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 Wheaton, IL 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, 2012 |
| |||
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:
2012 Annual Report to Shareholders
April 30, 2012
PowerShares Buyback AchieversTM Portfolio (PKW)
PowerShares Dividend AchieversTM Portfolio (PFM)
PowerShares Financial Preferred Portfolio (PGF)
PowerShares High Yield Equity Dividend
AchieversTM Portfolio (PEY)
PowerShares International Dividend
AchieversTM Portfolio (PID)
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 (PKW) | 18 | ||||||
PowerShares Dividend AchieversTM Portfolio (PFM) | 21 | ||||||
PowerShares Financial Preferred Portfolio (PGF) | 24 | ||||||
PowerShares High Yield Equity Dividend AchieversTM Portfolio (PEY) | 25 | ||||||
PowerShares International Dividend AchieversTM Portfolio (PID) | 27 | ||||||
Statements of Assets and Liabilities | 30 | ||||||
Statements of Operations | 31 | ||||||
Statements of Changes in Net Assets | 32 | ||||||
Financial Highlights | 34 | ||||||
Notes to Financial Statements | 37 | ||||||
Report of Independent Registered Public Accounting Firm | 49 | ||||||
Tax Information | 50 | ||||||
Trustees and Officers | 51 | ||||||
Board Considerations Regarding Approval of Continuation of Investment Advisory Agreement | 58 | ||||||
The Market Environment
Domestic Equity:
Equity markets were volatile during the fiscal year ended April 30, 2012, but the broad market, as measured by the S&P 500® Index, still managed to post a small gain. While corporate earnings remained strong, investor enthusiasm was tempered by continuing high unemployment, sluggish consumer spending and soft housing data for most of the year. Although markets stabilized and remained generally positive in the spring and early summer, major equity indices sold off precipitously in August as the U.S. government struggled to raise the nation's debt ceiling. This led credit rating agency Standard & Poor's to announce its first-ever ratings downgrade to long-term U.S. government debt. Uncertainty created by the downgrade, combined with continuing concern about the debt crisis in the eurozone, reignited fears of a recession and pressured markets downward into the fall. As signs of muted but sustained economic growth mounted, equity markets moved off their October lows and posted strong gains through the close of the reporting period with the S&P 500® Index returning 12.8% from the end of October 2011 to the end of April 2012.
International Equity:
Many of the headwinds that buffeted global stock markets in 2010 continued through 2011, with markets posting some of their sharpest declines since 2008. Notably, the eurozone debt crisis surrounding Greece and other southern European nations, including Spain, Portugal and Italy, became an unresolved, multi-chapter economic saga during the reporting period. European Union leaders' seeming lack of clarity and direction in how to address solvency and fiscal deficit concerns increased market unrest. Although the U.S. economy continued growing during the reporting period, the Standard & Poor's downgrade of the U.S. government's credit rating, high unemployment and a still-weak housing market created uncertainty for investors. The earthquake and tsunami that battered Japan's northeast coast in March 2011 caused a prolonged nuclear disaster and disrupted global stock markets.
Market uncertainty in developed economies spilled over into emerging markets. This less-than-positive outlook, coupled with rising inflation, hampered growth in developing nations. Multiple interest rate hikes were enacted to head off inflation, which squeezed growth margins. China, often considered Asia's economic engine, also contended with the potential for a real estate bubble due to a slowing property market. Political uprisings in the Middle East shook the global economy as well.
Throughout the reporting period, investors fluctuated between risk-on and risk-off trades, which created significant positive and negative market swings. This trend pushed many asset classes into negative territory, while less-risky assets, such as bonds, tended to have positive results during the reporting period. Though stocks experienced a turbulent year, equity markets rallied in late 2011 continuing into early 2012. Despite overall slower growth, corporations in general maintained solid economic health.
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 generally correspond (before fees and expenses) to the price and yield of the Share BuyBack AchieversTM Index (the "Index"). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index. The Index is designed to track the performance of companies that meet the requirements to be classified as BuyBack AchieversTM. To become eligible for inclusion in the Index, a company must be incorporated in the U.S., trade on a U.S. exchange and must have repurchased at least 5% or more of its outstanding shares for the trailing 12 months.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned 8.91%. On a Net Asset Value ("NAV") basis, the Fund returned 8.91%. During the same reporting period, the Index returned 9.62%, while the S&P 500® Index returned 4.73% and the Russell 3000® Value Index returned 0.61%. The Fund benefited most from positive performance of securities of companies in consumer discretionary, health care, and industrials sectors. The Fund was hurt most by exposure to the information technology sector.
At the single stock level, the Fund benefited most from exposure to Amgen, Inc. (portfolio average weight of 4.21%), International Business Machines Corp. (portfolio average weight of 5.08%), and Bristol-Myers Squibb Co. (portfolio average weight of 3.39%). The leading detractors to the Fund were Walgreen Co. (no longer held at April 30, 2012), Hewlett-Packard Co. (portfolio average weight of 3.80%), and WellPoint, Inc. (portfolio average weight of 1.94%).
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Consumer Discretionary | 32.6 | ||||||
Information Technology | 20.3 | ||||||
Health Care | 14.8 | ||||||
Industrials | 10.5 | ||||||
Financials | 7.7 | ||||||
Energy | 6.0 | ||||||
Consumer Staples | 4.7 | ||||||
Materials | 2.9 | ||||||
Utilities | 0.3 | ||||||
Telecommunication Services | 0.2 | ||||||
Money Market Fund | 0.1 | ||||||
Liabilities in excess of other assets | (0.1 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Large-Cap Growth | 38.4 | ||||||
Large-Cap Value | 31.8 | ||||||
Mid-Cap Value | 12.3 | ||||||
Mid-Cap Growth | 10.6 | ||||||
Small-Cap Growth | 3.9 | ||||||
Small-Cap Value | 3.0 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
Intel Corp. | 5.1 | ||||||
International Business Machines Corp. | 5.1 | ||||||
ConocoPhillips | 4.1 | ||||||
Walt Disney Co. (The) | 4.0 | ||||||
Home Depot, Inc. (The) | 3.9 | ||||||
Amgen, Inc. | 3.0 | ||||||
Hewlett-Packard Co. | 2.4 | ||||||
Target Corp. | 2.0 | ||||||
Lowe's Cos., Inc. | 2.0 | ||||||
Time Warner, Inc. | 1.9 | ||||||
Total | 33.5 |
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, 2012 | ||||||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Share Buyback AchieversTM Index | 9.62 | % | 24.09 | % | 4.14 | % | 4.71 | % | 27.95 | % | |||||||||||||
Russell 3000® Value Index | 0.61 | % | 18.36 | % | (1.63 | )% | (0.66 | )% | (3.49 | )% | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 1.89 | % | 10.48 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | 8.91 | % | 23.23 | % | 3.38 | % | 3.93 | % | 22.95 | % | |||||||||||||
Share Price Return | 8.91 | % | 23.21 | % | 3.31 | % | 3.90 | % | 22.75 | % |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 1.00%. The Financial Highlights section of this Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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 2,015 common stocks, respectively.
† Fund and underlying Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from 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 generally correspond (before fees and expenses) to the price and yield of the Broad Dividend AchieversTM Index (the "Index"). The Fund generally will invest at least 90% of its total assets in dividend-paying common stocks that comprise the Index. The Index is designed to track the performance of companies that meet the requirements to be classified as Dividend AchieversTM. To become eligible for inclusion in the Index, a company must (i) be incorporated in the U.S., (ii) trade on a U.S. exchange and (iii) have increased its annual regular cash dividend payments for each of its last ten fiscal years.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned 5.71%. On a Net Asset Value ("NAV") basis, the Fund returned 5.78%. During the same reporting period, the Index returned 6.43%, while the S&P 500® Index returned 4.73% and the Russell 3000® Value Index returned 0.61%. The Fund benefited most from positive performance of securities of companies in consumer discretionary, consumer staples, and information technology sectors. The Fund was hurt by exposure to the industrials sector.
At the single stock level, the Fund benefited most from exposure to International Business Machines Corp. (portfolio average weight of 5.12%), McDonald's Corp. (portfolio average weight of 2.92%), and Coca-Cola Co. (portfolio average weight of 4.70%). The leading detractors to the Fund were Walgreen Co. (portfolio average weight of 1.10%), Caterpillar, Inc. (portfolio average weight of 1.89%), and United Technologies Corp. (portfolio average weight of 2.20%).
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Consumer Staples | 24.8 | ||||||
Energy | 16.5 | ||||||
Industrials | 12.8 | ||||||
Health Care | 10.3 | ||||||
Consumer Discretionary | 9.2 | ||||||
Information Technology | 6.3 | ||||||
Financials | 5.4 | ||||||
Telecommunication Services | 5.3 | ||||||
Materials | 5.3 | ||||||
Utilities | 4.1 | ||||||
Money Market Fund | 0.0 | ||||||
Other assets less liabilities | 0.0 |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Large-Cap Value | 51.8 | ||||||
Large-Cap Growth | 34.9 | ||||||
Mid-Cap Value | 6.9 | ||||||
Mid-Cap Growth | 3.9 | ||||||
Small-Cap Value | 2.0 | ||||||
Small-Cap Growth | 0.5 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
AT&T, Inc. | 5.2 | ||||||
Wal-Mart Stores, Inc. | 5.2 | ||||||
Chevron Corp. | 5.2 | ||||||
International Business Machines Corp. | 4.9 | ||||||
Exxon Mobil Corp. | 4.8 | ||||||
Johnson & Johnson | 4.7 | ||||||
Coca-Cola Co. (The) | 4.6 | ||||||
Procter & Gamble Co. (The) | 4.6 | ||||||
McDonald's Corp. | 2.8 | ||||||
PepsiCo, Inc. | 2.8 | ||||||
Total | 44.8 |
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, 2012 | ||||||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Broad Dividend AchieversTM Index | 6.43 | % | 18.95 | % | 0.82 | % | 3.83 | % | 28.26 | % | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 4.21 | % | 31.64 | % | |||||||||||||
Russell 3000® Value Index | 0.61 | % | 18.36 | % | (1.63 | )% | 2.90 | % | 21.02 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | 5.78 | % | 18.17 | % | 0.21 | % | 3.17 | % | 22.93 | % | |||||||||||||
Share Price Return | 5.71 | % | 18.14 | % | 0.18 | % | 3.16 | % | 22.85 | % |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.61%. The Financial Highlights section of this Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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 2,015 common stocks, respectively.
† Fund and underlying Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from 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 generally correspond (before fees and expenses) to the price and yield of the Wells Fargo® Hybrid & Preferred Securities Financial Index (the "Index"). The Fund generally will invest at least 90% of its total assets in preferred securities that comprise the Index. The Index is designed to track the performance of companies that meet the requirements to be classified as "financial" from the Bloomberg Professional Services.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned 4.68%. On a Net Asset Value ("NAV") basis, the Fund returned 4.56%. During the same reporting period, the Index returned 5.66%, while the S&P U.S. Preferred Stock Index returned 4.29% and the S&P 500® Index returned 4.73%. Fund performance was positive for securities of companies within each industry.
At the single stock level, the Fund benefited most from exposure to HSBC Holdings PLC (portfolio average weight of 10.02%), Wells Fargo & Co., Series J (portfolio average weight of 4.55%), and ING Groep NV (portfolio average weight of 5.44%). The leading detractors to the Fund were National Bank of Greece SA American Depositary Receipt ("ADR") (no longer held at April 30, 2012) and Royal Bank of Scotland Group PLC ADR (portfolio average weight of 1.89%).
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Banks | 66.0 | ||||||
Insurance | 27.1 | ||||||
Diversified Financial Services | 5.8 | ||||||
Savings & Loans | 1.0 | ||||||
Money Market Fund | 0.6 | ||||||
Liabilities in excess of other assets | (0.5 | ) |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
HSBC Holdings PLC, 8.00% | 9.3 | ||||||
Bank of America Corp., 8.20% | 7.0 | ||||||
ING Groep NV, 8.50% | 5.6 | ||||||
HSBC Holdings PLC, 8.13% | 5.1 | ||||||
Bank of America Corp., 8.63% | 4.4 | ||||||
ING Groep NV, 7.38% | 4.0 | ||||||
Wells Fargo & Co., 8.00% | 4.0 | ||||||
Credit Suisse Guernsey, 7.90% | 4.0 | ||||||
JP Morgan Chase & Co., 8.63% | 3.9 | ||||||
MetLife, Inc., 6.50% | 3.8 | ||||||
Total | 51.1 |
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, 2012 | ||||||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Wells Fargo® Hybrid & Preferred Securities Financial Index | 5.66 | % | 27.55 | % | 2.98 | % | 3.03 | % | 17.53 | % | |||||||||||||
S&P U.S. Preferred Stock Index | 4.29 | % | 23.79 | % | 2.89 | % | 3.36 | % | 19.62 | % | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 2.12 | % | 12.03 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | 4.56 | % | 25.14 | % | 1.56 | % | 1.66 | % | 9.33 | % | |||||||||||||
Share Price Return | 4.68 | % | 25.22 | % | 1.52 | % | 1.56 | % | 8.74 | % |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.66%. The Financial Highlights section of this Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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 U.S. Preferred Stock 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 242 and 500 common stocks, respectively.
† Fund and underlying Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from 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 generally correspond (before fees and expenses) to the price and yield of the Mergent Dividend AchieversTM 50 Index (the "Index"). The Fund generally will invest at least 90% of its total assets in dividend-paying common stocks that comprise the Index. The Index is comprised of 50 stocks selected principally on the basis of dividend yield and consistent growth in dividends.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned 7.37%. On a Net Asset Value ("NAV") basis, the Fund returned 7.37%. During the same reporting period, the Index returned 8.02%, while the Dow Jones U.S. Select Dividend Index returned 10%, the S&P 500® Value Index returned 1.29% and the S&P 500® Index returned 4.73%. The Fund benefited most from positive performance of securities of companies in financials, utilities, and consumer staples sectors. The Fund was hurt most by exposure to industrials and health care sectors.
At the single stock level, the Fund benefited most from exposure to Harleysville Group, Inc. (portfolio average weight of 1.52%), Altria Group, Inc. (portfolio average weight of 2.81%), and Mercury General Corp. (portfolio average weight of 2.84%). The leading detractors to the Fund were Pitney Bowes, Inc. (portfolio average weight of 2.97%), Meridian Bioscience, Inc. (portfolio average weight of 1.22%), and Hudson City Bancorp, Inc. (no longer held at April 30, 2012).
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Electric | 16.3 | ||||||
Gas | 13.5 | ||||||
Banks | 13.5 | ||||||
Agriculture | 8.8 | ||||||
Insurance | 7.9 | ||||||
Water | 5.1 | ||||||
Office/Business Equipment | 4.1 | ||||||
Household Products/Wares | 3.5 | ||||||
Pharmaceuticals | 3.2 | ||||||
Telecommunications | 2.8 | ||||||
Savings & Loans | 2.3 | ||||||
Cosmetics/Personal Care | 2.2 | ||||||
Media | 2.2 | ||||||
Miscellaneous Manufacturing | 2.1 | ||||||
Food | 1.7 | ||||||
Packaging & Containers | 1.7 | ||||||
Oil & Gas | 1.7 | ||||||
Iron/Steel | 1.6 | ||||||
Chemicals | 1.5 | ||||||
Distribution/Wholesale | 1.5 | ||||||
Electrical Components & Equipment | 1.5 | ||||||
Computers | 1.3 | ||||||
Money Market Fund | 0.2 | ||||||
Liabilities in excess of other assets | (0.2 | ) |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
Vector Group Ltd. | 4.3 | ||||||
Pitney Bowes, Inc. | 4.1 | ||||||
Old Republic International Corp. | 3.0 | ||||||
AT&T, Inc. | 2.8 | ||||||
Mercury General Corp. | 2.6 | ||||||
Altria Group, Inc. | 2.5 | ||||||
PPL Corp. | 2.4 | ||||||
Vectren Corp. | 2.3 | ||||||
People's United Financial, Inc. | 2.3 | ||||||
Unisource Energy Corp. | 2.2 | ||||||
Total | 28.5 |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Small-Cap Value | 42.1 | ||||||
Mid-Cap Value | 19.4 | ||||||
Large-Cap Value | 17.9 | ||||||
Mid-Cap Growth | 9.8 | ||||||
Large-Cap Growth | 7.8 | ||||||
Small-Cap Growth | 3.0 |
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, 2012 | ||||||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Mergent Dividend AchieversTM 50 Index | 8.02 | % | 20.95 | % | (5.38 | )% | (1.49 | )% | (10.53 | )% | |||||||||||||
Dow Jones U.S. Select Dividend Index | 10.00 | % | 22.61 | % | (0.44 | )% | 3.55 | % | 29.49 | % | |||||||||||||
S&P 500® Value Index | 1.29 | % | 18.42 | % | (1.91 | )% | 3.23 | % | 26.58 | % | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 4.52 | % | 38.76 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | 7.37 | % | 20.22 | % | (5.65 | )% | (1.88 | )% | (13.11 | )% | |||||||||||||
Share Price Return | 7.37 | % | 20.21 | % | (5.61 | )% | (1.88 | )% | (13.05 | )% |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.62%. The Financial Highlights section of this Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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 500® 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, 368 and 500 common stocks, respectively.
† Fund and underlying Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from 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 generally correspond (before fees and expenses) to the price and yield of the International Dividend AchieversTM Index (the "Index"). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index. The Index is comprised of 50 stocks selected principally on the basis of dividend yield and consistent growth in dividends.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned (5.97)%. On a Net Asset Value ("NAV") basis, the Fund returned (5.87)%. During the same reporting period, the Index returned (4.93)%, while the Dow Jones EPAC Select Dividend Index returned (12.23)%, the MSCI EAFE® Value Index returned (15.59)% and the S&P 500® Index returned 4.73%. The Fund benefitted most from positive performance of securities of companies in consumer staples and financials sectors. The Fund was hurt most from negative performance of securities of companies in telecommunication services and materials sectors. The Fund benefited most from positive performance of securities of companies in the United Kingdom, Bahamas, and Brazil. The Fund was hurt most from negative performance of securities of companies in Israel, Spain, and Belgium.
At the single stock level, the Fund benefited most from exposure to Teekay LNG Partners L.P. (portfolio average weight of 3.42%), Companhia De Bebidas das Americas American Depositary Receipt ("ADR") (portfolio average weight of 1.16%), and Enbridge, Inc. (portfolio average weight of 2.06%). The leading detractors to the Fund were Partner Communications Co. Ltd. ADR (no longer held at April 30, 2012), Telefonica SA ADR (portfolio average weight of 4.18%), and Delhaize Group SA ADR (portfolio average weight of 1.24%).
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Telecommunication Services | 19.3 | ||||||
Energy | 16.6 | ||||||
Financials | 16.3 | ||||||
Money Market Fund | 12.8 | ||||||
Health Care | 11.9 | ||||||
Consumer Staples | 11.8 | ||||||
Consumer Discretionary | 8.1 | ||||||
Materials | 7.6 | ||||||
Industrials | 3.6 | ||||||
Information Technology | 3.4 | ||||||
Utilities | 1.4 | ||||||
Liabilities in excess of other assets | (12.8 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Large-Cap Value | 43.8 | ||||||
Large-Cap Growth | 37.4 | ||||||
Mid-Cap Value | 16.6 | ||||||
Small-Cap Value | 1.2 | ||||||
Mid-Cap Growth | 1.0 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
Telefonica SA ADR | 6.3 | ||||||
Teekay LNG Partners LP | 3.5 | ||||||
Vale SA ADR | 3.2 | ||||||
Corpbanca ADR | 3.0 | ||||||
AstraZeneca PLC ADR | 2.9 | ||||||
Philippine Long Distance Telephone Co. ADR | 2.9 | ||||||
GlaxoSmithKline PLC ADR | 2.6 | ||||||
Vodafone Group PLC ADR | 2.5 | ||||||
Shaw Communications, Inc., Class B | 2.3 | ||||||
Thomson Reuters Corp. | 2.2 | ||||||
Total | 31.4 |
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, 2012 | ||||||||||||||||||||||
Avg Ann††† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann††† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
International Dividend AchieversTM Index | (4.93 | )% | 19.58 | % | (1.29 | )% | 4.36 | % | 32.65 | % | |||||||||||||
Dow Jones EPAC Select Dividend Index††† | (12.23 | )% | 19.44 | % | (3.55 | )% | N/A | N/A | |||||||||||||||
MSCI EAFE® Value Index | (15.59 | )% | 9.33 | % | (6.61 | )% | 1.26 | % | 8.69 | % | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 4.21 | % | 31.64 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | (5.87 | )% | 18.72 | % | (2.10 | )% | 3.58 | % | 26.19 | % | |||||||||||||
Share Price Return | (5.97 | )% | 18.72 | % | (2.08 | )% | 3.59 | % | 26.35 | % |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.58%. The Financial Highlights section of this Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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, 479 and 500 common stocks, respectively.
† Fund and underlying Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from the closest month-end to the Fund's inception date.
†† Average annualized.
13
Frequency Distribution of Discounts & Premiums
Since Inception through April 30, 2012
Closing Price Above NAV (bps) | |||||||||||||||||||||||||||||||||||||||
Ticker | Fund Name | Inception | Trading Days | 0-24 | 25-49 | 50-99 | 100-149 | 150-199 | 200+ | ||||||||||||||||||||||||||||||
PKW | PowerShares BuybackTM Achievers Portfolio | 12/20/06 | 1,350 | 609 | 38 | 8 | 1 | 2 | 1 | ||||||||||||||||||||||||||||||
PFM | PowerShares Dividend AchieversTM Portfolio | 09/15/05 | 1,669 | 837 | 66 | 16 | 3 | — | 3 | ||||||||||||||||||||||||||||||
PGF | PowerShares Financial Preferred Portfolio | 12/01/06 | 1,363 | 558 | 209 | 90 | 29 | 24 | 68 | ||||||||||||||||||||||||||||||
PEY | PowerShares High Yield Equity Dividend AchieversTM Portfolio | 12/09/04 | 1,862 | 755 | 58 | 8 | 6 | — | 1 | ||||||||||||||||||||||||||||||
PID | PowerShares International Dividend AchieverTMs Portfolio | 09/15/05 | 1,669 | 890 | 69 | 17 | 4 | 2 | 2 |
14
Closing Price Below NAV (bps) | |||||||||||||||||||||||||||
Ticker | 0-24 | -25-49 | -50-99 | -100-149 | -150-199 | -200+ | |||||||||||||||||||||
PKW | 676 | 11 | 4 | — | — | — | |||||||||||||||||||||
PFM | 729 | 12 | 2 | 1 | — | — | |||||||||||||||||||||
PGF | 337 | 27 | 13 | 3 | 2 | 3 | |||||||||||||||||||||
PEY | 925 | 92 | 14 | 1 | 1 | 1 | |||||||||||||||||||||
PID | 559 | 76 | 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, 2012.
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, 2011 | Ending Account Value April 30, 2012 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period(1) | ||||||||||||||||
PowerShares Buyback AchieversTM Portfolio (PKW) Actual | $ | 1,000.00 | $ | 1,138.28 | 0.71 | % | $ | 3.77 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.33 | 0.71 | % | $ | 3.57 | |||||||||||
PowerShares Dividend AchieversTM Portfolio (PFM) Actual | $ | 1,000.00 | $ | 1,097.99 | 0.60 | % | $ | 3.13 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.88 | 0.60 | % | $ | 3.02 | |||||||||||
PowerShares Dynamic Financial Preferred Portfolio (PGF) Actual | $ | 1,000.00 | $ | 1,087.50 | 0.66 | % | $ | 3.43 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.58 | 0.66 | % | $ | 3.32 |
16
Fees and Expenses (Continued)
Beginning Account Value November 1, 2011 | Ending Account Value April 30, 2012 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period(1) | ||||||||||||||||
PowerShares High Yield Equity Dividend AchieversTM Portfolio (PEY) Actual | $ | 1,000.00 | $ | 1,073.19 | 0.60 | % | $ | 3.09 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.88 | 0.60 | % | $ | 3.02 | |||||||||||
PowerShares International Dividend AchieversTM Portfolio (PID) Actual | $ | 1,000.00 | $ | 1,027.04 | 0.54 | % | $ | 2.72 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.18 | 0.54 | % | $ | 2.72 |
(1) Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six-month period ended April 30, 2012. Expenses are calculated by multiplying the Fund's annualized expense ratio by the average account value for the period, then multiplying the result by 182/366. 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 (PKW)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.0% | |||||||||||
Consumer Discretionary—32.6% | |||||||||||
5,309 | Aaron's, Inc. | $ | 144,246 | ||||||||
4,930 | Advance Auto Parts, Inc. | 452,574 | |||||||||
5,418 | Aeropostale, Inc.(a) | 120,171 | |||||||||
646 | America's Car-Mart, Inc.(a) | 29,677 | |||||||||
2,292 | Ameristar Casinos, Inc. | 41,210 | |||||||||
3,560 | ANN, Inc.(a) | 98,576 | |||||||||
9,614 | Apollo Group, Inc., Class A(a) | 338,605 | |||||||||
9,925 | AutoNation, Inc.(a) | 343,206 | |||||||||
2,672 | AutoZone, Inc.(a) | 1,058,540 | |||||||||
2,945 | Bally Technologies, Inc.(a) | 142,980 | |||||||||
16,090 | Bed Bath & Beyond, Inc.(a) | 1,132,575 | |||||||||
26,181 | Best Buy Co., Inc. | 577,815 | |||||||||
5,461 | Big Lots, Inc.(a) | 200,091 | |||||||||
989 | Blue Nile, Inc.(a) | 29,947 | |||||||||
4,844 | Brinker International, Inc. | 152,441 | |||||||||
1,458 | Build-A-Bear Workshop, Inc.(a) | 6,576 | |||||||||
19,937 | Cablevision Systems Corp., Class A | 295,466 | |||||||||
1,124 | Capella Education Co.(a) | 36,766 | |||||||||
5,931 | Career Education Corp.(a) | 42,288 | |||||||||
1,295 | CEC Entertainment, Inc. | 49,495 | |||||||||
3,635 | Cheesecake Factory, Inc. (The)(a) | 114,502 | |||||||||
11,543 | Chico's FAS, Inc. | 177,300 | |||||||||
3,421 | Dillard's, Inc., Class A | 220,860 | |||||||||
50,566 | DIRECTV, Class A(a) | 2,491,387 | |||||||||
9,779 | Discovery Communications, Inc., Class A(a) | 532,173 | |||||||||
4,041 | E.W. Scripps Co. (The), Class A(a) | 37,016 | |||||||||
10,043 | Education Management Corp.(a) | 124,533 | |||||||||
7,719 | Family Dollar Stores, Inc. | 521,418 | |||||||||
2,602 | Fred's, Inc., Class A | 37,261 | |||||||||
9,116 | GameStop Corp., Class A(a) | 207,480 | |||||||||
32,113 | Gap, Inc. (The) | 915,220 | |||||||||
9,140 | Hasbro, Inc. | 335,804 | |||||||||
2,792 | hhgregg, Inc.(a) | 29,204 | |||||||||
1,712 | Hibbett Sports, Inc.(a) | 102,241 | |||||||||
104,230 | Home Depot, Inc. (The) | 5,398,072 | |||||||||
2,949 | Hot Topic, Inc. | 28,900 | |||||||||
11,538 | Hyatt Hotels Corp., Class A(a) | 496,480 | |||||||||
32,575 | Interpublic Group of Cos., Inc. (The) | 384,711 | |||||||||
1,933 | ITT Educational Services, Inc.(a) | 127,617 | |||||||||
14,669 | J.C. Penney Co., Inc. | 528,964 | |||||||||
3,221 | Jack in the Box, Inc.(a) | 73,181 | |||||||||
1,654 | JAKKS Pacific, Inc. | 31,542 | |||||||||
6,242 | Jones Group, Inc. (The) | 70,035 | |||||||||
17,852 | Kohl's Corp. | 894,921 | |||||||||
9,373 | Leggett & Platt, Inc. | 204,050 | |||||||||
8,098 | Liberty Media Corp., Class A(a) | 708,089 | |||||||||
20,139 | Limited Brands, Inc. | 1,000,908 | |||||||||
86,391 | Lowe's Cos., Inc. | 2,718,725 | |||||||||
22,618 | Marriott International, Inc., Class A | 884,138 | |||||||||
24,227 | Mattel, Inc. | 814,027 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
325 | NVR, Inc.(a) | $ | 254,780 | ||||||||
19,438 | Omnicom Group, Inc. | 997,364 | |||||||||
8,505 | O'Reilly Automotive, Inc.(a) | 896,937 | |||||||||
1,430 | P.F. Chang's China Bistro, Inc. | 56,757 | |||||||||
1,588 | Papa John's International, Inc.(a) | 63,965 | |||||||||
1,328 | PetMed Express, Inc. | 17,888 | |||||||||
7,673 | PetSmart, Inc. | 447,029 | |||||||||
7,807 | Pier 1 Imports, Inc.(a) | 134,124 | |||||||||
8,005 | RadioShack Corp. | 41,466 | |||||||||
1,073 | Red Robin Gourmet Burgers, Inc.(a) | 38,263 | |||||||||
4,383 | Rent-A-Center, Inc. | 149,942 | |||||||||
2,428 | Scholastic Corp. | 74,175 | |||||||||
15,953 | Service Corp. International | 184,736 | |||||||||
2,201 | Stage Stores, Inc. | 33,609 | |||||||||
895 | Strayer Education, Inc. | 88,319 | |||||||||
48,089 | Target Corp. | 2,786,277 | |||||||||
22,073 | Time Warner Cable, Inc. | 1,775,773 | |||||||||
70,869 | Time Warner, Inc. | 2,654,753 | |||||||||
3,921 | Tupperware Brands Corp. | 244,239 | |||||||||
10,228 | Urban Outfitters, Inc.(a) | 296,203 | |||||||||
3,160 | Valassis Communications, Inc.(a) | 63,200 | |||||||||
35,448 | Viacom, Inc., Class B | 1,644,433 | |||||||||
21,351 | Virgin Media, Inc. | 524,381 | |||||||||
127,845 | Walt Disney Co. (The) | 5,511,398 | |||||||||
3,057 | Warnaco Group, Inc. (The)(a) | 161,899 | |||||||||
527 | Washington Post Co. (The), Class B | 199,296 | |||||||||
27,831 | Wendy's Co. (The) | 135,537 | |||||||||
6,581 | Wet Seal, Inc. (The), Class A(a) | 21,651 | |||||||||
10,095 | Wyndham Worldwide Corp. | 508,182 | |||||||||
45,510,580 | |||||||||||
Consumer Staples—4.7% | |||||||||||
2,108 | Central Garden & Pet Co., Class A(a) | 22,534 | |||||||||
9,079 | Clorox Co. (The) | 636,438 | |||||||||
21,405 | Coca-Cola Enterprises, Inc. | 644,719 | |||||||||
29,267 | ConAgra Foods, Inc. | 755,674 | |||||||||
15,356 | Dr Pepper Snapple Group, Inc. | 623,146 | |||||||||
4,757 | Energizer Holdings, Inc.(a) | 339,317 | |||||||||
41,985 | Kroger Co. (The) | 976,991 | |||||||||
9,445 | Lorillard, Inc. | 1,277,814 | |||||||||
17,309 | Safeway, Inc. | 351,892 | |||||||||
40,724 | Sara Lee Corp. | 897,557 | |||||||||
939 | USANA Health Sciences, Inc.(a) | 39,156 | |||||||||
6,565,238 | |||||||||||
Energy—6.0% | |||||||||||
94,726 | ConocoPhillips(a)(b) | 5,205,194 | |||||||||
7,365 | ConocoPhillips | 527,555 | |||||||||
29,554 | Devon Energy Corp. | 2,064,347 | |||||||||
4,972 | Dresser-Rand Group, Inc.(a) | 242,037 | |||||||||
2,408 | Green Plains Renewable Energy, Inc.(a) | 19,240 | |||||||||
1 | Phillips 66(a) | 17 |
See Notes to Financial Statements.
18
Schedule of Investments (Continued)
PowerShares Buyback AchieversTM Portfolio (PKW)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
635 | REX American Resources Corp.(a) | $ | 17,615 | ||||||||
7,035 | Sunoco, Inc. | 346,755 | |||||||||
8,422,760 | |||||||||||
Financials—7.7% | |||||||||||
34,874 | Allstate Corp. (The) | 1,162,350 | |||||||||
6,792 | American Financial Group, Inc. | 264,345 | |||||||||
16,772 | Ameriprise Financial, Inc. | 909,210 | |||||||||
4,811 | Aspen Insurance Holdings Ltd. (Bermuda) | 136,248 | |||||||||
6,329 | Assurant, Inc. | 255,312 | |||||||||
17,237 | CapitalSource, Inc. | 111,179 | |||||||||
18,497 | Chubb Corp. (The) | 1,351,576 | |||||||||
1,887 | Credit Acceptance Corp.(a) | 177,435 | |||||||||
1,290 | eHealth, Inc.(a) | 22,859 | |||||||||
2,468 | Employers Holdings, Inc. | 42,746 | |||||||||
2,878 | Endurance Specialty Holdings Ltd. (Bermuda) | 115,638 | |||||||||
7,258 | HCC Insurance Holdings, Inc. | 231,966 | |||||||||
806 | Infinity Property & Casualty Corp. | 43,048 | |||||||||
5,723 | iStar Financial, Inc. REIT(a) | 39,603 | |||||||||
2,570 | KBW, Inc. | 43,793 | |||||||||
10,258 | Legg Mason, Inc. | 267,426 | |||||||||
4,174 | Montpelier Re Holdings Ltd. (Bermuda) | 85,650 | |||||||||
15,514 | Moody's Corp. | 635,298 | |||||||||
12,569 | NASDAQ OMX Group, Inc. (The)(a) | 308,820 | |||||||||
2,914 | National Financial Partners Corp.(a) | 42,982 | |||||||||
1,000 | Navigators Group, Inc. (The)(a) | 47,500 | |||||||||
6,903 | Northwest Bancshares, Inc. | 85,045 | |||||||||
2,965 | Oriental Financial Group, Inc. | 35,046 | |||||||||
3,224 | Oritani Financial Corp. | 47,780 | |||||||||
1,433 | Piper Jaffray Cos., Inc.(a) | 34,750 | |||||||||
46,801 | Progressive Corp. (The) | 996,861 | |||||||||
3,589 | RenaissanceRe Holdings Ltd. (Bermuda) | 280,157 | |||||||||
734 | Territorial Bancorp, Inc. | 15,942 | |||||||||
7,280 | Torchmark Corp. | 354,609 | |||||||||
26,901 | Travelers Cos., Inc. (The) | 1,730,272 | |||||||||
20,607 | Unum Group | 489,210 | |||||||||
9,127 | W.R. Berkley Corp. | 343,723 | |||||||||
1,056 | World Acceptance Corp.(a) | 70,235 | |||||||||
10,778,614 | |||||||||||
Health Care—14.8% | |||||||||||
25,707 | Aetna, Inc. | 1,132,136 | |||||||||
18,954 | AmerisourceBergen Corp. | 705,278 | |||||||||
59,000 | Amgen, Inc. | 4,195,490 | |||||||||
15,054 | Becton, Dickinson and Co. | 1,180,986 | |||||||||
6,062 | C.R. Bard, Inc. | 599,896 | |||||||||
30,763 | Celgene Corp.(a) | 2,243,238 | |||||||||
3,442 | Charles River Laboratories International, Inc.(a) | 122,294 | |||||||||
1,459 | Chemed Corp. | 88,036 | |||||||||
4,329 | Covance, Inc.(a) | 202,424 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
3,531 | Enzon Pharmaceuticals, Inc.(a) | $ | 21,998 | ||||||||
33,142 | Express Scripts Holding Co.(a) | 1,848,992 | |||||||||
18,965 | Forest Laboratories, Inc.(a) | 660,551 | |||||||||
48,617 | Gilead Sciences, Inc.(a) | 2,528,570 | |||||||||
6,105 | Health Net, Inc.(a) | 217,399 | |||||||||
1,903 | Integra LifeSciences Holdings Corp.(a) | 70,849 | |||||||||
3,327 | LifePoint Hospitals, Inc.(a) | 129,820 | |||||||||
6,310 | Lincare Holdings, Inc. | 153,964 | |||||||||
1,959 | Magellan Health Services, Inc.(a) | 86,745 | |||||||||
1,987 | Maxygen, Inc.(a) | 11,227 | |||||||||
5,324 | Myriad Genetics, Inc.(a) | 138,477 | |||||||||
1,356 | Obagi Medical Products, Inc.(a) | 17,791 | |||||||||
7,738 | Patterson Cos., Inc. | 263,788 | |||||||||
11,582 | Quest Diagnostics, Inc. | 668,166 | |||||||||
8,990 | Select Medical Holdings Corp.(a) | 77,044 | |||||||||
29,069 | Tenet Healthcare Corp.(a) | 150,868 | |||||||||
7,676 | Varian Medical Systems, Inc.(a) | 486,812 | |||||||||
6,674 | ViroPharma, Inc.(a) | 145,159 | |||||||||
25,395 | WellPoint, Inc. | 1,722,289 | |||||||||
12,691 | Zimmer Holdings, Inc. | 798,645 | |||||||||
20,668,932 | |||||||||||
Industrials—10.5% | |||||||||||
5,034 | Aircastle Ltd. (Bermuda) | 61,163 | |||||||||
8,964 | Cintas Corp. | 351,120 | |||||||||
810 | Consolidated Graphics, Inc.(a) | 32,392 | |||||||||
8,862 | Copart, Inc.(a) | 234,045 | |||||||||
6,615 | Corrections Corp. of America(a) | 191,107 | |||||||||
9,575 | Covanta Holding Corp. | 153,679 | |||||||||
71,280 | CSX Corp. | 1,590,257 | |||||||||
12,169 | Fluor Corp. | 702,760 | |||||||||
2,928 | FTI Consulting, Inc.(a) | 106,403 | |||||||||
26,868 | General Dynamics Corp. | 1,813,590 | |||||||||
12,247 | Iron Mountain, Inc. | 371,941 | |||||||||
7,808 | J.B. Hunt Transport Services, Inc. | 432,017 | |||||||||
5,802 | Knight Transportation, Inc. | 95,269 | |||||||||
6,951 | L-3 Communications Holdings, Inc. | 511,176 | |||||||||
22,342 | Lockheed Martin Corp. | 2,022,845 | |||||||||
21,282 | Norfolk Southern Corp. | 1,552,096 | |||||||||
17,716 | Northrop Grumman Corp. | 1,121,068 | |||||||||
10,251 | Parker Hannifin Corp. | 898,910 | |||||||||
13,415 | R.R. Donnelley & Sons Co. | 167,822 | |||||||||
3,467 | RailAmerica, Inc.(a) | 80,365 | |||||||||
24,112 | Raytheon Co. | 1,305,424 | |||||||||
4,762 | Shaw Group, Inc. (The)(a) | 144,146 | |||||||||
4,040 | SkyWest, Inc. | 36,320 | |||||||||
4,668 | Taser International, Inc.(a) | 21,473 | |||||||||
2,916 | TrueBlue, Inc.(a) | 50,330 | |||||||||
3,151 | United Stationers, Inc. | 89,362 | |||||||||
10,961 | Verisk Analytics, Inc., Class A(a) | 536,541 | |||||||||
14,673,621 |
See Notes to Financial Statements.
19
Schedule of Investments (Continued)
PowerShares Buyback AchieversTM Portfolio (PKW)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
Information Technology—20.3% | |||||||||||
81,616 | Activision Blizzard, Inc. | $ | 1,050,398 | ||||||||
11,998 | Amphenol Corp., Class A | 697,564 | |||||||||
5,243 | AOL, Inc.(a) | 131,285 | |||||||||
4,681 | Applied Micro Circuits Corp.(a) | 26,120 | |||||||||
4,294 | Benchmark Electronics, Inc.(a) | 68,189 | |||||||||
1,839 | CACI International, Inc., Class A(a) | 112,418 | |||||||||
4,486 | Cirrus Logic, Inc.(a) | 122,827 | |||||||||
1,703 | Coherent, Inc.(a) | 89,578 | |||||||||
1,445 | Comtech Telecommunications Corp. | 44,679 | |||||||||
7,389 | CoreLogic, Inc.(a) | 123,396 | |||||||||
10,648 | Cypress Semiconductor Corp.(a) | 165,044 | |||||||||
126,167 | Dell, Inc.(a) | 2,065,354 | |||||||||
2,643 | Digital River, Inc.(a) | 49,715 | |||||||||
2,513 | Fair Isaac Corp. | 107,808 | |||||||||
9,824 | Fiserv, Inc.(a) | 690,529 | |||||||||
10,107 | GT Advanced Technologies, Inc.(a) | 65,797 | |||||||||
8,005 | Harris Corp. | 364,548 | |||||||||
132,729 | Hewlett-Packard Co. | 3,286,370 | |||||||||
5,910 | IAC/InterActiveCorp | 284,566 | |||||||||
3,242 | Insight Enterprises, Inc.(a) | 65,845 | |||||||||
10,501 | Integrated Device Technology, Inc.(a) | 71,092 | |||||||||
251,938 | Intel Corp. | 7,155,039 | |||||||||
34,505 | International Business Machines Corp. | 7,145,295 | |||||||||
5,864 | Lender Processing Services, Inc. | 155,689 | |||||||||
39,736 | LSI Corp.(a) | 319,477 | |||||||||
1,361 | Manhattan Associates, Inc.(a) | 68,254 | |||||||||
2,339 | Monolithic Power Systems, Inc.(a) | 48,464 | |||||||||
5,005 | Novellus Systems, Inc.(a) | 233,984 | |||||||||
3,183 | Plantronics, Inc. | 121,973 | |||||||||
2,535 | Plexus Corp.(a) | 82,058 | |||||||||
5,745 | Quest Software, Inc.(a) | 133,686 | |||||||||
25,814 | SAIC, Inc. | 313,898 | |||||||||
3,562 | STEC, Inc.(a) | 29,529 | |||||||||
754 | Supertex, Inc.(a) | 15,434 | |||||||||
58,755 | Symantec Corp.(a) | 970,633 | |||||||||
2,468 | Synaptics, Inc.(a) | 75,792 | |||||||||
2,888 | Tech Data Corp.(a) | 155,346 | |||||||||
1,747 | TNS, Inc.(a) | 35,639 | |||||||||
1,922 | Tyler Technologies, Inc.(a) | 76,784 | |||||||||
10,117 | VeriSign, Inc. | 415,910 | |||||||||
1,816 | Volterra Semiconductor Corp.(a) | 59,728 | |||||||||
2,691 | Websense, Inc.(a) | 55,811 | |||||||||
41,588 | Western Union Co. (The) | 764,387 | |||||||||
1,972 | XO Group, Inc.(a) | 18,280 | |||||||||
3,882 | Zebra Technologies Corp., Class A(a) | 150,583 | |||||||||
28,284,795 | |||||||||||
Materials—2.9% | |||||||||||
2,214 | A. Schulman, Inc. | 54,487 | |||||||||
5,160 | Airgas, Inc. | 472,862 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
11,172 | Ball Corp. | $ | 466,543 | ||||||||
4,332 | CF Industries Holdings, Inc. | 836,336 | |||||||||
10,443 | Crown Holdings, Inc.(a) | 386,182 | |||||||||
2,055 | Myers Industries, Inc. | 33,969 | |||||||||
880 | NewMarket Corp. | 196,434 | |||||||||
9,951 | PPG Industries, Inc. | 1,047,243 | |||||||||
1,134 | Schweitzer-Mauduit International, Inc. | 76,908 | |||||||||
4,353 | Scotts Miracle-Gro Co. (The), Class A | 228,097 | |||||||||
4,781 | Silgan Holdings, Inc. | 209,742 | |||||||||
1,073 | TPC Group, Inc.(a) | 45,045 | |||||||||
4,053,848 | |||||||||||
Telecommunication Services—0.2% | |||||||||||
146,993 | Clearwire Corp., Class A(a) | 215,345 | |||||||||
3,156 | General Communication, Inc., Class A(a) | 23,985 | |||||||||
3,460 | Premiere Global Services, Inc.(a) | 30,967 | |||||||||
270,297 | |||||||||||
Utilities—0.3% | |||||||||||
1,042 | CH Energy Group, Inc. | 68,376 | |||||||||
2,993 | El Paso Electric Co. | 91,706 | |||||||||
15,312 | NRG Energy, Inc.(a) | 260,304 | |||||||||
420,386 | |||||||||||
Total Common Stocks and Other Equity Interests (Cost $130,773,747) | 139,649,071 | ||||||||||
Money Market Fund—0.1% | |||||||||||
123,213 | Goldman Sachs Financial Square Prime Obligations - Institutional Share Class (Cost $123,213) | 123,213 | |||||||||
Total Investments (Cost $130,896,960)—100.1% | 139,772,284 | ||||||||||
Liabilities in excess of other assets—(0.1%) | (130,902 | ) | |||||||||
Net Assets—100.0% | $ | 139,641,382 |
Investment Abbreviations:
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) When-issued security.
See Notes to Financial Statements.
20
Schedule of Investments
PowerShares Dividend AchieversTM Portfolio (PFM)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.0% | |||||||||||
Consumer Discretionary—9.2% | |||||||||||
7,644 | Family Dollar Stores, Inc. | $ | 516,352 | ||||||||
10,657 | Genuine Parts Co. | 690,360 | |||||||||
3,648 | John Wiley & Sons, Inc., Class A | 164,853 | |||||||||
9,305 | Leggett & Platt, Inc. | 202,570 | |||||||||
85,609 | Lowe's Cos., Inc. | 2,694,115 | |||||||||
2,044 | Matthews International Corp., Class A | 61,320 | |||||||||
72,827 | McDonald's Corp. | 7,096,991 | |||||||||
20,540 | McGraw-Hill Cos., Inc. (The) | 1,009,952 | |||||||||
2,742 | Meredith Corp. | 79,052 | |||||||||
31,578 | NIKE, Inc., Class B | 3,532,631 | |||||||||
4,242 | Polaris Industries, Inc. | 336,985 | |||||||||
15,227 | Ross Stores, Inc. | 937,831 | |||||||||
47,583 | Target Corp. | 2,756,959 | |||||||||
50,326 | TJX Cos., Inc. (The) | 2,099,097 | |||||||||
7,472 | VF Corp. | 1,136,118 | |||||||||
23,315,186 | |||||||||||
Consumer Staples—24.8% | |||||||||||
138,501 | Altria Group, Inc. | 4,461,117 | |||||||||
47,290 | Archer-Daniels-Midland Co. | 1,457,951 | |||||||||
26,194 | Avon Products, Inc. | 565,790 | |||||||||
5,719 | Brown-Forman Corp., Class B | 493,836 | |||||||||
2,579 | Casey's General Stores, Inc. | 145,327 | |||||||||
9,468 | Church & Dwight Co., Inc. | 480,974 | |||||||||
9,058 | Clorox Co. (The) | 634,966 | |||||||||
153,891 | Coca-Cola Co. (The) | 11,744,961 | |||||||||
32,960 | Colgate-Palmolive Co. | 3,261,062 | |||||||||
18,737 | Hormel Foods Corp. | 544,497 | |||||||||
8,156 | J.M. Smucker Co. (The) | 649,462 | |||||||||
25,629 | Kimberly-Clark Corp. | 2,011,108 | |||||||||
1,896 | Lancaster Colony Corp. | 123,638 | |||||||||
8,150 | McCormick & Co., Inc. | 455,667 | |||||||||
4,128 | Nu Skin Enterprises, Inc., Class A | 220,022 | |||||||||
107,488 | PepsiCo, Inc. | 7,094,208 | |||||||||
182,778 | Procter & Gamble Co. (The) | 11,631,992 | |||||||||
1,616 | Sanderson Farms, Inc. | 83,402 | |||||||||
42,008 | Sysco Corp. | 1,214,031 | |||||||||
2,583 | Tootsie Roll Industries, Inc. | 61,501 | |||||||||
1,630 | Universal Corp. | 74,703 | |||||||||
5,598 | Vector Group Ltd. | 97,125 | |||||||||
57,418 | Walgreen Co. | 2,013,075 | |||||||||
222,195 | Wal-Mart Stores, Inc. | 13,089,508 | |||||||||
62,609,923 | |||||||||||
Energy—16.5% | |||||||||||
6,919 | Buckeye Partners LP | 390,578 | |||||||||
1,877 | CARBO Ceramics, Inc. | 157,837 | |||||||||
122,729 | Chevron Corp. | 13,078,002 | |||||||||
97,478 | ConocoPhillips(a)(b) | 5,356,416 | |||||||||
4,809 | Energen Corp. | 251,895 | |||||||||
60,126 | Enterprise Products Partners LP | 3,098,894 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
19,429 | EOG Resources, Inc. | $ | 2,133,499 | ||||||||
141,254 | Exxon Mobil Corp. | 12,195,870 | |||||||||
7,265 | Helmerich & Payne, Inc. | 373,348 | |||||||||
8,755 | Inergy LP | 170,635 | |||||||||
22,855 | Kinder Morgan Energy Partners LP | 1,884,166 | |||||||||
7,976 | Magellan Midstream Partners LP | 564,860 | |||||||||
14,123 | Murphy Oil Corp. | 776,341 | |||||||||
5,217 | NuStar Energy LP | 286,883 | |||||||||
10,506 | Plains All American Pipeline LP | 860,757 | |||||||||
3,865 | TC Pipelines LP | 169,558 | |||||||||
41,749,539 | |||||||||||
Financials—5.4% | |||||||||||
1,754 | 1st Source Corp. | 39,798 | |||||||||
32,757 | Aflac, Inc. | 1,475,375 | |||||||||
812 | Arrow Financial Corp. | 19,439 | |||||||||
1,038 | BancFirst Corp. | 43,285 | |||||||||
2,347 | Bank of the Ozarks, Inc. | 72,522 | |||||||||
8,742 | Brown & Brown, Inc. | 235,772 | |||||||||
18,251 | Chubb Corp. (The) | 1,333,601 | |||||||||
10,842 | Cincinnati Financial Corp. | 386,192 | |||||||||
6,135 | Commerce Bancshares, Inc. | 246,013 | |||||||||
2,595 | Community Bank System, Inc. | 72,971 | |||||||||
1,064 | Community Trust Bancorp, Inc. | 33,995 | |||||||||
4,989 | Corporate Office Properties Trust REIT | 117,491 | |||||||||
4,185 | Cullen/Frost Bankers, Inc. | 246,748 | |||||||||
3,701 | Delphi Financial Group, Inc., Class A | 168,099 | |||||||||
8,534 | Eaton Vance Corp. | 224,444 | |||||||||
3,410 | Erie Indemnity Co., Class A | 262,229 | |||||||||
2,244 | Essex Property Trust, Inc. REIT | 354,485 | |||||||||
4,217 | Federal Realty Investment Trust REIT | 424,483 | |||||||||
911 | First Financial Corp. | 27,330 | |||||||||
15,089 | Franklin Resources, Inc. | 1,893,820 | |||||||||
7,211 | HCC Insurance Holdings, Inc. | 230,464 | |||||||||
27,389 | HCP, Inc. REIT | 1,135,274 | |||||||||
3,649 | Mercury General Corp. | 164,898 | |||||||||
7,058 | National Retail Properties, Inc. REIT | 193,248 | |||||||||
18,061 | Old Republic International Corp. | 179,707 | |||||||||
26,306 | People's United Financial, Inc. | 324,616 | |||||||||
3,278 | Prosperity Bancshares, Inc. | 152,919 | |||||||||
8,968 | Realty Income Corp. REIT | 352,801 | |||||||||
1,455 | Republic Bancorp, Inc., Class A | 34,236 | |||||||||
1,498 | RLI Corp. | 103,182 | |||||||||
12,562 | SEI Investments Co. | 253,627 | |||||||||
11,187 | Senior Housing Properties Trust REIT | 247,009 | |||||||||
1,202 | Southside Bancshares, Inc. | 24,521 | |||||||||
3,243 | StanCorp Financial Group, Inc. | 124,466 | |||||||||
18,065 | T. Rowe Price Group, Inc. | 1,140,172 | |||||||||
5,624 | Tanger Factory Outlet Centers, Inc. REIT | 176,144 | |||||||||
776 | Tompkins Financial Corp. | 29,372 | |||||||||
2,616 | UMB Financial Corp. | 125,699 |
See Notes to Financial Statements.
21
Schedule of Investments (Continued)
PowerShares Dividend AchieversTM Portfolio (PFM)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
3,667 | United Bankshares, Inc. | $ | 96,919 | ||||||||
868 | Universal Health Realty Income Trust REIT | 35,102 | |||||||||
1,464 | Urstadt Biddle Properties, Inc., Class A REIT | 28,167 | |||||||||
2,706 | W.P. Carey & Co. LLC | 127,480 | |||||||||
9,054 | W.R. Berkley Corp. | 340,974 | |||||||||
4,507 | Washington REIT | 133,182 | |||||||||
1,982 | Westamerica Bancorp | 90,914 | |||||||||
13,523,185 | |||||||||||
Health Care—10.3% | |||||||||||
107,131 | Abbott Laboratories | 6,648,550 | |||||||||
14,925 | Becton, Dickinson and Co. | 1,170,866 | |||||||||
5,954 | C.R. Bard, Inc. | 589,208 | |||||||||
24,789 | Cardinal Health, Inc. | 1,047,831 | |||||||||
184,105 | Johnson & Johnson | 11,983,395 | |||||||||
77,051 | Medtronic, Inc. | 2,943,348 | |||||||||
4,571 | Owens & Minor, Inc. | 133,656 | |||||||||
27,498 | Stryker Corp. | 1,500,566 | |||||||||
2,298 | West Pharmaceutical Services, Inc. | 103,180 | |||||||||
26,120,600 | |||||||||||
Industrials—12.8% | |||||||||||
48,685 | 3M Co. | 4,350,492 | |||||||||
2,993 | A.O. Smith Corp. | 142,467 | |||||||||
3,815 | ABM Industries, Inc. | 88,813 | |||||||||
3,786 | Brady Corp., Class A | 117,479 | |||||||||
12,277 | C.H. Robinson Worldwide, Inc. | 733,428 | |||||||||
3,847 | Carlisle Cos., Inc. | 211,816 | |||||||||
46,018 | Caterpillar, Inc. | 4,729,270 | |||||||||
8,927 | Cintas Corp. | 349,670 | |||||||||
3,439 | CLARCOR, Inc. | 165,141 | |||||||||
10,457 | Donaldson Co., Inc. | 362,440 | |||||||||
13,171 | Dover Corp. | 825,295 | |||||||||
51,731 | Emerson Electric Co. | 2,717,947 | |||||||||
16,790 | Expeditors International of Washington, Inc. | 671,600 | |||||||||
23,438 | Fastenal Co. | 1,097,367 | |||||||||
1,542 | Franklin Electric Co., Inc. | 77,331 | |||||||||
26,828 | General Dynamics Corp. | 1,810,890 | |||||||||
1,462 | Gorman-Rupp Co. (The) | 42,106 | |||||||||
3,884 | Graco, Inc. | 207,056 | |||||||||
33,247 | Illinois Tool Works, Inc. | 1,907,713 | |||||||||
1,829 | McGrath Rentcorp | 53,809 | |||||||||
2,452 | Mine Safety Appliances Co. | 104,112 | |||||||||
484 | NACCO Industries, Inc., Class A | 54,919 | |||||||||
4,583 | Nordson Corp. | 247,024 | |||||||||
21,092 | Norfolk Southern Corp. | 1,538,239 | |||||||||
10,179 | Parker Hannifin Corp. | 892,596 | |||||||||
7,262 | Pentair, Inc. | 314,735 | |||||||||
14,338 | Pitney Bowes, Inc. | 245,610 | |||||||||
1,284 | Raven Industries, Inc. | 77,310 | |||||||||
6,581 | Roper Industries, Inc. | 670,604 | |||||||||
12,354 | Stanley Black & Decker, Inc. | 903,819 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
1,354 | Tennant Co. | $ | 59,982 | ||||||||
65,081 | United Technologies Corp. | 5,313,213 | |||||||||
1,719 | Valmont Industries, Inc. | 213,036 | |||||||||
4,979 | W.W. Grainger, Inc. | 1,034,736 | |||||||||
1,957 | Watsco, Inc. | 140,806 | |||||||||
32,472,871 | |||||||||||
Information Technology—6.3% | |||||||||||
33,808 | Automatic Data Processing, Inc. | 1,880,401 | |||||||||
945 | Badger Meter, Inc. | 34,908 | |||||||||
708 | Cass Information Systems, Inc. | 28,993 | |||||||||
4,070 | Diebold, Inc. | 160,562 | |||||||||
2,967 | FactSet Research Systems, Inc. | 311,120 | |||||||||
7,973 | Harris Corp. | 363,090 | |||||||||
59,509 | International Business Machines Corp. | 12,323,124 | |||||||||
6,000 | Jack Henry & Associates, Inc. | 203,760 | |||||||||
16,326 | Linear Technology Corp. | 534,023 | |||||||||
15,839,981 | |||||||||||
Materials—5.3% | |||||||||||
15,627 | Air Products & Chemicals, Inc. | 1,335,952 | |||||||||
6,026 | Albemarle Corp. | 393,498 | |||||||||
4,516 | AptarGroup, Inc. | 246,167 | |||||||||
7,079 | Bemis Co., Inc. | 229,289 | |||||||||
20,449 | Ecolab, Inc. | 1,302,397 | |||||||||
3,384 | H.B. Fuller Co. | 111,334 | |||||||||
38,183 | Monsanto Co. | 2,908,781 | |||||||||
23,969 | Nucor Corp. | 939,824 | |||||||||
9,841 | PPG Industries, Inc. | 1,035,667 | |||||||||
20,897 | Praxair, Inc. | 2,417,783 | |||||||||
4,315 | Royal Gold, Inc. | 267,357 | |||||||||
8,867 | RPM International, Inc. | 235,596 | |||||||||
6,517 | Sherwin-Williams Co. (The) | 783,865 | |||||||||
8,665 | Sigma-Aldrich Corp. | 614,348 | |||||||||
6,799 | Sonoco Products Co. | 225,251 | |||||||||
695 | Stepan Co. | 63,148 | |||||||||
6,091 | Valspar Corp. (The) | 311,555 | |||||||||
13,421,812 | |||||||||||
Telecommunication Services—5.3% | |||||||||||
401,529 | AT&T, Inc. | 13,214,319 | |||||||||
1,127 | Atlantic Tele-Network, Inc. | 38,386 | |||||||||
7,073 | Telephone & Data Systems, Inc. | 171,803 | |||||||||
13,424,508 | |||||||||||
Utilities—4.1% | |||||||||||
1,283 | American States Water Co. | 46,753 | |||||||||
9,471 | Aqua America, Inc. | 215,086 | |||||||||
6,043 | Atmos Energy Corp. | 196,881 | |||||||||
2,744 | Black Hills Corp. | 90,579 | |||||||||
2,907 | California Water Service Group | 52,646 | |||||||||
596 | Connecticut Water Service, Inc. | 16,539 | |||||||||
20,063 | Consolidated Edison, Inc. | 1,192,745 |
See Notes to Financial Statements.
22
Schedule of Investments (Continued)
PowerShares Dividend AchieversTM Portfolio (PFM)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
12,893 | MDU Resources Group, Inc. | $ | 295,765 | ||||||||
1,556 | MGE Energy, Inc. | 71,171 | |||||||||
1,102 | Middlesex Water Co. | 20,453 | |||||||||
5,949 | National Fuel Gas Co. | 281,507 | |||||||||
2,946 | New Jersey Resources Corp. | 127,385 | |||||||||
27,803 | NextEra Energy, Inc. | 1,789,123 | |||||||||
12,330 | Northeast Utilities | 453,374 | |||||||||
1,834 | Northwest Natural Gas Co. | 83,814 | |||||||||
5,129 | Piedmont Natural Gas Co., Inc. | 156,332 | |||||||||
41,750 | PPL Corp. | 1,141,862 | |||||||||
12,051 | Questar Corp. | 238,007 | |||||||||
8,889 | SCANA Corp. | 409,961 | |||||||||
1,305 | SJW Corp. | 31,451 | |||||||||
2,116 | South Jersey Industries, Inc. | 104,213 | |||||||||
58,851 | Southern Co. (The) | 2,703,615 | |||||||||
2,396 | Suburban Propane Partners LP | 101,902 | |||||||||
7,943 | UGI Corp. | 231,777 | |||||||||
2,552 | Unisource Energy Corp. | 92,893 | |||||||||
5,644 | Vectren Corp. | 166,216 | |||||||||
3,640 | WGL Holdings, Inc. | 146,000 | |||||||||
10,458,050 | |||||||||||
Total Common Stocks and Other Equity Interests (Cost $221,318,242) | 252,935,655 | ||||||||||
Money Market Fund—0.0% | |||||||||||
17,796 | Goldman Sachs Financial Square Prime Obligations - Institutional Share Class (Cost $17,796) | 17,796 | |||||||||
Total Investments (Cost $221,336,038)—100.0% | 252,953,451 | ||||||||||
Other assets less liabilities—0.0% | 34,156 | ||||||||||
Net Assets—100.0% | $ | 252,987,607 |
Investment Abbreviations:
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) When-issued security.
See Notes to Financial Statements.
23
Schedule of Investments
PowerShares Financial Preferred Portfolio (PGF)
April 30, 2012
Number of Shares | Value | ||||||||||
Preferred Stocks—99.9% | |||||||||||
Banks—66.0% | |||||||||||
995,318 | Bank of America Corp., 6.20%, Series D | $ | 23,867,726 | ||||||||
1,327,159 | Bank of America Corp., 7.25%, Series J | 32,820,642 | |||||||||
4,457,726 | Bank of America Corp., 8.20%, Series H | 112,869,622 | |||||||||
2,759,382 | Bank of America Corp., 8.63%, Series 8 | 71,081,680 | |||||||||
282,354 | Barclays Bank PLC, 6.63%, Series 2 (United Kingdom) | 6,852,732 | |||||||||
462,432 | Barclays Bank PLC, 7.75%, Series 4 (United Kingdom) | 11,607,043 | |||||||||
2,009,600 | Barclays Bank PLC, 8.13%, Series 5 (United Kingdom) | 51,325,184 | |||||||||
150,000 | BB&T Corp., 5.85%(a) | 3,750,000 | |||||||||
306,921 | Deutsche Bank Capital Funding Trust IX, 6.63% | 7,507,288 | |||||||||
1,033,834 | Deutsche Bank Contingent Capital Trust III, 7.60% | 26,579,872 | |||||||||
600,647 | Deutsche Bank Contingent Capital Trust V, 8.05% | 15,766,984 | |||||||||
1,467,476 | Goldman Sachs Group, Inc. (The), 6.20%, Series B(b) | 36,789,623 | |||||||||
5,441,900 | HSBC Holdings PLC, 8.00%, Series 2 (United Kingdom) | 149,434,574 | |||||||||
3,102,445 | HSBC Holdings PLC, 8.13% (United Kingdom) | 81,718,401 | |||||||||
938,202 | HSBC USA, Inc., 6.50%, Series H(b) | 23,464,432 | |||||||||
2,389,273 | JPMorgan Chase & Co., 8.63%, Series J | 63,578,554 | |||||||||
1,900,000 | PNC Financial Services Group, Inc., 6.13%, Series P(a) | 48,070,000 | |||||||||
944,898 | Royal Bank of Scotland Group PLC, 5.75%, Series L (United Kingdom) | 17,858,572 | |||||||||
391,086 | Royal Bank of Scotland Group PLC, 6.35%, Series N (United Kingdom)(a) | 6,445,097 | |||||||||
436,766 | Royal Bank of Scotland Group PLC, 6.60%, Series S (United Kingdom)(a) | 7,468,699 | |||||||||
369,923 | Royal Bank of Scotland Group PLC, 6.75%, Series Q (United Kingdom)(a) | 6,444,059 | |||||||||
1,841,786 | Royal Bank of Scotland Group PLC, 7.25%, Series T (United Kingdom)(a) | 35,141,277 | |||||||||
1,738,401 | Santander Finance Preferred SA(b) Unipersonal, 10.50%, Series 10 (Spain) | 45,476,570 | |||||||||
800,000 | U.S. Bancorp, 6.00%, Series G(a) | 20,640,000 | |||||||||
1,141,375 | U.S. Bancorp, 6.50%, Series F | 30,885,607 | |||||||||
970,836 | U.S. Bancorp, 7.88%, Series D | 25,513,570 | |||||||||
2,202,753 | Wells Fargo & Co., 8.00%, Series J | 65,069,324 | |||||||||
1,360,098 | Zions Bancorp, 9.50%, Series C | 35,661,770 | |||||||||
1,063,688,902 | |||||||||||
Diversified Financial Services—5.8% | |||||||||||
2,470,611 | Credit Suisse Guernsey, 7.90% | ||||||||||
(Switzerland) | 64,853,539 | ||||||||||
1,161,566 | HSBC Finance Corp., 6.36%, Series B(b) | 28,702,296 | |||||||||
93,555,835 |
Number of Shares | Value | ||||||||||
Preferred Stocks (Continued) | |||||||||||
Insurance—27.1% | |||||||||||
816,477 | Aegon NV, 6.38% (Netherlands) | $ | 19,268,857 | ||||||||
287,303 | Aegon NV, 6.50% (Netherlands) | 6,737,255 | |||||||||
411,360 | Aegon NV, 6.88% (Netherlands) | 9,975,480 | |||||||||
1,331,444 | Aegon NV, 7.25% (Netherlands) | 33,126,327 | |||||||||
557,188 | Axis Capital Holdings Ltd., 6.88%, Series C (Bermuda)(a) | 14,459,029 | |||||||||
575,604 | ING Groep NV, 6.13% (Netherlands) | 12,145,244 | |||||||||
1,357,544 | ING Groep NV, 6.38% (Netherlands) | 29,255,073 | |||||||||
2,723,535 | ING Groep NV, 7.38% (Netherlands) | 65,201,428 | |||||||||
3,560,734 | ING Groep NV, 8.50% (Netherlands) | 90,300,214 | |||||||||
2,418,440 | MetLife, Inc., 6.50%, Series B | 61,186,532 | |||||||||
468,406 | PartnerRe Ltd., 6.75%, Series C | 11,850,672 | |||||||||
753,478 | PartnerRe Ltd., 7.25%, Series E (Bermuda)(b) | 19,997,306 | |||||||||
443,673 | Principal Financial Group, Inc., 6.52%, Series B | 11,442,327 | |||||||||
556,535 | Prudential PLC, 6.50% (United Kingdom) | 14,119,293 | |||||||||
512,291 | Prudential PLC, 6.75% (United Kingdom)(b) | 13,063,420 | |||||||||
398,418 | RenaissanceRe Holdings Ltd., 6.08%, Series C | 9,996,308 | |||||||||
594,777 | RenaissanceRe Holdings Ltd., 6.60%, Series D | 14,958,642 | |||||||||
437,083,407 | |||||||||||
Savings & Loans—1.0% | |||||||||||
564,745 | First Niagara Financial Group, Inc., 8.63%, Series B | 16,004,873 | |||||||||
Total Preferred Stocks (Cost $1,415,728,208) | 1,610,333,017 | ||||||||||
Money Market Fund—0.6% | |||||||||||
9,674,439 | Goldman Sachs Financial Square Prime Obligations - Institutional Share Class (Cost $9,674,439) | 9,674,439 | |||||||||
Total Investments (Cost $1,425,402,647)—100.5% | 1,620,007,456 | ||||||||||
Liabilities in excess of other assets—(0.5%) | (7,309,471 | ) | |||||||||
Net Assets—100.0% | $ | 1,612,697,985 |
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) Affiliated Investment. See Note 4.
This Fund has holdings greater than 10% of net assets in the following countries:
United Kingdom | 24.9 | % | |||||
Netherlands | 16.5 | % |
See Notes to Financial Statements.
24
Schedule of Investments
PowerShares High Yield Equity Dividend AchieversTM Portfolio (PEY)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks—100.0% | |||||||||||
Agriculture—8.8% | |||||||||||
218,134 | Altria Group, Inc. | $ | 7,026,096 | ||||||||
120,094 | Universal Corp. | 5,503,908 | |||||||||
681,066 | Vector Group Ltd. | 11,816,495 | |||||||||
24,346,499 | |||||||||||
Banks—13.5% | |||||||||||
220,805 | Arrow Financial Corp. | 5,286,072 | |||||||||
167,341 | Community Bank System, Inc. | 4,705,629 | |||||||||
157,613 | Community Trust Bancorp, Inc. | 5,035,735 | |||||||||
70,531 | Cullen/Frost Bankers, Inc. | 4,158,508 | |||||||||
204,097 | Southside Bancshares, Inc. | 4,163,579 | |||||||||
118,740 | Tompkins Financial Corp. | 4,494,309 | |||||||||
206,429 | United Bankshares, Inc. | 5,455,918 | |||||||||
86,019 | Westamerica Bancorp | 3,945,692 | |||||||||
37,245,442 | |||||||||||
Chemicals—1.5% | |||||||||||
160,642 | RPM International, Inc. | 4,268,258 | |||||||||
Computers—1.3% | |||||||||||
94,666 | Diebold, Inc. | 3,734,574 | |||||||||
Cosmetics/Personal Care—2.2% | |||||||||||
283,130 | Avon Products, Inc. | 6,115,608 | |||||||||
Distribution/Wholesale—1.5% | |||||||||||
59,321 | Watsco, Inc. | 4,268,146 | |||||||||
Electric—16.3% | |||||||||||
173,615 | Black Hills Corp. | 5,731,031 | |||||||||
91,324 | Consolidated Edison, Inc. | 5,429,212 | |||||||||
98,765 | MGE Energy, Inc. | 4,517,511 | |||||||||
79,376 | NextEra Energy, Inc. | 5,107,846 | |||||||||
244,729 | PPL Corp. | 6,693,338 | |||||||||
123,763 | SCANA Corp. | 5,707,949 | |||||||||
124,805 | Southern Co. (The) | 5,733,542 | |||||||||
168,589 | Unisource Energy Corp. | 6,136,640 | |||||||||
45,057,069 | |||||||||||
Electrical Components & Equipment—1.5% | |||||||||||
77,852 | Emerson Electric Co. | 4,090,344 | |||||||||
Food—1.7% | |||||||||||
163,344 | Sysco Corp. | 4,720,642 | |||||||||
Gas—13.5% | |||||||||||
177,139 | Atmos Energy Corp. | 5,771,189 | |||||||||
112,516 | Northwest Natural Gas Co. | 5,141,981 | |||||||||
167,174 | Piedmont Natural Gas Co., Inc. | 5,095,463 | |||||||||
225,293 | Questar Corp. | 4,449,537 | |||||||||
182,772 | UGI Corp. | 5,333,287 | |||||||||
216,827 | Vectren Corp. | 6,385,555 | |||||||||
129,487 | WGL Holdings, Inc. | 5,193,724 | |||||||||
37,370,736 |
Number of Shares | Value | ||||||||||
Common Stocks (Continued) | |||||||||||
Household Products/Wares—3.5% | |||||||||||
65,057 | Clorox Co. (The) | $ | 4,560,496 | ||||||||
66,214 | Kimberly-Clark Corp. | 5,195,812 | |||||||||
9,756,308 | |||||||||||
Insurance—7.9% | |||||||||||
171,627 | Cincinnati Financial Corp. | 6,113,354 | |||||||||
160,977 | Mercury General Corp. | 7,274,551 | |||||||||
842,796 | Old Republic International Corp. | 8,385,820 | |||||||||
21,773,725 | |||||||||||
Iron/Steel—1.6% | |||||||||||
112,431 | Nucor Corp. | 4,408,419 | |||||||||
Media—2.2% | |||||||||||
208,673 | Meredith Corp. | 6,016,043 | |||||||||
Miscellaneous Manufacturing—2.1% | |||||||||||
268,357 | Leggett & Platt, Inc. | 5,842,132 | |||||||||
Office/Business Equipment—4.1% | |||||||||||
661,226 | Pitney Bowes, Inc. | 11,326,801 | |||||||||
Oil & Gas—1.7% | |||||||||||
63,633 | ConocoPhillips(a)(b) | 3,496,633 | |||||||||
31,816 | Phillips 66(a) | 1,083,352 | |||||||||
4,579,985 | |||||||||||
Packaging & Containers—1.7% | |||||||||||
140,430 | Sonoco Products Co. | 4,652,446 | |||||||||
Pharmaceuticals—3.2% | |||||||||||
70,314 | Abbott Laboratories | 4,363,687 | |||||||||
69,807 | Johnson & Johnson | 4,543,737 | |||||||||
8,907,424 | |||||||||||
Savings & Loans—2.3% | |||||||||||
505,177 | People's United Financial, Inc. | 6,233,884 | |||||||||
Telecommunications—2.8% | |||||||||||
231,041 | AT&T, Inc. | 7,603,559 | |||||||||
Water—5.1% | |||||||||||
250,503 | California Water Service Group | 4,536,609 | |||||||||
153,961 | Connecticut Water Service, Inc. | 4,272,418 | |||||||||
277,172 | Middlesex Water Co. | 5,144,312 | |||||||||
13,953,339 | |||||||||||
Total Common Stocks (Cost $269,014,068) | 276,271,383 |
See Notes to Financial Statements.
25
Schedule of Investments (Continued)
PowerShares High Yield Equity Dividend AchieversTM Portfolio (PEY)
April 30, 2012
Number of Shares | Value | ||||||||||
Money Market Fund—0.2% | |||||||||||
578,370 | Goldman Sachs Financial Square Prime Obligations - Institutional Share Class (Cost $578,370) | $ | 578,370 | ||||||||
Total Investments (Cost $269,592,438)—100.2% | 276,849,753 | ||||||||||
Liabilities in excess of other assets—(0.2%) | (680,434 | ) | |||||||||
Net Assets—100.0% | $ | 276,169,319 |
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) When-issued security.
See Notes to Financial Statements.
26
Schedule of Investments
PowerShares International Dividend AchieversTM Portfolio (PID)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.0% | |||||||||||
Australia—1.5% | |||||||||||
140,742 | BHP Billiton Ltd. ADR(a) | $ | 10,457,131 | ||||||||
Bahamas—3.5% | |||||||||||
580,586 | Teekay LNG Partners LP(a) | 24,059,484 | |||||||||
Belgium—1.8% | |||||||||||
251,390 | Delhaize Group SA ADR | 12,245,207 | |||||||||
Bermuda—3.4% | |||||||||||
357,883 | Alterra Capital Holdings Ltd. | 8,564,140 | |||||||||
285,616 | Axis Capital Holdings Ltd. | 9,716,656 | |||||||||
63,656 | RenaissanceRe Holdings Ltd. | 4,968,988 | |||||||||
23,249,784 | |||||||||||
Brazil—4.6% | |||||||||||
280,972 | Companhia de Bebidas das Americas ADR | 9,834,020 | |||||||||
984,084 | Vale SA ADR | 21,846,665 | |||||||||
31,680,685 | |||||||||||
Canada—19.3% | |||||||||||
290,427 | Cameco Corp.(a) | 6,418,437 | |||||||||
76,776 | Canadian National Railway Co. | 6,547,457 | |||||||||
133,480 | Canadian Natural Resources Ltd. | 4,638,430 | |||||||||
68,880 | Canadian Pacific Railway Ltd.(a) | 5,336,823 | |||||||||
245,748 | Enbridge, Inc. | 10,294,384 | |||||||||
77,745 | Imperial Oil Ltd. | 3,622,140 | |||||||||
311,970 | Ritchie Bros. Auctioneers, Inc.(a) | 6,591,926 | |||||||||
336,930 | Rogers Communications, Inc., Class B | 12,577,597 | |||||||||
770,678 | Shaw Communications, Inc., Class B(a) | 15,891,380 | |||||||||
143,109 | Suncor Energy, Inc.(a) | 4,728,321 | |||||||||
578,219 | Talisman Energy, Inc. | 7,551,540 | |||||||||
245,474 | Telus Corp.(a) | 14,411,779 | |||||||||
512,000 | Thomson Reuters Corp.(a) | 15,267,840 | |||||||||
96,328 | Tim Hortons, Inc.(a) | 5,557,162 | |||||||||
309,281 | TransCanada Corp.(a) | 13,602,178 | |||||||||
133,037,394 | |||||||||||
Chile—5.6% | |||||||||||
104,505 | Banco Santander Chile ADR(a) | 8,549,554 | |||||||||
1,013,486 | Corpbanca ADR | 20,381,204 | |||||||||
175,589 | Empresa Nacional de Electricidad SA ADR(a) | 9,590,671 | |||||||||
38,521,429 | |||||||||||
Denmark—0.6% | |||||||||||
29,709 | Novo Nordisk A/S ADR(a) | 4,367,817 | |||||||||
France—1.7% | |||||||||||
306,359 | Sanofi ADR | 11,696,787 | |||||||||
Hong Kong—3.1% | |||||||||||
204,388 | China Mobile Ltd. ADR | 11,310,832 | |||||||||
46,453 | CNOOC Ltd. ADR | 9,831,777 | |||||||||
21,142,609 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
India—3.5% | |||||||||||
192,540 | Axis Bank Ltd. GDR | $ | 4,035,638 | ||||||||
320,525 | HDFC Bank Ltd. ADR | 11,003,623 | |||||||||
90,339 | Infosys Ltd. ADR(a) | 4,277,552 | |||||||||
63,439 | State Bank of India GDR | 5,157,591 | |||||||||
24,474,404 | |||||||||||
Ireland—2.0% | |||||||||||
111,475 | Accenture PLC, Class A | 7,240,301 | |||||||||
105,283 | Cooper Industries PLC | 6,587,557 | |||||||||
13,827,858 | |||||||||||
Israel—0.8% | |||||||||||
125,298 | Teva Pharmaceutical Industries Ltd. ADR | 5,731,130 | |||||||||
Japan—3.5% | |||||||||||
227,748 | Canon, Inc. ADR | 10,330,649 | |||||||||
820,475 | NTT DoCoMo, Inc. ADR | 14,046,532 | |||||||||
24,377,181 | |||||||||||
Mexico—0.9% | |||||||||||
61,599 | Coca-Cola Femsa SAB de CV ADR | 6,526,414 | |||||||||
Netherlands—1.8% | |||||||||||
365,099 | Unilever NV | 12,541,151 | |||||||||
Norway—2.1% | |||||||||||
538,037 | Statoil ASA ADR | 14,478,576 | |||||||||
Philippines—2.9% | |||||||||||
324,972 | Philippine Long Distance Telephone Co. ADR | 19,732,300 | |||||||||
Russia—1.4% | |||||||||||
158,309 | LUKOIL OAO ADR | 9,712,257 | |||||||||
Spain—6.3% | |||||||||||
2,975,783 | Telefonica SA ADR(a) | 43,535,705 | |||||||||
Switzerland—5.2% | |||||||||||
103,274 | Allied World Assurance Co. Holdings AG | 7,431,597 | |||||||||
144,215 | Noble Corp.(b) | 5,488,823 | |||||||||
273,423 | Novartis AG ADR | 15,084,747 | |||||||||
110,949 | Syngenta AG ADR | 7,769,758 | |||||||||
35,774,925 | |||||||||||
United Kingdom—20.5% | |||||||||||
61,329 | ARM Holdings PLC ADR | 1,553,463 | |||||||||
459,512 | AstraZeneca PLC ADR(a) | 20,172,577 | |||||||||
194,911 | BHP Billiton PLC ADR | 12,544,472 | |||||||||
128,180 | British American Tobacco PLC ADR | 13,192,286 | |||||||||
90,740 | Diageo PLC ADR | 9,175,629 | |||||||||
380,549 | GlaxoSmithKline PLC ADR | 17,592,780 | |||||||||
632,381 | Pearson PLC ADR | 11,977,296 |
See Notes to Financial Statements.
27
Schedule of Investments (Continued)
PowerShares International Dividend AchieversTM Portfolio (PID)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
468,498 | Prudential PLC ADR(a) | $ | 11,482,886 | ||||||||
113,915 | Smith & Nephew PLC ADR | 5,613,731 | |||||||||
377,494 | Unilever PLC ADR | 12,955,594 | |||||||||
627,373 | Vodafone Group PLC ADR | 17,459,791 | |||||||||
111,965 | WPP PLC ADR(a) | 7,593,466 | |||||||||
141,313,971 | |||||||||||
United States—4.0% | |||||||||||
114,197 | ACE Ltd. | 8,675,546 | |||||||||
73,784 | Bunge Ltd. | 4,759,068 | |||||||||
182,211 | PartnerRe Ltd. | 12,685,530 | |||||||||
16,578 | Shire PLC ADR | 1,617,350 | |||||||||
27,737,494 | |||||||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $667,260,195)—100.0% | 690,221,693 | ||||||||||
Investments Purchased with Cash Collateral from Securities on Loan Money Market Fund—12.8% | |||||||||||
88,472,640 | Invesco Liquid Assets Portfolio - Institutional Class (Cost $88,472,640)(c)(d) | 88,472,640 | |||||||||
Total Investments (Cost $755,732,835)—112.8% | 778,694,333 | ||||||||||
Liabilities in excess of other assets—(12.8%) | (88,498,077 | ) | |||||||||
Net Assets—100.0% | $ | 690,196,256 |
Investment Abbreviations:
ADR—American Depositary Receipt
GDR—Global Depositary Receipt
Notes to Schedule of Investments:
(a) All or a portion of this security was out on loan at April 30, 2012.
(b) Non-income producing security.
(c) The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower's return of the securities loaned.
(d) The security and the Fund are advised by wholly owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.
See Notes to Financial Statements.
28
This page intentionally left blank
Statements of Assets and Liabilities
April 30, 2012
PowerShares Buyback AchieversTM Portfolio (PKW) | PowerShares Dividend AchieversTM Portfolio (PFM) | PowerShares Financial Preferred Portfolio (PGF) | PowerShares High Yield Equity Dividend AchieversTM Portfolio (PEY) | PowerShares International Dividend AchieversTM Portfolio (PID) | |||||||||||||||||||
ASSETS: | |||||||||||||||||||||||
Unaffiliated investments, at value(a) | $ | 139,772,284 | $ | 252,953,451 | $ | 1,489,303,432 | $ | 276,849,753 | $ | 690,221,693 | |||||||||||||
Affiliated investments, at value (Note 4) | — | — | 130,704,024 | — | — | ||||||||||||||||||
Investment of securities lending collateral in affiliated money market fund, at value (Note 2H) | — | — | — | — | 88,472,640 | ||||||||||||||||||
Total investments, at value | 139,772,284 | 252,953,451 | 1,620,007,456 | 276,849,753 | 778,694,333 | ||||||||||||||||||
Receivables: | |||||||||||||||||||||||
Shares sold | 8,819,457 | 5,534,104 | 1,779,038 | 9,361,672 | 23,082,675 | ||||||||||||||||||
Investments sold | 5,502,869 | 11,342,733 | 244,495 | 12,490,937 | 54,194,451 | ||||||||||||||||||
Dividends | 78,698 | 484,173 | 4,876,089 | 458,723 | 1,696,548 | ||||||||||||||||||
Foreign tax reclaims | — | — | — | — | 309,475 | ||||||||||||||||||
Affiliated securities lending dividends | — | — | — | — | 26,350 | ||||||||||||||||||
Expense waivers | — | — | — | — | 8,006 | ||||||||||||||||||
Total Assets | 154,173,308 | 270,314,461 | 1,626,907,078 | 299,161,085 | 858,011,838 | ||||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||
Due to custodian | 4,965 | 12,676 | 8,728,875 | 615,987 | 1,695,582 | ||||||||||||||||||
Payables: | |||||||||||||||||||||||
Investments purchased | 11,395,002 | 9,885,629 | 3,736,500 | 12,669,099 | 53,877,310 | ||||||||||||||||||
Shares repurchased | 2,939,819 | 7,117,880 | — | 9,361,672 | 23,082,675 | ||||||||||||||||||
Expenses recaptured | 2,334 | 3,008 | — | 9,581 | — | ||||||||||||||||||
Collateral upon return of securities loaned | — | — | — | — | 88,472,640 | ||||||||||||||||||
Accrued advisory fees | 51,729 | 85,617 | 661,424 | 92,046 | 224,620 | ||||||||||||||||||
Accrued expenses | 138,077 | 222,044 | 1,082,294 | 243,381 | 462,755 | ||||||||||||||||||
Total Liabilities | 14,531,926 | 17,326,854 | 14,209,093 | 22,991,766 | 167,815,582 | ||||||||||||||||||
NET ASSETS | $ | 139,641,382 | $ | 252,987,607 | $ | 1,612,697,985 | $ | 276,169,319 | $ | 690,196,256 | |||||||||||||
NET ASSETS CONSIST OF: | |||||||||||||||||||||||
Shares of beneficial interest | $ | 157,443,267 | $ | 242,812,046 | $ | 1,462,140,400 | $ | 412,966,216 | $ | 919,871,423 | |||||||||||||
Undistributed net investment income | 134,507 | 798,340 | 198,086 | 76,415 | 2,933,414 | ||||||||||||||||||
Undistributed net realized gain (loss) | (26,811,716 | ) | (22,240,192 | ) | (44,245,310 | ) | (144,130,627 | ) | (255,570,079 | ) | |||||||||||||
Net unrealized appreciation | 8,875,324 | 31,617,413 | 194,604,809 | 7,257,315 | 22,961,498 | ||||||||||||||||||
Net Assets | $ | 139,641,382 | $ | 252,987,607 | $ | 1,612,697,985 | $ | 276,169,319 | $ | 690,196,256 | |||||||||||||
Shares outstanding (unlimited amount authorized, $0.01 par value) | 4,750,000 | 16,000,000 | 90,650,000 | 29,500,000 | 44,950,000 | ||||||||||||||||||
Net asset value | $ | 29.40 | $ | 15.81 | $ | 17.79 | $ | 9.36 | $ | 15.35 | |||||||||||||
Share price | $ | 29.40 | $ | 15.80 | $ | 17.83 | $ | 9.36 | $ | 15.37 | |||||||||||||
Unaffiliated investments, at cost | $ | 130,896,960 | $ | 221,336,038 | $ | 1,303,049,813 | $ | 269,592,438 | $ | 667,260,195 | |||||||||||||
Affiliated investments, at cost | $ | — | $ | — | $ | 122,352,834 | $ | — | $ | — | |||||||||||||
Investments of securities lending collateral in affiliated money market fund, at cost | $ | — | $ | — | $ | — | $ | — | $ | 88,472,640 | |||||||||||||
Total investments, at cost | $ | 130,896,960 | $ | 221,336,038 | $ | 1,425,402,647 | $ | 269,592,438 | $ | 755,732,835 | |||||||||||||
(a) Includes securities on loan with an aggregate value of | $ | — | $ | — | $ | — | $ | — | $ | 85,989,135 |
See Notes to Financial Statements.
30
Statements of Operations
Year Ended April 30, 2012
PowerShares Buyback AchieversTM Portfolio (PKW) | PowerShares Dividend AchieversTM Portfolio (PFM) | PowerShares Financial Preferred Portfolio (PGF) | PowerShares High Yield Equity Dividend AchieversTM Portfolio (PEY) | PowerShares International Dividend AchieversTM Portfolio (PID) | |||||||||||||||||||
INVESTMENT INCOME: | |||||||||||||||||||||||
Unaffiliated dividend income | $ | 1,202,294 | $ | 6,941,653 | $ | 107,219,045 | $ | 11,621,268 | $ | 23,777,919 | |||||||||||||
Affiliated dividend income (Note 4) | — | — | 10,931,722 | — | 210,694 | ||||||||||||||||||
Affiliated securities lending income | — | — | — | — | 403,106 | ||||||||||||||||||
Foreign withholding tax | (16 | ) | — | — | — | (2,522,995 | ) | ||||||||||||||||
Total Income | 1,202,278 | 6,941,653 | 118,150,767 | 11,621,268 | 21,868,724 | ||||||||||||||||||
EXPENSES: | |||||||||||||||||||||||
Advisory fees | 351,005 | 963,725 | 7,959,588 | 1,038,761 | 2,332,796 | ||||||||||||||||||
Sub-licensing | 70,201 | 240,931 | 1,591,915 | 259,691 | 583,199 | ||||||||||||||||||
Accounting & administration fees | 67,460 | 67,573 | 380,619 | 71,509 | 135,367 | ||||||||||||||||||
Professional fees | 36,980 | 40,028 | 132,564 | 37,309 | 54,929 | ||||||||||||||||||
Custodian & transfer agent fees | 10,314 | 25,709 | 146,818 | 20,547 | �� | 60,901 | |||||||||||||||||
Trustees fees | 6,636 | 11,526 | 50,714 | 12,682 | 20,554 | ||||||||||||||||||
Recapture (Note 3) | 3,923 | 68,763 | 27,957 | 98,882 | 3,162 | ||||||||||||||||||
Other expenses | 10,497 | 30,471 | 196,654 | 22,060 | 47,949 | ||||||||||||||||||
Total Expenses | 557,016 | 1,448,726 | 10,486,829 | 1,561,441 | 3,238,857 | ||||||||||||||||||
Less: Waivers | (59,422 | ) | (3,138 | ) | — | (3,299 | ) | (8,006 | ) | ||||||||||||||
Net Expenses | 497,594 | 1,445,588 | 10,486,829 | 1,558,142 | 3,230,851 | ||||||||||||||||||
Net Investment Income | 704,684 | 5,496,065 | 107,663,938 | 10,063,126 | 18,637,873 | ||||||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS): | |||||||||||||||||||||||
Net realized gain (loss) from: | |||||||||||||||||||||||
Investment securities | (1,820,488 | ) | (1,688,759 | ) | (9,923,582 | ) | (926,574 | ) | (35,473,555 | ) | |||||||||||||
In-kind redemptions | 6,809,852 | 19,615,596 | 92,626,624 | 24,572,654 | 26,707,880 | ||||||||||||||||||
Foreign currencies | — | — | — | — | (676 | ) | |||||||||||||||||
Net realized gain (loss) | 4,989,364 | 17,926,837 | 82,703,042 | 23,646,080 | (8,766,351 | ) | |||||||||||||||||
Net change in unrealized appreciation (depreciation) on investment securities | 5,052,880 | (4,714,554 | ) | (139,051,457 | ) | (10,517,450 | ) | (41,600,976 | ) | ||||||||||||||
Net realized and unrealized gain (loss) | 10,042,244 | 13,212,283 | (56,348,415 | ) | 13,128,630 | (50,367,327 | ) | ||||||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | 10,746,928 | $ | 18,708,348 | $ | 51,315,523 | $ | 23,191,756 | $ | (31,729,454 | ) |
See Notes to Financial Statements.
31
Statements of Changes in Net Assets
PowerShares Buyback AchieversTM Portfolio (PKW) | PowerShares Dividend AchieversTM Portfolio (PFM) | PowerShares Financial Preferred Portfolio (PGF) | |||||||||||||||||||||||||
Year Ended April 30, 2012 | Year Ended April 30, 2011 | Year Ended April 30, 2012 | Year Ended April 30, 2011 | Year Ended April 30, 2012 | Year Ended April 30, 2011 | ||||||||||||||||||||||
OPERATIONS: | |||||||||||||||||||||||||||
Net investment income | $ | 704,684 | $ | 178,030 | $ | 5,496,065 | $ | 4,094,843 | $ | 107,663,938 | $ | 117,888,409 | |||||||||||||||
Net realized gain (loss) | 4,989,364 | 6,770,937 | 17,926,837 | 8,751,449 | 82,703,042 | 76,153,276 | |||||||||||||||||||||
Net change in unrealized appreciation (depreciation) | 5,052,880 | 448,673 | (4,714,554 | ) | 22,646,874 | (139,051,457 | ) | 55,999,303 | |||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 10,746,928 | 7,397,640 | 18,708,348 | 35,493,166 | 51,315,523 | 250,040,988 | |||||||||||||||||||||
Undistributed net investment income (loss) included in the price of units issued and redeemed | 26,276 | 4,185 | 58,969 | 435,134 | 1,345,446 | 279,389 | |||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||||||||||||
Net investment income | (632,863 | ) | (111,858 | ) | (5,330,068 | ) | (4,080,812 | ) | (107,083,605 | ) | (120,705,130 | ) | |||||||||||||||
Return of capital | — | — | — | — | (4,901,487 | ) | (4,382,771 | ) | |||||||||||||||||||
Total distributions to shareholders | (632,863 | ) | (111,858 | ) | (5,330,068 | ) | (4,080,812 | ) | (111,985,092 | ) | (125,087,901 | ) | |||||||||||||||
SHAREHOLDER TRANSACTIONS: | |||||||||||||||||||||||||||
Proceeds from shares sold | 144,656,825 | 31,415,572 | 121,445,277 | 109,729,654 | 190,750,610 | 144,693,621 | |||||||||||||||||||||
Value of shares repurchased | (58,766,144 | ) | (33,083,924 | ) | (99,695,204 | ) | (56,663,024 | ) | (349,898,568 | ) | (151,955,562 | ) | |||||||||||||||
Net income (loss) equalization | (26,276 | ) | (4,185 | ) | (58,969 | ) | (435,134 | ) | (1,345,446 | ) | (279,389 | ) | |||||||||||||||
Net increase (decrease) in net assets resulting from shares transactions | 85,864,405 | (1,672,537 | ) | 21,691,104 | 52,631,496 | (160,493,404 | ) | (7,541,330 | ) | ||||||||||||||||||
Increase (Decrease) in Net Assets | 96,004,746 | 5,617,430 | 35,128,353 | 84,478,984 | (219,817,527 | ) | 117,691,146 | ||||||||||||||||||||
NET ASSETS: | |||||||||||||||||||||||||||
Beginning of year | 43,636,636 | 38,019,206 | 217,859,254 | 133,380,270 | 1,832,515,512 | 1,714,824,366 | |||||||||||||||||||||
End of year | $ | 139,641,382 | $ | 43,636,636 | $ | 252,987,607 | $ | 217,859,254 | $ | 1,612,697,985 | $ | 1,832,515,512 | |||||||||||||||
Undistributed net investment income (loss) at end of year | $ | 134,507 | $ | 62,686 | $ | 798,340 | $ | 606,451 | $ | 198,086 | $ | (289,320 | ) | ||||||||||||||
CHANGES IN SHARES OUTSTANDING: | |||||||||||||||||||||||||||
Shares sold | 5,300,000 | 1,250,000 | 8,250,000 | 8,500,000 | 10,950,000 | 8,300,000 | |||||||||||||||||||||
Shares repurchased | (2,150,000 | ) | (1,350,000 | ) | (6,500,000 | ) | (4,350,000 | ) | (20,650,000 | ) | (9,000,000 | ) | |||||||||||||||
Shares outstanding, beginning of year | 1,600,000 | 1,700,000 | 14,250,000 | 10,100,000 | 100,350,000 | 101,050,000 | |||||||||||||||||||||
Shares outstanding, end of year | 4,750,000 | 1,600,000 | 16,000,000 | 14,250,000 | 90,650,000 | 100,350,000 |
See Notes to Financial Statements.
32
PowerShares High Yield Equity Dividend AchieversTM Portfolio (PEY) | PowerShares International Dividend AchieversTM Portfolio (PID) | ||||||||||||||||||
Year Ended April 30, 2012 | Year Ended April 30, 2011 | Year Ended April 30, 2012 | Year Ended April 30, 2011 | ||||||||||||||||
OPERATIONS: | |||||||||||||||||||
Net investment income | $ | 10,063,126 | $ | 6,550,194 | $ | 18,637,873 | $ | 14,222,504 | |||||||||||
Net realized gain (loss) | 23,646,080 | 12,070,519 | (8,766,351 | ) | 43,671,147 | ||||||||||||||
Net change in unrealized appreciation (depreciation) | (10,517,450 | ) | 3,341,741 | (41,600,976 | ) | 31,849,135 | |||||||||||||
Net increase (decrease) in net assets resulting from operations | 23,191,756 | 21,962,454 | (31,729,454 | ) | 89,742,786 | ||||||||||||||
Undistributed net investment income (loss) included in the price of units issued and redeemed | (78,789 | ) | 65,191 | 692,028 | 256,262 | ||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||||
Net investment income | (9,978,411 | ) | (6,552,543 | ) | (17,956,612 | ) | (13,859,836 | ) | |||||||||||
Return of capital | — | (277,932 | ) | — | — | ||||||||||||||
Total distributions to shareholders | (9,978,411 | ) | (6,830,475 | ) | (17,956,612 | ) | (13,859,836 | ) | |||||||||||
SHAREHOLDER TRANSACTIONS: | |||||||||||||||||||
Proceeds from shares sold | 242,546,677 | 148,651,386 | 417,763,549 | 193,763,089 | |||||||||||||||
Value of shares repurchased | (188,061,234 | ) | (82,736,906 | ) | (228,163,544 | ) | (147,146,410 | ) | |||||||||||
Net income (loss) equalization | 78,789 | (65,191 | ) | (692,028 | ) | (256,262 | ) | ||||||||||||
Net increase (decrease) in net assets resulting from shares transactions | 54,564,232 | 65,849,289 | 188,907,977 | 46,360,417 | |||||||||||||||
Increase (Decrease) in Net Assets | 67,698,788 | 81,046,459 | 139,913,939 | 122,499,629 | |||||||||||||||
NET ASSETS: | |||||||||||||||||||
Beginning of year | 208,470,531 | 127,424,072 | 550,282,317 | 427,782,688 | |||||||||||||||
End of year | $ | 276,169,319 | $ | 208,470,531 | $ | 690,196,256 | $ | 550,282,317 | |||||||||||
Undistributed net investment income (loss) at end of year | $ | 76,415 | $ | (8,300 | ) | $ | 2,933,414 | $ | 2,252,829 | ||||||||||
CHANGES IN SHARES OUTSTANDING: | |||||||||||||||||||
Shares sold | 26,900,000 | 17,700,000 | 27,800,000 | 12,650,000 | |||||||||||||||
Shares repurchased | (20,400,000 | ) | (9,800,000 | ) | (15,500,000 | ) | (10,000,000 | ) | |||||||||||
Shares outstanding, beginning of year | 23,000,000 | 15,100,000 | 32,650,000 | 30,000,000 | |||||||||||||||
Shares outstanding, end of year | 29,500,000 | 23,000,000 | 44,950,000 | 32,650,000 |
33
Financial Highlights
PowerShares Buyback AchieversTM Portfolio (PKW)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of year | $ | 27.27 | $ | 22.36 | $ | 16.15 | $ | 22.64 | $ | 25.99 | |||||||||||||
Net investment income(a) | 0.27 | 0.11 | 0.19 | 0.26 | 0.10 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 2.12 | 4.87 | 6.29 | (6.55 | ) | (3.35 | ) | ||||||||||||||||
Total from investment operations | 2.39 | 4.98 | 6.48 | (6.29 | ) | (3.25 | ) | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.26 | ) | (0.07 | ) | (0.27 | ) | (0.20 | ) | (0.10 | ) | |||||||||||||
Net asset value at end of year | $ | 29.40 | $ | 27.27 | $ | 22.36 | $ | 16.15 | $ | 22.64 | |||||||||||||
Share price at end of year(b) | $ | 29.40 | $ | 27.27 | $ | 22.37 | $ | 16.16 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN(c) | 8.91 | % | 22.34 | % | 40.46 | % | (27.87 | )% | (12.53 | )% | |||||||||||||
SHARE PRICE TOTAL RETURN(c) | 8.91 | % | 22.29 | % | 40.43 | % | (27.80 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 139,641 | $ | 43,637 | $ | 38,019 | $ | 27,456 | $ | 61,132 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.71 | % | 0.70 | % | 0.70 | % | 0.70 | % | 0.73 | % | |||||||||||||
Expenses, prior to Waivers | 0.79 | % | 1.00 | % | 0.97 | % | 0.92 | % | 0.79 | % | |||||||||||||
Net investment income, after Waivers | 1.00 | % | 0.49 | % | 0.98 | % | 1.39 | % | 0.41 | % | |||||||||||||
Portfolio turnover rate(d) | 32 | % | 26 | % | 23 | % | 56 | % | 46 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(e) | $ | 0.01 | $ | 0.00 | (f) | $ | 0.00 | (f) | $ | (0.02 | ) | $ | (0.01 | ) |
PowerShares Dividend AchieversTM Portfolio (PFM)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of year | $ | 15.29 | $ | 13.21 | $ | 10.30 | $ | 16.15 | $ | 17.52 | |||||||||||||
Net investment income(a) | 0.34 | 0.31 | 0.27 | 0.36 | 0.37 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.51 | 2.08 | 2.96 | (5.92 | ) | (1.41 | ) | ||||||||||||||||
Total from investment operations | 0.85 | 2.39 | 3.23 | (5.56 | ) | (1.04 | ) | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.33 | ) | (0.31 | ) | (0.32 | ) | (0.29 | ) | (0.33 | ) | |||||||||||||
Net asset value at end of year | $ | 15.81 | $ | 15.29 | $ | 13.21 | $ | 10.30 | $ | 16.15 | |||||||||||||
Share price at end of year(b) | $ | 15.80 | $ | 15.29 | $ | 13.21 | $ | 10.30 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN(c) | 5.78 | % | 18.39 | % | 31.76 | % | (34.84 | )% | (6.00 | )% | |||||||||||||
SHARE PRICE TOTAL RETURN(c) | 5.71 | % | 18.39 | % | 31.76 | % | (34.84 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 252,988 | $ | 217,859 | $ | 133,380 | $ | 85,451 | $ | 59,751 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.60 | % | 0.60 | % | 0.60 | % | 0.60 | % | 0.60 | % | |||||||||||||
Expenses, prior to Waivers | 0.60 | % | 0.61 | % | 0.64 | % | 0.74 | % | 0.72 | % | |||||||||||||
Net investment income, after Waivers | 2.28 | % | 2.30 | % | 2.28 | % | 3.11 | % | 2.15 | % | |||||||||||||
Portfolio turnover rate(d) | 20 | % | 11 | % | 18 | % | 31 | % | 8 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(e) | $ | 0.00 | (f) | $ | 0.03 | $ | 0.01 | $ | 0.03 | $ | (0.01 | ) |
(a) Based on average shares outstanding.
(b) The mean between the last bid and ask prices.
(c) 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.
(d) Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
(e) The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(f) Amount represents less than $0.005.
See Notes to Financial Statements.
34
Financial Highlights (Continued)
PowerShares Financial Preferred Portfolio (PGF)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of year | $ | 18.26 | $ | 16.97 | $ | 11.41 | $ | 21.17 | $ | 24.78 | |||||||||||||
Net investment income(a) | 1.17 | 1.18 | 1.31 | 1.35 | 1.35 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.42 | ) | 1.36 | 5.61 | (9.63 | ) | (3.50 | ) | |||||||||||||||
Total from investment operations | 0.75 | 2.54 | 6.92 | (8.28 | ) | (2.15 | ) | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (1.17 | ) | (1.21 | ) | (1.30 | ) | (1.46 | ) | (1.46 | ) | |||||||||||||
Return of capital | (0.05 | ) | (0.04 | ) | (0.06 | ) | (0.02 | ) | — | ||||||||||||||
Total distributions | (1.22 | ) | (1.25 | ) | (1.36 | ) | (1.48 | ) | (1.46 | ) | |||||||||||||
Net asset value at end of year | $ | 17.79 | $ | 18.26 | $ | 16.97 | $ | 11.41 | $ | 21.17 | |||||||||||||
Share price at end of year(b) | $ | 17.83 | $ | 18.28 | $ | 16.93 | $ | 11.41 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN(c) | 4.56 | % | 15.57 | % | 62.16 | % | (39.56 | )% | (8.77 | )% | |||||||||||||
SHARE PRICE TOTAL RETURN(c) | 4.68 | % | 15.97 | % | 61.76 | % | (39.82 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 1,612,698 | $ | 1,832,516 | $ | 1,714,824 | $ | 773,644 | $ | 237,126 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.66 | % | 0.66 | % | 0.65 | % | 0.69 | % | 0.72 | % | |||||||||||||
Expenses, prior to Waivers | 0.66 | % | 0.66 | % | 0.65 | % | 0.68 | % | 0.74 | % | |||||||||||||
Net investment income, after Waivers | 6.76 | % | 6.75 | % | 8.30 | % | 11.49 | % | 6.20 | % | |||||||||||||
Portfolio turnover rate(d) | 6 | % | 26 | % | 23 | % | 45 | % | 80 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(e) | $ | 0.01 | $ | 0.00 | (f) | $ | (0.02 | ) | $ | 0.02 | $ | 0.03 |
PowerShares High Yield Equity Dividend AchieversTM Portfolio (PEY)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of year | $ | 9.06 | $ | 8.44 | $ | 6.12 | $ | 11.36 | $ | 15.82 | |||||||||||||
Net investment income(a) | 0.35 | 0.34 | 0.32 | 0.43 | 0.62 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.29 | 0.63 | 2.35 | (5.21 | ) | (4.42 | ) | ||||||||||||||||
Total from investment operations | 0.64 | 0.97 | 2.67 | (4.78 | ) | (3.80 | ) | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.34 | ) | (0.34 | ) | (0.33 | ) | (0.43 | ) | (0.63 | ) | |||||||||||||
Return of capital | — | (0.01 | ) | (0.02 | ) | (0.03 | ) | (0.03 | ) | ||||||||||||||
Total distributions | (0.34 | ) | (0.35 | ) | (0.35 | ) | (0.46 | ) | (0.66 | ) | |||||||||||||
Net asset value at end of year | $ | 9.36 | $ | 9.06 | $ | 8.44 | $ | 6.12 | $ | 11.36 | |||||||||||||
Share price at end of year(b) | $ | 9.36 | $ | 9.06 | $ | 8.44 | $ | 6.12 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN(c) | 7.37 | % | 11.91 | % | 44.59 | % | (42.88 | )% | (24.67 | )% | |||||||||||||
SHARE PRICE TOTAL RETURN(c) | 7.37 | % | 11.91 | % | 44.58 | % | (42.88 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 276,169 | $ | 208,471 | $ | 127,424 | $ | 86,846 | $ | 184,077 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.60 | % | 0.60 | % | 0.60 | % | 0.60 | % | 0.60 | % | |||||||||||||
Expenses, prior to Waivers | 0.60 | % | 0.62 | % | 0.65 | % | 0.62 | % | 0.56 | % | |||||||||||||
Net investment income, after Waivers | 3.88 | % | 4.02 | % | 4.42 | % | 5.24 | % | 4.35 | % | |||||||||||||
Portfolio turnover rate(d) | 35 | % | 44 | % | 57 | % | 77 | % | 42 | % | |||||||||||||
Undistributed net investment income included in price of units issued and redeemed(a)(e) | $ | (0.00 | )(f) | $ | 0.00 | (f) | $ | 0.00 | (f) | $ | 0.00 | (f) | $ | 0.02 |
(a) Based on average shares outstanding.
(b) The mean between the last bid and ask prices.
(c) 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.
(d) Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
(e) The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(f) Amount represents less than $0.005.
See Notes to Financial Statements.
35
Financial Highlights (Continued)
PowerShares International Dividend AchieversTM Portfolio (PID)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of year | $ | 16.85 | $ | 14.26 | $ | 10.14 | $ | 19.63 | $ | 20.12 | |||||||||||||
Net investment income(a) | 0.48 | 0.47 | 0.35 | 0.52 | 0.68 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (1.49 | ) | 2.59 | 4.24 | (9.46 | ) | (0.61 | ) | |||||||||||||||
Total from investment operations | (1.01 | ) | 3.06 | 4.59 | (8.94 | ) | 0.07 | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.49 | ) | (0.47 | ) | (0.47 | ) | (0.55 | ) | (0.56 | ) | |||||||||||||
Net asset value at end of year | $ | 15.35 | $ | 16.85 | $ | 14.26 | $ | 10.14 | $ | 19.63 | |||||||||||||
Share price at end of year(b) | $ | 15.37 | $ | 16.89 | $ | 14.26 | $ | 10.15 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN(c) | (5.87 | )% | 21.95 | % | 45.77 | % | (46.44 | )% | 0.34 | % | |||||||||||||
SHARE PRICE TOTAL RETURN(c) | (5.97 | )% | 22.23 | % | 45.62 | % | (46.30 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 690,196 | $ | 550,282 | $ | 427,783 | $ | 256,584 | $ | 551,630 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.55 | % | 0.58 | % | 0.57 | % | 0.57 | % | 0.58 | % | |||||||||||||
Expenses, prior to Waivers | 0.56 | % | 0.58 | % | 0.57 | % | 0.57 | % | 0.56 | % | |||||||||||||
Net investment income, after Waivers | 3.20 | % | 3.20 | % | 2.65 | % | 3.87 | % | 3.28 | % | |||||||||||||
Portfolio turnover rate(d) | 33 | % | 42 | % | 63 | % | 50 | % | 43 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(e) | $ | 0.02 | $ | 0.01 | $ | 0.02 | $ | (0.01 | ) | $ | (0.02 | ) |
(a) Based on average shares outstanding.
(b) The mean between the last bid and ask prices.
(c) 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.
(d) Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
(e) The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
See Notes to Financial Statements.
36
Notes to Financial Statements
PowerShares Exchange-Traded Fund Trust
April 30, 2012
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, 2012, the Trust offered fifty-eight portfolios. This report includes the following portfolios:
Full Name | Short Name | ||||||
PowerShares Buyback AchieversTM Portfolio (PKW) | "Buyback AchieversTM Portfolio" | ||||||
PowerShares Dividend AchieversTM Portfolio (PFM) | "Dividend AchieversTM Portfolio" | ||||||
PowerShares Financial Preferred Portfolio (PGF) | "Financial Preferred Portfolio" | ||||||
PowerShares High Yield Equity Dividend AchieversTM Portfolio (PEY) | "High Yield Equity Dividend AchieversTM Portfolio" | ||||||
PowerShares International Dividend AchieversTM Portfolio (PID) | "International Dividend AchieversTM Portfolio" | ||||||
Each portfolio (each, a "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 market prices of each Fund's Shares may differ to some degree from the Fund's net asset value ("NAV"). 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 by Authorized Participants, the Shares are not individually redeemable securities of the Funds.
The investment objective of each Fund is to seek investment results that generally correspond (before fees and expenses) to the price and yield of its respective index listed below (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 Securities 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 accounting principles generally accepted in the United States of America ("GAAP") 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.
37
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
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. 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 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 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.
38
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
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
Index Risk. Unlike many investment companies, the Funds do not utilize an investing strategy that seeks returns in excess of each Fund's respective Underlying Index. Therefore, a Fund would not necessarily buy or sell a security unless that security is added or removed, respectively, from its respective Underlying Index, even if that security generally is underperforming.
Non-Diversified Fund Risk. Buyback AchieversTM Portfolio and Financial Preferred Portfolio are non-diversified and can invest a greater portion of assets in securities of individual issuers than can 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. This may increase the Fund's volatility and cause the performance of a relatively small number of issuers to have a greater impact on the Fund's performance.
Equity Risk. Equity risk is the risk that the value of the securities the Fund holds will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities the Fund holds participate or factors relating to specific companies in which the Fund invests. For example, an adverse event, such as an unfavorable earnings report, may depress the value of equity securities the Fund holds; the price of common stock may be particularly sensitive to general movements in the stock market; or a drop in the stock market may depress the price of most or all of the common stocks and other equity securities the Fund holds. In addition, common stock in the Fund's portfolio may decline in price if the issuer fails to make anticipated dividend payments because, among other reasons, the issuer of the security experiences a decline in its financial condition. Common stock is subordinated to preferred stocks, bonds and other debt instruments in a company's capital structure, in terms of priority to corporate income, and therefore will be subject to greater dividend risk than preferred stocks or debt instruments of such issuers.
Concentration Risk. A significant percentage of a Fund's Underlying Index may be composed of issuers in a single industry or sector of the economy. If a Fund is focused in an industry or sector, it may present more risks than if it were diversified broadly over numerous industries and sectors of the economy. At times, such industry or group of industries may be out of favor and underperform other industries or the market as a whole.
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
39
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
portfolio and its Underlying Index resulting from legal restrictions, cost or liquidity constraints. For Financial Preferred Portfolio, because the Fund's Underlying Index does not meet the diversification requirements set forth in the Internal Revenue Code, the Fund may not be able to invest in all of the stocks comprising its Underlying Index in proportion to their weightings in the Underlying Index at all times.
Foreign and Emerging Market Securities Risk. With respect to Financial Preferred and International Dividend AchieversTM 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 certain Funds will invest in securities denominated in foreign currencies, changes in currency exchange rates may negatively impact the Fund's returns.
Small and Medium Capitalization Company Risk. Investing in securities of small and medium capitalization companies involves greater risk than customarily is associated with investing in larger, more established companies. These companies' securities may be more volatile and less liquid than those of more established companies. These securities may have returns that vary, sometimes significantly, from the overall securities market. Often small and medium capitalization companies and the industries in which they focus are still evolving and, as a result, they may be more sensitive to changing market conditions.
Preferred Securities Risk. There are special risks associated with the Financial Preferred Portfolio's investments in preferred securities. Preferred securities may include provisions that permit the issuer, in its discretion, to defer or omit distributions for a certain period of time. If the Fund owns a security that is deferring or omitting its distributions, the Fund may be required to report the distribution on its tax returns, even though it may not have received this income. Further, preferred securities may lose substantial value due to the omission or deferment of dividend payments. Preferred securities may be less liquid than many other securities, such as common stocks, and generally offer no voting rights with respect to the issuer. Preferred securities may also be subordinated to bonds or other debt instruments in an issuer's capital structure, subjecting them to a greater risk of non-payment than more senior securities. In addition, in certain circumstances, an issuer of preferred securities may redeem the securities prior to a specified date, and this may negatively impact the return of the security. Certain of the companies that comprise the Fund's Underlying Index, while traded on U.S. exchanges, may be issued by foreign financial institutions and, therefore, subject the Fund to the risks of investing in securities issued by foreign companies.
High Yield Securities Risk. With respect to Financial Preferred Portfolio and High Yield Equity Dividend AchieversTM Portfolio, investments in high yield securities typically involve greater risk and are less liquid than higher grade issues. Changes in general economic conditions, changes in the financial condition of the issuers and changes in interest rates may adversely impact the ability of issuers of high yield securities to make timely payments of interest and principal.
C. Federal Income Taxes
Each Fund intends to comply with the provisions of the Internal Revenue Code of 1986, as amended (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.
40
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
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 U.S. federal tax returns and tax returns in 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 that are directly identifiable to a specific Fund are applied to that Fund. Expenses of the Trust that 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 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, sub-licensing fees related to its respective Underlying Index, any distribution fees or expenses, litigation expenses, fees payable to the Trust's Board members who are not "interested persons" (as defined in the 1940 Act) of the Trust or Invesco PowerShares Capital Management LLC (the "Adviser") (the "Independent Trustees"), expenses incurred in connection with the Board members' services, including travel expenses and legal fees of counsel for the Independent Trustees, and extraordinary expenses.
To the extent a Fund invests in other investment companies, the expenses shown in the accompanying financial statements reflect the expenses of the Fund and do not include any expenses of the investment companies in which it invests. The effects of the investment companies expenses are included in the realized and unrealized gain/loss on the investments in the investment companies.
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 such dividends on ex-dividend date. Each Fund distributes net realized taxable capital gains, if any, generally annually in cash and records them 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.
41
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
G. Equalization
All of the 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.
H. Securities Lending
The International Dividend AchieversTM Portfolio may lend portfolio securities having a market value up to one-third of the Fund's total assets. Such loans are secured by cash collateral equal to no less than 102% of the market value of the loaned securities determined daily by the securities lending provider. Cash collateral received in connection with these loans is invested in an affiliated money market fund and is shown as such on the Schedule of Investments. It is the Fund's policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to a Fund if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. A Fund could experience delays and costs in gaining access to the collateral. A Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, is included in Affiliated securities lending income on the Statements of Operations. The aggregate value of securities out on loan is shown on the Statements of Assets and Liabilities, if any.
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 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 each 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 ("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 (excluding interest expenses, brokerage commissions and other trading expenses, sub-licensing fees, offering costs, taxes and extraordinary expenses) of each Fund 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, 2013. 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.
42
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
The Expense Agreement provides that the fees waived or expenses borne by the Adviser are subject to recapture by the Adviser for up to three years from the date the fee was waived 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 amounts available for potential future recapture by the Adviser under the Excess Expense Agreement and the expiration schedule at April 30, 2012 are as follows:
Total Potential | Potential Recapture Amounts Expiring | ||||||||||||||||||
Recapture Amounts | 04/30/13 | 04/30/14 | 04/30/15 | ||||||||||||||||
Buyback AchieversTM Portfolio | $ | 258,926 | $ | 89,101 | $ | 110,403 | $ | 59,422 | |||||||||||
Dividend AchieversTM Portfolio | 74,532 | 49,479 | 21,915 | 3,138 | |||||||||||||||
High Yield Equity Dividend AchieversTM Portfolio | 38,992 | — | 35,693 | 3,299 | |||||||||||||||
International Dividend AchieversTM Portfolio | 8,006 | — | — | 8,006 |
The Trust has entered into a Distribution Agreement with Invesco 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 Distributor is an affiliate of the Adviser.
The Adviser has entered into a licensing agreement for each Fund with the following entities (each, a "Licensor"):
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 its respective Licensor. These trademarks have been licensed to the Adviser for use with the Funds. Each Fund is entitled to use its Underlying Index pursuant to the Trust's sub-licensing agreement with the Adviser. The Funds are required to pay the sub-licensing fees that are shown on the Statements of Operations. 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 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, 2012.
43
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
Financial Preferred Portfolio
Value April 30, 2011 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain | Value April 30, 2012 | Dividend Income | |||||||||||||||||||||||||
HSBC Finance Corp., 6.36%, Series B | $ | 36,200,466 | $ | 2,026,576 | $ | (10,239,892 | ) | $ | (1,526,143 | ) | $ | 2,241,289 | $ | 28,702,296 | $ | 2,239,848 | |||||||||||||||
HSBC USA, Inc., 6.50%, Series H | 30,954,400 | 1,199,562 | (8,459,001 | ) | (1,481,368 | ) | 1,250,839 | 23,464,432 | 1,817,000 | ||||||||||||||||||||||
PartnerRe Ltd., 7.25%, Series E | — | 23,115,646 | (4,278,364 | ) | 1,080,110 | 79,914 | 19,997,306 | 966,341 | |||||||||||||||||||||||
Prudential PLC, 6.75% (United Kingdom) | 15,384,116 | 621,715 | (3,072,051 | ) | (1,270,268 | ) | 1,399,908 | 13,063,420 | 943,034 | ||||||||||||||||||||||
Santander Finance Preferred SA Unipersonal, 10.50%, Series 10 (Spain) | 58,084,055 | 4,583,735 | (11,831,153 | ) | (7,383,494 | ) | 2,023,427 | 45,476,570 | 4,965,499 | ||||||||||||||||||||||
Total Investments in Affiliates | $ | 140,623,037 | $ | 31,547,234 | $ | (37,880,461 | ) | $ | (10,581,163 | ) | $ | 6,995,377 | $ | 130,704,024 | $ | 10,931,722 |
International Dividend AchieversTM Portfolio
Value April 30, 2011 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation | Realized Gain (Loss) | Value April 30, 2012 | Dividend Income | |||||||||||||||||||||||||
Consolidated Water Co. Ltd. | $ | 8,168,758 | $ | 4,140,492 | $ | (9,798,680 | ) | $ | 1,164,723 | $ | (3,675,293 | ) | $ | — | $ | 210,694 |
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, yield curves, loss severities, default rates, discount rates, volatilities 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.
44
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
As of April 30, 2012, the securities in each Fund were valued based on Level 1 inputs (see Schedule of Investments for security categories). 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.
With respect to each Fund, during the fiscal year ended April 30, 2012, there were no significant transfers between investment levels.
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, 2012 and 2011:
2012 | 2011 | ||||||||||||||||||
Ordinary Income | Return of Capital | Ordinary Income | Return of Capital | ||||||||||||||||
Buyback AchieversTM Portfolio | $ | 632,863 | $ | — | $ | 111,858 | $ | — | |||||||||||
Dividend AchieversTM Portfolio | 5,330,068 | — | 4,080,812 | — | |||||||||||||||
Financial Preferred Portfolio(1) | 115,157,421 | 4,901,487 | 117,851,509 | 4,382,771 | |||||||||||||||
High Yield Equity Dividend AchieversTM Portfolio | 9,978,411 | — | 6,552,543 | 277,932 | |||||||||||||||
International Dividend AchieversTM Portfolio | 17,956,612 | — | 13,859,836 |
(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 Capital Deferrals* | Shares of Beneficial Interest | Total Net Assets | |||||||||||||||||||||||||
Buyback AchieversTM Portfolio | $ | 140,882 | $ | (6,375 | ) | $ | 7,425,516 | $ | (24,934,405 | ) | $ | (427,503 | ) | $ | 157,443,267 | $ | 139,641,382 | ||||||||||||||
Dividend AchieversTM Portfolio | 807,314 | (8,974 | ) | 29,162,936 | (18,981,637 | ) | (804,078 | ) | 242,812,046 | 252,987,607 | |||||||||||||||||||||
Financial Preferred Portfolio(1) | — | (34,003 | ) | 123,182,115 | (48,408,318 | ) | — | 1,433,107,697 | 1,507,847,491 | ||||||||||||||||||||||
High Yield Equity Dividend AchieversTM Portfolio | 87,218 | (10,803 | ) | 6,321,084 | (142,980,887 | ) | (213,509 | ) | 412,966,216 | 276,169,319 | |||||||||||||||||||||
International Dividend AchieversTM Portfolio | 2,954,064 | (20,650 | ) | 18,315,992 | (218,699,041 | ) | (32,225,532 | ) | 919,871,423 | 690,196,256 |
* The Funds elected to defer capital losses incurred after October 31 ("Post-October Capital Losses"). Post-October Capital 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 Regulated Investment Company Modernization Act of 2010 (the "Act") eliminated the eight-year carryover period for capital losses that arise in taxable years beginning after its enactment date of December 22, 2010. Consequently, these capital losses can be carried forward for an unlimited period. However, capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Additionally, post-enactment capital loss carryforwards will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. 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.
45
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
The following Funds had capital loss carryforward amounts as of April 30, 2012, which expire on April 30 of each year listed below:
Post-effective no expiration | |||||||||||||||||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | 2019 | Short-term | Long-term | Total** | |||||||||||||||||||||||||||||||
Buyback AchieversTM Portfolio | $ | — | $ | 178,870 | $ | 9,098,882 | $ | 800,254 | $ | 12,142,749 | $ | 2,107,645 | $ | — | $ | 606,005 | $ | 24,934,405 | |||||||||||||||||||||
Dividend AchieversTM Portfolio | 7,896 | — | 50,943 | 1,716,151 | 14,632,363 | 2,339,194 | — | 235,090 | 18,981,637 | ||||||||||||||||||||||||||||||
Financial Preferred Portfolio(1) | — | 2,123,151 | 29,895,674 | 9,034,558 | 7,354,935 | — | — | — | 48,408,318 | ||||||||||||||||||||||||||||||
High Yield Equity Dividend AchieversTM Portfolio | 2,318,867 | 7,009,598 | 5,162,362 | 81,487,358 | 44,815,128 | 2,187,574 | — | — | 142,980,887 | ||||||||||||||||||||||||||||||
International Dividend AchieversTM Portfolio | — | — | 1,965,954 | 59,472,841 | 145,514,837 | 11,745,409 | — | — | 218,699,041 |
** 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 and carryforward expiration is October 31
The Funds utilized noted amounts of capital loss carryforward during fiscal year ended April 30, 2012 as follows:
Utilized Amount | |||||||
Financial Preferred Portfolio(1) | $ | 322,294 | |||||
High Yield Equity Dividend AchieversTM Portfolio | 294,166 | ||||||
International Dividend AchieversTM Portfolio | 414,324 |
Note 7. Investment Transactions
For the fiscal year ended April 30, 2012, 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 | $ | 24,154,795 | $ | 23,475,761 | |||||||
Dividend AchieversTM Portfolio | 50,128,452 | 47,511,552 | |||||||||
Financial Preferred Portfolio | 210,951,930 | 97,492,485 | |||||||||
High Yield Equity Dividend AchieversTM Portfolio | 91,824,258 | 92,220,038 | |||||||||
International Dividend AchieversTM Portfolio | 192,436,056 | 192,182,365 |
46
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
For the fiscal year ended April 30, 2012, in-kind transactions associated with creations and redemptions were as follows:
Securities Received | Securities Delivered | ||||||||||
Buyback AchieversTM Portfolio | $ | 144,847,528 | $ | 59,548,056 | |||||||
Dividend AchieversTM Portfolio | 102,651,346 | 83,393,306 | |||||||||
Financial Preferred Portfolio | 70,853,639 | 348,905,826 | |||||||||
High Yield Equity Dividend AchieversTM Portfolio | 244,253,470 | 189,076,265 | |||||||||
International Dividend AchieversTM Portfolio | 415,005,590 | 225,795,694 |
Gains and losses on in-kind transactions are generally not considered taxable gains and losses for Federal income tax purposes.
At April 30, 2012, the aggregate cost and the net unrealized appreciation for tax purposes were as follows:
Cost | Net Unrealized Appreciation | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | ||||||||||||||||
Buyback AchieversTM Portfolio | $ | 132,346,768 | $ | 7,425,516 | $ | 9,827,332 | $ | (2,401,816 | ) | ||||||||||
Dividend AchieversTM Portfolio | 223,790,515 | 29,162,936 | 30,788,259 | (1,625,323 | ) | ||||||||||||||
Financial Preferred Portfolio(1) | 1,388,243,402 | 123,182,115 | 129,006,425 | (5,824,310 | ) | ||||||||||||||
High Yield Equity Dividend AchieversTM Portfolio | 270,528,669 | 6,321,084 | 12,539,161 | (6,218,077 | ) | ||||||||||||||
International Dividend AchieversTM Portfolio | 760,378,341 | 18,315,992 | 49,104,200 | (30,788,208 | ) |
(1) Tax year-end is October 31.
Note 8. Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of in-kind transactions and utilization of book equalization, on April 30, 2012, amounts were reclassified between undistributed net investment income (loss), undistributed net realized gain (loss) and Share of beneficial interest. These reclassifications had no effect on the net assets of each Fund. For the fiscal year ended April 30, 2012, the reclassifications were as follows:
Undistributed Net Investment Income (Loss) | Undistributed Net Realized Gain (Loss) | Shares of Beneficial Interest | |||||||||||||
Buyback AchieversTM Portfolio | $ | (26,276 | ) | $ | (6,695,341 | ) | $ | 6,721,617 | |||||||
Dividend AchieversTM Portfolio | (33,077 | ) | (18,826,491 | ) | 18,859,568 | ||||||||||
Financial Preferred Portfolio(1) | (1,438,373 | ) | (84,430,365 | ) | 85,868,738 | ||||||||||
High Yield Equity Dividend AchieversTM Portfolio | 78,789 | (23,798,596 | ) | 23,719,807 | |||||||||||
International Dividend AchieversTM Portfolio | (692,704 | ) | (24,888,391 | ) | 25,581,095 |
(1) Tax year-end is October 31
47
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
Note 9. Trustees' Fees
The Funds compensate each Independent Trustee. The Trustees who are affiliated with the Adviser (the "Non-Independent 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 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 select PowerShares Funds. The Deferral Fees payable to the Participating Trustee are valued as of the date such 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. Transactions in capital shares for each Fund are disclosed in detail on the Statements of Changes in Net Assets.
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.
48
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 PowerShares Buyback AchieversTM Portfolio, PowerShares Dividend AchieversTM Portfolio, PowerShares Financial Preferred Portfolio, PowerShares High Yield Equity Dividend AchieversTM Portfolio and PowerShares International Dividend AchieversTM Portfolio (each an individual portfolio of PowerShares Exchange-Traded Fund Trust, hereafter referred to as the "Funds") at April 30, 2012, the results of each of their operations for the year then ended, the change in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, 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 Funds' 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, 2012 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Chicago, IL
June 25, 2012
49
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, 2012:
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 | % | 43 | % | |||||||
High Yield Equity Dividend AchieversTM Portfolio | 100 | % | 100 | % | |||||||
International Dividend AchieversTM Portfolio | 82 | % | 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 | $ | 17,640,096 | $ | 2,042,959 |
* 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.
50
Supplemental Information
Trustees and Officers
The Independent Trustees, the Non-Independent 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, 2012.
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 During the Past 5 Years | ||||||||||||||||||
Ronn R. Bagge (54) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road 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) | 120 | None | ||||||||||||||||||
Todd J. Barre (54) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Trustee | Since 2010 | Assistant Professor of Business, Trinity Christian College (2010-Present); formerly 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 | 120 | None | ||||||||||||||||||
* This is the date the Independent 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, 2012, the Fund Complex consisted of the Trust's 58 portfolios and three other exchange-traded fund trusts with 62 portfolios advised by the Adviser.
51
Supplemental Information (Continued)
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 During the Past 5 Years | ||||||||||||||||||
Marc M. Kole (51) 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) | 120 | None | ||||||||||||||||||
Philip M. Nussbaum (50) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Trustee | Since 2003 | Chairman, Performance Trust Capital Partners (2004-Present) | 120 | None | ||||||||||||||||||
* This is the date the Independent 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, 2012, the Fund Complex consisted of the Trust's 58 portfolios and three other exchange-traded fund trusts with 62 portfolios advised by the Adviser.
52
Supplemental Information (Continued)
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 During the Past 5 Years | ||||||||||||||||||
Donald H. Wilson (52) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Chairman of the Board and Trustee | Trustee since 2006; Chair since 2012 | 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) | 120 | None | ||||||||||||||||||
* This is the date the Independent 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, 2012, the Fund Complex consisted of the Trust's 58 portfolios and three other exchange-traded fund trusts with 62 portfolios advised by the Adviser.
53
Supplemental Information (Continued)
Trustees and Officers (Continued)
The Non-Independent Trustees and the executive officers of the Trust, their term of office and length of time served, their principal business occupations during the past five years, the number of portfolios in the Fund Complex overseen by the Non-Independent Trustees and the other directorships, if any held by the Trustees are shown below.
Name, Address, and Age of Non-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 Non-Independent Trustees | Other Directorships Held by Non-Independent Trustees During the Past 5 Years | ||||||||||||||||||
H. Bruce Bond (48) Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | 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) | 120 | None | ||||||||||||||||||
* This is the date the Non-Independent 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, 2012, the Fund Complex consisted of the Trust's 58 portfolios and three other exchange-traded fund trusts with 62 portfolios advised by the Adviser.
54
Supplemental Information (Continued)
Trustees and Officers (Continued)
Name, Address, and Age of Non-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 Non-Independent Trustees | Other Directorships Held by Non-Independent Trustees During the Past 5 Years | ||||||||||||||||||
Kevin M. Carome (55) 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 | 120 | None | ||||||||||||||||||
* This is the date the Non-Independent 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, 2012, the Fund Complex consisted of the Trust's 58 portfolios and three other exchange-traded fund trusts with 62 portfolios advised by the Adviser.
55
Supplemental Information (Continued)
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 (37) Invesco Management Group, Inc. 11 Greenway Plaza Suite 1000 Houston, TX 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) | ||||||||||||
Benjamin Fulton (50) 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 Chicagoland area (2001-2003); Managing Director of Structured Investments at Nuveen Investments (1998-2001) | ||||||||||||
Peter Hubbard (30) 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 Portfolio Manager, Invesco PowerShares Capital Management LLC (2007-2008); Research Analyst, Invesco PowerShares Capital Management LLC (2005-2007); Research Analyst and Trader, Ritchie Capital, a hedge fund operator (2003-2005) | ||||||||||||
David Warren (54) Invesco Canada Ltd. 5140 Yonge Street Suite 900 Toronto, Ontario M2N 6X7 | Vice President | Since 2009 | Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. and Chief Administrative Officer, North American Retail, Invesco Ltd. (2007-Present); formerly Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (2000-2006) | ||||||||||||
* This is the date the Officer began serving the Trust. Each Officer serves an indefinite term, until his or her successor is elected.
56
Supplemental Information (Continued)
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 | ||||||||||||
Christopher Joe (42) Invesco Management Group, Inc. 11 Greenway Plaza Suite 1000 Houston, TX 77046 | Chief Compliance Officer | Since 2012 | U.S. Compliance Director, Invesco, Ltd.; Chief Compliance Officer, Invesco Investment Advisers, LLC (registered investment adviser); formerly, Assistant Fund Accounting Manager, Invesco, Ltd. | ||||||||||||
Sheri Morris (47) Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Treasurer | Since 2011 | Vice President, Treasurer and Principal Financial Officer, The Invesco Funds; Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) and Treasurer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Fund Trust. Formerly, Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.; Assistant Vice President and Assistant Treasurer, The Invesco Funds and Assistant Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc. | ||||||||||||
Anna Paglia (37) Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Secretary | Since 2011 | Head of Legal, Invesco PowerShares Capital Management LLC (2010-Present); formerly, Partner, K&L Gates LLP (formerly, Bell Boyd & Lloyd LLP) (2007-2010). Associate Counsel at Barclays Global Investors Ltd. (2004-2006) | ||||||||||||
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) 983-0903.
* This is the date the Officer began serving the Trust. Each Officer serves an indefinite term, until his or her successor is elected.
57
Board Considerations Regarding Approval of Continuation of Investment Advisory Agreement
At a meeting held on April 19, 2012, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust (the "Trust"), including the Independent Trustees, approved the continuation of the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the "Adviser") and the Trust for the following 56 series (each, a "Fund" and collectively, the "Funds"):
PowerShares Aerospace & Defense Portfolio
PowerShares Buyback AchieversTM Portfolio
PowerShares CleantechTM Portfolio
PowerShares Dividend AchieversTM Portfolio
PowerShares DWA Technical LeadersTM Portfolio
PowerShares Dynamic Banking Portfolio
PowerShares Dynamic Basic Materials Sector Portfolio
PowerShares Dynamic Biotechnology & Genome Portfolio
PowerShares Dynamic Building & Construction Portfolio
PowerShares Dynamic Consumer Discretionary Sector Portfolio
PowerShares Dynamic Consumer Staples Sector Portfolio
PowerShares Dynamic Energy Exploration & Production Portfolio
PowerShares Dynamic Energy Sector Portfolio
PowerShares Dynamic Financial Sector Portfolio
PowerShares Dynamic Food & Beverage Portfolio
PowerShares Dynamic Healthcare Sector Portfolio
PowerShares Dynamic Industrials Sector Portfolio
PowerShares Dynamic Insurance Portfolio
PowerShares Dynamic Large Cap Growth Portfolio
PowerShares Dynamic Large Cap Value Portfolio
PowerShares Dynamic Leisure and Entertainment Portfolio
PowerShares Dynamic MagniQuant Portfolio
PowerShares Dynamic Market Portfolio
PowerShares Dynamic Media Portfolio
PowerShares Dynamic Networking Portfolio
PowerShares Dynamic Oil & Gas Services Portfolio
PowerShares Dynamic OTC Portfolio
PowerShares Dynamic Pharmaceuticals Portfolio
PowerShares Dynamic Retail Portfolio
PowerShares Dynamic Semiconductors Portfolio
PowerShares Dynamic Software Portfolio
PowerShares Dynamic Technology Sector Portfolio
PowerShares Dynamic Utilities Portfolio
PowerShares Financial Preferred Portfolio
PowerShares FTSE RAFI US 1000 Portfolio
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio
PowerShares Fundamental Pure Large Core Portfolio
PowerShares Fundamental Pure Large Growth Portfolio
PowerShares Fundamental Pure Large Value Portfolio
PowerShares Fundamental Pure Mid Core Portfolio
PowerShares Fundamental Pure Mid Growth Portfolio
PowerShares Fundamental Pure Mid Value Portfolio
PowerShares Fundamental Pure Small Core Portfolio
PowerShares Fundamental Pure Small Growth Portfolio
PowerShares Fundamental Pure Small Value Portfolio
PowerShares Global Listed Private Equity Portfolio
PowerShares Golden Dragon Halter USX China Portfolio
PowerShares High Yield Equity Dividend AchieversTM Portfolio
PowerShares International Dividend AchieversTM Portfolio
PowerShares Lux Nanotech Portfolio
PowerShares Morningstar StockInvestor Core Portfolio
PowerShares S&P 500 High Quality Portfolio
PowerShares Water Resources Portfolio
PowerShares WilderHill Clean Energy Portfolio
PowerShares WilderHill Progressive Energy Portfolio
PowerShares Zacks Micro Cap Portfolio
58
Board Considerations Regarding Approval of 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 a Fund grows, (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 for the one-year, three-year, five-year and since-inception periods ended December 31, 2011, as applicable, including reports on the correlation and tracking error between each Fund's performance and the performance of its underlying index, as well as the Adviser's analysis of the tracking error between each Fund and its underlying index. The Trustees noted that for each applicable period 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 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 daily net assets for each Fund other than PowerShares Dividend AchieversTM Portfolio, PowerShares High Yield Equity Dividend AchieversTM Portfolio, PowerShares International Dividend AchieversTM Portfolio, PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Core Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio,
59
Board Considerations Regarding Approval of Continuation of Investment Advisory Agreement (Continued)
PowerShares Fundamental Pure Small Core Portfolio, PowerShares Fundamental Pure Small Growth Portfolio and PowerShares Fundamental Pure Small Value Portfolio;
• 0.40% of the Fund's average daily net assets for each of PowerShares Dividend AchieversTM Portfolio, PowerShares High Yield Equity Dividend AchieversTM Portfolio and PowerShares International Dividend AchieversTM Portfolio; and
• 0.29% of the Fund's average daily net assets for each of PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Core Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio, PowerShares Fundamental Pure Small Growth Portfolio and PowerShares Fundamental Pure Small Value Portfolio (for each of PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Mid Core Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio, PowerShares Fundamental Pure Small Growth Portfolio and PowerShares Fundamental Pure Small Value Portfolio, the Trustees noted that the advisory fee for each of these Funds was reduced to 0.29% effective June 16, 2011).
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, 2013, as set forth below:
• 0.60%, excluding interest expenses, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses 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, acquired fund fees and expenses and extraordinary expenses, for each of PowerShares Dividend AchieversTM Portfolio, PowerShares High Yield Equity Dividend AchieversTM Portfolio and PowerShares International Dividend AchieversTM Portfolio;
• 0.50%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for each of PowerShares Morningstar StockInvestor Core Portfolio and PowerShares S&P 500 High Quality Portfolio;
• 0.39%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for each of PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Core Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio, PowerShares Fundamental Pure Small Growth Portfolio and PowerShares Fundamental Pure Small Value Portfolio (for each of PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure
60
Board Considerations Regarding Approval of Continuation of Investment Advisory Agreement (Continued)
Mid Core Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio, PowerShares Fundamental Pure Small Growth Portfolio and PowerShares Fundamental Pure Small Value Portfolio, the Trustees noted that the Expense Cap for each of these Funds was reduced to 0.39% effective June 16, 2011); and
• 0.60%, excluding interest expenses, licensing fees, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses 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 with comparable investment strategies as the Funds, except for PowerShares FTSE RAFI US 1000 Portfolio, and further noted the Adviser's representation that the advisory fee charged to the PowerShares FTSE RAFI US 1000 Portfolio was not higher than the fee the Adviser charged to its other clients with comparable investment strategies. The Trustees noted that each Fund's advisory fee (for the year ended December 31, 2011) 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 Global Listed Private Equity Portfolio and PowerShares Golden Dragon Halter USX China Portfolio, which was equal to or 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 Dynamic Large Cap Growth Portfolio, PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Growth Portfolio and PowerShares Fundamental Pure Small Value Portfolio, which was lower than the median advisory fee of its open-end index peer funds; and there was no comparable data for PowerShares Aerospace & Defense Portfolio, PowerShares CleantechTM Portfolio, PowerShares Dynamic Banking Portfolio, PowerShares Dynamic Basic Materials Sector Portfolio, PowerShares Dynamic Biotechnology & Genome Portfolio, PowerShares Dynamic Building & Construction Portfolio, PowerShares Dynamic Consumer Discretionary Sector Portfolio, PowerShares Dynamic Consumer Staples Sector Portfolio, PowerShares Dynamic Financial Sector Portfolio, PowerShares Dynamic Food & Beverage Portfolio, PowerShares Dynamic Healthcare Sector Portfolio, PowerShares Dynamic Industrials Sector Portfolio, PowerShares Dynamic Insurance Portfolio, PowerShares Dynamic Leisure and Entertainment Portfolio, PowerShares Dynamic Media Portfolio, PowerShares Dynamic Pharmaceuticals Portfolio, PowerShares Dynamic Retail Portfolio, PowerShares Financial Preferred Portfolio, PowerShares Global Listed Private Equity Portfolio or PowerShares Golden Dragon Halter USX China 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, the distinguishing factors of the Funds, and the higher administrative, operational and management oversight
61
Board Considerations Regarding Approval of Continuation of Investment Advisory Agreement (Continued)
costs for the Adviser. With respect to the Funds' expense ratios, the Trustees noted that the net expense ratio for each Fund (for the year ended December 31, 2011) 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, PowerShares Golden Dragon Halter USX China Portfolio and PowerShares S&P 500 High Quality Portfolio, which was equal to or 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 Dividend AchieversTM Portfolio, PowerShares DWA Technical LeadersTM Portfolio, PowerShares Dynamic Energy Exploration & Production Portfolio, PowerShares Dynamic Energy Sector Portfolio, PowerShares Dynamic Large Cap Growth Portfolio, PowerShares Dynamic Large Cap Value Portfolio, PowerShares Dynamic Networking Portfolio, PowerShares Oil & Gas Services Portfolio, PowerShares Dynamic OTC Portfolio, PowerShares Dynamic Semiconductors Portfolio, PowerShares Dynamic Software Portfolio, PowerShares Dynamic Technology Sector Portfolio, PowerShares Dynamic Utilities Sector Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Core Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio, PowerShares Fundamental Pure Small Growth Portfolio, PowerShares Fundamental Pure Small Value Portfolio, PowerShares High Yield Equity Dividend AchieversTM Portfolio, PowerShares Lux Nanotech Portfolio, PowerShares S&P 500 High Quality Portfolio, PowerShares Water Resources Portfolio, PowerShares WilderHill Clean Energy Portfolio and PowerShares WilderHill Progressive Energy Portfolio, which was lower than the median expense ratio of its open-end index peer funds; and there was no comparable data for PowerShares Aerospace & Defense Portfolio, PowerShares CleantechTM Portfolio, PowerShares Dynamic Banking Portfolio, PowerShares Dynamic Basic Materials Sector Portfolio, PowerShares Dynamic Biotechnology & Genome Portfolio, PowerShares Dynamic Building & Construction Portfolio, PowerShares Dynamic Consumer Discretionary Sector Portfolio, PowerShares Dynamic Consumer Staples Sector Portfolio, PowerShares Dynamic Financial Sector Portfolio, PowerShares Dynamic Food & Beverage Portfolio, PowerShares Dynamic Healthcare Sector Portfolio, PowerShares Dynamic Industrials Sector Portfolio, PowerShares Dynamic Insurance Portfolio, PowerShares Dynamic Leisure and Entertainment Portfolio, PowerShares Dynamic Media Portfolio, PowerShares Dynamic Pharmaceuticals Portfolio, PowerShares Dynamic Retail Portfolio, PowerShares Financial Preferred Portfolio, PowerShares Global Listed Private Equity Portfolio or PowerShares Golden Dragon Halter USX China 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, and noted those Funds for which license fees are included in the Funds' Expense Caps.
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.
62
Board Considerations Regarding Approval of Continuation of Investment Advisory Agreement (Continued)
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 Portfolio 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 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.
63
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) 983-0903. 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) 983-0903; 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
© 2012 Invesco PowerShares Capital Management LLC P-PS-AR-1
2012 Annual Report to Shareholders
April 30, 2012
PowerShares Aerospace & Defense Portfolio (PPA)
PowerShares CleantechTM Portfolio (PZD)
PowerShares DWA Technical LeadersTM Portfolio (PDP)
PowerShares Global Listed Private Equity Portfolio (PSP)
PowerShares Golden Dragon China Portfolio (PGJ)
(formerly PowerShares Golden Dragon Halter USX China Portfolio)
PowerShares Lux Nanotech Portfolio (PXN)
PowerShares Morningstar StockInvestor Core Portfolio (PYH)
PowerShares S&P 500 BuyWrite Portfolio (PBP)
PowerShares S&P 500® High Quality Portfolio (SPHQ)
PowerShares Water Resources Portfolio (PHO)
PowerShares WilderHill Clean Energy Portfolio (PBW)
PowerShares WilderHill Progressive Energy Portfolio (PUW)
Table of Contents
The Market Environment | 2 | ||||||
Manager's Analysis | 4 | ||||||
Frequency Distribution of Discounts & Premiums | 30 | ||||||
Fees and Expenses | 32 | ||||||
Specialty Portfolios | |||||||
Schedules of Investments | |||||||
PowerShares Aerospace & Defense Portfolio (PPA) | 34 | ||||||
PowerShares CleantechTM Portfolio (PZD) | 35 | ||||||
PowerShares DWA Technical LeadersTM Portfolio (PDP) | 37 | ||||||
PowerShares Global Listed Private Equity Portfolio (PSP) | 39 | ||||||
PowerShares Golden Dragon China Portfolio (PGJ) (formerly PowerShares Golden Dragon Halter USX China Portfolio) | 41 | ||||||
PowerShares Lux Nanotech Portfolio (PXN) | 44 | ||||||
PowerShares Morningstar StockInvestor Core Portfolio (PYH) | 45 | ||||||
PowerShares S&P 500 BuyWrite Portfolio (PBP) | 47 | ||||||
PowerShares S&P 500® High Quality Portfolio (SPHQ) | 53 | ||||||
PowerShares Water Resources Portfolio (PHO) | 55 | ||||||
PowerShares WilderHill Clean Energy Portfolio (PBW) | 56 | ||||||
PowerShares WilderHill Progressive Energy Portfolio (PUW) | 58 | ||||||
Statements of Assets and Liabilities | 60 | ||||||
Statements of Operations | 62 | ||||||
Statements of Changes in Net Assets | 64 | ||||||
Financial Highlights | 68 | ||||||
Notes to Financial Statements | 74 | ||||||
Report of Independent Registered Public Accounting Firm | 93 | ||||||
Tax Information | 94 | ||||||
Trustees and Officers | 95 | ||||||
Board Considerations Regarding Approval of Continuation of Investment Advisory Agreements | 102 | ||||||
The Market Environment
Domestic Equity:
Equity markets were volatile during the fiscal year ended April 30, 2012, but the broad market, as measured by the S&P 500® Index, still managed to post a small gain. While corporate earnings remained strong, investor enthusiasm was tempered by continuing high unemployment, sluggish consumer spending and soft housing data for most of the year. Although markets stabilized and remained generally positive in the spring and early summer, major equity indices sold off precipitously in August as the U.S. government struggled to raise the nation's debt ceiling. This led credit rating agency Standard & Poor's to announce its first-ever ratings downgrade to long-term U.S. government debt. Uncertainty created by the downgrade, combined with continuing concern about the debt crisis in the eurozone, reignited fears of a recession and pressured markets downward into the fall. As signs of muted but sustained economic growth mounted, equity markets moved off their October lows and posted strong gains through the close of the reporting period with the S&P 500® Index returning 12.8% from the end of October 2011 to the end of April 2012.
International Equity:
Many of the headwinds that buffeted global stock markets in 2010 continued through 2011, with markets posting some of their sharpest declines since 2008. Notably, the eurozone debt crisis surrounding Greece and other southern European nations, including Spain, Portugal and Italy, became an unresolved, multi-chapter economic saga during the reporting period. European Union leaders' seeming lack of clarity and direction in how to address solvency and fiscal deficit concerns increased market unrest. Although the U.S. economy continued growing during the reporting period, the Standard & Poor's downgrade of the U.S. government's credit rating, high unemployment and a still-weak housing market created uncertainty for investors. The earthquake and tsunami that battered Japan's northeast coast in March 2011 caused a prolonged nuclear disaster and disrupted global stock markets.
Market uncertainty in developed economies spilled over into emerging markets. This less-than-positive outlook, coupled with rising inflation, hampered growth in developing nations. Multiple interest rate hikes were enacted to head off inflation, which squeezed growth margins. China, often considered Asia's economic engine, also contended with the potential for a real estate bubble due to a slowing property market. Political uprisings in the Middle East shook the global economy as well.
Throughout the reporting period, investors fluctuated between risk-on and risk-off trades, which created significant positive and negative market swings. This trend pushed many asset classes into negative territory, while less-risky assets, such as bonds, tended to have positive results during the reporting period. Though stocks experienced a turbulent year, equity markets rallied in late 2011 continuing into early 2012. Despite overall slower growth, corporations in general maintained solid economic health.
2
This page intentionally left blank
Manager's Analysis
PowerShares Aerospace & Defense Portfolio (ticker: PPA)
The PowerShares Aerospace and Defense Portfolio (the "Fund") seeks investment results that generally correspond (before fees and expenses) to the price and yield of the SPADETM Defense Index (the "Index"). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index. The Index is designed to measure the performance of companies involved in the development, manufacturing, operations and support of U.S. defense, homeland security and aerospace operations.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned (1.87)%. On a Net Asset Value ("NAV") basis, the Fund returned (1.82)%. During the same reporting period, the Index returned (2.90)%, the S&P SuperComposite Aerospace & Defense Index returned 1.63%, the Dow Jones U.S. Aerospace and Defense Index returned 4.78% and the S&P 500® Index returned 4.73%. The Fund benefited from positive performance of securities of companies in the industrials and materials sectors. The Fund was hurt most by exposure to the information technology sector.
At the single stock level, the Fund benefited most from exposure to Goodrich Corp. (portfolio average weight of 4.40%), TransDigm Group, Inc. (portfolio average weight of 2.74%), and Lockheed Martin Corp. (portfolio average weight of 5.32%). The leading detractors to the Fund were SAIC, Inc. (portfolio average weight of 2.67%) ITT Corp. (no longer held at April 30, 2012) and Computer Sciences Corp. (portfolio average weight of 2.70%).
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Aerospace/Defense | 58.5 | ||||||
Electronics | 9.1 | ||||||
Miscellaneous Manufacturing | 5.9 | ||||||
Telecommunications | 5.3 | ||||||
Metal Fabricate/Hardware | 4.6 | ||||||
Computers | 3.9 | ||||||
Commercial Services | 3.9 | ||||||
Packaging & Containers | 3.8 | ||||||
Engineering & Construction | 1.9 | ||||||
Auto Manufacturers | 1.2 | ||||||
Shipbuilding | 1.1 | ||||||
Software | 0.7 | ||||||
Money Market Fund | 0.3 | ||||||
Liabilities in excess of other assets | (0.2 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Large-Cap Value | 41.0 | ||||||
Mid-Cap Growth | 19.5 | ||||||
Mid-Cap Value | 15.5 | ||||||
Small-Cap Growth | 15.1 | ||||||
Large-Cap Growth | 4.6 | ||||||
Small-Cap Value | 4.3 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
Boeing Co. (The) | 6.0 | ||||||
Honeywell International, Inc. | 5.7 | ||||||
United Technologies Corp. | 5.7 | ||||||
Lockheed Martin Corp. | 5.2 | ||||||
Northrop Grumman Corp. | 4.7 | ||||||
Raytheon Co. | 4.7 | ||||||
Precision Castparts Corp. | 4.6 | ||||||
Goodrich Corp. | 4.6 | ||||||
General Dynamics Corp. | 4.3 | ||||||
L-3 Communications Holdings, Inc. | 4.2 | ||||||
Total | 49.7 |
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, 2012 | ||||||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
SPADETM Defense Index | (2.90 | )% | 14.35 | % | (0.23 | )% | 4.58 | % | 33.86 | % | |||||||||||||
S&P SuperComposite Aerospace & Defense Index | 1.63 | % | 19.76 | % | 2.97 | % | 8.46 | % | 69.51 | % | |||||||||||||
Dow Jones U.S. Aerospace and Defense Index††† | 4.78 | % | 21.23 | % | 4.19 | % | N/A | N/A | |||||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 4.46 | % | 32.80 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | (1.82 | )% | 15.57 | % | 0.68 | % | 5.40 | % | 40.81 | % | |||||||||||||
Share Price Return | (1.87 | )% | 15.58 | % | 0.68 | % | 5.40 | % | 40.84 | % |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.73%. The Financial Highlights section of this Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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, Dow Jones U.S. 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 29, 28 and 500 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from the closest month-end to the Fund's inception date.
†† Average Annualized.
††† Dow Jones U.S. Aerospace and Defense Index tracking did not start until May 1, 2006.
5
Manager's Analysis
PowerShares CleantechTM Portfolio (ticker: PZD)
The PowerShares CleantechTM Portfolio (the "Fund") seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Cleantech IndexTM (the "Index"). The Fund generally will invest at least 90% of its total assets in securities, which may include American Depositary Receipts ("ADRs"), that comprise the Index. The Index is designed to track cleantech companies, from a broad range of industry sectors that derive at least 50% of revenue on operating profits from cleantech businesses. The Index is a modified equally weighted index currently composed of stocks of publicly traded cleantech companies and ADRs based on such stocks.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned (22.87)%. On a Net Asset Value ("NAV") basis, the Fund returned (22.65)%. During the same reporting period, the Index returned (23.41)%, while the NASDAQ Composite Index returned 6.01% and the S&P 500® Index returned 4.73%. The Fund benefited from positive performance of securities of companies in the consumer discretionary and health care sectors. The Fund was hurt most by exposure to the information technology and industrials sectors.
At the single stock level, the Fund benefited most from exposure to Nalco Holding Co. (no longer held at April 30, 2012), BorgWarner, Inc. (portfolio average weight of 1.63%), and RuggedCom, Inc. (no longer held at April 30, 2012). The leading detractors to the Fund were First Solar, Inc. (portfolio average weight of 1.82%), Vestas Wind Systems A/S (portfolio average weight of 1.76%), and Aixtron SE (no longer held at April 30, 2012).
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Miscellaneous Manufacturing | 16.7 | ||||||
Electronics | 10.1 | ||||||
Electrical Components & Equipment | 9.8 | ||||||
Machinery-Diversified | 7.3 | ||||||
Auto Parts & Equipment | 7.0 | ||||||
Environmental Control | 6.8 | ||||||
Semiconductors | 5.9 | ||||||
Engineering & Construction | 5.7 | ||||||
Software | 5.4 | ||||||
Telecommunications | 4.7 | ||||||
Energy-Alternate Sources | 3.7 | ||||||
Electric | 3.4 | ||||||
Commercial Services | 3.2 | ||||||
Biotechnology | 2.6 | ||||||
Chemicals | 2.6 | ||||||
Building Materials | 2.0 | ||||||
Healthcare-Services | 1.7 | ||||||
Hand/Machine Tools | 1.0 | ||||||
Mining | 0.4 | ||||||
Money Market Fund | 9.8 | ||||||
Liabilities in excess of other assets | (9.8 | ) |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
Corning, Inc. | 3.2 | ||||||
SGS SA | 3.2 | ||||||
Johnson Controls, Inc. | 3.1 | ||||||
Roper Industries, Inc. | 3.0 | ||||||
Pall Corp. | 2.9 | ||||||
Alfa Laval AB | 2.9 | ||||||
Schneider Electric SA | 2.9 | ||||||
Siemens AG | 2.9 | ||||||
ABB Ltd. | 2.8 | ||||||
Autodesk, Inc. | 2.7 | ||||||
Total | 29.6 |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Mid-Cap Growth | 38.1 | ||||||
Small-Cap Growth | 22.5 | ||||||
Large-Cap Growth | 19.8 | ||||||
Large-Cap Value | 7.4 | ||||||
Mid-Cap Value | 7.3 | ||||||
Small-Cap Value | 4.9 |
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, 2012 | ||||||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Cleantech IndexTM | (23.41 | )% | 5.88 | % | (3.36 | )% | (1.39 | )% | (7.45 | )% | |||||||||||||
NASDAQ Composite Index | 6.01 | % | 21.05 | % | 3.82 | % | 4.70 | % | 28.72 | % | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 2.44 | % | 14.16 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | (22.65 | )% | 6.63 | % | (2.93 | )% | (1.02 | )% | (5.51 | )% | |||||||||||||
Share Price Return | (22.87 | )% | 6.33 | % | (3.00 | )% | (1.08 | )% | (5.83 | )% |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.74%. The Financial Highlights section of this Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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 2,529 and 500 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from 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 generally correspond (before fees and expenses) to the price and yield of the Dorsey Wright Technical LeadersTM Index (the "Index"). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index. The Index includes approximately 100 U.S.-listed companies that demonstrate powerful relative strength characteristics. The Index is constructed pursuant to Dorsey Wright's proprietary methodology, which takes into account, among other factors, the performance of each of the 1,000 largest U.S.-listed companies as compared to a benchmark index, and the relative performance of industry sectors and sub-sectors.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned 5.15%. On a Net Asset Value ("NAV") basis, the Fund returned 5.22%. During the same reporting period, the Index returned 4.54%, while the S&P 500® Growth Index returned 8.12%, the Russell 3000® Growth Index returned 6.26% and the S&P 500® Index returned 4.73%. The Fund benefited most from positive performance of securities of companies in the consumer discretionary and health care sectors. The Fund was hurt by exposure to the energy and industrials sectors.
At the single stock level, the Fund benefited most from exposure to Apple, Inc. (portfolio average weight of 3.13%), Alexion Pharmaceuticals, Inc. (portfolio average weight of 1.75%), and O'Reilly Automotive, Inc. (portfolio average weight of 1.39%). The leading detractors to the Fund were Netflix, Inc., Energen Corp. and Green Mountain Coffee Roasters, Inc. (these stocks were no longer held at April 30, 2012).
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Consumer Discretionary | 32.6 | ||||||
Industrials | 15.2 | ||||||
Materials | 14.6 | ||||||
Financials | 12.7 | ||||||
Information Technology | 8.8 | ||||||
Health Care | 7.1 | ||||||
Consumer Staples | 5.8 | ||||||
Energy | 1.8 | ||||||
Utilities | 1.4 | ||||||
Money Market Fund | 0.1 | ||||||
Liabilities in excess of other assets | (0.1 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Mid-Cap Value | 33.6 | ||||||
Large-Cap Growth | 32.0 | ||||||
Mid-Cap Growth | 24.2 | ||||||
Large-Cap Value | 8.4 | ||||||
Small-Cap Growth | 1.2 | ||||||
Small-Cap Value | 0.6 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
Priceline.com, Inc. | 3.1 | ||||||
American Tower Corp. | 3.1 | ||||||
General Growth Properties, Inc. | 3.0 | ||||||
Apple, Inc. | 2.9 | ||||||
Silgan Holdings, Inc. | 2.9 | ||||||
O'Reilly Automotive, Inc. | 2.7 | ||||||
Liberty Media Corp. - Liberty Capital, Class A | 2.5 | ||||||
J.B. Hunt Transport Services, Inc. | 2.3 | ||||||
Las Vegas Sands Corp. | 2.2 | ||||||
Alexion Pharmaceuticals, Inc. | 2.1 | ||||||
Total | 26.8 |
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, 2012 | ||||||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Dorsey Wright Technical LeadersTM Index | 4.54 | % | 25.45 | % | 1.88 | % | 3.13 | % | 17.23 | % | |||||||||||||
S&P 500® Growth Index | 8.12 | % | 20.49 | % | 3.84 | % | 4.82 | % | 27.54 | % | |||||||||||||
Russell 3000® Growth Index | 6.26 | % | 21.47 | % | 4.04 | % | 4.92 | % | 28.14 | % | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 2.04 | % | 11.00 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | 5.22 | % | 25.81 | % | 2.02 | % | 3.26 | % | 18.01 | % | |||||||||||||
Share Price Return | 5.15 | % | 25.84 | % | 1.96 | % | 3.22 | % | 17.77 | % |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.71%. The Financial Highlights section of this Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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® 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 279, 1,750 and 500 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from 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 generally correspond (before fees and expenses) to the price and yield of the Red Rocks Global Listed Private Equity IndexSM (the "Index"). The Fund generally will invest at least 90% of its total assets in securities, which may include American Depositary Receipts and global depositary receipts, that comprise the Index. The Index includes between 40 and 75 publicly listed private equity companies, including business development companies, master limited partnerships and other vehicles whose principal business is to invest in, lend capital to or provide services to privately held companies.
Prior to September 30, 2009, the Fund's underlying index was the Red Rocks Capital Listed Private Equity IndexSM. The Blended-Index is comprised of the original underlying index from Fund inception through the conversion date, September 29, 2009, followed by the performance of the new underlying index starting at the conversion date and through April 30, 2012.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned (19.80)%. On a Net Asset Value ("NAV") basis, the Fund returned (19.51)%. During the same reporting period, the Index returned (18.66)%, while the Blended-Index returned (18.66)%, the S&P 500® Financials Index returned (4.10)%. The Fund benefited most from positive performance of securities of companies in China, Canada, and South Africa. The Fund was hurt most from negative performance of securities of companies in Sweden, France, and the United States.
At the single stock level, the Fund benefited most from exposure to Fosun International (portfolio average weight of 1.16%) and Brait SE (portfolio average weight of 1.05%). The leading detractors to the Fund were Ratos AB (portfolio average weight of 4.54%), Leucadia National Corp. (portfolio average weight of 4.39%), and Wendel (portfolio average weight of 3.52%).
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Private Equity | 28.5 | ||||||
Investment Companies | 28.3 | ||||||
Holding Companies-Diversified | 18.7 | ||||||
Diversified Financial Services | 8.1 | ||||||
Miscellaneous Manufacturing | 2.3 | ||||||
Food | 1.8 | ||||||
Equity Fund | 1.6 | ||||||
Internet | 1.0 | ||||||
Water | 0.8 | ||||||
Money Market Fund | 9.6 | ||||||
Liabilities in excess of other assets | (0.7 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Mid-Cap Value | 36.9 | ||||||
Small-Cap Growth | 18.6 | ||||||
Mid-Cap Growth | 17.7 | ||||||
Small-Cap Value | 16.9 | ||||||
Large-Cap Value | 4.9 | ||||||
Large-Cap Growth | 2.5 | ||||||
Unclassified | 2.5 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
Onex Corp. | 4.9 | ||||||
Hal Trust | 4.5 | ||||||
Ratos AB | 4.2 | ||||||
Leucadia National Corp. | 4.1 | ||||||
American Capital Ltd. | 3.9 | ||||||
Ares Capital Corp. | 3.8 | ||||||
Eurazeo | 3.7 | ||||||
Partners Group Holding AG | 3.7 | ||||||
3i Group PLC | 3.6 | ||||||
Ackermans & van Haaren NV | 3.2 | ||||||
Total | 39.6 |
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, 2012 | ||||||||||||||||||||||
Avg Ann††† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann††† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Blended – Red Rocks Global Listed Private Equity IndexSM†† | (18.66 | )% | 20.91 | % | (12.02 | )% | (9.11 | )% | (40.94 | )% | |||||||||||||
Red Rocks Global Listed Private Equity IndexSM | (18.66 | )% | 21.73 | % | N/A | N/A | N/A | ||||||||||||||||
S&P 500® Financials Index | (4.10 | )% | 14.26 | % | (14.13 | )% | (12.05 | )% | (50.64 | )% | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | (19.51 | )% | 16.67 | % | (15.36 | )% | (12.22 | )% | (51.25 | )% | |||||||||||||
Share Price Return | (19.80 | )% | 16.82 | % | (15.32 | )% | (12.18 | )% | (51.15 | )% |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 2.58% including estimated acquired fund fees and expenses of 1.85%. The Financial Highlights section of this Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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® Financials Index (the "Benchmark Index") is an unmanaged index used as a measurement of change in stock market conditions based on the average performance of approximately 81 common stocks.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Index is calculated from the closest month-end to the Fund's inception date.
†† The "Blended-Index" is comprised of the original underlying Index from Fund inception through the conversion date, September 29, 2009, followed by the performance of the new underlying index starting at the conversion date and through April 30, 2012.
††† Average Annualized.
11
Manager's Analysis
PowerShares Golden Dragon China Portfolio (ticker: PGJ)
The PowerShares Golden Dragon China Portfolio (the "Fund") seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Halter USX China IndexSM (the "Index"). The Fund generally will invest at least 90% of its total assets in equity securities that comprise the Index. The Index is composed of U.S.-listed securities of companies that derive a majority of their revenue from the People's Republic of China. The Index is designed to include stocks that provide access to the unique economic opportunities taking place in China while still providing investors with the transparency offered with U.S.-listed securities.
Effective April 30, 2012, the Fund's name changed to PowerShares Golden Dragon China Portfolio from PowerShares Golden Dragon Halter USX China Portfolio.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned (23.93)%. On a Net Asset Value ("NAV") basis, the Fund returned (23.98)%. During the same reporting period, the Index returned (23.74)%, while the MSCI China Index returned (11.15)%, the FTSE/Xinhua China Index returned (12.84)% and the S&P 500® Index returned 4.73%. The Fund benefited from positive performance of securities of companies in the utilities and telecommunication services sectors. The Fund was hurt most by exposure to the information technology and consumer discretionary sectors.
At the single stock level, the Fund benefited most from exposure to Netease, Inc. American Depositary Receipt ("ADR") (portfolio average weight of 3.36%), Huaneng Power International, Inc. ADR (portfolio average weight of 3.71%), and China Mobile Ltd. ADR (portfolio average weight of 4.75%). The leading detractors to the Fund were SINA Corp. (portfolio average weight of 2.73%), Aluminum Corp. of China Ltd. ADR (portfolio average weight of 4.07%), and Yanzhou Coal Mining Co. Ltd. ADR (portfolio average weight of 4.51%).
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Information Technology | 25.0 | ||||||
Energy | 19.6 | ||||||
Telecommunication Services | 14.9 | ||||||
Consumer Discretionary | 10.3 | ||||||
Industrials | 8.2 | ||||||
Materials | 6.4 | ||||||
Financials | 5.6 | ||||||
Utilities | 4.9 | ||||||
Health Care | 4.2 | ||||||
Consumer Staples | 0.9 | ||||||
Money Market Fund | 23.4 | ||||||
Liabilities in excess of other assets | (23.4 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Large-Cap Growth | 36.5 | ||||||
Large-Cap Value | 22.7 | ||||||
Mid-Cap Value | 16.5 | ||||||
Mid-Cap Growth | 11.6 | ||||||
Small-Cap Growth | 11.6 | ||||||
Small-Cap Value | 1.1 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
PetroChina Co. Ltd. ADR | 6.0 | ||||||
China Mobile Ltd. ADR | 5.6 | ||||||
Baidu, Inc. ADR | 5.1 | ||||||
Huaneng Power International, Inc. ADR | 4.8 | ||||||
China Unicom (Hong Kong) Ltd. ADR | 4.7 | ||||||
China Life Insurance Co. Ltd. ADR | 4.7 | ||||||
CNOOC Ltd. ADR | 4.6 | ||||||
NetEase, Inc. ADR | 4.6 | ||||||
China Telecom Corp. Ltd. ADR | 4.5 | ||||||
Yanzhou Coal Mining Co. Ltd. ADR | 4.5 | ||||||
Total | 49.1 |
12
Manager's Analysis (Continued)
PowerShares Golden Dragon China Portfolio (ticker: PGJ)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2012 | ||||||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Halter USX China IndexSM | (23.74 | )% | 9.47 | % | 1.76 | % | 7.25 | % | 67.73 | % | |||||||||||||
MSCI China Index | (11.15 | )% | 11.89 | % | 4.92 | % | 14.74 | % | 177.29 | % | |||||||||||||
FTSE/Xinhua China Index | (12.84 | )% | 8.89 | % | 3.43 | % | 12.51 | % | 139.62 | % | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 4.52 | % | 38.76 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | (23.98 | )% | 8.62 | % | 1.19 | % | 6.59 | % | 60.28 | % | |||||||||||||
Share Price Return | (23.93 | )% | 8.47 | % | 1.11 | % | 6.50 | % | 59.25 | % |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.72%. The Financial Highlights section of this Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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 148, 25 and 500 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from 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 generally correspond (before fees and expenses) to the price and yield of the Lux Nanotech IndexTM (the "Index"). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index. The Index includes companies involved in developing, manufacturing and funding nanotechnology applications. Companies may be involved in one or more stages of Lux's Nanotechnolgy Value Chain frameworks: Nanomaterials, Nanointermediates, Nano-enabled Products and Nanotools.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned (34.09)%. On a Net Asset Value ("NAV") basis, the Fund returned (33.40)%. During the same reporting period, the Index returned (36.78)%, while the S&P 500® Index returned 4.73%. The Fund benefited most from positive performance of securities of companies in pharmaceuticals, construction materials, and electrical components and equipment industries. The Fund was hurt most by exposure to electrical equipment, biotechnology, and life sciences tools & services industries.
At the single stock level, the Fund benefited most from exposure to Elan Corp. PLC American Depositary Receipt ("ADR") (portfolio average weight of 7.43%), Headwaters, Inc. (portfolio average weight of 5.26%), and FEI Co. (portfolio average weight of 5.36%). The leading detractors to the Fund were BioDelivery Sciences International, Inc. (no longer held at April 30, 2012), Ener1, Inc. (no longer held at April 30, 2012), and Nanosphere, Inc. (portfolio average weight of 3.10%).
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Semiconductors | 12.6 | ||||||
Miscellaneous Manufacturing | 11.1 | ||||||
Electronics | 10.3 | ||||||
Pharmaceuticals | 10.1 | ||||||
Biotechnology | 9.7 | ||||||
Electrical Components & Equipment | 8.4 | ||||||
Computers | 6.0 | ||||||
Chemicals | 5.7 | ||||||
Software | 5.4 | ||||||
Building Materials | 5.2 | ||||||
Healthcare-Products | 5.0 | ||||||
Investment Companies | 4.8 | ||||||
Auto Manufacturers | 2.8 | ||||||
Engineering & Construction | 2.8 | ||||||
Money Market Fund | 18.9 | ||||||
Liabilities in excess of other assets | (18.8 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Small-Cap Growth | 63.9 | ||||||
Large-Cap Growth | 14.7 | ||||||
Large-Cap Value | 8.5 | ||||||
Small-Cap Value | 8.0 | ||||||
Mid-Cap Growth | 4.9 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
Accelrys, Inc. | 5.4 | ||||||
FEI Co. | 5.4 | ||||||
Polypore International, Inc. | 5.3 | ||||||
Veeco Instruments, Inc. | 5.3 | ||||||
Headwaters, Inc. | 5.2 | ||||||
Flamel Technologies SA ADR | 5.2 | ||||||
SurModics, Inc. | 5.0 | ||||||
NVE Corp. | 5.0 | ||||||
Vical, Inc. | 5.0 | ||||||
Elan Corp. PLC ADR | 5.0 | ||||||
Total | 51.8 |
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, 2012 | ||||||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Lux Nanotech IndexTM | (36.78 | )% | (6.94 | )% | (18.96 | )% | (13.44 | )% | (60.92 | )% | �� | ||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 4.46 | % | 32.80 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | (33.40 | )% | (5.49 | )% | (18.19 | )% | (12.47 | )% | (57.98 | )% | |||||||||||||
Share Price Return | (34.09 | )% | (5.53 | )% | (18.26 | )% | (12.48 | )% | (58.01 | )% |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 1.25% including estimated acquired fund fees and expenses of 0.30%. The Financial Highlights section of this Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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 (the "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 Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Index is calculated from the closest month-end to the Fund's inception date.
†† Average Annualized.
15
Manager's Analysis
PowerShares Morningstar StockInvestor Core Portfolio (ticker: PYH)
The PowerShares Morningstar StockInvestor Core Portfolio (the "Fund") seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Morningstar® StockInvestor Core IndexSM (the "Index"). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index. The Index is composed of approximately 50 stocks of high-quality companies selected by Morningstar.
Prior to June 30, 2010, the Fund's underlying index was the Value Line Industry Rotation Index. The Blended-Index is comprised of the original underlying index from Fund inception through the conversion date, June 29, 2010, followed by the performance of the new underlying index starting at the conversion date and through April 30, 2012.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned 1.32%. On a Net Asset Value ("NAV") basis, the Fund returned 1.32%. During the same reporting period, the Index returned 1.86%, while the Blended-Index returned 1.86%, the S&P 500® Growth Index returned 8.12%, the Russell 3000® Growth Index returned 6.26% and the S&P 500® Index returned 4.73%. The Fund benefited most from positive performance of securities of companies in information technology and health care sectors. The Fund was hurt most by exposure to materials and financials sectors.
At the single stock level, the Fund benefited most from exposure to Discover Financial Services (portfolio average weight of 3.44%), MasterCard, Inc. (portfolio average weight of 3.14%), and Abbott Laboratories (portfolio average weight of 4.24%). The leading detractors to the Fund were St. Joe Co. (The) (portfolio average weight of 4.95%) Cloud Peak Energy, Inc. (portfolio average weight of 2.11%) and Compass Minerals International, Inc. (portfolio average weight of 4.16%).
16
Manager's Analysis (Continued)
PowerShares Morningstar StockInvestor Core Portfolio (ticker: PYH)
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Pharmaceuticals | 14.9 | ||||||
Commercial Services | 13.2 | ||||||
Retail | 7.7 | ||||||
Diversified Financial Services | 6.4 | ||||||
Internet | 6.0 | ||||||
Software | 5.5 | ||||||
Mining | 5.1 | ||||||
Insurance | 4.8 | ||||||
Real Estate | 4.7 | ||||||
Oil & Gas | 3.8 | ||||||
Pipelines | 3.7 | ||||||
Electric | 3.6 | ||||||
Entertainment | 2.7 | ||||||
Healthcare-Products | 2.0 | ||||||
Beverages | 2.0 | ||||||
Textiles | 2.0 | ||||||
Aerospace/Defense | 1.9 | ||||||
Food | 1.7 | ||||||
Banks | 1.6 | ||||||
Coal | 1.5 | ||||||
Telecommunications | 1.3 | ||||||
Cosmetics/Personal Care | 1.2 | ||||||
Miscellaneous Manufacturing | 1.1 | ||||||
Computers | 0.8 | ||||||
Building Materials | 0.8 | ||||||
Money Market Fund | 5.5 | ||||||
Liabilities in excess of other assets | (5.5 | ) |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
St. Joe Co. (The) | 4.7 | ||||||
Abbott Laboratories | 4.5 | ||||||
Lowe's Cos., Inc. | 3.9 | ||||||
Exxon Mobil Corp. | 3.9 | ||||||
Compass Minerals International, Inc. | 3.8 | ||||||
Exelon Corp. | 3.6 | ||||||
Berkshire Hathaway, Inc., Class B | 3.5 | ||||||
MasterCard, Inc., Class A | 3.4 | ||||||
eBay, Inc. | 3.4 | ||||||
Express Scripts Holding Co. | 3.1 | ||||||
Total | 37.8 |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Large-Cap Growth | 41.6 | ||||||
Large-Cap Value | 25.0 | ||||||
Mid-Cap Growth | 13.0 | ||||||
Small-Cap Growth | 7.5 | ||||||
Small-Cap Value | 7.0 | ||||||
Mid-Cap Value | 5.9 |
17
Manager's Analysis (Continued)
PowerShares Morningstar StockInvestor Core Portfolio (ticker: PYH)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2012 | ||||||||||||||||||||||
Avg Ann††† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann††† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Blended – Morningstar® StockInvestor Core IndexSM†† | 1.86 | % | 14.45 | % | (3.61 | )% | (1.41 | )% | (7.39 | )% | |||||||||||||
Morningstar® StockInvestor Core IndexSM | 1.86 | % | N/A | N/A | N/A | N/A | |||||||||||||||||
S&P 500® Growth Index | 8.12 | % | 20.49 | % | 3.84 | % | 4.47 | % | 26.73 | % | |||||||||||||
Russell 3000® Growth Index | 6.26 | % | 21.47 | % | 4.04 | % | 4.88 | % | 29.43 | % | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 2.12 | % | 12.03 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | 1.32 | % | 13.19 | % | (4.14 | )% | (1.90 | )% | (9.86 | )% | |||||||||||||
Share Price Return | 1.32 | % | 13.20 | % | (4.15 | )% | (1.91 | )% | (9.90 | )% |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 1.81%. The Financial Highlights section of this Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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® 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 279, 1,750 and 500 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from the closest month-end to the Fund's inception date.
†† The "Blended-Index" is comprised of the original underlying Index from Fund inception through the conversion date, June 29, 2010, followed by the performance of the new underlying index starting at the conversion date and through April 30, 2012.
††† Average Annualized.
18
This page intentionally left blank
19
Manager's Analysis
PowerShares S&P 500 BuyWrite Portfolio (ticker: PBP)
The PowerShares S&P 500 BuyWrite Portfolio (the "Fund") seeks investment results that generally correspond (before fees and expenses) to the price and yield of the CBOE S&P 500 BuyWrite Index (the "Index"). The Fund generally will invest at least 80% of its total assets in common stocks of the 500 companies included in the S&P 500® Index and will write (sell) call options thereon. The Index measures the total rate of return of an S&P 500® covered call strategy. This strategy consists of holding a portfolio indexed to the S&P 500® Index and selling a succession of written options, each with an exercise price at or above the prevailing price level of the S&P 500®. The Index provides a benchmark measure of the total return performance of this hypothetical strategy.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned 7.02%. On a Net Asset Value ("NAV") basis, the Fund returned 6.74%. During the same reporting period, the Index returned 7.63%, while the S&P 500® Index returned 4.73%. The Fund benefited most from positive performance of securities of companies in information technology, consumer discretionary, consumer staples, and health care sectors. The Fund was hurt most by exposure to energy and financials sectors.
At the single stock level, the Fund benefited most from exposure to Apple, Inc. (portfolio average weight of 3.41%), Microsoft Corp. (portfolio average weight of 1.78%), and International Business Machines Corp. (portfolio average weight of 1.90%). The leading detractors to the Fund were Citigroup, Inc. (portfolio average weight of 0.84%), Hewlett-Packard Co. (portfolio average weight of 0.52%), and Bank of America Corp. (portfolio average weight of 0.72%).
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Information Technology | 20.6 | ||||||
Financials | 14.9 | ||||||
Health Care | 11.6 | ||||||
Energy | 11.4 | ||||||
Consumer Discretionary | 11.4 | ||||||
Consumer Staples | 11.0 | ||||||
Industrials | 10.7 | ||||||
Utilities | 3.5 | ||||||
Materials | 3.5 | ||||||
Telecommunication Services | 2.9 | ||||||
Liabilities in excess of other assets | (1.5 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Large-Cap Growth | 46.0 | ||||||
Large-Cap Value | 40.7 | ||||||
Mid-Cap Growth | 7.8 | ||||||
Mid-Cap Value | 5.3 | ||||||
Small-Cap Growth | 0.1 | ||||||
Small-Cap Value | 0.1 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
Apple, Inc. | 4.4 | ||||||
Exxon Mobil Corp. | 3.3 | ||||||
International Business Machines Corp. | 1.9 | ||||||
Microsoft Corp. | 1.9 | ||||||
Chevron Corp. | 1.7 | ||||||
General Electric Co. | 1.7 | ||||||
AT&T, Inc. | 1.6 | ||||||
Johnson & Johnson | 1.4 | ||||||
Wells Fargo & Co. | 1.4 | ||||||
Procter & Gamble Co. (The) | 1.4 | ||||||
Total | 20.7 |
20
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, 2012 | ||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Year | Avg Ann†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
CBOE S&P 500 BuyWrite Index | 7.63 | % | 13.73 | % | 1.46 | % | 6.53 | % | |||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.08 | % | 4.74 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | 6.74 | % | 12.75 | % | 0.59 | % | 2.62 | % | |||||||||||
Share Price Return | 7.02 | % | 12.73 | % | 0.66 | % | 2.89 | % |
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 or sold on the secondary market, may be worth more or less than their original cost. According to the Fund's current prospectus, the Fund's expense ratio was indicated as 0.75%, is expressed as a unitary management 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 results that actual 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 (the "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 Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Index is calculated from the closest month-end to the Fund's inception date.
†† Average Annualized.
21
Manager's Analysis
PowerShares S&P 500® High Quality Portfolio (ticker: SPHQ)
The PowerShares S&P 500® High Quality Portfolio (the "Fund") seeks investment results that generally correspond (before fees and expenses) to the price and yield of the S&P 500® High Quality Rankings Index (the "Index"). The Fund generally will invest at least 90% of its total assets in securities that comprise the Index. The Index is designed to provide exposure to the constituents of the S&P 500® Index that are identified as stocks reflecting long-term growth and stability of a company's earnings and dividends.
Prior to June 30, 2010, the Fund's underlying index was the Value Line Timeliness Select Index. The Blended-Index is comprised of the original underlying index from Fund inception through the conversion date, June 29, 2010, followed by the performance of the new underlying index starting at the conversion date and through April 30, 2012. Effective March 1, 2012, the ticker changed to SPHQ from PIV.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned 7.04%. On a Net Asset Value ("NAV") basis, the Fund returned 7.04%. During the same reporting period, the Index returned 7.53%, while the Blended-Index returned 7.53%, the S&P 500® Growth Index returned 8.12%, the Russell 3000® Growth Index returned 6.26% and the S&P 500® Index returned 4.73%. The Fund benefited most from positive performance of securities of companies in the consumer discretionary, consumer staples, and materials sectors. The Fund was hurt most by exposure to the industrials and energy sectors.
At the single stock level, the Fund benefited most from exposure to Ross Stores, Inc. (portfolio average weight of 1.30%), TJX Cos, Inc. (The) (portfolio average weight of 1.30%), and W.W. Grainger, Inc. (portfolio average weight of 1.28%). The leading detractors to the Fund were Expeditors International of Washington, Inc. (portfolio average weight of 1.17%), C.H. Robinson Worldwide, Inc. (portfolio average weight of 1.17%), and Hudson City Bancorp, Inc. (portfolio average weight of 0.74%).
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Industrials | 24.7 | ||||||
Consumer Staples | 20.7 | ||||||
Consumer Discretionary | 18.3 | ||||||
Health Care | 9.4 | ||||||
Materials | 7.5 | ||||||
Financials | 5.7 | ||||||
Utilities | 5.4 | ||||||
Information Technology | 4.9 | ||||||
Energy | 3.4 | ||||||
Money Market Fund | 0.1 | ||||||
Liabilities in excess of other assets | (0.1 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Large-Cap Growth | 35.7 | ||||||
Large-Cap Value | 33.5 | ||||||
Mid-Cap Value | 17.1 | ||||||
Mid-Cap Growth | 13.7 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
L-3 Communications Holdings, Inc. | 1.2 | ||||||
Walgreen Co. | 1.2 | ||||||
Coca-Cola Co. (The) | 1.2 | ||||||
Chevron Corp. | 1.2 | ||||||
Omnicom Group, Inc. | 1.2 | ||||||
Family Dollar Stores, Inc. | 1.2 | ||||||
Emerson Electric Co. | 1.2 | ||||||
TJX Cos., Inc. (The) | 1.2 | ||||||
Ross Stores, Inc. | 1.2 | ||||||
3M Co. | 1.2 | ||||||
Total | 12.0 |
22
Manager's Analysis (Continued)
PowerShares S&P 500® High Quality Portfolio (ticker: SPHQ)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2012 | ||||||||||||||||||||||
Avg Ann††† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann††† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Blended – S&P 500® High Quality Rankings Index†† | 7.53 | % | 18.26 | % | (2.08 | )% | 0.26 | % | 1.69 | % | |||||||||||||
S&P 500® High Quality Rankings Index | 7.53 | % | N/A | N/A | N/A | N/A | |||||||||||||||||
S&P 500® Growth Index | 8.12 | % | 20.49 | % | 3.84 | % | 5.37 | % | 39.87 | % | |||||||||||||
Russell 3000® Growth Index | 6.26 | % | 21.47 | % | 4.04 | % | 5.48 | % | 40.84 | % | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 3.92 | % | 27.96 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | 7.04 | % | 18.11 | % | (2.08 | )% | 0.32 | % | 2.03 | % | |||||||||||||
Share Price Return | 7.04 | % | 18.11 | % | (2.08 | )% | 0.24 | % | 1.57 | % |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.84%. The Financial Highlights section of this Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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® 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 279, 1,750 and 500 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from the closest month-end to the Fund's inception date.
†† The "Blended-Index" is comprised of the original underlying Index from Fund inception through the conversion date, June 29, 2010, followed by the performance of the new underlying index starting at the conversion date and through April 30, 2012.
††† Average Annualized.
23
Manager's Analysis
PowerShares Water Resources Portfolio (ticker: PHO)
The PowerShares Water Resources Portfolio (the "Fund") seeks investment results that generally correspond (before fees and expenses) to the price and yield of the NASDAQ OMX US Water IndexSM (the "Index"). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index. The Index seeks to track the performance of U.S. exchange-traded companies that create products designed to conserve and purify water for homes, businesses and industries.
Effective March 1, 2012, the Fund's index changed from the Palisades Water Index to the NASDAQ OMX US Water IndexSM. The Blended-Index is comprised of the original underlying index from inception through the conversion date, February 29, 2012, followed by the performance of the new underlying index starting at the conversion date and through April 30, 2012.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned (6.59)%. On a Net Asset Value ("NAV") basis, the Fund returned (6.59)%. During the same reporting period, the Blended-Index returned (5.64)%, while the Palisades Water Index returned (3.44)%, the ISE Water Index returned (1.10)% and the S&P 500® Index returned 4.73%. The Fund was hurt most by exposure to the industrials and utilities sectors.
At the single stock level, the Fund benefited most from exposure to Nalco Holding Co. (no longer held at April 30, 2012), Cia de Saneamento Basico do Estado de Sao Paulo American Depositary Receipt ("ADR") (portfolio average weight of 2.46%), and Pentair, Inc. (portfolio average weight of 4.04%). The leading detractors to the Fund were Veolia Environnement SA ADR (portfolio average weight of 3.92%), ITT Corp. (portfolio average weight of 2.95%), and Itron, Inc. (portfolio average weight of 3.68%).
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Water | 25.6 | ||||||
Miscellaneous Manufacturing | 19.2 | ||||||
Electronics | 17.0 | ||||||
Machinery-Diversified | 12.8 | ||||||
Metal Fabricate/Hardware | 7.5 | ||||||
Environmental Control | 7.1 | ||||||
Housewares | 4.2 | ||||||
Engineering & Construction | 3.7 | ||||||
Hand/Machine Tools | 2.8 | ||||||
Agriculture | 0.1 | ||||||
Money Market Fund | 3.4 | ||||||
Liabilities in excess of other assets | (3.4 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Mid-Cap Value | 25.1 | ||||||
Small-Cap Value | 25.1 | ||||||
Mid-Cap Growth | 23.6 | ||||||
Small-Cap Growth | 22.0 | ||||||
Large-Cap Value | 4.2 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
American Water Works Co., Inc. | 8.0 | ||||||
Flowserve Corp. | 7.8 | ||||||
Pall Corp. | 7.5 | ||||||
Waters Corp. | 7.5 | ||||||
ITT Corp. | 7.2 | ||||||
Veolia Environnement SA ADR | 4.8 | ||||||
Pentair, Inc. | 4.5 | ||||||
Valmont Industries, Inc. | 4.5 | ||||||
Toro Co. (The) | 4.2 | ||||||
Cia de Saneamento Basico do Estado de Sao Paulo ADR | 4.2 | ||||||
Total | 60.2 |
24
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, 2012 | ||||||||||||||||||||||
Avg Ann††† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann††† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Blended – NASDAQ OMX US Water IndexSM†† | (5.64 | )% | 11.57 | % | 1.81 | % | 5.37 | % | 39.74 | % | |||||||||||||
NASDAQ OMX US Water IndexSM†† | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||
Palisades Water Index†† | (3.44 | )% | 12.43 | % | 2.28 | % | 6.08 | % | 46.02 | % | |||||||||||||
ISE Water Index | (1.10 | )% | 14.56 | % | 3.51 | % | 7.16 | % | 55.84 | % | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 3.92 | % | 27.96 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | (6.59 | )% | 10.91 | % | 0.11 | % | 3.88 | % | 27.57 | % | |||||||||||||
Share Price Return | (6.59 | )% | 10.95 | % | 0.10 | % | 3.69 | % | 26.10 | % |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses in the past, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.66%. The Financial Highlights section of this Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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 Palisades Water Index, 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 30, 36 and 500 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from the closest month-end to the Fund's inception date.
†† Prior to March 1, 2012 the Fund sought to replicate, before fees and expenses, the performance of the Palisades Water Index. Effective March 1, 2012 the Fund seeks to replicate, before fees and expenses, the performance of the NASDAQ OMX US Water IndexSM. "1 Year," "3 Years," "5 Years" and "Fund Inception" performance for the NASDAQ OMX US Water IndexSM is not available because that Index did not commence calculation and publication until July 27, 2011. The "Blended-Index" is comprised of the original underlying Index from Fund inception through the conversion date, February 29, 2012, followed by the performance of the new underlying index starting at the conversion date and through April 30, 2012.
††† Average Annualized.
25
Manager's Analysis
PowerShares WilderHill Clean Energy Portfolio (ticker: PBW)
The PowerShares WilderHill Clean Energy Portfolio (the "Fund") seeks investment results that generally correspond (before fees and expenses) to the price and yield of the WilderHill Clean Energy Index (the "Index"). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index. The Index includes companies that focus on greener and generally renewable sources of energy and technologies that facilitate cleaner energy.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned (49.68)%. On a Net Asset Value ("NAV") basis, the Fund returned (49.78)%. During the same reporting period, the Index returned (50.71)%, while the NASDAQ Composite Index returned 6.01% and the S&P 500® Index returned 4.73%. The Fund benefited from positive performance of securities of companies in the utilities and consumer staples sectors. The Fund was hurt most by exposure to information technology and industrials sectors.
At the single stock level, the Fund benefited most from exposure to Universal Display Corp. (portfolio average weight of 2.29%), Kaydon Corp. (portfolio average weight of 1.78%), and Quanta Services, Inc. (portfolio average weight of 2.39%). The leading detractors to the Fund were Amyris, Inc. (portfolio average weight of 1.68%), First Solar, Inc. (portfolio average weight of 1.87%), and Rare Element Resources Ltd. (portfolio average weight of 1.72%).
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Electrical Components & Equipment | 18.8 | ||||||
Semiconductors | 15.7 | ||||||
Energy-Alternate Sources | 15.6 | ||||||
Electric | 15.2 | ||||||
Chemicals | 9.5 | ||||||
Auto Parts & Equipment | 4.2 | ||||||
Mining | 4.0 | ||||||
Electronics | 3.1 | ||||||
Miscellaneous Manufacturing | 2.7 | ||||||
Commercial Services | 2.4 | ||||||
Metal Fabricate/Hardware | 2.3 | ||||||
Food | 2.2 | ||||||
Auto Manufacturers | 2.1 | ||||||
Computers | 1.7 | ||||||
Engineering & Construction | 0.5 | ||||||
Money Market Fund | 29.3 | ||||||
Liabilities in excess of other assets | (29.3 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Small-Cap Growth | 65.4 | ||||||
Mid-Cap Growth | 16.1 | ||||||
Small-Cap Value | 7.2 | ||||||
Large-Cap Value | 6.5 | ||||||
Mid-Cap Value | 4.8 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
Universal Display Corp. | 2.9 | ||||||
Zoltek Cos., Inc. | 2.6 | ||||||
Calpine Corp. | 2.5 | ||||||
Gevo, Inc. | 2.4 | ||||||
Quanta Services, Inc. | 2.4 | ||||||
American Superconductor Corp. | 2.4 | ||||||
Trina Solar Ltd. ADR | 2.4 | ||||||
Cree, Inc. | 2.3 | ||||||
Yingli Green Energy Holding Co. Ltd. ADR | 2.3 | ||||||
Aixtron SE ADR | 2.3 | ||||||
Total | 24.5 |
26
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, 2012 | ||||||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
WilderHill Clean Energy Index | (50.71 | )% | (17.15 | )% | (23.84 | )% | (15.04 | )% | (68.86 | )% | |||||||||||||
NASDAQ Composite Index | 6.01 | % | 21.05 | % | 3.82 | % | 5.67 | % | 48.48 | % | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 4.25 | % | 34.71 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | (49.78 | )% | (16.82 | )% | (23.07 | )% | (14.21 | )% | (66.62 | )% | |||||||||||||
Share Price Return | (49.68 | )% | (16.69 | )% | (23.09 | )% | (14.20 | )% | (66.59 | )% |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.75%. The Financial Highlights section of this Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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 2,529 and 500 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from the closest month-end to the Fund's inception date.
†† Average Annualized.
27
Manager's Analysis
PowerShares WilderHill Progressive Energy Portfolio (ticker: PUW)
The PowerShares WilderHill Progressive Energy Portfolio (the "Fund") seeks investment results that generally correspond (before fees and expenses) to the price and yield of the WilderHill Progressive Energy Index (the "Index"). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index. The Index is composed of companies in transitional energy technologies significant in improving the use of fossil fuels and nuclear power. The Index is composed of companies focused on the following areas: alternative energy, better efficiency, emission reduction, new energy activity, utilities, and energy conservation and storage.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned (14.93)%. On a Net Asset Value ("NAV") basis, the Fund returned (14.84)%. During the same reporting period, the Index returned (15.06)%, while the NASDAQ Composite Index returned 6.01% and the S&P 500® Index returned 4.73%. The Fund benefited from positive performance of securities of companies in materials and consumer staples sectors. The Fund was hurt most by exposure to industrials, energy, and information technology sectors.
At the single stock level, the Fund benefited most from exposure to Chart Industries, Inc. (portfolio average weight of 1.82%), Westport Innovations, Inc. (portfolio average weight of 2.25%), and Companhia Energetica de Minas Gerais American Depositary Receipt ("ADR"), (portfolio average weight of 2.33%). The leading detractors to the Fund were Avalon Rare Metals, Inc. (portfolio average weight of 0.69%), Exide Technologies (portfolio average weight of 0.96%), and Chesapeake Energy Corp. (portfolio average weight of 2.11%).
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Miscellaneous Manufacturing | 13.3 | ||||||
Electrical Components & Equipment | 12.6 | ||||||
Electronics | 8.4 | ||||||
Chemicals | 6.6 | ||||||
Environmental Control | 6.5 | ||||||
Oil & Gas | 6.1 | ||||||
Engineering & Construction | 6.0 | ||||||
Electric | 5.9 | ||||||
Machinery-Diversified | 5.9 | ||||||
Mining | 5.7 | ||||||
Auto Parts & Equipment | 5.7 | ||||||
Building Materials | 2.6 | ||||||
Auto Manufacturers | 2.3 | ||||||
Hand/Machine Tools | 2.3 | ||||||
Agriculture | 2.2 | ||||||
Semiconductors | 2.2 | ||||||
Telecommunications | 2.1 | ||||||
Transportation | 1.9 | ||||||
Energy-Alternate Sources | 1.7 | ||||||
Money Market Fund | 0.3 | ||||||
Liabilities in excess of other assets | (0.3 | ) |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
Denison Mines Corp. | 2.5 | ||||||
Range Resources Corp. | 2.4 | ||||||
Hexcel Corp. | 2.4 | ||||||
A.O. Smith Corp. | 2.4 | ||||||
Methanex Corp. | 2.3 | ||||||
Tata Motors Ltd. ADR | 2.3 | ||||||
Rentech, Inc. | 2.3 | ||||||
Rockwood Holdings, Inc. | 2.3 | ||||||
General Cable Corp. | 2.3 | ||||||
Emerson Electric Co. | 2.3 | ||||||
Total | 23.5 |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Small-Cap Value | 21.5 | ||||||
Mid-Cap Growth | 21.0 | ||||||
Small-Cap Growth | 18.4 | ||||||
Large-Cap Growth | 15.0 | ||||||
Mid-Cap Value | 14.1 | ||||||
Large-Cap Value | 10.0 |
28
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, 2012 | ||||||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Wilderhill Progressive Energy Index | (15.06 | )% | 14.78 | % | (1.73 | )% | 0.91 | % | 5.10 | % | |||||||||||||
NASDAQ Composite Index | 6.01 | % | 21.05 | % | 3.82 | % | 4.70 | % | 28.72 | % | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 2.44 | % | 14.16 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | (14.84 | )% | 15.04 | % | (1.41 | )% | 1.26 | % | 7.12 | % | |||||||||||||
Share Price Return | (14.93 | )% | 15.02 | % | (1.43 | )% | 1.26 | % | 7.12 | % |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.86%. The Financial Highlights section of this Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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 2,529 and 500 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from the closest month-end to the Fund's inception date.
†† Average Annualized.
29
Frequency Distribution of Discounts & Premiums
Since Inception through April 30, 2012
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 | 1,640 | 570 | 16 | 2 | 1 | — | 3 | ||||||||||||||||||||||||||||||
PZD | PowerShares CleantechTM Portfolio | 10/24/06 | 1,390 | 285 | 99 | 94 | 24 | 4 | 3 | ||||||||||||||||||||||||||||||
PDP | PowerShares DWA Technical LeadersTM Portfolio | 3/1/07 | 1,304 | 556 | 15 | 8 | — | — | — | ||||||||||||||||||||||||||||||
PSP | PowerShares Global Listed Private Equity Portfolio | 10/24/06 | 1,390 | 383 | 181 | 217 | 41 | 11 | 8 | ||||||||||||||||||||||||||||||
PGJ | PowerShares Golden Dragon China Portfolio | 12/9/04 | 1,862 | 646 | 141 | 23 | 2 | — | — | ||||||||||||||||||||||||||||||
PXN | PowerShares Lux Nanotech Portfolio | 10/26/05 | 1,640 | 488 | 87 | 44 | 10 | 1 | 1 | ||||||||||||||||||||||||||||||
PYH | PowerShares Morningstar StockInvestor Core Portfolio | 12/1/06 | 1,363 | 462 | 13 | 6 | 3 | — | 1 | ||||||||||||||||||||||||||||||
PBP | PowerShares S&P 500 BuyWrite Portfolio | 12/20/07 | 1,098 | 430 | 136 | 85 | 20 | 10 | 14 | ||||||||||||||||||||||||||||||
SPHQ | PowerShares S&P 500® High Quality Portfolio | 12/6/05 | 1,612 | 640 | 39 | 5 | 2 | 2 | 1 | ||||||||||||||||||||||||||||||
PHO | PowerShares Water Resources Portfolio | 12/6/05 | 1,612 | 565 | 100 | 20 | 1 | — | 1 | ||||||||||||||||||||||||||||||
PBW | PowerShares WilderHill Clean Energy Portfolio | 3/3/05 | 1,805 | 657 | 132 | 28 | 7 | — | — | ||||||||||||||||||||||||||||||
PUW | PowerShares WilderHill Progressive Energy Portfolio | 10/24/06 | 1,390 | 441 | 23 | 6 | — | — | — |
30
Closing Price Below NAV (bps) | |||||||||||||||||||||||||||
Ticker | 0-24 | -25-49 | -50-99 | -100-149 | -150-199 | -200+ | |||||||||||||||||||||
PPA | 1,022 | 16 | 9 | — | — | 1 | |||||||||||||||||||||
PZD | 506 | 219 | 135 | 17 | 1 | 3 | |||||||||||||||||||||
PDP | 692 | 24 | 9 | — | — | — | |||||||||||||||||||||
PSP | 372 | 74 | 75 | 28 | — | — | |||||||||||||||||||||
PGJ | 855 | 166 | 24 | 4 | — | 1 | |||||||||||||||||||||
PXN | 850 | 132 | 21 | 3 | 1 | 2 | |||||||||||||||||||||
PYH | 857 | 17 | 3 | — | — | 1 | |||||||||||||||||||||
PBP | 372 | 19 | 9 | — | 1 | 2 | |||||||||||||||||||||
SPHQ | 903 | 14 | 3 | — | 1 | 2 | |||||||||||||||||||||
PHO | 867 | 44 | 13 | 1 | — | — | |||||||||||||||||||||
PBW | 834 | 126 | 16 | 2 | 1 | 2 | |||||||||||||||||||||
PUW | 891 | 25 | 4 | — | — | — |
31
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, 2012.
In pursuing their investment objectives, PowerShares Global Listed Private Equity Portfolio and PowerShares Lux Nanotech Portfolio (the "Portfolios") may invest a portion of their assets in investment companies. Each Portfolio indirectly bears a pro rata share of the fees and expenses of the investment companies in which each Portfolio invests. The effect of such expenses are included in each Portfolio's total return.
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, 2011 | Ending Account Value April 30, 2012 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period (1) | ||||||||||||||||
PowerShares Aerospace & Defense Portfolio (PPA) Actual | $ | 1,000.00 | $ | 1,102.59 | 0.66 | % | $ | 3.45 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.58 | 0.66 | % | $ | 3.32 | |||||||||||
PowerShares CleantechTM Portfolio (PZD) Actual | $ | 1,000.00 | $ | 1,005.16 | 0.67 | % | $ | 3.34 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.53 | 0.67 | % | $ | 3.37 |
32
Fees and Expenses (Continued)
Beginning Account Value November 1, 2011 | Ending Account Value April 30, 2012 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period (1) | ||||||||||||||||
PowerShares DWA Technical LeadersTM Portfolio (PDP) Actual | $ | 1,000.00 | $ | 1,158.53 | 0.64 | % | $ | 3.43 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.68 | 0.64 | % | $ | 3.22 | |||||||||||
PowerShares Global Listed Private Equity Portfolio (PSP) Actual | $ | 1,000.00 | $ | 1,052.51 | 0.71 | % | $ | 3.62 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.33 | 0.71 | % | $ | 3.57 | |||||||||||
PowerShares Golden Dragon China Portfolio (PGJ) Actual | $ | 1,000.00 | $ | 989.33 | 0.68 | % | $ | 3.36 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.48 | 0.68 | % | $ | 3.42 | |||||||||||
PowerShares Lux Nanotech Portfolio (PXN) Actual | $ | 1,000.00 | $ | 996.87 | 0.70 | % | $ | 3.48 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.38 | 0.70 | % | $ | 3.52 | |||||||||||
PowerShares Morningstar StockInvestor Core Portfolio (PYH) Actual | $ | 1,000.00 | $ | 1,119.60 | 0.50 | % | $ | 2.64 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.38 | 0.50 | % | $ | 2.51 | |||||||||||
PowerShares S&P 500 BuyWrite Portfolio (PBP) Actual | $ | 1,000.00 | $ | 1,109.39 | 0.75 | % | $ | 3.93 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.13 | 0.75 | % | $ | 3.77 | |||||||||||
PowerShares S&P 500® High Quality Portfolio (SPHQ) Actual | $ | 1,000.00 | $ | 1,117.40 | 0.50 | % | $ | 2.63 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.38 | 0.50 | % | $ | 2.51 | |||||||||||
PowerShares Water Resources Portfolio (PHO) Actual | $ | 1,000.00 | $ | 1,098.12 | 0.59 | % | $ | 3.08 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.93 | 0.59 | % | $ | 2.97 | |||||||||||
PowerShares WilderHill Clean Energy Portfolio (PBW) Actual | $ | 1,000.00 | $ | 847.40 | 0.70 | % | $ | 3.22 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.38 | 0.70 | % | $ | 3.52 | |||||||||||
PowerShares WilderHill Progressive Energy Portfolio (PUW) Actual | $ | 1,000.00 | $ | 1,096.66 | 0.72 | % | $ | 3.75 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.28 | 0.72 | % | $ | 3.62 |
(1) Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six-month period ended April 30, 2012. Expenses are calculated by multiplying the Fund's annualized expense ratio by the average account value for the period, then multiplying the result by 182/366. Expense ratios for the most recent six-month period may differ from expense ratios based on the annualized data in the Financial Highlights.
33
Schedule of Investments
PowerShares Aerospace & Defense Portfolio (PPA)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks—99.9% | |||||||||||
Aerospace/Defense—58.5% | |||||||||||
13,061 | AAR Corp. | $ | 201,792 | ||||||||
7,176 | Aerovironment, Inc.(a) | 174,520 | |||||||||
10,702 | Alliant Techsystems, Inc. | 570,417 | |||||||||
42,625 | Boeing Co. (The) | 3,273,600 | |||||||||
8,668 | Cubic Corp. | 400,722 | |||||||||
3,423 | Ducommun, Inc. | 40,391 | |||||||||
9,936 | Esterline Technologies Corp.(a) | 680,517 | |||||||||
59,897 | Exelis, Inc. | 690,612 | |||||||||
19,355 | GenCorp, Inc.(a) | 132,969 | |||||||||
35,219 | General Dynamics Corp. | 2,377,283 | |||||||||
20,050 | Goodrich Corp. | 2,515,473 | |||||||||
16,935 | HEICO Corp. | 682,819 | |||||||||
10,530 | Kratos Defense & Security Solutions, Inc.(a) | 58,442 | |||||||||
31,252 | L-3 Communications Holdings, Inc. | 2,298,272 | |||||||||
3,852 | LMI Aerospace, Inc.(a) | 70,453 | |||||||||
31,842 | Lockheed Martin Corp. | 2,882,975 | |||||||||
14,657 | Moog, Inc., Class A(a) | 619,551 | |||||||||
41,032 | Northrop Grumman Corp. | 2,596,505 | |||||||||
19,109 | Orbital Sciences Corp.(a) | 240,009 | |||||||||
47,388 | Raytheon Co. | 2,565,586 | |||||||||
38,047 | Rockwell Collins, Inc. | 2,126,447 | |||||||||
11,899 | Teledyne Technologies, Inc.(a) | 768,913 | |||||||||
16,422 | TransDigm Group, Inc.(a) | 2,071,143 | |||||||||
15,924 | Triumph Group, Inc. | 1,000,346 | |||||||||
38,367 | United Technologies Corp. | 3,132,282 | |||||||||
32,172,039 | |||||||||||
Auto Manufacturers—1.2% | |||||||||||
29,676 | Oshkosh Corp.(a) | 677,503 | |||||||||
Commercial Services—3.9% | |||||||||||
47,178 | Booz Allen Hamilton Holding Corp. | 806,744 | |||||||||
110,574 | SAIC, Inc. | 1,344,580 | |||||||||
2,151,324 | |||||||||||
Computers—3.9% | |||||||||||
8,587 | CACI International, Inc., Class A(a) | 524,923 | |||||||||
50,272 | Computer Sciences Corp. | 1,410,632 | |||||||||
8,383 | Keyw Holding Corp. (The)(a) | 78,800 | |||||||||
10,003 | Mercury Computer Systems, Inc.(a) | 132,040 | |||||||||
4,404 | NCI, Inc., Class A(a) | 21,844 | |||||||||
2,168,239 | |||||||||||
Electronics—9.1% | |||||||||||
2,890 | American Science & Engineering, Inc. | 188,746 | |||||||||
49,943 | FLIR Systems, Inc. | 1,121,720 | |||||||||
52,018 | Honeywell International, Inc. | 3,155,412 | |||||||||
6,411 | OSI Systems, Inc.(a) | 428,639 | |||||||||
21,154 | Taser International, Inc.(a) | 97,308 | |||||||||
4,991,825 | |||||||||||
Engineering & Construction—1.9% | |||||||||||
24,740 | URS Corp. | 1,022,009 |
Number of Shares | Value | ||||||||||
Common Stocks (Continued) | |||||||||||
Metal Fabricate/Hardware—4.6% | |||||||||||
14,334 | Precision Castparts Corp. | $ | 2,528,088 | ||||||||
Miscellaneous Manufacturing—5.9% | |||||||||||
7,842 | Ceradyne, Inc. | 198,559 | |||||||||
32,219 | Hexcel Corp.(a) | 882,156 | |||||||||
80,257 | Textron, Inc. | 2,138,047 | |||||||||
3,218,762 | |||||||||||
Packaging & Containers—3.8% | |||||||||||
50,608 | Ball Corp. | 2,113,390 | |||||||||
Shipbuilding—1.1% | |||||||||||
15,823 | Huntington Ingalls Industries, Inc.(a) | 624,217 | |||||||||
Software—0.7% | |||||||||||
11,959 | ManTech International Corp., Class A | 375,752 | |||||||||
Telecommunications—5.3% | |||||||||||
6,164 | Comtech Telecommunications Corp. | 190,591 | |||||||||
15,015 | DigitalGlobe, Inc.(a) | 184,234 | |||||||||
7,211 | GeoEye, Inc.(a) | 165,276 | |||||||||
36,914 | Harris Corp. | 1,681,064 | |||||||||
13,888 | ViaSat, Inc.(a) | 670,790 | |||||||||
2,891,955 | |||||||||||
Total Common Stocks (Cost $63,367,966) | 54,935,103 | ||||||||||
Money Market Fund—0.3% | |||||||||||
146,036 | Goldman Sachs Financial Square Prime Obligations - Institutional Share Class (Cost $146,036) | 146,036 | |||||||||
Total Investments (Cost $63,514,002)—100.2% | 55,081,139 | ||||||||||
Liabilities in excess of other assets—(0.2)% | (114,603 | ) | |||||||||
Net Assets—100.0% | $ | 54,966,536 |
Notes to Schedule of Investments:
(a) Non-income producing security.
See Notes to Financial Statements.
34
Schedule of Investments
PowerShares CleantechTM Portfolio (PZD)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.0% | |||||||||||
Auto Parts & Equipment—7.0% | |||||||||||
34,015 | BorgWarner, Inc.(a)(b) | $ | 2,688,546 | ||||||||
26,807 | Fuel Systems Solutions, Inc.(b) | 628,624 | |||||||||
97,309 | Johnson Controls, Inc. | 3,110,969 | |||||||||
17,710 | Westport Innovations, Inc. (Canada)(a)(b) | 555,706 | |||||||||
6,983,845 | |||||||||||
Biotechnology—2.6% | |||||||||||
100,623 | Novozymes A/S, Class B (Denmark) | 2,638,858 | |||||||||
Building Materials—2.0% | |||||||||||
145,983 | Kingspan Group PLC (Ireland) | 1,522,540 | |||||||||
26,253 | WaterFurnace Renewable Energy, Inc. (Canada) | 479,647 | |||||||||
2,002,187 | |||||||||||
Chemicals—2.6% | |||||||||||
892 | Gurit Holding AG (Switzerland) | 516,931 | |||||||||
46,105 | SGL Carbon SE (Germany)(a)(b) | 2,106,488 | |||||||||
2,623,419 | |||||||||||
Commercial Services—3.2% | |||||||||||
1,648 | SGS SA (Switzerland) | 3,182,883 | |||||||||
Electric—3.4% | |||||||||||
52,405 | Ameresco, Inc., Class A(b) | 638,817 | |||||||||
14,358,608 | Energy Development Corp. (Philippines) | 2,006,532 | |||||||||
37,937 | Ormat Technologies, Inc.(a) | 750,015 | |||||||||
3,395,364 | |||||||||||
Electrical Components & Equipment—9.8% | |||||||||||
59,057 | Advanced Energy Industries, Inc.(b) | 705,140 | |||||||||
1,383,945 | China High Speed Transmission Equipment Group Co. Ltd. (China) | 670,766 | |||||||||
44,482 | EnerSys(b) | 1,554,646 | |||||||||
267,257 | Gamesa Corp. Tecnologica SA (Spain) | 725,850 | |||||||||
32,898 | Saft Groupe SA (France) | 907,418 | |||||||||
46,706 | Schneider Electric SA (France) | 2,868,960 | |||||||||
21,018 | SMA Solar Technology AG (Germany) | 880,451 | |||||||||
168,936 | Vestas Wind Systems A/S (Denmark)(a)(b) | 1,491,120 | |||||||||
9,804,351 | |||||||||||
Electronics—10.1% | |||||||||||
21,258 | Badger Meter, Inc. | 785,270 | |||||||||
69,033 | Elster Group SE ADR (Germany)(b) | 1,029,972 | |||||||||
27,961 | ESCO Technologies, Inc. | 961,858 | |||||||||
42,296 | Horiba Ltd. (Japan) | 1,494,358 | |||||||||
34,576 | Itron, Inc.(b) | 1,410,701 | |||||||||
47,266 | Trimble Navigation Ltd.(b) | 2,558,981 | |||||||||
46,551 | Woodward, Inc. | 1,936,056 | |||||||||
10,177,196 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
Energy-Alternate Sources—3.7% | |||||||||||
2,061,336 | China Longyuan Power Group Corp., H-Shares (China) | $ | 1,628,821 | ||||||||
7,859,909 | GCL-Poly Energy Holdings Ltd. (Cayman Islands) | 2,036,469 | |||||||||
3,665,290 | |||||||||||
Engineering & Construction—5.7% | |||||||||||
154,889 | ABB Ltd. (Switzerland) | 2,822,524 | |||||||||
48,469 | Aegion Corp.(b) | 884,559 | |||||||||
55,845 | Arcadis NV (Netherlands) | 1,293,119 | |||||||||
32,269 | Mistras Group, Inc.(b) | 757,354 | |||||||||
5,757,556 | |||||||||||
Environmental Control—6.8% | |||||||||||
35,668 | Asahi Holdings, Inc. (Japan) | 703,577 | |||||||||
29,202 | BWT AG (Austria) | 512,117 | |||||||||
871,930 | Hyflux Ltd. (Singapore) | 1,011,250 | |||||||||
84,018 | Kurita Water Industries Ltd. (Japan) | 2,063,489 | |||||||||
54,939 | Tetra Tech, Inc.(b) | 1,466,871 | |||||||||
138,883 | Tomra Systems ASA (Norway) | 1,081,320 | |||||||||
6,838,624 | |||||||||||
Hand/Machine Tools—1.0% | |||||||||||
63,580 | Meyer Burger Technology AG (Switzerland)(a)(b) | 1,050,735 | |||||||||
Healthcare-Services—1.7% | |||||||||||
14,124 | Eurofins Scientific (France) | 1,668,610 | |||||||||
Machinery-Diversified—7.3% | |||||||||||
28,542 | Kadant, Inc.(b) | 738,381 | |||||||||
15,795 | Lindsay Corp. | 1,054,948 | |||||||||
29,043 | Roper Industries, Inc. | 2,959,482 | |||||||||
93,603 | Xylem, Inc. | 2,609,652 | |||||||||
7,362,463 | |||||||||||
Mining—0.4% | |||||||||||
132,690 | 5N Plus, Inc., Class Common Subscription Recei (Canada)(a)(b) | 416,356 | |||||||||
Miscellaneous Manufacturing—16.7% | |||||||||||
144,672 | Alfa Laval AB (Sweden) | 2,883,391 | |||||||||
39,341 | CLARCOR, Inc. | 1,889,155 | |||||||||
72,494 | Donaldson Co., Inc. | 2,512,642 | |||||||||
79,342 | Hexcel Corp.(b) | 2,172,384 | |||||||||
48,603 | Pall Corp. | 2,897,225 | |||||||||
42,092 | Polypore International, Inc.(a)(b) | 1,572,136 | |||||||||
30,909 | Siemens AG (Germany) | 2,862,445 | |||||||||
16,789,378 |
See Notes to Financial Statements.
35
Schedule of Investments (Continued)
PowerShares CleantechTM Portfolio (PZD)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
Semiconductors—5.9% | |||||||||||
69,652 | Cree, Inc.(a)(b) | $ | 2,152,247 | ||||||||
67,488 | First Solar, Inc.(a)(b) | 1,241,779 | |||||||||
131,110 | GT Advanced Technologies, Inc.(a)(b) | 853,526 | |||||||||
30,811 | Power Integrations, Inc. | 1,167,121 | |||||||||
47,897 | Rubicon Technology, Inc.(a)(b) | 452,627 | |||||||||
5,867,300 | |||||||||||
Software—5.4% | |||||||||||
39,618 | ANSYS, Inc.(b) | 2,657,179 | |||||||||
69,327 | Autodesk, Inc.(b) | 2,729,404 | |||||||||
5,386,583 | |||||||||||
Telecommunications—4.7% | |||||||||||
222,763 | Corning, Inc. | 3,196,649 | |||||||||
110,621 | Polycom, Inc.(b) | 1,467,941 | |||||||||
4,664,590 | |||||||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $103,278,096)—100.0% | 100,275,588 | ||||||||||
Investments Purchased with Cash Collateral from Securities on Loan | |||||||||||
Money Market Fund—9.8% | |||||||||||
9,864,833 | Invesco Liquid Assets Portfolio - Institutional Class (Cost $9,864,833)(c)(d) | 9,864,833 | |||||||||
Total Investments (Cost $113,142,929)—109.8% | 110,140,421 | ||||||||||
Liabilities in excess of other assets—(9.8)% | (9,834,942 | ) | |||||||||
Net Assets—100.0% | $ | 100,305,479 |
Investment Abbreviations:
ADR—American Depositary Receipt
Notes to Schedule of Investments:
(a) All or a portion of this security was out on loan at April 30, 2012.
(b) Non-income producing security.
(c) The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower's return of the securities loaned. See Note 2J.
(d) The security and the Fund are advised by wholly owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.
See Notes to Financial Statements.
36
Schedule of Investments
PowerShares DWA Technical LeadersTM Portfolio (PDP)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.0% | |||||||||||
Consumer Discretionary—32.6% | |||||||||||
7,662 | AutoZone, Inc.(a) | $ | 3,035,378 | ||||||||
102,139 | Brinker International, Inc. | 3,214,314 | |||||||||
98,464 | CBS Corp., Class B | 3,283,774 | |||||||||
231,801 | Chico's FAS, Inc. | 3,560,463 | |||||||||
14,128 | Chipotle Mexican Grill, Inc.(a) | 5,851,111 | |||||||||
135,927 | Dillard's, Inc., Class A | 8,775,447 | |||||||||
47,110 | Dollar Tree, Inc.(a) | 4,789,203 | |||||||||
56,770 | DSW, Inc., Class A | 3,193,880 | |||||||||
226,153 | Las Vegas Sands Corp. | 12,549,230 | |||||||||
188,539 | Liberty Interactive Corp., Class A(a) | 3,552,075 | |||||||||
162,896 | Liberty Media Corp. - Liberty Capital, Class A(a) | 14,243,626 | |||||||||
68,904 | Macy's, Inc. | 2,826,442 | |||||||||
31,344 | McDonald's Corp. | 3,054,473 | |||||||||
51,069 | NIKE, Inc., Class B | 5,713,089 | |||||||||
49,234 | Nordstrom, Inc. | 2,750,211 | |||||||||
143,956 | O'Reilly Automotive, Inc.(a) | 15,181,600 | |||||||||
22,065 | Panera Bread Co., Class A(a) | 3,484,505 | |||||||||
40,856 | Polaris Industries, Inc. | 3,245,601 | |||||||||
23,252 | Priceline.com, Inc.(a) | 17,690,587 | |||||||||
53,474 | Ralph Lauren Corp. | 9,211,966 | |||||||||
63,203 | Ross Stores, Inc. | 3,892,673 | |||||||||
134,620 | Sally Beauty Holdings, Inc.(a) | 3,580,892 | |||||||||
66,784 | Signet Jewelers Ltd. (United Kingdom) | 3,257,056 | |||||||||
1,380,052 | Sirius XM Radio, Inc.(a) | 3,118,917 | |||||||||
49,250 | Starbucks Corp. | 2,825,965 | |||||||||
42,655 | Tractor Supply Co. | 4,197,679 | |||||||||
208,941 | TRW Automotive Holdings Corp.(a) | 9,550,693 | |||||||||
78,116 | Ulta Salon, Cosmetics & Fragrance, Inc. | 6,888,269 | |||||||||
32,749 | VF Corp. | 4,979,485 | |||||||||
123,315 | Wyndham Worldwide Corp. | 6,207,677 | |||||||||
119,703 | Yum! Brands, Inc. | 8,705,999 | |||||||||
186,412,280 | |||||||||||
Consumer Staples—5.8% | |||||||||||
161,168 | Altria Group, Inc. | 5,191,221 | |||||||||
37,701 | Brown-Forman Corp., Class B | 3,255,481 | |||||||||
145,684 | Church & Dwight Co., Inc. | 7,400,747 | |||||||||
57,786 | Herbalife Ltd. (Cayman Islands) | 4,063,512 | |||||||||
98,019 | Hormel Foods Corp. | 2,848,432 | |||||||||
37,884 | J.M. Smucker Co. (The) | 3,016,703 | |||||||||
55,434 | Monster Beverage Corp.(a) | 3,600,993 | |||||||||
46,714 | Whole Foods Market, Inc. | 3,880,532 | |||||||||
33,257,621 | |||||||||||
Energy—1.8% | |||||||||||
91,141 | Atwood Oceanics, Inc.(a) | 4,040,280 | |||||||||
32,075 | Continental Resources, Inc.(a) | 2,862,694 | |||||||||
27,211 | Pioneer Natural Resources Co. | 3,151,578 | |||||||||
10,054,552 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
Financials—12.7% | |||||||||||
43,888 | ACE Ltd. | $ | 3,334,171 | ||||||||
267,332 | American Tower Corp. REIT | 17,531,633 | |||||||||
181,613 | Arch Capital Group Ltd.(a) | 7,133,759 | |||||||||
158,371 | CBRE Group, Inc., Class A(a) | 2,978,958 | |||||||||
45,382 | Digital Realty Trust, Inc. REIT | 3,407,734 | |||||||||
960,995 | General Growth Properties, Inc. REIT | 17,105,711 | |||||||||
69,849 | Macerich Co. (The) REIT | 4,300,603 | |||||||||
82,196 | Rayonier, Inc. REIT | 3,727,589 | |||||||||
61,973 | RenaissanceRe Holdings Ltd. (Bermuda) | 4,837,612 | |||||||||
220,736 | W.R. Berkley Corp. | 8,312,918 | |||||||||
72,670,688 | |||||||||||
Health Care—7.1% | |||||||||||
129,862 | Alexion Pharmaceuticals, Inc.(a) | 11,729,136 | |||||||||
33,019 | Cooper Cos., Inc. (The) | 2,911,285 | |||||||||
105,449 | Henry Schein, Inc.(a) | 8,092,156 | |||||||||
47,380 | Regeneron Pharmaceuticals, Inc.(a) | 6,408,619 | |||||||||
123,608 | SXC Health Solutions Corp. (Canada)(a) | 11,196,413 | |||||||||
40,337,609 | |||||||||||
Industrials—15.2% | |||||||||||
184,013 | AMETEK, Inc. | 9,261,374 | |||||||||
64,432 | BE Aerospace, Inc.(a) | 3,030,237 | |||||||||
73,430 | Chicago Bridge & Iron Co. NV (Netherlands) | 3,261,761 | |||||||||
70,740 | Danaher Corp. | 3,835,523 | |||||||||
141,951 | Donaldson Co., Inc. | 4,920,022 | |||||||||
38,329 | Dun & Bradstreet Corp. (The) | 2,981,230 | |||||||||
59,663 | Fastenal Co. | 2,793,422 | |||||||||
237,446 | J.B. Hunt Transport Services, Inc. | 13,137,887 | |||||||||
83,932 | Kirby Corp.(a) | 5,570,567 | |||||||||
71,596 | Nordson Corp. | 3,859,024 | |||||||||
49,287 | Precision Castparts Corp. | 8,692,748 | |||||||||
68,459 | Roper Industries, Inc. | 6,975,972 | |||||||||
34,587 | Stanley Black & Decker, Inc. | 2,530,385 | |||||||||
40,734 | Towers Watson & Co., Class A | 2,664,004 | |||||||||
26,552 | TransDigm Group, Inc.(a) | 3,348,738 | |||||||||
39,680 | Union Pacific Corp. | 4,461,619 | |||||||||
26,427 | W.W. Grainger, Inc. | 5,492,059 | |||||||||
86,816,572 | |||||||||||
Information Technology—8.8% | |||||||||||
112,772 | ANSYS, Inc.(a) | 7,563,618 | |||||||||
28,387 | Apple, Inc.(a) | 16,584,821 | |||||||||
67,218 | Gartner, Inc.(a) | 2,944,148 | |||||||||
13,185 | MasterCard, Inc., Class A | 5,963,180 | |||||||||
90,642 | Rackspace Hosting, Inc.(a) | 5,265,394 | |||||||||
116,178 | Skyworks Solutions, Inc.(a) | 3,153,071 | |||||||||
124,674 | VeriFone Systems, Inc.(a) | 5,939,469 | |||||||||
24,143 | VMware, Inc., Class A(a) | 2,697,256 | |||||||||
50,110,957 |
See Notes to Financial Statements.
37
Schedule of Investments (Continued)
PowerShares DWA Technical LeadersTM Portfolio (PDP)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
Materials—14.6% | |||||||||||
67,390 | AptarGroup, Inc. | $ | 3,673,429 | ||||||||
63,648 | Ashland, Inc. | 4,192,494 | |||||||||
189,834 | Ball Corp. | 7,927,468 | |||||||||
47,327 | Domtar Corp. | 4,140,166 | |||||||||
45,545 | Ecolab, Inc. | 2,900,761 | |||||||||
52,084 | FMC Corp. | 5,752,678 | |||||||||
82,428 | International Paper Co. | 2,745,677 | |||||||||
146,023 | Kronos Worldwide, Inc. | 3,466,586 | |||||||||
39,950 | Praxair, Inc. | 4,622,215 | |||||||||
56,360 | Rock-Tenn Co., Class A | 3,512,919 | |||||||||
80,807 | Rockwood Holdings, Inc.(a) | 4,471,859 | |||||||||
38,185 | Sherwin-Williams Co. (The) | 4,592,892 | |||||||||
63,149 | Sigma-Aldrich Corp. | 4,477,264 | |||||||||
373,351 | Silgan Holdings, Inc. | 16,378,908 | |||||||||
68,120 | Valspar Corp. (The) | 3,484,338 | |||||||||
117,122 | W.R. Grace & Co.(a) | 6,981,642 | |||||||||
83,321,296 | |||||||||||
Utilities—1.4% | |||||||||||
59,990 | ONEOK, Inc. | 5,152,541 | |||||||||
75,996 | Wisconsin Energy Corp. | 2,799,693 | |||||||||
7,952,234 | |||||||||||
Total Common Stocks and Other Equity Interests (Cost $475,807,489) | 570,933,809 | ||||||||||
Money Market Fund—0.1% | |||||||||||
474,657 | Goldman Sachs Financial Square Prime Obligations - Institutional Share Class (Cost $474,657) | 474,657 | |||||||||
Total Investments (Cost $476,282,146)—100.1% | 571,408,466 | ||||||||||
Liabilities in excess of other assets—(0.1)% | (330,878 | ) | |||||||||
Net Assets—100.0% | $ | 571,077,588 |
Investment Abbreviations:
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
(a) Non-income producing security.
See Notes to Financial Statements.
38
Schedule of Investments
PowerShares Global Listed Private Equity Portfolio (PSP)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests(a)—91.1% | |||||||||||
Diversified Financial Services—8.1% | |||||||||||
1,966,533 | Brait SE (South Africa)(b) | $ | 6,178,600 | ||||||||
1,676,777 | Intermediate Capital Group PLC (United Kingdom) | 6,992,244 | |||||||||
57,284 | Partners Group Holding AG (Switzerland) | 10,899,517 | |||||||||
24,070,361 | |||||||||||
Equity Fund—1.6% | |||||||||||
305,000 | Financial Select Sector SPDR Fund | 4,703,100 | |||||||||
Food—1.8% | |||||||||||
360,308 | Hakon Invest AB (Sweden) | 5,246,515 | |||||||||
Holding Companies-Diversified—18.7% | |||||||||||
109,683 | Ackermans & van Haaren NV (Belgium) | 9,401,267 | |||||||||
207,084 | Compass Diversified Holdings | 3,039,993 | |||||||||
109,208 | Hal Trust (Netherlands) | 13,362,927 | |||||||||
286,520 | Investment AB Latour, Class B (Sweden) | 5,774,422 | |||||||||
492,945 | Leucadia National Corp. | 12,254,613 | |||||||||
101,787 | Schouw & Co. (Denmark) | 2,308,999 | |||||||||
124,052 | Wendel (France) | 9,279,961 | |||||||||
55,422,182 | |||||||||||
Internet—1.0% | |||||||||||
169,585 | ICG Group, Inc.(b) | 1,607,666 | |||||||||
88,415 | Safeguard Scientifics, Inc.(b) | 1,446,469 | |||||||||
3,054,135 | |||||||||||
Investment Companies—28.3% | |||||||||||
320,165 | AP Alternative Assets LP (United Kingdom) | 3,217,658 | |||||||||
751,930 | Apollo Investment Corp. | 5,451,493 | |||||||||
3,030,743 | ARC Capital Holdings Ltd. (Cayman Islands)(b) | 2,151,828 | |||||||||
703,226 | Ares Capital Corp. | 11,279,745 | |||||||||
576,479 | Better Capital PCC Ltd. (Guernsey)(b) | 1,413,535 | |||||||||
304,615 | BlackRock Kelso Capital Corp. | 2,939,535 | |||||||||
112,830 | Candover Investments PLC (United Kingdom)(b) | 760,359 | |||||||||
15,964 | Capital Southwest Corp. | 1,528,074 | |||||||||
1,062,000 | China Merchants China Direct Investments Ltd. (Hong Kong) | 1,681,075 | |||||||||
1,271,674 | DeA Capital SpA (Italy)(b) | 2,373,204 | |||||||||
167,369 | Electra Private Equity PLC (United Kingdom)(b) | 4,527,894 | |||||||||
315,910 | Fifth Street Finance Corp. | 3,102,236 | |||||||||
103,268 | Golub Capital BDC, Inc. | 1,534,563 | |||||||||
148,069 | HgCapital Trust PLC (United Kingdom) | 2,286,604 | |||||||||
426,120 | Hosken Consolidated Investments Ltd. (South Africa) | 4,549,774 | |||||||||
132,369 | JZ Capital Partners Ltd. (Guernsey) | 767,363 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
124,535 | Main Street Capital Corp. | $ | 3,189,341 | ||||||||
355,038 | MCG Capital Corp. | 1,487,609 | |||||||||
116,122 | MVC Capital, Inc. | 1,532,810 | |||||||||
217,764 | PennantPark Investment Corp. | 2,275,634 | |||||||||
278,968 | Princess Private Equity Holding Ltd. (Guernsey) | 2,244,906 | |||||||||
490,921 | Prospect Capital Corp. | 5,360,857 | |||||||||
1,073,423 | Ratos AB, Class B (Sweden) | 12,564,925 | |||||||||
245,810 | RHJ International (Belgium)(b) | 1,288,353 | |||||||||
139,460 | Solar Capital Ltd. | 2,895,190 | |||||||||
157,651 | TICC Capital Corp. | 1,451,966 | |||||||||
83,856,531 | |||||||||||
Miscellaneous Manufacturing—2.3% | |||||||||||
11,387,000 | Fosun International (China) | 6,810,697 | |||||||||
Private Equity—28.5% | |||||||||||
3,427,462 | 3i Group PLC (United Kingdom) | 10,636,030 | |||||||||
234,313 | Altamir Amboise (France) | 2,099,545 | |||||||||
1,150,949 | American Capital Ltd.(b) | 11,428,923 | |||||||||
636,634 | Apollo Global Management LLC, Class A | 8,174,380 | |||||||||
34,713 | Aurelius AG (Germany) | 1,527,651 | |||||||||
284,213 | Bure Equity AB (Sweden) | 786,269 | |||||||||
97,473 | Deutsche Beteiligungs AG (Germany) | 2,163,504 | |||||||||
216,734 | Eurazeo (France) | 11,105,716 | |||||||||
91,364 | Gimv NV (Belgium) | 4,476,636 | |||||||||
815,998 | GP Investments Ltd. BDR (Bermuda)(b) | 1,955,673 | |||||||||
210,281 | Hercules Technology Growth Capital, Inc. | 2,399,306 | |||||||||
779,446 | IP Group PLC (United Kingdom)(b) | 1,841,600 | |||||||||
214,260 | JAFCO Co. Ltd. (Japan) | 5,114,654 | |||||||||
369,302 | Onex Corp. (Canada) | 14,664,424 | |||||||||
15,163 | Paris Orleans et Cie SA (France) | 339,366 | |||||||||
1,342,578 | SVG Capital PLC (United Kingdom)(b) | 6,025,926 | |||||||||
84,739,603 | |||||||||||
Water—0.8% | |||||||||||
98,639 | PICO Holdings, Inc.(b) | 2,368,322 | |||||||||
Total Common Stocks and Other Equity Interests (Cost $272,493,150) | 270,271,446 |
See Notes to Financial Statements.
39
Schedule of Investments (Continued)
PowerShares Global Listed Private Equity Portfolio (PSP)
April 30, 2012
Number of Shares | Value | ||||||||||
Money Market Funds—9.6% | |||||||||||
2,110,000 | Invesco Liquid Assets Portfolio - Institutional Class (Cost $2,110,000)(c)(d) | $ | 2,110,000 | ||||||||
26,355,617 | Goldman Sachs Financial Square Prime Obligations - Institutional Share Class (Cost $26,355,617) | 26,355,617 | |||||||||
Total Money Market Funds (Cost $28,465,617) | 28,465,617 | ||||||||||
Total Investments (Cost $300,958,767)—100.7% | 298,737,063 | ||||||||||
Liabilities in excess of other assets—(0.7)% | (1,993,270 | ) | |||||||||
Net Assets—100.0% | $ | 296,743,793 |
Investment Abbreviations:
BDR—Brazilian Depositary Receipt
SPDR—Standard & Poor's Depositary Receipt
Notes to Schedule of Investments:
(a) Except as otherwise noted, a portion of all securities in the portfolio are subject to swap agreements. See Note 2I and Note 3.
(b) Non-income producing security.
(c) The security and the Fund are advised by wholly owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.
(d) All or a portion of the value was pledged as collateral for swap agreements. See Note 2I and Note 3.
This Fund has holdings greater than 10% of net assets in the following countries:
United Kingdom 12.2%
See Notes to Financial Statements.
40
Schedule of Investments
PowerShares Golden Dragon China Portfolio (PGJ)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.0% | |||||||||||
Bermuda—0.4% | |||||||||||
52,669 | China Yuchai International Ltd. | $ | 746,320 | ||||||||
47,428 | Global Sources Ltd.(a) | 292,156 | |||||||||
1,038,476 | |||||||||||
British Virgin Islands—0.8% | |||||||||||
61,546 | Camelot Information Systems, Inc. ADR(a) | 180,945 | |||||||||
25,051 | China Ceramics Co. Ltd.(a)(b) | 86,426 | |||||||||
83,494 | China Gerui Advanced Materials Group Ltd.(a)(b) | 237,958 | |||||||||
100,949 | China Metro-Rural Holdings Ltd.(a) | 101,959 | |||||||||
72,288 | China Zenix Auto International Ltd. ADR | 268,189 | |||||||||
78,709 | Hollysys Automation Technologies Ltd.(a)(b) | 781,580 | |||||||||
31,958 | Origin Agritech Ltd.(a) | 56,885 | |||||||||
122,425 | Renesola Ltd. ADR(a)(b) | 202,001 | |||||||||
1,915,943 | |||||||||||
Canada—0.7% | |||||||||||
243,034 | Silvercorp Metals, Inc.(b) | 1,684,226 | |||||||||
Cayman Islands—16.0% | |||||||||||
13,183 | 21Vianet Group, Inc. ADR(a) | 173,093 | |||||||||
31,187 | 3SBio, Inc. ADR(a) | 407,926 | |||||||||
70,551 | 7 Days Group Holdings Ltd. ADR(a) | 899,525 | |||||||||
99,924 | Actions Semiconductor Co. Ltd. ADR(a) | 168,872 | |||||||||
51,579 | Ambow Education Holding Ltd. ADR(a)(b) | 364,148 | |||||||||
65,210 | AutoNavi Holdings Ltd. ADR(a) | 769,478 | |||||||||
25,634 | BCD Semiconductor Manufacturing Ltd. ADR(a) | 148,677 | |||||||||
57,740 | Bitauto Holdings Ltd. ADR(a) | 259,253 | |||||||||
82,957 | Bona FILM Group Ltd. ADR(a)(b) | 477,003 | |||||||||
37,106 | Changyou.com Ltd. ADR(a) | 898,707 | |||||||||
27,588 | Charm Communications, Inc. ADR | 274,501 | |||||||||
102,669 | China Cord Blood Corp.(a)(b) | 299,793 | |||||||||
82,331 | China Digital TV Holding Co. Ltd. ADR | 289,805 | |||||||||
44,812 | China Distance Education Holdings Ltd. ADR | 147,431 | |||||||||
72,218 | China Hydroelectric Corp. ADR(a)(b) | 106,883 | |||||||||
33,071 | China Kanghui Holdings, Inc. ADR(a)(b) | 660,428 | |||||||||
85,205 | China Lodging Group Ltd. ADR(a)(b) | 1,084,660 | |||||||||
176,661 | China Ming Yang Wind Power Group Ltd. ADR(a)(b) | 409,854 | |||||||||
143,272 | China Nepstar Chain Drugstore Ltd. ADR | 455,605 | |||||||||
35,054 | China New Borun Corp. ADR(a)(b) | 110,070 | |||||||||
26,702 | China Nuokang Bio-Pharmaceutical, Inc. ADR(a) | 97,729 | |||||||||
73,019 | China Techfaith Wireless Communication Technology Ltd. ADR(a) | 110,259 | |||||||||
70,736 | China Xiniya Fashion Ltd. ADR(a) | 111,763 | |||||||||
33,810 | ChinaCache International Holdings Ltd. ADR(a)(b) | 187,307 | |||||||||
70,895 | CNinsure, Inc. ADR(a)(b) | 423,243 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
47,723 | Cogo Group, Inc.(a) | $ | 117,399 | ||||||||
66,480 | Concord Medical Services Holdings Ltd. ADR | 253,954 | |||||||||
36,322 | Country Style Cooking Restaurant Chain Co. Ltd. ADR(a)(b) | 297,840 | |||||||||
48,794 | Daqo New Energy Corp. ADR(a)(b) | 92,709 | |||||||||
23,015 | E-Commerce China Dangdang, Inc. ADR(a)(b) | 183,890 | |||||||||
122,826 | E-House China Holdings Ltd. ADR | 911,367 | |||||||||
117,751 | Hanwha SolarOne Co. Ltd. ADR(a)(b) | 131,881 | |||||||||
44,263 | hiSoft Technology International Ltd. ADR(a) | 629,420 | |||||||||
78,506 | ISoftStone Holdings Ltd. ADR(a)(b) | 626,478 | |||||||||
43,900 | Jiayuan.Com International Ltd. ADR(a)(b) | 238,816 | |||||||||
33,688 | JinkoSolar Holding Co. Ltd. ADR(a)(b) | 184,610 | |||||||||
70,944 | Ku6 Media Co. Ltd. ADR(a)(b) | 136,212 | |||||||||
64,670 | Le Gaga Holdings Ltd. ADR(a)(b) | 323,997 | |||||||||
41,275 | Lentuo International, Inc. ADR(a)(b) | 116,395 | |||||||||
78,620 | Mecox Lane Ltd. ADR(a)(b) | 90,413 | |||||||||
225,019 | New Oriental Education & Technology Group, Inc. ADR(a) | 6,014,758 | |||||||||
51,882 | Noah Education Holdings Ltd. ADR(a) | 79,379 | |||||||||
78,770 | Noah Holdings Ltd. ADR(b) | 561,630 | |||||||||
13,107 | NQ Mobile, Inc. ADR(a)(b) | 152,434 | |||||||||
14,261 | Perfect World Co. Ltd. ADR | 174,127 | |||||||||
13,241 | Phoenix New Media Ltd. ADR(a) | 83,418 | |||||||||
113,172 | Qihoo 360 Technology Co. Ltd. ADR(a) | 2,780,636 | |||||||||
61,598 | RDA Microelectronics, Inc. ADR(a) | 792,766 | |||||||||
557,131 | Renren, Inc. ADR(a) | 3,398,499 | |||||||||
782,575 | Semiconductor Manufacturing International Corp. ADR(a) | 1,901,657 | |||||||||
197,968 | Shanda Games Ltd. ADR | 1,049,230 | |||||||||
26,261 | ShangPharma Corp. ADR(a) | 219,805 | |||||||||
44,816 | Sky-Mobi Ltd. ADR(a)(b) | 133,552 | |||||||||
108,300 | SouFun Holdings Ltd. ADR(b) | 1,955,898 | |||||||||
68,224 | Spreadtrum Communications, Inc. ADR(b) | 941,491 | |||||||||
53,918 | TAL Education Group ADR(a) | 623,292 | |||||||||
55,564 | Taomee Holdings Ltd. ADR(a)(b) | 307,825 | |||||||||
112,342 | Trina Solar Ltd. ADR(a)(b) | 815,603 | |||||||||
11,532 | Tri-Tech Holding, Inc.(a) | 68,615 | |||||||||
9,954 | Tudou Holdings Ltd. ADR(a)(b) | 358,742 | |||||||||
218,738 | UTStarcom Holdings Corp.(a) | 286,547 | |||||||||
59,811 | VanceInfo Technologies, Inc. ADR(a)(b) | 774,552 | |||||||||
101,586 | WuXi PharmaTech Cayman, Inc. ADR(a) | 1,460,807 | |||||||||
97,626 | Xueda Education Group ADR(a)(b) | 338,762 | |||||||||
8,890 | Youku, Inc. ADR(a)(b) | 213,716 | |||||||||
38,341 | Zuoan Fashion Ltd. ADR(a)(b) | 154,898 | |||||||||
39,314,033 | |||||||||||
China—63.0% | |||||||||||
40,168 | 51job, Inc. ADR(a)(b) | 2,439,001 | |||||||||
41,443 | Acorn International, Inc. ADR(a) | 171,988 | |||||||||
77,332 | Agria Corp. ADR(a) | 88,158 |
See Notes to Financial Statements.
41
Schedule of Investments (Continued)
PowerShares Golden Dragon China Portfolio (PGJ)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
92,236 | Airmedia Group, Inc. ADR(a) | $ | 262,873 | ||||||||
768,259 | Aluminum Corp. of China Ltd. ADR(a)(b) | 9,242,156 | |||||||||
31,211 | ATA, Inc. ADR | 196,629 | |||||||||
94,324 | Baidu, Inc. ADR(a) | 12,516,795 | |||||||||
60,568 | Canadian Solar, Inc.(a)(b) | 208,960 | |||||||||
320,491 | China Eastern Airlines Corp. Ltd. ADR(a)(b) | 5,416,298 | |||||||||
286,777 | China Life Insurance Co. Ltd. ADR(a)(b) | 11,459,609 | |||||||||
101,581 | China Petroleum and Chemical Corp. ADR | 10,713,748 | |||||||||
278,969 | China Southern Airlines Co. Ltd. ADR(a) | 6,195,901 | |||||||||
207,348 | China Telecom Corp. Ltd. ADR(a) | 11,097,265 | |||||||||
25,208 | ChinaEdu Corp. ADR(a) | 176,456 | |||||||||
203,992 | Ctrip.com International Ltd. ADR(a)(b) | 4,420,507 | |||||||||
23,716 | eLong, Inc. ADR(a) | 338,190 | |||||||||
198,378 | Focus Media Holding Ltd. ADR(b) | 4,739,250 | |||||||||
74,015 | General Steel Holdings, Inc.(a)(b) | 82,157 | |||||||||
335,835 | Giant Interactive Group, Inc. ADR(b) | 1,800,076 | |||||||||
201,343 | Guangshen Railway Co. Ltd. ADR(a)(b) | 3,781,222 | |||||||||
64,464 | Home Inns & Hotels Management, Inc. ADR(a)(b) | 1,531,665 | |||||||||
498,937 | Huaneng Power International, Inc. ADR(a) | 11,869,711 | |||||||||
240,225 | JA Solar Holdings Co. Ltd. ADR(a)(b) | 312,292 | |||||||||
22,891 | Jinpan International Ltd. | 197,778 | |||||||||
52,275 | KongZhong Corp. ADR(a) | 303,718 | |||||||||
204,873 | LDK Solar Co. Ltd. ADR(a)(b) | 651,496 | |||||||||
59,561 | Linktone Ltd. ADR(a) | 95,298 | |||||||||
163,504 | Mindray Medical International Ltd. ADR(b) | 5,356,391 | |||||||||
185,555 | NetEase, Inc. ADR(a) | 11,192,678 | |||||||||
98,550 | PetroChina Co. Ltd. ADR | 14,666,211 | |||||||||
72,913 | Qiao Xing Mobile Communication Co. Ltd.(a) | 48,852 | |||||||||
134,090 | Qiao Xing Universal Resources, Inc.(a)(b) | 42,574 | |||||||||
77,691 | Simcere Pharmaceutical Group ADR(a)(b) | 681,350 | |||||||||
93,636 | SINA Corp.(a)(b) | 5,478,642 | |||||||||
102,362 | Sinopec Shanghai Petrochemical Co. Ltd. ADR | 3,534,560 | |||||||||
76,128 | Sinovac Biotech Ltd.(a) | 164,436 | |||||||||
254,623 | Suntech Power Holdings Co. Ltd. ADR(a)(b) | 641,650 | |||||||||
35,231 | The9 Ltd. ADR(a)(b) | 203,635 | |||||||||
48,014 | Vimicro International Corp. ADR(a) | 62,418 | |||||||||
143,251 | VisionChina Media, Inc. ADR(a)(b) | 190,524 | |||||||||
107,609 | Xinyuan Real Estate Co. Ltd. ADR(b) | 361,566 | |||||||||
521,291 | Yanzhou Coal Mining Co. Ltd. ADR(a) | 11,040,943 | |||||||||
222,791 | Yingli Green Energy Holding Co. Ltd. ADR(a)(b) | 810,959 | |||||||||
154,786,586 | |||||||||||
Hong Kong—15.2% | |||||||||||
31,344 | China Finance Online Co. Ltd. ADR(a) | 65,195 | |||||||||
250,417 | China Mobile Ltd. ADR(b) | 13,858,077 | |||||||||
31,841 | China Natural Resources, Inc.(a) | 234,668 | |||||||||
669,657 | China Unicom (Hong Kong) Ltd. ADR(b) | 11,638,639 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
53,631 | CNOOC Ltd. ADR | $ | 11,351,001 | ||||||||
62,994 | Nam Tai Electronics, Inc. | 313,710 | |||||||||
37,461,290 | |||||||||||
United States—3.9% | |||||||||||
61,490 | American Oriental Bioengineering, Inc.(a)(b) | 84,672 | |||||||||
103,220 | AsiaInfo-Linkage, Inc.(a)(b) | 1,300,572 | |||||||||
39,607 | China Automotive Systems, Inc.(a)(b) | 211,897 | |||||||||
87,586 | China BAK Battery, Inc.(a) | 67,441 | |||||||||
35,941 | China Biologic Products, Inc.(a)(b) | 332,814 | |||||||||
37,738 | China Green Agriculture, Inc.(a)(b) | 156,613 | |||||||||
56,880 | China North East Petroleum Holdings Ltd.(a)(b) | 132,672 | |||||||||
53,830 | China Recycling Energy Corp.(a)(b) | 87,205 | |||||||||
42,763 | China Shen Zhou Mining & Resources, Inc.(a)(b) | 53,454 | |||||||||
35,264 | China TransInfo Technology Corp.(a)(b) | 160,451 | |||||||||
50,457 | China Valves Technology, Inc.(a)(b) | 99,400 | |||||||||
66,716 | China XD Plastics Co. Ltd.(a)(b) | 336,916 | |||||||||
69,365 | ChinaCast Education Corp.(a) | 147,054 | |||||||||
23,354 | Chindex International, Inc.(a) | 228,168 | |||||||||
46,963 | Deer Consumer Products, Inc.(b) | 154,039 | |||||||||
28,921 | Feihe International, Inc.(a)(b) | 168,899 | |||||||||
54,044 | Fushi Copperweld, Inc.(a)(b) | 368,580 | |||||||||
48,051 | Gulf Resources, Inc.(a)(b) | 104,751 | |||||||||
38,365 | Kandi Technolgies Corp.(a)(b) | 138,498 | |||||||||
78,150 | Kingold Jewelry, Inc.(a)(b) | 135,981 | |||||||||
51,053 | L&L Energy, Inc.(a) | 114,869 | |||||||||
42,351 | Lihua International, Inc.(b) | 240,554 | |||||||||
141,994 | Longwei Petroleum Investment Holding Ltd.(a)(b) | 221,511 | |||||||||
25,348 | Orient Paper, Inc.(a)(b) | 76,551 | |||||||||
26,179 | Sino Clean Energy, Inc. CVR(a) | — | |||||||||
28,135 | SinoCoking Coal and Coke Chemical Industries, Inc.(a) | 58,802 | |||||||||
54,158 | Sohu.com, Inc.(a)(b) | 2,792,928 | |||||||||
26,352 | SORL Auto Parts, Inc.(a) | 88,806 | |||||||||
70,883 | Synthesis Energy Systems, Inc.(a) | 99,236 | |||||||||
80,982 | Synutra International, Inc.(a)(b) | 465,646 | |||||||||
50,714 | Trunkbow International Holdings Ltd.(a)(b) | 98,385 | |||||||||
32,014 | Universal Travel Group(a)(b) | 31,694 | |||||||||
33,646 | Winner Medical Group, Inc.(a)(b) | 127,855 | |||||||||
70,741 | Yongye International, Inc.(a)(b) | 227,079 | |||||||||
53,032 | Zhongpin, Inc.(a)(b) | 500,622 | |||||||||
9,614,615 | |||||||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan (Cost $289,971,965)—100.0% | 245,815,169 |
See Notes to Financial Statements.
42
Schedule of Investments (Continued)
PowerShares Golden Dragon China Portfolio (PGJ)
April 30, 2012
Number of Shares | Value | ||||||||||
Investments Purchased with Cash Collateral from Securities on Loan | |||||||||||
Money Market Fund—23.4% | |||||||||||
57,621,503 | Invesco Liquid Assets Portfolio - Institutional Class (Cost $57,621,503)(c)(d) | $ | 57,621,503 | ||||||||
Total Investments (Cost $347,593,468)—123.4% | 303,436,672 | ||||||||||
Liabilities in excess of other assets—(23.4%) | (57,598,706 | ) | |||||||||
Net Assets—100.0% | $ | 245,837,966 |
Investment Abbreviations:
ADR—American Depositary Receipt
CVR—Converted Right
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) All or a portion of this security was out on loan at April 30, 2012.
(c) The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower's return of the securities loaned. See Note 2J.
(d) The security and the Fund are advised by wholly owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.
See Notes to Financial Statements.
43
Schedule of Investments
PowerShares Lux Nanotech Portfolio (PXN)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—99.9% | |||||||||||
Auto Manufacturers—2.8% | |||||||||||
7,612 | Toyota Motor Corp. ADR (Japan) | $ | 622,509 | ||||||||
Biotechnology—9.7% | |||||||||||
604,870 | Nanosphere, Inc.(a) | 1,070,620 | |||||||||
353,448 | Vical, Inc.(a) | 1,102,758 | |||||||||
2,173,378 | |||||||||||
Building Materials—5.2% | |||||||||||
266,693 | Headwaters, Inc.(a) | 1,157,448 | |||||||||
Chemicals—5.7% | |||||||||||
7,109 | Air Products & Chemicals, Inc. | 607,748 | |||||||||
12,226 | E.I. du Pont de Nemours & Co. | 653,602 | |||||||||
1,261,350 | |||||||||||
Computers—6.0% | |||||||||||
27,600 | Hewlett-Packard Co. | 683,376 | |||||||||
3,147 | International Business Machines Corp. | 651,681 | |||||||||
1,335,057 | |||||||||||
Electrical Components & Equipment—8.4% | |||||||||||
838,177 | A123 Systems, Inc.(a)(b) | 854,941 | |||||||||
1,380,528 | Valence Technology, Inc.(a)(b) | 1,007,785 | |||||||||
1,862,726 | |||||||||||
Electronics—10.3% | |||||||||||
23,807 | FEI Co.(a) | 1,194,397 | |||||||||
21,820 | NVE Corp.(a) | 1,105,838 | |||||||||
2,300,235 | |||||||||||
Engineering & Construction—2.8% | |||||||||||
30,028 | Layne Christensen Co.(a) | 617,075 | |||||||||
Healthcare-Products—5.0% | |||||||||||
75,269 | SurModics, Inc.(a) | 1,113,229 | |||||||||
Investment Companies—4.8% | |||||||||||
263,105 | Harris & Harris Group, Inc.(a) | 1,060,313 | |||||||||
Miscellaneous Manufacturing—11.1% | |||||||||||
7,313 | 3M Co. | 653,490 | |||||||||
32,531 | General Electric Co. | 636,957 | |||||||||
31,844 | Polypore International, Inc.(a)(b) | 1,189,373 | |||||||||
2,479,820 | |||||||||||
Pharmaceuticals—10.1% | |||||||||||
79,935 | Elan Corp. PLC ADR (Ireland)(a) | 1,102,304 | |||||||||
214,525 | Flamel Technologies SA ADR (France)(a) | 1,154,144 | |||||||||
2,256,448 | |||||||||||
Semiconductors—12.6% | |||||||||||
23,126 | Intel Corp. | 656,779 | |||||||||
62,651 | Nanometrics, Inc.(a) | 971,717 | |||||||||
39,338 | Veeco Instruments, Inc.(a)(b) | 1,187,614 | |||||||||
2,816,110 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
Software—5.4% | |||||||||||
147,049 | Accelrys, Inc.(a) | $ | 1,210,213 | ||||||||
Total Common Stocks and Other Equity Interests (Cost $24,007,828) | 22,265,911 | ||||||||||
Money Market Fund—0.5% | |||||||||||
104,663 | Goldman Sachs Financial Square Prime Obligations - Institutional Share Class (Cost $104,663) | 104,663 | |||||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $24,112,491)—100.4% | 22,370,574 | ||||||||||
Investments Purchased with Cash Collateral from Securities on Loan | |||||||||||
Money Market Fund—18.4% | |||||||||||
4,094,775 | Invesco Liquid Assets Portfolio - Institutional Class (Cost $4,094,775)(c)(d) | 4,094,775 | |||||||||
Total Investments (Cost $28,207,266)—118.8% | 26,465,349 | ||||||||||
Liabilities in excess of other assets—(18.8%) | (4,182,556 | ) | |||||||||
Net Assets—100.0% | $ | 22,282,793 |
Investment Abbreviations:
ADR—American Depositary Receipt
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) All or a portion of this security was out on loan at April 30, 2012.
(c) The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower's return of the securities loaned. See Note 2J.
(d) The security and the Fund are advised by wholly owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.
See Notes to Financial Statements.
44
Schedule of Investments
PowerShares Morningstar StockInvestor Core Portfolio (PYH)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.0% | |||||||||||
Aerospace/Defense—1.9% | |||||||||||
4,230 | General Dynamics Corp. | $ | 285,525 | ||||||||
Banks—1.6% | |||||||||||
5,768 | JPMorgan Chase & Co. | 247,909 | |||||||||
Beverages—2.0% | |||||||||||
2,692 | Molson Coors Brewing Co., Class B | 111,933 | |||||||||
2,884 | PepsiCo, Inc. | 190,344 | |||||||||
302,277 | |||||||||||
Building Materials—0.8% | |||||||||||
17,073 | Cemex SAB de CV ADR (Mexico)(a) | 123,438 | |||||||||
Coal—1.5% | |||||||||||
15,381 | Cloud Peak Energy, Inc.(a) | 236,714 | |||||||||
Commercial Services—13.2% | |||||||||||
7,498 | Apollo Group, Inc., Class A(a) | 264,079 | |||||||||
6,729 | Automatic Data Processing, Inc. | 374,267 | |||||||||
11,536 | CoreLogic, Inc.(a) | 192,651 | |||||||||
1,154 | MasterCard, Inc., Class A | 521,920 | |||||||||
13,459 | Paychex, Inc. | 416,960 | |||||||||
14,036 | Western Union Co. (The) | 257,982 | |||||||||
2,027,859 | |||||||||||
Computers—0.8% | |||||||||||
7,691 | Dell, Inc.(a) | 125,902 | |||||||||
Cosmetics/Personal Care—1.2% | |||||||||||
2,884 | Procter & Gamble Co. (The) | 183,538 | |||||||||
Diversified Financial Services—6.4% | |||||||||||
4,807 | American Express Co. | 289,430 | |||||||||
1,154 | CME Group, Inc. | 306,756 | |||||||||
11,536 | Discover Financial Services | 391,070 | |||||||||
987,256 | |||||||||||
Electric—3.6% | |||||||||||
14,228 | Exelon Corp. | 555,034 | |||||||||
Entertainment—2.7% | |||||||||||
7,691 | International Game Technology | 119,826 | |||||||||
10,767 | International Speedway Corp., Class A | 287,371 | |||||||||
407,197 | |||||||||||
Food—1.7% | |||||||||||
9,037 | Sysco Corp. | 261,169 | |||||||||
Healthcare-Products—2.0% | |||||||||||
4,807 | Zimmer Holdings, Inc. | 302,504 | |||||||||
Insurance—4.8% | |||||||||||
6,729 | Berkshire Hathaway, Inc., Class B(a) | 541,348 | |||||||||
11,536 | First American Financial Corp. | 193,228 | |||||||||
734,576 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
Internet—6.0% | |||||||||||
12,690 | eBay, Inc.(a) | $ | 520,925 | ||||||||
654 | Google, Inc., Class A(a) | 395,820 | |||||||||
916,745 | |||||||||||
Mining—5.1% | |||||||||||
7,691 | Compass Minerals International, Inc. | 588,515 | |||||||||
4,614 | Vulcan Materials Co. | 197,526 | |||||||||
786,041 | |||||||||||
Miscellaneous Manufacturing—1.1% | |||||||||||
1,923 | 3M Co. | 171,839 | |||||||||
Oil & Gas—3.8% | |||||||||||
6,845 | Exxon Mobil Corp. | 590,997 | |||||||||
Pharmaceuticals—14.9% | |||||||||||
11,113 | Abbott Laboratories | 689,673 | |||||||||
8,460 | Express Scripts Holding Co.(a) | 471,983 | |||||||||
4,999 | Johnson & Johnson | 325,385 | |||||||||
7,114 | Novartis AG ADR (Switzerland) | 392,479 | |||||||||
18,073 | Pfizer, Inc. | 414,414 | |||||||||
2,293,934 | |||||||||||
Pipelines—3.7% | |||||||||||
4,219 | Kinder Morgan Management LLC(a) | 321,226 | |||||||||
5,768 | TransCanada Corp. (Canada)(b) | 253,677 | |||||||||
574,903 | |||||||||||
Real Estate—4.7% | |||||||||||
40,376 | St. Joe Co. (The)(a)(b) | 719,904 | |||||||||
Retail—7.7% | |||||||||||
7,691 | CarMax, Inc.(a) | 237,421 | |||||||||
19,227 | Lowe's Cos., Inc. | 605,074 | |||||||||
5,768 | Wal-Mart Stores, Inc. | 339,793 | |||||||||
1,182,288 | |||||||||||
Software—5.5% | |||||||||||
9,613 | Autodesk, Inc.(a) | 378,464 | |||||||||
5,768 | Microsoft Corp. | 184,691 | |||||||||
9,613 | Oracle Corp. | 282,526 | |||||||||
845,681 | |||||||||||
Telecommunications—1.3% | |||||||||||
9,613 | Cisco Systems, Inc. | 193,702 | |||||||||
Textiles—2.0% | |||||||||||
7,691 | Cintas Corp. | 301,257 | |||||||||
Total Common Stocks and Other Equity Interests (Cost $13,039,460) | 15,358,189 |
See Notes to Financial Statements.
45
Schedule of Investments (Continued)
PowerShares Morningstar StockInvestor Core Portfolio (PYH)
April 30, 2012
Number of Shares | Value | ||||||||||
Money Market Fund—0.6% | |||||||||||
96,686 | Goldman Sachs Financial Square Prime Obligations - Institutional Share Class (Cost $96,686) | $ | 96,686 | ||||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $13,136,146)—100.6% | 15,454,875 | ||||||||||
Investments Purchased with Cash Collateral from Securities on Loan | |||||||||||
Money Market Fund—4.9% | |||||||||||
753,942 | Invesco Liquid Assets Portfolio - Institutional Class (Cost $753,942)(c)(d) | 753,942 | |||||||||
Total Investments (Cost $13,890,088)—105.5% | 16,208,817 | ||||||||||
Liabilities in excess of other assets—(5.5%) | (843,122 | ) | |||||||||
Net Assets—100.0% | $ | 15,365,695 |
Investment Abbreviations:
ADR—American Depositary Receipt
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) All or a portion of this security was out on loan at April 30, 2012.
(c) The security and the Fund are advised by wholly owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.
(d) The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower's return of the securities loaned. See Note 2J.
See Notes to Financial Statements.
46
Schedule of Investments
PowerShares S&P 500 BuyWrite Portfolio (PBP)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests(a)—101.5% | |||||||||||
Consumer Discretionary—11.4% | |||||||||||
1,063 | Abercrombie & Fitch Co., Class A | $ | 53,331 | ||||||||
4,524 | Amazon.com, Inc.(b) | 1,049,116 | |||||||||
1,395 | Apollo Group, Inc., Class A(b) | 49,132 | |||||||||
529 | AutoNation, Inc.(b) | 18,293 | |||||||||
337 | AutoZone, Inc.(b) | 133,506 | |||||||||
2,942 | Bed Bath & Beyond, Inc.(b) | 207,087 | |||||||||
3,521 | Best Buy Co., Inc. | 77,708 | |||||||||
812 | Big Lots, Inc.(b) | 29,752 | |||||||||
1,355 | BorgWarner, Inc.(b) | 107,099 | |||||||||
2,691 | Cablevision Systems Corp., Class A | 39,881 | |||||||||
2,815 | CarMax, Inc.(b) | 86,899 | |||||||||
5,621 | Carnival Corp. | 182,626 | |||||||||
8,060 | CBS Corp., Class B | 268,801 | |||||||||
391 | Chipotle Mexican Grill, Inc.(b) | 161,933 | |||||||||
3,574 | Coach, Inc. | 261,474 | |||||||||
33,477 | Comcast Corp., Class A | 1,015,357 | |||||||||
3,461 | D.R. Horton, Inc. | 56,587 | |||||||||
1,597 | Darden Restaurants, Inc. | 79,978 | |||||||||
742 | DeVry, Inc. | 23,855 | |||||||||
8,396 | DIRECTV, Class A(b) | 413,671 | |||||||||
3,207 | Discovery Communications, Inc., Class A(b) | 174,525 | |||||||||
1,479 | Dollar Tree, Inc.(b) | 150,355 | |||||||||
1,179 | Expedia, Inc. | 50,261 | |||||||||
1,464 | Family Dollar Stores, Inc. | 98,893 | |||||||||
47,190 | Ford Motor Co. | 532,303 | |||||||||
643 | Fossil, Inc.(b) | 84,021 | |||||||||
1,692 | GameStop Corp., Class A | 38,510 | |||||||||
2,944 | Gannett Co., Inc. | 40,686 | |||||||||
4,121 | Gap, Inc. (The) | 117,448 | |||||||||
1,935 | Genuine Parts Co. | 125,349 | |||||||||
3,035 | Goodyear Tire & Rubber Co. (The)(b) | 33,324 | |||||||||
3,635 | H&R Block, Inc. | 53,434 | |||||||||
2,838 | Harley-Davidson, Inc. | 148,512 | |||||||||
873 | Harman International Industries, Inc. | 43,283 | |||||||||
1,440 | Hasbro, Inc. | 52,906 | |||||||||
19,141 | Home Depot, Inc. (The) | 991,312 | |||||||||
3,696 | International Game Technology | 57,584 | |||||||||
5,539 | Interpublic Group of Cos., Inc. (The) | 65,416 | |||||||||
1,796 | J.C. Penney Co., Inc. | 64,764 | |||||||||
8,450 | Johnson Controls, Inc. | 270,146 | |||||||||
3,147 | Kohl's Corp. | 157,759 | |||||||||
1,741 | Leggett & Platt, Inc. | 37,902 | |||||||||
2,012 | Lennar Corp., Class A | 55,813 | |||||||||
3,052 | Limited Brands, Inc. | 151,684 | |||||||||
15,409 | Lowe's Cos., Inc. | 484,921 | |||||||||
5,141 | Macy's, Inc. | 210,884 | |||||||||
3,315 | Marriott International, Inc., Class A | 129,583 | |||||||||
4,208 | Mattel, Inc. | 141,389 | |||||||||
12,657 | McDonald's Corp. | 1,233,425 | |||||||||
3,451 | McGraw-Hill Cos., Inc. (The) | 169,686 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests(a) (Continued) | |||||||||||
691 | Netflix, Inc.(b) | $ | 55,377 | ||||||||
3,581 | Newell Rubbermaid, Inc. | 65,174 | |||||||||
26,722 | News Corp., Class A | 523,751 | |||||||||
4,556 | NIKE, Inc., Class B | 509,680 | |||||||||
1,983 | Nordstrom, Inc. | 110,770 | |||||||||
3,389 | Omnicom Group, Inc. | 173,890 | |||||||||
1,583 | O'Reilly Automotive, Inc.(b) | 166,943 | |||||||||
618 | Priceline.com, Inc.(b) | 470,187 | |||||||||
4,181 | PulteGroup, Inc.(b) | 41,141 | |||||||||
800 | Ralph Lauren Corp. | 137,816 | |||||||||
2,839 | Ross Stores, Inc. | 174,854 | |||||||||
1,186 | Scripps Networks Interactive, Inc., Class A | 59,561 | |||||||||
474 | Sears Holdings Corp.(b) | 25,492 | |||||||||
8,615 | Staples, Inc. | 132,671 | |||||||||
9,352 | Starbucks Corp. | 536,618 | |||||||||
2,433 | Starwood Hotels & Resorts Worldwide, Inc. | 144,034 | |||||||||
8,341 | Target Corp. | 483,277 | |||||||||
1,579 | Tiffany & Co. | 108,098 | |||||||||
3,899 | Time Warner Cable, Inc. | 313,674 | |||||||||
12,037 | Time Warner, Inc. | 450,906 | |||||||||
9,362 | TJX Cos., Inc. (The) | 390,489 | |||||||||
1,177 | TripAdvisor, Inc.(b) | 44,149 | |||||||||
1,377 | Urban Outfitters, Inc.(b) | 39,878 | |||||||||
1,083 | VF Corp. | 164,670 | |||||||||
6,708 | Viacom, Inc., Class B | 311,184 | |||||||||
22,251 | Walt Disney Co. (The) | 959,241 | |||||||||
57 | Washington Post Co. (The), Class B | 21,556 | |||||||||
949 | Whirlpool Corp. | 60,755 | |||||||||
1,811 | Wyndham Worldwide Corp. | 91,166 | |||||||||
989 | Wynn Resorts Ltd. | 131,933 | |||||||||
5,716 | Yum! Brands, Inc. | 415,725 | |||||||||
17,596,824 | |||||||||||
Consumer Staples—11.0% | |||||||||||
25,396 | Altria Group, Inc. | 818,005 | |||||||||
8,216 | Archer-Daniels-Midland Co. | 253,299 | |||||||||
5,352 | Avon Products, Inc. | 115,603 | |||||||||
1,946 | Beam, Inc. | 110,494 | |||||||||
1,232 | Brown-Forman Corp., Class B | 106,383 | |||||||||
2,217 | Campbell Soup Co. | 75,001 | |||||||||
1,613 | Clorox Co. (The) | 113,071 | |||||||||
28,123 | Coca-Cola Co. (The) | 2,146,347 | |||||||||
3,729 | Coca-Cola Enterprises, Inc. | 112,318 | |||||||||
5,956 | Colgate-Palmolive Co. | 589,287 | |||||||||
5,121 | ConAgra Foods, Inc. | 132,224 | |||||||||
2,131 | Constellation Brands, Inc., Class A(b) | 46,030 | |||||||||
5,400 | Costco Wholesale Corp. | 476,118 | |||||||||
16,171 | CVS Caremark Corp. | 721,550 | |||||||||
2,286 | Dean Foods Co.(b) | 28,072 | |||||||||
2,636 | Dr Pepper Snapple Group, Inc. | 106,969 | |||||||||
2,794 | Estee Lauder Cos., Inc. (The), Class A | 182,588 |
See Notes to Financial Statements.
47
Schedule of Investments (Continued)
PowerShares S&P 500 BuyWrite Portfolio (PBP)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests(a) (Continued) | |||||||||||
8,001 | General Mills, Inc. | $ | 311,159 | ||||||||
3,969 | H.J. Heinz Co. | 211,587 | |||||||||
1,906 | Hershey Co. (The) | 127,721 | |||||||||
1,702 | Hormel Foods Corp. | 49,460 | |||||||||
1,405 | J.M. Smucker Co. (The) | 111,880 | |||||||||
3,057 | Kellogg Co. | 154,593 | |||||||||
4,890 | Kimberly-Clark Corp. | 383,718 | |||||||||
21,951 | Kraft Foods, Inc., Class A | 875,186 | |||||||||
7,138 | Kroger Co. (The) | 166,101 | |||||||||
1,639 | Lorillard, Inc. | 221,740 | |||||||||
1,652 | McCormick & Co., Inc. | 92,363 | |||||||||
2,529 | Mead Johnson Nutrition Co. | 216,381 | |||||||||
1,950 | Molson Coors Brewing Co., Class B | 81,081 | |||||||||
19,518 | PepsiCo, Inc. | 1,288,188 | |||||||||
21,397 | Philip Morris International, Inc. | 1,915,246 | |||||||||
34,227 | Procter & Gamble Co. (The) | 2,178,206 | |||||||||
4,151 | Reynolds American, Inc. | 169,485 | |||||||||
3,326 | Safeway, Inc. | 67,618 | |||||||||
7,345 | Sara Lee Corp. | 161,884 | |||||||||
18 | SUPERVALU, Inc. | 107 | |||||||||
7,255 | Sysco Corp. | 209,670 | |||||||||
3,618 | Tyson Foods, Inc., Class A | 66,029 | |||||||||
10,843 | Walgreen Co. | 380,156 | |||||||||
�� | 21,687 | Wal-Mart Stores, Inc. | 1,277,581 | ||||||||
2,012 | Whole Foods Market, Inc. | 167,137 | |||||||||
17,017,636 | |||||||||||
Energy—11.4% | |||||||||||
2,730 | Alpha Natural Resources, Inc.(b) | 44,035 | |||||||||
6,187 | Anadarko Petroleum Corp. | 452,950 | |||||||||
4,773 | Apache Corp. | 457,922 | |||||||||
5,431 | Baker Hughes, Inc. | 239,561 | |||||||||
2,603 | Cabot Oil & Gas Corp. | 91,469 | |||||||||
3,054 | Cameron International Corp.(b) | 156,517 | |||||||||
8,226 | Chesapeake Energy Corp. | 151,687 | |||||||||
24,567 | Chevron Corp. | 2,617,860 | |||||||||
15,902 | ConocoPhillips | 1,139,060 | |||||||||
2,821 | CONSOL Energy, Inc. | 93,770 | |||||||||
4,844 | Denbury Resources, Inc.(b) | 92,230 | |||||||||
5,014 | Devon Energy Corp. | 350,228 | |||||||||
865 | Diamond Offshore Drilling, Inc. | 59,296 | |||||||||
9,595 | El Paso Corp. | 284,684 | |||||||||
3,339 | EOG Resources, Inc. | 366,656 | |||||||||
1,854 | EQT Corp. | 92,366 | |||||||||
58,569 | Exxon Mobil Corp. | 5,056,847 | |||||||||
2,969 | FMC Technologies, Inc.(b) | 139,543 | |||||||||
11,457 | Halliburton Co. | 392,059 | |||||||||
1,334 | Helmerich & Payne, Inc. | 68,554 | |||||||||
3,756 | Hess Corp. | 195,838 | |||||||||
8,738 | Marathon Oil Corp. | 256,373 | |||||||||
4,317 | Marathon Petroleum Corp. | 179,630 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests(a) (Continued) | |||||||||||
2,407 | Murphy Oil Corp. | $ | 132,313 | ||||||||
3,585 | Nabors Industries Ltd. (Bermuda)(b) | 59,690 | |||||||||
5,266 | National Oilwell Varco, Inc. | 398,952 | |||||||||
1,645 | Newfield Exploration Co.(b) | 59,056 | |||||||||
3,132 | Noble Corp. (Switzerland) | 119,204 | |||||||||
2,199 | Noble Energy, Inc. | 218,405 | |||||||||
10,069 | Occidental Petroleum Corp. | 918,494 | |||||||||
3,383 | Peabody Energy Corp. | 105,245 | |||||||||
1,529 | Pioneer Natural Resources Co. | 177,089 | |||||||||
2,206 | QEP Resources, Inc. | 67,967 | |||||||||
1,959 | Range Resources Corp. | 130,587 | |||||||||
1,533 | Rowan Cos., Inc.(b) | 52,934 | |||||||||
16,574 | Schlumberger Ltd. | 1,228,796 | |||||||||
4,334 | Southwestern Energy Co.(b) | 136,868 | |||||||||
8,085 | Spectra Energy Corp. | 248,533 | |||||||||
1,327 | Sunoco, Inc. | 65,408 | |||||||||
1,729 | Tesoro Corp.(b) | 40,199 | |||||||||
6,892 | Valero Energy Corp. | 170,232 | |||||||||
7,352 | Williams Cos., Inc. (The) | 250,189 | |||||||||
2,463 | WPX Energy, Inc.(b) | 43,275 | |||||||||
17,602,571 | |||||||||||
Financials—14.9% | |||||||||||
4,186 | ACE Ltd. | 318,010 | |||||||||
5,801 | Aflac, Inc. | 261,277 | |||||||||
6,185 | Allstate Corp. (The) | 206,146 | |||||||||
12,599 | American Express Co. | 758,586 | |||||||||
6,683 | American International Group, Inc.(b) | 227,422 | |||||||||
4,891 | American Tower Corp. REIT | 320,752 | |||||||||
2,753 | Ameriprise Financial, Inc. | 149,240 | |||||||||
4,038 | Aon PLC (United Kingdom) | 209,168 | |||||||||
1,504 | Apartment Investment & Management Co., Class A REIT | 40,834 | |||||||||
1,085 | Assurant, Inc. | 43,769 | |||||||||
1,183 | AvalonBay Communities, Inc. REIT | 172,008 | |||||||||
133,245 | Bank of America Corp. | 1,080,617 | |||||||||
14,960 | Bank of New York Mellon Corp. (The) | 353,804 | |||||||||
8,658 | BB&T Corp. | 277,402 | |||||||||
21,849 | Berkshire Hathaway, Inc., Class B(b) | 1,757,752 | |||||||||
1,244 | BlackRock, Inc. | 238,326 | |||||||||
1,839 | Boston Properties, Inc. REIT | 199,072 | |||||||||
6,872 | Capital One Financial Corp. | 381,259 | |||||||||
4,071 | CBRE Group, Inc., Class A(b) | 76,576 | |||||||||
13,415 | Charles Schwab Corp. (The) | 191,834 | |||||||||
3,363 | Chubb Corp. (The) | 245,734 | |||||||||
2,012 | Cincinnati Financial Corp. | 71,667 | |||||||||
36,394 | Citigroup, Inc. | 1,202,458 | |||||||||
823 | CME Group, Inc. | 218,770 | |||||||||
2,451 | Comerica, Inc. | 78,481 | |||||||||
6,581 | Discover Financial Services | 223,096 | |||||||||
3,152 | E*TRADE Financial Corp.(b) | 33,506 |
See Notes to Financial Statements.
48
Schedule of Investments (Continued)
PowerShares S&P 500 BuyWrite Portfolio (PBP)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests(a) (Continued) | |||||||||||
3,728 | Equity Residential REIT | $ | 229,048 | ||||||||
1,149 | Federated Investors, Inc., Class B | 25,370 | |||||||||
11,420 | Fifth Third Bancorp | 162,507 | |||||||||
3,182 | First Horizon National Corp. | 29,211 | |||||||||
1,771 | Franklin Resources, Inc. | 222,278 | |||||||||
6,103 | Genworth Financial, Inc., Class A(b) | 36,679 | |||||||||
6,145 | Goldman Sachs Group, Inc. (The) | 707,597 | |||||||||
5,463 | Hartford Financial Services Group, Inc. (The) | 112,265 | |||||||||
5,085 | HCP, Inc. REIT | 210,773 | |||||||||
2,608 | Health Care REIT, Inc. | 147,769 | |||||||||
8,787 | Host Hotels & Resorts, Inc. REIT | 146,216 | |||||||||
6,552 | Hudson City Bancorp, Inc. | 46,257 | |||||||||
10,734 | Huntington Bancshares, Inc. | 71,810 | |||||||||
901 | IntercontinentalExchange, Inc.(b) | 119,869 | |||||||||
5,540 | Invesco Ltd.(c) | 137,614 | |||||||||
47,436 | JPMorgan Chase & Co. | 2,038,799 | |||||||||
11,833 | KeyCorp | 95,137 | |||||||||
5,055 | Kimco Realty Corp. REIT | 98,118 | |||||||||
1,542 | Legg Mason, Inc. | 40,200 | |||||||||
2,457 | Leucadia National Corp. | 61,081 | |||||||||
3,616 | Lincoln National Corp. | 89,568 | |||||||||
3,792 | Loews Corp. | 155,965 | |||||||||
1,567 | M&T Bank Corp. | 135,185 | |||||||||
6,747 | Marsh & McLennan Cos., Inc. | 225,687 | |||||||||
13,166 | MetLife, Inc. | 474,371 | |||||||||
2,434 | Moody's Corp. | 99,672 | |||||||||
18,915 | Morgan Stanley | 326,851 | |||||||||
1,548 | NASDAQ OMX Group, Inc. (The) | 38,034 | |||||||||
2,994 | Northern Trust Corp. | 142,484 | |||||||||
3,205 | NYSE Euronext | 82,529 | |||||||||
4,461 | People's United Financial, Inc. | 55,049 | |||||||||
2,002 | Plum Creek Timber Co., Inc. REIT | 84,164 | |||||||||
6,552 | PNC Financial Services Group, Inc. | 434,529 | |||||||||
3,743 | Principal Financial Group, Inc. | 103,569 | |||||||||
7,594 | Progressive Corp. (The) | 161,752 | |||||||||
5,698 | ProLogis, Inc. REIT | 203,874 | |||||||||
5,836 | Prudential Financial, Inc. | 353,311 | |||||||||
1,766 | Public Storage REIT | 252,997 | |||||||||
17,543 | Regions Financial Corp. | 118,240 | |||||||||
3,800 | Simon Property Group, Inc. REIT | 591,280 | |||||||||
6,322 | SLM Corp. | 93,755 | |||||||||
6,055 | State Street Corp. | 279,862 | |||||||||
6,609 | SunTrust Banks, Inc. | 160,467 | |||||||||
3,147 | T. Rowe Price Group, Inc. | 198,623 | |||||||||
1,242 | Torchmark Corp. | 60,498 | |||||||||
4,883 | Travelers Cos., Inc. (The) | 314,075 | |||||||||
23,724 | U.S. Bancorp | 763,201 | |||||||||
3,608 | Unum Group | 85,654 | |||||||||
3,587 | Ventas, Inc. REIT | 210,880 | |||||||||
2,296 | Vornado Realty Trust REIT | 197,089 | |||||||||
65,528 | Wells Fargo & Co. | 2,190,601 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests(a) (Continued) | |||||||||||
6,658 | Weyerhaeuser Co. REIT | $ | 135,557 | ||||||||
3,918 | XL Group PLC (Ireland) | 84,276 | |||||||||
2,285 | Zions Bancorp. | 46,591 | |||||||||
23,026,404 | |||||||||||
Health Care—11.6% | |||||||||||
19,539 | Abbott Laboratories | 1,212,590 | |||||||||
4,350 | Aetna, Inc. | 191,574 | |||||||||
4,317 | Agilent Technologies, Inc. | 182,091 | |||||||||
3,779 | Allergan, Inc. | 362,784 | |||||||||
3,199 | AmerisourceBergen Corp. | 119,035 | |||||||||
9,829 | Amgen, Inc. | 698,940 | |||||||||
6,955 | Baxter International, Inc. | 385,377 | |||||||||
2,606 | Becton, Dickinson and Co. | 204,441 | |||||||||
2,965 | Biogen Idec, Inc.(b) | 397,340 | |||||||||
18,018 | Boston Scientific Corp.(b) | 112,793 | |||||||||
20,960 | Bristol-Myers Squibb Co. | 699,435 | |||||||||
1,044 | C.R. Bard, Inc. | 103,314 | |||||||||
4,294 | Cardinal Health, Inc. | 181,507 | |||||||||
2,793 | CareFusion Corp.(b) | 72,367 | |||||||||
5,446 | Celgene Corp.(b) | 397,122 | |||||||||
1,811 | Cerner Corp.(b) | 146,854 | |||||||||
3,559 | CIGNA Corp. | 164,533 | |||||||||
1,755 | Coventry Health Care, Inc.(b) | 52,632 | |||||||||
6,001 | Covidien PLC (Ireland) | 331,435 | |||||||||
1,165 | DaVita, Inc.(b) | 103,196 | |||||||||
1,765 | DENTSPLY International, Inc. | 72,471 | |||||||||
1,430 | Edwards Lifesciences Corp.(b) | 118,647 | |||||||||
12,681 | Eli Lilly & Co. | 524,867 | |||||||||
9,921 | Express Scripts Holding Co.(b) | 553,493 | |||||||||
3,297 | Forest Laboratories, Inc.(b) | 114,834 | |||||||||
9,404 | Gilead Sciences, Inc.(b) | 489,102 | |||||||||
2,047 | Hospira, Inc.(b) | 71,891 | |||||||||
2,039 | Humana, Inc. | 164,506 | |||||||||
488 | Intuitive Surgical, Inc.(b) | 282,162 | |||||||||
34,111 | Johnson & Johnson | 2,220,285 | |||||||||
1,206 | Laboratory Corp. of America Holdings(b) | 105,995 | |||||||||
2,215 | Life Technologies Corp.(b) | 102,687 | |||||||||
3,053 | McKesson Corp. | 279,075 | |||||||||
12,918 | Medtronic, Inc. | 493,468 | |||||||||
37,826 | Merck & Co., Inc. | 1,484,292 | |||||||||
5,298 | Mylan, Inc.(b) | 115,020 | |||||||||
1,086 | Patterson Cos., Inc. | 37,022 | |||||||||
1,406 | PerkinElmer, Inc. | 38,806 | |||||||||
1,160 | Perrigo Co. | 121,684 | |||||||||
93,677 | Pfizer, Inc. | 2,148,014 | |||||||||
1,965 | Quest Diagnostics, Inc. | 113,361 | |||||||||
3,981 | St. Jude Medical, Inc. | 154,144 | |||||||||
4,022 | Stryker Corp. | 219,480 | |||||||||
5,091 | Tenet Healthcare Corp.(b) | 26,422 | |||||||||
4,540 | Thermo Fisher Scientific, Inc. | 252,651 |
See Notes to Financial Statements.
49
Schedule of Investments (Continued)
PowerShares S&P 500 BuyWrite Portfolio (PBP)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests(a) (Continued) | |||||||||||
12,972 | UnitedHealth Group, Inc. | $ | 728,378 | ||||||||
1,401 | Varian Medical Systems, Inc.(b) | 88,851 | |||||||||
1,103 | Waters Corp.(b) | 92,773 | |||||||||
1,582 | Watson Pharmaceuticals, Inc.(b) | 119,219 | |||||||||
4,158 | WellPoint, Inc. | 281,996 | |||||||||
2,213 | Zimmer Holdings, Inc.(d) | 139,264 | |||||||||
17,874,220 | |||||||||||
Industrials—10.7% | |||||||||||
8,621 | 3M Co. | 770,373 | |||||||||
1,322 | Avery Dennison Corp. | 42,278 | |||||||||
9,260 | Boeing Co. (The) | 711,168 | |||||||||
2,031 | C.H. Robinson Worldwide, Inc. | 121,332 | |||||||||
8,042 | Caterpillar, Inc. | 826,476 | |||||||||
1,368 | Cintas Corp. | 53,585 | |||||||||
1,967 | Cooper Industries PLC (Ireland) | 123,075 | |||||||||
13,064 | CSX Corp. | 291,458 | |||||||||
2,384 | Cummins, Inc. | 276,139 | |||||||||
7,101 | Danaher Corp. | 385,016 | |||||||||
4,987 | Deere & Co. | 410,729 | |||||||||
2,279 | Dover Corp. | 142,802 | |||||||||
593 | Dun & Bradstreet Corp. (The) | 46,124 | |||||||||
4,157 | Eaton Corp. | 200,284 | |||||||||
9,120 | Emerson Electric Co. | 479,165 | |||||||||
1,488 | Equifax, Inc. | 68,180 | |||||||||
2,636 | Expeditors International of Washington, Inc. | 105,440 | |||||||||
3,663 | Fastenal Co. | 171,502 | |||||||||
3,904 | FedEx Corp. | 344,489 | |||||||||
680 | Flowserve Corp. | 78,152 | |||||||||
2,098 | Fluor Corp. | 121,159 | |||||||||
4,433 | General Dynamics Corp. | 299,227 | |||||||||
131,488 | General Electric Co. | 2,574,535 | |||||||||
1,559 | Goodrich Corp. | 195,592 | |||||||||
9,625 | Honeywell International, Inc. | 583,852 | |||||||||
6,006 | Illinois Tool Works, Inc. | 344,624 | |||||||||
3,694 | Ingersoll-Rand PLC (Ireland) | 157,069 | |||||||||
2,123 | Iron Mountain, Inc. | 64,475 | |||||||||
1,597 | Jacobs Engineering Group, Inc.(b) | 69,997 | |||||||||
1,315 | Joy Global, Inc. | 93,063 | |||||||||
1,228 | L-3 Communications Holdings, Inc. | 90,307 | |||||||||
3,309 | Lockheed Martin Corp. | 299,597 | |||||||||
4,438 | Masco Corp. | 58,493 | |||||||||
4,097 | Norfolk Southern Corp. | 298,794 | |||||||||
3,137 | Northrop Grumman Corp. | 198,509 | |||||||||
4,434 | PACCAR, Inc. | 190,485 | |||||||||
1,436 | Pall Corp. | 85,600 | |||||||||
1,871 | Parker Hannifin Corp.(d) | 164,068 | |||||||||
2,483 | Pitney Bowes, Inc. | 42,534 | |||||||||
1,802 | Precision Castparts Corp. | 317,819 | |||||||||
2,622 | Quanta Services, Inc.(b) | 57,999 | |||||||||
2,217 | R.R. Donnelley & Sons Co. | 27,735 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests(a) (Continued) | |||||||||||
4,219 | Raytheon Co. | $ | 228,417 | ||||||||
3,905 | Republic Services, Inc. | 106,880 | |||||||||
1,766 | Robert Half International, Inc. | 52,627 | |||||||||
1,769 | Rockwell Automation, Inc. | 136,814 | |||||||||
1,843 | Rockwell Collins, Inc. | 103,005 | |||||||||
1,203 | Roper Industries, Inc. | 122,586 | |||||||||
634 | Ryder System, Inc. | 30,888 | |||||||||
726 | Snap-On, Inc. | 45,404 | |||||||||
9,596 | Southwest Airlines Co. | 79,455 | |||||||||
2,105 | Stanley Black & Decker, Inc. | 154,002 | |||||||||
1,052 | Stericycle, Inc.(b) | 91,103 | |||||||||
3,471 | Textron, Inc. | 92,467 | |||||||||
5,722 | Tyco International Ltd. (Switzerland) | 321,176 | |||||||||
5,962 | Union Pacific Corp. | 670,367 | |||||||||
11,901 | United Parcel Service, Inc., Class B | 929,944 | |||||||||
11,298 | United Technologies Corp. | 922,369 | |||||||||
757 | W.W. Grainger, Inc. | 157,320 | |||||||||
5,727 | Waste Management, Inc. | 195,863 | |||||||||
2,292 | Xylem, Inc.(b) | 63,901 | |||||||||
16,487,888 | |||||||||||
Information Technology—20.6% | |||||||||||
8,038 | Accenture PLC, Class A (Ireland) | 522,068 | |||||||||
6,131 | Adobe Systems, Inc.(b) | 205,756 | |||||||||
7,287 | Advanced Micro Devices, Inc.(b) | 53,632 | |||||||||
2,209 | Akamai Technologies, Inc.(b) | 72,013 | |||||||||
4,004 | Altera Corp. | 142,422 | |||||||||
2,031 | Amphenol Corp., Class A | 118,082 | |||||||||
3,700 | Analog Devices, Inc. | 144,226 | |||||||||
11,586 | Apple, Inc.(b) | 6,769,005 | |||||||||
16,030 | Applied Materials, Inc. | 192,200 | |||||||||
2,806 | Autodesk, Inc.(b) | 110,472 | |||||||||
6,093 | Automatic Data Processing, Inc. | 338,893 | |||||||||
2,041 | BMC Software, Inc.(b) | 84,212 | |||||||||
6,092 | Broadcom Corp., Class A | 222,967 | |||||||||
4,521 | CA, Inc. | 119,445 | |||||||||
66,928 | Cisco Systems, Inc. | 1,348,599 | |||||||||
2,302 | Citrix Systems, Inc.(b) | 197,074 | |||||||||
3,766 | Cognizant Technology Solutions Corp., Class A(b) | 276,123 | |||||||||
1,926 | Computer Sciences Corp. | 54,044 | |||||||||
18,895 | Corning, Inc. | 271,143 | |||||||||
18,956 | Dell, Inc.(b) | 310,310 | |||||||||
14,221 | eBay, Inc.(b) | 583,772 | |||||||||
4,112 | Electronic Arts, Inc.(b) | 63,243 | |||||||||
25,490 | EMC Corp.(b) | 719,073 | |||||||||
986 | F5 Networks, Inc.(b) | 132,055 | |||||||||
2,909 | Fidelity National Information Services, Inc. | 97,946 | |||||||||
731 | First Solar, Inc.(b) | 13,450 | |||||||||
1,718 | Fiserv, Inc.(b) | 120,758 | |||||||||
1,914 | FLIR Systems, Inc. | 42,988 |
See Notes to Financial Statements.
50
Schedule of Investments (Continued)
PowerShares S&P 500 BuyWrite Portfolio (PBP)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests(a) (Continued) | |||||||||||
3,151 | Google, Inc., Class A(b) | $ | 1,907,080 | ||||||||
1,411 | Harris Corp. | 64,257 | |||||||||
24,539 | Hewlett-Packard Co. | 607,586 | |||||||||
62,083 | Intel Corp. | 1,763,157 | |||||||||
14,398 | International Business Machines Corp. | 2,981,538 | |||||||||
3,659 | Intuit, Inc. | 212,112 | |||||||||
2,288 | Jabil Circuit, Inc. | 53,654 | |||||||||
2,853 | JDS Uniphase Corp.(b) | 34,664 | |||||||||
6,538 | Juniper Networks, Inc.(b) | 140,109 | |||||||||
2,071 | KLA-Tencor Corp. | 108,003 | |||||||||
880 | Lexmark International, Inc., Class A | 26,488 | |||||||||
2,843 | Linear Technology Corp. | 92,995 | |||||||||
7,037 | LSI Corp.(b) | 56,577 | |||||||||
1,321 | MasterCard, Inc., Class A | 597,449 | |||||||||
2,385 | Microchip Technology, Inc. | 84,286 | |||||||||
12,266 | Micron Technology, Inc.(b) | 80,833 | |||||||||
92,799 | Microsoft Corp. | 2,971,424 | |||||||||
1,703 | Molex, Inc. | 46,986 | |||||||||
3,274 | Motorola Mobility Holdings, Inc.(b) | 127,097 | |||||||||
3,651 | Motorola Solutions, Inc. | 186,311 | |||||||||
4,506 | NetApp, Inc.(b) | 174,968 | |||||||||
878 | Novellus Systems, Inc.(b) | 41,046 | �� | ||||||||
7,584 | NVIDIA Corp.(b) | 98,592 | |||||||||
48,714 | Oracle Corp. | 1,431,704 | |||||||||
4,006 | Paychex, Inc. | 124,106 | |||||||||
21,018 | QUALCOMM, Inc. | 1,341,789 | |||||||||
2,398 | Red Hat, Inc.(b) | 142,945 | |||||||||
3,432 | SAIC, Inc. | 41,733 | |||||||||
1,687 | Salesforce.com, Inc.(b) | 262,716 | |||||||||
3,009 | SanDisk Corp.(b) | 111,363 | |||||||||
9,054 | Symantec Corp.(b) | 149,572 | |||||||||
5,289 | TE Connectivity Ltd. (Switzerland) | 192,837 | |||||||||
2,079 | Teradata Corp.(b) | 145,073 | |||||||||
2,312 | Teradyne, Inc.(b) | 39,790 | |||||||||
14,217 | Texas Instruments, Inc. | 454,091 | |||||||||
1,992 | Total System Services, Inc. | 46,852 | |||||||||
1,979 | VeriSign, Inc. | 81,357 | |||||||||
6,175 | Visa, Inc., Class A | 759,401 | |||||||||
2,902 | Western Digital Corp.(b) | 112,627 | |||||||||
7,700 | Western Union Co. (The) | 141,526 | |||||||||
16,534 | Xerox Corp. | 128,634 | |||||||||
3,253 | Xilinx, Inc. | 118,344 | |||||||||
15,067 | Yahoo!, Inc.(b) | 234,141 | |||||||||
31,843,784 | |||||||||||
Materials—3.5% | |||||||||||
2,612 | Air Products & Chemicals, Inc. | 223,300 | |||||||||
855 | Airgas, Inc. | 78,352 | |||||||||
13,235 | Alcoa, Inc. | 128,776 | |||||||||
1,326 | Allegheny Technologies, Inc. | 56,938 | |||||||||
1,939 | Ball Corp. | 80,973 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests(a) (Continued) | |||||||||||
1,283 | Bemis Co., Inc. | $ | 41,556 | ||||||||
810 | CF Industries Holdings, Inc. | 156,379 | |||||||||
1,765 | Cliffs Natural Resources, Inc. | 109,889 | |||||||||
14,716 | Dow Chemical Co. (The) | 498,578 | |||||||||
11,573 | E.I. du Pont de Nemours & Co. | 618,693 | |||||||||
1,699 | Eastman Chemical Co. | 91,695 | |||||||||
3,616 | Ecolab, Inc. | 230,303 | |||||||||
868 | FMC Corp. | 95,871 | |||||||||
11,766 | Freeport-McMoRan Copper & Gold, Inc. | 450,638 | |||||||||
1,007 | International Flavors & Fragrances, Inc. | 60,631 | |||||||||
5,425 | International Paper Co. | 180,707 | |||||||||
2,122 | MeadWestvaco Corp.(b) | 59,840 | |||||||||
6,645 | Monsanto Co. | 506,216 | |||||||||
3,699 | Mosaic Co. (The) | 195,381 | |||||||||
6,147 | Newmont Mining Corp. | 292,905 | |||||||||
3,933 | Nucor Corp. | 154,213 | |||||||||
2,044 | Owens-Illinois, Inc.(b) | 47,523 | |||||||||
1,890 | PPG Industries, Inc. | 198,904 | |||||||||
3,707 | Praxair, Inc. | 428,900 | |||||||||
2,385 | Sealed Air Corp. | 45,744 | |||||||||
1,072 | Sherwin-Williams Co. (The) | 128,940 | |||||||||
1,499 | Sigma-Aldrich Corp. | 106,279 | |||||||||
1,023 | Titanium Metals Corp. | 15,110 | |||||||||
1,788 | United States Steel Corp. | 50,654 | |||||||||
1,606 | Vulcan Materials Co. | 68,753 | |||||||||
5,402,641 | |||||||||||
Telecommunication Services—2.9% | |||||||||||
73,674 | AT&T, Inc. | 2,424,612 | |||||||||
7,691 | CenturyLink, Inc. | 296,565 | |||||||||
3,110 | Crown Castle International Corp.(b) | 176,057 | |||||||||
12,352 | Frontier Communications Corp. | 49,902 | |||||||||
3,644 | MetroPCS Communications, Inc.(b) | 26,601 | |||||||||
37,213 | Sprint Nextel Corp.(b) | 92,288 | |||||||||
35,236 | Verizon Communications, Inc. | 1,422,830 | |||||||||
7,284 | Windstream Corp. | 81,872 | |||||||||
4,570,727 | |||||||||||
Utilities—3.5% | |||||||||||
7,986 | AES Corp. (The)(b) | 99,985 | |||||||||
1,456 | AGL Resources, Inc. | 57,410 | |||||||||
3,012 | Ameren Corp. | 98,763 | |||||||||
6,002 | American Electric Power Co., Inc. | 233,118 | |||||||||
5,288 | CenterPoint Energy, Inc. | 106,870 | |||||||||
3,192 | CMS Energy Corp. | 73,384 | |||||||||
3,635 | Consolidated Edison, Inc. | 216,101 | |||||||||
7,077 | Dominion Resources, Inc. | 369,349 | |||||||||
2,103 | DTE Energy Co. | 118,567 | |||||||||
16,587 | Duke Energy Corp. | 355,459 | |||||||||
4,045 | Edison International | 178,020 | |||||||||
2,195 | Entergy Corp. | 143,904 | |||||||||
10,564 | Exelon Corp. | 412,102 |
See Notes to Financial Statements.
51
Schedule of Investments (Continued)
PowerShares S&P 500 BuyWrite Portfolio (PBP)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests(a) (Continued) | |||||||||||
5,195 | FirstEnergy Corp. | $ | 243,230 | ||||||||
969 | Integrys Energy Group, Inc. | 52,946 | |||||||||
5,165 | NextEra Energy, Inc. | 332,368 | |||||||||
3,501 | NiSource, Inc. | 86,300 | |||||||||
3,888 | Northeast Utilities | 142,962 | |||||||||
2,828 | NRG Energy, Inc.(b) | 48,076 | |||||||||
1,292 | ONEOK, Inc. | 110,970 | |||||||||
2,827 | Pepco Holdings, Inc. | 53,487 | |||||||||
5,116 | PG&E Corp. | 226,025 | |||||||||
1,356 | Pinnacle West Capital Corp. | 65,563 | |||||||||
7,192 | PPL Corp. | 196,701 | |||||||||
3,663 | Progress Energy, Inc. | 194,945 | |||||||||
6,283 | Public Service Enterprise Group, Inc. | 195,715 | |||||||||
1,442 | SCANA Corp. | 66,505 | |||||||||
2,988 | Sempra Energy | 193,443 | |||||||||
10,760 | Southern Co. (The) | 494,314 | |||||||||
2,680 | TECO Energy, Inc. | 48,294 | |||||||||
2,861 | Wisconsin Energy Corp. | 105,399 | |||||||||
6,042 | Xcel Energy, Inc. | 163,497 | |||||||||
5,483,772 | |||||||||||
Total Investments (Cost $129,757,723)—101.5% | 156,906,467 | ||||||||||
Liabilities in excess of other assets—(1.5)% | (2,378,547 | ) | |||||||||
Net Assets—100.0% | $ | 154,527,920 |
Investment Abbreviations:
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
(a) A portion of the securities in the portfolio are subject to call options written. In addition, the unrealized appreciation (depreciation) of the call options written was based on Level 1 inputs. See Note 2H and Note 3.
(b) Non-income producing security.
(c) 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 6.
(d) Security not subject to call options written.
See Notes to Financial Statements.
52
Schedule of Investments
PowerShares S&P 500® High Quality Portfolio (SPHQ)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.0% | |||||||||||
Consumer Discretionary—18.3% | |||||||||||
21,620 | Darden Restaurants, Inc. | $ | 1,082,730 | ||||||||
25,375 | Family Dollar Stores, Inc. | 1,714,081 | |||||||||
40,919 | Gap, Inc. (The) | 1,166,192 | |||||||||
17,266 | Genuine Parts Co. | 1,118,491 | |||||||||
11,288 | Harley-Davidson, Inc. | 590,701 | |||||||||
30,036 | Hasbro, Inc. | 1,103,523 | |||||||||
21,333 | Home Depot, Inc. (The) | 1,104,836 | |||||||||
33,358 | Johnson Controls, Inc. | 1,066,455 | |||||||||
17,153 | Lowe's Cos., Inc. | 539,805 | |||||||||
15,920 | Mattel, Inc. | 534,912 | |||||||||
11,207 | McDonald's Corp. | 1,092,122 | |||||||||
28,373 | News Corp., Class A | 556,111 | |||||||||
14,986 | NIKE, Inc., Class B | 1,676,484 | |||||||||
19,761 | Nordstrom, Inc. | 1,103,849 | |||||||||
33,460 | Omnicom Group, Inc. | 1,716,833 | |||||||||
3,160 | Ralph Lauren Corp. | 544,373 | |||||||||
27,608 | Ross Stores, Inc. | 1,700,377 | |||||||||
28,384 | Target Corp. | 1,644,569 | |||||||||
8,183 | Tiffany & Co. | 560,208 | |||||||||
40,940 | TJX Cos., Inc. (The) | 1,707,607 | |||||||||
7,295 | VF Corp. | 1,109,205 | |||||||||
38,953 | Walt Disney Co. (The) | 1,679,264 | |||||||||
22,369 | Yum! Brands, Inc. | 1,626,897 | |||||||||
26,739,625 | |||||||||||
Consumer Staples—20.7% | |||||||||||
17,263 | Altria Group, Inc. | 556,041 | |||||||||
35,340 | Archer-Daniels-Midland Co. | 1,089,532 | |||||||||
13,044 | Brown-Forman Corp., Class B | 1,126,349 | |||||||||
16,460 | Campbell Soup Co. | 556,842 | |||||||||
15,473 | Clorox Co. (The) | 1,084,657 | |||||||||
22,661 | Coca-Cola Co. (The) | 1,729,488 | |||||||||
16,771 | Colgate-Palmolive Co. | 1,659,323 | |||||||||
21,083 | ConAgra Foods, Inc. | 544,363 | |||||||||
6,295 | Costco Wholesale Corp. | 555,030 | |||||||||
37,538 | CVS Caremark Corp. | 1,674,946 | |||||||||
8,633 | Estee Lauder Cos., Inc. (The), Class A | 564,167 | |||||||||
42,114 | General Mills, Inc. | 1,637,813 | |||||||||
58,187 | Hormel Foods Corp. | 1,690,914 | |||||||||
13,712 | J.M. Smucker Co. (The) | 1,091,887 | |||||||||
30,618 | Kellogg Co. | 1,548,352 | |||||||||
14,623 | Kimberly-Clark Corp. | 1,147,467 | |||||||||
14,546 | Kraft Foods, Inc., Class A | 579,949 | |||||||||
11,822 | Lorillard, Inc. | 1,599,398 | |||||||||
30,360 | McCormick & Co., Inc. | 1,697,428 | |||||||||
25,054 | PepsiCo, Inc. | 1,653,564 | |||||||||
24,766 | Procter & Gamble Co. (The) | 1,576,108 | |||||||||
55,610 | Sysco Corp. | 1,607,129 | |||||||||
49,336 | Walgreen Co. | 1,729,720 | |||||||||
27,271 | Wal-Mart Stores, Inc. | 1,606,535 | |||||||||
30,307,002 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
Energy—3.4% | |||||||||||
5,802 | Apache Corp. | $ | 556,644 | ||||||||
16,174 | Chevron Corp. | 1,723,501 | |||||||||
19,651 | Exxon Mobil Corp. | 1,696,667 | |||||||||
9,822 | Hess Corp. | 512,119 | |||||||||
6,135 | Occidental Petroleum Corp. | 559,635 | |||||||||
5,048,566 | |||||||||||
Financials—5.7% | |||||||||||
12,671 | Aflac, Inc. | 570,702 | |||||||||
9,489 | American Express Co. | 571,333 | |||||||||
3,887 | AvalonBay Communities, Inc. REIT | 565,170 | |||||||||
2,747 | BlackRock, Inc. | 526,270 | |||||||||
10,167 | Capital One Financial Corp. | 564,065 | |||||||||
15,606 | Chubb Corp. (The) | 1,140,330 | |||||||||
10,203 | Health Care REIT, Inc. | 578,102 | |||||||||
81,830 | Hudson City Bancorp, Inc. | 577,720 | |||||||||
30,003 | Kimco Realty Corp. REIT | 582,358 | |||||||||
13,035 | Moody's Corp. | 533,783 | |||||||||
8,757 | T. Rowe Price Group, Inc. | 552,698 | |||||||||
22,394 | Torchmark Corp. | 1,090,812 | |||||||||
16,548 | Wells Fargo & Co. | 553,200 | |||||||||
8,406,543 | |||||||||||
Health Care—9.4% | |||||||||||
18,238 | Abbott Laboratories | 1,131,850 | |||||||||
14,468 | AmerisourceBergen Corp. | 538,354 | |||||||||
18,726 | Baxter International, Inc. | 1,037,608 | |||||||||
14,520 | Becton, Dickinson and Co. | 1,139,094 | |||||||||
11,325 | C.R. Bard, Inc. | 1,120,722 | |||||||||
13,784 | DENTSPLY International, Inc. | 565,971 | |||||||||
9,545 | Express Scripts Holding Co.(a) | 532,516 | |||||||||
25,652 | Johnson & Johnson | 1,669,689 | |||||||||
6,013 | McKesson Corp. | 549,648 | |||||||||
28,970 | Medtronic, Inc. | 1,106,654 | |||||||||
24,619 | Mylan, Inc.(a) | 534,478 | |||||||||
9,371 | Quest Diagnostics, Inc. | 540,613 | |||||||||
30,208 | Stryker Corp. | 1,648,451 | |||||||||
28,088 | UnitedHealth Group, Inc. | 1,577,141 | |||||||||
13,692,789 | |||||||||||
Industrials—24.7% | |||||||||||
19,023 | 3M Co. | 1,699,895 | |||||||||
25,412 | C.H. Robinson Worldwide, Inc. | 1,518,113 | |||||||||
15,394 | Caterpillar, Inc. | 1,582,041 | |||||||||
14,124 | Cintas Corp. | 553,237 | |||||||||
49,573 | CSX Corp. | 1,105,974 | |||||||||
4,765 | Cummins, Inc. | 551,930 | |||||||||
30,261 | Danaher Corp. | 1,640,751 | |||||||||
13,674 | Deere & Co. | 1,126,191 | |||||||||
17,838 | Dover Corp. | 1,117,729 | |||||||||
23,182 | Eaton Corp. | 1,116,909 |
See Notes to Financial Statements.
53
Schedule of Investments (Continued)
PowerShares S&P 500® High Quality Portfolio (SPHQ)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
32,542 | Emerson Electric Co. | $ | 1,709,757 | ||||||||
35,183 | Expeditors International of Washington, Inc. | 1,407,320 | |||||||||
22,278 | Fastenal Co. | 1,043,056 | |||||||||
9,350 | Fluor Corp. | 539,962 | |||||||||
23,659 | General Dynamics Corp. | 1,596,982 | |||||||||
28,782 | General Electric Co. | 563,552 | |||||||||
4,336 | Goodrich Corp. | 543,995 | |||||||||
9,357 | Honeywell International, Inc. | 567,596 | |||||||||
19,827 | Illinois Tool Works, Inc. | 1,137,673 | |||||||||
23,617 | L-3 Communications Holdings, Inc. | 1,736,794 | |||||||||
6,083 | Lockheed Martin Corp. | 550,755 | |||||||||
16,109 | Norfolk Southern Corp. | 1,174,829 | |||||||||
17,861 | Northrop Grumman Corp. | 1,130,244 | |||||||||
9,185 | Pall Corp. | 547,518 | |||||||||
13,248 | Parker Hannifin Corp. | 1,161,717 | |||||||||
10,340 | Raytheon Co. | 559,808 | |||||||||
17,644 | Republic Services, Inc. | 482,916 | |||||||||
19,064 | Rockwell Collins, Inc. | 1,065,487 | |||||||||
11,134 | Roper Industries, Inc. | 1,134,555 | |||||||||
9,167 | Snap-On, Inc. | 573,304 | |||||||||
10,058 | Union Pacific Corp. | 1,130,922 | |||||||||
20,427 | United Technologies Corp. | 1,667,660 | |||||||||
7,655 | W.W. Grainger, Inc. | 1,590,862 | |||||||||
15,455 | Waste Management, Inc. | 528,561 | |||||||||
36,158,595 | |||||||||||
Information Technology—4.9% | |||||||||||
19,940 | Automatic Data Processing, Inc. | 1,109,063 | |||||||||
12,232 | Harris Corp. | 557,045 | |||||||||
22,108 | Hewlett-Packard Co. | 547,394 | |||||||||
8,042 | International Business Machines Corp. | 1,665,338 | |||||||||
33,906 | Linear Technology Corp. | 1,109,065 | |||||||||
17,641 | Microsoft Corp. | 564,865 | |||||||||
19,065 | Oracle Corp. | 560,320 | |||||||||
35,244 | Paychex, Inc. | 1,091,859 | |||||||||
7,204,949 | |||||||||||
Materials—7.5% | |||||||||||
12,312 | Air Products & Chemicals, Inc. | 1,052,553 | |||||||||
6,095 | Airgas, Inc. | 558,546 | |||||||||
25,412 | Ball Corp. | 1,061,205 | |||||||||
10,439 | E.I. du Pont de Nemours & Co. | 558,069 | |||||||||
26,463 | Ecolab, Inc. | 1,685,428 | |||||||||
18,733 | International Flavors & Fragrances, Inc. | 1,127,914 | |||||||||
7,048 | Monsanto Co. | 536,917 | |||||||||
14,555 | Praxair, Inc. | 1,684,013 | |||||||||
9,323 | Sherwin-Williams Co. (The) | 1,121,370 | |||||||||
22,971 | Sigma-Aldrich Corp. | 1,628,644 | |||||||||
11,014,659 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
Utilities—5.4% | |||||||||||
28,715 | AGL Resources, Inc. | $ | 1,132,232 | ||||||||
10,800 | Dominion Resources, Inc. | 563,652 | |||||||||
24,881 | Entergy Corp. | 1,631,198 | |||||||||
12,093 | FirstEnergy Corp. | 566,194 | |||||||||
17,513 | NextEra Energy, Inc. | 1,126,962 | |||||||||
6,773 | ONEOK, Inc. | 581,733 | |||||||||
8,717 | Sempra Energy | 564,339 | |||||||||
12,141 | Southern Co. (The) | 557,758 | |||||||||
31,187 | Wisconsin Energy Corp. | 1,148,929 | |||||||||
7,872,997 | |||||||||||
Total Common Stocks and Other Equity Interests (Cost $129,099,866) | 146,445,725 | ||||||||||
Money Market Fund—0.1% | |||||||||||
78,616 | Goldman Sachs Financial Square Prime Obligations - Institutional Share Class (Cost $78,616) | 78,616 | |||||||||
Total Investments (Cost $129,178,482)—100.1% | 146,524,341 | ||||||||||
Liabilities in excess of other assets—(0.1)% | (103,696 | ) | |||||||||
Net Assets—100.0% | $ | 146,420,645 |
Investment Abbreviations:
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
(a) Non-income producing security.
See Notes to Financial Statements.
54
Schedule of Investments
PowerShares Water Resources Portfolio (PHO)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.0% | |||||||||||
Agriculture—0.1% | |||||||||||
114,307 | Cadiz, Inc.(a)(b) | $ | 963,608 | ||||||||
Electronics—17.0% | |||||||||||
458,343 | Badger Meter, Inc.(a) | 16,931,190 | |||||||||
744,082 | Itron, Inc.(b) | 30,358,546 | |||||||||
737,760 | Waters Corp.(b) | 62,052,993 | |||||||||
835,735 | Watts Water Technologies, Inc., Class A | 30,771,763 | |||||||||
140,114,492 | |||||||||||
Engineering & Construction—3.7% | |||||||||||
1,064,290 | Aegion Corp.(b) | 19,423,293 | |||||||||
521,386 | Layne Christensen Co.(b) | 10,714,482 | |||||||||
30,137,775 | |||||||||||
Environmental Control—7.1% | |||||||||||
1,698,803 | Calgon Carbon Corp.(b) | 23,511,434 | |||||||||
1,137,413 | Energy Recovery, Inc.(a)(b) | 2,388,567 | |||||||||
1,201,995 | Tetra Tech, Inc.(b) | 32,093,266 | |||||||||
167,422 | Tri-Tech Holding, Inc. (Cayman Islands)(a)(b) | 996,161 | |||||||||
58,989,428 | |||||||||||
Hand/Machine Tools—2.8% | |||||||||||
458,198 | Franklin Electric Co., Inc. | 22,978,630 | |||||||||
Housewares—4.2% | |||||||||||
487,932 | Toro Co. (The) | 34,867,621 | |||||||||
Machinery-Diversified—12.8% | |||||||||||
557,519 | Flowserve Corp. | 64,075,659 | |||||||||
289,124 | Gorman-Rupp Co. (The) | 8,326,771 | |||||||||
500,882 | Lindsay Corp. | 33,453,909 | |||||||||
105,856,339 | |||||||||||
Metal Fabricate/Hardware—7.5% | |||||||||||
5,603,949 | Mueller Water Products, Inc., Class A | 20,118,177 | |||||||||
229,610 | Northwest Pipe Co.(b) | 4,778,184 | |||||||||
297,575 | Valmont Industries, Inc. | 36,878,470 | |||||||||
61,774,831 | |||||||||||
Miscellaneous Manufacturing—19.2% | |||||||||||
2,649,401 | ITT Corp. | 59,505,546 | |||||||||
1,041,783 | Pall Corp. | 62,100,685 | |||||||||
858,492 | Pentair, Inc.(a) | 37,207,043 | |||||||||
158,813,274 | |||||||||||
Water—25.6% | |||||||||||
432,019 | American States Water Co. | 15,742,772 | |||||||||
1,928,299 | American Water Works Co., Inc. | 66,024,958 | |||||||||
1,488,107 | Aqua America, Inc. | 33,794,910 | |||||||||
966,852 | California Water Service Group | 17,509,690 | |||||||||
439,973 | Cia de Saneamento Basico do Estado de Sao Paulo ADR (Brazil)(a) | 34,828,263 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
493,998 | Consolidated Water Co. Ltd. (Cayman Islands) | $ | 3,541,965 | ||||||||
2,724,733 | Veolia Environnement SA ADR (France)(a) | 39,644,865 | |||||||||
211,087,423 | |||||||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $808,274,810)—100.0% | 825,583,421 | ||||||||||
Investments Purchased with Cash Collateral from Securities on Loan | |||||||||||
Money Market Fund—3.4% | |||||||||||
27,878,405 | Invesco Liquid Assets Portfolio - Institutional Class (Cost $27,878,405)(c)(d) | 27,878,405 | |||||||||
Total Investments (Cost $836,153,215)—103.4% | 853,461,826 | ||||||||||
Liabilities in excess of other assets—(3.4)% | (27,951,543 | ) | |||||||||
Net Assets—100.0% | $ | 825,510,283 |
Investment Abbreviations:
ADR—American Depositary Receipt
Notes to Schedule of Investments:
(a) All or a portion of this security was out on loan at April 30, 2012.
(b) Non-income producing security.
(c) The security and the Fund are advised by wholly owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.
(d) The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower's return of the securities loaned. See Note 2J.
See Notes to Financial Statements.
55
Schedule of Investments
PowerShares WilderHill Clean Energy Portfolio (PBW)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.0% | |||||||||||
Auto Manufacturers—2.1% | |||||||||||
111,969 | Tesla Motors, Inc.(a)(b) | $ | 3,709,533 | ||||||||
Auto Parts & Equipment—4.2% | |||||||||||
269,823 | Amerigon, Inc.(b) | 3,858,469 | |||||||||
155,669 | Fuel Systems Solutions, Inc.(b) | 3,650,438 | |||||||||
7,508,907 | |||||||||||
Chemicals—9.5% | |||||||||||
47,249 | Air Products & Chemicals, Inc. | 4,039,317 | |||||||||
423,032 | Daqo New Energy Corp. ADR (Cayman Islands)(a)(b) | 803,761 | |||||||||
143,876 | OM Group, Inc.(b) | 3,470,289 | |||||||||
67,941 | Sociedad Quimica y Minera de Chile SA ADR (Chile) | 3,960,281 | |||||||||
421,953 | Zoltek Cos., Inc.(b) | 4,654,141 | |||||||||
16,927,789 | |||||||||||
Commercial Services—2.4% | |||||||||||
192,453 | Quanta Services, Inc.(b) | 4,257,060 | |||||||||
Computers—1.7% | |||||||||||
217,849 | Echelon Corp.(b) | 949,822 | |||||||||
216,592 | Maxwell Technologies, Inc.(b) | 2,059,790 | |||||||||
3,009,612 | |||||||||||
Electric—15.2% | |||||||||||
294,472 | Ameresco, Inc., Class A(b) | 3,589,614 | |||||||||
236,950 | Calpine Corp.(b) | 4,442,812 | |||||||||
128,564 | CPFL Energia SA ADR (Brazil) | 3,625,505 | |||||||||
536,660 | EnerNOC, Inc.(b) | 3,225,327 | |||||||||
97,376 | IDACORP, Inc. | 3,967,098 | |||||||||
52,915 | ITC Holdings Corp. | 4,098,796 | |||||||||
206,048 | Ormat Technologies, Inc. | 4,073,569 | |||||||||
27,022,721 | |||||||||||
Electrical Components & Equipment—18.8% | |||||||||||
2,856,949 | A123 Systems, Inc.(a)(b) | 2,914,088 | |||||||||
1,028,984 | American Superconductor Corp.(a)(b) | 4,249,704 | |||||||||
305,790 | Canadian Solar, Inc. (China)(a)(b) | 1,054,975 | |||||||||
1,769,427 | China Ming Yang Wind Power Group Ltd. ADR (Cayman Islands)(a)(b) | 4,105,071 | |||||||||
874,427 | Power-One, Inc.(b) | 3,742,547 | |||||||||
148,348 | PowerSecure International, Inc.(b) | 769,926 | |||||||||
647,311 | SunPower Corp., Class A(a)(b) | 3,631,415 | |||||||||
1,409,229 | Suntech Power Holdings Co. Ltd. ADR (China)(a)(b) | 3,551,257 | |||||||||
116,078 | Universal Display Corp.(b) | 5,220,028 | |||||||||
1,143,539 | Yingli Green Energy Holding Co. Ltd. ADR (China)(a)(b) | 4,162,482 | |||||||||
33,401,493 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
Electronics—3.1% | |||||||||||
91,636 | Itron, Inc.(b) | $ | 3,738,749 | ||||||||
247,732 | SemiLEDs Corp.(b) | 904,222 | |||||||||
644,101 | UQM Technologies, Inc.(a)(b) | 824,449 | |||||||||
5,467,420 | |||||||||||
Energy-Alternate Sources—15.6% | |||||||||||
769,634 | Amyris, Inc.(a)(b) | 2,408,954 | |||||||||
674,563 | Ballard Power Systems, Inc. (Canada)(b) | 964,625 | |||||||||
2,776,584 | FuelCell Energy, Inc.(b) | 3,442,964 | |||||||||
445,785 | Gevo, Inc.(a)(b) | 4,319,657 | |||||||||
2,499,829 | JA Solar Holdings Co. Ltd. ADR (China)(a)(b) | 3,249,778 | |||||||||
347,630 | KiOR, Inc., Class A(a)(b) | 3,406,774 | |||||||||
1,612,088 | Renesola Ltd. ADR (British Virgin Islands)(a)(b) | 2,659,945 | |||||||||
286,385 | Solazyme, Inc.(a)(b) | 3,150,235 | |||||||||
577,919 | Trina Solar Ltd. ADR (Cayman Islands)(a)(b) | 4,195,692 | |||||||||
27,798,624 | |||||||||||
Engineering & Construction—0.5% | |||||||||||
330,010 | Lime Energy Co.(b) | 947,129 | |||||||||
Food—2.2% | |||||||||||
286,958 | Cosan Ltd., Class A (Brazil) | 3,971,499 | |||||||||
Metal Fabricate/Hardware—2.3% | |||||||||||
163,550 | Kaydon Corp. | 4,011,882 | |||||||||
Mining—4.0% | |||||||||||
132,093 | Molycorp, Inc.(a)(b) | 3,574,436 | |||||||||
665,858 | Rare Element Resources Ltd. (Canada)(a)(b) | 3,509,072 | |||||||||
7,083,508 | |||||||||||
Miscellaneous Manufacturing—2.7% | |||||||||||
108,541 | Polypore International, Inc.(b) | 4,054,006 | |||||||||
221,364 | STR Holdings, Inc.(b) | 845,611 | |||||||||
4,899,617 | |||||||||||
Semiconductors—15.7% | |||||||||||
226,492 | Aixtron SE ADR (Germany)(a) | 4,147,069 | |||||||||
120,132 | Amtech Systems, Inc.(b) | 838,521 | |||||||||
134,870 | Cree, Inc.(b) | 4,167,483 | |||||||||
164,676 | First Solar, Inc.(a)(b) | 3,030,038 | |||||||||
511,114 | GT Advanced Technologies, Inc.(b) | 3,327,352 | |||||||||
728,726 | Hanwha SolarOne Co. Ltd. ADR (Cayman Islands)(a)(b) | 816,173 | |||||||||
182,326 | International Rectifier Corp.(b) | 3,980,177 |
See Notes to Financial Statements.
56
Schedule of Investments (Continued)
PowerShares WilderHill Clean Energy Portfolio (PBW)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
1,056,770 | MEMC Electronic Materials, Inc.(b) | $ | 3,793,804 | ||||||||
402,669 | Rubicon Technology, Inc.(a)(b) | 3,805,222 | |||||||||
27,905,839 | |||||||||||
Total Common Stocks and Other Equity Interests (Cost $317,863,623) | 177,922,633 | ||||||||||
Money Market Fund—0.0% | |||||||||||
38,641 | Goldman Sachs Financial Square Prime Obligations - Institutional Share Class (Cost $38,641) | 38,641 | |||||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $317,902,264)—100.0% | 177,961,274 | ||||||||||
Investments Purchased with Cash Collateral from Securities on Loan | |||||||||||
Money Market Fund—29.3% | |||||||||||
52,150,802 | Invesco Liquid Assets Portfolio - Institutional Class (Cost $52,150,802)(c)(d) | 52,150,802 | |||||||||
Total Investments (Cost $370,053,066)—129.3% | 230,112,076 | ||||||||||
Liabilities in excess of other assets—(29.3)% | (52,096,336 | ) | |||||||||
Net Assets—100.0% | $ | 178,015,740 |
Investment Abbreviations:
ADR—American Depositary Receipt
Notes to Schedule of Investments:
(a) All or a portion of this security was out on loan at April 30, 2012.
(b) Non-income producing security.
(c) The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower's return of the securities loaned. See Note 2J.
(d) The security and the Fund are advised by wholly owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.
See Notes to Financial Statements.
57
Schedule of Investments
PowerShares WilderHill Progressive Energy Portfolio (PUW)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.0% | |||||||||||
Agriculture—2.2% | |||||||||||
21,128 | Andersons, Inc. (The) | $ | 1,064,851 | ||||||||
Auto Manufacturers—2.3% | |||||||||||
37,101 | Tata Motors Ltd. ADR (India) | 1,103,755 | |||||||||
Auto Parts & Equipment—5.7% | |||||||||||
78,333 | Exide Technologies(a) | 225,599 | |||||||||
31,601 | Johnson Controls, Inc. | 1,010,284 | |||||||||
26,140 | Tenneco, Inc.(a) | 805,896 | |||||||||
21,896 | Westport Innovations, Inc. (Canada)(a) | 685,345 | |||||||||
2,727,124 | |||||||||||
Building Materials—2.6% | |||||||||||
18,778 | Apogee Enterprises, Inc. | 288,430 | |||||||||
28,250 | Owens Corning(a) | 970,388 | |||||||||
1,258,818 | |||||||||||
Chemicals—6.6% | |||||||||||
31,547 | Methanex Corp. (Canada) | 1,109,192 | |||||||||
19,705 | Rockwood Holdings, Inc.(a) | 1,090,475 | |||||||||
19,906 | Sasol Ltd. ADR (South Africa) | 944,142 | |||||||||
3,143,809 | |||||||||||
Electric—5.9% | |||||||||||
101,438 | Centrais Eletricas Brasileiras SA ADR (Brazil)(a) | 864,252 | |||||||||
40,629 | Companhia Energetica de Minas Gerais ADR (Brazil) | 1,002,317 | |||||||||
47,513 | Enersis SA ADR (Chile) | 963,089 | |||||||||
2,829,658 | |||||||||||
Electrical Components & Equipment—12.6% | |||||||||||
16,526 | Acuity Brands, Inc. | 918,350 | |||||||||
20,648 | Emerson Electric Co. | 1,084,846 | |||||||||
13,178 | Energizer Holdings, Inc.(a) | 939,987 | |||||||||
27,540 | EnerSys(a) | 962,523 | |||||||||
36,939 | General Cable Corp.(a) | 1,087,484 | |||||||||
86,459 | GrafTech International Ltd.(a) | 1,015,028 | |||||||||
6,008,218 | |||||||||||
Electronics—8.4% | |||||||||||
69,476 | Elster Group SE ADR (Germany)(a) | 1,036,582 | |||||||||
28,085 | ESCO Technologies, Inc. | 966,124 | |||||||||
51,350 | Koninklijke Philips Electronics NV (Netherlands) | 1,026,487 | |||||||||
24,377 | Woodward, Inc. | 1,013,839 | |||||||||
4,043,032 | |||||||||||
Energy-Alternate Sources—1.7% | |||||||||||
41,840 | Clean Energy Fuels Corp.(a) | 805,002 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
Engineering & Construction—6.0% | |||||||||||
21,480 | Chicago Bridge & Iron Co. NV (Netherlands) | $ | 954,142 | ||||||||
44,082 | Foster Wheeler AG (Switzerland)(a) | 1,013,886 | |||||||||
78,862 | McDermott International, Inc.(a) | 891,140 | |||||||||
2,859,168 | |||||||||||
Environmental Control—6.5% | |||||||||||
10,046 | ADA-ES, Inc.(a) | 269,986 | |||||||||
58,429 | Covanta Holding Corp. | 937,785 | |||||||||
187,585 | EnergySolutions, Inc.(a) | 789,733 | |||||||||
477,802 | Rentech, Inc.(a) | 1,103,723 | |||||||||
3,101,227 | |||||||||||
Hand/Machine Tools—2.3% | |||||||||||
15,980 | Regal-Beloit Corp. | 1,080,887 | |||||||||
Machinery-Diversified—5.9% | |||||||||||
49,273 | Altra Holdings, Inc.(a) | 900,710 | |||||||||
12,894 | Chart Industries, Inc.(a) | 985,488 | |||||||||
36,853 | Global Power Equipment Group, Inc.(a) | 921,694 | |||||||||
2,807,892 | |||||||||||
Mining—5.7% | |||||||||||
80,636 | Avalon Rare Metals, Inc. (Canada)(a) | 202,396 | |||||||||
45,004 | Cameco Corp. (Canada) | 994,588 | |||||||||
644,126 | Denison Mines Corp. (Canada)(a) | 1,178,751 | |||||||||
94,178 | Quest Rare Minerals Ltd. (Canada)(a) | 187,414 | |||||||||
218,359 | USEC, Inc.(a) | 183,771 | |||||||||
2,746,920 | |||||||||||
Miscellaneous Manufacturing—13.3% | |||||||||||
23,612 | A.O. Smith Corp. | 1,123,931 | |||||||||
16,261 | Cooper Industries PLC (Ireland) | 1,017,451 | |||||||||
20,511 | Eaton Corp. | 988,220 | |||||||||
42,010 | Hexcel Corp.(a) | 1,150,234 | |||||||||
26,997 | LSB Industries, Inc.(a) | 915,738 | |||||||||
16,180 | PMFG, Inc.(a) | 218,592 | |||||||||
10,066 | Siemens AG ADR (Germany) | 934,829 | |||||||||
6,348,995 | |||||||||||
Oil & Gas—6.1% | |||||||||||
41,903 | Chesapeake Energy Corp. | 772,691 | |||||||||
17,376 | Range Resources Corp. | 1,158,284 | |||||||||
32,113 | Southwestern Energy Co.(a) | 1,014,129 | |||||||||
2,945,104 | |||||||||||
Semiconductors—2.2% | |||||||||||
34,462 | Veeco Instruments, Inc.(a) | 1,040,408 | |||||||||
Telecommunications—2.1% | |||||||||||
69,450 | Corning, Inc. | 996,608 |
See Notes to Financial Statements.
58
Schedule of Investments (Continued)
PowerShares WilderHill Progressive Energy Portfolio (PUW)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
Transportation—1.9% | |||||||||||
24,911 | Golar LNG Ltd. (Bermuda) | $ | 921,209 | ||||||||
Total Common Stocks and Other Equity Interests (Cost $45,042,738) | 47,832,685 | ||||||||||
Money Market Fund—0.3% | |||||||||||
156,933 | Goldman Sachs Financial Square Prime Obligations - Institutional Share Class (Cost $156,933) | 156,933 | |||||||||
Total Investments (Cost $45,199,671)—100.3% | 47,989,618 | ||||||||||
Liabilities in excess of other assets—(0.3)% | (130,647 | ) | |||||||||
Net Assets—100.0% | $ | 47,858,971 |
Investment Abbreviations:
ADR—American Depositary Receipt
Notes to Schedule of Investments:
(a) Non-income producing security.
See Notes to Financial Statements.
59
Statements of Assets and Liabilities
April 30, 2012
PowerShares Aerospace & Defense Portfolio (PPA) | PowerShares CleantechTM Portfolio (PZD) | PowerShares DWA Technical LeadersTM Portfolio (PDP) | PowerShares Global Listed Private Equity Portfolio (PSP) | PowerShares Golden Dragon China Portfolio (PGJ) | PowerShares Lux Nanotech Portfolio (PXN) | ||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Unaffiliated investments, at value(a) | $ | 55,081,139 | $ | 100,275,588 | $ | 571,408,466 | $ | 296,627,063 | $ | 245,815,169 | $ | 22,370,574 | |||||||||||||||
Investment of swaps collateral in affiliated money market fund, at value | — | — | — | 2,110,000 | — | — | |||||||||||||||||||||
Investment of securities lending collateral in affiliated money market fund, at value (Note 2J) | — | 9,864,833 | — | — | 57,621,503 | 4,094,775 | |||||||||||||||||||||
Total investments, at value | 55,081,139 | 110,140,421 | 571,408,466 | 298,737,063 | 303,436,672 | 26,465,349 | |||||||||||||||||||||
Cash | — | — | — | 10,143 | 251,767 | — | |||||||||||||||||||||
Foreign currencies, at value | — | 30,298 | — | 270,901 | — | — | |||||||||||||||||||||
Receivables: | |||||||||||||||||||||||||||
Dividends | 44,346 | 128,009 | 204,112 | 229,597 | 4,048 | 4,375 | |||||||||||||||||||||
Expense waivers | 7,638 | — | 6,390 | 149,060 | 32,901 | 3,211 | |||||||||||||||||||||
Investments sold | — | 110,921 | — | 4,420,520 | — | — | |||||||||||||||||||||
Foreign tax reclaims | — | 82,596 | — | 313,613 | — | — | |||||||||||||||||||||
Affiliated securities lending dividends | — | 28,537 | — | — | 156,626 | 28,674 | |||||||||||||||||||||
Unrealized appreciation on swap agreements | — | — | — | 401,548 | — | — | |||||||||||||||||||||
Shares sold | — | — | 8,426,149 | 462,791 | — | — | |||||||||||||||||||||
Other assets | — | — | — | — | — | — | |||||||||||||||||||||
Total Assets | 55,133,123 | 110,520,782 | 580,045,117 | 304,995,236 | 303,882,014 | 26,501,609 | |||||||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||||||
Due to custodian | 1,210 | 3,036 | 3,576 | — | — | 1,038 | |||||||||||||||||||||
Due to broker | — | — | — | 2,131,530 | — | — | |||||||||||||||||||||
Payables: | |||||||||||||||||||||||||||
Collateral upon return of securities loaned | — | 9,864,833 | — | — | 57,621,503 | 4,094,775 | |||||||||||||||||||||
Investments purchased | — | 140,280 | 8,415,102 | 5,760,202 | — | — | |||||||||||||||||||||
Expenses recaptured | — | 347 | — | — | — | — | |||||||||||||||||||||
Shares repurchased | — | — | — | — | — | — | |||||||||||||||||||||
Open written options, at value | — | — | — | — | — | — | |||||||||||||||||||||
Accrued advisory fees | 22,408 | 41,767 | 221,996 | 118,499 | 101,089 | 9,059 | |||||||||||||||||||||
Accrued expenses | 142,969 | 165,040 | 326,855 | 241,212 | 321,456 | 113,944 | |||||||||||||||||||||
Total Liabilities | 166,587 | 10,215,303 | 8,967,529 | 8,251,443 | 58,044,048 | 4,218,816 | |||||||||||||||||||||
NET ASSETS | $ | 54,966,536 | $ | 100,305,479 | $ | 571,077,588 | $ | 296,743,793 | $ | 245,837,966 | $ | 22,282,793 | |||||||||||||||
NET ASSETS CONSIST OF: | |||||||||||||||||||||||||||
Shares of beneficial interest | $ | 91,357,400 | $ | 178,450,714 | $ | 695,110,530 | $ | 401,945,203 | $ | 512,872,321 | $ | 102,751,758 | |||||||||||||||
Undistributed net investment income (loss) | 73,050 | 227,081 | 642,574 | (6,250,767 | ) | 467,272 | 136,663 | ||||||||||||||||||||
Undistributed net realized gain (loss) | (28,031,051 | ) | (75,371,098 | ) | (219,801,836 | ) | (97,127,127 | ) | (223,344,831 | ) | (78,863,711 | ) | |||||||||||||||
Net unrealized appreciation (depreciation) | (8,432,863 | ) | (3,001,218 | ) | 95,126,320 | (1,823,516 | ) | (44,156,796 | ) | (1,741,917 | ) | ||||||||||||||||
Net Assets | $ | 54,966,536 | $ | 100,305,479 | $ | 571,077,588 | $ | 296,743,793 | $ | 245,837,966 | $ | 22,282,793 | |||||||||||||||
Shares outstanding (unlimited amount authorized, $0.01 par value) | 2,750,000 | 4,350,000 | 20,500,000 | 32,200,000 | 11,400,000 | 3,500,000 | |||||||||||||||||||||
Net asset value | $ | 19.99 | $ | 23.06 | $ | 27.86 | $ | 9.22 | $ | 21.56 | $ | 6.37 | |||||||||||||||
Share price | $ | 19.98 | $ | 22.98 | $ | 27.86 | $ | 9.25 | $ | 21.49 | $ | 6.37 | |||||||||||||||
Unaffiliated investments, at cost | $ | 63,514,002 | $ | 103,278,096 | $ | 476,282,146 | $ | 298,848,767 | $ | 289,971,965 | $ | 24,112,491 | |||||||||||||||
Investment of swaps collateral in affiliated money market fund, at cost | $ | — | $ | — | $ | — | $ | 2,110,000 | $ | — | $ | — | |||||||||||||||
Investments of securities lending collateral in affiliated money market fund, at cost | $ | — | $ | 9,864,833 | $ | — | $ | — | $ | 57,621,503 | $ | 4,094,775 | |||||||||||||||
Total investments, at cost | $ | 63,514,002 | $ | 113,142,929 | $ | 476,282,146 | $ | 300,958,767 | $ | 347,593,468 | $ | 28,207,266 | |||||||||||||||
Foreign currencies, at cost | $ | — | $ | 30,133 | $ | — | $ | 270,617 | $ | — | $ | — | |||||||||||||||
Premium received on written options contract | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
(a) Includes securities on loan with an aggregate value of | $ | — | $ | 9,446,243 | $ | — | $ | — | $ | 54,441,393 | $ | 2,632,740 |
See Notes to Financial Statements.
60
PowerShares Morningstar StockInvestor Core Portfolio (PYH) | PowerShares S&P 500 BuyWrite Portfolio (PBP) | PowerShares S&P 500® High Quality Portfolio (SPHQ) | PowerShares Water Resources Portfolio (PHO) | PowerShares WilderHill Clean Energy Portfolio (PBW) | PowerShares WilderHill Progressive Energy Portfolio (PUW) | ||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Unaffiliated investments, at value(a) | $ | 15,454,875 | $ | 156,768,853 | $ | 146,524,341 | $ | 825,583,421 | $ | 177,961,274 | $ | 47,989,618 | |||||||||||||||
Investment of swaps collateral in affiliated money market fund, at value | — | 137,614 | — | — | — | — | |||||||||||||||||||||
Investment of securities lending collateral in affiliated money market fund, at value (Note 2J) | 753,942 | — | — | 27,878,405 | 52,150,802 | — | |||||||||||||||||||||
Total investments, at value | 16,208,817 | 156,906,467 | 146,524,341 | 853,461,826 | 230,112,076 | 47,989,618 | |||||||||||||||||||||
Cash | — | — | — | — | — | — | |||||||||||||||||||||
Foreign currencies, at value | — | — | — | — | — | — | |||||||||||||||||||||
Receivables: | |||||||||||||||||||||||||||
Dividends | 14,021 | 144,582 | 155,990 | 1,372,210 | 144,359 | 45,856 | |||||||||||||||||||||
Expense waivers | 787 | — | 15,806 | — | 51,270 | 2,440 | |||||||||||||||||||||
Investments sold | — | 22,904 | — | 51,586,178 | 1,021,381 | — | |||||||||||||||||||||
Foreign tax reclaims | — | — | — | 34,149 | 24,643 | 8,786 | |||||||||||||||||||||
Affiliated securities lending dividends | 804 | — | — | 6,998 | 429,451 | — | |||||||||||||||||||||
Unrealized appreciation on swap agreements | — | — | — | — | — | — | |||||||||||||||||||||
Shares sold | — | — | — | — | — | — | |||||||||||||||||||||
Other assets | 5,789 | — | — | — | — | — | |||||||||||||||||||||
Total Assets | 16,230,218 | 157,073,953 | 146,696,137 | 906,461,361 | 231,783,180 | 48,046,700 | |||||||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||||||
Due to custodian | 1,037 | 42,074 | 26,376 | 358,433 | 16,444 | 1,173 | |||||||||||||||||||||
Due to broker | — | — | — | — | — | — | |||||||||||||||||||||
Payables: | |||||||||||||||||||||||||||
Collateral upon return of securities loaned | 753,942 | — | — | 27,878,405 | 52,150,802 | — | |||||||||||||||||||||
Investments purchased | — | 55,908 | — | — | — | 49,730 | |||||||||||||||||||||
Expenses recaptured | — | — | — | — | — | — | |||||||||||||||||||||
Shares repurchased | — | — | — | 51,653,089 | 1,021,635 | — | |||||||||||||||||||||
Open written options, at value | — | 2,359,705 | — | — | — | — | |||||||||||||||||||||
Accrued advisory fees | 6,357 | 88,346 | 59,587 | 357,930 | 75,531 | 19,388 | |||||||||||||||||||||
Accrued expenses | 103,187 | — | 189,529 | 703,221 | 503,028 | 117,438 | |||||||||||||||||||||
Total Liabilities | 864,523 | 2,546,033 | 275,492 | 80,951,078 | 53,767,440 | 187,729 | |||||||||||||||||||||
NET ASSETS | $ | 15,365,695 | $ | 154,527,920 | $ | 146,420,645 | $ | 825,510,283 | $ | 178,015,740 | $ | 47,858,971 | |||||||||||||||
NET ASSETS CONSIST OF: | |||||||||||||||||||||||||||
Shares of beneficial interest | $ | 43,368,271 | $ | 149,695,887 | $ | 269,118,303 | $ | 1,345,323,847 | $ | 1,635,030,316 | $ | 76,687,306 | |||||||||||||||
Undistributed net investment income (loss) | 28,009 | 273,524 | 298,686 | 1,101,987 | 2,635,653 | (6,596 | ) | ||||||||||||||||||||
Undistributed net realized gain (loss) | (30,349,314 | ) | (22,368,383 | ) | (140,342,203 | ) | (538,224,162 | ) | (1,319,709,239 | ) | (31,611,686 | ) | |||||||||||||||
Net unrealized appreciation (depreciation) | 2,318,729 | 26,926,892 | 17,345,859 | 17,308,611 | (139,940,990 | ) | 2,789,947 | ||||||||||||||||||||
Net Assets | $ | 15,365,695 | $ | 154,527,920 | $ | 146,420,645 | $ | 825,510,283 | $ | 178,015,740 | $ | 47,858,971 | |||||||||||||||
Shares outstanding (unlimited amount authorized, $0.01 par value) | 700,000 | 7,500,000 | 9,550,000 | 43,950,000 | 35,050,000 | 1,850,000 | |||||||||||||||||||||
Net asset value | $ | 21.95 | $ | 20.60 | $ | 15.33 | $ | 18.78 | $ | 5.08 | $ | 25.87 | |||||||||||||||
Share price | $ | 21.94 | $ | 20.65 | $ | 15.33 | $ | 18.77 | $ | 5.08 | $ | 25.86 | |||||||||||||||
Unaffiliated investments, at cost | $ | 13,136,146 | $ | 129,644,148 | $ | 129,178,482 | $ | 808,274,810 | $ | 317,902,264 | $ | 45,199,671 | |||||||||||||||
Investment of swaps collateral in affiliated money market fund, at cost | $ | — | $ | 113,575 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Investments of securities lending collateral in affiliated money market fund, at cost | $ | 753,942 | $ | — | $ | — | $ | 27,878,405 | $ | 52,150,802 | $ | — | |||||||||||||||
Total investments, at cost | $ | 13,890,088 | $ | 129,757,723 | $ | 129,178,482 | $ | 836,153,215 | $ | 370,053,066 | $ | 45,199,671 | |||||||||||||||
Foreign currencies, at cost | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Premium received on written options contract | $ | — | $ | 2,137,853 | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
(a) Includes securities on loan with an aggregate value of | $ | 729,262 | $ | — | $ | — | $ | 27,007,029 | $ | 45,785,593 | $ | — |
61
Statements of Operations
Year Ended April 30, 2012
PowerShares Aerospace & Defense Portfolio (PPA) | PowerShares CleantechTM Portfolio (PZD) | PowerShares DWA Technical LeadersTM Portfolio (PDP) | PowerShares Global Listed Private Equity Portfolio (PSP) | PowerShares Golden Dragon China Portfolio (PGJ) | PowerShares Lux Nanotech Portfolio (PXN) | ||||||||||||||||||||||
INVESTMENT INCOME: | |||||||||||||||||||||||||||
Unaffiliated dividend income | $ | 1,386,007 | $ | 1,332,906 | $ | 4,433,592 | $ | 12,346,744 | $ | 5,049,659 | $ | 206,357 | |||||||||||||||
Affiliated dividend income (Note 6) | — | — | — | — | — | — | |||||||||||||||||||||
Affiliated securities lending income | — | 724,254 | — | — | 3,499,467 | 215,857 | |||||||||||||||||||||
Foreign withholding tax | (4,064 | ) | (123,057 | ) | (1,083 | ) | (666,338 | ) | (300,430 | ) | (1,388 | ) | |||||||||||||||
Total Income | 1,381,943 | 1,934,103 | 4,432,509 | 11,680,406 | 8,248,696 | 420,826 | |||||||||||||||||||||
EXPENSES: | |||||||||||||||||||||||||||
Advisory fees | 394,671 | 586,815 | 2,341,992 | 1,675,110 | 1,489,990 | 131,684 | |||||||||||||||||||||
Accounting & administration fees | 67,460 | 67,460 | 109,151 | 85,463 | 77,756 | 67,460 | |||||||||||||||||||||
Sub-licensing | 47,361 | 88,022 | 468,395 | 335,022 | 258,718 | 26,337 | �� | ||||||||||||||||||||
Professional fees | 35,610 | 37,161 | 39,109 | 182,956 | 55,416 | 31,503 | |||||||||||||||||||||
Custodian & transfer agent fees | 14,220 | 42,783 | 32,922 | 100,945 | 111,271 | 8,491 | |||||||||||||||||||||
Trustees fees | 7,345 | 8,709 | 17,444 | 15,312 | 13,744 | 5,820 | |||||||||||||||||||||
Recapture (Note 4) | 27,088 | 1,788 | 20,795 | 45,153 | 58,979 | 886 | |||||||||||||||||||||
Other expenses | 7,651 | 34,651 | 29,288 | 99,046 | 50,878 | 13,303 | |||||||||||||||||||||
Total Expenses | 601,406 | 867,389 | 3,059,096 | 2,539,007 | 2,116,752 | 285,484 | |||||||||||||||||||||
Less: Waivers | (80,440 | ) | (75,189 | ) | (6,390 | ) | (175,729 | ) | (70,047 | ) | (101,134 | ) | |||||||||||||||
Net Expenses | 520,966 | 792,200 | 3,052,706 | 2,363,278 | 2,046,705 | 184,350 | |||||||||||||||||||||
Net Investment Income | 860,977 | 1,141,903 | 1,379,803 | 9,317,128 | 6,201,991 | 236,476 | |||||||||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS): | |||||||||||||||||||||||||||
Net realized gain (loss) from: | |||||||||||||||||||||||||||
Investment securities | (4,537,108 | ) | (11,101,309 | ) | (48,786,148 | ) | (35,277,640 | ) | (42,274,444 | ) | (12,937,121 | ) | |||||||||||||||
Swap agreements | — | — | — | (180,860 | ) | — | — | ||||||||||||||||||||
Written options | — | — | — | — | — | — | |||||||||||||||||||||
In-kind redemptions | (9,309,684 | ) | 7,721,982 | 37,448,794 | 12,437,983 | 26,742,791 | 2,506,065 | ||||||||||||||||||||
Foreign currencies | — | (19,426 | ) | — | (317,458 | ) | — | — | |||||||||||||||||||
Net realized gain (loss) | (13,846,792 | ) | (3,398,753 | ) | (11,337,354 | ) | (23,337,975 | ) | (15,531,653 | ) | (10,431,056 | ) | |||||||||||||||
Change in net unrealized appreciation (depreciation) on: | |||||||||||||||||||||||||||
Investment securities | 1,118,071 | (34,029,870 | ) | 24,442,056 | (98,204,542 | ) | (92,384,443 | ) | (2,197,714 | ) | |||||||||||||||||
Swap agreements | — | — | — | 401,548 | — | — | |||||||||||||||||||||
Written options | — | — | — | — | — | — | |||||||||||||||||||||
Foreign currencies | — | (6,590 | ) | — | (26,854 | ) | — | — | |||||||||||||||||||
Net change in unrealized appreciation (depreciation) | 1,118,071 | (34,036,460 | ) | 24,442,056 | (97,829,848 | ) | (92,384,443 | ) | (2,197,714 | ) | |||||||||||||||||
Net realized and unrealized gain (loss) | (12,728,721 | ) | (37,435,213 | ) | 13,104,702 | (121,167,823 | ) | (107,916,096 | ) | (12,628,770 | ) | ||||||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | (11,867,744 | ) | $ | (36,293,310 | ) | $ | 14,484,505 | $ | (111,850,695 | ) | $ | (101,714,105 | ) | $ | (12,392,294 | ) |
See Notes to Financial Statements.
62
PowerShares Morningstar StockInvestor Core Portfolio (PYH) | PowerShares S&P 500 BuyWrite Portfolio (PBP) | PowerShares S&P 500® High Quality Portfolio (SPHQ) | PowerShares Water Resources Portfolio (PHO) | PowerShares WilderHill Clean Energy Portfolio (PBW) | PowerShares WilderHill Progressive Energy Portfolio (PUW) | ||||||||||||||||||||||
INVESTMENT INCOME: | |||||||||||||||||||||||||||
Unaffiliated dividend income | $ | 308,795 | $ | 2,342,880 | $ | 2,959,395 | $ | 13,596,263 | $ | 3,373,874 | $ | 699,712 | |||||||||||||||
Affiliated dividend income (Note 6) | — | 2,065 | — | — | — | — | |||||||||||||||||||||
Affiliated securities lending income | 2,778 | — | — | 98,128 | 7,436,972 | — | |||||||||||||||||||||
Foreign withholding tax | (4,734 | ) | — | — | (488,173 | ) | (72,194 | ) | (33,099 | ) | |||||||||||||||||
Total Income | 306,839 | 2,344,945 | 2,959,395 | 13,206,218 | 10,738,652 | 666,613 | |||||||||||||||||||||
EXPENSES: | |||||||||||||||||||||||||||
Advisory fees | 81,563 | 810,636 | 636,966 | 4,746,253 | 1,459,828 | 262,662 | |||||||||||||||||||||
Accounting & administration fees | 67,460 | — | 67,460 | 231,979 | 83,142 | 67,460 | |||||||||||||||||||||
Sub-licensing | 16,313 | — | 85,762 | 711,938 | 291,965 | 52,533 | |||||||||||||||||||||
Professional fees | 32,680 | — | 35,281 | 96,534 | 62,339 | 31,979 | |||||||||||||||||||||
Custodian & transfer agent fees | 9,607 | — | 14,991 | 71,900 | 185,097 | 10,548 | |||||||||||||||||||||
Trustees fees | 5,597 | — | 8,509 | 33,135 | 14,641 | 6,739 | |||||||||||||||||||||
Recapture (Note 4) | — | — | 33,910 | 11,676 | 84,347 | 779 | |||||||||||||||||||||
Other expenses | 8,352 | — | 14,064 | 18,097 | 40,181 | 19,520 | |||||||||||||||||||||
Total Expenses | 221,572 | 810,636 | 896,943 | 5,921,512 | 2,221,540 | 452,220 | |||||||||||||||||||||
Less: Waivers | (140,010 | ) | — | (259,976 | ) | — | (177,783 | ) | (79,732 | ) | |||||||||||||||||
Net Expenses | 81,562 | 810,636 | 636,967 | 5,921,512 | 2,043,757 | 372,488 | |||||||||||||||||||||
Net Investment Income | 225,277 | 1,534,309 | 2,322,428 | 7,284,706 | 8,694,895 | 294,125 | |||||||||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS): | |||||||||||||||||||||||||||
Net realized gain (loss) from: | |||||||||||||||||||||||||||
Investment securities | (24,774 | ) | (1,028,482 | ) | (1,053,051 | ) | (106,884,997 | ) | (187,020,944 | ) | (6,521,829 | ) | |||||||||||||||
Swap agreements | — | — | — | — | — | — | |||||||||||||||||||||
Written options | — | 492,094 | — | — | — | — | |||||||||||||||||||||
In-kind redemptions | 1,347,029 | 8,079,297 | 11,709,220 | 113,412,066 | 11,188,393 | 6,661,924 | |||||||||||||||||||||
Foreign currencies | — | — | — | — | — | — | |||||||||||||||||||||
Net realized gain (loss) | 1,322,255 | 7,542,909 | 10,656,169 | 6,527,069 | (175,832,551 | ) | 140,095 | ||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on: | |||||||||||||||||||||||||||
Investment securities | (1,345,326 | ) | (5,096,755 | ) | (2,196,049 | ) | (126,361,208 | ) | (72,572,249 | ) | (12,543,208 | ) | |||||||||||||||
Swap agreements | — | — | — | — | — | — | |||||||||||||||||||||
Written options | — | 2,112,389 | — | — | — | — | |||||||||||||||||||||
Foreign currencies | — | — | — | — | — | — | |||||||||||||||||||||
Net change in unrealized appreciation (depreciation) | (1,345,326 | ) | (2,984,366 | ) | (2,196,049 | ) | (126,361,208 | ) | (72,572,249 | ) | (12,543,208 | ) | |||||||||||||||
Net realized and unrealized gain (loss) | (23,071 | ) | 4,558,543 | 8,460,120 | (119,834,139 | ) | (248,404,800 | ) | (12,403,113 | ) | |||||||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | 202,206 | $ | 6,092,852 | $ | 10,782,548 | $ | (112,549,433 | ) | $ | (239,709,905 | ) | $ | (12,108,988 | ) |
63
Statements of Changes in Net Assets
PowerShares Aerospace & Defense Portfolio (PPA) | PowerShares CleantechTM Portfolio (PZD) | PowerShares DWA Technical LeadersTM Portfolio (PDP) | |||||||||||||||||||||||||
Year Ended April 30, 2012 | Year Ended April 30, 2011 | Year Ended April 30, 2012 | Year Ended April 30, 2011 | Year Ended April 30, 2012 | Year Ended April 30, 2011 | ||||||||||||||||||||||
OPERATIONS: | |||||||||||||||||||||||||||
Net investment income (loss) | $ | 860,977 | $ | 1,099,844 | $ | 1,141,903 | $ | 321,843 | $ | 1,379,803 | $ | 482,064 | |||||||||||||||
Net realized gain (loss) | (13,846,792 | ) | (6,517,816 | ) | (3,398,753 | ) | (3,988,325 | ) | (11,337,354 | ) | 34,012,567 | ||||||||||||||||
Net change in unrealized appreciation (depreciation) | 1,118,071 | 12,580,366 | (34,036,460 | ) | 31,413,708 | 24,442,056 | 37,481,504 | ||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | (11,867,744 | ) | 7,162,394 | (36,293,310 | ) | 27,747,226 | 14,484,505 | 71,976,135 | |||||||||||||||||||
Undistributed net investment income (loss) included in the price of units issued and redeemed | 133,587 | (9,800 | ) | (8,054 | ) | 70,849 | 186,322 | 543,029 | |||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||||||||||||
Net investment income | (939,444 | ) | (1,074,351 | ) | (997,420 | ) | (38,868 | ) | (727,024 | ) | (639,994 | ) | |||||||||||||||
Return of capital | — | — | — | — | — | — | |||||||||||||||||||||
(939,444 | ) | (1,074,351 | ) | (997,420 | ) | (38,868 | ) | (727,024 | ) | (639,994 | ) | ||||||||||||||||
SHAREHOLDER TRANSACTIONS: | |||||||||||||||||||||||||||
Proceeds from shares sold | 524,855,293 | 52,743,977 | 5,578,288 | 10,600,376 | 345,983,439 | 476,751,057 | |||||||||||||||||||||
Value of shares repurchased | (565,052,820 | ) | (88,198,319 | ) | (30,512,520 | ) | (35,799,445 | ) | (239,567,471 | ) | (256,554,369 | ) | |||||||||||||||
Net income (loss) equalization | (133,587 | ) | 9,800 | 8,054 | (70,849 | ) | (186,322 | ) | (543,029 | ) | |||||||||||||||||
Net increase (decrease) in net assets resulting from shares transactions | (40,331,114 | ) | (35,444,542 | ) | (24,926,178 | ) | (25,269,918 | ) | 106,229,646 | 219,653,659 | |||||||||||||||||
Increase (Decrease) in Net Assets | (53,004,715 | ) | (29,366,299 | ) | (62,224,962 | ) | 2,509,289 | 120,173,449 | 291,532,829 | ||||||||||||||||||
NET ASSETS: | |||||||||||||||||||||||||||
Beginning of year | 107,971,251 | 137,337,550 | 162,530,441 | 160,021,152 | 450,904,139 | 159,371,310 | |||||||||||||||||||||
End of year | $ | 54,966,536 | $ | 107,971,251 | $ | 100,305,479 | $ | 162,530,441 | $ | 571,077,588 | $ | 450,904,139 | |||||||||||||||
Undistributed net investment income (loss) at end of year | $ | 73,050 | $ | 151,517 | $ | 227,081 | $ | 102,024 | $ | 642,574 | $ | (10,205 | ) | ||||||||||||||
CHANGES IN SHARES OUTSTANDING: | |||||||||||||||||||||||||||
Shares sold | 28,300,000 | 2,650,000 | 200,000 | 400,000 | 13,600,000 | 20,800,000 | |||||||||||||||||||||
Shares repurchased | (30,800,000 | ) | (4,600,000 | ) | (1,250,000 | ) | (1,400,000 | ) | (10,100,000 | ) | (11,300,000 | ) | |||||||||||||||
Shares outstanding, beginning of year | 5,250,000 | 7,200,000 | 5,400,000 | 6,400,000 | 17,000,000 | 7,500,000 | |||||||||||||||||||||
Shares outstanding, end of year | 2,750,000 | 5,250,000 | 4,350,000 | 5,400,000 | 20,500,000 | 17,000,000 |
See Notes to Financial Statements.
64
PowerShares Global Listed Private Equity Portfolio (PSP) | PowerShares Golden Dragon China Portfolio (PGJ) | PowerShares Lux Nanotech Portfolio (PXN) | |||||||||||||||||||||||||
Year Ended April 30, 2012 | Year Ended April 30, 2011 | Year Ended April 30, 2012 | Year Ended April 30, 2011 | Year Ended April 30, 2012 | Year Ended April 30, 2011 | ||||||||||||||||||||||
OPERATIONS: | |||||||||||||||||||||||||||
Net investment income (loss) | $ | 9,317,128 | $ | 7,285,717 | $ | 6,201,991 | $ | 3,542,231 | $ | 236,476 | $ | (19,894 | ) | ||||||||||||||
Net realized gain (loss) | (23,337,975 | ) | 7,933,272 | (15,531,653 | ) | 14,935,438 | (10,431,056 | ) | (7,997,415 | ) | |||||||||||||||||
Net change in unrealized appreciation (depreciation) | (97,829,848 | ) | 71,852,978 | (92,384,443 | ) | 44,598,566 | (2,197,714 | ) | 3,460,627 | ||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | (111,850,695 | ) | 87,071,967 | (101,714,105 | ) | 63,076,235 | (12,392,294 | ) | (4,556,682 | ) | |||||||||||||||||
Undistributed net investment income (loss) included in the price of units issued and redeemed | 5,091,619 | 755,924 | (436,993 | ) | (55,327 | ) | (8,938 | ) | (9,346 | ) | |||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||||||||||||
Net investment income | (23,559,182 | ) | (14,909,521 | ) | (6,163,053 | ) | (3,021,508 | ) | (94,200 | ) | — | ||||||||||||||||
Return of capital | (2,711,317 | ) | — | — | — | — | — | ||||||||||||||||||||
(26,270,499 | ) | (14,909,521 | ) | (6,163,053 | ) | (3,021,508 | ) | (94,200 | ) | — | |||||||||||||||||
SHAREHOLDER TRANSACTIONS: | |||||||||||||||||||||||||||
Proceeds from shares sold | 67,015,149 | 217,018,377 | 13,469,422 | 47,660,723 | 3,678,713 | 2,350,154 | |||||||||||||||||||||
Value of shares repurchased | (125,772,089 | ) | (7,438,354 | ) | (106,046,088 | ) | (116,946,947 | ) | (7,299,902 | ) | (14,693,067 | ) | |||||||||||||||
Net income (loss) equalization | (5,091,619 | ) | (755,924 | ) | 436,993 | 55,327 | 8,938 | 9,346 | |||||||||||||||||||
Net increase (decrease) in net assets resulting from shares transactions | (63,848,559 | ) | 208,824,099 | (92,139,673 | ) | (69,230,897 | ) | (3,612,251 | ) | (12,333,567 | ) | ||||||||||||||||
Increase (Decrease) in Net Assets | (196,878,134 | ) | 281,742,469 | (200,453,824 | ) | (9,231,497 | ) | (16,107,683 | ) | (16,899,595 | ) | ||||||||||||||||
NET ASSETS: | |||||||||||||||||||||||||||
Beginning of year | 493,621,927 | 211,879,458 | 446,291,790 | 455,523,287 | 38,390,476 | 55,290,071 | |||||||||||||||||||||
End of year | $ | 296,743,793 | $ | 493,621,927 | $ | 245,837,966 | $ | 446,291,790 | $ | 22,282,793 | $ | 38,390,476 | |||||||||||||||
Undistributed net investment income (loss) at end of year | $ | (6,250,767 | ) | $ | (7,350,386 | ) | $ | 467,272 | $ | 293,268 | $ | 136,663 | $ | (5,613 | ) | ||||||||||||
CHANGES IN SHARES OUTSTANDING: | |||||||||||||||||||||||||||
Shares sold | 6,650,000 | 20,150,000 | 650,000 | 1,750,000 | 450,000 | 250,000 | |||||||||||||||||||||
Shares repurchased | (15,000,000 | ) | (700,000 | ) | (4,650,000 | ) | (4,550,000 | ) | (950,000 | ) | (1,600,000 | ) | |||||||||||||||
Shares outstanding, beginning of year | 40,550,000 | 21,100,000 | 15,400,000 | 18,200,000 | 4,000,000 | 5,350,000 | |||||||||||||||||||||
Shares outstanding, end of year | 32,200,000 | 40,550,000 | 11,400,000 | 15,400,000 | 3,500,000 | 4,000,000 |
65
Statements of Changes in Net Assets (Continued)
PowerShares Morningstar StockInvestor Core Portfolio (PYH) | PowerShares S&P 500 BuyWrite Portfolio (PBP) | PowerShares S&P 500® High Quality Portfolio (SPHQ) | |||||||||||||||||||||||||
Year Ended April 30, 2012 | Year Ended April 30, 2011 | Year Ended April 30, 2012 | Year Ended April 30, 2011 | Year Ended April 30, 2012 | Year Ended April 30, 2011 | ||||||||||||||||||||||
OPERATIONS: | |||||||||||||||||||||||||||
Net investment income (loss) | $ | 225,277 | $ | 197,681 | $ | 1,534,309 | $ | 2,033,747 | $ | 2,322,428 | $ | 1,327,857 | |||||||||||||||
Net realized gain (loss) | 1,322,255 | (190,672 | ) | 7,542,909 | 11,948,255 | 10,656,169 | 7,551,440 | ||||||||||||||||||||
Net change in unrealized appreciation (depreciation) | (1,345,326 | ) | 1,581,696 | (2,984,366 | ) | (3,195,930 | ) | (2,196,049 | ) | 10,923,267 | |||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 202,206 | 1,588,705 | 6,092,852 | 10,786,072 | 10,782,548 | 19,802,564 | |||||||||||||||||||||
Undistributed net investment income (loss) included in the price of units issued and redeemed | (8,663 | ) | (482 | ) | (5,231,782 | ) | (71,222 | ) | 67,229 | 141,061 | |||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||||||||||||
Net investment income | (267,336 | ) | (132,812 | ) | (9,784,068 | ) | (1,906,422 | ) | (2,688,575 | ) | (663,992 | ) | |||||||||||||||
Net realized gains | — | — | (499,499 | ) | (9,159,750 | ) | — | — | |||||||||||||||||||
Total distributions to shareholders | (267,336 | ) | (132,812 | ) | (10,283,567 | ) | (11,066,172 | ) | (2,688,575 | ) | (663,992 | ) | |||||||||||||||
SHAREHOLDER TRANSACTIONS: | |||||||||||||||||||||||||||
Proceeds from shares sold | 3,178,199 | 17,682,163 | 67,588,389 | 8,285,348 | 78,565,916 | 103,697,810 | |||||||||||||||||||||
Value of shares repurchased | (7,563,848 | ) | (18,611,672 | ) | (29,381,078 | ) | (55,333,752 | ) | (52,933,980 | ) | (77,887,161 | ) | |||||||||||||||
Net income (loss) equalization | 8,663 | 482 | 5,231,782 | 71,222 | (67,229 | ) | (141,061 | ) | |||||||||||||||||||
Net increase (decrease) in net assets resulting from shares transactions | (4,376,986 | ) | (929,027 | ) | 43,439,093 | (46,977,182 | ) | 25,564,707 | 25,669,588 | ||||||||||||||||||
Increase (Decrease) in Net Assets | (4,450,779 | ) | 526,384 | 34,016,596 | (47,328,504 | ) | 33,725,909 | 44,949,221 | |||||||||||||||||||
NET ASSETS: | |||||||||||||||||||||||||||
Beginning of year | 19,816,474 | 19,290,090 | 120,511,324 | 167,839,828 | 112,694,736 | 67,745,515 | |||||||||||||||||||||
End of year | $ | 15,365,695 | $ | 19,816,474 | $ | 154,527,920 | $ | 120,511,324 | $ | 146,420,645 | $ | 112,694,736 | |||||||||||||||
Undistributed net investment income (loss) at end of year | $ | 28,009 | $ | 80,443 | $ | 273,524 | $ | 270,459 | $ | 298,686 | $ | 664,833 | |||||||||||||||
CHANGES IN SHARES OUTSTANDING: | |||||||||||||||||||||||||||
Shares sold | 150,000 | 950,000 | 3,350,000 | 400,000 | 5,600,000 | 8,650,000 | |||||||||||||||||||||
Shares repurchased | (350,000 | ) | (1,000,000 | ) | (1,450,000 | ) | (2,600,000 | ) | (3,750,000 | ) | (6,500,000 | ) | |||||||||||||||
Shares outstanding, beginning of year | 900,000 | 950,000 | 5,600,000 | 7,800,000 | 7,700,000 | 5,550,000 | |||||||||||||||||||||
Shares outstanding, end of year | 700,000 | 900,000 | 7,500,000 | 5,600,000 | 9,550,000 | 7,700,000 |
See Notes to Financial Statements.
66
PowerShares Water Resources Portfolio (PHO) | PowerShares WilderHill Clean Energy Portfolio (PBW) | PowerShares WilderHill Progressive Energy Portfolio (PUW) | |||||||||||||||||||||||||
Year Ended April 30, 2012 | Year Ended April 30, 2011 | Year Ended April 30, 2012 | Year Ended April 30, 2011 | Year Ended April 30, 2012 | Year Ended April 30, 2011 | ||||||||||||||||||||||
OPERATIONS: | |||||||||||||||||||||||||||
Net investment income (loss) | $ | 7,284,706 | $ | 7,211,333 | $ | 8,694,895 | $ | (1,482,664 | ) | $ | 294,125 | $ | 220,688 | ||||||||||||||
Net realized gain (loss) | 6,527,069 | 21,884,199 | (175,832,551 | ) | (68,689,809 | ) | 140,095 | 4,447,617 | |||||||||||||||||||
Net change in unrealized appreciation (depreciation) | (126,361,208 | ) | 94,753,726 | (72,572,249 | ) | 74,473,012 | (12,543,208 | ) | 8,016,614 | ||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | (112,549,433 | ) | 123,849,258 | (239,709,905 | ) | 4,300,539 | (12,108,988 | ) | 12,684,919 | ||||||||||||||||||
Undistributed net investment income (loss) included in the price of units issued and redeemed | (148,866 | ) | (473,043 | ) | (47,608 | ) | 327,754 | 22,453 | (7,103 | ) | |||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||||||||||||
Net investment income | (7,241,759 | ) | (6,570,710 | ) | (6,029,472 | ) | — | (512,778 | ) | (319,968 | ) | ||||||||||||||||
Net realized gains | — | — | — | — | — | — | |||||||||||||||||||||
Total distributions to shareholders | (7,241,759 | ) | (6,570,710 | ) | (6,029,472 | ) | — | (512,778 | ) | (319,968 | ) | ||||||||||||||||
SHAREHOLDER TRANSACTIONS: | |||||||||||||||||||||||||||
Proceeds from shares sold | 301,435,959 | 114,470,396 | 41,977,234 | 146,699,587 | 7,792,210 | 18,569,744 | |||||||||||||||||||||
Value of shares repurchased | (616,782,513 | ) | (306,134,214 | ) | (159,694,207 | ) | (267,013,644 | ) | (22,486,730 | ) | (16,210,652 | ) | |||||||||||||||
Net income (loss) equalization | 148,866 | 473,043 | 47,608 | (327,754 | ) | (22,453 | ) | 7,103 | |||||||||||||||||||
Net increase (decrease) in net assets resulting from shares transactions | (315,197,688 | ) | (191,190,775 | ) | (117,669,365 | ) | (120,641,811 | ) | (14,716,973 | ) | 2,366,195 | ||||||||||||||||
Increase (Decrease) in Net Assets | (435,137,746 | ) | (74,385,270 | ) | (363,456,350 | ) | (116,013,518 | ) | (27,316,286 | ) | 14,724,043 | ||||||||||||||||
NET ASSETS: | |||||||||||||||||||||||||||
Beginning of year | 1,260,648,029 | 1,335,033,299 | 541,472,090 | 657,485,608 | 75,175,257 | 60,451,214 | |||||||||||||||||||||
End of year | $ | 825,510,283 | $ | 1,260,648,029 | $ | 178,015,740 | $ | 541,472,090 | $ | 47,858,971 | $ | 75,175,257 | |||||||||||||||
Undistributed net investment income (loss) at end of year | $ | 1,101,987 | $ | 1,059,040 | $ | 2,635,653 | $ | (29,770 | ) | $ | (6,596 | ) | $ | 19,901 | |||||||||||||
CHANGES IN SHARES OUTSTANDING: | |||||||||||||||||||||||||||
Shares sold | 16,550,000 | 6,200,000 | 7,250,000 | 15,200,000 | 300,000 | 650,000 | |||||||||||||||||||||
Shares repurchased | (34,850,000 | ) | (17,900,000 | ) | (24,500,000 | ) | (27,900,000 | ) | (900,000 | ) | (600,000 | ) | |||||||||||||||
Shares outstanding, beginning of year | 62,250,000 | 73,950,000 | 52,300,000 | 65,000,000 | 2,450,000 | 2,400,000 | |||||||||||||||||||||
Shares outstanding, end of year | 43,950,000 | 62,250,000 | 35,050,000 | 52,300,000 | 1,850,000 | 2,450,000 |
67
Financial Highlights
PowerShares Aerospace & Defense Portfolio (PPA)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of year | $ | 20.57 | $ | 19.07 | $ | 13.38 | $ | 20.93 | $ | 20.19 | |||||||||||||
Net investment income(a) | 0.21 | 0.18 | 0.17 | 0.16 | 0.06 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.60 | ) | 1.49 | 5.73 | (7.56 | ) | 0.72 | ||||||||||||||||
Total from investment operations | (0.39 | ) | 1.67 | 5.90 | (7.40 | ) | 0.78 | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.19 | ) | (0.17 | ) | (0.21 | ) | (0.15 | ) | (0.04 | ) | |||||||||||||
Net asset value at end of year | $ | 19.99 | $ | 20.57 | $ | 19.07 | $ | 13.38 | $ | 20.93 | |||||||||||||
Share price at end of year(b) | $ | 19.98 | $ | 20.57 | $ | 19.07 | $ | 13.37 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN(c) | (1.82 | )% | 8.91 | % | 44.36 | % | (35.46 | )% | 3.86 | % | |||||||||||||
SHARE PRICE TOTAL RETURN(c) | (1.87 | )% | 8.91 | % | 44.47 | % | (35.48 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 54,967 | $ | 107,971 | $ | 137,338 | $ | 116,429 | $ | 257,495 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.66 | % | 0.66 | % | 0.66 | % | 0.66 | % | 0.66 | % | |||||||||||||
Expenses, prior to Waivers | 0.76 | % | 0.73 | % | 0.69 | % | 0.67 | % | 0.64 | % | |||||||||||||
Net investment income, after Waivers | 1.09 | % | 0.99 | % | 1.08 | % | 1.01 | % | 0.27 | % | |||||||||||||
Portfolio turnover rate(d) | 25 | % | 12 | % | 17 | % | 9 | % | 13 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(e) | $ | 0.03 | $ | (0.00 | )(f) | $ | (0.01 | ) | $ | (0.01 | ) | $ | 0.00 | (f) |
PowerShares CleantechTM Portfolio (PZD)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of year | $ | 30.10 | $ | 25.00 | $ | 19.25 | $ | 33.63 | $ | 27.08 | |||||||||||||
Net investment income (loss)(a) | 0.24 | 0.06 | 0.03 | (0.00 | )(f) | (0.10 | ) | ||||||||||||||||
Net realized and unrealized gain (loss) on investments | (7.07 | ) | 5.05 | 5.77 | (14.38 | ) | 6.65 | ||||||||||||||||
Total from investment operations | (6.83 | ) | 5.11 | 5.80 | (14.38 | ) | 6.55 | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.21 | ) | (0.01 | ) | (0.04 | ) | — | — | |||||||||||||||
Return of capital | — | — | (0.01 | ) | — | — | |||||||||||||||||
Total distributions | (0.21 | ) | (0.01 | ) | (0.05 | ) | — | — | |||||||||||||||
Net asset value at end of year | $ | 23.06 | $ | 30.10 | $ | 25.00 | $ | 19.25 | $ | 33.63 | |||||||||||||
Share price at end of year(b) | $ | 22.98 | $ | 30.08 | $ | 24.80 | $ | 19.35 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN(c) | (22.65 | )% | 20.43 | % | 30.16 | % | (42.76 | )% | 24.19 | % | |||||||||||||
SHARE PRICE TOTAL RETURN(c) | (22.87 | )% | 21.32 | % | 28.45 | % | (42.45 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 100,305 | $ | 162,530 | $ | 160,021 | $ | 111,674 | $ | 114,336 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.67 | % | 0.67 | % | 0.67 | % | 0.67 | % | 0.69 | % | |||||||||||||
Expenses, prior to Waivers | 0.74 | % | 0.74 | % | 0.71 | % | 0.73 | % | 0.77 | % | |||||||||||||
Net investment income (loss), after Waivers | 0.97 | % | 0.22 | % | 0.11 | % | (0.01 | )% | (0.31 | )% | |||||||||||||
Portfolio turnover rate(d) | 27 | % | 24 | % | 31 | % | 72 | % | 23 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(e) | $ | (0.00 | )(f) | $ | 0.01 | $ | (0.01 | ) | $ | (0.05 | ) | $ | (0.09 | ) |
(a) Based on average shares outstanding.
(b) The mean between the last bid and ask prices.
(c) 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.
(d) Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
(e) The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(f) Amount represents less than $0.005.
See Notes to Financial Statements.
68
Financial Highlights (Continued)
PowerShares DWA Technical LeadersTM Portfolio (PDP)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of year | $ | 26.52 | $ | 21.25 | $ | 14.14 | $ | 25.97 | $ | 25.58 | |||||||||||||
Net investment income (loss)(a) | 0.07 | 0.04 | 0.06 | 0.07 | (0.02 | ) | |||||||||||||||||
Net realized and unrealized gain (loss) on investments | 1.31 | 5.29 | 7.15 | (11.86 | ) | 0.43 | |||||||||||||||||
Total from investment operations | 1.38 | 5.33 | 7.21 | (11.79 | ) | 0.41 | |||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.04 | ) | (0.06 | ) | (0.10 | ) | (0.04 | ) | (0.01 | ) | |||||||||||||
Return of capital | — | — | — | — | (0.01 | ) | |||||||||||||||||
Total distributions | (0.04 | ) | (0.06 | ) | (0.10 | ) | (0.04 | ) | (0.02 | ) | |||||||||||||
Net asset value at end of year | $ | 27.86 | $ | 26.52 | $ | 21.25 | $ | 14.14 | $ | 25.97 | |||||||||||||
Share price at end of year(b) | $ | 27.86 | $ | 26.54 | $ | 21.24 | $ | 14.13 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN(c) | 5.22 | % | 25.11 | % | 51.28 | % | (45.40 | )% | 1.62 | % | |||||||||||||
SHARE PRICE TOTAL RETURN(c) | 5.15 | % | 25.26 | % | 51.31 | % | (45.49 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 571,078 | $ | 450,904 | $ | 159,371 | $ | 138,549 | $ | 363,514 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.65 | % | 0.70 | % | 0.70 | % | 0.69 | % | 0.71 | % | |||||||||||||
Expenses, prior to Waivers | 0.65 | % | 0.71 | % | 0.73 | % | 0.68 | % | 0.68 | % | |||||||||||||
Net investment income (loss), after Waivers | 0.29 | % | 0.19 | % | 0.35 | % | 0.38 | % | (0.07 | )% | |||||||||||||
Portfolio turnover rate(d) | 96 | % | 42 | % | 52 | % | 87 | % | 83 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(e) | $ | 0.01 | $ | 0.05 | $ | (0.02 | ) | $ | (0.03 | ) | $ | 0.07 |
PowerShares Global Listed Private Equity Portfolio (PSP)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of year | $ | 12.17 | $ | 10.04 | $ | 6.72 | $ | 20.27 | $ | 27.79 | |||||||||||||
Net investment income(a) | 0.26 | 0.26 | 0.33 | 0.87 | 1.22 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (2.58 | ) | 2.41 | 3.27 | (13.55 | ) | (7.63 | ) | |||||||||||||||
Total from investment operations | (2.32 | ) | 2.67 | 3.60 | (12.68 | ) | (6.41 | ) | |||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.56 | ) | (0.54 | ) | (0.28 | ) | (0.87 | ) | (1.11 | ) | |||||||||||||
Return of capital | (0.07 | ) | — | — | — | — | |||||||||||||||||
Total distributions | (0.63 | ) | (0.54 | ) | (0.28 | ) | (0.87 | ) | (1.11 | ) | |||||||||||||
Net asset value at end of year | $ | 9.22 | $ | 12.17 | $ | 10.04 | $ | 6.72 | $ | 20.27 | |||||||||||||
Share price at end of year(b) | $ | 9.25 | $ | 12.25 | $ | 10.06 | $ | 6.71 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN(c) | (19.51 | )% | 27.93 | % | 54.20 | % | (64.23 | )% | (23.50 | )% | |||||||||||||
SHARE PRICE TOTAL RETURN(c) | (19.80 | )% | 28.48 | % | 54.70 | % | (64.29 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 296,744 | $ | 493,622 | $ | 211,879 | $ | 60,476 | $ | 103,379 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers(f) | 0.71 | % | 0.70 | % | 0.70 | % | 0.70 | % | 0.71 | % | |||||||||||||
Expenses, prior to Waivers(f) | 0.76 | % | 0.73 | % | 0.72 | % | 0.78 | % | 0.72 | % | |||||||||||||
Net investment income, after Waivers | 2.79 | % | 2.50 | % | 3.66 | %(g) | 7.75 | % | 5.04 | % | |||||||||||||
Portfolio turnover rate(d) | 88 | % | 112 | % | 121 | % | 74 | % | 30 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(e) | $ | 0.14 | $ | 0.03 | $ | 0.24 | $ | 0.21 | $ | (0.03 | ) |
(a) Based on average shares outstanding.
(b) The mean between the last bid and ask prices.
(c) 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.
(d) Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
(e) The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(f) In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Fund invests. Estimated investment company expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the investment companies and are deducted from the value of the funds that the Fund invests in. The effect of the investment company expenses that you bear indirectly is included in the Fund's total return.
(g) 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.
69
Financial Highlights (Continued)
PowerShares Golden Dragon China Portfolio (PGJ)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of year | $ | 28.98 | $ | 25.03 | $ | 17.47 | $ | 28.88 | $ | 21.43 | |||||||||||||
Net investment income(a) | 0.48 | 0.21 | 0.13 | 0.20 | 0.12 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (7.43 | ) | 3.92 | 7.63 | (11.44 | ) | 7.54 | ||||||||||||||||
Total from investment operations | (6.95 | ) | 4.13 | 7.76 | (11.24 | ) | 7.66 | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.47 | ) | (0.18 | ) | (0.17 | ) | (0.17 | ) | (0.20 | ) | |||||||||||||
Return of capital | — | — | (0.03 | ) | — | (0.01 | ) | ||||||||||||||||
Total distributions | (0.47 | ) | (0.18 | ) | (0.20 | ) | (0.17 | ) | (0.21 | ) | |||||||||||||
Net asset value at end of year | $ | 21.56 | $ | 28.98 | $ | 25.03 | $ | 17.47 | $ | 28.88 | |||||||||||||
Share price at end of year(b) | $ | 21.49 | $ | 28.87 | $ | 25.04 | $ | 17.48 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN(c) | (23.98 | )% | 16.60 | % | 44.51 | % | (39.06 | )% | 35.87 | % | |||||||||||||
SHARE PRICE TOTAL RETURN(c) | (23.93 | )% | 16.11 | % | 44.49 | % | (38.92 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 245,838 | $ | 446,292 | $ | 455,523 | $ | 279,490 | $ | 528,483 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.69 | % | 0.70 | % | 0.70 | % | 0.69 | % | 0.69 | % | |||||||||||||
Expenses, prior to Waivers | 0.71 | % | 0.72 | % | 0.71 | % | 0.71 | % | 0.66 | % | |||||||||||||
Net investment income, after Waivers | 2.08 | % | 0.82 | % | 0.56 | % | 1.06 | % | 0.42 | % | |||||||||||||
Portfolio turnover rate(d) | 23 | % | 15 | % | 35 | % | 20 | % | 15 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(e) | $ | (0.03 | ) | $ | (0.00 | )(f) | $ | 0.02 | $ | (0.03 | ) | $ | 0.03 |
PowerShares Lux Nanotech Portfolio (PXN)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of year | $ | 9.60 | $ | 10.33 | $ | 7.59 | $ | 14.07 | $ | 17.48 | |||||||||||||
Net investment income (loss)(a) | 0.06 | (0.00 | )(f) | (0.00 | )(f) | 0.02 | (0.03 | ) | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (3.26 | ) | (0.73 | ) | 2.76 | (6.50 | ) | (3.38 | ) | ||||||||||||||
Total from investment operations | (3.20 | ) | (0.73 | ) | 2.76 | (6.48 | ) | (3.41 | ) | ||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.03 | ) | — | (0.02 | ) | — | — | ||||||||||||||||
Return of capital | — | — | 0.00 | (f) | — | — | |||||||||||||||||
Total distributions | (0.03 | ) | — | (0.02 | ) | — | — | ||||||||||||||||
Net asset value at end of year | $ | 6.37 | $ | 9.60 | $ | 10.33 | $ | 7.59 | $ | 14.07 | |||||||||||||
Share price at end of year(b) | $ | 6.37 | $ | 9.70 | $ | 10.32 | $ | 7.60 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN(c) | (33.40 | )% | (7.07 | )% | 36.39 | % | (46.06 | )% | (19.51 | )% | |||||||||||||
SHARE PRICE TOTAL RETURN(c) | (34.09 | )% | (6.01 | )% | 36.08 | % | (45.79 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 22,283 | $ | 38,390 | $ | 55,290 | $ | 39,484 | $ | 84,428 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers(g) | 0.70 | % | 0.70 | % | 0.70 | % | 0.70 | % | 0.70 | % | |||||||||||||
Expenses, prior to Waivers(g) | 1.08 | % | 0.95 | % | 0.85 | % | 0.89 | % | 0.73 | % | |||||||||||||
Net investment income (loss), after Waivers | 0.90 | % | (0.04 | )% | (0.04 | )% | 0.17 | % | (0.17 | )% | |||||||||||||
Portfolio turnover rate(d) | 55 | % | 58 | % | 57 | % | 50 | % | 42 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(e) | $ | (0.00 | )(f) | $ | (0.00 | )(f) | $ | 0.00 | (f) | $ | 0.00 | (f) | $ | 0.01 |
(a) Based on average shares outstanding.
(b) The mean between the last bid and ask prices.
(c) 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.
(d) Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
(e) The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(f) Amount represents less than $0.005.
(g) In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Fund invests. Estimated investment company expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the investment companies and are deducted from the value of the funds that the Fund invests in. The effect of the investment company expenses that you bear indirectly is included in the Fund's total return.
See Notes to Financial Statements.
70
Financial Highlights (Continued)
PowerShares Morningstar StockInvestor Core Portfolio (PYH)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of year | $ | 22.02 | $ | 20.31 | $ | 15.59 | $ | 27.90 | $ | 28.04 | |||||||||||||
Net investment income(a) | 0.28 | 0.22 | 0.05 | 0.10 | 0.01 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.02 | ) | 1.64 | 4.76 | (12.35 | ) | (0.14 | ) | |||||||||||||||
Total from investment operations | 0.26 | 1.86 | 4.81 | (12.25 | ) | (0.13 | ) | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.33 | ) | (0.15 | ) | (0.09 | ) | (0.06 | ) | (0.01 | ) | |||||||||||||
Return of capital | — | — | — | — | 0.00 | (g) | |||||||||||||||||
Total distributions | (0.33 | ) | (0.15 | ) | (0.09 | ) | (0.06 | ) | (0.01 | ) | |||||||||||||
Net asset value at end of year | $ | 21.95 | $ | 22.02 | $ | 20.31 | $ | 15.59 | $ | 27.90 | |||||||||||||
Share price at end of year(b) | $ | 21.94 | $ | 22.01 | $ | 20.31 | $ | 15.58 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN(c) | 1.32 | % | 9.25 | % | 31.03 | % | (43.93 | )% | (0.45 | )% | |||||||||||||
SHARE PRICE TOTAL RETURN(c) | 1.32 | % | 9.20 | % | 31.11 | % | (43.93 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 15,366 | $ | 19,816 | $ | 19,290 | $ | 26,508 | $ | 41,850 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers(d) | 0.50 | % | 0.53 | % | 0.70 | % | 0.70 | % | 0.73 | % | |||||||||||||
Expenses, prior to Waivers(d) | 1.36 | % | 1.81 | % | 1.09 | % | 0.94 | % | 0.95 | % | |||||||||||||
Net investment income, after Waivers | 1.38 | % | 1.11 | % | 0.27 | % | 0.47 | % | 0.03 | % | |||||||||||||
Portfolio turnover rate(e) | 3 | % | 91 | % | 127 | % | 113 | % | 77 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(f) | $ | (0.01 | ) | $ | (0.00 | )(g) | $ | (0.00 | )(g) | $ | (0.00 | )(g) | $ | 0.00 | (g) |
PowerShares S&P 500 BuyWrite Portfolio (PBP)
Year Ended April 30, | For the Period December 19, 2007(h) Through | ||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | April 30, 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 21.52 | $ | 21.52 | $ | 17.54 | $ | 25.00 | $ | 24.97 | |||||||||||||
Net investment income(a) | 0.29 | 0.29 | 0.27 | 0.38 | 0.09 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 1.00 | 1.34 | 4.00 | (7.38 | ) | (0.01 | ) | ||||||||||||||||
Total from investment operations | 1.29 | 1.63 | 4.27 | (7.00 | ) | 0.08 | |||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (2.10 | ) | (0.27 | ) | (0.29 | ) | (0.46 | ) | (0.05 | ) | |||||||||||||
Net realized gains | (0.11 | ) | (1.36 | ) | — | — | — | ||||||||||||||||
Total distributions | (2.21 | ) | (1.63 | ) | (0.29 | ) | (0.46 | ) | (0.05 | ) | |||||||||||||
Net asset value at end of period | $ | 20.60 | $ | 21.52 | $ | 21.52 | $ | 17.54 | $ | 25.00 | |||||||||||||
Share price at end of period(b) | $ | 20.65 | $ | 21.52 | $ | 21.52 | $ | 17.59 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN(c) | 6.74 | % | 8.11 | % | 24.48 | % | (28.26 | )% | 0.33 | %(i) | |||||||||||||
SHARE PRICE TOTAL RETURN(c) | 7.02 | % | 8.09 | % | 24.11 | % | (28.16 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 154,528 | $ | 120,511 | $ | 167,840 | $ | 84,211 | $ | 7,500 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses | 0.75 | % | 0.75 | % | 0.75 | % | 0.75 | % | 0.75 | %(j) | |||||||||||||
Net investment income | 1.42 | % | 1.37 | % | 1.35 | % | 2.09 | % | 1.12 | %(j) | |||||||||||||
Portfolio turnover rate(e) | 58 | % | 61 | % | 51 | % | 83 | % | 10 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(f) | $ | (0.97 | ) | $ | (0.01 | ) | $ | (0.00 | )(g) | $ | (0.05 | ) | $ | 0.09 |
(a) Based on average shares outstanding.
(b) The mean between the last bid and ask prices.
(c) 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.
(d) In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Fund invests. Estimated investment company expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the investment companies and are deducted from the value of the funds that the Fund invests in. The effect of the investment company expenses that you bear indirectly is included in the Fund's total return.
(e) Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
(f) The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(g) Amount represents less than $0.005.
(h) Commencement of Investment Operations.
(i) The total return from Fund Inception (first day of trading on the exchange) to April 30, 2008 was (0.19)%.
(j) Annualized.
See Notes to Financial Statements.
71
Financial Highlights (Continued)
PowerShares S&P 500® High Quality Portfolio (SPHQ)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of year | $ | 14.64 | $ | 12.21 | $ | 9.60 | $ | 16.76 | $ | 17.59 | |||||||||||||
Net investment income (loss)(a) | 0.26 | 0.20 | 0.00 | (b) | 0.04 | (0.02 | ) | ||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.74 | 2.31 | 2.64 | (7.19 | ) | (0.81 | ) | ||||||||||||||||
Total from investment operations | 1.00 | 2.51 | 2.64 | (7.15 | ) | (0.83 | ) | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.31 | ) | (0.08 | ) | (0.03 | ) | (0.01 | ) | — | ||||||||||||||
Net asset value at end of year | $ | 15.33 | $ | 14.64 | $ | 12.21 | $ | 9.60 | $ | 16.76 | |||||||||||||
Share price at end of year(c) | $ | 15.33 | $ | 14.64 | $ | 12.21 | $ | 9.60 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN(d) | 7.04 | % | 20.61 | % | 27.63 | % | (42.66 | )% | (4.72 | )% | |||||||||||||
SHARE PRICE TOTAL RETURN(d) | 7.04 | % | 20.61 | % | 27.63 | % | (42.62 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 146,421 | $ | 112,695 | $ | 67,746 | $ | 71,048 | $ | 177,669 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.50 | % | 0.52 | % | 0.70 | % | 0.70 | % | 0.70 | % | |||||||||||||
Expenses, prior to Waivers | 0.70 | % | 0.84 | % | 0.80 | % | 0.72 | % | 0.70 | % | |||||||||||||
Net investment income (loss), after Waivers | 1.82 | % | 1.49 | % | (0.03 | )% | 0.27 | % | (0.12 | )% | |||||||||||||
Portfolio turnover rate(e) | 14 | % | 64 | % | 138 | % | 143 | % | 101 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(f) | $ | 0.01 | $ | 0.02 | $ | (0.00 | )(b) | $ | (0.00 | )(b) | $ | 0.01 |
PowerShares Water Resources Portfolio (PHO)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of year | $ | 20.25 | $ | 18.05 | $ | 14.04 | $ | 20.66 | $ | 19.20 | |||||||||||||
Net investment income(a) | 0.14 | 0.11 | 0.09 | 0.08 | 0.08 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (1.48 | ) | 2.19 | 4.03 | (6.64 | ) | 1.46 | ||||||||||||||||
Total from investment operations | (1.34 | ) | 2.30 | 4.12 | (6.56 | ) | 1.54 | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.13 | ) | (0.10 | ) | (0.11 | ) | (0.06 | ) | (0.08 | ) | |||||||||||||
Net asset value at end of year | $ | 18.78 | $ | 20.25 | $ | 18.05 | $ | 14.04 | $ | 20.66 | |||||||||||||
Share price at end of year(c) | $ | 18.77 | $ | 20.24 | $ | 18.05 | $ | 14.02 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN(d) | (6.59 | )% | 12.81 | % | 29.48 | % | (31.76 | )% | 8.02 | % | |||||||||||||
SHARE PRICE TOTAL RETURN(d) | (6.59 | )% | 12.75 | % | 29.67 | % | (31.63 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 825,510 | $ | 1,260,648 | $ | 1,335,033 | $ | 1,220,027 | $ | 2,196,652 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.62 | % | 0.66 | % | 0.64 | % | 0.64 | % | 0.64 | % | |||||||||||||
Expenses, prior to Waivers | 0.62 | % | 0.66 | % | 0.64 | % | 0.64 | % | 0.63 | % | |||||||||||||
Net investment income, after Waivers | 0.77 | % | 0.63 | % | 0.57 | % | 0.49 | % | 0.39 | % | |||||||||||||
Portfolio turnover rate(e) | 44 | % | 13 | % | 20 | % | 33 | % | 23 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(f) | $ | (0.00 | )(b) | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.01 | ) | $ | 0.01 |
(a) Based on average shares outstanding.
(b) Amount represents less than $0.005.
(c) The mean between the last bid and ask prices.
(d) 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.
(e) Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
(f) The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
See Notes to Financial Statements.
72
Financial Highlights (Continued)
PowerShares WilderHill Clean Energy Portfolio (PBW)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of year | $ | 10.35 | $ | 10.12 | $ | 9.03 | $ | 20.94 | $ | 19.29 | |||||||||||||
Net investment income (loss)(a) | 0.20 | (0.03 | ) | (0.02 | ) | (0.02 | ) | (0.07 | ) | ||||||||||||||
Net realized and unrealized gain (loss) on investments | (5.33 | ) | 0.26 | 1.11 | (11.89 | ) | 1.72 | ||||||||||||||||
Total from investment operations | (5.13 | ) | 0.23 | 1.09 | (11.91 | ) | 1.65 | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.14 | ) | — | — | — | — | |||||||||||||||||
Net asset value at end of year | $ | 5.08 | $ | 10.35 | $ | 10.12 | $ | 9.03 | $ | 20.94 | |||||||||||||
Share price at end of year(b) | $ | 5.08 | $ | 10.33 | $ | 10.11 | $ | 8.99 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN(c) | (49.78 | )% | 2.27 | % | 12.07 | % | (56.88 | )% | 8.55 | % | |||||||||||||
SHARE PRICE TOTAL RETURN(c) | (49.68 | )% | 2.18 | % | 12.46 | % | (57.07 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 178,016 | $ | 541,472 | $ | 657,486 | $ | 658,400 | $ | 1,473,893 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.70 | % | 0.70 | % | 0.70 | % | 0.69 | % | 0.67 | % | |||||||||||||
Expenses, prior to Waivers | 0.76 | % | 0.75 | % | 0.70 | % | 0.69 | % | 0.67 | % | |||||||||||||
Net investment income (loss), after Waivers | 2.98 | % | (0.27 | )% | (0.18 | )% | (0.12 | )% | (0.32 | )% | |||||||||||||
Portfolio turnover rate(d) | 46 | % | 32 | % | 42 | % | 41 | % | 20 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(e) | $ | (0.00 | )(f) | $ | 0.01 | $ | 0.00 | (f) | $ | (0.00 | )(f) | $ | (0.02 | ) |
PowerShares WilderHill Progressive Energy Portfolio (PUW)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of year | $ | 30.68 | $ | 25.19 | $ | 17.38 | $ | 28.23 | $ | 28.63 | |||||||||||||
Net investment income(a) | 0.14 | 0.10 | 0.14 | 0.13 | 0.09 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (4.71 | ) | 5.53 | 7.81 | (10.91 | ) | (0.36 | ) | |||||||||||||||
Total from investment operations | (4.57 | ) | 5.63 | 7.95 | (10.78 | ) | (0.27 | ) | |||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.24 | ) | (0.14 | ) | (0.14 | ) | (0.07 | ) | (0.12 | ) | |||||||||||||
Return of capital | — | — | — | — | (0.01 | ) | |||||||||||||||||
Total distributions | (0.24 | ) | (0.14 | ) | (0.14 | ) | (0.07 | ) | (0.13 | ) | |||||||||||||
Net asset value at end of year | $ | 25.87 | $ | 30.68 | $ | 25.19 | $ | 17.38 | $ | 28.23 | |||||||||||||
Share price at end of year(b) | $ | 25.86 | $ | 30.70 | $ | 25.19 | $ | 17.38 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN(c) | (14.84 | )% | 22.47 | % | 45.96 | % | (38.23 | )% | (0.96 | )% | |||||||||||||
SHARE PRICE TOTAL RETURN(c) | (14.93 | )% | 22.55 | % | 45.96 | % | (38.16 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 47,859 | $ | 75,175 | $ | 60,451 | $ | 39,970 | $ | 62,097 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.71 | % | 0.70 | % | 0.70 | % | 0.70 | % | 0.73 | % | |||||||||||||
Expenses, prior to Waivers | 0.86 | % | 0.86 | % | 0.84 | % | 0.86 | % | 0.88 | % | |||||||||||||
Net investment income, after Waivers | 0.56 | % | 0.37 | % | 0.63 | % | 0.62 | % | 0.30 | % | |||||||||||||
Portfolio turnover rate(d) | 36 | % | 22 | % | 52 | % | 32 | % | 31 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(e) | $ | 0.01 | $ | (0.00 | )(f) | $ | 0.00 | (f) | $ | 0.00 | (f) | $ | 0.01 |
(a) Based on average shares outstanding.
(b) The mean between the last bid and ask prices.
(c) 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.
(d) Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
(e) The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(f) Amount represents less than $0.005.
See Notes to Financial Statements.
73
Notes to Financial Statements
PowerShares Exchange-Traded Fund Trust
April 30, 2012
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, 2012, the Trust offered fifty-eight portfolios. This report includes the following portfolios:
Fund Name | Short Name | ||||||
PowerShares Aerospace & Defense Portfolio (PPA) | "Aerospace & Defense Portfolio" | ||||||
PowerShares CleantechTM Portfolio (PZD) | "CleantechTM Portfolio" | ||||||
PowerShares DWA Technical LeadersTM Portfolio (PDP) | "DWA Technical LeadersTM Portfolio" | ||||||
PowerShares Global Listed Private Equity Portfolio (PSP) | "Global Listed Private Equity Portfolio" | ||||||
PowerShares Golden Dragon China Portfolio (PGJ) (formerly PowerShares Golden Dragon Halter USX China Portfolio) | "Golden Dragon China Portfolio" | ||||||
PowerShares Lux Nanotech Portfolio (PXN) | "Lux Nanotech Portfolio" | ||||||
PowerShares Morningstar StockInvestor Core Portfolio (PYH) | "Morningstar StockInvestor Core Portfolio" | ||||||
PowerShares S&P 500 BuyWrite Portfolio (PBP) | "S&P 500 BuyWrite Portfolio" | ||||||
PowerShares S&P 500® High Quality Portfolio (SPHQ) | "S&P 500® High Quality Portfolio" | ||||||
PowerShares Water Resources Portfolio (PHO) | "Water Resources Portfolio" | ||||||
PowerShares WilderHill Clean Energy Portfolio (PBW) | "WilderHill Clean Energy Portfolio" | ||||||
PowerShares WilderHill Progressive Energy Portfolio (PUW) | "WilderHill Progressive Energy Portfolio" | ||||||
Each portfolio (each a "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 market prices of each Fund's Shares may differ to some degree from the Fund's net asset value ("NAV"). 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 by Authorized Participants, the Shares are not individually redeemable securities of the Funds.
The investment objective of each Fund is to seek investment results that generally correspond (before fees and expenses) to the price and yield of its respective index listed below (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 | Red Rocks Global Listed Private Equity IndexSM | ||||||
Golden Dragon China Portfolio | Halter USX China IndexSM | ||||||
Lux Nanotech Portfolio | Lux Nanotech IndexTM | ||||||
74
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
Fund | Index | ||||||
Morningstar StockInvestor Core Portfolio | Morningstar® StockInvestor Core IndexSM | ||||||
S&P 500 BuyWrite Portfolio | CBOE S&P 500 BuyWrite Index | ||||||
S&P 500® High Quality Portfolio | S&P 500® High Quality Rankings Index | ||||||
Water Resources Portfolio | NASDAQ OMX US 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 accounting principles general accepted in the United States of America ("GAAP") 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. 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 reflect fair value may also
75
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
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 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
Index Risk. Unlike many investment companies, the Funds do not utilize an investing strategy that seeks returns in excess of each Fund's respective Underlying Index. Therefore, a Fund would not necessarily buy or sell a security unless that security is added or removed, respectively, from its respective Underlying Index, even if that security generally is underperforming.
Sampling Risk. With respect to each of Lux Nanotech Portfolio and Water Resources Portfolio, each 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 that the Fund holds 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 CleantechTM Portfolio, each Fund is non-diversified and can invest a greater portion of its assets in securities of individual issuers than can 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. This may increase the Fund's volatility and cause the performance of a relatively small number of issuers to have a greater impact on the Fund's performance.
Equity Risk. Equity risk is the risk that the value of the securities the Fund holds will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities the Fund holds participate or factors relating to specific companies in which the Fund invests. For example, an
76
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
adverse event, such as an unfavorable earnings report, may depress the value of equity securities the Fund holds; the price of common stock may be particularly sensitive to general movements in the stock market; or a drop in the stock market may depress the price of most or all of the common stocks and other equity securities the Fund holds. In addition, common stock in the Fund's portfolio may decline in price if the issuer fails to make anticipated dividend payments because, among other reasons, the issuer of the security experiences a decline in its financial condition. Common stock is subordinated to preferred stocks, bonds and other debt instruments in a company's capital structure, in terms of priority to corporate income, and therefore will be subject to greater dividend risk than preferred stocks or debt instruments of such issuers.
Concentration Risk. A significant percentage of the Underlying Index may be composed of issuers in a single industry or sector of the economy. If a Fund is focused in an industry or sector, it may present more risks than if it were diversified broadly over numerous industries and sectors of the economy. At times, such industry or group of industries may be out of favor and underperform other industries or the market as a whole.
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.
Small and Medium Capitalization Company Risk. Investing in securities of small and medium capitalization companies involves greater risk than customarily is associated with investing in larger, more established companies. These companies' securities may be more volatile and less liquid than those of more established companies. These securities may have returns that vary, sometimes significantly, from the overall securities market. Often small and medium capitalization companies and the industries in which they focus are still evolving and, as a result, they may be more sensitive to changing market conditions.
Foreign Investment Risk. The CleantechTM Portfolio's, the Global Listed Private Equity Portfolio's and the Golden Dragon China Portfolio's investments in the securities of non-U.S. issuers, including depositary receipts, 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 certain Funds will invest in securities denominated in foreign currencies, changes in currency exchange rates may negatively impact the Fund's returns.
Risk of Investing in Listed Private Equity Companies. There are certain risks inherent in the Global Listed Private Equity Portfolio's investments in listed private equity companies, which encompass business development companies ("BDCs") and other financial institutions or vehicles whose principal business is to invest in and lend capital to privately-held companies. The 1940 Act imposes certain restraints upon the operations of a BDC. Generally, little public information exists for private and thinly traded companies and there is a risk that investors may not be able to make a fully informed investment decision. With investments in debt instruments, there is a risk that the issuer may default on its payments or declare bankruptcy. Additionally, a BDC may only incur indebtedness in amounts such that the BDC's asset coverage equals at least 200% after such incurrence. These limitations on asset mix and leverage may
77
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
prohibit the way that the BDC raises capital. BDCs generally invest in less mature private companies which involve greater risk than well-established publicly-traded companies. To the extent that the Fund invests in BDCs or other investment companies, a shareholder in the Fund will bear not only his or her proportionate share of the expenses of the Fund, but also, indirectly the expenses of the BDCs or other investment companies.
The Fund may not acquire greater than 3% of the total outstanding shares of a BDC or of an other investment company. As a result, this limitation could inhibit the Fund's ability to purchase certain of the securities in the Underlying Index in the proportions represented in the Underlying Index. In these circumstances, the Fund would be required to use sampling techniques which could increase the risk of tracking error.
Risks of Investing in MLP Units. The Global Listed Private Equity Portfolio's investments in master limited partnerships ("MLP") units are subject to certain risks inherent in the structure of MLPs, including (i) tax risks, (ii) the limited ability to elect or remove management or the general partner or managing member, (iii) limited voting rights and (iv) conflicts of interest between the general partner or managing member and its affiliates and the limited partners or members.
Aerospace and Defense Industry Concentration Risk. Government aerospace and defense regulation and spending policies can significantly affect the aerospace and defense industry because many companies involved in the aerospace and defense industry rely to a large extent on U.S. (and other) Government demand for their products and services. There are significant inherent risks in contracting with the U.S. Government that could have a material adverse effect on the business, financial condition and results of operations of industry participants.
China Exposure Risk. The value of the securities of companies which derive the majority of their revenues from China included in the Golden Dragon China Portfolio is likely to be more volatile than that of other issuers. The economy of China differs, often unfavorably, from the U.S. economy in such respects as structure, general development, government involvement, wealth distribution, rate of inflation, growth rate, allocation of resources and capital reinvestment, among others.
Nanotechnology Industry Concentration Risk. Small technology companies included in the Lux Nanotech Portfolio are especially risky and may be less experienced, with limited product lines, markets or financial resources. Consequently, these companies are subject to scientific, technological and commercialization risks. These securities have a significantly greater risk of loss than traditional investment securities due to the speculative nature of these investments. Technology companies are generally subject to the risk of rapidly changing technologies, a limited product life span due to the frequent introduction of new or improved products, as well as cyclical market patterns and evolving industry standards. Technology companies also face the risk of losing patent, copyright and trademark protections.
Risk of Concentrating in the Water Industry. Adverse developments in the water industry may significantly affect the value of the Shares of the Water Resources Portfolio. Companies involved in the water industry are subject to environmental considerations, taxes, government regulation, price and supply fluctuations, competition and water conservation.
Clean Energy Industry Concentration Risk. Obsolescence of existing technology, short product cycles, falling prices and profits, competition from new market entrants and general economic conditions can
78
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
significantly affect the clean energy industry. Additionally, intense competition and legislation resulting in more strict government regulations and enforcement policies and specific expenditures for cleanup efforts can significantly affect the clean energy industry. The clean energy industry also is subject to risks associated with hazardous materials. Fluctuations in energy prices and supply and demand of alternative energy fuels, energy conservation, the success of exploration projects and tax and other government regulations significantly affect the clean energy industry. In addition, supply and demand for specific products or services, the supply and demand for oil and gas, the price of oil and gas, production spending, government regulation, world events and economic conditions can affect the industry.
C. Federal Income Taxes
Each Fund intends to comply with the provisions of the Internal Revenue Code of 1986 as amended (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 timing 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 U.S. Federal returns and tax returns in 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 that are directly identifiable to a specific Fund are applied to that Fund. Expenses of the Trust that 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) is responsible for all 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, sub-licensing fees related to its respective Underlying Index, any distribution fees or expenses, litigation expenses, fees payable to the Trust's Board members who are not "interested persons" (as defined in the 1940 Act) of the Trust or Invesco PowerShares Capital Management LLC (the "Adviser")
79
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
(the "Independent Trustees"), expenses incurred in connection with the Board members' services, including travel expenses and legal fees of counsel for the Independent Trustees, and extraordinary expenses. The S&P 500 BuyWrite Portfolio has agreed to pay an annual unitary management fee to the Adviser.
The S&P 500 BuyWrite Portfolio has agreed to pay an annual unitary management fee to the Adviser. The Adviser has agreed to pay for substantially all expenses of the S&P 500 BuyWrite Portfolio, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses.
To the extent a Fund invests in other investment companies, the expenses shown in the accompanying financial statements reflect the expenses of the Fund and do not include any expenses of the investment companies in which the Fund invests. The effects of the investment companies expenses are included in the realized and unrealized gain/loss on the investments in the investment companies.
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 them 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 of the 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 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 purchase 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
80
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
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.
Writing Covered Call Option Risk. By writing covered call options, in return for the receipt of premiums, the S&P 500 BuyWrite Portfolio will give up the opportunity to benefit from potential increases in the value of the S&P 500® Index above the exercise prices of the Written Options, but will continue to bear the risk of declines in the value of the S&P 500® Index. The premiums received from the options may not be sufficient to offset any losses sustained from the volatility of the underlying stocks over time. In addition, the Fund's ability to sell the underlying securities will be limited while the option is in effect unless the Fund extinguishes the option position, through the purchase of an offsetting identical option prior to the expiration of the written option. If trading of options is suspended, the Fund may be unable to write options at times that may be desirable or advantageous to the Fund to do so.
I. Swap Agreements
Global Listed Private Equity Portfolio may enter into various swap transactions, including interest rate, total return, index, currency exchange rate and credit default swap contracts for investment purposes or to manage interest rate, currency or credit risk.
Interest rate, total return, index, and currency exchange rate swap agreements are two-party contracts entered into primarily to exchange the returns (or differentials in rates of returns) earned or realized on particular predetermined investments or instruments. The gross returns to be exchanged or "swapped" between the parties are calculated with respect to a notional amount, i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate or return of an underlying asset, in a particular foreign currency, or in a "basket" of securities representing a particular index.
Changes in the value of swap agreements are recognized as unrealized gains (losses) in the Statement of Operations by "marking to market" on a daily basis to reflect the value of the swap agreement at the end of each trading day. Payments received or paid at the beginning of the agreement are reflected as such on the Statement of Assets and Liabilities and may be referred to as upfront payments. The Fund accrues for the fixed payment stream and amortizes upfront payments, if any, on swap agreements on a daily basis with the net amount, recorded as a component of realized gain (loss), on the Statement of Operations. A liquidation payment received or made at the termination of a swap agreement is recorded as realized gain (loss) on the Statement of Operations. The Fund segregates liquid securities having a value at least equal to the amount of the potential obligation of a Fund under any swap transaction. The Fund's maximum risk of loss from counterparty risk, either as the protection seller or as the protection buyer, is the value of the contract. The risk may be mitigated by having a master netting arrangement between the Fund and the counterparty and by the posting of collateral by the counterparty to cover the Fund's exposure to the counterparty. Entering into these agreements involves, to varying degrees, lack of liquidity and elements of credit, market, and counterparty risk in excess of amounts recognized on the Statement of Assets and Liabilities. Such risks involve the possibility that a swap is difficult to sell or liquidate; the counterparty does not honor its obligations under the agreement and unfavorable interest rates and market fluctuations.
81
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
J. Securities Lending
The CleantechTM Portfolio, Golden Dragon China Portfolio, Lux Nanotech Portfolio, Morningstar StockInvestor Core Portfolio, Water Resources Portfolio and WilderHill Clean Energy Portfolio may lend portfolio securities having a market value up to one-third of the Fund's total assets. Such loans are secured by cash collateral equal to no less than 102% of the market value of the loaned securities determined daily by the securities lending provider. Cash collateral received in connection with these loans is invested in an affiliated money market fund and is shown as such on the Schedule of Investments. It is the policy of these Funds to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to a Fund if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. A Fund could experience delays and costs in gaining access to the collateral. A Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, is included in Affiliated securities lending income on the Statements of Operations. The aggregate value of securities out on loan is shown on the Statements of Assets and Liabilities, if any.
Note 3. Derivative Investments
Global Listed Private Equity Portfolio and S&P 500 BuyWrite Portfolio have implemented required disclosures about derivative instruments and hedging activities in accordance with GAAP. This disclosure is 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.
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, 2012:
Value | |||||||||||
Risk Exposure/Derivative Type | Assets | Liabilities | |||||||||
Global Listed Private Equity Portfolio | |||||||||||
Equity risk | |||||||||||
Swap agreements(a) | $ | 401,548 | $ | — | |||||||
S&P 500 BuyWrite Portfolio | |||||||||||
Equity risk | |||||||||||
Options written contracts | $ | — | $ | (2,359,705 | ) |
(a) Values are disclosed on the Statement of Assets and Liabilities under unrealized appreciation on swap agreements.
82
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
Effect of Derivative Instruments for the year ended April 30, 2012
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 | |||||||
Swap Agreements* | |||||||
Global Listed Private Equity Portfolio* | |||||||
Realized Gain (Loss) | |||||||
Equity risk | $ | (180,860 | ) | ||||
Change in Unrealized Appreciation | |||||||
Equity risk | 401,548 | ||||||
220,688 | |||||||
Options* | |||||||
S&P 500 BuyWrite Portfolio* | |||||||
Realized Gain | |||||||
Equity risk | 492,094 | ||||||
Change in Unrealized Appreciation | |||||||
Equity risk | 2,112,389 | ||||||
Total | $ | 2,604,483 |
* The average notional of options and swap agreements outstanding during year was $111,677,000 and $26,562,557, respectively.
Global Listed Private Equity Portfolio
Open Total Return Swap Agreements | |||||||||||||||||||
Counterparty | Reference Entity | Termination Date | Notional Amount (000) | Value Unrealized Appreciation (Depreciation) | |||||||||||||||
Citibank, N.A. | Fortress Investment Group LLC | 10/26/12 | $ | 3,394 | $ | 57,568 | |||||||||||||
Citibank, N.A. | KKR & Co. LP | 10/26/12 | 9,448 | 183,415 | |||||||||||||||
Citibank, N.A. | KKR Financial Holdings LLC | 10/26/12 | 5,336 | (109,806 | ) | ||||||||||||||
Citibank, N.A. | The Blackstone Group LP | 10/26/12 | 9,944 | 270,371 | |||||||||||||||
Total Total Return Swap Agreements | $ | 28,122 | $ | 401,548 |
83
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
S&P 500 BuyWrite Portfolio
Transactions During the Year | |||||||||||
Call Option Contracts | |||||||||||
Number of Contracts | Premiums Received | ||||||||||
Beginning of year | 912 | $ | 1,879,199 | ||||||||
Written | 10,768 | 28,548,192 | |||||||||
Closed | (7,006 | ) | (19,600,513 | ) | |||||||
Expired | (3,553 | ) | (8,689,025 | ) | |||||||
End of year | 1,121 | $ | 2,137,853 |
Open Options Written at Year End | |||||||||||||||||||||||||||
Contract Month | Strike Price | Number of Contracts | Premiums Received | Notional Value | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||||
Call Option S&P 500 Index | May-12 | $ | 1,390 | 1,121 | $ | 2,137,853 | $ | 2,359,705 | $ | (221,852 | ) |
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 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) has agreed to pay the Adviser an annual fee of 0.50% of the Fund's average daily net assets. The S&P 500 BuyWrite Portfolio has agreed to pay the Adviser an annual unitary management fee of 0.75% of its average daily net assets, pursuant to which the Adviser has agreed to pay for substantially all expenses of S&P 500 BuyWrite Portfolio, including the cost of transfer agency, custody, fund administration, legal, audit, litigation expenses, and other services, except for distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses.
The Adviser's parent, Invesco Ltd., has agreed to indemnify and hold harmless the Global Listed Private Equity Portfolio and the Independent Trustees of the Trust against any and all loss, damages, liability and expenses arising from certain alleged omission or misstatement in the Fund's registration statement.
The Adviser has entered into an Amended and Restated Excess Expense Agreement (the "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 (excluding interest expenses, brokerage commissions and other trading expenses, sub-licensing fees, offering costs, taxes, expenses of the investment companies that are paid indirectly as a result of share ownership of the investment company and extraordinary expenses) of (i) each Fund (except for Morningstar StockInvestor Core Portfolio and S&P 500® High Quality Portfolio and S&P 500 BuyWrite Portfolio) from exceeding 0.60% of the Fund's average daily net assets per year and (ii) each of Morningstar StockInvestor Core Portfolio and S&P 500® High Quality Portfolio (excluding interest expense, brokerage commissions and other trading expenses, offering costs, taxes and extraordinary expenses) from exceeding 0.50% of the Fund's average daily net
84
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
assets per year (the "Expense Cap"), at least until August 31, 2013. 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 Expense Agreement provides that the fees waived or expenses borne by the Adviser are subject to recapture by the Adviser for up to three years from the date the fee was waived 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 Expense Agreement does not apply to S&P 500 BuyWrite Portfolio.
The amounts available for potential future recapture by the Adviser under the Expense Agreement and the expiration schedule at April 30, 2012 are as follows:
Total Potential | Potential Recapture Amounts Expiring | ||||||||||||||||||
Recapture Amounts | 04/30/13 | 04/30/14 | 04/30/15 | ||||||||||||||||
Aerospace & Defense Portfolio | $ | 170,919 | $ | 9,384 | $ | 81,095 | $ | 80,440 | |||||||||||
CleantechTM Portfolio | 226,808 | 58,784 | 92,835 | 75,189 | |||||||||||||||
DWA Technical LeadersTM Portfolio | 6,390 | — | — | 6,390 | |||||||||||||||
Global Listed Private Equity Portfolio | 271,834 | 18,975 | 77,130 | 175,729 | |||||||||||||||
Golden Dragon China Portfolio | 247,891 | 72,246 | 105,598 | 70,047 | |||||||||||||||
Lux Nanotech Portfolio | 293,156 | 80,054 | 111,968 | 101,134 | |||||||||||||||
Morningstar StockInvestor Core Portfolio | 463,604 | 97,514 | 226,080 | 140,010 | |||||||||||||||
S&P 500® High Quality Portfolio | 575,258 | 65,360 | 249,922 | 259,976 | |||||||||||||||
WilderHill Clean Energy Portfolio | 232,144 | — | 54,361 | 177,783 | |||||||||||||||
WilderHill Progressive Energy Portfolio | 251,657 | 74,289 | 97,636 | 79,732 |
The Trust has entered into a Distribution Agreement with Invesco 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 Distributor is an affiliate of the Adviser.
The Adviser has entered into a licensing agreement for each Fund with the following entities (each, a "Licensor"):
Fund | Licensor | ||||||
Aerospace & Defense Portfolio | International Space Business Council | ||||||
CleantechTM Portfolio | Cleantech Captial Indices LLC | ||||||
DWA Technical LeadersTM Portfolio | Dorsey Wright & Associates, Inc. | ||||||
Global Listed Private Equity Portfolio | Red Rocks Capital Partners, LLC | ||||||
Golden Dragon China Portfolio | NASDAQ OMX Group, Inc. | ||||||
Lux Nanotech Portfolio | Lux Research, Inc. | ||||||
Morningstar StockInvestor Core Portfolio | Morningstar, Inc. | ||||||
S&P 500 BuyWrite Portfolio | Standard & Poor's ("S&P"), a division of The McGraw-Hill Companies, Inc. | ||||||
S&P 500® High Quality Portfolio | Standard & Poor's Financial Services LLC | ||||||
Water Resources Portfolio | NASDAQ OMX Group, Inc. | ||||||
WilderHill Clean Energy Portfolio | WilderShares, LLC | ||||||
WilderHill Progressive Energy Portfolio | WilderShares, LLC | ||||||
85
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
Each Underlying Index name trademark is owned by its respective Licensor. These trademarks have been licensed to the Adviser for use with the Funds. Each Fund is entitled to use its Underlying Index pursuant to the Trust's sub-licensing agreement with the Adviser. The Funds (other than the S&P 500 BuyWrite Portfolio) are required to pay the sub-licensing fees that are shown on the Statements of Operations. 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 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 yield curves, loss severities, default rates and discount rates, volatilities 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.
Except for the Funds listed below, as of April 30, 2012, the securities in each Fund were valued based on Level 1 inputs (see Schedule of Investments for security categories). The depreciation on options held in S&P 500 BuyWrite Portfolio was based on Level 1 inputs. 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.
86
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
With respect to each Fund, during the fiscal year ended April 30, 2012, there were no significant transfers between investment levels.
Investments in Securities | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||
Global Listed Private Equity Portfolio | |||||||||||||||||||
Equity Securities | $ | 270,271,446 | $ | — | $ | — | $ | 270,271,446 | |||||||||||
Money Market Fund | 28,465,617 | — | — | 28,465,617 | |||||||||||||||
Swap Agreements* | — | 401,548 | — | 401,548 | |||||||||||||||
Total Investments | $ | 298,737,063 | $ | 401,548 | $ | — | $ | 299,138,611 | |||||||||||
Golden Dragon China Portfolio | |||||||||||||||||||
Equity Securities | $ | 245,376,503 | $ | — | $ | 438,666 | $ | 245,815,169 | |||||||||||
Money Market Fund | 57,621,503 | — | — | 57,621,503 | |||||||||||||||
Total Investments | $ | 302,998,006 | $ | — | $ | 438,666 | $ | 303,436,672 |
* 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, 2012.
S&P 500 BuyWrite Portfolio's Adviser is a subsidiary of Invesco Ltd. and therefore Invesco Ltd. is considered to be affiliated with that Fund. The table below shows the Fund's transactions in and earnings from the investment in Invesco Ltd. for the year ended April 30, 2012.
S&P 500 BuyWrite Portfolio
Value April 30, 2011 | Purchase at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain | Value April 30, 2012 | Dividend Income | |||||||||||||||||||||||||
Invesco Ltd. | $ | 114,949 | $ | 70,431 | $ | (44,316 | ) | $ | (7,355 | ) | $ | 3,905 | $ | 137,614 | $ | 2,065 |
87
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
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, 2012 and 2011:
2012 | 2011 | ||||||||||||||||||||||
Ordinary Income | Long-term Capital Gains | Return of Capital | Ordinary Income | Return of Capital | |||||||||||||||||||
Aerospace & Defense Portfolio | $ | 939,444 | $ | — | $ | — | $ | 1,074,351 | $ | — | |||||||||||||
CleantechTM Portfolio | 997,420 | — | — | 38,868 | — | ||||||||||||||||||
DWA Technical LeadersTM Portfolio | 727,024 | — | — | 639,994 | — | ||||||||||||||||||
Global Listed Private Equity Portfolio | 23,559,182 | — | 2,711,317 | 14,909,521 | — | ||||||||||||||||||
Golden Dragon China Portfolio | 6,163,053 | — | — | 3,021,508 | — | ||||||||||||||||||
Lux Nanotech Portfolio | 94,200 | — | — | — | — | ||||||||||||||||||
Morningstar StockInvestor Core Portfolio | 267,336 | — | — | 132,812 | — | ||||||||||||||||||
S&P 500 BuyWrite Portfolio | 9,784,068 | 499,499 | — | 11,066,172 | — | ||||||||||||||||||
S&P 500® High Quality Portfolio | 2,688,575 | — | — | 663,992 | — | ||||||||||||||||||
Water Resources Portfolio | 7,241,759 | — | — | 6,570,710 | — | ||||||||||||||||||
WilderHill Clean Energy Portfolio | 6,029,472 | — | — | — | — | ||||||||||||||||||
WilderHill Progressive Energy Portfolio | 512,778 | — | — | 319,968 | — |
Tax Components of Net Assets at Fiscal Year-End:
Undistributed Ordinary Income | Undistributed Long-term Capital Gains | Temporary Book/Tax Differences | Net Unrealized Appreciation (Depreciation) - Investments | Net Unrealized Appreciation (Depreciation) - Other Investments | Capital Loss Carryforward | Post-October Capital Deferrals | Shares of Beneficial Interest | Total Net Assets | |||||||||||||||||||||||||||||||
Aerospace & Defense Portfolio | $ | 83,398 | $ | — | $ | (10,348 | ) | $ | (8,800,690 | ) | $ | — | $ | (26,866,595 | ) | $ | (796,629 | ) | $ | 91,357,400 | $ | 54,966,536 | |||||||||||||||||
CleantechTM Portfolio | 236,098 | — | (9,060 | ) | (5,120,918 | ) | 1,333 | (68,238,246 | ) | (5,014,442 | ) | 178,450,714 | 100,305,479 | ||||||||||||||||||||||||||
DWA Technical LeadersTM Portfolio | 656,213 | — | (13,639 | ) | 91,208,686 | — | (209,736,563 | ) | (6,147,639 | ) | 695,110,530 | 571,077,588 | |||||||||||||||||||||||||||
Global Listed Private Equity Portfolio | — | — | (10,852 | ) | (20,018,253 | ) | (3,067 | ) | (79,777,898 | ) | (5,391,340 | ) | 401,945,203 | 296,743,793 | |||||||||||||||||||||||||
Golden Dragon China Portfolio | 541,615 | — | (19,120 | ) | (75,148,620 | ) | — | (167,002,244 | ) | (25,405,986 | ) | 512,872,321 | 245,837,966 | ||||||||||||||||||||||||||
Lux Nanotech Portfolio | 143,426 | — | (6,763 | ) | (3,867,969 | ) | — | (74,122,356 | ) | (2,615,303 | ) | 102,751,758 | 22,282,793 | ||||||||||||||||||||||||||
Morningstar StockInvestor Core Portfolio | 33,737 | — | (5,728 | ) | 2,315,741 | — | (30,334,486 | ) | (11,840 | ) | 43,368,271 | 15,365,695 | |||||||||||||||||||||||||||
S&P 500 BuyWrite Portfolio | 3,654,628 | 1,177,405 | — | — | — | — | — | 149,695,887 | 154,527,920 | ||||||||||||||||||||||||||||||
S&P 500® High Quality Portfolio | 307,461 | — | (8,775 | ) | 16,918,786 | — | (139,155,359 | ) | (759,771 | ) | 269,118,303 | 146,420,645 | |||||||||||||||||||||||||||
Water Resources Portfolio | 1,157,471 | — | (55,484 | ) | (36,883,772 | ) | — | (423,401,351 | ) | (60,630,428 | ) | 1,345,323,847 | 825,510,283 | ||||||||||||||||||||||||||
WilderHill Clean Energy Portfolio | 2,668,411 | — | (32,758 | ) | (154,469,005 | ) | — | (1,256,908,059 | ) | (48,273,165 | ) | 1,635,030,316 | 178,015,740 | ||||||||||||||||||||||||||
WilderHill Progressive Energy Portfolio | — | — | (6,596 | ) | 1,319,397 | — | (29,054,389 | ) | (1,086,747 | ) | 76,687,306 | 47,858,971 |
* The Funds elected to defer capital losses incurred after October 31 ("Post-October Capital Losses"). Post-October Capital 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 Regulated Investment Company Modernization Act of 2010 (The "Act") eliminated the
88
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
eight-year carryover period for capital losses that arise in taxable years beginning after its enactment date of December 22, 2010. Consequently, these capital losses can be carried forward for an unlimited period. However, capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Additionally, post-enactment capital loss carryforwards will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. 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, 2012, which expire on April 30 of each year listed below:
Post-effective no expiration | |||||||||||||||||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | 2019 | Short-term | Long-term | Total* | |||||||||||||||||||||||||||||||
Aerospace & Defense Portfolio | $ | — | $ | 104,662 | $ | 2,374,303 | $ | 7,470,897 | $ | 6,428,813 | $ | 9,464,875 | $ | — | $ | 1,023,045 | $ | 26,866,595 | |||||||||||||||||||||
CleantechTM Portfolio | — | — | 1,171,839 | 14,341,075 | 25,186,026 | 12,098,616 | 465,923 | 14,974,767 | 68,238,246 | ||||||||||||||||||||||||||||||
DWA Technical LeadersTM Portfolio | — | — | 5,046,566 | 92,771,702 | 60,219,842 | 10,496,532 | 41,201,921 | — | 209,736,563 | ||||||||||||||||||||||||||||||
Global Listed Private Equity Portfolio | — | — | 796,018 | 7,687,052 | 47,149,399 | — | 18,667,009 | 5,478,420 | 79,777,898 | ||||||||||||||||||||||||||||||
Golden Dragon China Portfolio | 1,018,146 | �� | 3,128,677 | 1,235,904 | 22,836,421 | 74,072,167 | 35,483,714 | 5,784,950 | 23,442,265 | 167,002,244 | |||||||||||||||||||||||||||||
Lux Nanotech Portfolio | — | 3,986,980 | 793,005 | 27,406,131 | 14,663,516 | 12,379,025 | 3,634,646 | 11,259,053 | 74,122,356 | ||||||||||||||||||||||||||||||
Morningstar StockInvestor Core Portfolio | — | — | 3,798,072 | 6,546,039 | 17,110,347 | 2,874,318 | 5,038 | 672 | 30,334,486 | ||||||||||||||||||||||||||||||
S&P 500® High Quality Portfolio** | — | 28,563,259 | 21,013,690 | 37,241,965 | 42,466,537 | 9,869,908 | — | — | 139,155,359 | ||||||||||||||||||||||||||||||
Water Resources Portfolio | — | 11,876,489 | 3,553,481 | 93,208,162 | 265,948,030 | 33,978,301 | 14,836,888 | — | 423,401,351 | ||||||||||||||||||||||||||||||
WilderHill Clean Energy Portfolio | 2,098,368 | 89,533,576 | 44,707,703 | 261,712,498 | 460,657,845 | 241,008,862 | 25,897,511 | 131,291,696 | 1,256,908,059 | ||||||||||||||||||||||||||||||
WilderHill Progressive Energy Portfolio | — | — | 179,432 | 8,319,827 | 12,433,887 | 2,282,887 | 2,951,092 | 2,887,264 | 29,054,389 |
* Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code.
** The Fund utilized $190,492 of capital loss carryforward during the fiscal year ended April 30, 2012.
Note 8. Investment Transactions
For the fiscal year ended April 30, 2012, 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 | $ | 18,877,343 | $ | 19,023,380 | |||||||
CleantechTM Portfolio | 32,126,626 | 32,221,677 | |||||||||
DWA Technical LeadersTM Portfolio | 459,568,166 | 459,351,700 | |||||||||
Global Listed Private Equity Portfolio | 288,365,462 | 326,124,096 | |||||||||
Golden Dragon China Portfolio | 69,723,857 | 70,524,690 | |||||||||
Lux Nanotech Portfolio | 15,097,139 | 14,607,961 | |||||||||
Morningstar StockInvestor Core Portfolio | 559,284 | 437,732 | |||||||||
S&P 500 BuyWrite Portfolio | 65,908,757 | 70,499,574 | |||||||||
S&P 500® High Quality Portfolio | 18,229,152 | 18,718,022 |
89
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
Purchases | Sales | ||||||||||
Water Resources Portfolio | $ | 425,742,301 | $ | 423,722,155 | |||||||
WilderHill Clean Energy Portfolio | 140,579,454 | 138,316,834 | |||||||||
WilderHill Progressive Energy Portfolio | 19,940,444 | 19,593,338 |
For the fiscal year ended April 30, 2012, in-kind transactions associated with creations and redemptions were as follows:
Securities Received | Securities Delivered | ||||||||||
Aerospace & Defense Portfolio | $ | 523,746,272 | $ | 563,861,463 | |||||||
CleantechTM Portfolio | 6,245,734 | 30,998,824 | |||||||||
DWA Technical LeadersTM Portfolio | 345,619,919 | 238,910,037 | |||||||||
Global Listed Private Equity Portfolio | 61,422,465 | 121,701,764 | |||||||||
Golden Dragon China Portfolio | 13,566,879 | 105,277,672 | |||||||||
Lux Nanotech Portfolio | 3,901,535 | 7,889,541 | |||||||||
Morningstar StockInvestor Core Portfolio | 1,325,853 | 5,864,962 | |||||||||
S&P 500 BuyWrite Portfolio | 64,459,801 | 29,614,896 | |||||||||
S&P 500® High Quality Portfolio | 80,051,264 | 54,067,691 | |||||||||
Water Resources Portfolio | 290,544,645 | 607,676,738 | |||||||||
WilderHill Clean Energy Portfolio | 42,169,786 | 159,654,971 | |||||||||
WilderHill Progressive Energy Portfolio | 8,387,976 | 23,617,596 |
Gains and losses on in-kind transactions are generally not considered taxable gains and losses for Federal income tax purposes.
At April 30, 2012, 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 | $ | 63,881,829 | $ | (8,800,690 | ) | $ | 1,407,808 | $ | (10,208,498 | ) | |||||||||
CleantechTM Portfolio | 115,261,339 | (5,120,918 | ) | 13,516,092 | (18,637,010 | ) | |||||||||||||
DWA Technical LeadersTM Portfolio | 480,199,780 | 91,208,686 | 93,867,396 | (2,658,710 | ) | ||||||||||||||
Global Listed Private Equity Portfolio | 318,755,316 | (20,018,253 | ) | 9,879,054 | (29,897,307 | ) | |||||||||||||
Golden Dragon China Portfolio | 378,585,292 | (75,148,620 | ) | 24,958,342 | (100,106,962 | ) | |||||||||||||
Lux Nanotech Portfolio | 30,333,318 | (3,867,969 | ) | 2,863,279 | (6,731,248 | ) | |||||||||||||
Morningstar StockInvestor Core Portfolio | 13,893,076 | 2,315,741 | 2,766,034 | (450,293 | ) | ||||||||||||||
S&P 500 BuyWrite Portfolio | 156,906,467 | — | — | — | |||||||||||||||
S&P 500® High Quality Portfolio | 129,605,555 | 16,918,786 | 18,343,428 | (1,424,642 | ) | ||||||||||||||
Water Resources Portfolio | 890,345,598 | (36,883,772 | ) | 66,708,159 | (103,591,931 | ) | |||||||||||||
WilderHill Clean Energy Portfolio | 384,581,081 | (154,469,005 | ) | 8,826,453 | (163,295,458 | ) | |||||||||||||
WilderHill Progressive Energy Portfolio | 46,670,221 | 1,319,397 | 6,318,275 | (4,998,878 | ) |
90
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
Note 9. Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of in-kind transactions and utilization of book equalization, on April 30, 2012, 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, 2012, the reclassifications were as follows:
Undistributed Net Investment Income (Loss) | Undistributed Net Realized Gain (Loss) | Shares of Beneficial Interest | |||||||||||||
Aerospace & Defense Portfolio | $ | (133,587 | ) | $ | 12,660,885 | $ | (12,527,298 | ) | |||||||
CleantechTM Portfolio | (11,372 | ) | (6,772,508 | ) | 6,783,880 | ||||||||||
DWA Technical LeadersTM Portfolio | (186,322 | ) | (35,846,608 | ) | 36,032,930 | ||||||||||
Global Listed Private Equity Portfolio | 10,250,054 | 3,400,744 | (13,650,798 | ) | |||||||||||
Golden Dragon China Portfolio | 572,059 | (17,560,658 | ) | 16,988,599 | |||||||||||
Lux Nanotech Portfolio | 8,938 | (1,199,724 | ) | 1,190,786 | |||||||||||
Morningstar StockInvestor Core Portfolio | (1,712 | ) | (1,342,258 | ) | 1,343,970 | ||||||||||
S&P 500 BuyWrite Portfolio | 13,484,606 | (8,252,824 | ) | (5,231,782 | ) | ||||||||||
S&P 500® High Quality Portfolio | (67,229 | ) | (11,638,856 | ) | 11,706,085 | ||||||||||
Water Resources Portfolio | 148,866 | (91,028,363 | ) | 90,879,497 | |||||||||||
WilderHill Clean Energy Portfolio | 47,608 | 9,923,268 | (9,970,876 | ) | |||||||||||
WilderHill Progressive Energy Portfolio | 169,703 | (5,730,689 | ) | 5,560,986 |
Note 10. Trustees' Fees
The Funds compensate each Independent Trustee. The Adviser, as a result of the unitary management fee, pays for such compensation for S&P 500 BuyWrite Portfolio. The Trustees who are affiliated with the Adviser (the "Non-Independent Trustees") of the Trust do not receive any Trustees' fees.
The Trust has adopted a deferred compensation plan (the "Plan"). Under the Plan, an Independent Trustee who 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 select 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 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. Transactions in capital shares for each Fund are disclosed in detail on the Statements of Changes in Net Assets.
91
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
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
Effective June 15, 2012, the name of the Underlying Index of the Golden Dragon China Portfolio will change to the NASDAQ Golden Dragon China Index. Also effective June 15, 2012, the methodology by which the Underlying Index is formulated will change.
Effective June 30, 2012, the methodology by which Red Rocks Global Listed Private Equity IndexSM, the Underlying Index of the Global Listed Private Equity Portfolio, is formulated will change. Also effective June 30, 2012, the "SM" symbol will be deleted from all references to the Underlying Index.
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 PowerShares Aerospace & Defense Portfolio, PowerShares CleantechTM Portfolio, PowerShares DWA Technical LeadersTM Portfolio, PowerShares Global Listed Private Equity Portfolio, PowerShares Golden Dragon China Portfolio (formerly PowerShares Golden Dragon Halter USX China Portfolio), PowerShares Lux Nanotech Portfolio, PowerShares Morningstar StockInvestor Core Portfolio, PowerShares S&P 500 BuyWrite Portfolio, PowerShares S&P 500® High Quality Portfolio, PowerShares Water Resources Portfolio, PowerShares WilderHill Clean Energy Portfolio and PowerShares WilderHill Progressive Energy Portfolio (each an individual portfolio of PowerShares Exchange-Traded Fund Trust, hereafter referred to as the "Funds") at April 30, 2012, the results of each of their operations for the year then ended, the change in each of their net assets for each of the two years in the period then ended 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 Funds' 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, 2012 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Chicago, IL
June 25, 2012
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, 2012:
Federal Income Tax Information
Qualified Dividend Income* | Corporate Dividends-Received Deduction* | ||||||||||
Aerospace & Defense Portfolio | 100 | % | 100 | % | |||||||
CleantechTM Portfolio | 100 | % | 38 | % | |||||||
DWA Technical LeadersTM Portfolio | 100 | % | 100 | % | |||||||
Global Listed Private Equity Portfolio | 27 | % | 15 | % | |||||||
Golden Dragon China Portfolio | 39 | % | 0 | % | |||||||
Lux Nanotech Portfolio | 87 | % | 78 | % | |||||||
Morningstar StockInvestor Core Portfolio | 100 | % | 100 | % | |||||||
S&P 500 BuyWrite Portfolio | 0 | % | 0 | % | |||||||
S&P 500® High Quality Portfolio | 100 | % | 100 | % | |||||||
Water Resources Portfolio | 100 | % | 100 | % | |||||||
WilderHill Clean Energy Portfolio | 33 | % | 23 | % | |||||||
WilderHill Progressive Energy Portfolio | 100 | % | 75 | % |
* The above percentages are based on ordinary income dividends paid to shareholders during the Fund's fiscal year.
94
Trustees and Officers
The Independent Trustees, the Non-Independent 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, 2012.
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 During the Past 5 Years | ||||||||||||||||||
Ronn R. Bagge (54) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road 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) | 120 | None | ||||||||||||||||||
Todd J. Barre (54) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Trustee | Since 2010 | Assistant Professor of Business, Trinity Christian College (2010-Present); formerly 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 | 120 | None | ||||||||||||||||||
* This is the date the Independent 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, 2012, the Fund Complex consisted of the Trust's 58 portfolios and three other exchange-traded fund trusts with 62 portfolios advised by the Adviser.
95
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 During the Past 5 Years | ||||||||||||||||||
Marc M. Kole (51) 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) | 120 | None | ||||||||||||||||||
Philip M. Nussbaum (50) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Trustee | Since 2003 | Chairman, Performance Trust Capital Partners (2004-Present) | 120 | None | ||||||||||||||||||
* This is the date the Independent 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, 2012, the Fund Complex consisted of the Trust's 58 portfolios and three other exchange-traded fund trusts with 62 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 During the Past 5 Years | ||||||||||||||||||
Donald H. Wilson (52) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Chairman of the Board and Trustee | TrusteeSince 2006, Chair Since 2012 | 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) | 120 | None | ||||||||||||||||||
* This is the date the Independent 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, 2012, the Fund Complex consisted of the Trust's 58 portfolios and three other exchange-traded fund trusts with 62 portfolios advised by the Adviser.
97
Trustees and Officers (Continued)
The Non-Independent Trustees and the executive officers of the Trust, their term of office and length of time served, their principal business occupations during the past five years, the number of portfolios in the Fund Complex overseen by the Non-Independent Trustees and the other directorships, if any held by the Trustees are shown below.
Name, Address, and Age of Non-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 Non- Independent Trustees | Other Directorships Held by Non-Independent Trustees During the Past 5 Years | ||||||||||||||||||
H. Bruce Bond (48) Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | 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) | 120 | None | ||||||||||||||||||
* This is the date the Non-Independent 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, 2012, the Fund Complex consists of the Trust's 58 portfolios and three other exchange-traded fund trusts with 62 portfolios advised by the Adviser.
98
Trustees and Officers (Continued)
Name, Address, and Age of Non-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 Non- Independent Trustees | Other Directorships Held by Non-Independent Trustees During the Past 5 Years | ||||||||||||||||||
Kevin M. Carome (55) 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 | 120 | None | ||||||||||||||||||
* This is the date the Non-Independent 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, 2012, the Fund Complex consisted of the Trust's 58 portfolios and three other exchange-traded fund trusts with 62 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 (37) Invesco Management Group, Inc. 11 Greenway Plaza Suite 1000 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) | ||||||||||||
Benjamin Fulton (50) 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 (30) 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 Portfolio Manager, Invesco PowerShares Capital Management LLC (2007-2008); Research Analyst, Invesco PowerShares Capital Management LLC (2005-2007); Research Analyst and Trader, Ritchie Capital, a hedge fund operator (2003-2005) | ||||||||||||
David Warren (54) Invesco Canada Ltd. 5140 Yonge Street Suite 900 Toronto, Ontario M2N 6X7 | Vice President | Since 2009 | Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. and Chief Administrative Officer, North American Retail, Invesco Ltd (2007-Present); formerly, Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (2000-2006) | ||||||||||||
* This is the period for which the Officers began serving the Trust. Each Officer serves an indefinite term, until his or her 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 | ||||||||||||
Christopher Joe (42) Invesco Management Group, Inc. 11 Greenway Plaza Suite 1000 Houston, TX 77046-1173 | Chief Compliance Officer | Since 2012 | U.S. Compliance Director, Invesco, Ltd.; Chief Compliance Officer, Invesco Investment Advisers, LLC (registered investment adviser); formerly, Assistant Fund Accounting Manager, Invesco, Ltd. | ||||||||||||
Sheri Morris (47) Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Treasurer | Since 2011 | Vice President, Treasurer and Principal Financial Officer, The Invesco Funds; Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) and Treasurer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Fund Trust. Formerly, Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.; Assistant Vice President and Assistant Treasurer, The Invesco Funds and Assistant Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc. | ||||||||||||
Anna Paglia (37) Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Secretary | Since 2011 | Head of Legal, Invesco PowerShares Capital Management LLC (2010-Present); formerly, Partner, K&L Gates LLP (formerly, Bell Boyd & Lloyd LLP) (2007-2010). Associate Counsel at Barclays Global Investors Ltd. (2004-2006) | ||||||||||||
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) 983-0903.
* This is the period for which the Officers began serving the Trust. Each Officer serves an indefinite term, until his or her successor is elected.
101
Board Considerations Regarding Approval of Continuation of Investment Advisory Agreement
At a meeting held on April 19, 2012, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust (the "Trust"), including the Independent Trustees, approved the continuation of the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the "Adviser") and the Trust for the following 56 series (each, a "Fund" and collectively, the "Funds"):
PowerShares Aerospace & Defense Portfolio
PowerShares Buyback AchieversTM Portfolio
PowerShares CleantechTM Portfolio
PowerShares Dividend AchieversTM Portfolio
PowerShares DWA Technical LeadersTM Portfolio
PowerShares Dynamic Banking Portfolio
PowerShares Dynamic Basic Materials Sector Portfolio
PowerShares Dynamic Biotechnology & Genome Portfolio
PowerShares Dynamic Building & Construction Portfolio
PowerShares Dynamic Consumer Discretionary Sector Portfolio
PowerShares Dynamic Consumer Staples Sector Portfolio
PowerShares Dynamic Energy Exploration & Production Portfolio
PowerShares Dynamic Energy Sector Portfolio
PowerShares Dynamic Financial Sector Portfolio
PowerShares Dynamic Food & Beverage Portfolio
PowerShares Dynamic Healthcare Sector Portfolio
PowerShares Dynamic Industrials Sector Portfolio
PowerShares Dynamic Insurance Portfolio
PowerShares Dynamic Large Cap Growth Portfolio
PowerShares Dynamic Large Cap Value Portfolio
PowerShares Dynamic Leisure and Entertainment Portfolio
PowerShares Dynamic MagniQuant Portfolio
PowerShares Dynamic Market Portfolio
PowerShares Dynamic Media Portfolio
PowerShares Dynamic Networking Portfolio
PowerShares Dynamic Oil & Gas Services Portfolio
PowerShares Dynamic OTC Portfolio
PowerShares Dynamic Pharmaceuticals Portfolio
PowerShares Dynamic Retail Portfolio
PowerShares Dynamic Semiconductors Portfolio
PowerShares Dynamic Software Portfolio
PowerShares Dynamic Technology Sector Portfolio
PowerShares Dynamic Utilities Portfolio
PowerShares Financial Preferred Portfolio
PowerShares FTSE RAFI US 1000 Portfolio
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio
PowerShares Fundamental Pure Large Core Portfolio
PowerShares Fundamental Pure Large Growth Portfolio
PowerShares Fundamental Pure Large Value Portfolio
PowerShares Fundamental Pure Mid Core Portfolio
PowerShares Fundamental Pure Mid Growth Portfolio
PowerShares Fundamental Pure Mid Value Portfolio
PowerShares Fundamental Pure Small Core Portfolio
PowerShares Fundamental Pure Small Growth Portfolio
PowerShares Fundamental Pure Small Value Portfolio
PowerShares Global Listed Private Equity Portfolio
PowerShares Golden Dragon Halter USX China Portfolio
PowerShares High Yield Equity Dividend AchieversTM Portfolio
PowerShares International Dividend AchieversTM Portfolio
PowerShares Lux Nanotech Portfolio
PowerShares Morningstar StockInvestor Core Portfolio
PowerShares S&P 500 High Quality Portfolio
PowerShares Water Resources Portfolio
PowerShares WilderHill Clean Energy Portfolio
PowerShares WilderHill Progressive Energy Portfolio
PowerShares Zacks Micro Cap Portfolio
102
Board Considerations Regarding Approval of 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 a Fund grows, (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 for the one-year, three-year, five-year and since-inception periods ended December 31, 2011, as applicable, including reports on the correlation and tracking error between each Fund's performance and the performance of its underlying index, as well as the Adviser's analysis of the tracking error between each Fund and its underlying index. The Trustees noted that for each applicable period 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 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 daily net assets for each Fund other than PowerShares Dividend AchieversTM Portfolio, PowerShares High Yield Equity Dividend AchieversTM Portfolio, PowerShares International Dividend AchieversTM Portfolio, PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Core Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio,
103
Board Considerations Regarding Approval of Continuation of Investment Advisory Agreement (Continued)
PowerShares Fundamental Pure Small Core Portfolio, PowerShares Fundamental Pure Small Growth Portfolio and PowerShares Fundamental Pure Small Value Portfolio;
• 0.40% of the Fund's average daily net assets for each of PowerShares Dividend AchieversTM Portfolio, PowerShares High Yield Equity Dividend AchieversTM Portfolio and PowerShares International Dividend AchieversTM Portfolio; and
• 0.29% of the Fund's average daily net assets for each of PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Core Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio, PowerShares Fundamental Pure Small Growth Portfolio and PowerShares Fundamental Pure Small Value Portfolio (for each of PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Mid Core Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio, PowerShares Fundamental Pure Small Growth Portfolio and PowerShares Fundamental Pure Small Value Portfolio, the Trustees noted that the advisory fee for each of these Funds was reduced to 0.29% effective June 16, 2011).
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, 2013, as set forth below:
• 0.60%, excluding interest expenses, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses 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, acquired fund fees and expenses and extraordinary expenses, for each of PowerShares Dividend AchieversTM Portfolio, PowerShares High Yield Equity Dividend AchieversTM Portfolio and PowerShares International Dividend AchieversTM Portfolio;
• 0.50%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for each of PowerShares Morningstar StockInvestor Core Portfolio and PowerShares S&P 500 High Quality Portfolio;
• 0.39%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for each of PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Core Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio, PowerShares Fundamental Pure Small Growth Portfolio and PowerShares Fundamental Pure Small Value Portfolio
104
Board Considerations Regarding Approval of Continuation of Investment Advisory Agreement (Continued)
(for each of PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Mid Core Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio, PowerShares Fundamental Pure Small Growth Portfolio and PowerShares Fundamental Pure Small Value Portfolio, the Trustees noted that the Expense Cap for each of these Funds was reduced to 0.39% effective June 16, 2011); and
• 0.60%, excluding interest expenses, licensing fees, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses 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 with comparable investment strategies as the Funds, except for PowerShares FTSE RAFI US 1000 Portfolio, and further noted the Adviser's representation that the advisory fee charged to the PowerShares FTSE RAFI US 1000 Portfolio was not higher than the fee the Adviser charged to its other clients with comparable investment strategies. The Trustees noted that each Fund's advisory fee (for the year ended December 31, 2011) 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 Global Listed Private Equity Portfolio and PowerShares Golden Dragon Halter USX China Portfolio, which was equal to or 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 Dynamic Large Cap Growth Portfolio, PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Growth Portfolio and PowerShares Fundamental Pure Small Value Portfolio, which was lower than the median advisory fee of its open-end index peer funds; and there was no comparable data for PowerShares Aerospace & Defense Portfolio, PowerShares CleantechTM Portfolio, PowerShares Dynamic Banking Portfolio, PowerShares Dynamic Basic Materials Sector Portfolio, PowerShares Dynamic Biotechnology & Genome Portfolio, PowerShares Dynamic Building & Construction Portfolio, PowerShares Dynamic Consumer Discretionary Sector Portfolio, PowerShares Dynamic Consumer Staples Sector Portfolio, PowerShares Dynamic Financial Sector Portfolio, PowerShares Dynamic Food & Beverage Portfolio, PowerShares Dynamic Healthcare Sector Portfolio, PowerShares Dynamic Industrials Sector Portfolio, PowerShares Dynamic Insurance Portfolio, PowerShares Dynamic Leisure and Entertainment Portfolio, PowerShares Dynamic Media Portfolio, PowerShares Dynamic Pharmaceuticals Portfolio, PowerShares Dynamic Retail Portfolio, PowerShares Financial Preferred Portfolio, PowerShares Global Listed Private Equity Portfolio or PowerShares Golden Dragon Halter USX China 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, the distinguishing factors of the Funds, and the higher administrative, operational and management oversight
105
Board Considerations Regarding Approval of Continuation of Investment Advisory Agreement (Continued)
costs for the Adviser. With respect to the Funds' expense ratios, the Trustees noted that the net expense ratio for each Fund (for the year ended December 31, 2011) 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, PowerShares Golden Dragon Halter USX China Portfolio and PowerShares S&P 500 High Quality Portfolio, which was equal to or 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 Dividend AchieversTM Portfolio, PowerShares DWA Technical LeadersTM Portfolio, PowerShares Dynamic Energy Exploration & Production Portfolio, PowerShares Dynamic Energy Sector Portfolio, PowerShares Dynamic Large Cap Growth Portfolio, PowerShares Dynamic Large Cap Value Portfolio, PowerShares Dynamic Networking Portfolio, PowerShares Oil & Gas Services Portfolio, PowerShares Dynamic OTC Portfolio, PowerShares Dynamic Semiconductors Portfolio, PowerShares Dynamic Software Portfolio, PowerShares Dynamic Technology Sector Portfolio, PowerShares Dynamic Utilities Sector Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Core Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio, PowerShares Fundamental Pure Small Growth Portfolio, PowerShares Fundamental Pure Small Value Portfolio, PowerShares High Yield Equity Dividend AchieversTM Portfolio, PowerShares Lux Nanotech Portfolio, PowerShares S&P 500 High Quality Portfolio, PowerShares Water Resources Portfolio, PowerShares WilderHill Clean Energy Portfolio and PowerShares WilderHill Progressive Energy Portfolio, which was lower than the median expense ratio of its open-end index peer funds; and there was no comparable data for PowerShares Aerospace & Defense Portfolio, PowerShares CleantechTM Portfolio, PowerShares Dynamic Banking Portfolio, PowerShares Dynamic Basic Materials Sector Portfolio, PowerShares Dynamic Biotechnology & Genome Portfolio, PowerShares Dynamic Building & Construction Portfolio, PowerShares Dynamic Consumer Discretionary Sector Portfolio, PowerShares Dynamic Consumer Staples Sector Portfolio, PowerShares Dynamic Financial Sector Portfolio, PowerShares Dynamic Food & Beverage Portfolio, PowerShares Dynamic Healthcare Sector Portfolio, PowerShares Dynamic Industrials Sector Portfolio, PowerShares Dynamic Insurance Portfolio, PowerShares Dynamic Leisure and Entertainment Portfolio, PowerShares Dynamic Media Portfolio, PowerShares Dynamic Pharmaceuticals Portfolio, PowerShares Dynamic Retail Portfolio, PowerShares Financial Preferred Portfolio, PowerShares Global Listed Private Equity Portfolio or PowerShares Golden Dragon Halter USX China 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, and noted those Funds for which license fees are included in the Funds' Expense Caps.
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.
106
Board Considerations Regarding Approval of Continuation of Investment Advisory Agreement (Continued)
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 Portfolio 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 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.
107
Board Considerations Regarding Approval of Continuation of Investment Advisory Agreement (Continued)
At a meeting held on April 19, 2012, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust (the "Trust"), including the Independent Trustees, approved the continuation of the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the "Adviser") and the Trust for PowerShares NASDAQ Internet Portfolio and PowerShares S&P 500 BuyWrite Portfolio (each, a "Fund" and collectively, the "Funds").
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 a Fund grows, (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 for the one-year, three-year and since-inception (June 12, 2008 for PowerShares NASDAQ Internet Portfolio and December 20, 2007 for PowerShares S&P 500 BuyWrite Portfolio) periods ended December 31, 2011, including reports on the correlation and tracking error between each Fund's performance and the performance of its underlying index, as well as the Adviser's analysis of the tracking error between each Fund and its underlying index. The Trustees noted that for each period 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 the annual unitary advisory fee is 0.60% for PowerShares NASDAQ Internet Portfolio and 0.75% for PowerShares S&P 500 BuyWrite Portfolio, and that the Adviser pays all other operating expenses of each
108
Board Considerations Regarding Approval of Continuation of Investment Advisory Agreement (Continued)
Fund, except that each Fund pays its brokerage commissions and other trading expenses, taxes, interest and extraordinary expenses.
The Trustees noted that the Adviser represented that it does not provide investment advisory services to any clients with comparable investment strategies as the Funds. The Trustees noted that PowerShares NASDAQ Internet Portfolio's advisory fee was higher than the median expense ratio of its ETF peer funds, but was lower than the median expense ratios of its open-end index peer funds and open-end actively-managed peer funds. The Trustees noted that PowerShares S&P 500 BuyWrite Portfolio's advisory fee was lower than the median expense ratios of its open-end index peer funds and open-end actively-managed peer funds. The Trustees also noted that there were no comparable ETFs for PowerShares S&P 500 BuyWrite Portfolio. The Trustees noted that each Fund's advisory fee was reasonable because of the complexity of the indices, 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 each Fund 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 relationships 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.
109
This page intentionally left blank
This page intentionally left blank
This page intentionally left blank
PROXY VOTING POLICIES AND PROCEDURES
A description of the Trust's 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) 983-0903. 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) 983-0903; or (ii) accessing the Trust's Form N-PX on the Commission's website at www.sec.gov.
QUARTERLY PORTFOLIOS
The Trust files its complete schedule of portfolio holdings for the Funds 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
© 2012 Invesco PowerShares Capital Management LLC P-PS-AR-4
2012 Annual Report to Shareholders
April 30, 2012
PowerShares Dynamic Basic Materials Sector Portfolio (PYZ)
PowerShares Dynamic Consumer Discretionary Sector Portfolio (PEZ)
PowerShares Dynamic Consumer Staples Sector Portfolio (PSL)
PowerShares Dynamic Energy Sector Portfolio (PXI)
PowerShares Dynamic Financial Sector Portfolio (PFI)
PowerShares Dynamic Healthcare Sector Portfolio (PTH)
PowerShares Dynamic Industrials Sector Portfolio (PRN)
PowerShares Dynamic Technology Sector Portfolio (PTF)
PowerShares Dynamic Utilities Portfolio (PUI)
PowerShares NASDAQ Internet Portfolio (PNQI)
Table of Contents
The Market Environment | 2 | ||||||
Manager's Analysis | 4 | ||||||
Frequency Distribution of Discounts & Premiums | 24 | ||||||
Fees and Expenses | 26 | ||||||
Sector Portfolios | |||||||
Schedules of Investments | |||||||
PowerShares Dynamic Basic Materials Sector Portfolio (PYZ) | 28 | ||||||
PowerShares Dynamic Consumer Discretionary Sector Portfolio (PEZ) | 30 | ||||||
PowerShares Dynamic Consumer Staples Sector Portfolio (PSL) | 32 | ||||||
PowerShares Dynamic Energy Sector Portfolio (PXI) | 33 | ||||||
PowerShares Dynamic Financial Sector Portfolio (PFI) | 34 | ||||||
PowerShares Dynamic Healthcare Sector Portfolio (PTH) | 36 | ||||||
PowerShares Dynamic Industrials Sector Portfolio (PRN) | 37 | ||||||
PowerShares Dynamic Technology Sector Portfolio (PTF) | 39 | ||||||
PowerShares Dynamic Utilities Portfolio (PUI) | 40 | ||||||
PowerShares NASDAQ Internet Portfolio (PNQI) | 41 | ||||||
Statements of Assets and Liabilities | 44 | ||||||
Statements of Operations | 46 | ||||||
Statements of Changes in Net Assets | 48 | ||||||
Financial Highlights | 52 | ||||||
Notes to Financial Statements | 57 | ||||||
Report of Independent Registered Public Accounting Firm | 70 | ||||||
Tax Information | 71 | ||||||
Trustees and Officers | 72 | ||||||
Board Considerations Regarding Approval of Continuation of Investment Advisory Agreements | 79 | ||||||
The Market Environment
Domestic Equity:
Equity markets were volatile during the fiscal year ended April 30, 2012, but the broad market, as measured by the S&P 500® Index, still managed to post a small gain. While corporate earnings remained strong, investor enthusiasm was tempered by continuing high unemployment, sluggish consumer spending and soft housing data for most of the year. Although markets stabilized and remained generally positive in the spring and early summer, major equity indices sold off precipitously in August as the U.S. government struggled to raise the nation's debt ceiling. This led credit rating agency Standard & Poor's to announce its first-ever ratings downgrade to long-term U.S. government debt. Uncertainty created by the downgrade, combined with continuing concern about the debt crisis in the eurozone, reignited fears of a recession and pressured markets downward into the fall. As signs of muted but sustained economic growth mounted, equity markets moved off their October lows and posted strong gains through the close of the reporting period with the S&P 500® Index returning 12.8% from the end of October 2011 to the end of April 2012.
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 generally correspond (before fees and expenses) to the price and yield of the Dynamic Basic Materials Sector IntellidexSM Index (the "Index"). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index. The Index thoroughly evaluates companies based on a variety of investment merit criteria, including: price momentum, earnings momentum, quality, management action and value. The Index is comprised of stocks of 60 U.S. basic materials companies. These are companies that are principally engaged in the business of producing raw materials, including paper or wood products, chemicals, construction materials and mining and metals.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned (4.88)%. On a Net Asset Value ("NAV") basis, the Fund returned (4.76)%. During the same reporting period, the Index returned (3.92)%, the S&P Materials Index returned (6.88)%, the Dow Jones U.S. Basic Materials Index returned (14.43)% and the S&P 500® Index returned 4.73%. The Fund benefited most from positive performance of securities of companies in the containers and packaging and chemicals industries. The Fund was hurt most from negative performance of securities of companies in the metals and mining industries.
At the single stock level, the Fund benefited most from exposure to Sherwin-Williams Co. (portfolio average weight of 1.26%), CF Industries Holdings Inc. (portfolio average weight of 2.47%), and Airgas, Inc. (portfolio average weight of 1.41%). The leading detractors to the Fund were Walter Energy, Inc., Ferro Corp., and Mosaic Co. (The) (these stocks were no longer held at April 30, 2012).
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Chemicals-Specialty | 21.0 | ||||||
Chemicals-Diversified | 20.4 | ||||||
Paper & Related Products | 9.0 | ||||||
Steel-Producers | 7.7 | ||||||
Coatings/Paint | 5.8 | ||||||
Metal-Copper | 4.6 | ||||||
Agricultural Chemicals | 4.2 | ||||||
Containers-Metal/Glass | 3.9 | ||||||
Industrial Gases | 2.8 | ||||||
Containers-Paper/Plastic | 2.7 | ||||||
Diversified Manufacturing Operations | 2.7 | ||||||
Chemicals-Plastics | 2.5 | ||||||
Metal-Iron | 2.3 | ||||||
Chemicals-Other | 1.9 | ||||||
Gold Mining | 1.9 | ||||||
Rubber/Plastic Products | 1.6 | ||||||
Coal | 1.4 | ||||||
Metal Processors & Fabricators | 1.3 | ||||||
Metal-Aluminum | 1.3 | ||||||
Precious Metals | 1.0 | ||||||
Money Market Fund | 0.2 | ||||||
Liabilities in excess of other assets | (0.2 | ) |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
Sherwin-Williams Co. (The) | 2.9 | ||||||
PPG Industries, Inc. | 2.8 | ||||||
FMC Corp. | 2.8 | ||||||
Airgas, Inc. | 2.8 | ||||||
CF Industries Holdings, Inc. | 2.6 | ||||||
Ball Corp. | 2.6 | ||||||
E.I. du Pont de Nemours & Co. | 2.6 | ||||||
International Paper Co. | 2.5 | ||||||
Eastman Chemical Co. | 2.5 | ||||||
Celanese Corp., Series A | 2.4 | ||||||
Total | 26.5 |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Mid-Cap Value | 31.8 | ||||||
Small-Cap Value | 20.4 | ||||||
Large-Cap Value | 17.3 | ||||||
Small-Cap Growth | 14.7 | ||||||
Mid-Cap Growth | 13.9 | ||||||
Large-Cap Growth | 1.9 |
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, 2012 | ||||||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Dynamic Basic Materials Sector IntellidexSM Index | (3.92 | )% | 26.94 | % | 6.38 | % | 10.13 | % | 70.81 | % | |||||||||||||
S&P Materials Index | (6.88 | )% | 16.97 | % | 1.59 | % | 5.38 | % | 33.98 | % | |||||||||||||
Dow Jones U.S. Basic Materials Index | (14.43 | )% | 21.66 | % | 3.34 | % | 7.30 | % | 48.23 | % | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 2.99 | % | 17.88 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | (4.76 | )% | 25.91 | % | 5.38 | % | 9.09 | % | 62.01 | % | |||||||||||||
Share Price Return | (4.88 | )% | 25.85 | % | 5.33 | % | 9.07 | % | 61.90 | % |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.79%. The Financial Highlights section of this Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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 U.S. 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 30, 152 and 500 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from 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 generally correspond (before fees and expenses) to the price and yield of the Dynamic Consumer Discretionary Sector IntellidexSM Index (the "Index"). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index. The Index thoroughly evaluates companies based on a variety of investment merit criteria, including: price momentum, earnings momentum, quality, management action and value. The Index is comprised of stocks of 60 U.S. consumer companies. These are companies that are principally engaged in the businesses of providing consumer goods and services that are cyclical in nature, including retail, automotive, leisure and recreation, media and real estate.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned 9.41%. On a Net Asset Value ("NAV") basis, the Fund returned 9.41%. During the same reporting period, the Index returned 10.27%, while the S&P Consumer Discretionary Index returned 14.55% and the S&P 500® Index returned 4.73%. The Fund benefited most from positive performance of securities of companies in specialty retail, leisure equipment & products, and multiline retail industries. The Fund was hurt most from negative performance of securities of companies in auto parts & equipment, textiles apparel & luxury goods, and media industries.
At the single stock level, the Fund benefited most from exposure to Sturm Ruger & Co., Inc. (portfolio average weight of 1.34%), Dollar Tree, Inc. (portfolio average weight of 2.52%), and Macy's, Inc. (portfolio average weight of 2.38%). The leading detractors to the Fund were Wynn Resorts Ltd., Red Robin Gourmet Burgers, Inc., and Wet Seal, Inc. (The) (these stocks were no longer held at April 30, 2012).
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Retail | 52.3 | ||||||
Media | 10.4 | ||||||
Home Furnishings | 4.9 | ||||||
Commercial Services | 4.8 | ||||||
Entertainment | 4.4 | ||||||
Distribution/Wholesale | 3.7 | ||||||
Apparel | 3.5 | ||||||
Auto Parts & Equipment | 3.3 | ||||||
Leisure Time | 3.0 | ||||||
Miscellaneous Manufacturing | 2.9 | ||||||
Electronics | 2.3 | ||||||
Toys/Games/Hobbies | 1.7 | ||||||
Lodging | 1.5 | ||||||
Advertising | 1.3 | ||||||
Money Market Fund | 0.5 | ||||||
Liabilities in excess of other assets | (0.5 | ) |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
Gap, Inc. (The) | 3.0 | ||||||
O'Reilly Automotive, Inc. | 2.9 | ||||||
Ross Stores, Inc. | 2.8 | ||||||
TJX Cos., Inc. (The) | 2.8 | ||||||
Dollar Tree, Inc. | 2.8 | ||||||
DISH Network Corp., Class A | 2.6 | ||||||
Yum! Brands, Inc. | 2.6 | ||||||
Macy's, Inc. | 2.6 | ||||||
Home Depot, Inc. (The) | 2.6 | ||||||
AutoZone, Inc. | 2.6 | ||||||
Total | 27.3 |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Small-Cap Value | 23.7 | ||||||
Large-Cap Growth | 21.6 | ||||||
Small-Cap Growth | 17.9 | ||||||
Mid-Cap Growth | 16.0 | ||||||
Mid-Cap Value | 10.7 | ||||||
Large-Cap Value | 10.1 |
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, 2012 | ||||||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Dynamic Consumer Discretionary Sector IntellidexSM Index | 10.27 | % | 22.17 | % | 2.12 | % | 4.27 | % | 26.11 | % | |||||||||||||
S&P Consumer Discretionary Index | 14.55 | % | 27.30 | % | 4.99 | % | 6.64 | % | 43.17 | % | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 2.99 | % | 17.88 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | 9.41 | % | 21.25 | % | 1.56 | % | 3.68 | % | 22.21 | % | |||||||||||||
Share Price Return | 9.41 | % | 21.24 | % | 1.54 | % | 3.68 | % | 22.21 | % |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 1.24%. The Financial Highlights section of this Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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 Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from 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 generally correspond (before fees and expenses) to the price and yield of the Dynamic Consumer Staples Sector IntellidexSM Index (the "Index"). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index. The Index thoroughly evaluates companies based on a variety of investment merit criteria, including: price momentum, earnings momentum, quality, management action and value. The Index is comprised of stocks of 60 U.S. consumer staples companies. These are companies that are principally engaged in the businesses of providing consumer goods and services that have non-cyclical characteristics, including tobacco, textiles, food and beverage, and non-discretionary retail.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned 5.47%. On a Net Asset Value ("NAV") basis, the Fund returned 5.53%. During the same reporting period, the Index returned 6.24%, while the S&P Consumer Staples Index returned 11.83% and the S&P 500® Index returned 4.73%. The Fund benefited most from positive performance of securities of companies in tobacco, personal products, and food & staples retailing industries. The Fund was hurt most from negative performance of securities of companies in food products, industrial conglomerates, and specialty retail industries.
At the single stock level, the Fund benefited most from exposure to PriceSmart, Inc. (portfolio average weight of 1.56%), Monster Beverage Corp. (portfolio average weight of 1.48%), and Estee Lauder Cos., Inc. (portfolio average weight of 2.55%). The leading detractors to the Fund were Diamond Foods, Inc., Chiquita Brands International Inc., and Green Mountain Coffee Roasters, Inc. (these stocks were no longer held at April 30, 2012).
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Food | 38.2 | ||||||
Agriculture | 17.0 | ||||||
Retail | 14.7 | ||||||
Beverages | 12.5 | ||||||
Cosmetics/Personal Care | 7.9 | ||||||
Household Products/Wares | 5.5 | ||||||
Pharmaceuticals | 2.9 | ||||||
Electrical Components & Equipment | 1.3 | ||||||
Money Market Fund | 0.3 | ||||||
Liabilities in excess of other assets | (0.3 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Large-Cap Value | 28.8 | ||||||
Small-Cap Value | 25.7 | ||||||
Large-Cap Growth | 19.6 | ||||||
Mid-Cap Value | 14.8 | ||||||
Mid-Cap Growth | 6.9 | ||||||
Small-Cap Growth | 4.2 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
Estee Lauder Cos., Inc. (The), Class A | 2.9 | ||||||
Coca-Cola Co. (The) | 2.8 | ||||||
Kimberly-Clark Corp. | 2.7 | ||||||
Philip Morris International, Inc. | 2.7 | ||||||
Altria Group, Inc. | 2.7 | ||||||
Kraft Foods, Inc., Class A | 2.6 | ||||||
Costco Wholesale Corp. | 2.6 | ||||||
PepsiCo, Inc. | 2.6 | ||||||
General Mills, Inc. | 2.5 | ||||||
CVS Caremark Corp. | 2.5 | ||||||
Total | 26.6 |
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, 2012 | ||||||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Dynamic Consumer Staples Sector IntellidexSM Index | 6.24 | % | 19.02 | % | 5.34 | % | 7.15 | % | 46.69 | % | |||||||||||||
S&P Consumer Staples Index | 11.83 | % | 19.63 | % | 7.67 | % | 8.55 | % | 58.14 | % | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 2.99 | % | 17.88 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | 5.53 | % | 18.16 | % | 4.59 | % | 6.40 | % | 41.05 | % | |||||||||||||
Share Price Return | 5.47 | % | 18.19 | % | 4.57 | % | 6.39 | % | 40.98 | % |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.94%. The Financial Highlights section of this Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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 42 and 500 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from 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 generally correspond (before fees and expenses) to the price and yield of the Dynamic Energy Sector IntellidexSM Index (the "Index"). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index. The Index thoroughly evaluates companies based on a variety of investment merit criteria, including: price momentum, earnings momentum, quality, management action, and value. The Index is comprised of stocks of 60 U.S. energy companies. These are companies that are principally engaged in the business of producing, distributing or serving energy-related products, including oil and gas exploration and production, refining, oil services, pipeline, and solar, wind, and other non-oil based energy.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned (8.78)%. On a Net Asset Value ("NAV") basis, the Fund returned (8.79)%. During the same reporting period, the Index returned (8.16)%, while the S&P Energy Index returned (9.11)%, the Dow Jones U.S. Oil & Gas Index returned (9.12)% and the S&P 500® Index returned 4.73%. The Fund was hurt from negative performance of securities of companies within each industry in which it was invested.
At the single stock level, the Fund benefited most from exposure to El Paso Corp. (no longer held at April 30, 2012), CVR Energy, Inc. (portfolio average weight of 1.46%), and Hornbeck Offshore Services, Inc. (portfolio average weight of 1.38%). The leading detractors to the Fund were Halliburton Co., Hess Corp., and Patterson-UTI Energy, Inc. (these stocks were no longer held at April 30, 2012).
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Pipelines | 26.7 | ||||||
Oil Companies-Exploration & Production | 20.5 | ||||||
Oil Companies-Integrated | 15.1 | ||||||
Oil-Field Services | 11.3 | ||||||
Oil Refining & Marketing | 10.2 | ||||||
Oil & Gas Drilling | 5.9 | ||||||
Coal | 3.9 | ||||||
Oil Field Machinery & Equipment | 2.4 | ||||||
Retail-Petroleum Products | 1.5 | ||||||
Transportation-Services | 1.5 | ||||||
Energy-Alternate Sources | 1.0 | ||||||
Money Market Fund | 0.1 | ||||||
Liabilities in excess of other assets | (0.1 | ) |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
Kinder Morgan, Inc. | 2.9 | ||||||
Valero Energy Corp. | 2.7 | ||||||
Plains All American Pipeline LP | 2.7 | ||||||
Enterprise Products Partners LP | 2.7 | ||||||
Exxon Mobil Corp. | 2.7 | ||||||
Chevron Corp. | 2.7 | ||||||
Marathon Petroleum Corp. | 2.6 | ||||||
Spectra Energy Corp. | 2.6 | ||||||
ConocoPhillips | 2.6 | ||||||
Williams Partners LP | 2.5 | ||||||
Total | 26.7 |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Large-Cap Value | 25.5 | ||||||
Small-Cap Value | 22.1 | ||||||
Mid-Cap Value | 19.7 | ||||||
Small-Cap Growth | 13.6 | ||||||
Large-Cap Growth | 10.6 | ||||||
Mid-Cap Growth | 8.5 |
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, 2012 | ||||||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Dynamic Energy Sector IntellidexSM Index | (8.16 | )% | 28.51 | % | 6.06 | % | 9.65 | % | 66.69 | % | |||||||||||||
S&P Energy Index | (9.11 | )% | 16.80 | % | 3.77 | % | 6.72 | % | 43.75 | % | |||||||||||||
Dow Jones U.S. Oil & Gas Index | (9.12 | )% | 16.52 | % | 3.82 | % | 6.97 | % | 45.68 | % | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 2.99 | % | 17.88 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | (8.79 | )% | 27.59 | % | 5.45 | % | 9.01 | % | 61.38 | % | |||||||||||||
Share Price Return | (8.78 | )% | 27.59 | % | 5.45 | % | 9.03 | % | 61.59 | % |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.74%. The Financial Highlights section of this Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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 U.S. 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 43, 91 and 500 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from 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 generally correspond (before fees and expenses) to the price and yield of the Dynamic Financial Sector IntellidexSM Index (the "Index"). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index. The Index thoroughly evaluates companies based on a variety of investment merit criteria, including: price momentum, earnings momentum, quality, management action and value. The Index is comprised of stocks of 60 U.S. financial services companies. These are companies that are principally engaged in the business of providing financial services and products, including banking, investment services, insurance and real estate finance services.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned (0.66)%. On a Net Asset Value ("NAV") basis, the Fund returned (0.66)%. During the same reporting period, the Index returned 0.07%, while the S&P 500® Financials Index returned (4.10)%, the Dow Jones U.S. Financials Index returned (0.97)% and the S&P 500® Index returned 4.73%. The Fund benefited most from positive performance of securities of companies in commercial banks, thrifts & mortgage finance, and diversified financial services industries. The Fund was hurt most from negative performance of securities of companies in capital markets, insurance, and real estate management & development industries.
At the single stock level, the Fund benefited most from exposure to Advance America Cash Advance Centers, Inc. (no longer held at April 30, 2012), U.S. Bancorp (portfolio average weight of 1.94%), and Discover Financial Services (portfolio average weight of 2.5%). The leading detractors to the Fund were CBRE Group, Inc. (no longer held at April 30, 2012), SLM Corp. (portfolio average weight of 1.60%), and Ameriprise Financial, Inc. (no longer held at April 30, 2012).
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Life/Health Insurance | 14.2 | ||||||
Commercial Banks-Southern U.S. | 12.3 | ||||||
Multi-line Insurance | 11.6 | ||||||
Property/Casualty Insurance | 11.2 | ||||||
Investment Management/Advisor Services | 9.2 | ||||||
Commercial Banks-Central U.S. | 8.2 | ||||||
Finance-Credit Card | 5.6 | ||||||
Finance-Consumer Loans | 5.0 | ||||||
Commercial Banks-Western U.S. | 4.1 | ||||||
Super-Regional Banks-U.S. | 2.8 | ||||||
Commercial Services-Finance | 2.6 | ||||||
REITs-Diversified | 2.5 | ||||||
Commercial Banks-Eastern U.S. | 2.5 | ||||||
Finance-Other Services | 2.4 | ||||||
S&L/Thrifts-Eastern U.S. | 1.6 | ||||||
Insurance Brokers | 1.5 | ||||||
Fiduciary Banks | 1.4 | ||||||
Finance-Auto Loans | 1.3 | ||||||
Liabilities in excess of other assets | 0.0 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
American Express Co. | 2.8 | ||||||
Discover Financial Services | 2.8 | ||||||
U.S. Bancorp | 2.8 | ||||||
BB&T Corp. | 2.7 | ||||||
CNA Financial Corp. | 2.7 | ||||||
Moody's Corp. | 2.6 | ||||||
ACE Ltd. | 2.6 | ||||||
T. Rowe Price Group, Inc. | 2.6 | ||||||
American Tower Corp. REIT | 2.5 | ||||||
Invesco Ltd. | 2.5 | ||||||
Total | 26.6 |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Small-Cap Value | 31.0 | ||||||
Mid-Cap Value | 17.7 | ||||||
Large-Cap Value | 15.2 | ||||||
Small-Cap Growth | 14.1 | ||||||
Large-Cap Growth | 13.5 | ||||||
Mid-Cap Growth | 8.5 |
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, 2012 | ||||||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Dynamic Financial Sector IntellidexSM Index | 0.07 | % | 13.75 | % | (3.41 | )% | (2.05 | )% | (10.83 | )% | |||||||||||||
S&P 500® Financials Index | (4.10 | )% | 14.26 | % | (14.13 | )% | (11.50 | )% | (49.44 | )% | |||||||||||||
Dow Jones U.S. Financials Index | (0.97 | )% | 15.48 | % | (11.26 | )% | (11.19 | )% | (48.44 | )% | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 2.99 | % | 17.88 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | (0.66 | )% | 12.73 | % | (4.21 | )% | (2.83 | )% | (14.75 | )% | |||||||||||||
Share Price Return | (0.66 | )% | 12.79 | % | (4.23 | )% | (2.84 | )% | (14.75 | )% |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 1.30% including estimated acquired fund fees and expenses of 0.01%. The Financial Highlights section of this Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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® Financials Index, Dow Jones U.S. 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 81, 818 and 500 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from 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 generally correspond (before fees and expenses) to the price and yield of the Dynamic Healthcare Sector IntellidexSM Index (the "Index"). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index. The Index thoroughly evaluates companies based on a variety of investment merit criteria, including price momentum, earnings momentum, quality, management action, and value. The Index is comprised of stocks of 60 U.S. healthcare companies. These are companies that are principally engaged in the business of providing healthcare-related products and services, including biotechnology, pharmaceuticals, medical technology and supplies, and facilities.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned 2.74%. On a Net Asset Value ("NAV") basis, the Fund returned 2.80%. During the same reporting period, the Index returned 3.55%, while the S&P Health Care Index returned 9.05%, the Dow Jones U.S. Healthcare Index returned 8.32% and the S&P 500® Index returned 4.73%. The Fund benefited most from positive performance of securities of companies in the pharmaceuticals and biotechnology industries. The Fund was hurt most from negative performance of securities of companies in health care providers & services and life sciences tools & services industries.
At the single stock level, the Fund benefited most from exposure to Questcor Pharmaceuticals, Inc. (portfolio average weight of 1.54%), Intuitive Surgical, Inc. (portfolio average weight of 1.74%), and Spectrum Pharmaceuticals Inc. (no longer held at April 30, 2012). The leading detractors to the Fund were Depomed, Inc., Healthways, Inc., and Agilent Technologies, Inc. (these stocks were no longer held at April 30, 2012).
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Pharmaceuticals | 25.9 | ||||||
Healthcare-Products | 24.3 | ||||||
Healthcare-Services | 23.4 | ||||||
Biotechnology | 14.7 | ||||||
Software | 3.5 | ||||||
Commercial Services | 2.7 | ||||||
Electronics | 2.7 | ||||||
Distribution/Wholesale | 1.4 | ||||||
Internet | 1.4 | ||||||
Money Market Fund | 0.4 | ||||||
Liabilities in excess of other assets | (0.4 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Small-Cap Growth | 28.3 | ||||||
Mid-Cap Growth | 18.5 | ||||||
Large-Cap Growth | 16.1 | ||||||
Large-Cap Value | 14.9 | ||||||
Small-Cap Value | 11.7 | ||||||
Mid-Cap Value | 10.5 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
Gilead Sciences, Inc. | 2.8 | ||||||
Intuitive Surgical, Inc. | 2.8 | ||||||
McKesson Corp. | 2.8 | ||||||
Cerner Corp. | 2.7 | ||||||
Allergan, Inc. | 2.7 | ||||||
Forest Laboratories, Inc. | 2.7 | ||||||
Alexion Pharmaceuticals, Inc. | 2.6 | ||||||
WellPoint, Inc. | 2.5 | ||||||
Bristol-Myers Squibb Co. | 2.5 | ||||||
Zimmer Holdings, Inc. | 2.5 | ||||||
Total | 26.6 |
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, 2012 | ||||||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Dynamic Healthcare Sector IntellidexSM Index | 3.55 | % | 22.88 | % | 3.32 | % | 5.57 | % | 35.11 | % | |||||||||||||
S&P Health Care Index | 9.05 | % | 18.28 | % | 2.91 | % | 4.34 | % | 26.74 | % | |||||||||||||
Dow Jones U.S. Healthcare Index | 8.32 | % | 18.92 | % | 3.89 | % | 5.20 | % | 32.72 | % | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 2.99 | % | 17.88 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | 2.80 | % | 21.91 | % | 2.54 | % | 4.78 | % | 29.60 | % | |||||||||||||
Share Price Return | 2.74 | % | 21.99 | % | 2.54 | % | 4.79 | % | 29.64 | % |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.84%. The Financial Highlights section of this Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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 U.S. 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 performance of approximately 51, 478 and 500 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from 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 generally correspond (before fees and expenses) to the price and yield of the Dynamic Industrial Sector IntellidexSM Index (the "Index"). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index. The Index thoroughly evaluates companies based on a variety of investment merit criteria, including: price momentum, earnings momentum, quality, management action and value. The Index is comprised of stocks of 60 U.S. industrial companies. These are companies that are principally engaged in the business of providing industrial products and services, including engineering heavy machinery, construction, electrical equipment, aerospace and defense and general manufacturing.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned (7.00)%. On a Net Asset Value ("NAV") basis, the Fund returned (6.91)%. During the same reporting period, the Index returned (5.81)%, while the S&P Industrials Index returned (2.05)%, the Dow Jones U.S. Industrials Index returned (0.92)% and the S&P 500® Index returned 4.73%. The Fund benefited most from positive performance of securities of companies in industrial conglomerates, professional services, and airlines industries. The Fund was hurt most from negative performance of securities of companies in machinery, construction & engineering, and commercial services & supplies industries.
At the single stock level, the Fund benefited most from exposure to Delta Air Lines, Inc. (portfolio average weight of 1.11%), RailAmerica, Inc. (no longer held at April 30, 2012), and W.W. Grainger, Inc. (portfolio average weight of 1.71%). The leading detractors to the Fund were Southwest Airlines Co. (portfolio average weight of 0.97%), Timken Co. (no longer held at April 30, 2012), and Caterpillar, Inc. (no longer held at April 30, 2012).
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Aerospace/Defense | 18.1 | ||||||
Transportation | 16.9 | ||||||
Commercial Services | 15.9 | ||||||
Airlines | 15.8 | ||||||
Machinery-Diversified | 8.7 | ||||||
Miscellaneous Manufacturing | 6.1 | ||||||
Electronics | 2.8 | ||||||
Electrical Components & Equipment | 2.6 | ||||||
Engineering & Construction | 2.6 | ||||||
Distribution/Wholesale | 2.5 | ||||||
Textiles | 1.6 | ||||||
Metal Fabricate/Hardware | 1.3 | ||||||
Trucking & Leasing | 1.3 | ||||||
Computers | 1.3 | ||||||
Hand/Machine Tools | 1.3 | ||||||
Holding Companies-Diversified | 1.2 | ||||||
Money Market Fund | 0.3 | ||||||
Liabilities in excess of other assets | (0.3 | ) |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
Delta Air Lines, Inc. | 2.9 | ||||||
Tyco International Ltd. | 2.8 | ||||||
TransDigm Group, Inc. | 2.7 | ||||||
United Continental Holdings, Inc. | 2.7 | ||||||
Northrop Grumman Corp. | 2.7 | ||||||
L-3 Communications Holdings, Inc. | 2.6 | ||||||
United Parcel Service, Inc., Class B | 2.6 | ||||||
Lockheed Martin Corp. | 2.5 | ||||||
W.W. Grainger, Inc. | 2.5 | ||||||
Union Pacific Corp. | 2.5 | ||||||
Total | 26.5 |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Small-Cap Value | 26.4 | ||||||
Small-Cap Growth | 23.4 | ||||||
Mid-Cap Growth | 15.7 | ||||||
Large-Cap Value | 13.0 | ||||||
Mid-Cap Value | 11.6 | ||||||
Large-Cap Growth | 9.9 |
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, 2012 | ||||||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Dynamic Industrial Sector IntellidexSM Index | (5.81 | )% | 19.12 | % | 2.22 | % | 4.55 | % | 27.99 | % | |||||||||||||
S&P Industrials Index | (2.05 | )% | 21.62 | % | 1.29 | % | 3.26 | % | 19.60 | % | |||||||||||||
Dow Jones U.S. Industrials Index | (0.92 | )% | 22.45 | % | 2.36 | % | 4.73 | % | 29.42 | % | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 2.99 | % | 17.88 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | (6.91 | )% | 17.94 | % | 1.30 | % | 3.64 | % | 21.91 | % | |||||||||||||
Share Price Return | (7.00 | )% | 17.97 | % | 1.28 | % | 3.63 | % | 21.88 | % |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.88%. The Financial Highlights section of this Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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 U.S. 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 61, 241 and 500 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from 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 generally correspond (before fees and expenses) to the price and yield of the Dynamic Technology Sector IntellidexSM Index (the "Index"). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index. The Index thoroughly evaluates companies based on a variety of investment merit criteria, including: price momentum, earnings momentum, quality, management action and value. The Index is comprised of stocks of 60 U.S. technology companies. These are companies that are principally engaged in business of providing technology-related products and services, including computer hardware and software, Internet, electronics and semiconductors and communication technologies.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned (1.34)%. On a Net Asset Value ("NAV") basis, the Fund returned (1.34)%. During the same reporting period, the Index returned (0.63)%, while the S&P 500® Information Technology Index returned 14.59%, the Dow Jones U.S. Technology Index returned 12.02% and the S&P 500® Index returned 4.73%. The Fund benefited most from positive performance of securities of companies in computers & peripherals, IT services, and internet software & services industries. The Fund was hurt most from negative performance of securities of companies in semiconductors & semiconductor equipment, electronic equipment instruments & components, and communications equipment industries.
At the single stock level, the Fund benefited most from exposure to Seagate Technology PLC (portfolio average weight of 1.11%), Liquidity Services, Inc. (portfolio average weight of 1.04%), and MasterCard, Inc. (portfolio average weight of 2.34%). The leading detractors to the Fund were Atmel Corp., TeleNav, Inc., and Micron Technology, Inc., (these securities are no longer held at April 30, 2012).
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Computers | 22.7 | ||||||
Software | 17.1 | ||||||
Commercial Services | 13.4 | ||||||
Electronics | 11.7 | ||||||
Internet | 11.4 | ||||||
Semiconductors | 9.5 | ||||||
Telecommunications | 8.9 | ||||||
Banks | 1.4 | ||||||
Distribution/Wholesale | 1.4 | ||||||
Home Furnishings | 1.3 | ||||||
Machinery-Diversified | 1.2 | ||||||
Money Market Fund | 0.3 | ||||||
Liabilities in excess of other assets | (0.3 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Small-Cap Growth | 28.6 | ||||||
Large-Cap Growth | 28.0 | ||||||
Small-Cap Value | 15.6 | ||||||
Mid-Cap Growth | 14.9 | ||||||
Mid-Cap Value | 8.9 | ||||||
Large-Cap Value | 4.0 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
Seagate Technology PLC | 2.7 | ||||||
Apple, Inc. | 2.7 | ||||||
KLA-Tencor Corp. | 2.7 | ||||||
MasterCard, Inc., Class A | 2.7 | ||||||
Intel Corp. | 2.6 | ||||||
Activision Blizzard, Inc. | 2.6 | ||||||
Alliance Data Systems Corp. | 2.6 | ||||||
F5 Networks, Inc. | 2.6 | ||||||
International Business Machines Corp. | 2.6 | ||||||
Visa, Inc., Class A | 2.6 | ||||||
Total | 26.4 |
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, 2012 | ||||||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Dynamic Technology Sector IntellidexSM Index | (0.63 | )% | 17.32 | % | 0.37 | % | 1.92 | % | 11.13 | % | |||||||||||||
S&P 500® Information Technology Index | 14.59 | % | 22.99 | % | 6.62 | % | 7.87 | % | 52.66 | % | |||||||||||||
Dow Jones U.S. Technology Index | 12.02 | % | 23.21 | % | 6.93 | % | 8.16 | % | 54.98 | % | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 2.99 | % | 17.88 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | (1.34 | )% | 16.45 | % | (0.33 | )% | 1.21 | % | 6.91 | % | |||||||||||||
Share Price Return | (1.34 | )% | 16.44 | % | (0.35 | )% | 1.20 | % | 6.87 | % |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.91%. The Financial Highlights section of this Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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® Information Technology Index, Dow Jones U.S. 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 71, 484 and 500 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from the closest month-end to the Fund's inception date.
†† Average Annualized.
19
Manager's Analysis
PowerShares Dynamic Utilities Portfolio (ticker: PUI)
The PowerShares Dynamic Utilities Portfolio (the "Fund") seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dynamic Utilities IntellidexSM Index (the "Index"). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index. The Index thoroughly evaluates companies based on a variety of investment merit criteria, including: price momentum, earnings momentum, quality, management action and value. The Index is comprised of stocks of 60 U.S. utilities companies. These companies are principally engaged in providing energy, water, natural gas or telecommunications services.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned 0.02%. On a Net Asset Value ("NAV") basis, the Fund returned 0.26%. During the same reporting period, the Index returned 1.67%, while the S&P 500® Utilities Index returned 12.39%, the Dow Jones U.S. Utilities Index returned 14.30% and the S&P 500® Index returned 4.73%. The Fund benefited most from positive performance of securities of companies in multi-utilities, electric utilities, and media industries. The Fund was hurt most from negative performance of securities of companies in wireless telecommunication services, diversified telecommunication services, and software industries.
At the single stock level, the Fund benefited most from exposure to Crown Castle International Corp. (portfolio average weight of 2.37%), Comcast Corp. (no longer held at April 30, 2012), and Motorola Solutions, Inc. (portfolio average weight of 1.71%). The leading detractors to the Fund were Sprint Nextel Corp. (portfolio average weight of 1.89%), NII Holdings, Inc. (portfolio average weight of 1.23%), and Leap Wireless International, Inc. (portfolio average weight of 0.47%).
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Electric-Integrated | 49.4 | ||||||
Telephone-Integrated | 12.6 | ||||||
Wireless Equipment | 6.9 | ||||||
Telecommunication Services | 6.4 | ||||||
Gas-Distribution | 5.4 | ||||||
Cellular Telecommunications | 5.0 | ||||||
Cable/Satellite TV | 3.2 | ||||||
Internet Connectivity Services | 3.1 | ||||||
Networking Products | 2.5 | ||||||
Satellite Telecommunications | 1.5 | ||||||
Water | 1.4 | ||||||
Electronic Components-Miscellaneous | 1.3 | ||||||
Telecommunication Equipment | 1.3 | ||||||
Money Market Fund | 0.1 | ||||||
Liabilities in excess of other assets | (0.1 | ) |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
AT&T, Inc. | 2.7 | ||||||
Crown Castle International Corp. | 2.7 | ||||||
FirstEnergy Corp. | 2.7 | ||||||
NextEra Energy, Inc. | 2.6 | ||||||
Verizon Communications, Inc. | 2.6 | ||||||
Motorola Solutions, Inc. | 2.6 | ||||||
Southern Co. (The) | 2.6 | ||||||
American Electric Power Co., Inc. | 2.6 | ||||||
Public Service Enterprise Group, Inc. | 2.6 | ||||||
Xcel Energy, Inc. | 2.6 | ||||||
Total | 26.3 |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Large-Cap Value | 32.4 | ||||||
Mid-Cap Value | 20.6 | ||||||
Small-Cap Value | 18.8 | ||||||
Small-Cap Growth | 11.2 | ||||||
Large-Cap Growth | 10.5 | ||||||
Mid-Cap Growth | 6.5 |
20
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, 2012 | ||||||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Dynamic Utilities IntellidexSM Index | 1.67 | % | 13.54 | % | (0.09 | )% | 5.23 | % | 39.36 | % | |||||||||||||
S&P 500® Utilities Index | 12.39 | % | 16.45 | % | 1.08 | % | 6.08 | % | 46.74 | % | |||||||||||||
Dow Jones U.S. Utilities Index | 14.30 | % | 17.12 | % | 2.11 | % | 6.55 | % | 51.01 | % | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 4.46 | % | 32.80 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | 0.26 | % | 12.44 | % | (0.91 | )% | 4.40 | % | 32.36 | % | |||||||||||||
Share Price Return | 0.02 | % | 12.43 | % | (0.95 | )% | 4.39 | % | 32.27 | % |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.89%. The Financial Highlights section of this Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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® Utilities Index, Dow Jones U.S. 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 32, 67 and 500 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from the closest month-end to the Fund's inception date.
†† Average Annualized.
21
Manager's Analysis
PowerShares NASDAQ Internet Portfolio (ticker: PNQI)
The PowerShares NASDAQ Internet Portfolio (the "Fund") seeks investment results that generally correspond (before fees and expenses) to the price and yield of the NASDAQ Internet IndexSM (the "Index"). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index. The Index is designed to track the performance of the largest and most liquid U.S.-listed companies engaged in internet-related businesses and that are listed on one of the major U.S. stock exchanges. The Index employs a modified market capitalization-weighted methodology based on the market capitalization ranking of the Underlying Index securities.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned (0.77)%. On a Net Asset Value ("NAV") basis, the Fund returned (0.70)%. During the same reporting period, the Index returned (0.14)%, while the NASDAQ-100® Index returned 14.47% and the S&P 500® Index returned 4.73%. The Fund benefited most from positive performance of securities of companies in the consumer discretionary sector. The Fund was hurt most from negative performance of securities of companies in the information technology sector.
At the single stock level, the Fund benefited most from exposure to Priceline.com, Inc. (portfolio average weight of 8.41%), Equinix, Inc. (portfolio average weight of 3.16%), and eBay, Inc. (portfolio average weight of 8.30%). The leading detractors to the Fund were SINA Corp. (portfolio average weight of 3.15%), Netflix, Inc. (portfolio average weight of 3.33%), and Groupon, Inc. (portfolio average weight of 0.33%).
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Web Portals/ISP | 25.7 | ||||||
E-Commerce/Products | 24.3 | ||||||
E-Commerce/Services | 17.5 | ||||||
Web Hosting/Design | 8.5 | ||||||
Internet Security | 4.2 | ||||||
Computer Software | 3.5 | ||||||
E-Marketing/Information | 3.0 | ||||||
Internet Content-Entertainment | 2.4 | ||||||
Enterprise Software/Services | 1.7 | ||||||
Computer Services | 1.2 | ||||||
Internet Content-Information/News | 1.1 | ||||||
Internet Application Software | 1.1 | ||||||
Internet Incubators | 1.1 | ||||||
Internet Connectivity Services | 1.0 | ||||||
Printing-Commercial | 0.7 | ||||||
Internet Content-Information/Network | 0.6 | ||||||
Human Resources | 0.5 | ||||||
E-Services/Consulting | 0.5 | ||||||
Networking Products | 0.5 | ||||||
Communications Software | 0.4 | ||||||
Consulting Services | 0.4 | ||||||
Retail-Pet Food & Supplies | 0.1 | ||||||
Money Market Fund | 9.2 | ||||||
Liabilities in excess of other assets | (9.2 | ) |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
Amazon.com, Inc. | 9.9 | ||||||
Priceline.com, Inc. | 9.3 | ||||||
eBay, Inc. | 8.8 | ||||||
Google, Inc., Class A | 7.5 | ||||||
Baidu, Inc. ADR | 7.4 | ||||||
Yahoo!, Inc. | 4.0 | ||||||
Rackspace Hosting, Inc. | 3.9 | ||||||
Equinix, Inc. | 3.9 | ||||||
VeriSign, Inc. | 3.3 | ||||||
Akamai Technologies, Inc. | 3.0 | ||||||
Total | 61.0 |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Large-Cap Growth | 53.2 | ||||||
Mid-Cap Growth | 26.0 | ||||||
Small-Cap Growth | 16.8 | ||||||
Mid-Cap Value | 2.6 | ||||||
Small-Cap Value | 1.4 | ||||||
Large-Cap Value | — |
22
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, 2012 | ||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||
1 Year | 3 Years | Avg Ann†† | Cumulative | ||||||||||||||||
Index | |||||||||||||||||||
NASDAQ Internet IndexSM | (0.14 | )% | 32.74 | % | 15.55 | % | 75.29 | % | |||||||||||
NASDAQ-100® Index | 14.47 | % | 26.03 | % | 4.90 | % | 20.62 | % | |||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 2.20 | % | 8.89 | % | |||||||||||
Fund | |||||||||||||||||||
NAV Return | (0.70 | )% | 31.93 | % | 14.90 | % | 71.46 | % | |||||||||||
Share Price Return | (0.77 | )% | 31.95 | % | 14.44 | % | 68.79 | % |
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 or sold on the secondary market, may be worth more or less than their original cost. According to the Fund's current prospectus, the Fund's expense ratio of 0.60% is expressed as a unitary management 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 results that actual 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 Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from the closest month-end to the Fund's inception date.
†† Average Annualized.
23
Frequency Distribution of Discounts & Premiums
Since Inception through April 30, 2012
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 | 1,398 | 604 | 21 | 4 | — | — | — | ||||||||||||||||||||||||||||||
PEZ | PowerShares Dynamic Consumer Discretionary Sector Portfolio | 10/12/06 | 1,398 | 515 | 17 | 4 | — | — | 2 | ||||||||||||||||||||||||||||||
PSL | PowerShares Dynamic Consumer Staples Sector Portfolio | 10/12/06 | 1,398 | 515 | 15 | 6 | — | — | 2 | ||||||||||||||||||||||||||||||
PXI | PowerShares Dynamic Energy Sector Portfolio | 10/12/06 | 1,398 | 591 | 16 | 8 | 2 | — | — | ||||||||||||||||||||||||||||||
PFI | PowerShares Dynamic Financial Sector Portfolio | 10/12/06 | 1,398 | 548 | 27 | 8 | 1 | 1 | 1 | ||||||||||||||||||||||||||||||
PTH | PowerShares Dynamic Healthcare Sector Portfolio | 10/12/06 | 1,398 | 439 | 13 | 12 | — | — | — | ||||||||||||||||||||||||||||||
PRN | PowerShares Dynamic Industrials Sector Portfolio | 10/12/06 | 1,398 | 572 | 14 | 8 | — | — | 1 | ||||||||||||||||||||||||||||||
PTF | PowerShares Dynamic Technology Sector Portfolio | 10/12/06 | 1,398 | 516 | 57 | 9 | 1 | 1 | 1 | ||||||||||||||||||||||||||||||
PUI | PowerShares Dynamic Utilities Portfolio | 10/26/05 | 1,640 | 648 | 30 | 5 | 1 | 1 | 1 | ||||||||||||||||||||||||||||||
PNQI | PowerShares NASDAQ Internet Portfolio | 6/12/08 | 946 | 424 | 9 | 5 | 1 | 2 | 2 |
24
Closing Price Below NAV (bps) | |||||||||||||||||||||||||||
Ticker | 0-24 | -25-49 | -50-99 | -100-149 | -150-199 | -200+ | |||||||||||||||||||||
PYZ | 747 | 19 | 3 | — | — | — | |||||||||||||||||||||
PEZ | 848 | 10 | 1 | — | — | 1 | |||||||||||||||||||||
PSL | 850 | 9 | 1 | — | — | — | |||||||||||||||||||||
PXI | 759 | 14 | 6 | 1 | — | 1 | |||||||||||||||||||||
PFI | 776 | 23 | 6 | 4 | 2 | 1 | |||||||||||||||||||||
PTH | 922 | 12 | — | — | — | — | |||||||||||||||||||||
PRN | 788 | 15 | — | — | — | — | |||||||||||||||||||||
PTF | 791 | 18 | 2 | — | — | 2 | |||||||||||||||||||||
PUI | 934 | 18 | — | — | 1 | 1 | |||||||||||||||||||||
PNQI | 494 | 7 | 1 | — | — | 1 |
25
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, 2012.
In pursuing its investment objectives, PowerShares Dynamic Financial Sector Portfolio (the "Portfolio") may invest a portion of its assets in investment companies. The Fund indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Fund invests. The effect of such expenses are included in the Portfolio's total return.
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, 2011 | Ending Account Value April 30, 2012 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period (1) | ||||||||||||||||
PowerShares Dynamic Basic Materials Sector Portfolio (PYZ) Actual | $ | 1,000.00 | $ | 1,168.19 | 0.65 | % | $ | 3.50 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.63 | 0.65 | % | $ | 3.27 | |||||||||||
PowerShares Dynamic Consumer Discretionary Sector Portfolio (PEZ) Actual | $ | 1,000.00 | $ | 1,172.77 | 0.65 | % | $ | 3.51 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.63 | 0.65 | % | $ | 3.27 | |||||||||||
PowerShares Dynamic Consumer Staples Sector Portfolio (PSL) Actual | $ | 1,000.00 | $ | 1,076.62 | 0.65 | % | $ | 3.36 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.63 | 0.65 | % | $ | 3.27 |
26
Fees and Expenses (Continued)
Beginning Account Value November 1, 2011 | Ending Account Value April 30, 2012 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period (1) | ||||||||||||||||
PowerShares Dynamic Energy Sector Portfolio (PXI) Actual | $ | 1,000.00 | $ | 1,048.10 | 0.65 | % | $ | 3.31 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.63 | 0.65 | % | $ | 3.27 | |||||||||||
PowerShares Dynamic Financial Sector Portfolio (PFI) Actual | $ | 1,000.00 | $ | 1,133.88 | 0.65 | % | $ | 3.45 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.63 | 0.65 | % | $ | 3.27 | |||||||||||
PowerShares Dynamic Healthcare Sector Portfolio (PTH) Actual | $ | 1,000.00 | $ | 1,140.58 | 0.65 | % | $ | 3.46 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.63 | 0.65 | % | $ | 3.27 | |||||||||||
PowerShares Dynamic Industrials Sector Portfolio (PRN) Actual | $ | 1,000.00 | $ | 1,100.59 | 0.65 | % | $ | 3.39 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.63 | 0.65 | % | $ | 3.27 | |||||||||||
PowerShares Dynamic Technology Sector Portfolio (PTF) Actual | $ | 1,000.00 | $ | 1,132.84 | 0.65 | % | $ | 3.45 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.63 | 0.65 | % | $ | 3.27 | |||||||||||
PowerShares Dynamic Utilities Portfolio (PUI) Actual | $ | 1,000.00 | $ | 1,056.98 | 0.63 | % | $ | 3.22 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.73 | 0.63 | % | $ | 3.17 | |||||||||||
PowerShares NASDAQ Internet Portfolio (PNQI) Actual | $ | 1,000.00 | $ | 1,144.28 | 0.60 | % | $ | 3.20 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.88 | 0.60 | % | $ | 3.02 |
(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, 2012. Expenses are calculated by multiplying the Fund's annualized expense ratio by the average account value for the period, then multiplying the result by 182/366. Expense ratios for the most recent half-year may differ from expense ratios based on the annualized data in the Financial Highlights.
27
Schedule of Investments
PowerShares Dynamic Basic Materials Sector Portfolio (PYZ)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.0% | |||||||||||
Agricultural Chemicals—4.2% | |||||||||||
8,974 | CF Industries Holdings, Inc. | $ | 1,732,521 | ||||||||
4,085 | Terra Nitrogen Co. LP | 1,094,780 | |||||||||
2,827,301 | |||||||||||
Chemicals - Diversified—20.4% | |||||||||||
34,013 | Celanese Corp., Series A | 1,648,270 | |||||||||
61,822 | Chemtura Corp.(a) | 1,052,210 | |||||||||
32,362 | E.I. du Pont de Nemours & Co. | 1,730,073 | |||||||||
16,740 | FMC Corp. | 1,848,933 | |||||||||
65,377 | Huntsman Corp. | 925,738 | |||||||||
17,696 | Innophos Holdings, Inc. | 870,112 | |||||||||
29,794 | Innospec, Inc.(a) | 900,673 | |||||||||
41,995 | Olin Corp. | 880,215 | |||||||||
17,998 | PPG Industries, Inc. | 1,894,110 | |||||||||
16,610 | Rockwood Holdings, Inc.(a) | 919,197 | |||||||||
15,584 | Westlake Chemical Corp. | 996,597 | |||||||||
13,666,128 | |||||||||||
Chemicals - Other—1.9% | |||||||||||
51,744 | American Vanguard Corp. | 1,293,600 | |||||||||
Chemicals - Plastics—2.5% | |||||||||||
33,455 | A. Schulman, Inc. | 823,327 | |||||||||
63,617 | PolyOne Corp. | 881,732 | |||||||||
1,705,059 | |||||||||||
Chemicals - Specialty—21.0% | |||||||||||
13,581 | Albemarle Corp. | 886,839 | |||||||||
14,245 | Ashland, Inc. | 938,318 | |||||||||
21,909 | Cabot Corp. | 944,935 | |||||||||
15,366 | Cytec Industries, Inc. | 976,817 | |||||||||
30,675 | Eastman Chemical Co. | 1,655,530 | |||||||||
29,384 | H.B. Fuller Co. | 966,734 | |||||||||
21,925 | Hawkins, Inc. | 761,455 | |||||||||
31,125 | Kraton Performance Polymers, Inc.(a) | 809,250 | |||||||||
4,861 | NewMarket Corp. | 1,085,073 | |||||||||
30,043 | OM Group, Inc.(a) | 724,637 | |||||||||
23,814 | Sensient Technologies Corp. | 884,690 | |||||||||
10,448 | Stepan Co. | 949,305 | |||||||||
27,960 | Valhi, Inc. | 1,511,238 | |||||||||
15,840 | W.R. Grace & Co.(a) | 944,222 | |||||||||
14,039,043 | |||||||||||
Coal—1.4% | |||||||||||
62,250 | SunCoke Energy, Inc.(a) | 947,445 | |||||||||
Coatings/Paint—5.8% | |||||||||||
39,589 | Kronos Worldwide, Inc. | 939,843 | |||||||||
16,325 | Sherwin-Williams Co. (The) | 1,963,571 | |||||||||
19,456 | Valspar Corp. (The) | 995,174 | |||||||||
3,898,588 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
Containers - Metal/Glass—3.9% | |||||||||||
41,483 | Ball Corp. | $ | 1,732,330 | ||||||||
36,664 | Owens-Illinois, Inc.(a) | 852,438 | |||||||||
2,584,768 | |||||||||||
Containers - Paper/Plastic—2.7% | |||||||||||
28,883 | Bemis Co., Inc. | 935,520 | |||||||||
31,050 | Packaging Corp. of America | 906,350 | |||||||||
1,841,870 | |||||||||||
Diversified Manufacturing Operations—2.7% | |||||||||||
23,802 | Koppers Holdings, Inc. | 925,422 | |||||||||
25,190 | LSB Industries, Inc.(a) | 854,445 | |||||||||
1,779,867 | |||||||||||
Gold Mining—1.9% | |||||||||||
26,345 | Newmont Mining Corp. | 1,255,339 | |||||||||
Industrial Gases—2.8% | |||||||||||
20,158 | Airgas, Inc. | 1,847,279 | |||||||||
Metal Processors & Fabricators—1.3% | |||||||||||
14,020 | Haynes International, Inc. | 874,427 | |||||||||
Metal - Aluminum—1.3% | |||||||||||
79,984 | Noranda Aluminum Holding Corp. | 849,430 | |||||||||
Metal - Copper—4.6% | |||||||||||
37,505 | Freeport-McMoRan Copper & Gold, Inc. | 1,436,441 | |||||||||
49,618 | Southern Copper Corp. | 1,631,440 | |||||||||
3,067,881 | |||||||||||
Metal - Iron—2.3% | |||||||||||
24,268 | Cliffs Natural Resources, Inc. | 1,510,926 | |||||||||
Paper & Related Products—9.0% | |||||||||||
117,993 | Boise, Inc. | 901,467 | |||||||||
26,113 | Buckeye Technologies, Inc. | 846,322 | |||||||||
9,497 | Domtar Corp. | 830,798 | |||||||||
50,114 | International Paper Co. | 1,669,297 | |||||||||
57,178 | P.H. Glatfelter Co. | 890,833 | |||||||||
12,820 | Schweitzer-Mauduit International, Inc. | 869,452 | |||||||||
6,008,169 | |||||||||||
Precious Metals—1.0% | |||||||||||
31,640 | Coeur d'Alene Mines Corp.(a) | 681,842 | |||||||||
Rubber/Plastic Products—1.6% | |||||||||||
66,050 | Myers Industries, Inc. | 1,091,807 | |||||||||
Steel - Producers—7.7% | |||||||||||
17,415 | Carpenter Technology Corp. | 969,319 | |||||||||
67,590 | Metals USA Holdings Corp.(a) | 1,019,257 | |||||||||
37,548 | Nucor Corp. | 1,472,257 |
See Notes to Financial Statements.
28
Schedule of Investments (Continued)
PowerShares Dynamic Basic Materials Sector Portfolio (PYZ)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
16,419 | Reliance Steel & Aluminum Co. | $ | 917,658 | ||||||||
60,776 | Steel Dynamics, Inc. | 776,110 | |||||||||
5,154,601 | |||||||||||
Total Common Stocks and Other Equity Interests (Cost $61,949,774) | 66,925,370 | ||||||||||
Money Market Fund—0.2% | |||||||||||
107,568 | Goldman Sachs Financial Square Prime Obligations - Institutional Share Class (Cost $107,568) | 107,568 | |||||||||
Total Investments (Cost $62,057,342)—100.2% | 67,032,938 | ||||||||||
Liabilities in excess of other assets—(0.2%) | (109,407 | ) | |||||||||
Net Assets—100.0% | $ | 66,923,531 |
Notes to Schedule of Investments:
(a) Non-income producing security.
See Notes to Financial Statements.
29
Schedule of Investments
PowerShares Dynamic Consumer Discretionary Sector Portfolio (PEZ)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.0% | |||||||||||
Advertising—1.3% | |||||||||||
7,801 | Lamar Advertising Co., Class A(a) | $ | 248,228 | ||||||||
Apparel—3.5% | |||||||||||
6,138 | Coach, Inc. | 449,056 | |||||||||
4,946 | Oxford Industries, Inc. | 237,359 | |||||||||
686,415 | |||||||||||
Auto Parts & Equipment—3.3% | |||||||||||
5,465 | Dorman Products, Inc.(a) | 261,118 | |||||||||
9,870 | Standard Motor Products, Inc. | 148,741 | |||||||||
4,692 | Visteon Corp.(a) | 235,397 | |||||||||
645,256 | |||||||||||
Commercial Services—4.8% | |||||||||||
8,836 | Apollo Group, Inc., Class A(a) | 311,204 | |||||||||
9,436 | Bridgepoint Education, Inc.(a) | 203,440 | |||||||||
3,386 | ITT Educational Services, Inc.(a) | 223,544 | |||||||||
10,003 | Valassis Communications, Inc.(a) | 200,060 | |||||||||
938,248 | |||||||||||
Distribution/Wholesale—3.7% | |||||||||||
7,425 | Genuine Parts Co. | 480,992 | |||||||||
6,621 | Pool Corp. | 244,381 | |||||||||
725,373 | |||||||||||
Electronics—2.3% | |||||||||||
9,617 | Garmin Ltd. (Switzerland) | 453,249 | |||||||||
Entertainment—4.4% | |||||||||||
8,756 | Cedar Fair LP | 272,399 | |||||||||
4,592 | Churchill Downs, Inc. | 272,581 | |||||||||
16,864 | Shuffle Master, Inc.(a) | 297,987 | |||||||||
842,967 | |||||||||||
Home Furnishings—4.9% | |||||||||||
10,303 | Ethan Allen Interiors, Inc. | 239,030 | |||||||||
17,378 | La-Z-Boy, Inc.(a) | 261,886 | |||||||||
8,773 | Select Comfort Corp.(a) | 253,364 | |||||||||
3,243 | Tempur-Pedic International, Inc.(a) | 190,818 | |||||||||
945,098 | |||||||||||
Leisure Time—3.0% | |||||||||||
6,913 | Arctic Cat, Inc.(a) | 305,831 | |||||||||
10,401 | Brunswick Corp. | 273,442 | |||||||||
579,273 | |||||||||||
Lodging—1.5% | |||||||||||
5,708 | Wyndham Worldwide Corp. | 287,341 | |||||||||
Media—10.4% | |||||||||||
5,550 | AMC Networks, Inc., Class A(a) | 235,875 | |||||||||
16,041 | DISH Network Corp., Class A | 512,831 | |||||||||
16,521 | Gannett Co., Inc. | 228,320 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
15,924 | Knology, Inc.(a) | $ | 309,722 | ||||||||
10,038 | McGraw-Hill Cos., Inc. (The) | 493,568 | |||||||||
8,084 | Scholastic Corp. | 246,966 | |||||||||
2,027,282 | |||||||||||
Miscellaneous Manufacturing—2.9% | |||||||||||
10,775 | Hillenbrand, Inc. | 225,629 | |||||||||
5,758 | Sturm Ruger & Co., Inc. | 328,609 | |||||||||
554,238 | |||||||||||
Retail—52.3% | |||||||||||
2,971 | Advance Auto Parts, Inc. | 272,738 | |||||||||
15,065 | AFC Enterprises, Inc.(a) | 257,310 | |||||||||
9,838 | Asbury Automotive Group, Inc.(a) | 274,677 | |||||||||
13,300 | Ascena Retail Group, Inc.(a) | 272,384 | |||||||||
1,280 | AutoZone, Inc.(a) | 507,085 | |||||||||
12,847 | Bravo Brio Restaurant Group, Inc.(a) | 259,509 | |||||||||
9,454 | Brinker International, Inc. | 297,517 | |||||||||
2,935 | Buffalo Wild Wings, Inc.(a) | 246,100 | |||||||||
4,178 | Coinstar, Inc.(a) | 262,337 | |||||||||
4,499 | Cracker Barrel Old Country Store, Inc. | 258,782 | |||||||||
5,261 | Dollar Tree, Inc.(a) | 534,833 | |||||||||
8,811 | Foot Locker, Inc. | 269,528 | |||||||||
11,055 | GameStop Corp., Class A | 251,612 | |||||||||
20,467 | Gap, Inc. (The) | 583,310 | |||||||||
7,795 | GNC Holdings, Inc., Class A | 304,473 | |||||||||
5,190 | Hibbett Sports, Inc.(a) | 309,947 | |||||||||
9,835 | Home Depot, Inc. (The) | 509,355 | |||||||||
12,465 | Macy's, Inc. | 511,314 | |||||||||
4,592 | McDonald's Corp. | 447,490 | |||||||||
5,393 | O'Reilly Automotive, Inc.(a) | 568,746 | |||||||||
6,815 | Papa John's International, Inc.(a) | 274,508 | |||||||||
4,588 | PetSmart, Inc. | 267,297 | |||||||||
15,285 | Pier 1 Imports, Inc. | 262,596 | |||||||||
8,752 | Ross Stores, Inc. | 539,036 | |||||||||
10,775 | Sally Beauty Holdings, Inc.(a) | 286,615 | |||||||||
12,844 | TJX Cos., Inc. (The) | 535,723 | |||||||||
2,980 | Tractor Supply Co. | 293,262 | |||||||||
7,037 | Yum! Brands, Inc. | 511,801 | |||||||||
10,169,885 | |||||||||||
Toys/Games/Hobbies—1.7% | |||||||||||
35,194 | LeapFrog Enterprises, Inc.(a) | 328,712 | |||||||||
Total Common Stocks and Other Equity Interests (Cost $16,557,376) | 19,431,565 |
See Notes to Financial Statements.
30
Schedule of Investments (Continued)
PowerShares Dynamic Consumer Discretionary Sector Portfolio (PEZ)
April 30, 2012
Number of Shares | Value | ||||||||||
Money Market Fund—0.5% | |||||||||||
94,881 | Goldman Sachs Financial Square Prime Obligations - Institutional Share Class (Cost $94,881) | $ | 94,881 | ||||||||
Total Investments (Cost $16,652,257)—100.5% | 19,526,446 | ||||||||||
Liabilities in excess of other assets—(0.5%) | (89,592 | ) | |||||||||
Net Assets—100.0% | $ | 19,436,854 |
Notes to Schedule of Investments:
(a) Non-income producing security.
See Notes to Financial Statements.
31
Schedule of Investments
PowerShares Dynamic Consumer Staples Sector Portfolio (PSL)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks—100.0% | |||||||||||
Agriculture—17.0% | |||||||||||
32,570 | Altria Group, Inc. | $ | 1,049,080 | ||||||||
11,744 | Andersons, Inc. (The) | 591,898 | |||||||||
30,550 | Archer-Daniels-Midland Co. | 941,856 | |||||||||
7,823 | Bunge Ltd. | 504,583 | |||||||||
4,101 | Lorillard, Inc. | 554,824 | |||||||||
11,760 | Philip Morris International, Inc. | 1,052,638 | |||||||||
23,650 | Reynolds American, Inc. | 965,629 | |||||||||
11,140 | Universal Corp. | 510,546 | |||||||||
28,656 | Vector Group Ltd. | 497,182 | |||||||||
6,668,236 | |||||||||||
Beverages—12.5% | |||||||||||
6,551 | Brown-Forman Corp., Class B | 565,679 | |||||||||
14,147 | Coca-Cola Co. (The) | 1,079,699 | |||||||||
24,631 | Constellation Brands, Inc., Class A(a) | 532,029 | |||||||||
13,767 | Dr Pepper Snapple Group, Inc. | 558,665 | |||||||||
12,096 | Molson Coors Brewing Co., Class B | 502,952 | |||||||||
9,460 | Monster Beverage Corp.(a) | 614,522 | |||||||||
15,429 | PepsiCo, Inc. | 1,018,314 | |||||||||
4,871,860 | |||||||||||
Cosmetics/Personal Care—7.9% | |||||||||||
14,100 | Elizabeth Arden, Inc.(a) | 549,618 | |||||||||
17,183 | Estee Lauder Cos., Inc. (The), Class A | 1,122,909 | |||||||||
30,799 | Inter Parfums, Inc. | 485,084 | |||||||||
14,636 | Procter & Gamble Co. (The) | 931,435 | |||||||||
3,089,046 | |||||||||||
Electrical Components & Equipment—1.3% | |||||||||||
6,870 | Energizer Holdings, Inc.(a) | 490,037 | |||||||||
Food—38.2% | |||||||||||
23,109 | B&G Foods, Inc. | 513,944 | |||||||||
19,097 | Calavo Growers, Inc. | 547,702 | |||||||||
13,584 | Cal-Maine Foods, Inc. | 489,432 | |||||||||
15,760 | Campbell Soup Co. | 533,161 | |||||||||
19,794 | ConAgra Foods, Inc. | 511,081 | |||||||||
9,342 | Corn Products International, Inc. | 533,055 | |||||||||
43,194 | Dean Foods Co.(a) | 530,422 | |||||||||
21,141 | Fresh Del Monte Produce, Inc. | 489,837 | |||||||||
25,590 | General Mills, Inc. | 995,195 | |||||||||
12,710 | Harris Teeter Supermarkets, Inc. | 482,599 | |||||||||
31,605 | Ingles Markets, Inc., Class A | 549,611 | |||||||||
18,507 | Kellogg Co. | 935,899 | |||||||||
25,774 | Kraft Foods, Inc., Class A | 1,027,609 | |||||||||
22,569 | Kroger Co. (The) | 525,181 | |||||||||
7,820 | Lancaster Colony Corp. | 509,942 | |||||||||
25,384 | Safeway, Inc. | 516,057 | |||||||||
26,210 | Sara Lee Corp. | 577,668 | |||||||||
22,569 | Smithfield Foods, Inc.(a) | 473,046 | |||||||||
23,842 | Snyders-Lance, Inc. | 617,031 | |||||||||
29,207 | Spartan Stores, Inc. | 532,444 | |||||||||
79,892 | SUPERVALU, Inc. | 474,558 |
Number of Shares | Value | ||||||||||
Common Stocks (Continued) | |||||||||||
33,376 | Sysco Corp. | $ | 964,566 | ||||||||
27,977 | Tyson Foods, Inc., Class A | 510,580 | |||||||||
12,401 | Weis Markets, Inc. | 553,085 | |||||||||
6,551 | Whole Foods Market, Inc. | 544,192 | |||||||||
14,937,897 | |||||||||||
Household Products/Wares—5.5% | |||||||||||
7,837 | Clorox Co. (The) | 549,374 | |||||||||
13,595 | Kimberly-Clark Corp. | 1,066,800 | |||||||||
12,205 | WD-40 Co. | 550,201 | |||||||||
2,166,375 | |||||||||||
Pharmaceuticals—2.9% | |||||||||||
7,995 | Herbalife Ltd. (Cayman Islands) | 562,208 | |||||||||
6,810 | Mead Johnson Nutrition Co. | 582,664 | |||||||||
1,144,872 | |||||||||||
Retail—14.7% | |||||||||||
10,223 | Casey's General Stores, Inc. | 576,066 | |||||||||
11,568 | Costco Wholesale Corp. | 1,019,950 | |||||||||
22,168 | CVS Caremark Corp. | 989,136 | |||||||||
9,864 | Nu Skin Enterprises, Inc., Class A | 525,751 | |||||||||
7,874 | PriceSmart, Inc. | 649,920 | |||||||||
344,988 | Rite Aid Corp.(a) | 500,233 | |||||||||
19,677 | Susser Holdings Corp.(a) | 525,179 | |||||||||
16,603 | Wal-Mart Stores, Inc. | 978,083 | |||||||||
5,764,318 | |||||||||||
Total Common Stocks (Cost $33,756,774) | 39,132,641 | ||||||||||
Money Market Fund—0.3% | |||||||||||
101,192 | Goldman Sachs Financial Square Prime Obligations - Institutional Share Class (Cost $101,192) | 101,192 | |||||||||
Total Investments (Cost $33,857,966)—100.3% | 39,233,833 | ||||||||||
Liabilities in excess of other assets—(0.3%) | (102,605 | ) | |||||||||
Net Assets—100.0% | $ | 39,131,228 |
Notes to Schedule of Investments:
(a) Non-income producing security.
See Notes to Financial Statements.
32
Schedule of Investments
PowerShares Dynamic Energy Sector Portfolio (PXI)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.0% | |||||||||||
Coal—3.9% | |||||||||||
42,383 | Alliance Holdings GP LP | $ | 1,896,639 | ||||||||
29,474 | Alliance Resource Partners LP | 1,903,431 | |||||||||
114,586 | Cloud Peak Energy, Inc.(a) | 1,763,479 | |||||||||
5,563,549 | |||||||||||
Energy - Alternate Sources—1.0% | |||||||||||
182,637 | Green Plains Renewable Energy, Inc.(a) | 1,459,270 | |||||||||
Oil & Gas Drilling—5.9% | |||||||||||
33,342 | Helmerich & Payne, Inc. | 1,713,445 | |||||||||
93,733 | Nabors Industries Ltd. (Bermuda)(a) | 1,560,655 | |||||||||
318,779 | Parker Drilling Co.(a) | 1,648,088 | |||||||||
103,014 | Patterson-UTI Energy, Inc. | 1,665,736 | |||||||||
41,360 | Unit Corp.(a) | 1,747,460 | |||||||||
8,335,384 | |||||||||||
Oil Companies - Exploration & Production—20.5% | |||||||||||
34,363 | Apache Corp. | 3,296,786 | |||||||||
24,201 | Cimarex Energy Co. | 1,672,531 | |||||||||
22,809 | Clayton Williams Energy, Inc.(a) | 1,677,374 | |||||||||
32,624 | Contango Oil & Gas Co.(a) | 1,770,178 | |||||||||
100,009 | Denbury Resources, Inc.(a) | 1,904,171 | |||||||||
118,615 | Energy Partners Ltd.(a) | 1,931,052 | |||||||||
38,697 | EQT Corp. | 1,927,885 | |||||||||
61,434 | GeoResources, Inc.(a) | 2,316,676 | |||||||||
36,914 | Occidental Petroleum Corp. | 3,367,295 | |||||||||
75,850 | Pioneer Southwest Energy Partners LP | 2,151,865 | |||||||||
92,983 | QR Energy LP | 1,743,431 | |||||||||
39,621 | Rosetta Resources, Inc.(a) | 1,991,748 | |||||||||
59,561 | Stone Energy Corp.(a) | 1,670,686 | |||||||||
77,942 | W&T Offshore, Inc. | 1,540,913 | |||||||||
28,962,591 | |||||||||||
Oil Companies - Integrated—15.1% | |||||||||||
35,147 | Chevron Corp. | 3,745,264 | |||||||||
66,208 | ConocoPhillips(a)(b) | 3,638,130 | |||||||||
43,896 | Exxon Mobil Corp. | 3,789,981 | |||||||||
109,507 | Marathon Oil Corp. | 3,212,935 | |||||||||
89,451 | Marathon Petroleum Corp. | 3,722,056 | |||||||||
59,201 | Murphy Oil Corp. | 3,254,279 | |||||||||
21,362,645 | |||||||||||
Oil Field Machinery & Equipment—2.4% | |||||||||||
44,559 | National Oilwell Varco, Inc. | 3,375,790 | |||||||||
Oil Refining & Marketing—10.2% | |||||||||||
70,268 | CVR Energy, Inc.(a) | 2,133,336 | |||||||||
157,585 | Delek US Holdings, Inc. | 2,568,636 | |||||||||
61,705 | HollyFrontier Corp. | 1,901,748 | |||||||||
75,494 | Tesoro Corp.(a) | 1,755,236 | |||||||||
157,190 | Valero Energy Corp. | 3,882,593 | |||||||||
114,024 | Western Refining, Inc. | 2,172,157 | |||||||||
14,413,706 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
Oil - Field Services—11.3% | |||||||||||
95,619 | C&J Energy Services, Inc.(a) | $ | 1,802,418 | ||||||||
16,368 | Core Laboratories NV (Netherlands) | 2,242,088 | |||||||||
48,633 | Hornbeck Offshore Services, Inc.(a) | 2,024,592 | |||||||||
37,356 | Oceaneering International, Inc. | 1,928,690 | |||||||||
24,410 | Oil States International, Inc.(a) | 1,942,548 | |||||||||
190,570 | RPC, Inc. | 1,970,494 | |||||||||
21,155 | SEACOR Holdings, Inc.(a) | 1,965,934 | |||||||||
45,510 | Targa Resources Corp. | 2,188,576 | |||||||||
16,065,340 | |||||||||||
Pipelines—26.7% | |||||||||||
146,442 | Crosstex Energy, Inc. | 2,181,986 | |||||||||
73,941 | Enterprise Products Partners LP | 3,810,919 | |||||||||
115,339 | Kinder Morgan, Inc. | 4,140,670 | |||||||||
34,853 | MarkWest Energy Partners LP | 2,096,408 | |||||||||
220,125 | Niska Gas Storage Partners LLC, Class U | 2,795,587 | |||||||||
57,545 | NuStar GP Holdings LLC | 1,930,635 | |||||||||
64,643 | Oiltanking Partners LP | 1,892,747 | |||||||||
62,829 | ONEOK Partners LP | 3,503,345 | |||||||||
46,618 | Plains All American Pipeline LP | 3,819,413 | |||||||||
120,827 | Spectra Energy Corp. | 3,714,222 | |||||||||
50,329 | Targa Resources Partners LP | 2,165,657 | |||||||||
46,564 | Western Gas Partners LP | 2,177,333 | |||||||||
62,410 | Williams Partners LP | 3,584,830 | |||||||||
37,813,752 | |||||||||||
Retail - Petroleum Products—1.5% | |||||||||||
47,777 | World Fuel Services Corp. | 2,105,055 | |||||||||
Transportation - Services—1.5% | |||||||||||
43,046 | Bristow Group, Inc. | 2,102,797 | |||||||||
Total Common Stocks and Other Equity Interests (Cost $141,499,315) | 141,559,879 | ||||||||||
Money Market Fund—0.1% | |||||||||||
105,115 | Goldman Sachs Financial Square Prime Obligations - Institutional Share Class (Cost $105,115) | 105,115 | |||||||||
Total Investments (Cost $141,604,430)—100.1% | 141,664,994 | ||||||||||
Liabilities in excess of other assets—(0.1%) | (103,127 | ) | |||||||||
Net Assets—100.0% | $ | 141,561,867 |
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) When-issued security.
See Notes to Financial Statements.
33
Schedule of Investments
PowerShares Dynamic Financial Sector Portfolio (PFI)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.0% | |||||||||||
Commercial Banks - Central U.S.—8.2% | |||||||||||
9,634 | 1st Source Corp. | $ | 218,595 | ||||||||
10,468 | Chemical Financial Corp. | 231,029 | |||||||||
4,315 | Cullen/Frost Bankers, Inc. | 254,412 | |||||||||
14,602 | First Financial Bancorp. | 245,460 | |||||||||
12,906 | International Bancshares Corp. | 254,635 | |||||||||
7,484 | Texas Capital Bancshares, Inc.(a) | 282,222 | |||||||||
1,486,353 | |||||||||||
Commercial Banks - Eastern U.S.—2.5% | |||||||||||
37,419 | CapitalSource, Inc. | 241,353 | |||||||||
11,354 | S&T Bancorp, Inc. | 212,547 | |||||||||
453,900 | |||||||||||
Commercial Banks - Southern U.S.—12.3% | |||||||||||
8,355 | Bank of the Ozarks, Inc. | 258,169 | |||||||||
15,265 | BB&T Corp. | 489,091 | |||||||||
7,062 | City Holding Co. | 235,518 | |||||||||
7,805 | Community Trust Bancorp, Inc. | 249,370 | |||||||||
9,741 | Home BancShares, Inc. | 283,853 | |||||||||
14,681 | Pinnacle Financial Partners, Inc.(a) | 268,662 | |||||||||
9,323 | Republic Bancorp, Inc., Class A | 219,370 | |||||||||
9,200 | Simmons First National Corp., Class A | 223,928 | |||||||||
2,227,961 | |||||||||||
Commercial Banks - Western U.S.—4.1% | |||||||||||
11,307 | Columbia Banking System, Inc. | 231,681 | |||||||||
7,676 | First Republic Bank(a) | 253,538 | |||||||||
12,919 | Zions Bancorp. | 263,418 | |||||||||
748,637 | |||||||||||
Commercial Services - Finance—2.6% | |||||||||||
11,575 | Moody's Corp. | 473,996 | |||||||||
Fiduciary Banks—1.4% | |||||||||||
26,141 | Boston Private Financial Holdings, Inc. | 243,634 | |||||||||
Finance - Auto Loans—1.3% | |||||||||||
2,487 | Credit Acceptance Corp.(a) | 233,853 | |||||||||
Finance - Consumer Loans—5.0% | |||||||||||
15,847 | Ocwen Financial Corp.(a) | 236,279 | |||||||||
27,796 | SLM Corp. | 412,215 | |||||||||
3,799 | World Acceptance Corp.(a) | 252,671 | |||||||||
901,165 | |||||||||||
Finance - Credit Card—5.6% | |||||||||||
8,438 | American Express Co. | 508,052 | |||||||||
14,906 | Discover Financial Services | 505,313 | |||||||||
1,013,365 | |||||||||||
Finance - Other Services—2.4% | |||||||||||
3,220 | IntercontinentalExchange, Inc.(a) | 428,389 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
Insurance Brokers—1.5% | |||||||||||
7,113 | Arthur J. Gallagher & Co. | $ | 267,164 | ||||||||
Investment Management/Advisor Services—9.2% | |||||||||||
9,733 | Epoch Holding Corp. | 262,791 | |||||||||
18,088 | Invesco Ltd.(b) | 449,306 | |||||||||
15,526 | National Financial Partners Corp.(a) | 229,008 | |||||||||
7,374 | T. Rowe Price Group, Inc. | 465,410 | |||||||||
3,107 | Virtus Investment Partners, Inc.(a) | 262,231 | |||||||||
1,668,746 | |||||||||||
Life/Health Insurance—14.2% | |||||||||||
9,595 | Aflac, Inc. | 432,159 | |||||||||
20,137 | American Equity Investment Life Holding Co. | 246,880 | |||||||||
5,510 | Delphi Financial Group, Inc., Class A | 250,264 | |||||||||
9,787 | Lincoln National Corp. | 242,424 | |||||||||
16,159 | Principal Financial Group, Inc. | 447,120 | |||||||||
8,708 | Protective Life Corp. | 254,796 | |||||||||
7,367 | Prudential Financial, Inc. | 445,998 | |||||||||
5,030 | Torchmark Corp. | 245,011 | |||||||||
2,564,652 | |||||||||||
Multi-line Insurance—11.6% | |||||||||||
6,154 | ACE Ltd. | 467,519 | |||||||||
3,339 | American National Insurance Co. | 234,398 | |||||||||
5,715 | Assurant, Inc. | 230,543 | |||||||||
15,735 | CNA Financial Corp. | 481,806 | |||||||||
14,213 | Horace Mann Educators Corp. | 249,438 | |||||||||
11,918 | MetLife, Inc. | 429,406 | |||||||||
2,093,110 | |||||||||||
Property/Casualty Insurance—11.2% | |||||||||||
10,490 | AMERISAFE, Inc.(a) | 280,293 | |||||||||
8,897 | AmTrust Financial Services, Inc. | 242,354 | |||||||||
13,947 | Fidelity National Financial, Inc., Class A | 268,759 | |||||||||
16,044 | First American Financial Corp. | 268,737 | |||||||||
16,138 | OneBeacon Insurance Group Ltd., Class A | 229,644 | |||||||||
2,752 | ProAssurance Corp. | 242,423 | |||||||||
3,432 | RLI Corp. | 236,396 | |||||||||
6,771 | W.R. Berkley Corp. | 254,996 | |||||||||
2,023,602 | |||||||||||
REITs - Diversified—2.5% | |||||||||||
7,014 | American Tower Corp. REIT | 459,978 | |||||||||
Savings & Loans/Thrifts - Eastern U.S.—1.6% | |||||||||||
18,999 | Oritani Financial Corp. | 281,565 | |||||||||
Super - Regional Banks - U.S.—2.8% | |||||||||||
15,664 | U.S. Bancorp | 503,911 | |||||||||
Total Investments (Cost $16,493,988)—100.0% | 18,073,981 | ||||||||||
Liabilities in excess of other assets—(0.0%) | (2,877 | ) | |||||||||
Net Assets—100.0% | $ | 18,071,104 |
See Notes to Financial Statements.
34
Schedule of Investments (Continued)
PowerShares Dynamic Financial Sector Portfolio (PFI)
April 30, 2012
Investment Abbreviations:
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) 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.
35
Schedule of Investments
PowerShares Dynamic Healthcare Sector Portfolio (PTH)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks—100.0% | |||||||||||
Biotechnology—14.7% | |||||||||||
10,839 | Alexion Pharmaceuticals, Inc.(a) | $ | 978,978 | ||||||||
12,249 | Celgene Corp.(a) | 893,197 | |||||||||
13,803 | Charles River Laboratories International, Inc.(a) | 490,421 | |||||||||
20,267 | Gilead Sciences, Inc.(a) | 1,054,087 | |||||||||
22,702 | Medicines Co. (The)(a) | 501,487 | |||||||||
31,849 | Momenta Pharmaceuticals, Inc.(a) | 505,762 | |||||||||
20,961 | Myriad Genetics, Inc.(a) | 545,196 | |||||||||
77,574 | PDL BioPharma, Inc. | 487,940 | |||||||||
5,457,068 | |||||||||||
Commercial Services—2.7% | |||||||||||
8,018 | Chemed Corp. | 483,806 | |||||||||
19,645 | PAREXEL International Corp.(a) | 529,236 | |||||||||
1,013,042 | |||||||||||
Distribution/Wholesale—1.4% | |||||||||||
5,647 | MWI Veterinary Supply, Inc.(a) | 533,077 | |||||||||
Electronics—2.7% | |||||||||||
2,765 | Mettler-Toledo International, Inc.(a) | 495,820 | |||||||||
18,368 | PerkinElmer, Inc. | 506,957 | |||||||||
1,002,777 | |||||||||||
Healthcare - Products—24.3% | |||||||||||
2,377 | Atrion Corp. | 548,231 | |||||||||
35,867 | Conceptus, Inc.(a) | 673,224 | |||||||||
16,695 | CONMED Corp. | 477,310 | |||||||||
6,313 | Cooper Cos., Inc. (The) | 556,617 | |||||||||
13,523 | Cyberonics, Inc.(a) | 517,931 | |||||||||
6,695 | Henry Schein, Inc.(a) | 513,775 | |||||||||
10,941 | ICU Medical, Inc.(a) | 574,293 | |||||||||
5,686 | IDEXX Laboratories, Inc.(a) | 499,970 | |||||||||
1,789 | Intuitive Surgical, Inc.(a) | 1,034,400 | |||||||||
15,568 | Patterson Cos., Inc. | 530,713 | |||||||||
17,007 | ResMed, Inc.(a) | 578,408 | |||||||||
48,064 | Staar Surgical Co.(a) | 527,262 | |||||||||
14,283 | Thoratec Corp.(a) | 497,191 | |||||||||
29,624 | Wright Medical Group, Inc.(a) | 551,895 | |||||||||
14,745 | Zimmer Holdings, Inc. | 927,903 | |||||||||
9,009,123 | |||||||||||
Healthcare - Services—23.4% | |||||||||||
19,563 | Aetna, Inc. | 861,554 | |||||||||
18,895 | AmSurg Corp.(a) | 543,420 | |||||||||
10,232 | Centene Corp.(a) | 405,085 | |||||||||
19,926 | Community Health Systems, Inc.(a) | 484,999 | |||||||||
5,764 | DaVita, Inc.(a) | 510,575 | |||||||||
34,305 | HCA Holdings, Inc. | 923,491 | |||||||||
10,307 | Humana, Inc. | 831,569 | |||||||||
18,531 | Lincare Holdings, Inc. | 452,156 | |||||||||
10,253 | Magellan Health Services, Inc.(a) | 454,003 | |||||||||
10,682 | National Healthcare Corp. | 487,099 |
Number of Shares | Value | ||||||||||
Common Stocks (Continued) | |||||||||||
20,676 | Triple-S Management Corp., Class B(a) | $ | 435,437 | ||||||||
16,483 | UnitedHealth Group, Inc. | 925,520 | |||||||||
7,037 | WellCare Health Plans, Inc.(a) | 430,524 | |||||||||
13,876 | WellPoint, Inc. | 941,070 | |||||||||
8,686,502 | |||||||||||
Internet—1.4% | |||||||||||
22,630 | HealthStream, Inc.(a) | 518,680 | |||||||||
Pharmaceuticals—25.9% | |||||||||||
10,493 | Allergan, Inc. | 1,007,328 | |||||||||
24,332 | AmerisourceBergen Corp. | 905,394 | |||||||||
28,138 | Bristol-Myers Squibb Co. | 938,965 | |||||||||
28,408 | Forest Laboratories, Inc.(a) | 989,451 | |||||||||
12,693 | Hi-Tech Pharmacal Co., Inc.(a) | 413,665 | |||||||||
11,187 | McKesson Corp. | 1,022,604 | |||||||||
14,799 | Medicis Pharmaceutical Corp., Class A | 569,317 | |||||||||
14,399 | Omnicare, Inc. | 501,661 | |||||||||
20,298 | Pharmacyclics, Inc.(a) | 559,413 | |||||||||
40,514 | PharMerica Corp.(a) | 480,901 | |||||||||
12,862 | Questcor Pharmaceuticals, Inc.(a) | 577,504 | |||||||||
15,764 | ViroPharma, Inc.(a) | 342,867 | |||||||||
30,640 | Warner Chilcott PLC, Class A (Ireland)(a) | 666,420 | |||||||||
8,601 | Watson Pharmaceuticals, Inc.(a) | 648,171 | |||||||||
9,623,661 | |||||||||||
Software—3.5% | |||||||||||
25,633 | Allscripts Healthcare Solutions, Inc.(a) | 284,014 | |||||||||
12,436 | Cerner Corp.(a) | 1,008,435 | |||||||||
1,292,449 | |||||||||||
Total Common Stocks (Cost $33,521,934) | 37,136,379 | ||||||||||
Money Market Fund—0.4% | |||||||||||
128,698 | Goldman Sachs Financial Square Prime Obligations - Institutional Share Class (Cost $128,698) | 128,698 | |||||||||
Total Investments (Cost $33,650,632)—100.4% | 37,265,077 | ||||||||||
Liabilities in excess of other assets—(0.4%) | (131,240 | ) | |||||||||
Net Assets—100.0% | $ | 37,133,837 |
Notes to Schedule of Investments:
(a) Non-income producing security.
See Notes to Financial Statements.
36
Schedule of Investments
PowerShares Dynamic Industrials Sector Portfolio (PRN)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks—100.0% | |||||||||||
Aerospace/Defense—18.1% | |||||||||||
8,874 | BE Aerospace, Inc.(a) | $ | 417,344 | ||||||||
10,896 | Curtiss-Wright Corp. | 384,520 | |||||||||
5,991 | Goodrich Corp. | 751,631 | |||||||||
10,729 | L-3 Communications Holdings, Inc. | 789,011 | |||||||||
8,422 | Lockheed Martin Corp. | 762,528 | |||||||||
4,180 | National Presto Industries, Inc. | 308,150 | |||||||||
12,584 | Northrop Grumman Corp. | 796,315 | |||||||||
6,441 | TransDigm Group, Inc.(a) | 812,339 | |||||||||
6,311 | Triumph Group, Inc. | 396,457 | |||||||||
5,418,295 | |||||||||||
Airlines—15.8% | |||||||||||
12,122 | Alaska Air Group, Inc.(a) | 409,723 | |||||||||
8,497 | Allegiant Travel Co.(a) | 499,284 | |||||||||
79,124 | Delta Air Lines, Inc.(a) | 867,199 | |||||||||
35,123 | SkyWest, Inc. | 315,756 | |||||||||
86,872 | Southwest Airlines Co. | 719,300 | |||||||||
22,053 | Spirit Airlines, Inc.(a) | 529,713 | |||||||||
36,945 | United Continental Holdings, Inc.(a) | 809,834 | |||||||||
58,841 | US Airways Group, Inc.(a) | 603,709 | |||||||||
4,754,518 | |||||||||||
Commercial Services—15.9% | |||||||||||
5,223 | Advisory Board Co. (The)(a) | 476,129 | |||||||||
30,972 | Avis Budget Group, Inc.(a) | 407,591 | |||||||||
16,224 | Deluxe Corp. | 386,293 | |||||||||
5,395 | Dollar Thrifty Automotive Group, Inc.(a) | 436,240 | |||||||||
9,947 | FTI Consulting, Inc.(a) | 361,474 | |||||||||
10,600 | Huron Consulting Group, Inc.(a) | 373,544 | |||||||||
14,989 | ICF International, Inc.(a) | 373,826 | |||||||||
29,590 | Navigant Consulting, Inc.(a) | 411,893 | |||||||||
29,171 | R.R. Donnelley & Sons Co. | 364,929 | |||||||||
22,825 | RPX Corp.(a) | 394,416 | |||||||||
6,417 | Towers Watson & Co., Class A | 419,672 | |||||||||
20,513 | Viad Corp. | 370,875 | |||||||||
4,776,882 | |||||||||||
Computers—1.3% | |||||||||||
24,052 | Sykes Enterprises, Inc.(a) | 381,224 | |||||||||
Distribution/Wholesale—2.5% | |||||||||||
3,637 | W.W. Grainger, Inc. | 755,841 | |||||||||
Electrical Components & Equipment—2.6% | |||||||||||
12,200 | EnerSys(a) | 426,390 | |||||||||
15,244 | Generac Holdings, Inc.(a) | 367,075 | |||||||||
793,465 | |||||||||||
Electronics—2.8% | |||||||||||
14,743 | Tyco International Ltd. (Switzerland) | 827,525 |
Number of Shares | Value | ||||||||||
Common Stocks (Continued) | |||||||||||
Engineering & Construction—2.6% | |||||||||||
8,758 | Exponent, Inc.(a) | $ | 418,632 | ||||||||
8,822 | URS Corp. | 364,437 | |||||||||
783,069 | |||||||||||
Hand/Machine Tools—1.3% | |||||||||||
8,990 | Kennametal, Inc. | 379,648 | |||||||||
Holding Companies - Diversified—1.2% | |||||||||||
24,851 | Primoris Services Corp. | 358,351 | |||||||||
Machinery - Diversified—8.7% | |||||||||||
14,317 | AGCO Corp.(a) | 666,743 | |||||||||
7,177 | Cascade Corp. | 337,821 | |||||||||
6,193 | Cummins, Inc. | 717,335 | |||||||||
3,969 | NACCO Industries, Inc., Class A | 450,363 | |||||||||
5,576 | Wabtec Corp. | 433,701 | |||||||||
2,605,963 | |||||||||||
Metal Fabricate/Hardware—1.3% | |||||||||||
8,791 | Mueller Industries, Inc. | 401,837 | |||||||||
Miscellaneous Manufacturing—6.1% | |||||||||||
14,864 | Barnes Group, Inc. | 392,410 | |||||||||
12,959 | Ceradyne, Inc. | 328,122 | |||||||||
17,600 | ITT Corp. | 395,296 | |||||||||
27,272 | Textron, Inc. | 726,526 | |||||||||
1,842,354 | |||||||||||
Textiles—1.6% | |||||||||||
14,520 | G&K Services, Inc., Class A | 477,127 | |||||||||
Transportation—16.9% | |||||||||||
74,242 | Air Transport Services Group, Inc.(a) | 393,482 | |||||||||
22,256 | Arkansas Best Corp. | 341,407 | |||||||||
14,271 | Con-way, Inc. | 463,807 | |||||||||
8,357 | FedEx Corp. | 737,422 | |||||||||
12,714 | Forward Air Corp. | 429,479 | |||||||||
6,027 | Kirby Corp.(a) | 400,012 | |||||||||
19,112 | Marten Transport Ltd. | 402,690 | |||||||||
6,697 | Union Pacific Corp. | 753,011 | |||||||||
9,858 | United Parcel Service, Inc., Class B | 770,304 | |||||||||
16,571 | Werner Enterprises, Inc. | 391,407 | |||||||||
5,083,021 | |||||||||||
Trucking & Leasing—1.3% | |||||||||||
3,863 | AMERCO | 388,000 | |||||||||
Total Common Stocks (Cost $28,719,953) | 30,027,120 |
See Notes to Financial Statements.
37
Schedule of Investments (Continued)
PowerShares Dynamic Industrials Sector Portfolio (PRN)
April 30, 2012
Number of Shares | Value | ||||||||||
Money Market Fund—0.3% | |||||||||||
79,253 | Goldman Sachs Financial Square Prime Obligations - Institutional Share Class (Cost $79,253) | $ | 79,253 | ||||||||
Total Investments (Cost $28,799,206)—100.3% | 30,106,373 | ||||||||||
Liabilities in excess of other assets—(0.3%) | (89,058 | ) | |||||||||
Net Assets—100.0% | $ | 30,017,315 |
Notes to Schedule of Investments:
(a) Non-income producing security.
See Notes to Financial Statements.
38
Schedule of Investments
PowerShares Dynamic Technology Sector Portfolio (PTF)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks—100.0% | |||||||||||
Banks—1.4% | |||||||||||
10,827 | Cass Information Systems, Inc. | $ | 443,366 | ||||||||
Commercial Services—13.4% | |||||||||||
6,322 | Alliance Data Systems Corp.(a) | 812,314 | |||||||||
15,043 | Cardtronics, Inc.(a) | 396,533 | |||||||||
14,568 | Heartland Payment Systems, Inc. | 443,887 | |||||||||
1,854 | MasterCard, Inc., Class A | 838,509 | |||||||||
22,830 | TNS, Inc.(a) | 465,732 | |||||||||
19,139 | Total System Services, Inc. | 450,149 | |||||||||
6,556 | Visa, Inc., Class A | 806,257 | |||||||||
4,213,381 | |||||||||||
Computers—22.7% | |||||||||||
1,475 | Apple, Inc.(a) | 861,754 | |||||||||
71,846 | Brocade Communications Systems, Inc.(a) | 398,027 | |||||||||
35,589 | Cadence Design Systems, Inc.(a) | 415,323 | |||||||||
13,098 | Computer Sciences Corp. | 367,530 | |||||||||
44,208 | Dell, Inc.(a) | 723,685 | |||||||||
19,200 | Insight Enterprises, Inc.(a) | 389,952 | |||||||||
3,896 | International Business Machines Corp. | 806,783 | |||||||||
11,283 | Lexmark International, Inc., Class A | 339,618 | |||||||||
9,025 | Manhattan Associates, Inc.(a) | 452,604 | |||||||||
28,030 | Seagate Technology PLC (Ireland) | 862,203 | |||||||||
10,886 | Synaptics, Inc.(a) | 334,309 | |||||||||
22,156 | Unisys Corp.(a) | 413,431 | |||||||||
19,370 | Western Digital Corp.(a) | 751,750 | |||||||||
7,116,969 | |||||||||||
Distribution/Wholesale—1.4% | |||||||||||
21,565 | Ingram Micro, Inc., Class A(a) | 419,655 | |||||||||
Electronics—11.7% | |||||||||||
11,588 | Avnet, Inc.(a) | 418,095 | |||||||||
9,466 | FEI Co.(a) | 474,909 | |||||||||
58,619 | Flextronics International Ltd. (Singapore)(a) | 390,402 | |||||||||
16,159 | Jabil Circuit, Inc. | 378,929 | |||||||||
15,914 | Multi-Fineline Electronix, Inc.(a) | 421,562 | |||||||||
7,844 | OSI Systems, Inc.(a) | 524,450 | |||||||||
11,455 | Plexus Corp.(a) | 370,798 | |||||||||
34,593 | Sanmina-SCI Corp.(a) | 307,878 | |||||||||
7,340 | Tech Data Corp.(a) | 394,819 | |||||||||
3,681,842 | |||||||||||
Home Furnishings—1.3% | |||||||||||
36,201 | TiVo, Inc.(a) | 390,609 | |||||||||
Internet—11.4% | |||||||||||
23,055 | AOL, Inc.(a) | 577,297 | |||||||||
6,045 | F5 Networks, Inc.(a) | 809,607 | |||||||||
9,301 | IAC/InterActiveCorp. | 447,843 | |||||||||
35,054 | InfoSpace, Inc.(a) | 390,151 | |||||||||
9,528 | Liquidity Services, Inc.(a) | 508,128 |
Number of Shares | Value | ||||||||||
Common Stocks (Continued) | |||||||||||
16,085 | Stamps.com, Inc.(a) | $ | 466,948 | ||||||||
79,302 | United Online, Inc. | 375,891 | |||||||||
3,575,865 | |||||||||||
Machinery - Diversified—1.2% | |||||||||||
37,729 | Hollysys Automation Technologies Ltd. (British Virgin Islands)(a) | 374,649 | |||||||||
Semiconductors—9.5% | |||||||||||
28,860 | Intel Corp. | 819,624 | |||||||||
16,137 | KLA-Tencor Corp. | 841,545 | |||||||||
37,393 | Kulicke & Soffa Industries, Inc.(a) | 489,848 | |||||||||
49,447 | LSI Corp.(a) | 397,554 | |||||||||
9,290 | Novellus Systems, Inc.(a) | 434,307 | |||||||||
2,982,878 | |||||||||||
Software—17.1% | |||||||||||
63,603 | Activision Blizzard, Inc. | 818,571 | |||||||||
19,854 | Aspen Technology, Inc.(a) | 392,712 | |||||||||
8,044 | CommVault Systems, Inc.(a) | 418,851 | |||||||||
40,143 | Deltek, Inc.(a) | 419,093 | |||||||||
10,370 | Fair Isaac Corp. | 444,873 | |||||||||
13,272 | Intuit, Inc. | 769,378 | |||||||||
24,478 | Microsoft Corp. | 783,785 | |||||||||
10,813 | SolarWinds, Inc.(a) | 507,238 | |||||||||
10,234 | SYNNEX Corp.(a) | 389,813 | |||||||||
10,863 | Tyler Technologies, Inc.(a) | 433,977 | |||||||||
5,378,291 | |||||||||||
Telecommunications—8.9% | |||||||||||
6,044 | Anixter International, Inc.(a) | 414,498 | |||||||||
38,260 | Cisco Systems, Inc. | 770,939 | |||||||||
12,806 | Comtech Telecommunications Corp. | 395,961 | |||||||||
15,589 | Motorola Solutions, Inc. | 795,507 | |||||||||
11,107 | Plantronics, Inc. | 425,620 | |||||||||
2,802,525 | |||||||||||
Total Common Stocks (Cost $27,069,729) | 31,380,030 | ||||||||||
Money Market Fund—0.3% | |||||||||||
93,144 | Goldman Sachs Financial Square Prime Obligations - Institutional Share Class (Cost $93,144) | 93,144 | |||||||||
Total Investments (Cost $27,162,873)—100.3% | 31,473,174 | ||||||||||
Liabilities in excess of other assets—(0.3%) | (86,373 | ) | |||||||||
Net Assets—100.0% | $ | 31,386,801 |
Notes to Schedule of Investments:
(a) Non-income producing security.
See Notes to Financial Statements.
39
Schedule of Investments
PowerShares Dynamic Utilities Portfolio (PUI)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks—100.0% | |||||||||||
Cable/Satellite TV—3.2% | |||||||||||
20,611 | DISH Network Corp., Class A | $ | 658,934 | ||||||||
37,617 | Knology, Inc.(a) | 731,650 | |||||||||
1,390,584 | |||||||||||
Cellular Telecommunications—5.0% | |||||||||||
55,631 | Leap Wireless International, Inc.(a) | 312,090 | |||||||||
49,424 | MetroPCS Communications, Inc.(a) | 360,795 | |||||||||
29,313 | NII Holdings, Inc.(a) | 410,235 | |||||||||
240,320 | Sprint Nextel Corp.(a) | 595,994 | |||||||||
13,104 | United States Cellular Corp.(a) | 513,939 | |||||||||
2,193,053 | |||||||||||
Electric - Integrated—49.4% | |||||||||||
13,712 | Alliant Energy Corp. | 620,331 | |||||||||
18,412 | Ameren Corp. | 603,729 | |||||||||
28,843 | American Electric Power Co., Inc. | 1,120,262 | |||||||||
23,601 | Avista Corp. | 624,010 | |||||||||
8,929 | CH Energy Group, Inc. | 585,921 | |||||||||
14,971 | Cleco Corp. | 610,817 | |||||||||
27,380 | CMS Energy Corp. | 629,466 | |||||||||
18,495 | Consolidated Edison, Inc. | 1,099,528 | |||||||||
21,205 | Dominion Resources, Inc. | 1,106,689 | |||||||||
10,823 | DTE Energy Co. | 610,201 | |||||||||
51,576 | Duke Energy Corp. | 1,105,274 | |||||||||
17,976 | El Paso Electric Co. | 550,785 | |||||||||
8,840 | Entergy Corp. | 579,550 | |||||||||
24,694 | FirstEnergy Corp. | 1,156,173 | |||||||||
14,460 | IDACORP, Inc. | 589,100 | |||||||||
17,908 | NextEra Energy, Inc. | 1,152,380 | |||||||||
16,830 | NorthWestern Corp. | 597,801 | |||||||||
37,146 | NV Energy, Inc. | 618,481 | |||||||||
12,494 | Pinnacle West Capital Corp. | 604,085 | |||||||||
23,983 | Portland General Electric Co. | 619,481 | |||||||||
20,269 | Progress Energy, Inc. | 1,078,716 | |||||||||
35,762 | Public Service Enterprise Group, Inc. | 1,113,986 | |||||||||
13,089 | SCANA Corp. | 603,665 | |||||||||
24,434 | Southern Co. (The) | 1,122,498 | |||||||||
16,544 | UIL Holdings Corp. | 568,617 | |||||||||
17,271 | Wisconsin Energy Corp. | 636,264 | |||||||||
41,097 | Xcel Energy, Inc. | 1,112,085 | |||||||||
21,419,895 | |||||||||||
Electronic Components - Miscellaneous—1.3% | |||||||||||
12,354 | Garmin Ltd. (Switzerland) | 582,244 | |||||||||
Gas - Distribution—5.4% | |||||||||||
14,704 | AGL Resources, Inc. | 579,779 | |||||||||
14,180 | Laclede Group, Inc. (The) | 558,408 | |||||||||
25,067 | NiSource, Inc. | 617,902 | |||||||||
29,904 | Questar Corp. | 590,604 | |||||||||
2,346,693 |
Number of Shares | Value | ||||||||||
Common Stocks (Continued) | |||||||||||
Internet Connectivity Services—3.1% | |||||||||||
8,363 | AboveNet, Inc.(a) | $ | 695,551 | ||||||||
34,017 | Cogent Communications Group, Inc.(a) | 637,138 | |||||||||
1,332,689 | |||||||||||
Networking Products—2.5% | |||||||||||
54,034 | Cisco Systems, Inc. | 1,088,785 | |||||||||
Satellite Telecommunications—1.5% | |||||||||||
75,521 | Iridium Communications, Inc.(a) | 663,830 | |||||||||
Telecommunication Equipment—1.3% | |||||||||||
18,086 | Comtech Telecommunications Corp. | 559,219 | |||||||||
Telecommunication Services—6.4% | |||||||||||
31,160 | Consolidated Communications Holdings, Inc. | 602,946 | |||||||||
50,691 | Neutral Tandem, Inc.(a) | 589,030 | |||||||||
24,337 | NTELOS Holdings Corp. | 492,094 | |||||||||
27,405 | tw telecom, inc.(a) | 596,881 | |||||||||
239,351 | Vonage Holdings Corp.(a) | 488,276 | |||||||||
2,769,227 | |||||||||||
Telephone - Integrated—12.6% | |||||||||||
35,868 | AT&T, Inc. | 1,180,416 | |||||||||
14,781 | Atlantic Tele-Network, Inc. | 503,441 | |||||||||
27,261 | CenturyLink, Inc. | 1,051,184 | |||||||||
157,035 | Cincinnati Bell, Inc.(a) | 596,733 | |||||||||
54,860 | General Communication, Inc., Class A(a) | 416,936 | |||||||||
28,533 | Verizon Communications, Inc. | 1,152,162 | |||||||||
48,815 | Windstream Corp. | 548,681 | |||||||||
5,449,553 | |||||||||||
Water—1.4% | |||||||||||
17,499 | American Water Works Co., Inc. | 599,166 | |||||||||
Wireless Equipment—6.9% | |||||||||||
20,709 | Crown Castle International Corp.(a) | 1,172,337 | |||||||||
22,016 | Motorola Solutions, Inc. | 1,123,476 | |||||||||
12,673 | SBA Communications Corp., Class A(a) | 681,047 | |||||||||
2,976,860 | |||||||||||
Total Common Stocks (Cost $42,710,952) | 43,371,798 | ||||||||||
Money Market Fund—0.1% | |||||||||||
61,596 | Goldman Sachs Financial Square Prime Obligations - Institutional Share Class (Cost $61,596) | 61,596 | |||||||||
Total Investments (Cost $42,772,548)—100.1% | 43,433,394 | ||||||||||
Liabilities in excess of other assets—(0.1%) | (39,916 | ) | |||||||||
Net Assets—100.0% | $ | 43,393,478 |
Notes to Schedule of Investments:
(a) Non-income producing security.
See Notes to Financial Statements.
40
Schedule of Investments
PowerShares NASDAQ Internet Portfolio (PNQI)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.0% | |||||||||||
Communications Software—0.4% | |||||||||||
20,077 | Velti PLC (Jersey Islands)(a) | $ | 239,920 | ||||||||
Computer Services—1.2% | |||||||||||
8,181 | Carbonite, Inc.(a)(b) | 65,366 | |||||||||
15,631 | j2 Global, Inc. | 403,749 | |||||||||
17,338 | LivePerson, Inc.(a) | 275,327 | |||||||||
744,442 | |||||||||||
Computer Software—3.5% | |||||||||||
57,767 | Akamai Technologies, Inc.(a) | 1,883,204 | |||||||||
15,779 | Cornerstone OnDemand, Inc.(a) | 327,888 | |||||||||
2,211,092 | |||||||||||
Consulting Services—0.4% | |||||||||||
6,532 | Zillow, Inc.(a)(b) | 227,771 | |||||||||
E-Commerce/Products—24.3% | |||||||||||
27,134 | Amazon.com, Inc.(a) | 6,292,375 | |||||||||
4,522 | Blue Nile, Inc.(a)(b) | 136,926 | |||||||||
136,406 | eBay, Inc.(a) | 5,599,466 | |||||||||
14,323 | MercadoLibre, Inc. (Argentina) | 1,385,607 | |||||||||
17,987 | Netflix, Inc.(a) | 1,441,478 | |||||||||
9,146 | Nutrisystem, Inc.(b) | 105,911 | |||||||||
11,350 | Shutterfly, Inc.(a) | 353,212 | |||||||||
4,886 | Stamps.com, Inc.(a) | 141,841 | |||||||||
15,456,816 | |||||||||||
E-Commerce/Services—17.5% | |||||||||||
13,954 | Ancestry.com, Inc.(a)(b) | 372,572 | |||||||||
39,206 | Expedia, Inc.(b) | 1,671,352 | |||||||||
123,535 | Groupon, Inc.(a)(b) | 1,323,060 | |||||||||
24,490 | IAC/InterActiveCorp. | 1,179,194 | |||||||||
12,839 | Move, Inc.(a) | 111,699 | |||||||||
7,342 | OpenTable, Inc.(a)(b) | 328,408 | |||||||||
33,788 | Orbitz Worldwide, Inc.(a) | 123,326 | |||||||||
7,776 | Priceline.com, Inc.(a) | 5,916,136 | |||||||||
29,350 | United Online, Inc. | 139,119 | |||||||||
11,164,866 | |||||||||||
E-Marketing/Information—3.0% | |||||||||||
11,041 | comScore, Inc.(a) | 219,937 | |||||||||
9,839 | Constant Contact, Inc.(a) | 237,809 | |||||||||
11,582 | Digital River, Inc.(a) | 217,857 | |||||||||
9,931 | Liquidity Services, Inc.(a) | 529,620 | |||||||||
14,699 | QuinStreet, Inc.(a) | 154,486 | |||||||||
26,053 | ValueClick, Inc.(a) | 551,803 | |||||||||
1,911,512 | |||||||||||
Enterprise Software/Services—1.7% | |||||||||||
18,787 | Open Text Corp. (Canada)(a) | 1,051,884 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
E-Services/Consulting—0.5% | |||||||||||
5,656 | Keynote Systems, Inc. | $ | 104,070 | ||||||||
9,962 | Perficient, Inc.(a) | 119,644 | |||||||||
9,697 | Saba Software, Inc.(a) | 94,255 | |||||||||
317,969 | |||||||||||
Human Resources—0.5% | |||||||||||
39,914 | Monster Worldwide, Inc.(a) | 344,458 | |||||||||
Internet Application Software—1.1% | |||||||||||
13,588 | DealerTrack Holdings, Inc.(a) | 405,330 | |||||||||
15,026 | KIT Digital, Inc.(a)(b) | 101,876 | |||||||||
11,177 | RealNetworks, Inc. | 106,964 | |||||||||
6,514 | Vocus, Inc.(a) | 84,226 | |||||||||
698,396 | |||||||||||
Internet Connectivity Services—1.0% | |||||||||||
9,866 | 21Vianet Group, Inc. ADR (Cayman Islands)(a) | 129,540 | |||||||||
10,806 | Boingo Wireless, Inc.(a) | 113,787 | |||||||||
14,949 | Cogent Communications Group, Inc.(a) | 279,995 | |||||||||
17,167 | Internap Network Services Corp.(a) | 120,856 | |||||||||
644,178 | |||||||||||
Internet Content - Entertainment—2.4% | |||||||||||
33,971 | Limelight Networks, Inc.(a) | 93,081 | |||||||||
24,339 | NetEase, Inc. ADR (China)(a) | 1,468,128 | |||||||||
1,561,209 | |||||||||||
Internet Content - Information/Network—0.6% | |||||||||||
16,617 | WebMD Health Corp.(a) | 378,037 | |||||||||
Internet Content - Information/News—1.1% | |||||||||||
18,534 | Angie's List, Inc.(a)(b) | 258,549 | |||||||||
21,235 | Dice Holdings, Inc.(a) | 228,913 | |||||||||
5,197 | Travelzoo, Inc.(a)(b) | 134,914 | |||||||||
9,328 | XO Group, Inc.(a) | 86,471 | |||||||||
708,847 | |||||||||||
Internet Incubators—1.1% | |||||||||||
26,134 | HomeAway, Inc.(a) | 680,791 | |||||||||
Internet Security—4.2% | |||||||||||
23,209 | Qihoo 360 Technology Co. Ltd. ADR (Cayman Islands)(a)(b) | 570,245 | |||||||||
51,833 | VeriSign, Inc. | 2,130,855 | |||||||||
2,701,100 | |||||||||||
Networking Products—0.5% | |||||||||||
7,998 | LogMeIn, Inc.(a) | 288,008 | |||||||||
Printing - Commercial—0.7% | |||||||||||
11,963 | VistaPrint NV (Netherlands)(a)(b) | 446,100 |
See Notes to Financial Statements.
41
Schedule of Investments (Continued)
PowerShares NASDAQ Internet Portfolio (PNQI)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
Retail - Pet Food & Supplies—0.1% | |||||||||||
6,621 | PetMed Express, Inc. | $ | 89,185 | ||||||||
Web Hosting/Design—8.5% | |||||||||||
15,161 | Equinix, Inc.(a) | 2,489,436 | |||||||||
20,950 | NIC, Inc. | 234,431 | |||||||||
42,881 | Rackspace Hosting, Inc.(a) | 2,490,957 | |||||||||
15,434 | Web.com Group, Inc.(a) | 199,870 | |||||||||
5,414,694 | |||||||||||
Web Portals/ISP—25.7% | |||||||||||
30,743 | AOL, Inc.(a) | 769,805 | |||||||||
35,666 | Baidu, Inc. ADR (China)(a) | 4,732,878 | |||||||||
34,580 | EarthLink, Inc. | 280,790 | |||||||||
7,886 | Google, Inc., Class A(a) | 4,772,844 | |||||||||
12,836 | InfoSpace, Inc.(a) | 142,865 | |||||||||
21,388 | SINA Corp. (China)(a)(b) | 1,251,412 | |||||||||
12,352 | Sohu.com, Inc.(a)(b) | 636,993 | |||||||||
164,410 | Yahoo!, Inc.(a) | 2,554,931 | |||||||||
52,698 | Yandex NV, Class A (Netherlands)(a) | 1,249,996 | |||||||||
16,392,514 | |||||||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan)—100.0% (Cost $55,691,360) | 63,673,789 | ||||||||||
Investments Purchased with Cash Collateral from Securities on Loan Money Market Fund—9.2% | |||||||||||
5,852,125 | Invesco Liquid Assets Portfolio - Institutional Class (Cost $5,852,125)(c)(d) | 5,852,125 | |||||||||
Total Investments (Cost $61,543,485)—109.2% | 69,525,914 | ||||||||||
Liabilities in excess of other assets—(9.2%) | (5,847,743 | ) | |||||||||
Net Assets—100.0% | $ | 63,678,171 |
Investment Abbreviations:
ADR—American Depositary Receipt
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) All or a portion of this security was out on loan at April 30, 2012.
(c) The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower's return of the securities loaned. See Note 2H.
(d) The security and the Fund are advised by wholly owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.
This Fund has holdings greater than 10% of net assets in the following countries:
China | 11.7 | % |
See Notes to Financial Statements.
42
This page intentionally left blank
Statements of Assets and Liabilities
April 30, 2012
PowerShares Dynamic Basic Materials Sector Portfolio (PYZ) | PowerShares Dynamic Consumer Discretionary Sector Portfolio (PEZ) | PowerShares Dynamic Consumer Staples Sector Portfolio (PSL) | PowerShares Dynamic Energy Sector Portfolio (PXI) | PowerShares Dynamic Financial Sector Portfolio (PFI) | |||||||||||||||||||
ASSETS: | |||||||||||||||||||||||
Unaffiliated investments, at value (a) | $ | 67,032,938 | $ | 19,526,446 | $ | 39,233,833 | $ | 141,664,994 | $ | 17,624,675 | |||||||||||||
Affiliated investments, at value (Note 4) | — | — | — | — | 449,306 | ||||||||||||||||||
Investment of securities lending collateral in affiliated money market fund, at value (Note 2H) | — | — | — | — | — | ||||||||||||||||||
Total investments, at value | 67,032,938 | 19,526,446 | 39,233,833 | 141,664,994 | 18,073,981 | ||||||||||||||||||
Receivables: | |||||||||||||||||||||||
Dividends | 59,775 | 5,558 | 41,002 | 86,403 | 7,324 | ||||||||||||||||||
Expense waivers | 6,470 | 8,065 | 4,926 | 6,210 | 6,641 | ||||||||||||||||||
Investments sold | — | — | — | 1,043,417 | 242,356 | ||||||||||||||||||
Affiliated securities lending dividends | — | — | — | — | — | ||||||||||||||||||
Total Assets | 67,099,183 | 19,540,069 | 39,279,761 | 142,801,024 | 18,330,302 | ||||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||
Due to custodian | 1,254 | 1,027 | 1,120 | 1,686 | 155,170 | ||||||||||||||||||
Payables: | |||||||||||||||||||||||
Investments purchased | 34,481 | — | 22,864 | 1,056,782 | — | ||||||||||||||||||
Collateral upon return of securities loaned | — | — | — | — | — | ||||||||||||||||||
Accrued advisory fees | 27,127 | 8,177 | 15,960 | 59,303 | 7,667 | ||||||||||||||||||
Accrued expenses | 112,790 | 94,011 | 108,589 | 121,386 | 96,361 | ||||||||||||||||||
Total Liabilities | 175,652 | 103,215 | 148,533 | 1,239,157 | 259,198 | ||||||||||||||||||
NET ASSETS | $ | 66,923,531 | $ | 19,436,854 | $ | 39,131,228 | $ | 141,561,867 | $ | 18,071,104 | |||||||||||||
NET ASSETS CONSIST OF: | |||||||||||||||||||||||
Shares of beneficial interest | $ | 80,023,431 | $ | 25,035,039 | $ | 44,171,635 | $ | 161,395,968 | $ | 27,728,870 | |||||||||||||
Undistributed net investment income (loss) | 129,415 | 15,924 | 130,519 | 114,065 | 33,073 | ||||||||||||||||||
Undistributed net realized gain (loss) | (18,204,911 | ) | (8,488,298 | ) | (10,546,793 | ) | (20,008,730 | ) | (11,270,832 | ) | |||||||||||||
Net unrealized appreciation | 4,975,596 | 2,874,189 | 5,375,867 | 60,564 | 1,579,993 | ||||||||||||||||||
Net Assets | $ | 66,923,531 | $ | 19,436,854 | $ | 39,131,228 | $ | 141,561,867 | $ | 18,071,104 | |||||||||||||
Shares outstanding (unlimited amount authorized, $0.01 par value) | 1,750,000 | 650,000 | 1,200,000 | 3,500,000 | 900,000 | ||||||||||||||||||
Net asset value | $ | 38.24 | $ | 29.90 | $ | 32.61 | $ | 40.45 | $ | 20.08 | |||||||||||||
Share price | $ | 38.20 | $ | 29.89 | $ | 32.60 | $ | 40.47 | $ | 20.07 | |||||||||||||
Unaffiliated investments, at cost | $ | 62,057,342 | $ | 16,652,257 | $ | 33,857,966 | $ | 141,604,430 | $ | 16,042,697 | |||||||||||||
Affiliated investments, at cost | $ | — | $ | — | $ | — | $ | — | $ | 451,291 | |||||||||||||
Investments of securities lending collateral in affiliated money market fund, at cost | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Total investments, at cost | $ | 62,057,342 | $ | 16,652,257 | $ | 33,857,966 | $ | 141,604,430 | $ | 16,493,988 | |||||||||||||
(a)Includes securities on loan with an aggregate value of | $ | — | $ | — | $ | — | $ | — | $ | — |
See Notes to Financial Statements.
44
PowerShares Dynamic Healthcare Sector Portfolio (PTH) | PowerShares Dynamic Industrials Sector Portfolio (PRN) | PowerShares Dynamic Technology Sector Portfolio (PTF) | PowerShares Dynamic Utilities Portfolio (PUI) | PowerShares NASDAQ Internet Portfolio (PNQI) | |||||||||||||||||||
ASSETS: | |||||||||||||||||||||||
Unaffiliated investments, at value (a) | $ | 37,265,077 | $ | 30,106,373 | $ | 31,473,174 | $ | 43,433,394 | $ | 63,673,789 | |||||||||||||
Affiliated investments, at value (Note 4) | — | — | — | — | — | ||||||||||||||||||
Investment of securities lending collateral in affiliated money market fund, at value (Note 2H) | — | — | — | — | 5,852,125 | ||||||||||||||||||
Total investments, at value | 37,265,077 | 30,106,373 | 31,473,174 | 43,433,394 | 69,525,914 | ||||||||||||||||||
Receivables: | |||||||||||||||||||||||
Dividends | 13,972 | 14,618 | 22,543 | 75,496 | 2 | ||||||||||||||||||
Expense waivers | 8,430 | 7,848 | 5,056 | 5,385 | — | ||||||||||||||||||
Investments sold | 611,767 | — | — | — | — | ||||||||||||||||||
Affiliated securities lending dividends | — | — | — | — | 45,019 | ||||||||||||||||||
Total Assets | 37,899,246 | 30,128,839 | 31,500,773 | 43,514,275 | 69,570,935 | ||||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||
Due to custodian | 1,118 | 1,090 | 1,081 | 1,146 | 9,825 | ||||||||||||||||||
Payables: | |||||||||||||||||||||||
Investments purchased | 623,323 | — | — | — | — | ||||||||||||||||||
Collateral upon return of securities loaned | — | — | — | — | 5,852,125 | ||||||||||||||||||
Accrued advisory fees | 15,144 | 12,481 | 12,771 | 17,787 | 30,814 | ||||||||||||||||||
Accrued expenses | 125,824 | 97,953 | 100,120 | 101,864 | — | ||||||||||||||||||
Total Liabilities | 765,409 | 111,524 | 113,972 | 120,797 | 5,892,764 | ||||||||||||||||||
NET ASSETS | $ | 37,133,837 | $ | 30,017,315 | $ | 31,386,801 | $ | 43,393,478 | $ | 63,678,171 | |||||||||||||
NET ASSETS CONSIST OF: | |||||||||||||||||||||||
Shares of beneficial interest | $ | 84,433,801 | $ | 70,340,123 | $ | 55,316,277 | $ | 59,257,666 | $ | 58,481,792 | |||||||||||||
Undistributed net investment income (loss) | 21,470 | 104,690 | 5,350 | 135,685 | (9,714 | ) | |||||||||||||||||
Undistributed net realized gain (loss) | (50,935,879 | ) | (41,734,665 | ) | (28,245,127 | ) | (16,660,719 | ) | (2,776,336 | ) | |||||||||||||
Net unrealized appreciation | 3,614,445 | 1,307,167 | 4,310,301 | 660,846 | 7,982,429 | ||||||||||||||||||
Net Assets | $ | 37,133,837 | $ | 30,017,315 | $ | 31,386,801 | $ | 43,393,478 | $ | 63,678,171 | |||||||||||||
Shares outstanding (unlimited amount authorized, $0.01 par value) | 1,150,000 | 1,000,000 | 1,150,000 | 2,600,000 | 1,550,000 | ||||||||||||||||||
Net asset value | $ | 32.29 | $ | 30.02 | $ | 27.29 | $ | 16.69 | $ | 41.08 | |||||||||||||
Share price | $ | 32.30 | $ | 30.00 | $ | 27.28 | $ | 16.66 | $ | 41.08 | |||||||||||||
Unaffiliated investments, at cost | $ | 33,650,632 | $ | 28,799,206 | $ | 27,162,873 | $ | 42,772,548 | $ | 55,691,360 | |||||||||||||
Affiliated investments, at cost | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||
Investments of securities lending collateral in affiliated money market fund, at cost | $ | — | $ | — | $ | — | $ | — | $ | 5,852,125 | |||||||||||||
Total investments, at cost | $ | 33,650,632 | $ | 28,799,206 | $ | 27,162,873 | $ | 42,772,548 | $ | 61,543,485 | |||||||||||||
(a)Includes securities on loan with an aggregate value of | $ | — | $ | — | $ | — | $ | — | $ | 5,610,962 |
45
Statements of Operations
Year Ended April 30, 2012
PowerShares Dynamic Basic Materials Sector Portfolio (PYZ) | PowerShares Dynamic Consumer Discretionary Sector Portfolio (PEZ) | PowerShares Dynamic Consumer Staples Sector Portfolio (PSL) | PowerShares Dynamic Energy Sector Portfolio (PXI) | PowerShares Dynamic Financial Sector Portfolio (PFI) | |||||||||||||||||||
INVESTMENT INCOME: | |||||||||||||||||||||||
Unaffiliated dividend income | $ | 1,371,447 | $ | 263,674 | $ | 850,113 | $ | 1,783,679 | $ | 370,665 | |||||||||||||
Affiliated securities lending income (Note 4) | — | — | — | — | — | ||||||||||||||||||
Total Income | 1,371,447 | 263,674 | 850,113 | 1,783,679 | 370,665 | ||||||||||||||||||
EXPENSES: | |||||||||||||||||||||||
Advisory fees | 346,542 | 98,062 | 194,264 | 748,400 | 93,584 | ||||||||||||||||||
Accounting & administration fees | 67,460 | 67,460 | 67,460 | 67,460 | 67,460 | ||||||||||||||||||
Sub-licensing | 34,654 | 9,806 | 19,426 | 74,840 | 9,358 | ||||||||||||||||||
Professional fees | 31,532 | 29,820 | 30,838 | 32,292 | 29,622 | ||||||||||||||||||
Custodian & transfer agent fees | 13,808 | 9,117 | 11,488 | 17,105 | 9,273 | ||||||||||||||||||
Trustees fees | 7,231 | 5,569 | 6,181 | 9,793 | 5,664 | ||||||||||||||||||
Recapture (Note 3) | — | — | — | 6,749 | — | ||||||||||||||||||
Other expenses | 23,183 | 14,212 | 14,591 | 31,728 | 11,285 | ||||||||||||||||||
Total Expenses | 524,410 | 234,046 | 344,248 | 988,367 | 226,246 | ||||||||||||||||||
Less: Waivers | (73,906 | ) | (106,566 | ) | (91,705 | ) | (13,542 | ) | (104,587 | ) | |||||||||||||
Net Expenses | 450,504 | 127,480 | 252,543 | 974,825 | 121,659 | ||||||||||||||||||
Net Investment Income (Loss) | 920,943 | 136,194 | 597,570 | 808,854 | 249,006 | ||||||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS): | |||||||||||||||||||||||
Net realized gain (loss) from: | |||||||||||||||||||||||
Investment securities | (7,233,706 | ) | (2,648,482 | ) | (1,851,328 | ) | (11,522,320 | ) | (2,307,831 | ) | |||||||||||||
In-kind redemptions | 10,873,839 | 4,138,715 | 5,858,182 | 19,744,173 | 3,049,002 | ||||||||||||||||||
Net realized gain (loss) | 3,640,133 | 1,490,233 | 4,006,854 | 8,221,853 | 741,171 | ||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investment securities | (15,660,916 | ) | 165,387 | (2,648,395 | ) | (31,262,881 | ) | (1,452,237 | ) | ||||||||||||||
Net realized and unrealized gain (loss) | (12,020,783 | ) | 1,655,620 | 1,358,459 | (23,041,028 | ) | (711,066 | ) | |||||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | (11,099,840 | ) | $ | 1,791,814 | $ | 1,956,029 | $ | (22,232,174 | ) | $ | (462,060 | ) |
See Notes to Financial Statements.
46
PowerShares Dynamic Healthcare Sector Portfolio (PTH) | PowerShares Dynamic Industrials Sector Portfolio (PRN) | PowerShares Dynamic Technology Sector Portfolio (PTF) | PowerShares Dynamic Utilities Portfolio (PUI) | PowerShares NASDAQ Internet Portfolio (PNQI) | |||||||||||||||||||
INVESTMENT INCOME: | |||||||||||||||||||||||
Unaffiliated dividend income | $ | 388,202 | $ | 791,224 | $ | 222,495 | $ | 1,686,993 | $ | 118,296 | |||||||||||||
Affiliated securities lending income (Note 4) | — | — | — | — | 84,773 | ||||||||||||||||||
Total Income | 388,202 | 791,224 | 222,495 | 1,686,993 | 203,069 | ||||||||||||||||||
EXPENSES: | |||||||||||||||||||||||
Advisory fees | 277,234 | 278,592 | 163,362 | 273,723 | 316,588 | ||||||||||||||||||
Accounting & administration fees | 67,460 | 67,460 | 67,460 | 67,460 | — | ||||||||||||||||||
Sub-licensing | 27,723 | 27,859 | 16,336 | 16,423 | — | ||||||||||||||||||
Professional fees | 35,065 | 30,497 | 30,768 | 32,324 | — | ||||||||||||||||||
Custodian & transfer agent fees | 9,810 | 10,411 | 8,464 | 11,425 | — | ||||||||||||||||||
Trustees fees | 6,217 | 6,950 | 6,143 | 6,437 | — | ||||||||||||||||||
Recapture (Note 3) | 17,718 | 17,915 | 71 | 68 | — | ||||||||||||||||||
Other expenses | 15,104 | 4,203 | 13,256 | 14,573 | — | ||||||||||||||||||
Total Expenses | 456,331 | 443,887 | 305,860 | 422,433 | 316,588 | ||||||||||||||||||
Less: Waivers | (95,928 | ) | (81,718 | ) | (93,489 | ) | (77,540 | ) | — | ||||||||||||||
Net Expenses | 360,403 | 362,169 | 212,371 | 344,893 | 316,588 | ||||||||||||||||||
Net Investment Income (Loss) | 27,799 | 429,055 | 10,124 | 1,342,100 | (113,519 | ) | |||||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS): | |||||||||||||||||||||||
Net realized gain (loss) from: | |||||||||||||||||||||||
Investment securities | (8,968,107 | ) | (9,758,492 | ) | (6,430,443 | ) | (4,975,686 | ) | (2,307,891 | ) | |||||||||||||
In-kind redemptions | 11,690,592 | 4,908,294 | 4,591,035 | (640,426 | ) | 5,435,535 | |||||||||||||||||
Net realized gain (loss) | 2,722,485 | (4,850,198 | ) | (1,839,408 | ) | (5,616,112 | ) | 3,127,644 | |||||||||||||||
Change in net unrealized appreciation (depreciation) on investment securities | (8,466,595 | ) | (8,925,666 | ) | (604,634 | ) | (4,451,910 | ) | (2,982,302 | ) | |||||||||||||
Net realized and unrealized gain (loss) | (5,744,110 | ) | (13,775,864 | ) | (2,444,042 | ) | (10,068,022 | ) | 145,342 | ||||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | (5,716,311 | ) | $ | (13,346,809 | ) | $ | (2,433,918 | ) | $ | (8,725,922 | ) | $ | 31,823 |
47
Statements of Changes in Net Assets
PowerShares Dynamic Basic Materials Sector Portfolio (PYZ) | PowerShares Dynamic Consumer Discretionary Sector Portfolio (PEZ) | PowerShares Dynamic Consumer Staples Sector Portfolio (PSL) | |||||||||||||||||||||||||
Year Ended April 30, 2012 | Year Ended April 30, 2011 | Year Ended April 30, 2012 | Year Ended April 30, 2011 | Year Ended April 30, 2012 | Year Ended April 30, 2011 | ||||||||||||||||||||||
OPERATIONS: | |||||||||||||||||||||||||||
Net investment income (loss) | $ | 920,943 | $ | 1,621,379 | $ | 136,194 | $ | 169,107 | $ | 597,570 | $ | 729,525 | |||||||||||||||
Net realized gain (loss) | 3,640,133 | 7,366,242 | 1,490,233 | 2,812,801 | 4,006,854 | 2,169,551 | |||||||||||||||||||||
Net change in unrealized appreciation (depreciation) | (15,660,916 | ) | 12,431,129 | 165,387 | (540,674 | ) | (2,648,395 | ) | 3,967,366 | ||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | (11,099,840 | ) | 21,418,750 | 1,791,814 | 2,441,234 | 1,956,029 | 6,866,442 | ||||||||||||||||||||
Undistributed net investment income (loss) included in the price of units issued and redeemed | (169,953 | ) | 469,589 | 11,525 | 14,507 | (24,783 | ) | (46,060 | ) | ||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||||||||||||
Net investment income | (838,951 | ) | (1,632,096 | ) | (149,036 | ) | (142,120 | ) | (566,981 | ) | (712,831 | ) | |||||||||||||||
Return of capital | — | — | — | — | — | — | |||||||||||||||||||||
Total distributions to shareholders | (838,951 | ) | (1,632,096 | ) | (149,036 | ) | (142,120 | ) | (566,981 | ) | (712,831 | ) | |||||||||||||||
SHAREHOLDER TRANSACTIONS: | |||||||||||||||||||||||||||
Proceeds from shares sold | 59,009,722 | 67,091,633 | 21,226,795 | 30,811,179 | 26,308,085 | 16,225,994 | |||||||||||||||||||||
Value of shares repurchased | (77,738,600 | ) | (37,804,118 | ) | (24,089,490 | ) | (33,798,514 | ) | (29,337,675 | ) | (20,379,736 | ) | |||||||||||||||
Net income (loss) equalization | 169,953 | (469,589 | ) | (11,525 | ) | (14,507 | ) | 24,783 | 46,060 | ||||||||||||||||||
Net increase (decrease) in net assets resulting from shares transactions | (18,558,925 | ) | 28,817,926 | (2,874,220 | ) | (3,001,842 | ) | (3,004,807 | ) | (4,107,682 | ) | ||||||||||||||||
Increase (Decrease) in Net Assets | (30,667,669 | ) | 49,074,169 | (1,219,917 | ) | (688,221 | ) | (1,640,542 | ) | 1,999,869 | |||||||||||||||||
NET ASSETS: | |||||||||||||||||||||||||||
Beginning of year | 97,591,200 | 48,517,031 | 20,656,771 | 21,344,992 | 40,771,770 | 38,771,901 | |||||||||||||||||||||
End of year | $ | 66,923,531 | $ | 97,591,200 | $ | 19,436,854 | $ | 20,656,771 | $ | 39,131,228 | $ | 40,771,770 | |||||||||||||||
Undistributed net investment income (loss) at end of year | $ | 129,415 | $ | 47,423 | $ | 15,924 | $ | 28,766 | $ | 130,519 | $ | 99,930 | |||||||||||||||
CHANGES IN SHARES OUTSTANDING: | |||||||||||||||||||||||||||
Shares sold | 1,550,000 | 1,950,000 | 800,000 | 1,300,000 | 850,000 | 600,000 | |||||||||||||||||||||
Shares repurchased | (2,200,000 | ) | (1,100,000 | ) | (900,000 | ) | (1,450,000 | ) | (950,000 | ) | (750,000 | ) | |||||||||||||||
Shares outstanding, beginning of year | 2,400,000 | 1,550,000 | 750,000 | 900,000 | 1,300,000 | 1,450,000 | |||||||||||||||||||||
Shares outstanding, end of year | 1,750,000 | 2,400,000 | 650,000 | 750,000 | 1,200,000 | 1,300,000 |
See Notes to Financial Statements.
48
PowerShares Dynamic Energy Sector Portfolio (PXI) | PowerShares Dynamic Financial Sector Portfolio (PFI) | PowerShares Dynamic Healthcare Sector Portfolio (PTH) | |||||||||||||||||||||||||
Year Ended April 30, 2012 | Year Ended April 30, 2011 | Year Ended April 30, 2012 | Year Ended April 30, 2011 | Year Ended April 30, 2012 | Year Ended April 30, 2011 | ||||||||||||||||||||||
OPERATIONS: | |||||||||||||||||||||||||||
Net investment income (loss) | $ | 808,854 | $ | 752,907 | $ | 249,006 | $ | 274,108 | $ | 27,799 | $ | (127,779 | ) | ||||||||||||||
Net realized gain (loss) | 8,221,853 | 14,509,820 | 741,171 | 1,654,781 | 2,722,485 | 12,288,493 | |||||||||||||||||||||
Net change in unrealized appreciation (depreciation) | (31,262,881 | ) | 25,446,375 | (1,452,237 | ) | 559,754 | (8,466,595 | ) | (5,044,165 | ) | |||||||||||||||||
Net increase (decrease) in net assets resulting from operations | (22,232,174 | ) | 40,709,102 | (462,060 | ) | 2,488,643 | (5,716,311 | ) | 7,116,549 | ||||||||||||||||||
Undistributed net investment income (loss) included in the price of units issued and redeemed | (89,274 | ) | 248,162 | (4,825 | ) | 304 | 5,884 | 132,547 | |||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||||||||||||
Net investment income | (960,095 | ) | (444,392 | ) | (214,150 | ) | (315,046 | ) | — | — | |||||||||||||||||
Return of capital | — | — | — | — | — | — | |||||||||||||||||||||
Total distributions to shareholders | (960,095 | ) | (444,392 | ) | (214,150 | ) | (315,046 | ) | — | — | |||||||||||||||||
SHAREHOLDER TRANSACTIONS: | |||||||||||||||||||||||||||
Proceeds from shares sold | 143,577,871 | 183,166,148 | 19,751,147 | 21,741,962 | 80,866,281 | 62,165,104 | |||||||||||||||||||||
Value of shares repurchased | (170,726,580 | ) | (70,198,961 | ) | (23,496,307 | ) | (18,962,403 | ) | (100,838,066 | ) | (104,057,484 | ) | |||||||||||||||
Net income (loss) equalization | 89,274 | (248,162 | ) | 4,825 | (304 | ) | (5,884 | ) | (132,547 | ) | |||||||||||||||||
Net increase (decrease) in net assets resulting from shares transactions | (27,059,435 | ) | 112,719,025 | (3,740,335 | ) | 2,779,255 | (19,977,669 | ) | (42,024,927 | ) | |||||||||||||||||
Increase (Decrease) in Net Assets | (50,340,978 | ) | 153,231,897 | (4,421,370 | ) | 4,953,156 | (25,688,096 | ) | (34,775,831 | ) | |||||||||||||||||
NET ASSETS: | |||||||||||||||||||||||||||
Beginning of year | 191,902,845 | 38,670,948 | 22,492,474 | 17,539,318 | 62,821,933 | 97,597,764 | |||||||||||||||||||||
End of year | $ | 141,561,867 | $ | 191,902,845 | $ | 18,071,104 | $ | 22,492,474 | $ | 37,133,837 | $ | 62,821,933 | |||||||||||||||
Undistributed net investment income (loss) at end of year | $ | 114,065 | $ | 331,180 | $ | 33,073 | $ | 1,914 | $ | 21,470 | $ | (6,329 | ) | ||||||||||||||
CHANGES IN SHARES OUTSTANDING: | |||||||||||||||||||||||||||
Shares sold | 3,550,000 | 5,000,000 | 1,050,000 | 1,200,000 | 2,600,000 | 2,400,000 | |||||||||||||||||||||
Shares repurchased | (4,350,000 | ) | (2,000,000 | ) | (1,250,000 | ) | (1,050,000 | ) | (3,450,000 | ) | (4,200,000 | ) | |||||||||||||||
Shares outstanding, beginning of year | 4,300,000 | 1,300,000 | 1,100,000 | 950,000 | 2,000,000 | 3,800,000 | |||||||||||||||||||||
Shares outstanding, end of year | 3,500,000 | 4,300,000 | 900,000 | 1,100,000 | 1,150,000 | 2,000,000 |
49
Statements of Changes in Net Assets (Continued)
PowerShares Dynamic Industrials Sector Portfolio (PRN) | PowerShares Dynamic Technology Sector Portfolio (PTF) | ||||||||||||||||||
Year Ended April 30, 2012 | Year Ended April 30, 2011 | Year Ended April 30, 2012 | Year Ended April 30, 2011 | ||||||||||||||||
OPERATIONS: | |||||||||||||||||||
Net investment income (loss) | $ | 429,055 | $ | 291,599 | $ | 10,124 | $ | (27,144 | ) | ||||||||||
Net realized gain (loss) | (4,850,198 | ) | 7,290,783 | (1,839,408 | ) | 6,173,670 | |||||||||||||
Net change in unrealized appreciation (depreciation) | (8,925,666 | ) | 5,470,306 | (604,634 | ) | 195,839 | |||||||||||||
Net increase (decrease) in net assets resulting from operations | (13,346,809 | ) | 13,052,688 | (2,433,918 | ) | 6,342,365 | |||||||||||||
Undistributed net investment income (loss) included in the price of units issued and redeemed | 23,686 | (15,439 | ) | 66,735 | (9,019 | ) | |||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||||
Net investment income | (355,923 | ) | (298,462 | ) | — | — | |||||||||||||
Return of capital | — | — | — | (20,352 | ) | ||||||||||||||
Total distributions to shareholders | (355,923 | ) | (298,462 | ) | — | (20,352 | ) | ||||||||||||
SHAREHOLDER TRANSACTIONS: | |||||||||||||||||||
Proceeds from shares sold | 68,247,178 | 126,307,101 | 34,288,268 | 55,920,728 | |||||||||||||||
Value of shares repurchased | (138,155,848 | ) | (58,211,661 | ) | (50,260,948 | ) | (51,391,309 | ) | |||||||||||
Net income (loss) equalization | (23,686 | ) | 15,439 | (66,735 | ) | 9,019 | |||||||||||||
Net increase (decrease) in net assets resulting from shares transactions | (69,932,356 | ) | 68,110,879 | (16,039,415 | ) | 4,538,438 | |||||||||||||
Increase (Decrease) in Net Assets | (83,611,402 | ) | 80,849,666 | (18,406,598 | ) | 10,851,432 | |||||||||||||
NET ASSETS: | |||||||||||||||||||
Beginning of year | 113,628,717 | 32,779,051 | 49,793,399 | 38,941,967 | |||||||||||||||
End of year | $ | 30,017,315 | $ | 113,628,717 | $ | 31,386,801 | $ | 49,793,399 | |||||||||||
Undistributed net investment income (loss) at end of year | $ | 104,690 | $ | 32,419 | $ | 5,350 | $ | (4,774 | ) | ||||||||||
CHANGES IN SHARES OUTSTANDING: | |||||||||||||||||||
Shares sold | 2,300,000 | 4,350,000 | 1,350,000 | 2,250,000 | |||||||||||||||
Shares repurchased | (4,800,000 | ) | (2,150,000 | ) | (2,000,000 | ) | (2,100,000 | ) | |||||||||||
Shares outstanding, beginning of year | 3,500,000 | 1,300,000 | 1,800,000 | 1,650,000 | |||||||||||||||
Shares outstanding, end of year | 1,000,000 | 3,500,000 | 1,150,000 | 1,800,000 |
See Notes to Financial Statements.
50
PowerShares Dynamic Utilities Portfolio (PUI) | PowerShares NASDAQ Internet Portfolio (PNQI) | ||||||||||||||||||
Year Ended April 30, 2012 | Year Ended April 30, 2011 | Year Ended April 30, 2012 | Year Ended April 30, 2011 | ||||||||||||||||
OPERATIONS: | |||||||||||||||||||
Net investment income (loss) | $ | 1,342,100 | $ | 1,273,901 | $ | (113,519 | ) | $ | (42,993 | ) | |||||||||
Net realized gain (loss) | (5,616,112 | ) | 2,463,145 | 3,127,644 | 2,480,188 | ||||||||||||||
Net change in unrealized appreciation (depreciation) | (4,451,910 | ) | 3,577,891 | (2,982,302 | ) | 8,511,422 | |||||||||||||
Net increase (decrease) in net assets resulting from operations | (8,725,922 | ) | 7,314,937 | 31,823 | 10,948,617 | ||||||||||||||
Undistributed net investment income (loss) included in the price of units issued and redeemed | (132,362 | ) | (14,215 | ) | (55,608 | ) | (78,012 | ) | |||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||||
Net investment income | (1,320,323 | ) | (1,369,784 | ) | — | — | |||||||||||||
Return of capital | — | — | — | — | |||||||||||||||
Total distributions to shareholders | (1,320,323 | ) | (1,369,784 | ) | — | — | |||||||||||||
SHAREHOLDER TRANSACTIONS: | |||||||||||||||||||
Proceeds from shares sold | 132,535,190 | 44,856,390 | 32,552,217 | 30,134,937 | |||||||||||||||
Value of shares repurchased | (126,184,308 | ) | (41,851,478 | ) | (14,413,130 | ) | (10,972,049 | ) | |||||||||||
Net income (loss) equalization | 132,362 | 14,215 | 55,608 | 78,012 | |||||||||||||||
Net increase (decrease) in net assets resulting from shares transactions | 6,483,244 | 3,019,127 | 18,194,695 | 19,240,900 | |||||||||||||||
Increase (Decrease) in Net Assets | (3,695,363 | ) | 8,950,065 | 18,170,910 | 30,111,505 | ||||||||||||||
NET ASSETS: | |||||||||||||||||||
Beginning of year | �� | 47,088,841 | 38,138,776 | 45,507,261 | 15,395,756 | ||||||||||||||
End of year | $ | 43,393,478 | $ | 47,088,841 | $ | 63,678,171 | $ | 45,507,261 | |||||||||||
Undistributed net investment income (loss) at end of year | $ | 135,685 | $ | 113,908 | $ | (9,714 | ) | $ | — | ||||||||||
CHANGES IN SHARES OUTSTANDING: | |||||||||||||||||||
Shares sold | 7,650,000 | 2,950,000 | 850,000 | 900,000 | |||||||||||||||
Shares repurchased | (7,800,000 | ) | (2,750,000 | ) | (400,000 | ) | (350,000 | ) | |||||||||||
Shares outstanding, beginning of year | 2,750,000 | 2,550,000 | 1,100,000 | 550,000 | |||||||||||||||
Shares outstanding, end of year | 2,600,000 | 2,750,000 | 1,550,000 | 1,100,000 |
51
Financial Highlights
PowerShares Dynamic Basic Materials Sector Portfolio (PYZ)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of year | $ | 40.66 | $ | 31.30 | $ | 20.14 | $ | 36.29 | $ | 31.65 | |||||||||||||
Net investment income(a) | 0.47 | 0.86 | (d) | 0.28 | 0.42 | 0.33 | |||||||||||||||||
Net realized and unrealized gain (loss) on investments | (2.46 | ) | 9.34 | 11.20 | (16.15 | ) | 4.55 | ||||||||||||||||
Total from investment operations | (1.99 | ) | 10.20 | 11.48 | (15.73 | ) | 4.88 | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.43 | ) | (0.84 | ) | (0.32 | ) | (0.42 | ) | (0.24 | ) | |||||||||||||
Net asset value at end of year | $ | 38.24 | $ | 40.66 | $ | 31.30 | $ | 20.14 | $ | 36.29 | |||||||||||||
Share price at end of year(b) | $ | 38.20 | $ | 40.67 | $ | 31.34 | $ | 20.15 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN(c) | (4.76 | )% | 33.12 | % | 57.46 | % | (43.63 | )% | 15.47 | % | |||||||||||||
SHARE PRICE TOTAL RETURN(c) | (4.88 | )% | 32.98 | % | 57.59 | % | (43.59 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 66,924 | $ | 97,591 | $ | 48,517 | $ | 18,129 | $ | 43,550 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.65 | % | 0.65 | % | 0.65 | % | 0.65 | % | 0.68 | % | |||||||||||||
Expenses, prior to Waivers | 0.76 | % | 0.79 | % | 0.91 | % | 0.97 | % | 0.96 | % | |||||||||||||
Net investment income, after Waivers | 1.33 | % | 2.56 | %(d) | 1.05 | % | 1.57 | % | 0.95 | % | |||||||||||||
Portfolio turnover rate(e) | 78 | % | 28 | % | 46 | % | 47 | % | 28 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(f) | $ | (0.09 | ) | $ | 0.25 | $ | 0.04 | $ | (0.01 | ) | $ | 0.03 |
PowerShares Dynamic Consumer Discretionary Sector Portfolio (PEZ)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of year | $ | 27.54 | $ | 23.72 | $ | 17.07 | $ | 22.45 | $ | 28.59 | |||||||||||||
Net investment income(a) | 0.18 | 0.20 | 0.06 | 0.13 | 0.10 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 2.37 | 3.79 | 6.65 | (5.35 | ) | (6.11 | ) | ||||||||||||||||
Total from investment operations | 2.55 | 3.99 | 6.71 | (5.22 | ) | (6.01 | ) | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.19 | ) | (0.17 | ) | (0.06 | ) | (0.15 | ) | (0.11 | ) | |||||||||||||
Return of capital | — | — | — | (0.01 | ) | (0.02 | ) | ||||||||||||||||
Total distributions | (0.19 | ) | (0.17 | ) | (0.06 | ) | (0.16 | ) | (0.13 | ) | |||||||||||||
Net asset value at end of year | $ | 29.90 | $ | 27.54 | $ | 23.72 | $ | 17.07 | $ | 22.45 | |||||||||||||
Share price at end of year(b) | $ | 29.89 | $ | 27.53 | $ | 23.74 | $ | 17.07 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN(c) | 9.41 | % | 16.91 | % | 39.37 | % | (23.19 | )% | (21.10 | )% | |||||||||||||
SHARE PRICE TOTAL RETURN(c) | 9.41 | % | 16.77 | % | 39.49 | % | (23.22 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 19,437 | $ | 20,657 | $ | 21,345 | $ | 13,658 | $ | 11,227 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.65 | % | 0.65 | % | 0.65 | % | 0.64 | % | 0.70 | % | |||||||||||||
Expenses, prior to Waivers | 1.19 | % | 1.24 | % | 1.32 | % | 1.68 | % | 1.31 | % | |||||||||||||
Net investment income, after Waivers | 0.69 | % | 0.86 | % | 0.31 | % | 0.81 | % | 0.36 | % | |||||||||||||
Portfolio turnover rate(e) | 88 | % | 68 | % | 86 | % | 157 | % | 95 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(f) | $ | 0.02 | $ | 0.02 | $ | (0.02 | ) | $ | (0.09 | ) | $ | 0.02 |
(a) Based on average shares outstanding.
(b) The mean between the last bid and ask prices.
(c) 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.
(d) Net investment income per share and the ratio of net investment income to average net assets include a special cash dividend received of $1.65 per share owned of Weyerhaeuser Co. on July 20, 2010. Net investment income per share and the ratio of net investment income to average net assets excluding the special dividend are $0.26 and 0.78%, respectively.
(e) Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
(f) The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
See Notes to Financial Statements.
52
Financial Highlights (Continued)
PowerShares Dynamic Consumer Staples Sector Portfolio (PSL)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of year | $ | 31.36 | $ | 26.74 | $ | 20.81 | $ | 26.75 | $ | 28.16 | |||||||||||||
Net investment income(a) | 0.48 | 0.52 | 0.36 | 0.45 | 0.34 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 1.22 | 4.61 | 5.99 | (6.04 | ) | (1.43 | ) | ||||||||||||||||
Total from investment operations | 1.70 | 5.13 | 6.35 | (5.59 | ) | (1.09 | ) | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.45 | ) | (0.51 | ) | (0.42 | ) | (0.35 | ) | (0.32 | ) | |||||||||||||
Net asset value at end of year | $ | 32.61 | $ | 31.36 | $ | 26.74 | $ | 20.81 | $ | 26.75 | |||||||||||||
Share price at end of year(b) | $ | 32.60 | $ | 31.37 | $ | 26.74 | $ | 20.79 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN(c) | 5.53 | % | 19.46 | % | 30.87 | % | (21.02 | )% | (3.94 | )% | |||||||||||||
SHARE PRICE TOTAL RETURN(c) | 5.47 | % | 19.50 | % | 30.99 | % | (21.09 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 39,131 | $ | 40,772 | $ | 38,772 | $ | 37,453 | $ | 24,072 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.65 | % | 0.65 | % | 0.65 | % | 0.65 | % | 0.69 | % | |||||||||||||
Expenses, prior to Waivers | 0.89 | % | 0.94 | % | 0.87 | % | 0.94 | % | 1.18 | % | |||||||||||||
Net investment income, after Waivers | 1.54 | % | 1.91 | % | 1.50 | % | 2.07 | % | 1.22 | % | |||||||||||||
Portfolio turnover rate(d) | 35 | % | 54 | % | 67 | % | 48 | % | 44 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(e) | $ | (0.02 | ) | $ | (0.03 | ) | $ | (0.06 | ) | $ | 0.15 | $ | 0.22 |
PowerShares Dynamic Energy Sector Portfolio (PXI)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of year | $ | 44.63 | $ | 29.75 | $ | 19.91 | $ | 38.80 | $ | 31.90 | |||||||||||||
Net investment income(a) | 0.21 | 0.32 | 0.20 | 0.18 | 0.14 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (4.15 | ) | 14.77 | 9.87 | (18.93 | ) | 6.84 | ||||||||||||||||
Total from investment operations | (3.94 | ) | 15.09 | 10.07 | (18.75 | ) | 6.98 | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.24 | ) | (0.21 | ) | (0.23 | ) | (0.14 | ) | (0.08 | ) | |||||||||||||
Net asset value at end of year | $ | 40.45 | $ | 44.63 | $ | 29.75 | $ | 19.91 | $ | 38.80 | |||||||||||||
Share price at end of year(b) | $ | 40.47 | $ | 44.65 | $ | 29.75 | $ | 19.92 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN(c) | (8.79 | )% | 51.01 | % | 50.81 | % | (48.52 | )% | 21.93 | % | |||||||||||||
SHARE PRICE TOTAL RETURN(c) | (8.78 | )% | 51.07 | % | 50.73 | % | (48.44 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 141,562 | $ | 191,903 | $ | 38,671 | $ | 25,878 | $ | 42,675 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.65 | % | 0.65 | % | 0.65 | % | 0.65 | % | 0.68 | % | |||||||||||||
Expenses, prior to Waivers | 0.66 | % | 0.74 | % | 0.93 | % | 0.98 | % | 0.96 | % | |||||||||||||
Net investment income, after Waivers | 0.54 | % | 0.90 | % | 0.79 | % | 0.65 | % | 0.41 | % | |||||||||||||
Portfolio turnover rate(d) | 107 | % | 35 | % | 63 | % | 67 | % | 50 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(e) | $ | (0.02 | ) | $ | 0.11 | $ | 0.00 | (f) | $ | 0.03 | $ | 0.02 |
(a) Based on average shares outstanding.
(b) The mean between the last bid and ask prices.
(c) 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.
(d) Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
(e) The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(f) Amount represents less than $0.005.
See Notes to Financial Statements.
53
Financial Highlights (Continued)
PowerShares Dynamic Financial Sector Portfolio (PFI)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of year | $ | 20.45 | $ | 18.46 | $ | 14.63 | $ | 22.94 | $ | 26.51 | |||||||||||||
Net investment income(a) | 0.25 | 0.27 | 0.21 | 0.24 | 0.25 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.42 | ) | 2.04 | 3.84 | (8.33 | ) | (3.59 | ) | |||||||||||||||
Total from investment operations | (0.17 | ) | 2.31 | 4.05 | (8.09 | ) | (3.34 | ) | |||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.20 | ) | (0.32 | ) | (0.22 | ) | (0.22 | ) | (0.23 | ) | |||||||||||||
Net asset value at end of year | $ | 20.08 | $ | 20.45 | $ | 18.46 | $ | 14.63 | $ | 22.94 | |||||||||||||
Share price at end of year(b) | $ | 20.07 | $ | 20.44 | $ | 18.45 | $ | 14.60 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN(c) | (0.66 | )% | 12.76 | % | 27.90 | % | (35.53 | )% | (12.69 | )% | |||||||||||||
SHARE PRICE TOTAL RETURN(c) | (0.66 | )% | 12.77 | % | 28.09 | % | (35.66 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 18,071 | $ | 22,492 | $ | 17,539 | $ | 14,630 | $ | 22,943 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers(d) | 0.65 | % | 0.65 | % | 0.65 | % | 0.65 | % | 0.72 | % | |||||||||||||
Expenses, prior to Waivers | 1.21 | % | 1.30 | % | 1.25 | % | 1.13 | % | 1.42 | % | |||||||||||||
Net investment income, after Waivers | 1.33 | % | 1.50 | % | 1.26 | % | 1.27 | % | 1.07 | % | |||||||||||||
Portfolio turnover rate(e) | 102 | % | 59 | % | 97 | % | 66 | % | 50 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(f) | $ | (0.01 | ) | $ | 0.00 | (g) | $ | 0.00 | (g) | $ | 0.00 | (g) | $ | 0.05 |
PowerShares Dynamic Healthcare Sector Portfolio (PTH)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of year | $ | 31.41 | $ | 25.68 | $ | 17.89 | $ | 25.87 | $ | 28.59 | |||||||||||||
Net investment income (loss)(a) | 0.02 | (0.05 | ) | 0.03 | 0.02 | (0.05 | ) | ||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.86 | 5.78 | 7.84 | (8.00 | ) | (2.67 | ) | ||||||||||||||||
Total from investment operations | 0.88 | 5.73 | 7.87 | (7.98 | ) | (2.72 | ) | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | — | — | (0.05 | ) | — | — | |||||||||||||||||
Return of capital | — | — | (0.03 | ) | — | — | |||||||||||||||||
Total distributions | — | — | (0.08 | ) | — | — | |||||||||||||||||
Net asset value at end of year | $ | 32.29 | $ | 31.41 | $ | 25.68 | $ | 17.89 | $ | 25.87 | |||||||||||||
Share price at end of year(b) | $ | 32.30 | $ | 31.44 | $ | 25.67 | $ | 17.86 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN(c) | 2.80 | % | 22.31 | % | 44.09 | % | (30.85 | )% | (9.51 | )% | |||||||||||||
SHARE PRICE TOTAL RETURN(c) | 2.74 | % | 22.48 | % | 44.28 | % | (30.94 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 37,134 | $ | 62,822 | $ | 97,598 | $ | 71,576 | $ | 119,019 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.65 | % | 0.65 | % | 0.65 | % | 0.65 | % | 0.66 | % | |||||||||||||
Expenses, prior to Waivers | 0.82 | % | 0.84 | % | 0.72 | % | 0.71 | % | 0.72 | % | |||||||||||||
Net investment income (loss), after Waivers | 0.05 | % | (0.21 | )% | 0.13 | % | 0.10 | % | (0.17 | )% | |||||||||||||
Portfolio turnover rate(e) | 99 | % | 63 | % | 79 | % | 96 | % | 75 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(f) | $ | 0.00 | (g) | $ | 0.06 | $ | 0.00 | (g) | $ | 0.01 | $ | (0.04 | ) |
(a) Based on average shares outstanding.
(b) The mean between the last bid and ask prices.
(c) 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.
(d) In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Fund invests. Estimated investment company expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the investment companies and are deducted from the value of the funds that the Fund invests in. The effect of the estimated investment company expenses that the Fund bears indirectly is included in the Fund's total return.
(e) Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
(f) The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(g) Amount represents less than $0.005.
See Notes to Financial Statements.
54
Financial Highlights (Continued)
PowerShares Dynamic Industrials Sector Portfolio (PRN)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of year | $ | 32.47 | $ | 25.21 | $ | 18.85 | $ | 30.33 | $ | 29.34 | |||||||||||||
Net investment income(a) | 0.22 | 0.17 | 0.20 | 0.22 | 0.14 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (2.48 | ) | 7.29 | 6.48 | (11.55 | ) | 1.00 | ||||||||||||||||
Total from investment operations | (2.26 | ) | 7.46 | 6.68 | (11.33 | ) | 1.14 | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.19 | ) | (0.20 | ) | (0.32 | ) | (0.15 | ) | (0.15 | ) | |||||||||||||
Net asset value at end of year | $ | 30.02 | $ | 32.47 | $ | 25.21 | $ | 18.85 | $ | 30.33 | |||||||||||||
Share price at end of year(b) | $ | 30.00 | $ | 32.48 | $ | 25.20 | $ | 18.82 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN(c) | (6.91 | )% | 29.83 | % | 35.73 | % | (37.41 | )% | 3.90 | % | |||||||||||||
SHARE PRICE TOTAL RETURN(c) | (7.00 | )% | 29.92 | % | 35.89 | % | (37.51 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 30,017 | $ | 113,629 | $ | 32,779 | $ | 60,324 | $ | 36,397 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.65 | % | 0.65 | % | 0.65 | % | 0.65 | % | 0.68 | % | |||||||||||||
Expenses, prior to Waivers | 0.80 | % | 0.88 | % | 0.82 | % | 0.81 | % | 0.90 | % | |||||||||||||
Net investment income, after Waivers | 0.77 | % | 0.62 | % | 0.93 | % | 1.05 | % | 0.45 | % | |||||||||||||
Portfolio turnover rate(d) | 129 | % | 48 | % | 121 | % | 81 | % | 84 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(e) | $ | 0.01 | $ | (0.01 | ) | $ | (0.06 | ) | $ | 0.03 | $ | 0.00 | (f) |
PowerShares Dynamic Technology Sector Portfolio (PTF)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of year | $ | 27.66 | $ | 23.60 | $ | 17.29 | $ | 24.83 | $ | 27.76 | |||||||||||||
Net investment income (loss)(a) | 0.01 | (0.02 | ) | (0.05 | ) | (0.01 | ) | (0.09 | ) | ||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.38 | ) | 4.09 | 6.36 | (7.53 | ) | (2.84 | ) | |||||||||||||||
Total from investment operations | (0.37 | ) | 4.07 | 6.31 | (7.54 | ) | (2.93 | ) | |||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Return of capital | — | (0.01 | ) | — | — | — | |||||||||||||||||
Net asset value at end of year | $ | 27.29 | $ | 27.66 | $ | 23.60 | $ | 17.29 | $ | 24.83 | |||||||||||||
Share price at end of year(b) | $ | 27.28 | $ | 27.65 | $ | 23.59 | $ | 17.29 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN(c) | (1.34 | )% | 17.26 | % | 36.50 | % | (30.37 | )% | (10.55 | )% | |||||||||||||
SHARE PRICE TOTAL RETURN(c) | (1.34 | )% | 17.27 | % | 36.44 | % | (30.31 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 31,387 | $ | 49,793 | $ | 38,942 | $ | 25,932 | $ | 37,246 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.65 | % | 0.65 | % | 0.65 | % | 0.65 | % | 0.68 | % | |||||||||||||
Expenses, prior to Waivers | 0.94 | % | 0.91 | % | 0.90 | % | 0.89 | % | 0.94 | % | |||||||||||||
Net investment income (loss), after Waivers | 0.03 | % | (0.07 | )% | (0.24 | )% | (0.04 | )% | (0.36 | )% | |||||||||||||
Portfolio turnover rate(d) | 108 | % | 67 | % | 71 | % | 90 | % | 77 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(e) | $ | 0.05 | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.05 | ) |
(a) Based on average shares outstanding.
(b) The mean between the last bid and ask prices.
(c) 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.
(d) Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
(e) The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(f) Amount represents less than $0.005.
See Notes to Financial Statements.
55
Financial Highlights (Continued)
PowerShares Dynamic Utilities Portfolio (PUI)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of year | $ | 17.12 | $ | 14.96 | $ | 13.15 | $ | 19.01 | $ | 20.54 | |||||||||||||
Net investment income(a) | 0.41 | 0.48 | 0.52 | 0.54 | 0.45 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.38 | ) | 2.19 | 2.04 | (5.95 | ) | (1.53 | ) | |||||||||||||||
Total from investment operations | 0.03 | 2.67 | 2.56 | (5.41 | ) | (1.08 | ) | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.46 | ) | (0.51 | ) | (0.75 | ) | (0.45 | ) | (0.45 | ) | |||||||||||||
Net asset value at end of year | $ | 16.69 | $ | 17.12 | $ | 14.96 | $ | 13.15 | $ | 19.01 | |||||||||||||
Share price at end of year(b) | $ | 16.66 | $ | 17.13 | $ | 14.96 | $ | 13.13 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN(c) | 0.26 | % | 18.36 | % | 19.79 | % | (29.00 | )% | (5.34 | )% | |||||||||||||
SHARE PRICE TOTAL RETURN(c) | 0.02 | % | 18.42 | % | 19.97 | % | (29.11 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 43,393 | $ | 47,089 | $ | 38,139 | $ | 42,071 | $ | 39,929 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | |||||||||||||
Expenses, prior to Waivers | 0.77 | % | 0.89 | % | 0.95 | % | 0.82 | % | 0.86 | % | |||||||||||||
Net investment income, after Waivers | 2.45 | % | 3.12 | % | 3.71 | % | 3.44 | % | 2.32 | % | |||||||||||||
Portfolio turnover rate(d) | 71 | % | 68 | % | 81 | % | 68 | % | 64 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(e) | $ | (0.04 | ) | $ | (0.01 | ) | $ | (0.17 | ) | $ | 0.00 | (f) | $ | (0.05 | ) |
PowerShares NASDAQ Internet Portfolio (PNQI)
Year Ended April 30 | For the Period June 10, 2008 (g) Through | ||||||||||||||||||
2012 | 2011 | 2010 | April 30, 2009 | ||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||
Net asset value at beginning of period | $ | 41.37 | $ | 27.99 | $ | 17.89 | $ | 24.72 | |||||||||||
Net investment income (loss)(a) | (0.08 | ) | (0.06 | ) | (0.12 | ) | (0.08 | ) | |||||||||||
Net realized and unrealized gain (loss) on investments | (0.21 | ) | 13.44 | 10.22 | (6.74 | ) | |||||||||||||
Total from investment operations | (0.29 | ) | 13.38 | 10.10 | (6.82 | ) | |||||||||||||
Distributions to shareholders from: | |||||||||||||||||||
Return of capital | — | — | — | (0.01 | ) | ||||||||||||||
Net asset value at end of period | $ | 41.08 | $ | 41.37 | $ | 27.99 | $ | 17.89 | |||||||||||
Share price at end of period(b) | $ | 41.08 | $ | 41.40 | $ | 28.01 | $ | 17.88 | |||||||||||
NET ASSET VALUE, TOTAL RETURN(c) | (0.70 | )% | 47.80 | % | 56.46 | % | (27.56 | )%(h) | |||||||||||
SHARE PRICE TOTAL RETURN(c) | (0.77 | )% | 47.81 | % | 56.65 | % | (27.60 | )%(h) | |||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 63,678 | $ | 45,507 | $ | 15,396 | $ | 1,789 | |||||||||||
Ratio to average net assets of: | |||||||||||||||||||
Expenses | 0.60 | % | 0.60 | % | 0.60 | % | 0.60 | %(i) | |||||||||||
Net investment income (loss) | (0.22 | )% | (0.17 | )% | (0.46 | )% | (0.51 | )%(i) | |||||||||||
Portfolio turnover rate(d) | 23 | % | 20 | % | 23 | % | 25 | % | |||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(e) | $ | (0.04 | ) | $ | (0.10 | ) | $ | (0.13 | ) | $ | — |
(a) Based on average shares outstanding.
(b) The mean between the last bid and ask prices.
(c) 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.
(d) Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
(e) The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(f) Amount represents less than $0.005.
(g) Commencement of Investment Operations.
(h) The net asset value, total return from Fund Inception (June 12, 2008, the 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)%.
(i) Annualized.
See Notes to Financial Statements.
56
Notes to Financial Statements
PowerShares Exchange-Traded Fund Trust
April 30, 2012
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, 2012, the Trust offered fifty-eight portfolios. This report includes the following portfolios:
Full Name | Short Name | ||||||
PowerShares Dynamic Basic Materials Sector Portfolio (PYZ) | "Dynamic Basic Materials Sector Portfolio" | ||||||
PowerShares Dynamic Consumer Discretionary Sector Portfolio (PEZ) | "Dynamic Consumer Discretionary Sector Portfolio" | ||||||
PowerShares Dynamic Consumer Staples Sector Portfolio (PSL) | "Dynamic Consumer Staples Sector Portfolio" | ||||||
PowerShares Dynamic Energy Sector Portfolio (PXI) | "Dynamic Energy Sector Portfolio" | ||||||
PowerShares Dynamic Financial Sector Portfolio (PFI) | "Dynamic Financial Sector Portfolio" | ||||||
PowerShares Dynamic Healthcare Sector Portfolio (PTH) | "Dynamic Healthcare Sector Portfolio" | ||||||
PowerShares Dynamic Industrials Sector Portfolio (PRN) | "Dynamic Industrials Sector Portfolio" | ||||||
PowerShares Dynamic Technology Sector Portfolio (PTF) | "Dynamic Technology Sector Portfolio" | ||||||
PowerShares Dynamic Utilities Portfolio (PUI) | "Dynamic Utilities Portfolio" | ||||||
PowerShares NASDAQ Internet Portfolio (PNQI) | "NASDAQ Internet Portfolio" | ||||||
Each portfolio (a "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 market prices of each Fund's Shares may differ to some degree from the Fund's net asset value ("NAV"). 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 by Authorized Participants, Shares are not individually redeemable securities of the Funds.
The investment objective of each Fund is to seek investment results that generally correspond (before fees and expenses) to the price and yield of its respective index listed below (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 | ||||||
Dynamic Industrials Sector Portfolio | Dynamic Industrials Sector IntellidexSM Index | ||||||
57
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
Fund | Index | ||||||
Dynamic Technology Sector Portfolio | Dynamic Technology Sector 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 accounting principles generally accepted in the United States of America ("GAAP") 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. 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 reflect fair value may also be based on a screening process of an independent pricing service to indicate the degree of certainty, based
58
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
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 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
Index Risk. Unlike many investment companies, the Funds do not utilize an investing strategy that seeks returns in excess of each Fund's respective Underlying Index. Therefore, a Fund would not necessarily buy or sell a security unless that security is added or removed, respectively, from its respective Underlying Index, even if that security generally is underperforming.
Non-Diversified Fund Risk. Each of Dynamic Utilities Portfolio and NASDAQ Internet Portfolio is non-diversified and can invest a greater portion of assets in securities of individual issuers than can 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. This may increase the Fund's volatility and cause the performance of a relatively small number of issuers to have a greater impact on the Fund's performance.
Equity Risk. Equity risk is the risk that the value of the securities the Fund holds will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities the Fund holds participate or factors relating to specific companies in which the Fund invests. For example, an adverse event, such as an unfavorable earnings report, may depress the value of equity securities the Fund holds; the price of common stock may be particularly sensitive to general movements in the stock market; or a drop in the stock market may depress the price of most or all of the common stocks and other equity securities the Fund holds. In addition, common stock in the Fund's portfolio may decline in price if the issuer fails to make anticipated dividend payments because, among other reasons, the issuer of the security experiences a decline in its financial condition. Common stock is subordinated to preferred stocks, bonds and other debt instruments in a company's capital structure, in terms of priority to corporate income, and therefore will be subject to greater dividend risk than preferred stocks or debt instruments of such issuers.
59
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
Concentration Risk. A significant percentage of a Fund's Underlying Index may be composed of issuers in a single industry or sector of the economy. If a Fund is focused in an industry or sector, it may present more risks than if it were diversified broadly over numerous industries and sectors of the economy. At times, such industry or group of industries may be out of favor and underperform other industries or the market as a whole.
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.
Small and Medium Capitalization Company Risk. Investing in securities of small and medium capitalization companies involves greater risk than customarily is associated with investing in larger, more established companies. These companies' securities may be more volatile and less liquid than those of more established companies. These securities may have returns that vary, sometimes significantly, from the overall securities market. Often small and medium capitalization companies and the industries in which they focus are still evolving and, as a result, they may be more sensitive to changing market conditions.
C. Federal Income Taxes
Each Fund intends to comply with the provisions of the Internal Revenue Code of 1986, as amended (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 U.S. federal tax returns and tax returns in 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.
60
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
E. Expenses
Expenses of the Trust that are directly identifiable to a specific Fund are applied to that Fund. Expenses of the Trust that 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, sub-licensing fees related to its respective Underlying Index, any distribution fees or expenses, litigation expenses, fees payable to the Trust's Board members who are not "interested persons" (as defined in the 1940 Act) of the Trust or Invesco PowerShares Capital Management LLC (the "Adviser") (the "Independent Trustees"), expenses incurred in connection with the Board members' services, including travel expenses and legal fees of counsel for the Independent Trustees, and extraordinary expenses.
The NASDAQ Internet Portfolio has agreed to pay an annual unitary management fee to 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 distribution fees, if any, brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses.
To the extent a Fund invests in other investment companies, the expenses shown in the accompanying financial statements reflect the expenses of the Fund and do not include any expenses of the investment companies in which it invests. The effects of the investment companies' expenses are included in the realized and unrealized gain/loss on the investments in the investment companies.
F. Dividends and Distributions to Shareholders
Each Fund declares and pays dividends from net investment income, if any, to its shareholders quarterly and records such dividends on ex-dividend date. Each Fund distributes net realized taxable capital gains, if any, generally annually in cash and records them 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 of the 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. Securities Lending
The NASDAQ Internet Portfolio may lend portfolio securities having a market value up to one-third of the Fund's total assets. Such loans are secured by cash collateral equal to no less than 102% of the market
61
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
value of the loaned securities determined daily by the securities lending provider. Cash collateral received in connection with these loans is invested in an affiliated money market fund and is shown as such on the Schedule of Investments. It is a policy of this Fund to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to the Fund if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. The Fund could experience delays and costs in gaining access to the collateral. The Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, is included in Affiliated securities lending income on the Statement of Operations. The aggregate value of securities out on loan is shown on the Statement of Assets and Liabilities, if any.
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 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. 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 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 "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 (excluding interest expenses, brokerage commissions and other trading expenses, licensing fees, offering costs, taxes, expenses of the investment companies that are paid indirectly as a result of share ownership of the investment companies and extraordinary expenses) of each Fund other than the NASDAQ Internet Portfolio from exceeding 0.60% of the Fund's average daily net assets per year (the "Expense Cap"), at least until August 31, 2013. 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 Expense Agreement provides that the fees waived or expenses borne by the Adviser are subject to recapture by the Adviser for up to three years from the date the fee was waived 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 Expense Agreement does not apply to the NASDAQ Internet Portfolio.
62
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
The amounts available for potential future recapture by the Adviser under the Expense Agreement and the expiration schedule at April 30, 2012 are as follows:
Total Potential | Potential Recapture Amounts Expiring | ||||||||||||||||||
Recapture Amounts | 04/30/13 | 04/30/14 | 04/30/15 | ||||||||||||||||
Dynamic Basic Materials Sector Portfolio | $ | 257,714 | $ | 89,110 | $ | 94,698 | $ | 73,906 | |||||||||||
Dynamic Consumer Discretionary Sector Portfolio | 325,717 | 102,087 | 117,064 | 106,566 | |||||||||||||||
Dynamic Consumer Staples Sector Portfolio | 289,254 | 87,641 | 109,908 | 91,705 | |||||||||||||||
Dynamic Energy Sector Portfolio | 182,346 | 91,813 | 76,991 | 13,542 | |||||||||||||||
Dynamic Financial Sector Portfolio | 328,198 | 104,372 | 119,239 | 104,587 | |||||||||||||||
Dynamic Healthcare Sector Portfolio | 256,890 | 48,433 | 112,529 | 95,928 | |||||||||||||||
Dynamic Industrials Sector Portfolio | 271,418 | 83,520 | 106,180 | 81,718 | |||||||||||||||
Dynamic Technology Sector Portfolio | 283,568 | 87,252 | 102,827 | 93,489 | |||||||||||||||
Dynamic Utilities Portfolio | 283,025 | 98,255 | 107,230 | 77,540 |
The Trust has entered into a Distribution Agreement with Invesco 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 Distributor is an affiliate of the Adviser.
The Adviser has entered into a licensing agreement for each Fund with the following entities (each a "Licensor"):
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 Utilities Portfolio | NYSE Arca | ||||||
NASDAQ Internet Portfolio | NASDAQ OMX Group, Inc. | ||||||
Each Underlying Index name trademark is owned by its respective Licensor. These trademarks have been licensed to the Adviser for use with the Funds. Each Fund is entitled to use its Underlying Index pursuant to the Trust's sub-licensing agreement with the Adviser. The Funds (except for NASDAQ Internet Portfolio) are required to pay the sub-licensing fees that are shown on the Statements of Operations. 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 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.
63
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
Note 4. Investments in Affiliates
The Dynamic Financial Sector Portfolio'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 Fund's transactions in and earnings from the investment in Invesco Ltd. for the fiscal year ended April 30, 2012.
Dynamic Financial Sector Portfolio
Value April 30, 2011 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain/(Loss) | Value April 30, 2012 | Dividend Income | |||||||||||||||||||||||||
Invesco Ltd. | $ | — | $ | 475,972 | $ | (23,914 | ) | $ | (1,985 | ) | $ | (767 | ) | $ | 449,306 | $ | — |
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, yield curves, loss severities, default rates, discount rates, volatilities 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.
As of April 30, 2012, the securities in each Fund were valued based on Level 1 inputs (see Schedule of Investments for security categories). 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.
With respect to each Fund, during the fiscal year ended April 30, 2012, there were no significant transfers between investment levels.
64
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
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, 2012 and 2011:
2012 | 2011 | ||||||||||||||||||
Ordinary Income | Return of Capital | Ordinary Income | Return of Capital | ||||||||||||||||
Dynamic Basic Materials Sector Portfolio | $ | 838,951 | $ | — | $ | 1,632,096 | $ | — | |||||||||||
Dynamic Consumer Discretionary Sector Portfolio | 149,036 | — | 142,120 | — | |||||||||||||||
Dynamic Consumer Staples Sector Portfolio | 566,981 | — | 712,831 | — | |||||||||||||||
Dynamic Energy Sector Portfolio | 960,095 | — | 444,392 | — | |||||||||||||||
Dynamic Financial Sector Portfolio | 214,150 | — | 315,046 | — | |||||||||||||||
Dynamic Healthcare Sector Portfolio | — | — | — | — | |||||||||||||||
Dynamic Industrials Sector Portfolio | 355,923 | — | 298,462 | — | |||||||||||||||
Dynamic Technology Sector Portfolio | — | — | — | 20,352 | |||||||||||||||
Dynamic Utilities Portfolio | 1,320,323 | — | 1,369,784 | — | |||||||||||||||
NASDAQ Internet Portfolio | — | — | — | — |
Tax Components of Net Assets at Fiscal Year-End:
Undistributed Ordinary Income | Temporary Book/Tax Differences | Net Unrealized Appreciation (Depreciation) | Capital Loss Carryforward | Late-Year Ordinary/ Post-October Capital Deferrals* | Shares of Beneficial Interest | Total Net Assets | |||||||||||||||||||||||||
Dynamic Basic Materials Sector Portfolio | $ | 135,618 | $ | (6,203 | ) | $ | 4,728,817 | $ | (13,906,475 | ) | $ | (4,051,657 | ) | $ | 80,023,431 | $ | 66,923,531 | ||||||||||||||
Dynamic Consumer Discretionary Sector Portfolio | 21,151 | (5,227 | ) | 2,872,784 | (7,280,895 | ) | (1,205,998 | ) | 25,035,039 | 19,436,854 | |||||||||||||||||||||
Dynamic Consumer Staples Sector Portfolio | 136,426 | (5,907 | ) | 5,359,296 | (8,788,033 | ) | (1,742,189 | ) | 44,171,635 | 39,131,228 | |||||||||||||||||||||
Dynamic Energy Sector Portfolio | 120,800 | (6,735 | ) | (241,669 | ) | (15,016,180 | ) | (4,690,317 | ) | 161,395,968 | 141,561,867 | ||||||||||||||||||||
Dynamic Financial Sector Portfolio | 38,453 | (5,380 | ) | 1,576,674 | (10,644,884 | ) | (622,629 | ) | 27,728,870 | 18,071,104 | |||||||||||||||||||||
Dynamic Healthcare Sector Portfolio | 29,023 | (7,553 | ) | 3,597,359 | (47,584,802 | ) | (3,333,991 | ) | 84,433,801 | 37,133,837 | |||||||||||||||||||||
Dynamic Industrials Sector Portfolio | 111,171 | (6,481 | ) | 1,305,254 | (38,582,988 | ) | (3,149,764 | ) | 70,340,123 | 30,017,315 | |||||||||||||||||||||
Dynamic Technology Sector Portfolio | 11,330 | (5,980 | ) | 4,309,819 | (26,376,224 | ) | (1,868,421 | ) | 55,316,277 | 31,386,801 | |||||||||||||||||||||
Dynamic Utilities Portfolio | 141,853 | (6,168 | ) | 547,811 | (13,822,519 | ) | (2,725,165 | ) | 59,257,666 | 43,393,478 | |||||||||||||||||||||
NASDAQ Internet Portfolio(a) | — | — | 6,911,726 | (78,223 | ) | (1,637,124 | ) | 58,481,792 | 63,678,171 |
* Includes Capital losses incurred after October 31 ("Post-October Capital Losses") and the combination of ordinary losses incurred after December 31 within the taxable year and specified losses incurred after October 31 within the taxable year ("Late-Year Ordinary Losses"), which are deemed to arise on the first business day of each Fund's next taxable year.
(a) The NASDAQ Internet Portfolio incurred and will elect to defer Late-Year Ordinary Losses and Post-October Capital Losses of $9,714 and $1,627,410, respectively.
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 Regulated Investment Company Modernization Act of 2010 (the "Act") eliminated the eight-year carryover period for capital losses that arise in taxable years beginning after its enactment date
65
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
of December 22, 2010. Consequently, these capital losses can be carried forward for an unlimited period. However, capital losses with an expiration period may not be used to offset capital gains until all net capital-losses without an expiration date have been utilized. Additionally, post-enactment capital loss carryforwards will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The following Funds had capital loss carryforward amounts as of April 30, 2012, which expire on April 30 of each year listed below:
Post-effective no expiration | |||||||||||||||||||||||||||||||||||
2015 | 2016 | 2017 | 2018 | 2019 | Short-term | Long-term | Total* | ||||||||||||||||||||||||||||
Dynamic Basic Materials Sector Portfolio | $ | — | $ | 205,528 | $ | 3,783,798 | $ | 4,534,904 | $ | 2,521,492 | $ | 2,860,753 | $ | — | $ | 13,906,475 | |||||||||||||||||||
Dynamic Consumer Discretionary SectorPortfolio | — | 1,246,058 | 1,993,654 | — | 2,042,056 | 1,999,127 | — | 7,280,895 | |||||||||||||||||||||||||||
Dynamic Consumer Staples Sector Portfolio | — | 634,544 | 2,156,980 | 3,935,363 | 1,180,566 | 880,580 | — | 8,788,033 | |||||||||||||||||||||||||||
Dynamic Energy Sector Portfolio | — | 880,885 | 2,869,667 | 3,914,682 | 1,167,692 | 6,183,254 | — | 15,016,180 | |||||||||||||||||||||||||||
Dynamic Financial Sector Portfolio | — | 614,940 | 1,821,971 | 4,413,894 | 1,979,006 | 1,795,598 | 19,475 | 10,644,884 | |||||||||||||||||||||||||||
Dynamic Healthcare Sector Portfolio | — | 2,234,184 | 17,890,879 | 18,737,951 | 2,739,963 | 5,955,546 | 26,279 | 47,584,802 | |||||||||||||||||||||||||||
Dynamic Industrials Sector Portfolio | — | 1,476,057 | 6,525,387 | 21,245,288 | 2,746,746 | 6,589,510 | — | 38,582,988 | |||||||||||||||||||||||||||
Dynamic Technology Sector Portfolio | — | 2,465,875 | 8,220,697 | 7,658,564 | 3,016,840 | 5,014,248 | — | 26,376,224 | |||||||||||||||||||||||||||
Dynamic Utilities Portfolio | 430,964 | 2,124,736 | 1,366,073 | 5,885,935 | 874,386 | 1,540,225 | 1,600,200 | 13,822,519 | |||||||||||||||||||||||||||
NASDAQ Internet Portfolio** | — | — | — | 3,360 | 74,863 | — | — | 78,223 |
* 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, 2012, the NASDAQ Internet Portfolio utilized capital loss carryforwards of $94,498 to offset realized gains.
Note 7. Investment Transactions
For the fiscal year ended April 30, 2012, 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 | $ | 55,428,892 | $ | 57,284,248 | |||||||
Dynamic Consumer Discretionary Sector Portfolio | 17,288,147 | 17,878,504 | |||||||||
Dynamic Consumer Staples Sector Portfolio | 14,816,164 | 13,659,625 | |||||||||
Dynamic Energy Sector Portfolio | 163,563,785 | 164,440,412 | |||||||||
Dynamic Financial Sector Portfolio | 19,432,721 | 19,221,383 | |||||||||
Dynamic Healthcare Sector Portfolio | 55,766,186 | 55,331,954 | |||||||||
Dynamic Industrials Sector Portfolio | 76,747,643 | 75,276,416 | |||||||||
Dynamic Technology Sector Portfolio | 36,319,220 | 35,954,889 | |||||||||
Dynamic Utilities Portfolio | 35,911,683 | 36,899,197 | |||||||||
NASDAQ Internet Portfolio | 12,440,497 | 12,397,862 |
66
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
For the fiscal year ended April 30, 2012, in-kind transactions associated with creations and redemptions were as follows:
Securities Received | Securities Delivered | ||||||||||
Dynamic Basic Materials Sector Portfolio | $ | 63,642,415 | $ | 80,473,315 | |||||||
Dynamic Consumer Discretionary Sector Portfolio | 24,182,766 | 26,474,599 | |||||||||
Dynamic Consumer Staples Sector Portfolio | 26,628,949 | 30,772,621 | |||||||||
Dynamic Energy Sector Portfolio | 147,821,201 | 174,102,560 | |||||||||
Dynamic Financial Sector Portfolio | 20,255,818 | 24,178,069 | |||||||||
Dynamic Healthcare Sector Portfolio | 83,002,632 | 103,408,059 | |||||||||
Dynamic Industrials Sector Portfolio | 68,237,672 | 139,529,821 | |||||||||
Dynamic Technology Sector Portfolio | 36,704,327 | 53,048,583 | |||||||||
Dynamic Utilities Portfolio | 134,124,745 | 126,761,608 | |||||||||
NASDAQ Internet Portfolio | 32,527,047 | 14,449,036 |
Gains and losses on in-kind transactions are generally not considered taxable gains and losses for Federal income tax purposes.
At April 30, 2012, 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 Basic Materials Sector Portfolio | $ | 62,304,121 | $ | 4,728,817 | $ | 7,670,774 | $ | (2,941,957 | ) | ||||||||||
Dynamic Consumer Discretionary Sector Portfolio | 16,653,662 | 2,872,784 | 3,188,839 | (316,055 | ) | ||||||||||||||
Dynamic Consumer Staples Sector Portfolio | 33,874,537 | 5,359,296 | 5,921,600 | (562,304 | ) | ||||||||||||||
Dynamic Energy Sector Portfolio | 141,906,663 | (241,669 | ) | 7,736,638 | (7,978,307 | ) | |||||||||||||
Dynamic Financial Sector Portfolio | 16,497,307 | 1,576,674 | 1,825,615 | (248,941 | ) | ||||||||||||||
Dynamic Healthcare Sector Portfolio | 33,667,718 | 3,597,359 | 4,258,242 | (660,883 | ) | ||||||||||||||
Dynamic Industrials Sector Portfolio | 28,801,119 | 1,305,254 | 2,459,262 | (1,154,008 | ) | ||||||||||||||
Dynamic Technology Sector Portfolio | 27,163,355 | 4,309,819 | 4,922,004 | (612,185 | ) | ||||||||||||||
Dynamic Utilities Portfolio | 42,885,583 | 547,811 | 3,067,897 | (2,520,086 | ) | ||||||||||||||
NASDAQ Internet Portfolio | 62,614,188 | 6,911,726 | 10,854,375 | (3,942,649 | ) |
* Cost of investments on a tax basis, includes the adjustments for financial reporting purposes, as of the most recently completed Federal income tax reporting period-end.
67
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
Note 8. Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of in-kind transactions and utilization of book equalization, on April 30, 2012, 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, 2012, the reclassifications were as follows:
Undistributed Net Investment Income (Loss) | Undistributed Net Realized Gain (Loss) | Shares of Beneficial Interest | |||||||||||||
Dynamic Basic Materials Sector Portfolio | $ | 169,953 | $ | (10,555,353 | ) | $ | 10,385,400 | ||||||||
Dynamic Consumer Discretionary Sector Portfolio | (11,525 | ) | (4,128,865 | ) | 4,140,390 | ||||||||||
Dynamic Consumer Staples Sector Portfolio | 24,783 | (5,803,882 | ) | 5,779,099 | |||||||||||
Dynamic Energy Sector Portfolio | 23,400 | (19,319,987 | ) | 19,296,587 | |||||||||||
Dynamic Financial Sector Portfolio | 1,128 | (3,026,014 | ) | 3,024,886 | |||||||||||
Dynamic Healthcare Sector Portfolio | (5,884 | ) | (11,652,074 | ) | 11,657,958 | ||||||||||
Dynamic Industrials Sector Portfolio | (24,547 | ) | (4,831,119 | ) | 4,855,666 | ||||||||||
Dynamic Technology Sector Portfolio | (66,735 | ) | (4,552,374 | ) | 4,619,109 | ||||||||||
Dynamic Utilities Portfolio | 132,362 | 886,506 | (1,018,868 | ) | |||||||||||
NASDAQ Internet Portfolio | 159,413 | (5,303,632 | ) | 5,144,219 |
Note 9. Trustees' Fees
The Funds compensate each Independent Trustee. The Adviser, as a result of the unitary management fee, pays for such compensation on behalf of the NASDAQ Internet Portfolio. The Trustees who are affiliated with the Adviser (the "Non-Independent Trustees") of the Trust do not receive any Trustees' fees.
The Trust has adopted a deferred compensation plan (the "Plan"). Under the Plan, an Independent Trustee who 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 select 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. Transactions in capital shares for each Fund are disclosed in detail on the Statements of Changes in Net Assets.
68
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
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.
69
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 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 Utilities Portfolio and PowerShares NASDAQ Internet Portfolio (each an individual portfolio of PowerShares Exchange-Traded Fund Trust, hereafter referred to as the "Funds") at April 30, 2012, the results of each of their operations for the year then ended, the change in each of their net assets for each of the two years in the period then ended 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 Funds' 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, 2012 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Chicago, IL
June 25, 2012
70
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, 2012:
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 | 0 | % | 0 | % | |||||||
Dynamic Industrials Sector Portfolio | 100 | % | 100 | % | |||||||
Dynamic Technology Sector Portfolio | 0 | % | 0 | % | |||||||
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.
71
Supplemental Information
Trustees and Officers
The Independent Trustees, the Non-Independent 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, 2012.
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 During the Past 5 Years | ||||||||||||||||||
Ronn R. Bagge (54) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road 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) | 120 | None | ||||||||||||||||||
Todd J. Barre (54) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Trustee | Since 2010 | Assistant Professor of Business, Trinity Christian College (2010-Present); formerly 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 | 120 | None | ||||||||||||||||||
* This is the date the Independent 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, 2012, the Fund Complex consisted of the Trust's 58 portfolios and three other exchange-traded fund trusts with 62 portfolios advised by the Adviser.
72
Supplemental Information (Continued)
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 During the Past 5 Years | ||||||||||||||||||
Marc M. Kole (51) 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) | 120 | None | ||||||||||||||||||
Philip M. Nussbaum (50) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Trustee | Since 2003 | Chairman, Performance Trust Capital Partners (2004-Present) | 120 | None | ||||||||||||||||||
* This is the date the Independent 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, 2012, the Fund Complex consisted of the Trust's 58 portfolios and three other exchange-traded fund trusts with 62 portfolios advised by the Adviser.
73
Supplemental Information (Continued)
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 During the Past 5 Years | ||||||||||||||||||
Donald H. Wilson (52) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Chairman of the Board and Trustee | Trustee since 2006; Chair since 2012 | 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) | 120 | None | ||||||||||||||||||
* This is the date the Independent 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, 2012, the Fund Complex consisted of the Trust's 58 portfolios and three other exchange-traded fund trusts with 62 portfolios advised by the Adviser.
74
Supplemental Information (Continued)
Trustees and Officers (Continued)
The Non-Independent Trustees and the executive officers of the Trust, their term of office and length of time served, their principal business occupations during the past five years, the number of portfolios in the Fund Complex overseen by the Non-Independent Trustees and the other directorships, if any held by the Trustees are shown below.
Name, Address and Age of Non-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 Non- Independent Trustees | Other Directorships Held by Non-Independent Trustees During the Past 5 Years | ||||||||||||||||||
H. Bruce Bond (48) Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | 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) | 120 | None | ||||||||||||||||||
* This is the date the Non-Independent 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, 2012, the Fund Complex consisted of the Trust's 58 portfolios and three other exchange-traded fund trusts with 62 portfolios advised by the Adviser.
75
Supplemental Information (Continued)
Trustees and Officers (Continued)
Name, Address and Age of Non-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 Non- Independent Trustees | Other Directorships Held by Non-Independent Trustees During the Past 5 Years | ||||||||||||||||||
Kevin M. Carome (55) 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 | 120 | None | ||||||||||||||||||
* This is the date the Non-Independent 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, 2012, the Fund Complex consisted of the Trust's 58 portfolios and three other exchange-traded fund trusts with 62 portfolios advised by the Adviser.
76
Supplemental Information (Continued)
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 (37) Invesco Management Group, Inc. 11 Greenway Plaza Suite 1000 Houston, TX 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) | ||||||||||||
Benjamin Fulton (50) 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 (30) 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 Portfolio Manager, Invesco PowerShares Capital Management LLC (2007-2008); Research Analyst, Invesco PowerShares Capital Management LLC (2005-2007); Research Analyst and Trader, Ritchie Capital, a hedge fund operator (2003-2005) | ||||||||||||
David Warren (54) Invesco Canada Ltd. 5140 Yonge Street Suite 900 Toronto, Ontario M2N 6X7 | Vice President | Since 2009 | Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. and Chief Administrative Officer, North American Retail, Invesco Ltd. (2007-Present); formerly Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (2000-2006) | ||||||||||||
* This is the period for which the Officers began serving the Trust. Each Officer serves an indefinite term, until his or her successor is elected.
77
Supplemental Information (Continued)
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 | ||||||||||||
Christopher Joe (42) Invesco Management Group, Inc. 11 Greenway Plaza Suite 1000 Houston, TX 77046-1173 | Chief Compliance Officer | Since 2012 | U.S. Compliance Director, Invesco, Ltd.; Chief Compliance Officer, Invesco Investment Advisers, LLC (registered investment adviser); formerly, Assistant Fund Accounting Manager, Invesco, Ltd. | ||||||||||||
Sheri Morris (47) Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Treasurer | Since 2011 | Vice President, Treasurer and Principal Financial Officer, The Invesco Funds; Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) and Treasurer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Fund Trust. Formerly, Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.; Assistant Vice President and Assistant Treasurer, The Invesco Funds and Assistant Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc. | ||||||||||||
Anna Paglia (37) Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Secretary | Since 2011 | Head of Legal, Invesco PowerShares Capital Management LLC (2010-Present); formerly, Partner, K&L Gates LLP (formerly, Bell Boyd & Lloyd LLP) (2007-2010). Associate Counsel at Barclays Global Investors Ltd. (2004-2006) | ||||||||||||
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) 983-0903.
* This is the period for which the Officers began serving the Trust. Each Officer serves an indefinite term, until his or her successor is elected.
78
Board Considerations Regarding Approval of Continuation of Investment Advisory Agreement
At a meeting held on April 19, 2012, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust (the "Trust"), including the Independent Trustees, approved the continuation of the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the "Adviser") and the Trust for the following 56 series (each, a "Fund" and collectively, the "Funds"):
PowerShares Aerospace & Defense Portfolio
PowerShares Buyback AchieversTM Portfolio
PowerShares CleantechTM Portfolio
PowerShares Dividend AchieversTM Portfolio
PowerShares DWA Technical LeadersTM Portfolio
PowerShares Dynamic Banking Portfolio
PowerShares Dynamic Basic Materials Sector Portfolio
PowerShares Dynamic Biotechnology & Genome Portfolio
PowerShares Dynamic Building & Construction Portfolio
PowerShares Dynamic Consumer Discretionary Sector Portfolio
PowerShares Dynamic Consumer Staples Sector Portfolio
PowerShares Dynamic Energy Exploration & Production Portfolio
PowerShares Dynamic Energy Sector Portfolio
PowerShares Dynamic Financial Sector Portfolio
PowerShares Dynamic Food & Beverage Portfolio
PowerShares Dynamic Healthcare Sector Portfolio
PowerShares Dynamic Industrials Sector Portfolio
PowerShares Dynamic Insurance Portfolio
PowerShares Dynamic Large Cap Growth Portfolio
PowerShares Dynamic Large Cap Value Portfolio
PowerShares Dynamic Leisure and Entertainment Portfolio
PowerShares Dynamic MagniQuant Portfolio
PowerShares Dynamic Market Portfolio
PowerShares Dynamic Media Portfolio
PowerShares Dynamic Networking Portfolio
PowerShares Dynamic Oil & Gas Services Portfolio
PowerShares Dynamic OTC Portfolio
PowerShares Dynamic Pharmaceuticals Portfolio
PowerShares Dynamic Retail Portfolio
PowerShares Dynamic Semiconductors Portfolio
PowerShares Dynamic Software Portfolio
PowerShares Dynamic Technology Sector Portfolio
PowerShares Dynamic Utilities Portfolio
PowerShares Financial Preferred Portfolio
PowerShares FTSE RAFI US 1000 Portfolio
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio
PowerShares Fundamental Pure Large Core Portfolio
PowerShares Fundamental Pure Large Growth Portfolio
PowerShares Fundamental Pure Large Value Portfolio
PowerShares Fundamental Pure Mid Core Portfolio
PowerShares Fundamental Pure Mid Growth Portfolio
PowerShares Fundamental Pure Mid Value Portfolio
PowerShares Fundamental Pure Small Core Portfolio
PowerShares Fundamental Pure Small Growth Portfolio
PowerShares Fundamental Pure Small Value Portfolio
PowerShares Global Listed Private Equity Portfolio
PowerShares Golden Dragon Halter USX China Portfolio
PowerShares High Yield Equity Dividend AchieversTM Portfolio
PowerShares International Dividend AchieversTM Portfolio
PowerShares Lux Nanotech Portfolio
PowerShares Morningstar StockInvestor Core Portfolio
PowerShares S&P 500 High Quality Portfolio
PowerShares Water Resources Portfolio
PowerShares WilderHill Clean Energy Portfolio
PowerShares WilderHill Progressive Energy Portfolio
PowerShares Zacks Micro Cap Portfolio
79
Board Considerations Regarding Approval of 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 a Fund grows, (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 for the one-year, three-year, five-year and since-inception periods ended December 31, 2011, as applicable, including reports on the correlation and tracking error between each Fund's performance and the performance of its underlying index, as well as the Adviser's analysis of the tracking error between each Fund and its underlying index. The Trustees noted that for each applicable period 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 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 daily net assets for each Fund other than PowerShares Dividend AchieversTM Portfolio, PowerShares High Yield Equity Dividend AchieversTM Portfolio, PowerShares International Dividend AchieversTM Portfolio, PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Core Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio,
80
Board Considerations Regarding Approval of Continuation of Investment Advisory Agreement (Continued)
PowerShares Fundamental Pure Small Core Portfolio, PowerShares Fundamental Pure Small Growth Portfolio and PowerShares Fundamental Pure Small Value Portfolio;
• 0.40% of the Fund's average daily net assets for each of PowerShares Dividend AchieversTM Portfolio, PowerShares High Yield Equity Dividend AchieversTM Portfolio and PowerShares International Dividend AchieversTM Portfolio; and
• 0.29% of the Fund's average daily net assets for each of PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Core Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio, PowerShares Fundamental Pure Small Growth Portfolio and PowerShares Fundamental Pure Small Value Portfolio (for each of PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Mid Core Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio, PowerShares Fundamental Pure Small Growth Portfolio and PowerShares Fundamental Pure Small Value Portfolio, the Trustees noted that the advisory fee for each of these Funds was reduced to 0.29% effective June 16, 2011).
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, 2013, as set forth below:
• 0.60%, excluding interest expenses, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses 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, acquired fund fees and expenses and extraordinary expenses, for each of PowerShares Dividend AchieversTM Portfolio, PowerShares High Yield Equity Dividend AchieversTM Portfolio and PowerShares International Dividend AchieversTM Portfolio;
• 0.50%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for each of PowerShares Morningstar StockInvestor Core Portfolio and PowerShares S&P 500 High Quality Portfolio;
• 0.39%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for each of PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Core Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio, PowerShares Fundamental Pure Small Growth Portfolio and PowerShares Fundamental Pure Small Value Portfolio
81
Board Considerations Regarding Approval of Continuation of Investment Advisory Agreement (Continued)
(for each of PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Mid Core Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio, PowerShares Fundamental Pure Small Growth Portfolio and PowerShares Fundamental Pure Small Value Portfolio, the Trustees noted that the Expense Cap for each of these Funds was reduced to 0.39% effective June 16, 2011); and
• 0.60%, excluding interest expenses, licensing fees, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses 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 with comparable investment strategies as the Funds, except for PowerShares FTSE RAFI US 1000 Portfolio, and further noted the Adviser's representation that the advisory fee charged to the PowerShares FTSE RAFI US 1000 Portfolio was not higher than the fee the Adviser charged to its other clients with comparable investment strategies. The Trustees noted that each Fund's advisory fee (for the year ended December 31, 2011) 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 Global Listed Private Equity Portfolio and PowerShares Golden Dragon Halter USX China Portfolio, which was equal to or 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 Dynamic Large Cap Growth Portfolio, PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Growth Portfolio and PowerShares Fundamental Pure Small Value Portfolio, which was lower than the median advisory fee of its open-end index peer funds; and there was no comparable data for PowerShares Aerospace & Defense Portfolio, PowerShares CleantechTM Portfolio, PowerShares Dynamic Banking Portfolio, PowerShares Dynamic Basic Materials Sector Portfolio, PowerShares Dynamic Biotechnology & Genome Portfolio, PowerShares Dynamic Building & Construction Portfolio, PowerShares Dynamic Consumer Discretionary Sector Portfolio, PowerShares Dynamic Consumer Staples Sector Portfolio, PowerShares Dynamic Financial Sector Portfolio, PowerShares Dynamic Food & Beverage Portfolio, PowerShares Dynamic Healthcare Sector Portfolio, PowerShares Dynamic Industrials Sector Portfolio, PowerShares Dynamic Insurance Portfolio, PowerShares Dynamic Leisure and Entertainment Portfolio, PowerShares Dynamic Media Portfolio, PowerShares Dynamic Pharmaceuticals Portfolio, PowerShares Dynamic Retail Portfolio, PowerShares Financial Preferred Portfolio, PowerShares Global Listed Private Equity Portfolio or PowerShares Golden Dragon Halter USX China 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, the distinguishing factors of the Funds, and the higher administrative, operational and management oversight
82
Board Considerations Regarding Approval of Continuation of Investment Advisory Agreement (Continued)
costs for the Adviser. With respect to the Funds' expense ratios, the Trustees noted that the net expense ratio for each Fund (for the year ended December 31, 2011) 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, PowerShares Golden Dragon Halter USX China Portfolio and PowerShares S&P 500 High Quality Portfolio, which was equal to or 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 Dividend AchieversTM Portfolio, PowerShares DWA Technical LeadersTM Portfolio, PowerShares Dynamic Energy Exploration & Production Portfolio, PowerShares Dynamic Energy Sector Portfolio, PowerShares Dynamic Large Cap Growth Portfolio, PowerShares Dynamic Large Cap Value Portfolio, PowerShares Dynamic Networking Portfolio, PowerShares Oil & Gas Services Portfolio, PowerShares Dynamic OTC Portfolio, PowerShares Dynamic Semiconductors Portfolio, PowerShares Dynamic Software Portfolio, PowerShares Dynamic Technology Sector Portfolio, PowerShares Dynamic Utilities Sector Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Core Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio, PowerShares Fundamental Pure Small Growth Portfolio, PowerShares Fundamental Pure Small Value Portfolio, PowerShares High Yield Equity Dividend AchieversTM Portfolio, PowerShares Lux Nanotech Portfolio, PowerShares S&P 500 High Quality Portfolio, PowerShares Water Resources Portfolio, PowerShares WilderHill Clean Energy Portfolio and PowerShares WilderHill Progressive Energy Portfolio, which was lower than the median expense ratio of its open-end index peer funds; and there was no comparable data for PowerShares Aerospace & Defense Portfolio, PowerShares CleantechTM Portfolio, PowerShares Dynamic Banking Portfolio, PowerShares Dynamic Basic Materials Sector Portfolio, PowerShares Dynamic Biotechnology & Genome Portfolio, PowerShares Dynamic Building & Construction Portfolio, PowerShares Dynamic Consumer Discretionary Sector Portfolio, PowerShares Dynamic Consumer Staples Sector Portfolio, PowerShares Dynamic Financial Sector Portfolio, PowerShares Dynamic Food & Beverage Portfolio, PowerShares Dynamic Healthcare Sector Portfolio, PowerShares Dynamic Industrials Sector Portfolio, PowerShares Dynamic Insurance Portfolio, PowerShares Dynamic Leisure and Entertainment Portfolio, PowerShares Dynamic Media Portfolio, PowerShares Dynamic Pharmaceuticals Portfolio, PowerShares Dynamic Retail Portfolio, PowerShares Financial Preferred Portfolio, PowerShares Global Listed Private Equity Portfolio or PowerShares Golden Dragon Halter USX China 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, and noted those Funds for which license fees are included in the Funds' Expense Caps.
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.
83
Board Considerations Regarding Approval of Continuation of Investment Advisory Agreement (Continued)
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 Portfolio 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 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.
84
Board Considerations Regarding Approval of Continuation of Investment Advisory Agreement
At a meeting held on April 19, 2012, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust (the "Trust"), including the Independent Trustees, approved the continuation of the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the "Adviser") and the Trust for PowerShares NASDAQ Internet Portfolio and PowerShares S&P 500 BuyWrite Portfolio (each, a "Fund" and collectively, the "Funds").
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 a Fund grows, (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 for the one-year, three-year and since-inception (June 12, 2008 for PowerShares NASDAQ Internet Portfolio and December 20, 2007 for PowerShares S&P 500 BuyWrite Portfolio) periods ended December 31, 2011, including reports on the correlation and tracking error between each Fund's performance and the performance of its underlying index, as well as the Adviser's analysis of the tracking error between each Fund and its underlying index. The Trustees noted that for each period 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 the annual unitary advisory fee is 0.60% for PowerShares NASDAQ Internet Portfolio and 0.75% for PowerShares S&P 500 BuyWrite Portfolio, and that the Adviser pays all other operating expenses of each
85
Board Considerations Regarding Approval of Continuation of Investment Advisory Agreement (Continued)
Fund, except that each Fund pays its brokerage commissions and other trading expenses, taxes, interest and extraordinary expenses.
The Trustees noted that the Adviser represented that it does not provide investment advisory services to any clients with comparable investment strategies as the Funds. The Trustees noted that PowerShares NASDAQ Internet Portfolio's advisory fee was higher than the median expense ratio of its ETF peer funds, but was lower than the median expense ratios of its open-end index peer funds and open-end actively-managed peer funds. The Trustees noted that PowerShares S&P 500 BuyWrite Portfolio's advisory fee was lower than the median expense ratios of its open-end index peer funds and open-end actively-managed peer funds. The Trustees also noted that there were no comparable ETFs for PowerShares S&P 500 BuyWrite Portfolio. The Trustees noted that each Fund's advisory fee was reasonable because of the complexity of the indices, 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 each Fund 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 relationships 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.
86
This page intentionally left blank
This page intentionally left blank
PROXY VOTING POLICIES AND PROCEDURES
A description of the Trust's 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) 983-0903. 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) 983-0903; or (ii) accessing the Trust's Form N-PX on the Commission's website at www.sec.gov.
QUARTERLY PORTFOLIOS
The Trust files its complete schedule of portfolio holdings for the Funds 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, DC; 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
© 2012 Invesco PowerShares Capital Management LLC P-PS-AR-3
2012 Annual Report to Shareholders
April 30, 2012
PowerShares Dynamic Large Cap Growth Portfolio (PWB)
PowerShares Dynamic Large Cap Value Portfolio (PWV)
PowerShares Fundamental Pure Large Core Portfolio (PXLC)
PowerShares Fundamental Pure Large Growth Portfolio (PXLG)
PowerShares Fundamental Pure Large Value Portfolio (PXLV)
PowerShares Fundamental Pure Mid Core Portfolio (PXMC)
PowerShares Fundamental Pure Mid Growth Portfolio (PXMG)
PowerShares Fundamental Pure Mid Value Portfolio (PXMV)
PowerShares Fundamental Pure Small Core Portfolio (PXSC)
PowerShares Fundamental Pure Small Growth Portfolio (PXSG)
PowerShares Fundamental Pure Small Value Portfolio (PXSV)
PowerShares Zacks Micro Cap Portfolio (PZI)
Table of Contents
The Market Environment | 2 | ||||||||||
Manager's Analysis | 4 | ||||||||||
Frequency Distribution of Discounts & Premiums | 28 | ||||||||||
Fees and Expenses | 30 | ||||||||||
Fundamental Pure and Style Portfolios | |||||||||||
Schedules of Investments | |||||||||||
PowerShares Dynamic Large Cap Growth Portfolio (PWB) | 32 | ||||||||||
PowerShares Dynamic Large Cap Value Portfolio (PWV) | 33 | ||||||||||
PowerShares Fundamental Pure Large Core Portfolio (PXLC | 34 | ||||||||||
PowerShares Fundamental Pure Large Growth Portfolio (PXLG) | 35 | ||||||||||
PowerShares Fundamental Pure Large Value Portfolio (PXLV) | 36 | ||||||||||
PowerShares Fundamental Pure Mid Core Portfolio (PXMC) | 38 | ||||||||||
PowerShares Fundamental Pure Mid Growth Portfolio (PXMG) | 40 | ||||||||||
PowerShares Fundamental Pure Mid Value Portfolio (PXMV) | 42 | ||||||||||
PowerShares Fundamental Pure Small Core Portfolio (PXSC) | 45 | ||||||||||
PowerShares Fundamental Pure Small Growth Portfolio (PXSG) | 51 | ||||||||||
PowerShares Fundamental Pure Small Value Portfolio (PXSV) | 57 | ||||||||||
PowerShares Zacks Micro Cap Portfolio (PZI) | 65 | ||||||||||
Statements of Assets and Liabilities | 70 | ||||||||||
Statements of Operations | 72 | ||||||||||
Statements of Changes in Net Assets | 74 | ||||||||||
Financial Highlights | 78 | ||||||||||
Notes to Financial Statements | 84 | ||||||||||
Report of Independent Registered Public Accounting Firm | 98 | ||||||||||
Tax Information | 99 | ||||||||||
Trustees and Officers | 100 | ||||||||||
Board Considerations Regarding Approval of Continuation of Investment Advisory Agreement | 107 | ||||||||||
Board Considerations Regarding Approval of Investment Advisory Agreements for PowerShares Fundamental Pure Large Growth Portfolio and PowerShares Fundamental Pure Large Value Portfolio | 113 | ||||||||||
The Market Environment
Equity markets were volatile during the fiscal year ended April 30, 2012, but the broad market, as measured by the S&P 500® Index, still managed to post a small gain. While corporate earnings remained strong, investor enthusiasm was tempered by continuing high unemployment, sluggish consumer spending and soft housing data for most of the year. Although markets stabilized and remained generally positive in the spring and early summer, major equity indices sold off precipitously in August as the U.S. government struggled to raise the nation's debt ceiling. This led credit rating agency Standard & Poor's to announce its first-ever ratings downgrade to long-term U.S. government debt. Uncertainty created by the downgrade, combined with continuing concern about the debt crisis in the eurozone, reignited fears of a recession and pressured markets downward into the fall. As signs of muted but sustained economic growth mounted, equity markets moved off their October lows and posted strong gains through the close of the reporting period with the S&P 500® Index returning 12.8% from the end of October 2011 to the end of April 2012.
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 generally correspond (before fees and expenses) to the price and yield of the Dynamic Large Cap Growth IntellidexSM Index (the "Index"). The Fund generally will invest at least 90% of its total assets in large capitalization U.S. growth stocks that comprise the Index. The Index seeks to include stocks based on their capital appreciation potential. The Index applies apply a rigorous ten-factor style isolation process to objectively segregate companies into their appropriate investment style and size universe.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned 7.12%. On a Net Asset Value ("NAV") basis, the Fund returned 7.18%. During the same reporting period, the Index returned 7.89%, while the S&P 500® Growth Index returned 8.12%, the Russell 1000® Growth Index returned 7.26% and the S&P 500® Index returned 4.73%. The Fund benefited most from positive performance of securities of companies in the information technology, consumer discretionary, and consumer staples sectors. The Fund was hurt most by exposure to the industrials, materials, and financials sectors.
At the single stock level, the Fund benefited most from exposure to Apple, Inc. (portfolio average weight of 3.54%), Visa Inc. (portfolio average weight of 3.47%), and MasterCard, Inc. (portfolio average weight of 2.73%). The leading detractors to the Fund were Halliburton Co. (portfolio average weight of 1.62%) and Netflix, Inc. (portfolio average weight of 0.19%).
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Consumer Discretionary | 35.9 | ||||||
Information Technology | 30.1 | ||||||
Consumer Staples | 12.2 | ||||||
Industrials | 11.6 | ||||||
Health Care | 5.8 | ||||||
Financials | 2.9 | ||||||
Energy | 1.5 | ||||||
Money Market Fund | 0.1 | ||||||
Liabilities in excess of other assets | (0.1 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Large-Cap Growth | 79.0 | ||||||
Large-Cap Value | 21.0 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
Apple, Inc. | 3.5 | ||||||
Home Depot, Inc. (The) | 3.5 | ||||||
MasterCard, Inc., Class A | 3.4 | ||||||
Philip Morris International, Inc. | 3.4 | ||||||
NIKE, Inc., Class B | 3.3 | ||||||
Visa, Inc., Class A | 3.3 | ||||||
Comcast Corp., Class A | 3.3 | ||||||
EMC Corp. | 3.3 | ||||||
United Parcel Service, Inc., Class B | 3.2 | ||||||
QUALCOMM, Inc. | 3.2 | ||||||
Total | 33.4 |
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, 2012 | ||||||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Dynamic Large Cap Growth IntellidexSM Index | 7.89 | % | 21.11 | % | 2.75 | % | 4.50 | % | 37.03 | % | |||||||||||||
S&P 500® Growth Index | 8.12 | % | 20.49 | % | 3.84 | % | 5.41 | % | 45.91 | % | |||||||||||||
Russell 1000® Growth Index | 7.26 | % | 21.44 | % | 4.11 | % | 6.04 | % | 52.26 | % | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 4.25 | % | 34.71 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | 7.18 | % | 20.20 | % | 2.05 | % | 3.78 | % | 30.45 | % | |||||||||||||
Share Price Return | 7.12 | % | 20.20 | % | 2.03 | % | 3.75 | % | 30.19 | % |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.64%. The Financial Highlights section of this Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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® 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 279, 588 and 500 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from the closest month-end to the Fund's inception date.
†† Average Annualized.
5
Manager's Analysis
PowerShares Dynamic Large Cap Value Portfolio (ticker: PWV)
The PowerShares Dynamic Large Cap Value Portfolio (the "Fund") seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dynamic Large Cap Value IntellidexSM Index (the "Index"). The Fund generally will invest at least 90% of its total assets in larger capitalization U.S. value stocks that comprise the Index. The Index is designed to provide capital appreciation while maintaining consistent stylistically accurate exposure. The Style Intellidexes apply a rigorous ten-factor style isolation process to objectively segregate companies into their appropriate investment style and size universe.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned 4.20%. On a Net Asset Value ("NAV") basis, the Fund returned 4.34%. During the same reporting period, the Index returned 4.96%, while the S&P 500® Value Index returned 1.29%, the Russell 1000® Value Index returned 1.03% and the S&P 500® Index returned 4.73%. The Fund benefited most from positive performance of securities of companies in the health care, consumer staples, and industrials sectors. The Fund was hurt most by exposure to the financials and materials sectors.
At the single stock level, the Fund benefited most from exposure to Abbott Laboratories (portfolio average weight of 3.21%), and Altria Group, Inc. (portfolio average weight of 2.32%). The leading detractors to the Fund were Freeport-McMoRan Copper & Gold, Inc. (portfolio average weight of 0.77%) and Hewlett-Packard Co. (portfolio average weight of 1.40%).
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Health Care | 20.8 | ||||||
Utilities | 14.4 | ||||||
Consumer Staples | 14.2 | ||||||
Energy | 12.3 | ||||||
Financials | 12.1 | ||||||
Information Technology | 9.2 | ||||||
Telecommunication Services | 7.0 | ||||||
Consumer Discretionary | 5.6 | ||||||
Industrials | 4.4 | ||||||
Other assets less liabilities | 0.0 |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Large-Cap Value | 74.8 | ||||||
Large-Cap Growth | 23.9 | ||||||
Mid-Cap Value | 1.3 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
JPMorgan Chase & Co. | 3.7 | ||||||
Abbott Laboratories | 3.6 | ||||||
AT&T, Inc. | 3.5 | ||||||
Pfizer, Inc. | 3.5 | ||||||
Altria Group, Inc. | 3.5 | ||||||
Verizon Communications, Inc. | 3.5 | ||||||
Merck & Co., Inc. | 3.4 | ||||||
Microsoft Corp. | 3.3 | ||||||
Johnson & Johnson | 3.3 | ||||||
Wal-Mart Stores, Inc. | 3.3 | ||||||
Total | 34.6 |
6
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, 2012 | ||||||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Dynamic Large Cap Value IntellidexSM Index | 4.96 | % | 18.92 | % | 3.08 | % | 7.54 | % | 68.28 | % | |||||||||||||
S&P 500® Value Index | 1.29 | % | 18.42 | % | (1.91 | )% | 2.98 | % | 23.41 | % | |||||||||||||
Russell 1000® Value Index | 1.03 | % | 18.32 | % | (1.73 | )% | 3.06 | % | 24.10 | % | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 4.25 | % | 34.71 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | 4.34 | % | 18.10 | % | 2.38 | % | 6.81 | % | 60.25 | % | |||||||||||||
Share Price Return | 4.20 | % | 18.04 | % | 2.36 | % | 6.77 | % | 59.88 | % |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses in the past, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.61%. The Financial Highlights section of this Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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® 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 368, 657 and 500 common stocks, respectively.
† Fund and Index returns are calculated from on the inception date of the Fund. Returns for the Benchmark Indices are calculated from the closest month-end to the Fund's inception date.
†† Average Annualized.
7
Manager's Analysis
PowerShares Fundamental Pure Large Core Portfolio (ticker: PXLC)
The PowerShares Fundamental Pure Large Core Portfolio (the "Fund") seeks investment results that generally correspond (before fees and expenses) to the price and yield of the RAFI® Fundamental Large Core Index (the "Index"). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index. The Index is composed of common stocks classified as "large" and "core" U.S. companies, including real estate investment trusts, from a universe comprised of the 2,500 largest U.S. companies.
Effective June 16, 2011, the Fund's name changed from PowerShares Dynamic Large Cap Portfolio to PowerShares Fundamental Pure Large Core Portfolio and the Index changed from Dynamic Large Cap IntellidexSM Index to RAFI® Fundamental Large Core Index. The Fund also changed its investment policies and ticker symbol from PJF to PXLC.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned 3.64%. On a Net Asset Value ("NAV") basis, the Fund returned 3.64%. During the same reporting period, the Index returned 5.63%, while the Dynamic Large Cap IntellidexSM Index returned 6.88%, the Russell Top 200® Index returned 5.94% and the S&P 500® Index returned 4.73%. The Fund benefited most from positive performance of securities of companies in the health care, financials, and telecommunication services sectors. The Fund was hurt most by exposure to the energy and industrials sectors.
At the single stock level, the Fund benefited most from exposure to Wells Fargo & Co. (portfolio average weight of 4.39%), AT&T, Inc. (portfolio average weight of 8.42%) and Intel Corp. (portfolio average weight of 3.80%). The leading detractors to the Fund were Caterpillar, Inc. (portfolio average weight of 0.39%), Hess Corp. (portfolio average weight of 0.68%) and Walgreen Co. (portfolio average weight of 1.14%).
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Information Technology | 16.8 | ||||||
Financials | 14.7 | ||||||
Industrials | 14.7 | ||||||
Health Care | 14.3 | ||||||
Consumer Staples | 13.6 | ||||||
Telecommunication Services | 8.1 | ||||||
Consumer Discretionary | 8.0 | ||||||
Utilities | 3.9 | ||||||
Energy | 3.3 | ||||||
Materials | 2.6 | ||||||
Money Market Fund | 0.2 | ||||||
Liabilities in excess of other assets | (0.2 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Large-Cap Value | 50.9 | ||||||
Large-Cap Growth | 44.8 | ||||||
Mid-Cap Value | 2.2 | ||||||
Mid-Cap Growth | 2.1 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
AT&T, Inc. | 8.1 | ||||||
Wells Fargo & Co. | 6.4 | ||||||
Johnson & Johnson | 5.5 | ||||||
Wal-Mart Stores, Inc. | 4.7 | ||||||
Microsoft Corp. | 4.5 | ||||||
International Business Machines Corp. | 4.3 | ||||||
Intel Corp. | 3.8 | ||||||
Kraft Foods, Inc., Class A | 2.5 | ||||||
Comcast Corp., Class A | 2.3 | ||||||
United Technologies Corp. | 2.1 | ||||||
Total | 44.2 |
8
Manager's Analysis (Continued)
PowerShares Fundamental Pure Large Core Portfolio (ticker: PXLC)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2012 | ||||||||||||||||||||||
Avg Ann††† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann††† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
RAFI® Fundamental Large Core Index†† | 5.63 | % | N/A | N/A | N/A | N/A | |||||||||||||||||
Dynamic Large Cap IntellidexSM Index†† | 6.88 | % | 18.97 | % | 2.52 | % | 3.76 | % | 22.11 | % | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 2.12 | % | 12.03 | % | |||||||||||||
Russell Top 200® Index | 5.94 | % | 18.70 | % | 0.89 | % | 1.94 | % | 11.00 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | 3.64 | % | 17.19 | % | 1.30 | % | 2.58 | % | 14.75 | % | |||||||||||||
Share Price Return | 3.64 | % | 17.21 | % | 1.30 | % | 2.56 | % | 14.67 | % |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.99%. The Financial Highlights section of this Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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 Dynamic Large Cap IntellidexSM Index, Russell Top 200® 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, 197 and 500 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from the closest month-end to the Fund's inception date.
†† Prior to June 16, 2011, the Fund sought to replicate, before fees and expenses, the performance of the Dynamic Large Cap IntellidexSM Index. Effective June 16, 2011 the Fund seeks to replicate, before fees and expenses, the performance of the RAFI® Fundamental Large Core Index. "1 Year," "3 Years," "5 Years" and "Fund Inception" performance for the RAFI® Fundamental Large Core Index was not available in the prior year because that Index did not commence calculation and publication until April 15, 2011.
††† Average Annualized.
9
Manager's Analysis
PowerShares Fundamental Pure Large Growth Portfolio (ticker: PXLG)
The PowerShares Fundamental Pure Large Growth Portfolio (the "Fund) seeks investment results that generally correspond (before fees and expenses) to the price and yield of the RAFI® Fundamental Large Growth Index (the "Index"). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index. The Index is comprised of common stocks classified as "large" and "growth" U.S. companies, including real estate investment trusts, from a universe comprised of the 2,500 largest U.S. companies.
The Fund began trading on June 16, 2011. For the period ended April 30, 2012, on a share price basis, the Fund returned 13.87%. On a Net Asset Value ("NAV") basis, the Fund returned 13.81%. During the same reporting period, the Index returned 14.14%, while the Russell 1000® Growth Index returned 10.02%, the S&P 500® Growth Index returned 9.98% and the S&P 500® Index returned 7.74%. The Fund benefited most from positive performance of securities of companies in the information technology, consumer staples, and consumer discretionary sectors. The Fund was hurt most by exposure to the energy sector.
At the single stock level, the Fund benefited most from exposure to Apple, Inc. (portfolio average weight of 4.71%), Microsoft Corp. (portfolio average weight of 6.46%) and Cisco Systems, Inc. (portfolio average weight of 4.04%). The leading detractors to the Fund were Goldman Sachs Group, Inc. (portfolio average weight of 2.54%), Baker Hughes, Inc. (portfolio average weight of 0.79%) and Halliburton Co. (portfolio average weight of 0.84%).
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Consumer Staples | 24.5 | ||||||
Information Technology | 20.4 | ||||||
Health Care | 19.3 | ||||||
Energy | 10.9 | ||||||
Consumer Discretionary | 8.8 | ||||||
Financials | 7.8 | ||||||
Materials | 4.7 | ||||||
Industrials | 2.7 | ||||||
Money Market Fund | 1.9 | ||||||
Telecommunication Services | 0.8 | ||||||
Liabilities in excess of other assets | (1.8 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Large-Cap Growth | 62.3 | ||||||
Large-Cap Value | 36.8 | ||||||
Mid-Cap Growth | 0.9 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
Procter & Gamble Co. (The) | 6.2 | ||||||
Merck & Co., Inc. | 6.0 | ||||||
Coca-Cola Co. (The) | 5.4 | ||||||
Berkshire Hathaway, Inc., Class B | 4.9 | ||||||
Apple, Inc. | 4.5 | ||||||
PepsiCo, Inc. | 4.4 | ||||||
Cisco Systems, Inc. | 4.1 | ||||||
Abbott Laboratories | 3.9 | ||||||
Philip Morris International, Inc. | 3.8 | ||||||
CVS Caremark Corp. | 3.4 | ||||||
Total | 46.6 |
10
Manager's Analysis (Continued)
PowerShares Fundamental Pure Large Growth Portfolio (ticker: PXLG)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2012 | ||||||
Fund Inception† Cumulative | |||||||
Index | |||||||
RAFI® Fundamental Large Growth Index | 14.14 | % | |||||
S&P 500® Growth Index | 9.98 | % | |||||
Russell 1000® Growth Index | 10.02 | % | |||||
S&P 500® Index | 7.74 | % | |||||
Fund | |||||||
NAV Return | 13.81 | % | |||||
Share Price Return | 13.87 | % |
Fund Inception: June 16, 2011
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.45%. The Financial Highlights section of this Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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 1000® Growth Index, S&P 500® 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 588, 279 and 500 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from the closest month-end to the Fund's inception date.
11
Manager's Analysis
PowerShares Fundamental Pure Large Value Portfolio (ticker: PXLV)
The PowerShares Fundamental Pure Large Value Portfolio (the "Fund") seeks investment results that generally correspond (before fees and expenses) to the price and yield of the RAFI® Fundamental Large Value Index (the "Index"). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index. The Index is comprised of common stocks classified as "large" and "value" U.S. companies, including real estate investment trusts, from a universe comprised of the 2,500 largest U.S. companies.
The Fund began trading on June 16, 2011. For the period ended April 30, 2012, on a share price basis, the Fund returned 5.23%. On a Net Asset Value ("NAV") basis, the Fund returned 5.17%. During the same reporting period, the Index returned 5.55%, while the Russell 1000® Value Index returned 4.25%, the S&P 500® Value Index returned 5.41% and the S&P 500® Index returned 7.74%. The Fund benefited most from positive performance of securities of companies in energy, consumer discretionary, and consumer staples sectors. The Fund was hurt most by exposure to the financials, information technology, and materials sectors.
At the single stock level, the Fund benefited most from exposure to Exxon Mobil Corp. (portfolio average weight of 9.09%), Pfizer, Inc. (portfolio average weight of 4.47%), and Verizon Communications, Inc. (portfolio average weight of 4.01%). The leading detractors to the Fund were Bank of America Corp. (portfolio average weight of 4.54%), Citigroup, Inc. (portfolio average weight of 3.81%) and Sprint Nextel Corp. (portfolio average weight of 0.59%).
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Financials | 30.8 | ||||||
Energy | 20.4 | ||||||
Industrials | 10.6 | ||||||
Utilities | 8.2 | ||||||
Health Care | 7.8 | ||||||
Consumer Discretionary | 7.3 | ||||||
Consumer Staples | 5.5 | ||||||
Telecommunication Services | 4.7 | ||||||
Materials | 2.4 | ||||||
Information Technology | 2.3 | ||||||
Money Market Fund | 1.0 | ||||||
Liabilities in excess of other assets | (1.0 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Large-Cap Value | 67.0 | ||||||
Large-Cap Growth | 24.9 | ||||||
Mid-Cap Growth | 4.7 | ||||||
Mid-Cap Value | 3.4 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
Exxon Mobil Corp. | 8.7 | ||||||
Bank of America Corp. | 6.6 | ||||||
General Electric Co. | 6.2 | ||||||
JPMorgan Chase & Co. | 5.3 | ||||||
Chevron Corp. | 5.1 | ||||||
Citigroup, Inc. | 4.6 | ||||||
Pfizer, Inc. | 4.4 | ||||||
Verizon Communications, Inc. | 4.0 | ||||||
ConocoPhillips | 3.3 | ||||||
Altria Group, Inc. | 2.0 | ||||||
Total | 50.2 |
12
Manager's Analysis (Continued)
PowerShares Fundamental Pure Large Value Portfolio (ticker: PXLV)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2012 | ||||||
Fund Inception† Cumulative | |||||||
Index | |||||||
RAFI® Fundamental Large Value Index | 5.55 | % | |||||
S&P 500® Value Index | 5.41 | % | |||||
Russell 1000® Value Index | 4.25 | % | |||||
S&P 500® Index | 7.74 | % | |||||
Fund | |||||||
NAV Return | 5.17 | % | |||||
Share Price Return | 5.23 | % |
Fund Inception: June 16, 2011
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.45%. The Financial Highlights section of this Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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 1000® Value Index, S&P 500® 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 657, 368 and 500 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from the closest month-end to the Fund's inception date.
13
Manager's Analysis
PowerShares Fundamental Pure Mid Core Portfolio (ticker: PXMC)
The PowerShares Fundamental Pure Mid Core Portfolio (the "Fund") seeks investment results that generally correspond (before fees and expenses) to the price and yield of the RAFI® Fundamental Mid Core Index (the "Index"). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index. The Index is comprised of common stocks classified as "mid" and "core" U.S. companies, including real estate investment trusts, from a universe comprised of the 2,500 largest U.S. companies.
Effective June 16, 2011, the Fund's name changed from PowerShares Dynamic Mid Cap Portfolio to PowerShares Fundamental Pure Mid Core Portfolio and the Index changed from Dynamic Mid Cap IntellidexSM Index to RAFI® Fundamental Mid Core Index. The Fund also changed its investment policies and ticker symbol from PJG to PXMC.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned (0.85)%. On a Net Asset Value ("NAV") basis, the Fund returned (0.93)%. During the same reporting period, the Index returned 0.15%, while the Dynamic Mid Cap IntellidexSM Index returned 1.24%, the S&P MidCap 400® Index returned (0.94)%, the Russell Midcap® Index returned (0.03)% and the S&P 500® Index returned 4.73%. The Fund benefited most from positive performance of securities of companies in the consumer discretionary, consumer staples, and utilities sectors. The Fund was hurt most by exposure to the telecommunication services, energy, and financials sectors.
At the single stock level, the Fund benefited most from exposure to Motorola Mobility Holdings Inc. (portfolio average weight of 1.00%), El Paso Corp. (portfolio average weight of 1.08%), and Biogen Idec, Inc. (portfolio average weight of 1.41%). The leading detractors to the Fund were Frontier Communications Corp. (portfolio average weight of 0.80%), Avon Products, Inc. (portfolio average weight of 0.86%) and MF Global Holdings Ltd. (portfolio average weight of 0.10%).
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Financials | 25.5 | ||||||
Industrials | 16.8 | ||||||
Consumer Discretionary | 16.0 | ||||||
Information Technology | 13.4 | ||||||
Energy | 8.4 | ||||||
Health Care | 6.2 | ||||||
Materials | 6.1 | ||||||
Consumer Staples | 5.4 | ||||||
Utilities | 1.1 | ||||||
Telecommunication Services | 1.0 | ||||||
Money Market Fund | 0.5 | ||||||
Liabilities in excess of other assets | (0.4 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Mid-Cap Value | 36.1 | ||||||
Mid-Cap Growth | 35.6 | ||||||
Large-Cap Value | 14.8 | ||||||
Large-Cap Growth | 7.5 | ||||||
Small-Cap Value | 3.1 | ||||||
Small-Cap Growth | 2.9 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
Discover Financial Services | 1.7 | ||||||
Becton, Dickinson and Co. | 1.6 | ||||||
Vornado Realty Trust | 1.6 | ||||||
Ameriprise Financial, Inc. | 1.6 | ||||||
Aon PLC | 1.5 | ||||||
Kohl's Corp. | 1.5 | ||||||
Equity Residential | 1.5 | ||||||
Boston Properties, Inc. | 1.4 | ||||||
Host Hotels & Resorts, Inc. | 1.3 | ||||||
VF Corp. | 1.3 | ||||||
Total | 15.0 |
14
Manager's Analysis (Continued)
PowerShares Fundamental Pure Mid Core Portfolio (ticker: PXMC)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2012 | ||||||||||||||||||||||
Avg Ann††† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann††† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
RAFI® Fundamental Mid Core Index†† | 0.15 | % | N/A | N/A | N/A | N/A | |||||||||||||||||
Dynamic Mid Cap IntellidexSM Index†† | 1.24 | % | 20.38 | % | 0.80 | % | 2.75 | % | 15.84 | % | |||||||||||||
S&P MidCap 400® Index | (0.94 | )% | 22.65 | % | 4.11 | % | 5.36 | % | 32.66 | % | |||||||||||||
Russell Midcap® Index | (0.03 | )% | 22.98 | % | 2.19 | % | 3.54 | % | 20.74 | % | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 2.12 | % | 12.03 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | (0.93 | )% | 18.85 | % | (0.21 | )% | 1.75 | % | 9.86 | % | |||||||||||||
Share Price Return | (0.85 | )% | 18.90 | % | (0.21 | )% | 1.77 | % | 9.98 | % |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 1.20%. The Financial Highlights section of this Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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 Dynamic Mid Cap IntellidexSM Index, S&P MidCap 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 150, 400, 782 and 500 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from the closest month-end to the Fund's inception date.
†† Prior to June 16, 2011, the Fund sought to replicate, before fees and expenses, the performance of the Dynamic Mid Cap IntellidexSM Index. Effective June 16, 2011 the Fund seeks to replicate, before fees and expenses, the performance of the RAFI® Fundamental Mid Core Index. "1 Year," "3 Years," "5 Years" and "Fund Inception" performance for the RAFI® Fundamental Mid Core Index was not available in the prior year because that Index did not commence calculation and publication until April 15, 2011.
††† Average Annualized.
15
Manager's Analysis
PowerShares Fundamental Pure Mid Growth Portfolio (ticker: PXMG)
The PowerShares Fundamental Pure Mid Growth Portfolio (the "Fund") seeks investment results that generally correspond (before fees and expenses) to the price and yield of the RAFI® Fundamental Mid Growth Index (the "Index"). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index. The Index is comprised of common stocks classified as "mid" and "growth" U.S. companies, including real estate investment trusts, from a universe comprised of the 2,500 largest U.S. companies.
Effective June 16, 2011, the Fund's name changed from PowerShares Dynamic Mid Cap Growth Portfolio to PowerShares Fundamental Pure Mid Growth Portfolio and the Index changed from Dynamic Mid Cap Growth IntellidexSM Index to RAFI® Fundamental Mid Growth Index. The Fund also changed its investment policies and ticker symbol from PWJ to PXMG.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned (5.83)%. On a Net Asset Value ("NAV") basis, the Fund returned (5.74)%. During the same reporting period, the Index returned (3.81)%, while the Dynamic Mid Cap Growth IntellidexSM Index returned 4.07%, the S&P MidCap 400® Growth Index returned (0.67)%, the Russell Midcap® Growth Index returned 0.78% and the S&P 500® Index returned 4.73%. The Fund benefited most from positive performance of securities of companies in the consumer discretionary, financials, and consumer staples sectors. The Fund was hurt most by exposure to the information technology, health care, and energy sectors.
At the single stock level, the Fund benefited most from exposure to O'Reilly Automotive, Inc. (portfolio average weight of 1.59%), Cummins, Inc. (portfolio average weight of 1.74%) and Ross Stores, Inc. (portfolio average weight of 0.95%). The leading detractors to the Fund were NII Holdings, Inc. (portfolio average weight of 0.74%), Joy Global Inc. (portfolio average weight of 0.98%) and Autodesk, Inc. (portfolio average weight of 0.76%).
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Industrials | 16.5 | ||||||
Information Technology | 16.0 | ||||||
Financials | 15.6 | ||||||
Consumer Discretionary | 14.0 | ||||||
Health Care | 13.8 | ||||||
Energy | 12.5 | ||||||
Materials | 6.5 | ||||||
Consumer Staples | 4.3 | ||||||
Telecommunication Services | 0.8 | ||||||
Money Market Fund | 0.1 | ||||||
Liabilities in excess of other assets | (0.1 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Mid-Cap Growth | 35.4 | ||||||
Large-Cap Growth | 33.4 | ||||||
Mid-Cap Value | 17.0 | ||||||
Large-Cap Value | 11.7 | ||||||
Small-Cap Value | 1.6 | ||||||
Small-Cap Growth | 0.9 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
BlackRock, Inc. | 2.2 | ||||||
Cummins, Inc. | 1.9 | ||||||
HCP, Inc. | 1.9 | ||||||
Mosaic Co. (The) | 1.9 | ||||||
Bed Bath & Beyond, Inc. | 1.8 | ||||||
Noble Energy, Inc. | 1.8 | ||||||
Precision Castparts Corp. | 1.7 | ||||||
Public Storage | 1.7 | ||||||
Western Digital Corp. | 1.7 | ||||||
Stryker Corp. | 1.7 | ||||||
Total | 18.3 |
16
Manager's Analysis (Continued)
PowerShares Fundamental Pure Mid Growth Portfolio (ticker: PXMG)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2012 | ||||||||||||||||||||||
Avg Ann††† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann††† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
RAFI® Fundamental Mid Growth Index†† | (3.81 | )% | N/A | N/A | N/A | N/A | |||||||||||||||||
Dynamic Mid Cap Growth IntellidexSM Index†† | 4.07 | % | 22.63 | % | 4.21 | % | 8.25 | % | 76.44 | % | |||||||||||||
S&P MidCap 400® Growth Index | (0.67 | )% | 24.32 | % | 6.13 | % | 8.12 | % | 74.94 | % | |||||||||||||
Russell Midcap® Growth Index | 0.78 | % | 23.57 | % | 3.55 | % | 6.83 | % | 60.59 | % | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 4.25 | % | 34.71 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | (5.74 | )% | 18.06 | % | 1.59 | % | 6.12 | % | 52.98 | % | |||||||||||||
Share Price Return | (5.83 | )% | 18.08 | % | 1.59 | % | 6.09 | % | 52.64 | % |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.69%. The Financial Highlights section of this Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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 Dynamic Mid Cap Growth IntellidexSM Index, S&P MidCap 400® 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 75, 232, 467 and 500 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from the closest month-end to the Fund's inception date.
†† Prior to June 16, 2011, the Fund sought to replicate, before fees and expenses, the performance of the Dynamic Mid Cap Growth IntellidexSM Index. Effective June 16, 2011 the Fund seeks to replicate, before fees and expenses, the performance of the RAFI® Fundamental Mid Growth Index. "1 Year," "3 Years," "5 Years" and "Fund Inception" performance for the RAFI® Fundamental Mid Growth Index was not available in the prior year because that Index did not commence calculation and publication until April 15, 2011.
††† Average Annualized.
17
Manager's Analysis
PowerShares Fundamental Pure Mid Value Portfolio (ticker: PXMV)
The PowerShares Fundamental Pure Mid Value Portfolio (the "Fund") seeks investment results that generally correspond (before fees and expenses) to the price and yield of the RAFI® Fundamental Mid Value Index (the "Index"). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index. The Index is comprised of common stocks classified as "mid" and "value" U.S. companies, including real estate investment trusts, from a universe comprised of the 2,500 largest U.S. companies.
Effective June 16, 2011, the Fund's name changed from PowerShares Dynamic Mid Cap Value Portfolio to PowerShares Fundamental Pure Mid Value Portfolio and the Index changed from Dynamic Mid Cap Value IntellidexSM Index to RAFI® Fundamental Mid Value Index. The Fund also changed its investment policies and ticker symbol from PWP to PXMV.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned 1.30%. On a Net Asset Value ("NAV") basis, the Fund returned 1.42%. During the same reporting period, the Index returned (1.50)%, while the Dynamic Mid Cap Value IntellidexSM Index returned 4.10%, the S&P Mid Cap 400® Value Index returned (1.20)%, the Russell MidCap Value® Index returned (0.81)% and the S&P 500® Index returned 4.73%. The Fund benefited most from positive performance of securities of companies in the consumer discretionary, utilities, and health care sectors. The Fund was hurt most by exposure to the financials, energy, and industrials sectors.
At the single stock level, the Fund benefited most from exposure to Seagate Technology PLC (portfolio average weight of 0.71%), Macy's, Inc. (portfolio average weight of 0.33%), and Rite Aid Corp. (portfolio average weight of 0.58%). The leading detractors to the Fund were Micron Technology, Inc. (portfolio average weight of 0.21%), Principal Financial Group, Inc. (portfolio average weight of 0.37%) and Eastman Kodak Co. (portfolio average weight of 0.15%).
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Consumer Discretionary | 22.7 | ||||||
Financials | 21.8 | ||||||
Utilities | 14.0 | ||||||
Industrials | 11.9 | ||||||
Materials | 8.3 | ||||||
Information Technology | 6.4 | ||||||
Consumer Staples | 5.4 | ||||||
Health Care | 4.9 | ||||||
Energy | 2.7 | ||||||
Telecommunication Services | 1.9 | ||||||
Money Market Fund | 0.3 | ||||||
Liabilities in excess of other assets | (0.3 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Mid-Cap Value | 49.4 | ||||||
Mid-Cap Growth | 22.9 | ||||||
Small-Cap Value | 12.3 | ||||||
Small-Cap Growth | 8.6 | ||||||
Large-Cap Growth | 4.1 | ||||||
Large-Cap Value | 2.7 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
Avon Products, Inc. | 1.1 | ||||||
Omnicom Group, Inc. | 1.0 | ||||||
Northeast Utilities | 1.0 | ||||||
CenterPoint Energy, Inc. | 1.0 | ||||||
M&T Bank Corp. | 1.0 | ||||||
Unum Group | 1.0 | ||||||
United States Steel Corp. | 0.9 | ||||||
Northern Trust Corp. | 0.9 | ||||||
Sara Lee Corp. | 0.9 | ||||||
NiSource, Inc. | 0.9 | ||||||
Total | 9.7 |
18
Manager's Analysis (Continued)
PowerShares Fundamental Pure Mid Value Portfolio (ticker: PXMV)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2012 | ||||||||||||||||||||||
Avg Ann††† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann††† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
RAFI® Fundamental Mid Value Index†† | (1.50 | )% | N/A | N/A | N/A | N/A | |||||||||||||||||
Dynamic Mid Cap Value IntellidexSM Index†† | 4.10 | % | 18.68 | % | (0.80 | )% | 4.31 | % | 35.28 | % | |||||||||||||
S&P Mid Cap 400® Value Index | (1.20 | )% | 20.99 | % | 2.08 | % | 6.16 | % | 53.46 | % | |||||||||||||
Russell MidCap Value® Index | (0.81 | )% | 22.43 | % | 0.50 | % | 5.68 | % | 48.55 | % | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 4.25 | % | 34.71 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | 1.42 | % | 16.94 | % | (1.88 | )% | 3.24 | % | 25.67 | % | |||||||||||||
Share Price Return | 1.30 | % | 17.00 | % | (1.90 | )% | 3.21 | % | 25.38 | % |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.91%. The Financial Highlights section of this Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this reports. 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 results that actual 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 Dynamic Mid Cap Value IntellidexSM Index, S&P MidCap 400® Value Index, Russell Mid 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 75, 299, 528 and 500 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from the closest month-end to the Fund's inception date.
†† Prior to June 16, 2011, the Fund sought to replicate, before fees and expenses, the performance of the Dynamic Mid Cap Value IntellidexSM Index. Effective June 16, 2011 the Fund seeks to replicate, before fees and expenses, the performance of the RAFI® Fundamental Mid Value Index. "1 Year," "3 Years," "5 Years" and "Fund Inception" performance for the RAFI® Fundamental Mid Value Index was not available in the prior year because that Index did not commence calculation and publication until April 15, 2011.
††† Average Annualized.
19
Manager's Analysis
PowerShares Fundamental Pure Small Core Portfolio (ticker: PXSC)
The PowerShares Fundamental Pure Small Core Portfolio (the "Fund") seeks investment results that generally correspond (before fees and expenses) to the price and yield of the RAFI® Fundamental Small Core Index (the "Index"). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index. The Index is comprised of common stocks classified as "small" and "core" U.S. companies, including real estate investment trusts, from a universe comprised of the 2,500 largest U.S. companies.
Effective June 16, 2011, the Fund's name changed from PowerShares Dynamic Small Cap Portfolio to PowerShares Fundamental Pure Small Core Portfolio and the Index changed from Dynamic Small Cap IntellidexSM Index to RAFI® Fundamental Small Core Index. The Fund also changed its investment policies and ticker symbol from PJM to PXSC.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned (3.85)%. On a Net Asset Value ("NAV") basis, the Fund returned (3.70)%. During the same reporting period, the Index returned (0.86)%, while the Dynamic Small Cap IntellidexSM Index returned (3.06)%, the S&P SmallCap 600® Index returned 1.07%, the Russell 2000® Index returned (4.25)% and the S&P 500® Index returned 4.73%. The Fund benefited most from positive performance of securities of companies in the consumer staples, consumer discretionary, and financials sectors. The Fund was hurt most by exposure to the energy, information technology, and materials sectors.
At the single stock level, the Fund benefited most from exposure to Sally Beauty Holdings Inc. (portfolio average weight of 0.57%), Polaris Industries, Inc. (portfolio average weight of 0.57%) and Alliance Data Systems Corp. (portfolio average weight of 0.59%). The leading detractors to the Fund were Timberland Co. (portfolio average weight of 0.09%), Impax Laboratories, Inc. (portfolio average weight of 0.17%) and Central European Distribution Corp. (portfolio average weight of 0.22%).
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Financials | 23.9 | ||||||
Industrials | 19.0 | ||||||
Information Technology | 15.2 | ||||||
Consumer Discretionary | 13.6 | ||||||
Health Care | 7.9 | ||||||
Materials | 6.4 | ||||||
Energy | 5.9 | ||||||
Consumer Staples | 5.2 | ||||||
Utilities | 1.9 | ||||||
Telecommunication Services | 0.9 | ||||||
Money Market Fund | 0.6 | ||||||
Liabilities in excess of other assets | (0.5 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Small-Cap Growth | 39.4 | ||||||
Small-Cap Value | 30.0 | ||||||
Mid-Cap Value | 15.5 | ||||||
Mid-Cap Growth | 15.1 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
Corrections Corp. of America | 0.8 | ||||||
Cinemark Holdings, Inc. | 0.7 | ||||||
Casey's General Stores, Inc. | 0.7 | ||||||
Fortune Brands Home & Security, Inc. | 0.7 | ||||||
J.B. Hunt Transport Services, Inc. | 0.7 | ||||||
Lincoln Electric Holdings, Inc. | 0.6 | ||||||
Jones Lang LaSalle, Inc. | 0.6 | ||||||
LSI Corp. | 0.6 | ||||||
BRE Properties, Inc. | 0.6 | ||||||
AptarGroup, Inc. | 0.6 | ||||||
Total | 6.6 |
20
Manager's Analysis (Continued)
PowerShares Fundamental Pure Small Core Portfolio (ticker: PXSC)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2012 | ||||||||||||||||||||||
Avg Ann††† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann††† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
RAFI® Fundamental Small Core Index†† | (0.86 | )% | N/A | N/A | N/A | N/A | |||||||||||||||||
Dynamic Small Cap IntellidexSM Index†† | (3.06 | )% | 19.02 | % | (0.43 | )% | 0.76 | % | 4.21 | % | |||||||||||||
S&P SmallCap 600® Index | 1.07 | % | 21.95 | % | 2.90 | % | 3.70 | % | 21.73 | % | |||||||||||||
Russell 2000® Index | (4.25 | )% | 20.34 | % | 1.45 | % | 2.10 | % | 11.90 | % | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 2.12 | % | 12.03 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | (3.70 | )% | 17.99 | % | (1.26 | )% | (0.09 | )% | (0.49 | )% | |||||||||||||
Share Price Return | (3.85 | )% | 18.02 | % | (1.28 | )% | (0.11 | )% | (0.62 | )% |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 1.41%. The Financial Highlights section of this Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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 Dynamic Small Cap IntellidexSM Index, S&P SmallCap 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 198, 600, 1,957 and 500 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from the closest month-end to the Fund's inception date.
†† Prior to June 16, 2011, the Fund sought to replicate, before fees and expenses, the performance of the Dynamic Small Cap IntellidexSM Index. Effective June 16, 2011 the Fund seeks to replicate, before fees and expenses, the performance of the RAFI® Fundamental Small Core Index. "1 Year," "3 Years," "5 Years" and "Fund Inception" performance for the RAFI® Fundamental Small Core Index was not available in the prior year because that Index did not commence calculation and publication until April 15, 2011.
††† Average Annualized.
21
Manager's Analysis
PowerShares Fundamental Pure Small Growth Portfolio (ticker: PXSG)
The PowerShares Fundamental Pure Small Growth Portfolio (the "Fund") seeks investment results that generally correspond (before fees and expenses) to the price and yield of the RAFI® Fundamental Small Growth Index (the "Index"). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index. The Index is comprised of common stocks classified as "small" and "growth" U.S. companies, including real estate investment trusts, from a universe comprised of the 2,500 largest U.S. companies.
Effective June 16, 2011, the Fund's name changed from PowerShares Dynamic Small Cap Growth Portfolio to PowerShares Fundamental Pure Small Growth Portfolio and the Index changed from Dynamic Small Cap Growth IntellidexSM Index to RAFI® Fundamental Small Growth Index. The Fund also changed its investment policies and ticker symbol from PWT to PXSG.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned (7.40)%. On a Net Asset Value ("NAV") basis, the Fund returned (7.20)%. During the same reporting period, the Index returned (4.44)%, while the Dynamic Small Cap Growth IntellidexSM Index returned (0.32)%, the S&P SmallCap 600® Growth Index returned 0.66%, the Russell 2000® Growth Index returned (4.42)% and the S&P 500® Index returned 4.73%. The Fund benefited most from positive performance of securities of companies in the financials, health care, and consumer staples sectors. The Fund was hurt most by exposure to the information technology, industrials, and energy sectors.
At the single stock level, the Fund benefited most from exposure to Monster Beverage Corp. (portfolio average weight of 0.68%), Equinix, Inc. (portfolio average weight of 0.83%), and LKQ Corp. (portfolio average weight of 0.86%). The leading detractors to the Fund were Sauer-Danfoss, Inc. (portfolio average weight of 0.35%), ION Geophysical Corp. (portfolio average weight of 0.27%) and Ancestry.com, Inc. (portfolio average weight of 0.38%).
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Information Technology | 23.7 | ||||||
Health Care | 16.7 | ||||||
Financials | 14.4 | ||||||
Consumer Discretionary | 14.0 | ||||||
Industrials | 12.4 | ||||||
Energy | 7.3 | ||||||
Materials | 6.4 | ||||||
Telecommunication Services | 2.6 | ||||||
Consumer Staples | 1.7 | ||||||
Utilities | 0.8 | ||||||
Money Market Fund | 0.2 | ||||||
Liabilities in excess of other assets | (0.2 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Small-Cap Growth | 44.3 | ||||||
Mid-Cap Growth | 32.4 | ||||||
Mid-Cap Value | 12.5 | ||||||
Small-Cap Value | 10.4 | ||||||
Large-Cap Growth | 0.4 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
BioMed Realty Trust, Inc. | 1.0 | ||||||
Senior Housing Properties Trust | 1.0 | ||||||
Level 3 Communications, Inc. | 0.9 | ||||||
LKQ Corp. | 0.9 | ||||||
Catalyst Health Solutions, Inc. | 0.9 | ||||||
SandRidge Energy, Inc. | 0.9 | ||||||
Dresser-Rand Group, Inc. | 0.8 | ||||||
W.R. Grace & Co. | 0.8 | ||||||
Cree, Inc. | 0.8 | ||||||
Solutia, Inc. | 0.8 | ||||||
Total | 8.8 |
22
Manager's Analysis (Continued)
PowerShares Fundamental Pure Small Growth Portfolio (ticker: PXSG)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2012 | ||||||||||||||||||||||
Avg Ann††† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann††† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
RAFI® Fundamental Small Growth Index†† | (4.44 | )% | N/A | N/A | N/A | N/A | |||||||||||||||||
Dynamic Small Cap Growth IntellidexSM Index†† | (0.32 | )% | 23.03 | % | 1.26 | % | 3.98 | % | 32.22 | % | |||||||||||||
S&P SmallCap 600® Growth Index | 0.66 | % | 23.71 | % | 4.47 | % | 6.60 | % | 58.13 | % | |||||||||||||
Russell 2000® Growth Index | (4.42 | )% | 21.83 | % | 3.27 | % | 5.88 | % | 50.65 | % | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 4.25 | % | 34.71 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | (7.20 | )% | 19.25 | % | (0.88 | )% | 2.31 | % | 17.74 | % | |||||||||||||
Share Price Return | (7.40 | )% | 19.25 | % | (0.90 | )% | 2.26 | % | 17.37 | % |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.93%. The Financial Highlights section of this Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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 Dynamic Small Cap Growth IntellidexSM Index, S&P SmallCap 600® 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 99, 327, 1,162 and 500 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from the closest month-end to the Fund's inception date.
†† Prior to June 16, 2011, the Fund sought to replicate, before fees and expenses, the performance of the Dynamic Small Cap Growth IntellidexSM Index. Effective June 16, 2011 the Fund seeks to replicate, before fees and expenses, the performance of the RAFI® Fundamental Small Growth Index. "1 Year," "3 Years," "5 Years" and "Fund Inception" performance for the RAFI® Fundamental Small Growth Index was not available in the prior year because that Index did not commence calculation and publication until April 15, 2011.
††† Average Annualized.
23
Manager's Analysis
PowerShares Fundamental Pure Small Value Portfolio (ticker: PXSV)
The PowerShares Fundamental Pure Small Value Portfolio (the "Fund") seeks investment results that generally correspond (before fees and expenses) to the price and yield of the RAFI® Fundamental Small Value Index (the "Index"). The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index. The Index is comprised of common stocks of "small value" U.S. companies, including real estate investment trusts, from a universe comprised of the 2,500 largest U.S. companies.
Effective June 16, 2011, the Fund's name changed from PowerShares Dynamic Small Cap Value Portfolio to PowerShares Fundamental Pure Small Value Portfolio and the Index changed from Dynamic Small Cap Value IntellidexSM Index to RAFI® Fundamental Small Value Index. The Fund also changed its investment policies and ticker symbol from PWY to PXSV.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned (3.18)%. On a Net Asset Value ("NAV") basis, the Fund returned (3.01)%. During the same reporting period, the Index returned (4.45)%, while the Dynamic Small Cap Value IntellidexSM Index returned (3.54)%, the S&P Small Cap 600 Value Index returned 1.59%, the Russell 2000® Value Index returned (4.06)% and the S&P 500® Index returned 4.73%. The Fund benefited most from positive performance of securities of companies in the financials, utilities, and consumer discretionary sectors. The Fund was hurt most by exposure to the energy, information technology, and industrials sectors.
At the single stock level, the Fund benefited most from exposure to Liz Claiborne, Inc. (portfolio average weight of 0.33%), RSC Holdings, Inc. (portfolio average weight of 0.26%), and Harleysville Group, Inc. (portfolio average weight of 0.34%). The leading detractors to the Fund were Career Education Corp. (portfolio average weight of 0.25%), W&T Offshore, Inc. (portfolio average weight of 0.29%), and RadioShack Corp. (portfolio average weight of 0.07%).
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Financials | 25.3 | ||||||
Consumer Discretionary | 20.5 | ||||||
Industrials | 20.2 | ||||||
Information Technology | 9.2 | ||||||
Materials | 6.1 | ||||||
Utilities | 5.0 | ||||||
Health Care | 5.0 | ||||||
Energy | 4.6 | ||||||
Consumer Staples | 3.2 | ||||||
Telecommunication Services | 0.9 | ||||||
Money Market Fund | 4.3 | ||||||
Liabilities in excess of other assets | (4.3 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Small-Cap Value | 61.0 | ||||||
Small-Cap Growth | 35.1 | ||||||
Mid-Cap Value | 2.7 | ||||||
Mid-Cap Growth | 1.2 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
Barnes & Noble, Inc. | 0.5 | ||||||
USG Corp. | 0.5 | ||||||
Collective Brands, Inc. | 0.5 | ||||||
Overseas Shipholding Group, Inc. | 0.4 | ||||||
Carlisle Cos., Inc. | 0.4 | ||||||
Lender Processing Services, Inc. | 0.4 | ||||||
Chemtura Corp. | 0.4 | ||||||
FirstMerit Corp. | 0.4 | ||||||
Bank of Hawaii Corp. | 0.4 | ||||||
Group 1 Automotive, Inc. | 0.4 | ||||||
Total | 4.3 |
24
Manager's Analysis (Continued)
PowerShares Fundamental Pure Small Value Portfolio (ticker: PXSV)
Growth of a $10,000 Investment Since Inception†
Fund Performance History (%) | As of April 30, 2012 | ||||||||||||||||||||||
Avg Ann††† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann††† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
RAFI® Fundamental Small Value Index†† | (4.45 | )% | N/A | N/A | N/A | N/A | |||||||||||||||||
Dynamic Small Cap Value IntellidexSM Index†† | (3.54 | )% | 18.12 | % | (0.66 | )% | 3.03 | % | 23.81 | % | |||||||||||||
S&P Small Cap 600® Value Index | 1.59 | % | 20.30 | % | 1.36 | % | 5.04 | % | 42.26 | % | |||||||||||||
Russell 2000® Value Index | (4.06 | )% | 18.77 | % | (0.49 | )% | 3.94 | % | 31.93 | % | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 4.25 | % | 34.71 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | (3.01 | )% | 17.59 | % | (1.16 | )% | 2.42 | % | 18.68 | % | |||||||||||||
Share Price Return | (3.18 | )% | 17.62 | % | (1.18 | )% | 2.39 | % | 18.40 | % |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.80%. The Financial Highlights section of this Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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 Dynamic Small Cap Value IntellidexSM Index, S&P SmallCap 600® 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 100, 453, 1,358 and 500 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from the closest month-end to the Fund's inception date.
†† Prior to June 16, 2011, the Fund sought to replicate, before fees and expenses, the performance of the Dynamic Small Cap Value IntellidexSM Index. Effective June 16, 2011 the Fund seeks to replicate, before fees and expenses, the performance of the RAFI® Fundamental Small Value Index. "1 Year," "3 Years," "5 Years" and "Fund Inception" performance for the RAFI® Fundamental Small Value Index was not available in the prior year because that Index did not commence calculation and publication until April 15, 2011.
††† Average Annualized.
25
Manager's Analysis
PowerShares Zacks Micro Cap Portfolio (ticker: PZI)
The PowerShares Zacks Micro Cap Portfolio (the "Fund") seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Zacks Micro Cap IndexTM (the "Index"). The Fund generally will normally invest at least 90% of its total assets in common stocks that comprise the Index. The Index is designed to identify a group of micro cap stocks with the greatest potential to outperform passive benchmark micro cap indexes and other actively managed U.S. micro cap strategies.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned (8.42)%. On a Net Asset Value ("NAV") basis, the Fund returned (8.34)%. During the same reporting period, the Index returned (9.06)%, while the Dow Jones Select Micro Cap Index returned (7.71)%, the S&P 500® Index returned 4.73% and the Russell Microcap® Index returned (4.91)%. The Fund benefited most from positive performance of securities of companies in the financials, consumer discretionary, and utilities sectors. The Fund was hurt most by exposure to the information technology, industrials, and energy sectors.
At the single stock level, the Fund benefited most from exposure to Inhibitex Inc. (portfolio average weight of 0.19%) and Flotek Industries Inc. (portfolio average weight of 0.16%). The leading detractors to the Fund were Cogo Group, Inc. (portfolio average weight of 0.13%), and ADVENTRX Pharmaceuticals, Inc. (portfolio average weight of 0.01%).
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Financials | 36.3 | ||||||
Industrials | 16.9 | ||||||
Consumer Discretionary | 13.5 | ||||||
Information Technology | 12.1 | ||||||
Health Care | 7.3 | ||||||
Materials | 4.6 | ||||||
Energy | 4.3 | ||||||
Consumer Staples | 2.7 | ||||||
Utilities | 1.3 | ||||||
Telecommunication Services | 1.0 | ||||||
Money Market Fund | 1.6 | ||||||
Liabilities in excess of other assets | (1.6 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Small-Cap Value | 58.0 | ||||||
Small-Cap Growth | 41.8 | ||||||
Unclassified | 0.2 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
Cray, Inc. | 0.4 | ||||||
Anika Therapeutics, Inc. | 0.4 | ||||||
Edelman Financial Group, Inc. | 0.3 | ||||||
Miller Energy Resources, Inc. | 0.3 | ||||||
Titan Machinery, Inc. | 0.3 | ||||||
Hardinge, Inc. | 0.3 | ||||||
Apogee Enterprises, Inc. | 0.3 | ||||||
Movado Group, Inc. | 0.3 | ||||||
Blyth, Inc. | 0.3 | ||||||
PHI, Inc. | 0.3 | ||||||
Total | 3.2 |
26
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, 2012 | ||||||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Zacks Micro Cap IndexTM | (9.06 | )% | 12.31 | % | (8.88 | )% | (3.66 | )% | (22.08 | )% | |||||||||||||
Russell Microcap® Index | (4.91 | )% | 19.87 | % | (1.73 | )% | 1.61 | % | 11.22 | % | |||||||||||||
Dow Jones Select Micro Cap Index | (7.71 | )% | 17.48 | % | (0.56 | )% | 2.68 | % | 19.26 | % | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 4.21 | % | 31.64 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | (8.34 | )% | 12.92 | % | (8.24 | )% | (3.14 | )% | (19.27 | )% | |||||||||||||
Share Price Return | (8.42 | )% | 12.86 | % | (8.21 | )% | (3.19 | )% | (19.51 | )% |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.94% including estimated acquired fund fees and expenses of 0.09%. The Financial Highlights section of this Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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 Microcap® Index, Dow Jones Select 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 1,000, 233 and 500 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from the closest month-end to the Fund's inception date.
†† Average Annualized.
27
Frequency Distribution of Discounts & Premiums
Since Inception through April 30, 2012
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 | 1,805 | 788 | 35 | 3 | 1 | 0 | 0 | ||||||||||||||||||||||||||||||
PWV | PowerShares Dynamic Large Cap Value Portfolio | 03/03/05 | 1,805 | 956 | 34 | 11 | 1 | 0 | 2 | ||||||||||||||||||||||||||||||
PXLC | PowerShares Fundamental Pure Large Core Portfolio | 12/01/06 | 1,342 | 503 | 16 | 4 | 2 | 1 | 0 | ||||||||||||||||||||||||||||||
PXLG | PowerShares Fundamental Pure Large Growth Portfolio | 06/16/11 | 221 | 120 | 1 | 0 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||
PXLV | PowerShares Fundamental Pure Large Value Portfolio | 06/16/11 | 221 | 104 | 5 | 0 | 0 | 0 | 1 | ||||||||||||||||||||||||||||||
PXMC | PowerShares Fundamental Pure Mid Core Portfolio | 12/01/06 | 1,342 | 519 | 28 | 1 | 1 | 1 | 1 | ||||||||||||||||||||||||||||||
PXMG | PowerShares Fundamental Pure Mid Growth Portfolio | 03/03/05 | 1,805 | 667 | 20 | 6 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||
PXMV | PowerShares Fundamental Pure Mid Value Portfolio | 03/03/05 | 1,805 | 657 | 24 | 5 | 1 | 0 | 2 | ||||||||||||||||||||||||||||||
PXSC | PowerShares Fundamental Pure Small Core Portfolio | 12/01/06 | 1,342 | 419 | 30 | 5 | 1 | 0 | 0 | ||||||||||||||||||||||||||||||
PXSG | PowerShares Fundamental Pure Small Growth Portfolio | 03/03/05 | 1,805 | 684 | 54 | 6 | 5 | 0 | 3 | ||||||||||||||||||||||||||||||
PXSV | PowerShares Fundamental Pure Small Value Portfolio | 03/03/05 | 1,805 | 663 | 50 | 10 | 1 | 2 | 0 | ||||||||||||||||||||||||||||||
PZI | PowerShares Zacks Micro Cap Portfolio | 08/18/05 | 1,688 | 555 | 57 | 15 | 0 | 1 | 1 |
28
Closing Price Below NAV (bps) | |||||||||||||||||||||||||||
Ticker | 0-24 | -25-49 | -50-99 | -100-149 | -150-199 | -200+ | |||||||||||||||||||||
PWB | 950 | 23 | 5 | 0 | 0 | 0 | |||||||||||||||||||||
PWV | 776 | 18 | 7 | 0 | 0 | 0 | |||||||||||||||||||||
PXLC | 803 | 10 | 3 | 0 | 0 | 0 | |||||||||||||||||||||
PXLG | 97 | 1 | 0 | 0 | 0 | 2 | |||||||||||||||||||||
PXLV | 107 | 2 | 1 | 0 | 1 | 0 | |||||||||||||||||||||
PXMC | 776 | 14 | 1 | 0 | 0 | 0 | |||||||||||||||||||||
PXMG | 1092 | 17 | 2 | 0 | 0 | 1 | |||||||||||||||||||||
PXMV | 1091 | 18 | 5 | 1 | 1 | 0 | |||||||||||||||||||||
PXSC | 850 | 31 | 4 | 2 | 0 | 0 | |||||||||||||||||||||
PXSG | 980 | 67 | 5 | 1 | 0 | 0 | |||||||||||||||||||||
PXSV | 999 | 70 | 8 | 1 | 1 | 0 | |||||||||||||||||||||
PZI | 956 | 95 | 7 | 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, 2012.
In pursuing its investment objectives, PowerShares Zacks Micro Cap Portfolio (the "Portfolio") may invest a portion of its assets in investment companies. The Portfolio indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Portfolio invests. The investment companies' expenses are not expenses that are incurred directly by the Portfolio. They are expenses that are incurred directly by the investment companies and are deducted from the value of the investment companies the Portfolio invests in. The effect of such expenses are included in the Portfolio's total returns.
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, 2011 | Ending Account Value April 30, 2012 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period (1) | ||||||||||||||||
PowerShares Dynamic Large Cap Growth Portfolio (PWB) Actual | $ | 1,000.00 | $ | 1,163.39 | 0.63 | % | $ | 3.39 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.73 | 0.63 | % | $ | 3.17 | |||||||||||
PowerShares Dynamic Large Cap Value Portfolio (PWV) Actual | $ | 1,000.00 | $ | 1,109.74 | 0.59 | % | $ | 3.09 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.93 | 0.59 | % | $ | 2.97 |
30
Fees and Expenses (Continued)
Beginning Account Value November 1, 2011 | Ending Account Value April 30, 2012 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period (1) | ||||||||||||||||
PowerShares Fundamental Pure Large Core Portfolio (PXLC) Actual | $ | 1,000.00 | $ | 1,119.96 | 0.39 | % | $ | 2.06 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.92 | 0.39 | % | $ | 1.96 | |||||||||||
PowerShares Fundamental Pure Large Growth Portfolio (PXLG) Actual | $ | 1,000.00 | $ | 1,122.83 | 0.39 | % | $ | 2.06 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.92 | 0.39 | % | $ | 1.96 | |||||||||||
PowerShares Fundamental Pure Large Value Portfolio (PXLV) Actual | $ | 1,000.00 | $ | 1,108.41 | 0.39 | % | $ | 2.04 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.92 | 0.39 | % | $ | 1.96 | |||||||||||
PowerShares Fundamental Pure Mid Core Portfolio (PXMC) Actual | $ | 1,000.00 | $ | 1,095.39 | 0.39 | % | $ | 2.03 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.92 | 0.39 | % | $ | 1.96 | |||||||||||
PowerShares Fundamental Pure Mid Growth Portfolio (PXMG) Actual | $ | 1,000.00 | $ | 1,091.91 | 0.39 | % | $ | 2.03 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.92 | 0.39 | % | $ | 1.96 | |||||||||||
PowerShares Fundamental Pure Mid Value Portfolio (PXMV) Actual | $ | 1,000.00 | $ | 1,119.68 | 0.39 | % | $ | 2.06 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.92 | 0.39 | % | $ | 1.96 | |||||||||||
PowerShares Fundamental Pure Small Core Portfolio (PXSC) Actual | $ | 1,000.00 | $ | 1,103.76 | 0.39 | % | $ | 2.04 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.92 | 0.39 | % | $ | 1.96 | |||||||||||
PowerShares Fundamental Pure Small Growth Portfolio (PXSG) Actual | $ | 1,000.00 | $ | 1,088.77 | 0.39 | % | $ | 2.03 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.92 | 0.39 | % | $ | 1.96 | |||||||||||
PowerShares Fundamental Pure Small Value Portfolio (PXSV) Actual | $ | 1,000.00 | $ | 1,136.10 | 0.39 | % | $ | 2.07 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.92 | 0.39 | % | $ | 1.96 | |||||||||||
PowerShares Zacks Micro Cap Portfolio (PZI) Actual | $ | 1,000.00 | $ | 1,120.00 | 0.70 | % | $ | 3.69 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.38 | 0.70 | % | $ | 3.52 |
(1) Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six-month period ended April 30, 2012. Expenses are calculated by multiplying the Fund's annualized expense ratio by the average account value for the period, then multiplying the result by 182/366. Expense ratios for the most recent six-month period may differ from expense ratios based on annualized data in the Financial Highlights.
31
Schedule of Investments
PowerShares Dynamic Large Cap Growth Portfolio (PWB)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.0% | |||||||||||
Consumer Discretionary—35.9% | |||||||||||
7,187 | AutoZone, Inc.(a) | $ | 2,847,202 | ||||||||
42,843 | Bed Bath & Beyond, Inc.(a) | 3,015,719 | |||||||||
34,346 | Coach, Inc. | 2,512,753 | |||||||||
206,684 | Comcast Corp., Class A | 6,268,726 | |||||||||
56,690 | DIRECTV, Class A(a) | 2,793,116 | |||||||||
62,050 | Dollar General Corp.(a) | 2,944,893 | |||||||||
128,418 | Home Depot, Inc. (The) | 6,650,768 | |||||||||
55,893 | Limited Brands, Inc. | 2,777,882 | |||||||||
95,200 | Lowe's Cos., Inc. | 2,995,944 | |||||||||
60,139 | McDonald's Corp. | 5,860,546 | |||||||||
308,442 | News Corp., Class A | 6,045,463 | |||||||||
56,761 | NIKE, Inc., Class B | 6,349,853 | |||||||||
4,380 | Priceline.com, Inc.(a) | 3,332,392 | |||||||||
14,919 | Ralph Lauren Corp. | 2,570,096 | |||||||||
53,533 | Starbucks Corp. | 3,071,724 | |||||||||
71,882 | TJX Cos., Inc. (The) | 2,998,198 | |||||||||
17,659 | VF Corp. | 2,685,051 | |||||||||
39,451 | Yum! Brands, Inc. | 2,869,271 | |||||||||
68,589,597 | |||||||||||
Consumer Staples—12.2% | |||||||||||
27,713 | Colgate-Palmolive Co. | 2,741,924 | |||||||||
30,635 | Costco Wholesale Corp. | 2,701,088 | |||||||||
45,489 | Estee Lauder Cos., Inc. (The), Class A | 2,972,706 | |||||||||
42,311 | Hershey Co. (The) | 2,835,260 | |||||||||
33,141 | Mead Johnson Nutrition Co. | 2,835,544 | |||||||||
72,670 | Philip Morris International, Inc. | 6,504,692 | |||||||||
31,883 | Whole Foods Market, Inc. | 2,648,521 | |||||||||
23,239,735 | |||||||||||
Energy—1.5% | |||||||||||
95,200 | El Paso Corp. | 2,824,584 | |||||||||
Financials—2.9% | |||||||||||
40,299 | American Tower Corp. REIT | 2,642,809 | |||||||||
85,646 | Discover Financial Services | 2,903,399 | |||||||||
5,546,208 | |||||||||||
Health Care—5.8% | |||||||||||
30,552 | Alexion Pharmaceuticals, Inc.(a) | 2,759,457 | |||||||||
34,525 | Celgene Corp.(a) | 2,517,563 | |||||||||
5,043 | Intuitive Surgical, Inc.(a) | 2,915,862 | |||||||||
31,532 | McKesson Corp. | 2,882,340 | |||||||||
11,075,222 | |||||||||||
Industrials—11.6% | |||||||||||
21,232 | Cummins, Inc. | 2,459,303 | |||||||||
49,752 | Fastenal Co. | 2,329,389 | |||||||||
20,540 | Goodrich Corp. | 2,576,948 | |||||||||
53,571 | Union Pacific Corp. | 6,023,523 | |||||||||
78,865 | United Parcel Service, Inc., Class B | 6,162,511 | |||||||||
12,473 | W.W. Grainger, Inc. | 2,592,139 | |||||||||
22,143,813 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
Information Technology—30.1% | |||||||||||
43,347 | Accenture PLC, Class A (Ireland) | $ | 2,815,388 | ||||||||
213,423 | Activision Blizzard, Inc. | 2,746,754 | |||||||||
11,548 | Apple, Inc.(a) | 6,746,804 | |||||||||
219,226 | EMC Corp.(a) | 6,184,365 | |||||||||
9,892 | Google, Inc., Class A(a) | 5,986,935 | |||||||||
44,533 | Intuit, Inc. | 2,581,578 | |||||||||
14,517 | MasterCard, Inc., Class A | 6,565,604 | |||||||||
52,308 | Motorola Solutions, Inc. | 2,669,277 | |||||||||
206,260 | Oracle Corp. | 6,061,981 | |||||||||
95,100 | QUALCOMM, Inc. | 6,071,184 | |||||||||
18,000 | Salesforce.com, Inc.(a) | 2,803,140 | |||||||||
51,329 | Visa, Inc., Class A | 6,312,440 | |||||||||
57,545,450 | |||||||||||
Total Common Stocks and Other Equity Interests (Cost $152,863,536) | 190,964,609 | ||||||||||
Money Market Fund—0.1% | |||||||||||
170,913 | Goldman Sachs Financial Square Prime Obligations - Institutional Share Class (Cost $170,913) | 170,913 | |||||||||
Total Investments (Cost $153,034,449)—100.1% | 191,135,522 | ||||||||||
Liabilities in excess of other assets—(0.1%) | (122,339 | ) | |||||||||
Net Assets—100.0% | $ | 191,013,183 |
Investment Abbreviations:
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
(a) Non-income producing security.
See Notes to Financial Statements.
32
Schedule of Investments
PowerShares Dynamic Large Cap Value Portfolio (PWV)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks—100.0% | |||||||||||
Consumer Discretionary—5.6% | |||||||||||
224,906 | General Motors Co.(a) | $ | 5,172,838 | ||||||||
127,377 | McGraw-Hill Cos., Inc. (The) | 6,263,127 | |||||||||
106,183 | Target Corp. | 6,152,243 | |||||||||
155,567 | Time Warner, Inc. | 5,827,540 | |||||||||
23,415,748 | |||||||||||
Consumer Staples—14.2% | |||||||||||
456,190 | Altria Group, Inc. | 14,693,880 | |||||||||
81,651 | Kimberly-Clark Corp. | 6,407,154 | |||||||||
249,082 | Kroger Co. (The) | 5,796,138 | |||||||||
205,083 | Procter & Gamble Co. (The) | 13,051,482 | |||||||||
142,036 | Reynolds American, Inc. | 5,799,330 | |||||||||
232,710 | Wal-Mart Stores, Inc. | 13,708,946 | |||||||||
59,456,930 | |||||||||||
Energy—12.3% | |||||||||||
125,421 | Chevron Corp. | 13,364,862 | |||||||||
236,271 | ConocoPhillips(a)(b) | 12,983,091 | |||||||||
156,641 | Exxon Mobil Corp. | 13,524,384 | |||||||||
136,801 | Marathon Petroleum Corp. | 5,692,290 | |||||||||
1 | Phillips 66(a) | 17 | |||||||||
240,399 | Valero Energy Corp. | 5,937,855 | |||||||||
51,502,499 | |||||||||||
Financials—12.1% | |||||||||||
80,179 | ACE Ltd. | 6,091,199 | |||||||||
125,016 | Aflac, Inc. | 5,630,721 | |||||||||
85,474 | Chubb Corp. (The) | 6,245,585 | |||||||||
357,396 | JPMorgan Chase & Co. | 15,360,880 | |||||||||
149,802 | Loews Corp. | 6,161,356 | |||||||||
155,280 | MetLife, Inc. | 5,594,739 | |||||||||
95,980 | Prudential Financial, Inc. | 5,810,629 | |||||||||
50,895,109 | |||||||||||
Health Care—20.8% | |||||||||||
241,289 | Abbott Laboratories | 14,974,395 | |||||||||
125,044 | Aetna, Inc. | 5,506,938 | |||||||||
86,569 | Amgen, Inc. | 6,155,922 | |||||||||
130,036 | CIGNA Corp. | 6,011,564 | |||||||||
150,149 | Eli Lilly & Co. | 6,214,667 | |||||||||
212,245 | Johnson & Johnson | 13,815,027 | |||||||||
358,141 | Merck & Co., Inc. | 14,053,453 | |||||||||
645,947 | Pfizer, Inc. | 14,811,565 | |||||||||
88,693 | WellPoint, Inc. | 6,015,159 | |||||||||
87,558,690 | |||||||||||
Industrials—4.4% | |||||||||||
65,492 | Lockheed Martin Corp. | 5,929,646 | |||||||||
97,851 | Northrop Grumman Corp. | 6,192,011 | |||||||||
114,631 | Tyco International Ltd. (Switzerland) | 6,434,238 | |||||||||
18,555,895 | |||||||||||
Information Technology—9.2% | |||||||||||
679,304 | Cisco Systems, Inc. | 13,687,976 | |||||||||
336,395 | Dell, Inc.(a) | 5,506,786 |
Number of Shares | Value | ||||||||||
Common Stocks (Continued) | |||||||||||
434,596 | Microsoft Corp. | $ | 13,915,764 | ||||||||
327,930 | Symantec Corp.(a) | 5,417,403 | |||||||||
38,527,929 | |||||||||||
Telecommunication Services—7.0% | |||||||||||
450,927 | AT&T, Inc. | 14,840,007 | |||||||||
358,707 | Verizon Communications, Inc. | 14,484,589 | |||||||||
29,324,596 | |||||||||||
Utilities—14.4% | |||||||||||
155,400 | American Electric Power Co., Inc. | 6,035,736 | |||||||||
99,649 | Consolidated Edison, Inc. | 5,924,133 | |||||||||
114,251 | Dominion Resources, Inc. | 5,962,760 | |||||||||
277,884 | Duke Energy Corp. | 5,955,054 | |||||||||
138,842 | Edison International | 6,110,436 | |||||||||
149,307 | Exelon Corp. | 5,824,466 | |||||||||
133,044 | FirstEnergy Corp. | 6,229,120 | |||||||||
109,207 | Progress Energy, Inc. | 5,811,996 | |||||||||
192,684 | Public Service Enterprise Group, Inc. | 6,002,107 | |||||||||
101,021 | Sempra Energy | 6,540,100 | |||||||||
60,395,908 | |||||||||||
Total Investments (Cost $380,228,835)—100.0% | 419,633,304 | ||||||||||
Other assets less liabilities—0.0% | 107,090 | ||||||||||
Net Assets—100.0% | $ | 419,740,394 |
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) When-issued security.
See Notes to Financial Statements.
33
Schedule of Investments
PowerShares Fundamental Pure Large Core Portfolio (PXLC)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks—100.0% | |||||||||||
Consumer Discretionary—8.0% | |||||||||||
19,489 | Comcast Corp., Class A | $ | 591,101 | ||||||||
6,719 | Johnson Controls, Inc. | 214,806 | |||||||||
2,292 | Liberty Global, Inc., Class A(a) | 114,165 | |||||||||
13,895 | News Corp., Class A | 272,342 | |||||||||
2,587 | Time Warner Cable, Inc. | 208,124 | |||||||||
3,233 | Viacom, Inc., Class B | 149,979 | |||||||||
10,834 | Walt Disney Co. (The) | 467,054 | |||||||||
2,017,571 | |||||||||||
Consumer Staples—13.6% | |||||||||||
9,661 | Archer-Daniels-Midland Co. | 297,849 | |||||||||
2,217 | Bunge Ltd. | 142,997 | |||||||||
3,646 | Costco Wholesale Corp. | 321,468 | |||||||||
4,970 | General Mills, Inc. | 193,283 | |||||||||
2,595 | H.J. Heinz Co. | 138,339 | |||||||||
15,933 | Kraft Foods, Inc., Class A | 635,249 | |||||||||
1,042 | Lorillard, Inc. | 140,972 | |||||||||
10,768 | Walgreen Co. | 377,526 | |||||||||
20,203 | Wal-Mart Stores, Inc. | 1,190,159 | |||||||||
3,437,842 | |||||||||||
Energy—3.3% | |||||||||||
7,094 | Chesapeake Energy Corp. | 130,813 | |||||||||
5,766 | Halliburton Co. | 197,313 | |||||||||
4,126 | Hess Corp. | 215,130 | |||||||||
2,425 | Murphy Oil Corp. | 133,302 | |||||||||
4,865 | Williams Cos., Inc. (The) | 165,556 | |||||||||
842,114 | |||||||||||
Financials—14.7% | |||||||||||
4,358 | Aflac, Inc. | 196,284 | |||||||||
8,019 | American Express Co. | 482,824 | |||||||||
15,388 | Bank of New York Mellon Corp. (The) | 363,926 | |||||||||
6,417 | Capital One Financial Corp. | 356,015 | |||||||||
8,240 | Charles Schwab Corp. (The) | 117,832 | |||||||||
5,732 | PNC Financial Services Group, Inc. | 380,146 | |||||||||
4,595 | State Street Corp. | 212,381 | |||||||||
48,736 | Wells Fargo & Co. | 1,629,245 | |||||||||
3,738,653 | |||||||||||
Health Care—14.3% | |||||||||||
5,642 | AmerisourceBergen Corp. | 209,939 | |||||||||
5,173 | Amgen, Inc. | 367,852 | |||||||||
15,195 | Bristol-Myers Squibb Co. | 507,057 | |||||||||
12,241 | Eli Lilly & Co. | 506,655 | |||||||||
21,258 | Johnson & Johnson | 1,383,683 | |||||||||
3,775 | McKesson Corp. | 345,073 | |||||||||
7,860 | Medtronic, Inc. | 300,252 | |||||||||
3,620,511 | |||||||||||
Industrials—14.7% | |||||||||||
4,938 | 3M Co. | 441,260 | |||||||||
5,302 | Boeing Co. (The) | 407,194 | |||||||||
3,531 | Caterpillar, Inc. | 362,881 |
Number of Shares | Value | ||||||||||
Common Stocks (Continued) | |||||||||||
7,666 | CSX Corp. | $ | 171,028 | ||||||||
2,548 | Deere & Co. | 209,853 | |||||||||
16,230 | Delta Air Lines, Inc.(a) | 177,881 | |||||||||
2,720 | Eaton Corp. | 131,049 | |||||||||
5,803 | Emerson Electric Co. | 304,890 | |||||||||
3,660 | General Dynamics Corp. | 247,050 | |||||||||
5,368 | Honeywell International, Inc. | 325,623 | |||||||||
3,527 | Illinois Tool Works, Inc. | 202,379 | |||||||||
2,818 | Norfolk Southern Corp. | 205,517 | |||||||||
6,594 | United Technologies Corp. | 538,334 | |||||||||
3,724,939 | |||||||||||
Information Technology—16.8% | |||||||||||
10,325 | Applied Materials, Inc. | 123,797 | |||||||||
2,795 | Automatic Data Processing, Inc. | 155,458 | |||||||||
17,743 | Dell, Inc.(a) | 290,453 | |||||||||
33,863 | Intel Corp. | 961,709 | |||||||||
5,234 | International Business Machines Corp. | 1,083,857 | |||||||||
35,866 | Microsoft Corp. | 1,148,429 | |||||||||
6,652 | Texas Instruments, Inc. | 212,465 | |||||||||
18,412 | Xerox Corp. | 143,245 | |||||||||
8,396 | Yahoo!, Inc.(a) | 130,474 | |||||||||
4,249,887 | |||||||||||
Materials—2.6% | |||||||||||
1,469 | Air Products & Chemicals, Inc. | 125,585 | |||||||||
7,202 | E.I. du Pont de Nemours & Co. | 385,019 | |||||||||
1,339 | PPG Industries, Inc. | 140,916 | |||||||||
651,520 | |||||||||||
Telecommunication Services—8.1% | |||||||||||
62,453 | AT&T, Inc. | 2,055,328 | |||||||||
Utilities—3.9% | |||||||||||
11,995 | AES Corp. (The)(a) | 150,177 | |||||||||
4,598 | NextEra Energy, Inc. | 295,881 | |||||||||
5,670 | PPL Corp. | 155,075 | |||||||||
8,283 | Southern Co. (The) | 380,521 | |||||||||
981,654 | |||||||||||
Total Common Stocks (Cost $23,699,565) | 25,320,019 | ||||||||||
Money Market Fund—0.2% | |||||||||||
54,219 | Goldman Sachs Financial Square Prime Obligations - Institutional Share Class (Cost $54,219) | 54,219 | |||||||||
Total Investments (Cost $23,753,784)—100.2% | 25,374,238 | ||||||||||
Liabilities in excess of other assets—(0.2%) | (48,211 | ) | |||||||||
Net Assets—100.0% | $ | 25,326,027 |
Notes to Schedule of Investments:
(a) Non-income producing security.
See Notes to Financial Statements.
34
Schedule of Investments
PowerShares Fundamental Pure Large Growth Portfolio (PXLG)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—99.9% | |||||||||||
Consumer Discretionary—8.8% | |||||||||||
178 | Amazon.com, Inc.(a) | $ | 41,278 | ||||||||
1,053 | DIRECTV, Class A(a) | 51,881 | |||||||||
3,095 | General Motors Co.(a) | 71,185 | |||||||||
1,425 | McDonald's Corp. | 138,866 | |||||||||
423 | NIKE, Inc., Class B | 47,321 | |||||||||
936 | TJX Cos., Inc. (The) | 39,041 | |||||||||
389,572 | |||||||||||
Consumer Staples—24.5% | |||||||||||
3,141 | Coca-Cola Co. (The) | 239,721 | |||||||||
624 | Colgate-Palmolive Co. | 61,739 | |||||||||
3,425 | CVS Caremark Corp. | 152,823 | |||||||||
2,933 | PepsiCo, Inc. | 193,578 | |||||||||
1,858 | Philip Morris International, Inc. | 166,310 | |||||||||
4,308 | Procter & Gamble Co. (The) | 274,161 | |||||||||
1,088,332 | |||||||||||
Energy—10.9% | |||||||||||
814 | Anadarko Petroleum Corp. | 59,593 | |||||||||
646 | Apache Corp. | 61,977 | |||||||||
941 | Baker Hughes, Inc. | 41,508 | |||||||||
287 | EOG Resources, Inc. | 31,515 | |||||||||
567 | National Oilwell Varco, Inc. | 42,956 | |||||||||
1,327 | Occidental Petroleum Corp. | 121,049 | |||||||||
1,678 | Schlumberger Ltd. | 124,407 | |||||||||
483,005 | |||||||||||
Financials—7.8% | |||||||||||
2,744 | Annaly Capital Management, Inc. REIT | 44,782 | |||||||||
2,729 | Berkshire Hathaway, Inc., Class B(a) | 219,548 | |||||||||
149 | CME Group, Inc. | 39,607 | |||||||||
275 | Simon Property Group, Inc. REIT | 42,790 | |||||||||
346,727 | |||||||||||
Health Care—19.3% | |||||||||||
2,785 | Abbott Laboratories | 172,837 | |||||||||
874 | Baxter International, Inc. | 48,428 | |||||||||
1,738 | Express Scripts Holding Co.(a) | 96,963 | |||||||||
720 | Gilead Sciences, Inc.(a) | 37,447 | |||||||||
586 | Humana, Inc. | 47,279 | |||||||||
6,826 | Merck & Co., Inc. | 267,852 | |||||||||
844 | Thermo Fisher Scientific, Inc. | 46,969 | |||||||||
2,501 | UnitedHealth Group, Inc. | 140,431 | |||||||||
858,206 | |||||||||||
Industrials—2.7% | |||||||||||
702 | Union Pacific Corp. | 78,933 | |||||||||
1,820 | United Continental Holdings, Inc.(a) | 39,894 | |||||||||
118,827 | |||||||||||
Information Technology—20.4% | |||||||||||
339 | Apple, Inc.(a) | 198,057 | |||||||||
9,109 | Cisco Systems, Inc. | 183,546 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
3,607 | Corning, Inc. | $ | 51,761 | ||||||||
1,257 | eBay, Inc.(a) | 51,600 | |||||||||
2,214 | EMC Corp.(a) | 62,457 | |||||||||
200 | Google, Inc., Class A(a) | 121,046 | |||||||||
3,656 | Oracle Corp. | 107,450 | |||||||||
1,350 | QUALCOMM, Inc. | 86,184 | |||||||||
379 | Visa, Inc., Class A | 46,609 | |||||||||
908,710 | |||||||||||
Materials—4.7% | |||||||||||
2,067 | Freeport-McMoRan Copper & Gold, Inc. | 79,166 | |||||||||
615 | Monsanto Co. | 46,851 | |||||||||
748 | Newmont Mining Corp. | 35,642 | |||||||||
395 | Praxair, Inc. | 45,702 | |||||||||
207,361 | |||||||||||
Telecommunication Services—0.8% | |||||||||||
946 | CenturyLink, Inc. | 36,478 | |||||||||
Total Common Stocks and Other Equity Interests (Cost $4,249,925) | 4,437,218 | ||||||||||
Money Market Fund—1.9% | |||||||||||
84,884 | Goldman Sachs Financial Square Prime Obligations - Institutional Share Class (Cost $84,884) | 84,884 | |||||||||
Total Investments (Cost $4,334,809)—101.8% | 4,522,102 | ||||||||||
Liabilities in excess of other assets—(1.8%) | (82,086 | ) | |||||||||
Net Assets—100.0% | $ | 4,440,016 |
Investment Abbreviations:
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
(a) Non-income producing security.
See Notes to Financial Statements.
35
Schedule of Investments
PowerShares Fundamental Pure Large Value Portfolio (PXLV)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.0% | |||||||||||
Consumer Discretionary—7.3% | |||||||||||
1,387 | Best Buy Co., Inc. | $ | 30,611 | ||||||||
1,027 | CBS Corp., Class B | 34,251 | |||||||||
7,798 | Ford Motor Co. | 87,962 | |||||||||
2,390 | Home Depot, Inc. (The) | 123,778 | |||||||||
2,360 | Lowe's Cos., Inc. | 74,269 | |||||||||
812 | Macy's, Inc. | 33,308 | |||||||||
1,858 | Staples, Inc. | 28,613 | |||||||||
1,397 | Target Corp. | 80,942 | |||||||||
2,755 | Time Warner, Inc. | 103,202 | |||||||||
596,936 | |||||||||||
Consumer Staples—5.5% | |||||||||||
4,930 | Altria Group, Inc. | 158,795 | |||||||||
1,296 | Coca-Cola Enterprises, Inc. | 39,035 | |||||||||
882 | ConAgra Foods, Inc. | 22,773 | |||||||||
406 | Kellogg Co. | 20,531 | |||||||||
672 | Kimberly-Clark Corp. | 52,732 | |||||||||
2,340 | Kroger Co. (The) | 54,452 | |||||||||
555 | Reynolds American, Inc. | 22,661 | |||||||||
1,738 | Safeway, Inc. | 35,334 | |||||||||
1,364 | Sysco Corp. | 39,420 | |||||||||
445,733 | |||||||||||
Energy—20.4% | |||||||||||
3,871 | Chevron Corp. | 412,494 | |||||||||
3,728 | ConocoPhillips | 267,037 | |||||||||
580 | Devon Energy Corp. | 40,513 | |||||||||
8,200 | Exxon Mobil Corp. | 707,988 | |||||||||
2,755 | Marathon Oil Corp. | 80,832 | |||||||||
1,266 | Marathon Petroleum Corp. | 52,678 | |||||||||
944 | Spectra Energy Corp. | 29,018 | |||||||||
2,954 | Valero Energy Corp. | 72,964 | |||||||||
1,663,524 | |||||||||||
Financials—30.8% | |||||||||||
1,830 | Allstate Corp. (The) | 60,994 | |||||||||
1,105 | American International Group, Inc.(a) | 37,603 | |||||||||
66,288 | Bank of America Corp. | 537,596 | |||||||||
1,685 | BB&T Corp. | 53,987 | |||||||||
626 | Chubb Corp. (The) | 45,742 | |||||||||
11,371 | Citigroup, Inc. | 375,698 | |||||||||
2,393 | Fifth Third Bancorp | 34,052 | |||||||||
1,197 | Goldman Sachs Group, Inc. (The) | 137,835 | |||||||||
2,594 | Hartford Financial Services Group, Inc. (The) | 53,307 | |||||||||
9,966 | JPMorgan Chase & Co. | 428,339 | |||||||||
3,105 | KeyCorp | 24,964 | |||||||||
1,064 | Lincoln National Corp. | 26,355 | |||||||||
811 | Loews Corp. | 33,356 | |||||||||
755 | Marsh & McLennan Cos., Inc. | 25,255 | |||||||||
1,978 | MetLife, Inc. | 71,267 | |||||||||
5,453 | Morgan Stanley | 94,228 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
816 | Principal Financial Group, Inc. | $ | 22,579 | ||||||||
1,270 | Progressive Corp. (The) | 27,051 | |||||||||
1,067 | Prudential Financial, Inc. | 64,596 | |||||||||
6,390 | Regions Financial Corp. | 43,069 | |||||||||
2,129 | SunTrust Banks, Inc. | 51,692 | |||||||||
1,445 | Travelers Cos., Inc. (The) | 92,942 | |||||||||
3,496 | U.S. Bancorp | 112,466 | |||||||||
2,804 | Weyerhaeuser Co. REIT | 57,090 | |||||||||
2,512,063 | |||||||||||
Health Care—7.8% | |||||||||||
748 | Aetna, Inc. | 32,942 | |||||||||
4,562 | Boston Scientific Corp.(a) | 28,558 | |||||||||
1,479 | Cardinal Health, Inc. | 62,517 | |||||||||
489 | CIGNA Corp. | 22,607 | |||||||||
1,038 | HCA Holdings, Inc. | 27,943 | |||||||||
15,620 | Pfizer, Inc. | 358,167 | |||||||||
1,483 | WellPoint, Inc. | 100,577 | |||||||||
633,311 | |||||||||||
Industrials—10.6% | |||||||||||
507 | FedEx Corp. | 44,738 | |||||||||
25,961 | General Electric Co. | 508,316 | |||||||||
315 | L-3 Communications Holdings, Inc. | 23,165 | |||||||||
675 | Lockheed Martin Corp. | 61,114 | |||||||||
852 | Northrop Grumman Corp. | 53,915 | |||||||||
564 | PACCAR, Inc. | 24,229 | |||||||||
776 | Raytheon Co. | 42,013 | |||||||||
897 | United Parcel Service, Inc., Class B | 70,092 | |||||||||
936 | Waste Management, Inc. | 32,011 | |||||||||
859,593 | |||||||||||
Information Technology—2.3% | |||||||||||
6,231 | Hewlett-Packard Co. | 154,279 | |||||||||
661 | Motorola Solutions, Inc. | 33,731 | |||||||||
188,010 | |||||||||||
Materials—2.4% | |||||||||||
4,587 | Alcoa, Inc. | 44,632 | |||||||||
2,571 | Dow Chemical Co. (The) | 87,106 | |||||||||
1,011 | International Paper Co. | 33,676 | |||||||||
830 | Nucor Corp. | 32,544 | |||||||||
197,958 | |||||||||||
Telecommunication Services—4.7% | |||||||||||
23,202 | Sprint Nextel Corp.(a) | 57,541 | |||||||||
8,009 | Verizon Communications, Inc. | 323,403 | |||||||||
380,944 | |||||||||||
Utilities—8.2% | |||||||||||
873 | Ameren Corp. | 28,626 | |||||||||
1,254 | American Electric Power Co., Inc. | 48,705 | |||||||||
670 | Consolidated Edison, Inc. | 39,832 | |||||||||
1,103 | Dominion Resources, Inc. | 57,566 |
See Notes to Financial Statements.
36
Schedule of Investments (Continued)
PowerShares Fundamental Pure Large Value Portfolio (PXLV)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
458 | DTE Energy Co. | $ | 25,822 | ||||||||
3,250 | Duke Energy Corp. | 69,648 | |||||||||
845 | Edison International | 37,188 | |||||||||
545 | Entergy Corp. | 35,730 | |||||||||
2,533 | Exelon Corp. | 98,812 | |||||||||
952 | FirstEnergy Corp. | 44,573 | |||||||||
1,016 | PG&E Corp. | 44,887 | |||||||||
701 | Progress Energy, Inc. | 37,307 | |||||||||
1,347 | Public Service Enterprise Group, Inc. | 41,959 | |||||||||
452 | Sempra Energy | 29,262 | |||||||||
1,104 | Xcel Energy, Inc. | 29,874 | |||||||||
669,791 | |||||||||||
Total Common Stocks and Other Equity Interests (Cost $7,642,284) | 8,147,863 | ||||||||||
Money Market Fund—1.0% | |||||||||||
82,849 | Goldman Sachs Financial Square Prime Obligations - Institutional Share Class (Cost $82,849) | 82,849 | |||||||||
Total Investments (Cost $7,725,133)—101.0% | 8,230,712 | ||||||||||
Liabilities in excess of other assets—(1.0%) | (82,297 | ) | |||||||||
Net Assets—100.0% | $ | 8,148,415 |
Investment Abbreviations:
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
(a) Non-income producing security.
See Notes to Financial Statements.
37
Schedule of Investments
PowerShares Fundamental Pure Mid Core Portfolio (PXMC)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—99.9% | |||||||||||
Consumer Discretionary—16.0% | |||||||||||
989 | Advance Auto Parts, Inc. | $ | 90,790 | ||||||||
339 | AutoZone, Inc.(a) | 134,298 | |||||||||
1,829 | Big Lots, Inc.(a) | 67,015 | |||||||||
1,234 | BorgWarner, Inc.(a) | 97,535 | |||||||||
9,216 | Cablevision Systems Corp., Class A | 136,581 | |||||||||
6,917 | Dana Holding Corp. | 101,127 | |||||||||
3,009 | Darden Restaurants, Inc. | 150,691 | |||||||||
4,125 | DISH Network Corp., Class A | 131,876 | |||||||||
1,997 | Expedia, Inc. | 85,132 | |||||||||
1,760 | Family Dollar Stores, Inc. | 118,888 | |||||||||
7,019 | GameStop Corp., Class A | 159,752 | |||||||||
11,794 | Interpublic Group of Cos., Inc. (The) | 139,287 | |||||||||
1,745 | Jarden Corp. | 73,168 | |||||||||
5,547 | Kohl's Corp. | 278,071 | |||||||||
6,254 | Mattel, Inc. | 210,134 | |||||||||
2,772 | Nordstrom, Inc. | 154,844 | |||||||||
1,769 | Penn National Gaming, Inc.(a) | 79,570 | |||||||||
1,499 | PetSmart, Inc. | 87,332 | |||||||||
2,090 | Tenneco, Inc.(a) | 64,435 | |||||||||
1,421 | Tiffany & Co. | 97,282 | |||||||||
1,591 | VF Corp. | 241,912 | |||||||||
7,848 | Virgin Media, Inc. | 192,747 | |||||||||
1,585 | Visteon Corp.(a) | 79,519 | |||||||||
2,971,986 | |||||||||||
Consumer Staples—5.4% | |||||||||||
926 | Brown-Forman Corp., Class B | 79,960 | |||||||||
2,419 | Clorox Co. (The) | 169,572 | |||||||||
1,476 | Corn Products International, Inc. | 84,220 | |||||||||
3,753 | Dr Pepper Snapple Group, Inc. | 152,297 | |||||||||
1,511 | Energizer Holdings, Inc. | 107,780 | |||||||||
1,588 | Estee Lauder Cos., Inc. (The), Class A | 103,776 | |||||||||
2,016 | Hershey Co. (The) | 135,092 | |||||||||
2,483 | Hormel Foods Corp. | 72,156 | |||||||||
1,951 | McCormick & Co., Inc. | 109,080 | |||||||||
1,013,933 | |||||||||||
Energy—8.4% | |||||||||||
7,481 | Arch Coal, Inc. | 73,015 | |||||||||
998 | Cimarex Energy Co. | 68,972 | |||||||||
2,772 | Diamond Offshore Drilling, Inc. | 190,021 | |||||||||
7,440 | El Paso Corp. | 220,745 | |||||||||
1,524 | Energen Corp. | 79,827 | |||||||||
2,099 | EQT Corp. | 104,572 | |||||||||
4,959 | Kinder Morgan, Inc. | 178,028 | |||||||||
7,131 | McDermott International, Inc.(a) | 80,580 | |||||||||
3,859 | Newfield Exploration Co.(a) | 138,538 | |||||||||
5,919 | Peabody Energy Corp. | 184,140 | |||||||||
3,103 | QEP Resources, Inc. | 95,603 | |||||||||
2,797 | Rowan Cos., Inc.(a) | 96,580 | |||||||||
2,228 | Superior Energy Services, Inc.(a) | 59,978 | |||||||||
1,570,599 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
Financials—25.5% | |||||||||||
7,647 | American Capital Ltd.(a) | $ | 75,935 | ||||||||
5,341 | Ameriprise Financial, Inc. | 289,536 | |||||||||
5,521 | Aon PLC (United Kingdom) | 285,988 | |||||||||
2,256 | Arthur J. Gallagher & Co. | 84,735 | |||||||||
1,049 | AvalonBay Communities, Inc. REIT | 152,525 | |||||||||
2,320 | Boston Properties, Inc. REIT | 251,140 | |||||||||
1,282 | Camden Property Trust REIT | 86,753 | |||||||||
5,142 | CBRE Group, Inc., Class A(a) | 96,721 | |||||||||
4,814 | CIT Group, Inc.(a) | 182,210 | |||||||||
1,352 | Cullen/Frost Bankers, Inc. | 79,714 | |||||||||
9,305 | Discover Financial Services | 315,439 | |||||||||
4,385 | Equity Residential REIT | 269,414 | |||||||||
7,779 | First Niagara Financial Group, Inc. | 69,544 | |||||||||
1,852 | Franklin Resources, Inc. | 232,445 | |||||||||
9,406 | General Growth Properties, Inc. REIT | 167,427 | |||||||||
14,830 | Host Hotels & Resorts, Inc. REIT | 246,771 | |||||||||
8,458 | Kimco Realty Corp. REIT | 164,170 | |||||||||
2,249 | Macerich Co. (The) REIT | 138,471 | |||||||||
111 | Markel Corp.(a) | 48,871 | |||||||||
2,301 | Moody's Corp. | 94,226 | |||||||||
3,951 | NASDAQ OMX Group, Inc. (The) | 97,076 | |||||||||
16,192 | New York Community Bancorp, Inc. | 218,430 | |||||||||
8,094 | NYSE Euronext | 208,420 | |||||||||
11,134 | People's United Financial, Inc. | 137,394 | |||||||||
2,020 | Raymond James Financial, Inc. | 73,972 | |||||||||
2,045 | Rayonier, Inc. REIT | 92,741 | |||||||||
1,546 | Reinsurance Group of America, Inc. | 89,884 | |||||||||
6,223 | TD Ameritrade Holding Corp. | 116,930 | |||||||||
3,384 | UDR, Inc. REIT | 89,101 | |||||||||
3,373 | Vornado Realty Trust REIT | 289,538 | |||||||||
4,745,521 | |||||||||||
Health Care—6.2% | |||||||||||
3,855 | Becton, Dickinson and Co. | 302,425 | |||||||||
885 | C.R. Bard, Inc. | 87,580 | |||||||||
1,740 | DENTSPLY International, Inc. | 71,444 | |||||||||
5,841 | Forest Laboratories, Inc.(a) | 203,442 | |||||||||
3,733 | Hospira, Inc.(a) | 131,103 | |||||||||
1,678 | Laboratory Corp. of America Holdings(a) | 147,479 | |||||||||
1,975 | Owens & Minor, Inc. | 57,749 | |||||||||
1,981 | Universal Health Services, Inc., Class B | 84,609 | |||||||||
1,167 | WellCare Health Plans, Inc.(a) | 71,397 | |||||||||
1,157,228 | |||||||||||
Industrials—16.8% | |||||||||||
2,951 | AECOM Technology Corp.(a) | 65,129 | |||||||||
2,913 | AGCO Corp.(a) | 135,658 | |||||||||
2,288 | Alaska Air Group, Inc.(a) | 77,334 | |||||||||
2,881 | Cooper Industries PLC (Ireland) | 180,264 | |||||||||
3,422 | Dover Corp. | 214,423 | |||||||||
1,683 | EMCOR Group, Inc. | 49,346 |
See Notes to Financial Statements.
38
Schedule of Investments (Continued)
PowerShares Fundamental Pure Mid Core Portfolio (PXMC)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
1,524 | Equifax, Inc. | $ | 69,830 | ||||||||
4,013 | Fluor Corp. | 231,751 | |||||||||
3,107 | General Cable Corp.(a) | 91,470 | |||||||||
622 | Hubbell, Inc., Class B | 49,909 | |||||||||
2,631 | Iron Mountain, Inc. | 79,903 | |||||||||
3,853 | Jacobs Engineering Group, Inc.(a) | 168,877 | |||||||||
13,990 | JetBlue Airways Corp.(a) | 66,453 | |||||||||
3,699 | KBR, Inc. | 125,248 | |||||||||
4,266 | Navistar International Corp.(a) | 144,831 | |||||||||
3,923 | Oshkosh Corp.(a) | 89,562 | |||||||||
1,179 | Pall Corp. | 70,280 | |||||||||
2,744 | Parker Hannifin Corp. | 240,621 | |||||||||
7,279 | Republic Services, Inc. | 199,226 | |||||||||
2,345 | Rockwell Collins, Inc. | 131,062 | |||||||||
1,249 | Snap-On, Inc. | 78,112 | |||||||||
16,445 | Southwest Airlines Co. | 136,165 | |||||||||
2,785 | Spirit Aerosystems Holdings, Inc., Class A(a) | 69,625 | |||||||||
887 | Thomas & Betts Corp.(a) | 63,784 | |||||||||
2,205 | URS Corp. | 91,089 | |||||||||
639 | W.W. Grainger, Inc. | 132,797 | |||||||||
1,018 | WESCO International, Inc.(a) | 67,585 | |||||||||
3,120,334 | |||||||||||
Information Technology—13.4% | |||||||||||
2,995 | Amdocs Ltd. (Guernsey) | 95,840 | |||||||||
4,266 | Analog Devices, Inc. | 166,289 | |||||||||
1,955 | Autodesk, Inc.(a) | 76,968 | |||||||||
4,737 | Avnet, Inc.(a) | 170,911 | |||||||||
5,325 | CA, Inc. | 140,686 | |||||||||
4,510 | Electronic Arts, Inc.(a) | 69,364 | |||||||||
5,756 | Fidelity National Information Services, Inc. | 193,805 | |||||||||
2,354 | Fiserv, Inc.(a) | 165,463 | |||||||||
2,873 | Harris Corp. | 130,836 | |||||||||
5,344 | Jabil Circuit, Inc. | 125,317 | |||||||||
2,023 | KLA-Tencor Corp. | 105,499 | |||||||||
2,808 | Linear Technology Corp. | 91,850 | |||||||||
4,928 | Maxim Integrated Products, Inc. | 145,770 | |||||||||
3,530 | Microchip Technology, Inc. | 124,750 | |||||||||
5,997 | Paychex, Inc. | 185,787 | |||||||||
13,443 | Symantec Corp.(a) | 222,078 | |||||||||
773 | SYNNEX Corp.(a) | 29,444 | |||||||||
7,425 | Western Union Co. (The) | 136,471 | |||||||||
3,304 | Xilinx, Inc. | 120,200 | |||||||||
2,497,328 | |||||||||||
Materials—6.1% | |||||||||||
1,018 | Airgas, Inc. | 93,290 | |||||||||
1,065 | Albemarle Corp. | 69,545 | |||||||||
3,137 | Ball Corp. | 131,001 | |||||||||
2,294 | Celanese Corp., Series A | 111,167 | |||||||||
3,668 | Crown Holdings, Inc.(a) | 135,643 | |||||||||
1,326 | International Flavors & Fragrances, Inc. | 79,838 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
2,232 | Reliance Steel & Aluminum Co. | $ | 124,747 | ||||||||
1,442 | Rockwood Holdings, Inc.(a) | 79,800 | |||||||||
4,031 | Southern Copper Corp. | 132,539 | |||||||||
8,009 | Steel Dynamics, Inc. | 102,275 | |||||||||
1,553 | Valspar Corp. (The) | 79,436 | |||||||||
1,139,281 | |||||||||||
Telecommunication Services—1.0% | |||||||||||
9,431 | MetroPCS Communications, Inc.(a) | 68,846 | |||||||||
8,808 | NII Holdings, Inc.(a) | 123,268 | |||||||||
192,114 | |||||||||||
Utilities—1.1% | |||||||||||
2,007 | AGL Resources, Inc. | 79,136 | |||||||||
3,663 | American Water Works Co., Inc. | 125,421 | |||||||||
204,557 | |||||||||||
Total Common Stocks and Other Equity Interests (Cost $18,503,641) | 18,612,881 | ||||||||||
Money Market Fund—0.5% | |||||||||||
86,317 | Goldman Sachs Financial Square Prime Obligations - Institutional Share Class (Cost $86,317) | 86,317 | |||||||||
Total Investments (Cost $18,589,958)—100.4% | 18,699,198 | ||||||||||
Liabilities in excess of other assets—(0.4%) | (76,453 | ) | |||||||||
Net Assets—100.0% | $ | 18,622,745 |
Investment Abbreviations:
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
(a) Non-income producing security.
See Notes to Financial Statements.
39
Schedule of Investments
PowerShares Fundamental Pure Mid Growth Portfolio (PXMG)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.0% | |||||||||||
Consumer Discretionary—14.0% | |||||||||||
17,069 | Apollo Group, Inc., Class A(a) | $ | 601,170 | ||||||||
22,458 | Bed Bath & Beyond, Inc.(a) | 1,580,819 | |||||||||
29,241 | CarMax, Inc.(a) | 902,670 | |||||||||
9,000 | Coach, Inc. | 658,440 | |||||||||
9,868 | Dick's Sporting Goods, Inc. | 499,321 | |||||||||
17,838 | Discovery Communications, Inc., Class A(a) | 970,744 | |||||||||
15,056 | Dollar General Corp.(a) | 714,558 | |||||||||
7,940 | Dollar Tree, Inc.(a) | 807,180 | |||||||||
13,807 | Las Vegas Sands Corp. | 766,150 | |||||||||
20,613 | Lear Corp. | 855,439 | |||||||||
9,397 | O'Reilly Automotive, Inc.(a) | 991,008 | |||||||||
5,438 | PVH Corp. | 482,894 | |||||||||
3,364 | Ralph Lauren Corp. | 579,516 | |||||||||
14,389 | Ross Stores, Inc. | 886,219 | |||||||||
6,524 | Wynn Resorts Ltd. | 870,302 | |||||||||
12,166,430 | |||||||||||
Consumer Staples—4.3% | |||||||||||
9,989 | Church & Dwight Co., Inc. | 507,441 | |||||||||
10,756 | J.M. Smucker Co. (The) | 856,500 | |||||||||
9,505 | Mead Johnson Nutrition Co. | 813,248 | |||||||||
8,708 | Ralcorp Holdings, Inc.(a) | 634,030 | |||||||||
11,140 | Whole Foods Market, Inc. | 925,400 | |||||||||
3,736,619 | |||||||||||
Energy—12.5% | |||||||||||
40,379 | Alpha Natural Resources, Inc.(a) | 651,313 | |||||||||
23,025 | Cameron International Corp.(a) | 1,180,031 | |||||||||
28,262 | CONSOL Energy, Inc. | 939,429 | |||||||||
43,000 | Denbury Resources, Inc.(a) | 818,720 | |||||||||
12,853 | FMC Technologies, Inc.(a) | 604,091 | |||||||||
9,878 | Helmerich & Payne, Inc. | 507,630 | |||||||||
13,516 | HollyFrontier Corp. | 416,563 | |||||||||
15,391 | Noble Energy, Inc. | 1,528,634 | |||||||||
8,249 | Oceaneering International, Inc. | 425,896 | |||||||||
6,222 | Oil States International, Inc.(a) | 495,147 | |||||||||
7,152 | Pioneer Natural Resources Co. | 828,345 | |||||||||
17,156 | Plains Exploration & Production Co.(a) | 700,823 | |||||||||
24,864 | Southwestern Energy Co.(a) | 785,205 | |||||||||
10,165 | Whiting Petroleum Corp.(a) | 581,438 | |||||||||
9,697 | World Fuel Services Corp. | 427,250 | |||||||||
10,890,515 | |||||||||||
Financials—15.6% | |||||||||||
4,137 | Affiliated Managers Group, Inc.(a) | 470,046 | |||||||||
7,057 | Alexandria Real Estate Equities, Inc. REIT | 528,710 | |||||||||
9,858 | BlackRock, Inc. | 1,888,596 | |||||||||
180,089 | Chimera Investment Corp. REIT | 520,457 | |||||||||
5,551 | Federal Realty Investment Trust REIT | 558,764 | |||||||||
39,684 | HCP, Inc. REIT | 1,644,902 | |||||||||
15,312 | Health Care REIT, Inc. | 867,578 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
3,774 | IntercontinentalExchange, Inc.(a) | $ | 502,093 | ||||||||
32,928 | Invesco Ltd.(b) | 817,932 | |||||||||
22,507 | Leucadia National Corp. | 559,524 | |||||||||
61,559 | MFA Financial, Inc. REIT | 454,305 | |||||||||
8,681 | MSCI, Inc., Class A(a) | 317,638 | |||||||||
10,546 | Public Storage REIT | 1,510,820 | |||||||||
9,630 | SL Green Realty Corp. REIT | 793,897 | |||||||||
19,033 | T. Rowe Price Group, Inc. | 1,201,268 | |||||||||
16,323 | Ventas, Inc. REIT | 959,629 | |||||||||
13,596,159 | |||||||||||
Health Care—13.8% | |||||||||||
23,015 | Agilent Technologies, Inc. | 970,773 | |||||||||
8,539 | AMERIGROUP Corp.(a) | 527,369 | |||||||||
5,914 | Cerner Corp.(a) | 479,566 | |||||||||
12,394 | DaVita, Inc.(a) | 1,097,860 | |||||||||
13,234 | Endo Pharmaceuticals Holdings, Inc.(a) | 465,043 | |||||||||
7,879 | Henry Schein, Inc.(a) | 604,634 | |||||||||
26,922 | Hologic, Inc.(a) | 514,749 | |||||||||
858 | Intuitive Surgical, Inc.(a) | 496,096 | |||||||||
20,887 | Life Technologies Corp.(a) | 968,321 | |||||||||
37,809 | Mylan, Inc.(a) | 820,833 | |||||||||
32,046 | St. Jude Medical, Inc. | 1,240,821 | |||||||||
27,012 | Stryker Corp. | 1,474,045 | |||||||||
7,168 | Varian Medical Systems, Inc.(a) | 454,595 | |||||||||
13,246 | Watson Pharmaceuticals, Inc.(a) | 998,219 | |||||||||
14,936 | Zimmer Holdings, Inc. | 939,922 | |||||||||
12,052,846 | |||||||||||
Industrials—16.5% | |||||||||||
9,762 | AMETEK, Inc. | 491,321 | |||||||||
9,482 | BE Aerospace, Inc.(a) | 445,939 | |||||||||
15,400 | C.H. Robinson Worldwide, Inc. | 919,996 | |||||||||
14,276 | Cummins, Inc. | 1,653,589 | |||||||||
16,362 | Expeditors International of Washington, Inc. | 654,480 | |||||||||
10,338 | Fastenal Co. | 484,025 | |||||||||
5,795 | Flowserve Corp. | 666,019 | |||||||||
10,055 | Goodrich Corp. | 1,261,500 | |||||||||
7,725 | Joy Global, Inc. | 546,698 | |||||||||
8,784 | Kansas City Southern | 676,544 | |||||||||
8,613 | Precision Castparts Corp. | 1,519,075 | |||||||||
34,145 | Quanta Services, Inc.(a) | 755,287 | |||||||||
6,106 | Roper Industries, Inc. | 622,201 | |||||||||
18,186 | Stanley Black & Decker, Inc. | 1,330,488 | |||||||||
4,288 | TransDigm Group, Inc.(a) | 540,803 | |||||||||
134,924 | US Airways Group, Inc.(a) | 1,384,320 | |||||||||
15,704 | Xylem, Inc. | 437,828 | |||||||||
14,390,113 | |||||||||||
Information Technology—16.0% | |||||||||||
47,472 | Activision Blizzard, Inc. | 610,965 | |||||||||
39,396 | Adobe Systems, Inc.(a) | 1,322,130 |
See Notes to Financial Statements.
40
Schedule of Investments (Continued)
PowerShares Fundamental Pure Mid Growth Portfolio (PXMG)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
14,088 | Altera Corp. | $ | 501,110 | ||||||||
10,515 | Amphenol Corp., Class A | 611,342 | |||||||||
15,213 | BMC Software, Inc.(a) | 627,688 | |||||||||
25,130 | Broadcom Corp., Class A | 919,758 | |||||||||
81,719 | Brocade Communications Systems, Inc.(a) | 452,723 | |||||||||
7,218 | Citrix Systems, Inc.(a) | 617,933 | |||||||||
11,996 | Cognizant Technology Solutions Corp., Class A(a) | 879,547 | |||||||||
18,379 | First Solar, Inc.(a) | 338,174 | |||||||||
14,996 | Intuit, Inc. | 869,318 | |||||||||
23,884 | Juniper Networks, Inc.(a) | 511,834 | |||||||||
23,344 | Motorola Mobility Holdings, Inc.(a) | 906,214 | |||||||||
22,288 | NetApp, Inc.(a) | 865,443 | |||||||||
51,097 | NVIDIA Corp.(a) | 664,261 | |||||||||
52,761 | ON Semiconductor Corp.(a) | 435,806 | |||||||||
23,892 | SanDisk Corp.(a) | 884,243 | |||||||||
14,744 | Synopsys, Inc.(a) | 442,467 | |||||||||
38,815 | Western Digital Corp.(a) | 1,506,410 | |||||||||
13,967,366 | |||||||||||
Materials—6.5% | |||||||||||
4,421 | CF Industries Holdings, Inc. | 853,518 | |||||||||
13,511 | Cliffs Natural Resources, Inc. | 841,195 | |||||||||
18,718 | Ecolab, Inc. | 1,192,149 | |||||||||
5,080 | FMC Corp. | 561,086 | |||||||||
30,790 | Mosaic Co. (The) | 1,626,328 | |||||||||
8,689 | Sigma-Aldrich Corp. | 616,050 | |||||||||
5,690,326 | |||||||||||
Telecommunication Services—0.8% | |||||||||||
12,526 | Crown Castle International Corp.(a) | 709,097 | |||||||||
Total Common Stocks and Other Equity Interests (Cost $85,441,742) | 87,199,471 | ||||||||||
Money Market Fund—0.1% | |||||||||||
116,850 | Goldman Sachs Financial Square Prime Obligations - Institutional Share Class (Cost $116,850) | 116,850 | |||||||||
Total Investments (Cost $85,558,592)—100.1% | 87,316,321 | ||||||||||
Liabilities in excess of other assets—(0.1%) | (112,919 | ) | |||||||||
Net Assets—100.0% | $ | 87,203,402 |
Investment Abbreviations:
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) 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.
41
Schedule of Investments
PowerShares Fundamental Pure Mid Value Portfolio (PXMV)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.0% | |||||||||||
Consumer Discretionary—22.7% | |||||||||||
2,140 | Abercrombie & Fitch Co., Class A | $ | 107,364 | ||||||||
5,673 | American Eagle Outfitters, Inc. | 102,171 | |||||||||
2,219 | AutoNation, Inc.(a) | 76,733 | |||||||||
2,608 | Brinker International, Inc. | 82,074 | |||||||||
9,087 | Carnival Corp. | 295,237 | |||||||||
2,290 | Charter Communications, Inc., Class A(a) | 138,476 | |||||||||
10,475 | D.R. Horton, Inc. | 171,266 | |||||||||
1,452 | Dillard's, Inc., Class A | 93,741 | |||||||||
2,103 | Domino's Pizza, Inc. | 79,514 | |||||||||
3,841 | Foot Locker, Inc. | 117,496 | |||||||||
16,447 | Gannett Co., Inc. | 227,298 | |||||||||
9,075 | Gap, Inc. (The) | 258,638 | |||||||||
3,946 | Genuine Parts Co. | 255,622 | |||||||||
23,526 | Goodyear Tire & Rubber Co. (The)(a) | 258,316 | |||||||||
9,341 | H&R Block, Inc. | 137,313 | |||||||||
3,121 | Hanesbrands, Inc.(a) | 88,075 | |||||||||
4,458 | Harley-Davidson, Inc. | 233,287 | |||||||||
3,120 | Hasbro, Inc. | 114,629 | |||||||||
8,260 | International Game Technology | 128,691 | |||||||||
5,939 | J.C. Penney Co., Inc. | 214,160 | |||||||||
6,584 | Jones Group, Inc. (The) | 73,873 | |||||||||
5,594 | Leggett & Platt, Inc. | 121,781 | |||||||||
4,245 | Lennar Corp., Class A | 117,756 | |||||||||
15,188 | Liberty Interactive Corp., Class A(a) | 286,142 | |||||||||
5,884 | Limited Brands, Inc. | 292,435 | |||||||||
4,182 | Marriott International, Inc., Class A | 163,474 | |||||||||
5,776 | McGraw-Hill Cos., Inc. (The) | 284,006 | |||||||||
12,263 | MGM Resorts International(a) | 164,569 | |||||||||
2,369 | Mohawk Industries, Inc.(a) | 158,770 | |||||||||
9,899 | Newell Rubbermaid, Inc. | 180,162 | |||||||||
146 | NVR, Inc.(a) | 114,455 | |||||||||
21,474 | Office Depot, Inc.(a) | 65,281 | |||||||||
6,207 | Omnicom Group, Inc. | 318,481 | |||||||||
9,912 | PulteGroup, Inc.(a) | 97,534 | |||||||||
11,193 | RadioShack Corp. | 57,980 | |||||||||
2,425 | Rent-A-Center, Inc. | 82,959 | |||||||||
5,489 | Royal Caribbean Cruises Ltd. | 150,234 | |||||||||
7,240 | Saks, Inc.(a) | 79,350 | |||||||||
4,073 | Sears Holdings Corp.(a) | 219,046 | |||||||||
4,384 | Service Corp. International | 50,767 | |||||||||
2,997 | Starwood Hotels & Resorts Worldwide, Inc. | 177,422 | |||||||||
4,186 | Toll Brothers, Inc.(a) | 106,324 | |||||||||
4,980 | TRW Automotive Holdings Corp.(a) | 227,636 | |||||||||
201 | Washington Post Co. (The), Class B | 76,012 | |||||||||
4,403 | Whirlpool Corp. | 281,880 | |||||||||
2,060 | Williams-Sonoma, Inc. | 79,701 | |||||||||
2,852 | Wyndham Worldwide Corp. | 143,570 | |||||||||
7,351,701 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
Consumer Staples—5.4% | |||||||||||
15,762 | Avon Products, Inc. | $ | 340,459 | ||||||||
5,079 | Campbell Soup Co. | 171,823 | |||||||||
5,162 | Constellation Brands, Inc., Class A(a) | 111,499 | |||||||||
12,020 | Dean Foods Co.(a) | 147,606 | |||||||||
4,094 | Molson Coors Brewing Co., Class B | 170,228 | |||||||||
30,650 | Rite Aid Corp.(a) | 44,442 | |||||||||
13,641 | Sara Lee Corp. | 300,648 | |||||||||
8,945 | Smithfield Foods, Inc.(a) | 187,487 | |||||||||
14,176 | Tyson Foods, Inc., Class A | 258,712 | |||||||||
1,732,904 | |||||||||||
Energy—2.7% | |||||||||||
5,435 | Forest Oil Corp.(a) | 72,394 | |||||||||
4,001 | Helix Energy Solutions Group, Inc.(a) | 81,660 | |||||||||
5,127 | Patterson-UTI Energy, Inc. | 82,904 | |||||||||
782 | SEACOR Holdings, Inc.(a) | 72,671 | |||||||||
9,380 | Tesoro Corp.(a) | 218,085 | |||||||||
1,363 | Tidewater, Inc. | 75,006 | |||||||||
1,646 | Unit Corp.(a) | 69,544 | |||||||||
12,190 | WPX Energy, Inc.(a) | 214,178 | |||||||||
886,442 | |||||||||||
Financials—21.8% | |||||||||||
2,808 | American Financial Group, Inc. | 109,287 | |||||||||
85 | American National Insurance Co. | 5,967 | |||||||||
5,249 | Apartment Investment & Management Co., Class A REIT | 142,510 | |||||||||
7,807 | Associated Banc-Corp. | 104,067 | |||||||||
4,901 | Assurant, Inc. | 197,706 | |||||||||
7,194 | Brandywine Realty Trust REIT | 85,321 | |||||||||
13,321 | Brookfield Office Properties, Inc. (Canada) | 241,909 | |||||||||
17,869 | CapitalSource, Inc. | 115,255 | |||||||||
4,337 | CBL & Associates Properties, Inc. REIT | 80,798 | |||||||||
6,249 | Cincinnati Financial Corp. | 222,590 | |||||||||
1,490 | City National Corp. | 79,358 | |||||||||
12,452 | CNO Financial Group, Inc.(a) | 90,526 | |||||||||
8,277 | Comerica, Inc. | 265,030 | |||||||||
2,113 | Commerce Bancshares, Inc. | 84,731 | |||||||||
4,736 | CommonWealth REIT | 88,800 | |||||||||
6,374 | DDR Corp. REIT | 94,335 | |||||||||
9,365 | Duke Realty Corp. REIT | 138,789 | |||||||||
13,259 | E*TRADE Financial Corp.(a) | 140,943 | |||||||||
4,126 | Federated Investors, Inc., Class B | 91,102 | |||||||||
8,877 | Fidelity National Financial, Inc., Class A | 171,060 | |||||||||
4,407 | First American Financial Corp. | 73,817 | |||||||||
11,691 | First Horizon National Corp. | 107,323 | |||||||||
7,244 | Fulton Financial Corp. | 75,990 | |||||||||
1,488 | Hanover Insurance Group, Inc. (The) | 60,056 | |||||||||
3,527 | HCC Insurance Holdings, Inc. | 112,723 | |||||||||
5,527 | Hospitality Properties Trust REIT | 152,435 | |||||||||
29,023 | Hudson City Bancorp, Inc. | 204,902 |
See Notes to Financial Statements.
42
Schedule of Investments (Continued)
PowerShares Fundamental Pure Mid Value Portfolio (PXMV)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
35,022 | Huntington Bancshares, Inc. | $ | 234,297 | ||||||||
924 | Kemper Corp. | 27,711 | |||||||||
6,398 | Legg Mason, Inc. | 166,796 | |||||||||
3,637 | Liberty Property Trust REIT | 132,569 | |||||||||
3,564 | M&T Bank Corp. | 307,466 | |||||||||
3,265 | Mack-Cali Realty Corp. REIT | 93,771 | |||||||||
6,373 | Northern Trust Corp. | 303,291 | |||||||||
11,995 | Old Republic International Corp. | 119,350 | |||||||||
9,304 | PHH Corp.(a) | 144,212 | |||||||||
6,898 | Piedmont Office Realty Trust, Inc., Class A REIT | 122,371 | |||||||||
3,905 | Plum Creek Timber Co., Inc. REIT | 164,166 | |||||||||
1,921 | Potlatch Corp. REIT | 60,127 | |||||||||
7,865 | ProLogis, Inc. REIT | 281,410 | |||||||||
4,319 | Protective Life Corp. | 126,374 | |||||||||
1,919 | Regency Centers Corp. REIT | 86,278 | |||||||||
14,436 | SLM Corp. | 214,086 | |||||||||
1,702 | StanCorp Financial Group, Inc. | 65,323 | |||||||||
44,127 | Synovus Financial Corp. | 92,667 | |||||||||
7,473 | TCF Financial Corp. | 85,715 | |||||||||
3,176 | Torchmark Corp. | 154,703 | |||||||||
12,901 | Unum Group | 306,270 | |||||||||
3,346 | W.R. Berkley Corp. | 126,010 | |||||||||
3,295 | Weingarten Realty Investors REIT | 87,515 | |||||||||
71 | White Mountains Insurance Group Ltd. | 37,133 | |||||||||
9,712 | Zions Bancorp. | 198,028 | |||||||||
7,074,969 | |||||||||||
Health Care—4.9% | |||||||||||
6,780 | CareFusion Corp.(a) | 175,670 | |||||||||
9,015 | Community Health Systems, Inc.(a) | 219,425 | |||||||||
7,055 | Coventry Health Care, Inc. | 211,580 | |||||||||
11,481 | Health Management Associates, Inc., Class A(a) | 82,663 | |||||||||
4,913 | Health Net, Inc.(a) | 174,952 | |||||||||
6,515 | Kindred Healthcare, Inc.(a) | 62,805 | |||||||||
2,412 | LifePoint Hospitals, Inc.(a) | 94,116 | |||||||||
3,924 | Omnicare, Inc. | 136,712 | |||||||||
3,570 | Quest Diagnostics, Inc. | 205,953 | |||||||||
1,128 | Teleflex, Inc. | 70,692 | |||||||||
31,164 | Tenet Healthcare Corp.(a) | 161,741 | |||||||||
1,596,309 | |||||||||||
Industrials—11.9% | |||||||||||
1 | ACCO Brands Corp.(a) | 9 | |||||||||
1,165 | Alliant Techsystems, Inc. | 62,095 | |||||||||
5,570 | Avery Dennison Corp. | 178,129 | |||||||||
11,553 | Avis Budget Group, Inc.(a) | 152,037 | |||||||||
2,533 | Cintas Corp. | 99,218 | |||||||||
2,424 | Con-way, Inc. | 78,780 | |||||||||
865 | Dollar Thrifty Automotive Group, Inc.(a) | 69,944 | |||||||||
7,563 | Exelis, Inc. | 87,201 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
4,481 | Harsco Corp. | $ | 99,926 | ||||||||
17,077 | Hertz Global Holdings, Inc.(a) | 263,157 | |||||||||
2,100 | Huntington Ingalls Industries, Inc.(a) | 82,845 | |||||||||
8,445 | ITT Corp. | 189,675 | |||||||||
5,364 | Manpower, Inc. | 228,506 | |||||||||
19,400 | Masco Corp. | 255,692 | |||||||||
4,630 | Owens Corning(a) | 159,041 | |||||||||
2,520 | Pentair, Inc. | 109,217 | |||||||||
11,133 | Pitney Bowes, Inc. | 190,708 | |||||||||
17,228 | R.R. Donnelley & Sons Co. | 215,522 | |||||||||
2,737 | Robert Half International, Inc. | 81,563 | |||||||||
2,002 | Rockwell Automation, Inc. | 154,835 | |||||||||
2,734 | Ryder System, Inc. | 133,200 | |||||||||
3,819 | Shaw Group, Inc. (The)(a) | 115,601 | |||||||||
1,654 | SkyWest, Inc. | 14,869 | |||||||||
1,472 | SPX Corp. | 113,020 | |||||||||
6,023 | Terex Corp.(a) | 136,361 | |||||||||
9,857 | Textron, Inc. | 262,590 | |||||||||
1,967 | Timken Co. (The) | 111,155 | |||||||||
2,445 | Trinity Industries, Inc. | 72,372 | |||||||||
2,137 | United Rentals, Inc.(a) | 99,755 | |||||||||
1,566 | United Stationers, Inc. | 44,412 | |||||||||
3,861,435 | |||||||||||
Information Technology—6.4% | |||||||||||
13,889 | Advanced Micro Devices, Inc.(a) | 102,223 | |||||||||
1,002 | Anixter International, Inc.(a) | 68,717 | |||||||||
9,164 | AOL, Inc.(a) | 229,467 | |||||||||
5,266 | Arrow Electronics, Inc.(a) | 221,435 | |||||||||
3,789 | CoreLogic, Inc.(a) | 63,276 | |||||||||
1,847 | Diebold, Inc. | 72,864 | |||||||||
1,608 | IAC/InterActiveCorp. | 77,425 | |||||||||
3,054 | Lexmark International, Inc., Class A | 91,925 | |||||||||
24,845 | MEMC Electronic Materials, Inc.(a) | 89,194 | |||||||||
39,244 | Micron Technology, Inc.(a) | 258,618 | |||||||||
2,890 | Molex, Inc. | 79,735 | |||||||||
4,129 | NCR Corp.(a) | 97,032 | |||||||||
13,635 | SAIC, Inc. | 165,802 | |||||||||
5,672 | Sanmina-SCI Corp.(a) | 50,481 | |||||||||
2,792 | Tech Data Corp.(a) | 150,182 | |||||||||
4,638 | Total System Services, Inc. | 109,086 | |||||||||
4,687 | Unisys Corp.(a) | 87,459 | |||||||||
6,514 | Vishay Intertechnology, Inc.(a) | 73,087 | |||||||||
2,088,008 | |||||||||||
Materials—8.3% | |||||||||||
11,683 | AK Steel Holding Corp. | 86,688 | |||||||||
2,672 | Allegheny Technologies, Inc. | 114,736 | |||||||||
3,240 | Ashland, Inc. | 213,419 | |||||||||
3,520 | Bemis Co., Inc. | 114,013 | |||||||||
1,704 | Cabot Corp. | 73,494 | |||||||||
8,634 | Commercial Metals Co. | 127,610 |
See Notes to Financial Statements.
43
Schedule of Investments (Continued)
PowerShares Fundamental Pure Mid Value Portfolio (PXMV)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
1,183 | Cytec Industries, Inc. | $ | 75,203 | ||||||||
3,157 | Eastman Chemical Co. | 170,383 | |||||||||
9,633 | Huntsman Corp. | 136,403 | |||||||||
921 | Martin Marietta Materials, Inc. | 76,332 | |||||||||
6,093 | MeadWestvaco Corp.(a) | 171,823 | |||||||||
8,200 | Owens-Illinois, Inc.(a) | 190,650 | |||||||||
2,724 | Packaging Corp. of America | 79,514 | |||||||||
3,990 | RPM International, Inc. | 106,014 | |||||||||
1,436 | Scotts Miracle-Gro Co. (The), Class A | 75,246 | |||||||||
6,421 | Sealed Air Corp. | 123,155 | |||||||||
1,447 | Sherwin-Williams Co. (The) | 174,045 | |||||||||
2,930 | Sonoco Products Co. | 97,071 | |||||||||
10,754 | United States Steel Corp. | 304,661 | |||||||||
3,851 | Vulcan Materials Co. | 164,861 | |||||||||
2,675,321 | |||||||||||
Telecommunication Services—1.9% | |||||||||||
64,502 | Frontier Communications Corp. | 260,588 | |||||||||
4,250 | Telephone & Data Systems, Inc. | 103,233 | |||||||||
22,046 | Windstream Corp. | 247,797 | |||||||||
611,618 | |||||||||||
Utilities—14.0% | |||||||||||
3,736 | Alliant Energy Corp. | 169,017 | |||||||||
2,727 | Atmos Energy Corp. | 88,846 | |||||||||
12,719 | Calpine Corp.(a) | 238,481 | |||||||||
15,380 | CenterPoint Energy, Inc. | 310,830 | |||||||||
8,061 | CMS Energy Corp. | 185,322 | |||||||||
52,572 | GenOn Energy, Inc.(a) | 111,978 | |||||||||
6,157 | Great Plains Energy, Inc. | 125,726 | |||||||||
3,122 | Hawaiian Electric Industries, Inc. | 82,858 | |||||||||
3,013 | Integrys Energy Group, Inc. | 164,630 | |||||||||
4,507 | MDU Resources Group, Inc. | 103,391 | |||||||||
2,004 | National Fuel Gas Co. | 94,829 | |||||||||
11,988 | NiSource, Inc. | 295,504 | |||||||||
8,530 | Northeast Utilities | 313,648 | |||||||||
8,622 | NV Energy, Inc. | 143,556 | |||||||||
2,712 | OGE Energy Corp. | 146,340 | |||||||||
2,862 | ONEOK, Inc. | 245,817 | |||||||||
11,581 | Pepco Holdings, Inc. | 219,113 | |||||||||
2,026 | Piedmont Natural Gas Co., Inc. | 61,752 | |||||||||
4,316 | Pinnacle West Capital Corp. | 208,679 | |||||||||
3,839 | PNM Resources, Inc. | 72,020 | |||||||||
3,200 | Portland General Electric Co. | 82,656 | |||||||||
5,676 | Questar Corp. | 112,101 | |||||||||
4,325 | SCANA Corp. | 199,469 | |||||||||
8,060 | TECO Energy, Inc. | 145,241 | |||||||||
4,813 | UGI Corp. | 140,443 | |||||||||
2,657 | Vectren Corp. | 78,249 | |||||||||
4,202 | Westar Energy, Inc. | 120,555 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
1,897 | WGL Holdings, Inc. | $ | 76,089 | ||||||||
5,076 | Wisconsin Energy Corp. | 187,000 | |||||||||
4,524,140 | |||||||||||
Total Common Stocks and Other Equity Interests (Cost $31,652,065) | 32,402,847 | ||||||||||
Money Market Fund—0.3% | |||||||||||
92,983 | Goldman Sachs Financial Square Prime Obligations - Institutional Share Class (Cost $92,983) | 92,983 | |||||||||
Total Investments (Cost $31,745,048)—100.3% | 32,495,830 | ||||||||||
Liabilities in excess of other assets—(0.3%) | (88,121 | ) | |||||||||
Net Assets—100.0% | $ | 32,407,709 |
Investment Abbreviations:
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
(a) Non-income producing security.
See Notes to Financial Statements.
44
Schedule of Investments
PowerShares Fundamental Pure Small Core Portfolio (PXSC)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—99.9% | |||||||||||
Consumer Discretionary—13.6% | |||||||||||
4,008 | Aeropostale, Inc.(a) | $ | 88,897 | ||||||||
476 | AFC Enterprises, Inc.(a) | 8,130 | |||||||||
208 | America's Car-Mart, Inc.(a) | 9,555 | |||||||||
244 | Blue Nile, Inc.(a) | 7,388 | |||||||||
1,009 | Buckle, Inc. (The) | 46,596 | |||||||||
1,713 | Cabela's, Inc.(a) | 64,768 | |||||||||
600 | Cambium Learning Group, Inc.(a) | 1,362 | |||||||||
408 | Caribou Coffee Co., Inc.(a) | 6,695 | |||||||||
142 | Cavco Industries, Inc.(a) | 7,327 | |||||||||
400 | Choice Hotels International, Inc. | 15,048 | |||||||||
366 | Churchill Downs, Inc. | 21,726 | |||||||||
4,534 | Cinemark Holdings, Inc. | 104,101 | |||||||||
1,952 | Digital Generation, Inc.(a) | 18,115 | |||||||||
625 | DineEquity, Inc.(a) | 30,362 | |||||||||
2,868 | DreamWorks Animation SKG, Inc., Class A(a) | 51,653 | |||||||||
572 | Dunkin' Brands Group, Inc. | 18,516 | |||||||||
1,237 | Education Management Corp.(a) | 15,339 | |||||||||
236 | Einstein Noah Restaurant Group, Inc. | 3,339 | |||||||||
1,711 | Express, Inc.(a) | 40,414 | |||||||||
300 | Fisher Communications, Inc.(a) | 9,837 | |||||||||
608 | Fuel Systems Solutions, Inc.(a) | 14,258 | |||||||||
739 | Genesco, Inc.(a) | 55,425 | |||||||||
2,892 | Gentex Corp. | 63,537 | |||||||||
886 | G-III Apparel Group Ltd.(a) | 23,789 | |||||||||
�� | 1,968 | GNC Holdings, Inc., Class A | 76,870 | ||||||||
2,396 | Guess?, Inc. | 70,155 | |||||||||
2,094 | Hillenbrand, Inc. | 43,848 | |||||||||
1,360 | Interval Leisure Group, Inc. | 23,501 | |||||||||
970 | ITT Educational Services, Inc.(a) | 64,039 | |||||||||
1,354 | John Wiley & Sons, Inc., Class A | 61,187 | |||||||||
645 | Kirkland's, Inc.(a) | 9,443 | |||||||||
836 | Knology, Inc.(a) | 16,260 | |||||||||
1,029 | Krispy Kreme Doughnuts, Inc.(a) | 7,543 | |||||||||
2,570 | Lions Gate Entertainment Corp. (Canada)(a) | 31,431 | |||||||||
9,363 | Live Nation Entertainment, Inc.(a) | 84,829 | |||||||||
851 | Maidenform Brands, Inc.(a) | 19,428 | |||||||||
884 | Martha Stewart Living Omnimedia, Inc., Class A | 3,156 | |||||||||
748 | MDC Partners, Inc., Class A (Canada) | 7,719 | |||||||||
1,864 | National CineMedia, Inc. | 26,637 | |||||||||
624 | Nexstar Broadcasting Group, Inc., Class A(a) | 4,836 | |||||||||
340 | Outdoor Channel Holdings, Inc. | 2,516 | |||||||||
2,332 | Overstock.com, Inc.(a) | 14,062 | |||||||||
705 | Papa John's International, Inc.(a) | 28,397 | |||||||||
736 | PetMed Express, Inc. | 9,914 | |||||||||
1,196 | Pier 1 Imports, Inc. | 20,547 | |||||||||
1,072 | Polaris Industries, Inc. | 85,160 | |||||||||
152 | Rentrak Corp.(a) | 2,876 | |||||||||
3,046 | Sally Beauty Holdings, Inc.(a) | 81,024 | |||||||||
559 | Select Comfort Corp.(a) | 16,144 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
1,999 | Smith & Wesson Holding Corp.(a) | $ | 16,492 | ||||||||
382 | Strayer Education, Inc. | 37,696 | |||||||||
1,892 | Texas Roadhouse, Inc. | 32,637 | |||||||||
1,128 | Town Sports International Holdings, Inc.(a) | 14,461 | |||||||||
1,513 | Tupperware Brands Corp. | 94,245 | |||||||||
631 | Universal Electronics, Inc.(a) | 10,676 | |||||||||
688 | US Auto Parts Network, Inc.(a) | 2,491 | |||||||||
3,037 | Valassis Communications, Inc.(a) | 60,740 | |||||||||
1,433 | Warnaco Group, Inc. (The)(a) | 75,892 | |||||||||
497 | Weight Watchers International, Inc. | 37,752 | |||||||||
17,549 | Wendy's Co. (The) | 85,464 | |||||||||
5,883 | Wet Seal, Inc. (The), Class A(a) | 19,355 | |||||||||
2,288 | WMS Industries, Inc.(a) | 56,079 | |||||||||
1,253 | Wolverine World Wide, Inc. | 52,563 | |||||||||
2,134,242 | |||||||||||
Consumer Staples—5.2% | |||||||||||
1,129 | Andersons, Inc. (The) | 56,902 | |||||||||
1,436 | B&G Foods, Inc. | 31,937 | |||||||||
327 | Calavo Growers, Inc. | 9,378 | |||||||||
587 | Cal-Maine Foods, Inc. | 21,150 | |||||||||
1,840 | Casey's General Stores, Inc. | 103,684 | |||||||||
809 | Diamond Foods, Inc. | 16,908 | |||||||||
4,172 | Flowers Foods, Inc. | 89,489 | |||||||||
1,119 | Hain Celestial Group, Inc. (The)(a) | 52,929 | |||||||||
548 | Inter Parfums, Inc. | 8,631 | |||||||||
406 | J & J Snack Foods Corp. | 22,760 | |||||||||
156 | Limoneira Co. | 2,622 | |||||||||
827 | Nu Skin Enterprises, Inc., Class A | 44,079 | |||||||||
608 | Revlon, Inc., Class A(a) | 10,385 | |||||||||
833 | Sanderson Farms, Inc. | 42,991 | |||||||||
1,692 | Snyders-Lance, Inc. | 43,789 | |||||||||
1,556 | Spectrum Brands Holdings, Inc.(a) | 53,697 | |||||||||
1,688 | Susser Holdings Corp.(a) | 45,053 | |||||||||
1,698 | United Natural Foods, Inc.(a) | 83,694 | |||||||||
207 | USANA Health Sciences, Inc.(a) | 8,632 | |||||||||
2,631 | Vector Group Ltd. | 45,648 | |||||||||
461 | WD-40 Co. | 20,782 | |||||||||
815,140 | |||||||||||
Energy—5.9% | |||||||||||
3,668 | ATP Oil & Gas Corp.(a) | 27,730 | |||||||||
932 | Berry Petroleum Co., Class A | 42,453 | |||||||||
2,326 | Bill Barrett Corp.(a) | 55,778 | |||||||||
1,709 | Bristow Group, Inc. | 83,485 | |||||||||
153 | Clayton Williams Energy, Inc.(a) | 11,252 | |||||||||
3,697 | Cloud Peak Energy, Inc.(a) | 56,897 | |||||||||
3,126 | CVR Energy, Inc.(a) | 94,905 | |||||||||
1,144 | Energy Partners Ltd.(a) | 18,624 | |||||||||
8,764 | EXCO Resources, Inc. | 64,328 | |||||||||
2,352 | Gastar Exploration Ltd. (Canada)(a) | 6,609 | |||||||||
876 | Global Geophysical Services, Inc.(a) | 8,383 |
See Notes to Financial Statements.
45
Schedule of Investments (Continued)
PowerShares Fundamental Pure Small Core Portfolio (PXSC)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
1,900 | Green Plains Renewable Energy, Inc.(a) | $ | 15,181 | ||||||||
882 | Gulfmark Offshore, Inc., Class A(a) | 42,486 | |||||||||
1,032 | Harvest Natural Resources, Inc.(a) | 7,100 | |||||||||
964 | Hornbeck Offshore Services, Inc.(a) | 40,131 | |||||||||
3,700 | ION Geophysical Corp.(a) | 23,051 | |||||||||
4,628 | Key Energy Services, Inc.(a) | 58,590 | |||||||||
421 | Lufkin Industries, Inc. | 32,350 | |||||||||
1,410 | Matrix Service Co.(a) | 19,247 | |||||||||
572 | Natural Gas Services Group, Inc.(a) | 7,459 | |||||||||
160 | Panhandle Oil And Gas, Inc., Class A | 4,408 | |||||||||
3,304 | Pioneer Drilling Co.(a) | 26,036 | |||||||||
10,112 | Quicksilver Resources, Inc.(a) | 47,526 | |||||||||
204 | Rignet, Inc.(a) | 3,484 | |||||||||
949 | SM Energy Co. | 62,738 | |||||||||
1,384 | Tesco Corp. (Canada)(a) | 22,601 | |||||||||
1,766 | VAALCO Energy, Inc.(a) | 16,018 | |||||||||
1,008 | Venoco, Inc.(a) | 11,199 | |||||||||
2,436 | Warren Resources, Inc.(a) | 7,527 | |||||||||
505 | Westmoreland Coal Co.(a) | 5,095 | |||||||||
922,671 | |||||||||||
Financials—23.9% | |||||||||||
1,345 | Acadia Realty Trust REIT | 31,177 | |||||||||
195 | Alleghany Corp.(a) | 66,866 | |||||||||
240 | American Assets Trust, Inc. REIT | 5,642 | |||||||||
852 | AMERISAFE, Inc.(a) | 22,765 | |||||||||
1,144 | Associated Estates Realty Corp. REIT | 19,368 | |||||||||
1,128 | Bancorp, Inc. (The)(a) | 11,585 | |||||||||
108 | Bank of Kentucky Financial Corp. | 2,723 | |||||||||
176 | Bank of Marin Bancorp | 6,524 | |||||||||
1,364 | Bankunited, Inc. | 33,554 | |||||||||
1,300 | BBCN Bancorp, Inc.(a) | 14,274 | |||||||||
737 | Berkshire Hills Bancorp, Inc. | 16,723 | |||||||||
1,548 | BGC Partners, Inc., Class A | 10,790 | |||||||||
778 | BOK Financial Corp. | 44,369 | |||||||||
1,861 | BRE Properties, Inc. REIT | 97,703 | |||||||||
172 | Bridge Capital Holdings(a) | 2,630 | |||||||||
3,115 | Brown & Brown, Inc. | 84,012 | |||||||||
372 | Bryn Mawr Bank Corp. | 7,994 | |||||||||
5,188 | Capstead Mortgage Corp. REIT | 71,231 | |||||||||
750 | Cardinal Financial Corp. | 9,053 | |||||||||
973 | Cash America International, Inc. | 45,488 | |||||||||
1,230 | CBOE Holdings, Inc. | 32,521 | |||||||||
1,132 | Centerstate Banks, Inc. | 9,101 | |||||||||
859 | Citizens, Inc.(a) | 8,255 | |||||||||
164 | Clifton Savings Bancorp, Inc. | 1,676 | |||||||||
326 | CNB Financial Corp. | 5,359 | |||||||||
420 | Cohen & Steers, Inc. | 14,801 | |||||||||
1,211 | Columbia Banking System, Inc. | 24,813 | |||||||||
3,609 | Corporate Office Properties Trust REIT | 84,992 | |||||||||
3,336 | Cubesmart REIT | 41,900 | |||||||||
2,332 | CYS Investments, Inc. REIT | 32,018 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
1,620 | Delphi Financial Group, Inc., Class A | $ | 73,580 | ||||||||
7,808 | DiamondRock Hospitality Co. REIT | 82,999 | |||||||||
3,824 | Douglas Emmett, Inc. REIT | 88,870 | |||||||||
1,212 | Dynex Capital, Inc. REIT | 11,429 | |||||||||
3,870 | East West Bancorp, Inc. | 88,120 | |||||||||
844 | EastGroup Properties, Inc. REIT | 42,453 | |||||||||
2,917 | Eaton Vance Corp. | 76,717 | |||||||||
2,044 | Education Realty Trust, Inc., REIT | 23,036 | |||||||||
728 | Enterprise Financial Services Corp. | 8,802 | |||||||||
1,749 | Entertainment Properties Trust REIT | 83,935 | |||||||||
805 | Erie Indemnity Co., Class A | 61,905 | |||||||||
2,147 | First Financial Bancorp. | 36,091 | |||||||||
948 | First Financial Bankshares, Inc. | 32,080 | |||||||||
221 | First of Long Island Corp. (The) | 6,084 | |||||||||
2,651 | First Potomac Realty Trust REIT | 32,978 | |||||||||
2,640 | First Republic Bank(a) | 87,199 | |||||||||
944 | Gain Capital Holdings, Inc. | 4,843 | |||||||||
528 | Gladstone Commercial Corp. REIT | 8,971 | |||||||||
764 | Gladstone Investment Corp. | 5,669 | |||||||||
897 | Greenhill & Co., Inc. | 34,848 | |||||||||
1,480 | Hancock Holding Co. | 47,626 | |||||||||
468 | Heritage Financial Corp. | 6,131 | |||||||||
468 | HFF, Inc., Class A(a) | 7,647 | |||||||||
2,076 | Hilltop Holdings, Inc.(a) | 16,463 | |||||||||
1,338 | Home Properties, Inc. REIT | 81,685 | |||||||||
906 | IBERIABANK Corp. | 46,269 | |||||||||
839 | Independent Bank Corp. | 23,551 | |||||||||
4,122 | Jefferies Group, Inc. | 65,663 | |||||||||
580 | JMP Group, Inc. | 4,298 | |||||||||
1,234 | Jones Lang LaSalle, Inc. | 98,646 | |||||||||
1,212 | KBW, Inc. | 20,653 | |||||||||
320 | Kearny Financial Corp. | 3,104 | |||||||||
1,580 | Kilroy Realty Corp. REIT | 74,971 | |||||||||
575 | Lakeland Financial Corp. | 14,973 | |||||||||
2,529 | LaSalle Hotel Properties REIT | 74,378 | |||||||||
2,048 | LPL Investment Holdings, Inc. | 73,503 | |||||||||
720 | LTC Properties, Inc. REIT | 23,962 | |||||||||
2,528 | Meadowbrook Insurance Group, Inc. | 22,322 | |||||||||
998 | Mid-America Apartment Communities, Inc. REIT | 67,934 | |||||||||
1,057 | Monmouth Real Estate Investment Corp., Class A REIT | 10,845 | |||||||||
396 | National Health Investors, Inc. REIT | 19,590 | |||||||||
224 | National Interstate Corp. | 5,376 | |||||||||
4,920 | National Penn Bancshares, Inc. | 45,362 | |||||||||
300 | Nicholas Financial, Inc. (Canada) | 3,969 | |||||||||
10,020 | NorthStar Realty Finance Corp. REIT | 57,114 | |||||||||
4,218 | Northwest Bancshares, Inc. | 51,966 | |||||||||
2,332 | Ocwen Financial Corp.(a) | 34,770 | |||||||||
304 | Omniamerican Bancorp, Inc.(a) | 6,095 | |||||||||
762 | PICO Holdings, Inc.(a) | 18,296 |
See Notes to Financial Statements.
46
Schedule of Investments (Continued)
PowerShares Fundamental Pure Small Core Portfolio (PXSC)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
2,312 | PrivateBancorp, Inc. | $ | 36,368 | ||||||||
985 | ProAssurance Corp. | 86,769 | |||||||||
536 | Republic Bancorp, Inc., Class A | 12,612 | |||||||||
5,536 | Resource Capital Corp. REIT | 29,894 | |||||||||
2,708 | RLJ Lodging Trust REIT | 50,856 | |||||||||
272 | Rockville Financial, Inc. | 3,185 | |||||||||
936 | Rouse Properties, Inc. REIT(a) | 12,580 | |||||||||
3,350 | Sabra Health Care REIT, Inc. | 56,079 | |||||||||
427 | Saul Centers, Inc. REIT | 17,084 | |||||||||
463 | SCBT Financial Corp. | 15,923 | |||||||||
4,102 | SEI Investments Co. | 82,819 | |||||||||
683 | Southside Bancshares, Inc. | 13,933 | |||||||||
979 | Sovran Self Storage, Inc. REIT | 51,593 | |||||||||
1,514 | Stifel Financial Corp.(a) | 55,140 | |||||||||
704 | Sun Communities, Inc. REIT | 30,800 | |||||||||
992 | Taubman Centers, Inc. REIT | 76,563 | |||||||||
1,612 | TFS Financial Corp.(a) | 15,846 | |||||||||
1,928 | Tower Group, Inc. | 41,606 | |||||||||
987 | TowneBank | 12,851 | |||||||||
2,912 | Umpqua Holdings Corp. | 38,555 | |||||||||
482 | United Financial Bancorp, Inc. | 7,731 | |||||||||
1,772 | Universal Insurance Holdings, Inc. | 7,336 | |||||||||
1,064 | Virginia Commerce Bancorp, Inc.(a) | 8,331 | |||||||||
2,231 | Waddell & Reed Financial, Inc., Class A | 71,347 | |||||||||
489 | Washington Banking Co. | 6,817 | |||||||||
2,490 | Washington Real Estate Investment Trust REIT | 73,580 | |||||||||
2,748 | Western Alliance Bancorp(a) | 24,127 | |||||||||
1,296 | Winthrop Realty Trust REIT | 13,828 | |||||||||
475 | World Acceptance Corp.(a) | 31,592 | |||||||||
3,763,423 | |||||||||||
Health Care—7.9% | |||||||||||
4,043 | Alere, Inc.(a) | 96,587 | |||||||||
444 | Almost Family, Inc.(a) | 10,825 | |||||||||
295 | Analogic Corp. | 20,122 | |||||||||
1,324 | AngioDynamics, Inc.(a) | 16,391 | |||||||||
1,460 | Arena Pharmaceuticals, Inc.(a) | 3,562 | |||||||||
664 | Assisted Living Concepts, Inc., Class A | 11,892 | |||||||||
679 | Bio-Rad Laboratories, Inc., Class A(a) | 73,325 | |||||||||
3,404 | BioScrip, Inc.(a) | 25,224 | |||||||||
635 | Chemed Corp. | 38,316 | |||||||||
201 | Computer Programs & Systems, Inc. | 11,978 | |||||||||
823 | Cooper Cos., Inc. (The) | 72,564 | |||||||||
159 | CorVel Corp.(a) | 6,915 | |||||||||
1,962 | Covance, Inc.(a) | 91,743 | |||||||||
1,092 | CryoLife, Inc.(a) | 5,777 | |||||||||
248 | Cynosure, Inc., Class A(a) | 5,126 | |||||||||
1,299 | Emeritus Corp.(a) | 22,343 | |||||||||
1,428 | eResearchTechnology, Inc.(a) | 11,281 | |||||||||
280 | Exactech, Inc.(a) | 4,340 | |||||||||
124 | Furiex Pharmaceuticals, Inc.(a) | 1,782 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
2,920 | Geron Corp.(a) | $ | 4,906 | ||||||||
1,128 | Greatbatch, Inc.(a) | 26,271 | |||||||||
622 | Haemonetics Corp.(a) | 44,517 | |||||||||
1,386 | Hanger Orthopedic Group, Inc.(a) | 32,640 | |||||||||
2,994 | HealthSouth Corp.(a) | 67,036 | |||||||||
762 | Integra LifeSciences Holdings Corp.(a) | 28,369 | |||||||||
408 | IRIS International, Inc.(a) | 5,337 | |||||||||
261 | Kensey Nash Corp. | 7,420 | |||||||||
303 | Landauer, Inc. | 15,974 | |||||||||
1,012 | LHC Group, Inc.(a) | 17,923 | |||||||||
992 | Maxygen, Inc.(a) | 5,605 | |||||||||
224 | Medtox Scientific, Inc.(a) | 4,950 | |||||||||
1,618 | Molina Healthcare, Inc.(a) | 41,502 | |||||||||
432 | Obagi Medical Products, Inc.(a) | 5,668 | |||||||||
424 | OraSure Technologies, Inc.(a) | 4,863 | |||||||||
2,702 | Patterson Cos., Inc. | 92,111 | |||||||||
10,084 | PDL BioPharma, Inc. | 63,428 | |||||||||
792 | Providence Service Corp. (The)(a) | 11,135 | |||||||||
2,373 | PSS World Medical, Inc.(a) | 56,786 | |||||||||
448 | Quidel Corp.(a) | 7,401 | |||||||||
1,946 | RTI Biologics, Inc.(a) | 6,811 | |||||||||
430 | US Physical Therapy, Inc. | 10,483 | |||||||||
3,144 | VCA Antech, Inc.(a) | 74,387 | |||||||||
1,193 | West Pharmaceutical Services, Inc. | 53,566 | |||||||||
1,471 | Wright Medical Group, Inc.(a) | 27,405 | |||||||||
1,246,587 | |||||||||||
Industrials—19.0% | |||||||||||
468 | AAON, Inc. | 9,547 | |||||||||
2,056 | AAR Corp. | 31,765 | |||||||||
1,628 | Actuant Corp., Class A | 44,396 | |||||||||
1,860 | Aegion Corp.(a) | 33,945 | |||||||||
4,877 | Aircastle Ltd. (Bermuda) | 59,256 | |||||||||
1,056 | Altra Holdings, Inc.(a) | 19,304 | |||||||||
292 | American Railcar Industries, Inc.(a) | 7,878 | |||||||||
218 | American Science & Engineering, Inc. | 14,238 | |||||||||
2,232 | American Superconductor Corp.(a) | 9,218 | |||||||||
3,843 | Babcock & Wilcox Co. (The)(a) | 94,538 | |||||||||
2,196 | Beacon Roofing Supply, Inc.(a) | 58,611 | |||||||||
848 | Blount International, Inc.(a) | 13,712 | |||||||||
332 | CAI International, Inc.(a) | 6,859 | |||||||||
959 | CLARCOR, Inc. | 46,051 | |||||||||
4,103 | Corrections Corp. of America(a) | 118,536 | |||||||||
433 | Cubic Corp. | 20,018 | |||||||||
1,744 | Curtiss-Wright Corp. | 61,546 | |||||||||
2,600 | DigitalGlobe, Inc.(a) | 31,902 | |||||||||
1,656 | Dolan Co. (The)(a) | 13,265 | |||||||||
955 | Douglas Dynamics, Inc. | 13,494 | |||||||||
1,048 | Dun & Bradstreet Corp. (The) | 81,513 | |||||||||
387 | Dynamic Materials Corp. | 7,074 | |||||||||
712 | Encore Capital Group, Inc.(a) | 16,874 |
See Notes to Financial Statements.
47
Schedule of Investments (Continued)
PowerShares Fundamental Pure Small Core Portfolio (PXSC)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
2,189 | EnerSys(a) | $ | 76,506 | ||||||||
782 | ESCO Technologies, Inc. | 26,901 | |||||||||
1,225 | Esterline Technologies Corp.(a) | 83,900 | |||||||||
4,487 | Fortune Brands Home & Security, Inc.(a) | 102,034 | |||||||||
614 | Forward Air Corp. | 20,741 | |||||||||
476 | Franklin Electric Co., Inc. | 23,871 | |||||||||
1,973 | FTI Consulting, Inc.(a) | 71,699 | |||||||||
2,839 | GenCorp, Inc.(a) | 19,504 | |||||||||
3,519 | Geo Group, Inc. (The)(a) | 72,878 | |||||||||
1,168 | GeoEye, Inc.(a) | 26,771 | |||||||||
661 | Global Power Equipment Group, Inc.(a) | 16,532 | |||||||||
378 | Gorman-Rupp Co. (The) | 10,886 | |||||||||
460 | GP Strategies Corp.(a) | 7,719 | |||||||||
5,300 | GrafTech International Ltd.(a) | 62,222 | |||||||||
2,580 | Great Lakes Dredge & Dock Corp. | 19,118 | |||||||||
6,952 | Hawaiian Holdings, Inc.(a) | 39,348 | |||||||||
1,397 | Healthcare Services Group, Inc. | 29,644 | |||||||||
2,256 | Hexcel Corp.(a) | 61,769 | |||||||||
1,432 | Hill International, Inc.(a) | 5,098 | |||||||||
695 | Houston Wire & Cable Co. | 8,542 | |||||||||
1,288 | HUB Group, Inc., Class A(a) | 45,080 | |||||||||
1,012 | ICF International, Inc.(a) | 25,239 | |||||||||
2,154 | IDEX Corp. | 93,290 | |||||||||
324 | Intersections, Inc. | 3,898 | |||||||||
1,842 | J.B. Hunt Transport Services, Inc. | 101,918 | |||||||||
1,372 | KAR Auction Services, Inc.(a) | 25,245 | |||||||||
1,086 | Kaydon Corp. | 26,640 | |||||||||
1,469 | Knight Transportation, Inc. | 24,121 | |||||||||
639 | LB Foster Co., Class A | 17,132 | |||||||||
2,027 | Lincoln Electric Holdings, Inc. | 99,343 | |||||||||
386 | LMI Aerospace, Inc.(a) | 7,060 | |||||||||
2,532 | Metalico, Inc.(a) | 8,204 | |||||||||
1,407 | Mobile Mini, Inc.(a) | 26,536 | |||||||||
1,898 | Moog, Inc., Class A(a) | 80,228 | |||||||||
765 | MSC Industrial Direct Co., Inc., Class A | 56,388 | |||||||||
385 | Multi-Color Corp. | 8,208 | |||||||||
341 | National Presto Industries, Inc. | 25,139 | |||||||||
827 | Nordson Corp. | 44,575 | |||||||||
1,004 | Old Dominion Freight Line, Inc.(a) | 44,648 | |||||||||
1,236 | On Assignment, Inc.(a) | 23,126 | |||||||||
3,127 | Orbital Sciences Corp.(a) | 39,275 | |||||||||
509 | Powell Industries, Inc.(a) | 16,598 | |||||||||
1,321 | RailAmerica, Inc.(a) | 30,621 | |||||||||
1,178 | Regal-Beloit Corp. | 79,680 | |||||||||
503 | Robbins & Myers, Inc. | 24,501 | |||||||||
270 | Sauer-Danfoss, Inc. | 11,694 | |||||||||
570 | Standard Parking Corp.(a) | 10,864 | |||||||||
2,254 | Sykes Enterprises, Inc.(a) | 35,726 | |||||||||
1,392 | Taser International, Inc.(a) | 6,403 | |||||||||
1,135 | Teledyne Technologies, Inc.(a) | 73,344 | |||||||||
2,199 | Tetra Tech, Inc.(a) | 58,713 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
349 | Textainer Group Holdings Ltd. | $ | 12,239 | ||||||||
228 | Thermon Group Holdings, Inc.(a) | 5,066 | |||||||||
864 | Titan International, Inc. | 24,961 | |||||||||
704 | TRC Cos., Inc.(a) | 4,632 | |||||||||
322 | Trex Co., Inc.(a) | 10,304 | |||||||||
503 | UniFirst Corp. | 30,562 | |||||||||
795 | Vicor Corp. | 5,541 | |||||||||
1,023 | WABCO Holdings, Inc.(a) | 64,480 | |||||||||
837 | Watsco, Inc. | 60,222 | |||||||||
2,990,667 | |||||||||||
Information Technology—15.2% | |||||||||||
491 | ACI Worldwide, Inc.(a) | 19,571 | |||||||||
1,098 | Actuate Corp.(a) | 7,796 | |||||||||
1,167 | ADTRAN, Inc. | 35,617 | |||||||||
1,581 | Advanced Energy Industries, Inc.(a) | 18,877 | |||||||||
880 | Aeroflex Holding Corp.(a) | 9,856 | |||||||||
812 | Alpha & Omega Semiconductor Ltd. (Bermuda)(a) | 8,031 | |||||||||
519 | Anaren, Inc.(a) | 9,363 | |||||||||
5,287 | Arris Group, Inc.(a) | 68,361 | |||||||||
6,984 | Atmel Corp.(a) | 61,948 | |||||||||
1,033 | ATMI, Inc.(a) | 21,703 | |||||||||
425 | Badger Meter, Inc. | 15,699 | |||||||||
1,273 | Booz Allen Hamilton Holding Corp. | 21,768 | |||||||||
9,102 | Brightpoint, Inc.(a) | 55,704 | |||||||||
1,764 | Brooks Automation, Inc. | 20,745 | |||||||||
747 | Cabot Microelectronics Corp. | 25,682 | |||||||||
3,656 | Cadence Design Systems, Inc.(a) | 42,665 | |||||||||
204 | Cass Information Systems, Inc. | 8,354 | |||||||||
538 | Cognex Corp. | 21,654 | |||||||||
537 | Coherent, Inc.(a) | 28,246 | |||||||||
474 | Computer Task Group, Inc.(a) | 6,835 | |||||||||
1,223 | Comtech Telecommunications Corp. | 37,815 | |||||||||
6,060 | Comverse Technology, Inc.(a) | 39,087 | |||||||||
720 | Cymer, Inc.(a) | 37,325 | |||||||||
2,374 | Cypress Semiconductor Corp. | 36,797 | |||||||||
524 | DDi Corp. | 6,801 | |||||||||
704 | Echelon Corp.(a) | 3,069 | |||||||||
2,115 | EchoStar Corp., Class A(a) | 61,441 | |||||||||
1,008 | Electro Scientific Industries, Inc. | 14,374 | |||||||||
3,373 | Entegris, Inc.(a) | 29,851 | |||||||||
908 | EPIQ Systems, Inc. | 10,315 | |||||||||
2,195 | Euronet Worldwide, Inc.(a) | 47,478 | |||||||||
1,200 | Exar Corp.(a) | 9,504 | |||||||||
591 | Forrester Research, Inc. | 20,951 | |||||||||
896 | FSI International, Inc.(a) | 4,543 | |||||||||
1,404 | Global Payments, Inc. | 65,188 | |||||||||
856 | GSI Group, Inc. (Canada)(a) | 10,332 | |||||||||
1,171 | Heartland Payment Systems, Inc. | 35,680 | |||||||||
1,530 | Internap Network Services Corp.(a) | 10,771 | |||||||||
1,381 | Intevac, Inc.(a) | 11,131 |
See Notes to Financial Statements.
48
Schedule of Investments (Continued)
PowerShares Fundamental Pure Small Core Portfolio (PXSC)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
1,867 | Itron, Inc.(a) | $ | 76,174 | ||||||||
808 | Ixia(a) | 10,181 | |||||||||
1,580 | Jack Henry & Associates, Inc. | 53,657 | |||||||||
216 | Keynote Systems, Inc. | 3,974 | |||||||||
1,950 | Kopin Corp.(a) | 6,961 | |||||||||
388 | LeCroy Corp.(a) | 4,012 | |||||||||
12,169 | LSI Corp.(a) | 97,839 | |||||||||
1,972 | MagnaChip Semiconductor Corp.(a) | 23,230 | |||||||||
308 | Manhattan Associates, Inc.(a) | 15,446 | |||||||||
1,445 | ManTech International Corp., Class A | 45,402 | |||||||||
651 | MAXIMUS, Inc. | 28,807 | |||||||||
2,968 | Mentor Graphics Corp.(a) | 42,888 | |||||||||
1,113 | Micrel, Inc. | 12,120 | |||||||||
111 | MicroStrategy, Inc., Class A(a) | 15,516 | |||||||||
1,576 | MKS Instruments, Inc. | 43,576 | |||||||||
293 | MoneyGram International, Inc.(a) | 4,934 | |||||||||
846 | Move, Inc.(a) | 7,360 | |||||||||
418 | Multi-Fineline Electronix, Inc.(a) | 11,073 | |||||||||
1,180 | Newport Corp.(a) | 20,143 | |||||||||
1,773 | Novellus Systems, Inc.(a) | 82,888 | |||||||||
2,116 | OmniVision Technologies, Inc.(a) | 38,977 | |||||||||
784 | Perficient, Inc.(a) | 9,416 | |||||||||
1,206 | Pericom Semiconductor Corp.(a) | 9,479 | |||||||||
1,667 | Plexus Corp.(a) | 53,961 | |||||||||
4,664 | Power-One, Inc.(a) | 19,962 | |||||||||
1,668 | Progress Software Corp.(a) | 38,597 | |||||||||
2,596 | QLogic Corp.(a) | 44,781 | |||||||||
1,805 | Quest Software, Inc.(a) | 42,002 | |||||||||
1,280 | RealNetworks, Inc. | 12,250 | |||||||||
9,600 | RF Micro Devices, Inc.(a) | 41,568 | |||||||||
576 | Rosetta Stone, Inc.(a) | 6,025 | |||||||||
1,484 | ScanSource, Inc.(a) | 48,913 | |||||||||
1,312 | SeaChange International, Inc.(a) | 10,785 | |||||||||
3,372 | Sigma Designs, Inc.(a) | 18,580 | |||||||||
635 | Silicon Laboratories, Inc.(a) | 22,536 | |||||||||
5,604 | Sonus Networks, Inc.(a) | 15,859 | |||||||||
812 | Standard Microsystems Corp.(a) | 21,502 | |||||||||
1,448 | STEC, Inc.(a) | 12,004 | |||||||||
2,464 | STR Holdings, Inc.(a) | 9,412 | |||||||||
4,292 | SunPower Corp., Class A(a) | 24,078 | |||||||||
776 | Sycamore Networks, Inc.(a) | 12,098 | |||||||||
747 | TechTarget, Inc.(a) | 5,558 | |||||||||
4,534 | Teradyne, Inc.(a) | 78,030 | |||||||||
6,676 | TriQuint Semiconductor, Inc.(a) | 32,579 | |||||||||
2,308 | TTM Technologies, Inc.(a) | 23,842 | |||||||||
1,070 | Ultra Clean Holdings, Inc.(a) | 7,329 | |||||||||
1,528 | ValueClick, Inc.(a) | 32,363 | |||||||||
1,324 | Veeco Instruments, Inc.(a) | 39,971 | |||||||||
1,020 | X-Rite, Inc.(a) | 5,651 | |||||||||
1,286 | Zebra Technologies Corp., Class A(a) | 49,884 | |||||||||
268 | Zygo Corp.(a) | 5,304 | |||||||||
2,400,405 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
Materials—6.4% | |||||||||||
1,032 | AMCOL International Corp. | $ | 34,015 | ||||||||
392 | American Vanguard Corp. | 9,800 | |||||||||
1,781 | AptarGroup, Inc. | 97,082 | |||||||||
396 | Arabian American Development Co.(a) | 3,457 | |||||||||
1,016 | Buckeye Technologies, Inc. | 32,929 | |||||||||
1,476 | Calgon Carbon Corp.(a) | 20,428 | |||||||||
1,352 | Clearwater Paper Corp.(a) | 44,575 | |||||||||
874 | Compass Minerals International, Inc. | 66,879 | |||||||||
142 | Deltic Timber Corp. | 8,673 | |||||||||
13,348 | Golden Star Resources Ltd. (Canada)(a) | 20,422 | |||||||||
7,887 | Graphic Packaging Holding Co.(a) | 42,195 | |||||||||
265 | Hawkins, Inc. | 9,203 | |||||||||
283 | Haynes International, Inc. | 17,651 | |||||||||
2,152 | Horsehead Holding Corp.(a) | 24,167 | |||||||||
736 | Innophos Holdings, Inc. | 36,189 | |||||||||
979 | Kaiser Aluminum Corp. | 51,466 | |||||||||
973 | Koppers Holdings, Inc. | 37,830 | |||||||||
1,557 | Kraton Performance Polymers, Inc.(a) | 40,482 | |||||||||
424 | Kronos Worldwide, Inc. | 10,066 | |||||||||
1,214 | Materion Corp. | 29,998 | |||||||||
476 | Quaker Chemical Corp. | 20,658 | |||||||||
457 | Schweitzer-Mauduit International, Inc. | 30,994 | |||||||||
1,542 | Silgan Holdings, Inc. | 67,648 | |||||||||
344 | Stepan Co. | 31,256 | |||||||||
2,580 | Stillwater Mining Co.(a) | 27,683 | |||||||||
3,540 | SunCoke Energy, Inc.(a) | 53,879 | |||||||||
2,232 | Titanium Metals Corp. | 32,967 | |||||||||
1,048 | TPC Group, Inc.(a) | 43,995 | |||||||||
284 | Universal Stainless & Alloy Products, Inc.(a) | 13,178 | |||||||||
494 | Westlake Chemical Corp. | 31,591 | |||||||||
935 | Zep, Inc. | 13,324 | |||||||||
1,004,680 | |||||||||||
Telecommunication Services—0.9% | |||||||||||
397 | Atlantic Tele-Network, Inc. | 13,522 | |||||||||
1,984 | Cbeyond, Inc.(a) | 12,757 | |||||||||
15,188 | Cincinnati Bell, Inc.(a) | 57,715 | |||||||||
5,904 | Clearwire Corp., Class A(a) | 8,649 | |||||||||
5,052 | Leap Wireless International, Inc.(a) | 28,342 | |||||||||
1,365 | NTELOS Holdings Corp. | 27,600 | |||||||||
148,585 | |||||||||||
Utilities—1.9% | |||||||||||
4,258 | Aqua America, Inc. | 96,699 | |||||||||
236 | Artesian Resources Corp., Class A | 4,505 | |||||||||
3,468 | Atlantic Power Corp. (Canada) | 49,523 | |||||||||
393 | Chesapeake Utilities Corp. | 16,514 | |||||||||
2,277 | Cleco Corp. | 92,901 | |||||||||
317 | Connecticut Water Service, Inc. | 8,797 | |||||||||
665 | Ormat Technologies, Inc. | 13,147 |
See Notes to Financial Statements.
49
Schedule of Investments (Continued)
PowerShares Fundamental Pure Small Core Portfolio (PXSC)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
456 | Unitil Corp. | $ | 12,066 | ||||||||
378 | York Water Co. | 6,604 | |||||||||
300,756 | |||||||||||
Total Common Stocks and Other Equity Interests (Cost $15,448,293) | 15,727,156 | ||||||||||
Money Market Fund—0.6% | |||||||||||
90,674 | Goldman Sachs Financial Square Prime Obligations - Institutional Share Class (Cost $90,674) | 90,674 | |||||||||
Total Investments (Cost $15,538,967)—100.5% | 15,817,830 | ||||||||||
Liabilities in excess of other assets—(0.5%) | (82,783 | ) | |||||||||
Net Assets—100.0% | $ | 15,735,047 |
Investment Abbreviations:
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
(a) Non-income producing security.
See Notes to Financial Statements.
50
Schedule of Investments
PowerShares Fundamental Pure Small Growth Portfolio (PXSG)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.0% | |||||||||||
Consumer Discretionary—14.0% | |||||||||||
2,095 | AMC Networks, Inc., Class A(a) | $ | 89,038 | ||||||||
568 | American Public Education, Inc.(a) | 19,721 | |||||||||
666 | Amerigon, Inc.(a) | 9,524 | |||||||||
758 | Archipelago Learning, Inc.(a) | 8,391 | |||||||||
8,642 | Ascena Retail Group, Inc.(a) | 176,988 | |||||||||
3,075 | Bally Technologies, Inc.(a) | 149,291 | |||||||||
960 | BJ's Restaurants, Inc.(a) | 41,462 | |||||||||
992 | Black Diamond, Inc.(a) | 9,851 | |||||||||
538 | Body Central Corp.(a) | 16,339 | |||||||||
1,158 | Bravo Brio Restaurant Group, Inc.(a) | 23,392 | |||||||||
726 | Bridgepoint Education, Inc.(a) | 15,653 | |||||||||
705 | Buffalo Wild Wings, Inc.(a) | 59,114 | |||||||||
1,199 | Capella Education Co.(a) | 39,219 | |||||||||
3,459 | Carter's, Inc.(a) | 187,824 | |||||||||
2,155 | Coinstar, Inc.(a) | 135,312 | |||||||||
4,710 | Crocs, Inc.(a) | 95,142 | |||||||||
1,931 | Deckers Outdoor Corp.(a) | 98,500 | |||||||||
4,987 | DeVry, Inc. | 160,332 | |||||||||
828 | Dorman Products, Inc.(a) | 39,562 | |||||||||
2,151 | DSW, Inc., Class A | 121,015 | |||||||||
739 | Francesca's Holdings Corp.(a) | 23,168 | |||||||||
1,074 | Gordmans Stores, Inc.(a) | 22,812 | |||||||||
2,213 | Grand Canyon Education, Inc.(a) | 38,484 | |||||||||
1,278 | Hibbett Sports, Inc.(a) | 76,322 | |||||||||
7,516 | Iconix Brand Group, Inc.(a) | 115,295 | |||||||||
1,199 | iRobot Corp.(a) | 28,308 | |||||||||
2,163 | Jos. A. Bank Clothiers, Inc.(a) | 102,851 | |||||||||
1,320 | K12, Inc.(a) | 33,660 | |||||||||
3,250 | Life Time Fitness, Inc.(a) | 151,320 | |||||||||
8,256 | LKQ Corp.(a) | 276,163 | |||||||||
1,993 | Lumber Liquidators Holdings, Inc.(a) | 57,658 | |||||||||
4,895 | Madison Square Garden Co. (The), Class A(a) | 176,073 | |||||||||
1,325 | Monro Muffler Brake, Inc. | 54,670 | |||||||||
783 | Morningstar, Inc. | 45,195 | |||||||||
971 | Panera Bread Co., Class A(a) | 153,340 | |||||||||
578 | Peet's Coffee & Tea, Inc.(a) | 44,402 | |||||||||
1,634 | Rue21, Inc.(a) | 49,592 | |||||||||
4,699 | Scripps Networks Interactive, Inc., Class A | 235,984 | |||||||||
2,378 | Shuffle Master, Inc.(a) | 42,019 | |||||||||
1,244 | Shutterfly, Inc.(a) | 38,713 | |||||||||
4,215 | Sotheby's | 165,734 | |||||||||
1,429 | Steven Madden Ltd.(a) | 61,747 | |||||||||
574 | Sturm Ruger & Co., Inc. | 32,758 | |||||||||
1,381 | Tempur-Pedic International, Inc.(a) | 81,258 | |||||||||
230 | Tesla Motors, Inc.(a) | 7,620 | |||||||||
3,030 | TripAdvisor, Inc.(a) | 113,655 | |||||||||
1,972 | True Religion Apparel, Inc. | 53,560 | |||||||||
1,060 | Ulta Salon, Cosmetics & Fragrance, Inc. | 93,471 | |||||||||
852 | Under Armour, Inc., Class A(a) | 83,436 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
8,467 | Urban Outfitters, Inc.(a) | $ | 245,204 | ||||||||
502 | Vera Bradley, Inc.(a) | 13,042 | |||||||||
1,014 | Vitacost.Com, Inc.(a) | 8,497 | |||||||||
1,576 | Vitamin Shoppe, Inc.(a) | 74,182 | |||||||||
1,163 | Zumiez, Inc.(a) | 42,636 | |||||||||
4,338,499 | |||||||||||
Consumer Staples—1.7% | |||||||||||
321 | Boston Beer Co., Inc. (The), Class A(a) | 33,166 | |||||||||
364 | Chefs' Warehouse, Inc. (The)(a) | 8,802 | |||||||||
5,796 | Darling International, Inc.(a) | 94,938 | |||||||||
1,019 | Fresh Market, Inc. (The)(a) | 52,142 | |||||||||
1,030 | Medifast, Inc.(a) | 19,797 | |||||||||
737 | PriceSmart, Inc. | 60,832 | |||||||||
5,736 | Smart Balance, Inc.(a) | 33,842 | |||||||||
1,324 | Synutra International, Inc.(a) | 7,613 | |||||||||
3,445 | TreeHouse Foods, Inc.(a) | 198,122 | |||||||||
509,254 | |||||||||||
Energy—7.3% | |||||||||||
2,906 | Abraxas Petroleum Corp.(a) | 8,660 | |||||||||
2,770 | Amyris, Inc.(a) | 8,670 | |||||||||
166 | Apco Oil And Gas International, Inc. (Cayman Islands) | 6,964 | |||||||||
991 | Approach Resources, Inc.(a) | 35,557 | |||||||||
3,990 | Atwood Oceanics, Inc.(a) | 176,877 | |||||||||
522 | Bonanza Creek Energy, Inc.(a) | 11,468 | |||||||||
5,561 | BPZ Resources, Inc.(a) | 22,522 | |||||||||
756 | C&J Energy Services, Inc.(a) | 14,251 | |||||||||
820 | CARBO Ceramics, Inc. | 68,954 | |||||||||
2,201 | Carrizo Oil & Gas, Inc.(a) | 61,716 | |||||||||
1,385 | Clean Energy Fuels Corp.(a) | 26,647 | |||||||||
1,865 | Cobalt International Energy, Inc.(a) | 49,907 | |||||||||
736 | Contango Oil & Gas Co.(a) | 39,935 | |||||||||
599 | Continental Resources, Inc.(a) | 53,461 | |||||||||
5,356 | Dresser-Rand Group, Inc.(a) | 260,730 | |||||||||
1,729 | Dril-Quip, Inc.(a) | 116,517 | |||||||||
2,588 | Endeavour International Corp.(a) | 32,298 | |||||||||
648 | GeoResources, Inc.(a) | 24,436 | |||||||||
1,918 | Goodrich Petroleum Corp.(a) | 32,165 | |||||||||
1,007 | Gulfport Energy Corp.(a) | 26,393 | |||||||||
4,527 | Heckmann Corp.(a) | 17,203 | |||||||||
2,590 | Kodiak Oil & Gas Corp. (Canada)(a) | 22,921 | |||||||||
1,196 | Magnum Hunter Resources Corp.(a) | 7,427 | |||||||||
8,887 | McMoRan Exploration Co.(a) | 78,206 | |||||||||
4,740 | Miller Energy Resources, Inc.(a) | 25,738 | |||||||||
818 | Mitcham Industries, Inc.(a) | 19,436 | |||||||||
1,574 | Northern Oil And Gas, Inc.(a) | 30,583 | |||||||||
1,484 | Oasis Petroleum, Inc.(a) | 49,076 | |||||||||
209 | OYO Geospace Corp.(a) | 24,081 | |||||||||
24,237 | Patriot Coal Corp.(a) | 141,302 | |||||||||
5,836 | Rentech, Inc.(a) | 13,481 |
See Notes to Financial Statements.
51
Schedule of Investments (Continued)
PowerShares Fundamental Pure Small Growth Portfolio (PXSG)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
3,544 | Resolute Energy Corp.(a) | $ | 37,602 | ||||||||
2,369 | Rex Energy Corp.(a) | 24,898 | |||||||||
2,219 | Rosetta Resources, Inc.(a) | 111,549 | |||||||||
4,141 | RPC, Inc. | 42,818 | |||||||||
33,667 | SandRidge Energy, Inc.(a) | 268,999 | |||||||||
833 | TGC Industries, Inc.(a) | 9,505 | |||||||||
10,776 | Ultra Petroleum Corp.(a) | 212,934 | |||||||||
30,088 | Vantage Drilling Co. (Cayman Islands)(a) | 47,539 | |||||||||
424 | Voc Energy Trust | 9,544 | |||||||||
2,272,970 | |||||||||||
Financials—14.4% | |||||||||||
1,854 | 1st United Bancorp, Inc.(a) | 11,235 | |||||||||
75 | Alexander's, Inc. REIT | 29,222 | |||||||||
4,257 | American Campus Communities, Inc. REIT | 189,224 | |||||||||
1,872 | AmTrust Financial Services, Inc. | 50,993 | |||||||||
1,272 | ARMOUR Residential REIT, Inc. | 8,879 | |||||||||
1,671 | Bank of the Ozarks, Inc. | 51,634 | |||||||||
2,248 | Beneficial Mutual Bancorp, Inc.(a) | 19,490 | |||||||||
16,114 | BioMed Realty Trust, Inc. REIT | 319,380 | |||||||||
802 | BofI Holding, Inc.(a) | 14,252 | |||||||||
2,210 | Campus Crest Communities, Inc. REIT | 25,747 | |||||||||
1,052 | Chatham Lodging Trust REIT | 13,676 | |||||||||
1,272 | Colony Financial, Inc. REIT | 21,611 | |||||||||
1,022 | Coresite Realty Corp. REIT | 25,458 | |||||||||
266 | Credit Acceptance Corp.(a) | 25,012 | |||||||||
2,172 | CreXus Investment Corp. REIT | 22,784 | |||||||||
4,610 | DFC Global Corp.(a) | 80,583 | |||||||||
206 | Diamond Hill Investment Group, Inc.(a) | 15,633 | |||||||||
1,977 | Duff & Phelps Corp., Class A | 31,434 | |||||||||
3,459 | DuPont Fabros Technology, Inc. REIT | 93,912 | |||||||||
1,112 | Eagle Bancorp, Inc.(a) | 19,783 | |||||||||
1,607 | eHealth, Inc.(a) | 28,476 | |||||||||
326 | Epoch Holding Corp. | 8,802 | |||||||||
1,263 | Equity Lifestyle Properties, Inc. REIT | 88,334 | |||||||||
1,120 | Evercore Partners, Inc., Class A | 29,602 | |||||||||
1,174 | Excel Trust, Inc. REIT | 14,076 | |||||||||
5,832 | Extra Space Storage, Inc. REIT | 177,001 | |||||||||
2,767 | EZCORP, Inc., Class A(a) | 74,128 | |||||||||
938 | Financial Engines, Inc.(a) | 21,424 | |||||||||
1,315 | First Cash Financial Services, Inc.(a) | 53,862 | |||||||||
1,112 | First Connecticut Bancorp, Inc. | 14,667 | |||||||||
798 | Fox Chase Bancorp, Inc. | 10,151 | |||||||||
658 | Franklin Financial Corp.(a) | 9,462 | |||||||||
2,469 | Government Properties Income Trust REIT | 57,330 | |||||||||
687 | Green Dot Corp., Class A(a) | 18,130 | |||||||||
8,240 | Hatteras Financial Corp. REIT | 240,031 | |||||||||
4,868 | Hercules Technology Growth Capital, Inc. | 55,544 | |||||||||
17,364 | Hersha Hospitality Trust REIT | 99,843 | |||||||||
1,576 | Home BancShares, Inc. | 45,925 | |||||||||
1,566 | Hudson Pacific Properties, Inc. REIT | 24,790 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
2,510 | ICG Group, Inc.(a) | $ | 23,795 | ||||||||
1,163 | INTL FCStone, Inc.(a) | 25,005 | |||||||||
6,725 | Invesco Mortgage Capital, Inc. REIT(b) | 118,629 | |||||||||
2,816 | Investors Bancorp, Inc.(a) | 43,479 | |||||||||
1,242 | Kennedy-Wilson Holdings, Inc. | 17,463 | |||||||||
608 | MarketAxess Holdings, Inc. | 20,861 | |||||||||
12,209 | Medical Properties Trust, Inc. REIT | 114,520 | |||||||||
408 | Meridian Interstate Bancorp, Inc.(a) | 5,467 | |||||||||
8,272 | National Retail Properties, Inc. REIT | 226,487 | |||||||||
1,454 | Netspend Holdings, Inc.(a) | 11,094 | |||||||||
2,226 | NewStar Financial, Inc.(a) | 26,423 | |||||||||
962 | Northfield Bancorp, Inc. | 13,430 | |||||||||
8,600 | OMEGA Healthcare Investors, Inc. REIT | 184,126 | |||||||||
3,237 | Oritani Financial Corp. | 47,972 | |||||||||
2,818 | Pebblebrook Hotel Trust REIT | 67,857 | |||||||||
4,088 | Pinnacle Financial Partners, Inc.(a) | 74,810 | |||||||||
3,873 | Prosperity Bancshares, Inc. | 180,675 | |||||||||
1,454 | Safeguard Scientifics, Inc.(a) | 23,787 | |||||||||
13,749 | Senior Housing Properties Trust REIT | 303,578 | |||||||||
2,251 | Signature Bank(a) | 147,868 | |||||||||
3,364 | SVB Financial Group(a) | 215,599 | |||||||||
4,612 | Tanger Factory Outlet Centers, Inc. REIT | 144,448 | |||||||||
742 | Tejon Ranch Co.(a) | 22,156 | |||||||||
810 | Territorial Bancorp, Inc. | 17,593 | |||||||||
2,293 | Texas Capital Bancshares, Inc.(a) | 86,469 | |||||||||
3,431 | Two Harbors Investment Corp. REIT | 35,888 | |||||||||
2,232 | ViewPoint Financial Group | 35,511 | |||||||||
138 | Virtus Investment Partners, Inc.(a) | 11,647 | |||||||||
870 | Walker & Dunlop, Inc.(a) | 11,354 | |||||||||
2,626 | Walter Investment Management Corp. | 53,124 | |||||||||
349 | Westwood Holdings Group, Inc. | 12,836 | |||||||||
4,465,471 | |||||||||||
Health Care—16.7% | |||||||||||
939 | Abaxis, Inc.(a) | 33,447 | |||||||||
500 | ABIOMED, Inc.(a) | 12,165 | |||||||||
894 | Accretive Health, Inc.(a) | 8,994 | |||||||||
3,175 | Accuray, Inc.(a) | 24,447 | |||||||||
628 | Acorda Therapeutics, Inc.(a) | 15,851 | |||||||||
826 | Affymax, Inc.(a) | 10,829 | |||||||||
624 | Air Methods Corp.(a) | 52,485 | |||||||||
644 | Akorn, Inc.(a) | 7,812 | |||||||||
1,698 | Align Technology, Inc.(a) | 53,844 | |||||||||
7,684 | Allscripts Healthcare Solutions, Inc.(a) | 85,139 | |||||||||
1,082 | Alnylam Pharmaceuticals, Inc.(a) | 12,324 | |||||||||
5,262 | Alphatec Holdings, Inc.(a) | 11,471 | |||||||||
1,267 | AMAG Pharmaceuticals, Inc.(a) | 19,841 | |||||||||
4,020 | Amylin Pharmaceuticals, Inc.(a) | 104,158 | |||||||||
476 | Ariad Pharmaceuticals, Inc.(a) | 7,759 | |||||||||
2,089 | Arthrocare Corp.(a) | 52,141 | |||||||||
6,118 | Astex Pharmaceuticals(a) | 10,768 |
See Notes to Financial Statements.
52
Schedule of Investments (Continued)
PowerShares Fundamental Pure Small Growth Portfolio (PXSG)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
352 | athenahealth, Inc.(a) | $ | 25,502 | ||||||||
86 | Atrion Corp. | 19,835 | |||||||||
726 | Auxilium Pharmaceuticals, Inc.(a) | 13,010 | |||||||||
1,370 | BioCryst Pharmaceuticals, Inc.(a) | 4,959 | |||||||||
2,174 | BioMarin Pharmaceutical, Inc.(a) | 75,438 | |||||||||
1,592 | Bio-Reference Labs, Inc.(a) | 33,941 | |||||||||
3,721 | Bruker Corp.(a) | 55,927 | |||||||||
1,764 | Cadence Pharmaceuticals, Inc. (a) | 6,509 | |||||||||
1,120 | Cantel Medical Corp. | 26,298 | |||||||||
3,156 | Catalyst Health Solutions, Inc.(a) | 272,584 | |||||||||
1,748 | Celldex Therapeutics, Inc.(a) | 7,971 | |||||||||
5,658 | Centene Corp.(a) | 224,000 | |||||||||
482 | Cepheid, Inc.(a) | 18,514 | |||||||||
1,476 | Chindex International, Inc.(a) | 14,421 | |||||||||
2,188 | Codexis, Inc.(a) | 7,921 | |||||||||
1,310 | Conceptus, Inc.(a) | 24,589 | |||||||||
2,549 | Cubist Pharmaceuticals, Inc.(a) | 107,772 | |||||||||
652 | Cyberonics, Inc.(a) | 24,972 | |||||||||
4,058 | Dendreon Corp.(a) | 47,276 | |||||||||
2,708 | Emergent Biosolutions, Inc.(a) | 38,074 | |||||||||
658 | Endologix, Inc.(a) | 9,857 | |||||||||
1,444 | Ensign Group, Inc. (The) | 38,569 | |||||||||
734 | Exact Sciences Corp.(a) | 7,905 | |||||||||
1,362 | ExamWorks Group, Inc.(a) | 15,854 | |||||||||
228 | Genomic Health, Inc.(a) | 6,534 | |||||||||
2,067 | Gen-Probe, Inc.(a) | 168,564 | |||||||||
332 | HealthStream, Inc.(a) | 7,609 | |||||||||
175 | HeartWare International, Inc.(a) | 13,643 | |||||||||
552 | Hi-Tech Pharmacal Co., Inc.(a) | 17,990 | |||||||||
1,621 | HMS Holdings Corp.(a) | 39,001 | |||||||||
7,086 | Human Genome Sciences, Inc.(a) | 104,235 | |||||||||
924 | ICU Medical, Inc.(a) | 48,501 | |||||||||
1,887 | IDEXX Laboratories, Inc.(a) | 165,924 | |||||||||
756 | Immunogen, Inc.(a) | 9,639 | |||||||||
4,368 | Impax Laboratories, Inc.(a) | 107,584 | |||||||||
370 | Insulet Corp.(a) | 6,608 | |||||||||
1,264 | InterMune, Inc.(a) | 13,196 | |||||||||
1,006 | IPC The Hospitalist Co., Inc.(a) | 38,640 | |||||||||
606 | Ironwood Pharmaceuticals, Inc.(a) | 8,005 | |||||||||
2,840 | Isis Pharmaceuticals, Inc.(a) | 22,720 | |||||||||
5,488 | Lexicon Pharmaceuticals, Inc.(a) | 8,891 | |||||||||
1,113 | Luminex Corp.(a) | 27,869 | |||||||||
241 | MAKO Surgical Corp.(a) | 9,956 | |||||||||
3,788 | Masimo Corp.(a) | 83,828 | |||||||||
4,486 | MedAssets, Inc.(a) | 56,568 | |||||||||
2,324 | Medicines Co. (The)(a) | 51,337 | |||||||||
3,035 | Medicis Pharmaceutical Corp., Class A | 116,756 | |||||||||
446 | Medidata Solutions, Inc.(a) | 11,556 | |||||||||
3,497 | MEDNAX, Inc.(a) | 245,629 | |||||||||
2,772 | Meridian Bioscience, Inc. | 56,965 | |||||||||
3,210 | Merit Medical Systems, Inc.(a) | 42,436 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
2,740 | Metropolitan Health Networks, Inc.(a) | $ | 20,495 | ||||||||
1,128 | Momenta Pharmaceuticals, Inc.(a) | 17,913 | |||||||||
834 | MWI Veterinary Supply, Inc.(a) | 78,730 | |||||||||
3,035 | Myriad Genetics, Inc.(a) | 78,940 | |||||||||
3,547 | Natus Medical, Inc.(a) | 43,415 | |||||||||
2,096 | Nektar Therapeutics(a) | 15,971 | |||||||||
816 | Neogen Corp.(a) | 31,816 | |||||||||
3,516 | NuVasive, Inc.(a) | 58,260 | |||||||||
886 | NxStage Medical, Inc.(a) | 15,062 | |||||||||
2,597 | Omnicell, Inc.(a) | 37,059 | |||||||||
1,761 | Onyx Pharmaceuticals, Inc.(a) | 80,143 | |||||||||
4,520 | Pacific Biosciences of California, Inc.(a) | 12,204 | |||||||||
2,558 | Pain Therapeutics, Inc.(a) | 10,360 | |||||||||
3,313 | Par Pharmaceutical Cos., Inc.(a) | 140,272 | |||||||||
4,961 | PAREXEL International Corp.(a) | 133,649 | |||||||||
1,462 | Quality Systems, Inc. | 54,679 | |||||||||
544 | Questcor Pharmaceuticals, Inc.(a) | 24,426 | |||||||||
7,193 | ResMed, Inc.(a) | 244,634 | |||||||||
1,764 | Rigel Pharmaceuticals, Inc.(a) | 13,636 | |||||||||
949 | Salix Pharmaceuticals Ltd.(a) | 46,881 | |||||||||
1,492 | Santarus, Inc.(a) | 9,504 | |||||||||
1,506 | Sciclone Pharmaceuticals, Inc.(a) | 9,021 | |||||||||
870 | Seattle Genetics, Inc.(a) | 17,200 | |||||||||
3,422 | Sequenom, Inc.(a) | 17,521 | |||||||||
3,086 | Sirona Dental Systems, Inc.(a) | 155,874 | |||||||||
3,164 | Solta Medical, Inc.(a) | 10,283 | |||||||||
1,462 | Spectranetics Corp.(a) | 15,336 | |||||||||
522 | Spectrum Pharmaceuticals, Inc.(a) | 5,549 | |||||||||
1,476 | SXC Health Solutions Corp. (Canada)(a) | 133,696 | |||||||||
337 | Synageva Biopharma Corp.(a) | 12,799 | |||||||||
1,074 | Targacept, Inc.(a) | 5,101 | |||||||||
2,384 | Team Health Holdings, Inc.(a) | 51,351 | |||||||||
1,385 | Techne Corp. | 92,712 | |||||||||
2,459 | Thoratec Corp.(a) | 85,598 | |||||||||
1,951 | United Therapeutics Corp.(a) | 85,356 | |||||||||
788 | Vascular Solutions, Inc.(a) | 8,944 | |||||||||
4,377 | ViroPharma, Inc.(a) | 95,200 | |||||||||
614 | VIVUS, Inc.(a) | 14,871 | |||||||||
1,497 | Volcano Corp.(a) | 40,644 | |||||||||
5,160,462 | |||||||||||
Industrials—12.4% | |||||||||||
19,828 | A123 Systems, Inc.(a) | 20,225 | |||||||||
568 | Acacia Research Corp.(a) | 23,288 | |||||||||
424 | Advisory Board Co. (The)(a) | 38,652 | |||||||||
1,218 | Aerovironment, Inc.(a) | 29,622 | |||||||||
1,014 | Allegiant Travel Co.(a) | 59,583 | |||||||||
1,036 | Ameresco, Inc., Class A(a) | 12,629 | |||||||||
500 | Argan, Inc. | 7,290 | |||||||||
522 | Astronics Corp.(a) | 16,574 | |||||||||
955 | AZZ, Inc. | 49,383 |
See Notes to Financial Statements.
53
Schedule of Investments (Continued)
PowerShares Fundamental Pure Small Growth Portfolio (PXSG)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
1,461 | Chart Industries, Inc.(a) | $ | 111,664 | ||||||||
2,274 | Clean Harbors, Inc.(a) | 155,178 | |||||||||
1,726 | Colfax Corp.(a) | 58,494 | |||||||||
6,794 | Copart, Inc.(a) | 179,430 | |||||||||
861 | DXP Enterprises, Inc.(a) | 37,342 | |||||||||
712 | Echo Global Logistics, Inc.(a) | 12,125 | |||||||||
2,696 | EnerNOC, Inc.(a) | 16,203 | |||||||||
773 | Exponent, Inc.(a) | 36,949 | |||||||||
4,276 | Furmanite Corp.(a) | 26,768 | |||||||||
3,119 | Gardner Denver, Inc. | 203,172 | |||||||||
2,211 | Genesee & Wyoming, Inc., Class A(a) | 119,195 | |||||||||
530 | Graham Corp. | 11,702 | |||||||||
1,456 | HEICO Corp. | 58,706 | |||||||||
2,180 | Huron Consulting Group, Inc.(a) | 76,823 | |||||||||
686 | IHS, Inc., Class A(a) | 69,334 | |||||||||
2,623 | II-VI, Inc.(a) | 53,535 | |||||||||
2,511 | InnerWorkings, Inc.(a) | 28,902 | |||||||||
1,704 | KEYW Holding Corp. (The)(a) | 16,018 | |||||||||
3,228 | Kirby Corp.(a) | 214,242 | |||||||||
665 | Lindsay Corp. | 44,415 | |||||||||
6,799 | MasTec, Inc.(a) | 118,235 | |||||||||
1,003 | Middleby Corp. (The)(a) | 101,774 | |||||||||
826 | Mistras Group, Inc.(a) | 19,386 | |||||||||
2,835 | Nielsen Holdings NV (Netherlands)(a) | 82,839 | |||||||||
614 | PMFG, Inc.(a) | 8,295 | |||||||||
2,910 | Polypore International, Inc.(a) | 108,688 | |||||||||
969 | Portfolio Recovery Associates, Inc.(a) | 66,687 | |||||||||
1,536 | Primoris Services Corp. | 22,149 | |||||||||
909 | Raven Industries, Inc. | 54,731 | |||||||||
1,390 | RBC Bearings, Inc.(a) | 65,163 | |||||||||
1,606 | Roadrunner Transportation Systems, Inc.(a) | 27,864 | |||||||||
2,820 | Rollins, Inc. | 59,925 | |||||||||
2,083 | Spirit Airlines, Inc.(a) | 50,034 | |||||||||
891 | Sun Hydraulics Corp. | 22,302 | |||||||||
1,699 | Team, Inc.(a) | 50,341 | |||||||||
2,045 | Titan Machinery, Inc.(a) | 72,863 | |||||||||
3,171 | Towers Watson & Co., Class A | 207,383 | |||||||||
3,362 | Triumph Group, Inc. | 211,201 | |||||||||
1,500 | Valmont Industries, Inc. | 185,895 | |||||||||
2,059 | Wabtec Corp. | 160,149 | |||||||||
5,897 | Waste Connections, Inc. | 190,060 | |||||||||
3,558 | WESCO Aircraft Holdings, Inc.(a) | 56,181 | |||||||||
2,407 | Woodward, Inc. | 100,107 | |||||||||
3,829,695 | |||||||||||
Information Technology—23.7% | |||||||||||
750 | 3D Systems Corp.(a) | 22,118 | |||||||||
1,514 | Accelrys, Inc.(a) | 12,460 | |||||||||
1,366 | Acme Packet, Inc.(a) | 38,344 | |||||||||
1,669 | Advent Software, Inc.(a) | 45,046 | |||||||||
11,530 | ANADIGICS, Inc.(a) | 25,481 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
1,718 | Ancestry.com, Inc.(a) | $ | 45,871 | ||||||||
1,879 | Ariba, Inc.(a) | 71,778 | |||||||||
873 | Aruba Networks, Inc.(a) | 18,438 | |||||||||
1,636 | Aspen Technology, Inc.(a) | 32,360 | |||||||||
2,680 | AXT, Inc.(a) | 13,641 | |||||||||
1,272 | Bankrate, Inc.(a) | 29,790 | |||||||||
1,848 | Blackbaud, Inc. | 57,251 | |||||||||
925 | Bottomline Technologies, Inc.(a) | 21,765 | |||||||||
1,794 | Calix, Inc.(a) | 14,280 | |||||||||
1,810 | Cardtronics, Inc.(a) | 47,712 | |||||||||
788 | Cavium, Inc.(a) | 23,057 | |||||||||
666 | CEVA, Inc.(a) | 14,712 | |||||||||
3,871 | Ciena Corp.(a) | 57,368 | |||||||||
2,343 | Cirrus Logic, Inc.(a) | 64,151 | |||||||||
655 | CommVault Systems, Inc.(a) | 34,106 | |||||||||
1,027 | comScore, Inc.(a) | 20,458 | |||||||||
1,029 | Concur Technologies, Inc.(a) | 58,200 | |||||||||
513 | Constant Contact, Inc.(a) | 12,399 | |||||||||
849 | CoStar Group, Inc.(a) | 61,884 | |||||||||
3,854 | Cray, Inc.(a) | 42,972 | |||||||||
8,292 | Cree, Inc.(a) | 256,223 | |||||||||
1,468 | Datalink Corp.(a) | 14,944 | |||||||||
1,963 | DealerTrack Holdings, Inc.(a) | 58,556 | |||||||||
1,006 | Deltek, Inc.(a) | 10,503 | |||||||||
1,180 | Demand Media, Inc.(a) | 9,806 | |||||||||
2,721 | Dice Holdings, Inc.(a) | 29,332 | |||||||||
3,321 | Diodes, Inc.(a) | 74,025 | |||||||||
3,016 | Dolby Laboratories, Inc., Class A(a) | 118,318 | |||||||||
789 | DTS, Inc.(a) | 24,617 | |||||||||
1,177 | Ebix, Inc. | 24,070 | |||||||||
4,283 | Entropic Communications, Inc.(a) | 18,117 | |||||||||
788 | Envestnet, Inc.(a) | 9,858 | |||||||||
1,038 | ExlService Holdings, Inc.(a) | 28,732 | |||||||||
1,493 | FactSet Research Systems, Inc. | 156,556 | |||||||||
580 | FARO Technologies, Inc.(a) | 32,468 | |||||||||
2,290 | FEI Co.(a) | 114,889 | |||||||||
5,603 | Finisar Corp.(a) | 92,562 | |||||||||
756 | FleetCor Technologies, Inc.(a) | 29,900 | |||||||||
10,264 | FLIR Systems, Inc. | 230,529 | |||||||||
1,063 | Fortinet, Inc.(a) | 27,766 | |||||||||
3,075 | Gartner, Inc.(a) | 134,685 | |||||||||
1,621 | Globecomm Systems, Inc.(a) | 22,986 | |||||||||
11,522 | GT Advanced Technologies, Inc.(a) | 75,008 | |||||||||
11,751 | Harmonic, Inc.(a) | 55,465 | |||||||||
590 | Higher One Holdings, Inc.(a) | 9,304 | |||||||||
1,059 | Hittite Microwave Corp.(a) | 56,699 | |||||||||
1,251 | iGATE Corp.(a) | 24,344 | |||||||||
5,894 | Infinera Corp.(a) | 42,201 | |||||||||
1,045 | Informatica Corp.(a) | 48,091 | |||||||||
674 | Inphi Corp.(a) | 6,841 | |||||||||
1,234 | Integrated Silicon Solution, Inc.(a) | 13,105 |
See Notes to Financial Statements.
54
Schedule of Investments (Continued)
PowerShares Fundamental Pure Small Growth Portfolio (PXSG)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
458 | Interactive Intelligence Group(a) | $ | 13,584 | ||||||||
1,919 | InterDigital, Inc. | 53,195 | |||||||||
8,577 | IntraLinks Holdings, Inc.(a) | 39,969 | |||||||||
615 | IPG Photonics Corp.(a) | 29,766 | |||||||||
2,264 | IXYS Corp.(a) | 28,209 | |||||||||
2,490 | j2 Global, Inc. | 64,317 | |||||||||
3,831 | JDA Software Group, Inc.(a) | 110,639 | |||||||||
12,302 | JDS Uniphase Corp.(a) | 149,469 | |||||||||
856 | Kenexa Corp.(a) | 27,966 | |||||||||
2,180 | KIT Digital, Inc.(a) | 14,780 | |||||||||
5,382 | Kulicke & Soffa Industries, Inc.(a) | 70,504 | |||||||||
7,131 | Lattice Semiconductor Corp.(a) | 38,935 | |||||||||
4,472 | Limelight Networks, Inc.(a) | 12,253 | |||||||||
448 | Liquidity Services, Inc.(a) | 23,892 | |||||||||
1,200 | Littelfuse, Inc. | 75,204 | |||||||||
864 | LivePerson, Inc.(a) | 13,720 | |||||||||
393 | LogMeIn, Inc.(a) | 14,152 | |||||||||
682 | Loral Space & Communications, Inc. | 42,318 | |||||||||
3,770 | LTX-Credence Corp.(a) | 26,013 | |||||||||
590 | Maxwell Technologies, Inc.(a) | 5,611 | |||||||||
1,111 | Measurement Specialties, Inc.(a) | 39,696 | |||||||||
2,893 | MICROS Systems, Inc.(a) | 164,409 | |||||||||
5,330 | Microsemi Corp.(a) | 114,702 | |||||||||
2,120 | Mindspeed Technologies, Inc.(a) | 10,621 | |||||||||
1,370 | MIPS Technologies, Inc.(a) | 8,960 | |||||||||
1,963 | Monolithic Power Systems, Inc.(a) | 40,673 | |||||||||
2,126 | Monotype Imaging Holdings, Inc.(a) | 30,168 | |||||||||
1,167 | Nanometrics, Inc.(a) | 18,100 | |||||||||
4,721 | National Instruments Corp. | 128,411 | |||||||||
2,564 | NETGEAR, Inc.(a) | 98,714 | |||||||||
1,988 | NetScout Systems, Inc.(a) | 41,132 | |||||||||
3,557 | NeuStar, Inc., Class A(a) | 129,297 | |||||||||
2,774 | NIC, Inc. | 31,041 | |||||||||
194 | NVE Corp.(a) | 9,832 | |||||||||
7,621 | Oclaro, Inc.(a) | 21,872 | |||||||||
818 | OCZ Technology Group, Inc.(a) | 4,826 | |||||||||
266 | OpenTable, Inc.(a) | 11,898 | |||||||||
1,594 | Oplink Communications, Inc.(a) | 25,249 | |||||||||
594 | OPNET Technologies, Inc. | 13,757 | |||||||||
997 | OSI Systems, Inc.(a) | 66,659 | |||||||||
5,744 | Parametric Technology Corp.(a) | 123,956 | |||||||||
384 | Pegasystems, Inc. | 14,281 | |||||||||
20,075 | PMC - Sierra, Inc.(a) | 141,930 | |||||||||
10,079 | Polycom, Inc.(a) | 133,748 | |||||||||
1,139 | Power Integrations, Inc. | 43,145 | |||||||||
432 | PROS Holdings, Inc.(a) | 8,506 | |||||||||
756 | QLIK Technologies, Inc.(a) | 21,780 | |||||||||
3,315 | QuinStreet, Inc.(a) | 34,841 | |||||||||
1,551 | Rackspace Hosting, Inc.(a) | 90,098 | |||||||||
6,154 | Rambus, Inc.(a) | 31,324 | |||||||||
1,120 | RealD, Inc.(a) | 13,530 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
606 | RealPage, Inc.(a) | $ | 10,999 | ||||||||
2,324 | Riverbed Technology, Inc.(a) | 45,853 | |||||||||
5,916 | Rovi Corp.(a) | 169,198 | |||||||||
1,748 | Rubicon Technology, Inc.(a) | 16,519 | |||||||||
2,514 | Rudolph Technologies, Inc.(a) | 27,151 | |||||||||
742 | Saba Software, Inc.(a) | 7,212 | |||||||||
6,121 | Sapient Corp. | 73,268 | |||||||||
2,824 | Semtech Corp.(a) | 76,982 | |||||||||
492 | ServiceSource International, Inc.(a) | 8,157 | |||||||||
2,256 | ShoreTel, Inc.(a) | 10,806 | |||||||||
2,979 | Silicon Graphics International Corp.(a) | 28,122 | |||||||||
7,134 | Skyworks Solutions, Inc.(a) | 193,617 | |||||||||
690 | SolarWinds, Inc.(a) | 32,368 | |||||||||
1,953 | Solera Holdings, Inc. | 87,768 | |||||||||
368 | Sourcefire, Inc.(a) | 18,764 | |||||||||
3,468 | SS&C Technologies Holdings, Inc.(a) | 82,434 | |||||||||
334 | Stamps.com, Inc.(a) | 9,696 | |||||||||
678 | Stratasys, Inc.(a) | 34,720 | |||||||||
2,317 | Super Micro Computer, Inc.(a) | 40,895 | |||||||||
1,529 | Synaptics, Inc.(a) | 46,956 | |||||||||
881 | Synchronoss Technologies, Inc.(a) | 27,575 | |||||||||
838 | Syntel, Inc. | 50,188 | |||||||||
1,786 | TeleNav, Inc.(a) | 12,091 | |||||||||
6,776 | Tessera Technologies, Inc. | 105,977 | |||||||||
4,454 | TIBCO Software, Inc.(a) | 146,537 | |||||||||
2,334 | TiVo, Inc.(a) | 25,184 | |||||||||
288 | Travelzoo, Inc.(a) | 7,476 | |||||||||
877 | Tyler Technologies, Inc.(a) | 35,036 | |||||||||
247 | Ultimate Software Group, Inc. (The)(a) | 19,059 | |||||||||
291 | Ultratech, Inc.(a) | 9,295 | |||||||||
1,854 | VASCO Data Security International, Inc.(a) | 14,443 | |||||||||
1,770 | VeriFone Systems, Inc.(a) | 84,323 | |||||||||
1,108 | Verint Systems, Inc.(a) | 33,506 | |||||||||
2,570 | ViaSat, Inc.(a) | 124,131 | |||||||||
1,650 | Virtusa Corp.(a) | 24,899 | |||||||||
938 | Vocus, Inc.(a) | 12,128 | |||||||||
646 | Volterra Semiconductor Corp.(a) | 21,247 | |||||||||
794 | Web.com Group, Inc.(a) | 10,282 | |||||||||
3,832 | WebMD Health Corp.(a) | 87,178 | |||||||||
1,955 | Websense, Inc.(a) | 40,547 | |||||||||
1,829 | Wright Express Corp.(a) | 116,727 | |||||||||
2,677 | XO Group, Inc.(a) | 24,816 | |||||||||
7,311,924 | |||||||||||
Materials—6.4% | |||||||||||
1,242 | Allied Nevada Gold Corp.(a) | 36,378 | |||||||||
1,169 | Balchem Corp. | 33,784 | |||||||||
8,164 | Coeur d'Alene Mines Corp.(a) | 175,934 | |||||||||
1,136 | Flotek Industries, Inc.(a) | 15,495 | |||||||||
1,136 | Futurefuel Corp. | 11,178 | |||||||||
2,536 | General Moly, Inc.(a) | 8,217 |
See Notes to Financial Statements.
55
Schedule of Investments (Continued)
PowerShares Fundamental Pure Small Growth Portfolio (PXSG)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
3,248 | Globe Specialty Metals, Inc. | $ | 43,328 | ||||||||
1,408 | Golden Minerals Co.(a) | 10,518 | |||||||||
25,376 | Hecla Mining Co. | 108,609 | |||||||||
3,305 | Intrepid Potash, Inc.(a) | 82,129 | |||||||||
5,632 | Jaguar Mining, Inc. (Canada)(a) | 15,263 | |||||||||
3,660 | KapStone Paper and Packaging Corp.(a) | 66,100 | |||||||||
666 | KMG Chemicals, Inc. | 11,482 | |||||||||
1,369 | LSB Industries, Inc.(a) | 46,436 | |||||||||
991 | Molycorp, Inc.(a) | 26,816 | |||||||||
698 | NewMarket Corp. | 155,808 | |||||||||
3,778 | Rock-Tenn Co., Class A | 235,483 | |||||||||
1,677 | Royal Gold, Inc. | 103,907 | |||||||||
8,741 | Solutia, Inc. | 247,720 | |||||||||
146 | United States Lime & Minerals, Inc.(a) | 7,004 | |||||||||
2,218 | Vista Gold Corp. (Canada)(a) | 6,698 | |||||||||
4,341 | W.R. Grace & Co.(a) | 258,767 | |||||||||
3,547 | Walter Energy, Inc. | 235,202 | |||||||||
2,738 | Zoltek Cos., Inc.(a) | 30,200 | |||||||||
1,972,456 | |||||||||||
Telecommunication Services—2.6% | |||||||||||
1,416 | AboveNet, Inc.(a) | 117,769 | |||||||||
1,830 | Cogent Communications Group, Inc.(a) | 34,276 | |||||||||
5,686 | Iridium Communications, Inc.(a) | 49,980 | |||||||||
12,086 | Level 3 Communications, Inc.(a) | 278,703 | |||||||||
3,785 | Neutral Tandem, Inc.(a) | 43,982 | |||||||||
2,914 | ORBCOMM, Inc.(a) | 9,499 | |||||||||
11,220 | tw telecom, inc.(a) | 244,371 | |||||||||
13,322 | Vonage Holdings Corp.(a) | 27,177 | |||||||||
805,757 | |||||||||||
Utilities—0.8% | |||||||||||
3,130 | ITC Holdings Corp. | 242,450 | |||||||||
Total Common Stocks and Other Equity Interests (Cost $31,148,686) | 30,908,938 | ||||||||||
Money Market Fund—0.2% | |||||||||||
79,170 | Goldman Sachs Financial Square Prime Obligations - Institutional Share Class (Cost $79,170) | 79,170 | |||||||||
Total Investments (Cost $31,227,856)—100.2% | 30,988,108 | ||||||||||
Liabilities in excess of other assets—(0.2%) | (75,457 | ) | |||||||||
Net Assets—100.0% | $ | 30,912,651 |
Investment Abbreviations:
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) Affiliated company. The Fund's Adviser is a subsidiary of Invesco Ltd. and therefore, Invesco Mortgage Capital, Inc. REIT is considered to be affiliated with the Fund. See Note 4.
See Notes to Financial Statements.
56
Schedule of Investments
PowerShares Fundamental Pure Small Value Portfolio (PXSV)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.0% | |||||||||||
Consumer Discretionary—20.5% | |||||||||||
5,745 | 1-800-FLOWERS.COM, Inc., Class A(a) | $ | 17,120 | ||||||||
6,058 | American Axle & Manufacturing Holdings, Inc.(a) | 58,702 | |||||||||
7,418 | American Greetings Corp., Class A(b) | 118,688 | |||||||||
5,572 | Ameristar Casinos, Inc. | 100,185 | |||||||||
5,388 | ANN, Inc.(a) | 149,194 | |||||||||
1,100 | Arbitron, Inc. | 41,855 | |||||||||
478 | Arctic Cat, Inc.(a) | 21,147 | |||||||||
4,780 | Asbury Automotive Group, Inc.(a) | 133,458 | |||||||||
878 | Ascent Capital Group, Inc., Class A(a) | 45,217 | |||||||||
13,388 | Barnes & Noble, Inc.(a)(b) | 277,801 | |||||||||
28,960 | Beazer Homes USA, Inc.(a) | 89,776 | |||||||||
3,810 | Bebe Stores, Inc. | 31,242 | |||||||||
13,437 | Belo Corp., Class A | 90,565 | |||||||||
1,355 | Benihana, Inc. | 18,685 | |||||||||
5,584 | Big 5 Sporting Goods Corp. | 46,738 | |||||||||
102 | Biglari Holdings, Inc.(a) | 41,446 | |||||||||
595 | Blyth, Inc. | 52,342 | |||||||||
3,177 | Bob Evans Farms, Inc. | 121,488 | |||||||||
16,474 | Boyd Gaming Corp.(a) | 126,685 | |||||||||
11,636 | Brown Shoe Co., Inc. | 106,004 | |||||||||
7,531 | Brunswick Corp. | 197,990 | |||||||||
11,135 | Callaway Golf Co. | 68,258 | |||||||||
17,300 | Career Education Corp.(a) | 123,349 | |||||||||
2,248 | Carrols Restaurant Group, Inc.(a) | 33,900 | |||||||||
6,660 | Casual Male Retail Group, Inc.(a) | 20,912 | |||||||||
2,432 | Cato Corp. (The), Class A | 67,683 | |||||||||
1,870 | CEC Entertainment, Inc. | 71,471 | |||||||||
21,369 | Charming Shoppes, Inc.(a) | 126,077 | |||||||||
3,682 | Cheesecake Factory, Inc. (The)(a) | 115,983 | |||||||||
8,405 | Chico's FAS, Inc. | 129,101 | |||||||||
2,481 | Children's Place Retail Stores, Inc. (The)(a) | 114,076 | |||||||||
3,289 | Clear Channel Outdoor Holdings, Inc., Class A | 24,898 | |||||||||
11,624 | Collective Brands, Inc.(a) | 241,430 | |||||||||
985 | Columbia Sportswear Co. | 46,393 | |||||||||
2,091 | Conn's, Inc.(a) | 34,188 | |||||||||
9,266 | Cooper Tire & Rubber Co. | 138,527 | |||||||||
23,187 | Corinthian Colleges, Inc.(a) | 89,038 | |||||||||
2,558 | Cost Plus, Inc.(a) | 49,548 | |||||||||
1,833 | Cracker Barrel Old Country Store, Inc. | 105,434 | |||||||||
1,250 | CSS Industries, Inc. | 23,938 | |||||||||
2,753 | Cumulus Media, Inc., Class A(a)(b) | 9,993 | |||||||||
10,516 | Denny's Corp.(a) | 43,536 | |||||||||
1,513 | Destination Maternity Corp. | 30,018 | |||||||||
1,455 | Drew Industries, Inc.(a) | 43,330 | |||||||||
7,720 | E.W. Scripps Co. (The), Class A(a) | 70,715 | |||||||||
5,560 | Entercom Communications Corp., Class A | 34,416 | |||||||||
5,916 | Entravision Communications Corp., Class A(a) | 9,288 | |||||||||
2,618 | Ethan Allen Interiors, Inc. | 60,738 | |||||||||
54,486 | Exide Technologies(a) | 156,920 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
5,491 | Federal-Mogul Corp.(a) | $ | 70,999 | ||||||||
3,059 | Finish Line, Inc. (The), Class A | 68,093 | |||||||||
5,277 | Fred's, Inc., Class A | 75,567 | |||||||||
2,538 | Gaylord Entertainment Co.(a) | 79,896 | |||||||||
3,732 | Group 1 Automotive, Inc. | 216,008 | |||||||||
4,009 | Harman International Industries, Inc. | 198,766 | |||||||||
7,800 | Harte-Hanks, Inc. | 65,520 | |||||||||
2,445 | Haverty Furniture Cos., Inc. | 29,340 | |||||||||
6,115 | hhgregg, Inc.(a)(b) | 63,963 | |||||||||
4,523 | Hot Topic, Inc. | 44,325 | |||||||||
33,045 | Hovnanian Enterprises, Inc., Class A(a)(b) | 66,090 | |||||||||
3,079 | HSN, Inc. | 119,157 | |||||||||
3,287 | Hyatt Hotels Corp., Class A(a) | 141,440 | |||||||||
4,656 | International Speedway Corp., Class A | 124,269 | |||||||||
4,001 | Isle of Capri Casinos, Inc.(a) | 25,006 | |||||||||
7,063 | Jack in the Box, Inc.(a) | 160,471 | |||||||||
4,307 | JAKKS Pacific, Inc. | 82,134 | |||||||||
469 | Johnson Outdoors, Inc., Class A(a) | 8,662 | |||||||||
5,965 | Journal Communications, Inc., Class A(a) | 24,993 | |||||||||
15,798 | KB Home(b) | 137,127 | |||||||||
919 | Kenneth Cole Productions, Inc., Class A(a) | 14,640 | |||||||||
5,649 | Lamar Advertising Co., Class A(a) | 179,751 | |||||||||
4,651 | La-Z-Boy, Inc.(a) | 70,091 | |||||||||
2,347 | LeapFrog Enterprises, Inc.(a) | 21,921 | |||||||||
2,481 | Libbey, Inc.(a) | 35,404 | |||||||||
5,482 | LIN TV Corp., Class A(a) | 21,654 | |||||||||
4,693 | Lincoln Educational Services Corp. | 34,447 | |||||||||
3,135 | Lithia Motors, Inc., Class A | 84,112 | |||||||||
11,025 | Liz Claiborne, Inc.(a) | 147,735 | |||||||||
2,742 | M/I Homes, Inc.(a) | 36,469 | |||||||||
857 | Mac-Gray Corp. | 12,769 | |||||||||
2,753 | Marcus Corp. | 34,440 | |||||||||
4,871 | MarineMax, Inc.(a) | 51,925 | |||||||||
2,158 | Matthews International Corp., Class A | 64,740 | |||||||||
28,364 | McClatchy Co. (The), Class A(a) | 77,150 | |||||||||
5,067 | MDC Holdings, Inc. | 142,433 | |||||||||
3,598 | Men's Wearhouse, Inc. (The) | 133,270 | |||||||||
3,721 | Meredith Corp.(b) | 107,276 | |||||||||
3,693 | Meritage Homes Corp.(a) | 104,844 | |||||||||
8,624 | Modine Manufacturing Co.(a) | 68,130 | |||||||||
953 | Monarch Casino & Resort, Inc.(a) | 9,225 | |||||||||
3,096 | Morgans Hotel Group Co.(a) | 15,356 | |||||||||
1,165 | Movado Group, Inc. | 33,028 | |||||||||
1,987 | Multimedia Games Holding Co., Inc.(a) | 22,572 | |||||||||
5,184 | New York & Co., Inc.(a) | 20,477 | |||||||||
31,703 | New York Times Co. (The), Class A(a) | 200,046 | |||||||||
4,356 | Nutrisystem, Inc. | 50,442 | |||||||||
8,254 | Orbitz Worldwide, Inc.(a) | 30,127 | |||||||||
868 | Oxford Industries, Inc. | 41,655 | |||||||||
1,650 | P.F. Chang's China Bistro, Inc. | 65,488 | |||||||||
7,593 | Penske Automotive Group, Inc. | 200,759 |
See Notes to Financial Statements.
57
Schedule of Investments (Continued)
PowerShares Fundamental Pure Small Value Portfolio (PXSV)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
6,260 | Pep Boys - Manny, Moe & Jack (The) | $ | 93,462 | ||||||||
2,474 | Perry Ellis International, Inc.(a) | 46,289 | |||||||||
7,989 | Pinnacle Entertainment, Inc.(a) | 88,678 | |||||||||
2,738 | Pool Corp. | 101,060 | |||||||||
22,344 | Quiksilver, Inc.(a) | 77,310 | |||||||||
1,596 | Red Robin Gourmet Burgers, Inc.(a) | 56,913 | |||||||||
14,278 | Regal Entertainment Group, Class A(b) | 194,324 | |||||||||
8,708 | Regis Corp. | 159,792 | |||||||||
10,101 | Ruby Tuesday, Inc.(a) | 68,687 | |||||||||
3,739 | Ruth's Hospitality Group, Inc.(a) | 25,874 | |||||||||
6,618 | Ryland Group, Inc. | 148,971 | |||||||||
334 | Saga Communications, Inc., Class A(a) | 12,578 | |||||||||
3,174 | Scholastic Corp. | 96,966 | |||||||||
6,317 | Scientific Games Corp., Class A(a) | 64,181 | |||||||||
1,844 | Shoe Carnival, Inc.(a) | 35,838 | |||||||||
5,473 | Sinclair Broadcast Group, Inc., Class A | 56,262 | |||||||||
1,741 | Six Flags Entertainment Corp. | 83,411 | |||||||||
8,143 | Skechers U.S.A., Inc., Class A(a) | 152,030 | |||||||||
9,109 | Sonic Automotive, Inc., Class A(b) | 153,213 | |||||||||
7,529 | Sonic Corp.(a) | 54,359 | |||||||||
5,407 | Spartan Motors, Inc. | 23,520 | |||||||||
1,708 | Speedway Motorsports, Inc. | 29,138 | |||||||||
5,512 | Stage Stores, Inc. | 84,168 | |||||||||
1,753 | Standard Motor Products, Inc. | 26,418 | |||||||||
6,445 | Standard Pacific Corp.(a)(b) | 32,612 | |||||||||
7,056 | Stein Mart, Inc.(a) | 45,300 | |||||||||
573 | Steinway Musical Instruments, Inc.(a) | 14,445 | |||||||||
8,997 | Stewart Enterprises, Inc., Class A | 56,861 | |||||||||
3,384 | Stoneridge, Inc.(a) | 29,170 | |||||||||
2,915 | Superior Industries International, Inc. | 49,876 | |||||||||
1,462 | Systemax, Inc.(a) | 25,103 | |||||||||
24,022 | Talbots, Inc. (The)(a)(b) | 71,105 | |||||||||
4,610 | Thor Industries, Inc. | 155,956 | |||||||||
1,634 | Tower International, Inc.(a) | 17,386 | |||||||||
9,092 | TravelCenters of America LLC(a) | 57,280 | |||||||||
3,295 | Unifi, Inc.(a) | 36,640 | |||||||||
1,920 | Universal Technical Institute, Inc. | 23,040 | |||||||||
2,692 | Vail Resorts, Inc. | 109,780 | |||||||||
2,682 | VOXX International Corp., Class A(a) | 34,035 | |||||||||
2,353 | West Marine, Inc.(a) | 27,554 | |||||||||
458 | Weyco Group, Inc. | 11,171 | |||||||||
3,786 | Winnebago Industries, Inc.(a) | 36,914 | |||||||||
4,919 | World Wrestling Entertainment, Inc., Class A(b) | 38,762 | |||||||||
10,710,120 | |||||||||||
Consumer Staples—3.2% | |||||||||||
299 | Alico, Inc. | 6,799 | |||||||||
14,265 | Alliance One International, Inc.(a) | 50,498 | |||||||||
63 | Arden Group, Inc., Class A | 5,573 | |||||||||
9,957 | Central Garden & Pet Co., Class A(a) | 106,441 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
15,328 | Chiquita Brands International, Inc.(a) | $ | 130,288 | ||||||||
610 | Coca-Cola Bottling Co. Consolidated | 39,132 | |||||||||
12,903 | Dole Food Co., Inc.(a)(b) | 109,418 | |||||||||
1,735 | Elizabeth Arden, Inc.(a) | 67,630 | |||||||||
5,700 | Fresh Del Monte Produce, Inc. | 132,069 | |||||||||
4,727 | Harris Teeter Supermarkets, Inc. | 179,484 | |||||||||
2,857 | Ingles Markets, Inc., Class A | 49,683 | |||||||||
1,148 | Lancaster Colony Corp. | 74,861 | |||||||||
2,773 | Nash Finch Co. | 69,602 | |||||||||
1,081 | National Beverage Corp.(a) | 16,064 | |||||||||
640 | Nature's Sunshine Products, Inc.(a) | 9,907 | |||||||||
370 | Oil-Dri Corp. of America | 7,829 | |||||||||
2,332 | Omega Protein Corp.(a) | 16,697 | |||||||||
9,988 | Pilgrim's Pride Corp.(a) | 71,314 | |||||||||
3,075 | Prestige Brands Holdings, Inc.(a) | 52,244 | |||||||||
1,408 | Schiff Nutrition International, Inc.(a) | 23,162 | |||||||||
1,777 | Seneca Foods Corp., Class A(a) | 41,386 | |||||||||
4,939 | Spartan Stores, Inc. | 90,038 | |||||||||
1,094 | Tootsie Roll Industries, Inc.(b) | 26,048 | |||||||||
4,176 | Universal Corp. | 191,386 | |||||||||
747 | Village Super Market, Inc., Class A | 20,617 | |||||||||
1,421 | Weis Markets, Inc. | 63,377 | |||||||||
1,651,547 | |||||||||||
Energy—4.6% | |||||||||||
393 | Adams Resources & Energy, Inc. | 23,867 | |||||||||
3,986 | Alon USA Energy, Inc. | 36,033 | |||||||||
4,243 | Basic Energy Services, Inc.(a) | 61,099 | |||||||||
24,390 | Cal Dive International, Inc.(a) | 94,389 | |||||||||
3,029 | Callon Petroleum Co.(a) | 17,599 | |||||||||
7,063 | Comstock Resources, Inc.(a) | 124,097 | |||||||||
8,076 | Crosstex Energy, Inc. | 120,332 | |||||||||
778 | Dawson Geophysical Co.(a) | 20,889 | |||||||||
1,726 | Delek US Holdings, Inc. | 28,134 | |||||||||
285 | Enduro Royalty Trust | 5,979 | |||||||||
953 | Gulf Island Fabrication, Inc. | 26,703 | |||||||||
19,384 | Hercules Offshore, Inc.(a) | 98,471 | |||||||||
8,874 | James River Coal Co.(a)(b) | 44,015 | |||||||||
7,850 | Newpark Resources, Inc.(a) | 49,926 | |||||||||
19,892 | Overseas Shipholding Group, Inc.(b) | 232,736 | |||||||||
16,097 | Parker Drilling Co.(a) | 83,222 | |||||||||
23,877 | Penn Virginia Corp. | 122,250 | |||||||||
2,026 | Petroleum Development Corp.(a) | 69,674 | |||||||||
6,115 | PetroQuest Energy, Inc.(a) | 36,935 | |||||||||
1,193 | PHI, Inc.(a) | 31,770 | |||||||||
502 | REX American Resources Corp.(a) | 13,925 | |||||||||
5,189 | Semgroup Corp., Class A(a) | 165,010 | |||||||||
3,658 | Stone Energy Corp.(a) | 102,607 | |||||||||
4,069 | Swift Energy Co.(a) | 123,087 | |||||||||
3,052 | Targa Resources Corp. | 146,771 | |||||||||
11,381 | TETRA Technologies, Inc.(a) | 99,129 |
See Notes to Financial Statements.
58
Schedule of Investments (Continued)
PowerShares Fundamental Pure Small Value Portfolio (PXSV)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
4,524 | Union Drilling, Inc.(a) | $ | 25,199 | ||||||||
121,534 | USEC, Inc.(a)(b) | 102,283 | |||||||||
2,738 | W&T Offshore, Inc. | 54,130 | |||||||||
8,616 | Western Refining, Inc. | 164,135 | |||||||||
17,748 | Willbros Group, Inc.(a) | 95,839 | |||||||||
2,420,235 | |||||||||||
Financials—25.3% | |||||||||||
1,393 | 1st Source Corp. | 31,607 | |||||||||
870 | Agree Realty Corp. REIT | 19,836 | |||||||||
8,462 | American Equity Investment Life Holding Co. | 103,744 | |||||||||
346 | American National Bankshares, Inc. | 8,107 | |||||||||
1,365 | American Safety Insurance Holdings Ltd. (Bermuda)(a) | 25,839 | |||||||||
1,915 | Ameris Bancorp(a) | 23,746 | |||||||||
689 | Ames National Corp. | 15,213 | |||||||||
19,489 | Anworth Mortgage Asset Corp. REIT | 131,356 | |||||||||
1,394 | Apollo Commercial Real Estate Finance, Inc. REIT | 22,485 | |||||||||
1,041 | Arrow Financial Corp. | 24,922 | |||||||||
4,224 | Artio Global Investors, Inc. | 15,291 | |||||||||
12,547 | Ashford Hospitality Trust, Inc. REIT | 107,151 | |||||||||
19,378 | Astoria Financial Corp. | 187,773 | |||||||||
758 | Baldwin & Lyons, Inc., Class B | 16,502 | |||||||||
514 | BancFirst Corp. | 21,434 | |||||||||
14,158 | BancorpSouth, Inc. | 190,708 | |||||||||
5,585 | Bank Mutual Corp. | 21,782 | |||||||||
4,431 | Bank of Hawaii Corp. | 216,632 | |||||||||
1,899 | Banner Corp. | 41,683 | |||||||||
5,542 | Boston Private Financial Holdings, Inc. | 51,651 | |||||||||
555 | Bridge Bancorp, Inc. | 10,811 | |||||||||
7,594 | Brookline Bancorp, Inc. | 68,194 | |||||||||
4,300 | Calamos Asset Management, Inc., Class A | 55,556 | |||||||||
717 | Camden National Corp. | 23,317 | |||||||||
1,584 | Capital City Bank Group, Inc. | 13,226 | |||||||||
9,642 | Capitol Federal Financial, Inc. | 113,872 | |||||||||
9,496 | CapLease, Inc. REIT | 39,408 | |||||||||
6,341 | Cathay General Bancorp | 109,192 | |||||||||
9,439 | Cedar Realty Trust, Inc. REIT | 49,272 | |||||||||
782 | Center Bancorp, Inc. | 8,266 | |||||||||
3,048 | Central Pacific Financial Corp.(a) | 43,343 | |||||||||
213 | Century Bancorp, Inc., Class A | 5,851 | |||||||||
3,308 | Chemical Financial Corp. | 73,008 | |||||||||
1,117 | Chesapeake Lodging Trust REIT | 20,218 | |||||||||
984 | Citizens & Northern Corp. | 18,637 | |||||||||
7,966 | Citizens Republic Bancorp, Inc.(a) | 134,386 | |||||||||
1,559 | City Holding Co.(b) | 51,993 | |||||||||
3,179 | CNA Financial Corp. | 97,341 | |||||||||
3,557 | CoBiz Financial, Inc. | 22,231 | |||||||||
9,013 | Colonial Properties Trust REIT | 201,621 | |||||||||
2,681 | Community Bank System, Inc. | 75,390 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
1,367 | Community Trust Bancorp, Inc. | $ | 43,676 | ||||||||
218 | Consolidated-Tomoka Land Co. | 6,409 | |||||||||
12,579 | Cousins Properties, Inc. REIT | 98,871 | |||||||||
8,419 | Cowen Group, Inc., Class A(a) | 21,216 | |||||||||
4,252 | Crawford & Co., Class B | 20,282 | |||||||||
6,863 | CVB Financial Corp. | 79,405 | |||||||||
26,796 | DCT Industrial Trust, Inc. REIT | 158,900 | |||||||||
2,826 | Dime Community Bancshares | 39,168 | |||||||||
960 | Donegal Group, Inc., Class A | 13,075 | |||||||||
2,554 | Edelman Financial Group, Inc. | 22,552 | |||||||||
492 | EMC Insurance Group, Inc. | 9,727 | |||||||||
3,867 | Employers Holdings, Inc. | 66,976 | |||||||||
398 | Encore Bancshares, Inc.(a) | 8,163 | |||||||||
398 | Enterprise Bancorp, Inc. | 6,404 | |||||||||
4,000 | Equity One, Inc. REIT | 83,120 | |||||||||
957 | ESB Financial Corp. | 12,853 | |||||||||
12,124 | F.N.B. Corp. | 137,607 | |||||||||
1,734 | FBL Financial Group, Inc., Class A(b) | 50,494 | |||||||||
924 | Federal Agricultural Mortgage Corp., Class C | 21,123 | |||||||||
21,666 | FelCor Lodging Trust, Inc. REIT(a) | 91,431 | |||||||||
1,178 | Financial Institutions, Inc. | 19,932 | |||||||||
2,104 | First Bancorp | 21,082 | |||||||||
689 | First Bancorp, Inc. | 9,997 | |||||||||
8,333 | First Busey Corp. | 38,665 | |||||||||
439 | First Citizens BancShares, Inc., Class A | 76,079 | |||||||||
13,908 | First Commonwealth Financial Corp. | 89,428 | |||||||||
2,137 | First Community Bancshares, Inc. | 28,614 | |||||||||
1,052 | First Defiance Financial Corp. | 18,073 | |||||||||
978 | First Financial Corp. | 29,340 | |||||||||
2,950 | First Financial Holdings, Inc. | 34,043 | |||||||||
7,082 | First Industrial Realty Trust, Inc. REIT(a) | 87,392 | |||||||||
2,085 | First Interstate BancSystem, Inc. | 29,378 | |||||||||
3,543 | First Merchants Corp. | 43,685 | |||||||||
9,697 | First Midwest Bancorp, Inc. | 103,273 | |||||||||
12,944 | FirstMerit Corp. | 217,459 | |||||||||
3,129 | Flushing Financial Corp. | 40,771 | |||||||||
8,041 | Forest City Enterprises, Inc., Class A(a) | 128,254 | |||||||||
2,660 | Forestar Group, Inc.(a) | 40,911 | |||||||||
7,856 | Franklin Street Properties Corp. REIT | 79,110 | |||||||||
2,347 | FXCM, Inc., Class A | 27,178 | |||||||||
320 | GAMCO Investors, Inc., Class A | 14,419 | |||||||||
852 | German American Bancorp, Inc. | 16,222 | |||||||||
2,389 | Getty Realty Corp. REIT(a)(b) | 37,794 | |||||||||
13,092 | GFI Group, Inc. | 43,204 | |||||||||
6,963 | Glacier Bancorp, Inc. | 103,749 | |||||||||
12,941 | Gleacher & Co., Inc.(a) | 13,459 | |||||||||
7,722 | Glimcher Realty Trust REIT | 76,371 | |||||||||
1,205 | Great Southern Bancorp, Inc. | 28,968 | |||||||||
3,663 | Hanmi Financial Corp.(a) | 38,205 | |||||||||
2,036 | Harleysville Group, Inc. | 122,038 | |||||||||
6,211 | Healthcare Realty Trust, Inc. REIT | 133,412 |
See Notes to Financial Statements.
59
Schedule of Investments (Continued)
PowerShares Fundamental Pure Small Value Portfolio (PXSV)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
1,107 | Heartland Financial USA, Inc. | $ | 20,502 | ||||||||
6,126 | Highwoods Properties, Inc. REIT | 212,756 | |||||||||
1,209 | Home Federal Bancorp, Inc. | 11,836 | |||||||||
5,453 | Horace Mann Educators Corp. | 95,700 | |||||||||
1,197 | Howard Hughes Corp. (The)(a) | 80,331 | |||||||||
1,990 | Hudson Valley Holding Corp. | 36,477 | |||||||||
1,479 | Infinity Property & Casualty Corp. | 78,993 | |||||||||
9,240 | Inland Real Estate Corp. REIT | 79,464 | |||||||||
11,870 | Interactive Brokers Group, Inc., Class A | 180,068 | |||||||||
6,481 | International Bancshares Corp. | 127,870 | |||||||||
9,614 | Investment Technology Group, Inc.(a) | 98,063 | |||||||||
10,296 | Investors Real Estate Trust REIT | 74,337 | |||||||||
8,906 | Janus Capital Group, Inc. | 67,507 | |||||||||
774 | Kansas City Life Insurance Co. | 25,186 | |||||||||
9,248 | Kite Realty Group Trust REIT | 47,257 | |||||||||
12,191 | Knight Capital Group, Inc., Class A(a) | 160,190 | |||||||||
2,538 | Lakeland Bancorp, Inc. | 23,197 | |||||||||
16,623 | Lexington Realty Trust REIT(b) | 147,945 | |||||||||
2,383 | MainSource Financial Group, Inc. | 27,857 | |||||||||
815 | Marlin Business Services Corp. | 11,964 | |||||||||
5,177 | MB Financial, Inc. | 107,009 | |||||||||
16,746 | MBIA, Inc.(a)(b) | 168,800 | |||||||||
387 | Merchants Bancshares, Inc. | 10,403 | |||||||||
3,593 | Mercury General Corp. | 162,368 | |||||||||
1,767 | Metro Bancorp, Inc.(a) | 20,444 | |||||||||
33,037 | MGIC Investment Corp.(a)(b) | 114,308 | |||||||||
2,958 | Mission West Properties, Inc. REIT | 25,971 | |||||||||
527 | National Bankshares, Inc. | 15,657 | |||||||||
5,377 | National Financial Partners Corp.(a) | 79,311 | |||||||||
330 | National Western Life Insurance Co., Class A | 44,900 | |||||||||
1,673 | Navigators Group, Inc. (The)(a) | 79,467 | |||||||||
3,583 | NBT Bancorp, Inc. | 73,631 | |||||||||
2,991 | Nelnet, Inc., Class A | 77,228 | |||||||||
16,607 | Newcastle Investment Corp. REIT | 117,411 | |||||||||
1,473 | OceanFirst Financial Corp. | 21,462 | |||||||||
10,043 | Old National Bancorp | 128,751 | |||||||||
1,070 | One Liberty Properties, Inc. REIT | 20,234 | |||||||||
4,413 | OneBeacon Insurance Group Ltd., Class A | 62,797 | |||||||||
1,938 | Oppenheimer Holdings, Inc., Class A | 33,062 | |||||||||
427 | Pacific Capital Bancorp(a) | 19,450 | |||||||||
1,806 | Pacific Continental Corp. | 16,055 | |||||||||
2,852 | PacWest Bancorp | 67,935 | |||||||||
1,773 | Park National Corp.(b) | 119,234 | |||||||||
5,200 | Parkway Properties, Inc. REIT | 51,428 | |||||||||
348 | Penns Woods Bancorp, Inc. | 13,725 | |||||||||
8,786 | Pennsylvania Real Estate Investment Trust REIT | 123,795 | |||||||||
1,618 | PennyMac Mortgage Investment Trust REIT | 32,829 | |||||||||
1,082 | Peoples Bancorp, Inc. | 19,898 | |||||||||
24,641 | Phoenix Cos., Inc. (The)(a) | 51,746 | |||||||||
2,758 | Piper Jaffray Companies, Inc.(a) | 66,881 | |||||||||
2,722 | Post Properties, Inc. REIT | 132,561 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
2,927 | Presidential Life Corp. | $ | 33,895 | ||||||||
6,934 | Primerica, Inc. | 181,879 | |||||||||
5,765 | Provident Financial Services, Inc. | 84,746 | |||||||||
4,171 | Provident New York Bancorp | 35,203 | |||||||||
1,108 | PS Business Parks, Inc. REIT | 75,621 | |||||||||
16,573 | Radian Group, Inc.(b) | 51,708 | |||||||||
23,653 | RAIT Financial Trust REIT | 114,481 | |||||||||
5,055 | Ramco-Gershenson Properties Trust REIT | 60,862 | |||||||||
17,183 | Redwood Trust, Inc. REIT | 200,697 | |||||||||
3,101 | Renasant Corp. | 49,616 | |||||||||
1,900 | Retail Opportunity Investments Corp. REIT | 23,085 | |||||||||
1,553 | RLI Corp. | 106,971 | |||||||||
3,085 | S&T Bancorp, Inc. | 57,751 | |||||||||
1,105 | S.Y. Bancorp, Inc. | 25,636 | |||||||||
1,648 | Safety Insurance Group, Inc. | 65,673 | |||||||||
2,352 | Sandy Spring Bancorp, Inc. | 42,360 | |||||||||
3,857 | Seabright Holdings, Inc. | 34,674 | |||||||||
8,479 | Seacoast Banking Corp. of Florida(a) | 13,736 | |||||||||
8,272 | Selective Insurance Group, Inc. | 144,677 | |||||||||
1,494 | Simmons First National Corp., Class A | 36,364 | |||||||||
3,307 | Southwest Bancorp, Inc.(a) | 30,061 | |||||||||
2,764 | St. Joe Co. (The)(a)(b) | 49,282 | |||||||||
4,869 | Starwood Property Trust, Inc. REIT | 101,616 | |||||||||
2,115 | State Auto Financial Corp. | 30,308 | |||||||||
2,574 | State Bank Financial Corp.(a) | 44,401 | |||||||||
2,934 | StellarOne Corp. | 36,704 | |||||||||
3,243 | Sterling Bancorp | 30,841 | |||||||||
2,901 | Sterling Financial Corp.(a) | 56,337 | |||||||||
5,274 | Stewart Information Services Corp. | 77,633 | |||||||||
9,883 | Strategic Hotels & Resorts, Inc. REIT(a) | 67,303 | |||||||||
2,408 | Summit Hotel Properties, Inc. REIT | 20,131 | |||||||||
14,669 | Sunstone Hotel Investors, Inc. REIT(a) | 149,624 | |||||||||
19,957 | Susquehanna Bancshares, Inc. | 206,954 | |||||||||
9,644 | SWS Group, Inc.(a) | 54,392 | |||||||||
15,399 | Symetra Financial Corp. | 187,252 | |||||||||
541 | Taylor Capital Group, Inc.(a) | 7,531 | |||||||||
640 | Terreno Realty Corp. REIT | 9,152 | |||||||||
676 | Tompkins Financial Corp. | 25,587 | |||||||||
1,472 | TriCo Bancshares | 24,200 | |||||||||
11,774 | TrustCo Bank Corp. NY | 64,404 | |||||||||
6,283 | Trustmark Corp. | 159,902 | |||||||||
2,394 | UMB Financial Corp. | 115,032 | |||||||||
1,237 | UMH Properties, Inc. REIT | 14,584 | |||||||||
2,351 | Union First Market Bankshares Corp. | 32,820 | |||||||||
3,795 | United Bankshares, Inc. | 100,302 | |||||||||
3,042 | United Community Banks, Inc.(a) | 28,625 | |||||||||
2,954 | United Fire Group, Inc. | 50,868 | |||||||||
465 | Universal Health Realty Income Trust REIT | 18,805 | |||||||||
1,954 | Univest Corp. of Pennsylvania | 31,459 | |||||||||
1,685 | Urstadt Biddle Properties, Inc., Class A REIT | 32,419 | |||||||||
13,959 | Valley National Bancorp | 175,883 |
See Notes to Financial Statements.
60
Schedule of Investments (Continued)
PowerShares Fundamental Pure Small Value Portfolio (PXSV)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
11,790 | Washington Federal, Inc. | $ | 206,797 | ||||||||
950 | Washington Trust Bancorp, Inc. | 22,486 | |||||||||
7,102 | Webster Financial Corp. | 161,428 | |||||||||
3,506 | WesBanco, Inc. | 71,803 | |||||||||
1,580 | West Bancorporation, Inc. | 15,168 | |||||||||
1,123 | West Coast Bancorp(a) | 21,943 | |||||||||
2,026 | Westamerica Bancorp | 92,933 | |||||||||
3,015 | Westfield Financial, Inc. | 22,522 | |||||||||
555 | Whitestone REIT, Class B | 7,670 | |||||||||
5,377 | Wilshire Bancorp, Inc.(a) | 28,821 | |||||||||
3,033 | Wintrust Financial Corp. | 109,582 | |||||||||
756 | WSFS Financial Corp. | 30,172 | |||||||||
13,246,175 | |||||||||||
Health Care—5.0% | |||||||||||
8,888 | Affymetrix, Inc.(a) | 39,285 | |||||||||
9,766 | Amedisys, Inc.(a) | 143,853 | |||||||||
8,358 | AMN Healthcare Services, Inc.(a) | 56,082 | |||||||||
3,699 | AmSurg Corp.(a) | 106,383 | |||||||||
10,328 | Brookdale Senior Living, Inc.(a) | 196,335 | |||||||||
14,487 | Cambrex Corp.(a) | 93,876 | |||||||||
2,343 | Capital Senior Living Corp.(a) | 22,704 | |||||||||
3,752 | Charles River Laboratories International, Inc.(a) | 133,309 | |||||||||
2,546 | CONMED Corp. | 72,790 | |||||||||
8,308 | Cross Country Healthcare, Inc.(a) | 38,300 | |||||||||
3,342 | Enzon Pharmaceuticals, Inc.(a) | 20,821 | |||||||||
14,477 | Five Star Quality Care, Inc.(a) | 49,656 | |||||||||
14,709 | Gentiva Health Services, Inc.(a) | 121,791 | |||||||||
9,715 | Healthways, Inc.(a) | 64,799 | |||||||||
5,029 | Hill-Rom Holdings, Inc. | 163,191 | |||||||||
5,254 | Invacare Corp. | 83,276 | |||||||||
5,968 | Lincare Holdings, Inc. | 145,619 | |||||||||
3,861 | Magellan Health Services, Inc.(a) | 170,965 | |||||||||
812 | National Healthcare Corp. | 37,027 | |||||||||
1,272 | Palomar Medical Technologies, Inc.(a) | 11,066 | |||||||||
7,559 | PerkinElmer, Inc. | 208,628 | |||||||||
7,466 | PharMerica Corp.(a) | 88,621 | |||||||||
5,842 | Select Medical Holdings Corp.(a) | 50,066 | |||||||||
4,538 | Skilled Healthcare Group, Inc., Class A(a) | 34,806 | |||||||||
4,589 | STERIS Corp. | 144,141 | |||||||||
11,863 | Sunrise Senior Living, Inc.(a)(b) | 74,500 | |||||||||
1,174 | SurModics, Inc.(a) | 17,363 | |||||||||
5,678 | Symmetry Medical, Inc.(a) | 40,371 | |||||||||
10,120 | Universal American Corp. | 92,902 | |||||||||
6,499 | Vanguard Health Systems, Inc.(a) | 57,711 | |||||||||
388 | Young Innovations, Inc. | 13,192 | |||||||||
2,593,429 | �� | ||||||||||
Industrials—20.2% | |||||||||||
2,611 | A.O. Smith Corp. | 124,284 | |||||||||
5,748 | ABM Industries, Inc. | 133,813 | |||||||||
7,331 | ACCO Brands Corp.(a) | 77,342 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
6,358 | Accuride Corp.(a) | $ | 46,095 | ||||||||
2,320 | Aceto Corp. | 20,880 | |||||||||
2,301 | Acuity Brands, Inc. | 127,867 | |||||||||
2,389 | Air Lease Corp.(a)(b) | 56,189 | |||||||||
12,376 | Air Transport Services Group, Inc.(a) | 65,593 | |||||||||
715 | Alamo Group, Inc. | 24,081 | |||||||||
3,002 | Albany International Corp., Class A | 72,348 | |||||||||
3,689 | Alexander & Baldwin, Inc. | 188,729 | |||||||||
937 | AMERCO | 94,112 | |||||||||
5,827 | American Reprographics Co.(a) | 31,815 | |||||||||
1,270 | American Woodmark Corp.(a) | 22,797 | |||||||||
1,366 | Ampco-Pittsburgh Corp. | 25,380 | |||||||||
4,026 | Apogee Enterprises, Inc. | 61,839 | |||||||||
2,723 | Applied Industrial Technologies, Inc. | 107,014 | |||||||||
4,851 | Arkansas Best Corp. | 74,414 | |||||||||
3,881 | Armstrong World Industries, Inc. | 170,919 | |||||||||
1,597 | Astec Industries, Inc.(a) | 49,970 | |||||||||
3,233 | Atlas Air Worldwide Holdings, Inc.(a) | 148,880 | |||||||||
3,791 | Barnes Group, Inc. | 100,082 | |||||||||
555 | Barrett Business Services, Inc. | 10,989 | |||||||||
2,830 | Belden, Inc. | 98,427 | |||||||||
4,025 | Brady Corp., Class A | 124,896 | |||||||||
8,806 | Briggs & Stratton Corp. | 159,389 | |||||||||
6,672 | Brink's Co. (The) | 169,469 | |||||||||
4,910 | Builders FirstSource, Inc.(a) | 20,475 | |||||||||
4,213 | Carlisle Cos., Inc. | 231,968 | |||||||||
665 | Cascade Corp. | 31,302 | |||||||||
4,959 | Casella Waste Systems, Inc., Class A(a) | 29,903 | |||||||||
6,052 | CBIZ, Inc.(a) | 36,736 | |||||||||
1,862 | CDI Corp. | 33,032 | |||||||||
2,246 | Celadon Group, Inc. | 35,105 | |||||||||
12,302 | Cenveo, Inc.(a) | 35,184 | |||||||||
2,887 | Ceradyne, Inc. | 73,099 | |||||||||
1,392 | CIRCOR International, Inc. | 43,319 | |||||||||
1,621 | Coleman Cable, Inc. | 13,778 | |||||||||
2,358 | Columbus McKinnon Corp.(a) | 34,969 | |||||||||
5,689 | Comfort Systems USA, Inc. | 60,190 | |||||||||
2,266 | Commercial Vehicle Group, Inc.(a) | 24,110 | |||||||||
1,473 | Consolidated Graphics, Inc.(a) | 58,905 | |||||||||
1,904 | Corporate Executive Board Co. (The) | 78,768 | |||||||||
2,252 | Courier Corp. | 23,128 | |||||||||
11,179 | Covanta Holding Corp. | 179,423 | |||||||||
1,352 | CRA International, Inc.(a) | 27,648 | |||||||||
3,533 | Crane Co. | 155,911 | |||||||||
6,798 | Deluxe Corp. | 161,860 | |||||||||
1,942 | Ducommun, Inc.(a) | 22,916 | |||||||||
3,606 | Dycom Industries, Inc.(a) | 84,344 | |||||||||
1,568 | Encore Wire Corp. | 39,968 | |||||||||
19,520 | EnergySolutions, Inc.(a) | 82,179 | |||||||||
3,669 | Ennis, Inc. | 57,823 | |||||||||
2,025 | EnPro Industries, Inc.(a) | 83,855 |
See Notes to Financial Statements.
61
Schedule of Investments (Continued)
PowerShares Fundamental Pure Small Value Portfolio (PXSV)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
11,966 | Federal Signal Corp.(a) | $ | 61,745 | ||||||||
3,399 | Flow International Corp.(a) | 13,970 | |||||||||
1,252 | Franklin Covey Co.(a) | 11,631 | |||||||||
1,405 | FreightCar America, Inc. | 30,348 | |||||||||
1,977 | G&K Services, Inc., Class A | 64,964 | |||||||||
4,837 | GATX Corp. | 207,362 | |||||||||
13,795 | Genco Shipping & Trading Ltd.(a)(b) | 73,803 | |||||||||
1,707 | Generac Holdings, Inc.(a) | 41,105 | |||||||||
4,103 | Gibraltar Industries, Inc.(a) | 55,473 | |||||||||
2,224 | Graco, Inc. | 118,561 | |||||||||
4,580 | Granite Construction, Inc. | 127,507 | |||||||||
2,317 | Greenbrier Cos., Inc.(a) | 39,968 | |||||||||
7,700 | Griffon Corp. | 76,307 | |||||||||
3,241 | H&E Equipment Services, Inc.(a) | 62,551 | |||||||||
4,880 | Heartland Express, Inc. | 67,490 | |||||||||
1,829 | Heidrick & Struggles International, Inc. | 35,666 | |||||||||
4,451 | Herman Miller, Inc. | 86,928 | |||||||||
5,568 | HNI Corp. | 134,300 | |||||||||
4,552 | Hudson Global, Inc.(a) | 24,763 | |||||||||
654 | Hurco Cos., Inc.(a) | 17,220 | |||||||||
2,285 | Insperity, Inc. | 62,312 | |||||||||
1,808 | Insteel Industries, Inc. | 20,557 | |||||||||
4,323 | Interface, Inc., Class A | 61,214 | |||||||||
4,083 | Interline Brands, Inc.(a) | 85,906 | |||||||||
944 | International Shipholding Corp. | 19,975 | |||||||||
2,944 | John Bean Technologies Corp. | 47,075 | |||||||||
1,259 | Kadant, Inc.(a) | 32,570 | |||||||||
2,131 | Kaman Corp. | 73,264 | |||||||||
9,000 | Kelly Services, Inc., Class A | 125,910 | |||||||||
4,325 | Kennametal, Inc. | 182,645 | |||||||||
3,108 | Kforce, Inc.(a) | 44,973 | |||||||||
3,778 | Kimball International, Inc., Class B | 25,804 | |||||||||
4,278 | Knoll, Inc. | 63,272 | |||||||||
4,654 | Korn/Ferry International(a) | 75,162 | |||||||||
3,129 | Kratos Defense & Security Solutions, Inc.(a) | 17,366 | |||||||||
1,951 | Landstar System, Inc. | 104,515 | |||||||||
3,257 | Layne Christensen Co.(a) | 66,931 | |||||||||
4,121 | Lennox International, Inc. | 178,851 | |||||||||
3,006 | LSI Industries, Inc. | 20,591 | |||||||||
2,465 | Lydall, Inc.(a) | 26,006 | |||||||||
3,599 | Macquarie Infrastructure Co. LLC | 124,309 | |||||||||
13,141 | Manitowoc Co., Inc. (The) | 182,003 | |||||||||
1,748 | Marten Transport Ltd. | 36,830 | |||||||||
1,842 | McGrath Rentcorp | 54,192 | |||||||||
26,873 | Meritor, Inc.(a) | 174,943 | |||||||||
1,195 | Met-Pro Corp. | 11,902 | |||||||||
1,355 | Michael Baker Corp.(a) | 30,528 | |||||||||
1,065 | Miller Industries, Inc. | 17,466 | |||||||||
2,256 | Mine Safety Appliances Co. | 95,790 | |||||||||
2,952 | Mueller Industries, Inc. | 134,936 | |||||||||
28,084 | Mueller Water Products, Inc., Class A | 100,822 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
2,091 | MYR Group, Inc.(a) | $ | 34,962 | ||||||||
842 | NACCO Industries, Inc., Class A | 95,542 | |||||||||
5,244 | Navigant Consulting, Inc.(a) | 72,996 | |||||||||
5,408 | NCI Building Systems, Inc.(a) | 64,842 | |||||||||
384 | NL Industries, Inc. | 5,403 | |||||||||
1,461 | Northwest Pipe Co.(a) | 30,403 | |||||||||
4,110 | Orion Marine Group, Inc.(a) | 28,441 | |||||||||
12,956 | Pacer International, Inc.(a) | 77,866 | |||||||||
1,686 | Park-Ohio Holdings Corp.(a) | 36,401 | |||||||||
313 | Patriot Transportation Holding, Inc.(a) | 6,877 | |||||||||
2,737 | Pike Electric Corp.(a) | 22,498 | |||||||||
208 | Preformed Line Products Co. | 12,008 | |||||||||
8,579 | Quad/Graphics, Inc.(b) | 115,302 | |||||||||
2,633 | Quality Distribution, Inc.(a) | 29,411 | |||||||||
3,845 | Quanex Building Products Corp. | 70,863 | |||||||||
17,113 | Republic Airways Holdings, Inc.(a) | 87,105 | |||||||||
4,494 | Resources Connection, Inc. | 58,332 | |||||||||
4,318 | Rush Enterprises, Inc., Class A(a) | 78,069 | |||||||||
2,974 | Saia, Inc.(a) | 55,852 | |||||||||
1,628 | Schawk, Inc. | 21,929 | |||||||||
30 | Seaboard Corp.(a) | 59,713 | |||||||||
960 | SeaCube Container Leasing Ltd. (Bermuda) | 17,808 | |||||||||
2,451 | Simpson Manufacturing Co., Inc. | 76,055 | |||||||||
1,387 | Standex International Corp. | 61,111 | |||||||||
17,400 | Steelcase, Inc., Class A | 150,336 | |||||||||
3,285 | Sterling Construction Co., Inc.(a) | 32,160 | |||||||||
7,555 | Swift Transportation Co.(a) | 79,252 | |||||||||
1,485 | TAL International Group, Inc. | 61,345 | |||||||||
1,085 | Tennant Co. | 48,066 | |||||||||
2,389 | TMS International Corp., Class A(a) | 28,859 | |||||||||
1,610 | Toro Co. (The) | 115,051 | |||||||||
2,216 | Trimas Corp.(a) | 48,774 | |||||||||
4,400 | TrueBlue, Inc.(a) | 75,944 | |||||||||
12,608 | Tutor Perini Corp.(a) | 191,768 | |||||||||
580 | Twin Disc, Inc. | 12,719 | |||||||||
2,669 | Universal Forest Products, Inc. | 99,821 | |||||||||
740 | Universal Truckload Services, Inc. | 11,544 | |||||||||
1,252 | US Ecology, Inc. | 27,143 | |||||||||
15,291 | USG Corp.(a) | 276,003 | |||||||||
2,775 | Viad Corp. | 50,172 | |||||||||
3,102 | Wabash National Corp.(a) | 25,964 | |||||||||
2,134 | Watts Water Technologies, Inc., Class A | 78,574 | |||||||||
5,269 | Werner Enterprises, Inc. | 124,454 | |||||||||
10,555,531 | |||||||||||
Information Technology—9.2% | |||||||||||
7,762 | Acxiom Corp.(a) | 106,572 | |||||||||
2,214 | Agilysys, Inc.(a) | 19,395 | |||||||||
1,547 | American Software, Inc., Class A | 12,809 | |||||||||
20,636 | Amkor Technology, Inc.(a)(b) | 106,688 | |||||||||
3,511 | Applied Micro Circuits Corp.(a) | 19,591 |
See Notes to Financial Statements.
62
Schedule of Investments (Continued)
PowerShares Fundamental Pure Small Value Portfolio (PXSV)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
5,170 | Avid Technology, Inc.(a) | $ | 44,927 | ||||||||
4,168 | AVX Corp. | 52,934 | |||||||||
13,181 | Axcelis Technologies, Inc.(a) | 17,926 | |||||||||
1,087 | Bel Fuse, Inc., Class B | 19,338 | |||||||||
10,695 | Benchmark Electronics, Inc.(a) | 169,837 | |||||||||
2,971 | Black Box Corp. | 67,174 | |||||||||
7,926 | Broadridge Financial Solutions, Inc. | 183,962 | |||||||||
3,166 | CACI International, Inc., Class A(a) | 193,538 | |||||||||
6,929 | Checkpoint Systems, Inc.(a) | 75,942 | |||||||||
14,623 | CIBER, Inc.(a) | 60,832 | |||||||||
2,204 | Cohu, Inc. | 24,200 | |||||||||
14,407 | Compuware Corp.(a) | 125,629 | |||||||||
15,639 | Convergys Corp.(a) | 209,093 | |||||||||
3,257 | CSG Systems International, Inc.(a) | 46,901 | |||||||||
4,000 | CTS Corp. | 42,920 | |||||||||
3,541 | Daktronics, Inc. | 28,824 | |||||||||
2,413 | Digi International, Inc.(a) | 22,393 | |||||||||
3,829 | Digital River, Inc.(a) | 72,023 | |||||||||
2,341 | DST Systems, Inc. | 131,049 | |||||||||
14,980 | EarthLink, Inc. | 121,638 | |||||||||
1,519 | Electro Rent Corp. | 23,666 | |||||||||
3,514 | Electronics for Imaging, Inc.(a) | 62,725 | |||||||||
6,515 | Emulex Corp.(a) | 56,550 | |||||||||
730 | ePlus, Inc.(a) | 21,652 | |||||||||
4,882 | Extreme Networks, Inc.(a) | 18,698 | |||||||||
1,728 | Fair Isaac Corp. | 74,131 | |||||||||
12,609 | Fairchild Semiconductor International, Inc.(a) | 178,670 | |||||||||
6,316 | FormFactor, Inc.(a) | 35,370 | |||||||||
3,897 | Freescale Semiconductor Ltd. (Bermuda)(a)(b) | 48,362 | |||||||||
5,636 | Global Cash Access Holdings, Inc.(a) | 47,624 | |||||||||
2,375 | Hackett Group, Inc. (The)(a) | 13,561 | |||||||||
9,079 | Imation Corp.(a) | 52,658 | |||||||||
1,761 | InfoSpace, Inc.(a) | 19,600 | |||||||||
9,080 | Insight Enterprises, Inc.(a) | 184,415 | |||||||||
11,619 | Integrated Device Technology, Inc.(a) | 78,661 | |||||||||
7,684 | Intermec, Inc.(a) | 40,879 | |||||||||
5,518 | International Rectifier Corp.(a) | 120,458 | |||||||||
13,206 | Intersil Corp., Class A | 135,626 | |||||||||
7,239 | Kemet Corp.(a) | 61,604 | |||||||||
8,459 | Lender Processing Services, Inc. | 224,586 | |||||||||
7,328 | Lionbridge Technologies, Inc.(a) | 20,152 | |||||||||
1,849 | Marchex, Inc., Class B | 6,434 | |||||||||
1,337 | Mercury Computer Systems, Inc.(a) | 17,648 | |||||||||
4,276 | Methode Electronics, Inc. | 36,132 | |||||||||
10,177 | ModusLink Global Solutions, Inc. | 50,376 | |||||||||
15,960 | Monster Worldwide, Inc.(a) | 137,735 | |||||||||
738 | MTS Systems Corp. | 35,402 | |||||||||
12,011 | Openwave Systems, Inc.(a) | 30,988 | |||||||||
1,598 | Park Electrochemical Corp. | 46,102 | |||||||||
3,552 | PC Connection, Inc. | 28,487 | |||||||||
9,464 | Photronics, Inc.(a) | 58,582 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
1,970 | Plantronics, Inc. | $ | 75,490 | ||||||||
427 | QAD, Inc., Class B | 5,231 | |||||||||
18,602 | Quantum Corp.(a) | 44,273 | |||||||||
2,423 | RadiSys Corp.(a) | 15,386 | |||||||||
1,483 | Richardson Electronics Ltd. | 18,701 | |||||||||
2,105 | Rofin-Sinar Technologies, Inc.(a) | 53,046 | |||||||||
1,066 | Rogers Corp.(a) | 40,817 | |||||||||
4,326 | Silicon Image, Inc.(a) | 25,956 | |||||||||
7,478 | Spansion, Inc., Class A(a) | 90,185 | |||||||||
815 | Supertex, Inc.(a) | 16,683 | |||||||||
3,957 | Symmetricom, Inc.(a) | 22,001 | |||||||||
5,631 | Take-Two Interactive Software, Inc.(a) | 79,397 | |||||||||
2,702 | TeleTech Holdings, Inc.(a) | 40,935 | |||||||||
38,278 | Tellabs, Inc. | 144,308 | |||||||||
2,247 | TNS, Inc.(a) | 45,839 | |||||||||
22,086 | United Online, Inc. | 104,688 | |||||||||
356 | Viasystems Group, Inc.(a) | 7,935 | |||||||||
1,474 | Vishay Precision Group, Inc.(a) | 21,343 | |||||||||
5,618 | Westell Technologies, Inc., Class A(a) | 12,809 | |||||||||
4,808,692 | |||||||||||
Materials—6.1% | |||||||||||
3,696 | A. Schulman, Inc. | 90,959 | |||||||||
5,197 | A.M. Castle & Co.(a)(b) | 69,588 | |||||||||
868 | AEP Industries, Inc.(a) | 30,267 | |||||||||
12,156 | Boise, Inc. | 92,872 | |||||||||
2,604 | Carpenter Technology Corp. | 144,939 | |||||||||
11,064 | Century Aluminum Co.(a) | 101,789 | |||||||||
13,146 | Chemtura Corp.(a) | 223,745 | |||||||||
2,471 | Eagle Materials, Inc. | 87,029 | |||||||||
21,627 | Ferro Corp.(a) | 112,244 | |||||||||
3,887 | Georgia Gulf Corp.(a) | 137,794 | |||||||||
2,788 | Greif, Inc., Class A | 149,548 | |||||||||
3,322 | H.B. Fuller Co. | 109,294 | |||||||||
22,378 | Headwaters, Inc.(a) | 97,121 | |||||||||
1,420 | Innospec, Inc.(a) | 42,927 | |||||||||
2,894 | Landec Corp.(a) | 18,637 | |||||||||
15,224 | Louisiana-Pacific Corp.(a) | 137,777 | |||||||||
6,189 | Metals USA Holdings Corp.(a) | 93,330 | |||||||||
1,354 | Minerals Technologies, Inc. | 90,853 | |||||||||
3,254 | Myers Industries, Inc. | 53,789 | |||||||||
1,455 | Neenah Paper, Inc. | 41,555 | |||||||||
2,574 | Noranda Aluminum Holding Corp. | 27,336 | |||||||||
7,970 | Olin Corp. | 167,051 | |||||||||
1,571 | Olympic Steel, Inc. | 33,195 | |||||||||
5,717 | OM Group, Inc.(a) | 137,894 | |||||||||
7,850 | Omnova Solutions, Inc.(a) | 61,544 | |||||||||
5,775 | P.H. Glatfelter Co. | 89,975 | |||||||||
10,041 | PolyOne Corp. | 139,168 | |||||||||
3,337 | RTI International Metals, Inc.(a) | 81,923 | |||||||||
2,627 | Schnitzer Steel Industries, Inc., Class A | 104,738 |
See Notes to Financial Statements.
63
Schedule of Investments (Continued)
PowerShares Fundamental Pure Small Value Portfolio (PXSV)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
3,802 | Sensient Technologies Corp. | $ | 141,244 | ||||||||
5,295 | Spartech Corp.(a) | 25,840 | |||||||||
1,604 | Texas Industries, Inc.(b) | 53,910 | |||||||||
2,379 | Tredegar Corp. | 41,276 | |||||||||
6,698 | Wausau Paper Corp. | 60,684 | |||||||||
7,181 | Worthington Industries, Inc. | 128,109 | |||||||||
3,219,944 | |||||||||||
Telecommunication Services—0.9% | |||||||||||
3,940 | Consolidated Communications Holdings, Inc. | 76,239 | |||||||||
4,192 | General Communication, Inc., Class A(a) | 31,859 | |||||||||
1,796 | Hickorytech Corp. | 17,834 | |||||||||
5,635 | IDT Corp., Class B | 47,447 | |||||||||
1,166 | Otelco, Inc. | 6,961 | |||||||||
5,280 | Premiere Global Services, Inc.(a) | 47,256 | |||||||||
996 | Primus Telecommunications Group, Inc.(a) | 17,330 | |||||||||
2,702 | Shenandoah Telecommunications Co. | 30,127 | |||||||||
1,408 | SureWest Communications | 31,793 | |||||||||
1,963 | United States Cellular Corp.(a) | 76,989 | |||||||||
6,318 | USA Mobility, Inc. | 81,629 | |||||||||
465,464 | |||||||||||
Utilities—5.0% | |||||||||||
3,543 | ALLETE, Inc. | 146,007 | |||||||||
1,573 | American States Water Co. | 57,320 | |||||||||
6,800 | Avista Corp. | 179,792 | |||||||||
4,703 | Black Hills Corp. | 155,246 | |||||||||
3,781 | California Water Service Group | 68,474 | |||||||||
977 | Central Vermont Public Service Corp. | 34,439 | |||||||||
1,576 | CH Energy Group, Inc. | 103,417 | |||||||||
3,778 | El Paso Electric Co. | 115,758 | |||||||||
5,528 | Empire District Electric Co. (The) | 113,435 | |||||||||
4,843 | IDACORP, Inc. | 197,304 | |||||||||
2,493 | Laclede Group, Inc. (The) | 98,174 | |||||||||
2,054 | MGE Energy, Inc. | 93,950 | |||||||||
1,323 | Middlesex Water Co. | 24,555 | |||||||||
4,283 | New Jersey Resources Corp. | 185,197 | |||||||||
2,910 | Northwest Natural Gas Co. | 132,987 | |||||||||
4,388 | NorthWestern Corp. | 155,862 | |||||||||
5,568 | Otter Tail Corp. | 122,273 | |||||||||
1,426 | SJW Corp. | 34,367 | |||||||||
2,137 | South Jersey Industries, Inc. | 105,247 | |||||||||
4,745 | Southwest Gas Corp. | 199,385 | |||||||||
4,233 | UIL Holdings Corp. | 145,488 | |||||||||
4,522 | Unisource Energy Corp. | 164,601 | |||||||||
2,633,278 | |||||||||||
Total Common Stocks and Other Equity Interests (Cost $51,781,758) | 52,304,415 |
Number of Shares | Value | ||||||||||
Money Market Fund—0.1% | |||||||||||
37,810 | Goldman Sachs Financial Square Prime Obligations - Institutional Share Class (Cost $37,810) | $ | 37,810 | ||||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $51,819,568)—100.1% | 52,342,225 | ||||||||||
Investments Purchased with Cash Collateral from Securities on Loan | |||||||||||
Money Market Fund—4.2% | |||||||||||
2,205,136 | Invesco Liquid Assets Portfolio - Institutional Class (Cost $2,205,136)(c)(d) | 2,205,136 | |||||||||
Total Investments (Cost $54,024,704)—104.3% | 54,547,361 | ||||||||||
Liabilities in excess of other assets—(4.3%) | (2,235,776 | ) | |||||||||
Net Assets—100.0% | $ | 52,311,585 |
Investment Abbreviations:
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) All or a portion of this security was out on loan at April 30, 2012.
(c) The security and the Fund are advised by wholly owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.
(d) The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower's return of the securities loaned. See Note 2H.
See Notes to Financial Statements.
64
Schedule of Investments
PowerShares Zacks Micro Cap Portfolio (PZI)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.0% | |||||||||||
Consumer Discretionary—13.5% | |||||||||||
28,590 | 1-800-FLOWERS.COM, Inc., Class A(a) | $ | 85,198 | ||||||||
5,643 | American Greetings Corp., Class A | 90,288 | |||||||||
1,975 | America's Car-Mart, Inc.(a) | 90,732 | |||||||||
2,007 | Arctic Cat, Inc.(a) | 88,790 | |||||||||
3,215 | Asbury Automotive Group, Inc.(a) | 89,763 | |||||||||
1,832 | Ascent Capital Group, Inc., Class A(a) | 94,348 | |||||||||
9,383 | Bebe Stores, Inc. | 76,941 | |||||||||
6,655 | Benihana, Inc. | 91,772 | |||||||||
9,284 | Black Diamond, Inc.(a) | 92,190 | |||||||||
1,152 | Blyth, Inc. | 101,341 | |||||||||
11,040 | Boyd Gaming Corp.(a) | 84,898 | |||||||||
12,814 | Callaway Golf Co. | 78,550 | |||||||||
4,642 | Caribou Coffee Co., Inc.(a) | 76,175 | |||||||||
3,134 | Cato Corp. (The), Class A | 87,219 | |||||||||
14,573 | Charming Shoppes, Inc.(a) | 85,981 | |||||||||
5,650 | Conn's, Inc.(a) | 92,378 | |||||||||
2,116 | Core-Mark Holding Co., Inc. | 81,678 | |||||||||
20,922 | Corinthian Colleges, Inc.(a) | 80,340 | |||||||||
4,451 | CSS Industries, Inc. | 85,237 | |||||||||
5,264 | Delta Apparel, Inc.(a) | 75,328 | |||||||||
3,172 | Drew Industries, Inc.(a) | 94,462 | |||||||||
8,777 | E.W. Scripps Co. (The), Class A(a) | 80,397 | |||||||||
3,421 | Ethan Allen Interiors, Inc. | 79,367 | |||||||||
2,826 | Fisher Communications, Inc.(a) | 92,665 | |||||||||
5,920 | Fred's, Inc., Class A | 84,774 | |||||||||
8,554 | Hot Topic, Inc. | 83,829 | |||||||||
5,745 | La-Z-Boy, Inc.(a) | 86,577 | |||||||||
10,362 | LeapFrog Enterprises, Inc.(a) | 96,781 | |||||||||
3,281 | Lithia Motors, Inc., Class A | 88,029 | |||||||||
37,339 | LJ International, Inc. (British Virgin Islands)(a)(b) | 72,811 | |||||||||
14,164 | Luby's, Inc.(a) | 86,684 | |||||||||
6,900 | Marcus Corp. | 86,319 | |||||||||
3,598 | Movado Group, Inc. | 102,003 | |||||||||
7,844 | Multimedia Games Holding Co., Inc.(a) | 89,108 | |||||||||
1,691 | Oxford Industries, Inc. | 81,151 | |||||||||
21,435 | Quiksilver, Inc.(a) | 74,165 | |||||||||
10,549 | Red Lion Hotels Corp.(a) | 87,979 | |||||||||
2,311 | Red Robin Gourmet Burgers, Inc.(a) | 82,410 | |||||||||
9,276 | Rick's Cabaret International, Inc.(a) | 85,989 | |||||||||
6,316 | Rocky Brands, Inc.(a) | 89,371 | |||||||||
11,407 | Ruth's Hospitality Group, Inc.(a) | 78,936 | |||||||||
2,420 | Saga Communications, Inc., Class A(a) | 91,137 | |||||||||
4,001 | Shoe Carnival, Inc.(a) | 77,770 | |||||||||
11,095 | Smith & Wesson Holding Corp.(a) | 91,534 | |||||||||
4,602 | Speedway Motorsports, Inc. | 78,510 | |||||||||
5,334 | Stage Stores, Inc. | 81,450 | |||||||||
4,879 | Standard Motor Products, Inc. | 73,527 | |||||||||
3,465 | Steinway Musical Instruments, Inc.(a) | 87,353 | |||||||||
4,433 | Superior Industries International, Inc. | 75,849 | |||||||||
5,137 | Systemax, Inc.(a) | 88,202 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
6,402 | VOXX International Corp.(a) | $ | 81,241 | ||||||||
7,225 | West Marine, Inc.(a) | 84,605 | |||||||||
25,108 | Wet Seal, Inc. (The), Class A(a) | 82,605 | |||||||||
28,027 | Zale Corp.(a) | 76,794 | |||||||||
4,603,531 | |||||||||||
Consumer Staples—2.7% | |||||||||||
22,799 | Alliance One International, Inc.(a) | 80,708 | |||||||||
8,995 | Central Garden & Pet Co., Class A(a) | 96,156 | |||||||||
9,847 | Chiquita Brands International, Inc.(a) | 83,699 | |||||||||
7,577 | Coffee Holding Co., Inc.(b) | 71,754 | |||||||||
3,048 | Nash Finch Co. | 76,505 | |||||||||
11,374 | Omega Protein Corp.(a) | 81,438 | |||||||||
6,655 | Pantry, Inc. (The)(a) | 84,918 | |||||||||
3,289 | Seneca Foods Corp., Class A(a) | 76,601 | |||||||||
13,001 | Smart Balance, Inc.(a) | 76,706 | |||||||||
4,772 | Spartan Stores, Inc. | 86,994 | |||||||||
3,349 | Susser Holdings Corp.(a) | 89,385 | |||||||||
904,864 | |||||||||||
Energy—4.3% | |||||||||||
1,516 | Adams Resources & Energy, Inc. | 92,067 | |||||||||
10,601 | Capital Product Partners LP (Marshall Islands) | 92,653 | |||||||||
6,123 | Crosstex Energy, Inc. | 91,233 | |||||||||
5,210 | Energy Partners Ltd.(a) | 84,819 | |||||||||
8,028 | Green Plains Renewable Energy, Inc.(a) | 64,144 | |||||||||
2,936 | Gulf Island Fabrication, Inc. | 82,267 | |||||||||
18,307 | Hercules Offshore, Inc.(a) | 93,000 | |||||||||
20,582 | Miller Energy Resources, Inc.(a)(b) | 111,760 | |||||||||
3,829 | Mitcham Industries, Inc.(a) | 90,977 | |||||||||
10,571 | Newpark Resources, Inc.(a) | 67,232 | |||||||||
14,509 | Parker Drilling Co.(a) | 75,011 | |||||||||
3,742 | PHI, Inc.(a) | 99,649 | |||||||||
9,843 | Pioneer Drilling Co.(a) | 77,563 | |||||||||
4,082 | QR Energy LP | 76,537 | |||||||||
2,800 | REX American Resources Corp.(a) | 77,672 | |||||||||
14,574 | StealthGas, Inc. (Greece)(a) | 91,816 | |||||||||
9,163 | VAALCO Energy, Inc.(a) | 83,108 | |||||||||
1,451,508 | |||||||||||
Financials—36.3% | |||||||||||
3,540 | 1st Source Corp. | 80,323 | |||||||||
14,311 | 1st United Bancorp, Inc.(a) | 86,725 | |||||||||
3,836 | Agree Realty Corp. REIT | 87,461 | |||||||||
6,800 | American Equity Investment Life Holding Co. | 83,368 | |||||||||
4,560 | American Safety Insurance Holdings Ltd. (Bermuda)(a) | 86,321 | |||||||||
6,541 | Ameris Bancorp(a) | 81,108 | |||||||||
3,501 | AMERISAFE, Inc.(a) | 93,547 | |||||||||
5,535 | Apollo Commercial Real Estate Finance, Inc. REIT | 89,280 | |||||||||
3,902 | Arlington Asset Investment Corp., Class A | 91,736 |
See Notes to Financial Statements.
65
Schedule of Investments (Continued)
PowerShares Zacks Micro Cap Portfolio (PZI)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
12,827 | ARMOUR Residential REIT, Inc. REIT | $ | 89,532 | ||||||||
9,604 | Ashford Hospitality Trust, Inc. REIT | 82,018 | |||||||||
4,113 | Banco Latinoamericano de Comercio Exterior SA, Class E (Panama) | 85,756 | |||||||||
8,646 | Bancorp, Inc. (The)(a) | 88,794 | |||||||||
21,439 | Bank Mutual Corp. | 83,612 | |||||||||
3,341 | Bank of Kentucky Financial Corp. | 84,227 | |||||||||
3,943 | Banner Corp. | 86,549 | |||||||||
3,779 | Berkshire Hills Bancorp, Inc. | 85,746 | |||||||||
8,811 | BlackRock Kelso Capital Corp. | 85,026 | |||||||||
5,064 | BofI Holding, Inc.(a) | 89,987 | |||||||||
8,672 | Boston Private Financial Holdings, Inc. | 80,823 | |||||||||
9,238 | Brookline Bancorp, Inc. | 82,957 | |||||||||
6,598 | Calamos Asset Management, Inc., Class A | 85,246 | |||||||||
7,662 | Cardinal Financial Corp. | 92,480 | |||||||||
16,791 | Cedar Realty Trust, Inc. REIT | 87,649 | |||||||||
3,173 | Century Bancorp, Inc., Class A | 87,162 | |||||||||
3,696 | Chemical Financial Corp. | 81,571 | |||||||||
4,832 | Chesapeake Lodging Trust REIT | 87,459 | |||||||||
5,563 | Citizens Republic Bancorp, Inc.(a) | 93,848 | |||||||||
2,495 | City Holding Co. | 83,208 | |||||||||
5,284 | Colony Financial, Inc. REIT | 89,775 | |||||||||
2,701 | Community Trust Bancorp, Inc. | 86,297 | |||||||||
5,852 | Compass Diversified Holdings(b) | 85,907 | |||||||||
3,682 | Coresite Realty Corp.,REIT | 91,719 | |||||||||
31,956 | Cowen Group, Inc., Class A(a) | 80,529 | |||||||||
5,884 | Dime Community Bancshares | 81,552 | |||||||||
5,564 | Duff & Phelps Corp., Class A | 88,468 | |||||||||
9,066 | Dynex Capital, Inc. REIT | 85,492 | |||||||||
13,099 | Edelman Financial Group, Inc. | 115,664 | |||||||||
5,302 | eHealth, Inc.(a) | 93,951 | |||||||||
4,884 | Employers Holdings, Inc. | 84,591 | |||||||||
5,998 | ESB Financial Corp. | 80,553 | |||||||||
7,165 | Excel Trust, Inc. REIT | 85,908 | |||||||||
3,786 | Federal Agricultural Mortgage Corp., Class C | 86,548 | |||||||||
17,530 | First Busey Corp. | 81,339 | |||||||||
14,043 | First Commonwealth Financial Corp. | 90,296 | |||||||||
6,479 | First Community Bancshares, Inc. | 86,754 | |||||||||
5,150 | First Defiance Financial Corp. | 88,477 | |||||||||
2,728 | First Financial Corp. | 81,840 | |||||||||
7,865 | First Financial Holdings, Inc. | 90,762 | |||||||||
5,925 | First Interstate BancSystem, Inc. | 83,483 | |||||||||
7,040 | First Merchants Corp. | 86,803 | |||||||||
7,161 | First Potomac Realty Trust REIT | 89,083 | |||||||||
11,006 | Flagstone Reinsurance Holdings SA (Luxembourg) | 82,545 | |||||||||
6,434 | Flushing Financial Corp. | 83,835 | |||||||||
5,623 | Forestar Group, Inc.(a) | 86,482 | |||||||||
6,612 | Fox Chase Bancorp, Inc. | 84,105 | |||||||||
6,666 | FXCM, Inc., Class A | 77,192 | |||||||||
23,035 | GFI Group, Inc. | 76,015 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
11,442 | Gladstone Investment Corp. | $ | 84,900 | ||||||||
3,517 | Greenlight Capital Re Ltd., Class A (Cayman Islands)(a) | 87,573 | |||||||||
8,558 | Hanmi Financial Corp.(a) | 89,260 | |||||||||
7,818 | Hercules Technology Growth Capital, Inc. | 89,203 | |||||||||
13,496 | Heritage Commerce Corp.(a) | 90,963 | |||||||||
10,324 | Hilltop Holdings, Inc.(a) | 81,869 | |||||||||
3,255 | Home BancShares, Inc. | 94,851 | |||||||||
4,916 | Horace Mann Educators Corp. | 86,276 | |||||||||
5,207 | Horizon Technology Finance Corp. | 88,415 | |||||||||
5,721 | Hudson Pacific Properties, Inc. REIT | 90,563 | |||||||||
8,718 | Independence Holding Co. | 92,672 | |||||||||
3,015 | Independent Bank Corp. | 84,631 | |||||||||
1,655 | Infinity Property & Casualty Corp. | 88,394 | |||||||||
5,093 | Interactive Brokers Group, Inc., Class A | 77,261 | |||||||||
4,105 | INTL FCStone, Inc.(a) | 88,257 | |||||||||
11,855 | iStar Financial, Inc. REIT(a) | 82,037 | |||||||||
2,690 | Kansas City Life Insurance Co. | 87,533 | |||||||||
6,369 | Kennedy-Wilson Holdings, Inc. | 89,548 | |||||||||
3,328 | Lakeland Financial Corp. | 86,661 | |||||||||
9,619 | Maiden Holdings Ltd. (Bermuda) | 79,838 | |||||||||
3,490 | Main Street Capital Corp. | 89,379 | |||||||||
7,130 | MainSource Financial Group, Inc. | 83,350 | |||||||||
5,752 | Marlin Business Services Corp. | 84,439 | |||||||||
9,275 | Meadowbrook Insurance Group, Inc. | 81,898 | |||||||||
7,753 | Medallion Financial Corp. | 84,740 | |||||||||
7,410 | Metro Bancorp, Inc.(a) | 85,734 | |||||||||
8,779 | Mission West Properties, Inc. REIT | 77,080 | |||||||||
6,589 | MVC Capital, Inc. | 86,975 | |||||||||
5,716 | National Financial Partners Corp.(a) | 84,311 | |||||||||
628 | National Western Life Insurance Co., Class A | 85,446 | |||||||||
1,819 | Navigators Group, Inc. (The)(a) | 86,402 | |||||||||
3,923 | NBT Bancorp, Inc. | 80,618 | |||||||||
7,790 | NewStar Financial, Inc.(a) | 92,467 | |||||||||
6,565 | Nicholas Financial, Inc. (Canada) | 86,855 | |||||||||
16,004 | NorthStar Realty Finance Corp. REIT | 91,223 | |||||||||
4,474 | Omniamerican Bancorp, Inc.(a) | 89,704 | |||||||||
4,730 | One Liberty Properties, Inc. REIT | 89,444 | |||||||||
7,152 | Oriental Financial Group, Inc. | 84,537 | |||||||||
5,896 | Oritani Financial Corp. | 87,379 | |||||||||
8,257 | Parkway Properties, Inc. REIT | 81,662 | |||||||||
8,319 | PennantPark Investment Corp. | 86,934 | |||||||||
5,628 | Pennsylvania Real Estate Investment Trust REIT | 79,299 | |||||||||
4,637 | PennyMac Mortgage Investment Trust REIT | 94,085 | |||||||||
4,949 | Peoples Bancorp, Inc. | 91,012 | |||||||||
35,354 | Phoenix Cos., Inc. (The)(a) | 74,243 | |||||||||
3,694 | PICO Holdings, Inc.(a) | 88,693 | |||||||||
4,683 | Pinnacle Financial Partners, Inc.(a) | 85,699 | |||||||||
3,262 | Piper Jaffray Companies, Inc.(a) | 79,103 | |||||||||
7,573 | Presidential Life Corp. | 87,695 | |||||||||
7,944 | Provident Financial Holdings, Inc. | 85,716 |
See Notes to Financial Statements.
66
Schedule of Investments (Continued)
PowerShares Zacks Micro Cap Portfolio (PZI)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
10,230 | Provident New York Bancorp | $ | 86,341 | ||||||||
19,910 | Radian Group, Inc.(b) | 62,119 | |||||||||
7,089 | Ramco-Gershenson Properties Trust REIT | 85,352 | |||||||||
5,314 | Renasant Corp. | 85,024 | |||||||||
3,621 | Republic Bancorp, Inc., Class A | 85,202 | |||||||||
16,072 | Resource Capital Corp. REIT | 86,789 | |||||||||
7,193 | Retail Opportunity Investments Corp. REIT | 87,395 | |||||||||
7,431 | Rockville Financial, Inc. | 87,017 | |||||||||
3,994 | S&T Bancorp, Inc. | 74,768 | |||||||||
5,029 | Safeguard Scientifics, Inc.(a) | 82,274 | |||||||||
2,080 | Safety Insurance Group, Inc. | 82,888 | |||||||||
4,758 | Sandy Spring Bancorp, Inc. | 85,692 | |||||||||
2,648 | SCBT Financial Corp. | 91,065 | |||||||||
3,328 | Simmons First National Corp., Class A | 81,004 | |||||||||
4,083 | Southside Bancshares, Inc. | 83,293 | |||||||||
6,108 | Stewart Information Services Corp. | 89,910 | |||||||||
11,418 | Summit Hotel Properties, Inc. REIT | 95,454 | |||||||||
15,138 | SWS Group, Inc. | 85,378 | |||||||||
6,028 | Taylor Capital Group, Inc.(a) | 83,910 | |||||||||
3,002 | Tejon Ranch Co.(a) | 89,640 | |||||||||
4,131 | Territorial Bancorp, Inc. | 89,725 | |||||||||
2,162 | Tompkins Financial Corp. | 81,832 | |||||||||
6,413 | TowneBank | 83,497 | |||||||||
4,385 | Triangle Capital Corp. | 88,621 | |||||||||
6,182 | Union First Market Bankshares Corp. | 86,301 | |||||||||
8,877 | United Community Banks, Inc.(a) | 83,533 | |||||||||
4,840 | United Fire Group, Inc. | 83,345 | |||||||||
5,588 | ViewPoint Financial Group | 88,905 | |||||||||
9,856 | Virginia Commerce Bancorp, Inc.(a) | 77,172 | |||||||||
1,010 | Virtus Investment Partners, Inc.(a) | 85,244 | |||||||||
3,841 | Walter Investment Management Corp. | 77,703 | |||||||||
4,301 | WesBanco, Inc. | 88,084 | |||||||||
8,662 | West Bancorporation, Inc. | 83,155 | |||||||||
4,544 | West Coast Bancorp(a) | 88,790 | |||||||||
10,150 | Western Alliance Bancorp(a) | 89,117 | |||||||||
7,473 | Winthrop Realty Trust REIT | 79,737 | |||||||||
12,361,587 | |||||||||||
Health Care—7.3% | |||||||||||
20,278 | Affymetrix, Inc.(a) | 89,629 | |||||||||
1,273 | Analogic Corp. | 86,831 | |||||||||
7,067 | AngioDynamics, Inc.(a) | 87,489 | |||||||||
6,925 | Anika Therapeutics, Inc.(a) | 118,140 | |||||||||
12,661 | BioScrip, Inc.(a) | 93,818 | |||||||||
3,462 | Cantel Medical Corp. | 81,288 | |||||||||
4,813 | Cynosure, Inc., Class A(a) | 99,485 | |||||||||
3,533 | Greatbatch, Inc.(a) | 82,284 | |||||||||
28,875 | Hansen Medical, Inc.(a) | 91,245 | |||||||||
3,744 | HealthStream, Inc.(a) | 85,812 | |||||||||
2,411 | Hi-Tech Pharmacal Co., Inc.(a) | 78,574 | |||||||||
1,762 | ICU Medical, Inc.(a) | 92,487 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
15,092 | Maxygen, Inc.(a) | $ | 85,270 | ||||||||
9,172 | Metropolitan Health Networks, Inc.(a) | 68,607 | |||||||||
5,654 | Momenta Pharmaceuticals, Inc.(a) | 89,786 | |||||||||
1,901 | National Healthcare Corp. | 86,686 | |||||||||
5,693 | Omnicell, Inc.(a) | 81,239 | |||||||||
6,963 | PharMerica Corp.(a) | 82,651 | |||||||||
12,369 | QLT, Inc. (Canada)(a) | 82,378 | |||||||||
10,758 | Rigel Pharmaceuticals, Inc.(a) | 83,159 | |||||||||
23,405 | RTI Biologics, Inc.(a) | 81,917 | |||||||||
13,729 | Sciclone Pharmaceuticals, Inc.(a) | 82,237 | |||||||||
28,588 | Solta Medical, Inc.(a) | 92,911 | |||||||||
8,330 | Spectranetics Corp.(a) | 87,382 | |||||||||
6,853 | Spectrum Pharmaceuticals, Inc.(a)(b) | 72,847 | |||||||||
12,250 | Symmetry Medical, Inc.(a) | 87,098 | |||||||||
3,720 | Triple-S Management Corp., Class B(a) | 78,343 | |||||||||
25,476 | Vical, Inc.(a) | 79,485 | |||||||||
4,477 | Wright Medical Group, Inc.(a) | 83,407 | |||||||||
2,492,485 | |||||||||||
Industrials—16.9% | |||||||||||
7,909 | Acorn Energy, Inc. | 98,783 | |||||||||
12,529 | Aegean Marine Petroleum Network, Inc. (Greece) | 89,582 | |||||||||
6,386 | Ameresco, Inc., Class A(a) | 77,845 | |||||||||
3,685 | American Railcar Industries, Inc.(a) | 99,421 | |||||||||
6,679 | Apogee Enterprises, Inc. | 102,589 | |||||||||
5,401 | Argan, Inc. | 78,747 | |||||||||
4,598 | Arkansas Best Corp. | 70,533 | |||||||||
10,596 | Asta Funding, Inc. | 89,854 | |||||||||
1,665 | AZZ, Inc. | 86,097 | |||||||||
1,728 | Cascade Corp. | 81,337 | |||||||||
13,701 | CBIZ, Inc.(a) | 83,165 | |||||||||
4,829 | CDI Corp. | 85,667 | |||||||||
5,566 | Celadon Group, Inc. | 86,997 | |||||||||
2,660 | Ceradyne, Inc. | 67,351 | |||||||||
5,415 | China Yuchai International Ltd. (Bermuda) | 76,731 | |||||||||
9,669 | Diana Shipping, Inc. (Greece)(a) | 75,998 | |||||||||
9,504 | Dolan Co. (The)(a) | 76,127 | |||||||||
1,978 | DXP Enterprises, Inc.(a) | 85,786 | |||||||||
3,708 | Dycom Industries, Inc.(a) | 86,730 | |||||||||
5,379 | Echo Global Logistics, Inc.(a) | 91,604 | |||||||||
2,914 | Encore Wire Corp. | 74,278 | |||||||||
5,476 | Ennis, Inc. | 86,302 | |||||||||
2,920 | G&K Services, Inc., Class A | 95,951 | |||||||||
13,620 | Genco Shipping & Trading Ltd.(a)(b) | 72,867 | |||||||||
5,711 | Gibraltar Industries, Inc.(a) | 77,213 | |||||||||
3,104 | Global Power Equipment Group, Inc.(a) | 77,631 | |||||||||
11,990 | Great Lakes Dredge & Dock Corp. | 88,846 | |||||||||
8,119 | Griffon Corp. | 80,459 | |||||||||
4,591 | H&E Equipment Services, Inc.(a) | 88,606 | |||||||||
9,157 | Hardinge, Inc. | 103,291 | |||||||||
16,094 | Hudson Global, Inc.(a) | 87,551 |
See Notes to Financial Statements.
67
Schedule of Investments (Continued)
PowerShares Zacks Micro Cap Portfolio (PZI)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
3,066 | Hurco Cos., Inc.(a) | $ | 80,728 | ||||||||
3,414 | ICF International, Inc.(a) | 85,145 | |||||||||
7,454 | InnerWorkings, Inc.(a) | 85,796 | |||||||||
3,977 | Interline Brands, Inc.(a) | 83,676 | |||||||||
3,752 | International Shipholding Corp. | 79,392 | |||||||||
3,609 | Kadant, Inc.(a) | 93,365 | |||||||||
5,417 | Kelly Services, Inc., Class A | 75,784 | |||||||||
12,536 | Kimball International, Inc., Class B | 85,621 | |||||||||
3,893 | Layne Christensen Co.(a) | 80,001 | |||||||||
8,494 | Lydall, Inc.(a) | 89,612 | |||||||||
3,925 | Marten Transport Ltd. | 82,700 | |||||||||
2,698 | McGrath Rentcorp | 79,375 | |||||||||
11,258 | MFC Industrial Ltd. (Canada) | 84,210 | |||||||||
5,118 | Miller Industries, Inc. | 83,935 | |||||||||
3,608 | Mistras Group, Inc.(a) | 84,680 | |||||||||
3,848 | Multi-Color Corp. | 82,039 | |||||||||
6,179 | Navigant Consulting, Inc.(a) | 86,012 | |||||||||
20,625 | Navios Maritime Holdings, Inc. (Greece) | 78,787 | |||||||||
4,078 | Northwest Pipe Co.(a) | 84,863 | |||||||||
4,967 | On Assignment, Inc.(a) | 92,933 | |||||||||
13,706 | Pacer International, Inc.(a) | 82,373 | |||||||||
33,180 | Pendrell Corp.(a) | 44,793 | |||||||||
5,386 | Primoris Services Corp. | 77,666 | |||||||||
17,403 | Republic Airways Holdings, Inc.(a) | 88,581 | |||||||||
5,002 | Roadrunner Transportation Systems, Inc.(a) | 86,785 | |||||||||
4,082 | Rush Enterprises, Inc., Class A(a) | 73,803 | |||||||||
5,103 | Saia, Inc.(a) | 95,834 | |||||||||
5,036 | SeaCube Container Leasing Ltd. (Bermuda) | 93,418 | |||||||||
9,023 | Sparton Corp.(a) | 90,230 | |||||||||
2,108 | Standex International Corp. | 92,879 | |||||||||
5,478 | Sykes Enterprises, Inc.(a) | 86,826 | |||||||||
2,799 | Team, Inc.(a) | 82,934 | |||||||||
3,048 | Titan Machinery, Inc.(a) | 108,600 | |||||||||
5,555 | Tutor Perini Corp.(a) | 84,492 | |||||||||
2,512 | Universal Forest Products, Inc. | 93,949 | |||||||||
4,457 | Viad Corp. | 80,583 | |||||||||
5,148 | XPO Logistics, Inc.(a) | 85,508 | |||||||||
5,751,847 | |||||||||||
Information Technology—12.1% | |||||||||||
13,794 | Actuate Corp.(a) | 97,937 | |||||||||
9,633 | Agilysys, Inc.(a) | 84,385 | |||||||||
3,718 | ATMI, Inc.(a) | 78,115 | |||||||||
7,045 | Brooks Automation, Inc. | 82,849 | |||||||||
4,885 | Chipmos Technologies Bermuda Ltd. (Bermuda)(a) | 65,459 | |||||||||
20,430 | CIBER, Inc.(a) | 84,989 | |||||||||
2,666 | Comtech Telecommunications Corp. | 82,433 | |||||||||
11,825 | Cray, Inc.(a) | 131,849 | |||||||||
9,122 | Datalink Corp.(a) | 92,862 | |||||||||
7,880 | Digi International, Inc.(a) | 73,126 | |||||||||
5,768 | Electro Scientific Industries, Inc. | 82,252 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
7,152 | EPIQ Systems, Inc. | $ | 81,247 | ||||||||
2,688 | ePlus, Inc.(a) | 79,726 | |||||||||
10,307 | Exar Corp.(a) | 81,631 | |||||||||
12,270 | EXFO, Inc. (Canada)(a) | 87,485 | |||||||||
10,469 | Frequency Electronics, Inc.(a) | 80,088 | |||||||||
11,020 | Global Cash Access Holdings, Inc.(a) | 93,119 | |||||||||
5,982 | Globecomm Systems, Inc.(a) | 84,825 | |||||||||
14,509 | Hackett Group, Inc. (The)(a) | 82,846 | |||||||||
14,486 | ID Systems, Inc.(a) | 87,785 | |||||||||
13,984 | Imation Corp.(a) | 81,107 | |||||||||
6,706 | InfoSpace, Inc.(a) | 74,638 | |||||||||
7,779 | Integrated Silicon Solution, Inc.(a) | 82,613 | |||||||||
11,828 | Internap Network Services Corp.(a) | 83,269 | |||||||||
24,464 | inTEST Corp.(a) | 85,624 | |||||||||
6,563 | IXYS Corp.(a) | 81,775 | |||||||||
4,377 | Keynote Systems, Inc. | 80,537 | |||||||||
35,061 | Majesco Entertainment Co.(a)(b) | 85,900 | |||||||||
16,038 | ModusLink Global Solutions, Inc. | 79,388 | |||||||||
4,404 | Monolithic Power Systems, Inc.(a) | 91,251 | |||||||||
3,163 | Multi-Fineline Electronix, Inc.(a) | 83,788 | |||||||||
4,884 | Newport Corp.(a) | 83,370 | |||||||||
10,529 | PC Connection, Inc. | 84,443 | |||||||||
13,017 | PC-Tel, Inc. | 88,906 | |||||||||
14,453 | Pervasive Software, Inc.(a) | 89,464 | |||||||||
13,022 | Photronics, Inc.(a) | 80,606 | |||||||||
7,223 | Richardson Electronics Ltd. | 91,082 | |||||||||
7,734 | Rudolph Technologies, Inc.(a) | 83,527 | |||||||||
11,134 | SeaChange International, Inc.(a) | 91,522 | |||||||||
22,920 | SMTC Corp.(a) | 89,159 | |||||||||
3,107 | Stamps.com, Inc.(a) | 90,196 | |||||||||
3,348 | Standard Microsystems Corp.(a) | 88,655 | |||||||||
4,959 | Super Micro Computer, Inc.(a) | 87,526 | |||||||||
4,873 | Sycamore Networks, Inc.(a) | 75,970 | |||||||||
31,160 | TeleCommunication Systems, Inc., Class A(a) | 60,139 | |||||||||
3,410 | Tessco Technologies, Inc. | 68,200 | |||||||||
17,713 | United Online, Inc. | 83,960 | |||||||||
5,995 | Web.com Group, Inc.(a) | 77,635 | |||||||||
5,445 | Xyratex Ltd. (Bermuda) | 79,061 | |||||||||
4,118,319 | |||||||||||
Materials—4.6% | |||||||||||
3,179 | A. Schulman, Inc. | 78,235 | |||||||||
3,966 | American Vanguard Corp. | 99,150 | |||||||||
10,471 | Boise, Inc. | 79,999 | |||||||||
9,414 | Core Molding Technologies, Inc.(a) | 78,230 | |||||||||
2,851 | Innospec, Inc.(a) | 86,186 | |||||||||
18,546 | Jaguar Mining, Inc. (Canada)(a) | 50,260 | |||||||||
4,407 | KapStone Paper and Packaging Corp.(a) | 79,590 | |||||||||
13,266 | Landec Corp.(a) | 85,433 | |||||||||
10,499 | Material Sciences Corp.(a) | 80,212 | |||||||||
5,885 | Myers Industries, Inc. | 97,279 |
See Notes to Financial Statements.
68
Schedule of Investments (Continued)
PowerShares Zacks Micro Cap Portfolio (PZI)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
2,919 | Neenah Paper, Inc. | $ | 83,367 | ||||||||
3,609 | Olympic Steel, Inc. | 76,258 | |||||||||
5,484 | P.H. Glatfelter Co. | 85,441 | |||||||||
11,131 | Richmont Mines, Inc. (Canada)(a) | 77,694 | |||||||||
3,757 | RTI International Metals, Inc.(a) | 92,234 | |||||||||
1,959 | TPC Group, Inc.(a) | 82,239 | |||||||||
4,422 | Tredegar Corp. | 76,722 | |||||||||
2,012 | Universal Stainless & Alloy Products, Inc.(a) | 93,357 | |||||||||
9,254 | Wausau Paper Corp. | 83,841 | |||||||||
1,565,727 | |||||||||||
Telecommunication Services—1.0% | |||||||||||
9,812 | Iridium Communications, Inc.(a) | 86,247 | |||||||||
22,322 | ORBCOMM, Inc.(a) | 72,770 | |||||||||
9,580 | Premiere Global Services, Inc.(a) | 85,741 | |||||||||
6,215 | USA Mobility, Inc. | 80,298 | |||||||||
325,056 | |||||||||||
Utilities—1.3% | |||||||||||
2,397 | American States Water Co. | 87,346 | |||||||||
4,752 | California Water Service Group | 86,059 | |||||||||
2,090 | Chesapeake Utilities Corp. | 87,822 | |||||||||
3,992 | Otter Tail Corp. | 87,664 | |||||||||
3,237 | Unitil Corp. | 85,651 | |||||||||
434,542 | |||||||||||
Total Common Stocks and Other Equity Interests (Cost $31,823,476) | 34,009,466 | ||||||||||
Money Market Fund—0.3% | |||||||||||
104,290 | Goldman Sachs Financial Square Prime Obligations - Institutional Share Class (Cost $104,290) | 104,290 | |||||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $31,927,766)—100.3% | 34,113,756 | ||||||||||
Investments Purchased with Cash Collateral from Securities on Loan—1.3% | |||||||||||
433,425 | Invesco Liquid Assets Portfolio - Institutional Class (Cost $433,425)(c)(d) | 433,425 | |||||||||
Total Investments (Cost $32,361,191)—101.6% | 34,547,181 | ||||||||||
Liabilities in excess of other assets—(1.6%) | (528,474 | ) | |||||||||
Net Assets—100.0% | $ | 34,018,707 |
Investment Abbreviations:
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) All or a portion of this security was out on loan at April 30, 2012.
(c) The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower's return of the securities loaned. See Note 2H.
(d) The security and the Fund are advised by wholly owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.
See Notes to Financial Statements.
69
Statements of Assets and Liabilities
April 30, 2012
PowerShares Dynamic Large Cap Growth Portfolio (PWB) | PowerShares Dynamic Large Cap Value Portfolio (PWV) | PowerShares Fundamental Pure Large Core Portfolio (PXLC) | PowerShares Fundamental Pure Large Growth Portfolio (PXLG) | PowerShares Fundamental Pure Large Value Portfolio (PXLV) | PowerShares Fundamental Pure Mid Core Portfolio (PXMC) | ||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Unaffiliated investments, at value(a) | $ | 191,135,522 | $ | 419,633,304 | $ | 25,374,238 | $ | 4,522,102 | $ | 8,230,712 | $ | 18,699,198 | |||||||||||||||
Affiliated investments, at value (Note 4) | — | — | — | — | — | — | |||||||||||||||||||||
Investment of securities lending collateral in affiliated money market fund, at value (Note 2H) | — | — | — | — | — | — | |||||||||||||||||||||
Total investments, at value | 191,135,522 | 419,633,304 | 25,374,238 | 4,522,102 | 8,230,712 | 18,699,198 | |||||||||||||||||||||
Cash | — | — | — | — | — | — | |||||||||||||||||||||
Foreign currencies, at value | — | — | — | — | — | — | |||||||||||||||||||||
Receivables: | |||||||||||||||||||||||||||
Dividends | 136,381 | 653,512 | 46,739 | 5,710 | 6,709 | 11,521 | |||||||||||||||||||||
Investments sold | — | 3,065,846 | — | — | — | — | |||||||||||||||||||||
Affiliated securities lending dividends | — | — | — | — | — | — | |||||||||||||||||||||
Expense waivers | — | — | 9,808 | — | — | 10,750 | |||||||||||||||||||||
Prepaid expenses | — | — | — | 458 | 1,092 | — | |||||||||||||||||||||
Total Assets | 191,271,903 | 423,352,662 | 25,430,785 | 4,528,270 | 8,238,513 | 18,721,469 | |||||||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||||||
Due to custodian | 1,873 | 142,714 | 1,050 | 941 | 966 | 1,031 | |||||||||||||||||||||
Payables: | |||||||||||||||||||||||||||
Expenses recaptured | 329 | — | — | 14,762 | 10,694 | — | |||||||||||||||||||||
Investments purchased | — | 3,085,125 | — | — | — | — | |||||||||||||||||||||
Collateral upon return of securities loaned | — | — | — | — | — | — | |||||||||||||||||||||
Accrued advisory fees | 78,675 | 172,466 | 5,939 | 955 | 1,942 | 4,465 | |||||||||||||||||||||
Accrued expenses | 177,843 | 211,963 | 97,769 | 71,596 | 76,496 | 93,228 | |||||||||||||||||||||
Total Liabilities | 258,720 | 3,612,268 | 104,758 | 88,254 | 90,098 | 98,724 | |||||||||||||||||||||
NET ASSETS | $ | 191,013,183 | $ | 419,740,394 | $ | 25,326,027 | $ | 4,440,016 | $ | 8,148,415 | $ | 18,622,745 | |||||||||||||||
NET ASSETS CONSIST OF: | |||||||||||||||||||||||||||
Shares of beneficial interest | $ | 410,649,223 | $ | 507,930,325 | $ | 34,738,671 | $ | 4,247,920 | $ | 7,635,006 | $ | 29,019,176 | |||||||||||||||
Undistributed net investment income | 288,421 | 1,375,238 | 69,720 | 16,149 | 17,915 | 33,461 | |||||||||||||||||||||
Undistributed net realized gain (loss) | (258,025,534 | ) | (128,969,638 | ) | (11,102,818 | ) | (11,346 | ) | (10,085 | ) | (10,539,132 | ) | |||||||||||||||
Net unrealized appreciation (depreciation) | 38,101,073 | 39,404,469 | 1,620,454 | 187,293 | 505,579 | 109,240 | |||||||||||||||||||||
Net Assets | $ | 191,013,183 | $ | 419,740,394 | $ | 25,326,027 | $ | 4,440,016 | $ | 8,148,415 | $ | 18,622,745 | |||||||||||||||
Shares outstanding (unlimited amount authorized, $0.01 par value) | 10,200,000 | 20,250,000 | 950,000 | 200,001 | 400,001 | 700,000 | |||||||||||||||||||||
Net asset value | $ | 18.73 | $ | 20.73 | $ | 26.66 | $ | 22.20 | $ | 20.37 | $ | 26.60 | |||||||||||||||
Share price | $ | 18.72 | $ | 20.71 | $ | 26.66 | $ | 22.19 | $ | 20.35 | $ | 26.62 | |||||||||||||||
Unaffiliated investments, at cost | $ | 153,034,449 | $ | 380,228,835 | $ | 23,753,784 | $ | 4,334,809 | $ | 7,725,133 | $ | 18,589,958 | |||||||||||||||
Affiliated investments, at cost | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Investment of securities lending collateral in affiliated money market fund, at cost | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
Total investments, at cost | $ | 153,034,449 | $ | 380,228,835 | $ | 23,753,784 | $ | 4,334,809 | $ | 7,725,133 | $ | 18,589,958 | |||||||||||||||
Foreign currencies, at cost | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||
(a)Includes securities on loan with an aggregate value of | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — |
See Notes to Financial Statements.
70
PowerShares Fundamental Pure Mid Growth Portfolio (PXMG) | PowerShares Fundamental Pure Mid Value Portfolio (PXMV) | PowerShares Fundamental Pure Small Core Portfolio (PXSC) | PowerShares Fundamental Pure Small Growth Portfolio (PXSG) | PowerShares Fundamental Pure Small Value Portfolio (PXSV) | PowerShares Zacks Micro Cap Portfolio (PZI) | ||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||
Unaffiliated investments, at value(a) | $ | 86,498,389 | $ | 32,495,830 | $ | 15,817,830 | $ | 30,869,479 | $ | 52,342,225 | $ | 34,113,756 | |||||||||||||||
Affiliated investments, at value (Note 4) | 817,932 | — | — | 118,629 | — | — | |||||||||||||||||||||
Investment of securities lending collateral in affiliated money market fund, at value (Note 2H) | — | — | — | — | 2,205,136 | 433,425 | |||||||||||||||||||||
Total investments, at value | 87,316,321 | 32,495,830 | 15,817,830 | 30,988,108 | 54,547,361 | 34,547,181 | |||||||||||||||||||||
Cash | — | — | — | — | 56,451 | — | |||||||||||||||||||||
Foreign currencies, at value | — | — | — | — | — | 25,551 | |||||||||||||||||||||
Receivables: | |||||||||||||||||||||||||||
Dividends | 19,204 | 28,079 | 5,211 | 16,678 | 20,754 | 12,594 | |||||||||||||||||||||
Investments sold | — | 21,074 | — | 22,738 | 109,301 | 1,939 | |||||||||||||||||||||
Affiliated securities lending dividends | — | — | — | — | 4,991 | 1,834 | |||||||||||||||||||||
Expense waivers | 17,195 | 9,088 | 10,829 | 11,899 | 11,381 | 7,026 | |||||||||||||||||||||
Prepaid expenses | — | — | — | 6,329 | — | — | |||||||||||||||||||||
Total Assets | 87,352,720 | 32,554,071 | 15,833,870 | 31,045,752 | 54,750,239 | 34,596,125 | |||||||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||||||
Due to custodian | 1,387 | 1,087 | 1,004 | 1,090 | — | 1,097 | |||||||||||||||||||||
Payables: | |||||||||||||||||||||||||||
Expenses recaptured | — | — | — | — | — | — | |||||||||||||||||||||
Investments purchased | — | 40,758 | — | 30,193 | 114,193 | — | |||||||||||||||||||||
Collateral upon return of securities loaned | — | — | — | — | 2,205,136 | 433,425 | |||||||||||||||||||||
Accrued advisory fees | 21,314 | 7,635 | 3,711 | 7,511 | 12,361 | 13,928 | |||||||||||||||||||||
Accrued expenses | 126,617 | 96,882 | 94,108 | 94,307 | 106,964 | 128,968 | |||||||||||||||||||||
Total Liabilities | 149,318 | 146,362 | 98,823 | 133,101 | 2,438,654 | 577,418 | |||||||||||||||||||||
NET ASSETS | $ | 87,203,402 | $ | 32,407,709 | $ | 15,735,047 | $ | 30,912,651 | $ | 52,311,585 | $ | 34,018,707 | |||||||||||||||
NET ASSETS CONSIST OF: | |||||||||||||||||||||||||||
Shares of beneficial interest | $ | 255,986,399 | $ | 77,073,830 | $ | 25,097,369 | $ | 81,195,844 | $ | 98,510,567 | $ | 123,058,370 | |||||||||||||||
Undistributed net investment income | 234,876 | 74,376 | 42,632 | 212,664 | 138,629 | 59,046 | |||||||||||||||||||||
Undistributed net realized gain (loss) | (170,775,602 | ) | (45,491,279 | ) | (9,683,817 | ) | (50,256,109 | ) | (46,860,268 | ) | (91,283,798 | ) | |||||||||||||||
Net unrealized appreciation (depreciation) | 1,757,729 | 750,782 | 278,863 | (239,748 | ) | 522,657 | 2,185,089 | ||||||||||||||||||||
Net Assets | $ | 87,203,402 | $ | 32,407,709 | $ | 15,735,047 | $ | 30,912,651 | $ | 52,311,585 | $ | 34,018,707 | |||||||||||||||
Shares outstanding (unlimited amount authorized, $0.01 par value) | 3,850,000 | 1,900,000 | 650,000 | 1,750,000 | 3,200,000 | 3,000,000 | |||||||||||||||||||||
Net asset value | $ | 22.65 | $ | 17.06 | $ | 24.21 | $ | 17.66 | $ | 16.35 | $ | 11.34 | |||||||||||||||
Share price | $ | 22.63 | $ | 17.04 | $ | 24.18 | $ | 17.64 | $ | 16.33 | $ | 11.32 | |||||||||||||||
Unaffiliated investments, at cost | $ | 84,697,854 | $ | 31,745,048 | $ | 15,538,967 | $ | 31,105,279 | $ | 51,819,568 | $ | 31,927,766 | |||||||||||||||
Affiliated investments, at cost | $ | 860,738 | $ | — | $ | — | $ | 122,577 | $ | — | $ | — | |||||||||||||||
Investment of securities lending collateral in affiliated money market fund, at cost | $ | — | $ | — | $ | — | $ | — | $ | 2,205,136 | $ | 433,425 | |||||||||||||||
Total investments, at cost | $ | 85,558,592 | $ | 31,745,048 | $ | 15,538,967 | $ | 31,227,856 | $ | 54,024,704 | $ | 32,361,191 | |||||||||||||||
Foreign currencies, at cost | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 26,452 | |||||||||||||||
(a)Includes securities on loan with an aggregate value of | $ | — | $ | — | $ | — | $ | — | $ | 2,181,583 | $ | 385,195 |
71
Statements of Operations
PowerShares Dynamic Large Cap Growth Portfolio (PWB) | PowerShares Dynamic Large Cap Value Portfolio (PWV) | PowerShares Fundamental Pure Large Core Portfolio (PXLC) | PowerShares Fundamental Pure Large Growth Portfolio (PXLG) | PowerShares Fundamental Pure Large Value Portfolio (PXLV) | PowerShares Fundamental Pure Mid Core Portfolio (PXMC) | ||||||||||||||||||||||
Year Ended April 30, 2012 | Year Ended April 30, 2012 | Year Ended April 30, 2012 | For the Period June 13, 2011(a) to April 30, 2012 | For the Period June 13, 2011(a) to April 30, 2012 | Year Ended April 30, 2012 | ||||||||||||||||||||||
INVESTMENT INCOME: | |||||||||||||||||||||||||||
Unaffiliated dividend income | $ | 2,660,076 | $ | 11,926,471 | $ | 708,825 | $ | 41,612 | $ | 174,791 | $ | 329,112 | |||||||||||||||
Affiliated dividend income (Note 4) | — | — | — | — | — | — | |||||||||||||||||||||
Affiliated securities lending income | — | — | — | — | — | — | |||||||||||||||||||||
Foreign withholding tax | — | — | — | — | — | — | |||||||||||||||||||||
Total Income | 2,660,076 | 11,926,471 | 708,825 | 41,612 | 174,791 | 329,112 | |||||||||||||||||||||
EXPENSES: | |||||||||||||||||||||||||||
Advisory fees | 886,741 | 2,000,070 | 83,679 | 6,243 | 18,319 | 66,242 | |||||||||||||||||||||
Accounting & administration fees | 67,460 | 94,429 | 67,460 | 61,775 | 61,775 | 67,460 | |||||||||||||||||||||
Recapture (Note 3) | 42,591 | 1,163 | — | 27,161 | 23,238 | — | |||||||||||||||||||||
Sub-licensing | 53,205 | 120,005 | 16,535 | 1,490 | 4,406 | 13,982 | |||||||||||||||||||||
Professional fees | 40,794 | 48,043 | 30,684 | 32,299 | 32,300 | 29,945 | |||||||||||||||||||||
Custodian & transfer agent fees | 15,158 | 34,360 | 12,149 | 8,419 | 10,711 | 12,710 | |||||||||||||||||||||
Trustees fees | 9,672 | 16,016 | 5,827 | 4,000 | 4,073 | 5,690 | |||||||||||||||||||||
Listing fee and expenses | 7,666 | 7,667 | 7,666 | 11,317 | 11,317 | 7,666 | |||||||||||||||||||||
Printing | (23,544 | ) | 29,687 | 4,096 | 10,442 | 12,500 | 3,785 | ||||||||||||||||||||
Other expenses | 5,512 | 10,274 | 2,666 | 2,368 | 2,432 | 2,588 | |||||||||||||||||||||
Total Expenses | 1,105,255 | 2,361,714 | 230,762 | 165,514 | 181,071 | 210,068 | |||||||||||||||||||||
Waivers | (16,591 | ) | — | (119,199 | ) | (157,117 | ) | (156,434 | ) | (121,623 | ) | ||||||||||||||||
Net Expenses | 1,088,664 | 2,361,714 | 111,563 | 8,397 | 24,637 | 88,445 | |||||||||||||||||||||
Net Investment Income | 1,571,412 | 9,564,757 | 597,262 | 33,215 | 150,154 | 240,667 | |||||||||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS): | |||||||||||||||||||||||||||
Net realized gain (loss) from: | |||||||||||||||||||||||||||
Investment securities | (14,704,073 | ) | (24,084,221 | ) | (1,251,037 | ) | (11,439 | ) | (15,238 | ) | (1,328,723 | ) | |||||||||||||||
In-kind redemptions | 25,593,703 | 42,026,289 | 5,188,376 | 133,789 | 123,480 | 4,357,174 | |||||||||||||||||||||
Net increase from payment by affiliate (Note 3) | — | — | — | — | — | — | |||||||||||||||||||||
Net realized gain (loss) | 10,889,630 | 17,942,068 | 3,937,339 | 122,350 | 108,242 | 3,028,451 | |||||||||||||||||||||
Change net in unrealized appreciation (depreciation) on: | |||||||||||||||||||||||||||
Investment securities | (1,693,924 | ) | (13,184,103 | ) | (4,636,615 | ) | 187,293 | 505,579 | (3,515,009 | ) | |||||||||||||||||
Foreign currencies | — | — | — | — | — | — | |||||||||||||||||||||
Net change in unrealized appreciation (depreciation) | (1,693,924 | ) | (13,184,103 | ) | (4,636,615 | ) | 187,293 | 505,579 | (3,515,009 | ) | |||||||||||||||||
Net realized and unrealized gain (loss) | 9,195,706 | 4,757,965 | (699,276 | ) | 309,643 | 613,821 | (486,558 | ) | |||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | 10,767,118 | $ | 14,322,722 | $ | (102,014 | ) | $ | 342,858 | $ | 763,975 | $ | (245,891 | ) |
(a)Commencement of Investment Operations.
See Notes to Financial Statements.
72
PowerShares Fundamental Pure Mid Growth Portfolio (PXMG) | PowerShares Fundamental Pure Mid Value Portfolio (PXMV) | PowerShares Fundamental Pure Small Core Portfolio (PXSC) | PowerShares Fundamental Pure Small Growth Portfolio (PXSG) | PowerShares Fundamental Pure Small Value Portfolio (PXSV) | PowerShares Zacks Micro Cap Portfolio (PZI) | ||||||||||||||||||||||
Year Ended April 30, 2012 | Year Ended April 30, 2012 | Year Ended April 30, 2012 | Year Ended April 30, 2012 | Year Ended April 30, 2012 | Year Ended April 30, 2012 | ||||||||||||||||||||||
INVESTMENT INCOME: | |||||||||||||||||||||||||||
Unaffiliated dividend income | $ | 1,021,112 | $ | 643,746 | $ | 214,245 | $ | 463,180 | $ | 943,127 | $ | 641,453 | |||||||||||||||
Affiliated dividend income (Note 4) | — | — | — | 4,597 | — | — | |||||||||||||||||||||
Affiliated securities lending income | — | — | — | — | 24,818 | 123,858 | |||||||||||||||||||||
Foreign withholding tax | — | — | (140 | ) | — | — | (437 | ) | |||||||||||||||||||
Total Income | 1,021,112 | 643,746 | 214,105 | 467,777 | 967,945 | 764,874 | |||||||||||||||||||||
EXPENSES: | |||||||||||||||||||||||||||
Advisory fees | 319,091 | 103,746 | 49,042 | 191,928 | 182,592 | 236,781 | |||||||||||||||||||||
Accounting & administration fees | 67,460 | 67,460 | 67,460 | 67,460 | 67,460 | 67,460 | |||||||||||||||||||||
Recapture (Note 3) | 28,178 | — | — | 4,991 | — | — | |||||||||||||||||||||
Sub-licensing | 61,915 | 20,769 | 10,082 | 28,691 | 35,971 | 47,356 | |||||||||||||||||||||
Professional fees | 35,354 | 31,064 | 29,930 | 30,712 | 32,408 | 33,926 | |||||||||||||||||||||
Custodian & transfer agent fees | 12,060 | 11,432 | 15,585 | 12,971 | 15,704 | 24,160 | |||||||||||||||||||||
Trustees fees | 7,890 | 6,065 | 5,541 | 7,019 | 6,783 | 6,937 | |||||||||||||||||||||
Listing fee and expenses | 7,666 | 7,666 | 7,666 | 7,666 | 7,666 | 7,666 | |||||||||||||||||||||
Printing | — | 3,674 | 3,060 | 9,744 | 11,041 | 7,413 | |||||||||||||||||||||
Other expenses | 3,785 | 2,838 | 2,472 | 3,765 | 3,256 | 2,009 | |||||||||||||||||||||
Total Expenses | 543,399 | 254,714 | 190,838 | 364,947 | 362,881 | 433,708 | |||||||||||||||||||||
Waivers | (120,951 | ) | (117,234 | ) | (125,378 | ) | (114,756 | ) | (120,928 | ) | (102,215 | ) | |||||||||||||||
Net Expenses | 422,448 | 137,480 | 65,460 | 250,191 | 241,953 | 331,493 | |||||||||||||||||||||
Net Investment Income | 598,664 | 506,266 | 148,645 | 217,586 | 725,992 | 433,381 | |||||||||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS): | |||||||||||||||||||||||||||
Net realized gain (loss) from: | |||||||||||||||||||||||||||
Investment securities | (5,847,911 | ) | (1,721,867 | ) | (1,256,977 | ) | (4,623,516 | ) | (2,156,870 | ) | (9,356,435 | ) | |||||||||||||||
In-kind redemptions | 16,229,781 | 6,194,420 | 3,047,560 | 1,703,992 | 8,617,790 | 7,609,046 | |||||||||||||||||||||
Net increase from payment by affiliate (Note 3) | — | — | — | 12,745 | — | — | |||||||||||||||||||||
Net realized gain (loss) | 10,381,870 | 4,472,553 | 1,790,583 | (2,906,779 | ) | 6,460,920 | (1,747,389 | ) | |||||||||||||||||||
Change net in unrealized appreciation (depreciation) on: | |||||||||||||||||||||||||||
Investment securities | (20,861,947 | ) | (4,388,098 | ) | (2,831,971 | ) | (12,685,170 | ) | (10,394,660 | ) | (6,129,122 | ) | |||||||||||||||
Foreign currencies | — | — | — | — | — | (3,090 | ) | ||||||||||||||||||||
Net change in unrealized appreciation (depreciation) | (20,861,947 | ) | (4,388,098 | ) | (2,831,971 | ) | (12,685,170 | ) | (10,394,660 | ) | (6,132,212 | ) | |||||||||||||||
Net realized and unrealized gain (loss) | (10,480,077 | ) | 84,455 | (1,041,388 | ) | (15,591,949 | ) | (3,933,740 | ) | (7,879,601 | ) | ||||||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | (9,881,413 | ) | $ | 590,721 | $ | (892,743 | ) | $ | (15,374,363 | ) | $ | (3,207,748 | ) | $ | (7,446,220 | ) |
73
Statements of Changes in Net Assets
PowerShares Dynamic Large Cap Growth Portfolio (PWB) | PowerShares Dynamic Large Cap Value Portfolio (PWV) | PowerShares Fundamental Pure Large Core Portfolio (PXLC) | |||||||||||||||||||||||||
Year Ended April 30, 2012 | Year Ended April 30, 2011 | Year Ended April 30, 2012 | Year Ended April 30, 2011 | Year Ended April 30, 2012 | Year Ended April 30, 2011 | ||||||||||||||||||||||
OPERATIONS: | |||||||||||||||||||||||||||
Net investment income (loss) | $ | 1,571,412 | $ | 1,464,275 | $ | 9,564,757 | $ | 7,797,728 | $ | 597,262 | $ | 531,681 | |||||||||||||||
Net realized gain (loss) | 10,889,630 | 27,810,418 | 17,942,068 | 28,342,560 | 3,937,339 | 2,678,949 | |||||||||||||||||||||
Net change in unrealized appreciation (depreciation) | (1,693,924 | ) | 4,025,216 | (13,184,103 | ) | 18,953,298 | (4,636,615 | ) | 988,315 | ||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 10,767,118 | 33,299,909 | 14,322,722 | 55,093,586 | (102,014 | ) | 4,198,945 | ||||||||||||||||||||
Undistributed net investment income (loss) included in the price of units issued and redeemed | (5,376 | ) | (33,540 | ) | (69,378 | ) | 89,029 | (50,168 | ) | (41,024 | ) | ||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||||||||||||
Net investment income | (1,510,509 | ) | (1,450,284 | ) | (9,491,440 | ) | (8,397,017 | ) | (670,286 | ) | (523,166 | ) | |||||||||||||||
Return of capital | — | — | — | — | — | — | |||||||||||||||||||||
Total distributions to shareholders | (1,510,509 | ) | (1,450,284 | ) | (9,491,440 | ) | (8,397,017 | ) | (670,286 | ) | (523,166 | ) | |||||||||||||||
SHAREHOLDER TRANSACTIONS: | |||||||||||||||||||||||||||
Proceeds from shares sold | 121,004,823 | 157,999,083 | 352,632,765 | 369,332,330 | 26,748,290 | 24,211,429 | |||||||||||||||||||||
Value of shares repurchased | (135,822,460 | ) | (223,608,806 | ) | (360,043,032 | ) | (342,974,918 | ) | (36,322,756 | ) | (30,590,737 | ) | |||||||||||||||
Net income (loss) equalization | 5,376 | 33,540 | 69,378 | (89,029 | ) | 50,168 | 41,024 | ||||||||||||||||||||
Net increase (decrease) in net assets resulting from shares transactions | (14,812,261 | ) | (65,576,183 | ) | (7,340,889 | ) | 26,268,383 | (9,524,298 | ) | (6,338,284 | ) | ||||||||||||||||
Increase (Decrease) in Net Assets | (5,561,028 | ) | (33,760,098 | ) | (2,578,985 | ) | 73,053,981 | (10,346,766 | ) | (2,703,529 | ) | ||||||||||||||||
NET ASSETS: | |||||||||||||||||||||||||||
Beginning of year | 196,574,211 | 230,334,309 | 422,319,379 | 349,265,398 | 35,672,793 | 38,376,322 | |||||||||||||||||||||
End of year | $ | 191,013,183 | $ | 196,574,211 | $ | 419,740,394 | $ | 422,319,379 | $ | 25,326,027 | $ | 35,672,793 | |||||||||||||||
Undistributed net investment income (loss) at end of year | $ | 288,421 | $ | 227,518 | $ | 1,375,238 | $ | 1,301,921 | $ | 69,720 | $ | 142,774 | |||||||||||||||
CHANGES IN SHARES OUTSTANDING: | |||||||||||||||||||||||||||
Shares sold | 7,150,000 | 10,450,000 | 18,050,000 | 20,950,000 | 1,050,000 | 1,050,000 | |||||||||||||||||||||
Shares repurchased | (8,100,000 | ) | (14,750,000 | ) | (18,550,000 | ) | (19,550,000 | ) | (1,450,000 | ) | (1,350,000 | ) | |||||||||||||||
Shares outstanding, beginning of year | 11,150,000 | 15,450,000 | 20,750,000 | 19,350,000 | 1,350,000 | 1,650,000 | |||||||||||||||||||||
Shares outstanding, end of year | 10,200,000 | 11,150,000 | 20,250,000 | 20,750,000 | 950,000 | 1,350,000 |
(a)Commencement of Investment Operations.
See Notes to Financial Statements.
74
PowerShares Fundamental Pure Large Growth Portfolio (PXLG) | PowerShares Fundamental Pure Large Value Portfolio (PXLV) | PowerShares Fundamental Pure Mid Core Portfolio (PXMC) | PowerShares Fundamental Pure Mid Growth Portfolio (PXMG) | ||||||||||||||||||||||||
For the Period June 13, 2011(a) to April 30, 2012 | For the Period June 13, 2011(a) to April 30, 2012 | Year Ended April 30, 2012 | Year Ended April 30, 2011 | Year Ended April 30, 2012 | Year Ended April 30, 2011 | ||||||||||||||||||||||
OPERATIONS: | |||||||||||||||||||||||||||
Net investment income (loss) | $ | 33,215 | $ | 150,154 | $ | 240,667 | $ | 190,748 | $ | 598,664 | $ | (64,756 | ) | ||||||||||||||
Net realized gain (loss) | 122,350 | 108,242 | 3,028,451 | 4,151,067 | 10,381,870 | 26,801,160 | |||||||||||||||||||||
Net change in unrealized appreciation (depreciation) | 187,293 | 505,579 | (3,515,009 | ) | (833,011 | ) | (20,861,947 | ) | 166,817 | ||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 342,858 | 763,975 | (245,891 | ) | 3,508,804 | (9,881,413 | ) | 26,903,221 | |||||||||||||||||||
Undistributed net investment income (loss) included in the price of units issued and redeemed | — | — | (5,615 | ) | (4,393 | ) | (17,731 | ) | 23,125 | ||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||||||||||||
Net investment income | (17,066 | ) | (132,239 | ) | (227,420 | ) | (196,204 | ) | (355,610 | ) | — | ||||||||||||||||
Return of capital | — | — | — | — | — | (344,520 | ) | ||||||||||||||||||||
Total distributions to shareholders | (17,066 | ) | (132,239 | ) | (227,420 | ) | (196,204 | ) | (355,610 | ) | (344,520 | ) | |||||||||||||||
SHAREHOLDER TRANSACTIONS: | |||||||||||||||||||||||||||
Proceeds from shares sold | 6,164,439 | 14,853,954 | 26,425,945 | 25,358,610 | 120,745,104 | 148,851,208 | |||||||||||||||||||||
Value of shares repurchased | (2,050,215 | ) | (7,337,275 | ) | (30,410,631 | ) | (30,943,293 | ) | (153,595,166 | ) | (173,163,736 | ) | |||||||||||||||
Net income (loss) equalization | — | — | 5,615 | 4,393 | 17,731 | (23,125 | ) | ||||||||||||||||||||
Net increase (decrease) in net assets resulting from shares transactions | 4,114,224 | 7,516,679 | (3,979,071 | ) | (5,580,290 | ) | (32,832,331 | ) | (24,335,653 | ) | |||||||||||||||||
Increase (Decrease) in Net Assets | 4,440,016 | 8,148,415 | (4,457,997 | ) | (2,272,083 | ) | (43,087,085 | ) | 2,246,173 | ||||||||||||||||||
NET ASSETS: | |||||||||||||||||||||||||||
Beginning of year | — | — | 23,080,742 | 25,352,825 | 130,290,487 | 128,044,314 | |||||||||||||||||||||
End of year | $ | 4,440,016 | $ | 8,148,415 | $ | 18,622,745 | $ | 23,080,742 | $ | 87,203,402 | $ | 130,290,487 | |||||||||||||||
Undistributed net investment income (loss) at end of year | $ | 16,149 | $ | 17,915 | $ | 33,461 | $ | 24,690 | $ | 234,876 | $ | (354,479 | ) | ||||||||||||||
CHANGES IN SHARES OUTSTANDING: | |||||||||||||||||||||||||||
Shares sold | 300,001 | 800,001 | 1,000,000 | 1,100,000 | 5,350,000 | 7,500,000 | |||||||||||||||||||||
Shares repurchased | (100,000 | ) | (400,000 | ) | (1,150,000 | ) | (1,350,000 | ) | (6,900,000 | ) | (8,800,000 | ) | |||||||||||||||
Shares outstanding, beginning of year | — | — | 850,000 | 1,100,000 | 5,400,000 | 6,700,000 | |||||||||||||||||||||
Shares outstanding, end of year | 200,001 | 400,001 | 700,000 | 850,000 | 3,850,000 | 5,400,000 |
75
Statements of Changes in Net Assets (Continued)
PowerShares Fundamental Pure Mid Value Portfolio (PXMV) | PowerShares Fundamental Pure Small Core Portfolio (PXSC) | PowerShares Fundamental Pure Small Growth Portfolio (PXSG) | |||||||||||||||||||||||||
Year Ended April 30, 2012 | Year Ended April 30, 2011 | Year Ended April 30, 2012 | Year Ended April 30, 2011 | Year Ended April 30, 2012 | Year Ended April 30, 2011 | ||||||||||||||||||||||
OPERATIONS: | |||||||||||||||||||||||||||
Net investment income (loss) | $ | 506,266 | $ | 392,345 | $ | 148,645 | $ | 71,386 | $ | 217,586 | $ | (139,026 | ) | ||||||||||||||
Net realized gain (loss) | 4,472,553 | 3,964,604 | 1,790,583 | 2,689,123 | (2,919,524 | ) | 6,314,763 | ||||||||||||||||||||
Net increase from payment by affiliate (see Note 3) | — | — | — | — | 12,745 | — | |||||||||||||||||||||
Net change in unrealized appreciation (depreciation) | (4,388,098 | ) | (52,138 | ) | (2,831,971 | ) | 339,405 | (12,685,170 | ) | 8,382,513 | |||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 590,721 | 4,304,811 | (892,743 | ) | 3,099,914 | (15,374,363 | ) | 14,558,250 | |||||||||||||||||||
Undistributed net investment income (loss) included in the price of units issued and redeemed | (13,610 | ) | (3,425 | ) | (5,457 | ) | (3,569 | ) | 285,373 | (257,986 | ) | ||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||||||||||||
Net investment income | (458,896 | ) | (393,205 | ) | (102,977 | ) | (69,608 | ) | — | — | |||||||||||||||||
Return of capital | — | — | — | — | — | — | |||||||||||||||||||||
Total distributions to shareholders | (458,896 | ) | (393,205 | ) | (102,977 | ) | (69,608 | ) | — | — | |||||||||||||||||
SHAREHOLDER TRANSACTIONS: | |||||||||||||||||||||||||||
Proceeds from shares sold | 37,524,414 | 45,052,478 | 16,742,065 | 22,902,290 | 131,768,597 | 113,814,335 | |||||||||||||||||||||
Value of shares repurchased | (46,219,014 | ) | (51,812,090 | ) | (19,002,641 | ) | (25,901,328 | ) | (194,932,390 | ) | (51,394,280 | ) | |||||||||||||||
Net income (loss) equalization | 13,610 | 3,425 | 5,457 | 3,569 | (285,373 | ) | 257,986 | ||||||||||||||||||||
Net increase (decrease) in net assets resulting from shares transactions | (8,680,990 | ) | (6,756,187 | ) | (2,255,119 | ) | (2,995,469 | ) | (63,449,166 | ) | 62,678,041 | ||||||||||||||||
Increase (Decrease) in Net Assets | (8,562,775 | ) | (2,848,006 | ) | (3,256,296 | ) | 31,268 | (78,538,156 | ) | 76,978,305 | |||||||||||||||||
NET ASSETS: | |||||||||||||||||||||||||||
Beginning of year | 40,970,484 | 43,818,490 | 18,991,343 | 18,960,075 | 109,450,807 | 32,472,502 | |||||||||||||||||||||
End of year | $ | 32,407,709 | $ | 40,970,484 | $ | 15,735,047 | $ | 18,991,343 | $ | 30,912,651 | $ | 109,450,807 | |||||||||||||||
Undistributed net investment income (loss) at end of year | $ | 74,376 | $ | 47,137 | $ | 42,632 | $ | (1,090 | ) | $ | 212,664 | $ | (4,922 | ) | |||||||||||||
CHANGES IN SHARES OUTSTANDING: | |||||||||||||||||||||||||||
Shares sold | 2,250,000 | 3,000,000 | 700,000 | 1,100,000 | 7,200,000 | 6,950,000 | |||||||||||||||||||||
Shares repurchased | (2,750,000 | ) | (3,450,000 | ) | (800,000 | ) | (1,250,000 | ) | (11,200,000 | ) | (3,500,000 | ) | |||||||||||||||
Shares outstanding, beginning of year | 2,400,000 | 2,850,000 | 750,000 | 900,000 | 5,750,000 | 2,300,000 | |||||||||||||||||||||
Shares outstanding, end of year | 1,900,000 | 2,400,000 | 650,000 | 750,000 | 1,750,000 | 5,750,000 |
(a)Commencement of Investment Operations.
See Notes to Financial Statements.
76
PowerShares Fundamental Pure Small Value Portfolio (PXSV) | PowerShares Zacks Micro Cap Portfolio (PZI) | ||||||||||||||||||
Year Ended April 30, 2012 | Year Ended April 30, 2011 | Year Ended April 30, 2012 | Year Ended April 30, 2011 | ||||||||||||||||
OPERATIONS: | |||||||||||||||||||
Net investment income (loss) | $ | 725,992 | $ | 732,848 | $ | 433,381 | $ | 296,457 | |||||||||||
Net realized gain (loss) | 6,460,920 | 8,572,051 | (1,747,389 | ) | 11,166,308 | ||||||||||||||
Net increase from payment by affiliate (see Note 3) | — | — | — | — | |||||||||||||||
Net change in unrealized appreciation (depreciation) | (10,394,660 | ) | 1,243,542 | (6,132,212 | ) | 277,633 | |||||||||||||
Net increase (decrease) in net assets resulting from operations | (3,207,748 | ) | 10,548,441 | (7,446,220 | ) | 11,740,398 | |||||||||||||
Undistributed net investment income (loss) included in the price of units issued and redeemed | 4,399 | (5,642 | ) | 255,399 | (231,417 | ) | |||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||||
Net investment income | (687,907 | ) | (788,255 | ) | (599,475 | ) | (446,555 | ) | |||||||||||
Return of capital | — | — | — | — | |||||||||||||||
Total distributions to shareholders | (687,907 | ) | (788,255 | ) | (599,475 | ) | (446,555 | ) | |||||||||||
SHAREHOLDER TRANSACTIONS: | |||||||||||||||||||
Proceeds from shares sold | 54,373,664 | 71,421,872 | 26,907,134 | 115,364,266 | |||||||||||||||
Value of shares repurchased | (70,706,299 | ) | (81,095,287 | ) | (83,806,961 | ) | (81,452,188 | ) | |||||||||||
Net income (loss) equalization | (4,399 | ) | 5,642 | (255,399 | ) | 231,417 | |||||||||||||
Net increase (decrease) in net assets resulting from shares transactions | (16,337,034 | ) | (9,667,773 | ) | (57,155,226 | ) | 34,143,495 | ||||||||||||
Increase (Decrease) in Net Assets | (20,228,290 | ) | 86,771 | (64,945,522 | ) | 45,205,921 | |||||||||||||
NET ASSETS: | |||||||||||||||||||
Beginning of year | 72,539,875 | 72,453,104 | 98,964,229 | 53,758,308 | |||||||||||||||
End of year | $ | 52,311,585 | $ | 72,539,875 | $ | 34,018,707 | $ | 98,964,229 | |||||||||||
Undistributed net investment income (loss) at end of year | $ | 138,629 | $ | 91,142 | $ | 59,046 | $ | 109,282 | |||||||||||
CHANGES IN SHARES OUTSTANDING: | |||||||||||||||||||
Shares sold | 3,350,000 | 5,000,000 | 2,450,000 | 10,300,000 | |||||||||||||||
Shares repurchased | (4,400,000 | ) | (5,700,000 | ) | (7,350,000 | ) | (7,000,000 | ) | |||||||||||
Shares outstanding, beginning of year | 4,250,000 | 4,950,000 | 7,900,000 | 4,600,000 | |||||||||||||||
Shares outstanding, end of year | 3,200,000 | 4,250,000 | 3,000,000 | 7,900,000 |
77
Financial Highlights
PowerShares Dynamic Large Cap Growth Portfolio (PWB)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of year | $ | 17.63 | $ | 14.91 | $ | 11.03 | $ | 17.33 | $ | 17.46 | |||||||||||||
Net investment income(a) | 0.15 | 0.11 | 0.06 | 0.08 | 0.07 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 1.09 | 2.72 | 3.91 | (6.30 | ) | (0.16 | ) | ||||||||||||||||
Total from investment operations | 1.24 | 2.83 | 3.97 | (6.22 | ) | (0.09 | ) | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.14 | ) | (0.11 | ) | (0.09 | ) | (0.08 | ) | (0.04 | ) | |||||||||||||
Net asset value at end of year | $ | 18.73 | $ | 17.63 | $ | 14.91 | $ | 11.03 | $ | 17.33 | |||||||||||||
Share price at end of year(b) | $ | 18.72 | $ | 17.63 | $ | 14.91 | $ | 11.03 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN(c) | 7.18 | % | 19.08 | % | 36.15 | % | (35.93 | )% | (0.56 | )% | |||||||||||||
SHARE PRICE TOTAL RETURN(c) | 7.12 | % | 19.08 | % | 36.15 | % | (35.93 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 191,013 | $ | 196,574 | $ | 230,334 | $ | 281,172 | $ | 665,609 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.61 | % | 0.63 | % | 0.61 | % | 0.61 | % | 0.63 | % | |||||||||||||
Expenses, prior to Waivers | 0.62 | % | 0.64 | % | 0.61 | % | 0.60 | % | 0.60 | % | |||||||||||||
Net investment income, after Waivers | 0.89 | % | 0.73 | % | 0.45 | % | 0.60 | % | 0.37 | % | |||||||||||||
Portfolio turnover rate(d) | 64 | % | 45 | % | 67 | % | 88 | % | 46 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(e) | $ | (0.00 | )(f) | $ | (0.00 | )(f) | $ | (0.00 | )(f) | $ | (0.02 | ) | $ | 0.02 |
PowerShares Dynamic Large Cap Value Portfolio (PWV)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of year | $ | 20.35 | $ | 18.05 | $ | 13.54 | $ | 19.27 | $ | 20.72 | |||||||||||||
Net investment income(a) | 0.46 | 0.40 | 0.39 | 0.41 | 0.43 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.38 | 2.33 | 4.52 | (5.81 | ) | (1.40 | ) | ||||||||||||||||
Total from investment operations | 0.84 | 2.73 | 4.91 | (5.40 | ) | (0.97 | ) | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.46 | ) | (0.43 | ) | (0.40 | ) | (0.33 | ) | (0.48 | ) | |||||||||||||
Net asset value at end of year | $ | 20.73 | $ | 20.35 | $ | 18.05 | $ | 13.54 | $ | 19.27 | |||||||||||||
Share price at end of year(b) | $ | 20.71 | $ | 20.36 | $ | 18.05 | $ | 13.55 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN(c) | 4.34 | % | 15.50 | % | 36.69 | % | (28.30 | )% | (4.78 | )% | |||||||||||||
SHARE PRICE TOTAL RETURN(c) | 4.20 | % | 15.49 | % | 36.67 | % | (28.21 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 419,740 | $ | 422,319 | $ | 349,265 | $ | 262,699 | $ | 252,489 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.59 | % | 0.61 | % | 0.63 | % | 0.63 | % | 0.63 | % | |||||||||||||
Expenses, prior to Waivers | 0.59 | % | 0.61 | % | 0.60 | % | 0.61 | % | 0.59 | % | |||||||||||||
Net investment income, after Waivers | 2.39 | % | 2.22 | % | 2.46 | % | 2.71 | % | 2.14 | % | |||||||||||||
Portfolio turnover rate(d) | 41 | % | 40 | % | 47 | % | 77 | % | 22 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(e) | $ | (0.00 | )(f) | $ | 0.00 | (f) | $ | 0.01 | $ | 0.02 | $ | 0.00 | (f) |
(a) Based on average shares outstanding.
(b) The mean between the last bid and ask prices.
(c) 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.
(d) Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
(e) The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(f) Amount represents less than $0.005.
See Notes to Financial Statements.
78
Financial Highlights (Continued)
PowerShares Fundamental Pure Large Core Portfolio (PXLC)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of year | $ | 26.42 | $ | 23.26 | $ | 17.56 | $ | 25.92 | $ | 27.00 | |||||||||||||
Net investment income(a) | 0.57 | 0.37 | 0.27 | 0.34 | 0.27 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.32 | 3.16 | 5.74 | (8.44 | ) | (1.14 | ) | ||||||||||||||||
Total from investment operations | 0.89 | 3.53 | 6.01 | (8.10 | ) | (0.87 | ) | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.65 | ) | (0.37 | ) | (0.31 | ) | (0.26 | ) | (0.21 | ) | |||||||||||||
Net asset value at end of year | $ | 26.66 | $ | 26.42 | $ | 23.26 | $ | 17.56 | $ | 25.92 | |||||||||||||
Share price at end of year(b) | $ | 26.66 | $ | 26.42 | $ | 23.26 | $ | 17.55 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN(c) | 3.64 | % | 15.40 | % | 34.56 | % | (31.47 | )% | (3.26 | )% | |||||||||||||
SHARE PRICE TOTAL RETURN(c) | 3.64 | % | 15.40 | % | 34.64 | % | (31.48 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 25,326 | $ | 35,673 | $ | 38,376 | $ | 33,355 | $ | 25,922 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.43 | % | 0.65 | % | 0.65 | % | 0.65 | % | 0.73 | % | |||||||||||||
Expenses, prior to Waivers | 0.90 | % | 0.99 | % | 0.88 | % | 0.93 | % | 1.38 | % | |||||||||||||
Net investment income, after Waivers | 2.32 | % | 1.61 | % | 1.32 | % | 1.71 | % | 1.03 | % | |||||||||||||
Portfolio turnover rate(d) | 58 | % | 41 | % | 62 | % | 57 | % | 49 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(e) | $ | (0.05 | ) | $ | (0.03 | ) | $ | (0.01 | ) | $ | 0.04 | $ | 0.06 |
PowerShares Fundamental Pure Large Growth Portfolio (PXLG)
For the Period June 13, 2011(f) Through April 30, 2012 | |||||||
PER SHARE OPERATING PERFORMANCE: | |||||||
Net asset value at beginning of year | $ | 20.00 | |||||
Net investment income(a) | 0.28 | ||||||
Net realized and unrealized gain (loss) on investments | 2.09 | ||||||
Total from investment operations | 2.37 | ||||||
Distributions to shareholders from: | |||||||
Net investment income | (0.17 | ) | |||||
Net asset value at end of period | $ | 22.20 | |||||
Share price at end of period(b) | $ | 22.19 | |||||
NET ASSET VALUE, TOTAL RETURN(c) | 11.99 | %(g) | |||||
SHARE PRICE TOTAL RETURN(c) | 11.94 | %(g) | |||||
RATIOS/SUPPLEMENTAL DATA: | |||||||
Net assets at end of period (000's omitted) | $ | 4,440 | |||||
Ratio to average net assets of: | |||||||
Expenses, after Waivers | 0.39 | %(h) | |||||
Expenses, prior to Waivers | 7.69 | %(h) | |||||
Net investment income, after Waivers | 1.54 | %(h) | |||||
Portfolio turnover rate(d) | 3 | % | |||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(e) | $ | — |
(a) Based on average shares outstanding.
(b) The mean between the last bid and ask prices.
(c) 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.
(d) Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
(e) The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(f) Commencement of Investment Operations.
(g) The net asset value total return from Fund Inception (June 16, 2011, the first day of trading on the Exchange) to April 30, 2012 was 13.81%. The share price total return from Fund Inception to April 30, 2012 was 13.87%.
(h) Annualized.
See Notes to Financial Statements.
79
Financial Highlights (Continued)
PowerShares Fundamental Pure Large Value Portfolio (PXLV)
For the Period June 13, 2011(a) Through April 30, 2012 | |||||||
PER SHARE OPERATING PERFORMANCE: | |||||||
Net asset value at beginning of period | $ | 20.00 | |||||
Net investment income(b) | 0.39 | ||||||
Net realized and unrealized gain (loss) on investments | 0.33 | ||||||
Total from investment operations | 0.72 | ||||||
Distributions to shareholders from: | |||||||
Net investment income | (0.35 | ) | |||||
Net asset value at end of period | $ | 20.37 | |||||
Share price at end of period(c) | $ | 20.35 | |||||
NET ASSET VALUE, TOTAL RETURN(d) | 3.80 | %(e) | |||||
SHARE PRICE TOTAL RETURN(d) | 3.70 | %(e) | |||||
RATIOS/SUPPLEMENTAL DATA: | |||||||
Net assets at end of period (000's omitted) | $ | 8,148 | |||||
Ratio to average net assets of: | |||||||
Expenses, after Waivers | 0.39 | %(h) | |||||
Expenses, prior to Waivers | 2.87 | %(h) | |||||
Net investment income, after Waivers | 2.38 | %(h) | |||||
Portfolio turnover rate(f) | 2 | % | |||||
Undistributed net investment income (loss) included in price of units issued and redeemed(b)(g) | $ | — |
PowerShares Fundamental Pure Mid Core Portfolio (PXMC)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of year | $ | 27.15 | $ | 23.05 | $ | 16.30 | $ | 25.47 | $ | 27.98 | |||||||||||||
Net investment income(b) | 0.29 | 0.21 | 0.18 | 0.13 | 0.11 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.57 | ) | 4.10 | 6.73 | (9.17 | ) | (2.49 | ) | |||||||||||||||
Total from investment operations | (0.28 | ) | 4.31 | 6.91 | (9.04 | ) | (2.38 | ) | |||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.27 | ) | (0.21 | ) | (0.16 | ) | (0.13 | ) | (0.13 | ) | |||||||||||||
Net asset value at end of year | $ | 26.60 | $ | 27.15 | $ | 23.05 | $ | 16.30 | $ | 25.47 | |||||||||||||
Share price at end of year(c) | $ | 26.62 | $ | 27.15 | $ | 23.04 | $ | 16.29 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN(d) | (0.93 | )% | 18.84 | % | 42.59 | % | (35.57 | )% | (8.54 | )% | |||||||||||||
SHARE PRICE TOTAL RETURN(d) | (0.85 | )% | 18.89 | % | 42.62 | % | (35.63 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 18,623 | $ | 23,081 | $ | 25,353 | $ | 17,929 | $ | 25,469 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.43 | % | 0.65 | % | 0.65 | % | 0.65 | % | 0.73 | % | |||||||||||||
Expenses, prior to Waivers | 1.01 | % | 1.20 | % | 1.11 | % | 1.17 | % | 1.34 | % | |||||||||||||
Net investment income, after Waivers | 1.16 | % | 0.88 | % | 0.92 | % | 0.67 | % | 0.42 | % | |||||||||||||
Portfolio turnover rate(f) | 83 | % | 47 | % | 76 | % | 79 | % | 99 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(b)(g) | $ | (0.01 | ) | $ | (0.00 | )(i) | $ | (0.00 | )(i) | $ | 0.01 | $ | (0.01 | ) |
(a) Commencement of Investment Operations.
(b) Based on average shares outstanding.
(c) The mean between the last bid and ask prices.
(d) 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.
(e) The net asset value total return from Fund Inception (June 16, 2011, the first day of trading on the Exchange) to April 30, 2012 was 5.17%. The share price total return from Fund Inception to April 30, 2012 was 5.23%.
(f) Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
(g) The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(h) Annualized.
(i) Amount represents less than $0.005.
See Notes to Financial Statements.
80
Financial Highlights (Continued)
PowerShares Fundamental Pure Mid Growth Portfolio (PXMG)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of year | $ | 24.13 | $ | 19.11 | $ | 13.87 | $ | 22.29 | $ | 21.09 | |||||||||||||
Net investment income (loss)(a) | 0.13 | (0.01 | ) | 0.00 | (f) | (0.01 | ) | 0.00 | (f) | ||||||||||||||
Net realized and unrealized gain (loss) on investments | (1.53 | ) | 5.09 | 5.25 | (8.41 | ) | 1.20 | ||||||||||||||||
Total from investment operations | (1.40 | ) | 5.08 | 5.25 | (8.42 | ) | 1.20 | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.08 | ) | — | (0.00 | )(f) | — | — | ||||||||||||||||
Return of capital | — | (0.06 | ) | (0.01 | ) | — | 0.00 | (f) | |||||||||||||||
Total distributions | (0.08 | ) | (0.06 | ) | (0.01 | ) | — | 0.00 | (f) | ||||||||||||||
Net asset value at end of year | $ | 22.65 | $ | 24.13 | $ | 19.11 | $ | 13.87 | $ | 22.29 | |||||||||||||
Share price at end of year(b) | $ | 22.63 | $ | 24.13 | $ | 19.10 | $ | 13.85 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN(c) | (5.74 | )% | 26.61 | % | 37.89 | % | (37.78 | )% | 5.70 | % | |||||||||||||
SHARE PRICE TOTAL RETURN(c) | (5.83 | )% | 26.67 | % | 38.02 | % | (37.86 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 87,203 | $ | 130,290 | $ | 128,044 | $ | 140,038 | $ | 390,146 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.43 | % | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | |||||||||||||
Expenses, prior to Waivers | 0.55 | % | 0.69 | % | 0.66 | % | 0.61 | % | 0.60 | % | |||||||||||||
Net investment income (loss), after Waivers | 0.61 | % | (0.06 | )% | 0.03 | % | (0.07 | )% | (0.01 | )% | |||||||||||||
Portfolio turnover rate(d) | 75 | % | 49 | % | 75 | % | 81 | % | 80 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(e) | $ | (0.00 | )(f) | $ | 0.00 | (f) | $ | (0.00 | )(f) | $ | 0.01 | $ | (0.01 | ) |
PowerShares Fundamental Pure Mid Value Portfolio (PXMV)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of year | $ | 17.07 | $ | 15.37 | $ | 11.16 | $ | 16.89 | $ | 20.25 | |||||||||||||
Net investment income(a) | 0.25 | 0.15 | 0.23 | 0.26 | 0.22 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.03 | ) | 1.70 | 4.24 | (5.75 | ) | (3.32 | ) | |||||||||||||||
Total from investment operations | 0.22 | 1.85 | 4.47 | (5.49 | ) | (3.10 | ) | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.23 | ) | (0.15 | ) | (0.26 | ) | (0.24 | ) | (0.26 | ) | |||||||||||||
Net asset value at end of year | $ | 17.06 | $ | 17.07 | $ | 15.37 | $ | 11.16 | $ | 16.89 | |||||||||||||
Share price at end of year(b) | $ | 17.04 | $ | 17.07 | $ | 15.36 | $ | 11.13 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN(c) | 1.42 | % | 12.16 | % | 40.58 | % | (32.71 | )% | (15.47 | )% | |||||||||||||
SHARE PRICE TOTAL RETURN(c) | 1.30 | % | 12.24 | % | 40.88 | % | (32.89 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 32,408 | $ | 40,970 | $ | 43,818 | $ | 39,056 | $ | 79,380 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.43 | % | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | |||||||||||||
Expenses, prior to Waivers | 0.79 | % | 0.91 | % | 0.84 | % | 0.78 | % | 0.68 | % | |||||||||||||
Net investment income, after Waivers | 1.57 | % | 0.99 | % | 1.76 | % | 1.95 | % | 1.14 | % | |||||||||||||
Portfolio turnover rate(d) | 83 | % | 65 | % | 86 | % | 94 | % | 53 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(e) | $ | (0.01 | ) | $ | (0.00 | )(f) | $ | (0.00 | )(f) | $ | (0.01 | ) | $ | 0.00 | (f) |
(a) Based on average shares outstanding.
(b) The mean between the last bid and ask prices.
(c) 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.
(d) Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
(e) The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(f) Amount represents less than $0.005.
See Notes to Financial Statements.
81
Financial Highlights (Continued)
PowerShares Fundamental Pure Small Core Portfolio (PXSC)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of year | $ | 25.32 | $ | 21.07 | $ | 15.03 | $ | 23.31 | $ | 26.68 | |||||||||||||
Net investment income(a) | 0.22 | 0.09 | 0.11 | 0.08 | 0.06 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (1.18 | ) | 4.25 | 6.08 | (8.31 | ) | (3.13 | ) | |||||||||||||||
Total from investment operations | (0.96 | ) | 4.34 | 6.19 | (8.23 | ) | (3.07 | ) | |||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.15 | ) | (0.09 | ) | (0.14 | ) | (0.05 | ) | (0.08 | ) | |||||||||||||
Return of capital | — | — | (0.01 | ) | — | (0.22 | ) | ||||||||||||||||
Total distributions | (0.15 | ) | (0.09 | ) | (0.15 | ) | (0.05 | ) | (0.30 | ) | |||||||||||||
Net asset value at end of year | $ | 24.21 | $ | 25.32 | $ | 21.07 | $ | 15.03 | $ | 23.31 | |||||||||||||
Share price at end of year(b) | $ | 24.18 | $ | 25.33 | $ | 21.05 | $ | 15.00 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN(c) | (3.70 | )% | 20.64 | % | 41.37 | % | (35.34 | )% | (11.61 | )% | |||||||||||||
SHARE PRICE TOTAL RETURN(c) | (3.85 | )% | 20.80 | % | 41.52 | % | (35.41 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 15,735 | $ | 18,991 | $ | 18,960 | $ | 13,530 | $ | 16,314 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.43 | % | 0.65 | % | 0.65 | % | 0.65 | % | 0.79 | % | |||||||||||||
Expenses, prior to Waivers | 1.25 | % | 1.41 | % | 1.26 | % | 1.35 | % | 1.96 | % | |||||||||||||
Net investment income, after Waivers | 0.97 | % | 0.42 | % | 0.59 | % | 0.47 | % | 0.26 | % | |||||||||||||
Portfolio turnover rate(d) | 97 | % | 68 | % | 93 | % | 81 | % | 103 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(e) | $ | (0.01 | ) | $ | (0.00 | )(f) | $ | 0.00 | (f) | $ | 0.01 | $ | 0.05 |
PowerShares Fundamental Pure Small Growth Portfolio (PXSG)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of year | $ | 19.03 | $ | 14.12 | $ | 10.49 | $ | 15.71 | $ | 18.59 | |||||||||||||
Net investment income (loss)(a) | 0.07 | (0.05 | ) | 0.05 | 0.01 | (0.05 | ) | ||||||||||||||||
Net realized and unrealized gain (loss) on investments | (1.44 | ) | 4.96 | 3.67 | (5.23 | ) | (2.83 | ) | |||||||||||||||
Total from investment operations | (1.37 | ) | 4.91 | 3.72 | (5.22 | ) | (2.88 | ) | |||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | — | — | (0.07 | ) | — | — | |||||||||||||||||
Return of capital | — | — | (0.02 | ) | — | — | |||||||||||||||||
Total distributions | — | — | (0.09 | ) | — | — | |||||||||||||||||
Net asset value at end of year | $ | 17.66 | $ | 19.03 | $ | 14.12 | $ | 10.49 | $ | 15.71 | |||||||||||||
Share price at end of year(b) | $ | 17.64 | $ | 19.05 | $ | 14.10 | $ | 10.48 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN(c) | (7.20 | )% | 34.77 | % | 35.60 | % | (33.23 | )% | (15.49 | )% | |||||||||||||
SHARE PRICE TOTAL RETURN(c) | (7.40 | )% | 35.11 | % | 35.54 | % | (33.25 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 30,913 | $ | 109,451 | $ | 32,473 | $ | 31,484 | $ | 51,846 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.48 | % | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | |||||||||||||
Expenses, prior to Waivers | 0.69 | % | 0.93 | % | 0.94 | % | 0.86 | % | 0.77 | % | |||||||||||||
Net investment income (loss), after Waivers | 0.41 | % | (0.37 | )% | 0.41 | % | 0.11 | % | (0.27 | )% | |||||||||||||
Portfolio turnover rate(d) | 189 | % | 57 | % | 113 | % | 109 | % | 78 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(e) | $ | 0.09 | $ | (0.10 | ) | $ | 0.01 | $ | 0.00 | (f) | $ | (0.00 | )(f) |
(a) Based on average shares outstanding.
(b) The mean between the last bid and ask prices.
(c) 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.
(d) Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
(e) The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(f) Amount represents less than $0.005.
See Notes to Financial Statements.
82
Financial Highlights (Continued)
PowerShares Fundamental Pure Small Value Portfolio (PXSV)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of year | $ | 17.07 | $ | 14.64 | $ | 10.38 | $ | 15.80 | $ | 18.68 | |||||||||||||
Net investment income(a) | 0.19 | 0.16 | 0.09 | 0.12 | 0.16 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.72 | ) | 2.45 | 4.25 | (5.43 | ) | (2.47 | ) | |||||||||||||||
Total from investment operations | (0.53 | ) | 2.61 | 4.34 | (5.31 | ) | (2.31 | ) | |||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.19 | ) | (0.18 | ) | (0.08 | ) | (0.11 | ) | (0.16 | ) | |||||||||||||
Return of capital | — | — | — | — | (0.41 | ) | |||||||||||||||||
Total distributions | (0.19 | ) | (0.18 | ) | (0.08 | ) | (0.11 | ) | (0.57 | ) | |||||||||||||
Net asset value at end of year | $ | 16.35 | $ | 17.07 | $ | 14.64 | $ | 10.38 | $ | 15.80 | |||||||||||||
Share price at end of year(b) | $ | 16.33 | $ | 17.08 | $ | 14.62 | $ | 10.36 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN(c) | (3.01 | )% | 18.03 | % | 42.03 | % | (33.69 | )% | (12.51 | )% | |||||||||||||
SHARE PRICE TOTAL RETURN(c) | (3.18 | )% | 18.26 | % | 42.11 | % | (33.78 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 52,312 | $ | 72,540 | $ | 72,453 | $ | 62,253 | $ | 91,667 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.43 | % | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | |||||||||||||
Expenses, prior to Waivers | 0.64 | % | 0.80 | % | 0.74 | % | 0.73 | % | 0.67 | % | |||||||||||||
Net investment income, after Waivers | 1.28 | % | 1.14 | % | 0.73 | % | 1.00 | % | 0.91 | % | |||||||||||||
Portfolio turnover rate(d) | 109 | % | 90 | % | 116 | % | 98 | % | 86 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(e) | $ | 0.00 | (f) | $ | (0.00 | )(f) | $ | 0.00 | (f) | $ | 0.00 | (f) | $ | (0.03 | ) |
PowerShares Zacks Micro Cap Portfolio (PZI)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of year | $ | 12.53 | $ | 11.69 | $ | 8.10 | $ | 13.63 | $ | 18.32 | |||||||||||||
Net investment income(a) | 0.10 | 0.04 | 0.04 | 0.12 | 0.16 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (1.16 | ) | 0.88 | 3.62 | (5.48 | ) | (4.73 | ) | |||||||||||||||
Total from investment operations | (1.06 | ) | 0.92 | 3.66 | (5.36 | ) | (4.57 | ) | |||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.13 | ) | (0.08 | ) | (0.07 | ) | (0.17 | ) | (0.12 | ) | |||||||||||||
Net asset value at end of year | $ | 11.34 | $ | 12.53 | $ | 11.69 | $ | 8.10 | $ | 13.63 | |||||||||||||
Share price at end of year(b) | $ | 11.32 | $ | 12.52 | $ | 11.68 | $ | 8.10 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN(c) | (8.34 | )% | 7.97 | % | 45.49 | % | (39.70 | )% | (25.07 | )% | |||||||||||||
SHARE PRICE TOTAL RETURN(c) | (8.42 | )% | 7.97 | % | 45.37 | % | (39.66 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 34,019 | $ | 98,964 | $ | 53,758 | $ | 46,960 | $ | 94,068 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers(g) | 0.70 | % | 0.70 | % | 0.70 | % | 0.70 | % | 0.70 | % | |||||||||||||
Expenses, prior to Waivers | 0.92 | % | 0.85 | % | 0.93 | % | 0.86 | % | 0.71 | % | |||||||||||||
Net investment income, after Waivers | 0.92 | % | 0.39 | % | 0.38 | % | 1.11 | % | 0.99 | % | |||||||||||||
Portfolio turnover rate(d) | 67 | % | 61 | % | 78 | % | 51 | % | 54 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(e) | $ | 0.06 | $ | (0.03 | ) | $ | 0.01 | $ | 0.00 | (f) | $ | (0.03 | ) |
(a) Based on average shares outstanding.
(b) The mean between the last bid and ask prices.
(c) 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.
(d) Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
(e) The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(f) Amount represents less than $0.005.
(g) In addition to the fees and expenses which the Fund bears directly, the Fund indirectly bears a pro rata share of the fees and expenses of the underlying funds in which the Fund invests. Such indirect expenses are not included in the expense ratio shown. Estimated investment company expenses are not expenses that are incurred directly by the Fund. They are expenses that are incurred directly by the investment companies and are deducted from the value of the funds that the Fund invests in. The effect of the estimated investment company expenses that the Fund bears indirectly is included in the Fund's total return.
See Notes to Financial Statements.
83
Notes to Financial Statements
PowerShares Exchange-Traded Fund Trust
April 30, 2012
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, 2012, the Trust offered fifty-eight portfolios. This report includes the following portfolios:
Full Name | Short Name | ||||||
PowerShares Dynamic Large Cap Growth Portfolio (PWB) | "Dynamic Large Cap Growth Portfolio" | ||||||
PowerShares Dynamic Large Cap Value Portfolio (PWV) | "Dynamic Large Cap Value Portfolio" | ||||||
PowerShares Fundamental Pure Large Core Portfolio (PXLC) | "Fundamental Pure Large Core Portfolio" | ||||||
PowerShares Fundamental Pure Large Growth Portfolio (PXLG) | "Fundamental Pure Large Growth Portfolio" | ||||||
PowerShares Fundamental Pure Large Value Portfolio (PXLV) | "Fundamental Pure Large Value Portfolio" | ||||||
PowerShares Fundamental Pure Mid Core Portfolio (PXMC) | "Fundamental Pure Mid Core Portfolio" | ||||||
PowerShares Fundamental Pure Mid Growth Portfolio (PXMG) | "Fundamental Pure Mid Growth Portfolio" | ||||||
PowerShares Fundamental Pure Mid Value Portfolio (PXMV) | "Fundamental Pure Mid Value Portfolio" | ||||||
PowerShares Fundamental Pure Small Core Portfolio (PXSC) | "Fundamental Pure Small Core Portfolio" | ||||||
PowerShares Fundamental Pure Small Growth Portfolio (PXSG) | "Fundamental Pure Small Growth Portfolio" | ||||||
PowerShares Fundamental Pure Small Value Portfolio (PXSV) | "Fundamental Pure Small Value Portfolio" | ||||||
PowerShares Zacks Micro Cap Portfolio (PZI) | "Zacks Micro Cap Portfolio" | ||||||
Each portfolio (a "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 market prices of each Fund's Shares may differ to some degree from the Fund's net asset value ("NAV"). 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 generally in-kind for securities included in the relevant index. Except when aggregated in Creation Units by Authorized Participants, the Shares are not individually redeemable securities of the Funds.
The investment objective of each Fund is to seek investment results that generally correspond (before fees and expenses) to the price and yield of its respective index listed below (each, an "Underlying Index"):
Fund | Index | ||||||
Dynamic Large Cap Growth Portfolio | Dynamic Large Cap Growth IntellidexSM Index | ||||||
Dynamic Large Cap Value Portfolio | Dynamic Large Cap Value IntellidexSM Index | ||||||
Fundamental Pure Large Core Portfolio | RAFI® Fundamental Large Core Index | ||||||
Fundamental Pure Large Growth Portfolio | RAFI® Fundamental Large Growth Index | ||||||
Fundamental Pure Large Value Portfolio | RAFI® Fundamental Large Value Index | ||||||
84
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
Fund | Index | ||||||
Fundamental Pure Mid Core Portfolio | RAFI® Fundamental Mid Core Index | ||||||
Fundamental Pure Mid Growth Portfolio | RAFI® Fundamental Mid Growth Index | ||||||
Fundamental Pure Mid Value Portfolio | RAFI® Fundamental Mid Value Index | ||||||
Fundamental Pure Small Core Portfolio | RAFI® Fundamental Small Core Index | ||||||
Fundamental Pure Small Growth Portfolio | RAFI® Fundamental Small Growth Index | ||||||
Fundamental Pure Small Value Portfolio | RAFI® Fundamental Small Value Index | ||||||
Zacks Micro Cap Portfolio | Zacks Micro Cap IndexTM | ||||||
Note 2. Significant Accounting Policies
The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America ("GAAP") 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. 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
85
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
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 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 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
Index Risk. Unlike many investment companies, the Funds do not utilize an investing strategy that seeks returns in excess of each Fund's respective Underlying Index. Therefore, a Fund would not necessarily buy or sell a security unless that security is added or removed, respectively, from its respective Underlying Index, even if that security generally is underperforming.
Concentration Risk. A significant percentage of a Fund's Underlying Index may be comprised of issuers in a single industry or sector of the economy. If the Fund is focused in an industry or sector, it may present more risks than if it were broadly diversified over numerous industries and sectors of the economy. At times, such industry or group of industries may be out of favor and underperform other industries of the market as a whole. Any factors detrimental to the performance of such industry or sector will disproportionately impact the Fund's NAV.
REIT Risk. Although the Fund will not invest in real estate directly, the REITs in which the Fund invests are subject to risks inherent in the direct ownership of real estate. These risks include, but are not limited to, a possible lack of mortgage funds and associated interest rate risks, overbuilding, property vacancies, increases in property taxes and operating expenses, changes in zoning laws, losses due to environmental damages and changes in neighborhood values and appeal to purchasers.
86
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
Equity Risk. Equity risk is the risk that the value of the securities the Fund holds will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities the Fund holds participate or factors relating to specific companies in which the Fund invests. For example, an adverse event, such as an unfavorable earnings report, may depress the value of equity securities the Fund holds; the price of common stock may be particularly sensitive to general movements in the stock market; or a drop in the stock market may depress the price of most or all of the common stocks and other equity securities the Fund holds. In addition, common stock in the Fund's portfolio may decline in price if the issuer fails to make anticipated dividend payments because, among other reasons, the issuer of the security experiences a decline in its financial condition. Common stock is subordinated to preferred stocks, bonds and other debt instruments in a company's capital structure, in terms of priority to corporate income, and therefore will be subject to greater dividend risk than preferred stocks or debt instruments of such issuers.
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.
Small and Medium Capitalization Company Risk. Investing in securities of small and medium capitalization companies involves greater risk than customarily is associated with investing in larger, more established companies. These companies' securities may be more volatile and less liquid than those of more established companies. These securities may have returns that vary, sometimes significantly, from the overall securities market. Often small and medium capitalization companies and the industries in which they focus are still evolving and they may be more sensitive to changing market conditions.
Large Capitalization Company Risk. Returns on investments in securities of large capitalization U.S. companies could trail the returns on investments in stocks of smaller companies.
Micro Capitalization Company Risk. The Zacks Micro Cap Portfolio's investments in the securities of micro capitalization companies involve substantially greater risks of loss and price fluctuations. Micro capitalization companies carry additional risks because their earnings and revenues tend to be less predictable (and some companies may be experiencing significant losses), and their share prices tend to be more volatile and their markets less liquid than companies with larger market capitalizations. Also, it may take a long time before the Fund realizes a gain, if any, on an investment in a micro capitalization company.
Non-Diversified Fund Risk. Fundamental Pure Large Growth Portfolio and Fundamental Pure Large Value Portfolio are non-diversified and can invest a greater portion of its assets in securities of individual issuers than can 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. This may increase the Funds' volatility and cause the performance of a relatively small number of issuers to have a greater impact on a Fund's performance.
Core Risk. For the Fundamental Pure Large Core Portfolio, Fundamental Pure Mid Core Portfolio and Fundamental Pure Small Core Portfolio, the returns on "core" securities may or may not move in tandem
87
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
with the returns on other styles of investing or the overall stock market. Thus, the value of the Fund's investments will vary and at times may be lower or higher than that of other types of investments.
Value Risk. For the Dynamic Large Cap Value Portfolio, Fundamental Pure Large Value Portfolio, Fundamental Pure Mid Value Portfolio and the Fundamental Pure Small Value Portfolio, "value" securities are subject to the risk that the valuations never improve or that the returns on "value" securities are less than returns on other styles of investing or the overall stock market. Thus, the value of the Fund's investments will vary and at times may be lower or higher than that of other types of investments.
Growth Risk. For the Dynamic Large Cap Growth Portfolio, Fundamental Pure Large Growth Portfolio, Fundamental Pure Mid Growth Portfolio and the Fundamental Pure Small Growth Portfolio, the market values of "growth" securities may be more volatile than other types of investments. The returns on "growth" securities may or may not move in tandem with the returns on other styles of investing or the overall stock market. Thus, the value of the Fund's investments will vary and at times may be lower or higher than that of other types of investments.
C. Federal Income Taxes
Each Fund intends to comply with the provisions of the Internal Revenue Code of 1986, as amended (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 U.S. federal tax returns and tax returns in 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 that are directly identifiable to a specific Fund are applied to that Fund. Expenses of the Trust that 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.
88
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
Each Fund is responsible for all 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, sub-licensing fees related to its respective Underlying Index, any distribution fees or expenses, litigation expenses, fees payable to the Trust's Board members who are not "interested persons" (as defined in the 1940 Act) of the Trust or Invesco PowerShares Capital Management LLC ( the "Adviser") (the "Independent Trustees"), expenses incurred in connection with the Board members' services, including travel expenses and legal fees of counsel for the Independent Trustees, and extraordinary expenses.
To the extent a Fund invests in other investment companies, the expenses shown in the accompanying financial statements reflect the expenses of the Fund and do not include any expenses of the investment companies in which it invests. The effects of the investment companies expenses are included in the realized and unrealized gain/loss on the investments in the investment companies.
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, annually in cash and records them 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 of the 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. Securities Lending
Effective January 1, 2012, the Fundamental Pure Small Value Portfolio and Zacks Micro Cap Portfolio may lend portfolio securities having a market value up to one-third of the Fund's total assets. Such loans are secured by cash collateral equal to no less than 102% of the market value of the loaned securities determined daily by the securities lending provider. Cash collateral received in connection with these loans is invested in an affiliated money market fund and is shown as such on the Schedule of Investments. It is the policy of these Funds to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to a Fund if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. A Fund could experience delays and costs in gaining access to the collateral. A Fund bears the risk of any deficiency in the amount
89
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, is included in Affiliated securities lending income on the Statements of Operations. The aggregate value of securities out on loan is shown on the Statements of Assets and Liabilities, if any.
Note 3. Investment Advisory Agreement and Other Agreements
The Trust has entered into an Investment Advisory Agreement pursuant to which the Adviser has overall responsibility 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 the Dynamic Large Cap Growth Portfolio, Dynamic Large Cap Value Portfolio and Zacks Micro Cap Portfolio) has agreed to pay the Adviser an annual fee of 0.29% of the Fund's average daily net assets. Prior to June 16, 2011, each Fund (except for Dynamic Large Cap Growth Portfolio, Dynamic Large Cap Value Portfolio and Zacks Micro Cap Portfolio) agreed to pay the Adviser an annual fee of 0.50% of the Fund's average daily net assets. Each of the Dynamic Large Cap Growth Portfolio, Dynamic Large Cap Value Portfolio and Zacks Micro Cap Portfolio 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 "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 (excluding interest expenses, brokerage commissions and other trading expenses, offering costs, taxes, expenses of the investment companies that are paid indirectly as a result of share ownership of the investment companies, and extraordinary expenses) of each Fund (except for the Dynamic Large Cap Growth Portfolio, Dynamic Large Cap Value Portfolio and Zacks Micro Cap Portfolio) from exceeding 0.39% of the Fund's average daily net assets per year (the "Expense Cap"), at least until August 31, 2013. Prior to June 16, 2011, the Expense Cap for each Fund (except for Dynamic Large Cap Growth Portfolio, Dynamic Large Cap Value Portfolio and Zacks Micro Cap Portfolio) was 0.60% of the Fund's average daily net assets per year. The Expense Cap for each of Dynamic Large Cap Growth Portfolio, Dynamic Large Cap Value Portfolio and Zacks Micro Cap Portfolio is 0.60% of the Fund's average daily net assets per year, at least until August 31, 2013, and sub-licensing fees are excluded from the expenses subject to the Expense Cap for these Funds in addition to the excluded expenses above. 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 Expense Agreement provides that the fees waived or expenses borne by the Adviser are subject to recapture by the Adviser for up to three years from the date the fee was waived 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 year ended April 30, 2012, the Adviser has reimbursed the Fundamental Pure Small Growth Portfolio for an economic loss of $12,745 as a result of a trading related activity.
90
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
The amounts available for potential future recapture by the Adviser under the Expense Agreement and the expiration schedule at April 30, 2012 are as follows:
Total Potential | Potential Recapture Amounts Expiring | ||||||||||||||||||
Recapture Amount | 04/30/13 | 04/30/14 | 04/30/15 | ||||||||||||||||
Fundamental Pure Large Core Portfolio | $ | 319,264 | $ | 87,338 | $ | 112,727 | $ | 119,199 | |||||||||||
Fundamental Pure Large Growth Portfolio | 129,956 | — | — | 129,956 | |||||||||||||||
Fundamental Pure Large Value Portfolio | 133,196 | — | — | 133,196 | |||||||||||||||
Fundamental Pure Mid Core Portfolio | 342,663 | 100,743 | 120,297 | 121,623 | |||||||||||||||
Fundamental Pure Mid Growth Portfolio | 200,576 | 12,077 | 67,548 | 120,951 | |||||||||||||||
Fundamental Pure Mid Value Portfolio | 316,714 | 88,953 | 110,527 | 117,234 | |||||||||||||||
Fundamental Pure Small Core Portfolio | 358,046 | 104,165 | 128,503 | 125,378 | |||||||||||||||
Fundamental Pure Small Growth Portfolio | 324,276 | 96,747 | 112,773 | 114,756 | |||||||||||||||
Fundamental Pure Small Value Portfolio | 301,244 | 74,211 | 106,105 | 120,928 | |||||||||||||||
Zacks Micro Cap Portfolio | 327,335 | 109,697 | 115,423 | 102,215 |
The Trust has entered into a Distribution Agreement with Invesco 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 Distributor is an affiliate of the Adviser.
The Adviser has entered into a licensing agreement for each Fund with the following entities (each, a "Licensor"):
Fund | Licensors | ||||||
Dynamic Large Cap Growth Portfolio | NYSE Arca | ||||||
Dynamic Large Cap Value Portfolio | NYSE Arca | ||||||
Fundamental Pure Large Core Portfolio | Research Affiliates, LLC | ||||||
Fundamental Pure Large Growth Portfolio | Research Affiliates, LLC | ||||||
Fundamental Pure Large Value Portfolio | Research Affiliates, LLC | ||||||
Fundamental Pure Mid Core Portfolio | Research Affiliates, LLC | ||||||
Fundamental Pure Mid Growth Portfolio | Research Affiliates, LLC | ||||||
Fundamental Pure Mid Value Portfolio | Research Affiliates, LLC | ||||||
Fundamental Pure Small Core Portfolio | Research Affiliates, LLC | ||||||
Fundamental Pure Small Growth Portfolio | Research Affiliates, LLC | ||||||
Fundamental Pure Small Value Portfolio | Research Affiliates, LLC | ||||||
Zacks Micro Cap Portfolio | Zacks Investment Research, Inc. | ||||||
Each Underlying Index name trademark is owned by its respective Licensor. These trademarks have been licensed to the Adviser for use with the Funds. Each Fund is entitled to use its Underlying Index pursuant to the Trust's sub-licensing agreement with the Adviser. The Funds are required to pay the sub-licensing fees that are shown on the Statements of Operations. 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 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 Funds.
91
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
Note 4. Investments in Affiliates
The Adviser is a subsidiary of Invesco Ltd. and therefore Invesco Ltd. and Invesco Mortgage Capital, Inc. REIT are considered to be affiliated with the Fundamental Pure Mid Growth Portfolio and Fundamental Pure Small Growth Portfolio, respectively. The table below shows the Fund's transactions in and earnings from the investment in Invesco Ltd. and Invesco Mortgage Capital, Inc. REIT for the year ended April 30, 2012.
Fundamental Pure Mid Growth Portfolio
Value April 30, 2011 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain (Loss) | Value April 30, 2012 | Dividend Income | |||||||||||||||||||||||||
Invesco Ltd. | $ | — | $ | 905,490 | $ | (42,539 | ) | $ | (42,806 | ) | $ | (2,213 | ) | $ | 817,932 | $ | — |
Fundamental Pure Small Growth Portfolio
Value April 30, 2011 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain (Loss) | Value April 30, 2012 | Dividend Income | |||||||||||||||||||||||||
Invesco Mortgage Capital, Inc. REIT | $ | — | $ | 129,523 | $ | (6,492 | ) | $ | (3,948 | ) | $ | (454 | ) | $ | 118,629 | $ | 4,597 |
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, yield curves, loss severities, default rates, discount rates, volatilities 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.
As of April 30, 2012, the securities in each Fund were valued based on Level 1 inputs (see Schedule of Investments for security categories). 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.
92
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
During the fiscal year ended April 30, 2012, there were no significant transfers between investment levels.
Note 6. Distributions to Shareholders and Tax Components of Net Assets
Tax Character of Distributions to Shareholders Paid During the Years Ended April 30, 2012 and 2011:
2012 | 2011 | ||||||||||||||||||
Ordinary Income | Return of Capital | Ordinary Income | Return of Capital | ||||||||||||||||
Dynamic Large Cap Growth Portfolio | $ | 1,510,509 | $ | — | $ | 1,450,284 | $ | — | |||||||||||
Dynamic Large Cap Value Portfolio | 9,491,440 | — | 8,397,017 | — | |||||||||||||||
Fundamental Pure Large Core Portfolio | 670,286 | — | 523,166 | — | |||||||||||||||
Fundamental Pure Large Growth Portfolio | 17,066 | — | — | — | |||||||||||||||
Fundamental Pure Large Value Portfolio | 132,239 | — | — | — | |||||||||||||||
Fundamental Pure Mid Core Portfolio | 227,420 | — | 196,204 | — | |||||||||||||||
Fundamental Pure Mid Growth Portfolio | 355,610 | — | — | 344,520 | |||||||||||||||
Fundamental Pure Mid Value Portfolio | 458,896 | — | 393,205 | — | |||||||||||||||
Fundamental Pure Small Core Portfolio | 102,977 | — | 69,608 | — | |||||||||||||||
Fundamental Pure Small Growth Portfolio | — | — | — | — | |||||||||||||||
Fundamental Pure Small Value Portfolio | 687,907 | — | 788,255 | — | |||||||||||||||
Zacks Micro Cap Portfolio | 599,475 | — | 446,555 | — |
Tax Components of Net Assets at Year-End:
Undistributed Ordinary Income | Temporary Book/Tax Differences | Net Unrealized Appreciation (Depreciation)— Investments | Net Unrealized Appreciation (Depreciation)— Other Investments | Capital Loss Carryforward | Post-October Capital Deferrals* | Shares of Beneficial Interest | Total Net Assets | ||||||||||||||||||||||||||||
Dynamic Large Cap Growth Portfolio | $ | 305,036 | $ | (16,615 | ) | $ | 38,084,610 | $ | — | $ | (251,330,756 | ) | $ | (6,678,315 | ) | $ | 410,649,223 | $ | 191,013,183 | ||||||||||||||||
Dynamic Large Cap Value Portfolio | 1,390,418 | (15,180 | ) | 38,386,819 | — | (118,050,674 | ) | (9,901,314 | ) | 507,930,325 | 419,740,394 | ||||||||||||||||||||||||
Fundamental Pure Large Core Portfolio | 75,522 | (5,802 | ) | 1,590,299 | — | (11,029,660 | ) | (43,003 | ) | 34,738,671 | 25,326,027 | ||||||||||||||||||||||||
Fundamental Pure Large Growth Portfolio | 16,961 | (812 | ) | 186,037 | — | (264 | ) | (9,826 | ) | 4,247,920 | 4,440,016 | ||||||||||||||||||||||||
Fundamental Pure Large Value Portfolio | 18,741 | (826 | ) | 500,039 | — | (888 | ) | (3,657 | ) | 7,635,006 | 8,148,415 | ||||||||||||||||||||||||
Fundamental Pure Mid Core Portfolio | 38,901 | (5,440 | ) | 96,960 | — | (10,045,091 | ) | (481,761 | ) | 29,019,176 | 18,622,745 | ||||||||||||||||||||||||
Fundamental Pure Mid Growth Portfolio | 246,409 | (11,533 | ) | 1,734,284 | — | (167,559,413 | ) | (3,192,744 | ) | 255,986,399 | 87,203,402 | ||||||||||||||||||||||||
Fundamental Pure Mid Value Portfolio | 80,948 | (6,572 | ) | 695,587 | — | (44,934,277 | ) | (501,807 | ) | 77,073,830 | 32,407,709 |
93
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
Undistributed Ordinary Income | Temporary Book/Tax Differences | Net Unrealized Appreciation (Depreciation)— Investments | Net Unrealized Appreciation (Depreciation)— Other Investments | Capital Loss Carryforward | Post-October Capital Deferrals* | Shares of Beneficial Interest | Total Net Assets | ||||||||||||||||||||||||||||
Fundamental Pure Small Core Portfolio | $ | 49,139 | $ | (5,251 | ) | $ | 265,621 | $ | — | $ | (9,253,651 | ) | $ | (418,180 | ) | $ | 25,097,369 | $ | 15,735,047 | ||||||||||||||||
Fundamental Pure Small Growth Portfolio | 218,961 | (6,297 | ) | (292,138 | ) | — | (48,770,442 | ) | (1,433,277 | ) | 81,195,844 | 30,912,651 | |||||||||||||||||||||||
Fundamental Pure Small Value Portfolio | 145,922 | (7,293 | ) | 466,820 | — | (45,529,488 | ) | (1,274,943 | ) | 98,510,567 | 52,311,585 | ||||||||||||||||||||||||
Zacks Micro Cap Portfolio | 69,574 | (7,275 | ) | 2,124,259 | (901 | ) | (88,382,130 | ) | (2,843,190 | ) | 123,058,370 | 34,018,707 |
* The Funds elected to defer capital losses incurred after October 31 ("Post-October Capital 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 Regulated Investment Company Modernization Act of 2010 (the "Act") eliminated the eight-year carryover period for capital losses that arise in taxable years beginning after its enactment date of December 22, 2010. Consequently, these capital losses can be carried forward for an unlimited period. However, capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Additionally, post-enactment capital loss carryforwards will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. 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, 2012, which expire as of April 30 of each year listed below:
Post-effective no expiration | |||||||||||||||||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | 2019 | Short-term | Long-term | Total* | |||||||||||||||||||||||||||||||
Dynamic Large Cap Growth Portfolio | $ | 191,864 | $ | 10,916,066 | $ | 14,024,455 | $ | 68,715,641 | $ | 131,638,879 | $ | 15,986,258 | $ | 8,637,984 | $ | 1,219,609 | $ | 251,330,756 | |||||||||||||||||||||
Dynamic Large Cap Value Portfolio | 70,814 | 1,378,743 | 2,783,761 | 22,558,581 | 56,819,182 | 17,964,198 | 11,973,345 | 4,502,050 | 118,050,674 | ||||||||||||||||||||||||||||||
Fundamental Pure Large Core Portfolio | — | — | 87,112 | 2,328,337 | 5,621,834 | 1,626,267 | 1,169,620 | 196,490 | 11,029,660 | ||||||||||||||||||||||||||||||
Fundamental Pure Large Growth Portfolio | — | — | — | — | — | — | 264 | — | 264 | ||||||||||||||||||||||||||||||
Fundamental Pure Large Value Portfolio | — | — | — | — | — | — | 888 | — | 888 | ||||||||||||||||||||||||||||||
Fundamental Pure Mid Core Portfolio | — | — | 628,828 | 3,815,763 | 3,611,366 | 741,893 | 1,172,149 | 75,092 | 10,045,091 | ||||||||||||||||||||||||||||||
Fundamental Pure Mid Growth Portfolio | 422,220 | 8,055,857 | 5,112,579 | 54,769,394 | 82,364,246 | 12,021,724 | 4,813,393 | — | 167,559,413 | ||||||||||||||||||||||||||||||
Fundamental Pure Mid Value Portfolio | 237,806 | 2,384,765 | 5,347,255 | 12,697,113 | 18,996,863 | 2,751,107 | 2,352,586 | 166,782 | 44,934,277 | ||||||||||||||||||||||||||||||
Fundamental Pure Small Core Portfolio | — | — | 1,028,299 | 2,738,120 | 2,009,294 | 2,491,519 | 826,584 | 159,835 | 9,253,651 | ||||||||||||||||||||||||||||||
Fundamental Pure Small Growth Portfolio | 823,782 | 13,094,039 | 6,666,558 | 9,888,431 | 10,392,627 | 4,547,805 | 3,357,200 | — | 48,770,442 | ||||||||||||||||||||||||||||||
Fundamental Pure Small Value Portfolio | 703,862 | 3,929,009 | 8,615,687 | 16,547,947 | 9,588,502 | 5,376,983 | 767,498 | — | 45,529,488 | ||||||||||||||||||||||||||||||
Zacks Micro Cap Portfolio | 1,951,245 | 15,172,527 | 14,330,930 | 28,782,755 | 12,380,833 | 7,234,973 | 8,528,867 | — | 88,382,130 |
* Capital loss carryforward as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code.
94
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
Note 7. Investment Transactions
For the fiscal year ended April 30, 2012, 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 | $ | 116,093,758 | $ | 115,818,088 | |||||||
Dynamic Large Cap Value Portfolio | 164,094,871 | 165,418,535 | |||||||||
Fundamental Pure Large Core Portfolio | 15,262,882 | 16,454,260 | |||||||||
Fundamental Pure Large Growth Portfolio | 74,704 | 309,206 | |||||||||
Fundamental Pure Large Value Portfolio | 151,898 | 231,680 | |||||||||
Fundamental Pure Mid Core Portfolio | 17,440,823 | 17,338,617 | |||||||||
Fundamental Pure Mid Growth Portfolio | 76,526,470 | 75,086,500 | |||||||||
Fundamental Pure Mid Value Portfolio | 28,072,839 | 27,462,923 | |||||||||
Fundamental Pure Small Core Portfolio | 15,187,419 | 15,817,912 | |||||||||
Fundamental Pure Small Growth Portfolio | 101,117,764 | 103,139,894 | |||||||||
Fundamental Pure Small Value Portfolio | 62,970,837 | 63,714,498 | |||||||||
Zacks Micro Cap Portfolio | 33,406,335 | 36,273,986 |
For the fiscal year ended April 30, 2012, in-kind transactions associated with creations and redemptions were as follows:
Securities Received | Securities Delivered | ||||||||||
Dynamic Large Cap Growth Portfolio | $ | 120,834,297 | $ | 135,886,067 | |||||||
Dynamic Large Cap Value Portfolio | 352,863,093 | 358,754,305 | |||||||||
Fundamental Pure Large Core Portfolio | 29,525,414 | 37,982,987 | |||||||||
Fundamental Pure Large Growth Portfolio | 6,155,625 | 1,793,548 | |||||||||
Fundamental Pure Large Value Portfolio | 15,198,265 | 7,584,441 | |||||||||
Fundamental Pure Mid Core Portfolio | 27,640,421 | 31,685,358 | |||||||||
Fundamental Pure Mid Growth Portfolio | 121,121,666 | 155,218,149 | |||||||||
Fundamental Pure Mid Value Portfolio | 38,754,161 | 48,022,072 | |||||||||
Fundamental Pure Small Core Portfolio | 18,998,195 | 20,583,402 | |||||||||
Fundamental Pure Small Growth Portfolio | 132,896,878 | 193,789,787 | |||||||||
Fundamental Pure Small Value Portfolio | 56,036,648 | 71,591,559 | |||||||||
Zacks Micro Cap Portfolio | 29,439,825 | 83,683,928 |
Gains and losses on in-kind transactions are generally not considered taxable gains and losses for Federal income tax purposes.
At April 30, 2012, 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 Large Cap Growth Portfolio | $ | 153,050,912 | $ | 38,084,610 | $ | 38,290,783 | $ | (206,173 | ) | ||||||||||
Dynamic Large Cap Value Portfolio | 381,246,485 | 38,386,819 | 40,172,701 | (1,785,882 | ) |
95
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
Cost* | Net Unrealized Appreciation (Depreciation) | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | ||||||||||||||||
Fundamental Pure Large Core Portfolio | $ | 23,783,939 | $ | 1,590,299 | $ | 2,135,167 | $ | (544,868 | ) | ||||||||||
Fundamental Pure Large Growth Portfolio | 4,336,065 | 186,037 | 275,786 | (89,749 | ) | ||||||||||||||
Fundamental Pure Large Value Portfolio | 7,730,673 | 500,039 | 675,841 | (175,802 | ) | ||||||||||||||
Fundamental Pure Mid Core Portfolio | 18,602,238 | 96,960 | 962,013 | (865,053 | ) | ||||||||||||||
Fundamental Pure Mid Growth Portfolio | 85,582,037 | 1,734,284 | 7,177,034 | (5,442,750 | ) | ||||||||||||||
Fundamental Pure Mid Value Portfolio | 31,800,243 | 695,587 | 2,371,590 | (1,676,003 | ) | ||||||||||||||
Fundamental Pure Small Core Portfolio | 15,552,209 | 265,621 | 1,070,282 | (804,661 | ) | ||||||||||||||
Fundamental Pure Small Growth Portfolio | 31,280,246 | (292,138 | ) | 2,216,603 | (2,508,741 | ) | |||||||||||||
Fundamental Pure Small Value Portfolio | 54,080,541 | 466,820 | 4,098,128 | (3,631,308 | ) | ||||||||||||||
Zacks Micro Cap Portfolio | 32,422,922 | 2,124,259 | 3,793,587 | (1,669,328 | ) |
* Cost of investments on a tax basis, includes the adjustments for financial reporting purposes, as of the most recently completed Federal income tax reporting period-end.
Note 8. Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of in-kind transactions and utilization of book equalization, on April 30, 2012, 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, 2012, the reclassifications were as follows:
Undistributed Net Investment Income (Loss) | Undistributed Net Realized Gain (Loss) | Shares of Beneficial Interest | |||||||||||||
Dynamic Large Cap Growth Portfolio | $ | 5,376 | $ | (25,568,048 | ) | $ | 25,562,672 | ||||||||
Dynamic Large Cap Value Portfolio | 69,378 | (40,952,559 | ) | 40,883,181 | |||||||||||
Fundamental Pure Large Core Portfolio | 50,168 | (5,165,223 | ) | 5,115,055 | |||||||||||
Fundamental Pure Large Growth Portfolio | — | (133,696 | ) | 133,696 | |||||||||||
Fundamental Pure Large Value Portfolio | — | (118,327 | ) | 118,327 | |||||||||||
Fundamental Pure Mid Core Portfolio | 1,139 | (4,327,609 | ) | 4,326,470 | |||||||||||
Fundamental Pure Mid Growth Portfolio | 19,512 | (16,161,128 | ) | 16,141,616 | |||||||||||
Fundamental Pure Mid Value Portfolio | (6,521 | ) | (6,095,132 | ) | 6,101,653 | ||||||||||
Fundamental Pure Small Core Portfolio | 3,511 | (3,037,812 | ) | 3,034,301 | |||||||||||
Fundamental Pure Small Growth Portfolio | (285,373 | ) | (1,391,570 | ) | 1,676,943 | ||||||||||
Fundamental Pure Small Value Portfolio | 5,003 | (8,575,450 | ) | 8,570,447 | |||||||||||
Zacks Micro Cap Portfolio | (139,541 | ) | (7,366,994 | ) | 7,506,535 |
Note 9. Trustees' Fees
The Funds compensate each Independent Trustee. The Trustees who are affiliated with the Adviser (the "Non-Independent Trustees") of the Trust do not receive any Trustees' fees.
The Trust has adopted a deferred compensation plan (the "Plan"). Under the Plan, an Independent Trustee who 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 select PowerShares Funds. The Deferral Fees payable to the Participating Trustee are valued as of the date such Fees would have been paid to the Participating Trustee. The value increases with contributions or with
96
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
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. Transactions in capital shares for each Fund are disclosed in detail on the Statements of Changes in Net Assets.
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.
97
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 PowerShares Dynamic Large Cap Growth Portfolio, PowerShares Dynamic Large Cap Value Portfolio, PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Core Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio, PowerShares Fundamental Pure Small Growth Portfolio, PowerShares Fundamental Pure Small Value Portfolio and PowerShares Zacks Micro Cap Portfolio (each an individual portfolio of PowerShares Exchange-Traded Fund Trust, hereafter referred to as the "Funds") at April 30, 2012, the results of each of their operations for the period then ended, and the change 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 Funds' 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, 2012 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Chicago, IL
June 25, 2012
98
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, 2012:
Federal Income Tax Information
Qualified dividend income* | Dividends-received deduction* | ||||||||||
Dynamic Large Cap Growth Portfolio | 100 | % | 100 | % | |||||||
Dynamic Large Cap Value Portfolio | 100 | % | 100 | % | |||||||
Fundamental Pure Large Core Portfolio | 100 | % | 100 | % | |||||||
Fundamental Pure Large Growth Portfolio | 100 | % | 100 | % | |||||||
Fundamental Pure Large Value Portfolio | 100 | % | 100 | % | |||||||
Fundamental Pure Mid Core Portfolio | 100 | % | 100 | % | |||||||
Fundamental Pure Mid Growth Portfolio | 100 | % | 100 | % | |||||||
Fundamental Pure Mid Value Portfolio | 100 | % | 100 | % | |||||||
Fundamental Pure Small Core Portfolio | 94 | % | 90 | % | |||||||
Fundamental Pure Small Growth Portfolio | 0 | % | 0 | % | |||||||
Fundamental Pure Small Value Portfolio | 100 | % | 100 | % | |||||||
Zacks Micro Cap Portfolio | 100 | % | 100 | % |
* The above percentages are based on ordinary income dividends paid to shareholders during the Fund's fiscal year.
99
Supplemental Information
Trustees and Officers
The Independent Trustees, the Non-Independent 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, 2012.
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 During the Past 5 Years | ||||||||||||||||||
Ronn R. Bagge (54) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road 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) | 120 | None | ||||||||||||||||||
Todd J. Barre (54) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Trustee | Since 2010 | Assistant Professor of Business, Trinity Christian College (2010-Present); formerly, 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 | 120 | None | ||||||||||||||||||
* This is the date the Independent 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, 2012, the Fund Complex consisted of the Trust's 58 portfolios and three other exchange-traded fund trusts with 62 portfolios advised by the Adviser.
100
Supplemental Information (Continued)
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 During the Past 5 Years | ||||||||||||||||||
Marc M. Kole (51) 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) | 120 | None | ||||||||||||||||||
Philip M. Nussbaum (50) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Trustee | Since 2003 | Chairman, Performance Trust Capital Partners (2004-Present) | 120 | None | ||||||||||||||||||
* This is the date the Independent 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, 2012, the Fund Complex consisted of the Trust's 58 portfolios and three other exchange-traded fund trusts with 62 portfolios advised by the Adviser.
101
Supplemental Information (Continued)
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 During the Past 5 Years | ||||||||||||||||||
Donald H. Wilson (52) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Chairman of the Board and Trustee | Trustee since 2006; Chair since 2012 | 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) | 120 | None | ||||||||||||||||||
* This is the date the Independent 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, 2012, the Fund Complex consisted of the Trust's 58 portfolios and three other exchange-traded fund trusts with 62 portfolios advised by the Adviser.
102
Supplemental Information (Continued)
Trustees and Officers (Continued)
The Non-Independent Trustees and the executive officers of the Trust, their term of office and length of time served, their principal business occupations during the past five years, the number of portfolios in the Fund Complex overseen by the Non-Independent Trustees and the other directorships, if any, held by the Trustees are shown below.
Name, Address, and Age of Non-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 Non-Independent Trustees | Other Directorships Held by Non-Independent Trustees During the Past 5 Years | ||||||||||||||||||
H. Bruce Bond (48) Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | 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) | 120 | None | ||||||||||||||||||
* This is the date the Non-Independent 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, 2012, the Fund Complex consisted of the Trust's 58 portfolios and three other exchange-traded fund trusts with 62 portfolios advised by the Adviser.
103
Supplemental Information (Continued)
Trustees and Officers (Continued)
Name, Address, and Age of Non-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 Non-Independent Trustees | Other Directorships Held by Non-Independent Trustees During the Past 5 Years | ||||||||||||||||||
Kevin M. Carome (55) 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 | 120 | None | ||||||||||||||||||
* This is the date the Non-Independent 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, 2012, the Fund Complex consisted of the Trust's 58 portfolios and three other exchange-traded fund trusts with 62 portfolios advised by the Adviser.
104
Supplemental Information (Continued)
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 (37) Invesco Management Group, Inc. 11 Greenway Plaza Suite 1000 Houston, TX 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) | ||||||||||||
Benjamin Fulton (50) 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 (30) 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, Portfolio Manager, Invesco PowerShares Capital Management LLC (2007-2008); Research Analyst, Invesco PowerShares Capital Management LLC (2005-2007); Research Analyst and Trader, Ritchie Capital, a hedge fund operator (2003-2005) | ||||||||||||
David Warren (54) Invesco Canada Ltd. 5140 Yonge Street Suite 900 Toronto, Ontario M2N 6X7 | Vice President | Since 2009 | Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. and Chief Administrative Officer, North American Retail, Invesco Ltd (2007-Present); formerly, Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (2000-2006) | ||||||||||||
* This is the period for which the Officers began serving the Trust. Each Officer serves an indefinite term, until his or her successor is elected.
105
Supplemental Information (Continued)
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 | ||||||||||||
Christopher Joe (42) Invesco Management Group, Inc. 11 Greenway Plaza Suite 1000 Houston, TX 77046-1173 | Chief Compliance Officer | Since 2012 | U.S. Compliance Director, Invesco, Ltd.; Chief Compliance Officer, Invesco Investment Advisers, LLC (registered investment adviser); formerly, Assistant Fund Accounting Manager, Invesco, Ltd. | ||||||||||||
Sheri Morris (47) Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Treasurer | Since 2011 | Vice President, Treasurer and Principal Financial Officer, The Invesco Funds; Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) and Treasurer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Fund Trust. Formerly, Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.; Assistant Vice President and Assistant Treasurer, The Invesco Funds and Assistant Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc. | ||||||||||||
Anna Paglia (37) Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Secretary | Since 2011 | Head of Legal, Invesco PowerShares Capital Management LLC (2010-Present); formerly, Partner, K&L Gates LLP (formerly, Bell Boyd & Lloyd LLP) (2007-2010). Associate Counsel at Barclays Global Investors Ltd. (2004-2006) | ||||||||||||
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) 983-0903.
* This is the period for which the Officers began serving the Trust. Each Officer serves an indefinite term, until his or her successor is elected.
106
Board Considerations Regarding Approval of Continuation of Investment Advisory Agreement
At a meeting held on April 19, 2012, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust (the "Trust"), including the Independent Trustees, approved the continuation of the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the "Adviser") and the Trust for the following 56 series (each, a "Fund" and collectively, the "Funds"):
PowerShares Aerospace & Defense Portfolio
PowerShares Buyback AchieversTM Portfolio
PowerShares CleantechTM Portfolio
PowerShares Dividend AchieversTM Portfolio
PowerShares DWA Technical LeadersTM Portfolio
PowerShares Dynamic Banking Portfolio
PowerShares Dynamic Basic Materials Sector Portfolio
PowerShares Dynamic Biotechnology & Genome Portfolio
PowerShares Dynamic Building & Construction Portfolio
PowerShares Dynamic Consumer Discretionary Sector Portfolio
PowerShares Dynamic Consumer Staples Sector Portfolio
PowerShares Dynamic Energy Exploration & Production Portfolio
PowerShares Dynamic Energy Sector Portfolio
PowerShares Dynamic Financial Sector Portfolio
PowerShares Dynamic Food & Beverage Portfolio
PowerShares Dynamic Healthcare Sector Portfolio
PowerShares Dynamic Industrials Sector Portfolio
PowerShares Dynamic Insurance Portfolio
PowerShares Dynamic Large Cap Growth Portfolio
PowerShares Dynamic Large Cap Value Portfolio
PowerShares Dynamic Leisure and Entertainment Portfolio
PowerShares Dynamic MagniQuant Portfolio
PowerShares Dynamic Market Portfolio
PowerShares Dynamic Media Portfolio
PowerShares Dynamic Networking Portfolio
PowerShares Dynamic Oil & Gas Services Portfolio
PowerShares Dynamic OTC Portfolio
PowerShares Dynamic Pharmaceuticals Portfolio
PowerShares Dynamic Retail Portfolio
PowerShares Dynamic Semiconductors Portfolio
PowerShares Dynamic Software Portfolio
PowerShares Dynamic Technology Sector Portfolio
PowerShares Dynamic Utilities Portfolio
PowerShares Financial Preferred Portfolio
PowerShares FTSE RAFI US 1000 Portfolio
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio
PowerShares Fundamental Pure Large Core Portfolio
PowerShares Fundamental Pure Large Growth Portfolio
PowerShares Fundamental Pure Large Value Portfolio
PowerShares Fundamental Pure Mid Core Portfolio
PowerShares Fundamental Pure Mid Growth Portfolio
PowerShares Fundamental Pure Mid Value Portfolio
PowerShares Fundamental Pure Small Core Portfolio
PowerShares Fundamental Pure Small Growth Portfolio
PowerShares Fundamental Pure Small Value Portfolio
PowerShares Global Listed Private Equity Portfolio
PowerShares Golden Dragon Halter USX China Portfolio
PowerShares High Yield Equity Dividend AchieversTM Portfolio
PowerShares International Dividend AchieversTM Portfolio
PowerShares Lux Nanotech Portfolio
PowerShares Morningstar StockInvestor Core Portfolio
PowerShares S&P 500 High Quality Portfolio
PowerShares Water Resources Portfolio
PowerShares WilderHill Clean Energy Portfolio
PowerShares WilderHill Progressive Energy Portfolio
PowerShares Zacks Micro Cap Portfolio
107
Board Considerations Regarding Approval of 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 a Fund grows, (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 for the one-year, three-year, five-year and since-inception periods ended December 31, 2011, as applicable, including reports on the correlation and tracking error between each Fund's performance and the performance of its underlying index, as well as the Adviser's analysis of the tracking error between each Fund and its underlying index. The Trustees noted that for each applicable period 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 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 daily net assets for each Fund other than PowerShares Dividend Achievers(TM) Portfolio, PowerShares High Yield Equity Dividend Achievers(TM) Portfolio, PowerShares International Dividend Achievers(TM) Portfolio, PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Core Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio, PowerShares Fundamental Pure Small Growth Portfolio and PowerShares Fundamental Pure Small Value Portfolio;
108
Board Considerations Regarding Approval of Continuation of Investment Advisory Agreement (Continued)
• 0.40% of the Fund's average daily net assets for each of PowerShares Dividend Achievers(TM) Portfolio, PowerShares High Yield Equity Dividend Achievers(TM) Portfolio and PowerShares International Dividend Achievers(TM) Portfolio; and
• 0.29% of the Fund's average daily net assets for each of PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Core Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio, PowerShares Fundamental Pure Small Growth Portfolio and PowerShares Fundamental Pure Small Value Portfolio (for each of PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Mid Core Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio, PowerShares Fundamental Pure Small Growth Portfolio and PowerShares Fundamental Pure Small Value Portfolio, the Trustees noted that the advisory fee for each of these Funds was reduced to 0.29% effective June 16, 2011).
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, 2013, as set forth below:
• 0.60%, excluding interest expenses, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses 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, acquired fund fees and expenses and extraordinary expenses, for each of PowerShares Dividend Achievers(TM) Portfolio, PowerShares High Yield Equity Dividend Achievers(TM) Portfolio and PowerShares International Dividend Achievers(TM) Portfolio;
• 0.50%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for each of PowerShares Morningstar StockInvestor Core Portfolio and PowerShares S&P 500 High Quality Portfolio;
• 0.39%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for each of PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Core Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio, PowerShares Fundamental Pure Small Growth Portfolio and PowerShares Fundamental Pure Small Value Portfolio (for each of PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Mid Core Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio, PowerShares Fundamental Pure Small Growth Portfolio and PowerShares Fundamental Pure Small
109
Board Considerations Regarding Approval of Continuation of Investment Advisory Agreement (Continued)
Value Portfolio, the Trustees noted that the Expense Cap for each of these Funds was reduced to 0.39% effective June 16, 2011); and
• 0.60%, excluding interest expenses, licensing fees, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses 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 with comparable investment strategies as the Funds, except for PowerShares FTSE RAFI US 1000 Portfolio, and further noted the Adviser's representation that the advisory fee charged to the PowerShares FTSE RAFI US 1000 Portfolio was not higher than the fee the Adviser charged to its other clients with comparable investment strategies. The Trustees noted that each Fund's advisory fee (for the year ended December 31, 2011) 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 Global Listed Private Equity Portfolio and PowerShares Golden Dragon Halter USX China Portfolio, which was equal to or 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 Dynamic Large Cap Growth Portfolio, PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Growth Portfolio and PowerShares Fundamental Pure Small Value Portfolio, which was lower than the median advisory fee of its open-end index peer funds; and there was no comparable data for PowerShares Aerospace & Defense Portfolio, PowerShares Cleantech(TM) Portfolio, PowerShares Dynamic Banking Portfolio, PowerShares Dynamic Basic Materials Sector Portfolio, PowerShares Dynamic Biotechnology & Genome Portfolio, PowerShares Dynamic Building & Construction Portfolio, PowerShares Dynamic Consumer Discretionary Sector Portfolio, PowerShares Dynamic Consumer Staples Sector Portfolio, PowerShares Dynamic Financial Sector Portfolio, PowerShares Dynamic Food & Beverage Portfolio, PowerShares Dynamic Healthcare Sector Portfolio, PowerShares Dynamic Industrials Sector Portfolio, PowerShares Dynamic Insurance Portfolio, PowerShares Dynamic Leisure and Entertainment Portfolio, PowerShares Dynamic Media Portfolio, PowerShares Dynamic Pharmaceuticals Portfolio, PowerShares Dynamic Retail Portfolio, PowerShares Financial Preferred Portfolio, PowerShares Global Listed Private Equity Portfolio or PowerShares Golden Dragon Halter USX China 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, 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 (for the year ended December 31, 2011) 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, PowerShares
110
Board Considerations Regarding Approval of Continuation of Investment Advisory Agreement (Continued)
Golden Dragon Halter USX China Portfolio and PowerShares S&P 500 High Quality Portfolio, which was equal to or 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 Dividend Achievers(TM) Portfolio, PowerShares DWA Technical Leaders(TM) Portfolio, PowerShares Dynamic Energy Exploration & Production Portfolio, PowerShares Dynamic Energy Sector Portfolio, PowerShares Dynamic Large Cap Growth Portfolio, PowerShares Dynamic Large Cap Value Portfolio, PowerShares Dynamic Networking Portfolio, PowerShares Oil & Gas Services Portfolio, PowerShares Dynamic OTC Portfolio, PowerShares Dynamic Semiconductors Portfolio, PowerShares Dynamic Software Portfolio, PowerShares Dynamic Technology Sector Portfolio, PowerShares Dynamic Utilities Sector Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Core Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio, PowerShares Fundamental Pure Small Growth Portfolio, PowerShares Fundamental Pure Small Value Portfolio, PowerShares High Yield Equity Dividend Achievers(TM) Portfolio, PowerShares Lux Nanotech Portfolio, PowerShares S&P 500 High Quality Portfolio, PowerShares Water Resources Portfolio, PowerShares WilderHill Clean Energy Portfolio and PowerShares WilderHill Progressive Energy Portfolio, which was lower than the median expense ratio of its open-end index peer funds; and there was no comparable data for PowerShares Aerospace & Defense Portfolio, PowerShares Cleantech(TM) Portfolio, PowerShares Dynamic Banking Portfolio, PowerShares Dynamic Basic Materials Sector Portfolio, PowerShares Dynamic Biotechnology & Genome Portfolio, PowerShares Dynamic Building & Construction Portfolio, PowerShares Dynamic Consumer Discretionary Sector Portfolio, PowerShares Dynamic Consumer Staples Sector Portfolio, PowerShares Dynamic Financial Sector Portfolio, PowerShares Dynamic Food & Beverage Portfolio, PowerShares Dynamic Healthcare Sector Portfolio, PowerShares Dynamic Industrials Sector Portfolio, PowerShares Dynamic Insurance Portfolio, PowerShares Dynamic Leisure and Entertainment Portfolio, PowerShares Dynamic Media Portfolio, PowerShares Dynamic Pharmaceuticals Portfolio, PowerShares Dynamic Retail Portfolio, PowerShares Financial Preferred Portfolio, PowerShares Global Listed Private Equity Portfolio or PowerShares Golden Dragon Halter USX China 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, and noted those Funds for which license fees are included in the Funds' Expense Caps.
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
111
Board Considerations Regarding Approval of Continuation of Investment Advisory Agreement (Continued)
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 Portfolio 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 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.
112
Board Considerations Regarding Approval of Investment Advisory Agreement for PowerShares Fundamental Pure Large Growth Portfolio and PowerShares Fundamental Pure Large Value Portfolio
At a meeting held on March 22, 2011, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust (the "Trust"), including the Independent Trustees, approved the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the "Adviser") and the Trust for the PowerShares Fundamental Pure Large Growth Portfolio and PowerShares Fundamental Pure Large Value Portfolio (each, a "New Fund" and collectively, the "New Funds").
The Trustees reviewed information from the Adviser describing: (i) the nature, extent and quality of services to be provided, (ii) the costs of services to be provided and estimated profits to be realized by the Adviser, (iii) the extent to which economies of scale may be realized as each New Fund grows, (iv) whether fee levels reflect any possible economies of scale for the benefit of Fund shareholders, (v) comparisons of services rendered and amounts paid to other registered investment companies and (vi) any benefits to be realized by the Adviser from its relationships with the New Funds. Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the Investment Advisory Agreement for each New 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 to be performed by the Adviser for each New Fund, information describing the Adviser's current organization and staffing, including operations assistance provided by the Adviser's parent organization, Invesco Ltd., and the background and experience of the persons who will be responsible for the day-to-day management of the New Funds, and considered the quality of services provided by the Adviser to other exchange-traded funds ("ETFs"). The Trustees also reviewed information related to the Adviser's portfolio transaction policies and procedures, as well as reports on the correlation and tracking error between the underlying indexes and the performance of other ETFs for which the Adviser serves as investment adviser.
The Trustees also considered the services to be provided by the Adviser in its oversight of the New Funds' administrator, custodian and transfer agent. They noted the significant amount of time and effort that had been devoted to this oversight function for the other ETFs and that was expected to be provided for the New Funds.
Based on their review, the Trustees concluded that the nature, extent and quality of services to be provided by the Adviser to each New Fund under the Investment Advisory Agreement were expected to be appropriate and reasonable.
Fees, Expenses and Profitability. The Trustees reviewed and discussed the information provided by the Adviser on each New Fund's proposed advisory fee and net expense ratio, as compared to information compiled from Lipper Inc. databases on the average and median advisory fee and net expense ratio of comparable ETFs for each New Fund, as well as each New Fund's respective Lipper peer group, which includes ETF and non-ETF funds. The Trustees also noted the information compiled by the Adviser from Lipper Inc. databases on the advisory fees and net expense ratios of various types of ETFs and open-end actively managed funds that they had received in connection with the 2011 contract renewal process for other ETFs for which the Adviser serves as investment adviser. The Trustees also noted that the Adviser has agreed to waive a portion of its advisory fee and/or pay a portion of fund expenses for each New Fund (an "Expense Cap"). The Trustees noted that each New Fund's advisory fee and net expense ratio generally were within an acceptable range of the average and median advisory fees and net expense ratios
113
Board Considerations Regarding Approval of Investment Advisory Agreement for PowerShares Fundamental Pure Large Growth Portfolio and PowerShares Fundamental Pure Large Value Portfolio (Continued)
of the ETFs in its ETF universe, and were generally lower than the average and median advisory fees and net expense ratios of each New Fund's Lipper peer group. The Trustees considered each New Fund's proposed advisory fee in light of the higher administrative, operational and management oversight costs. The Trustees also noted the Adviser's representation that each New Fund's advisory fee was competitive with those of its ETF peers. The Board concluded that the advisory fee to be charged to each New Fund is reasonable and appropriate in light of the services expected to be provided.
In conjunction with their review of the advisory fee, the Trustees also considered information provided by the Adviser on the costs of services for the New Funds and the fees to be paid by the Adviser. The Trustees considered information provided by the Adviser on its profitability, as well as any profits or losses realized by the Adviser from its relationship with other ETFs for which it serves as investment adviser. The Trustees concluded that the estimated profits to be realized by the Adviser with respect to the New Funds appeared to be reasonable in comparison with the cost of providing investment advisory services to the New Funds.
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 may be realized as each New Fund grows and whether fee levels reflect economies of scale for the benefit of shareholders. The Trustees noted that any reduction in fixed costs associated with the management of a New Fund would be enjoyed by the Adviser if the expenses of the New Fund exceed its Expense Cap, but that shareholders of the New Fund would benefit from the lower expense ratio as a results of the New Fund's Expense Cap. The Trustees considered whether the advisory fee rate for each New Fund is reasonable in relation to the projected asset size of the New 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 would derive from its relationships with the New 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 Investment Advisory Agreement for each New Fund. No single factor was determinative in the Board's analysis.
114
This page intentionally left blank
This page intentionally left blank
VOTING POLICIES AND PROCEDURES
A description of the Trust's 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) 983-0903. 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) 983-0903; or (ii) accessing the Trust's Form N-PX on the Commission's website at www.sec.gov.
QUARTERLY PORTFOLIOS
The Trust files its complete schedule of portfolio holdings for the Funds 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
© 2012 Invesco PowerShares Capital Management LLC P-PS-AR-5
2012 Annual Report to Shareholders
April 30, 2012
PowerShares Dynamic MagniQuant Portfolio (PIQ)
PowerShares Dynamic Market Portfolio (PWC)
PowerShares Dynamic OTC Portfolio (PWO)
PowerShares FTSE RAFI US 1000 Portfolio (PRF)
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)
Table of Contents
The Market Environment | 2 | ||||||
Manager's Analysis | 4 | ||||||
Frequency Distribution of Discounts & Premiums | 14 | ||||||
Fees and Expenses | 16 | ||||||
Broad Market Portfolios | |||||||
Schedules of Investments | |||||||
PowerShares Dynamic MagniQuant Portfolio (PIQ) | 17 | ||||||
PowerShares Dynamic Market Portfolio (PWC) | 20 | ||||||
PowerShares Dynamic OTC Portfolio (PWO) | 22 | ||||||
PowerShares FTSE RAFI US 1000 Portfolio (PRF) | 24 | ||||||
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) | 35 | ||||||
Statements of Assets and Liabilities | 51 | ||||||
Statements of Operations | 52 | ||||||
Statements of Changes in Net Assets | 54 | ||||||
Financial Highlights | 56 | ||||||
Notes to Financial Statements | 59 | ||||||
Report of Independent Registered Public Accounting Firm | 70 | ||||||
Tax Information | 71 | ||||||
Trustees and Officers | 72 | ||||||
Board Considerations Regarding Approval of Continuation of Investment Advisory Agreement | 79 | ||||||
The Market Environment
Domestic Equity:
Equity markets were volatile during the fiscal year ended April 30, 2012, but the broad market, as measured by the S&P 500® Index, still managed to post a small gain. While corporate earnings remained strong, investor enthusiasm was tempered by continuing high unemployment, sluggish consumer spending and soft housing data for most of the year. Although markets stabilized and remained generally positive in the spring and early summer, major equity indices sold off precipitously in August as the U.S. government struggled to raise the nation's debt ceiling. This led credit rating agency Standard & Poor's to announce its first-ever ratings downgrade to long-term U.S. government debt. Uncertainty created by the downgrade, combined with continuing concern about the debt crisis in the eurozone, reignited fears of a recession and pressured markets downward into the fall. As signs of muted but sustained economic growth mounted, equity markets moved off their October lows and posted strong gains through the close of the reporting period with the S&P 500® Index returning 12.8% from the end of October 2011 to the end of April 2012.
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 generally correspond (before fees and expenses) to the price and yield of the Dynamic Top 200 IntellidexSM Index (the "Index"). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index. The Index seeks to objectively identify, based on the Index provider's methodology, 200 stocks from among the 2,000 largest U.S. stocks that have the greatest potential for capital appreciation by analyzing unique financial characteristics from five broad financial perspectives: price momentum, earnings momentum, quality, management action, and value.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned (1.63)%. On a Net Asset Value ("NAV") basis, the Fund returned (1.55)%. During the same reporting period, the Index returned (0.85)%, while the S&P 500® Equal Weight Index returned 0.89% and the Russell 3000® Index returned 3.40%. The Fund benefited most from exposure to the consumer discretionary and consumer staples sectors. The industrials and materials sectors had the most negative effect on the Fund.
At the single stock level, the Fund benefited most from exposure to Sturm Ruger & Co., Inc. (portfolio average weight of 0.50%), Seagate Technology PLC (portfolio average weight of 0.23%), and Novellus Systems, Inc. (portfolio average weight of 0.41%). The leading detractors to the Fund were Career Education Corp. (portfolio average of 0.42%), Lincoln Educational Services Corp. (no longer held at April 30, 2012) and TeleNav, Inc. (no longer held at April 30, 2012).
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Consumer Discretionary | 29.7 | ||||||
Information Technology | 19.0 | ||||||
Financials | 11.1 | ||||||
Health Care | 11.1 | ||||||
Industrials | 10.4 | ||||||
Consumer Staples | 6.1 | ||||||
Energy | 5.2 | ||||||
Materials | 3.2 | ||||||
Telecommunication Services | 2.1 | ||||||
Utilities | 2.1 | ||||||
Money Market Fund | 0.0 | ||||||
Liabilities in excess of other assets | (0.0 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Small-Cap Value | 27.5 | ||||||
Small-Cap Growth | 20.8 | ||||||
Large-Cap Value | 15.2 | ||||||
Mid-Cap Value | 14.8 | ||||||
Large-Cap Growth | 10.9 | ||||||
Mid-Cap Growth | 10.8 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
AOL, Inc. | 0.7 | ||||||
LeapFrog Enterprises, Inc. | 0.7 | ||||||
Sturm Ruger & Co., Inc. | 0.7 | ||||||
Expedia, Inc. | 0.7 | ||||||
Aeropostale, Inc. | 0.6 | ||||||
Gap, Inc. (The) | 0.6 | ||||||
O'Reilly Automotive, Inc. | 0.6 | ||||||
Domino's Pizza, Inc. | 0.6 | ||||||
Terra Nitrogen Co. LP | 0.6 | ||||||
Arctic Cat, Inc. | 0.6 | ||||||
Total | 6.4 |
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, 2012 | ||||||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Dynamic Top 200 IntellidexSM Index | (0.85 | )% | 17.86 | % | 0.24 | % | 2.13 | % | 12.39 | % | |||||||||||||
S&P 500® Equal Weight Index | 0.89 | % | 22.92 | % | 2.58 | % | 4.88 | % | 30.51 | % | |||||||||||||
Russell 3000® Index | 3.40 | % | 19.92 | % | 1.25 | % | 3.32 | % | 20.03 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | (1.55 | )% | 16.93 | % | (0.51 | )% | 1.38 | % | 7.88 | % | |||||||||||||
Share Price Return | (1.63 | )% | 16.94 | % | (0.52 | )% | 1.39 | % | 7.97 | % |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 1.08%. The Financial Highlights section of this Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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 2,936 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from 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 generally correspond (before fees and expenses) to the price and yield of the Dynamic Market IntellidexSM Index (the "Index"). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index. The Index selection methodology identifies and selects companies from the U.S. marketplace with superior risk-return profiles.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned (2.14)%. On a Net Asset Value ("NAV") basis, the Fund returned (2.12)%. During the same reporting period, the Index returned (1.48)%, while the S&P 500® Index returned 4.73% and the Russell 3000® Index returned 3.40%. The Fund benefited most from positive performance of securities of companies in the consumer staples, energy, and health care sectors. The Fund was hurt most by exposure to the industrials, information technology, and materials sectors.
At the single stock level, the Fund benefited most from exposure to Alliance Data Systems Corp. (portfolio average weight of 1.30%), MasterCard, Inc. (portfolio average weight of 1.79%), Visa, Inc. (portfolio average weight of 1.15%), and Marathon Oil Corp. (no longer held at April 30, 2012). The leading detractors to the Fund were Wynn Resorts Ltd., Atmel Corp. and Southwest Airlines Co. (these stocks were no longer held at April 30, 2012).
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Information Technology | 20.1 | ||||||
Consumer Discretionary | 13.0 | ||||||
Financials | 12.5 | ||||||
Energy | 12.1 | ||||||
Industrials | 11.6 | ||||||
Health Care | 10.7 | ||||||
Consumer Staples | 10.0 | ||||||
Materials | 4.3 | ||||||
Utilities | 3.3 | ||||||
Telecommunication Services | 2.4 | ||||||
Liabilities in excess of other assets | (0.0 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Large-Cap Growth | 28.6 | ||||||
Large-Cap Value | 23.4 | ||||||
Mid-Cap Growth | 16.3 | ||||||
Mid-Cap Value | 13.2 | ||||||
Small-Cap Value | 11.0 | ||||||
Small-Cap Growth | 7.5 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
Exxon Mobil Corp. | 4.3 | ||||||
Marathon Petroleum Corp. | 4.3 | ||||||
Altria Group, Inc. | 3.6 | ||||||
CVS Caremark Corp. | 3.4 | ||||||
Apple, Inc. | 3.0 | ||||||
CF Industries Holdings, Inc. | 3.0 | ||||||
Delta Air Lines, Inc. | 3.0 | ||||||
MasterCard, Inc., Class A | 3.0 | ||||||
Alliance Data Systems Corp. | 2.9 | ||||||
Visa, Inc., Class A | 2.8 | ||||||
Total | 33.3 |
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, 2012 | ||||||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Dynamic Market IntellidexSM Index | (1.48 | )% | 16.30 | % | (0.89 | )% | 7.91 | % | 98.46 | % | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 6.92 | % | 82.63 | % | |||||||||||||
Russell 3000® Index | 3.40 | % | 19.92 | % | 1.25 | % | 7.55 | % | 92.48 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | (2.12 | )% | 15.50 | % | (1.48 | )% | 7.27 | % | 88.06 | % | |||||||||||||
Share Price Return | (2.14 | )% | 15.49 | % | (1.48 | )% | 7.26 | % | 87.92 | % |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.64%. The Financial Highlights section of this Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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 2,936 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from 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 generally correspond (before fees and expenses) to the price and yield of the Dynamic OTC IntellidexSM Index (the "Index"). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index. The Index selection methodology identifies and selects companies from the U.S. NASDAQ marketplace with superior risk-return profiles.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned (4.48)%. On a Net Asset Value ("NAV") basis, the Fund returned (4.46)%. During the same reporting period, the Index returned (3.93)%, while the NASDAQ Composite Index returned 6.01% and the NASDAQ-100® Index returned 14.47%. The Fund benefited from positive performance of securities of companies in the consumer staples and financials sectors. The Fund was hurt most by exposure to the information technology and industrials sectors.
At the single stock level, the Fund benefited most from exposure to Monster Beverage Corp. (portfolio average weight of 1.44%), Seagate Technology PLC (portfolio average weight of 1.44%) and Apple, Inc. (portfolio average weight of 2.49%). The leading detractors to the Fund were Atmel Corp., Micron Technology, Inc. and BMC Software, Inc. (these stocks were no longer held at April 30, 2012).
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Information Technology | 55.1 | ||||||
Consumer Discretionary | 17.3 | ||||||
Health Care | 12.2 | ||||||
Financials | 6.1 | ||||||
Industrials | 4.1 | ||||||
Consumer Staples | 2.6 | ||||||
Energy | 1.1 | ||||||
Telecommunication Services | 0.9 | ||||||
Materials | 0.6 | ||||||
Money Market Fund | 0.3 | ||||||
Liabilities in excess of other assets | (0.3 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Large-Cap Growth | 29.0 | ||||||
Mid-Cap Growth | 28.5 | ||||||
Small-Cap Growth | 20.0 | ||||||
Small-Cap Value | 10.4 | ||||||
Large-Cap Value | 9.8 | ||||||
Mid-Cap Value | 2.3 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
Seagate Technology PLC | 3.5 | ||||||
Apple, Inc. | 3.5 | ||||||
KLA-Tencor Corp. | 3.5 | ||||||
Dollar Tree, Inc. | 3.4 | ||||||
Intel Corp. | 3.4 | ||||||
Activision Blizzard, Inc. | 3.4 | ||||||
F5 Networks, Inc. | 3.3 | ||||||
DISH Network Corp., Class A | 3.3 | ||||||
Microsoft Corp. | 3.2 | ||||||
Cisco Systems, Inc. | 3.2 | ||||||
Total | 33.7 |
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, 2012 | ||||||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Dynamic OTC IntellidexSM Index | (3.93 | )% | 16.99 | % | (0.67 | )% | 7.46 | % | 91.04 | % | |||||||||||||
NASDAQ Composite Index | 6.01 | % | 21.05 | % | 3.82 | % | 8.48 | % | 108.04 | % | |||||||||||||
NASDAQ-100® Index | 14.47 | % | 26.03 | % | 8.61 | % | 11.15 | % | 158.86 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | (4.46 | )% | 16.23 | % | (1.27 | )% | 6.81 | % | 80.89 | % | |||||||||||||
Share Price Return | (4.48 | )% | 16.22 | % | (1.29 | )% | 6.79 | % | 80.60 | % |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.91%.The Financial Highlights section of this Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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 2,529 and 100 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from 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 generally correspond (before fees and expenses) to the price and yield of the FTSE RAFI US 1000 Index (the "Index"). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index. The Index is designed to track the performance of the largest U.S. equities, selected by the Index provider based on the following four fundamental measures: book value, income, sales and dividends.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned 0.41%. On a Net Asset Value ("NAV") basis, the Fund returned 0.41%. During the same reporting period, the Index returned 0.79%, while the S&P 500® Index returned 4.73% and the Russell 1000® Index returned 4.11%. The Fund benefited most from positive performance of securities of companies in the consumer staples, consumer discretionary, and information technology sectors. The Fund was hurt most by exposure to the financials and energy sectors.
At the single stock level, the Fund benefited most from exposure to Apple, Inc. (portfolio average weight of 0.69%) and Microsoft Corp. (portfolio average weight of 1.15%). The leading detractors to the Fund were Bank of America Corp. (portfolio average weight of 1.55%) and Citigroup, Inc. (portfolio average weight of 1.38%).
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Financials | 21.9 | ||||||
Energy | 11.5 | ||||||
Industrials | 11.3 | ||||||
Information Technology | 10.7 | ||||||
Consumer Discretionary | 10.6 | ||||||
Consumer Staples | 10.2 | ||||||
Health Care | 10.2 | ||||||
Utilities | 5.4 | ||||||
Telecommunication Services | 4.4 | ||||||
Materials | 3.8 | ||||||
Money Market Fund | 1.3 | ||||||
Liabilities in excess of other assets | (1.3 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Large-Cap Value | 43.1 | ||||||
Large-Cap Growth | 30.4 | ||||||
Mid-Cap Value | 11.3 | ||||||
Mid-Cap Growth | 9.6 | ||||||
Small-Cap Value | 3.4 | ||||||
Small-Cap Growth | 2.2 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
Exxon Mobil Corp. | 3.1 | ||||||
Bank of America Corp. | 2.4 | ||||||
AT&T, Inc. | 2.2 | ||||||
General Electric Co. | 2.2 | ||||||
JPMorgan Chase & Co. | 1.9 | ||||||
Chevron Corp. | 1.8 | ||||||
Citigroup, Inc. | 1.7 | ||||||
Pfizer, Inc. | 1.6 | ||||||
Verizon Communications, Inc. | 1.5 | ||||||
Wal-Mart Stores, Inc. | 1.5 | ||||||
Total | 19.9 |
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, 2012 | ||||||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
FTSE RAFI US 1000 Index | 0.79 | % | 22.34 | % | 1.83 | % | 5.16 | % | 37.76 | % | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 3.96 | % | 27.92 | % | |||||||||||||
Russell 1000® Index | 4.11 | % | 19.88 | % | 1.23 | % | 4.16 | % | 29.46 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | 0.41 | % | 21.90 | % | 1.44 | % | 4.68 | % | 33.74 | % | |||||||||||||
Share Price Return | 0.41 | % | 21.89 | % | 1.42 | % | 4.72 | % | 34.06 | % |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.44%. The Financial Highlights section of this Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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 979 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from 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 generally correspond (before fees and expenses) to the price and yield of the FTSE RAFI US 1500 Small-Mid Index (the "Index"). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index. The Index is designed to track the performance of stocks of small and medium-sized U.S. companies selected by the Index provider based on the following four fundamental measures of firm size: book value, income cash flow and dividends.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned (4.56)%. On a Net Asset Value ("NAV") basis, the Fund returned (4.60)%. During the same reporting period, the Index returned (4.44)%, while the S&P Small Cap 600® Index returned 1.07% and the Russell 2000® Index returned (4.25)%. The Fund benefited from positive performance of securities of companies in the financials, consumer staples and utilities sectors. The Fund was hurt most by exposure to the energy, information technology, and materials sectors.
At the single stock level, the Fund benefited most from exposure to Genesco, Inc. (portfolio average weight of 0.23%) and Wellcare Health Plans, Inc. (no longer held at April 30, 2012). The leading detractors to the Fund were Patriot Coal Corp. (portfolio average weight of 0.10%), Ferro Corp. (portfolio average weight of 0.11%), and Central European Media Enterprises Ltd. (portfolio average weight of 0.11%).
Sector Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Financials | 21.6 | ||||||
Consumer Discretionary | 17.7 | ||||||
Industrials | 17.3 | ||||||
Information Technology | 16.9 | ||||||
Health Care | 8.4 | ||||||
Materials | 5.9 | ||||||
Energy | 5.7 | ||||||
Consumer Staples | 3.5 | ||||||
Utilities | 1.6 | ||||||
Telecommunication Services | 1.4 | ||||||
Money Market Fund | 6.5 | ||||||
Liabilities in excess of other assets | (6.5 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Small-Cap Growth | 44.3 | ||||||
Small-Cap Value | 42.2 | ||||||
Mid-Cap Growth | 9.4 | ||||||
Mid-Cap Value | 3.2 | ||||||
Large-Cap Growth | 0.7 | ||||||
Large-Cap Value | 0.2 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
Liz Claiborne, Inc. | 0.3 | ||||||
US Airways Group, Inc. | 0.2 | ||||||
Howard Hughes Corp. (The) | 0.2 | ||||||
Ryland Group, Inc. (The) | 0.2 | ||||||
Skechers U.S.A., Inc., Class A | 0.2 | ||||||
Douglas Emmett, Inc. REIT | 0.2 | ||||||
Cooper Cos., Inc. (The) | 0.2 | ||||||
Geo Group, Inc. (The) | 0.2 | ||||||
LaSalle Hotel Properties REIT | 0.2 | ||||||
Sunstone Hotel Investors, Inc. REIT | 0.2 | ||||||
Total | 2.1 |
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, 2012 | ||||||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
FTSE RAFI US 1500 Small-Mid Index | (4.44 | )% | 25.23 | % | 4.25 | % | 6.27 | % | 40.64 | % | |||||||||||||
S&P Small Cap 600® Index | 1.07 | % | 21.95 | % | 2.90 | % | 5.00 | % | 31.29 | % | |||||||||||||
Russell 2000® Index | (4.25 | )% | 20.34 | % | 1.45 | % | 3.54 | % | 21.46 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | (4.60 | )% | 25.10 | % | 4.09 | % | 5.99 | % | 38.58 | % | |||||||||||||
Share Price Return | (4.56 | )% | 25.18 | % | 4.11 | % | 5.99 | % | 38.61 | % |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.46%. The Financial Highlights section of this Shareholder Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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 1,957 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from the closest month-end to the Fund's inception date.
†† Average Annualized.
13
Frequency Distribution of Discounts & Premiums
Since Inception through April 30, 2012
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 | 1,398 | 467 | 22 | 1 | 1 | — | — | ||||||||||||||||||||||||||||||
PWC | PowerShares Dynamic Market Portfolio | 05/01/03 | 2,154 | 908 | 72 | 12 | 2 | — | — | ||||||||||||||||||||||||||||||
PWO | PowerShares Dynamic OTC Portfolio | 05/01/03 | 2,154 | 905 | 39 | 16 | 1 | 1 | — | ||||||||||||||||||||||||||||||
PRF | PowerShares FTSE RAFI US 1000 Portfolio | 12/19/05 | 1,594 | 846 | 17 | 5 | — | — | 2 | ||||||||||||||||||||||||||||||
PRFZ | PowerShares FTSE RAFI US 1500 Small-Mid Portfolio | 09/20/06 | 1,414 | 643 | 26 | 4 | — | 2 | 2 |
14
Closing Price Below NAV (bps) | |||||||||||||||||||||||||||
Ticker | 0-24 | -25-49 | -50-99 | -100-149 | -150-199 | -200+ | |||||||||||||||||||||
PIQ | 889 | 14 | 3 | — | — | 1 | |||||||||||||||||||||
PWC | 1,142 | 13 | 4 | — | — | 1 | |||||||||||||||||||||
PWO | 1,168 | 19 | 4 | — | — | 1 | |||||||||||||||||||||
PRF | 688 | 25 | 9 | 2 | — | — | |||||||||||||||||||||
PRFZ | 695 | 37 | 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, 2012.
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, 2011 | Ending Account Value April 30, 2012 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period(1) | ||||||||||||||||
PowerShares Dynamic MagniQuant Portfolio (PIQ) Actual | $ | 1,000.00 | $ | 1,114.45 | 0.65 | % | $ | 3.42 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.63 | 0.65 | % | $ | 3.27 | |||||||||||
PowerShares Dynamic Market Portfolio (PWC) Actual | $ | 1,000.00 | $ | 1,133.71 | 0.60 | % | $ | 3.18 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.88 | 0.60 | % | $ | 3.02 | |||||||||||
PowerShares Dynamic OTC Portfolio (PWO) Actual | $ | 1,000.00 | $ | 1,107.64 | 0.60 | % | $ | 3.14 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.88 | 0.60 | % | $ | 3.02 | |||||||||||
PowerShares FTSE RAFI US 1000 Portfolio (PRF) Actual | $ | 1,000.00 | $ | 1,110.74 | 0.39 | % | $ | 2.05 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.92 | 0.39 | % | $ | 1.96 | |||||||||||
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) Actual | $ | 1,000.00 | $ | 1,111.26 | 0.39 | % | $ | 2.05 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,022.92 | 0.39 | % | $ | 1.96 |
(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, 2012. Expenses are calculated by multiplying the Fund's annualized expense ratio by the average account value for the period; then multiplying the result by 182/366. Expense ratios for the most recent half-year may differ from expense ratios based on the annualized data in the Financial Highlights.
16
Schedule of Investments
PowerShares Dynamic MagniQuant Portfolio (PIQ)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.0% | |||||||||||
Consumer Discretionary—29.7% | |||||||||||
1,095 | Advance Auto Parts, Inc. | $ | 100,521 | ||||||||
5,308 | Aeropostale, Inc.(a) | 117,731 | |||||||||
5,550 | AFC Enterprises, Inc.(a) | 94,794 | |||||||||
1,775 | Apollo Group, Inc., Class A(a) | 62,516 | |||||||||
2,546 | Arctic Cat, Inc.(a) | 112,635 | |||||||||
257 | AutoZone, Inc.(a) | 101,813 | |||||||||
1,534 | Bed Bath & Beyond, Inc.(a) | 107,978 | |||||||||
3,704 | Best Buy Co., Inc. | 81,747 | |||||||||
2,123 | Big Lots, Inc.(a) | 77,787 | |||||||||
2,484 | Bob Evans Farms, Inc. | 94,988 | |||||||||
3,476 | Bridgepoint Education, Inc.(a) | 74,943 | |||||||||
3,483 | Brinker International, Inc. | 109,610 | |||||||||
1,081 | Buffalo Wild Wings, Inc.(a) | 90,642 | |||||||||
2,233 | Capella Education Co.(a) | 73,041 | |||||||||
7,760 | Career Education Corp.(a) | 55,329 | |||||||||
3,344 | Cato Corp. (The), Class A | 93,064 | |||||||||
3,112 | CBS Corp., Class B | 103,785 | |||||||||
239 | Chipotle Mexican Grill, Inc.(a) | 98,982 | |||||||||
1,230 | Coach, Inc. | 89,987 | |||||||||
1,539 | Coinstar, Inc.(a) | 96,634 | |||||||||
2,182 | Core-Mark Holding Co., Inc. | 84,225 | |||||||||
22,253 | Denny's Corp.(a) | 92,127 | |||||||||
1,573 | Dillard's, Inc., Class A | 101,553 | |||||||||
2,222 | Dollar General Corp.(a) | 105,456 | |||||||||
1,054 | Dollar Tree, Inc.(a) | 107,150 | |||||||||
3,013 | Domino's Pizza, Inc. | 113,922 | |||||||||
2,808 | Expedia, Inc. | 119,705 | |||||||||
3,246 | Foot Locker, Inc. | 99,295 | |||||||||
6,594 | Fred's, Inc., Class A | 94,426 | |||||||||
4,073 | GameStop Corp., Class A | 92,702 | |||||||||
4,102 | Gap, Inc. (The) | 116,907 | |||||||||
1,927 | Garmin Ltd. (Switzerland) | 90,820 | |||||||||
1,399 | Genesco, Inc.(a) | 104,925 | |||||||||
1,807 | Group 1 Automotive, Inc. | 104,589 | |||||||||
7,753 | hhgregg, Inc.(a) | 81,096 | |||||||||
1,247 | ITT Educational Services, Inc.(a) | 82,327 | |||||||||
6,402 | La-Z-Boy, Inc.(a) | 96,478 | |||||||||
12,966 | LeapFrog Enterprises, Inc.(a) | 121,102 | |||||||||
2,498 | Macy's, Inc. | 102,468 | |||||||||
923 | McDonald's Corp. | 89,946 | |||||||||
2,011 | McGraw-Hill Cos., Inc. (The) | 98,881 | |||||||||
26,756 | Orbitz Worldwide, Inc.(a) | 97,659 | |||||||||
1,081 | O'Reilly Automotive, Inc.(a) | 114,002 | |||||||||
2,511 | Papa John's International, Inc.(a) | 101,143 | |||||||||
1,690 | PetSmart, Inc. | 98,459 | |||||||||
5,631 | Pier 1 Imports, Inc. | 96,741 | |||||||||
12,893 | RadioShack Corp. | 66,786 | |||||||||
1,754 | Ross Stores, Inc. | 108,029 | |||||||||
3,970 | Sally Beauty Holdings, Inc.(a) | 105,602 | |||||||||
2,979 | Scholastic Corp. | 91,008 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
3,636 | Standard Motor Products, Inc. | $ | 54,795 | ||||||||
2,121 | Sturm Ruger & Co., Inc. | 121,045 | |||||||||
1,195 | Tempur-Pedic International, Inc.(a) | 70,314 | |||||||||
2,876 | Thor Industries, Inc. | 97,295 | |||||||||
2,574 | TJX Cos., Inc. (The) | 107,362 | |||||||||
1,098 | Tractor Supply Co. | 108,054 | |||||||||
2,103 | Wyndham Worldwide Corp. | 105,865 | |||||||||
5,482,786 | |||||||||||
Consumer Staples—6.1% | |||||||||||
2,367 | Cal-Maine Foods, Inc. | 85,283 | |||||||||
1,781 | Casey's General Stores, Inc. | 100,359 | |||||||||
1,393 | Herbalife Ltd. (Cayman Islands) | 97,956 | |||||||||
5,367 | Inter Parfums, Inc. | 84,530 | |||||||||
3,933 | Kroger Co. (The) | 91,521 | |||||||||
712 | Lorillard, Inc. | 96,326 | |||||||||
1,642 | Monster Beverage Corp.(a) | 106,664 | |||||||||
1,719 | Nu Skin Enterprises, Inc., Class A | 91,623 | |||||||||
1,115 | Philip Morris International, Inc. | 99,804 | |||||||||
13,921 | SUPERVALU, Inc. | 82,691 | |||||||||
3,429 | Susser Holdings Corp.(a) | 91,520 | |||||||||
2,161 | Weis Markets, Inc. | 96,381 | |||||||||
1,124,658 | |||||||||||
Energy—5.2% | |||||||||||
849 | Chevron Corp. | 90,469 | |||||||||
1,599 | ConocoPhillips(a)(b) | 87,865 | |||||||||
3,408 | El Paso Corp. | 101,115 | |||||||||
1,060 | Exxon Mobil Corp. | 91,520 | |||||||||
2,160 | Marathon Petroleum Corp. | 89,878 | |||||||||
1,430 | Murphy Oil Corp. | 78,607 | |||||||||
1,517 | ONEOK Partners LP | 84,588 | |||||||||
2,591 | Petroleum Development Corp.(a) | 89,105 | |||||||||
1,126 | Plains All American Pipeline LP | 92,253 | |||||||||
2,637 | Stone Energy Corp.(a) | 73,968 | |||||||||
1,507 | Williams Partners LP | 86,562 | |||||||||
965,930 | |||||||||||
Financials—11.1% | |||||||||||
3,633 | 1st Source Corp. | 82,433 | |||||||||
1,266 | ACE Ltd. | 96,178 | |||||||||
1,974 | Aflac, Inc. | 88,909 | |||||||||
3,956 | AMERISAFE, Inc.(a) | 105,704 | |||||||||
3,355 | AmTrust Financial Services, Inc. | 91,390 | |||||||||
2,155 | Assurant, Inc. | 86,933 | |||||||||
1,349 | Chubb Corp. (The) | 98,571 | |||||||||
5,260 | Fidelity National Financial, Inc., Class A | 101,360 | |||||||||
6,051 | First American Financial Corp. | 101,354 | |||||||||
2,272 | Hanover Insurance Group, Inc. (The) | 91,698 | |||||||||
2,799 | MarketAxess Holdings, Inc. | 96,034 | |||||||||
2,452 | MetLife, Inc. | 88,346 | |||||||||
5,976 | Ocwen Financial Corp.(a) | 89,102 |
See Notes to Financial Statements.
17
Schedule of Investments (Continued)
PowerShares Dynamic MagniQuant Portfolio (PIQ)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
8,668 | Old Republic International Corp. | $ | 86,247 | ||||||||
7,165 | Oritani Financial Corp. | 106,185 | |||||||||
3,324 | Principal Financial Group, Inc. | 91,975 | |||||||||
1,038 | ProAssurance Corp. | 91,437 | |||||||||
3,284 | Protective Life Corp. | 96,090 | |||||||||
1,515 | Prudential Financial, Inc. | 91,718 | |||||||||
3,470 | Simmons First National Corp., Class A | 84,460 | |||||||||
1,172 | Virtus Investment Partners, Inc.(a) | 98,917 | |||||||||
2,554 | W.R. Berkley Corp. | 96,184 | |||||||||
2,061,225 | |||||||||||
Health Care—11.1% | |||||||||||
1,974 | Aetna, Inc. | 86,935 | |||||||||
2,456 | AmerisourceBergen Corp. | 91,388 | |||||||||
2,840 | Bristol-Myers Squibb Co. | 94,771 | |||||||||
1,236 | Celgene Corp.(a) | 90,129 | |||||||||
1,893 | Centene Corp.(a) | 74,944 | |||||||||
2,053 | Cigna Corp. | 94,910 | |||||||||
3,089 | CONMED Corp. | 88,315 | |||||||||
2,867 | Forest Laboratories, Inc.(a) | 99,858 | |||||||||
2,406 | Health Net, Inc.(a) | 85,678 | |||||||||
2,348 | Hi-Tech Pharmacal Co., Inc.(a) | 76,521 | |||||||||
1,040 | Humana, Inc. | 83,907 | |||||||||
181 | Intuitive Surgical, Inc.(a) | 104,654 | |||||||||
1,897 | Magellan Health Services, Inc.(a) | 83,999 | |||||||||
1,129 | McKesson Corp. | 103,202 | |||||||||
4,200 | Medicines Co. (The)(a) | 92,778 | |||||||||
14,353 | PDL BioPharma, Inc. | 90,280 | |||||||||
3,398 | PerkinElmer, Inc. | 93,785 | |||||||||
7,496 | PharMerica Corp.(a) | 88,978 | |||||||||
2,380 | Questcor Pharmaceuticals, Inc.(a) | 106,862 | |||||||||
3,825 | Triple-S Management Corp., Class B(a) | 80,554 | |||||||||
7,852 | Universal American Corp. | 72,081 | |||||||||
1,302 | WellCare Health Plans, Inc.(a) | 79,656 | |||||||||
1,400 | WellPoint, Inc. | 94,948 | |||||||||
2,059,133 | |||||||||||
Industrials—10.4% | |||||||||||
1,176 | Advisory Board Co. (The)(a) | 107,204 | |||||||||
2,728 | Alaska Air Group, Inc.(a) | 92,206 | |||||||||
1,913 | Allegiant Travel Co.(a) | 112,408 | |||||||||
5,009 | Arkansas Best Corp. | 76,838 | |||||||||
2,852 | Brady Corp., Class A | 88,498 | |||||||||
9,714 | Delta Air Lines, Inc.(a) | 106,465 | |||||||||
1,214 | Dollar Thrifty Automotive Group, Inc.(a) | 98,164 | |||||||||
3,130 | Encore Wire Corp. | 79,784 | |||||||||
3,431 | Generac Holdings, Inc.(a) | 82,618 | |||||||||
735 | Goodrich Corp. | 92,213 | |||||||||
2,386 | Huron Consulting Group, Inc.(a) | 84,083 | |||||||||
1,317 | L-3 Communications Holdings, Inc. | 96,852 | |||||||||
1,034 | Lockheed Martin Corp. | 93,618 | |||||||||
1,978 | Mueller Industries, Inc. | 90,414 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
941 | National Presto Industries, Inc. | $ | 69,371 | ||||||||
5,594 | Primoris Services Corp. | 80,666 | |||||||||
3,348 | Textron, Inc. | 89,191 | |||||||||
1,420 | Triumph Group, Inc. | 89,204 | |||||||||
2,204 | Verisk Analytics, Inc., Class A(a) | 107,886 | |||||||||
4,617 | Viad Corp. | 83,475 | |||||||||
447 | W.W. Grainger, Inc. | 92,896 | |||||||||
1,914,054 | |||||||||||
Information Technology—19.0% | |||||||||||
760 | Alliance Data Systems Corp.(a) | 97,652 | |||||||||
5,078 | AOL, Inc.(a) | 127,153 | |||||||||
177 | Apple, Inc.(a) | 103,410 | |||||||||
2,552 | Avnet, Inc.(a) | 92,076 | |||||||||
15,825 | Brocade Communications Systems, Inc.(a) | 87,670 | |||||||||
4,597 | Cisco Systems, Inc. | 92,630 | |||||||||
2,821 | Comtech Telecommunications Corp. | 87,225 | |||||||||
5,311 | Dell, Inc.(a) | 86,941 | |||||||||
5,115 | Digital River, Inc.(a) | 96,213 | |||||||||
2,284 | Fair Isaac Corp. | 97,984 | |||||||||
12,911 | Flextronics International Ltd. (Singapore)(a) | 85,987 | |||||||||
3,209 | Heartland Payment Systems, Inc. | 97,778 | |||||||||
2,049 | IAC/InterActiveCorp. | 98,659 | |||||||||
4,229 | Insight Enterprises, Inc.(a) | 85,891 | |||||||||
468 | International Business Machines Corp. | 96,913 | |||||||||
3,559 | Jabil Circuit, Inc. | 83,459 | |||||||||
1,939 | KLA-Tencor Corp. | 101,119 | |||||||||
8,236 | Kulicke & Soffa Industries, Inc.(a) | 107,892 | |||||||||
2,485 | Lexmark International, Inc., Class A | 74,799 | |||||||||
2,099 | Liquidity Services, Inc.(a) | 111,940 | |||||||||
1,988 | Manhattan Associates, Inc.(a) | 99,698 | |||||||||
223 | MasterCard, Inc., Class A | 100,856 | |||||||||
2,046 | Novellus Systems, Inc.(a) | 95,651 | |||||||||
2,446 | Plantronics, Inc. | 93,731 | |||||||||
2,523 | Plexus Corp.(a) | 81,670 | |||||||||
33,663 | Quantum Corp.(a) | 80,118 | |||||||||
645 | Salesforce.com, Inc.(a) | 100,446 | |||||||||
3,368 | Seagate Technology PLC (Ireland) | 103,600 | |||||||||
3,543 | Stamps.com, Inc.(a) | 102,853 | |||||||||
2,254 | SYNNEX Corp.(a) | 85,855 | |||||||||
1,617 | Tech Data Corp.(a) | 86,978 | |||||||||
5,028 | TNS, Inc.(a) | 102,571 | |||||||||
4,216 | Total System Services, Inc. | 99,160 | |||||||||
4,880 | Unisys Corp.(a) | 91,061 | |||||||||
17,467 | United Online, Inc. | 82,794 | |||||||||
788 | Visa, Inc., Class A | 96,908 | |||||||||
2,327 | Western Digital Corp.(a) | 90,311 | |||||||||
3,507,652 | |||||||||||
Materials—3.2% | |||||||||||
503 | CF Industries Holdings, Inc. | 97,109 | |||||||||
979 | Domtar Corp. | 85,643 |
See Notes to Financial Statements.
18
Schedule of Investments (Continued)
PowerShares Dynamic MagniQuant Portfolio (PIQ)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
6,807 | Myers Industries, Inc. | $ | 112,520 | ||||||||
5,893 | P.H. Glatfelter Co. | 91,813 | |||||||||
1,321 | Schweitzer-Mauduit International, Inc. | 89,590 | |||||||||
421 | Terra Nitrogen Co. LP | 112,828 | |||||||||
589,503 | |||||||||||
Telecommunication Services—2.1% | |||||||||||
8,556 | General Communication, Inc., Class A(a) | 65,026 | |||||||||
7,906 | Neutral Tandem, Inc.(a) | 91,868 | |||||||||
3,391 | Telephone & Data Systems, Inc. | 82,367 | |||||||||
2,044 | United States Cellular Corp.(a) | 80,166 | |||||||||
37,328 | Vonage Holdings Corp.(a) | 76,149 | |||||||||
395,576 | |||||||||||
Utilities—2.1% | |||||||||||
4,924 | CenterPoint Energy, Inc. | 99,514 | |||||||||
1,573 | Consolidated Edison, Inc. | 93,515 | |||||||||
1,688 | DTE Energy Co. | 95,169 | |||||||||
1,949 | Pinnacle West Capital Corp. | 94,234 | |||||||||
382,432 | |||||||||||
Total Common Stocks and Other Equity Interests (Cost $17,126,593) | 18,482,949 | ||||||||||
Money Market Fund—0.0% | |||||||||||
4,677 | Goldman Sachs Financial Square Prime Obligations - Institutional Share Class (Cost $4,677) | 4,677 | |||||||||
Total Investments (Cost $17,131,270)—100.0% | 18,487,626 | ||||||||||
Liabilities in excess of other assets—(0.0)% | (3,739 | ) | |||||||||
Net Assets—100.0% | $ | 18,483,887 |
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) When-issued security.
See Notes to Financial Statements.
19
Schedule of Investments
PowerShares Dynamic Market Portfolio (PWC)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.0% | |||||||||||
Consumer Discretionary—13.0% | |||||||||||
5,654 | Advance Auto Parts, Inc. | $ | 519,037 | ||||||||
28,672 | AFC Enterprises, Inc.(a) | 489,718 | |||||||||
13,154 | Arctic Cat, Inc.(a) | 581,933 | |||||||||
24,450 | Bravo Brio Restaurant Group, Inc.(a) | 493,890 | |||||||||
19,795 | Brunswick Corp. | 520,411 | |||||||||
96,867 | DISH Network Corp., Class A | 3,096,838 | |||||||||
58,059 | Garmin Ltd. (Switzerland) | 2,736,321 | |||||||||
6,444 | ITT Educational Services, Inc.(a) | 425,433 | |||||||||
30,307 | Knology, Inc.(a) | 589,471 | |||||||||
60,608 | McGraw-Hill Cos., Inc. (The) | 2,980,095 | |||||||||
18,784 | Standard Motor Products, Inc. | 283,075 | |||||||||
6,173 | Tempur-Pedic International, Inc.(a) | 363,219 | |||||||||
77,558 | TJX Cos., Inc. (The) | 3,234,944 | |||||||||
8,929 | Visteon Corp.(a) | 447,968 | |||||||||
16,762,353 | |||||||||||
Consumer Staples—10.0% | |||||||||||
144,851 | Altria Group, Inc. | 4,665,651 | |||||||||
15,868 | Cal-Maine Foods, Inc. | 571,724 | |||||||||
23,121 | ConAgra Foods, Inc. | 596,984 | |||||||||
98,572 | CVS Caremark Corp. | 4,398,283 | |||||||||
9,339 | Herbalife Ltd. (Cayman Islands) | 656,718 | |||||||||
26,363 | Kroger Co. (The) | 613,467 | |||||||||
11,007 | Monster Beverage Corp.(a) | 715,015 | |||||||||
22,984 | Susser Holdings Corp.(a) | 613,443 | |||||||||
12,831,285 | |||||||||||
Energy—12.1% | |||||||||||
55,246 | C&J Energy Services, Inc.(a) | 1,041,387 | |||||||||
9,457 | Core Laboratories NV (Netherlands) | 1,295,420 | |||||||||
40,599 | CVR Energy, Inc.(a) | 1,232,586 | |||||||||
64,557 | Exxon Mobil Corp. | 5,573,851 | |||||||||
131,554 | Marathon Petroleum Corp. | 5,473,962 | |||||||||
43,618 | Tesoro Corp.(a) | 1,014,118 | |||||||||
15,631,324 | |||||||||||
Financials—12.5% | |||||||||||
29,721 | American Tower Corp. REIT | 1,949,103 | |||||||||
14,810 | AmTrust Financial Services, Inc. | 403,424 | |||||||||
9,513 | Assurant, Inc. | 383,754 | |||||||||
13,908 | Bank of the Ozarks, Inc. | 429,757 | |||||||||
4,141 | Credit Acceptance Corp.(a) | 389,378 | |||||||||
63,162 | Discover Financial Services | 2,141,192 | |||||||||
23,217 | Fidelity National Financial, Inc., Class A | 447,392 | |||||||||
23,661 | Horace Mann Educators Corp. | 415,251 | |||||||||
13,645 | IntercontinentalExchange, Inc.(a) | 1,815,331 | |||||||||
76,030 | Lincoln National Corp. | 1,883,263 | |||||||||
31,626 | Oritani Financial Corp. | 468,697 | |||||||||
68,468 | Principal Financial Group, Inc. | 1,894,510 | |||||||||
4,581 | ProAssurance Corp. | 403,540 | |||||||||
14,495 | Protective Life Corp. | 424,124 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
31,214 | Prudential Financial, Inc. | $ | 1,889,696 | ||||||||
15,315 | Simmons First National Corp., Class A | 372,767 | |||||||||
5,172 | Virtus Investment Partners, Inc.(a) | 436,517 | |||||||||
16,147,696 | |||||||||||
Health Care—10.7% | |||||||||||
13,927 | AmSurg Corp.(a) | 400,541 | |||||||||
31,600 | Celgene Corp.(a) | 2,304,272 | |||||||||
7,542 | Centene Corp.(a) | 298,588 | |||||||||
5,911 | Chemed Corp. | 356,670 | |||||||||
12,306 | CONMED Corp. | 351,829 | |||||||||
73,287 | Forest Laboratories, Inc.(a) | 2,552,586 | |||||||||
9,356 | Hi-Tech Pharmacal Co., Inc.(a) | 304,912 | |||||||||
26,589 | Humana, Inc. | 2,145,200 | |||||||||
4,615 | Intuitive Surgical, Inc.(a) | 2,668,393 | |||||||||
7,557 | Magellan Health Services, Inc.(a) | 334,624 | |||||||||
23,475 | Momenta Pharmaceuticals, Inc.(a) | 372,783 | |||||||||
14,961 | Pharmacyclics, Inc.(a) | 412,325 | |||||||||
9,481 | Questcor Pharmaceuticals, Inc.(a) | 425,697 | |||||||||
15,239 | Triple-S Management Corp., Class B(a) | 320,933 | |||||||||
22,584 | Warner Chilcott PLC, Class A (Ireland)(a) | 491,202 | |||||||||
13,740,555 | |||||||||||
Industrials—11.6% | |||||||||||
15,756 | Alaska Air Group, Inc.(a) | 532,553 | |||||||||
11,046 | Allegiant Travel Co.(a) | 649,063 | |||||||||
349,052 | Delta Air Lines, Inc.(a) | 3,825,610 | |||||||||
7,013 | Dollar Thrifty Automotive Group, Inc.(a) | 567,071 | |||||||||
22,876 | ITT Corp. | 513,795 | |||||||||
7,833 | Kirby Corp.(a) | 519,876 | |||||||||
47,332 | L-3 Communications Holdings, Inc. | 3,480,795 | |||||||||
5,434 | National Presto Industries, Inc. | 400,595 | |||||||||
120,306 | Textron, Inc. | 3,204,952 | |||||||||
76,482 | US Airways Group, Inc.(a) | 784,705 | |||||||||
26,664 | Viad Corp. | 482,085 | |||||||||
14,961,100 | |||||||||||
Information Technology—20.1% | |||||||||||
28,678 | Alliance Data Systems Corp.(a) | 3,684,836 | |||||||||
6,691 | Apple, Inc.(a) | 3,909,150 | |||||||||
18,772 | Avnet, Inc.(a) | 677,294 | |||||||||
200,526 | Dell, Inc.(a) | 3,282,611 | |||||||||
23,601 | Heartland Payment Systems, Inc. | 719,122 | |||||||||
15,067 | IAC/InterActiveCorp. | 725,476 | |||||||||
31,104 | Insight Enterprises, Inc.(a) | 631,722 | |||||||||
60,576 | Kulicke & Soffa Industries, Inc.(a) | 793,546 | |||||||||
18,278 | Lexmark International, Inc., Class A | 550,168 | |||||||||
14,621 | Manhattan Associates, Inc.(a) | 733,243 | |||||||||
8,409 | MasterCard, Inc., Class A | 3,803,138 | |||||||||
15,051 | Novellus Systems, Inc.(a) | 703,634 | |||||||||
16,578 | SYNNEX Corp.(a) | 631,456 | |||||||||
11,891 | Tech Data Corp.(a) | 639,617 |
See Notes to Financial Statements.
20
Schedule of Investments (Continued)
PowerShares Dynamic Market Portfolio (PWC)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
35,892 | Unisys Corp.(a) | $ | 669,745 | ||||||||
29,736 | Visa, Inc., Class A | 3,656,933 | |||||||||
25,811,691 | |||||||||||
Materials—4.3% | |||||||||||
20,193 | CF Industries Holdings, Inc. | 3,898,461 | |||||||||
5,607 | Domtar Corp. | 490,500 | |||||||||
39,913 | Metals USA Holdings Corp.(a) | 601,888 | |||||||||
7,571 | Schweitzer-Mauduit International, Inc. | 513,465 | |||||||||
5,504,314 | |||||||||||
Telecommunication Services—2.4% | |||||||||||
34,778 | AT&T, Inc. | 1,144,544 | |||||||||
11,044 | Telephone & Data Systems, Inc. | 268,259 | |||||||||
6,655 | United States Cellular Corp.(a) | 261,009 | |||||||||
27,665 | Verizon Communications, Inc. | 1,117,113 | |||||||||
121,563 | Vonage Holdings Corp.(a) | 247,988 | |||||||||
3,038,913 | |||||||||||
Utilities—3.3% | |||||||||||
139,748 | Duke Energy Corp. | 2,994,800 | |||||||||
19,136 | El Paso Electric Co. | 586,327 | |||||||||
13,933 | SCANA Corp. | 642,590 | |||||||||
4,223,717 | |||||||||||
Total Investments (Cost $120,344,204)—100.0% | 128,652,948 | ||||||||||
Liabilities in excess of other assets—(0.0)% | (9,349 | ) | |||||||||
Net Assets—100.0% | $ | 128,643,599 |
Investment Abbreviations:
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
(a) Non-income producing security.
See Notes to Financial Statements.
21
Schedule of Investments
PowerShares Dynamic OTC Portfolio (PWO)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.0% | |||||||||||
Consumer Discretionary—17.3% | |||||||||||
10,794 | AFC Enterprises, Inc.(a) | $ | 184,361 | ||||||||
3,976 | AMC Networks, Inc., Class A(a) | 168,980 | |||||||||
16,113 | Apollo Group, Inc., Class A(a) | 567,500 | |||||||||
4,952 | Arctic Cat, Inc.(a) | 219,076 | |||||||||
9,204 | Bravo Brio Restaurant Group, Inc.(a) | 185,921 | |||||||||
2,992 | Coinstar, Inc.(a) | 187,868 | |||||||||
29,174 | DISH Network Corp., Class A | 932,693 | |||||||||
9,566 | Dollar Tree, Inc.(a) | 972,480 | |||||||||
17,484 | Garmin Ltd. (Switzerland) | 824,021 | |||||||||
11,410 | Knology, Inc.(a) | 221,924 | |||||||||
4,882 | Papa John's International, Inc.(a) | 196,647 | |||||||||
12,080 | Shuffle Master, Inc.(a) | 213,454 | |||||||||
4,874,925 | |||||||||||
Consumer Staples—2.6% | |||||||||||
8,324 | Monster Beverage Corp.(a) | 540,727 | |||||||||
7,450 | Susser Holdings Corp.(a) | 198,840 | |||||||||
739,567 | |||||||||||
Energy—1.1% | |||||||||||
5,210 | Alliance Holdings GP LP | 233,147 | |||||||||
1,216 | Clayton Williams Energy, Inc.(a) | 89,425 | |||||||||
322,572 | |||||||||||
Financials—6.1% | |||||||||||
4,064 | American National Insurance Co. | 285,293 | |||||||||
1,856 | AmTrust Financial Services, Inc. | 50,557 | |||||||||
1,778 | Bank of the Ozarks, Inc. | 54,940 | |||||||||
2,407 | Columbia Banking System, Inc. | 49,319 | |||||||||
3,027 | Credit Acceptance Corp.(a) | 284,629 | |||||||||
2,692 | International Bancshares Corp. | 53,113 | |||||||||
3,964 | Oritani Financial Corp. | 58,747 | |||||||||
1,903 | Republic Bancorp, Inc., Class A | 44,778 | |||||||||
2,423 | S&T Bancorp, Inc. | 45,359 | |||||||||
1,965 | Simmons First National Corp., Class A | 47,828 | |||||||||
4,908 | SVB Financial Group(a) | 314,554 | |||||||||
1,595 | Texas Capital Bancshares, Inc.(a) | 60,147 | |||||||||
635 | Virtus Investment Partners, Inc.(a) | 53,594 | |||||||||
15,726 | Zions Bancorp. | 320,653 | |||||||||
1,723,511 | |||||||||||
Health Care—12.2% | |||||||||||
3,973 | AmSurg Corp.(a) | 114,263 | |||||||||
7,376 | Celgene Corp.(a) | 537,858 | |||||||||
7,488 | Cerner Corp.(a) | 607,202 | |||||||||
3,552 | CONMED Corp. | 101,552 | |||||||||
4,763 | HealthStream, Inc.(a) | 109,168 | |||||||||
2,670 | Hi-Tech Pharmacal Co., Inc.(a) | 87,015 | |||||||||
1,080 | Intuitive Surgical, Inc.(a) | 624,456 | |||||||||
2,156 | Magellan Health Services, Inc.(a) | 95,468 | |||||||||
6,698 | Momenta Pharmaceuticals, Inc.(a) | 106,364 | |||||||||
4,268 | Pharmacyclics, Inc.(a) | 117,626 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
2,705 | Questcor Pharmaceuticals, Inc.(a) | $ | 121,454 | ||||||||
3,317 | ViroPharma, Inc.(a) | 72,145 | |||||||||
33,832 | Warner Chilcott PLC, Class A (Ireland)(a) | 735,846 | |||||||||
3,430,417 | |||||||||||
Industrials—4.1% | |||||||||||
1,484 | Allegiant Travel Co.(a) | 87,200 | |||||||||
3,877 | AMERCO | 389,406 | |||||||||
5,328 | Avis Budget Group, Inc.(a) | 70,117 | |||||||||
8,904 | BE Aerospace, Inc.(a) | 418,755 | |||||||||
4,277 | Primoris Services Corp. | 61,674 | |||||||||
3,868 | RPX Corp.(a) | 66,839 | |||||||||
4,140 | Sykes Enterprises, Inc.(a) | 65,619 | |||||||||
1,159,610 | |||||||||||
Information Technology—55.1% | |||||||||||
73,708 | Activision Blizzard, Inc. | 948,622 | |||||||||
1,709 | Apple, Inc.(a) | 998,466 | |||||||||
6,380 | Aspen Technology, Inc.(a) | 126,196 | |||||||||
4,714 | Black Box Corp. | 106,584 | |||||||||
23,088 | Brocade Communications Systems, Inc.(a) | 127,907 | |||||||||
11,435 | Cadence Design Systems, Inc.(a) | 133,446 | |||||||||
4,795 | Cardtronics, Inc.(a) | 126,396 | |||||||||
3,507 | Cass Information Systems, Inc. | 143,612 | |||||||||
5,904 | Cirrus Logic, Inc.(a) | 161,651 | |||||||||
44,336 | Cisco Systems, Inc. | 893,370 | |||||||||
3,168 | Cognex Corp. | 127,512 | |||||||||
2,610 | CommVault Systems, Inc.(a) | 135,903 | |||||||||
4,116 | Comtech Telecommunications Corp. | 127,267 | |||||||||
51,234 | Dell, Inc.(a) | 838,701 | |||||||||
12,900 | Deltek, Inc.(a) | 134,676 | |||||||||
6,948 | Euronet Worldwide, Inc.(a) | 150,285 | |||||||||
7,005 | F5 Networks, Inc.(a) | 938,180 | |||||||||
3,045 | FEI Co.(a) | 152,768 | |||||||||
124,544 | Flextronics International Ltd. (Singapore)(a) | 829,463 | |||||||||
14,975 | GT Advanced Technologies, Inc.(a) | 97,487 | |||||||||
12,124 | Hollysys Automation Technologies Ltd. (British Virgin Islands)(a) | 120,391 | |||||||||
2,989 | IAC/InterActiveCorp. | 143,920 | |||||||||
11,268 | InfoSpace, Inc.(a) | 125,413 | |||||||||
6,172 | Insight Enterprises, Inc.(a) | 125,353 | |||||||||
33,445 | Intel Corp. | 949,838 | |||||||||
15,380 | Intuit, Inc. | 891,579 | |||||||||
18,700 | KLA-Tencor Corp. | 975,205 | |||||||||
12,016 | Kulicke & Soffa Industries, Inc.(a) | 157,410 | |||||||||
3,064 | Liquidity Services, Inc.(a) | 163,403 | |||||||||
2,900 | Manhattan Associates, Inc.(a) | 145,435 | |||||||||
28,364 | Microsoft Corp. | 908,215 | |||||||||
5,112 | Multi-Fineline Electronix, Inc.(a) | 135,417 | |||||||||
3,425 | NETGEAR, Inc.(a) | 131,862 | |||||||||
7,668 | Newport Corp.(a) | 130,893 | |||||||||
2,989 | Novellus Systems, Inc.(a) | 139,736 |
See Notes to Financial Statements.
22
Schedule of Investments (Continued)
PowerShares Dynamic OTC Portfolio (PWO)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
2,523 | OSI Systems, Inc.(a) | $ | 168,688 | ||||||||
3,680 | Plexus Corp.(a) | 119,122 | |||||||||
7,760 | QLogic Corp.(a) | 133,860 | |||||||||
11,116 | Sanmina-SCI Corp.(a) | 98,932 | |||||||||
32,484 | Seagate Technology PLC (Ireland) | 999,208 | |||||||||
5,167 | Stamps.com, Inc.(a) | 149,998 | |||||||||
3,498 | Synaptics, Inc.(a) | 107,424 | |||||||||
29,096 | Synopsys, Inc.(a) | 873,171 | |||||||||
2,359 | Tech Data Corp.(a) | 126,891 | |||||||||
11,637 | TiVo, Inc.(a) | 125,563 | |||||||||
25,486 | United Online, Inc. | 120,804 | |||||||||
15,566,223 | |||||||||||
Materials—0.6% | |||||||||||
1,760 | Innospec, Inc.(a) | 53,205 | |||||||||
8,376 | Steel Dynamics, Inc. | 106,961 | |||||||||
160,166 | |||||||||||
Telecommunication Services—0.9% | |||||||||||
3,453 | Consolidated Communications Holdings, Inc. | 66,815 | |||||||||
3,351 | SBA Communications Corp., Class A(a) | 180,083 | |||||||||
246,898 | |||||||||||
Total Common Stocks and Other Equity Interests (Cost $25,643,613) | 28,223,889 | ||||||||||
Money Market Fund—0.3% | |||||||||||
77,844 | Goldman Sachs Financial Square Prime Obligations - Institutional Share Class (Cost $77,844) | 77,844 | |||||||||
Total Investments (Cost $25,721,457)—100.3% | 28,301,733 | ||||||||||
Liabilities in excess of other assets—(0.3)% | (78,200 | ) | |||||||||
Net Assets—100.0% | $ | 28,223,533 |
Notes to Schedule of Investments:
(a) Non-income producing security.
See Notes to Financial Statements.
23
Schedule of Investments
PowerShares FTSE RAFI US 1000 Portfolio (PRF)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.0% | |||||||||||
Consumer Discretionary—10.6% | |||||||||||
9,210 | Abercrombie & Fitch Co., Class A | $ | 462,066 | ||||||||
4,460 | Advance Auto Parts, Inc. | 409,428 | |||||||||
11,782 | Aeropostale, Inc.(a) | 261,325 | |||||||||
7,142 | Amazon.com, Inc.(a) | 1,656,230 | |||||||||
27,865 | American Eagle Outfitters, Inc. | 501,849 | |||||||||
7,741 | ANN, Inc.(a) | 214,348 | |||||||||
12,513 | Apollo Group, Inc., Class A(a) | 440,708 | |||||||||
7,527 | Asbury Automotive Group, Inc.(a) | 210,154 | |||||||||
10,046 | Ascena Retail Group, Inc.(a) | 205,742 | |||||||||
9,571 | Autoliv, Inc. | 600,485 | |||||||||
21,157 | AutoNation, Inc.(a)(b) | 731,609 | |||||||||
1,315 | AutoZone, Inc.(a) | 520,950 | |||||||||
20,051 | Barnes & Noble, Inc.(a)(b) | 416,058 | |||||||||
15,046 | Bed Bath & Beyond, Inc.(a) | 1,059,088 | |||||||||
108,457 | Best Buy Co., Inc. | 2,393,646 | |||||||||
8,429 | Big Lots, Inc.(a) | 308,839 | |||||||||
5,307 | BorgWarner, Inc.(a) | 419,465 | |||||||||
23,543 | Boyd Gaming Corp.(a) | 181,046 | |||||||||
10,863 | Brinker International, Inc. | 341,859 | |||||||||
9,540 | Brunswick Corp. | 250,807 | |||||||||
5,043 | Cabela's, Inc.(a) | 190,676 | |||||||||
42,392 | Cablevision Systems Corp., Class A | 628,249 | |||||||||
25,699 | Career Education Corp.(a) | 183,234 | |||||||||
19,958 | CarMax, Inc.(a) | 616,103 | |||||||||
35,538 | Carnival Corp. | 1,154,630 | |||||||||
3,503 | Carter's, Inc.(a) | 190,213 | |||||||||
63,307 | CBS Corp., Class B | 2,111,288 | |||||||||
17,553 | Charter Communications, Inc., Class A(a) | 1,061,430 | |||||||||
441 | Chipotle Mexican Grill, Inc.(a) | 182,640 | |||||||||
12,355 | Cinemark Holdings, Inc. | 283,671 | |||||||||
5,837 | Coach, Inc. | 427,035 | |||||||||
14,959 | Collective Brands, Inc.(a) | 310,698 | |||||||||
174,742 | Comcast Corp., Class A | 5,299,925 | |||||||||
51,272 | Comcast Corp. Special, Class A | 1,529,444 | |||||||||
12,726 | Cooper Tire & Rubber Co. | 190,254 | |||||||||
5,507 | Core-Mark Holding Co., Inc. | 212,570 | |||||||||
47,985 | D.R. Horton, Inc. | 784,555 | |||||||||
30,025 | Dana Holding Corp. | 438,965 | |||||||||
13,034 | Darden Restaurants, Inc. | 652,743 | |||||||||
125,655 | Dex One Corp.(a)(b) | 121,634 | |||||||||
6,441 | Dick's Sporting Goods, Inc. | 325,915 | |||||||||
5,023 | Dillard's, Inc., Class A | 324,285 | |||||||||
46,993 | DIRECTV, Class A(a) | 2,315,345 | |||||||||
6,088 | Discovery Communications, Inc., Class A(a) | 331,309 | |||||||||
5,588 | Discovery Communications, Inc., Class C(a) | 277,668 | |||||||||
20,148 | DISH Network Corp., Class A | 644,132 | |||||||||
9,210 | Dollar General Corp.(a) | 437,107 | |||||||||
5,372 | Dollar Tree, Inc.(a) | 546,117 | |||||||||
8,345 | Domino's Pizza, Inc. | 315,524 | |||||||||
74,498 | Exide Technologies(a) | 214,554 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
11,380 | Expedia, Inc. | $ | 485,129 | ||||||||
9,629 | Family Dollar Stores, Inc. | 650,439 | |||||||||
15,627 | Foot Locker, Inc. | 478,030 | |||||||||
516,630 | Ford Motor Co. | 5,827,586 | |||||||||
1,724 | Fossil, Inc.(a) | 225,275 | |||||||||
32,559 | GameStop Corp., Class A(b) | 741,043 | |||||||||
63,243 | Gannett Co., Inc. | 874,018 | |||||||||
47,038 | Gap, Inc. (The) | 1,340,583 | |||||||||
10,191 | Garmin Ltd. (Switzerland)(b) | 480,302 | |||||||||
113,424 | General Motors Co.(a) | 2,608,752 | |||||||||
7,928 | Gentex Corp. | 174,178 | |||||||||
15,951 | Genuine Parts Co. | 1,033,306 | |||||||||
94,642 | Goodyear Tire & Rubber Co. (The)(a) | 1,039,169 | |||||||||
5,336 | Group 1 Automotive, Inc. | 308,848 | |||||||||
6,544 | Guess?, Inc. | 191,608 | |||||||||
35,444 | H&R Block, Inc. | 521,027 | |||||||||
12,759 | Hanesbrands, Inc.(a) | 360,059 | |||||||||
17,431 | Harley-Davidson, Inc. | 912,164 | |||||||||
4,956 | Harman International Industries, Inc. | 245,718 | |||||||||
13,508 | Hasbro, Inc. | 496,284 | |||||||||
147,924 | Home Depot, Inc. (The) | 7,660,984 | |||||||||
5,881 | HSN, Inc. | 227,595 | |||||||||
4,126 | Hyatt Hotels Corp., Class A(a) | 177,542 | |||||||||
33,238 | International Game Technology | 517,848 | |||||||||
51,655 | Interpublic Group of Cos., Inc. (The) | 610,046 | |||||||||
36,294 | J.C. Penney Co., Inc. | 1,308,762 | |||||||||
9,036 | Jack in the Box, Inc.(a) | 205,298 | |||||||||
10,781 | Jarden Corp. | 452,047 | |||||||||
3,816 | John Wiley & Sons, Inc., Class A | 172,445 | |||||||||
75,327 | Johnson Controls, Inc. | 2,408,204 | |||||||||
28,692 | Jones Group, Inc. (The) | 321,924 | |||||||||
23,529 | KB Home(b) | 204,232 | |||||||||
28,217 | Kohl's Corp. | 1,414,518 | |||||||||
8,890 | Lamar Advertising Co., Class A(a) | 282,880 | |||||||||
6,929 | Las Vegas Sands Corp. | 384,490 | |||||||||
17,143 | Lear Corp. | 711,434 | |||||||||
21,623 | Leggett & Platt, Inc. | 470,733 | |||||||||
17,590 | Lennar Corp., Class A(b) | 487,947 | |||||||||
15,888 | Liberty Global, Inc., Class A(a) | 791,381 | |||||||||
13,654 | Liberty Global, Inc., Class C(a) | 654,436 | |||||||||
60,647 | Liberty Interactive Corp., Class A(a) | 1,142,589 | |||||||||
2,308 | Liberty Media Corp., Class A(a) | 201,812 | |||||||||
27,451 | Limited Brands, Inc. | 1,364,315 | |||||||||
34,369 | Live Nation Entertainment, Inc.(a) | 311,383 | |||||||||
7,146 | LKQ Corp.(a) | 239,034 | |||||||||
150,512 | Lowe's Cos., Inc. | 4,736,613 | |||||||||
52,239 | Macy's, Inc. | 2,142,844 | |||||||||
23,211 | Marriott International, Inc., Class A | 907,318 | |||||||||
26,462 | Mattel, Inc. | 889,123 | |||||||||
55,215 | McDonald's Corp. | 5,380,702 | |||||||||
22,985 | McGraw-Hill Cos., Inc. (The) | 1,130,172 |
See Notes to Financial Statements.
24
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1000 Portfolio (PRF)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
4,882 | Men's Wearhouse, Inc. (The) | $ | 180,829 | ||||||||
51,837 | MGM Resorts International(a) | 695,653 | |||||||||
11,374 | Mohawk Industries, Inc.(a) | 762,285 | |||||||||
43,676 | New York Times Co. (The), Class A(a) | 275,596 | |||||||||
37,969 | Newell Rubbermaid, Inc. | 691,036 | |||||||||
128,567 | News Corp., Class A | 2,519,913 | |||||||||
45,272 | News Corp., Class B | 898,196 | |||||||||
13,022 | NIKE, Inc., Class B | 1,456,771 | |||||||||
15,605 | Nordstrom, Inc. | 871,695 | |||||||||
665 | NVR, Inc.(a) | 521,320 | |||||||||
237,773 | Office Depot, Inc.(a) | 722,830 | |||||||||
69,880 | OfficeMax, Inc.(a) | 324,942 | |||||||||
24,495 | Omnicom Group, Inc. | 1,256,838 | |||||||||
6,145 | O'Reilly Automotive, Inc.(a) | 648,052 | |||||||||
9,146 | Penn National Gaming, Inc.(a) | 411,387 | |||||||||
10,631 | Penske Automotive Group, Inc. | 281,084 | |||||||||
6,871 | PetSmart, Inc. | 400,304 | |||||||||
2,942 | Polaris Industries, Inc. | 233,712 | |||||||||
510 | Priceline.com, Inc.(a) | 388,018 | |||||||||
44,748 | PulteGroup, Inc.(a) | 440,320 | |||||||||
3,375 | PVH Corp. | 299,700 | |||||||||
44,919 | RadioShack Corp.(b) | 232,680 | |||||||||
2,139 | Ralph Lauren Corp. | 368,486 | |||||||||
32,866 | Regal Entertainment Group, Class A(b) | 447,306 | |||||||||
11,533 | Regis Corp. | 211,631 | |||||||||
9,818 | Rent-A-Center, Inc. | 335,874 | |||||||||
9,528 | Ross Stores, Inc. | 586,829 | |||||||||
25,292 | Royal Caribbean Cruises Ltd. | 692,242 | |||||||||
40,107 | Saks, Inc.(a)(b) | 439,573 | |||||||||
4,113 | Scripps Networks Interactive, Inc., Class A | 206,555 | |||||||||
23,476 | Sears Holdings Corp.(a)(b) | 1,262,539 | |||||||||
25,728 | Service Corp. International | 297,930 | |||||||||
8,405 | Signet Jewelers Ltd. (United Kingdom) | 409,912 | |||||||||
14,564 | Sonic Automotive, Inc., Class A(b) | 244,966 | |||||||||
120,721 | Staples, Inc. | 1,859,103 | |||||||||
17,842 | Starbucks Corp. | 1,023,774 | |||||||||
12,458 | Starwood Hotels & Resorts Worldwide, Inc. | 737,514 | |||||||||
87,498 | Target Corp. | 5,069,634 | |||||||||
9,474 | Tenneco, Inc.(a) | 292,083 | |||||||||
6,813 | Tiffany & Co. | 466,418 | |||||||||
29,940 | Time Warner Cable, Inc. | 2,408,673 | |||||||||
166,839 | Time Warner, Inc. | 6,249,789 | |||||||||
40,276 | TJX Cos., Inc. (The) | 1,679,912 | |||||||||
14,010 | Toll Brothers, Inc.(a) | 355,854 | |||||||||
2,375 | Tractor Supply Co. | 233,724 | |||||||||
23,670 | TRW Automotive Holdings Corp.(a) | 1,081,956 | |||||||||
3,913 | Tupperware Brands Corp. | 243,741 | |||||||||
7,601 | Urban Outfitters, Inc.(a) | 220,125 | |||||||||
7,460 | Valassis Communications, Inc.(a) | 149,200 | |||||||||
6,661 | VF Corp. | 1,012,805 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
38,244 | Viacom, Inc., Class B | $ | 1,774,139 | ||||||||
34,435 | Virgin Media, Inc.(b) | 845,724 | |||||||||
10,873 | Visteon Corp.(a) | 545,498 | |||||||||
132,542 | Walt Disney Co. (The) | 5,713,886 | |||||||||
3,635 | Warnaco Group, Inc. (The)(a) | 192,510 | |||||||||
830 | Washington Post Co. (The), Class B | 313,881 | |||||||||
55,776 | Wendy's Co. (The) | 271,629 | |||||||||
17,168 | Whirlpool Corp. | 1,099,095 | |||||||||
8,407 | Williams-Sonoma, Inc. | 325,267 | |||||||||
11,379 | Wyndham Worldwide Corp. | 572,819 | |||||||||
4,659 | Wynn Resorts Ltd. | 621,511 | |||||||||
19,500 | Yum! Brands, Inc. | 1,418,235 | |||||||||
147,587,287 | |||||||||||
Consumer Staples—10.2% | |||||||||||
294,481 | Altria Group, Inc. | 9,485,233 | |||||||||
116,529 | Archer-Daniels-Midland Co. | 3,592,589 | |||||||||
60,217 | Avon Products, Inc. | 1,300,687 | |||||||||
4,450 | Brown-Forman Corp., Class B | 384,257 | |||||||||
35,002 | Bunge Ltd. | 2,257,629 | |||||||||
23,507 | Campbell Soup Co.(b) | 795,242 | |||||||||
4,792 | Casey's General Stores, Inc. | 270,029 | |||||||||
44,882 | Central European Distribution Corp.(a) | 219,024 | |||||||||
20,037 | Chiquita Brands International, Inc.(a) | 170,314 | |||||||||
6,141 | Church & Dwight Co., Inc. | 311,963 | |||||||||
10,332 | Clorox Co. (The) | 724,273 | |||||||||
128,275 | Coca-Cola Co. (The) | 9,789,948 | |||||||||
72,780 | Coca-Cola Enterprises, Inc. | 2,192,134 | |||||||||
25,592 | Colgate-Palmolive Co. | 2,532,072 | |||||||||
52,980 | ConAgra Foods, Inc. | 1,367,944 | |||||||||
22,241 | Constellation Brands, Inc., Class A(a) | 480,406 | |||||||||
6,269 | Corn Products International, Inc. | 357,709 | |||||||||
18,052 | Cosan Ltd., Class A (Brazil) | 249,840 | |||||||||
43,182 | Costco Wholesale Corp. | 3,807,357 | |||||||||
140,833 | CVS Caremark Corp. | 6,283,968 | |||||||||
102,865 | Dean Foods Co.(a) | 1,263,182 | |||||||||
19,691 | Dole Food Co., Inc.(a)(b) | 166,980 | |||||||||
16,083 | Dr Pepper Snapple Group, Inc. | 652,648 | |||||||||
6,604 | Energizer Holdings, Inc.(a) | 471,063 | |||||||||
7,069 | Estee Lauder Cos., Inc. (The), Class A | 461,959 | |||||||||
12,718 | Flowers Foods, Inc. | 272,801 | |||||||||
8,670 | Fresh Del Monte Produce, Inc. | 200,884 | |||||||||
56,058 | General Mills, Inc. | 2,180,096 | |||||||||
29,131 | H.J. Heinz Co. | 1,552,974 | |||||||||
4,690 | Harris Teeter Supermarkets, Inc. | 178,079 | |||||||||
3,485 | Herbalife Ltd. (Cayman Islands) | 245,065 | |||||||||
9,065 | Hershey Co. (The) | 607,446 | |||||||||
15,578 | Hormel Foods Corp. | 452,697 | |||||||||
10,121 | J.M. Smucker Co. (The) | 805,935 | |||||||||
23,634 | Kellogg Co. | 1,195,171 | |||||||||
39,658 | Kimberly-Clark Corp. | 3,111,963 | |||||||||
174,542 | Kraft Foods, Inc., Class A | 6,958,990 |
See Notes to Financial Statements.
25
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1000 Portfolio (PRF)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
160,172 | Kroger Co. (The) | $ | 3,727,202 | ||||||||
11,185 | Lorillard, Inc. | 1,513,219 | |||||||||
7,708 | McCormick & Co., Inc. | 430,954 | |||||||||
5,851 | Mead Johnson Nutrition Co. | 500,612 | |||||||||
17,695 | Molson Coors Brewing Co., Class B | 735,758 | |||||||||
7,803 | Nash Finch Co. | 195,855 | |||||||||
20,889 | Pantry, Inc. (The)(a) | 266,544 | |||||||||
121,776 | PepsiCo, Inc. | 8,037,216 | |||||||||
75,150 | Philip Morris International, Inc. | 6,726,677 | |||||||||
223,479 | Procter & Gamble Co. (The) | 14,222,204 | |||||||||
5,731 | Ralcorp Holdings, Inc.(a) | 417,274 | |||||||||
42,691 | Reynolds American, Inc. | 1,743,074 | |||||||||
586,152 | Rite Aid Corp.(a) | 849,920 | |||||||||
110,050 | Safeway, Inc.(b) | 2,237,316 | |||||||||
59,322 | Sara Lee Corp. | 1,307,457 | |||||||||
37,895 | Smithfield Foods, Inc.(a) | 794,279 | |||||||||
300,676 | SUPERVALU, Inc.(b) | 1,786,015 | |||||||||
84,323 | Sysco Corp. | 2,436,935 | |||||||||
61,129 | Tyson Foods, Inc., Class A | 1,115,604 | |||||||||
4,739 | United Natural Foods, Inc.(a) | 233,585 | |||||||||
5,267 | Universal Corp. | 241,387 | |||||||||
121,528 | Walgreen Co. | 4,260,772 | |||||||||
349,772 | Wal-Mart Stores, Inc. | 20,605,069 | |||||||||
7,697 | Whole Foods Market, Inc. | 639,390 | |||||||||
142,374,869 | |||||||||||
Energy—11.5% | |||||||||||
22,258 | Alpha Natural Resources, Inc.(a) | 359,021 | |||||||||
32,761 | Anadarko Petroleum Corp. | 2,398,433 | |||||||||
26,157 | Apache Corp. | 2,509,503 | |||||||||
28,123 | Arch Coal, Inc. | 274,480 | |||||||||
3,796 | Atwood Oceanics, Inc.(a) | 168,277 | |||||||||
36,303 | Baker Hughes, Inc. | 1,601,325 | |||||||||
6,419 | Bill Barrett Corp.(a) | 153,928 | |||||||||
4,354 | Bristow Group, Inc. | 212,693 | |||||||||
6,362 | Cabot Oil & Gas Corp. | 223,561 | |||||||||
13,774 | Cameron International Corp.(a) | 705,917 | |||||||||
80,798 | Chesapeake Energy Corp. | 1,489,915 | |||||||||
237,760 | Chevron Corp. | 25,335,706 | |||||||||
4,408 | Cimarex Energy Co. | 304,637 | |||||||||
2,348 | Concho Resources, Inc.(a) | 251,659 | |||||||||
243,484 | ConocoPhillips | 17,440,759 | |||||||||
16,127 | CONSOL Energy, Inc. | 536,061 | |||||||||
7,978 | CVR Energy, Inc.(a) | 242,212 | |||||||||
25,330 | Denbury Resources, Inc.(a) | 482,283 | |||||||||
37,636 | Devon Energy Corp. | 2,628,875 | |||||||||
11,493 | Diamond Offshore Drilling, Inc. | 787,845 | |||||||||
4,638 | Dresser-Rand Group, Inc.(a) | 225,778 | |||||||||
33,606 | El Paso Corp. | 997,090 | |||||||||
6,479 | Energen Corp. | 339,370 | |||||||||
11,829 | EOG Resources, Inc. | 1,298,942 | |||||||||
8,684 | EQT Corp. | 432,637 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
23,815 | EXCO Resources, Inc.(b) | $ | 174,802 | ||||||||
26,558 | Exterran Holdings, Inc.(a) | 358,799 | |||||||||
492,031 | Exxon Mobil Corp. | 42,481,956 | |||||||||
8,500 | FMC Technologies, Inc.(a) | 399,500 | |||||||||
22,719 | Forest Oil Corp.(a) | 302,617 | |||||||||
374 | General Maritime Corp.(a) | 5 | |||||||||
61,748 | Halliburton Co. | 2,113,017 | |||||||||
16,430 | Helix Energy Solutions Group, Inc.(a) | 335,336 | |||||||||
6,269 | Helmerich & Payne, Inc. | 322,164 | |||||||||
49,543 | Hess Corp. | 2,583,172 | |||||||||
10,179 | HollyFrontier Corp. | 313,717 | |||||||||
12,650 | Key Energy Services, Inc.(a) | 160,149 | |||||||||
6,193 | Kinder Morgan, Inc.(b) | 222,329 | |||||||||
168,768 | Marathon Oil Corp. | 4,951,653 | |||||||||
83,682 | Marathon Petroleum Corp. | 3,482,008 | |||||||||
33,348 | McDermott International, Inc.(a) | 376,832 | |||||||||
27,796 | Murphy Oil Corp. | 1,527,946 | |||||||||
46,923 | Nabors Industries Ltd. (Bermuda)(a) | 781,268 | |||||||||
22,361 | National Oilwell Varco, Inc. | 1,694,069 | |||||||||
16,546 | Newfield Exploration Co.(a) | 594,001 | |||||||||
23,029 | Noble Corp. (Switzerland) | 876,484 | |||||||||
9,234 | Noble Energy, Inc. | 917,121 | |||||||||
52,063 | Occidental Petroleum Corp. | 4,749,187 | |||||||||
314 | Ocean Rig UDW, Inc. (Marshall Islands)(a) | 5,473 | |||||||||
5,136 | Oceaneering International, Inc. | 265,172 | |||||||||
3,951 | Oil States International, Inc.(a) | 314,421 | |||||||||
30,777 | Overseas Shipholding Group, Inc.(b) | 360,091 | |||||||||
20,761 | Patterson-UTI Energy, Inc. | 335,705 | |||||||||
22,284 | Peabody Energy Corp. | 693,255 | |||||||||
4,342 | Pioneer Natural Resources Co. | 502,890 | |||||||||
11,441 | Plains Exploration & Production Co.(a) | 467,365 | |||||||||
12,884 | QEP Resources, Inc. | 396,956 | |||||||||
4,275 | Range Resources Corp. | 284,971 | |||||||||
11,962 | Rowan Cos., Inc.(a) | 413,048 | |||||||||
30,190 | SandRidge Energy, Inc.(a)(b) | 241,218 | |||||||||
65,701 | Schlumberger Ltd. | 4,871,072 | |||||||||
3,219 | SEACOR Holdings, Inc.(a) | 299,142 | |||||||||
7,306 | SemGroup Corp., Class A(a) | 232,331 | |||||||||
13,336 | Ship Finance International Ltd. (Bermuda)(b) | 184,704 | |||||||||
2,464 | SM Energy Co. | 162,895 | |||||||||
16,380 | Southwestern Energy Co.(a) | 517,280 | |||||||||
56,226 | Spectra Energy Corp. | 1,728,387 | |||||||||
48,758 | Sunoco, Inc. | 2,403,282 | |||||||||
10,468 | Superior Energy Services, Inc.(a) | 281,799 | |||||||||
4,899 | Targa Resources Corp. | 235,593 | |||||||||
11,062 | Teekay Corp. (Bahamas) | 399,338 | |||||||||
41,650 | Tesoro Corp.(a) | 968,362 | |||||||||
5,420 | Tidewater, Inc. | 298,263 | |||||||||
9,669 | Ultra Petroleum Corp.(a) | 191,059 | |||||||||
6,436 | Unit Corp.(a) | 271,921 |
See Notes to Financial Statements.
26
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1000 Portfolio (PRF)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
152,978 | USEC, Inc.(a)(b) | $ | 128,746 | ||||||||
210,169 | Valero Energy Corp. | 5,191,174 | |||||||||
99,128 | Weatherford International Ltd. (Switzerland)(a) | 1,414,557 | |||||||||
14,582 | Western Refining, Inc. | 277,787 | |||||||||
6,094 | Whiting Petroleum Corp.(a) | 348,577 | |||||||||
54,961 | Williams Cos., Inc. (The) | 1,870,323 | |||||||||
13,976 | World Fuel Services Corp. | 615,783 | |||||||||
50,600 | WPX Energy, Inc.(a) | 889,042 | |||||||||
159,181,021 | |||||||||||
Financials—21.9% | |||||||||||
38,514 | ACE Ltd. | 2,925,909 | |||||||||
2,566 | Affiliated Managers Group, Inc.(a) | 291,549 | |||||||||
47,216 | Aflac, Inc. | 2,126,609 | |||||||||
4,079 | Alexandria Real Estate Equities, Inc. REIT | 305,599 | |||||||||
606 | Alleghany Corp.(a) | 207,797 | |||||||||
5,442 | Allied World Assurance Co. Holdings AG (Switzerland) | 391,606 | |||||||||
114,201 | Allstate Corp. (The) | 3,806,319 | |||||||||
14,475 | Alterra Capital Holdings Ltd. (Bermuda) | 346,387 | |||||||||
6,038 | American Capital Agency Corp. REIT | 188,627 | |||||||||
91,463 | American Express Co. | 5,506,987 | |||||||||
8,352 | American Financial Group, Inc. | 325,060 | |||||||||
66,139 | American International Group, Inc.(a) | 2,250,710 | |||||||||
8,463 | American Tower Corp. REIT | 555,004 | |||||||||
22,004 | Ameriprise Financial, Inc. | 1,192,837 | |||||||||
101,241 | Annaly Capital Management, Inc. REIT | 1,652,253 | |||||||||
24,628 | Aon PLC (United Kingdom) | 1,275,730 | |||||||||
19,288 | Apartment Investment & Management Co., Class A REIT | 523,669 | |||||||||
17,048 | Arch Capital Group Ltd.(a) | 669,645 | |||||||||
9,715 | Arthur J. Gallagher & Co. | 364,895 | |||||||||
14,478 | Aspen Insurance Holdings Ltd. (Bermuda) | 410,017 | |||||||||
31,739 | Associated Banc-Corp. | 423,081 | |||||||||
19,186 | Assurant, Inc. | 773,963 | |||||||||
15,293 | Assured Guaranty Ltd. (Bermuda) | 216,855 | |||||||||
28,310 | Astoria Financial Corp. | 274,324 | |||||||||
4,396 | AvalonBay Communities, Inc. REIT | 639,178 | |||||||||
22,404 | Axis Capital Holdings Ltd. (Bermuda) | 762,184 | |||||||||
18,344 | BancorpSouth, Inc. | 247,094 | |||||||||
4,033,999 | Bank of America Corp. | 32,715,732 | |||||||||
5,568 | Bank of Hawaii Corp. | 272,220 | |||||||||
171,037 | Bank of New York Mellon Corp. (The) | 4,045,025 | |||||||||
100,900 | BB&T Corp. | 3,232,836 | |||||||||
229,954 | Berkshire Hathaway, Inc., Class B(a) | 18,499,799 | |||||||||
13,691 | BioMed Realty Trust, Inc. REIT | 271,356 | |||||||||
6,963 | BlackRock, Inc. | 1,333,972 | |||||||||
9,552 | Boston Properties, Inc. REIT | 1,034,004 | |||||||||
27,885 | Brandywine Realty Trust REIT | 330,716 | |||||||||
4,569 | BRE Properties, Inc. REIT | 239,872 | |||||||||
10,154 | Brown & Brown, Inc. | 273,853 | |||||||||
4,800 | Camden Property Trust REIT | 324,816 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
71,881 | Capital One Financial Corp. | $ | 3,987,958 | ||||||||
71,191 | CapitalSource, Inc. | 459,182 | |||||||||
18,921 | CBL & Associates Properties, Inc. REIT | 352,498 | |||||||||
23,979 | CBRE Group, Inc., Class A(a) | 451,045 | |||||||||
106,537 | Charles Schwab Corp. (The) | 1,523,479 | |||||||||
122,918 | Chimera Investment Corp. REIT | 355,233 | |||||||||
37,366 | Chubb Corp. (The) | 2,730,334 | |||||||||
25,514 | Cincinnati Financial Corp. | 908,809 | |||||||||
19,374 | CIT Group, Inc.(a) | 733,306 | |||||||||
732,345 | Citigroup, Inc. | 24,196,679 | |||||||||
6,524 | City National Corp. | 347,468 | |||||||||
5,886 | CME Group, Inc. | 1,564,616 | |||||||||
92,580 | CNO Financial Group, Inc.(a) | 673,057 | |||||||||
11,656 | Colonial Properties Trust REIT | 260,745 | |||||||||
32,737 | Comerica, Inc. | 1,048,239 | |||||||||
8,422 | Commerce Bancshares, Inc. | 337,722 | |||||||||
22,697 | CommonWealth REIT | 425,569 | |||||||||
8,541 | Corporate Office Properties Trust REIT | 201,141 | |||||||||
5,813 | Cullen/Frost Bankers, Inc. | 342,734 | |||||||||
32,250 | DCT Industrial Trust, Inc. REIT | 191,242 | |||||||||
29,219 | DDR Corp. REIT | 432,441 | |||||||||
4,262 | Delphi Financial Group, Inc., Class A | 193,580 | |||||||||
18,681 | DiamondRock Hospitality Co. REIT | 198,579 | |||||||||
3,513 | Digital Realty Trust, Inc. REIT | 263,791 | |||||||||
41,290 | Discover Financial Services | 1,399,731 | |||||||||
35,359 | Duke Realty Corp. REIT | 524,020 | |||||||||
58,153 | E*TRADE Financial Corp.(a) | 618,166 | |||||||||
10,232 | East West Bancorp, Inc. | 232,983 | |||||||||
7,320 | Eaton Vance Corp. | 192,516 | |||||||||
9,873 | Endurance Specialty Holdings Ltd. (Bermuda) | 396,697 | |||||||||
4,274 | Entertainment Properties Trust REIT | 205,109 | |||||||||
18,920 | Equity Residential REIT | 1,162,445 | |||||||||
3,365 | Erie Indemnity Co., Class A | 258,768 | |||||||||
1,706 | Essex Property Trust, Inc. REIT | 269,497 | |||||||||
8,528 | Everest Re Group Ltd. | 845,125 | |||||||||
14,838 | F.N.B. Corp. | 168,411 | |||||||||
3,254 | Federal Realty Investment Trust REIT | 327,548 | |||||||||
18,164 | Federated Investors, Inc., Class B(b) | 401,061 | |||||||||
44,028 | Fidelity National Financial, Inc., Class A | 848,420 | |||||||||
142,946 | Fifth Third Bancorp | 2,034,122 | |||||||||
20,515 | First American Financial Corp. | 343,626 | |||||||||
48,298 | First Horizon National Corp. | 443,376 | |||||||||
31,166 | First Niagara Financial Group, Inc. | 278,624 | |||||||||
7,636 | First Republic Bank(a) | 252,217 | |||||||||
15,835 | FirstMerit Corp. | 266,028 | |||||||||
9,131 | Franklin Resources, Inc. | 1,146,032 | |||||||||
28,015 | Fulton Financial Corp. | 293,877 | |||||||||
35,690 | General Growth Properties, Inc. REIT | 635,282 | |||||||||
163,175 | Genworth Financial, Inc., Class A(a) | 980,682 | |||||||||
83,033 | Goldman Sachs Group, Inc. (The) | 9,561,250 |
See Notes to Financial Statements.
27
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1000 Portfolio (PRF)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
8,049 | Hanover Insurance Group, Inc. (The) | $ | 324,858 | ||||||||
160,232 | Hartford Financial Services Group, Inc. (The) | 3,292,768 | |||||||||
6,666 | Hatteras Financial Corp. REIT | 194,181 | |||||||||
14,137 | HCC Insurance Holdings, Inc. | 451,819 | |||||||||
22,789 | HCP, Inc. REIT | 944,604 | |||||||||
8,817 | Health Care REIT, Inc. | 499,571 | |||||||||
7,463 | Highwoods Properties, Inc. REIT | 259,190 | |||||||||
3,535 | Home Properties, Inc. REIT | 215,812 | |||||||||
21,239 | Hospitality Properties Trust REIT | 585,772 | |||||||||
60,284 | Host Hotels & Resorts, Inc. REIT | 1,003,126 | |||||||||
119,219 | Hudson City Bancorp, Inc. | 841,686 | |||||||||
135,346 | Huntington Bancshares, Inc. | 905,465 | |||||||||
16,653 | Interactive Brokers Group, Inc., Class A | 252,626 | |||||||||
2,359 | IntercontinentalExchange, Inc.(a) | 313,841 | |||||||||
20,150 | Invesco Ltd.(c) | 500,526 | |||||||||
54,523 | iStar Financial, Inc. REIT(a)(b) | 377,299 | |||||||||
12,044 | Jefferies Group, Inc. | 191,861 | |||||||||
3,213 | Jones Lang LaSalle, Inc. | 256,847 | |||||||||
629,806 | JPMorgan Chase & Co. | 27,069,062 | |||||||||
12,007 | Kemper Corp. | 360,090 | |||||||||
182,299 | KeyCorp | 1,465,684 | |||||||||
3,985 | Kilroy Realty Corp. REIT | 189,088 | |||||||||
34,575 | Kimco Realty Corp. REIT | 671,101 | |||||||||
16,322 | Knight Capital Group, Inc., Class A(a) | 214,471 | |||||||||
25,155 | Legg Mason, Inc. | 655,791 | |||||||||
11,612 | Leucadia National Corp. | 288,674 | |||||||||
25,619 | Lexington Realty Trust REIT(b) | 228,009 | |||||||||
13,624 | Liberty Property Trust REIT | 496,595 | |||||||||
62,676 | Lincoln National Corp. | 1,552,484 | |||||||||
61,674 | Loews Corp. | 2,536,652 | |||||||||
14,802 | M&T Bank Corp. | 1,276,969 | |||||||||
9,241 | Macerich Co. (The) REIT | 568,968 | |||||||||
13,350 | Mack-Cali Realty Corp. REIT | 383,412 | |||||||||
1,051 | Markel Corp.(a) | 462,734 | |||||||||
46,559 | Marsh & McLennan Cos., Inc. | 1,557,399 | |||||||||
18,136 | MBIA, Inc.(a)(b) | 182,811 | |||||||||
4,543 | Mercury General Corp. | 205,298 | |||||||||
110,335 | MetLife, Inc. | 3,975,370 | |||||||||
41,459 | MFA Financial, Inc. REIT | 305,967 | |||||||||
39,473 | MGIC Investment Corp.(a)(b) | 136,577 | |||||||||
11,322 | Montpelier Re Holdings Ltd. (Bermuda) | 232,327 | |||||||||
9,887 | Moody's Corp. | 404,873 | |||||||||
264,016 | Morgan Stanley | 4,562,196 | |||||||||
8,147 | MSCI, Inc., Class A(a) | 298,099 | |||||||||
23,331 | NASDAQ OMX Group, Inc. (The)(a) | 573,243 | |||||||||
6,681 | National Retail Properties, Inc. REIT | 182,926 | |||||||||
69,473 | New York Community Bancorp, Inc.(b) | 937,191 | |||||||||
25,015 | Northern Trust Corp. | 1,190,464 | |||||||||
33,001 | NYSE Euronext | 849,776 | |||||||||
49,053 | Old Republic International Corp. | 488,077 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
13,202 | PartnerRe Ltd. | $ | 919,123 | ||||||||
44,728 | People's United Financial, Inc. | 551,944 | |||||||||
38,472 | PHH Corp.(a)(b) | 596,316 | |||||||||
25,923 | Piedmont Office Realty Trust, Inc., Class A REIT | 459,874 | |||||||||
6,850 | Platinum Underwriters Holdings Ltd. (Bermuda) | 250,847 | |||||||||
15,141 | Plum Creek Timber Co., Inc. REIT | 636,528 | |||||||||
62,795 | PNC Financial Services Group, Inc. | 4,164,564 | |||||||||
335,861 | Popular, Inc.(a) | 597,833 | |||||||||
9,800 | Potlatch Corp. REIT | 306,740 | |||||||||
9,207 | Primerica, Inc. | 241,500 | |||||||||
47,517 | Principal Financial Group, Inc. | 1,314,795 | |||||||||
2,691 | ProAssurance Corp. | 237,050 | |||||||||
83,786 | Progressive Corp. (The) | 1,784,642 | |||||||||
29,605 | Prologis, Inc. REIT | 1,059,267 | |||||||||
17,393 | Protective Life Corp. | 508,919 | |||||||||
67,193 | Prudential Financial, Inc. | 4,067,864 | |||||||||
5,221 | Public Storage REIT | 747,960 | |||||||||
10,738 | Raymond James Financial, Inc. | 393,226 | |||||||||
8,584 | Rayonier, Inc. REIT | 389,284 | |||||||||
6,400 | Realty Income Corp. REIT | 251,776 | |||||||||
20,590 | Redwood Trust, Inc. REIT(b) | 240,491 | |||||||||
7,418 | Regency Centers Corp. REIT | 333,513 | |||||||||
383,915 | Regions Financial Corp. | 2,587,587 | |||||||||
10,899 | Reinsurance Group of America, Inc. | 633,668 | |||||||||
6,233 | RenaissanceRe Holdings Ltd. (Bermuda) | 486,548 | |||||||||
8,833 | SEI Investments Co. | 178,338 | |||||||||
10,940 | Selective Insurance Group, Inc. | 191,341 | |||||||||
11,580 | Senior Housing Properties Trust REIT | 255,686 | |||||||||
10,977 | Simon Property Group, Inc. REIT | 1,708,021 | |||||||||
5,762 | SL Green Realty Corp. REIT | 475,019 | |||||||||
59,078 | SLM Corp. | 876,127 | |||||||||
8,439 | StanCorp Financial Group, Inc. | 323,889 | |||||||||
51,215 | State Street Corp. | 2,367,157 | |||||||||
125,011 | SunTrust Banks, Inc. | 3,035,267 | |||||||||
24,768 | Susquehanna Bancshares, Inc. | 256,844 | |||||||||
2,982 | SVB Financial Group(a) | 191,116 | |||||||||
24,874 | Symetra Financial Corp. | 302,468 | |||||||||
225,762 | Synovus Financial Corp. | 474,100 | |||||||||
11,797 | T. Rowe Price Group, Inc. | 744,568 | |||||||||
2,495 | Taubman Centers, Inc. REIT | 192,564 | |||||||||
31,234 | TCF Financial Corp. | 358,254 | |||||||||
30,916 | TD Ameritrade Holding Corp. | 580,912 | |||||||||
12,857 | Torchmark Corp. | 626,264 | |||||||||
87,274 | Travelers Cos., Inc. (The) | 5,613,464 | |||||||||
8,234 | Trustmark Corp. | 209,555 | |||||||||
208,160 | U.S. Bancorp | 6,696,507 | |||||||||
14,007 | UDR, Inc. REIT | 368,804 | |||||||||
51,601 | Unum Group | 1,225,008 | |||||||||
12,882 | Validus Holdings Ltd. | 418,665 |
See Notes to Financial Statements.
28
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1000 Portfolio (PRF)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
17,187 | Valley National Bancorp | $ | 216,556 | ||||||||
9,566 | Ventas, Inc. REIT | 562,385 | |||||||||
14,461 | Vornado Realty Trust REIT | 1,241,332 | |||||||||
16,048 | W.R. Berkley Corp. | 604,368 | |||||||||
5,932 | Waddell & Reed Financial, Inc., Class A | 189,705 | |||||||||
6,384 | Washington REIT | 188,647 | |||||||||
15,166 | Washington Federal, Inc. | 266,012 | |||||||||
10,690 | Webster Financial Corp. | 242,984 | |||||||||
13,281 | Weingarten Realty Investors REIT | 352,743 | |||||||||
550,004 | Wells Fargo & Co. | 18,386,634 | |||||||||
165,428 | Weyerhaeuser Co. REIT | 3,368,114 | |||||||||
904 | White Mountains Insurance Group Ltd. | 472,792 | |||||||||
15,914 | Willis Group Holdings PLC (Ireland) | 580,224 | |||||||||
61,652 | XL Group PLC (Ireland) | 1,326,135 | |||||||||
38,467 | Zions Bancorp. | 784,342 | |||||||||
303,622,149 | |||||||||||
Health Care—10.2% | |||||||||||
116,781 | Abbott Laboratories | 7,247,429 | |||||||||
46,252 | Aetna, Inc. | 2,036,938 | |||||||||
14,365 | Agilent Technologies, Inc. | 605,916 | |||||||||
11,309 | Alere, Inc.(a) | 270,172 | |||||||||
7,490 | Allergan, Inc. | 719,040 | |||||||||
5,319 | AMERIGROUP Corp.(a) | 328,501 | |||||||||
73,302 | AmerisourceBergen Corp. | 2,727,567 | |||||||||
58,960 | Amgen, Inc. | 4,192,646 | |||||||||
35,427 | Baxter International, Inc. | 1,963,010 | |||||||||
16,441 | Becton, Dickinson and Co. | 1,289,796 | |||||||||
8,582 | Biogen Idec, Inc.(a) | 1,150,074 | |||||||||
271,295 | Boston Scientific Corp.(a) | 1,698,307 | |||||||||
168,082 | Bristol-Myers Squibb Co. | 5,608,896 | |||||||||
11,194 | Brookdale Senior Living, Inc.(a) | 212,798 | |||||||||
4,177 | C.R. Bard, Inc. | 413,356 | |||||||||
95,315 | Cardinal Health, Inc. | 4,028,965 | |||||||||
25,957 | CareFusion Corp.(a) | 672,546 | |||||||||
2,761 | Catalyst Health Solutions, Inc.(a) | 238,468 | |||||||||
9,412 | Celgene Corp.(a) | 686,323 | |||||||||
4,917 | Centene Corp.(a) | 194,664 | |||||||||
4,307 | Cerner Corp.(a) | 349,255 | |||||||||
5,016 | Charles River Laboratories International, Inc.(a) | 178,219 | |||||||||
30,717 | Cigna Corp. | 1,420,047 | |||||||||
36,509 | Community Health Systems, Inc.(a) | 888,629 | |||||||||
5,134 | Covance, Inc.(a) | 240,066 | |||||||||
31,066 | Coventry Health Care, Inc. | 931,669 | |||||||||
30,275 | Covidien PLC (Ireland) | 1,672,088 | |||||||||
7,935 | DaVita, Inc.(a) | 702,882 | |||||||||
7,389 | DENTSPLY International, Inc. | 303,392 | |||||||||
2,953 | Edwards Lifesciences Corp.(a) | 245,010 | |||||||||
134,450 | Eli Lilly & Co. | 5,564,886 | |||||||||
8,141 | Endo Pharmaceuticals Holdings, Inc.(a) | 286,075 | |||||||||
34,060 | Express Scripts Holding Co.(a) | 1,900,207 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
25,665 | Forest Laboratories, Inc.(a) | $ | 893,912 | ||||||||
30,645 | Gilead Sciences, Inc.(a) | 1,593,846 | |||||||||
43,781 | HCA Holdings, Inc. | 1,178,585 | |||||||||
45,211 | Health Management Associates, Inc., Class A(a) | 325,519 | |||||||||
22,762 | Health Net, Inc.(a) | 810,555 | |||||||||
7,829 | Henry Schein, Inc.(a) | 600,797 | |||||||||
6,373 | Hill-Rom Holdings, Inc. | 206,804 | |||||||||
16,695 | Hologic, Inc.(a) | 319,208 | |||||||||
16,122 | Hospira, Inc.(a) | 566,205 | |||||||||
24,607 | Humana, Inc. | 1,985,293 | |||||||||
538 | Intuitive Surgical, Inc.(a) | 311,072 | |||||||||
232,957 | Johnson & Johnson | 15,163,171 | |||||||||
30,897 | Kindred Healthcare, Inc.(a) | 297,847 | |||||||||
7,195 | Laboratory Corp. of America Holdings(a) | 632,369 | |||||||||
12,438 | Life Technologies Corp.(a) | 576,626 | |||||||||
10,041 | LifePoint Hospitals, Inc.(a) | 391,800 | |||||||||
7,706 | Lincare Holdings, Inc. | 188,026 | |||||||||
4,957 | Magellan Health Services, Inc.(a) | 219,496 | |||||||||
53,160 | McKesson Corp. | 4,859,356 | |||||||||
3,006 | MEDNAX, Inc.(a) | 211,141 | |||||||||
87,510 | Medtronic, Inc. | 3,342,882 | |||||||||
274,486 | Merck & Co., Inc. | 10,770,831 | |||||||||
1,223 | Mettler-Toledo International, Inc.(a) | 219,308 | |||||||||
22,958 | Mylan, Inc.(a) | 498,418 | |||||||||
15,618 | Omnicare, Inc. | 544,131 | |||||||||
12,476 | Owens & Minor, Inc. | 364,798 | |||||||||
9,032 | Patterson Cos., Inc. | 307,901 | |||||||||
9,226 | PerkinElmer, Inc. | 254,638 | |||||||||
1,889 | Perrigo Co. | 198,156 | |||||||||
940,636 | Pfizer, Inc. | 21,568,784 | |||||||||
14,395 | Quest Diagnostics, Inc. | 830,448 | |||||||||
19,954 | St. Jude Medical, Inc. | 772,619 | |||||||||
6,120 | STERIS Corp. | 192,229 | |||||||||
16,068 | Stryker Corp. | 876,831 | |||||||||
4,848 | Teleflex, Inc. | 303,824 | |||||||||
125,462 | Tenet Healthcare Corp.(a) | 651,148 | |||||||||
33,281 | Thermo Fisher Scientific, Inc. | 1,852,088 | |||||||||
103,982 | UnitedHealth Group, Inc. | 5,838,589 | |||||||||
18,799 | Universal American Corp. | 172,575 | |||||||||
8,531 | Universal Health Services, Inc., Class B | 364,359 | |||||||||
4,698 | Varian Medical Systems, Inc.(a) | 297,947 | |||||||||
9,240 | VCA Antech, Inc.(a) | 218,618 | |||||||||
32,808 | Warner Chilcott PLC, Class A (Ireland)(a) | 713,574 | |||||||||
2,877 | Waters Corp.(a) | 241,984 | |||||||||
6,840 | Watson Pharmaceuticals, Inc.(a) | 515,462 | |||||||||
5,091 | WellCare Health Plans, Inc.(a) | 311,467 | |||||||||
91,253 | WellPoint, Inc. | 6,188,778 | |||||||||
9,692 | Zimmer Holdings, Inc. | 609,918 | |||||||||
141,321,770 |
See Notes to Financial Statements.
29
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1000 Portfolio (PRF)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
Industrials—11.3% | |||||||||||
54,193 | 3M Co. | $ | 4,842,687 | ||||||||
8,820 | ABM Industries, Inc. | 205,330 | |||||||||
2,900 | Acuity Brands, Inc. | 161,153 | |||||||||
19,374 | AECOM Technology Corp.(a) | 427,584 | |||||||||
16,837 | AerCap Holdings NV (Netherlands)(a) | 194,973 | |||||||||
12,043 | AGCO Corp.(a) | 560,843 | |||||||||
10,103 | Alaska Air Group, Inc.(a) | 341,481 | |||||||||
4,728 | Alexander & Baldwin, Inc. | 241,885 | |||||||||
7,095 | Alliant Techsystems, Inc. | 378,164 | |||||||||
6,077 | AMETEK, Inc. | 305,856 | |||||||||
3,834 | Armstrong World Industries, Inc. | 168,849 | |||||||||
4,206 | Atlas Air Worldwide Holdings, Inc.(a) | 193,686 | |||||||||
20,867 | Avery Dennison Corp. | 667,327 | |||||||||
50,954 | Avis Budget Group, Inc.(a) | 670,555 | |||||||||
10,929 | Babcock & Wilcox Co. (The)(a) | 268,853 | |||||||||
5,956 | BE Aerospace, Inc.(a) | 280,111 | |||||||||
66,157 | Boeing Co. (The) | 5,080,858 | |||||||||
11,772 | Briggs & Stratton Corp. | 213,073 | |||||||||
9,005 | Brink's Co. (The) | 228,727 | |||||||||
9,459 | C.H. Robinson Worldwide, Inc. | 565,081 | |||||||||
5,339 | Carlisle Cos., Inc. | 293,965 | |||||||||
38,499 | Caterpillar, Inc. | 3,956,542 | |||||||||
12,029 | Cintas Corp. | 471,176 | |||||||||
10,523 | Con-way, Inc. | 341,997 | |||||||||
12,033 | Cooper Industries PLC (Ireland) | 752,905 | |||||||||
6,940 | Copart, Inc.(a) | 183,285 | |||||||||
11,133 | Corrections Corp. of America(a) | 321,632 | |||||||||
11,904 | Covanta Holding Corp. | 191,059 | |||||||||
5,099 | Crane Co. | 225,019 | |||||||||
87,538 | CSX Corp. | 1,952,973 | |||||||||
8,851 | Cummins, Inc. | 1,025,211 | |||||||||
4,853 | Curtiss-Wright Corp. | 171,262 | |||||||||
29,305 | Danaher Corp. | 1,588,917 | |||||||||
27,883 | Deere & Co. | 2,296,444 | |||||||||
187,132 | Delta Air Lines, Inc.(a) | 2,050,967 | |||||||||
8,284 | Deluxe Corp. | 197,242 | |||||||||
3,772 | Dollar Thrifty Automotive Group, Inc.(a) | 305,004 | |||||||||
5,394 | Donaldson Co., Inc. | 186,956 | |||||||||
14,280 | Dover Corp. | 894,785 | |||||||||
78,028 | DryShips, Inc. (Greece)(a)(b) | 246,568 | |||||||||
2,759 | Dun & Bradstreet Corp. (The) | 214,595 | |||||||||
28,936 | Eaton Corp. | 1,394,136 | |||||||||
14,796 | EMCOR Group, Inc. | 433,819 | |||||||||
64,354 | Emerson Electric Co. | 3,381,159 | |||||||||
6,154 | EnerSys(a) | 215,082 | |||||||||
7,142 | Equifax, Inc. | 327,246 | |||||||||
3,204 | Esterline Technologies Corp.(a) | 219,442 | |||||||||
64,110 | Exelis, Inc. | 739,188 | |||||||||
10,183 | Expeditors International of Washington, Inc. | 407,320 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
6,773 | Fastenal Co. | $ | 317,112 | ||||||||
34,157 | FedEx Corp. | 3,014,014 | |||||||||
3,448 | Flowserve Corp. | 396,279 | |||||||||
18,258 | Fluor Corp. | 1,054,399 | |||||||||
12,457 | Fortune Brands Home & Security, Inc.(a) | 283,272 | |||||||||
17,316 | Foster Wheeler AG (Switzerland)(a) | 398,268 | |||||||||
4,975 | FTI Consulting, Inc.(a) | 180,791 | |||||||||
2,697 | Gardner Denver, Inc. | 175,683 | |||||||||
6,118 | GATX Corp. | 262,279 | |||||||||
13,666 | General Cable Corp.(a) | 402,327 | |||||||||
42,523 | General Dynamics Corp. | 2,870,302 | |||||||||
1,545,990 | General Electric Co. | 30,270,484 | |||||||||
6,229 | Goodrich Corp. | 781,490 | |||||||||
15,625 | GrafTech International Ltd.(a) | 183,437 | |||||||||
6,407 | Granite Construction, Inc. | 178,371 | |||||||||
17,443 | Harsco Corp. | 388,979 | |||||||||
92,211 | Hertz Global Holdings, Inc.(a) | 1,420,972 | |||||||||
7,220 | HNI Corp. | 174,146 | |||||||||
59,963 | Honeywell International, Inc. | 3,637,356 | |||||||||
4,006 | Hubbell, Inc., Class B | 321,441 | |||||||||
13,504 | Huntington Ingalls Industries, Inc.(a) | 532,733 | |||||||||
5,626 | IDEX Corp. | 243,662 | |||||||||
41,088 | Illinois Tool Works, Inc. | 2,357,629 | |||||||||
32,776 | Ingersoll-Rand PLC (Ireland) | 1,393,636 | |||||||||
12,077 | Iron Mountain, Inc. | 366,778 | |||||||||
41,182 | ITT Corp. | 924,948 | |||||||||
4,745 | J.B. Hunt Transport Services, Inc. | 262,541 | |||||||||
16,731 | Jacobs Engineering Group, Inc.(a) | 733,320 | |||||||||
70,809 | JetBlue Airways Corp.(a)(b) | 336,343 | |||||||||
4,440 | Joy Global, Inc. | 314,219 | |||||||||
5,527 | Kansas City Southern | 425,690 | |||||||||
15,863 | KBR, Inc. | 537,121 | |||||||||
14,605 | Kelly Services, Inc., Class A | 204,324 | |||||||||
5,323 | Kennametal, Inc. | 224,790 | |||||||||
3,117 | Kirby Corp.(a) | 206,875 | |||||||||
19,465 | L-3 Communications Holdings, Inc. | 1,431,456 | |||||||||
6,394 | Lennox International, Inc. | 277,500 | |||||||||
5,197 | Lincoln Electric Holdings, Inc. | 254,705 | |||||||||
41,748 | Lockheed Martin Corp. | 3,779,864 | |||||||||
15,842 | Manitowoc Co., Inc. (The) | 219,412 | |||||||||
21,895 | Manpower, Inc. | 932,727 | |||||||||
77,823 | Masco Corp. | 1,025,707 | |||||||||
33,407 | Meritor, Inc.(a) | 217,480 | |||||||||
4,830 | Moog, Inc., Class A(a) | 204,164 | |||||||||
3,790 | Mueller Industries, Inc. | 173,241 | |||||||||
20,302 | Navistar International Corp.(a) | 689,253 | |||||||||
9,900 | Nielsen Holdings NV (Netherlands)(a) | 289,278 | |||||||||
30,367 | Norfolk Southern Corp. | 2,214,665 | |||||||||
52,618 | Northrop Grumman Corp. | 3,329,667 | |||||||||
19,601 | Oshkosh Corp.(a) | 447,491 | |||||||||
20,799 | Owens Corning(a) | 714,446 |
See Notes to Financial Statements.
30
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1000 Portfolio (PRF)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
34,798 | PACCAR, Inc. | $ | 1,494,922 | ||||||||
4,844 | Pall Corp. | 288,751 | |||||||||
11,540 | Parker Hannifin Corp. | 1,011,943 | |||||||||
9,779 | Pentair, Inc.(b) | 423,822 | |||||||||
47,219 | Pitney Bowes, Inc.(b) | 808,861 | |||||||||
5,393 | Precision Castparts Corp. | 951,163 | |||||||||
13,405 | Quad Graphics, Inc.(b) | 180,163 | |||||||||
21,685 | Quanta Services, Inc.(a) | 479,672 | |||||||||
76,227 | R.R. Donnelley & Sons Co.(b) | 953,600 | |||||||||
48,904 | Raytheon Co. | 2,647,663 | |||||||||
3,172 | Regal-Beloit Corp. | 214,554 | |||||||||
40,665 | Republic Airways Holdings, Inc.(a)(b) | 206,985 | |||||||||
37,586 | Republic Services, Inc. | 1,028,729 | |||||||||
11,624 | Robert Half International, Inc. | 346,395 | |||||||||
7,933 | Rockwell Automation, Inc. | 613,538 | |||||||||
9,822 | Rockwell Collins, Inc. | 548,952 | |||||||||
3,875 | Roper Industries, Inc. | 394,863 | |||||||||
11,087 | Ryder System, Inc. | 540,159 | |||||||||
10,872 | Seaspan Corp. (Hong Kong)(b) | 181,671 | |||||||||
15,785 | Shaw Group, Inc. (The)(a) | 477,812 | |||||||||
24,921 | SkyWest, Inc. | 224,040 | |||||||||
5,269 | Snap-On, Inc. | 329,523 | |||||||||
69,879 | Southwest Airlines Co. | 578,598 | |||||||||
13,304 | Spirit Aerosystems Holdings, Inc., Class A(a) | 332,600 | |||||||||
6,082 | SPX Corp. | 466,976 | |||||||||
10,989 | Stanley Black & Decker, Inc. | 803,955 | |||||||||
22,823 | Steelcase, Inc., Class A(b) | 197,191 | |||||||||
2,378 | Stericycle, Inc.(a) | 205,935 | |||||||||
3,079 | Teledyne Technologies, Inc.(a) | 198,965 | |||||||||
23,109 | Terex Corp.(a) | 523,188 | |||||||||
37,921 | Textron, Inc. | 1,010,215 | |||||||||
3,892 | Thomas & Betts Corp.(a) | 279,874 | |||||||||
8,278 | Timken Co. (The) | 467,790 | |||||||||
2,653 | TransDigm Group, Inc.(a) | 334,596 | |||||||||
9,650 | Trinity Industries, Inc. | 285,640 | |||||||||
2,845 | Triumph Group, Inc. | 178,723 | |||||||||
16,428 | Tutor Perini Corp.(a) | 249,870 | |||||||||
49,715 | Tyco International Ltd. (Switzerland) | 2,790,503 | |||||||||
28,222 | Union Pacific Corp. | 3,173,282 | |||||||||
73,640 | United Continental Holdings, Inc.(a)(b) | 1,614,189 | |||||||||
54,404 | United Parcel Service, Inc., Class B | 4,251,129 | |||||||||
9,382 | United Rentals, Inc.(a)(b) | 437,952 | |||||||||
11,716 | United Stationers, Inc. | 332,266 | |||||||||
73,941 | United Technologies Corp. | 6,036,543 | |||||||||
16,863 | URS Corp. | 696,611 | |||||||||
16,846 | USG Corp.(a)(b) | 304,070 | |||||||||
14,685 | UTi Worldwide, Inc. (British Virgin Islands) | 244,799 | |||||||||
3,207 | W.W. Grainger, Inc. | 666,479 | |||||||||
5,365 | Waste Connections, Inc. | 172,914 | |||||||||
60,961 | Waste Management, Inc. | 2,084,866 | |||||||||
8,780 | Werner Enterprises, Inc. | 207,384 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
4,795 | WESCO International, Inc.(a) | $ | 318,340 | ||||||||
17,182 | Xylem, Inc. | 479,034 | |||||||||
26,841 | YRC Worldwide, Inc.(a)(b) | 195,402 | |||||||||
157,427,699 | |||||||||||
Information Technology—10.7% | |||||||||||
30,256 | Accenture PLC, Class A (Ireland) | 1,965,127 | |||||||||
35,091 | Activision Blizzard, Inc. | 451,621 | |||||||||
24,616 | Adobe Systems, Inc.(a) | 826,113 | |||||||||
68,523 | Advanced Micro Devices, Inc.(a) | 504,329 | |||||||||
7,425 | Akamai Technologies, Inc.(a) | 242,055 | |||||||||
2,166 | Alliance Data Systems Corp.(a) | 278,309 | |||||||||
8,512 | Altera Corp. | 302,772 | |||||||||
16,236 | Amdocs Ltd. (Guernsey)(a) | 519,552 | |||||||||
39,057 | Amkor Technology, Inc.(a)(b) | 201,925 | |||||||||
6,523 | Amphenol Corp., Class A | 379,247 | |||||||||
17,589 | Analog Devices, Inc. | 685,619 | |||||||||
4,842 | Anixter International, Inc.(a) | 332,064 | |||||||||
2,808 | ANSYS, Inc.(a) | 188,333 | |||||||||
42,005 | AOL, Inc.(a) | 1,051,805 | |||||||||
13,917 | Apple, Inc.(a) | 8,130,868 | |||||||||
115,280 | Applied Materials, Inc. | 1,382,207 | |||||||||
28,160 | Arrow Electronics, Inc.(a) | 1,184,128 | �� | ||||||||
18,797 | Atmel Corp.(a) | 166,729 | |||||||||
8,423 | Autodesk, Inc.(a) | 331,614 | |||||||||
30,828 | Automatic Data Processing, Inc. | 1,714,653 | |||||||||
7,103 | Avago Technologies Ltd. (Singapore) | 244,911 | |||||||||
31,509 | Avnet, Inc.(a) | 1,136,845 | |||||||||
13,749 | Benchmark Electronics, Inc.(a) | 218,334 | |||||||||
9,829 | BMC Software, Inc.(a) | 405,545 | |||||||||
22,643 | Brightpoint, Inc.(a) | 138,575 | |||||||||
14,782 | Broadcom Corp., Class A | 541,021 | |||||||||
9,972 | Broadridge Financial Solutions, Inc. | 231,450 | |||||||||
48,731 | Brocade Communications Systems, Inc.(a) | 269,970 | |||||||||
22,572 | CA, Inc. | 596,352 | |||||||||
4,113 | CACI International, Inc., Class A(a) | 251,428 | |||||||||
5,726 | Check Point Software Technologies Ltd. (Israel)(a) | 332,852 | |||||||||
368,553 | Cisco Systems, Inc. | 7,426,343 | |||||||||
4,436 | Citrix Systems, Inc.(a) | 379,766 | |||||||||
7,483 | Cognizant Technology Solutions Corp., Class A(a) | 548,654 | |||||||||
45,142 | Computer Sciences Corp. | 1,266,685 | |||||||||
18,809 | Compuware Corp.(a) | 164,015 | |||||||||
22,465 | Convergys Corp.(a) | 300,357 | |||||||||
54,276 | CoreLogic, Inc.(a) | 906,409 | |||||||||
144,671 | Corning, Inc. | 2,076,029 | |||||||||
6,764 | Cree, Inc.(a)(b) | 209,008 | |||||||||
242,503 | Dell, Inc.(a) | 3,969,774 | |||||||||
7,151 | Diebold, Inc. | 282,107 | |||||||||
4,160 | DST Systems, Inc. | 232,877 | |||||||||
58,060 | eBay, Inc.(a) | 2,383,363 |
See Notes to Financial Statements.
31
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1000 Portfolio (PRF)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
21,081 | Electronic Arts, Inc.(a) | $ | 324,226 | ||||||||
93,416 | EMC Corp.(a) | 2,635,265 | |||||||||
1,684 | Equinix, Inc.(a) | 276,513 | |||||||||
28,337 | Fidelity National Information Services, Inc. | 954,107 | |||||||||
9,742 | First Solar, Inc.(a)(b) | 179,253 | |||||||||
10,653 | Fiserv, Inc.(a) | 748,799 | |||||||||
229,458 | Flextronics International Ltd. (Singapore)(a) | 1,528,190 | |||||||||
9,222 | FLIR Systems, Inc. | 207,126 | |||||||||
3,631 | Global Payments, Inc. | 168,587 | |||||||||
7,538 | Google, Inc., Class A(a) | 4,562,224 | |||||||||
12,222 | Harris Corp. | 556,590 | |||||||||
380,598 | Hewlett-Packard Co. | 9,423,606 | |||||||||
6,696 | IAC/InterActiveCorp. | 322,412 | |||||||||
71,063 | Ingram Micro, Inc., Class A(a) | 1,382,886 | |||||||||
13,031 | Insight Enterprises, Inc.(a) | 264,660 | |||||||||
389,111 | Intel Corp. | 11,050,752 | |||||||||
60,356 | International Business Machines Corp. | 12,498,521 | |||||||||
16,658 | Intersil Corp., Class A | 171,078 | |||||||||
9,780 | Intuit, Inc. | 566,947 | |||||||||
5,100 | Itron, Inc.(a) | 208,080 | |||||||||
25,598 | Jabil Circuit, Inc. | 600,273 | |||||||||
14,941 | Juniper Networks, Inc.(a) | 320,186 | |||||||||
8,296 | KLA-Tencor Corp. | 432,636 | |||||||||
5,171 | Lam Research Corp.(a) | 215,372 | |||||||||
11,659 | Lender Processing Services, Inc. | 309,546 | |||||||||
12,478 | Lexmark International, Inc., Class A | 375,588 | |||||||||
11,632 | Linear Technology Corp. | 380,483 | |||||||||
30,872 | LSI Corp.(a) | 248,211 | |||||||||
42,285 | Marvell Technology Group Ltd. (Bermuda)(a) | 634,698 | |||||||||
2,001 | MasterCard, Inc., Class A | 904,992 | |||||||||
20,199 | Maxim Integrated Products, Inc. | 597,486 | |||||||||
96,723 | MEMC Electronic Materials, Inc.(a) | 347,236 | |||||||||
14,941 | Microchip Technology, Inc.(b) | 528,015 | |||||||||
152,933 | Micron Technology, Inc.(a) | 1,007,828 | |||||||||
446,945 | Microsoft Corp. | 14,311,179 | |||||||||
6,789 | Molex, Inc. | 187,309 | |||||||||
7,499 | Molex, Inc., Class A | 171,727 | |||||||||
25,483 | Monster Worldwide, Inc.(a) | 219,918 | |||||||||
14,762 | Motorola Mobility Holdings, Inc.(a) | 573,061 | |||||||||
47,241 | Motorola Solutions, Inc. | 2,410,708 | |||||||||
16,385 | NCR Corp.(a) | 385,048 | |||||||||
13,304 | NetApp, Inc.(a) | 516,594 | |||||||||
4,510 | Novellus Systems, Inc.(a) | 210,843 | |||||||||
6,612 | Nuance Communications, Inc.(a) | 161,597 | |||||||||
32,850 | NVIDIA Corp.(a) | 427,050 | |||||||||
10,302 | NXP Semiconductor NV (Netherlands)(a) | 266,307 | |||||||||
31,697 | ON Semiconductor Corp.(a) | 261,817 | |||||||||
195,418 | Oracle Corp. | 5,743,335 | |||||||||
27,379 | Paychex, Inc. | 848,201 | |||||||||
54,328 | QUALCOMM, Inc. | 3,468,300 | |||||||||
68,487 | SAIC, Inc. | 832,802 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
14,597 | SanDisk Corp.(a) | $ | 540,235 | ||||||||
37,893 | Sanmina-SCI Corp.(a) | 337,248 | |||||||||
35,807 | Seagate Technology PLC (Ireland) | 1,101,423 | |||||||||
57,368 | Symantec Corp.(a) | 947,719 | |||||||||
8,815 | Synopsys, Inc.(a) | 264,538 | |||||||||
39,445 | TE Connectivity Ltd. (Switzerland) | 1,438,165 | |||||||||
23,286 | Tech Data Corp.(a) | 1,252,554 | |||||||||
51,518 | Tellabs, Inc. | 194,223 | |||||||||
4,030 | Teradata Corp.(a) | 281,213 | |||||||||
11,131 | Teradyne, Inc.(a) | 191,565 | |||||||||
73,197 | Texas Instruments, Inc. | 2,337,912 | |||||||||
20,615 | Total System Services, Inc. | 484,865 | |||||||||
4,156 | Trimble Navigation Ltd.(a) | 225,006 | |||||||||
18,644 | Unisys Corp.(a) | 347,897 | |||||||||
15,258 | Visa, Inc., Class A | 1,876,429 | |||||||||
25,798 | Vishay Intertechnology, Inc.(a) | 289,454 | |||||||||
23,972 | Western Digital Corp.(a) | 930,353 | |||||||||
32,377 | Western Union Co. (The) | 595,089 | |||||||||
214,795 | Xerox Corp. | 1,671,105 | |||||||||
13,438 | Xilinx, Inc. | 488,874 | |||||||||
102,509 | Yahoo!, Inc.(a) | 1,592,990 | |||||||||
148,668,765 | |||||||||||
Materials—3.8% | |||||||||||
28,479 | AbitibiBowater, Inc.(a)(b) | 377,347 | |||||||||
16,385 | Air Products & Chemicals, Inc. | 1,400,754 | |||||||||
3,806 | Airgas, Inc. | 348,782 | |||||||||
44,712 | AK Steel Holding Corp.(b) | 331,763 | |||||||||
4,363 | Albemarle Corp. | 284,904 | |||||||||
269,217 | Alcoa, Inc. | 2,619,481 | |||||||||
11,195 | Allegheny Technologies, Inc. | 480,713 | |||||||||
4,669 | AptarGroup, Inc. | 254,507 | |||||||||
12,135 | Ashland, Inc. | 799,332 | |||||||||
13,805 | Ball Corp. | 576,497 | |||||||||
14,513 | Bemis Co., Inc. | 470,076 | |||||||||
6,998 | Cabot Corp. | 301,824 | |||||||||
9,779 | Celanese Corp., Series A | 473,890 | |||||||||
2,675 | CF Industries Holdings, Inc. | 516,436 | |||||||||
18,005 | Chemtura Corp.(a) | 306,445 | |||||||||
8,027 | Cliffs Natural Resources, Inc. | 499,761 | |||||||||
6,607 | Coeur d'Alene Mines Corp.(a) | 142,381 | |||||||||
35,071 | Commercial Metals Co. | 518,349 | |||||||||
16,735 | Crown Holdings, Inc.(a) | 618,860 | |||||||||
4,805 | Cytec Industries, Inc. | 305,454 | |||||||||
5,644 | Domtar Corp. | 493,737 | |||||||||
157,649 | Dow Chemical Co. (The) | 5,341,148 | |||||||||
79,827 | E.I. du Pont de Nemours & Co. | 4,267,551 | |||||||||
12,191 | Eastman Chemical Co. | 657,948 | |||||||||
11,275 | Ecolab, Inc. | 718,105 | |||||||||
3,186 | FMC Corp. | 351,894 | |||||||||
78,843 | Freeport-McMoRan Copper & Gold, Inc. | 3,019,687 | |||||||||
3,164 | Greif, Inc., Class A | 169,717 |
See Notes to Financial Statements.
32
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1000 Portfolio (PRF)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
1,151 | Greif, Inc., Class B | $ | 62,672 | ||||||||
36,135 | Huntsman Corp. | 511,672 | |||||||||
5,611 | International Flavors & Fragrances, Inc. | 337,838 | |||||||||
63,160 | International Paper Co. | 2,103,860 | |||||||||
50,847 | LyondellBasell Industries NV, Class A (Netherlands) | 2,124,388 | |||||||||
3,769 | Martin Marietta Materials, Inc.(b) | 312,375 | |||||||||
24,126 | MeadWestvaco Corp.(a)(d) | 680,353 | |||||||||
104 | MeadWestvaco Corp. | 3,309 | |||||||||
25,178 | Monsanto Co. | 1,918,060 | |||||||||
17,860 | Mosaic Co. (The) | 943,365 | |||||||||
29,499 | Newmont Mining Corp. | 1,405,627 | |||||||||
48,151 | Nucor Corp. | 1,888,001 | |||||||||
10,126 | Olin Corp. | 212,241 | |||||||||
6,916 | OM Group, Inc.(a) | 166,814 | |||||||||
33,940 | Owens-Illinois, Inc.(a) | 789,105 | |||||||||
11,398 | Packaging Corp. of America | 332,708 | |||||||||
13,312 | PolyOne Corp. | 184,504 | |||||||||
15,304 | PPG Industries, Inc. | 1,610,593 | |||||||||
15,963 | Praxair, Inc. | 1,846,919 | |||||||||
9,921 | Reliance Steel & Aluminum Co. | 554,485 | |||||||||
3,415 | Rock-Tenn Co., Class A | 212,857 | |||||||||
6,792 | Rockwood Holdings, Inc.(a) | 375,869 | |||||||||
16,240 | RPM International, Inc. | 431,497 | |||||||||
6,236 | Scotts Miracle-Gro Co. (The), Class A | 326,766 | |||||||||
26,150 | Sealed Air Corp. | 501,557 | |||||||||
4,710 | Sensient Technologies Corp. | 174,977 | |||||||||
7,157 | Sherwin-Williams Co. (The) | 860,844 | |||||||||
5,219 | Sigma-Aldrich Corp. | 370,027 | |||||||||
4,327 | Silgan Holdings, Inc. | 189,826 | |||||||||
7,869 | Solutia, Inc. | 223,007 | |||||||||
13,934 | Sonoco Products Co. | 461,633 | |||||||||
25,549 | Southern Copper Corp. | 840,051 | |||||||||
34,206 | Steel Dynamics, Inc. | 436,811 | |||||||||
41,288 | United States Steel Corp.(b) | 1,169,689 | |||||||||
7,342 | Valspar Corp. (The) | 375,543 | |||||||||
14,878 | Vulcan Materials Co. | 636,927 | |||||||||
3,998 | W.R. Grace & Co.(a) | 238,321 | |||||||||
2,822 | Walter Energy, Inc. | 187,127 | |||||||||
12,377 | Worthington Industries, Inc. | 220,806 | |||||||||
52,870,367 | |||||||||||
Telecommunication Services—4.4% | |||||||||||
929,183 | AT&T, Inc. | 30,579,412 | |||||||||
35,946 | CenturyLink, Inc. | 1,386,078 | |||||||||
50,944 | Cincinnati Bell, Inc.(a) | 193,587 | |||||||||
8,287 | Crown Castle International Corp.(a) | 469,127 | |||||||||
233,046 | Frontier Communications Corp.(b) | 941,506 | |||||||||
16,001 | Level 3 Communications, Inc.(a) | 368,983 | |||||||||
36,673 | MetroPCS Communications, Inc.(a) | 267,713 | |||||||||
39,248 | NII Holdings, Inc.(a) | 549,276 | |||||||||
1,538,059 | Sprint Nextel Corp.(a) | 3,814,386 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
24,593 | Telephone & Data Systems, Inc. | $ | 597,364 | ||||||||
9,938 | tw telecom, inc.(a) | 216,450 | |||||||||
514,204 | Verizon Communications, Inc. | 20,763,557 | |||||||||
84,933 | Windstream Corp. | 954,647 | |||||||||
61,102,086 | |||||||||||
Utilities—5.4% | |||||||||||
164,303 | AES Corp. (The)(a) | 2,057,074 | |||||||||
8,732 | AGL Resources, Inc. | 344,303 | |||||||||
4,332 | ALLETE, Inc. | 178,522 | |||||||||
14,602 | Alliant Energy Corp. | 660,594 | |||||||||
51,841 | Ameren Corp. | 1,699,866 | |||||||||
76,566 | American Electric Power Co., Inc. | 2,973,823 | |||||||||
16,333 | American Water Works Co., Inc. | 559,242 | |||||||||
10,876 | Aqua America, Inc. | 246,994 | |||||||||
18,942 | Atmos Energy Corp. | 617,130 | |||||||||
8,796 | Avista Corp. | 232,566 | |||||||||
6,307 | Black Hills Corp. | 208,194 | |||||||||
50,503 | Calpine Corp.(a) | 946,931 | |||||||||
60,855 | CenterPoint Energy, Inc. | 1,229,880 | |||||||||
5,824 | Cleco Corp. | 237,619 | |||||||||
32,712 | CMS Energy Corp. | 752,049 | |||||||||
40,192 | Consolidated Edison, Inc. | 2,389,414 | |||||||||
66,134 | Dominion Resources, Inc. | 3,451,533 | |||||||||
28,108 | DTE Energy Co. | 1,584,729 | |||||||||
194,854 | Duke Energy Corp. | 4,175,721 | |||||||||
268,413 | Dynegy, Inc.(a)(b) | 110,049 | |||||||||
52,256 | Edison International | 2,299,787 | |||||||||
33,198 | Entergy Corp. | 2,176,461 | |||||||||
111,166 | Exelon Corp. | 4,336,586 | |||||||||
58,082 | FirstEnergy Corp. | 2,719,399 | |||||||||
344,358 | GenOn Energy, Inc.(a) | 733,483 | |||||||||
25,258 | Great Plains Energy, Inc. | 515,768 | |||||||||
15,085 | Hawaiian Electric Industries, Inc. | 400,356 | |||||||||
5,990 | IDACORP, Inc. | 244,033 | |||||||||
15,102 | Integrys Energy Group, Inc. | 825,173 | |||||||||
2,615 | ITC Holdings Corp. | 202,558 | |||||||||
27,153 | MDU Resources Group, Inc. | 622,890 | |||||||||
8,237 | National Fuel Gas Co. | 389,775 | |||||||||
5,264 | New Jersey Resources Corp. | 227,615 | |||||||||
51,307 | NextEra Energy, Inc. | 3,301,605 | |||||||||
46,758 | NiSource, Inc. | 1,152,585 | |||||||||
22,341 | Northeast Utilities | 821,479 | |||||||||
5,495 | NorthWestern Corp. | 195,182 | |||||||||
88,728 | NRG Energy, Inc.(a) | 1,508,376 | |||||||||
34,463 | NV Energy, Inc. | 573,809 | |||||||||
10,587 | OGE Energy Corp. | 571,275 | |||||||||
12,182 | ONEOK, Inc. | 1,046,312 | |||||||||
51,873 | Pepco Holdings, Inc. | 981,437 | |||||||||
62,608 | PG&E Corp. | 2,766,021 | |||||||||
8,258 | Piedmont Natural Gas Co., Inc. | 251,704 | |||||||||
16,662 | Pinnacle West Capital Corp. | 805,608 |
See Notes to Financial Statements.
33
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1000 Portfolio (PRF)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
15,467 | PNM Resources, Inc. | $ | 290,161 | ||||||||
12,471 | Portland General Electric Co. | 322,126 | |||||||||
62,821 | PPL Corp. | 1,718,154 | |||||||||
42,241 | Progress Energy, Inc. | 2,248,066 | |||||||||
80,740 | Public Service Enterprise Group, Inc. | 2,515,051 | |||||||||
23,193 | Questar Corp. | 458,062 | |||||||||
18,572 | SCANA Corp. | 856,541 | |||||||||
28,960 | Sempra Energy | 1,874,870 | |||||||||
92,608 | Southern Co. (The) | 4,254,412 | |||||||||
6,114 | Southwest Gas Corp. | 256,910 | |||||||||
33,228 | TECO Energy, Inc. | 598,769 | |||||||||
19,051 | UGI Corp. | 555,908 | |||||||||
5,622 | UIL Holdings Corp. | 193,228 | |||||||||
5,724 | UniSource Energy Corp. | 208,354 | |||||||||
12,785 | Vectren Corp. | 376,518 | |||||||||
16,422 | Westar Energy, Inc. | 471,147 | |||||||||
7,427 | WGL Holdings, Inc. | 297,897 | |||||||||
19,945 | Wisconsin Energy Corp. | 734,774 | |||||||||
66,364 | Xcel Energy, Inc. | 1,795,810 | |||||||||
74,352,268 | |||||||||||
Total Common Stocks and Other Equity Interests (Cost $1,301,293,653) | 1,388,508,281 | ||||||||||
Money Market Fund—0.0% | |||||||||||
134,127 | Goldman Sachs Financial Square Prime Obligations - Institutional Share Class (Cost $134,127) | 134,127 | |||||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan)—100.0% (Cost $1,301,427,780) | 1,388,642,408 | ||||||||||
Investments Purchased with Cash Collateral from Securities on Loan Money Market Fund—1.3% | |||||||||||
17,589,874 | Invesco Liquid Assets Portfolio - Institutional Class (Cost $17,589,874)(e)(f) | 17,589,874 | |||||||||
Total Investments (Cost $1,319,017,654)—101.3% | 1,406,232,282 | ||||||||||
Liabilities in excess of other assets—(1.3)% | (17,571,071 | ) | |||||||||
Net Assets—100.0% | $ | 1,388,661,211 |
Investment Abbreviations:
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) All or a portion of this security was out on loan at April 30, 2012.
(c) 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.
(d) When-issued security.
(e) The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower's return of the securities loaned. See Note 2H.
(f) The security and the Fund are advised by wholly owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.
See Notes to Financial Statements.
34
Schedule of Investments
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.0% | |||||||||||
Consumer Discretionary—17.7% | |||||||||||
33,468 | 1-800-FLOWERS.COM, Inc., Class A(a) | $ | 99,735 | ||||||||
4,746 | AFC Enterprises, Inc.(a) | 81,062 | |||||||||
13,989 | AH Belo Corp., Class A | 61,691 | |||||||||
15,102 | Ambassadors Group, Inc. | 81,400 | |||||||||
9,387 | AMC Networks, Inc., Class A(a) | 398,947 | |||||||||
88,286 | American Apparel, Inc.(a) | 86,962 | |||||||||
44,206 | American Axle & Manufacturing Holdings, Inc.(a) | 428,356 | |||||||||
50,939 | American Greetings Corp., Class A(b) | 815,024 | |||||||||
2,517 | American Public Education, Inc.(a) | 87,390 | |||||||||
2,908 | America's Car-Mart, Inc.(a) | 133,594 | |||||||||
36,047 | Ameristar Casinos, Inc. | 648,125 | |||||||||
6,932 | Arbitron, Inc. | 263,763 | |||||||||
28,053 | Arcos Dorados Holdings, Inc., Class A (British Virgin Islands)(b) | 501,307 | |||||||||
3,375 | Arctic Cat, Inc.(a) | 149,310 | |||||||||
5,933 | Ascent Capital Group, Inc., Class A(a) | 305,549 | |||||||||
14,190 | Bally Technologies, Inc.(a) | 688,924 | |||||||||
208,245 | Beazer Homes USA, Inc.(a)(b) | 645,559 | |||||||||
21,361 | bebe Stores, Inc. | 175,160 | |||||||||
83,306 | Belo Corp., Class A | 561,482 | |||||||||
11,101 | Benihana, Inc. | 153,083 | |||||||||
27,655 | Big 5 Sporting Goods Corp. | 231,472 | |||||||||
748 | Biglari Holdings, Inc.(a) | 303,935 | |||||||||
4,570 | BJ's Restaurants, Inc.(a) | 197,378 | |||||||||
3,083 | Blue Nile, Inc.(a)(b) | 93,353 | |||||||||
4,924 | Blyth, Inc. | 433,164 | |||||||||
20,460 | Bob Evans Farms, Inc. | 782,390 | |||||||||
43,463 | Bon-Ton Stores, Inc. (The)(b) | 269,471 | |||||||||
5,647 | Bravo Brio Restaurant Group, Inc.(a) | 114,069 | |||||||||
3,893 | Bridgepoint Education, Inc.(a)(b) | 83,933 | |||||||||
64,257 | Brown Shoe Co., Inc.(b) | 585,381 | |||||||||
11,228 | Buckle, Inc. (The)(b) | 518,509 | |||||||||
2,313 | Buffalo Wild Wings, Inc.(a) | 193,945 | |||||||||
36,815 | Build-A-Bear Workshop, Inc.(a) | 166,036 | |||||||||
73,660 | Callaway Golf Co.(b) | 451,536 | |||||||||
4,143 | Capella Education Co.(a) | 135,518 | |||||||||
5,829 | Caribou Coffee Co., Inc.(a) | 95,654 | |||||||||
10,424 | Carmike Cinemas, Inc.(a) | 138,952 | |||||||||
12,372 | Carrols Restaurant Group, Inc.(a) | 186,570 | |||||||||
37,636 | Casual Male Retail Group, Inc.(a) | 118,177 | |||||||||
14,981 | Cato Corp. (The), Class A | 416,921 | |||||||||
1,921 | Cavco Industries, Inc.(a) | 99,124 | |||||||||
12,489 | CEC Entertainment, Inc. | 477,330 | |||||||||
97,448 | Central European Media Enterprises Ltd., Class A (Bermuda)(a)(b) | 770,814 | |||||||||
146,101 | Charming Shoppes, Inc.(a) | 861,996 | |||||||||
26,050 | Cheesecake Factory, Inc. (The)(a) | 820,575 | |||||||||
10,136 | Cherokee, Inc. | 131,565 | |||||||||
53,825 | Chico's FAS, Inc. | 826,752 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
16,215 | Children's Place Retail Stores, Inc. (The)(a) | $ | 745,566 | ||||||||
22,380 | ChinaCast Education Corp.(a)(b) | 47,446 | |||||||||
7,157 | Choice Hotels International, Inc. | 269,246 | |||||||||
49,610 | Christopher & Banks Corp. | 92,771 | |||||||||
4,468 | Churchill Downs, Inc. | 265,220 | |||||||||
15,964 | Citi Trends, Inc.(a) | 177,839 | |||||||||
38,748 | Clear Channel Outdoor Holdings, Inc., Class A | 293,322 | |||||||||
9,801 | Coinstar, Inc.(a)(b) | 615,405 | |||||||||
187,175 | Coldwater Creek, Inc.(a) | 185,303 | |||||||||
6,599 | Columbia Sportswear Co. | 310,813 | |||||||||
21,897 | Conn's, Inc.(a) | 358,016 | |||||||||
155,841 | Corinthian Colleges, Inc.(a) | 598,429 | |||||||||
17,708 | Cost Plus, Inc.(a) | 343,004 | |||||||||
13,859 | Cracker Barrel Old Country Store, Inc. | 797,170 | |||||||||
19,299 | Crocs, Inc.(a) | 389,840 | |||||||||
6,312 | CSS Industries, Inc. | 120,875 | |||||||||
17,561 | CTC Media, Inc. | 190,186 | |||||||||
34,370 | Cumulus Media, Inc., Class A(a)(b) | 124,763 | |||||||||
7,600 | Deckers Outdoor Corp.(a)(b) | 387,676 | |||||||||
15,259 | Delphi Automotive PLC (Jersey Islands)(a) | 468,299 | |||||||||
6,047 | Delta Apparel, Inc.(a) | 86,533 | |||||||||
71,759 | Denny's Corp.(a) | 297,082 | |||||||||
11,020 | Destination Maternity Corp. | 218,637 | |||||||||
22,583 | DeVry, Inc. | 726,043 | |||||||||
27,501 | Digital Generation, Inc.(a) | 255,209 | |||||||||
9,281 | DineEquity, Inc.(a) | 450,871 | |||||||||
3,833 | Dorman Products, Inc.(a) | 183,141 | |||||||||
39,866 | DreamWorks Animation SKG, Inc., Class A(a)(b) | 717,987 | |||||||||
7,711 | Drew Industries, Inc.(a) | 229,634 | |||||||||
8,669 | DSW, Inc., Class A | 487,718 | |||||||||
8,928 | Dunkin' Brands Group, Inc. | 288,999 | |||||||||
38,667 | E.W. Scripps Co. (The), Class A(a) | 354,190 | |||||||||
28,685 | Education Management Corp.(a) | 355,694 | |||||||||
45,426 | Entercom Communications Corp., Class A(a) | 281,187 | |||||||||
16,915 | Ethan Allen Interiors, Inc. | 392,428 | |||||||||
27,249 | Express, Inc.(a) | 643,621 | |||||||||
40,356 | Federal-Mogul Corp.(a) | 521,803 | |||||||||
20,025 | Finish Line, Inc. (The), Class A | 445,756 | |||||||||
3,690 | Fisher Communications, Inc.(a) | 120,995 | |||||||||
34,942 | Fred's, Inc., Class A | 500,369 | |||||||||
10,023 | Fuel Systems Solutions, Inc.(a) | 235,039 | |||||||||
129,257 | Furniture Brands International, Inc.(a)(b) | 204,226 | |||||||||
23,887 | Gaylord Entertainment Co.(a) | 751,963 | |||||||||
10,613 | Genesco, Inc.(a) | 795,975 | |||||||||
13,243 | G-III Apparel Group Ltd.(a) | 355,575 | |||||||||
20,962 | GNC Holdings, Inc., Class A | 818,776 | |||||||||
4,717 | Gordmans Stores, Inc.(a) | 100,189 | |||||||||
7,933 | Grand Canyon Education, Inc.(a) | 137,955 | |||||||||
36,025 | Gray Television, Inc.(a) | 64,845 |
See Notes to Financial Statements.
35
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
48,124 | Harte-Hanks, Inc. | $ | 404,242 | ||||||||
16,250 | Haverty Furniture Cos., Inc. | 195,000 | |||||||||
11,587 | Helen of Troy Ltd.(a) | 400,910 | |||||||||
18,816 | hhgregg, Inc.(a)(b) | 196,815 | |||||||||
5,793 | Hibbett Sports, Inc.(a) | 345,958 | |||||||||
27,064 | Hillenbrand, Inc. | 566,720 | |||||||||
33,851 | Hot Topic, Inc. | 331,740 | |||||||||
241,775 | Hovnanian Enterprises, Inc., Class A(a)(b) | 483,550 | |||||||||
28,671 | Iconix Brand Group, Inc.(a) | 439,813 | |||||||||
17,048 | International Speedway Corp., Class A | 455,011 | |||||||||
19,220 | Interval Leisure Group, Inc. | 332,122 | |||||||||
20,709 | Isle of Capri Casinos, Inc.(a) | 129,431 | |||||||||
11,944 | ITT Educational Services, Inc.(a)(b) | 788,543 | |||||||||
27,959 | JAKKS Pacific, Inc. | 533,178 | |||||||||
9,198 | Jos. A. Bank Clothiers, Inc.(a) | 437,365 | |||||||||
33,245 | Journal Communications, Inc., Class A(a) | 139,297 | |||||||||
7,597 | K12, Inc.(a) | 193,723 | |||||||||
5,317 | Kenneth Cole Productions, Inc., Class A(a) | 84,700 | |||||||||
7,990 | Kirkland's, Inc.(a) | 116,974 | |||||||||
13,452 | Knology, Inc.(a) | 261,641 | |||||||||
17,283 | Krispy Kreme Doughnuts, Inc.(a) | 126,684 | |||||||||
54,829 | K-Swiss, Inc., Class A(a)(b) | 201,771 | |||||||||
28,940 | La-Z-Boy, Inc.(a) | 436,126 | |||||||||
16,969 | LeapFrog Enterprises, Inc.(a) | 158,490 | |||||||||
17,695 | Libbey, Inc.(a) | 252,508 | |||||||||
14,729 | Life Time Fitness, Inc.(a) | 685,782 | |||||||||
6,290 | Lifetime Brands, Inc. | 73,278 | |||||||||
36,702 | LIN TV Corp., Class A(a) | 144,973 | |||||||||
28,330 | Lincoln Educational Services Corp. | 207,942 | |||||||||
44,098 | Lions Gate Entertainment Corp. (Canada)(a)(b) | 539,319 | |||||||||
21,309 | Lithia Motors, Inc., Class A | 571,720 | |||||||||
84,894 | Liz Claiborne, Inc.(a)(b) | 1,137,580 | |||||||||
27,980 | LodgeNet Interactive Corp.(a)(b) | 64,354 | |||||||||
3,865 | Lululemon Athletica, Inc.(a)(b) | 286,551 | |||||||||
7,248 | Lumber Liquidators Holdings, Inc.(a)(b) | 209,685 | |||||||||
17,293 | M/I Homes, Inc.(a) | 229,997 | |||||||||
21,452 | Madison Square Garden Co. (The), Class A(a) | 771,628 | |||||||||
12,039 | Maidenform Brands, Inc.(a) | 274,850 | |||||||||
16,234 | Marcus Corp. | 203,087 | |||||||||
22,719 | MarineMax, Inc.(a) | 242,185 | |||||||||
13,838 | Matthews International Corp., Class A | 415,140 | |||||||||
159,193 | McClatchy Co. (The), Class A(a)(b) | 433,005 | |||||||||
28,858 | MDC Holdings, Inc. | 811,198 | |||||||||
28,573 | Media General, Inc., Class A(a)(b) | 102,006 | |||||||||
23,048 | Meredith Corp.(b) | 664,474 | |||||||||
27,807 | Meritage Homes Corp.(a) | 789,441 | |||||||||
54,171 | Modine Manufacturing Co.(a) | 427,951 | |||||||||
5,680 | Monro Muffler Brake, Inc. | 234,357 | |||||||||
25,163 | Morgans Hotel Group Co.(a) | 124,808 | |||||||||
3,456 | Morningstar, Inc. | 199,480 | |||||||||
11,127 | Motorcar Parts of America, Inc.(a)(b) | 84,120 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
7,512 | Movado Group, Inc. | $ | 212,965 | ||||||||
12,996 | Multimedia Games Holding Co., Inc.(a) | 147,635 | |||||||||
22,878 | National CineMedia, Inc. | 326,927 | |||||||||
5,857 | Netflix, Inc.(a) | 469,380 | |||||||||
34,903 | New York & Co., Inc.(a) | 137,867 | |||||||||
8,569 | Nexstar Broadcasting Group, Inc., Class A(a) | 66,410 | |||||||||
26,469 | Nutrisystem, Inc.(b) | 306,511 | |||||||||
47,871 | Orbitz Worldwide, Inc.(a) | 174,729 | |||||||||
39,343 | Orient-Express Hotels Ltd., Class A(a) | 420,577 | |||||||||
23,597 | Overstock.com, Inc.(a)(b) | 142,290 | |||||||||
5,998 | Oxford Industries, Inc. | 287,844 | |||||||||
11,051 | P.F. Chang's China Bistro, Inc. | 438,614 | |||||||||
110,356 | Pacific Sunwear of California, Inc.(a)(b) | 162,223 | |||||||||
4,263 | Panera Bread Co., Class A(a) | 673,213 | |||||||||
8,991 | Papa John's International, Inc.(a) | 362,157 | |||||||||
2,518 | Peet's Coffee & Tea, Inc.(a) | 193,433 | |||||||||
41,701 | Pep Boys - Manny, Moe & Jack (The) | 622,596 | |||||||||
15,335 | Perry Ellis International, Inc.(a) | 286,918 | |||||||||
6,919 | PetMed Express, Inc. | 93,199 | |||||||||
20,730 | Pier 1 Imports, Inc. | 356,141 | |||||||||
52,334 | Pinnacle Entertainment, Inc.(a) | 580,907 | |||||||||
17,636 | Pool Corp. | 650,945 | |||||||||
152,584 | Quiksilver, Inc.(a) | 527,941 | |||||||||
9,070 | Red Lion Hotels Corp.(a) | 75,644 | |||||||||
8,501 | Red Robin Gourmet Burgers, Inc.(a) | 303,146 | |||||||||
74,665 | Ruby Tuesday, Inc.(a) | 507,722 | |||||||||
5,508 | rue21, Inc.(a) | 167,168 | |||||||||
24,603 | Ruth's Hospitality Group, Inc.(a) | 170,253 | |||||||||
43,090 | Ryland Group, Inc. (The) | 969,956 | |||||||||
32,242 | Sally Beauty Holdings, Inc.(a) | 857,637 | |||||||||
23,617 | Scholastic Corp. | 721,499 | |||||||||
66,958 | School Specialty, Inc.(a)(b) | 218,953 | |||||||||
47,800 | Scientific Games Corp., Class A(a) | 485,648 | |||||||||
55,041 | Sealy Corp.(a)(b) | 113,384 | |||||||||
7,961 | Select Comfort Corp.(a) | 229,914 | |||||||||
12,415 | Shoe Carnival, Inc.(a) | 241,348 | |||||||||
11,570 | Shuffle Master, Inc.(a) | 204,442 | |||||||||
6,592 | �� | Shutterfly, Inc.(a) | 205,143 | ||||||||
17,015 | Sinclair Broadcast Group, Inc., Class A | 174,914 | |||||||||
193,469 | Sirius XM Radio, Inc.(a)(b) | 437,240 | |||||||||
15,223 | Six Flags Entertainment Corp. | 729,334 | |||||||||
48,605 | Skechers U.S.A., Inc., Class A(a)(b) | 907,455 | |||||||||
14,294 | Skyline Corp. | 78,474 | |||||||||
29,411 | Smith & Wesson Holding Corp.(a) | 242,641 | |||||||||
1,980 | SodaStream International Ltd. (Israel)(a)(b) | 68,013 | |||||||||
50,079 | Sonic Corp.(a) | 361,570 | |||||||||
16,961 | Sotheby's | 666,907 | |||||||||
31,108 | Spartan Motors, Inc. | 135,320 | |||||||||
8,847 | Speedway Motorsports, Inc. | 150,930 | |||||||||
36,609 | Stage Stores, Inc. | 559,019 | |||||||||
11,358 | Standard Motor Products, Inc. | 171,165 |
See Notes to Financial Statements.
36
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
55,581 | Standard Pacific Corp.(a)(b) | $ | 281,240 | ||||||||
34,527 | Stein Mart, Inc.(a) | 221,663 | |||||||||
5,659 | Steiner Leisure Ltd.(a) | 265,747 | |||||||||
4,152 | Steinway Musical Instruments, Inc.(a) | 104,672 | |||||||||
6,508 | Steven Madden Ltd.(a) | 281,211 | |||||||||
56,654 | Stewart Enterprises, Inc., Class A | 358,053 | |||||||||
24,095 | Stoneridge, Inc.(a) | 207,699 | |||||||||
4,534 | Strayer Education, Inc.(b) | 447,415 | |||||||||
2,537 | Sturm Ruger & Co., Inc. | 144,787 | |||||||||
20,240 | Superior Industries International, Inc. | 346,306 | |||||||||
48,228 | SuperMedia, Inc.(a)(b) | 82,952 | |||||||||
7,004 | Systemax, Inc.(a) | 120,259 | |||||||||
177,750 | Talbots, Inc. (The)(a)(b) | 526,140 | |||||||||
6,250 | Tempur-Pedic International, Inc.(a) | 367,750 | |||||||||
20,277 | Texas Roadhouse, Inc. | 349,778 | |||||||||
24,885 | Thor Industries, Inc. | 841,860 | |||||||||
7,622 | Tower International, Inc.(a) | 81,098 | |||||||||
8,773 | Town Sports International Holdings, Inc.(a) | 112,470 | |||||||||
111,976 | TravelCenters of America LLC(a) | 705,449 | |||||||||
16,056 | TripAdvisor, Inc.(a)(b) | 602,261 | |||||||||
8,473 | True Religion Apparel, Inc.(a) | 230,127 | |||||||||
49,562 | Tuesday Morning Corp.(a) | 200,230 | |||||||||
4,699 | Ulta Salon, Cosmetics & Fragrance, Inc. | 414,358 | |||||||||
3,025 | Under Armour, Inc., Class A(a) | 296,238 | |||||||||
18,954 | Unifi, Inc.(a) | 210,768 | |||||||||
8,625 | Universal Electronics, Inc.(a) | 145,935 | |||||||||
9,757 | Universal Technical Institute, Inc. | 117,084 | |||||||||
18,092 | Vail Resorts, Inc. | 737,792 | |||||||||
72,552 | ValueVision Media, Inc., Class A(a)(b) | 117,534 | |||||||||
2,098 | Vera Bradley, Inc.(a)(b) | 54,506 | |||||||||
7,168 | Vitamin Shoppe, Inc.(a) | 337,398 | |||||||||
18,265 | VOXX International Corp.(a) | 231,783 | |||||||||
6,551 | Weight Watchers International, Inc. | 497,614 | |||||||||
13,545 | West Marine, Inc.(a) | 158,612 | |||||||||
77,625 | Wet Seal, Inc. (The), Class A(a) | 255,386 | |||||||||
22,114 | Winnebago Industries, Inc.(a)(b) | 215,611 | |||||||||
30,018 | WMS Industries, Inc.(a) | 735,741 | |||||||||
15,932 | Wolverine World Wide, Inc. | 668,347 | |||||||||
29,483 | World Wrestling Entertainment, Inc., Class A(b) | 232,326 | |||||||||
138,250 | Zale Corp.(a) | 378,805 | |||||||||
5,306 | Zumiez, Inc.(a)(b) | 194,518 | |||||||||
82,291,579 | |||||||||||
Consumer Staples—3.5% | |||||||||||
19,051 | Adecoagro SA (Luxembourg)(a) | 169,935 | |||||||||
68,550 | Alliance One International, Inc.(a) | 242,667 | |||||||||
56,687 | American Oriental Bioengineering, Inc.(a)(b) | 78,058 | |||||||||
16,130 | Andersons, Inc. (The) | 812,952 | |||||||||
17,219 | B&G Foods, Inc. | 382,951 | |||||||||
1,532 | Boston Beer Co., Inc. (The), Class A(a)(b) | 158,286 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
4,867 | Calavo Growers, Inc. | $ | 139,586 | ||||||||
9,032 | Cal-Maine Foods, Inc. | 325,423 | |||||||||
14,102 | Central Garden & Pet Co.(a) | 149,199 | |||||||||
40,193 | Central Garden & Pet Co., Class A(a) | 429,663 | |||||||||
4,288 | Coca-Cola Bottling Co. Consolidated | 275,075 | |||||||||
26,666 | Darling International, Inc.(a) | 436,789 | |||||||||
10,063 | Diamond Foods, Inc.(b) | 210,317 | |||||||||
12,360 | Elizabeth Arden, Inc.(a) | 481,793 | |||||||||
5,893 | Fresh Market, Inc. (The)(a) | 301,545 | |||||||||
7,377 | Green Mountain Coffee Roasters, Inc.(a)(b) | 359,629 | |||||||||
14,178 | Hain Celestial Group, Inc. (The)(a) | 670,619 | |||||||||
55,592 | Imperial Sugar Co.(b) | 225,148 | |||||||||
12,926 | Ingles Markets, Inc., Class A | 224,783 | |||||||||
4,981 | Inter Parfums, Inc. | 78,451 | |||||||||
4,784 | J & J Snack Foods Corp. | 268,191 | |||||||||
6,989 | Lancaster Colony Corp. | 455,753 | |||||||||
4,821 | Medifast, Inc.(a) | 92,660 | |||||||||
10,981 | Monster Beverage Corp.(a) | 713,326 | |||||||||
8,041 | National Beverage Corp.(a) | 119,489 | |||||||||
11,639 | Nu Skin Enterprises, Inc., Class A | 620,359 | |||||||||
6,595 | Nutraceutical International Corp.(a) | 101,101 | |||||||||
15,192 | Omega Protein Corp.(a) | 108,775 | |||||||||
84,470 | Pilgrim's Pride Corp.(a) | 603,116 | |||||||||
19,062 | Prestige Brands Holdings, Inc.(a) | 323,863 | |||||||||
5,840 | PriceSmart, Inc. | 482,034 | |||||||||
10,636 | Revlon, Inc., Class A(a) | 181,663 | |||||||||
12,789 | Sanderson Farms, Inc.(b) | 660,040 | |||||||||
10,114 | Schiff Nutrition International, Inc.(a) | 166,375 | |||||||||
8,398 | Seneca Foods Corp., Class A(a) | 195,589 | |||||||||
24,685 | Smart Balance, Inc.(a) | 145,641 | |||||||||
23,289 | Snyders-Lance, Inc. | 602,719 | |||||||||
25,718 | Spartan Stores, Inc. | 468,839 | |||||||||
22,845 | Spectrum Brands Holdings, Inc.(a) | 788,381 | |||||||||
17,884 | Susser Holdings Corp.(a) | 477,324 | |||||||||
9,727 | Tootsie Roll Industries, Inc.(b) | 231,600 | |||||||||
14,505 | TreeHouse Foods, Inc.(a) | 834,182 | |||||||||
3,175 | USANA Health Sciences, Inc.(a)(b) | 132,398 | |||||||||
23,435 | Vector Group Ltd.(b) | 406,597 | |||||||||
3,723 | Village Super Market, Inc., Class A | 102,755 | |||||||||
5,886 | WD-40 Co. | 265,341 | |||||||||
8,501 | Weis Markets, Inc. | 379,145 | |||||||||
20,051 | Zhongpin, Inc.(a)(b) | 189,281 | |||||||||
16,269,406 | |||||||||||
Energy—5.7% | |||||||||||
2,208 | Adams Resources & Energy, Inc. | 134,092 | |||||||||
33,586 | Alon USA Energy, Inc. | 303,617 | |||||||||
15,281 | Amyris, Inc.(a)(b) | 47,830 | |||||||||
4,508 | Approach Resources, Inc.(a) | 161,747 | |||||||||
43,580 | ATP Oil & Gas Corp.(a)(b) | 329,465 | |||||||||
25,850 | Basic Energy Services, Inc.(a) | 372,240 |
See Notes to Financial Statements.
37
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
13,835 | Berry Petroleum Co., Class A | $ | 630,184 | ||||||||
28,677 | BPZ Resources, Inc.(a)(b) | 116,142 | |||||||||
185,432 | Cal Dive International, Inc.(a) | 717,622 | |||||||||
19,034 | Callon Petroleum Co.(a) | 110,588 | |||||||||
3,205 | CARBO Ceramics, Inc.(b) | 269,508 | |||||||||
10,315 | Carrizo Oil & Gas, Inc.(a) | 289,233 | |||||||||
1,990 | Clayton Williams Energy, Inc.(a) | 146,345 | |||||||||
6,574 | Clean Energy Fuels Corp.(a)(b) | 126,484 | |||||||||
45,865 | Cloud Peak Energy, Inc.(a) | 705,862 | |||||||||
7,498 | Cobalt International Energy, Inc.(a) | 200,646 | |||||||||
44,944 | Comstock Resources, Inc.(a)(b) | 789,666 | |||||||||
3,290 | Contango Oil & Gas Co.(a) | 178,515 | |||||||||
3,196 | Continental Resources, Inc.(a) | 285,243 | |||||||||
4,221 | Core Laboratories NV (Netherlands) | 578,193 | |||||||||
26,355 | Crimson Exploration, Inc.(a)(b) | 143,635 | |||||||||
45,572 | Crosstex Energy, Inc. | 679,023 | |||||||||
4,695 | Dawson Geophysical Co.(a) | 126,061 | |||||||||
19,935 | Delek US Holdings, Inc. | 324,940 | |||||||||
172,756 | DHT Holdings, Inc.(b) | 138,205 | |||||||||
6,384 | Dril-Quip, Inc.(a) | 430,218 | |||||||||
12,603 | Endeavour International Corp.(a) | 157,285 | |||||||||
20,345 | Energy Partners Ltd.(a) | 331,217 | |||||||||
11,501 | Energy XXI Bermuda Ltd. (Bermuda)(a) | 433,358 | |||||||||
32,584 | Gastar Exploration Ltd. (Canada)(a) | 91,561 | |||||||||
2,859 | GeoResources, Inc.(a) | 107,813 | |||||||||
10,127 | Global Geophysical Services, Inc.(a) | 96,915 | |||||||||
63,706 | GMX Resources, Inc.(a)(b) | 87,277 | |||||||||
9,435 | Goodrich Petroleum Corp.(a)(b) | 158,225 | |||||||||
75,078 | Gran Tierra Energy, Inc. (Canada)(a) | 484,253 | |||||||||
13,976 | Green Plains Renewable Energy, Inc.(a) | 111,668 | |||||||||
6,841 | Gulf Island Fabrication, Inc. | 191,685 | |||||||||
12,065 | Gulfmark Offshore, Inc., Class A(a) | 581,171 | |||||||||
4,805 | Gulfport Energy Corp.(a) | 125,939 | |||||||||
15,671 | Harvest Natural Resources, Inc.(a)(b) | 107,816 | |||||||||
19,400 | Heckmann Corp.(a)(b) | 73,720 | |||||||||
152,428 | Hercules Offshore, Inc.(a) | 774,334 | |||||||||
15,048 | Hornbeck Offshore Services, Inc.(a) | 626,448 | |||||||||
6,469 | InterOil Corp. (Canada)(a)(b) | 390,986 | |||||||||
55,720 | ION Geophysical Corp.(a) | 347,136 | |||||||||
53,029 | James River Coal Co.(a)(b) | 263,024 | |||||||||
21,477 | Knightsbridge Tankers Ltd. (Bermuda)(b) | 271,899 | |||||||||
10,480 | Kodiak Oil & Gas Corp. (Canada)(a) | 92,748 | |||||||||
30,562 | L&L Energy, Inc.(a)(b) | 68,764 | |||||||||
34,598 | Lone Pine Resources, Inc.(a) | 206,204 | |||||||||
5,177 | Lufkin Industries, Inc. | 397,801 | |||||||||
17,026 | Matrix Service Co.(a) | 232,405 | |||||||||
42,009 | McMoRan Exploration Co.(a)(b) | 369,679 | |||||||||
17,444 | Miller Energy Resources, Inc.(a)(b) | 94,721 | |||||||||
3,395 | Mitcham Industries, Inc.(a) | 80,665 | |||||||||
7,104 | Natural Gas Services Group, Inc.(a) | 92,636 | |||||||||
48,874 | Newpark Resources, Inc.(a) | 310,839 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
43,547 | Nordic American Tankers Ltd. (Bermuda)(b) | $ | 632,302 | ||||||||
6,857 | Northern Oil And Gas, Inc.(a) | 133,231 | |||||||||
5,600 | Oasis Petroleum, Inc.(a) | 185,192 | |||||||||
14,209 | Ocean Rig UDW, Inc. (Marshall Islands)(a) | 247,663 | |||||||||
307,243 | Oilsands Quest, Inc.(a) | 13,749 | |||||||||
690 | OYO Geospace Corp.(a) | 79,502 | |||||||||
100,106 | Parker Drilling Co.(a) | 517,548 | |||||||||
90,518 | Patriot Coal Corp.(a)(b) | 527,720 | |||||||||
138,736 | Penn Virginia Corp. | 710,328 | |||||||||
14,291 | Petroleum Development Corp.(a) | 491,467 | |||||||||
45,442 | PetroQuest Energy, Inc.(a) | 274,470 | |||||||||
6,395 | PHI, Inc.(a) | 170,299 | |||||||||
40,730 | Pioneer Drilling Co.(a) | 320,952 | |||||||||
52,633 | Quicksilver Resources, Inc.(a)(b) | 247,375 | |||||||||
11,366 | Resolute Energy Corp.(a)(b) | 120,593 | |||||||||
4,646 | REX American Resources Corp.(a) | 128,880 | |||||||||
9,169 | Rex Energy Corp.(a) | 96,366 | |||||||||
9,449 | Rosetta Resources, Inc.(a) | 475,001 | |||||||||
22,996 | RPC, Inc.(b) | 237,779 | |||||||||
18,041 | Scorpio Tankers, Inc. (Marshall Islands)(a) | 122,138 | |||||||||
24,798 | Stone Energy Corp.(a) | 695,584 | |||||||||
26,607 | Swift Energy Co.(a) | 804,862 | |||||||||
77,755 | Teekay Tankers Ltd., Class A (Marshall Islands)(b) | 401,216 | |||||||||
19,999 | Tesco Corp. (Canada)(a) | 326,584 | |||||||||
75,586 | TETRA Technologies, Inc.(a) | 658,354 | |||||||||
53,811 | TransAtlantic Petroleum Ltd. (Bermuda)(a)(b) | 62,421 | |||||||||
34,505 | Tsakos Energy Navigation Ltd. (Bermuda) | 219,107 | |||||||||
14,896 | Union Drilling, Inc.(a) | 82,971 | |||||||||
22,440 | VAALCO Energy, Inc.(a) | 203,531 | |||||||||
174,633 | Vantage Drilling Co. (Cayman Islands)(a)(b) | 275,920 | |||||||||
11,084 | Venoco, Inc.(a) | 123,143 | |||||||||
13,488 | W&T Offshore, Inc. | 266,658 | |||||||||
27,606 | Warren Resources, Inc.(a) | 85,303 | |||||||||
9,558 | Westmoreland Coal Co.(a) | 96,440 | |||||||||
89,095 | Willbros Group, Inc.(a) | 481,113 | |||||||||
26,611,258 | |||||||||||
Financials—21.6% | |||||||||||
10,152 | 1st Source Corp. | 230,349 | |||||||||
11,841 | 1st United Bancorp, Inc.(a) | 71,756 | |||||||||
16,339 | Acadia Realty Trust REIT | 378,738 | |||||||||
4,736 | Agree Realty Corp. REIT | 107,981 | |||||||||
307 | Alexander's, Inc. REIT | 119,616 | |||||||||
3,202 | Alliance Financial Corp. | 97,693 | |||||||||
2,788 | Altisource Portfolio Solutions SA (Luxembourg)(a) | 166,806 | |||||||||
3,730 | American Assets Trust, Inc. REIT | 87,692 | |||||||||
17,447 | American Campus Communities, Inc. REIT | 775,519 | |||||||||
54,265 | American Equity Investment Life Holding Co.(b) | 665,289 | |||||||||
8,806 | American National Insurance Co. | 618,181 |
See Notes to Financial Statements.
38
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
8,702 | American Safety Insurance Holdings Ltd. (Bermuda)(a) | $ | 164,729 | ||||||||
12,242 | Ameris Bancorp(a) | 151,801 | |||||||||
11,358 | AMERISAFE, Inc.(a) | 303,486 | |||||||||
3,180 | Ames National Corp. | 70,214 | |||||||||
8,957 | AmTrust Financial Services, Inc. | 243,989 | |||||||||
115,148 | Anworth Mortgage Asset Corp. REIT | 776,098 | |||||||||
9,825 | Apollo Commercial Real Estate Finance, Inc. REIT | 158,477 | |||||||||
23,776 | Argo Group International Holdings Ltd. (Bermuda) | 686,175 | |||||||||
6,362 | Arrow Financial Corp. | 152,306 | |||||||||
24,381 | Artio Global Investors, Inc.(b) | 88,259 | |||||||||
87,322 | Ashford Hospitality Trust, Inc. REIT | 745,730 | |||||||||
14,289 | Associated Estates Realty Corp. REIT | 241,913 | |||||||||
13,158 | AV Homes, Inc.(a) | 164,080 | |||||||||
3,972 | Baldwin & Lyons, Inc., Class B | 86,470 | |||||||||
3,118 | BancFirst Corp. | 130,021 | |||||||||
16,721 | Banco Latinoamericano de Comercio Exterior SA, Class E (Supranational) | 348,633 | |||||||||
15,585 | Bancorp, Inc. (The)(a) | 160,058 | |||||||||
27,449 | Bank Mutual Corp. | 107,051 | |||||||||
2,409 | Bank of Marin Bancorp | 89,302 | |||||||||
6,125 | Bank of the Ozarks, Inc. | 189,262 | |||||||||
12,541 | BankFinancial Corp. | 83,523 | |||||||||
18,806 | BankUnited, Inc. | 462,628 | |||||||||
11,661 | Banner Corp. | 255,959 | |||||||||
17,420 | BBCN Bancorp, Inc.(a) | 191,272 | |||||||||
10,434 | Beneficial Mutual Bancorp, Inc.(a) | 90,463 | |||||||||
9,067 | Berkshire Hills Bancorp, Inc. | 205,730 | |||||||||
23,779 | BGC Partners, Inc., Class A | 165,740 | |||||||||
9,547 | BOK Financial Corp. | 544,465 | |||||||||
34,669 | Boston Private Financial Holdings, Inc. | 323,115 | |||||||||
3,765 | Bridge Bancorp, Inc. | 73,342 | |||||||||
45,728 | Brookline Bancorp, Inc. | 410,637 | |||||||||
5,479 | Bryn Mawr Bank Corp. | 117,744 | |||||||||
25,568 | Calamos Asset Management, Inc., Class A | 330,339 | |||||||||
3,443 | Camden National Corp. | 111,966 | |||||||||
9,041 | Campus Crest Communities, Inc. REIT | 105,328 | |||||||||
59,191 | Capitol Federal Financial, Inc. | 699,046 | |||||||||
50,024 | CapLease, Inc. REIT | 207,600 | |||||||||
62,711 | Capstead Mortgage Corp. REIT | 861,022 | |||||||||
9,670 | Cardinal Financial Corp. | 116,717 | |||||||||
12,553 | Cash America International, Inc. | 586,853 | |||||||||
41,680 | Cathay General Bancorp | 717,730 | |||||||||
15,658 | CBOE Holdings, Inc. | 413,998 | |||||||||
76,293 | Cedar Realty Trust, Inc. REIT | 398,249 | |||||||||
14,989 | Centerstate Banks, Inc. | 120,512 | |||||||||
18,224 | Central Pacific Financial Corp.(a) | 259,145 | |||||||||
18,889 | Chemical Financial Corp. | 416,880 | |||||||||
6,569 | Chesapeake Lodging Trust REIT | 118,899 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
5,747 | Citizens & Northern Corp. | $ | 108,848 | ||||||||
48,196 | Citizens Republic Bancorp, Inc.(a) | 813,067 | |||||||||
12,658 | Citizens, Inc.(a) | 121,643 | |||||||||
9,531 | City Holding Co.(b) | 317,859 | |||||||||
17,674 | CNA Financial Corp. | 541,178 | |||||||||
5,642 | CNB Financial Corp. | 92,754 | |||||||||
24,854 | CoBiz Financial, Inc. | 155,337 | |||||||||
3,609 | Cohen & Steers, Inc. | 127,181 | |||||||||
5,120 | Colony Financial, Inc. REIT | 86,989 | |||||||||
14,804 | Columbia Banking System, Inc. | 303,334 | |||||||||
15,819 | Community Bank System, Inc. | 444,830 | |||||||||
9,532 | Community Trust Bancorp, Inc. | 304,547 | |||||||||
4,265 | Coresite Realty Corp. REIT | 106,241 | |||||||||
81,185 | Cousins Properties, Inc. REIT | 638,114 | |||||||||
53,675 | Cowen Group, Inc., Class A(a) | 135,261 | |||||||||
15,863 | Crawford & Co., Class A | 59,328 | |||||||||
19,782 | Crawford & Co., Class B | 94,360 | |||||||||
1,384 | Credit Acceptance Corp.(a) | 130,138 | |||||||||
8,386 | CreXus Investment Corp. REIT | 87,969 | |||||||||
44,794 | CubeSmart REIT | 562,613 | |||||||||
51,119 | CVB Financial Corp. | 591,447 | |||||||||
21,114 | CYS Investments, Inc. REIT | 289,895 | |||||||||
19,838 | DFC Global Corp.(a) | 346,768 | |||||||||
941 | Diamond Hill Investment Group, Inc. | 71,412 | |||||||||
20,843 | Dime Community Bancshares | 288,884 | |||||||||
4,445 | Donegal Group, Inc., Class A | 60,541 | |||||||||
163,941 | Doral Financial Corp.(a) | 300,012 | |||||||||
38,876 | Douglas Emmett, Inc. REIT | 903,478 | |||||||||
8,429 | Duff & Phelps Corp., Class A | 134,021 | |||||||||
13,446 | DuPont Fabros Technology, Inc. REIT(b) | 365,059 | |||||||||
11,418 | Dynex Capital, Inc. REIT | 107,672 | |||||||||
5,613 | Eagle Bancorp, Inc.(a) | 99,855 | |||||||||
10,630 | EastGroup Properties, Inc. REIT | 534,689 | |||||||||
12,937 | Edelman Financial Group, Inc. | 114,234 | |||||||||
24,608 | Education Realty Trust, Inc. REIT | 277,332 | |||||||||
7,183 | eHealth, Inc.(a) | 127,283 | |||||||||
22,795 | Employers Holdings, Inc. | 394,809 | |||||||||
2,551 | Enstar Group Ltd. (Bermuda)(a) | 240,228 | |||||||||
9,742 | Enterprise Financial Services Corp. | 117,781 | |||||||||
5,523 | Equity Lifestyle Properties, Inc. REIT | 386,279 | |||||||||
24,350 | Equity One, Inc. REIT | 505,993 | |||||||||
5,268 | ESB Financial Corp. | 70,749 | |||||||||
7,003 | ESSA Bancorp, Inc. | 68,279 | |||||||||
5,249 | Evercore Partners, Inc., Class A | 138,731 | |||||||||
24,951 | Extra Space Storage, Inc. REIT | 757,263 | |||||||||
11,964 | EZCORP, Inc., Class A(a) | 320,516 | |||||||||
11,521 | FBL Financial Group, Inc., Class A(b) | 335,492 | |||||||||
30,172 | FBR & Co.(a) | 79,956 | |||||||||
5,541 | Federal Agricultural Mortgage Corp., Class C | 126,667 | |||||||||
133,314 | FelCor Lodging Trust, Inc. REIT(a) | 562,585 |
See Notes to Financial Statements.
39
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
3,952 | Financial Engines, Inc.(a) | $ | 90,264 | ||||||||
5,675 | Financial Institutions, Inc. | 96,021 | |||||||||
11,064 | First Bancorp | 110,861 | |||||||||
21,388 | First BanCorp.(a) | 91,113 | |||||||||
44,981 | First Busey Corp. | 208,712 | |||||||||
6,296 | First Cash Financial Services, Inc.(a) | 257,884 | |||||||||
2,675 | First Citizens BancShares, Inc., Class A | 463,578 | |||||||||
92,681 | First Commonwealth Financial Corp. | 595,939 | |||||||||
13,304 | First Community Bancshares, Inc. | 178,141 | |||||||||
5,246 | First Defiance Financial Corp. | 90,126 | |||||||||
27,295 | First Financial Bancorp. | 458,829 | |||||||||
11,657 | First Financial Bankshares, Inc.(b) | 394,473 | |||||||||
5,391 | First Financial Corp. | 161,730 | |||||||||
14,948 | First Financial Holdings, Inc. | 172,500 | |||||||||
45,864 | First Industrial Realty Trust, Inc. REIT(a) | 565,962 | |||||||||
13,428 | First Interstate BancSystem, Inc. | 189,201 | |||||||||
18,602 | First Merchants Corp. | 229,363 | |||||||||
58,712 | First Midwest Bancorp, Inc. | 625,283 | |||||||||
2,982 | First of Long Island Corp. (The) | 82,094 | |||||||||
30,325 | First Potomac Realty Trust REIT | 377,243 | |||||||||
368,155 | Flagstar Bancorp, Inc.(a) | 320,442 | |||||||||
39,406 | Flagstone Reinsurance Holdings SA (Luxembourg) | 295,545 | |||||||||
20,311 | Flushing Financial Corp. | 264,652 | |||||||||
49,096 | Forest City Enterprises, Inc., Class A(a) | 783,081 | |||||||||
16,623 | Forestar Group, Inc.(a) | 255,662 | |||||||||
53,009 | Franklin Street Properties Corp. REIT | 533,801 | |||||||||
14,313 | FXCM, Inc., Class A | 165,745 | |||||||||
12,871 | Gain Capital Holdings, Inc.(b) | 66,028 | |||||||||
2,047 | GAMCO Investors, Inc., Class A | 92,238 | |||||||||
5,416 | German American Bancorp, Inc. | 103,121 | |||||||||
12,644 | Getty Realty Corp. REIT(b) | 200,028 | |||||||||
66,052 | GFI Group, Inc. | 217,972 | |||||||||
43,355 | Glacier Bancorp, Inc. | 645,989 | |||||||||
6,585 | Gladstone Commercial Corp. REIT | 111,879 | |||||||||
60,304 | Gleacher & Co., Inc.(a) | 62,716 | |||||||||
45,804 | Glimcher Realty Trust REIT | 453,002 | |||||||||
9,504 | Global Indemnity PLC (Ireland)(a) | 171,167 | |||||||||
9,451 | Government Properties Income Trust REIT | 219,452 | |||||||||
50,347 | Gramercy Capital Corp. REIT(a) | 129,392 | |||||||||
7,152 | Great Southern Bancorp, Inc. | 171,934 | |||||||||
3,520 | Green Dot Corp., Class A(a)(b) | 92,893 | |||||||||
8,853 | Greenhill & Co., Inc. | 343,939 | |||||||||
13,146 | Greenlight Capital Re Ltd., Class A (Cayman Islands)(a) | 327,335 | |||||||||
9,995 | Hallmark Financial Services, Inc.(a) | 75,162 | |||||||||
18,552 | Hancock Holding Co. | 597,003 | |||||||||
23,183 | Hanmi Financial Corp.(a) | 241,799 | |||||||||
6,344 | Harleysville Group, Inc. | 380,259 | |||||||||
36,412 | Healthcare Realty Trust, Inc. REIT | 782,130 | |||||||||
5,590 | Heartland Financial USA, Inc. | 103,527 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
7,456 | Heritage Financial Corp. | $ | 97,674 | ||||||||
78,091 | Hersha Hospitality Trust REIT | 449,023 | |||||||||
6,876 | HFF, Inc., Class A(a) | 112,354 | |||||||||
25,910 | �� | Hilltop Holdings, Inc.(a) | 205,466 | ||||||||
6,157 | Home BancShares, Inc. | 179,415 | |||||||||
33,868 | Horace Mann Educators Corp. | 594,383 | |||||||||
14,573 | Howard Hughes Corp. (The)(a) | 977,994 | |||||||||
6,876 | Hudson Pacific Properties, Inc. REIT | 108,847 | |||||||||
10,932 | Hudson Valley Holding Corp. | 200,384 | |||||||||
11,063 | IBERIABANK Corp.(b) | 564,987 | |||||||||
10,410 | ICG Group, Inc.(a) | 98,687 | |||||||||
10,215 | Independent Bank Corp. | 286,735 | |||||||||
9,140 | Infinity Property & Casualty Corp. | 488,167 | |||||||||
62,121 | Inland Real Estate Corp. REIT | 534,241 | |||||||||
37,142 | International Bancshares Corp. | 732,812 | |||||||||
5,900 | INTL FCStone, Inc.(a) | 126,850 | |||||||||
27,004 | Invesco Mortgage Capital, Inc. REIT(c) | 476,351 | |||||||||
60,139 | Investment Technology Group, Inc.(a) | 613,418 | |||||||||
15,873 | Investors Bancorp, Inc.(a) | 245,079 | |||||||||
60,105 | Investors Real Estate Trust REIT | 433,958 | |||||||||
57,527 | Janus Capital Group, Inc. | 436,055 | |||||||||
3,876 | Kansas City Life Insurance Co.(b) | 126,125 | |||||||||
15,404 | KBW, Inc. | 262,484 | |||||||||
5,849 | Kennedy-Wilson Holdings, Inc. | 82,237 | |||||||||
52,023 | Kite Realty Group Trust REIT | 265,838 | |||||||||
13,417 | Lakeland Bancorp, Inc. | 122,631 | |||||||||
7,427 | Lakeland Financial Corp. | 193,399 | |||||||||
30,517 | LaSalle Hotel Properties REIT | 897,505 | |||||||||
16,580 | LPL Investment Holdings, Inc.(a) | 595,056 | |||||||||
8,785 | LTC Properties, Inc. REIT | 292,365 | |||||||||
50,268 | Maiden Holdings Ltd. (Bermuda) | 417,224 | |||||||||
13,062 | MainSource Financial Group, Inc. | 152,695 | |||||||||
3,294 | MarketAxess Holdings, Inc. | 113,017 | |||||||||
32,961 | MB Financial, Inc. | 681,304 | |||||||||
32,086 | Meadowbrook Insurance Group, Inc. | 283,319 | |||||||||
48,495 | Medical Properties Trust, Inc. REIT | 454,883 | |||||||||
11,514 | Metro Bancorp, Inc.(a) | 133,217 | |||||||||
12,187 | Mid-America Apartment Communities, Inc. REIT | 829,569 | |||||||||
19,788 | Mission West Properties, Inc. REIT | 173,739 | |||||||||
13,134 | Monmouth Real Estate Investment Corp., Class A REIT | 134,755 | |||||||||
71,492 | MPG Office Trust, Inc. REIT(a)(b) | 150,848 | |||||||||
2,815 | National Bankshares, Inc. | 83,634 | |||||||||
33,274 | National Financial Partners Corp.(a) | 490,792 | |||||||||
5,828 | National Health Investors, Inc. REIT | 288,311 | |||||||||
72,293 | National Penn Bancshares, Inc. | 666,541 | |||||||||
1,713 | National Western Life Insurance Co., Class A | 233,071 | |||||||||
9,107 | Navigators Group, Inc. (The)(a) | 432,582 | |||||||||
21,543 | NBT Bancorp, Inc. | 442,709 | |||||||||
12,800 | Nelnet, Inc., Class A | 330,496 |
See Notes to Financial Statements.
40
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
8,485 | Netspend Holdings, Inc.(a) | $ | 64,741 | ||||||||
9,246 | New York Mortgage Trust, Inc. REIT | 63,520 | |||||||||
113,376 | Newcastle Investment Corp. REIT | 801,568 | |||||||||
18,581 | NewStar Financial, Inc.(a) | 220,556 | |||||||||
5,397 | Nicholas Financial, Inc. (Canada) | 71,402 | |||||||||
5,292 | Northfield Bancorp, Inc.(b) | 73,876 | |||||||||
147,085 | NorthStar Realty Finance Corp. REIT | 838,384 | |||||||||
50,886 | Northwest Bancshares, Inc. | 626,916 | |||||||||
8,766 | OceanFirst Financial Corp. | 127,721 | |||||||||
36,295 | Ocwen Financial Corp.(a) | 541,158 | |||||||||
58,986 | Old National Bancorp | 756,201 | |||||||||
34,824 | OMEGA Healthcare Investors, Inc. REIT | 745,582 | |||||||||
5,149 | OmniAmerican Bancorp, Inc.(a) | 103,237 | |||||||||
7,964 | One Liberty Properties, Inc. REIT | 150,599 | |||||||||
22,656 | OneBeacon Insurance Group Ltd., Class A | 322,395 | |||||||||
9,642 | Oppenheimer Holdings, Inc., Class A | 164,493 | |||||||||
30,022 | Oriental Financial Group, Inc. | 354,860 | |||||||||
14,987 | Oritani Financial Corp. | 222,107 | |||||||||
11,850 | Pacific Continental Corp. | 105,347 | |||||||||
21,348 | PacWest Bancorp | 508,509 | |||||||||
10,728 | Park National Corp.(b) | 721,458 | |||||||||
15,321 | Park Sterling Corp.(a) | 72,162 | |||||||||
26,314 | Parkway Properties, Inc. REIT | 260,245 | |||||||||
11,141 | Pebblebrook Hotel Trust REIT | 268,275 | |||||||||
1,887 | Penns Woods Bancorp, Inc. | 74,423 | |||||||||
57,716 | Pennsylvania REIT | 813,218 | |||||||||
10,624 | PennyMac Mortgage Investment Trust REIT | 215,561 | |||||||||
5,729 | Peoples Bancorp, Inc. | 105,356 | |||||||||
125,700 | Phoenix Cos., Inc. (The)(a) | 263,970 | |||||||||
9,835 | PICO Holdings, Inc.(a) | 236,138 | |||||||||
18,353 | Pinnacle Financial Partners, Inc.(a) | 335,860 | |||||||||
18,029 | Piper Jaffray Companies, Inc.(a) | 437,203 | |||||||||
16,281 | Post Properties, Inc. REIT | 792,885 | |||||||||
14,470 | Presidential Life Corp. | 167,563 | |||||||||
31,403 | PrivateBancorp, Inc. | 493,969 | |||||||||
12,752 | Prosperity Bancshares, Inc. | 594,881 | |||||||||
38,613 | Provident Financial Services, Inc. | 567,611 | |||||||||
21,947 | Provident New York Bancorp | 185,233 | |||||||||
6,632 | PS Business Parks, Inc. REIT | 452,634 | |||||||||
103,498 | Radian Group, Inc.(b) | 322,914 | |||||||||
139,229 | RAIT Financial Trust REIT | 673,868 | |||||||||
31,896 | Ramco-Gershenson Properties Trust REIT | 384,028 | |||||||||
18,334 | Renasant Corp. | 293,344 | |||||||||
8,986 | Republic Bancorp, Inc., Class A | 211,441 | |||||||||
66,593 | Resource Capital Corp. REIT | 359,602 | |||||||||
11,369 | Retail Opportunity Investments Corp. REIT(b) | 138,133 | |||||||||
11,325 | RLI Corp. | 780,066 | |||||||||
33,813 | RLJ Lodging Trust REIT | 635,008 | |||||||||
8,013 | Rockville Financial, Inc. | 93,832 | |||||||||
6,241 | Rouse Properties, Inc. REIT(a)(b) | 83,879 | |||||||||
19,213 | S&T Bancorp, Inc. | 359,667 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
7,082 | S.Y. Bancorp, Inc. | $ | 164,302 | ||||||||
48,495 | Sabra Health Care REIT, Inc. | 811,806 | |||||||||
5,562 | Safeguard Scientifics, Inc.(a) | 90,994 | |||||||||
8,384 | Safety Insurance Group, Inc. | 334,102 | |||||||||
14,365 | Sandy Spring Bancorp, Inc. | 258,714 | |||||||||
6,288 | Saul Centers, Inc. REIT | 251,583 | |||||||||
6,726 | SCBT Financial Corp. | 231,307 | |||||||||
19,804 | Seabright Holdings, Inc. | 178,038 | |||||||||
43,753 | Seacoast Banking Corp. of Florida(a) | 70,880 | |||||||||
9,835 | Signature Bank(a) | 646,061 | |||||||||
9,735 | Simmons First National Corp., Class A | 236,950 | |||||||||
9,254 | Southside Bancshares, Inc. | 188,782 | |||||||||
21,325 | Southwest Bancorp, Inc.(a) | 193,844 | |||||||||
11,903 | Sovran Self Storage, Inc. REIT | 627,288 | |||||||||
24,927 | St. Joe Co. (The)(a)(b) | 444,448 | |||||||||
30,521 | Starwood Property Trust, Inc. REIT | 636,973 | |||||||||
10,449 | State Auto Financial Corp. | 149,734 | |||||||||
15,230 | StellarOne Corp. | 190,527 | |||||||||
19,811 | Sterling Bancorp | 188,403 | |||||||||
13,384 | Sterling Financial Corp.(a) | 259,917 | |||||||||
24,827 | Stewart Information Services Corp. | 365,453 | |||||||||
19,335 | Stifel Financial Corp.(a) | 704,181 | |||||||||
72,116 | Strategic Hotels & Resorts, Inc. REIT(a) | 491,110 | |||||||||
11,945 | Suffolk Bancorp(a) | 141,907 | |||||||||
12,417 | Summit Hotel Properties, Inc. REIT | 103,806 | |||||||||
9,329 | Sun Communities, Inc. REIT | 408,144 | |||||||||
87,973 | Sunstone Hotel Investors, Inc. REIT(a) | 897,325 | |||||||||
50,507 | SWS Group, Inc. | 284,859 | |||||||||
18,940 | Tanger Factory Outlet Centers, Inc. REIT | 593,201 | |||||||||
4,445 | Territorial Bancorp, Inc. | 96,545 | |||||||||
10,119 | Texas Capital Bancshares, Inc.(a) | 381,587 | |||||||||
30,325 | TFS Financial Corp.(a) | 298,095 | |||||||||
4,225 | Tompkins Financial Corp. | 159,916 | |||||||||
25,085 | Tower Group, Inc. | 541,334 | |||||||||
17,431 | TowneBank(b) | 226,952 | |||||||||
7,481 | TriCo Bancshares | 122,988 | |||||||||
69,918 | TrustCo Bank Corp. NY | 382,451 | |||||||||
13,613 | Two Harbors Investment Corp. REIT | 142,392 | |||||||||
12,786 | UMB Financial Corp. | 614,367 | |||||||||
7,349 | UMH Properties, Inc. REIT | 86,645 | |||||||||
36,275 | Umpqua Holdings Corp. | 480,281 | |||||||||
13,034 | Union First Market Bankshares Corp. | 181,955 | |||||||||
25,291 | United Bankshares, Inc.(b) | 668,441 | |||||||||
19,636 | United Community Banks, Inc.(a)(b) | 184,775 | |||||||||
6,761 | United Financial Bancorp, Inc. | 108,446 | |||||||||
14,716 | United Fire Group, Inc. | 253,410 | |||||||||
3,120 | Universal Health Realty Income Trust REIT | 126,173 | |||||||||
30,780 | Universal Insurance Holdings, Inc. | 127,429 | |||||||||
10,285 | Univest Corp. of Pennsylvania | 165,588 | |||||||||
9,023 | Urstadt Biddle Properties, Inc., Class A REIT | 173,603 | |||||||||
10,193 | ViewPoint Financial Group | 162,171 |
See Notes to Financial Statements.
41
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
18,270 | Virginia Commerce Bancorp, Inc.(a) | $ | 143,054 | ||||||||
7,577 | Walker & Dunlop, Inc.(a) | 98,880 | |||||||||
11,779 | Walter Investment Management Corp. | 238,289 | |||||||||
6,759 | Washington Banking Co. | 94,220 | |||||||||
6,221 | Washington Trust Bancorp, Inc. | 147,251 | |||||||||
18,046 | WesBanco, Inc. | 369,582 | |||||||||
8,130 | West Bancorporation, Inc. | 78,048 | |||||||||
8,909 | West Coast Bancorp(a) | 174,082 | |||||||||
12,472 | Westamerica Bancorp | 572,091 | |||||||||
40,732 | Western Alliance Bancorp(a) | 357,627 | |||||||||
17,931 | Westfield Financial, Inc. | 133,945 | |||||||||
2,586 | Westwood Holdings Group, Inc. | 95,113 | |||||||||
39,808 | Wilshire Bancorp, Inc.(a) | 213,371 | |||||||||
12,389 | Winthrop Realty Trust REIT | 132,191 | |||||||||
19,178 | Wintrust Financial Corp. | 692,901 | |||||||||
7,629 | World Acceptance Corp.(a) | 507,405 | |||||||||
4,848 | WSFS Financial Corp. | 193,484 | |||||||||
99,985,829 | |||||||||||
Health Care—8.4% | |||||||||||
4,181 | Abaxis, Inc.(a) | 148,927 | |||||||||
3,049 | Accretive Health, Inc.(a)(b) | 30,673 | |||||||||
13,689 | Accuray, Inc.(a) | 105,405 | |||||||||
57,187 | Affymetrix, Inc.(a) | 252,767 | |||||||||
2,979 | Air Methods Corp.(a) | 250,564 | |||||||||
33,924 | Albany Molecular Research, Inc.(a) | 108,218 | |||||||||
4,275 | Alexion Pharmaceuticals, Inc.(a) | 386,118 | |||||||||
9,771 | Align Technology, Inc.(a) | 309,838 | |||||||||
9,248 | Alkermes PLC (Ireland)(a) | 159,990 | |||||||||
30,960 | Allscripts Healthcare Solutions, Inc.(a) | 343,037 | |||||||||
6,402 | Almost Family, Inc.(a) | 156,081 | |||||||||
5,111 | Alnylam Pharmaceuticals, Inc.(a) | 58,214 | |||||||||
5,312 | AMAG Pharmaceuticals, Inc.(a) | 83,186 | |||||||||
59,401 | Amedisys, Inc.(a) | 874,977 | |||||||||
41,552 | AMN Healthcare Services, Inc.(a) | 278,814 | |||||||||
23,674 | AmSurg Corp.(a) | 680,864 | |||||||||
15,445 | Amylin Pharmaceuticals, Inc.(a) | 400,180 | |||||||||
3,996 | Analogic Corp. | 272,567 | |||||||||
15,554 | AngioDynamics, Inc.(a) | 192,559 | |||||||||
8,752 | ArthroCare Corp.(a) | 218,450 | |||||||||
11,620 | Assisted Living Concepts, Inc., Class A | 208,114 | |||||||||
1,579 | athenahealth, Inc.(a) | 114,399 | |||||||||
534 | Atrion Corp. | 123,162 | |||||||||
8,376 | BioMarin Pharmaceutical, Inc.(a) | 290,647 | |||||||||
7,559 | Bio-Rad Laboratories, Inc., Class A(a) | 816,296 | |||||||||
8,524 | Bio-Reference Labs, Inc.(a) | 181,732 | |||||||||
45,120 | BioScrip, Inc.(a) | 334,339 | |||||||||
14,585 | Bruker Corp.(a) | 219,213 | |||||||||
85,956 | Cambrex Corp.(a) | 556,995 | |||||||||
4,679 | Cantel Medical Corp. | 109,863 | |||||||||
7,785 | Capital Senior Living Corp.(a) | 75,437 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
2,076 | Cepheid, Inc.(a) | $ | 79,739 | ||||||||
8,247 | Chemed Corp. | 497,624 | |||||||||
7,884 | Chindex International, Inc.(a) | 77,027 | |||||||||
2,654 | Computer Programs & Systems, Inc. | 158,152 | |||||||||
5,436 | Conceptus, Inc.(a) | 102,034 | |||||||||
15,636 | CONMED Corp. | 447,033 | |||||||||
10,215 | Cooper Cos., Inc. (The) | 900,657 | |||||||||
2,758 | CorVel Corp.(a) | 119,945 | |||||||||
35,051 | Cross Country Healthcare, Inc.(a) | 161,585 | |||||||||
14,353 | CryoLife, Inc.(a) | 75,927 | |||||||||
10,506 | Cubist Pharmaceuticals, Inc.(a) | 444,194 | |||||||||
2,865 | Cyberonics, Inc.(a) | 109,729 | |||||||||
14,502 | Dendreon Corp.(a)(b) | 168,948 | |||||||||
11,315 | Emergent Biosolutions, Inc.(a) | 159,089 | |||||||||
17,265 | Emeritus Corp.(a) | 296,958 | |||||||||
3,301 | Ensign Group, Inc. (The) | 88,170 | |||||||||
22,133 | Enzon Pharmaceuticals, Inc.(a) | 137,889 | |||||||||
19,925 | eResearchTechnology, Inc.(a) | 157,407 | |||||||||
5,011 | Exactech, Inc.(a) | 77,670 | |||||||||
8,981 | ExamWorks Group, Inc.(a) | 104,539 | |||||||||
81,014 | Five Star Quality Care, Inc.(a) | 277,878 | |||||||||
8,542 | Gen-Probe, Inc.(a) | 696,600 | |||||||||
80,923 | Gentiva Health Services, Inc.(a) | 670,042 | |||||||||
13,803 | Greatbatch, Inc.(a) | 321,472 | |||||||||
7,793 | Haemonetics Corp.(a) | 557,745 | |||||||||
14,582 | Hanger Orthopedic Group, Inc.(a) | 343,406 | |||||||||
40,056 | HealthSouth Corp.(a) | 896,854 | |||||||||
57,020 | Healthways, Inc.(a) | 380,323 | |||||||||
2,174 | Hi-Tech Pharmacal Co., Inc.(a) | 70,851 | |||||||||
6,518 | HMS Holdings Corp.(a) | 156,823 | |||||||||
23,507 | Human Genome Sciences, Inc.(a)(b) | 345,788 | |||||||||
3,337 | ICU Medical, Inc.(a) | 175,159 | |||||||||
7,965 | IDEXX Laboratories, Inc.(a) | 700,362 | |||||||||
13,681 | Illumina, Inc.(a) | 609,215 | |||||||||
19,770 | Impax Laboratories, Inc.(a) | 486,935 | |||||||||
10,358 | Integra LifeSciences Holdings Corp.(a) | 385,628 | |||||||||
5,293 | InterMune, Inc.(a) | 55,259 | |||||||||
31,359 | Invacare Corp. | 497,040 | |||||||||
4,297 | IPC The Hospitalist Co., Inc.(a) | 165,048 | |||||||||
10,781 | Isis Pharmaceuticals, Inc.(a) | 86,248 | |||||||||
3,651 | Kensey Nash Corp. | 103,798 | |||||||||
3,570 | Landauer, Inc. | 188,210 | |||||||||
9,883 | LCA-Vision, Inc.(a) | 73,134 | |||||||||
11,877 | LHC Group, Inc.(a) | 210,342 | |||||||||
5,038 | Luminex Corp.(a) | 126,152 | |||||||||
17,951 | Masimo Corp.(a) | 397,256 | |||||||||
15,868 | MedAssets, Inc.(a) | 200,095 | |||||||||
13,899 | Medical Action Industries, Inc.(a) | 76,722 | |||||||||
6,910 | Medicines Co. (The)(a) | 152,642 | |||||||||
13,330 | Medicis Pharmaceutical Corp., Class A | 512,805 | |||||||||
8,515 | Meridian Bioscience, Inc. | 174,983 |
See Notes to Financial Statements.
42
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
14,238 | Merit Medical Systems, Inc.(a) | $ | 188,226 | ||||||||
13,449 | Metropolitan Health Networks, Inc.(a) | 100,599 | |||||||||
23,960 | Molina Healthcare, Inc.(a) | 614,574 | |||||||||
5,149 | Momenta Pharmaceuticals, Inc.(a) | 81,766 | |||||||||
3,711 | MWI Veterinary Supply, Inc.(a) | 350,318 | |||||||||
12,658 | Myriad Genetics, Inc.(a) | 329,235 | |||||||||
5,856 | National Healthcare Corp. | 267,034 | |||||||||
14,435 | Natus Medical, Inc.(a) | 176,684 | |||||||||
3,598 | Neogen Corp.(a) | 140,286 | |||||||||
14,075 | NuVasive, Inc.(a) | 233,223 | |||||||||
5,972 | Obagi Medical Products, Inc.(a) | 78,353 | |||||||||
10,584 | Omnicell, Inc.(a) | 151,034 | |||||||||
6,927 | Onyx Pharmaceuticals, Inc.(a) | 315,248 | |||||||||
7,767 | Orthofix International NV (Curacao)(a) | 320,156 | |||||||||
21,973 | Pacific Biosciences of California, Inc.(a)(b) | 59,327 | |||||||||
13,873 | Par Pharmaceutical Cos., Inc.(a) | 587,383 | |||||||||
22,046 | PAREXEL International Corp.(a) | 593,919 | |||||||||
115,926 | PDL BioPharma, Inc.(b) | 729,175 | |||||||||
50,114 | PharMerica Corp.(a) | 594,853 | |||||||||
13,898 | Providence Service Corp. (The)(a) | 195,406 | |||||||||
30,863 | PSS World Medical, Inc.(a) | 738,552 | |||||||||
18,597 | QLT, Inc. (Canada)(a) | 123,856 | |||||||||
6,547 | Quality Systems, Inc. | 244,858 | |||||||||
2,557 | Questcor Pharmaceuticals, Inc.(a)(b) | 114,809 | |||||||||
7,391 | Quidel Corp.(a)(b) | 122,099 | |||||||||
22,333 | RadNet, Inc.(a) | 69,009 | |||||||||
2,181 | Regeneron Pharmaceuticals, Inc.(a) | 295,002 | |||||||||
23,427 | ResMed, Inc.(a) | 796,752 | |||||||||
24,584 | RTI Biologics, Inc.(a) | 86,044 | |||||||||
3,949 | Salix Pharmaceuticals Ltd.(a) | 195,081 | |||||||||
39,651 | Select Medical Holdings Corp.(a) | 339,809 | |||||||||
32,813 | Sinovac Biotech Ltd. (China)(a) | 70,876 | |||||||||
12,893 | Sirona Dental Systems, Inc.(a) | 651,225 | |||||||||
32,073 | Skilled Healthcare Group, Inc., Class A(a) | 246,000 | |||||||||
82,057 | Sun Healthcare Group, Inc.(a) | 593,272 | |||||||||
79,397 | Sunrise Senior Living, Inc.(a)(b) | 498,613 | |||||||||
8,382 | SurModics, Inc.(a) | 123,970 | |||||||||
24,687 | Symmetry Medical, Inc.(a) | 175,525 | |||||||||
1,776 | Synageva Biopharma Corp.(a) | 67,452 | |||||||||
10,968 | Syneron Medical Ltd. (Israel)(a) | 114,835 | |||||||||
11,665 | Team Health Holdings, Inc.(a) | 251,264 | |||||||||
5,839 | Techne Corp. | 390,863 | |||||||||
9,824 | Thoratec Corp.(a) | 341,973 | |||||||||
19,815 | Triple-S Management Corp., Class B(a) | 417,304 | |||||||||
8,643 | United Therapeutics Corp.(a) | 378,131 | |||||||||
5,942 | US Physical Therapy, Inc. | 144,866 | |||||||||
42,373 | Vanguard Health Systems, Inc.(a) | 376,272 | |||||||||
5,168 | Vertex Pharmaceuticals, Inc.(a) | 198,865 | |||||||||
16,602 | ViroPharma, Inc.(a) | 361,093 | |||||||||
6,304 | Volcano Corp.(a) | 171,154 | |||||||||
15,035 | West Pharmaceutical Services, Inc. | 675,071 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
19,857 | Wright Medical Group, Inc.(a) | $ | 369,936 | ||||||||
2,264 | Young Innovations, Inc. | 76,976 | |||||||||
38,728,963 | |||||||||||
Industrials—17.3% | |||||||||||
15,994 | A.O. Smith Corp. | 761,314 | |||||||||
73,140 | A123 Systems, Inc.(a)(b) | 74,603 | |||||||||
6,025 | AAON, Inc. | 122,910 | |||||||||
26,873 | AAR Corp. | 415,188 | |||||||||
2,423 | Acacia Research Corp.(a) | 99,343 | |||||||||
46,760 | ACCO Brands Corp.(a) | 493,318 | |||||||||
40,774 | Accuride Corp.(a) | 295,612 | |||||||||
16,182 | Aceto Corp. | 145,638 | |||||||||
22,270 | Actuant Corp., Class A | 607,303 | |||||||||
1,858 | Advisory Board Co. (The)(a) | 169,375 | |||||||||
47,440 | Aegean Marine Petroleum Network, Inc. (Greece) | 339,196 | |||||||||
24,566 | Aegion Corp.(a) | 448,330 | |||||||||
4,933 | Aerovironment, Inc.(a) | 119,971 | |||||||||
12,213 | Air Lease Corp.(a)(b) | 287,250 | |||||||||
66,794 | Air Transport Services Group, Inc.(a) | 354,008 | |||||||||
56,870 | Aircastle Ltd. (Bermuda) | 690,970 | |||||||||
5,384 | Alamo Group, Inc. | 181,333 | |||||||||
17,822 | Albany International Corp., Class A | 429,510 | |||||||||
3,915 | Allegiant Travel Co.(a) | 230,045 | |||||||||
13,904 | Altra Holdings, Inc.(a) | 254,165 | |||||||||
6,709 | AMERCO | 673,852 | |||||||||
6,901 | Ameresco, Inc., Class A(a) | 84,123 | |||||||||
3,941 | American Railcar Industries, Inc.(a) | 106,328 | |||||||||
30,190 | American Reprographics Co.(a) | 164,837 | |||||||||
2,564 | American Science & Engineering, Inc. | 167,455 | |||||||||
30,548 | American Superconductor Corp.(a)(b) | 126,163 | |||||||||
6,825 | American Woodmark Corp. | 122,509 | |||||||||
7,108 | Ampco-Pittsburgh Corp. | 132,067 | |||||||||
24,853 | Apogee Enterprises, Inc. | 381,742 | |||||||||
18,713 | Applied Industrial Technologies, Inc. | 735,421 | |||||||||
32,026 | Arkansas Best Corp. | 491,279 | |||||||||
11,689 | Astec Industries, Inc.(a) | 365,749 | |||||||||
2,028 | Astronics Corp.(a) | 64,389 | |||||||||
4,172 | AZZ, Inc. | 215,734 | |||||||||
22,322 | Baltic Trading Ltd. (Marshall Islands) | 103,797 | |||||||||
19,137 | Barnes Group, Inc. | 505,217 | |||||||||
4,265 | Barrett Business Services, Inc. | 84,447 | |||||||||
28,774 | Beacon Roofing Supply, Inc.(a) | 767,978 | |||||||||
17,444 | Belden, Inc. | 606,702 | |||||||||
11,065 | Blount International, Inc.(a) | 178,921 | |||||||||
25,707 | Brady Corp., Class A | 797,688 | |||||||||
104,819 | Broadwind Energy, Inc.(a) | 35,638 | |||||||||
27,450 | Builders FirstSource, Inc.(a) | 114,467 | |||||||||
4,497 | CAI International, Inc.(a) | 92,908 | |||||||||
4,468 | Cascade Corp. | 210,309 |
See Notes to Financial Statements.
43
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
24,647 | Casella Waste Systems, Inc., Class A(a) | $ | 148,621 | ||||||||
45,698 | CBIZ, Inc.(a) | 277,387 | |||||||||
10,795 | CDI Corp. | 191,503 | |||||||||
15,462 | Celadon Group, Inc. | 241,671 | |||||||||
81,265 | Cenveo, Inc.(a) | 232,418 | |||||||||
17,941 | Ceradyne, Inc. | 454,266 | |||||||||
6,469 | Chart Industries, Inc.(a) | 494,426 | |||||||||
24,388 | China Yuchai International Ltd. (Bermuda) | 345,578 | |||||||||
8,662 | CIRCOR International, Inc. | 269,561 | |||||||||
12,096 | CLARCOR, Inc. | 580,850 | |||||||||
11,119 | Clean Harbors, Inc.(a) | 758,761 | |||||||||
17,944 | CNH Global NV (Netherlands)(a) | 821,297 | |||||||||
10,374 | Coleman Cable, Inc.(a) | 88,179 | |||||||||
4,858 | Colfax Corp.(a) | 164,638 | |||||||||
15,304 | Columbus McKinnon Corp.(a) | 226,958 | |||||||||
28,971 | Comfort Systems USA, Inc. | 306,513 | |||||||||
16,581 | Commercial Vehicle Group, Inc.(a) | 176,422 | |||||||||
10,968 | Consolidated Graphics, Inc.(a) | 438,610 | |||||||||
8,971 | Copa Holdings SA, Class A (Panama) | 729,432 | |||||||||
11,575 | Corporate Executive Board Co. (The) | 478,858 | |||||||||
7,418 | Costamare, Inc. (Marshall Islands) | 104,594 | |||||||||
12,079 | Courier Corp. | 124,051 | |||||||||
8,063 | CRA International, Inc.(a) | 164,888 | |||||||||
6,076 | Cubic Corp. | 280,893 | |||||||||
72,233 | Diana Shipping, Inc. (Greece)(a) | 567,751 | |||||||||
21,091 | DigitalGlobe, Inc.(a) | 258,787 | |||||||||
23,362 | Dolan Co. (The)(a) | 187,130 | |||||||||
11,715 | Douglas Dynamics, Inc. | 165,533 | |||||||||
11,552 | Ducommun, Inc.(a) | 136,314 | |||||||||
4,195 | DXP Enterprises, Inc.(a) | 181,937 | |||||||||
24,204 | Dycom Industries, Inc.(a) | 566,132 | |||||||||
4,760 | Dynamic Materials Corp. | 87,013 | |||||||||
130,079 | Eagle Bulk Shipping, Inc.(a)(b) | 213,330 | |||||||||
3,624 | Echo Global Logistics, Inc.(a) | 61,717 | |||||||||
7,663 | Encore Capital Group, Inc.(a) | 181,613 | |||||||||
12,209 | Encore Wire Corp. | 311,207 | |||||||||
134,332 | EnergySolutions, Inc.(a) | 565,538 | |||||||||
9,781 | EnerNOC, Inc.(a) | 58,784 | |||||||||
21,451 | Ennis, Inc. | 338,068 | |||||||||
12,447 | EnPro Industries, Inc.(a) | 515,430 | |||||||||
9,334 | ESCO Technologies, Inc. | 321,090 | |||||||||
113,070 | Excel Maritime Carriers Ltd. (Liberia)(a)(b) | 211,441 | |||||||||
3,257 | Exponent, Inc.(a) | 155,685 | |||||||||
72,715 | Federal Signal Corp.(a) | 375,209 | |||||||||
22,965 | Flow International Corp.(a) | 94,386 | |||||||||
7,713 | Forward Air Corp. | 260,545 | |||||||||
5,570 | Franklin Electric Co., Inc. | 279,336 | |||||||||
8,509 | FreightCar America, Inc. | 183,794 | |||||||||
16,332 | Furmanite Corp.(a) | 102,238 | |||||||||
19,563 | Fushi Copperweld, Inc.(a)(b) | 133,420 | |||||||||
12,153 | G&K Services, Inc., Class A | 399,348 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
117,901 | Genco Shipping & Trading Ltd.(a)(b) | $ | 630,770 | ||||||||
44,064 | GenCorp, Inc.(a)(b) | 302,720 | |||||||||
12,058 | Generac Holdings, Inc.(a) | 290,357 | |||||||||
9,393 | Genesee & Wyoming, Inc., Class A(a) | 506,377 | |||||||||
43,460 | Geo Group, Inc. (The)(a) | 900,057 | |||||||||
16,288 | GeoEye, Inc.(a) | 373,321 | |||||||||
20,957 | Gibraltar Industries, Inc.(a) | 283,339 | |||||||||
9,502 | Global Power Equipment Group, Inc.(a) | 237,645 | |||||||||
6,312 | Gorman-Rupp Co. (The) | 181,786 | |||||||||
7,561 | GP Strategies Corp.(a) | 126,874 | |||||||||
13,319 | Graco, Inc. | 710,036 | |||||||||
35,045 | Great Lakes Dredge & Dock Corp. | 259,683 | |||||||||
13,515 | Greenbrier Cos., Inc.(a) | 233,134 | |||||||||
43,775 | Griffon Corp. | 433,810 | |||||||||
29,451 | H&E Equipment Services, Inc.(a) | 568,404 | |||||||||
89,951 | Hawaiian Holdings, Inc.(a) | 509,123 | |||||||||
18,615 | Healthcare Services Group, Inc. | 395,010 | |||||||||
37,888 | Heartland Express, Inc. | 523,991 | |||||||||
2,736 | HEICO Corp. | 110,326 | |||||||||
5,203 | HEICO Corp., Class A | 167,677 | |||||||||
12,332 | Heidrick & Struggles International, Inc. | 240,474 | |||||||||
29,548 | Herman Miller, Inc. | 577,072 | |||||||||
27,691 | Hexcel Corp.(a) | 758,180 | |||||||||
20,640 | Hill International, Inc.(a) | 73,478 | |||||||||
9,652 | Houston Wire & Cable Co. | 118,623 | |||||||||
17,151 | Hub Group, Inc., Class A(a) | 600,285 | |||||||||
25,281 | Hudson Global, Inc.(a) | 137,529 | |||||||||
4,137 | Hurco Cos., Inc.(a) | 108,927 | |||||||||
9,235 | Huron Consulting Group, Inc.(a) | 325,441 | |||||||||
9,686 | ICF International, Inc.(a) | 241,569 | |||||||||
3,309 | IHS, Inc., Class A(a) | 334,441 | |||||||||
12,253 | II-VI, Inc.(a) | 250,084 | |||||||||
10,314 | InnerWorkings, Inc.(a) | 118,714 | |||||||||
15,433 | Insperity, Inc. | 420,858 | |||||||||
11,616 | Insteel Industries, Inc. | 132,074 | |||||||||
26,645 | Interface, Inc., Class A | 377,293 | |||||||||
26,987 | Interline Brands, Inc.(a) | 567,806 | |||||||||
6,665 | International Shipholding Corp. | 141,031 | |||||||||
8,112 | Intersections, Inc. | 97,587 | |||||||||
7,899 | Jinpan International Ltd. (China) | 68,247 | |||||||||
17,120 | John Bean Technologies Corp. | 273,749 | |||||||||
8,119 | Kadant, Inc.(a) | 210,039 | |||||||||
12,733 | Kaman Corp. | 437,761 | |||||||||
22,754 | KAR Auction Services, Inc.(a) | 418,674 | |||||||||
12,864 | Kaydon Corp. | 315,554 | |||||||||
10,793 | KEYW Holding Corp. (The)(a) | 101,454 | |||||||||
26,223 | Kforce, Inc.(a) | 379,447 | |||||||||
1,066 | KHD Humboldt Wedag International AG (Germany)(a) | 8,259 | |||||||||
19,893 | Kimball International, Inc., Class B | 135,869 | |||||||||
19,458 | Knight Transportation, Inc. | 319,500 |
See Notes to Financial Statements.
44
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
27,154 | Knoll, Inc. | $ | 401,608 | ||||||||
27,978 | Korn/Ferry International(a) | 451,845 | |||||||||
21,269 | Kratos Defense & Security Solutions, Inc.(a) | 118,043 | |||||||||
12,860 | Landstar System, Inc. | 688,910 | |||||||||
20,191 | Layne Christensen Co.(a) | 414,925 | |||||||||
7,984 | LB Foster Co., Class A | 214,051 | |||||||||
2,744 | Lindsay Corp. | 183,272 | |||||||||
4,753 | LMI Aerospace, Inc.(a) | 86,932 | |||||||||
15,504 | LSI Industries, Inc. | 106,202 | |||||||||
14,549 | Lydall, Inc.(a) | 153,492 | |||||||||
11,925 | Manitex International, Inc.(a) | 113,645 | |||||||||
11,507 | Marten Transport Ltd. | 242,452 | |||||||||
29,764 | MasTec, Inc.(a) | 517,596 | |||||||||
11,660 | McGrath Rentcorp | 343,037 | |||||||||
38,256 | Metalico, Inc.(a) | 123,949 | |||||||||
7,844 | Met-Pro Corp. | 78,126 | |||||||||
33,361 | MFC Industrial Ltd. (Canada) | 249,540 | |||||||||
8,730 | Michael Baker Corp.(a) | 196,687 | |||||||||
4,324 | Middleby Corp. (The)(a) | 438,756 | |||||||||
7,261 | Miller Industries, Inc. | 119,080 | |||||||||
12,591 | Mine Safety Appliances Co. | 534,614 | |||||||||
5,206 | Mistras Group, Inc.(a) | 122,185 | |||||||||
21,155 | Mobile Mini, Inc.(a) | 398,983 | |||||||||
9,897 | MSC Industrial Direct Co., Inc., Class A | 729,508 | |||||||||
212,993 | Mueller Water Products, Inc., Class A | 764,645 | |||||||||
5,203 | Multi-Color Corp. | 110,928 | |||||||||
12,580 | MYR Group, Inc.(a) | 210,338 | |||||||||
7,800 | NACCO Industries, Inc., Class A | 885,066 | |||||||||
3,790 | National Presto Industries, Inc.(b) | 279,399 | |||||||||
33,440 | Navigant Consulting, Inc.(a) | 465,485 | |||||||||
90,143 | Navios Maritime Holdings, Inc. (Greece) | 344,346 | |||||||||
36,414 | NCI Building Systems, Inc.(a) | 436,604 | |||||||||
10,939 | NN, Inc.(a) | 86,527 | |||||||||
8,753 | Nordson Corp. | 471,787 | |||||||||
8,236 | Northwest Pipe Co.(a) | 171,391 | |||||||||
18,360 | Old Dominion Freight Line, Inc.(a) | 816,469 | |||||||||
15,869 | On Assignment, Inc.(a) | 296,909 | |||||||||
39,421 | Orbital Sciences Corp.(a) | 495,128 | |||||||||
26,804 | Orion Marine Group, Inc.(a) | 185,484 | |||||||||
63,245 | Pacer International, Inc.(a) | 380,102 | |||||||||
12,204 | Park-Ohio Holdings Corp.(a) | 263,484 | |||||||||
14,330 | Pike Electric Corp.(a) | 117,793 | |||||||||
10,997 | Polypore International, Inc.(a) | 410,738 | |||||||||
3,992 | Portfolio Recovery Associates, Inc.(a) | 274,729 | |||||||||
6,402 | Powell Industries, Inc.(a) | 208,769 | |||||||||
1,120 | Preformed Line Products Co. | 64,658 | |||||||||
5,332 | Primoris Services Corp. | 76,887 | |||||||||
13,191 | Quality Distribution, Inc.(a) | 147,343 | |||||||||
22,445 | Quanex Building Products Corp. | 413,661 | |||||||||
8,048 | RailAmerica, Inc.(a) | 186,553 | |||||||||
3,872 | Raven Industries, Inc. | 233,133 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
5,798 | RBC Bearings, Inc.(a) | $ | 271,810 | ||||||||
26,320 | Resources Connection, Inc. | 341,634 | |||||||||
9,537 | Roadrunner Transportation Systems, Inc.(a) | 165,467 | |||||||||
7,074 | Robbins & Myers, Inc. | 344,575 | |||||||||
13,443 | Rollins, Inc. | 285,664 | |||||||||
21,136 | Rush Enterprises, Inc., Class A(a) | 382,139 | |||||||||
19,327 | Safe Bulkers, Inc. (Marshall Islands) | 132,390 | |||||||||
15,392 | Saia, Inc.(a) | 289,062 | |||||||||
3,721 | Sauer-Danfoss, Inc. | 161,157 | |||||||||
9,365 | Schawk, Inc. | 126,147 | |||||||||
212 | Seaboard Corp.(a) | 421,969 | |||||||||
8,041 | SeaCube Container Leasing Ltd. (Bermuda) | 149,161 | |||||||||
16,920 | Sensata Technologies Holding NV (Netherlands)(a) | 537,379 | |||||||||
13,873 | Simpson Manufacturing Co., Inc. | 430,479 | |||||||||
4,121 | Spirit Airlines, Inc.(a) | 98,986 | |||||||||
10,613 | Standard Parking Corp.(a) | 202,284 | |||||||||
8,672 | Standex International Corp. | 382,088 | |||||||||
93,177 | Star Bulk Carriers Corp. | 93,177 | |||||||||
16,485 | Sterling Construction Co., Inc.(a) | 161,388 | |||||||||
3,074 | Sun Hydraulics Corp. | 76,942 | |||||||||
50,416 | Swift Transportation Co., Class A(a) | 528,864 | |||||||||
26,538 | Sykes Enterprises, Inc.(a) | 420,627 | |||||||||
7,494 | TAL International Group, Inc. | 309,577 | |||||||||
17,722 | Taser International, Inc.(a) | 81,521 | |||||||||
7,504 | Team, Inc.(a) | 222,344 | |||||||||
15,561 | Tecumseh Products Co., Class A(a) | 59,443 | |||||||||
6,651 | Tennant Co. | 294,639 | |||||||||
27,636 | Tetra Tech, Inc.(a) | 737,881 | |||||||||
4,920 | Textainer Group Holdings Ltd.(b) | 172,544 | |||||||||
5,312 | Thermon Group Holdings, Inc.(a) | 118,033 | |||||||||
10,976 | Titan International, Inc.(b) | 317,097 | |||||||||
7,640 | Titan Machinery, Inc.(a) | 272,213 | |||||||||
12,581 | TMS International Corp., Class A(a) | 151,978 | |||||||||
10,579 | Toro Co. (The) | 755,975 | |||||||||
12,650 | Towers Watson & Co., Class A | 827,310 | |||||||||
4,805 | Trex Co., Inc.(a)(b) | 153,760 | |||||||||
17,511 | Trimas Corp.(a) | 385,417 | |||||||||
28,757 | TrueBlue, Inc.(a) | 496,346 | |||||||||
3,732 | Twin Disc, Inc.(b) | 81,843 | |||||||||
6,352 | UniFirst Corp. | 385,948 | |||||||||
14,633 | Universal Forest Products, Inc. | 547,274 | |||||||||
107,033 | US Airways Group, Inc.(a)(b) | 1,098,159 | |||||||||
6,271 | US Ecology, Inc. | 135,955 | |||||||||
5,472 | Valmont Industries, Inc. | 678,145 | |||||||||
17,335 | Verisk Analytics, Inc., Class A(a) | 848,548 | |||||||||
16,937 | Viad Corp. | 306,221 | |||||||||
10,483 | Vicor Corp. | 73,067 | |||||||||
4,395 | VSE Corp. | 96,690 | |||||||||
18,371 | Wabash National Corp.(a) | 153,765 | |||||||||
13,243 | WABCO Holdings, Inc.(a) | 834,706 |
See Notes to Financial Statements.
45
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
9,115 | Wabtec Corp. | $ | 708,965 | ||||||||
11,423 | Watsco, Inc. | 821,885 | |||||||||
13,971 | Watts Water Technologies, Inc., Class A | 514,412 | |||||||||
5,521 | Wesco Aircraft Holdings, Inc.(a) | 87,177 | |||||||||
11,234 | Woodward, Inc. | 467,222 | |||||||||
18,459 | Xerium Technologies, Inc.(a) | 86,757 | |||||||||
80,008,712 | |||||||||||
Information Technology—16.9% | |||||||||||
3,624 | 3D Systems Corp.(a)(b) | 106,872 | |||||||||
6,419 | ACI Worldwide, Inc.(a) | 255,861 | |||||||||
6,164 | Acme Packet, Inc.(a) | 173,023 | |||||||||
14,048 | Actuate Corp.(a) | 99,741 | |||||||||
50,350 | Acxiom Corp.(a) | 691,305 | |||||||||
14,229 | ADTRAN, Inc. | 434,269 | |||||||||
21,609 | Advanced Energy Industries, Inc.(a) | 258,011 | |||||||||
7,250 | Advent Software, Inc.(a) | 195,678 | |||||||||
8,918 | Aeroflex Holding Corp.(a) | 99,882 | |||||||||
20,385 | Agilysys, Inc.(a) | 178,573 | |||||||||
10,513 | Alpha & Omega Semiconductor Ltd. (Bermuda)(a) | 103,974 | |||||||||
10,639 | American Software, Inc., Class A | 88,091 | |||||||||
42,896 | ANADIGICS, Inc.(a) | 94,800 | |||||||||
6,622 | Anaren, Inc.(a) | 119,461 | |||||||||
8,376 | Ancestry.com, Inc.(a)(b) | 223,639 | |||||||||
20,345 | Applied Micro Circuits Corp.(a) | 113,525 | |||||||||
7,615 | Ariba, Inc.(a) | 290,893 | |||||||||
67,353 | Arris Group, Inc.(a) | 870,874 | |||||||||
3,977 | Aruba Networks, Inc.(a) | 83,994 | |||||||||
23,051 | AsiaInfo-Linkage, Inc.(a)(b) | 290,443 | |||||||||
5,089 | Aspen Technology, Inc.(a) | 100,660 | |||||||||
13,602 | ATMI, Inc.(a) | 285,778 | |||||||||
62,082 | Aviat Networks, Inc.(a) | 158,309 | |||||||||
32,494 | Avid Technology, Inc.(a) | 282,373 | |||||||||
35,217 | AVX Corp. | 447,256 | |||||||||
80,323 | Axcelis Technologies, Inc.(a) | 109,239 | |||||||||
5,141 | Badger Meter, Inc. | 189,909 | |||||||||
5,024 | Bankrate, Inc.(a) | 117,662 | |||||||||
6,511 | Bel Fuse, Inc., Class B | 115,831 | |||||||||
18,015 | Black Box Corp. | 407,319 | |||||||||
7,538 | Blackbaud, Inc. | 233,527 | |||||||||
14,621 | Booz Allen Hamilton Holding Corp. | 250,019 | |||||||||
3,865 | Bottomline Technologies, Inc.(a) | 90,943 | |||||||||
23,316 | Brooks Automation, Inc. | 274,196 | |||||||||
9,473 | Cabot Microelectronics Corp. | 325,682 | |||||||||
49,734 | Cadence Design Systems, Inc.(a) | 580,396 | |||||||||
12,849 | Calix, Inc.(a) | 102,278 | |||||||||
76,224 | Canadian Solar, Inc. (China)(a)(b) | 262,973 | |||||||||
8,314 | Cardtronics, Inc.(a) | 219,157 | |||||||||
2,153 | Cass Information Systems, Inc.(b) | 88,165 | |||||||||
3,016 | Cavium, Inc.(a) | 88,248 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
2,748 | CEVA, Inc.(a) | $ | 60,703 | ||||||||
42,940 | Checkpoint Systems, Inc.(a) | 470,622 | |||||||||
15,013 | ChipMOS TECHNOLOGIES Bermuda Ltd. (Bermuda)(a) | 201,174 | |||||||||
82,550 | CIBER, Inc.(a) | 343,408 | |||||||||
16,716 | Ciena Corp.(a) | 247,731 | |||||||||
10,002 | Cirrus Logic, Inc.(a) | 273,855 | |||||||||
6,764 | Cognex Corp. | 272,251 | |||||||||
7,039 | Coherent, Inc.(a) | 370,251 | |||||||||
13,863 | Cohu, Inc. | 152,216 | |||||||||
2,948 | CommVault Systems, Inc.(a) | 153,502 | |||||||||
5,714 | Computer Task Group, Inc.(a) | 82,396 | |||||||||
4,449 | comScore, Inc.(a) | 88,624 | |||||||||
15,529 | Comtech Telecommunications Corp. | 480,157 | |||||||||
76,266 | Comverse Technology, Inc.(a) | 491,916 | |||||||||
5,263 | Concur Technologies, Inc.(a) | 297,675 | |||||||||
3,672 | CoStar Group, Inc.(a) | 267,652 | |||||||||
15,615 | Cray, Inc.(a) | 174,107 | |||||||||
20,939 | CSG Systems International, Inc.(a) | 301,522 | |||||||||
24,777 | CTS Corp. | 265,857 | |||||||||
10,215 | Cymer, Inc.(a) | 529,546 | |||||||||
25,881 | Cypress Semiconductor Corp. | 401,156 | |||||||||
24,477 | Daktronics, Inc. | 199,243 | |||||||||
7,700 | Datalink Corp.(a) | 78,386 | |||||||||
6,683 | DealerTrack Holdings, Inc.(a) | 199,354 | |||||||||
12,749 | Dice Holdings, Inc.(a) | 137,434 | |||||||||
13,121 | Digi International, Inc.(a) | 121,763 | |||||||||
23,479 | Digital River, Inc.(a) | 441,640 | |||||||||
12,208 | Diodes, Inc.(a) | 272,116 | |||||||||
12,428 | Dolby Laboratories, Inc., Class A(a) | 487,550 | |||||||||
24,678 | DSP Group, Inc.(a) | 161,394 | |||||||||
3,370 | DTS, Inc.(a) | 105,144 | |||||||||
8,524 | Dynamics Research Corp.(a) | 61,288 | |||||||||
91,346 | EarthLink, Inc. | 741,730 | |||||||||
4,332 | Ebix, Inc.(b) | 88,589 | |||||||||
25,421 | EchoStar Corp., Class A(a) | 738,480 | |||||||||
9,574 | Electro Rent Corp. | 149,163 | |||||||||
12,925 | Electro Scientific Industries, Inc. | 184,311 | |||||||||
21,375 | Electronics for Imaging, Inc.(a) | 381,544 | |||||||||
17,723 | EMCORE Corp.(a)(b) | 80,108 | |||||||||
39,173 | Emulex Corp.(a) | 340,022 | |||||||||
43,354 | Entegris, Inc.(a) | 383,683 | |||||||||
18,245 | Entropic Communications, Inc.(a) | 77,176 | |||||||||
15,783 | EPIQ Systems, Inc. | 179,295 | |||||||||
3,530 | ePlus, Inc.(a) | 104,700 | |||||||||
27,983 | Euronet Worldwide, Inc.(a) | 605,272 | |||||||||
14,854 | Exar Corp.(a) | 117,644 | |||||||||
4,691 | ExlService Holdings, Inc.(a) | 129,847 | |||||||||
36,245 | Extreme Networks, Inc.(a) | 138,818 | |||||||||
5,415 | F5 Networks, Inc.(a) | 725,231 | |||||||||
8,733 | Fabrinet (Cayman Islands)(a) | 146,889 |
See Notes to Financial Statements.
46
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
6,841 | FactSet Research Systems, Inc. | $ | 717,347 | ||||||||
11,013 | Fair Isaac Corp. | 472,458 | |||||||||
54,572 | Fairchild Semiconductor International, Inc.(a) | 773,285 | |||||||||
2,343 | FARO Technologies, Inc.(a) | 131,161 | |||||||||
9,468 | FEI Co.(a) | 475,010 | |||||||||
21,486 | Finisar Corp.(a) | 354,949 | |||||||||
5,740 | FleetCor Technologies, Inc.(a) | 227,017 | |||||||||
37,885 | FormFactor, Inc.(a) | 212,156 | |||||||||
5,231 | Forrester Research, Inc. | 185,439 | |||||||||
4,318 | Fortinet, Inc.(a) | 112,786 | |||||||||
24,753 | Freescale Semiconductor Ltd. (Bermuda)(a)(b) | 307,185 | |||||||||
13,681 | Gartner, Inc.(a) | 599,228 | |||||||||
45,888 | Genpact Ltd.(a) | 765,412 | |||||||||
40,490 | Global Cash Access Holdings, Inc.(a) | 342,141 | |||||||||
7,574 | Globecomm Systems, Inc.(a) | 107,399 | |||||||||
15,177 | GSI Group, Inc. (Canada)(a) | 183,186 | |||||||||
42,750 | GT Advanced Technologies, Inc.(a)(b) | 278,303 | |||||||||
17,629 | Hackett Group, Inc. (The)(a) | 100,662 | |||||||||
47,163 | Harmonic, Inc.(a) | 222,609 | |||||||||
15,643 | Heartland Payment Systems, Inc. | 476,642 | |||||||||
3,642 | Hittite Microwave Corp.(a) | 194,993 | |||||||||
43,284 | Hutchinson Technology, Inc.(a)(b) | 89,165 | |||||||||
4,741 | iGATE Corp.(a) | 92,260 | |||||||||
45,576 | Imation Corp.(a) | 264,341 | |||||||||
25,515 | Infinera Corp.(a)(b) | 182,687 | |||||||||
4,641 | Informatica Corp.(a) | 213,579 | |||||||||
12,162 | InfoSpace, Inc.(a) | 135,363 | |||||||||
70,768 | Integrated Device Technology, Inc.(a) | 479,099 | |||||||||
8,240 | InterDigital, Inc.(b) | 228,413 | |||||||||
50,188 | Intermec, Inc.(a) | 267,000 | |||||||||
19,556 | Internap Network Services Corp.(a) | 137,674 | |||||||||
32,237 | International Rectifier Corp.(a) | 703,734 | |||||||||
6,673 | InterXion Holding NV (Netherlands)(a) | 133,927 | |||||||||
16,526 | Intevac, Inc.(a) | 133,200 | |||||||||
23,558 | IntraLinks Holdings, Inc.(a) | 109,780 | |||||||||
3,302 | IPG Photonics Corp.(a) | 159,817 | |||||||||
4,861 | Ixia(a) | 61,249 | |||||||||
8,945 | IXYS Corp.(a) | 111,455 | |||||||||
11,203 | j2 Global, Inc. | 289,373 | |||||||||
20,291 | Jack Henry & Associates, Inc. | 689,082 | |||||||||
16,723 | JDA Software Group, Inc.(a) | 482,960 | |||||||||
52,522 | JDS Uniphase Corp.(a) | 638,142 | |||||||||
45,099 | Kemet Corp.(a) | 383,792 | |||||||||
4,215 | Kenexa Corp.(a) | 137,704 | |||||||||
8,792 | KIT Digital, Inc.(a)(b) | 59,610 | |||||||||
23,235 | Kopin Corp.(a) | 82,949 | |||||||||
23,686 | Kulicke & Soffa Industries, Inc.(a) | 310,287 | |||||||||
27,915 | Lattice Semiconductor Corp.(a) | 152,416 | |||||||||
21,993 | Limelight Networks, Inc.(a) | 60,261 | |||||||||
53,343 | Lionbridge Technologies, Inc.(a) | 146,693 | |||||||||
1,973 | Liquidity Services, Inc.(a) | 105,220 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
5,200 | Littelfuse, Inc. | $ | 325,884 | ||||||||
4,155 | Loral Space & Communications, Inc. | 257,818 | |||||||||
15,469 | LTX-Credence Corp.(a) | 106,736 | |||||||||
22,117 | Magnachip Semiconductor Corp.(a) | 260,538 | |||||||||
4,125 | Manhattan Associates, Inc.(a) | 206,869 | |||||||||
18,121 | ManTech International Corp., Class A | 569,362 | |||||||||
8,202 | MAXIMUS, Inc. | 362,938 | |||||||||
5,000 | Measurement Specialties, Inc.(a) | 178,650 | |||||||||
37,754 | Mentor Graphics Corp.(a) | 545,545 | |||||||||
1,098 | MercadoLibre, Inc. (Argentina) | 106,221 | |||||||||
7,967 | Mercury Computer Systems, Inc.(a) | 105,164 | |||||||||
26,763 | Methode Electronics, Inc. | 226,147 | |||||||||
14,646 | Micrel, Inc. | 159,495 | |||||||||
12,540 | MICROS Systems, Inc.(a) | 712,648 | |||||||||
21,836 | Microsemi Corp.(a) | 469,911 | |||||||||
1,369 | MicroStrategy, Inc., Class A(a) | 191,359 | |||||||||
19,487 | MKS Instruments, Inc. | 538,816 | |||||||||
51,853 | ModusLink Global Solutions, Inc.(a) | 256,672 | |||||||||
4,316 | MoneyGram International, Inc.(a) | 72,681 | |||||||||
8,664 | Monolithic Power Systems, Inc.(a) | 179,518 | |||||||||
7,451 | Monotype Imaging Holdings, Inc.(a) | 105,730 | |||||||||
10,781 | Move, Inc.(a) | 93,795 | |||||||||
4,526 | MTS Systems Corp. | 217,112 | |||||||||
5,607 | Multi-Fineline Electronix, Inc.(a) | 148,529 | |||||||||
19,055 | Nam Tai Electronics, Inc. (Hong Kong) | 94,894 | |||||||||
3,853 | Nanometrics, Inc.(a) | 59,760 | |||||||||
18,124 | National Instruments Corp. | 492,973 | |||||||||
11,934 | NCI, Inc., Class A(a) | 59,193 | |||||||||
27,082 | Net 1 UEPS Technologies, Inc.(a) | 238,322 | |||||||||
11,106 | NETGEAR, Inc.(a) | 427,581 | |||||||||
9,935 | NetScout Systems, Inc.(a) | 205,555 | |||||||||
14,658 | NeuStar, Inc., Class A(a) | 532,818 | |||||||||
15,190 | Newport Corp.(a) | 259,293 | |||||||||
8,996 | NIC, Inc. | 100,665 | |||||||||
44,289 | Novatel Wireless, Inc.(a) | 127,995 | |||||||||
31,559 | Oclaro, Inc.(a)(b) | 90,574 | |||||||||
28,962 | OmniVision Technologies, Inc.(a) | 533,480 | |||||||||
75,551 | Openwave Systems, Inc.(a) | 194,922 | |||||||||
6,763 | Oplink Communications, Inc.(a) | 107,126 | |||||||||
2,696 | OPNET Technologies, Inc. | 62,439 | |||||||||
105,704 | Opnext, Inc.(a) | 125,788 | |||||||||
15,505 | Orbotech Ltd. (Israel)(a) | 169,315 | |||||||||
4,545 | OSI Systems, Inc.(a) | 303,879 | |||||||||
24,085 | Parametric Technology Corp.(a) | 519,754 | |||||||||
10,196 | Park Electrochemical Corp. | 294,155 | |||||||||
17,097 | PC Connection, Inc. | 137,118 | |||||||||
10,975 | Perficient, Inc.(a) | 131,810 | |||||||||
15,680 | Pericom Semiconductor Corp.(a) | 123,245 | |||||||||
56,047 | Photronics, Inc.(a) | 346,931 | |||||||||
12,026 | Plantronics, Inc. | 460,836 | |||||||||
21,514 | Plexus Corp.(a) | 696,408 |
See Notes to Financial Statements.
47
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
83,945 | PMC - Sierra, Inc.(a) | $ | 593,491 | ||||||||
38,716 | Polycom, Inc.(a) | 513,761 | |||||||||
4,733 | Power Integrations, Inc. | 179,286 | |||||||||
70,616 | Power-One, Inc.(a) | 302,236 | |||||||||
137,522 | Powerwave Technologies, Inc.(a)(b) | 155,400 | |||||||||
16,433 | PRGX Global, Inc.(a) | 103,857 | |||||||||
20,488 | Progress Software Corp.(a) | 474,092 | |||||||||
27,900 | Pulse Electronics Corp. | 57,195 | |||||||||
3,769 | QLIK Technologies, Inc.(a) | 108,585 | |||||||||
33,410 | QLogic Corp.(a) | 576,323 | |||||||||
109,473 | Quantum Corp.(a) | 260,546 | |||||||||
24,779 | Quest Software, Inc.(a) | 576,607 | |||||||||
14,765 | QuinStreet, Inc.(a) | 155,180 | |||||||||
8,459 | Rackspace Hosting, Inc.(a) | 491,383 | |||||||||
17,241 | RadiSys Corp.(a) | 109,480 | |||||||||
2,493 | RADWARE Ltd. (Israel)(a) | 95,931 | |||||||||
26,556 | Rambus, Inc.(a) | 135,170 | |||||||||
6,077 | RealD, Inc.(a) | 73,410 | |||||||||
18,085 | RealNetworks, Inc. | 173,073 | |||||||||
11,203 | Red Hat, Inc.(a) | 667,811 | |||||||||
121,909 | RF Micro Devices, Inc.(a) | 527,866 | |||||||||
9,271 | Richardson Electronics Ltd. | 116,907 | |||||||||
7,682 | Rimage Corp. | 69,829 | |||||||||
9,709 | Riverbed Technology, Inc.(a) | 191,559 | |||||||||
14,146 | Rofin-Sinar Technologies, Inc.(a) | 356,479 | |||||||||
6,564 | Rogers Corp.(a) | 251,336 | |||||||||
10,587 | Rosetta Stone, Inc.(a) | 110,740 | |||||||||
22,973 | Rovi Corp.(a) | 657,028 | |||||||||
11,157 | Rudolph Technologies, Inc.(a) | 120,496 | |||||||||
4,517 | Salesforce.com, Inc.(a) | 703,432 | |||||||||
22,976 | Sapient Corp. | 275,023 | |||||||||
19,050 | ScanSource, Inc.(a) | 627,888 | |||||||||
18,483 | SeaChange International, Inc.(a) | 151,930 | |||||||||
11,032 | Semtech Corp.(a) | 300,732 | |||||||||
37,764 | Sigma Designs, Inc.(a) | 208,080 | |||||||||
11,597 | Silicon Graphics International Corp.(a)(b) | 109,476 | |||||||||
27,450 | Silicon Image, Inc.(a) | 164,700 | |||||||||
6,350 | Silicon Laboratories, Inc.(a) | 225,362 | |||||||||
7,947 | SINA Corp. (China)(a)(b) | 464,979 | |||||||||
29,413 | Skyworks Solutions, Inc.(a) | 798,269 | |||||||||
28,172 | Smart Technologies, Inc., Class A (Canada)(a) | 71,275 | |||||||||
44,660 | Smith Micro Software, Inc.(a) | 89,767 | |||||||||
8,229 | Sohu.com, Inc.(a)(b) | 424,370 | |||||||||
1,813 | SolarWinds, Inc.(a) | 85,048 | |||||||||
8,050 | Solera Holdings, Inc. | 361,767 | |||||||||
68,535 | Sonus Networks, Inc.(a) | 193,954 | |||||||||
50,590 | Spansion, Inc., Class A(a) | 610,115 | |||||||||
9,230 | SS&C Technologies Holdings, Inc.(a) | 219,397 | |||||||||
10,160 | Standard Microsystems Corp.(a) | 269,037 | |||||||||
22,265 | STEC, Inc.(a)(b) | 184,577 | |||||||||
28,941 | STR Holdings, Inc.(a)(b) | 110,555 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
2,831 | Stratasys, Inc.(a) | $ | 144,976 | ||||||||
54,349 | SunPower Corp.(a) | 304,898 | |||||||||
10,404 | Super Micro Computer, Inc.(a) | 183,631 | |||||||||
5,714 | Supertex, Inc.(a) | 116,966 | |||||||||
9,418 | Sycamore Networks, Inc.(a) | 146,827 | |||||||||
22,751 | Symmetricom, Inc.(a) | 126,496 | |||||||||
6,548 | Synaptics, Inc.(a) | 201,089 | |||||||||
3,475 | Synchronoss Technologies, Inc.(a) | 108,767 | |||||||||
15,844 | SYNNEX Corp.(a) | 603,498 | |||||||||
3,587 | Syntel, Inc. | 214,825 | |||||||||
38,803 | Take-Two Interactive Software, Inc.(a) | 547,122 | |||||||||
54,408 | TeleCommunication Systems, Inc., Class A(a) | 105,007 | |||||||||
31,381 | TeleTech Holdings, Inc.(a) | 475,422 | |||||||||
5,208 | Tessco Technologies, Inc. | 104,160 | |||||||||
26,216 | Tessera Technologies, Inc.(a) | 410,018 | |||||||||
86,609 | THQ, Inc.(a)(b) | 58,669 | |||||||||
19,796 | TIBCO Software, Inc.(a) | 651,288 | |||||||||
9,695 | TiVo, Inc.(a) | 104,609 | |||||||||
16,336 | TNS, Inc.(a) | 333,254 | |||||||||
79,438 | TriQuint Semiconductor, Inc.(a) | 387,657 | |||||||||
33,702 | TTM Technologies, Inc.(a) | 348,142 | |||||||||
3,931 | Tyler Technologies, Inc.(a) | 157,043 | |||||||||
1,114 | Ultimate Software Group, Inc. (The)(a) | 85,956 | |||||||||
14,335 | Ultra Clean Holdings, Inc.(a) | 98,195 | |||||||||
99,522 | United Online, Inc. | 471,734 | |||||||||
84,759 | UTStarcom Holdings Corp. (Cayman Islands)(a) | 111,034 | |||||||||
20,214 | ValueClick, Inc.(a) | 428,133 | |||||||||
7,680 | VASCO Data Security International, Inc.(a) | 59,827 | |||||||||
17,631 | Veeco Instruments, Inc.(a)(b) | 532,280 | |||||||||
8,260 | VeriFone Systems, Inc.(a) | 393,506 | |||||||||
6,288 | Verint Systems, Inc.(a) | 190,149 | |||||||||
16,848 | VeriSign, Inc. | 692,621 | |||||||||
11,699 | ViaSat, Inc.(a) | 565,062 | |||||||||
6,294 | Virtusa Corp.(a) | 94,976 | |||||||||
8,053 | Vishay Precision Group, Inc.(a) | 116,607 | |||||||||
7,495 | VistaPrint NV (Netherlands)(a)(b) | 279,489 | |||||||||
4,968 | VMware, Inc., Class A(a) | 555,025 | |||||||||
2,787 | Volterra Semiconductor Corp.(a) | 91,664 | |||||||||
15,027 | WebMD Health Corp.(a) | 341,864 | |||||||||
8,632 | Websense, Inc.(a) | 179,028 | |||||||||
37,599 | Westell Technologies, Inc., Class A(a) | 85,726 | |||||||||
7,747 | Wright Express Corp.(a) | 494,414 | |||||||||
12,344 | XO Group, Inc.(a) | 114,429 | |||||||||
25,587 | Xyratex Ltd. (Bermuda) | 371,523 | |||||||||
4,759 | Yandex NV, Class A (Netherlands)(a) | 112,883 | |||||||||
17,026 | Zebra Technologies Corp., Class A(a) | 660,439 | |||||||||
3,830 | Zygo Corp.(a) | 75,796 | |||||||||
78,474,045 |
See Notes to Financial Statements.
48
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
Materials—5.9% | |||||||||||
23,078 | A. Schulman, Inc. | $ | 567,950 | ||||||||
22,705 | A.M. Castle & Co.(a)(b) | 304,020 | |||||||||
5,458 | AEP Industries, Inc.(a) | 190,320 | |||||||||
5,188 | Allied Nevada Gold Corp.(a) | 151,956 | |||||||||
11,347 | AMCOL International Corp. | 373,997 | |||||||||
5,529 | American Vanguard Corp. | 138,225 | |||||||||
5,122 | Balchem Corp. | 148,026 | |||||||||
87,237 | Boise, Inc. | 666,491 | |||||||||
13,954 | Buckeye Technologies, Inc. | 452,249 | |||||||||
18,099 | Calgon Carbon Corp.(a) | 250,490 | |||||||||
16,110 | Carpenter Technology Corp. | 896,683 | |||||||||
80,128 | Century Aluminum Co.(a) | 737,178 | |||||||||
19,377 | China Gerui Advanced Materials Group Ltd. (British Virgin Islands)(a) | 55,224 | |||||||||
17,511 | Clearwater Paper Corp.(a) | 577,338 | |||||||||
10,823 | Compass Minerals International, Inc. | 828,176 | |||||||||
1,984 | Deltic Timber Corp. | 121,183 | |||||||||
17,201 | Eagle Materials, Inc. | 605,819 | |||||||||
136,291 | Ferro Corp.(a) | 707,350 | |||||||||
5,909 | Flotek Industries, Inc.(a) | 80,599 | |||||||||
24,424 | Georgia Gulf Corp.(a) | 865,831 | |||||||||
15,942 | Globe Specialty Metals, Inc. | 212,666 | |||||||||
89,184 | Graphic Packaging Holding Co.(a) | 477,134 | |||||||||
36,778 | Gulf Resources, Inc.(a)(b) | 80,176 | |||||||||
20,813 | H.B. Fuller Co. | 684,748 | |||||||||
3,654 | Hawkins, Inc. | 126,903 | |||||||||
3,524 | Haynes International, Inc. | 219,792 | |||||||||
126,814 | Headwaters, Inc.(a) | 550,373 | |||||||||
98,598 | Hecla Mining Co.(b) | 421,999 | |||||||||
26,854 | Horsehead Holding Corp.(a) | 301,570 | |||||||||
6,521 | Innophos Holdings, Inc. | 320,638 | |||||||||
8,651 | Innospec, Inc.(a) | 261,520 | |||||||||
13,149 | Intrepid Potash, Inc.(a) | 326,753 | |||||||||
9,087 | Kaiser Aluminum Corp. | 477,704 | |||||||||
13,994 | KapStone Paper and Packaging Corp.(a) | 252,732 | |||||||||
12,195 | Koppers Holdings, Inc. | 474,142 | |||||||||
19,690 | Kraton Performance Polymers, Inc.(a) | 511,940 | |||||||||
6,366 | Kronos Worldwide, Inc. | 151,129 | |||||||||
18,658 | Landec Corp.(a) | 120,157 | |||||||||
92,092 | Louisiana-Pacific Corp.(a) | 833,433 | |||||||||
5,080 | LSB Industries, Inc.(a) | 172,314 | |||||||||
8,341 | Material Sciences Corp.(a) | 63,725 | |||||||||
14,441 | Materion Corp.(a) | 356,837 | |||||||||
45,877 | Mercer International, Inc.(a) | 314,716 | |||||||||
17,163 | Metals USA Holdings Corp.(a) | 258,818 | |||||||||
8,498 | Minerals Technologies, Inc. | 570,216 | |||||||||
4,707 | Molycorp, Inc.(a)(b) | 127,371 | |||||||||
17,944 | Myers Industries, Inc. | 296,614 | |||||||||
9,328 | Neenah Paper, Inc. | 266,408 | |||||||||
3,660 | NewMarket Corp. | 816,985 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
18,900 | Noranda Aluminum Holding Corp. | $ | 200,718 | ||||||||
11,524 | Olympic Steel, Inc. | 243,502 | |||||||||
50,145 | Omnova Solutions, Inc.(a) | 393,137 | |||||||||
36,782 | P.H. Glatfelter Co. | 573,063 | |||||||||
5,613 | Quaker Chemical Corp. | 243,604 | |||||||||
6,119 | Royal Gold, Inc. | 379,133 | |||||||||
20,929 | RTI International Metals, Inc.(a) | 513,807 | |||||||||
16,691 | Schnitzer Steel Industries, Inc., Class A | 665,470 | |||||||||
5,988 | Schweitzer-Mauduit International, Inc. | 406,106 | |||||||||
25,591 | Spartech Corp.(a) | 124,884 | |||||||||
5,286 | Stepan Co. | 480,286 | |||||||||
31,042 | Stillwater Mining Co.(a) | 333,081 | |||||||||
44,473 | SunCoke Energy, Inc.(a)(b) | 676,879 | |||||||||
13,460 | Texas Industries, Inc.(b) | 452,391 | |||||||||
28,264 | Titanium Metals Corp. | 417,459 | |||||||||
15,869 | TPC Group, Inc.(a) | 666,181 | |||||||||
12,125 | Tredegar Corp. | 210,369 | |||||||||
3,818 | Universal Stainless & Alloy Products, Inc.(a) | 177,155 | |||||||||
44,387 | Wausau Paper Corp. | 402,146 | |||||||||
6,167 | Westlake Chemical Corp. | 394,380 | |||||||||
36,814 | Yongye International, Inc.(a)(b) | 118,173 | |||||||||
11,477 | Zep, Inc. | 163,547 | |||||||||
12,914 | Zoltek Cos., Inc.(a)(b) | 142,441 | |||||||||
27,146,530 | |||||||||||
Telecommunication Services—1.4% | |||||||||||
6,608 | AboveNet, Inc.(a) | 549,587 | |||||||||
130,060 | Alaska Communications Systems Group, Inc.(b) | 332,954 | |||||||||
5,573 | Atlantic Tele-Network, Inc. | 189,816 | |||||||||
25,234 | Cbeyond, Inc.(a) | 162,255 | |||||||||
85,954 | Clearwire Corp., Class A(a) | 125,923 | |||||||||
8,346 | Cogent Communications Group, Inc.(a) | 156,320 | |||||||||
20,056 | Consolidated Communications Holdings, Inc.(b) | 388,084 | |||||||||
33,876 | Fairpoint Communications, Inc.(a)(b) | 156,846 | |||||||||
27,796 | General Communication, Inc., Class A(a) | 211,250 | |||||||||
8,902 | HickoryTech Corp. | 88,397 | |||||||||
45,852 | IDT Corp., Class B | 386,074 | |||||||||
29,991 | Iridium Communications, Inc.(a)(b) | 263,621 | |||||||||
68,184 | Leap Wireless International, Inc.(a)(b) | 382,512 | |||||||||
16,279 | Neutral Tandem, Inc.(a) | 189,162 | |||||||||
16,695 | NTELOS Holdings Corp. | 337,573 | |||||||||
37,402 | Premiere Global Services, Inc.(a) | 334,748 | |||||||||
5,341 | Primus Telecommunications Group, Inc.(a) | 92,933 | |||||||||
11,385 | SBA Communications Corp., Class A(a) | 611,830 | |||||||||
16,143 | Shenandoah Telecommunications Co. | 179,994 | |||||||||
7,375 | SureWest Communications | 166,527 | |||||||||
13,778 | United States Cellular Corp.(a) | 540,373 | |||||||||
37,509 | USA Mobility, Inc. | 484,616 | |||||||||
55,949 | Vonage Holdings Corp.(a) | 114,136 | |||||||||
6,445,531 |
See Notes to Financial Statements.
49
Schedule of Investments (Continued)
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
Utilities—1.6% | |||||||||||
9,627 | American States Water Co. | $ | 350,808 | ||||||||
22,695 | California Water Service Group | 411,007 | |||||||||
6,431 | Central Vermont Public Service Corp. | 226,693 | |||||||||
9,582 | CH Energy Group, Inc. | 628,771 | |||||||||
5,078 | Chesapeake Utilities Corp. | 213,378 | |||||||||
3,719 | Connecticut Water Service, Inc. | 103,202 | |||||||||
9,695 | Consolidated Water Co. Ltd. (Cayman Islands) | 69,513 | |||||||||
23,778 | El Paso Electric Co. | 728,558 | |||||||||
33,692 | Empire District Electric Co. (The) | 691,360 | |||||||||
16,471 | Laclede Group, Inc. (The) | 648,628 | |||||||||
12,516 | MGE Energy, Inc. | 572,482 | |||||||||
8,334 | Middlesex Water Co. | 154,679 | |||||||||
17,762 | Northwest Natural Gas Co. | 811,723 | |||||||||
9,021 | Ormat Technologies, Inc. | 178,345 | |||||||||
34,444 | Otter Tail Corp. | 756,390 | |||||||||
7,702 | SJW Corp. | 185,618 | |||||||||
13,052 | South Jersey Industries, Inc. | 642,811 | |||||||||
6,192 | Unitil Corp. | 163,840 | |||||||||
5,000 | York Water Co. | 87,350 | |||||||||
7,625,156 | |||||||||||
Total Common Stocks and Other Equity Interests (Cost $459,181,317) | 463,587,009 | ||||||||||
Warrants—0.0% | |||||||||||
Energy—0.0% | |||||||||||
1,014 | Magnum Hunter Resources Corp., expiring 10/14/13(a)(b) (Cost $0) | 0 | |||||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan)—100.0% (Cost $459,181,317) | 463,587,009 | ||||||||||
Investments Purchased with Cash Collateral from Securities on Loan Money Market Fund—6.5% | |||||||||||
30,134,649 | Invesco Liquid Assets Portfolio - Institutional Class (Cost $30,134,649)(d)(e) | 30,134,649 | |||||||||
Total Investments (Cost $489,315,966)—106.5% | 493,721,658 | ||||||||||
Liabilities in excess of other assets—(6.5)% | (30,077,121 | ) | |||||||||
Net Assets—100.0% | $ | 463,644,537 |
Investment Abbreviations:
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) All or a portion of this security was out on loan at April 30, 2012.
(c) Affiliated company. The Fund's Adviser is a subsidiary of Invesco Ltd. and therefore, Invesco Mortgage Capital, Inc. REIT is considered to be affiliated with the Fund. See Note 4.
(d) The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower's return of the securities loaned. See Note 2H.
(e) The security and the Fund are advised by wholly owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.
See Notes to Financial Statements.
50
Statements of Assets and Liabilities
April 30, 2012
PowerShares Dynamic MagniQuant Portfolio (PIQ) | PowerShares Dynamic Market Portfolio (PWC) | PowerShares Dynamic OTC Portfolio (PWO) | PowerShares FTSE RAFI US 1000 Portfolio (PRF) | PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) | |||||||||||||||||||
ASSETS: | |||||||||||||||||||||||
Unaffiliated investments, at value(a) | $ | 18,487,626 | $ | 128,652,948 | $ | 28,301,733 | $ | 1,388,141,882 | $ | 463,110,658 | |||||||||||||
Affiliated investments, at value (Note 4) | — | — | — | 500,526 | 476,351 | ||||||||||||||||||
Investment of securities lending collateral in affiliated money market fund, at value (Note 2H) | — | — | — | 17,589,874 | 30,134,649 | ||||||||||||||||||
Total investments, at value | 18,487,626 | 128,652,948 | 28,301,733 | 1,406,232,282 | 493,721,658 | ||||||||||||||||||
Cash | 91,325 | 138,320 | — | 15,254 | 303,584 | ||||||||||||||||||
Foreign currencies, at value | — | — | — | — | 18,308 | ||||||||||||||||||
Receivables: | |||||||||||||||||||||||
Investments sold | 21,693 | 2,351,241 | — | 83,478 | 463,060 | ||||||||||||||||||
Expense waivers | 8,575 | 6,142 | 8,446 | 44,122 | 11,012 | ||||||||||||||||||
Dividends | 7,062 | 69,063 | 23,867 | 1,553,589 | 167,902 | ||||||||||||||||||
Affiliated securities lending dividends | — | — | — | 44,875 | 68,152 | ||||||||||||||||||
Shares sold | — | — | — | 5,972,736 | — | ||||||||||||||||||
Total Assets | 18,616,281 | 131,217,714 | 28,334,046 | 1,413,946,336 | 494,753,676 | ||||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||
Due to custodian | — | — | 1,065 | — | — | ||||||||||||||||||
Payables: | |||||||||||||||||||||||
Investments purchased | 20,885 | — | — | 6,379,480 | 534,977 | ||||||||||||||||||
Shares repurchased | — | 2,355,400 | — | — | — | ||||||||||||||||||
Collateral upon return of securities loaned | — | — | — | 17,589,874 | 30,134,649 | ||||||||||||||||||
Accrued advisory fees | 7,548 | 53,395 | 11,424 | 326,156 | 109,072 | ||||||||||||||||||
Accrued expenses | 103,961 | 165,320 | 98,024 | 989,615 | 330,441 | ||||||||||||||||||
Total Liabilities | 132,394 | 2,574,115 | 110,513 | 25,285,125 | 31,109,139 | ||||||||||||||||||
NET ASSETS | $ | 18,483,887 | $ | 128,643,599 | $ | 28,223,533 | $ | 1,388,661,211 | $ | 463,644,537 | |||||||||||||
NET ASSETS CONSIST OF: | |||||||||||||||||||||||
Shares of beneficial interest | $ | 47,466,735 | $ | 488,810,246 | $ | 110,205,662 | $ | 1,487,111,601 | $ | 487,877,251 | |||||||||||||
Undistributed net investment income | 34,875 | 164,192 | 38,896 | 3,564,429 | 1,048,738 | ||||||||||||||||||
Undistributed net realized loss | (30,374,079 | ) | (368,639,583 | ) | (84,601,301 | ) | (189,229,447 | ) | (29,686,498 | ) | |||||||||||||
Net unrealized appreciation | 1,356,356 | 8,308,744 | 2,580,276 | 87,214,628 | 4,405,046 | ||||||||||||||||||
Net Assets | $ | 18,483,887 | $ | 128,643,599 | $ | 28,223,533 | $ | 1,388,661,211 | $ | 463,644,537 | |||||||||||||
Shares outstanding (unlimited amount authorized, $0.01 par value) | 700,000 | 2,750,000 | 550,000 | 23,250,000 | 6,950,000 | ||||||||||||||||||
Net asset value | $ | 26.41 | $ | 46.78 | $ | 51.32 | $ | 59.73 | $ | 66.71 | |||||||||||||
Share price | $ | 26.40 | $ | 46.75 | $ | 51.30 | $ | 59.72 | $ | 66.72 | |||||||||||||
Unaffiliated investments, at cost | $ | 17,131,270 | $ | 120,344,204 | $ | 25,721,457 | $ | 1,300,947,965 | $ | 458,678,699 | |||||||||||||
Affiliated investments, at cost | $ | — | $ | — | $ | — | $ | 479,815 | $ | 502,618 | |||||||||||||
Investments of securities lending collateral in affiliated money market fund, at cost | $ | — | $ | — | $ | — | $ | 17,589,874 | $ | 30,134,649 | |||||||||||||
Total investments, at cost | $ | 17,131,270 | $ | 120,344,204 | $ | 25,721,457 | $ | 1,319,017,654 | $ | 489,315,966 | |||||||||||||
Foreign currencies, at cost | $ | — | $ | — | $ | — | $ | — | $ | 18,954 | |||||||||||||
(a) Includes securities on loan with an aggregate value of | $ | — | $ | — | $ | — | $ | 17,065,026 | $ | 29,063,794 |
See Notes to Financial Statements.
51
Statements of Operations
Year Ended April 30, 2012
PowerShares Dynamic MagniQuant Portfolio (PIQ) | PowerShares Dynamic Market Portfolio (PWC) | PowerShares Dynamic OTC Portfolio (PWO) | PowerShares FTSE RAFI US 1000 Portfolio (PRF) | PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) | |||||||||||||||||||
INVESTMENT INCOME: | |||||||||||||||||||||||
Unaffiliated dividend income | $ | 262,895 | $ | 2,351,517 | $ | 249,056 | $ | 28,184,307 | $ | 4,993,704 | |||||||||||||
Affiliated dividend income (Note 4) | — | — | — | 14,986 | 25,983 | ||||||||||||||||||
Affiliated securities lending income | — | — | — | 373,994 | 802,456 | ||||||||||||||||||
Foreign withholding tax | — | (405 | ) | — | (29,510 | ) | (1,485 | ) | |||||||||||||||
Total Income | 262,895 | 2,351,112 | 249,056 | 28,543,777 | 5,820,658 | ||||||||||||||||||
EXPENSES: | |||||||||||||||||||||||
Advisory fees | 95,509 | 733,078 | 152,739 | 3,458,025 | 1,085,018 | ||||||||||||||||||
Accounting & administration fees | 67,460 | 67,460 | 67,460 | 279,101 | 86,797 | ||||||||||||||||||
Professional fees | 30,720 | 40,142 | 30,837 | 86,668 | 45,607 | ||||||||||||||||||
Custodian & transfer agent fees | 14,471 | 15,411 | 7,769 | 84,633 | 50,274 | ||||||||||||||||||
Sub-licensing | 9,551 | 43,985 | 9,164 | 1,073,176 | 336,736 | ||||||||||||||||||
Trustees fees | 5,524 | 10,202 | 6,038 | 39,016 | 15,449 | ||||||||||||||||||
Other expenses | 8,883 | 1,845 | 9,092 | 65,902 | 25,455 | ||||||||||||||||||
Total Expenses | 232,118 | 912,123 | 283,099 | 5,086,521 | 1,645,336 | ||||||||||||||||||
Less: Waivers | (107,958 | ) | (32,430 | ) | (99,812 | ) | (420,812 | ) | (186,171 | ) | |||||||||||||
Net Expenses | 124,160 | 879,693 | 183,287 | 4,665,709 | 1,459,165 | ||||||||||||||||||
Net Investment Income | 138,735 | 1,471,419 | 65,769 | 23,878,068 | 4,361,493 | ||||||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS): | |||||||||||||||||||||||
Net realized gain (loss) from: | |||||||||||||||||||||||
Investment securities | (3,481,386 | ) | (28,242,797 | ) | (5,520,719 | ) | (13,454,551 | ) | (4,154,890 | ) | |||||||||||||
In-kind redemptions | 4,719,042 | 26,955,243 | 6,745,945 | 49,983,066 | 30,639,386 | ||||||||||||||||||
Net realized gain (loss) | 1,237,656 | (1,287,554 | ) | 1,225,226 | 36,528,515 | 26,484,496 | |||||||||||||||||
Change in net unrealized appreciation (depreciation) on: | |||||||||||||||||||||||
Investment securities | (2,345,790 | ) | (7,880,233 | ) | (3,319,406 | ) | (51,057,800 | ) | (49,171,951 | ) | |||||||||||||
Foreign currencies | — | — | — | — | (2,214 | ) | |||||||||||||||||
Net change in unrealized appreciation (depreciation) | (2,345,790 | ) | (7,880,233 | ) | (3,319,406 | ) | (51,057,800 | ) | (49,174,165 | ) | |||||||||||||
Net realized and unrealized gain (loss) | (1,108,134 | ) | (9,167,787 | ) | (2,094,180 | ) | (14,529,285 | ) | (22,689,669 | ) | |||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | (969,399 | ) | $ | (7,696,368 | ) | $ | (2,028,411 | ) | $ | 9,348,783 | $ | (18,328,176 | ) |
See Notes to Financial Statements.
52
This page intentionally left blank
Statements of Changes in Net Assets
PowerShares Dynamic MagniQuant Portfolio (PIQ) | PowerShares Dynamic Market Portfolio (PWC) | PowerShares Dynamic OTC Portfolio (PWO) | |||||||||||||||||||||||||
Year Ended April 30, 2012 | Year Ended April 30, 2011 | Year Ended April 30, 2012 | Year Ended April 30, 2011 | Year Ended April 30, 2012 | Year Ended April 30, 2011 | ||||||||||||||||||||||
OPERATIONS: | |||||||||||||||||||||||||||
Net investment income | $ | 138,735 | $ | 231,441 | $ | 1,471,419 | $ | 2,627,327 | $ | 65,769 | $ | 56,527 | |||||||||||||||
Net realized gain (loss) | 1,237,656 | 3,045,920 | (1,287,554 | ) | 31,749,137 | 1,225,226 | 6,467,416 | ||||||||||||||||||||
Net change in unrealized appreciation (depreciation) | (2,345,790 | ) | 110,912 | (7,880,233 | ) | (1,021,537 | ) | (3,319,406 | ) | 62,498 | |||||||||||||||||
Net increase (decrease) in net assets resulting from operations | (969,399 | ) | 3,388,273 | (7,696,368 | ) | 33,354,927 | (2,028,411 | ) | 6,586,441 | ||||||||||||||||||
Undistributed net investment income (loss) included in the price of units issued and redeemed | (13,776 | ) | (14,028 | ) | 27,567 | (12,104 | ) | 405 | (13,179 | ) | |||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||||||||||||
Net investment income | (131,104 | ) | (213,106 | ) | (1,361,510 | ) | (2,885,329 | ) | (21,198 | ) | (84,849 | ) | |||||||||||||||
SHAREHOLDER TRANSACTIONS: | |||||||||||||||||||||||||||
Proceeds from shares sold | 26,804,052 | 50,752,466 | 201,665,339 | 336,045,030 | 42,152,256 | 42,792,852 | |||||||||||||||||||||
Value of shares repurchased | (34,244,116 | ) | (53,976,300 | ) | (252,171,146 | ) | (408,458,005 | ) | (52,199,792 | ) | (49,608,534 | ) | |||||||||||||||
Net income (loss) equalization | 13,776 | 14,028 | (27,567 | ) | 12,104 | (405 | ) | 13,179 | |||||||||||||||||||
Net increase (decrease) in net assets resulting from shares transactions | (7,426,288 | ) | (3,209,806 | ) | (50,533,374 | ) | (72,400,871 | ) | (10,047,941 | ) | (6,802,503 | ) | |||||||||||||||
Increase (Decrease) in Net Assets | (8,540,567 | ) | (48,667 | ) | (59,563,685 | ) | (41,943,377 | ) | (12,097,145 | ) | (314,090 | ) | |||||||||||||||
NET ASSETS: | |||||||||||||||||||||||||||
Beginning of year | 27,024,454 | 27,073,121 | 188,207,284 | 230,150,661 | 40,320,678 | 40,634,768 | |||||||||||||||||||||
End of year | $ | 18,483,887 | $ | 27,024,454 | $ | 128,643,599 | $ | 188,207,284 | $ | 28,223,533 | $ | 40,320,678 | |||||||||||||||
Undistributed net investment income (loss) at end of year | $ | 34,875 | $ | 29,111 | $ | 164,192 | $ | 114,986 | $ | 38,896 | $ | (5,634 | ) | ||||||||||||||
CHANGES IN SHARES OUTSTANDING: | |||||||||||||||||||||||||||
Shares sold | 1,050,000 | 2,250,000 | 4,450,000 | 8,100,000 | 850,000 | 950,000 | |||||||||||||||||||||
Shares repurchased | (1,350,000 | ) | (2,450,000 | ) | (5,600,000 | ) | (9,900,000 | ) | (1,050,000 | ) | (1,100,000 | ) | |||||||||||||||
Shares outstanding, beginning of year | 1,000,000 | 1,200,000 | 3,900,000 | 5,700,000 | 750,000 | 900,000 | |||||||||||||||||||||
Shares outstanding, end of year | 700,000 | 1,000,000 | 2,750,000 | 3,900,000 | 550,000 | 750,000 |
See Notes to Financial Statements.
54
PowerShares FTSE RAFI US 1000 Portfolio (PRF) | PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) | ||||||||||||||||||
Year Ended April 30, 2012 | Year Ended April 30, 2011 | Year Ended April 30, 2012 | Year Ended April 30, 2011 | ||||||||||||||||
OPERATIONS: | |||||||||||||||||||
Net investment income | $ | 23,878,068 | $ | 17,008,836 | $ | 4,361,493 | $ | 2,726,008 | |||||||||||
Net realized gain (loss) | 36,528,515 | 6,161,455 | 26,484,496 | 46,134,192 | |||||||||||||||
Net change in unrealized appreciation (depreciation) | (51,057,800 | ) | 140,652,771 | (49,174,165 | ) | 22,725,819 | |||||||||||||
Net increase (decrease) in net assets resulting from operations | 9,348,783 | 163,823,062 | (18,328,176 | ) | 71,586,019 | ||||||||||||||
Undistributed net investment income (loss) included in the price of units issued and redeemed | 1,086,347 | 2,192,781 | 168,937 | 161,384 | |||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||||
Net investment income | (23,834,366 | ) | (14,549,503 | ) | (3,690,489 | ) | (2,570,205 | ) | |||||||||||
SHAREHOLDER TRANSACTIONS: | |||||||||||||||||||
Proceeds from shares sold | 338,194,606 | 487,427,763 | 179,108,809 | 213,860,921 | |||||||||||||||
Value of shares repurchased | (143,294,034 | ) | (76,883,089 | ) | (103,271,648 | ) | (157,185,855 | ) | |||||||||||
Net income (loss) equalization | (1,086,347 | ) | (2,192,781 | ) | (168,937 | ) | (161,384 | ) | |||||||||||
Net increase (decrease) in net assets resulting from shares transactions | 193,814,225 | 408,351,893 | 75,668,224 | 56,513,682 | |||||||||||||||
Increase (Decrease) in Net Assets | 180,414,989 | 559,818,233 | 53,818,496 | 125,690,880 | |||||||||||||||
NET ASSETS: | |||||||||||||||||||
Beginning of year | 1,208,246,222 | 648,427,989 | 409,826,041 | 284,135,161 | |||||||||||||||
End of year | $ | 1,388,661,211 | $ | 1,208,246,222 | $ | 463,644,537 | $ | 409,826,041 | |||||||||||
Undistributed net investment income (loss) at end of year | $ | 3,564,429 | $ | 3,544,038 | $ | 1,048,738 | $ | 364,261 | |||||||||||
CHANGES IN SHARES OUTSTANDING: | |||||||||||||||||||
Shares sold | 5,800,000 | 9,000,000 | 2,750,000 | 3,500,000 | |||||||||||||||
Shares repurchased | (2,450,000 | ) | (1,350,000 | ) | (1,600,000 | ) | (2,450,000 | ) | |||||||||||
Shares outstanding, beginning of year | 19,900,000 | 12,250,000 | 5,800,000 | 4,750,000 | |||||||||||||||
Shares outstanding, end of year | 23,250,000 | 19,900,000 | 6,950,000 | 5,800,000 |
55
Financial Highlights
PowerShares Dynamic MagniQuant Portfolio (PIQ)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of year | $ | 27.02 | $ | 22.56 | $ | 16.85 | $ | 25.08 | $ | 28.02 | |||||||||||||
Net investment income(a) | 0.18 | 0.19 | 0.09 | 0.14 | 0.14 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.62 | ) | 4.45 | 5.71 | (8.24 | ) | (2.87 | ) | |||||||||||||||
Total from investment operations | (0.44 | ) | 4.64 | 5.80 | (8.10 | ) | (2.73 | ) | |||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.17 | ) | (0.18 | ) | (0.09 | ) | (0.13 | ) | (0.20 | ) | |||||||||||||
Return of capital | — | — | — | — | (0.01 | ) | |||||||||||||||||
Total distributions | (0.17 | ) | (0.18 | ) | (0.09 | ) | (0.13 | ) | (0.21 | ) | |||||||||||||
Net asset value at end of year | $ | 26.41 | $ | 27.02 | $ | 22.56 | $ | 16.85 | $ | 25.08 | |||||||||||||
Share price at end of year(b) | $ | 26.40 | $ | 27.03 | $ | 22.56 | $ | 16.84 | |||||||||||||||
NET ASSET VALUE TOTAL RETURN(c) | (1.55 | )% | 20.72 | % | 34.54 | % | (32.40 | )% | (9.81 | )% | |||||||||||||
SHARE PRICE TOTAL RETURN(c) | (1.63 | )% | 20.76 | % | 34.62 | % | (32.41 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 18,484 | $ | 27,024 | $ | 27,073 | $ | 28,651 | $ | 62,700 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.65 | % | 0.65 | % | 0.65 | % | 0.65 | % | 0.67 | % | |||||||||||||
Expenses, prior to Waivers | 1.22 | % | 1.08 | % | 0.98 | % | 0.87 | % | 0.72 | % | |||||||||||||
Net investment income, after Waivers | 0.73 | % | 0.83 | % | 0.45 | % | 0.70 | % | 0.53 | % | |||||||||||||
Portfolio turnover rate(d) | 110 | % | 93 | % | 98 | % | 102 | % | 76 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(e) | $ | (0.02 | ) | $ | (0.01 | ) | $ | (0.00 | )(f) | $ | (0.01 | ) | $ | 0.00 | (f) |
PowerShares Dynamic Market Portfolio (PWC)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of year | $ | 48.26 | $ | 40.38 | $ | 31.42 | $ | 48.12 | $ | 53.32 | |||||||||||||
Net investment income(a) | 0.44 | 0.57 | 0.33 | 0.50 | 0.37 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (1.52 | ) | 7.94 | 8.97 | (16.72 | ) | (5.09 | ) | |||||||||||||||
Total from investment operations | (1.08 | ) | 8.51 | 9.30 | (16.22 | ) | (4.72 | ) | |||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.40 | ) | (0.63 | ) | (0.34 | ) | (0.48 | ) | (0.48 | ) | |||||||||||||
Net asset value at end of year | $ | 46.78 | $ | 48.26 | $ | 40.38 | $ | 31.42 | $ | 48.12 | |||||||||||||
Share price at end of year(b) | $ | 46.75 | $ | 48.24 | $ | 40.38 | $ | 31.41 | |||||||||||||||
NET ASSET VALUE TOTAL RETURN(c) | (2.12 | )% | 21.34 | % | 29.75 | % | (33.86 | )% | (8.93 | )% | |||||||||||||
SHARE PRICE TOTAL RETURN(c) | (2.14 | )% | 21.29 | % | 29.80 | % | (33.84 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 128,644 | $ | 188,207 | $ | 230,151 | $ | 260,779 | $ | 620,703 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.60 | % | 0.60 | % | 0.60 | % | 0.60 | % | 0.58 | % | |||||||||||||
Expenses, prior to Waivers | 0.62 | % | 0.64 | % | 0.60 | % | 0.60 | % | 0.59 | % | |||||||||||||
Net investment income, after Waivers | 1.00 | % | 1.38 | % | 0.92 | % | 1.28 | % | 0.72 | % | |||||||||||||
Portfolio turnover rate(d) | 133 | % | 107 | % | 98 | % | 113 | % | 121 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(e) | $ | 0.01 | $ | 0.00 | (f) | $ | 0.00 | (f) | $ | (0.01 | ) | $ | (0.01 | ) |
(a) Based on average shares outstanding.
(b) The mean between the last bid and ask prices.
(c) 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.
(d) Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
(e) The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(f) Amount represents less than $0.005.
See Notes to Financial Statements.
56
Financial Highlights (Continued)
PowerShares Dynamic OTC Portfolio (PWO)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of year | $ | 53.76 | $ | 45.15 | $ | 32.83 | $ | 46.92 | $ | 55.03 | |||||||||||||
Net investment income (loss)(a) | 0.10 | 0.07 | 0.01 | 0.03 | (0.11 | ) | |||||||||||||||||
Net realized and unrealized gain (loss) on investments | (2.50 | ) | 8.65 | 12.36 | (14.12 | ) | (7.94 | ) | |||||||||||||||
Total from investment operations | (2.40 | ) | 8.72 | 12.37 | (14.09 | ) | (8.05 | ) | |||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.04 | ) | (0.11 | ) | (0.05 | ) | — | — | |||||||||||||||
Return of capital | — | — | — | — | (0.06 | ) | |||||||||||||||||
Total distributions | (0.04 | ) | (0.11 | ) | (0.05 | ) | — | (0.06 | ) | ||||||||||||||
Net asset value at end of year | $ | 51.32 | $ | 53.76 | $ | 45.15 | $ | 32.83 | $ | 46.92 | |||||||||||||
Share price at end of year(b) | $ | 51.30 | $ | 53.75 | $ | 45.15 | $ | 32.83 | |||||||||||||||
NET ASSET VALUE TOTAL RETURN(c) | (4.46 | )% | 19.34 | % | 37.73 | % | (30.03 | )% | (14.65 | )% | |||||||||||||
SHARE PRICE TOTAL RETURN(c) | (4.48 | )% | 19.31 | % | 37.73 | % | (30.06 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 28,224 | $ | 40,321 | $ | 40,635 | $ | 39,393 | $ | 96,187 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.60 | % | 0.60 | % | 0.60 | % | 0.59 | % | 0.59 | % | |||||||||||||
Expenses, prior to Waivers | 0.93 | % | 0.91 | % | 0.85 | % | 0.74 | % | 0.64 | % | |||||||||||||
Net investment income (loss), after Waivers | 0.22 | % | 0.15 | % | 0.01 | % | 0.08 | % | (0.21 | )% | |||||||||||||
Portfolio turnover rate(d) | 99 | % | 75 | % | 90 | % | 77 | % | 60 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(e) | $ | 0.00 | (f) | $ | (0.02 | ) | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.01 | ) |
PowerShares FTSE RAFI US 1000 Portfolio (PRF)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of year | $ | 60.72 | $ | 52.93 | $ | 34.78 | $ | 55.15 | $ | 60.99 | |||||||||||||
Net investment income(a) | 1.12 | 1.07 | 0.62 | 0.97 | 0.89 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.99 | ) | 7.63 | 18.21 | (20.26 | ) | (5.96 | ) | |||||||||||||||
Total from investment operations | 0.13 | 8.70 | 18.83 | (19.29 | ) | (5.07 | ) | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (1.12 | ) | (0.91 | ) | (0.68 | ) | (1.08 | ) | (0.77 | ) | |||||||||||||
Net asset value at end of year | $ | 59.73 | $ | 60.72 | $ | 52.93 | $ | 34.78 | $ | 55.15 | |||||||||||||
Share price at end of year(b) | $ | 59.72 | $ | 60.71 | $ | 52.96 | $ | 34.78 | |||||||||||||||
NET ASSET VALUE TOTAL RETURN(c) | 0.41 | % | 16.72 | % | 54.57 | % | (35.26 | )% | (8.42 | )% | |||||||||||||
SHARE PRICE TOTAL RETURN(c) | 0.41 | % | 16.63 | % | 54.66 | % | (35.20 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 1,388,661 | $ | 1,208,246 | $ | 648,428 | $ | 396,443 | $ | 876,964 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.39 | % | 0.39 | % | 0.39 | % | 0.58 | % | 0.67 | % | |||||||||||||
Expenses, prior to Waivers | 0.43 | % | 0.44 | % | 0.45 | % | 0.60 | % | 0.66 | % | |||||||||||||
Net investment income, after Waivers | 2.00 | % | 2.01 | % | 1.38 | % | 2.34 | % | 1.50 | % | |||||||||||||
Portfolio turnover rate(d) | 6 | % | 9 | % | 24 | % | 15 | % | 12 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(e) | $ | 0.05 | $ | 0.14 | $ | 0.01 | $ | (0.07 | ) | $ | (0.04 | ) |
(a) Based on average shares outstanding.
(b) The mean between the last bid and ask prices.
(c) 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.
(d) Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
(e) The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(f) Amount represents less than $0.005.
See Notes to Financial Statements.
57
Financial Highlights (Continued)
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of year | $ | 70.66 | $ | 59.82 | $ | 34.96 | $ | 50.36 | $ | 57.12 | |||||||||||||
Net investment income(a) | 0.73 | 0.50 | 0.32 | 0.46 | 0.50 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (4.04 | ) | 10.80 | 24.88 | (15.42 | ) | (6.81 | ) | |||||||||||||||
Total from investment operations | (3.31 | ) | 11.30 | 25.20 | (14.96 | ) | (6.31 | ) | |||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.64 | ) | (0.46 | ) | (0.34 | ) | (0.44 | ) | (0.45 | ) | |||||||||||||
Net asset value at end of year | $ | 66.71 | $ | 70.66 | $ | 59.82 | $ | 34.96 | $ | 50.36 | |||||||||||||
Share price at end of year(b) | $ | 66.72 | $ | 70.64 | $ | 59.79 | $ | 34.90 | |||||||||||||||
NET ASSET VALUE TOTAL RETURN(c) | (4.60 | )% | 19.04 | % | 72.38 | %(d) | (29.79 | )% | (11.10 | )% | |||||||||||||
SHARE PRICE TOTAL RETURN(c) | (4.56 | )% | 19.06 | % | 72.59 | % | (29.84 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 463,645 | $ | 409,826 | $ | 284,135 | $ | 94,399 | $ | 130,944 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.39 | % | 0.39 | % | 0.39 | % | 0.58 | % | 0.71 | % | |||||||||||||
Expenses, prior to Waivers | 0.44 | % | 0.46 | % | 0.51 | % | 0.79 | % | 0.76 | % | |||||||||||||
Net investment income, after Waivers | 1.17 | % | 0.82 | % | 0.67 | % | 1.22 | % | 0.92 | % | |||||||||||||
Portfolio turnover rate(e) | 15 | % | 19 | % | 16 | % | 15 | % | 42 | % | |||||||||||||
Undistributed net investment income included in price of units issued and redeemed(a)(f) | $ | 0.03 | $ | 0.03 | $ | 0.08 | $ | 0.00 | (g) | $ | 0.09 |
(a) Based on average shares outstanding.
(b) The mean between the last bid and ask prices.
(c) 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.
(d) 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%.
(e) Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
(f) The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(g) Amount represents less than $0.005.
See Notes to Financial Statements.
58
Notes to Financial Statements
PowerShares Exchange-Traded Fund Trust
April 30, 2012
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, 2012, the Trust offered fifty-eight portfolios. This report includes the following portfolios:
Full Name | Short Name | ||||||
PowerShares Dynamic MagniQuant Portfolio (PIQ) | "Dynamic MagniQuant Portfolio" | ||||||
PowerShares Dynamic Market Portfolio (PWC) | "Dynamic Market Portfolio" | ||||||
PowerShares Dynamic OTC Portfolio (PWO) | "Dynamic OTC Portfolio" | ||||||
PowerShares FTSE RAFI US 1000 Portfolio (PRF) | "FTSE RAFI US 1000 Portfolio" | ||||||
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) | "FTSE RAFI US 1500 Small-Mid Portfolio" | ||||||
Each portfolio (a "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, which is listed and traded on The NASDAQ Stock Market LLC.
The market prices of each Fund's shares may differ to some degree from the Fund's net asset value ("NAV"). 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 by Authorized Participants, the Shares are not individually redeemable securities of the Funds.
The investment objective of each Fund is to seek investment results that generally correspond (before the Fund's fees and expenses) to the price and yield of its respective index listed below (each, an "Underlying Index"):
Fund | Index | ||||||
Dynamic MagniQuant Portfolio | Dynamic Top 200 IntellidexSM Index | ||||||
Dynamic Market Portfolio | Dynamic Market IntellidexSM Index | ||||||
Dynamic OTC Portfolio | Dynamic OTC IntellidexSM Index | ||||||
FTSE RAFI US 1000 Portfolio | FTSE RAFI US 1000 Index | ||||||
FTSE RAFI US 1500 Small-Mid Portfolio | FTSE RAFI US 1500 Small-Mid Index | ||||||
Note 2. Significant Accounting Policies
The preparation of the financial statements in accordance with accounting principles generally accepted in the United States of America ("GAAP") 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.
59
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
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. 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 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 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.
60
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
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
Index Risk. Unlike many investment companies, the Funds do not utilize an investing strategy that seeks returns in excess of each Fund's respective Underlying Index. Therefore, a Fund would not necessarily buy or sell a security unless that security is added or removed, respectively, from its respective Underlying Index even if that security generally is underperforming.
Concentration Risk. A significant percentage of a Fund's Underlying Index may be composed of issuers in a single industry or sector of the economy. If the Fund is focused in an industry or sector, it may present more risks than if it were broadly diversified over numerous industries and sectors of the economy. At times, such industry or group of industries may be out of favor and underperform other industries of the market as a whole.
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.
Small and Medium Capitalization Company Risk. Investing in securities of small and medium capitalization companies involves greater risk than customarily is associated with investing in larger, more established companies. These companies' securities may be more volatile and less liquid than those of more established companies. These securities may have returns that vary, sometimes significantly, from the overall securities market. Often small and medium capitalization companies and the industries in which they focus are still evolving and, as a result, they may be more sensitive to changing market conditions.
Equity Risk. Equity risk is the risk that the value of the securities the Fund holds will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities the Fund holds participate or factors relating to specific companies in which the Fund invests. For example, an adverse event, such as an unfavorable earnings report, may depress the value of equity securities the Fund holds; the price of common stock of an issuer may be particularly sensitive to general movements in the stock market; or a drop in the stock market may depress the price of most or all of the common stocks and other equity securities the Fund holds. In addition, common stock of an issuer in the Fund's portfolio may decline in price if the issuer fails to make anticipated dividend payments because, among other reasons, the issuer of the security experiences a decline in its financial condition. Common stock is subordinated to preferred stocks, bonds and other debt instruments in a company's capital structure, in
61
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
terms of priority to corporate income, and therefore will be subject to greater dividend risk than preferred stocks or debt instruments of such issuers.
C. Federal Income Taxes
Each Fund intends to comply with the provisions of the Internal Revenue Code of 1986, as amended (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 U.S. federal tax returns and tax returns in 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 that are directly identifiable to a specific Fund are applied to that Fund. Expenses of the Trust that 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 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, sub-licensing fees related to its respective Underlying Index, any distribution fees or expenses, litigation expenses, fees payable to the Trust's Board members who are not "interested persons" (as defined in the 1940 Act) of the Trust or Invesco PowerShares Capital Management LLC (the "Adviser") (the "Independent Trustees"), expenses incurred in connection with the Board members' services, including travel expenses and legal fees of counsel for the Independent Trustees, 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 records them 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
62
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
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.
H. Securities Lending
The FTSE RAFI US 1000 Portfolio and FTSE RAFI US 1500 Small-Mid Portfolio may lend portfolio securities having a market value up to one-third of the Fund's total assets. Such loans are secured by cash collateral equal to no less than 102% of the market value of the loaned securities determined daily by the securities lending provider. Cash collateral received in connection with these loans is invested in an affiliated money market fund and is shown as such on the Schedule of Investments. It is the policy of these Funds to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to a Fund if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. A Fund could experience delays and costs in gaining access to the collateral. A Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, is included in Affiliated securities lending income on the Statements of Operations. The aggregate value of securities out on loan is shown on the Statements of Assets and Liabilities, if any.
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 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 0.50% 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 Adviser has entered into an Amended and Restated Excess Expense Agreement (the "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 (excluding interest expenses, brokerage commissions and other trading expenses, sub-licensing fees, offering costs, taxes and extraordinary expenses) of the Fund from exceeding 0.60% of the Fund's average daily net assets per year (the "Expense Cap"), at least until August 31, 2013. The Expense Cap for the FTSE RAFI US
63
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
1000 Portfolio and the FTSE RAFI US 1500 Small-Mid Portfolio is 0.39% of each Fund's average daily net assets per year, at least until August 31, 2013, 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 offered 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, 2013.
For the Dynamic MagniQuant Portfolio, the FTSE RAFI US 1000 Portfolio and the FTSE RAFI US 1500 Small-Mid Portfolio, the Expense Agreement provides that the fees waived or expenses borne by the Adviser are subject to recapture by the Adviser for up to three years from the date the fee was waived 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 amounts available for potential future recapture by the Adviser under the Expense Agreement and the expiration schedule at April 30, 2012 are as follows:
Total Potential | Potential Recapture Amounts Expiring | ||||||||||||||||||
Recapture Amounts | 04/30/13 | 04/30/14 | 04/30/15 | ||||||||||||||||
Dynamic MagniQuant Portfolio | $ | 328,651 | $ | 99,281 | $ | 121,412 | $ | 107,958 | |||||||||||
FTSE RAFI US 1000 Portfolio | 1,179,807 | 319,051 | 439,944 | 420,812 | |||||||||||||||
FTSE RAFI US 1500 Small-Mid Portfolio | 629,026 | 201,979 | 240,876 | 186,171 |
The Trust has entered into a Distribution Agreement with Invesco 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 Distributor is an affiliate of the Adviser.
The Adviser has entered into a licensing agreement for each Fund with the following entities (each a "Licensor"):
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. | ||||||
Each Underlying Index name trademark is owned by its respective Licensor. These trademarks have been licensed to the Adviser for use with the Funds. Each Fund is entitled to use its Underlying Index pursuant to the Trust's sub-licensing agreement with the Adviser. The Funds are required to pay the sub-licensing fees that are shown on the Statements of Operations. 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 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.
64
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
Note 4. Investments in Affiliates
The Fund's Adviser is a subsidiary of Invesco Ltd. and therefore Invesco Ltd. and Invesco Mortgage Capital, Inc. REIT are considered to be affiliated with the FTSE RAFI US 1000 Portfolio and FTSE RAFI US 1500 Small-Mid Portfolio, respectively. The table below shows the Fund's transactions in and earnings from the investment in Invesco Ltd. and Invesco Mortgage Capital, Inc. REIT for the fiscal year ended April 30, 2012.
FTSE RAFI US 1000 Portfolio
Value April 30, 2011 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain | Value April 30, 2012 | Dividend Income | |||||||||||||||||||||||||
Invesco Ltd. | $ | 709,466 | $ | 151,843 | $ | (385,575 | ) | $ | (147,891 | ) | $ | 172,683 | $ | 500,526 | $ | 14,986 |
FTSE RAFI US 1500 Small-Mid Portfolio
Value April 30, 2011 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain (Loss) | Value April 30, 2012 | Dividend Income | |||||||||||||||||||||||||
Invesco Mortgage Capital, Inc. REIT | $ | 92,847 | $ | 422,576 | $ | (9,149 | ) | $ | (28,635 | ) | $ | (1,288 | ) | $ | 476,351 | $ | 25,983 |
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 yield curves, loss severities, default rates, discount rates, volatilities 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.
Except for the Fund listed below, as of April 30, 2012, the securities in each Fund were valued based on Level 1 inputs (see Schedule of Investments for security categories). The level assigned to the securities
65
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
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 | ||||||||||||||||
FTSE RAFI US 1500 Small-Mid Portfolio | |||||||||||||||||||
Equity Securities | $ | 463,447,756 | * | $ | — | $ | 139,253 | * | $ | 463,587,009 | |||||||||
Warrants | — | — | ** | — | — | ||||||||||||||
Money Market Fund | 30,134,649 | — | — | 30,134,649 | |||||||||||||||
Total Investments | $ | 493,582,405 | $ | — | $ | 139,253 | $ | 493,721,658 |
* Transfers occurred between Level 1 and Level 3 due to foreign fair value adjustments.
** Warrants with zero market value.
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, 2012 and 2011:
2012 | 2011 | ||||||||||||||||||
Ordinary Income | Return of Capital | Ordinary Income | Return of Capital | ||||||||||||||||
Dynamic MagniQuant Portfolio | $ | 131,104 | $ | — | $ | 213,106 | $ | — | |||||||||||
Dynamic Market Portfolio | 1,361,510 | — | 2,885,329 | — | |||||||||||||||
Dynamic OTC Portfolio | 21,198 | — | 84,849 | — | |||||||||||||||
FTSE RAFI US 1000 Portfolio | 23,834,366 | — | 14,549,503 | — | |||||||||||||||
FTSE RAFI US 1500 Small-Mid Portfolio | 3,690,489 | — | 2,570,205 | — |
Tax Components of Net Assets at Fiscal Year-End:
Undistributed Ordinary Income | Temporary Book/Tax Differences | Net Unrealized Appreciation (Depreciation) | Net Unrealized Appreciation (Depreciation) Other Investment | Capital Loss Carryforward | Post-October Capital Deferrals* | Shares of Beneficial Interest | Total Net Assets | ||||||||||||||||||||||||||||
Dynamic MagniQuant Portfolio | $ | 41,000 | $ | (6,125 | ) | $ | 1,351,169 | $ | — | $ | (28,893,881 | ) | $ | (1,475,011 | ) | $ | 47,466,735 | $ | 18,483,887 | ||||||||||||||||
Dynamic Market Portfolio | 181,252 | (17,060 | ) | 8,307,826 | — | (359,670,042 | ) | (8,968,623 | ) | 488,810,246 | 128,643,599 | ||||||||||||||||||||||||
Dynamic OTC Portfolio | 45,724 | (6,828 | ) | 2,580,061 | — | (82,848,662 | ) | (1,752,424 | ) | 110,205,662 | 28,223,533 | ||||||||||||||||||||||||
FTSE RAFI US 1000 Portfolio | 3,595,577 | (31,148 | ) | 43,853,386 | — | (139,312,281 | ) | (6,555,924 | ) | 1,487,111,601 | 1,388,661,211 | ||||||||||||||||||||||||
FTSE RAFI US 1500 Small-Mid Portfolio | 1,153,584 | (11,612 | ) | (4,098,043 | ) | (646 | ) | (17,411,005 | ) | (3,864,992 | ) | 487,877,251 | 463,644,537 |
* The Funds will elected to defer capital losses incurred after October 31 ("Post-October Capital losses") within the taxable year are deemed to arise on the first business day of each Fund's next taxable year.
66
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
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 Regulated Investment Company Modernization Act of 2010 (the "Act") eliminated the eight-year carryover period for capital losses that arise in taxable years beginning after its enactment date of December 22, 2010. Consequently, these capital losses can be carried forward for an unlimited period . However, capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Additionally, post-enactment capital loss carryforwards will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. The ability to utilize capital loss carryforward in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The following Funds had capital loss carryforward amounts as of April 30, 2012, which expire on April 30 of each year listed below:
Post-effective no expiration | |||||||||||||||||||||||||||||||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | Short-term | Long-term | Total* | ||||||||||||||||||||||||||||||||||
Dynamic MagniQuant Portfolio | $ | — | $ | — | $ | — | $ | 5,211,608 | $ | 10,595,808 | $ | 7,191,135 | $ | 3,524,581 | $ | — | $ | 2,370,749 | $ | 28,893,881 | |||||||||||||||||||||||
Dynamic Market Portfolio | 5,021,729 | 13,686,812 | 65,552,628 | 39,899,556 | 96,635,542 | 104,214,879 | 15,461,574 | 19,197,322 | — | 359,670,042 | |||||||||||||||||||||||||||||||||
Dynamic OTC Portfolio | 5,297,385 | 5,449,844 | 21,767,708 | 11,353,752 | 15,764,010 | 14,947,690 | 3,683,431 | 4,514,430 | 70,412 | 82,848,662 | |||||||||||||||||||||||||||||||||
FTSE RAFI US 1000 Portfolio | — | — | 44,432 | 1,148,192 | 44,806,580 | 49,808,238 | 38,490,195 | — | 5,014,644 | 139,312,281 | |||||||||||||||||||||||||||||||||
FTSE RAFI US 1500 Small-Mid Portfolio | — | — | 5,818 | 128,460 | 8,229,508 | 5,168,127 | 2,475,894 | — | 1,403,198 | 17,411,005 |
* 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, 2012, the following capital loss carryforwards were expired:
Amount | |||||||
Dynamic Market Portfolio | $ | 8,920,879 | |||||
Dynamic OTC Portfolio | 651,452 |
Note 7. Investment Transactions
For the fiscal year ended April 30, 2012, 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 | $ | 21,468,148 | $ | 21,812,419 | |||||||
Dynamic Market Portfolio | 197,606,750 | 197,686,684 | |||||||||
Dynamic OTC Portfolio | 31,100,067 | 30,714,635 | |||||||||
FTSE RAFI US 1000 Portfolio | 71,190,345 | 72,428,580 | |||||||||
FTSE RAFI US 1500 Small-Mid Portfolio | 59,041,706 | 57,184,033 |
67
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
For the fiscal year ended April 30, 2012, in-kind transactions associated with creations and redemptions were as follows:
Securities Received | Securities Delivered | ||||||||||
Dynamic MagniQuant Portfolio | $ | 28,931,240 | $ | 36,016,138 | |||||||
Dynamic Market Portfolio | 204,333,424 | 254,610,242 | |||||||||
Dynamic OTC Portfolio | 45,208,444 | 55,555,973 | |||||||||
FTSE RAFI US 1000 Portfolio | 338,534,287 | 142,455,016 | |||||||||
FTSE RAFI US 1500 Small-Mid Portfolio | 179,088,200 | 104,421,108 |
Gains and losses on in-kind transactions are generally not considered taxable gains and losses for Federal income tax purposes.
At April 30, 2012, cost of investments on a tax basis includes adjustments for financial reporting purposes, as of the most recently completed Federal income tax reporting period-end.
At April 30, 2012, the aggregate cost and the net unrealized appreciation (depreciation) of investments on a tax basis including the adjustments for financial reporting purposes were as follows:
Cost | Net Unrealized Appreciation (Depreciation) | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | ||||||||||||||||
Dynamic MagniQuant Portfolio | $ | 17,136,457 | $ | 1,351,169 | $ | 1,901,094 | $ | (549,925 | ) | ||||||||||
Dynamic Market Portfolio | 120,345,122 | 8,307,826 | 10,197,644 | (1,889,818 | ) | ||||||||||||||
Dynamic OTC Portfolio | 25,721,672 | 2,580,061 | 3,246,730 | (666,669 | ) | ||||||||||||||
FTSE RAFI US 1000 Portfolio | 1,362,378,896 | 43,853,386 | 139,950,377 | (96,096,991 | ) | ||||||||||||||
FTSE RAFI US 1500 Small-Mid Portfolio | 497,819,701 | (4,098,043 | ) | 42,130,002 | (46,228,045 | ) |
Note 8. Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of in-kind transactions, utilization of book equalization and partnership adjustments, on April 30, 2012, 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, 2012, the reclassifications were as follows:
Undistributed Net Investment Income (Loss) | Undistributed Net Realized Gain (Loss) | Shares of Beneficial Interest | |||||||||||||
Dynamic MagniQuant Portfolio | $ | 11,909 | $ | (4,708,608 | ) | $ | 4,696,699 | ||||||||
Dynamic Market Portfolio | (88,270 | ) | (17,877,443 | ) | 17,965,713 | ||||||||||
Dynamic OTC Portfolio | (446 | ) | (6,084,338 | ) | 6,084,784 | ||||||||||
FTSE RAFI US 1000 Portfolio | (1,109,658 | ) | (44,794,976 | ) | 45,904,634 | ||||||||||
FTSE RAFI US 1500 Small-Mid Portfolio | (155,464 | ) | (29,344,192 | ) | 29,499,656 |
68
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
Note 9. Trustees' Fees
The Funds compensate each Independent Trustee. The Trustees who are affiliated with the Adviser (the "Non-Independent Trustees") of the Trust do not receive any Trustees' fees.
The Trust has adopted a deferred compensation plan (the "Plan"). Under the Plan, an Independent Trustee who 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 select 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. Transactions in capital shares for each Fund are disclosed in detail on the Statements of Changes in Net Assets.
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.
69
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 PowerShares Dynamic MagniQuant Portfolio, PowerShares Dynamic Market Portfolio, PowerShares Dynamic OTC Portfolio, PowerShares FTSE RAFI US 1000 Portfolio and PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (each an individual portfolio of PowerShares Exchange-Traded Fund Trust, hereafter referred to as the "Funds") at April 30, 2012, the results of each of their operations for the year then ended, the change in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, 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 Funds' 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, 2012 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Chicago, IL
June 25, 2012
70
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, 2012:
Federal Income Tax Information
Qualified Dividend Income* | Corporate Dividends 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 | 87 | % | 82 | % |
* The above percentages are based on ordinary income dividends paid to shareholders during the Fund's fiscal year.
71
Trustees and Officers
The Independent Trustees, the Non-Independent 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, 2012.
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 During the Past 5 Years | ||||||||||||||||||
Ronn R. Bagge (54) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road 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) | 120 | None | ||||||||||||||||||
Todd J. Barre (54) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Trustee | Since 2010 | Assistant Professor of Business, Trinity Christian College (2010-Present); formerly 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 | 120 | None | ||||||||||||||||||
* This is the date the Independent 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, 2012, the Fund Complex consisted of the Trust's 58 portfolios and three other exchange-traded fund trusts with 62 portfolios advised by the Adviser.
72
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 During the Past 5 Years | ||||||||||||||||||
Marc M. Kole (51) 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) | 120 | None | ||||||||||||||||||
Philip M. Nussbaum (50) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Trustee | Since 2003 | Chairman, Performance Trust Capital Partners (2004-Present) | 120 | None | ||||||||||||||||||
* This is the date the Independent 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, 2012, the Fund Complex consisted of the Trust's 58 portfolios and three other exchange-traded fund trusts with 62 portfolios advised by the Adviser.
73
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 During the Past 5 Years | ||||||||||||||||||
Donald H. Wilson (52) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Chairman of the Board and Trustee | Trustee since 2006; Chair since 2012 | 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) | 120 | None | ||||||||||||||||||
* This is the date the Independent 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, 2012, the Fund Complex consisted of the Trust's 58 portfolios and three other exchange-traded fund trusts with 62 portfolios advised by the Adviser.
74
Trustees and Officers (Continued)
The Non-Independent Trustees and the executive officers of the Trust, their term of office and length of time served, their principal business occupations during the past five years, the number of portfolios in the Fund Complex overseen by the Non-Independent Trustees and the other directorships, if any held by the Trustees are shown below.
Name, Address, and Age of Non-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 Non-Independent Trustees | Other Directorships Held by Non-Independent Trustees During the Past 5 Years | ||||||||||||||||||
H. Bruce Bond (48) Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | 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) | 120 | None | ||||||||||||||||||
* This is the date the Non-Independent 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, 2012, the Fund Complex consists of the Trust's 58 portfolios and three other exchange-traded fund trusts with 62 portfolios advised by the Adviser.
75
Trustees and Officers (Continued)
Name, Address, and Age of Non-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 Non-Independent Trustees | Other Directorships Held by Non-Independent Trustees During the Past 5 Years | ||||||||||||||||||
Kevin M. Carome (55) 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 | 120 | None | ||||||||||||||||||
* This is the date the Non-Independent 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, 2012, the Fund Complex consisted of the Trust's 58 portfolios and three other exchange-traded fund trusts with 62 portfolios advised by the Adviser.
76
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 (37) 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) | ||||||||||||
Benjamin Fulton (50) 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 (30) 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 Portfolio Manager, Invesco PowerShares Capital Management LLC (2007-2008); Research Analyst, Invesco PowerShares Capital Management LLC (2005-2007); Research Analyst and Trader, Ritchie Capital, a hedge fund operator (2003-2005) | ||||||||||||
David Warren (54) Invesco Canada Ltd. 5140 Yonge Street Suite 900 Toronto, Ontario M2N 6X7 | Vice President | Since 2009 | Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. and Chief Administrative Officer, North American Retail, Invesco Ltd (2007-Present); formerly, Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (2000-2006) | ||||||||||||
* This is the period for which the Officers began serving the Trust. Each Officer serves an indefinite term, until his or her successor is elected.
77
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 | ||||||||||||
Christopher Joe (42) Invesco Management Group, Inc. 11 Greenway Plaza Suite 2500 Houston, TX 77046-1173 | Chief Compliance Officer | Since 2012 | U.S. Compliance Director, Invesco, Ltd.; Chief Compliance Officer, Invesco Investment Advisers, LLC (registered investment adviser); formerly, Assistant Fund Accounting Manager, Invesco, Ltd. | ||||||||||||
Sheri Morris (47) Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Treasurer | Since 2011 | Vice President, Treasurer and Principal Financial Officer, The Invesco Funds; Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) and Treasurer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Fund Trust. Formerly, Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.; Assistant Vice President and Assistant Treasurer, The Invesco Funds and Assistant Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc. | ||||||||||||
Anna Paglia (37) Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Secretary | Since 2011 | Head of Legal, Invesco PowerShares Capital Management LLC (2010-Present); formerly, Partner, K&L Gates LLP (formerly, Bell Boyd & Lloyd LLP) (2007-2010). Associate Counsel at Barclays Global Investors Ltd. (2004-2006) | ||||||||||||
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) 983-0903.
* This is the period for which the Officers began serving the Trust. Each Officer serves an indefinite term, until his or her successor is elected.
78
Board Considerations Regarding Approval of Continuation of Investment Advisory Agreement
At a meeting held on April 19, 2012, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust (the "Trust"), including the Independent Trustees, approved the continuation of the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the "Adviser") and the Trust for the following 56 series (each, a "Fund" and collectively, the "Funds"):
PowerShares Aerospace & Defense Portfolio
PowerShares Buyback AchieversTM Portfolio
PowerShares CleantechTM Portfolio
PowerShares Dividend AchieversTM Portfolio
PowerShares DWA Technical LeadersTM Portfolio
PowerShares Dynamic Banking Portfolio
PowerShares Dynamic Basic Materials Sector Portfolio
PowerShares Dynamic Biotechnology & Genome Portfolio
PowerShares Dynamic Building & Construction Portfolio
PowerShares Dynamic Consumer Discretionary Sector Portfolio
PowerShares Dynamic Consumer Staples Sector Portfolio
PowerShares Dynamic Energy Exploration & Production Portfolio
PowerShares Dynamic Energy Sector Portfolio
PowerShares Dynamic Financial Sector Portfolio
PowerShares Dynamic Food & Beverage Portfolio
PowerShares Dynamic Healthcare Sector Portfolio
PowerShares Dynamic Industrials Sector Portfolio
PowerShares Dynamic Insurance Portfolio
PowerShares Dynamic Large Cap Growth Portfolio
PowerShares Dynamic Large Cap Value Portfolio
PowerShares Dynamic Leisure and Entertainment Portfolio
PowerShares Dynamic MagniQuant Portfolio
PowerShares Dynamic Market Portfolio
PowerShares Dynamic Media Portfolio
PowerShares Dynamic Networking Portfolio
PowerShares Dynamic Oil & Gas Services Portfolio
PowerShares Dynamic OTC Portfolio
PowerShares Dynamic Pharmaceuticals Portfolio
PowerShares Dynamic Retail Portfolio
PowerShares Dynamic Semiconductors Portfolio
PowerShares Dynamic Software Portfolio
PowerShares Dynamic Technology Sector Portfolio
PowerShares Dynamic Utilities Portfolio
PowerShares Financial Preferred Portfolio
PowerShares FTSE RAFI US 1000 Portfolio
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio
PowerShares Fundamental Pure Large Core Portfolio
PowerShares Fundamental Pure Large Growth Portfolio
PowerShares Fundamental Pure Large Value Portfolio
PowerShares Fundamental Pure Mid Core Portfolio
PowerShares Fundamental Pure Mid Growth Portfolio
PowerShares Fundamental Pure Mid Value Portfolio
PowerShares Fundamental Pure Small Core Portfolio
PowerShares Fundamental Pure Small Growth Portfolio
PowerShares Fundamental Pure Small Value Portfolio
PowerShares Global Listed Private Equity Portfolio
PowerShares Golden Dragon Halter USX China Portfolio
PowerShares High Yield Equity Dividend AchieversTM Portfolio
PowerShares International Dividend AchieversTM Portfolio
PowerShares Lux Nanotech Portfolio
PowerShares Morningstar StockInvestor Core Portfolio
PowerShares S&P 500 High Quality Portfolio
PowerShares Water Resources Portfolio
PowerShares WilderHill Clean Energy Portfolio
PowerShares WilderHill Progressive Energy Portfolio
PowerShares Zacks Micro Cap 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
79
Board Considerations Regarding Approval of Continuation of Investment Advisory Agreement (Continued)
realized as a Fund grows, (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 for the one-year, three-year, five-year and since-inception periods ended December 31, 2011, as applicable, including reports on the correlation and tracking error between each Fund's performance and the performance of its underlying index, as well as the Adviser's analysis of the tracking error between each Fund and its underlying index. The Trustees noted that for each applicable period 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 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 daily net assets for each Fund other than PowerShares Dividend AchieversTM Portfolio, PowerShares High Yield Equity Dividend AchieversTM Portfolio, PowerShares International Dividend AchieversTM Portfolio, PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Core Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio, PowerShares Fundamental Pure Small Growth Portfolio and PowerShares Fundamental Pure Small Value Portfolio;
• 0.40% of the Fund's average daily net assets for each of PowerShares Dividend AchieversTM Portfolio, PowerShares High Yield Equity Dividend AchieversTM Portfolio and PowerShares International Dividend AchieversTM Portfolio; and
80
Board Considerations Regarding Approval of Continuation of Investment Advisory Agreement (Continued)
• 0.29% of the Fund's average daily net assets for each of PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Core Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio, PowerShares Fundamental Pure Small Growth Portfolio and PowerShares Fundamental Pure Small Value Portfolio (for each of PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Mid Core Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio, PowerShares Fundamental Pure Small Growth Portfolio and PowerShares Fundamental Pure Small Value Portfolio, the Trustees noted that the advisory fee for each of these Funds was reduced to 0.29% effective June 16, 2011).
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, 2013, as set forth below:
• 0.60%, excluding interest expenses, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses 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, acquired fund fees and expenses and extraordinary expenses, for each of PowerShares Dividend AchieversTM Portfolio, PowerShares High Yield Equity Dividend AchieversTM Portfolio and PowerShares International Dividend AchieversTM Portfolio;
• 0.50%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for each of PowerShares Morningstar StockInvestor Core Portfolio and PowerShares S&P 500 High Quality Portfolio;
• 0.39%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for each of PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Core Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio, PowerShares Fundamental Pure Small Growth Portfolio and PowerShares Fundamental Pure Small Value Portfolio (for each of PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Mid Core Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio, PowerShares Fundamental Pure Small Growth Portfolio and PowerShares Fundamental Pure Small Value Portfolio, the Trustees noted that the Expense Cap for each of these Funds was reduced to 0.39% effective June 16, 2011); and
81
Board Considerations Regarding Approval of Continuation of Investment Advisory Agreement (Continued)
• 0.60%, excluding interest expenses, licensing fees, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses 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 with comparable investment strategies as the Funds, except for PowerShares FTSE RAFI US 1000 Portfolio, and further noted the Adviser's representation that the advisory fee charged to the PowerShares FTSE RAFI US 1000 Portfolio was not higher than the fee the Adviser charged to its other clients with comparable investment strategies. The Trustees noted that each Fund's advisory fee (for the year ended December 31, 2011) 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 Global Listed Private Equity Portfolio and PowerShares Golden Dragon Halter USX China Portfolio, which was equal to or 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 Dynamic Large Cap Growth Portfolio, PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Growth Portfolio and PowerShares Fundamental Pure Small Value Portfolio, which was lower than the median advisory fee of its open-end index peer funds; and there was no comparable data for PowerShares Aerospace & Defense Portfolio, PowerShares CleantechTM Portfolio, PowerShares Dynamic Banking Portfolio, PowerShares Dynamic Basic Materials Sector Portfolio, PowerShares Dynamic Biotechnology & Genome Portfolio, PowerShares Dynamic Building & Construction Portfolio, PowerShares Dynamic Consumer Discretionary Sector Portfolio, PowerShares Dynamic Consumer Staples Sector Portfolio, PowerShares Dynamic Financial Sector Portfolio, PowerShares Dynamic Food & Beverage Portfolio, PowerShares Dynamic Healthcare Sector Portfolio, PowerShares Dynamic Industrials Sector Portfolio, PowerShares Dynamic Insurance Portfolio, PowerShares Dynamic Leisure and Entertainment Portfolio, PowerShares Dynamic Media Portfolio, PowerShares Dynamic Pharmaceuticals Portfolio, PowerShares Dynamic Retail Portfolio, PowerShares Financial Preferred Portfolio, PowerShares Global Listed Private Equity Portfolio or PowerShares Golden Dragon Halter USX China 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, 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 (for the year ended December 31, 2011) 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, PowerShares Golden Dragon Halter USX China Portfolio and PowerShares S&P 500 High Quality Portfolio, which was equal to or less than the median expense ratio of its ETF peer funds); and
82
Board Considerations Regarding Approval of Continuation of Investment Advisory Agreement (Continued)
• higher than the median expense ratio of its open-end index peer funds (except for the net expense ratio of each of PowerShares Dividend AchieversTM Portfolio, PowerShares DWA Technical LeadersTM Portfolio, PowerShares Dynamic Energy Exploration & Production Portfolio, PowerShares Dynamic Energy Sector Portfolio, PowerShares Dynamic Large Cap Growth Portfolio, PowerShares Dynamic Large Cap Value Portfolio, PowerShares Dynamic Networking Portfolio, PowerShares Oil & Gas Services Portfolio, PowerShares Dynamic OTC Portfolio, PowerShares Dynamic Semiconductors Portfolio, PowerShares Dynamic Software Portfolio, PowerShares Dynamic Technology Sector Portfolio, PowerShares Dynamic Utilities Sector Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Core Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio, PowerShares Fundamental Pure Small Growth Portfolio, PowerShares Fundamental Pure Small Value Portfolio, PowerShares High Yield Equity Dividend AchieversTM Portfolio, PowerShares Lux Nanotech Portfolio, PowerShares S&P 500 High Quality Portfolio, PowerShares Water Resources Portfolio, PowerShares WilderHill Clean Energy Portfolio and PowerShares WilderHill Progressive Energy Portfolio, which was lower than the median expense ratio of its open-end index peer funds; and there was no comparable data for PowerShares Aerospace & Defense Portfolio, PowerShares CleantechTM Portfolio, PowerShares Dynamic Banking Portfolio, PowerShares Dynamic Basic Materials Sector Portfolio, PowerShares Dynamic Biotechnology & Genome Portfolio, PowerShares Dynamic Building & Construction Portfolio, PowerShares Dynamic Consumer Discretionary Sector Portfolio, PowerShares Dynamic Consumer Staples Sector Portfolio, PowerShares Dynamic Financial Sector Portfolio, PowerShares Dynamic Food & Beverage Portfolio, PowerShares Dynamic Healthcare Sector Portfolio, PowerShares Dynamic Industrials Sector Portfolio, PowerShares Dynamic Insurance Portfolio, PowerShares Dynamic Leisure and Entertainment Portfolio, PowerShares Dynamic Media Portfolio, PowerShares Dynamic Pharmaceuticals Portfolio, PowerShares Dynamic Retail Portfolio, PowerShares Financial Preferred Portfolio, PowerShares Global Listed Private Equity Portfolio or PowerShares Golden Dragon Halter USX China 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, and noted those Funds for which license fees are included in the Funds' Expense Caps.
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.
83
Board Considerations Regarding Approval of Continuation of Investment Advisory Agreement (Continued)
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 Portfolio 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 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.
84
PROXY VOTING POLICIES AND PROCEDURES
A description of the Trust's 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) 983-0903. 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) 983-0903; or (ii) accessing the Trust's Form N-PX on the Commission's website at www.sec.gov.
QUARTERLY PORTFOLIOS
The Trust files its complete schedule of portfolio holdings for the Funds 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
© 2012 Invesco PowerShares Capital Management LLC P-PS-AR-2
2012 Annual Report to Shareholders
April 30, 2012
PowerShares Dynamic Banking Portfolio (PJB)
PowerShares Dynamic Biotechnology & Genome Portfolio (PBE)
PowerShares Dynamic Building & Construction Portfolio (PKB)
PowerShares Dynamic Energy Exploration & Production Portfolio (PXE)
PowerShares Dynamic Food & Beverage Portfolio (PBJ)
PowerShares Dynamic Insurance Portfolio (PIC)
PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ)
PowerShares Dynamic Media Portfolio (PBS)
PowerShares Dynamic Networking Portfolio (PXQ)
PowerShares Dynamic Oil & Gas Services Portfolio (PXJ)
PowerShares Dynamic Pharmaceuticals Portfolio (PJP)
PowerShares Dynamic Retail Portfolio (PMR)
PowerShares Dynamic Semiconductors Portfolio (PSI)
PowerShares Dynamic Software Portfolio (PSJ)
Table of Contents
The Market Environment | 2 | ||||||
Manager's Analysis | 4 | ||||||
Frequency Distribution of Discounts & Premiums | 32 | ||||||
Fees and Expenses | 34 | ||||||
Industry Portfolios | |||||||
Schedules of Investments | |||||||
PowerShares Dynamic Banking Portfolio (PJB) | 36 | ||||||
PowerShares Dynamic Biotechnology & Genome Portfolio (PBE) | 37 | ||||||
PowerShares Dynamic Building & Construction Portfolio (PKB) | 38 | ||||||
PowerShares Dynamic Energy Exploration & Production Portfolio (PXE) | 39 | ||||||
PowerShares Dynamic Food & Beverage Portfolio (PBJ) | 40 | ||||||
PowerShares Dynamic Insurance Portfolio (PIC) | 41 | ||||||
PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ) | 42 | ||||||
PowerShares Dynamic Media Portfolio (PBS) | 43 | ||||||
PowerShares Dynamic Networking Portfolio (PXQ) | 44 | ||||||
PowerShares Dynamic Oil & Gas Services Portfolio (PXJ) | 45 | ||||||
PowerShares Dynamic Pharmaceuticals Portfolio (PJP) | 46 | ||||||
PowerShares Dynamic Retail Portfolio (PMR) | 47 | ||||||
PowerShares Dynamic Semiconductors Portfolio (PSI) | 48 | ||||||
PowerShares Dynamic Software Portfolio (PSJ) | 49 | ||||||
Statements of Assets and Liabilities | 50 | ||||||
Statements of Operations | 52 | ||||||
Statements of Changes in Net Assets | 54 | ||||||
Financial Highlights | 59 | ||||||
Notes to Financial Statements | 66 | ||||||
Report of Independent Registered Public Accounting Firm | 79 | ||||||
Tax Information | 80 | ||||||
Trustees and Officers | 81 | ||||||
Board Considerations Regarding Approval of Continuation of Investment Advisory Agreement | 88 | ||||||
The Market Environment
Equity markets were volatile during the fiscal year ended April 30, 2012, but the broad market, as measured by the S&P 500® Index, still managed to post a small gain. While corporate earnings remained strong, investor enthusiasm was tempered by continuing high unemployment, sluggish consumer spending and soft housing data for most of the year. Although markets stabilized and remained generally positive in the spring and early summer, major equity indices sold off precipitously in August as the U.S. government struggled to raise the nation's debt ceiling. This led credit rating agency Standard & Poor's to announce its first-ever ratings downgrade to long-term U.S. government debt. Uncertainty created by the downgrade, combined with continuing concern about the debt crisis in the eurozone, reignited fears of a recession and pressured markets downward into the fall. As signs of muted but sustained economic growth mounted, equity markets moved off their October lows and posted strong gains through the close of the reporting period with the S&P 500® Index returning 12.8% from the end of October 2011 to the end of April 2012.
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 generally correspond (before fees and expenses) to the price and yield of the Dynamic Banking IntellidexSM Index (the "Index"). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index. The Index thoroughly evaluates companies based on a variety of investment merit criteria, including: price momentum, earnings momentum, quality, management action, and value. The Index is composed of stocks of 30 U.S. banking companies. These companies include money center banks, regional banks or thrifts that are principally engaged in providing a range of consumer and commercial products and services including depository and cash management services; consumer and commercial loans; residential and commercial real estate loans; as well as other related banking services.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned 4.74%. On a Net Asset Value ("NAV") basis, the Fund returned 4.82%. During the same reporting period, the Index returned 5.50%, while the S&P SuperComposite Commercial Banks Index returned 11.18%, the Dow Jones U.S. Banks Index returned (5.54)% and the S&P 500® Index returned 4.73%. The Fund benefited most from positive performance of securities of companies in regional banks and thrifts & mortgage finance sub-industries. The Fund was hurt most from negative performance of securities of companies in the other diversified financial services sub-industry.
At the single stock level, the Fund benefited most from exposure to BB&T Corp. (portfolio average weight of 2.10%), U.S. Bancorp (portfolio average weight of 3.76%), and PrivateBancorp, Inc. (no longer held at April 30, 2012). The leading detractors to the Fund were Comerica Inc. (portfolio average weight of 2.01%), Huntington Bancshares, Inc. (no longer held at April 30, 2012), and M&T Bank Corp. (no longer held at April 30, 2012).
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Commercial Banks-Central U.S. | 25.9 | ||||||
Commercial Banks-Southern U.S. | 24.0 | ||||||
Commercial Banks-Western U.S. | 20.9 | ||||||
Super-Regional Banks-U.S. | 16.1 | ||||||
Commercial Banks-Eastern U.S. | 7.5 | ||||||
Savings & Loan/Thrifts-Eastern U.S. | 3.0 | ||||||
Fiduciary Banks | 2.6 | ||||||
Money Market Fund | 0.8 | ||||||
Liabilities in excess of other assets | (0.8 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Small-Cap Value | 31.2 | ||||||
Mid-Cap Value | 23.1 | ||||||
Small-Cap Growth | 21.8 | ||||||
Large-Cap Growth | 10.8 | ||||||
Mid-Cap Growth | 7.8 | ||||||
Large-Cap Value | 5.3 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
U.S. Bancorp | 5.4 | ||||||
Wells Fargo & Co. | 5.4 | ||||||
Comerica, Inc. | 5.3 | ||||||
BB&T Corp. | 5.3 | ||||||
Cullen/Frost Bankers, Inc. | 5.0 | ||||||
First Republic Bank | 5.0 | ||||||
East West Bancorp, Inc. | 5.0 | ||||||
Commerce Bancshares, Inc. | 5.0 | ||||||
Home BancShares, Inc. | 3.0 | ||||||
Texas Capital Bancshares, Inc. | 3.0 | ||||||
Total | 47.4 |
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, 2012 | ||||||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Dynamic Banking IntellidexSM Index | 5.50 | % | 5.64 | % | (7.79 | )% | (7.82 | )% | (36.35 | )% | |||||||||||||
S&P SuperComposite Commercial Banks Index | 11.18 | % | 18.05 | % | (9.63 | )% | (8.32 | )% | (38.42 | )% | |||||||||||||
Dow Jones U.S. Banks Index | (5.54 | )% | 10.11 | % | (15.75 | )% | (13.60 | )% | (55.78 | )% | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 2.99 | % | 17.88 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | 4.82 | % | 4.76 | % | (8.67 | )% | (8.71 | )% | (39.67 | )% | |||||||||||||
Share Price Return | 4.74 | % | 4.82 | % | (8.68 | )% | (8.72 | )% | (39.71 | )% |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 1.17%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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. Banks 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, 389 and 500 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from 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 generally correspond (before fees and expenses) to the price and yield of the Dynamic Biotechnology & Genome IntellidexSM Index (the "Index"). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index. The Index is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including price momentum, earnings momentum, quality, management action, and value. The Index is composed of stocks of 30 U.S. biotechnology and genome companies. These companies are principally engaged in the research, development, manufacture and marketing and distribution of various biotechnological products, services and processes and companies that benefit significantly from scientific and technological advances in biotechnology and genetic engineering and research.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned (4.18)%. On a Net Asset Value ("NAV") basis, the Fund returned (3.80)%. During the same reporting period, the Index returned (3.15)%, while the S&P SuperComposite Biotech Index returned 26.74% and the S&P 500® Index returned 4.73%. The Fund benefitted most from positive performance of securities of companies in the biotechnology sub-industry. The Fund was hurt most from negative performance of securities of companies in the life sciences tools & services sub-industry.
At the single stock level, the Fund benefited most from exposure to Alexion Pharmaceuticals, Inc. (portfolio average weight of 5.42%), Vertex Pharmaceuticals, Inc. (no longer held at April 30, 2012), and Biogen Idec, Inc. (portfolio average weight of 5.35%). The leading detractors to the Fund were InterMune, Inc. (no longer held at April 30, 2012), Exelixis, Inc. (portfolio average weight of 1.00%), and Pain Therapeutics, Inc. (no longer held at April 30, 2012).
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Biotechnology | 52.7 | ||||||
Pharmaceuticals | 29.6 | ||||||
Healthcare-Products | 8.1 | ||||||
Chemicals | 4.9 | ||||||
Electronics | 4.8 | ||||||
Money Market Fund | 0.1 | ||||||
Liabilities in excess of other assets | (0.2 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Small-Cap Growth | 52.5 | ||||||
Mid-Cap Growth | 25.4 | ||||||
Large-Cap Growth | 22.1 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
Biogen Idec, Inc. | 5.8 | ||||||
Gilead Sciences, Inc. | 5.7 | ||||||
Alexion Pharmaceuticals, Inc. | 5.3 | ||||||
Amgen, Inc. | 5.3 | ||||||
BioMarin Pharmaceutical, Inc. | 5.0 | ||||||
Sigma-Aldrich Corp. | 4.9 | ||||||
Life Technologies Corp. | 4.9 | ||||||
Waters Corp. | 4.7 | ||||||
Onyx Pharmaceuticals, Inc. | 3.2 | ||||||
Optimer Pharmaceuticals, Inc. | 3.2 | ||||||
Total | 48.0 |
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, 2012 | ||||||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Dynamic Biotechnology & Genome IntellidexSM Index | (3.15 | )% | 21.22 | % | 3.72 | % | 6.81 | % | 57.02 | % | |||||||||||||
S&P SuperComposite Biotech Index | 26.74 | % | 17.65 | % | 7.26 | % | 9.40 | % | 84.79 | % | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 4.52 | % | 35.29 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | (3.80 | )% | 20.13 | % | 2.99 | % | 6.30 | % | 52.03 | % | |||||||||||||
Share Price Return | (4.18 | )% | 20.13 | % | 2.94 | % | 6.26 | % | 51.59 | % |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.65%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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 13 and 500 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from 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 generally correspond (before fees and expenses) to the price and yield of the Dynamic Building & Construction IntellidexSM Index (the "Index"). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index. The Index thoroughly evaluates companies based on a variety of investment merit criteria, including: price momentum, earnings momentum, quality, management action, and value. The Index is composed of stocks of 30 U.S. building and construction companies. These companies are primarily engaged in providing construction and related engineering services for building and remodeling residential properties, commercial or industrial buildings, or working on large-scale infrastructure projects, such as highways, tunnels, bridges, dams, power lines, and airports.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned 0.92%. On a Net Asset Value ("NAV") basis, the Fund returned 0.99%. During the same reporting period, the Index returned 1.74%, while the S&P SuperComposite Construction & Engineering Index returned (11.51)%, the S&P SuperComposite Homebuilders Index returned 21.24% and the S&P 500® Index returned 4.73%. The Fund benefited most from positive performance of securities of companies in home improvement retail, specialty stores, and homebuilding sub-industries. The Fund was hurt most from negative performance of securities of companies in construction & engineering, building products, and oil & gas equipment & services sub-industries.
At the single stock level, the Fund benefited most from exposure to Tractor Supply Co. (portfolio average weight of 5.15%), Lowe's Cos. Inc. (portfolio average weight of 3.82%), and Home Depot, Inc. (The) (portfolio average weight of 5.10%). The leading detractors to the Fund were Tutor Perini Corp., Matrix Service Co., and MYR Group, Inc. (these stocks were no longer held at April 30, 2012).
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Engineering & Construction | 19.3 | ||||||
Retail | 16.6 | ||||||
Building Materials | 15.7 | ||||||
Home Builders | 12.0 | ||||||
Distribution/Wholesale | 5.6 | ||||||
Textiles | 5.2 | ||||||
Mining | 4.5 | ||||||
Metal Fabricate/Hardware | 3.0 | ||||||
Machinery-Diversified | 2.9 | ||||||
Real Estate | 2.9 | ||||||
Environmental Control | 2.8 | ||||||
Commercial Services | 2.7 | ||||||
Forest Products & Paper | 2.4 | ||||||
Holding Companies-Diversified | 2.3 | ||||||
Machinery-Construction & Mining | 2.1 | ||||||
Money Market Fund | 0.4 | ||||||
Liabilities in excess of other assets | (0.4 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Mid-Cap Growth | 31.1 | ||||||
Small-Cap Growth | 21.7 | ||||||
Small-Cap Value | 21.1 | ||||||
Mid-Cap Value | 15.1 | ||||||
Large-Cap Growth | 11.0 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
D.R. Horton, Inc. | 5.7 | ||||||
Tractor Supply Co. | 5.7 | ||||||
Lowe's Cos., Inc. | 5.6 | ||||||
Home Depot, Inc. (The) | 5.3 | ||||||
Mohawk Industries, Inc. | 5.2 | ||||||
Jacobs Engineering Group, Inc. | 4.5 | ||||||
Vulcan Materials Co. | 4.5 | ||||||
KBR, Inc. | 4.5 | ||||||
Ryland Group, Inc. | 3.3 | ||||||
PulteGroup, Inc. | 3.1 | ||||||
Total | 47.4 |
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, 2012 | ||||||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Dynamic Building & Construction IntellidexSM Index | 1.74 | % | 12.32 | % | (3.47 | )% | 0.78 | % | 5.16 | % | |||||||||||||
S&P SuperComposite Construction & Engineering Index | (11.51 | )% | 7.10 | % | 0.21 | % | 7.09 | % | 56.04 | % | |||||||||||||
S&P SuperComposite Homebuilders Index | 21.24 | % | 9.12 | % | (10.84 | )% | (12.63 | )% | (58.42 | )% | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 4.46 | % | 32.80 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | 0.99 | % | 11.49 | % | (4.10 | )% | (0.08 | )% | (0.54 | )% | |||||||||||||
Share Price Return | 0.92 | % | 11.34 | % | (4.14 | )% | (0.13 | )% | (0.82 | )% |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.91%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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 SuperComposite 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 13, 11 and 500 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from 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 generally correspond (before fees and expenses) to the price and yield of the Dynamic Energy Exploration & Production IntellidexSM Index (the "Index"). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index. The Index thoroughly evaluates companies based on a variety of investment merit criteria, including: price momentum, earnings momentum, quality, management action and value.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned (9.83)%. On a Net Asset Value ("NAV") basis, the Fund returned (9.86)%. During the same reporting period, the Index returned (9.23)%, while the S&P SuperComposite Oil & Gas Exploration & Production Index returned (16.87)% and the S&P 500® Index returned 4.73%. The Fund benefited most from positive performance of securities of companies in oil & gas refining & marketing and gas utilities sub-industries. The Fund was hurt most from negative performance of securities of companies in oil & gas exploration & production sub-industry.
At the single stock level, the Fund benefited most from exposure to CVR Energy, Inc. (portfolio average weight of 2.90%), Marathon Petroleum Corp. (portfolio average weight of 2.08%), and HollyFronteir Corp. (portfolio average weight of 3.38%). The leading detractors to the Fund were Murphy Oil Corp. (portfolio average weight of 2.69%), Apache Corp. (portfolio average weight of 2.01%), and Clayton Williams Energy, Inc. (portfolio average weight of 0.61%).
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Oil Companies-Exploration & Production | 51.9 | ||||||
Oil Companies-Integrated | 27.9 | ||||||
Oil Refining & Marketing | 20.2 | ||||||
Money Market Fund | 0.2 | ||||||
Liabilities in excess of other assets | (0.2 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Large-Cap Value | 30.3 | ||||||
Small-Cap Value | 23.0 | ||||||
Mid-Cap Value | 15.7 | ||||||
Mid-Cap Growth | 11.3 | ||||||
Large-Cap Growth | 9.9 | ||||||
Small-Cap Growth | 9.8 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
Valero Energy Corp. | 5.4 | ||||||
Exxon Mobil Corp. | 5.3 | ||||||
Chevron Corp. | 5.3 | ||||||
Marathon Petroleum Corp. | 5.2 | ||||||
ConocoPhillips | 5.1 | ||||||
Occidental Petroleum Corp. | 4.7 | ||||||
Apache Corp. | 4.6 | ||||||
Marathon Oil Corp. | 4.5 | ||||||
Delek US Holdings, Inc. | 3.6 | ||||||
Gran Tierra Energy, Inc. | 3.3 | ||||||
Total | 47.0 |
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, 2012 | ||||||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Dynamic Energy Exploration & Production IntellidexSM Index | (9.23 | )% | 25.08 | % | 4.29 | % | 8.05 | % | 65.58 | % | |||||||||||||
S&P SuperComposite Oil & Gas Exploration & Production Index | (16.87 | )% | 15.49 | % | 4.78 | % | 7.05 | % | 55.70 | % | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 4.46 | % | 32.80 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | (9.86 | )% | 24.18 | % | 3.60 | % | 7.40 | % | 59.19 | % | |||||||||||||
Share Price Return | (9.83 | )% | 24.23 | % | 3.61 | % | 7.38 | % | 58.93 | % |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.76%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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 35 and 500 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from 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 generally correspond (before fees and expenses) to the price and yield of the Dynamic Food & Beverage IntellidexSM Index (the "Index"). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index. The Index is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including: price momentum, earnings momentum, quality, management action, and value. The Index is composed of stocks of 30 U.S. food and beverage companies. These are companies that are principally engaged in the manufacture, sale or distribution of sale or distribution of food and beverage products, agricultural products and products related to the development of new food technologies.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned 0.77%. On a Net Asset Value ("NAV") basis, the Fund returned 1.02%. During the same reporting period, the Index returned 1.74%, while the S&P SuperComposite Food Beverage & Tobacco Index returned 15.00% and the S&P 500® Index returned 4.73%. The Fund benefited from positive performance of securities of companies in the consumer discretionary sub-industry. The Fund was hurt most from negative performance of securities of companies in the consumer staples sub-industry.
At the single stock level, the Fund benefited most from exposure to Monster Beverage Corp. (portfolio average weight of 2.96%), Domino's Pizza, Inc. (no longer held at April 30, 2012), and Mead Johnson Nutrition Co. (portfolio average weight of 5.07%). The leading detractors to the Fund were Green Mountain Coffee Roasters, Inc., Dole Food Co., Inc., and Winn-Dixie Stores, Inc. (these stocks were no longer held at April 30, 2012).
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Food-Miscellaneous/Diversified | 27.0 | ||||||
Retail-Restaurants | 16.5 | ||||||
Food-Retail | 13.5 | ||||||
Agricultural Operations | 7.5 | ||||||
Beverages-Wine/Spirits | 5.7 | ||||||
Food-Wholesale/Distribution | 5.6 | ||||||
Vitamins & Nutrition Products | 5.6 | ||||||
Food-Meat Products | 5.1 | ||||||
Agricultural Chemicals | 4.9 | ||||||
Beverages-Non-alcoholic | 3.2 | ||||||
Food-Dairy Products | 2.8 | ||||||
Brewery | 2.6 | ||||||
Money Market Fund | 0.0 | ||||||
Other assets less liabilities | 0.0 |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Large-Cap Value | 29.1 | ||||||
Mid-Cap Value | 21.9 | ||||||
Small-Cap Value | 19.5 | ||||||
Large-Cap Growth | 18.3 | ||||||
Mid-Cap Growth | 8.3 | ||||||
Small-Cap Growth | 2.9 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
Yum! Brands, Inc. | 5.6 | ||||||
Mead Johnson Nutrition Co. | 5.6 | ||||||
Kraft Foods, Inc. | 5.4 | ||||||
General Mills, Inc. | 5.2 | ||||||
Kroger Co. (The) | 5.0 | ||||||
McDonald's Corp. | 4.9 | ||||||
Archer-Daniels-Midland Co. | 4.9 | ||||||
Monsanto Co. | 4.9 | ||||||
Monster Beverage Corp. | 3.2 | ||||||
Papa John's International, Inc. | 3.0 | ||||||
Total | 47.7 |
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, 2012 | ||||||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Dynamic Food & Beverage IntellidexSM Index | 1.74 | % | 18.27 | % | 4.93 | % | 6.54 | % | 54.37 | % | |||||||||||||
S&P SuperComposite Food Beverage & Tobacco Index | 15.00 | % | 25.67 | % | 10.96 | % | 12.52 | % | 123.96 | % | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 4.52 | % | 35.29 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | 1.02 | % | 17.38 | % | 4.19 | % | 5.83 | % | 47.42 | % | |||||||||||||
Share Price Return | 0.77 | % | 17.35 | % | 4.18 | % | 5.83 | % | 47.42 | % |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.71%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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 50 and 500 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from the closest month-end to the Fund's inception date.
†† Average Annualized.
13
Manager's Analysis
PowerShares Dynamic Insurance Portfolio (ticker: PIC)
The PowerShares Dynamic Insurance Portfolio (the "Fund") seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dynamic Insurance IntellidexSM Index (the "Index"). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index. The Index thoroughly evaluates companies based on a variety of investment merit criteria, including: price momentum, earnings momentum, quality, management action, and value. The Index is composed of stocks of 30 U.S. insurance companies. These are companies that are principally engaged in underwriting or distributing and reselling life, health and property/casualty insurance policies.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned (2.85)%. On a Net Asset Value ("NAV") basis, the Fund returned (2.85)%. During the same reporting period, the Index returned (2.15)%, while the S&P SuperComposite Insurance Index returned (2.55)% and the S&P 500® Index returned 4.73%. The Fund benefited most from positive performance of securities of companies in the property & casualty insurance sub-industry. The Fund was hurt most from negative performance of securities of companies in life & health insurance and multi-line insurance sub-industries.
At the single stock level, the Fund benefited most from exposure to Allstate Corp. (The) (no longer held at April 30, 2012), AmTrust Financial Services, Inc. (portfolio average weight of 2.77%), and Protective Life Corp. (portfolio average weight of 2.05%). The leading detractors to the Fund were Prudential Financial, Inc. (portfolio average weight of 3.78%), Hartford Financial Services Group, Inc. (The). (no longer held at April 30, 2012), and Lincoln National Corp. (portfolio average weight of 3.49%).
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Property/Casualty Insurance | 43.2 | ||||||
Life/Health Insurance | 26.1 | ||||||
Multi-line Insurance | 25.3 | ||||||
Insurance Brokers | 2.9 | ||||||
Investment Management/Advisor Services | 2.5 | ||||||
Money Market Fund | 1.2 | ||||||
Liabilities in excess of other assets | (1.2 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Large-Cap Value | 35.2 | ||||||
Small-Cap Value | 31.6 | ||||||
Mid-Cap Value | 27.4 | ||||||
Small-Cap Growth | 5.8 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
Travelers Cos., Inc. (The) | 5.4 | ||||||
CNA Financial Corp. | 5.3 | ||||||
Chubb Corp. (The) | 5.3 | ||||||
ACE Ltd. | 5.1 | ||||||
Progressive Corp. (The) | 4.9 | ||||||
Prudential Financial, Inc. | 4.9 | ||||||
Aflac, Inc. | 4.8 | ||||||
MetLife, Inc. | 4.7 | ||||||
AMERISAFE, Inc. | 3.1 | ||||||
Fidelity National Financial, Inc. | 3.0 | ||||||
Total | 46.5 |
14
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, 2012 | ||||||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Dynamic Insurance IntellidexSM Index | (2.15 | )% | 14.93 | % | (0.47 | )% | 3.03 | % | 21.48 | % | |||||||||||||
S&P SuperComposite Insurance Index | (2.55 | )% | 16.45 | % | (10.87 | )% | (6.04 | )% | (33.32 | )% | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 4.46 | % | 32.80 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | (2.85 | )% | 14.10 | % | (1.13 | )% | 2.38 | % | 16.56 | % | |||||||||||||
Share Price Return | (2.85 | )% | 14.26 | % | (1.13 | )% | 2.38 | % | 16.56 | % |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 1.36%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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 56 and 500 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from the closest month-end to the Fund's inception date.
†† Average Annualized.
15
Manager's Analysis
PowerShares Dynamic Leisure and Entertainment Portfolio (ticker: PEJ)
The PowerShares Dynamic Leisure and Entertainment Portfolio (the "Fund") seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dynamic Leisure and Entertainment IntellidexSM Index (the "Index"). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index. The Index is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including: price momentum, earnings momentum, quality, management action, and value. The Index is composed of stocks of 30 U.S. leisure and entertainment companies. These are companies that are principally engaged in the design, production or distribution of goods or services in the leisure and entertainment industries.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned 15.59%. On a Net Asset Value ("NAV") basis, the Fund returned 15.49%. During the same reporting period, the Index returned 16.41%, while the S&P SuperComposite Hotels, Restaurants & Leisure Index returned 24.74% and the S&P 500® Index returned 4.73%. The Fund benefited most from positive performance of securities of companies in restaurants, broadcasting, and internet retail sub-industries. The Fund was hurt most from negative performance of securities of companies in internet software & services and movies & entertainment sub-industries.
At the single stock level, the Fund benefited most from exposure to Starbucks Corp. (portfolio average weight of 5.32%), Yum! Brands, Inc. (portfolio average weight of 5.07%), and Chipotle Mexican Grill, Inc. (portfolio average weight of 4.19%). The leading detractors to the Fund were Travelzoo, Inc., Sonic Corp., and Wynn Resorts Ltd. (these stocks were no longer held at April 30, 2012).
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Retail | 52.3 | ||||||
Media | 16.9 | ||||||
Entertainment | 14.4 | ||||||
Internet | 6.0 | ||||||
Lodging | 5.1 | ||||||
Food | 3.1 | ||||||
Leisure Time | 2.2 | ||||||
Money Market Fund | 0.1 | ||||||
Liabilities in excess of other assets | (0.1 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Small-Cap Value | 29.4 | ||||||
Large-Cap Growth | 21.6 | ||||||
Small-Cap Growth | 19.3 | ||||||
Large-Cap Value | 19.0 | ||||||
Mid-Cap Growth | 7.8 | ||||||
Mid-Cap Value | 2.9 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
Priceline.com, Inc. | 6.0 | ||||||
Starbucks Corp. | 5.5 | ||||||
CBS Corp., Class B | 5.2 | ||||||
Yum! Brands, Inc. | 5.1 | ||||||
Chipotle Mexican Grill, Inc. | 5.0 | ||||||
Walt Disney Co. (The) | 4.8 | ||||||
Viacom, Inc. | 4.5 | ||||||
McDonald's Corp. | 4.5 | ||||||
Marriott Vacations Worldwide Corp. | 3.1 | ||||||
Domino's Pizza, Inc. | 3.1 | ||||||
Total | 46.8 |
16
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, 2012 | ||||||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Dynamic Leisure and Entertainment IntellidexSM Index | 16.41 | % | 29.84 | % | 5.72 | % | 7.75 | % | 66.82 | % | |||||||||||||
S&P SuperComposite Hotels, Restaurants & Leisure Index | 24.74 | % | 29.31 | % | 10.37 | % | 11.59 | % | 111.57 | % | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 4.52 | % | 35.29 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | 15.49 | % | 28.54 | % | 5.22 | % | 7.19 | % | 60.94 | % | |||||||||||||
Share Price Return | 15.59 | % | 28.66 | % | 5.23 | % | 7.21 | % | 61.13 | % |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.78%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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 44 and 500 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from the closest month-end to the Fund's inception date.
†† Average Annualized.
17
Manager's Analysis
PowerShares Dynamic Media Portfolio (ticker: PBS)
The PowerShares Dynamic Media Portfolio (the "Fund") seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dynamic Media IntellidexSM Index (the "Index"). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index. The Index is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including: price momentum, earnings momentum, quality, management action, and value. The Index is composed of stocks of 30 U.S. media companies. These are companies that are principally engaged in the development, production, sale and distribution of goods or services used in the media industry.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned (4.33)%. On a Net Asset Value ("NAV") basis, the Fund returned (4.33)%. During the same reporting period, the Index returned (3.70)%, while the S&P SuperComposite Media Index returned 6.58% and the S&P 500® Index returned 4.73%. The Fund benefited most from positive performance of securities of companies in data processing & outsourced services, broadcasting, and movies & entertainment sub-industries. The Fund was hurt most from negative performance of securities of companies in internet software & services, advertising, and internet retail sub-industries.
At the single stock level, the Fund benefited most from exposure to CBS Corp (portfolio average weight of 5.16%), Lions Gate Entertainment Corp. (portfolio average weight of 1.10%), and McGraw-Hill Cos. Inc. (portfolio average weight of 3.72%). The leading detractors to the Fund were Ancestry.com, Inc. (no longer held at April 30, 2012), Valassis Communications, Inc. (portfolio average weight of 0.97%), and HomeAway, Inc. (no longer held at April 30, 2012).
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Multimedia | 20.5 | ||||||
Television | 13.3 | ||||||
Web Portals/ISP | 11.5 | ||||||
Cable/Satellite TV | 8.4 | ||||||
Publishing-Books | 8.2 | ||||||
E-Commerce/Services | 5.8 | ||||||
Advertising Sales | 5.8 | ||||||
Advertising Agencies | 5.8 | ||||||
Commercial Services | 2.9 | ||||||
E-Marketing/Information | 2.8 | ||||||
Retail-Discount | 2.8 | ||||||
Internet Content-Information/News | 2.6 | ||||||
Publishing-Newspapers | 2.5 | ||||||
Diversified Operations/Commercial Services | 2.5 | ||||||
Motion Pictures & Services | 2.4 | ||||||
Printing-Commercial | 2.2 | ||||||
Money Market Fund | 8.0 | ||||||
Liabilities in excess of other assets | (8.0 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Large-Cap Value | 40.0 | ||||||
Mid-Cap Growth | 16.8 | ||||||
Small-Cap Value | 15.2 | ||||||
Small-Cap Growth | 11.9 | ||||||
Mid-Cap Value | 8.1 | ||||||
Large-Cap Growth | 8.0 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
CBS Corp., Class B | 5.7 | ||||||
McGraw-Hill Cos., Inc. (The) | 5.4 | ||||||
Walt Disney Co. (The) | 5.3 | ||||||
Comcast Corp., Class A | 5.3 | ||||||
News Corp., Class A | 5.1 | ||||||
Time Warner, Inc. | 5.1 | ||||||
Google, Inc., Class A | 5.1 | ||||||
Viacom, Inc., Class B | 5.0 | ||||||
AOL, Inc. | 3.8 | ||||||
DISH Network Corp. | 3.1 | ||||||
Total | 48.9 |
18
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, 2012 | ||||||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Dynamic Media IntellidexSM Index | (3.70 | )% | 23.51 | % | (0.85 | )% | 1.07 | % | 7.58 | % | |||||||||||||
S&P SuperComposite Media Index | 6.58 | % | 28.74 | % | 2.43 | % | 4.95 | % | 39.13 | % | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 4.52 | % | 35.29 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | (4.33 | )% | 22.26 | % | (1.29 | )% | 0.55 | % | 3.83 | % | |||||||||||||
Share Price Return | (4.33 | )% | 22.21 | % | (1.28 | )% | 0.55 | % | 3.83 | % |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.69%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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 30 and 500 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from the closest month-end to the Fund's inception date.
†† Average Annualized.
19
Manager's Analysis
PowerShares Dynamic Networking Portfolio (ticker: PXQ)
The PowerShares Dynamic Networking Portfolio (the "Fund") seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dynamic Networking IntellidexSM Index (the "Index"). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index. The Index is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including price momentum, earnings momentum, quality, management action, and value.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned (5.20)%. On a Net Asset Value ("NAV") basis, the Fund returned (5.10)%. During the same reporting period, the Index returned (4.41)%, while the S&P SuperComposite Communications Equipment Index returned 6.23% and the S&P 500® Index returned 4.73%. The Fund benefited most from positive performance of securities of companies in application software and electronic components sub-industries. The Fund was hurt most from negative performance of securities of companies in the communications equipment sub-industry.
At the single stock level, the Fund benefited most from exposure to SolarWinds, Inc. (portfolio average weight of 2.78%), Netlogic Microsystems Inc. (no longer held at April 30, 2012), and Sourcefire, Inc. (portfolio average weight of 1.86%). The leading detractors to the Fund were Acme Packet, Inc. (no longer held at April 30, 2012), Juniper Networks, Inc. (portfolio average weight of 4.51%), and Calix, Inc. (no longer held at April 30, 2012).
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Telecommunications | 37.9 | ||||||
Software | 17.0 | ||||||
Semiconductors | 13.0 | ||||||
Internet | 11.7 | ||||||
Computers | 9.9 | ||||||
Electronics | 5.3 | ||||||
Electrical Components & Equipment | 5.2 | ||||||
Money Market Fund | 0.2 | ||||||
Liabilities in excess of other assets | (0.2 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Small-Cap Growth | 41.5 | ||||||
Large-Cap Growth | 27.0 | ||||||
Mid-Cap Growth | 26.0 | ||||||
Small-Cap Value | 5.5 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
Citrix Systems, Inc. | 5.8 | ||||||
VMware, Inc., Class A | 5.7 | ||||||
F5 Networks, Inc. | 5.3 | ||||||
Amphenol Corp. | 5.3 | ||||||
Motorola Solutions, Inc. | 5.3 | ||||||
QUALCOMM, Inc. | 5.1 | ||||||
Cisco Systems, Inc. | 5.1 | ||||||
Juniper Networks, Inc. | 4.6 | ||||||
SolarWinds, Inc. | 3.3 | ||||||
Websense, Inc. | 3.2 | ||||||
Total | 48.7 |
20
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, 2012 | ||||||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Dynamic Networking IntellidexSM Index | (4.41 | )% | 27.96 | % | 9.08 | % | 10.17 | % | 94.24 | % | |||||||||||||
S&P SuperComposite Communications Equipment Index | 6.23 | % | 10.28 | % | (0.73 | )% | 3.29 | % | 24.77 | % | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 4.52 | % | 35.29 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | (5.10 | )% | 27.07 | % | 8.29 | % | 9.48 | % | 85.98 | % | |||||||||||||
Share Price Return | (5.20 | )% | 26.96 | % | 8.27 | % | 9.46 | % | 85.78 | % |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.70%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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 25 and 500 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from the closest month-end to the Fund's inception date.
†† Average Annualized.
21
Manager's Analysis
PowerShares Dynamic Oil & Gas Services Portfolio (ticker: PXJ)
The PowerShares Dynamic Oil & Gas Services Portfolio (the "Fund") seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dynamic Oil Services IntellidexSM Index (the "Index"). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index. The Index thoroughly evaluates companies based on a variety of investment merit criteria, including: price momentum, earnings momentum, quality, management action, and value. Securities shown to possess the greatest capital appreciation potential are selected by the Index.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned (22.36)%. On a Net Asset Value ("NAV") basis, the Fund returned (22.36)%. During the same reporting period, the Index returned (21.81)%, while the S&P SuperComposite Energy Equipment & Services Index returned (19.03)% and the S&P 500® Index returned 4.73%. The Fund benefited from positive performance of securities of companies in specialty chemicals and oil & gas storage & transportation sub-industries. The Fund was hurt most from negative performance of securities of companies in oil & gas equipment & services and oil & gas drilling sub-industries.
At the single stock level, the Fund benefited most from exposure to Hornbeck Offshore Services, Inc. (portfolio average weight of 2.80%), Core Laboratories NV (portfolio average weight of 2.83%), and Oceaneering International, Inc. (portfolio average weight of 2.83%). The leading detractors to the Fund were Nabors Industries Ltd. (portfolio average weight of 4.16%), Baker Hughes, Inc. (no longer held at April 30, 2012), and Halliburton Co. (portfolio average weight of 4.86%).
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Oil-Field Services | 45.1 | ||||||
Oil & Gas Drilling | 24.5 | ||||||
Oil Field Machinery & Equipment | 15.9 | ||||||
Transportation-Marine | 5.4 | ||||||
Seismic Data Collection | 3.0 | ||||||
Transportation-Services | 3.0 | ||||||
Marine Services | 3.0 | ||||||
Money Market Fund | 0.1 | ||||||
Liabilities in excess of other assets | (0.0 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Small-Cap Value | 24.9 | ||||||
Mid-Cap Growth | 24.3 | ||||||
Small-Cap Growth | 18.9 | ||||||
Mid-Cap Value | 16.9 | ||||||
Large-Cap Growth | 10.1 | ||||||
Large-Cap Value | 4.9 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
Diamond Offshore Drilling, Inc. | 5.7 | ||||||
Schlumberger Ltd. | 5.1 | ||||||
FMC Technologies, Inc. | 5.0 | ||||||
Halliburton Co. | 4.9 | ||||||
National Oilwell Varco, Inc. | 4.9 | ||||||
Weatherford International Ltd. | 4.8 | ||||||
Helmerich & Payne, Inc. | 4.5 | ||||||
Nabors Industries Ltd. | 4.1 | ||||||
Flotek Industries, Inc. | 3.6 | ||||||
Core Laboratories NV | 3.2 | ||||||
Total | 45.8 |
22
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, 2012 | ||||||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Dynamic Oil Services IntellidexSM Index | (21.81 | )% | 17.32 | % | (1.14 | )% | 4.23 | % | 30.99 | % | |||||||||||||
S&P SuperComposite Energy Equipment & Services Index | (19.03 | )% | 20.78 | % | 1.31 | % | 6.31 | % | 48.87 | % | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 4.46 | % | 32.80 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | (22.36 | )% | 16.43 | % | (1.79 | )% | 3.64 | % | 26.23 | % | |||||||||||||
Share Price Return | (22.36 | )% | 16.37 | % | (1.79 | )% | 3.64 | % | 26.23 | % |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.64%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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 34 and 500 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from the closest month-end to the Fund's inception date.
†† Average Annualized.
23
Manager's Analysis
PowerShares Dynamic Pharmaceuticals Portfolio (ticker: PJP)
The PowerShares Dynamic Pharmaceuticals Portfolio (the "Fund") seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dynamic Pharmaceuticals IntellidexSM Index (the "Index"). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index. The Index is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including: price momentum, earnings momentum, quality, management action, and value. The Index is composed of stocks of 30 U.S. pharmaceuticals companies. These are companies that are principally engaged in the research, development, manufacture, sale or distribution of pharmaceuticals and drugs of all types.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned 23.16%. On a Net Asset Value ("NAV") basis, the Fund returned 23.29%. During the same reporting period, the Index returned 24.09%, while the S&P SuperComposite Pharmaceuticals Index returned 12.17% and the S&P 500® Index returned 4.73%. The Fund benefited most from positive performance of securities of companies in pharmaceuticals and biotechnology sub-industries. The Fund was hurt from negative performance of securities of companies in the health care equipment sub-industry.
At the single stock level, the Fund benefited most from exposure to VIVUS, Inc. (portfolio average weight of 2.20%), Questcor Pharmaceuticals Inc. (portfolio average weight of 3.00%), and Akorn, Inc. (portfolio average weight of 2.89%). The leading detractors to the Fund were Depomed, Inc. (no longer held at April 30, 2012), Hospira, Inc. (no longer held at April 30, 2012), and Hi-Tech Pharmacal Co., Inc. (portfolio average weight of 1.73%).
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Medical-Drugs | 53.6 | ||||||
Medical-Biomedical/Genetics | 20.5 | ||||||
Medical-Generic Drugs | 14.3 | ||||||
Therapeutics | 6.5 | ||||||
Consumer Products-Miscellaneous | 2.6 | ||||||
Medical Products | 2.5 | ||||||
Money Market Fund | 0.0 | ||||||
Other assets less liabilities | 0.0 |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Large-Cap Growth | 26.5 | ||||||
Large-Cap Value | 24.8 | ||||||
Small-Cap Growth | 20.0 | ||||||
Mid-Cap Growth | 17.8 | ||||||
Small-Cap Value | 5.6 | ||||||
Mid-Cap Value | 5.3 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
Gilead Sciences, Inc. | 5.5 | ||||||
Abbott Laboratories | 5.2 | ||||||
Pfizer, Inc. | 5.2 | ||||||
Eli Lilly & Co. | 5.0 | ||||||
Amgen, Inc. | 5.0 | ||||||
Merck & Co., Inc. | 4.9 | ||||||
Bristol-Myers Squibb Co. | 4.9 | ||||||
Johnson & Johnson | 4.8 | ||||||
Warner Chilcott PLC, Class A | 3.5 | ||||||
Watson Pharmaceuticals, Inc. | 3.4 | ||||||
Total | 47.4 |
24
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, 2012 | ||||||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Dynamic Pharmaceuticals IntellidexSM Index | 24.09 | % | 34.19 | % | 11.96 | % | 13.35 | % | 135.95 | % | |||||||||||||
S&P SuperComposite Pharmaceuticals Index | 12.17 | % | 19.32 | % | 3.46 | % | 5.17 | % | 41.08 | % | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 4.52 | % | 35.29 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | 23.29 | % | 33.27 | % | 11.16 | % | 12.64 | % | 126.09 | % | |||||||||||||
Share Price Return | 23.16 | % | 33.22 | % | 11.17 | % | 12.65 | % | 126.17 | % |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.76%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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 21 and 500 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from the closest month-end to the Fund's inception date.
†† Average Annualized.
25
Manager's Analysis
PowerShares Dynamic Retail Portfolio (ticker: PMR)
The PowerShares Dynamic Retail Portfolio (the "Fund") seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dynamic Retail IntellidexSM Index (the "Index"). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index. The Index thoroughly evaluates companies based on a variety of investment merit criteria, including: price momentum, earnings momentum, quality, management action, and value. The Index is composed of stocks of 30 U.S. retailers. These are companies that are principally engaged in operating general merchandise stores such as department stores, discount stores, warehouse clubs and superstores; specialty stores, including apparel, electronics, accessories and footwear stores; and home improvement and home furnishings stores.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned 19.95%. On a Net Asset Value ("NAV") basis, the Fund returned 20.06%. During the same reporting period, the Index returned 20.88%, while the S&P SuperComposite Retailing Index returned 21.45% and the S&P 500® Index returned 4.73%. The Fund benefited most from positive performance of securities of companies in specialty stores, hypermarkets & super centers, and department stores sub-industries. The Fund was hurt most from negative performance of securities of companies in drug retail, internet retail, and computer & electronics retail sub-industries.
At the single stock level, the Fund benefited most from exposure to PriceSmart, Inc. (portfolio average weight of 3.04%), Liquidity Services, Inc. (portfolio average weight of 2.07%), and Dollar Tree, Inc. (portfolio average weight of 3.24%). The leading detractors to the Fund were Walgreen Co. (no longer held at April 30, 2012), Avis Budget Group, Inc. (portfolio average weight of 1.70%), and Wet Seal, Inc. (The) (no longer held at April 30, 2012).
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Retail-Discount | 15.4 | ||||||
Food-Retail | 15.1 | ||||||
Retail-Auto Parts | 8.8 | ||||||
Retail-Miscellaneous/Diversified | 6.2 | ||||||
Retail-Apparel/Shoe | 6.1 | ||||||
Retail-Major Department Store | 5.6 | ||||||
Rental Auto/Equipment | 5.4 | ||||||
Retail-Regional Deptment Store | 5.3 | ||||||
Retail-Building Products | 5.3 | ||||||
E-Marketing/Information | 3.2 | ||||||
E-Commerce/Products | 2.9 | ||||||
Retail-Home Furnishings | 2.7 | ||||||
Retail-Video Rental | 2.7 | ||||||
Home Furnishings | 2.7 | ||||||
Food-Wholesale/Distribution | 2.6 | ||||||
Retail-Computer Equipment | 2.6 | ||||||
Transportation-Equipment & Leasing | 2.5 | ||||||
Retail-Drug Store | 2.5 | ||||||
E-Commerce/Services | 2.4 | ||||||
Money Market Fund | 0.2 | ||||||
Liabilities in excess of other assets | (0.2 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Large-Cap Growth | 29.9 | ||||||
Small-Cap Growth | 22.1 | ||||||
Small-Cap Value | 18.5 | ||||||
Mid-Cap Value | 11.2 | ||||||
Large-Cap Value | 10.1 | ||||||
Mid-Cap Growth | 8.2 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
O'Reilly Automotive, Inc. | 5.9 | ||||||
TJX Cos., Inc. (The) | 5.6 | ||||||
Dollar Tree, Inc. | 5.6 | ||||||
Macy's, Inc. | 5.3 | ||||||
Home Depot, Inc. (The) | 5.3 | ||||||
Costco Wholesale Corp. | 5.0 | ||||||
Wal-Mart Stores, Inc. | 4.8 | ||||||
Kroger Co. (The) | 4.8 | ||||||
Gap, Inc. (The) | 3.3 | ||||||
PriceSmart, Inc. | 3.2 | ||||||
Total | 48.8 |
26
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, 2012 | ||||||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Dynamic Retail IntellidexSM Index | 20.88 | % | 23.04 | % | 6.88 | % | 10.05 | % | 86.53 | % | |||||||||||||
S&P SuperComposite Retailing Index | 21.45 | % | 27.27 | % | 6.78 | % | 8.06 | % | 65.54 | % | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 4.46 | % | 32.80 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | 20.06 | % | 22.22 | % | 6.22 | % | 9.40 | % | 79.45 | % | |||||||||||||
Share Price Return | 19.95 | % | 22.22 | % | 6.20 | % | 9.39 | % | 79.33 | % |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 1.63%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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 92 and 500 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from the closest month-end to the Fund's inception date.
†† Average Annualized.
27
Manager's Analysis
PowerShares Dynamic Semiconductors Portfolio (ticker: PSI)
The PowerShares Dynamic Semiconductors Portfolio (the "Fund") seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dynamic Semiconductors IntellidexSM Index (the "Index"). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index. The Index is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including: price momentum, earnings momentum, quality, management action, and value. The Index is composed of stocks of 30 U.S. semiconductors companies. These are companies that are principally engaged in the manufacture of semiconductors. These companies may include, for example, companies involved in all aspects of the electronics business and in new technologies or specialty areas, including advanced design and manufacturing technologies, and lasers and electro-optics.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned (13.47)%. On a Net Asset Value ("NAV") basis, the Fund returned (13.20)%. During the same reporting period, the Index returned (12.63)%, while the S&P SuperComposite Semiconductor Index returned (0.50)% and the S&P 500® Index returned 4.73%. The Fund benefited most from positive performance of securities of companies in the electronic equipment & instruments sub-industry. The Fund was hurt most from negative performance of securities of companies in semiconductors and semiconductor equipment sub-industries.
At the single stock level, the Fund benefited most from exposure to Intel Corp. (portfolio average weight of 3.94%), Cirrus Logic, Inc. (portfolio average weight of 1.20%), and KLA-Tencor Corp. (portfolio average weight of 5.31%). The leading detractors to the Fund were Atmel Corp., Micron Technology, Inc., and InterDigital, Inc. (these stocks were no longer held at April 30, 2012).
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Electronic Components-Semiconductors | 35.4 | ||||||
Semiconductor Equipment | 33.0 | ||||||
Semiconductor Components-Integrated Circuits | 26.0 | ||||||
Instruments-Scientific | 3.1 | ||||||
Lasers-Systems/Components | 2.6 | ||||||
Money Market Fund | 0.5 | ||||||
Liabilities in excess of other assets | (0.6 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Small-Cap Growth | 45.8 | ||||||
Mid-Cap Growth | 39.0 | ||||||
Large-Cap Growth | 15.2 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
KLA-Tencor Corp. | 5.4 | ||||||
Intel Corp. | 5.3 | ||||||
Maxim Integrated Products, Inc. | 5.2 | ||||||
QUALCOMM, Inc. | 5.0 | ||||||
Analog Devices, Inc. | 5.0 | ||||||
Broadcom Corp., Class A | 4.9 | ||||||
Linear Technology Corp. | 4.9 | ||||||
Xilinx, Inc. | 4.8 | ||||||
Cirrus Logic, Inc. | 3.2 | ||||||
Kulicke & Soffa Industries, Inc. | 3.2 | ||||||
Total | 46.9 |
28
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, 2012 | ||||||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Dynamic Semiconductors IntellidexSM Index | (12.63 | )% | 16.03 | % | (2.74 | )% | 1.69 | % | 12.20 | % | |||||||||||||
S&P SuperComposite Semiconductor Index | (0.50 | )% | 21.46 | % | 3.08 | % | 2.76 | % | 20.46 | % | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 4.52 | % | 35.29 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | (13.20 | )% | 15.23 | % | (3.46 | )% | 0.99 | % | 7.00 | % | |||||||||||||
Share Price Return | (13.47 | )% | 15.13 | % | (3.52 | )% | 0.95 | % | 6.66 | % |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.97%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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 42 and 500 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from the closest month-end to the Fund's inception date.
†† Average Annualized.
29
Manager's Analysis
PowerShares Dynamic Software Portfolio (ticker: PSJ)
The PowerShares Dynamic Software Portfolio (the "Fund") seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dynamic Software IntellidexSM Index (the "Index"). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index. The Index is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including: price momentum, earnings momentum, quality, management action, and value. The Index is composed of stocks of 30 U.S. software companies. These are companies that are principally engaged in the research, design, production or distribution of products or processes that relate to software applications and systems and information-based services.
For the fiscal year ended April 30, 2012, on a share price basis, the Fund returned (2.22)%. On a Net Asset Value ("NAV") basis, the Fund returned (2.19)%. During the same reporting period, the Index returned (1.55)%, while the S&P SuperComposite Software & Services Index returned 11.13% and the S&P 500® Index returned 4.73%. The Fund benefited most from positive performance of securities of companies in application software, IT consulting & other services, and health care technology sub-industries. The Fund was hurt most from negative performance of securities of companies in systems software, data processing & outsourced services, and communications equipment sub-industries.
At the single stock level, the Fund benefited most from exposure to Cerner Corp. (portfolio average weight of 4.63%), SolarWinds Inc. (portfolio average weight of 1.80%), and Nuance Communications, Inc. (portfolio average weight of 2.30%). The leading detractors to the Fund were Autodesk, Inc., BMC Software, Inc., and VASCO Data Security International, Inc. (these stocks were no longer held at April 30, 2012).
Industry Breakdown (% of the Fund's
Net Assets) as of April 30, 2012
Applications Software | 20.1 | ||||||
Medical Information Systems | 12.9 | ||||||
Enterprise Software/Services | 10.4 | ||||||
Telecommunication Services | 7.6 | ||||||
Data Processing/Management | 5.5 | ||||||
Electronic Design Automation | 5.2 | ||||||
Entertainment Software | 5.2 | ||||||
Electronic Forms | 4.9 | ||||||
Computer Software | 3.2 | ||||||
Communications Software | 3.2 | ||||||
Internet Infrastructure Software | 3.0 | ||||||
Computer Services | 2.9 | ||||||
Internet Content-Information/News | 2.8 | ||||||
Computers-Integrated Systems | 2.7 | ||||||
Motion Pictures & Services | 2.7 | ||||||
Transactional Software | 2.7 | ||||||
Semiconductor Equipment | 2.5 | ||||||
Computer Aided Design | 2.5 | ||||||
Money Market Fund | 0.2 | ||||||
Liabilities in excess of other assets | (0.2 | ) |
Style Allocation (% of the Fund's
Total Investments) as of April 30, 2012
Small-Cap Growth | 35.4 | ||||||
Large-Cap Growth | 30.1 | ||||||
Mid-Cap Growth | 26.7 | ||||||
Small-Cap Value | 7.8 |
Top Ten Fund Holdings (% of the Fund's
Net Assets) as of April 30, 2012
Security | |||||||
Cerner Corp. | 5.4 | ||||||
Activision Blizzard, Inc. | 5.2 | ||||||
Amdocs Ltd. | 5.1 | ||||||
Microsoft Corp. | 5.0 | ||||||
Adobe Systems, Inc. | 4.9 | ||||||
Intuit, Inc. | 4.9 | ||||||
CA, Inc. | 4.8 | ||||||
Nuance Communications, Inc. | 4.7 | ||||||
Medidata Solutions, Inc. | 3.5 | ||||||
SS&C Technologies Holdings, Inc. | 3.2 | ||||||
Total | 46.7 |
30
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, 2012 | ||||||||||||||||||||||
Avg Ann†† | Fund Inception† | ||||||||||||||||||||||
1 Year | 3 Years | 5 Years | Avg Ann†† | Cumulative | |||||||||||||||||||
Index | |||||||||||||||||||||||
Dynamic Software IntellidexSM Index | (1.55 | )% | 21.25 | % | 6.35 | % | 9.55 | % | 86.78 | % | |||||||||||||
S&P SuperComposite Software & Services Index | 11.13 | % | 21.81 | % | 5.59 | % | 7.15 | % | 60.26 | % | |||||||||||||
S&P 500® Index | 4.73 | % | 19.45 | % | 1.00 | % | 4.52 | % | 35.29 | % | |||||||||||||
Fund | |||||||||||||||||||||||
NAV Return | (2.19 | )% | 20.47 | % | 5.67 | % | 8.90 | % | 79.37 | % | |||||||||||||
Share Price Return | (2.22 | )% | 20.47 | % | 5.66 | % | 8.89 | % | 79.25 | % |
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 or sold on the secondary market, may be worth more or less than their original cost. Had the adviser not waived fees and/or reimbursed expenses, performance would have been lower. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2013. According to the Fund's current prospectus, the total gross annual operating expense ratio was indicated as 0.77%. The Financial Highlights section of the Shareholders Report presents the expense ratios based on expenses incurred during the period covered by this report. 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 results that actual 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 111 and 500 common stocks, respectively.
† Fund and Index returns are calculated from the inception date of the Fund. Returns for the Benchmark Indices are calculated from the closest month-end to the Fund's inception date.
†† Average Annualized.
31
Frequency Distribution of Discounts & Premiums
Since Inception through April 30, 2012
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 | 10/12/2006 | 1,398 | 468 | 41 | 9 | 7 | 1 | 3 | ||||||||||||||||||||||||||||||
PBE | PowerShares Dynamic Biotechnology & Genome Portfolio | 6/23/2005 | 1,727 | 580 | 44 | 4 | 1 | 0 | 1 | ||||||||||||||||||||||||||||||
PKB | PowerShares Dynamic Building & Construction Portfolio | 10/26/2005 | 1,640 | 503 | 44 | 15 | 1 | 1 | 2 | ||||||||||||||||||||||||||||||
PXE | PowerShares Dynamic Energy Exploration & Production Portfolio | 10/26/2005 | 1,640 | 658 | 23 | 6 | 1 | 1 | 1 | ||||||||||||||||||||||||||||||
PBJ | PowerShares Dynamic Food & Beverage Portfolio | 6/23/2005 | 1,727 | 735 | 32 | 8 | 3 | 0 | 1 | ||||||||||||||||||||||||||||||
PIC | PowerShares Dynamic Insurance Portfolio | 10/26/2005 | 1,640 | 659 | 30 | 16 | 1 | 3 | 1 | ||||||||||||||||||||||||||||||
PEJ | PowerShares Dynamic Leisure & Entertainment Portfolio | 6/23/2005 | 1,727 | 691 | 30 | 14 | 0 | 0 | 0 | ||||||||||||||||||||||||||||||
PBS | PowerShares Dynamic Media Portfolio | 6/23/2005 | 1,727 | 692 | 33 | 5 | 1 | 0 | 1 | ||||||||||||||||||||||||||||||
PXQ | PowerShares Dynamic Networking Portfolio | 6/23/2005 | 1,727 | 723 | 32 | 10 | 0 | 0 | 1 | ||||||||||||||||||||||||||||||
PXJ | PowerShares Dynamic Oil & Gas Services Portfolio | 10/26/2005 | 1,640 | 632 | 52 | 16 | 0 | 0 | 1 | ||||||||||||||||||||||||||||||
PJP | PowerShares Dynamic Pharmaceuticals Portfolio | 6/23/2005 | 1,727 | 816 | 19 | 9 | 2 | 0 | 0 | ||||||||||||||||||||||||||||||
PMR | PowerShares Dynamic Retail Portfolio | 10/26/2005 | 1,640 | 632 | 32 | 8 | 1 | 0 | 0 | ||||||||||||||||||||||||||||||
PSI | PowerShares Dynamic Semiconductors Portfolio | 6/23/2005 | 1,727 | 642 | 39 | 7 | 2 | 2 | 2 | ||||||||||||||||||||||||||||||
PSJ | PowerShares Dynamic Software Portfolio | 6/23/2005 | 1,727 | 795 | 28 | 12 | 5 | 2 | 1 |
32
Closing Price Below NAV (bps) | |||||||||||||||||||||||||||
Ticker | 0-24 | -25-49 | -50-99 | -100-149 | -150-199 | -200+ | |||||||||||||||||||||
PJB | 801 | 60 | 6 | 0 | 1 | 1 | |||||||||||||||||||||
PBE | 1,022 | 63 | 11 | 1 | 0 | 0 | |||||||||||||||||||||
PKB | 1,005 | 60 | 8 | 0 | 1 | 0 | |||||||||||||||||||||
PXE | 896 | 43 | 7 | 1 | 1 | 2 | |||||||||||||||||||||
PBJ | 925 | 23 | 0 | 0 | 0 | 0 | |||||||||||||||||||||
PIC | 891 | 29 | 4 | 4 | 1 | 1 | |||||||||||||||||||||
PEJ | 967 | 21 | 2 | 0 | 0 | 2 | |||||||||||||||||||||
PBS | 955 | 36 | 3 | 0 | 0 | 1 | |||||||||||||||||||||
PXQ | 927 | 33 | 1 | 0 | 0 | 0 | |||||||||||||||||||||
PXJ | 908 | 24 | 5 | 1 | 1 | 0 | |||||||||||||||||||||
PJP | 860 | 18 | 2 | 0 | 0 | 1 | |||||||||||||||||||||
PMR | 928 | 37 | 2 | 0 | 0 | 0 | |||||||||||||||||||||
PSI | 1,002 | 24 | 3 | 2 | 0 | 2 | |||||||||||||||||||||
PSJ | 870 | 10 | 3 | 0 | 1 | 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. 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, 2012.
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, 2011 | Ending Account Value April 30, 2012 | 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 | $ | 1,211.38 | 0.65 | % | $ | 3.57 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.63 | 0.65 | % | $ | 3.27 | |||||||||||
PowerShares Dynamic Biotechnology & Genome Portfolio Actual | $ | 1,000.00 | $ | 1,096.55 | 0.63 | % | $ | 3.28 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.73 | 0.63 | % | $ | 3.17 | |||||||||||
PowerShares Dynamic Building & Construction Portfolio Actual | $ | 1,000.00 | $ | 1,230.31 | 0.63 | % | $ | 3.49 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.73 | 0.63 | % | $ | 3.17 |
34
Fees and Expenses (Continued)
Beginning Account Value November 1, 2011 | Ending Account Value April 30, 2012 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period (1) | ||||||||||||||||
PowerShares Dynamic Energy Exploration & Production Portfolio Actual | $ | 1,000.00 | $ | 1,067.07 | 0.67 | % | $ | 3.44 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.53 | 0.67 | % | $ | 3.37 | |||||||||||
PowerShares Dynamic Food & Beverage Portfolio Actual | $ | 1,000.00 | $ | 1,045.00 | 0.63 | % | $ | 3.20 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.73 | 0.63 | % | $ | 3.17 | |||||||||||
PowerShares Dynamic Insurance Portfolio Actual | $ | 1,000.00 | $ | 1,099.51 | 0.63 | % | $ | 3.29 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.73 | 0.63 | % | $ | 3.17 | |||||||||||
PowerShares Dynamic Leisure and Entertainment Portfolio Actual | $ | 1,000.00 | $ | 1,208.30 | 0.63 | % | $ | 3.46 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.73 | 0.63 | % | $ | 3.17 | |||||||||||
PowerShares Dynamic Media Portfolio Actual | $ | 1,000.00 | $ | 1,118.88 | 0.63 | % | $ | 3.32 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.73 | 0.63 | % | $ | 3.17 | |||||||||||
PowerShares Dynamic Networking Portfolio Actual | $ | 1,000.00 | $ | 1,111.06 | 0.63 | % | $ | 3.31 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.73 | 0.63 | % | $ | 3.17 | |||||||||||
PowerShares Dynamic Oil & Gas Services Portfolio Actual | $ | 1,000.00 | $ | 993.81 | 0.63 | % | $ | 3.12 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.73 | 0.63 | % | $ | 3.17 | |||||||||||
PowerShares Dynamic Pharmaceuticals Portfolio Actual | $ | 1,000.00 | $ | 1,207.01 | 0.63 | % | $ | 3.46 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.73 | 0.63 | % | $ | 3.17 | |||||||||||
PowerShares Dynamic Retail Portfolio Actual | $ | 1,000.00 | $ | 1,215.71 | 0.63 | % | $ | 3.47 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.73 | 0.63 | % | $ | 3.17 | |||||||||||
PowerShares Dynamic Semiconductors Portfolio Actual | $ | 1,000.00 | $ | 1,091.19 | 0.63 | % | $ | 3.28 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.73 | 0.63 | % | $ | 3.17 | |||||||||||
PowerShares Dynamic Software Portfolio Actual | $ | 1,000.00 | $ | 1,089.18 | 0.63 | % | $ | 3.27 | |||||||||||
Hypothetical (5% return before expenses) | $ | 1,000.00 | $ | 1,021.73 | 0.63 | % | $ | 3.17 |
(1) Expenses are calculated using the annualized expense ratio, which represents the ongoing expenses as a percentage of net assets for the six-month period ended April 30, 2012. Expenses are calculated by multiplying the Fund's annualized expense ratio by the average account for the period, then multiplying the result by 182/366. Expense ratios for the most recent six month period may differ from expense ratios based on the one year data in the Financial Highlights.
35
Schedule of Investments
PowerShares Dynamic Banking Portfolio (PJB)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks—100.0% | |||||||||||
Commercial Banks-Central U.S.—25.9% | |||||||||||
13,753 | 1st Source Corp. | $ | 312,056 | ||||||||
14,944 | Chemical Financial Corp. | 329,814 | |||||||||
16,460 | Commerce Bancshares, Inc. | 660,046 | |||||||||
11,310 | Cullen/Frost Bankers, Inc. | 666,838 | |||||||||
20,846 | First Financial Bancorp. | 350,421 | |||||||||
18,424 | International Bancshares Corp. | 363,505 | |||||||||
17,426 | MB Financial, Inc. | 360,195 | |||||||||
10,684 | Texas Capital Bancshares, Inc.(a) | 402,894 | |||||||||
3,445,769 | |||||||||||
Commercial Banks-Eastern U.S.—7.5% | |||||||||||
53,419 | CapitalSource, Inc. | 344,552 | |||||||||
16,208 | S&T Bancorp, Inc. | 303,414 | |||||||||
15,575 | Webster Financial Corp. | 354,020 | |||||||||
1,001,986 | |||||||||||
Commercial Banks-Southern U.S.—24.0% | |||||||||||
11,953 | Bank of the Ozarks, Inc. | 369,348 | |||||||||
21,825 | BB&T Corp. | 699,273 | |||||||||
10,081 | City Holding Co. | 336,201 | |||||||||
11,142 | Community Trust Bancorp, Inc. | 355,987 | |||||||||
13,906 | Home BancShares, Inc. | 405,221 | |||||||||
20,959 | Pinnacle Financial Partners, Inc.(a) | 383,549 | |||||||||
13,309 | Republic Bancorp, Inc., Class A | 313,161 | |||||||||
13,135 | Simmons First National Corp., Class A | 319,706 | |||||||||
3,182,446 | |||||||||||
Commercial Banks-Western U.S.—20.9% | |||||||||||
7,522 | Bank of Hawaii Corp. | 367,751 | |||||||||
16,141 | Columbia Banking System, Inc. | 330,729 | |||||||||
29,153 | East West Bancorp, Inc. | 663,814 | |||||||||
20,120 | First Republic Bank(a) | 664,564 | |||||||||
5,759 | SVB Financial Group(a) | 369,094 | |||||||||
18,444 | Zions Bancorp. | 376,073 | |||||||||
2,772,025 | |||||||||||
Fiduciary Banks—2.6% | |||||||||||
37,319 | Boston Private Financial Holdings, Inc. | 347,813 | |||||||||
Savings & Loan/Thrifts-Eastern U.S.—3.0% | |||||||||||
27,123 | Oritani Financial Corp. | 401,963 | |||||||||
Super-Regional Banks-U.S.—16.1% | |||||||||||
21,944 | Comerica, Inc. | 702,647 | |||||||||
22,394 | U.S. Bancorp | 720,415 | |||||||||
21,317 | Wells Fargo & Co. | 712,627 | |||||||||
2,135,689 | |||||||||||
Total Common Stocks (Cost $11,900,155) | 13,287,691 |
Number of Shares | Value | ||||||||||
Money Market Fund—0.8% | |||||||||||
100,817 | Goldman Sachs Financial Square Prime Obligations—Institutional Share Class (Cost $100,817) | $ | 100,817 | ||||||||
Total Investments (Cost $12,000,972)—100.8% | 13,388,508 | ||||||||||
Liabilities in excess of other assets—(0.8)% | (101,824 | ) | |||||||||
Net Assets—100.0% | $ | 13,286,684 |
Notes to Schedule of Investments:
(a) Non-income producing security.
See Notes to Financial Statements.
36
Schedule of Investments
PowerShares Dynamic Biotechnology & Genome Portfolio (PBE)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks—100.1% | |||||||||||
Biotechnology—52.7% | |||||||||||
138,210 | Acorda Therapeutics, Inc.(a) | $ | 3,488,420 | ||||||||
80,987 | Alexion Pharmaceuticals, Inc.(a) | 7,314,746 | |||||||||
278,582 | Alnylam Pharmaceuticals, Inc.(a) | 3,173,049 | |||||||||
101,197 | Amgen, Inc. | 7,196,119 | |||||||||
58,889 | Biogen Idec, Inc.(a) | 7,891,715 | |||||||||
86,902 | Cubist Pharmaceuticals, Inc.(a) | 3,674,217 | |||||||||
647,933 | Exelixis, Inc.(a) | 3,110,079 | |||||||||
151,436 | Gilead Sciences, Inc.(a) | 7,876,186 | |||||||||
320,632 | Halozyme Therapeutics, Inc.(a) | 2,593,913 | |||||||||
143,720 | Life Technologies Corp.(a) | 6,662,859 | |||||||||
237,974 | Momenta Pharmaceuticals, Inc.(a) | 3,779,027 | |||||||||
156,622 | Myriad Genetics, Inc.(a) | 4,073,738 | |||||||||
579,622 | PDL BioPharma, Inc. | 3,645,822 | |||||||||
212,781 | Seattle Genetics, Inc.(a) | 4,206,680 | |||||||||
78,002 | United Therapeutics Corp.(a) | 3,412,588 | |||||||||
72,099,158 | |||||||||||
Chemicals—4.9% | |||||||||||
94,408 | Sigma-Aldrich Corp. | 6,693,527 | |||||||||
Electronics—4.8% | |||||||||||
77,394 | Waters Corp.(a) | 6,509,609 | |||||||||
Healthcare-Products—8.1% | |||||||||||
229,925 | Bruker Corp.(a) | 3,455,773 | |||||||||
164,914 | Luminex Corp.(a) | 4,129,447 | |||||||||
52,376 | Techne Corp. | 3,506,049 | |||||||||
11,091,269 | |||||||||||
Pharmaceuticals—29.6% | |||||||||||
195,829 | BioMarin Pharmaceutical, Inc.(a) | 6,795,266 | |||||||||
229,080 | MAP Pharmaceuticals, Inc.(a) | 2,936,806 | |||||||||
535,611 | Nektar Therapeutics(a) | 4,081,356 | |||||||||
105,402 | Neogen Corp.(a) | 4,109,624 | |||||||||
460,414 | Neurocrine Biosciences, Inc.(a) | 3,420,876 | |||||||||
97,056 | Onyx Pharmaceuticals, Inc.(a) | 4,417,019 | |||||||||
780,494 | Opko Health, Inc.(a) | 3,707,346 | |||||||||
294,374 | Optimer Pharmaceuticals, Inc.(a) | 4,356,735 | |||||||||
151,665 | Pharmacyclics, Inc.(a) | 4,179,887 | |||||||||
117,787 | ViroPharma, Inc.(a) | 2,561,867 | |||||||||
40,566,782 | |||||||||||
Total Common Stocks (Cost $118,751,030) | 136,960,345 |
Number of Shares | Value | ||||||||||
Money Market Fund—0.1% | |||||||||||
167,240 | Goldman Sachs Financial Square Prime Obligations—Institutional Share Class (Cost $167,240) | $ | 167,240 | ||||||||
Total Investments (Cost $118,918,270)—100.2% | 137,127,585 | ||||||||||
Liabilities in excess of other assets—(0.2)% | (224,757 | ) | |||||||||
Net Assets—100.0% | $ | 136,902,828 |
Notes to Schedule of Investments:
(a) Non-income producing security.
See Notes to Financial Statements.
37
Schedule of Investments
PowerShares Dynamic Building & Construction Portfolio (PKB)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks—100.0% | |||||||||||
Building Materials—15.7% | |||||||||||
57,781 | Apogee Enterprises, Inc. | $ | 887,516 | ||||||||
67,013 | Comfort Systems USA, Inc. | 708,997 | |||||||||
54,153 | Gibraltar Industries, Inc.(a) | 732,149 | |||||||||
102,475 | Louisiana-Pacific Corp.(a) | 927,399 | |||||||||
9,228 | Martin Marietta Materials, Inc. | 764,817 | |||||||||
23,222 | Texas Industries, Inc. | 780,491 | |||||||||
4,801,369 | |||||||||||
Commercial Services—2.7% | |||||||||||
112,903 | Great Lakes Dredge & Dock Corp. | 836,611 | |||||||||
Distribution/Wholesale—5.6% | |||||||||||
34,447 | Beacon Roofing Supply, Inc.(a) | 919,391 | |||||||||
21,331 | Pool Corp. | 787,327 | |||||||||
1,706,718 | |||||||||||
Engineering & Construction—19.3% | |||||||||||
33,800 | AECOM Technology Corp.(a) | 745,966 | |||||||||
35,277 | Dycom Industries, Inc.(a) | 825,129 | |||||||||
28,994 | EMCOR Group, Inc. | 850,104 | |||||||||
31,453 | Jacobs Engineering Group, Inc.(a) | 1,378,585 | |||||||||
40,594 | KBR, Inc. | 1,374,513 | |||||||||
17,364 | URS Corp. | 717,307 | |||||||||
5,891,604 | |||||||||||
Environmental Control—2.8% | |||||||||||
32,527 | Tetra Tech, Inc.(a) | 868,471 | |||||||||
Forest Products & Paper—2.4% | |||||||||||
12,055 | Deltic Timber Corp. | 736,319 | |||||||||
Holding Companies-Diversified—2.3% | |||||||||||
48,914 | Primoris Services Corp. | 705,340 | |||||||||
Home Builders—12.0% | |||||||||||
106,159 | D.R. Horton, Inc. | 1,735,700 | |||||||||
95,349 | PulteGroup, Inc.(a) | 938,234 | |||||||||
44,700 | Ryland Group, Inc. (The) | 1,006,197 | |||||||||
3,680,131 | |||||||||||
Machinery-Construction & Mining—2.1% | |||||||||||
20,446 | Astec Industries, Inc.(a) | 639,755 | |||||||||
Machinery-Diversified—2.9% | |||||||||||
7,810 | NACCO Industries, Inc., Class A | 886,201 | |||||||||
Metal Fabricate/Hardware—3.0% | |||||||||||
7,336 | Valmont Industries, Inc. | 909,151 | |||||||||
Mining—4.5% | |||||||||||
32,145 | Vulcan Materials Co. | 1,376,127 |
Number of Shares | Value | ||||||||||
Common Stocks (Continued) | |||||||||||
Real Estate—2.9% | |||||||||||
54,994 | Forest City Enterprises, Inc., Class A(a) | $ | 877,154 | ||||||||
Retail—16.6% | |||||||||||
31,590 | Home Depot, Inc. (The) | 1,636,046 | |||||||||
54,643 | Lowe's Cos., Inc. | 1,719,615 | |||||||||
17,599 | Tractor Supply Co. | 1,731,918 | |||||||||
5,087,579 | |||||||||||
Textiles—5.2% | |||||||||||
23,780 | Mohawk Industries, Inc.(a) | 1,593,736 | |||||||||
Total Common Stocks (Cost $26,852,209) | 30,596,266 | ||||||||||
Money Market Fund—0.4% | |||||||||||
113,549 | Goldman Sachs Financial Square Prime Obligations—Institutional Share Class (Cost $113,549) | 113,549 | |||||||||
Total Investments (Cost $26,965,758)—100.4% | 30,709,815 | ||||||||||
Liabilities in excess of other assets—(0.4)% | (109,457 | ) | |||||||||
Net Assets—100.0% | $ | 30,600,358 |
Notes to Schedule of Investments:
(a) Non-income producing security.
See Notes to Financial Statements.
38
Schedule of Investments
PowerShares Dynamic Energy Exploration & Production Portfolio (PXE)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.0% | |||||||||||
Oil Companies-Exploration & Production—51.9% | |||||||||||
32,600 | Apache Corp. | $ | 3,127,644 | ||||||||
70,452 | Bill Barrett Corp.(a) | 1,689,439 | |||||||||
102,211 | BreitBurn Energy Partners LP | 1,945,075 | |||||||||
22,959 | Cimarex Energy Co. | 1,586,696 | |||||||||
21,640 | Clayton Williams Energy, Inc.(a) | 1,591,406 | |||||||||
30,950 | Contango Oil & Gas Co.(a) | 1,679,347 | |||||||||
94,879 | Denbury Resources, Inc.(a) | 1,806,496 | |||||||||
112,531 | Energy Partners Ltd.(a) | 1,832,005 | |||||||||
36,712 | EQT Corp. | 1,828,992 | |||||||||
58,282 | GeoResources, Inc.(a) | 2,197,814 | |||||||||
342,646 | Gran Tierra Energy, Inc. (Canada)(a) | 2,210,067 | |||||||||
35,020 | Occidental Petroleum Corp. | 3,194,524 | |||||||||
71,960 | Pioneer Southwest Energy Partners LP | 2,041,505 | |||||||||
42,665 | Plains Exploration & Production Co.(a) | 1,742,865 | |||||||||
88,214 | QR Energy LP | 1,654,013 | |||||||||
37,588 | Rosetta Resources, Inc.(a) | 1,889,549 | |||||||||
56,506 | Stone Energy Corp.(a) | 1,584,993 | |||||||||
73,944 | W&T Offshore, Inc. | 1,461,873 | |||||||||
35,064,303 | |||||||||||
Oil Companies-Integrated—27.9% | |||||||||||
33,344 | Chevron Corp. | 3,553,137 | |||||||||
62,812 | ConocoPhillips(a)(b) | 3,451,519 | |||||||||
41,644 | Exxon Mobil Corp. | 3,595,543 | |||||||||
103,890 | Marathon Oil Corp. | 3,048,132 | |||||||||
84,862 | Marathon Petroleum Corp. | 3,531,108 | |||||||||
30,635 | Murphy Oil Corp. | 1,684,006 | |||||||||
18,863,445 | |||||||||||
Oil Refining & Marketing—20.2% | |||||||||||
66,664 | CVR Energy, Inc.(a) | 2,023,919 | |||||||||
149,502 | Delek US Holdings, Inc. | 2,436,883 | |||||||||
58,540 | HollyFrontier Corp. | 1,804,203 | |||||||||
71,622 | Tesoro Corp.(a) | 1,665,211 | |||||||||
149,126 | Valero Energy Corp. | 3,683,412 | |||||||||
108,175 | Western Refining, Inc. | 2,060,734 | |||||||||
13,674,362 | |||||||||||
Total Common Stocks and Other Equity Interests (Cost $67,510,900) | 67,602,110 |
Number of Shares | Value | ||||||||||
Money Market Fund—0.2% | |||||||||||
120,746 | Goldman Sachs Financial Square Prime Obligations—Institutional Share Class (Cost $120,746) | $ | 120,746 | ||||||||
Total Investments (Cost $67,631,646)—100.2% | 67,722,856 | ||||||||||
Liabilities in excess of other assets—(0.2)% | (130,830 | ) | |||||||||
Net Assets—100.0% | $ | 67,592,026 |
Notes to Schedule of Investments:
(a) Non-income producing security.
(b) When-issued security.
See Notes to Financial Statements.
39
Schedule of Investments
PowerShares Dynamic Food & Beverage Portfolio (PBJ)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks—100.0% | |||||||||||
Agricultural Chemicals—4.9% | |||||||||||
108,078 | Monsanto Co. | $ | 8,233,382 | ||||||||
Agricultural Operations—7.5% | |||||||||||
268,905 | Archer-Daniels-Midland Co. | 8,290,341 | |||||||||
69,027 | Bunge Ltd. | 4,452,242 | |||||||||
12,742,583 | |||||||||||
Beverages-Non-alcoholic—3.2% | |||||||||||
83,146 | Monster Beverage Corp.(a) | 5,401,164 | |||||||||
Beverages-Wine/Spirits—5.7% | |||||||||||
57,803 | Brown-Forman Corp., Class B | 4,991,289 | |||||||||
217,330 | Constellation Brands, Inc., Class A(a) | 4,694,328 | |||||||||
9,685,617 | |||||||||||
Brewery—2.6% | |||||||||||
106,736 | Molson Coors Brewing Co., Class B | 4,438,083 | |||||||||
Food-Dairy Products—2.8% | |||||||||||
381,121 | Dean Foods Co.(a) | 4,680,166 | |||||||||
Food-Meat Products—5.1% | |||||||||||
199,141 | Smithfield Foods, Inc.(a) | 4,173,995 | |||||||||
246,856 | Tyson Foods, Inc., Class A | 4,505,122 | |||||||||
8,679,117 | |||||||||||
Food-Miscellaneous/Diversified—27.0% | |||||||||||
203,905 | B&G Foods, Inc. | 4,534,847 | |||||||||
119,861 | Cal-Maine Foods, Inc. | 4,318,592 | |||||||||
139,061 | Campbell Soup Co. | 4,704,434 | |||||||||
174,658 | ConAgra Foods, Inc. | 4,509,669 | |||||||||
82,428 | Corn Products International, Inc. | 4,703,342 | |||||||||
225,273 | General Mills, Inc. | 8,760,867 | |||||||||
226,880 | Kraft Foods, Inc., Class A | 9,045,706 | |||||||||
231,264 | Sara Lee Corp. | 5,097,058 | |||||||||
45,674,515 | |||||||||||
Food-Retail—13.5% | |||||||||||
365,091 | Kroger Co. (The) | 8,495,668 | |||||||||
223,974 | Safeway, Inc. | 4,553,391 | |||||||||
109,425 | Weis Markets, Inc. | 4,880,355 | |||||||||
57,803 | Whole Foods Market, Inc. | 4,801,695 | |||||||||
22,731,109 | |||||||||||
Food-Wholesale/Distribution—5.6% | |||||||||||
168,502 | Calavo Growers, Inc. | 4,832,638 | |||||||||
257,710 | Spartan Stores, Inc. | 4,698,053 | |||||||||
9,530,691 |
Number of Shares | Value | ||||||||||
Common Stocks (Continued) | |||||||||||
Retail-Restaurants—16.5% | |||||||||||
281,040 | AFC Enterprises, Inc.(a) | $ | 4,800,163 | ||||||||
85,667 | McDonald's Corp. | 8,348,249 | |||||||||
127,145 | Papa John's International, Inc.(a) | 5,121,401 | |||||||||
131,128 | Yum! Brands, Inc. | 9,536,939 | |||||||||
27,806,752 | |||||||||||
Vitamins & Nutrition Products—5.6% | |||||||||||
110,156 | Mead Johnson Nutrition Co. | 9,424,947 | |||||||||
Total Common Stocks (Cost $162,491,606) | 169,028,126 | ||||||||||
Money Market Fund—0.0% | |||||||||||
3,111 | Goldman Sachs Financial Square Prime Obligations—Institutional Share Class (Cost $3,111) | 3,111 | |||||||||
Total Investments (Cost $162,494,717)—100.0% | 169,031,237 | ||||||||||
Other assets less liabilities—0.0% | 7,674 | ||||||||||
Net Assets—100.0% | $ | 169,038,911 |
Notes to Schedule of Investments:
(a) Non-income producing security.
See Notes to Financial Statements.
40
Schedule of Investments
PowerShares Dynamic Insurance Portfolio (PIC)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks—100.0% | |||||||||||
Insurance Brokers—2.9% | |||||||||||
5,762 | Arthur J. Gallagher & Co. | $ | 216,421 | ||||||||
Investment Management/ Advisor Services—2.5% | |||||||||||
12,578 | National Financial Partners Corp.(a) | 185,526 | |||||||||
Life/Health Insurance—26.1% | |||||||||||
7,773 | Aflac, Inc. | 350,096 | |||||||||
16,313 | American Equity Investment Life Holding Co. | 199,998 | |||||||||
4,464 | Delphi Financial Group, Inc., Class A | 202,755 | |||||||||
7,929 | Lincoln National Corp. | 196,401 | |||||||||
7,919 | Primerica, Inc. | 207,715 | |||||||||
7,054 | Protective Life Corp. | 206,400 | |||||||||
5,968 | Prudential Financial, Inc. | 361,303 | |||||||||
4,075 | Torchmark Corp. | 198,493 | |||||||||
1,923,161 | |||||||||||
Multi-line Insurance—25.3% | |||||||||||
4,985 | ACE Ltd. | 378,711 | |||||||||
2,705 | American National Insurance Co. | 189,891 | |||||||||
4,630 | Assurant, Inc. | 186,774 | |||||||||
12,747 | CNA Financial Corp. | 390,313 | |||||||||
11,515 | Horace Mann Educators Corp. | 202,088 | |||||||||
9,655 | MetLife, Inc. | 347,870 | |||||||||
9,501 | United Fire Group, Inc. | 163,607 | |||||||||
1,859,254 | |||||||||||
Property/Casualty Insurance—43.2% | |||||||||||
8,498 | AMERISAFE, Inc.(a) | 227,066 | |||||||||
7,208 | AmTrust Financial Services, Inc. | 196,346 | |||||||||
5,314 | Chubb Corp. (The) | 388,294 | |||||||||
11,299 | Fidelity National Financial, Inc., Class A | 217,732 | |||||||||
12,997 | First American Financial Corp. | 217,700 | |||||||||
6,587 | HCC Insurance Holdings, Inc. | 210,520 | |||||||||
20,271 | Meadowbrook Insurance Group, Inc. | 178,993 | |||||||||
13,074 | OneBeacon Insurance Group Ltd., Class A | 186,043 | |||||||||
2,230 | ProAssurance Corp. | 196,441 | |||||||||
17,012 | Progressive Corp. (The) | 362,356 | |||||||||
2,780 | RLI Corp. | 191,486 | |||||||||
6,221 | Travelers Cos., Inc. (The) | 400,135 | |||||||||
5,490 | W.R. Berkley Corp. | 206,753 | |||||||||
3,179,865 | |||||||||||
Total Common Stocks (Cost $6,895,768) | 7,364,227 |
Number of Shares | Value | ||||||||||
Money Market Fund—1.2% | |||||||||||
87,790 | Goldman Sachs Financial Square Prime Obligations—Institutional Share Class (Cost $87,790) | $ | 87,790 | ||||||||
Total Investments (Cost $6,983,558)—101.2% | 7,452,017 | ||||||||||
Liabilities in excess of other assets—(1.2)% | (90,795 | ) | |||||||||
Net Assets—100.0% | $ | 7,361,222 |
Notes to Schedule of Investments:
(a) Non-income producing security.
See Notes to Financial Statements.
41
Schedule of Investments
PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—100.0% | |||||||||||
Entertainment—14.4% | |||||||||||
33,030 | Bally Technologies, Inc.(a) | $ | 1,603,607 | ||||||||
50,744 | Cedar Fair LP | 1,578,646 | |||||||||
26,614 | Churchill Downs, Inc. | 1,579,807 | |||||||||
60,961 | Marriott Vacations Worldwide Corp.(a) | 1,800,178 | |||||||||
97,741 | Shuffle Master, Inc.(a) | 1,727,083 | |||||||||
8,289,321 | |||||||||||
Food—3.1% | |||||||||||
73,293 | Chefs' Warehouse, Inc. (The)(a) | 1,772,225 | |||||||||
Internet—6.0% | |||||||||||
4,523 | priceline.com, Inc.(a) | 3,441,189 | |||||||||
Leisure Time—2.2% | |||||||||||
28,055 | Life Time Fitness, Inc.(a) | 1,306,241 | |||||||||
Lodging—5.1% | |||||||||||
70,937 | Ameristar Casinos, Inc. | 1,275,447 | |||||||||
33,083 | Wyndham Worldwide Corp. | 1,665,398 | |||||||||
2,940,845 | |||||||||||
Media—16.9% | |||||||||||
32,164 | AMC Networks, Inc., Class A(a) | 1,366,970 | |||||||||
89,748 | CBS Corp., Class B | 2,993,096 | |||||||||
56,270 | Viacom, Inc., Class B | 2,610,365 | |||||||||
64,632 | Walt Disney Co. (The) | 2,786,285 | |||||||||
9,756,716 | |||||||||||
Retail—52.3% | |||||||||||
87,311 | AFC Enterprises, Inc.(a) | 1,491,272 | |||||||||
39,075 | Bob Evans Farms, Inc. | 1,494,228 | |||||||||
74,456 | Bravo Brio Restaurant Group, Inc.(a) | 1,504,011 | |||||||||
54,791 | Brinker International, Inc. | 1,724,273 | |||||||||
17,011 | Buffalo Wild Wings, Inc.(a) | 1,426,372 | |||||||||
38,427 | CEC Entertainment, Inc. | 1,468,680 | |||||||||
6,891 | Chipotle Mexican Grill, Inc.(a) | 2,853,908 | |||||||||
26,072 | Cracker Barrel Old Country Store, Inc. | 1,499,661 | |||||||||
47,399 | Domino's Pizza, Inc.(a) | 1,792,156 | |||||||||
49,842 | Dunkin' Brands Group, Inc. | 1,613,386 | |||||||||
38,335 | HSN, Inc. | 1,483,564 | |||||||||
26,614 | McDonald's Corp. | 2,593,534 | |||||||||
9,565 | Panera Bread Co., Class A(a) | 1,510,505 | |||||||||
39,499 | Papa John's International, Inc.(a) | 1,591,020 | |||||||||
55,279 | Starbucks Corp. | 3,171,909 | |||||||||
40,738 | Yum! Brands, Inc. | 2,962,875 | |||||||||
30,181,354 | |||||||||||
Total Common Stocks and Other Equity Interests (Cost $49,924,556) | 57,687,891 |
Number of Shares | Value | ||||||||||
Money Market Fund—0.1% | |||||||||||
81,455 | Goldman Sachs Financial Square Prime Obligations—Institutional Share Class (Cost $81,455) | $ | 81,455 | ||||||||
Total Investments (Cost $50,006,011)—100.1% | 57,769,346 | ||||||||||
Liabilities in excess of other assets—(0.1)% | (90,804 | ) | |||||||||
Net Assets—100.0% | $ | 57,678,542 |
Notes to Schedule of Investments:
(a) Non-income producing security.
See Notes to Financial Statements.
42
Schedule of Investments
PowerShares Dynamic Media Portfolio (PBS)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks—100.0% | |||||||||||
Advertising Agencies—5.8% | |||||||||||
330,121 | Interpublic Group of Cos., Inc. (The) | $ | 3,898,729 | ||||||||
78,914 | Omnicom Group, Inc.(a) | 4,049,077 | |||||||||
7,947,806 | |||||||||||
Advertising Sales—5.8% | |||||||||||
558,334 | Clear Channel Outdoor Holdings, Inc., Class A(b) | 4,226,589 | |||||||||
119,094 | Lamar Advertising Co., Class A(b) | 3,789,571 | |||||||||
8,016,160 | |||||||||||
Cable/Satellite TV—8.4% | |||||||||||
240,926 | Comcast Corp., Class A | 7,307,286 | |||||||||
133,195 | DISH Network Corp., Class A | 4,258,244 | |||||||||
11,565,530 | |||||||||||
Commercial Services—2.9% | |||||||||||
31,474 | Alliance Data Systems Corp.(b) | 4,044,094 | |||||||||
Diversified Operations/ Commercial Services—2.5% | |||||||||||
191,322 | Viad Corp. | 3,459,102 | |||||||||
E-Commerce/Services—5.8% | |||||||||||
84,886 | IAC/InterActiveCorp. | 4,087,261 | |||||||||
208,591 | Liberty Interactive Corp., Class A(b) | 3,929,854 | |||||||||
8,017,115 | |||||||||||
E-Marketing/Information—2.8% | |||||||||||
184,512 | ValueClick, Inc.(a)(b) | 3,907,964 | |||||||||
Internet Content-Information/News—2.6% | |||||||||||
153,440 | Bankrate, Inc.(b) | 3,593,565 | |||||||||
Motion Pictures & Services—2.4% | |||||||||||
275,772 | Lions Gate Entertainment Corp. (Canada)(a)(b) | 3,372,692 | |||||||||
Multimedia—20.5% | |||||||||||
359,542 | News Corp., Class A | 7,047,023 | |||||||||
186,592 | Time Warner, Inc.(a) | 6,989,736 | |||||||||
148,212 | Viacom, Inc., Class B | 6,875,555 | |||||||||
170,241 | Walt Disney Co. (The) | 7,339,090 | |||||||||
28,251,404 | |||||||||||
Printing-Commercial—2.2% | |||||||||||
152,706 | Valassis Communications, Inc.(a)(b) | 3,054,120 | |||||||||
Publishing-Books—8.2% | |||||||||||
152,784 | McGraw-Hill Cos., Inc. (The) | 7,512,389 | |||||||||
123,423 | Scholastic Corp. | 3,770,573 | |||||||||
11,282,962 | |||||||||||
Publishing-Newspapers—2.5% | |||||||||||
252,202 | Gannett Co., Inc. | 3,485,432 |
Number of Shares | Value | ||||||||||
Common Stocks (Continued) | |||||||||||
Retail-Discount—2.8% | |||||||||||
100,973 | HSN, Inc. | $ | 3,907,655 | ||||||||
Television—13.3% | |||||||||||
84,717 | AMC Networks, Inc., Class A(b) | 3,600,473 | |||||||||
519,079 | Belo Corp., Class A(a) | 3,498,592 | |||||||||
236,392 | CBS Corp., Class B | 7,883,673 | |||||||||
320,201 | Sinclair Broadcast Group, Inc., Class A | 3,291,666 | |||||||||
18,274,404 | |||||||||||
Web Portals/ISP—11.5% | |||||||||||
210,423 | AOL, Inc.(b) | 5,268,992 | |||||||||
11,531 | Google, Inc., Class A(b) | 6,978,907 | |||||||||
319,933 | InfoSpace, Inc.(b) | 3,560,854 | |||||||||
15,808,753 | |||||||||||
Total Common Stocks (Cost $127,347,696) | 137,988,758 | ||||||||||
Money Market Fund—0.1% | |||||||||||
95,859 | Goldman Sachs Financial Square Prime Obligations—Institutional Share Class (Cost $95,859) | 95,859 | |||||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $127,443,555)—100.1% | 138,084,617 | ||||||||||
Investments Purchased with Cash Collateral from Securities on Loan Money Market Fund—7.9% | |||||||||||
10,883,525 | Invesco Liquid Assets Portfolio— Institutional Class (Cost $10,883,525)(c)(d) | 10,883,525 | |||||||||
Total Investments (Cost $138,327,080)—108.0% | 148,968,142 | ||||||||||
Liabilities in excess of other assets—(8.0)% | (10,993,470 | ) | |||||||||
Net Assets—100.0% | $ | 137,974,672 |
Notes to Schedule of Investments:
(a) All or a portion of this security was out on loan at April 30, 2012
(b) Non-income producing security.
(c) The security has been segregated to satisfy the commitment to return the cash collateral received in securities lending transactions upon the borrower's return of the securities loaned. See Note 2H.
(d) The security and the Fund are advised by wholly owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated.
See Notes to Financial Statements.
43
Schedule of Investments
PowerShares Dynamic Networking Portfolio (PXQ)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks—100.0% | |||||||||||
Computers—9.9% | |||||||||||
388,419 | Brocade Communications Systems, Inc.(a) | $ | 2,151,841 | ||||||||
84,190 | Fortinet, Inc.(a) | 2,199,043 | |||||||||
103,519 | NetScout Systems, Inc.(a) | 2,141,808 | |||||||||
81,675 | Riverbed Technology, Inc.(a) | 1,611,448 | |||||||||
8,104,140 | |||||||||||
Electrical Components & Equipment—5.2% | |||||||||||
56,509 | Belden, Inc. | 1,965,383 | |||||||||
82,928 | Molex, Inc. | 2,287,984 | |||||||||
4,253,367 | |||||||||||
Electronics—5.3% | |||||||||||
73,996 | Amphenol Corp., Class A | 4,302,127 | |||||||||
Internet—11.7% | |||||||||||
32,678 | F5 Networks, Inc.(a) | 4,376,564 | |||||||||
50,926 | Sourcefire, Inc.(a) | 2,596,717 | |||||||||
125,612 | Websense, Inc.(a) | 2,605,193 | |||||||||
9,578,474 | |||||||||||
Semiconductors—13.0% | |||||||||||
218,486 | Emulex Corp.(a) | 1,896,459 | |||||||||
327,414 | PMC—Sierra, Inc.(a) | 2,314,817 | |||||||||
130,588 | QLogic Corp.(a) | 2,252,643 | |||||||||
65,667 | QUALCOMM, Inc. | 4,192,181 | |||||||||
10,656,100 | |||||||||||
Software—17.0% | |||||||||||
55,424 | Citrix Systems, Inc.(a) | 4,744,849 | |||||||||
75,791 | OPNET Technologies, Inc. | 1,755,319 | |||||||||
58,458 | SolarWinds, Inc.(a) | 2,742,265 | |||||||||
41,440 | VMware, Inc., Class A(a) | 4,629,677 | |||||||||
13,872,110 | |||||||||||
Telecommunications—37.9% | |||||||||||
60,417 | ADTRAN, Inc. | 1,843,927 | |||||||||
194,378 | Arris Group, Inc.(a) | 2,513,307 | |||||||||
104,713 | Aruba Networks, Inc.(a) | 2,211,539 | |||||||||
206,842 | Cisco Systems, Inc. | 4,167,866 | |||||||||
99,839 | Finisar Corp.(a) | 1,649,340 | |||||||||
367,680 | Harmonic, Inc.(a) | 1,735,450 | |||||||||
175,626 | Juniper Networks, Inc.(a) | 3,763,665 | |||||||||
59,766 | LogMeIn, Inc.(a) | 2,152,174 | |||||||||
84,274 | Motorola Solutions, Inc. | 4,300,502 | |||||||||
57,611 | NETGEAR, Inc.(a) | 2,218,023 | |||||||||
800,090 | Sonus Networks, Inc.(a) | 2,264,255 | |||||||||
569,491 | Tellabs, Inc. | 2,146,981 | |||||||||
30,967,029 | |||||||||||
Total Common Stocks (Cost $79,826,611) | 81,733,347 |
Number of Shares | Value | ||||||||||
Money Market Fund—0.2% | |||||||||||
140,783 | Goldman Sachs Financial Square Prime Obligations—Institutional Share Class (Cost $140,783) | $ | 140,783 | ||||||||
Total Investments (Cost $79,967,394)—100.2% | 81,874,130 | ||||||||||
Liabilities in excess of other assets—(0.2)% | (135,472 | ) | |||||||||
Net Assets—100.0% | $ | 81,738,658 |
Notes to Schedule of Investments:
(a) Non-income producing security.
See Notes to Financial Statements.
44
Schedule of Investments
PowerShares Dynamic Oil & Gas Services Portfolio (PXJ)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests—99.9% | |||||||||||
Marine Services—3.0% | |||||||||||
149,326 | Teekay Offshore Partners LP (Marshall Islands) | $ | 4,391,678 | ||||||||
Oil & Gas Drilling—24.5% | |||||||||||
95,232 | Atwood Oceanics, Inc.(a) | 4,221,635 | |||||||||
121,501 | Diamond Offshore Drilling, Inc. | 8,328,894 | |||||||||
130,159 | Helmerich & Payne, Inc. | 6,688,871 | |||||||||
365,923 | Nabors Industries Ltd. (Bermuda)(a) | 6,092,618 | |||||||||
678,796 | Parker Drilling Co.(a) | 3,509,375 | |||||||||
219,354 | Patterson-UTI Energy, Inc. | 3,546,954 | |||||||||
88,070 | Unit Corp.(a) | 3,720,957 | |||||||||
36,109,304 | |||||||||||
Oil Field Machinery & Equipment—15.9% | |||||||||||
388,567 | Flotek Industries, Inc.(a) | 5,300,054 | |||||||||
156,181 | FMC Technologies, Inc.(a) | 7,340,507 | |||||||||
130,849 | Gulf Island Fabrication, Inc. | 3,666,389 | |||||||||
94,881 | National Oilwell Varco, Inc. | 7,188,184 | |||||||||
23,495,134 | |||||||||||
Oil-Field Services—45.1% | |||||||||||
203,610 | C&J Energy Services, Inc.(a) | 3,838,048 | |||||||||
48,205 | CARBO Ceramics, Inc. | 4,053,558 | |||||||||
34,854 | Core Laboratories NV (Netherlands) | 4,774,301 | |||||||||
211,990 | Halliburton Co. | 7,254,298 | |||||||||
103,558 | Hornbeck Offshore Services, Inc.(a) | 4,311,120 | |||||||||
549,068 | Newpark Resources, Inc.(a) | 3,492,072 | |||||||||
79,549 | Oceaneering International, Inc. | 4,107,115 | |||||||||
51,977 | Oil States International, Inc.(a) | 4,136,330 | |||||||||
442,636 | Pioneer Drilling Co.(a) | 3,487,972 | |||||||||
405,796 | RPC, Inc. | 4,195,931 | |||||||||
102,238 | Schlumberger Ltd. | 7,579,925 | |||||||||
45,046 | SEACOR Holdings, Inc.(a) | 4,186,125 | |||||||||
147,985 | Superior Energy Services, Inc.(a) | 3,983,756 | |||||||||
494,771 | Weatherford International Ltd. (Switzerland)(a) | 7,060,382 | |||||||||
66,460,933 | |||||||||||
Seismic Data Collection—3.0% | |||||||||||
39,163 | OYO Geospace Corp.(a) | 4,512,361 | |||||||||
Transportation-Marine—5.4% | |||||||||||
80,671 | Gulfmark Offshore, Inc., Class A(a) | 3,885,922 | |||||||||
73,168 | Tidewater, Inc. | 4,026,435 | |||||||||
7,912,357 |
Number of Shares | Value | ||||||||||
Common Stocks and Other Equity Interests (Continued) | |||||||||||
Transportation-Services—3.0% | |||||||||||
91,661 | Bristow Group, Inc. | $ | 4,477,640 | ||||||||
Total Common Stocks and Other Equity Interests (Cost $163,770,745) | 147,359,407 | ||||||||||
Money Market Fund—0.1% | |||||||||||
141,323 | Goldman Sachs Financial Square Prime Obligations—Institutional Share Class (Cost $141,323) | 141,323 | |||||||||
Total Investments (Cost $163,912,068)—100.0% | 147,500,730 | ||||||||||
Liabilities in excess of other assets—(0.0)% | (15,995 | ) | |||||||||
Net Assets—100.0% | $ | 147,484,735 |
Notes to Schedule of Investments:
(a) Non-income producing security.
See Notes to Financial Statements.
45
Schedule of Investments
PowerShares Dynamic Pharmaceuticals Portfolio (PJP)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks—100.0% | |||||||||||
Consumer Products-Miscellaneous—2.6% | |||||||||||
421,915 | Prestige Brands Holdings, Inc.(a) | $ | 7,168,336 | ||||||||
Medical Products—2.5% | |||||||||||
121,727 | Baxter International, Inc. | 6,744,893 | |||||||||
Medical-Biomedical/Genetics—20.5% | |||||||||||
189,922 | Amgen, Inc. | 13,505,353 | |||||||||
60,283 | Biogen Idec, Inc.(a) | 8,078,525 | |||||||||
93,692 | Celgene Corp.(a) | 6,832,021 | |||||||||
284,212 | Gilead Sciences, Inc.(a) | 14,781,866 | |||||||||
318,351 | Medicines Co. (The)(a) | 7,032,374 | |||||||||
492,386 | Spectrum Pharmaceuticals, Inc.(a) | 5,234,063 | |||||||||
55,464,202 | |||||||||||
Medical-Drugs—53.6% | |||||||||||
226,872 | Abbott Laboratories | 14,079,676 | |||||||||
551,609 | Akorn, Inc.(a) | 6,691,017 | |||||||||
80,260 | Allergan, Inc. | 7,704,960 | |||||||||
347,523 | Auxilium Pharmaceuticals, Inc.(a) | 6,227,612 | |||||||||
394,588 | Bristol-Myers Squibb Co. | 13,167,402 | |||||||||
329,411 | Eli Lilly & Co. | 13,634,321 | |||||||||
193,290 | Endo Pharmaceuticals Holdings, Inc.(a) | 6,792,211 | |||||||||
217,295 | Forest Laboratories, Inc.(a) | 7,568,385 | |||||||||
177,994 | Hi-Tech Pharmacal Co., Inc.(a) | 5,800,824 | |||||||||
199,557 | Johnson & Johnson | 12,989,165 | |||||||||
207,525 | Medicis Pharmaceutical Corp., Class A | 7,983,487 | |||||||||
336,742 | Merck & Co., Inc. | 13,213,756 | |||||||||
607,343 | Pfizer, Inc. | 13,926,375 | |||||||||
152,166 | Salix Pharmaceuticals Ltd.(a) | 7,517,000 | |||||||||
317,057 | VIVUS, Inc.(a) | 7,679,121 | |||||||||
144,975,312 | |||||||||||
Medical-Generic Drugs—14.3% | |||||||||||
298,700 | Impax Laboratories, Inc.(a) | 7,356,981 | |||||||||
298,828 | Mylan, Inc.(a) | 6,487,556 | |||||||||
188,209 | Par Pharmaceutical Cos., Inc.(a) | 7,968,769 | |||||||||
72,907 | Perrigo Co. | 7,647,944 | |||||||||
120,621 | Watson Pharmaceuticals, Inc.(a) | 9,089,999 | |||||||||
38,551,249 | |||||||||||
Therapeutics—6.5% | |||||||||||
180,373 | Questcor Pharmaceuticals, Inc.(a) | 8,098,748 | |||||||||
429,667 | Warner Chilcott PLC, Class A (Ireland)(a) | 9,345,257 | |||||||||
17,444,005 | |||||||||||
Total Common Stocks (Cost $241,923,413) | 270,347,997 |
Number of Shares | Value | ||||||||||
Money Market Fund—0.0% | |||||||||||
36,924 | Goldman Sachs Financial Square Prime Obligations—Institutional Share Class (Cost $36,924) | $ | 36,924 | ||||||||
Total Investments (Cost $241,960,337)—100.0% | 270,384,921 | ||||||||||
Other assets less liabilities—0.0% | 425 | ||||||||||
Net Assets—100.0% | $ | 270,385,346 |
Notes to Schedule of Investments:
(a) Non-income producing security.
See Notes to Financial Statements.
46
Schedule of Investments
PowerShares Dynamic Retail Portfolio (PMR)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks—100.0% | |||||||||||
E-Commerce/Products—2.9% | |||||||||||
76,965 | Stamps.com, Inc.(a) | $ | 2,234,294 | ||||||||
E-Commerce/Services—2.4% | |||||||||||
379,464 | United Online, Inc. | 1,798,659 | |||||||||
E-Marketing/Information—3.2% | |||||||||||
45,594 | Liquidity Services, Inc.(a) | 2,431,528 | |||||||||
Food-Retail—15.1% | |||||||||||
48,116 | Harris Teeter Supermarkets, Inc. | 1,826,964 | |||||||||
119,642 | Ingles Markets, Inc., Class A | 2,080,574 | |||||||||
156,628 | Kroger Co. (The) | 3,644,734 | |||||||||
96,089 | Safeway, Inc. | 1,953,489 | |||||||||
46,946 | Weis Markets, Inc. | 2,093,792 | |||||||||
11,599,553 | |||||||||||
Food-Wholesale/Distribution—2.6% | |||||||||||
110,562 | Spartan Stores, Inc. | 2,015,545 | |||||||||
Home Furnishings—2.7% | |||||||||||
70,222 | Select Comfort Corp.(a) | 2,028,011 | |||||||||
Rental Auto/Equipment—5.4% | |||||||||||
151,438 | Avis Budget Group, Inc.(a) | 1,992,924 | |||||||||
26,385 | Dollar Thrifty Automotive Group, Inc.(a) | 2,133,491 | |||||||||
4,126,415 | |||||||||||
Retail-Apparel/Shoe—6.1% | |||||||||||
70,517 | Foot Locker, Inc. | 2,157,115 | |||||||||
89,109 | Gap, Inc. (The) | 2,539,606 | |||||||||
4,696,721 | |||||||||||
Retail-Auto Parts—8.8% | |||||||||||
23,781 | Advance Auto Parts, Inc. | 2,183,096 | |||||||||
43,041 | O'Reilly Automotive, Inc.(a) | 4,539,104 | |||||||||
6,722,200 | |||||||||||
Retail-Building Products—5.3% | |||||||||||
78,483 | Home Depot, Inc. (The) | 4,064,635 | |||||||||
Retail-Computer Equipment—2.6% | |||||||||||
88,478 | GameStop Corp., Class A | 2,013,759 | |||||||||
Retail-Discount—15.4% | |||||||||||
43,688 | Costco Wholesale Corp. | 3,851,971 | |||||||||
41,985 | Dollar Tree, Inc.(a) | 4,268,195 | |||||||||
62,717 | Wal-Mart Stores, Inc. | 3,694,659 | |||||||||
11,814,825 | |||||||||||
Retail-Drug Store—2.5% | |||||||||||
1,305,940 | Rite Aid Corp.(a) | 1,893,613 |
Number of Shares | Value | ||||||||||
Common Stocks (Continued) | |||||||||||
Retail-Home Furnishings—2.7% | |||||||||||
122,327 | Pier 1 Imports, Inc. | $ | 2,101,578 | ||||||||
Retail-Major Department Store—5.6% | |||||||||||
102,508 | TJX Cos., Inc. (The) | 4,275,609 | |||||||||
Retail-Miscellaneous/Diversified—6.2% | |||||||||||
29,695 | PriceSmart, Inc. | 2,451,025 | |||||||||
86,238 | Sally Beauty Holdings, Inc.(a) | 2,293,931 | |||||||||
4,744,956 | |||||||||||
Retail-Regional Deptment Store—5.3% | |||||||||||
99,493 | Macy's, Inc. | 4,081,203 | |||||||||
Retail-Video Rental—2.7% | |||||||||||
33,439 | Coinstar, Inc.(a) | 2,099,635 | |||||||||
Transportation-Equipment & Leasing—2.5% | |||||||||||
18,889 | AMERCO | 1,897,211 | |||||||||
Total Common Stocks (Cost $70,899,101) | 76,639,950 | ||||||||||
Money Market Fund—0.2% | |||||||||||
131,052 | Goldman Sachs Financial Square Prime Obligations—Institutional Share Class (Cost $131,052) | 131,052 | |||||||||
Total Investments (Cost $71,030,153)—100.2% | 76,771,002 | ||||||||||
Liabilities in excess of other assets—(0.2)% | (127,873 | ) | |||||||||
Net Assets—100.0% | $ | 76,643,129 |
Notes to Schedule of Investments:
(a) Non-income producing security.
See Notes to Financial Statements.
47
Schedule of Investments
PowerShares Dynamic Semiconductors Portfolio (PSI)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks—100.1% | |||||||||||
Electronic Components- Semiconductors—35.4% | |||||||||||
77,212 | Advanced Micro Devices, Inc.(a) | $ | 568,280 | ||||||||
91,283 | Amkor Technology, Inc.(a) | 471,933 | |||||||||
28,734 | Broadcom Corp., Class A | 1,051,664 | |||||||||
22,395 | CEVA, Inc.(a) | 494,706 | |||||||||
39,550 | Intel Corp. | 1,123,220 | |||||||||
45,497 | IXYS Corp.(a) | 566,893 | |||||||||
67,764 | LSI Corp.(a) | 544,823 | |||||||||
30,316 | Monolithic Power Systems, Inc.(a) | 628,148 | |||||||||
12,576 | Silicon Laboratories, Inc.(a) | 446,322 | |||||||||
18,107 | Volterra Semiconductor Corp.(a) | 595,539 | |||||||||
28,364 | Xilinx, Inc. | 1,031,882 | |||||||||
7,523,410 | |||||||||||
Instruments-Scientific—3.1% | |||||||||||
12,973 | FEI Co.(a) | 650,855 | |||||||||
Lasers-Systems/Components—2.6% | |||||||||||
39,237 | Electro Scientific Industries, Inc. | 559,519 | |||||||||
Semiconductor Components- Integrated Circuits—26.0% | |||||||||||
27,182 | Analog Devices, Inc. | 1,059,554 | |||||||||
25,186 | Cirrus Logic, Inc.(a) | 689,593 | |||||||||
31,673 | Linear Technology Corp. | 1,036,024 | |||||||||
37,223 | Maxim Integrated Products, Inc. | 1,101,056 | |||||||||
16,645 | QUALCOMM, Inc. | 1,062,617 | |||||||||
21,679 | Standard Microsystems Corp.(a) | 574,060 | |||||||||
5,522,904 | |||||||||||
Semiconductor Equipment—33.0% | |||||||||||
47,722 | Brooks Automation, Inc. | 561,211 | |||||||||
63,647 | Entegris, Inc.(a) | 563,276 | |||||||||
22,116 | KLA-Tencor Corp. | 1,153,349 | |||||||||
51,245 | Kulicke & Soffa Industries, Inc.(a) | 671,309 | |||||||||
14,201 | Lam Research Corp.(a) | 591,472 | |||||||||
18,623 | MKS Instruments, Inc. | 514,926 | |||||||||
12,732 | Novellus Systems, Inc.(a) | 595,221 | |||||||||
77,943 | Photronics, Inc.(a) | 482,467 | |||||||||
35,165 | Teradyne, Inc.(a) | 605,190 | |||||||||
20,991 | Ultratech, Inc.(a) | 670,453 | |||||||||
19,980 | Veeco Instruments, Inc.(a) | 603,196 | |||||||||
7,012,070 | |||||||||||
Total Common Stocks (Cost $20,022,241) | 21,268,758 |
Number of Shares | Value | ||||||||||
Money Market Fund—0.5% | |||||||||||
116,247 | Goldman Sachs Financial Square Prime Obligations—Institutional Share Class (Cost $116,247) | $ | 116,247 | ||||||||
Total Investments (Cost $20,138,488)—100.6% | 21,385,005 | ||||||||||
Liabilities in excess of other assets—(0.6)% | (123,594 | ) | |||||||||
Net Assets—100.0% | $ | 21,261,411 |
Notes to Schedule of Investments:
(a) Non-income producing security.
See Notes to Financial Statements.
48
Schedule of Investments
PowerShares Dynamic Software Portfolio (PSJ)
April 30, 2012
Number of Shares | Value | ||||||||||
Common Stocks—100.0% | |||||||||||
Applications Software—20.1% | |||||||||||
126,616 | Deltek, Inc.(a) | $ | 1,321,871 | ||||||||
41,861 | Intuit, Inc. | 2,426,682 | |||||||||
77,206 | Microsoft Corp. | 2,472,136 | |||||||||
96,906 | Nuance Communications, Inc.(a) | 2,368,383 | |||||||||
67,396 | Tangoe, Inc.(a) | 1,380,270 | |||||||||
9,969,342 | |||||||||||
Communications Software—3.2% | |||||||||||
34,105 | SolarWinds, Inc.(a) | 1,599,866 | |||||||||
Computer Aided Design—2.5% | |||||||||||
62,621 | Aspen Technology, Inc.(a) | 1,238,643 | |||||||||
Computer Services—2.9% | |||||||||||
28,467 | Manhattan Associates, Inc.(a) | 1,427,620 | |||||||||
Computer Software—3.2% | |||||||||||
67,362 | SS&C Technologies Holdings, Inc.(a) | 1,601,195 | |||||||||
Computers-Integrated Systems—2.7% | |||||||||||
39,430 | Jack Henry & Associates, Inc. | 1,339,043 | |||||||||
Data Processing/Management—5.5% | |||||||||||
25,371 | CommVault Systems, Inc.(a) | 1,321,068 | |||||||||
32,708 | Fair Isaac Corp. | 1,403,173 | |||||||||
2,724,241 | |||||||||||
Electronic Design Automation—5.2% | |||||||||||
112,251 | Cadence Design Systems, Inc.(a) | 1,309,969 | |||||||||
43,196 | Synopsys, Inc.(a) | 1,296,312 | |||||||||
2,606,281 | |||||||||||
Electronic Forms—4.9% | |||||||||||
72,744 | Adobe Systems, Inc.(a) | 2,441,289 | |||||||||
Enterprise Software/Services—10.4% | |||||||||||
90,249 | CA, Inc. | 2,384,378 | |||||||||
71,891 | PROS Holdings, Inc.(a) | 1,415,534 | |||||||||
34,264 | Tyler Technologies, Inc.(a) | 1,368,847 | |||||||||
5,168,759 | |||||||||||
Entertainment Software—5.2% | |||||||||||
200,612 | Activision Blizzard, Inc. | 2,581,877 | |||||||||
Internet Content-Information/News—2.8% | |||||||||||
59,959 | HealthStream, Inc.(a) | 1,374,260 | |||||||||
Internet Infrastructure Software—3.0% | |||||||||||
45,904 | TIBCO Software, Inc.(a) | 1,510,242 |
Number of Shares | Value | ||||||||||
Common Stocks (Continued) | |||||||||||
Medical Information Systems—12.9% | |||||||||||
67,914 | Allscripts Healthcare Solutions, Inc.(a) | $ | 752,487 | ||||||||
32,951 | Cerner Corp.(a) | 2,671,996 | |||||||||
21,396 | Computer Programs & Systems, Inc. | 1,274,988 | |||||||||
67,055 | Medidata Solutions, Inc.(a) | 1,737,395 | |||||||||
6,436,866 | |||||||||||
Motion Pictures & Services—2.7% | |||||||||||
34,088 | Dolby Laboratories, Inc., Class A(a) | 1,337,272 | |||||||||
Semiconductor Equipment—2.5% | |||||||||||
80,983 | Tessera Technologies, Inc. | 1,266,574 | |||||||||
Telecommunication Services—7.6% | |||||||||||
78,781 | Amdocs Ltd. (Guernsey) | 2,520,992 | |||||||||
139,839 | Premiere Global Services, Inc.(a) | 1,251,559 | |||||||||
3,772,551 | |||||||||||
Transactional Software—2.7% | |||||||||||
33,233 | ACI Worldwide, Inc.(a) | 1,324,667 | |||||||||
Total Common Stocks (Cost $44,799,242) | 49,720,588 | ||||||||||
Money Market Fund—0.2% | |||||||||||
73,616 | Goldman Sachs Financial Square Prime Obligations—Institutional Share Class (Cost $73,616) | 73,616 | |||||||||
Total Investments (Cost $44,872,858)—100.2% | 49,794,204 | ||||||||||
Liabilities in excess of other assets—(0.2)% | (84,506 | ) | |||||||||
Net Assets—100.0% | $ | 49,709,698 |
Notes to Schedule of Investments:
(a) Non-income producing security.
See Notes to Financial Statements.
49
Statements of Assets and Liabilities
April 30, 2012
PowerShares Dynamic Banking Portfolio (PJB) | PowerShares Dynamic Biotechnology & Genome Portfolio (PBE) | PowerShares Dynamic Building & Construction Portfolio (PKB) | PowerShares Dynamic Energy Exploration & Production Portfolio (PXE) | PowerShares Dynamic Food & Beverage Portfolio (PBJ) | PowerShares Dynamic Insurance Portfolio (PIC) | PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ) | |||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||||||
Investments, at value(a) | $ | 13,388,508 | $ | 137,127,585 | $ | 30,709,815 | $ | 67,722,856 | $ | 169,031,237 | $ | 7,452,017 | $ | 57,769,346 | |||||||||||||||||
Investment of securities lending collateral in affiliated money market fund, at value (Note 2H) | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Total investments, at value | 13,388,508 | 137,127,585 | 30,709,815 | 67,722,856 | 169,031,237 | 7,452,017 | 57,769,346 | ||||||||||||||||||||||||
Receivables: | |||||||||||||||||||||||||||||||
Expense waivers | 11,312 | — | 7,388 | 1,651 | 2,115 | 9,673 | 7,685 | ||||||||||||||||||||||||
Dividends | 4,371 | 23 | 7,661 | 10,056 | 195,004 | 1,255 | 16,970 | ||||||||||||||||||||||||
Investments sold | — | — | — | 2,077,369 | — | — | — | ||||||||||||||||||||||||
Affiliated securities lending dividends | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Shares sold | — | — | — | — | — | — | 4,439,807 | ||||||||||||||||||||||||
Total Assets | 13,404,191 | 137,127,608 | 30,724,864 | 69,811,932 | 169,228,356 | 7,462,945 | 62,233,808 | ||||||||||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||||||||||
Due to custodian | 1,028 | 1,757 | 1,121 | 1,374 | 1,884 | 979 | 1,211 | ||||||||||||||||||||||||
Payables: | |||||||||||||||||||||||||||||||
Shares repurchased | — | — | — | 1,220,486 | — | — | — | ||||||||||||||||||||||||
Investments purchased | — | — | — | 855,529 | — | — | 4,427,406 | ||||||||||||||||||||||||
Collateral upon return of securities loaned | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Expenses recaptured | — | 9,381 | — | — | — | — | — | ||||||||||||||||||||||||
Accrued advisory fees | 5,428 | 55,558 | 12,986 | 27,822 | 70,123 | 2,987 | 21,843 | ||||||||||||||||||||||||
Accrued expenses | 111,051 | 158,084 | 110,399 | 114,695 | 117,438 | 97,757 | 104,806 | ||||||||||||||||||||||||
Total Liabilities | 117,507 | 224,780 | 124,506 | 2,219,906 | 189,445 | 101,723 | 4,555,266 | ||||||||||||||||||||||||
NET ASSETS | $ | 13,286,684 | $ | 136,902,828 | $ | 30,600,358 | $ | 67,592,026 | $ | 169,038,911 | $ | 7,361,222 | $ | 57,678,542 | |||||||||||||||||
NET ASSETS CONSIST OF: | |||||||||||||||||||||||||||||||
Shares of beneficial interest | $ | 63,945,433 | $ | 274,398,650 | $ | 45,236,385 | $ | 105,920,215 | $ | 200,658,556 | $ | 19,852,265 | $ | 68,613,548 | |||||||||||||||||
Undistributed net investment income (loss) | 24,241 | (141,891 | ) | (2,284 | ) | 37,865 | 445,170 | 9,904 | 152,569 | ||||||||||||||||||||||
Undistributed net realized gain (loss) | (52,070,526 | ) | (155,563,246 | ) | (18,377,800 | ) | (38,457,264 | ) | (38,601,335 | ) | (12,969,406 | ) | (18,850,910 | ) | |||||||||||||||||
Net unrealized appreciation (depreciation) | 1,387,536 | 18,209,315 | 3,744,057 | 91,210 | 6,536,520 | 468,459 | 7,763,335 | ||||||||||||||||||||||||
Net Assets | $ | 13,286,684 | $ | 136,902,828 | $ | 30,600,358 | $ | 67,592,026 | $ | 169,038,911 | $ | 7,361,222 | $ | 57,678,542 | |||||||||||||||||
Shares outstanding (unlimited amount authorized, $0.01 par value) | 1,000,000 | 6,150,000 | 2,150,000 | 2,750,000 | 8,550,000 | 450,000 | 2,600,000 | ||||||||||||||||||||||||
Net asset value | $ | 13.29 | $ | 22.26 | $ | 14.23 | $ | 24.58 | $ | 19.77 | $ | 16.36 | $ | 22.18 | |||||||||||||||||
Share price | $ | 13.28 | $ | 22.21 | $ | 14.20 | $ | 24.57 | $ | 19.77 | $ | 16.36 | $ | 22.20 | |||||||||||||||||
Investments, at cost | $ | 12,000,972 | $ | 118,918,270 | $ | 26,965,758 | $ | 67,631,646 | $ | 162,494,717 | $ | 6,983,558 | $ | 50,006,011 | |||||||||||||||||
Investments of securities lending collateral in affiliated money market fund, at cost | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Total investments, at cost | $ | 12,000,972 | $ | 118,918,270 | $ | 26,965,758 | $ | 67,631,646 | $ | 162,494,717 | $ | 6,983,558 | $ | 50,006,011 | |||||||||||||||||
(a)Includes securities on loan with an aggregate value of | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — |
See Notes to Financial Statements.
50
PowerShares Dynamic Media Portfolio (PBS) | PowerShares Dynamic Networking Portfolio (PXQ) | PowerShares Dynamic Oil & Gas Services Portfolio (PXJ) | PowerShares Dynamic Pharmaceuticals Portfolio (PJP) | PowerShares Dynamic Retail Portfolio (PMR) | PowerShares Dynamic Semiconductors Portfolio (PSI) | PowerShares Dynamic Software Portfolio (PSJ) | |||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||||||
Investments, at value(a) | $ | 138,084,617 | $ | 81,874,130 | $ | 147,500,730 | $ | 270,384,921 | $ | 76,771,002 | $ | 21,385,005 | $ | 49,794,204 | |||||||||||||||||
Investment of securities lending collateral in affiliated money market fund, at value (Note 2H) | 10,883,525 | — | — | — | — | — | — | ||||||||||||||||||||||||
Total investments, at value | 148,968,142 | 81,874,130 | 147,500,730 | 270,384,921 | 76,771,002 | 21,385,005 | 49,794,204 | ||||||||||||||||||||||||
Receivables: | |||||||||||||||||||||||||||||||
Expense waivers | 3,023 | 11,075 | — | — | 3,338 | — | 6,507 | ||||||||||||||||||||||||
Dividends | 15,168 | 5,635 | 126,198 | 248,398 | 4,987 | 12 | 36,119 | ||||||||||||||||||||||||
Investments sold | 5,399,027 | 1,385,372 | 75,467 | — | — | — | — | ||||||||||||||||||||||||
Affiliated securities lending dividends | 2,056 | — | — | — | — | — | — | ||||||||||||||||||||||||
Shares sold | — | — | — | 4,802,396 | — | — | — | ||||||||||||||||||||||||
Total Assets | 154,387,416 | 83,276,212 | 147,702,395 | 275,435,715 | 76,779,327 | 21,385,017 | 49,836,830 | ||||||||||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||||||||||
Due to custodian | 1,705 | 1,492 | 1,842 | 2,325 | 1,334 | 1,070 | 1,194 | ||||||||||||||||||||||||
Payables: | |||||||||||||||||||||||||||||||
Shares repurchased | 1,495,399 | 1,385,401 | — | — | — | — | — | ||||||||||||||||||||||||
Investments purchased | 3,856,939 | — | — | 4,795,181 | — | — | — | ||||||||||||||||||||||||
Collateral upon return of securities loaned | 10,883,525 | — | — | — | — | — | — | ||||||||||||||||||||||||
Expenses recaptured | — | — | 7,172 | 15,923 | — | 13,362 | — | ||||||||||||||||||||||||
Accrued advisory fees | 57,734 | 37,140 | 60,352 | 106,620 | 31,823 | 8,655 | 20,163 | ||||||||||||||||||||||||
Accrued expenses | 117,442 | 113,521 | 148,294 | 130,320 | 103,041 | 100,519 | 105,775 | ||||||||||||||||||||||||
Total Liabilities | 16,412,744 | 1,537,554 | 217,660 | 5,050,369 | 136,198 | 123,606 | 127,132 | ||||||||||||||||||||||||
NET ASSETS | $ | 137,974,672 | $ | 81,738,658 | $ | 147,484,735 | $ | 270,385,346 | $ | 76,643,129 | $ | 21,261,411 | $ | 49,709,698 | |||||||||||||||||
NET ASSETS CONSIST OF: | |||||||||||||||||||||||||||||||
Shares of beneficial interest | $ | 164,189,968 | $ | 102,457,178 | $ | 347,157,553 | $ | 271,549,024 | $ | 83,925,811 | $ | 71,441,529 | $ | 66,744,196 | |||||||||||||||||
Undistributed net investment income (loss) | 96,212 | (72,698 | ) | (13,104 | ) | 394,978 | 69,645 | 49,412 | (57,902 | ) | |||||||||||||||||||||
Undistributed net realized gain (loss) | (36,952,570 | ) | (22,552,558 | ) | (183,248,376 | ) | (29,983,240 | ) | (13,093,176 | ) | (51,476,047 | ) | (21,897,942 | ) | |||||||||||||||||
Net unrealized appreciation (depreciation) | 10,641,062 | 1,906,736 | (16,411,338 | ) | 28,424,584 | 5,740,849 | 1,246,517 | 4,921,346 | |||||||||||||||||||||||
Net Assets | $ | 137,974,672 | $ | 81,738,658 | $ | 147,484,735 | $ | 270,385,346 | $ | 76,643,129 | $ | 21,261,411 | $ | 49,709,698 | |||||||||||||||||
Shares outstanding (unlimited amount authorized, $0.01 par value) | 9,300,000 | 2,950,000 | 7,200,000 | 8,450,000 | 2,950,000 | 1,350,000 | 1,850,000 | ||||||||||||||||||||||||
Net asset value | $ | 14.84 | $ | 27.71 | $ | 20.48 | $ | 32.00 | $ | 25.98 | $ | 15.75 | $ | 26.87 | |||||||||||||||||
Share price | $ | 14.84 | $ | 27.68 | $ | 20.48 | $ | 31.99 | $ | 25.98 | $ | 15.71 | $ | 26.87 | |||||||||||||||||
Investments, at cost | $ | 127,443,555 | $ | 79,967,394 | $ | 163,912,068 | $ | 241,960,337 | $ | 71,030,153 | $ | 20,138,488 | $ | 44,872,858 | |||||||||||||||||
Investments of securities lending collateral in affiliated money market fund, at cost | $ | 10,883,525 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||
Total investments, at cost | $ | 138,327,080 | $ | 79,967,394 | $ | 163,912,068 | $ | 241,960,337 | $ | 71,030,153 | $ | 20,138,488 | $ | 44,872,858 | |||||||||||||||||
(a)Includes securities on loan with an aggregate value of | $ | 10,467,536 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — |
51
Statements of Operations
Year Ended April 30, 2012
PowerShares Dynamic Banking Portfolio (PJB) | PowerShares Dynamic Biotechnology & Genome Portfolio (PBE) | PowerShares Dynamic Building & Construction Portfolio (PKB) | PowerShares Dynamic Energy Exploration & Production Portfolio (PXE) | PowerShares Dynamic Food & Beverage Portfolio (PBJ) | PowerShares Dynamic Insurance Portfolio (PIC) | PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ) | |||||||||||||||||||||||||
INVESTMENT INCOME: | |||||||||||||||||||||||||||||||
Unaffiliated dividend income | $ | 284,884 | $ | 690,663 | $ | 215,177 | $ | 1,131,157 | $ | 3,645,768 | $ | 167,256 | $ | 713,918 | |||||||||||||||||
Affiliated securities lending income | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Foreign withholding tax | — | — | — | — | — | — | — | ||||||||||||||||||||||||
Total Income | 284,884 | 690,663 | 215,177 | 1,131,157 | 3,645,768 | 167,256 | 713,918 | ||||||||||||||||||||||||
EXPENSES: | |||||||||||||||||||||||||||||||
Advisory fees | 65,373 | 819,945 | 142,762 | 387,319 | 1,034,050 | 39,060 | 249,646 | ||||||||||||||||||||||||
Accounting & administration fees | 67,460 | 67,460 | 67,460 | 67,460 | 67,460 | 67,460 | 67,460 | ||||||||||||||||||||||||
Professional fees | 29,999 | 39,720 | 31,079 | 33,023 | 33,440 | 29,728 | 31,862 | ||||||||||||||||||||||||
Custodian & transfer agent fees | 8,449 | 15,635 | 13,850 | 12,907 | 24,635 | 8,501 | 8,718 | ||||||||||||||||||||||||
Sub-licensing | 6,539 | 49,197 | 8,566 | 23,239 | 62,043 | 2,344 | 14,979 | ||||||||||||||||||||||||
Trustees fees | 5,473 | 9,639 | 6,013 | 7,742 | 9,505 | 5,278 | 6,477 | ||||||||||||||||||||||||
Recapture (Note 3) | 43,001 | 19,366 | — | 650 | 60,526 | 15,113 | — | ||||||||||||||||||||||||
Printing | (29,948 | ) | 19,994 | 7,112 | 5,277 | 9,284 | — | 11,998 | |||||||||||||||||||||||
Other expenses | 10,107 | 12,769 | 10,405 | 27,300 | 12,453 | 827 | 10,725 | ||||||||||||||||||||||||
Total Expenses | 206,453 | 1,053,725 | 287,247 | 564,917 | 1,313,396 | 168,311 | 401,865 | ||||||||||||||||||||||||
Waivers | (121,480 | ) | (20,594 | ) | (107,359 | ) | (61,176 | ) | (10,493 | ) | (119,095 | ) | (87,312 | ) | |||||||||||||||||
Net Expenses | 84,973 | 1,033,131 | 179,888 | 503,741 | 1,302,903 | 49,216 | 314,553 | ||||||||||||||||||||||||
Net Investment Income (Loss) | 199,911 | (342,468 | ) | 35,289 | 627,416 | 2,342,865 | 118,040 | 399,365 | |||||||||||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS): | |||||||||||||||||||||||||||||||
Net realized gain (loss) from: | |||||||||||||||||||||||||||||||
Investment securities | (1,608,005 | ) | (19,822,749 | ) | (2,833,211 | ) | (4,624,032 | ) | (19,353,428 | ) | (909,392 | ) | (4,904,857 | ) | |||||||||||||||||
In-kind redemptions | (326,477 | ) | 27,134,671 | 4,717,472 | 15,443,811 | 10,265,226 | 776,210 | 5,235,973 | |||||||||||||||||||||||
Net realized gain (loss) | (1,934,482 | ) | 7,311,922 | 1,884,261 | 10,819,779 | (9,088,202 | ) | (133,182 | ) | 331,116 | |||||||||||||||||||||
Net change in unrealized appreciation (depreciation) on investment securities | 1,742,605 | (24,826,945 | ) | (2,989,304 | ) | (23,953,564 | ) | (3,120,021 | ) | (527,154 | ) | 1,597,276 | |||||||||||||||||||
Net realized and unrealized gain (loss) | (191,877 | ) | (17,515,023 | ) | (1,105,043 | ) | (13,133,785 | ) | (12,208,223 | ) | (660,336 | ) | 1,928,392 | ||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | 8,034 | $ | (17,857,491 | ) | $ | (1,069,754 | ) | $ | (12,506,369 | ) | $ | (9,865,358 | ) | $ | (542,296 | ) | $ | 2,327,757 |
See Notes to Financial Statements.
52
PowerShares Dynamic Media Portfolio (PBS) | PowerShares Dynamic Networking Portfolio (PXQ) | PowerShares Dynamic Oil & Gas Services Portfolio (PXJ) | PowerShares Dynamic Pharmaceuticals Portfolio (PJP) | PowerShares Dynamic Retail Portfolio (PMR) | PowerShares Dynamic Semiconductors Portfolio (PSI) | PowerShares Dynamic Software Portfolio (PSJ) | |||||||||||||||||||||||||
INVESTMENT INCOME: | |||||||||||||||||||||||||||||||
Unaffiliated dividend income | $ | 1,627,975 | $ | 447,287 | $ | 1,156,127 | $ | 2,588,724 | $ | 504,140 | $ | 270,169 | $ | 187,354 | |||||||||||||||||
Affiliated securities lending income | 2,731 | — | — | — | — | — | — | ||||||||||||||||||||||||
Foreign withholding tax | — | — | (7,074 | ) | — | — | — | — | |||||||||||||||||||||||
Total Income | 1,630,706 | 447,287 | 1,149,053 | 2,588,724 | 504,140 | 270,169 | 187,354 | ||||||||||||||||||||||||
EXPENSES: | |||||||||||||||||||||||||||||||
Advisory fees | 661,683 | 551,946 | 959,139 | 926,207 | 183,231 | 128,526 | 278,130 | ||||||||||||||||||||||||
Accounting & administration fees | 67,460 | 67,460 | 68,344 | 67,460 | 67,460 | 67,460 | 67,460 | ||||||||||||||||||||||||
Professional fees | 34,578 | 31,801 | 37,496 | 32,225 | 29,437 | 30,340 | 32,301 | ||||||||||||||||||||||||
Custodian & transfer agent fees | 12,114 | 13,698 | 16,594 | 13,580 | 8,367 | 9,599 | 8,398 | ||||||||||||||||||||||||
Sub-licensing | 39,701 | 33,117 | 57,549 | 55,573 | 10,994 | 7,713 | 16,688 | ||||||||||||||||||||||||
Trustees fees | 9,141 | 9,155 | 12,088 | 8,912 | 5,650 | 5,991 | 6,868 | ||||||||||||||||||||||||
Recapture (Note 3) | 1,052 | 2,165 | 33,157 | 68,630 | — | 79 | — | ||||||||||||||||||||||||
Printing | 20,042 | 23,076 | 9,968 | — | 3,033 | 1,682 | 11,580 | ||||||||||||||||||||||||
Other expenses | 12,203 | 10,985 | 13,232 | 4,897 | 10,575 | 10,116 | 10,951 | ||||||||||||||||||||||||
Total Expenses | 857,974 | 743,403 | 1,207,567 | 1,177,484 | 318,747 | 261,506 | 432,376 | ||||||||||||||||||||||||
Waivers | (24,254 | ) | (47,952 | ) | (3,102 | ) | (10,465 | ) | (87,876 | ) | (99,564 | ) | (81,932 | ) | |||||||||||||||||
Net Expenses | 833,720 | 695,451 | 1,204,465 | 1,167,019 | 230,871 | 161,942 | 350,444 | ||||||||||||||||||||||||
Net Investment Income (Loss) | 796,986 | (248,164 | ) | (55,412 | ) | 1,421,705 | 273,269 | 108,227 | (163,090 | ) | |||||||||||||||||||||
REALIZED AND UNREALIZED GAIN (LOSS): | |||||||||||||||||||||||||||||||
Net realized gain (loss) from: | |||||||||||||||||||||||||||||||
Investment securities | (15,015,083 | ) | (12,707,594 | ) | (15,676,069 | ) | (7,242,639 | ) | (3,420,279 | ) | (4,154,222 | ) | (4,025,669 | ) | |||||||||||||||||
In-kind redemptions | 12,800,915 | 9,765,250 | 39,420,762 | 22,468,288 | 5,821,406 | 3,909,365 | 5,348,611 | ||||||||||||||||||||||||
Net realized gain (loss) | (2,214,168 | ) | (2,942,344 | ) | 23,744,693 | 15,225,649 | 2,401,127 | (244,857 | ) | 1,322,942 | |||||||||||||||||||||
Net change in unrealized appreciation (depreciation) on investment securities | (8,907,435 | ) | (16,251,583 | ) | (87,288,071 | ) | 18,639,753 | 4,319,623 | (5,838,142 | ) | (6,796,711 | ) | |||||||||||||||||||
Net realized and unrealized gain (loss) | (11,121,603 | ) | (19,193,927 | ) | (63,543,378 | ) | 33,865,402 | 6,720,750 | (6,082,999 | ) | (5,473,769 | ) | |||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | (10,324,617 | ) | $ | (19,442,091 | ) | $ | (63,598,790 | ) | $ | 35,287,107 | $ | 6,994,019 | $ | (5,974,772 | ) | $ | (5,636,859 | ) |
53
Statements of Changes in Net Assets
PowerShares Dynamic Banking Portfolio (PJB) | PowerShares Dynamic Biotechnology & Genome Portfolio (PBE) | PowerShares Dynamic Building & Construction Portfolio (PKB) | |||||||||||||||||||||||||
Year Ended April 30, 2012 | Year Ended April 30, 2011 | Year Ended April 30, 2012 | Year Ended April 30, 2011 | Year Ended April 30, 2012 | Year Ended April 30, 2011 | ||||||||||||||||||||||
OPERATIONS: | |||||||||||||||||||||||||||
Net investment income (loss) | $ | 199,911 | $ | 376,391 | $ | (342,468 | ) | $ | (435,530 | ) | $ | 35,289 | $ | 2,158,195 | |||||||||||||
Net realized gain (loss) | (1,934,482 | ) | 518,199 | 7,311,922 | 10,256,141 | 1,884,261 | 2,616,902 | ||||||||||||||||||||
Net change in unrealized appreciation (depreciation) | 1,742,605 | (3,847,300 | ) | (24,826,945 | ) | 19,153,819 | (2,989,304 | ) | (3,168,649 | ) | |||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 8,034 | (2,952,710 | ) | (17,857,491 | ) | 28,974,430 | (1,069,754 | ) | 1,606,448 | ||||||||||||||||||
Undistributed net investment income (loss) included in the price of units issued and redeemed | 57,154 | (30,629 | ) | 116,365 | 9,394 | 57,393 | 97,010 | ||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||||||||||||
Net investment income | (309,670 | ) | (237,874 | ) | — | — | (32,808 | ) | (2,169,779 | ) | |||||||||||||||||
Return of capital | — | — | — | — | — | (404,914 | ) | ||||||||||||||||||||
Total distributions to shareholders | (309,670 | ) | (237,874 | ) | — | — | (32,808 | ) | (2,574,693 | ) | |||||||||||||||||
SHAREHOLDER TRANSACTIONS: | |||||||||||||||||||||||||||
Proceeds from shares sold | 13,077,022 | 32,063,583 | 69,294,542 | 74,034,028 | 29,766,601 | 38,196,035 | |||||||||||||||||||||
Value of shares repurchased | (19,608,702 | ) | (34,156,888 | ) | (132,087,390 | ) | (99,845,800 | ) | (38,267,870 | ) | (47,137,974 | ) | |||||||||||||||
Net income (loss) equalization | (57,154 | ) | 30,629 | (116,365 | ) | (9,394 | ) | (57,393 | ) | (97,010 | ) | ||||||||||||||||
Net increase (decrease) in net assets resulting from shares transactions | (6,588,834 | ) | (2,062,676 | ) | (62,909,213 | ) | (25,821,166 | ) | (8,558,662 | ) | (9,038,949 | ) | |||||||||||||||
Increase (Decrease) in Net Assets | (6,833,316 | ) | (5,283,889 | ) | (80,650,339 | ) | 3,162,658 | (9,603,831 | ) | (9,910,184 | ) | ||||||||||||||||
NET ASSETS: | |||||||||||||||||||||||||||
Beginning of year | 20,120,000 | 25,403,889 | 217,553,167 | 214,390,509 | 40,204,189 | 50,114,373 | |||||||||||||||||||||
End of year | $ | 13,286,684 | $ | 20,120,000 | $ | 136,902,828 | $ | 217,553,167 | $ | 30,600,358 | $ | 40,204,189 | |||||||||||||||
Undistributed net investment income (loss) at end of year | $ | 24,241 | $ | 134,000 | $ | (141,891 | ) | $ | (9,385 | ) | $ | (2,284 | ) | $ | (4,765 | ) | |||||||||||
CHANGES IN SHARES OUTSTANDING: | |||||||||||||||||||||||||||
Shares sold | 1,150,000 | 2,450,000 | 3,200,000 | 3,850,000 | 2,300,000 | 2,950,000 | |||||||||||||||||||||
Shares repurchased | (1,700,000 | ) | (2,700,000 | ) | (6,450,000 | ) | (5,350,000 | ) | (3,000,000 | ) | (3,700,000 | ) | |||||||||||||||
Shares outstanding, beginning of year | 1,550,000 | 1,800,000 | 9,400,000 | 10,900,000 | 2,850,000 | 3,600,000 | |||||||||||||||||||||
Shares outstanding, end of year | 1,000,000 | 1,550,000 | 6,150,000 | 9,400,000 | 2,150,000 | 2,850,000 |
See Notes to Financial Statements.
54
PowerShares Dynamic Energy Exploration & Production Portfolio (PXE) | PowerShares Dynamic Food & Beverage Portfolio (PBJ) | PowerShares Dynamic Insurance Portfolio (PIC) | |||||||||||||||||||||||||
Year Ended April 30, 2012 | Year Ended April 30, 2011 | Year Ended April 30, 2012 | Year Ended April 30, 2011 | Year Ended April 30, 2012 | Year Ended April 30, 2011 | ||||||||||||||||||||||
OPERATIONS: | |||||||||||||||||||||||||||
Net investment income (loss) | $ | 627,416 | $ | 416,215 | $ | 2,342,865 | $ | 1,283,898 | $ | 118,040 | $ | 408,667 | |||||||||||||||
Net realized gain (loss) | 10,819,779 | 14,780,556 | (9,088,202 | ) | 19,030,299 | (133,182 | ) | 2,267,831 | |||||||||||||||||||
Net change in unrealized appreciation (depreciation) | (23,953,564 | ) | 16,596,744 | (3,120,021 | ) | 1,766,666 | (527,154 | ) | (753,033 | ) | |||||||||||||||||
Net increase (decrease) in net assets resulting from operations | (12,506,369 | ) | 31,793,515 | (9,865,358 | ) | 22,080,863 | (542,296 | ) | 1,923,465 | ||||||||||||||||||
Undistributed net investment income (loss) included in the price of units issued and redeemed | 1,590 | (6,807 | ) | 372,016 | 95,051 | 4,361 | 17,420 | ||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||||||||||||
Net investment income | (1,050,119 | ) | (381,171 | ) | (2,109,710 | ) | (1,251,575 | ) | (153,638 | ) | (389,896 | ) | |||||||||||||||
Return of capital | — | — | — | — | — | — | |||||||||||||||||||||
Total distributions to shareholders | (1,050,119 | ) | (381,171 | ) | (2,109,710 | ) | (1,251,575 | ) | (153,638 | ) | (389,896 | ) | |||||||||||||||
SHAREHOLDER TRANSACTIONS: | |||||||||||||||||||||||||||
Proceeds from shares sold | 59,036,092 | 99,574,499 | 464,466,696 | 126,890,276 | 6,341,936 | 16,161,395 | |||||||||||||||||||||
Value of shares repurchased | (96,863,044 | ) | (71,993,971 | ) | (375,333,878 | ) | (128,633,086 | ) | (7,736,667 | ) | (26,834,729 | ) | |||||||||||||||
Net income (loss) equalization | (1,590 | ) | 6,807 | (372,016 | ) | (95,051 | ) | (4,361 | ) | (17,420 | ) | ||||||||||||||||
Net increase (decrease) in net assets resulting from shares transactions | (37,828,542 | ) | 27,587,335 | 88,760,802 | (1,837,861 | ) | (1,399,092 | ) | (10,690,754 | ) | |||||||||||||||||
Increase (Decrease) in Net Assets | (51,383,440 | ) | 58,992,872 | 77,157,750 | 19,086,478 | (2,090,665 | ) | (9,139,765 | ) | ||||||||||||||||||
NET ASSETS: | |||||||||||||||||||||||||||
Beginning of year | 118,975,466 | 59,982,594 | 91,881,161 | 72,794,683 | 9,451,887 | 18,591,652 | |||||||||||||||||||||
End of year | $ | 67,592,026 | $ | 118,975,466 | $ | 169,038,911 | $ | 91,881,161 | $ | 7,361,222 | $ | 9,451,887 | |||||||||||||||
Undistributed net investment income (loss) at end of year | $ | 37,865 | $ | 154,125 | $ | 445,170 | $ | 212,015 | $ | 9,904 | $ | 45,502 | |||||||||||||||
CHANGES IN SHARES OUTSTANDING: | |||||||||||||||||||||||||||
Shares sold | 2,450,000 | 4,500,000 | 23,600,000 | 7,500,000 | 400,000 | 1,050,000 | |||||||||||||||||||||
Shares repurchased | (4,000,000 | ) | (3,450,000 | ) | (19,700,000 | ) | (7,400,000 | ) | (500,000 | ) | (1,700,000 | ) | |||||||||||||||
Shares outstanding, beginning of year | 4,300,000 | 3,250,000 | 4,650,000 | 4,550,000 | 550,000 | 1,200,000 | |||||||||||||||||||||
Shares outstanding, end of year | 2,750,000 | 4,300,000 | 8,550,000 | 4,650,000 | 450,000 | 550,000 |
55
Statements of Changes in Net Assets (Continued)
PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ) | PowerShares Dynamic Media Portfolio (PBS) | PowerShares Dynamic Networking Portfolio (PXQ) | |||||||||||||||||||||||||
Year Ended April 30, 2012 | Year Ended April 30, 2011 | Year Ended April 30, 2012 | Year Ended April 30, 2011 | Year Ended April 30, 2012 | Year Ended April 30, 2011 | ||||||||||||||||||||||
OPERATIONS: | |||||||||||||||||||||||||||
Net investment income (loss) | $ | 399,365 | $ | 545,932 | $ | 796,986 | $ | 564,932 | $ | (248,164 | ) | $ | (369,344 | ) | |||||||||||||
Net realized gain (loss) | 331,116 | 7,400,979 | (2,214,168 | ) | 5,575,262 | (2,942,344 | ) | 20,101,332 | |||||||||||||||||||
Net change in unrealized appreciation (depreciation) | 1,597,276 | (97,341 | ) | (8,907,435 | ) | 3,373,815 | (16,251,583 | ) | 10,562,510 | ||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 2,327,757 | 7,849,570 | (10,324,617 | ) | 9,514,009 | (19,442,091 | ) | 30,294,498 | |||||||||||||||||||
Undistributed net investment income (loss) included in the price of units issued and redeemed | 155,093 | 181,536 | 56,706 | (54,203 | ) | 332,128 | 58,770 | ||||||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||||||||||||
Net investment income | (312,008 | ) | (501,284 | ) | (855,476 | ) | (407,112 | ) | — | — | |||||||||||||||||
Return of capital | — | — | — | — | — | (461,519 | ) | ||||||||||||||||||||
Total distributions to shareholders | (312,008 | ) | (501,284 | ) | (855,476 | ) | (407,112 | ) | — | (461,519 | ) | ||||||||||||||||
SHAREHOLDER TRANSACTIONS: | |||||||||||||||||||||||||||
Proceeds from shares sold | 72,272,447 | 68,818,149 | 112,819,604 | 128,723,685 | 31,046,696 | 188,768,082 | |||||||||||||||||||||
Value of shares repurchased | (77,542,805 | ) | (78,027,663 | ) | (120,546,328 | ) | (106,824,157 | ) | (102,157,431 | ) | (93,746,582 | ) | |||||||||||||||
Net income (loss) equalization | (155,093 | ) | (181,536 | ) | (56,706 | ) | 54,203 | (332,128 | ) | (58,770 | ) | ||||||||||||||||
Net increase (decrease) in net assets resulting from shares transactions | (5,425,451 | ) | (9,391,050 | ) | (7,783,430 | ) | 21,953,731 | (71,442,863 | ) | 94,962,730 | |||||||||||||||||
Increase (Decrease) in Net Assets | (3,254,609 | ) | (1,861,228 | ) | (18,906,817 | ) | 31,006,425 | (90,552,826 | ) | 124,854,479 | |||||||||||||||||
NET ASSETS: | |||||||||||||||||||||||||||
Beginning of year | 60,933,151 | 62,794,379 | 156,881,489 | 125,875,064 | 172,291,484 | 47,437,005 | |||||||||||||||||||||
End of year | $ | 57,678,542 | $ | 60,933,151 | $ | 137,974,672 | $ | 156,881,489 | $ | 81,738,658 | $ | 172,291,484 | |||||||||||||||
Undistributed net investment income (loss) at end of year | $ | 152,569 | $ | 65,212 | $ | 96,212 | $ | 154,702 | $ | (72,698 | ) | $ | (4,573 | ) | |||||||||||||
CHANGES IN SHARES OUTSTANDING: | |||||||||||||||||||||||||||
Shares sold | 3,650,000 | 3,950,000 | 7,900,000 | 9,250,000 | 1,150,000 | 7,550,000 | |||||||||||||||||||||
Shares repurchased | (4,200,000 | ) | (4,600,000 | ) | (8,650,000 | ) | (8,400,000 | ) | (4,100,000 | ) | (3,900,000 | ) | |||||||||||||||
Shares outstanding, beginning of year | 3,150,000 | 3,800,000 | 10,050,000 | 9,200,000 | 5,900,000 | 2,250,000 | |||||||||||||||||||||
Shares outstanding, end of year | 2,600,000 | 3,150,000 | 9,300,000 | 10,050,000 | 2,950,000 | 5,900,000 |
See Notes to Financial Statements.
56
PowerShares Dynamic Oil & Gas Services Portfolio (PXJ) | PowerShares Dynamic Pharmaceuticals Portfolio (PJP) | PowerShares Dynamic Retail Portfolio (PMR) | |||||||||||||||||||||||||
Year Ended April 30, 2012 | Year Ended April 30, 2011 | Year Ended April 30, 2012 | Year Ended April 30, 2011 | Year Ended April 30, 2012 | Year Ended April 30, 2011 | ||||||||||||||||||||||
OPERATIONS: | |||||||||||||||||||||||||||
Net investment income (loss) | $ | (55,412 | ) | $ | 673,342 | $ | 1,421,705 | $ | 558,048 | $ | 273,269 | $ | 125,087 | ||||||||||||||
Net realized gain (loss) | 23,744,693 | 32,839,598 | 15,225,649 | 10,420,419 | 2,401,127 | (942,596 | ) | ||||||||||||||||||||
Net change in unrealized appreciation (depreciation) | (87,288,071 | ) | 46,256,386 | 18,639,753 | 10,464,256 | 4,319,623 | 2,278,984 | ||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | (63,598,790 | ) | 79,769,326 | 35,287,107 | 21,442,723 | 6,994,019 | 1,461,475 | ||||||||||||||||||||
Undistributed net investment income (loss) included in the price of units issued and redeemed | (39,495 | ) | 93,367 | (266,249 | ) | (28,877 | ) | (486,643 | ) | �� | 93,007 | ||||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||||||||||||
Net investment income | (18,614 | ) | (682,880 | ) | (1,193,747 | ) | (420,073 | ) | (208,592 | ) | (139,474 | ) | |||||||||||||||
Return of capital | — | — | — | — | — | — | |||||||||||||||||||||
Total distributions to shareholders | (18,614 | ) | (682,880 | ) | (1,193,747 | ) | (420,073 | ) | (208,592 | ) | (139,474 | ) | |||||||||||||||
SHAREHOLDER TRANSACTIONS: | |||||||||||||||||||||||||||
Proceeds from shares sold | 172,404,147 | 202,997,550 | 296,418,279 | 49,850,080 | 170,377,995 | 21,841,312 | |||||||||||||||||||||
Value of shares repurchased | (271,274,105 | ) | (142,469,635 | ) | (147,732,745 | ) | (40,928,257 | ) | (113,650,528 | ) | (34,305,896 | ) | |||||||||||||||
Net income (loss) equalization | 39,495 | (93,367 | ) | 266,249 | 28,877 | 486,643 | (93,007 | ) | |||||||||||||||||||
Net increase (decrease) in net assets resulting from shares transactions | (98,830,463 | ) | 60,434,548 | 148,951,783 | 8,950,700 | 57,214,110 | (12,557,591 | ) | |||||||||||||||||||
Increase (Decrease) in Net Assets | (162,487,362 | ) | 139,614,361 | 182,778,894 | 29,944,473 | 63,512,894 | (11,142,583 | ) | |||||||||||||||||||
NET ASSETS: | |||||||||||||||||||||||||||
Beginning of year | 309,972,097 | 170,357,736 | 87,606,452 | 57,661,979 | 13,130,235 | 24,272,818 | |||||||||||||||||||||
End of year | $ | 147,484,735 | $ | 309,972,097 | $ | 270,385,346 | $ | 87,606,452 | $ | 76,643,129 | $ | 13,130,235 | |||||||||||||||
Undistributed net investment income (loss) at end of year | $ | (13,104 | ) | $ | (10,714 | ) | $ | 394,978 | $ | 167,020 | $ | 69,645 | $ | 4,752 | |||||||||||||
CHANGES IN SHARES OUTSTANDING: | |||||||||||||||||||||||||||
Shares sold | 8,100,000 | 9,300,000 | 10,800,000 | 2,300,000 | 7,600,000 | 1,150,000 | |||||||||||||||||||||
Shares repurchased | (12,650,000 | ) | (7,000,000 | ) | (5,700,000 | ) | (1,900,000 | ) | (5,250,000 | ) | (1,850,000 | ) | |||||||||||||||
Shares outstanding, beginning of year | 11,750,000 | 9,450,000 | 3,350,000 | 2,950,000 | 600,000 | 1,300,000 | |||||||||||||||||||||
Shares outstanding, end of year | 7,200,000 | 11,750,000 | 8,450,000 | 3,350,000 | 2,950,000 | 600,000 |
57
Statements of Changes in Net Assets (Continued)
PowerShares Dynamic Semiconductors Portfolio (PSI) | PowerShares Dynamic Software Portfolio (PSJ) | ||||||||||||||||||
Year Ended April 30, 2012 | Year Ended April 30, 2011 | Year Ended April 30, 2012 | Year Ended April 30, 2011 | ||||||||||||||||
OPERATIONS: | |||||||||||||||||||
Net investment income (loss) | $ | 108,227 | $ | 13,739 | $ | (163,090 | ) | $ | (184,944 | ) | |||||||||
Net realized gain (loss) | (244,857 | ) | 2,978,522 | 1,322,942 | 9,064,219 | ||||||||||||||
Net change in unrealized appreciation (depreciation) | (5,838,142 | ) | 4,860,820 | (6,796,711 | ) | 3,438,040 | |||||||||||||
Net increase (decrease) in net assets resulting from operations | (5,974,772 | ) | 7,853,081 | (5,636,859 | ) | 12,317,315 | |||||||||||||
Undistributed net investment income (loss) included in the price of units issued and redeemed | (833 | ) | 270 | 17,484 | 30,155 | ||||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS FROM: | |||||||||||||||||||
Net investment income | (53,536 | ) | (15,131 | ) | — | — | |||||||||||||
Return of capital | — | (55,929 | ) | — | — | ||||||||||||||
Total distributions to shareholders | (53,536 | ) | (71,060 | ) | — | — | |||||||||||||
SHAREHOLDER TRANSACTIONS: | |||||||||||||||||||
Proceeds from shares sold | 37,543,382 | 39,421,025 | 62,313,336 | 72,699,105 | |||||||||||||||
Value of shares repurchased | (53,002,564 | ) | (33,027,565 | ) | (90,740,602 | ) | (68,868,869 | ) | |||||||||||
Net income (loss) equalization | 833 | (270 | ) | (17,484 | ) | (30,155 | ) | ||||||||||||
Net increase (decrease) in net assets resulting from shares transactions | (15,458,349 | ) | 6,393,190 | (28,444,750 | ) | 3,800,081 | |||||||||||||
Increase (Decrease) in Net Assets | (21,487,490 | ) | 14,175,481 | (34,064,125 | ) | 16,147,551 | |||||||||||||
NET ASSETS: | |||||||||||||||||||
Beginning of year | 42,748,901 | 28,573,420 | 83,773,823 | 67,626,272 | |||||||||||||||
End of year | $ | 21,261,411 | $ | 42,748,901 | $ | 49,709,698 | $ | 83,773,823 | |||||||||||
Undistributed net investment income (loss) at end of year | $ | 49,412 | $ | (5,279 | ) | $ | (57,902 | ) | $ | (5,106 | ) | ||||||||
CHANGES IN SHARES OUTSTANDING: | |||||||||||||||||||
Shares sold | 2,300,000 | 2,500,000 | 2,550,000 | 3,050,000 | |||||||||||||||
Shares repurchased | (3,300,000 | ) | (2,150,000 | ) | (3,750,000 | ) | (3,000,000 | ) | |||||||||||
Shares outstanding, beginning of year | 2,350,000 | 2,000,000 | 3,050,000 | 3,000,000 | |||||||||||||||
Shares outstanding, end of year | 1,350,000 | 2,350,000 | 1,850,000 | 3,050,000 |
See Notes to Financial Statements.
58
Financial Highlights
PowerShares Dynamic Banking Portfolio (PJB)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 12.98 | $ | 14.11 | $ | 12.46 | $ | 19.57 | $ | 23.68 | |||||||||||||
Net investment income(a) | 0.18 | 0.20 | 0.24 | 0.46 | 0.52 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.41 | (1.19 | ) | 1.89 | (7.04 | ) | (4.22 | ) | |||||||||||||||
Total from investment operations | 0.59 | (0.99 | ) | 2.13 | (6.58 | ) | (3.70 | ) | |||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.28 | ) | (0.14 | ) | (0.48 | ) | (0.53 | ) | (0.41 | ) | |||||||||||||
Return of capital | — | — | (0.00 | )(b) | — | — | |||||||||||||||||
Total distributions | (0.28 | ) | (0.14 | ) | (0.48 | ) | (0.53 | ) | (0.41 | ) | |||||||||||||
Net asset value at end of period | $ | 13.29 | $ | 12.98 | $ | 14.11 | $ | 12.46 | $ | 19.57 | |||||||||||||
Share price at end of period(c) | $ | 13.28 | $ | 12.98 | $ | 14.11 | $ | 12.43 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN:(d) | 4.82 | % | (6.98 | )% | 17.91 | % | (34.34 | )% | (15.80 | )% | |||||||||||||
SHARE PRICE TOTAL RETURN(d) | 4.74 | % | (6.99 | )% | 18.21 | % | (34.49 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of period (000's omitted) | $ | 13,287 | $ | 20,120 | $ | 25,404 | $ | 74,774 | $ | 107,648 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.65 | % | 0.65 | % | 0.65 | % | 0.65 | % | 0.66 | % | |||||||||||||
Expenses, prior to Waivers | 1.58 | % | 1.17 | % | 1.07 | % | 0.72 | % | 0.78 | % | |||||||||||||
Net investment income, after Waivers | 1.53 | % | 1.49 | % | 2.12 | % | 2.82 | % | 2.71 | % | |||||||||||||
Portfolio turnover rate(e) | 120 | % | 114 | % | 84 | % | 93 | % | 111 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(f) | $ | 0.05 | $ | (0.02 | ) | $ | (0.00 | )(b) | $ | (0.01 | ) | $ | (0.05 | ) |
PowerShares Dynamic Biotechnology & Genome Portfolio (PBE)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 23.14 | $ | 19.67 | $ | 12.90 | $ | 17.77 | $ | 19.30 | |||||||||||||
Net investment income (loss)(a) | (0.04 | ) | (0.05 | ) | 0.06 | (g) | (0.06 | ) | (0.11 | ) | |||||||||||||
Net realized and unrealized gain (loss) on investments | (0.84 | ) | 3.52 | 6.79 | (4.81 | ) | (1.42 | ) | |||||||||||||||
Total from investment operations | (0.88 | ) | 3.47 | 6.85 | (4.87 | ) | (1.53 | ) | |||||||||||||||
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 | $ | 22.26 | $ | 23.14 | $ | 19.67 | $ | 12.90 | $ | 17.77 | |||||||||||||
Share price at end of period(c) | $ | 22.21 | $ | 23.18 | $ | 19.68 | $ | 12.87 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN:(d) | (3.80 | )% | 17.64 | % | 53.19 | % | (27.41 | )% | (7.93 | )% | |||||||||||||
SHARE PRICE TOTAL RETURN(d) | (4.18 | )% | 17.78 | % | 53.63 | % | (27.62 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 136,903 | $ | 217,553 | $ | 214,391 | $ | 139,297 | $ | 199,000 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | |||||||||||||
Expenses, prior to Waivers | 0.64 | % | 0.65 | % | 0.61 | % | 0.62 | % | 0.62 | % | |||||||||||||
Net investment income (loss), after Waivers | (0.21 | )% | (0.23 | )% | 0.36 | %(g) | (0.38 | )% | (0.57 | )% | |||||||||||||
Portfolio turnover rate(e) | 53 | % | 81 | % | 80 | % | 93 | % | 91 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(f) | $ | 0.01 | $ | 0.00 | (b) | $ | (0.01 | ) | $ | (0.01 | ) | $ | 0.01 |
(a) Based on average shares outstanding.
(b) Amount represents less than $0.005.
(c) The mean between the last bid and ask prices.
(d) 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.
(e) Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
(f) The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(g) 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.
See Notes to Financial Statements.
59
Financial Highlights (Continued)
PowerShares Dynamic Building & Construction Portfolio (PKB)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 14.11 | $ | 13.92 | $ | 10.92 | $ | 17.25 | $ | 18.70 | |||||||||||||
Net investment income(a) | 0.02 | 0.68 | (b) | 0.01 | 0.02 | 0.02 | |||||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.12 | 0.29 | (c) | 3.01 | (6.33 | ) | (1.45 | ) | |||||||||||||||
Total from investment operations | 0.14 | 0.97 | 3.02 | (6.31 | ) | (1.43 | ) | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.02 | ) | (0.66 | ) | (0.02 | ) | (0.02 | ) | (0.02 | ) | |||||||||||||
Return of capital | — | (0.12 | ) | — | — | — | |||||||||||||||||
Total distributions | (0.02 | ) | (0.78 | ) | (0.02 | ) | (0.02 | ) | (0.02 | ) | |||||||||||||
Net asset value at end of period | $ | 14.23 | $ | 14.11 | $ | 13.92 | $ | 10.92 | $ | 17.25 | |||||||||||||
Share price at end of period(d) | $ | 14.20 | $ | 14.09 | $ | 13.92 | $ | 10.94 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN:(e) | 0.99 | % | 7.49 | % | 27.65 | % | (36.61 | )% | (7.66 | )% | |||||||||||||
SHARE PRICE TOTAL RETURN(e) | 0.92 | % | 7.34 | % | 27.42 | % | (36.46 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 30,600 | $ | 40,204 | $ | 50,114 | $ | 49,142 | $ | 15,523 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | |||||||||||||
Expenses, prior to Waivers | 1.01 | % | 0.91 | % | 0.76 | % | 1.06 | % | 1.18 | % | |||||||||||||
Net investment income (loss), after Waivers | 0.12 | % | 5.25 | %(b) | 0.07 | % | 0.19 | % | 0.09 | % | |||||||||||||
Portfolio turnover rate(f) | 72 | % | 75 | % | 59 | % | 50 | % | 75 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(g) | $ | 0.02 | $ | 0.03 | $ | (0.00 | )(h) | $ | 0.05 | $ | (0.02 | ) |
PowerShares Dynamic Energy Exploration & Production Portfolio (PXE)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 27.67 | $ | 18.46 | $ | 13.17 | $ | 26.69 | $ | 21.29 | |||||||||||||
Net investment income(a) | 0.19 | 0.12 | 0.10 | 0.06 | 0.05 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (2.94 | ) | 9.21 | 5.27 | (13.50 | ) | 5.41 | ||||||||||||||||
Total from investment operations | (2.75 | ) | 9.33 | 5.37 | (13.44 | ) | 5.46 | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.34 | ) | (0.12 | ) | (0.07 | ) | (0.08 | ) | (0.06 | ) | |||||||||||||
Return of capital | — | — | (0.01 | ) | — | 0.00 | (i) | ||||||||||||||||
Total distributions | (0.34 | ) | (0.12 | ) | (0.08 | ) | (0.08 | ) | (0.06 | ) | |||||||||||||
Net asset value at end of period | $ | 24.58 | $ | 27.67 | $ | 18.46 | $ | 13.17 | $ | 26.69 | |||||||||||||
Share price at end of period(d) | $ | 24.57 | $ | 27.65 | $ | 18.46 | $ | 13.15 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN:(e) | (9.86 | )% | 50.80 | % | 40.87 | % | (50.42 | )% | 25.69 | % | |||||||||||||
SHARE PRICE TOTAL RETURN(e) | (9.83 | )% | 50.69 | % | 41.08 | % | (50.44 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 67,592 | $ | 118,975 | $ | 59,983 | $ | 51,344 | $ | 138,802 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.65 | % | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | |||||||||||||
Expenses, prior to Waivers | 0.73 | % | 0.76 | % | 0.76 | % | 0.69 | % | 0.65 | % | |||||||||||||
Net investment income, after Waivers | 0.81 | % | 0.57 | % | 0.62 | % | 0.30 | % | 0.23 | % | |||||||||||||
Portfolio turnover rate(f) | 94 | % | 57 | % | 68 | % | 68 | % | 39 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(g) | $ | 0.00 | (h) | $ | (0.00 | )(h) | $ | (0.00 | )(h) | $ | 0.00 | (h) | $ | 0.00 | (h) |
(a) Based on average shares outstanding.
(b) Net investment income per share and the ratio of net investment income to average net assets include a special cash dividend received of $1.65 per share owned of Weyerhaeuser Co. on July 20, 2010. Net investment income per share and the ratio of net investment income to average net assets excluding the special dividend are $0.03 and 0.26%, respectively.
(c) Due to the timing of creations and redemptions of capital shares, the net realized and unrealized gain (loss) per share is not in accord with the Fund's change in net realized and unrealized gain (loss) on investment securities and in-kind transactions for the period.
(d) The mean between the last bid and ask prices.
(e) 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.
(f) Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
(g) The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(h) Amount represents less than $0.005.
See Notes to Financial Statements.
60
Financial Highlights (Continued)
PowerShares Dynamic Food & Beverage Portfolio (PBJ)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 19.76 | $ | 16.00 | $ | 12.73 | $ | 16.73 | $ | 17.53 | |||||||||||||
Net investment income(a) | 0.22 | 0.24 | 0.20 | 0.25 | 0.18 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.03 | ) | 3.73 | 3.33 | (4.08 | ) | (0.42 | ) | |||||||||||||||
Total from investment operations | 0.19 | 3.97 | 3.53 | (3.83 | ) | (0.24 | ) | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.18 | ) | (0.21 | ) | (0.26 | ) | (0.17 | ) | (0.40 | ) | |||||||||||||
Return of capital | — | — | — | — | (0.16 | ) | |||||||||||||||||
Total distributions | (0.18 | ) | (0.21 | ) | (0.26 | ) | (0.17 | ) | (0.56 | ) | |||||||||||||
Net asset value at end of period | $ | 19.77 | $ | 19.76 | $ | 16.00 | $ | 12.73 | $ | 16.73 | |||||||||||||
Share price at end of period(b) | $ | 19.77 | $ | 19.81 | $ | 16.01 | $ | 12.74 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN:(c) | 1.02 | % | 24.99 | % | 28.08 | % | (22.99 | )% | (1.40 | )% | |||||||||||||
SHARE PRICE TOTAL RETURN(c) | 0.77 | % | 25.23 | % | 28.06 | % | (22.89 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 169,039 | $ | 91,881 | $ | 72,795 | $ | 86,592 | $ | 87,013 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | |||||||||||||
Expenses, prior to Waivers | 0.64 | % | 0.71 | % | 0.74 | % | 0.71 | % | 0.88 | % | |||||||||||||
Net investment income, after Waivers | 1.13 | % | 1.39 | % | 1.41 | % | 1.80 | % | 1.11 | % | |||||||||||||
Portfolio turnover rate(d) | 134 | % | 73 | % | 65 | % | 65 | % | 64 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(e) | $ | 0.04 | $ | 0.02 | $ | (0.06 | ) | $ | 0.04 | $ | 0.07 |
PowerShares Dynamic Insurance Portfolio (PIC)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 17.19 | $ | 15.49 | $ | 11.66 | $ | 16.20 | $ | 18.84 | |||||||||||||
Net investment income(a) | 0.23 | 0.38 | 0.16 | 0.15 | 0.27 | (f) | |||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.75 | ) | 1.66 | 3.86 | (4.54 | ) | (2.61 | ) | |||||||||||||||
Total from investment operations | (0.52 | ) | 2.04 | 4.02 | (4.39 | ) | (2.34 | ) | |||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.31 | ) | (0.34 | ) | (0.19 | ) | (0.15 | ) | (0.30 | ) | |||||||||||||
Net asset value at end of period | $ | 16.36 | $ | 17.19 | $ | 15.49 | $ | 11.66 | $ | 16.20 | |||||||||||||
Share price at end of period(b) | $ | 16.36 | $ | 17.19 | $ | 15.50 | $ | 11.61 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN:(c) | (2.85 | )% | 13.38 | % | 34.85 | % | (27.26 | )% | (12.56 | )% | |||||||||||||
SHARE PRICE TOTAL RETURN(c) | (2.85 | )% | 13.31 | % | 35.53 | % | (27.53 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 7,361 | $ | 9,452 | $ | 18,592 | $ | 26,809 | $ | 34,012 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | |||||||||||||
Expenses, prior to Waivers | 2.15 | % | 1.36 | % | 1.23 | % | 0.98 | % | 0.82 | % | |||||||||||||
Net investment income, after Waivers | 1.51 | % | 2.39 | % | 1.20 | % | 1.13 | % | 1.54 | %(f) | |||||||||||||
Portfolio turnover rate(d) | 87 | % | 66 | % | 72 | % | 52 | % | 82 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(e) | $ | 0.01 | $ | 0.02 | $ | 0.01 | $ | (0.01 | ) | $ | (0.03 | ) |
(a) Based on average shares outstanding.
(b) The mean between the last bid and ask prices.
(c) 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.
(d) Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
(e) The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(f) 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.
See Notes to Financial Statements.
61
Financial Highlights (Continued)
PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 19.34 | $ | 16.52 | $ | 10.65 | $ | 15.11 | $ | 18.32 | |||||||||||||
Net investment income(a) | 0.15 | 0.16 | 0.05 | 0.10 | 0.12 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 2.82 | 2.81 | 5.88 | (4.46 | ) | (2.75 | ) | ||||||||||||||||
Total from investment operations | 2.97 | 2.97 | 5.93 | (4.36 | ) | (2.63 | ) | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.13 | ) | (0.15 | ) | (0.06 | ) | (0.10 | ) | (0.19 | ) | |||||||||||||
Return of capital | — | — | — | — | (0.39 | ) | |||||||||||||||||
Total distributions | (0.13 | ) | (0.15 | ) | (0.06 | ) | (0.10 | ) | (0.58 | ) | |||||||||||||
Net asset value at end of period | $ | 22.18 | $ | 19.34 | $ | 16.52 | $ | 10.65 | $ | 15.11 | |||||||||||||
Share price at end of period(b) | $ | 22.20 | $ | 19.34 | $ | 16.54 | $ | 10.63 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN:(c) | 15.49 | % | 18.03 | % | 55.81 | % | (28.91 | )% | (14.58 | )% | |||||||||||||
SHARE PRICE TOTAL RETURN(c) | 15.59 | % | 17.89 | % | 56.29 | % | (29.09 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 57,679 | $ | 60,933 | $ | 62,794 | $ | 12,776 | $ | 15,115 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | |||||||||||||
Expenses, prior to Waivers | 0.80 | % | 0.78 | % | 1.06 | % | 1.65 | % | 0.95 | % | |||||||||||||
Net investment income, after Waivers | 0.80 | % | 0.92 | % | 0.41 | % | 0.96 | % | 0.70 | % | |||||||||||||
Portfolio turnover rate(d) | 90 | % | 58 | % | 68 | % | 50 | % | 58 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(e) | $ | 0.06 | $ | 0.05 | $ | (0.44 | ) | $ | (0.04 | ) | $ | (0.16 | ) |
PowerShares Dynamic Media Portfolio (PBS)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 15.61 | $ | 13.68 | $ | 8.25 | $ | 13.44 | $ | 16.48 | |||||||||||||
Net investment income(a) | 0.08 | 0.07 | 0.06 | 0.05 | 0.06 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.76 | ) | 1.93 | 5.42 | (5.18 | ) | (2.82 | ) | |||||||||||||||
Total from investment operations | (0.68 | ) | 2.00 | 5.48 | (5.13 | ) | (2.76 | ) | |||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.09 | ) | (0.07 | ) | (0.05 | ) | (0.04 | ) | (0.06 | ) | |||||||||||||
Return of capital | — | — | (0.00 | )(f) | (0.02 | ) | (0.22 | ) | |||||||||||||||
Total distributions | (0.09 | ) | (0.07 | ) | (0.05 | ) | (0.06 | ) | (0.28 | ) | |||||||||||||
Net asset value at end of period | $ | 14.84 | $ | 15.61 | $ | 13.68 | $ | 8.25 | $ | 13.44 | |||||||||||||
Share price at end of period(b) | $ | 14.84 | $ | 15.61 | $ | 13.70 | $ | 8.26 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN:(c) | (4.33 | )% | 14.68 | % | 66.55 | % | (38.30 | )% | (16.91 | )% | |||||||||||||
SHARE PRICE TOTAL RETURN(c) | (4.33 | )% | 14.51 | % | 66.59 | % | (38.31 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 137,975 | $ | 156,881 | $ | 125,875 | $ | 8,254 | $ | 30,923 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | |||||||||||||
Expenses, prior to Waivers | 0.65 | % | 0.69 | % | 0.77 | % | 1.22 | % | 0.85 | % | |||||||||||||
Net investment income, after Waivers | 0.60 | % | 0.57 | % | 0.51 | % | 0.52 | % | 0.36 | % | |||||||||||||
Portfolio turnover rate(d) | 89 | % | 53 | % | 50 | % | 69 | % | 62 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(e) | $ | 0.01 | $ | (0.01 | ) | $ | (0.12 | ) | $ | 0.05 | $ | (0.04 | ) |
(a) Based on average shares outstanding.
(b) The mean between the last bid and ask prices.
(c) 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.
(d) Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
(e) The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(f) Amount represents less than $0.005.
See Notes to Financial Statements.
62
Financial Highlights (Continued)
PowerShares Dynamic Networking Portfolio (PXQ)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 29.20 | $ | 21.08 | $ | 13.56 | $ | 16.04 | $ | 18.68 | |||||||||||||
Net investment income (loss)(a) | (0.06 | ) | (0.10 | ) | (0.09 | ) | (0.06 | ) | (0.09 | ) | |||||||||||||
Net realized and unrealized gain (loss) on investments | (1.43 | ) | 8.33 | 7.61 | (2.42 | ) | (2.55 | ) | |||||||||||||||
Total from investment operations | (1.49 | ) | 8.23 | 7.52 | (2.48 | ) | (2.64 | ) | |||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Return of capital | — | (0.11 | ) | — | — | — | |||||||||||||||||
Net asset value at end of period | $ | 27.71 | $ | 29.20 | $ | 21.08 | $ | 13.56 | $ | 16.04 | |||||||||||||
Share price at end of period(b) | $ | 27.68 | $ | 29.20 | $ | 21.11 | $ | 13.58 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN:(c) | (5.10 | )% | 39.08 | % | 55.46 | % | (15.46 | )% | (14.13 | )% | |||||||||||||
SHARE PRICE TOTAL RETURN(c) | (5.20 | )% | 38.89 | % | 55.45 | % | (15.28 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 81,739 | $ | 172,291 | $ | 47,437 | $ | 16,276 | $ | 12,831 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | |||||||||||||
Expenses, prior to Waivers | 0.67 | % | 0.70 | % | 0.95 | % | 1.92 | % | 1.25 | % | |||||||||||||
Net investment income (loss), after Waivers | (0.22 | )% | (0.38 | )% | (0.50 | )% | (0.49 | )% | (0.51 | )% | |||||||||||||
Portfolio turnover rate(d) | 84 | % | 61 | % | 29 | % | 23 | % | 17 | % | |||||||||||||
Undistributed net investment income included in price of units issued and redeemed(a)(e) | $ | 0.08 | $ | 0.02 | $ | 0.02 | $ | 0.11 | $ | 0.01 |
PowerShares Dynamic Oil & Gas Services Portfolio (PXJ)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 26.38 | $ | 18.03 | $ | 13.09 | $ | 29.23 | $ | 22.70 | |||||||||||||
Net investment income (loss)(a) | (0.01 | ) | 0.07 | 0.04 | 0.06 | (0.02 | ) | ||||||||||||||||
Net realized and unrealized gain (loss) on investments | (5.89 | ) | 8.36 | 4.98 | (16.16 | ) | 6.55 | ||||||||||||||||
Total from investment operations | (5.90 | ) | 8.43 | 5.02 | (16.10 | ) | 6.53 | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.00 | )(f) | (0.08 | ) | (0.06 | ) | (0.04 | ) | — | ||||||||||||||
Return of capital | — | — | (0.02 | ) | — | — | |||||||||||||||||
Total distributions | — | (0.08 | ) | (0.08 | ) | (0.04 | ) | — | |||||||||||||||
Net asset value at end of period | $ | 20.48 | $ | 26.38 | $ | 18.03 | $ | 13.09 | $ | 29.23 | |||||||||||||
Share price at end of period(b) | $ | 20.48 | $ | 26.38 | $ | 18.02 | $ | 13.11 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN:(c) | (22.36 | )% | 46.84 | % | 38.41 | % | (55.04 | )% | 28.77 | % | |||||||||||||
SHARE PRICE TOTAL RETURN(c) | (22.36 | )% | 46.93 | % | 38.13 | % | (54.93 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 147,485 | $ | 309,972 | $ | 170,358 | $ | 155,716 | $ | 379,939 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.63 | % | 0.63 | % | 0.63 | % | 0.62 | % | 0.62 | % | |||||||||||||
Expenses, prior to Waivers | 0.63 | % | 0.64 | % | 0.63 | % | 0.61 | % | 0.60 | % | |||||||||||||
Net investment income (loss), after Waivers | (0.03 | )% | 0.36 | % | 0.24 | % | 0.29 | % | (0.06 | )% | |||||||||||||
Portfolio turnover rate(d) | 70 | % | 39 | % | 56 | % | 48 | % | 67 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(e) | $ | (0.00 | )(f) | $ | 0.01 | $ | (0.00 | )(f) | $ | 0.00 | (f) | $ | 0.00 | (f) |
(a) Based on average shares outstanding.
(b) The mean between the last bid and ask prices.
(c) 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.
(d) Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
(e) The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(f) Amount represents less than $0.005.
See Notes to Financial Statements.
63
Financial Highlights (Continued)
PowerShares Dynamic Pharmaceuticals Portfolio (PJP)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 26.15 | $ | 19.55 | $ | 13.91 | $ | 17.20 | $ | 19.61 | |||||||||||||
Net investment income(a) | 0.22 | 0.17 | 0.14 | 0.15 | 0.10 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 5.83 | 6.56 | 5.76 | (3.32 | ) | (2.45 | ) | ||||||||||||||||
Total from investment operations | 6.05 | 6.73 | 5.90 | (3.17 | ) | (2.35 | ) | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.20 | ) | (0.13 | ) | (0.26 | ) | (0.12 | ) | (0.06 | ) | |||||||||||||
Net asset value at end of period | $ | 32.00 | $ | 26.15 | $ | 19.55 | $ | 13.91 | $ | 17.20 | |||||||||||||
Share price at end of period(b) | $ | 31.99 | $ | 26.17 | $ | 19.54 | $ | 13.92 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN:(c) | 23.29 | % | 34.55 | % | 42.69 | % | (18.52 | )% | (11.99 | )% | |||||||||||||
SHARE PRICE TOTAL RETURN(c) | 23.16 | % | 34.73 | % | 42.51 | % | (18.41 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 270,385 | $ | 87,606 | $ | 57,662 | $ | 104,349 | $ | 106,615 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | |||||||||||||
Expenses, prior to Waivers | 0.64 | % | 0.76 | % | 0.74 | % | 0.66 | % | 0.69 | % | |||||||||||||
Net investment income, after Waivers | 0.77 | % | 0.78 | % | 0.83 | % | 0.95 | % | 0.52 | % | |||||||||||||
Portfolio turnover rate(d) | 23 | % | 9 | % | 35 | % | 31 | % | 45 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(e) | $ | (0.04 | ) | $ | (0.01 | ) | $ | (0.04 | ) | $ | 0.00 | (f) | $ | (0.01 | ) |
PowerShares Dynamic Retail Portfolio (PMR)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 21.88 | $ | 18.67 | $ | 14.64 | $ | 15.99 | $ | 20.02 | |||||||||||||
Net investment income(a) | 0.16 | 0.18 | 0.06 | 0.05 | 0.04 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 4.17 | 3.21 | 4.08 | (1.36 | ) | (3.92 | ) | ||||||||||||||||
Total from investment operations | 4.33 | 3.39 | 4.14 | (1.31 | ) | (3.88 | ) | ||||||||||||||||
Distributions to shareholders from: | |||||||||||||||||||||||
Net investment income | (0.23 | ) | (0.18 | ) | (0.11 | ) | (0.04 | ) | (0.10 | ) | |||||||||||||
Return of capital | — | — | — | — | (0.05 | ) | |||||||||||||||||
Total distributions | (0.23 | ) | (0.18 | ) | (0.11 | ) | (0.04 | ) | (0.15 | ) | |||||||||||||
Net asset value at end of period | $ | 25.98 | $ | 21.88 | $ | 18.67 | $ | 14.64 | $ | 15.99 | |||||||||||||
Share price at end of period(b) | $ | 25.98 | $ | 21.90 | $ | 18.68 | $ | 14.64 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN:(c) | 20.06 | % | 18.35 | % | 28.49 | % | (8.11 | )% | (19.41 | )% | |||||||||||||
SHARE PRICE TOTAL RETURN(c) | 19.95 | % | 18.39 | % | 28.56 | % | (8.11 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 76,643 | $ | 13,130 | $ | 24,273 | $ | 77,607 | $ | 14,391 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | |||||||||||||
Expenses, prior to Waivers | 0.87 | % | 1.63 | % | 0.89 | % | 1.08 | % | 1.46 | % | |||||||||||||
Net investment income, after Waivers | 0.75 | % | 1.01 | % | 0.44 | % | 0.45 | % | 0.22 | % | |||||||||||||
Portfolio turnover rate(d) | 111 | % | 102 | % | 52 | % | 53 | % | 198 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(e) | $ | (0.29 | ) | $ | 0.13 | $ | 0.10 | $ | (0.17 | ) | $ | (0.07 | ) |
(a) Based on average shares outstanding.
(b) The mean between the last bid and ask prices.
(c) 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.
(d) Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
(e) The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
(f) Amount represents less than $0.005.
See Notes to Financial Statements.
64
Financial Highlights (Continued)
PowerShares Dynamic Semiconductors Portfolio (PSI)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 18.19 | $ | 14.29 | $ | 10.39 | $ | 16.32 | $ | 19.05 | |||||||||||||
Net investment income (loss)(a) | 0.06 | 0.01 | 0.05 | 0.04 | (0.01 | ) | |||||||||||||||||
Net realized and unrealized gain (loss) on investments | (2.47 | ) | 3.92 | 3.91 | (5.92 | ) | (2.72 | ) | |||||||||||||||
Total from investment operations | (2.41 | ) | 3.93 | 3.96 | (5.88 | ) | (2.73 | ) | |||||||||||||||
Distribution to shareholder from: | |||||||||||||||||||||||
Net investment income | (0.03 | ) | (0.01 | ) | (0.06 | ) | (0.05 | ) | — | ||||||||||||||
Return of capital | — | (0.02 | ) | (0.00 | )(b) | — | — | ||||||||||||||||
Total distributions | (0.03 | ) | (0.03 | ) | (0.06 | ) | (0.05 | ) | — | ||||||||||||||
Net asset value at end of period | $ | 15.75 | $ | 18.19 | $ | 14.29 | $ | 10.39 | $ | 16.32 | |||||||||||||
Share price at end of period(c) | $ | 15.71 | $ | 18.20 | $ | 14.29 | $ | 10.39 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN:(d) | (13.20 | )% | 27.57 | % | 38.16 | % | (36.01 | )% | (14.33 | )% | |||||||||||||
SHARE PRICE TOTAL RETURN(d) | (13.47 | )% | 27.64 | % | 38.16 | % | (36.01 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 21,261 | $ | 42,749 | $ | 28,573 | $ | 36,373 | $ | 75,056 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | |||||||||||||
Expenses, prior to Waivers | 1.02 | % | 0.97 | % | 0.90 | % | 0.82 | % | 0.67 | % | |||||||||||||
Net investment income (loss), after Waivers | 0.42 | % | 0.04 | % | 0.39 | % | 0.32 | % | (0.04 | )% | |||||||||||||
Portfolio turnover rate(e) | 57 | % | 64 | % | 68 | % | 65 | % | 56 | % | |||||||||||||
Undistributed net investment income (loss) included in price of units issued and redeemed(a)(f) | $ | (0.00 | )(b) | $ | 0.00 | (b) | $ | (0.01 | ) | $ | (0.01 | ) | $ | 0.02 |
PowerShares Dynamic Software Portfolio (PSJ)
Year Ended April 30, | |||||||||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | |||||||||||||||||||
PER SHARE OPERATING PERFORMANCE: | |||||||||||||||||||||||
Net asset value at beginning of period | $ | 27.47 | $ | 22.54 | $ | 15.37 | $ | 17.53 | $ | 20.39 | |||||||||||||
Net investment income (loss)(a) | (0.07 | ) | (0.07 | ) | (0.07 | ) | (0.06 | ) | (0.10 | ) | |||||||||||||
Net realized and unrealized gain (loss) on investments | (0.53 | ) | 5.00 | 7.24 | (2.10 | ) | (2.76 | ) | |||||||||||||||
Total from investment operations | (0.60 | ) | 4.93 | 7.17 | (2.16 | ) | (2.86 | ) | |||||||||||||||
Net asset value at end of period | $ | 26.87 | $ | 27.47 | $ | 22.54 | $ | 15.37 | $ | 17.53 | |||||||||||||
Share price at end of period(c) | $ | 26.87 | $ | 27.48 | $ | 22.55 | $ | 15.37 | |||||||||||||||
NET ASSET VALUE, TOTAL RETURN:(d) | (2.19 | )% | 21.87 | % | 46.65 | % | (12.32 | )% | (14.03 | )% | |||||||||||||
SHARE PRICE TOTAL RETURN(d) | (2.22 | )% | 21.86 | % | 46.71 | % | (12.37 | )% | |||||||||||||||
RATIOS/SUPPLEMENTAL DATA: | |||||||||||||||||||||||
Net assets at end of year (000's omitted) | $ | 49,710 | $ | 83,774 | $ | 67,626 | $ | 36,896 | $ | 35,055 | |||||||||||||
Ratio to average net assets of: | |||||||||||||||||||||||
Expenses, after Waivers | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | |||||||||||||
Expenses, prior to Waivers | 0.78 | % | 0.77 | % | 0.75 | % | 0.97 | % | 0.78 | % | |||||||||||||
Net investment income (loss), after Waivers | (0.29 | )% | (0.29 | )% | (0.38 | )% | (0.42 | )% | (0.49 | )% | |||||||||||||
Portfolio turnover rate(e) | 100 | % | 46 | % | 33 | % | 53 | % | 64 | % | |||||||||||||
Undistributed net investment income included in price of units issued and redeemed(a)(f) | $ | 0.01 | $ | 0.01 | $ | 0.00 | (b) | $ | 0.02 | $ | 0.05 |
(a) Based on average shares outstanding.
(b) Amount represents less than $0.005.
(c) The mean between the last bid and ask prices.
(d) 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.
(e) Portfolio turnover rate is not annualized and does not include securities received or delivered from processing creations or redemptions.
(f) The per share amount of equalization is presented to show the impact of equalization on distributable earnings per share.
See Notes to Financial Statements.
65
Notes to Financial Statements
PowerShares Exchange-Traded Fund Trust
April 30, 2012
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, 2012, the Trust offered fifty-eight 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 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 (each a "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 market prices of each Fund's Shares may differ to some degree from the Fund's net asset value ("NAV"). 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 generally in-kind for securities included in the relevant index. Except when aggregated in Creation Units by Authorized Participants the Shares are not individually redeemable securities of the Funds.
66
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
The investment objective of each Fund is to seek investment results that generally correspond (before fees and expenses) to the price and yield of its respective index listed below (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 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 accounting principles generally accepted in the United States of America ("GAAP") 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.
67
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
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. 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 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 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
Index Risk. Unlike many investment companies, the Funds do not utilize an investing strategy that seeks returns in excess of each Fund's respective Underlying Index. Therefore, a Fund would not necessarily buy
68
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
or sell a security unless that security is added or removed, respectively, from its respective Underlying Index, even if that security generally is underperforming.
Non-Diversified Fund Risk. Because each Fund is non-diversified and can invest a greater portion of its assets in securities of individual issuers than can a diversified fund, changes in the market value of a single investment could cause greater fluctuations in Share price than would occur in a diversified fund. This may increase a Fund's volatility and cause the performance of a relatively small number of issuers to have a greater impact on a Fund's performance.
Equity Risk. Equity risk is the risk that the value of the securities the Fund holds will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities the Fund holds participate or factors relating to specific companies in which the Fund invests. For example, an adverse event, such as an unfavorable earnings report, may depress the value of equity securities the Fund holds; the price of common stock may be particularly sensitive to general movements in the stock market; or a drop in the stock market may depress the price of most or all of the common stocks and other equity securities the Fund holds. In addition, common stock in the Fund's portfolio may decline in price if the issuer fails to make anticipated dividend payments because, among other reasons, the issuer of the security experiences a decline in its financial condition. Common stock is subordinated to preferred stocks, bonds and other debt instruments in a company's capital structure, in terms of priority to corporate income, and therefore will be subject to greater dividend risk than preferred stocks or debt instruments of such issuers.
Concentration Risk. A significant percentage of a Fund's Underlying Index is comprised of issuers in a single industry or sector of the economy. By focusing in an industry or sector, the Fund faces more risks than if it was diversified broadly over numerous industries and sectors of the economy. At times, such industry or group of industries may be out of favor and underperform other industries or the market as a whole.
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 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.
Small and Medium Capitalization Company Risk. Investing in securities of small and medium capitalization companies involves greater risk than customarily is associated with investing in larger, more established companies. These companies' securities may be more volatile and less liquid than those of more established companies. These securities may have returns that vary, sometimes significantly, from the overall securities market. Often small and medium capitalization companies and the industries in which they focus are still evolving and, as a result, they may be more sensitive to changing market conditions.
C. Federal Income Taxes
Each Fund intends to comply with the provisions of the Internal Revenue Code of 1986, as amended (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
69
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
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, timing differences, and passive foreign investment company adjustments, if any.
The Funds file U.S. federal tax returns and tax returns in 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 that are directly identifiable to a specific Fund are applied to that Fund. Expenses of the Trust that 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 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, sub-licensing fees related to its respective Underlying Index, any distribution fees or expenses, litigation expenses, fees payable to the Trust's Board members who are not "interested persons" (as defined in the 1940 Act) of the Trust or Invesco PowerShares Capital Management LLC ("the Adviser") (the "Independent Trustees"), expenses incurred in connection with the Board members' services, including travel expenses and legal fees of counsel for the Independent Trustees, and extraordinary expenses.
To the extent a Fund invests in other investment companies, the expenses shown in the accompanying financial statements, reflect the expenses of the Fund and do not include any expenses of the investment companies in which it invests. The effects of the investment companies expenses are included in the realized and unrealized gain/loss on the investments in the investment companies.
F. Dividends and Distributions to Shareholders
Each Fund declares and pays dividends from net investment income, if any, to its shareholders quarterly and records such dividends on ex-dividend date. Each Fund distributes net realized taxable capital gains, if any, generally annually in cash and records them 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.
70
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
G. Equalization
All of the 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. Securities Lending
The Dynamic Media Portfolio may lend portfolio securities having a market value up to one-third of the Fund's total assets. Such loans are secured by cash collateral equal to no less than 102% of the market value of the loaned securities determined daily by the securities lending provider. Cash collateral received in connection with these loans is invested in an affiliated money market fund and is shown as such on the Schedule of Investments. It is the Fund's policy to obtain additional collateral from or return excess collateral to the borrower by the end of the next business day, following the valuation date of the securities loaned. Therefore, the value of the collateral held may be temporarily less than the value of the securities on loan. Lending securities entails a risk of loss to a Fund if and to the extent that the market value of the securities loaned were to increase and the borrower did not increase the collateral accordingly, and the borrower fails to return the securities. Upon the failure of the borrower to return the securities, collateral may be liquidated and the securities may be purchased on the open market to replace the loaned securities. A Fund could experience delays and costs in gaining access to the collateral. A Fund bears the risk of any deficiency in the amount of the collateral available for return to the borrower due to any loss on the collateral invested. Dividends received on cash collateral investments for securities lending transactions, which are net of compensation to counterparties, is included in Affiliated securities lending income on the Statements of Operations. The aggregate value of securities out on loan is shown on the Statements of Assets and Liabilities, if any.
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 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 "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 (excluding interest expenses, brokerage commissions and other trading expenses, sub-licensing fees, offering costs, taxes and extraordinary expenses) of each Fund from exceeding 0.60% of the Fund's average daily net assets per year (the "Expense Cap"), at least until August 31, 2013. 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.
71
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
The Expense Agreement provides that the fees waived or expenses borne by the Adviser are subject to recapture by the Adviser for up to three years from the date the fee was waived 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 amounts available for potential future recapture by the Adviser under the Excess Expense Agreement and the expiration schedule at April 30, 2012 are as follows:
Total Potential Recapture Amounts | 04/30/13 | 04/30/14 | 04/30/15 | ||||||||||||||||
Dynamic Banking Portfolio | $ | 370,026 | $ | 117,891 | $ | 130,655 | $ | 121,480 | |||||||||||
Dynamic Biotechnology & Genome Portfolio | 55,269 | — | 34,675 | 20,594 | |||||||||||||||
Dynamic Building & Construction Portfolio | 291,611 | 70,891 | 113,361 | 107,359 | |||||||||||||||
Dynamic Energy Exploration & Production Portfolio | 229,346 | 75,804 | 92,366 | 61,176 | |||||||||||||||
Dynamic Food & Beverage Portfolio | 149,908 | 63,722 | 75,694 | 10,492 | |||||||||||||||
Dynamic Insurance Portfolio | 351,838 | 108,310 | 124,433 | 119,095 | |||||||||||||||
Dynamic Leisure and Entertainment Portfolio | 272,051 | 94,760 | 89,979 | 87,312 | |||||||||||||||
Dynamic Media Portfolio | 158,067 | 70,678 | 63,137 | 24,252 | |||||||||||||||
Dynamic Networking Portfolio | 210,615 | 90,723 | 71,940 | 47,952 | |||||||||||||||
Dynamic Oil & Gas Services Portfolio | 118 | — | — | 118 | |||||||||||||||
Dynamic Pharmaceuticals Portfolio | 139,628 | 38,007 | 91,156 | 10,465 | |||||||||||||||
Dynamic Retail Portfolio | 305,329 | 93,665 | 123,788 | 87,876 | |||||||||||||||
Dynamic Semiconductors Portfolio | 305,151 | 92,021 | 113,566 | 99,564 | |||||||||||||||
Dynamic Software Portfolio | 239,519 | 69,201 | 88,386 | 81,932 |
The Trust has entered into a Distribution Agreement with Invesco 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 Distributor is an affiliate of the Adviser.
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 Licensor. These trademarks have been licensed to the Adviser for use with the Funds. Each Fund is entitled to use it Underlying Index pursuant to Trust's sub-licensing agreement with the Adviser. The Funds are required to pay the sub-licensing fees that are shown on the Statements of Operations. 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 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
72
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
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 yield curves, loss severities, default rates, discount rates, volatilities 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.
As of April 30, 2012, the securities in each Fund were valued based on Level 1 inputs (see Schedule of Investments for security categories). 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..
With respect to each Fund, during the fiscal year ended April 30, 2012, there were no significant transfers between investment levels.
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, 2012 and 2011:
2012 | 2011 | ||||||||||||||
Ordinary Income | Ordinary Income | Return of Capital | |||||||||||||
Dynamic Banking Portfolio | $ | 309,670 | $ | 237,874 | $ | — | |||||||||
Dynamic Biotechnology & Genome Portfolio | — | — | — | ||||||||||||
Dynamic Building & Construction Portfolio | 32,808 | 2,169,779 | 404,914 | ||||||||||||
Dynamic Energy Exploration & Production Portfolio | 1,050,119 | 381,171 | — | ||||||||||||
Dynamic Food & Beverage Portfolio | 2,109,710 | 1,251,575 | — | ||||||||||||
Dynamic Insurance Portfolio | 153,638 | 389,896 | — |
73
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
2012 | 2011 | ||||||||||||||
Ordinary Income | Ordinary Income | Return of Capital | |||||||||||||
Dynamic Leisure and Entertainment Portfolio | $ | 312,008 | $ | 501,284 | $ | — | |||||||||
Dynamic Media Portfolio | 855,476 | 407,112 | — | ||||||||||||
Dynamic Networking Portfolio | — | — | 461,519 | ||||||||||||
Dynamic Oil & Gas Services Portfolio | 18,614 | 682,880 | — | ||||||||||||
Dynamic Pharmaceuticals Portfolio | 1,193,747 | 420,073 | — | ||||||||||||
Dynamic Retail Portfolio | 208,592 | 139,474 | — | ||||||||||||
Dynamic Semiconductors Portfolio | 53,536 | 15,131 | 55,929 | ||||||||||||
Dynamic Software Portfolio | — | — | — |
Tax Components of Net Assets at Fiscal Year-End:
Undistributed Ordinary Income | Temporary Book/Tax Differences | Net Unrealized Appreciation (Depreciation) | Capital Loss Carryforward | Late-Year Ordinary/Post- October Capital Deferrals* | Shares of Beneficial Interest | Total Net Assets | |||||||||||||||||||||||||
Dynamic Banking Portfolio | $ | 31,176 | $ | (6,935 | ) | $ | 1,387,010 | $ | (52,034,252 | ) | $ | (35,748 | ) | $ | 63,945,433 | $ | 13,286,684 | ||||||||||||||
Dynamic Biotechnology & Genome Portfolio** | — | (11,281 | ) | 17,837,407 | (147,361,612 | ) | (7,960,336 | ) | 274,398,650 | 136,902,828 | |||||||||||||||||||||
Dynamic Building & Construction Portfolio** | 3,831 | (5,946 | ) | 3,689,795 | (17,568,175 | ) | (755,532 | ) | 45,236,385 | 30,600,358 | |||||||||||||||||||||
Dynamic Energy Exploration & Production Portfolio | 45,696 | (7,831 | ) | (115,105 | ) | (36,675,608 | ) | (1,575,341 | ) | 105,920,215 | 67,592,026 | ||||||||||||||||||||
Dynamic Food & Beverage Portfolio | 452,992 | (7,822 | ) | 6,384,130 | (24,100,397 | ) | (14,348,548 | ) | 200,658,556 | 169,038,911 | |||||||||||||||||||||
Dynamic Insurance Portfolio | 15,477 | (5,573 | ) | 466,616 | (12,604,063 | ) | (363,500 | ) | 19,852,265 | 7,361,222 | |||||||||||||||||||||
Dynamic Leisure and Entertainment Portfolio | 158,320 | (5,751 | ) | 7,642,124 | (16,733,012 | ) | (1,996,687 | ) | 68,613,548 | 57,678,542 | |||||||||||||||||||||
Dynamic Media Portfolio | 102,971 | (6,759 | ) | 10,324,412 | (28,022,428 | ) | (8,613,492 | ) | 164,189,968 | 137,974,672 | |||||||||||||||||||||
Dynamic Networking Portfolio** | — | (6,349 | ) | 1,612,498 | (19,793,331 | ) | (2,531,338 | ) | 102,457,178 | 81,738,658 | |||||||||||||||||||||
Dynamic Oil & Gas Services Portfolio | — | (13,104 | ) | (17,297,319 | ) | (175,969,742 | ) | (6,392,653 | ) | 347,157,553 | 147,484,735 | ||||||||||||||||||||
Dynamic Pharmaceuticals Portfolio | 403,326 | (8,348 | ) | 27,456,583 | (24,771,479 | ) | (4,243,760 | ) | 271,549,024 | 270,385,346 | |||||||||||||||||||||
Dynamic Retail Portfolio | 75,210 | (5,565 | ) | 5,709,741 | (12,445,986 | ) | (616,082 | ) | 83,925,811 | 76,643,129 | |||||||||||||||||||||
Dynamic Semiconductors Portfolio | 55,872 | (6,460 | ) | 1,207,199 | (50,460,107 | ) | (976,622 | ) | 71,441,529 | 21,261,411 | |||||||||||||||||||||
Dynamic Software Portfolio** | — | (6,450 | ) | 4,873,274 | (18,955,550 | ) | (2,945,772 | ) | 66,744,196 | 49,709,698 |
* Includes capital losses incurred after October 31 ("Post-October Capitial Losses") and the combination of ordinary losses incurred after December 31 within the taxable year and specified losses incurred after October 31 within the taxable year ("Late-Year Ordinary Losses"), which are deemed to arise on the first business day of each Fund's next taxable year.
** The Dynamic Biotechnology & Genome Portfolio, Dynamic Building & Construction Portfolio, Dynamic Networking Portfolio and Dynamic Software Portfolio incurred and will elect to defer Late-Year Ordinary Losses of $130,610, $169, $66,349 and $51,452 and Post-October Capital Losses of $7,829,726, $755,363, $2,464,989 and $2,894,320, respectively.
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 Regulated Investment Company Modernization Act of 2010 (the "Act") eliminated the
74
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
eight-year carryover period for capital losses that arise in taxable years beginning after its enactment date of December 22, 2010. Consequently, these capital losses can be carried forward for an unlimited period. However, capital losses with an expiration period may not be used to offset capital gains until all net capital losses without an expiration date have been utilized. Additionally, post-enactment capital loss carryforwards will retain their character as either short-term or long-term capital losses instead of as short-term capital losses as under prior law. 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, 2012, which expire on April 30 of each year listed below:
Post-effective no expiration | |||||||||||||||||||||||||||||||||||||||||||
2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | Short-term | Long-term | Total | ||||||||||||||||||||||||||||||||||
Dynamic Banking Portfolio | $ | — | $ | — | $ | — | $ | 1,146,630 | $ | 16,399,927 | $ | 28,757,166 | $ | 3,909,850 | $ | 1,811,844 | $ | 8,835 | $ | 52,034,252 | |||||||||||||||||||||||
Dynamic Biotechnology & Genome Portfolio | — | 321,497 | 19,612,223 | 15,818,255 | 34,286,844 | 50,397,332 | 12,898,182 | 14,027,279 | — | 147,361,612 | |||||||||||||||||||||||||||||||||
Dynamic Building & Construction Portfolio | — | — | 2,263,182 | 742,893 | 2,843,349 | 3,001,058 | 6,653,613 | 2,064,080 | — | 17,568,175 | |||||||||||||||||||||||||||||||||
Dynamic Energy Exploration & Production Portfolio | — | — | 285,311 | 3,232,521 | 7,646,917 | 21,471,013 | 1,361,799 | 2,678,047 | — | 36,675,608 | |||||||||||||||||||||||||||||||||
Dynamic Food & Beverage Portfolio | — | — | 239,185 | 1,260,041 | 7,585,250 | 10,245,302 | — | 4,770,619 | — | 24,100,397 | |||||||||||||||||||||||||||||||||
Dynamic Insurance Portfolio | — | — | 774,301 | 2,181,744 | 4,422,035 | 3,738,972 | 878,569 | — | 608,442 | 12,604,063 | |||||||||||||||||||||||||||||||||
Dynamic Leisure and Entertainment Portfolio | — | 751,908 | 1,611,839 | 2,111,801 | 2,895,936 | 2,889,449 | 2,356,106 | 3,969,439 | 146,534 | 16,733,012 | |||||||||||||||||||||||||||||||||
Dynamic Media Portfolio | — | 545,973 | 3,187,134 | 2,505,039 | 4,930,761 | 5,161,647 | 6,294,489 | 4,579,111 | 818,274 | 28,022,428 | |||||||||||||||||||||||||||||||||
Dynamic Networking Portfolio | — | 383,187 | 1,939,441 | 1,064,275 | 1,975,581 | 512,618 | 730,670 | 13,187,559 | — | 19,793,331 | |||||||||||||||||||||||||||||||||
Dynamic Oil & Gas Services Portfolio | — | — | 15,026,862 | 7,909,602 | 24,680,663 | 85,028,926 | 35,877,910 | 7,445,779 | — | 175,969,742 | |||||||||||||||||||||||||||||||||
Dynamic Pharmaceuticals Portfolio | 164,751 | 66,659 | 644,797 | 1,727,610 | 2,128,715 | 15,494,879 | 1,618,918 | 1,562,252 | 1,362,898 | 24,771,479 | |||||||||||||||||||||||||||||||||
Dynamic Retail Portfolio | — | — | 937,070 | 1,908,967 | 2,427,604 | 1,816,180 | 2,176,015 | 3,026,338 | 153,812 | 12,445,986 | |||||||||||||||||||||||||||||||||
Dynamic Semiconductors Portfolio | — | 271,588 | 9,158,832 | 10,196,415 | 14,001,359 | 10,902,954 | 2,120,823 | 3,152,241 | 655,895 | 50,460,107 | |||||||||||||||||||||||||||||||||
Dynamic Software Portfolio | — | 108,427 | 3,017,278 | 1,542,190 | 7,095,351 | 2,938,722 | 3,242,208 | 1,011,374 | — | 18,955,550 |
Note 6. Investment Transactions
For the fiscal year ended April 30, 2012, 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 | $ | 16,132,407 | $ | 16,374,679 | |||||||
Dynamic Biotechnology & Genome Portfolio | 89,254,155 | 88,011,364 | |||||||||
Dynamic Building & Construction Portfolio | 22,478,277 | 21,024,638 | |||||||||
Dynamic Energy Exploration & Production Portfolio | 74,215,290 | 74,377,928 | |||||||||
Dynamic Food & Beverage Portfolio | 277,221,824 | 271,405,099 | |||||||||
Dynamic Insurance Portfolio | 6,929,696 | 6,819,067 |
75
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
Purchases | Sales | ||||||||||
Dynamic Leisure and Entertainment Portfolio | $ | 45,662,984 | $ | 45,777,103 | |||||||
Dynamic Media Portfolio | 121,407,441 | 120,263,947 | |||||||||
Dynamic Networking Portfolio | 94,401,766 | 96,330,179 | |||||||||
Dynamic Oil & Gas Services Portfolio | 137,866,815 | 137,633,530 | |||||||||
Dynamic Pharmaceuticals Portfolio | 46,310,239 | 43,191,378 | |||||||||
Dynamic Retail Portfolio | 44,360,372 | 42,710,138 | |||||||||
Dynamic Semiconductors Portfolio | 15,167,624 | 14,916,185 | |||||||||
Dynamic Software Portfolio | 57,006,819 | 58,144,709 |
For the fiscal year ended April 30, 2012, in-kind transactions associated with creations and redemptions were as follows:
Securities Received | Securities Delivered | ||||||||||
Dynamic Banking Portfolio | $ | 13,316,847 | $ | 19,716,757 | |||||||
Dynamic Biotechnology & Genome Portfolio | 69,721,859 | 134,086,513 | |||||||||
Dynamic Building & Construction Portfolio | 29,275,437 | 39,217,954 | |||||||||
Dynamic Energy Exploration & Production Portfolio | 59,428,645 | 97,546,612 | |||||||||
Dynamic Food & Beverage Portfolio | 459,170,920 | 375,577,731 | |||||||||
Dynamic Insurance Portfolio | 6,776,370 | 8,313,317 | |||||||||
Dynamic Leisure and Entertainment Portfolio | 73,280,964 | 78,332,085 | |||||||||
Dynamic Media Portfolio | 111,641,910 | 120,553,428 | |||||||||
Dynamic Networking Portfolio | 34,022,662 | 103,470,690 | |||||||||
Dynamic Oil & Gas Services Portfolio | 173,683,233 | 272,855,015 | |||||||||
Dynamic Pharmaceuticals Portfolio | 293,941,490 | 148,208,149 | |||||||||
Dynamic Retail Portfolio | 170,152,647 | 115,015,854 | |||||||||
Dynamic Semiconductors Portfolio | 39,175,293 | 54,820,595 | |||||||||
Dynamic Software Portfolio | 64,773,328 | 92,214,634 |
Gains and losses on in-kind transactions are generally not considered taxable gains and losses for Federal income tax purposes.
At April 30, 2012, 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 | $ | 12,001,498 | $ | 1,387,010 | $ | 1,447,183 | $ | (60,173 | ) | ||||||||||
Dynamic Biotechnology & Genome Portfolio | 119,290,178 | 17,837,407 | 21,342,345 | (3,504,938 | ) | ||||||||||||||
Dynamic Building & Construction Portfolio | 27,020,020 | 3,689,795 | 4,250,946 | (561,151 | ) |
76
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
Cost* | Net Unrealized Appreciation (Depreciation) | Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | ||||||||||||||||
Dynamic Energy Exploration & Production Portfolio | $ | 67,837,961 | $ | (115,105 | ) | $ | 3,458,341 | $ | (3,573,446 | ) | |||||||||
Dynamic Food & Beverage Portfolio | 162,647,107 | 6,384,130 | 9,047,860 | (2,663,730 | ) | ||||||||||||||
Dynamic Insurance Portfolio | 6,985,401 | 466,616 | 719,227 | (252,611 | ) | ||||||||||||||
Dynamic Leisure and Entertainment Portfolio | 50,127,222 | 7,642,124 | 8,168,602 | (526,478 | ) | ||||||||||||||
Dynamic Media Portfolio | 138,643,730 | 10,324,412 | 13,125,067 | (2,800,655 | ) | ||||||||||||||
Dynamic Networking Portfolio | 80,261,632 | 1,612,498 | 9,185,709 | (7,573,211 | ) | ||||||||||||||
Dynamic Oil & Gas Services Portfolio | 164,798,049 | (17,297,319 | ) | 6,698,573 | (23,995,892 | ) | |||||||||||||
Dynamic Pharmaceuticals Portfolio | 242,928,338 | 27,456,583 | 30,570,868 | (3,114,285 | ) | ||||||||||||||
Dynamic Retail Portfolio | 71,061,261 | 5,709,741 | 6,747,302 | (1,037,561 | ) | ||||||||||||||
Dynamic Semiconductors Portfolio | 20,177,806 | 1,207,199 | 2,162,441 | (955,242 | ) | ||||||||||||||
Dynamic Software Portfolio | 44,920,930 | 4,873,274 | 6,023,638 | (1,150,364 | ) |
* Cost of investments on a tax basis, includes the adjustments for financial reporting purposes, as of the most recently completed Federal income tax reporting period-end.
Note 7. Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of in-kind transactions and utilization of book equalization, on April 30, 2012, 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, 2012, the reclassifications were as follows:
Undistributed Net Investment Income (Loss) | Undistributed Net Realized Gain (Loss) | Shares of Beneficial Interest | |||||||||||||
Dynamic Banking Portfolio | $ | (57,154 | ) | $ | 337,661 | $ | (280,507 | ) | |||||||
Dynamic Biotechnology & Genome Portfolio | 93,597 | (26,670,613 | ) | 26,577,016 | |||||||||||
Dynamic Building & Construction Portfolio | (57,393 | ) | (3,880,708 | ) | 3,938,101 | ||||||||||
Dynamic Energy Exploration & Production Portfolio | 304,853 | (15,411,261 | ) | 15,106,408 | |||||||||||
Dynamic Food & Beverage Portfolio | (372,016 | ) | (9,722,719 | ) | 10,094,735 | ||||||||||
Dynamic Insurance Portfolio | (4,361 | ) | (769,263 | ) | 773,624 | ||||||||||
Dynamic Leisure and Entertainment Portfolio | (155,093 | ) | (5,147,994 | ) | 5,303,087 | ||||||||||
Dynamic Media Portfolio | (56,706 | ) | (11,836,909 | ) | 11,893,615 | ||||||||||
Dynamic Networking Portfolio | (152,089 | ) | (9,237,100 | ) | 9,389,189 | ||||||||||
Dynamic Oil & Gas Services Portfolio | 111,131 | (38,065,636 | ) | 37,954,505 | |||||||||||
Dynamic Pharmaceuticals Portfolio | 266,249 | (21,822,004 | ) | 21,555,755 | |||||||||||
Dynamic Retail Portfolio | 486,859 | (5,801,386 | ) | 5,314,527 | |||||||||||
Dynamic Semiconductors Portfolio | 833 | (3,874,015 | ) | 3,873,182 | |||||||||||
Dynamic Software Portfolio | 92,810 | (5,232,993 | ) | 5,140,183 |
77
Notes to Financial Statements (Continued)
PowerShares Exchange-Traded Fund Trust
April 30, 2012
Note 8. Trustees' Fees
The Funds compensate each Independent Trustee. The Trustees who are affiliated with the Adviser (the "Non-Independent Trustees") of the Trust do not receive any Trustees' fees.
The Trust has adopted a deferred compensation plan (the "Plan"). Under the Plan, an Independent Trustee who 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 select PowerShares Funds. The Deferral Fees payable to the Participating Trustee are valued as of the date such 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. Transaction in capital share for each Fund are disclosed in detail on the Statements of Changes in Net Assets.
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
78
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 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 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 and PowerShares Dynamic Software Portfolio (each an individual portfolio of PowerShares Exchange-Traded Fund Trust, hereafter referred to as the "Funds") at April 30, 2012, the results of each of their operations for the year then ended, the change in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, 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 Funds' 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, 2012 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Chicago, IL
June 25, 2012
79
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, 2012:
Federal Income Tax Information
Qualified Dividend Income* | Dividends-received Deduction* | ||||||||||
Dynamic Banking Portfolio | 100 | % | 100 | % | |||||||
Dynamic Biotechnology & Genome Portfolio | 0 | % | 0 | % | |||||||
Dynamic Building & Construction Portfolio | 100 | % | 100 | % | |||||||
Dynamic Energy Exploration & Production Portfolio | 100 | % | 100 | % | |||||||
Dynamic Food & Beverage Portfolio | 100 | % | 100 | % | |||||||
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.
80
Trustees and Officers
The Independent Trustees, Non-Independent 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, 2012.
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 During the Past 5 Years | ||||||||||||||||||
Ronn R. Bagge (54) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Trustee | Since 2007 | Founder and Principal, YQA Capital Management LLC (1998-Present); formerly Owner/CEO of Electronic Dynamic Balancing Co., Inc. (high-speed rotating equipment service provider) | 120 | None | ||||||||||||||||||
Todd J. Barre (54) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Trustee | Since 2010 | Assistant Professor of Business, Trinity Christian College (2010-Present); formerly 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 | 120 | None | ||||||||||||||||||
* This is the date the Independent 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, 2012, the Fund Complex consisted of the Trust's 58 portfolios and three other exchange-traded fund trusts with 62 portfolios advised by the Adviser.
81
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 During the Past 5 Years | ||||||||||||||||||
Marc M. Kole (51) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Trustee | Since 2007 | 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) | 120 | None | ||||||||||||||||||
Philip M. Nussbaum (50) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Trustee | Since 2007 | Chairman, Performance Trust Capital Partners (2004-Present) | 120 | None | ||||||||||||||||||
* This is the date the Independent 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, 2012, the Fund Complex consisted of the Trust's 58 portfolios and three other exchange-traded fund trusts with 62 portfolios advised by the Adviser.
82
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 During the Past 5 Years | ||||||||||||||||||
Donald H. Wilson (52) c/o Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Chairman of the Board and Trustee | Trustee since 2006; Chair since 2012 | 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) | 120 | None | ||||||||||||||||||
* This is the date the Independent 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, 2012, the Fund Complex consisted of the Trust's 58 portfolios and three other exchange-traded fund trusts with 62 portfolios advised by the Adviser.
83
Trustees and Officers (Continued)
The Non-Independent Trustees and the executive officers of the Trust, their term of office and length of time served, their principal business occupations during the past five years, the number of portfolios in the Fund Complex overseen by the Non-Independent Trustees and the other directorships, if any, held by the Trustees are shown below.
Name, Address and Age of Non-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 Non- Independent Trustees | Other Directorships Held by Non-Independent Trustees During the Past 5 Years | ||||||||||||||||||
H. Bruce Bond (48) Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | 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) | 120 | None | ||||||||||||||||||
* This is the date the Non-Independent 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, 2012, the Fund Complex consists of the Trust's 58 portfolios and three other exchange-traded fund trusts with 62 portfolios advised by the Adviser.
84
Trustees and Officers (Continued)
Name, Address and Age of Non-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 Non- Independent Trustees | Other Directorships Held by Non-Independent Trustees During the Past 5 Years | ||||||||||||||||||
Kevin M. Carome (55) 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 | 120 | None | ||||||||||||||||||
* This is the date the Non-Independent 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, 2012, the Fund Complex consisted of the Trust's 58 portfolios and three other exchange-traded fund trusts with 62 portfolios advised by the Adviser.
85
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 (37) Invesco Management Group, Inc. 11 Greenway Plaza Suite 1000 Houston, TX 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) | ||||||||||||
Benjamin Fulton (50) 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 (30) 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 Portfolio Manager, Invesco PowerShares Capital Management LLC (2007-2008); Research Analyst, Invesco PowerShares Capital Management LLC (2005-2007); Research Analyst and Trader, Ritchie Capital, a hedge fund operator (2003-2005) | ||||||||||||
David Warren (54) Invesco Canada Ltd. 5140 Yonge Street Suite 900 Toronto, Ontario M2N 6X7 | Vice President | Since 2009 | Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. and Chief Administrative Officer, North American Retail, Invesco Ltd (2007-Present); formerly, Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (2000-2006) | ||||||||||||
* This is the period for which the Officers began serving the Trust. Each Officer serves an indefinite term, until his or her successor is elected.
86
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 | ||||||||||||
Christopher Joe (42) Invesco Management Group, Inc. 11 Greenway Plaza Suite 1000 Houston, TX 77046 | Chief Compliance Officer | Since 2012 | U.S. Compliance Director, Invesco, Ltd.; Chief Compliance Officer, Invesco Investment Advisers, LLC (registered investment adviser); formerly, Assistant Fund Accounting Manager, Invesco, Ltd. | ||||||||||||
Sheri Morris (47) Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Treasurer | Since 2011 | Vice President, Treasurer and Principal Financial Officer, The Invesco Funds; Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) and Treasurer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Fund Trust. Formerly, Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc.; Assistant Vice President and Assistant Treasurer, The Invesco Funds and Assistant Vice President, Invesco Advisers, Inc., Invesco Aim Capital Management, Inc. and Invesco Aim Private Asset Management, Inc. | ||||||||||||
Anna Paglia (37) Invesco PowerShares Capital Management LLC 301 West Roosevelt Road Wheaton, IL 60187 | Secretary | Since 2011 | Head of Legal, Invesco PowerShares Capital Management LLC (2010-Present); formerly, Partner, K&L Gates LLP (formerly, Bell Boyd & Lloyd LLP) (2007-2010). Associate Counsel at Barclays Global Investors Ltd. (2004-2006) | ||||||||||||
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) 983-0903.
* This is the period for which the Officers began serving the Trust. Each Officer serves an indefinite term, until his or her successor is elected.
87
Board Considerations Regarding Approval of Continuation of
Investment Advisory Agreement
At a meeting held on April 19, 2012, the Board of Trustees of the PowerShares Exchange-Traded Fund Trust (the "Trust"), including the Independent Trustees, approved the continuation of the Investment Advisory Agreement between Invesco PowerShares Capital Management LLC (the "Adviser") and the Trust for the following 56 series (each, a "Fund" and collectively, the "Funds"):
PowerShares Aerospace & Defense Portfolio
PowerShares Buyback AchieversTM Portfolio
PowerShares CleantechTM Portfolio
PowerShares Dividend AchieversTM Portfolio
PowerShares DWA Technical LeadersTM Portfolio
PowerShares Dynamic Banking Portfolio
PowerShares Dynamic Basic Materials Sector Portfolio
PowerShares Dynamic Biotechnology & Genome Portfolio
PowerShares Dynamic Building & Construction Portfolio
PowerShares Dynamic Consumer Discretionary Sector Portfolio
PowerShares Dynamic Consumer Staples Sector Portfolio
PowerShares Dynamic Energy Exploration & Production Portfolio
PowerShares Dynamic Energy Sector Portfolio
PowerShares Dynamic Financial Sector Portfolio
PowerShares Dynamic Food & Beverage Portfolio
PowerShares Dynamic Healthcare Sector Portfolio
PowerShares Dynamic Industrials Sector Portfolio
PowerShares Dynamic Insurance Portfolio
PowerShares Dynamic Large Cap Growth Portfolio
PowerShares Dynamic Large Cap Value Portfolio
PowerShares Dynamic Leisure and Entertainment Portfolio
PowerShares Dynamic MagniQuant Portfolio
PowerShares Dynamic Market Portfolio
PowerShares Dynamic Media Portfolio
PowerShares Dynamic Networking Portfolio
PowerShares Dynamic Oil & Gas Services Portfolio
PowerShares Dynamic OTC Portfolio
PowerShares Dynamic Pharmaceuticals Portfolio
PowerShares Dynamic Retail Portfolio
PowerShares Dynamic Semiconductors Portfolio
PowerShares Dynamic Software Portfolio
PowerShares Dynamic Technology Sector Portfolio
PowerShares Dynamic Utilities Portfolio
PowerShares Financial Preferred Portfolio
PowerShares FTSE RAFI US 1000 Portfolio
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio
PowerShares Fundamental Pure Large Core Portfolio
PowerShares Fundamental Pure Large Growth Portfolio
PowerShares Fundamental Pure Large Value Portfolio
PowerShares Fundamental Pure Mid Core Portfolio
PowerShares Fundamental Pure Mid Growth Portfolio
PowerShares Fundamental Pure Mid Value Portfolio
PowerShares Fundamental Pure Small Core Portfolio
PowerShares Fundamental Pure Small Growth Portfolio
PowerShares Fundamental Pure Small Value Portfolio
PowerShares Global Listed Private Equity Portfolio
PowerShares Golden Dragon Halter USX China Portfolio
PowerShares High Yield Equity Dividend AchieversTM Portfolio
PowerShares International Dividend AchieversTM Portfolio
PowerShares Lux Nanotech Portfolio
PowerShares Morningstar StockInvestor Core Portfolio
PowerShares S&P 500 High Quality Portfolio
PowerShares Water Resources Portfolio
PowerShares WilderHill Clean Energy Portfolio
PowerShares WilderHill Progressive Energy Portfolio
PowerShares Zacks Micro Cap Portfolio
88
Board Considerations Regarding Approval of 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 a Fund grows, (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 for the one-year, three-year, five-year and since-inception periods ended December 31, 2011, as applicable, including reports on the correlation and tracking error between each Fund's performance and the performance of its underlying index, as well as the Adviser's analysis of the tracking error between each Fund and its underlying index. The Trustees noted that for each applicable period 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 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 daily net assets for each Fund other than PowerShares Dividend AchieversTM Portfolio, PowerShares High Yield Equity Dividend AchieversTM Portfolio, PowerShares International Dividend AchieversTM Portfolio, PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Core Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio, PowerShares Fundamental Pure Small Growth Portfolio and PowerShares Fundamental Pure Small Value Portfolio;
89
Board Considerations Regarding Approval of Continuation of
Investment Advisory Agreement (Continued)
• 0.40% of the Fund's average daily net assets for each of PowerShares Dividend AchieversTM Portfolio, PowerShares High Yield Equity Dividend AchieversTM Portfolio and PowerShares International Dividend AchieversTM Portfolio; and
• 0.29% of the Fund's average daily net assets for each of PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Core Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio, PowerShares Fundamental Pure Small Growth Portfolio and PowerShares Fundamental Pure Small Value Portfolio (for each of PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Mid Core Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio, PowerShares Fundamental Pure Small Growth Portfolio and PowerShares Fundamental Pure Small Value Portfolio, the Trustees noted that the advisory fee for each of these Funds was reduced to 0.29% effective June 16, 2011).
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, 2013, as set forth below:
• 0.60%, excluding interest expenses, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses 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, acquired fund fees and expenses and extraordinary expenses, for each of PowerShares Dividend AchieversTM Portfolio, PowerShares High Yield Equity Dividend AchieversTM Portfolio and PowerShares International Dividend AchieversTM Portfolio;
• 0.50%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for each of PowerShares Morningstar StockInvestor Core Portfolio and PowerShares S&P 500 High Quality Portfolio;
• 0.39%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for each of PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Core Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio, PowerShares Fundamental Pure Small Growth Portfolio and PowerShares Fundamental Pure Small Value Portfolio (for each of PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Mid Core Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio,
90
Board Considerations Regarding Approval of Continuation of
Investment Advisory Agreement (Continued)
PowerShares Fundamental Pure Small Growth Portfolio and PowerShares Fundamental Pure Small Value Portfolio, the Trustees noted that the Expense Cap for each of these Funds was reduced to 0.39% effective June 16, 2011); and
• 0.60%, excluding interest expenses, licensing fees, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses 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 with comparable investment strategies as the Funds, except for PowerShares FTSE RAFI US 1000 Portfolio, and further noted the Adviser's representation that the advisory fee charged to the PowerShares FTSE RAFI US 1000 Portfolio was not higher than the fee the Adviser charged to its other clients with comparable investment strategies. The Trustees noted that each Fund's advisory fee (for the year ended December 31, 2011) 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 Global Listed Private Equity Portfolio and PowerShares Golden Dragon Halter USX China Portfolio, which was equal to or 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 Dynamic Large Cap Growth Portfolio, PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Growth Portfolio and PowerShares Fundamental Pure Small Value Portfolio, which was lower than the median advisory fee of its open-end index peer funds; and there was no comparable data for PowerShares Aerospace & Defense Portfolio, PowerShares CleantechTM Portfolio, PowerShares Dynamic Banking Portfolio, PowerShares Dynamic Basic Materials Sector Portfolio, PowerShares Dynamic Biotechnology & Genome Portfolio, PowerShares Dynamic Building & Construction Portfolio, PowerShares Dynamic Consumer Discretionary Sector Portfolio, PowerShares Dynamic Consumer Staples Sector Portfolio, PowerShares Dynamic Financial Sector Portfolio, PowerShares Dynamic Food & Beverage Portfolio, PowerShares Dynamic Healthcare Sector Portfolio, PowerShares Dynamic Industrials Sector Portfolio, PowerShares Dynamic Insurance Portfolio, PowerShares Dynamic Leisure and Entertainment Portfolio, PowerShares Dynamic Media Portfolio, PowerShares Dynamic Pharmaceuticals Portfolio, PowerShares Dynamic Retail Portfolio, PowerShares Financial Preferred Portfolio, PowerShares Global Listed Private Equity Portfolio or PowerShares Golden Dragon Halter USX China 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, the distinguishing factors of the Funds, and the higher administrative, operational and management oversight
91
Board Considerations Regarding Approval of Continuation of
Investment Advisory Agreement (Continued)
costs for the Adviser. With respect to the Funds' expense ratios, the Trustees noted that the net expense ratio for each Fund (for the year ended December 31, 2011) 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, PowerShares Golden Dragon Halter USX China Portfolio and PowerShares S&P 500 High Quality Portfolio, which was equal to or 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 Dividend AchieversTM Portfolio, PowerShares DWA Technical LeadersTM Portfolio, PowerShares Dynamic Energy Exploration & Production Portfolio, PowerShares Dynamic Energy Sector Portfolio, PowerShares Dynamic Large Cap Growth Portfolio, PowerShares Dynamic Large Cap Value Portfolio, PowerShares Dynamic Networking Portfolio, PowerShares Oil & Gas Services Portfolio, PowerShares Dynamic OTC Portfolio, PowerShares Dynamic Semiconductors Portfolio, PowerShares Dynamic Software Portfolio, PowerShares Dynamic Technology Sector Portfolio, PowerShares Dynamic Utilities Sector Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Fundamental Pure Large Core Portfolio, PowerShares Fundamental Pure Large Growth Portfolio, PowerShares Fundamental Pure Large Value Portfolio, PowerShares Fundamental Pure Mid Core Portfolio, PowerShares Fundamental Pure Mid Growth Portfolio, PowerShares Fundamental Pure Mid Value Portfolio, PowerShares Fundamental Pure Small Core Portfolio, PowerShares Fundamental Pure Small Growth Portfolio, PowerShares Fundamental Pure Small Value Portfolio, PowerShares High Yield Equity Dividend AchieversTM Portfolio, PowerShares Lux Nanotech Portfolio, PowerShares S&P 500 High Quality Portfolio, PowerShares Water Resources Portfolio, PowerShares WilderHill Clean Energy Portfolio and PowerShares WilderHill Progressive Energy Portfolio, which was lower than the median expense ratio of its open-end index peer funds; and there was no comparable data for PowerShares Aerospace & Defense Portfolio, PowerShares CleantechTM Portfolio, PowerShares Dynamic Banking Portfolio, PowerShares Dynamic Basic Materials Sector Portfolio, PowerShares Dynamic Biotechnology & Genome Portfolio, PowerShares Dynamic Building & Construction Portfolio, PowerShares Dynamic Consumer Discretionary Sector Portfolio, PowerShares Dynamic Consumer Staples Sector Portfolio, PowerShares Dynamic Financial Sector Portfolio, PowerShares Dynamic Food & Beverage Portfolio, PowerShares Dynamic Healthcare Sector Portfolio, PowerShares Dynamic Industrials Sector Portfolio, PowerShares Dynamic Insurance Portfolio, PowerShares Dynamic Leisure and Entertainment Portfolio, PowerShares Dynamic Media Portfolio, PowerShares Dynamic Pharmaceuticals Portfolio, PowerShares Dynamic Retail Portfolio, PowerShares Financial Preferred Portfolio, PowerShares Global Listed Private Equity Portfolio or PowerShares Golden Dragon Halter USX China 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, and noted those Funds for which license fees are included in the Funds' Expense Caps.
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.
92
Board Considerations Regarding Approval of Continuation of
Investment Advisory Agreement (Continued)
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 Portfolio 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 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.
93
This page intentionally left blank
This page intentionally left blank
This page intentionally left blank
PROXY VOTING POLICIES AND PROCEDURES
A description of the Trust's 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)983-0903. 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)983-0903; or (ii) accessing the Trust's Form N-PX on the Commission's website at www.sec.gov.
QUARTERLY PORTFOLIOS
The Trust files its complete schedule of portfolio holdings for the Funds 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
© 2012 Invesco PowerShares Capital Management LLC P-PS-AR-7
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). No substantive amendments to this Code were made during the reporting period. There were no waivers for the fiscal year ended April 30, 2012.
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 LLP (“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 |
| $ | 814,000 |
| N/A |
| $ | 761,600 |
| N/A |
|
Audit-Related Fees |
| $ | 0 |
| 0 | % | $ | 0 |
| 0 | % |
Tax Fees(2) |
| $ | 394,488 |
| 0 | % | $ | 393,015 |
| 0 | % |
All Other Fees |
| $ | 0 |
| 0 | % | $ | 0 |
| 0 | % |
Total Fees |
| $ | 1,208,488 |
| 0 | % | $ | 1,154,615 |
| 0 | % |
PwC billed the Registrant aggregate fees of $ 394,488 for the fiscal year ended April 30, 2012 and $393,015 for the fiscal year ended April 30, 2011, 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) Tax fees for the fiscal year ended April 30, 2012 includes fees billed for reviewing tax returns, 2011 excise tax returns and excise tax distribution calculations in addition to preparing the final tax returns for the six liquidated
portfolios of the Trust. Tax fees for the fiscal year ended April 30, 2011 included fees billed for reviewing tax returns, 2010 excise tax returns and excise tax distribution calculations.
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, 2012 and April 30, 2011.
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.
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 second 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.
(a)(3) Not applicable.
(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: | July 2, 2012 |
| ||
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: | July 2, 2012 |
| |
|
|
| |
By: | /s/ Sheri L. Morris |
| |
|
| ||
Name: | Sheri L. Morris |
| |
Title: | Treasurer |
| |
|
|
| |
Date: | July 2, 2012 |
| |