613 | Middlesex Water Co. | 11,071 | |||||||||
3,666 | National Fuel Gas Co. | 190,705 | |||||||||
1,872 | New Jersey Resources Corp. | 70,631 | |||||||||
7,954 | Northeast Utilities | 221,042 | |||||||||
1,201 | Northwest Natural Gas Co. | 56,915 | |||||||||
4,828 | NSTAR | 176,705 | |||||||||
3,243 | Piedmont Natural Gas Co., Inc. | 89,183 | |||||||||
17,083 | PPL Corp. | 422,975 | |||||||||
12,866 | Progress Energy, Inc. | 513,611 | |||||||||
7,911 | Questar Corp. | 379,332 | |||||||||
837 | SJW Corp. | 23,001 | |||||||||
1,348 | South Jersey Industries, Inc. | 60,808 | |||||||||
1,595 | Suburban Propane Partners LP | 76,720 | |||||||||
4,921 | UGI Corp. | 135,278 | |||||||||
3,670 | Vectren Corp. | 91,787 | |||||||||
2,274 | WGL Holdings, Inc. | 81,273 | |||||||||
5,064,699 | |||||||||||
Total Common Stocks and Other Equity Interests (Cost $119,678,305) | 133,363,398 | ||||||||||
Money Market Fund—0.0% | |||||||||||
9,674 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $9,674) | 9,674 | |||||||||
Total Investments (Cost $119,687,979)—100.0% | 133,373,072 | ||||||||||
Other assets less liabilities—0.0% | 7,198 | ||||||||||
Net Assets—100.0% | $ | 133,380,270 |
Investment Abbreviations:
REIT—Real Estate Investment Trust
See Notes to Financial Statements.
22
Schedule of Investments
PowerShares Financial Preferred Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Preferred Stocks—99.0% | |||||||||||
Banks—60.0% | |||||||||||
1,925,626 | Bank of America Corp., 6.20%, Series D(~) | $ | 38,916,902 | ||||||||
2,196,397 | Bank of America Corp., 7.25%, Series J(~) | 51,966,753 | |||||||||
5,384,639 | Bank of America Corp., 8.20% | 137,415,987 | |||||||||
3,401,880 | Bank of America Corp., 8.63%, Series MER | 89,571,500 | |||||||||
773,246 | Barclays Bank PLC, 6.63%, Series 2 (United Kingdom) | 16,887,693 | |||||||||
818,561 | Barclays Bank PLC, 7.75%, Series 4 (United Kingdom) | 20,079,301 | |||||||||
6,218,017 | Barclays Bank PLC, 8.13%, Series 5 (United Kingdom)(~) | 156,445,308 | |||||||||
1,552,050 | Goldman Sachs Group, Inc. (The), 6.20%, Series B | 36,969,831 | |||||||||
3,159,244 | HSBC Holdings PLC, 8.13% (United Kingdom) | 84,035,890 | |||||||||
1,165,232 | HSBC USA, Inc., 6.50%, Series H(~) | 27,895,654 | |||||||||
2,990,983 | JPMorgan Chase & Co., 8.63%, Series J | 83,149,327 | |||||||||
1,261,325 | National Bank of Greece SA, 9.00% (Greece)(~) | 23,763,363 | |||||||||
1,400,453 | Royal Bank of Scotland Group PLC, 5.75%, Series L (United Kingdom) | 22,295,212 | |||||||||
560,139 | Royal Bank of Scotland Group PLC, 6.35%, Series N (United Kingdom) | 7,433,045 | |||||||||
472,823 | Royal Bank of Scotland Group PLC, 6.40%, Series M (United Kingdom) | 6,307,459 | |||||||||
820,590 | Royal Bank of Scotland Group PLC, 6.60%, Series S (United Kingdom) | 11,176,436 | |||||||||
533,940 | Royal Bank of Scotland Group PLC, 6.75%, Series Q (United Kingdom) | 7,485,839 | |||||||||
2,309,623 | Royal Bank of Scotland Group PLC, 7.25%, Series T (United Kingdom) | 34,182,420 | |||||||||
2,025,900 | Santander Finance SA Unipersonal, 10.50%, Series 10 (Spain)(~) | 55,043,703 | |||||||||
1,203,241 | U.S. Bancorp, 7.88%, Series D(~) | 32,427,345 | |||||||||
3,107,852 | Wells Fargo & Co., 8.00%, Series J | 85,155,145 | |||||||||
1,028,604,113 | |||||||||||
Diversified Financial Services—10.1% | |||||||||||
2,750,982 | Credit Suisse Guernsey, 7.90% (Switzerland) | 70,975,335 | |||||||||
199,884 | Deutsche Bank Capital Funding Trust IX, 6.63% | 4,587,338 | |||||||||
1,007,948 | Deutsche Bank Contingent Capital Trust III, 7.60% | 25,027,349 | |||||||||
431,749 | Deutsche Bank Contingent Capital Trust V, 8.05% | 11,044,139 | |||||||||
1,430,795 | HSBC Finance Corp., 6.36%(~) | 32,049,808 |
Number of Shares | Value | ||||||||||
Preferred Stocks (Continued) | |||||||||||
1,145,906 | Repsol International Capital Ltd., 7.45%, Series A | $ | 29,014,340 | ||||||||
172,698,309 | |||||||||||
Insurance—28.9% | |||||||||||
1,173,963 | Aegon NV, 6.38% (Netherlands) | 22,692,705 | |||||||||
506,077 | Aegon NV, 6.50% (Netherlands) | 9,757,164 | |||||||||
505,240 | Aegon NV, 6.88% (Netherlands) | 10,296,791 | |||||||||
1,953,626 | Aegon NV, 7.25% (Netherlands) | 42,276,467 | |||||||||
629,376 | Axis Capital Holdings Ltd., 7.25%, Series A(~) | 15,350,481 | |||||||||
1,862,548 | ING Groep NV, 6.13% (Netherlands)(~) | 32,799,470 | |||||||||
2,769,826 | ING Groep NV, 6.38% (Netherlands)(~) | 49,662,980 | |||||||||
3,476,222 | ING Groep NV, 7.38% (Netherlands)(~) | 71,436,362 | |||||||||
3,988,251 | ING Groep NV, 8.50% (Netherlands) | 93,524,486 | |||||||||
2,738,709 | MetLife, Inc., 6.50%, Series B | 66,358,919 | |||||||||
732,715 | PartnerRe Ltd., 6.75%, Series C(~) | 18,134,696 | |||||||||
395,781 | Principal Financial Group, Inc., 6.52%, Series B | 9,186,077 | |||||||||
733,460 | Prudential PLC, 6.50% (United Kingdom)(~) | 16,964,930 | |||||||||
596,931 | Prudential PLC, 6.75% (United Kingdom)(~) | 14,380,068 | |||||||||
511,039 | RenaissanceRe Holdings Ltd., 6.08%, Series C(~) | 10,379,202 | |||||||||
604,252 | RenaissanceRe Holdings Ltd., 6.60%, Series D(~) | 13,323,757 | |||||||||
496,524,555 | |||||||||||
Total Preferred Stocks (Cost $1,420,170,014) | 1,697,826,977 | ||||||||||
Money Market Fund—0.4% | |||||||||||
6,758,620 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $6,758,620) | 6,758,620 | |||||||||
Total Investments (Cost $1,426,928,634)—99.4% | 1,704,585,597 | ||||||||||
Other assets less liabilities—0.6% | 10,238,769 | ||||||||||
Net Assets—100.0% | $ | 1,714,824,366 |
Notes to Schedule of Investments:
(~) Affiliated Investment. See Note 4.
The Fund has holdings greater than 10% of net assets in the following countries:
United Kingdom | 23.2 | % | |||||
Netherlands | 19.4 |
See Notes to Financial Statements.
23
Schedule of Investments
PowerShares High Yield Equity Dividend AchieversTM Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks—100.3% | |||||||||||
Agriculture—4.7% | |||||||||||
187,002 | Altria Group, Inc. | $ | 3,962,573 | ||||||||
38,831 | Universal Corp. | 2,010,669 | |||||||||
5,973,242 | |||||||||||
Banks—14.6% | |||||||||||
78,061 | Arrow Financial Corp. | 2,170,096 | |||||||||
111,348 | BancorpSouth, Inc. | 2,465,245 | |||||||||
44,389 | Bank of Hawaii Corp. | 2,347,290 | |||||||||
89,868 | Community Bank System, Inc. | 2,217,043 | |||||||||
83,793 | Community Trust Bancorp, Inc. | 2,515,466 | |||||||||
88,755 | Lakeland Financial Corp. | 1,851,429 | |||||||||
89,882 | United Bankshares, Inc. | 2,610,173 | |||||||||
133,615 | Washington Trust Bancorp, Inc. | 2,419,768 | |||||||||
18,596,510 | |||||||||||
Chemicals—3.3% | |||||||||||
27,464 | PPG Industries, Inc. | 1,932,642 | |||||||||
100,463 | RPM International, Inc. | 2,218,223 | |||||||||
4,150,865 | |||||||||||
Commercial Services—3.4% | |||||||||||
80,048 | McGrath Rentcorp | 2,080,447 | |||||||||
74,055 | Paychex, Inc. | 2,266,083 | |||||||||
4,346,530 | |||||||||||
Computers—1.4% | |||||||||||
57,080 | Diebold, Inc. | 1,789,458 | |||||||||
Distribution/Wholesale—1.8% | |||||||||||
52,827 | Genuine Parts Co. | 2,260,996 | |||||||||
Electric—17.8% | |||||||||||
83,449 | Black Hills Corp. | 2,744,638 | |||||||||
68,702 | Consolidated Edison, Inc. | 3,105,330 | |||||||||
66,928 | Integrys Energy Group, Inc. | 3,320,298 | |||||||||
65,418 | MGE Energy, Inc. | 2,404,766 | |||||||||
78,612 | Northeast Utilities | 2,184,627 | |||||||||
70,139 | NSTAR | 2,567,087 | |||||||||
104,466 | PPL Corp. | 2,586,578 | |||||||||
93,168 | Progress Energy, Inc. | 3,719,267 | |||||||||
22,632,591 | |||||||||||
Environmental Control—1.5% | |||||||||||
65,622 | Mine Safety Appliances Co. | 1,928,631 | |||||||||
Food—2.5% | |||||||||||
79,982 | SUPERVALU, Inc. | 1,191,732 | |||||||||
63,466 | Sysco Corp. | 2,001,717 | |||||||||
3,193,449 | |||||||||||
Gas—11.6% | |||||||||||
91,285 | Atmos Energy Corp. | 2,700,210 | |||||||||
56,156 | New Jersey Resources Corp. | 2,118,766 | |||||||||
42,538 | Northwest Natural Gas Co. | 2,015,876 |
Number of Shares | Value | ||||||||||
Common Stocks (Continued) | |||||||||||
83,790 | Piedmont Natural Gas Co., Inc. | $ | 2,304,225 | ||||||||
127,047 | Vectren Corp. | 3,177,446 | |||||||||
68,526 | WGL Holdings, Inc. | 2,449,119 | |||||||||
14,765,642 | |||||||||||
Household Products/Wares—1.9% | |||||||||||
39,649 | Kimberly-Clark Corp. | 2,428,898 | |||||||||
Insurance—13.5% | |||||||||||
114,726 | Arthur J. Gallagher & Co. | 3,013,852 | |||||||||
108,489 | Cincinnati Financial Corp. | 3,081,088 | |||||||||
56,880 | Erie Indemnity Co., Class A | 2,634,113 | |||||||||
67,581 | Harleysville Group, Inc. | 2,163,944 | |||||||||
69,459 | Mercury General Corp. | 3,124,960 | |||||||||
214,728 | Old Republic International Corp. | 3,223,067 | |||||||||
17,241,024 | |||||||||||
Machinery-Diversified—1.2% | |||||||||||
18,014 | NACCO Industries, Inc., Class A | 1,566,137 | |||||||||
Miscellaneous Manufacturing—2.2% | |||||||||||
115,896 | Leggett & Platt, Inc. | 2,842,929 | |||||||||
Office/Business Equipment—2.7% | |||||||||||
133,714 | Pitney Bowes, Inc. | 3,396,336 | |||||||||
Packaging & Containers—1.6% | |||||||||||
60,880 | Sonoco Products Co. | 2,016,954 | |||||||||
Pharmaceuticals—2.4% | |||||||||||
88,974 | Eli Lilly & Co. | 3,111,421 | |||||||||
Savings & Loans—3.6% | |||||||||||
182,690 | Hudson City Bancorp, Inc. | 2,429,777 | |||||||||
143,547 | People's United Financial, Inc. | 2,229,285 | |||||||||
4,659,062 | |||||||||||
Telecommunications—6.7% | |||||||||||
143,653 | AT&T, Inc. | 3,743,597 | |||||||||
139,266 | CenturyTel, Inc. | 4,750,363 | |||||||||
8,493,960 | |||||||||||
Water—1.9% | |||||||||||
135,735 | Middlesex Water Co. | 2,451,374 | |||||||||
Total Investments (Cost $113,412,985)—100.3% | 127,846,009 | ||||||||||
Liabilities in excess of other assets—(0.3%) | (421,937 | ) | |||||||||
Net Assets—100.0% | $ | 127,424,072 |
See Notes to Financial Statements.
24
Schedule of Investments
PowerShares International Dividend AchieversTM Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—99.9% | |||||||||||
Australia—0.8% | |||||||||||
48,661 | BHP Billiton Ltd. ADR | $ | 3,542,034 | ||||||||
Bahamas—2.3% | |||||||||||
390,915 | Teekay Corp. | 9,792,421 | |||||||||
Belgium—0.8% | |||||||||||
42,758 | Delhaize Group SA ADR | 3,539,080 | |||||||||
Bermuda—2.6% | |||||||||||
153,990 | Axis Capital Holdings Ltd. | 4,799,868 | |||||||||
137,197 | Max Capital Group Ltd. | 3,059,493 | |||||||||
56,449 | RenaissanceRe Holdings Ltd. | 3,158,322 | |||||||||
11,017,683 | |||||||||||
Brazil—2.8% | |||||||||||
91,345 | Cia de Bebidas DAS Americas ADR | 7,704,951 | |||||||||
100,913 | Petroleo Brasileiro SA ADR | 4,281,738 | |||||||||
11,986,689 | |||||||||||
Canada—19.8% | |||||||||||
138,423 | Bank of Nova Scotia | 7,047,115 | |||||||||
152,106 | Brookfield Asset Management, Inc., Class A | 3,854,366 | |||||||||
73,095 | Cameco Corp. | 1,798,868 | |||||||||
52,242 | Canadian National Railway Co. | 3,123,549 | |||||||||
19,125 | Canadian Natural Resources Ltd. | 1,471,478 | |||||||||
52,654 | Canadian Pacific Railway Ltd. | 3,099,214 | |||||||||
130,101 | Enbridge, Inc. | 6,285,179 | |||||||||
43,243 | Imperial Oil Ltd. | 1,816,206 | |||||||||
199,920 | Methanex Corp. | 4,634,146 | |||||||||
151,847 | Ritchie Bros. Auctioneers, Inc. | 3,553,220 | |||||||||
191,843 | Rogers Communications, Inc., Class B | 6,831,529 | |||||||||
417,219 | Shaw Communications, Inc., Class B | 7,847,889 | |||||||||
65,746 | Suncor Energy, Inc. | 2,246,541 | |||||||||
140,031 | Talisman Energy, Inc. | 2,386,128 | |||||||||
264,303 | Telus Corp. | 9,332,539 | |||||||||
162,988 | Thomson Reuters Corp. | 5,848,009 | |||||||||
78,699 | Toronto-Dominion Bank (The) | 5,859,928 | |||||||||
216,340 | TransCanada Corp. | 7,615,168 | |||||||||
84,651,072 | |||||||||||
Cayman Islands—0.9% | |||||||||||
273,740 | Consolidated Water Co. Ltd. | 3,873,421 | |||||||||
Chile—2.0% | |||||||||||
83,408 | Empresa Nacional de Electricidad SA ADR | 3,874,302 | |||||||||
133,774 | Sociedad Quimica y Minera de Chile SA ADR | 4,815,864 | |||||||||
8,690,166 | |||||||||||
Denmark—0.6% | |||||||||||
28,628 | Novo Nordisk A/S ADR | 2,350,359 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
France—3.2% | |||||||||||
154,306 | Sanofi-Aventis SA ADR | $ | 5,263,378 | ||||||||
156,504 | Total SA ADR | 8,510,687 | |||||||||
13,774,065 | |||||||||||
Germany—0.4% | |||||||||||
32,494 | Fresenius Medical Care AG & Co. KGaA ADR | 1,752,726 | |||||||||
Greece—0.6% | |||||||||||
92,885 | Coca-Cola Hellenic Bottling Co. SA ADR | 2,467,026 | |||||||||
Hong Kong—1.4% | |||||||||||
118,570 | China Mobile Ltd. ADR | 5,798,073 | |||||||||
India—0.5% | |||||||||||
5,127 | HDFC Bank Ltd. ADR | 764,538 | |||||||||
22,957 | Infosys Technologies Ltd. ADR | 1,374,665 | |||||||||
2,139,203 | |||||||||||
Indonesia—1.3% | |||||||||||
160,330 | Telekomunikasi Indonesia Tbk PT ADR | 5,566,658 | |||||||||
Ireland—2.4% | |||||||||||
76,548 | Cooper Industries PLC, Class A | 3,758,507 | |||||||||
232,812 | CRH PLC ADR | 6,656,095 | |||||||||
10,414,602 | |||||||||||
Israel—1.3% | |||||||||||
62,980 | Elbit Systems Ltd. | 3,882,717 | |||||||||
25,718 | Teva Pharmaceutical Industries Ltd. ADR | 1,510,418 | |||||||||
5,393,135 | |||||||||||
Japan—1.3% | |||||||||||
91,927 | Canon, Inc. ADR | 4,199,225 | |||||||||
11,543 | Kyocera Corp. ADR | 1,134,100 | |||||||||
5,333,325 | |||||||||||
Mexico—8.0% | |||||||||||
31,896 | America Movil SAB de CV, Series L ADR | 1,642,006 | |||||||||
21,506 | Coca-Cola Femsa SAB de CV ADR | 1,505,420 | |||||||||
288,050 | Grupo Aeroportuario del Sureste SAB de CV ADR | 15,940,687 | |||||||||
982,079 | Telefonos de Mexico SAB de CV ADR | 15,074,913 | |||||||||
34,163,026 | |||||||||||
Netherlands—1.6% | |||||||||||
228,929 | Unilever NV | 6,927,391 | |||||||||
Norway—1.2% | |||||||||||
220,522 | Statoil ASA ADR | 5,330,017 | |||||||||
Russia—2.0% | |||||||||||
158,383 | Mobile Telesystems OJSC ADR | 8,750,661 |
See Notes to Financial Statements.
25
Schedule of Investments (Continued)
PowerShares International Dividend AchieversTM Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
Spain—7.0% | |||||||||||
992,370 | Banco Santander SA ADR | $ | 12,245,846 | ||||||||
363,566 | Repsol Ypf SA ADR | 8,525,623 | |||||||||
132,445 | Telefonica SA ADR | 8,977,122 | |||||||||
29,748,591 | |||||||||||
Switzerland—2.9% | |||||||||||
25,781 | Alcon, Inc. | 4,018,227 | |||||||||
106,578 | Novartis AG ADR | 5,419,491 | |||||||||
56,846 | Syngenta AG ADR | 2,871,291 | |||||||||
12,309,009 | |||||||||||
Turkey—2.2% | |||||||||||
593,548 | Turkcell Iletisim Hizmetleri AS ADR | 9,597,671 | |||||||||
United Kingdom—25.3% | |||||||||||
209,825 | AstraZeneca PLC ADR | 9,280,560 | |||||||||
68,166 | BHP Billiton PLC ADR | 4,158,126 | |||||||||
182,970 | BP PLC ADR | 9,541,886 | |||||||||
123,161 | British American Tobacco PLC ADR | 7,814,565 | |||||||||
154,784 | British Sky Broadcasting Group PLC ADR | 5,792,017 | |||||||||
91,621 | Diageo PLC ADR | 6,243,055 | |||||||||
239,995 | GlaxoSmithKline PLC ADR | 8,949,414 | |||||||||
288,522 | InterContinental Hotels Group PLC ADR | 5,075,102 | |||||||||
220,020 | National Grid PLC ADR | 10,673,170 | |||||||||
387,895 | Pearson PLC ADR | 6,194,683 | |||||||||
231,765 | Reed Elsevier PLC ADR | 7,323,774 | |||||||||
46,626 | Smith & Nephew PLC ADR | 2,419,889 | |||||||||
265,443 | Unilever PLC ADR | 7,989,834 | |||||||||
443,995 | Vodafone Group PLC ADR | 9,856,689 | |||||||||
129,048 | WPP PLC ADR | 6,817,606 | |||||||||
108,130,370 | |||||||||||
United States—4.7% | |||||||||||
78,756 | ACE Ltd. | 4,189,032 | |||||||||
42,391 | Bunge Ltd. | 2,244,603 | |||||||||
56,536 | PartnerRe Ltd. | 4,386,063 | |||||||||
33,231 | Schlumberger Ltd. | 2,373,358 | |||||||||
13,800 | Shire PLC ADR | 908,592 | |||||||||
178,422 | Willis Group Holdings PLC | 6,146,638 | |||||||||
20,248,286 | |||||||||||
Total Investments (Cost $394,573,421)—99.9% | 427,286,760 | ||||||||||
Other assets less liabilities—0.1% | 495,928 | ||||||||||
Net Assets—100.0% | $ | 427,782,688 |
Investment Abbreviations:
ADR—American Depositary Receipt
See Notes to Financial Statements.
26
This page intentionally left blank
Statements of Assets and Liabilities
April 30, 2010
PowerShares Buyback AchieversTM Portfolio | PowerShares Dividend AchieversTM Portfolio | PowerShares Financial Preferred Portfolio | PowerShares High Yield Equity Dividend AchieversTM Portfolio | PowerShares International Dividend AchieversTM Portfolio | |||||||||||||||||||
ASSETS: | |||||||||||||||||||||||
Unaffiliated investments, at value | $ | 38,057,172 | $ | 133,373,072 | $ | 1,043,644,815 | $ | 127,846,009 | $ | 427,286,760 | |||||||||||||
Affiliated investments, at value (Note 4) | — | — | 660,940,782 | — | — | ||||||||||||||||||
Receivables: | |||||||||||||||||||||||
Investments sold | 1,648,786 | 694,318 | 14,962,514 | 10,211,259 | 38,886,724 | ||||||||||||||||||
Shares sold | 1,118,213 | 660,298 | — | 7,594,812 | 10,694,595 | ||||||||||||||||||
Expense waivers | 7,485 | — | 12,708 | 4,575 | 1,809 | ||||||||||||||||||
Dividends | 892 | 268,181 | 5,918,872 | 234,019 | 1,211,665 | ||||||||||||||||||
Foreign tax reclaims | — | — | — | — | 146,432 | ||||||||||||||||||
Other assets | 3,002 | 3,000 | 2,000 | 3,000 | 3,502 | ||||||||||||||||||
Total Assets | 40,835,550 | 134,998,869 | 1,725,481,691 | 145,893,674 | 478,231,487 | ||||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||
Due to custodian | 6,064 | 6,303 | 45,553 | 63,244 | 435,401 | ||||||||||||||||||
Payables: | |||||||||||||||||||||||
Investments purchased | 1,622,900 | 810,006 | 9,212,710 | 10,668,639 | 38,942,378 | ||||||||||||||||||
Shares repurchased | 1,118,213 | 660,299 | — | 7,594,812 | 10,694,595 | ||||||||||||||||||
Expense recapture | — | 4,288 | — | — | — | ||||||||||||||||||
Accrued advisory fees | 15,699 | 43,193 | 711,490 | 42,111 | 141,884 | ||||||||||||||||||
Accrued expenses | 53,468 | 94,510 | 687,572 | 100,796 | 234,541 | ||||||||||||||||||
Total Liabilities | 2,816,344 | 1,618,599 | 10,657,325 | 18,469,602 | 50,448,799 | ||||||||||||||||||
NET ASSETS | $ | 38,019,206 | $ | 133,380,270 | $ | 1,714,824,366 | $ | 127,424,072 | $ | 427,782,688 | |||||||||||||
NET ASSETS CONSIST OF: | |||||||||||||||||||||||
Shares of beneficial interest | $ | 59,105,672 | $ | 140,192,636 | $ | 1,493,474,068 | $ | 258,174,196 | $ | 620,360,201 | |||||||||||||
Undistributed net investment income (loss) | (3,486 | ) | 558,686 | (3,284,219 | ) | (5,951 | ) | 1,889,940 | |||||||||||||||
Accumulated net realized loss on investments and foreign currency related transactions | (24,456,751 | ) | (21,056,145 | ) | (53,022,446 | ) | (145,177,197 | ) | (227,180,792 | ) | |||||||||||||
Net unrealized appreciation on investments | 3,373,771 | 13,685,093 | 277,656,963 | 14,433,024 | 32,713,339 | ||||||||||||||||||
Net Assets | $ | 38,019,206 | $ | 133,380,270 | $ | 1,714,824,366 | $ | 127,424,072 | $ | 427,782,688 | |||||||||||||
Shares outstanding (unlimited amount authorized, $0.01 par value) | 1,700,000 | 10,100,000 | 101,050,000 | 15,100,000 | 30,000,000 | ||||||||||||||||||
Net asset value | $ | 22.36 | $ | 13.21 | $ | 16.97 | $ | 8.44 | $ | 14.26 | |||||||||||||
Share price | $ | 22.37 | $ | 13.32 | $ | 16.93 | $ | 8.52 | $ | 14.26 | |||||||||||||
Unaffiliated investments, at cost | $ | 34,683,401 | $ | 119,687,979 | $ | 860,551,681 | $ | 113,412,985 | $ | 394,573,421 | |||||||||||||
Affiliated investments, at cost | $ | — | $ | — | $ | 566,376,953 | $ | — | $ | — |
See Notes to Financial Statements.
28
Statements of Operations
Year Ended April 30, 2010
PowerShares Buyback AchieversTM Portfolio | PowerShares Dividend AchieversTM Portfolio | PowerShares Financial Preferred Portfolio | PowerShares High Yield Equity Dividend AchieversTM Portfolio | PowerShares International Dividend AchieversTM Portfolio | |||||||||||||||||||
INVESTMENT INCOME: | |||||||||||||||||||||||
Unaffiliated dividend income | $ | 565,021 | $ | 3,004,970 | $ | 79,329,654 | $ | 5,309,713 | $ | 12,771,520 | |||||||||||||
Affiliated dividend income | — | — | 42,954,741 | — | — | ||||||||||||||||||
Foreign withholding tax | — | — | — | — | (1,083,772 | ) | |||||||||||||||||
Total Income | 565,021 | 3,004,970 | 122,284,395 | 5,309,713 | 11,687,748 | ||||||||||||||||||
EXPENSES: | |||||||||||||||||||||||
Advisory fees | 167,787 | 416,862 | 6,830,817 | 423,163 | 1,451,325 | ||||||||||||||||||
Accounting & administration fees | 64,668 | 64,668 | 337,045 | 64,668 | 88,066 | ||||||||||||||||||
Sub-licensing | 33,557 | 104,221 | 1,366,158 | 105,791 | 362,831 | ||||||||||||||||||
Professional fees | 31,193 | 33,403 | 77,739 | 34,508 | 44,657 | ||||||||||||||||||
Custodian & transfer agent fees | 11,695 | 15,790 | 82,854 | 13,174 | 34,154 | ||||||||||||||||||
Trustees | 5,161 | 7,473 | 45,719 | 7,527 | 15,632 | ||||||||||||||||||
Other expenses | 12,276 | 27,052 | 140,027 | 36,816 | 77,489 | ||||||||||||||||||
Total Expenses | 326,337 | 669,469 | 8,880,359 | 685,647 | 2,074,154 | ||||||||||||||||||
(Waivers) | (91,435 | ) | (44,165 | ) | (16,650 | ) | (50,903 | ) | (2,335 | ) | |||||||||||||
Net Expenses | 234,902 | 625,304 | 8,863,709 | 634,744 | 2,071,819 | ||||||||||||||||||
Net Investment Income | 330,119 | 2,379,666 | 113,420,686 | 4,674,969 | 9,615,929 | ||||||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | |||||||||||||||||||||||
Net realized gain (loss) from: | |||||||||||||||||||||||
Investments | (2,184,984 | ) | (3,797,479 | ) | 1,405,308 | (6,798,502 | ) | (39,712,280 | ) | ||||||||||||||
In-kind redemptions | 6,813,411 | 716,539 | 64,972,403 | 14,236,392 | 29,551,741 | ||||||||||||||||||
Foreign currency related transactions | — | — | — | — | (423 | ) | |||||||||||||||||
Net realized gain (loss) | 4,628,427 | (3,080,940 | ) | 66,377,711 | 7,437,890 | (10,160,962 | ) | ||||||||||||||||
Net change in unrealized appreciation on investments | 6,305,908 | 28,168,674 | 350,585,680 | 26,851,833 | 122,485,105 | ||||||||||||||||||
Net realized and unrealized gain on investments | 10,934,335 | 25,087,734 | 416,963,391 | 34,289,723 | 112,324,143 | ||||||||||||||||||
Net increase in net assets resulting from operations | $ | 11,264,454 | $ | 27,467,400 | $ | 530,384,077 | $ | 38,964,692 | $ | 121,940,072 |
See Notes to Financial Statements.
29
Statements of Changes in Net Assets
PowerShares Buyback AchieversTM Portfolio | PowerShares Dividend AchieversTM Portfolio | PowerShares Financial Preferred Portfolio | |||||||||||||||||||||||||
Year Ended April 30, 2010 | Year Ended April 30, 2009 | Year Ended April 30, 2010 | Year Ended April 30, 2009 | Year Ended April 30, 2010 | Year Ended April 30, 2009 | ||||||||||||||||||||||
OPERATIONS: | |||||||||||||||||||||||||||
Net investment income | $ | 330,119 | $ | 582,297 | $ | 2,379,666 | $ | 2,203,526 | $ | 113,420,686 | $ | 43,970,503 | |||||||||||||||
Net realized gain (loss) on investments and foreign currency related transactions | 4,628,427 | (16,495,774 | ) | (3,080,940 | ) | (17,861,143 | ) | 66,377,711 | (79,802,465 | ) | |||||||||||||||||
Net change in unrealized appreciation (depreciation) on investments | 6,305,908 | (88,168 | ) | 28,168,674 | (12,388,077 | ) | 350,585,680 | (65,037,561 | ) | ||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 11,264,454 | (16,001,645 | ) | 27,467,400 | (28,045,694 | ) | 530,384,077 | (100,869,523 | ) | ||||||||||||||||||
Undistributed net investment income (loss) included in the price of units issued and redeemed | 6,239 | (41,505 | ) | 92,598 | 182,813 | (1,698,335 | ) | 502,058 | |||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||||||||||||
Net investment income | (467,441 | ) | (456,573 | ) | (2,653,314 | ) | (1,482,708 | ) | (112,572,843 | ) | (46,382,363 | ) | |||||||||||||||
Return of capital | — | — | — | — | (4,876,161 | ) | (744,661 | ) | |||||||||||||||||||
Total distributions to shareholders | (467,441 | ) | (456,573 | ) | (2,653,314 | ) | (1,482,708 | ) | (117,449,004 | ) | (47,127,024 | ) | |||||||||||||||
SHAREHOLDER TRANSACTIONS: | |||||||||||||||||||||||||||
Proceeds from shares sold | 26,715,685 | — | 54,083,996 | 77,327,973 | 658,426,601 | 710,379,663 | |||||||||||||||||||||
Value of shares repurchased | (26,949,276 | ) | (17,217,725 | ) | (30,968,874 | ) | (22,099,826 | ) | (130,181,507 | ) | (25,864,980 | ) | |||||||||||||||
Net income (loss) equalization | (6,239 | ) | 41,505 | (92,598 | ) | (182,813 | ) | 1,698,335 | (502,058 | ) | |||||||||||||||||
Net increase (decrease) in net assets resulting from shares transactions | (239,830 | ) | (17,176,220 | ) | 23,022,524 | 55,045,334 | 529,943,429 | 684,012,625 | |||||||||||||||||||
Increase (Decrease) in Net Assets | 10,563,422 | (33,675,943 | ) | 47,929,208 | 25,699,745 | 941,180,167 | 536,518,136 | ||||||||||||||||||||
NET ASSETS: | |||||||||||||||||||||||||||
Beginning of year | 27,455,784 | 61,131,727 | 85,451,062 | 59,751,317 | 773,644,199 | 237,126,063 | |||||||||||||||||||||
End of year | $ | 38,019,206 | $ | 27,455,784 | $ | 133,380,270 | $ | 85,451,062 | $ | 1,714,824,366 | $ | 773,644,199 | |||||||||||||||
Undistributed net investment income (loss) at end of year | $ | (3,486 | ) | $ | 133,836 | $ | 558,686 | $ | 838,109 | $ | (3,284,219 | ) | $ | (3,293,978 | ) | ||||||||||||
CHANGES IN SHARES OUTSTANDING: | |||||||||||||||||||||||||||
Shares sold | 1,350,000 | — | 4,450,000 | 6,800,000 | 41,950,000 | 59,400,000 | |||||||||||||||||||||
Shares repurchased | (1,350,000 | ) | (1,000,000 | ) | (2,650,000 | ) | (2,200,000 | ) | (8,700,000 | ) | (2,800,000 | ) | |||||||||||||||
Shares outstanding, beginning of year | 1,700,000 | 2,700,000 | 8,300,000 | 3,700,000 | 67,800,000 | 11,200,000 | |||||||||||||||||||||
Shares outstanding, end of year | 1,700,000 | 1,700,000 | 10,100,000 | 8,300,000 | 101,050,000 | 67,800,000 |
See Notes to Financial Statements.
30
PowerShares High Yield Equity Dividend AchieversTM Portfolio | PowerShares International Dividend AchieversTM Portfolio | ||||||||||||||||||
Year Ended April 30, 2010 | Year Ended April 30, 2009 | Year Ended April 30, 2010 | Year Ended April 30, 2009 | ||||||||||||||||
OPERATIONS: | |||||||||||||||||||
Net investment income | $ | 4,674,969 | $ | 6,705,369 | $ | 9,615,929 | $ | 14,435,715 | |||||||||||
Net realized gain (loss) on investments and foreign currency related transactions | 7,437,890 | (130,934,983 | ) | (10,160,962 | ) | (220,533,133 | ) | ||||||||||||
Net change in unrealized appreciation (depreciation) on investments | 26,851,833 | 46,776,383 | 122,485,105 | (62,969,469 | ) | ||||||||||||||
Net increase (decrease) in net assets resulting from operations | 38,964,692 | (77,453,231 | ) | 121,940,072 | (269,066,887 | ) | |||||||||||||
Undistributed net investment income (loss) included in the price of units issued and redeemed | 1,096 | (12,060 | ) | 446,981 | (238,634 | ) | |||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||||
Net investment income | (4,674,671 | ) | (6,711,618 | ) | (12,740,323 | ) | (15,651,696 | ) | |||||||||||
Return of capital | (344,802 | ) | (423,105 | ) | — | — | |||||||||||||
Total distributions to shareholders | (5,019,473 | ) | (7,134,723 | ) | (12,740,323 | ) | (15,651,696 | ) | |||||||||||
SHAREHOLDER TRANSACTIONS: | |||||||||||||||||||
Proceeds from shares sold | 64,896,968 | 55,194,101 | 130,274,190 | 169,724,730 | |||||||||||||||
Value of shares repurchased | (58,264,459 | ) | (67,836,421 | ) | (68,274,834 | ) | (180,052,073 | ) | |||||||||||
Net income (loss) equalization | (1,096 | ) | 12,060 | (446,981 | ) | 238,634 | |||||||||||||
Net increase (decrease) in net assets resulting from shares transactions | 6,631,413 | (12,630,260 | ) | 61,552,375 | (10,088,709 | ) | |||||||||||||
Increase (Decrease) in Net Assets | 40,577,728 | (97,230,274 | ) | 171,199,105 | (295,045,926 | ) | |||||||||||||
NET ASSETS: | |||||||||||||||||||
Beginning of year | 86,846,344 | 184,076,618 | 256,583,583 | 551,629,509 | |||||||||||||||
End of year | $ | 127,424,072 | $ | 86,846,344 | $ | 427,782,688 | $ | 256,583,583 | |||||||||||
Undistributed net investment income (loss) at end of year | $ | (5,951 | ) | $ | (6,249 | ) | $ | 1,889,940 | $ | 3,220,322 | |||||||||
CHANGES IN SHARES OUTSTANDING: | |||||||||||||||||||
Shares sold | 8,550,000 | 8,300,000 | 9,700,000 | 12,000,000 | |||||||||||||||
Shares repurchased | (7,650,000 | ) | (10,300,000 | ) | (5,000,000 | ) | (14,800,000 | ) | |||||||||||
Shares outstanding, beginning of year | 14,200,000 | 16,200,000 | 25,300,000 | 28,100,000 | |||||||||||||||
Shares outstanding, end of year | 15,100,000 | 14,200,000 | 30,000,000 | 25,300,000 |
31
Financial Highlights
PowerShares Buyback AchieversTM Portfolio
Year Ended April 30, | For the Period December 20, 2006* Through | ||||||||||||||||||
2010 | 2009 | 2008 | April 30, 2007 | ||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||
Net asset value at beginning of period | $ | 16.15 | $ | 22.64 | $ | 25.99 | $ | 24.98 | |||||||||||
Net investment income** | 0.19 | 0.26 | 0.10 | 0.01 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 6.29 | (6.55 | ) | (3.35 | ) | 1.02 | |||||||||||||
Total from investment operations | 6.48 | (6.29 | ) | (3.25 | ) | 1.03 | |||||||||||||
Distributions to shareholders from: | |||||||||||||||||||
Net investment income | (0.27 | ) | (0.20 | ) | (0.10 | ) | (0.02 | ) | |||||||||||
Net asset value at end of period | $ | 22.36 | $ | 16.15 | $ | 22.64 | $ | 25.99 | |||||||||||
Share price at end of period*** | $ | 22.37 | $ | 16.16 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN**** | 40.46 | % | (27.87 | )% | (12.53 | )% | 4.13 | % | |||||||||||
SHARE PRICE TOTAL RETURN**** | 40.43 | % | (27.80 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 38,019 | $ | 27,456 | $ | 61,132 | $ | 62,383 | |||||||||||
Ratio to average net assets of: | |||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.70 | % | 0.70 | % | 0.73 | % | 0.73 | %† | |||||||||||
Expenses, prior to (Waivers) and/or Recapture | 0.97 | % | 0.92 | % | 0.79 | % | 1.04 | %† | |||||||||||
Net investment income, after (Waivers) and/or Recapture | 0.98 | % | 1.39 | % | 0.41 | % | 0.15 | %† | |||||||||||
Portfolio turnover rate †† | 23 | % | 56 | % | 46 | % | 38 | % | |||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | 0.00 | (a) | $ | (0.02 | ) | $ | (0.01 | ) | $ | 0.01 |
PowerShares Dividend AchieversTM Portfolio
Year Ended April 30, | For the Period September 15, 2005* Through | ||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | April 30, 2006 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 10.30 | $ | 16.15 | $ | 17.52 | $ | 15.63 | $ | 14.84 | |||||||||||||
Net investment income** | 0.27 | 0.36 | 0.37 | 0.32 | 0.17 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 2.96 | (5.92 | ) | (1.41 | ) | 1.88 | 0.78 | ||||||||||||||||
Total from investment operations | 3.23 | (5.56 | ) | (1.04 | ) | 2.20 | 0.95 | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.32 | ) | (0.29 | ) | (0.33 | ) | (0.31 | ) | (0.16 | ) | |||||||||||||
Net asset value at end of period | $ | 13.21 | $ | 10.30 | $ | 16.15 | $ | 17.52 | $ | 15.63 | |||||||||||||
Share price at end of period*** | $ | 13.32 | $ | 10.30 | |||||||||||||||||||
NET ASSET VALUE, TOTAL RETURN**** | 31.76 | % | (34.84 | )% | (6.00 | )% | 14.26 | % | 6.45 | % | |||||||||||||
SHARE PRICE TOTAL RETURN**** | 31.76 | % | (34.84 | )% | |||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 133,380 | $ | 85,451 | $ | 59,751 | $ | 70,079 | $ | 23,449 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.60 | % | 0.60 | % | 0.60 | % | 0.60 | % | 0.67 | %† | |||||||||||||
Expenses, prior to (Waivers) and/or Recapture | 0.64 | % | 0.74 | % | 0.72 | % | 0.92 | % | 1.02 | %† | |||||||||||||
Net investment income, after (Waivers) and/or Recapture | 2.28 | % | 3.11 | % | 2.15 | % | 1.94 | % | 1.81 | %† | |||||||||||||
Portfolio turnover rate †† | 18 | % | 31 | % | 8 | % | 9 | % | 8 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | 0.01 | $ | 0.03 | $ | (0.01 | ) | $ | 0.03 | $ | 0.00 | (a) |
* Commencement of Investment Operations.
** Based on average shares outstanding.
*** The mean between the last bid and ask prices.
**** Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all dividends and distributions at share price during the period, and sale at the share price on the last day of the period. Total investment return calculated for a period of less than one year is not annualized.
† Annualized.
†† Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
# The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(a) Amount represents less than $0.005.
See Notes to Financial Statements.
32
Financial Highlights (Continued)
PowerShares Financial Preferred Portfolio
Year Ended April 30, | For the Period December 1, 2006* Through | ||||||||||||||||||
2010 | 2009 | 2008 | April 30, 2007 | ||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||
Net asset value at beginning of period | $ | 11.41 | $ | 21.17 | $ | 24.78 | $ | 25.12 | |||||||||||
Net investment income** | 1.31 | 1.35 | 1.35 | 0.41 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 5.61 | (9.63 | ) | (3.50 | ) | (0.12 | ) | ||||||||||||
Total from investment operations | 6.92 | (8.28 | ) | (2.15 | ) | 0.29 | |||||||||||||
Distributions to shareholders from: | |||||||||||||||||||
Net investment income | (1.30 | ) | (1.46 | ) | (1.46 | ) | (0.63 | ) | |||||||||||
Return of capital | (0.06 | ) | (0.02 | ) | — | — | |||||||||||||
Total distributions | (1.36 | ) | (1.48 | ) | (1.46 | ) | (0.63 | ) | |||||||||||
Net asset value at end of period | $ | 16.97 | $ | 11.41 | $ | 21.17 | $ | 24.78 | |||||||||||
Share price at end of period*** | $ | 16.93 | $ | 11.41 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN**** | 62.16 | % | (39.56 | )% | (8.77 | )% | 1.18 | % | |||||||||||
SHARE PRICE TOTAL RETURN**** | 61.76 | % | (39.82 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 1,714,824 | $ | 773,644 | $ | 237,126 | $ | 99,118 | |||||||||||
Ratio to average net assets of: | |||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.65 | % | 0.69 | % | 0.72 | % | 0.72 | %† | |||||||||||
Expenses, prior to (Waivers) and/or Recapture | 0.65 | % | 0.68 | % | 0.74 | % | 0.89 | %† | |||||||||||
Net investment income, after (Waivers) and/or Recapture | 8.30 | % | 11.49 | % | 6.20 | % | 4.63 | %† | |||||||||||
Portfolio turnover rate †† | 23 | % | 45 | % | 80 | % | 0 | % | |||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | (0.02 | ) | $ | 0.02 | $ | 0.03 | $ | 0.07 |
PowerShares High Yield Equity Dividend AchieversTM Portfolio
Year Ended April 30, | |||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | 2006 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of year | $ | 6.12 | $ | 11.36 | $ | 15.82 | $ | 15.07 | $ | 14.41 | |||||||||||||
Net investment income** | 0.32 | 0.43 | 0.62 | 0.54 | 0.53 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 2.35 | (5.21 | ) | (4.42 | ) | 0.84 | 0.61 | ||||||||||||||||
Total from investment operations | 2.67 | (4.78 | ) | (3.80 | ) | 1.38 | 1.14 | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.33 | ) | (0.43 | ) | (0.63 | ) | (0.60 | ) | (0.48 | ) | |||||||||||||
Return of capital | (0.02 | ) | (0.03 | ) | (0.03 | ) | (0.03 | ) | — | ||||||||||||||
Total distributions | (0.35 | ) | (0.46 | ) | (0.66 | ) | (0.63 | ) | (0.48 | ) | |||||||||||||
Net asset value at end of year | $ | 8.44 | $ | 6.12 | $ | 11.36 | $ | 15.82 | $ | 15.07 | |||||||||||||
Share price at end of year*** | $ | 8.52 | $ | 6.12 | |||||||||||||||||||
NET ASSET VALUE, TOTAL RETURN**** | 44.59 | % | (42.88 | )% | (24.67 | )% | 9.28 | % | 7.92 | % | |||||||||||||
SHARE PRICE TOTAL RETURN**** | 44.58 | % | (42.88 | )% | |||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 127,424 | $ | 86,846 | $ | 184,077 | $ | 439,820 | $ | 459,690 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.60 | % | 0.60 | % | 0.60 | % | 0.60 | % | 0.61 | % | |||||||||||||
Expenses, prior to (Waivers) and/or Recapture | 0.65 | % | 0.62 | % | 0.56 | % | 0.60 | % | 0.65 | % | |||||||||||||
Net investment income, after (Waivers) and/or Recapture | 4.42 | % | 5.24 | % | 4.35 | % | 3.47 | % | 3.49 | % | |||||||||||||
Portfolio turnover rate †† | 57 | % | 77 | % | 42 | % | 20 | % | 9 | % | |||||||||||||
Undistributed net investment income included in price of units issued and redeemed**# | $ | 0.00 | (a) | $ | 0.00 | (a) | $ | 0.02 | $ | 0.00 | (a) | $ | 0.02 |
* Commencement of Investment Operations.
** Based on average shares outstanding.
*** The mean between the last bid and ask prices.
**** Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all dividends and distributions at share price during the period, and sale at the share price on the last day of the period. Total investment return calculated for a period of less than one year is not annualized.
† Annualized.
†† Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
# The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(a) Amount represents less than $0.005.
See Notes to Financial Statements.
33
Financial Highlights (Continued)
PowerShares International Dividend AchieversTM Portfolio
Year Ended April 30, | For the Period September 15, 2005* Through | ||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | April 30, 2006 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 10.14 | $ | 19.63 | $ | 20.12 | $ | 16.92 | $ | 14.96 | |||||||||||||
Net investment income** | 0.35 | 0.52 | 0.68 | 0.53 | 0.28 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 4.24 | (9.46 | ) | (0.61 | ) | 3.20 | 1.88 | ||||||||||||||||
Total from investment operations | 4.59 | (8.94 | ) | 0.07 | 3.73 | 2.16 | |||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.47 | ) | (0.55 | ) | (0.56 | ) | (0.53 | ) | (0.20 | ) | |||||||||||||
Net asset value at end of period | $ | 14.26 | $ | 10.14 | $ | 19.63 | $ | 20.12 | $ | 16.92 | |||||||||||||
Share price at end of period*** | $ | 14.26 | $ | 10.15 | |||||||||||||||||||
NET ASSET VALUE, TOTAL RETURN**** | 45.77 | % | (46.44 | )% | 0.34 | % | 22.56 | % | 14.50 | % | |||||||||||||
SHARE PRICE TOTAL RETURN**** | 45.62 | % | (46.30 | )% | |||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 427,783 | $ | 256,584 | $ | 551,630 | $ | 553,200 | $ | 170,843 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.57 | % | 0.57 | % | 0.58 | % | 0.60 | % | 0.62 | %† | |||||||||||||
Expenses, prior to (Waivers) and/or Recapture | 0.57 | % | 0.57 | % | 0.56 | % | 0.62 | % | 0.69 | %† | |||||||||||||
Net investment income, after (Waivers) and/or Recapture | 2.65 | % | 3.87 | % | 3.28 | % | 2.98 | % | 3.06 | %† | |||||||||||||
Portfolio turnover rate †† | 63 | % | 50 | % | 43 | % | 22 | % | 8 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | 0.02 | $ | (0.01 | ) | $ | (0.02 | ) | $ | 0.11 | $ | 0.04 |
* Commencement of Investment Operations.
** Based on average shares outstanding.
*** The mean between the last bid and ask prices.
**** Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all dividends and distributions at share price during the period, and sale at the share price on the last day of the period. Total investment return calculated for a period of less than one year is not annualized.
† Annualized.
†† Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
# The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
See Notes to Financial Statements.
34
Notes to Financial Statements
PowerShares Exchange-Traded Fund Trust
April 30, 2010
Note 1. Organization
PowerShares Exchange-Traded Fund Trust (the "Trust") was organized as a Massachusetts business trust on June 9, 2000 and is authorized to have multiple series of portfolios. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"). As of April 30, 2010, the Trust offered sixty-two portfolios. This report includes the following portfolios:
Full Name | Short Name | ||||||
PowerShares Buyback AchieversTM Portfolio | "Buyback AchieversTM Portfolio" | ||||||
PowerShares Dividend AchieversTM Portfolio | "Dividend AchieversTM Portfolio" | ||||||
PowerShares Financial Preferred Portfolio | "Financial Preferred Portfolio" | ||||||
PowerShares High Yield Equity Dividend AchieversTM Portfolio | "High Yield Equity Dividend AchieversTM Portfolio" | ||||||
PowerShares International Dividend AchieversTM Portfolio | "International Dividend AchieversTM Portfolio" | ||||||
Each portfolio (the "Fund" and collectively the "Funds") represents a separate series of the Trust. The shares of the Funds are referred to herein as "Shares" or "Fund's Shares." Each Fund's Shares are listed and traded on the NYSE Arca, Inc. The Funds' market prices may differ to some degree from the net asset value ("NAV") of the Shares of each Fund. Unlike conventional mutual funds, each Fund issues and redeems Shares on a continuous basis, at NAV, only in a large specified number of Shares, each called a "Creation Unit." Creation Units are issued and redeemed generally in-kind for securities included in the relevant index. Except when aggregated in Creation Units, the Shares are not individually redeemable securities of the Funds.
The investment objective of each Fund is to seek investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the following indices (each, an "Underlying Index"):
Fund | Index | ||||||
Buyback AchieversTM Portfolio | Share BuyBack AchieversTM Index | ||||||
Dividend AchieversTM Portfolio | Broad Dividend AchieversTM Index | ||||||
Financial Preferred Portfolio | Wells Fargo® Hybrid & Preferred Financial Index | ||||||
High Yield Equity Dividend AchieversTM Portfolio | Mergent Dividend AchieversTM 50 Index | ||||||
International Dividend AchieversTM Portfolio | International Dividend AchieversTM Index | ||||||
Note 2. Significant Accounting Policies
The preparation of the financial statements in accordance with Generally Accepted Accounting Principles ("GAAP") in the United States of America requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements, including estimates and assumptions related to taxation. Actual results could differ from these estimates. In addition, the Funds monitor for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
35
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
A. Security Valuation
Securities, including restricted securities, are valued according to the following policies.
A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. Listed options, if no closing price is available, are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices.
Investments in open-end registered investment companies not traded on an exchange are valued at the end of day NAV per share.
Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the London world markets. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the New York Stock Exchange ("NYSE"), closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to refl ect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accou nting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources.
36
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust's officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security's fair value.
Valuations change in response to many factors, including the historical and prospective earnings of the issuer, the value of the issuer's assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B. Other Risks
Replication Management Risk. The Funds are not "actively" managed and do not seek returns in excess of their respective Underlying Indices. Therefore, they would not necessarily sell a stock because the stock's issuer was in financial trouble unless that stock is removed from its Underlying Index.
Non-Diversified Fund Risk. Buyback AchieversTM Portfolio and Financial Preferred Portfolio are considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single investment could cause greater fluctuations in Share price than would occur in a diversified fund.
Concentration Risk. If a Fund concentrates its investments in an industry or group of industries, the value of the Fund's Shares may rise and fall more than the value of shares of a fund that invests in a broader range of securities.
Non-Correlation Risk. Each Fund's return may not match the return of its Underlying Index for a number of reasons. For example, each Fund incurs operating expenses not applicable to the Underlying Index, and incurs costs in buying and selling securities, especially when rebalancing the Fund's securities holdings to reflect changes in the composition of its Underlying Index. In addition, the performance of each Fund and its Underlying Index may vary due to asset valuation differences and differences between each Fund's portfolio and its Underlying Index resulting from legal restrictions, cost or liquidity constraints.
Foreign and Emerging Market Securities Risk. With respect to International Dividend Achievers Portfolio, investments in the securities of non-U.S. issuers involve risks beyond those associated with investments in U.S. securities. These additional risks include greater market volatility, the availability of less reliable financial information, higher transactional costs, taxation by foreign governments, decreased market liquidity and political instability. As the Fund will invest in securities denominated in foreign currencies, changes in currency exchange rates may negatively impact the Fund's returns.
Geographic Risk. Funds that are less diversified across geographic regions, countries, industries or individual companies are generally riskier than more diversified funds. The economies and financial markets of certain regions can be interdependent and may all decline at the same time.
Sampling Risk. With respect to Financial Preferred Portfolio, the Fund's use of a representative sampling approach will result in holding a smaller number of securities than are in its Underlying Index. As a result, an adverse development respecting an issuer of securities held by the Fund could result in a greater decline
37
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
in NAV than would be the case if each Fund held all of the securities in its Underlying Index. To the extent the assets in the Fund are smaller, these risks will be greater.
C. Federal Income Taxes
Each Fund intends to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of the Fund's taxable earnings to its shareholders. As such, the Funds will not be subject to Federal income taxes on otherwise taxable income (including net realized gains) that is distributed to the shareholders. Therefore, no provision for Federal income taxes is recorded in the Financial Statements.
Income and capital gain distributions are determined in accordance with Federal income tax regulations, which may differ from GAAP. These differences are primarily due to differing book and tax treatments for in-kind transactions, losses deferred due to wash sales, and passive foreign investment company adjustments, if any.
The Funds file tax returns in the United States Federal jurisdiction and certain other jurisdictions. Generally, a Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
D. Investment Income and Investment Transactions
Dividend income is recorded on the ex-dividend date net of foreign taxes withheld, if any. Interest income is recorded on the accrual basis. Investment transactions are recorded on the trade date. Realized gains and losses from the sale or disposition of securities are calculated on the specific identified cost basis. Dividends and interest received by a Fund may give rise to withholding and other taxes imposed by foreign countries. Corporate actions (including cash dividends) are recorded net of non-reclaimable foreign tax withholdings on the ex-dividend date. Tax conventions between certain countries and the United States may reduce or eliminate such taxes.
E. Expenses
Expenses of the Trust, which are directly identifiable to a specific Fund, are applied to that Fund. Expenses which are not readily identifiable to a specific Fund are allocated in such a manner as deemed equitable, taking into consideration the nature and type of expense and the relative net assets of each Fund.
Each Fund is responsible for all of its expenses, including the investment advisory fees, costs of transfer agency, custody, fund administration, legal, audit and other services, interest, taxes, brokerage commissions and other expenses connected with executions of portfolio transactions, any distribution fees or expenses and extraordinary expenses.
F. Dividends and Distributions to Shareholders
Each Fund (except for the High Yield Equity Dividend AchieversTM Portfolio and Financial Preferred Portfolio, which declare and pay dividends, if any, monthly) declares and pays dividends from net investment income, if any, to its shareholders quarterly and records on ex-dividend date. Each Fund distributes net realized taxable capital gains, if any, generally annually in cash and records on ex-dividend date. Such distributions on a tax basis are determined in conformity with income tax regulations which may differ from GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in such Fund's financial statements as a tax return of capital at fiscal period-end.
38
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
G. Equalization
All Funds use the accounting practice of equalization. This accounting method is used to keep the continuing shareholder's per Share equity in undistributed net investment income from being affected by the continuous sales and redemptions of capital Shares. Equalization is calculated on a per Share basis whereby a portion of the proceeds from the sales and cost of repurchases of capital Shares is applied to undistributed net investment income. The amount of equalization is disclosed in the Statements of Changes in Net Assets as undistributed net investment income included in the price of capital Shares issued or redeemed. The distributions to shareholders of amounts so applied may be deemed to be a return of capital for tax purposes to the extent that such distributions exceed taxable income.
Note 3. Investment Advisory Agreement and Other Agreements
The Trust has entered into an Investment Advisory Agreement with Invesco PowerShares Capital Management LLC (the "Adviser") pursuant to which the Adviser has overall responsibility as the Funds' investment adviser for the selection and ongoing monitoring of the Funds' investments, managing the Funds' business affairs and providing certain clerical, bookkeeping and other administrative services. Each Fund has agreed to pay the Adviser an annual fee of 0.40% of the Fund's average daily net assets except for the Buyback AchieversTM Portfolio and Financial Preferred Portfolio, which pay the Adviser an annual fee of 0.50% of that Fund's average daily net assets.
The Adviser has entered into an Amended and Restated Excess Expense Agreement ("Excess Expense Agreement") with the Trust, pursuant to which the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of each Fund (excluding interest expense, brokerage commissions and other trading expenses, sub-licensing fees, offering costs, taxes and extraordinary expenses) from exceeding 0.50% of the Fund's average daily net assets per year (0.60% of the Fund's average daily net assets per year for the Buyback AchieversTM Portfolio and Financial Preferred Portfolio) (the "Expense Cap"), at least until August 31, 2011. Offering costs excluded from the Expense Cap are: (a) initial legal fees pertaining to the Funds' Shares offered for sale; (b) initial Securities and Exchange Commission and state registration fees; and (c) initial fees paid to be listed on an exchange.
The Excess Expense Agreement provides that the expenses borne by the Adviser are subject to recapture by the Adviser for up to three years from the date the fee or expense was borne by the Adviser, but no recapture payment will be made by a Fund if it would result in the Fund exceeding its Expense Cap as specified above.
The net amount of fees waived and other expenses assumed by the Adviser and the amount of recapture paid to the Adviser pursuant to the Excess Expense Agreement are collectively referred to as "(Waivers) and/or Recapture." The net amounts of (Waivers) and/or Recapture for the fiscal year ended April 30, 2010 are shown on the Statements of Operations.
39
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
The amounts available for potential future recapture by the Adviser under the Excess Expense Agreement and the expiration schedule at April 30, 2010 are as follows:
Total Potential | Potential Recapture Amounts Expiring | ||||||||||||||||||
Recapture Amounts | 04/30/11 | 04/30/12 | 04/30/13 | ||||||||||||||||
Buyback AchieversTM Portfolio | $ | 253,845 | $ | 64,191 | $ | 98,219 | $ | 91,435 | |||||||||||
Dividend AchieversTM Portfolio | 238,491 | 83,876 | 98,990 | 55,625 | |||||||||||||||
Financial Preferred Portfolio | 16,650 | — | — | 16,650 | |||||||||||||||
High Yield Equity Dividend AchieversTM Portfolio | 101,625 | 1,765 | 48,203 | 51,657 | |||||||||||||||
International Dividend AchieversTM Portfolio | 2,335 | — | — | 2,335 |
The Trust has entered into a Distribution Agreement with Invesco Distributors, Inc. (formerly, Invesco Aim Distributors, Inc.) (the "Distributor"), which serves as the distributor of Creation Units for each Fund. The Distributor does not maintain a secondary market in the Shares.
Licensing Fee Agreements
The Adviser has entered into a licensing agreement for each Fund with the following Licensors:
Fund | Licensor | ||||||
Buyback AchieversTM Portfolio | Mergent, Inc. | ||||||
Dividend AchieversTM Portfolio | Mergent, Inc. | ||||||
Financial Preferred Portfolio | Wells Fargo Securities, LLC | ||||||
High Yield Equity Dividend AchieversTM Portfolio | Mergent, Inc. | ||||||
International Dividend AchieversTM Portfolio | Mergent, Inc. | ||||||
Each Underlying Index name trademark is owned by the respective Licensors. These trademarks have been licensed to the Adviser for use with the Funds. The Funds are not sponsored, endorsed, sold or promoted by the Licensors and the Licensors make no representation regarding the advisability of investing in any of these Funds. The Trust has entered into a sub-licensing agreement under which the Funds are required to pay the sub-licensing fees which are shown on the Statements of Operations.
The Trust has entered into service agreements whereby The Bank of New York Mellon, a wholly-owned subsidiary of The Bank of New York Mellon Corporation, serves as the administrator, custodian and fund accountant and transfer agent for each Fund.
Note 4. Investments in Affiliates
The 1940 Act defines "affiliate" to include issuers of which a fund holds 5% or more of the outstanding voting securities. The following is a summary of the transactions with affiliates for the fiscal year ended April 30, 2010.
40
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
Financial Preferred Portfolio
Value 04/30/09 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain | Value 04/30/10 | Dividend Income | |||||||||||||||||||||||||
Axis Capital Holdings Ltd., 7.25%, Series A | $ | 7,409,623 | $ | 5,786,098 | $ | (1,231,467 | ) | $ | 2,972,124 | $ | 414,103 | $ | 15,350,481 | $ | 989,263 | ||||||||||||||||
Bank of America Corp., 6.20%, Series D | 16,416,448 | 15,057,149 | (3,378,063 | ) | 9,272,367 | 1,549,001 | 38,916,902 | 2,539,916 | |||||||||||||||||||||||
Bank of America Corp., 7.25%, Series J | 19,567,010 | 23,022,705 | (6,968,831 | ) | 14,537,430 | 1,808,439 | 51,966,753 | 3,515,818 | |||||||||||||||||||||||
Barclays Bank PLC, 8.13%, Series 5 (United Kingdom) | 46,892,296 | 88,258,275 | (11,313,847 | ) | 25,612,644 | 6,995,940 | 156,445,308 | 8,992,586 | |||||||||||||||||||||||
HSBC Finance Corp., 6.36% | 11,008,920 | 13,934,546 | (2,068,066 | ) | 7,714,828 | 1,459,580 | 32,049,808 | 1,780,669 | |||||||||||||||||||||||
HSBC USA, Inc., 6.50%, Series H | 10,760,558 | 15,089,567 | (2,547,325 | ) | 3,856,898 | 735,956 | 27,895,654 | 1,362,211 | |||||||||||||||||||||||
ING Groep NV, 6.13% (Netherlands) | 13,072,319 | 12,765,139 | (2,393,032 | ) | 7,832,824 | 1,522,220 | 32,799,470 | 2,467,550 | |||||||||||||||||||||||
ING Groep NV, 6.38% (Netherlands) | 19,867,866 | 20,314,148 | (4,325,423 | ) | 11,946,826 | 1,859,563 | 49,662,980 | 3,689,501 | |||||||||||||||||||||||
ING Groep NV, 7.38% (Netherlands) | 26,781,492 | 29,107,919 | (4,982,857 | ) | 17,386,135 | 3,143,673 | 71,436,362 | 5,391,565 | |||||||||||||||||||||||
National Bank of Greece SA, 9.00% (Greece) | 19,699,057 | 15,448,956 | (10,759,901 | ) | (806,875 | ) | 182,126 | 23,763,363 | 2,976,431 | ||||||||||||||||||||||
PartnerRe Ltd., 6.75%, Series C | 9,494,529 | 6,945,053 | (1,368,291 | ) | 2,692,976 | 370,429 | 18,134,696 | 1,033,940 | |||||||||||||||||||||||
Prudential PLC, 6.50% (United Kingdom) | 7,362,383 | 6,718,052 | (1,901,194 | ) | 4,099,429 | 686,260 | 16,964,930 | 1,040,587 | |||||||||||||||||||||||
Prudential PLC, 6.75% (United Kingdom) | 6,245,253 | 5,674,244 | (1,886,067 | ) | 3,776,564 | 570,074 | 14,380,068 | 901,289 | |||||||||||||||||||||||
RenaissanceRe Holdings Ltd., 6.08%, Series C | 6,791,448 | 4,908,842 | (3,310,696 | ) | 1,674,160 | 315,448 | 10,379,202 | 789,061 | |||||||||||||||||||||||
RenaissanceRe Holdings Ltd., 6.60%, Series D | 9,145,818 | 6,557,111 | (4,546,429 | ) | 1,820,165 | 347,092 | 13,323,757 | 1,035,787 | |||||||||||||||||||||||
Santander Finance SA Unipersonal, 10.50%, Series 10 (Spain) | — | 53,991,041 | (3,322,577 | ) | 3,185,097 | 1,190,142 | 55,043,703 | 2,302,224 | |||||||||||||||||||||||
U.S. Bancorp, 7.88%, Series D | 19,137,635 | 16,410,213 | (7,105,503 | ) | 3,086,606 | 898,394 | 32,427,345 | 2,146,343 | |||||||||||||||||||||||
Total Investments in Affiliates | 249,652,655 | 339,989,058 | (73,409,569 | ) | 120,660,198 | 24,048,440 | 660,940,782 | 42,954,741 |
Note 5. Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3) generally when market prices
41
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment's assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of April 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
Investment in Securities | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Buyback AchieversTM Portfolio | |||||||||||||||||||
Equity Securities | $ | 37,996,998 | $ | — | $ | — | $ | 37,996,998 | |||||||||||
Money Market Fund | 60,174 | — | — | 60,174 | |||||||||||||||
Total Investments | 38,057,172 | — | — | 38,057,172 | |||||||||||||||
Dividend AchieversTM Portfolio | |||||||||||||||||||
Equity Securities | 133,363,398 | — | — | 133,363,398 | |||||||||||||||
Money Market Fund | 9,674 | — | — | 9,674 | |||||||||||||||
Total Investments | 133,373,072 | — | — | 133,373,072 | |||||||||||||||
Financial Preferred Portfolio | |||||||||||||||||||
Equity Securities | 1,697,826,977 | — | — | 1,697,826,977 | |||||||||||||||
Money Market Fund | 6,758,620 | — | — | 6,758,620 | |||||||||||||||
Total Investments | 1,704,585,597 | — | — | 1,704,585,597 | |||||||||||||||
High Yield Equity Dividend AchieversTM Portfolio | |||||||||||||||||||
Equity Securities | 127,846,009 | — | — | 127,846,009 | |||||||||||||||
International Dividend AchieversTM Portfolio | |||||||||||||||||||
Equity Securities | 427,286,760 | — | — | 427,286,760 |
42
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
Note 6. Distributions to Shareholders and Tax Components of Net Assets
Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended April 30, 2010 and 2009:
2010 | 2009 | ||||||||||||||||||
Ordinary Income | Return of Capital | Ordinary Income | Return of Capital | ||||||||||||||||
Buyback AchieversTM Portfolio | $ | 467,441 | $ | — | $ | 456,573 | $ | — | |||||||||||
Dividend AchieversTM Portfolio | 2,653,314 | — | 1,482,708 | — | |||||||||||||||
Financial Preferred Portfolio(1) | 86,530,325 | 4,876,161 | 16,849,393 | 744,661 | |||||||||||||||
High Yield Equity Dividend AchieversTM Portfolio | 4,674,671 | 344,802 | 6,711,618 | 423,105 | |||||||||||||||
International Dividend AchieversTM Portfolio | 12,740,323 | — | 15,651, 696 | — |
(1) Tax year-end is October 31.
Tax Components of Net Assets at Fiscal Year-End:
Undistributed Ordinary Income | Temporary Book/Tax Differences | Net Unrealized Appreciation | Capital Loss Carryforward | Post-October Deferrals* | Shares of Beneficial Interest | Total Net Assets | |||||||||||||||||||||||||
Buyback AchieversTM Portfolio | $ | 148 | $ | (3,634 | ) | $ | 3,315,410 | $ | (22,220,755 | ) | $ | (2,177,635 | ) | $ | 59,105,672 | $ | 38,019,206 | ||||||||||||||
Dividend AchieversTM Portfolio | 562,987 | (4,301 | ) | 11,400,851 | (16,367,686 | ) | (2,404,217 | ) | 140,192,636 | 133,380,270 | |||||||||||||||||||||
Financial Preferred Portfolio(1) | — | (16,695 | ) | 132,364,126 | (41,375,677 | ) | — | 1,282,095,262 | 1,373,067,016 | ||||||||||||||||||||||
High Yield Equity Dividend AchieversTM Portfolio | — | (5,951 | ) | 14,171,761 | (141,087,479 | ) | (3,828,455 | ) | 258,174,196 | 127,424,072 | |||||||||||||||||||||
International Dividend AchieversTM Portfolio | 1,902,183 | (12,243 | ) | 28,165,754 | (207,367,956 | ) | (15,265,251 | ) | 620,360,201 | 427,782,688 |
* Capital losses incurred after October 31 ("Post-October losses") within the taxable year are deemed to arise on the first business day of each Fund's next taxable year.
(1) Tax year-end is October 31.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Funds to utilize. The ability to utilize capital loss carryforward in the future may be limited under Internal Revenue Code rules and related regulations based on the results of future transactions.
The following Funds have capital loss carryforward amounts as of April 30, 2010, which expire on April 30 of each year listed below:
2014 | 2015 | 2016 | 2017 | 2018 | Total** | ||||||||||||||||||||||
Buyback AchieversTM Portfolio | $ | — | $ | 178,870 | $ | 9,098,882 | $ | 800,254 | $ | 12,142,749 | $ | 22,220,755 | |||||||||||||||
Dividend AchieversTM Portfolio | 7,896 | — | 50,943 | 1,716,151 | 14,592,696 | 16,367,686 | |||||||||||||||||||||
Financial Preferred Portfolio(1) | — | 2,445,445 | 29,895,674 | 9,034,558 | — | 41,375,677 | |||||||||||||||||||||
High Yield Equity Dividend AchieversTM Portfolio | 2,613,033 | 7,009,598 | 5,162,362 | 81,487,358 | 44,815,128 | 141,087,479 | |||||||||||||||||||||
International Dividend AchieversTM Portfolio | 183,478 | 221,461 | 1,975,339 | 59,472,841 | 145,514,837 | 207,367,956 |
** Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code.
(1) Tax year-end is October 31.
43
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
Note 7. Investment Transactions
For the fiscal year ended April 30, 2010, the cost of securities purchased and proceeds from sales of securities, excluding short-term securities, money market funds and in-kind transactions, were as follows:
Purchases | Sales | ||||||||||
Buyback AchieversTM Portfolio | $ | 7,752,309 | $ | 8,054,664 | |||||||
Dividend AchieversTM Portfolio | 21,836,839 | 18,481,607 | |||||||||
Financial Preferred Portfolio | 311,117,899 | 325,725,421 | |||||||||
High Yield Equity Dividend AchieversTM Portfolio | 60,148,547 | 64,403,223 | |||||||||
International Dividend AchieversTM Portfolio | 226,948,097 | 232,082,372 |
For the fiscal year ended April 30, 2010, in-kind transactions associated with creations and redemptions were as follows:
Securities Received | Securities Delivered | ||||||||||
Buyback AchieversTM Portfolio | $ | 26,314,632 | $ | 26,397,048 | |||||||
Dividend AchieversTM Portfolio | 51,172,327 | 30,665,903 | |||||||||
Financial Preferred Portfolio | 656,225,170 | 128,279,735 | |||||||||
High Yield Equity Dividend AchieversTM Portfolio | 69,667,529 | 58,570,136 | |||||||||
International Dividend AchieversTM Portfolio | 175,636,818 | 111,129,885 |
Gains and (losses) on in-kind transactions are generally not considered taxable gains/(losses) for Federal income tax purposes.
At April 30, 2010 the aggregate cost and the net unrealized appreciation of investments for tax purposes were as follows:
Cost | Net Unrealized Appreciation | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | ||||||||||||||||
Buyback AchieversTM Portfolio | $ | 34,741,762 | $ | 3,315,410 | $ | 4,141,092 | $ | (825,682 | ) | ||||||||||
Dividend AchieversTM Portfolio | 121,972,221 | 11,400,851 | 13,082,930 | (1,682,079 | ) | ||||||||||||||
Financial Preferred Portfolio(1) | 1,243,644,389 | 132,364,126 | 142,116,076 | (9,751,950 | ) | ||||||||||||||
High Yield Equity Dividend AchieversTM Portfolio | 113,674,248 | 14,171,761 | 14,677,256 | (505,495 | ) | ||||||||||||||
International Dividend AchieversTM Portfolio | 399,121,006 | 28,165,754 | 36,554,277 | (8,388,523 | ) |
(1) Tax year-end is October 31.
Note 8. Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of investment activity, on April 30, 2010, amounts were reclassified between undistributed net investment income (loss), undistributed net realized gain (loss)
44
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
and Shares of beneficial interest. These reclassifications had no effect on the net assets of each Fund. For the fiscal year ended April 30, 2010, the reclassifications were as follows:
Undistributed Net Investment Income (Loss) | Undistributed Net Realized Gain (Loss) | Shares of Beneficial Interest | |||||||||||||
Buyback AchieversTM Portfolio | $ | (6,239 | ) | $ | (6,730,417 | ) | $ | 6,736,656 | |||||||
Dividend AchieversTM Portfolio | (98,373 | ) | 381,358 | (282,985 | ) | ||||||||||
Financial Preferred Portfolio(1) | 5,736,412 | (28,475,587 | ) | 22,739,175 | |||||||||||
High Yield Equity Dividend AchieversTM Portfolio | 343,706 | (13,870,427 | ) | 13,526,721 | |||||||||||
International Dividend AchieversTM Portfolio | 1,347,031 | (27,999,595 | ) | 26,652,564 |
(1) Tax year-end is October 31.
Note 9. Trustees' Fees
The Funds compensate each Trustee who is not an employee of the Adviser or its affiliates. The "Interested" Trustees of the Trust do not receive any Trustees' fees.
The Trust has adopted a deferred compensation plan (the "Plan"). Under the Plan, a Trustee who is not an "interested person" (as defined in the 1940 Act) (an "Independent Trustee") and has executed a Deferred Fee Agreement (a "Participating Trustee") may defer receipt of all or a portion of his compensation ("Deferral Fees"). Such Deferral Fees are deemed to be invested in selected PowerShares Funds. The Deferral Fees payable to the Participating Trustee are valued as of the date such Deferral Fees would have been paid to the Participating Trustee. The value increases with contributions or with increases in the value of the Shares selected, and the value decreases with distributions or with declines in the value of the Shares selected.
Note 10. Capital
Shares are created and redeemed by the Trust only in Creation Unit size aggregations of 50,000 Shares. Only Authorized Participants are permitted to purchase or redeem Creation Units from the Funds. Such transactions are generally permitted on an in-kind basis, with a balancing cash component to equate the transaction to the NAV per Share of each Fund of the Trust on the transaction date. Cash may be substituted equivalent to the value of certain securities generally when they are not available in sufficient quantity for delivery, not eligible for trading by the Authorized Participant or as a result of other market circumstances.
Note 11. Indemnifications
Under the Trust's organizational documents, its officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. Each Independent Trustee is also indemnified against certain liabilities arising out of the performance of his duties to the Trust pursuant to an Indemnification Agreement between the Independent Trustee and the Trust. Additionally, in the normal course of business, the Trust enters into contracts with service providers that contain general indemnification clauses. The Trust's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred. However, based on experience, the Trust believes the risk of loss to be remote.
45
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of PowerShares Exchange-Traded Fund Trust:
In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of each of the portfolios indicated in Note 1 of the financial statements (each a portfolio of PowerShares Exchange-Traded Fund Trust, hereafter referred to as the "Trust") at April 30, 2010, and the results of each of their operations, the changes in each of their net assets, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Trust's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at April 30, 2010 by correspondence with the custodian and brokers, and the application of alternative auditing procedures where securities purchased had not been received, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
New York, New York
June 28, 2010
46
Tax Information
Form 1099-DIV, Form 1042-S and other year-end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisors.
The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state's requirement.
Each Fund designates the following amounts or, if subsequently determined to be different the maximum amount allowable for its fiscal year ended April 30, 2010:
Federal Income Tax Information
Qualified Dividend Income* | Corporate Dividends Received Deduction* | ||||||||||
Buyback AchieversTM Portfolio | 100 | % | 100 | % | |||||||
Dividend AchieversTM Portfolio | 100 | % | 100 | % | |||||||
Financial Preferred Portfolio(1) | 100 | % | 92 | % | |||||||
High Yield Equity Dividend AchieversTM Portfolio | 100 | % | 100 | % | |||||||
International Dividend AchieversTM Portfolio | 100 | % | 0 | % |
The Fund intends to elect to pass through to shareholders the credit for taxes paid to foreign countries. The gross foreign source income and foreign taxes paid are as follows:
Foreign Source Income | Foreign Taxes | ||||||||||
International Dividend AchieversTM Portfolio | $ | 12,771,211 | $ | 1,083,766 |
* The above percentages are based on ordinary income dividends paid to shareholders during the Fund's fiscal year.
(1) Tax year-end is October 31.
47
Proxy Results
A Special Meeting of Shareholders was held on March 22, 2010 to elect seven individuals to the Board of Trustees of PowerShares Exchange-Traded Fund Trust.
The results of the voting on the above matter were as follows:
Trustees | Votes For | Withheld/ Abstentions* | |||||||||
Ronn R. Bagge | 426,624,761 | 8,241,402 | |||||||||
Todd J. Barre | 426,876,044 | 7,990,119 | |||||||||
H. Bruce Bond | 426,681,223 | 8,184,940 | |||||||||
Kevin M. Carome | 425,386,415 | 9,479,748 | |||||||||
Marc M. Kole | 426,529,715 | 8,336,448 | |||||||||
Philip M. Nussbaum | 426,531,618 | 8,334,545 | |||||||||
Donald H. Wilson | 426,691,769 | 8,174,394 |
* Includes Non-Votes.
48
Trustees and Officers
The Independent Trustees, the Trustees who are affiliated with the Adviser (the "Interested Trustees") and the executive officers of the Trust, their term of office and length of time served, their principal business occupations during at least the past five years, the number of portfolios in the Fund Complex overseen by each Trustee and the other directorships, if any, held by a Trustee, are shown below.
The Trustees and officers information is current as of April 30, 2010.
Name, Address and Age of Independent Trustees | Position(s) Held with Trust | Term of Office and Length of Time Served* | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Independent Trustees | Other Directorships Held by Independent Trustees | ||||||||||||||||||
Ronn R. Bagge (52) YQA Capital Management LLC 1755 S. Naperville Rd., Suite 100 Wheaton, IL 60187 | Trustee | Since 2003 | Founder and Principal, YQA Capital Management LLC (1998-Present); formerly Owner/CEO of Electronic Dynamic Balancing Co., Inc. (high-speed rotating equipment service provider) | 111 | None | ||||||||||||||||||
Todd J. Barre (52) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Trustee | Since 2010 | Vice President and Senior Investment Strategist (2001-2008), Director of Open Architecture and Trading (2007-2008), Head of Fundamental Research (2004-2007) and Vice President and Senior Fixed Income Strategist (1994-2001), BMO Financial Group/Harris Private Bank | 111 | None | ||||||||||||||||||
* This is the date the Trustee began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected.
** Fund Complex includes all open-end funds (including all of their portfolios) advised by the Adviser. At April 30, 2010, the Fund Complex consisted of the Trust's 62 portfolios and three other exchange-traded fund trusts with 49 portfolios advised by the Adviser.
49
Trustees and Officers (Continued)
Name, Address and Age of Independent Trustees | Position(s) Held with Trust | Term of Office and Length of Time Served* | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Independent Trustees | Other Directorships Held by Independent Trustees | ||||||||||||||||||
Marc M. Kole (49) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Trustee | Since 2006 | Chief Financial Officer, Hope Network (social services) (2008-Present); formerly Assistant Vice President and Controller, Priority Health (health insurance) (2005-2008); Senior Vice President of Finance, United Healthcare (2004-2005); Senior Vice President of Finance, Oxford Health Plans (2000-2004) | 111 | None | ||||||||||||||||||
Philip M. Nussbaum (48) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Trustee | Since 2003 | Chairman, Performance Trust Capital Partners (formerly Betzold, Berg, Nussbaum & Heitman, Inc.) (2004-Present); formerly Managing Director, Communication Institute (2002-2003); Executive Vice President of Finance, Betzold, Berg, Nussbaum & Heitman, Inc. (1994-1999) | 111 | None | ||||||||||||||||||
* This is the date the Trustee began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected.
** Fund Complex includes all open-end funds (including all of their portfolios) advised by the Adviser. At April 30, 2010, the Fund Complex consisted of the Trust's 62 portfolios and three other exchange-traded fund trusts with 49 portfolios advised by the Adviser.
50
Trustees and Officers (Continued)
Name, Address and Age of Independent Trustees | Position(s) Held with Trust | Term of Office and Length of Time Served* | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Independent Trustees | Other Directorships Held by Independent Trustees | ||||||||||||||||||
Donald H. Wilson (50) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Trustee | Since 2006 | Chairman and Chief Executive Officer, Stone Pillar Advisers, Ltd. (2010-Present); formerly, Chief Operating Officer, AMCORE Financial, Inc. (bank holding company) (2007-2009); Executive Vice President and Chief Financial Officer, AMCORE Financial, Inc. (2006-2007); Senior Vice President and Treasurer, Marshall & Ilsley Corp. (bank holding company) (1995-2006) | 111 | None | ||||||||||||||||||
* This is the date the Trustee began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected.
** Fund Complex includes all open-end funds (including all of their portfolios) advised by the Adviser. At April 30, 2010, the Fund Complex consisted of the Trust's 62 portfolios and three other exchange-traded fund trusts with 49 portfolios advised by the Adviser.
51
Trustees and Officers (Continued)
Name, Address and Age of Interested Trustees | Position(s) Held with Trust | Term of Office and Length of Time Served* | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Interested Trustees | Other Directorships Held by Interested Trustees | ||||||||||||||||||
H. Bruce Bond (46) Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Chairman of the Board and Trustee | Since 2003 | Chairman, Invesco Power-Shares Capital Management LLC (2009-Present); formerly, Managing Director, Invesco PowerShares Capital Management LLC (2002-2009); Manager, Nuveen Investments (1998-2002) | 111 | None | ||||||||||||||||||
Kevin M, Carome (53) Invesco Ltd. Two Peachtree Pointe 1555 Peachtree St., N.E., Suite 1800 Atlanta, GA 30309 | Trustee | Since 2010 | Senior Managing Director and General Counsel, Invesco Ltd. (2006-Present); formerly, Senior Vice President and General Counsel, Invesco Advisors, Inc. (2003-2005); Senior Vice President and General Counsel, Liberty Financial Companies, Inc. (2000-2001); General Counsel of certain investment management subsidiaries of Liberty Financial Companies, Inc. (1998-2000); Associate General Counsel, Liberty Financial Companies, Inc. (1993-1998); Associate, Ropes & Gray LLP | 111 | None | ||||||||||||||||||
* This is the date the Interested Trustee began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected. Each Officer serves an indefinite term, until his successor is elected.
** Fund Complex includes all open-end funds (including all of their portfolios) advised by the Adviser. At April 30, 2010, the Fund Complex consisted of the Trust's 62 portfolios and three other exchange-traded fund trusts with 49 portfolios advised by the Adviser.
52
Trustees and Officers (Continued)
Name, Address, and Age of Executive Officer | Position(s) Held with Trust | Length of Time Served* | Principal Occupation(s) During Past 5 Years | ||||||||||||
Andrew Schlossberg (35) Invesco Management Group, Inc. 11 Greenway Plaza Suite 100 Houston, Texas 77046 | President | Since 2009 | Managing Director, U.S. head of business strategy and chief marketing officer for Invesco Ltd. in the United States (2008-Present); formerly, Mr. Schlossberg served in multiple roles within Invesco, including head of corporate development, as well as global leadership roles in strategy and product development in the company's North American Institutional and Retirement divisions (2002-2007) | ||||||||||||
Bruce T. Duncan (55) Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Treasurer and Secretary | Treasurer since 2006; Secretary since 2008 | Senior Vice President of Finance, Invesco PowerShares Capital Management LLC (2005-Present); formerly Private Practice Attorney (2000-2005); Vice President of Investor Relations, The ServiceMaster Company (1994-2000); Vice President of Taxes, The ServiceMaster Company (1990-2000) | ||||||||||||
Benjamin Fulton (48) Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Vice President | Since 2009 | Executive Vice President — Global Product Development, Invesco PowerShares Capital Management LLC (2005-Present); formerly, principal of Clermont Consulting, a consulting firm focused on the creation and development of retail investment products (2003-2005); President and a founding partner of Claymore Securities, a financial services firm in the Chicago land area (2001-2003); Managing Director of Structured Investments at Nuveen Investments (1998-2001) | ||||||||||||
Peter Hubbard (28) Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Vice President | Since 2009 | Vice President and Director of Portfolio Management — Invesco PowerShares Capital Management LLC (2008-Present); formerly, Research Analyst, Invesco PowerShares Capital Management LLC (2005-2007); Research Analyst and Trader, Ritchie Capital, a hedge fund operator (2003-2005) | ||||||||||||
* This is the period for which the Officers began serving the Trust. Each Officer serves a one year term, until his successor is elected.
53
Trustees and Officers (Continued)
Name, Address, and Age of Executive Officer | Position(s) Held with Trust | Length of Time Served* | Principal Occupation(s) During Past 5 Years | ||||||||||||
David Warren (52) Invesco Trimark Ltd. 5140 Yonge Street Suite 900 Toronto, Ontario M2N 6X7 | Vice President | Since 2009 | Director, Executive Vice President and Chief Financial Officer, Invesco Trimark Ltd. and Chief Administrative Officer, North American Retail, Invesco Ltd (2007-Present); formerly, Director, Executive Vice President and Chief Financial Officer, Invesco Trimark Ltd. (2000-2006) | ||||||||||||
Todd Spillane (51) Invesco PowerShares Capital Management LLC 11 Greenway Plaza Suite 100 Houston, Texas 77046 | Chief Compliance Officer | Since 2010 | Senior Vice President, Invesco Management Group, Inc.; Chief Compliance Officer, INVESCO Private Capital Investments, Inc. (holding company), Invesco Private Capital, Inc. (registered investment adviser) and Invesco Senior Secured Management, Inc. (registered investment adviser); Chief Compliance Officer and Senior Vice President, Invesco Advisers, Inc. (formerly Invesco Institutional, (N.A.), Inc. — registered investment adviser) and Vice President, Invesco Distributors, Inc. and Invesco Investment Services, Inc.; formerly: Chief Compliance Officer, Invesco Global Asset Management (N.A.), Inc. — registered investment adviser) and Invesco Advisers, Inc. (formerly Invesco Institutional (N.A.), Inc.) (registered investment adviser); Senior Vice President and Chief Compliance Officer, Invesco Advisors, Inc., Invesco Capital Management, Inc. and Invesco Private Asset Management, Inc.; Vice President, Invesco Capital Management, Inc. and F und Management Company | ||||||||||||
Availability of Additional Information About the Trustees
The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request at 800.337.4246.
* This is the period for which the Officers began serving the Trust. Each Officer serves a one year term, until his successor is elected.
54
Board Considerations Regarding Continuation of Investment Advisory Agreement
At a meeting held on April 15, 2010, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust (the "Trust"), including the Independent Trustees, unanimously approved the continuation of the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the "Adviser") and the Trust for the following 57 series (each, a "Fund" and collectively, the "Funds"):
PowerShares Dynamic Market Portfolio
PowerShares Dynamic OTC Portfolio
PowerShares Golden Dragon Halter USX China Portfolio
PowerShares High Yield Equity Dividend AchieversTM Portfolio
PowerShares WilderHill Clean Energy Portfolio
PowerShares Dynamic Large Cap Growth Portfolio
PowerShares Dynamic Large Cap Value Portfolio
PowerShares Dynamic Mid Cap Growth Portfolio
PowerShares Dynamic Mid Cap Value Portfolio
PowerShares Dynamic Small Cap Growth Portfolio
PowerShares Dynamic Small Cap Value Portfolio
PowerShares Dynamic Biotechnology & Genome Portfolio
PowerShares Dynamic Food & Beverage Portfolio
PowerShares Dynamic Leisure and Entertainment Portfolio
PowerShares Dynamic Media Portfolio
PowerShares Dynamic Networking Portfolio
PowerShares Dynamic Pharmaceuticals Portfolio
PowerShares Dynamic Semiconductors Portfolio
PowerShares Dynamic Software Portfolio
PowerShares Zacks Micro Cap Portfolio
PowerShares Aerospace & Defense Portfolio
PowerShares Dynamic Telecommunications & Wireless Portfolio
PowerShares Value Line Timeliness Select Portfolio
PowerShares Dividend AchieversTM Portfolio
PowerShares International Dividend AchieversTM Portfolio
PowerShares Zacks Small Cap Portfolio
PowerShares Dynamic Building and Construction Portfolio
PowerShares Dynamic Energy Exploration and Production Portfolio
PowerShares Dynamic Insurance Portfolio
PowerShares Dynamic Oil and Gas Services Portfolio
PowerShares Dynamic Retail Portfolio
PowerShares Dynamic Utilities Portfolio
PowerShares Lux Nanotech Portfolio
PowerShares FTSE RAFI US 1000 Portfolio
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio
PowerShares Water Resources Portfolio
PowerShares Dynamic Energy Sector Portfolio
PowerShares Dynamic Financial Sector Portfolio
PowerShares Dynamic Healthcare Sector Portfolio
PowerShares Dynamic Industrials Sector Portfolio
PowerShares Dynamic Large Cap Portfolio
PowerShares Dynamic MagniQuant Portfolio
PowerShares Dynamic Mid Cap Portfolio
PowerShares Dynamic Small Cap Portfolio
PowerShares Dynamic Technology Sector Portfolio
PowerShares Buyback AchieversTM Portfolio
PowerShares Cleantech Portfolio
PowerShares Dynamic Banking Portfolio
PowerShares Dynamic Basic Materials Sector Portfolio
PowerShares Dynamic Consumer Discretionary Sector Portfolio
PowerShares Dynamic Consumer Staples Sector Portfolio
PowerShares Dynamic Healthcare Services Portfolio
PowerShares Financial Preferred Portfolio
PowerShares Global Listed Private Equity Portfolio
PowerShares DWA Technical Leaders Portfolio
PowerShares Value Line Industry Rotation Portfolio
PowerShares WilderHill Progressive Energy Portfolio
55
Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)
The Trustees reviewed information from the Adviser describing: (i) the nature, extent and quality of services provided, (ii) the investment performance of the Funds and the Adviser, (iii) the costs of services provided and estimated profits realized by the Adviser, (iv) the extent to which economies of scale are realized as the Funds grow, (v) whether fee levels reflect any possible economies of scale for the benefit of Fund shareholders, (vi) comparisons of services rendered and amounts paid to other registered investment companies and (vii) any benefits realized by the Adviser from its relationship with each Fund. Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the continuation of the Investment Advisory Agreement for each Fund. No single factor was determinative in the Board's analysis.
Nature, Extent and Quality of Services. In evaluating the nature, extent and quality of the Adviser's services, the Trustees reviewed information concerning the functions performed by the Adviser for the Funds, information describing the Adviser's current organization and projected staffing, including operations assistance provided by the Adviser's parent organization, Invesco Ltd., and the background and experience of the persons responsible for the day-to-day management of the Funds. The Trustees reviewed matters related to the Adviser's execution of portfolio transactions on behalf of the Funds. The Trustees also reviewed information on the performance of the Funds and the performance of their underlying indices through December 31, 2009. The Trustees also reviewed reports on the correlation and tracking error between the underlying index and each Fund's performance, including a report of Ibbotson Associates, a consultant to the Independent Trustees, that analyzed the reasons for tracking error for certain PowerShares funds, as well as the Adviser's analysis of the tracking error between each Fund and its underlying index. The Trustees noted that each Fund's correlation was within the targeted range set forth in the Trust's registration statement and that, for each Fund other than PowerShares Global Listed Private Equity Portfolio, the tracking error was within the targeted range set forth in the Trust's registration statement. The Trustees reviewed the reasons for PowerShares Global Listed Private Equity Portfolio's tracking error. The Trustees concluded that each Fund was correlated to its underlying index and that the tracking error for each Fund was within an acceptable range given that Fund's particular circumstances.
The Trustees also considered the services provided by the Adviser in its oversight of the Funds' administrator, custodian and transfer agent. They noted the significant amount of time and effort that had been devoted to this oversight function.
Based on their review, the Trustees concluded that the nature, extent and quality of services provided by the Adviser to the Funds under the Investment Advisory Agreement were appropriate and reasonable.
Fees, Expenses and Profitability. The Trustees reviewed and discussed the information provided by the Adviser on each Fund's expense ratio and advisory fee, as compared to information compiled by the Adviser from Lipper Inc. databases on the expense ratios of comparable exchange-traded funds ("ETFs"), open-end (non-ETF) index funds and open-end actively-managed funds. The Trustees noted that the annual advisory fee charged to each Fund is:
• 0.50% of the Fund's average net assets, for each Fund other than PowerShares High Yield Equity Dividend Achievers(TM) Portfolio, PowerShares Dividend Achievers(TM) Portfolio, PowerShares International Dividend Achievers(TM) Portfolio, PowerShares FTSE RAFI US 1000 Portfolio and PowerShares FTSE RAFI US 1500 Small-Mid Portfolio;
56
Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)
• 0.40% of the Fund's average net assets, for each of PowerShares High Yield Equity Dividend Achievers(TM) Portfolio, PowerShares Dividend Achievers(TM) Portfolio and PowerShares International Dividend Achievers(TM) Portfolio; and
• 0.29% of the Fund's average net assets, for each of PowerShares FTSE RAFI US 1000 Portfolio and PowerShares FTSE RAFI US 1500 Small-Mid Portfolio.
The Trustees also noted that the Adviser has agreed to waive a portion of its advisory fee and/or pay expenses (an "Expense Cap") to the extent necessary to prevent the annual operating expenses of each Fund from exceeding the percentage of that Fund's average daily net assets, at least until August 31, 2011, as set forth below:
• 0.60%, excluding interest expenses, brokerage commissions and other trading expenses, taxes and extraordinary expenses, for each of PowerShares Dynamic OTC Portfolio and PowerShares Dynamic Market Portfolio;
• 0.50%, excluding interest expenses, licensing fees, offering costs, brokerage commissions and other trading expenses, taxes and extraordinary expenses, for each of PowerShares High Yield Equity Dividend Achievers(TM) Portfolio, PowerShares Dividend Achievers(TM) Portfolio and PowerShares International Dividend Achievers(TM) Portfolio;
• 0.39%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes and extraordinary expenses, for each of PowerShares FTSE RAFI US 1000 Portfolio and PowerShares FTSE RAFI US 1500 Small-Mid Portfolio; and
• 0.60%, excluding interest expenses, licensing fees, offering costs, brokerage commissions and other trading expenses, taxes and extraordinary expenses, for each other Fund.
The Trustees noted that the Adviser represented that it does not provide investment advisory services to any clients other than the Funds and other ETFs overseen by the Board. The Trustees noted that each Fund's advisory fee was:
• higher than the median advisory fee of its ETF peer funds (except for the advisory fee of each of PowerShares Financial Preferred Portfolio, PowerShares Golden Dragon Halter USX China Portfolio and PowerShares International Dividend Achievers(TM) Portfolio, which was lower than the median advisory fee of its ETF peer funds); and
• higher than the median advisory fee of its open-end index peer funds (except for the advisory fee of each of PowerShares DWA Technical Leaders Portfolio, PowerShares Dynamic Banking Portfolio, PowerShares Dynamic Financial Sector Portfolio, PowerShares Dynamic Insurance Portfolio, PowerShares Dynamic Mid Cap Growth Portfolio, PowerShares Dynamic Mid Cap Value Portfolio, PowerShares Dynamic OTC Portfolio, PowerShares Financial Preferred Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Golden Dragon Halter USX China Portfolio, PowerShares International Dividend Achievers(TM) Portfolio, PowerShares Value Line Industry Rotation Portfolio and PowerShares Value Line Timeliness Select Portfolio, which was equal to or lower than the median advisory fee of its open-end index peer funds, and there was no comparable data for PowerShares Dynamic Basic Materials Sector Portfolio); but
57
Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)
• lower than the median advisory fee of its open-end actively-managed peer funds.
The Trustees determined that the advisory fees were reasonable, noting the complexity of the indices, which generally require more frequent rebalancing of the portfolios, the distinguishing factors of the Funds, and the higher administrative, operational and management oversight costs for the Adviser. With respect to the Funds' expense ratios, the Trustees noted that the net expense ratio for each Fund was:
• higher than the median expense ratio of its ETF peer funds (except for the net expense ratio of each of PowerShares Dynamic OTC Portfolio, PowerShares FTSE RAFI US 1000 Portfolio and PowerShares International Dividend AchieversTM Portfolio, which was less than the median expense ratio of its ETF peer funds); and
• higher than the median expense ratio of its open-end index peer funds (except for the net expense ratio of each of PowerShares Dynamic Banking Portfolio, PowerShares Dynamic Financial Sector Portfolio, PowerShares Dynamic Insurance Portfolio, PowerShares Dynamic Mid Cap Growth Portfolio, PowerShares Dynamic Mid Cap Value Portfolio, PowerShares Dynamic Oil and Gas Services Portfolio, PowerShares Dynamic Small Cap Growth Portfolio, PowerShares Dynamic Telecommunications & Wireless Portfolio, PowerShares Dynamic Utilities Portfolio, PowerShares Financial Preferred Portfolio and PowerShares Global Listed Private Equity Portfolio, which was lower than the median expense ratio of its open-end index peer funds, and there was no comparable data for PowerShares Dynamic Basic Materials Sector Portfolio); but
• lower than the median expense ratio of its open-end actively-managed peer funds.
The Trustees noted that a significant component of the non-advisory fee expenses was the license fees paid by the Funds.
The Board concluded that the advisory fee and expense ratio of each Fund (giving effect to the Fund's Expense Cap) were reasonable and appropriate in light of the services provided.
In conjunction with their review of fees, the Trustees also considered information provided by the Adviser on the revenues received by the Adviser under the Investment Advisory Agreement for each Fund, as well as the fees waived and expenses reimbursed by the Adviser for the Funds. The Trustees reviewed information provided by the Adviser on its profitability as well as any profits or losses realized by the Adviser from its relationship to each Fund. The Trustees concluded that the estimated profitability to the Adviser of the advisory services provided to any of the Funds was not unreasonable.
Economies of Scale and Whether Fee Levels Reflect These Economies of Scale. The Trustees reviewed the information provided by the Adviser as to the extent to which economies of scale are realized as each Fund grows and whether fee levels reflect economies of scale for the benefit of shareholders. The Trustees reviewed each Fund's asset size, expense ratio and expense limitation agreed to by the Adviser. The Trustees noted that, for Funds whose expenses are higher than their respective Expense Caps, any reduction in that Fund's expenses would be enjoyed by the Adviser, but that Fund shareholders benefit from the lower expense ratio as a result of the Fund's Expense Cap. The Trustees also noted that the Excess Expense Agreement with the Trust provides that the Adviser is entitled to be reimbursed by each Fund, other than PowerShares Dynamic Market Portf olio and PowerShares Dynamic OTC Portfolio, for fees waived or expenses absorbed pursuant to the Expense Cap for a period of three years from the date
58
Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)
the fee or expense was incurred, provided that no reimbursement would be made that would result in a Fund exceeding its Expense Cap. The Trustees considered whether the advisory fee rate for each Fund was reasonable in relation to the asset size of that Fund, and concluded that the flat advisory fee was reasonable and appropriate, noting the Fund expenses the Adviser has borne as a result of the Expense Cap.
The Trustees noted that the Adviser had not identified any further benefits that it derived from its relationship with the Funds and had noted that it does not have any soft-dollar arrangements.
Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the continuation of the Investment Advisory Agreement for each Fund. No single factor was determinative in the Board's analysis.
59
This page intentionally left blank
PROXY VOTING POLICIES AND PROCEDURES
A description of the Funds' proxy voting policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available, without charge and upon request, by calling (800) 337-4246. This information is also available on the Securities and Exchange Commission's ("Commission") website at www.sec.gov.
Information regarding how the Funds voted proxies for portfolio securities, if applicable, during the most recent 12-month period ended June 30, is also available, without charge and upon request, by (i) calling (800) 337-4246; or (ii) accessing the Trust's Form N-PX on the Commission's website at www.sec.gov.
QUARTERLY PORTFOLIOS
The Funds file their complete schedules of portfolio holdings with the Commission for the first and third quarters of each fiscal year on Form N-Q. The Trust's Forms N-Q are available on the Commission's website at www.sec.gov. The Trust's Forms N-Q may also be reviewed and copied at the Commission's Public Reference Room in Washington, D.C.; information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330.
301 West Roosevelt Road
Wheaton, IL 60187
800.983.0903
www.invescopowershares.com
© 2009 Invesco PowerShares Capital Management LLC P-PS-AR-1
2010 Annual Report to Shareholders
April 30, 2010
PowerShares Dynamic Banking Portfolio
PowerShares Dynamic Biotechnology & Genome Portfolio
PowerShares Dynamic Building & Construction Portfolio
PowerShares Dynamic Energy Exploration & Production Portfolio
PowerShares Dynamic Food & Beverage Portfolio
PowerShares Dynamic Healthcare Services Portfolio
PowerShares Dynamic Insurance Portfolio
PowerShares Dynamic Leisure and Entertainment Portfolio
PowerShares Dynamic Media Portfolio
PowerShares Dynamic Networking Portfolio
PowerShares Dynamic Oil & Gas Services Portfolio
PowerShares Dynamic Pharmaceuticals Portfolio
PowerShares Dynamic Retail Portfolio
PowerShares Dynamic Semiconductors Portfolio
PowerShares Dynamic Software Portfolio
Table of Contents
The Market Environment | 2 | ||||||
Manager's Analysis | 4 | ||||||
Frequency Distribution of Discounts & Premiums | 34 | ||||||
Fees and Expenses | 36 | ||||||
Industry Portfolios | |||||||
Schedules of Investments | |||||||
PowerShares Dynamic Banking Portfolio | 38 | ||||||
PowerShares Dynamic Biotechnology & Genome Portfolio | 39 | ||||||
PowerShares Dynamic Building & Construction Portfolio | 40 | ||||||
PowerShares Dynamic Energy Exploration & Production Portfolio | 41 | ||||||
PowerShares Dynamic Food & Beverage Portfolio | 42 | ||||||
PowerShares Dynamic Healthcare Services Portfolio | 43 | ||||||
PowerShares Dynamic Insurance Portfolio | 44 | ||||||
PowerShares Dynamic Leisure and Entertainment Portfolio | 45 | ||||||
PowerShares Dynamic Media Portfolio | 46 | ||||||
PowerShares Dynamic Networking Portfolio | 47 | ||||||
PowerShares Dynamic Oil & Gas Services Portfolio | 48 | ||||||
PowerShares Dynamic Pharmaceuticals Portfolio | 49 | ||||||
PowerShares Dynamic Retail Portfolio | 50 | ||||||
PowerShares Dynamic Semiconductors Portfolio | 51 | ||||||
PowerShares Dynamic Software Portfolio | 52 | ||||||
Statements of Assets and Liabilities | 54 | ||||||
Statements of Operations | 56 | ||||||
Statements of Changes in Net Assets | 58 | ||||||
Financial Highlights | 64 | ||||||
Notes to Financial Statements | 72 | ||||||
Report of Independent Registered Public Accounting Firm | 86 | ||||||
Tax Information | 87 | ||||||
Proxy Results | 88 | ||||||
Trustees and Officers | 89 | ||||||
Board Considerations Regarding Continuation of Investment Advisory Agreement | 96 | ||||||
The Market Environment
For the fiscal year ended April 30, 2010 (the "reporting period"), the U.S. markets recouped more than their previous year's losses. With the government's bank support programs firmly in place, the U.S. economy rebounded from its worst recession since the 1920s and U.S. equity markets rallied accordingly during the same period with the following performance: S&P 500® Index returned 38.82%, Dow Jones Industrial Index returned 38.61% and NASDAQ-100® Index returned 44.44%. As a result of the tremendous government assistance provided to U.S. banks, insurers, and automotive companies, consumer discretionary and financial stocks surged the most out of the ten S&P 500® sectors. Despite the sharp rise in U.S. equity prices, almost $23 billion in outflows occurred during this timeframe (based on Investment Company Institute statistics) as investors re-allocated their assets to income-g enerating products.
Interest rates remained at historically low levels, which supported bond prices during the reporting period. With the exception of U.S. Treasuries, fixed income markets enjoyed unprecedented gains in both total returns and inflows over the reporting period. Despite a newfound aversion to equity risk, investors put the most money to work in the riskiest bond sectors. As a result, higher beta bond sectors performed the best during the reporting period. For example, the Bank of America Merrill Lynch (BAML) U.S. High Yield Master II Index returned 44.20%, while the BAML U.S. Corporate, Government & Mortgage Index (prev. Domestic Master) returned 7.84% during the reporting period. Municipal bonds benefited from low supply and the establishment of the Build America Bond (BAB) program. As a result, the BAML Municipal Master Index returned 9.73% and the BAML BAB Index returned 9.60%. According to ICI statistics, domestic bond funds grew at a record pace during the reporting period, experiencing $353.5 billion in taxable inflows and $68.5 billion in municipal bond inflows.
2
This page intentionally left blank
Manager's Analysis
PowerShares Dynamic Banking Portfolio (ticker: PJB)
The PowerShares Dynamic Banking Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Dynamic Banking IntellidexSM Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 17.91%. Over this same year, the Index returned 19.25%, while the S&P SuperComposite Commercial Banks Index returned 61.29%. The Fund benefited from positive performance in regional banks, diversified banks and thrifts & mortgage finance sub-industries. Fund performance was positive within each sub-industry in which it was invested.
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Super-Regional Banks-U.S. | 21.2 | ||||||
Commercial Banks-Central U.S. | 19.9 | ||||||
Commercial Banks-Eastern U.S. | 16.4 | ||||||
S&L/Thrifts-Eastern U.S. | 13.3 | ||||||
Commercial Banks-Southern U.S. | 11.5 | ||||||
S&L/Thrifts-Central U.S. | 7.6 | ||||||
Commercial Banks-Western U.S. | 5.5 | ||||||
Diversified Banking Institution | 4.5 | ||||||
Money Market Fund | 0.3 | ||||||
Other | (0.2 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Small-Cap Value | 40.9 | ||||||
Large-Cap Growth | 14.8 | ||||||
Small-Cap Growth | 13.1 | ||||||
Mid-Cap Value | 12.6 | ||||||
Large-Cap Value | 11.0 | ||||||
Mid-Cap Growth | 7.6 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
PNC Financial Services Group, Inc. | 5.6 | ||||||
Fifth Third Bancorp | 5.4 | ||||||
Wells Fargo & Co. | 5.4 | ||||||
M&T Bank Corp. | 5.0 | ||||||
TFS Financial Corp. | 4.9 | ||||||
U.S. Bancorp | 4.8 | ||||||
Commerce Bancshares, Inc. | 4.6 | ||||||
JPMorgan Chase & Co. | 4.5 | ||||||
S&T Bancorp, Inc. | 3.3 | ||||||
WesBanco, Inc. | 3.1 | ||||||
Total | 46.6 |
4
Manager's Analysis (Continued)
PowerShares Dynamic Banking Portfolio (ticker: PJB)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2010 | ||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg Ann†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
Dynamic Banking IntellidexSM Index | 19.25 | % | -12.31 | % | -11.67 | % | -35.63 | % | |||||||||||
S&P SuperComposite Commercial Banks Index | 61.29 | % | -16.09 | % | -13.14 | % | -39.63 | % | |||||||||||
Dow Jones U.S. Total Markets Bank Index | 52.53 | % | -23.81 | % | -19.91 | % | -54.86 | % | |||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | -1.13 | % | -3.99 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 17.91 | % | -13.29 | % | -12.65 | % | -38.12 | % | |||||||||||
Share Price Return | 18.21 | % | -13.30 | % | -12.65 | % | -38.11 | % |
Fund Inception: October 12, 2006
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.72%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.65% while the Fund's total gross operating expense ratio was 1.07%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P SuperComposite Commercial Banks Index, Dow Jones U.S. Total Markets Bank Index, and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 77, 50, and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
5
Manager's Analysis
PowerShares Dynamic Biotechnology & Genome Portfolio (ticker: PBE)
The PowerShares Dynamic Biotechnology & Genome Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Dynamic Biotechnology & Genome IntellidexSM Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 53.19%. Over this same year, the Index returned 55.14%, while the S&P SuperComposite Biotech Index returned 12.48%. The Fund benefited from positive performance in biotechnology, life sciences tools & services and pharmaceuticals sub-industries. The Fund suffered negative performance in health care equipment sub-industry. The Fund underperformed the Index, due to higher turnover levels in less liquid holdings, which led to increased tracking inaccuracy in the Fund.
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Biotechnology | 58.8 | ||||||
Pharmaceuticals | 19.6 | ||||||
Electronics | 8.3 | ||||||
Healthcare-Products | 7.8 | ||||||
Chemicals | 5.6 | ||||||
Money Market Fund | 0.0 | ||||||
Other | (0.1 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Small-Cap Growth | 52.3 | ||||||
Mid-Cap Growth | 35.1 | ||||||
Large-Cap Value | 8.9 | ||||||
Large-Cap Growth | 3.7 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
Sigma-Aldrich Corp. | 5.6 | ||||||
Waters Corp. | 5.4 | ||||||
Millipore Corp. | 5.0 | ||||||
Alexion Pharmaceuticals, Inc. | 5.0 | ||||||
Life Technologies Corp. | 4.8 | ||||||
Amgen, Inc. | 4.5 | ||||||
Biogen Idec, Inc. | 4.3 | ||||||
OSI Pharmaceuticals, Inc. | 3.9 | ||||||
Halozyme Therapeutics, Inc. | 3.8 | ||||||
Gilead Sciences, Inc. | 3.7 | ||||||
Total | 46.0 |
6
Manager's Analysis (Continued)
PowerShares Dynamic Biotechnology & Genome Portfolio (ticker: PBE)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2010 | ||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg Ann†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
Dynamic Biotechnology & Genome IntellidexSM Index | 55.14 | % | 1.49 | % | 6.66 | % | 36.76 | % | |||||||||||
S&P SuperComposite Biotech Index | 12.48 | % | -0.66 | % | 5.18 | % | 27.63 | % | |||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | 2.03 | % | 10.20 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 53.19 | % | 0.79 | % | 6.27 | % | 34.34 | % | |||||||||||
Share Price Return | 53.63 | % | 0.81 | % | 6.27 | % | 34.32 | % |
Fund Inception: June 23, 2005
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses during previous fiscal periods, absent which, performance during those fiscal periods would have been lower. While the Adviser has contractually agreed to waive and/or pay certain Fund expenses through August 31, 2011, the Fund is currently subject to recapture, which may result in an increased expense ratio. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.62%. In the Financial Highlights section of this Shareholder Report, the Fund's total net operating expense ratio was determined to be 0.63% while the Fund' s total gross operating expense ratio was 0.61%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P SuperComposite Biotech Index and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 14 and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
7
Manager's Analysis
PowerShares Dynamic Building & Construction Portfolio (ticker: PKB)
The PowerShares Dynamic Building & Construction Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Dynamic Building & Construction IntellidexSM Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 27.65%. Over this same year, the Index returned 28.60%, while the S&P SuperComposite Construction & Engineering Index returned 22.06%. The Fund benefited from positive performance in building products, homebuilding and home improvement retail sub-industries. The Fund suffered negative performance in diversified chemicals, leisure products and environmental & facilities services sub-industries.
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Engineering & Construction | 29.8 | ||||||
Building Materials | 24.7 | ||||||
Home Builders | 12.6 | ||||||
Retail | 12.2 | ||||||
Machinery-Diversified | 4.2 | ||||||
Office Furnishings | 3.5 | ||||||
Real Estate | 2.9 | ||||||
Metal Fabricate/Hardware | 2.7 | ||||||
Environmental Control | 2.6 | ||||||
Miscellaneous Manufacturing | 2.6 | ||||||
Commercial Services | 2.2 | ||||||
Money Market Fund | 0.1 | ||||||
Other | (0.1 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Small-Cap Growth | 30.1 | ||||||
Small-Cap Value | 25.1 | ||||||
Mid-Cap Value | 19.5 | ||||||
Mid-Cap Growth | 15.9 | ||||||
Large-Cap Growth | 9.4 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Owens Corning | 6.1 | ||||||
Jacobs Engineering Group, Inc. | 5.2 | ||||||
Fluor Corp. | 5.1 | ||||||
D.R. Horton, Inc. | 4.9 | ||||||
Lowe's Cos., Inc. | 4.8 | ||||||
Home Depot, Inc. (The) | 4.7 | ||||||
URS Corp. | 4.6 | ||||||
NVR, Inc. | 4.2 | ||||||
NACCO Industries, Inc. | 4.2 | ||||||
Interface, Inc. | 3.5 | ||||||
Total | 47.3 |
8
Manager's Analysis (Continued)
PowerShares Dynamic Building & Construction Portfolio (ticker: PKB)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2010 | ||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg Ann†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
Dynamic Building & Construction IntellidexSM Index | 28.60 | % | -8.72 | % | -1.03 | % | -4.55 | % | |||||||||||
S&P SuperComposite Construction & Engineering Index | 22.06 | % | 0.13 | % | 10.23 | % | 55.03 | % | |||||||||||
S&P SuperComposite Homebuilders Index | 26.29 | % | -18.18 | % | -18.24 | % | -59.59 | % | |||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | 1.76 | % | 8.17 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 27.65 | % | -9.26 | % | -1.92 | % | -8.38 | % | |||||||||||
Share Price Return | 27.42 | % | -9.26 | % | -1.94 | % | -8.44 | % |
Fund Inception: October 26, 2005
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 1.06%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.63% while the Fund's total gross operating expense ratio was 0.76%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P SuperComposite Construction & Engineering Index, S&P Super Composite Homebuilders Index, and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 9, 13, and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
9
Manager's Analysis
PowerShares Dynamic Energy Exploration & Production Portfolio (ticker: PXE)
The PowerShares Dynamic Energy Exploration & Production Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Dynamic Energy Exploration & Production IntellidexSM Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 40.87%. Over this same year, the Index returned 41.87%, while the S&P SuperComposite Oil & Gas Exploration & Production Index returned 45.19%. The Fund benefited from positive performance in oil & gas exploration & production, integrated oil & gas and gas utilities sub-industries. The Fund suffered negative performance in oil & gas refining & marketing sub-industry.
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Oil Companies-Exploration & Production | 71.8 | ||||||
Oil Companies-Integrated | 22.9 | ||||||
Gas-Distribution | 5.2 | ||||||
Money Market Fund | 0.1 | ||||||
Other | 0.0 |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Large-Cap Value | 40.4 | ||||||
Mid-Cap Growth | 19.9 | ||||||
Small-Cap Value | 19.7 | ||||||
Mid-Cap Value | 13.7 | ||||||
Small-Cap Growth | 6.3 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
ConocoPhillips | 5.5 | ||||||
Chevron Corp. | 5.1 | ||||||
Occidental Petroleum Corp. | 5.0 | ||||||
Hess Corp. | 4.8 | ||||||
Exxon Mobil Corp. | 4.7 | ||||||
Apache Corp. | 4.4 | ||||||
Chesapeake Energy Corp. | 4.0 | ||||||
Anadarko Petroleum Corp. | 4.0 | ||||||
CNX Gas Corp. | 3.6 | ||||||
Pioneer Natural Resources Co. | 3.4 | ||||||
Total | 44.5 |
10
Manager's Analysis (Continued)
PowerShares Dynamic Energy Exploration & Production Portfolio (ticker: PXE)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2010 | ||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg Ann†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
Dynamic Energy Exploration & Production IntellidexSM Index | 41.87 | % | -3.65 | % | 4.13 | % | 20.03 | % | |||||||||||
S&P SuperComposite Oil & Gas Exploration & Production Index | 45.19 | % | 5.98 | % | 8.90 | % | 46.76 | % | |||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | 1.76 | % | 8.17 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 40.87 | % | -4.25 | % | 3.56 | % | 17.10 | % | |||||||||||
Share Price Return | 41.08 | % | -4.22 | % | 3.54 | % | 16.96 | % |
Fund Inception: October 26, 2005
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.69%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.63% while the Fund's total gross operating expense ratio was 0.76%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P SuperComposite Oil & Gas Exploration & Production Index and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 24 and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
11
Manager's Analysis
PowerShares Dynamic Food & Beverage Portfolio (ticker: PBJ)
The PowerShares Dynamic Food & Beverage Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Dynamic Food & Beverage IntellidexSM Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 28.08%. Over this same year, the Index returned 29.17%, while the S&P SuperComposite Food Beverage & Tobacco Index returned 36.08%. The Fund benefited from positive performance in packaged foods & meats, restaurants and soft drinks sub-industries. The Fund suffered negative performance in industrial conglomerates sub-industry.
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Food-Miscellaneous/Diversified | 34.9 | ||||||
Retail-Restaurants | 18.7 | ||||||
Beverages-Non-alcoholic | 12.4 | ||||||
Food-Retail | 8.1 | ||||||
Beverages-Wine/Spirits | 5.8 | ||||||
Food-Meat Products | 5.4 | ||||||
Food-Canned | 3.2 | ||||||
Brewery | 3.0 | ||||||
Food-Confectionery | 3.0 | ||||||
Alternative Waste Technologies | 2.9 | ||||||
Food-Wholesale/Distribution | 2.6 | ||||||
Money Market Fund | 0.0 | ||||||
Other | 0.0 |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Large-Cap Value | 26.3 | ||||||
Large-Cap Growth | 20.7 | ||||||
Mid-Cap Value | 16.9 | ||||||
Small-Cap Value | 16.3 | ||||||
Mid-Cap Growth | 11.1 | ||||||
Small-Cap Growth | 8.7 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
Yum! Brands, Inc. | 5.8 | ||||||
Starbucks Corp. | 5.2 | ||||||
McDonald's Corp. | 5.1 | ||||||
Kellogg Co. | 4.8 | ||||||
H.J. Heinz Co. | 4.7 | ||||||
Coca-Cola Co. (The) | 4.6 | ||||||
ConAgra Foods, Inc. | 4.6 | ||||||
General Mills, Inc. | 4.5 | ||||||
Del Monte Foods Co. | 3.2 | ||||||
Diamond Foods, Inc. | 3.1 | ||||||
Total | 45.6 |
12
Manager's Analysis (Continued)
PowerShares Dynamic Food & Beverage Portfolio (ticker: PBJ)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2010 | ||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg Ann†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
Dynamic Food & Beverage IntellidexSM Index | 29.17 | % | -0.23 | % | 3.92 | % | 20.53 | % | |||||||||||
S&P SuperComposite Food Beverage & Tobacco Index | 36.08 | % | 4.87 | % | 9.28 | % | 53.56 | % | |||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | 2.03 | % | 10.20 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 28.08 | % | -0.92 | % | 3.24 | % | 16.75 | % | |||||||||||
Share Price Return | 28.06 | % | -0.92 | % | 3.26 | % | 16.82 | % |
Fund Inception: June 23, 2005
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.71%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.63% while the Fund's total gross operating expense ratio was 0.74%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P SuperComposite Food Beverage & Tobacco Index and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 42 and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
13
Manager's Analysis
PowerShares Dynamic Healthcare Services Portfolio (ticker: PTJ)
The PowerShares Dynamic Healthcare Services Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Dynamic Healthcare Services IntellidexSM Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 39.40%. Over this same year, the Index returned 40.37%, while the S&P SuperComposite Health Care Providers and Services Index returned 42.84%. The Fund benefited from positive performance in health care services, managed health care and health care facilities sub-industries. The Fund suffered negative performance in drug retail sub-industry.
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Medical-Wholesale Drug Distribution | 15.2 | ||||||
Medical-HMO | 14.0 | ||||||
Medical-Outpatient/Home Medicine | 13.8 | ||||||
Medical Labs & Testing Services | 12.9 | ||||||
Medical-Hospitals | 12.5 | ||||||
Medical-Nursing Homes | 8.4 | ||||||
Pharmacy Services | 7.1 | ||||||
Physical Therapy/Rehabilitation Centers | 5.7 | ||||||
Diversified Operations/ Commercial Services | 2.7 | ||||||
Physician Practice Management | 2.6 | ||||||
Human Resources | 2.6 | ||||||
Dialysis Centers | 2.6 | ||||||
Money Market Fund | 0.1 | ||||||
Other | (0.2 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Mid-Cap Growth | 27.3 | ||||||
Small-Cap Value | 24.6 | ||||||
Large-Cap Growth | 14.4 | ||||||
Small-Cap Growth | 14.3 | ||||||
Large-Cap Value | 13.7 | ||||||
Mid-Cap Value | 5.7 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
AmerisourceBergen Corp. | 5.2 | ||||||
McKesson Corp. | 5.2 | ||||||
Laboratory Corp. of America Holdings | 5.1 | ||||||
Cardinal Health, Inc. | 4.8 | ||||||
Quest Diagnostics, Inc. | 4.8 | ||||||
Aetna, Inc. | 4.7 | ||||||
Medco Health Solutions, Inc. | 4.4 | ||||||
UnitedHealth Group, Inc. | 4.2 | ||||||
Health Management Associates, Inc. | 3.3 | ||||||
Universal Health Services, Inc. | 3.1 | ||||||
Total | 44.8 |
14
Manager's Analysis (Continued)
PowerShares Dynamic Healthcare Services Portfolio (ticker: PTJ)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2010 | ||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg Ann†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
Dynamic Healthcare Services IntellidexSM Index | 40.37 | % | -7.80 | % | -3.30 | % | -11.22 | % | |||||||||||
S&P SuperComposite Health Care Providers and Services Index | 42.84 | % | -5.11 | % | -1.55 | % | -5.46 | % | |||||||||||
Dow Jones U.S. Select Health Care Providers Index | 41.35 | % | -6.21 | % | -2.49 | % | -8.62 | % | |||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | -1.13 | % | -3.99 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 39.40 | % | -8.46 | % | -4.02 | % | -13.54 | % | |||||||||||
Share Price Return | 39.40 | % | -8.48 | % | -4.02 | % | -13.54 | % |
Fund Inception: October 12, 2006
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 1.10%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.65% while the Fund's total gross operating expense ratio was 1.38%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P SuperComposite Health Care Providers and Services Index, Dow Jones U.S. Select Health Care Providers Index, and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 26, 135, and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
15
Manager's Analysis
PowerShares Dynamic Insurance Portfolio (ticker: PIC)
The PowerShares Dynamic Insurance Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Dynamic Insurance IntellidexSM Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 34.85%. Over this same year, the Index returned 35.97%, while the S&P SuperComposite Insurance Index returned 45.10%. The Fund benefited from positive performance in property & casualty insurance, life & health insurance and multi-line insurance sub-industries. Fund performance was positive within each sub-industry in which it was invested.
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Property/Casualty Insurance | 46.0 | ||||||
Multi-line Insurance | 23.3 | ||||||
Life/Health Insurance | 21.9 | ||||||
Investment Management/ Advisor Services | 3.3 | ||||||
Insurance Brokers | 2.9 | ||||||
Reinsurance | 2.7 | ||||||
Money Market Fund | 0.2 | ||||||
Other | (0.3 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Small-Cap Value | 38.9 | ||||||
Large-Cap Value | 34.9 | ||||||
Mid-Cap Value | 19.0 | ||||||
Large-Cap Growth | 4.7 | ||||||
Small-Cap Growth | 2.5 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
MetLife, Inc. | 5.7 | ||||||
Hartford Financial Services Group, Inc. (The) | 5.3 | ||||||
Progressive Corp. (The) | 5.3 | ||||||
Chubb Corp. (The) | 4.8 | ||||||
Allstate Corp. (The) | 4.8 | ||||||
Aflac, Inc. | 4.7 | ||||||
Loews Corp. | 4.7 | ||||||
Travelers Cos., Inc. (The) | 4.4 | ||||||
National Financial Partners Corp. | 3.3 | ||||||
FBL Financial Group, Inc. | 3.2 | ||||||
Total | 46.2 |
16
Manager's Analysis (Continued)
PowerShares Dynamic Insurance Portfolio (ticker: PIC)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2010 | ||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg Ann†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
Dynamic Insurance IntellidexSM Index | 35.97 | % | -4.36 | % | 1.89 | % | 8.81 | % | |||||||||||
S&P SuperComposite Insurance Index | 45.10 | % | -19.75 | % | -10.31 | % | -38.72 | % | |||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | 1.76 | % | 8.17 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 34.85 | % | -4.99 | % | 1.26 | % | 5.82 | % | |||||||||||
Share Price Return | 35.53 | % | -4.96 | % | 1.28 | % | 5.89 | % |
Fund Inception: October 26, 2005
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.98%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.63% while the Fund's total gross operating expense ratio was 1.23%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P SuperComposite Insurance Index and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 55 and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
17
Manager's Analysis
PowerShares Dynamic Leisure and Entertainment Portfolio (ticker: PEJ)
The PowerShares Dynamic Leisure and Entertainment Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Dynamic Leisure and Entertainment IntellidexSM Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 55.81%. Over this same year, the Index returned 58.23%, while the S&P SuperComposite Hotels, Restaurants & Leisure Index returned 48.23%. The Fund benefited from positive performance in restaurants, movies & entertainment and internet retail sub-industries. Fund performance was positive within each sub-industry in which it was invested. The Fund slightly underperformed the Index due to a spin-off of an Index constituent.
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Retail | 44.7 | ||||||
Media | 20.5 | ||||||
Entertainment | 13.5 | ||||||
Lodging | 8.5 | ||||||
Leisure Time | 5.5 | ||||||
Internet | 4.6 | ||||||
Commercial Services | 2.7 | ||||||
Money Market Fund | 0.0 | ||||||
Other | (0.0 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Large-Cap Growth | 26.6 | ||||||
Small-Cap Value | 25.5 | ||||||
Mid-Cap Growth | 21.0 | ||||||
Small-Cap Growth | 13.2 | ||||||
Mid-Cap Value | 8.5 | ||||||
Large-Cap Value | 5.2 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
Marriott International, Inc. | 5.8 | ||||||
Yum! Brands, Inc. | 5.4 | ||||||
Viacom, Inc. | 5.1 | ||||||
Walt Disney Co. (The) | 5.1 | ||||||
Scripps Networks Interactive, Inc. | 4.9 | ||||||
Starbucks Corp. | 4.9 | ||||||
McDonald's Corp. | 4.7 | ||||||
Expedia, Inc. | 4.5 | ||||||
HSN, Inc. | 3.3 | ||||||
Ruby Tuesday, Inc. | 3.2 | ||||||
Total | 46.9 |
18
Manager's Analysis (Continued)
PowerShares Dynamic Leisure and Entertainment Portfolio (ticker: PEJ)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2010 | ||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg Ann†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
Dynamic Leisure and Entertainment IntellidexSM Index | 58.23 | % | -1.54 | % | 3.93 | % | 20.58 | % | |||||||||||
S&P SuperComposite Hotels Restaurants & Leisure Index | 48.23 | % | 3.94 | % | 8.00 | % | 45.06 | % | |||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | 2.03 | % | 10.20 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 55.81 | % | -1.83 | % | 3.48 | % | 18.07 | % | |||||||||||
Share Price Return | 56.29 | % | -1.80 | % | 3.51 | % | 18.25 | % |
Fund Inception: June 23, 2005
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 1.65%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.63% while the Fund's total gross operating expense ratio was 1.06%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P SuperComposite Hotels, Restaurants & Leisure Index and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 46 and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
19
Manager's Analysis
PowerShares Dynamic Media Portfolio (ticker: PBS)
The PowerShares Dynamic Media Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Dynamic Media IntellidexSM Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 66.55%. Over this same year, the Index returned 69.27%, while the S&P SuperComposite Media Index returned 60.50%. The Fund benefited from positive performance in movies & entertainment, cable & satellite and publishing sub-industries. Fund performance was positive within each sub-industry in which it was invested. The Fund slightly underperformed the Index due to a spin-off of an Index constituent.
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Multimedia | 28.0 | ||||||
Cable/Satellite TV | 12.5 | ||||||
Publishing-Newspapers | 7.5 | ||||||
Web Portals/ISP | 6.6 | ||||||
Radio | 6.2 | ||||||
Advertising Agencies | 5.6 | ||||||
Publishing-Books | 4.6 | ||||||
Retail-Discount | 3.3 | ||||||
Telecommunication Services | 3.2 | ||||||
Printing-Commercial | 3.0 | ||||||
Television | 3.0 | ||||||
Advertising Sales | 2.9 | ||||||
Direct Marketing | 2.9 | ||||||
Schools | 2.9 | ||||||
Music | 2.8 | ||||||
Broadcast Services/Program | 2.7 | ||||||
Computer Services | 2.3 | ||||||
Money Market Fund | 0.1 | ||||||
Other | (0.1 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Large-Cap Growth | 24.3 | ||||||
Small-Cap Value | 22.9 | ||||||
Large-Cap Value | 17.3 | ||||||
Mid-Cap Growth | 15.9 | ||||||
Mid-Cap Value | 13.4 | ||||||
Small-Cap Growth | 6.2 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
Comcast Corp. | 5.2 | ||||||
Viacom, Inc. | 5.2 | ||||||
Walt Disney Co. (The) | 5.1 | ||||||
News Corp. | 5.0 | ||||||
Time Warner, Inc. | 5.0 | ||||||
DIRECTV | 4.7 | ||||||
Google, Inc. | 4.3 | ||||||
McGraw-Hill Cos., Inc. (The) | 4.3 | ||||||
E.W. Scripps Co. | 3.4 | ||||||
Entercom Communications Corp. | 3.4 | ||||||
Total | 45.6 |
20
Manager's Analysis (Continued)
PowerShares Dynamic Media Portfolio (ticker: PBS)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2010 | ||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg Ann†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
Dynamic Media IntellidexSM Index | 69.27 | % | -4.87 | % | -0.70 | % | -3.36 | % | |||||||||||
S&P SuperComposite Media Index | 60.50 | % | -5.35 | % | 0.95 | % | 4.66 | % | |||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | 2.03 | % | 10.20 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 66.55 | % | -5.13 | % | -1.13 | % | -5.37 | % | |||||||||||
Share Price Return | 66.59 | % | -5.06 | % | -1.10 | % | -5.23 | % |
Fund Inception: June 23, 2005
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 1.22%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.63% while the Fund's total gross operating expense ratio was 0.77%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P SuperComposite Media Index and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 32 and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
21
Manager's Analysis
PowerShares Dynamic Networking Portfolio (ticker: PXQ)
The PowerShares Dynamic Networking Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Dynamic Networking IntellidexSM Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 55.46%. Over this same year, the Index returned 56.52%, while the S&P SuperComposite Communications Equipment Index returned 26.86%. The Fund benefited from positive performance in communications equipment, systems software and semiconductors sub-industries. Fund performance was positive within each sub-industry in which it was invested.
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Telecommunications | 45.3 | ||||||
Internet | 16.8 | ||||||
Semiconductors | 15.0 | ||||||
Software | 12.9 | ||||||
Electronics | 5.0 | ||||||
Electrical Components & Equipment | 2.7 | ||||||
Computers | 2.4 | ||||||
Money Market Fund | 0.0 | ||||||
Other | (0.1 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Mid-Cap Growth | 34.7 | ||||||
Small-Cap Growth | 31.0 | ||||||
Large-Cap Growth | 20.8 | ||||||
Small-Cap Value | 8.8 | ||||||
Large-Cap Value | 4.7 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
VMware, Inc. | 5.6 | ||||||
Amphenol Corp. | 5.0 | ||||||
Cisco Systems, Inc. | 4.9 | ||||||
Broadcom Corp. | 4.9 | ||||||
Citrix Systems, Inc. | 4.9 | ||||||
Juniper Networks, Inc. | 4.5 | ||||||
Symantec Corp. | 4.5 | ||||||
McAfee, Inc. | 3.9 | ||||||
Oclaro, Inc. | 3.9 | ||||||
Acme Packet, Inc. | 3.8 | ||||||
Total | 45.9 |
22
Manager's Analysis (Continued)
PowerShares Dynamic Networking Portfolio (ticker: PXQ)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2010 | ||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg Ann†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
Dynamic Networking IntellidexSM Index | 56.52 | % | 4.89 | % | 7.97 | % | 45.10 | % | |||||||||||
S&P SuperComposite Communications Equipment Index | 26.86 | % | -3.03 | % | 3.49 | % | 18.01 | % | |||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | 2.03 | % | 10.20 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 55.46 | % | 4.11 | % | 7.32 | % | 40.91 | % | |||||||||||
Share Price Return | 55.45 | % | 4.16 | % | 7.36 | % | 41.11 | % |
Fund Inception: June 23, 2005
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 1.92%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.63% while the Fund's total gross operating expense ratio was 0.95%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P SuperComposite Communications Equipment Index and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 35 and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
23
Manager's Analysis
PowerShares Dynamic Oil & Gas Services Portfolio (ticker: PXJ)
The PowerShares Dynamic Oil & Gas Services Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Dynamic Oil Services IntellidexSM Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 38.41%. Over this same year, the Index returned 39.58%, while the S&P SuperComposite Energy Equipment & Services Index returned 52.36%. The Fund benefited from positive performance in oil & gas equipment & services and oil & gas drilling sub-industries. The Fund suffered negative performance in oil & gas storage & transportation and construction & engineering sub-industries.
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Oil-Field Services | 45.2 | ||||||
Oil Field Machinery & Equipment | 25.3 | ||||||
Oil & Gas Drilling | 20.4 | ||||||
Transportation-Marine | 3.4 | ||||||
Seismic Data Collection | 3.2 | ||||||
Transportation-Services | 2.6 | ||||||
Money Market Fund | 0.0 | ||||||
Other | (0.1 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Small-Cap Growth | 25.2 | ||||||
Small-Cap Value | 22.5 | ||||||
Mid-Cap Value | 20.0 | ||||||
Large-Cap Growth | 14.2 | ||||||
Mid-Cap Growth | 13.5 | ||||||
Large-Cap Value | 4.6 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
FMC Technologies, Inc. | 5.4 | ||||||
Schlumberger Ltd. | 5.3 | ||||||
Rowan Cos., Inc. | 5.2 | ||||||
Oceaneering International, Inc. | 4.9 | ||||||
Halliburton Co. | 4.6 | ||||||
National Oilwell Varco, Inc. | 4.6 | ||||||
Helmerich & Payne, Inc. | 4.5 | ||||||
Cameron International Corp. | 4.3 | ||||||
Gulfmark Offshore, Inc. | 3.4 | ||||||
ION Geophysical Corp. | 3.2 | ||||||
Total | 45.4 |
24
Manager's Analysis (Continued)
PowerShares Dynamic Oil & Gas Services Portfolio (ticker: PXJ)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2010 | ||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg Ann†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
Dynamic Oil Services IntellidexSM Index | 39.58 | % | -6.54 | % | 2.79 | % | 13.23 | % | |||||||||||
S&P SuperComposite Energy Equipment & Services Index | 52.36 | % | -2.64 | % | 5.77 | % | 28.72 | % | |||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | 1.76 | % | 8.17 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 38.41 | % | -7.12 | % | 2.28 | % | 10.72 | % | |||||||||||
Share Price Return | 38.13 | % | -7.13 | % | 2.27 | % | 10.65 | % |
Fund Inception: October 26, 2005
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses during previous fiscal periods, absent which, performance would have been lower. The Adviser has contractually agreed to waive and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.61%. In the Financial Highlights section of this Shareholder Report, the Fund's total net and total gross operating expense ratio was determined to be 0.63%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P SuperComposite Energy Equipment & Services Index and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 25 and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
25
Manager's Analysis
PowerShares Dynamic Pharmaceuticals Portfolio (ticker: PJP)
The PowerShares Dynamic Pharmaceuticals Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Dynamic Pharmaceuticals IntellidexSM Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 42.69%. Over this same year, the Index returned 43.75%, while the S&P SuperComposite Pharmaceuticals Index returned 32.00%. The Fund benefited from positive performance in pharmaceuticals, personal products and health care equipment sub-industries. The Fund suffered negative performance in biotechnology sub-industry.
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Medical-Drugs | 49.7 | ||||||
Medical-Biomedical/Genetics | 19.3 | ||||||
Medical-Generic Drugs | 14.9 | ||||||
Medical Products | 9.9 | ||||||
Consumer Products-Miscellaneous | 3.2 | ||||||
Therapeutics | 3.0 | ||||||
Money Market Fund | 0.0 | ||||||
Other | (0.0 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Large-Cap Value | 31.7 | ||||||
Large-Cap Growth | 19.0 | ||||||
Small-Cap Growth | 18.5 | ||||||
Mid-Cap Value | 12.6 | ||||||
Mid-Cap Growth | 12.0 | ||||||
Small-Cap Value | 6.2 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
Bristol-Myers Squibb Co. | 5.0 | ||||||
Johnson & Johnson | 5.0 | ||||||
Eli Lilly & Co. | 5.0 | ||||||
Amgen, Inc. | 4.9 | ||||||
Pfizer, Inc. | 4.7 | ||||||
Merck & Co., Inc. | 4.6 | ||||||
Abbott Laboratories | 4.6 | ||||||
Gilead Sciences, Inc. | 4.0 | ||||||
Salix Pharmaceuticals Ltd. | 3.7 | ||||||
Perrigo Co. | 3.3 | ||||||
Total | 44.8 |
26
Manager's Analysis (Continued)
PowerShares Dynamic Pharmaceuticals Portfolio (ticker: PJP)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2010 | ||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg Ann†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
Dynamic Pharmaceuticals IntellidexSM Index | 43.75 | % | 1.53 | % | 7.24 | % | 40.37 | % | |||||||||||
S&P SuperComposite Pharmaceuticals Index | 32.00 | % | -2.70 | % | 1.92 | % | 9.62 | % | |||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | 2.03 | % | 10.20 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 42.69 | % | 0.77 | % | 6.59 | % | 36.29 | % | |||||||||||
Share Price Return | 42.51 | % | 0.77 | % | 6.59 | % | 36.32 | % |
Fund Inception: June 23, 2005
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.66%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.63% while the Fund's total gross operating expense ratio was 0.74%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P SuperComposite Pharmaceuticals Index and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 26 and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
27
Manager's Analysis
PowerShares Dynamic Retail Portfolio (ticker: PMR)
The PowerShares Dynamic Retail Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Dynamic Retail IntellidexSM Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 28.49%. Over this same year, the Index returned 29.69%, while the S&P SuperComposite Retailing Index returned 45.14%. The Fund benefited from positive performance in apparel retail, home furnishing retail and specialty stores sub-industries. The Fund suffered negative performance in drug retail sub-industry.
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Retail-Apparel/Shoe | 38.0 | ||||||
Retail-Major Department Store | 9.7 | ||||||
Retail-Discount | 7.1 | ||||||
Retail-Home Furnishings | 6.4 | ||||||
Retail-Automobile | 5.7 | ||||||
Retail-Regional Department Store | 5.6 | ||||||
Retail-Bedding | 4.8 | ||||||
Retail-Drug Store | 4.4 | ||||||
Retail-Office Supplies | 4.0 | ||||||
Rental Auto/Equipment | 3.5 | ||||||
Transportation-Equipment & Leasing | 2.8 | ||||||
Retail-Fabric Store | 2.8 | ||||||
Retail-Sporting Goods | 2.6 | ||||||
Distribution/Wholesale | 2.6 | ||||||
Money Market Fund | 0.2 | ||||||
Other | (0.2 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Small-Cap Value | 34.7 | ||||||
Large-Cap Growth | 22.4 | ||||||
Mid-Cap Growth | 21.2 | ||||||
Small-Cap Growth | 16.7 | ||||||
Large-Cap Value | 5.0 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
Limited Brands, Inc. | 5.5 | ||||||
Gap, Inc. (The) | 5.0 | ||||||
Nordstrom, Inc. | 4.9 | ||||||
TJX Cos., Inc. (The) | 4.8 | ||||||
Bed Bath & Beyond, Inc. | 4.8 | ||||||
Walgreen Co. | 4.4 | ||||||
Wal-Mart Stores, Inc. | 4.4 | ||||||
Staples, Inc. | 4.0 | ||||||
Dollar Thrifty Automotive Group, Inc. | 3.5 | ||||||
Genesco, Inc. | 3.3 | ||||||
Total | 44.6 |
28
Manager's Analysis (Continued)
PowerShares Dynamic Retail Portfolio (ticker: PMR)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2010 | ||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg Ann†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
Dynamic Retail IntellidexSM Index | 29.69 | % | -0.97 | % | 5.97 | % | 29.88 | % | |||||||||||
S&P SuperComposite Retailing Index | 45.14 | % | -0.76 | % | 3.46 | % | 16.55 | % | |||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | 1.76 | % | 8.17 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 28.49 | % | -1.65 | % | 5.31 | % | 26.30 | % | |||||||||||
Share Price Return | 28.56 | % | -1.64 | % | 5.31 | % | 26.28 | % |
Fund Inception: October 26, 2005
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 1.08%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.63% while the Fund's total gross operating expense ratio was 0.89%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P SuperComposite Retailing Index and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 94 and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
29
Manager's Analysis
PowerShares Dynamic Semiconductors Portfolio (ticker: PSI)
The PowerShares Dynamic Semiconductors Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Dynamic Semiconductors IntellidexSM Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 38.16%. Over this same year, the Index returned 39.17%, while the S&P SuperComposite Semiconductor Index returned 51.11%. The Fund benefited from positive performance in semiconductors, semiconductor equipment and electronic components sub-industries. The Fund suffered negative performance in communications equipment sub-industry.
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Electronic Components-Semiconductors | 52.2 | ||||||
Semiconductor Equipment | 20.7 | ||||||
Semiconductor Components-Integrated Circuits | 13.3 | ||||||
Wireless Equipment | 6.0 | ||||||
Lasers-Systems/Components | 2.7 | ||||||
Networking Products | 2.7 | ||||||
Electronic Components-Miscellaneous | 2.5 | ||||||
Money Market Fund | 0.1 | ||||||
Other | (0.2 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Mid-Cap Growth | 36.1 | ||||||
Small-Cap Growth | 23.1 | ||||||
Small-Cap Value | 20.2 | ||||||
Large-Cap Growth | 10.1 | ||||||
Mid-Cap Value | 5.7 | ||||||
Large-Cap Value | 4.8 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
Intel Corp. | 5.1 | ||||||
Broadcom Corp. | 5.0 | ||||||
Texas Instruments, Inc. | 4.8 | ||||||
Altera Corp. | 4.7 | ||||||
Micron Technology, Inc. | 4.7 | ||||||
Analog Devices, Inc. | 4.7 | ||||||
Xilinx, Inc. | 4.5 | ||||||
NVIDIA Corp. | 4.4 | ||||||
Entegris, Inc. | 3.4 | ||||||
RF Micro Devices, Inc. | 3.3 | ||||||
Total | 44.6 |
30
Manager's Analysis (Continued)
PowerShares Dynamic Semiconductors Portfolio (ticker: PSI)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2010 | ||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg Ann†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
Dynamic Semiconductors IntellidexSM Index | 39.17 | % | -8.13 | % | -0.01 | % | -0.02 | % | |||||||||||
S&P SuperComposite Semiconductor Index | 51.11 | % | -0.62 | % | 0.33 | % | 1.59 | % | |||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | 2.03 | % | 10.20 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 38.16 | % | -8.85 | % | -0.70 | % | -3.36 | % | |||||||||||
Share Price Return | 38.16 | % | -8.86 | % | -0.72 | % | -3.43 | % |
Fund Inception: June 23, 2005
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.82%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.63% while the Fund's total gross operating expense ratio was 0.90%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P SuperComposite Semiconductor Index and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 37 and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
31
Manager's Analysis
PowerShares Dynamic Software Portfolio (ticker: PSJ)
The PowerShares Dynamic Software Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Dynamic Software IntellidexSM Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 46.65%. Over this same year, the Index returned 47.64%, while the S&P SuperComposite Software & Services Index returned 39.05%. The Fund benefited from positive performance in systems software, application software and data processing & outsourced services sub-industries. The Fund suffered negative performance in electronic equipment & instruments sub-industry.
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Enterprise Software/Services | 25.0 | ||||||
Applications Software | 13.0 | ||||||
Data Processing/Management | 10.0 | ||||||
Computers-Integrated Systems | 8.3 | ||||||
Industrial Audio & Video Products | 6.0 | ||||||
Software Tools | 5.7 | ||||||
Computer Services | 5.6 | ||||||
Transactional Software | 5.6 | ||||||
Computer Aided Design | 5.3 | ||||||
Internet Security | 4.7 | ||||||
Internet Infrastructure Software | 3.1 | ||||||
Consulting Services | 2.7 | ||||||
Web Portals/ISP | 2.6 | ||||||
Computer Software | 2.5 | ||||||
Money Market Fund | 0.0 | ||||||
Other | (0.1 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Mid-Cap Growth | 34.4 | ||||||
Small-Cap Growth | 30.2 | ||||||
Large-Cap Growth | 20.1 | ||||||
Small-Cap Value | 10.6 | ||||||
Large-Cap Value | 4.7 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
Dolby Laboratories, Inc. | 5.9 | ||||||
VMware, Inc. | 5.7 | ||||||
BMC Software, Inc. | 4.9 | ||||||
Microsoft Corp. | 4.9 | ||||||
Fiserv, Inc. | 4.9 | ||||||
Oracle Corp. | 4.8 | ||||||
CA, Inc. | 4.7 | ||||||
Symantec Corp. | 4.7 | ||||||
Lawson Software, Inc. | 3.2 | ||||||
TIBCO Software, Inc. | 3.1 | ||||||
Total | 46.8 |
32
Manager's Analysis (Continued)
PowerShares Dynamic Software Portfolio (ticker: PSJ)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2010 | ||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg Ann†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
Dynamic Software IntellidexSM Index | 47.64 | % | 4.06 | % | 9.41 | % | 54.68 | % | |||||||||||
S&P SuperComposite Software & Services Index | 39.05 | % | 0.32 | % | 4.43 | % | 23.30 | % | |||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | 2.03 | % | 10.20 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 46.65 | % | 3.40 | % | 8.79 | % | 50.47 | % | |||||||||||
Share Price Return | 46.71 | % | 3.40 | % | 8.78 | % | 50.43 | % |
Fund Inception: June 23, 2005
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.97%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.63% while the Fund's total gross operating expense ratio was 0.75%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P SuperComposite Software & Services Index and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 99 and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
33
Frequency Distribution of Discounts & Premiums
Since Inception through April 30, 2010
Closing Price Above NAV (bps) | |||||||||||||||||||||||||||||||||||||||
Ticker | Fund Name | Inception | Days | 0-24 | 25-49 | 50-99 | 100-149 | 150-199 | 200+ | ||||||||||||||||||||||||||||||
PJB | PowerShares Dynamic Banking Portfolio | 10/12/06 | 893 | 310 | 38 | 9 | 7 | 1 | 3 | ||||||||||||||||||||||||||||||
PBE | PowerShares Dynamic Biotechnology & Genome Portfolio | 6/23/05 | 1222 | 471 | 43 | 3 | 1 | 0 | 0 | ||||||||||||||||||||||||||||||
PKB | PowerShares Dynamic Building & Construction Portfolio | 10/26/05 | 1135 | 377 | 39 | 15 | 1 | 1 | 2 | ||||||||||||||||||||||||||||||
PXE | PowerShares Dynamic Energy Exploration & Production Portfolio | 10/26/05 | 1135 | 447 | 23 | 6 | 1 | 0 | 1 | ||||||||||||||||||||||||||||||
PBJ | PowerShares Dynamic Food & Beverage Portfolio | 6/23/05 | 1222 | 490 | 31 | 8 | 3 | 0 | 0 | ||||||||||||||||||||||||||||||
PTJ | PowerShares Dynamic Healthcare Services Portfolio | 10/12/06 | 893 | 293 | 11 | 5 | 1 | 0 | 0 | ||||||||||||||||||||||||||||||
PIC | PowerShares Dynamic Insurance Portfolio | 10/26/05 | 1135 | 447 | 27 | 16 | 1 | 3 | 1 | ||||||||||||||||||||||||||||||
PEJ | PowerShares Dynamic Leisure and Entertainment Portfolio | 6/23/05 | 1222 | 444 | 30 | 13 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||
PBS | PowerShares Dynamic Media Portfolio | 6/23/05 | 1222 | 445 | 32 | 5 | 1 | 0 | 1 | ||||||||||||||||||||||||||||||
PXQ | PowerShares Dynamic Networking Portfolio | 6/23/05 | 1222 | 492 | 32 | 9 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||
PXJ | PowerShares Dynamic Oil & Gas Services Portfolio | 10/26/05 | 1135 | 410 | 51 | 16 | 0 | 0 | 1 | ||||||||||||||||||||||||||||||
PJP | PowerShares Dynamic Pharmaceuticals Portfolio | 6/23/05 | 1222 | 529 | 18 | 9 | 2 | 0 | 0 | ||||||||||||||||||||||||||||||
PMR | PowerShares Dynamic Retail Portfolio | 10/26/05 | 1135 | 420 | 28 | 8 | 1 | 0 | 0 | ||||||||||||||||||||||||||||||
PSI | PowerShares Dynamic Semiconductors Portfolio | 6/23/05 | 1222 | 487 | 33 | 7 | 1 | 2 | 2 | ||||||||||||||||||||||||||||||
PSJ | PowerShares Dynamic Software Portfolio | 6/23/05 | 1222 | 564 | 27 | 12 | 5 | 2 | 0 |
34
Closing Price Below NAV (bps) | |||||||||||||||||||||||||||
Ticker | -0-24 | -25-49 | -50-99 | -100-149 | -150-199 | -200+ | |||||||||||||||||||||
PJB | 481 | 38 | 5 | 0 | 1 | 0 | |||||||||||||||||||||
PBE | 648 | 46 | 9 | 1 | 0 | 0 | |||||||||||||||||||||
PKB | 669 | 26 | 4 | 0 | 1 | 0 | |||||||||||||||||||||
PXE | 616 | 33 | 7 | 0 | 1 | 0 | |||||||||||||||||||||
PBJ | 667 | 23 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
PTJ | 573 | 10 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
PIC | 609 | 24 | 3 | 3 | 1 | 0 | |||||||||||||||||||||
PEJ | 715 | 17 | 2 | 0 | 0 | 1 | |||||||||||||||||||||
PBS | 703 | 33 | 2 | 0 | 0 | 0 | |||||||||||||||||||||
PXQ | 665 | 23 | 1 | 0 | 0 | 0 | |||||||||||||||||||||
PXJ | 629 | 23 | 5 | 0 | 0 | 0 | |||||||||||||||||||||
PJP | 645 | 17 | 2 | 0 | 0 | 0 | |||||||||||||||||||||
PMR | 647 | 29 | 2 | 0 | 0 | 0 | |||||||||||||||||||||
PSI | 669 | 16 | 2 | 2 | 0 | 1 | |||||||||||||||||||||
PSJ | 601 | 7 | 3 | 0 | 1 | 0 |
35
Fees and Expenses
As a shareholder of a Fund of the PowerShares Exchange-Traded Fund Trust, you incur advisory fees and other Fund expenses. The expense examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds.
The example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended April 30, 2010.
Actual Expenses
The first line in the following tables provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading "Expenses Paid During the Six-Month Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line in the following tables provides information about hypothetical account values and hypothetical expenses based on the Funds' actual expense ratio and an assumed annualized rate of return of 5% per year before expenses, which is not the Funds' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the tables are meant to highlight your ongoing costs only, and do not reflect any transactional costs such as sales charges and brokerage commission. Therefore the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning Account Value November 1, 2009 | Ending Account Value April 30, 2010 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period (1) | ||||||||||||||||
PowerShares Dynamic Banking Portfolio Actual | $ | 1,000.00 | $ | 1,216.54 | 0.65 | % | $ | 3.57 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.57 | 0.65 | % | $ | 3.26 | |||||||||||
PowerShares Dynamic Biotechnology & Genome Portfolio Actual | $ | 1,000.00 | $ | 1,289.94 | 0.63 | % | $ | 3.58 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.67 | 0.63 | % | $ | 3.16 | |||||||||||
PowerShares Dynamic Building & Construction Portfolio Actual | $ | 1,000.00 | $ | 1,241.29 | 0.63 | % | $ | 3.50 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.67 | 0.63 | % | $ | 3.16 | |||||||||||
PowerShares Dynamic Energy Exploration & Production Portfolio Actual | $ | 1,000.00 | $ | 1,162.92 | 0.63 | % | $ | 3.38 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.67 | 0.63 | % | $ | 3.16 |
36
Fees and Expenses (Continued)
Beginning Account Value November 1, 2009 | Ending Account Value April 30, 2010 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period (1) | ||||||||||||||||
PowerShares Dynamic Food & Beverage Portfolio Actual | $ | 1,000.00 | $ | 1,173.62 | 0.63 | % | $ | 3.40 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.67 | 0.63 | % | $ | 3.16 | |||||||||||
PowerShares Dynamic Healthcare Services Portfolio Actual | $ | 1,000.00 | $ | 1,232.67 | 0.65 | % | $ | 3.60 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.57 | 0.65 | % | $ | 3.26 | |||||||||||
PowerShares Dynamic Insurance Portfolio Actual | $ | 1,000.00 | $ | 1,172.52 | 0.63 | % | $ | 3.39 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.67 | 0.63 | % | $ | 3.16 | |||||||||||
PowerShares Dynamic Leisure and Entertainment Portfolio Actual | $ | 1,000.00 | $ | 1,390.62 | 0.63 | % | $ | 3.73 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.67 | 0.63 | % | $ | 3.16 | |||||||||||
PowerShares Dynamic Media Portfolio Actual | $ | 1,000.00 | $ | 1,328.83 | 0.63 | % | $ | 3.64 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.67 | 0.63 | % | $ | 3.16 | |||||||||||
PowerShares Dynamic Networking Portfolio Actual | $ | 1,000.00 | $ | 1,290.88 | 0.63 | % | $ | 3.58 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.67 | 0.63 | % | $ | 3.16 | |||||||||||
PowerShares Dynamic Oil & Gas Services Portfolio Actual | $ | 1,000.00 | $ | 1,126.21 | 0.62 | % | $ | 3.27 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.72 | 0.62 | % | $ | 3.11 | |||||||||||
PowerShares Dynamic Pharmaceuticals Portfolio Actual | $ | 1,000.00 | $ | 1,186.78 | 0.63 | % | $ | 3.42 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.67 | 0.63 | % | $ | 3.16 | |||||||||||
PowerShares Dynamic Retail Portfolio Actual | $ | 1,000.00 | $ | 1,286.57 | 0.63 | % | $ | 3.57 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.67 | 0.63 | % | $ | 3.16 | |||||||||||
PowerShares Dynamic Semiconductors Portfolio Actual | $ | 1,000.00 | $ | 1,293.17 | 0.63 | % | $ | 3.58 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.67 | 0.63 | % | $ | 3.16 | |||||||||||
PowerShares Dynamic Software Portfolio Actual | $ | 1,000.00 | $ | 1,183.82 | 0.63 | % | $ | 3.41 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.67 | 0.63 | % | $ | 3.16 |
(1) Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six months ended April 30, 2010. Expenses are calculated by multiplying the Fund's annualized expense ratio by the average account value for the period; then multiplying the result by 181 and then dividing the result by 365. Expense ratios for the most recent half-year may differ from expenses ratios based on annualized data in the Financial Highlights.
37
Schedule of Investments
PowerShares Dynamic Banking Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks—99.9% | |||||||||||
Commercial Banks - Central U.S.—19.9% | |||||||||||
15,466 | BancFirst Corp. | $ | 682,669 | ||||||||
27,928 | Commerce Bancshares, Inc. | 1,156,778 | |||||||||
33,249 | First Financial Bancorp | 635,389 | |||||||||
11,788 | First Financial Bankshares, Inc. | 630,422 | |||||||||
29,108 | International Bancshares Corp. | 703,540 | |||||||||
14,753 | Prosperity Bancshares, Inc. | 578,613 | |||||||||
16,108 | UMB Financial Corp. | 678,469 | |||||||||
5,065,880 | |||||||||||
Commercial Banks - Eastern U.S.—16.4% | |||||||||||
64,148 | Fulton Financial Corp. | 673,554 | |||||||||
14,611 | M&T Bank Corp. | 1,276,271 | |||||||||
29,054 | NBT Bancorp, Inc. | 710,951 | |||||||||
34,805 | S&T Bancorp, Inc. | 837,060 | |||||||||
102,000 | TrustCo Bank Corp. NY | 678,300 | |||||||||
4,176,136 | |||||||||||
Commercial Banks - Southern U.S.—11.5% | |||||||||||
20,088 | Bank of The Ozarks, Inc. | 772,785 | |||||||||
24,190 | Community Trust Bancorp, Inc. | 726,184 | |||||||||
15,305 | Hancock Holding Co. | 625,669 | |||||||||
40,733 | WesBanco, Inc. | 785,332 | |||||||||
2,909,970 | |||||||||||
Commercial Banks - Western U.S.—5.5% | |||||||||||
14,620 | Bank of Hawaii Corp. | 773,106 | |||||||||
69,887 | Nara Bancorp, Inc.* | 628,983 | |||||||||
1,402,089 | |||||||||||
Diversified Banking Institution—4.5% | |||||||||||
26,956 | JPMorgan Chase & Co. | 1,147,786 | |||||||||
S&L/Thrifts - Central U.S.—7.6% | |||||||||||
17,825 | Capitol Federal Financial | 671,824 | |||||||||
88,043 | TFS Financial Corp. | 1,244,928 | |||||||||
1,916,752 | |||||||||||
S&L/Thrifts - Eastern U.S.—13.3% | |||||||||||
50,832 | Dime Community Bancshares | 648,108 | |||||||||
47,949 | Investors Bancorp, Inc.* | 666,971 | |||||||||
51,511 | NewAlliance Bancshares, Inc. | 671,188 | |||||||||
52,252 | Northwest Bancshares, Inc. | 652,628 | |||||||||
70,768 | Provident New York Bancorp | 726,787 | |||||||||
3,365,682 | |||||||||||
Super - Regional Banks - U.S.—21.2% | |||||||||||
92,658 | Fifth Third Bancorp | 1,381,531 | |||||||||
21,044 | PNC Financial Services Group, Inc. | 1,414,367 | |||||||||
45,971 | U.S. Bancorp | 1,230,643 | |||||||||
41,381 | Wells Fargo & Co. | 1,370,125 | |||||||||
5,396,666 | |||||||||||
Total Common Stocks (Cost $21,888,730) | 25,380,961 |
Number of Shares | Value | ||||||||||
Money Market Fund—0.3% | |||||||||||
82,678 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $82,678) | $ | 82,678 | ||||||||
Total Investments (Cost $21,971,408)—100.2% | 25,463,639 | ||||||||||
Liabilities in excess of other assets—(0.2%) | (59,750 | ) | |||||||||
Net Assets—100.0% | $ | 25,403,889 |
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
38
Schedule of Investments
PowerShares Dynamic Biotechnology & Genome Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks—100.1% | |||||||||||
Biotechnology—58.8% | |||||||||||
279,646 | Affymax, Inc.* | $ | 6,666,761 | ||||||||
193,603 | Alexion Pharmaceuticals, Inc.* | 10,624,933 | |||||||||
169,358 | Amgen, Inc.* | 9,714,375 | |||||||||
174,281 | Biogen Idec, Inc.* | 9,280,463 | |||||||||
287,645 | Clinical Data, Inc.* | 5,373,209 | |||||||||
248,546 | Cubist Pharmaceuticals, Inc.* | 5,572,401 | |||||||||
356,713 | Emergent Biosolutions, Inc.* | 5,807,288 | |||||||||
562,905 | Enzon Pharmaceuticals, Inc.* | 5,955,535 | |||||||||
808,253 | Exelixis, Inc.* | 4,671,702 | |||||||||
201,370 | Gilead Sciences, Inc.* | 7,988,348 | |||||||||
956,014 | Halozyme Therapeutics, Inc.* | 8,145,239 | |||||||||
490,560 | Incyte Corp.* | 6,583,315 | |||||||||
188,873 | Life Technologies Corp.* | 10,333,242 | |||||||||
101,549 | Millipore Corp.* | 10,779,426 | |||||||||
141,259 | OSI Pharmaceuticals, Inc.* | 8,287,665 | |||||||||
747,056 | PDL BioPharma, Inc. | 4,347,866 | |||||||||
979,289 | Zymogenetics, Inc.* | 5,816,977 | |||||||||
125,948,745 | |||||||||||
Chemicals—5.6% | |||||||||||
201,032 | Sigma-Aldrich Corp. | 11,921,197 | |||||||||
Electronics—8.3% | |||||||||||
76,565 | Dionex Corp.* | 6,245,407 | |||||||||
160,698 | Waters Corp.* | 11,568,649 | |||||||||
17,814,056 | |||||||||||
Healthcare - Products—7.8% | |||||||||||
715,375 | Affymetrix, Inc.* | 4,964,703 | |||||||||
418,350 | Bruker Corp.* | 6,396,571 | |||||||||
81,811 | Techne Corp. | 5,419,979 | |||||||||
16,781,253 | |||||||||||
Pharmaceuticals—19.6% | |||||||||||
609,488 | Cadence Pharmaceuticals, Inc.* | 5,972,982 | |||||||||
846,181 | Inspire Pharmaceuticals, Inc.* | 5,796,340 | |||||||||
381,152 | MAP Pharmaceuticals, Inc.* | 6,845,490 | |||||||||
422,065 | Nektar Therapeutics* | 5,892,028 | |||||||||
215,825 | Neogen Corp.* | 5,674,039 | |||||||||
275,813 | Targacept, Inc.* | 6,564,350 | |||||||||
419,695 | Viropharma, Inc.* | 5,338,520 | |||||||||
42,083,749 | |||||||||||
Total Common Stocks (Cost $190,666,559) | 214,549,000 |
Number of Shares | Value | ||||||||||
Money Market Fund—0.0% | |||||||||||
33,426 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $33,426) | $ | 33,426 | ||||||||
Total Investments (Cost $190,699,985)—100.1% | 214,582,426 | ||||||||||
Liabilities in excess of other assets—(0.1%) | (191,917 | ) | |||||||||
Net Assets—100.0% | $ | 214,390,509 |
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
39
Schedule of Investments
PowerShares Dynamic Building & Construction Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks—100.0% | |||||||||||
Building Materials—24.7% | |||||||||||
54,037 | AAON, Inc. | $ | 1,304,453 | ||||||||
79,557 | Apogee Enterprises, Inc. | 1,093,113 | |||||||||
30,876 | Armstrong World Industries, Inc.* | 1,344,650 | |||||||||
97,004 | Comfort Systems USA, Inc. | 1,365,816 | |||||||||
97,334 | Gibraltar Industries, Inc.* | 1,461,957 | |||||||||
88,581 | Owens Corning* | 3,080,847 | |||||||||
72,973 | Quanex Building Products Corp. | 1,386,487 | |||||||||
32,261 | Universal Forest Products, Inc. | 1,356,575 | |||||||||
12,393,898 | |||||||||||
Commercial Services—2.2% | |||||||||||
62,706 | Team, Inc.* | 1,091,084 | |||||||||
Engineering & Construction—29.8% | |||||||||||
49,386 | EMCOR Group, Inc.* | 1,410,464 | |||||||||
48,700 | Fluor Corp. | 2,573,308 | |||||||||
41,149 | Granite Construction, Inc. | 1,383,018 | |||||||||
46,289 | Insituform Technologies, Inc., Class A* | 1,109,547 | |||||||||
53,719 | Jacobs Engineering Group, Inc.* | 2,590,330 | |||||||||
41,219 | Layne Christensen Co.* | 1,128,576 | |||||||||
33,593 | Michael Baker Corp.* | 1,187,177 | |||||||||
32,763 | Shaw Group, Inc. (The)* | 1,254,168 | |||||||||
44,820 | URS Corp.* | 2,301,507 | |||||||||
14,938,095 | |||||||||||
Environmental Control—2.6% | |||||||||||
54,343 | Tetra Tech, Inc.* | 1,323,252 | |||||||||
Home Builders—12.6% | |||||||||||
168,631 | D.R. Horton, Inc. | 2,477,189 | |||||||||
2,942 | NVR, Inc.* | 2,112,503 | |||||||||
269,399 | Standard Pacific Corp.* | 1,726,848 | |||||||||
6,316,540 | |||||||||||
Machinery - Diversified—4.2% | |||||||||||
24,294 | NACCO Industries, Inc., Class A | 2,112,120 | |||||||||
Metal Fabricate/Hardware—2.7% | |||||||||||
15,966 | Valmont Industries, Inc. | 1,329,808 | |||||||||
Miscellaneous Manufacturing—2.6% | |||||||||||
25,094 | A.O. Smith Corp. | 1,295,603 | |||||||||
Office Furnishings—3.5% | |||||||||||
132,195 | Interface, Inc., Class A | 1,729,111 | |||||||||
Real Estate—2.9% | |||||||||||
64,086 | Forestar Group, Inc.* | 1,444,499 |
Number of Shares | Value | ||||||||||
Common Stocks (Continued) | |||||||||||
Retail—12.2% | |||||||||||
66,802 | Home Depot, Inc. (The) | $ | 2,354,771 | ||||||||
87,906 | Lowe's Cos., Inc. | 2,384,011 | |||||||||
20,773 | Tractor Supply Co. | 1,395,322 | |||||||||
6,134,104 | |||||||||||
Total Common Stocks (Cost $40,206,104) | 50,108,114 | ||||||||||
Money Market Fund—0.1% | |||||||||||
54,123 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $54,123) | 54,123 | |||||||||
Total Investments (Cost $40,260,227)—100.1% | 50,162,237 | ||||||||||
Liabilities in excess of other assets—(0.1%) | (47,864 | ) | |||||||||
Net Assets—100.0% | $ | 50,114,373 |
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
40
Schedule of Investments
PowerShares Dynamic Energy Exploration & Production Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—99.9% | |||||||||||
Gas - Distribution—5.2% | |||||||||||
32,280 | Energen Corp. | $ | 1,577,524 | ||||||||
29,503 | National Fuel Gas Co. | 1,534,746 | |||||||||
3,112,270 | |||||||||||
Oil Companies - Exploration & Production—71.8% | |||||||||||
38,363 | Anadarko Petroleum Corp. | 2,384,644 | |||||||||
25,959 | Apache Corp. | 2,641,588 | |||||||||
54,757 | Berry Petroleum Co., Class A | 1,772,484 | |||||||||
36,559 | Cabot Oil & Gas Corp. | 1,320,877 | |||||||||
101,255 | Chesapeake Energy Corp. | 2,409,869 | |||||||||
24,556 | Cimarex Energy Co. | 1,671,772 | |||||||||
56,032 | CNX Gas Corp.* | 2,144,345 | |||||||||
31,592 | Concho Resources, Inc.* | 1,795,057 | |||||||||
28,461 | Contango Oil & Gas Co.* | 1,562,509 | |||||||||
37,170 | Continental Resources, Inc.* | 1,827,277 | |||||||||
66,073 | Dorchester Minerals LP | 1,812,382 | |||||||||
145,727 | Energy Partners Ltd.* | 1,992,088 | |||||||||
77,603 | EXCO Resources, Inc. | 1,439,536 | |||||||||
161,260 | Gulfport Energy Corp.* | 2,015,750 | |||||||||
69,351 | Legacy Reserves LP | 1,656,795 | |||||||||
33,693 | Occidental Petroleum Corp. | 2,987,221 | |||||||||
31,457 | Pioneer Natural Resources Co. | 2,017,337 | |||||||||
34,948 | Questar Corp. | 1,675,757 | |||||||||
98,356 | Quicksilver Resources, Inc.* | 1,364,198 | |||||||||
86,069 | Stone Energy Corp.* | 1,402,925 | |||||||||
59,995 | Vanguard Natural Resources LLC | 1,480,677 | |||||||||
127,831 | Venoco, Inc.* | 1,904,682 | |||||||||
19,605 | Whiting Petroleum Corp.* | 1,770,920 | |||||||||
43,050,690 | |||||||||||
Oil Companies - Integrated—22.9% | |||||||||||
37,211 | Chevron Corp. | 3,030,464 | |||||||||
56,049 | ConocoPhillips | 3,317,540 | |||||||||
41,390 | Exxon Mobil Corp. | 2,808,311 | |||||||||
45,754 | Hess Corp. | 2,907,667 | |||||||||
28,275 | Murphy Oil Corp. | 1,700,741 | |||||||||
13,764,723 | |||||||||||
Total Common Stocks and Other Equity Interests (Cost $52,479,653) | 59,927,683 | ||||||||||
Money Market Fund—0.1% | |||||||||||
62,144 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $62,144) | 62,144 | |||||||||
Total Investments (Cost $52,541,797)—100.0% | 59,989,827 | ||||||||||
Liabilities in excess of other assets—(0.0%) | (7,233 | ) | |||||||||
Net Assets—100.0% | $ | 59,982,594 |
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
41
Schedule of Investments
PowerShares Dynamic Food & Beverage Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks—100.0% | |||||||||||
Alternative Waste Technologies—2.9% | |||||||||||
225,634 | Darling International, Inc.* | $ | 2,141,267 | ||||||||
Beverages - Non-alcoholic—12.4% | |||||||||||
32,680 | Coca-Cola Bottling Co. Consolidated | 1,800,014 | |||||||||
63,243 | Coca-Cola Co. (The) | 3,380,338 | |||||||||
71,177 | Coca-Cola Enterprises, Inc. | 1,973,738 | |||||||||
57,279 | Dr Pepper Snapple Group, Inc. | 1,874,742 | |||||||||
9,028,832 | |||||||||||
Beverages - Wine/Spirits—5.8% | |||||||||||
34,733 | Brown-Forman Corp., Class B | 2,020,766 | |||||||||
120,918 | Constellation Brands, Inc., Class A* | 2,209,172 | |||||||||
4,229,938 | |||||||||||
Brewery—3.0% | |||||||||||
38,433 | Boston Beer Co., Inc., Class A* | 2,191,065 | |||||||||
Food - Canned—3.2% | |||||||||||
155,170 | Del Monte Foods Co. | 2,318,240 | |||||||||
Food - Confectionery—3.0% | |||||||||||
45,739 | Hershey Co. (The) | 2,150,190 | |||||||||
Food - Meat Products—5.4% | |||||||||||
44,238 | Hormel Foods Corp. | 1,803,141 | |||||||||
106,727 | Tyson Foods, Inc., Class A | 2,090,782 | |||||||||
3,893,923 | |||||||||||
Food - Miscellaneous/Diversified—34.9% | |||||||||||
124,904 | Chiquita Brands International, Inc.* | 1,878,556 | |||||||||
136,308 | ConAgra Foods, Inc. | 3,335,457 | |||||||||
55,820 | Corn Products International, Inc. | 2,009,520 | |||||||||
52,184 | Diamond Foods, Inc. | 2,228,779 | |||||||||
46,300 | General Mills, Inc. | 3,295,634 | |||||||||
72,637 | H.J. Heinz Co. | 3,404,496 | |||||||||
63,933 | Kellogg Co. | 3,512,479 | |||||||||
31,605 | Lancaster Colony Corp. | 1,737,327 | |||||||||
134,114 | Sara Lee Corp. | 1,907,101 | |||||||||
1,430 | Seaboard Corp. | 2,087,814 | |||||||||
25,397,163 | |||||||||||
Food - Retail—8.1% | |||||||||||
62,068 | Ruddick Corp. | 2,193,483 | |||||||||
72,978 | Safeway, Inc. | 1,722,281 | |||||||||
51,243 | Whole Foods Market, Inc.* | 1,999,502 | |||||||||
5,915,266 | |||||||||||
Food - Wholesale/Distribution—2.6% | |||||||||||
61,920 | United Natural Foods, Inc.* | 1,900,325 |
Number of Shares | Value | ||||||||||
Common Stocks (Continued) | |||||||||||
Retail - Restaurants—18.7% | |||||||||||
52,217 | McDonald's Corp. | $ | 3,685,998 | ||||||||
24,984 | Panera Bread Co., Class A* | 1,947,253 | |||||||||
145,530 | Starbucks Corp. | 3,780,869 | |||||||||
98,877 | Yum! Brands, Inc. | 4,194,362 | |||||||||
13,608,482 | |||||||||||
Total Common Stocks (Cost $64,884,816) | 72,774,691 | ||||||||||
Money Market Fund—0.0% | |||||||||||
12,054 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $12,054) | 12,054 | |||||||||
Total Investments (Cost $64,896,870)—100.0% | 72,786,745 | ||||||||||
Other assets less liabilities—0.0% | 7,938 | ||||||||||
Net Assets—100.0% | $ | 72,794,683 |
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
42
Schedule of Investments
PowerShares Dynamic Healthcare Services Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks—100.1% | |||||||||||
Dialysis Centers—2.6% | |||||||||||
9,010 | DaVita, Inc.* | $ | 562,494 | ||||||||
Diversified Operations/Commercial Services—2.7% | |||||||||||
10,365 | Chemed Corp. | 570,179 | |||||||||
Human Resources—2.6% | |||||||||||
10,664 | Emergency Medical Services Corp., Class A* | 563,912 | |||||||||
Medical Labs & Testing Services—12.9% | |||||||||||
28,034 | Bio-Reference Labs, Inc.* | 655,995 | |||||||||
13,884 | Laboratory Corp. of America Holdings* | 1,090,866 | |||||||||
17,936 | Quest Diagnostics, Inc. | 1,025,222 | |||||||||
2,772,083 | |||||||||||
Medical - HMO—14.0% | |||||||||||
33,940 | Aetna, Inc. | 1,002,927 | |||||||||
30,158 | Healthspring, Inc.* | 530,781 | |||||||||
13,244 | Magellan Health Services, Inc.* | 559,029 | |||||||||
30,061 | UnitedHealth Group, Inc. | 911,149 | |||||||||
3,003,886 | |||||||||||
Medical - Hospitals—12.5% | |||||||||||
16,201 | Community Health Systems, Inc.* | 661,973 | |||||||||
76,156 | Health Management Associates, Inc., Class A* | 709,774 | |||||||||
105,346 | Tenet Healthcare Corp.* | 658,412 | |||||||||
17,898 | Universal Health Services, Inc., Class B | 664,374 | |||||||||
2,694,533 | |||||||||||
Medical - Nursing Homes—8.4% | |||||||||||
33,324 | Ensign Group, Inc. (The) | 578,505 | |||||||||
31,869 | Kindred Healthcare, Inc.* | 568,543 | |||||||||
31,669 | Odyssey HealthCare, Inc.* | 659,665 | |||||||||
1,806,713 | |||||||||||
Medical - Outpatient/Home Medicine—13.8% | |||||||||||
9,629 | Amedisys, Inc.* | 554,438 | |||||||||
26,871 | AmSurg Corp.* | 556,767 | |||||||||
20,037 | Gentiva Health Services, Inc.* | 574,661 | |||||||||
18,444 | LHC Group, Inc.* | 628,940 | |||||||||
13,824 | Lincare Holdings, Inc.* | 645,443 | |||||||||
2,960,249 | |||||||||||
Medical - Wholesale Drug Distribution—15.2% | |||||||||||
36,300 | AmerisourceBergen Corp. | 1,119,855 | |||||||||
29,963 | Cardinal Health, Inc. | 1,039,416 | |||||||||
17,207 | McKesson Corp. | 1,115,186 | |||||||||
3,274,457 | |||||||||||
Pharmacy Services—7.1% | |||||||||||
16,096 | Medco Health Solutions, Inc.* | 948,376 | |||||||||
20,508 | Omnicare, Inc. | 569,918 | |||||||||
1,518,294 |
Number of Shares | Value | ||||||||||
Common Stocks (Continued) | |||||||||||
Physical Therapy/Rehabilitation Centers—5.7% | |||||||||||
32,090 | Healthsouth Corp.* | $ | 656,561 | ||||||||
19,942 | RehabCare Group, Inc.* | 568,746 | |||||||||
1,225,307 | |||||||||||
Physician Practice Management—2.6% | |||||||||||
10,378 | MEDNAX, Inc.* | 570,167 | |||||||||
Total Common Stocks (Cost $19,386,293) | 21,522,274 | ||||||||||
Money Market Fund—0.1% | |||||||||||
32,189 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $32,189) | 32,189 | |||||||||
Total Investments (Cost $19,418,482)—100.2% | 21,554,463 | ||||||||||
Liabilities in excess of other assets—(0.2%) | (44,691 | ) | |||||||||
Net Assets—100.0% | $ | 21,509,772 |
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
43
Schedule of Investments
PowerShares Dynamic Insurance Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks—100.1% | |||||||||||
Insurance Brokers—2.9% | |||||||||||
11,654 | Erie Indemnity Co., Class A | $ | 539,697 | ||||||||
Investment Management/Advisor Services—3.3% | |||||||||||
40,186 | National Financial Partners Corp.* | 618,462 | |||||||||
Life/Health Insurance—21.9% | |||||||||||
17,119 | Aflac, Inc. | 872,384 | |||||||||
52,470 | American Equity Investment Life Holding Co. | 551,985 | |||||||||
92,718 | Conseco, Inc.* | 547,036 | |||||||||
22,723 | FBL Financial Group, Inc., Class A | 587,163 | |||||||||
10,743 | StanCorp Financial Group, Inc. | 483,005 | |||||||||
9,930 | Torchmark Corp. | 531,652 | |||||||||
32,043 | Universal American Financial Corp.* | 491,860 | |||||||||
4,065,085 | |||||||||||
Multi-line Insurance—23.3% | |||||||||||
27,088 | Allstate Corp. (The) | 884,965 | |||||||||
17,848 | American Financial Group, Inc. | 525,267 | |||||||||
34,736 | Hartford Financial Services Group, Inc. (The) | 992,407 | |||||||||
23,218 | Loews Corp. | 864,638 | |||||||||
23,262 | MetLife, Inc. | 1,060,282 | |||||||||
4,327,559 | |||||||||||
Property/Casualty Insurance—46.0% | |||||||||||
26,829 | AMERISAFE, Inc.* | 458,776 | |||||||||
32,585 | AmTrust Financial Services, Inc. | 444,134 | |||||||||
16,776 | Chubb Corp. (The) | 886,947 | |||||||||
28,644 | CNA Surety Corp.* | 480,360 | |||||||||
35,033 | Employers Holdings, Inc. | 577,344 | |||||||||
14,326 | First American Corp. (The) | 495,250 | |||||||||
16,550 | HCC Insurance Holdings, Inc. | 449,994 | |||||||||
65,217 | Meadowbrook Insurance Group, Inc. | 515,214 | |||||||||
30,437 | OneBeacon Insurance Group Ltd., Class A | 493,688 | |||||||||
8,660 | ProAssurance Corp.* | 527,827 | |||||||||
49,359 | Progressive Corp. (The) | 991,622 | |||||||||
12,432 | Safety Insurance Group, Inc. | 463,589 | |||||||||
28,484 | Selective Insurance Group, Inc. | 475,968 | |||||||||
20,278 | Tower Group, Inc. | 467,611 | |||||||||
16,097 | Travelers Cos., Inc. (The) | 816,762 | |||||||||
8,545,086 | |||||||||||
Reinsurance—2.7% | |||||||||||
9,715 | Reinsurance Group of America, Inc. | 501,585 | |||||||||
Total Common Stocks (Cost $16,848,828) | 18,597,474 |
Number of Shares | Value | ||||||||||
Money Market Fund—0.2% | |||||||||||
42,783 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $42,783) | $ | 42,783 | ||||||||
Total Investments (Cost $16,891,611)—100.3% | 18,640,257 | ||||||||||
Liabilities in excess of other assets—(0.3%) | (48,605 | ) | |||||||||
Net Assets—100.0% | $ | 18,591,652 |
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
44
Schedule of Investments
PowerShares Dynamic Leisure and Entertainment Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks—100.0% | |||||||||||
Commercial Services—2.7% | |||||||||||
195,929 | Global Cash Access Holdings, Inc.* | $ | 1,700,664 | ||||||||
Entertainment—13.5% | |||||||||||
35,436 | Bally Technologies, Inc.* | 1,634,308 | |||||||||
91,091 | Cinemark Holdings, Inc. | 1,663,322 | |||||||||
83,622 | International Game Technology | 1,762,752 | |||||||||
54,949 | International Speedway Corp., Class A | 1,679,241 | |||||||||
255,670 | Warner Music Group Corp.* | 1,751,340 | |||||||||
8,490,963 | |||||||||||
Internet—4.6% | |||||||||||
120,971 | Expedia, Inc. | 2,856,125 | |||||||||
Leisure Time—5.5% | |||||||||||
102,192 | Interval Leisure Group, Inc.* | 1,511,419 | |||||||||
38,692 | WMS Industries, Inc.* | 1,935,374 | |||||||||
3,446,793 | |||||||||||
Lodging—8.5% | |||||||||||
99,239 | Marriott International, Inc., Class A | 3,648,026 | |||||||||
63,841 | Wyndham Worldwide Corp. | 1,711,577 | |||||||||
5,359,603 | |||||||||||
Media—20.5% | |||||||||||
112,974 | CBS Corp., Class B | 1,831,309 | |||||||||
67,974 | Scripps Networks Interactive, Inc., Class A | 3,081,941 | |||||||||
90,750 | Viacom, Inc., Class B* | 3,206,197 | |||||||||
86,127 | Walt Disney Co. (The) | 3,172,919 | |||||||||
86,070 | World Wrestling Entertainment, Inc., Class A | 1,570,777 | |||||||||
12,863,143 | |||||||||||
Retail—44.7% | |||||||||||
4,282 | Biglari Holdings, Inc.* | 1,675,333 | |||||||||
51,473 | Bob Evans Farms, Inc. | 1,592,060 | |||||||||
81,037 | Brinker International, Inc. | 1,500,805 | |||||||||
41,875 | CEC Entertainment, Inc.* | 1,635,219 | |||||||||
62,048 | Cheesecake Factory, Inc. (The)* | 1,685,844 | |||||||||
33,599 | Cracker Barrel Old Country Store, Inc. | 1,658,783 | |||||||||
36,190 | Darden Restaurants, Inc. | 1,619,502 | |||||||||
67,750 | HSN, Inc.* | 2,041,307 | |||||||||
42,133 | McDonald's Corp. | 2,974,168 | |||||||||
20,158 | Panera Bread Co., Class A* | 1,571,115 | |||||||||
60,124 | Papa John's International, Inc.* | 1,647,398 | |||||||||
181,401 | Ruby Tuesday, Inc.* | 2,029,877 | |||||||||
117,443 | Starbucks Corp. | 3,051,169 | |||||||||
79,792 | Yum! Brands, Inc. | 3,384,777 | |||||||||
28,067,357 | |||||||||||
Total Common Stocks (Cost $56,521,248) | 62,784,648 |
Number of Shares | Value | ||||||||||
Money Market Fund—0.0% | |||||||||||
40,844 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $40,844) | $ | 40,844 | ||||||||
Total Investments (Cost $56,562,092)—100.0% | 62,825,492 | ||||||||||
Liabilities in excess of other assets—(0.0%) | (31,113 | ) | |||||||||
Net Assets—100.0% | $ | 62,794,379 |
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
45
Schedule of Investments
PowerShares Dynamic Media Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks—100.0% | |||||||||||
Advertising Agencies—5.6% | |||||||||||
398,736 | Interpublic Group of Cos., Inc. (The)* | $ | 3,552,738 | ||||||||
81,667 | Omnicom Group, Inc. | 3,483,914 | |||||||||
7,036,652 | |||||||||||
Advertising Sales—2.9% | |||||||||||
99,417 | Lamar Advertising Co., Class A* | 3,700,301 | |||||||||
Broadcast Services/Program—2.7% | |||||||||||
75,564 | Scripps Networks Interactive, Inc., Class A | 3,426,072 | |||||||||
Cable/Satellite TV—12.5% | |||||||||||
333,505 | Comcast Corp., Class A | 6,583,389 | |||||||||
161,963 | DIRECTV, Class A* | 5,867,919 | |||||||||
149,754 | DISH Network Corp., Class A | 3,317,051 | |||||||||
15,768,359 | |||||||||||
Computer Services—2.3% | |||||||||||
57,738 | IHS, Inc., Class A* | 2,925,584 | |||||||||
Direct Marketing—2.9% | |||||||||||
251,518 | Harte-Hanks, Inc. | 3,621,859 | |||||||||
Multimedia—28.0% | |||||||||||
392,460 | E.W. Scripps Co., Class A* | 4,293,512 | |||||||||
160,305 | McGraw-Hill Cos., Inc. (The) | 5,405,485 | |||||||||
410,082 | News Corp., Class A | 6,323,465 | |||||||||
188,795 | Time Warner, Inc. | 6,245,339 | |||||||||
184,913 | Viacom, Inc., Class B* | 6,532,976 | |||||||||
175,504 | Walt Disney Co. (The) | 6,465,567 | |||||||||
35,266,344 | |||||||||||
Music—2.8% | |||||||||||
521,013 | Warner Music Group Corp.* | 3,568,939 | |||||||||
Printing - Commercial—3.0% | |||||||||||
116,718 | Valassis Communications, Inc.* | 3,815,511 | |||||||||
Publishing - Books—4.6% | |||||||||||
71,233 | John Wiley & Sons, Inc., Class A | 3,011,019 | |||||||||
101,723 | Scholastic Corp. | 2,747,538 | |||||||||
5,758,557 | |||||||||||
Publishing - Newspapers—7.5% | |||||||||||
197,398 | Gannett Co., Inc. | 3,359,714 | |||||||||
620,455 | McClatchy Co. (The), Class A* | 3,381,480 | |||||||||
273,366 | New York Times Co. (The), Class A* | 2,711,790 | |||||||||
9,452,984 | |||||||||||
Radio—6.2% | |||||||||||
294,051 | Entercom Communications Corp., Class A* | 4,281,383 | |||||||||
2,931,947 | Sirius XM Radio, Inc.* | 3,459,697 | |||||||||
7,741,080 |
Number of Shares | Value | ||||||||||
Common Stocks (Continued) | |||||||||||
Retail - Discount—3.3% | |||||||||||
138,059 | HSN, Inc.* | $ | 4,159,718 | ||||||||
Schools—2.9% | |||||||||||
7,123 | Washington Post Co. (The), Class B | 3,612,501 | |||||||||
Telecommunication Services—3.2% | |||||||||||
272,356 | RCN Corp.* | 3,998,186 | |||||||||
Television—3.0% | |||||||||||
230,214 | CBS Corp., Class B | 3,731,769 | |||||||||
Web Portals/ISP—6.6% | |||||||||||
120,685 | AOL, Inc.* | 2,819,202 | |||||||||
10,417 | Google, Inc., Class A* | 5,473,508 | |||||||||
8,292,710 | |||||||||||
Total Common Stocks (Cost $109,702,444) | 125,877,126 | ||||||||||
Money Market Fund—0.1% | |||||||||||
72,119 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $72,119) | 72,119 | |||||||||
Total Investments (Cost $109,774,563)—100.1% | 125,949,245 | ||||||||||
Liabilities in excess of other assets—(0.1%) | (74,181 | ) | |||||||||
Net Assets—100.0% | $ | 125,875,064 |
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
46
Schedule of Investments
PowerShares Dynamic Networking Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks—100.1% | |||||||||||
Computers—2.4% | |||||||||||
79,254 | Netscout Systems, Inc.* | $ | 1,150,768 | ||||||||
Electrical Components & Equipment—2.7% | |||||||||||
56,543 | Molex, Inc. | 1,267,129 | |||||||||
Electronics—5.0% | |||||||||||
50,899 | Amphenol Corp., Class A | 2,352,043 | |||||||||
Internet—16.8% | |||||||||||
20,722 | F5 Networks, Inc.* | 1,418,006 | |||||||||
53,414 | McAfee, Inc.* | 1,856,136 | |||||||||
144,358 | SonicWALL, Inc.* | 1,462,347 | |||||||||
49,501 | Sourcefire, Inc.* | 1,107,337 | |||||||||
128,093 | Symantec Corp.* | 2,148,120 | |||||||||
7,991,946 | |||||||||||
Semiconductors—15.0% | |||||||||||
67,686 | Broadcom Corp., Class A | 2,334,490 | |||||||||
91,048 | Emulex Corp.* | 1,069,814 | |||||||||
139,314 | PMC - Sierra, Inc.* | 1,232,929 | |||||||||
63,534 | QLogic Corp.* | 1,230,654 | |||||||||
25,443 | Silicon Laboratories, Inc.* | 1,230,169 | |||||||||
7,098,056 | |||||||||||
Software—12.9% | |||||||||||
49,287 | Citrix Systems, Inc.* | 2,316,489 | |||||||||
61,475 | Solarwinds, Inc.* | 1,140,976 | |||||||||
42,817 | VMware, Inc., Class A* | 2,639,240 | |||||||||
6,096,705 | |||||||||||
Telecommunications—45.3% | |||||||||||
69,363 | Acme Packet, Inc.* | 1,813,149 | |||||||||
182,384 | ADC Telecommunications, Inc.* | 1,460,896 | |||||||||
49,459 | ADTRAN, Inc. | 1,324,017 | |||||||||
112,046 | Arris Group, Inc.* | 1,377,045 | |||||||||
32,219 | Atheros Communications, Inc.* | 1,251,386 | |||||||||
87,131 | Cisco Systems, Inc.* | 2,345,567 | |||||||||
107,765 | JDS Uniphase Corp.* | 1,399,867 | |||||||||
75,764 | Juniper Networks, Inc.* | 2,152,455 | |||||||||
45,613 | NETGEAR, Inc.* | 1,234,288 | |||||||||
119,207 | Oclaro, Inc.* | 1,827,446 | |||||||||
74,891 | Oplink Communications, Inc.* | 1,131,603 | |||||||||
542,869 | Sonus Networks, Inc.* | 1,406,031 | |||||||||
69,993 | Tekelec* | 1,268,973 | |||||||||
167,339 | Tellabs, Inc. | 1,519,438 | |||||||||
21,512,161 | |||||||||||
Total Common Stocks (Cost $39,872,999) | 47,468,808 |
Number of Shares | Value | ||||||||||
Money Market Fund—0.0% | |||||||||||
19,641 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $19,641) | $ | 19,641 | ||||||||
Total Investments (Cost $39,892,640)—100.1% | 47,488,449 | ||||||||||
Liabilities in excess of other assets—(0.1%) | (51,444 | ) | |||||||||
Net Assets—100.0% | $ | 47,437,005 |
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
47
Schedule of Investments
PowerShares Dynamic Oil & Gas Services Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks—100.1% | |||||||||||
Oil & Gas Drilling—20.4% | |||||||||||
125,145 | Atwood Oceanics, Inc.* | $ | 4,556,529 | ||||||||
189,463 | Helmerich & Payne, Inc. | 7,695,987 | |||||||||
1,144,124 | Hercules Offshore, Inc.* | 4,530,731 | |||||||||
816,274 | Parker Drilling Co.* | 4,513,995 | |||||||||
295,046 | �� | Rowan Cos., Inc.* | 8,792,371 | ||||||||
96,335 | Unit Corp.* | 4,601,923 | |||||||||
34,691,536 | |||||||||||
Oil Field Machinery & Equipment—25.3% | |||||||||||
186,656 | Cameron International Corp.* | 7,365,446 | |||||||||
299,965 | Complete Production Services, Inc.* | 4,526,472 | |||||||||
135,478 | Dresser-Rand Group, Inc.* | 4,779,664 | |||||||||
76,519 | Dril-Quip, Inc.* | 4,432,746 | |||||||||
136,670 | FMC Technologies, Inc.* | 9,251,192 | |||||||||
57,327 | Lufkin Industries, Inc. | 4,880,247 | |||||||||
176,605 | National Oilwell Varco, Inc. | 7,775,918 | |||||||||
43,011,685 | |||||||||||
Oil - Field Services—45.2% | |||||||||||
593,970 | Cal Dive International, Inc.* | 3,896,443 | |||||||||
68,610 | CARBO Ceramics, Inc. | 5,025,683 | |||||||||
184,069 | Exterran Holdings, Inc.* | 5,365,611 | |||||||||
620,367 | Global Industries Ltd.* | 4,156,459 | |||||||||
254,629 | Halliburton Co. | 7,804,379 | |||||||||
809,957 | Newpark Resources, Inc.* | 5,410,513 | |||||||||
126,992 | Oceaneering International, Inc.* | 8,317,976 | |||||||||
97,333 | Oil States International, Inc.* | 4,702,157 | |||||||||
338,796 | RPC, Inc. | 4,624,565 | |||||||||
125,652 | Schlumberger Ltd. | 8,974,066 | |||||||||
54,823 | SEACOR Holdings, Inc.* | 4,614,452 | |||||||||
202,590 | Superior Energy Services, Inc.* | 5,482,085 | |||||||||
415,420 | TETRA Technologies, Inc.* | 5,105,512 | |||||||||
277,323 | Willbros Group, Inc.* | 3,480,404 | |||||||||
76,960,305 | |||||||||||
Seismic Data Collection—3.2% | |||||||||||
914,292 | ION Geophysical Corp.* | 5,494,895 | |||||||||
Transportation - Marine—3.4% | |||||||||||
170,227 | Gulfmark Offshore, Inc., Class A* | 5,867,725 | |||||||||
Transportation - Services—2.6% | |||||||||||
115,637 | Bristow Group, Inc.* | 4,476,308 | |||||||||
Total Common Stocks (Cost $145,882,107) | 170,502,454 |
Number of Shares | Value | ||||||||||
Money Market Fund—0.0% | |||||||||||
11,625 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $11,625) | $ | 11,625 | ||||||||
Total Investments (Cost $145,893,732)—100.1% | 170,514,079 | ||||||||||
Liabilities in excess of other assets—(0.1%) | (156,343 | ) | |||||||||
Net Assets—100.0% | $ | 170,357,736 |
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
48
Schedule of Investments
PowerShares Dynamic Pharmaceuticals Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks—100.0% | |||||||||||
Consumer Products - Miscellaneous—3.2% | |||||||||||
190,858 | Prestige Brands Holdings, Inc.* | $ | 1,858,957 | ||||||||
Medical Products—9.9% | |||||||||||
26,921 | Baxter International, Inc. | 1,271,209 | |||||||||
29,287 | Hospira, Inc.* | 1,575,348 | |||||||||
44,600 | Johnson & Johnson | 2,867,780 | |||||||||
5,714,337 | |||||||||||
Medical - Biomedical/Genetics—19.3% | |||||||||||
49,633 | Amgen, Inc.* | 2,846,949 | |||||||||
27,860 | Biogen Idec, Inc.* | 1,483,545 | |||||||||
25,750 | Celgene Corp.* | 1,595,213 | |||||||||
26,793 | Genzyme Corp.* | 1,426,459 | |||||||||
59,015 | Gilead Sciences, Inc.* | 2,341,125 | |||||||||
199,039 | Medicines Co. (The)* | 1,460,946 | |||||||||
11,154,237 | |||||||||||
Medical - Drugs—49.7% | |||||||||||
51,764 | Abbott Laboratories | 2,648,246 | |||||||||
26,230 | Allergan, Inc. | 1,670,589 | |||||||||
114,637 | Bristol-Myers Squibb Co. | 2,899,170 | |||||||||
22,318 | Cephalon, Inc.* | 1,432,816 | |||||||||
81,822 | Eli Lilly & Co. | 2,861,315 | |||||||||
67,367 | Endo Pharmaceuticals Holdings, Inc.* | 1,475,337 | |||||||||
51,291 | Forest Laboratories, Inc.* | 1,398,193 | |||||||||
136,230 | King Pharmaceuticals, Inc.* | 1,335,054 | |||||||||
68,115 | Medicis Pharmaceutical Corp., Class A | 1,728,759 | |||||||||
76,187 | Merck & Co., Inc. | 2,669,592 | |||||||||
160,100 | Pfizer, Inc. | 2,676,872 | |||||||||
53,662 | Salix Pharmaceuticals Ltd.* | 2,157,212 | |||||||||
41,178 | Valeant Pharmaceuticals International* | 1,853,010 | |||||||||
182,453 | Vivus, Inc.* | 1,859,196 | |||||||||
28,665,361 | |||||||||||
Medical - Generic Drugs—14.9% | |||||||||||
99,454 | Impax Laboratories, Inc.* | 1,800,117 | |||||||||
71,819 | Mylan, Inc.* | 1,582,173 | |||||||||
61,231 | Par Pharmaceutical Cos., Inc.* | 1,661,809 | |||||||||
30,917 | Perrigo Co. | 1,886,865 | |||||||||
38,518 | Watson Pharmaceuticals, Inc.* | 1,649,341 | |||||||||
8,580,305 | |||||||||||
Therapeutics—3.0% | |||||||||||
247,992 | Inspire Pharmaceuticals, Inc.* | 1,698,745 | |||||||||
Total Common Stocks (Cost $58,351,367) | 57,671,942 |
Number of Shares | Value | ||||||||||
Money Market Fund—0.0% | |||||||||||
16,592 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $16,592) | $ | 16,592 | ||||||||
Total Investments (Cost $58,367,959)—100.0% | 57,688,534 | ||||||||||
Liabilities in excess of other assets—(0.0%) | (26,555 | ) | |||||||||
Net Assets—100.0% | $ | 57,661,979 |
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
49
Schedule of Investments
PowerShares Dynamic Retail Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks—100.0% | |||||||||||
Distribution/Wholesale—2.6% | |||||||||||
10,124 | United Stationers, Inc.* | $ | 619,791 | ||||||||
Rental Auto/Equipment—3.5% | |||||||||||
19,252 | Dollar Thrifty Automotive Group, Inc.* | 846,895 | |||||||||
Retail - Apparel/Shoe—38.0% | |||||||||||
15,138 | Children's Place Retail Stores, Inc. (The)* | 693,623 | |||||||||
25,593 | Collective Brands, Inc.* | 600,156 | |||||||||
23,261 | Dress Barn, Inc. (The)* | 643,865 | |||||||||
21,470 | DSW, Inc., Class A* | 648,394 | |||||||||
49,309 | Gap, Inc. (The) | 1,219,412 | |||||||||
24,168 | Genesco, Inc.* | 804,553 | |||||||||
13,741 | J.Crew Group, Inc.* | 638,544 | |||||||||
49,878 | Limited Brands, Inc. | 1,336,730 | |||||||||
27,078 | Men's Wearhouse, Inc. (The) | 639,853 | |||||||||
11,819 | Ross Stores, Inc. | 661,864 | |||||||||
70,788 | Stein Mart, Inc.* | 671,070 | |||||||||
17,953 | Urban Outfitters, Inc.* | 673,417 | |||||||||
9,231,481 | |||||||||||
Retail - Automobile—5.7% | |||||||||||
49,723 | Asbury Automotive Group, Inc.* | 773,193 | |||||||||
56,146 | Sonic Automotive, Inc., Class A* | 599,639 | |||||||||
1,372,832 | |||||||||||
Retail - Bedding—4.8% | |||||||||||
25,476 | Bed Bath & Beyond, Inc.* | 1,170,877 | |||||||||
Retail - Discount—7.1% | |||||||||||
17,268 | Big Lots, Inc.* | 659,637 | |||||||||
19,612 | Wal-Mart Stores, Inc. | 1,052,184 | |||||||||
1,711,821 | |||||||||||
Retail - Drug Store—4.4% | |||||||||||
30,082 | Walgreen Co. | 1,057,382 | |||||||||
Retail - Fabric Store—2.8% | |||||||||||
15,276 | Jo-Ann Stores, Inc.* | 673,977 | |||||||||
Retail - Home Furnishings—6.4% | |||||||||||
34,920 | Kirkland's, Inc.* | 777,668 | |||||||||
94,650 | Pier 1 Imports, Inc.* | 783,702 | |||||||||
1,561,370 | |||||||||||
Retail - Major Department Store—9.7% | |||||||||||
28,700 | Nordstrom, Inc. | 1,186,171 | |||||||||
25,469 | TJX Cos., Inc. (The) | 1,180,233 | |||||||||
2,366,404 | |||||||||||
Retail - Office Supplies—4.0% | |||||||||||
41,158 | Staples, Inc. | 968,448 |
Number of Shares | Value | ||||||||||
Common Stocks (Continued) | |||||||||||
Retail - Regional Department Store—5.6% | |||||||||||
64,684 | Retail Ventures, Inc.* | $ | 699,881 | ||||||||
43,479 | Stage Stores, Inc. | 663,055 | |||||||||
1,362,936 | |||||||||||
Retail - Sporting Goods—2.6% | |||||||||||
37,850 | Big 5 Sporting Goods Corp. | 641,558 | |||||||||
Transportation - Equipment & Leasing—2.8% | |||||||||||
11,030 | Amerco, Inc.* | 688,824 | |||||||||
Total Common Stocks (Cost $25,132,354) | 24,274,596 | ||||||||||
Money Market Fund—0.2% | |||||||||||
36,352 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $36,352) | 36,352 | |||||||||
Total Investments (Cost $25,168,706)—100.2% | 24,310,948 | ||||||||||
Liabilities in excess of other assets—(0.2%) | (38,130 | ) | |||||||||
Net Assets—100.0% | $ | 24,272,818 |
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
50
Schedule of Investments
PowerShares Dynamic Semiconductors Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks—100.1% | |||||||||||
Electronic Components - Miscellaneous—2.5% | |||||||||||
69,099 | Vishay Intertechnology, Inc.* | $ | 719,320 | ||||||||
Electronic Components - Semiconductors—52.2% | |||||||||||
53,153 | Altera Corp. | 1,347,960 | |||||||||
117,650 | Amkor Technology, Inc.* | 887,081 | |||||||||
41,459 | Broadcom Corp., Class A | 1,429,921 | |||||||||
68,632 | Fairchild Semiconductor International, Inc.* | 770,051 | |||||||||
63,247 | Intel Corp. | 1,443,929 | |||||||||
131,405 | LSI Corp.* | 791,058 | |||||||||
26,175 | Microchip Technology, Inc. | 764,572 | |||||||||
143,321 | Micron Technology, Inc.* | 1,340,051 | |||||||||
48,912 | National Semiconductor Corp. | 722,919 | |||||||||
80,155 | NVIDIA Corp.* | 1,260,037 | |||||||||
88,977 | ON Semiconductor Corp.* | 706,478 | |||||||||
85,331 | PMC - Sierra, Inc.* | 755,179 | |||||||||
53,261 | Texas Instruments, Inc. | 1,385,319 | |||||||||
50,272 | Xilinx, Inc. | 1,296,012 | |||||||||
14,900,567 | |||||||||||
Lasers - Systems/Components—2.7% | |||||||||||
22,615 | Cymer, Inc.* | 772,302 | |||||||||
Networking Products—2.7% | |||||||||||
19,736 | Atheros Communications, Inc.* | 766,546 | |||||||||
Semiconductor Components - Integrated Circuits—13.3% | |||||||||||
44,408 | Analog Devices, Inc. | 1,329,132 | |||||||||
16,969 | Hittite Microwave Corp.* | 870,170 | |||||||||
71,906 | Micrel, Inc. | 839,143 | |||||||||
19,698 | Power Integrations, Inc. | 757,979 | |||||||||
3,796,424 | |||||||||||
Semiconductor Equipment—20.7% | |||||||||||
81,974 | Brooks Automation, Inc.* | 796,787 | |||||||||
158,096 | Entegris, Inc.* | 978,614 | |||||||||
107,641 | Kulicke & Soffa Industries, Inc.* | 882,656 | |||||||||
20,887 | Lam Research Corp.* | 846,968 | |||||||||
227,737 | LTX-Credence Corp.* | 772,029 | |||||||||
70,897 | Teradyne, Inc.* | 867,070 | |||||||||
23,544 | Varian Semiconductor Equipment Associates, Inc.* | 775,540 | |||||||||
5,919,664 | |||||||||||
Wireless Equipment—6.0% | |||||||||||
27,614 | InterDigital, Inc.* | 764,079 | |||||||||
168,233 | RF Micro Devices, Inc.* | 945,470 | |||||||||
1,709,549 | |||||||||||
Total Common Stocks (Cost $26,360,533) | 28,584,372 |
Number of Shares | Value | ||||||||||
Money Market Fund—0.1% | |||||||||||
36,256 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $36,256) | $ | 36,256 | ||||||||
Total Investments (Cost $26,396,789)—100.2% | 28,620,628 | ||||||||||
Liabilities in excess of other assets—(0.2%) | (47,208 | ) | |||||||||
Net Assets—100.0% | $ | 28,573,420 |
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
51
Schedule of Investments
PowerShares Dynamic Software Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks—100.1% | |||||||||||
Applications Software—13.0% | |||||||||||
220,777 | Deltek, Inc.* | $ | 1,737,515 | ||||||||
108,603 | Microsoft Corp. | 3,316,736 | |||||||||
60,592 | Progress Software Corp.* | 1,954,092 | |||||||||
60,527 | Red Hat, Inc.* | 1,807,941 | |||||||||
8,816,284 | |||||||||||
Computer Aided Design—5.3% | |||||||||||
38,709 | ANSYS, Inc.* | 1,741,905 | |||||||||
97,516 | Parametric Technology Corp.* | 1,812,822 | |||||||||
3,554,727 | |||||||||||
Computer Services—5.6% | |||||||||||
44,177 | DST Systems, Inc. | 1,875,314 | |||||||||
67,184 | Manhattan Associates, Inc.* | 1,925,493 | |||||||||
3,800,807 | |||||||||||
Computer Software—2.5% | |||||||||||
72,927 | Blackbaud, Inc. | 1,680,967 | |||||||||
Computers - Integrated Systems—8.3% | |||||||||||
75,188 | Jack Henry & Associates, Inc. | 1,918,798 | |||||||||
56,517 | MICROS Systems, Inc.* | 2,100,171 | |||||||||
55,684 | Teradata Corp.* | 1,618,734 | |||||||||
5,637,703 | |||||||||||
Consulting Services—2.7% | |||||||||||
29,483 | MAXIMUS, Inc. | 1,825,293 | |||||||||
Data Processing/Management—10.0% | |||||||||||
84,382 | CSG Systems International, Inc.* | 1,917,159 | |||||||||
73,944 | Fair Isaac Corp. | 1,557,261 | |||||||||
64,536 | Fiserv, Inc.* | 3,297,144 | |||||||||
6,771,564 | |||||||||||
Enterprise Software/Services—25.0% | |||||||||||
84,488 | BMC Software, Inc.* | 3,325,448 | |||||||||
138,336 | CA, Inc. | 3,155,444 | |||||||||
198,105 | Epicor Software Corp.* | 1,818,604 | |||||||||
282,019 | Lawson Software, Inc.* | 2,188,467 | |||||||||
19,143 | MicroStrategy, Inc., Class A* | 1,466,354 | |||||||||
126,271 | Oracle Corp. | 3,262,843 | |||||||||
38,245 | Sybase, Inc.* | 1,659,068 | |||||||||
16,876,228 | |||||||||||
Industrial Audio & Video Products—6.0% | |||||||||||
58,431 | Dolby Laboratories, Inc., Class A* | 4,015,378 | |||||||||
Internet Infrastructure Software—3.1% | |||||||||||
185,143 | TIBCO Software, Inc.* | 2,110,630 | |||||||||
Internet Security—4.7% | |||||||||||
188,073 | Symantec Corp.* | 3,153,984 | |||||||||
Software Tools—5.7% | |||||||||||
62,868 | VMware, Inc., Class A* | 3,875,184 |
Number of Shares | Value | ||||||||||
Common Stocks (Continued) | |||||||||||
Transactional Software—5.6% | |||||||||||
106,844 | Bottomline Technologies, Inc.* | $ | 1,859,086 | ||||||||
49,699 | Solera Holdings, Inc. | 1,931,800 | |||||||||
3,790,886 | |||||||||||
Web Portals/ISP—2.6% | |||||||||||
168,428 | InfoSpace, Inc.* | 1,763,441 | |||||||||
Total Common Stocks (Cost $59,393,059) | 67,673,076 | ||||||||||
Money Market Fund—0.0% | |||||||||||
17,717 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $17,717) | 17,717 | |||||||||
Total Investments (Cost $59,410,776)—100.1% | 67,690,793 | ||||||||||
Liabilities in excess of other assets—(0.1%) | (64,521 | ) | |||||||||
Net Assets—100.0% | $ | 67,626,272 |
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
52
This page intentionally left blank
Statements of Assets and Liabilities
April 30, 2010
PowerShares Dynamic Banking Portfolio | PowerShares Dynamic Biotechnology & Genome Portfolio | PowerShares Dynamic Building & Construction Portfolio | PowerShares Dynamic Energy Exploration & Production Portfolio | PowerShares Dynamic Food & Beverage Portfolio | PowerShares Dynamic Healthcare Services Portfolio | PowerShares Dynamic Insurance Portfolio | PowerShares Dynamic Leisure and Entertainment Portfolio | ||||||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||||||||||
Investments, at value | $ | 25,463,639 | $ | 214,582,426 | $ | 50,162,237 | $ | 59,989,827 | $ | 72,786,745 | $ | 21,554,463 | $ | 18,640,257 | $ | 62,825,492 | |||||||||||||||||||
Cash | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Receivables: | |||||||||||||||||||||||||||||||||||
Investments sold | 701,665 | — | — | 66,200 | — | — | — | — | |||||||||||||||||||||||||||
Dividends | 22,105 | 7 | 12,920 | 3,959 | 91,437 | 3 | 4 | 26,678 | |||||||||||||||||||||||||||
Expense waivers | 3,734 | — | 6,331 | 4,818 | 1,815 | 6,443 | 10,208 | 5,084 | |||||||||||||||||||||||||||
Shares sold | — | — | — | — | — | — | — | 846,168 | |||||||||||||||||||||||||||
Other assets | 3,000 | 3,000 | 3,000 | 3,002 | 3,000 | 3,000 | 3,002 | 3,000 | |||||||||||||||||||||||||||
Total Assets | 26,194,143 | 214,585,433 | 50,184,488 | 60,067,806 | 72,882,997 | 21,563,909 | 18,653,471 | 63,706,422 | |||||||||||||||||||||||||||
LIABILITES: | |||||||||||||||||||||||||||||||||||
Due to custodian | 6,063 | 6,649 | 6,064 | 6,465 | 6,064 | 6,064 | 6,063 | 6,559 | |||||||||||||||||||||||||||
Payables: | |||||||||||||||||||||||||||||||||||
Shares repurchased | 700,853 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||
Investments purchased | — | — | — | — | — | — | — | 845,654 | |||||||||||||||||||||||||||
Expense recapture | — | 14,721 | — | — | — | — | — | — | |||||||||||||||||||||||||||
Accrued advisory fees | 10,340 | 88,141 | 20,313 | 24,911 | 30,431 | 9,022 | 7,758 | 21,793 | |||||||||||||||||||||||||||
Accrued expenses | 72,998 | 85,413 | 43,738 | 53,836 | 51,819 | 39,051 | 47,998 | 38,037 | |||||||||||||||||||||||||||
Total Liabilities | 790,254 | 194,924 | 70,115 | 85,212 | 88,314 | 54,137 | 61,819 | 912,043 | |||||||||||||||||||||||||||
NET ASSETS | $ | 25,403,889 | $ | 214,390,509 | $ | 50,114,373 | $ | 59,982,594 | $ | 72,794,683 | $ | 21,509,772 | $ | 18,591,652 | $ | 62,794,379 | |||||||||||||||||||
NET ASSETS CONSIST OF: | |||||||||||||||||||||||||||||||||||
Shares of beneficial interest | $ | 70,403,802 | $ | 314,013,884 | $ | 53,121,651 | $ | 85,561,781 | $ | 86,297,093 | $ | 31,999,433 | $ | 28,560,242 | $ | 66,876,939 | |||||||||||||||||||
Undistributed net investment income (loss) | (4,517 | ) | (6,773 | ) | 6,819 | (4,673 | ) | 179,692 | (3,263 | ) | 26,643 | 20,564 | |||||||||||||||||||||||
Accumulated net realized gain (loss) on investments | (48,487,627 | ) | (123,499,043 | ) | (12,916,107 | ) | (33,022,544 | ) | (21,571,977 | ) | (12,622,379 | ) | (11,743,879 | ) | (10,366,524 | ) | |||||||||||||||||||
Net unrealized appreciation (depreciation) on investments | 3,492,231 | 23,882,441 | 9,902,010 | 7,448,030 | 7,889,875 | 2,135,981 | 1,748,646 | 6,263,400 | |||||||||||||||||||||||||||
Net Assets | $ | 25,403,889 | $ | 214,390,509 | $ | 50,114,373 | $ | 59,982,594 | $ | 72,794,683 | $ | 21,509,772 | $ | 18,591,652 | $ | 62,794,379 | |||||||||||||||||||
Shares outstanding (unlimited amount authorized, $0.01 par value) | 1,800,000 | 10,900,000 | 3,600,000 | 3,250,000 | 4,550,000 | 1,000,000 | 1,200,000 | 3,800,000 | |||||||||||||||||||||||||||
Net asset value | $ | 14.11 | $ | 19.67 | $ | 13.92 | $ | 18.46 | $ | 16.00 | $ | 21.51 | $ | 15.49 | $ | 16.52 | |||||||||||||||||||
Share price | $ | 14.11 | $ | 19.86 | $ | 14.09 | $ | 18.46 | $ | 16.01 | $ | 21.51 | $ | 15.84 | $ | 16.54 | |||||||||||||||||||
Investments, at cost | $ | 21,971,408 | $ | 190,699,985 | $ | 40,260,227 | $ | 52,541,797 | $ | 64,896,870 | $ | 19,418,482 | $ | 16,891,611 | $ | 56,562,092 |
See Notes to Financial Statements.
54
PowerShares Dynamic Media Portfolio | PowerShares Dynamic Networking Portfolio | PowerShares Dynamic Oil & Gas Services Portfolio | PowerShares Dynamic Pharmaceuticals Portfolio | PowerShares Dynamic Retail Portfolio | PowerShares Dynamic Semiconductors Portfolio | PowerShares Dynamic Software Portfolio | |||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||||||
Investments, at value | $ | 125,949,245 | $ | 47,488,449 | $ | 170,514,079 | $ | 57,688,534 | $ | 24,310,948 | $ | 28,620,628 | $ | 67,690,793 | |||||||||||||||||
Cash | — | — | — | — | 16,813 | — | — | ||||||||||||||||||||||||
Receivables: | |||||||||||||||||||||||||||||||
Investments sold | 683,651 | 1,054,154 | — | — | 18,934,510 | — | 1,147,347 | ||||||||||||||||||||||||
Dividends | 23,439 | 4,552 | 12,355 | 61,425 | 2 | 6,395 | 6,211 | ||||||||||||||||||||||||
Expense waivers | 285 | 6,022 | — | 5,254 | 10,324 | 7,519 | 4,486 | ||||||||||||||||||||||||
Shares sold | — | — | — | — | 9,703,348 | — | — | ||||||||||||||||||||||||
Other assets | 3,000 | 3,002 | 3,000 | 3,001 | 3,000 | 3,000 | 3,000 | ||||||||||||||||||||||||
Total Assets | 126,659,620 | 48,556,179 | 170,529,434 | 57,758,214 | 52,978,945 | 28,637,542 | 68,851,837 | ||||||||||||||||||||||||
LIABILITES: | |||||||||||||||||||||||||||||||
Due to custodian | 6,218 | 6,063 | 6,535 | 6,064 | — | 6,063 | 6,064 | ||||||||||||||||||||||||
Payables: | |||||||||||||||||||||||||||||||
Shares repurchased | 683,298 | 1,054,118 | — | — | 18,958,304 | — | 1,147,364 | ||||||||||||||||||||||||
Investments purchased | — | — | — | — | 9,697,172 | — | — | ||||||||||||||||||||||||
Expense recapture | — | — | 2,266 | — | — | — | — | ||||||||||||||||||||||||
Accrued advisory fees | 49,386 | 20,191 | 71,892 | 24,648 | 6,567 | 12,608 | 27,540 | ||||||||||||||||||||||||
Accrued expenses | 45,654 | 38,802 | 91,005 | 65,523 | 44,084 | 45,451 | 44,597 | ||||||||||||||||||||||||
Total Liabilities | 784,556 | 1,119,174 | 171,698 | 96,235 | 28,706,127 | 64,122 | 1,225,565 | ||||||||||||||||||||||||
NET ASSETS | $ | 125,875,064 | $ | 47,437,005 | $ | 170,357,736 | $ | 57,661,979 | $ | 24,272,818 | $ | 28,573,420 | $ | 67,626,272 | |||||||||||||||||
NET ASSETS CONSIST OF: | |||||||||||||||||||||||||||||||
Shares of beneficial interest | $ | 126,462,445 | $ | 45,864,110 | $ | 304,280,720 | $ | 81,366,751 | $ | 32,542,850 | $ | 71,527,190 | $ | 74,547,956 | |||||||||||||||||
Undistributed net investment income (loss) | (3,118 | ) | (2,894 | ) | (8,321 | ) | 29,045 | 19,139 | (3,887 | ) | (3,480 | ) | |||||||||||||||||||
Accumulated net realized gain (loss) on investments | (16,758,945 | ) | (6,020,020 | ) | (158,535,010 | ) | (23,054,392 | ) | (7,431,413 | ) | (45,173,722 | ) | (15,198,221 | ) | |||||||||||||||||
Net unrealized appreciation (depreciation) on investments | 16,174,682 | 7,595,809 | 24,620,347 | (679,425 | ) | (857,758 | ) | 2,223,839 | 8,280,017 | ||||||||||||||||||||||
Net Assets | $ | 125,875,064 | $ | 47,437,005 | $ | 170,357,736 | $ | 57,661,979 | $ | 24,272,818 | $ | 28,573,420 | $ | 67,626,272 | |||||||||||||||||
Shares outstanding (unlimited amount authorized, $0.01 par value) | 9,200,000 | 2,250,000 | 9,450,000 | 2,950,000 | 1,300,000 | 2,000,000 | 3,000,000 | ||||||||||||||||||||||||
Net asset value | $ | 13.68 | $ | 21.08 | $ | 18.03 | $ | 19.55 | $ | 18.67 | $ | 14.29 | $ | 22.54 | |||||||||||||||||
Share price | $ | 13.70 | $ | 21.11 | $ | 18.28 | $ | 19.54 | $ | 19.03 | $ | 14.29 | $ | 22.55 | |||||||||||||||||
Investments, at cost | $ | 109,774,563 | $ | 39,892,640 | $ | 145,893,732 | $ | 58,367,959 | $ | 25,168,706 | $ | 26,396,789 | $ | 59,410,776 |
55
Statements of Operations
Year Ended April 30, 2010
PowerShares Dynamic Banking Portfolio | PowerShares Dynamic Biotechnology & Genome Portfolio | PowerShares Dynamic Building & Construction Portfolio | PowerShares Dynamic Energy Exploration & Production Portfolio | PowerShares Dynamic Food & Beverage Portfolio | PowerShares Dynamic Healthcare Services Portfolio | PowerShares Dynamic Insurance Portfolio | PowerShares Dynamic Leisure and Entertainment Portfolio | ||||||||||||||||||||||||||||
INVESTMENT INCOME: | |||||||||||||||||||||||||||||||||||
Dividend income | $ | 810,103 | $ | 1,788,071 | $ | 368,008 | $ | 716,806 | $ | 1,230,412 | $ | 33,993 | $ | 342,053 | $ | 229,823 | |||||||||||||||||||
Foreign withholding tax | (213 | ) | — | — | — | — | — | — | — | ||||||||||||||||||||||||||
Total Income | 809,890 | 1,788,071 | 368,008 | 716,806 | 1,230,412 | 33,993 | 342,053 | 229,823 | |||||||||||||||||||||||||||
EXPENSES: | |||||||||||||||||||||||||||||||||||
Advisory fees | 146,295 | 905,585 | 262,725 | 286,505 | 301,837 | 67,911 | 93,480 | 111,018 | |||||||||||||||||||||||||||
Accounting & Administration fees | 64,668 | 64,668 | 64,668 | 64,668 | 64,668 | 64,668 | 64,668 | 64,668 | |||||||||||||||||||||||||||
Printing | 36,527 | 14,926 | 8,322 | 13,901 | 6,143 | 2,905 | 16,357 | 3,074 | |||||||||||||||||||||||||||
Professional fees | 31,697 | 37,261 | 31,752 | 32,347 | 32,030 | 30,428 | 30,633 | 30,548 | |||||||||||||||||||||||||||
Sub-licensing | 14,630 | 54,335 | 15,764 | 17,191 | 18,110 | 6,791 | 5,609 | 6,661 | |||||||||||||||||||||||||||
Custodian & transfer agent fees | 9,739 | 15,140 | 7,657 | 9,242 | 9,337 | 7,482 | 8,916 | 8,085 | |||||||||||||||||||||||||||
Trustees | 5,530 | 9,936 | 5,872 | 5,962 | 6,343 | 4,484 | 4,752 | 4,707 | |||||||||||||||||||||||||||
Listing fee and expenses | 191 | 2,801 | 2,801 | 2,801 | 2,801 | 191 | 2,801 | 2,801 | |||||||||||||||||||||||||||
Other expenses | 4,635 | 8,689 | 2,362 | 4,833 | 5,772 | 3,132 | 2,681 | 3,081 | |||||||||||||||||||||||||||
Total Expenses | 313,912 | 1,113,341 | 401,923 | 437,450 | 447,041 | 187,992 | 229,897 | 234,643 | |||||||||||||||||||||||||||
(Waivers) and/or Recapture | (123,728 | ) | 27,697 | (70,889 | ) | (76,453 | ) | (66,726 | ) | (99,708 | ) | (112,112 | ) | (94,760 | ) | ||||||||||||||||||||
Net Expenses | 190,184 | 1,141,038 | 331,034 | 360,997 | 380,315 | 88,284 | 117,785 | 139,883 | |||||||||||||||||||||||||||
Net Investment Income (Loss) | 619,706 | 647,033 | 36,974 | 355,809 | 850,097 | (54,291 | ) | 224,268 | 89,940 | ||||||||||||||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | |||||||||||||||||||||||||||||||||||
Net realized gain (loss) from: | |||||||||||||||||||||||||||||||||||
Investments | (7,350,116 | ) | (12,748,636 | ) | (2,091,543 | ) | (4,347,914 | ) | (2,131,683 | ) | (2,169,323 | ) | (1,282,445 | ) | (1,299,171 | ) | |||||||||||||||||||
In-kind redemptions | (6,484,748 | ) | 38,117,594 | 7,371,800 | 11,640,626 | 11,911,338 | 1,676,704 | 1,179,628 | 5,750,848 | ||||||||||||||||||||||||||
Net realized gain (loss) | (13,834,864 | ) | 25,368,958 | 5,280,257 | 7,292,712 | 9,779,655 | (492,619 | ) | (102,817 | ) | 4,451,677 | ||||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) on: Investments | 16,275,482 | 46,416,191 | 6,505,844 | 11,435,753 | 5,379,206 | 4,459,357 | 5,556,072 | 6,079,935 | |||||||||||||||||||||||||||
Net realized and unrealized gain on investments | 2,440,618 | 71,785,149 | 11,786,101 | 18,728,465 | 15,158,861 | 3,966,738 | 5,453,255 | 10,531,612 | |||||||||||||||||||||||||||
Net increase in net assets resulting from operations | $ | 3,060,324 | $ | 72,432,182 | $ | 11,823,075 | $ | 19,084,274 | $ | 16,008,958 | $ | 3,912,447 | $ | 5,677,523 | $ | 10,621,552 |
See Notes to Financial Statements.
56
PowerShares Dynamic Media Portfolio | PowerShares Dynamic Networking Portfolio | PowerShares Dynamic Oil & Gas Services Portfolio | PowerShares Dynamic Pharmaceuticals Portfolio | PowerShares Dynamic Retail Portfolio | PowerShares Dynamic Semiconductors Portfolio | PowerShares Dynamic Software Portfolio | |||||||||||||||||||||||||
INVESTMENT INCOME: | |||||||||||||||||||||||||||||||
Dividend income | $ | 565,277 | $ | 35,716 | $ | 1,594,514 | $ | 1,003,760 | $ | 383,719 | $ | 355,608 | $ | 137,538 | |||||||||||||||||
Foreign withholding tax | — | — | (8,823 | ) | — | — | — | — | |||||||||||||||||||||||
Total Income | 565,277 | 35,716 | 1,585,691 | 1,003,760 | 383,719 | 355,608 | 137,538 | ||||||||||||||||||||||||
EXPENSES: | |||||||||||||||||||||||||||||||
Advisory fees | 248,608 | 140,328 | 917,588 | 342,814 | 179,830 | 173,649 | 277,010 | ||||||||||||||||||||||||
Accounting & Administration fees | 64,668 | 64,668 | 65,613 | 64,668 | 64,668 | 64,668 | 64,668 | ||||||||||||||||||||||||
Printing | 3,432 | 4,630 | 35,436 | 23,148 | 12,339 | 10,143 | 8,050 | ||||||||||||||||||||||||
Professional fees | 31,135 | 30,654 | 37,906 | 33,009 | 30,853 | 31,328 | 31,851 | ||||||||||||||||||||||||
Sub-licensing | 14,916 | 8,420 | 55,055 | 20,569 | 10,790 | 10,419 | 16,621 | ||||||||||||||||||||||||
Custodian & transfer agent fees | 8,751 | 7,349 | 14,811 | 8,387 | 8,280 | 8,007 | 7,455 | ||||||||||||||||||||||||
Trustees | 5,242 | 4,900 | 10,233 | 6,681 | 5,530 | 5,305 | 5,805 | ||||||||||||||||||||||||
Listing fee and expenses | 2,801 | 2,801 | 2,801 | 2,801 | 2,801 | 2,801 | 2,801 | ||||||||||||||||||||||||
Other expenses | 4,335 | 3,787 | 9,430 | 3,733 | 5,159 | 4,575 | 3,972 | ||||||||||||||||||||||||
Total Expenses | 383,888 | 267,537 | 1,148,873 | 505,810 | 320,250 | 310,895 | 418,233 | ||||||||||||||||||||||||
(Waivers) and/or Recapture | (70,642 | ) | (90,724 | ) | (327 | ) | (73,868 | ) | (93,665 | ) | (92,098 | ) | (69,201 | ) | |||||||||||||||||
Net Expenses | 313,246 | 176,813 | 1,148,546 | 431,942 | 226,585 | 218,797 | 349,032 | ||||||||||||||||||||||||
Net Investment Income (Loss) | 252,031 | (141,097 | ) | 437,145 | 571,818 | 157,134 | 136,811 | (211,494 | ) | ||||||||||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | |||||||||||||||||||||||||||||||
Net realized gain (loss) from: | |||||||||||||||||||||||||||||||
Investments | (322,718 | ) | (165,404 | ) | (22,651,711 | ) | (9,313,262 | ) | (1,086,940 | ) | (4,158,786 | ) | (492,830 | ) | |||||||||||||||||
In-kind redemptions | 6,902,934 | 5,665,133 | 7,488,718 | (227,754 | ) | 24,858,074 | 6,883,170 | 14,460,870 | |||||||||||||||||||||||
Net realized gain (loss) | 6,580,216 | 5,499,729 | (15,162,993 | ) | (9,541,016 | ) | 23,771,134 | 2,724,384 | 13,968,040 | ||||||||||||||||||||||
Net change in unrealized appreciation (depreciation) on: Investments | 17,466,146 | 6,663,272 | 71,087,526 | 35,342,985 | (17,762,532 | ) | 7,568,493 | 6,367,617 | |||||||||||||||||||||||
Net realized and unrealized gain on investments | 24,046,362 | 12,163,001 | 55,924,533 | 25,801,969 | 6,008,602 | 10,292,877 | 20,335,657 | ||||||||||||||||||||||||
Net increase in net assets resulting from operations | $ | 24,298,393 | $ | 12,021,904 | $ | 56,361,678 | $ | 26,373,787 | $ | 6,165,736 | $ | 10,429,688 | $ | 20,124,163 |
57
Statements of Changes in Net Assets
PowerShares Dynamic Banking Portfolio | PowerShares Dynamic Biotechnology & Genome Portfolio | PowerShares Dynamic Building & Construction Portfolio | |||||||||||||||||||||||||
Year Ended April 30, 2010 | Year Ended April 30, 2009 | Year Ended April 30, 2010 | Year Ended April 30, 2009 | Year Ended April 30, 2010 | Year Ended April 30, 2009 | ||||||||||||||||||||||
OPERATIONS: | |||||||||||||||||||||||||||
Net investment income (loss) | $ | 619,706 | $ | 3,065,051 | $ | 647,033 | $ | (714,889 | ) | $ | 36,974 | $ | 45,218 | ||||||||||||||
Net realized gain (loss) on investments | (13,834,864 | ) | (44,050,050 | ) | 25,368,958 | (45,252,998 | ) | 5,280,257 | (13,515,181 | ) | |||||||||||||||||
Net change in unrealized appreciation (depreciation) on investments | 16,275,482 | (14,785,699 | ) | 46,416,191 | (23,412,046 | ) | 6,505,844 | 3,991,876 | |||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 3,060,324 | (55,770,698 | ) | 72,432,182 | (69,379,933 | ) | 11,823,075 | (9,478,087 | ) | ||||||||||||||||||
Undistributed net investment income (loss) included in the price of units issued and redeemed | (11,158 | ) | (39,384 | ) | (63,453 | ) | (155,505 | ) | (20,556 | ) | 108,043 | ||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||||||||||||
Net investment income | (1,325,518 | ) | (3,373,727 | ) | (647,086 | ) | — | (71,961 | ) | (22,670 | ) | ||||||||||||||||
Return of capital | (13,214 | ) | — | (217,733 | ) | — | — | — | |||||||||||||||||||
Total distributions to shareholders | (1,338,732 | ) | (3,373,727 | ) | (864,819 | ) | — | (71,961 | ) | (22,670 | ) | ||||||||||||||||
SHAREHOLDER TRANSACTIONS: | |||||||||||||||||||||||||||
Proceeds from shares sold | 28,346,551 | 149,390,286 | 126,426,292 | 173,345,740 | 40,602,688 | 63,471,504 | |||||||||||||||||||||
Value of shares repurchased | (79,438,109 | ) | (123,120,186 | ) | (122,899,742 | ) | (163,668,814 | ) | (51,381,416 | ) | (20,351,949 | ) | |||||||||||||||
Net income equalization | 11,158 | 39,384 | 63,453 | 155,505 | 20,556 | (108,043 | ) | ||||||||||||||||||||
Net increase (decrease) in net assets resulting from shares transactions | (51,080,400 | ) | 26,309,484 | 3,590,003 | 9,832,431 | (10,758,172 | ) | 43,011,512 | |||||||||||||||||||
Increase (Decrease) in Net Assets | (49,369,966 | ) | (32,874,325 | ) | 75,093,913 | (59,703,007 | ) | 972,386 | 33,618,798 | ||||||||||||||||||
NET ASSETS: | |||||||||||||||||||||||||||
Beginning of year | 74,773,855 | 107,648,180 | 139,296,596 | 198,999,603 | 49,141,987 | 15,523,189 | |||||||||||||||||||||
End of year | $ | 25,403,889 | $ | 74,773,855 | $ | 214,390,509 | $ | 139,296,596 | $ | 50,114,373 | $ | 49,141,987 | |||||||||||||||
Undistributed net investment income (loss) at end of year | $ | (4,517 | ) | $ | 701,295 | $ | (6,773 | ) | $ | (6,720 | ) | $ | 6,819 | $ | 41,806 | ||||||||||||
CHANGES IN SHARES OUTSTANDING: | |||||||||||||||||||||||||||
Shares sold | 2,350,000 | 8,500,000 | 7,600,000 | 9,800,000 | 3,500,000 | 5,400,000 | |||||||||||||||||||||
Shares repurchased | (6,550,000 | ) | (8,000,000 | ) | (7,500,000 | ) | (10,200,000 | ) | (4,400,000 | ) | (1,800,000 | ) | |||||||||||||||
Shares outstanding, beginning of year | 6,000,000 | 5,500,000 | 10,800,000 | 11,200,000 | 4,500,000 | 900,000 | |||||||||||||||||||||
Shares outstanding, end of year | 1,800,000 | 6,000,000 | 10,900,000 | 10,800,000 | 3,600,000 | 4,500,000 |
See Notes to Financial Statements.
58
PowerShares Dynamic Energy Exploration & Production Portfolio | PowerShares Dynamic Food & Beverage Portfolio | PowerShares Dynamic Healthcare Services Portfolio | |||||||||||||||||||||||||
Year Ended April 30, 2010 | Year Ended April 30, 2009 | Year Ended April 30, 2010 | Year Ended April 30, 2009 | Year Ended April 30, 2010 | Year Ended April 30, 2009 | ||||||||||||||||||||||
OPERATIONS: | |||||||||||||||||||||||||||
Net investment income (loss) | $ | 355,809 | $ | 269,991 | $ | 850,097 | $ | 1,417,886 | $ | (54,291 | ) | $ | (56,425 | ) | |||||||||||||
Net realized gain (loss) on investments | 7,292,712 | (40,050,400 | ) | 9,779,655 | (21,534,041 | ) | (492,619 | ) | (15,214,250 | ) | |||||||||||||||||
Net change in unrealized appreciation (depreciation) on investments | 11,435,753 | (26,868,276 | ) | 5,379,206 | 672,398 | 4,459,357 | 5,594,158 | ||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 19,084,274 | (66,648,685 | ) | 16,008,958 | (19,443,757 | ) | 3,912,447 | (9,676,517 | ) | ||||||||||||||||||
Undistributed net investment income (loss) included in the price of units issued and redeemed | (11,946 | ) | 11,918 | (275,996 | ) | 207,792 | 4,069 | (5,281 | ) | ||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||||||||||||
Net investment income | (238,490 | ) | (345,726 | ) | (1,083,897 | ) | (1,004,394 | ) | — | — | |||||||||||||||||
Return of capital | (49,129 | ) | — | — | — | — | — | ||||||||||||||||||||
Total distributions to shareholders | (287,619 | ) | (345,726 | ) | (1,083,897 | ) | (1,004,394 | ) | — | — | |||||||||||||||||
SHAREHOLDER TRANSACTIONS: | |||||||||||||||||||||||||||
Proceeds from shares sold | 45,781,891 | 98,734,331 | 73,142,785 | 85,048,720 | 20,225,915 | 26,116,175 | |||||||||||||||||||||
Value of shares repurchased | (55,939,908 | ) | (119,198,333 | ) | (101,865,601 | ) | (65,021,064 | ) | (13,428,937 | ) | (33,664,830 | ) | |||||||||||||||
Net income equalization | 11,946 | (11,918 | ) | 275,996 | (207,792 | ) | (4,069 | ) | 5,281 | ||||||||||||||||||
Net increase (decrease) in net assets resulting from shares transactions | (10,146,071 | ) | (20,475,920 | ) | (28,446,820 | ) | 19,819,864 | 6,792,909 | (7,543,374 | ) | |||||||||||||||||
Increase (Decrease) in Net Assets | 8,638,638 | (87,458,413 | ) | (13,797,755 | ) | (420,495 | ) | 10,709,425 | (17,225,172 | ) | |||||||||||||||||
NET ASSETS: | |||||||||||||||||||||||||||
Beginning of year | 51,343,956 | 138,802,369 | 86,592,438 | 87,012,933 | 10,800,347 | 28,025,519 | |||||||||||||||||||||
End of year | $ | 59,982,594 | $ | 51,343,956 | $ | 72,794,683 | $ | 86,592,438 | $ | 21,509,772 | $ | 10,800,347 | |||||||||||||||
Undistributed net investment income (loss) at end of year | $ | (4,673 | ) | $ | 20,273 | $ | 179,692 | $ | 413,492 | $ | (3,263 | ) | $ | (3,309 | ) | ||||||||||||
CHANGES IN SHARES OUTSTANDING: | |||||||||||||||||||||||||||
Shares sold | 2,850,000 | 4,700,000 | 5,200,000 | 6,400,000 | 1,050,000 | 1,200,000 | |||||||||||||||||||||
Shares repurchased | (3,500,000 | ) | (6,000,000 | ) | (7,450,000 | ) | (4,800,000 | ) | (750,000 | ) | (1,700,000 | ) | |||||||||||||||
Shares outstanding, beginning of year | 3,900,000 | 5,200,000 | 6,800,000 | 5,200,000 | 700,000 | 1,200,000 | |||||||||||||||||||||
Shares outstanding, end of year | 3,250,000 | 3,900,000 | 4,550,000 | 6,800,000 | 1,000,000 | 700,000 |
59
Statements of Changes in Net Assets (Continued)
PowerShares Dynamic Insurance Portfolio | PowerShares Dynamic Leisure and Entertainment Portfolio | PowerShares Dynamic Media Portfolio | |||||||||||||||||||||||||
Year Ended April 30, 2010 | Year Ended April 30, 2009 | Year Ended April 30, 2010 | Year Ended April 30, 2009 | Year Ended April 30, 2010 | Year Ended April 30, 2009 | ||||||||||||||||||||||
OPERATIONS: | |||||||||||||||||||||||||||
Net investment income (loss) | $ | 224,268 | $ | 326,562 | $ | 89,940 | $ | 104,077 | $ | 252,031 | $ | 92,883 | |||||||||||||||
Net realized gain (loss) on investments | (102,817 | ) | (8,673,069 | ) | 4,451,677 | (6,028,991 | ) | 6,580,216 | (14,576,403 | ) | |||||||||||||||||
Net change in unrealized appreciation (depreciation) on investments | 5,556,072 | (2,704,707 | ) | 6,079,935 | 1,748,598 | 17,466,146 | 2,190,171 | ||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 5,677,523 | (11,051,214 | ) | 10,621,552 | (4,176,316 | ) | 24,298,393 | (12,293,349 | ) | ||||||||||||||||||
Undistributed net investment income (loss) included in the price of units issued and redeemed | 15,651 | (22,747 | ) | (764,293 | ) | (45,282 | ) | (518,652 | ) | 83,755 | |||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||||||||||||
Net investment income | (260,945 | ) | (304,900 | ) | (72,405 | ) | (101,048 | ) | (252,182 | ) | (95,850 | ) | |||||||||||||||
Return of capital | — | — | — | — | (22,607 | ) | (48,916 | ) | |||||||||||||||||||
Total distributions to shareholders | (260,945 | ) | (304,900 | ) | (72,405 | ) | (101,048 | ) | (274,789 | ) | (144,766 | ) | |||||||||||||||
SHAREHOLDER TRANSACTIONS: | |||||||||||||||||||||||||||
Proceeds from shares sold | 12,074,164 | 40,493,250 | 73,178,081 | 33,503,371 | 129,819,265 | 33,989,362 | |||||||||||||||||||||
Value of shares repurchased | (25,707,970 | ) | (36,340,003 | ) | (33,708,559 | ) | (31,564,852 | ) | (36,222,010 | ) | (44,220,220 | ) | |||||||||||||||
Net income equalization | (15,651 | ) | 22,747 | 764,293 | 45,282 | 518,652 | (83,755 | ) | |||||||||||||||||||
Net increase (decrease) in net assets resulting from shares transactions | (13,649,457 | ) | 4,175,994 | 40,233,815 | 1,983,801 | 94,115,907 | (10,314,613 | ) | |||||||||||||||||||
Increase (Decrease) in Net Assets | (8,217,228 | ) | (7,202,867 | ) | 50,018,669 | (2,338,845 | ) | 117,620,859 | (22,668,973 | ) | |||||||||||||||||
NET ASSETS: | |||||||||||||||||||||||||||
Beginning of year | 26,808,880 | 34,011,747 | 12,775,710 | 15,114,555 | 8,254,205 | 30,923,178 | |||||||||||||||||||||
End of year | $ | 18,591,652 | $ | 26,808,880 | $ | 62,794,379 | $ | 12,775,710 | $ | 125,875,064 | $ | 8,254,205 | |||||||||||||||
Undistributed net investment income (loss) at end of year | $ | 26,643 | $ | 63,320 | $ | 20,564 | $ | 3,029 | $ | (3,118 | ) | $ | (2,967 | ) | |||||||||||||
CHANGES IN SHARES OUTSTANDING: | |||||||||||||||||||||||||||
Shares sold | 900,000 | 2,900,000 | 5,200,000 | 2,900,000 | 11,300,000 | 3,100,000 | |||||||||||||||||||||
Shares repurchased | (2,000,000 | ) | (2,700,000 | ) | (2,600,000 | ) | (2,700,000 | ) | (3,100,000 | ) | (4,400,000 | ) | |||||||||||||||
Shares outstanding, beginning of year | 2,300,000 | 2,100,000 | 1,200,000 | 1,000,000 | 1,000,000 | 2,300,000 | |||||||||||||||||||||
Shares outstanding, end of year | 1,200,000 | 2,300,000 | 3,800,000 | 1,200,000 | 9,200,000 | 1,000,000 |
See Notes to Financial Statements.
60
PowerShares Dynamic Networking Portfolio | PowerShares Dynamic Oil & Gas Services Portfolio | PowerShares Dynamic Pharmaceuticals Portfolio | |||||||||||||||||||||||||
Year Ended April 30, 2010 | Year Ended April 30, 2009 | Year Ended April 30, 2010 | Year Ended April 30, 2009 | Year Ended April 30, 2010 | Year Ended April 30, 2009 | ||||||||||||||||||||||
OPERATIONS: | |||||||||||||||||||||||||||
Net investment income (loss) | $ | (141,097 | ) | $ | (42,042 | ) | $ | 437,145 | $ | 695,080 | $ | 571,818 | $ | 1,192,621 | |||||||||||||
Net realized gain (loss) on investments | 5,499,729 | (2,731,762 | ) | (15,162,993 | ) | (93,981,939 | ) | (9,541,016 | ) | (7,401,862 | ) | ||||||||||||||||
Net change in unrealized appreciation (depreciation) on investments | 6,663,272 | 2,466,022 | 71,087,526 | (103,881,339 | ) | 35,342,985 | (25,038,354 | ) | |||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 12,021,904 | (307,782 | ) | 56,361,678 | (197,168,198 | ) | 26,373,787 | (31,247,595 | ) | ||||||||||||||||||
Undistributed net investment income (loss) included in the price of units issued and redeemed | 27,812 | 74,424 | (3,035 | ) | 19,943 | (161,901 | ) | (32,948 | ) | ||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||||||||||||
Net investment income | — | — | (642,185 | ) | (543,711 | ) | (992,451 | ) | (949,059 | ) | |||||||||||||||||
Return of capital | — | — | (258,092 | ) | — | — | — | ||||||||||||||||||||
Total distributions to shareholders | — | — | (900,277 | ) | (543,711 | ) | (992,451 | ) | (949,059 | ) | |||||||||||||||||
SHAREHOLDER TRANSACTIONS: | |||||||||||||||||||||||||||
Proceeds from shares sold | 39,996,959 | 16,238,074 | 83,424,925 | 224,020,307 | 19,257,512 | 97,609,610 | |||||||||||||||||||||
Value of shares repurchased | (20,858,030 | ) | (12,485,502 | ) | (124,244,327 | ) | (250,531,653 | ) | (91,325,601 | ) | (67,679,197 | ) | |||||||||||||||
Net income equalization | (27,812 | ) | (74,424 | ) | 3,035 | (19,943 | ) | 161,901 | 32,948 | ||||||||||||||||||
Net increase (decrease) in net assets resulting from shares transactions | 19,111,117 | 3,678,148 | (40,816,367 | ) | (26,531,289 | ) | (71,906,188 | ) | 29,963,361 | ||||||||||||||||||
Increase (Decrease) in Net Assets | 31,160,833 | 3,444,790 | 14,641,999 | (224,223,255 | ) | (46,686,753 | ) | (2,266,241 | ) | ||||||||||||||||||
NET ASSETS: | |||||||||||||||||||||||||||
Beginning of year | 16,276,172 | 12,831,382 | 155,715,737 | 379,938,992 | 104,348,732 | 106,614,973 | |||||||||||||||||||||
End of year | $ | 47,437,005 | $ | 16,276,172 | $ | 170,357,736 | $ | 155,715,737 | $ | 57,661,979 | $ | 104,348,732 | |||||||||||||||
Undistributed net investment income (loss) at end of year | $ | (2,894 | ) | $ | (2,677 | ) | $ | (8,321 | ) | $ | 196,719 | $ | 29,045 | $ | 449,678 | ||||||||||||
CHANGES IN SHARES OUTSTANDING: | |||||||||||||||||||||||||||
Shares sold | 2,250,000 | 1,300,000 | 5,250,000 | 10,100,000 | 1,150,000 | 5,800,000 | |||||||||||||||||||||
Shares repurchased | (1,200,000 | ) | (900,000 | ) | (7,700,000 | ) | (11,200,000 | ) | (5,700,000 | ) | (4,500,000 | ) | |||||||||||||||
Shares outstanding, beginning of year | 1,200,000 | 800,000 | 11,900,000 | 13,000,000 | 7,500,000 | 6,200,000 | |||||||||||||||||||||
Shares outstanding, end of year | 2,250,000 | 1,200,000 | 9,450,000 | 11,900,000 | 2,950,000 | 7,500,000 |
61
Statements of Changes in Net Assets (Continued)
PowerShares Dynamic Retail Portfolio | PowerShares Dynamic Semiconductors Portfolio | ||||||||||||||||||
Year Ended April 30, 2010 | Year Ended April 30, 2009 | Year Ended April 30, 2010 | Year Ended April 30, 2009 | ||||||||||||||||
OPERATIONS: | |||||||||||||||||||
Net investment income (loss) | $ | 157,134 | $ | 106,546 | $ | 136,811 | $ | 146,834 | |||||||||||
Net realized gain (loss) on investments | 23,771,134 | (6,551,977 | ) | 2,724,384 | (27,291,485 | ) | |||||||||||||
Net change in unrealized appreciation (depreciation) on investments | (17,762,532 | ) | 16,783,713 | 7,568,493 | 3,722,475 | ||||||||||||||
Net increase (decrease) in net assets resulting from operations | 6,165,736 | 10,338,282 | 10,429,688 | (23,422,176 | ) | ||||||||||||||
Undistributed net investment income (loss) included in the price of units issued and redeemed | 241,079 | (334,997 | ) | (26,642 | ) | (23,617 | ) | ||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||||
Net investment income | (196,273 | ) | (48,268 | ) | (146,532 | ) | (141,000 | ) | |||||||||||
Return of capital | — | — | (8,521 | ) | — | ||||||||||||||
Total distributions to shareholders | (196,273 | ) | (48,268 | ) | (155,053 | ) | (141,000 | ) | |||||||||||
SHAREHOLDER TRANSACTIONS: | |||||||||||||||||||
Proceeds from shares sold | 82,184,260 | 109,311,011 | 34,613,789 | 37,774,948 | |||||||||||||||
Value of shares repurchased | (141,487,827 | ) | (56,384,978 | ) | (52,688,497 | ) | (52,894,493 | ) | |||||||||||
Net income equalization | (241,079 | ) | 334,997 | 26,642 | 23,617 | ||||||||||||||
Net increase (decrease) in net assets resulting from shares transactions | (59,544,646 | ) | 53,261,030 | (18,048,066 | ) | (15,095,928 | ) | ||||||||||||
Increase (Decrease) in Net Assets | (53,334,104 | ) | 63,216,047 | (7,800,073 | ) | (38,682,721 | ) | ||||||||||||
NET ASSETS: | |||||||||||||||||||
Beginning of year | 77,606,922 | 14,390,875 | 36,373,493 | 75,056,214 | |||||||||||||||
End of year | $ | 24,272,818 | $ | 77,606,922 | $ | 28,573,420 | $ | 36,373,493 | |||||||||||
Undistributed net investment income (loss) at end of year | $ | 19,139 | $ | 58,278 | $ | (3,887 | ) | $ | 5,834 | ||||||||||
CHANGES IN SHARES OUTSTANDING: | |||||||||||||||||||
Shares sold | 5,050,000 | 8,500,000 | 2,900,000 | 3,000,000 | |||||||||||||||
Shares repurchased | (9,050,000 | ) | (4,100,000 | ) | (4,400,000 | ) | (4,100,000 | ) | |||||||||||
Shares outstanding, beginning of year | 5,300,000 | 900,000 | 3,500,000 | 4,600,000 | |||||||||||||||
Shares outstanding, end of year | 1,300,000 | 5,300,000 | 2,000,000 | 3,500,000 |
See Notes to Financial Statements.
62
PowerShares Dynamic Software Portfolio | |||||||||||
Year Ended April 30, 2010 | Year Ended April 30, 2009 | ||||||||||
OPERATIONS: | |||||||||||
Net investment income (loss) | $ | (211,494 | ) | $ | (124,681 | ) | |||||
Net realized gain (loss) on investments | 13,968,040 | (5,090,447 | ) | ||||||||
Net change in unrealized appreciation (depreciation) on investments | 6,367,617 | 2,850,819 | |||||||||
Net increase (decrease) in net assets resulting from operations | 20,124,163 | (2,364,309 | ) | ||||||||
Undistributed net investment income (loss) included in the price of units issued and redeemed | 7,870 | 36,904 | |||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||
Net investment income | — | — | |||||||||
Return of capital | — | — | |||||||||
Total distributions to shareholders | — | — | |||||||||
SHAREHOLDER TRANSACTIONS: | |||||||||||
Proceeds from shares sold | 65,333,131 | 29,449,067 | |||||||||
Value of shares repurchased | (54,727,511 | ) | (25,243,698 | ) | |||||||
Net income equalization | (7,870 | ) | (36,904 | ) | |||||||
Net increase (decrease) in net assets resulting from shares transactions | 10,597,750 | 4,168,465 | |||||||||
Increase (Decrease) in Net Assets | 30,729,783 | 1,841,060 | |||||||||
NET ASSETS: | |||||||||||
Beginning of year | 36,896,489 | 35,055,429 | |||||||||
End of year | $ | 67,626,272 | $ | 36,896,489 | |||||||
Undistributed net investment income (loss) at end of year | $ | (3,480 | ) | $ | (3,232 | ) | |||||
CHANGES IN SHARES OUTSTANDING: | |||||||||||
Shares sold | 3,450,000 | 2,000,000 | |||||||||
Shares repurchased | (2,850,000 | ) | (1,600,000 | ) | |||||||
Shares outstanding, beginning of year | 2,400,000 | 2,000,000 | |||||||||
Shares outstanding, end of year | 3,000,000 | 2,400,000 |
63
Financial Highlights
PowerShares Dynamic Banking Portfolio
Year Ended April 30, | For the Period October 12, 2006* Through | ||||||||||||||||||
2010 | 2009 | 2008 | April 30, 2007 | ||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||
Net asset value at beginning of period | $ | 12.46 | $ | 19.57 | $ | 23.68 | $ | 25.17 | |||||||||||
Net investment income** | 0.24 | 0.46 | 0.52 | 0.22 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 1.89 | (7.04 | ) | (4.22 | ) | (1.49 | ) | ||||||||||||
Total from investment operations | 2.13 | (6.58 | ) | (3.70 | ) | (1.27 | ) | ||||||||||||
Distributions to shareholders from: | |||||||||||||||||||
Net investment income | (0.48 | ) | (0.53 | ) | (0.41 | ) | (0.22 | ) | |||||||||||
Return of capital | (0.00 | )(a) | — | — | — | ||||||||||||||
Total distributions | (0.48 | ) | (0.53 | ) | (0.41 | ) | (0.22 | ) | |||||||||||
Net asset value at end of period | $ | 14.11 | $ | 12.46 | $ | 19.57 | $ | 23.68 | |||||||||||
Share price at end of period*** | $ | 14.11 | $ | 12.43 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN:**** | 17.91 | % | (34.34 | )% | (15.80 | )% | (5.08 | )% | |||||||||||
SHARE PRICE TOTAL RETURN**** | 18.21 | % | (34.49 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 25,404 | $ | 74,774 | $ | 107,648 | $ | 4,736 | |||||||||||
Ratio to average net assets of: | |||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.65 | % | 0.65 | % | 0.66 | % | 0.76 | %† | |||||||||||
Expenses, prior to (Waivers) and/or Recapture | 1.07 | % | 0.72 | % | 0.78 | % | 1.88 | %† | |||||||||||
Net investment income, after (Waivers) and/or Recapture | 2.12 | % | 2.82 | % | 2.71 | % | 1.58 | %† | |||||||||||
Portfolio turnover rate †† | 84 | % | 93 | % | 111 | % | 57 | % | |||||||||||
Undistributed net investment loss included in price of units issued and redeemed**# | $ | (0.00 | )(a) | $ | (0.01 | ) | $ | (0.05 | ) | $ | (0.06 | ) |
PowerShares Dynamic Biotechnology & Genome Portfolio
Year Ended April 30, | For the Period June 23, 2005* Through | ||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | April 30, 2006 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 12.90 | $ | 17.77 | $ | 19.30 | $ | 17.24 | $ | 14.71 | |||||||||||||
Net investment income (loss)** | 0.06 | ††† | (0.06 | ) | (0.11 | ) | (0.10 | ) | (0.08 | ) | |||||||||||||
Net realized and unrealized gain (loss) on investments | 6.79 | (4.81 | ) | (1.42 | ) | 2.16 | 2.61 | ||||||||||||||||
Total from investment operations | 6.85 | (4.87 | ) | (1.53 | ) | 2.06 | 2.53 | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.06 | ) | — | — | — | — | |||||||||||||||||
Return of capital | (0.02 | ) | — | — | — | — | |||||||||||||||||
Total distributions | (0.08 | ) | — | — | — | — | |||||||||||||||||
Net asset value at end of period | $ | 19.67 | $ | 12.90 | $ | 17.77 | $ | 19.30 | $ | 17.24 | |||||||||||||
Share price at end of period*** | $ | 19.86 | $ | 12.87 | |||||||||||||||||||
NET ASSET VALUE, TOTAL RETURN:**** | 53.19 | % | (27.41 | )% | (7.93 | )% | 11.95 | % | 17.20 | % | |||||||||||||
SHARE PRICE TOTAL RETURN**** | 53.63 | % | (27.62 | )% | |||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 214,391 | $ | 139,297 | $ | 199,000 | $ | 258,616 | $ | 250,021 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | 0.64 | %† | |||||||||||||
Expenses, prior to (Waivers) and/or Recapture | 0.61 | % | 0.62 | % | 0.62 | % | 0.66 | % | 0.67 | %† | |||||||||||||
Net investment income (loss), after (Waivers) and/or Recapture | 0.36 | %††† | (0.38 | )% | (0.57 | )% | (0.56 | )% | (0.55 | )%† | |||||||||||||
Portfolio turnover rate †† | 80 | % | 93 | % | 91 | % | 82 | % | 49 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | (0.01 | ) | $ | (0.01 | ) | $ | 0.01 | $ | 0.01 | — |
* Commencement of Investment Operations.
** Based on average shares outstanding.
*** The mean between the last bid and ask prices.
**** Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all dividends and distributions at share price during the period, and sale at the share price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
† Annualized.
†† Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
††† Net investment income per share and the ratio of net investment income to average net assets include a special cash dividend received of $1.41 per share owned of PDL BioPharma, Inc. on December 15, 2009. Net investment loss per share and the ratio of net investment loss to average net assets excluding the special dividend are $(0.03) and (0.18)%, respectively.
# The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(a) Amount represents less than $0.005.
See Notes to Financial Statements.
64
Financial Highlights (Continued)
PowerShares Dynamic Building & Construction Portfolio
Year Ended April 30, | For the Period October 26, 2005* Through | ||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | April 30, 2006 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 10.92 | $ | 17.25 | $ | 18.70 | $ | 18.15 | $ | 15.26 | |||||||||||||
Net investment income** | 0.01 | 0.02 | 0.02 | 0.02 | 0.00 | (a) | |||||||||||||||||
Net realized and unrealized gain (loss) on investments | 3.01 | (6.33 | ) | (1.45 | ) | 0.53 | 2.90 | ||||||||||||||||
Total from investment operations | 3.02 | (6.31 | ) | (1.43 | ) | 0.55 | 2.90 | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.02 | ) | (0.02 | ) | (0.02 | ) | 0.00 | (a) | (0.01 | ) | |||||||||||||
Net asset value at end of period | $ | 13.92 | $ | 10.92 | $ | 17.25 | $ | 18.70 | $ | 18.15 | |||||||||||||
Share price at end of period*** | $ | 14.09 | $ | 10.94 | |||||||||||||||||||
NET ASSET VALUE, TOTAL RETURN:**** | 27.65 | % | (36.61 | )% | (7.66 | )% | 3.06 | % | 18.99 | % | |||||||||||||
SHARE PRICE TOTAL RETURN**** | 27.42 | % | (36.46 | )% | |||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 50,114 | $ | 49,142 | $ | 15,523 | $ | 18,699 | $ | 25,406 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | 0.67 | %† | |||||||||||||
Expenses, prior to (Waivers) and/or Recapture | 0.76 | % | 1.06 | % | 1.18 | % | 1.65 | % | 0.80 | %† | |||||||||||||
Net investment income (loss), after (Waivers) and/or Recapture | 0.07 | % | 0.19 | % | 0.09 | % | 0.15 | % | 0.00 | †(a) | |||||||||||||
Portfolio turnover rate †† | 59 | % | 50 | % | 75 | % | 59 | % | 29 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | (0.00 | )(a) | $ | 0.05 | $ | (0.02 | ) | $ | 0.01 | — |
PowerShares Dynamic Energy Exploration & Production Portfolio
Year Ended April 30, | For the Period October 26, 2005* Through | ||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | April 30, 2006 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 13.17 | $ | 26.69 | $ | 21.29 | $ | 18.63 | $ | 16.03 | |||||||||||||
Net investment income** | 0.10 | 0.06 | 0.05 | 0.09 | 0.00 | (a) | |||||||||||||||||
Net realized and unrealized gain (loss) on investments | 5.27 | (13.50 | ) | 5.41 | 2.63 | 2.62 | |||||||||||||||||
Total from investment operations | 5.37 | (13.44 | ) | 5.46 | 2.72 | 2.62 | |||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.07 | ) | (0.08 | ) | (0.06 | ) | (0.06 | ) | (0.02 | ) | |||||||||||||
Return of capital | (0.01 | ) | — | 0.00 | (a) | — | — | ||||||||||||||||
Total distributions | (0.08 | ) | (0.08 | ) | (0.06 | ) | �� | (0.06 | ) | (0.02 | ) | ||||||||||||
Net asset value at end of period | $ | 18.46 | $ | 13.17 | $ | 26.69 | $ | 21.29 | $ | 18.63 | |||||||||||||
Share price at end of period*** | $ | 18.46 | $ | 13.15 | |||||||||||||||||||
NET ASSET VALUE, TOTAL RETURN:**** | 40.87 | % | (50.42 | )% | 25.69 | % | 14.66 | % | 16.33 | % | |||||||||||||
SHARE PRICE TOTAL RETURN**** | 41.08 | % | (50.44 | )% | |||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 59,983 | $ | 51,344 | $ | 138,802 | $ | 123,488 | $ | 111,795 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | 0.66 | %† | |||||||||||||
Expenses, prior to (Waivers) and/or Recapture | 0.76 | % | 0.69 | % | 0.65 | % | 0.74 | % | 0.75 | %† | |||||||||||||
Net investment income (loss), after (Waivers) and/or Recapture | 0.62 | % | 0.30 | % | 0.23 | % | 0.47 | % | (0.01 | )%† | |||||||||||||
Portfolio turnover rate †† | 68 | % | 68 | % | 39 | % | 59 | % | 19 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | (0.00 | )(a) | $ | 0.00 | (a) | $ | 0.00 | (a) | $ | (0.01 | ) | — |
* Commencement of Investment Operations.
** Based on average shares outstanding.
*** The mean between the last bid and ask prices.
**** Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all dividends and distributions at share price during the period, and sale at the share price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
† Annualized.
†† Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
# The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(a) Amount represents less than $0.005 or 0.005%.
See Notes to Financial Statements.
65
Financial Highlights (Continued)
PowerShares Dynamic Food & Beverage Portfolio
Year Ended April 30, | For the Period June 23, 2005* Through | ||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | April 30, 2006 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 12.73 | $ | 16.73 | $ | 17.53 | $ | 15.17 | $ | 14.85 | |||||||||||||
Net investment income** | 0.20 | 0.25 | 0.18 | 0.39 | 0.11 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 3.33 | (4.08 | ) | (0.42 | ) | 2.14 | 0.30 | ||||||||||||||||
Total from investment operations | 3.53 | (3.83 | ) | (0.24 | ) | 2.53 | 0.41 | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.26 | ) | (0.17 | ) | (0.40 | ) | (0.17 | ) | (0.09 | ) | |||||||||||||
Return of capital | — | — | (0.16 | ) | — | — | |||||||||||||||||
Total distributions | (0.26 | ) | (0.17 | ) | (0.56 | ) | (0.17 | ) | (0.09 | ) | |||||||||||||
Net asset value at end of period | $ | 16.00 | $ | 12.73 | $ | 16.73 | $ | 17.53 | $ | 15.17 | |||||||||||||
Share price at end of period*** | $ | 16.01 | $ | 12.74 | |||||||||||||||||||
NET ASSET VALUE, TOTAL RETURN:**** | 28.08 | % | (22.99 | )% | (1.40 | )% | 16.79 | % | 2.78 | % | |||||||||||||
SHARE PRICE TOTAL RETURN**** | 28.06 | % | (22.89 | )% | |||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 72,795 | $ | 86,592 | $ | 87,013 | $ | 33,314 | $ | 24,270 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.63 | % | 0.63 | % | 0.63 | % | 0.64 | % | 0.69 | %† | |||||||||||||
Expenses, prior to (Waivers) and/or Recapture | 0.74 | % | 0.71 | % | 0.88 | % | 1.15 | % | 1.07 | %† | |||||||||||||
Net investment income, after (Waivers) and/or Recapture | 1.41 | % | 1.80 | % | 1.11 | % | 2.42 | % | 0.91 | %† | |||||||||||||
Portfolio turnover rate †† | 65 | % | 65 | % | 64 | % | 50 | % | 72 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | (0.06 | ) | $ | 0.04 | $ | 0.07 | $ | 0.02 | — |
PowerShares Dynamic Healthcare Services Portfolio
Year Ended April 30, | For the Period October 12, 2006* Through | ||||||||||||||||||
2010 | 2009 | 2008 | April 30, 2007 | ||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||
Net asset value at beginning of period | $ | 15.43 | $ | 23.35 | $ | 28.04 | $ | 24.88 | |||||||||||
Net investment income (loss)** | (0.08 | ) | (0.05 | ) | (0.16 | ) | (0.08 | ) | |||||||||||
Net realized and unrealized gain (loss) on investments | 6.16 | (7.87 | ) | (4.53 | ) | 3.24 | |||||||||||||
Total from investment operations | 6.08 | (7.92 | ) | (4.69 | ) | 3.16 | |||||||||||||
Net asset value at end of period | $ | 21.51 | $ | 15.43 | $ | 23.35 | $ | 28.04 | |||||||||||
Share price at end of period*** | $ | 21.51 | $ | 15.43 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN:**** | 39.40 | % | (33.92 | )% | (16.73 | )% | 12.70 | % | |||||||||||
SHARE PRICE TOTAL RETURN**** | 39.40 | % | (33.89 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 21,510 | $ | 10,800 | $ | 28,026 | $ | 28,041 | |||||||||||
Ratio to average net assets of: | |||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.65 | % | 0.65 | % | 0.67 | % | 0.70 | %† | |||||||||||
Expenses, prior to (Waivers) and/or Recapture | 1.38 | % | 1.10 | % | 0.80 | % | 1.20 | %† | |||||||||||
Net investment income (loss), after (Waivers) and/or Recapture | (0.40 | )% | (0.27 | )% | (0.54 | )% | (0.56 | )%† | |||||||||||
Portfolio turnover rate †† | 68 | % | 91 | % | 63 | % | 13 | % | |||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | 0.01 | $ | (0.01 | ) | $ | 0.04 | $ | (0.04 | ) |
* Commencement of Investment Operations.
** Based on average shares outstanding.
*** The mean between the last bid and ask prices.
**** Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all dividends and distributions at share price during the period, and sale at the share price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
† Annualized.
†† Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
# The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
See Notes to Financial Statements.
66
Financial Highlights (Continued)
PowerShares Dynamic Insurance Portfolio
Year Ended April 30, | For the Period October 26, 2005* Through | ||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | April 30, 2006 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 11.66 | $ | 16.20 | $ | 18.84 | $ | 17.31 | $ | 15.44 | |||||||||||||
Net investment income** | 0.16 | 0.15 | 0.27 | ††† | 0.15 | 0.07 | |||||||||||||||||
Net realized and unrealized gain (loss) on investments | 3.86 | (4.54 | ) | (2.61 | ) | 1.51 | 1.86 | ||||||||||||||||
Total from investment operations | 4.02 | (4.39 | ) | (2.34 | ) | 1.66 | 1.93 | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.19 | ) | (0.15 | ) | (0.30 | ) | (0.13 | ) | (0.06 | ) | |||||||||||||
Net asset value at end of period | $ | 15.49 | $ | 11.66 | $ | 16.20 | $ | 18.84 | $ | 17.31 | |||||||||||||
Share price at end of period*** | $ | 15.84 | $ | 11.61 | |||||||||||||||||||
NET ASSET VALUE, TOTAL RETURN:**** | 34.85 | % | (27.26 | )% | (12.56 | )% | 9.62 | % | 12.54 | % | |||||||||||||
SHARE PRICE TOTAL RETURN**** | 35.53 | % | (27.53 | )% | |||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 18,592 | $ | 26,809 | $ | 34,012 | $ | 58,401 | $ | 31,164 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | 0.68 | %† | |||||||||||||
Expenses, prior to (Waivers) and/or Recapture | 1.23 | % | 0.98 | % | 0.82 | % | 0.96 | % | 0.87 | %† | |||||||||||||
Net investment income, after (Waivers) and/or Recapture | 1.20 | % | 1.13 | % | 1.54 | %††† | 0.87 | % | 0.81 | %† | |||||||||||||
Portfolio turnover rate †† | 72 | % | 52 | % | 82 | % | 40 | % | 30 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | 0.01 | $ | (0.01 | ) | $ | (0.03 | ) | $ | 0.01 | — |
PowerShares Dynamic Leisure and Entertainment Portfolio
Year Ended April 30, | For the Period June 23, 2005* Through | ||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | April 30, 2006 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 10.65 | $ | 15.11 | $ | 18.32 | $ | 16.29 | $ | 14.77 | |||||||||||||
Net investment income** | 0.05 | 0.10 | 0.12 | 0.07 | 0.03 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 5.88 | (4.46 | ) | (2.75 | ) | 2.05 | 1.51 | ||||||||||||||||
Total from investment operations | 5.93 | (4.36 | ) | (2.63 | ) | 2.12 | 1.54 | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.06 | ) | (0.10 | ) | (0.19 | ) | (0.08 | ) | (0.02 | ) | |||||||||||||
Return of capital | — | — | (0.39 | ) | (0.01 | ) | — | ||||||||||||||||
Total distributions | (0.06 | ) | (0.10 | ) | (0.58 | ) | (0.09 | ) | (0.02 | ) | |||||||||||||
Net asset value at end of period | $ | 16.52 | $ | 10.65 | $ | 15.11 | $ | 18.32 | $ | 16.29 | |||||||||||||
Share price at end of period*** | $ | 16.54 | $ | 10.63 | |||||||||||||||||||
NET ASSET VALUE, TOTAL RETURN:**** | 55.81 | % | (28.91 | )% | (14.58 | )% | 13.02 | % | 10.41 | % | |||||||||||||
SHARE PRICE TOTAL RETURN**** | 56.29 | % | (29.09 | )% | |||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 62,794 | $ | 12,776 | $ | 15,115 | $ | 49,472 | $ | 27,701 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.63 | % | 0.63 | % | 0.63 | % | 0.64 | % | 0.68 | %† | |||||||||||||
Expenses, prior to (Waivers) and/or Recapture | 1.06 | % | 1.65 | % | 0.95 | % | 1.07 | % | 1.03 | %† | |||||||||||||
Net investment income, after (Waivers) and/or Recapture | 0.41 | % | 0.96 | % | 0.70 | % | 0.42 | % | 0.22 | %† | |||||||||||||
Portfolio turnover rate †† | 68 | % | 50 | % | 58 | % | 35 | % | 48 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | (0.44 | ) | $ | (0.04 | ) | $ | (0.16 | ) | $ | 0.01 | — |
* Commencement of Investment Operations.
** Based on average shares outstanding.
*** The mean between the last bid and ask prices.
**** Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all dividends and distributions at share price during the period, and sale at the share price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
† Annualized.
†† Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
††† Net investment income per share and the ratio of net investment income to average net assets include a special cash dividend received of $2.00 per share owned of Progressive Corp. (The) on September 14, 2007. Net investment income per share and the ratio of net investment income to average net assets excluding the special dividend are $0.17 and 0.96%, respectively.
# The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
See Notes to Financial Statements.
67
Financial Highlights (Continued)
PowerShares Dynamic Media Portfolio
Year Ended April 30, | For the Period June 23, 2005* Through | ||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | April 30, 2006 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 8.25 | $ | 13.44 | $ | 16.48 | $ | 14.44 | $ | 14.93 | |||||||||||||
Net investment income** | 0.06 | 0.05 | 0.06 | 0.04 | 0.02 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 5.42 | (5.18 | ) | (2.82 | ) | 2.04 | (0.49 | ) | |||||||||||||||
Total from investment operations | 5.48 | (5.13 | ) | (2.76 | ) | 2.08 | (0.47 | ) | |||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.05 | ) | (0.04 | ) | (0.06 | ) | (0.04 | ) | (0.02 | ) | |||||||||||||
Return of capital | (0.00 | )(a) | (0.02 | ) | (0.22 | ) | — | — | |||||||||||||||
Total distributions | (0.05 | ) | (0.06 | ) | (0.28 | ) | (0.04 | ) | (0.02 | ) | |||||||||||||
Net asset value at end of period | $ | 13.68 | $ | 8.25 | $ | 13.44 | $ | 16.48 | $ | 14.44 | |||||||||||||
Share price at end of period*** | $ | 13.70 | $ | 8.26 | |||||||||||||||||||
NET ASSET VALUE, TOTAL RETURN:**** | 66.55 | % | (38.30 | )% | (16.91 | )% | 14.42 | % | (3.15 | )% | |||||||||||||
SHARE PRICE TOTAL RETURN**** | 66.59 | % | (38.31 | )% | |||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 125,875 | $ | 8,254 | $ | 30,923 | $ | 31,305 | $ | 24,543 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.63 | % | 0.63 | % | 0.63 | % | 0.64 | % | 0.68 | %† | |||||||||||||
Expenses, prior to (Waivers) and/or Recapture | 0.77 | % | 1.22 | % | 0.85 | % | 1.24 | % | 1.04 | %† | |||||||||||||
Net investment income (loss), after (Waivers) and/or Recapture | 0.51 | % | 0.52 | % | 0.36 | % | 0.25 | % | 0.19 | %† | |||||||||||||
Portfolio turnover rate †† | 50 | % | 69 | % | 62 | % | 43 | % | 68 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | (0.12 | ) | $ | 0.05 | $ | (0.04 | ) | $ | (0.01 | ) | — |
PowerShares Dynamic Networking Portfolio
Year Ended April 30, | For the Period June 23, 2005* Through | ||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | April 30, 2006 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 13.56 | $ | 16.04 | $ | 18.68 | $ | 17.38 | $ | 14.96 | |||||||||||||
Net investment income (loss)** | (0.09 | ) | (0.06 | ) | (0.09 | ) | (0.09 | ) | (0.08 | ) | |||||||||||||
Net realized and unrealized gain (loss) on investments | 7.61 | (2.42 | ) | (2.55 | ) | 1.39 | 2.50 | ||||||||||||||||
Total from investment operations | 7.52 | (2.48 | ) | (2.64 | ) | 1.30 | 2.42 | ||||||||||||||||
Net asset value at end of period | $ | 21.08 | $ | 13.56 | $ | 16.04 | $ | 18.68 | $ | 17.38 | |||||||||||||
Share price at end of period*** | $ | 21.11 | $ | 13.58 | |||||||||||||||||||
NET ASSET VALUE, TOTAL RETURN:**** | 55.46 | % | (15.46 | )% | (14.13 | )% | 7.48 | % | 16.18 | % | |||||||||||||
SHARE PRICE TOTAL RETURN**** | 55.45 | % | (15.28 | )% | |||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 47,437 | $ | 16,276 | $ | 12,831 | $ | 18,677 | $ | 27,806 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.63 | % | 0.63 | % | 0.63 | % | 0.64 | % | 0.68 | %† | |||||||||||||
Expenses, prior to (Waivers) and/or Recapture | 0.95 | % | 1.92 | % | 1.25 | % | 1.24 | % | 1.03 | %† | |||||||||||||
Net investment income (loss), after (Waivers) and/or Recapture | (0.50 | )% | (0.49 | )% | (0.51 | )% | (0.54 | )% | (0.59 | )%† | |||||||||||||
Portfolio turnover rate †† | 29 | % | 23 | % | 17 | % | 62 | % | 42 | % | |||||||||||||
Undistributed net investment income included in price of units issued and redeemed**# | $ | 0.02 | $ | 0.11 | $ | 0.01 | $ | 0.03 | — |
* Commencement of Investment Operations.
** Based on average shares outstanding.
*** The mean between the last bid and ask prices.
**** Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all dividends and distributions at share price during the period, and sale at the share price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
† Annualized.
†† Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
# The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(a) Amount represents less than $0.005.
See Notes to Financial Statements.
68
Financial Highlights (Continued)
PowerShares Dynamic Oil & Gas Services Portfolio
Year Ended April 30, | For the Period October 26, 2005* Through | ||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | April 30, 2006 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 13.09 | $ | 29.23 | $ | 22.70 | $ | 21.41 | $ | 16.43 | |||||||||||||
Net investment income (loss)** | 0.04 | 0.06 | (0.02 | ) | 0.00 | (a) | (0.01 | ) | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 4.98 | (16.16 | ) | 6.55 | 1.29 | 4.99 | |||||||||||||||||
Total from investment operations | 5.02 | (16.10 | ) | 6.53 | 1.29 | 4.98 | |||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.06 | ) | (0.04 | ) | — | — | — | ||||||||||||||||
Return of capital | (0.02 | ) | — | — | — | — | |||||||||||||||||
Total distributions | (0.08 | ) | (0.04 | ) | — | — | — | ||||||||||||||||
Net asset value at end of period | $ | 18.03 | $ | 13.09 | $ | 29.23 | $ | 22.70 | $ | 21.41 | |||||||||||||
Share price at end of period*** | $ | 18.28 | $ | 13.11 | |||||||||||||||||||
NET ASSET VALUE, TOTAL RETURN:**** | 38.41 | % | (55.04 | )% | 28.77 | % | 6.03 | % | 30.31 | % | |||||||||||||
SHARE PRICE TOTAL RETURN**** | 38.13 | % | (54.93 | )% | |||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 170,358 | $ | 155,716 | $ | 379,939 | $ | 272,456 | $ | 336,132 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.63 | % | 0.62 | % | 0.62 | % | 0.63 | % | 0.64 | %† | |||||||||||||
Expenses, prior to (Waivers) and/or Recapture | 0.63 | % | 0.61 | % | 0.60 | % | 0.65 | % | 0.67 | %† | |||||||||||||
Net investment income (loss), after (Waivers) and/or Recapture | 0.24 | % | 0.29 | % | (0.06 | )% | 0.02 | % | (0.10 | )%† | |||||||||||||
Portfolio turnover rate †† | 56 | % | 48 | % | 67 | % | 76 | % | 10 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | (0.00 | )(a) | $ | 0.00 | (a) | $ | 0.00 | (a) | $ | 0.00 | (a) | — |
PowerShares Dynamic Pharmaceuticals Portfolio
Year Ended April 30, | For the Period June 23, 2005* Through | ||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | April 30, 2006 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 13.91 | $ | 17.20 | $ | 19.61 | $ | 16.54 | $ | 14.84 | |||||||||||||
Net investment income** | 0.14 | 0.15 | 0.10 | 0.08 | 0.06 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 5.76 | (3.32 | ) | (2.45 | ) | 3.08 | 1.68 | ||||||||||||||||
Total from investment operations | 5.90 | (3.17 | ) | (2.35 | ) | 3.16 | 1.74 | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.26 | ) | (0.12 | ) | (0.06 | ) | (0.08 | ) | (0.04 | ) | |||||||||||||
Return of capital | — | — | — | (0.01 | ) | — | |||||||||||||||||
Total distributions | (0.26 | ) | (0.12 | ) | (0.06 | ) | (0.09 | ) | (0.04 | ) | |||||||||||||
Net asset value at end of period | $ | 19.55 | $ | 13.91 | $ | 17.20 | $ | 19.61 | $ | 16.54 | |||||||||||||
Share price at end of period*** | $ | 19.54 | $ | 13.92 | |||||||||||||||||||
NET ASSET VALUE, TOTAL RETURN:**** | 42.69 | % | (18.52 | )% | (11.99 | )% | 19.20 | % | 11.74 | % | |||||||||||||
SHARE PRICE TOTAL RETURN**** | 42.51 | % | (18.41 | )% | |||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 57,662 | $ | 104,349 | $ | 106,615 | $ | 82,345 | $ | 66,157 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | 0.66 | %† | |||||||||||||
Expenses, prior to (Waivers) and/or Recapture | 0.74 | % | 0.66 | % | 0.69 | % | 0.80 | % | 0.88 | %† | |||||||||||||
Net investment income, after (Waivers) and/or Recapture | 0.83 | % | 0.95 | % | 0.52 | % | 0.43 | % | 0.42 | %† | |||||||||||||
Portfolio turnover rate †† | 35 | % | 31 | % | 45 | % | 29 | % | 29 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | (0.04 | ) | $ | 0.00 | (a) | $ | (0.01 | ) | $ | (0.01 | ) | — |
* Commencement of Investment Operations.
** Based on average shares outstanding.
*** The mean between the last bid and ask prices.
**** Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all dividends and distributions at share price during the period, and sale at the share price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
† Annualized.
†† Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
# The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(a) Amount represents less than $0.005.
See Notes to Financial Statements.
69
Financial Highlights (Continued)
PowerShares Dynamic Retail Portfolio
Year Ended April 30, | For the Period October 26, 2005* Through | ||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | April 30, 2006 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 14.64 | $ | 15.99 | $ | 20.02 | $ | 18.29 | $ | 15.13 | |||||||||||||
Net investment income** | 0.06 | 0.05 | 0.04 | 0.07 | 0.01 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 4.08 | (1.36 | ) | (3.92 | ) | 1.71 | 3.16 | ||||||||||||||||
Total from investment operations | 4.14 | (1.31 | ) | (3.88 | ) | 1.78 | 3.17 | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.11 | ) | (0.04 | ) | (0.10 | ) | (0.05 | ) | (0.01 | ) | |||||||||||||
Return of capital | — | — | (0.05 | ) | — | — | |||||||||||||||||
Total distributions | (0.11 | ) | (0.04 | ) | (0.15 | ) | (0.05 | ) | (0.01 | ) | |||||||||||||
Net asset value at end of period | $ | 18.67 | $ | 14.64 | $ | 15.99 | $ | 20.02 | $ | 18.29 | |||||||||||||
Share price at end of period*** | $ | 19.03 | $ | 14.64 | |||||||||||||||||||
NET ASSET VALUE, TOTAL RETURN:**** | 28.49 | % | (8.11 | )% | (19.41 | )% | 9.72 | % | 20.98 | % | |||||||||||||
SHARE PRICE TOTAL RETURN**** | 28.56 | % | (8.11 | )% | |||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 24,273 | $ | 77,607 | $ | 14,391 | $ | 24,029 | $ | 23,783 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.63 | % | 0.63 | % | 0.63 | % | 0.64 | % | 0.70 | %† | |||||||||||||
Expenses, prior to (Waivers) and/or Recapture | 0.89 | % | 1.08 | % | 1.46 | % | 1.41 | % | 0.97 | %† | |||||||||||||
Net investment income, after (Waivers) and/or Recapture | 0.44 | % | 0.45 | % | 0.22 | % | 0.35 | % | 0.17 | %† | |||||||||||||
Portfolio turnover rate †† | 52 | % | 53 | % | 198 | % | 73 | % | 11 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | 0.10 | $ | (0.17 | ) | $ | (0.07 | ) | $ | 0.00 | (a) | — |
PowerShares Dynamic Semiconductors Portfolio
Year Ended April 30, | For the Period June 23, 2005* Through | ||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | April 30, 2006 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 10.39 | $ | 16.32 | $ | 19.05 | $ | 20.18 | $ | 14.93 | |||||||||||||
Net investment income (loss)** | 0.05 | 0.04 | (0.01 | ) | (0.04 | ) | (0.05 | ) | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 3.91 | (5.92 | ) | (2.72 | ) | (1.09 | ) | 5.30 | |||||||||||||||
Total from investment operations | 3.96 | (5.88 | ) | (2.73 | ) | (1.13 | ) | 5.25 | |||||||||||||||
Distribution to shareholder from: | |||||||||||||||||||||||
Net investment income | (0.06 | ) | (0.05 | ) | — | — | — | ||||||||||||||||
Return of capital | (0.00 | )(a) | — | — | — | — | |||||||||||||||||
Total distributions | (0.06 | ) | (0.05 | ) | — | — | — | ||||||||||||||||
Net asset value at end of period | $ | 14.29 | $ | 10.39 | $ | 16.32 | $ | 19.05 | $ | 20.18 | |||||||||||||
Share price at end of period*** | $ | 14.29 | $ | 10.39 | |||||||||||||||||||
NET ASSET VALUE, TOTAL RETURN:**** | 38.16 | % | (36.01 | )% | (14.33 | )% | (5.60 | )% | 35.16 | % | |||||||||||||
SHARE PRICE TOTAL RETURN**** | 38.16 | % | (36.01 | )% | |||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 28,573 | $ | 36,373 | $ | 75,056 | $ | 161,886 | $ | 106,929 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | 0.65 | %† | |||||||||||||
Expenses, prior to (Waivers) and/or Recapture | 0.90 | % | 0.82 | % | 0.67 | % | 0.78 | % | 0.75 | %† | |||||||||||||
Net investment income (loss), after (Waivers) and/or Recapture | 0.39 | % | 0.32 | % | (0.04 | )% | (0.23 | )% | (0.33 | )%† | |||||||||||||
Portfolio turnover rate †† | 68 | % | 65 | % | 56 | % | 51 | % | 42 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | (0.01 | ) | $ | (0.01 | ) | $ | 0.02 | $ | (0.01 | ) | — |
* Commencement of Investment Operations.
** Based on average shares outstanding.
*** The mean between the last bid and ask prices.
**** Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all dividends and distributions at share price during the period, and sale at the share price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
† Annualized.
†† Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
# The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(a) Amount represents less than $0.005.
See Notes to Financial Statements.
70
Financial Highlights (Continued)
PowerShares Dynamic Software Portfolio
Year Ended April 30, | For the Period June 23, 2005* Through | ||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | April 30, 2006 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 15.37 | $ | 17.53 | $ | 20.39 | $ | 18.44 | $ | 14.98 | |||||||||||||
Net investment income (loss)** | (0.07 | ) | (0.06 | ) | (0.10 | ) | (0.10 | ) | (0.08 | ) | |||||||||||||
Net realized and unrealized gain (loss) on investments | 7.24 | (2.10 | ) | (2.76 | ) | 2.05 | 3.54 | ||||||||||||||||
Total from investment operations | 7.17 | (2.16 | ) | (2.86 | ) | 1.95 | 3.46 | ||||||||||||||||
Net asset value at end of period | $ | 22.54 | $ | 15.37 | $ | 17.53 | $ | 20.39 | $ | 18.44 | |||||||||||||
Share price at end of period*** | $ | 22.55 | $ | 15.37 | |||||||||||||||||||
NET ASSET VALUE, TOTAL RETURN:**** | 46.65 | % | (12.32 | )% | (14.03 | )% | 10.57 | % | 23.10 | % | |||||||||||||
SHARE PRICE TOTAL RETURN**** | 46.71 | % | (12.37 | )% | |||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 67,626 | $ | 36,896 | $ | 35,055 | $ | 71,369 | $ | 49,799 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | 0.67 | %† | |||||||||||||
Expenses, prior to (Waivers) and/or Recapture | 0.75 | % | 0.97 | % | 0.78 | % | 0.83 | % | 0.91 | %† | |||||||||||||
Net investment income (loss), after (Waivers) and/or Recapture | (0.38 | )% | (0.42 | )% | (0.49 | )% | (0.51 | )% | (0.53 | )%† | |||||||||||||
Portfolio turnover rate †† | 33 | % | 53 | % | 64 | % | 59 | % | 75 | % | |||||||||||||
Undistributed net investment income included in price of units issued and redeemed**# | $ | 0.00 | (a) | $ | 0.02 | $ | 0.05 | $ | 0.00 | (a) | — |
* Commencement of Investment Operations.
** Based on average shares outstanding.
*** The mean between the last bid and ask prices.
**** Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all dividends and distributions at share price during the period, and sale at the share price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
† Annualized.
†† Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
# The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(a) Amount represents less than $0.005.
See Notes to Financial Statements.
71
Notes to Financial Statements
PowerShares Exchange-Traded Fund Trust
April 30, 2010
Note 1. Organization
PowerShares Exchange-Traded Fund Trust (the "Trust") was organized as a Massachusetts business trust on June 9, 2000 and is authorized to have multiple series of portfolios. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"). As of April 30, 2010, the Trust offered sixty-two portfolios. This report includes the following portfolios:
Full Name | Short Name | ||||||
PowerShares Dynamic Banking Portfolio | "Dynamic Banking Portfolio" | ||||||
PowerShares Dynamic Biotechnology & Genome Portfolio | "Dynamic Biotechnology & Genome Portfolio" | ||||||
PowerShares Dynamic Building & Construction Portfolio | "Dynamic Building & Construction Portfolio" | ||||||
PowerShares Dynamic Energy Exploration & Production Portfolio | "Dynamic Energy Exploration & Production Portfolio" | ||||||
PowerShares Dynamic Food & Beverage Portfolio | "Dynamic Food & Beverage Portfolio" | ||||||
PowerShares Dynamic Healthcare Services Portfolio | "Dynamic Healthcare Services Portfolio" | ||||||
PowerShares Dynamic Insurance Portfolio | "Dynamic Insurance Portfolio" | ||||||
PowerShares Dynamic Leisure and Entertainment Portfolio | "Dynamic Leisure and Entertainment Portfolio" | ||||||
PowerShares Dynamic Media Portfolio | "Dynamic Media Portfolio" | ||||||
PowerShares Dynamic Networking Portfolio | "Dynamic Networking Portfolio" | ||||||
PowerShares Dynamic Oil & Gas Services Portfolio | "Dynamic Oil & Gas Services Portfolio" | ||||||
PowerShares Dynamic Pharmaceuticals Portfolio | "Dynamic Pharmaceuticals Portfolio" | ||||||
PowerShares Dynamic Retail Portfolio | "Dynamic Retail Portfolio" | ||||||
PowerShares Dynamic Semiconductors Portfolio | "Dynamic Semiconductors Portfolio" | ||||||
PowerShares Dynamic Software Portfolio | "Dynamic Software Portfolio" | ||||||
Each portfolio (the "Fund" and collectively the "Funds") represents a separate series of the Trust. The shares of the Funds are referred to herein as "Shares" or "Fund's Shares." Each Fund's Shares are listed and traded on the NYSE Arca, Inc.
The Funds' market prices may differ to some degree from the net asset value ("NAV") of the Shares of each Fund. Unlike conventional mutual funds, each Fund issues and redeems Shares on a continuous basis, at NAV, only in a large specified number of Shares, each called a "Creation Unit." Creation Units of each Fund are issued and redeemed principally in-kind for securities included in a specified index. Except when aggregated in Creation Units, the Shares are not individually redeemable securities of the Funds.
72
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
The investment objective of each Fund is to seek investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the following indices (each, an "Underlying Index"):
Fund | Index | ||||||
Dynamic Banking Portfolio | Dynamic Banking IntellidexSM Index | ||||||
Dynamic Biotechnology & Genome Portfolio | Dynamic Biotechnology & Genome IntellidexSM Index | ||||||
Dynamic Building & Construction Portfolio | Dynamic Building & Construction IntellidexSM Index | ||||||
Dynamic Energy Exploration & Production Portfolio | Dynamic Energy Exploration & Production IntellidexSM Index | ||||||
Dynamic Food & Beverage Portfolio | Dynamic Food & Beverage IntellidexSM Index | ||||||
Dynamic Healthcare Services Portfolio | Dynamic Healthcare Services IntellidexSM Index | ||||||
Dynamic Insurance Portfolio | Dynamic Insurance IntellidexSM Index | ||||||
Dynamic Leisure and Entertainment Portfolio | Dynamic Leisure and Entertainment IntellidexSM Index | ||||||
Dynamic Media Portfolio | Dynamic Media IntellidexSM Index | ||||||
Dynamic Networking Portfolio | Dynamic Networking IntellidexSM Index | ||||||
Dynamic Oil & Gas Services Portfolio | Dynamic Oil Services IntellidexSM Index | ||||||
Dynamic Pharmaceuticals Portfolio | Dynamic Pharmaceuticals IntellidexSM Index | ||||||
Dynamic Retail Portfolio | Dynamic Retail IntellidexSM Index | ||||||
Dynamic Semiconductors Portfolio | Dynamic Semiconductors IntellidexSM Index | ||||||
Dynamic Software Portfolio | Dynamic Software IntellidexSM Index | ||||||
Note 2. Significant Accounting Policies
The preparation of the financial statements in accordance with Generally Accepted Accounting Principles ("GAAP") in the United States of America requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements, including estimates and assumptions related to taxation. Actual results could differ from these estimates. In addition, the Funds monitor for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
A. Security Valuation
Securities, including restricted securities, are valued according to the following policies.
A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. Listed options, if no closing price is available, are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices.
Investments in open-end registered investment companies not traded on an exchange are valued at the end of day NAV per share.
73
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the London world markets. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the New York Stock Exchange ("NYSE"), closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to refl ect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American Depositary Receipts and domestic and foreign index futures. Foreign securities may have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accou nting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources.
Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust's officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security's fair value.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer's assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
74
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
B. Other Risks
Replication Management Risk. The Funds are not "actively" managed and do not seek returns in excess of their respective Underlying Indices. Therefore, they would not necessarily sell a stock because the stock's issuer was in financial trouble unless that stock is removed from its Underlying Index.
Non-Diversified Fund Risk. Each Fund is considered non-diversified and can invest a greater portion of its assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single investment could cause greater fluctuations in Share price than would occur in a diversified fund.
Concentration Risk. If a Fund concentrates its investments in an industry or group of industries, the value of the Fund's Shares may rise and fall more than the value of shares of a fund that invests in a broader range of securities.
Non-Correlation Risk. Each Fund's return may not match the return of its Underlying Index for a number of reasons. For example, each Fund incurs operating expenses not applicable to its Underlying Index, and incurs costs in buying and selling securities, especially when rebalancing the securities holdings to reflect changes in the composition of its Underlying Index. In addition, the performance of each Fund and its Underlying Index may vary due to asset valuation differences and differences between each Fund's portfolio and its Underlying Index resulting from legal restrictions, cost or liquidity constraints.
C. Federal Income Taxes
Each Fund intends to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of the Fund's taxable earnings to its shareholders. As such, the Funds will not be subject to Federal income taxes on otherwise taxable income (including net realized gains) that is distributed to the shareholders. Therefore, no provision for Federal income taxes is recorded in the financial statements.
Income and capital gain distributions are determined in accordance with Federal income tax regulations, which may differ from GAAP. These differences are primarily due to differing book and tax treatments for in-kind transactions, losses deferred due to wash sales, and passive foreign investment company adjustments, if any.
The Funds file tax returns in the United States Federal jurisdiction and certain other jurisdictions. Generally, a Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
D. Investment Income and Investment Transactions
Dividend income is recorded on the ex-dividend date net of foreign taxes withheld, if any. Interest income is recorded on the accrual basis. Investment transactions are recorded on the trade date. Realized gains and losses from the sale or disposition of securities are calculated on the specific identified cost basis. Dividends and interest received by a Fund may give rise to withholding and other taxes imposed by foreign countries. Corporate actions (including cash dividends) are recorded net of non-reclaimable foreign tax withholdings on the ex-dividend date. Tax conventions between certain countries and the United States may reduce or eliminate such taxes.
75
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
E. Expenses
Expenses of the Trust, which are directly identifiable to a specific Fund, are applied to that Fund. Expenses which are not readily identifiable to a specific Fund are allocated in such a manner as deemed equitable, taking into consideration the nature and type of expense and the relative net assets of each Fund.
Each Fund is responsible for all of its expenses, including the investment advisory fees, costs of transfer agency, custody, fund administration, legal, audit and other services, interest, taxes, brokerage commissions and other expenses connected with executions of portfolio transactions, any distribution fees or expenses and extraordinary expenses.
F. Dividends and Distributions to Shareholders
Each Fund declares and pays dividends from net investment income, if any, to its shareholders quarterly and recorded on ex-dividend date. Each Fund distributes net realized taxable capital gains, if any, generally annually in cash and recorded on ex-dividend date. Such distributions on a tax basis are determined in conformity with income tax regulations which may differ from GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in such Fund's financial statements as a tax return of capital at fiscal period-end.
G. Equalization
All Funds use the accounting practice of equalization. This accounting method is used to keep the continuing shareholder's per Share equity in undistributed net investment income from being affected by the continuous sales and redemptions of capital Shares. Equalization is calculated on a per Share basis whereby a portion of the proceeds from the sales and cost of repurchases of capital Shares is applied to undistributed net investment income. The amount of equalization is disclosed in the Statements of Changes in Net Assets as undistributed net investment income (loss) included in the price of capital Shares issued or redeemed. The distributions to shareholders of amounts so applied may be deemed to be a return of capital for tax purposes to the extent that such distributions exceed taxable income.
Note 3. Investment Advisory Agreement and Other Agreements
The Trust has entered into an Investment Advisory Agreement with Invesco PowerShares Capital Management LLC (the "Adviser") pursuant to which the Adviser has overall responsibility as the Funds' investment adviser for the selection and ongoing monitoring of the Funds' investments, managing the Funds' business affairs and providing certain clerical, bookkeeping and other administrative services. Each Fund has agreed to pay the Adviser an annual fee of 0.50% of the Fund's average daily net assets.
The Adviser has entered into an Amended and Restated Excess Expense Agreement (the "Excess Expense Agreement") with the Trust pursuant to which the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of each Fund (excluding interest expense, brokerage commissions and other trading expenses, sub-licensing fees, offering costs, taxes and extraordinary expenses) from exceeding 0.60% of the Fund's average daily net assets per year (the "Expense Cap"), at least until August 31, 2011. Offering costs excluded from the Expense Cap are: (a) initial legal fees pertaining to the Funds' Shares offered for sale; (b) initial Securities and Exchange Commission and state registration fees; and (c) initial fees paid to be listed on an exchange.
The Excess Expense Agreement provides that the expenses borne by the Adviser are subject to recapture by the Adviser for up to three years from the date the fee or expense was borne by the Adviser, but no
76
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
recapture payment will be made by a Fund if it would result in the Fund exceeding its Expense Cap as specified above.
The net amount of fees waived and other expenses assumed by the Adviser and the amount of recapture paid to the Adviser pursuant to the Excess Expense Agreement are collectively referred to as "(Waivers) and/or Recapture". The net amounts of (Waivers) and/or Recapture for the fiscal year ended April 30, 2010 are shown on the Statements of Operations.
The amounts available for potential future recapture by the Adviser under the Excess Expense Agreement and the expiration schedule at April 30, 2010 are as follows:
Total Potential | Potential Recapture Amounts Expiring | ||||||||||||||||||
Recapture Amounts | 04/30/11 | 04/30/12 | 04/30/13 | ||||||||||||||||
Dynamic Banking Portfolio | $ | 280,262 | $ | 74,803 | $ | 81,730 | $ | 123,729 | |||||||||||
Dynamic Biotechnology & Genome Portfolio | 38,784 | 9,170 | 18,040 | 11,574 | |||||||||||||||
Dynamic Building & Construction Portfolio | 293,101 | 117,728 | 104,482 | 70,891 | |||||||||||||||
Dynamic Energy Exploration & Production Portfolio | 182,034 | 33,825 | 71,755 | 76,454 | |||||||||||||||
Dynamic Food & Beverage Portfolio | 237,336 | 106,057 | 64,520 | 66,759 | |||||||||||||||
Dynamic Healthcare Services Portfolio | 271,498 | 73,787 | 98,004 | 99,707 | |||||||||||||||
Dynamic Insurance Portfolio | 308,441 | 94,552 | 101,777 | 112,112 | |||||||||||||||
Dynamic Leisure and Entertainment Portfolio | 315,404 | 109,307 | 111,337 | 94,760 | |||||||||||||||
Dynamic Media Portfolio | 278,465 | 99,230 | 108,094 | 71,141 | |||||||||||||||
Dynamic Networking Portfolio | 319,720 | 118,952 | 110,045 | 90,723 | |||||||||||||||
Dynamic Oil & Gas Services Portfolio | 327 | — | — | 327 | |||||||||||||||
Dynamic Pharmaceuticals Portfolio | 179,396 | 62,631 | 42,897 | 73,868 | |||||||||||||||
Dynamic Retail Portfolio | 320,938 | 119,462 | 107,811 | 93,665 | |||||||||||||||
Dynamic Semiconductors Portfolio | 239,300 | 55,112 | 92,088 | 92,100 | |||||||||||||||
Dynamic Software Portfolio | 259,858 | 92,188 | 98,470 | 69,200 |
The Trust has entered into a Distribution Agreement with Invesco Distributors, Inc. (formerly, Invesco Aim Distributors, Inc.) (the "Distributor"), which serves as the distributor of Creation Units for each Fund. The Distributor does not maintain a secondary market in the Shares.
The Adviser has entered into a licensing agreement for each Fund with the NYSE Arca (the "Licensor"). Each Underlying Index name trademark is owned by the respective Licensor. These trademarks have been licensed to the Adviser for use with the Funds. The Funds are not sponsored, endorsed, sold or promoted by the Licensor and the Licensor makes no representation regarding the advisability of investing in any of these Funds.
The Trust has entered into a sub-licensing agreement under which the Funds are required to pay the sub-licensing fees, which are shown on the Statements of Operations.
The Trust has entered into service agreements whereby The Bank of New York Mellon, a wholly-owned subsidiary of The Bank of New York Mellon Corporation, serves as the administrator, custodian, fund accountant and transfer agent for each Fund.
77
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
Note 4. Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3) generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment's assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of April 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
Investment in Securities | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Dynamic Banking Portfolio | |||||||||||||||||||
Equity Securities | $ | 25,380,961 | $ | — | $ | — | $ | 25,380,961 | |||||||||||
Money Market Fund | 82,678 | — | — | 82,678 | |||||||||||||||
Total Investments | 25,463,639 | — | — | 25,463,639 | |||||||||||||||
Dynamic Biotechnology & Genome Portfolio | |||||||||||||||||||
Equity Securities | 214,549,000 | — | — | 214,549,000 | |||||||||||||||
Money Market Fund | 33,426 | — | — | 33,426 | |||||||||||||||
Total Investments | 214,582,426 | — | — | 214,582,426 | |||||||||||||||
Dynamic Building & Construction Portfolio | |||||||||||||||||||
Equity Securities | 50,108,114 | — | — | 50,108,114 | |||||||||||||||
Money Market Fund | 54,123 | — | — | 54,123 | |||||||||||||||
Total Investments | 50,162,237 | — | — | 50,162,237 |
78
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
Investment in Securities | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Dynamic Energy Exploration & Production Portfolio | |||||||||||||||||||
Equity Securities | $ | 59,927,683 | $ | — | $ | — | $ | 59,927,683 | |||||||||||
Money Market Fund | 62,144 | — | — | 62,144 | |||||||||||||||
Total Investments | 59,989,827 | — | — | 59,989,827 | |||||||||||||||
Dynamic Food & Beverage Portfolio | |||||||||||||||||||
Equity Securities | 72,774,691 | — | — | 72,774,691 | |||||||||||||||
Money Market Fund | 12,054 | — | — | 12,054 | |||||||||||||||
Total Investments | 72,786,745 | — | — | 72,786,745 | |||||||||||||||
Dynamic Healthcare Services Portfolio | |||||||||||||||||||
Equity Securities | 21,522,274 | — | — | 21,522,274 | |||||||||||||||
Money Market Fund | 32,189 | — | — | 32,189 | |||||||||||||||
Total Investments | 21,554,463 | — | — | 21,554,463 | |||||||||||||||
Dynamic Insurance Portfolio | |||||||||||||||||||
Equity Securities | 18,597,474 | — | — | 18,597,474 | |||||||||||||||
Money Market Fund | 42,783 | — | — | 42,783 | |||||||||||||||
Total Investments | 18,640,257 | — | — | 18,640,257 | |||||||||||||||
Dynamic Leisure and Entertainment Portfolio | |||||||||||||||||||
Equity Securities | 62,784,648 | — | — | 62,784,648 | |||||||||||||||
Money Market Fund | 40,844 | — | — | 40,844 | |||||||||||||||
Total Investments | 62,825,492 | — | — | 62,825,492 | |||||||||||||||
Dynamic Media Portfolio | |||||||||||||||||||
Equity Securities | 125,877,126 | — | — | 125,877,126 | |||||||||||||||
Money Market Fund | 72,119 | — | — | 72,119 | |||||||||||||||
Total Investments | 125,949,245 | — | — | 125,949,245 | |||||||||||||||
Dynamic Networking Portfolio | |||||||||||||||||||
Equity Securities | 47,468,808 | — | — | 47,468,808 | |||||||||||||||
Money Market Fund | 19,641 | — | — | 19,641 | |||||||||||||||
Total Investments | 47,488,449 | — | — | 47,488,449 | |||||||||||||||
Dynamic Oil & Gas Services Portfolio | |||||||||||||||||||
Equity Securities | 170,502,454 | — | — | 170,502,454 | |||||||||||||||
Money Market Fund | 11,625 | — | — | 11,625 | |||||||||||||||
Total Investments | 170,514,079 | — | — | 170,514,079 |
79
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
Investment in Securities | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Dynamic Pharmaceuticals Portfolio | |||||||||||||||||||
Equity Securities | $ | 57,671,942 | $ | — | $ | — | $ | 57,671,942 | |||||||||||
Money Market Fund | 16,592 | — | — | 16,592 | |||||||||||||||
Total Investments | 57,688,534 | — | — | 57,688,534 | |||||||||||||||
Dynamic Retail Portfolio | |||||||||||||||||||
Equity Securities | 24,274,596 | — | — | 24,274,596 | |||||||||||||||
Money Market Fund | 36,352 | — | — | 36,352 | |||||||||||||||
Total Investments | 24,310,948 | — | — | 24,310,948 | |||||||||||||||
Dynamic Semiconductors Portfolio | |||||||||||||||||||
Equity Securities | 28,584,372 | — | — | 28,584,372 | |||||||||||||||
Money Market Fund | 36,256 | — | — | 36,256 | |||||||||||||||
Total Investments | 28,620,628 | — | — | 28,620,628 | |||||||||||||||
Dynamic Software Portfolio | |||||||||||||||||||
Equity Securities | 67,673,076 | — | — | 67,673,076 | |||||||||||||||
Money Market Fund | 17,717 | — | — | 17,717 | |||||||||||||||
Total Investments | 67,690,793 | — | — | 67,690,793 |
Note 5. Distributions to Shareholders and Tax Components of Net Assets
Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended April 30, 2010 and 2009:
2010 | 2009 | ||||||||||||||||||
Ordinary Income | Return of Capital | Ordinary Income | Return of Capital | ||||||||||||||||
Dynamic Banking Portfolio | $ | 1,325,518 | $ | 13,214 | $ | 3,373,727 | $ | — | |||||||||||
Dynamic Biotechnology & Genome Portfolio | 647,086 | 217,733 | — | — | |||||||||||||||
Dynamic Building & Construction Portfolio | 71,961 | — | 22,670 | — | |||||||||||||||
Dynamic Energy Exploration & Production Portfolio | 238,490 | 49,129 | 345,726 | — | |||||||||||||||
Dynamic Food & Beverage Portfolio | 1,083,897 | — | 1,004,394 | — | |||||||||||||||
Dynamic Insurance Portfolio | 260,945 | — | 304,900 | — | |||||||||||||||
Dynamic Leisure and Entertainment Portfolio | 72,405 | — | 101,048 | — | |||||||||||||||
Dynamic Media Portfolio | 252,182 | 22,607 | 95,850 | 48,916 | |||||||||||||||
Dynamic Oil & Gas Services Portfolio | 642,185 | 258,092 | 543,711 | — | |||||||||||||||
Dynamic Pharmaceuticals Portfolio | 992,451 | — | 949,059 | — | |||||||||||||||
Dynamic Retail Portfolio | 196,273 | — | 48,268 | — | |||||||||||||||
Dynamic Semiconductors Portfolio | 146,532 | 8,521 | 141,000 | — |
80
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
Tax Components of Net Assets at Fiscal Year-End:
Undistributed Ordinary Income | Temporary Book/Tax Differences | Net Unrealized Appreciation (Depreciation) | Capital Loss Carryforward | Post-October* Deferrals | Shares of Beneficial Interest | Total Net Assets | |||||||||||||||||||||||||
Dynamic Banking Portfolio | $ | — | $ | (4,517 | ) | $ | 3,468,552 | $ | (46,303,723 | ) | $ | (2,160,225 | ) | $ | 70,403,802 | $ | 25,403,889 | ||||||||||||||
Dynamic Biotechnology & Genome Portfolio | — | (6,773 | ) | 22,700,467 | (120,436,151 | ) | (1,880,918 | ) | 314,013,884 | 214,390,509 | |||||||||||||||||||||
Dynamic Building & Construction Portfolio | 10,109 | (3,290 | ) | 9,733,662 | (8,850,482 | ) | (3,897,277 | ) | 53,121,651 | 50,114,373 | |||||||||||||||||||||
Dynamic Energy Exploration & Production Portfolio | — | (4,673 | ) | 7,360,152 | (32,513,391 | ) | (421,275 | ) | 85,561,781 | 59,982,594 | |||||||||||||||||||||
Dynamic Food & Beverage Portfolio | 183,753 | (4,061 | ) | 7,807,763 | (21,489,865 | ) | — | 86,297,093 | 72,794,683 | ||||||||||||||||||||||
Dynamic Healthcare Services Portfolio | — | (3,263 | ) | 2,113,072 | (12,548,961 | ) | (50,509 | ) | 31,999,433 | 21,509,772 | |||||||||||||||||||||
Dynamic Insurance Portfolio | 29,873 | (3,230 | ) | 1,746,388 | (11,117,052 | ) | (624,569 | ) | 28,560,242 | 18,591,652 | |||||||||||||||||||||
Dynamic Leisure and Entertainment Portfolio | 23,484 | (2,920 | ) | 6,237,196 | (10,260,933 | ) | (79,387 | ) | 66,876,939 | 62,794,379 | |||||||||||||||||||||
Dynamic Media Portfolio | — | (3,118 | ) | 15,761,117 | (16,330,554 | ) | (14,826 | ) | 126,462,445 | 125,875,064 | |||||||||||||||||||||
Dynamic Networking Portfolio | — | (2,894 | ) | 7,457,309 | (5,875,102 | ) | (6,418 | ) | 45,864,110 | 47,437,005 | |||||||||||||||||||||
Dynamic Oil & Gas Services Portfolio | — | (8,321 | ) | 24,330,355 | (132,785,704 | ) | (25,459,314 | ) | 304,280,720 | 170,357,736 | |||||||||||||||||||||
Dynamic Pharmaceuticals Portfolio | 33,935 | (4,890 | ) | (951,044 | ) | (20,227,411 | ) | (2,555,362 | ) | 81,366,751 | 57,661,979 | ||||||||||||||||||||
Dynamic Retail Portfolio | 22,330 | (3,191 | ) | (857,775 | ) | (7,089,821 | ) | (341,575 | ) | 32,542,850 | 24,272,818 | ||||||||||||||||||||
Dynamic Semiconductors Portfolio | — | (3,887 | ) | 2,216,330 | (44,531,148 | ) | (635,065 | ) | 71,527,190 | 28,573,420 | |||||||||||||||||||||
Dynamic Software Portfolio | — | (3,480 | ) | 8,245,893 | (14,701,968 | ) | (462,129 | ) | 74,547,956 | 67,626,272 |
* Capital loss incurred after October 31 ("Post-October losses") within the taxable year are deemed to arise on the first business day of each Fund's next taxable year.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Funds to utilize. The ability to utilize capital loss carryforward in the future may be limited under Internal Revenue Code rules and related regulations based on the results of future transactions.
The following Funds have capital loss carryforward amounts as of April 30, 2010, which expire on April 30 of each year listed below:
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | Total* | |||||||||||||||||||||||||
Dynamic Banking Portfolio | $ | — | $ | — | $ | — | $ | 1,146,630 | $ | 16,399,927 | $ | 28,757,166 | $ | 46,303,723 | |||||||||||||||||
Dynamic Biotechnology & Genome Portfolio | — | 321,497 | 19,612,223 | 15,818,255 | 34,286,844 | 50,397,332 | 120,436,151 | ||||||||||||||||||||||||
Dynamic Building & Construction Portfolio | — | — | 2,263,182 | 742,893 | 2,843,349 | 3,001,058 | 8,850,482 | ||||||||||||||||||||||||
Dynamic Energy Exploration & Production Portfolio | — | — | 285,311 | 3,232,521 | 7,646,917 | 21,348,642 | 32,513,391 | ||||||||||||||||||||||||
Dynamic Food & Beverage Portfolio | — | 433,620 | 1,965,652 | 1,260,041 | 7,585,250 | 10,245,302 | 21,489,865 | ||||||||||||||||||||||||
Dynamic Healthcare Services Portfolio | — | — | — | 1,525,186 | 5,942,546 | 5,081,229 | 12,548,961 |
81
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | Total* | |||||||||||||||||||||||||
Dynamic Insurance Portfolio | $ | — | $ | — | $ | 774,301 | $ | 2,181,744 | $ | 4,422,035 | $ | 3,738,972 | $ | 11,117,052 | |||||||||||||||||
Dynamic Leisure and Entertainment Portfolio | — | 751,908 | 1,611,839 | 2,111,801 | 2,895,936 | 2,889,449 | 10,260,933 | ||||||||||||||||||||||||
Dynamic Media Portfolio | — | 545,973 | 3,187,134 | 2,505,039 | 4,930,761 | 5,161,647 | 16,330,554 | ||||||||||||||||||||||||
Dynamic Networking Portfolio | — | 383,187 | 1,939,441 | 1,064,275 | 1,975,581 | 512,618 | 5,875,102 | ||||||||||||||||||||||||
Dynamic Oil & Gas Services Portfolio | — | — | 15,026,862 | 7,909,602 | 24,680,663 | 85,168,577 | 132,785,704 | ||||||||||||||||||||||||
Dynamic Pharmaceuticals Portfolio | 164,751 | 66,659 | 644,797 | 1,727,610 | 2,128,715 | 15,494,879 | 20,227,411 | ||||||||||||||||||||||||
Dynamic Retail Portfolio | — | — | 937,070 | 1,908,967 | 2,427,604 | 1,816,180 | 7,089,821 | ||||||||||||||||||||||||
Dynamic Semiconductors Portfolio | — | 271,588 | 9,158,832 | 10,196,415 | 14,001,359 | 10,902,954 | 44,531,148 | ||||||||||||||||||||||||
Dynamic Software Portfolio | — | 108,427 | 3,017,278 | 1,542,190 | 7,095,351 | 2,938,722 | 14,701,968 |
* Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code.
Note 6. Investment Transactions
For the fiscal year ended April 30, 2010, the cost of securities purchased and proceeds from sales of securities, excluding short-term securities, money market funds and in-kind transactions, were as follows:
Purchases | Sales | ||||||||||
Dynamic Banking Portfolio | $ | 26,046,007 | $ | 27,800,741 | |||||||
Dynamic Biotechnology & Genome Portfolio | 156,951,251 | 144,091,073 | |||||||||
Dynamic Building & Construction Portfolio | 30,407,090 | 31,384,193 | |||||||||
Dynamic Energy Exploration & Production Portfolio | 38,901,790 | 38,281,521 | |||||||||
Dynamic Food & Beverage Portfolio | 39,109,585 | 40,300,898 | |||||||||
Dynamic Healthcare Services Portfolio | 9,650,910 | 9,256,462 | |||||||||
Dynamic Insurance Portfolio | 13,724,289 | 13,769,516 | |||||||||
Dynamic Leisure and Entertainment Portfolio | 16,306,004 | 15,777,826 | |||||||||
Dynamic Media Portfolio | 31,993,013 | 27,134,626 | |||||||||
Dynamic Networking Portfolio | 10,566,042 | 8,118,349 | |||||||||
Dynamic Oil & Gas Services Portfolio | 100,297,853 | 132,845,911 | |||||||||
Dynamic Pharmaceuticals Portfolio | 23,859,933 | 24,223,660 | |||||||||
Dynamic Retail Portfolio | 19,433,197 | 22,421,196 | |||||||||
Dynamic Semiconductors Portfolio | 23,112,097 | 23,467,237 | |||||||||
Dynamic Software Portfolio | 22,278,505 | 18,102,315 |
For the fiscal year ended April 30, 2010, in-kind transactions associated with creations and redemptions were as follows:
Securities Received | Securities Delivered | ||||||||||
Dynamic Banking Portfolio | $ | 31,049,299 | $ | 81,036,212 | |||||||
Dynamic Biotechnology & Genome Portfolio | 115,187,002 | 124,434,619 | |||||||||
Dynamic Building & Construction Portfolio | 42,108,879 | 51,937,794 | |||||||||
Dynamic Energy Exploration & Production Portfolio | 46,944,617 | 57,724,669 |
82
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
Securities Received | Securities Delivered | ||||||||||
Dynamic Food & Beverage Portfolio | $ | 73,939,596 | $ | 101,529,161 | |||||||
Dynamic Healthcare Services Portfolio | 20,103,951 | 13,751,882 | |||||||||
Dynamic Insurance Portfolio | 14,295,465 | 27,886,327 | |||||||||
Dynamic Leisure and Entertainment Portfolio | 74,150,798 | 35,190,416 | |||||||||
Dynamic Media Portfolio | 125,667,800 | 36,949,450 | |||||||||
Dynamic Networking Portfolio | 40,050,017 | 23,475,329 | |||||||||
Dynamic Oil & Gas Services Portfolio | 115,566,621 | 123,926,515 | |||||||||
Dynamic Pharmaceuticals Portfolio | 21,473,264 | 93,561,646 | |||||||||
Dynamic Retail Portfolio | 84,763,583 | 141,047,880 | |||||||||
Dynamic Semiconductors Portfolio | 36,208,717 | 53,934,071 | |||||||||
Dynamic Software Portfolio | 63,131,287 | 56,879,565 |
Gains and (losses) on in-kind transactions are generally not considered taxable gains (losses) for Federal income tax purposes.
At April 30, 2010, the aggregate cost and the net unrealized appreciation (depreciation) of investments for tax purposes were as follows:
Cost | Net Unrealized Appreciation (Depreciation) | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | ||||||||||||||||
Dynamic Banking Portfolio | $ | 21,995,087 | $ | 3,468,552 | $ | 3,845,579 | $ | (377,027 | ) | ||||||||||
Dynamic Biotechnology & Genome Portfolio | 191,881,959 | 22,700,467 | 28,737,307 | (6,036,840 | ) | ||||||||||||||
Dynamic Building & Construction Portfolio | 40,428,575 | 9,733,662 | 10,091,865 | (358,203 | ) | ||||||||||||||
Dynamic Energy Exploration & Production Portfolio | 52,629,675 | 7,360,152 | 9,179,711 | (1,819,559 | ) | ||||||||||||||
Dynamic Food & Beverage Portfolio | 64,978,982 | 7,807,763 | 8,065,946 | (258,183 | ) | ||||||||||||||
Dynamic Healthcare Services Portfolio | 19,441,391 | 2,113,072 | 2,338,749 | (225,677 | ) | ||||||||||||||
Dynamic Insurance Portfolio | 16,893,869 | 1,746,388 | 2,044,429 | (298,041 | ) | ||||||||||||||
Dynamic Leisure and Entertainment Portfolio | 56,588,296 | 6,237,196 | 6,237,196 | — | |||||||||||||||
Dynamic Media Portfolio | 110,188,128 | 15,761,117 | 16,824,226 | (1,063,109 | ) | ||||||||||||||
Dynamic Networking Portfolio | 40,031,140 | 7,457,309 | 7,879,233 | (421,924 | ) | ||||||||||||||
Dynamic Oil & Gas Services Portfolio | 146,183,724 | 24,330,355 | 28,882,733 | (4,552,378 | ) | ||||||||||||||
Dynamic Pharmaceuticals Portfolio | 58,639,578 | (951,044 | ) | 6,690,237 | (7,641,281 | ) | |||||||||||||
Dynamic Retail Portfolio | 25,168,723 | (857,775 | ) | 26,516 | (884,291 | ) | |||||||||||||
Dynamic Semiconductors Portfolio | 26,404,298 | 2,216,330 | 3,180,527 | (964,197 | ) | ||||||||||||||
Dynamic Software Portfolio | 59,444,900 | 8,245,893 | 8,630,640 | (384,747 | ) |
83
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
Note 7. Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of investment activity, on April 30, 2010, amounts were reclassified between undistributed net investment income (loss), undistributed net realized gain (loss) and Shares of beneficial interest. These reclassifications had no effect on the net assets of each Fund. For the fiscal year ended April 30, 2010, the reclassifications were as follows:
Undistributed Net Investment Income (Loss) | Undistributed Net Realized Gain (Loss) | Shares of Beneficial Interest | |||||||||||||
Dynamic Banking Portfolio | $ | 24,372 | $ | 6,989,291 | $ | (7,013,663 | ) | ||||||||
Dynamic Biotechnology & Genome Portfolio | 281,186 | (37,300,266 | ) | 37,019,080 | |||||||||||
Dynamic Building & Construction Portfolio | 20,556 | (7,116,660 | ) | 7,096,104 | |||||||||||
Dynamic Energy Exploration & Production Portfolio | (81,190 | ) | (11,558,922 | ) | 11,640,112 | ||||||||||
Dynamic Food & Beverage Portfolio | 275,996 | (11,510,706 | ) | 11,234,710 | |||||||||||
Dynamic Healthcare Services Portfolio | 50,268 | (1,627,810 | ) | 1,577,542 | |||||||||||
Dynamic Insurance Portfolio | (15,651 | ) | (1,154,666 | ) | 1,170,317 | ||||||||||
Dynamic Leisure and Entertainment Portfolio | 764,293 | (5,673,014 | ) | 4,908,721 | |||||||||||
Dynamic Media Portfolio | 541,259 | (6,781,061 | ) | 6,239,802 | |||||||||||
Dynamic Networking Portfolio | 113,068 | (5,603,802 | ) | 5,490,734 | |||||||||||
Dynamic Oil & Gas Services Portfolio | 261,127 | (6,280,393 | ) | 6,019,266 | |||||||||||
Dynamic Pharmaceuticals Portfolio | 161,901 | 1,322,889 | (1,484,790 | ) | |||||||||||
Dynamic Retail Portfolio | (241,079 | ) | (24,670,186 | ) | 24,911,265 | ||||||||||
Dynamic Semiconductors Portfolio | 35,163 | (6,493,420 | ) | 6,458,257 | |||||||||||
Dynamic Software Portfolio | 203,376 | (14,413,744 | ) | 14,210,368 |
Note 8. Trustees' Fees
The Funds compensate each Trustee who is not an employee of the Adviser or its affiliates. The "Interested" Trustees of the Trust do not receive any Trustees' fees.
The Trust has adopted a deferred compensation plan (the "Plan"). Under the Plan, a Trustee who is not an "interested person" (as defined in the 1940 Act) (an "Independent Trustee") and has executed a Deferred Fee Agreement (a "Participating Trustee") may defer receipt of all or a portion of his compensation ("Deferral Fees"). Such Deferral Fees are deemed to be invested in selected PowerShares Funds. The Deferral Fees payable to the Participating Trustee are valued as of the date such Deferral Fees would have been paid to the Participating Trustee. The value increases with contributions or with increases in the value of the Shares selected, and the value decreases with distributions or with declines in the value of the Shares selected.
Note 9. Capital
Shares are created and redeemed by the Trust only in Creation Unit size aggregations of 50,000 Shares. Only Authorized Participants are permitted to purchase or redeem Creation Units from the Funds. Such transactions are generally permitted on an in-kind basis, with a balancing cash component to equate the transaction to the NAV per Share of each Fund of the Trust on the transaction date. Cash may be substituted equivalent to the value of certain securities generally when they are not available in sufficient
84
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
quantity for delivery, not eligible for trading by the Authorized Participant or as a result of other market circumstances.
Note 10. Indemnifications
Under the Trust's organizational documents, its officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. Each Independent Trustee is also indemnified against certain liabilities arising out of the performance of his duties to the Trust pursuant to an Indemnification Agreement between the Independent Trustee and the Trust. Additionally, in the normal course of business, the Trust enters into contracts with service providers that contain general indemnification clauses. The Trust's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred. However, based on experience, the Trust believes the risk of loss to be remote.
85
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of PowerShares Exchange-Traded Fund Trust:
In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of each of the portfolios indicated in Note 1 of the financial statements (each a portfolio of PowerShares Exchange-Traded Fund Trust, hereafter referred to as the "Trust") at April 30, 2010, and the results of each of their operations, the changes in each of their net assets, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Trust's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at April 30, 2010 by correspondence with the custodian and brokers, and the application of alternative auditing procedures where securities purchased had not been received, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
New York, New York
June 28, 2010
86
Tax Information
Form 1099-DIV, Form 1042-S and other year-end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisers.
The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state's requirement.
Each Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended April 30, 2010:
Federal Income Tax Information
Qualified dividend income* | Corporate dividends- received deduction* | ||||||||||
Dynamic Banking Portfolio | 100 | % | 100 | % | |||||||
Dynamic Biotechnology & Genome Portfolio | 100 | % | 100 | % | |||||||
Dynamic Building & Construction Portfolio | 100 | % | 100 | % | |||||||
Dynamic Energy Exploration & Production Portfolio | 100 | % | 100 | % | |||||||
Dynamic Food & Beverage Portfolio | 100 | % | 100 | % | |||||||
Dynamic Healthcare Services Portfolio | 0 | % | 0 | % | |||||||
Dynamic Insurance Portfolio | 100 | % | 100 | % | |||||||
Dynamic Leisure and Entertainment Portfolio | 100 | % | 100 | % | |||||||
Dynamic Media Portfolio | 100 | % | 100 | % | |||||||
Dynamic Networking Portfolio | 0 | % | 0 | % | |||||||
Dynamic Oil & Gas Services Portfolio | 100 | % | 100 | % | |||||||
Dynamic Pharmaceuticals Portfolio | 100 | % | 100 | % | |||||||
Dynamic Retail Portfolio | 100 | % | 100 | % | |||||||
Dynamic Semiconductors Portfolio | 100 | % | 100 | % | |||||||
Dynamic Software Portfolio | 0 | % | 0 | % |
* The above percentages are based on ordinary income dividends paid to shareholders during the Fund's fiscal year.
87
Proxy Results
A Special Meeting of Shareholders was held on March 22, 2010 to elect seven individuals to the Board of Trustees of PowerShares Exchange-Traded Fund Trust.
The results of the voting on the above matter were as follows:
Trustees | Votes For | Withheld/ Abstentions* | |||||||||
Ronn R. Bagge | 426,624,761 | 8,241,402 | |||||||||
Todd J. Barre | 426,876,044 | 7,990,119 | |||||||||
H. Bruce Bond | 426,681,223 | 8,184,940 | |||||||||
Kevin M. Carome | 425,386,415 | 9,479,748 | |||||||||
Marc M. Kole | 426,529,715 | 8,336,448 | |||||||||
Phillip M. Nussbaum | 426,531,618 | 8,334,545 | |||||||||
Donald H. Wilson | 426,691,769 | 8,174,394 |
* Includes Non-Votes.
88
Trustees and Officers
The Independent Trustees, the Trustees who are affiliated with the Adviser (the "Interested Trustees") and the executive officers of the Trust, their term of office and length of time served, their principal business occupations during at least the past five years, the number of portfolios in the Fund Complex overseen by each Trustee and the other directorships, if any, held by a Trustee, are shown below.
The Trustees and officers information is current as of April 30, 2010.
Name, Address and Age of Independent Trustees | Position(s) Held with Trust | Term of Office and Length of Time Served* | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Independent Trustees | Other Directorships Held by Independent Trustees | ||||||||||||||||||
Ronn R. Bagge (52) YQA Capital Management LLC 1755 S. Naperville Rd., Suite 100 Wheaton, IL 60187 | Trustee | Since 2003 | Founder and Principal, YQA Capital Management LLC (1998-Present); formerly Owner/CEO of Electronic Dynamic Balancing Co., Inc. (high-speed rotating equipment service provider) | 111 | None | ||||||||||||||||||
Todd J. Barre (52) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Trustee | Since 2010 | Vice President and Senior Investment Strategist (2001-2008), Director of Open Architecture and Trading (2007-2008), Head of Fundamental Research (2004-2007) and Vice President and Senior Fixed Income Strategist (1994-2001). BMO Financial Group/Harris Private Bank | 111 | None | ||||||||||||||||||
* This is the date the Trustee began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected.
** Fund Complex includes all open-end funds (including all of their portfolios) advised by the Adviser. At April 30, 2010, the Fund Complex consisted of the Trust's 62 portfolios and three other exchange-traded fund trusts with 49 portfolios advised by the Adviser.
89
Trustees and Officers (Continued)
Name, Address and Age of Independent Trustees | Position(s) Held with Trust | Term of Office and Length of Time Served* | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Independent Trustees | Other Directorships Held by Independent Trustees | ||||||||||||||||||
Marc M. Kole (49) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Trustee | Since 2006 | Chief Financial Officer, Hope Network (social services) (2008-Present); formerly Assistant Vice President and Controller, Priority Health (health insurance) (2005-2008); Senior Vice President of Finance, United Healthcare (2004-2005); Senior Vice President of Finance, Oxford Health Plans (2000-2004) | 111 | None | ||||||||||||||||||
Philip M. Nussbaum (48) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Trustee | Since 2003 | Chairman, Performance Trust Capital Partners (formerly Betzold, Berg, Nussbaum & Heitman, Inc.) (2004-Present); formerly Managing Director, Communication Institute (2002-2003); Executive Vice President of Finance, Betzold, Berg, Nussbaum & Heitman, Inc. (1994-1999) | 111 | None | ||||||||||||||||||
* This is the date the Trustee began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected.
** Fund Complex includes all open-end funds (including all of their portfolios) advised by the Adviser. At April 30, 2010, the Fund Complex consisted of the Trust's 62 portfolios and three other exchange-traded fund trusts with 49 portfolios advised by the Adviser.
90
Trustees and Officers (Continued)
Name, Address and Age of Independent Trustees | Position(s) Held with Trust | Term of Office and Length of Time Served* | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Independent Trustees | Other Directorships Held by Independent Trustees | ||||||||||||||||||
Donald H. Wilson (50) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Trustee | Since 2006 | Chairman and Chief Executive Officer, Stone Pillar Advisers, Ltd. (2010-Present); formerly, Chief Operating Officer, AMCORE Financial, Inc. (bank holding company) (2007-2009); Executive Vice President and Chief Financial Officer, AMCORE Financial, Inc. (2006-2007); Senior Vice President and Treasurer, Marshall & Ilsley Corp. (bank holding company) (1995-2006) | 111 | None | ||||||||||||||||||
* This is the date the Trustee began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected.
** Fund Complex includes all open-end funds (including all of their portfolios) advised by the Adviser. At April 30, 2010, the Fund Complex consisted of the Trust's 62 portfolios and three other exchange-traded fund trusts with 49 portfolios advised by the Adviser.
91
Trustees and Officers (Continued)
Name, Address and Age of Interested Trustees | Position(s) Held with Trust | Term of Office and Length of Time Served* | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Interested Trustees | Other Directorships Held by Interested Trustees | ||||||||||||||||||
H. Bruce Bond (46) Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Chairman of the Board and Trustee | Since 2003 | Chairman, Invesco Power-Shares Capital Management LLC (2009-Present); formerly, Managing Director, Invesco PowerShares Capital Management LLC (2002-2009); Manager, Nuveen Investments (1998-2002) | 111 | None | ||||||||||||||||||
* This is the date the Interested Trustee began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected.
** Fund Complex includes all open-end funds (including all of their portfolios) advised by the Adviser. At April 30, 2010, the Fund Complex consisted of the Trust's 62 portfolios and three other exchange-traded fund trusts with 49 portfolios advised by the Adviser.
92
Trustees and Officers (Continued)
Name, Address and Age of Interested Trustees | Position(s) Held with Trust | Term of Office and Length of Time Served* | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Interested Trustees | Other Directorships Held by Interested Trustees | ||||||||||||||||||
Kevin M. Carome (53) Invesco Ltd. Two Peachtree Pointe 1555 Peachtree St., N.E., Suite 1800 Atlanta, GA 30309 | Trustee | Since 2010 | Senior Managing Director and General Counsel, Invesco Ltd. (2006-Present); formerly, Senior Vice President and General Counsel, Invesco Advisors, Inc. (2003-2005); Senior Vice President and General Counsel, Liberty Financial Companies, Inc. (2000-2001); General Counsel of certain investment management subsidiaries of Liberty Financial Companies, Inc. (1998-2000); Associate General Counsel, Liberty Financial Companies, Inc. (1993-1998); Associate, Ropes & Gray LLP | 111 | None | ||||||||||||||||||
* This is the date the Interested Trustee began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected.
** Fund Complex includes all open-end funds (including all of their portfolios) advised by the Adviser. At April 30, 2010, the Fund Complex consisted of the Trust's 62 portfolios and three other exchange-traded fund trusts with 49 portfolios advised by the Adviser.
93
Trustees and Officers (Continued)
Name, Address and Age of Executive Officer | Position(s) Held with Trust | Length of Time Served* | Principal Occupation(s) During Past 5 Years | ||||||||||||
Andrew Schlossberg (35) Invesco Management Group, Inc. 11 Greenway Plaza Suite 100 Houston, Texas 77046 | President | Since 2009 | Managing Director, U.S. head of business strategy and chief marketing officer for Invesco Ltd. in the United States (2008-Present); formerly, Mr. Schlossberg served in multiple roles within Invesco, including head of corporate development, as well as global leadership roles in strategy and product development in the company's North American Institutional and Retirement divisions (2002-2007) | ||||||||||||
Bruce T. Duncan (55) Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Treasurer and Secretary | Treasurer since 2006; Secretary since 2008 | Senior Vice President of Finance, Invesco PowerShares Capital Management LLC (2005-Present); formerly Private Practice Attorney (2000-2005); Vice President of Investor Relations. The ServiceMaster Company (1994-2000); Vice President of Taxes, The ServiceMaster Company (1990-2000) | ||||||||||||
Benjamin Fulton (48) Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Vice President | Since 2009 | Executive Vice President – Global Product Development, Invesco PowerShares Capital Management LLC (2005-Present); formerly, principal of Clermont Consulting, a consulting firm focused on the creation and development of retail investment products (2003-2005); President and a founding partner of Claymore Securities, a financial services firm in the Chicago land area (2001-2003); Managing Director of Structured Investments at Nuveen Investments (1998-2001) | ||||||||||||
Peter Hubbard (28) Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Vice President | Since 2009 | Vice President and Director of Portfolio Management – Invesco PowerShares Capital Management LLC (2008- Present); formerly, Research Analyst, Invesco PowerShares Capital Management LLC (2005-2007); Research Analyst and Trader, Ritchie Capital, a hedge fund operator (2003-2005) | ||||||||||||
* This is the period for which the Officers began serving the Trust. Each Officer serves a one year term, until his successor is elected.
94
Trustees and Officers (Continued)
Name, Address and Age of Executive Officer | Position(s) Held with Trust | Length of Time Served* | Principal Occupation(s) During Past 5 Years | ||||||||||||
David Warren (52) Invesco Trimark Ltd. 5140 Yonge Street Suite 900 Toronto, Ontario M2N 6X7 | Vice President | Since 2009 | Director, Executive Vice President and Chief Financial Officer, Invesco Trimark Ltd. and Chief Administrative Officer, North American Retail, Invesco Ltd (2007-Present); formerly, Director, Executive Vice President and Chief Financial Officer, Invesco Trimark Ltd. (2000-2006) | ||||||||||||
Todd Spillane (51) Invesco PowerShares Capital Management LLC 11 Greenway Plaza Suite 100 Houston, Texas 77046 | Chief Compliance Officer | Since 2010 | Senior Vice President, Invesco Management Group, Inc.; Chief Compliance Officer, INVESCO Private Capital Investments, Inc. (holding company), Invesco Private Capital, Inc. (registered investment adviser) and Invesco Senior Secured Management, Inc. (registered investment adviser); Chief Compliance Officer and Senior Vice President, Invesco Advisers, Inc. (formerly Invesco Institutional, (N.A.), Inc. – registered investment adviser) and Vice President, Invesco Distributors, Inc. and Invesco Investment Services, Inc.; formerly: Chief Compliance Officer, Invesco Global Asset Management (N.A.), Inc. – registered investment adviser) and Invesco Advisers, Inc. (formerly Invesco Institutional (N.A.), Inc.) (registered investment adviser); Senior Vice President and Chief Compliance Officer, Invesco Advisors, Inc., Invesco Capital Management, Inc. and Invesco Private Asset Management, Inc.; Vice President, Invesco Capital Management, Inc. and F und Management Company | ||||||||||||
Availability of Additional Information About the Trustees
The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request at 800.337.4246.
* This is the period for which the Officers began serving the Trust. Each Officer serves a one year term, until his successor is elected.
95
Board Considerations Regarding Continuation of Investment Advisory Agreement
At a meeting held on April 15, 2010, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust (the "Trust"), including the Independent Trustees, unanimously approved the continuation of the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the "Adviser") and the Trust for the following 57 series (each, a "Fund" and collectively, the "Funds"):
PowerShares Dynamic Market Portfolio
PowerShares Dynamic OTC Portfolio
PowerShares Golden Dragon Halter USX China Portfolio
PowerShares High Yield Equity Dividend AchieversTM Portfolio
PowerShares WilderHill Clean Energy Portfolio
PowerShares Dynamic Large Cap Growth Portfolio
PowerShares Dynamic Large Cap Value Portfolio
PowerShares Dynamic Mid Cap Growth Portfolio
PowerShares Dynamic Mid Cap Value Portfolio
PowerShares Dynamic Small Cap Growth Portfolio
PowerShares Dynamic Small Cap Value Portfolio
PowerShares Dynamic Biotechnology & Genome Portfolio
PowerShares Dynamic Food & Beverage Portfolio
PowerShares Dynamic Leisure and Entertainment Portfolio
PowerShares Dynamic Media Portfolio
PowerShares Dynamic Networking Portfolio
PowerShares Dynamic Pharmaceuticals Portfolio
PowerShares Dynamic Semiconductors Portfolio
PowerShares Dynamic Software Portfolio
PowerShares Zacks Micro Cap Portfolio
PowerShares Aerospace & Defense Portfolio
PowerShares Dynamic Telecommunications & Wireless Portfolio
PowerShares Value Line Timeliness Select Portfolio
PowerShares Dividend AchieversTM Portfolio
PowerShares International Dividend AchieversTM Portfolio
PowerShares Zacks Small Cap Portfolio
PowerShares Dynamic Building and Construction Portfolio
PowerShares Dynamic Energy Exploration and Production Portfolio
PowerShares Dynamic Insurance Portfolio
PowerShares Dynamic Oil and Gas Services Portfolio
PowerShares Dynamic Retail Portfolio
PowerShares Dynamic Utilities Portfolio
PowerShares Lux Nanotech Portfolio
PowerShares FTSE RAFI US 1000 Portfolio
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio
PowerShares Water Resources Portfolio
PowerShares Dynamic Energy Sector Portfolio
PowerShares Dynamic Financial Sector Portfolio
PowerShares Dynamic Healthcare Sector Portfolio
PowerShares Dynamic Industrials Sector Portfolio
PowerShares Dynamic Large Cap Portfolio
PowerShares Dynamic MagniQuant Portfolio
PowerShares Dynamic Mid Cap Portfolio
PowerShares Dynamic Small Cap Portfolio
PowerShares Dynamic Technology Sector Portfolio
PowerShares Buyback AchieversTM Portfolio
PowerShares Cleantech Portfolio
PowerShares Dynamic Banking Portfolio
PowerShares Dynamic Basic Materials Sector Portfolio
PowerShares Dynamic Consumer Discretionary Sector Portfolio
PowerShares Dynamic Consumer Staples Sector Portfolio
PowerShares Dynamic Healthcare Services Portfolio
PowerShares Financial Preferred Portfolio
PowerShares Global Listed Private Equity Portfolio
PowerShares DWA Technical Leaders Portfolio
PowerShares Value Line Industry Rotation Portfolio
PowerShares WilderHill Progressive Energy Portfolio
96
Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)
The Trustees reviewed information from the Adviser describing: (i) the nature, extent and quality of services provided, (ii) the investment performance of the Funds and the Adviser, (iii) the costs of services provided and estimated profits realized by the Adviser, (iv) the extent to which economies of scale are realized as the Funds grow, (v) whether fee levels reflect any possible economies of scale for the benefit of Fund shareholders, (vi) comparisons of services rendered and amounts paid to other registered investment companies and (vii) any benefits realized by the Adviser from its relationship with each Fund. Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the continuation of the Investment Advisory Agreement for each Fund. No single factor was determinative in the Board's analysis.
Nature, Extent and Quality of Services. In evaluating the nature, extent and quality of the Adviser's services, the Trustees reviewed information concerning the functions performed by the Adviser for the Funds, information describing the Adviser's current organization and projected staffing, including operations assistance provided by the Adviser's parent organization, Invesco Ltd., and the background and experience of the persons responsible for the day-to-day management of the Funds. The Trustees reviewed matters related to the Adviser's execution of portfolio transactions on behalf of the Funds. The Trustees also reviewed information on the performance of the Funds and the performance of their underlying indices through December 31, 2009. The Trustees also reviewed reports on the correlation and tracking error between the underlying index and each Fund's performance, including a report of Ibbotson Associates, a consultant to the Independent Trustees, that analyzed the reasons for tracking error for certain PowerShares funds, as well as the Adviser's analysis of the tracking error between each Fund and its underlying index. The Trustees noted that each Fund's correlation was within the targeted range set forth in the Trust's registration statement and that, for each Fund other than PowerShares Global Listed Private Equity Portfolio, the tracking error was within the targeted range set forth in the Trust's registration statement. The Trustees reviewed the reasons for PowerShares Global Listed Private Equity Portfolio's tracking error. The Trustees concluded that each Fund was correlated to its underlying index and that the tracking error for each Fund was within an acceptable range given that Fund's particular circumstances.
The Trustees also considered the services provided by the Adviser in its oversight of the Funds' administrator, custodian and transfer agent. They noted the significant amount of time and effort that had been devoted to this oversight function.
Based on their review, the Trustees concluded that the nature, extent and quality of services provided by the Adviser to the Funds under the Investment Advisory Agreement were appropriate and reasonable.
Fees, Expenses and Profitability. The Trustees reviewed and discussed the information provided by the Adviser on each Fund's expense ratio and advisory fee, as compared to information compiled by the Adviser from Lipper Inc. databases on the expense ratios of comparable exchange-traded funds ("ETFs"), open-end (non-ETF) index funds and open-end actively-managed funds. The Trustees noted that the annual advisory fee charged to each Fund is:
• 0.50% of the Fund's average net assets, for each Fund other than PowerShares High Yield Equity Dividend AchieversTM Portfolio, PowerShares Dividend AchieversTM Portfolio, PowerShares International Dividend AchieversTM Portfolio, PowerShares FTSE RAFI US 1000 Portfolio and PowerShares FTSE RAFI US 1500 Small-Mid Portfolio;
97
Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)
• 0.40% of the Fund's average net assets, for each of PowerShares High Yield Equity Dividend AchieversTM Portfolio, PowerShares Dividend Achievers(TM) Portfolio and PowerShares International Dividend AchieversTM Portfolio; and
• 0.29% of the Fund's average net assets, for each of PowerShares FTSE RAFI US 1000 Portfolio and PowerShares FTSE RAFI US 1500 Small-Mid Portfolio.
The Trustees also noted that the Adviser has agreed to waive a portion of its advisory fee and/or pay expenses (an "Expense Cap") to the extent necessary to prevent the annual operating expenses of each Fund from exceeding the percentage of that Fund's average daily net assets, at least until August 31, 2011, as set forth below:
• 0.60%, excluding interest expenses, brokerage commissions and other trading expenses, taxes and extraordinary expenses, for each of PowerShares Dynamic OTC Portfolio and PowerShares Dynamic Market Portfolio;
• 0.50%, excluding interest expenses, licensing fees, offering costs, brokerage commissions and other trading expenses, taxes and extraordinary expenses, for each of PowerShares High Yield Equity Dividend AchieversTM Portfolio, PowerShares Dividend AchieversTM Portfolio and PowerShares International Dividend AchieversTM Portfolio;
• 0.39%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes and extraordinary expenses, for each of PowerShares FTSE RAFI US 1000 Portfolio and PowerShares FTSE RAFI US 1500 Small-Mid Portfolio; and
• 0.60%, excluding interest expenses, licensing fees, offering costs, brokerage commissions and other trading expenses, taxes and extraordinary expenses, for each other Fund.
The Trustees noted that the Adviser represented that it does not provide investment advisory services to any clients other than the Funds and other ETFs overseen by the Board. The Trustees noted that each Fund's advisory fee was:
• higher than the median advisory fee of its ETF peer funds (except for the advisory fee of each of PowerShares Financial Preferred Portfolio, PowerShares Golden Dragon Halter USX China Portfolio and PowerShares International Dividend AchieversTM Portfolio, which was lower than the median advisory fee of its ETF peer funds); and
• higher than the median advisory fee of its open-end index peer funds (except for the advisory fee of each of PowerShares DWA Technical Leaders Portfolio, PowerShares Dynamic Banking Portfolio, PowerShares Dynamic Financial Sector Portfolio, PowerShares Dynamic Insurance Portfolio, PowerShares Dynamic Mid Cap Growth Portfolio, PowerShares Dynamic Mid Cap Value Portfolio, PowerShares Dynamic OTC Portfolio, PowerShares Financial Preferred Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Golden Dragon Halter USX China Portfolio, PowerShares International Dividend AchieversTM Portfolio, PowerShares Value Line Industry Rotation Portfolio and PowerShares Value Line Timeliness Select Portfolio, which was equal to or lower than the median advisory fee of its open-end index peer funds, and there was no comparable data for PowerShares Dynamic Basic Materials Sector Portfolio); but
98
Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)
• lower than the median advisory fee of its open-end actively-managed peer funds.
The Trustees determined that the advisory fees were reasonable, noting the complexity of the indices, which generally require more frequent rebalancing of the portfolios, the distinguishing factors of the Funds, and the higher administrative, operational and management oversight costs for the Adviser. With respect to the Funds' expense ratios, the Trustees noted that the net expense ratio for each Fund was:
• higher than the median expense ratio of its ETF peer funds (except for the net expense ratio of each of PowerShares Dynamic OTC Portfolio, PowerShares FTSE RAFI US 1000 Portfolio and PowerShares International Dividend AchieversTM Portfolio, which was less than the median expense ratio of its ETF peer funds); and
• higher than the median expense ratio of its open-end index peer funds (except for the net expense ratio of each of PowerShares Dynamic Banking Portfolio, PowerShares Dynamic Financial Sector Portfolio, PowerShares Dynamic Insurance Portfolio, PowerShares Dynamic Mid Cap Growth Portfolio, PowerShares Dynamic Mid Cap Value Portfolio, PowerShares Dynamic Oil and Gas Services Portfolio, PowerShares Dynamic Small Cap Growth Portfolio, PowerShares Dynamic Telecommunications & Wireless Portfolio, PowerShares Dynamic Utilities Portfolio, PowerShares Financial Preferred Portfolio and PowerShares Global Listed Private Equity Portfolio, which was lower than the median expense ratio of its open-end index peer funds, and there was no comparable data for PowerShares Dynamic Basic Materials Sector Portfolio); but
• lower than the median expense ratio of its open-end actively-managed peer funds.
The Trustees noted that a significant component of the non-advisory fee expenses was the license fees paid by the Funds.
The Board concluded that the advisory fee and expense ratio of each Fund (giving effect to the Fund's Expense Cap) were reasonable and appropriate in light of the services provided.
In conjunction with their review of fees, the Trustees also considered information provided by the Adviser on the revenues received by the Adviser under the Investment Advisory Agreement for each Fund, as well as the fees waived and expenses reimbursed by the Adviser for the Funds. The Trustees reviewed information provided by the Adviser on its profitability as well as any profits or losses realized by the Adviser from its relationship to each Fund. The Trustees concluded that the estimated profitability to the Adviser of the advisory services provided to any of the Funds was not unreasonable.
Economies of Scale and Whether Fee Levels Reflect These Economies of Scale. The Trustees reviewed the information provided by the Adviser as to the extent to which economies of scale are realized as each Fund grows and whether fee levels reflect economies of scale for the benefit of shareholders. The Trustees reviewed each Fund's asset size, expense ratio and expense limitation agreed to by the Adviser. The Trustees noted that, for Funds whose expenses are higher than their respective Expense Caps, any reduction in that Fund's expenses would be enjoyed by the Adviser, but that Fund shareholders benefit from the lower expense ratio as a result of the Fund's Expense Cap. The Trustees also noted that the Excess Expense Agreement with the Trust provides that the Adviser is entitled to be reimbursed by each Fund, other than PowerShares Dynamic Market Portf olio and PowerShares Dynamic OTC Portfolio, for fees waived or expenses absorbed pursuant to the Expense Cap for a period of three years from the date the fee or expense
99
Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)
was incurred, provided that no reimbursement would be made that would result in a Fund exceeding its Expense Cap. The Trustees considered whether the advisory fee rate for each Fund was reasonable in relation to the asset size of that Fund, and concluded that the flat advisory fee was reasonable and appropriate, noting the Fund expenses the Adviser has borne as a result of the Expense Cap.
The Trustees noted that the Adviser had not identified any further benefits that it derived from its relationship with the Funds and had noted that it does not have any soft-dollar arrangements.
Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the continuation of the Investment Advisory Agreement for each Fund. No single factor was determinative in the Board's analysis.
100
PROXY VOTING POLICIES AND PROCEDURES
A description of the Funds' proxy voting policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available, without charge and upon request, by calling (800) 337-4246. This information is also available on the Securities and Exchange Commission's ("Commission") website at www.sec.gov.
Information regarding how the Funds voted proxies for portfolio securities, if applicable, during the most recent 12-month period ended June 30, is also available, without charge and upon request, by (i) calling (800) 337-4246; or (ii) accessing the Funds' Form N-PX on the Commission's website at www.sec.gov.
QUARTERLY PORTFOLIOS
The Funds file their complete schedules of portfolio holdings with the Commission for the first and third quarters of each fiscal year on Form N-Q. The Funds' Forms N-Q are available on the Commission's website at www.sec.gov. The Funds' Forms N-Q may also be reviewed and copied at the Commission's Public Reference Room in Washington, D.C.; information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330.
301 West Roosevelt Road
Wheaton, IL 60187
800.983.0903
www.invescopowershares.com
© 2009 Invesco PowerShares Capital Management LLC P-PS-AR-7
2010 Annual Report to Shareholders
April 30, 2010
PowerShares Dynamic Basic Materials Sector Portfolio
PowerShares Dynamic Consumer Discretionary Sector Portfolio
PowerShares Dynamic Consumer Staples Sector Portfolio
PowerShares Dynamic Energy Sector Portfolio
PowerShares Dynamic Financial Sector Portfolio
PowerShares Dynamic Healthcare Sector Portfolio
PowerShares Dynamic Industrials Sector Portfolio
PowerShares Dynamic Technology Sector Portfolio
PowerShares Dynamic Telecommunications & Wireless Portfolio
PowerShares Dynamic Utilities Portfolio
PowerShares NASDAQ Internet Portfolio
Table of Contents
The Market Environment | 2 | ||||||
Manager's Analysis | 4 | ||||||
Frequency Distribution of Discounts & Premiums | 26 | ||||||
Fees and Expenses | 28 | ||||||
Sector Portfolios | |||||||
Schedules of Investments | |||||||
PowerShares Dynamic Basic Materials Sector Portfolio | 30 | ||||||
PowerShares Dynamic Consumer Discretionary Sector Portfolio | 32 | ||||||
PowerShares Dynamic Consumer Staples Sector Portfolio | 34 | ||||||
PowerShares Dynamic Energy Sector Portfolio | 35 | ||||||
PowerShares Dynamic Financial Sector Portfolio | 36 | ||||||
PowerShares Dynamic Healthcare Sector Portfolio | 38 | ||||||
PowerShares Dynamic Industrials Sector Portfolio | 39 | ||||||
PowerShares Dynamic Technology Sector Portfolio | 41 | ||||||
PowerShares Dynamic Telecommunications & Wireless Portfolio | 42 | ||||||
PowerShares Dynamic Utilities Portfolio | 43 | ||||||
PowerShares NASDAQ Internet Portfolio | 44 | ||||||
Statements of Assets and Liabilities | 46 | ||||||
Statements of Operations | 48 | ||||||
Statements of Changes in Net Assets | 50 | ||||||
Financial Highlights | 54 | ||||||
Notes to Financial Statements | 60 | ||||||
Report of Independent Registered Public Accounting Firm | 72 | ||||||
Tax Information | 73 | ||||||
Proxy Results | 74 | ||||||
Trustees and Officers | 75 | ||||||
Board Considerations Regarding Continuation of Investment Advisory Agreements | 81 | ||||||
The Market Environment
For the fiscal year ended April 30, 2010 (the "reporting period"), the U.S. markets recouped more than their previous year's losses. With the government's bank support programs firmly in place, the U.S. economy rebounded from its worst recession since the 1920s and U.S. equity markets rallied accordingly during the same period with the following performance: S&P 500® Index returned 38.82%, Dow Jones Industrial Index returned 38.61% and NASDAQ-100® Index returned 44.44%. As a result of the tremendous government assistance provided to U.S. banks, insurers, and automotive companies, consumer discretionary and financial stocks surged the most out of the ten S&P 500® sectors. Despite the sharp rise in U.S. equity prices, almost $23 billion in outflows occurred during this timeframe (based on Investment Company Institute statistics) as investors re-allocated their assets to income-g enerating products.
Interest rates remained at historically low levels, which supported bond prices during the reporting period. With the exception of U.S. Treasuries, fixed income markets enjoyed unprecedented gains in both total returns and inflows over the reporting period. Despite a newfound aversion to equity risk, investors put the most money to work in the riskiest bond sectors. As a result, higher beta bond sectors performed the best during the reporting period. For example, the Bank of America Merrill Lynch (BAML) U.S. High Yield Master II Index returned 44.20%, while the BAML U.S. Corporate, Government & Mortgage Index (prev. Domestic Master) returned 7.84% during the reporting period. Municipal bonds benefited from low supply and the establishment of the Build America Bond (BAB) program. As a result, the BAML Municipal Master Index returned 9.73% and the BAML BAB Index returned 9.60%. According to ICI statistics, domestic bond funds grew at a record pace during the reporting period, experiencing $353.5 billion in taxable inflows and $68.5 billion in municipal bond inflows.
2
This page intentionally left blank
Manager's Analysis
PowerShares Dynamic Basic Materials Sector Portfolio (ticker: PYZ)
The PowerShares Dynamic Basic Materials Sector Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Dynamic Basic Materials Sector IntellidexSM Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 57.46%. Over this same year, the Index returned 58.72%, while the S&P Materials Index returned 36.12%. The Fund benefited from positive performance in chemicals, containers & packaging and metals & mining industries. The Fund suffered negative performance in construction materials. The Fund underperformed the Index due to negative trading slippage during the February rebalance.
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Chemicals-Specialty | 26.8 | ||||||
Paper & Related Products | 14.5 | ||||||
Chemicals-Diversified | 13.0 | ||||||
Containers-Paper/Plastic | 8.0 | ||||||
Containers-Metal/Glass | 6.4 | ||||||
Industrial Gases | 4.9 | ||||||
Metal-Copper | 4.5 | ||||||
Chemicals-Plastics | 3.3 | ||||||
Coatings/Paint | 2.7 | ||||||
Gold Mining | 2.5 | ||||||
Metal-Iron | 2.4 | ||||||
Metal-Aluminum | 2.2 | ||||||
Agricultural Chemicals | 1.9 | ||||||
Platinum | 1.8 | ||||||
Diversified Minerals | 1.3 | ||||||
Miscellaneous Manufacturing | 1.3 | ||||||
Water Treatment Systems | 1.3 | ||||||
Diversified Manufacturing Operations | 1.2 | ||||||
Money Market Fund | 0.1 | ||||||
Other | (0.1 | ) |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
Sigma-Aldrich Corp. | 2.7 | ||||||
Owens-Illinois, Inc. | 2.6 | ||||||
E.I. du Pont de Nemours & Co. | 2.6 | ||||||
Ecolab, Inc. | 2.5 | ||||||
International Paper Co. | 2.5 | ||||||
PPG Industries, Inc. | 2.5 | ||||||
Lubrizol Corp. (The) | 2.5 | ||||||
Newmont Mining Corp. | 2.5 | ||||||
Air Products & Chemicals, Inc. | 2.4 | ||||||
Praxair, Inc. | 2.4 | ||||||
Total | 25.2 |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Mid-Cap Value | 30.2 | ||||||
Small-Cap Value | 20.3 | ||||||
Large-Cap Value | 18.6 | ||||||
Small-Cap Growth | 14.3 | ||||||
Large-Cap Growth | 9.7 | ||||||
Mid-Cap Growth | 6.9 |
4
Manager's Analysis (Continued)
PowerShares Dynamic Basic Materials Sector Portfolio (ticker: PYZ)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2010 | ||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg Ann†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
Dynamic Basic Materials Sector IntellidexSM Index | 58.72 | % | 1.87 | % | 8.26 | % | 32.53 | % | |||||||||||
S&P Materials Index | 36.12 | % | -2.73 | % | 3.71 | % | 13.96 | % | |||||||||||
Dow Jones Basic Materials Index | 54.49 | % | -1.15 | % | 5.25 | % | 20.12 | % | |||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | -1.13 | % | -3.99 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 57.46 | % | 0.82 | % | 7.15 | % | 27.79 | % | |||||||||||
Share Price Return | 57.59 | % | 0.83 | % | 7.21 | % | 28.00 | % |
Fund Inception: October 12, 2006
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.97%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.65% while the Fund's total gross operating expense ratio was 0.91%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P Materials Index, Dow Jones Basic Materials Index, and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 29, 71, and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
5
Manager's Analysis
PowerShares Dynamic Consumer Discretionary Sector Portfolio (ticker: PEZ)
The PowerShares Dynamic Consumer Discretionary Sector Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Dynamic Consumer Discretionary Sector IntellidexSM Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 39.37%. Over this same year, the Index returned 40.31%, while the S&P Consumer Discretionary Index returned 51.84%. The Fund benefited from positive performance in specialty retail, textiles apparel & luxury goods and household durables industries. Fund performance was positive within each industry in which it was invested.
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Retail | 35.3 | ||||||
Apparel | 18.2 | ||||||
Media | 14.0 | ||||||
Home Furnishings | 6.0 | ||||||
Household Products/Wares | 5.3 | ||||||
Commercial Services | 4.2 | ||||||
Toys/Games/Hobbies | 3.8 | ||||||
Auto Parts & Equipment | 2.9 | ||||||
Chemicals | 2.7 | ||||||
Leisure Time | 1.5 | ||||||
Lodging | 1.4 | ||||||
Building Materials | 1.3 | ||||||
Home Builders | 1.2 | ||||||
Textiles | 1.1 | ||||||
Airlines | 1.1 | ||||||
Money Market Fund | 0.2 | ||||||
Other | (0.2 | ) |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
Whirlpool Corp. | 2.8 | ||||||
Sherwin-Williams Co. (The) | 2.7 | ||||||
Viacom, Inc. | 2.6 | ||||||
Walt Disney Co. (The) | 2.6 | ||||||
Urban Outfitters, Inc. | 2.5 | ||||||
Gap, Inc. (The) | 2.5 | ||||||
Coach, Inc. | 2.5 | ||||||
Starbucks Corp. | 2.5 | ||||||
Polo Ralph Lauren Corp. | 2.4 | ||||||
NIKE, Inc. | 2.4 | ||||||
Total | 25.5 |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Small-Cap Value | 29.4 | ||||||
Mid-Cap Value | 21.2 | ||||||
Mid-Cap Growth | 16.8 | ||||||
Large-Cap Growth | 14.8 | ||||||
Small-Cap Growth | 10.6 | ||||||
Large-Cap Value | 7.2 |
6
Manager's Analysis (Continued)
PowerShares Dynamic Consumer Discretionary Sector Portfolio (ticker: PEZ)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2010 | ||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg Ann†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
Dynamic Consumer Discretionary Sector IntellidexSM Index | 40.31 | % | -5.10 | % | -0.84 | % | -2.96 | % | |||||||||||
S&P Consumer Discretionary Index | 51.84 | % | -2.07 | % | 1.48 | % | 5.39 | % | |||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | -1.13 | % | -3.99 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 39.37 | % | -5.47 | % | -1.28 | % | -4.46 | % | |||||||||||
Share Price Return | 39.49 | % | -5.46 | % | -1.24 | % | -4.34 | % |
Fund Inception: October 12, 2006
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 1.68%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.65% while the Fund's total gross operating expense ratio was 1.32%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P Consumer Discretionary Index and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 81 and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
7
Manager's Analysis
PowerShares Dynamic Consumer Staples Sector Portfolio (ticker: PSL)
The PowerShares Dynamic Consumer Staples Sector Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Dynamic Consumer Staples Sector IntellidexSM Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 30.87%. Over this same year, the Index returned 31.90%, while the S&P Consumer Staples Index returned 29.77%. The Fund benefited from positive performance in food products, personal products and beverages industries. Fund performance was positive within each industry in which it was invested.
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Food | 36.2 | ||||||
Beverages | 14.7 | ||||||
Cosmetics/Personal Care | 14.3 | ||||||
Retail | 11.4 | ||||||
Household Products/Wares | 9.4 | ||||||
Agriculture | 8.3 | ||||||
Pharmaceuticals | 2.8 | ||||||
Environmental Control | 1.5 | ||||||
Electrical Components & Equipment | 1.4 | ||||||
Money Market Fund | 0.0 | ||||||
Other | (0.0 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Large-Cap Value | 27.2 | ||||||
Small-Cap Value | 23.2 | ||||||
Large-Cap Growth | 20.2 | ||||||
Mid-Cap Value | 12.7 | ||||||
Mid-Cap Growth | 9.5 | ||||||
Small-Cap Growth | 7.2 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
Sysco Corp. | 2.5 | ||||||
Avon Products, Inc. | 2.5 | ||||||
Kellogg Co. | 2.5 | ||||||
PepsiCo, Inc. | 2.4 | ||||||
H.J. Heinz Co. | 2.4 | ||||||
Colgate-Palmolive Co. | 2.4 | ||||||
Coca-Cola Co. (The) | 2.4 | ||||||
Reynolds American, Inc. | 2.4 | ||||||
Kimberly-Clark Corp. | 2.4 | ||||||
Philip Morris International, Inc. | 2.3 | ||||||
Total | 24.2 |
8
Manager's Analysis (Continued)
PowerShares Dynamic Consumer Staples Sector Portfolio (ticker: PSL)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2010 | ||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg Ann†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
Dynamic Consumer Staples Sector IntellidexSM Index | 31.90 | % | 0.49 | % | 3.96 | % | 14.76 | % | |||||||||||
S&P Consumer Staples Index | 29.77 | % | 3.12 | % | 5.18 | % | 19.85 | % | |||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | -1.13 | % | -3.99 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 30.87 | % | -0.24 | % | 3.22 | % | 11.89 | % | |||||||||||
Share Price Return | 30.99 | % | -0.27 | % | 3.21 | % | 11.86 | % |
Fund Inception: October 12, 2006
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.94%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.65% while the Fund's total gross operating expense ratio was 0.87%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P Consumer Staples Index and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 41 and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
9
Manager's Analysis
PowerShares Dynamic Energy Sector Portfolio (ticker: PXI)
The PowerShares Dynamic Energy Sector Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Dynamic Energy Sector IntellidexSM Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 50.81%. Over this same year, the Index returned 52.05%, while the S&P Energy Index returned 29.03%. The Fund benefited from positive performance in oil gas & consumable fuels, energy equipment & services and gas utilities industries. Fund performance was positive within each industry in which it was invested.
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Oil Companies-Exploration & Production | 25.9 | ||||||
Pipelines | 16.6 | ||||||
Gas-Distribution | 15.5 | ||||||
Oil Companies-Integrated | 12.8 | ||||||
Oil Field Machinery & Equipment | 10.0 | ||||||
Coal | 7.0 | ||||||
Oil-Field Services | 4.2 | ||||||
Oil & Gas Drilling | 4.0 | ||||||
Retail-Petroleum Products | 1.3 | ||||||
Transportation-Services | 1.3 | ||||||
Electric-Integrated | 1.3 | ||||||
Money Market Fund | 0.1 | ||||||
Other | (0.0 | ) |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
ConocoPhillips | 2.8 | ||||||
FMC Technologies, Inc. | 2.7 | ||||||
Murphy Oil Corp. | 2.6 | ||||||
Questar Corp. | 2.6 | ||||||
Chevron Corp. | 2.6 | ||||||
Occidental Petroleum Corp. | 2.5 | ||||||
Williams Cos., Inc. (The) | 2.5 | ||||||
Hess Corp. | 2.5 | ||||||
Spectra Energy Corp. | 2.4 | ||||||
Energy Transfer Equity LP | 2.4 | ||||||
Total | 25.6 |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Small-Cap Value | 28.7 | ||||||
Mid-Cap Value | 25.2 | ||||||
Large-Cap Value | 24.9 | ||||||
Mid-Cap Growth | 15.0 | ||||||
Large-Cap Growth | 4.5 | ||||||
Small-Cap Growth | 1.7 |
10
Manager's Analysis (Continued)
PowerShares Dynamic Energy Sector Portfolio (ticker: PXI)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2010 | ||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg Ann†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
Dynamic Energy Sector IntellidexSM Index | 52.05 | % | -1.29 | % | 5.13 | % | 19.44 | % | |||||||||||
S&P Energy Index | 29.03 | % | -0.86 | % | 4.33 | % | 16.41 | % | |||||||||||
Dow Jones Oil & Gas Index | 28.80 | % | -0.60 | % | 4.87 | % | 18.59 | % | |||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | -1.13 | % | -3.99 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 50.81 | % | -1.81 | % | 4.57 | % | 17.17 | % | |||||||||||
Share Price Return | 50.73 | % | -1.82 | % | 4.59 | % | 17.26 | % |
Fund Inception: October 12, 2006
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.98%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.65% while the Fund's total gross operating expense ratio was 0.93%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P Energy Index, Dow Jones Oil & Gas Index, and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 34, 70, and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
11
Manager's Analysis
PowerShares Dynamic Financial Sector Portfolio (ticker: PFI)
The PowerShares Dynamic Financial Sector Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Dynamic Financial Sector IntellidexSM Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 27.90%. Over this same year, the Index returned 29.54%, while the S&P Financials Index returned 51.62%. The Fund benefited from positive performance in insurance, consumer finance and capital markets industries. The Fund suffered negative performance in real estate management & development, real estate investment trusts (REITs) and thrifts & mortgage finance industries.
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Property/Casualty Insurance | 21.7 | ||||||
Investment Management/ Advisor Services | 16.0 | ||||||
Life/Health Insurance | 13.8 | ||||||
Super-Regional Banks-U.S. | 8.1 | ||||||
Multi-line Insurance | 6.1 | ||||||
Commercial Banks-Central U.S. | 5.3 | ||||||
Retail-Pawn Shops | 3.8 | ||||||
Finance-Other Services | 3.8 | ||||||
Finance-Credit Card | 2.8 | ||||||
Commercial Banks-Eastern U.S. | 2.7 | ||||||
Investment Companies | 2.7 | ||||||
S&L/Thrifts-Eastern U.S. | 2.6 | ||||||
Finance-Consumer Loans | 2.6 | ||||||
Diversified Banking Institution | 2.1 | ||||||
Commercial Services-Finance | 1.6 | ||||||
Insurance Brokers | 1.5 | ||||||
Finance-Auto Loans | 1.4 | ||||||
Reinsurance | 1.3 | ||||||
Money Market Fund | 0.3 | ||||||
Other | (0.2 | ) |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
Principal Financial Group, Inc. | 2.9 | ||||||
PNC Financial Services Group, Inc. | 2.8 | ||||||
Wells Fargo & Co. | 2.8 | ||||||
American Express Co. | 2.7 | ||||||
Progressive Corp. (The) | 2.7 | ||||||
Ameriprise Financial, Inc. | 2.6 | ||||||
Franklin Resources, Inc. | 2.6 | ||||||
T. Rowe Price Group, Inc. | 2.6 | ||||||
U.S. Bancorp | 2.5 | ||||||
IntercontinentalExchange, Inc. | 2.5 | ||||||
Total | 26.7 |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Small-Cap Value | 32.6 | ||||||
Large-Cap Value | 24.9 | ||||||
Mid-Cap Value | 14.9 | ||||||
Large-Cap Growth | 10.2 | ||||||
Small-Cap Growth | 9.2 | ||||||
Mid-Cap Growth | 8.2 |
12
Manager's Analysis (Continued)
PowerShares Dynamic Financial Sector Portfolio (ticker: PFI)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2010 | ||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg Ann†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
Dynamic Financial Sector IntellidexSM Index | 29.54 | % | -9.55 | % | -6.60 | % | -21.51 | % | |||||||||||
S&P Financials Index | 51.62 | % | -22.00 | % | -16.95 | % | -48.61 | % | |||||||||||
Dow Jones Financials Index | 47.14 | % | -21.17 | % | -16.62 | % | -47.87 | % | |||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | -1.13 | % | -3.99 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 27.90 | % | -10.37 | % | -7.40 | % | -23.89 | % | |||||||||||
Share Price Return | 28.09 | % | -10.41 | % | -7.41 | % | -23.89 | % |
Fund Inception: October 12, 2006
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 1.13%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.65% while the Fund's total gross operating expense ratio was 1.25%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P Financials Index, Dow Jones Financials Index, and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 93, 300, and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
13
Manager's Analysis
PowerShares Dynamic Healthcare Sector Portfolio (ticker: PTH)
The PowerShares Dynamic Healthcare Sector Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Dynamic Healthcare Sector IntellidexSM Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 44.09%. Over this same year, the Index returned 45.50%, while the S&P Health Care Index returned 30.34%. The Fund benefited from positive performance in health care providers & services, pharmaceuticals and life sciences tools & services industries. Fund performance was positive within each industry in which it was invested.
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Healthcare-Services | 30.7 | ||||||
Healthcare-Products | 30.5 | ||||||
Pharmaceuticals | 22.4 | ||||||
Electronics | 7.0 | ||||||
Biotechnology | 4.1 | ||||||
Commercial Services | 4.1 | ||||||
Distribution/Wholesale | 1.3 | ||||||
Money Market Fund | 0.0 | ||||||
Other | (0.1 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Mid-Cap Growth | 28.7 | ||||||
Small-Cap Growth | 20.6 | ||||||
Small-Cap Value | 17.6 | ||||||
Large-Cap Growth | 14.5 | ||||||
Large-Cap Value | 11.7 | ||||||
Mid-Cap Value | 6.9 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
Waters Corp. | 2.8 | ||||||
Thermo Fisher Scientific, Inc. | 2.6 | ||||||
AmerisourceBergen Corp. | 2.6 | ||||||
McKesson Corp. | 2.5 | ||||||
Allergan, Inc. | 2.5 | ||||||
Stryker Corp. | 2.5 | ||||||
Laboratory Corp. of America Holdings | 2.5 | ||||||
Zimmer Holdings, Inc. | 2.5 | ||||||
Bristol-Myers Squibb Co. | 2.4 | ||||||
Hospira, Inc. | 2.4 | ||||||
Total | 25.3 |
14
Manager's Analysis (Continued)
PowerShares Dynamic Healthcare Sector Portfolio (ticker: PTH)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2010 | ||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg Ann†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
Dynamic Healthcare Sector IntellidexSM Index | 45.50 | % | -2.63 | % | 1.64 | % | 5.96 | % | |||||||||||
S&P Health Care Index | 30.34 | % | -3.13 | % | -0.04 | % | -0.16 | % | |||||||||||
Dow Jones Healthcare Index | 32.62 | % | -1.54 | % | 1.28 | % | 4.66 | % | |||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | -1.13 | % | -3.99 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 44.09 | % | -3.39 | % | 0.86 | % | 3.07 | % | |||||||||||
Share Price Return | 44.28 | % | -3.42 | % | 0.85 | % | 3.03 | % |
Fund Inception: October 12, 2006
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.71%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.65% while the Fund's total gross operating expense ratio was 0.72%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P Health Care Index, Dow Jones Healthcare Index, and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performace of approximately 51, 180, and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
15
Manager's Analysis
PowerShares Dynamic Industrials Sector Portfolio (ticker: PRN)
The PowerShares Dynamic Industrials Sector Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Dynamic Industrials Sector IntellidexSM Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 35.73%. Over this same year, the Index returned 37.05%, while the S&P Industrials Index returned 52.73%. The Fund benefited from positive performance in machinery, aerospace & defense and commercial services industries. The Fund suffered negative performance in professional services and marine industries.
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Miscellaneous Manufacturing | 32.8 | ||||||
Aerospace/Defense | 8.5 | ||||||
Engineering & Construction | 8.1 | ||||||
Machinery-Diversified | 8.1 | ||||||
Commercial Services | 6.0 | ||||||
Electronics | 5.8 | ||||||
Building Materials | 5.5 | ||||||
Machinery-Construction & Mining | 3.7 | ||||||
Trucking & Leasing | 3.1 | ||||||
Household Products/Wares | 2.9 | ||||||
Transportation | 2.6 | ||||||
Electrical Components & Equipment | 2.6 | ||||||
Housewares | 1.6 | ||||||
Retail | 1.4 | ||||||
Hand/Machine Tools | 1.3 | ||||||
Distribution/Wholesale | 1.3 | ||||||
Auto Manufacturers | 1.2 | ||||||
Computers | 1.2 | ||||||
Food | 1.1 | ||||||
Auto Parts & Equipment | 1.1 | ||||||
Money Market Fund | 0.2 | ||||||
Other | (0.1 | ) |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
Cummins, Inc. | 2.8 | ||||||
McDermott International, Inc. | 2.6 | ||||||
Honeywell International, Inc. | 2.6 | ||||||
United Parcel Service, Inc. | 2.6 | ||||||
Rockwell Collins, Inc. | 2.5 | ||||||
Parker Hannifin Corp. | 2.5 | ||||||
Danaher Corp. | 2.5 | ||||||
Eaton Corp. | 2.5 | ||||||
Illinois Tool Works, Inc. | 2.5 | ||||||
Rockwell Automation, Inc. | 2.5 | ||||||
Total | 25.6 |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Small-Cap Value | 29.6 | ||||||
Mid-Cap Value | 18.1 | ||||||
Large-Cap Growth | 15.2 | ||||||
Small-Cap Growth | 13.6 | ||||||
Large-Cap Value | 12.2 | ||||||
Mid-Cap Growth | 11.3 |
16
Manager's Analysis (Continued)
PowerShares Dynamic Industrials Sector Portfolio (ticker: PRN)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2010 | ||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg Ann†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
Dynamic Industrials Sector IntellidexSM Index | 37.05 | % | -3.28 | % | 1.05 | % | 3.78 | % | |||||||||||
S&P Industrials Index | 52.73 | % | -3.26 | % | 0.43 | % | 1.54 | % | |||||||||||
Dow Jones Industrials Index | 38.61 | % | -2.84 | % | 1.09 | % | 3.98 | % | |||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | -1.13 | % | -3.99 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 35.73 | % | -4.08 | % | 0.24 | % | 0.87 | % | |||||||||||
Share Price Return | 35.89 | % | -4.10 | % | 0.24 | % | 0.87 | % |
Fund Inception: October 12, 2006
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.81%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.65% while the Fund's total gross operating expense ratio was 0.82%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P Industrials Index, Dow Jones Industrials Index, and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 56, 270, and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
17
Manager's Analysis
PowerShares Dynamic Technology Sector Portfolio (ticker: PTF)
The PowerShares Dynamic Technology Sector Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Dynamic Technology Sector IntellidexSM Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 36.50%. Over this same year, the Index returned 37.54%, while the S&P Information Technology Index returned 43.49%. The Fund benefited from positive performance in software, IT services and computers & peripherals industries. Fund performance was positive within each industry in which it was invested.
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Computers | 26.0 | ||||||
Electronics | 19.2 | ||||||
Software | 15.0 | ||||||
Semiconductors | 14.4 | ||||||
Telecommunications | 9.4 | ||||||
Commercial Services | 6.3 | ||||||
Internet | 5.6 | ||||||
Distribution/Wholesale | 2.7 | ||||||
Electrical Components & Equipment | 1.5 | ||||||
Money Market Fund | 0.0 | ||||||
Other | (0.1 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Small-Cap Growth | 24.2 | ||||||
Mid-Cap Growth | 21.5 | ||||||
Large-Cap Growth | 17.9 | ||||||
Mid-Cap Value | 17.1 | ||||||
Small-Cap Value | 12.1 | ||||||
Large-Cap Value | 7.2 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
SanDisk Corp. | 3.2 | ||||||
Apple, Inc. | 3.0 | ||||||
Intel Corp. | 2.6 | ||||||
Amphenol Corp. | 2.6 | ||||||
Cisco Systems, Inc. | 2.5 | ||||||
Corning, Inc. | 2.5 | ||||||
EMC Corp. | 2.5 | ||||||
Texas Instruments, Inc. | 2.5 | ||||||
Microsoft Corp. | 2.5 | ||||||
Western Digital Corp. | 2.4 | ||||||
Total | 26.3 |
18
Manager's Analysis (Continued)
PowerShares Dynamic Technology Sector Portfolio (ticker: PTF)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2010 | ||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg Ann†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
Dynamic Technology Sector IntellidexSM Index | 37.54 | % | -4.62 | % | -1.53 | % | -5.34 | % | |||||||||||
S&P Information Technology Index | 43.49 | % | 2.04 | % | 4.66 | % | 17.73 | % | |||||||||||
Dow Jones Technology Index | 44.93 | % | 2.71 | % | 5.24 | % | 20.09 | % | |||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | -1.13 | % | -3.99 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 36.50 | % | -5.27 | % | -2.20 | % | -7.60 | % | |||||||||||
Share Price Return | 36.44 | % | -5.30 | % | -2.21 | % | -7.64 | % |
Fund Inception: October 12, 2006
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.89%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.65% while the Fund's total gross operating expense ratio was 0.90%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P Information Technology Index, Dow Jones Technology Index, and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 70, 252, and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
19
Manager's Analysis
PowerShares Dynamic Telecommunications & Wireless Portfolio (ticker: PTE)
The PowerShares Dynamic Telecommunications & Wireless Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Dynamic Telecommunications & Wireless IntellidexSM Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 36.92%. Over this same year the Index returned 38.96% while the S&P Telecommunication Services Index returned 8.25%. The Fund benefited from positive performance in diversified telecommunication services, media and wireless telecommunication services industries. Fund performance was positive within each industry in which it was invested. The Fund underperformed the Index due to a small amount of negative trading slippage during rebalance.
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Telephone-Integrated | 25.0 | ||||||
Cable/Satellite TV | 18.0 | ||||||
Telecommunication Services | 17.3 | ||||||
Cellular Telecommunications | 5.7 | ||||||
Web Portals/ISP | 5.2 | ||||||
Networking Products | 5.0 | ||||||
Wireless Equipment | 4.7 | ||||||
Internet Connectivity Services | 4.6 | ||||||
E-Commerce/Services | 3.1 | ||||||
Transactional Software | 2.9 | ||||||
Telecommunication Equipment | 2.9 | ||||||
Internet Infrastructure Software | 2.8 | ||||||
Data Processing/Management | 2.8 | ||||||
Money Market Fund | 0.0 | ||||||
Other | (0.0 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Small-Cap Growth | 27.5 | ||||||
Small-Cap Value | 22.9 | ||||||
Large-Cap Growth | 19.9 | ||||||
Large-Cap Value | 13.7 | ||||||
Mid-Cap Value | 13.2 | ||||||
Mid-Cap Growth | 2.8 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
Comcast Corp. | 5.4 | ||||||
DISH Network Corp. | 5.0 | ||||||
Cisco Systems, Inc. | 5.0 | ||||||
DIRECTV | 4.8 | ||||||
AT&T, Inc. | 4.7 | ||||||
Motorola, Inc. | 4.7 | ||||||
Verizon Communications, Inc. | 4.5 | ||||||
CenturyTel, Inc. | 4.5 | ||||||
RCN Corp. | 3.3 | ||||||
United Online, Inc. | 3.1 | ||||||
Total | 45.0 |
20
Manager's Analysis (Continued)
PowerShares Dynamic Telecommunications & Wireless Portfolio (ticker: PTE)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2010 | ||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg Ann†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
Dynamic Telecommunications & Wireless IntellidexSM Index | 38.96 | % | -6.62 | % | 2.33 | % | 10.68 | % | |||||||||||
S&P Telecommunication Services Index | 8.25 | % | -9.17 | % | 1.50 | % | 6.80 | % | |||||||||||
S&P Information Technology Index | 43.49 | % | 2.04 | % | 3.57 | % | 16.76 | % | |||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | 0.94 | % | 4.23 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 36.92 | % | -7.37 | % | 1.44 | % | 6.51 | % | |||||||||||
Share Price Return | 37.01 | % | -7.37 | % | 1.46 | % | 6.58 | % |
Fund Inception: December 6, 2005
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 1.29%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.63% while the Fund's total gross operating expense ratio was 1.25%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P Telecommunication Services Index, S&P Information Technology Index, and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 9, 70, and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
21
Manager's Analysis
PowerShares Dynamic Utilities Portfolio (ticker: PUI)
The PowerShares Dynamic Utilities Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the Dynamic Utilities IntellidexSM Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 19.79%. Over this same year, the Index returned 20.73%, while the S&P Utilities Index returned 23.42%. The Fund benefited from positive performance in multi-utilities, electric utilities and gas utilities industries. The Fund suffered negative performance in water utilities industry.
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
Electric-Integrated | 70.4 | ||||||
Gas-Distribution | 29.6 | ||||||
Money Market Fund | 0.1 | ||||||
Other | (0.1 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Large-Cap Value | 41.4 | ||||||
Small-Cap Value | 30.4 | ||||||
Mid-Cap Value | 28.2 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
Southern Co. | 5.2 | ||||||
Entergy Corp. | 5.1 | ||||||
Edison International | 5.0 | ||||||
PG&E Corp. | 5.0 | ||||||
American Electric Power Co., Inc. | 4.8 | ||||||
Exelon Corp. | 4.8 | ||||||
Sempra Energy | 4.7 | ||||||
PPL Corp. | 4.1 | ||||||
Unisource Energy Corp. | 3.0 | ||||||
OGE Energy Corp. | 2.9 | ||||||
Total | 44.6 |
22
Manager's Analysis (Continued)
PowerShares Dynamic Utilities Portfolio (ticker: PUI)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2010 | ||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg Ann†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
Dynamic Utilities IntellidexSM Index | 20.73 | % | -6.35 | % | 3.14 | % | 14.94 | % | |||||||||||
S&P Utilities Index | 23.42 | % | -6.22 | % | 3.09 | % | 14.68 | % | |||||||||||
Dow Jones Utilities Index | 21.56 | % | -5.65 | % | 3.01 | % | 14.27 | % | |||||||||||
S&P 500® Index | 38.82 | % | -5.04 | % | 1.76 | % | 8.17 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 19.79 | % | -6.97 | % | 2.45 | % | 11.54 | % | |||||||||||
Share Price Return | 19.97 | % | -6.97 | % | 2.48 | % | 11.67 | % |
Fund Inception: October 26, 2005
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. The Adviser has waived fees and reimbursed other expenses, absent which, performance would have been lower. The Adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2011. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.82%. In the Financial Highlights section of this Shareholder Report, the Fund's total net (subsidized) operating expense ratio was determined to be 0.63% while the Fund's total gross operating expense ratio was 0.95%. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopowershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The S&P Utilities Index, Dow Jones Utilities Index, and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 35, 90, and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
23
Manager's Analysis
PowerShares NASDAQ Internet Portfolio (ticker: PNQI)
The PowerShares NASDAQ Internet Portfolio (the "Fund") seeks investment results that correspond generally to the price and yield (before the Fund's fees and expenses) of the NASDAQ Internet Index (the "Index").
For the fiscal year ended April 30, 2010, the Fund returned 56.46%. Over this same year the Index returned 57.52% while the NASDAQ-100® Index returned 44.44%. The Fund benefited from positive performance in information technology, consumer discretionary and telecommunication services sectors. Fund performance was positive within each sector in which it was invested. The Fund underperformed the Index due to negative trading slippage during the year.
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2010
E-Commerce/Services | 23.4 | ||||||
Web Portals/ISP | 23.0 | ||||||
E-Commerce/Products | 12.4 | ||||||
Internet Content-Information/Network | 12.1 | ||||||
Web Hosting/Design | 5.5 | ||||||
Internet Infrastructure Software | 5.2 | ||||||
Internet Security | 3.9 | ||||||
E-Marketing/Information | 2.5 | ||||||
Telecommunication Services | 1.9 | ||||||
Enterprise Software/Services | 1.8 | ||||||
Printing-Commercial | 1.7 | ||||||
Internet Application Software | 1.7 | ||||||
E-Services/Consulting | 1.6 | ||||||
Internet Telephony | 0.8 | ||||||
Internet Incubators | 0.6 | ||||||
Internet Connectivity Services | 0.6 | ||||||
Networking Products | 0.4 | ||||||
Retail-Pet Food & Supplies | 0.4 | ||||||
Computer Services | 0.3 | ||||||
Internet Content-Entertainment | 0.3 | ||||||
Other | (0.1 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2010
Large-Cap Growth | 46.4 | ||||||
Mid-Cap Growth | 32.0 | ||||||
Small-Cap Growth | 18.0 | ||||||
Mid-Cap Value | 1.9 | ||||||
Small-Cap Value | 1.7 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2010
Security | |||||||
Baidu, Inc. | 9.6 | ||||||
Amazon.com, Inc. | 8.3 | ||||||
Yahoo!, Inc. | 7.8 | ||||||
eBay, Inc. | 7.4 | ||||||
Google, Inc. | 7.2 | ||||||
Akamai Technologies, Inc. | 5.1 | ||||||
Priceline.com, Inc. | 4.2 | ||||||
Netflix, Inc. | 4.1 | ||||||
VeriSign, Inc. | 3.9 | ||||||
Expedia, Inc. | 3.8 | ||||||
Total | 61.4 |
24
Manager's Analysis (Continued)
PowerShares NASDAQ Internet Portfolio (ticker: PNQI)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2010 | ||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||
1 Year | Avg Ann†† | Cumulative | |||||||||||||
Index | |||||||||||||||
NASDAQ Internet IndexSM | 57.52 | % | 9.22 | % | 18.05 | % | |||||||||
NASDAQ-100® Index | 44.44 | % | -0.20 | % | -0.37 | % | |||||||||
S&P 500® Index | 38.82 | % | -6.08 | % | -11.32 | % | |||||||||
Fund | |||||||||||||||
NAV Return | 56.46 | % | 8.61 | % | 16.83 | % | |||||||||
Share Price Return | 56.65 | % | 7.75 | % | 15.09 | % |
Fund Inception: June 12, 2008
Performance quoted represents past performance. Past performance is not a guarantee of future results and current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested cost. According to the Fund's current prospectus, the expense ratio of 0.60% is expressed as a unitary fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Share Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Share Price, respectively. The returns shown in the table above do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund Shares. See invescopo wershares.com to find the most recent month-end performance numbers.
Index performance results are based upon a hypothetical investment in its constituent securities. Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the actual results investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
The NASDAQ-100® Index and S&P 500® Index (the "Benchmark Indices") are unmanaged indices used as a measurement of change in stock market conditions based on the average performance of approximately 100 and 500 common stocks, respectively.
† Fund and underlying Index returns are based on the inception date of the Fund. Returns for the Benchmark Indices are based on the closest month-end to the Fund's inception date.
†† Average annualized.
25
Frequency Distribution of Discounts & Premiums
Since Inception through April 30, 2010
Closing Price Above NAV (bps) | |||||||||||||||||||||||||||||||||||||||
Ticker | Fund Name | Inception | Trading Days | 0-24 | 25-49 | 50-99 | 100-149 | 150-199 | 200+ | ||||||||||||||||||||||||||||||
PYZ | PowerShares Dynamic Basic Materials Sector Portfolio | 10/12/06 | 893 | 353 | 20 | 3 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||
PEZ | PowerShares Dynamic Consumer Discretionary Sector Portfolio | 10/12/06 | 893 | 336 | 17 | 4 | 0 | 0 | 1 | ||||||||||||||||||||||||||||||
PSL | PowerShares Dynamic Consumer Staples Sector Portfolio | 10/12/06 | 893 | 316 | 15 | 6 | 0 | 0 | 2 | ||||||||||||||||||||||||||||||
PXI | PowerShares Dynamic Energy Sector Portfolio | 10/12/06 | 893 | 298 | 15 | 7 | 1 | 0 | 0 | ||||||||||||||||||||||||||||||
PFI | PowerShares Dynamic Financial Sector Portfolio | 10/12/06 | 893 | 332 | 23 | 8 | 1 | 1 | 1 | ||||||||||||||||||||||||||||||
PTH | PowerShares Dynamic Healthcare Sector Portfolio | 10/12/06 | 893 | 289 | 13 | 12 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||
PRN | PowerShares Dynamic Industrials Sector Portfolio | 10/12/06 | 893 | 368 | 13 | 7 | 0 | 0 | 1 | ||||||||||||||||||||||||||||||
PTF | PowerShares Dynamic Technology Sector Portfolio | 10/12/06 | 893 | 331 | 55 | 9 | 1 | 1 | 1 | ||||||||||||||||||||||||||||||
PTE | PowerShares Dynamic Telecommunications & Wireless Portfolio | 12/6/05 | 1107 | 396 | 42 | 8 | 2 | 0 | 0 | ||||||||||||||||||||||||||||||
PUI | PowerShares Dynamic Utilities Portfolio | 10/26/05 | 1135 | 408 | 26 | 5 | 1 | 1 | 1 | ||||||||||||||||||||||||||||||
PNQI | PowerShares NASDAQ Internet Portfolio | 6/12/08 | 441 | 147 | 9 | 3 | 1 | 2 | 2 |
26
Closing Price Below NAV (bps) | |||||||||||||||||||||||||||
Ticker | -0-24 | -25-49 | -50-99 | -100-149 | -150-199 | -200+ | |||||||||||||||||||||
PYZ | 504 | 11 | 2 | 0 | 0 | 0 | |||||||||||||||||||||
PEZ | 524 | 9 | 1 | 0 | 0 | 1 | |||||||||||||||||||||
PSL | 546 | 7 | 1 | 0 | 0 | 0 | |||||||||||||||||||||
PXI | 557 | 10 | 5 | 0 | 0 | 0 | |||||||||||||||||||||
PFI | 498 | 18 | 5 | 4 | 2 | 0 | |||||||||||||||||||||
PTH | 570 | 9 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
PRN | 493 | 11 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
PTF | 480 | 12 | 1 | 0 | 0 | 2 | |||||||||||||||||||||
PTE | 615 | 28 | 8 | 2 | 3 | 3 | |||||||||||||||||||||
PUI | 677 | 15 | 0 | 0 | 1 | 0 | |||||||||||||||||||||
PNQI | 271 | 4 | 1 | 0 | 0 | 1 |
27
Fees and Expenses
As a shareholder of a Fund of the PowerShares Exchange-Traded Fund Trust, you incur advisory fees and other Fund expenses. The expense examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other funds.
The example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended April 30, 2010.
Actual Expenses
The first line in the following table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading "Expenses Paid During the Six-Month Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line in the following table provides information about hypothetical account values and hypothetical expenses based on each Fund's actual expense ratio and an assumed annualized rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs such as sales charges and brokerage commissions. Therefore the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Beginning Account Value November 1, 2009 | Ending Account Value April 30, 2010 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period (1) | ||||||||||||||||
PowerShares Dynamic Basic Materials Sector Portfolio Actual | $ | 1,000.00 | $ | 1,262.30 | 0.65 | % | $ | 3.65 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.57 | 0.65 | % | $ | 3.26 | |||||||||||
PowerShares Dynamic Consumer Discretionary Sector Portfolio Actual | $ | 1,000.00 | $ | 1,310.67 | 0.65 | % | $ | 3.72 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.57 | 0.65 | % | $ | 3.26 | |||||||||||
PowerShares Dynamic Consumer Staples Sector Portfolio Actual | $ | 1,000.00 | $ | 1,130.27 | 0.65 | % | $ | 3.43 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.57 | 0.65 | % | $ | 3.26 | |||||||||||
PowerShares Dynamic Energy Sector Portfolio Actual | $ | 1,000.00 | $ | 1,197.26 | 0.65 | % | $ | 3.54 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.57 | 0.65 | % | $ | 3.26 |
28
Fees and Expenses (Continued)
Beginning Account Value November 1, 2009 | Ending Account Value April 30, 2010 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period (1) | ||||||||||||||||
PowerShares Dynamic Financial Sector Portfolio Actual | $ | 1,000.00 | $ | 1,139.46 | 0.65 | % | $ | 3.45 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.57 | 0.65 | % | $ | 3.26 | |||||||||||
PowerShares Dynamic Healthcare Sector Portfolio Actual | $ | 1,000.00 | $ | 1,232.41 | 0.65 | % | $ | 3.60 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.57 | 0.65 | % | $ | 3.26 | |||||||||||
PowerShares Dynamic Industrials Sector Portfolio Actual | $ | 1,000.00 | $ | 1,230.63 | 0.65 | % | $ | 3.59 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.57 | 0.65 | % | $ | 3.26 | |||||||||||
PowerShares Dynamic Technology Sector Portfolio Actual | $ | 1,000.00 | $ | 1,152.91 | 0.65 | % | $ | 3.47 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.57 | 0.65 | % | $ | 3.26 | |||||||||||
PowerShares Dynamic Telecommunications & Wireless Portfolio Actual | $ | 1,000.00 | $ | 1,265.79 | 0.63 | % | $ | 3.54 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.67 | 0.63 | % | $ | 3.16 | |||||||||||
PowerShares Dynamic Utilities Portfolio Actual | $ | 1,000.00 | $ | 1,097.62 | 0.63 | % | $ | 3.28 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.67 | 0.63 | % | $ | 3.16 | |||||||||||
PowerShares NASDAQ Internet Portfolio Actual | $ | 1,000.00 | $ | 1,211.69 | 0.60 | % | $ | 3.29 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.82 | 0.60 | % | $ | 3.01 |
(1) Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six months ended April 30, 2010. Expenses are calculated by multiplying the Fund's annualized expense ratio by the average account value for the period; then multiplying the result by 181 and then dividing the result by 365. Expense ratios for the most recent half-year may differ from expense ratios based on the annualized data in the Financial Highlights.
29
Schedule of Investments
PowerShares Dynamic Basic Materials Sector Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks—100.0% | |||||||||||
Agricultural Chemicals—1.9% | |||||||||||
18,047 | Mosaic Co. (The) | $ | 922,924 | ||||||||
Chemicals - Diversified—13.0% | |||||||||||
18,428 | Celanese Corp., Series A | 589,512 | |||||||||
37,222 | Dow Chemical Co. (The) | 1,147,554 | |||||||||
31,251 | E.I. du Pont de Nemours & Co. | 1,245,040 | |||||||||
24,754 | Innophos Holdings, Inc. | 705,241 | |||||||||
17,123 | PPG Industries, Inc. | 1,204,946 | |||||||||
23,959 | Rockwood Holdings, Inc.* | 717,332 | |||||||||
40,851 | Solutia, Inc.* | 718,978 | |||||||||
6,328,603 | |||||||||||
Chemicals - Plastics—3.3% | |||||||||||
72,299 | PolyOne Corp.* | 817,702 | |||||||||
56,407 | Spartech Corp.* | 803,235 | |||||||||
1,620,937 | |||||||||||
Chemicals - Specialty—26.8% | |||||||||||
15,332 | Albemarle Corp. | 700,059 | |||||||||
12,208 | Ashland, Inc. | 727,108 | |||||||||
26,233 | Balchem Corp. | 680,484 | |||||||||
19,779 | Cabot Corp. | 643,609 | |||||||||
13,471 | Cytec Industries, Inc. | 647,416 | |||||||||
9,652 | Eastman Chemical Co. | 645,912 | |||||||||
25,006 | Ecolab, Inc. | 1,221,293 | |||||||||
70,181 | Ferro Corp.* | 766,376 | |||||||||
27,383 | H.B. Fuller Co. | 642,131 | |||||||||
13,650 | International Flavors & Fragrances, Inc. | 683,728 | |||||||||
13,337 | Lubrizol Corp. (The) | 1,204,865 | |||||||||
11,771 | Minerals Technologies, Inc. | 679,187 | |||||||||
6,455 | NewMarket Corp. | 710,050 | |||||||||
21,756 | Sensient Technologies Corp. | 685,967 | |||||||||
22,096 | Sigma-Aldrich Corp. | 1,310,293 | |||||||||
19,847 | W.R. Grace & Co.* | 573,380 | |||||||||
26,020 | Zep, Inc. | 479,809 | |||||||||
13,001,667 | |||||||||||
Coatings/Paint—2.7% | |||||||||||
29,859 | RPM International, Inc. | 659,287 | |||||||||
21,008 | Valspar Corp. (The) | 657,970 | |||||||||
1,317,257 | |||||||||||
Containers - Metal/Glass—6.4% | |||||||||||
10,636 | Ball Corp. | 565,942 | |||||||||
11,217 | Greif, Inc., Class A | 663,822 | |||||||||
35,552 | Owens-Illinois, Inc.* | 1,259,963 | |||||||||
10,065 | Silgan Holdings, Inc. | 607,221 | |||||||||
�� | 3,096,948 | ||||||||||
Containers - Paper/Plastic—8.0% | |||||||||||
165,167 | Graphic Packaging Holding Co.* | 609,466 | |||||||||
24,151 | Packaging Corp. of America | 597,255 | |||||||||
13,737 | Rock-Tenn Co., Class A | 708,829 | |||||||||
28,134 | Sealed Air Corp. | 604,881 |
Number of Shares | Value | ||||||||||
Common Stocks (Continued) | |||||||||||
19,432 | Sonoco Products Co. | $ | 643,782 | ||||||||
30,869 | Temple-Inland, Inc. | 719,865 | |||||||||
3,884,078 | |||||||||||
Diversified Manufacturing Operations—1.2% | |||||||||||
20,676 | Koppers Holdings, Inc. | 582,443 | |||||||||
Diversified Minerals—1.3% | |||||||||||
22,594 | AMCOL International Corp. | 649,352 | |||||||||
Gold Mining—2.5% | |||||||||||
21,383 | Newmont Mining Corp. | 1,199,159 | |||||||||
Industrial Gases—4.9% | |||||||||||
15,366 | Air Products & Chemicals, Inc. | 1,179,801 | |||||||||
14,024 | Praxair, Inc. | 1,174,791 | |||||||||
2,354,592 | |||||||||||
Metal - Aluminum—2.2% | |||||||||||
79,230 | Alcoa, Inc. | 1,064,851 | |||||||||
Metal - Copper—4.5% | |||||||||||
14,020 | Freeport-McMoRan Copper & Gold, Inc. | 1,058,930 | |||||||||
35,891 | Southern Copper Corp. | 1,097,547 | |||||||||
2,156,477 | |||||||||||
Metal - Iron—2.4% | |||||||||||
18,684 | Cliffs Natural Resources, Inc. | 1,168,310 | |||||||||
Miscellaneous Manufacturing—1.3% | |||||||||||
14,918 | AptarGroup, Inc. | 642,071 | |||||||||
Paper & Related Products—14.5% | |||||||||||
121,006 | Boise, Inc.* | 833,731 | |||||||||
52,016 | Buckeye Technologies, Inc.* | 734,466 | |||||||||
11,910 | Clearwater Paper Corp.* | 758,429 | |||||||||
10,997 | Domtar Corp.* | 779,028 | |||||||||
45,480 | International Paper Co. | 1,216,135 | |||||||||
62,748 | KapStone Paper and Packaging Corp.* | 809,449 | |||||||||
25,055 | MeadWestvaco Corp. | 680,744 | |||||||||
42,577 | P.H. Glatfelter Co. | 625,456 | |||||||||
67,941 | Wausau Paper Corp.* | 601,278 | |||||||||
7,038,716 | |||||||||||
Platinum—1.8% | |||||||||||
50,642 | Stillwater Mining Co.* | 855,850 | |||||||||
Water Treatment Systems—1.3% | |||||||||||
24,711 | Nalco Holding Co. | 611,103 | |||||||||
Total Common Stocks (Cost $40,289,955) | 48,495,338 |
See Notes to Financial Statements.
30
Schedule of Investments (Continued)
PowerShares Dynamic Basic Materials Sector Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Money Market Fund—0.1% | |||||||||||
64,424 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $64,424) | $ | 64,424 | ||||||||
Total Investments (Cost $40,354,379)—100.1% | 48,559,762 | ||||||||||
Liabilities in excess of other assets—(0.1%) | (42,731 | ) | |||||||||
Net Assets—100.0% | $ | 48,517,031 |
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
31
Schedule of Investments
PowerShares Dynamic Consumer Discretionary Sector Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks—100.0% | |||||||||||
Airlines—1.1% | |||||||||||
32,529 | Hawaiian Holdings, Inc.* | $ | 230,956 | ||||||||
Apparel—18.2% | |||||||||||
12,734 | Coach, Inc. | 531,644 | |||||||||
9,759 | Hanesbrands, Inc.* | 277,839 | |||||||||
14,697 | Maidenform Brands, Inc.* | 335,386 | |||||||||
6,862 | NIKE, Inc., Class B | 520,894 | |||||||||
5,806 | Polo Ralph Lauren Corp. | 521,959 | |||||||||
8,236 | Skechers U.S.A., Inc., Class A* | 315,851 | |||||||||
13,688 | Timberland Co. (The), Class A* | 294,292 | |||||||||
5,995 | VF Corp. | 518,088 | |||||||||
6,063 | Warnaco Group, Inc. (The)* | 290,054 | |||||||||
9,179 | Wolverine World Wide, Inc. | 280,969 | |||||||||
3,886,976 | |||||||||||
Auto Parts & Equipment—2.9% | |||||||||||
14,429 | Cooper Tire & Rubber Co. | 306,183 | |||||||||
9,417 | TRW Automotive Holdings Corp.* | 303,322 | |||||||||
609,505 | |||||||||||
Building Materials—1.3% | |||||||||||
10,922 | Drew Industries, Inc.* | 280,149 | |||||||||
Chemicals—2.7% | |||||||||||
7,321 | Sherwin-Williams Co. (The) | 571,551 | |||||||||
Commercial Services—4.2% | |||||||||||
33,789 | Global Cash Access Holdings, Inc.* | 293,288 | |||||||||
12,622 | Hillenbrand, Inc. | 310,249 | |||||||||
31,399 | Service Corp. International | 281,963 | |||||||||
885,500 | |||||||||||
Home Builders—1.2% | |||||||||||
7,458 | Thor Industries, Inc. | 266,325 | |||||||||
Home Furnishings—6.0% | |||||||||||
32,866 | Select Comfort Corp.* | 372,043 | |||||||||
8,910 | Tempur-Pedic International, Inc.* | 300,267 | |||||||||
5,512 | Whirlpool Corp. | 600,092 | |||||||||
1,272,402 | |||||||||||
Household Products/Wares—5.3% | |||||||||||
13,270 | American Greetings Corp., Class A | 325,911 | |||||||||
10,471 | Helen of Troy Ltd.* | 282,822 | |||||||||
7,895 | Jarden Corp. | 253,588 | |||||||||
5,416 | Tupperware Brands Corp. | 276,595 | |||||||||
1,138,916 | |||||||||||
Leisure Time—1.5% | |||||||||||
5,532 | Polaris Industries, Inc. | 327,329 | |||||||||
Lodging—1.4% | |||||||||||
11,009 | Wyndham Worldwide Corp. | 295,151 |
Number of Shares | Value | ||||||||||
Common Stocks (Continued) | |||||||||||
Media—14.0% | |||||||||||
24,884 | Entercom Communications Corp., Class A* | $ | 362,311 | ||||||||
16,703 | Gannett Co., Inc. | 284,285 | |||||||||
6,028 | John Wiley & Sons, Inc., Class A | 254,804 | |||||||||
52,505 | McClatchy Co. (The), Class A* | 286,152 | |||||||||
13,567 | McGraw-Hill Cos., Inc. (The) | 457,479 | |||||||||
8,607 | Scholastic Corp. | 232,475 | |||||||||
15,649 | Viacom, Inc., Class B* | 552,879 | |||||||||
14,851 | Walt Disney Co. (The) | 547,111 | |||||||||
2,977,496 | |||||||||||
Retail—35.3% | |||||||||||
16,562 | Big 5 Sporting Goods Corp. | 280,726 | |||||||||
7,555 | Big Lots, Inc.* | 288,601 | |||||||||
6,623 | Children's Place Retail Stores, Inc. (The)* | 303,466 | |||||||||
11,197 | Collective Brands, Inc.* | 262,570 | |||||||||
5,794 | Cracker Barrel Old Country Store, Inc. | 286,050 | |||||||||
10,181 | Dress Barn, Inc. (The)* | 281,810 | |||||||||
9,397 | DSW, Inc., Class A* | 283,789 | |||||||||
21,579 | Gap, Inc. (The) | 533,649 | |||||||||
6,205 | Guess?, Inc. | 284,623 | |||||||||
6,013 | J.Crew Group, Inc.* | 279,424 | |||||||||
6,687 | Jo-Ann Stores, Inc.* | 295,030 | |||||||||
7,267 | McDonald's Corp. | 512,977 | |||||||||
12,560 | Nordstrom, Inc. | 519,105 | |||||||||
9,298 | PetSmart, Inc. | 307,485 | |||||||||
5,815 | Phillips-Van Heusen Corp. | 366,403 | |||||||||
28,307 | Retail Ventures, Inc.* | 306,282 | |||||||||
20,251 | Starbucks Corp. | 526,121 | |||||||||
30,975 | Stein Mart, Inc.* | 293,643 | |||||||||
5,702 | Tiffany & Co. | 276,433 | |||||||||
11,144 | TJX Cos., Inc. (The) | 516,413 | |||||||||
14,404 | Urban Outfitters, Inc.* | 540,294 | |||||||||
7,544,894 | |||||||||||
Textiles—1.1% | |||||||||||
4,816 | UniFirst Corp. | 235,358 | |||||||||
Toys/Games/Hobbies—3.8% | |||||||||||
21,099 | Mattel, Inc. | 486,332 | |||||||||
17,936 | RC2 Corp.* | 329,484 | |||||||||
815,816 | |||||||||||
Total Common Stocks (Cost $18,088,848) | 21,338,324 |
See Notes to Financial Statements.
32
Schedule of Investments (Continued)
PowerShares Dynamic Consumer Discretionary Sector Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Money Market Fund—0.2% | |||||||||||
40,694 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $40,694) | $ | 40,694 | ||||||||
Total Investments (Cost $18,129,542)—100.2% | 21,379,018 | ||||||||||
Liabilities in excess of other assets—(0.2%) | (34,026 | ) | |||||||||
Net Assets—100.0% | $ | 21,344,992 |
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
33
Schedule of Investments
PowerShares Dynamic Consumer Staples Sector Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks—100.0% | |||||||||||
Agriculture—8.3% | |||||||||||
30,975 | Archer-Daniels-Midland Co. | $ | 865,442 | ||||||||
6,790 | Lorillard, Inc. | 532,132 | |||||||||
18,567 | Philip Morris International, Inc. | 911,268 | |||||||||
17,223 | Reynolds American, Inc. | 920,053 | |||||||||
3,228,895 | |||||||||||
Beverages—14.7% | |||||||||||
10,482 | Boston Beer Co., Inc., Class A* | 597,579 | |||||||||
9,474 | Brown-Forman Corp., Class B | 551,197 | |||||||||
8,913 | Coca-Cola Bottling Co. Consolidated | 490,928 | |||||||||
17,248 | Coca-Cola Co. (The) | 921,906 | |||||||||
19,416 | Coca-Cola Enterprises, Inc. | 538,406 | |||||||||
32,983 | Constellation Brands, Inc., Class A* | 602,599 | |||||||||
15,622 | Dr Pepper Snapple Group, Inc. | 511,308 | |||||||||
11,926 | Hansen Natural Corp.* | 525,698 | |||||||||
14,558 | PepsiCo, Inc. | 949,473 | |||||||||
5,689,094 | |||||||||||
Cosmetics/Personal Care—14.3% | |||||||||||
17,895 | Alberto-Culver Co. | 515,376 | |||||||||
29,877 | Avon Products, Inc. | 965,923 | |||||||||
10,967 | Colgate-Palmolive Co. | 922,325 | |||||||||
27,526 | Elizabeth Arden, Inc.* | 501,249 | |||||||||
8,249 | Estee Lauder Cos., Inc. (The), Class A | 543,774 | |||||||||
36,529 | Inter Parfums, Inc. | 631,221 | |||||||||
14,369 | Procter & Gamble Co. (The) | 893,177 | |||||||||
33,092 | Revlon, Inc., Class A* | 579,772 | |||||||||
5,552,817 | |||||||||||
Electrical Components & Equipment—1.4% | |||||||||||
8,558 | Energizer Holdings, Inc.* | 522,894 | |||||||||
Environmental Control—1.5% | |||||||||||
61,541 | Darling International, Inc.* | 584,024 | |||||||||
Food—36.2% | |||||||||||
12,785 | American Italian Pasta Co., Class A* | 501,555 | |||||||||
15,470 | Cal-Maine Foods, Inc. | 516,389 | |||||||||
14,884 | Campbell Soup Co. | 533,740 | |||||||||
34,067 | Chiquita Brands International, Inc.* | 512,368 | |||||||||
20,280 | ConAgra Foods, Inc. | 496,251 | |||||||||
15,226 | Corn Products International, Inc. | 548,136 | |||||||||
42,323 | Del Monte Foods Co. | 632,306 | |||||||||
14,233 | Diamond Foods, Inc. | 607,891 | |||||||||
12,628 | General Mills, Inc. | 898,861 | |||||||||
19,813 | H.J. Heinz Co. | 928,635 | |||||||||
12,478 | Hershey Co. (The) | 586,591 | |||||||||
12,068 | Hormel Foods Corp. | 491,892 | |||||||||
17,440 | Kellogg Co. | 958,154 | |||||||||
8,620 | Lancaster Colony Corp. | 473,841 | |||||||||
16,929 | Ruddick Corp. | 598,271 | |||||||||
19,906 | Safeway, Inc. | 469,782 |
Number of Shares | Value | ||||||||||
Common Stocks (Continued) | |||||||||||
36,582 | Sara Lee Corp. | $ | 520,196 | ||||||||
393 | Seaboard Corp. | 573,784 | |||||||||
31,468 | Sysco Corp. | 992,501 | |||||||||
29,110 | Tyson Foods, Inc., Class A | 570,265 | |||||||||
16,891 | United Natural Foods, Inc.* | 518,385 | |||||||||
13,977 | Whole Foods Market, Inc.* | 545,382 | |||||||||
45,340 | Winn-Dixie Stores, Inc.* | 571,737 | |||||||||
14,046,913 | |||||||||||
Household Products/Wares—9.4% | |||||||||||
47,106 | Central Garden & Pet Co.* | 529,000 | |||||||||
7,384 | Church & Dwight Co., Inc. | 511,342 | |||||||||
8,089 | Clorox Co. (The) | 523,358 | |||||||||
14,974 | Kimberly-Clark Corp. | 917,307 | |||||||||
61,771 | Prestige Brands Holdings, Inc.* | 601,650 | |||||||||
15,839 | WD-40 Co. | 558,008 | |||||||||
3,640,665 | |||||||||||
Pharmaceuticals—2.8% | |||||||||||
10,927 | NBTY, Inc.* | 444,510 | |||||||||
17,912 | USANA Health Sciences, Inc.* | 649,310 | |||||||||
1,093,820 | |||||||||||
Retail—11.4% | |||||||||||
13,714 | BJ's Wholesale Club, Inc.* | 524,972 | |||||||||
16,310 | Casey's General Stores, Inc. | 630,055 | |||||||||
14,918 | Costco Wholesale Corp. | 881,356 | |||||||||
18,564 | Nu Skin Enterprises, Inc., Class A | 558,034 | |||||||||
25,808 | Walgreen Co. | 907,151 | |||||||||
16,819 | Wal-Mart Stores, Inc. | 902,339 | |||||||||
4,403,907 | |||||||||||
Total Common Stocks (Cost $34,706,133) | 38,763,029 | ||||||||||
Money Market Fund—0.0% | |||||||||||
25,895 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $25,895) | 25,895 | |||||||||
Total Investments (Cost $34,732,028)—100.0% | 38,788,924 | ||||||||||
Liabilities in excess of other assets—(0.0%) | (17,023 | ) | |||||||||
Net Assets—100.0% | $ | 38,771,901 |
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
34
Schedule of Investments
PowerShares Dynamic Energy Sector Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—99.9% | |||||||||||
Coal—7.0% | |||||||||||
16,697 | Alliance Holdings GP LP | $ | 537,977 | ||||||||
17,457 | CONSOL Energy, Inc. | 779,979 | |||||||||
19,123 | Peabody Energy Corp. | 893,427 | |||||||||
6,103 | Walter Energy, Inc. | 493,183 | |||||||||
2,704,566 | |||||||||||
Electric - Integrated—1.3% | |||||||||||
23,460 | MDU Resources Group, Inc. | 497,352 | |||||||||
Gas - Distribution—15.5% | |||||||||||
13,199 | AGL Resources, Inc. | 521,492 | |||||||||
10,548 | Energen Corp. | 515,481 | |||||||||
14,624 | Laclede Group, Inc. (The) | 498,386 | |||||||||
9,640 | National Fuel Gas Co. | 501,473 | |||||||||
13,167 | New Jersey Resources Corp. | 496,791 | |||||||||
11,513 | Nicor, Inc. | 500,930 | |||||||||
17,879 | Sempra Energy | 879,289 | |||||||||
20,030 | Southern Union Co. | 523,384 | |||||||||
16,778 | Southwest Gas Corp. | 521,796 | |||||||||
19,143 | UGI Corp. | 526,241 | |||||||||
14,597 | WGL Holdings, Inc. | 521,697 | |||||||||
6,006,960 | |||||||||||
Oil & Gas Drilling—4.0% | |||||||||||
14,332 | Atwood Oceanics, Inc.* | 521,828 | |||||||||
11,835 | Helmerich & Payne, Inc. | 480,738 | |||||||||
18,428 | Rowan Cos., Inc.* | 549,154 | |||||||||
1,551,720 | |||||||||||
Oil Companies - Exploration & Production—25.9% | |||||||||||
17,893 | Berry Petroleum Co., Class A | 579,196 | |||||||||
11,946 | Cabot Oil & Gas Corp. | 431,609 | |||||||||
8,024 | Cimarex Energy Co. | 546,274 | |||||||||
18,310 | CNX Gas Corp.* | 700,724 | |||||||||
9,300 | Contango Oil & Gas Co.* | 510,570 | |||||||||
12,147 | Continental Resources, Inc.* | 597,147 | |||||||||
47,618 | Energy Partners Ltd.* | 650,938 | |||||||||
52,694 | Gulfport Energy Corp.* | 658,675 | |||||||||
22,661 | Legacy Reserves LP | 541,371 | |||||||||
11,010 | Occidental Petroleum Corp. | 976,147 | |||||||||
10,280 | Pioneer Natural Resources Co. | 659,256 | |||||||||
20,936 | Questar Corp. | 1,003,881 | |||||||||
28,125 | Stone Energy Corp.* | 458,438 | |||||||||
19,605 | Vanguard Natural Resources LLC | 483,851 | |||||||||
41,770 | Venoco, Inc.* | 622,373 | |||||||||
6,407 | Whiting Petroleum Corp.* | 578,744 | |||||||||
9,999,194 | |||||||||||
Oil Companies - Integrated—12.8% | |||||||||||
12,159 | Chevron Corp. | 990,229 | |||||||||
18,315 | ConocoPhillips | 1,084,065 | |||||||||
13,525 | Exxon Mobil Corp. | 917,671 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
14,952 | Hess Corp. | $ | 950,200 | ||||||||
16,939 | Murphy Oil Corp. | 1,018,881 | |||||||||
4,961,046 | |||||||||||
Oil Field Machinery & Equipment—10.0% | |||||||||||
21,374 | Cameron International Corp.* | 843,418 | |||||||||
15,513 | Dresser-Rand Group, Inc.* | 547,299 | |||||||||
8,762 | Dril-Quip, Inc.* | 507,583 | |||||||||
15,650 | FMC Technologies, Inc.* | 1,059,348 | |||||||||
20,223 | National Oilwell Varco, Inc. | 890,419 | |||||||||
3,848,067 | |||||||||||
Oil - Field Services—4.2% | |||||||||||
7,932 | Oceaneering International, Inc.* | 519,546 | |||||||||
6,279 | SEACOR Holdings, Inc.* | 528,503 | |||||||||
47,571 | TETRA Technologies, Inc.* | 584,648 | |||||||||
1,632,697 | |||||||||||
Pipelines—16.6% | |||||||||||
36,027 | Atlas Pipeline Partners LP* | 519,870 | |||||||||
9,592 | Enbridge Energy Management LLC* | 493,317 | |||||||||
27,200 | Energy Transfer Equity LP | 930,784 | |||||||||
24,193 | Genesis Energy LP | 475,150 | |||||||||
10,816 | ONEOK, Inc. | 531,498 | |||||||||
40,326 | Spectra Energy Corp. | 941,209 | |||||||||
15,995 | Spectra Energy Partners LP | 504,322 | |||||||||
19,180 | Targa Resources Partners LP | 513,257 | |||||||||
40,813 | Williams Cos., Inc. (The) | 963,595 | |||||||||
12,345 | Williams Partners LP | 522,317 | |||||||||
6,395,319 | |||||||||||
Retail - Petroleum Products—1.3% | |||||||||||
18,150 | World Fuel Services Corp. | 516,004 | |||||||||
Transportation - Services—1.3% | |||||||||||
13,243 | Bristow Group, Inc.* | 512,637 | |||||||||
Total Common Stocks and Other Equity Interests (Cost $32,748,492) | 38,625,562 | ||||||||||
Money Market Fund—0.1% | |||||||||||
59,967 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $59,967) | 59,967 | |||||||||
Total Investments (Cost $32,808,459)—100.0% | 38,685,529 | ||||||||||
Liabilities in excess of other assets—(0.0%) | (14,581 | ) | |||||||||
Net Assets—100.0% | $ | 38,670,948 |
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
35
Schedule of Investments
PowerShares Dynamic Financial Sector Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—99.9% | |||||||||||
Commercial Banks - Central U.S.—5.3% | |||||||||||
5,460 | BancFirst Corp. | $ | 241,004 | ||||||||
5,378 | Commerce Bancshares, Inc. | 222,757 | |||||||||
4,161 | First Financial Bankshares, Inc. | 222,530 | |||||||||
10,276 | International Bancshares Corp. | 248,371 | |||||||||
934,662 | |||||||||||
Commercial Banks - Eastern U.S.—2.7% | |||||||||||
22,645 | Fulton Financial Corp. | 237,773 | |||||||||
36,008 | Trustco Bank Corp. NY | 239,453 | |||||||||
477,226 | |||||||||||
Commercial Services - Finance—1.6% | |||||||||||
12,364 | SEI Investments Co. | 277,696 | |||||||||
Diversified Banking Institution—2.1% | |||||||||||
2,554 | Goldman Sachs Group, Inc. (The) | 370,841 | |||||||||
Finance - Auto Loans—1.4% | |||||||||||
5,423 | Credit Acceptance Corp.* | 244,577 | |||||||||
Finance - Consumer Loans—2.6% | |||||||||||
13,858 | Nelnet, Inc., Class A | 276,606 | |||||||||
5,213 | World Acceptance Corp.* | 183,914 | |||||||||
460,520 | |||||||||||
Finance - Credit Card—2.8% | |||||||||||
10,458 | American Express Co. | 482,323 | |||||||||
Finance - Other Services—3.8% | |||||||||||
3,722 | IntercontinentalExchange, Inc.* | 434,097 | |||||||||
14,562 | MarketAxess Holdings, Inc. | 228,915 | |||||||||
663,012 | |||||||||||
Insurance Brokers—1.5% | |||||||||||
5,498 | Erie Indemnity Co., Class A | 254,612 | |||||||||
Investment Companies—2.7% | |||||||||||
18,683 | Apollo Investment Corp. | 227,185 | |||||||||
22,139 | Hercules Technology Growth Capital, Inc. | 239,987 | |||||||||
467,172 | |||||||||||
Investment Management/Advisor Services—16.0% | |||||||||||
9,977 | Ameriprise Financial, Inc. | 462,534 | |||||||||
15,583 | Blackstone Group LP | 217,850 | |||||||||
16,330 | Calamos Asset Management, Inc., Class A | 203,309 | |||||||||
7,216 | Eaton Vance Corp. | 254,292 | |||||||||
3,926 | Franklin Resources, Inc. | 454,003 | |||||||||
5,007 | GAMCO Investors, Inc., Class A | 230,372 | |||||||||
18,960 | National Financial Partners Corp.* | 291,794 | |||||||||
7,879 | T. Rowe Price Group, Inc. | 453,121 | |||||||||
6,626 | Waddell & Reed Financial, Inc., Class A | 245,957 | |||||||||
2,813,232 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
Life/Health Insurance—13.8% | |||||||||||
8,077 | Aflac, Inc. | $ | 411,604 | ||||||||
24,755 | American Equity Investment Life Holding Co. | 260,423 | |||||||||
43,744 | Conseco, Inc.* | 258,090 | |||||||||
10,721 | FBL Financial Group, Inc., Class A | 277,031 | |||||||||
17,207 | Principal Financial Group, Inc. | 502,788 | |||||||||
5,069 | StanCorp Financial Group, Inc. | 227,902 | |||||||||
4,685 | Torchmark Corp. | 250,835 | |||||||||
15,118 | Universal American Financial Corp.* | 232,061 | |||||||||
2,420,734 | |||||||||||
Multi-line Insurance—6.1% | |||||||||||
12,780 | Allstate Corp. (The) | 417,523 | |||||||||
8,421 | American Financial Group, Inc. | 247,830 | |||||||||
10,954 | Loews Corp. | 407,927 | |||||||||
1,073,280 | |||||||||||
Property/Casualty Insurance—21.7% | |||||||||||
12,658 | AMERISAFE, Inc.* | 216,452 | |||||||||
15,374 | AmTrust Financial Services, Inc. | 209,548 | |||||||||
7,915 | Chubb Corp. (The) | 418,466 | |||||||||
16,529 | Employers Holdings, Inc. | 272,398 | |||||||||
6,759 | First American Corp. | 233,659 | |||||||||
7,808 | HCC Insurance Holdings, Inc. | 212,299 | |||||||||
30,769 | Meadowbrook Insurance Group, Inc. | 243,075 | |||||||||
14,360 | OneBeacon Insurance Group Ltd., Class A | 232,919 | |||||||||
4,086 | ProAssurance Corp.* | 249,042 | |||||||||
23,288 | Progressive Corp. (The) | 467,856 | |||||||||
5,866 | Safety Insurance Group, Inc. | 218,743 | |||||||||
13,439 | Selective Insurance Group, Inc. | 224,566 | |||||||||
9,567 | Tower Group, Inc. | 220,615 | |||||||||
7,594 | Travelers Cos., Inc. (The) | 385,319 | |||||||||
3,804,957 | |||||||||||
Reinsurance—1.3% | |||||||||||
4,583 | Reinsurance Group of America, Inc. | 236,620 | |||||||||
Retail - Pawn Shops—3.8% | |||||||||||
5,683 | Cash America International, Inc. | 210,612 | |||||||||
11,041 | EZCORP, Inc., Class A* | 228,659 | |||||||||
10,266 | First Cash Financial Services, Inc.* | 226,468 | |||||||||
665,739 | |||||||||||
S&L/Thrifts - Eastern U.S.—2.6% | |||||||||||
17,945 | Dime Community Bancshares | 228,799 | |||||||||
16,927 | Investors Bancorp, Inc.* | 235,454 | |||||||||
464,253 | |||||||||||
Super - Regional Banks - U.S.—8.1% | |||||||||||
7,429 | PNC Financial Services Group, Inc. | 499,303 | |||||||||
16,229 | U.S. Bancorp | 434,450 | |||||||||
14,608 | Wells Fargo & Co. | 483,671 | |||||||||
1,417,424 | |||||||||||
Total Common Stocks and Other Equity Interests (Cost $15,056,404) | 17,528,880 |
See Notes to Financial Statements.
36
Schedule of Investments (Continued)
PowerShares Dynamic Financial Sector Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Money Market Fund—0.3% | |||||||||||
47,491 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $47,491) | $ | 47,491 | ||||||||
Total Investments (Cost $15,103,895)—100.2% | 17,576,371 | ||||||||||
Liabilities in excess of other assets—(0.2%) | (37,053 | ) | |||||||||
Net Assets—100.0% | $ | 17,539,318 |
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
37
Schedule of Investments
PowerShares Dynamic Healthcare Sector Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks—100.1% | |||||||||||
Biotechnology—4.1% | |||||||||||
13,231 | Bio-Rad Laboratories, Inc., Class A* | $ | 1,477,771 | ||||||||
190,962 | Exelixis, Inc.* | 1,103,760 | |||||||||
13,102 | Millipore Corp.* | 1,390,777 | |||||||||
3,972,308 | |||||||||||
Commercial Services—4.1% | |||||||||||
23,056 | Chemed Corp. | 1,268,310 | |||||||||
23,751 | Emergency Medical Services Corp., Class A* | 1,255,953 | |||||||||
61,331 | Parexel International Corp.* | 1,446,185 | |||||||||
3,970,448 | |||||||||||
Distribution/Wholesale—1.3% | |||||||||||
29,999 | MWI Veterinary Supply, Inc.* | 1,258,458 | |||||||||
Electronics—7.0% | |||||||||||
12,429 | Mettler-Toledo International, Inc.* | 1,559,591 | |||||||||
46,450 | Thermo Fisher Scientific, Inc.* | 2,567,756 | |||||||||
37,970 | Waters Corp.* | 2,733,460 | |||||||||
6,860,807 | |||||||||||
Healthcare - Products—30.5% | |||||||||||
75,993 | Angiodynamics, Inc.* | 1,215,888 | |||||||||
98,854 | Bruker Corp.* | 1,511,478 | |||||||||
63,204 | Cantel Medical Corp. | 1,261,552 | |||||||||
30,842 | Cooper Cos., Inc. (The) | 1,199,445 | |||||||||
136,698 | Dexcom, Inc.* | 1,496,843 | |||||||||
47,074 | Hill-Rom Holdings, Inc. | 1,492,717 | |||||||||
71,622 | Hologic, Inc.* | 1,279,885 | |||||||||
43,294 | Hospira, Inc.* | 2,328,784 | |||||||||
23,397 | IDEXX Laboratories, Inc.* | 1,547,478 | |||||||||
63,921 | Immucor, Inc.* | 1,368,549 | |||||||||
31,053 | Integra LifeSciences Holdings Corp.* | 1,410,738 | |||||||||
45,297 | Invacare Corp. | 1,197,200 | |||||||||
35,958 | Johnson & Johnson | 2,312,099 | |||||||||
29,481 | Kinetic Concepts, Inc.* | 1,276,527 | |||||||||
34,438 | Sirona Dental Systems, Inc.* | 1,435,720 | |||||||||
39,079 | STERIS Corp. | 1,300,549 | |||||||||
42,651 | Stryker Corp. | 2,449,873 | |||||||||
20,274 | Teleflex, Inc. | 1,243,202 | |||||||||
39,514 | Zimmer Holdings, Inc.* | 2,406,798 | |||||||||
29,735,325 | |||||||||||
Healthcare - Services—30.7% | |||||||||||
21,439 | Amedisys, Inc.* | 1,234,458 | |||||||||
59,797 | AmSurg Corp.* | 1,238,994 | |||||||||
62,401 | Bio-Reference Labs, Inc.* | 1,460,183 | |||||||||
36,064 | Community Health Systems, Inc.* | 1,473,575 | |||||||||
36,769 | DaVita, Inc.* | 2,295,489 | |||||||||
74,168 | Ensign Group, Inc. (The) | 1,287,556 | |||||||||
44,591 | Gentiva Health Services, Inc.* | 1,278,870 | |||||||||
169,513 | Health Management Associates, Inc., Class A* | 1,579,861 | |||||||||
71,417 | Healthsouth Corp.* | 1,461,192 | |||||||||
67,116 | Healthspring, Inc.* | 1,181,242 |
Number of Shares | Value | ||||||||||
Common Stocks (Continued) | |||||||||||
70,936 | Kindred Healthcare, Inc.* | $ | 1,265,498 | ||||||||
30,900 | Laboratory Corp. of America Holdings* | 2,427,813 | |||||||||
41,046 | LHC Group, Inc.* | 1,399,669 | |||||||||
30,781 | Lincare Holdings, Inc.* | 1,437,165 | |||||||||
29,476 | Magellan Health Services, Inc.* | 1,244,182 | |||||||||
23,096 | MEDNAX, Inc.* | 1,268,894 | |||||||||
70,496 | Odyssey HealthCare, Inc.* | 1,468,432 | |||||||||
234,462 | Tenet Healthcare Corp.* | 1,465,387 | |||||||||
66,906 | UnitedHealth Group, Inc. | 2,027,921 | |||||||||
39,834 | Universal Health Services, Inc., Class B | 1,478,638 | |||||||||
29,975,019 | |||||||||||
Pharmaceuticals—22.4% | |||||||||||
41,735 | Abbott Laboratories | 2,135,163 | |||||||||
38,770 | Allergan, Inc. | 2,469,261 | |||||||||
80,781 | AmerisourceBergen Corp. | 2,492,094 | |||||||||
92,411 | Bristol-Myers Squibb Co. | 2,337,074 | |||||||||
66,685 | Cardinal Health, Inc. | 2,313,303 | |||||||||
38,298 | McKesson Corp. | 2,482,093 | |||||||||
35,820 | Medco Health Solutions, Inc.* | 2,110,515 | |||||||||
54,910 | Medicis Pharmaceutical Corp., Class A | 1,393,616 | |||||||||
45,633 | Omnicare, Inc. | 1,268,141 | |||||||||
49,351 | Par Pharmaceutical Cos., Inc.* | 1,339,386 | |||||||||
24,937 | Perrigo Co. | 1,521,905 | |||||||||
21,862,551 | |||||||||||
Total Common Stocks (Cost $80,509,711) | 97,634,916 | ||||||||||
Money Market Fund—0.0% | |||||||||||
26,276 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $26,276) | 26,276 | |||||||||
Total Investments (Cost $80,535,987)—100.1% | 97,661,192 | ||||||||||
Liabilities in excess of other assets—(0.1%) | (63,428 | ) | |||||||||
Net Assets—100.0% | $ | 97,597,764 |
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
38
Schedule of Investments
PowerShares Dynamic Industrials Sector Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks—99.9% | |||||||||||
Aerospace/Defense—8.5% | |||||||||||
16,371 | Kaman Corp. | $ | 448,729 | ||||||||
7,863 | L-3 Communications Holdings, Inc. | 735,741 | |||||||||
12,772 | Rockwell Collins, Inc. | 830,180 | |||||||||
10,471 | United Technologies Corp. | 784,802 | |||||||||
2,799,452 | |||||||||||
Auto Manufacturers—1.2% | |||||||||||
10,285 | Oshkosh Corp.* | 397,207 | |||||||||
Auto Parts & Equipment—1.1% | |||||||||||
17,496 | ATC Technology Corp.* | 357,618 | |||||||||
Building Materials—5.5% | |||||||||||
27,438 | Apogee Enterprises, Inc. | 376,998 | |||||||||
10,649 | Armstrong World Industries, Inc.* | 463,764 | |||||||||
33,454 | Comfort Systems USA, Inc. | 471,032 | |||||||||
33,569 | Gibraltar Industries, Inc.* | 504,207 | |||||||||
1,816,001 | |||||||||||
Commercial Services—6.0% | |||||||||||
8,803 | Consolidated Graphics, Inc.* | 368,934 | |||||||||
21,035 | Cornell Cos., Inc.* | 578,463 | |||||||||
21,843 | Deluxe Corp. | 458,048 | |||||||||
13,052 | Dollar Thrifty Automotive Group, Inc.* | 574,157 | |||||||||
1,979,602 | |||||||||||
Computers—1.2% | |||||||||||
16,467 | Sykes Enterprises, Inc.* | 374,295 | |||||||||
Distribution/Wholesale—1.3% | |||||||||||
6,865 | United Stationers, Inc.* | 420,275 | |||||||||
Electrical Components & Equipment—2.6% | |||||||||||
17,204 | EnerSys* | 445,240 | |||||||||
8,369 | Hubbell, Inc., Class B | 388,907 | |||||||||
834,147 | |||||||||||
Electronics—5.8% | |||||||||||
13,993 | Brady Corp., Class A | 480,800 | |||||||||
13,983 | II-VI, Inc.* | 501,430 | |||||||||
10,861 | Thomas & Betts Corp.* | 455,510 | |||||||||
13,446 | Watts Water Technologies, Inc., Class A | 477,064 | |||||||||
1,914,804 | |||||||||||
Engineering & Construction—8.1% | |||||||||||
17,032 | EMCOR Group, Inc.* | 486,434 | |||||||||
14,216 | Layne Christensen Co.* | 389,234 | |||||||||
31,458 | McDermott International, Inc.* | 862,264 | |||||||||
15,553 | Stanley, Inc.* | 491,941 | |||||||||
8,432 | URS Corp.* | 432,983 | |||||||||
2,662,856 | |||||||||||
Food—1.1% | |||||||||||
12,105 | M&F Worldwide Corp.* | 371,139 |
Number of Shares | Value | ||||||||||
Common Stocks (Continued) | |||||||||||
Hand/Machine Tools—1.3% | |||||||||||
6,949 | Regal-Beloit Corp. | $ | 439,663 | ||||||||
Household Products/Wares—2.9% | |||||||||||
12,408 | Avery Dennison Corp. | 484,284 | |||||||||
25,510 | Ennis, Inc. | 471,680 | |||||||||
955,964 | |||||||||||
Housewares—1.6% | |||||||||||
8,907 | Toro Co. (The) | 507,165 | |||||||||
Machinery - Construction & Mining—3.7% | |||||||||||
6,267 | Bucyrus International, Inc. | 394,884 | |||||||||
14,150 | Joy Global, Inc. | 803,861 | |||||||||
1,198,745 | |||||||||||
Machinery - Diversified—8.1% | |||||||||||
12,660 | Cummins, Inc. | 914,432 | |||||||||
14,304 | Graco, Inc. | 496,063 | |||||||||
12,648 | IDEX Corp. | 424,973 | |||||||||
13,289 | Rockwell Automation, Inc. | 806,908 | |||||||||
2,642,376 | |||||||||||
Miscellaneous Manufacturing—32.8% | |||||||||||
8,968 | 3M Co. | 795,193 | |||||||||
8,655 | A.O. Smith Corp. | 446,858 | |||||||||
10,059 | Acuity Brands, Inc. | 454,767 | |||||||||
11,431 | Carlisle Cos., Inc. | 431,292 | |||||||||
11,972 | CLARCOR, Inc. | 452,781 | |||||||||
12,380 | Crane Co. | 444,937 | |||||||||
9,718 | Danaher Corp. | 819,033 | |||||||||
9,503 | Donaldson Co., Inc. | 439,989 | |||||||||
10,552 | Eaton Corp. | 814,192 | |||||||||
13,061 | Harsco Corp. | 404,369 | |||||||||
17,899 | Honeywell International, Inc. | 849,665 | |||||||||
15,791 | Illinois Tool Works, Inc. | 806,920 | |||||||||
14,031 | ITT Corp. | 779,703 | |||||||||
23,981 | John Bean Technologies Corp. | 440,531 | |||||||||
18,212 | Pall Corp. | 710,086 | |||||||||
11,919 | Parker Hannifin Corp. | 824,556 | |||||||||
12,042 | Pentair, Inc. | 435,439 | |||||||||
13,382 | Raven Industries, Inc. | 406,277 | |||||||||
10,756,588 | |||||||||||
Retail—1.4% | |||||||||||
8,604 | MSC Industrial Direct Co., Class A | 468,832 | |||||||||
Transportation—2.6% | |||||||||||
12,237 | United Parcel Service, Inc., Class B | 846,066 | |||||||||
Trucking & Leasing—3.1% | |||||||||||
7,478 | Amerco, Inc.* | 467,001 | |||||||||
21,508 | TAL International Group, Inc. | 558,993 | |||||||||
1,025,994 | |||||||||||
Total Common Stocks (Cost $28,006,262) | 32,768,789 |
See Notes to Financial Statements.
39
Schedule of Investments (Continued)
PowerShares Dynamic Industrials Sector Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Money Market Fund—0.2% | |||||||||||
58,258 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $58,258) | $ | 58,258 | ||||||||
Total Investments (Cost $28,064,520)—100.1% | 32,827,047 | ||||||||||
Liabilities in excess of other assets—(0.1%) | (47,996 | ) | |||||||||
Net Assets—100.0% | $ | 32,779,051 |
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
40
Schedule of Investments
PowerShares Dynamic Technology Sector Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks—100.1% | |||||||||||
Commercial Services—6.3% | |||||||||||
27,161 | Euronet Worldwide, Inc.* | $ | 432,675 | ||||||||
12,955 | Hewitt Associates, Inc., Class A* | 531,025 | |||||||||
12,890 | Lender Processing Services, Inc. | 486,598 | |||||||||
8,547 | MAXIMUS, Inc. | 529,145 | |||||||||
28,139 | TeleTech Holdings, Inc.* | 465,700 | |||||||||
2,445,143 | |||||||||||
Computers—26.0% | |||||||||||
4,409 | Apple, Inc.* | 1,151,278 | |||||||||
17,422 | Computer Sciences Corp.* | 912,739 | |||||||||
51,588 | EMC Corp.* | 980,688 | |||||||||
17,765 | Hewlett-Packard Co. | 923,247 | |||||||||
7,096 | International Business Machines Corp. | 915,384 | |||||||||
21,796 | Jack Henry & Associates, Inc. | 556,234 | |||||||||
14,599 | Lexmark International, Inc., Class A* | 540,893 | |||||||||
16,383 | MICROS Systems, Inc.* | 608,792 | |||||||||
30,974 | SanDisk Corp.* | 1,235,553 | |||||||||
32,788 | Super Micro Computer, Inc.* | 464,934 | |||||||||
29,592 | Teradata Corp.* | 860,239 | |||||||||
23,357 | Western Digital Corp.* | 959,739 | |||||||||
10,109,720 | |||||||||||
Distribution/Wholesale—2.7% | |||||||||||
69,025 | Brightpoint, Inc.* | 558,412 | |||||||||
27,805 | Ingram Micro, Inc., Class A* | 504,939 | |||||||||
1,063,351 | |||||||||||
Electrical Components & Equipment—1.5% | |||||||||||
13,828 | Littelfuse, Inc.* | 583,956 | |||||||||
Electronics—19.2% | |||||||||||
21,663 | Amphenol Corp., Class A | 1,001,047 | |||||||||
17,446 | Arrow Electronics, Inc.* | 532,103 | |||||||||
17,825 | Avnet, Inc.* | 569,865 | |||||||||
40,012 | AVX Corp. | 618,185 | |||||||||
24,856 | Benchmark Electronics, Inc.* | 537,884 | |||||||||
15,714 | Cymer, Inc.* | 536,633 | |||||||||
32,442 | Jabil Circuit, Inc. | 497,011 | |||||||||
22,576 | Multi-Fineline Electronix, Inc.* | 585,170 | |||||||||
15,565 | National Instruments Corp. | 538,238 | |||||||||
18,107 | Park Electrochemical Corp. | 547,013 | |||||||||
29,755 | Sanmina-SCI Corp.* | 530,532 | |||||||||
11,488 | Tech Data Corp.* | 492,835 | |||||||||
48,015 | Vishay Intertechnology, Inc.* | 499,836 | |||||||||
7,486,352 | |||||||||||
Internet—5.6% | |||||||||||
8,820 | F5 Networks, Inc.* | 603,553 | |||||||||
49,712 | ModusLink Global Solutions, Inc.* | 443,928 | |||||||||
53,670 | TIBCO Software, Inc.* | 611,838 | |||||||||
19,749 | VeriSign, Inc.* | 538,555 | |||||||||
2,197,874 |
Number of Shares | Value | ||||||||||
Common Stocks (Continued) | |||||||||||
Semiconductors—14.4% | |||||||||||
36,933 | Altera Corp. | $ | 936,621 | ||||||||
47,689 | Fairchild Semiconductor International, Inc.* | 535,071 | |||||||||
43,949 | Intel Corp. | 1,003,356 | |||||||||
74,795 | Kulicke & Soffa Industries, Inc.* | 613,319 | |||||||||
91,308 | LSI Corp.* | 549,674 | |||||||||
61,828 | ON Semiconductor Corp.* | 490,914 | |||||||||
27,041 | QLogic Corp.* | 523,784 | |||||||||
37,009 | Texas Instruments, Inc. | 962,604 | |||||||||
5,615,343 | |||||||||||
Software—15.0% | |||||||||||
29,190 | Acxiom Corp.* | 556,945 | |||||||||
21,140 | Blackbaud, Inc. | 487,277 | |||||||||
40,101 | CA, Inc. | 914,704 | |||||||||
24,461 | CSG Systems International, Inc.* | 555,754 | |||||||||
9,967 | ManTech International Corp., Class A* | 448,814 | |||||||||
31,482 | Microsoft Corp. | 961,460 | |||||||||
5,549 | MicroStrategy, Inc., Class A* | 425,054 | |||||||||
28,268 | Parametric Technology Corp.* | 525,502 | |||||||||
17,184 | SYNNEX Corp.* | 471,185 | |||||||||
25,500 | VeriFone Holdings, Inc.* | 485,265 | |||||||||
5,831,960 | |||||||||||
Telecommunications—9.4% | |||||||||||
37,085 | Cisco Systems, Inc.* | 998,328 | |||||||||
51,178 | Corning, Inc. | 985,177 | |||||||||
24,436 | EchoStar Corp., Class A* | 469,416 | |||||||||
19,187 | InterDigital, Inc.* | 530,904 | |||||||||
116,900 | RF Micro Devices, Inc.* | 656,978 | |||||||||
3,640,803 | |||||||||||
Total Common Stocks (Cost $34,255,406) | 38,974,502 | ||||||||||
Money Market Fund—0.0% | |||||||||||
21,405 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $21,405) | 21,405 | |||||||||
Total Investments (Cost $34,276,811)—100.1% | 38,995,907 | ||||||||||
Liabilities in excess of other assets—(0.1%) | (53,940 | ) | |||||||||
Net Assets—100.0% | $ | 38,941,967 |
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
41
Schedule of Investments
PowerShares Dynamic Telecommunications & Wireless Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks—100.0% | |||||||||||
Cable/Satellite TV—18.0% | |||||||||||
18,197 | Cablevision Systems Corp., Class A | $ | 499,326 | ||||||||
48,864 | Comcast Corp., Class A | 964,575 | |||||||||
23,731 | DIRECTV, Class A* | 859,774 | |||||||||
40,226 | DISH Network Corp., Class A | 891,006 | |||||||||
3,214,681 | |||||||||||
Cellular Telecommunications—5.7% | |||||||||||
11,710 | NII Holdings, Inc.* | 496,738 | |||||||||
26,051 | Syniverse Holdings, Inc.* | 523,104 | |||||||||
1,019,842 | |||||||||||
Data Processing/Management—2.8% | |||||||||||
21,778 | CSG Systems International, Inc.* | 494,796 | |||||||||
E-Commerce/Services—3.1% | |||||||||||
69,996 | United Online, Inc. | 557,868 | |||||||||
Internet Connectivity Services—4.6% | |||||||||||
7,170 | AboveNet, Inc.* | 362,372 | |||||||||
44,529 | Cogent Communications Group, Inc.* | 454,641 | |||||||||
817,013 | |||||||||||
Internet Infrastructure Software—2.8% | |||||||||||
17,944 | AsiaInfo Holdings, Inc.* | 509,789 | |||||||||
Networking Products—5.0% | |||||||||||
33,018 | Cisco Systems, Inc.* | 888,845 | |||||||||
Telecommunication Equipment—2.9% | |||||||||||
15,413 | Plantronics, Inc. | 511,712 | |||||||||
Telecommunication Services—17.3% | |||||||||||
26,019 | Consolidated Communications Holdings, Inc. | 482,652 | |||||||||
38,268 | Knology, Inc.* | 502,459 | |||||||||
18,904 | NeuStar, Inc., Class A* | 462,581 | |||||||||
25,655 | NTELOS Holdings Corp. | 503,608 | |||||||||
110,650 | PAETEC Holding Corp.* | 551,037 | |||||||||
39,906 | RCN Corp.* | 585,820 | |||||||||
3,088,157 | |||||||||||
Telephone - Integrated—25.0% | |||||||||||
32,379 | AT&T, Inc. | 843,797 | |||||||||
9,986 | Atlantic Tele-Network, Inc. | 551,027 | |||||||||
23,440 | CenturyTel, Inc. | 799,538 | |||||||||
148,032 | Cincinnati Bell, Inc.* | 498,868 | |||||||||
14,039 | Telephone & Data Systems, Inc. | 486,592 | |||||||||
27,768 | Verizon Communications, Inc. | 802,218 | |||||||||
43,255 | Windstream Corp. | 477,968 | |||||||||
4,460,008 | |||||||||||
Transactional Software—2.9% | |||||||||||
25,168 | Synchronoss Technologies, Inc.* | 514,182 |
Number of Shares | Value | ||||||||||
Common Stocks (Continued) | |||||||||||
Web Portals/ISP—5.2% | |||||||||||
52,539 | EarthLink, Inc. | $ | 473,902 | ||||||||
43,469 | InfoSpace, Inc.* | 455,120 | |||||||||
929,022 | |||||||||||
Wireless Equipment—4.7% | |||||||||||
118,834 | Motorola, Inc.* | 840,156 | |||||||||
Total Common Stocks (Cost $15,647,822) | 17,846,071 | ||||||||||
Money Market Fund—0.0% | |||||||||||
5,097 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $5,097) | 5,097 | |||||||||
Total Investments (Cost $15,652,919)—100.0% | 17,851,168 | ||||||||||
Liabilities in excess of other assets—(0.0%) | (3,222 | ) | |||||||||
Net Assets—100.0% | $ | 17,847,946 |
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
42
Schedule of Investments
PowerShares Dynamic Utilities Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks—100.0% | |||||||||||
Electric - Integrated—70.4% | |||||||||||
31,197 | Alliant Energy Corp. | $ | 1,066,937 | ||||||||
53,810 | American Electric Power Co., Inc. | 1,845,683 | |||||||||
48,466 | Avista Corp. | 1,048,320 | |||||||||
28,137 | Constellation Energy Group, Inc. | 994,643 | |||||||||
37,181 | DPL, Inc. | 1,047,761 | |||||||||
22,726 | DTE Energy Co. | 1,094,711 | |||||||||
55,442 | Edison International | 1,905,542 | |||||||||
49,044 | El Paso Electric Co.* | 1,042,185 | |||||||||
23,813 | Entergy Corp. | 1,935,759 | |||||||||
41,780 | Exelon Corp. | 1,821,190 | |||||||||
29,875 | IDACORP, Inc. | 1,077,890 | |||||||||
88,818 | NV Energy, Inc. | 1,109,337 | |||||||||
26,990 | OGE Energy Corp. | 1,116,846 | |||||||||
43,156 | PG&E Corp. | 1,890,233 | |||||||||
63,521 | PPL Corp. | 1,572,780 | |||||||||
56,943 | Southern Co. | 1,967,950 | |||||||||
35,909 | UIL Holdings Corp. | 1,042,438 | |||||||||
33,863 | Unisource Energy Corp. | 1,128,315 | |||||||||
46,111 | Westar Energy, Inc. | 1,092,370 | |||||||||
47,418 | Xcel Energy, Inc. | 1,031,341 | |||||||||
26,832,231 | |||||||||||
Gas - Distribution—29.6% | |||||||||||
27,161 | AGL Resources, Inc. | 1,073,131 | |||||||||
30,094 | Laclede Group, Inc. (The) | 1,025,603 | |||||||||
27,094 | New Jersey Resources Corp. | 1,022,257 | |||||||||
23,692 | Nicor, Inc. | 1,030,839 | |||||||||
65,697 | NiSource, Inc. | 1,070,861 | |||||||||
38,203 | Piedmont Natural Gas Co., Inc. | 1,050,582 | |||||||||
36,792 | Sempra Energy | 1,809,431 | |||||||||
41,218 | Southern Union Co. | 1,077,026 | |||||||||
34,527 | Southwest Gas Corp. | 1,073,790 | |||||||||
30,039 | WGL Holdings, Inc. | 1,073,594 | |||||||||
11,307,114 | |||||||||||
Total Common Stocks (Cost $36,604,480) | 38,139,345 | ||||||||||
Money Market Fund—0.1% | |||||||||||
47,548 | Goldman Sachs Financial Square Prime Obligations Institutional Share Class (Cost $47,548) | 47,548 | |||||||||
Total Investments (Cost $36,652,028)—100.1% | 38,186,893 | ||||||||||
Liabilities in excess of other assets—(0.1%) | (48,117 | ) | |||||||||
Net Assets—100.0% | $ | 38,138,776 |
Notes to Schedule of Investments:
* Non-income producing security.
See Notes to Financial Statements.
43
Schedule of Investments
PowerShares NASDAQ Internet Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.1% | |||||||||||
Computer Services—0.3% | |||||||||||
5,797 | LivePerson, Inc.* | $ | 47,883 | ||||||||
E-Commerce/Products—12.4% | |||||||||||
9,367 | Amazon.com, Inc.* | 1,283,841 | |||||||||
1,731 | Blue Nile, Inc.* | 93,457 | |||||||||
12,614 | drugstore.com, Inc.* | 46,167 | |||||||||
5,261 | MercadoLibre, Inc. (Argentina)* | 265,260 | |||||||||
3,698 | NutriSystem, Inc. | 71,482 | |||||||||
2,729 | Overstock.com, Inc.* | 50,487 | |||||||||
3,096 | Shutterfly, Inc.* | 72,849 | |||||||||
3,285 | Vitacost.Com, Inc.* | 28,612 | |||||||||
1,912,155 | |||||||||||
E-Commerce/Services—23.4% | |||||||||||
48,176 | eBay, Inc.* | 1,147,071 | |||||||||
24,930 | Expedia, Inc. | 588,597 | |||||||||
12,372 | IAC/InterActiveCorp.* | 277,380 | |||||||||
5,035 | Internet Brands, Inc., Class A* | 52,112 | |||||||||
6,383 | Netflix, Inc.* | 630,449 | |||||||||
2,673 | OpenTable, Inc.* | 103,873 | |||||||||
12,044 | Orbitz Worldwide, Inc.* | 79,370 | |||||||||
2,445 | Priceline.com, Inc.* | 640,712 | |||||||||
10,152 | United Online, Inc. | 80,912 | |||||||||
3,600,476 | |||||||||||
E-Marketing/Information—2.5% | |||||||||||
3,619 | comScore, Inc.* | 65,685 | |||||||||
3,389 | Constant Contact, Inc.* | 86,589 | |||||||||
4,619 | Digital River, Inc.* | 129,055 | |||||||||
9,981 | ValueClick, Inc.* | 102,604 | |||||||||
383,933 | |||||||||||
Enterprise Software/Services—1.8% | |||||||||||
6,733 | Open Text Corp. (Canada)* | 283,796 | |||||||||
E-Services/Consulting—1.6% | |||||||||||
7,194 | GSI Commerce, Inc.* | 196,037 | |||||||||
3,664 | Perficient, Inc.* | 45,690 | |||||||||
241,727 | |||||||||||
Internet Application Software—1.7% | |||||||||||
18,665 | Art Technology Group, Inc.* | 79,886 | |||||||||
4,788 | DealerTrack Holdings, Inc.* | 73,017 | |||||||||
16,111 | RealNetworks, Inc.* | 66,861 | |||||||||
2,314 | Vocus, Inc.* | 39,454 | |||||||||
259,218 | |||||||||||
Internet Connectivity Services—0.6% | |||||||||||
5,360 | Cogent Communications Group, Inc.* | 54,725 | |||||||||
6,065 | Internap Network Services Corp.* | 35,056 | |||||||||
89,781 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
Internet Content - Entertainment—0.3% | |||||||||||
10,158 | Limelight Networks, Inc.* | $ | 40,835 | ||||||||
Internet Content - Information/Network—12.1% | |||||||||||
2,138 | Baidu, Inc. ADR (China)* | 1,473,723 | |||||||||
4,030 | Knot, Inc. (The)* | 32,683 | |||||||||
4,130 | LoopNet, Inc.* | 46,587 | |||||||||
6,223 | WebMD Health Corp.* | 301,442 | |||||||||
1,854,435 | |||||||||||
Internet Incubators—0.6% | |||||||||||
4,389 | Internet Capital Group, Inc.* | 43,407 | |||||||||
5,368 | ModusLink Global Solutions, Inc.* | 47,936 | |||||||||
91,343 | |||||||||||
Internet Infrastructure Software—5.2% | |||||||||||
20,414 | Akamai Technologies, Inc.* | 792,676 | |||||||||
Internet Security—3.9% | |||||||||||
21,875 | VeriSign, Inc.* | 596,531 | |||||||||
Internet Telephony—0.8% | |||||||||||
5,398 | j2 Global Communications, Inc.* | 129,984 | |||||||||
Networking Products—0.4% | |||||||||||
2,695 | LogMeIn, Inc.* | 63,036 | |||||||||
Printing - Commercial—1.7% | |||||||||||
5,178 | VistaPrint NV (Netherlands)* | 267,081 | |||||||||
Retail - Pet Food & Supplies—0.4% | |||||||||||
2,731 | PetMed Express, Inc. | 60,464 | |||||||||
Telecommunication Services—1.9% | |||||||||||
23,614 | Clearwire Corp., Class A* | 182,300 | |||||||||
6,498 | SAVVIS, Inc.* | 114,365 | |||||||||
296,665 | |||||||||||
Web Hosting/Design—5.5% | |||||||||||
4,695 | Equinix, Inc.* | 472,552 | |||||||||
7,556 | NIC, Inc. | 53,270 | |||||||||
14,767 | Rackspace Hosting, Inc.* | 265,068 | |||||||||
7,768 | Terremark Worldwide, Inc.* | 55,696 | |||||||||
846,586 | |||||||||||
Web Portals/ISP—23.0% | |||||||||||
12,616 | AOL, Inc.* | 294,710 | |||||||||
12,819 | EarthLink, Inc. | 115,627 | |||||||||
2,105 | Google, Inc., Class A* | 1,106,051 | |||||||||
4,253 | InfoSpace, Inc.* | 44,529 | |||||||||
8,738 | NetEase.com, Inc. ADR (China)* | 304,694 | |||||||||
7,218 | SINA Corp. (China)* | 264,901 |
See Notes to Financial Statements.
44
Schedule of Investments (Continued)
PowerShares NASDAQ Internet Portfolio
April 30, 2010
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
4,513 | Sohu.com, Inc.* | $ | 217,301 | ||||||||
72,426 | Yahoo!, Inc.* | 1,197,202 | |||||||||
3,545,015 | |||||||||||
Total Investments (Cost $12,950,311)—100.1% | 15,403,620 | ||||||||||
Liabilities in excess of other assets—(0.1%) | (7,864 | ) | |||||||||
Net Assets—100.0% | $ | 15,395,756 |
Investment Abbreviations:
ADR—American Depositary Receipt
Notes to Schedule of Investments:
* Non-income producing security.
This Fund has holdings greater than 10% of net assets in the following country:
China | 13.3 | % |
See Notes to Financial Statements.
45
Statements of Assets and Liabilities
April 30, 2010
PowerShares Dynamic Basic Materials Sector Portfolio | PowerShares Dynamic Consumer Discretionary Sector Portfolio | PowerShares Dynamic Consumer Staples Sector Portfolio | PowerShares Dynamic Energy Sector Portfolio | PowerShares Dynamic Financial Sector Portfolio | PowerShares Dynamic Healthcare Sector Portfolio | ||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Investments, at value | $ | 48,559,762 | $ | 21,379,018 | $ | 38,788,924 | $ | 38,685,529 | $ | 17,576,371 | $ | 97,661,192 | |||||||||||||||
Receivables: | |||||||||||||||||||||||||||
Dividends | 21,919 | 5,783 | 45,362 | 15,209 | 6,812 | 48,569 | |||||||||||||||||||||
Expense waivers | 5,787 | 8,084 | 7,395 | 6,832 | 8,420 | 4,366 | |||||||||||||||||||||
Investments sold | — | — | — | 27,376 | — | — | |||||||||||||||||||||
Other assets | 3,002 | 3,002 | 3,000 | 3,000 | 3,000 | 3,000 | |||||||||||||||||||||
Total Assets | 48,590,470 | 21,395,887 | 38,844,681 | 38,737,946 | 17,594,603 | 97,717,127 | |||||||||||||||||||||
LIABILITES: | |||||||||||||||||||||||||||
Due to custodian | 6,064 | 6,064 | 6,064 | 6,063 | 6,063 | 6,178 | |||||||||||||||||||||
Payables: | |||||||||||||||||||||||||||
Investments purchased | — | — | — | — | — | — | |||||||||||||||||||||
Accrued advisory fees | 20,166 | 8,180 | 16,008 | 15,393 | 7,318 | 40,544 | |||||||||||||||||||||
Accrued expenses | 47,209 | 36,651 | 50,708 | 45,542 | 41,904 | 72,641 | |||||||||||||||||||||
Total Liabilities | 73,439 | 50,895 | 72,780 | 66,998 | 55,285 | 119,363 | |||||||||||||||||||||
NET ASSETS | $ | 48,517,031 | $ | 21,344,992 | $ | 38,771,901 | $ | 38,670,948 | $ | 17,539,318 | $ | 97,597,764 | |||||||||||||||
NET ASSETS CONSIST OF: | |||||||||||||||||||||||||||
Shares of beneficial interest | $ | 49,790,593 | $ | 21,816,087 | $ | 41,839,605 | $ | 41,102,613 | $ | 23,013,976 | �� | $ | 119,647,156 | ||||||||||||||
Undistributed net investment income (loss) | 58,140 | 1,779 | 83,236 | 7,289 | 46,098 | (4,622 | ) | ||||||||||||||||||||
Accumulated net realized gain (loss) on investments | (9,537,085 | ) | (3,722,350 | ) | (7,207,836 | ) | (8,316,024 | ) | (7,993,232 | ) | (39,169,975 | ) | |||||||||||||||
Net unrealized appreciation on investments | 8,205,383 | 3,249,476 | 4,056,896 | 5,877,070 | 2,472,476 | 17,125,205 | |||||||||||||||||||||
Net Assets | $ | 48,517,031 | $ | 21,344,992 | $ | 38,771,901 | $ | 38,670,948 | $ | 17,539,318 | $ | 97,597,764 | |||||||||||||||
Shares outstanding (unlimited amount authorized, $0.01 par value) | 1,550,000 | 900,000 | 1,450,000 | 1,300,000 | 950,000 | 3,800,000 | |||||||||||||||||||||
Net asset value | $ | 31.30 | $ | 23.72 | $ | 26.74 | $ | 29.75 | $ | 18.46 | $ | 25.68 | |||||||||||||||
Share price | $ | 31.34 | $ | 24.12 | $ | 26.74 | $ | 29.75 | $ | 18.45 | $ | 25.67 | |||||||||||||||
Investments, at cost | $ | 40,354,379 | $ | 18,129,542 | $ | 34,732,028 | $ | 32,808,459 | $ | 15,103,895 | $ | 80,535,987 |
See Notes to Financial Statements.
46
PowerShares Dynamic Industrials Sector Portfolio | PowerShares Dynamic Technology Sector Portfolio | PowerShares Dynamic Telecommunications & Wireless Portfolio | PowerShares Dynamic Utilities Portfolio | PowerShares NASDAQ Internet Portfolio | |||||||||||||||||||
ASSETS: | |||||||||||||||||||||||
Investments, at value | $ | 32,827,047 | $ | 38,995,907 | $ | 17,851,168 | $ | 38,186,893 | $ | 15,403,620 | |||||||||||||
Receivables: | |||||||||||||||||||||||
Dividends | 14,780 | 6,255 | 38,342 | 74,697 | — | ||||||||||||||||||
Expense waivers | 10,003 | 6,479 | 7,985 | 7,416 | — | ||||||||||||||||||
Investments sold | — | — | — | — | — | ||||||||||||||||||
Other assets | 3,000 | 3,000 | 3,003 | 3,000 | — | ||||||||||||||||||
Total Assets | 32,854,830 | 39,011,641 | 17,900,498 | 38,272,006 | 15,403,620 | ||||||||||||||||||
LIABILITES: | |||||||||||||||||||||||
Due to custodian | 6,064 | 6,063 | 6,064 | 6,064 | 156 | ||||||||||||||||||
Payables: | |||||||||||||||||||||||
Investments purchased | — | — | — | 60,824 | — | ||||||||||||||||||
Accrued advisory fees | 13,173 | 16,213 | 7,532 | 15,234 | 7,708 | ||||||||||||||||||
Accrued expenses | 56,542 | 47,398 | 38,956 | 51,108 | — | ||||||||||||||||||
Total Liabilities | 75,779 | 69,674 | 52,552 | 133,230 | 7,864 | ||||||||||||||||||
NET ASSETS | $ | 32,779,051 | $ | 38,941,967 | $ | 17,847,946 | $ | 38,138,776 | $ | 15,395,756 | |||||||||||||
NET ASSETS CONSIST OF: | |||||||||||||||||||||||
Shares of beneficial interest | $ | 58,661,206 | $ | 52,581,462 | $ | 26,785,598 | $ | 46,578,792 | $ | 13,304,249 | |||||||||||||
Undistributed net investment income (loss) | 38,292 | (3,327 | ) | 80,152 | 209,791 | — | |||||||||||||||||
Accumulated net realized gain (loss) on investments | (30,682,974 | ) | (18,355,264 | ) | (11,216,053 | ) | (10,184,672 | ) | (361,802 | ) | |||||||||||||
Net unrealized appreciation on investments | 4,762,527 | 4,719,096 | 2,198,249 | 1,534,865 | 2,453,309 | ||||||||||||||||||
Net Assets | $ | 32,779,051 | $ | 38,941,967 | $ | 17,847,946 | $ | 38,138,776 | $ | 15,395,756 | |||||||||||||
Shares outstanding (unlimited amount authorized, $0.01 par value) | 1,300,000 | 1,650,000 | 1,200,000 | 2,550,000 | 550,000 | ||||||||||||||||||
Net asset value | $ | 25.21 | $ | 23.60 | $ | 14.87 | $ | 14.96 | $ | 27.99 | |||||||||||||
Share price | $ | 25.20 | $ | 23.59 | $ | 14.88 | $ | 14.96 | $ | 28.01 | |||||||||||||
Investments, at cost | $ | 28,064,520 | $ | 34,276,811 | $ | 15,652,919 | $ | 36,652,028 | $ | 12,950,311 |
47
Statements of Operations
Year Ended April 30, 2010
PowerShares Dynamic Basic Materials Sector Portfolio | PowerShares Dynamic Consumer Discretionary Sector Portfolio | PowerShares Dynamic Consumer Staples Sector Portfolio | PowerShares Dynamic Energy Sector Portfolio | PowerShares Dynamic Financial Sector Portfolio | PowerShares Dynamic Healthcare Sector Portfolio | ||||||||||||||||||||||
INVESTMENT INCOME: | |||||||||||||||||||||||||||
Dividend income | $ | 580,965 | $ | 146,114 | $ | 849,231 | $ | 473,765 | $ | 329,583 | $ | 687,350 | |||||||||||||||
Foreign withholding tax | — | — | — | (199 | ) | — | — | ||||||||||||||||||||
Total Income | 580,965 | 146,114 | 849,231 | 473,566 | 329,583 | 687,350 | |||||||||||||||||||||
EXPENSES: | |||||||||||||||||||||||||||
Advisory fees | 170,612 | 76,276 | 197,324 | 164,650 | 86,263 | 439,268 | |||||||||||||||||||||
Accounting & Administration fees | 64,668 | 64,668 | 64,668 | 64,668 | 64,668 | 64,668 | |||||||||||||||||||||
Professional fees | 31,052 | 30,441 | 31,309 | 31,095 | 30,560 | 33,558 | |||||||||||||||||||||
Sub-licensing | 17,061 | 7,628 | 19,732 | 16,465 | 8,626 | 43,927 | |||||||||||||||||||||
Custodian & transfer agent fees | 12,650 | 9,209 | 11,562 | 13,014 | 13,605 | 11,034 | |||||||||||||||||||||
Trustees | 5,065 | 4,526 | 5,389 | 5,127 | 4,636 | 7,004 | |||||||||||||||||||||
Other expense | 9,796 | 8,498 | 14,177 | 10,839 | 8,157 | 29,218 | |||||||||||||||||||||
Total Expenses | 310,904 | 201,246 | 344,161 | 305,858 | 216,515 | 628,677 | |||||||||||||||||||||
Waivers | (89,108 | ) | (102,087 | ) | (87,640 | ) | (91,813 | ) | (104,373 | ) | (57,629 | ) | |||||||||||||||
Net Expenses | 221,796 | 99,159 | 256,521 | 214,045 | 112,142 | 571,048 | |||||||||||||||||||||
Net Investment Income (Loss) | 359,169 | 46,955 | 592,710 | 259,521 | 217,441 | 116,302 | |||||||||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | |||||||||||||||||||||||||||
Net realized gain (loss) from: | |||||||||||||||||||||||||||
Investments | (2,010,552 | ) | (437,368 | ) | (1,462,108 | ) | 520,279 | (2,079,921 | ) | (6,013,971 | ) | ||||||||||||||||
In-kind redemptions | 4,560,798 | 3,966,776 | 5,800,261 | 6,512,475 | 1,331,377 | 13,765,067 | |||||||||||||||||||||
Net realized gain (loss) | 2,550,246 | 3,529,408 | 4,338,153 | 7,032,754 | (748,544 | ) | 7,751,096 | ||||||||||||||||||||
Net change in unrealized appreciation on investments | 11,196,576 | 1,633,591 | 5,799,571 | 5,612,261 | 4,491,634 | 23,695,539 | |||||||||||||||||||||
Net realized and unrealized gain on investments | 13,746,822 | 5,162,999 | 10,137,724 | 12,645,015 | 3,743,090 | 31,446,635 | |||||||||||||||||||||
Net increase in net assets resulting from operations | $ | 14,105,991 | $ | 5,209,954 | $ | 10,730,434 | $ | 12,904,536 | $ | 3,960,531 | $ | 31,562,937 |
See Notes to Financial Statements.
48
PowerShares Dynamic Industrials Sector Portfolio | PowerShares Dynamic Technology Sector Portfolio | PowerShares Dynamic Telecommunications & Wireless Portfolio | PowerShares Dynamic Utilities Portfolio | PowerShares NASDAQ Internet Portfolio | |||||||||||||||||||
INVESTMENT INCOME: | |||||||||||||||||||||||
Dividend income | $ | 818,093 | $ | 142,626 | $ | 463,062 | $ | 1,345,722 | $ | 13,099 | |||||||||||||
Foreign withholding tax | — | — | — | — | — | ||||||||||||||||||
Total Income | 818,093 | 142,626 | 463,062 | 1,345,722 | 13,099 | ||||||||||||||||||
EXPENSES: | |||||||||||||||||||||||
Advisory fees | 259,189 | 174,405 | 82,546 | 154,983 | 57,128 | ||||||||||||||||||
Accounting & Administration fees | 64,668 | 64,668 | 64,668 | 64,668 | — | ||||||||||||||||||
Professional fees | 32,295 | 31,255 | 30,434 | 31,083 | — | ||||||||||||||||||
Sub-licensing | 25,919 | 17,441 | 4,953 | 9,299 | — | ||||||||||||||||||
Custodian & transfer agent fees | 11,615 | 9,030 | 8,932 | 10,103 | — | ||||||||||||||||||
Trustees | 5,717 | 5,210 | 4,604 | 5,139 | — | ||||||||||||||||||
Other expense | 24,950 | 12,040 | 10,366 | 18,263 | — | ||||||||||||||||||
Total Expenses | 424,353 | 314,049 | 206,503 | 293,538 | 57,128 | ||||||||||||||||||
Waivers | (87,408 | ) | (87,323 | ) | (102,496 | ) | (98,256 | ) | — | ||||||||||||||
Net Expenses | 336,945 | 226,726 | 104,007 | 195,282 | 57,128 | ||||||||||||||||||
Net Investment Income (Loss) | 481,148 | (84,100 | ) | 359,055 | 1,150,440 | (44,029 | ) | ||||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: | |||||||||||||||||||||||
Net realized gain (loss) from: | |||||||||||||||||||||||
Investments | (4,637,419 | ) | (455,429 | ) | (1,799,752 | ) | (3,234,265 | ) | (242,379 | ) | |||||||||||||
In-kind redemptions | 19,395,929 | 10,395,097 | 2,968,229 | 1,183,833 | 751,430 | ||||||||||||||||||
Net realized gain (loss) | 14,758,510 | 9,939,668 | 1,168,477 | (2,050,432 | ) | 509,051 | |||||||||||||||||
Net change in unrealized appreciation on investments | 3,451,740 | 974,199 | 3,850,823 | 6,159,493 | 2,973,941 | ||||||||||||||||||
Net realized and unrealized gain on investments | 18,210,250 | 10,913,867 | 5,019,300 | 4,109,061 | 3,482,992 | ||||||||||||||||||
Net increase in net assets resulting from operations | $ | 18,691,398 | $ | 10,829,767 | $ | 5,378,355 | $ | 5,259,501 | $ | 3,438,963 |
49
Statements of Changes in Net Assets
PowerShares Dynamic Basic Materials Sector Portfolio | PowerShares Dynamic Consumer Discretionary Sector Portfolio | PowerShares Dynamic Consumer Staples Sector Portfolio | |||||||||||||||||||||||||
Year Ended April 30, 2010 | Year Ended April 30, 2009 | Year Ended April 30, 2010 | Year Ended April 30, 2009 | Year Ended April 30, 2010 | Year Ended April 30, 2009 | ||||||||||||||||||||||
OPERATIONS: | |||||||||||||||||||||||||||
Net investment income | $ | 359,169 | $ | 438,599 | $ | 46,955 | $ | 80,941 | $ | 592,710 | $ | 642,507 | |||||||||||||||
Net realized gain (loss) on investments | 2,550,246 | (11,459,144 | ) | 3,529,408 | (4,712,890 | ) | 4,338,153 | (6,009,789 | ) | ||||||||||||||||||
Net change in unrealized appreciation (depreciation) on investments | 11,196,576 | (6,905,563 | ) | 1,633,591 | 1,977,179 | 5,799,571 | (1,522,087 | ) | |||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 14,105,991 | (17,926,108 | ) | 5,209,954 | (2,654,770 | ) | 10,730,434 | (6,889,369 | ) | ||||||||||||||||||
Undistributed net investment income (loss) included in the price of units issued and redeemed | 46,497 | (6,851 | ) | (12,574 | ) | (54,188 | ) | (93,966 | ) | 217,757 | |||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||||||||||||
Net investment income | (372,907 | ) | (463,180 | ) | (42,516 | ) | (83,601 | ) | (710,824 | ) | (473,177 | ) | |||||||||||||||
Return of capital | — | — | — | (1,843 | ) | — | — | ||||||||||||||||||||
Total distributions to shareholders | (372,907 | ) | (463,180 | ) | (42,516 | ) | (85,444 | ) | (710,824 | ) | (473,177 | ) | |||||||||||||||
SHAREHOLDER TRANSACTIONS: | |||||||||||||||||||||||||||
Proceeds from shares sold | 32,708,442 | 22,737,065 | 21,715,269 | 42,174,838 | 21,673,659 | 33,416,470 | |||||||||||||||||||||
Value of shares repurchased | (16,053,293 | ) | (29,769,000 | ) | (19,195,521 | ) | (37,003,776 | ) | (30,374,655 | ) | (12,672,345 | ) | |||||||||||||||
Net income equalization | (46,497 | ) | 6,851 | 12,574 | 54,188 | 93,966 | (217,757 | ) | |||||||||||||||||||
Net increase (decrease) in net assets resulting from shares transactions | 16,608,652 | (7,025,084 | ) | 2,532,322 | 5,225,250 | (8,607,030 | ) | 20,526,368 | |||||||||||||||||||
Increase (Decrease) in Net Assets | 30,388,233 | (25,421,223 | ) | 7,687,186 | 2,430,848 | 1,318,614 | 13,381,579 | ||||||||||||||||||||
NET ASSETS: | |||||||||||||||||||||||||||
Beginning of year | 18,128,798 | 43,550,021 | 13,657,806 | 11,226,958 | 37,453,287 | 24,071,708 | |||||||||||||||||||||
End of year | $ | 48,517,031 | $ | 18,128,798 | $ | 21,344,992 | $ | 13,657,806 | $ | 38,771,901 | $ | 37,453,287 | |||||||||||||||
Undistributed net investment income (loss) at end of year | $ | 58,140 | $ | 71,878 | $ | 1,779 | $ | (2,660 | ) | $ | 83,236 | $ | 201,350 | ||||||||||||||
CHANGES IN SHARES OUTSTANDING: | |||||||||||||||||||||||||||
Shares sold | 1,250,000 | 800,000 | 1,100,000 | 2,600,000 | 900,000 | 1,500,000 | |||||||||||||||||||||
Shares repurchased | (600,000 | ) | (1,100,000 | ) | (1,000,000 | ) | (2,300,000 | ) | (1,250,000 | ) | (600,000 | ) | |||||||||||||||
Shares outstanding, beginning of year | 900,000 | 1,200,000 | 800,000 | 500,000 | 1,800,000 | 900,000 | |||||||||||||||||||||
Shares outstanding, end of year | 1,550,000 | 900,000 | 900,000 | 800,000 | 1,450,000 | 1,800,000 |
See Notes to Financial Statements.
50
PowerShares Dynamic Energy Sector Portfolio | PowerShares Dynamic Financial Sector Portfolio | PowerShares Dynamic Healthcare Sector Portfolio | |||||||||||||||||||||||||
Year Ended April 30, 2010 | Year Ended April 30, 2009 | Year Ended April 30, 2010 | Year Ended April 30, 2009 | Year Ended April 30, 2010 | Year Ended April 30, 2009 | ||||||||||||||||||||||
OPERATIONS: | |||||||||||||||||||||||||||
Net investment income | $ | 259,521 | $ | 178,693 | $ | 217,441 | $ | 256,368 | $ | 116,302 | $ | 93,371 | |||||||||||||||
Net realized gain (loss) on investments | 7,032,754 | (8,985,010 | ) | (748,544 | ) | (9,220,322 | ) | 7,751,096 | (40,173,071 | ) | |||||||||||||||||
Net change in unrealized appreciation (depreciation) on investments | 5,612,261 | (6,310,019 | ) | 4,491,634 | (1,126,796 | ) | 23,695,539 | 3,120,607 | |||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 12,904,536 | (15,116,336 | ) | 3,960,531 | (10,090,750 | ) | 31,562,937 | (36,959,093 | ) | ||||||||||||||||||
Undistributed net investment income (loss) included in the price of units issued and redeemed | (53 | ) | 25,855 | (1,004 | ) | 2,117 | 3,968 | 23,648 | |||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||||||||||||
Net investment income | (298,571 | ) | (135,550 | ) | (228,052 | ) | (254,006 | ) | (214,570 | ) | — | ||||||||||||||||
Return of capital | — | — | — | — | (116,320 | ) | — | ||||||||||||||||||||
Total distributions to shareholders | (298,571 | ) | (135,550 | ) | (228,052 | ) | (254,006 | ) | (330,890 | ) | — | ||||||||||||||||
SHAREHOLDER TRANSACTIONS: | |||||||||||||||||||||||||||
Proceeds from shares sold | 39,626,811 | 39,796,946 | 13,906,402 | 17,493,282 | 74,249,218 | 95,864,233 | |||||||||||||||||||||
Value of shares repurchased | (39,439,871 | ) | (41,341,841 | ) | (14,729,644 | ) | (15,461,800 | ) | (79,459,523 | ) | (106,348,401 | ) | |||||||||||||||
Net income equalization | 53 | (25,855 | ) | 1,004 | (2,117 | ) | (3,968 | ) | (23,648 | ) | |||||||||||||||||
Net increase (decrease) in net assets resulting from shares transactions | 186,993 | (1,570,750 | ) | (822,238 | ) | 2,029,365 | (5,214,273 | ) | (10,507,816 | ) | |||||||||||||||||
Increase (Decrease) in Net Assets | 12,792,905 | (16,796,781 | ) | 2,909,237 | (8,313,274 | ) | 26,021,742 | (47,443,261 | ) | ||||||||||||||||||
NET ASSETS: | |||||||||||||||||||||||||||
Beginning of year | 25,878,043 | 42,674,824 | 14,630,081 | 22,943,355 | 71,576,022 | 119,019,283 | |||||||||||||||||||||
End of year | $ | 38,670,948 | $ | 25,878,043 | $ | 17,539,318 | $ | 14,630,081 | $ | 97,597,764 | $ | 71,576,022 | |||||||||||||||
Undistributed net investment income (loss) at end of year | $ | 7,289 | $ | 25,996 | $ | 46,098 | $ | 56,709 | $ | (4,622 | ) | $ | 93,371 | ||||||||||||||
CHANGES IN SHARES OUTSTANDING: | |||||||||||||||||||||||||||
Shares sold | 1,550,000 | 1,600,000 | 850,000 | 900,000 | 3,450,000 | 4,300,000 | |||||||||||||||||||||
Shares repurchased | (1,550,000 | ) | (1,400,000 | ) | (900,000 | ) | (900,000 | ) | (3,650,000 | ) | (4,900,000 | ) | |||||||||||||||
Shares outstanding, beginning of year | 1,300,000 | 1,100,000 | 1,000,000 | 1,000,000 | 4,000,000 | 4,600,000 | |||||||||||||||||||||
Shares outstanding, end of year | 1,300,000 | 1,300,000 | 950,000 | 1,000,000 | 3,800,000 | 4,000,000 |
51
Statements of Changes in Net Assets (Continued)
PowerShares Dynamic Industrials Sector Portfolio | PowerShares Dynamic Technology Sector Portfolio | PowerShares Dynamic Telecommunications & Wireless Portfolio | |||||||||||||||||||||||||
Year Ended April 30, 2010 | Year Ended April 30, 2009 | Year Ended April 30, 2010 | Year Ended April 30, 2009 | Year Ended April 30, 2010 | Year Ended April 30, 2009 | ||||||||||||||||||||||
OPERATIONS: | |||||||||||||||||||||||||||
Net investment income (loss) | $ | 481,148 | $ | 544,925 | $ | (84,100 | ) | $ | (14,029 | ) | $ | 359,055 | $ | 245,910 | |||||||||||||
Net realized gain (loss) on investments | 14,758,510 | (34,331,640 | ) | 9,939,668 | (20,069,669 | ) | 1,168,477 | (4,428,234 | ) | ||||||||||||||||||
Net change in unrealized appreciation (depreciation) on investments | 3,451,740 | 791,867 | 974,199 | 3,563,803 | 3,850,823 | (391,588 | ) | ||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 18,691,398 | (32,994,848 | ) | 10,829,767 | (16,519,895 | ) | 5,378,355 | (4,573,912 | ) | ||||||||||||||||||
Undistributed net investment income (loss) included in the price of units issued and redeemed | (152,197 | ) | 83,792 | (10,830 | ) | (33,735 | ) | (20,416 | ) | (8,969 | ) | ||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||||||||||||
Net investment income | (585,231 | ) | (413,638 | ) | — | — | (330,581 | ) | (194,232 | ) | |||||||||||||||||
Return of capital | — | — | — | — | — | — | |||||||||||||||||||||
Total distributions to shareholders | (585,231 | ) | (413,638 | ) | — | — | (330,581 | ) | (194,232 | ) | |||||||||||||||||
SHAREHOLDER TRANSACTIONS: | |||||||||||||||||||||||||||
Proceeds from shares sold | 102,731,657 | 117,152,678 | 46,780,788 | 57,419,781 | 13,769,359 | 9,693,362 | |||||||||||||||||||||
Value of shares repurchased | (148,383,157 | ) | (59,816,387 | ) | (44,600,368 | ) | (52,213,652 | ) | (15,380,926 | ) | (8,833,055 | ) | |||||||||||||||
Net income equalization | 152,197 | (83,792 | ) | 10,830 | 33,735 | 20,416 | 8,969 | ||||||||||||||||||||
Net increase (decrease) in net assets resulting from shares transactions | (45,499,303 | ) | 57,252,499 | 2,191,250 | 5,239,864 | (1,591,151 | ) | 869,276 | |||||||||||||||||||
Increase (Decrease) in Net Assets | (27,545,333 | ) | 23,927,805 | 13,010,187 | (11,313,766 | ) | 3,436,207 | (3,907,837 | ) | ||||||||||||||||||
NET ASSETS: | |||||||||||||||||||||||||||
Beginning of year | 60,324,384 | 36,396,579 | 25,931,780 | 37,245,546 | 14,411,739 | 18,319,576 | |||||||||||||||||||||
End of year | $ | 32,779,051 | $ | 60,324,384 | $ | 38,941,967 | $ | 25,931,780 | $ | 17,847,946 | $ | 14,411,739 | |||||||||||||||
Undistributed net investment income (loss) at end of year | $ | 38,292 | $ | 142,375 | $ | (3,327 | ) | $ | (3,182 | ) | $ | 80,152 | $ | 51,678 | |||||||||||||
CHANGES IN SHARES OUTSTANDING: | |||||||||||||||||||||||||||
Shares sold | 5,100,000 | 4,700,000 | 2,350,000 | 2,700,000 | 1,100,000 | 800,000 | |||||||||||||||||||||
Shares repurchased | (7,000,000 | ) | (2,700,000 | ) | (2,200,000 | ) | (2,700,000 | ) | (1,200,000 | ) | (700,000 | ) | |||||||||||||||
Shares outstanding, beginning of year | 3,200,000 | 1,200,000 | 1,500,000 | 1,500,000 | 1,300,000 | 1,200,000 | |||||||||||||||||||||
Shares outstanding, end of year | 1,300,000 | 3,200,000 | 1,650,000 | 1,500,000 | 1,200,000 | 1,300,000 |
* Commencement of Investment Operations.
See Notes to Financial Statements.
52
PowerShares Dynamic Utilities Portfolio | PowerShares NASDAQ Internet Portfolio | ||||||||||||||||||
Year Ended April 30, 2010 | Year Ended April 30, 2009 | Year Ended April 30, 2010 | For the Period June 10, 2008* Through April 30, 2009 | ||||||||||||||||
OPERATIONS: | |||||||||||||||||||
Net investment income (loss) | $ | 1,150,440 | $ | 1,570,168 | $ | (44,029 | ) | $ | (7,679 | ) | |||||||||
Net realized gain (loss) on investments | (2,050,432 | ) | (10,791,520 | ) | 509,051 | (154,271 | ) | ||||||||||||
Net change in unrealized appreciation (depreciation) on investments | 6,159,493 | (5,703,784 | ) | 2,973,941 | (520,632 | ) | |||||||||||||
Net increase (decrease) in net assets resulting from operations | 5,259,501 | (14,925,136 | ) | 3,438,963 | (682,582 | ) | |||||||||||||
Undistributed net investment income (loss) included in the price of units issued and redeemed | (377,901 | ) | (189 | ) | (50,661 | ) | — | ||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||||
Net investment income | (1,469,967 | ) | (1,226,368 | ) | — | — | |||||||||||||
Return of capital | — | — | — | (1,258 | ) | ||||||||||||||
Total distributions to shareholders | (1,469,967 | ) | (1,226,368 | ) | — | (1,258 | ) | ||||||||||||
SHAREHOLDER TRANSACTIONS: | |||||||||||||||||||
Proceeds from shares sold | 35,752,793 | 75,893,770 | 13,980,103 | 2,472,464 | |||||||||||||||
Value of shares repurchased | (43,474,177 | ) | (57,600,692 | ) | (3,811,934 | ) | — | ||||||||||||
Net income equalization | 377,901 | 189 | 50,661 | — | |||||||||||||||
Net increase (decrease) in net assets resulting from shares transactions | (7,343,483 | ) | 18,293,267 | 10,218,830 | 2,472,464 | ||||||||||||||
Increase (Decrease) in Net Assets | (3,931,850 | ) | 2,141,574 | 13,607,132 | 1,788,624 | ||||||||||||||
NET ASSETS: | |||||||||||||||||||
Beginning of year | 42,070,626 | 39,929,052 | 1,788,624 | — | |||||||||||||||
End of year | $ | 38,138,776 | $ | 42,070,626 | $ | 15,395,756 | $ | 1,788,624 | |||||||||||
Undistributed net investment income (loss) at end of year | $ | 209,791 | $ | 529,318 | $ | — | $ | — | |||||||||||
CHANGES IN SHARES OUTSTANDING: | |||||||||||||||||||
Shares sold | 2,500,000 | 5,000,000 | 600,000 | 100,000 | |||||||||||||||
Shares repurchased | (3,150,000 | ) | (3,900,000 | ) | (150,000 | ) | — | ||||||||||||
Shares outstanding, beginning of year | 3,200,000 | 2,100,000 | 100,000 | — | |||||||||||||||
Shares outstanding, end of year | 2,550,000 | 3,200,000 | 550,000 | 100,000 |
53
Financial Highlights
PowerShares Dynamic Basic Materials Sector Portfolio
Year Ended April 30, | For the Period October 12, 2006* Through | ||||||||||||||||||
2010 | 2009 | 2008 | April 30, 2007 | ||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||
Net asset value at beginning of period | $ | 20.14 | $ | 36.29 | $ | 31.65 | $ | 25.56 | |||||||||||
Net investment income** | 0.28 | 0.42 | 0.33 | 0.24 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 11.20 | (16.15 | ) | 4.55 | 6.05 | ||||||||||||||
Total from investment operations | 11.48 | (15.73 | ) | 4.88 | 6.29 | ||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||
Net investment income | (0.32 | ) | (0.42 | ) | (0.24 | ) | (0.20 | ) | |||||||||||
Net asset value at end of period | $ | 31.30 | $ | 20.14 | $ | 36.29 | $ | 31.65 | |||||||||||
Share price at end of period*** | $ | 31.34 | $ | 20.15 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN**** | 57.46 | % | (43.63 | )% | 15.47 | % | 24.69 | % | |||||||||||
SHARE PRICE TOTAL RETURN**** | 57.59 | % | (43.59 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 48,517 | $ | 18,129 | $ | 43,550 | $ | 18,988 | |||||||||||
Ratio to average net assets of: | |||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.65 | % | 0.65 | % | 0.68 | % | 0.71 | %† | |||||||||||
Expenses, prior to (Waivers) and/or Recapture | 0.91 | % | 0.97 | % | 0.96 | % | 1.32 | %† | |||||||||||
Net investment income, after (Waivers) and/or Recapture | 1.05 | % | 1.57 | % | 0.95 | % | 1.52 | %† | |||||||||||
Portfolio turnover rate †† | 46 | % | 47 | % | 28 | % | 9 | % | |||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | 0.04 | $ | (0.01 | ) | $ | 0.03 | $ | 0.02 |
PowerShares Dynamic Consumer Discretionary Sector Portfolio
Year Ended April 30, | For the Period October 12, 2006* Through | ||||||||||||||||||
2010 | 2009 | 2008 | April 30, 2007 | ||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||
Net asset value at beginning of period | $ | 17.07 | $ | 22.45 | $ | 28.59 | $ | 25.43 | |||||||||||
Net investment income** | 0.06 | 0.13 | 0.10 | 0.09 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 6.65 | (5.35 | ) | (6.11 | ) | 3.23 | |||||||||||||
Total from investment operations | 6.71 | (5.22 | ) | (6.01 | ) | 3.32 | |||||||||||||
Distributions to shareholders from: | |||||||||||||||||||
Net investment income | (0.06 | ) | (0.15 | ) | (0.11 | ) | (0.16 | ) | |||||||||||
Return of capital | — | (0.01 | ) | (0.02 | ) | — | |||||||||||||
Total distributions | (0.06 | ) | (0.16 | ) | (0.13 | ) | (0.16 | ) | |||||||||||
Net asset value at end of period | $ | 23.72 | $ | 17.07 | $ | 22.45 | $ | 28.59 | |||||||||||
Share price at end of period*** | $ | 24.12 | $ | 17.07 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN**** | 39.37 | % | (23.19 | )% | (21.10 | )% | 13.11 | % | |||||||||||
SHARE PRICE TOTAL RETURN**** | 39.49 | % | (23.22 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 21,345 | $ | 13,658 | $ | 11,227 | $ | 17,156 | |||||||||||
Ratio to average net assets of: | |||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.65 | % | 0.64 | % | 0.70 | % | 0.72 | %† | |||||||||||
Expenses, prior to (Waivers) and/or Recapture | 1.32 | % | 1.68 | % | 1.31 | % | 1.41 | %† | |||||||||||
Net investment income, after (Waivers) and/or Recapture | 0.31 | % | 0.81 | % | 0.36 | % | 0.65 | %† | |||||||||||
Portfolio turnover rate †† | 86 | % | 157 | % | 95 | % | 20 | % | |||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | (0.02 | ) | $ | (0.09 | ) | $ | 0.02 | $ | (0.11 | ) |
* Commencement of Investment Operations.
** Based on average shares outstanding.
*** The mean between the last bid and ask prices.
**** Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all dividends and distributions at share price during the period, and sale at the share price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
† Annualized.
†† Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
# The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
See Notes to Financial Statements.
54
Financial Highlights (Continued)
PowerShares Dynamic Consumer Staples Sector Portfolio
Year Ended April 30, | For the Period October 12, 2006* Through | ||||||||||||||||||
2010 | 2009 | 2008 | April 30, 2007 | ||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||
Net asset value at beginning of period | $ | 20.81 | $ | 26.75 | $ | 28.16 | $ | 25.25 | |||||||||||
Net investment income** | 0.36 | 0.45 | 0.34 | 0.49 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 5.99 | (6.04 | ) | (1.43 | ) | 2.69 | |||||||||||||
Total from investment operations | 6.35 | (5.59 | ) | (1.09 | ) | 3.18 | |||||||||||||
Distributions to shareholders from: | |||||||||||||||||||
Net investment income | (0.42 | ) | (0.35 | ) | (0.32 | ) | (0.27 | ) | |||||||||||
Net asset value at end of period | $ | 26.74 | $ | 20.81 | $ | 26.75 | $ | 28.16 | |||||||||||
Share price at end of period*** | $ | 26.74 | $ | 20.79 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN**** | 30.87 | % | (21.02 | )% | (3.94 | )% | 12.69 | % | |||||||||||
SHARE PRICE TOTAL RETURN**** | 30.99 | % | (21.09 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 38,772 | $ | 37,453 | $ | 24,072 | $ | 11,264 | |||||||||||
Ratio to average net assets of: | |||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.65 | % | 0.65 | % | 0.69 | % | 0.73 | %† | |||||||||||
Expenses, prior to (Waivers) and/or Recapture | 0.87 | % | 0.94 | % | 1.18 | % | 1.46 | %† | |||||||||||
Net investment income, after (Waivers) and/or Recapture | 1.50 | % | 2.07 | % | 1.22 | % | 3.42 | %† | |||||||||||
Portfolio turnover rate †† | 67 | % | 48 | % | 44 | % | 18 | % | |||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | (0.06 | ) | $ | 0.15 | $ | 0.22 | $ | 0.04 |
PowerShares Dynamic Energy Sector Portfolio
Year Ended April 30, | For the Period October 12, 2006* Through | ||||||||||||||||||
2010 | 2009 | 2008 | April 30, 2007 | ||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||
Net asset value at beginning of period | $ | 19.91 | $ | 38.80 | $ | 31.90 | $ | 25.80 | |||||||||||
Net investment income** | 0.20 | 0.18 | 0.14 | 0.05 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 9.87 | (18.93 | ) | 6.84 | 6.08 | ||||||||||||||
Total from investment operations | 10.07 | (18.75 | ) | 6.98 | 6.13 | ||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||
Net investment income | (0.23 | ) | (0.14 | ) | (0.08 | ) | (0.03 | ) | |||||||||||
Net asset value at end of period | $ | 29.75 | $ | 19.91 | $ | 38.80 | $ | 31.90 | |||||||||||
Share price at end of period*** | $ | 29.75 | $ | 19.92 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN**** | 50.81 | % | (48.52 | )% | 21.93 | % | 23.78 | % | |||||||||||
SHARE PRICE TOTAL RETURN**** | 50.73 | % | (48.44 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 38,671 | $ | 25,878 | $ | 42,675 | $ | 19,137 | |||||||||||
Ratio to average net assets of: | |||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.65 | % | 0.65 | % | 0.68 | % | 0.71 | %† | |||||||||||
Expenses, prior to (Waivers) and/or Recapture | 0.93 | % | 0.98 | % | 0.96 | % | 1.22 | %† | |||||||||||
Net investment income, after (Waivers) and/or Recapture | 0.79 | % | 0.65 | % | 0.41 | % | 0.28 | %† | |||||||||||
Portfolio turnover rate †† | 63 | % | 67 | % | 50 | % | 12 | % | |||||||||||
Undistributed net investment income included in price of units issued and redeemed**# | $ | 0.00 | (a) | $ | 0.03 | $ | 0.02 | $ | — |
* Commencement of Investment Operations.
** Based on average shares outstanding.
*** The mean between the last bid and ask prices.
**** Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all dividends and distributions at share price during the period, and sale at the share price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
† Annualized.
†† Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
# The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(a) Amount represents less than $0.005.
See Notes to Financial Statements.
55
Financial Highlights (Continued)
PowerShares Dynamic Financial Sector Portfolio
Year Ended April 30, | For the Period October 12, 2006* Through | ||||||||||||||||||
2010 | 2009 | 2008 | April 30, 2007 | ||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||
Net asset value at beginning of period | $ | 14.63 | $ | 22.94 | $ | 26.51 | $ | 25.16 | |||||||||||
Net investment income** | 0.21 | 0.24 | 0.25 | 0.13 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 3.84 | (8.33 | ) | (3.59 | ) | 1.31 | |||||||||||||
Total from investment operations | 4.05 | (8.09 | ) | (3.34 | ) | 1.44 | |||||||||||||
Distributions to shareholders from: | |||||||||||||||||||
Net investment income | (0.22 | ) | (0.22 | ) | (0.23 | ) | (0.09 | ) | �� | ||||||||||
Net asset value at end of period | $ | 18.46 | $ | 14.63 | $ | 22.94 | $ | 26.51 | |||||||||||
Share price at end of period*** | $ | 18.45 | $ | 14.60 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN**** | 27.90 | % | (35.53 | )% | (12.69 | )% | 5.72 | % | |||||||||||
SHARE PRICE TOTAL RETURN**** | 28.09 | % | (35.66 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 17,539 | $ | 14,630 | $ | 22,943 | $ | 7,954 | |||||||||||
Ratio to average net assets of: | |||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.65 | % | 0.65 | % | 0.72 | % | 0.72 | %† | |||||||||||
Expenses, prior to (Waivers) and/or Recapture | 1.25 | % | 1.13 | % | 1.42 | % | 1.38 | %† | |||||||||||
Net investment income, after (Waivers) and/or Recapture | 1.26 | % | 1.27 | % | 1.07 | % | 0.87 | %† | |||||||||||
Portfolio turnover rate †† | 97 | % | 66 | % | 50 | % | 33 | % | |||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | 0.00 | (a) | $ | 0.00 | (a) | $ | 0.05 | $ | (0.02 | ) |
PowerShares Dynamic Healthcare Sector Portfolio
Year Ended April 30, | For the Period October 12, 2006* Through | ||||||||||||||||||
2010 | 2009 | 2008 | April 30, 2007 | ||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||
Net asset value at beginning of period | $ | 17.89 | $ | 25.87 | $ | 28.59 | $ | 25.01 | |||||||||||
Net investment income (loss)** | 0.03 | 0.02 | (0.05 | ) | (0.04 | ) | |||||||||||||
Net realized and unrealized gain (loss) on investments | 7.84 | (8.00 | ) | (2.67 | ) | 3.62 | |||||||||||||
Total from investment operations | 7.87 | (7.98 | ) | (2.72 | ) | 3.58 | |||||||||||||
Distributions to shareholders from: | |||||||||||||||||||
Net investment income | (0.05 | ) | — | — | — | ||||||||||||||
Return of capital | (0.03 | ) | — | — | — | ||||||||||||||
Total distributions | (0.08 | ) | — | — | — | ||||||||||||||
Net asset value at end of period | $ | 25.68 | $ | 17.89 | $ | 25.87 | $ | 28.59 | |||||||||||
Share price at end of period*** | $ | 25.67 | $ | 17.86 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN**** | 44.09 | % | (30.85 | )% | (9.51 | )% | 14.31 | % | |||||||||||
SHARE PRICE TOTAL RETURN**** | 44.28 | % | (30.94 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 97,598 | $ | 71,576 | $ | 119,019 | $ | 57,183 | |||||||||||
Ratio to average net assets of: | |||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.65 | % | 0.65 | % | 0.66 | % | 0.71 | %† | |||||||||||
Expenses, prior to (Waivers) and/or Recapture | 0.72 | % | 0.71 | % | 0.72 | % | 1.20 | %† | |||||||||||
Net investment income (loss), after (Waivers) and/or Recapture | 0.13 | % | 0.10 | % | (0.17 | )% | (0.31 | )%† | |||||||||||
Portfolio turnover rate †† | 79 | % | 96 | % | 75 | % | 14 | % | |||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | 0.00 | (a) | $ | 0.01 | $ | (0.04 | ) | $ | (0.05 | ) |
* Commencement of Investment Operations.
** Based on average shares outstanding.
*** The mean between the last bid and ask prices.
**** Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all dividends and distributions at share price during the period, and sale at the share price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
† Annualized.
†† Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
# The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(a) Amount represents less than $0.005.
See Notes to Financial Statements.
56
Financial Highlights (Continued)
PowerShares Dynamic Industrials Sector Portfolio
Year Ended April 30, | For the Period October 12, 2006* Through | ||||||||||||||||||
2010 | 2009 | 2008 | April 30, 2007 | ||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||
Net asset value at beginning of period | $ | 18.85 | $ | 30.33 | $ | 29.34 | $ | 25.72 | |||||||||||
Net investment income** | 0.20 | 0.22 | 0.14 | 0.04 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 6.48 | (11.55 | ) | 1.00 | 3.63 | ||||||||||||||
Total from investment operations | 6.68 | (11.33 | ) | 1.14 | 3.67 | ||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||
Net investment income | (0.32 | ) | (0.15 | ) | (0.15 | ) | (0.04 | ) | |||||||||||
Return of capital | — | — | — | (0.01 | ) | ||||||||||||||
Total distributions | (0.32 | ) | (0.15 | ) | (0.15 | ) | (0.05 | ) | |||||||||||
Net asset value at end of period | $ | 25.21 | $ | 18.85 | $ | 30.33 | $ | 29.34 | |||||||||||
Share price at end of period*** | $ | 25.20 | $ | 18.82 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN**** | 35.73 | % | (37.41 | )% | 3.90 | % | 14.28 | % | |||||||||||
SHARE PRICE TOTAL RETURN**** | 35.89 | % | (37.51 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 32,779 | $ | 60,324 | $ | 36,397 | $ | 26,409 | |||||||||||
Ratio to average net assets of: | |||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.65 | % | 0.65 | % | 0.68 | % | 0.71 | %† | |||||||||||
Expenses, prior to (Waivers) and/or Recapture | 0.82 | % | 0.81 | % | 0.90 | % | 1.19 | %† | |||||||||||
Net investment income, after (Waivers) and/or Recapture | 0.93 | % | 1.05 | % | 0.45 | % | 0.30 | %† | |||||||||||
Portfolio turnover rate †† | 121 | % | 81 | % | 84 | % | 14 | % | |||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | (0.06 | ) | $ | 0.03 | $ | 0.00 | (a) | $ | 0.01 |
PowerShares Dynamic Technology Sector Portfolio
Year Ended April 30, | For the Period October 12, 2006* Through | ||||||||||||||||||
2010 | 2009 | 2008 | April 30, 2007 | ||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||
Net asset value at beginning of period | $ | 17.29 | $ | 24.83 | $ | 27.76 | $ | 25.54 | |||||||||||
Net investment income (loss)** | (0.05 | ) | (0.01 | ) | (0.09 | ) | (0.07 | ) | |||||||||||
Net realized and unrealized gain (loss) on investments | 6.36 | (7.53 | ) | (2.84 | ) | 2.29 | |||||||||||||
Total from investment operations | 6.31 | (7.54 | ) | (2.93 | ) | 2.22 | |||||||||||||
Net asset value at end of period | $ | 23.60 | $ | 17.29 | $ | 24.83 | $ | 27.76 | |||||||||||
Share price at end of period*** | $ | 23.59 | $ | 17.29 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN**** | 36.50 | % | (30.37 | )% | (10.55 | )% | 8.69 | % | |||||||||||
SHARE PRICE TOTAL RETURN**** | 36.44 | % | (30.31 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 38,942 | $ | 25,932 | $ | 37,246 | $ | 22,210 | |||||||||||
Ratio to average net assets of: | |||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.65 | % | 0.65 | % | 0.68 | % | 0.71 | %† | |||||||||||
Expenses, prior to (Waivers) and/or Recapture | 0.90 | % | 0.89 | % | 0.94 | % | 1.25 | %† | |||||||||||
Net investment income (loss), after (Waivers) and/or Recapture | (0.24 | )% | (0.04 | )% | (0.36 | )% | (0.49 | )%† | |||||||||||
Portfolio turnover rate †† | 71 | % | 90 | % | 77 | % | 27 | % | |||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.05 | ) | $ | (0.02 | ) |
* Commencement of Investment Operations.
** Based on average shares outstanding.
*** The mean between the last bid and ask prices.
**** Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all dividends and distributions at share price during the period, and sale at the share price on the last day of the period. Total investment return calculated for a period of less than one year are not annualized.
† Annualized.
†† Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
# The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(a) Amount represents less than $0.005.
See Notes to Financial Statements.
57
Financial Highlights (Continued)
PowerShares Dynamic Telecommunications & Wireless Portfolio
Year Ended April 30, | For the Period December 6, 2005* Through | ||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | April 30, 2006 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 11.09 | $ | 15.27 | $ | 19.77 | $ | 16.67 | $ | 14.95 | |||||||||||||
Net investment income** | 0.28 | ^ | 0.20 | 0.18 | 0.22 | 0.05 | |||||||||||||||||
Net realized and unrealized gain (loss) on investments | 3.77 | (4.22 | ) | (4.23 | ) | 3.08 | 1.70 | ||||||||||||||||
Total from investment operations | 4.05 | (4.02 | ) | (4.05 | ) | 3.30 | 1.75 | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.27 | ) | (0.16 | ) | (0.23 | ) | (0.20 | ) | (0.03 | ) | |||||||||||||
Return of capital | — | — | (0.22 | ) | — | — | |||||||||||||||||
Total distributions | (0.27 | ) | (0.16 | ) | (0.45 | ) | (0.20 | ) | (0.03 | ) | |||||||||||||
Net asset value at end of period | $ | 14.87 | $ | 11.09 | $ | 15.27 | $ | 19.77 | $ | 16.67 | |||||||||||||
Share price at end of period*** | $ | 14.88 | $ | 11.09 | |||||||||||||||||||
NET ASSET VALUE, TOTAL RETURN**** | 36.92 | % | (26.55 | )% | (20.96 | )% | 19.93 | % | 11.74 | % | |||||||||||||
SHARE PRICE TOTAL RETURN**** | 37.01 | % | (26.55 | )% | |||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 17,848 | $ | 14,412 | $ | 18,320 | $ | 33,606 | $ | 31,669 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.63 | % | 0.63 | % | 0.63 | % | 0.66 | % | 0.67 | %† | |||||||||||||
Expenses, prior to (Waivers) and/or Recapture | 1.25 | % | 1.29 | % | 1.01 | % | 1.12 | % | 0.97 | %† | |||||||||||||
Net investment income, after (Waivers) and/or Recapture | 2.17 | %^ | 1.59 | % | 0.94 | % | 1.24 | % | 0.79 | %† | |||||||||||||
Portfolio turnover rate †† | 46 | % | 46 | % | 49 | % | 43 | % | 3 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | (0.02 | ) | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.02 | ) | $ | — |
PowerShares Dynamic Utilities Portfolio
Year Ended April 30, | For the Period October 26, 2005* Through | ||||||||||||||||||||||
2010 | 2009 | 2008 | 2007 | April 30, 2006 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 13.15 | $ | 19.01 | $ | 20.54 | $ | 16.33 | $ | 15.32 | |||||||||||||
Net investment income** | 0.52 | 0.54 | 0.45 | 0.44 | 0.24 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 2.04 | (5.95 | ) | (1.53 | ) | 4.16 | 0.96 | ||||||||||||||||
Total from investment operations | 2.56 | (5.41 | ) | (1.08 | ) | 4.60 | 1.20 | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.75 | ) | (0.45 | ) | (0.45 | ) | (0.39 | ) | (0.19 | ) | |||||||||||||
Net asset value at end of period | $ | 14.96 | $ | 13.15 | $ | 19.01 | $ | 20.54 | $ | 16.33 | |||||||||||||
Share price at end of period*** | $ | 14.96 | $ | 13.13 | |||||||||||||||||||
NET ASSET VALUE, TOTAL RETURN**** | 19.79 | % | (29.00 | )% | (5.34 | )% | 28.48 | % | 7.82 | % | |||||||||||||
SHARE PRICE TOTAL RETURN**** | 19.97 | % | (29.11 | )% | |||||||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 38,139 | $ | 42,071 | $ | 39,929 | $ | 59,579 | $ | 22,861 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after (Waivers) and/or Recapture | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | 0.69 | %† | |||||||||||||
Expenses, prior to (Waivers) and/or Recapture | 0.95 | % | 0.82 | % | 0.86 | % | 0.92 | % | 0.89 | %† | |||||||||||||
Net investment income, after (Waivers) and/or Recapture | 3.71 | % | 3.44 | % | 2.32 | % | 2.34 | % | 2.62 | %† | |||||||||||||
Portfolio turnover rate †† | 81 | % | 68 | % | 64 | % | 39 | % | 38 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | (0.17 | ) | $ | 0.00 | (a) | $ | (0.05 | ) | $ | 0.05 | $ | (0.01 | ) |
* Commencement of Investment Operations.
** Based on average shares outstanding.
*** The mean between the last bid and ask prices.
**** Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all dividends and distributions at share price during the period, and sale at the share price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
† Annualized.
†† Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
^ Net investment income per share and the ratio of net investment income to average net assets include a special cash dividend received of $2 per share owned of DISH Network Corp., Class A on December 2, 2009. Net investment income per share and the ratio of net investment income to average net assets excluding the special dividend are $0.19 and 1.53%, respectively.
# The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(a) Amount represents less than $0.005.
See Notes to Financial Statements.
58
Financial Highlights (Continued)
PowerShares NASDAQ Internet Portfolio
Year Ended April 30, 2010 | For the Period June 10, 2008* Through April 30, 2009 | ||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||
Net asset value at beginning of period | $ | 17.89 | $ | 24.72 | |||||||
Net investment income (loss)** | (0.12 | ) | (0.08 | ) | |||||||
Net realized and unrealized gain (loss) on investments | 10.22 | (6.74 | ) | ||||||||
Total from investment operations | 10.10 | (6.82 | ) | ||||||||
Distributions to shareholders from: | |||||||||||
Return of capital | — | (0.01 | ) | ||||||||
Net asset value at end of period | $ | 27.99 | $ | 17.89 | |||||||
Share price at end of period*** | $ | 28.01 | $ | 17.88 | |||||||
NET ASSET VALUE, TOTAL RETURN**** | 56.46 | % | (27.56 | )%(a) | |||||||
SHARE PRICE TOTAL RETURN**** | 56.65 | % | (27.60 | )%(a) | |||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||
Net assets at end of period (000's omitted) | $ | 15,396 | $ | 1,789 | |||||||
Ratio to average net assets of: | |||||||||||
Expenses | 0.60 | % | 0.60 | %† | |||||||
Net investment income (loss) | (0.46 | )% | (0.51 | )%† | |||||||
Portfolio turnover rate †† | 23 | % | 25 | % | |||||||
Undistributed net investment income (loss) included in price of units issued and redeemed**# | $ | (0.13 | ) | $ | — |
* Commencement of Investment Operations.
** Based on average shares outstanding.
*** The mean between the last bid and ask prices.
**** Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period, and redemption on the last day of the period. Share price total return is calculated assuming an initial investment made at the share price at the beginning of the period, reinvestment of all dividends and distributions at share price during the period, and sale at the share price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized.
† Annualized.
†† Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
# The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(a) The net asset value, total return from Fund Inception (June 12, 2008, first day of trading on the exchange) to April 30, 2009 was (25.33)%. The share price total return from Fund Inception to April 30, 2009 was (26.53)%.
See Notes to Financial Statements.
59
Notes to Financial Statements
PowerShares Exchange-Traded Fund Trust
April 30, 2010
Note 1. Organization
PowerShares Exchange-Traded Fund Trust (the "Trust") was organized as a Massachusetts business trust on June 9, 2000 and is authorized to have multiple series of portfolios. The Trust is an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"). As of April 30, 2010, the Trust offered sixty-two portfolios. This report includes the following portfolios:
Full Name | Short Name | ||||||
PowerShares Dynamic Basic Materials Sector Portfolio | "Dynamic Basic Materials Sector Portfolio" | ||||||
PowerShares Dynamic Consumer Discretionary Sector Portfolio | "Dynamic Consumer Discretionary Sector Portfolio" | ||||||
PowerShares Dynamic Consumer Staples Sector Portfolio | "Dynamic Consumer Staples Sector Portfolio" | ||||||
PowerShares Dynamic Energy Sector Portfolio | "Dynamic Energy Sector Portfolio" | ||||||
PowerShares Dynamic Financial Sector Portfolio | "Dynamic Financial Sector Portfolio" | ||||||
PowerShares Dynamic Healthcare Sector Portfolio | "Dynamic Healthcare Sector Portfolio" | ||||||
PowerShares Dynamic Industrials Sector Portfolio | "Dynamic Industrials Sector Portfolio" | ||||||
PowerShares Dynamic Technology Sector Portfolio | "Dynamic Technology Sector Portfolio" | ||||||
PowerShares Dynamic Telecommunications & Wireless Portfolio | "Dynamic Telecommunications & Wireless Portfolio" | ||||||
PowerShares Dynamic Utilities Portfolio | "Dynamic Utilities Portfolio" | ||||||
PowerShares NASDAQ Internet Portfolio | "NASDAQ Internet Portfolio" | ||||||
Each portfolio (the "Fund" and collectively the "Funds") represents a separate series of the Trust. The shares of the Funds are referred to herein as "Shares" or "Fund's Shares." Each Fund's Shares are listed and traded on the NYSE Arca, Inc. ("NYSE Arca") except for Shares of the NASDAQ Internet Portfolio, which are listed and traded on the NASDAQ Stock Market LLC.
The Funds' market prices may differ to some degree from the net asset value ("NAV") of the Shares of each Fund. Unlike conventional mutual funds, each Fund issues and redeems Shares on a continuous basis, at NAV, only in a large specified number of Shares, each called a "Creation Unit." Creation Units are issued and redeemed generally in-kind for securities included in the relevant index. Except when aggregated in Creation Units, the Shares are not individually redeemable securities of the Funds.
The investment objective of each Fund is to seek investment results that corresponds generally to the price and yield (before the Fund's fees and expenses) of the following indices (each, an "Underlying Index"):
Fund | Index | ||||||
Dynamic Basic Materials Sector Portfolio | Dynamic Basic Materials Sector IntellidexSM Index | ||||||
Dynamic Consumer Discretionary Sector Portfolio | Dynamic Consumer Discretionary Sector IntellidexSM Index | ||||||
Dynamic Consumer Staples Sector Portfolio | Dynamic Consumer Staples Sector IntellidexSM Index | ||||||
Dynamic Energy Sector Portfolio | Dynamic Energy Sector IntellidexSM Index | ||||||
Dynamic Financial Sector Portfolio | Dynamic Financial Sector IntellidexSM Index | ||||||
Dynamic Healthcare Sector Portfolio | Dynamic Healthcare Sector IntellidexSM Index | ||||||
60
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
Fund | Index | ||||||
Dynamic Industrials Sector Portfolio | Dynamic Industrials Sector IntellidexSM Index | ||||||
Dynamic Technology Sector Portfolio | Dynamic Technology Sector IntellidexSM Index | ||||||
Dynamic Telecommunications & Wireless Portfolio | Dynamic Telecommunications & Wireless IntellidexSM Index | ||||||
Dynamic Utilities Portfolio | Dynamic Utilities IntellidexSM Index | ||||||
NASDAQ Internet Portfolio | NASDAQ Internet IndexSM | ||||||
Note 2. Significant Accounting Policies
The preparation of the financial statements in accordance with Generally Accepted Accounting Principles ("GAAP") in the United States of America requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements, including estimates and assumptions related to taxation. Actual results could differ from these estimates. In addition, the Funds monitor for material events or transactions that may occur or become known after the period-end date and before the date the financial statements are released to print.
A. Security Valuation
Securities, including restricted securities, are valued according to the following policies.
A security listed or traded on an exchange (except convertible bonds) is valued at its last sales price or official closing price as of the close of the customary trading session on the exchange where the security is principally traded, or lacking any sales or official closing price on a particular day, the security may be valued at the closing bid price on that day. Securities traded in the over-the-counter market are valued based on prices furnished by independent pricing services or market makers. Listed options, if no closing price is available, are valued at the mean between the last bid and ask prices from the exchange on which they are principally traded. Options not listed on an exchange are valued by an independent source at the mean between the last bid and ask prices.
Investments in open-end registered investment companies not traded on an exchange are valued at the end of day NAV per share.
Debt obligations (including convertible bonds) and unlisted equities are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service may be determined without exclusive reliance on quoted prices, and may reflect appropriate factors such as institution-size trading in similar groups of securities, developments related to specific securities, dividend rate, yield, quality, type of issue, coupon rate, maturity, individual trading characteristics and other market data. Short-term obligations, including commercial paper, having 60 days or less to maturity are recorded at amortized cost which approximates value. Debt securities are subject to interest rate and credit risks. In addition, all debt securities involve some risk of default with respect to interest and/or principal payments.
Foreign securities (including foreign exchange contracts) are converted into U.S. dollar amounts using the applicable exchange rates as of the close of the London world markets. If market quotations are available and reliable for foreign exchange traded equity securities, the securities will be valued at the market quotations. Because trading hours for certain foreign securities end before the close of the New York Stock Exchange ("NYSE"), closing market quotations may become unreliable. If between the time trading ends on a particular security and the close of the customary trading session on the NYSE, events occur that are significant and make the closing price unreliable, the Fund may fair value the security. If the event is likely
61
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
to have affected the closing price of the security, the security will be valued at fair value in good faith using procedures approved by the Board of Trustees. Adjustments to closing prices to reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based on historical data, that the closing price in the principal market where a foreign security trades is not the current value as of the close of the NYSE. Foreign securities meeting the approved degree of certainty that the price is not reflective of current value will be priced at the indication of fair value from the independent pricing service. Multiple factors may be considered by the independent pricing service in determining adjustments to reflect fair value and may include information relating to sector indices, American depository receipts and domestic and foreign index futures. Foreign securities m ay have additional risks including exchange rate changes, potential for sharply devalued currencies and high inflation, political and economic upheaval, the relative lack of issuer information, relatively low market liquidity and the potential lack of strict financial and accounting controls and standards.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources.
Securities for which market quotations are not readily available or are unreliable are valued at fair value as determined in good faith by or under the supervision of the Trust's officers following procedures approved by the Board of Trustees. Issuer specific events, market trends, bid/ask quotes of brokers and information providers and other market data may be reviewed in the course of making a good faith determination of a security's fair value.
Valuations change in response to many factors including the historical and prospective earnings of the issuer, the value of the issuer's assets, general economic conditions, interest rates, investor perceptions and market liquidity. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
B. Other Risks
Replication Management Risk. The Funds are not "actively" managed and do not seek returns in excess of their respective Underlying Indices. Therefore, they would not necessarily sell a stock because the stock's issuer was in financial trouble unless that stock is removed from its Underlying Index.
Non-Diversified Fund Risk. Dynamic Telecommunications & Wireless Portfolio, Dynamic Utilities Portfolio and NASDAQ Internet Portfolio are considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single investment could cause greater fluctuations in Share price than would occur in a diversified fund.
Concentration Risk. If a Fund concentrates its investments in an industry or group of industries, the value of the Fund's Shares may rise and fall more than the value of shares of a fund that invests in a broader range of securities.
Non-Correlation Risk. Each Fund's return may not match the return of its Underlying Index for a number of reasons. For example, each Fund incurs operating expenses not applicable to its Underlying Index, and incurs costs in buying and selling securities, especially when rebalancing the securities holdings to reflect changes in the composition of its Underlying Index. In addition, the performance of each Fund and its Underlying Index may vary due to asset valuation differences and differences between each Fund's portfolio and its Underlying Index resulting from legal restrictions, cost or liquidity constraints.
62
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
C. Federal Income Taxes
Each Fund intends to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of the Fund's taxable earnings to its shareholders. As such, the Funds will not be subject to Federal income taxes on otherwise taxable income (including net realized gains) that is distributed to the shareholders. Therefore, no provision for Federal income taxes is recorded in the financial statements.
Income and capital gain distributions are determined in accordance with Federal income tax regulations, which may differ from GAAP. These differences are primarily due to differing book and tax treatments for in-kind transactions, losses deferred due to wash sales, and passive foreign investment company adjustments, if any.
The Funds file tax returns in the United States Federal jurisdiction and certain other jurisdictions. Generally, a Fund is subject to examinations by such taxing authorities for up to three years after the filing of the return for the tax period.
D. Investment Income and Investment Transactions
Dividend income is recorded on the ex-dividend date net of foreign taxes withheld, if any. Interest income is recorded on the accrual basis. Investment transactions are recorded on the trade date. Realized gains and losses from the sale or disposition of securities are calculated on the specific identified cost basis. Dividends and interest received by a Fund may give rise to withholding and other taxes imposed by foreign countries. Corporate actions (including cash dividends) are recorded net of non-reclaimable foreign tax withholdings on the ex-dividend date. Tax conventions between certain countries and the United States may reduce or eliminate such taxes.
E. Expenses
Expenses of the Trust, which are directly identifiable to a specific Fund, are applied to that Fund. Expenses which are not readily identifiable to a specific Fund are allocated in such a manner as deemed equitable, taking into consideration the nature and type of expense and the relative net assets of each Fund.
Each Fund (except for NASDAQ Internet Portfolio) is responsible for all of its expenses, including the investment advisory fees, costs of transfer agency, custody, fund administration, legal, audit and other services, interest, taxes, brokerage commissions and other expenses connected with executions of portfolio transactions, any distribution fees or expenses and extraordinary expenses.
The NASDAQ Internet Portfolio has agreed to pay an annual unitary management fee to Invesco PowerShares Capital Management LLC (the "Adviser"). The Adviser has agreed to pay for substantially all expenses of the NASDAQ Internet Portfolio, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for advisory fees, distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses.
F. Dividends and Distributions to Shareholders
Each Fund declares and pays dividends from net investment income, if any, to its shareholders quarterly and records on ex-dividend date. Each Fund distributes net realized taxable capital gains, if any, generally annually in cash and records on ex-dividend date. Such distributions on a tax basis are determined in conformity with income tax regulations which may differ from GAAP. Distributions in excess of tax basis earnings and profits, if any, are reported in such Fund's financial statements as a tax return of capital at fiscal period-end.
63
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
G. Equalization
All Funds use the accounting practice of equalization. This accounting method is used to keep the continuing shareholder's per Share equity in undistributed net investment income from being affected by the continuous sales and redemptions of capital Shares. Equalization is calculated on a per Share basis whereby a portion of the proceeds from the sales and cost of repurchases of capital Shares is applied to undistributed net investment income. The amount of equalization is disclosed in the Statements of Changes in Net Assets as undistributed net investment income (loss) included in the price of capital Shares issued or redeemed. The distributions to shareholders of amounts so applied may be deemed to be a return of capital for tax purposes to the extent that such distributions exceed taxable income.
Note 3. Investment Advisory Agreement and Other Agreements
The Trust has entered into an Investment Advisory Agreement with the Adviser pursuant to which the Adviser has overall responsibility as the Funds' investment adviser for the selection and ongoing monitoring of the Funds' investments, managing the Funds' business affairs and providing certain clerical, bookkeeping and other administrative services. Each Fund (except for NASDAQ Internet Portfolio) has agreed to pay the Adviser an annual fee of 0.50% of the Fund's average daily net assets. The NASDAQ Internet Portfolio has agreed to pay the Adviser an annual unitary management fee of 0.60% of the Fund's average daily net assets and the Adviser has agreed to pay for substantially all expenses of the NASDAQ Internet Portfolio, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for advisory fees and distribution fees, if any, brokerage expenses, taxes, interest, litigation exp enses and other extraordinary expenses.
The Adviser has entered into an Amended and Restated Excess Expense Agreement (the "Excess Expense Agreement") with the Trust, pursuant to which the Adviser has agreed to waive fees and/or pay Fund expenses to the extent necessary to prevent the operating expenses of each Fund other than the NASDAQ Internet Portfolio (excluding interest expense, brokerage commissions and other trading expenses, sub-licensing fees, offering costs, taxes and extraordinary expenses) from exceeding 0.60% of the Fund's average daily net assets per year (the "Expense Cap"), at least until August 31, 2011. Offering costs excluded from the Expense Cap are: (a) initial legal fees pertaining to the Funds' Shares offered for sale; (b) initial Securities and Exchange Commission and state registration fees; and (c) initial fees paid to be listed on an exchange.
The Excess Expense Agreement provides that the expenses borne by the Adviser are subject to recapture by the Adviser for up to three years from the date the fee or expense was borne by the Adviser, but no recapture payment will be made by a Fund if it would result in the Fund exceeding its Expense Cap as specified above. The Excess Expense Agreement does not apply to the NASDAQ Internet Portfolio.
The net amount of fees waived and other expenses assumed by the Adviser and the amount of recapture paid to the Adviser pursuant to the Excess Expense Agreement are collectively referred to as "(Waivers) and/or Recapture." The net amounts of (Waivers) and/or Recapture for the fiscal year ended April 30, 2010 are shown on the Statements of Operations.
64
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
The amounts available for potential future recapture by the Adviser under the Excess Expense Agreement and the expiration schedule at April 30, 2010 are as follows:
Total Potential | Potential Recapture Amounts Expiring | ||||||||||||||||||
Recapture Amounts | 04/30/11 | 04/30/12 | 04/30/13 | ||||||||||||||||
Dynamic Basic Materials Sector Portfolio | $ | 278,289 | $ | 91,354 | $ | 97,823 | $ | 89,112 | |||||||||||
Dynamic Consumer Discretionary Sector Portfolio | 311,864 | 103,476 | 106,300 | 102,088 | |||||||||||||||
Dynamic Consumer Staples Sector Portfolio | 278,651 | 98,981 | 92,029 | 87,641 | |||||||||||||||
Dynamic Energy Sector Portfolio | 280,956 | 90,453 | 98,690 | 91,813 | |||||||||||||||
Dynamic Financial Sector Portfolio | 308,087 | 104,352 | 99,362 | 104,373 | |||||||||||||||
Dynamic Healthcare Sector Portfolio | 181,178 | 54,627 | 68,848 | 57,703 | |||||||||||||||
Dynamic Industrials Sector Portfolio | 259,885 | 88,624 | 82,709 | 88,552 | |||||||||||||||
Dynamic Technology Sector Portfolio | 267,206 | 89,766 | 90,118 | 87,322 | |||||||||||||||
Dynamic Telecommunications & Wireless Portfolio | 320,811 | 113,750 | 104,564 | 102,497 | |||||||||||||||
Dynamic Utilities Portfolio | 283,341 | 97,438 | 87,648 | 98,255 |
The Trust has entered into a Distribution Agreement with Invesco Distributors, Inc. (formerly, Invesco Aim Distributors, Inc.) (the "Distributor"), which serves as the distributor of Creation Units for each Fund. The Distributor does not maintain a secondary market in the Shares.
The Adviser has entered into a licensing agreement for each Fund with the following Licensors:
Fund | Licensor | ||||||
Dynamic Basic Materials Sector Portfolio | NYSE Arca | ||||||
Dynamic Consumer Discretionary Sector Portfolio | NYSE Arca | ||||||
Dynamic Consumer Staples Sector Portfolio | NYSE Arca | ||||||
Dynamic Energy Sector Portfolio | NYSE Arca | ||||||
Dynamic Financial Sector Portfolio | NYSE Arca | ||||||
Dynamic Healthcare Sector Portfolio | NYSE Arca | ||||||
Dynamic Industrials Sector Portfolio | NYSE Arca | ||||||
Dynamic Technology Sector Portfolio | NYSE Arca | ||||||
Dynamic Telecommunications & Wireless Portfolio | NYSE Arca | ||||||
Dynamic Utilities Portfolio | NYSE Arca | ||||||
NASDAQ Internet Portfolio | NASDAQ OMX Group, Inc. | ||||||
Each Underlying Index name trademark is owned by the respective Licensors. These trademarks have been licensed to the Adviser for use with the Funds. The Funds are not sponsored, endorsed, sold or promoted by the Licensors and the Licensors make no representation regarding the advisability of investing in any of these Funds.
The Trust has entered into a sub-licensing agreement under which the Funds (other than the NASDAQ Internet Portfolio) are required to pay the sub-licensing fees which are shown on the Statements of Operations.
65
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
The Trust has entered into service agreements whereby The Bank of New York Mellon, a wholly-owned subsidiary of The Bank of New York Mellon Corporation, serves as the administrator, custodian, fund accountant and transfer agent for each Fund.
Note 4. Additional Valuation Information
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, under current market conditions. GAAP establishes a hierarchy that prioritizes the inputs to valuation methods giving the highest priority to readily available unadjusted quoted prices in an active market for identical assets (Level 1) and the lowest priority to significant unobservable inputs (Level 3) generally when market prices are not readily available or are unreliable. Based on the valuation inputs, the securities or other investments are tiered into one of three levels. Changes in valuation methods may result in transfers in or out of an investment's assigned level:
Level 1 – Prices are determined using quoted prices in an active market for identical assets.
Level 2 – Prices are determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others.
Level 3 – Prices are determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in determining fair value of the securities or instruments and would be based on the best available information.
The following is a summary of the tiered valuation input levels, as of April 30, 2010. The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with investing in those securities. Because of the inherent uncertainties of valuation, the values reflected in the financial statements may materially differ from the value received upon actual sale of those investments.
Investment in Securities | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Dynamic Basic Materials Sector Portfolio | |||||||||||||||||||
Equity Securities | $ | 48,495,338 | $ | — | $ | — | $ | 48,495,338 | |||||||||||
Money Market Fund | 64,424 | — | — | 64,424 | |||||||||||||||
Total Investments | 48,559,762 | — | — | 48,559,762 | |||||||||||||||
Dynamic Consumer Discretionary Sector Portfolio | |||||||||||||||||||
Equity Securities | 21,338,324 | — | — | 21,338,324 | |||||||||||||||
Money Market Fund | 40,694 | — | — | 40,694 | |||||||||||||||
Total Investments | 21,379,018 | — | — | 21,379,018 |
66
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
Investment in Securities | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Dynamic Consumer Staples Sector Portfolio | |||||||||||||||||||
Equity Securities | $ | 38,763,029 | $ | — | $ | — | $ | 38,763,029 | |||||||||||
Money Market Fund | 25,895 | — | — | 25,895 | |||||||||||||||
Total Investments | 38,788,924 | — | — | 38,788,924 | |||||||||||||||
Dynamic Energy Sector Portfolio | |||||||||||||||||||
Equity Securities | 38,625,562 | — | — | 38,625,562 | |||||||||||||||
Money Market Fund | 59,967 | — | — | 59,967 | |||||||||||||||
Total Investments | 38,685,529 | — | — | 38,685,529 | |||||||||||||||
Dynamic Financial Sector Portfolio | |||||||||||||||||||
Equity Securities | 17,528,880 | — | — | 17,528,880 | |||||||||||||||
Money Market Fund | 47,491 | — | — | 47,491 | |||||||||||||||
Total Investments | 17,576,371 | — | — | 17,576,371 | |||||||||||||||
Dynamic Healthcare Sector Portfolio | |||||||||||||||||||
Equity Securities | 97,634,916 | — | — | 97,634,916 | |||||||||||||||
Money Market Fund | 26,276 | — | — | 26,276 | |||||||||||||||
Total Investments | 97,661,192 | — | — | 97,661,192 | |||||||||||||||
Dynamic Industrials Sector Portfolio | |||||||||||||||||||
Equity Securities | 32,768,789 | — | — | 32,768,789 | |||||||||||||||
Money Market Fund | 58,258 | — | — | 58,258 | |||||||||||||||
Total Investments | 32,827,047 | — | — | 32,827,047 | |||||||||||||||
Dynamic Technology Sector Portfolio | |||||||||||||||||||
Equity Securities | 38,974,502 | — | — | 38,974,502 | |||||||||||||||
Money Market Fund | 21,405 | — | — | 21,405 | |||||||||||||||
Total Investments | 38,995,907 | — | — | 38,995,907 | |||||||||||||||
Dynamic Telecommunications & Wireless Portfolio | |||||||||||||||||||
Equity Securities | 17,846,071 | — | — | 17,846,071 | |||||||||||||||
Money Market Fund | 5,097 | — | — | 5,097 | |||||||||||||||
Total Investments | 17,851,168 | — | — | 17,851,168 | |||||||||||||||
Dynamic Utilities Portfolio | |||||||||||||||||||
Equity Securities | 38,139,345 | — | — | 38,139,345 | |||||||||||||||
Money Market Fund | 47,548 | — | — | 47,548 | |||||||||||||||
Total Investments | 38,186,893 | — | — | 38,186,893 | |||||||||||||||
NASDAQ Internet Portfolio | |||||||||||||||||||
Equity Securities | 15,403,620 | — | — | 15,403,620 |
67
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
Note 5. Distributions to Shareholders and Tax Components of Net Assets
Tax Character of Distributions to Shareholders Paid During the Fiscal Years Ended April 30, 2010 and 2009:
2010 | 2009 | ||||||||||||||||||
Ordinary Income | Return of Capital | Ordinary Income | Return of Capital | ||||||||||||||||
Dynamic Basic Materials Sector Portfolio | $ | 372,907 | $ | — | $ | 463,180 | $ | — | |||||||||||
Dynamic Consumer Discretionary Sector Portfolio | 42,516 | — | 83,601 | 1,843 | |||||||||||||||
Dynamic Consumer Staples Sector Portfolio | 710,824 | — | 473,177 | — | |||||||||||||||
Dynamic Energy Sector Portfolio | 298,571 | — | 135,550 | — | |||||||||||||||
Dynamic Financial Sector Portfolio | 228,052 | — | 254,006 | — | |||||||||||||||
Dynamic Healthcare Sector Portfolio | 214,570 | 116,320 | — | — | |||||||||||||||
Dynamic Industrials Sector Portfolio | 585,231 | — | 413,638 | — | |||||||||||||||
Dynamic Technology Sector Portfolio | — | — | — | — | |||||||||||||||
Dynamic Telecommunications & Wireless Portfolio | 330,581 | — | 194,232 | — | |||||||||||||||
Dynamic Utilities Portfolio | 1,469,967 | — | 1,226,368 | — | |||||||||||||||
NASDAQ Internet Portfolio | — | — | — | 1,258 |
Tax Components of Net Assets at Fiscal Year-End:
Undistributed Ordinary Income | Temporary Book/Tax Differences | Net Unrealized Appreciation | Capital Loss Carryforward | Post-October* Deferrals | Shares of Beneficial Interest | Total Net Assets | |||||||||||||||||||||||||
Dynamic Basic Materials Sector Portfolio | $ | 61,343 | $ | (3,203 | ) | $ | 7,823,715 | $ | (8,524,230 | ) | $ | (631,187 | ) | $ | 49,790,593 | $ | 48,517,031 | ||||||||||||||
Dynamic Consumer Discretionary Sector Portfolio | 4,603 | (2,824 | ) | 3,248,021 | (3,239,712 | ) | (481,183 | ) | 21,816,087 | 21,344,992 | |||||||||||||||||||||
Dynamic Consumer Staples Sector Portfolio | 86,475 | (3,239 | ) | 3,962,570 | (6,726,887 | ) | (386,623 | ) | 41,839,605 | 38,771,901 | |||||||||||||||||||||
Dynamic Energy Sector Portfolio | 10,511 | (3,222 | ) | 5,843,431 | (7,626,791 | ) | (655,594 | ) | 41,102,613 | 38,670,948 | |||||||||||||||||||||
Dynamic Financial Sector Portfolio | 49,071 | (2,973 | ) | 2,461,274 | (6,850,805 | ) | (1,131,225 | ) | 23,013,976 | 17,539,318 | |||||||||||||||||||||
Dynamic Healthcare Sector Portfolio | — | (4,622 | ) | 17,040,142 | (38,863,014 | ) | (221,898 | ) | 119,647,156 | 97,597,764 | |||||||||||||||||||||
Dynamic Industrials Sector Portfolio | 41,964 | (3,672 | ) | 4,761,299 | (29,246,732 | ) | (1,435,014 | ) | 58,661,206 | 32,779,051 | |||||||||||||||||||||
Dynamic Technology Sector Portfolio | — | (3,327 | ) | 4,708,968 | (18,345,136 | ) | — | 52,581,462 | 38,941,967 | ||||||||||||||||||||||
Dynamic Telecommunications & Wireless Portfolio | 83,125 | (2,973 | ) | 2,061,349 | (10,585,262 | ) | (493,891 | ) | 26,785,598 | 17,847,946 | |||||||||||||||||||||
Dynamic Utilities Portfolio | 213,232 | (3,441 | ) | 1,506,864 | (9,807,708 | ) | (348,963 | ) | 46,578,792 | 38,138,776 | |||||||||||||||||||||
NASDAQ Internet Portfolio | — | — | 2,268,351 | (97,858 | ) | (78,986 | ) | 13,304,249 | 15,395,756 |
* Capital losses incurred after October 31 ("Post-October losses") within the taxable year are deemed to arise on the first business day of each Fund's next taxable year.
Capital loss carryforward is calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforward actually available for the Funds to utilize. The ability to utilize capital loss carryforward in the future may be limited under Internal Revenue Code rules and related regulations based on the results of future transactions.
68
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
The following Funds have capital loss carryforward amounts as of April 30, 2010, which expire on April 30 of each year listed below:
2015 | 2016 | 2017 | 2018 | Total* | |||||||||||||||||||
Dynamic Basic Materials Sector Portfolio | $ | — | $ | 205,528 | $ | 3,783,798 | $ | 4,534,904 | $ | 8,524,230 | |||||||||||||
Dynamic Consumer Discretionary Sector Portfolio** | — | 1,246,058 | 1,993,654 | — | 3,239,712 | ||||||||||||||||||
Dynamic Consumer Staples Sector Portfolio | — | 634,544 | 2,156,980 | 3,935,363 | 6,726,887 | ||||||||||||||||||
Dynamic Energy Sector Portfolio | — | 880,885 | 2,869,667 | 3,876,239 | 7,626,791 | ||||||||||||||||||
Dynamic Financial Sector Portfolio | — | 614,940 | 1,821,971 | 4,413,894 | 6,850,805 | ||||||||||||||||||
Dynamic Healthcare Sector Portfolio | — | 2,234,184 | 17,890,879 | 18,737,951 | 38,863,014 | ||||||||||||||||||
Dynamic Industrials Sector Portfolio | — | 1,476,057 | 6,525,387 | 21,245,288 | 29,246,732 | ||||||||||||||||||
Dynamic Technology Sector Portfolio | — | 2,465,875 | 8,220,697 | 7,658,564 | 18,345,136 | ||||||||||||||||||
Dynamic Telecommunications & Wireless Portfolio | 1,394,222 | 1,538,650 | 3,596,484 | 4,055,906 | 10,585,262 | ||||||||||||||||||
Dynamic Utilities Portfolio | 430,964 | 2,124,736 | 1,366,073 | 5,885,935 | 9,807,708 | ||||||||||||||||||
NASDAQ Internet Portfolio | — | — | 2,112 | 95,746 | 97,858 |
* Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code.
** During the year ended April 30, 2010, the Dynamic Consumer Discretionary Sector Portfolio utilized capital loss carryforwards of $3,603 to offset realized gains.
Note 6. Investment Transactions
For the fiscal year ended April 30, 2010, the cost of securities purchased and proceeds from sales of securities, excluding short-term securities, money market funds and in-kind transactions, were as follows:
Purchases | Sales | ||||||||||
Dynamic Basic Materials Sector Portfolio | $ | 16,875,356 | $ | 15,391,795 | |||||||
Dynamic Consumer Discretionary Sector Portfolio | 13,240,821 | 13,381,887 | |||||||||
Dynamic Consumer Staples Sector Portfolio | 26,373,698 | 26,669,327 | |||||||||
Dynamic Energy Sector Portfolio | 25,414,341 | 20,569,477 | |||||||||
Dynamic Financial Sector Portfolio | 17,202,904 | 16,539,610 | |||||||||
Dynamic Healthcare Sector Portfolio | 74,243,891 | 68,842,372 | |||||||||
Dynamic Industrials Sector Portfolio | 61,609,687 | 66,055,542 | |||||||||
Dynamic Technology Sector Portfolio | 27,291,633 | 24,482,752 | |||||||||
Dynamic Telecommunications & Wireless Portfolio | 7,624,658 | 7,524,938 | |||||||||
Dynamic Utilities Portfolio | 25,435,609 | 26,051,622 | |||||||||
NASDAQ Internet Portfolio | 2,157,275 | 2,141,476 |
For the fiscal year ended April 30, 2010, in-kind transactions associated with creations and redemptions were as follows:
Securities Received | Securities Delivered | ||||||||||
Dynamic Basic Materials Sector Portfolio | $ | 34,501,676 | $ | 19,329,653 | |||||||
Dynamic Consumer Discretionary Sector Portfolio | 23,235,221 | 20,577,552 | |||||||||
Dynamic Consumer Staples Sector Portfolio | 24,091,519 | 32,542,147 | |||||||||
Dynamic Energy Sector Portfolio | 38,513,304 | 43,232,084 | |||||||||
Dynamic Financial Sector Portfolio | 15,248,626 | 16,722,192 | |||||||||
Dynamic Healthcare Sector Portfolio | 70,201,215 | 80,878,111 | |||||||||
Dynamic Industrials Sector Portfolio | 106,762,466 | 148,039,264 |
69
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
Securities Received | Securities Delivered | ||||||||||
Dynamic Technology Sector Portfolio | $ | 45,982,310 | $ | 46,673,705 | |||||||
Dynamic Telecommunications & Wireless Portfolio | 14,860,766 | 16,526,312 | |||||||||
Dynamic Utilities Portfolio | 36,710,974 | 44,075,488 | |||||||||
NASDAQ Internet Portfolio | 12,718,476 | 2,601,003 |
Gains and (losses) on in-kind transactions are generally not considered taxable gains/(losses) for Federal income tax purposes.
At April 30, 2010, the aggregate cost and the net unrealized appreciation of investments for tax purposes were as follows:
Cost | Net Unrealized Appreciation | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | ||||||||||||||||
Dynamic Basic Materials Sector Portfolio | $ | 40,736,047 | $ | 7,823,715 | $ | 8,226,466 | $ | (402,751 | ) | ||||||||||
Dynamic Consumer Discretionary Sector Portfolio | 18,130,997 | 3,248,021 | 3,323,223 | (75,202 | ) | ||||||||||||||
Dynamic Consumer Staples Sector Portfolio | 34,826,354 | 3,962,570 | 4,294,908 | (332,338 | ) | ||||||||||||||
Dynamic Energy Sector Portfolio | 32,842,098 | 5,843,431 | 6,204,770 | (361,339 | ) | ||||||||||||||
Dynamic Financial Sector Portfolio | 15,115,097 | 2,461,274 | 2,510,780 | (49,506 | ) | ||||||||||||||
Dynamic Healthcare Sector Portfolio | 80,621,050 | 17,040,142 | 17,870,554 | (830,412 | ) | ||||||||||||||
Dynamic Industrials Sector Portfolio | 28,065,748 | 4,761,299 | 5,114,058 | (352,759 | ) | ||||||||||||||
Dynamic Technology Sector Portfolio | 34,286,939 | 4,708,968 | 5,147,537 | (438,569 | ) | ||||||||||||||
Dynamic Telecommunications & Wireless Portfolio | 15,789,819 | 2,061,349 | 2,308,475 | (247,126 | ) | ||||||||||||||
Dynamic Utilities Portfolio | 36,680,029 | 1,506,864 | 2,579,160 | (1,072,296 | ) | ||||||||||||||
NASDAQ Internet Portfolio | 13,135,269 | 2,268,351 | 2,570,684 | (302,333 | ) |
Note 7. Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of investment activity, on April 30, 2010, amounts were reclassified between undistributed net investment income (loss), undistributed net realized gain (loss) and Shares of beneficial interest. These reclassifications had no effect on the net assets of each Fund. For the fiscal year ended April, 30, 2010, the reclassifications were as follow:
Undistributed Net Investment Income (Loss) | Undistributed Net Realized Gain (Loss) | Shares of Beneficial Interest | |||||||||||||
Dynamic Basic Materials Sector Portfolio | $ | (46,497 | ) | $ | (4,302,307 | ) | $ | 4,348,804 | |||||||
Dynamic Consumer Discretionary Sector Portfolio | 12,574 | (3,921,704 | ) | 3,909,130 | |||||||||||
Dynamic Consumer Staples Sector Portfolio | 93,966 | (5,557,860 | ) | 5,463,894 | |||||||||||
Dynamic Energy Sector Portfolio | 20,396 | (6,331,323 | ) | 6,310,927 | |||||||||||
Dynamic Financial Sector Portfolio | 1,004 | (1,295,359 | ) | 1,294,355 | |||||||||||
Dynamic Healthcare Sector Portfolio | 112,627 | (13,533,010 | ) | 13,420,383 | |||||||||||
Dynamic Industrials Sector Portfolio | 152,197 | (19,040,503 | ) | 18,888,306 |
70
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2010
Undistributed Net Investment Income (Loss) | Undistributed Net Realized Gain (Loss) | Shares of Beneficial Interest | |||||||||||||
Dynamic Technology Sector Portfolio | $ | 94,785 | $ | (10,384,373 | ) | $ | 10,289,588 | ||||||||
Dynamic Telecommunications & Wireless Portfolio | 20,416 | (2,745,105 | ) | 2,724,689 | |||||||||||
Dynamic Utilities Portfolio | 377,901 | (1,117,110 | ) | 739,209 | |||||||||||
NASDAQ Internet Portfolio | 94,690 | (716,582 | ) | 621,892 |
Note 8. Trustees' Fees
The Funds compensate each Trustee who is not an employee of the Adviser or its affiliates. With respect to the NASDAQ Internet Portfolio, the Adviser, as result of the unitary management fee, pays for such compensation. The "Interested" Trustees of the Trust do not receive any Trustees' fees.
The Trust has adopted a deferred compensation plan (the "Plan"). Under the Plan, a Trustee who is not an "interested person" (as defined in the 1940 Act) (an "Independent Trustee") and has executed a Deferred Fee Agreement (a "Participating Trustee") may defer receipt of all or a portion of his compensation ("Deferral Fees"). Such Deferral Fees are deemed to be invested in selected PowerShares Funds. The Deferral Fees payable to the Participating Trustee are valued as of the date such Deferral Fees would have been paid to the Participating Trustee. The value increases with contributions or with increases in the value of the Shares selected, and the value decreases with distributions or with declines in the value of the Shares selected.
Note 9. Capital
Shares are created and redeemed by the Trust only in Creation Unit size aggregations of 50,000 Shares. Only Authorized Participants are permitted to purchase or redeem Creation Units from the Funds. Such transactions are generally permitted on an in-kind basis, with a balancing cash component to equate the transaction to the NAV per Share of each Fund of the Trust on the transaction date. Cash may be substituted equivalent to the value of certain securities generally when they are not available in sufficient quantity for delivery, not eligible for trading by the Authorized Participant or as a result of other market circumstances.
Note 10. Indemnifications
Under the Trust's organizational documents, its officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Trust. Each Independent Trustee is also indemnified against certain liabilities arising out of the performance of his duties to the Trust pursuant to an Indemnification Agreement between the Independent Trustee and the Trust. Additionally, in the normal course of business, the Trust enters into contracts with service providers that contain general indemnification clauses. The Trust's maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Trust that have not yet occurred. However, based on experience, the Trust believes the risk of loss to be remote.
71
Report of Independent Registered Public Accounting Firm
To the Board of Trustees and Shareholders of PowerShares Exchange-Traded Fund Trust:
In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of each of the portfolios indicated in Note 1 of the financial statements (each a portfolio of PowerShares Exchange-Traded Fund Trust, hereafter referred to as the "Trust") at April 30, 2010, and the results of each of their operations, the changes in each of their net assets, and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Trust's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at April 30, 2010 by correspondence with the custodian and brokers, and the application of alternative auditing procedures where securities purchased had not been received, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
New York, New York
June 28, 2010
72
Tax Information
Form 1099-DIV, Form 1042-S and other year-end tax information provide shareholders with actual calendar year amounts that should be included in their tax returns. Shareholders should consult their tax advisors.
The following distribution information is being provided as required by the Internal Revenue Code or to meet a specific state's requirement.
Each Fund designates the following amounts or, if subsequently determined to be different, the maximum amount allowable for its fiscal year ended April 30, 2010:
Federal Income Tax Information
Qualified dividend income* | Corporate dividends- received deduction* | ||||||||||
Dynamic Basic Materials Sector Portfolio | 100 | % | 100 | % | |||||||
Dynamic Consumer Discretionary Sector Portfolio | 100 | % | 100 | % | |||||||
Dynamic Consumer Staples Sector Portfolio | 100 | % | 100 | % | |||||||
Dynamic Energy Sector Portfolio | 100 | % | 100 | % | |||||||
Dynamic Financial Sector Portfolio | 100 | % | 100 | % | |||||||
Dynamic Healthcare Sector Portfolio | 100 | % | 100 | % | |||||||
Dynamic Industrials Sector Portfolio | 100 | % | 100 | % | |||||||
Dynamic Technology Sector Portfolio | 0 | % | 0 | % | |||||||
Dynamic Telecommunications & Wireless Portfolio | 100 | % | 100 | % | |||||||
Dynamic Utilities Portfolio | 100 | % | 100 | % | |||||||
NASDAQ Internet Portfolio | 0 | % | 0 | % |
* The above percentages are based on ordinary income dividends paid to shareholders during the Fund's fiscal year.
73
Proxy Results
A Special Meeting of Shareholders was held on March 22, 2010 to elect seven individuals to the Board of Trustees of PowerShares Exchange-Traded Fund Trust.
The results of the voting on the above matter were as follows:
Trustees | Votes For | Withheld/ Abstentions* | |||||||||
Ronn R. Bagge | 426,624,761 | 8,241,402 | |||||||||
Todd J. Barre | 426,876,044 | 7,990,119 | |||||||||
H. Bruce Bond | 426,681,223 | 8,184,940 | |||||||||
Kevin M. Carome | 425,386,415 | 9,479,748 | |||||||||
Marc M. Kole | 426,529,715 | 8,336,448 | |||||||||
Philip M. Nussbaum | 426,531,618 | 8,334,545 | |||||||||
Donald H. Wilson | 426,691,769 | 8,174,394 |
* Includes Non-Votes.
74
Trustees and Officers
The Independent Trustees, the Trustees who are affiliated with the Adviser (the "Interested Trustees") and the executive officers of the Trust, their term of office and length of time served, their principal business occupations during at least the past five years, the number of portfolios in the Fund Complex overseen by each Trustee and the other directorships, if any, held by a Trustee, are shown below.
The Trustees and officers information is current as of April 30, 2010.
Name, Address and Age of Independent Trustees | Position(s) Held with Trust | Term of Office and Length of Time Served* | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Independent Trustees | Other Directorships Held by Independent Trustees | ||||||||||||||||||
Ronn R. Bagge (52) YQA Capital Management LLC 1755 S. Naperville Rd., Suite 100 Wheaton, IL 60187 | Trustee | Since 2003 | Founder and Principal, YQA Capital Management LLC (1998-Present); formerly Owner/CEO of Electronic Dynamic Balancing Co., Inc. (high-speed rotating equipment service provider) | 111 | None | ||||||||||||||||||
Todd J. Barre (52) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Trustee | Since 2010 | Vice President and Senior Investment Strategist (2001-2008), Director of Open Architecture and Trading (2007-2008), Head of Fundamental Research (2004-2007) and Vice President and Senior Fixed Income Strategist (1994-2001), BMO Financial Group/Harris Private Bank | 111 | None | ||||||||||||||||||
* This is the date the Trustee began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected.
** Fund Complex includes all open-end funds (including all of their portfolios) advised by the Adviser. At April 30, 2010, the Fund Complex consisted of the Trust's 62 portfolios and three other exchange-traded fund trusts with 49 portfolios advised by the Adviser.
75
Trustees and Officers (Continued)
Name, Address and Age of Independent Trustees | Position(s) Held with Trust | Term of Office and Length of Time Served* | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Independent Trustees | Other Directorships Held by Independent Trustees | ||||||||||||||||||
Marc M. Kole (49) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Trustee | Since 2006 | Chief Financial Officer, Hope Network (social services) (2008-Present); formerly Assistant Vice President and Controller, Priority Health (health insurance) (2005-2008); Senior Vice President of Finance, United Healthcare (2004-2005); Senior Vice President of Finance, Oxford Health Plans (2000-2004) | 111 | None | ||||||||||||||||||
Philip M. Nussbaum (48) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Trustee | Since 2003 | Chairman, Performance Trust Capital Partners (formerly Betzold, Berg, Nussbaum & Heitman, Inc.) (2004-Present); formerly Managing Director, Communication Institute (2002-2003); Executive Vice President of Finance, Betzold, Berg, Nussbaum & Heitman, Inc. (1994-1999) | 111 | None | ||||||||||||||||||
* This is the date the Trustee began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected.
** Fund Complex includes all open-end funds (including all of their portfolios) advised by the Adviser. At April 30, 2010, the Fund Complex consisted of the Trust's 62 portfolios and three other exchange-traded fund trusts with 49 portfolios advised by the Adviser.
76
Trustees and Officers (Continued)
Name, Address and Age of Independent Trustees | Position(s) Held with Trust | Term of Office and Length of Time Served* | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Independent Trustees | Other Directorships Held by Independent Trustees | ||||||||||||||||||
Donald H. Wilson (50) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Trustee | Since 2006 | Chairman and Chief Executive Officer, Stone Pillar Advisers, Ltd. (2010-Present); formerly, Chief Operating Officer, AMCORE Financial, Inc. (bank holding company) (2007-2009); Executive Vice President and Chief Financial Officer, AMCORE Financial, Inc. (2006-2007); Senior Vice President and Treasurer, Marshall & Ilsley Corp. (bank holding company) (1995-2006) | 111 | None | ||||||||||||||||||
* This is the date the Trustee began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected.
** Fund Complex includes all open-end funds (including all of their portfolios) advised by the Adviser. At April 30, 2010, the Fund Complex consisted of the Trust's 62 portfolios and three other exchange-traded fund trusts with 49 portfolios advised by the Adviser.
77
Trustees and Officers (Continued)
Name, Address and Age of Interested Trustees | Position(s) Held with Trust | Term of Office and Length of Time Served* | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Fund Complex Overseen by Interested Trustees | Other Directorships Held by Interested Trustees | ||||||||||||||||||
H. Bruce Bond (46) Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Chairman of the Board and Trustee | Since 2003 | Chairman, Invesco Power-Shares Capital Management LLC (2009-Present); formerly, Managing Director, Invesco PowerShares Capital Management LLC (2002-2009); Manager, Nuveen Investments (1998-2002) | 111 | None | ||||||||||||||||||
Kevin M. Carome (53) Invesco Ltd. Two Peachtree Pointe 1555 Peachtree St., N.E., Suite 1800 Atlanta, GA 30309 | Trustee | Since 2010 | Senior Managing Director and General Counsel, Invesco Ltd. (2006-Present); formerly, Senior Vice President and General Counsel, Invesco Advisors, Inc. (2003-2005); Senior Vice President and General Counsel, Liberty Financial Companies, Inc. (2000-2001); General Counsel of certain investment management subsidiaries of Liberty Financial Companies, Inc. (1998-2000); Associate General Counsel, Liberty Financial Companies, Inc. (1993-1998); Associate, Ropes & Gray LLP | 111 | None | ||||||||||||||||||
* This is the date the Interested Trustee began serving the Trust. Each Trustee serves an indefinite term, until his successor is elected.
** Fund Complex includes all open-end funds (including all of their portfolios) advised by the Adviser. At April 30, 2010, the Fund Complex consisted of the Trust's 62 portfolios and three other exchange-traded fund trusts with 49 portfolios advised by the Adviser.
78
Trustees and Officers (Continued)
Name, Address and Age of Executive Officer | Position(s) Held with Trust | Length of Time Served* | Principal Occupation(s) During Past 5 Years | ||||||||||||
Andrew Schlossberg (35) Invesco Management Group, Inc. 11 Greenway Plaza Suite 100 Houston, Texas 77046 | President | Since 2009 | Managing Director, U.S. head of business strategy and chief marketing officer for Invesco Ltd. in the United States (2008-Present); formerly, Mr. Schlossberg served in multiple roles within Invesco, including head of corporate development, as well as global leadership roles in strategy and product development in the company's North American Institutional and Retirement divisions (2002-2007) | ||||||||||||
Bruce T. Duncan (55) Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Treasurer and Secretary | Treasurer since 2006; Secretary since 2008 | Senior Vice President of Finance, Invesco PowerShares Capital Management LLC (2005-Present); formerly Private Practice Attorney (2000-2005); Vice President of Investor Relations, The ServiceMaster Company (1994-2000); Vice President of Taxes, The ServiceMaster Company (1990-2000) | ||||||||||||
Benjamin Fulton (48) Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Vice President | Since 2009 | Executive Vice President – Global Product Development, Invesco PowerShares Capital Management LLC (2005-Present); formerly, principal of Clermont Consulting, a consulting firm focused on the creation and development of retail investment products (2003-2005); President and a founding partner of Claymore Securities, a financial services firm in the Chicago land area (2001-2003); Managing Director of Structured Investments at Nuveen Investments (1998-2001) | ||||||||||||
Peter Hubbard (28) Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Vice President | Since 2009 | Vice President and Director of Portfolio Management – Invesco PowerShares Capital Management LLC (2008-Present); formerly, Research Analyst, Invesco PowerShares Capital Management LLC (2005-2007); Research Analyst and Trader, Ritchie Capital, a hedge fund operator (2003-2005) | ||||||||||||
* This is the period for which the Officers began serving the Trust. Each Officer serves a one year term, until his successor is elected.
79
Trustees and Officers (Continued)
Name, Address and Age of Executive Officer | Position(s) Held with Trust | Length of Time Served* | Principal Occupation(s) During Past 5 Years | ||||||||||||
David Warren (52) Invesco Trimark Ltd. 5140 Yonge Street Suite 900 Toronto, Ontario M2N 6X7 | Vice President | Since 2009 | Director, Executive Vice President and Chief Financial Officer, Invesco Trimark Ltd. and Chief Administrative Officer, North American Retail, Invesco Ltd (2007-Present); formerly, Director, Executive Vice President and Chief Financial Officer, Invesco Trimark Ltd. (2000-2006) | ||||||||||||
Todd Spillane (51) Invesco PowerShares Capital Management LLC 11 Greenway Plaza Suite 100 Houston, Texas 77046 | Chief Compliance Officer | Since 2010 | Senior Vice President, Invesco Management Group, Inc.; Chief Compliance Officer, INVESCO Private Capital Investments, Inc. (holding company), Invesco Private Capital, Inc. (registered investment adviser) and Invesco Senior Secured Management, Inc. (registered investment adviser); Chief Compliance Officer and Senior Vice President, Invesco Advisers, Inc. (formerly Invesco Institutional, (N.A.), Inc. – registered investment adviser) and Vice President, Invesco Distributors, Inc. and Invesco Investment Services, Inc.; formerly: Chief Compliance Officer, Invesco Global Asset Management (N.A.), Inc. – registered investment adviser) and Invesco Advisers, Inc. (formerly Invesco Institutional (N.A.), Inc.) (registered investment adviser); Senior Vice President and Chief Compliance Officer, Invesco Advisors, Inc., Invesco Capital Management, Inc. and Invesco Private Asset Management, Inc.; Vice President, Invesco Capital Management, Inc. and F und Management Company | ||||||||||||
Availability of Additional Information About the Trustees
The Statement of Additional Information includes additional information about the Trustees and is available, without charge, upon request at 800.337.4246.
* This is the period for which the Officers began serving the Trust. Each Officer serves a one year term, until his successor is elected.
80
Board Considerations Regarding Continuation of Investment Advisory Agreement
At a meeting held on April 15, 2010, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust (the "Trust"), including the Independent Trustees, unanimously approved the continuation of the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the "Adviser") and the Trust for the following 57 series (each, a "Fund" and collectively, the "Funds"):
PowerShares Dynamic Market Portfolio
PowerShares Dynamic OTC Portfolio
PowerShares Golden Dragon Halter USX China Portfolio
PowerShares High Yield Equity Dividend AchieversTM Portfolio
PowerShares WilderHill Clean Energy Portfolio
PowerShares Dynamic Large Cap Growth Portfolio
PowerShares Dynamic Large Cap Value Portfolio
PowerShares Dynamic Mid Cap Growth Portfolio
PowerShares Dynamic Mid Cap Value Portfolio
PowerShares Dynamic Small Cap Growth Portfolio
PowerShares Dynamic Small Cap Value Portfolio
PowerShares Dynamic Biotechnology & Genome Portfolio
PowerShares Dynamic Food & Beverage Portfolio
PowerShares Dynamic Leisure and Entertainment Portfolio
PowerShares Dynamic Media Portfolio
PowerShares Dynamic Networking Portfolio
PowerShares Dynamic Pharmaceuticals Portfolio
PowerShares Dynamic Semiconductors Portfolio
PowerShares Dynamic Software Portfolio
PowerShares Zacks Micro Cap Portfolio
PowerShares Aerospace & Defense Portfolio
PowerShares Dynamic Telecommunications & Wireless Portfolio
PowerShares Value Line Timeliness Select Portfolio
PowerShares Dividend AchieversTM Portfolio
PowerShares International Dividend AchieversTM Portfolio
PowerShares Zacks Small Cap Portfolio
PowerShares Dynamic Building and Construction Portfolio
PowerShares Dynamic Energy Exploration and Production Portfolio
PowerShares Dynamic Insurance Portfolio
PowerShares Dynamic Oil and Gas Services Portfolio
PowerShares Dynamic Retail Portfolio
PowerShares Dynamic Utilities Portfolio
PowerShares Lux Nanotech Portfolio
PowerShares FTSE RAFI US 1000 Portfolio
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio
PowerShares Water Resources Portfolio
PowerShares Dynamic Energy Sector Portfolio
PowerShares Dynamic Financial Sector Portfolio
PowerShares Dynamic Healthcare Sector Portfolio
PowerShares Dynamic Industrials Sector Portfolio
PowerShares Dynamic Large Cap Portfolio
PowerShares Dynamic MagniQuant Portfolio
PowerShares Dynamic Mid Cap Portfolio
PowerShares Dynamic Small Cap Portfolio
PowerShares Dynamic Technology Sector Portfolio
PowerShares Buyback Achievers(TM) Portfolio
PowerShares Cleantech Portfolio
PowerShares Dynamic Banking Portfolio
PowerShares Dynamic Basic Materials Sector Portfolio
PowerShares Dynamic Consumer Discretionary Sector Portfolio
PowerShares Dynamic Consumer Staples Sector Portfolio
PowerShares Dynamic Healthcare Services Portfolio
PowerShares Financial Preferred Portfolio
PowerShares Global Listed Private Equity Portfolio
PowerShares DWA Technical Leaders Portfolio
PowerShares Value Line Industry Rotation Portfolio
PowerShares WilderHill Progressive Energy Portfolio
81
Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)
The Trustees reviewed information from the Adviser describing: (i) the nature, extent and quality of services provided, (ii) the investment performance of the Funds and the Adviser, (iii) the costs of services provided and estimated profits realized by the Adviser, (iv) the extent to which economies of scale are realized as the Funds grow, (v) whether fee levels reflect any possible economies of scale for the benefit of Fund shareholders, (vi) comparisons of services rendered and amounts paid to other registered investment companies and (vii) any benefits realized by the Adviser from its relationship with each Fund. Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the continuation of the Investment Advisory Agreement for each Fund. No single factor was determinative in the Board's analysis.
Nature, Extent and Quality of Services. In evaluating the nature, extent and quality of the Adviser's services, the Trustees reviewed information concerning the functions performed by the Adviser for the Funds, information describing the Adviser's current organization and projected staffing, including operations assistance provided by the Adviser's parent organization, Invesco Ltd., and the background and experience of the persons responsible for the day-to-day management of the Funds. The Trustees reviewed matters related to the Adviser's execution of portfolio transactions on behalf of the Funds. The Trustees also reviewed information on the performance of the Funds and the performance of their underlying indices through December 31, 2009. The Trustees also reviewed reports on the correlation and tracking error between the underlying index and each Fund's performance, including a report of Ibbotson Associates, a consultant to the Independent Trustees, that analyzed the reasons for tracking error for certain PowerShares funds, as well as the Adviser's analysis of the tracking error between each Fund and its underlying index. The Trustees noted that each Fund's correlation was within the targeted range set forth in the Trust's registration statement and that, for each Fund other than PowerShares Global Listed Private Equity Portfolio, the tracking error was within the targeted range set forth in the Trust's registration statement. The Trustees reviewed the reasons for PowerShares Global Listed Private Equity Portfolio's tracking error. The Trustees concluded that each Fund was correlated to its underlying index and that the tracking error for each Fund was within an acceptable range given that Fund's particular circumstances.
The Trustees also considered the services provided by the Adviser in its oversight of the Funds' administrator, custodian and transfer agent. They noted the significant amount of time and effort that had been devoted to this oversight function.
Based on their review, the Trustees concluded that the nature, extent and quality of services provided by the Adviser to the Funds under the Investment Advisory Agreement were appropriate and reasonable.
Fees, Expenses and Profitability. The Trustees reviewed and discussed the information provided by the Adviser on each Fund's expense ratio and advisory fee, as compared to information compiled by the Adviser from Lipper Inc. databases on the expense ratios of comparable exchange-traded funds ("ETFs"), open-end (non-ETF) index funds and open-end actively-managed funds. The Trustees noted that the annual advisory fee charged to each Fund is:
• 0.50% of the Fund's average net assets, for each Fund other than PowerShares High Yield Equity Dividend Achievers(TM) Portfolio, PowerShares Dividend Achievers(TM) Portfolio, PowerShares International Dividend Achievers(TM) Portfolio, PowerShares FTSE RAFI US 1000 Portfolio and PowerShares FTSE RAFI US 1500 Small-Mid Portfolio;
82
Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)
• 0.40% of the Fund's average net assets, for each of PowerShares High Yield Equity Dividend Achievers(TM) Portfolio, PowerShares Dividend Achievers(TM) Portfolio and PowerShares International Dividend Achievers(TM) Portfolio; and
• 0.29% of the Fund's average net assets, for each of PowerShares FTSE RAFI US 1000 Portfolio and PowerShares FTSE RAFI US 1500 Small-Mid Portfolio.
The Trustees also noted that the Adviser has agreed to waive a portion of its advisory fee and/or pay expenses (an "Expense Cap") to the extent necessary to prevent the annual operating expenses of each Fund from exceeding the percentage of that Fund's average daily net assets, at least until August 31, 2011, as set forth below:
• 0.60%, excluding interest expenses, brokerage commissions and other trading expenses, taxes and extraordinary expenses, for each of PowerShares Dynamic OTC Portfolio and PowerShares Dynamic Market Portfolio;
• 0.50%, excluding interest expenses, licensing fees, offering costs, brokerage commissions and other trading expenses, taxes and extraordinary expenses, for each of PowerShares High Yield Equity Dividend Achievers(TM) Portfolio, PowerShares Dividend Achievers(TM) Portfolio and PowerShares International Dividend Achievers(TM) Portfolio;
• 0.39%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes and extraordinary expenses, for each of PowerShares FTSE RAFI US 1000 Portfolio and PowerShares FTSE RAFI US 1500 Small-Mid Portfolio; and
• 0.60%, excluding interest expenses, licensing fees, offering costs, brokerage commissions and other trading expenses, taxes and extraordinary expenses, for each other Fund.
The Trustees noted that the Adviser represented that it does not provide investment advisory services to any clients other than the Funds and other ETFs overseen by the Board. The Trustees noted that each Fund's advisory fee was:
• higher than the median advisory fee of its ETF peer funds (except for the advisory fee of each of PowerShares Financial Preferred Portfolio, PowerShares Golden Dragon Halter USX China Portfolio and PowerShares International Dividend Achievers(TM) Portfolio, which was lower than the median advisory fee of its ETF peer funds); and
• higher than the median advisory fee of its open-end index peer funds (except for the advisory fee of each of PowerShares DWA Technical Leaders Portfolio, PowerShares Dynamic Banking Portfolio, PowerShares Dynamic Financial Sector Portfolio, PowerShares Dynamic Insurance Portfolio, PowerShares Dynamic Mid Cap Growth Portfolio, PowerShares Dynamic Mid Cap Value Portfolio, PowerShares Dynamic OTC Portfolio, PowerShares Financial Preferred Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Golden Dragon Halter USX China Portfolio, PowerShares International Dividend Achievers(TM) Portfolio, PowerShares Value Line Industry Rotation Portfolio and PowerShares Value Line Timeliness Select Portfolio, which was equal to or lower than the median advisory fee of its open-end index peer funds, and there was no comparable data for PowerShares Dynamic Basic Materials Sector Portfolio); but
• lower than the median advisory fee of its open-end actively-managed peer funds.
83
Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)
The Trustees determined that the advisory fees were reasonable, noting the complexity of the indices, which generally require more frequent rebalancing of the portfolios, the distinguishing factors of the Funds, and the higher administrative, operational and management oversight costs for the Adviser. With respect to the Funds' expense ratios, the Trustees noted that the net expense ratio for each Fund was:
• higher than the median expense ratio of its ETF peer funds (except for the net expense ratio of each of PowerShares Dynamic OTC Portfolio, PowerShares FTSE RAFI US 1000 Portfolio and PowerShares International Dividend AchieversTM Portfolio, which was less than the median expense ratio of its ETF peer funds); and
• higher than the median expense ratio of its open-end index peer funds (except for the net expense ratio of each of PowerShares Dynamic Banking Portfolio, PowerShares Dynamic Financial Sector Portfolio, PowerShares Dynamic Insurance Portfolio, PowerShares Dynamic Mid Cap Growth Portfolio, PowerShares Dynamic Mid Cap Value Portfolio, PowerShares Dynamic Oil and Gas Services Portfolio, PowerShares Dynamic Small Cap Growth Portfolio, PowerShares Dynamic Telecommunications & Wireless Portfolio, PowerShares Dynamic Utilities Portfolio, PowerShares Financial Preferred Portfolio and PowerShares Global Listed Private Equity Portfolio, which was lower than the median expense ratio of its open-end index peer funds, and there was no comparable data for PowerShares Dynamic Basic Materials Sector Portfolio); but
• lower than the median expense ratio of its open-end actively-managed peer funds.
The Trustees noted that a significant component of the non-advisory fee expenses was the license fees paid by the Funds.
The Board concluded that the advisory fee and expense ratio of each Fund (giving effect to the Fund's Expense Cap) were reasonable and appropriate in light of the services provided.
In conjunction with their review of fees, the Trustees also considered information provided by the Adviser on the revenues received by the Adviser under the Investment Advisory Agreement for each Fund, as well as the fees waived and expenses reimbursed by the Adviser for the Funds. The Trustees reviewed information provided by the Adviser on its profitability as well as any profits or losses realized by the Adviser from its relationship to each Fund. The Trustees concluded that the estimated profitability to the Adviser of the advisory services provided to any of the Funds was not unreasonable.
Economies of Scale and Whether Fee Levels Reflect These Economies of Scale. The Trustees reviewed the information provided by the Adviser as to the extent to which economies of scale are realized as each Fund grows and whether fee levels reflect economies of scale for the benefit of shareholders. The Trustees reviewed each Fund's asset size, expense ratio and expense limitation agreed to by the Adviser. The Trustees noted that, for Funds whose expenses are higher than their respective Expense Caps, any reduction in that Fund's expenses would be enjoyed by the Adviser, but that Fund shareholders benefit from the lower expense ratio as a result of the Fund's Expense Cap. The Trustees also noted that the Excess Expense Agreement with the Trust provides that the Adviser is entitled to be reimbursed by each Fund, other than PowerShares Dynamic Market Portf olio and PowerShares Dynamic OTC Portfolio, for fees waived or expenses absorbed pursuant to the Expense Cap for a period of three years from the date the fee or expense was incurred, provided that no reimbursement would be made that would result in a Fund exceeding its Expense Cap. The Trustees considered whether the advisory fee rate for each Fund was reasonable in
84
Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)
relation to the asset size of that Fund, and concluded that the flat advisory fee was reasonable and appropriate, noting the Fund expenses the Adviser has borne as a result of the Expense Cap.
The Trustees noted that the Adviser had not identified any further benefits that it derived from its relationship with the Funds and had noted that it does not have any soft-dollar arrangements.
Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the continuation of the Investment Advisory Agreement for each Fund. No single factor was determinative in the Board's analysis.
85
Board Considerations Regarding Continuation of Investment Advisory Agreement
At a meeting held on April 15, 2010, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust (the "Trust"), including the Independent Trustees, unanimously approved the continuation of the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the "Adviser") and the Trust for the following five series (each, a "Fund" and collectively, the "Funds"):
PowerShares FTSE NASDAQ Small Cap Portfolio
PowerShares NASDAQ Internet Portfolio
PowerShares NASDAQ-100 BuyWrite Portfolio
PowerShares NXQ Portfolio
PowerShares S&P 500 BuyWrite Portfolio
The Trustees reviewed information from the Adviser describing: (i) the nature, extent and quality of services provided, (ii) the investment performance of the Funds and the Adviser, (iii) the costs of services provided and estimated profits realized by the Adviser, (iv) the extent to which economies of scale are realized as the Funds grow, (v) whether fee levels reflect any possible economies of scale for the benefit of Fund shareholders, (vi) comparisons of services rendered and amounts paid to other registered investment companies and (vii) any benefits realized by the Adviser from its relationship with each Fund. Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the continuation of the Investment Advisory Agreement for each Fund. No single factor was determinative in the Board's analysis.
Nature, Extent and Quality of Services. In evaluating the nature, extent and quality of the Adviser's services, the Trustees reviewed information concerning the functions performed by the Adviser for the Funds, information describing the Adviser's current organization and projected staffing, including operations assistance provided by the Adviser's parent organization, Invesco Ltd., and the background and experience of the persons responsible for the day-to-day management of the Funds. The Trustees reviewed matters related to the Adviser's oversight of the execution of portfolio transactions on behalf of the Funds. The Trustees also reviewed information on the performance of the Funds and the performance of their underlying indices through December 31, 2009. The Trustees also reviewed reports on the correlation and tracking error between the underlyin g index and each Fund's performance, including a report of Ibbotson Associates, a consultant to the Independent Trustees, that analyzed the reasons for tracking error for certain PowerShares funds, as well as the Adviser's analysis of the tracking error between each Fund and its underlying index. The Trustees noted that, in each case, the correlation and tracking error for each Fund was within the targeted range set forth in the Trust's registration statement. The Trustees concluded that each Fund was correlated to its underlying index and that the tracking error for each Fund was within an acceptable range given that Fund's particular circumstances.
The Trustees also considered the services provided by the Adviser in its oversight of the Funds' administrator, custodian and transfer agent. They noted the significant amount of time and effort that had been devoted to this oversight function.
Based on their review, the Trustees concluded that the nature, extent and quality of services provided by the Adviser to the Funds under the Investment Advisory Agreement were appropriate and reasonable.
Fees, Expenses and Profitability. The Trustees reviewed and discussed the information provided by the Adviser on each Fund's total expense ratio and unitary advisory fee, as compared to information compiled by the Adviser from Lipper Inc. databases on the expense ratios of comparable exchange-traded funds ("ETFs"), open-end (non-ETF) index funds and open-end actively-managed funds. The Trustees noted that
86
Board Considerations Regarding Continuation of Investment Advisory Agreement (Continued)
the annual unitary advisory fee is 0.70% for each of PowerShares FTSE NASDAQ Small Cap Portfolio and PowerShares NXQ Portfolio, 0.60% for PowerShares NASDAQ Internet Portfolio and 0.75% for each of PowerShares NASDAQ-100 BuyWrite Portfolio and PowerShares S&P 500 BuyWrite Portfolio, and that the Adviser pays all other expenses of each Fund, except that each Fund pays its brokerage expenses, taxes, interest and extraordinary expenses.
The Trustees noted that the Adviser represented that it does not provide investment advisory services to any clients other than the Funds and other ETFs overseen by the Board. The Trustees noted that: the advisory fee for PowerShares FTSE NASDAQ Small Cap Portfolio was higher than the median expense ratios of its ETF peer funds and open-end index peer funds, but lower than the median expense ratio of its open-end actively-managed peer funds; the advisory fee for PowerShares NASDAQ Internet Portfolio was equal to or lower than the median expense ratio of its ETF peer funds and open-end actively-managed peer funds, but higher than its open-end index peer funds; the advisory fee for each of PowerShares NASDAQ-100 BuyWrite Portfolio and PowerShares S&P 500 BuyWrite Portfolio was equal to or lower than the median expense ratio for each of its peer group funds; and the advisory fee for PowerShares NXQ Portfolio was higher than the median expense ratio of its ETF peer funds, but lower than the median expense ratios of its open-end index peer funds and open-end actively-managed peer funds. The Trustees noted that each Fund's advisory fee was reasonable because of the complexity of the indices, which generally require more frequent rebalancing of the portfolios, the distinguishing factors of the Funds and the higher administrative, operational and management oversight costs for the Adviser. The Trustees also noted that a portion of each Fund's advisory fee was attributable to a license fee payable out of the unitary fee charged to that Fund. The Board concluded that the unitary advisory fee charged to each Fund was reasonable and appropriate in light of the services provided.
In conjunction with their review of the unitary advisory fee, the Trustees also considered information provided by the Adviser on the revenues received by the Adviser under the Investment Advisory Agreement. The Trustees reviewed information provided by the Adviser on its profitability as well as any profits or losses realized by the Adviser from its relationship to each Fund. The Trustees concluded that the estimated profitability to the Adviser of the advisory services provided to any of the Funds was not unreasonable.
Economies of Scale and Whether Fee Levels Reflect These Economies of Scale. The Trustees reviewed the information provided by the Adviser as to the extent to which economies of scale are realized as each Fund grows and whether fee levels reflect economies of scale for the benefit of shareholders. The Trustees reviewed each Fund's asset size and expense ratio. The Trustees noted that any reduction in fixed costs associated with the management of the Funds would be enjoyed by the Adviser, but a unitary fee provides certainty in expenses for the Funds. The Trustees considered whether the advisory fee rate for each Fund was reasonable in relation to the asset size of that Fund, and concluded that the flat advisory fee was reasonable and appropriate.
The Trustees noted that the Adviser had not identified any further benefits that it derived from its relationship with the Funds and had noted that it does not have any soft-dollar arrangements.
Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the continuation of the Investment Advisory Agreement for each Fund. No single factor was determinative in the Board's analysis.
87
This page intentionally left blank
PROXY VOTING POLICIES AND PROCEDURES
A description of the Funds' proxy voting policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available, without charge and upon request, by calling (800) 337-4246. This information is also available on the Securities and Exchange Commission's ("Commission") website at www.sec.gov.
Information regarding how the Funds voted proxies for portfolio securities, if applicable, during the most recent 12-month period ended June 30, is also available, without charge and upon request, by (i) calling (800) 337-4246; or (ii) accessing the Funds' Form N-PX on the Commission's website at www.sec.gov.
QUARTERLY PORTFOLIOS
The Funds file their complete schedules of portfolio holdings with the Commission for the first and third quarters of each fiscal year on Form N-Q. The Funds' Forms N-Q are available on the Commission's website at www.sec.gov. The Funds' Forms N-Q may also be reviewed and copied at the Commission's Public Reference Room in Washington, D.C.; information on the operation of the Public Reference Room may be obtained by calling (800) SEC-0330.
301 West Roosevelt Road
Wheaton, IL 60187
800.983.0903
www.invescopowershares.com
© 2009 Invesco PowerShares Capital Management LLC P-PS-AR-3
Item 2. Code of Ethics.
The Registrant has adopted a Code of Ethics that applies to the Registrant’s principal executive officer and principal financial officer. This Code is filed as an exhibit to this report on Form N-CSR under Item 12(a)(1).
Item 3. Audit Committee Financial Expert.
The Registrant’s Board of Trustees has determined that the Registrant has three “audit committee financial experts” serving on its audit committee: Mr. Marc M. Kole, Mr. Philip M. Nussbaum, and Mr. Donald H. Wilson. Each of these audit committee members is “independent,” meaning that he is not an “interested person” of the Registrant (as that term is defined in Section 2(a)(19) of the Investment Company Act of 1940) and he does not accept any consulting, advisory, or other compensatory fee from the Registrant (except in the capacity as a Board or committee member).
An “audit committee financial expert” is not an “expert” for any purpose, including for purposes of Section 11 of the Securities Act of 1933, as a result of being designated as an “audit committee financial expert.” Further, the designation of a person as an “audit committee financial expert” does not mean that the person has any greater duties, obligations, or liability than those imposed on the person without the “audit committee financial expert” designation. Similarly, the designation of a person as an “audit committee financial expert” does not affect the duties, obligations, or liability of any other member of the audit committee or board of trustees.
Item 4. Principal Accountant Fees and Services.
PricewaterhouseCoopers (“PWC”) billed the Registrant aggregate fees for services rendered to the Registrant for the last two fiscal years as follows:
|
| Fees Billed by |
| Percentage of |
| Fees Billed by |
| Percentage of |
| ||
|
|
|
|
|
|
|
|
|
| ||
Audit Fees |
| $ | 1,054,000 |
| N/A |
| $ | 1,278,000 |
| N/A |
|
Audit-Related Fees(2) |
| $ | 0 |
| 0 | % | $ | 11,250 |
| 0 | % |
Tax Fees(3) |
| $ | 542,250 |
| 0 | % | $ | 561,550 |
| 0 | % |
All Other Fees |
| $ | 0 |
| 0 | % | $ | 0 |
| 0 | % |
Total Fees |
| $ | 1,596,250 |
| 0 | % | $ | 1,850,800 |
| 0 | % |
PWC billed the Registrant aggregate fees of $542,250 for the fiscal year ended 2010 and $572,800 for the fiscal year ended 2009, for non-audit services rendered to the Registrant.
(1) For the provision of non-audit services, the pre-approval requirement is waived pursuant to a de minimis exception if (i) such services were not recognized as non-audit services by the Registrant at the time of engagement, (ii) the aggregate amount of all such services provided is no more than 5% of the aggregate audit and non-audit fees paid by the Registrant during the fiscal year in which the services are
provided; and (iii) such services are promptly brought to the attention of the Registrant’s Audit Committee and approved by the Registrant’s Audit Committee prior to the completion of the audit.
(2) Audit-Related Fees for the fiscal year ended April 30, 2009 included fees billed for reviewing certain registration statements, of which $6,000 was ratified by the Audit Committee following the rendering of such services.
(3) Tax fees for the fiscal year ended April 30, 2010 includes fees billed for reviewing tax returns, excise tax returns and excise distribution calculations in addition to preparing the final tax returns for the thirteen liquidating portfolios. Tax fees for the fiscal year ended April 30, 2009 included fees billed for reviewing tax returns and for providing tax consultation services for the PowerShares Dynamic Oil & Gas Services Portfolio.
PWC did not bill any fees for non-audit services rendered to the Registrant’s investment adviser (not including any sub adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) or any entity controlling, controlled by or under common control with the Registrant’s investment adviser that provides ongoing services to the Registrant for the fiscal years ended April 30, 2010 and April 30, 2009.
Audit Committee Pre Approval Policies and Procedures
PRE-APPROVAL OF AUDIT AND NON-AUDIT SERVICES
POLICIES AND PROCEDURES
As Adopted by the Audit Committee of
the PowerShares Funds (the “Funds”)
June 26, 2009
Statement of Principles
Under the Sarbanes-Oxley Act of 2002 and rules adopted by the Securities and Exchange Commission (“SEC”) (“Rules”), the Audit Committee of the Funds’ (the “Audit Committee”) Board of Trustees (the “Board”) is responsible for the appointment, compensation and oversight of the work of independent accountants (an “Auditor”). As part of this responsibility and to assure that the Auditor’s independence is not impaired, the Audit Committee pre-approves the audit and non-audit services provided to the Funds by each Auditor, as well as all non-audit services provided by the Auditor to the Funds’ investment adviser and to affiliates of the adviser that provide ongoing services to the Funds (“Service Affiliates”) if the services directly impact the Funds’ operations or financial reporting. The SEC Rules also specify the types of services that an Auditor may not provide to its audit client. The following policies and procedures comply with the requirements for pre-approval and provide a mechanism by which management of the Funds may request and secure pre-approval of audit and non-audit services in an orderly manner with minimal disruption to normal business operations.
Proposed services either may be pre-approved without consideration of specific case-by-case services by the Audit Committee (“general pre-approval”) or require the specific pre-approval of the Audit Committee (“specific pre-approval”). As set forth in these policies and procedures, unless a type of service has received general pre-approval, it will require specific pre-approval by the Audit Committee. Additionally, any fees exceeding 110% of estimated pre-approved fee levels provided at the time the service was pre-approved will also require specific approval by the Audit Committee before payment is made. The Audit Committee will also consider the impact of additional fees on the Auditor’s independence when determining whether to approve any additional fees for previously pre-approved services.
The Audit Committee will annually review and generally pre-approve the services that may be provided by each Auditor without obtaining specific pre-approval from the Audit Committee. The term of any general pre-approval runs from the date of such pre-approval through June 30th of the following year, unless the Audit Committee considers a different period and states otherwise. The Audit Committee will add to or subtract from the list of general pre-approved services from time to time, based on subsequent determinations.
The purpose of these policies and procedures is to set forth the guidelines to assist the Audit Committee in fulfilling its responsibilities.
Delegation
The Chairman of the Audit Committee (or, in his or her absence, any member of the Audit Committee) may grant specific pre-approval for non-prohibited services for engagements of less than $20,000. All such delegated pre-approvals shall be presented to the Audit Committee no later than the next Audit Committee meeting.
Audit Services
The annual audit services engagement terms will be subject to specific pre-approval of the Audit Committee. Audit services include the annual financial statement audit and other procedures such as tax provision work that is required to be performed by the independent auditor to be able to form an opinion on the Funds’ financial statements. The Audit Committee will obtain, review and consider sufficient information concerning the proposed Auditor to make a reasonable evaluation of the Auditor’s qualifications and independence.
In addition to the annual Audit services engagement, the Audit Committee may grant either general or specific pre-approval of other Audit services, which are those services that only the independent auditor reasonably can provide. Other Audit services may include services such as issuing consents for the inclusion of audited financial statements with SEC registration statements, periodic reports and other documents filed with the SEC or other documents issued in connection with securities offerings.
Non-Audit Services
The Audit Committee may provide either general or specific pre-approval of any non-audit services to the Funds and its Service Affiliates if the Audit Committee believes that the provision of the service will not impair the independence of the Auditor, is consistent with the SEC’s Rules on auditor independence, and otherwise conforms to the Audit Committee’s general principles and policies as set forth herein.
Audit-Related Services
“Audit-related services” are assurance and related services that are reasonably related to the performance of the audit or review of the Funds’ financial statements or that are traditionally performed by the independent auditor. Audit-related services include, among others, accounting consultations related to accounting, financial reporting or disclosure matters not classified as “Audit services”; and assistance with understanding and implementing new accounting and financial reporting guidance from rulemaking authorities.
Tax Services
“Tax services” include, but are not limited to, the review and signing of the Funds’ federal tax returns, the review of required distributions by the Funds and consultations regarding tax matters such as the tax treatment of new investments or the impact of new regulations. The Audit Committee will scrutinize carefully the retention of the Auditor in connection with a transaction initially recommended by the Auditor, the major business purpose of which may be tax avoidance or the tax treatment of which may not be supported in the Internal Revenue Code and related regulations. The Audit Committee will consult with the Funds’ Treasurer (or his or her designee) and may consult with outside counsel or advisors as necessary to ensure the consistency of Tax services rendered by the Auditor with the foregoing policy.
No Auditor shall represent any Fund or any Service Affiliate before a tax court, district court or federal court of claims.
Under rules adopted by the Public Company Accounting Oversight Board and approved by the SEC, in connection with seeking Audit Committee pre-approval of permissible Tax services, the Auditor shall:
1. Describe in writing to the Audit Committee, which writing may be in the form of the proposed engagement letter:
a. The scope of the service, the fee structure for the engagement, and any side letter or amendment to the engagement letter, or any other agreement between the Auditor and the Fund, relating to the service; and
b. Any compensation arrangement or other agreement, such as a referral agreement, a referral fee or fee-sharing arrangement, between the Auditor and any person (other than the Fund) with respect to the promoting, marketing, or recommending of a transaction covered by the service;
2. Discuss with the Audit Committee the potential effects of the services on the independence of the Auditor; and
3. Document the substance of its discussion with the Audit Committee.
All Other Auditor Services
The Audit Committee may pre-approve non-audit services classified as “All other services” that are not categorically prohibited by the SEC, as listed in Exhibit 1 to this policy.
Pre-Approval Fee Levels or Established Amounts
Pre-approval of estimated fees or established amounts for services to be provided by the Auditor under general or specific pre-approval policies will be set periodically by the Audit Committee. Any proposed fees exceeding 110% of the maximum estimated pre-approved fees or established amounts for pre-approved audit and non-audit services will be reported to the Audit Committee at the quarterly Audit Committee meeting and will require specific approval by the Audit Committee before payment is made. The Audit Committee will always factor in the overall relationship of fees for audit and non-audit services in determining whether to pre-approve any such services and in determining whether to approve any additional fees exceeding 110% of the maximum pre-approved fees or established amounts for previously pre-approved services.
Procedures
On an annual basis, the Auditor will submit to the Audit Committee for general pre-approval, a list of non-audit services that the Funds or Service Affiliates of the Funds may request from the Auditor. The list will describe the non-audit services in reasonable detail and will include an estimated range of fees and such other information as the Audit Committee may request.
Each request for services to be provided by the Auditor under the general pre-approval of the Audit Committee will be submitted to the Funds’ Treasurer (or his or her designee) and must include a detailed description of the services to be rendered. The Treasurer or his or her designee will ensure that such services are included within the list of services that have received the general pre-approval of the Audit Committee. The Audit Committee will be informed at the next quarterly scheduled Audit Committee meeting of any such services for which the Auditor rendered an invoice and whether such services and fees had been pre-approved and if so, by what means.
Each request to provide services that require specific approval by the Audit Committee shall be submitted to the Audit Committee jointly by the Funds’ Treasurer or his or her designee and the Auditor, and must include a joint statement that, in their view, such request is consistent with the pre-approval policies and procedures and the SEC Rules.
Each request to provide Tax services under either the general or specific pre-approval of the Audit Committee will describe in writing: (i) the scope of the service, the fee structure for the engagement, and any side letter or amendment to the engagement letter, or any other agreement between the Auditor and the audit client, relating to the service; and (ii) any compensation arrangement or other agreement between the Auditor and any person (other than the audit client) with respect to the promoting, marketing, or recommending of a transaction covered by the service.
The Auditor will discuss with the Audit Committee the potential effects of the services on the Auditor’s independence and will document the substance of the discussion.
Non-audit services pursuant to the de minimis exception provided by the SEC Rules will be promptly brought to the attention of the Audit Committee for approval, including documentation that each of the conditions for this exception, as set forth in the SEC Rules, has been satisfied.
On at least an annual basis, the Auditor will prepare a summary of all the services provided to any entity in the investment company complex as defined in section 2-01(f)(14) of Regulation S-X in sufficient detail as to the nature of the engagement and the fees associated with those services.
The Audit Committee has designated the Funds’ Treasurer to monitor the performance of all services provided by the Auditor and to ensure such services are in compliance with these policies and procedures. The Funds’ Treasurer will report to the Audit Committee on a periodic basis as to the results of such monitoring. Both the Funds’ Treasurer and management will immediately report to the Chairman of the Audit Committee any breach of these policies and procedures that comes to the attention of the Funds’ Treasurer or senior management.
Exhibit 1 to Pre-Approval of Audit and Non-Audit Services Policies and Procedures
Conditionally Prohibited Non-Audit Services (not prohibited if the Fund can reasonably conclude that the results of the service would not be subject to audit procedures in connection with the audit of the Fund’s financial statements)
· Bookkeeping or other services related to the accounting records or financial statements of the audit client
· Financial information systems design and implementation
· Appraisal or valuation services, fairness opinions, or contribution-in-kind reports
· Actuarial services
· Internal audit outsourcing services
Categorically Prohibited Non-Audit Services
· Management functions
· Human resources
· Broker-dealer, investment adviser, or investment banking services
· Legal services
· Expert services unrelated to the audit
· Any service or product provided for a contingent fee or a commission
· Services related to marketing, planning, or opining in favor of the tax treatment of confidential transactions or aggressive tax position transactions, a significant purpose of which is tax avoidance
· Tax services for persons in financial reporting oversight roles at the Fund
· Any other service that the Public Company Oversight Board determines by regulation is impermissible.
PwC advised the Registrant’s Audit Committee that PwC had identified a matter for consideration under the SEC’s auditor independence rules. PwC stated that an immediate family member of an employee of PwC had invested in an affiliate of the Registrant, which constituted an investment in an affiliate of an audit client in violation of Rule 2-01(c)(1) of Regulation S-X.
PwC advised the Audit Committee that it believes its independence had not been adversely affected by this matter as it related to the audit of the Registrant. In reaching this conclusion, PwC noted that during
the time of its audit the engagement team was not aware of the investment, the violation was inadvertent, the violation was self-reported upon discovery and the investment disposed of, and the PwC employee was not involved in the Registrant’s audit.
Item 5. Audit Committee of Listed Registrants.
The Registrant has a separately designated Audit Committee established in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934, as amended, which consists of the independent trustees. The Audit Committee members are Ronn R. Bagge, Todd J. Barre, Marc M. Kole, Philip M. Nussbaum, and Donald H. Wilson.
Item 6. Schedule of Investments.
The Schedules of Investments are included as a part of the report to shareholders filed under Item 1 of this Form N-CSR.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees that would require disclosure herein.
Item 11. Controls and Procedures.
a) Based on their evaluation of the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) as of a date within 90 days of the filing date of this report, the Registrant’s President (principal executive officer) and Treasurer (principal financial officer) have concluded that such disclosure controls and procedures are effective.
b) There were no significant changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the fourth fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
Item 12. Exhibits.
(a)(1) Code of Ethics.
(a)(2) Certifications of the Registrant’s President and Treasurer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 are attached as Exhibit 99.CERT.
(b) Certifications of the Registrant’s President and Treasurer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 are attached as Exhibit 99.906CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) | PowerShares Exchange-Traded Fund Trust |
|
By: | /s/ Andrew Schlossberg |
|
|
| |
Name: | Andrew Schlossberg |
|
|
| |
Title: | President |
|
|
| |
Date: | June 28, 2010 |
|
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By: | /s/ Andrew Schlossberg |
|
|
| |
Name: | Andrew Schlossberg |
|
|
| |
Title: | President |
|
|
|
|
Date: | June 28, 2010 |
|
|
| |
By: | /s/ Bruce T. Duncan |
|
|
| |
Name: | Bruce T. Duncan |
|
|
|
|
Title: | Treasurer |
|
|
| |
Date: | June 28, 2010 |
|