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)
3500 Lacey Road
Downers Grove, IL 60515
(Address of principal executive offices) (Zip code)
Daniel E. Draper
President
3500 Lacey Road
Downers Grove, IL 60515
(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, 2016
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
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:
April 30, 2016 |
2016 Annual Report to Shareholders
DWAQ | PowerShares DWA NASDAQ Momentum Portfolio | |
PWC | PowerShares Dynamic Market Portfolio | |
PRF | PowerShares FTSE RAFI US 1000 Portfolio | |
PRFZ | PowerShares FTSE RAFI US 1500 Small-Mid Portfolio |
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US Equity
Although the health of individual economic sectors varied dramatically, the US economy overall continued its slow but steady growth during the fiscal year ended April 30, 2016. This modest growth led to recurring debate over whether the US economy could withstand global recessionary forces. Many energy, industrial and materials companies experienced cyclical downturns resembling a mild recession even as many consumer-related companies benefited from continued low interest rates, increased availability of credit and a better employment picture. Another significant downturn in oil prices reduced capital investment but also reduced consumers’ energy and gasoline costs.
In the first half of the reporting period, US equity market performance was greatly affected by expectations of when, and whether, the US Federal Reserve (the “Fed”) might raise interest rates — and the impact the Fed’s action might have. Markets moved lower in the summer of 2015 as a significant downturn in China’s financial markets and weak global economic growth led to increased concern about the sustainability of US economic growth. In the fall, markets rallied and the Fed saw enough economic stabilization to finally raise interest rates.
US stocks began 2016 on a negative note. Together with a sharp decline in oil prices, this suggested a global recession might be imminent and caused investors to become decidedly risk averse; this helped short-term and income-oriented investments, but hurt longer-term and growth-oriented investments. As companies reported earnings and fundamentals that were better than had been feared, stocks rallied sharply in late February and March. Additionally, oil prices strengthened modestly on the back of a weaker US dollar and as Saudi Arabia and Russia considered a freeze on their oil output. Overall, US equity markets were mixed, with the S&P 500 Index, considered representative of the performance of the US stock market, finishing the reporting period modestly higher.
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DWAQ | Manager’s Analysis | |
PowerShares DWA NASDAQ Momentum Portfolio (DWAQ) |
As an index fund, the PowerShares DWA NASDAQ Momentum Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dorsey Wright® NASDAQ Technical Leaders Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies that comprise the Index.
Dorsey Wright & Associates, LLC (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its guidelines and mandated procedures, the Index Provider includes companies in the Index pursuant to a proprietary methodology that is designed to identify companies that demonstrate powerful relative strength characteristics based upon their market performance. The Index Provider ranks a starting universe of approximately 1,000 equity securities traded on The NASDAQ Stock Market, LLC that have the largest market capitalizations using a proprietary methodology based upon each security’s market performance to determine each security’s “momentum” score. A “momentum” style of investing emphasizes investing in securities that have had better recent performance compared to other securities. Each security’s score is based on intermediate and long-term price movements relative to a representative market benchmark index. The Index Provider identifies 100 securities with the highest momentum score to include in the Index. Securities with higher momentum scores receive greater weight within the Index. The Index is rebalanced and reconstituted quarterly, but no changes are made to the Index between these quarterly rebalance dates. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned (6.96)%. On a net asset value (“NAV”) basis, the Fund returned (6.90)%. During the same time period, the Index returned (6.29)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.
During this same time period, the NASDAQ Composite Index (PO), (the “Benchmark Index”) returned (3.36)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 2,586 securities. The Benchmark Index performance is price only, and does not reflect dividends paid by the holdings in the Benchmark Index. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a broad-based equity market benchmark. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the U.S. equity market.
The performance of the Fund differed from the Benchmark Index because the Index employs a proprietary stock selection and weighting methodology whereas the Benchmark Index selects and weights stocks based on market capitalization.
Relative to the Benchmark Index, the Fund was most overweight in the health care sector and most underweight in the information technology sector during the fiscal year ended April 30, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to stock selection within the information technology, consumer discretionary and industrial sectors as well as the Fund being underweight in the materials and consumer staples sectors.
For the fiscal year ended April 30, 2016, the consumer discretionary sector contributed most significantly to the Fund’s return, followed by the telecommunication services sector. The health care sector detracted most significantly from the Fund’s return, followed by the information technology and industrials sectors, respectively.
Positions that contributed most significantly to the Fund’s return included MarketAxess Holdings, Inc., a financials company (portfolio average weight of 2.08%), and Henry Schein, Inc., a health care company (portfolio average weight of 2.80%). Positions that detracted most significantly from the Fund’s return included Jazz Pharmaceuticals PLC, a health care company (no longer held at fiscal year-end), and PDF Solutions, Inc., an information technology company (no longer held at fiscal year-end).
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PowerShares DWA NASDAQ Momentum Portfolio (DWAQ) (continued)
Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Consumer Discretionary | 30.7 | |||
Information Technology | 27.7 | |||
Financials | 14.2 | |||
Health Care | 13.6 | |||
Consumer Staples | 5.1 | |||
Industrials | 5.0 | |||
Telecommunication Services | 1.9 | |||
Energy | 1.1 | |||
Materials | 0.8 | |||
Money Market Fund Plus Other Assets Less Liabilities | (0.1) | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
Priceline Group, Inc. (The) | 3.0 | |||
Henry Schein, Inc. | 2.9 | |||
Arch Capital Group Ltd. | 2.7 | |||
MarketAxess Holdings, Inc. | 2.6 | |||
Papa John’s International, Inc. | 2.5 | |||
Atrion Corp. | 2.4 | |||
Tractor Supply Co. | 2.3 | |||
O’Reilly Automotive, Inc. | 2.1 | |||
Ultimate Software Group, Inc. (The) | 2.1 | |||
Intuit, Inc. | 2.1 | |||
Total | 24.7 |
* | Excluding money market fund holdings. |
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PowerShares DWA NASDAQ Momentum Portfolio (DWAQ) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2016
1 Year | 3 Years Average | 3 Years Cumulative | 5 Years Average | 5 Years Cumulative | 10 Years Average | 10 Years Cumulative | Fund Inception††† | |||||||||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||||||||||
Blended-Dorsey Wright® NASDAQ Technical Leaders Index† | (6.29 | )% | 8.92 | % | 29.21 | % | 6.59 | % | 37.59 | % | 3.61 | % | 42.58 | % | 8.05 | % | 173.60 | % | ||||||||||||||||||||
NASDAQ Composite Index (PO)†† | (3.36 | ) | 12.78 | 43.46 | 10.69 | 66.18 | 7.47 | 105.61 | 9.47 | 224.30 | ||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||
NAV Return | (6.90 | ) | 8.20 | 26.68 | 5.84 | 32.84 | 2.96 | 33.88 | 7.35 | 151.49 | ||||||||||||||||||||||||||||
Market Price Return | (6.96 | ) | 8.25 | 26.84 | 5.84 | 32.85 | 2.96 | 33.81 | 7.34 | 151.15 |
Fund Inception: May 1, 2003
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.96% and the net annual operating expense ratio was indicated as 0.60%. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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.
Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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 Blended-Dorsey Wright® NASDAQ Technical Leaders Index performance is comprised of the performance of the Dynamic OTC IntellidexSM Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2016. |
†† | Price only, and does not reflect dividends paid by the holdings in the Benchmark Index. |
††† | Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund. |
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PWC | Manager’s Analysis | |
PowerShares Dynamic Market Portfolio (PWC) |
As an index fund, the PowerShares Dynamic Market Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. 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.
NYSE Group, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its guidelines and mandated procedures, the Index Provider includes stocks that, based upon its rankings, it believes possess the greatest investment potential for the Index. The Index uses market-like sector weightings and market-capitalization groupings in seeking to produce a sector and size dispersion similar to the overall broad market. The Index Provider ranks the 2,000 largest U.S. stocks (by market capitalization) traded on the NYSE, NYSE MKT and the NASDAQ for investment potential using a proprietary NYSE Group Intellidex model. The Index Provider ranks companies quarterly, based on a variety of criteria, including price momentum, earnings momentum, quality, management action, and value factors, and then sorts them based on their cumulative score on the above criteria. The Index Provider divides the universe of stocks into ten economic sectors and divides each sector into two market-capitalization groupings: large and mid/small. The Index includes 100 companies from the top of each sector and size category. The Index Provider selects a defined number of the top ranked large and mid/small stocks within each sector. The number of stocks selected within a sector is predetermined and based on the percentage of the overall market represented by such sector. The Index Provider allocates 70% of the Index weighting to 30 large-capitalization stocks across the sectors and 30% of the Index weighting to 70 mid/small-capitalization stocks across the sectors. The Index Provider equally weights stock within their size groups. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned (1.43)%. On a net asset value (“NAV”) basis, the Fund returned (1.50)%. During the same time period, the Index returned (0.79)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.
During this same time period, the S&P 500® Index (the “Benchmark Index”) returned 1.21%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 510 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a similar broad U.S. equity market benchmark. The Benchmark Index was selected for its recognition
in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the broad U.S. stock market.
The performance of the Fund differed from the Benchmark Index in part because the Index employs a modified equal weighting and stock selection methodology whereas the Benchmark Index selects and weights stocks based on market capitalization.
Relative to the Benchmark Index, the Fund was most overweight in the consumer discretionary sector and most underweight in the financials sector during the fiscal year ended April 30, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to stock selection within the industrials sector.
For the fiscal year ended April 30, 2016, the consumer discretionary sector contributed most significantly to the Fund’s return, followed by the consumer staples and energy sectors, respectively. The industrials sector detracted most significantly from the Fund’s return, followed by the health care and materials sectors, respectively.
Positions that contributed most significantly to the Fund’s return included SM Energy Co., an energy company (portfolio average weight of 0.19%), and Seadrill Ltd., an energy company (portfolio average weight of 0.16%). Positions that detracted most significantly from the Fund’s return included American Airlines Group, Inc., an industrials company (portfolio average weight of 1.25%), and AmerisourceBergen Corp., a health care company (no longer held at fiscal year-end).
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PowerShares Dynamic Market Portfolio (PWC) (continued)
Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Information Technology | 20.5 | |||
Health Care | 13.8 | |||
Consumer Discretionary | 13.7 | |||
Financials | 13.2 | |||
Consumer Staples | 10.5 | |||
Industrials | 10.3 | |||
Energy | 8.8 | |||
Utilities | 3.4 | |||
Materials | 3.2 | |||
Telecommunication Services | 2.6 | |||
Money Market Fund Plus Other Assets Less Liabilities | 0.0 | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
Constellation Brands, Inc., Class A | 3.9 | |||
Reynolds American, Inc. | 3.5 | |||
HP, Inc. | 3.2 | |||
Facebook, Inc., Class A | 3.0 | |||
Activision Blizzard, Inc. | 3.0 | |||
Edwards Lifesciences Corp. | 2.8 | |||
Motorola Solutions, Inc. | 2.7 | |||
Fiserv, Inc. | 2.7 | |||
L-3 Communications Holdings, Inc. | 2.6 | |||
McDonald’s Corp. | 2.5 | |||
Total | 29.9 |
* | Excluding money market fund holdings. |
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PowerShares Dynamic Market Portfolio (PWC) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2016
1 Year | 3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years Cumulative | 10 Years Average Annualized | 10 Years Cumulative | Fund Inception† | |||||||||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||||||||||
Dynamic Market IntellidexSM Index | (0.79 | )% | 10.24 | % | 33.99 | % | 10.23 | % | 62.74 | % | 5.90 | % | 77.44 | % | 9.57 | % | 227.84 | % | ||||||||||||||||||||
S&P 500® Index | 1.21 | 11.26 | 37.71 | 11.02 | 68.63 | 6.91 | 95.01 | 8.66 | 194.24 | |||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||
NAV Return | (1.50 | ) | 9.45 | 31.12 | 9.45 | 57.08 | 5.26 | 67.00 | 8.87 | 201.79 | ||||||||||||||||||||||||||||
Market Price Return | (1.43 | ) | 9.47 | 31.17 | 9.46 | 57.13 | 5.26 | 66.94 | 8.87 | 201.71 |
Fund Inception: May 1, 2003
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.59%. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund
at NAV and Market 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 and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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.
† | Fund, Index and Benchmark Index returns are based on the inception date of the Fund. |
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PRF | Manager’s Analysis | |
PowerShares FTSE RAFI US 1000 Portfolio (PRF) |
As an index fund, the PowerShares FTSE RAFI US 1000 Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. 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 securities that comprise the Index.
FTSE International Limited and Research Affiliates, LLC (collectively, the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its guidelines and mandated procedures, the Index Provider selects its components from the universe of stocks of companies that are incorporated in the United States. The Index is designed to track the performance of the largest U.S. equity stocks based on four fundamental measures of firm size: book value, cash flow, sales and dividends. The Index Provider ranks the universe of companies by equally weighting each fundamental measure. It then takes 1,000 stocks with the highest fundamental weight and assigns a weight equal to its investable RAFI fundamental value, rather than their market capitalization. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned (0.24)%. On a net asset value (“NAV”) basis, the Fund returned (0.23)%. During the same time period, the Index returned 0.10%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.
During this same time period, the Russell 1000® Index (the “Benchmark Index”) returned 0.34%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 1,020 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a broad U.S. equity large cap benchmark. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the U.S. large cap market.
The performance of the Fund differed from the Benchmark Index in part because the Index employs a fundamental weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.
Relative to the Benchmark Index, the Fund was most overweight in the financials sector and most underweight in the information technology sector during the fiscal year ended April 30, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the
Fund’s allocation to the consumer discretionary sector as well as to fees and operating expenses incurred by the Fund.
For the fiscal year ended April 30, 2016, the consumer staples sector contributed most significantly to the Fund’s return, followed by the utilities and telecommunication services sectors, respectively. The energy sector detracted most significantly from the Fund’s return, followed by the financials and information technology sectors, respectively.
Positions that contributed most significantly to the Fund’s return included AT&T, Inc., a telecommunication services company (portfolio average weight of 2.09%), and General Electric Co., an industrials company (portfolio average weight of 1.93%). Positions that detracted most significantly from the Fund’s return included Apple, Inc., an information technology company (portfolio average weight of 1.31%), and Citigroup, Inc., a financials company (portfolio average weight of 1.39%).
Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Financials | 21.4 | |||
Energy | 14.1 | |||
Information Technology | 12.0 | |||
Consumer Discretionary | 10.9 | |||
Industrials | 10.5 | |||
Health Care | 10.0 | |||
Consumer Staples | 8.6 | |||
Utilities | 4.7 | |||
Materials | 4.4 | |||
Telecommunication Services | 3.4 | |||
Money Market Fund Plus Other Assets Less Liabilities | 0.0 | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
Exxon Mobil Corp. | 2.9 | |||
Chevron Corp. | 2.2 | |||
JPMorgan Chase & Co. | 1.7 | |||
AT&T, Inc. | 1.7 | |||
Berkshire Hathaway, Inc., Class B | 1.6 | |||
General Electric Co. | 1.5 | |||
Apple, Inc. | 1.5 | |||
Wells Fargo & Co. | 1.4 | |||
Citigroup, Inc. | 1.3 | |||
Bank of America Corp. | 1.3 | |||
Total | 17.1 |
* | Excluding money market fund holdings. |
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PowerShares FTSE RAFI US 1000 Portfolio (PRF) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2016
1 Year | 3 Years | 3 Years | 5 Years | 5 Years | 10 Years | 10 Years | Fund Inception† | |||||||||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||||||||||
FTSE RAFI US 1000 Index | 0.10 | % | 10.58 | % | 35.22 | % | 10.80 | % | 66.99 | % | 7.95 | % | 114.99 | % | 8.29 | % | 128.23 | % | ||||||||||||||||||||
Russell 1000® Index | 0.34 | 11.06 | 36.98 | 10.81 | 67.09 | 6.99 | 96.50 | 7.24 | 106.31 | |||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||
NAV Return | (0.23 | ) | 10.18 | 33.75 | 10.39 | 63.91 | 7.50 | 106.19 | 7.83 | 118.35 | ||||||||||||||||||||||||||||
Market Price Return | (0.24 | ) | 10.17 | 33.72 | 10.39 | 63.90 | 7.50 | 106.13 | 7.85 | 118.85 |
Fund Inception: December 19, 2005
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.41% and the net annual operating expense ratio was indicated as 0.39%. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund
at NAV and Market 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 and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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.
† | Fund, Index and Benchmark Index returns are based on the inception date of the Fund. |
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PRFZ | Manager’s Analysis | |
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) |
As an index fund, the PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. 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.
FTSE International Limited and Research Affiliates, LLC (collectively, the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its guidelines and mandated procedures, the Index Provider selects the components from the universe of stocks of companies that are incorporated in the United States. The Index is designed to track the performance of small and medium-sized U.S. equity stocks based on four fundamental measures of firm size: book value, cash flow, sales and dividends. The Index Provider calculates an overall weight for each company by equally weighting each fundamental measure and excluding dividends from the average for companies that have never paid dividends. The Index Provider then excludes the equities with a fundamental weight ranking of 1 through 1,000 and instead includes the equities with a fundamental weight ranking of 1,001 through 2,500. Finally, the Index Provider assigns a weight to each of these 1,500 stocks by their investable RAFI fundamental value rather than their market capitalization. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned (4.52)%. On a net asset value (“NAV”) basis, the Fund returned (4.49)%. During the same time period, the Index returned (4.30)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period, which were partially offset by revenue generated through the Fund’s securities lending program.
During this same time period, the Russell 2000® Index (the “Benchmark Index”) returned (5.94)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 1,950 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a U.S. equity small cap stock benchmark. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the U.S. small cap stock market.
The performance of the Fund differed from the Benchmark Index in part because the Index employs a fundamental weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.
Relative to the Benchmark Index, the Fund was most overweight in the industrials sector and most underweight in the health care
sector during the fiscal year ended April 30, 2016. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to the Fund’s underweight position in the health care sector.
For the fiscal year ended April 30, 2016, the financials sector contributed most significantly to the Fund’s return, followed by the consumer staples and utilities sectors, respectively. The energy sector detracted most significantly from the Fund’s return, followed by the consumer discretionary and information technology sectors, respectively.
Positions that contributed most significantly to the Fund’s return included Helix Energy Solutions Group, Inc., an energy company (portfolio average weight of 0.04%), and Pep Boys—Manny, Moe & Jack, a consumer discretionary company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included SunEdison, Inc., a semiconductors & semiconductor equipment company (no longer held at fiscal year-end), and C&J Energy Services Ltd., an energy company (portfolio average weight of 0.06%).
Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Financials | 24.1 | |||
Industrials | 16.4 | |||
Consumer Discretionary | 15.6 | |||
Information Technology | 15.6 | |||
Energy | 9.0 | |||
Health Care | 7.0 | |||
Materials | 6.3 | |||
Consumer Staples | 3.1 | |||
Utilities | 1.5 | |||
Telecommunication Services | 1.4 | |||
Money Market Fund Plus Other Assets Less Liabilities | 0.0 | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
Helix Energy Solutions Group, Inc. | 0.5 | |||
Bill Barrett Corp. | 0.4 | |||
Laredo Petroleum, Inc. | 0.3 | |||
Archrock, Inc. | 0.3 | |||
Tronox Ltd., Class A | 0.2 | |||
Hornbeck Offshore Services, Inc. | 0.2 | |||
Bristow Group, Inc. | 0.2 | |||
EP Energy Corp., Class A | 0.2 | |||
WEX, Inc. | 0.2 | |||
Clearwater Paper Corp. | 0.2 | |||
Total | 2.7 |
* | Excluding money market fund holdings. |
| 12 |
|
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) (continued)
Growth of a $10,000 Investment Since Inception†
Fund Performance History as of April 30, 2016
1 Year | 3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years Cumulative | Fund Inception† | |||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||
FTSE RAFI US 1500 Small-Mid Index | (4.30 | )% | 9.41 | % | 30.97 | % | 8.26 | % | 48.69 | % | 8.49 | % | 118.83 | % | ||||||||||||||||
Russell 2000® Index | (5.94 | ) | 7.53 | 24.33 | 6.98 | 40.11 | 6.04 | 75.71 | ||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||
NAV Return | (4.49 | ) | 9.16 | 30.09 | 8.03 | 47.15 | 8.23 | 113.76 | ||||||||||||||||||||||
Market Price Return | (4.52 | ) | 9.20 | 30.22 | 8.03 | 47.16 | 8.23 | 113.74 |
Fund Inception: September 20, 2006
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.42% and the net annual operating expense ratio was indicated as 0.39%. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund
at NAV and Market 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 and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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.
† | Fund, Index and Benchmark Index returns are based on the inception date of the Fund. |
| 13 |
|
PowerShares DWA NASDAQ Momentum Portfolio (DWAQ)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.1% | ||||||||
Consumer Discretionary—30.7% | ||||||||
2,055 | Charter Communications, Inc., Class A(b) | $ | 436,153 | |||||
2,268 | Children’s Place, Inc. (The) | 176,700 | ||||||
5,582 | China Lodging Group Ltd. ADR (China) | 201,287 | ||||||
1,413 | Churchill Downs, Inc. | 189,596 | ||||||
3,096 | Comcast Corp., Class A | 188,113 | ||||||
5,473 | Core-Mark Holding Co., Inc. | 446,925 | ||||||
3,257 | Cracker Barrel Old Country Store, Inc. | 476,857 | ||||||
3,606 | Dorman Products, Inc.(b) | 193,967 | ||||||
2,038 | Expedia, Inc., Class A | 235,939 | ||||||
7,770 | G-III Apparel Group Ltd.(b) | 351,593 | ||||||
5,884 | Goodyear Tire & Rubber Co. (The) | 170,459 | ||||||
2,354 | Helen of Troy Ltd.(b) | 234,294 | ||||||
5,957 | Liberty Ventures, Series A(b) | 238,280 | ||||||
7,026 | LKQ Corp.(b) | 225,183 | ||||||
8,721 | Monro Muffler Brake, Inc. | 603,668 | ||||||
2,765 | O’Reilly Automotive, Inc.(b) | 726,310 | ||||||
2,191 | Panera Bread Co., Class A(b) | 469,948 | ||||||
15,648 | Papa John’s International, Inc. | 885,520 | ||||||
2,612 | Pool Corp. | 228,315 | ||||||
770 | Priceline Group, Inc. (The)(b) | 1,034,618 | ||||||
31,344 | Ruth’s Hospitality Group, Inc. | 497,743 | ||||||
11,776 | Smith & Wesson Holding Corp.(b) | 257,070 | ||||||
10,024 | Sonic Corp. | 344,525 | ||||||
7,227 | Texas Roadhouse, Inc. | 294,283 | ||||||
8,527 | Tractor Supply Co. | 807,166 | ||||||
1,017 | Ulta Salon, Cosmetics & Fragrance, Inc.(b) | 211,821 | ||||||
6,182 | Universal Electronics, Inc.(b) | 410,547 | ||||||
9,958 | Vera Bradley, Inc.(b) | 174,663 | ||||||
|
| |||||||
10,711,543 | ||||||||
|
| |||||||
Consumer Staples—5.1% | ||||||||
4,279 | Cal-Maine Foods, Inc. | 217,202 | ||||||
1,234 | Costco Wholesale Corp. | 182,793 | ||||||
2,533 | J & J Snack Foods Corp. | 256,162 | ||||||
1,513 | Monster Beverage Corp.(b) | 218,205 | ||||||
5,099 | National Beverage Corp.(b) | 238,327 | ||||||
25,096 | Pilgrim’s Pride Corp.(b) | 675,333 | ||||||
|
| |||||||
1,788,022 | ||||||||
|
| |||||||
Energy—1.1% | ||||||||
4,203 | Diamondback Energy, Inc.(b) | 363,896 | ||||||
|
| |||||||
Financials—14.2% | ||||||||
6,445 | Ameris Bancorp | 202,373 | ||||||
13,568 | Arch Capital Group Ltd. (Bermuda)(b) | 956,408 | ||||||
6,957 | Eagle Bancorp, Inc.(b) | 352,720 | ||||||
890 | Equinix, Inc. REIT | 294,011 | ||||||
8,821 | First Merchants Corp. | 226,259 | ||||||
19,578 | Grupo Financiero Galicia SA, Class B ADR (Argentina) | 557,386 | ||||||
5,625 | Home BancShares, Inc. | 241,819 | ||||||
3,098 | Lamar Advertising Co., Class A REIT | 192,200 | ||||||
7,495 | MarketAxess Holdings, Inc. | 920,086 | ||||||
13,156 | Meridian Bancorp, Inc. | 192,341 | ||||||
5,925 | Pinnacle Financial Partners, Inc. | 291,332 | ||||||
7,862 | PrivateBancorp, Inc. | 327,138 | ||||||
1,550 | Signature Bank(b) | 213,636 | ||||||
|
| |||||||
4,967,709 | ||||||||
|
|
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Health Care—13.6% | ||||||||
7,084 | ABIOMED, Inc.(b) | $ | 688,140 | |||||
3,701 | Align Technology, Inc.(b) | 267,175 | ||||||
2,804 | AmSurg Corp.(b) | 227,068 | ||||||
2,099 | Atrion Corp. | 833,933 | ||||||
5,964 | Henry Schein, Inc.(b) | 1,006,127 | ||||||
3,679 | ICON PLC(b) | 248,627 | ||||||
5,312 | IDEXX Laboratories, Inc.(b) | 448,067 | ||||||
15,511 | Lexicon Pharmaceuticals, Inc.(b) | 214,207 | ||||||
2,086 | Ligand Pharmaceuticals, Inc.(b) | 252,135 | ||||||
3,652 | Neogen Corp.(b) | 172,520 | ||||||
3,093 | PAREXEL International Corp.(b) | 188,982 | ||||||
3,303 | VCA, Inc.(b) | 207,990 | ||||||
|
| |||||||
4,754,971 | ||||||||
|
| |||||||
Industrials—5.0% | ||||||||
8,634 | AAON, Inc. | 228,974 | ||||||
1,783 | AMERCO | 627,616 | ||||||
2,073 | Elbit Systems Ltd. (Israel) | 207,300 | ||||||
7,181 | Gibraltar Industries, Inc.(b) | 189,938 | ||||||
5,165 | Healthcare Services Group, Inc. | 195,495 | ||||||
4,326 | Old Dominion Freight Line, Inc.(b) | 285,732 | ||||||
|
| |||||||
1,735,055 | ||||||||
|
| |||||||
Information Technology—27.7% | ||||||||
5,795 | Activision Blizzard, Inc. | 199,754 | ||||||
2,041 | Adobe Systems, Inc.(b) | 192,303 | ||||||
3,871 | Broadcom Ltd. (Singapore) | 564,198 | ||||||
12,817 | Cadence Design Systems, Inc.(b) | 297,226 | ||||||
2,537 | Check Point Software Technologies Ltd. (Israel)(b) | 210,241 | ||||||
2,390 | Cimpress NV (Netherlands)(b) | 210,009 | ||||||
5,619 | Cirrus Logic, Inc.(b) | 202,846 | ||||||
1,439 | CoStar Group, Inc.(b) | 283,929 | ||||||
4,987 | Cray, Inc.(b) | 188,858 | ||||||
9,850 | Ebix, Inc. | 473,982 | ||||||
4,597 | Electronics for Imaging, Inc.(b) | 183,144 | ||||||
3,729 | ExlService Holdings, Inc.(b) | 180,446 | ||||||
4,810 | Facebook, Inc., Class A(b) | 565,560 | ||||||
2,887 | FEI Co. | 257,001 | ||||||
2,570 | First Solar, Inc.(b) | 143,509 | ||||||
2,576 | Fiserv, Inc.(b) | 251,727 | ||||||
18,125 | Himax Technologies, Inc. ADR (Taiwan) | 188,319 | ||||||
7,158 | Intuit, Inc. | 722,171 | ||||||
2,493 | Jack Henry & Associates, Inc. | 202,008 | ||||||
4,308 | Littelfuse, Inc. | 501,796 | ||||||
6,056 | Monolithic Power Systems, Inc. | 378,016 | ||||||
5,692 | NXP Semiconductors NV (Netherlands)(b) | 485,414 | ||||||
8,084 | Orbotech Ltd. (Israel)(b) | 194,663 | ||||||
8,077 | PC Connection, Inc. | 191,990 | ||||||
6,693 | Proofpoint, Inc.(b) | 389,934 | ||||||
3,922 | SS&C Technologies Holdings, Inc. | 239,830 | ||||||
4,448 | Stamps.com, Inc.(b) | 366,337 | ||||||
2,790 | Synaptics, Inc.(b) | 199,624 | ||||||
7,958 | Take-Two Interactive Software, Inc.(b) | 272,004 | ||||||
3,692 | Ultimate Software Group, Inc. (The)(b) | 725,810 | ||||||
3,612 | Universal Display Corp.(b) | 210,616 | ||||||
|
| |||||||
9,673,265 | ||||||||
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 14 |
|
PowerShares DWA NASDAQ Momentum Portfolio (DWAQ) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Materials—0.8% | ||||||||
17,259 | Pan American Silver Corp. (Canada) | $ | 270,449 | |||||
|
| |||||||
Telecommunication Services—1.9% | ||||||||
6,515 | Cogent Communications Group, Inc. | 252,130 | ||||||
14,369 | Shenandoah Telecommunications Co. | 412,247 | ||||||
|
| |||||||
664,377 | ||||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $33,611,430) | 34,929,287 | |||||||
|
| |||||||
Money Market Fund—0.1% | ||||||||
43,830 | Invesco Premier Portfolio—Institutional Class, 0.39%(c) (Cost $43,830) | 43,830 | ||||||
|
| |||||||
Total Investments (Cost $33,655,260)—100.2% | 34,973,117 | |||||||
Other assets less liabilities—(0.2)% | (59,837 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 34,913,280 | ||||||
|
|
Investment Abbreviations:
ADR—American Depositary Receipt
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 15 |
|
Schedule of Investments(a)
PowerShares Dynamic Market Portfolio (PWC)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.0% | ||||||||
Consumer Discretionary—13.7% | ||||||||
20,297 | Abercrombie & Fitch Co., Class A | $ | 542,539 | |||||
71,275 | Apollo Education Group, Inc., Class A(b) | 555,945 | ||||||
8,414 | Children’s Place, Inc. (The) | 655,535 | ||||||
8,021 | Cooper-Standard Holding, Inc.(b) | 618,499 | ||||||
39,961 | L Brands, Inc. | 3,128,547 | ||||||
28,805 | McDonald’s Corp. | 3,643,544 | ||||||
43,447 | Omnicom Group, Inc. | 3,604,798 | ||||||
12,824 | O’Reilly Automotive, Inc.(b) | 3,368,608 | ||||||
15,365 | ServiceMaster Global Holdings, Inc.(b) | 588,787 | ||||||
11,202 | Six Flags Entertainment Corp. | 672,680 | ||||||
23,365 | Smith & Wesson Holding Corp.(b) | 510,058 | ||||||
8,268 | Sturm Ruger & Co., Inc. | 529,400 | ||||||
4,560 | Vail Resorts, Inc. | 591,158 | ||||||
8,070 | Visteon Corp. | 642,937 | ||||||
|
| |||||||
19,653,035 | ||||||||
|
| |||||||
Consumer Staples—10.5% | ||||||||
6,714 | Casey’s General Stores, Inc. | 751,968 | ||||||
35,368 | Constellation Brands, Inc., Class A | 5,519,530 | ||||||
37,206 | Dean Foods Co. | 641,059 | ||||||
13,014 | Herbalife Ltd.(b) | 754,161 | ||||||
18,793 | National Beverage Corp.(b) | 878,385 | ||||||
10,237 | Post Holdings, Inc., Class A(b) | 735,426 | ||||||
99,920 | Reynolds American, Inc. | 4,956,032 | ||||||
11,013 | Tyson Foods, Inc., Class A | 724,876 | ||||||
|
| |||||||
14,961,437 | ||||||||
|
| |||||||
Energy—8.8% | ||||||||
69,906 | Alon USA Partners LP | 699,060 | ||||||
378,013 | Seadrill Ltd. (United Kingdom)(b) | 1,806,902 | ||||||
81,279 | SM Energy Co. | 2,532,654 | ||||||
41,494 | Tesoro Corp. | 3,306,657 | ||||||
82,595 | Transocean Ltd. | 915,152 | ||||||
55,884 | Valero Energy Corp. | 3,289,891 | ||||||
|
| |||||||
12,550,316 | ||||||||
|
| |||||||
Financials—13.2% | ||||||||
30,592 | Ambac Financial Group, Inc.(b) | 496,508 | ||||||
10,110 | Aspen Insurance Holdings Ltd. (Bermuda) | 468,599 | ||||||
84,504 | Charles Schwab Corp. (The) | 2,400,759 | ||||||
18,308 | Chubb Ltd. | 2,157,781 | ||||||
33,844 | Cincinnati Financial Corp. | 2,234,043 | ||||||
16,692 | Employers Holdings, Inc. | 495,752 | ||||||
16,537 | Enterprise Financial Services Corp. | 452,618 | ||||||
11,513 | Everest Re Group Ltd. | 2,128,754 | ||||||
22,091 | Green Dot Corp., Class A(b) | 491,083 | ||||||
23,249 | Heritage Insurance Holdings, Inc. | 308,979 | ||||||
25,374 | Investment Technology Group, Inc. | 495,301 | ||||||
37,391 | JPMorgan Chase & Co. | 2,363,111 | ||||||
33,696 | Nasdaq, Inc. | 2,079,380 | ||||||
2,122 | National Western Life Group, Inc., Class A | 459,837 | ||||||
25,656 | Old Republic International Corp. | 474,379 | ||||||
79,215 | TrustCo Bank Corp. NY | 507,768 | ||||||
11,266 | United Fire Group, Inc. | 504,942 | ||||||
23,215 | Universal Insurance Holdings, Inc. | 408,816 | ||||||
|
| |||||||
18,928,410 | ||||||||
|
|
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Health Care—13.8% | ||||||||
4,009 | athenahealth, Inc.(b) | $ | 534,400 | |||||
19,712 | Bruker Corp. | 557,850 | ||||||
23,372 | Cigna Corp. | 3,237,957 | ||||||
37,544 | Edwards Lifesciences Corp.(b) | 3,987,548 | ||||||
18,115 | Enanta Pharmaceuticals, Inc.(b) | 528,958 | ||||||
37,471 | Gilead Sciences, Inc. | 3,305,317 | ||||||
94,106 | Hologic, Inc.(b) | 3,161,020 | ||||||
7,002 | IDEXX Laboratories, Inc.(b) | 590,619 | ||||||
12,878 | INC Research Holdings, Inc., Class A(b) | 619,818 | ||||||
5,289 | Ligand Pharmaceuticals, Inc.(b) | 639,281 | ||||||
8,810 | Magellan Health, Inc.(b) | 620,753 | ||||||
13,277 | Masimo Corp.(b) | 575,558 | ||||||
8,211 | Molina Healthcare, Inc.(b) | 425,001 | ||||||
19,803 | Triple-S Management Corp., Class B(b) | 515,670 | ||||||
5,606 | WellCare Health Plans, Inc.(b) | 504,484 | ||||||
|
| |||||||
19,804,234 | ||||||||
|
| |||||||
Industrials—10.3% | ||||||||
82,905 | American Airlines Group, Inc. | 2,875,974 | ||||||
68,931 | Builders FirstSource, Inc.(b) | 764,445 | ||||||
70,797 | Delta Air Lines, Inc. | 2,950,111 | ||||||
12,771 | Hawaiian Holdings, Inc.(b) | 537,276 | ||||||
28,493 | L-3 Communications Holdings, Inc. | 3,747,684 | ||||||
46,944 | MRC Global, Inc.(b) | 656,277 | ||||||
6,723 | National Presto Industries, Inc. | 586,178 | ||||||
55,340 | RPX Corp.(b) | 613,167 | ||||||
30,835 | SkyWest, Inc. | 724,623 | ||||||
11,818 | Spirit AeroSystems Holdings, Inc., Class A(b) | 557,219 | ||||||
46,227 | Wabash National Corp.(b) | 658,735 | ||||||
|
| |||||||
14,671,689 | ||||||||
|
| |||||||
Information Technology—20.5% | ||||||||
122,979 | Activision Blizzard, Inc. | 4,239,086 | ||||||
25,577 | Advanced Energy Industries, Inc.(b) | 827,416 | ||||||
23,158 | Aspen Technology, Inc.(b) | 880,699 | ||||||
139,159 | EarthLink Holdings Corp. | 808,514 | ||||||
36,340 | Facebook, Inc., Class A(b) | 4,272,857 | ||||||
40,026 | Fiserv, Inc.(b) | 3,911,341 | ||||||
368,588 | HP, Inc. | 4,522,575 | ||||||
21,419 | Ingram Micro, Inc., Class A | 748,594 | ||||||
52,388 | Motorola Solutions, Inc. | 3,939,054 | ||||||
38,999 | Nuance Communications, Inc.(b) | 670,003 | ||||||
155,597 | Oclaro, Inc.(b) | 785,765 | ||||||
36,450 | Sanmina Corp.(b) | 862,042 | ||||||
25,189 | Sykes Enterprises, Inc.(b) | 734,259 | ||||||
8,121 | SYNNEX Corp. | 670,551 | ||||||
21,335 | Take-Two Interactive Software, Inc.(b) | 729,230 | ||||||
10,860 | Tech Data Corp.(b) | 745,973 | ||||||
|
| |||||||
29,347,959 | ||||||||
|
| |||||||
Materials—3.2% | ||||||||
37,020 | LyondellBasell Industries NV, Class A | 3,060,443 | ||||||
50,534 | Mercer International, Inc. (Canada) | 424,486 | ||||||
8,378 | Stepan Co. | 513,488 | ||||||
14,676 | Trinseo SA(b) | 627,986 | ||||||
|
| |||||||
4,626,403 | ||||||||
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 16 |
|
PowerShares Dynamic Market Portfolio (PWC) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Telecommunication Services—2.6% | ||||||||
4,924 | Atlantic Tele-Network, Inc. | $ | 354,085 | |||||
24,958 | Level 3 Communications, Inc.(b) | 1,304,305 | ||||||
15,261 | Shenandoah Telecommunications Co. | 437,838 | ||||||
13,243 | Telephone & Data Systems, Inc. | 391,596 | ||||||
23,965 | Verizon Communications, Inc. | 1,220,777 | ||||||
|
| |||||||
3,708,601 | ||||||||
|
| |||||||
Utilities—3.4% | ||||||||
10,877 | SCANA Corp. | 747,141 | ||||||
68,275 | Southern Co. (The) | 3,420,577 | ||||||
10,860 | Spire, Inc. | 694,606 | ||||||
|
| |||||||
4,862,324 | ||||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $139,161,964) | 143,114,408 | |||||||
|
| |||||||
Money Market Fund—0.0% | ||||||||
63,757 | Invesco Premier Portfolio—Institutional Class, 0.39%(c) (Cost $63,757) | 63,757 | ||||||
|
| |||||||
Total Investments (Cost $139,225,721)—100.0% | 143,178,165 | |||||||
Other assets less liabilities—(0.0)% | (56,092 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 143,122,073 | ||||||
|
|
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 17 |
|
Schedule of Investments(a)
PowerShares FTSE RAFI US 1000 Portfolio (PRF)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.0% | ||||||||
Consumer Discretionary—10.9% | ||||||||
31,550 | Abercrombie & Fitch Co., Class A | $ | 843,331 | |||||
8,697 | Advance Auto Parts, Inc. | 1,357,602 | ||||||
14,992 | Amazon.com, Inc.(b) | 9,888,573 | ||||||
34,024 | American Axle & Manufacturing Holdings, Inc.(b) | 527,712 | ||||||
69,649 | American Eagle Outfitters, Inc.(c) | 996,677 | ||||||
123,341 | Apollo Education Group, Inc., Class A(b) | 962,060 | ||||||
54,714 | Aramark | 1,833,466 | ||||||
11,440 | Asbury Automotive Group, Inc.(b) | 693,493 | ||||||
100,737 | Ascena Retail Group, Inc.(b) | 887,493 | ||||||
18,449 | Autoliv, Inc. (Sweden)(c) | 2,259,449 | ||||||
32,493 | AutoNation, Inc.(b) | 1,645,770 | ||||||
2,809 | AutoZone, Inc.(b) | 2,149,531 | ||||||
56,694 | Bed Bath & Beyond, Inc.(b) | 2,677,091 | ||||||
151,734 | Best Buy Co., Inc. | 4,867,627 | ||||||
18,745 | Big Lots, Inc. | 859,646 | ||||||
46,352 | Bloomin’ Brands, Inc. | 866,782 | ||||||
49,279 | BorgWarner, Inc. | 1,770,102 | ||||||
11,467 | Brinker International, Inc. | 531,151 | ||||||
14,408 | Brunswick Corp. | 692,016 | ||||||
11,694 | Burlington Stores, Inc.(b) | 666,207 | ||||||
11,756 | Cabela’s, Inc.(b) | 613,075 | ||||||
38,900 | Cablevision Systems Corp., Class A | 1,298,871 | ||||||
63,146 | Caesars Entertainment Corp.(b)(c) | 431,287 | ||||||
49,988 | CarMax, Inc.(b)(c) | 2,646,865 | ||||||
89,406 | Carnival Corp. | 4,385,364 | ||||||
82,001 | CBS Corp., Class B | 4,584,676 | ||||||
10,053 | Charter Communications, Inc., Class A(b)(c) | 2,133,649 | ||||||
46,715 | Chico’s FAS, Inc. | 589,076 | ||||||
1,887 | Chipotle Mexican Grill, Inc.(b) | 794,370 | ||||||
25,923 | Cinemark Holdings, Inc. | 898,232 | ||||||
59,379 | Coach, Inc. | 2,391,192 | ||||||
441,107 | Comcast Corp., Class A | 26,801,661 | ||||||
17,543 | Cooper Tire & Rubber Co. | 605,935 | ||||||
10,742 | Core-Mark Holding Co., Inc. | 877,192 | ||||||
3,370 | Cracker Barrel Old Country Store, Inc.(c) | 493,402 | ||||||
40,749 | CST Brands, Inc. | 1,539,090 | ||||||
49,192 | D.R. Horton, Inc. | 1,478,712 | ||||||
85,616 | Dana Holding Corp. | 1,107,015 | ||||||
28,245 | Darden Restaurants, Inc. | 1,758,251 | ||||||
8,911 | Deckers Outdoor Corp.(b) | 515,145 | ||||||
43,209 | Delphi Automotive PLC (United Kingdom) | 3,181,479 | ||||||
26,995 | DeVry Education Group, Inc.(c) | 468,363 | ||||||
21,730 | Dick’s Sporting Goods, Inc. | 1,006,968 | ||||||
11,328 | Dillard’s, Inc., Class A(c) | 798,058 | ||||||
24,200 | Discovery Communications, Inc., Class A(b)(c) | 660,902 | ||||||
42,821 | Discovery Communications, Inc., Class C(b) | 1,146,746 | ||||||
34,993 | DISH Network Corp., Class A(b) | 1,724,805 | ||||||
49,488 | Dollar General Corp. | 4,053,562 | ||||||
20,363 | Dollar Tree, Inc.(b) | 1,623,135 | ||||||
19,986 | DSW, Inc., Class A | 491,056 | ||||||
8,152 | Expedia, Inc., Class A | 943,757 | ||||||
21,504 | Foot Locker, Inc. | 1,321,206 | ||||||
1,819,348 | Ford Motor Co. | 24,670,359 | ||||||
16,073 | Fossil Group, Inc.(b) | 650,957 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Consumer Discretionary (continued) | ||||||||
52,440 | GameStop Corp., Class A(c) | $ | 1,720,032 | |||||
52,496 | Gannett Co., Inc. | 884,558 | ||||||
76,402 | Gap, Inc. (The)(c) | 1,770,998 | ||||||
26,795 | Garmin Ltd.(c) | 1,142,271 | ||||||
621,542 | General Motors Co. | 19,765,036 | ||||||
8,587 | Genesco, Inc.(b) | 594,049 | ||||||
44,947 | Gentex Corp. | 720,950 | ||||||
31,254 | Genuine Parts Co. | 2,999,446 | ||||||
20,727 | GNC Holdings, Inc., Class A | 504,910 | ||||||
98,163 | Goodyear Tire & Rubber Co. (The) | 2,843,782 | ||||||
1,173 | Graham Holdings Co., Class B | 558,981 | ||||||
16,000 | Group 1 Automotive, Inc. | 1,053,440 | ||||||
33,572 | Guess?, Inc. | 616,046 | ||||||
42,596 | H&R Block, Inc. | 862,143 | ||||||
34,297 | Hanesbrands, Inc. | 995,642 | ||||||
43,153 | Harley-Davidson, Inc. | 2,064,008 | ||||||
10,785 | Harman International Industries, Inc. | 827,857 | ||||||
16,974 | Hasbro, Inc. | 1,436,679 | ||||||
76,345 | Hilton Worldwide Holdings, Inc. | 1,683,407 | ||||||
143,663 | Home Depot, Inc. (The) | 19,235,039 | ||||||
79,637 | International Game Technology PLC | 1,380,906 | ||||||
72,053 | Interpublic Group of Cos., Inc. (The) | 1,652,896 | ||||||
217,533 | J.C. Penney Co., Inc.(b)(c) | 2,018,706 | ||||||
200,951 | Johnson Controls, Inc. | 8,319,371 | ||||||
85,339 | Kohl’s Corp. | 3,780,518 | ||||||
42,886 | L Brands, Inc. | 3,357,545 | ||||||
72,703 | Las Vegas Sands Corp. | 3,282,540 | ||||||
20,449 | Lear Corp. | 2,354,293 | ||||||
24,989 | Leggett & Platt, Inc. | 1,231,708 | ||||||
27,516 | Lennar Corp., Class A | 1,246,750 | ||||||
1,514 | Lennar Corp., Class B | 54,443 | ||||||
2,185 | Liberty Braves Group, Class A(b) | 34,173 | ||||||
4,362 | Liberty Braves Group, Class C(b) | 65,081 | ||||||
51,874 | Liberty Global PLC, Series A (United Kingdom)(b) | 1,957,206 | ||||||
127,230 | Liberty Global PLC, Series C (United Kingdom)(b) | 4,656,618 | ||||||
104,982 | Liberty Interactive Corp. QVC Group, Series A(b) | 2,750,528 | ||||||
352 | Liberty Interactive Corp. QVC Group, Series B(b) | 9,335 | ||||||
5,461 | Liberty Media Group, Class A(b) | 99,936 | ||||||
10,907 | Liberty Media Group, Class C(b) | 196,326 | ||||||
21,845 | Liberty SiriusXM Group, Class A(b) | 715,861 | ||||||
43,630 | Liberty SiriusXM Group, Class C(b) | 1,397,033 | ||||||
45,521 | Live Nation Entertainment, Inc.(b) | 977,791 | ||||||
43,807 | LKQ Corp.(b) | 1,404,014 | ||||||
146,771 | Lowe’s Cos., Inc. | 11,157,531 | ||||||
130,076 | Macy’s, Inc. | 5,149,709 | ||||||
22,593 | Marriott International, Inc., Class A(c) | 1,583,543 | ||||||
80,624 | Mattel, Inc. | 2,506,600 | ||||||
144,051 | McDonald’s Corp. | 18,221,011 | ||||||
120,517 | MGM Resorts International(b) | 2,567,012 | ||||||
19,375 | Michael Kors Holdings Ltd.(b) | 1,000,913 | ||||||
9,597 | Mohawk Industries, Inc.(b) | 1,848,670 | ||||||
33,348 | Murphy USA, Inc.(b) | 1,914,842 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 18 |
|
PowerShares FTSE RAFI US 1000 Portfolio (PRF) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Consumer Discretionary (continued) | ||||||||
9,422 | Netflix, Inc.(b) | $ | 848,263 | |||||
36,535 | Newell Brands, Inc. | 1,663,804 | ||||||
180,663 | News Corp., Class A | 2,243,834 | ||||||
49,614 | News Corp., Class B | 642,997 | ||||||
82,636 | NIKE, Inc., Class B | 4,870,566 | ||||||
39,842 | Nordstrom, Inc.(c) | 2,037,121 | ||||||
19,694 | Norwegian Cruise Line Holdings Ltd.(b) | 962,840 | ||||||
543 | NVR, Inc.(b) | 902,080 | ||||||
307,999 | Office Depot, Inc.(b) | 1,811,034 | ||||||
47,275 | Omnicom Group, Inc. | 3,922,407 | ||||||
6,814 | O’Reilly Automotive, Inc.(b) | 1,789,902 | ||||||
15,740 | Outerwall, Inc.(c) | 650,219 | ||||||
2,626 | Panera Bread Co., Class A(b) | 563,251 | ||||||
22,592 | Penske Automotive Group, Inc. | 884,025 | ||||||
9,366 | Polaris Industries, Inc. | 916,744 | ||||||
2,568 | Priceline Group, Inc. (The)(b) | 3,450,519 | ||||||
56,597 | PulteGroup, Inc. | 1,040,819 | ||||||
17,701 | PVH Corp. | 1,692,216 | ||||||
15,238 | Ralph Lauren Corp., Class A | 1,420,334 | ||||||
30,366 | Regal Entertainment Group, Class A(c) | 633,131 | ||||||
55,203 | Rent-A-Center, Inc. | 811,484 | ||||||
37,758 | Ross Stores, Inc. | 2,143,899 | ||||||
25,512 | Royal Caribbean Cruises Ltd. | 1,974,629 | ||||||
21,561 | Sally Beauty Holdings, Inc.(b) | 677,015 | ||||||
10,711 | Scripps Networks Interactive, Inc., Class A | 667,831 | ||||||
83,194 | Sears Holdings Corp.(b)(c) | 1,362,302 | ||||||
26,963 | SeaWorld Entertainment, Inc. | 537,373 | ||||||
33,452 | Service Corp. International | 892,165 | ||||||
13,255 | ServiceMaster Global Holdings, Inc.(b) | 507,932 | ||||||
10,510 | Signet Jewelers Ltd. | 1,140,966 | ||||||
148,749 | Sirius XM Holdings, Inc.(b)(c) | 587,559 | ||||||
11,027 | Six Flags Entertainment Corp. | 662,171 | ||||||
38,579 | Sonic Automotive, Inc., Class A | 723,742 | ||||||
436,075 | Staples, Inc. | 4,447,965 | ||||||
71,535 | Starbucks Corp. | 4,022,413 | ||||||
33,732 | Starwood Hotels & Resorts Worldwide, Inc. | 2,761,976 | ||||||
35,425 | Tailored Brands, Inc. | 617,104 | ||||||
189,400 | Target Corp. | 15,057,300 | ||||||
56,527 | TEGNA, Inc. | 1,320,471 | ||||||
27,775 | Tenneco, Inc.(b) | 1,480,408 | ||||||
10,012 | Thor Industries, Inc. | 640,968 | ||||||
21,204 | Tiffany & Co. | 1,512,905 | ||||||
44,509 | Time Warner Cable, Inc. | 9,440,804 | ||||||
213,383 | Time Warner, Inc. | 16,033,599 | ||||||
63,469 | Time, Inc. | 932,994 | ||||||
72,394 | TJX Cos., Inc. (The) | 5,488,913 | ||||||
32,972 | Toll Brothers, Inc.(b) | 900,136 | ||||||
8,242 | Tractor Supply Co. | 780,188 | ||||||
44,133 | Tribune Media Co., Class A | 1,701,327 | ||||||
12,220 | Tupperware Brands Corp. | 709,615 | ||||||
175,404 | Twenty-First Century Fox, Inc., Class A | 5,307,725 | ||||||
65,009 | Twenty-First Century Fox, Inc., Class B | 1,958,071 | ||||||
3,369 | Ulta Salon, Cosmetics & Fragrance, Inc.(b) | 701,695 | ||||||
6,187 | Under Armour, Inc., Class A(b) | 271,857 | ||||||
6,187 | Under Armour, Inc., Class C(b) | 252,430 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Consumer Discretionary (continued) | ||||||||
23,207 | Urban Outfitters, Inc.(b) | $ | 703,636 | |||||
42,214 | VF Corp. | 2,661,593 | ||||||
3,152 | Viacom, Inc., Class A | 138,467 | ||||||
111,983 | Viacom, Inc., Class B | 4,580,105 | ||||||
11,264 | Vista Outdoor, Inc.(b) | 540,447 | ||||||
20,199 | Visteon Corp. | 1,609,254 | ||||||
181,510 | Walt Disney Co. (The) | 18,742,723 | ||||||
58,711 | Wendy’s Co. (The) | 637,601 | ||||||
22,669 | Whirlpool Corp. | 3,947,580 | ||||||
13,896 | Williams-Sonoma, Inc. | 816,807 | ||||||
19,970 | Wyndham Worldwide Corp. | 1,416,872 | ||||||
36,053 | Wynn Resorts Ltd.(c) | 3,183,480 | ||||||
56,845 | Yum! Brands, Inc. | 4,522,588 | ||||||
|
| |||||||
452,310,066 | ||||||||
|
| |||||||
Consumer Staples—8.6% | ||||||||
255,096 | Altria Group, Inc. | 15,997,070 | ||||||
21,703 | Andersons, Inc. (The) | 727,268 | ||||||
350,535 | Archer-Daniels-Midland Co. | 14,000,368 | ||||||
548,846 | Avon Products, Inc. | 2,585,065 | ||||||
12,276 | Brown-Forman Corp., Class B | 1,182,424 | ||||||
134,836 | Bunge Ltd. | 8,427,250 | ||||||
25,349 | Campbell Soup Co. | 1,564,287 | ||||||
8,626 | Casey’s General Stores, Inc. | 966,112 | ||||||
12,819 | Church & Dwight Co., Inc. | 1,188,321 | ||||||
15,082 | Clorox Co. (The) | 1,888,719 | ||||||
578,299 | Coca-Cola Co. (The) | 25,907,795 | ||||||
38,879 | Coca-Cola Enterprises, Inc. | 2,040,370 | ||||||
107,274 | Colgate-Palmolive Co. | 7,607,872 | ||||||
84,536 | ConAgra Foods, Inc. | 3,766,924 | ||||||
12,835 | Constellation Brands, Inc., Class A | 2,003,030 | ||||||
94,314 | Costco Wholesale Corp. | 13,970,733 | ||||||
216,896 | CVS Health Corp. | 21,798,048 | ||||||
86,650 | Darling Ingredients, Inc.(b) | 1,255,559 | ||||||
33,171 | Dean Foods Co. | 571,536 | ||||||
24,229 | Dr Pepper Snapple Group, Inc. | 2,202,658 | ||||||
10,981 | Edgewell Personal Care Co. | 901,211 | ||||||
14,102 | Energizer Holdings, Inc. | 613,296 | ||||||
17,161 | Estee Lauder Cos., Inc. (The), Class A | 1,645,225 | ||||||
40,525 | Flowers Foods, Inc. | 776,459 | ||||||
105,840 | General Mills, Inc. | 6,492,226 | ||||||
14,304 | Hain Celestial Group, Inc. (The)(b) | 598,765 | ||||||
18,635 | Herbalife Ltd.(b) | 1,079,898 | ||||||
19,073 | Hershey Co. (The) | 1,775,887 | ||||||
24,291 | Hormel Foods Corp. | 936,418 | ||||||
51,546 | HRG Group, Inc.(b) | 742,262 | ||||||
12,082 | Ingredion, Inc. | 1,390,517 | ||||||
19,235 | JM Smucker Co. (The) | 2,442,460 | ||||||
40,310 | Kellogg Co. | 3,096,211 | ||||||
50,658 | Kimberly-Clark Corp. | 6,341,875 | ||||||
39,925 | Kraft Heinz Co. (The) | 3,116,945 | ||||||
278,388 | Kroger Co. (The) | 9,852,151 | ||||||
13,343 | McCormick & Co., Inc. | 1,251,307 | ||||||
20,994 | Mead Johnson Nutrition Co. | 1,829,627 | ||||||
18,566 | Molson Coors Brewing Co., Class B | 1,775,467 | ||||||
300,985 | Mondelez International, Inc., Class A | 12,930,316 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 19 |
|
PowerShares FTSE RAFI US 1000 Portfolio (PRF) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Consumer Staples (continued) | ||||||||
4,671 | Monster Beverage Corp.(b) | $ | 673,652 | |||||
19,030 | Nu Skin Enterprises, Inc., Class A(c) | 775,853 | ||||||
230,823 | PepsiCo, Inc. | 23,765,536 | ||||||
269,305 | Philip Morris International, Inc. | 26,424,207 | ||||||
16,516 | Pinnacle Foods, Inc. | 703,416 | ||||||
500,894 | Procter & Gamble Co. (The) | 40,131,627 | ||||||
73,524 | Reynolds American, Inc. | 3,646,790 | ||||||
315,657 | Rite Aid Corp.(b) | 2,541,039 | ||||||
335,552 | SUPERVALU, Inc.(b) | 1,687,827 | ||||||
150,691 | Sysco Corp. | 6,942,334 | ||||||
6,695 | TreeHouse Foods, Inc.(b) | 591,838 | ||||||
58,863 | Tyson Foods, Inc., Class A | 3,874,363 | ||||||
21,316 | United Natural Foods, Inc.(b) | 760,342 | ||||||
10,863 | Universal Corp. | 592,577 | ||||||
136,837 | Walgreens Boots Alliance, Inc. | 10,848,437 | ||||||
609,799 | Wal-Mart Stores, Inc. | 40,777,259 | ||||||
15,569 | WhiteWave Foods Co. (The)(b) | 626,029 | ||||||
75,572 | Whole Foods Market, Inc. | 2,197,634 | ||||||
|
| |||||||
356,800,692 | ||||||||
|
| |||||||
Energy—14.1% | ||||||||
201,127 | Anadarko Petroleum Corp. | 10,611,461 | ||||||
226,866 | Apache Corp. | 12,341,510 | ||||||
116,182 | Atwood Oceanics, Inc.(c) | 1,122,318 | ||||||
149,358 | Baker Hughes, Inc. | 7,222,953 | ||||||
35,589 | Cabot Oil & Gas Corp. | 832,783 | ||||||
2,614,549 | California Resources Corp. | 5,752,008 | ||||||
2,232,976 | Chesapeake Energy Corp.(c) | 15,340,545 | ||||||
869,481 | Chevron Corp. | 88,843,569 | ||||||
14,674 | Cimarex Energy Co. | 1,597,705 | ||||||
30,861 | Columbia Pipeline Group, Inc. | 790,659 | ||||||
17,601 | Concho Resources, Inc.(b) | 2,044,708 | ||||||
859,732 | ConocoPhillips | 41,086,592 | ||||||
203,250 | CONSOL Energy, Inc.(c) | 3,058,912 | ||||||
25,100 | Continental Resources, Inc.(b) | 935,226 | ||||||
139,178 | Cosan Ltd., Class A (Brazil) | 748,778 | ||||||
61,667 | Delek US Holdings, Inc. | 979,889 | ||||||
1,384,059 | Denbury Resources, Inc.(c) | 5,342,468 | ||||||
349,003 | Devon Energy Corp. | 12,103,424 | ||||||
73,831 | Diamond Offshore Drilling, Inc.(c) | 1,791,140 | ||||||
38,011 | Energen Corp. | 1,615,087 | ||||||
331,138 | Ensco PLC, Class A | 3,960,410 | ||||||
90,089 | EOG Resources, Inc. | 7,443,153 | ||||||
22,895 | EQT Corp. | 1,604,940 | ||||||
1,362,176 | Exxon Mobil Corp. | 120,416,358 | ||||||
63,801 | FMC Technologies, Inc.(b) | 1,945,292 | ||||||
32,537 | Golar LNG Ltd. (Bermuda)(c) | 539,463 | ||||||
17,828 | Gulfport Energy Corp.(b) | 558,016 | ||||||
248,157 | Halliburton Co. | 10,251,366 | ||||||
29,648 | Helmerich & Payne, Inc.(c) | 1,960,326 | ||||||
170,244 | Hess Corp. | 10,149,947 | ||||||
127,980 | HollyFrontier Corp. | 4,556,088 | ||||||
521,285 | Kinder Morgan, Inc. | 9,258,022 | ||||||
1,039,601 | Marathon Oil Corp. | 14,647,978 | ||||||
322,314 | Marathon Petroleum Corp. | 12,596,031 | ||||||
263,908 | McDermott International, Inc.(b) | 1,198,142 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Energy (continued) | ||||||||
230,265 | Murphy Oil Corp.(c) | $ | 8,229,671 | |||||
242,747 | Nabors Industries Ltd. | 2,378,921 | ||||||
219,743 | National Oilwell Varco, Inc. | 7,919,538 | ||||||
64,081 | Newfield Exploration Co.(b) | 2,322,936 | ||||||
276,120 | Noble Corp. PLC (United Kingdom)(c) | 3,100,828 | ||||||
97,542 | Noble Energy, Inc. | 3,522,242 | ||||||
120,260 | Oasis Petroleum, Inc.(b) | 1,165,319 | ||||||
224,654 | Occidental Petroleum Corp. | 17,219,729 | ||||||
30,543 | Oceaneering International, Inc. | 1,119,401 | ||||||
25,053 | Oil States International, Inc.(b) | 867,836 | ||||||
112,997 | ONEOK, Inc. | 4,084,842 | ||||||
70,537 | Patterson-UTI Energy, Inc. | 1,393,106 | ||||||
56,541 | PBF Energy, Inc., Class A | 1,819,489 | ||||||
225,346 | Phillips 66 | 18,503,160 | ||||||
14,908 | Pioneer Natural Resources Co. | 2,476,219 | ||||||
113,504 | QEP Resources, Inc. | 2,035,127 | ||||||
39,421 | Range Resources Corp.(c) | 1,738,860 | ||||||
75,682 | Rowan Cos. PLC, Class A | 1,423,578 | ||||||
234,948 | Schlumberger Ltd. | 18,875,722 | ||||||
12,027 | SEACOR Holdings, Inc.(b) | 706,827 | ||||||
101,213 | SM Energy Co.(c) | 3,153,797 | ||||||
285,139 | Southwestern Energy Co.(b)(c) | 3,829,417 | ||||||
168,676 | Spectra Energy Corp. | 5,274,499 | ||||||
287,424 | Stone Energy Corp.(b)(c) | 281,704 | ||||||
122,309 | Superior Energy Services, Inc. | 2,062,130 | ||||||
42,521 | Targa Resources Corp. | 1,720,400 | ||||||
60,701 | Teekay Corp. (Bermuda)(c) | 679,851 | ||||||
49,653 | Tesoro Corp. | 3,956,848 | ||||||
104,939 | Tidewater, Inc.(c) | 919,266 | ||||||
485,734 | Transocean Ltd.(c) | 5,381,933 | ||||||
130,141 | Unit Corp.(b) | 1,647,585 | ||||||
263,825 | Valero Energy Corp. | 15,531,378 | ||||||
571,479 | Weatherford International PLC(b) | 4,646,124 | ||||||
42,494 | Western Refining, Inc. | 1,137,139 | ||||||
411,798 | Whiting Petroleum Corp.(b)(c) | 4,941,576 | ||||||
311,506 | Williams Cos., Inc. (The) | 6,040,101 | ||||||
55,436 | World Fuel Services Corp. | 2,590,524 | ||||||
282,621 | WPX Energy, Inc.(b) | 2,730,119 | ||||||
|
| |||||||
582,675,009 | ||||||||
|
| |||||||
Financials—21.4% | ||||||||
7,988 | Affiliated Managers Group, Inc.(b) | 1,360,516 | ||||||
129,842 | Aflac, Inc. | 8,955,203 | ||||||
13,452 | Alexandria Real Estate Equities, Inc. REIT | 1,250,363 | ||||||
4,545 | Alleghany Corp.(b) | 2,369,218 | ||||||
33,198 | Allied World Assurance Co. Holdings AG | 1,181,185 | ||||||
126,905 | Allstate Corp. (The) | 8,255,170 | ||||||
344,065 | Ally Financial, Inc.(b) | 6,127,798 | ||||||
36,437 | Ambac Financial Group, Inc.(b) | 591,373 | ||||||
19,061 | American Campus Communities, Inc. REIT | 852,980 | ||||||
137,422 | American Capital Agency Corp. REIT | 2,524,442 | ||||||
44,638 | American Equity Investment Life Holding Co. | 624,932 | ||||||
202,947 | American Express Co. | 13,278,822 | ||||||
23,021 | American Financial Group, Inc. | 1,590,981 | ||||||
531,759 | American International Group, Inc. | 29,682,787 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 20 |
|
PowerShares FTSE RAFI US 1000 Portfolio (PRF) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
25,107 | American Tower Corp. REIT | $ | 2,633,222 | |||||
43,958 | Ameriprise Financial, Inc. | 4,215,572 | ||||||
396,687 | Annaly Capital Management, Inc. REIT | 4,133,479 | ||||||
35,943 | Aon PLC | 3,778,328 | ||||||
20,150 | Apartment Investment & Management Co., Class A REIT | 807,209 | ||||||
45,136 | Apple Hospitality REIT, Inc. REIT(c) | 854,425 | ||||||
24,045 | Arch Capital Group Ltd. (Bermuda)(b) | 1,694,932 | ||||||
33,852 | Arthur J. Gallagher & Co. | 1,558,546 | ||||||
18,048 | Aspen Insurance Holdings Ltd. (Bermuda) | 836,525 | ||||||
37,370 | Associated Banc-Corp. | 681,629 | ||||||
28,435 | Assurant, Inc. | 2,404,748 | ||||||
48,153 | Assured Guaranty Ltd. | 1,245,718 | ||||||
14,831 | AvalonBay Communities, Inc. REIT | 2,621,973 | ||||||
28,363 | Axis Capital Holdings Ltd. | 1,510,897 | ||||||
3,787,199 | Bank of America Corp. | 55,141,617 | ||||||
8,310 | Bank of Hawaii Corp. | 568,487 | ||||||
276,256 | Bank of New York Mellon Corp. (The) | 11,116,541 | ||||||
18,389 | BankUnited, Inc. | 634,421 | ||||||
214,076 | BB&T Corp. | 7,574,009 | ||||||
440,371 | Berkshire Hathaway, Inc., Class B(b) | 64,065,173 | ||||||
21,934 | BlackRock, Inc. | 7,815,742 | ||||||
25,351 | Boston Properties, Inc. REIT | 3,266,730 | ||||||
56,023 | Brandywine Realty Trust REIT | 837,544 | ||||||
30,409 | Brixmor Property Group, Inc. REIT | 767,827 | ||||||
18,557 | Brown & Brown, Inc. | 651,536 | ||||||
14,981 | Camden Property Trust REIT | 1,209,416 | ||||||
174,678 | Capital One Financial Corp. | 12,644,940 | ||||||
46,143 | Capitol Federal Financial, Inc. | 613,241 | ||||||
18,280 | Care Capital Properties, Inc. REIT | 487,528 | ||||||
85,440 | CBL & Associates Properties, Inc. REIT | 997,939 | ||||||
52,008 | CBRE Group, Inc., Class A(b) | 1,540,997 | ||||||
120,047 | Charles Schwab Corp. (The) | 3,410,535 | ||||||
78,740 | Chimera Investment Corp. REIT | 1,118,108 | ||||||
74,649 | Chubb Ltd. | 8,798,131 | ||||||
30,860 | Cincinnati Financial Corp. | 2,037,069 | ||||||
74,978 | CIT Group, Inc. | 2,591,990 | ||||||
1,193,309 | Citigroup, Inc. | 55,226,341 | ||||||
241,282 | Citizens Financial Group, Inc. | 5,513,294 | ||||||
64,270 | CME Group, Inc., Class A | 5,907,056 | ||||||
67,976 | CNO Financial Group, Inc. | 1,248,719 | ||||||
48,973 | Columbia Property Trust, Inc. REIT | 1,092,098 | ||||||
52,653 | Comerica, Inc. | 2,337,793 | ||||||
19,861 | Commerce Bancshares, Inc. | 929,892 | ||||||
26,118 | Corporate Office Properties Trust REIT | 670,710 | ||||||
41,265 | Corrections Corp. of America REIT | 1,255,281 | ||||||
22,091 | Crown Castle International Corp. REIT | 1,919,266 | ||||||
15,566 | Cullen/Frost Bankers, Inc. | 996,068 | ||||||
14,479 | DCT Industrial Trust, Inc. REIT | 584,517 | ||||||
55,914 | DDR Corp. REIT | 978,495 | ||||||
62,319 | DiamondRock Hospitality Co. REIT | 555,262 | ||||||
19,416 | Digital Realty Trust, Inc. REIT | 1,708,220 | ||||||
102,282 | Discover Financial Services | 5,755,408 | ||||||
23,634 | Douglas Emmett, Inc. REIT | 766,923 | ||||||
58,705 | Duke Realty Corp. REIT | 1,283,878 | ||||||
73,171 | E*TRADE Financial Corp.(b) | 1,842,446 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
27,352 | East West Bancorp, Inc. | $ | 1,025,427 | |||||
24,159 | Eaton Vance Corp. | 834,210 | ||||||
12,086 | Endurance Specialty Holdings Ltd. | 773,262 | ||||||
8,922 | EPR Properties REIT | 587,781 | ||||||
3,622 | Equinix, Inc. REIT | 1,196,528 | ||||||
32,766 | Equity Commonwealth REIT(b) | 914,499 | ||||||
6,736 | Equity LifeStyle Properties, Inc. REIT | 461,349 | ||||||
53,711 | Equity Residential REIT | 3,656,108 | ||||||
6,853 | Essex Property Trust, Inc. REIT | 1,510,744 | ||||||
9,201 | Everest Re Group Ltd. | 1,701,265 | ||||||
7,416 | Extra Space Storage, Inc. REIT | 629,989 | ||||||
44,147 | F.N.B. Corp. | 583,623 | ||||||
6,312 | Federal Realty Investment Trust REIT | 959,929 | ||||||
25,616 | Federated Investors, Inc., Class B | 809,466 | ||||||
293,806 | Fifth Third Bancorp | 5,379,588 | ||||||
26,356 | First American Financial Corp. | 949,343 | ||||||
45,289 | First Horizon National Corp. | 637,669 | ||||||
106,037 | First Niagara Financial Group, Inc. | 1,119,751 | ||||||
16,589 | First Republic Bank | 1,166,539 | ||||||
40,030 | FirstMerit Corp. | 887,065 | ||||||
62,097 | FNF Group | 1,980,894 | ||||||
95,659 | Franklin Resources, Inc. | 3,571,907 | ||||||
47,583 | Fulton Financial Corp. | 665,686 | ||||||
68,535 | General Growth Properties, Inc. REIT | 1,921,036 | ||||||
1,360,538 | Genworth Financial, Inc., Class A(b) | 4,666,645 | ||||||
�� | 20,611 | Geo Group, Inc. (The) REIT | 660,170 | |||||
133,848 | Goldman Sachs Group, Inc. (The) | 21,965,795 | ||||||
29,086 | Hancock Holding Co. | 755,363 | ||||||
11,861 | Hanover Insurance Group, Inc. (The) | 1,017,199 | ||||||
163,056 | Hartford Financial Services Group, Inc. (The) | 7,236,425 | ||||||
49,214 | Hatteras Financial Corp. REIT | 782,011 | ||||||
121,718 | HCP, Inc. REIT | 4,117,720 | ||||||
18,360 | Healthcare Realty Trust, Inc. REIT | 555,941 | ||||||
18,995 | Healthcare Trust of America, Inc., Class A REIT | 548,766 | ||||||
16,851 | Highwoods Properties, Inc. REIT | 787,447 | ||||||
58,671 | Hospitality Properties Trust REIT | 1,501,391 | ||||||
171,337 | Host Hotels & Resorts, Inc. REIT | 2,710,551 | ||||||
216,839 | Huntington Bancshares, Inc. | 2,181,400 | ||||||
9,202 | Intercontinental Exchange, Inc. | 2,208,756 | ||||||
101,508 | Invesco Ltd.(d) | 3,147,763 | ||||||
68,097 | Invesco Mortgage Capital, Inc. REIT(d) | 875,047 | ||||||
54,016 | Investors Bancorp, Inc. | 623,885 | ||||||
65,063 | Iron Mountain, Inc. REIT | 2,376,751 | ||||||
39,920 | Janus Capital Group, Inc. | 582,832 | ||||||
8,096 | Jones Lang LaSalle, Inc. | 932,416 | ||||||
1,131,265 | JPMorgan Chase & Co. | 71,495,948 | ||||||
19,945 | Kemper Corp. | 617,497 | ||||||
257,507 | KeyCorp | 3,164,761 | ||||||
13,241 | Kilroy Realty Corp. REIT | 858,149 | ||||||
56,939 | Kimco Realty Corp. REIT | 1,601,125 | ||||||
9,032 | Lamar Advertising Co., Class A REIT | 560,345 | ||||||
27,520 | LaSalle Hotel Properties REIT | 657,728 | ||||||
34,162 | Legg Mason, Inc. | 1,096,942 | ||||||
137,218 | Leucadia National Corp. | 2,288,796 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 21 |
|
PowerShares FTSE RAFI US 1000 Portfolio (PRF) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
79,158 | Lexington Realty Trust REIT | $ | 695,007 | |||||
40,183 | Liberty Property Trust REIT | 1,402,387 | ||||||
107,014 | Lincoln National Corp. | 4,649,758 | ||||||
116,149 | Loews Corp. | 4,608,792 | ||||||
33,381 | LPL Financial Holdings, Inc.(c) | 881,258 | ||||||
28,191 | M&T Bank Corp. | 3,335,559 | ||||||
22,149 | Macerich Co. (The) REIT | 1,685,096 | ||||||
41,902 | Mack-Cali Realty Corp. REIT | 1,071,015 | ||||||
2,140 | Markel Corp.(b) | 1,924,095 | ||||||
74,965 | Marsh & McLennan Cos., Inc. | 4,734,040 | ||||||
144,756 | MBIA, Inc.(b) | 1,129,097 | ||||||
8,935 | Mercury General Corp. | 472,662 | ||||||
424,206 | MetLife, Inc. | 19,131,691 | ||||||
132,088 | MFA Financial, Inc. REIT | 912,728 | ||||||
10,018 | Mid-America Apartment Communities, Inc. REIT | 958,823 | ||||||
14,320 | Moody’s Corp. | 1,370,710 | ||||||
432,733 | Morgan Stanley | 11,709,755 | ||||||
8,024 | MSCI, Inc. | 609,343 | ||||||
20,107 | Nasdaq, Inc. | 1,240,803 | ||||||
16,206 | National Retail Properties, Inc. REIT | 709,175 | ||||||
292,371 | Navient Corp. | 3,996,712 | ||||||
70,838 | New Residential Investment Corp. REIT | 857,140 | ||||||
158,902 | New York Community Bancorp, Inc. | 2,388,297 | ||||||
46,652 | Northern Trust Corp. | 3,316,024 | ||||||
66,970 | NorthStar Realty Finance Corp. REIT | 856,546 | ||||||
77,896 | Old Republic International Corp. | 1,440,297 | ||||||
17,607 | OMEGA Healthcare Investors, Inc. REIT | 594,588 | ||||||
44,080 | Outfront Media, Inc. REIT | 956,095 | ||||||
19,161 | PacWest Bancorp | 766,057 | ||||||
36,650 | Paramount Group, Inc. REIT | 612,055 | ||||||
44,078 | PennyMac Mortgage Investment Trust REIT | 599,020 | ||||||
101,353 | People’s United Financial, Inc.(c) | 1,570,972 | ||||||
89,121 | PHH Corp.(b) | 1,143,422 | ||||||
51,705 | Piedmont Office Realty Trust, Inc., Class A REIT | 1,029,447 | ||||||
140,243 | PNC Financial Services Group, Inc. (The) | 12,310,531 | ||||||
51,453 | Popular, Inc. | 1,529,183 | ||||||
92,162 | Principal Financial Group, Inc. | 3,933,474 | ||||||
15,746 | ProAssurance Corp. | 751,557 | ||||||
144,152 | Progressive Corp. (The) | 4,699,355 | ||||||
93,545 | Prologis, Inc. REIT | 4,247,878 | ||||||
15,691 | Prosperity Bancshares, Inc. | 828,014 | ||||||
204,744 | Prudential Financial, Inc. | 15,896,324 | ||||||
9,604 | Public Storage REIT | 2,351,155 | ||||||
24,161 | Raymond James Financial, Inc. | 1,260,479 | ||||||
41,577 | Rayonier, Inc. REIT | 1,026,120 | ||||||
38,241 | Realogy Holdings Corp.(b) | 1,366,733 | ||||||
22,596 | Realty Income Corp. REIT | 1,337,683 | ||||||
11,196 | Regency Centers Corp. REIT | 825,145 | ||||||
493,136 | Regions Financial Corp. | 4,625,616 | ||||||
25,046 | Reinsurance Group of America, Inc. | 2,384,880 | ||||||
8,150 | RenaissanceRe Holdings Ltd. (Bermuda) | 903,917 | ||||||
58,399 | Retail Properties of America, Inc., Class A REIT | 933,800 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
8,750 | RLI Corp. | $ | 544,075 | |||||
36,799 | RLJ Lodging Trust REIT | 775,355 | ||||||
10,287 | Ryman Hospitality Properties, Inc. REIT | 530,089 | ||||||
26,121 | S&P Global, Inc. | 2,791,029 | ||||||
81,388 | Santander Consumer USA Holdings, Inc.(b) | 1,071,880 | ||||||
73,171 | Senior Housing Properties Trust REIT | 1,286,346 | ||||||
5,138 | Signature Bank(b) | 708,171 | ||||||
28,754 | Simon Property Group, Inc. REIT | 5,784,442 | ||||||
17,232 | SL Green Realty Corp. REIT | 1,810,739 | ||||||
293,946 | SLM Corp.(b) | 1,990,014 | ||||||
69,078 | Spirit Realty Capital, Inc. REIT | 789,562 | ||||||
57,611 | Starwood Property Trust, Inc. REIT | 1,115,349 | ||||||
98,127 | State Street Corp. | 6,113,312 | ||||||
22,525 | Stifel Financial Corp.(b) | 741,298 | ||||||
40,314 | Sunstone Hotel Investors, Inc. REIT | 516,422 | ||||||
162,611 | SunTrust Banks, Inc. | 6,787,383 | ||||||
10,611 | SVB Financial Group(b) | 1,106,515 | ||||||
241,679 | Synchrony Financial(b) | 7,388,127 | ||||||
27,741 | Synovus Financial Corp. | 864,410 | ||||||
39,269 | T. Rowe Price Group, Inc. | 2,956,563 | ||||||
10,653 | Taubman Centers, Inc. REIT | 739,851 | ||||||
50,597 | TCF Financial Corp. | 690,143 | ||||||
29,636 | TD Ameritrade Holding Corp. | 884,042 | ||||||
29,841 | Torchmark Corp. | 1,727,496 | ||||||
106,112 | Travelers Cos., Inc. (The) | 11,661,709 | ||||||
116,408 | Two Harbors Investment Corp. REIT | 911,475 | ||||||
370,644 | U.S. Bancorp | 15,822,792 | ||||||
33,249 | UDR, Inc. REIT | 1,161,055 | ||||||
51,777 | Umpqua Holdings Corp. | 819,630 | ||||||
101,168 | Unum Group | 3,460,957 | ||||||
23,116 | Validus Holdings Ltd. | 1,065,416 | ||||||
72,758 | Valley National Bancorp | 688,291 | ||||||
60,988 | Ventas, Inc. REIT | 3,788,575 | ||||||
181,908 | VEREIT, Inc. REIT | 1,615,343 | ||||||
29,377 | Vornado Realty Trust REIT | 2,812,260 | ||||||
120,194 | Voya Financial, Inc. | 3,902,699 | ||||||
27,410 | W.R. Berkley Corp. | 1,534,960 | ||||||
28,610 | Waddell & Reed Financial, Inc., Class A | 581,927 | ||||||
25,146 | Washington Federal, Inc. | 610,796 | ||||||
17,936 | Webster Financial Corp. | 657,175 | ||||||
19,248 | Weingarten Realty Investors REIT | 710,636 | ||||||
1,186,859 | Wells Fargo & Co. | 59,319,213 | ||||||
64,557 | Welltower, Inc. REIT | 4,481,547 | ||||||
210,941 | Weyerhaeuser Co. REIT | 6,775,425 | ||||||
12,333 | Willis Towers Watson PLC | 1,540,392 | ||||||
15,629 | WP Carey, Inc. REIT | 954,776 | ||||||
68,918 | WP GLIMCHER, Inc. REIT | 722,950 | ||||||
34,677 | Xenia Hotels & Resorts, Inc. REIT | 533,332 | ||||||
74,047 | XL Group PLC | 2,423,558 | ||||||
61,565 | Zions Bancorporation | 1,694,269 | ||||||
|
| |||||||
887,117,465 | ||||||||
|
| |||||||
Health Care—10.0% | ||||||||
243,965 | Abbott Laboratories | 9,490,238 | ||||||
145,690 | AbbVie, Inc. | 8,887,090 | ||||||
73,160 | Aetna, Inc. | 8,213,673 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 22 |
|
PowerShares FTSE RAFI US 1000 Portfolio (PRF) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Health Care (continued) | ||||||||
36,341 | Agilent Technologies, Inc. | $ | 1,487,074 | |||||
9,494 | Alere, Inc.(b) | 370,266 | ||||||
6,707 | Alexion Pharmaceuticals, Inc.(b) | 934,151 | ||||||
20,928 | Allergan PLC(b) | 4,532,168 | ||||||
95,895 | AmerisourceBergen Corp. | 8,160,664 | ||||||
73,213 | Amgen, Inc. | 11,589,618 | ||||||
7,939 | AmSurg Corp.(b) | 642,900 | ||||||
89,705 | Anthem, Inc. | 12,627,773 | ||||||
35,632 | Baxalta, Inc. | 1,494,762 | ||||||
90,963 | Baxter International, Inc. | 4,022,384 | ||||||
23,101 | Becton, Dickinson and Co. | 3,725,267 | ||||||
15,913 | Biogen, Inc.(b) | 4,375,916 | ||||||
3,796 | Bio-Rad Laboratories, Inc., Class A(b) | 538,463 | ||||||
110 | Bio-Rad Laboratories, Inc., Class B(b) | 14,850 | ||||||
106,484 | Boston Scientific Corp.(b) | 2,334,129 | ||||||
194,907 | Bristol-Myers Squibb Co. | 14,068,387 | ||||||
72,124 | Brookdale Senior Living, Inc.(b) | 1,331,409 | ||||||
5,799 | C.R. Bard, Inc. | 1,230,374 | ||||||
131,193 | Cardinal Health, Inc. | 10,293,403 | ||||||
28,665 | Celgene Corp.(b) | 2,964,248 | ||||||
23,496 | Centene Corp.(b) | 1,455,812 | ||||||
22,529 | Cerner Corp.(b) | 1,264,778 | ||||||
35,974 | Cigna Corp. | 4,983,838 | ||||||
171,517 | Community Health Systems, Inc.(b) | 3,272,544 | ||||||
4,375 | Cooper Cos., Inc. (The) | 669,725 | ||||||
45,854 | DaVita HealthCare Partners, Inc.(b) | 3,388,611 | ||||||
14,773 | Dentsply Sirona, Inc. | 880,471 | ||||||
10,927 | Edwards Lifesciences Corp.(b) | 1,160,557 | ||||||
161,008 | Eli Lilly & Co. | 12,160,934 | ||||||
13,872 | Endo International PLC(b) | 374,544 | ||||||
42,015 | Envision Healthcare Holdings, Inc.(b) | 950,799 | ||||||
209,368 | Express Scripts Holding Co.(b) | 15,436,703 | ||||||
90,038 | Gilead Sciences, Inc. | 7,942,252 | ||||||
23,092 | Halyard Health, Inc.(b) | 650,271 | ||||||
110,639 | HCA Holdings, Inc.(b) | 8,919,716 | ||||||
16,447 | HealthSouth Corp. | 681,893 | ||||||
11,438 | Henry Schein, Inc.(b) | 1,929,591 | ||||||
23,503 | Hologic, Inc.(b) | 789,466 | ||||||
34,182 | Humana, Inc. | 6,052,607 | ||||||
3,858 | Illumina, Inc.(b) | 520,791 | ||||||
20,141 | IMS Health Holdings, Inc.(b) | 536,556 | ||||||
2,286 | Intuitive Surgical, Inc.(b) | 1,431,859 | ||||||
421,779 | Johnson & Johnson | 47,272,990 | ||||||
79,791 | Kindred Healthcare, Inc. | 1,177,715 | ||||||
16,668 | Laboratory Corp. of America Holdings(b) | 2,088,834 | ||||||
15,235 | LifePoint Health, Inc.(b) | 1,029,277 | ||||||
12,365 | Magellan Health, Inc.(b) | 871,238 | ||||||
18,907 | Mallinckrodt PLC(b) | 1,182,066 | ||||||
88,501 | McKesson Corp. | 14,852,238 | ||||||
12,722 | MEDNAX, Inc.(b) | 906,951 | ||||||
178,790 | Medtronic PLC | 14,151,229 | ||||||
607,423 | Merck & Co., Inc. | 33,311,077 | ||||||
1,836 | Mettler-Toledo International, Inc.(b) | 657,196 | ||||||
11,240 | Molina Healthcare, Inc.(b) | 581,782 | ||||||
41,206 | Mylan NV(b) | 1,718,702 | ||||||
26,127 | Owens & Minor, Inc. | 950,762 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Health Care (continued) | ||||||||
15,607 | Patterson Cos., Inc. | $ | 676,563 | |||||
157,363 | PDL BioPharma, Inc. | 593,259 | ||||||
13,386 | PerkinElmer, Inc. | 674,922 | ||||||
14,329 | Perrigo Co. PLC | 1,385,184 | ||||||
1,433,259 | Pfizer, Inc. | 46,881,902 | ||||||
33,180 | Quest Diagnostics, Inc. | 2,494,141 | ||||||
13,230 | Quintiles Transnational Holdings, Inc.(b) | 913,796 | ||||||
1,643 | Regeneron Pharmaceuticals, Inc.(b) | 618,935 | ||||||
11,055 | ResMed, Inc. | 616,869 | ||||||
62,765 | Select Medical Holdings Corp.(b) | 839,796 | ||||||
43,101 | St. Jude Medical, Inc. | 3,284,296 | ||||||
7,920 | STERIS PLC | 559,706 | ||||||
27,922 | Stryker Corp. | 3,043,777 | ||||||
4,972 | Teleflex, Inc. | 774,538 | ||||||
81,209 | Tenet Healthcare Corp.(b) | 2,573,513 | ||||||
39,805 | Thermo Fisher Scientific, Inc. | 5,741,871 | ||||||
4,309 | United Therapeutics Corp.(b) | 453,307 | ||||||
170,168 | UnitedHealth Group, Inc. | 22,407,722 | ||||||
14,193 | Universal Health Services, Inc., Class B | 1,897,320 | ||||||
12,367 | Varian Medical Systems, Inc.(b) | 1,003,953 | ||||||
9,211 | VCA, Inc.(b) | 580,017 | ||||||
6,855 | Waters Corp.(b) | 892,247 | ||||||
14,534 | WellCare Health Plans, Inc.(b) | 1,307,915 | ||||||
18,715 | Zimmer Biomet Holdings, Inc. | 2,166,636 | ||||||
33,649 | Zoetis, Inc. | 1,582,512 | ||||||
|
| |||||||
413,500,279 | ||||||||
|
| |||||||
Industrials—10.5% | ||||||||
82,106 | 3M Co. | 13,742,902 | ||||||
19,075 | ABM Industries, Inc. | 613,643 | ||||||
2,385 | Acuity Brands, Inc. | 581,678 | ||||||
39,653 | ADT Corp. (The) | 1,664,633 | ||||||
48,913 | AECOM(b) | 1,589,183 | ||||||
50,237 | AerCap Holdings NV (Ireland)(b) | 2,009,982 | ||||||
34,337 | AGCO Corp. | 1,835,999 | ||||||
18,246 | Air Lease Corp. | 556,138 | ||||||
32,736 | Allison Transmission Holdings, Inc. | 943,124 | ||||||
22,187 | American Airlines Group, Inc. | 769,667 | ||||||
26,304 | AMETEK, Inc. | 1,264,959 | ||||||
17,376 | Armstrong Flooring, Inc.(b) | 252,995 | ||||||
34,752 | Armstrong World Industries, Inc.(b) | 1,418,229 | ||||||
77,031 | Avis Budget Group, Inc.(b) | 1,933,478 | ||||||
123,136 | Boeing Co. (The) | 16,598,733 | ||||||
18,191 | Brink’s Co. (The) | 615,583 | ||||||
28,449 | C.H. Robinson Worldwide, Inc. | 2,019,026 | ||||||
8,997 | Carlisle Cos., Inc. | 916,794 | ||||||
222,103 | Caterpillar, Inc. | 17,261,845 | ||||||
37,161 | Chicago Bridge & Iron Co. NV | 1,495,730 | ||||||
12,365 | Cintas Corp. | 1,110,130 | ||||||
14,773 | Clean Harbors, Inc.(b) | 729,786 | ||||||
34,844 | Colfax Corp.(b) | 1,129,991 | ||||||
45,341 | Covanta Holding Corp. | 737,245 | ||||||
11,015 | Crane Co. | 612,104 | ||||||
238,809 | CSX Corp. | 6,512,321 | ||||||
46,304 | Cummins, Inc. | 5,418,957 | ||||||
8,254 | Curtiss-Wright Corp. | 632,091 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 23 |
|
PowerShares FTSE RAFI US 1000 Portfolio (PRF) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Industrials (continued) | ||||||||
61,386 | Danaher Corp. | $ | 5,939,095 | |||||
107,394 | Deere & Co.(c) | 9,032,909 | ||||||
31,459 | Delta Air Lines, Inc. | 1,310,897 | ||||||
9,798 | Deluxe Corp. | 615,118 | ||||||
21,201 | Donaldson Co., Inc. | 692,849 | ||||||
35,348 | Dover Corp. | 2,322,364 | ||||||
6,107 | Dun & Bradstreet Corp. (The) | 674,274 | ||||||
111,134 | Eaton Corp. PLC | 7,031,448 | ||||||
16,006 | EMCOR Group, Inc. | 775,971 | ||||||
174,766 | Emerson Electric Co. | 9,547,467 | ||||||
9,943 | EnerSys | 580,373 | ||||||
10,093 | Equifax, Inc. | 1,213,683 | ||||||
24,213 | Essendant, Inc. | 745,518 | ||||||
12,699 | Esterline Technologies Corp.(b) | 871,913 | ||||||
28,731 | Expeditors International of Washington, Inc. | 1,425,345 | ||||||
33,960 | Fastenal Co.(c) | 1,588,988 | ||||||
59,954 | FedEx Corp. | 9,899,005 | ||||||
28,098 | Flowserve Corp. | 1,371,463 | ||||||
67,238 | Fluor Corp. | 3,675,229 | ||||||
16,066 | Fortune Brands Home & Security, Inc. | 890,217 | ||||||
13,712 | FTI Consulting, Inc.(b) | 552,594 | ||||||
13,607 | GATX Corp. | 625,106 | ||||||
20,448 | Generac Holdings, Inc.(b) | 779,478 | ||||||
80,949 | General Cable Corp. | 1,266,042 | ||||||
56,711 | General Dynamics Corp. | 7,969,030 | ||||||
2,066,458 | General Electric Co. | 63,543,583 | ||||||
12,610 | Genesee & Wyoming, Inc., Class A(b) | 821,037 | ||||||
91,525 | Harsco Corp. | 648,912 | ||||||
44,546 | HD Supply Holdings, Inc.(b) | 1,527,037 | ||||||
418,350 | Hertz Global Holdings, Inc.(b) | 3,873,921 | ||||||
12,841 | Hexcel Corp. | 581,312 | ||||||
107,132 | Honeywell International, Inc. | 12,241,974 | ||||||
13,251 | Hub Group, Inc., Class A(b) | 510,429 | ||||||
10,133 | Hubbell, Inc. | 1,071,666 | ||||||
7,654 | Huntington Ingalls Industries, Inc. | 1,108,070 | ||||||
9,370 | IDEX Corp. | 767,403 | ||||||
7,087 | IHS, Inc., Class A(b) | 872,977 | ||||||
52,476 | Illinois Tool Works, Inc. | 5,484,792 | ||||||
52,131 | Ingersoll-Rand PLC | 3,416,666 | ||||||
14,751 | ITT Corp. | 565,996 | ||||||
11,430 | J.B. Hunt Transport Services, Inc. | 947,318 | ||||||
60,406 | Jacobs Engineering Group, Inc.(b) | 2,692,899 | ||||||
107,302 | Joy Global, Inc.(c) | 2,285,533 | ||||||
15,028 | Kansas City Southern | 1,423,903 | ||||||
21,420 | KAR Auction Services, Inc. | 805,392 | ||||||
80,230 | KBR, Inc. | 1,248,379 | ||||||
38,221 | Kennametal, Inc. | 893,607 | ||||||
16,052 | Kirby Corp.(b) | 1,024,439 | ||||||
26,179 | KLX, Inc.(b) | 882,756 | ||||||
25,409 | L-3 Communications Holdings, Inc. | 3,342,046 | ||||||
10,035 | Lincoln Electric Holdings, Inc. | 628,893 | ||||||
50,131 | Lockheed Martin Corp. | 11,649,442 | ||||||
36,470 | Manitowoc Co., Inc. (The)(c) | 207,879 | ||||||
23,515 | Manitowoc Foodservice, Inc.(b) | 352,960 | ||||||
31,184 | ManpowerGroup, Inc. | 2,402,104 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Industrials (continued) | ||||||||
40,022 | Masco Corp. | $ | 1,229,076 | |||||
41,040 | MasTec, Inc.(b) | 929,966 | ||||||
72,243 | Meritor, Inc.(b) | 614,065 | ||||||
12,892 | Moog, Inc., Class A(b) | 629,903 | ||||||
103,812 | MRC Global, Inc.(b) | 1,451,292 | ||||||
8,836 | MSC Industrial Direct Co., Inc., Class A | 684,790 | ||||||
98,249 | Navistar International Corp.(b)(c) | 1,482,577 | ||||||
41,286 | Nielsen Holdings PLC | 2,152,652 | ||||||
82,410 | Norfolk Southern Corp. | 7,425,965 | ||||||
32,334 | Northrop Grumman Corp. | 6,669,211 | ||||||
57,426 | NOW, Inc.(b)(c) | 1,037,114 | ||||||
11,442 | Old Dominion Freight Line, Inc.(b) | 755,744 | ||||||
7,176 | Orbital ATK, Inc. | 624,312 | ||||||
33,922 | Oshkosh Corp. | 1,657,090 | ||||||
25,712 | Owens Corning | 1,184,552 | ||||||
89,517 | PACCAR, Inc. | 5,273,446 | ||||||
32,316 | Parker-Hannifin Corp. | 3,749,302 | ||||||
33,419 | Pentair PLC (United Kingdom) | 1,940,976 | ||||||
87,058 | Pitney Bowes, Inc. | 1,825,606 | ||||||
89,087 | Quanta Services, Inc.(b) | 2,113,144 | ||||||
138,518 | R.R. Donnelley & Sons Co. | 2,410,213 | ||||||
53,170 | Raytheon Co. | 6,718,030 | ||||||
12,463 | Regal Beloit Corp. | 802,866 | ||||||
66,341 | Republic Services, Inc. | 3,122,671 | ||||||
28,495 | Rexnord Corp.(b) | 621,191 | ||||||
21,025 | Robert Half International, Inc. | 805,468 | ||||||
19,623 | Rockwell Automation, Inc. | 2,226,622 | ||||||
17,835 | Rockwell Collins, Inc. | 1,572,869 | ||||||
8,335 | Roper Technologies, Inc. | 1,467,710 | ||||||
25,236 | Rush Enterprises, Inc., Class A(b) | 496,897 | ||||||
27,015 | Ryder System, Inc. | 1,861,874 | ||||||
20,694 | Sensata Technologies Holding NV(b) | 779,543 | ||||||
6,912 | Snap-on, Inc. | 1,100,943 | ||||||
19,950 | Southwest Airlines Co. | 889,970 | ||||||
22,629 | Spirit AeroSystems Holdings, Inc., Class A(b) | 1,066,957 | ||||||
45,327 | SPX FLOW, Inc.(b) | 1,357,997 | ||||||
32,877 | Stanley Black & Decker, Inc. | 3,679,594 | ||||||
7,483 | Stericycle, Inc.(b) | 715,075 | ||||||
31,176 | Swift Transportation Co., Class A(b) | 518,145 | ||||||
44,734 | TAL International Group, Inc.(b) | 764,951 | ||||||
7,484 | Teledyne Technologies, Inc.(b) | 695,638 | ||||||
41,386 | Terex Corp. | 988,712 | ||||||
63,311 | Textron, Inc. | 2,448,869 | ||||||
22,862 | Timken Co. (The) | 814,573 | ||||||
8,191 | TransDigm Group, Inc.(b) | 1,866,483 | ||||||
59,363 | Trinity Industries, Inc. | 1,158,172 | ||||||
28,209 | Triumph Group, Inc. | 1,020,602 | ||||||
69,660 | Tyco International PLC | 2,683,303 | ||||||
146,172 | Union Pacific Corp. | 12,750,584 | ||||||
26,723 | United Continental Holdings, Inc.(b) | 1,224,181 | ||||||
116,407 | United Parcel Service, Inc., Class B | 12,230,883 | ||||||
30,272 | United Rentals, Inc.(b) | 2,026,105 | ||||||
189,937 | United Technologies Corp. | 19,823,725 | ||||||
5,171 | Valmont Industries, Inc. | 725,905 | ||||||
8,417 | Verisk Analytics, Inc.(b) | 652,991 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 24 |
|
PowerShares FTSE RAFI US 1000 Portfolio (PRF) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Industrials (continued) | ||||||||
9,212 | W.W. Grainger, Inc.(c) | $ | 2,160,398 | |||||
7,214 | WABCO Holdings, Inc.(b) | 809,122 | ||||||
7,383 | Wabtec Corp. | 612,272 | ||||||
12,357 | Waste Connections, Inc. | 831,379 | ||||||
93,620 | Waste Management, Inc. | 5,503,920 | ||||||
4,666 | Watsco, Inc. | 627,437 | ||||||
25,799 | WESCO International, Inc.(b) | 1,516,723 | ||||||
26,132 | Xylem, Inc. | 1,091,795 | ||||||
66,432 | YRC Worldwide, Inc.(b) | 611,174 | ||||||
|
| |||||||
435,471,962 | ||||||||
|
| |||||||
Information Technology—12.0% | ||||||||
77,960 | Accenture PLC, Class A | 8,803,243 | ||||||
76,029 | Activision Blizzard, Inc. | 2,620,720 | ||||||
27,268 | Adobe Systems, Inc.(b) | 2,569,191 | ||||||
316,707 | Advanced Micro Devices, Inc.(b)(c) | 1,124,310 | ||||||
17,396 | Akamai Technologies, Inc.(b) | 887,022 | ||||||
7,289 | Alliance Data Systems Corp.(b) | 1,481,927 | ||||||
19,520 | Alphabet, Inc., Class A(b) | 13,817,818 | ||||||
19,584 | Alphabet, Inc., Class C(b) | 13,571,908 | ||||||
18,661 | Amdocs Ltd. | 1,055,093 | ||||||
108,659 | Amkor Technology, Inc.(b) | 620,443 | ||||||
26,113 | Amphenol Corp., Class A | 1,457,889 | ||||||
43,742 | Analog Devices, Inc. | 2,463,549 | ||||||
20,724 | Anixter International, Inc.(b) | 1,291,105 | ||||||
7,258 | ANSYS, Inc.(b) | 658,809 | ||||||
635,026 | Apple, Inc. | 59,527,337 | ||||||
198,869 | Applied Materials, Inc. | 4,070,848 | ||||||
61,456 | Arrow Electronics, Inc.(b) | 3,816,418 | ||||||
17,055 | Autodesk, Inc.(b) | 1,020,230 | ||||||
50,712 | Automatic Data Processing, Inc. | 4,484,969 | ||||||
75,004 | Avnet, Inc. | 3,084,164 | ||||||
25,055 | Benchmark Electronics, Inc.(b) | 486,568 | ||||||
49,359 | Booz Allen Hamilton Holding Corp. | 1,360,828 | ||||||
10,793 | Broadcom Ltd. (Singapore) | 1,573,080 | ||||||
13,231 | Broadridge Financial Solutions, Inc. | 791,743 | ||||||
59,782 | Brocade Communications Systems, Inc. | 574,505 | ||||||
71,568 | CA, Inc. | 2,122,707 | ||||||
7,875 | CACI International, Inc., Class A(b) | 757,181 | ||||||
23,977 | Cadence Design Systems, Inc.(b) | 556,027 | ||||||
17,226 | CDK Global, Inc. | 819,441 | ||||||
29,805 | CDW Corp. | 1,147,492 | ||||||
10,623 | Check Point Software Technologies Ltd. (Israel)(b)(c) | 880,328 | ||||||
822,019 | Cisco Systems, Inc. | 22,597,302 | ||||||
14,474 | Citrix Systems, Inc.(b) | 1,184,552 | ||||||
54,076 | Cognizant Technology Solutions Corp., Class A(b) | 3,156,416 | ||||||
29,453 | CommScope Holding, Inc.(b) | 895,666 | ||||||
46,129 | Computer Sciences Corp. | 1,528,254 | ||||||
298,465 | Corning, Inc. | 5,572,341 | ||||||
22,949 | Cree, Inc.(b)(c) | 562,480 | ||||||
38,059 | CSRA, Inc. | 988,012 | ||||||
23,937 | Diebold, Inc. | 628,825 | ||||||
5,786 | DST Systems, Inc. | 698,254 | ||||||
114,613 | eBay, Inc.(b) | 2,799,996 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Information Technology (continued) | ||||||||
16,436 | EchoStar Corp., Class A(b) | $ | 672,561 | |||||
17,699 | Electronic Arts, Inc.(b) | 1,094,683 | ||||||
313,025 | EMC Corp. | 8,173,083 | ||||||
6,761 | F5 Networks, Inc.(b) | 708,215 | ||||||
60,608 | Facebook, Inc., Class A(b) | 7,126,289 | ||||||
25,226 | Fairchild Semiconductor International, Inc.(b) | 504,520 | ||||||
43,941 | Fidelity National Information Services, Inc. | 2,891,318 | ||||||
16,241 | First Solar, Inc.(b) | 906,897 | ||||||
20,068 | Fiserv, Inc.(b) | 1,961,045 | ||||||
5,013 | FleetCor Technologies, Inc.(b) | 775,411 | ||||||
366,434 | Flextronics International Ltd.(b) | 4,452,173 | ||||||
19,993 | FLIR Systems, Inc. | 603,988 | ||||||
21,658 | Genpact Ltd.(b) | 604,042 | ||||||
21,163 | Harris Corp. | 1,693,252 | ||||||
953,403 | Hewlett Packard Enterprise Co. | 15,883,694 | ||||||
872,132 | HP, Inc. | 10,701,060 | ||||||
14,703 | IAC/InterActiveCorp. | 681,337 | ||||||
132,166 | Ingram Micro, Inc., Class A | 4,619,202 | ||||||
1,167,896 | Intel Corp. | 35,363,891 | ||||||
241,814 | International Business Machines Corp. | 35,290,335 | ||||||
16,149 | Intuit, Inc. | 1,629,273 | ||||||
93,566 | Jabil Circuit, Inc. | 1,624,306 | ||||||
51,892 | Juniper Networks, Inc. | 1,214,273 | ||||||
36,593 | Keysight Technologies, Inc.(b) | 954,345 | ||||||
26,170 | KLA-Tencor Corp. | 1,830,330 | ||||||
17,015 | Lam Research Corp. | 1,299,946 | ||||||
18,293 | Leidos Holdings, Inc. | 907,516 | ||||||
28,604 | Lexmark International, Inc., Class A | 1,104,114 | ||||||
29,021 | Linear Technology Corp. | 1,290,854 | ||||||
5,631 | LinkedIn Corp., Class A(b) | 705,621 | ||||||
136,666 | Marvell Technology Group Ltd. (Bermuda) | 1,363,927 | ||||||
41,600 | MasterCard, Inc., Class A | 4,034,784 | ||||||
48,080 | Maxim Integrated Products, Inc. | 1,717,418 | ||||||
33,903 | Microchip Technology, Inc. | 1,647,347 | ||||||
438,681 | Micron Technology, Inc.(b) | 4,715,821 | ||||||
873,711 | Microsoft Corp. | 43,571,968 | ||||||
26,864 | Motorola Solutions, Inc. | 2,019,904 | ||||||
56,672 | NCR Corp.(b) | 1,648,588 | ||||||
65,592 | NetApp, Inc. | 1,550,595 | ||||||
31,245 | Nuance Communications, Inc.(b) | 536,789 | ||||||
45,545 | NVIDIA Corp. | 1,618,214 | ||||||
14,743 | NXP Semiconductors NV (Netherlands)(b) | 1,257,283 | ||||||
105,561 | ON Semiconductor Corp.(b) | 999,663 | ||||||
457,719 | Oracle Corp. | 18,244,679 | ||||||
40,566 | Paychex, Inc. | 2,114,300 | ||||||
76,833 | PayPal Holdings, Inc.(b) | 3,010,317 | ||||||
31,916 | Qorvo, Inc.(b) | 1,437,177 | ||||||
291,754 | QUALCOMM, Inc. | 14,739,412 | ||||||
7,995 | Red Hat, Inc.(b) | 586,593 | ||||||
17,115 | salesforce.com, inc.(b) | 1,297,317 | ||||||
34,427 | SanDisk Corp. | 2,586,500 | ||||||
51,320 | Sanmina Corp.(b) | 1,213,718 | ||||||
13,141 | ScanSource, Inc.(b) | 534,576 | ||||||
10,784 | Science Applications International Corp. | 572,522 | ||||||
107,939 | Seagate Technology PLC | 2,349,832 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 25 |
|
PowerShares FTSE RAFI US 1000 Portfolio (PRF) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Information Technology (continued) | ||||||||
10,449 | Skyworks Solutions, Inc. | $ | 698,202 | |||||
179,565 | Symantec Corp. | 2,988,859 | ||||||
9,089 | SYNNEX Corp. | 750,479 | ||||||
20,697 | Synopsys, Inc.(b) | 983,521 | ||||||
72,597 | TE Connectivity Ltd. (Switzerland) | 4,318,069 | ||||||
42,755 | Tech Data Corp.(b) | 2,936,841 | ||||||
37,814 | Teradata Corp.(b) | 956,694 | ||||||
30,851 | Teradyne, Inc. | 583,392 | ||||||
135,422 | Texas Instruments, Inc. | 7,724,471 | ||||||
16,531 | Total System Services, Inc. | 845,395 | ||||||
34,880 | Trimble Navigation Ltd.(b) | 835,376 | ||||||
51,676 | Unisys Corp.(b)(c) | 398,422 | ||||||
10,002 | Vantiv, Inc., Class A(b) | 545,509 | ||||||
6,987 | VeriSign, Inc.(b)(c) | 603,677 | ||||||
97,449 | Visa, Inc., Class A | 7,526,961 | ||||||
51,052 | Vishay Intertechnology, Inc. | 620,792 | ||||||
72,613 | Western Digital Corp. | 2,967,330 | ||||||
109,196 | Western Union Co. (The) | 2,183,920 | ||||||
530,170 | Xerox Corp. | 5,089,632 | ||||||
32,106 | Xilinx, Inc. | 1,383,126 | ||||||
231,106 | Yahoo!, Inc.(b) | 8,458,480 | ||||||
|
| |||||||
496,144,957 | ||||||||
|
| |||||||
Materials—4.4% | ||||||||
32,535 | Air Products & Chemicals, Inc. | 4,746,531 | ||||||
7,619 | Airgas, Inc. | 1,085,250 | ||||||
227,163 | AK Steel Holding Corp.(b)(c) | 1,063,123 | ||||||
15,340 | Albemarle Corp. | 1,014,894 | ||||||
510,263 | Alcoa, Inc. | 5,699,638 | ||||||
86,312 | Allegheny Technologies, Inc.(c) | 1,410,338 | ||||||
8,938 | AptarGroup, Inc. | 679,288 | ||||||
15,975 | Ashland, Inc. | 1,782,810 | ||||||
19,053 | Avery Dennison Corp. | 1,383,438 | ||||||
25,659 | Axalta Coating Systems Ltd.(b) | 730,512 | ||||||
40,583 | Axiall Corp. | 955,730 | ||||||
22,616 | Ball Corp. | 1,614,330 | ||||||
24,287 | Bemis Co., Inc. | 1,218,722 | ||||||
25,450 | Berry Plastics Group, Inc.(b) | 916,709 | ||||||
18,017 | Cabot Corp. | 879,049 | ||||||
16,427 | Carpenter Technology Corp. | 581,680 | ||||||
25,611 | Celanese Corp., Series A | 1,810,698 | ||||||
76,885 | CF Industries Holdings, Inc. | 2,542,587 | ||||||
367,603 | Chemours Co. (The) | 3,352,539 | �� | |||||
24,946 | Chemtura Corp.(b) | 694,746 | ||||||
421,623 | Cliffs Natural Resources, Inc.(b)(c) | 2,221,953 | ||||||
63,738 | Commercial Metals Co. | 1,142,185 | ||||||
7,107 | Compass Minerals International, Inc. | 532,741 | ||||||
109,735 | Constellium NV, Class A (Netherlands)(b) | 639,755 | ||||||
34,207 | Crown Holdings, Inc.(b) | 1,811,603 | ||||||
38,031 | Domtar Corp. | 1,469,518 | ||||||
290,385 | Dow Chemical Co. (The) | 15,277,155 | ||||||
182,887 | E.I. du Pont de Nemours & Co. | 12,054,082 | ||||||
35,432 | Eastman Chemical Co. | 2,706,296 | ||||||
28,007 | Ecolab, Inc. | 3,220,245 | ||||||
25,894 | FMC Corp. | 1,120,174 | ||||||
1,516,466 | Freeport-McMoRan, Inc.(c) | 21,230,524 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Materials (continued) | ||||||||
79,274 | Graphic Packaging Holding Co. | $ | 1,052,759 | |||||
133,477 | Huntsman Corp. | 2,100,928 | ||||||
9,578 | International Flavors & Fragrances, Inc. | 1,144,284 | ||||||
158,561 | International Paper Co. | 6,860,934 | ||||||
125,387 | LyondellBasell Industries NV, Class A | 10,365,743 | ||||||
7,996 | Martin Marietta Materials, Inc. | 1,353,163 | ||||||
65,954 | Monsanto Co. | 6,178,571 | ||||||
167,141 | Mosaic Co. (The) | 4,678,277 | ||||||
1,678 | NewMarket Corp. | 681,369 | ||||||
177,745 | Newmont Mining Corp. | 6,215,743 | ||||||
117,285 | Nucor Corp. | 5,838,447 | ||||||
39,431 | Olin Corp. | 859,201 | ||||||
112,919 | Owens-Illinois, Inc.(b) | 2,084,485 | ||||||
23,875 | Packaging Corp. of America | 1,549,010 | ||||||
19,846 | PolyOne Corp. | 714,059 | ||||||
39,114 | PPG Industries, Inc. | 4,317,794 | ||||||
50,146 | Praxair, Inc. | 5,890,149 | ||||||
26,708 | Reliance Steel & Aluminum Co. | 1,975,591 | ||||||
26,553 | RPM International, Inc. | 1,341,723 | ||||||
25,504 | Sealed Air Corp. | 1,207,869 | ||||||
8,402 | Sensient Technologies Corp. | 565,035 | ||||||
6,273 | Sherwin-Williams Co. (The) | 1,802,296 | ||||||
9,527 | Silgan Holdings, Inc. | 483,400 | ||||||
25,796 | Sonoco Products Co. | 1,209,574 | ||||||
58,561 | Southern Copper Corp. (Peru)(c) | 1,737,505 | ||||||
79,327 | Steel Dynamics, Inc. | 1,999,834 | ||||||
261,820 | United States Steel Corp.(c) | 5,003,380 | ||||||
11,430 | Valspar Corp. (The) | 1,219,467 | ||||||
11,798 | Vulcan Materials Co. | 1,269,819 | ||||||
9,972 | W.R. Grace & Co.(b) | 764,653 | ||||||
55,144 | WestRock Co. | 2,307,776 | ||||||
|
| |||||||
182,361,681 | ||||||||
|
| |||||||
Telecommunication Services—3.4% | ||||||||
1,832,662 | AT&T, Inc. | 71,143,939 | ||||||
335,392 | CenturyLink, Inc. | 10,380,382 | ||||||
729,384 | Frontier Communications Corp.(c) | 4,055,375 | ||||||
68,326 | Leap Wireless Corp.(b) | 172,181 | ||||||
40,372 | Level 3 Communications, Inc.(b) | 2,109,841 | ||||||
54,565 | Telephone & Data Systems, Inc. | 1,613,487 | ||||||
52,549 | T-Mobile US, Inc.(b) | 2,064,125 | ||||||
911,805 | Verizon Communications, Inc. | 46,447,347 | ||||||
139,729 | Windstream Holdings, Inc.(c) | 1,212,848 | ||||||
|
| |||||||
139,199,525 | ||||||||
|
| |||||||
Utilities—4.7% | ||||||||
438,248 | AES Corp. (The) | 4,890,848 | ||||||
25,809 | AGL Resources, Inc. | 1,699,781 | ||||||
10,804 | ALLETE, Inc. | 607,077 | ||||||
25,371 | Alliant Energy Corp. | 1,789,163 | ||||||
73,826 | Ameren Corp. | 3,543,648 | ||||||
133,500 | American Electric Power Co., Inc. | 8,477,250 | ||||||
30,205 | American Water Works Co., Inc. | 2,197,716 | ||||||
18,810 | Aqua America, Inc. | 595,525 | ||||||
20,722 | Atmos Energy Corp. | 1,503,381 | ||||||
17,824 | Avista Corp. | 714,208 | ||||||
11,223 | Black Hills Corp.(c) | 680,002 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 26 |
|
PowerShares FTSE RAFI US 1000 Portfolio (PRF) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Utilities (continued) | ||||||||
163,646 | Calpine Corp.(b) | $ | 2,582,334 | |||||
175,544 | CenterPoint Energy, Inc. | 3,765,419 | ||||||
62,543 | CMS Energy Corp. | 2,544,249 | ||||||
86,560 | Consolidated Edison, Inc. | 6,457,376 | ||||||
119,047 | Dominion Resources, Inc. | 8,508,289 | ||||||
49,538 | DTE Energy Co. | 4,416,808 | ||||||
198,865 | Duke Energy Corp. | 15,666,585 | ||||||
100,604 | Dynegy, Inc.(b) | 1,773,648 | ||||||
84,498 | Edison International | 5,974,854 | ||||||
76,618 | Entergy Corp. | 5,760,141 | ||||||
65,322 | Eversource Energy | 3,686,774 | ||||||
382,817 | Exelon Corp. | 13,433,048 | ||||||
203,637 | FirstEnergy Corp. | 6,636,530 | ||||||
46,001 | Great Plains Energy, Inc. | 1,436,611 | ||||||
34,901 | Hawaiian Electric Industries, Inc. | 1,140,914 | ||||||
9,893 | IDACORP, Inc. | 719,518 | ||||||
15,661 | ITC Holdings Corp. | 690,180 | ||||||
81,604 | MDU Resources Group, Inc. | 1,636,976 | ||||||
22,604 | National Fuel Gas Co. | 1,254,522 | ||||||
18,555 | New Jersey Resources Corp. | 662,042 | ||||||
82,721 | NextEra Energy, Inc. | 9,726,335 | ||||||
51,167 | NiSource, Inc. | 1,162,003 | ||||||
9,676 | NorthWestern Corp. | 549,984 | ||||||
308,675 | NRG Energy, Inc. | 4,660,992 | ||||||
59,005 | OGE Energy Corp. | 1,745,958 | ||||||
10,160 | ONE Gas, Inc. | 594,055 | ||||||
134,094 | PG&E Corp. | 7,804,271 | ||||||
11,184 | Piedmont Natural Gas Co., Inc. | 668,803 | ||||||
31,082 | Pinnacle West Capital Corp. | 2,258,107 | ||||||
21,789 | PNM Resources, Inc. | 690,275 | ||||||
22,907 | Portland General Electric Co. | 909,866 | ||||||
177,834 | PPL Corp. | 6,693,672 | ||||||
146,416 | Public Service Enterprise Group, Inc. | 6,754,170 | ||||||
34,284 | Questar Corp. | 859,500 | ||||||
32,694 | SCANA Corp. | 2,245,751 | ||||||
51,772 | Sempra Energy | 5,350,636 | ||||||
240,459 | Southern Co. (The) | 12,046,996 | ||||||
12,479 | Southwest Gas Corp. | 810,012 | ||||||
7,350 | Spire, Inc. | 470,106 | ||||||
55,505 | TECO Energy, Inc. | 1,541,374 | ||||||
46,544 | UGI Corp. | 1,872,930 | ||||||
22,301 | Vectren Corp. | 1,089,404 | ||||||
41,214 | WEC Energy Group, Inc. | 2,399,067 | ||||||
32,220 | Westar Energy, Inc. | 1,662,874 | ||||||
11,212 | WGL Holdings, Inc. | 761,183 | ||||||
127,680 | Xcel Energy, Inc. | 5,111,030 | ||||||
|
| |||||||
195,884,771 | ||||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) | 4,141,466,407 | |||||||
|
|
Number of Shares | Value | |||||||
Investments Purchased with Cash Collateral from Securities on Loan |
| |||||||
Money Market Fund—2.2% | ||||||||
91,230,757 | Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(e)(f) (Cost $91,230,757) | $ | 91,230,757 | |||||
|
| |||||||
Total Investments (Cost $3,961,990,798)—102.2% | 4,232,697,164 | |||||||
Other assets less liabilities—(2.2)% | (90,296,628 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 4,142,400,536 | ||||||
|
|
Investment Abbreviations:
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | Non-income producing security. |
(c) | All or a portion of this security was out on loan at April 30, 2016. |
(d) | Affiliated company. The Fund’s Adviser and Invesco Mortgage Capital, Inc. REIT are wholly-owned subsidiaries of Invesco Ltd. and therefore, Invesco Ltd. and Invesco Mortgage Capital, Inc. REIT are considered to be affiliated. See Note 4. |
(e) | The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
(f) | 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 accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 27 |
|
Schedule of Investments(a)
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.0% | ||||||||
Consumer Discretionary—15.6% | ||||||||
25,672 | 1-800-FLOWERS.COM, Inc., Class A(b) | $ | 201,525 | |||||
66,526 | Aaron’s, Inc. | 1,743,646 | ||||||
22,312 | AMC Networks, Inc., Class A(b) | 1,455,412 | ||||||
26,009 | American Public Education, Inc.(b) | 602,368 | ||||||
7,328 | America’s Car-Mart, Inc.(b)(c) | 194,705 | ||||||
224,677 | Arcos Dorados Holdings, Inc., Class A (Argentina)(b) | 932,410 | ||||||
22,176 | Arctic Cat, Inc. | 368,787 | ||||||
56,853 | Ascent Capital Group, Inc., Series A(b) | 856,775 | ||||||
108,004 | Barnes & Noble Education, Inc.(b) | 1,010,917 | ||||||
177,309 | Barnes & Noble, Inc. | 2,083,381 | ||||||
7,891 | Bassett Furniture Industries, Inc. | 232,863 | ||||||
79,375 | Beazer Homes USA, Inc.(b) | 652,463 | ||||||
85,238 | Belmond Ltd., Class A (United Kingdom)(b) | 780,780 | ||||||
32,684 | Big 5 Sporting Goods Corp. | 395,150 | ||||||
1,246 | Biglari Holdings, Inc.(b) | 465,929 | ||||||
12,629 | BJ’s Restaurants, Inc.(b) | 563,253 | ||||||
32,072 | Black Diamond, Inc.(b) | 136,306 | ||||||
7,985 | Blue Nile, Inc. | 205,853 | ||||||
28,936 | Bob Evans Farms, Inc. | 1,317,745 | ||||||
144,643 | Bon-Ton Stores, Inc. (The)(c) | 337,018 | ||||||
14,494 | Boot Barn Holdings, Inc.(b)(c) | 118,851 | ||||||
79,482 | Boyd Gaming Corp.(b) | 1,481,544 | ||||||
34,548 | Bravo Brio Restaurant Group, Inc.(b) | 254,619 | ||||||
37,098 | Bridgepoint Education, Inc.(b) | 353,915 | ||||||
14,484 | Bright Horizons Family Solutions, Inc.(b) | 950,440 | ||||||
44,727 | Buckle, Inc. (The)(c) | 1,294,399 | ||||||
7,448 | Buffalo Wild Wings, Inc.(b) | 995,500 | ||||||
14,590 | Build-A-Bear Workshop, Inc.(b) | 192,150 | ||||||
3,116 | Cable One, Inc. | 1,430,119 | ||||||
43,780 | CalAtlantic Group, Inc. | 1,417,159 | ||||||
51,326 | Caleres, Inc. | 1,293,928 | ||||||
50,245 | Callaway Golf Co. | 469,288 | ||||||
8,924 | Capella Education Co. | 493,586 | ||||||
299,178 | Career Education Corp.(b) | 1,597,611 | ||||||
28,888 | Carmike Cinemas, Inc.(b) | 866,351 | ||||||
11,472 | Carriage Services, Inc. | 280,261 | ||||||
28,492 | Carrols Restaurant Group, Inc.(b) | 396,324 | ||||||
16,892 | Carter’s, Inc. | 1,801,870 | ||||||
22,945 | Cato Corp. (The), Class A | 839,558 | ||||||
5,026 | Cavco Industries, Inc.(b) | 440,730 | ||||||
97,345 | Central European Media Enterprises Ltd., Class A (Bermuda)(b)(c) | 258,938 | ||||||
17,512 | Century Communities, Inc.(b) | 301,907 | ||||||
24,706 | Cheesecake Factory, Inc. (The) | 1,260,253 | ||||||
44,954 | Chegg, Inc.(b)(c) | 204,091 | ||||||
13,092 | Children’s Place, Inc. (The) | 1,019,998 | ||||||
22,128 | Choice Hotels International, Inc. | 1,121,004 | ||||||
144,024 | Christopher & Banks Corp.(b) | 374,462 | ||||||
5,085 | Churchill Downs, Inc. | 682,305 | ||||||
5,524 | Chuy’s Holdings, Inc.(b) | 168,703 | ||||||
23,494 | Citi Trends, Inc. | 421,952 | ||||||
126,884 | Clear Channel Outdoor Holdings, Inc., Class A | 648,377 | ||||||
57,822 | ClubCorp Holdings, Inc. | 771,924 | ||||||
11,040 | Columbia Sportswear Co. | 646,613 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Consumer Discretionary (continued) | ||||||||
37,348 | Conn’s, Inc.(b)(c) | $ | 513,162 | |||||
24,380 | Container Store Group, Inc. (The)(b)(c) | 173,098 | ||||||
23,979 | Cooper-Standard Holding, Inc.(b) | 1,849,021 | ||||||
98,792 | Crocs, Inc.(b) | 824,913 | ||||||
12,402 | CSS Industries, Inc. | 346,760 | ||||||
225,868 | CTC Media, Inc. (Russia)(b) | 444,960 | ||||||
4,970 | Culp, Inc. | 130,413 | ||||||
526,872 | Cumulus Media, Inc., Class A(b) | 195,786 | ||||||
13,431 | Dave & Buster’s Entertainment, Inc.(b) | 519,780 | ||||||
18,609 | Del Frisco’s Restaurant Group, Inc.(b) | 296,441 | ||||||
38,143 | Denny’s Corp.(b) | 377,234 | ||||||
41,770 | Destination Maternity Corp.(c) | 291,137 | ||||||
20,683 | Diamond Resorts International, Inc.(b)(c) | 438,686 | ||||||
12,206 | DineEquity, Inc. | 1,049,716 | ||||||
13,144 | Domino’s Pizza, Inc. | 1,588,847 | ||||||
10,130 | Dorman Products, Inc.(b) | 544,893 | ||||||
37,987 | DreamWorks Animation SKG, Inc., Class A(b) | 1,516,441 | ||||||
15,377 | Drew Industries, Inc. | 996,891 | ||||||
33,874 | Dunkin’ Brands Group, Inc. | 1,575,141 | ||||||
27,847 | E.W. Scripps Co. (The), Class A(b) | 422,717 | ||||||
16,980 | Eldorado Resorts, Inc.(b) | 222,608 | ||||||
27,760 | Entravision Communications Corp., Class A | 220,692 | ||||||
53,619 | Eros International PLC, Class A(b)(c) | 717,422 | ||||||
18,634 | Ethan Allen Interiors, Inc. | 634,301 | ||||||
88,540 | Express, Inc.(b) | 1,609,657 | ||||||
47,783 | Extended Stay America, Inc. | 747,804 | ||||||
134,307 | Federal-Mogul Holdings Corp.(b) | 1,240,997 | ||||||
13,282 | Fiesta Restaurant Group, Inc.(b) | 426,485 | ||||||
60,660 | Finish Line, Inc. (The), Class A | 1,198,035 | ||||||
19,745 | Five Below, Inc.(b) | 823,367 | ||||||
6,191 | Flexsteel Industries, Inc. | 253,150 | ||||||
24,000 | Francesca’s Holdings Corp.(b) | 398,400 | ||||||
59,167 | Fred’s, Inc., Class A | 867,980 | ||||||
21,895 | FTD Cos., Inc.(b) | 608,900 | ||||||
31,657 | Fuel Systems Solutions, Inc.(b) | 167,782 | ||||||
12,437 | Gentherm, Inc.(b) | 456,935 | ||||||
22,365 | G-III Apparel Group Ltd.(b) | 1,012,016 | ||||||
27,911 | Global Eagle Entertainment, Inc.(b) | 223,567 | ||||||
42,263 | GoPro, Inc., Class A(b)(c) | 534,204 | ||||||
20,428 | Grand Canyon Education, Inc.(b) | 893,316 | ||||||
52,748 | Gray Television, Inc.(b) | 677,812 | ||||||
207,356 | Groupon, Inc., Class A(b) | 750,629 | ||||||
146,560 | Harte-Hanks, Inc. | 266,739 | ||||||
25,078 | Haverty Furniture Cos., Inc. | 468,206 | ||||||
14,717 | Helen of Troy Ltd.(b) | 1,464,783 | ||||||
80,763 | hhgregg, Inc.(b)(c) | 157,488 | ||||||
23,585 | Hibbett Sports, Inc.(b) | 851,419 | ||||||
6,523 | Hooker Furniture Corp. | 161,770 | ||||||
30,326 | Horizon Global Corp.(b) | 372,100 | ||||||
77,293 | Houghton Mifflin Harcourt Co.(b) | 1,585,279 | ||||||
313,354 | Hovnanian Enterprises, Inc., Class A(b)(c) | 523,301 | ||||||
30,783 | HSN, Inc. | 1,632,423 | ||||||
25,657 | Hyatt Hotels Corp., Class A(b) | 1,228,457 | ||||||
147,183 | Iconix Brand Group, Inc.(b)(c) | 1,248,112 | ||||||
17,044 | IMAX Corp.(b) | 545,408 | ||||||
6,343 | Installed Building Products, Inc.(b) | 168,597 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 28 |
|
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Consumer Discretionary (continued) | ||||||||
19,132 | International Speedway Corp., Class A | $ | 640,731 | |||||
43,025 | Interval Leisure Group, Inc.(c) | 607,513 | ||||||
19,105 | Intrawest Resorts Holdings, Inc.(b) | 165,067 | ||||||
16,645 | iRobot Corp.(b)(c) | 622,190 | ||||||
25,607 | Isle of Capri Casinos, Inc.(b) | 381,544 | ||||||
127,543 | ITT Educational Services, Inc.(b)(c) | 274,217 | ||||||
14,820 | J. Alexander’s Holdings, Inc.(b) | 152,646 | ||||||
15,921 | Jack in the Box, Inc. | 1,075,464 | ||||||
43,368 | JAKKS Pacific, Inc.(b)(c) | 325,260 | ||||||
37,854 | John Wiley & Sons, Inc., Class A | 1,877,180 | ||||||
7,026 | Johnson Outdoors, Inc., Class A | 169,537 | ||||||
68,576 | K12, Inc.(b) | 842,799 | ||||||
16,238 | Kandi Technologies Group, Inc. (China)(b)(c) | 116,751 | ||||||
38,741 | Kate Spade & Co.(b) | 996,806 | ||||||
115,330 | KB Home(c) | 1,565,028 | ||||||
18,874 | Kirkland’s, Inc. | 309,911 | ||||||
24,608 | Krispy Kreme Doughnuts, Inc.(b) | 428,425 | ||||||
97,379 | La Quinta Holdings, Inc.(b) | 1,243,530 | ||||||
26,987 | Lands’ End, Inc.(b)(c) | 656,594 | ||||||
33,442 | La-Z-Boy, Inc. | 865,145 | ||||||
9,056 | LGI Homes, Inc.(b)(c) | 253,659 | ||||||
9,664 | Liberty Broadband Corp., Class A(b) | 553,940 | ||||||
25,597 | Liberty Broadband Corp., Class C(b) | 1,465,428 | ||||||
58,953 | Liberty TripAdvisor Holdings, Inc., Series A(b) | 1,300,503 | ||||||
4,827 | Liberty Ventures, Series A(b) | 193,080 | ||||||
30,533 | LifeLock, Inc.(b) | 355,404 | ||||||
16,479 | Lifetime Brands, Inc. | 284,592 | ||||||
50,115 | Lions Gate Entertainment Corp. | 1,112,553 | ||||||
16,617 | Lithia Motors, Inc., Class A | 1,379,543 | ||||||
20,373 | Loral Space & Communications, Inc.(b) | 747,282 | ||||||
24,861 | Lululemon Athletica, Inc.(b)(c) | 1,629,639 | ||||||
64,987 | Lumber Liquidators Holdings, Inc.(b)(c) | 968,956 | ||||||
40,730 | M/I Homes, Inc.(b) | 818,673 | ||||||
20,856 | Marcus Corp. (The) | 403,564 | ||||||
21,241 | MarineMax, Inc.(b) | 403,791 | ||||||
12,997 | Marriott Vacations Worldwide Corp. | 814,132 | ||||||
12,735 | Mattress Firm Holding Corp.(b)(c) | 496,920 | ||||||
144,033 | McClatchy Co. (The), Class A(b) | 159,877 | ||||||
53,253 | MDC Holdings, Inc. | 1,310,556 | ||||||
24,513 | MDC Partners, Inc., Class A(c) | 496,143 | ||||||
63,766 | Media General, Inc.(b) | 1,105,065 | ||||||
36,567 | Meredith Corp. | 1,876,253 | ||||||
43,566 | Meritage Homes Corp.(b) | 1,482,551 | ||||||
25,587 | Metaldyne Performance Group, Inc. | 407,601 | ||||||
55,822 | Michaels Cos., Inc. (The)(b) | 1,587,019 | ||||||
73,477 | Modine Manufacturing Co.(b) | 794,286 | ||||||
7,028 | Monarch Casino & Resort, Inc.(b) | 133,532 | ||||||
10,823 | Monro Muffler Brake, Inc. | 749,168 | ||||||
8,395 | Motorcar Parts of America, Inc.(b) | 269,228 | ||||||
14,753 | Movado Group, Inc. | 416,182 | ||||||
33,644 | MSG Networks, Inc., Class A(b) | 574,976 | ||||||
10,322 | NACCO Industries, Inc., Class A | 614,365 | ||||||
71,475 | National CineMedia, Inc. | 1,014,945 | ||||||
7,726 | Nautilus, Inc.(b) | 136,287 | ||||||
32,327 | New Media Investment Group, Inc. | 518,848 | ||||||
86,897 | New York Times Co. (The), Class A | 1,114,020 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Consumer Discretionary (continued) | ||||||||
11,606 | Nexstar Broadcasting Group, Inc., Class A(c) | $ | 595,736 | |||||
13,223 | Noodles & Co., Class A(b)(c) | 147,436 | ||||||
14,995 | Nutrisystem, Inc. | 330,190 | ||||||
24,168 | Overstock.com, Inc.(b) | 352,611 | ||||||
9,379 | Oxford Industries, Inc. | 622,953 | ||||||
10,560 | Papa John’s International, Inc. | 597,590 | ||||||
34,164 | Party City Holdco, Inc.(b) | 489,570 | ||||||
50,474 | Penn National Gaming, Inc.(b) | 814,146 | ||||||
27,965 | Perry Ellis International, Inc.(b) | 532,733 | ||||||
19,672 | PetMed Express, Inc.(c) | 359,998 | ||||||
233,693 | Pier 1 Imports, Inc. | 1,610,145 | ||||||
52,149 | Pinnacle Entertainment, Inc.(b) | 575,725 | ||||||
15,187 | Pool Corp. | 1,327,496 | ||||||
3,116 | Popeyes Louisiana Kitchen, Inc.(b) | 167,516 | ||||||
16,084 | Potbelly Corp.(b)(c) | 229,197 | ||||||
23,187 | Reading International, Inc., Class A(b) | 300,735 | ||||||
9,809 | Red Robin Gourmet Burgers, Inc.(b) | 636,212 | ||||||
71,195 | Regis Corp.(b) | 973,236 | ||||||
15,516 | Restoration Hardware Holdings, Inc.(b)(c) | 671,377 | ||||||
18,783 | Rocky Brands, Inc. | 226,335 | ||||||
176,124 | Ruby Tuesday, Inc.(b) | 774,946 | ||||||
13,728 | Ruth’s Hospitality Group, Inc. | 218,001 | ||||||
37,904 | Scholastic Corp. | 1,378,948 | ||||||
99,600 | Scientific Games Corp., Class A(b) | 988,032 | ||||||
29,358 | Sears Hometown and Outlet Stores, Inc.(b) | 198,754 | ||||||
45,820 | Select Comfort Corp.(b) | 1,130,838 | ||||||
35,211 | Shiloh Industries, Inc.(b) | 227,111 | ||||||
14,298 | Shoe Carnival, Inc. | 366,458 | ||||||
21,781 | Shutterfly, Inc.(b) | 1,001,490 | ||||||
48,432 | Sinclair Broadcast Group, Inc., Class A | 1,553,214 | ||||||
54,507 | Sizmek, Inc.(b) | 144,444 | ||||||
42,679 | Skechers U.S.A., Inc., Class A(b) | 1,410,541 | ||||||
37,141 | Skullcandy, Inc.(b) | 126,651 | ||||||
24,459 | Smith & Wesson Holding Corp.(b) | 533,940 | ||||||
27,735 | SodaStream International Ltd. (Israel)(b)(c) | 380,524 | ||||||
17,946 | Sonic Corp. | 616,804 | ||||||
69,202 | Sotheby’s | 1,885,062 | ||||||
18,038 | Speedway Motorsports, Inc. | 316,026 | ||||||
14,761 | Sportsman’s Warehouse Holdings, Inc.(b) | 167,980 | ||||||
107,827 | Stage Stores, Inc.(c) | 793,607 | ||||||
15,929 | Standard Motor Products, Inc. | 565,639 | ||||||
27,240 | Starz, Class A(b) | 741,200 | ||||||
75,929 | Stein Mart, Inc. | 549,726 | ||||||
37,031 | Steven Madden Ltd.(b) | 1,296,455 | ||||||
33,740 | Stoneridge, Inc.(b) | 481,132 | ||||||
3,892 | Strattec Security Corp. | 205,887 | ||||||
17,026 | Strayer Education, Inc.(b) | 845,171 | ||||||
13,001 | Sturm Ruger & Co., Inc. | 832,454 | ||||||
30,801 | Superior Industries International, Inc. | 804,522 | ||||||
47,115 | Taylor Morrison Home Corp., Class A(b) | 678,456 | ||||||
29,137 | Tempur Sealy International, Inc.(b) | 1,767,742 | ||||||
4,044 | Tesla Motors, Inc.(b)(c) | 973,633 | ||||||
24,722 | Texas Roadhouse, Inc. | 1,006,680 | ||||||
9,740 | Tile Shop Holdings, Inc. (The)(b) | 173,762 | ||||||
21,947 | Tilly’s, Inc., Class A(b) | 138,047 | ||||||
26,226 | TopBuild Corp.(b) | 818,776 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 29 |
|
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Consumer Discretionary (continued) | ||||||||
49,050 | Tower International, Inc. | $ | 1,125,698 | |||||
105,161 | TRI Pointe Homes, Inc.(b) | 1,219,868 | ||||||
20,372 | TripAdvisor, Inc., Class A(b) | 1,315,827 | ||||||
73,039 | Tuesday Morning Corp.(b) | 633,979 | ||||||
31,124 | Tumi Holdings, Inc.(b) | 830,388 | ||||||
23,326 | Unifi, Inc.(b) | 600,878 | ||||||
8,276 | Universal Electronics, Inc.(b) | 549,609 | ||||||
72,138 | Universal Technical Institute, Inc. | 284,945 | ||||||
10,371 | Vail Resorts, Inc. | 1,344,496 | ||||||
19,055 | Vera Bradley, Inc.(b) | 334,225 | ||||||
28,047 | Vince Holding Corp.(b)(c) | 173,330 | ||||||
27,209 | Vitamin Shoppe, Inc.(b) | 744,710 | ||||||
66,778 | VOXX International Corp., Class A(b) | 299,833 | ||||||
3,861 | Wayfair, Inc., Class A(b) | 145,753 | ||||||
16,517 | WCI Communities, Inc.(b) | 263,942 | ||||||
52,647 | Weight Watchers International, Inc.(b)(c) | 681,779 | ||||||
18,497 | West Marine, Inc.(b) | 185,340 | ||||||
64,716 | William Lyon Homes, Class A(b)(c) | 912,496 | ||||||
23,616 | Winnebago Industries, Inc.(c) | 511,050 | ||||||
93,085 | Wolverine World Wide, Inc. | 1,763,961 | ||||||
23,103 | World Wrestling Entertainment, Inc., Class A(c) | 384,434 | ||||||
20,997 | ZAGG, Inc.(b) | 168,186 | ||||||
23,534 | Zumiez, Inc.(b)(c) | 394,901 | ||||||
|
| |||||||
172,624,311 | ||||||||
|
| |||||||
Consumer Staples—3.1% | ||||||||
42,262 | Adecoagro SA (Luxembourg)(b) | 450,513 | ||||||
20,683 | Alliance One International, Inc.(b) | 527,623 | ||||||
10,590 | Amira Nature Foods Ltd. (United Arab Emirates)(b)(c) | 76,777 | ||||||
31,668 | B&G Foods, Inc. | 1,305,038 | ||||||
17,243 | Blue Buffalo Pet Products, Inc.(b)(c) | 426,937 | ||||||
2,529 | Boston Beer Co., Inc. (The), Class A(b) | 394,726 | ||||||
7,471 | Calavo Growers, Inc. | 427,117 | ||||||
13,550 | Cal-Maine Foods, Inc.(c) | 687,798 | ||||||
18,358 | Central Garden & Pet Co.(b) | 298,685 | ||||||
65,962 | Central Garden & Pet Co., Class A(b) | 1,074,521 | ||||||
17,634 | Chefs’ Warehouse, Inc. (The)(b) | 339,807 | ||||||
2,203 | Coca-Cola Bottling Co. Consolidated | 351,092 | ||||||
18,309 | Coty, Inc., Class A(c) | 556,594 | ||||||
95,703 | Elizabeth Arden, Inc.(b)(c) | 979,042 | ||||||
39,004 | Fresh Del Monte Produce, Inc. | 1,687,313 | ||||||
15,622 | Ingles Markets, Inc., Class A | 563,486 | ||||||
11,556 | Inter Parfums, Inc. | 353,845 | ||||||
27,108 | Inventure Foods, Inc.(b) | 194,093 | ||||||
5,777 | J & J Snack Foods Corp. | 584,228 | ||||||
5,175 | John B. Sanfilippo & Son, Inc. | 286,333 | ||||||
12,035 | Lancaster Colony Corp. | 1,402,077 | ||||||
30,616 | Landec Corp.(b) | 344,430 | ||||||
8,177 | Medifast, Inc. | 257,821 | ||||||
6,099 | National Beverage Corp.(b) | 285,067 | ||||||
8,618 | Nutraceutical International Corp.(b) | 203,299 | ||||||
17,614 | Omega Protein Corp.(b) | 327,444 | ||||||
6,509 | Orchids Paper Products Co. | 199,631 | ||||||
32,447 | Performance Food Group Co.(b) | 839,728 | ||||||
61,249 | Pilgrim’s Pride Corp.(b) | 1,648,211 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Consumer Staples (continued) | ||||||||
22,903 | Post Holdings, Inc., Class A(b) | $ | 1,645,351 | |||||
10,994 | PriceSmart, Inc. | 951,421 | ||||||
9,706 | Revlon, Inc., Class A(b) | 353,590 | ||||||
16,798 | Sanderson Farms, Inc.(c) | 1,541,049 | ||||||
214 | Seaboard Corp.(b) | 642,642 | ||||||
11,374 | Seneca Foods Corp., Class A(b) | 370,679 | ||||||
46,134 | Smart & Final Stores, Inc.(b) | 734,453 | ||||||
40,764 | Snyder’s-Lance, Inc. | 1,303,225 | ||||||
80,426 | SpartanNash Co. | 2,227,800 | ||||||
12,319 | Spectrum Brands Holdings, Inc.(c) | 1,399,438 | ||||||
57,070 | Sprouts Farmers Market, Inc.(b) | 1,601,955 | ||||||
105,668 | SunOpta, Inc. (Canada)(b) | 568,494 | ||||||
10,485 | Tootsie Roll Industries, Inc., Class A(c) | 373,685 | ||||||
2,464 | USANA Health Sciences, Inc.(b) | 291,836 | ||||||
60,386 | Vector Group Ltd. | 1,304,338 | ||||||
14,942 | Village Super Market, Inc., Class A | 364,585 | ||||||
4,054 | WD-40 Co. | 414,724 | ||||||
22,437 | Weis Markets, Inc. | 1,021,332 | ||||||
|
| |||||||
34,183,873 | ||||||||
|
| |||||||
Energy—9.0% | ||||||||
232,210 | Abraxas Petroleum Corp.(b) | 352,959 | ||||||
96,985 | Aegean Marine Petroleum Network, Inc. (Greece)(c) | 779,759 | ||||||
101,043 | Alon USA Energy, Inc.(c) | 1,060,952 | ||||||
35,705 | Antero Resources Corp.(b) | 1,010,452 | ||||||
551,723 | Approach Resources, Inc.(b)(c) | 1,616,548 | ||||||
306,899 | Archrock, Inc. | 3,022,955 | ||||||
19,790 | Ardmore Shipping Corp. (Ireland) | 185,037 | ||||||
563,419 | Basic Energy Services, Inc.(b)(c) | 1,802,941 | ||||||
513,645 | Bill Barrett Corp.(b)(c) | 4,088,614 | ||||||
431,737 | Bonanza Creek Energy, Inc.(b)(c) | 1,675,140 | ||||||
109,379 | Bristow Group, Inc. | 2,506,967 | ||||||
620,499 | C&J Energy Services Ltd.(b)(c) | 899,724 | ||||||
68,664 | Callon Petroleum Co.(b) | 721,659 | ||||||
50,690 | CARBO Ceramics, Inc.(c) | 752,747 | ||||||
55,390 | Carrizo Oil & Gas, Inc.(b) | 1,959,144 | ||||||
37,797 | Clayton Williams Energy, Inc.(b)(c) | 685,260 | ||||||
114,972 | Clean Energy Fuels Corp.(b)(c) | 328,820 | ||||||
747,037 | Cloud Peak Energy, Inc.(b)(c) | 1,650,952 | ||||||
446,226 | Cobalt International Energy, Inc.(b) | 1,441,310 | ||||||
848,415 | Comstock Resources, Inc.(b)(c) | 690,695 | ||||||
73,317 | Contango Oil & Gas Co.(b) | 922,328 | ||||||
13,937 | Core Laboratories NV(c) | 1,862,819 | ||||||
61,926 | CVR Energy, Inc.(c) | 1,503,563 | ||||||
76,037 | DHT Holdings, Inc. | 436,452 | ||||||
12,771 | Diamondback Energy, Inc.(b) | 1,105,713 | ||||||
37,198 | Dorian LPG Ltd.(b) | 377,932 | ||||||
27,409 | Dril-Quip, Inc.(b) | 1,776,651 | ||||||
128,121 | DryShips, Inc. (Greece)(b) | 513,765 | ||||||
185,240 | Eclipse Resources Corp.(b)(c) | 450,133 | ||||||
502,670 | EP Energy Corp., Class A(b)(c) | 2,468,110 | ||||||
63,007 | Era Group, Inc.(b) | 600,457 | ||||||
790,122 | EXCO Resources, Inc.(b)(c) | 1,200,985 | ||||||
95,896 | Fairmount Santrol Holdings, Inc.(b)(c) | 383,584 | ||||||
122,284 | Forum Energy Technologies, Inc.(b) | 2,047,034 | ||||||
18,799 | Frank’s International NV(c) | 313,003 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 30 |
|
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Energy (continued) | ||||||||
37,218 | Frontline Ltd. (Norway)(c) | $ | 306,676 | |||||
43,253 | GasLog Ltd. (Monaco)(c) | 554,071 | ||||||
168,830 | Gastar Exploration, Inc.(b)(c) | 335,972 | ||||||
44,075 | Geospace Technologies Corp.(b)(c) | 721,067 | ||||||
99,959 | Green Plains, Inc. | 1,809,258 | ||||||
32,342 | Gulf Island Fabrication, Inc. | 242,888 | ||||||
16,931 | Gulfmark Offshore, Inc., Class A(b)(c) | 114,792 | ||||||
1,279,686 | Halcon Resources Corp.(b)(c) | 1,561,217 | ||||||
580,767 | Helix Energy Solutions Group, Inc.(b) | 5,012,019 | ||||||
215,970 | Hornbeck Offshore Services, Inc.(b)(c) | 2,535,488 | ||||||
25,252 | InterOil Corp. (Singapore)(b)(c) | 845,184 | ||||||
39,507 | Ion Geophysical Corp.(b)(c) | 361,884 | ||||||
153,296 | Jones Energy, Inc., Class A(b)(c) | 735,821 | ||||||
1,260,754 | Key Energy Services, Inc.(b)(c) | 666,813 | ||||||
139,421 | Kosmos Energy Ltd.(b) | 903,448 | ||||||
276,126 | Laredo Petroleum, Inc.(b)(c) | 3,363,215 | ||||||
34,059 | Matador Resources Co.(b)(c) | 733,971 | ||||||
33,951 | Matrix Service Co.(b) | 639,637 | ||||||
18,272 | Memorial Resource Development Corp.(b) | 238,998 | ||||||
13,977 | Natural Gas Services Group, Inc.(b) | 321,331 | ||||||
8,350 | Navigator Holdings Ltd. (United Kingdom)(b) | 127,254 | ||||||
269,240 | Newpark Resources, Inc.(b) | 1,257,351 | ||||||
80,141 | Nordic American Tankers Ltd.(c) | 1,234,973 | ||||||
80,704 | North Atlantic Drilling Ltd. (Norway)(b)(c) | 305,061 | ||||||
294,874 | Northern Oil and Gas, Inc.(b)(c) | 1,610,012 | ||||||
808,668 | Ocean Rig UDW, Inc. (Cyprus)(c) | 1,698,203 | ||||||
358,506 | Pacific Drilling SA(b) | 240,271 | ||||||
138,016 | Pacific Ethanol, Inc.(b)(c) | 652,816 | ||||||
11,081 | Panhandle Oil and Gas, Inc., Class A | 209,320 | ||||||
459,584 | Parker Drilling Co.(b) | 1,406,327 | ||||||
37,409 | Parsley Energy, Inc., Class A(b) | 876,119 | ||||||
23,542 | PDC Energy, Inc.(b) | 1,478,202 | ||||||
22,113 | PHI, Inc.(b) | 495,773 | ||||||
579,250 | Pioneer Energy Services Corp.(b) | 1,801,468 | ||||||
133,782 | Renewable Energy Group, Inc.(b) | 1,300,361 | ||||||
7,503 | REX American Resources Corp.(b)(c) | 407,938 | ||||||
509,365 | Rex Energy Corp.(b)(c) | 514,459 | ||||||
86,948 | Rice Energy, Inc.(b) | 1,505,070 | ||||||
11,554 | RigNet, Inc.(b) | 197,573 | ||||||
61,903 | RPC, Inc.(c) | 935,973 | ||||||
35,773 | RSP Permian, Inc.(b) | 1,095,012 | ||||||
224,082 | Sanchez Energy Corp.(b)(c) | 2,014,497 | ||||||
167,290 | Scorpio Tankers, Inc. (Monaco) | 1,047,235 | ||||||
65,863 | SemGroup Corp., Class A | 2,019,360 | ||||||
372,031 | Seventy Seven Energy, Inc.(b) | 70,946 | ||||||
95,567 | Ship Finance International Ltd. (Norway)(c) | 1,449,751 | ||||||
29,643 | Synergy Resources Corp.(b) | 214,022 | ||||||
91,639 | Teekay Tankers Ltd., Class A (Bermuda) | 361,058 | ||||||
81,034 | Tesco Corp. | 766,582 | ||||||
144,302 | TETRA Technologies, Inc.(b) | 1,038,974 | ||||||
431,933 | Triangle Petroleum Corp.(b)(c) | 193,895 | ||||||
150,533 | Tsakos Energy Navigation Ltd. (Greece) | 957,390 | ||||||
2,955,958 | Ultra Petroleum Corp.(b)(c) | 922,850 | ||||||
47,774 | US Silica Holdings, Inc.(c) | 1,220,626 | ||||||
168,876 | VAALCO Energy, Inc.(b) | 207,717 | ||||||
488,496 | W&T Offshore, Inc.(b)(c) | 1,177,275 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Energy (continued) | ||||||||
87,896 | Westmoreland Coal Co.(b)(c) | $ | 626,698 | |||||
187,105 | Willbros Group, Inc.(b) | 598,736 | ||||||
|
| |||||||
99,436,062 | ||||||||
|
| |||||||
Financials—24.1% | ||||||||
14,953 | 1st Source Corp. | 514,981 | ||||||
32,439 | Acadia Realty Trust REIT | 1,093,194 | ||||||
61,713 | AG Mortgage Investment Trust, Inc. REIT | 826,337 | ||||||
7,886 | Agree Realty Corp. REIT | 305,819 | ||||||
23,101 | Alexander & Baldwin, Inc. | 883,382 | ||||||
1,047 | Alexander’s, Inc. REIT | 400,655 | ||||||
12,862 | Altisource Asset Management Corp. (U.S. Virgin Islands)(b)(c) | 215,438 | ||||||
12,252 | Altisource Portfolio Solutions SA(b)(c) | 383,365 | ||||||
156,201 | Altisource Residential Corp. REIT(c) | 1,815,056 | ||||||
22,438 | American Assets Trust, Inc. REIT | 890,115 | ||||||
80,310 | American Capital Mortgage Investment Corp. REIT | 1,190,997 | ||||||
90,127 | American Homes 4 Rent, Class A REIT | 1,425,809 | ||||||
15,914 | American National Insurance Co. | 1,847,934 | ||||||
12,676 | Ameris Bancorp | 398,026 | ||||||
9,096 | AMERISAFE, Inc. | 490,092 | ||||||
40,999 | AmTrust Financial Services, Inc. | 1,018,825 | ||||||
3,488 | Anchor BanCorp Wisconsin, Inc.(b)(c) | 166,936 | ||||||
249,240 | Anworth Mortgage Asset Corp. REIT | 1,176,413 | ||||||
34,237 | Apollo Commercial Real Estate Finance, Inc. REIT | 545,395 | ||||||
64,802 | Apollo Residential Mortgage, Inc. REIT | 878,715 | ||||||
38,007 | Ares Commercial Real Estate Corp. REIT | 456,084 | ||||||
29,257 | Argo Group International Holdings Ltd. | 1,608,257 | ||||||
42,500 | Arlington Asset Investment Corp., Class A(c) | 549,950 | ||||||
24,681 | Armada Hoffler Properties, Inc. REIT | 288,768 | ||||||
42,293 | ARMOUR Residential REIT, Inc. REIT | 899,995 | ||||||
9,772 | Arrow Financial Corp. | 275,180 | ||||||
10,240 | Artisan Partners Asset Management, Inc., Class A | 330,854 | ||||||
34,229 | Ashford Hospitality Prime, Inc. REIT | 383,022 | ||||||
197,820 | Ashford Hospitality Trust, Inc. REIT | 1,105,814 | ||||||
85,244 | Astoria Financial Corp. | 1,282,070 | ||||||
10,193 | Baldwin & Lyons, Inc., Class B | 249,117 | ||||||
22,245 | Banc of California, Inc. | 452,686 | ||||||
6,251 | BancFirst Corp. | 389,875 | ||||||
39,503 | Banco Latinoamericano de Comercio Exterior SA, Class E (Panama) | 1,021,548 | ||||||
72,565 | Bancorp, Inc. (The)(b) | 411,444 | ||||||
67,438 | BancorpSouth, Inc. | 1,584,119 | ||||||
27,073 | Bank Mutual Corp. | 218,750 | ||||||
4,173 | Bank of Marin Bancorp | 204,560 | ||||||
22,179 | Bank of the Ozarks, Inc. | 915,993 | ||||||
8,175 | Banner Corp. | 349,726 | ||||||
53,252 | BBCN Bancorp, Inc. | 831,796 | ||||||
43,046 | Beneficial Bancorp, Inc.(b) | 597,909 | ||||||
23,292 | Berkshire Hills Bancorp, Inc. | 632,145 | ||||||
146,555 | BGC Partners, Inc., Class A | 1,330,719 | ||||||
47,148 | Blackstone Mortgage Trust, Inc., Class A REIT | 1,295,627 | ||||||
22,092 | Blue Hills Bancorp, Inc. | 322,101 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 31 |
|
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
13,254 | BNC Bancorp | $ | 296,359 | |||||
21,254 | BofI Holding, Inc.(b)(c) | 432,944 | ||||||
23,409 | BOK Financial Corp.(c) | 1,408,754 | ||||||
67,014 | Boston Private Financial Holdings, Inc. | 818,911 | ||||||
7,328 | Bridge Bancorp, Inc. | 223,064 | ||||||
69,298 | Brookline Bancorp, Inc. | 788,611 | ||||||
10,580 | Bryn Mawr Bank Corp. | 300,684 | ||||||
58,424 | Calamos Asset Management, Inc., Class A | 481,414 | ||||||
8,208 | Camden National Corp. | 357,130 | ||||||
6,612 | Capital Bank Financial Corp., Class A | 199,881 | ||||||
164,276 | Capstead Mortgage Corp. REIT | 1,596,763 | ||||||
19,435 | Cardinal Financial Corp. | 430,097 | ||||||
27,145 | CareTrust REIT, Inc. REIT | 345,284 | ||||||
25,701 | Cash America International, Inc. | 949,909 | ||||||
22,838 | CatchMark Timber Trust, Inc., Class A REIT | 242,311 | ||||||
44,824 | Cathay General Bancorp | 1,368,028 | ||||||
22,839 | CBOE Holdings, Inc. | 1,415,104 | ||||||
78,483 | Cedar Realty Trust, Inc. REIT | 543,102 | ||||||
20,642 | Centerstate Banks, Inc. | 336,258 | ||||||
19,017 | Central Pacific Financial Corp. | 443,857 | ||||||
13,762 | Charter Financial Corp. | 172,438 | ||||||
22,419 | Chatham Lodging Trust REIT | 477,749 | ||||||
26,096 | Chemical Financial Corp.(c) | 1,003,652 | ||||||
9,667 | Cherry Hill Mortgage Investment Corp. REIT | 137,368 | ||||||
39,079 | Chesapeake Lodging Trust REIT | 962,516 | ||||||
13,151 | City Holding Co. | 645,977 | ||||||
16,956 | Clifton Bancorp, Inc. | 252,305 | ||||||
46,985 | CNA Financial Corp. | 1,484,726 | ||||||
20,853 | CoBiz Financial, Inc. | 252,530 | ||||||
13,109 | Cohen & Steers, Inc. | 514,790 | ||||||
91,828 | Colony Capital, Inc., Class A REIT | 1,623,519 | ||||||
12,375 | Colony Starwood Homes REIT | 301,579 | ||||||
40,485 | Columbia Banking System, Inc. | 1,193,903 | ||||||
30,437 | Community Bank System, Inc. | 1,204,392 | ||||||
14,433 | Community Trust Bancorp, Inc. | 517,712 | ||||||
17,515 | ConnectOne Bancorp, Inc. | 301,433 | ||||||
51,782 | Consumer Portfolio Services, Inc.(b) | 204,539 | ||||||
16,067 | CorEnergy Infrastructure Trust, Inc. REIT(c) | 342,066 | ||||||
7,458 | CoreSite Realty Corp. REIT | 558,828 | ||||||
146,232 | Cousins Properties, Inc. REIT | 1,513,501 | ||||||
146,023 | Cowen Group, Inc., Class A(b) | 508,890 | ||||||
2,980 | Credit Acceptance Corp.(b)(c) | 584,885 | ||||||
50,124 | CubeSmart REIT | 1,484,172 | ||||||
17,750 | Customers Bancorp, Inc.(b) | 461,145 | ||||||
62,666 | CVB Financial Corp. | 1,076,602 | ||||||
16,001 | CyrusOne, Inc. REIT | 706,124 | ||||||
226,355 | CYS Investments, Inc. REIT | 1,835,739 | ||||||
1,755 | Diamond Hill Investment Group, Inc. | 307,581 | ||||||
29,485 | Dime Community Bancshares, Inc. | 533,973 | ||||||
36,724 | DuPont Fabros Technology, Inc. REIT | 1,462,350 | ||||||
104,097 | Dynex Capital, Inc. REIT | 676,630 | ||||||
10,498 | Eagle Bancorp, Inc.(b) | 532,249 | ||||||
21,186 | EastGroup Properties, Inc. REIT | 1,265,863 | ||||||
24,298 | Education Realty Trust, Inc. REIT | 966,331 | ||||||
14,057 | eHealth, Inc.(b) | 157,298 | ||||||
43,093 | Empire State Realty Trust, Inc., Class A REIT | 797,651 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
25,934 | Employers Holdings, Inc. | $ | 770,240 | |||||
43,857 | Encore Capital Group, Inc.(b)(c) | 1,234,575 | ||||||
83,085 | Enova International, Inc.(b) | 731,979 | ||||||
9,100 | Enstar Group Ltd. (Bermuda)(b) | 1,441,804 | ||||||
11,048 | Enterprise Financial Services Corp. | 302,384 | ||||||
48,076 | Equity One, Inc. REIT | 1,360,551 | ||||||
20,395 | Essent Group Ltd.(b) | 416,466 | ||||||
96,057 | EverBank Financial Corp. | 1,448,540 | ||||||
19,468 | Evercore Partners, Inc., Class A | 1,005,328 | ||||||
395,569 | EZCORP, Inc., Class A(b) | 1,958,067 | ||||||
9,777 | FactSet Research Systems, Inc. | 1,473,883 | ||||||
10,727 | FBL Financial Group, Inc., Class A | 648,662 | ||||||
11,337 | FBR & Co. | 209,734 | ||||||
4,703 | FCB Financial Holdings, Inc., Class A(b) | 164,370 | ||||||
9,333 | Federal Agricultural Mortgage Corp., Class C | 379,666 | ||||||
5,731 | Federated National Holding Co. | 109,176 | ||||||
72,836 | FelCor Lodging Trust, Inc. REIT | 521,506 | ||||||
14,910 | Fidelity & Guaranty Life(c) | 394,220 | ||||||
14,154 | Fidelity Southern Corp. | 228,729 | ||||||
12,371 | Financial Engines, Inc.(c) | 398,470 | ||||||
9,483 | Financial Institutions, Inc. | 265,524 | ||||||
406,343 | First BanCorp(b) | 1,584,738 | ||||||
17,935 | First Bancorp/Southern Pines NC | 365,874 | ||||||
5,696 | First Business Financial Services, Inc. | 144,166 | ||||||
19,588 | First Cash Financial Services, Inc.(b) | 895,759 | ||||||
5,374 | First Citizens BancShares, Inc., Class A | 1,370,370 | ||||||
77,752 | First Commonwealth Financial Corp. | 713,763 | ||||||
18,030 | First Community Bancshares, Inc. | 375,204 | ||||||
6,785 | First Defiance Financial Corp. | 268,550 | ||||||
72,843 | First Financial Bancorp | 1,420,438 | ||||||
30,159 | First Financial Bankshares, Inc.(c) | 976,548 | ||||||
10,520 | First Financial Corp. | 372,724 | ||||||
50,699 | First Industrial Realty Trust, Inc. REIT | 1,163,035 | ||||||
18,436 | First Interstate BancSystem, Inc., Class A | 499,616 | ||||||
22,317 | First Merchants Corp. | 572,431 | ||||||
55,463 | First Midwest Bancorp, Inc. | 1,024,956 | ||||||
12,609 | First NBC Bank Holding Co.(b) | 274,120 | ||||||
7,348 | First of Long Island Corp. (The) | 224,922 | ||||||
98,214 | First Potomac Realty Trust REIT | 825,980 | ||||||
30,997 | Five Oaks Investment Corp. REIT | 187,532 | ||||||
22,778 | Flagstar Bancorp, Inc.(b) | 539,155 | ||||||
27,218 | Flushing Financial Corp. | 542,999 | ||||||
163,309 | FNFV Group(b) | 1,758,838 | ||||||
57,675 | Forestar Group, Inc.(b) | 778,612 | ||||||
6,691 | Fox Chase Bancorp, Inc. | 131,880 | ||||||
117,877 | Franklin Street Properties Corp. REIT | 1,251,854 | ||||||
36,043 | FXCM, Inc., Class A(b)(c) | 420,261 | ||||||
39,228 | Gain Capital Holdings, Inc. | 268,712 | ||||||
58,797 | Gaming and Leisure Properties, Inc. REIT | 1,927,954 | ||||||
24,780 | Getty Realty Corp. REIT | 487,670 | ||||||
57,545 | Glacier Bancorp, Inc. | 1,489,840 | ||||||
23,696 | Gladstone Commercial Corp. REIT | 398,804 | ||||||
9,831 | Global Indemnity PLC, Class A(b) | 309,185 | ||||||
106,439 | Government Properties Income Trust REIT(c) | 2,013,826 | ||||||
202,627 | Gramercy Property Trust REIT | 1,716,251 | ||||||
8,785 | Great Southern Bancorp, Inc. | 332,600 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 32 |
|
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
61,340 | Great Western Bancorp, Inc. | $ | 1,933,437 | |||||
20,748 | Green Bancorp, Inc.(b) | 169,304 | ||||||
33,421 | Green Dot Corp., Class A(b) | 742,949 | ||||||
37,881 | Greenhill & Co., Inc. | 834,140 | ||||||
47,067 | Greenlight Capital Re Ltd., Class A(b) | 1,013,352 | ||||||
18,566 | Hanmi Financial Corp. | 429,246 | ||||||
11,068 | Hannon Armstrong Sustainable Infrastructure Capital, Inc. REIT | 214,719 | ||||||
9,036 | HCI Group, Inc. | 270,719 | ||||||
14,592 | Heartland Financial USA, Inc. | 488,978 | ||||||
21,147 | Heritage Financial Corp. | 390,162 | ||||||
16,611 | Heritage Insurance Holdings, Inc. | 220,760 | ||||||
43,780 | Hersha Hospitality Trust REIT | 844,516 | ||||||
16,327 | HFF, Inc., Class A | 519,688 | ||||||
54,281 | Hilltop Holdings, Inc.(b) | 1,078,021 | ||||||
18,591 | Home BancShares, Inc. | 799,227 | ||||||
14,862 | HomeStreet, Inc.(b) | 320,276 | ||||||
17,272 | HomeTrust Bancshares, Inc.(b) | 320,396 | ||||||
47,255 | Horace Mann Educators Corp. | 1,469,630 | ||||||
7,686 | Horizon Bancorp | 187,538 | ||||||
8,458 | Houlihan Lokey, Inc., Class A | 213,226 | ||||||
16,127 | Howard Hughes Corp. (The)(b) | 1,696,077 | ||||||
28,735 | Hudson Pacific Properties, Inc. REIT | 840,499 | ||||||
33,834 | IBERIABANK Corp. | 1,995,868 | ||||||
14,254 | Independent Bank Corp. | 215,948 | ||||||
15,187 | Independent Bank Corp./MA | 714,245 | ||||||
7,373 | Independent Bank Group, Inc. | 269,852 | ||||||
12,274 | Infinity Property & Casualty Corp. | 983,884 | ||||||
7,946 | InfraREIT, Inc. REIT | 131,745 | ||||||
9,561 | Interactive Brokers Group, Inc., Class A | 363,318 | ||||||
59,647 | International Bancshares Corp. | 1,562,155 | ||||||
13,960 | INTL FCStone, Inc.(b) | 381,108 | ||||||
25,543 | Investment Technology Group, Inc. | 498,599 | ||||||
174,601 | Investors Real Estate Trust REIT(c) | 1,051,098 | ||||||
81,641 | iStar, Inc. REIT(b) | 800,082 | ||||||
18,437 | James River Group Holdings Ltd. | 570,810 | ||||||
120,122 | JG Wentworth Co. (The), Class A(b)(c) | 138,140 | ||||||
78,542 | KCG Holdings, Inc., Class A(b) | 1,076,025 | ||||||
29,461 | Kennedy-Wilson Holdings, Inc. | 636,652 | ||||||
46,638 | Kite Realty Group Trust REIT | 1,269,953 | ||||||
9,892 | Lakeland Financial Corp. | 467,793 | ||||||
29,142 | LegacyTexas Financial Group, Inc. | 718,642 | ||||||
16,288 | LTC Properties, Inc. REIT | 755,600 | ||||||
78,355 | Maiden Holdings Ltd. | 958,282 | ||||||
15,241 | MainSource Financial Group, Inc. | 333,016 | ||||||
5,784 | Marcus & Millichap, Inc.(b) | 145,063 | ||||||
5,242 | MarketAxess Holdings, Inc. | 643,508 | ||||||
51,521 | Markit Ltd.(b) | 1,797,568 | ||||||
11,086 | Marlin Business Services Corp. | 163,962 | ||||||
42,321 | MB Financial, Inc. | 1,471,078 | ||||||
137,211 | Medical Properties Trust, Inc. REIT | 1,826,278 | ||||||
12,890 | Mercantile Bank Corp. | 310,907 | ||||||
32,594 | Meridian Bancorp, Inc. | 476,524 | ||||||
4,193 | Meta Financial Group, Inc. | 208,057 | ||||||
167,156 | MGIC Investment Corp.(b) | 1,208,538 | ||||||
16,960 | MidSouth Bancorp, Inc. | 153,488 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
33,026 | Monmouth Real Estate Investment Corp. REIT | $ | 379,799 | |||||
131,419 | Monogram Residential Trust, Inc. REIT | 1,331,274 | ||||||
6,009 | Morningstar, Inc. | 499,949 | ||||||
29,455 | Nam Tai Property, Inc. (China) | 179,675 | ||||||
26,516 | National Bank Holdings Corp., Class A | 530,055 | ||||||
14,778 | National Health Investors, Inc. REIT | 1,006,234 | ||||||
8,798 | National Interstate Corp. | 270,890 | ||||||
15,317 | National Storage Affiliates Trust REIT | 298,988 | ||||||
3,398 | National Western Life Group, Inc., Class A | 736,347 | ||||||
65,001 | Nationstar Mortgage Holdings, Inc.(b)(c) | 753,362 | ||||||
10,952 | Navigators Group, Inc. (The)(b) | 904,745 | ||||||
39,843 | NBT Bancorp, Inc. | 1,129,151 | ||||||
21,489 | Nelnet, Inc., Class A | 900,604 | ||||||
76,504 | New Senior Investment Group, Inc. REIT | 826,243 | ||||||
201,081 | New York Mortgage Trust, Inc. REIT(c) | 1,045,621 | ||||||
73,723 | New York REIT, Inc. REIT | 724,697 | ||||||
159,186 | Newcastle Investment Corp. REIT | 690,867 | ||||||
51,420 | NMI Holdings, Inc., Class A(b) | 323,432 | ||||||
32,244 | Northfield Bancorp, Inc. | 511,390 | ||||||
7,377 | Northrim Bancorp, Inc. | 190,327 | ||||||
15,907 | NorthStar Asset Management Group, Inc. | 197,883 | ||||||
126,633 | Northwest Bancshares, Inc. | 1,775,395 | ||||||
9,489 | OceanFirst Financial Corp. | 184,846 | ||||||
274,848 | Ocwen Financial Corp.(b) | 621,156 | ||||||
116,565 | OFG Bancorp | 1,029,269 | ||||||
126,874 | Old National Bancorp | 1,700,112 | ||||||
12,730 | One Liberty Properties, Inc. REIT | 298,137 | ||||||
50,135 | OneBeacon Insurance Group Ltd., Class A | 621,674 | ||||||
65,905 | OneMain Holdings, Inc.(b)(c) | 2,097,097 | ||||||
25,760 | Oppenheimer Holdings, Inc., Class A | 393,613 | ||||||
9,940 | Opus Bank | 359,033 | ||||||
13,166 | Orchid Island Capital, Inc. REIT(c) | 127,447 | ||||||
39,497 | Oritani Financial Corp. | 684,483 | ||||||
13,520 | Pacific Continental Corp. | 225,243 | ||||||
9,671 | Pacific Premier Bancorp, Inc.(b) | 224,947 | ||||||
12,442 | Park National Corp. | 1,142,176 | ||||||
67,111 | Parkway Properties, Inc. REIT | 1,103,976 | ||||||
12,302 | Peapack-Gladstone Financial Corp. | 235,460 | ||||||
45,985 | Pebblebrook Hotel Trust REIT | 1,271,025 | ||||||
64,913 | Pennsylvania Real Estate Investment Trust REIT | 1,489,104 | ||||||
16,961 | Peoples Bancorp, Inc. | 364,492 | ||||||
30,365 | Phoenix Cos., Inc. (The)(b) | 1,123,809 | ||||||
15,982 | Physicians Realty Trust REIT | 289,754 | ||||||
41,667 | PICO Holdings, Inc.(b) | 413,753 | ||||||
12,094 | Pinnacle Financial Partners, Inc. | 594,662 | ||||||
21,138 | Piper Jaffray Cos.(b) | 881,666 | ||||||
10,846 | Pjt Partners, Inc., Class A(c) | 242,083 | ||||||
28,737 | Post Properties, Inc. REIT | 1,648,354 | ||||||
41,415 | Potlatch Corp. REIT | 1,458,636 | ||||||
46,889 | PRA Group, Inc.(b) | 1,555,777 | ||||||
16,976 | Preferred Apartment Communities, Inc., Class A REIT | 209,484 | ||||||
7,328 | Preferred Bank | 232,737 | ||||||
39,382 | Primerica, Inc. | 1,951,772 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 33 |
|
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
38,338 | PrivateBancorp, Inc. | $ | 1,595,244 | |||||
60,560 | Provident Financial Services, Inc. | 1,209,989 | ||||||
10,854 | PS Business Parks, Inc. REIT | 1,039,379 | ||||||
11,903 | QTS Realty Trust, Inc., Class A REIT | 576,343 | ||||||
115,679 | Radian Group, Inc. | 1,479,534 | ||||||
289,015 | RAIT Financial Trust REIT | 878,606 | ||||||
52,299 | Ramco-Gershenson Properties Trust REIT | 926,215 | ||||||
5,933 | RE/MAX Holdings, Inc., Class A | 218,334 | ||||||
144,939 | Redwood Trust, Inc. REIT(c) | 1,878,409 | ||||||
22,707 | Regional Management Corp.(b) | 375,120 | ||||||
21,840 | Renasant Corp. | 749,986 | ||||||
10,299 | Republic Bancorp, Inc., Class A | 281,266 | ||||||
31,553 | Resource America, Inc., Class A | 199,415 | ||||||
81,183 | Resource Capital Corp. REIT(c) | 964,454 | ||||||
42,131 | Retail Opportunity Investments Corp. REIT | 828,717 | ||||||
22,729 | Rexford Industrial Realty, Inc. REIT | 426,623 | ||||||
6,127 | RMR Group, Inc. (The), Class A | 152,685 | ||||||
25,568 | Rouse Properties, Inc. REIT | 472,241 | ||||||
23,168 | S&T Bancorp, Inc. | 594,723 | ||||||
73,071 | Sabra Health Care REIT, Inc. REIT | 1,541,067 | ||||||
13,556 | Safeguard Scientifics, Inc.(b) | 187,073 | ||||||
18,303 | Safety Insurance Group, Inc. | 1,036,133 | ||||||
20,034 | Sandy Spring Bancorp, Inc. | 572,772 | ||||||
8,072 | Saul Centers, Inc. REIT | 429,269 | ||||||
12,560 | Seacoast Banking Corp. of Florida(b) | 203,723 | ||||||
43,097 | SEI Investments Co. | 2,072,104 | ||||||
50,550 | Select Income REIT | 1,170,232 | ||||||
50,047 | Selective Insurance Group, Inc. | 1,737,131 | ||||||
6,901 | Seritage Growth Properties, Class A REIT(c) | 368,306 | ||||||
21,466 | Silver Bay Realty Trust Corp. REIT | 313,404 | ||||||
10,287 | Simmons First National Corp., Class A | 480,403 | ||||||
13,323 | South State Corp. | 932,344 | ||||||
22,015 | Southside Bancshares, Inc. | 643,058 | ||||||
14,181 | Southwest Bancorp, Inc. | 227,605 | ||||||
12,158 | Sovran Self Storage, Inc. REIT | 1,291,423 | ||||||
36,133 | St. Joe Co. (The)(b) | 608,841 | ||||||
45,646 | STAG Industrial, Inc., Class A REIT | 911,094 | ||||||
17,297 | State Auto Financial Corp. | 354,761 | ||||||
19,154 | State Bank Financial Corp. | 399,936 | ||||||
43,946 | Sterling Bancorp | 718,078 | ||||||
28,427 | Stewart Information Services Corp. | 989,828 | ||||||
8,011 | Stock Yards Bancorp, Inc. | 323,965 | ||||||
4,747 | Stonegate Bank | 149,530 | ||||||
20,256 | STORE Capital Corp. REIT | 519,972 | ||||||
59,503 | Summit Hotel Properties, Inc. REIT | 678,334 | ||||||
23,906 | Sun Communities, Inc. REIT | 1,622,500 | ||||||
34,311 | Talmer Bancorp, Inc., Class A | 665,633 | ||||||
46,911 | Tanger Factory Outlet Centers, Inc. REIT | 1,645,638 | ||||||
10,320 | Tejon Ranch Co.(b) | 232,406 | ||||||
20,398 | Terreno Realty Corp. REIT | 464,462 | ||||||
8,263 | Territorial Bancorp, Inc. | 216,738 | ||||||
42,140 | Texas Capital Bancshares, Inc.(b) | 1,930,855 | ||||||
26,346 | TFS Financial Corp. | 471,593 | ||||||
56,461 | Third Point Reinsurance Ltd. (Bermuda)(b) | 642,526 | ||||||
65,175 | Tier REIT, Inc. REIT | 982,839 | ||||||
9,932 | Tompkins Financial Corp. | 648,957 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
28,162 | TowneBank | $ | 591,402 | |||||
16,420 | TriCo Bancshares | 442,026 | ||||||
17,802 | TriState Capital Holdings, Inc.(b) | 237,835 | ||||||
13,112 | Triumph Bancorp, Inc.(b) | 208,350 | ||||||
103,470 | TrustCo Bank Corp. NY | 663,243 | ||||||
75,155 | Trustmark Corp. | 1,842,049 | ||||||
31,295 | UMB Financial Corp. | 1,744,696 | ||||||
22,899 | UMH Properties, Inc. REIT | 224,410 | ||||||
35,512 | Union Bankshares Corp. | 937,872 | ||||||
45,342 | United Bankshares, Inc.(c) | 1,754,282 | ||||||
21,114 | United Community Banks, Inc. | 425,025 | ||||||
39,799 | United Financial Bancorp, Inc. | 516,591 | ||||||
17,782 | United Fire Group, Inc. | 796,989 | ||||||
8,703 | United Insurance Holdings Corp. | 141,946 | ||||||
5,725 | Universal Health Realty Income Trust REIT | 312,585 | ||||||
17,084 | Universal Insurance Holdings, Inc.(c) | 300,849 | ||||||
20,355 | Univest Corp. of Pennsylvania | 401,808 | ||||||
24,108 | Urban Edge Properties REIT | 625,362 | ||||||
20,237 | Urstadt Biddle Properties, Inc., Class A REIT | 416,073 | ||||||
7,246 | Virtu Financial, Inc., Class A | 151,079 | ||||||
4,195 | Virtus Investment Partners, Inc.(c) | 328,133 | ||||||
19,868 | Walker & Dunlop, Inc.(b) | 438,089 | ||||||
211,823 | Walter Investment Management Corp.(b)(c) | 1,535,717 | ||||||
60,241 | Washington REIT | 1,727,109 | ||||||
11,153 | Washington Trust Bancorp, Inc. | 408,534 | ||||||
22,182 | Waterstone Financial, Inc. | 310,992 | ||||||
26,984 | WesBanco, Inc. | 866,996 | ||||||
19,725 | Westamerica Bancorp.(c) | 961,002 | ||||||
29,996 | Western Alliance Bancorp(b) | 1,097,254 | ||||||
108,428 | Western Asset Mortgage Capital Corp. REIT(c) | 1,081,027 | ||||||
5,364 | Westwood Holdings Group, Inc. | 308,698 | ||||||
29,276 | Whitestone REIT | 393,177 | ||||||
41,623 | Wilshire Bancorp, Inc. | 448,280 | ||||||
39,043 | Winthrop Realty Trust REIT | 496,627 | ||||||
41,151 | Wintrust Financial Corp. | 2,140,675 | ||||||
26,268 | World Acceptance Corp.(b)(c) | 1,139,769 | ||||||
15,508 | WSFS Financial Corp. | 529,443 | ||||||
11,524 | ZAIS Financial Corp. REIT | 167,674 | ||||||
|
| |||||||
267,172,940 | ||||||||
|
| |||||||
Health Care—7.0% | ||||||||
7,123 | Abaxis, Inc. | 322,814 | ||||||
2,914 | ABIOMED, Inc.(b) | 283,066 | ||||||
12,859 | Acadia Healthcare Co., Inc.(b) | 812,560 | ||||||
7,831 | ACADIA Pharmaceuticals, Inc.(b) | 252,941 | ||||||
30,164 | Accuray, Inc.(b)(c) | 161,679 | ||||||
16,757 | Aceto Corp. | 375,860 | ||||||
14,813 | Acorda Therapeutics, Inc.(b) | 382,916 | ||||||
8,970 | Adamas Pharmaceuticals, Inc.(b)(c) | 151,414 | ||||||
3,169 | Agios Pharmaceuticals, Inc.(b)(c) | 155,123 | ||||||
21,650 | Air Methods Corp.(b) | 800,617 | ||||||
15,257 | Akorn, Inc.(b) | 388,291 | ||||||
10,309 | Albany Molecular Research, Inc.(b)(c) | 155,150 | ||||||
11,718 | Align Technology, Inc.(b) | 845,922 | ||||||
28,384 | Alkermes PLC(b) | 1,128,264 | ||||||
132,300 | Allscripts Healthcare Solutions, Inc.(b) | 1,772,820 | ||||||
7,020 | Almost Family, Inc.(b) | 294,910 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 34 |
|
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Health Care (continued) | ||||||||
8,090 | Alnylam Pharmaceuticals, Inc.(b) | $ | 542,354 | |||||
12,224 | AMAG Pharmaceuticals, Inc.(b) | 324,180 | ||||||
21,421 | Amedisys, Inc.(b) | 1,102,967 | ||||||
20,630 | AMN Healthcare Services, Inc.(b) | 732,571 | ||||||
16,995 | Amphastar Pharmaceuticals, Inc.(b) | 209,038 | ||||||
7,067 | Analogic Corp. | 558,222 | ||||||
35,972 | AngioDynamics, Inc.(b) | 440,657 | ||||||
4,880 | Anika Therapeutics, Inc.(b) | 222,821 | ||||||
4,653 | athenahealth, Inc.(b)(c) | 620,245 | ||||||
635 | Atrion Corp. | 252,286 | ||||||
14,242 | BioMarin Pharmaceutical, Inc.(b) | 1,206,013 | ||||||
216,248 | BioScrip, Inc.(b)(c) | 570,895 | ||||||
12,128 | Bio-Techne Corp. | 1,130,087 | ||||||
5,469 | Bluebird Bio, Inc.(b) | 242,550 | ||||||
41,979 | Bruker Corp. | 1,188,006 | ||||||
10,407 | Cambrex Corp.(b) | 502,034 | ||||||
4,857 | Cantel Medical Corp. | 325,370 | ||||||
19,215 | Capital Senior Living Corp.(b) | 385,453 | ||||||
42,216 | Catalent, Inc.(b) | 1,246,638 | ||||||
22,965 | Celldex Therapeutics, Inc.(b)(c) | 91,860 | ||||||
12,172 | Cepheid, Inc.(b) | 347,389 | ||||||
17,567 | Charles River Laboratories International, Inc.(b) | 1,392,536 | ||||||
7,093 | Chemed Corp. | 920,530 | ||||||
31,645 | Chimerix, Inc.(b) | 189,237 | ||||||
2,193 | China Biologic Products, Inc. (China)(b) | 256,581 | ||||||
20,022 | Civitas Solutions, Inc.(b) | 401,241 | ||||||
8,776 | Clovis Oncology, Inc.(b)(c) | 122,074 | ||||||
7,037 | Computer Programs & Systems, Inc.(c) | 361,209 | ||||||
20,054 | CONMED Corp. | 830,637 | ||||||
5,755 | CorVel Corp.(b) | 260,126 | ||||||
20,486 | Cross Country Healthcare, Inc.(b) | 254,641 | ||||||
14,487 | CryoLife, Inc. | 179,639 | ||||||
8,087 | Cynosure, Inc., Class A(b) | 395,778 | ||||||
25,036 | Depomed, Inc.(b) | 435,126 | ||||||
10,817 | Diplomat Pharmacy, Inc.(b)(c) | 327,647 | ||||||
9,308 | Emergent BioSolutions, Inc.(b) | 358,544 | ||||||
20,786 | Ensign Group, Inc. (The) | 468,932 | ||||||
26,804 | Exact Sciences Corp.(b) | 188,164 | ||||||
9,995 | Exactech, Inc.(b) | 227,286 | ||||||
20,800 | ExamWorks Group, Inc.(b) | 749,840 | ||||||
6,863 | FibroGen, Inc.(b) | 123,534 | ||||||
104,506 | Five Star Quality Care, Inc.(b) | 254,995 | ||||||
24,287 | Globus Medical, Inc., Class A(b) | 608,146 | ||||||
22,669 | Greatbatch, Inc.(b) | 788,881 | ||||||
36,873 | Haemonetics Corp.(b) | 1,195,791 | ||||||
47,094 | Harvard Bioscience, Inc.(b) | 139,869 | ||||||
7,172 | HealthStream, Inc.(b) | 162,231 | ||||||
44,899 | Healthways, Inc.(b) | 523,073 | ||||||
4,907 | HeartWare International, Inc.(b) | 163,698 | ||||||
35,251 | Hill-Rom Holdings, Inc. | 1,704,386 | ||||||
63,992 | HMS Holdings Corp.(b) | 1,080,825 | ||||||
18,780 | Horizon Pharma PLC(b) | 288,649 | ||||||
20,217 | ICON PLC(b) | 1,366,265 | ||||||
5,937 | ICU Medical, Inc.(b) | 589,782 | ||||||
18,487 | IDEXX Laboratories, Inc.(b) | 1,559,378 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Health Care (continued) | ||||||||
36,211 | Impax Laboratories, Inc.(b) | $ | 1,207,637 | |||||
11,013 | INC Research Holdings, Inc., Class A(b) | 530,056 | ||||||
23,745 | Infinity Pharmaceuticals, Inc.(b) | 137,721 | ||||||
4,622 | Insulet Corp.(b) | 153,913 | ||||||
12,592 | Integra LifeSciences Holdings Corp.(b) | 891,765 | ||||||
58,332 | Invacare Corp. | 655,652 | ||||||
5,926 | Ionis Pharmaceuticals, Inc.(b) | 242,788 | ||||||
12,102 | Jazz Pharmaceuticals PLC(b) | 1,823,771 | ||||||
4,848 | Juno Therapeutics, Inc.(b)(c) | 204,052 | ||||||
9,798 | K2M Group Holdings, Inc.(b) | 159,315 | ||||||
3,625 | Kite Pharma, Inc.(b)(c) | 167,765 | ||||||
10,242 | Landauer, Inc. | 355,807 | ||||||
8,254 | Lannett Co., Inc.(b)(c) | 158,312 | ||||||
9,929 | LHC Group, Inc.(b) | 400,536 | ||||||
6,478 | LivaNova PLC(b) | 341,585 | ||||||
17,255 | Luminex Corp.(b) | 346,826 | ||||||
21,257 | Masimo Corp.(b) | 921,491 | ||||||
26,572 | Medicines Co. (The)(b)(c) | 945,697 | ||||||
7,704 | Medidata Solutions, Inc.(b) | 336,126 | ||||||
13,436 | Medivation, Inc.(b) | 776,601 | ||||||
27,862 | Meridian Bioscience, Inc. | 532,443 | ||||||
31,332 | Merit Medical Systems, Inc.(b) | 634,473 | ||||||
14,421 | Momenta Pharmaceuticals, Inc.(b) | 137,144 | ||||||
28,265 | Myriad Genetics, Inc.(b) | 1,017,540 | ||||||
11,164 | Natus Medical, Inc.(b) | 355,797 | ||||||
8,104 | Neogen Corp.(b) | 382,833 | ||||||
3,652 | Neurocrine Biosciences, Inc.(b) | 166,458 | ||||||
27,652 | Novavax, Inc.(b)(c) | 144,896 | ||||||
19,700 | NuVasive, Inc.(b) | 1,042,918 | ||||||
7,122 | Nuvectra Corp.(b) | 59,860 | ||||||
16,523 | NxStage Medical, Inc.(b) | 266,351 | ||||||
17,199 | Omnicell, Inc.(b) | 547,960 | ||||||
35,082 | OPKO Health, Inc.(b)(c) | 377,132 | ||||||
23,648 | OraSure Technologies, Inc.(b) | 169,793 | ||||||
11,992 | Orthofix International NV(b) | 524,770 | ||||||
1,959 | Pacira Pharmaceuticals, Inc.(b) | 106,001 | ||||||
25,595 | PAREXEL International Corp.(b) | 1,563,855 | ||||||
40,795 | PharMerica Corp.(b) | 964,394 | ||||||
4,687 | Phibro Animal Health Corp., Class A | 97,208 | ||||||
6,607 | Portola Pharmaceuticals, Inc.(b) | 156,982 | ||||||
27,098 | PRA Health Sciences, Inc.(b) | 1,285,800 | ||||||
15,054 | Premier, Inc., Class A(b) | 508,976 | ||||||
6,186 | Press Ganey Holdings, Inc.(b) | 188,487 | ||||||
20,249 | Prestige Brands Holdings, Inc.(b) | 1,149,738 | ||||||
4,738 | Prothena Corp. PLC (Ireland)(b) | 204,634 | ||||||
15,217 | Providence Service Corp. (The)(b) | 758,415 | ||||||
6,541 | PTC Therapeutics, Inc.(b)(c) | 48,534 | ||||||
42,350 | Quality Systems, Inc. | 596,288 | ||||||
14,430 | Quidel Corp.(b) | 249,639 | ||||||
70,121 | RadNet, Inc.(b) | 354,111 | ||||||
54,953 | RTI Surgical, Inc.(b) | 219,262 | ||||||
11,232 | Sagent Pharmaceuticals, Inc.(b) | 130,740 | ||||||
22,961 | Sangamo BioSciences, Inc.(b) | 144,654 | ||||||
9,775 | Sarepta Therapeutics, Inc.(b)(c) | 138,707 | ||||||
16,634 | SciClone Pharmaceuticals, Inc.(b) | 219,569 | ||||||
4,906 | Seattle Genetics, Inc.(b) | 174,065 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 35 |
|
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Health Care (continued) | ||||||||
12,825 | Spectranetics Corp. (The)(b)(c) | $ | 218,025 | |||||
49,481 | Spectrum Pharmaceuticals, Inc.(b)(c) | 350,820 | ||||||
20,836 | Surgery Partners, Inc.(b)(c) | 339,418 | ||||||
15,842 | Surgical Care Affiliates, Inc.(b) | 765,961 | ||||||
26,959 | Syneron Medical Ltd. (Israel)(b) | 192,218 | ||||||
4,657 | Taro Pharmaceutical Industries Ltd.(b) | 650,769 | ||||||
43,602 | Team Health Holdings, Inc.(b) | 1,823,872 | ||||||
57,964 | Triple-S Management Corp., Class B(b) | 1,509,383 | ||||||
5,400 | U.S. Physical Therapy, Inc. | 269,244 | ||||||
81,454 | Universal American Corp. | 606,018 | ||||||
6,464 | Vascular Solutions, Inc.(b) | 225,917 | ||||||
10,184 | Veeva Systems, Inc., Class A(b) | 280,162 | ||||||
11,533 | Vertex Pharmaceuticals, Inc.(b) | 972,693 | ||||||
64,376 | VWR Corp.(b) | 1,714,977 | ||||||
25,085 | West Pharmaceutical Services, Inc. | 1,786,052 | ||||||
22,864 | Wright Medical Group NV(b) | 429,386 | ||||||
|
| |||||||
77,908,012 | ||||||||
|
| |||||||
Industrials—16.4% | ||||||||
23,657 | A.O. Smith Corp. | 1,826,794 | ||||||
12,320 | AAON, Inc. | 326,726 | ||||||
64,537 | AAR Corp. | 1,551,469 | ||||||
169,439 | ACCO Brands Corp.(b) | 1,616,448 | ||||||
156,596 | Accuride Corp.(b) | 253,686 | ||||||
54,320 | Actuant Corp., Class A | 1,450,887 | ||||||
29,146 | Advanced Drainage Systems, Inc.(c) | 673,856 | ||||||
12,840 | Advisory Board Co. (The)(b) | 406,258 | ||||||
56,380 | Aegion Corp.(b) | 1,196,947 | ||||||
32,426 | Aerojet Rocketdyne Holdings, Inc.(b) | 587,559 | ||||||
9,993 | Aerovironment, Inc.(b) | 288,598 | ||||||
73,252 | Air Transport Services Group, Inc.(b) | 1,032,121 | ||||||
89,224 | Aircastle Ltd. | 1,936,161 | ||||||
9,068 | Alamo Group, Inc. | 511,798 | ||||||
14,514 | Alaska Air Group, Inc. | 1,022,221 | ||||||
15,971 | Albany International Corp., Class A | 643,472 | ||||||
477 | Allegiant Travel Co. | 76,592 | ||||||
28,017 | Allegion PLC | 1,833,713 | ||||||
21,733 | Altra Industrial Motion Corp. | 623,737 | ||||||
4,618 | AMERCO | 1,625,536 | ||||||
8,087 | American Railcar Industries, Inc.(c) | 331,648 | ||||||
13,535 | American Science & Engineering, Inc. | 387,778 | ||||||
3,464 | American Woodmark Corp.(b) | 252,318 | ||||||
13,052 | Apogee Enterprises, Inc. | 540,875 | ||||||
36,085 | Applied Industrial Technologies, Inc. | 1,653,776 | ||||||
60,276 | ARC Document Solutions, Inc.(b) | 248,337 | ||||||
45,912 | ArcBest Corp. | 876,460 | ||||||
6,481 | Argan, Inc. | 221,521 | ||||||
15,356 | Astec Industries, Inc. | 743,230 | ||||||
9,494 | Astronics Corp.(b) | 350,803 | ||||||
28,340 | Atento SA (Spain)(b) | 242,307 | ||||||
4,273 | Atlas Air Worldwide Holdings, Inc.(b) | 170,664 | ||||||
14,597 | AZZ, Inc. | 801,667 | ||||||
40,839 | B/E Aerospace, Inc. | 1,986,001 | ||||||
67,537 | Babcock & Wilcox Enterprises, Inc.(b) | 1,543,220 | ||||||
35,599 | Barnes Group, Inc. | 1,156,611 | ||||||
5,306 | Barrett Business Services, Inc. | 164,539 | ||||||
47,545 | Beacon Roofing Supply, Inc.(b) | 2,031,598 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Industrials (continued) | ||||||||
18,203 | BMC Stock Holdings, Inc.(b) | $ | 319,463 | |||||
43,944 | Brady Corp., Class A | 1,164,077 | ||||||
55,716 | Briggs & Stratton Corp. | 1,179,508 | ||||||
42,940 | Builders FirstSource, Inc.(b) | 476,205 | ||||||
51,235 | BWX Technologies, Inc. | 1,710,737 | ||||||
8,637 | Caesarstone Sdot-Yam Ltd. (Israel)(b) | 319,828 | ||||||
59,970 | CAI International, Inc.(b) | 612,893 | ||||||
62,992 | Casella Waste Systems, Inc., Class A(b) | 451,023 | ||||||
54,953 | CBIZ, Inc.(b) | 559,422 | ||||||
74,235 | CDI Corp. | 530,780 | ||||||
14,137 | CEB, Inc. | 872,112 | ||||||
28,598 | CECO Environmental Corp. | 188,747 | ||||||
50,868 | Celadon Group, Inc. | 512,241 | ||||||
71,428 | Chart Industries, Inc.(b) | 1,838,557 | ||||||
15,818 | CIRCOR International, Inc. | 892,926 | ||||||
622,261 | Civeo Corp.(b) | 945,837 | ||||||
29,163 | CLARCOR, Inc. | 1,713,910 | ||||||
29,605 | Columbus McKinnon Corp. | 488,779 | ||||||
24,572 | Comfort Systems USA, Inc. | 724,628 | ||||||
130,773 | Commercial Vehicle Group, Inc.(b) | 336,087 | ||||||
23,464 | Continental Building Products, Inc.(b) | 460,129 | ||||||
3,097 | Copa Holdings SA, Class A (Panama)(c) | 197,434 | ||||||
39,990 | Copart, Inc.(b) | 1,713,172 | ||||||
64,780 | Costamare, Inc. (Greece)(c) | 628,366 | ||||||
17,054 | Covenant Transportation Group, Inc., Class A(b) | 339,545 | ||||||
14,854 | CRA International, Inc.(b) | 322,332 | ||||||
22,452 | Cubic Corp. | 933,330 | ||||||
293,928 | Diana Shipping, Inc. (Greece)(b)(c) | 1,016,991 | ||||||
86,501 | DigitalGlobe, Inc.(b) | 1,916,862 | ||||||
18,553 | Douglas Dynamics, Inc. | 425,049 | ||||||
25,243 | Ducommun, Inc.(b) | 401,616 | ||||||
33,977 | DXP Enterprises, Inc.(b) | 742,397 | ||||||
19,068 | Dycom Industries, Inc.(b) | 1,346,201 | ||||||
28,140 | Dynamic Materials Corp. | 274,928 | ||||||
19,086 | Echo Global Logistics, Inc.(b) | 446,040 | ||||||
19,970 | Encore Wire Corp. | 763,852 | ||||||
29,891 | Engility Holdings, Inc.(b) | 587,956 | ||||||
29,257 | Ennis, Inc. | 571,682 | ||||||
26,087 | EnPro Industries, Inc. | 1,528,176 | ||||||
19,089 | ESCO Technologies, Inc. | 734,545 | ||||||
7,317 | Exponent, Inc. | 364,679 | ||||||
34,282 | Federal Signal Corp. | 469,321 | ||||||
17,107 | Forward Air Corp. | 779,737 | ||||||
8,652 | Franklin Covey Co.(b) | 142,498 | ||||||
26,385 | Franklin Electric Co., Inc. | 833,502 | ||||||
12,668 | FreightCar America, Inc. | 217,256 | ||||||
18,889 | G&K Services, Inc., Class A | 1,334,508 | ||||||
22,704 | Gibraltar Industries, Inc.(b) | 600,521 | ||||||
30,158 | Global Brass & Copper Holdings, Inc. | 817,282 | ||||||
412,644 | Golden Ocean Group Ltd. (Norway)(b)(c) | 357,762 | ||||||
11,610 | GP Strategies Corp.(b) | 270,977 | ||||||
21,402 | Graco, Inc. | 1,677,703 | ||||||
7,517 | Graham Corp. | 139,140 | ||||||
25,954 | Granite Construction, Inc. | 1,157,289 | ||||||
115,652 | Great Lakes Dredge & Dock Corp.(b) | 528,530 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 36 |
|
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Industrials (continued) | ||||||||
50,399 | Greenbrier Cos., Inc. (The)(c) | $ | 1,511,466 | |||||
52,658 | Griffon Corp. | 832,523 | ||||||
78,437 | H&E Equipment Services, Inc. | 1,586,781 | ||||||
2,228 | Hawaiian Holdings, Inc.(b) | 93,732 | ||||||
28,804 | Healthcare Services Group, Inc. | 1,090,231 | ||||||
36,603 | Heartland Express, Inc. | 662,880 | ||||||
7,328 | HEICO Corp. | 449,280 | ||||||
16,232 | Heidrick & Struggles International, Inc. | 320,257 | ||||||
46,024 | Herman Miller, Inc. | 1,388,544 | ||||||
82,682 | Hill International, Inc.(b) | 350,572 | ||||||
55,104 | Hillenbrand, Inc. | 1,670,202 | ||||||
42,017 | HNI Corp. | 1,836,983 | ||||||
40,137 | Houston Wire & Cable Co. | 293,401 | ||||||
4,823 | Hurco Cos., Inc. | 156,169 | ||||||
17,822 | Huron Consulting Group, Inc.(b) | 991,081 | ||||||
12,223 | Hyster-Yale Materials Handling, Inc., Class A | 748,659 | ||||||
25,252 | ICF International, Inc.(b) | 994,171 | ||||||
64,127 | InnerWorkings, Inc.(b) | 523,918 | ||||||
16,271 | Insperity, Inc. | 858,621 | ||||||
9,691 | Insteel Industries, Inc. | 280,942 | ||||||
39,692 | Interface, Inc. | 675,558 | ||||||
41,618 | JetBlue Airways Corp.(b) | 823,620 | ||||||
12,391 | John Bean Technologies Corp. | 646,067 | ||||||
8,282 | Kadant, Inc. | 392,153 | ||||||
25,314 | Kaman Corp. | 1,065,466 | ||||||
56,378 | Kelly Services, Inc., Class A | 1,058,215 | ||||||
59,272 | KEYW Holding Corp. (The)(b)(c) | 408,384 | ||||||
25,935 | Kforce, Inc. | 493,024 | ||||||
45,649 | Kimball International, Inc., Class B | 531,354 | ||||||
35,197 | Knight Transportation, Inc. | 935,184 | ||||||
33,408 | Knoll, Inc. | 780,077 | ||||||
24,827 | Korn/Ferry International | 673,805 | ||||||
154,551 | Kratos Defense & Security Solutions, Inc.(b) | 820,666 | ||||||
28,420 | Landstar System, Inc. | 1,862,931 | ||||||
88,234 | Layne Christensen Co.(b)(c) | 784,400 | ||||||
28,871 | LB Foster Co., Class A | 568,181 | ||||||
13,231 | Lennox International, Inc. | 1,785,523 | ||||||
6,438 | Lindsay Corp.(c) | 492,249 | ||||||
20,000 | LSI Industries, Inc. | 253,000 | ||||||
13,344 | Lydall, Inc.(b) | 490,926 | ||||||
28,239 | Manitex International, Inc.(b)(c) | 187,507 | ||||||
24,467 | Marten Transport Ltd. | 456,554 | ||||||
21,706 | Masonite International Corp.(b) | 1,468,628 | ||||||
6,172 | Matson, Inc. | 239,967 | ||||||
17,509 | Matthews International Corp., Class A | 921,674 | ||||||
25,788 | McGrath RentCorp | 628,711 | ||||||
19,660 | Mercury Systems, Inc.(b) | 413,253 | ||||||
15,640 | Middleby Corp. (The)(b) | 1,714,770 | ||||||
12,876 | Milacron Holdings Corp.(b) | 220,566 | ||||||
14,746 | Miller Industries, Inc. | 313,500 | ||||||
15,319 | Mistras Group, Inc.(b) | 373,324 | ||||||
28,666 | Mobile Mini, Inc. | 924,478 | ||||||
25,887 | MSA Safety, Inc. | 1,244,906 | ||||||
46,416 | Mueller Industries, Inc. | 1,464,889 | ||||||
88,183 | Mueller Water Products, Inc., Class A | 947,967 | ||||||
10,152 | Multi-Color Corp. | 607,394 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Industrials (continued) | ||||||||
33,367 | MYR Group, Inc.(b) | $ | 851,192 | |||||
8,297 | National Presto Industries, Inc.(c) | 723,415 | ||||||
56,128 | Navigant Consulting, Inc.(b) | 895,803 | ||||||
506,774 | Navios Maritime Holdings, Inc. (Monaco)(c) | 592,926 | ||||||
24,275 | NCI Building Systems, Inc.(b) | 357,813 | ||||||
28,589 | Neff Corp., Class A(b) | 244,436 | ||||||
22,684 | NN, Inc. | 341,167 | ||||||
25,515 | Nordson Corp. | 1,957,766 | ||||||
21,344 | Nortek, Inc.(b) | 1,006,583 | ||||||
41,556 | Northwest Pipe Co.(b) | 448,389 | ||||||
27,976 | On Assignment, Inc.(b) | 1,008,815 | ||||||
92,939 | Orion Marine Group, Inc.(b) | 542,764 | ||||||
12,857 | Park-Ohio Holdings Corp. | 327,211 | ||||||
7,518 | Patrick Industries, Inc.(b) | 344,700 | ||||||
16,885 | PGT, Inc.(b) | 176,786 | ||||||
19,611 | Ply Gem Holdings, Inc.(b) | 287,301 | ||||||
13,860 | Powell Industries, Inc. | 431,323 | ||||||
15,197 | PowerSecure International, Inc.(b) | 284,488 | ||||||
28,279 | Primoris Services Corp. | 661,446 | ||||||
4,549 | Proto Labs, Inc.(b)(c) | 272,167 | ||||||
162,750 | Quad Graphics, Inc., Class A | 2,042,512 | ||||||
33,063 | Quanex Building Products Corp. | 622,907 | ||||||
38,747 | Raven Industries, Inc. | 623,439 | ||||||
10,092 | RBC Bearings, Inc.(b) | 739,744 | ||||||
34,403 | Resources Connection, Inc. | 508,132 | ||||||
66,570 | Roadrunner Transportation Systems, Inc.(b) | 786,857 | ||||||
28,987 | Rollins, Inc. | 778,881 | ||||||
58,840 | RPX Corp.(b) | 651,947 | ||||||
32,986 | Saia, Inc.(b) | 953,955 | ||||||
327,199 | Scorpio Bulkers, Inc.(b)(c) | 1,259,716 | ||||||
70,252 | Seaspan Corp. (Hong Kong)(c) | 1,187,961 | ||||||
20,952 | Simpson Manufacturing Co., Inc. | 787,795 | ||||||
36,570 | SkyWest, Inc. | 859,395 | ||||||
9,133 | SolarCity Corp.(b) | 276,913 | ||||||
13,380 | Sparton Corp.(b) | 287,135 | ||||||
2,462 | Spirit Airlines, Inc.(b) | 108,156 | ||||||
87,589 | SPX Corp. | 1,410,183 | ||||||
6,913 | Standex International Corp. | 530,158 | ||||||
108,621 | Steelcase, Inc., Class A | 1,657,556 | ||||||
56,668 | Sterling Construction Co., Inc.(b) | 296,940 | ||||||
10,716 | Sun Hydraulics Corp. | 379,132 | ||||||
10,004 | TASER International, Inc.(b) | 182,673 | ||||||
25,659 | Team, Inc.(b) | 737,183 | ||||||
11,619 | Tennant Co. | 620,571 | ||||||
46,768 | Tetra Tech, Inc. | 1,374,979 | ||||||
66,183 | Textainer Group Holdings Ltd.(c) | 1,021,204 | ||||||
23,496 | Thermon Group Holdings, Inc.(b) | 440,315 | ||||||
235,114 | Titan International, Inc. | 1,558,806 | ||||||
95,667 | Titan Machinery, Inc.(b) | 1,243,671 | ||||||
18,851 | Toro Co. (The) | 1,629,669 | ||||||
40,492 | TransUnion(b) | 1,212,735 | ||||||
8,292 | Trex Co., Inc.(b) | 393,455 | ||||||
57,803 | TriMas Corp.(b) | 1,046,234 | ||||||
30,793 | TriNet Group, Inc.(b) | 511,780 | ||||||
46,654 | TrueBlue, Inc.(b) | 871,963 | ||||||
117,387 | Tutor Perini Corp.(b) | 1,857,062 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 37 |
|
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Industrials (continued) | ||||||||
21,624 | Twin Disc, Inc. | $ | 286,518 | |||||
9,555 | UniFirst Corp. | 1,035,571 | ||||||
51,516 | Univar, Inc.(b) | 896,378 | ||||||
16,899 | Universal Forest Products, Inc. | 1,295,308 | ||||||
11,976 | Universal Logistics Holdings, Inc. | 170,778 | ||||||
11,639 | US Ecology, Inc. | 524,104 | ||||||
16,808 | USA Truck, Inc.(b) | 297,838 | ||||||
56,585 | USG Corp.(b) | 1,528,361 | ||||||
32,672 | Vectrus, Inc.(b) | 704,408 | ||||||
29,430 | Veritiv Corp.(b) | 1,207,219 | ||||||
28,104 | Viad Corp. | 836,094 | ||||||
6,660 | Virgin America, Inc.(b)(c) | 370,895 | ||||||
4,028 | VSE Corp. | 249,897 | ||||||
83,825 | Wabash National Corp.(b) | 1,194,506 | ||||||
6,068 | WageWorks, Inc.(b) | 326,822 | ||||||
17,155 | Watts Water Technologies, Inc., Class A | 958,450 | ||||||
53,091 | Werner Enterprises, Inc. | 1,345,326 | ||||||
70,097 | Wesco Aircraft Holdings, Inc.(b) | 1,011,500 | ||||||
71,094 | West Corp. | 1,523,544 | ||||||
37,216 | Woodward, Inc. | 2,017,479 | ||||||
40,599 | Xerium Technologies, Inc.(b) | 214,769 | ||||||
46,991 | XPO Logistics, Inc.(b)(c) | 1,416,309 | ||||||
|
| |||||||
180,996,563 | ||||||||
|
| |||||||
Information Technology—15.6% | ||||||||
96,751 | 3D Systems Corp.(b)(c) | 1,711,525 | ||||||
52,590 | ACI Worldwide, Inc.(b) | 1,051,274 | ||||||
37,768 | Actua Corp.(b) | 358,041 | ||||||
57,022 | Acxiom Corp.(b) | 1,252,773 | ||||||
39,174 | ADTRAN, Inc. | 756,842 | ||||||
19,108 | Advanced Energy Industries, Inc.(b) | 618,144 | ||||||
21,793 | Alpha & Omega Semiconductor Ltd.(b) | 283,091 | ||||||
5,721 | Ambarella, Inc.(b)(c) | 235,133 | ||||||
22,662 | Applied Micro Circuits Corp.(b) | 141,411 | ||||||
4,966 | Arista Networks, Inc.(b)(c) | 330,835 | ||||||
5,026 | Aspen Technology, Inc.(b) | 191,139 | ||||||
38,196 | AVG Technologies NV(b) | 756,281 | ||||||
43,188 | Avid Technology, Inc.(b) | 240,989 | ||||||
61,172 | AVX Corp. | 808,694 | ||||||
82,820 | Axcelis Technologies, Inc.(b) | 236,865 | ||||||
5,515 | Badger Meter, Inc. | 393,385 | ||||||
39,440 | Bankrate, Inc.(b) | 360,482 | ||||||
42,806 | Bazaarvoice, Inc.(b) | 143,400 | ||||||
18,431 | Bel Fuse, Inc., Class B | 307,060 | ||||||
27,541 | Belden, Inc. | 1,738,939 | ||||||
38,103 | Black Box Corp. | 557,066 | ||||||
7,335 | Black Knight Financial Services, Inc., Class A(b) | 234,573 | ||||||
10,136 | Blackbaud, Inc. | 626,101 | ||||||
19,712 | Blackhawk Network Holdings, Inc.(b) | 633,347 | ||||||
89,265 | Blucora, Inc.(b) | 715,013 | ||||||
12,857 | Bottomline Technologies (de), Inc.(b) | 315,768 | ||||||
6,926 | BroadSoft, Inc.(b) | 271,257 | ||||||
67,602 | Brooks Automation, Inc. | 639,515 | ||||||
32,891 | Cabot Microelectronics Corp. | 1,377,804 | ||||||
10,140 | CalAmp Corp.(b) | 151,796 | ||||||
39,768 | Calix, Inc.(b) | 275,592 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Information Technology (continued) | ||||||||
54,764 | Canadian Solar, Inc. (Canada)(b)(c) | $ | 980,823 | |||||
22,025 | Cardtronics, Inc.(b) | 868,225 | ||||||
4,087 | Cass Information Systems, Inc. | 202,184 | ||||||
5,962 | Cavium, Inc.(b) | 294,344 | ||||||
7,987 | CEVA, Inc.(b) | 184,180 | ||||||
80,943 | Checkpoint Systems, Inc.(b) | 819,143 | ||||||
33,435 | ChipMOS TECHNOLOGIES Bermuda Ltd. (Taiwan) | 562,377 | ||||||
119,436 | Ciber, Inc.(b) | 277,092 | ||||||
37,760 | Ciena Corp.(b) | 635,501 | ||||||
9,242 | Cimpress NV (Netherlands)(b) | 812,095 | ||||||
30,535 | Cirrus Logic, Inc.(b) | 1,102,313 | ||||||
19,937 | Cognex Corp. | 708,362 | ||||||
12,815 | Coherent, Inc.(b) | 1,196,921 | ||||||
21,390 | Cohu, Inc. | 247,268 | ||||||
14,920 | CommVault Systems, Inc.(b) | 653,048 | ||||||
4,861 | comScore, Inc.(b) | 148,844 | ||||||
34,534 | Comtech Telecommunications Corp. | 835,723 | ||||||
64,292 | Convergys Corp. | 1,703,738 | ||||||
38,237 | CoreLogic, Inc.(b) | 1,356,649 | ||||||
7,089 | CoStar Group, Inc.(b) | 1,398,731 | ||||||
12,678 | Cray, Inc.(b) | 480,116 | ||||||
17,480 | CSG Systems International, Inc. | 775,762 | ||||||
27,717 | CTS Corp. | 459,271 | ||||||
134,146 | Cypress Semiconductor Corp. | 1,211,338 | ||||||
67,838 | Daktronics, Inc. | 590,191 | ||||||
41,623 | Datalink Corp.(b) | 334,233 | ||||||
5,585 | Demandware, Inc.(b) | 257,357 | ||||||
33,489 | DHI Group, Inc.(b) | 238,107 | ||||||
32,652 | Digi International, Inc.(b) | 345,132 | ||||||
41,012 | Diodes, Inc.(b) | 763,643 | ||||||
31,163 | Dolby Laboratories, Inc., Class A | 1,483,670 | ||||||
18,139 | DSP Group, Inc.(b) | 172,320 | ||||||
10,713 | DTS, Inc.(b) | 233,758 | ||||||
148,730 | EarthLink Holdings Corp. | 864,121 | ||||||
90,206 | Eastman Kodak Co.(b)(c) | 1,066,235 | ||||||
11,237 | Ebix, Inc.(c) | 540,724 | ||||||
16,680 | Electro Rent Corp. | 166,967 | ||||||
32,885 | Electro Scientific Industries, Inc.(b) | 231,839 | ||||||
23,330 | Electronics for Imaging, Inc.(b) | 929,467 | ||||||
2,837 | Ellie Mae, Inc.(b) | 237,173 | ||||||
15,158 | Endurance International Group Holdings, Inc.(b)(c) | 162,342 | ||||||
65,392 | EnerNOC, Inc.(b)(c) | 445,973 | ||||||
72,308 | Entegris, Inc.(b) | 960,973 | ||||||
10,258 | Envestnet, Inc.(b) | 321,896 | ||||||
9,454 | EPAM Systems, Inc.(b) | 689,480 | ||||||
31,086 | EPIQ Systems, Inc. | 459,140 | ||||||
7,179 | ePlus, Inc.(b) | 577,120 | ||||||
20,371 | Euronet Worldwide, Inc.(b) | 1,570,604 | ||||||
98,332 | Everi Holdings, Inc.(b) | 165,198 | ||||||
34,654 | EVERTEC, Inc. | 466,789 | ||||||
27,797 | Everyday Health, Inc.(b) | 161,223 | ||||||
30,621 | Exar Corp.(b) | 186,788 | ||||||
9,626 | ExlService Holdings, Inc.(b) | 465,802 | ||||||
77,638 | Extreme Networks, Inc.(b) | 272,509 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 38 |
|
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Information Technology (continued) | ||||||||
15,899 | Fabrinet (Thailand)(b) | $ | 508,291 | |||||
7,032 | Fair Isaac Corp. | 750,385 | ||||||
15,208 | FARO Technologies, Inc.(b) | 441,640 | ||||||
15,049 | FEI Co. | 1,339,662 | ||||||
86,140 | Finisar Corp.(b) | 1,417,864 | ||||||
47,278 | FireEye, Inc.(b) | 820,273 | ||||||
6,654 | Fleetmatics Group PLC(b) | 241,208 | ||||||
32,041 | FormFactor, Inc.(b) | 246,716 | ||||||
8,499 | Forrester Research, Inc. | 285,736 | ||||||
25,465 | Fortinet, Inc.(b) | 827,867 | ||||||
14,829 | Gartner, Inc.(b) | 1,292,644 | ||||||
26,982 | Global Payments, Inc. | 1,947,561 | ||||||
12,813 | Gogo, Inc.(b)(c) | 135,690 | ||||||
18,448 | GrubHub, Inc.(b)(c) | 483,707 | ||||||
22,057 | GSI Group, Inc.(b) | 320,929 | ||||||
8,956 | Guidewire Software, Inc.(b) | 510,223 | ||||||
11,499 | Hackett Group, Inc. (The) | 171,105 | ||||||
150,595 | Harmonic, Inc.(b)(c) | 521,059 | ||||||
44,044 | Higher One Holdings, Inc.(b) | 166,927 | ||||||
21,053 | Hollysys Automation Technologies Ltd. (China)(b)(c) | 403,586 | ||||||
46,519 | Hutchinson Technology, Inc.(b) | 169,794 | ||||||
41,128 | II-VI, Inc.(b) | 858,341 | ||||||
28,566 | Infinera Corp.(b) | 339,650 | ||||||
12,751 | Infoblox, Inc.(b) | 213,324 | ||||||
7,489 | Inphi Corp.(b) | 222,199 | ||||||
63,316 | Insight Enterprises, Inc.(b) | 1,564,538 | ||||||
46,991 | Integrated Device Technology, Inc.(b) | 905,986 | ||||||
5,920 | Interactive Intelligence Group, Inc.(b) | 220,046 | ||||||
19,727 | InterDigital, Inc. | 1,124,044 | ||||||
154,337 | Internap Corp.(b) | 351,888 | ||||||
101,600 | Intersil Corp., Class A | 1,187,704 | ||||||
18,156 | InterXion Holding NV (Netherlands)(b) | 615,125 | ||||||
29,688 | Intralinks Holdings, Inc.(b) | 264,520 | ||||||
44,812 | InvenSense, Inc.(b)(c) | 344,156 | ||||||
7,984 | IPG Photonics Corp.(b) | 691,973 | ||||||
35,838 | Itron, Inc.(b) | 1,473,659 | ||||||
44,479 | Ixia(b) | 450,127 | ||||||
17,518 | IXYS Corp. | 189,194 | ||||||
15,190 | j2 Global, Inc. | 964,869 | ||||||
18,529 | Jack Henry & Associates, Inc. | 1,501,405 | ||||||
103,936 | KEMET Corp.(b) | 241,132 | ||||||
29,810 | Kimball Electronics, Inc.(b) | 326,121 | ||||||
142,370 | Knowles Corp.(b)(c) | 1,903,487 | ||||||
91,104 | Kulicke & Soffa Industries, Inc. (Singapore)(b) | 976,635 | ||||||
18,177 | KVH Industries, Inc.(b) | 177,408 | ||||||
84,162 | Lattice Semiconductor Corp.(b) | 468,782 | ||||||
62,879 | Lionbridge Technologies, Inc.(b) | 313,766 | ||||||
85,280 | Liquidity Services, Inc.(b) | 475,862 | ||||||
8,314 | Littelfuse, Inc. | 968,415 | ||||||
35,687 | LivePerson, Inc.(b) | 215,906 | ||||||
3,328 | LogMeIn, Inc.(b) | 198,682 | ||||||
19,400 | Lumentum Holdings, Inc.(b) | 490,820 | ||||||
4,377 | Luxoft Holding, Inc., Class A(b) | 253,034 | ||||||
3,693 | M/A-Com Technology Solutions Holdings, Inc.(b) | 151,007 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Information Technology (continued) | ||||||||
136,643 | Magnachip Semiconductor Corp. (South Korea)(b)(c) | $ | 705,078 | |||||
8,555 | Manhattan Associates, Inc.(b) | 517,920 | ||||||
41,988 | ManTech International Corp., Class A | 1,419,194 | ||||||
29,990 | Marchex, Inc., Class B | 127,458 | ||||||
19,502 | MAXIMUS, Inc. | 1,031,656 | ||||||
32,574 | Maxwell Technologies, Inc.(b) | 209,125 | ||||||
12,761 | Mellanox Technologies Ltd. (Israel)(b) | 551,913 | ||||||
69,526 | Mentor Graphics Corp. | 1,387,739 | ||||||
4,117 | MercadoLibre, Inc. (Argentina)(c) | 514,172 | ||||||
22,743 | Methode Electronics, Inc. | 676,149 | ||||||
43,250 | Microsemi Corp.(b) | 1,461,418 | ||||||
2,752 | MicroStrategy, Inc., Class A(b) | 493,489 | ||||||
34,672 | MKS Instruments, Inc. | 1,243,338 | ||||||
7,494 | Mobileye NV(b) | 285,896 | ||||||
75,250 | ModusLink Global Solutions, Inc.(b)(c) | 109,865 | ||||||
104,101 | MoneyGram International, Inc.(b) | 640,221 | ||||||
6,117 | Monolithic Power Systems, Inc. | 381,823 | ||||||
13,378 | Monotype Imaging Holdings, Inc. | 294,717 | ||||||
174,697 | Monster Worldwide, Inc.(b) | 559,030 | ||||||
9,673 | MTS Systems Corp. | 543,816 | ||||||
9,945 | Multi-Fineline Electronix, Inc.(b) | 228,735 | ||||||
16,244 | Nanometrics, Inc.(b) | 290,118 | ||||||
48,951 | National Instruments Corp. | 1,349,579 | ||||||
13,909 | NeoPhotonics Corp.(b) | 166,769 | ||||||
63,429 | Net 1 UEPS Technologies, Inc. (South Africa)(b) | 756,074 | ||||||
30,141 | NETGEAR, Inc.(b) | 1,277,978 | ||||||
29,686 | NetScout Systems, Inc.(b) | 660,810 | ||||||
2,858 | NetSuite, Inc.(b) | 231,612 | ||||||
62,664 | NeuStar, Inc., Class A(b)(c) | 1,471,977 | ||||||
37,471 | Newport Corp.(b) | 861,458 | ||||||
24,895 | NIC, Inc. | 440,890 | ||||||
50,970 | Oclaro, Inc.(b)(c) | 257,399 | ||||||
28,368 | Orbotech Ltd. (Israel)(b) | 683,101 | ||||||
12,574 | OSI Systems, Inc.(b) | 639,891 | ||||||
2,893 | Palo Alto Networks, Inc.(b) | 436,467 | ||||||
42,700 | Pandora Media, Inc.(b)(c) | 424,011 | ||||||
38,129 | Park Electrochemical Corp. | 621,884 | ||||||
12,418 | PC Connection, Inc. | 295,176 | ||||||
8,603 | Pegasystems, Inc. | 227,033 | ||||||
22,277 | Perficient, Inc.(b) | 465,144 | ||||||
74,990 | Photronics, Inc.(b) | 793,394 | ||||||
26,725 | Plantronics, Inc. | 1,027,576 | ||||||
45,548 | Plexus Corp.(b) | 1,902,084 | ||||||
151,038 | Polycom, Inc.(b) | 1,804,904 | ||||||
9,610 | Power Integrations, Inc. | 463,683 | ||||||
29,843 | Progress Software Corp.(b) | 761,593 | ||||||
48,629 | PTC, Inc.(b) | 1,773,013 | ||||||
16,109 | Qlik Technologies, Inc.(b) | 495,996 | ||||||
73,730 | QLogic Corp.(b) | 965,126 | ||||||
5,492 | Qualys, Inc.(b) | 138,289 | ||||||
593,136 | Quantum Corp.(b) | 273,021 | ||||||
50,169 | QuinStreet, Inc.(b) | 176,595 | ||||||
18,067 | Quotient Technology, Inc.(b)(c) | 209,939 | ||||||
82,275 | Rackspace Hosting, Inc.(b) | 1,881,629 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 39 |
|
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Information Technology (continued) | ||||||||
28,488 | Radware Ltd. (Israel)(b) | $ | 307,670 | |||||
36,464 | Rambus, Inc.(b) | 423,712 | ||||||
13,724 | RealPage, Inc.(b) | 301,791 | ||||||
40,321 | RetailMeNot, Inc.(b) | 339,906 | ||||||
49,737 | Rocket Fuel, Inc.(b)(c) | 142,248 | ||||||
31,467 | Rofin-Sinar Technologies, Inc.(b) | 1,012,923 | ||||||
15,981 | Rogers Corp.(b) | 916,670 | ||||||
62,714 | Rovi Corp.(b) | 1,105,021 | ||||||
25,988 | Ruckus Wireless, Inc.(b) | 357,075 | ||||||
23,657 | Rudolph Technologies, Inc.(b) | 328,123 | ||||||
33,973 | Sabre Corp. | 983,518 | ||||||
12,863 | SciQuest, Inc.(b) | 177,767 | ||||||
31,749 | SeaChange International, Inc.(b) | 118,424 | ||||||
36,110 | Semtech Corp.(b) | 781,420 | ||||||
6,489 | ServiceNow, Inc.(b) | 463,834 | ||||||
25,760 | ShoreTel, Inc.(b) | 157,651 | ||||||
25,520 | Sigma Designs, Inc.(b) | 161,542 | ||||||
46,628 | Silicon Graphics International Corp.(b) | 208,893 | ||||||
20,678 | Silicon Laboratories, Inc.(b) | 967,730 | ||||||
30,909 | SINA Corp. (China)(b) | 1,548,232 | ||||||
28,475 | Sohu.com, Inc. (China)(b) | 1,279,382 | ||||||
30,268 | Sonus Networks, Inc.(b) | 250,014 | ||||||
15,761 | Splunk, Inc.(b) | 819,257 | ||||||
3,112 | SPS Commerce, Inc.(b) | 158,494 | ||||||
17,348 | SS&C Technologies Holdings, Inc. | 1,060,830 | ||||||
2,049 | Stamps.com, Inc.(b)(c) | 168,756 | ||||||
78,236 | Stratasys Ltd.(b)(c) | 1,914,435 | ||||||
127,914 | SunEdison Semiconductor PTE Ltd.(b)(c) | 735,506 | ||||||
31,999 | SunPower Corp.(b)(c) | 644,460 | ||||||
19,796 | Super Micro Computer, Inc.(b) | 532,710 | ||||||
34,417 | Sykes Enterprises, Inc.(b) | 1,003,256 | ||||||
11,123 | Synaptics, Inc.(b) | 795,851 | ||||||
16,932 | Synchronoss Technologies, Inc.(b) | 526,077 | ||||||
12,130 | Syntel, Inc.(b) | 515,889 | ||||||
8,421 | Tableau Software, Inc., Class A(b) | 435,366 | ||||||
39,172 | Take-Two Interactive Software, Inc.(b) | 1,338,899 | ||||||
20,955 | Tangoe, Inc.(b) | 184,823 | ||||||
33,834 | Telenav, Inc.(b) | 192,854 | ||||||
15,010 | TeleTech Holdings, Inc. | 417,128 | ||||||
23,948 | Tessera Technologies, Inc. | 687,787 | ||||||
51,414 | TiVo, Inc.(b) | 513,112 | ||||||
119,668 | TTM Technologies, Inc.(b) | 780,235 | ||||||
88,130 | Twitter, Inc.(b) | 1,288,461 | ||||||
3,918 | Tyler Technologies, Inc.(b) | 573,634 | ||||||
4,583 | Ubiquiti Networks, Inc.(b)(c) | 163,246 | ||||||
2,464 | Ultimate Software Group, Inc. (The)(b) | 484,398 | ||||||
69,116 | Ultra Clean Holdings, Inc.(b) | 393,270 | ||||||
17,711 | Ultratech, Inc.(b) | 384,152 | ||||||
44,234 | United Online, Inc.(b) | 479,054 | ||||||
6,782 | Universal Display Corp.(b) | 395,458 | ||||||
10,726 | VASCO Data Security International, Inc.(b)(c) | 185,882 | ||||||
51,053 | Veeco Instruments, Inc.(b) | 939,886 | ||||||
72,565 | VeriFone Systems, Inc.(b) | 2,065,200 | ||||||
39,068 | Verint Systems, Inc.(b) | 1,322,061 | ||||||
21,470 | ViaSat, Inc.(b) | 1,646,749 | ||||||
139,586 | Viavi Solutions, Inc.(b) | 908,705 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Information Technology (continued) | ||||||||
13,602 | Virtusa Corp.(b) | $ | 483,415 | |||||
21,558 | Vishay Precision Group, Inc.(b) | 322,508 | ||||||
30,524 | VMware, Inc., Class A(b)(c) | 1,737,121 | ||||||
19,512 | Web.com Group, Inc.(b) | 390,045 | ||||||
7,893 | WebMD Health Corp.(b) | 495,207 | ||||||
24,734 | WEX, Inc.(b) | 2,337,116 | ||||||
7,889 | Workday, Inc., Class A(b) | 591,517 | ||||||
45,669 | Xcerra Corp.(b) | 269,447 | ||||||
10,426 | XO Group, Inc.(b) | 184,123 | ||||||
14,865 | Xura, Inc.(b) | 332,827 | ||||||
105,867 | Yandex NV, Class A (Russia)(b) | 2,167,097 | ||||||
18,789 | Yelp, Inc., Class A(b) | 394,569 | ||||||
22,512 | Zebra Technologies Corp., Class A(b) | 1,408,351 | ||||||
5,142 | Zillow Group, Inc., Class A(b)(c) | 128,653 | ||||||
9,885 | Zillow Group, Inc., Class C(b)(c) | 237,635 | ||||||
625,983 | Zynga, Inc., Class A(b) | 1,489,840 | ||||||
|
| |||||||
172,201,492 | ||||||||
|
| |||||||
Materials—6.3% | ||||||||
52,198 | A. Schulman, Inc. | 1,455,802 | ||||||
5,653 | AEP Industries, Inc. | 348,394 | ||||||
24,314 | American Vanguard Corp.(b) | 402,397 | ||||||
7,894 | Balchem Corp. | 484,376 | ||||||
100,864 | Boise Cascade Co.(b) | 2,105,032 | ||||||
44,016 | Calgon Carbon Corp. | 721,422 | ||||||
130,622 | Century Aluminum Co.(b)(c) | 1,152,086 | ||||||
38,520 | Clearwater Paper Corp.(b) | 2,301,185 | ||||||
166,857 | Coeur Mining, Inc.(b) | 1,351,542 | ||||||
4,040 | Deltic Timber Corp. | 252,500 | ||||||
19,230 | Eagle Materials, Inc. | 1,425,328 | ||||||
104,727 | Ferro Corp.(b) | 1,334,222 | ||||||
51,596 | Flotek Industries, Inc.(b)(c) | 487,582 | ||||||
25,456 | FutureFuel Corp. | 286,125 | ||||||
152,066 | Gold Resource Corp. | 500,297 | ||||||
63,747 | Greif, Inc., Class A | 2,212,021 | ||||||
37,617 | H.B. Fuller Co. | 1,682,232 | ||||||
10,625 | Hawkins, Inc. | 415,756 | ||||||
15,532 | Haynes International, Inc. | 582,916 | ||||||
30,617 | Headwaters, Inc.(b) | 612,646 | ||||||
416,624 | Hecla Mining Co.(c) | 1,795,649 | ||||||
35,036 | Innophos Holdings, Inc. | 1,294,931 | ||||||
15,606 | Innospec, Inc. | 754,706 | ||||||
313,712 | Intrepid Potash, Inc.(b) | 401,551 | ||||||
17,537 | Kaiser Aluminum Corp. | 1,663,034 | ||||||
127,614 | KapStone Paper and Packaging Corp. | 2,027,787 | ||||||
6,684 | KMG Chemicals, Inc. | 158,344 | ||||||
46,338 | Koppers Holdings, Inc.(b) | 1,164,474 | ||||||
73,541 | Kraton Performance Polymers, Inc.(b) | 1,670,116 | ||||||
78,094 | Kronos Worldwide, Inc.(c) | 519,325 | ||||||
91,966 | Louisiana-Pacific Corp.(b) | 1,563,422 | ||||||
102,253 | LSB Industries, Inc.(b) | 1,345,650 | ||||||
31,180 | Materion Corp. | 903,908 | ||||||
111,510 | McEwen Mining, Inc.(c) | 289,926 | ||||||
51,064 | Mercer International, Inc. (Canada) | 428,938 | ||||||
22,768 | Minerals Technologies, Inc. | 1,363,803 | ||||||
34,444 | Myers Industries, Inc. | 464,305 | ||||||
10,566 | Neenah Paper, Inc. | 687,741 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 40 |
|
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Materials (continued) | ||||||||
33,803 | Olympic Steel, Inc. | $ | 764,624 | |||||
52,883 | OMNOVA Solutions, Inc.(b) | 378,113 | ||||||
31,965 | Orion Engineered Carbons SA | 454,542 | ||||||
72,626 | P.H. Glatfelter Co. | 1,665,314 | ||||||
211,874 | Platform Specialty Products Corp.(b)(c) | 2,182,302 | ||||||
8,788 | Quaker Chemical Corp. | 782,659 | ||||||
87,712 | Rayonier Advanced Materials, Inc. | 899,048 | ||||||
125,218 | Rentech, Inc.(b) | 434,506 | ||||||
233,157 | Resolute Forest Products, Inc.(b)(c) | 1,354,642 | ||||||
36,345 | Royal Gold, Inc. | 2,275,924 | ||||||
59,370 | Ryerson Holding Corp.(b)(c) | 527,206 | ||||||
103,995 | Schnitzer Steel Industries, Inc., Class A | 2,144,377 | ||||||
28,613 | Schweitzer-Mauduit International, Inc. | 984,001 | ||||||
24,508 | Scotts Miracle-Gro Co. (The), Class A | 1,734,676 | ||||||
21,755 | Stepan Co. | 1,333,364 | ||||||
131,128 | Stillwater Mining Co.(b) | 1,599,762 | ||||||
260,101 | SunCoke Energy, Inc. | 1,932,550 | ||||||
148,237 | TimkenSteel Corp. | 1,888,539 | ||||||
36,297 | Tredegar Corp. | 579,300 | ||||||
23,850 | Trinseo SA(b)(c) | 1,020,542 | ||||||
379,334 | Tronox Ltd., Class A | 2,761,552 | ||||||
5,943 | US Concrete, Inc.(b) | 367,040 | ||||||
33,326 | Westlake Chemical Corp. | 1,672,632 | ||||||
50,042 | Worthington Industries, Inc. | 1,889,086 | ||||||
|
| |||||||
70,237,772 | ||||||||
|
| |||||||
Telecommunication Services—1.4% | ||||||||
21,342 | 8x8, Inc.(b) | 242,018 | ||||||
6,881 | Atlantic Tele-Network, Inc. | 494,813 | ||||||
25,705 | Boingo Wireless, Inc.(b) | 197,671 | ||||||
468,609 | Cincinnati Bell, Inc.(b) | 1,790,086 | ||||||
14,261 | Cogent Communications Group, Inc. | 551,901 | ||||||
59,745 | Consolidated Communications Holdings, Inc.(c) | 1,412,372 | ||||||
40,363 | FairPoint Communications, Inc.(b) | 535,213 | ||||||
37,582 | General Communication, Inc., Class A(b) | 635,136 | ||||||
13,534 | Hawaiian Telcom Holdco, Inc.(b) | 311,688 | ||||||
37,311 | IDT Corp., Class B | 572,351 | ||||||
32,293 | Inteliquent, Inc. | 535,741 | ||||||
188,642 | Intelsat SA(b)(c) | 745,136 | ||||||
147,584 | Iridium Communications, Inc.(b)(c) | 1,191,003 | ||||||
27,111 | Lumos Networks Corp.(b) | 345,665 | ||||||
62,867 | NTELOS Holdings Corp.(b) | 581,520 | ||||||
22,537 | ORBCOMM, Inc.(b) | 223,342 | ||||||
17,045 | SBA Communications Corp., Class A(b) | 1,756,317 | ||||||
21,540 | Shenandoah Telecommunications Co. | 617,982 | ||||||
30,394 | Spok Holdings, Inc. | 516,394 | ||||||
26,159 | United States Cellular Corp.(b) | 1,115,420 | ||||||
144,849 | Vonage Holdings Corp.(b) | 676,445 | ||||||
24,035 | Zayo Group Holdings, Inc.(b) | 623,948 | ||||||
|
| |||||||
15,672,162 | ||||||||
|
| |||||||
Utilities—1.5% | ||||||||
43,199 | Abengoa Yield PLC (Spain)(c) | 778,878 | ||||||
19,059 | American States Water Co. | 794,570 | ||||||
6,032 | Artesian Resources Corp., Class A | 162,804 | ||||||
21,504 | Avangrid, Inc.(b) | 862,310 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Utilities (continued) | ||||||||
38,830 | California Water Service Group | $ | 1,084,522 | |||||
8,918 | Chesapeake Utilities Corp. | 530,799 | ||||||
6,512 | Connecticut Water Service, Inc. | 306,194 | ||||||
14,352 | Consolidated Water Co. Ltd. (Cayman Islands) | 199,349 | ||||||
38,795 | El Paso Electric Co. | 1,749,655 | ||||||
40,875 | Empire District Electric Co. (The) | 1,376,261 | ||||||
22,319 | MGE Energy, Inc. | 1,112,602 | ||||||
11,475 | Middlesex Water Co. | 419,756 | ||||||
28,770 | Northwest Natural Gas Co. | 1,482,806 | ||||||
16,274 | NRG Yield, Inc., Class A | 246,226 | ||||||
29,630 | NRG Yield, Inc., Class C(c) | 479,413 | ||||||
14,731 | Ormat Technologies, Inc. | 639,325 | ||||||
39,089 | Otter Tail Corp. | 1,130,454 | ||||||
28,257 | Pattern Energy Group, Inc. | 593,397 | ||||||
11,929 | SJW Corp. | 410,477 | ||||||
57,658 | South Jersey Industries, Inc. | 1,609,235 | ||||||
24,293 | TerraForm Power, Inc., Class A(b)(c) | 259,449 | ||||||
14,494 | Unitil Corp. | 572,803 | ||||||
|
| |||||||
16,801,285 | ||||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) | 1,107,234,472 | |||||||
|
| |||||||
Investments Purchased with Cash Collateral from Securities on Loan |
| |||||||
Money Market Fund—8.8% | ||||||||
97,462,011 | Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(d)(e) (Cost $97,462,011) | 97,462,011 | ||||||
|
| |||||||
Total Investments (Cost $1,187,413,136)—108.8% | 1,204,696,483 | |||||||
Other assets less liabilities—(8.8)% | (97,401,875 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 1,107,294,608 | ||||||
|
|
Investment Abbreviations:
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | Non-income producing security. |
(c) | All or a portion of this security was out on loan at April 30, 2016. |
(d) | The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
(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. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 41 |
|
Statements of Assets and Liabilities
April 30, 2016
PowerShares DWA NASDAQ Momentum Portfolio (DWAQ) | PowerShares Dynamic Market Portfolio (PWC) | PowerShares FTSE RAFI US 1000 Portfolio (PRF) | PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) | |||||||||||||
Assets: | ||||||||||||||||
Unaffiliated investments, at value(a) | $ | 34,929,287 | $ | 143,114,408 | $ | 4,137,443,597 | $ | 1,107,234,472 | ||||||||
Affiliated investments, at value | 43,830 | 63,757 | 95,253,567 | 97,462,011 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total investments, at value | 34,973,117 | 143,178,165 | 4,232,697,164 | 1,204,696,483 | ||||||||||||
Receivables: | ||||||||||||||||
Dividends | 7,882 | 69,077 | 4,704,675 | 468,292 | ||||||||||||
Foreign tax reclaims | 352 | — | 3,391 | 1,636 | ||||||||||||
Investments sold | — | — | 184,215 | 4,218,104 | ||||||||||||
Securities lending | — | — | 136,911 | 371,968 | ||||||||||||
Settlement proceeds | — | — | — | 9 | ||||||||||||
Other assets | 3,333 | 3,233 | 5,586 | 12 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Assets | 34,984,684 | 143,250,475 | 4,237,731,942 | 1,209,756,504 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Liabilities: | ||||||||||||||||
Due to custodian | — | — | 533,362 | 1,829,580 | ||||||||||||
Payables: | ||||||||||||||||
Investments purchased | — | — | — | 2,136,584 | ||||||||||||
Collateral upon return of securities loaned | — | — | 91,230,757 | 97,462,011 | ||||||||||||
Accrued advisory fees | 5,300 | 56,536 | 953,220 | 262,182 | ||||||||||||
Accrued trustees’ and officer’s fees | 16,883 | 30,996 | 119,020 | 43,264 | ||||||||||||
Accrued expenses | 49,221 | 40,870 | 2,495,047 | 728,275 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Liabilities | 71,404 | 128,402 | 95,331,406 | 102,461,896 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets | $ | 34,913,280 | $ | 143,122,073 | $ | 4,142,400,536 | $ | 1,107,294,608 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets Consist of: | ||||||||||||||||
Shares of beneficial interest | $ | 84,667,069 | $ | 434,106,361 | $ | 4,056,231,904 | $ | 1,171,092,759 | ||||||||
Undistributed net investment income (loss) | (28,618 | ) | 347,577 | 10,310,894 | 2,493,309 | |||||||||||
Undistributed net realized gain (loss) | (51,043,028 | ) | (295,284,309 | ) | (194,848,628 | ) | (83,574,807 | ) | ||||||||
Net unrealized appreciation | 1,317,857 | 3,952,444 | 270,706,366 | 17,283,347 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets | $ | 34,913,280 | $ | 143,122,073 | $ | 4,142,400,536 | $ | 1,107,294,608 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shares outstanding (unlimited amount authorized, $0.01 par value) | 500,000 | 2,000,000 | 45,950,000 | 11,350,000 | ||||||||||||
Net asset value | $ | 69.83 | $ | 71.56 | $ | 90.15 | $ | 97.56 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Market price | $ | 69.82 | $ | 71.55 | $ | 90.13 | $ | 97.55 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Unaffiliated investments, at cost | $ | 33,611,430 | $ | 139,161,964 | $ | 3,866,336,835 | $ | 1,089,951,125 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Affiliated investments, at cost | $ | 43,830 | $ | 63,757 | $ | 95,653,963 | $ | 97,462,011 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total investments, at cost | $ | 33,655,260 | $ | 139,225,721 | $ | 3,961,990,798 | $ | 1,187,413,136 | ||||||||
|
|
|
|
|
|
|
| |||||||||
(a) Includes securities on loan with an aggregate value of | $ | — | $ | — | $ | 90,418,569 | $ | 92,893,546 | ||||||||
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 42 |
|
For the year ended April 30, 2016
PowerShares DWA NASDAQ Momentum Portfolio (DWAQ) | PowerShares Dynamic Market Portfolio (PWC) | PowerShares FTSE RAFI US 1000 Portfolio (PRF) | PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) | |||||||||||||
Investment Income: | ||||||||||||||||
Unaffiliated dividend income | $ | 227,687 | $ | 2,675,088 | $ | 107,596,640 | $ | 16,326,759 | ||||||||
Affiliated dividend income | 139 | 233 | 191,053 | 1,569 | ||||||||||||
Securities lending income | — | — | 1,005,872 | 2,634,746 | ||||||||||||
Foreign withholding tax | (252 | ) | (301 | ) | (12,655 | ) | (14,253 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total Income | 227,574 | 2,675,020 | 108,780,910 | 18,948,821 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Expenses: | ||||||||||||||||
Advisory fees | 221,346 | 773,110 | 12,228,875 | 3,251,067 | ||||||||||||
Sub-licensing fees | 42,672 | 46,387 | 3,799,637 | 1,010,169 | ||||||||||||
Accounting & administration fees | 34,762 | 34,794 | 786,805 | 209,139 | ||||||||||||
Professional fees | 28,155 | 33,522 | 89,673 | 41,727 | ||||||||||||
Trustees’ and officer’s fees | 8,480 | 10,569 | 85,861 | 28,514 | ||||||||||||
Custodian & transfer agent fees | 4,902 | 10,453 | 84,473 | 33,161 | ||||||||||||
Other expenses | 16,293 | 23,012 | 223,496 | 57,591 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Expenses | 356,610 | 931,847 | 17,298,820 | 4,631,368 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Less: Waivers | (91,128 | ) | (4,305 | ) | (857,161 | ) | (260,927 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net Expenses | 265,482 | 927,542 | 16,441,659 | 4,370,441 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Investment Income (Loss) | (37,908 | ) | 1,747,478 | 92,339,251 | 14,578,380 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Realized and Unrealized Gain (Loss): | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investment securities | (6,341,759 | ) | (19,488,083 | ) | (29,318,801 | ) | (54,115,609 | ) | ||||||||
In-kind redemptions | 2,075,238 | 18,629,348 | 348,430,270 | 81,441,507 | ||||||||||||
Foreign currencies | — | — | — | (78 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized gain (loss) | (4,266,521 | ) | (858,735 | ) | 319,111,469 | 27,325,820 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net change in unrealized appreciation (depreciation) on investment securities | (2,129,082 | ) | (1,716,563 | ) | (458,584,354 | ) | (101,820,682 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized and unrealized gain (loss) | (6,395,603 | ) | (2,575,298 | ) | (139,472,885 | ) | (74,494,862 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | $ | (6,433,511 | ) | $ | (827,820 | ) | $ | (47,133,634 | ) | $ | (59,916,482 | ) | ||||
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 43 |
|
Statements of Changes in Net Assets
For the years ended April 30, 2016 and 2015
PowerShares DWA NASDAQ Momentum Portfolio (DWAQ) | PowerShares Dynamic Market Portfolio (PWC) | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Operations: | ||||||||||||||||
Net investment income (loss) | $ | (37,908 | ) | $ | 22,805 | $ | 1,747,478 | $ | 1,762,280 | |||||||
Net realized gain (loss) | (4,266,521 | ) | (1,857,809 | ) | (858,735 | ) | 10,422,932 | |||||||||
Net change in unrealized appreciation (depreciation) | (2,129,082 | ) | 5,672,817 | (1,716,563 | ) | (622,185 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | (6,433,511 | ) | 3,837,813 | (827,820 | ) | 11,563,027 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions to Shareholders from: | ||||||||||||||||
Net investment income | (22,077 | ) | — | (1,698,632 | ) | (1,899,933 | ) | |||||||||
Return of capital | (2,759 | ) | — | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (24,836 | ) | — | (1,698,632 | ) | (1,899,933 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Shareholder Transactions: | ||||||||||||||||
Proceeds from shares sold | 35,446,415 | 17,886,325 | 152,722,956 | 389,553,289 | ||||||||||||
Value of shares repurchased | (24,097,986 | ) | (17,435,268 | ) | (176,024,640 | ) | (416,484,985 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from shares transactions | 11,348,429 | 451,057 | (23,301,684 | ) | (26,931,696 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Increase (Decrease) in Net Assets | 4,890,082 | 4,288,870 | (25,828,136 | ) | (17,268,602 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets: | ||||||||||||||||
Beginning of year | 30,023,198 | 25,734,328 | 168,950,209 | 186,218,811 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of year | $ | 34,913,280 | $ | 30,023,198 | $ | 143,122,073 | $ | 168,950,209 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income (loss) at end of year | $ | (28,618 | ) | $ | 8,342 | $ | 347,577 | $ | 161,208 | |||||||
|
|
|
|
|
|
|
| |||||||||
Changes in Shares Outstanding: | ||||||||||||||||
Shares sold | 450,000 | 250,000 | 2,050,000 | 5,300,000 | ||||||||||||
Shares repurchased | (350,000 | ) | (250,000 | ) | (2,350,000 | ) | (5,650,000 | ) | ||||||||
Shares outstanding, beginning of year | 400,000 | 400,000 | 2,300,000 | 2,650,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Shares outstanding, end of year | 500,000 | 400,000 | 2,000,000 | 2,300,000 | ||||||||||||
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 44 |
|
PowerShares FTSE RAFI US 1000 Portfolio (PRF) | PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ) | |||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||
$ | 92,339,251 | $ | 77,118,321 | $ | 14,578,380 | $ | 14,415,497 | |||||||
319,111,469 | 202,181,424 | 27,325,820 | 74,237,548 | |||||||||||
(458,584,354 | ) | 110,266,901 | (101,820,682 | ) | 1,015,098 | |||||||||
|
|
|
|
|
|
|
| |||||||
(47,133,634 | ) | 389,566,646 | (59,916,482 | ) | 89,668,143 | |||||||||
|
|
|
|
|
|
|
| |||||||
(96,826,783 | ) | (73,911,874 | ) | (14,367,669 | ) | (14,188,599 | ) | |||||||
— | — | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||
(96,826,783 | ) | (73,911,874 | ) | (14,367,669 | ) | (14,188,599 | ) | |||||||
|
|
|
|
|
|
|
| |||||||
761,845,771 | 1,355,924,502 | 284,803,033 | 319,485,155 | |||||||||||
(1,033,501,636 | ) | (419,258,912 | ) | (261,733,949 | ) | (195,186,019 | ) | |||||||
|
|
|
|
|
|
|
| |||||||
(271,655,865 | ) | 936,665,590 | 23,069,084 | 124,299,136 | ||||||||||
|
|
|
|
|
|
|
| |||||||
(415,616,282 | ) | 1,252,320,362 | (51,215,067 | ) | 199,778,680 | |||||||||
|
|
|
|
|
|
|
| |||||||
4,558,016,818 | 3,305,696,456 | 1,158,509,675 | 958,730,995 | |||||||||||
|
|
|
|
|
|
|
| |||||||
$ | 4,142,400,536 | $ | 4,558,016,818 | $ | 1,107,294,608 | $ | 1,158,509,675 | |||||||
|
|
|
|
|
|
|
| |||||||
$ | 10,310,894 | $ | 10,571,766 | $ | 2,493,309 | $ | 2,242,185 | |||||||
|
|
|
|
|
|
|
| |||||||
8,600,000 | 15,150,000 | 3,000,000 | 3,150,000 | |||||||||||
(11,950,000 | ) | (4,550,000 | ) | (2,850,000 | ) | (1,900,000 | ) | |||||||
49,300,000 | 38,700,000 | 11,200,000 | 9,950,000 | |||||||||||
|
|
|
|
|
|
|
| |||||||
45,950,000 | 49,300,000 | 11,350,000 | 11,200,000 | |||||||||||
|
|
|
|
|
|
|
|
| 45 |
|
PowerShares DWA NASDAQ Momentum Portfolio (DWAQ)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 75.06 | $ | 64.34 | $ | 55.40 | $ | 51.32 | $ | 53.76 | ||||||||||
Net investment income (loss)(a) | (0.06 | ) | 0.06 | 0.21 | 0.71 | (b) | 0.10 | |||||||||||||
Net realized and unrealized gain (loss) on investments | (5.11 | ) | 10.66 | 9.00 | 4.18 | (2.50 | ) | |||||||||||||
Total from investment operations | (5.17 | ) | 10.72 | 9.21 | 4.89 | (2.40 | ) | |||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.05 | ) | — | (0.27 | ) | (0.81 | ) | (0.04 | ) | |||||||||||
Return of capital | (0.01 | ) | — | — | — | — | ||||||||||||||
Total distributions | (0.06 | ) | — | (0.27 | ) | (0.81 | ) | (0.04 | ) | |||||||||||
Net asset value at end of year | $ | 69.83 | $ | 75.06 | $ | 64.34 | $ | 55.40 | $ | 51.32 | ||||||||||
Market price at end of year(c) | $ | 69.82 | $ | 75.10 | $ | 64.32 | $ | 55.32 | $ | 51.30 | ||||||||||
Net Asset Value Total Return(d) | (6.90 | )% | 16.66 | % | 16.64 | % | 9.75 | % | (4.46 | )% | ||||||||||
Market Price Total Return(d) | (6.96 | )% | 16.76 | % | 16.77 | % | 9.63 | % | (4.48 | )% | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 34,913 | $ | 30,023 | $ | 25,734 | $ | 22,160 | $ | 28,224 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.60 | % | 0.60 | % | 0.60 | %(e) | 0.60 | % | 0.60 | % | ||||||||||
Expenses, prior to Waivers | 0.81 | % | 0.96 | % | 0.91 | %(e) | 0.95 | % | 0.93 | % | ||||||||||
Net investment income (loss), after Waivers | (0.09 | )% | 0.09 | % | 0.32 | % | 1.42 | %(b) | 0.22 | % | ||||||||||
Portfolio turnover rate(f) | 118 | % | 154 | % | 296 | % | 118 | % | 99 | % |
(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 $4 per share owned of Warner Chilcott PLC on August 29, 2012. Net investment income per share and the ratio of net investment income to average net assets excluding the special dividend are $0.43 and 0.87%, respectively. |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized. |
(e) | 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 companies’ 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 investment companies the Fund invests in. The effect of the estimated investment companies’ expenses that the Fund bears indirectly is included in the Fund’s total return. |
(f) | Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the fiscal year ended April 30, 2014, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change. |
PowerShares Dynamic Market Portfolio (PWC)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 73.46 | $ | 70.27 | $ | 56.26 | $ | 46.78 | $ | 48.26 | ||||||||||
Net investment income(a) | 0.82 | 0.68 | 0.60 | 0.82 | 0.44 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (1.91 | ) | 3.25 | 13.99 | 9.51 | (1.52 | ) | |||||||||||||
Total from investment operations | (1.09 | ) | 3.93 | 14.59 | 10.33 | (1.08 | ) | |||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.81 | ) | (0.74 | ) | (0.58 | ) | (0.85 | ) | (0.40 | ) | ||||||||||
Net asset value at end of year | $ | 71.56 | $ | 73.46 | $ | 70.27 | $ | 56.26 | $ | 46.78 | ||||||||||
Market price at end of year(b) | $ | 71.55 | $ | 73.40 | $ | 70.27 | $ | 56.23 | $ | 46.75 | ||||||||||
Net Asset Value Total Return(c) | (1.50 | )% | 5.58 | % | 26.09 | % | 22.39 | % | (2.12 | )% | ||||||||||
Market Price Total Return(c) | (1.43 | )% | 5.49 | % | 26.15 | % | 22.40 | % | (2.14 | )% | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 143,122 | $ | 168,950 | $ | 186,219 | $ | 140,658 | $ | 128,644 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.60 | % | 0.59 | % | 0.60 | % | 0.60 | % | 0.60 | % | ||||||||||
Expenses, prior to Waivers | 0.60 | % | 0.59 | % | 0.60 | % | 0.60 | % | 0.62 | % | ||||||||||
Net investment income, after Waivers | 1.13 | % | 0.93 | % | 0.94 | % | 1.68 | % | 1.00 | % | ||||||||||
Portfolio turnover rate(d) | 231 | % | 237 | % | 244 | % | 166 | % | 133 | % |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 46 |
|
Financial Highlights (continued)
PowerShares FTSE RAFI US 1000 Portfolio (PRF)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 92.45 | $ | 85.42 | $ | 71.42 | $ | 59.73 | $ | 60.72 | ||||||||||
Net investment income(a) | 1.93 | 1.72 | 1.45 | 1.31 | 1.12 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (2.23 | ) | 6.93 | 13.89 | 11.66 | (0.99 | ) | |||||||||||||
Total from investment operations | (0.30 | ) | 8.65 | 15.34 | 12.97 | 0.13 | ||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (2.00 | ) | (1.62 | ) | (1.34 | ) | (1.28 | ) | (1.12 | ) | ||||||||||
Net asset value at end of year | $ | 90.15 | $ | 92.45 | $ | 85.42 | $ | 71.42 | $ | 59.73 | ||||||||||
Market price at end of year(b) | $ | 90.13 | $ | 92.43 | $ | 85.37 | $ | 71.42 | $ | 59.72 | ||||||||||
Net Asset Value Total Return(c) | (0.23 | )% | 10.19 | % | 21.68 | % | 22.06 | % | 0.41 | % | ||||||||||
Market Price Total Return(c) | (0.24 | )% | 10.23 | % | 21.61 | % | 22.09 | % | 0.41 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 4,142,401 | $ | 4,558,017 | $ | 3,305,696 | $ | 1,778,450 | $ | 1,388,661 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.39 | % | 0.39 | % | 0.39 | % | 0.39 | % | 0.39 | % | ||||||||||
Expenses, prior to Waivers | 0.41 | % | 0.41 | % | 0.41 | % | 0.43 | % | 0.43 | % | ||||||||||
Net investment income, after Waivers | 2.19 | % | 1.92 | % | 1.84 | % | 2.10 | % | 2.00 | % | ||||||||||
Portfolio turnover rate(d) | 12 | % | 10 | % | 12 | % | 13 | % | 6 | % |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio (PRFZ)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 103.44 | $ | 96.35 | $ | 77.76 | $ | 66.71 | $ | 70.66 | ||||||||||
Net investment income(a) | 1.25 | 1.38 | 0.98 | 1.13 | 0.73 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (5.93 | ) | 7.04 | 18.52 | 11.08 | (4.04 | ) | |||||||||||||
Total from investment operations | (4.68 | ) | 8.42 | 19.50 | 12.21 | (3.31 | ) | |||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (1.20 | ) | (1.33 | ) | (0.91 | ) | (1.16 | ) | (0.64 | ) | ||||||||||
Net asset value at end of year | $ | 97.56 | $ | 103.44 | $ | 96.35 | $ | 77.76 | $ | 66.71 | ||||||||||
Market price at end of year(b) | $ | 97.55 | $ | 103.45 | $ | 96.38 | $ | 77.67 | $ | 66.72 | ||||||||||
Net Asset Value Total Return(c) | (4.49 | )% | 8.80 | % | 25.22 | % | 18.56 | % | (4.60 | )% | ||||||||||
Market Price Total Return(c) | (4.52 | )% | 8.78 | % | 25.40 | % | 18.41 | % | (4.56 | )% | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 1,107,295 | $ | 1,158,510 | $ | 958,731 | $ | 563,763 | $ | 463,645 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.39 | % | 0.39 | % | 0.39 | % | 0.39 | % | 0.39 | % | ||||||||||
Expenses, prior to Waivers | 0.41 | % | 0.42 | % | 0.42 | % | 0.43 | % | 0.44 | % | ||||||||||
Net investment income, after Waivers | 1.30 | % | 1.39 | % | 1.08 | % | 1.64 | % | 1.17 | % | ||||||||||
Portfolio turnover rate(d) | 28 | % | 26 | % | 31 | % | 30 | % | 15 | % |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 47 |
|
PowerShares Exchange-Traded Fund Trust
April 30, 2016
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, 2016, the Trust offered fifty-three portfolios. This report includes the following portfolios:
Full Name | Short Name | |
PowerShares DWA NASDAQ Momentum Portfolio (DWAQ) | “DWA NASDAQ Momentum Portfolio” | |
PowerShares Dynamic Market Portfolio (PWC) | “Dynamic Market 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 (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 NYSE Arca, Inc., except for Shares of FTSE RAFI US 1500 Small-Mid Portfolio, which are listed and traded on The NASDAQ Stock Market LLC.
The market price of each Share 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 principally in exchange for the deposit or delivery of a basket of securities (“Deposit Securities”). 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 | Underlying Index | |
DWA NASDAQ Momentum Portfolio | Dorsey Wright® NASDAQ Technical Leaders Index | |
Dynamic Market Portfolio | Dynamic Market 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. The following is a summary of the significant accounting policies followed by the Funds in preparation of their financial statements.
A. Security Valuation
Securities, including restricted securities, are valued according to the following policies:
A security listed or traded on an exchange (except convertible securities) 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. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked 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 asked prices. For purposes of determining NAV per Share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
| 48 |
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Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day NAV per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the 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.
Debt obligations (including convertible securities) 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 (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Securities with a demand feature exercisable within one to seven days are valued at par. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts’) prices 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 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 Invesco PowerShares Capital Management LLC (the “Adviser”) determines 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’ prices 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. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith following procedures approved by the Board of Trustees. Issuer-specific events, market trends, bid/asked 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.
Each Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
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 investing strategies that seek returns in excess of their Underlying Indexes. 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.
Equity Risk. Equity risk is the risk that the value of the securities that each Fund holds will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities that a 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 securities a Fund holds; the price of securities 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 securities a Fund holds. In addition, securities 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.
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Industry Concentration Risk. In following its methodology, each Fund’s Underlying Index from time to time will be concentrated to a significant degree in securities of issuers located in a single industry or a sector. To the extent that an Underlying Index concentrates in the securities of issuers in a particular industry or sector, each Fund will also concentrate its investments to approximately the same extent. By concentrating its investments in an industry or sector, a Fund may face more risks than if it were diversified broadly over numerous industries or sectors. In addition, at times, an industry or sector may be out of favor and underperform other industries or the market as a whole. Any factors detrimental to the performance of such industry or sector will disproportionately impact a Fund’s NAV.
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.
Momentum Investing Risk. DWA NASDAQ Momentum Portfolio employs a “momentum” style of investing that is subject to the risk that the securities may be more volatile than the market as a whole, or that the returns on securities that have previously exhibited price momentum are less than returns on other styles of investing. Momentum can turn quickly, and stocks that previously exhibited high momentum may not experience continued positive momentum. In addition, there may be periods when the momentum style of investing is out of favor and therefore, the investment performance of the Fund may suffer.
Small and Medium Capitalization Company Risk. For FTSE RAFI US 1500 Small-Mid Portfolio, 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.
Portfolio Turnover Risk. The Funds may engage in frequent trading of their portfolio securities in connection with the rebalancing or adjustment of their respective Underlying Index. A portfolio turnover rate of 200%, for example, is equivalent to a Fund buying and selling all of its securities two times during the course of a year. A high portfolio turnover rate (such as 100% or more) could result in high brokerage costs for a Fund. While a high portfolio turnover rate can result in an increase in taxable capital gain distributions to a Fund’s shareholders, each Fund will seek to utilize an in-kind creation and redemption mechanism to minimize realization of capital gains to the extent possible.
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.
Each Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed each Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
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 Transactions and Investment Income
Investment transactions are accounted for on a trade date basis. Realized gains and losses from the sale or disposition of securities are computed on the specific identified cost basis. Interest income is recorded on the accrual basis. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Realized gains, dividends and interest received by a Fund may give rise to withholding and other taxes imposed by foreign countries. Tax conventions between certain countries and the United States may reduce or eliminate such taxes.
The Funds may periodically participate in litigation related to each Fund’s investments. As such, the Funds may receive proceeds from litigation settlements. Any proceeds received are included in the Statements of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Corporate actions (including cash dividends) are recorded net of non-reclaimable foreign tax withholdings on the ex-date.
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Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statements of Operations and the Statements of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of each Fund’s net asset value and, accordingly, they reduce each Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statements of Operations and the Statements of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between each Fund and the Adviser.
E. Country Determination
For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the Adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
F. 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 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 (the “Independent Trustees”) or the Adviser, expenses incurred in connection with the Board members’ services, including travel expenses and legal fees of counsel for the Independent Trustees, acquired fund fees and expenses, if any, 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 such investment companies’ expenses are included in the realized and unrealized gain or loss on the investments in the investment companies.
G. 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. Generally, 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 federal 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 year-end.
H. Securities Lending
During the fiscal year ended April 30, 2016, FTSE RAFI US 1000 Portfolio and FTSE RAFI US 1500 Small-Mid Portfolio participated in securities lending. Each Fund loaned portfolio securities having a market value up to one-third of each Fund’s total assets. Such loans are secured by cash collateral equal to no less than 102% (105% for international securities) 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 Schedules of Investments. Each Fund bears the risk of loss with respect to the investment of collateral. 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. When loaning securities, each Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to each 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 failed to return the securities. The securities loaned are subject to termination at the option of the borrower or each Fund. Upon termination, the borrower will return to each Fund the securities loaned and each Fund will return the collateral. 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. Each Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to each Fund. Some of these losses may be indemnified by the lending agent. Each 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, are included in Securities lending income on the Statements of Operations. The aggregate value of securities out on loan, if any, is shown on the Statements of Assets and Liabilities.
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Note 3. Investment Advisory Agreement and Other Agreements
The Trust has entered into an Investment Advisory Agreement with the Adviser on behalf of each Fund, 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. Pursuant to that Investment Advisory Agreement, each of DWA NASDAQ Momentum Portfolio and Dynamic Market Portfolio has agreed to pay the Adviser an annual fee of 0.50% of the Fund’s average daily net assets, and each of FTSE RAFI US 1000 Portfolio and 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 Trust also has entered into an Amended and Restated Excess Expense Agreement (the “Expense Agreement”) with the Adviser on behalf of each Fund. For the FTSE RAFI US 1000 Portfolio and the FTSE RAFI US 1500 Small-Mid 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, offering costs, taxes, acquired fund fees and expenses, if any, and extraordinary expenses) of each Fund from exceeding 0.39% of the Fund’s average daily net assets per year (the “Expense Cap”), through at least August 31, 2017. Offering costs excluded from the Expense Cap for these Funds 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 DWA NASDAQ Momentum Portfolio and the Dynamic Market 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, taxes, acquired fund fees and expenses, if any, and extraordinary expenses) of each Fund from exceeding 0.60% of the Fund’s average daily net assets per year, through at least August 31, 2017. Unless the Adviser continues the Expense Agreement, it will terminate on August 31, 2017. During its term, the Expense Agreement cannot be terminated or amended to increase the Expense Cap without approval of the Board of Trustees.
Further, through August 31, 2018, the Adviser has contractually agreed to waive a portion of each Fund’s management fee in an amount equal to 100% of the net advisory fees an affiliate of the Adviser receives that are attributable to certain of the Fund’s investments in money market funds managed by that affiliate (excluding investments of cash collateral from securities lending). The Adviser cannot discontinue this waiver prior to its expiration. This agreement is not subject to recapture by the Adviser.
For the fiscal year ended April 30, 2016, the Adviser waived fees and/or paid Fund expenses for each Fund in the following amounts:
DWA NASDAQ Momentum Portfolio | $ | 91,128 | ||
Dynamic Market Portfolio | 4,305 | |||
FTSE RAFI US 1000 Portfolio | 857,161 | |||
FTSE RAFI US 1500 Small-Mid Portfolio | 260,927 |
For FTSE RAFI US 1000 Portfolio and 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, 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 DWA NASDAQ Momentum Portfolio and Dynamic Market Portfolio, the expenses borne by the Adviser are not subject to recapture.
For the following Funds, the amounts available for potential future recapture by the Adviser under the Expense Agreement and the expiration schedule at April 30, 2016 are as follows:
Total Potential Recapture Amounts | Potential Recapture Amounts Expiring | |||||||||||||||
4/30/17 | 4/30/18 | 4/30/19 | ||||||||||||||
FTSE RAFI US 1000 Portfolio | $ | 2,300,891 | $ | 637,211 | $ | 811,780 | $ | 851,900 | ||||||||
FTSE RAFI US 1500 Small-Mid Portfolio | 853,743 | 273,970 | 320,530 | 259,243 |
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 Funds are not charged any fees pursuant to the Distribution Agreement. 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 | |
DWA NASDAQ Momentum Portfolio | Dorsey Wright & Associates, LLC | |
Dynamic Market Portfolio | NYSE Group, Inc. | |
FTSE RAFI US 1000 Portfolio | FTSE International Ltd. | |
FTSE RAFI US 1500 Small-Mid Portfolio | FTSE International Ltd. |
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Each Underlying Index name trademark is owned by its respective Licensor. These trademarks have been licensed to the Adviser for use by 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 the 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. Investments in Affiliates
The Adviser and Invesco Mortgage Capital, Inc. REIT are wholly-owned subsidiaries of Invesco Ltd. and therefore, Invesco Ltd. and Invesco Mortgage Capital, Inc. REIT are considered to be affiliated with the Funds. The table below shows FTSE RAFI US 1000 Portfolio’s transactions in, and earnings from, its investments in affiliates for the fiscal year ended April 30, 2016.
FTSE RAFI US 1000 Portfolio
Value April 30, 2015 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain (Loss) | Value April 30, 2016 | Dividend Income | ||||||||||||||||||||||
Invesco Ltd. | $ | 3,386,416 | $ | 1,187,589 | $ | (568,820 | ) | $ | (937,869 | ) | $ | 80,447 | $ | 3,147,763 | $ | 86,395 | ||||||||||||
Invesco Mortgage Capital, Inc. REIT | 898,913 | 245,110 | (121,810 | ) | (131,337 | ) | (15,829 | ) | 875,047 | 98,853 | ||||||||||||||||||
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Total Investments in Affiliates | $ | 4,285,329 | $ | 1,432,699 | $ | (690,630 | ) | $ | (1,069,206 | ) | $ | 64,618 | $ | 4,022,810 | $ | 185,248 | ||||||||||||
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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 a 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, 2016, all of the securities in each Fund were valued based on Level 1 inputs (see the Schedules 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.
Investments in Securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
FTSE RAFI US 1000 Portfolio | ||||||||||||||||
Equity Securities | $ | 4,232,524,983 | $ | — | $ | 172,181 | $ | 4,232,697,164 | ||||||||
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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, 2016 and 2015:
2016 | 2015 | |||||||||||||||
Ordinary Income | Return of Capital | Ordinary Income | Return of Capital | |||||||||||||
DWA NASDAQ Momentum Portfolio | $ | 22,077 | $ | 2,759 | $ | — | $ | — | ||||||||
Dynamic Market Portfolio | 1,698,632 | — | 1,899,933 | — | ||||||||||||
FTSE RAFI US 1000 Portfolio | 96,826,783 | — | 73,911,874 | — | ||||||||||||
FTSE RAFI US 1500 Small-Mid Portfolio | 14,367,669 | — | 14,188,599 | — |
Tax Components of Net Assets at Fiscal Year-End:
Undistributed Ordinary Income | Temporary Book/Tax Differences | Net Unrealized Appreciation— Investment Securities | Capital Loss Carryforwards | Late-Year Ordinary/ Post-October Deferrals* | Shares of Beneficial Interest | Total Net Assets | ||||||||||||||||||||||
DWA NASDAQ Momentum Portfolio** | $ | — | $ | (16,024 | ) | $ | 1,298,138 | $ | (47,309,750 | ) | $ | (3,726,153 | ) | $ | 84,667,069 | $ | 34,913,280 | |||||||||||
Dynamic Market Portfolio | 377,302 | (29,725 | ) | 3,871,857 | (286,013,637 | ) | (9,190,085 | ) | 434,106,361 | 143,122,073 | ||||||||||||||||||
FTSE RAFI US 1000 Portfolio | 10,420,918 | (110,024 | ) | 232,856,625 | (126,204,238 | ) | (30,794,649 | ) | 4,056,231,904 | 4,142,400,536 | ||||||||||||||||||
FTSE RAFI US 1500 Small-Mid Portfolio | 3,083,333 | (40,462 | ) | 2,074,564 | (16,915,709 | ) | (51,999,877 | ) | 1,171,092,759 | 1,107,294,608 |
* | Includes net 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”), that are deemed to arise on the first business day of each Fund’s next taxable year. |
** | The DWA NASDAQ Momentum Portfolio incurred and will elect to defer Late-Year Ordinary Losses of $12,594 and Post-October Capital Losses of $3,713,559. |
Capital loss carryforwards are calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforwards actually available for the Funds to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. 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. Capital loss carryforwards with no expiration date 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 carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The following table presents available capital loss carryforwards and expiration dates for each Fund as of April 30, 2016:
Post-effective/no expiration | ||||||||||||||||||||||||||||
2017 | 2018 | 2019 | Short-Term | Long-Term | Total* | Expired | ||||||||||||||||||||||
DWA NASDAQ Momentum Portfolio | $ | 15,764,010 | $ | 14,947,690 | $ | 3,683,431 | $ | 12,914,619 | $ | — | $ | 47,309,750 | $ | 11,353,752 | ||||||||||||||
Dynamic Market Portfolio | 96,635,542 | 104,214,879 | 15,461,574 | 69,701,642 | — | 286,013,637 | 39,899,556 | |||||||||||||||||||||
FTSE RAFI US 1000 Portfolio | 37,905,805 | 49,808,238 | 38,490,195 | — | — | 126,204,238 | — | |||||||||||||||||||||
FTSE RAFI US 1500 Small-Mid Portfolio | 4,933,892 | 5,168,127 | 2,475,894 | 1,102,983 | 3,234,813 | 16,915,709 | — |
* | Capital loss carryforwards as of the date listed above are reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
Note 7. Investment Transactions
For the fiscal year ended April 30, 2016, the cost of securities purchased and proceeds from sales of securities (other than short-term securities, U.S. Treasury obligations, money market funds and in-kind transactions, if any) were as follows:
Purchases | Sales | |||||||
DWA NASDAQ Momentum Portfolio | $ | 52,301,867 | $ | 52,716,531 | ||||
Dynamic Market Portfolio | 356,186,002 | 354,929,017 | ||||||
FTSE RAFI US 1000 Portfolio | 491,780,226 | 495,204,887 | ||||||
FTSE RAFI US 1500 Small-Mid Portfolio | 313,227,973 | 311,994,849 |
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For the fiscal year ended April 30, 2016, in-kind transactions associated with creations and redemptions were as follows:
Cost of Securities Received | Value of Securities Delivered | |||||||
DWA NASDAQ Momentum Portfolio | $ | 35,452,438 | $ | 23,742,892 | ||||
Dynamic Market Portfolio | 152,548,573 | 176,990,407 | ||||||
FTSE RAFI US 1000 Portfolio | 760,898,618 | 1,028,891,810 | ||||||
FTSE RAFI US 1500 Small-Mid Portfolio | 283,154,015 | 258,847,653 |
Gains (losses) on in-kind transactions are generally not considered taxable gains (losses) for federal income tax purposes.
At April 30, 2016, the aggregate cost and the net unrealized appreciation of investments for tax purposes were as follows:
Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation | Cost | |||||||||||||
DWA NASDAQ Momentum Portfolio | $ | 2,041,516 | $ | (743,378 | ) | $ | 1,298,138 | $ | 33,674,979 | |||||||
Dynamic Market Portfolio | 10,254,486 | (6,382,629 | ) | 3,871,857 | 139,306,308 | |||||||||||
FTSE RAFI US 1000 Portfolio | 432,019,053 | (199,162,428 | ) | 232,856,625 | 3,999,840,539 | |||||||||||
FTSE RAFI US 1500 Small-Mid Portfolio | 124,908,406 | (122,833,842 | ) | 2,074,564 | 1,202,621,919 |
Note 8. Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of in-kind transactions and expired capital loss carryforwards on April 30, 2016, 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, 2016, the reclassifications were as follows:
Undistributed Net Investment Income (Loss) | Undistributed Net Realized Gain (Loss) | Shares of Beneficial Interest | ||||||||||
DWA NASDAQ Momentum Portfolio | $ | 23,025 | $ | 9,311,346 | $ | (9,334,371 | ) | |||||
Dynamic Market Portfolio | 137,523 | 21,501,868 | (21,639,391 | ) | ||||||||
FTSE RAFI US 1000 Portfolio | 4,226,660 | (335,088,658 | ) | 330,861,998 | ||||||||
FTSE RAFI US 1500 Small-Mid Portfolio | 40,413 | (78,561,093 | ) | 78,520,680 |
Note 9. Trustees’ and Officer’s Fees
Trustees’ and Officer’s Fees include amounts accrued by the Funds to pay remuneration to the Independent Trustees and an Officer of the Trust. The Trustee who is an “interested person” of the Trust does 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. Obligations under the Plan represent unsecured claims against the general assets of the Funds.
Note 10. Capital
Shares are created and redeemed by each Fund only in Creation Units of 50,000 Shares. Only Authorized Participants are permitted to purchase or redeem Creation Units from the Funds. Such transactions are principally permitted in exchange for Deposit Securities, with a balancing cash component to equate the transaction to the NAV per Share of a Fund of the Trust on the transaction date. However, for all Funds, cash in an amount equivalent to the value of certain securities may be substituted, generally when the securities are not available in sufficient quantity for delivery, not eligible for trading by the Authorized Participant or as a result of other market circumstances.
To the extent that the Funds permit transactions in exchange for Deposit Securities, each Fund may issue Shares in advance of receipt of Deposit Securities subject to various conditions, including a requirement to maintain on deposit with the Trust cash at least equal to 105% of the market value of the missing Deposit Securities. In accordance with the Trust’s Participant Agreement, Creation Units will be issued to an Authorized Participant, notwithstanding the fact that the corresponding Deposit Securities have not been received in
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part or in whole, in reliance on the undertaking of the Authorized Participant to deliver the missing Deposit Securities as soon as possible, which undertaking shall be secured by the Authorized Participant’s delivery and maintenance of collateral consisting of cash in the form of U.S. dollars in immediately available funds having a value (marked-to-market daily) at least equal to 105%, which the Adviser may change from time to time, of the value of the missing Deposit Securities.
Transactions in each Fund’s Shares are disclosed in detail in 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.
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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 DWA NASDAQ Momentum Portfolio, PowerShares Dynamic Market 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, 2016, the results of each of their operations for the year then ended, the changes 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, 2016 by correspondence with the custodian and brokers, and the application of alternative auditing procedures where confirmations of security purchases have not been received, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Chicago, IL
June 23, 2016
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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, 2016.
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 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. If transaction costs and indirect expenses were included, your costs would have been higher.
Beginning Account Value November 1, 2015 | Ending Account Value April 30, 2016 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period(1) | |||||||||||||
PowerShares DWA NASDAQ Momentum Portfolio (DWAQ) | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 919.03 | 0.60 | % | $ | 2.86 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.88 | 0.60 | 3.02 | ||||||||||||
PowerShares Dynamic Market Portfolio (PWC) | ||||||||||||||||
Actual | 1,000.00 | 958.69 | 0.60 | 2.92 | ||||||||||||
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 | 1,023.11 | 0.39 | 1.96 | ||||||||||||
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 | 1,011.21 | 0.39 | 1.95 | ||||||||||||
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-month period ended April 30, 2016. 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. |
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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, 2016:
Qualified Dividend Income* | Dividends Received Deduction* | |||||||||
PowerShares DWA NASDAQ Momentum Portfolio | 89 | % | 89 | % | ||||||
PowerShares Dynamic Market Portfolio | 100 | % | 100 | % | ||||||
PowerShares FTSE RAFI US 1000 Portfolio | 100 | % | 100 | % | ||||||
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio | 83 | % | 76 | % |
* | The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year. |
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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, 2016.
Name, Address and Year of Birth 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—1958 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Chairman of the Nominating and Governance Committee and Trustee | Chairman of the Nominating and Governance Committee and 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). | 124 | None | |||||
Todd J. Barre—1957 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Trustee | Since 2010 | Assistant Professor of Business, Trinity Christian College (2010-2016); 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. | 124 | None | |||||
Marc M. Kole—1960 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Chairman of the Audit Committee and Trustee | Chairman of the Audit Committee since 2008; and Trustee since 2006 | Senior Director of Finance, By The Hand Club for Kids (2015-Present); formerly: Chief Financial Officer, Hope Network (social services) (2008-2012); Assistant Vice President and Controller, Priority Health (health insurance) (2005-2008); Senior Vice President of Finance, United Healthcare (2004-2005); Chief Accounting Officer, Senior Vice President of Finance, Oxford Health Plans (2000-2004); Audit Partner, Arthur Andersen LLP (1996-2000). | 124 | None | |||||
Yung Bong Lim—1964 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Chairman of the Investment Oversight Committee and Trustee | Chairman of the Investment Oversight Committee since 2014; Trustee since 2013 | Managing Partner, Residential Dynamics Group LLC (2008-Present); formerly, Managing Director, Citadel Investment Group, L.L.C. (1999-2007). | 124 | 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, 2016, the “Fund Family” consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 71 portfolios advised by the Adviser. |
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Trustees and Officers (continued)
Name, Address and Year of Birth 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 | |||||
Philip M. Nussbaum—1961 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Trustee | Since 2003 | Chairman, Performance Trust Capital Partners (2004-Present). | 124 | None | |||||
Gary R. Wicker—1961 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Trustee | Since 2013 | Senior Vice President of Global Finance and Chief Financial Officer at RBC Ministries (publishing company) (2013-Present); formerly, Executive Vice President and Chief Financial Officer, Zondervan Publishing (a division of Harper Collins/NewsCorp) (2007-2012); Senior Vice President and Group Controller (2005-2006), Senior Vice President and Chief Financial Officer (2003-2004), Chief Financial Officer (2001-2003), Vice President, Finance and Controller (1999-2001) and Assistant Controller (1997-1999), divisions of The Thomson Corporation (information services provider). | 124 | None | |||||
Donald H. Wilson—1959 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Chairman of the Board and Trustee | Chairman since 2012; Trustee since 2006 | Chairman and Chief Executive Officer, Stone Pillar Advisors, Ltd. (2010-Present); formerly, Chairman, President and Chief Executive Officer, Community Financial Shares, Inc. and Community Bank—Wheaton/Glen Ellyn (subsidiary) (2013-2015); 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). | 124 | 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, 2016, the “Fund Family” consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 71 portfolios advised by the Adviser. |
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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 Year of Birth 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 Trustee | Other Directorships Held by Non-Independent Trustees During the Past 5 Years | |||||
Kevin M. Carome—1956 Invesco Ltd. Two Peachtree Pointe, 1555 Peachtree St., N.E., Suite 1800 Atlanta, GA 30309 | Trustee | Since 2010 | Senior Managing Director, Secretary and General Counsel, Invesco Ltd. (2007-Present); Director, Invesco Advisers, Inc. (2009-Present); Director, Invesco Finance PLC, and Invesco Holding Company Limited; Director and Executive Vice President, Invesco Finance, Inc., Invesco Group Services, Inc., Invesco Investments (Bermuda) Ltd., Invesco North American Holdings, Inc., IVZ, Inc. and Invesco Asset Management (Bermuda) Ltd.; Manager, Horizon Flight Works LLC; Director and Secretary, IVZ Bahamas Private Limited; formerly, Director, INVESCO Funds Group, Inc., Senior Vice President, Secretary and General Counsel, Invesco Advisers, 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. | 124 | 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, 2016, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 71 portfolios advised by the Adviser. |
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Trustees and Officers (continued)
Name, Address and Year of Birth of Executive Officers | Position(s) Held with Trust | Length of Time Served* | Principal Occupation(s) During Past 5 Years | |||
Daniel E. Draper—1968 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | President and Principal Executive Officer | Since 2015 | President and Principal Executive Officer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2015-Present); Chief Executive Officer (2016-Present) and Managing Director (2013-Present), Invesco PowerShares Capital Management LLC; Senior Vice President, Invesco Distributors, Inc. (2014-Present); formerly, Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-2015) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-2015); Managing Director, Credit Suisse Asset Management (2010-2013) and Lyxor Asset Management/Societe Generale (2007-2010). | |||
Steven M. Hill—1964 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Vice President and Treasurer | Since 2013 | Vice President and Treasurer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Global ETF Administration, Invesco PowerShares Capital Management LLC (2011-Present); Principal Financial and Accounting Officer—Investment Pools, Invesco PowerShares Capital Management LLC (2015-Present); formerly, Senior Managing Director and Chief Financial Officer, Destra Capital Management LLC and its subsidiaries (2010-2011); Chief Financial Officer, Destra Investment Trust and Destra Investment Trust II (2010-2011); Senior Managing Director, Claymore Securities, Inc. (2003-2010); and Chief Financial Officer, Claymore sponsored mutual funds (2003-2010). | |||
Peter Hubbard—1981 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Vice President | Since 2009 | Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2009-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Vice President and Director of Portfolio Management, Invesco PowerShares Capital Management LLC (2010-Present); formerly, Vice President of Portfolio Management, Invesco PowerShares Capital Management LLC (2008-2010); 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). | |||
Christopher Joe—1969 Invesco PowerShares Capital Management LLC 11 Greenway Plaza, Suite 1000 Houston, TX 77046-1173 | Chief Compliance Officer | Since 2012 | Chief Compliance Officer of Invesco PowerShares Capital Management LLC (2015-Present); Chief Compliance Officer of PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2012-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); formerly, Chief Compliance Officer, Invesco Investment Advisers, LLC (registered investment adviser) (2010–2013), U.S. Compliance Director, Invesco, Ltd. (2006-2014) and Deputy Chief Compliance Officer of Invesco Advisers, Inc. (2014-2015). |
* | 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. |
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Trustees and Officers (continued)
Name, Address and Year of Birth of Executive Officers | Position(s) Held with Trust | Length of Time Served* | Principal Occupation(s) During Past 5 Years | |||
Sheri Morris—1964 Invesco Management Group, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046 | Vice President | Since 2012 | President, Principal Executive Officer and Treasurer, The Invesco Funds (2016-Present); Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) (2009-Present) and Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2012-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); formerly, Vice President, Treasurer and Principal Financial Officer, The Invesco Funds (2008-2016); 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 (2011-2013); Vice President, Invesco Aim 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—1974 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Secretary | Since 2011 | Secretary, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2011-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Legal (2010-Present) and Secretary (2015-Present), 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). | |||
Rudolf E. Reitmann��1971 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Vice President | Since 2013 | Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Global Exchange Traded Funds Services, Invesco PowerShares Capital Management LLC (2013-Present). | |||
David Warren—1957 Invesco Canada Ltd. 5140 Yonge Street, Suite 800 Toronto, Ontario M2N 6X7 | Vice President | Since 2009 | Vice President, 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 (2009-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Managing Director—Chief Administrative Officer, Americas, Invesco PowerShares Capital Management LLC; Senior Vice President, Invesco Advisers, Inc. (2009-Present); Director, Invesco Inc. (2009-Present); Senior Vice President, Invesco Management Group, Inc. (2007-Present); Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (formerly, Invesco Trimark Ltd.); Chief Administrative Officer, North American Retail, Invesco Ltd. (2007-Present); Director, Invesco Corporate Class Inc. (2014-Present); Director, Invesco Global Direct Real Estate Feeder GP Ltd. (2015-Present); Director, Invesco Canada Holdings Inc. (2002-Present); Director, Invesco Financial Services Ltd. / Services Financiers Invesco Ltée and Trimark Investments Ltd./Placements Trimark Ltée (2014-Present); Director, Invesco IP Holdings (Canada) Ltd. (2016-Present); Director, Invesco Global Direct Real Estate GP Ltd. (2015-Present); formerly, Executive Vice President and Chief Financial Officer, Invesco Inc. (2009-2015); Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (formerly, Invesco Trimark Ltd.) (2000-2011). |
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. |
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Board Considerations Regarding Continuation of Investment Advisory Agreement
At a meeting held on April 14, 2016, 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 51 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 Momentum Portfolio
PowerShares DWA Basic Materials Momentum Portfolio
PowerShares DWA Consumer Cyclicals Momentum Portfolio
PowerShares DWA Consumer Staples Momentum Portfolio
PowerShares DWA Energy Momentum Portfolio
PowerShares DWA Financial Momentum Portfolio
PowerShares DWA Healthcare Momentum Portfolio
PowerShares DWA Industrials Momentum Portfolio
PowerShares DWA NASDAQ Momentum Portfolio
PowerShares DWA Technology Momentum Portfolio
PowerShares DWA Utilities Momentum Portfolio
PowerShares Dynamic Biotechnology & Genome Portfolio
PowerShares Dynamic Building & Construction Portfolio
PowerShares Dynamic Energy Exploration & Production Portfolio
PowerShares Dynamic Food & Beverage Portfolio
PowerShares Dynamic Large Cap Growth Portfolio
PowerShares Dynamic Large Cap Value Portfolio
PowerShares Dynamic Leisure and Entertainment Portfolio
PowerShares Dynamic Market Portfolio
PowerShares Dynamic Media Portfolio
PowerShares Dynamic Networking Portfolio
PowerShares Dynamic Oil & Gas Services Portfolio
PowerShares Dynamic Pharmaceuticals Portfolio
PowerShares Dynamic Retail Portfolio
PowerShares Dynamic Semiconductors Portfolio
PowerShares Dynamic Software Portfolio
PowerShares Financial Preferred Portfolio
PowerShares FTSE RAFI US 1000 Portfolio
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio
PowerShares Global Listed Private Equity Portfolio
PowerShares Golden Dragon China Portfolio
PowerShares High Yield Equity Dividend AchieversTM Portfolio
PowerShares International Dividend AchieversTM Portfolio
PowerShares Russell Top 200 Equal Weight Portfolio
PowerShares Russell Top 200 Pure Growth Portfolio
PowerShares Russell Top 200 Pure Value Portfolio
PowerShares Russell Midcap Equal Weight Portfolio
PowerShares Russell Midcap Pure Growth Portfolio
PowerShares Russell Midcap Pure Value Portfolio
PowerShares Russell 2000 Equal Weight Portfolio
PowerShares Russell 2000 Pure Growth Portfolio
PowerShares Russell 2000 Pure Value Portfolio
PowerShares S&P 500® 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 for each Fund, (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 to and amounts paid by other registered investment companies and (vii) any benefits realized by the Adviser from its relationship with each Fund.
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 staffing, including operational support 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 and/or oversight of execution of portfolio transactions on behalf of the Funds. The Trustees also reviewed information on the performance of the Funds and their underlying indexes for the one-year, three-year, five-year, ten-year and since-inception periods ended December 31, 2015, as applicable, including reports for each of those periods 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 certain Funds and their underlying indexes. In reviewing the tracking error reports, the Trustees considered information provided by Ibbotson Associates, a consultant to the Independent Trustees, with respect to general expected tracking error ranges and various explanations for any tracking error. 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 and 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.
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Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)
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, effort and resources 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 advisory fee and net expense ratio, as compared to information compiled by the Adviser from Lipper Inc. databases on the advisory fees and net expense ratios of comparable exchange-traded funds (“ETFs”), open-end (non-ETF) index funds and open-end (non-ETF) 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 Russell Top 200 Equal Weight Portfolio, PowerShares Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Equal Weight Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Equal Weight Portfolio, PowerShares Russell 2000 Pure Growth Portfolio, PowerShares Russell 2000 Pure Value Portfolio and PowerShares S&P 500® Quality 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; |
● | 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 Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Pure Growth, Portfolio, PowerShares Russell 2000 Pure Value Portfolio and PowerShares S&P 500® Quality Portfolio; and |
● | 0.25% of the Fund’s average daily net assets for each of PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight Portfolio (The net advisory fees, after giving effect to the Expense Caps below, were 0.01%, -0.05% and -0.39% and, respectively, for PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight Portfolio.). |
The Trustees also noted that the Adviser has agreed to waive a portion of its advisory fee and/or pay expenses (an “Expense Cap”) to the extent necessary to prevent the annual operating expenses of each Fund from exceeding the percentage of that Fund’s average daily net assets, at least until August 31, 2017, 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 DWA NASDAQ Momentum 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; |
● | 0.39%, 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 Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Pure Growth Portfolio and PowerShares Russell 2000 Pure Value Portfolio; |
● | 0.29%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for PowerShares S&P 500® Quality Portfolio; |
● | 0.25%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses for PowerShares Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight Portfolio; |
● | 0.60%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for PowerShares DWA Basic Materials Momentum Portfolio, PowerShares DWA Consumer Cyclicals Momentum Portfolio, PowerShares DWA Consumer Staples Momentum Portfolio, PowerShares DWA Energy |
| 66 |
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Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)
Momentum Portfolio, PowerShares DWA Financial Momentum Portfolio, PowerShares DWA Healthcare Momentum Portfolio, PowerShares DWA Industrials Momentum Portfolio, PowerShares DWA Technology Momentum Portfolio and PowerShares DWA Utilities Momentum Portfolio; 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 serve as the investment adviser to any clients, other than other ETFs also overseen by the Trustees, with comparable investment strategies as the Funds, but that the Adviser provides sub-advisory services to clients with comparable investment strategies as certain of the Funds. The Trustees further noted the Adviser’s explanation with respect to the sub-advisory fees it receives for such services in comparison to the advisory fees charged to the Funds. The Trustees noted that the advisory fees for certain Funds were equal to or lower than the median advisory fees of their ETF and open-end index peer funds as illustrated in the table below. The Trustees also noted that the advisory fees for all of the Funds were lower than the median advisory fees of their open-end actively-managed peer funds.
PowerShares Fund | Equal to/Lower than ETF Median | Equal to/Lower than Open-End Index Fund Median* | Equal to/Lower than Open-End Active Fund Median | |||
PowerShares Aerospace & Defense Portfolio | X | |||||
PowerShares Buyback Achievers Portfolio | X | |||||
PowerShares Cleantech Portfolio | X | |||||
PowerShares Dividend Achievers Portfolio | X | X | ||||
PowerShares DWA Basic Materials Momentum Portfolio | X | |||||
PowerShares DWA Consumer Cyclicals Momentum Portfolio | X | |||||
PowerShares DWA Consumer Staples Momentum Portfolio | X | |||||
PowerShares DWA Energy Momentum Portfolio | X | |||||
PowerShares DWA Financial Momentum Portfolio | X | |||||
PowerShares DWA Healthcare Momentum Portfolio | X | |||||
PowerShares DWA Industrials Momentum Portfolio | X | |||||
PowerShares DWA Momentum Portfolio | X | |||||
PowerShares DWA NASDAQ Momentum Portfolio | X | |||||
PowerShares DWA Technology Momentum Portfolio | X | |||||
PowerShares DWA Utilities Momentum Portfolio | X | |||||
PowerShares Dynamic Biotechnology & Genome Portfolio | X | |||||
PowerShares Dynamic Building & Construction Portfolio | X | |||||
PowerShares Dynamic Energy Exploration & Production Portfolio | X | |||||
PowerShares Dynamic Food & Beverage Portfolio | X | |||||
PowerShares Dynamic Large Cap Growth Portfolio | X | |||||
PowerShares Dynamic Large Cap Value Portfolio | X | |||||
PowerShares Dynamic Leisure and Entertainment Portfolio | X | |||||
PowerShares Dynamic Market Portfolio | X | |||||
PowerShares Dynamic Media Portfolio | X | |||||
PowerShares Dynamic Networking Portfolio | X | |||||
PowerShares Dynamic Oil & Gas Services Portfolio | X | |||||
PowerShares Dynamic Pharmaceuticals Portfolio | X | |||||
PowerShares Dynamic Retail Portfolio | X | |||||
PowerShares Dynamic Semiconductors Portfolio | X | |||||
PowerShares Dynamic Software Portfolio | X |
| 67 |
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Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)
PowerShares Fund | Equal to/Lower than ETF Median | Equal to/Lower than Open-End Index Fund Median* | Equal to/Lower than Open-End Active Fund Median | |||
PowerShares Financial Preferred Portfolio | N/A | X | ||||
PowerShares FTSE RAFI US 1000 Portfolio | X | |||||
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio | X | X | ||||
PowerShares Russell Top 200 Equal Weight Portfolio | X | X | ||||
PowerShares Russell Top 200 Pure Growth Portfolio | X | |||||
PowerShares Russell Top 200 Pure Value Portfolio | X | |||||
PowerShares Russell Midcap Equal Weight Portfolio | X | |||||
PowerShares Russell Midcap Pure Growth Portfolio | X | X | X | |||
PowerShares Russell Midcap Pure Value Portfolio | X | X | ||||
PowerShares Russell 2000 Equal Weight Portfolio | X | X | ||||
PowerShares Russell 2000 Pure Growth Portfolio | X | X | ||||
PowerShares Russell 2000 Pure Value Portfolio | X | |||||
PowerShares Global Listed Private Equity Portfolio | N/A | X | ||||
PowerShares Golden Dragon China Portfolio | X | N/A | X | |||
PowerShares High Yield Equity Dividend Achievers Portfolio | X | X | ||||
PowerShares International Dividend Achievers Portfolio | X | X | X | |||
PowerShares S&P 500 Quality Portfolio | X | |||||
PowerShares Water Resources Portfolio | X | |||||
PowerShares WilderHill Clean Energy Portfolio | X | |||||
PowerShares WilderHill Progressive Energy Portfolio | X | |||||
PowerShares Zacks Micro Cap Portfolio | X |
* | The information provided by the Adviser indicated that certain Funds did not have open-end index fund peers. Those Funds have been designated with an “N/A” for not available. |
The Trustees determined that the advisory fees were reasonable, noting the nature of the indexes, the distinguishing factors of the Funds, and the administrative, operational and management oversight costs for the Adviser. The Trustees noted that the net expense ratios for certain Funds were equal to or lower than the median net expense ratios of their ETF and open-end index peer funds as illustrated in the table below. The Trustees also noted that the net expense ratios for all of the Funds were lower than the median net expense ratios of their open-end actively-managed peer funds.
PowerShares Fund | Equal to/Lower than ETF Median | Equal to/Lower than Open-End Index Fund Median | Equal to/Lower than Open-End Active Fund Median | |||
PowerShares Aerospace & Defense Portfolio | X | |||||
PowerShares Buyback Achievers Portfolio | X | |||||
PowerShares Cleantech Portfolio | X | |||||
PowerShares Dividend Achievers Portfolio | X | X | ||||
PowerShares DWA Basic Materials Momentum Portfolio | X | |||||
PowerShares DWA Consumer Cyclicals Momentum Portfolio | X | |||||
PowerShares DWA Consumer Staples Momentum Portfolio | X | |||||
PowerShares DWA Energy Momentum Portfolio | X | |||||
PowerShares DWA Financial Momentum Portfolio | X | |||||
PowerShares DWA Healthcare Momentum Portfolio | X | |||||
PowerShares DWA Industrials Momentum Portfolio | X |
| 68 |
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Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)
PowerShares Fund | Equal to/Lower than ETF Median | Equal to/Lower than Open-End Index Fund Median | Equal to/Lower than Open-End Active Fund Median | |||
PowerShares DWA Momentum Portfolio | X | X | ||||
PowerShares DWA NASDAQ Momentum Portfolio | X | X | ||||
PowerShares DWA Technology Momentum Portfolio | X | |||||
PowerShares DWA Utilities Momentum Portfolio | X | |||||
PowerShares Dynamic Biotechnology & Genome Portfolio | X | |||||
PowerShares Dynamic Building & Construction Portfolio | X | |||||
PowerShares Dynamic Energy Exploration & Production Portfolio | X | |||||
PowerShares Dynamic Food & Beverage Portfolio | X | |||||
PowerShares Dynamic Large Cap Growth Portfolio | X | |||||
PowerShares Dynamic Large Cap Value Portfolio | X | |||||
PowerShares Dynamic Leisure and Entertainment Portfolio | X | |||||
PowerShares Dynamic Market Portfolio | X | |||||
PowerShares Dynamic Media Portfolio | X | |||||
PowerShares Dynamic Networking Portfolio | X | |||||
PowerShares Dynamic Oil & Gas Services Portfolio | X | |||||
PowerShares Dynamic Pharmaceuticals Portfolio | X | |||||
PowerShares Dynamic Retail Portfolio | X | |||||
PowerShares Dynamic Semiconductors Portfolio | X | |||||
PowerShares Dynamic Software Portfolio | X | |||||
PowerShares Financial Preferred Portfolio | N/A | X | ||||
PowerShares FTSE RAFI US 1000 Portfolio | X | X | X | |||
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio | X | X | X | |||
PowerShares Russell Top 200 Equal Weight Portfolio | X | X | ||||
PowerShares Russell Top 200 Pure Growth Portfolio | X | X | ||||
PowerShares Russell Top 200 Pure Value Portfolio | X | |||||
PowerShares Russell Midcap Equal Weight Portfolio | X | X | ||||
PowerShares Russell Midcap Pure Growth Portfolio | X | X | X | |||
PowerShares Russell Midcap Pure Value Portfolio | X | X | ||||
PowerShares Russell 2000 Equal Weight Portfolio | X | X | X | |||
PowerShares Russell 2000 Pure Growth Portfolio | X | X | ||||
PowerShares Russell 2000 Pure Value Portfolio | X | X | ||||
PowerShares Global Listed Private Equity Portfolio | N/A | X | ||||
PowerShares Golden Dragon China Portfolio | X | N/A | X | |||
PowerShares High Yield Equity Dividend Achievers Portfolio | X | X | ||||
PowerShares International Dividend Achievers Portfolio | X | X | X | |||
PowerShares S&P 500 Quality Portfolio | X | X | X | |||
PowerShares Water Resources Portfolio | X | |||||
PowerShares WilderHill Clean Energy Portfolio | X | |||||
PowerShares WilderHill Progressive Energy Portfolio | X | |||||
PowerShares Zacks Micro Cap Portfolio | X |
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.
| 69 |
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Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)
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 overall profitability as well as the estimated profitability to the Adviser from its relationship to each Fund. The Trustees concluded that the overall and estimated profitability to the Adviser 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 Cap agreed to by the Adviser. 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 DWA NASDAQ Momentum 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.
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.
| 70 |
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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 each Fund 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.
Frequency Distribution of Discounts and Premiums
A table showing the number of days the market price of each Fund’s shares was greater than the Fund’s net asset value, and the number of days it was less than the Fund’s net asset value (i.e., premium or discount) for the most recently completed calendar year, and the calendar quarters since that year end (or the life of the Fund, if shorter) may be found at the Fund’s website at www.invescopowershares.com.
©2016 Invesco PowerShares Capital Management LLC | P-PS-AR-2 | |||||
3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | ||||||
invescopowershares.com 800.983.0903 | @PowerShares |
April 30, 2016 |
2016 Annual Report to Shareholders
PWB | PowerShares Dynamic Large Cap Growth Portfolio | |
PWV | PowerShares Dynamic Large Cap Value Portfolio | |
EQWS | PowerShares Russell 2000 Equal Weight Portfolio | |
PXSG | PowerShares Russell 2000 Pure Growth Portfolio | |
PXSV | PowerShares Russell 2000 Pure Value Portfolio | |
EQWM | PowerShares Russell Midcap Equal Weight Portfolio | |
PXMG | PowerShares Russell Midcap Pure Growth Portfolio | |
PXMV | PowerShares Russell Midcap Pure Value Portfolio | |
EQWL | PowerShares Russell Top 200 Equal Weight Portfolio | |
PXLG | PowerShares Russell Top 200 Pure Growth Portfolio | |
PXLV | PowerShares Russell Top 200 Pure Value Portfolio | |
PZI | PowerShares Zacks Micro Cap Portfolio |
The Market Environment | 3 | |||
Manager’s Analysis | 4 | |||
Style Portfolios | ||||
Schedules of Investments | ||||
40 | ||||
41 | ||||
42 | ||||
60 | ||||
64 | ||||
68 | ||||
76 | ||||
78 | ||||
80 | ||||
83 | ||||
84 | ||||
85 | ||||
Statements of Assets and Liabilities | 90 | |||
Statements of Operations | 92 | |||
Statements of Changes in Net Assets | 94 | |||
Financial Highlights | 98 | |||
Notes to Financial Statements | 107 | |||
Report of Independent Registered Public Accounting Firm | 118 | |||
Fees and Expenses | 119 | |||
Tax Information | 121 | |||
Trustees and Officers | 122 | |||
Board Considerations Regarding Continuation of Investment Advisory Agreement | 127 |
| 2 |
|
US Equity
Although the health of individual economic sectors varied dramatically, the US economy overall continued its slow but steady growth during the fiscal year ended April 30, 2016. This modest growth led to recurring debate over whether the US economy could withstand global recessionary forces. Many energy, industrial and materials companies experienced cyclical downturns resembling a mild recession even as many consumer-related companies benefited from continued low interest rates, increased availability of credit and a better employment picture. Another significant downturn in oil prices reduced capital investment but also reduced consumers’ energy and gasoline costs.
In the first half of the reporting period, US equity market performance was greatly affected by expectations of when, and whether, the US Federal Reserve (the “Fed”) might raise interest rates—and the impact the Fed’s action might have. Markets moved lower in the summer of 2015 as a significant downturn in China’s financial markets and weak global economic growth led to increased concern about the sustainability of US economic growth. In the fall, markets rallied and the Fed saw enough economic stabilization to finally raise interest rates.
US stocks began 2016 on a negative note. Together with a sharp decline in oil prices, this suggested a global recession might be imminent and caused investors to become decidedly risk averse; this helped short-term and income-oriented investments, but hurt longer-term and growth-oriented investments. As companies reported earnings and fundamentals that were better than had been feared, stocks rallied sharply in late February and March. Additionally, oil prices strengthened modestly on the back of a weaker US dollar and as Saudi Arabia and Russia considered a freeze on their oil output. Overall, US equity markets were mixed, with the S&P 500 Index, considered representative of the performance of the US stock market, finishing the reporting period modestly higher.
| 3 |
|
PWB | Manager’s Analysis | |
PowerShares Dynamic Large Cap Growth Portfolio (PWB) |
As an index fund, the PowerShares Dynamic Large Cap Growth Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. 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 common stocks of large cap companies that comprise the Index.
NYSE Group, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its guidelines and mandated procedures, the Index Provider selects 50 large cap U.S. growth stocks for inclusion in the Index principally on the basis of their capital appreciation potential. The Index Provider ranks the 2,000 largest U.S. stocks (by market capitalization) traded on the NYSE, NYSE MKT and the NASDAQ for investment potential using a proprietary model. The Index Provider segregates the universe of stocks into three size groups: large cap, mid cap and small cap. The Index Provider considers the 250 largest stocks to be large cap, it considers the next 750 stocks to be mid cap, and it considers the remaining 1,000 stocks to be small cap. The Index Provider divides large cap stocks into growth stocks and value stocks. The Index Provider bases a stock’s characterization as growth or value on a multi-factor methodology. The Index Provider then divides the large cap growth universe into two sub-groups based on market capitalization. The top quintile is one sub-group. The Index Provider includes 15 of the top-ranked relatively larger stocks in this sub-group, and they collectively receive 50% of the weight with each larger stock receiving approximately 3.3%. The bottom four quintiles are another sub-group. The Index Provider includes 35 of the top-ranked relatively smaller stocks in this sub-group, and they collectively receive 50% of the weight, with each smaller stock receiving approximately 1.4%. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned 2.73%. On a net asset value (“NAV”) basis, the Fund returned 2.70%. During the same time period, the Index returned 3.29%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.
During this same time period, the Russell 1000® Growth Index (the “Benchmark Index”) returned 1.07%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 640 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a benchmark similarly composed of large cap growth stocks. The Benchmark Index was
selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the large cap growth market.
The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an index that employs a modified equal weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.
Relative to the Benchmark Index, the Fund was most overweight in the consumer discretionary sector and most underweight in the information technology sector during the fiscal year ended April 30, 2016. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to stock selection within the information technology sector followed by the Fund’s allocation to and stock selection within the consumer discretionary sector.
For the fiscal year ended April 30, 2016, the consumer discretionary sector contributed most significantly to the Fund’s return, followed by the information technology and consumer staples sectors, respectively. The health care sector detracted most significantly from the Fund’s return, followed by the industrials and energy sectors, respectively.
Positions that contributed most significantly to the Fund’s return included Facebook, Inc. Class A, an information technology company (portfolio average weight of 3.51%), and Home Depot, Inc. (The), a consumer discretionary company (portfolio average weight of 3.35%). Positions that detracted most significantly from the Fund’s return included Boeing Co. (The), an industrials company (no longer held at fiscal year-end), and Biogen, Inc., a health care company (no longer held at fiscal year-end).
| 4 |
|
PowerShares Dynamic Large Cap Growth Portfolio (PWB) (continued)
Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Consumer Discretionary | 33.0 | |||
Information Technology | 22.3 | |||
Health Care | 19.0 | |||
Consumer Staples | 17.3 | |||
Financials | 4.3 | |||
Industrials | 2.7 | |||
Telecommunication Services | 1.4 | |||
Money Market Fund Plus Other Assets Less Liabilities | 0.0 | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
Amazon.com, Inc. | 3.8 | |||
Bristol-Myers Squibb Co. | 3.7 | |||
MasterCard, Inc., Class A | 3.6 | |||
Facebook, Inc., Class A | 3.5 | |||
UnitedHealth Group, Inc. | 3.5 | |||
Walt Disney Co. (The) | 3.5 | |||
McDonald’s Corp. | 3.5 | |||
Visa, Inc., Class A | 3.4 | |||
Home Depot, Inc. (The) | 3.4 | |||
CVS Health Corp. | 3.3 | |||
Total | 35.2 |
* | Excluding money market fund holdings. |
| 5 |
|
PowerShares Dynamic Large Cap Growth Portfolio (PWB) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2016
1 Year | 3 Years Average Annualized | 3 Years | 5 Years Average Annualized | 5 Years | 10 Years Average Annualized | 10 Years | Fund Inception† | |||||||||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||||||||||
Dynamic Large Cap Growth IntellidexSM Index | 3.29 | % | 14.43 | % | 49.85 | % | 13.33 | % | 86.94 | % | 7.88 | % | 113.60 | % | 8.06 | % | 137.42 | % | ||||||||||||||||||||
Russell 1000® Growth Index | 1.07 | 12.47 | 42.28 | 11.44 | 71.84 | 8.20 | 119.91 | 8.26 | 142.55 | |||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||
NAV Return | 2.70 | 13.74 | 47.16 | 12.63 | 81.25 | 7.19 | 100.18 | 7.35 | 120.72 | |||||||||||||||||||||||||||||
Market Price Return | 2.73 | 13.75 | 47.18 | 12.62 | 81.19 | 7.19 | 100.24 | 7.33 | 120.21 |
Fund Inception: March 3, 2005
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.58%. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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 and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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.
† | Fund, Index and Benchmark Index returns are based on the inception date of the Fund. |
| 6 |
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PWV | Manager’s Analysis | |
PowerShares Dynamic Large Cap Value Portfolio (PWV) |
As an index fund, the PowerShares Dynamic Large Cap Value Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. 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 common stocks of large cap companies that comprise the Index.
NYSE Group, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its guidelines and mandated procedures, the Index Provider selects 50 large cap U.S. value stocks for inclusion in the Index principally on the basis of their capital appreciation potential. The Index Provider ranks the 2,000 largest U.S. stocks (by market capitalization) traded on the NYSE, NYSE MKT and the NASDAQ for investment potential using a proprietary model. The Index Provider segregates the universe of stocks into three size groups: large cap, mid cap and small cap. The Index Provider considers the 250 largest stocks to be large cap, it considers the next 750 stocks to be mid cap, and it considers the remaining 1,000 stocks to be small cap. The Index Provider divides large cap stocks into growth stocks and value stocks. The Index Provider bases a stock’s characterization as growth or value on a multi-factor methodology. The Index Provider then divides the large cap value universe into two sub-groups based on market capitalization. The top quintile is one sub-group. The Index Provider includes 15 of the top-ranked relatively larger stocks in this sub-group, and they collectively receive 50% of the weight with each larger stock receiving approximately 3.3%. The bottom four quintiles are another sub-group. The Index Provider includes 35 of the top-ranked relatively smaller stocks in this sub-group, and they collectively receive 50% of the weight, with each smaller stock receiving approximately 1.4%. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned (2.18)%. On a net asset value (“NAV”) basis, the Fund returned (2.17)%. During the same time period, the Index returned (1.55)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.
During this same time period, the Russell 1000® Value Index (the “Benchmark Index”) returned (0.40)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 690 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a benchmark similarly composed of large cap value stocks. The Benchmark Index was selected for its recognition in the marketplace, and its performance
comparison is a useful measure for investors as a broad representation of the large cap value market.
The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an index that employs a modified equal weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.
Relative to the Benchmark Index, the Fund was most overweight in the information technology sector and most underweight in the financials sector during the fiscal year ended April 30, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to allocation to the information technology sector.
For the fiscal year ended April 30, 2016, the utilities sector contributed most significantly to the Fund’s return, followed by the telecommunication services sector. The information technology sector detracted most significantly from the Fund’s return, followed by the financials and consumer staples sectors, respectively.
Positions that contributed most significantly to the Fund’s return included AT&T, Inc., a telecommunication services company (portfolio average weight of 3.41%), and Chubb Corporation, a financials company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included Macy’s, Inc., a consumer discretionary company (no longer held at fiscal year-end), and Procter & Gamble Co. (The), a consumer staples company (no longer held at fiscal year-end).
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PowerShares Dynamic Large Cap Value Portfolio (PWV) (continued)
Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Information Technology | 18.0 | |||
Health Care | 16.2 | |||
Financials | 15.5 | |||
Energy | 11.4 | |||
Utilities | 11.4 | |||
Industrials | 7.9 | |||
Telecommunication Services | 6.4 | |||
Consumer Discretionary | 5.7 | |||
Consumer Staples | 4.7 | |||
Materials | 2.8 | |||
Other Assets Less Liabilities | (0.0) |
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
Chevron Corp. | 3.8 | |||
International Business Machines Corp. | 3.5 | |||
JPMorgan Chase & Co. | 3.4 | |||
Merck & Co., Inc. | 3.4 | |||
Pfizer, Inc. | 3.4 | |||
Exxon Mobil Corp. | 3.4 | |||
Oracle Corp. | 3.4 | |||
Johnson & Johnson | 3.3 | |||
AT&T, Inc. | 3.3 | |||
Cisco Systems, Inc. | 3.3 | |||
Total | 34.2 |
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PowerShares Dynamic Large Cap Value Portfolio (PWV) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2016
1 Year | 3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years Cumulative | 10 Years Average Annualized | 10 Years | Fund Inception† | |||||||||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||||||||||
Dynamic Large Cap Value IntellidexSM Index | (1.55 | )% | 8.92 | % | 29.23 | % | 11.22 | % | 70.22 | % | 8.66 | % | 129.53 | % | 9.41 | % | 172.90 | % | ||||||||||||||||||||
Russell 1000® Value Index | (0.40 | ) | 9.59 | 31.62 | 10.13 | 61.97 | 5.67 | 73.63 | 6.30 | 97.81 | ||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||
NAV Return | (2.17 | ) | 8.26 | 26.88 | 10.52 | 64.89 | 7.94 | 114.78 | 8.68 | 153.24 | ||||||||||||||||||||||||||||
Market Price Return | (2.18 | ) | 8.23 | 26.78 | 10.50 | 64.76 | 7.94 | 114.70 | 8.67 | 152.81 |
Fund Inception: March 3, 2005
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.57%. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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 and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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.
† | Fund, Index and Benchmark Index returns are based on the inception date of the Fund. |
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EQWS | Manager’s Analysis | |
PowerShares Russell 2000 Equal Weight Portfolio (EQWS) |
Effective after the close of markets on May 22, 2015, the Fund’s name changed from PowerShares Fundamental Pure Small Core Portfolio to PowerShares Russell 2000 Equal Weight Portfolio and the underlying index changed from RAFI® Fundamental Small Core Index (the “Previous Index”) to Russell 2000® Equal Weight Index (the “Index”). At that time the Fund also changed its ticker symbol from PXSC to EQWS and changed its investment objective and investment policies.
As an index fund, the PowerShares Russell 2000 Equal Weight Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Index and, through May 22, 2015, of the Previous Index. The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index and, through May 22, 2015, comprised the Previous Index.
The Index is designed to provide equal-weighted exposure to approximately 2,000 mid and small cap securities in the larger U.S. equity market. The Index generally is composed of all of the securities included in the Russell 2000® Index, which is composed of the smallest 2,000 securities of the Russell 3000® Index, an index designed to measure the performance of the largest 3,000 companies representing 95% of the U.S. equity market. Each quarter, Frank Russell Company (the “Index Provider”) groups each component security in the Russell 2000® Index based on the Russell Global Sectors (“RGS”) classification system. The RGS system is composed of nine economic sectors: consumer discretionary, consumer staples, energy, financial services, health care, materials & processing, producer durables, technology and utilities. Once the component securities are grouped, the Index Provider allocates an equal weight to each sector and then assigns an equal weight to each constituent security within each sector. The Index Provider then screens each security for liquidity and capacity measures; a potential constituent will be included in the Index only if it is considered sufficiently liquid and has a sufficient number of outstanding shares readily available in the market. Unlike the Russell 2000® Index, which employs a market cap-weighted methodology, the Index’s equal weighting methodology provides equal exposure to the smallest components and underweighted sectors of the Russell 2000® Index. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned (7.97)%. On a net asset value (“NAV”) basis, the Fund returned (8.00)%. During the same time period, the Blended-Russell 2000® Equal Weight Index (a composite of the returns of the Previous Index through May 22, 2015, and of the Index for the remainder of the fiscal year, referred to herein as the “Blended-Index”) returned (7.78)%. During the fiscal year, the Fund fully replicated the components of the Blended-Index; therefore, the Fund’s performance, on a NAV basis, differed from
the return of the Blended-Index primarily due to fees and operating expenses that the Fund incurred during the period.
During this same time period, the Russell 2000® Index (the “Benchmark Index”) returned (5.94)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 1,950 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a similar broad-based small cap benchmark. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the U.S. small cap equity market.
The performance of the Fund differed from the Benchmark Index primarily because the Fund tracks an index that employs a fundamental weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.
Relative to the Benchmark Index, the Fund was most overweight in the consumer staples sector and most underweight in the financials sector during the fiscal year ended April 30, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s overweight position in the energy sector.
For the fiscal year ended April 30, 2016, the utilities sector contributed most significantly to the Fund’s return, followed by the consumer staples and telecommunication services sectors, respectively. The energy sector detracted most significantly from the Fund’s return, followed by the health care and industrials sectors, respectively.
Positions that contributed most significantly to the Fund’s return included National Beverage Corp., a consumer staples company (portfolio average weight of 0.25%), and Coeur Mining, Inc., a materials company (portfolio average weight of 0.10%). Positions that detracted most significantly from the Fund’s return included Ultra Petroleum Corp., an energy company (no longer held at fiscal year-end), and Peabody Energy Corporation, an energy company (no longer held at fiscal year-end).
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PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)
Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Industrials | 13.5 | |||
Information Technology | 13.1 | |||
Health Care | 12.0 | |||
Energy | 11.6 | |||
Consumer Discretionary | 10.8 | |||
Financials | 10.7 | |||
Consumer Staples | 10.3 | |||
Materials | 7.9 | |||
Utilities | 6.2 | |||
Telecommunication Services | 3.9 | |||
Money Market Fund Plus Other Assets Less Liabilities | 0.0 | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
Sanchez Energy Corp. | 0.3 | |||
B&G Foods, Inc. | 0.3 | |||
Fairmount Santrol Holdings, Inc. | 0.3 | |||
Helix Energy Solutions Group, Inc. | 0.3 | |||
Natural Health Trends Corp. | 0.3 | |||
EXCO Resources, Inc. | 0.3 | |||
Diplomat Pharmacy, Inc. | 0.3 | |||
Pioneer Energy Services Corp. | 0.3 | |||
MGP Ingredients, Inc. | 0.2 | |||
Parker Drilling Co. | 0.2 | |||
Total | 2.8 |
* | Excluding money market fund holdings. |
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PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)
Growth of a $10,000 Investment Since Inception†
Fund Performance History as of April 30, 2016
1 Year | 3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years Cumulative | Fund Inception† | |||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||
Blended-Russell 2000® Equal Weight Index†† | (7.78 | )% | 7.19 | % | 23.16 | % | 6.97 | % | 40.03 | % | 4.44 | % | 50.53 | % | ||||||||||||||||
Russell 2000® Equal Weight Index | (9.04 | ) | 5.69 | 18.07 | 5.19 | 28.77 | N/A | N/A | ||||||||||||||||||||||
Russell 2000® Index | (5.94 | ) | 7.53 | 24.33 | 6.98 | 40.11 | 5.45 | 64.79 | ||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||
NAV Return | (8.00 | ) | 6.79 | 21.78 | 6.54 | 37.28 | 3.78 | 41.85 | ||||||||||||||||||||||
Market Price Return | (7.97 | ) | 6.86 | 22.04 | 6.55 | 37.31 | 3.79 | 41.94 |
Fund Inception: December 1, 2006
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.92%, including acquired fund fees and expenses of 0.02% and the net annual operating expense ratio was indicated as 0.27%. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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.
Blended-Index, Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index, Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index, Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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.
† | Fund, Blended-Index, Index and Benchmark Index returns are based on the inception date of the Fund. |
†† | The Blended-Russell 2000® Equal Weight Index is comprised of the performance of the Dynamic Small Cap IntellidexSM Index, the Fund’s underlying index from Fund inception through the conversion date, June 16, 2011, followed by the performance of the Previous Index for the period June 16, 2011 through May 22, 2015, followed by the performance of the Index for the period May 22, 2015 through April 30, 2016. |
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PXSG | Manager’s Analysis | |
PowerShares Russell 2000 Pure Growth Portfolio (PXSG) |
Effective after the close of markets on May 22, 2015, the Fund’s name changed from PowerShares Fundamental Pure Small Growth Portfolio to PowerShares Russell 2000 Pure Growth Portfolio and the underlying index changed from RAFI® Fundamental Small Growth Index (the “Previous Index”) to Russell 2000® Pure Growth Index (the “Index”). At that time the Fund also changed its investment objective and investment policies.
As an index fund, the PowerShares Russell 2000 Pure Growth Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Index and, through May 22, 2015, of the Previous Index. The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index and, through May 22, 2015, comprised the Previous Index.
The Index is composed of securities selected from the Russell 2000® Index, which is composed of the smallest 2,000 securities of the Russell 3000® Index, an index designed to measure the performance of the largest 3,000 companies representing 95% of the U.S. equity market. Frank Russell Company (the “Index Provider”) first identifies securities in the Russell 2000® Index with higher price-to-book ratios and higher forecasting growth values. The Index’s constituent securities are then assigned a Composite Value Score (“CVS”), which is calculated based on three characteristics (book to price (a value characteristic), sales per share growth (a growth characteristic) and medium-term growth forecast (a growth characteristic)) to identify whether they are growth or value securities. In general, stocks with lower CVS scores are considered growth stocks. The Index then weights securities in proportion to their CVS score, giving greatest weight to the securities demonstrating the most growth characteristics. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned (7.31)%. On a net asset value (“NAV”) basis, the Fund returned (7.47)%. During the same time period, the Blended-Russell 2000 Pure Growth Index (a composite of the returns of the Previous Index through May 22, 2015, and of the Index for the remainder of the fiscal year, referred to herein as the “Blended-Index”) returned (7.24)%. During the fiscal year, the Fund fully replicated the components of the Blended-Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Blended-Index primarily due to fees and operating expenses that the Fund incurred during the period.
During this same time period, the Russell 2000® Growth Index (the “Benchmark Index”) returned (8.27)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 1,180 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the
Fund compare to the performance of a similar small cap growth benchmark. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the U.S. small cap growth market.
The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an index that employs a fundamental weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.
Relative to the Benchmark Index, the Fund was most overweight in the information technology sector and most underweight in the consumer discretionary sector during the fiscal year ended April 30, 2016. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to these sector allocations.
For the fiscal year ended April 30, 2016, the telecommunication services sector contributed most significantly to the Fund’s return, followed by the financials sector. The health care sector detracted most significantly from the Fund’s return, followed by the consumer discretionary and energy sectors, respectively.
Positions that contributed most significantly to the Fund’s return included Hawaiian Holdings, Inc., an industrials company (portfolio average weight of 0.90%), and MaxLinear, Inc., Class A, an information technology company (portfolio average weight of 1.08%). Positions that detracted most significantly from the Fund’s return included Lannett Co., Inc., a health care company (portfolio average weight of 0.52%), and WisdomTree Investments, Inc., a financials company (portfolio average weight of 0.78%).
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PowerShares Russell 2000 Pure Growth Portfolio (PXSG) (continued)
Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Information Technology | 31.3 | |||
Health Care | 27.4 | |||
Industrials | 14.2 | |||
Consumer Discretionary | 13.2 | |||
Financials | 5.9 | |||
Consumer Staples | 3.3 | |||
Materials | 3.0 | |||
Telecommunication Services | 1.3 | |||
Energy | 0.4 | |||
Money Market Funds Plus Other Assets Less Liabilities | 0.0 | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
ABIOMED, Inc. | 1.5 | |||
MaxLinear, Inc., Class A | 1.4 | |||
Hawaiian Holdings, Inc. | 1.4 | |||
NeoGenomics, Inc. | 1.3 | |||
CoreSite Realty Corp. REIT | 1.1 | |||
Zeltiq Aesthetics, Inc. | 1.1 | |||
Clearfield, Inc. | 1.1 | |||
Healthcare Services Group, Inc. | 1.1 | |||
WebMD Health Corp. | 1.0 | |||
Dycom Industries, Inc. | 1.0 | |||
Total | 12.0 |
* | Excluding money market fund holdings. |
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PowerShares Russell 2000 Pure Growth Portfolio (PXSG) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2016
1 Year | 3 Years Average | 3 Years Cumulative | 5 Years Average | 5 Years Cumulative | 10 Years Average | 10 Years Cumulative | Fund Inception†† | |||||||||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||||||||||
Blended-Russell 2000® Pure Growth Index† | (7.24 | )% | 6.88 | % | 22.09 | % | 5.20 | % | 28.83 | % | 3.33 | % | 38.76 | % | 4.92 | % | 70.88 | % | ||||||||||||||||||||
Russell 2000® Pure Growth Index | (7.26 | ) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||
Russell 2000® Growth Index | (8.27 | ) | 8.50 | 27.74 | 7.15 | 41.23 | 6.14 | 81.44 | 7.40 | 121.84 | ||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||
NAV Return | (7.47 | ) | 6.56 | 21.00 | 4.81 | 26.48 | 2.74 | 30.99 | 4.33 | 60.47 | ||||||||||||||||||||||||||||
Market Price Return | (7.31 | ) | 6.64 | 21.28 | 4.82 | 26.51 | 2.74 | 31.09 | 4.32 | 60.36 |
Fund Inception: March 3, 2005
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.67%, including acquired fund fees and expenses of 0.02% and the net annual operating expense ratio was indicated as 0.41%. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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.
Blended-Index, Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index, Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index, Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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 Blended-Russell 2000® Pure Growth Index is comprised of the performance of the Dynamic Small Cap Growth IntellidexSM Index, the Fund’s underlying index from Fund inception through the conversion date, June 16, 2011, followed by the performance of the Previous Index for the period June 16, 2011 through May 22, 2015, followed by the performance of the Index for the period May 22, 2015 through April 30, 2016. |
†† | Fund, Blended-Index, Index and Benchmark Index returns are based on the inception date of the Fund. |
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PXSV | Manager’s Analysis | |
PowerShares Russell 2000 Pure Value Portfolio (PXSV) |
Effective after the close of markets on May 22, 2015, the Fund’s name changed from PowerShares Fundamental Pure Small Value Portfolio to PowerShares Russell 2000 Pure Value Portfolio and the underlying index changed from RAFI® Fundamental Small Value Index (the “Previous Index”) to Russell 2000® Pure Value Index (the “Index”). At that time the Fund also changed its investment objective and investment policies.
As an index fund, the PowerShares Russell 2000 Pure Value Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Index and, through May 22, 2015, of the Previous Index. The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index and, through May 22, 2015, comprised the Previous Index.
The Index is composed of securities selected from the Russell 2000® Index, which is composed of the smallest 2,000 securities of the Russell 3000® Index, an index designed to measure the performance of the largest 3,000 companies representing 95% of the U.S. equity market. Frank Russell Company (the “Index Provider”) first identifies securities in the Russell 2000® Index with lower price-to-book ratios and lower forecasting growth values The Index’s constituent securities are then assigned a Composite Value Score (“CVS”), which is calculated based on three characteristics (book to price (a value characteristic), sales per share growth (a growth characteristic) and medium-term growth forecast (a growth characteristic)) to identify whether they are growth or value securities. In general, stocks with higher CVS scores are considered value stocks. The Index then weights securities in proportion to their CVS score, giving greatest weight to the securities demonstrating the most value characteristics. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned (4.90)%. On a net asset value (“NAV”) basis, the Fund returned (4.93)%. During the same time period, the Blended-Russell 2000 Pure Value Index (a composite of the returns of the Previous Index through May 22, 2015, and of the Index for the remainder of the fiscal year, referred to herein as the “Blended-Index”) returned (4.75)%. During the fiscal year, the Fund fully replicated the components of the Blended-Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Blended-Index primarily due to fees and operating expenses that the Fund incurred during the period, partially offset by revenue generated through the Fund’s securities lending program.
During this same time period, the Russell 2000® Value Index (the “Benchmark Index”) returned (3.71)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 1,320 securities. The
Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a similar small cap value benchmark. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the U.S. small cap value market.
The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an index that employs a fundamental weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.
Relative to the Benchmark Index, the Fund was most overweight in the financials sector and most underweight in the industrials sector during the fiscal year ended April 30, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s overweight position in the energy sector.
For the fiscal year ended April 30, 2016, the financials sector contributed most significantly to the Fund’s return, followed by the utilities and information technology sectors, respectively. The energy sector detracted most significantly from the Fund’s return, followed by the consumer discretionary and industrials sectors, respectively.
Positions that contributed most significantly to the Fund’s return included Amedisys, Inc., a health care company (no longer held at fiscal year-end), and Oclaro, Inc., an information technology company (portfolio average weight of 0.34%). Positions that detracted most significantly from the Fund’s return included Republic Airways Holdings, Inc., an industrials company (no longer held at fiscal year-end), and Halcon Resources Corp., an energy company (portfolio average weight of 0.39%).
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PowerShares Russell 2000 Pure Value Portfolio (PXSV) (continued)
Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Financials | 56.6 | |||
Energy | 10.2 | |||
Utilities | 9.7 | |||
Information Technology | 7.5 | |||
Industrials | 7.1 | |||
Consumer Discretionary | 5.2 | |||
Telecommunication Services | 2.0 | |||
Health Care | 1.2 | |||
Consumer Staples | 0.3 | |||
Materials | 0.1 | |||
Money Market Funds Plus Other Assets Less Liabilities | 0.1 | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
Callon Petroleum Co. | 1.2 | |||
Gramercy Property Trust REIT | 1.1 | |||
Portland General Electric Co. | 1.0 | |||
ACCO Brands Corp. | 1.0 | |||
ONE Gas, Inc. | 0.9 | |||
Cash America International, Inc. | 0.9 | |||
Avista Corp. | 0.9 | |||
Flagstar Bancorp, Inc. | 0.8 | |||
Checkpoint Systems, Inc. | 0.8 | |||
Black Hills Corp. | 0.8 | |||
Total | 9.4 |
* | Excluding money market fund holdings. |
| 17 |
|
PowerShares Russell 2000 Pure Value Portfolio (PXSV) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2016
1 Year | 3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years Cumulative | 10 Years Average Annualized | 10 Years Cumulative | Fund Inception†† | |||||||||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||||||||||
Blended-Russell 2000® Pure Value Index† | (4.75 | )% | 8.87 | % | 29.05 | % | 9.09 | % | 54.49 | % | 5.62 | % | 72.77 | % | 6.33 | % | 98.29 | % | ||||||||||||||||||||
Russell 2000® Pure Value Index | (6.19 | ) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||
Russell 2000® Value Index | (3.71 | ) | 6.50 | 20.81 | 6.77 | 38.74 | 4.61 | 56.98 | 5.87 | 88.98 | ||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||
NAV Return | (4.93 | ) | 8.62 | 28.17 | 8.79 | 52.36 | 5.07 | 63.93 | 5.74 | 86.43 | ||||||||||||||||||||||||||||
Market Price Return | (4.90 | ) | 8.68 | 28.36 | 8.78 | 52.33 | 5.08 | 64.11 | 5.73 | 86.29 |
Fund Inception: March 3, 2005
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.51% and the net annual operating expense ratio was indicated as 0.39%. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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.
Blended-Index, Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index, Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index, Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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 Blended-Russell 2000® Pure Value Index is comprised of the performance of the Dynamic Small Cap Value IntellidexSM Index, the Fund’s underlying index from Fund inception through the conversion date, June 16, 2011, followed by the performance of the Previous Index for the period June 16, 2011 through May 22, 2015, followed by the performance of the Index for the period May 22, 2015 through April 30, 2016. |
†† | Fund, Blended-Index, Index and Benchmark Index returns are based on the inception date of the Fund. |
| 18 |
|
EQWM | Manager’s Analysis | |
PowerShares Russell Midcap Equal Weight Portfolio (EQWM) |
Effective after the close of markets on May 22, 2015, the Fund’s name changed from PowerShares Fundamental Pure Mid Core Portfolio to PowerShares Russell Midcap Equal Weight Portfolio and the underlying index changed from RAFI® Fundamental Mid Core Index (the “Previous Index”) to Russell Midcap® Equal Weight Index (the “Index”). At that time the Fund also changed its ticker symbol from PXMC to EQWM and changed its investment objective and investment policies.
As an index fund, the PowerShares Russell Midcap Equal Weight Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Index and, through May 22, 2015, of the Previous Index. The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index and, through May 22, 2015, comprised the Previous Index.
The Index is designed to provide equal-weighted exposure to approximately 800 securities of medium sized companies in the larger U.S. equity market. The Index generally is composed of all of the securities included in the Russell Midcap® Index, which is composed of the smallest 800 securities of the Russell 1000® Index, an index designed to measure the performance of the largest 1,000 companies in the U.S. equity market. Each quarter, Frank Russell Company (the “Index Provider”) groups each component security in the Russell Midcap® Index based on the Russell Global Sectors (“RGS”) classification system. The RGS system is composed of nine economic sectors: consumer discretionary, consumer staples, energy, financial services, health care, materials & processing, producer durables, technology and utilities. Once the component securities are grouped, the Index Provider allocates an equal weight to each sector and then assigns an equal weight to each constituent security within each sector. The Index Provider then screens each security for liquidity and capacity measures; a potential constituent will be included in the Index only if it is considered sufficiently liquid and has a sufficient number of outstanding shares readily available in the market. Unlike the Russell Midcap® Index, which employs a market cap-weighted methodology, the Index’s equal weighting methodology provides equal exposure to the smallest components and underweighted sectors of the Russell Midcap® Index. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned (2.14)%. On a net asset value (“NAV”) basis, the Fund returned (2.02)%. During the same time period, the Blended-Russell Midcap® Equal Weight Index (a composite of the returns of the Previous Index through May 22, 2015, and of the Index for the remainder of the fiscal year, referred to herein as the “Blended-Index”) returned (1.83)%. During the fiscal year, the Fund fully replicated the components of the Blended-Index; therefore, the Fund’s performance, on a NAV basis, differed from
the return of the Blended-Index primarily due to fees and operating expenses that the Fund incurred during the period.
During this same time period, the Russell Midcap® Index (the “Benchmark Index”) returned (2.14)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 820 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a similar broad-based mid cap benchmark. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the U.S. mid cap equity market.
The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an index that employs a fundamental weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.
Relative to the Benchmark Index, the Fund was most overweight in the consumer staples sector and most underweight in the financials sector during the fiscal year ended April 30, 2016, which contributed to the Fund’s outperformance.
For the fiscal year ended April 30, 2016, the utilities sector contributed most significantly to the Fund’s return, followed by the consumer staples and materials sectors, respectively. The energy sector detracted most significantly from the Fund’s return, followed by the health care and information technology sectors, respectively.
Positions that contributed most significantly to the Fund’s return included Tyson Foods, Inc. Class A, a consumer staples company (portfolio average weight of 0.32%), and Hormel Foods Corp., a consumer staples company (portfolio average weight of 0.35%). Positions that detracted most significantly from the Fund’s return included SunEdison, Inc., a semiconductors & semiconductor equipment company (no longer held at fiscal year-end), and GNC Holdings, Inc. Class A, a consumer discretionary company (portfolio average weight of 0.29%).
| 19 |
|
PowerShares Russell Midcap Equal Weight Portfolio (EQWM) (continued)
Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Industrials | 12.6 | |||
Information Technology | 12.5 | |||
Energy | 11.8 | |||
Health Care | 11.8 | |||
Consumer Staples | 10.8 | |||
Financials | 10.0 | |||
Consumer Discretionary | 10.0 | |||
Utilities | 9.3 | |||
Materials | 9.3 | |||
Telecommunication Services | 1.9 | |||
Money Market Funds Plus Other Assets Less Liabilities | 0.0 | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
Bunge Ltd. | 0.4 | |||
Pilgrim’s Pride Corp. | 0.4 | |||
Energizer Holdings, Inc. | 0.4 | |||
Ingredion, Inc. | 0.3 | |||
Monster Beverage Corp. | 0.3 | |||
Nu Skin Enterprises, Inc., Class A | 0.3 | |||
Spectrum Brands Holdings, Inc. | 0.3 | |||
Mead Johnson Nutrition Co. | 0.3 | |||
Coca-Cola Enterprises, Inc. | 0.3 | |||
Hain Celestial Group, Inc. (The) | 0.3 | |||
Total | 3.3 |
* | Excluding money market fund holdings. |
| 20 |
|
PowerShares Russell Midcap Equal Weight Portfolio (EQWM) (continued)
Growth of a $10,000 Investment Since Inception†
Fund Performance History as of April 30, 2016
3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years Cumulative | Fund Inception† | ||||||||||||||||||||||||||
Index | 1 Year | Average Annualized | Cumulative | |||||||||||||||||||||||||||
Blended-Russell Midcap® Equal Weight Index†† | (1.83 | )% | 10.40 | % | 34.55 | % | 9.34 | % | 56.28 | % | 6.36 | % | 78.70 | % | ||||||||||||||||
Russell Midcap® Equal Weight Index | (2.10 | ) | 10.19 | 33.79 | 9.71 | 58.94 | N/A | N/A | ||||||||||||||||||||||
Russell Midcap® Index | (2.14 | ) | 10.37 | 34.44 | 9.88 | 60.21 | 7.29 | 93.95 | ||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||
NAV Return | (2.02 | ) | 10.04 | 33.23 | 8.92 | 53.33 | 5.80 | 70.03 | ||||||||||||||||||||||
Market Price Return | (2.14 | ) | 10.02 | 33.19 | 8.90 | 53.17 | 5.80 | 69.92 |
Fund Inception: December 1, 2006
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.58% and the net annual operating expense ratio was indicated as 0.25%. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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.
Blended-Index, Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index, Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index, Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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.
† | Fund, Blended-Index, Index and Benchmark Index returns are based on the inception date of the Fund. |
†† | The Blended-Russell Midcap® Equal Weight Index is comprised of the performance of the Dynamic Mid Cap IntellidexSM Index, the Fund’s underlying index from Fund inception through the conversion date, June 16, 2011, followed by the performance of the Previous Index for the period June 16, 2011 through May 22, 2015, followed by the performance of the Index for the period May 22, 2015 through April 30, 2016. |
| 21 |
|
PXMG | Manager’s Analysis | |
PowerShares Russell Midcap Pure Growth Portfolio (PXMG) |
Effective after the close of markets on May 22, 2015, the Fund’s name changed from PowerShares Fundamental Pure Mid Growth Portfolio to PowerShares Russell Midcap Pure Growth Portfolio and the underlying index changed from RAFI® Fundamental Mid Growth Index (the “Previous Index”) to Russell Midcap® Pure Growth Index (the “Index”). At that time the Fund also changed its investment objective and investment policies.
As an index fund, the PowerShares Russell Midcap Pure Growth Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Index and, through May 22, 2015, of the Previous Index. The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index and, through May 22, 2015, comprised the Previous Index.
The Index is composed of securities selected from the Russell Midcap® Index, which is composed of the smallest 800 securities of the Russell 1000® Index, an index designed to measure the performance of the largest 1,000 companies in the U.S. equity market. Frank Russell Company (the “Index Provider”) first identifies securities in the Russell Midcap® Index with higher price-to-book ratios and higher forecasting growth values. The Index’s constituent securities are then assigned a Composite Value Score (“CVS”), which is calculated based on three characteristics (book to price (a value characteristic), sales per share growth (a growth characteristic) and medium-term growth forecast (a growth characteristic)) to identify whether they are growth or value securities. In general, stocks with lower CVS scores are considered growth stocks. The Index then weights securities in proportion to their CVS score, giving greatest weight to the securities demonstrating the most growth characteristics. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned (8.40)%. On a net asset value (“NAV”) basis, the Fund returned (8.34)%. During the same time period, the Blended-Russell Midcap® Pure Growth Index (a composite of the returns of the Previous Index through May 22, 2015, and of the Index for the remainder of the fiscal year, referred to herein as the “Blended-Index”) returned (8.04)%. During the fiscal year, the Fund fully replicated the components of the Blended-Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Blended-Index primarily due to fees and operating expenses that the Fund incurred during the period.
During this same time period, the Russell Midcap® Growth Index (the “Benchmark Index”) returned (4.13)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 498 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the
Fund compare to the performance of a similar mid cap growth benchmark. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the U.S. mid cap growth equity market.
The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an index that employs a fundamental weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.
Relative to the Benchmark Index, the Fund was most overweight in the information technology sector and most underweight in the consumer staples sector during the fiscal year ended April 30, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s overweight position in the health care sector.
For the fiscal year ended April 30, 2016, the materials sector contributed most significantly to the Fund’s return, followed by the consumer staples and telecommunication services sectors, respectively. The health care sector detracted most significantly from the Fund’s return, followed by the information technology and energy sectors, respectively.
Positions that contributed most significantly to the Fund’s return included Edwards Lifesciences Corp., a health care company (portfolio average weight of 1.3%), and Ulta Salon, Cosmetics & Fragrance, Inc., a consumer discretionary company (portfolio average weight of 1.91%). Positions that detracted most significantly from the Fund’s return included Akorn, Inc., a health care company (portfolio average weight of 1.07%), and Tenet Healthcare Corp., a health care company (portfolio average weight of 0.93%).
| 22 |
|
PowerShares Russell Midcap Pure Growth Portfolio (PXMG) (continued)
Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Information Technology | 30.0 | |||
Consumer Discretionary | 26.2 | |||
Health Care | 18.5 | |||
Industrials | 12.7 | |||
Financials | 6.4 | |||
Materials | 3.1 | |||
Consumer Staples | 2.5 | |||
Energy | 0.7 | |||
Money Market Funds Plus Other Assets Less Liabilities | (0.1) | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
Ulta Salon, Cosmetics & Fragrance, Inc. | 2.4 | |||
Ultimate Software Group, Inc. (The) | 2.2 | |||
Six Flags Entertainment Corp. | 2.2 | |||
Edwards Lifesciences Corp. | 2.1 | |||
Global Payments, Inc. | 2.1 | |||
Equinix, Inc. REIT | 1.8 | |||
FleetCor Technologies, Inc. | 1.8 | |||
Tempur Sealy International, Inc. | 1.7 | |||
O’Reilly Automotive, Inc. | 1.7 | |||
NetSuite, Inc. | 1.7 | |||
Total | 19.7 |
* | Excluding money market fund holdings. |
| 23 |
|
PowerShares Russell Midcap Pure Growth Portfolio (PXMG) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2016
1 Year | 3 Years Average | 3 Years Cumulative | 5 Years Average | 5 Years Cumulative | 10 Years Average | 10 Years Cumulative | Fund Inception†† | |||||||||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||||||||||
Blended-Russell Midcap® Pure Growth Index† | (8.04 | )% | 5.35 | % | 16.92 | % | 5.26 | % | 29.25 | % | 5.65 | % | 73.29 | % | 7.28 | % | 119.12 | % | ||||||||||||||||||||
Russell Midcap® Pure Growth Index | (8.10 | ) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||
Russell Midcap® Growth Index | (4.13 | ) | 10.43 | 34.67 | 9.20 | 55.30 | 7.38 | 103.84 | 8.41 | 146.22 | ||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||
NAV Return | (8.34 | ) | 4.95 | 15.60 | 4.84 | 26.65 | 5.08 | 64.20 | 6.67 | 105.57 | ||||||||||||||||||||||||||||
Market Price Return | (8.40 | ) | 4.96 | 15.62 | 4.82 | 26.56 | 5.08 | 64.10 | 6.65 | 105.16 |
Fund Inception: March 3, 2005
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.42% and the net annual operating expense ratio was indicated as 0.39%. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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.
Blended-Index, Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index, Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index, Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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 Blended-Russell Midcap® Pure Growth Index is comprised of the performance of the Dynamic Mid Cap Growth IntellidexSM Index, the Fund’s underlying index from Fund inception through the conversion date, June 16, 2011, followed by the performance of the Previous Index for the period June 16, 2011 through May 22, 2015, followed by the performance of the Index for the period May 22, 2015 through April 30, 2016. |
†† | Fund, Blended-Index, Index and Benchmark Index returns are based on the inception date of the Fund. |
| 24 |
|
PXMV | Manager’s Analysis | |
PowerShares Russell Midcap Pure Value Portfolio (PXMV) |
Effective after the close of markets on May 22, 2015, the Fund’s name changed from PowerShares Fundamental Pure Mid Value Portfolio to PowerShares Russell Midcap Pure Value Portfolio and the underlying index changed from RAFI® Fundamental Mid Value Index (the “Previous Index”) to Russell Midcap® Pure Value Index (the “Index”). At that time the Fund also changed its investment objective and investment policies.
As an index fund, the PowerShares Russell Midcap Pure Value Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Index and, through May 22, 2015, of the Previous Index. The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index and, through May 22, 2015, comprised the Previous Index.
The Index is composed of securities selected from the Russell Midcap® Index, which is composed of the smallest 800 securities of the Russell 1000® Index, an index designed to measure the performance of the largest 1,000 companies in the U.S. equity market. Frank Russell Company (the “Index Provider”) first identifies securities in the Russell Midcap® Index with lower price-to-book ratios and higher forecasting growth values. The Index’s constituent securities are then assigned a Composite Value Score (“CVS”), which is calculated based on three characteristics (book to price (a value characteristic), sales per share growth (a growth characteristic) and medium-term growth forecast (a growth characteristic)) to identify whether they are growth or value securities. In general, stocks with higher CVS scores are considered value stocks. The Index then weights securities in proportion to their CVS score, giving greatest weight to the securities demonstrating the most value characteristics. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned 1.39%. On a net asset value (“NAV”) basis, the Fund returned 1.35%. During the same time period, the Blended-Russell Midcap® Pure Value Index (a composite of the returns of the Previous Index through May 22, 2015, and of the Index for the remainder of the fiscal year, referred to herein as the “Blended-Index”) returned 1.70%. During the fiscal year, the Fund fully replicated the components of the Blended-Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Blended-Index primarily due to fees and operating expenses that the Fund incurred during the period.
During this same time period, the Russell Midcap® Value Index (the “Benchmark Index”) returned (0.18)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 560 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the
Fund compare to the performance of a similar mid cap value benchmark. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the U.S. mid cap value market.
The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an index that employs a fundamental weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.
Relative to the Benchmark Index, the Fund was most overweight in the utilities sector and most underweight in the health care sector during the fiscal year ended April 30, 2016, which contributed to the Fund’s outperformance.
For the fiscal year ended April 30, 2016, the utilities sector contributed most significantly to the Fund’s return, followed by the financials and materials sectors, respectively. The energy sector detracted most significantly from the Fund’s return, followed by the consumer discretionary and telecommunication services sectors, respectively.
Positions that contributed most significantly to the Fund’s return included StanCorp Financial Group, Inc., a financials company (no longer held at fiscal year-end), and TECO Energy, Inc., a utilities company (portfolio average weight of 1.08%). Positions that detracted most significantly from the Fund’s return included Golar LNG Ltd., an energy company (portfolio average weight of 0.59%), and Marathon Oil Corp., an energy company (portfolio average weight of 0.68%).
| 25 |
|
PowerShares Russell Midcap Pure Value Portfolio (PXMV) (continued)
Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Financials | 41.2 | |||
Utilities | 23.8 | |||
Energy | 10.6 | |||
Industrials | 6.5 | |||
Materials | 5.5 | |||
Information Technology | 4.9 | |||
Telecommunication Services | 2.9 | |||
Consumer Discretionary | 2.5 | |||
Consumer Staples | 1.3 | |||
Health Care | 0.8 | |||
Money Market Funds Plus Other Assets Less Liabilities | (0.0) | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
M&T Bank Corp. | 1.8 | |||
Orbital ATK, Inc. | 1.7 | |||
White Mountains Insurance Group Ltd. | 1.6 | |||
First Solar, Inc. | 1.5 | |||
SCANA Corp. | 1.5 | |||
Edison International | 1.4 | |||
Consolidated Edison, Inc. | 1.4 | |||
Newfield Exploration Co. | 1.4 | |||
Hess Corp. | 1.4 | |||
Cincinnati Financial Corp. | 1.4 | |||
Total | 15.1 |
* | Excluding money market fund holdings. |
| 26 |
|
PowerShares Russell Midcap Pure Value Portfolio (PXMV) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2016
1 Year | 3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years Cumulative | 10 Years Average Annualized | 10 Years Cumulative | Fund Inception†† | |||||||||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||||||||||
Blended-Russell Midcap® Pure Value Index† | 1.70 | % | 11.46 | % | 38.47 | % | 12.25 | % | 78.24 | % | 7.04 | % | 97.43 | % | 7.82 | % | 131.62 | % | ||||||||||||||||||||
Russell Midcap® Pure Value Index | 0.52 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||
Russell Midcap® Value Index | (0.18 | ) | 10.26 | 34.03 | 10.45 | 64.40 | 7.35 | 103.34 | 8.32 | 143.88 | ||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||
NAV Return | 1.35 | 11.06 | 37.00 | 11.81 | 74.72 | 6.44 | 86.68 | 7.17 | 116.49 | |||||||||||||||||||||||||||||
Market Price Return | 1.39 | 11.05 | 36.95 | 11.80 | 74.65 | 6.44 | 86.64 | 7.15 | 116.16 |
Fund Inception: March 3, 2005
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.53%, including acquired fund fees and expenses of 0.01% and the net annual operating expense ratio was indicated as 0.40%. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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.
Blended-Index, Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index, Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index, Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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 Blended-Russell Midcap® Pure Value Index is comprised of the performance of the Dynamic Mid Cap Value IntellidexSM Index, the Fund’s underlying index from Fund inception through the conversion date, June 16, 2011, followed by the performance of the Previous Index for the period June 16, 2011 through May 22, 2015, followed by the performance of the Index for the period May 22, 2015 through April 30, 2016. |
†† | Fund, Blended-Index, Index and Benchmark Index returns are based on the inception date of the Fund. |
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|
EQWL | Manager’s Analysis | |
PowerShares Russell Top 200 Equal Weight Portfolio (EQWL) |
Effective after the close of markets on May 22, 2015, the Fund’s name changed from PowerShares Fundamental Pure Large Core Portfolio to PowerShares Russell Top 200 Equal Weight Portfolio and the underlying index changed from RAFI® Fundamental Large Core Index (the “Previous Index”) to Russell Top 200® Equal Weight Index (the “Index”). At that time, the Fund also changed its ticker symbol from PXLC to EQWL and changed its investment objective and investment policies.
As an index fund, the PowerShares Russell Top 200 Equal Weight Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Index and, through May 22, 2015, of the Previous Index. The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index and, through May 22, 2015, comprised the Previous Index.
The Index is designed to provide equal-weighted exposure to the securities of the largest 200 companies in the U.S. equity market. The Index generally is composed of all of the securities included in the Russell Top 200® Index, which is composed of the largest 200 securities of the Russell 3000® Index, an index designed to measure the performance of the largest 3,000 companies representing 95% of the U.S. equity market. Each quarter, Frank Russell Company (the “Index Provider”) groups each component security in the Russell Top 200® Index based on the Russell Global Sectors (“RGS”) classification system. The RGS system is composed of nine economic sectors: consumer discretionary, consumer staples, energy, financial services, health care, materials & processing, producer durables, technology and utilities. Once the component securities are grouped, the Index Provider allocates an equal weight to each sector and then assigns an equal weight to each constituent security within each sector. The Index Provider then screens each security for liquidity and capacity measures; a potential constituent will be included in the Index only if it is considered sufficiently liquid and has a sufficient number of outstanding shares readily available in the market. Unlike the Russell Top 200® Index, which employs a market cap-weighted methodology, the Index’s equal weighting methodology provides equal exposure to the smallest components and underweighted sectors of the Russell Top 200® Index. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned 0.78%. On a net asset value (“NAV”) basis, the Fund returned 0.81%. During the same time period, the Blended-Russell Top 200® Equal Weight Index (a composite of the returns of the Previous Index through May 22, 2015, and of the Index for the remainder of the fiscal year, referred to herein as the “Blended-Index”) returned 1.06%. During the fiscal year, the Fund fully replicated the components of the Blended-Index; therefore, the Fund’s performance, on a NAV
basis, differed from the return of the Blended-Index primarily due to fees and operating expenses that the Fund incurred during the period.
During this same time period, the Russell 1000® Index (the “Benchmark Index”) returned 0.34%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 1,020 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a similar large cap equity benchmark. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the U.S. large cap equity market.
The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a fundamental weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.
Relative to the Benchmark Index, the Fund was most overweight in the industrials sector and most underweight in the information technology sector during the fiscal year ended April 30, 2016, which both contributed to the Fund’s outperformance.
For the fiscal year ended April 30, 2016, the consumer staples sector contributed most significantly to the Fund’s return, followed by the industrials and utilities sectors, respectively. The energy sector detracted most significantly from the Fund’s return, followed by the health care and financials sectors, respectively.
Positions that contributed most significantly to the Fund’s return included UnitedHealth Group, Inc., a health care company (portfolio average weight of 0.66%), and Chemours Co. (The), a materials company (portfolio average weight of 0.28%). Positions that detracted most significantly from the Fund’s return included Micron Technology, Inc., an information technology company (portfolio average weight of 0.44%), and Williams Cos., Inc. (The), an energy company (portfolio average weight of 0.44%).
| 28 |
|
PowerShares Russell Top 200 Equal Weight Portfolio (EQWL) (continued)
Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Health Care | 16.2 | |||
Financials | 15.8 | |||
Consumer Discretionary | 14.0 | |||
Information Technology | 13.7 | |||
Industrials | 12.1 | |||
Energy | 9.2 | |||
Consumer Staples | 8.8 | |||
Materials | 5.2 | |||
Utilities | 3.4 | |||
Telecommunication Services | 1.5 | |||
Money Market Fund Plus Other Assets Less Liabilities | 0.1 | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
Devon Energy Corp. | 0.7 | |||
Chemours Co. (The) | 0.6 | |||
Williams Cos., Inc. (The) | 0.6 | |||
ConocoPhillips | 0.6 | |||
Halliburton Co. | 0.6 | |||
Anadarko Petroleum Corp. | 0.6 | |||
Bristol-Myers Squibb Co. | 0.6 | |||
Discover Financial Services | 0.6 | |||
Amazon.com, Inc. | 0.5 | |||
Occidental Petroleum Corp. | 0.5 | |||
Total | 5.9 |
* | Excluding money market fund holdings. |
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|
PowerShares Russell Top 200 Equal Weight Portfolio (EQWL) (continued)
Growth of a $10,000 Investment Since Inception†
Fund Performance History as of April 30, 2016
1 Year | 3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years Cumulative | Fund Inception† | |||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||
Blended-Russell Top 200® Equal Weight Index†† | 1.06 | % | 11.07 | % | 37.02 | % | 11.27 | % | 70.58 | % | 7.35 | % | 94.90 | % | ||||||||||||||||
Russell Top 200® Equal Weight Index | 0.10 | N/A | N/A | N/A | N/A | N/A | N/A | |||||||||||||||||||||||
Russell 1000® Index | 0.34 | 11.06 | 36.98 | 10.81 | 67.09 | 6.61 | 82.71 | |||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||
NAV Return | 0.81 | 10.68 | 35.57 | 10.85 | 67.36 | 6.77 | 85.30 | |||||||||||||||||||||||
Market Price Return | 0.78 | 10.63 | 35.39 | 10.82 | 67.18 | 6.75 | 84.97 |
Fund Inception: December 1, 2006
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.49% and the net annual operating expense ratio was indicated as 0.25%. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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.
Blended-Index, Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index, Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index, Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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.
† | Fund, Blended-Index, Index and Benchmark Index returns are based on the inception date of the Fund. |
†† | The Blended-Russell Top 200® Equal Weight Index is comprised of the performance of the Dynamic Large Cap IntellidexSM Index, the Fund’s underlying index from Fund inception through the conversion date, June 16, 2011, followed by the performance of the Previous Index for the period June 16, 2011 through May 22, 2015, followed by the performance of the Index for the period May 22, 2015 through April 30, 2016. |
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PXLG | Manager’s Analysis | |
PowerShares Russell Top 200 Pure Growth Portfolio (PXLG) |
Effective after the close of markets on May 22, 2015, the Fund’s name changed from PowerShares Fundamental Pure Large Growth Portfolio to PowerShares Russell Top 200 Pure Growth Portfolio and the underlying index changed from RAFI® Fundamental Large Growth Index (the “Previous Index”) to Russell Top 200® Pure Growth Index (the “Index”). At that time the Fund also changed its investment objective and investment policies.
As an index fund, the PowerShares Russell Top 200 Pure Growth Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Index, and, through May 22, 2015, of the Previous Index. The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index and, through May 22, 2015, comprised the Previous Index.
The Index is composed of securities selected from the Russell Top 200® Index, which is composed of the largest 200 securities of the Russell 3000® Index, an index designed to measure the performance of 95% of the U.S. equity market. Frank Russell Company (the “Index Provider”) first identifies securities in the Russell Top 200® Index with higher price-to-book ratios and higher forecasting growth values. The Index’s constituent securities are then assigned a Composite Value Score (“CVS”), which is calculated based on three characteristics (book to price (a value characteristic), sales per share growth (a growth characteristic) and medium-term growth forecast (a growth characteristic)) to identify whether they are growth or value securities. In general, stocks with lower CVS scores are considered growth stocks. The Index then weights securities in proportion to their CVS score, giving greatest weight to the securities demonstrating the most growth characteristics. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned (1.83)%. On a net asset value (“NAV”) basis, the Fund returned (1.89)%. During the same time period, the Blended-Russell Top 200® Pure Growth Index (a composite of the returns of the Previous Index through May 22, 2015, and of the Index for the remainder of the fiscal year, referred to herein as the “Blended-Index”) returned (1.51)%. During the fiscal year, the Fund fully replicated the components of the Blended-Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Blended-Index primarily due to fees and operating expenses that the Fund incurred during the period.
During this same time period, the Russell 1000® Growth Index (the “Benchmark Index”) returned 1.07%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 635 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the
Fund compare to the performance of a similar large cap growth benchmark. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the U.S. large cap equity growth market.
The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an index that employs a fundamental weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.
Relative to the Benchmark Index, the Fund was most overweight in the consumer discretionary sector and most underweight in the industrials sector during the fiscal year ended April 30, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to the Fund’s overweight position in the health care sector.
For the fiscal year ended April 30, 2016, the consumer discretionary sector contributed most significantly to the Fund’s return, followed by the information technology and financials sectors, respectively. The health care sector detracted most significantly from the Fund’s return, followed by the energy and industrials sectors, respectively.
Positions that contributed most significantly to the Fund’s return included Facebook, Inc. Class A, an information technology company (portfolio average weight of 2.87%), and Amazon.com, Inc., a consumer discretionary company (portfolio average weight of 2.85%). Positions that detracted most significantly from the Fund’s return included Illumina, Inc., a health care company (portfolio average weight of 2.30%), and Regeneron Pharmaceuticals, Inc., a health care company (portfolio average weight of 3.08%).
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PowerShares Russell Top 200 Pure Growth Portfolio (PXLG) (continued)
Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Consumer Discretionary | 31.5 | |||
Information Technology | 26.5 | |||
Health Care | 20.9 | |||
Consumer Staples | 6.4 | |||
Materials | 5.3 | |||
Financials | 4.6 | |||
Industrials | 4.5 | |||
Energy | 0.3 | |||
Money Market Fund Plus Other Assets Less Liabilities | 0.0 | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
Priceline Group, Inc. (The) | 3.7 | |||
Facebook, Inc., Class A | 3.7 | |||
American Tower Corp. REIT | 3.6 | |||
salesforce.com, inc. | 3.4 | |||
MasterCard, Inc., Class A | 3.4 | |||
Amazon.com, Inc. | 3.4 | |||
Visa, Inc., Class A | 3.2 | |||
Tesla Motors, Inc. | 3.2 | |||
Lowe’s Cos., Inc. | 3.0 | |||
Celgene Corp. | 2.9 | |||
Total | 33.5 |
* | Excluding money market fund holdings. |
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|
PowerShares Russell Top 200 Pure Growth Portfolio (PXLG) (continued)
Growth of a $10,000 Investment Since Inception†
Fund Performance History as of April 30, 2016
1 Year | 3 Years Average | 3 Years Cumulative | Fund Inception† | |||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||
Blended-Russell Top 200® Pure Growth Index†† | (1.51 | )% | 11.72 | % | 39.44 | % | 13.27 | % | 83.54 | % | ||||||||||||
Russell Top 200® Pure Growth Index | 0.34 | N/A | N/A | N/A | N/A | |||||||||||||||||
Russell 1000® Growth Index | 1.07 | 12.47 | 42.28 | 13.46 | 85.02 | |||||||||||||||||
Fund | ||||||||||||||||||||||
NAV Return | (1.89 | ) | 11.27 | 37.77 | 12.83 | 80.11 | ||||||||||||||||
Market Price Return | (1.83 | ) | 11.30 | 37.88 | 12.85 | 80.28 |
Fund Inception: June 16, 2011
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.39. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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.
Blended-Index, Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index, Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index, Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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.
† | Fund, Blended-Index, Index and Benchmark Index returns are based on the inception date of the Fund. |
†† | The Blended-Russell Top 200® Pure Growth Index performance is comprised of the performance of the Previous Index, from Fund inception through the conversion date, May 22, 2015, followed by the performance of the Index starting from the conversion date through April 30, 2016. |
| 33 |
|
PXLV | Manager’s Analysis | |
PowerShares Russell Top 200 Pure Value Portfolio (PXLV) |
Effective after the close of markets on May 22, 2015, the Fund’s name changed from PowerShares Fundamental Pure Large Value Portfolio to PowerShares Russell Top 200 Pure Value Portfolio and the underlying index changed from RAFI® Fundamental Large Value Index (the “Previous Index”) to Russell Top 200® Pure Value Index (the “Index”). At that time the Fund also changed its investment objective and investment policies.
As an index fund, the PowerShares Russell Top 200 Pure Value Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Index and, through May 22, 2015, of the Previous Index. The Fund generally will invest at least 90% of its total assets in the securities that comprise the Index and, through May 22, 2015, comprised the Previous Index.
The Index is composed of securities selected from the Russell Top 200® Index, which includes the largest 200 securities of the Russell 3000® Index, an index measuring the performance of 95% of the U.S. equity market. Frank Russell Company (the “Index Provider”) first identifies securities in the Russell Top 200® Index with lower price-to-book ratios and lower forecasting growth values. The Index’s constituent securities are then assigned a Composite Value Score (“CVS”), which is calculated based on three characteristics (book to price (a value characteristic), sales per share growth (a growth characteristic) and medium-term growth forecast (a growth characteristic)) to identify whether they are growth or value securities. In general, stocks with higher CVS scores are considered value stocks. The Index then weights securities in proportion to their CVS score, giving greatest weight to the securities demonstrating the most value characteristics. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned (0.92)%. On a net asset value (“NAV”) basis, the Fund returned (0.84)%. During the same time period, the Blended-Russell Top 200® Pure Value Index (a composite of the returns of the Previous Index through May 22, 2015, and of the Index for the remainder of the fiscal year, referred to herein as the “Blended-Index”) returned (0.53)%. During the fiscal year, the Fund fully replicated the components of the Blended-Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Blended-Index primarily due to fees and operating expenses that the Fund incurred during the period.
During this same time period, the Russell 1000® Value Index (the “Benchmark Index”) returned (0.40)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 690 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a similar large cap value
benchmark. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the U.S. large cap value equity market.
The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an index that employs a fundamental weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.
Relative to the Benchmark Index, the Fund was most overweight in the utilities sector and most underweight in the health care sector during the fiscal year ended April 30, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to fees and operating expenses incurred by the Fund as well as the Fund’s overweight position in the energy sector.
For the fiscal year ended April 30, 2016, the utilities sector contributed most significantly to the Fund’s return, followed by the industrials and health care sectors, respectively. The energy sector detracted most significantly from the Fund’s return, followed by the financials and information technology sectors, respectively.
Positions that contributed most significantly to the Fund’s return included General Electric Co., an industrials company (portfolio average weight of 3.44%), and Southern Co. (The), a utilities company (portfolio average weight of 2.62%). Positions that detracted most significantly from the Fund’s return included ConocoPhillips, an energy company (portfolio average weight of 2.41%), and Devon Energy Corp., an energy company (portfolio average weight of 0.67%).
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|
PowerShares Russell Top 200 Pure Value Portfolio (PXLV) (continued)
Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Financials | 36.2 | |||
Energy | 20.7 | |||
Utilities | 16.1 | |||
Information Technology | 7.0 | |||
Industrials | 6.6 | |||
Consumer Staples | 5.2 | |||
Consumer Discretionary | 3.2 | |||
Telecommunication Services | 2.9 | |||
Health Care | 2.1 | |||
Money Market Fund Plus Other Assets Less Liabilities | 0.0 | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
General Electric Co. | 3.5 | |||
Chubb Ltd. | 3.3 | |||
Apache Corp. | 3.2 | |||
Occidental Petroleum Corp. | 3.2 | |||
American Electric Power Co., Inc. | 3.2 | |||
Duke Energy Corp. | 3.1 | |||
Yahoo!, Inc. | 3.1 | |||
Southern Co. (The) | 3.0 | |||
PNC Financial Services Group, Inc. (The) | 2.9 | |||
Chevron Corp. | 2.8 | |||
Total | 31.3 |
* | Excluding money market fund holdings. |
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|
PowerShares Russell Top 200 Pure Value Portfolio (PXLV) (continued)
Growth of a $10,000 Investment Since Inception†
Fund Performance History as of April 30, 2016
1 Year | 3 Years Average Annualized | 3 Years Cumulative | Fund Inception† | |||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||
Blended-Russell Top 200® Pure Value Index†† | (0.53 | )% | 8.33 | % | 27.12 | % | 11.55 | % | 70.29 | % | ||||||||||||
Russell Top 200® Pure Value Index | (1.31 | ) | N/A | N/A | N/A | N/A | ||||||||||||||||
Russell 1000® Value Index | (0.40 | ) | 9.59 | 31.62 | 11.95 | 73.34 | ||||||||||||||||
Fund | ||||||||||||||||||||||
NAV Return | (0.84 | ) | 7.96 | 25.83 | 11.13 | 67.27 | ||||||||||||||||
Market Price Return | (0.92 | ) | 7.92 | 25.70 | 11.14 | 67.36 |
Fund Inception: June 16, 2011
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.58% and the net annual operating expense ratio was indicated as 0.39%. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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.
Blended-Index, Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index, Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index, Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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.
† | Fund, Blended-Index, Index and Benchmark Index returns are based on the inception date of the Fund. |
†† | The Blended-Russell Top 200® Pure Value Index performance is comprised of the performance of the Previous Index, from Fund inception through the conversion date, May 22, 2015, followed by the performance of the Index starting from the conversion date through April 30, 2016. |
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PZI | Manager’s Analysis | |
PowerShares Zacks Micro Cap Portfolio (PZI) |
As an index fund, the PowerShares Zacks Micro Cap Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. 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 invest at least 90% of its total assets in common stocks of micro capitalization companies that comprise the Index.
Zacks Investment Research (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its guidelines and mandated procedures, the Index Provider designs the selection methodology of the Index to identify companies with potentially superior risk-return profiles, as determined by the Index Provider. The objective of the Index is to actively represent a group of stocks that have the potential to outperform passive benchmark micro capitalization indices and other actively managed U.S. micro capitalization strategies. The Index constituent selection methodology utilizes a proprietary composite scoring system that measures companies on the basis of relative value and momentum, and is designed to be an effective, quantitative approach to selecting stocks with the greatest potential for capital appreciation from the micro capitalization subset of the domestic equity universe. The Index Provider selects U.S. stocks from a universe of 7,000 domestic companies. For the purpose of this constituent selection, the micro capitalization subset is defined relative to the entire investable universe of stocks, with the upper threshold equal to 0.15% of the capitalization of the largest capitalization domestic company at the time of selection and a minimum capitalization of approximately 0.015% of the largest capitalization domestic company at the time of selection. The Index Provider ranks and sorts each company from highest to lowest by each factor subset, then combines the rankings to establish a composite profile. A security may be an Index constituent only if it achieves a minimum threshold ranking on each factor. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned (1.82)%. On a net asset value (“NAV”) basis, the Fund returned (1.94)%. During the same time period, the Index returned (0.96)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period as well as the impact of trading costs associated with the quarterly rebalance.
During this same time period, the Russell Microcap® Index (the “Benchmark Index”) returned (8.08)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 1,625 securities. The Fund selected this additional comparative benchmark to help investors better understand how the investment results of the
Fund compare to the performance of a similar micro-cap U.S. stock benchmark. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a representation of the micro-cap segment of the U.S. market.
The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an index that employs a proprietary stock selection methodology that differs from the stock selection methodology of the Benchmark Index.
Relative to the Benchmark Index, the Fund was most overweight in the financials sector and most underweight in the health care sector during the fiscal year ended April 30, 2016. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to stock selection within the health care, materials, and energy sectors.
For the fiscal year ended April 30, 2016, the materials sector contributed most significantly to the Fund’s return, followed by the financials and consumer staples sectors, respectively. The health care sector detracted most significantly from the Fund’s return, followed by the consumer discretionary and industrials sectors, respectively.
Positions that contributed most significantly to the Fund’s return included Coeur Mining, Inc., a materials company (portfolio average weight of 0.11%), and First Majestic Silver Corp., a materials company (portfolio average weight of 0.11%). Positions that detracted most significantly from the Fund’s return included Blucora, Inc., an information technology company (no longer held at fiscal year-end), and TravelCenters of America LLC, a consumer discretionary company (no longer held at fiscal year-end).
| 37 |
|
PowerShares Zacks Micro Cap Portfolio (PZI) (continued)
Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Financials | 48.8 | |||
Industrials | 10.7 | |||
Consumer Discretionary | 10.4 | |||
Energy | 8.8 | |||
Information Technology | 7.1 | |||
Materials | 6.0 | |||
Health Care | 3.3 | |||
Consumer Staples | 2.2 | |||
Utilities | 1.7 | |||
Telecommunication Services | 1.0 | |||
Pharmaceuticals | 0.0 | |||
Money Market Funds Plus Other Assets Less Liabilities | 0.0 |
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
Silver Standard Resources, Inc. | 0.4 | |||
Fortuna Silver Mines, Inc. | 0.4 | |||
First Majestic Silver Corp. | 0.4 | |||
IAMGOLD Corp. | 0.4 | |||
Pretium Resources, Inc. | 0.4 | |||
Asanko Gold, Inc. | 0.4 | |||
Parker Drilling Co. | 0.4 | |||
Coeur Mining, Inc. | 0.3 | |||
Alliance One International, Inc. | 0.3 | |||
Richmont Mines, Inc. | 0.3 | |||
Total | 3.7 |
* | Excluding money market fund holdings. |
| 38 |
|
PowerShares Zacks Micro Cap Portfolio (PZI) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2016
1 Year | 3 Years Average Annualized | 3 Years | 5 Years Average Annualized | 5 Years | 10 Years Average Annualized | 10 Years | Fund Inception† | |||||||||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||||||||||
Zacks Micro Cap Index™ | (0.96 | )% | 6.93 | % | 22.28 | % | 6.81 | % | 39.02 | % | 0.81 | % | 8.39 | % | 2.39 | % | 28.78 | % | ||||||||||||||||||||
Russell Microcap® Index | (8.08 | ) | 7.49 | 24.20 | 6.97 | 40.04 | 3.56 | 41.92 | 4.96 | 67.91 | ||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||
NAV Return | (1.94 | ) | 6.13 | 19.55 | 5.97 | 33.63 | (0.04 | ) | (0.42 | ) | 1.53 | 17.70 | ||||||||||||||||||||||||||
Market Price Return | (1.82 | ) | 6.21 | 19.81 | 5.99 | 33.75 | (0.04 | ) | (0.41 | ) | 1.52 | 17.55 |
Fund Inception: August 18, 2005
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 1.14%, including acquired fund fees and expenses of 0.24% and the net annual operating expense ratio was indicated as 0.94%. 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 Market Price returns assume that dividends and
capital gain distributions have been reinvested in the Fund at NAV and Market 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 and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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.
† | Fund, Index and Benchmark Index returns are based on the inception date of the Fund. |
| 39 |
|
Schedule of Investments(a)
PowerShares Dynamic Large Cap Growth Portfolio (PWB)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks—100.0% | ||||||||
Consumer Discretionary—33.0% | ||||||||
25,643 | Amazon.com, Inc.(b) | $ | 16,913,866 | |||||
7,807 | AutoZone, Inc.(b) | 5,974,151 | ||||||
126,230 | Carnival Corp. | 6,191,581 | ||||||
80,268 | Dollar General Corp. | 6,574,752 | ||||||
112,768 | Home Depot, Inc. (The) | 15,098,508 | ||||||
88,307 | Lowe’s Cos., Inc. | 6,713,098 | ||||||
89,537 | Marriott International, Inc., Class A | 6,275,648 | ||||||
121,630 | McDonald’s Corp. | 15,384,979 | ||||||
227,444 | NIKE, Inc., Class B | 13,405,549 | ||||||
23,209 | O’Reilly Automotive, Inc.(b) | 6,096,540 | ||||||
4,865 | Priceline Group, Inc. (The)(b) | 6,536,906 | ||||||
108,403 | Ross Stores, Inc. | 6,155,122 | ||||||
244,051 | Starbucks Corp. | 13,722,988 | ||||||
80,671 | TJX Cos., Inc. (The) | 6,116,475 | ||||||
149,387 | Walt Disney Co. (The) | 15,425,702 | ||||||
|
| |||||||
146,585,865 | ||||||||
|
| |||||||
Consumer Staples—17.3% | ||||||||
60,952 | Brown-Forman Corp., Class B | 5,870,897 | ||||||
47,740 | Clorox Co. (The) | 5,978,480 | ||||||
42,956 | Constellation Brands, Inc., Class A | 6,703,713 | ||||||
40,767 | Costco Wholesale Corp. | 6,038,816 | ||||||
145,791 | CVS Health Corp. | 14,651,995 | ||||||
66,197 | Dr Pepper Snapple Group, Inc. | 6,017,969 | ||||||
66,479 | Estee Lauder Cos., Inc. (The), Class A | 6,373,342 | ||||||
142,005 | Hormel Foods Corp. | 5,474,293 | ||||||
154,677 | Kroger Co. (The) | 5,474,019 | ||||||
178,937 | Walgreens Boots Alliance, Inc. | 14,186,125 | ||||||
|
| |||||||
76,769,649 | ||||||||
|
| |||||||
Financials—4.3% | ||||||||
239,670 | Charles Schwab Corp. (The) | 6,809,025 | ||||||
65,493 | CME Group, Inc., Class A | 6,019,461 | ||||||
25,432 | Intercontinental Exchange, Inc. | 6,104,443 | ||||||
|
| |||||||
18,932,929 | ||||||||
|
| |||||||
Health Care—19.0% | ||||||||
69,705 | AmerisourceBergen Corp. | 5,931,896 | ||||||
228,724 | Bristol-Myers Squibb Co. | 16,509,298 | ||||||
73,491 | Cardinal Health, Inc. | 5,766,104 | ||||||
43,201 | Cigna Corp. | 5,985,067 | ||||||
69,397 | Edwards Lifesciences Corp.(b) | 7,370,655 | ||||||
193,452 | Eli Lilly & Co. | 14,611,430 | ||||||
34,145 | Humana, Inc. | 6,046,055 | ||||||
10,753 | Intuitive Surgical, Inc.(b) | 6,735,249 | ||||||
117,349 | UnitedHealth Group, Inc. | 15,452,516 | ||||||
|
| |||||||
84,408,270 | ||||||||
|
| |||||||
Industrials—2.7% | ||||||||
127,498 | Delta Air Lines, Inc. | 5,312,842 | ||||||
144,700 | Southwest Airlines Co. | 6,455,067 | ||||||
|
| |||||||
11,767,909 | ||||||||
|
| |||||||
Information Technology—22.3% | ||||||||
191,344 | Activision Blizzard, Inc. | 6,595,628 | ||||||
19,643 | Alphabet, Inc., Class A(b) | 13,904,887 | ||||||
45,841 | Broadcom Ltd. (Singapore) | 6,681,326 | ||||||
94,678 | Electronic Arts, Inc.(b) | 5,855,834 | ||||||
131,931 | Facebook, Inc., Class A(b) | 15,512,447 |
Number of Shares | Value | |||||||
Common Stocks (continued) | ||||||||
Information Technology (continued) | ||||||||
62,278 | Fiserv, Inc.(b) | $ | 6,085,806 | |||||
63,729 | Intuit, Inc. | 6,429,619 | ||||||
162,591 | MasterCard, Inc., Class A | 15,769,701 | ||||||
192,614 | NVIDIA Corp. | 6,843,575 | ||||||
195,765 | Visa, Inc., Class A | 15,120,889 | ||||||
|
| |||||||
98,799,712 | ||||||||
|
| |||||||
Telecommunication Services—1.4% | ||||||||
162,850 | T-Mobile US, Inc.(b) | 6,396,748 | ||||||
|
| |||||||
Total Common Stocks (Cost $407,627,522) | 443,661,082 | |||||||
|
| |||||||
Money Market Fund—0.0% | ||||||||
52,887 | Invesco Premier Portfolio—Institutional Class, 0.39%(c) (Cost $52,887) | 52,887 | ||||||
|
| |||||||
Total Investments (Cost $407,680,409)—100.0% | 443,713,969 | |||||||
Other assets less liabilities—0.0% | 37,899 | |||||||
|
| |||||||
Net Assets—100.0% | $ | 443,751,868 | ||||||
|
|
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 40 |
|
Schedule of Investments(a)
PowerShares Dynamic Large Cap Value Portfolio (PWV)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks—100.0% | ||||||||
Consumer Discretionary—5.7% | ||||||||
1,051,541 | Ford Motor Co. | $ | 14,258,896 | |||||
442,546 | General Motors Co. | 14,072,963 | ||||||
168,956 | Omnicom Group, Inc. | 14,018,279 | ||||||
167,192 | Target Corp. | 13,291,764 | ||||||
|
| |||||||
55,641,902 | ||||||||
|
| |||||||
Consumer Staples—4.7% | ||||||||
376,908 | Archer-Daniels-Midland Co. | 15,053,705 | ||||||
460,025 | Wal-Mart Stores, Inc. | 30,761,872 | ||||||
|
| |||||||
45,815,577 | ||||||||
|
| |||||||
Energy—11.4% | ||||||||
362,729 | Chevron Corp. | 37,063,649 | ||||||
374,267 | Exxon Mobil Corp. | 33,085,203 | ||||||
383,185 | Marathon Petroleum Corp. | 14,974,870 | ||||||
165,773 | Phillips 66 | 13,611,621 | ||||||
219,791 | Valero Energy Corp. | 12,939,096 | ||||||
|
| |||||||
111,674,439 | ||||||||
|
| |||||||
Financials—15.5% | ||||||||
217,928 | Aflac, Inc. | 15,030,494 | ||||||
203,866 | Allstate Corp. (The) | 13,261,483 | ||||||
256,658 | American International Group, Inc. | 14,326,650 | ||||||
306,155 | Hartford Financial Services Group, Inc. (The) | 13,587,159 | ||||||
531,741 | JPMorgan Chase & Co. | 33,606,031 | ||||||
379,640 | SunTrust Banks, Inc. | 15,846,174 | ||||||
120,900 | Travelers Cos., Inc. (The) | 13,286,910 | ||||||
636,496 | Wells Fargo & Co. | 31,812,070 | ||||||
|
| |||||||
150,756,971 | ||||||||
|
| |||||||
Health Care—16.2% | ||||||||
98,964 | Anthem, Inc. | 13,931,162 | ||||||
347,294 | Gilead Sciences, Inc. | 30,634,804 | ||||||
186,159 | HCA Holdings, Inc.(b) | 15,008,138 | ||||||
289,245 | Johnson & Johnson | 32,418,580 | ||||||
604,189 | Merck & Co., Inc. | 33,133,725 | ||||||
1,012,118 | Pfizer, Inc. | 33,106,380 | ||||||
|
| |||||||
158,232,789 | ||||||||
|
| |||||||
Industrials—7.9% | ||||||||
320,838 | American Airlines Group, Inc. | 11,129,870 | ||||||
95,639 | General Dynamics Corp. | 13,439,192 | ||||||
138,125 | Illinois Tool Works, Inc. | 14,436,825 | ||||||
105,340 | Raytheon Co. | 13,309,709 | ||||||
231,751 | United Continental Holdings, Inc.(b) | 10,616,513 | ||||||
233,987 | Waste Management, Inc. | 13,756,096 | ||||||
|
| |||||||
76,688,205 | ||||||||
|
| |||||||
Information Technology—18.0% | ||||||||
690,140 | Applied Materials, Inc. | 14,127,166 | ||||||
1,158,515 | Cisco Systems, Inc. | 31,847,577 | ||||||
975,647 | Hewlett Packard Enterprise Co. | 16,254,279 | ||||||
1,232,400 | HP, Inc. | 15,121,548 | ||||||
1,026,719 | Intel Corp. | 31,089,051 | ||||||
231,733 | International Business Machines Corp. | 33,819,114 | ||||||
827,818 | Oracle Corp. | 32,996,826 | ||||||
|
| |||||||
175,255,561 | ||||||||
|
|
Number of Shares | Value | |||||||
Common Stocks (continued) | ||||||||
Materials—2.8% | ||||||||
269,035 | Dow Chemical Co. (The) | $ | 14,153,932 | |||||
163,557 | LyondellBasell Industries NV, Class A | 13,521,257 | ||||||
|
| |||||||
27,675,189 | ||||||||
|
| |||||||
Telecommunication Services—6.4% | ||||||||
824,032 | AT&T, Inc. | 31,988,922 | ||||||
599,689 | Verizon Communications, Inc. | 30,548,158 | ||||||
|
| |||||||
62,537,080 | ||||||||
|
| |||||||
Utilities—11.4% | ||||||||
213,321 | American Electric Power Co., Inc. | 13,545,884 | ||||||
186,392 | Consolidated Edison, Inc. | 13,904,843 | ||||||
194,956 | Edison International | 13,785,339 | ||||||
413,259 | Exelon Corp. | 14,501,258 | ||||||
376,590 | PPL Corp. | 14,174,848 | ||||||
308,173 | Public Service Enterprise Group, Inc. | 14,216,020 | ||||||
272,102 | Southern Co. (The) | 13,632,310 | ||||||
333,911 | Xcel Energy, Inc. | 13,366,457 | ||||||
|
| |||||||
111,126,959 | ||||||||
|
| |||||||
Total Investments (Cost $926,973,220)—100.0% | 975,404,672 | |||||||
Other assets less liabilities—(0.0)% | (105,850 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 975,298,822 | ||||||
|
|
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | Non-income producing security. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 41 |
|
Schedule of Investments(a)
PowerShares Russell 2000 Equal Weight Portfolio (EQWS)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.0% | ||||||||
Consumer Discretionary—10.8% | ||||||||
622 | 1-800-FLOWERS.COM, Inc., Class A(b) | $ | 4,883 | |||||
216 | 2U, Inc.(b) | 6,054 | ||||||
147 | Abercrombie & Fitch Co., Class A | 3,929 | ||||||
161 | AMC Entertainment Holdings, Inc., Class A | 4,537 | ||||||
313 | American Axle & Manufacturing Holdings, Inc.(b) | 4,855 | ||||||
284 | American Eagle Outfitters, Inc. | 4,064 | ||||||
230 | American Public Education, Inc.(b) | 5,327 | ||||||
120 | America’s Car-Mart, Inc.(b) | 3,188 | ||||||
589 | Apollo Education Group, Inc., Class A(b) | 4,594 | ||||||
281 | Arctic Cat, Inc. | 4,673 | ||||||
78 | Asbury Automotive Group, Inc.(b) | 4,728 | ||||||
451 | Ascena Retail Group, Inc.(b) | 3,973 | ||||||
436 | Ascent Capital Group, Inc., Series A(b) | 6,571 | ||||||
487 | Barnes & Noble Education, Inc.(b) | 4,558 | ||||||
383 | Barnes & Noble, Inc. | 4,500 | ||||||
146 | Bassett Furniture Industries, Inc. | 4,308 | ||||||
562 | Beazer Homes USA, Inc.(b) | 4,620 | ||||||
503 | Belmond Ltd., Class A (United Kingdom)(b) | 4,607 | ||||||
422 | Big 5 Sporting Goods Corp. | 5,102 | ||||||
103 | Big Lots, Inc. | 4,724 | ||||||
15 | Biglari Holdings, Inc.(b) | 5,609 | ||||||
111 | BJ’s Restaurants, Inc.(b) | 4,951 | ||||||
1,031 | Black Diamond, Inc.(b) | 4,382 | ||||||
286 | Bloomin’ Brands, Inc. | 5,348 | ||||||
184 | Blue Nile, Inc. | 4,744 | ||||||
103 | Bob Evans Farms, Inc. | 4,691 | ||||||
287 | Bojangles’, Inc.(b) | 5,060 | ||||||
502 | Boot Barn Holdings, Inc.(b) | 4,116 | ||||||
235 | Boyd Gaming Corp.(b) | 4,380 | ||||||
605 | Bravo Brio Restaurant Group, Inc.(b) | 4,459 | ||||||
453 | Bridgepoint Education, Inc.(b) | 4,322 | ||||||
74 | Bright Horizons Family Solutions, Inc.(b) | 4,856 | ||||||
138 | Buckle, Inc. (The) | 3,994 | ||||||
31 | Buffalo Wild Wings, Inc.(b) | 4,143 | ||||||
366 | Build-A-Bear Workshop, Inc.(b) | 4,820 | ||||||
84 | Burlington Stores, Inc.(b) | 4,785 | ||||||
797 | Caesars Acquisition Co., Class A(b) | 6,033 | ||||||
724 | Caesars Entertainment Corp.(b) | 4,945 | ||||||
144 | CalAtlantic Group, Inc. | 4,661 | ||||||
168 | Caleres, Inc. | 4,235 | ||||||
517 | Callaway Golf Co. | 4,829 | ||||||
1,052 | Cambium Learning Group, Inc.(b) | 4,787 | ||||||
90 | Capella Education Co. | 4,978 | ||||||
1,077 | Career Education Corp.(b) | 5,751 | ||||||
153 | Carmike Cinemas, Inc.(b) | 4,588 | ||||||
223 | Carriage Services, Inc. | 5,448 | ||||||
341 | Carrols Restaurant Group, Inc.(b) | 4,743 | ||||||
122 | Cato Corp. (The), Class A | 4,464 | ||||||
51 | Cavco Industries, Inc.(b) | 4,472 | ||||||
1,837 | Central European Media Enterprises Ltd., Class A (Bermuda)(b) | 4,886 | ||||||
290 | Century Communities, Inc.(b) | 5,000 | ||||||
90 | Cheesecake Factory, Inc. (The) | 4,591 | ||||||
1,069 | Chegg, Inc.(b) | 4,853 | ||||||
261 | Cherokee, Inc.(b) | 4,082 | ||||||
367 | Chico’s FAS, Inc. | 4,628 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Consumer Discretionary (continued) | ||||||||
57 | Children’s Place, Inc. (The) | $ | 4,441 | |||||
1,954 | Christopher & Banks Corp.(b) | 5,080 | ||||||
32 | Churchill Downs, Inc. | 4,294 | ||||||
151 | Chuy’s Holdings, Inc.(b) | 4,612 | ||||||
264 | Citi Trends, Inc. | 4,741 | ||||||
348 | ClubCorp Holdings, Inc. | 4,646 | ||||||
305 | Collectors Universe, Inc. | 5,304 | ||||||
77 | Columbia Sportswear Co. | 4,510 | ||||||
296 | Conn’s, Inc.(b) | 4,067 | ||||||
765 | Container Store Group, Inc. (The)(b) | 5,432 | ||||||
130 | Cooper Tire & Rubber Co. | 4,490 | ||||||
65 | Cooper-Standard Holding, Inc.(b) | 5,012 | ||||||
410 | Core-Mark Holding Co., Inc. | 33,481 | ||||||
31 | Cracker Barrel Old Country Store, Inc. | 4,539 | ||||||
524 | Crocs, Inc.(b) | 4,375 | ||||||
908 | Crown Media Holdings, Inc., Class A(b) | 4,604 | ||||||
169 | CSS Industries, Inc. | 4,725 | ||||||
513 | Culp, Inc. | 13,461 | ||||||
9,261 | Cumulus Media, Inc., Class A(b) | 3,441 | ||||||
24 | Daily Journal Corp.(b) | 4,714 | ||||||
341 | Dana Holding Corp. | 4,409 | ||||||
121 | Dave & Buster’s Entertainment, Inc.(b) | 4,683 | ||||||
81 | Deckers Outdoor Corp.(b) | 4,683 | ||||||
290 | Del Frisco’s Restaurant Group, Inc.(b) | 4,620 | ||||||
463 | Denny’s Corp.(b) | 4,579 | ||||||
928 | Destination XL Group, Inc.(b) | 4,983 | ||||||
255 | DeVry Education Group, Inc. | 4,424 | ||||||
200 | Diamond Resorts International, Inc.(b) | 4,242 | ||||||
51 | DineEquity, Inc. | 4,386 | ||||||
87 | Dorman Products, Inc.(b) | 4,680 | ||||||
187 | DreamWorks Animation SKG, Inc., Class A(b) | 7,465 | ||||||
74 | Drew Industries, Inc. | 4,797 | ||||||
243 | Duluth Holdings, Inc., Class B(b) | 5,781 | ||||||
288 | E.W. Scripps Co. (The), Class A(b) | 4,372 | ||||||
374 | El Pollo Loco Holdings, Inc.(b) | 4,933 | ||||||
421 | Eldorado Resorts, Inc.(b) | 5,519 | ||||||
358 | Empire Resorts, Inc.(b) | 5,954 | ||||||
442 | Entercom Communications Corp., Class A(b) | 5,012 | ||||||
639 | Entravision Communications Corp., Class A | 5,080 | ||||||
409 | Eros International PLC, Class A(b) | 5,472 | ||||||
389 | Escalade, Inc. | 4,641 | ||||||
150 | Ethan Allen Interiors, Inc. | 5,106 | ||||||
532 | Etsy, Inc.(b) | 4,671 | ||||||
4,673 | EVINE Live, Inc.(b) | 7,196 | ||||||
223 | Express, Inc.(b) | 4,054 | ||||||
508 | Federal-Mogul Holdings Corp.(b) | 4,694 | ||||||
1,036 | Fenix Parts, Inc.(b) | 5,221 | ||||||
148 | Fiesta Restaurant Group, Inc.(b) | 4,752 | ||||||
216 | Finish Line, Inc. (The), Class A | 4,266 | ||||||
113 | Five Below, Inc.(b) | 4,712 | ||||||
106 | Flexsteel Industries, Inc. | 4,334 | ||||||
300 | Fogo de Chao, Inc.(b) | 5,007 | ||||||
291 | Fox Factory Holding Corp.(b) | 5,037 | ||||||
255 | Francesca’s Holdings Corp.(b) | 4,233 | ||||||
322 | Fred’s, Inc., Class A | 4,724 | ||||||
180 | FTD Cos., Inc.(b) | 5,006 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 42 |
|
PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Consumer Discretionary (continued) | ||||||||
66 | Genesco, Inc.(b) | $ | 4,566 | |||||
116 | Gentherm, Inc.(b) | 4,262 | ||||||
101 | G-III Apparel Group Ltd.(b) | 4,570 | ||||||
640 | Global Eagle Entertainment, Inc.(b) | 5,126 | ||||||
111 | Grand Canyon Education, Inc.(b) | 4,854 | ||||||
402 | Gray Television, Inc.(b) | 5,166 | ||||||
3,180 | Green Brick Partners, Inc.(b) | 23,437 | ||||||
80 | Group 1 Automotive, Inc. | 5,267 | ||||||
252 | Guess?, Inc. | 4,624 | ||||||
256 | Habit Restaurants, Inc. (The), Class A(b) | 4,288 | ||||||
1,795 | Harte-Hanks, Inc. | 3,267 | ||||||
222 | Haverty Furniture Cos., Inc. | 4,145 | ||||||
45 | Helen of Troy Ltd.(b) | 4,479 | ||||||
352 | Hemisphere Media Group, Inc., Class A(b) | 4,210 | ||||||
129 | Hibbett Sports, Inc.(b) | 4,657 | ||||||
141 | Hooker Furniture Corp. | 3,497 | ||||||
385 | Horizon Global Corp.(b) | 4,724 | ||||||
240 | Houghton Mifflin Harcourt Co.(b) | 4,922 | ||||||
3,172 | Hovnanian Enterprises, Inc., Class A(b) | 5,297 | ||||||
87 | HSN, Inc. | 4,614 | ||||||
569 | Iconix Brand Group, Inc.(b) | 4,825 | ||||||
152 | IMAX Corp.(b) | 4,864 | ||||||
496 | Installed Building Products, Inc.(b) | 13,184 | ||||||
127 | International Speedway Corp., Class A | 4,253 | ||||||
334 | Interval Leisure Group, Inc., Class W | 4,716 | ||||||
586 | Intrawest Resorts Holdings, Inc.(b) | 5,063 | ||||||
151 | iRobot Corp.(b) | 5,644 | ||||||
337 | Isle of Capri Casinos, Inc.(b) | 5,021 | ||||||
480 | J. Alexander’s Holdings, Inc.(b) | 4,944 | ||||||
74 | Jack in the Box, Inc. | 4,999 | ||||||
672 | JAKKS Pacific, Inc.(b) | 5,040 | ||||||
385 | Jamba, Inc.(b) | 5,001 | ||||||
211 | Johnson Outdoors, Inc., Class A | 5,091 | ||||||
485 | K12, Inc.(b) | 5,961 | ||||||
336 | KB Home | 4,560 | ||||||
275 | Kirkland’s, Inc. | 4,516 | ||||||
380 | Kona Grill, Inc.(b) | 5,062 | ||||||
308 | Krispy Kreme Doughnuts, Inc.(b) | 5,362 | ||||||
385 | La Quinta Holdings, Inc.(b) | 4,916 | ||||||
173 | Lands’ End, Inc.(b) | 4,209 | ||||||
180 | La-Z-Boy, Inc. | 4,657 | ||||||
199 | LGI Homes, Inc.(b) | 5,574 | ||||||
253 | Libbey, Inc. | 4,706 | ||||||
247 | Liberty Tax, Inc., Class A | 2,952 | ||||||
226 | Liberty TripAdvisor Holdings, Inc., Series A(b) | 4,986 | ||||||
401 | LifeLock, Inc.(b) | 4,668 | ||||||
350 | Lifetime Brands, Inc. | 6,045 | ||||||
53 | Lithia Motors, Inc., Class A | 4,400 | ||||||
145 | Loral Space & Communications, Inc.(b) | 5,319 | ||||||
365 | Lumber Liquidators Holdings, Inc.(b) | 5,442 | ||||||
257 | M/I Homes, Inc.(b) | 5,166 | ||||||
308 | Malibu Boats, Inc., Class A(b) | 5,421 | ||||||
241 | Marcus Corp. (The) | 4,663 | ||||||
633 | Marine Products Corp. | 5,184 | ||||||
246 | MarineMax, Inc.(b) | 4,676 | ||||||
71 | Marriott Vacations Worldwide Corp. | 4,447 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Consumer Discretionary (continued) | ||||||||
111 | Mattress Firm Holding Corp.(b) | $ | 4,331 | |||||
342 | MCBC Holdings, Inc.(b) | 4,590 | ||||||
192 | MDC Holdings, Inc. | 4,725 | ||||||
204 | MDC Partners, Inc., Class A | 4,129 | ||||||
285 | Media General, Inc.(b) | 4,939 | ||||||
99 | Meredith Corp. | 5,080 | ||||||
132 | Meritage Homes Corp.(b) | 4,492 | ||||||
299 | Metaldyne Performance Group, Inc. | 4,763 | ||||||
545 | Modine Manufacturing Co.(b) | 5,891 | ||||||
242 | Monarch Casino & Resort, Inc.(b) | 4,598 | ||||||
65 | Monro Muffler Brake, Inc. | 4,499 | ||||||
125 | Motorcar Parts of America, Inc.(b) | 4,009 | ||||||
155 | Movado Group, Inc. | 4,373 | ||||||
102 | NACCO Industries, Inc., Class A | 6,071 | ||||||
318 | National CineMedia, Inc. | 4,516 | ||||||
247 | Nautilus, Inc.(b) | 4,357 | ||||||
414 | New Home Co., Inc. (The)(b) | 4,608 | ||||||
283 | New Media Investment Group, Inc. | 4,542 | ||||||
370 | New York Times Co. (The), Class A | 4,743 | ||||||
106 | Nexstar Broadcasting Group, Inc., Class A | 5,441 | ||||||
397 | Noodles & Co., Class A(b) | 4,427 | ||||||
239 | Nutrisystem, Inc. | 5,263 | ||||||
206 | Ollie’s Bargain Outlet Holdings, Inc.(b) | 5,449 | ||||||
128 | Outerwall, Inc. | 5,288 | ||||||
323 | Overstock.com, Inc.(b) | 4,713 | ||||||
68 | Oxford Industries, Inc. | 4,517 | ||||||
85 | Papa John’s International, Inc. | 4,810 | ||||||
428 | Papa Murphy’s Holdings, Inc.(b) | 5,376 | ||||||
325 | Party City Holdco, Inc.(b) | 4,657 | ||||||
305 | Penn National Gaming, Inc.(b) | 4,920 | ||||||
1,494 | Performance Sports Group Ltd.(b) | 5,543 | ||||||
250 | Perry Ellis International, Inc.(b) | 4,763 | ||||||
1,785 | PetMed Express, Inc. | 32,666 | ||||||
708 | Pier 1 Imports, Inc. | 4,878 | ||||||
143 | Pinnacle Entertainment, Inc.(b) | 1,579 | ||||||
297 | Planet Fitness, Inc., Class A(b) | 4,562 | ||||||
54 | Pool Corp. | 4,720 | ||||||
91 | Popeyes Louisiana Kitchen, Inc.(b) | 4,892 | ||||||
358 | Potbelly Corp.(b) | 5,102 | ||||||
399 | Reading International, Inc., Class A(b) | 5,175 | ||||||
77 | Red Robin Gourmet Burgers, Inc.(b) | 4,994 | ||||||
314 | Regis Corp.(b) | 4,292 | ||||||
296 | Rent-A-Center, Inc. | 4,351 | ||||||
120 | Restoration Hardware Holdings, Inc.(b) | 5,192 | ||||||
919 | Ruby Tuesday, Inc.(b) | 4,044 | ||||||
258 | Ruth’s Hospitality Group, Inc. | 4,097 | ||||||
117 | Saga Communications, Inc., Class A | 4,920 | ||||||
124 | Scholastic Corp. | 4,511 | ||||||
532 | Scientific Games Corp., Class A(b) | 5,277 | ||||||
227 | SeaWorld Entertainment, Inc. | 4,524 | ||||||
247 | Select Comfort Corp.(b) | 6,096 | ||||||
794 | Sequential Brands Group, Inc.(b) | 4,407 | ||||||
141 | Shake Shack, Inc., Class A(b) | 5,149 | ||||||
173 | Shoe Carnival, Inc. | 4,434 | ||||||
102 | Shutterfly, Inc.(b) | 4,690 | ||||||
151 | Sinclair Broadcast Group, Inc., Class A | 4,843 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 43 |
|
PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Consumer Discretionary (continued) | ||||||||
1,642 | Sizmek, Inc.(b) | $ | 4,351 | |||||
1,297 | Skullcandy, Inc.(b) | 4,423 | ||||||
172 | Smith & Wesson Holding Corp.(b) | 3,755 | ||||||
252 | Sonic Automotive, Inc., Class A | 4,728 | ||||||
142 | Sonic Corp. | 4,881 | ||||||
184 | Sotheby’s | 5,012 | ||||||
249 | Speedway Motorsports, Inc. | 4,362 | ||||||
377 | Sportsman’s Warehouse Holdings, Inc.(b) | 4,290 | ||||||
585 | Stage Stores, Inc. | 4,306 | ||||||
138 | Standard Motor Products, Inc. | 4,900 | ||||||
633 | Stein Mart, Inc. | 4,583 | ||||||
129 | Steven Madden Ltd.(b) | 4,516 | ||||||
319 | Stoneridge, Inc.(b) | 4,549 | ||||||
79 | Strattec Security Corp. | 4,179 | ||||||
97 | Strayer Education, Inc.(b) | 4,815 | ||||||
67 | Sturm Ruger & Co., Inc. | 4,290 | ||||||
209 | Superior Industries International, Inc. | 5,459 | ||||||
265 | Superior Uniform Group, Inc. | 5,040 | ||||||
274 | Tailored Brands, Inc. | 4,773 | ||||||
342 | Taylor Morrison Home Corp., Class A(b) | 4,925 | ||||||
92 | Tenneco, Inc.(b) | 4,904 | ||||||
110 | Texas Roadhouse, Inc. | 4,479 | ||||||
318 | Tile Shop Holdings, Inc. (The)(b) | 5,673 | ||||||
687 | Tilly’s, Inc., Class A(b) | 4,321 | ||||||
302 | Time, Inc. | 4,439 | ||||||
177 | Tower International, Inc. | 4,062 | ||||||
432 | Townsquare Media, Inc., Class A(b) | 4,596 | ||||||
407 | TRI Pointe Homes, Inc.(b) | 4,721 | ||||||
577 | Tribune Publishing Co. | 6,537 | ||||||
595 | Tuesday Morning Corp.(b) | 5,165 | ||||||
172 | Tumi Holdings, Inc.(b) | 4,589 | ||||||
552 | Unifi, Inc.(b) | 14,220 | ||||||
73 | Universal Electronics, Inc.(b) | 4,848 | ||||||
1,143 | Universal Technical Institute, Inc. | 4,515 | ||||||
36 | Vail Resorts, Inc. | 4,667 | ||||||
235 | Vera Bradley, Inc.(b) | 4,122 | ||||||
724 | Vince Holding Corp.(b) | 4,474 | ||||||
154 | Vitamin Shoppe, Inc.(b) | 4,215 | ||||||
1,013 | VOXX International Corp., Class A(b) | 4,548 | ||||||
113 | Wayfair, Inc., Class A(b) | 4,266 | ||||||
254 | WCI Communities, Inc.(b) | 4,059 | ||||||
339 | Weight Watchers International, Inc.(b) | 4,390 | ||||||
499 | West Marine, Inc.(b) | 5,000 | ||||||
181 | Weyco Group, Inc. | 5,075 | ||||||
343 | William Lyon Homes, Class A(b) | 4,836 | ||||||
210 | Wingstop, Inc.(b) | 5,237 | ||||||
47 | Winmark Corp. | 4,474 | ||||||
215 | Winnebago Industries, Inc. | 4,653 | ||||||
258 | Wolverine World Wide, Inc. | 4,889 | ||||||
259 | World Wrestling Entertainment, Inc., Class A | 4,310 | ||||||
532 | ZAGG, Inc.(b) | 4,261 | ||||||
119 | Zoe’s Kitchen, Inc.(b) | 4,461 | ||||||
241 | Zumiez, Inc.(b) | 4,044 | ||||||
|
| |||||||
1,412,640 | ||||||||
|
|
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Consumer Staples—10.3% | ||||||||
2,294 | Amplify Snack Brands, Inc.(b) | $ | 35,351 | |||||
1,035 | Andersons, Inc. (The) | 34,683 | ||||||
925 | B&G Foods, Inc. | 38,119 | ||||||
167 | Boston Beer Co., Inc. (The), Class A(b) | 26,065 | ||||||
557 | Calavo Growers, Inc. | 31,844 | ||||||
580 | Cal-Maine Foods, Inc. | 29,441 | ||||||
292 | Casey’s General Stores, Inc. | 32,704 | ||||||
289 | Central Garden & Pet Co., Class A(b) | 4,708 | ||||||
1,633 | Chefs’ Warehouse, Inc. (The)(b) | 31,468 | ||||||
202 | Coca-Cola Bottling Co. Consolidated | 32,193 | ||||||
467 | Darling Ingredients, Inc.(b) | 6,767 | ||||||
1,835 | Dean Foods Co. | 31,617 | ||||||
570 | Elizabeth Arden, Inc.(b) | 5,831 | ||||||
1,165 | Farmer Brothers Co.(b) | 35,195 | ||||||
742 | Fresh Del Monte Produce, Inc. | 32,099 | ||||||
220 | HRG Group, Inc.(b) | 3,168 | ||||||
901 | Ingles Markets, Inc., Class A | 32,499 | ||||||
153 | Inter Parfums, Inc. | 4,685 | ||||||
299 | J & J Snack Foods Corp. | 30,238 | ||||||
446 | John B. Sanfilippo & Son, Inc. | 24,677 | ||||||
283 | Lancaster Colony Corp. | 32,969 | ||||||
1,190 | Landec Corp.(b) | 13,387 | ||||||
1,078 | Medifast, Inc. | 33,989 | ||||||
1,348 | MGP Ingredients, Inc. | 35,614 | ||||||
743 | National Beverage Corp.(b) | 34,728 | ||||||
1,010 | Natural Health Trends Corp. | 36,552 | ||||||
1,281 | Nutraceutical International Corp.(b) | 30,219 | ||||||
379 | Oil-Dri Corp. of America | 12,643 | ||||||
1,852 | Omega Protein Corp.(b) | 34,429 | ||||||
1,135 | Orchids Paper Products Co. | 34,810 | ||||||
1,362 | Performance Food Group Co.(b) | 35,249 | ||||||
461 | Post Holdings, Inc., Class A(b) | 33,118 | ||||||
55 | PriceSmart, Inc. | 4,760 | ||||||
134 | Revlon, Inc., Class A(b) | 4,882 | ||||||
354 | Sanderson Farms, Inc. | 32,476 | ||||||
11 | Seaboard Corp.(b) | 33,033 | ||||||
972 | Seneca Foods Corp., Class A(b) | 31,677 | ||||||
1,977 | Smart & Final Stores, Inc.(b) | 31,474 | ||||||
1,029 | Snyder’s-Lance, Inc. | 32,897 | ||||||
1,088 | SpartanNash Co. | 30,138 | ||||||
5,580 | SUPERVALU, Inc.(b) | 28,067 | ||||||
934 | Tootsie Roll Industries, Inc. | 33,288 | ||||||
374 | TreeHouse Foods, Inc.(b) | 33,062 | ||||||
787 | United Natural Foods, Inc.(b) | 28,072 | ||||||
565 | Universal Corp. | 30,821 | ||||||
273 | USANA Health Sciences, Inc.(b) | 32,334 | ||||||
1,384 | Vector Group Ltd. | 29,894 | ||||||
295 | WD-40 Co. | 30,178 | ||||||
732 | Weis Markets, Inc. | 33,321 | ||||||
|
| |||||||
1,351,433 | ||||||||
|
| |||||||
Energy—11.6% | ||||||||
2,372 | Alon USA Energy, Inc. | 24,906 | ||||||
3,448 | Archrock, Inc. | 33,963 | ||||||
712 | Ardmore Shipping Corp. (Ireland) | 6,657 | ||||||
2,807 | Atwood Oceanics, Inc. | 27,116 | ||||||
4,266 | Bill Barrett Corp.(b) | 33,957 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 44 |
|
PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Energy (continued) | ||||||||
328 | Bristow Group, Inc. | $ | 7,518 | |||||
2,892 | Callon Petroleum Co.(b) | 30,395 | ||||||
1,635 | CARBO Ceramics, Inc. | 24,280 | ||||||
801 | Carrizo Oil & Gas, Inc.(b) | 28,331 | ||||||
8,096 | Clean Energy Fuels Corp.(b) | 23,154 | ||||||
2,110 | Contango Oil & Gas Co.(b) | 26,544 | ||||||
1,601 | Delek US Holdings, Inc. | 25,440 | ||||||
1,034 | DHT Holdings, Inc. | 5,935 | ||||||
614 | Dorian LPG Ltd.(b) | 6,238 | ||||||
2,671 | Era Group, Inc.(b) | 25,455 | ||||||
23,841 | EXCO Resources, Inc.(b) | 36,238 | ||||||
1,509 | Exterran Corp.(b) | 23,088 | ||||||
9,509 | Fairmount Santrol Holdings, Inc.(b) | 38,036 | ||||||
1,880 | Forum Energy Technologies, Inc.(b) | 31,471 | ||||||
757 | Frontline Ltd. (Norway) | 6,238 | ||||||
615 | GasLog Ltd. (Monaco) | 7,878 | ||||||
882 | Gener8 Maritime, Inc.(b) | 6,377 | ||||||
2,025 | Geospace Technologies Corp.(b) | 33,129 | ||||||
1,672 | Green Plains, Inc. | 30,263 | ||||||
986 | Gulfmark Offshore, Inc., Class A(b) | 6,685 | ||||||
4,319 | Helix Energy Solutions Group, Inc.(b) | 37,273 | ||||||
2,636 | Hornbeck Offshore Services, Inc.(b) | 30,947 | ||||||
1,308 | Matador Resources Co.(b) | 28,187 | ||||||
1,412 | Matrix Service Co.(b) | 26,602 | ||||||
6,209 | McDermott International, Inc.(b) | 28,189 | ||||||
1,156 | Natural Gas Services Group, Inc.(b) | 26,576 | ||||||
3,728 | Navios Maritime Acquisition Corp. | 7,195 | ||||||
5,837 | Newpark Resources, Inc.(b) | 27,259 | ||||||
412 | Nordic American Tankers Ltd. | 6,349 | ||||||
6,036 | Northern Oil and Gas, Inc.(b) | 32,956 | ||||||
3,498 | Oasis Petroleum, Inc.(b) | 33,896 | ||||||
797 | Oil States International, Inc.(b) | 27,608 | ||||||
5,168 | Pacific Ethanol, Inc.(b) | 24,445 | ||||||
1,424 | Panhandle Oil and Gas, Inc., Class A | 26,899 | ||||||
1,283 | Par Pacific Holdings, Inc.(b) | 24,518 | ||||||
11,626 | Parker Drilling Co.(b) | 35,576 | ||||||
1,104 | Parsley Energy, Inc., Class A(b) | 25,856 | ||||||
419 | PDC Energy, Inc.(b) | 26,309 | ||||||
318 | PHI, Inc.(b) | 7,130 | ||||||
11,458 | Pioneer Energy Services Corp.(b) | 35,634 | ||||||
2,669 | Renewable Energy Group, Inc.(b) | 25,943 | ||||||
444 | REX American Resources Corp.(b) | 24,140 | ||||||
1,965 | RigNet, Inc.(b) | 33,601 | ||||||
4,825 | Ring Energy, Inc.(b) | 34,740 | ||||||
856 | RSP Permian, Inc.(b) | 26,202 | ||||||
4,721 | Sanchez Energy Corp.(b) | 42,442 | ||||||
1,026 | Scorpio Tankers, Inc. (Monaco) | 6,423 | ||||||
466 | SEACOR Holdings, Inc.(b) | 27,387 | ||||||
1,124 | SemGroup Corp., Class A | 34,462 | ||||||
433 | Ship Finance International Ltd. (Norway) | 6,569 | ||||||
3,188 | Synergy Resources Corp.(b) | 23,017 | ||||||
1,632 | Teekay Tankers Ltd., Class A (Bermuda) | 6,430 | ||||||
2,878 | Tesco Corp. | 27,226 | ||||||
4,026 | TETRA Technologies, Inc.(b) | 28,987 | ||||||
922 | Tidewater, Inc. | 8,077 | ||||||
2,757 | Unit Corp.(b) | 34,904 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Energy (continued) | ||||||||
586 | US Silica Holdings, Inc. | $ | 14,972 | |||||
803 | Western Refining, Inc. | 21,488 | ||||||
3,299 | Westmoreland Coal Co.(b) | 23,522 | ||||||
|
| |||||||
1,519,228 | ||||||||
|
| |||||||
Financials—10.7% | ||||||||
94 | 1st Source Corp. | 3,237 | ||||||
87 | Acadia Realty Trust REIT | 2,932 | ||||||
163 | Access National Corp. | 3,205 | ||||||
233 | AG Mortgage Investment Trust, Inc. REIT | 3,120 | ||||||
77 | Agree Realty Corp. REIT | 2,986 | ||||||
85 | Alexander & Baldwin, Inc. | 3,250 | ||||||
10 | Alexander’s, Inc. REIT | 3,827 | ||||||
166 | Allegiance Bancshares, Inc.(b) | 3,494 | ||||||
133 | Altisource Portfolio Solutions SA(b) | 4,162 | ||||||
267 | Altisource Residential Corp. REIT | 3,103 | ||||||
189 | Ambac Financial Group, Inc.(b) | 3,067 | ||||||
77 | American Assets Trust, Inc. REIT | 3,055 | ||||||
204 | American Capital Mortgage Investment Corp. REIT | 3,025 | ||||||
185 | American Equity Investment Life Holding Co. | 2,590 | ||||||
120 | American National Bankshares, Inc. | 3,208 | ||||||
103 | Ameris Bancorp | 3,234 | ||||||
58 | AMERISAFE, Inc. | 3,125 | ||||||
121 | Ames National Corp. | 3,121 | ||||||
628 | Anworth Mortgage Asset Corp. REIT | 2,964 | ||||||
180 | Apollo Commercial Real Estate Finance, Inc. REIT | 2,867 | ||||||
217 | Apollo Residential Mortgage, Inc. REIT | 2,943 | ||||||
271 | Ares Commercial Real Estate Corp. REIT | 3,252 | ||||||
53 | Argo Group International Holdings Ltd. | 2,913 | ||||||
220 | Arlington Asset Investment Corp., Class A | 2,847 | ||||||
268 | Armada Hoffler Properties, Inc. REIT | 3,136 | ||||||
140 | ARMOUR Residential REIT, Inc. REIT | 2,979 | ||||||
112 | Arrow Financial Corp. | 3,154 | ||||||
287 | Ashford Hospitality Prime, Inc. REIT | 3,212 | ||||||
514 | Ashford Hospitality Trust, Inc. REIT | 2,873 | ||||||
68 | Ashford, Inc.(b) | 3,094 | ||||||
106 | Associated Capital Group, Inc., Class A(b) | 3,230 | ||||||
192 | Astoria Financial Corp. | 2,888 | ||||||
171 | Atlas Financial Holdings, Inc.(b) | 3,004 | ||||||
276 | AV Homes, Inc.(b) | 3,174 | ||||||
123 | Baldwin & Lyons, Inc., Class B | 3,006 | ||||||
176 | Banc of California, Inc. | 3,582 | ||||||
52 | BancFirst Corp. | 3,243 | ||||||
126 | Banco Latinoamericano de Comercio Exterior SA, Class E (Panama) | 3,258 | ||||||
553 | Bancorp, Inc. (The)(b) | 3,135 | ||||||
142 | BancorpSouth, Inc. | 3,336 | ||||||
397 | Bank Mutual Corp. | 3,208 | ||||||
59 | Bank of Marin Bancorp | 2,892 | ||||||
71 | Bank of the Ozarks, Inc. | 2,932 | ||||||
250 | BankFinancial Corp. | 3,090 | ||||||
72 | Banner Corp. | 3,080 | ||||||
92 | Bar Harbor Bankshares | 3,192 | ||||||
202 | BBCN Bancorp, Inc. | 3,155 | ||||||
196 | BBX Capital Corp., Class A(b) | 3,022 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 45 |
|
PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
338 | Bear State Financial, Inc. | $ | 3,326 | |||||
219 | Beneficial Bancorp, Inc.(b) | 3,042 | ||||||
112 | Berkshire Hills Bancorp, Inc. | 3,040 | ||||||
334 | BGC Partners, Inc., Class A | 3,033 | ||||||
218 | Blue Hills Bancorp, Inc. | 3,178 | ||||||
282 | Bluerock Residential Growth REIT, Inc., Class A REIT | 3,085 | ||||||
143 | BNC Bancorp | 3,197 | ||||||
141 | BofI Holding, Inc.(b) | 2,872 | ||||||
262 | Boston Private Financial Holdings, Inc. | 3,202 | ||||||
100 | Bridge Bancorp, Inc. | 3,044 | ||||||
272 | Brookline Bancorp, Inc. | 3,095 | ||||||
118 | Bryn Mawr Bank Corp. | 3,354 | ||||||
134 | BSB Bancorp, Inc.(b) | 3,185 | ||||||
124 | C1 Financial, Inc.(b) | 3,042 | ||||||
349 | Calamos Asset Management, Inc., Class A | 2,876 | ||||||
72 | Camden National Corp. | 3,133 | ||||||
96 | Capital Bank Financial Corp., Class A | 2,902 | ||||||
209 | Capital City Bank Group, Inc. | 3,097 | ||||||
224 | Capitol Federal Financial, Inc. | 2,977 | ||||||
301 | Capstead Mortgage Corp. REIT | 2,926 | ||||||
148 | Cardinal Financial Corp. | 3,275 | ||||||
239 | CareTrust REIT, Inc. REIT | 3,040 | ||||||
525 | Cascade Bancorp(b) | 3,176 | ||||||
76 | Cash America International, Inc. | 2,809 | ||||||
278 | CatchMark Timber Trust, Inc., Class A REIT | 2,950 | ||||||
107 | Cathay General Bancorp | 3,266 | ||||||
425 | Cedar Realty Trust, Inc. REIT | 2,941 | ||||||
201 | Centerstate Banks, Inc. | 3,274 | ||||||
139 | Central Pacific Financial Corp. | 3,244 | ||||||
77 | Century Bancorp, Inc., Class A | 3,272 | ||||||
221 | Charter Financial Corp. | 2,769 | ||||||
142 | Chatham Lodging Trust REIT | 3,026 | ||||||
84 | Chemical Financial Corp. | 3,231 | ||||||
117 | Chesapeake Lodging Trust REIT | 2,882 | ||||||
150 | Citizens & Northern Corp. | 3,028 | ||||||
443 | Citizens, Inc., Class A(b) | 3,610 | ||||||
64 | City Holding Co. | 3,144 | ||||||
196 | Clifton Bancorp, Inc. | 2,916 | ||||||
168 | CNB Financial Corp. | 3,006 | ||||||
163 | CNO Financial Group, Inc. | 2,994 | ||||||
258 | CoBiz Financial, Inc. | 3,124 | ||||||
79 | Cohen & Steers, Inc. | 3,102 | ||||||
179 | Colony Capital, Inc., Class A REIT | 3,165 | ||||||
121 | Colony Starwood Homes REIT | 2,949 | ||||||
101 | Columbia Banking System, Inc. | 2,978 | ||||||
78 | Community Bank System, Inc. | 3,086 | ||||||
84 | Community Trust Bancorp, Inc. | 3,013 | ||||||
222 | CommunityOne Bancorp(b) | 2,930 | ||||||
189 | ConnectOne Bancorp, Inc. | 3,253 | ||||||
64 | Consolidated-Tomoka Land Co. | 3,155 | ||||||
173 | CorEnergy Infrastructure Trust, Inc. REIT | 3,683 | ||||||
43 | CoreSite Realty Corp. REIT | 3,222 | ||||||
300 | Cousins Properties, Inc. REIT | 3,105 | ||||||
842 | Cowen Group, Inc., Class A(b) | 2,934 | ||||||
516 | Crawford & Co., Class B | 3,478 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
141 | CU Bancorp(b) | $ | 3,249 | |||||
91 | CubeSmart REIT | 2,695 | ||||||
124 | Customers Bancorp, Inc.(b) | 3,222 | ||||||
172 | CVB Financial Corp. | 2,955 | ||||||
68 | CyrusOne, Inc. REIT | 3,001 | ||||||
375 | CYS Investments, Inc. REIT | 3,041 | ||||||
76 | DCT Industrial Trust, Inc. REIT | 3,068 | ||||||
17 | Diamond Hill Investment Group, Inc. | 2,979 | ||||||
304 | DiamondRock Hospitality Co. REIT | 2,709 | ||||||
171 | Dime Community Bancshares, Inc. | 3,097 | ||||||
211 | Donegal Group, Inc., Class A | 3,230 | ||||||
74 | DuPont Fabros Technology, Inc. REIT | 2,947 | ||||||
440 | Dynex Capital, Inc. REIT | 2,860 | ||||||
63 | Eagle Bancorp, Inc.(b) | 3,194 | ||||||
165 | Easterly Government Properties, Inc. REIT | 3,044 | ||||||
51 | EastGroup Properties, Inc. REIT | 3,047 | ||||||
73 | Education Realty Trust, Inc. REIT | 2,903 | ||||||
326 | eHealth, Inc.(b) | 3,648 | ||||||
116 | EMC Insurance Group, Inc. | 3,069 | ||||||
107 | Employers Holdings, Inc. | 3,178 | ||||||
121 | Encore Capital Group, Inc.(b) | 3,406 | ||||||
491 | Enova International, Inc.(b) | 4,326 | ||||||
19 | Enstar Group Ltd. (Bermuda)(b) | 3,010 | ||||||
122 | Enterprise Bancorp, Inc. | 2,944 | ||||||
110 | Enterprise Financial Services Corp. | 3,011 | ||||||
46 | EPR Properties REIT | 3,030 | ||||||
139 | Equity Bancshares, Inc., Class A(b) | 2,915 | ||||||
104 | Equity One, Inc. REIT | 2,943 | ||||||
151 | Essent Group Ltd.(b) | 3,083 | ||||||
199 | EverBank Financial Corp. | 3,001 | ||||||
58 | Evercore Partners, Inc., Class A | 2,995 | ||||||
975 | EZCORP, Inc., Class A(b) | 4,826 | ||||||
229 | F.N.B. Corp. | 3,027 | ||||||
115 | Farmers Capital Bank Corp.(b) | 3,233 | ||||||
50 | FBL Financial Group, Inc., Class A | 3,023 | ||||||
91 | FCB Financial Holdings, Inc., Class A(b) | 3,180 | ||||||
77 | Federal Agricultural Mortgage Corp., Class C | 3,132 | ||||||
154 | Federated National Holding Co. | 2,934 | ||||||
386 | FelCor Lodging Trust, Inc. REIT | 2,764 | ||||||
113 | Fidelity & Guaranty Life | 2,988 | ||||||
189 | Fidelity Southern Corp. | 3,054 | ||||||
99 | Financial Engines, Inc. | 3,189 | ||||||
104 | Financial Institutions, Inc. | 2,912 | ||||||
81 | First American Financial Corp. | 2,918 | ||||||
1,070 | First BanCorp(b) | 4,173 | ||||||
157 | First Bancorp, Inc. | 3,116 | ||||||
157 | First Bancorp/Southern Pines NC | 3,203 | ||||||
147 | First Busey Corp. | 3,005 | ||||||
136 | First Business Financial Services, Inc. | 3,442 | ||||||
65 | First Cash Financial Services, Inc.(b) | 2,972 | ||||||
12 | First Citizens BancShares, Inc., Class A | 3,060 | ||||||
337 | First Commonwealth Financial Corp. | 3,094 | ||||||
155 | First Community Bancshares, Inc. | 3,226 | ||||||
185 | First Connecticut Bancorp, Inc. | 3,188 | ||||||
78 | First Defiance Financial Corp. | 3,087 | ||||||
163 | First Financial Bancorp | 3,178 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 46 |
|
PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
102 | First Financial Bankshares, Inc. | $ | 3,303 | |||||
87 | First Financial Corp. | 3,082 | ||||||
130 | First Industrial Realty Trust, Inc. REIT | 2,982 | ||||||
105 | First Interstate BancSystem, Inc., Class A | 2,845 | ||||||
129 | First Merchants Corp. | 3,309 | ||||||
166 | First Midwest Bancorp, Inc. | 3,068 | ||||||
140 | First NBC Bank Holding Co.(b) | 3,044 | ||||||
106 | First of Long Island Corp. (The) | 3,245 | ||||||
340 | First Potomac Realty Trust REIT | 2,859 | ||||||
140 | FirstMerit Corp. | 3,102 | ||||||
141 | Flagstar Bancorp, Inc.(b) | 3,337 | ||||||
138 | Flushing Financial Corp. | 2,753 | ||||||
283 | FNFV Group(b) | 3,048 | ||||||
236 | Forestar Group, Inc.(b) | 3,186 | ||||||
155 | Fox Chase Bancorp, Inc. | 3,055 | ||||||
106 | Franklin Financial Network, Inc.(b) | 3,216 | ||||||
290 | Franklin Street Properties Corp. REIT | 3,080 | ||||||
85 | FRP Holdings, Inc.(b) | 3,101 | ||||||
223 | Fulton Financial Corp. | 3,120 | ||||||
475 | Gain Capital Holdings, Inc. | 3,254 | ||||||
80 | GAMCO Investors, Inc., Class A | 3,166 | ||||||
89 | Geo Group, Inc. (The) REIT | 2,851 | ||||||
91 | German American Bancorp, Inc. | 2,933 | ||||||
154 | Getty Realty Corp. REIT | 3,031 | ||||||
119 | Glacier Bancorp, Inc. | 3,081 | ||||||
182 | Gladstone Commercial Corp. REIT | 3,063 | ||||||
98 | Global Indemnity PLC, Class A(b) | 3,082 | ||||||
175 | Government Properties Income Trust REIT | 3,311 | ||||||
357 | Gramercy Property Trust REIT | 3,024 | ||||||
267 | Great Ajax Corp. REIT | 3,637 | ||||||
82 | Great Southern Bancorp, Inc. | 3,105 | ||||||
108 | Great Western Bancorp, Inc. | 3,404 | ||||||
397 | Green Bancorp, Inc.(b) | 3,240 | ||||||
130 | Green Dot Corp., Class A(b) | 2,890 | ||||||
137 | Greenhill & Co., Inc. | 3,017 | ||||||
139 | Greenlight Capital Re Ltd., Class A(b) | 2,993 | ||||||
195 | Guaranty Bancorp | 3,202 | ||||||
263 | Hallmark Financial Services, Inc.(b) | 2,969 | ||||||
1,704 | Hampton Roads Bankshares, Inc.(b) | 2,999 | ||||||
125 | Hancock Holding Co. | 3,246 | ||||||
136 | Hanmi Financial Corp. | 3,144 | ||||||
164 | Hannon Armstrong Sustainable Infrastructure Capital, Inc. REIT | 3,182 | ||||||
206 | Hatteras Financial Corp. REIT | 3,273 | ||||||
90 | HCI Group, Inc. | 2,696 | ||||||
99 | Healthcare Realty Trust, Inc. REIT | 2,998 | ||||||
97 | Heartland Financial USA, Inc. | 3,250 | ||||||
305 | Heritage Commerce Corp. | 3,184 | ||||||
171 | Heritage Financial Corp. | 3,155 | ||||||
188 | Heritage Insurance Holdings, Inc. | 2,499 | ||||||
386 | Heritage Oaks Bancorp | 3,223 | ||||||
143 | Hersha Hospitality Trust REIT | 2,758 | ||||||
110 | HFF, Inc., Class A | 3,501 | ||||||
64 | Highwoods Properties, Inc. REIT | 2,991 | ||||||
161 | Hilltop Holdings, Inc.(b) | 3,197 | ||||||
25 | Hingham Institution for Savings | 3,200 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
73 | Home BancShares, Inc. | $ | 3,138 | |||||
144 | HomeStreet, Inc.(b) | 3,103 | ||||||
163 | HomeTrust Bancshares, Inc.(b) | 3,024 | ||||||
94 | Horace Mann Educators Corp. | 2,923 | ||||||
120 | Horizon Bancorp | 2,928 | ||||||
125 | Houlihan Lokey, Inc., Class A | 3,151 | ||||||
104 | Hudson Pacific Properties, Inc. REIT | 3,042 | ||||||
58 | IBERIABANK Corp. | 3,421 | ||||||
211 | Impac Mortgage Holdings, Inc.(b) | 2,996 | ||||||
189 | Independence Holding Co. | 2,905 | ||||||
446 | Independence Realty Trust, Inc. REIT | 3,198 | ||||||
64 | Independent Bank Corp./MA | 3,010 | ||||||
207 | Independent Bank Corp./MI | 3,136 | ||||||
105 | Independent Bank Group, Inc. | 3,843 | ||||||
37 | Infinity Property & Casualty Corp. | 2,966 | ||||||
179 | InfraREIT, Inc. REIT(b) | 2,968 | ||||||
121 | International Bancshares Corp. | 3,169 | ||||||
111 | INTL FCStone, Inc.(b) | 3,030 | ||||||
252 | Invesco Mortgage Capital, Inc. REIT(c) | 3,238 | ||||||
144 | Investment Technology Group, Inc. | 2,811 | ||||||
262 | Investors Bancorp, Inc. | 3,026 | ||||||
424 | Investors Real Estate Trust REIT | 2,552 | ||||||
325 | iStar, Inc. REIT(b) | 3,185 | ||||||
92 | James River Group Holdings Ltd. | 2,848 | ||||||
214 | Janus Capital Group, Inc. | 3,124 | ||||||
253 | KCG Holdings, Inc., Class A(b) | 3,466 | ||||||
243 | Kearny Financial Corp. | 3,067 | ||||||
101 | Kemper Corp. | 3,127 | ||||||
140 | Kennedy-Wilson Holdings, Inc. | 3,025 | ||||||
110 | Kite Realty Group Trust REIT | 2,995 | ||||||
256 | Ladder Capital Corp., Class A REIT | 3,049 | ||||||
1,273 | Ladenburg Thalmann Financial Services, Inc.(b) | 3,412 | ||||||
290 | Lakeland Bancorp, Inc. | 3,216 | ||||||
65 | Lakeland Financial Corp. | 3,074 | ||||||
118 | LaSalle Hotel Properties REIT | 2,820 | ||||||
155 | LegacyTexas Financial Group, Inc. | 3,822 | ||||||
31 | LendingTree, Inc.(b) | 2,774 | ||||||
346 | Lexington Realty Trust REIT | 3,038 | ||||||
209 | Live Oak Bancshares, Inc. | 3,290 | ||||||
67 | LTC Properties, Inc. REIT | 3,108 | ||||||
132 | Mack-Cali Realty Corp. REIT | 3,374 | ||||||
233 | Maiden Holdings Ltd. | 2,850 | ||||||
143 | MainSource Financial Group, Inc. | 3,125 | ||||||
124 | Marcus & Millichap, Inc.(b) | 3,110 | ||||||
32 | MarketAxess Holdings, Inc. | 3,928 | ||||||
411 | Marlin Business Services Corp. | 6,079 | ||||||
92 | MB Financial, Inc. | 3,198 | ||||||
344 | MBIA, Inc.(b) | 2,683 | ||||||
232 | Medical Properties Trust, Inc. REIT | 3,088 | ||||||
555 | Medley Management, Inc., Class A | 3,630 | ||||||
131 | Mercantile Bank Corp. | 3,160 | ||||||
100 | Merchants Bancshares, Inc. | 3,044 | ||||||
213 | Meridian Bancorp, Inc. | 3,114 | ||||||
66 | Meta Financial Group, Inc. | 3,275 | ||||||
406 | MGIC Investment Corp.(b) | 2,935 | ||||||
107 | MidWestOne Financial Group, Inc. | 3,035 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 47 |
|
PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
108 | Moelis & Co., Class A | $ | 3,036 | |||||
256 | Monmouth Real Estate Investment Corp. REIT | 2,944 | ||||||
311 | Monogram Residential Trust, Inc. REIT | 3,150 | ||||||
147 | National Bank Holdings Corp., Class A | 2,939 | ||||||
87 | National Bankshares, Inc. | 3,131 | ||||||
128 | National Commerce Corp.(b) | 3,063 | ||||||
140 | National General Holdings Corp. | 2,827 | ||||||
45 | National Health Investors, Inc. REIT | 3,064 | ||||||
99 | National Interstate Corp. | 3,048 | ||||||
149 | National Storage Affiliates Trust REIT | 2,908 | ||||||
16 | National Western Life Group, Inc., Class A | 3,467 | ||||||
304 | Nationstar Mortgage Holdings, Inc.(b) | 3,523 | ||||||
36 | Navigators Group, Inc. (The)(b) | 2,974 | ||||||
111 | NBT Bancorp, Inc. | 3,146 | ||||||
76 | Nelnet, Inc., Class A | 3,185 | ||||||
253 | New Residential Investment Corp. REIT | 3,061 | ||||||
299 | New Senior Investment Group, Inc. REIT | 3,229 | ||||||
649 | New York Mortgage Trust, Inc. REIT | 3,375 | ||||||
302 | New York REIT, Inc. REIT | 2,969 | ||||||
339 | NewStar Financial, Inc.(b) | 3,261 | ||||||
233 | NexPoint Residential Trust, Inc. REIT | 3,276 | ||||||
592 | NMI Holdings, Inc., Class A(b) | 3,724 | ||||||
182 | Northfield Bancorp, Inc. | 2,887 | ||||||
221 | Northwest Bancshares, Inc. | 3,098 | ||||||
169 | OceanFirst Financial Corp. | 3,292 | ||||||
1,200 | Ocwen Financial Corp.(b) | 2,712 | ||||||
424 | OFG Bancorp | 3,744 | ||||||
439 | Old National Bancorp | 5,883 | ||||||
417 | Old Second Bancorp, Inc. | 2,986 | ||||||
233 | OM Asset Management PLC | 3,127 | ||||||
419 | On Deck Capital, Inc.(b) | 3,616 | ||||||
138 | One Liberty Properties, Inc. REIT | 3,232 | ||||||
234 | OneBeacon Insurance Group Ltd., Class A | 2,902 | ||||||
207 | Oppenheimer Holdings, Inc., Class A | 3,163 | ||||||
88 | Opus Bank | 3,179 | ||||||
291 | Orchid Island Capital, Inc. REIT | 2,817 | ||||||
176 | Oritani Financial Corp. | 3,050 | ||||||
187 | Pacific Continental Corp. | 3,115 | ||||||
142 | Pacific Premier Bancorp, Inc.(b) | 3,303 | ||||||
33 | Park National Corp. | 3,029 | ||||||
449 | Park Sterling Corp. | 3,278 | ||||||
200 | Parkway Properties, Inc. REIT | 3,290 | ||||||
760 | Patriot National, Inc.(b) | 6,323 | ||||||
177 | Peapack-Gladstone Financial Corp. | 3,388 | ||||||
106 | Pebblebrook Hotel Trust REIT | 2,930 | ||||||
78 | Penns Woods Bancorp, Inc. | 3,246 | ||||||
144 | Pennsylvania Real Estate Investment Trust REIT | 3,303 | ||||||
267 | PennyMac Financial Services, Inc., Class A(b) | 3,402 | ||||||
224 | PennyMac Mortgage Investment Trust REIT | 3,044 | ||||||
157 | Peoples Bancorp, Inc. | 3,374 | ||||||
79 | Peoples Financial Services Corp. | 3,114 | ||||||
183 | People’s Utah Bancorp | 3,009 | ||||||
488 | PHH Corp.(b) | 6,261 | ||||||
162 | Physicians Realty Trust REIT | 2,937 | ||||||
295 | PICO Holdings, Inc.(b) | 2,929 | ||||||
63 | Pinnacle Financial Partners, Inc. | 3,098 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
64 | Piper Jaffray Cos.(b) | $ | 2,669 | |||||
99 | Potlatch Corp. REIT | 3,487 | ||||||
104 | PRA Group, Inc.(b) | 3,451 | ||||||
243 | Preferred Apartment Communities, Inc., Class A REIT | 2,999 | ||||||
102 | Preferred Bank | 3,240 | ||||||
67 | Primerica, Inc. | 3,321 | ||||||
77 | PrivateBancorp, Inc. | 3,204 | ||||||
65 | Prosperity Bancshares, Inc. | 3,430 | ||||||
149 | Provident Financial Services, Inc. | 2,977 | ||||||
30 | PS Business Parks, Inc. REIT | 2,873 | ||||||
404 | Pzena Investment Management, Inc., Class A | 3,660 | ||||||
128 | QCR Holdings, Inc. | 3,299 | ||||||
64 | QTS Realty Trust, Inc., Class A REIT | 3,099 | ||||||
252 | Radian Group, Inc. | 3,223 | ||||||
1,033 | RAIT Financial Trust REIT | 3,140 | ||||||
172 | Ramco-Gershenson Properties Trust REIT | 3,046 | ||||||
87 | RE/MAX Holdings, Inc., Class A | 3,202 | ||||||
241 | Redwood Trust, Inc. REIT | 3,123 | ||||||
177 | Regional Management Corp.(b) | 2,924 | ||||||
93 | Renasant Corp. | 3,194 | ||||||
117 | Republic Bancorp, Inc., Class A | 3,195 | ||||||
529 | Resource America, Inc., Class A | 3,343 | ||||||
262 | Resource Capital Corp. REIT | 3,113 | ||||||
153 | Retail Opportunity Investments Corp. REIT | 3,010 | ||||||
167 | Rexford Industrial Realty, Inc. REIT | 3,135 | ||||||
44 | RLI Corp. | 2,736 | ||||||
134 | RLJ Lodging Trust REIT | 2,823 | ||||||
120 | RMR Group, Inc. (The), Class A | 2,990 | ||||||
162 | Rouse Properties, Inc. REIT | 2,992 | ||||||
59 | Ryman Hospitality Properties, Inc. REIT | 3,040 | ||||||
117 | S&T Bancorp, Inc. | 3,003 | ||||||
153 | Sabra Health Care REIT, Inc. REIT | 3,227 | ||||||
231 | Safeguard Scientifics, Inc.(b) | 3,188 | ||||||
53 | Safety Insurance Group, Inc. | 3,000 | ||||||
108 | Sandy Spring Bancorp, Inc. | 3,088 | ||||||
57 | Saul Centers, Inc. REIT | 3,031 | ||||||
189 | Seacoast Banking Corp. of Florida(b) | 3,066 | ||||||
133 | Select Income REIT | 3,079 | ||||||
83 | Selective Insurance Group, Inc. | 2,881 | ||||||
70 | ServisFirst Bancshares, Inc. | 3,450 | ||||||
167 | Sierra Bancorp | 2,941 | ||||||
206 | Silver Bay Realty Trust Corp. REIT | 3,008 | ||||||
66 | Simmons First National Corp., Class A | 3,082 | ||||||
47 | South State Corp. | 3,289 | ||||||
115 | Southside Bancshares, Inc. | 3,359 | ||||||
191 | Southwest Bancorp, Inc. | 3,066 | ||||||
26 | Sovran Self Storage, Inc. REIT | 2,762 | ||||||
187 | St. Joe Co. (The)(b) | 3,151 | ||||||
152 | STAG Industrial, Inc., Class A REIT | 3,034 | ||||||
134 | State Auto Financial Corp. | 2,748 | ||||||
151 | State Bank Financial Corp. | 3,153 | ||||||
238 | State National Cos., Inc. | 2,685 | ||||||
190 | Sterling Bancorp | 3,105 | ||||||
86 | Stewart Information Services Corp. | 2,995 | ||||||
103 | Stifel Financial Corp.(b) | 3,390 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 48 |
|
PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
78 | Stock Yards Bancorp, Inc. | $ | 3,154 | |||||
99 | Stonegate Bank | 3,118 | ||||||
559 | Stonegate Mortgage Corp.(b) | 3,225 | ||||||
116 | STORE Capital Corp. REIT | 2,978 | ||||||
118 | Suffolk Bancorp | 2,831 | ||||||
260 | Summit Hotel Properties, Inc. REIT | 2,964 | ||||||
143 | Sun Bancorp, Inc.(b) | 3,073 | ||||||
43 | Sun Communities, Inc. REIT | 2,918 | ||||||
224 | Sunstone Hotel Investors, Inc. REIT | 2,869 | ||||||
166 | Talmer Bancorp, Inc., Class A | 3,220 | ||||||
150 | Tejon Ranch Co.(b) | 3,378 | ||||||
131 | Terreno Realty Corp. REIT | 2,983 | ||||||
116 | Territorial Bancorp, Inc. | 3,043 | ||||||
78 | Texas Capital Bancshares, Inc.(b) | 3,574 | ||||||
263 | Third Point Reinsurance Ltd. (Bermuda)(b) | 2,993 | ||||||
518 | Tiptree Financial, Inc., Class A | 2,865 | ||||||
47 | Tompkins Financial Corp. | 3,071 | ||||||
158 | TowneBank | 3,318 | ||||||
117 | TriCo Bancshares | 3,150 | ||||||
238 | TriState Capital Holdings, Inc.(b) | 3,180 | ||||||
191 | Triumph Bancorp, Inc.(b) | 3,035 | ||||||
319 | Trupanion, Inc.(b) | 3,978 | ||||||
493 | TrustCo Bank Corp. NY | 3,160 | ||||||
130 | Trustmark Corp. | 3,186 | ||||||
57 | UMB Financial Corp. | 3,178 | ||||||
304 | UMH Properties, Inc. REIT | 2,979 | ||||||
186 | Umpqua Holdings Corp. | 2,944 | ||||||
123 | Union Bankshares Corp. | 3,248 | ||||||
82 | United Bankshares, Inc. | 3,173 | ||||||
163 | United Community Banks, Inc. | 3,281 | ||||||
517 | United Community Financial Corp. | 3,071 | ||||||
313 | United Development Funding IV REIT | 1,002 | ||||||
237 | United Financial Bancorp, Inc. | 3,076 | ||||||
69 | United Fire Group, Inc. | 3,093 | ||||||
161 | United Insurance Holdings Corp. | 2,626 | ||||||
54 | Universal Health Realty Income Trust REIT | 2,948 | ||||||
168 | Universal Insurance Holdings, Inc. | 2,958 | ||||||
156 | Univest Corp. of Pennsylvania | 3,079 | ||||||
118 | Urban Edge Properties REIT | 3,061 | ||||||
144 | Urstadt Biddle Properties, Inc., Class A REIT | 2,961 | ||||||
315 | Valley National Bancorp | 2,980 | ||||||
135 | Virtu Financial, Inc., Class A | 2,815 | ||||||
39 | Virtus Investment Partners, Inc. | 3,051 | ||||||
125 | Walker & Dunlop, Inc.(b) | 2,756 | ||||||
426 | Walter Investment Management Corp.(b) | 3,088 | ||||||
105 | Washington REIT | 3,010 | ||||||
133 | Washington Federal, Inc. | 3,231 | ||||||
79 | Washington Trust Bancorp, Inc. | 2,894 | ||||||
218 | Waterstone Financial, Inc. | 3,056 | ||||||
83 | Webster Financial Corp. | 3,041 | ||||||
103 | WesBanco, Inc. | 3,309 | ||||||
165 | West Bancorporation, Inc. | 3,077 | ||||||
61 | Westamerica Bancorp. | 2,972 | ||||||
95 | Western Alliance Bancorp(b) | 3,475 | ||||||
296 | Western Asset Mortgage Capital Corp. REIT | 2,951 | ||||||
52 | Westwood Holdings Group, Inc. | 2,993 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
241 | Whitestone REIT | $ | 3,237 | |||||
295 | Wilshire Bancorp, Inc. | 3,177 | ||||||
68 | Wintrust Financial Corp. | 3,537 | ||||||
262 | WisdomTree Investments, Inc. | 2,853 | ||||||
80 | World Acceptance Corp.(b) | 3,471 | ||||||
91 | WSFS Financial Corp. | 3,107 | ||||||
197 | Xenia Hotels & Resorts, Inc. REIT | 3,030 | ||||||
129 | Yadkin Financial Corp. | 3,228 | ||||||
|
| |||||||
1,397,253 | ||||||||
|
| |||||||
Health Care—12.0% | ||||||||
208 | AAC Holdings, Inc.(b) | 4,283 | ||||||
91 | Abaxis, Inc. | 4,124 | ||||||
42 | ABIOMED, Inc.(b) | 4,080 | ||||||
161 | ACADIA Pharmaceuticals, Inc.(b) | 5,200 | ||||||
284 | Accelerate Diagnostics, Inc.(b) | 3,564 | ||||||
161 | Acceleron Pharma, Inc.(b) | 4,822 | ||||||
711 | Accuray, Inc.(b) | 3,811 | ||||||
578 | Aceto Corp. | 12,965 | ||||||
527 | Achillion Pharmaceuticals, Inc.(b) | 4,506 | ||||||
258 | Aclaris Therapeutics, Inc.(b) | 4,768 | ||||||
151 | Acorda Therapeutics, Inc.(b) | 3,903 | ||||||
271 | Adamas Pharmaceuticals, Inc.(b) | 4,574 | ||||||
223 | Addus HomeCare Corp.(b) | 4,125 | ||||||
75 | Adeptus Health, Inc., Class A(b) | 5,109 | ||||||
323 | Aduro Biotech, Inc.(b) | 4,183 | ||||||
460 | Advaxis, Inc.(b) | 3,560 | ||||||
1,104 | Aegerion Pharmaceuticals, Inc.(b) | 3,146 | ||||||
330 | Aerie Pharmaceuticals, Inc.(b) | 5,234 | ||||||
1,070 | Affimed BV (Germany)(b) | 4,334 | ||||||
998 | Agenus, Inc.(b) | 3,513 | ||||||
666 | Agile Therapeutics, Inc.(b) | 3,856 | ||||||
292 | Aimmune Therapeutics, Inc.(b) | 3,781 | ||||||
110 | Air Methods Corp.(b) | 4,068 | ||||||
443 | Akebia Therapeutics, Inc.(b) | 4,160 | ||||||
276 | Albany Molecular Research, Inc.(b) | 4,154 | ||||||
149 | Alder Biopharmaceuticals, Inc.(b) | 3,956 | ||||||
2,328 | Alimera Sciences, Inc.(b) | 5,168 | ||||||
553 | Alliance HealthCare Services, Inc.(b) | 3,976 | ||||||
109 | Almost Family, Inc.(b) | 4,579 | ||||||
184 | AMAG Pharmaceuticals, Inc.(b) | 4,880 | ||||||
87 | Amedisys, Inc.(b) | 4,480 | ||||||
500 | Amicus Therapeutics, Inc.(b) | 3,735 | ||||||
120 | AMN Healthcare Services, Inc.(b) | 4,261 | ||||||
331 | Amphastar Pharmaceuticals, Inc.(b) | 4,071 | ||||||
54 | AmSurg Corp.(b) | 4,373 | ||||||
66 | Anacor Pharmaceuticals, Inc.(b) | 4,141 | ||||||
51 | Analogic Corp. | 4,028 | ||||||
333 | AngioDynamics, Inc.(b) | 4,079 | ||||||
122 | ANI Pharmaceuticals, Inc.(b) | 5,547 | ||||||
86 | Anika Therapeutics, Inc.(b) | 3,927 | ||||||
5,226 | Antares Pharma, Inc.(b) | 5,749 | ||||||
1,110 | Anthera Pharmaceuticals, Inc.(b) | 4,107 | ||||||
283 | Applied Genetic Technologies Corp.(b) | 4,446 | ||||||
1,033 | Aralez Pharmaceuticals, Inc. (Canada)(b) | 4,039 | ||||||
764 | Aratana Therapeutics, Inc.(b) | 4,592 | ||||||
550 | Ardelyx, Inc.(b) | 4,405 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 49 |
|
PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Health Care (continued) | ||||||||
2,099 | Arena Pharmaceuticals, Inc.(b) | $ | 3,610 | |||||
638 | ARIAD Pharmaceuticals, Inc.(b) | 4,581 | ||||||
1,353 | Array BioPharma, Inc.(b) | 4,316 | ||||||
859 | Arrowhead Pharmaceuticals, Inc.(b) | 4,974 | ||||||
767 | Assembly Biosciences, Inc.(b) | 4,602 | ||||||
823 | Asterias Biotherapeutics, Inc.(b) | 3,531 | ||||||
226 | Atara Biotherapeutics, Inc.(b) | 4,070 | ||||||
236 | AtriCure, Inc.(b) | 3,752 | ||||||
10 | Atrion Corp. | 3,973 | ||||||
768 | Avalanche Biotechnologies, Inc.(b) | 4,332 | ||||||
132 | Avexis, Inc.(b) | 3,300 | ||||||
338 | Axovant Sciences Ltd.(b) | 4,394 | ||||||
486 | Bellicum Pharmaceuticals, Inc.(b) | 4,928 | ||||||
1,392 | BioCryst Pharmaceuticals, Inc.(b) | 4,538 | ||||||
1,367 | BioDelivery Sciences International, Inc.(b) | 4,620 | ||||||
1,940 | BioScrip, Inc.(b) | 5,122 | ||||||
114 | BioSpecifics Technologies Corp.(b) | 4,054 | ||||||
328 | BioTelemetry, Inc.(b) | 5,159 | ||||||
1,518 | BioTime, Inc.(b) | 4,433 | ||||||
237 | Blueprint Medicines Corp.(b) | 3,598 | ||||||
742 | Calithera Biosciences, Inc.(b) | 3,955 | ||||||
91 | Cambrex Corp.(b) | 4,390 | ||||||
56 | Cantel Medical Corp. | 3,751 | ||||||
214 | Capital Senior Living Corp.(b) | 4,293 | ||||||
669 | Cara Therapeutics, Inc.(b) | 4,081 | ||||||
395 | Cardiovascular Systems, Inc.(b) | 5,522 | ||||||
1,239 | Castlight Health, Inc., Class B(b) | 4,460 | ||||||
147 | Catalent, Inc.(b) | 4,341 | ||||||
3,255 | Catalyst Pharmaceuticals, Inc.(b) | 2,213 | ||||||
1,107 | Celldex Therapeutics, Inc.(b) | 4,428 | ||||||
231 | Cellular Biomedicine Group, Inc.(b) | 3,989 | ||||||
256 | Cempra, Inc.(b) | 4,334 | ||||||
124 | Cepheid, Inc.(b) | 3,539 | ||||||
663 | Cerus Corp.(b) | 4,150 | ||||||
29 | Chemed Corp. | 3,764 | ||||||
1,715 | ChemoCentryx, Inc.(b) | 4,116 | ||||||
477 | Chiasma, Inc.(b) | 1,607 | ||||||
816 | Chimerix, Inc.(b) | 4,880 | ||||||
379 | Cidara Therapeutics, Inc.(b) | 5,071 | ||||||
232 | Civitas Solutions, Inc.(b) | 4,649 | ||||||
207 | Clovis Oncology, Inc.(b) | 2,879 | ||||||
204 | Coherus Biosciences, Inc.(b) | 3,841 | ||||||
233 | Collegium Pharmaceutical, Inc.(b) | 4,441 | ||||||
75 | Computer Programs & Systems, Inc. | 3,850 | ||||||
301 | Concert Pharmaceuticals, Inc.(b) | 4,196 | ||||||
419 | ConforMIS, Inc.(b) | 5,191 | ||||||
97 | CONMED Corp. | 4,018 | ||||||
912 | Corcept Therapeutics, Inc.(b) | 4,350 | ||||||
985 | Corium International, Inc.(b) | 4,413 | ||||||
1,635 | CorMedix, Inc.(b) | 6,834 | ||||||
96 | CorVel Corp.(b) | 4,339 | ||||||
360 | Cross Country Healthcare, Inc.(b) | 4,475 | ||||||
356 | CryoLife, Inc. | 4,414 | ||||||
7,653 | CTI BioPharma Corp.(b) | 3,854 | ||||||
2,631 | Curis, Inc.(b) | 5,262 | ||||||
348 | Cutera, Inc.(b) | 4,058 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Health Care (continued) | ||||||||
92 | Cynosure, Inc., Class A(b) | $ | 4,502 | |||||
589 | Cytokinetics, Inc.(b) | 4,794 | ||||||
307 | CytomX Therapeutics, Inc.(b) | 3,966 | ||||||
1,555 | CytRx Corp.(b) | 5,069 | ||||||
294 | Depomed, Inc.(b) | 5,110 | ||||||
190 | Dermira, Inc.(b) | 4,805 | ||||||
828 | Dicerna Pharmaceuticals, Inc.(b) | 3,825 | ||||||
467 | Dimension Therapeutics, Inc.(b) | 3,320 | ||||||
1,188 | Diplomat Pharmacy, Inc.(b) | 35,985 | ||||||
2,932 | Durect Corp.(b) | 3,929 | ||||||
103 | Dyax Corp.(b) | 114 | ||||||
216 | Dynavax Technologies Corp.(b) | 3,545 | ||||||
101 | Eagle Pharmaceuticals, Inc.(b) | 3,824 | ||||||
490 | Edge Therapeutics, Inc.(b) | 4,033 | ||||||
126 | Editas Medicine, Inc.(b) | 4,164 | ||||||
114 | Emergent BioSolutions, Inc.(b) | 4,391 | ||||||
142 | Enanta Pharmaceuticals, Inc.(b) | 4,146 | ||||||
768 | EndoChoice Holdings, Inc.(b) | 4,239 | ||||||
1,227 | Endocyte, Inc.(b) | 4,785 | ||||||
483 | Endologix, Inc.(b) | 5,414 | ||||||
172 | Ensign Group, Inc. (The) | 3,880 | ||||||
237 | Entellus Medical, Inc.(b) | 3,446 | ||||||
366 | Epizyme, Inc.(b) | 3,814 | ||||||
251 | Esperion Therapeutics, Inc.(b) | 4,114 | ||||||
509 | Evolent Health, Inc., Class A(b) | 6,113 | ||||||
622 | Exact Sciences Corp.(b) | 4,366 | ||||||
209 | Exactech, Inc.(b) | 4,753 | ||||||
138 | ExamWorks Group, Inc.(b) | 4,975 | ||||||
1,022 | Exelixis, Inc.(b) | 4,711 | ||||||
1,723 | Fibrocell Science, Inc.(b) | 4,755 | ||||||
202 | FibroGen, Inc.(b) | 3,636 | ||||||
101 | Five Prime Therapeutics, Inc.(b) | 4,807 | ||||||
1,707 | Five Star Quality Care, Inc.(b) | 4,165 | ||||||
378 | Flex Pharma, Inc.(b) | 4,143 | ||||||
449 | Flexion Therapeutics, Inc.(b) | 4,670 | ||||||
520 | Fluidigm Corp.(b) | 4,982 | ||||||
646 | Foamix Pharmaceuticals Ltd. (Israel)(b) | 4,076 | ||||||
229 | Foundation Medicine, Inc.(b) | 3,653 | ||||||
3,624 | Galena Biopharma, Inc.(b) | 5,001 | ||||||
1,621 | Genesis Healthcare, Inc., Class A(b) | 4,085 | ||||||
792 | GenMark Diagnostics, Inc.(b) | 4,681 | ||||||
1,006 | Genocea Biosciences, Inc.(b) | 4,426 | ||||||
166 | Genomic Health, Inc.(b) | 4,362 | ||||||
1,372 | Geron Corp.(b) | 4,047 | ||||||
241 | Glaukos Corp.(b) | 4,540 | ||||||
296 | Global Blood Therapeutics, Inc.(b) | 5,970 | ||||||
168 | Globus Medical, Inc., Class A(b) | 4,207 | ||||||
114 | Greatbatch, Inc.(b) | 3,967 | ||||||
114 | Haemonetics Corp.(b) | 3,697 | ||||||
444 | Halozyme Therapeutics, Inc.(b) | 4,684 | ||||||
138 | Halyard Health, Inc.(b) | 3,886 | ||||||
1,444 | Harvard Bioscience, Inc.(b) | 4,289 | ||||||
170 | HealthEquity, Inc.(b) | 4,275 | ||||||
108 | HealthSouth Corp. | 4,478 | ||||||
236 | HealthStream, Inc.(b) | 5,338 | ||||||
392 | Healthways, Inc.(b) | 4,567 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 50 |
|
PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Health Care (continued) | ||||||||
130 | HeartWare International, Inc.(b) | $ | 4,337 | |||||
236 | Heron Therapeutics, Inc.(b) | 5,060 | ||||||
139 | Heska Corp.(b) | 4,253 | ||||||
293 | HMS Holdings Corp.(b) | 4,949 | ||||||
39 | ICU Medical, Inc.(b) | 3,874 | ||||||
1,960 | Idera Pharmaceuticals, Inc.(b) | 3,254 | ||||||
641 | Ignyta, Inc.(b) | 4,436 | ||||||
338 | Immune Design Corp.(b) | 4,610 | ||||||
501 | ImmunoGen, Inc.(b) | 3,432 | ||||||
1,587 | Immunomedics, Inc.(b) | 5,634 | ||||||
122 | Impax Laboratories, Inc.(b) | 4,069 | ||||||
327 | Imprivata, Inc.(b) | 3,963 | ||||||
94 | INC Research Holdings, Inc., Class A(b) | 4,524 | ||||||
776 | Infinity Pharmaceuticals, Inc.(b) | 4,501 | ||||||
330 | Innoviva, Inc. | 4,072 | ||||||
95 | Inogen, Inc.(b) | 4,642 | ||||||
479 | Inovio Pharmaceuticals, Inc.(b) | 5,020 | ||||||
333 | Insmed, Inc.(b) | 4,046 | ||||||
123 | Insulet Corp.(b) | 4,096 | ||||||
236 | Insys Therapeutics, Inc.(b) | 3,420 | ||||||
59 | Integra LifeSciences Holdings Corp.(b) | 4,178 | ||||||
238 | Intersect ENT, Inc.(b) | 4,772 | ||||||
147 | Intra-Cellular Therapies, Inc.(b) | 5,045 | ||||||
305 | Invacare Corp. | 3,428 | ||||||
428 | Invitae Corp.(b) | 4,083 | ||||||
553 | InVivo Therapeutics Holdings Corp.(b) | 3,318 | ||||||
203 | iRadimed Corp.(b) | 3,323 | ||||||
380 | Ironwood Pharmaceuticals, Inc., Class A(b) | 3,971 | ||||||
300 | K2M Group Holdings, Inc.(b) | 4,878 | ||||||
466 | Karyopharm Therapeutics, Inc.(b) | 4,334 | ||||||
844 | Keryx Biopharmaceuticals, Inc.(b) | 4,591 | ||||||
327 | Kindred Healthcare, Inc. | 4,827 | ||||||
88 | Kite Pharma, Inc.(b) | 4,073 | ||||||
204 | La Jolla Pharmaceutical Co.(b) | 3,776 | ||||||
120 | Landauer, Inc. | 4,169 | ||||||
223 | Lannett Co., Inc.(b) | 4,277 | ||||||
187 | LDR Holding Corp.(b) | 5,040 | ||||||
273 | LeMaitre Vascular, Inc. | 4,526 | ||||||
331 | Lexicon Pharmaceuticals, Inc.(b) | 4,571 | ||||||
110 | LHC Group, Inc.(b) | 4,437 | ||||||
37 | Ligand Pharmaceuticals, Inc.(b) | 4,472 | ||||||
846 | Lion Biotechnologies, Inc.(b) | 4,797 | ||||||
72 | LivaNova PLC(b) | 3,797 | ||||||
153 | Loxo Oncology, Inc.(b) | 3,527 | ||||||
202 | Luminex Corp.(b) | 4,060 | ||||||
241 | MacroGenics, Inc.(b) | 4,955 | ||||||
58 | Magellan Health, Inc.(b) | 4,087 | ||||||
2,357 | MannKind Corp.(b) | 3,182 | ||||||
96 | Masimo Corp.(b) | 4,162 | ||||||
902 | Medgenics, Inc. (Israel)(b) | 4,303 | ||||||
127 | Medicines Co. (The)(b) | 4,520 | ||||||
106 | Medidata Solutions, Inc.(b) | 4,625 | ||||||
188 | Meridian Bioscience, Inc. | 3,593 | ||||||
217 | Merit Medical Systems, Inc.(b) | 4,394 | ||||||
494 | Merrimack Pharmaceuticals, Inc.(b) | 3,498 | ||||||
471 | MiMedx Group, Inc.(b) | 3,547 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Health Care (continued) | ||||||||
197 | Mirati Therapeutics, Inc.(b) | $ | 4,082 | |||||
61 | Molina Healthcare, Inc.(b) | 3,157 | ||||||
455 | Momenta Pharmaceuticals, Inc.(b) | 4,327 | ||||||
417 | MyoKardia, Inc.(b) | 4,770 | ||||||
107 | Myriad Genetics, Inc.(b) | 3,852 | ||||||
240 | NanoString Technologies, Inc.(b) | 3,821 | ||||||
446 | NantKwest, Inc.(b) | 3,697 | ||||||
437 | Natera, Inc.(b) | 4,291 | ||||||
63 | National Healthcare Corp. | 4,060 | ||||||
259 | National Research Corp., Class A | 3,727 | ||||||
102 | Natus Medical, Inc.(b) | 3,251 | ||||||
4,075 | Navidea Biopharmaceuticals, Inc.(b) | 5,623 | ||||||
304 | Nektar Therapeutics(b) | 4,767 | ||||||
86 | Neogen Corp.(b) | 4,063 | ||||||
616 | NeoGenomics, Inc.(b) | 5,014 | ||||||
385 | Neos Therapeutics, Inc.(b) | 3,492 | ||||||
108 | Neurocrine Biosciences, Inc.(b) | 4,923 | ||||||
71 | Nevro Corp.(b) | 4,775 | ||||||
231 | NewLink Genetics Corp.(b) | 3,745 | ||||||
1,307 | Nobilis Health Corp.(b) | 5,516 | ||||||
2,705 | Northwest Biotherapeutics, Inc.(b) | 3,787 | ||||||
762 | Novavax, Inc.(b) | 3,993 | ||||||
299 | Novocure Ltd.(b) | 3,857 | ||||||
83 | NuVasive, Inc.(b) | 4,394 | ||||||
842 | Nuvectra Corp.(b) | 7,077 | ||||||
273 | NxStage Medical, Inc.(b) | 4,401 | ||||||
443 | Ocular Therapeutix, Inc.(b) | 5,440 | ||||||
264 | Omeros Corp.(b) | 3,498 | ||||||
150 | Omnicell, Inc.(b) | 4,779 | ||||||
406 | OncoMed Pharmaceuticals, Inc.(b) | 5,034 | ||||||
3,461 | Oncothyreon, Inc.(b) | 4,499 | ||||||
94 | Ophthotech Corp.(b) | 4,394 | ||||||
564 | OraSure Technologies, Inc.(b) | 4,050 | ||||||
7,359 | Orexigen Therapeutics, Inc.(b) | 3,289 | ||||||
1,874 | Organovo Holdings, Inc.(b) | 5,097 | ||||||
94 | Orthofix International NV(b) | 4,113 | ||||||
765 | Osiris Therapeutics, Inc. | 4,292 | ||||||
286 | Otonomy, Inc.(b) | 4,078 | ||||||
396 | OvaScience, Inc.(b) | 3,318 | ||||||
98 | Owens & Minor, Inc. | 3,566 | ||||||
419 | Oxford Immunotec Global PLC(b) | 4,383 | ||||||
482 | Pacific Biosciences of California, Inc.(b) | 4,651 | ||||||
82 | Pacira Pharmaceuticals, Inc.(b) | 4,437 | ||||||
261 | Paratek Pharmaceuticals, Inc.(b) | 3,555 | ||||||
64 | PAREXEL International Corp.(b) | 3,910 | ||||||
1,227 | PDL BioPharma, Inc. | 4,626 | ||||||
87 | Penumbra, Inc.(b) | 4,741 | ||||||
9,632 | Peregrine Pharmaceuticals, Inc.(b) | 3,411 | ||||||
3,340 | Pernix Therapeutics Holdings, Inc.(b) | 2,505 | ||||||
467 | Pfenex, Inc.(b) | 3,811 | ||||||
184 | PharMerica Corp.(b) | 4,350 | ||||||
150 | Phibro Animal Health Corp., Class A | 3,111 | ||||||
202 | Portola Pharmaceuticals, Inc.(b) | 4,800 | ||||||
92 | PRA Health Sciences, Inc.(b) | 4,365 | ||||||
134 | Press Ganey Holdings, Inc.(b) | 4,083 | ||||||
75 | Prestige Brands Holdings, Inc.(b) | 4,258 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 51 |
|
PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Health Care (continued) | ||||||||
946 | Progenics Pharmaceuticals, Inc.(b) | $ | 5,023 | |||||
542 | Proteon Therapeutics, Inc.(b) | 5,290 | ||||||
95 | Prothena Corp. PLC (Ireland)(b) | 4,103 | ||||||
77 | Providence Service Corp. (The)(b) | 3,838 | ||||||
697 | PTC Therapeutics, Inc.(b) | 5,172 | ||||||
270 | Quality Systems, Inc. | 3,802 | ||||||
230 | Quidel Corp.(b) | 3,979 | ||||||
127 | Radius Health, Inc.(b) | 4,521 | ||||||
799 | RadNet, Inc.(b) | 4,035 | ||||||
879 | Raptor Pharmaceutical Corp.(b) | 4,316 | ||||||
399 | REGENXBIO, Inc.(b) | 4,158 | ||||||
623 | Regulus Therapeutics, Inc.(b) | 3,638 | ||||||
297 | Relypsa, Inc.(b) | 5,376 | ||||||
155 | Repligen Corp.(b) | 4,129 | ||||||
312 | Retrophin, Inc.(b) | 4,299 | ||||||
229 | Revance Therapeutics, Inc.(b) | 4,209 | ||||||
1,856 | Rigel Pharmaceuticals, Inc.(b) | 5,252 | ||||||
596 | Rockwell Medical, Inc.(b) | 5,513 | ||||||
1,035 | RTI Surgical, Inc.(b) | 4,130 | ||||||
125 | Sage Therapeutics, Inc.(b) | 4,711 | ||||||
331 | Sagent Pharmaceuticals, Inc.(b) | 3,853 | ||||||
717 | Sangamo BioSciences, Inc.(b) | 4,517 | ||||||
214 | Sarepta Therapeutics, Inc.(b) | 3,037 | ||||||
411 | SciClone Pharmaceuticals, Inc.(b) | 5,425 | ||||||
270 | SeaSpine Holdings Corp.(b) | 4,028 | ||||||
800 | Second Sight Medical Products, Inc.(b) | 3,784 | ||||||
338 | Select Medical Holdings Corp.(b) | 4,522 | ||||||
2,744 | Sequenom, Inc.(b) | 3,512 | ||||||
157 | Seres Therapeutics, Inc.(b) | 4,635 | ||||||
570 | Sientra, Inc.(b) | 4,628 | ||||||
781 | Sorrento Therapeutics, Inc.(b) | 5,358 | ||||||
120 | Spark Therapeutics, Inc.(b) | 4,307 | ||||||
267 | Spectranetics Corp. (The)(b) | 4,539 | ||||||
662 | Spectrum Pharmaceuticals, Inc.(b) | 4,694 | ||||||
543 | STAAR Surgical Co.(b) | 4,187 | ||||||
883 | Stemline Therapeutics, Inc.(b) | 4,856 | ||||||
55 | STERIS PLC | 3,887 | ||||||
383 | Sucampo Pharmaceuticals, Inc., Class A(b) | 4,129 | ||||||
272 | Supernus Pharmaceuticals, Inc.(b) | 4,668 | ||||||
275 | Surgery Partners, Inc.(b) | 4,480 | ||||||
87 | Surgical Care Affiliates, Inc.(b) | 4,206 | ||||||
217 | SurModics, Inc.(b) | 4,366 | ||||||
1,439 | Synergy Pharmaceuticals, Inc.(b) | 4,518 | ||||||
451 | T2 Biosystems, Inc.(b) | 4,136 | ||||||
481 | Tandem Diabetes Care, Inc.(b) | 5,354 | ||||||
95 | Team Health Holdings, Inc.(b) | 3,974 | ||||||
404 | Teladoc, Inc.(b) | 4,909 | ||||||
800 | Teligent, Inc.(b) | 4,416 | ||||||
84 | TESARO, Inc.(b) | 3,481 | ||||||
939 | Tetraphase Pharmaceuticals, Inc.(b) | 5,258 | ||||||
466 | TG Therapeutics, Inc.(b) | 4,245 | ||||||
620 | TherapeuticsMD, Inc.(b) | 5,115 | ||||||
222 | Theravance Biopharma, Inc. (Cayman Islands)(b) | 4,607 | ||||||
750 | Tokai Pharmaceuticals, Inc.(b) | 5,498 | ||||||
881 | TransEnterix, Inc.(b) | 1,322 | ||||||
507 | Trevena, Inc.(b) | 3,950 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Health Care (continued) | ||||||||
158 | Triple-S Management Corp., Class B(b) | $ | 4,114 | |||||
752 | Trovagene, Inc.(b) | 3,023 | ||||||
81 | U.S. Physical Therapy, Inc. | 4,039 | ||||||
68 | Ultragenyx Pharmaceutical, Inc.(b) | 4,598 | ||||||
5,443 | Unilife Corp.(b) | 2,993 | ||||||
545 | Universal American Corp. | 4,055 | ||||||
62 | Utah Medical Products, Inc. | 4,148 | ||||||
514 | Vanda Pharmaceuticals, Inc.(b) | 4,575 | ||||||
124 | Vascular Solutions, Inc.(b) | 4,334 | ||||||
739 | Veracyte, Inc.(b) | 4,286 | ||||||
2,783 | Verastem, Inc.(b) | 4,592 | ||||||
585 | Versartis, Inc.(b) | 5,300 | ||||||
640 | Vitae Pharmaceuticals, Inc.(b) | 4,602 | ||||||
441 | Vital Therapies, Inc.(b) | 3,779 | ||||||
3,399 | VIVUS, Inc.(b) | 5,608 | ||||||
394 | Vocera Communications, Inc.(b) | 4,618 | ||||||
439 | Voyager Therapeutics, Inc.(b) | 5,114 | ||||||
739 | vTv Therapeutics, Inc., Class A(b) | 4,656 | ||||||
42 | WellCare Health Plans, Inc.(b) | 3,780 | ||||||
58 | West Pharmaceutical Services, Inc. | 4,130 | ||||||
240 | Wright Medical Group NV(b) | 4,507 | ||||||
375 | XBiotech, Inc.(b) | 4,781 | ||||||
321 | Xencor, Inc.(b) | 3,932 | ||||||
835 | XenoPort, Inc.(b) | 3,674 | ||||||
5,289 | XOMA Corp.(b) | 4,330 | ||||||
677 | Zafgen, Inc.(b) | 4,312 | ||||||
152 | Zeltiq Aesthetics, Inc.(b) | 4,545 | ||||||
552 | ZIOPHARM Oncology, Inc.(b) | 4,339 | ||||||
423 | Zogenix, Inc.(b) | 4,336 | ||||||
410 | Zynerba Pharmaceuticals, Inc.(b) | 3,342 | ||||||
|
| |||||||
1,566,287 | ||||||||
|
| |||||||
Industrials—13.5% | ||||||||
472 | AAON, Inc. | 12,517 | ||||||
255 | AAR Corp. | 6,130 | ||||||
183 | ABM Industries, Inc. | 5,887 | ||||||
1,338 | Acacia Research Corp. | 6,449 | ||||||
678 | ACCO Brands Corp.(b) | 6,468 | ||||||
3,704 | Accuride Corp.(b) | 6,001 | ||||||
237 | Actuant Corp., Class A | 6,330 | ||||||
611 | Advanced Drainage Systems, Inc. | 14,126 | ||||||
188 | Advisory Board Co. (The)(b) | 5,948 | ||||||
276 | Aegion Corp.(b) | 5,860 | ||||||
365 | Aerojet Rocketdyne Holdings, Inc.(b) | 6,614 | ||||||
210 | Aerovironment, Inc.(b) | 6,065 | ||||||
380 | Air Transport Services Group, Inc.(b) | 5,354 | ||||||
270 | Aircastle Ltd. | 5,859 | ||||||
103 | Alamo Group, Inc. | 5,813 | ||||||
156 | Albany International Corp., Class A | 6,285 | ||||||
33 | Allegiant Travel Co. | 5,299 | ||||||
339 | Allied Motion Technologies, Inc. | 7,305 | ||||||
213 | Altra Industrial Motion Corp. | 6,113 | ||||||
141 | American Railcar Industries, Inc. | 5,782 | ||||||
186 | American Science & Engineering, Inc. | 5,329 | ||||||
67 | American Woodmark Corp.(b) | 4,880 | ||||||
292 | Apogee Enterprises, Inc. | 12,101 | ||||||
135 | Applied Industrial Technologies, Inc. | 6,187 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 52 |
|
PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Industrials (continued) | ||||||||
1,249 | ARC Document Solutions, Inc.(b) | $ | 5,146 | |||||
260 | ArcBest Corp. | 4,963 | ||||||
170 | Argan, Inc. | 5,811 | ||||||
129 | Astec Industries, Inc. | 6,244 | ||||||
162 | Astronics Corp.(b) | 5,986 | ||||||
143 | Atlas Air Worldwide Holdings, Inc.(b) | 5,711 | ||||||
104 | AZZ, Inc. | 5,712 | ||||||
167 | Barnes Group, Inc. | 5,426 | ||||||
212 | Barrett Business Services, Inc. | 6,574 | ||||||
314 | Beacon Roofing Supply, Inc.(b) | 13,417 | ||||||
557 | Blue Bird Corp.(b) | 6,021 | ||||||
785 | BMC Stock Holdings, Inc.(b) | 13,777 | ||||||
216 | Brady Corp., Class A | 5,722 | ||||||
253 | Briggs & Stratton Corp. | 5,356 | ||||||
177 | Brink’s Co. (The) | 5,990 | ||||||
1,228 | Builders FirstSource, Inc.(b) | 13,619 | ||||||
627 | CAI International, Inc.(b) | 6,408 | ||||||
864 | Casella Waste Systems, Inc., Class A(b) | 6,186 | ||||||
586 | CBIZ, Inc.(b) | 5,965 | ||||||
960 | CDI Corp. | 6,864 | ||||||
92 | CEB, Inc. | 5,675 | ||||||
938 | CECO Environmental Corp. | 6,191 | ||||||
545 | Celadon Group, Inc. | 5,488 | ||||||
284 | Chart Industries, Inc.(b) | 7,310 | ||||||
126 | CIRCOR International, Inc. | 7,113 | ||||||
19,367 | Civeo Corp.(b) | 29,438 | ||||||
�� | 101 | CLARCOR, Inc. | 5,936 | |||||
377 | Columbus McKinnon Corp. | 6,224 | ||||||
414 | Comfort Systems USA, Inc. | 12,209 | ||||||
2,275 | Commercial Vehicle Group, Inc.(b) | 5,847 | ||||||
698 | Continental Building Products, Inc.(b) | 13,688 | ||||||
247 | Covenant Transportation Group, Inc., Class A(b) | 4,918 | ||||||
298 | CRA International, Inc.(b) | 6,467 | ||||||
150 | Cubic Corp. | 6,236 | ||||||
78 | Curtiss-Wright Corp. | 5,973 | ||||||
96 | Deluxe Corp. | 6,027 | ||||||
302 | DigitalGlobe, Inc.(b) | 6,692 | ||||||
257 | Douglas Dynamics, Inc. | 5,888 | ||||||
372 | Ducommun, Inc.(b) | 5,919 | ||||||
334 | DXP Enterprises, Inc.(b) | 7,298 | ||||||
93 | Dycom Industries, Inc.(b) | 6,566 | ||||||
219 | Echo Global Logistics, Inc.(b) | 5,118 | ||||||
121 | EMCOR Group, Inc. | 5,866 | ||||||
152 | Encore Wire Corp. | 5,814 | ||||||
104 | EnerSys | 6,070 | ||||||
333 | Engility Holdings, Inc.(b) | 6,550 | ||||||
297 | Ennis, Inc. | 5,803 | ||||||
101 | EnPro Industries, Inc. | 5,917 | ||||||
151 | ESCO Technologies, Inc. | 5,810 | ||||||
188 | Essendant, Inc. | 5,789 | ||||||
90 | Esterline Technologies Corp.(b) | 6,179 | ||||||
463 | ExOne Co. (The)(b) | 6,121 | ||||||
117 | Exponent, Inc. | 5,831 | ||||||
454 | Federal Signal Corp. | 6,215 | ||||||
130 | Forward Air Corp. | 5,925 | ||||||
285 | Franklin Covey Co.(b) | 4,694 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Industrials (continued) | ||||||||
184 | Franklin Electric Co., Inc. | $ | 5,813 | |||||
379 | FreightCar America, Inc. | 6,500 | ||||||
171 | FTI Consulting, Inc.(b) | 6,891 | ||||||
3,504 | FuelCell Energy, Inc.(b) | 20,884 | ||||||
81 | G&K Services, Inc., Class A | 5,723 | ||||||
161 | Generac Holdings, Inc.(b) | 6,137 | ||||||
543 | General Cable Corp. | 8,493 | ||||||
476 | Gibraltar Industries, Inc.(b) | 12,590 | ||||||
510 | Global Brass & Copper Holdings, Inc. | 13,821 | ||||||
232 | Gorman-Rupp Co. (The) | 6,563 | ||||||
222 | GP Strategies Corp.(b) | 5,181 | ||||||
315 | Graham Corp. | 5,831 | ||||||
126 | Granite Construction, Inc. | 5,618 | ||||||
1,356 | Great Lakes Dredge & Dock Corp.(b) | 6,197 | ||||||
216 | Greenbrier Cos., Inc. (The) | 6,478 | ||||||
832 | Griffon Corp. | 13,154 | ||||||
334 | H&E Equipment Services, Inc. | 6,757 | ||||||
1,090 | Harsco Corp. | 7,728 | ||||||
126 | Hawaiian Holdings, Inc.(b) | 5,301 | ||||||
1,675 | HC2 Holdings, Inc.(b) | 6,466 | ||||||
162 | Healthcare Services Group, Inc. | 6,132 | ||||||
311 | Heartland Express, Inc. | 5,632 | ||||||
98 | HEICO Corp. | 6,008 | ||||||
250 | Heidrick & Struggles International, Inc. | 4,933 | ||||||
636 | Heritage-Crystal Clean, Inc.(b) | 6,614 | ||||||
192 | Herman Miller, Inc. | 5,793 | ||||||
1,794 | Hill International, Inc.(b) | 7,607 | ||||||
202 | Hillenbrand, Inc. | 6,123 | ||||||
154 | HNI Corp. | 6,733 | ||||||
149 | Hub Group, Inc., Class A(b) | 5,739 | ||||||
190 | Hurco Cos., Inc. | 6,152 | ||||||
103 | Huron Consulting Group, Inc.(b) | 5,728 | ||||||
88 | Hyster-Yale Materials Handling, Inc., Class A | 5,390 | ||||||
171 | ICF International, Inc.(b) | 6,732 | ||||||
781 | InnerWorkings, Inc.(b) | 6,381 | ||||||
113 | Insperity, Inc. | 5,963 | ||||||
434 | Insteel Industries, Inc. | 12,582 | ||||||
708 | Interface, Inc. | 12,050 | ||||||
105 | John Bean Technologies Corp. | 5,475 | ||||||
131 | Kadant, Inc. | 6,203 | ||||||
138 | Kaman Corp. | 5,808 | ||||||
328 | Kelly Services, Inc., Class A | 6,157 | ||||||
777 | KEYW Holding Corp. (The)(b) | 5,354 | ||||||
313 | Kforce, Inc. | 5,950 | ||||||
506 | Kimball International, Inc., Class B | 5,890 | ||||||
182 | KLX, Inc.(b) | 6,137 | ||||||
227 | Knight Transportation, Inc. | 6,031 | ||||||
281 | Knoll, Inc. | 6,561 | ||||||
206 | Korn/Ferry International | 5,591 | ||||||
1,237 | Kratos Defense & Security Solutions, Inc.(b) | 6,568 | ||||||
629 | Lawson Products, Inc.(b) | 12,322 | ||||||
780 | LB Foster Co., Class A | 15,350 | ||||||
75 | Lindsay Corp. | 5,735 | ||||||
1,173 | LSI Industries, Inc. | 14,838 | ||||||
179 | Lydall, Inc.(b) | 6,585 | ||||||
323 | Marten Transport Ltd. | 6,027 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 53 |
|
PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Industrials (continued) | ||||||||
201 | Masonite International Corp.(b) | $ | 13,600 | |||||
291 | MasTec, Inc.(b) | 6,594 | ||||||
151 | Matson, Inc. | 5,871 | ||||||
94 | Matthews International Corp., Class A | 4,948 | ||||||
236 | McGrath RentCorp | 5,754 | ||||||
261 | Mercury Systems, Inc.(b) | 5,486 | ||||||
622 | Meritor, Inc.(b) | 5,287 | ||||||
358 | Milacron Holdings Corp.(b) | 6,133 | ||||||
295 | Miller Industries, Inc. | 6,272 | ||||||
227 | Mistras Group, Inc.(b) | 5,532 | ||||||
187 | Mobile Mini, Inc. | 6,031 | ||||||
131 | Moog, Inc., Class A(b) | 6,401 | ||||||
960 | MRC Global, Inc.(b) | 13,421 | ||||||
122 | MSA Safety, Inc. | 5,867 | ||||||
442 | Mueller Industries, Inc. | 13,950 | ||||||
1,333 | Mueller Water Products, Inc., Class A | 14,330 | ||||||
113 | Multi-Color Corp. | 6,761 | ||||||
232 | MYR Group, Inc.(b) | 5,918 | ||||||
55 | National Presto Industries, Inc. | 4,795 | ||||||
375 | Navigant Consulting, Inc.(b) | 5,985 | ||||||
5,159 | Navios Maritime Holdings, Inc. (Monaco) | 6,036 | ||||||
477 | Navistar International Corp.(b) | 7,198 | ||||||
935 | NCI Building Systems, Inc.(b) | 13,782 | ||||||
830 | Neff Corp., Class A(b) | 7,097 | ||||||
1,010 | NN, Inc. | 15,190 | ||||||
270 | Nortek, Inc.(b) | 12,733 | ||||||
219 | NV5 Global, Inc.(b) | 5,438 | ||||||
364 | Omega Flex, Inc. | 11,990 | ||||||
165 | On Assignment, Inc.(b) | 5,950 | ||||||
1,129 | Orion Marine Group, Inc.(b) | 6,593 | ||||||
191 | P.A.M. Transportation Services, Inc.(b) | 4,720 | ||||||
141 | Park-Ohio Holdings Corp. | 3,588 | ||||||
272 | Patrick Industries, Inc.(b) | 12,471 | ||||||
1,362 | PGT, Inc.(b) | 14,260 | ||||||
2,875 | Plug Power, Inc.(b) | 5,923 | ||||||
943 | Ply Gem Holdings, Inc.(b) | 13,815 | ||||||
197 | Powell Industries, Inc. | 6,131 | ||||||
500 | Power Solutions International, Inc.(b) | 6,475 | ||||||
1,276 | PowerSecure International, Inc.(b) | 23,887 | ||||||
162 | Preformed Line Products Co. | 6,799 | ||||||
241 | Primoris Services Corp. | 5,637 | ||||||
76 | Proto Labs, Inc.(b) | 4,547 | ||||||
469 | Quad Graphics, Inc., Class A | 5,886 | ||||||
747 | Quanex Building Products Corp. | 14,073 | ||||||
1,637 | Radiant Logistics, Inc.(b) | 6,450 | ||||||
367 | Raven Industries, Inc. | 5,905 | ||||||
175 | RBC Bearings, Inc.(b) | 12,828 | ||||||
381 | Resources Connection, Inc. | 5,627 | ||||||
650 | Rexnord Corp.(b) | 14,170 | ||||||
473 | Roadrunner Transportation Systems, Inc.(b) | 5,591 | ||||||
540 | RPX Corp.(b) | 5,983 | ||||||
325 | Rush Enterprises, Inc., Class A(b) | 6,399 | ||||||
210 | Saia, Inc.(b) | 6,073 | ||||||
1,829 | Scorpio Bulkers, Inc.(b) | 7,042 | ||||||
346 | Simpson Manufacturing Co., Inc. | 13,010 | ||||||
300 | SkyWest, Inc. | 7,050 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Industrials (continued) | ||||||||
244 | SP Plus Corp.(b) | $ | 5,436 | |||||
287 | Sparton Corp.(b) | 6,159 | ||||||
77 | Standex International Corp. | 5,905 | ||||||
394 | Steelcase, Inc., Class A | 6,012 | ||||||
175 | Sun Hydraulics Corp. | 6,192 | ||||||
329 | Swift Transportation Co., Class A(b) | 5,468 | ||||||
428 | TAL International Group, Inc. | 7,319 | ||||||
316 | TASER International, Inc.(b) | 5,770 | ||||||
196 | Team, Inc.(b) | 5,631 | ||||||
67 | Teledyne Technologies, Inc.(b) | 6,228 | ||||||
113 | Tennant Co. | 6,035 | ||||||
201 | Tetra Tech, Inc. | 5,909 | ||||||
431 | Textainer Group Holdings Ltd. | 6,650 | ||||||
329 | Thermon Group Holdings, Inc.(b) | 6,165 | ||||||
1,076 | Titan International, Inc. | 7,134 | ||||||
506 | Titan Machinery, Inc.(b) | 6,578 | ||||||
860 | TRC Cos., Inc.(b) | 7,362 | ||||||
273 | Trex Co., Inc.(b) | 12,954 | ||||||
332 | TriMas Corp.(b) | 6,009 | ||||||
428 | TriNet Group, Inc.(b) | 7,113 | ||||||
238 | TrueBlue, Inc.(b) | 4,448 | ||||||
385 | Tutor Perini Corp.(b) | 6,091 | ||||||
569 | Twin Disc, Inc. | 7,539 | ||||||
61 | UniFirst Corp. | 6,611 | ||||||
761 | Univar, Inc.(b) | 13,241 | ||||||
154 | Universal Forest Products, Inc. | 11,804 | ||||||
349 | Universal Logistics Holdings, Inc. | 4,977 | ||||||
139 | US Ecology, Inc. | 6,259 | ||||||
339 | USA Truck, Inc.(b) | 6,007 | ||||||
269 | Vectrus, Inc.(b) | 5,800 | ||||||
331 | Veritiv Corp.(b) | 13,578 | ||||||
162 | Viad Corp. | 4,820 | ||||||
598 | Vicor Corp.(b) | 5,735 | ||||||
153 | Virgin America, Inc.(b) | 8,521 | ||||||
805 | Volt Information Sciences, Inc.(b) | 6,046 | ||||||
87 | VSE Corp. | 5,397 | ||||||
447 | Wabash National Corp.(b) | 6,370 | ||||||
118 | WageWorks, Inc.(b) | 6,355 | ||||||
107 | Watts Water Technologies, Inc., Class A | 5,978 | ||||||
218 | Werner Enterprises, Inc. | 5,524 | ||||||
414 | Wesco Aircraft Holdings, Inc.(b) | 5,974 | ||||||
1,047 | West Corp. | 22,437 | ||||||
111 | Woodward, Inc. | 6,017 | ||||||
1,160 | Xerium Technologies, Inc.(b) | 6,136 | ||||||
186 | XPO Logistics, Inc.(b) | 5,606 | ||||||
632 | YRC Worldwide, Inc.(b) | 5,814 | ||||||
|
| |||||||
1,767,802 | ||||||||
|
| |||||||
Information Technology—13.1% | ||||||||
867 | A10 Networks, Inc.(b) | 5,176 | ||||||
266 | ACI Worldwide, Inc.(b) | 5,317 | ||||||
571 | Actua Corp.(b) | 5,413 | ||||||
243 | Acxiom Corp.(b) | 5,339 | ||||||
261 | ADTRAN, Inc. | 5,043 | ||||||
173 | Advanced Energy Industries, Inc.(b) | 5,597 | ||||||
1,828 | Advanced Micro Devices, Inc.(b) | 6,489 | ||||||
1,009 | Aerohive Networks, Inc.(b) | 5,852 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 54 |
|
PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Information Technology (continued) | ||||||||
501 | Agilysys, Inc.(b) | $ | 5,351 | |||||
230 | Alarm.com Holdings, Inc.(b) | 5,246 | ||||||
356 | Alliance Fiber Optic Products, Inc.(b) | 6,593 | ||||||
471 | Alpha & Omega Semiconductor Ltd.(b) | 6,118 | ||||||
125 | Ambarella, Inc.(b) | 5,138 | ||||||
948 | Amber Road, Inc.(b) | 4,655 | ||||||
582 | American Software, Inc., Class A | 5,319 | ||||||
918 | Amkor Technology, Inc.(b) | 5,242 | ||||||
578 | Angie’s List, Inc.(b) | 5,057 | ||||||
101 | Anixter International, Inc.(b) | 6,292 | ||||||
629 | Apigee Corp.(b) | 6,101 | ||||||
419 | AppFolio, Inc., Class A(b) | 5,254 | ||||||
791 | Applied Micro Circuits Corp.(b) | 4,936 | ||||||
334 | Applied Optoelectronics, Inc.(b) | 3,741 | ||||||
146 | Aspen Technology, Inc.(b) | 5,552 | ||||||
261 | AVG Technologies NV(b) | 5,168 | ||||||
825 | Avid Technology, Inc.(b) | 4,603 | ||||||
417 | AVX Corp. | 5,513 | ||||||
1,890 | Axcelis Technologies, Inc.(b) | 5,405 | ||||||
89 | Badger Meter, Inc. | 6,348 | ||||||
565 | Bankrate, Inc.(b) | 5,164 | ||||||
340 | Barracuda Networks, Inc.(b) | 5,991 | ||||||
1,656 | Bazaarvoice, Inc.(b) | 5,548 | ||||||
356 | Bel Fuse, Inc., Class B | 5,931 | ||||||
217 | Belden, Inc. | 13,701 | ||||||
229 | Benchmark Electronics, Inc.(b) | 4,447 | ||||||
167 | Benefitfocus, Inc.(b) | 6,329 | ||||||
370 | Black Box Corp. | 5,409 | ||||||
84 | Blackbaud, Inc. | 5,189 | ||||||
90 | Blackhawk Network Holdings, Inc.(b) | 2,892 | ||||||
1,068 | Blucora, Inc.(b) | 8,555 | ||||||
175 | Bottomline Technologies (de), Inc.(b) | 4,298 | ||||||
412 | Box, Inc., Class A(b) | 5,327 | ||||||
847 | Brightcove, Inc.(b) | 5,124 | ||||||
136 | BroadSoft, Inc.(b) | 5,326 | ||||||
513 | Brooks Automation, Inc. | 4,853 | ||||||
320 | Cabot Microelectronics Corp. | 13,405 | ||||||
51 | CACI International, Inc., Class A(b) | 4,904 | ||||||
296 | CalAmp Corp.(b) | 4,431 | ||||||
753 | Calix, Inc.(b) | 5,218 | ||||||
329 | Callidus Software, Inc.(b) | 6,021 | ||||||
660 | Carbonite, Inc.(b) | 4,976 | ||||||
84 | Cardtronics, Inc.(b) | 3,311 | ||||||
770 | Care.com, Inc.(b) | 5,729 | ||||||
246 | Cascade Microtech, Inc.(b) | 5,144 | ||||||
57 | Cass Information Systems, Inc. | 2,820 | ||||||
84 | Cavium, Inc.(b) | 4,147 | ||||||
246 | CEVA, Inc.(b) | 5,673 | ||||||
479 | ChannelAdvisor Corp.(b) | 5,968 | ||||||
501 | Checkpoint Systems, Inc.(b) | 5,070 | ||||||
2,456 | Ciber, Inc.(b) | 5,698 | ||||||
278 | Ciena Corp.(b) | 4,679 | ||||||
53 | Cimpress NV (Netherlands)(b) | 4,657 | ||||||
147 | Cirrus Logic, Inc.(b) | 5,307 | ||||||
335 | Clearfield, Inc.(b) | 6,218 | ||||||
57 | Coherent, Inc.(b) | 5,324 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Information Technology (continued) | ||||||||
439 | Cohu, Inc. | $ | 5,075 | |||||
127 | CommVault Systems, Inc.(b) | 5,559 | ||||||
170 | comScore, Inc.(b) | 5,205 | ||||||
223 | Comtech Telecommunications Corp. | 5,397 | ||||||
733 | Control4 Corp.(b) | 5,432 | ||||||
214 | Convergys Corp. | 5,671 | ||||||
159 | Cornerstone OnDemand, Inc.(b) | 5,462 | ||||||
375 | CPI Card Group, Inc. | 2,974 | ||||||
126 | Cray, Inc.(b) | 4,772 | ||||||
117 | CSG Systems International, Inc. | 5,192 | ||||||
333 | CTS Corp. | 5,518 | ||||||
240 | Cvent, Inc.(b) | 8,484 | ||||||
640 | Daktronics, Inc. | 5,568 | ||||||
612 | Datalink Corp.(b) | 4,914 | ||||||
141 | Demandware, Inc.(b) | 6,497 | ||||||
757 | DHI Group, Inc.(b) | 5,382 | ||||||
176 | Diebold, Inc. | 4,624 | ||||||
587 | Digi International, Inc.(b) | 6,205 | ||||||
166 | Digimarc Corp.(b) | 4,955 | ||||||
4,621 | Digital Turbine, Inc.(b) | 3,974 | ||||||
263 | Diodes, Inc.(b) | 4,897 | ||||||
580 | DSP Group, Inc.(b) | 5,510 | ||||||
234 | DTS, Inc.(b) | 5,106 | ||||||
923 | EarthLink Holdings Corp. | 5,363 | ||||||
421 | Eastman Kodak Co.(b) | 4,976 | ||||||
129 | Ebix, Inc. | 6,207 | ||||||
648 | Electro Rent Corp. | 6,486 | ||||||
140 | Electronics for Imaging, Inc.(b) | 5,578 | ||||||
60 | Ellie Mae, Inc.(b) | 5,016 | ||||||
1,019 | EMCORE Corp.(b) | 5,808 | ||||||
532 | Endurance International Group Holdings, Inc.(b) | 5,698 | ||||||
3,241 | EnerNOC, Inc.(b) | 22,104 | ||||||
396 | Entegris, Inc.(b) | 5,263 | ||||||
199 | Envestnet, Inc.(b) | 6,245 | ||||||
70 | EPAM Systems, Inc.(b) | 5,105 | ||||||
366 | EPIQ Systems, Inc. | 5,406 | ||||||
65 | ePlus, Inc.(b) | 5,225 | ||||||
41 | Euronet Worldwide, Inc.(b) | 3,161 | ||||||
1,354 | Everi Holdings, Inc.(b) | 2,275 | ||||||
220 | EVERTEC, Inc. | 2,963 | ||||||
968 | Everyday Health, Inc.(b) | 5,614 | ||||||
970 | Exar Corp.(b) | 5,917 | ||||||
115 | ExlService Holdings, Inc.(b) | 5,565 | ||||||
1,629 | Extreme Networks, Inc.(b) | 5,718 | ||||||
166 | Fabrinet (Thailand)(b) | 5,307 | ||||||
29 | Fair Isaac Corp. | 3,095 | ||||||
254 | Fairchild Semiconductor International, Inc.(b) | 5,080 | ||||||
187 | FARO Technologies, Inc.(b) | 5,430 | ||||||
59 | FEI Co. | 5,252 | ||||||
280 | Finisar Corp.(b) | 4,609 | ||||||
544 | Five9, Inc.(b) | 5,032 | ||||||
132 | Fleetmatics Group PLC(b) | 4,785 | ||||||
680 | FormFactor, Inc.(b) | 5,236 | ||||||
174 | Forrester Research, Inc. | 5,850 | ||||||
165 | Gigamon, Inc.(b) | 5,377 | ||||||
171 | Globant SA(b) | 6,069 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 55 |
|
PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Information Technology (continued) | ||||||||
1,890 | Glu Mobile, Inc.(b) | $ | 5,046 | |||||
2,183 | Gogo, Inc.(b) | 23,118 | ||||||
221 | GrubHub, Inc.(b) | 5,795 | ||||||
361 | GSI Group, Inc.(b) | 5,253 | ||||||
325 | GTT Communications, Inc.(b) | 5,193 | ||||||
1,199 | Guidance Software, Inc.(b) | 6,115 | ||||||
95 | Guidewire Software, Inc.(b) | 5,412 | ||||||
398 | Hackett Group, Inc. (The) | 5,922 | ||||||
1,593 | Harmonic, Inc.(b) | 5,512 | ||||||
487 | Hortonworks, Inc.(b) | 5,635 | ||||||
110 | HubSpot, Inc.(b) | 4,872 | ||||||
245 | II-VI, Inc.(b) | 5,113 | ||||||
3,344 | Imation Corp.(b) | 5,250 | ||||||
624 | Immersion Corp.(b) | 4,561 | ||||||
107 | Imperva, Inc.(b) | 4,973 | ||||||
2,529 | inContact, Inc.(b) | 23,545 | ||||||
334 | Infinera Corp.(b) | 3,971 | ||||||
308 | Infoblox, Inc.(b) | 5,153 | ||||||
154 | Inphi Corp.(b) | 4,569 | ||||||
182 | Insight Enterprises, Inc.(b) | 4,497 | ||||||
277 | Instructure, Inc.(b) | 5,579 | ||||||
256 | Integrated Device Technology, Inc.(b) | 4,936 | ||||||
149 | Interactive Intelligence Group, Inc.(b) | 5,538 | ||||||
96 | InterDigital, Inc. | 5,470 | ||||||
2,009 | Internap Corp.(b) | 4,581 | ||||||
386 | Intersil Corp., Class A | 4,512 | ||||||
649 | Intralinks Holdings, Inc.(b) | 5,783 | ||||||
645 | InvenSense, Inc.(b) | 4,954 | ||||||
142 | Itron, Inc.(b) | 5,839 | ||||||
435 | Ixia(b) | 4,402 | ||||||
442 | IXYS Corp. | 4,774 | ||||||
382 | j2 Global, Inc. | 24,265 | ||||||
1,432 | Jive Software, Inc.(b) | 5,828 | ||||||
436 | Kimball Electronics, Inc.(b) | 4,770 | ||||||
401 | Knowles Corp.(b) | 5,361 | ||||||
3,217 | Kopin Corp.(b) | 5,340 | ||||||
540 | KVH Industries, Inc.(b) | 5,270 | ||||||
870 | Lattice Semiconductor Corp.(b) | 4,846 | ||||||
3,138 | Limelight Networks, Inc.(b) | 5,491 | ||||||
1,079 | Lionbridge Technologies, Inc.(b) | 5,384 | ||||||
1,156 | Liquidity Services, Inc.(b) | 6,450 | ||||||
49 | Littelfuse, Inc. | 5,708 | ||||||
901 | LivePerson, Inc.(b) | 5,451 | ||||||
103 | LogMeIn, Inc.(b) | 6,149 | ||||||
95 | Luxoft Holding, Inc., Class A(b) | 5,492 | ||||||
121 | M/A-Com Technology Solutions Holdings, Inc.(b) | 4,948 | ||||||
96 | Manhattan Associates, Inc.(b) | 5,812 | ||||||
163 | ManTech International Corp., Class A | 5,509 | ||||||
1,074 | Marchex, Inc., Class B | 4,564 | ||||||
1,706 | Marin Software, Inc.(b) | 4,367 | ||||||
271 | Marketo, Inc.(b) | 5,959 | ||||||
1,396 | Mattson Technology, Inc.(b) | 5,095 | ||||||
115 | MAXIMUS, Inc. | 6,083 | ||||||
285 | MaxLinear, Inc., Class A(b) | 4,774 | ||||||
260 | Mentor Graphics Corp. | 5,190 | ||||||
62 | Mesa Laboratories, Inc. | 6,248 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Information Technology (continued) | ||||||||
187 | Methode Electronics, Inc. | $ | 5,560 | |||||
133 | Microsemi Corp.(b) | 4,494 | ||||||
34 | MicroStrategy, Inc., Class A(b) | 6,097 | ||||||
385 | MINDBODY, Inc., Class A(b) | 5,240 | ||||||
140 | MKS Instruments, Inc. | 5,020 | ||||||
1,202 | Mobileiron, Inc.(b) | 4,604 | ||||||
488 | Model N, Inc.(b) | 5,212 | ||||||
3,279 | ModusLink Global Solutions, Inc.(b) | 4,787 | ||||||
503 | MoneyGram International, Inc.(b) | 3,093 | ||||||
83 | Monolithic Power Systems, Inc. | 5,181 | ||||||
221 | Monotype Imaging Holdings, Inc. | 4,869 | ||||||
1,829 | Monster Worldwide, Inc.(b) | 5,853 | ||||||
99 | MTS Systems Corp. | 5,566 | ||||||
222 | Multi-Fineline Electronix, Inc.(b) | 5,106 | ||||||
368 | Nanometrics, Inc.(b) | 6,572 | ||||||
381 | NeoPhotonics Corp.(b) | 4,568 | ||||||
129 | NETGEAR, Inc.(b) | 5,470 | ||||||
233 | NetScout Systems, Inc.(b) | 5,187 | ||||||
189 | NeuStar, Inc., Class A(b) | 4,440 | ||||||
213 | New Relic, Inc.(b) | 5,491 | ||||||
292 | NIC, Inc. | 5,171 | ||||||
708 | Nimble Storage, Inc.(b) | 5,225 | ||||||
3,322 | Novatel Wireless, Inc.(b) | 5,083 | ||||||
92 | NVE Corp. | 5,279 | ||||||
1,013 | Oclaro, Inc.(b) | 5,116 | ||||||
755 | OPOWER,Inc.(b) | 5,964 | ||||||
92 | OSI Systems, Inc.(b) | 4,682 | ||||||
565 | Park City Group, Inc.(b) | 5,368 | ||||||
332 | Park Electrochemical Corp. | 5,415 | ||||||
149 | Paycom Software, Inc.(b) | 5,693 | ||||||
188 | Paylocity Holding Corp.(b) | 7,195 | ||||||
212 | PC Connection, Inc. | 5,039 | ||||||
381 | PDF Solutions, Inc.(b) | 5,124 | ||||||
209 | Pegasystems, Inc. | 5,516 | ||||||
248 | Perficient, Inc.(b) | 5,178 | ||||||
464 | PFSweb, Inc.(b) | 6,542 | ||||||
501 | Photronics, Inc.(b) | 5,301 | ||||||
135 | Plantronics, Inc. | 5,191 | ||||||
133 | Plexus Corp.(b) | 5,554 | ||||||
470 | Polycom, Inc.(b) | 5,617 | ||||||
106 | Power Integrations, Inc. | 5,115 | ||||||
209 | Progress Software Corp.(b) | 5,334 | ||||||
99 | Proofpoint, Inc.(b) | 5,768 | ||||||
458 | PROS Holdings, Inc.(b) | 5,386 | ||||||
379 | Pure Storage, Inc., Class A(b) | 5,514 | ||||||
232 | Q2 Holdings, Inc.(b) | 5,547 | ||||||
251 | QAD, Inc., Class A | 4,922 | ||||||
174 | Qlik Technologies, Inc.(b) | 5,357 | ||||||
391 | QLogic Corp.(b) | 5,118 | ||||||
206 | Qualys, Inc.(b) | 5,187 | ||||||
9,070 | Quantum Corp.(b) | 4,175 | ||||||
1,374 | QuinStreet, Inc.(b) | 4,836 | ||||||
456 | Quotient Technology, Inc.(b) | 5,299 | ||||||
377 | Rambus, Inc.(b) | 4,381 | ||||||
392 | Rapid7, Inc.(b) | 4,908 | ||||||
1,268 | RealNetworks, Inc.(b) | 5,782 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 56 |
|
PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Information Technology (continued) | ||||||||
253 | RealPage, Inc.(b) | $ | 5,563 | |||||
221 | Reis, Inc. | 5,563 | ||||||
679 | RetailMeNot, Inc.(b) | 5,724 | ||||||
353 | RingCentral, Inc., Class A(b) | 6,735 | ||||||
1,603 | Rocket Fuel, Inc.(b) | 4,585 | ||||||
159 | Rofin-Sinar Technologies, Inc.(b) | 5,118 | ||||||
86 | Rogers Corp.(b) | 4,933 | ||||||
259 | Rovi Corp.(b) | 4,564 | ||||||
289 | Rubicon Project, Inc. (The)(b) | 5,598 | ||||||
515 | Ruckus Wireless, Inc.(b) | 7,076 | ||||||
394 | Rudolph Technologies, Inc.(b) | 5,465 | ||||||
226 | Sanmina Corp.(b) | 5,345 | ||||||
446 | Sapiens International Corp. NV (Israel) | 5,254 | ||||||
130 | ScanSource, Inc.(b) | 5,288 | ||||||
109 | Science Applications International Corp. | 5,787 | ||||||
387 | SciQuest, Inc.(b) | 5,348 | ||||||
966 | SeaChange International, Inc.(b) | 3,603 | ||||||
233 | Semtech Corp.(b) | 5,042 | ||||||
1,406 | ServiceSource International, Inc.(b) | 5,666 | ||||||
713 | ShoreTel, Inc.(b) | 4,364 | ||||||
130 | Shutterstock, Inc.(b) | 5,333 | ||||||
813 | Sigma Designs, Inc.(b) | 5,146 | ||||||
759 | Silicon Graphics International Corp.(b) | 3,400 | ||||||
117 | Silicon Laboratories, Inc.(b) | 5,476 | ||||||
371 | Silver Spring Networks, Inc.(b) | 5,213 | ||||||
714 | Sonus Networks, Inc.(b) | 5,898 | ||||||
127 | SPS Commerce, Inc.(b) | 6,468 | ||||||
42 | Stamps.com, Inc.(b) | 3,459 | ||||||
212 | Stratasys Ltd.(b) | 5,188 | ||||||
156 | Super Micro Computer, Inc.(b) | 4,198 | ||||||
198 | Sykes Enterprises, Inc.(b) | 5,772 | ||||||
70 | Synaptics, Inc.(b) | 5,009 | ||||||
164 | Synchronoss Technologies, Inc.(b) | 5,095 | ||||||
53 | SYNNEX Corp. | 4,376 | ||||||
104 | Syntel, Inc.(b) | 4,423 | ||||||
520 | Systemax, Inc.(b) | 4,706 | ||||||
144 | Take-Two Interactive Software, Inc.(b) | 4,922 | ||||||
670 | Tangoe, Inc.(b) | 5,909 | ||||||
67 | Tech Data Corp.(b) | 4,602 | ||||||
725 | TechTarget, Inc.(b) | 5,626 | ||||||
886 | Telenav, Inc.(b) | 5,050 | ||||||
211 | TeleTech Holdings, Inc. | 5,864 | ||||||
168 | Tessera Technologies, Inc. | 4,825 | ||||||
278 | Textura Corp.(b) | 7,336 | ||||||
487 | TiVo, Inc.(b) | 4,860 | ||||||
354 | Travelport Worldwide Ltd. | 4,938 | ||||||
661 | Travelzoo, Inc.(b) | 5,043 | ||||||
970 | TrueCar, Inc.(b) | 6,635 | ||||||
776 | TTM Technologies, Inc.(b) | 5,060 | ||||||
396 | TubeMogul, Inc.(b) | 5,132 | ||||||
41 | Tyler Technologies, Inc.(b) | 6,003 | ||||||
158 | Ubiquiti Networks, Inc.(b) | 5,628 | ||||||
997 | Ultra Clean Holdings, Inc.(b) | 5,673 | ||||||
240 | Ultratech, Inc.(b) | 5,206 | ||||||
679 | Unisys Corp.(b) | 5,235 | ||||||
434 | United Online, Inc.(b) | 4,700 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Information Technology (continued) | ||||||||
100 | Universal Display Corp.(b) | $ | 5,831 | |||||
289 | Varonis Systems, Inc.(b) | 5,534 | ||||||
338 | VASCO Data Security International, Inc.(b) | 5,858 | ||||||
288 | Veeco Instruments, Inc.(b) | 5,302 | ||||||
146 | Verint Systems, Inc.(b) | 4,941 | ||||||
70 | ViaSat, Inc.(b) | 5,369 | ||||||
1,103 | VirnetX Holding Corp.(b) | 4,952 | ||||||
151 | Virtusa Corp.(b) | 5,367 | ||||||
423 | Vishay Intertechnology, Inc. | 5,144 | ||||||
416 | Vishay Precision Group, Inc.(b) | 6,223 | ||||||
264 | Web.com Group, Inc.(b) | 5,277 | ||||||
66 | WebMD Health Corp.(b) | 4,141 | ||||||
257 | Wix.com Ltd. (Israel)(b) | 6,353 | ||||||
449 | Workiva, Inc., Class A(b) | 5,348 | ||||||
811 | Xactly Corp.(b) | 6,537 | ||||||
882 | Xcerra Corp.(b) | 5,204 | ||||||
291 | XO Group, Inc.(b) | 5,139 | ||||||
269 | Xura, Inc.(b) | 6,023 | ||||||
259 | Zendesk, Inc.(b) | 5,853 | ||||||
1,345 | Zix Corp.(b) | 5,017 | ||||||
|
| |||||||
1,711,790 | ||||||||
|
| |||||||
Materials—7.9% | ||||||||
494 | A. Schulman, Inc. | 13,778 | ||||||
198 | AEP Industries, Inc. | 12,203 | ||||||
3,052 | AK Steel Holding Corp.(b) | 14,283 | ||||||
802 | American Vanguard Corp.(b) | 13,273 | ||||||
589 | Axiall Corp. | 13,871 | ||||||
210 | Balchem Corp. | 12,886 | ||||||
361 | Berry Plastics Group, Inc.(b) | 13,003 | ||||||
665 | Boise Cascade Co.(b) | 13,879 | ||||||
897 | Calgon Carbon Corp. | 14,702 | ||||||
366 | Carpenter Technology Corp. | 12,960 | ||||||
1,782 | Century Aluminum Co.(b) | 15,717 | ||||||
251 | Chase Corp. | 14,129 | ||||||
499 | Chemtura Corp.(b) | 13,897 | ||||||
268 | Clearwater Paper Corp.(b) | 16,010 | ||||||
4,529 | Cliffs Natural Resources, Inc.(b) | 23,868 | ||||||
2,323 | Coeur Mining, Inc.(b) | 18,816 | ||||||
761 | Commercial Metals Co. | 13,637 | ||||||
214 | Deltic Timber Corp. | 13,375 | ||||||
1,082 | Ferro Corp.(b) | 13,785 | ||||||
1,483 | Ferroglobal PLC | 15,112 | ||||||
3,363 | Flotek Industries, Inc.(b) | 31,780 | ||||||
1,108 | FutureFuel Corp. | 12,454 | ||||||
402 | Greif, Inc., Class A | 13,949 | ||||||
304 | H.B. Fuller Co. | 13,595 | ||||||
362 | Hawkins, Inc. | 14,165 | ||||||
342 | Haynes International, Inc. | 12,835 | ||||||
661 | Headwaters, Inc.(b) | 13,227 | ||||||
4,698 | Hecla Mining Co. | 20,248 | ||||||
433 | Innophos Holdings, Inc. | 16,004 | ||||||
289 | Innospec, Inc. | 13,976 | ||||||
151 | Kaiser Aluminum Corp. | 14,319 | ||||||
974 | KapStone Paper and Packaging Corp. | 15,477 | ||||||
556 | KMG Chemicals, Inc. | 13,172 | ||||||
572 | Koppers Holdings, Inc.(b) | 14,374 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 57 |
|
PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Materials (continued) | ||||||||
775 | Kraton Performance Polymers, Inc.(b) | $ | 17,600 | |||||
2,375 | Kronos Worldwide, Inc. | 15,794 | ||||||
802 | Louisiana-Pacific Corp.(b) | 13,634 | ||||||
1,014 | LSB Industries, Inc.(b) | 13,344 | ||||||
485 | Materion Corp. | 14,060 | ||||||
234 | Minerals Technologies, Inc. | 14,017 | ||||||
775 | Multi Packaging Solutions International Ltd.(b) | 12,881 | ||||||
986 | Myers Industries, Inc. | 13,291 | ||||||
205 | Neenah Paper, Inc. | 13,343 | ||||||
764 | Olin Corp. | 16,648 | ||||||
772 | Olympic Steel, Inc. | 17,463 | ||||||
2,389 | OMNOVA Solutions, Inc.(b) | 17,081 | ||||||
641 | P.H. Glatfelter Co. | 14,698 | ||||||
425 | PolyOne Corp. | 15,292 | ||||||
151 | Quaker Chemical Corp. | 13,448 | ||||||
1,353 | Rayonier Advanced Materials, Inc. | 13,868 | ||||||
364 | Real Industry, Inc.(b) | 3,218 | ||||||
651 | Schnitzer Steel Industries, Inc., Class A | 13,424 | ||||||
411 | Schweitzer-Mauduit International, Inc. | 14,134 | ||||||
4,629 | Senomyx, Inc.(b) | 11,341 | ||||||
203 | Sensient Technologies Corp. | 13,652 | ||||||
12,260 | Solazyme, Inc.(b) | 28,688 | ||||||
233 | Stepan Co. | 14,281 | ||||||
1,257 | Stillwater Mining Co.(b) | 15,335 | ||||||
665 | Summit Materials, Inc., Class A(b) | 13,899 | ||||||
3,943 | SunCoke Energy, Inc. | 29,297 | ||||||
1,483 | TimkenSteel Corp. | 18,893 | ||||||
2,558 | Trecora Resources(b) | 29,289 | ||||||
821 | Tredegar Corp. | 13,103 | ||||||
351 | Trinseo SA(b) | 15,019 | ||||||
2,190 | Tronox Ltd., Class A | 15,943 | ||||||
219 | United States Lime & Minerals, Inc. | 11,732 | ||||||
203 | US Concrete, Inc.(b) | 12,537 | ||||||
355 | Worthington Industries, Inc. | 13,401 | ||||||
|
| |||||||
1,036,407 | ||||||||
|
| |||||||
Telecommunication Services—3.9% | ||||||||
2,494 | 8x8, Inc.(b) | 28,282 | ||||||
318 | Atlantic Tele-Network, Inc. | 22,867 | ||||||
3,131 | Boingo Wireless, Inc.(b) | 24,077 | ||||||
6,177 | Cincinnati Bell, Inc.(b) | 23,596 | ||||||
615 | Cogent Communications Group, Inc. | 23,801 | ||||||
943 | Consolidated Communications Holdings, Inc. | 22,293 | ||||||
1,553 | FairPoint Communications, Inc.(b) | 20,593 | ||||||
1,287 | General Communication, Inc., Class A(b) | 21,750 | ||||||
15,829 | Globalstar, Inc.(b) | 30,867 | ||||||
1,028 | Hawaiian Telcom Holdco, Inc.(b) | 23,675 | ||||||
1,513 | IDT Corp., Class B | 23,209 | ||||||
1,499 | Inteliquent, Inc. | 24,868 | ||||||
3,240 | Iridium Communications, Inc.(b) | 26,147 | ||||||
1,796 | Lumos Networks Corp.(b) | 22,899 | ||||||
2,597 | ORBCOMM, Inc.(b) | 25,736 | ||||||
167 | pdvWireless, Inc.(b) | 6,744 | ||||||
927 | Shenandoah Telecommunications Co. | 26,596 | ||||||
1,390 | Spok Holdings, Inc. | 23,616 | ||||||
813 | Straight Path Communications, Inc., Class B(b) | 29,756 | ||||||
5,208 | Vonage Holdings Corp.(b) | 24,321 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Telecommunication Services (continued) | ||||||||
3,218 | Windstream Holdings, Inc. | $ | 27,932 | |||||
|
| |||||||
503,625 | ||||||||
|
| |||||||
Utilities—6.2% | ||||||||
1,292 | Abengoa Yield PLC (Spain) | 23,295 | ||||||
416 | ALLETE, Inc. | 23,375 | ||||||
603 | American States Water Co. | 25,139 | ||||||
894 | Artesian Resources Corp., Class A | 24,129 | ||||||
9,855 | Atlantic Power Corp. | 26,214 | ||||||
571 | Avista Corp. | 22,880 | ||||||
404 | Black Hills Corp. | 24,478 | ||||||
913 | California Water Service Group | 25,500 | ||||||
371 | Chesapeake Utilities Corp. | 22,082 | ||||||
543 | Connecticut Water Service, Inc. | 25,532 | ||||||
1,768 | Dynegy, Inc.(b) | 31,170 | ||||||
515 | El Paso Electric Co. | 23,226 | ||||||
712 | Empire District Electric Co. (The) | 23,973 | ||||||
323 | IDACORP, Inc. | 23,492 | ||||||
451 | MGE Energy, Inc. | 22,482 | ||||||
743 | Middlesex Water Co. | 27,179 | ||||||
635 | New Jersey Resources Corp. | 22,657 | ||||||
435 | Northwest Natural Gas Co. | 22,420 | ||||||
377 | NorthWestern Corp. | 21,429 | ||||||
1,805 | NRG Yield, Inc., Class A | 27,310 | ||||||
383 | ONE Gas, Inc. | 22,394 | ||||||
570 | Ormat Technologies, Inc. | 24,738 | ||||||
806 | Otter Tail Corp. | 23,310 | ||||||
1,214 | Pattern Energy Group, Inc. | 25,494 | ||||||
384 | Piedmont Natural Gas Co., Inc. | 22,963 | ||||||
688 | PNM Resources, Inc. | 21,796 | ||||||
587 | Portland General Electric Co. | 23,316 | ||||||
642 | SJW Corp. | 22,091 | ||||||
824 | South Jersey Industries, Inc. | 22,998 | ||||||
353 | Southwest Gas Corp. | 22,913 | ||||||
343 | Spire, Inc. | 21,938 | ||||||
546 | Unitil Corp. | 21,578 | ||||||
324 | WGL Holdings, Inc. | 21,996 | ||||||
777 | York Water Co. (The) | 23,038 | ||||||
|
| |||||||
808,525 | ||||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $13,583,971) | 13,074,990 | |||||||
|
| |||||||
Rights—0.0% | ||||||||
Financials—0.0% | ||||||||
122 | Enterprise Bancorp, Inc., expiring 05/27/16(b) (Cost $0) | 14 | ||||||
|
| |||||||
Money Market Fund—0.1% | ||||||||
19,111 | Invesco Premier Portfolio—Institutional Class, 0.39%(d) (Cost $19,111) | 19,111 | ||||||
|
| |||||||
Total Investments (Cost $13,603,082)—100.1% | 13,094,115 | |||||||
Other assets less liabilities—(0.1)% | (18,808 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 13,075,307 | ||||||
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 58 |
|
PowerShares Russell 2000 Equal Weight Portfolio (EQWS) (continued)
April 30, 2016
Investment Abbreviations:
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | Non-income producing security. |
(c) | Affiliated company. The Fund’s Adviser and Invesco Mortgage Capital, Inc. REIT are wholly-owned subsidiaries of Invesco Ltd. and therefore, Invesco Ltd. and Invesco Mortgage Capital, Inc. REIT are considered to be affiliated. See Note 4. |
(d) | The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 59 |
|
Schedule of Investments(a)
PowerShares Russell 2000 Pure Growth Portfolio (PXSG)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.0% | ||||||||
Consumer Discretionary—13.2% | ||||||||
5,318 | American Axle & Manufacturing Holdings, Inc.(b) | $ | 82,482 | |||||
1,600 | Asbury Automotive Group, Inc.(b) | 96,992 | ||||||
2,924 | BJ’s Restaurants, Inc.(b) | 130,410 | ||||||
295 | Bloomin’ Brands, Inc. | 5,517 | ||||||
7,334 | Blue Nile, Inc. | 189,071 | ||||||
1,505 | Buffalo Wild Wings, Inc.(b) | 201,158 | ||||||
954 | Cheesecake Factory, Inc. (The) | 48,664 | ||||||
4,317 | ClubCorp Holdings, Inc. | 57,632 | ||||||
334 | Container Store Group, Inc. (The)(b) | 2,371 | ||||||
64 | Dave & Buster’s Entertainment, Inc.(b) | 2,477 | ||||||
991 | Dorman Products, Inc.(b) | 53,306 | ||||||
1,431 | Drew Industries, Inc. | 92,772 | ||||||
517 | Etsy, Inc.(b) | 4,539 | ||||||
3,233 | Five Below, Inc.(b) | 134,816 | ||||||
4,490 | Francesca’s Holdings Corp.(b) | 74,534 | ||||||
4,620 | Gentherm, Inc.(b) | 169,739 | ||||||
2,819 | Grand Canyon Education, Inc.(b) | 123,275 | ||||||
113 | Hibbett Sports, Inc.(b) | 4,079 | ||||||
2,041 | IMAX Corp.(b) | 65,312 | ||||||
6,036 | Installed Building Products, Inc.(b) | 160,437 | ||||||
2,118 | La Quinta Holdings, Inc.(b) | 27,047 | ||||||
1,579 | Liberty Tax, Inc., Class A | 18,869 | ||||||
4,944 | LifeLock, Inc.(b) | 57,548 | ||||||
719 | Lithia Motors, Inc., Class A | 59,691 | ||||||
3,773 | Mattress Firm Holding Corp.(b)(c) | 147,223 | ||||||
383 | Monro Muffler Brake, Inc. | 26,511 | ||||||
5,439 | Nautilus, Inc.(b) | 95,944 | ||||||
4,669 | Nexstar Broadcasting Group, Inc., Class A(c) | 239,660 | ||||||
1,956 | Outerwall, Inc.(c) | 80,802 | ||||||
733 | Oxford Industries, Inc. | 48,686 | ||||||
717 | Papa John’s International, Inc. | 40,575 | ||||||
1,925 | Pier 1 Imports, Inc. | 13,263 | ||||||
5,481 | Pinnacle Entertainment, Inc.(b) | 60,510 | ||||||
964 | Pool Corp. | 84,263 | ||||||
2,467 | Popeyes Louisiana Kitchen, Inc.(b) | 132,626 | ||||||
6,789 | Select Comfort Corp.(b) | 167,553 | ||||||
7,391 | Sinclair Broadcast Group, Inc., Class A | 237,029 | ||||||
143 | Tailored Brands, Inc. | 2,491 | ||||||
80 | Tenneco, Inc.(b) | 4,264 | ||||||
9,435 | Tile Shop Holdings, Inc. (The)(b) | 168,320 | ||||||
208 | Vail Resorts, Inc. | 26,965 | ||||||
324 | Vince Holding Corp.(b)(c) | 2,002 | ||||||
143 | Winmark Corp. | 13,614 | ||||||
2,279 | Zoe’s Kitchen, Inc.(b)(c) | 85,440 | ||||||
|
| |||||||
3,540,479 | ||||||||
|
| |||||||
Consumer Staples—3.3% | ||||||||
693 | Boston Beer Co., Inc. (The), Class A(b) | 108,163 | ||||||
2,438 | Calavo Growers, Inc. | 139,381 | ||||||
3,436 | Cal-Maine Foods, Inc.(c) | 174,411 | ||||||
88 | Casey’s General Stores, Inc. | 9,856 | ||||||
5,297 | Chefs’ Warehouse, Inc. (The)(b) | 102,073 | ||||||
3,036 | Natural Health Trends Corp.(c) | 109,873 | ||||||
988 | PriceSmart, Inc. | 85,502 | ||||||
1,210 | USANA Health Sciences, Inc.(b) | 143,312 | ||||||
|
| |||||||
872,571 | ||||||||
|
|
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Energy—0.4% | ||||||||
6,830 | RigNet, Inc.(b) | $ | 116,793 | |||||
|
| |||||||
Financials—5.9% | ||||||||
937 | Altisource Portfolio Solutions SA(b) | 29,319 | ||||||
65 | Associated Capital Group, Inc., Class A(b) | 1,981 | ||||||
4,549 | BofI Holding, Inc.(b)(c) | 92,663 | ||||||
3,632 | Cohen & Steers, Inc. | 142,629 | ||||||
3,959 | CoreSite Realty Corp. REIT | 296,648 | ||||||
297 | Diamond Hill Investment Group, Inc. | 52,052 | ||||||
34 | Evercore Partners, Inc., Class A | 1,756 | ||||||
294 | Fifth Street Asset Management, Inc., Class A | 1,050 | ||||||
4,654 | Financial Engines, Inc.(c) | 149,905 | ||||||
65 | GAMCO Investors, Inc., Class A | 2,572 | ||||||
2,444 | HFF, Inc., Class A | 77,792 | ||||||
1,939 | Marcus & Millichap, Inc.(b) | 48,630 | ||||||
2,126 | MarketAxess Holdings, Inc. | 260,988 | ||||||
2,411 | PRA Group, Inc.(b) | 79,997 | ||||||
203 | Ryman Hospitality Properties, Inc. REIT | 10,461 | ||||||
609 | Universal Health Realty Income Trust REIT | 33,251 | ||||||
1,714 | Universal Insurance Holdings, Inc. | 30,183 | ||||||
3,587 | Virtu Financial, Inc., Class A | 74,789 | ||||||
715 | Westwood Holdings Group, Inc. | 41,148 | ||||||
12,644 | WisdomTree Investments, Inc.(c) | 137,693 | ||||||
|
| |||||||
1,565,507 | ||||||||
|
| |||||||
Health Care—27.4% | ||||||||
2,947 | AAC Holdings, Inc.(b)(c) | 60,679 | ||||||
4,098 | Abaxis, Inc. | 185,721 | ||||||
4,164 | ABIOMED, Inc.(b) | 404,491 | ||||||
2,968 | Achillion Pharmaceuticals, Inc.(b) | 25,376 | ||||||
1,683 | Adeptus Health, Inc., Class A(b)(c) | 114,646 | ||||||
5,823 | Aerie Pharmaceuticals, Inc.(b) | 92,353 | ||||||
2,888 | Agile Therapeutics, Inc.(b) | 16,722 | ||||||
2,050 | Air Methods Corp.(b) | 75,809 | ||||||
669 | ANI Pharmaceuticals, Inc.(b) | 30,419 | ||||||
36,369 | Antares Pharma, Inc.(b)(c) | 40,006 | ||||||
29,923 | Arena Pharmaceuticals, Inc.(b) | 51,468 | ||||||
14,683 | ARIAD Pharmaceuticals, Inc.(b) | 105,424 | ||||||
5,307 | BioSpecifics Technologies Corp.(b) | 188,717 | ||||||
2,910 | Cambrex Corp.(b) | 140,378 | ||||||
3,037 | Castlight Health, Inc., Class B(b) | 10,933 | ||||||
1,755 | Catalent, Inc.(b) | 51,825 | ||||||
655 | Cempra, Inc.(b) | 11,089 | ||||||
3,464 | Cepheid, Inc.(b) | 98,863 | ||||||
6,302 | Civitas Solutions, Inc.(b) | 126,292 | ||||||
9,635 | CorMedix, Inc.(b)(c) | 40,274 | ||||||
3,189 | CorVel Corp.(b) | 144,143 | ||||||
9,121 | Depomed, Inc.(b) | 158,523 | ||||||
105 | Enanta Pharmaceuticals, Inc.(b) | 3,066 | ||||||
4,495 | Endologix, Inc.(b) | 50,389 | ||||||
2,032 | Exact Sciences Corp.(b) | 14,265 | ||||||
6,085 | ExamWorks Group, Inc.(b) | 219,364 | ||||||
1,556 | Fluidigm Corp.(b) | 14,906 | ||||||
3,999 | Foamix Pharmaceuticals Ltd. (Israel)(b) | 25,234 | ||||||
5,294 | GenMark Diagnostics, Inc.(b) | 31,288 | ||||||
4,044 | Genomic Health, Inc.(b) | 106,276 | ||||||
7,048 | Halozyme Therapeutics, Inc.(b) | 74,356 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 60 |
|
PowerShares Russell 2000 Pure Growth Portfolio (PXSG) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Health Care (continued) | ||||||||
4,291 | HealthEquity, Inc.(b) | $ | 107,919 | |||||
568 | HealthStream, Inc.(b) | 12,848 | ||||||
1,423 | HeartWare International, Inc.(b) | 47,471 | ||||||
5,888 | ImmunoGen, Inc.(b) | 40,333 | ||||||
2,135 | Imprivata, Inc.(b) | 25,876 | ||||||
2,244 | INC Research Holdings, Inc., Class A(b) | 108,004 | ||||||
58 | Infinity Pharmaceuticals, Inc.(b) | 336 | ||||||
105 | Insulet Corp.(b) | 3,497 | ||||||
2,015 | Intra-Cellular Therapies, Inc.(b) | 69,155 | ||||||
4,031 | Ironwood Pharmaceuticals, Inc., Class A(b) | 42,124 | ||||||
994 | K2M Group Holdings, Inc.(b) | 16,162 | ||||||
2,576 | La Jolla Pharmaceutical Co.(b)(c) | 47,682 | ||||||
4,269 | Lannett Co., Inc.(b)(c) | 81,879 | ||||||
2,133 | Ligand Pharmaceuticals, Inc.(b)(c) | 257,816 | ||||||
2,279 | LivaNova PLC(b) | 120,172 | ||||||
1,823 | Masimo Corp.(b) | 79,027 | ||||||
3,475 | Medidata Solutions, Inc.(b) | 151,614 | ||||||
8,990 | MiMedx Group, Inc.(b)(c) | 67,695 | ||||||
2,568 | Molina Healthcare, Inc.(b) | 132,920 | ||||||
1,227 | Natus Medical, Inc.(b) | 39,105 | ||||||
10,324 | Nektar Therapeutics(b) | 161,880 | ||||||
3,098 | Neogen Corp.(b) | 146,350 | ||||||
44,000 | NeoGenomics, Inc.(b) | 358,160 | ||||||
883 | Nevro Corp.(b) | 59,382 | ||||||
3,509 | �� | NewLink Genetics Corp.(b)(c) | 56,881 | |||||
30,270 | Nobilis Health Corp.(b)(c) | 127,739 | ||||||
10,254 | Novavax, Inc.(b)(c) | 53,731 | ||||||
2,256 | NuVasive, Inc.(b) | 119,433 | ||||||
172 | NxStage Medical, Inc.(b) | 2,773 | ||||||
2,288 | Ocular Therapeutix, Inc.(b) | 28,097 | ||||||
16,886 | Orexigen Therapeutics, Inc.(b)(c) | 7,548 | ||||||
3,467 | Pacira Pharmaceuticals, Inc.(b) | 187,599 | ||||||
1,097 | Paratek Pharmaceuticals, Inc.(b) | 14,941 | ||||||
3,062 | PAREXEL International Corp.(b) | 187,088 | ||||||
16,714 | Pernix Therapeutics Holdings, Inc.(b)(c) | 12,537 | ||||||
329 | Portola Pharmaceuticals, Inc.(b) | 7,817 | ||||||
964 | Press Ganey Holdings, Inc.(b) | 29,373 | ||||||
823 | Providence Service Corp. (The)(b) | 41,018 | ||||||
1,153 | Radius Health, Inc.(b) | 41,047 | ||||||
5,956 | RadNet, Inc.(b) | 30,078 | ||||||
1,934 | Relypsa, Inc.(b) | 35,005 | ||||||
6,338 | Repligen Corp.(b) | 168,844 | ||||||
675 | Sagent Pharmaceuticals, Inc.(b) | 7,857 | ||||||
16,512 | Sequenom, Inc.(b)(c) | 21,135 | ||||||
1,177 | STAAR Surgical Co.(b) | 9,075 | ||||||
14,873 | Sucampo Pharmaceuticals, Inc., Class A(b) | 160,331 | ||||||
10,227 | Supernus Pharmaceuticals, Inc.(b) | 175,495 | ||||||
2,410 | T2 Biosystems, Inc.(b) | 22,100 | ||||||
3,249 | Tandem Diabetes Care, Inc.(b) | 36,161 | ||||||
1,624 | Team Health Holdings, Inc.(b) | 67,932 | ||||||
7,527 | Teligent, Inc.(b)(c) | 41,549 | ||||||
10,209 | TherapeuticsMD, Inc.(b) | 84,224 | ||||||
4,366 | Vascular Solutions, Inc.(b) | 152,592 | ||||||
13,729 | VIVUS, Inc.(b)(c) | 22,653 | ||||||
26,863 | XenoPort, Inc.(b) | 118,197 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Health Care (continued) | ||||||||
9,859 | Zeltiq Aesthetics, Inc.(b) | $ | 294,784 | |||||
5,410 | Zogenix, Inc.(b) | 55,453 | ||||||
|
| |||||||
7,311,789 | ||||||||
|
| |||||||
Industrials—14.2% | ||||||||
4,776 | AAON, Inc. | 126,660 | ||||||
4,296 | Advanced Drainage Systems, Inc.(c) | 99,324 | ||||||
1,487 | Allegiant Travel Co. | 238,768 | ||||||
3,760 | Allied Motion Technologies, Inc. | 81,028 | ||||||
3,077 | American Woodmark Corp.(b) | 224,129 | ||||||
471 | Apogee Enterprises, Inc. | 19,518 | ||||||
279 | Astronics Corp.(b) | 10,309 | ||||||
346 | AZZ, Inc. | 19,002 | ||||||
2,058 | Barrett Business Services, Inc. | 63,819 | ||||||
3,464 | BMC Stock Holdings, Inc.(b) | 60,793 | ||||||
21,841 | Builders FirstSource, Inc.(b) | 242,217 | ||||||
3,780 | Dycom Industries, Inc.(b) | 266,868 | ||||||
4,650 | Echo Global Logistics, Inc.(b) | 108,670 | ||||||
6,395 | Enphase Energy, Inc.(b)(c) | 16,051 | ||||||
922 | Forward Air Corp. | 42,025 | ||||||
230 | GP Strategies Corp.(b) | 5,368 | ||||||
1,327 | Greenbrier Cos., Inc. (The)(c) | 39,797 | ||||||
8,775 | Hawaiian Holdings, Inc.(b) | 369,164 | ||||||
7,393 | Healthcare Services Group, Inc. | 279,825 | ||||||
143 | Heartland Express, Inc. | 2,590 | ||||||
281 | HEICO Corp. | 17,228 | ||||||
1,549 | HNI Corp. | 67,722 | ||||||
2,949 | Insperity, Inc. | 155,619 | ||||||
7,989 | Kforce, Inc. | 151,871 | ||||||
1,341 | Knight Transportation, Inc. | 35,630 | ||||||
2,743 | Multi-Color Corp. | 164,114 | ||||||
668 | Nortek, Inc.(b) | 31,503 | ||||||
1,765 | NV5 Global, Inc.(b)(c) | 43,825 | ||||||
1,639 | On Assignment, Inc.(b) | 59,102 | ||||||
1,488 | P.A.M. Transportation Services, Inc.(b) | 36,768 | ||||||
3,994 | Patrick Industries, Inc.(b) | 183,125 | ||||||
19,414 | PGT, Inc.(b) | 203,265 | ||||||
2,017 | Power Solutions International, Inc.(b)(c) | 26,120 | ||||||
2,104 | Sun Hydraulics Corp. | 74,440 | ||||||
4,305 | Swift Transportation Co., Class A(b) | 71,549 | ||||||
3,925 | TASER International, Inc.(b) | 71,670 | ||||||
1,161 | Trex Co., Inc.(b) | 55,089 | ||||||
664 | WageWorks, Inc.(b) | 35,763 | ||||||
|
| |||||||
3,800,328 | ||||||||
|
| |||||||
Information Technology—31.3% | ||||||||
6,541 | ACI Worldwide, Inc.(b) | 130,755 | ||||||
146 | Ambarella, Inc.(b) | 6,001 | ||||||
9,159 | Angie’s List, Inc.(b) | 80,141 | ||||||
1,844 | Apigee Corp.(b) | 17,887 | ||||||
3,023 | Aspen Technology, Inc.(b) | 114,965 | ||||||
2,470 | AVG Technologies NV(b) | 48,906 | ||||||
1,444 | Belden, Inc. | 91,174 | ||||||
121 | Benefitfocus, Inc.(b) | 4,586 | ||||||
2,720 | Blackbaud, Inc. | 168,014 | ||||||
1,253 | Box, Inc., Class A(b)(c) | 16,201 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 61 |
|
PowerShares Russell 2000 Pure Growth Portfolio (PXSG) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Information Technology (continued) | ||||||||
4,597 | BroadSoft, Inc.(b) | $ | 180,041 | |||||
10,340 | CalAmp Corp.(b) | 154,790 | ||||||
3,272 | Callidus Software, Inc.(b) | 59,878 | ||||||
1,424 | Carbonite, Inc.(b) | 10,737 | ||||||
1,023 | Cardtronics, Inc.(b) | 40,327 | ||||||
3,796 | Cavium, Inc.(b) | 187,408 | ||||||
1,395 | Cimpress NV (Netherlands)(b) | 122,579 | ||||||
15,153 | Clearfield, Inc.(b)(c) | 281,240 | ||||||
1,986 | CommVault Systems, Inc.(b) | 86,927 | ||||||
1,732 | comScore, Inc.(b) | 53,034 | ||||||
1,367 | Cornerstone OnDemand, Inc.(b) | 46,956 | ||||||
2,562 | Demandware, Inc.(b) | 118,057 | ||||||
16,612 | EarthLink Holdings Corp. | 96,516 | ||||||
4,011 | Eastman Kodak Co.(b)(c) | 47,410 | ||||||
1,841 | Ellie Mae, Inc.(b) | 153,908 | ||||||
5,273 | Endurance International Group Holdings, Inc.(b)(c) | 56,474 | ||||||
5,904 | Envestnet, Inc.(b) | 185,268 | ||||||
2,612 | EPAM Systems, Inc.(b) | 190,493 | ||||||
1,898 | Fair Isaac Corp. | 202,536 | ||||||
511 | FEI Co. | 45,489 | ||||||
4,176 | Five9, Inc.(b) | 38,628 | ||||||
3,353 | Fleetmatics Group PLC(b) | 121,546 | ||||||
2,510 | Forrester Research, Inc. | 84,386 | ||||||
4,091 | Gigamon, Inc.(b) | 133,326 | ||||||
2,000 | Globant SA(b) | 70,980 | ||||||
3,024 | GrubHub, Inc.(b)(c) | 79,289 | ||||||
5,375 | GTT Communications, Inc.(b) | 85,892 | ||||||
6,191 | Hackett Group, Inc. (The) | 92,122 | ||||||
728 | Hortonworks, Inc.(b) | 8,423 | ||||||
495 | HubSpot, Inc.(b) | 21,924 | ||||||
16,719 | Immersion Corp.(b) | 122,216 | ||||||
241 | Imperva, Inc.(b) | 11,202 | ||||||
6,044 | Infinera Corp.(b) | 71,863 | ||||||
5,151 | Inphi Corp.(b) | 152,830 | ||||||
345 | InvenSense, Inc.(b) | 2,650 | ||||||
517 | j2 Global, Inc. | 32,840 | ||||||
2,568 | Jive Software, Inc.(b) | 10,452 | ||||||
3,743 | Lionbridge Technologies, Inc.(b) | 18,678 | ||||||
4,146 | LogMeIn, Inc.(b) | 247,516 | ||||||
1,656 | Luxoft Holding, Inc., Class A(b) | 95,733 | ||||||
1,825 | M/A-Com Technology Solutions Holdings, Inc.(b) | 74,624 | ||||||
1,763 | Manhattan Associates, Inc.(b) | 106,732 | ||||||
14 | Marketo, Inc.(b) | 308 | ||||||
45,206 | Mattson Technology, Inc.(b) | 165,002 | ||||||
1,934 | MAXIMUS, Inc. | 102,309 | ||||||
22,920 | MaxLinear, Inc., Class A(b) | 383,910 | ||||||
2,914 | Methode Electronics, Inc. | 86,633 | ||||||
889 | Microsemi Corp.(b) | 30,039 | ||||||
662 | MicroStrategy, Inc., Class A(b) | 118,710 | ||||||
625 | New Relic, Inc.(b)(c) | 16,112 | ||||||
1,018 | NIC, Inc. | 18,029 | ||||||
1,202 | Nimble Storage, Inc.(b) | 8,871 | ||||||
1,422 | OPOWER,Inc.(b)(c) | 11,234 | ||||||
4,636 | Paycom Software, Inc.(b) | 177,142 | ||||||
1,035 | Paylocity Holding Corp.(b) | 39,609 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Information Technology (continued) | ||||||||
2,629 | Pegasystems, Inc. | $ | 69,379 | |||||
216 | Proofpoint, Inc.(b) | 12,584 | ||||||
4,253 | PROS Holdings, Inc.(b) | 50,015 | ||||||
960 | Q2 Holdings, Inc.(b) | 22,954 | ||||||
5,014 | Qlik Technologies, Inc.(b) | 154,381 | ||||||
2,485 | Qualys, Inc.(b) | 62,572 | ||||||
5,115 | Quotient Technology, Inc.(b)(c) | 59,436 | ||||||
1,894 | Rambus, Inc.(b) | 22,008 | ||||||
9,922 | RealPage, Inc.(b) | 218,185 | ||||||
1,400 | RingCentral, Inc., Class A(b) | 26,712 | ||||||
8,206 | Rubicon Project, Inc. (The)(b) | 158,950 | ||||||
2,393 | SPS Commerce, Inc.(b) | 121,875 | ||||||
1,330 | Stamps.com, Inc.(b) | 109,539 | ||||||
2,286 | Synaptics, Inc.(b) | 163,563 | ||||||
3,026 | Synchronoss Technologies, Inc.(b) | 94,018 | ||||||
2,557 | Tangoe, Inc.(b) | 22,553 | ||||||
15,208 | TiVo, Inc.(b) | 151,776 | ||||||
1 | TrueCar, Inc.(b) | 7 | ||||||
1,386 | Tyler Technologies, Inc.(b) | 202,924 | ||||||
2,394 | Universal Display Corp.(b) | 139,594 | ||||||
839 | Varonis Systems, Inc.(b) | 16,067 | ||||||
4,992 | VASCO Data Security International, Inc.(b) | 86,511 | ||||||
931 | Violin Memory, Inc.(b) | 329 | ||||||
1,571 | Virtusa Corp.(b) | 55,833 | ||||||
68 | Web.com Group, Inc.(b) | 1,359 | ||||||
4,455 | WebMD Health Corp.(b) | 279,507 | ||||||
108 | Wix.com Ltd. (Israel)(b) | 2,670 | ||||||
1,866 | Workiva, Inc., Class A(b) | 22,224 | ||||||
859 | Zendesk, Inc.(b) | 19,413 | ||||||
44,625 | Zix Corp.(b) | 166,451 | ||||||
|
| |||||||
8,353,847 | ||||||||
|
| |||||||
Materials—3.0% | ||||||||
2,056 | Balchem Corp. | 126,156 | ||||||
126 | Deltic Timber Corp. | 7,875 | ||||||
10,499 | Ferroglobal PLC | 106,985 | ||||||
2,220 | Koppers Holdings, Inc.(b) | 55,789 | ||||||
4,993 | PolyOne Corp. | 179,648 | ||||||
3,437 | Summit Materials, Inc., Class A(b) | 71,833 | ||||||
3,276 | Trinseo SA(b) | 140,180 | ||||||
2,015 | US Concrete, Inc.(b) | 124,447 | ||||||
|
| |||||||
812,913 | ||||||||
|
| |||||||
Telecommunication Services—1.3% | ||||||||
5,637 | Cogent Communications Group, Inc. | 218,152 | ||||||
931 | FairPoint Communications, Inc.(b) | 12,345 | ||||||
6,339 | General Communication, Inc., Class A(b) | 107,129 | ||||||
|
| |||||||
337,626 | ||||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $29,699,724) | 26,711,853 | |||||||
|
| |||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 62 |
|
PowerShares Russell 2000 Pure Growth Portfolio (PXSG) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Money Market Fund—0.1% | ||||||||
36,963 | Invesco Premier Portfolio—Institutional Class, 0.39%(d) (Cost $36,963) | $ | 36,963 | |||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $29,736,687)—100.1% | 26,748,816 | |||||||
|
| |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—7.8% | ||||||||
2,079,497 | Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(d)(e) (Cost $2,079,497) | 2,079,497 | ||||||
|
| |||||||
Total Investments (Cost $31,816,184)—107.9% | 28,828,313 | |||||||
Other assets less liabilities—(7.9)% | (2,109,078 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 26,719,235 | ||||||
|
|
Investment Abbreviations:
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | Non-income producing security. |
(c) | All or a portion of this security was out on loan at April 30, 2016. |
(d) | The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
(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. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 63 |
|
Schedule of Investments(a)
PowerShares Russell 2000 Pure Value Portfolio (PXSV)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—99.9% | ||||||||
Consumer Discretionary—5.2% | ||||||||
25,563 | Apollo Education Group, Inc., Class A(b) | $ | 199,391 | |||||
2,370 | Ascent Capital Group, Inc., Series A(b) | 35,716 | ||||||
4,155 | Barnes & Noble Education, Inc.(b) | 38,891 | ||||||
6,525 | Barnes & Noble, Inc. | 76,669 | ||||||
122,057 | bebe stores, Inc.(b)(c) | 68,694 | ||||||
89,633 | Career Education Corp.(b) | 478,640 | ||||||
12,895 | DeVry Education Group, Inc.(c) | 223,728 | ||||||
1,276 | FTD Cos., Inc.(b) | 35,486 | ||||||
18,317 | Guess?, Inc. | 336,117 | ||||||
17,471 | Harte-Hanks, Inc. | 31,797 | ||||||
88 | Haverty Furniture Cos., Inc. | 1,643 | ||||||
7,991 | International Speedway Corp., Class A | 267,619 | ||||||
9,739 | New Media Investment Group, Inc. | 156,311 | ||||||
19,713 | Regis Corp.(b) | 269,477 | ||||||
13,421 | Ruby Tuesday, Inc.(b) | 59,052 | ||||||
1,741 | Scholastic Corp. | 63,338 | ||||||
19,358 | Speedway Motorsports, Inc. | 339,152 | ||||||
2,978 | Stage Stores, Inc.(c) | 21,918 | ||||||
4,839 | Stein Mart, Inc. | 35,034 | ||||||
7,643 | Taylor Morrison Home Corp., Class A(b) | 110,059 | ||||||
17,404 | Time, Inc. | 255,839 | ||||||
|
| |||||||
3,104,571 | ||||||||
|
| |||||||
Consumer Staples—0.3% | ||||||||
1,373 | Fresh Del Monte Produce, Inc. | 59,396 | ||||||
2,575 | Universal Corp. | 140,466 | ||||||
190 | Weis Markets, Inc. | 8,649 | ||||||
|
| |||||||
208,511 | ||||||||
|
| |||||||
Energy—10.2% | ||||||||
12,923 | Archrock, Inc. | 127,292 | ||||||
3,565 | Ardmore Shipping Corp. (Ireland) | 33,333 | ||||||
58,527 | Bill Barrett Corp.(b)(c) | 465,875 | ||||||
68,075 | Callon Petroleum Co.(b) | 715,468 | ||||||
1,045 | CARBO Ceramics, Inc.(c) | 15,518 | ||||||
825 | Clayton Williams Energy, Inc.(b)(c) | 14,957 | ||||||
92,063 | Cloud Peak Energy, Inc.(b)(c) | 203,459 | ||||||
33,188 | Contango Oil & Gas Co.(b) | 417,505 | ||||||
9,860 | DHT Holdings, Inc. | 56,596 | ||||||
10,269 | Eclipse Resources Corp.(b)(c) | 24,954 | ||||||
5,860 | Era Group, Inc.(b) | 55,846 | ||||||
44,299 | EXCO Resources, Inc.(b)(c) | 67,334 | ||||||
6,488 | Exterran Corp.(b) | 99,266 | ||||||
8,869 | Forum Energy Technologies, Inc.(b) | 148,467 | ||||||
7,375 | Frontline Ltd. (Norway)(c) | 60,770 | ||||||
29,760 | Gastar Exploration, Inc.(b) | 59,222 | ||||||
8,880 | Geospace Technologies Corp.(b) | 145,277 | ||||||
17,356 | Gulfmark Offshore, Inc., Class A(b)(c) | 117,674 | ||||||
103,223 | Halcon Resources Corp.(b)(c) | 125,932 | ||||||
34,001 | Helix Energy Solutions Group, Inc.(b) | 293,429 | ||||||
17,209 | Hornbeck Offshore Services, Inc.(b)(c) | 202,034 | ||||||
9,348 | Jones Energy, Inc., Class A(b) | 44,870 | ||||||
155,542 | Key Energy Services, Inc.(b)(c) | 82,266 | ||||||
86,169 | McDermott International, Inc.(b) | 391,207 | ||||||
16,530 | North Atlantic Drilling Ltd. (Norway)(b)(c) | 62,483 | ||||||
9,706 | Oil States International, Inc.(b) | 336,216 | ||||||
42,661 | Pacific Ethanol, Inc.(b)(c) | 201,787 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Energy (continued) | ||||||||
95,484 | Parker Drilling Co.(b) | $ | 292,181 | |||||
62 | PDC Energy, Inc.(b) | 3,893 | ||||||
3,149 | Scorpio Tankers, Inc. (Monaco) | 19,713 | ||||||
33,455 | Seventy Seven Energy, Inc.(b) | 6,380 | ||||||
30,109 | Ship Finance International Ltd. (Norway)(c) | 456,754 | ||||||
35,763 | Stone Energy Corp.(b)(c) | 35,051 | ||||||
12,468 | Tesco Corp. | 117,947 | ||||||
59,733 | TETRA Technologies, Inc.(b) | 430,078 | ||||||
7,537 | Tidewater, Inc. | 66,024 | ||||||
36,502 | W&T Offshore, Inc.(b)(c) | 87,970 | ||||||
|
| |||||||
6,085,028 | ||||||||
|
| |||||||
Financials—56.6% | ||||||||
7,762 | 1st Source Corp. | 267,323 | ||||||
16,314 | AG Mortgage Investment Trust, Inc. REIT | 218,444 | ||||||
5,228 | Agree Realty Corp. REIT | 202,742 | ||||||
17,580 | American Capital Mortgage Investment Corp. REIT | 260,711 | ||||||
4,072 | American Equity Investment Life Holding Co. | 57,008 | ||||||
14,523 | Apollo Commercial Real Estate Finance, Inc. REIT | 231,351 | ||||||
7,082 | Apollo Residential Mortgage, Inc. REIT | 96,032 | ||||||
1,176 | Argo Group International Holdings Ltd. | 64,645 | ||||||
12,327 | Arlington Asset Investment Corp., Class A(c) | 159,511 | ||||||
13,208 | Armada Hoffler Properties, Inc. REIT | 154,534 | ||||||
9,113 | ARMOUR Residential REIT, Inc. REIT | 193,925 | ||||||
26,204 | Astoria Financial Corp. | 394,108 | ||||||
1,913 | BancFirst Corp. | 119,314 | ||||||
2,174 | Banco Latinoamericano de Comercio Exterior SA, Class E (Panama) | 56,220 | ||||||
13,296 | Bancorp, Inc. (The)(b) | 75,388 | ||||||
16,026 | BankFinancial Corp. | 198,081 | ||||||
4,695 | Banner Corp. | 200,852 | ||||||
18,733 | BBCN Bancorp, Inc. | 292,609 | ||||||
20,475 | Beneficial Bancorp, Inc.(b) | 284,398 | ||||||
7,167 | Berkshire Hills Bancorp, Inc. | 194,512 | ||||||
9,269 | Blue Hills Bancorp, Inc. | 135,142 | ||||||
12,714 | Bluerock Residential Growth REIT, Inc., Class A REIT(c) | 139,091 | ||||||
3,641 | Boston Private Financial Holdings, Inc. | 44,493 | ||||||
7,251 | Bryn Mawr Bank Corp. | 206,073 | ||||||
29,164 | Calamos Asset Management, Inc., Class A | 240,311 | ||||||
24,745 | Capitol Federal Financial, Inc. | 328,861 | ||||||
32,399 | Capstead Mortgage Corp. REIT | 314,918 | ||||||
14,424 | Cash America International, Inc. | 533,111 | ||||||
17,462 | CatchMark Timber Trust, Inc., Class A REIT | 185,272 | ||||||
3,497 | Cathay General Bancorp | 106,728 | ||||||
7,334 | Cedar Realty Trust, Inc. REIT | 50,751 | ||||||
3,469 | Centerstate Banks, Inc. | 56,510 | ||||||
3,725 | Central Pacific Financial Corp. | 86,942 | ||||||
8,878 | Chatham Lodging Trust REIT | 189,190 | ||||||
6,418 | Chemical Financial Corp. | 246,836 | ||||||
4,310 | City Holding Co. | 211,707 | ||||||
10,148 | Clifton Bancorp, Inc. | 151,002 | ||||||
20,793 | CoBiz Financial, Inc. | 251,803 | ||||||
5,759 | Colony Capital, Inc., Class A REIT | 101,819 | ||||||
6,505 | Colony Starwood Homes REIT | 158,527 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 64 |
|
PowerShares Russell 2000 Pure Value Portfolio (PXSV) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
1,695 | Columbia Banking System, Inc. | $ | 49,986 | |||||
3,293 | Community Bank System, Inc. | 130,304 | ||||||
6,196 | Community Trust Bancorp, Inc. | 222,251 | ||||||
28,035 | Cousins Properties, Inc. REIT | 290,162 | ||||||
7,525 | CVB Financial Corp. | 129,280 | ||||||
43,372 | CYS Investments, Inc. REIT | 351,747 | ||||||
8,748 | DCT Industrial Trust, Inc. REIT | 353,157 | ||||||
23,022 | DiamondRock Hospitality Co. REIT | 205,126 | ||||||
21,684 | Dime Community Bancshares, Inc. | 392,697 | ||||||
37,818 | Dynex Capital, Inc. REIT | 245,817 | ||||||
7,200 | Education Realty Trust, Inc. REIT | 286,344 | ||||||
15,986 | Enterprise Financial Services Corp. | 437,537 | ||||||
4,209 | EPR Properties REIT | 277,289 | ||||||
2,907 | EverBank Financial Corp. | 43,838 | ||||||
20,765 | EZCORP, Inc., Class A(b) | 102,787 | ||||||
20,725 | F.N.B. Corp. | 273,985 | ||||||
4,930 | FBL Financial Group, Inc., Class A | 298,117 | ||||||
7,956 | Federal Agricultural Mortgage Corp., Class C | 323,650 | ||||||
3,753 | Fidelity & Guaranty Life(c) | 99,229 | ||||||
14,086 | Fidelity Southern Corp. | 227,630 | ||||||
1,189 | First American Financial Corp. | 42,828 | ||||||
30,856 | First BanCorp(b) | 120,338 | ||||||
10,721 | First Busey Corp. | 219,137 | ||||||
315 | First Citizens BancShares, Inc., Class A | 80,325 | ||||||
7,613 | First Defiance Financial Corp. | 301,323 | ||||||
9,678 | First Financial Bancorp | 188,721 | ||||||
5,422 | First Financial Corp. | 192,101 | ||||||
3,094 | First Industrial Realty Trust, Inc. REIT | 70,976 | ||||||
5,028 | First Interstate BancSystem, Inc., Class A | 136,259 | ||||||
16,123 | First Merchants Corp. | 413,555 | ||||||
807 | First Midwest Bancorp, Inc. | 14,913 | ||||||
721 | First NBC Bank Holding Co.(b) | 15,675 | ||||||
24,802 | First Potomac Realty Trust REIT | 208,585 | ||||||
8,676 | FirstMerit Corp. | 192,260 | ||||||
21,000 | Flagstar Bancorp, Inc.(b) | 497,070 | ||||||
18,013 | Flushing Financial Corp. | 359,359 | ||||||
25,319 | Fulton Financial Corp. | 354,213 | ||||||
146 | Getty Realty Corp. REIT | 2,873 | ||||||
823 | Glacier Bancorp, Inc. | 21,307 | ||||||
6,205 | Gladstone Commercial Corp. REIT | 104,430 | ||||||
5,822 | Government Properties Income Trust REIT | 110,152 | ||||||
75,945 | Gramercy Property Trust REIT | 643,254 | ||||||
9,606 | Great Ajax Corp. REIT | 130,834 | ||||||
7,027 | Great Southern Bancorp, Inc. | 266,042 | ||||||
12,626 | Great Western Bancorp, Inc. | 397,972 | ||||||
1,335 | Green Dot Corp., Class A(b) | 29,677 | ||||||
5,419 | Guaranty Bancorp | 88,980 | ||||||
11,053 | Hancock Holding Co. | 287,046 | ||||||
9,868 | Hanmi Financial Corp. | 228,148 | ||||||
1,768 | Heartland Financial USA, Inc. | 59,246 | ||||||
12,005 | Hersha Hospitality Trust REIT | 231,576 | ||||||
12,910 | HomeTrust Bancshares, Inc.(b) | 239,481 | ||||||
5,991 | Horace Mann Educators Corp. | 186,320 | ||||||
243 | Hudson Pacific Properties, Inc. REIT | 7,108 | ||||||
454 | IBERIABANK Corp. | 26,781 | ||||||
42,592 | Independence Realty Trust, Inc. REIT | 305,385 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
5,042 | Independent Bank Corp./MA | $ | 237,125 | |||||
18,926 | Independent Bank Corp./MI | 286,729 | ||||||
7,725 | International Bancshares Corp. | 202,318 | ||||||
20,075 | Invesco Mortgage Capital, Inc. REIT(d) | 257,964 | ||||||
14,871 | Investors Real Estate Trust REIT | 89,523 | ||||||
23,564 | iStar, Inc. REIT(b) | 230,927 | ||||||
3,947 | James River Group Holdings Ltd. | 122,199 | ||||||
11,944 | JG Wentworth Co. (The), Class A(b)(c) | 13,736 | ||||||
2,336 | Kite Realty Group Trust REIT | 63,609 | ||||||
28,457 | Lakeland Bancorp, Inc. | 315,588 | ||||||
1,845 | Lakeland Financial Corp. | 87,250 | ||||||
2,979 | LaSalle Hotel Properties REIT | 71,198 | ||||||
16,749 | Lexington Realty Trust REIT | 147,056 | ||||||
11,669 | Mack-Cali Realty Corp. REIT | 298,260 | ||||||
10,831 | MainSource Financial Group, Inc. | 236,657 | ||||||
14,417 | MBIA, Inc.(b) | 112,453 | ||||||
4,492 | Mercantile Bank Corp. | 108,347 | ||||||
9,105 | Monmouth Real Estate Investment Corp. REIT | 104,708 | ||||||
17,220 | Monogram Residential Trust, Inc. REIT | 174,439 | ||||||
553 | National Western Life Group, Inc., Class A | 119,835 | ||||||
1,976 | Nationstar Mortgage Holdings, Inc.(b)(c) | 22,902 | ||||||
184 | Navigators Group, Inc. (The)(b) | 15,200 | ||||||
14,032 | NBT Bancorp, Inc. | 397,667 | ||||||
3,419 | Nelnet, Inc., Class A | 143,290 | ||||||
10,823 | NexPoint Residential Trust, Inc. REIT | 152,171 | ||||||
20,022 | Northwest Bancshares, Inc. | 280,708 | ||||||
21,555 | OFG Bancorp | 190,331 | ||||||
12,084 | Old National Bancorp | 161,926 | ||||||
14,089 | One Liberty Properties, Inc. REIT | 329,964 | ||||||
4,693 | Oppenheimer Holdings, Inc., Class A | 71,709 | ||||||
19,292 | Orchid Island Capital, Inc. REIT(c) | 186,747 | ||||||
6,503 | Pacific Continental Corp. | 108,340 | ||||||
324 | Park National Corp. | 29,743 | ||||||
656 | Parkway Properties, Inc. REIT | 10,791 | ||||||
17,685 | PennyMac Mortgage Investment Trust REIT | 240,339 | ||||||
3,545 | Peoples Bancorp, Inc. | 76,182 | ||||||
15,717 | PHH Corp.(b) | 201,649 | ||||||
4,273 | Piper Jaffray Cos.(b) | 178,227 | ||||||
16,657 | Preferred Apartment Communities, Inc., Class A REIT | 205,547 | ||||||
4,776 | Prosperity Bancshares, Inc. | 252,030 | ||||||
15,508 | Provident Financial Services, Inc. | 309,850 | ||||||
13,976 | QCR Holdings, Inc. | 360,162 | ||||||
18,039 | Radian Group, Inc. | 230,719 | ||||||
52,540 | RAIT Financial Trust REIT | 159,722 | ||||||
12,681 | Ramco-Gershenson Properties Trust REIT | 224,581 | ||||||
459 | Redwood Trust, Inc. REIT | 5,949 | ||||||
1,787 | Resource Capital Corp. REIT(c) | 21,230 | ||||||
7,050 | Retail Opportunity Investments Corp. REIT | 138,674 | ||||||
11,843 | Rexford Industrial Realty, Inc. REIT | 222,293 | ||||||
300 | RMR Group, Inc. (The), Class A | 7,476 | ||||||
6,432 | S&T Bancorp, Inc. | 165,109 | ||||||
18 | Safety Insurance Group, Inc. | 1,019 | ||||||
6,228 | Sandy Spring Bancorp, Inc. | 178,059 | ||||||
13,856 | Select Income REIT | 320,766 | ||||||
4,552 | Selective Insurance Group, Inc. | 158,000 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 65 |
|
PowerShares Russell 2000 Pure Value Portfolio (PXSV) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
5,201 | Silver Bay Realty Trust Corp. REIT | $ | 75,935 | |||||
9,422 | Southside Bancshares, Inc. | 275,217 | ||||||
2,292 | Stock Yards Bancorp, Inc. | 92,689 | ||||||
7,452 | STORE Capital Corp. REIT | 191,293 | ||||||
6,025 | Summit Hotel Properties, Inc. REIT | 68,685 | ||||||
6,503 | Talmer Bancorp, Inc., Class A | 126,158 | ||||||
115 | Tejon Ranch Co.(b) | 2,590 | ||||||
2,864 | Terreno Realty Corp. REIT | 65,213 | ||||||
4,009 | Tompkins Financial Corp. | 261,948 | ||||||
5,392 | TowneBank | 113,232 | ||||||
10,081 | TriCo Bancshares | 271,381 | ||||||
27,504 | Triumph Bancorp, Inc.(b) | 437,039 | ||||||
13,369 | TrustCo Bank Corp. NY | 85,695 | ||||||
7,610 | Trustmark Corp. | 186,521 | ||||||
4,363 | Umpqua Holdings Corp. | 69,066 | ||||||
9,067 | Union Bankshares Corp. | 239,459 | ||||||
5,786 | United Bankshares, Inc.(c) | 223,860 | ||||||
1,050 | United Community Banks, Inc. | 21,137 | ||||||
48,033 | United Community Financial Corp. | 285,316 | ||||||
11,956 | United Development Funding IV REIT(c) | 38,259 | ||||||
35,522 | Valley National Bancorp | 336,038 | ||||||
15,387 | Washington Federal, Inc. | 373,750 | ||||||
6,568 | Washington Trust Bancorp, Inc. | 240,586 | ||||||
8,823 | Webster Financial Corp. | 323,275 | ||||||
8,994 | WesBanco, Inc. | 288,977 | ||||||
486 | Westamerica Bancorp.(c) | 23,678 | ||||||
20,648 | Western Asset Mortgage Capital Corp. REIT(c) | 205,861 | ||||||
23,234 | Whitestone REIT | 312,033 | ||||||
1,561 | Wintrust Financial Corp. | 81,203 | ||||||
13,056 | WSFS Financial Corp. | 445,732 | ||||||
|
| |||||||
33,776,797 | ||||||||
|
| |||||||
Health Care—1.2% | ||||||||
38,821 | BioScrip, Inc.(b)(c) | 102,487 | ||||||
18,045 | Endocyte, Inc.(b) | 70,376 | ||||||
108,031 | Five Star Quality Care, Inc.(b) | 263,596 | ||||||
2,969 | Halyard Health, Inc.(b) | 83,607 | ||||||
10,027 | Invacare Corp. | 112,703 | ||||||
3,505 | Kindred Healthcare, Inc. | 51,734 | ||||||
225 | PharMerica Corp.(b) | 5,319 | ||||||
|
| |||||||
689,822 | ||||||||
|
| |||||||
Industrials—7.1% | ||||||||
11,160 | AAR Corp. | 268,286 | ||||||
61,307 | ACCO Brands Corp.(b) | 584,869 | ||||||
12,624 | Aerovironment, Inc.(b) | 364,581 | ||||||
10,834 | Air Transport Services Group, Inc.(b) | 152,651 | ||||||
3,342 | Aircastle Ltd. | 72,521 | ||||||
3,275 | Brady Corp., Class A | 86,755 | ||||||
716 | CIRCOR International, Inc. | 40,418 | ||||||
55,012 | Civeo Corp.(b) | 83,618 | ||||||
2,529 | Columbus McKinnon Corp. | 41,754 | ||||||
2,591 | Cubic Corp. | 107,708 | ||||||
15,392 | Eagle Bulk Shipping, Inc.(b)(c) | 12,694 | ||||||
4,951 | Ennis, Inc. | 96,743 | ||||||
8,438 | ESCO Technologies, Inc. | 324,694 | ||||||
32,782 | Golden Ocean Group Ltd. (Norway)(b) | 28,422 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Industrials (continued) | ||||||||
10,271 | Mercury Systems, Inc.(b) | $ | 215,896 | |||||
17,395 | MRC Global, Inc.(b) | 243,182 | ||||||
14,390 | Navigant Consulting, Inc.(b) | 229,664 | ||||||
23,192 | Navios Maritime Holdings, Inc. (Monaco)(c) | 27,135 | ||||||
4,321 | Northwest Pipe Co.(b) | 46,624 | ||||||
9,912 | Powell Industries, Inc. | 308,462 | ||||||
145,504 | Safe Bulkers, Inc. (Greece)(c) | 180,425 | ||||||
7,766 | Tetra Tech, Inc. | 228,320 | ||||||
3,703 | Veritiv Corp.(b) | 151,897 | ||||||
1,412 | Viad Corp. | 42,007 | ||||||
4,566 | VSE Corp. | 283,275 | ||||||
|
| |||||||
4,222,601 | ||||||||
|
| |||||||
Information Technology—7.5% | ||||||||
15,387 | Acxiom Corp.(b) | 338,052 | ||||||
3,729 | ADTRAN, Inc. | 72,044 | ||||||
66,325 | Amkor Technology, Inc.(b) | 378,716 | ||||||
24,882 | AVX Corp. | 328,940 | ||||||
9,891 | Black Box Corp. | 144,606 | ||||||
48,635 | Checkpoint Systems, Inc.(b) | 492,186 | ||||||
8,519 | Cohu, Inc. | 98,480 | ||||||
4,346 | Comtech Telecommunications Corp. | 105,173 | ||||||
18,871 | EMCORE Corp.(b) | 107,565 | ||||||
5,924 | Fabrinet (Thailand)(b) | 189,390 | ||||||
12,007 | ManTech International Corp., Class A | 405,837 | ||||||
980 | MKS Instruments, Inc. | 35,143 | ||||||
1,289 | MoneyGram International, Inc.(b) | 7,927 | ||||||
419 | Multi-Fineline Electronix, Inc.(b) | 9,637 | ||||||
61,185 | Oclaro, Inc.(b)(c) | 308,984 | ||||||
1,239 | Photronics, Inc.(b) | 13,109 | ||||||
6,203 | QLogic Corp.(b) | 81,197 | ||||||
15,706 | QuinStreet, Inc.(b) | 55,285 | ||||||
15,131 | Sanmina Corp.(b) | 357,848 | ||||||
75,990 | SeaChange International, Inc.(b) | 283,443 | ||||||
18,033 | Sonus Networks, Inc.(b) | 148,953 | ||||||
2,195 | TTM Technologies, Inc.(b) | 14,311 | ||||||
65,208 | Ultra Clean Holdings, Inc.(b) | 371,034 | ||||||
12,031 | Vishay Intertechnology, Inc. | 146,297 | ||||||
|
| |||||||
4,494,157 | ||||||||
|
| |||||||
Materials—0.1% | ||||||||
602 | Greif, Inc., Class A | 20,889 | ||||||
2,658 | TimkenSteel Corp. | 33,863 | ||||||
|
| |||||||
54,752 | ||||||||
|
| |||||||
Telecommunication Services—2.0% | ||||||||
1,647 | Atlantic Tele-Network, Inc. | 118,436 | ||||||
20,679 | Hawaiian Telcom Holdco, Inc.(b) | 476,237 | ||||||
16,867 | Iridium Communications, Inc.(b)(c) | 136,117 | ||||||
26,440 | Leap Wireless Corp.(b) | 66,629 | ||||||
22,247 | Spok Holdings, Inc. | 377,976 | ||||||
|
| |||||||
1,175,395 | ||||||||
|
| |||||||
Utilities—9.7% | ||||||||
2,427 | Abengoa Yield PLC (Spain)(c) | 43,759 | ||||||
7,703 | ALLETE, Inc. | 432,832 | ||||||
12,877 | Avista Corp. | 515,981 | ||||||
7,953 | Black Hills Corp. | 481,872 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 66 |
|
PowerShares Russell 2000 Pure Value Portfolio (PXSV) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Utilities (continued) | ||||||||
3,637 | California Water Service Group | $ | 101,581 | |||||
6,525 | Dynegy, Inc.(b) | 115,036 | ||||||
6,174 | El Paso Electric Co. | 278,447 | ||||||
12,792 | Empire District Electric Co. (The) | 430,707 | ||||||
3,294 | IDACORP, Inc. | 239,573 | ||||||
7,815 | Northwest Natural Gas Co. | 402,785 | ||||||
2,134 | NorthWestern Corp. | 121,297 | ||||||
9,377 | ONE Gas, Inc. | 548,273 | ||||||
3,003 | Otter Tail Corp. | 86,847 | ||||||
6,807 | PNM Resources, Inc. | 215,646 | ||||||
14,804 | Portland General Electric Co. | 588,015 | ||||||
1,237 | SJW Corp. | 42,565 | ||||||
8,373 | South Jersey Industries, Inc. | 233,690 | ||||||
1,367 | Southwest Gas Corp. | 88,732 | ||||||
6,792 | Spire, Inc. | 434,416 | ||||||
10,300 | Unitil Corp. | 407,056 | ||||||
|
| |||||||
5,809,110 | ||||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $64,842,813) | 59,620,744 | |||||||
|
| |||||||
Money Market Fund—0.1% | ||||||||
60,661 | Invesco Premier Portfolio—Institutional Class, 0.39%(e) (Cost $60,661) | 60,661 | ||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $64,903,474)—100.0% | 59,681,405 | |||||||
|
| |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—5.0% | ||||||||
2,983,531 | Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(e)(f) (Cost $2,983,531) | 2,983,531 | ||||||
|
| |||||||
Total Investments (Cost $67,887,005)—105.0% | 62,664,936 | |||||||
Other assets less liabilities—(5.0)% | (2,997,321 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 59,667,615 | ||||||
|
|
Investment Abbreviations:
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | Non-income producing security. |
(c) | All or a portion of this security was out on loan at April 30, 2016. |
(d) | Affiliated company. The Fund’s Adviser and Invesco Mortgage Capital, Inc. REIT are wholly-owned subsidiaries of Invesco Ltd. and therefore, Invesco Ltd. and Invesco Mortgage Capital, Inc. REIT are considered to be affiliated. See Note 4. |
(e) | The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
(f) | 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 accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 67 |
|
Schedule of Investments(a)
PowerShares Russell Midcap Equal Weight Portfolio (EQWM)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.0% | ||||||||
Consumer Discretionary—10.0% | ||||||||
707 | Aaron’s, Inc. | $ | 18,530 | |||||
107 | Advance Auto Parts, Inc. | 16,703 | ||||||
269 | AMC Networks, Inc., Class A(b) | 17,547 | ||||||
530 | Aramark | 17,760 | ||||||
366 | AutoNation, Inc.(b) | 18,538 | ||||||
23 | AutoZone, Inc.(b) | 17,600 | ||||||
351 | Bed Bath & Beyond, Inc.(b) | 16,574 | ||||||
550 | Best Buy Co., Inc. | 17,644 | ||||||
465 | BorgWarner, Inc. | 16,703 | ||||||
377 | Brinker International, Inc. | 17,463 | ||||||
366 | Brunswick Corp. | 17,579 | ||||||
366 | Cabela’s, Inc.(b) | 19,087 | ||||||
40 | Cable One, Inc. | 18,358 | ||||||
523 | Cablevision Systems Corp., Class A | 17,463 | ||||||
354 | CarMax, Inc.(b) | 18,744 | ||||||
167 | Carter’s, Inc. | 17,814 | ||||||
87 | Charter Communications, Inc., Class A(b) | 18,465 | ||||||
39 | Chipotle Mexican Grill, Inc.(b) | 16,418 | ||||||
332 | Choice Hotels International, Inc. | 16,819 | ||||||
483 | Cinemark Holdings, Inc. | 16,736 | ||||||
3,882 | Clear Channel Outdoor Holdings, Inc., Class A | 19,837 | ||||||
444 | Coach, Inc. | 17,880 | ||||||
451 | CST Brands, Inc. | 17,034 | ||||||
579 | D.R. Horton, Inc. | 17,405 | ||||||
259 | Darden Restaurants, Inc. | 16,123 | ||||||
239 | Delphi Automotive PLC (United Kingdom) | 17,598 | ||||||
366 | Dick’s Sporting Goods, Inc. | 16,960 | ||||||
205 | Dillard’s, Inc., Class A | 14,442 | ||||||
612 | Discovery Communications, Inc., Class A(b) | 16,714 | ||||||
200 | Dollar General Corp. | 16,382 | ||||||
213 | Dollar Tree, Inc.(b) | 16,978 | ||||||
134 | Domino’s Pizza, Inc. | 16,198 | ||||||
641 | DSW, Inc., Class A | 15,749 | ||||||
373 | Dunkin’ Brands Group, Inc. | 17,345 | ||||||
162 | Expedia, Inc., Class A | 18,755 | ||||||
1,098 | Extended Stay America, Inc. | 17,184 | ||||||
265 | Foot Locker, Inc. | 16,282 | ||||||
391 | Fossil Group, Inc.(b) | 15,836 | ||||||
574 | GameStop Corp., Class A | 18,827 | ||||||
595 | Gap, Inc. (The) | 13,792 | ||||||
442 | Garmin Ltd. | 18,842 | ||||||
1,119 | Gentex Corp. | 17,949 | ||||||
176 | Genuine Parts Co. | 16,891 | ||||||
2,365 | GNC Holdings, Inc., Class A | 57,611 | ||||||
540 | Goodyear Tire & Rubber Co. (The) | 15,644 | ||||||
1,502 | GoPro, Inc., Class A(b) | 18,985 | ||||||
36 | Graham Holdings Co., Class B | 17,155 | ||||||
6,959 | Groupon, Inc.(b) | 25,192 | ||||||
654 | H&R Block, Inc. | 13,237 | ||||||
610 | Hanesbrands, Inc. | 17,708 | ||||||
357 | Harley-Davidson, Inc. | 17,075 | ||||||
203 | Harman International Industries, Inc. | 15,582 | ||||||
222 | Hasbro, Inc. | 18,790 | ||||||
775 | Hilton Worldwide Holdings, Inc. | 17,089 | ||||||
366 | Hyatt Hotels Corp., Class A(b) | 17,524 | ||||||
963 | International Game Technology PLC | 16,698 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Consumer Discretionary (continued) | ||||||||
786 | Interpublic Group of Cos., Inc. (The) | $ | 18,031 | |||||
1,540 | J.C. Penney Co., Inc.(b) | 14,291 | ||||||
357 | John Wiley & Sons, Inc., Class A | 17,704 | ||||||
704 | Kate Spade & Co.(b) | 18,114 | ||||||
369 | Kohl’s Corp. | 16,347 | ||||||
199 | L Brands, Inc. | 15,580 | ||||||
157 | Lear Corp. | 18,075 | ||||||
363 | Leggett & Platt, Inc. | 17,892 | ||||||
370 | Lennar Corp., Class A | 16,765 | ||||||
46 | Liberty Braves Group, Class C(b) | 686 | ||||||
304 | Liberty Broadband Corp., Class C(b) | 17,404 | ||||||
697 | Liberty Interactive Corp. QVC Group, Series A(b) | 18,261 | ||||||
115 | Liberty Media Group, Class C(b) | 2,070 | ||||||
461 | Liberty SiriusXM Group, Class C(b) | 14,761 | ||||||
451 | Liberty Ventures, Series A(b) | 18,040 | ||||||
798 | Lions Gate Entertainment Corp. | 17,716 | ||||||
765 | Live Nation Entertainment, Inc.(b) | 16,432 | ||||||
564 | LKQ Corp.(b) | 18,076 | ||||||
285 | Lululemon Athletica, Inc.(b) | 18,682 | ||||||
390 | Macy’s, Inc. | 15,440 | ||||||
105 | Madison Square Garden Co. (The), Class A(b) | 16,483 | ||||||
430 | Marriott International, Inc., Class A | 30,139 | ||||||
534 | Mattel, Inc. | 16,602 | ||||||
845 | MGM Resorts International(b) | 17,999 | ||||||
307 | Michael Kors Holdings Ltd.(b) | 15,860 | ||||||
635 | Michaels Cos., Inc. (The)(b) | 18,053 | ||||||
91 | Mohawk Industries, Inc.(b) | 17,529 | ||||||
1,029 | MSG Networks, Inc., Class A(b) | 17,586 | ||||||
279 | Murphy USA, Inc.(b) | 16,020 | ||||||
663 | Newell Brands, Inc. | 30,193 | ||||||
1,344 | News Corp., Class A | 16,692 | ||||||
305 | Nordstrom, Inc. | 15,595 | ||||||
336 | Norwegian Cruise Line Holdings Ltd.(b) | 16,427 | ||||||
10 | NVR, Inc.(b) | 16,613 | ||||||
2,322 | Office Depot, Inc.(b) | 13,653 | ||||||
210 | Omnicom Group, Inc. | 17,424 | ||||||
68 | O’Reilly Automotive, Inc.(b) | 17,862 | ||||||
84 | Panera Bread Co., Class A(b) | 18,017 | ||||||
453 | Penske Automotive Group, Inc. | 17,726 | ||||||
175 | Polaris Industries, Inc. | 17,129 | ||||||
954 | PulteGroup, Inc. | 17,544 | ||||||
179 | PVH Corp. | 17,112 | ||||||
179 | Ralph Lauren Corp., Class A | 16,685 | ||||||
815 | Regal Entertainment Group, Class A | 16,993 | ||||||
300 | Ross Stores, Inc. | 17,034 | ||||||
229 | Royal Caribbean Cruises Ltd. | 17,725 | ||||||
539 | Sally Beauty Holdings, Inc.(b) | 16,925 | ||||||
267 | Scripps Networks Interactive, Inc., Class A | 16,647 | ||||||
1,170 | Sears Holdings Corp.(b) | 19,159 | ||||||
750 | Service Corp. International | 20,003 | ||||||
478 | ServiceMaster Global Holdings, Inc.(b) | 18,317 | ||||||
140 | Signet Jewelers Ltd. | 15,198 | ||||||
4,417 | Sirius XM Holdings, Inc.(b) | 17,447 | ||||||
315 | Six Flags Entertainment Corp. | 18,916 | ||||||
561 | Skechers U.S.A., Inc., Class A(b) | 18,541 | ||||||
1,585 | Staples, Inc. | 16,167 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 68 |
|
PowerShares Russell Midcap Equal Weight Portfolio (EQWM) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Consumer Discretionary (continued) | ||||||||
656 | Starz, Class A(b) | $ | 17,850 | |||||
735 | TEGNA, Inc. | 17,170 | ||||||
291 | Tempur Sealy International, Inc.(b) | 17,655 | ||||||
280 | Thor Industries, Inc. | 17,926 | ||||||
243 | Tiffany & Co. | 17,338 | ||||||
602 | Toll Brothers, Inc.(b) | 16,435 | ||||||
771 | TopBuild Corp.(b) | 24,071 | ||||||
193 | Tractor Supply Co. | 18,269 | ||||||
462 | Tribune Media Co., Class A | 17,810 | ||||||
276 | TripAdvisor, Inc., Class A(b) | 17,827 | ||||||
306 | Tupperware Brands Corp. | 17,769 | ||||||
97 | Ulta Salon, Cosmetics & Fragrance, Inc.(b) | 20,203 | ||||||
209 | Under Armour, Inc., Class A(b) | 9,183 | ||||||
209 | Under Armour, Inc., Class C(b) | 8,527 | ||||||
535 | Urban Outfitters, Inc.(b) | 16,221 | ||||||
337 | Vista Outdoor, Inc.(b) | 16,169 | ||||||
220 | Visteon Corp. | 17,527 | ||||||
1,627 | Wendy’s Co. (The) | 17,669 | ||||||
98 | Whirlpool Corp. | 17,066 | ||||||
318 | Williams-Sonoma, Inc. | 18,692 | ||||||
232 | Wyndham Worldwide Corp. | 16,460 | ||||||
186 | Wynn Resorts Ltd. | 16,424 | ||||||
|
| |||||||
2,340,481 | ||||||||
|
| |||||||
Consumer Staples—10.8% | ||||||||
3,722 | Avon Products, Inc. | 17,531 | ||||||
2,917 | Blue Buffalo Pet Products, Inc.(b) | 72,225 | ||||||
748 | Brown-Forman Corp., Class B | 72,047 | ||||||
1,285 | Bunge Ltd. | 80,313 | ||||||
1,138 | Campbell Soup Co. | 70,226 | ||||||
783 | Church & Dwight Co., Inc. | 72,584 | ||||||
565 | Clorox Co. (The) | 70,755 | ||||||
1,438 | Coca-Cola Enterprises, Inc. | 75,466 | ||||||
1,626 | ConAgra Foods, Inc. | 72,455 | ||||||
473 | Constellation Brands, Inc., Class A | 73,816 | ||||||
637 | Coty, Inc., Class A | 19,365 | ||||||
797 | Dr Pepper Snapple Group, Inc. | 72,455 | ||||||
900 | Edgewell Personal Care Co. | 73,863 | ||||||
1,817 | Energizer Holdings, Inc. | 79,021 | ||||||
3,848 | Flowers Foods, Inc. | 73,728 | ||||||
1,787 | Hain Celestial Group, Inc. (The)(b) | 74,804 | ||||||
1,187 | Herbalife Ltd.(b) | 68,787 | ||||||
797 | Hershey Co. (The) | 74,209 | ||||||
1,645 | Hormel Foods Corp. | 63,415 | ||||||
681 | Ingredion, Inc. | 78,376 | ||||||
545 | JM Smucker Co. (The) | 69,204 | ||||||
952 | Kellogg Co. | 73,123 | ||||||
739 | McCormick & Co., Inc. | 69,303 | ||||||
871 | Mead Johnson Nutrition Co. | 75,908 | ||||||
755 | Molson Coors Brewing Co., Class B | 72,201 | ||||||
543 | Monster Beverage Corp.(b) | 78,312 | ||||||
1,907 | Nu Skin Enterprises, Inc., Class A | 77,748 | ||||||
2,958 | Pilgrim’s Pride Corp.(b) | 79,600 | ||||||
1,614 | Pinnacle Foods, Inc. | 68,740 | ||||||
8,887 | Rite Aid Corp.(b) | 71,540 | ||||||
675 | Spectrum Brands Holdings, Inc. | 76,680 | ||||||
2,502 | Sprouts Farmers Market, Inc.(b) | 70,231 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Consumer Staples (continued) | ||||||||
1,557 | Sysco Corp. | $ | 71,731 | |||||
1,070 | Tyson Foods, Inc., Class A | 70,427 | ||||||
1,820 | WhiteWave Foods Co. (The)(b) | 73,182 | ||||||
2,251 | Whole Foods Market, Inc. | 65,459 | ||||||
|
| |||||||
2,518,830 | ||||||||
|
| |||||||
Energy—11.8% | ||||||||
1,564 | Antero Resources Corp.(b) | 44,261 | ||||||
1,749 | Cabot Oil & Gas Corp. | 40,927 | ||||||
33,319 | California Resources Corp. | 73,302 | ||||||
1,162 | Cheniere Energy, Inc.(b) | 45,179 | ||||||
9,540 | Chesapeake Energy Corp. | 65,540 | ||||||
404 | Cimarex Energy Co. | 43,987 | ||||||
13,353 | Cobalt International Energy, Inc.(b) | 43,130 | ||||||
1,542 | Columbia Pipeline Group, Inc. | 39,506 | ||||||
385 | Concho Resources, Inc.(b) | 44,725 | ||||||
3,534 | CONSOL Energy, Inc. | 53,187 | ||||||
1,356 | Continental Resources, Inc.(b) | 50,525 | ||||||
1,487 | CVR Energy, Inc. | 36,104 | ||||||
17,331 | Denbury Resources, Inc. | 66,898 | ||||||
1,708 | Diamond Offshore Drilling, Inc. | 41,436 | ||||||
505 | Diamondback Energy, Inc.(b) | 43,723 | ||||||
647 | Dril-Quip, Inc.(b) | 41,939 | ||||||
1,147 | Energen Corp. | 48,736 | ||||||
3,600 | Ensco PLC, Class A | 43,056 | ||||||
7,552 | EP Energy Corp., Class A(b) | 37,080 | ||||||
591 | EQT Corp. | 41,429 | ||||||
1,438 | FMC Technologies, Inc.(b) | 43,845 | ||||||
2,379 | Frank’s International NV | 39,610 | ||||||
2,153 | Golar LNG Ltd. (Bermuda) | 35,697 | ||||||
1,412 | Gulfport Energy Corp.(b) | 44,196 | ||||||
661 | Helmerich & Payne, Inc. | 43,705 | ||||||
759 | Hess Corp. | 45,252 | ||||||
1,081 | HollyFrontier Corp. | 38,484 | ||||||
6,891 | Kosmos Energy Ltd.(b) | 44,654 | ||||||
5,137 | Laredo Petroleum, Inc.(b) | 62,569 | ||||||
3,798 | Marathon Oil Corp. | 53,514 | ||||||
4,037 | Memorial Resource Development Corp.(b) | 52,804 | ||||||
1,602 | Murphy Oil Corp. | 57,255 | ||||||
4,446 | Nabors Industries Ltd. | 43,571 | ||||||
1,226 | National Oilwell Varco, Inc. | 44,185 | ||||||
1,211 | Newfield Exploration Co.(b) | 43,899 | ||||||
3,600 | Noble Corp. PLC (United Kingdom) | 40,428 | ||||||
1,300 | Noble Energy, Inc. | 46,943 | ||||||
1,171 | Oceaneering International, Inc. | 42,917 | ||||||
1,362 | ONEOK, Inc. | 49,236 | ||||||
2,304 | Patterson-UTI Energy, Inc. | 45,504 | ||||||
1,186 | PBF Energy, Inc., Class A | 38,165 | ||||||
281 | Pioneer Natural Resources Co. | 46,674 | ||||||
2,919 | QEP Resources, Inc. | 52,338 | ||||||
1,212 | Range Resources Corp. | 53,461 | ||||||
2,994 | Rice Energy, Inc.(b) | 51,826 | ||||||
2,452 | Rowan Cos. PLC, Class A | 46,122 | ||||||
2,799 | RPC, Inc. | 42,321 | ||||||
11,485 | Seadrill Ltd. (United Kingdom)(b)(c) | 54,898 | ||||||
2,179 | SM Energy Co. | 67,898 | ||||||
5,202 | Southwestern Energy Co.(b) | 69,863 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 69 |
|
PowerShares Russell Midcap Equal Weight Portfolio (EQWM) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Energy (continued) | ||||||||
3,029 | Superior Energy Services, Inc. | $ | 51,069 | |||||
1,377 | Targa Resources Corp. | 55,713 | ||||||
2,651 | Teekay Corp. (Bermuda) | 29,691 | ||||||
428 | Tesoro Corp. | 34,107 | ||||||
5,258 | Weatherford International PLC(b) | 42,748 | ||||||
5,397 | Whiting Petroleum Corp.(b) | 64,764 | ||||||
810 | World Fuel Services Corp. | 37,851 | ||||||
6,078 | WPX Energy, Inc.(b) | 58,713 | ||||||
|
| |||||||
2,761,160 | ||||||||
|
| |||||||
Financials—10.0% | ||||||||
82 | Affiliated Managers Group, Inc.(b) | 13,966 | ||||||
138 | Alexandria Real Estate Equities, Inc. REIT | 12,827 | ||||||
28 | Alleghany Corp.(b) | 14,596 | ||||||
346 | Allied World Assurance Co. Holdings AG | 12,311 | ||||||
678 | Ally Financial, Inc.(b) | 12,075 | ||||||
270 | American Campus Communities, Inc. REIT | 12,082 | ||||||
665 | American Capital Agency Corp. REIT | 12,216 | ||||||
175 | American Financial Group, Inc. | 12,094 | ||||||
792 | American Homes 4 Rent, Class A REIT | 12,529 | ||||||
108 | American National Insurance Co. | 12,541 | ||||||
132 | Ameriprise Financial, Inc. | 12,659 | ||||||
478 | AmTrust Financial Services, Inc. | 11,878 | ||||||
1,186 | Annaly Capital Management, Inc. REIT | 12,358 | ||||||
121 | Aon PLC | 12,720 | ||||||
304 | Apartment Investment & Management Co., Class A REIT | 12,178 | ||||||
634 | Apple Hospitality REIT, Inc. REIT | 12,002 | ||||||
176 | Arch Capital Group Ltd. (Bermuda)(b) | 12,406 | ||||||
282 | Arthur J. Gallagher & Co. | 12,983 | ||||||
422 | Artisan Partners Asset Management, Inc., Class A | 13,635 | ||||||
259 | Aspen Insurance Holdings Ltd. (Bermuda) | 12,005 | ||||||
684 | Associated Banc-Corp. | 12,476 | ||||||
159 | Assurant, Inc. | 13,447 | ||||||
495 | Assured Guaranty Ltd. | 12,806 | ||||||
66 | AvalonBay Communities, Inc. REIT | 11,668 | ||||||
224 | Axis Capital Holdings Ltd. | 11,932 | ||||||
182 | Bank of Hawaii Corp. | 12,451 | ||||||
358 | BankUnited, Inc. | 12,351 | ||||||
217 | BOK Financial Corp. | 13,059 | ||||||
99 | Boston Properties, Inc. REIT | 12,757 | ||||||
901 | Brandywine Realty Trust REIT | 13,470 | ||||||
499 | Brixmor Property Group, Inc. REIT | 12,600 | ||||||
349 | Brown & Brown, Inc. | 12,253 | ||||||
150 | Camden Property Trust REIT | 12,109 | ||||||
521 | Care Capital Properties, Inc. REIT | 13,895 | ||||||
1,089 | CBL & Associates Properties, Inc. REIT | 12,719 | ||||||
190 | CBOE Holdings, Inc. | 11,772 | ||||||
438 | CBRE Group, Inc., Class A(b) | 12,978 | ||||||
898 | Chimera Investment Corp. REIT | 12,752 | ||||||
189 | Cincinnati Financial Corp. | 12,476 | ||||||
380 | CIT Group, Inc. | 13,137 | ||||||
577 | Citizens Financial Group, Inc. | 13,184 | ||||||
386 | CNA Financial Corp. | 12,198 | ||||||
582 | Columbia Property Trust, Inc. REIT | 12,979 | ||||||
319 | Comerica, Inc. | 14,164 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
277 | Commerce Bancshares, Inc. | $ | 12,969 | |||||
570 | Communications Sales & Leasing, Inc. REIT(b) | 13,241 | ||||||
478 | Corporate Office Properties Trust REIT | 12,275 | ||||||
384 | Corrections Corp. of America REIT | 11,681 | ||||||
68 | Credit Acceptance Corp.(b)(c) | 13,346 | ||||||
144 | Crown Castle International Corp. REIT | 12,511 | ||||||
218 | Cullen/Frost Bankers, Inc. | 13,950 | ||||||
727 | DDR Corp. REIT | 12,722 | ||||||
142 | Digital Realty Trust, Inc. REIT | 12,493 | ||||||
417 | Douglas Emmett, Inc. REIT | 13,532 | ||||||
564 | Duke Realty Corp. REIT | 12,335 | ||||||
506 | E*TRADE Financial Corp.(b) | 12,741 | ||||||
379 | East West Bancorp, Inc. | 14,209 | ||||||
381 | Eaton Vance Corp. | 13,156 | ||||||
714 | Empire State Realty Trust, Inc., Class A REIT | 13,216 | ||||||
189 | Endurance Specialty Holdings Ltd. | 12,092 | ||||||
42 | Equinix, Inc. REIT | 13,875 | ||||||
446 | Equity Commonwealth REIT(b) | 12,448 | ||||||
174 | Equity LifeStyle Properties, Inc. REIT | 11,917 | ||||||
134 | Erie Indemnity Co., Class A | 12,648 | ||||||
54 | Essex Property Trust, Inc. REIT | 11,904 | ||||||
64 | Everest Re Group Ltd. | 11,834 | ||||||
136 | Extra Space Storage, Inc. REIT | 11,553 | ||||||
82 | FactSet Research Systems, Inc. | 12,361 | ||||||
80 | Federal Realty Investment Trust REIT | 12,166 | ||||||
437 | Federated Investors, Inc., Class B | 13,809 | ||||||
723 | Fifth Third Bancorp | 13,238 | ||||||
945 | First Horizon National Corp. | 13,306 | ||||||
1,261 | First Niagara Financial Group, Inc. | 13,316 | ||||||
185 | First Republic Bank | 13,009 | ||||||
375 | FNF Group | 11,962 | ||||||
592 | Forest City Realty Trust, Inc., Class A REIT | 12,302 | ||||||
677 | Four Corners Property Trust, Inc. REIT | 12,017 | ||||||
413 | Gaming and Leisure Properties, Inc. REIT | 13,542 | ||||||
427 | General Growth Properties, Inc. REIT | 11,969 | ||||||
4,590 | Genworth Financial, Inc., Class A(b) | 15,744 | ||||||
138 | Hanover Insurance Group, Inc. (The) | 11,835 | ||||||
268 | Hartford Financial Services Group, Inc. (The) | 11,894 | ||||||
384 | HCP, Inc. REIT | 12,991 | ||||||
430 | Healthcare Trust of America, Inc., Class A REIT | 12,423 | ||||||
482 | Hospitality Properties Trust REIT | 12,334 | ||||||
756 | Host Hotels & Resorts, Inc. REIT | 11,960 | ||||||
124 | Howard Hughes Corp. (The)(b) | 13,041 | ||||||
1,296 | Huntington Bancshares, Inc. | 13,038 | ||||||
320 | Interactive Brokers Group, Inc., Class A | 12,160 | ||||||
53 | Intercontinental Exchange, Inc. | 12,722 | ||||||
405 | Invesco Ltd.(d) | 12,559 | ||||||
373 | Iron Mountain, Inc. REIT | 13,626 | ||||||
107 | Jones Lang LaSalle, Inc. | 12,323 | ||||||
1,105 | KeyCorp | 13,580 | ||||||
208 | Kilroy Realty Corp. REIT | 13,480 | ||||||
441 | Kimco Realty Corp. REIT | 12,401 | ||||||
288 | Lamar Advertising Co., Class A REIT | 17,867 | ||||||
323 | Lazard Ltd., Class A | 11,644 | ||||||
362 | Legg Mason, Inc. | 11,624 | ||||||
1,598 | LendingClub Corp.(b) | 12,624 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 70 |
|
PowerShares Russell Midcap Equal Weight Portfolio (EQWM) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
778 | Leucadia National Corp. | $ | 12,977 | |||||
379 | Liberty Property Trust REIT | 13,227 | ||||||
310 | Lincoln National Corp. | 13,469 | ||||||
322 | Loews Corp. | 12,777 | ||||||
515 | LPL Financial Holdings, Inc. | 13,596 | ||||||
111 | M&T Bank Corp. | 13,133 | ||||||
157 | Macerich Co. (The) REIT | 11,945 | ||||||
14 | Markel Corp.(b) | 12,588 | ||||||
223 | Mercury General Corp. | 11,797 | ||||||
1,868 | MFA Financial, Inc. REIT | 12,908 | ||||||
125 | Mid-America Apartment Communities, Inc. REIT | 11,964 | ||||||
133 | Moody’s Corp. | 12,731 | ||||||
143 | Morningstar, Inc. | 11,898 | ||||||
173 | MSCI, Inc. | 13,138 | ||||||
191 | Nasdaq, Inc. | 11,787 | ||||||
269 | National Retail Properties, Inc. REIT | 11,771 | ||||||
1,046 | Navient Corp. | 14,299 | ||||||
791 | New York Community Bancorp, Inc. | 11,889 | ||||||
190 | Northern Trust Corp. | 13,505 | ||||||
1,112 | NorthStar Asset Management Group, Inc. | 13,833 | ||||||
1,122 | NorthStar Realty Europe Corp. REIT | 13,385 | ||||||
987 | NorthStar Realty Finance Corp. REIT | 12,624 | ||||||
680 | Old Republic International Corp. | 12,573 | ||||||
360 | OMEGA Healthcare Investors, Inc. REIT | 12,157 | ||||||
474 | OneMain Holdings, Inc.(b) | 15,083 | ||||||
849 | Outfront Media, Inc. REIT | 18,415 | ||||||
331 | PacWest Bancorp | 13,233 | ||||||
788 | Paramount Group, Inc. REIT | 13,160 | ||||||
779 | People’s United Financial, Inc. | 12,074 | ||||||
623 | Piedmont Office Realty Trust, Inc., Class A REIT | 12,404 | ||||||
439 | Popular, Inc. | 13,047 | ||||||
210 | Post Properties, Inc. REIT | 12,046 | ||||||
314 | Principal Financial Group, Inc. | 13,401 | ||||||
245 | ProAssurance Corp. | 11,694 | ||||||
353 | Progressive Corp. (The) | 11,508 | ||||||
287 | Prologis, Inc. REIT | 13,033 | ||||||
262 | Raymond James Financial, Inc. | 13,669 | ||||||
517 | Rayonier, Inc. REIT | 12,760 | ||||||
361 | Realogy Holdings Corp.(b) | 12,902 | ||||||
198 | Realty Income Corp. REIT | 11,722 | ||||||
166 | Regency Centers Corp. REIT | 12,234 | ||||||
1,534 | Regions Financial Corp. | 14,389 | ||||||
128 | Reinsurance Group of America, Inc. | 12,188 | ||||||
104 | RenaissanceRe Holdings Ltd. (Bermuda) | 11,535 | ||||||
805 | Retail Properties of America, Inc., Class A REIT | 12,872 | ||||||
126 | S&P Global, Inc. | 13,463 | ||||||
1,391 | Santander Consumer USA Holdings, Inc.(b) | 18,319 | ||||||
295 | SEI Investments Co. | 14,184 | ||||||
714 | Senior Housing Properties Trust REIT | 12,552 | ||||||
90 | Signature Bank(b) | 12,405 | ||||||
131 | SL Green Realty Corp. REIT | 13,765 | ||||||
1,945 | SLM Corp.(b) | 13,168 | ||||||
1,114 | Spirit Realty Capital, Inc. REIT | 12,733 | ||||||
644 | Starwood Property Trust, Inc. REIT | 12,468 | ||||||
336 | SunTrust Banks, Inc. | 14,025 | ||||||
124 | SVB Financial Group(b) | 12,931 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
435 | Synchrony Financial(b) | $ | 13,298 | |||||
425 | Synovus Financial Corp. | 13,243 | ||||||
170 | T. Rowe Price Group, Inc. | 12,799 | ||||||
350 | Tanger Factory Outlet Centers, Inc. REIT | 12,278 | ||||||
177 | Taubman Centers, Inc. REIT | 12,293 | ||||||
1,006 | TCF Financial Corp. | 13,722 | ||||||
397 | TD Ameritrade Holding Corp. | 11,842 | ||||||
709 | TFS Financial Corp. | 12,691 | ||||||
227 | Torchmark Corp. | 13,141 | ||||||
1,566 | Two Harbors Investment Corp. REIT | 12,262 | ||||||
330 | UDR, Inc. REIT | 11,524 | ||||||
395 | Unum Group | 13,513 | ||||||
266 | Validus Holdings Ltd. | 12,260 | ||||||
199 | Ventas, Inc. REIT | 12,362 | ||||||
1,400 | VEREIT, Inc. REIT | 12,432 | ||||||
134 | Vornado Realty Trust REIT | 12,828 | ||||||
405 | Voya Financial, Inc. | 13,150 | ||||||
227 | W.R. Berkley Corp. | 12,712 | ||||||
550 | Waddell & Reed Financial, Inc., Class A | 11,187 | ||||||
333 | Weingarten Realty Investors REIT | 12,294 | ||||||
183 | Welltower, Inc. REIT | 12,704 | ||||||
403 | Weyerhaeuser Co. REIT | 12,944 | ||||||
16 | White Mountains Insurance Group Ltd. | 13,280 | ||||||
200 | WP Carey, Inc. REIT | 12,218 | ||||||
1,352 | WP GLIMCHER, Inc. REIT | 14,182 | ||||||
335 | XL Group PLC | 10,965 | ||||||
499 | Zions Bancorporation | 13,732 | ||||||
|
| |||||||
2,346,418 | ||||||||
|
| |||||||
Health Care—11.8% | ||||||||
679 | Acadia Healthcare Co., Inc.(b) | 42,906 | ||||||
919 | Agilent Technologies, Inc. | 37,605 | ||||||
1,004 | Agios Pharmaceuticals, Inc.(b) | 49,146 | ||||||
1,562 | Akorn, Inc.(b) | 39,753 | ||||||
721 | Alere, Inc.(b) | 28,119 | ||||||
516 | Align Technology, Inc.(b) | 37,250 | ||||||
1,202 | Alkermes PLC(b) | 47,780 | ||||||
2,989 | Allscripts Healthcare Solutions, Inc.(b) | 40,053 | ||||||
618 | Alnylam Pharmaceuticals, Inc.(b) | 41,431 | ||||||
420 | AmerisourceBergen Corp. | 35,742 | ||||||
275 | athenahealth, Inc.(b) | 36,657 | ||||||
460 | BioMarin Pharmaceutical, Inc.(b) | 38,953 | ||||||
275 | Bio-Rad Laboratories, Inc., Class A(b) | 39,009 | ||||||
390 | Bio-Techne Corp. | 36,340 | ||||||
913 | Bluebird Bio, Inc.(b) | 40,492 | ||||||
2,013 | Boston Scientific Corp.(b) | 44,125 | ||||||
2,406 | Brookdale Senior Living, Inc.(b) | 44,415 | ||||||
1,326 | Bruker Corp. | 37,526 | ||||||
189 | C.R. Bard, Inc. | 40,100 | ||||||
582 | Centene Corp.(b) | 36,061 | ||||||
704 | Cerner Corp.(b) | 39,523 | ||||||
490 | Charles River Laboratories International, Inc.(b) | 38,842 | ||||||
2,134 | Community Health Systems, Inc.(b) | 40,717 | ||||||
243 | Cooper Cos., Inc. (The) | 37,198 | ||||||
508 | DaVita HealthCare Partners, Inc.(b) | 37,541 | ||||||
602 | Dentsply Sirona, Inc. | 35,879 | ||||||
611 | DexCom, Inc.(b) | 39,336 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 71 |
|
PowerShares Russell Midcap Equal Weight Portfolio (EQWM) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Health Care (continued) | ||||||||
419 | Edwards Lifesciences Corp.(b) | $ | 44,502 | |||||
1,285 | Endo International PLC(b) | 34,695 | ||||||
1,830 | Envision Healthcare Holdings, Inc.(b) | 41,413 | ||||||
215 | Henry Schein, Inc.(b) | 36,270 | ||||||
747 | Hill-Rom Holdings, Inc. | 36,117 | ||||||
1,050 | Hologic, Inc.(b) | 35,269 | ||||||
479 | IDEXX Laboratories, Inc.(b) | 40,404 | ||||||
1,056 | IMS Health Holdings, Inc.(b) | 28,132 | ||||||
531 | Incyte Corp.(b) | 38,375 | ||||||
1,482 | Inovalon Holdings, Inc., Class A(b) | 25,342 | ||||||
292 | Intercept Pharmaceuticals, Inc.(b) | 44,016 | ||||||
1,051 | Intrexon Corp.(b) | 28,093 | ||||||
65 | Intuitive Surgical, Inc.(b) | 40,713 | ||||||
948 | Ionis Pharmaceuticals, Inc.(b) | 38,840 | ||||||
311 | Jazz Pharmaceuticals PLC(b) | 46,868 | ||||||
1,009 | Juno Therapeutics, Inc.(b) | 42,469 | ||||||
318 | Laboratory Corp. of America Holdings(b) | 39,852 | ||||||
549 | LifePoint Health, Inc.(b) | 37,090 | ||||||
616 | Mallinckrodt PLC(b) | 38,512 | ||||||
881 | Medivation, Inc.(b) | 50,922 | ||||||
559 | MEDNAX, Inc.(b) | 39,851 | ||||||
66 | Mettler-Toledo International, Inc.(b) | 23,625 | ||||||
3,255 | OPKO Health, Inc.(b) | 34,991 | ||||||
810 | Patterson Cos., Inc. | 35,113 | ||||||
752 | PerkinElmer, Inc. | 37,916 | ||||||
285 | Perrigo Co. PLC | 27,551 | ||||||
1,126 | Premier, Inc., Class A(b) | 38,070 | ||||||
1,026 | Puma Biotechnology, Inc.(b) | 31,488 | ||||||
1,677 | QIAGEN NV(b) | 37,665 | ||||||
516 | Quest Diagnostics, Inc. | 38,788 | ||||||
570 | Quintiles Transnational Holdings, Inc.(b) | 39,370 | ||||||
649 | ResMed, Inc. | 36,214 | ||||||
1,080 | Seattle Genetics, Inc.(b) | 38,318 | ||||||
688 | St. Jude Medical, Inc. | 52,426 | ||||||
234 | Teleflex, Inc. | 36,453 | ||||||
1,297 | Tenet Healthcare Corp.(b) | 41,102 | ||||||
335 | United Therapeutics Corp.(b) | 35,242 | ||||||
305 | Universal Health Services, Inc., Class B | 40,772 | ||||||
466 | Varian Medical Systems, Inc.(b) | 37,830 | ||||||
646 | VCA, Inc.(b) | 40,679 | ||||||
1,502 | Veeva Systems, Inc., Class A(b) | 41,320 | ||||||
1,403 | VWR Corp.(b) | 37,376 | ||||||
173 | Waters Corp.(b) | 22,518 | ||||||
348 | Zimmer Biomet Holdings, Inc. | 40,288 | ||||||
861 | Zoetis, Inc. | 40,493 | ||||||
|
| |||||||
2,755,852 | ||||||||
|
| |||||||
Industrials—12.6% | ||||||||
298 | A.O. Smith Corp. | 23,012 | ||||||
191 | Acuity Brands, Inc. | 46,583 | ||||||
735 | AECOM(b) | 23,880 | ||||||
443 | AGCO Corp. | 23,687 | ||||||
727 | Air Lease Corp. | 22,159 | ||||||
275 | Alaska Air Group, Inc. | 19,368 | ||||||
354 | Allegion PLC | 23,169 | ||||||
843 | Allison Transmission Holdings, Inc. | 24,287 | ||||||
51 | AMERCO | 17,952 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Industrials (continued) | ||||||||
456 | AMETEK, Inc. | $ | 21,929 | |||||
449 | �� | Armstrong Flooring, Inc.(b) | 6,537 | |||||
897 | Armstrong World Industries, Inc.(b) | 36,607 | ||||||
671 | Avis Budget Group, Inc.(b) | 16,842 | ||||||
486 | B/E Aerospace, Inc. | 23,634 | ||||||
1,079 | Babcock & Wilcox Enterprises, Inc.(b) | 24,655 | ||||||
665 | BWX Technologies, Inc. | 22,204 | ||||||
304 | C.H. Robinson Worldwide, Inc. | 21,575 | ||||||
230 | Carlisle Cos., Inc. | 23,437 | ||||||
607 | Chicago Bridge & Iron Co. NV | 24,432 | ||||||
253 | Cintas Corp. | 22,714 | ||||||
469 | Clean Harbors, Inc.(b) | 23,169 | ||||||
793 | Colfax Corp.(b) | 25,717 | ||||||
338 | Copa Holdings SA, Class A (Panama) | 21,548 | ||||||
556 | Copart, Inc.(b) | 23,819 | ||||||
1,349 | Covanta Holding Corp. | 21,935 | ||||||
422 | Crane Co. | 23,451 | ||||||
695 | Donaldson Co., Inc. | 22,713 | ||||||
350 | Dover Corp. | 22,995 | ||||||
122 | Dun & Bradstreet Corp. (The) | 13,470 | ||||||
110 | Equifax, Inc. | 13,227 | ||||||
461 | Expeditors International of Washington, Inc. | 22,870 | ||||||
848 | Fastenal Co. | 39,678 | ||||||
511 | Flowserve Corp. | 24,942 | ||||||
416 | Fluor Corp. | 22,739 | ||||||
314 | Fortune Brands Home & Security, Inc. | 17,399 | ||||||
486 | GATX Corp. | 22,327 | ||||||
370 | Genesee & Wyoming, Inc., Class A(b) | 24,091 | ||||||
275 | Graco, Inc. | 21,557 | ||||||
690 | HD Supply Holdings, Inc.(b) | 23,653 | ||||||
1,760 | Hertz Global Holdings, Inc.(b) | 16,298 | ||||||
942 | Hexcel Corp. | 42,644 | ||||||
221 | Hubbell, Inc. | 23,373 | ||||||
163 | Huntington Ingalls Industries, Inc. | 23,598 | ||||||
272 | IDEX Corp. | 22,277 | ||||||
184 | IHS, Inc., Class A(b) | 22,665 | ||||||
672 | Ingersoll-Rand PLC | 44,043 | ||||||
618 | ITT Corp. | 23,713 | ||||||
267 | J.B. Hunt Transport Services, Inc. | 22,129 | ||||||
522 | Jacobs Engineering Group, Inc.(b) | 23,271 | ||||||
1,080 | JetBlue Airways Corp.(b) | 21,373 | ||||||
1,436 | Joy Global, Inc. | 30,587 | ||||||
268 | Kansas City Southern | 25,393 | ||||||
462 | KAR Auction Services, Inc. | 17,371 | ||||||
1,490 | KBR, Inc. | 23,184 | ||||||
1,039 | Kennametal, Inc. | 24,292 | ||||||
380 | Kirby Corp.(b) | 24,252 | ||||||
189 | L-3 Communications Holdings, Inc. | 24,859 | ||||||
342 | Landstar System, Inc. | 22,418 | ||||||
312 | Lennox International, Inc. | 42,104 | ||||||
393 | Lincoln Electric Holdings, Inc. | 24,629 | ||||||
344 | Macquarie Infrastructure Corp. | 24,214 | ||||||
5,162 | Manitowoc Co., Inc. (The) | 29,423 | ||||||
1,570 | Manitowoc Foodservice, Inc.(b) | 23,566 | ||||||
282 | ManpowerGroup, Inc. | 21,722 | ||||||
1,319 | Masco Corp. | 40,506 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 72 |
|
PowerShares Russell Midcap Equal Weight Portfolio (EQWM) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Industrials (continued) | ||||||||
217 | Middleby Corp. (The)(b) | $ | 23,792 | |||||
302 | MSC Industrial Direct Co., Inc., Class A | 23,405 | ||||||
330 | Nielsen Holdings PLC | 17,206 | ||||||
297 | Nordson Corp. | 22,789 | ||||||
2,120 | NOW, Inc.(b) | 38,287 | ||||||
331 | Old Dominion Freight Line, Inc.(b) | 21,863 | ||||||
263 | Orbital ATK, Inc. | 22,881 | ||||||
555 | Oshkosh Corp. | 27,112 | ||||||
868 | Owens Corning | 39,989 | ||||||
417 | PACCAR, Inc. | 24,565 | ||||||
204 | Parker-Hannifin Corp. | 23,668 | ||||||
426 | Pentair PLC (United Kingdom) | 24,742 | ||||||
1,072 | Pitney Bowes, Inc. | 22,480 | ||||||
1,007 | Quanta Services, Inc.(b) | 23,886 | ||||||
1,407 | R.R. Donnelley & Sons Co. | 24,482 | ||||||
362 | Regal Beloit Corp. | 23,320 | ||||||
464 | Republic Services, Inc. | 21,840 | ||||||
506 | Robert Half International, Inc. | 19,385 | ||||||
200 | Rockwell Automation, Inc. | 22,694 | ||||||
244 | Rockwell Collins, Inc. | 21,518 | ||||||
838 | Rollins, Inc. | 22,517 | ||||||
124 | Roper Technologies, Inc. | 21,835 | ||||||
351 | Ryder System, Inc. | 24,191 | ||||||
142 | Snap-on, Inc. | 22,618 | ||||||
1,830 | SolarCity Corp.(b) | 55,486 | ||||||
512 | Southwest Airlines Co. | 22,840 | ||||||
481 | Spirit AeroSystems Holdings, Inc., Class A(b) | 22,679 | ||||||
476 | Spirit Airlines, Inc.(b) | 20,911 | ||||||
1,588 | SPX Corp. | 25,567 | ||||||
898 | SPX FLOW, Inc.(b) | 26,904 | ||||||
216 | Stanley Black & Decker, Inc. | 24,175 | ||||||
181 | Stericycle, Inc.(b) | 17,296 | ||||||
891 | Terex Corp. | 21,286 | ||||||
623 | Textron, Inc. | 24,098 | ||||||
1,276 | Timken Co. (The) | 45,464 | ||||||
258 | Toro Co. (The) | 22,304 | ||||||
102 | TransDigm Group, Inc.(b) | 23,243 | ||||||
462 | TransUnion(b) | 13,837 | ||||||
1,239 | Trinity Industries, Inc. | 24,173 | ||||||
740 | Triumph Group, Inc. | 26,773 | ||||||
620 | Tyco International PLC | 23,882 | ||||||
388 | United Continental Holdings, Inc.(b) | 17,774 | ||||||
364 | United Rentals, Inc.(b) | 24,363 | ||||||
1,732 | USG Corp.(b) | 46,781 | ||||||
335 | Valmont Industries, Inc. | 47,027 | ||||||
289 | Verisk Analytics, Inc.(b) | 22,421 | ||||||
99 | W.W. Grainger, Inc. | 23,217 | ||||||
165 | WABCO Holdings, Inc.(b) | 18,506 | ||||||
289 | Wabtec Corp. | 23,967 | ||||||
351 | Waste Connections, Inc. | 23,615 | ||||||
310 | Watsco, Inc. | 41,686 | ||||||
423 | WESCO International, Inc.(b) | 24,868 | ||||||
563 | Xylem, Inc. | 23,522 | ||||||
|
| |||||||
2,943,597 | ||||||||
|
|
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Information Technology—12.5% | ||||||||
1,800 | 3D Systems Corp.(b) | $ | 31,842 | |||||
845 | Activision Blizzard, Inc. | 29,127 | ||||||
494 | Akamai Technologies, Inc.(b) | 25,189 | ||||||
58 | Alliance Data Systems Corp.(b) | 11,792 | ||||||
455 | Amdocs Ltd. | 25,726 | ||||||
474 | Amphenol Corp., Class A | 26,463 | ||||||
465 | Analog Devices, Inc. | 26,189 | ||||||
311 | ANSYS, Inc.(b) | 28,229 | ||||||
1,344 | Applied Materials, Inc. | 27,512 | ||||||
460 | Arista Networks, Inc.(b) | 30,645 | ||||||
1,181 | ARRIS International PLC(b) | 26,891 | ||||||
434 | Arrow Electronics, Inc.(b) | 26,951 | ||||||
1,131 | Atlassian Corp. PLC, Class A (United Kingdom)(b) | 26,205 | ||||||
475 | Autodesk, Inc.(b) | 28,414 | ||||||
618 | Avnet, Inc. | 25,412 | ||||||
932 | Black Knight Financial Services, Inc., Class A(b) | 29,805 | ||||||
759 | Booz Allen Hamilton Holding Corp. | 20,926 | ||||||
214 | Broadridge Financial Solutions, Inc. | 12,806 | ||||||
2,647 | Brocade Communications Systems, Inc. | 25,438 | ||||||
883 | CA, Inc. | 26,190 | ||||||
1,182 | Cadence Design Systems, Inc.(b) | 27,411 | ||||||
594 | CDK Global, Inc. | 28,257 | ||||||
666 | CDW Corp. | 25,641 | ||||||
354 | Citrix Systems, Inc.(b) | 28,971 | ||||||
720 | Cognex Corp. | 25,582 | ||||||
1,026 | CommScope Holding, Inc.(b) | 31,201 | ||||||
839 | Computer Sciences Corp. | 27,796 | ||||||
374 | CoreLogic, Inc.(b) | 13,270 | ||||||
122 | CoStar Group, Inc.(b) | 24,072 | ||||||
931 | Cree, Inc.(b) | 22,819 | ||||||
1,050 | CSRA, Inc. | 27,258 | ||||||
3,189 | Cypress Semiconductor Corp. | 28,797 | ||||||
652 | Dolby Laboratories, Inc., Class A | 31,042 | ||||||
250 | DST Systems, Inc. | 30,170 | ||||||
618 | EchoStar Corp., Class A(b) | 25,289 | ||||||
420 | Electronic Arts, Inc.(b) | 25,977 | ||||||
262 | F5 Networks, Inc.(b) | 27,444 | ||||||
198 | Fidelity National Information Services, Inc. | 13,028 | ||||||
1,549 | FireEye, Inc.(b) | 26,875 | ||||||
1,025 | First Data Corp., Class A(b) | 11,675 | ||||||
564 | First Solar, Inc.(b) | 31,494 | ||||||
124 | Fiserv, Inc.(b) | 12,117 | ||||||
1,275 | Fitbit, Inc., Class A(b)(c) | 23,269 | ||||||
85 | FleetCor Technologies, Inc.(b) | 13,148 | ||||||
675 | FLIR Systems, Inc. | 20,392 | ||||||
948 | Fortinet, Inc.(b) | 30,819 | ||||||
312 | Gartner, Inc.(b) | 27,197 | ||||||
844 | Genpact Ltd.(b) | 23,539 | ||||||
206 | Global Payments, Inc. | 14,869 | ||||||
851 | GoDaddy, Inc., Class A(b) | 25,845 | ||||||
349 | Harris Corp. | 27,923 | ||||||
595 | IAC/InterActiveCorp. | 27,572 | ||||||
749 | Ingram Micro, Inc., Class A | 26,178 | ||||||
266 | Intuit, Inc. | 26,837 | ||||||
284 | IPG Photonics Corp.(b) | 24,614 | ||||||
1,434 | Jabil Circuit, Inc. | 24,894 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 73 |
|
PowerShares Russell Midcap Equal Weight Portfolio (EQWM) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Information Technology (continued) | ||||||||
149 | Jack Henry & Associates, Inc. | $ | 12,073 | |||||
1,066 | Juniper Networks, Inc. | 24,944 | ||||||
824 | Keysight Technologies, Inc.(b) | 21,490 | ||||||
383 | KLA-Tencor Corp. | 26,787 | ||||||
343 | Lam Research Corp. | 26,205 | ||||||
550 | Leidos Holdings, Inc. | 27,286 | ||||||
714 | Lexmark International, Inc., Class A | 27,560 | ||||||
615 | Linear Technology Corp. | 27,355 | ||||||
248 | LinkedIn Corp., Class A(b) | 31,077 | ||||||
1,035 | Lumentum Holdings, Inc.(b) | 26,186 | ||||||
2,663 | Marvell Technology Group Ltd. (Bermuda) | 26,577 | ||||||
2,497 | Match Group, Inc., Class A(b) | 28,466 | ||||||
763 | Maxim Integrated Products, Inc. | 27,254 | ||||||
643 | Microchip Technology, Inc. | 31,243 | ||||||
370 | Motorola Solutions, Inc. | 27,820 | ||||||
764 | National Instruments Corp. | 21,063 | ||||||
934 | NCR Corp.(b) | 27,170 | ||||||
1,025 | NetApp, Inc. | 24,231 | ||||||
410 | NetSuite, Inc.(b) | 33,226 | ||||||
1,497 | Nuance Communications, Inc.(b) | 25,718 | ||||||
779 | NVIDIA Corp. | 27,678 | ||||||
2,885 | ON Semiconductor Corp.(b) | 27,321 | ||||||
174 | Palo Alto Networks, Inc.(b) | 26,251 | ||||||
1,799 | Pandora Media, Inc.(b) | 17,864 | ||||||
414 | Paychex, Inc. | 21,578 | ||||||
847 | PTC, Inc.(b) | 30,882 | ||||||
553 | Qorvo, Inc.(b) | 24,902 | ||||||
1,334 | Rackspace Hosting, Inc.(b) | 30,509 | ||||||
369 | Red Hat, Inc.(b) | 27,074 | ||||||
988 | Sabre Corp. | 28,603 | ||||||
359 | SanDisk Corp. | 26,972 | ||||||
450 | ServiceNow, Inc.(b) | 32,166 | ||||||
353 | Skyworks Solutions, Inc. | 23,587 | ||||||
578 | Splunk, Inc.(b) | 30,044 | ||||||
921 | Square, Inc., Class A(b)(c) | 13,714 | ||||||
438 | SS&C Technologies Holdings, Inc. | 26,784 | ||||||
1,758 | SunPower Corp.(b) | 35,406 | ||||||
1,470 | Symantec Corp. | 24,468 | ||||||
570 | Synopsys, Inc.(b) | 27,086 | ||||||
618 | Tableau Software, Inc., Class A(b) | 31,951 | ||||||
1,037 | Teradata Corp.(b) | 26,236 | ||||||
1,290 | Teradyne, Inc. | 24,394 | ||||||
270 | Total System Services, Inc. | 13,808 | ||||||
921 | Trimble Navigation Ltd.(b) | 22,058 | ||||||
1,740 | Twitter, Inc.(b) | 25,439 | ||||||
149 | Ultimate Software Group, Inc. (The)(b) | 29,292 | ||||||
234 | Vantiv, Inc., Class A(b) | 12,762 | ||||||
978 | VeriFone Systems, Inc.(b) | 27,834 | ||||||
306 | VeriSign, Inc.(b) | 26,438 | ||||||
4,045 | Viavi Solutions, Inc.(b) | 26,333 | ||||||
565 | Western Digital Corp. | 23,089 | ||||||
655 | Western Union Co. (The) | 13,100 | ||||||
150 | WEX, Inc.(b) | 14,174 | ||||||
376 | Workday, Inc., Class A(b) | 28,192 | ||||||
2,105 | Xerox Corp. | 20,208 | ||||||
577 | Xilinx, Inc. | 24,857 | ||||||
1,431 | Yelp, Inc., Class A(b) | 30,051 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Information Technology (continued) | ||||||||
332 | Zebra Technologies Corp., Class A(b) | $ | 20,770 | |||||
511 | Zillow Group, Inc., Class A(b) | 12,785 | ||||||
551 | Zillow Group, Inc., Class C(b) | 13,246 | ||||||
12,450 | Zynga, Inc., Class A(b) | 29,631 | ||||||
|
| |||||||
2,918,302 | ||||||||
|
| |||||||
Materials—9.3% | ||||||||
291 | Airgas, Inc. | 41,450 | ||||||
663 | Albemarle Corp. | 43,864 | ||||||
4,243 | Alcoa, Inc. | 47,394 | ||||||
2,541 | Allegheny Technologies, Inc. | 41,520 | ||||||
525 | AptarGroup, Inc. | 39,900 | ||||||
381 | Ashland, Inc. | 42,520 | ||||||
315 | Avery Dennison Corp. | 22,872 | ||||||
1,434 | Axalta Coating Systems Ltd.(b) | 40,826 | ||||||
585 | Ball Corp. | 41,757 | ||||||
790 | Bemis Co., Inc. | 39,642 | ||||||
847 | Cabot Corp. | 41,325 | ||||||
634 | Celanese Corp., Series A | 44,824 | ||||||
1,295 | CF Industries Holdings, Inc. | 42,826 | ||||||
574 | Compass Minerals International, Inc. | 43,027 | ||||||
848 | Crown Holdings, Inc.(b) | 44,910 | ||||||
1,098 | Domtar Corp. | 42,427 | ||||||
595 | Eagle Materials, Inc. | 44,101 | ||||||
565 | Eastman Chemical Co. | 43,155 | ||||||
1,008 | FMC Corp. | 43,606 | ||||||
4,060 | Freeport-McMoRan, Inc. | 56,840 | ||||||
2,050 | GCP Applied Technologies, Inc.(b) | 45,366 | ||||||
3,226 | Graphic Packaging Holding Co. | 42,841 | ||||||
3,188 | Huntsman Corp. | 50,179 | ||||||
362 | International Flavors & Fragrances, Inc. | 43,248 | ||||||
1,007 | International Paper Co. | 43,573 | ||||||
268 | Martin Marietta Materials, Inc. | 45,354 | ||||||
1,472 | Mosaic Co. (The) | 41,201 | ||||||
106 | NewMarket Corp. | 43,042 | ||||||
1,602 | Newmont Mining Corp. | 56,022 | ||||||
879 | Nucor Corp. | 43,757 | ||||||
2,597 | Owens-Illinois, Inc.(b) | 47,941 | ||||||
699 | Packaging Corp. of America | 45,351 | ||||||
4,953 | Platform Specialty Products Corp.(b) | 51,016 | ||||||
599 | Reliance Steel & Aluminum Co. | 44,308 | ||||||
832 | Royal Gold, Inc. | 52,100 | ||||||
885 | RPM International, Inc. | 44,719 | ||||||
568 | Scotts Miracle-Gro Co. (The), Class A | 40,203 | ||||||
861 | Sealed Air Corp. | 40,777 | ||||||
145 | Sherwin-Williams Co. (The) | 41,660 | ||||||
780 | Silgan Holdings, Inc. | 39,577 | ||||||
856 | Sonoco Products Co. | 40,138 | ||||||
1,843 | Steel Dynamics, Inc. | 46,462 | ||||||
3,946 | Tahoe Resources, Inc. | 55,757 | ||||||
2,644 | United States Steel Corp. | 50,527 | ||||||
386 | Valspar Corp. (The) | 41,182 | ||||||
390 | Vulcan Materials Co. | 41,976 | ||||||
584 | W.R. Grace & Co.(b) | 44,781 | ||||||
885 | Westlake Chemical Corp. | 44,418 | ||||||
1,070 | WestRock Co. | 44,780 | ||||||
|
| |||||||
2,161,042 | ||||||||
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 74 |
|
PowerShares Russell Midcap Equal Weight Portfolio (EQWM) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Telecommunication Services—1.9% | ||||||||
1,858 | CenturyLink, Inc. | $ | 57,505 | |||||
10,884 | Frontier Communications Corp. | 60,515 | ||||||
1,099 | Level 3 Communications, Inc.(b) | 57,434 | ||||||
278 | SBA Communications Corp., Class A(b) | 28,645 | ||||||
17,403 | Sprint Corp.(b) | 59,692 | ||||||
1,951 | Telephone & Data Systems, Inc. | 57,691 | ||||||
1,298 | United States Cellular Corp.(b) | 55,347 | ||||||
2,433 | Zayo Group Holdings, Inc.(b) | 63,161 | ||||||
|
| |||||||
439,990 | ||||||||
|
| |||||||
Utilities—9.3% | ||||||||
4,919 | AES Corp. (The) | 54,896 | ||||||
866 | AGL Resources, Inc. | 57,035 | ||||||
771 | Alliant Energy Corp. | 54,371 | ||||||
1,141 | Ameren Corp. | 54,768 | ||||||
859 | American Water Works Co., Inc. | 62,501 | ||||||
1,777 | Aqua America, Inc. | 56,260 | ||||||
774 | Atmos Energy Corp. | 56,154 | ||||||
1,438 | Avangrid, Inc.(b) | 57,664 | ||||||
4,022 | Calpine Corp.(b) | 63,467 | ||||||
2,776 | CenterPoint Energy, Inc. | 59,545 | ||||||
1,348 | CMS Energy Corp. | 54,837 | ||||||
743 | Consolidated Edison, Inc. | 55,428 | ||||||
629 | DTE Energy Co. | 56,082 | ||||||
787 | Edison International | 55,649 | ||||||
718 | Entergy Corp. | 53,979 | ||||||
972 | Eversource Energy | 54,860 | ||||||
1,570 | FirstEnergy Corp. | 51,166 | ||||||
1,824 | Great Plains Energy, Inc. | 56,963 | ||||||
1,751 | Hawaiian Electric Industries, Inc. | 57,240 | ||||||
1,352 | ITC Holdings Corp. | 59,583 | ||||||
3,056 | MDU Resources Group, Inc. | 61,303 | ||||||
1,123 | National Fuel Gas Co. | 62,326 | ||||||
2,449 | NiSource, Inc. | 55,617 | ||||||
4,403 | NRG Energy, Inc. | 66,485 | ||||||
1,996 | OGE Energy Corp. | 59,062 | ||||||
772 | Pinnacle West Capital Corp. | 56,086 | ||||||
1,554 | PPL Corp. | 58,492 | ||||||
1,253 | Public Service Enterprise Group, Inc. | 57,801 | ||||||
2,282 | Questar Corp. | 57,210 | ||||||
816 | SCANA Corp. | 56,051 | ||||||
553 | Sempra Energy | 57,152 | ||||||
2,099 | TECO Energy, Inc. | 58,289 | ||||||
4,556 | TerraForm Power, Inc., Class A | 48,658 | ||||||
1,410 | UGI Corp. | 56,738 | ||||||
1,121 | Vectren Corp. | 54,761 | ||||||
967 | WEC Energy Group, Inc. | 56,289 | ||||||
1,175 | Westar Energy, Inc. | 60,642 | ||||||
1,404 | Xcel Energy, Inc. | 56,202 | ||||||
|
| |||||||
2,171,612 | ||||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $25,173,477) | 23,357,284 | |||||||
|
| |||||||
Number of Shares | Value | |||||||
Money Market Fund—0.1% | ||||||||
27,078 | Invesco Premier Portfolio—Institutional Class, 0.39%(e) (Cost $27,078) | $ | 27,078 | |||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $25,200,555)—100.1% | 23,384,362 | |||||||
|
| |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—0.4% | ||||||||
97,802 | Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(e)(f) (Cost $97,802) | 97,802 | ||||||
|
| |||||||
Total Investments (Cost $25,298,357)—100.5% | 23,482,164 | |||||||
Other assets less liabilities—(0.5)% | (124,830 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 23,357,334 | ||||||
|
|
Investment Abbreviations:
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | Non-income producing security. |
(c) | All or a portion of this security was out on loan at April 30, 2016. |
(d) | Affiliated company. The Fund’s Adviser is a wholly-owned subsidiary of Invesco Ltd. and therefore, Invesco Ltd. is considered to be affiliated. See Note 4. |
(e) | The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
(f) | 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 accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 75 |
|
Schedule of Investments(a)
PowerShares Russell Midcap Pure Growth Portfolio (PXMG)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.1% | ||||||||
Consumer Discretionary—26.2% | ||||||||
3,843 | Advance Auto Parts, Inc. | $ | 599,892 | |||||
5,927 | CarMax, Inc.(b) | 313,835 | ||||||
5,528 | Carter’s, Inc. | 589,672 | ||||||
2,067 | Chipotle Mexican Grill, Inc.(b) | 870,145 | ||||||
12,735 | Dollar Tree, Inc.(b) | 1,015,107 | ||||||
8,606 | Expedia, Inc., Class A | 996,317 | ||||||
3,946 | Extended Stay America, Inc. | 61,755 | ||||||
10,372 | GoPro, Inc., Class A(b) | 131,102 | ||||||
46,885 | Groupon, Inc. (b) | 169,724 | ||||||
8,471 | Hilton Worldwide Holdings, Inc. | 186,785 | ||||||
22,183 | Lions Gate Entertainment Corp. | 492,462 | ||||||
11,242 | Lululemon Athletica, Inc.(b) | 736,913 | ||||||
1,415 | Marriott International, Inc., Class A | 99,177 | ||||||
2,370 | Nordstrom, Inc. | 121,178 | ||||||
569 | NVR, Inc.(b) | 945,274 | ||||||
4,229 | O’Reilly Automotive, Inc.(b) | 1,110,874 | ||||||
7,686 | Polaris Industries, Inc. | 752,306 | ||||||
6,870 | Ross Stores, Inc. | 390,079 | ||||||
12,037 | Scripps Networks Interactive, Inc., Class A | 750,507 | ||||||
24,141 | Six Flags Entertainment Corp. | 1,449,667 | ||||||
18,709 | Tempur Sealy International, Inc.(b) | 1,135,075 | ||||||
9,746 | Tractor Supply Co. | 922,556 | ||||||
9,970 | TripAdvisor, Inc., Class A(b) | 643,962 | ||||||
7,855 | Ulta Salon, Cosmetics & Fragrance, Inc.(b) | 1,636,039 | ||||||
14,656 | Under Armour, Inc., Class A(b) | 643,985 | ||||||
14,656 | Under Armour, Inc., Class C(b) | 597,965 | ||||||
1,211 | Williams-Sonoma, Inc. | 71,182 | ||||||
1,827 | Wyndham Worldwide Corp. | 129,626 | ||||||
|
| |||||||
17,563,161 | ||||||||
|
| |||||||
Consumer Staples—2.5% | ||||||||
1,513 | Hain Celestial Group, Inc. (The)(b) | 63,334 | ||||||
792 | Mead Johnson Nutrition Co. | 69,023 | ||||||
7,297 | Monster Beverage Corp.(b) | 1,052,373 | ||||||
17,120 | Sprouts Farmers Market, Inc.(b) | 480,559 | ||||||
|
| |||||||
1,665,289 | ||||||||
|
| |||||||
Energy—0.7% | ||||||||
36,961 | Memorial Resource Development Corp.(b) | 483,450 | ||||||
|
| |||||||
Financials—6.4% | ||||||||
1,940 | Affiliated Managers Group, Inc.(b) | 330,421 | ||||||
21,580 | CBRE Group, Inc., Class A(b) | 639,415 | ||||||
1,697 | Credit Acceptance Corp.(b)(c) | 333,070 | ||||||
1,531 | Crown Castle International Corp. REIT | 133,013 | ||||||
620 | Eaton Vance Corp. | 21,409 | ||||||
3,719 | Equinix, Inc. REIT | 1,228,572 | ||||||
5,397 | Extra Space Storage, Inc. REIT | 458,475 | ||||||
103 | FactSet Research Systems, Inc. | 15,527 | ||||||
33,452 | LendingClub Corp.(b) | 264,271 | ||||||
240 | Moody’s Corp. | 22,973 | ||||||
872 | MSCI, Inc. | 66,220 | ||||||
30,160 | NorthStar Asset Management Group, Inc. | 375,190 | ||||||
6,510 | SEI Investments Co. | 313,001 | ||||||
3,001 | Tanger Factory Outlet Centers, Inc. REIT | 105,275 | ||||||
|
| |||||||
4,306,832 | ||||||||
|
|
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Health Care—18.5% | ||||||||
2,439 | Agios Pharmaceuticals, Inc.(b) | $ | 119,389 | |||||
27,807 | Akorn, Inc.(b) | 707,688 | ||||||
14,021 | Align Technology, Inc.(b) | 1,012,176 | ||||||
7,607 | AmerisourceBergen Corp. | 647,356 | ||||||
1,594 | Bluebird Bio, Inc.(b) | 70,694 | ||||||
10,657 | Centene Corp.(b) | 660,308 | ||||||
17,416 | Cerner Corp.(b) | 977,734 | ||||||
4,743 | DexCom, Inc.(b) | 305,354 | ||||||
13,353 | Edwards Lifesciences Corp.(b) | 1,418,222 | ||||||
2,606 | Envision Healthcare Holdings, Inc.(b) | 58,974 | ||||||
1,900 | IDEXX Laboratories, Inc.(b) | 160,265 | ||||||
2,542 | IMS Health Holdings, Inc.(b) | 67,719 | ||||||
4,269 | Incyte Corp.(b) | 308,520 | ||||||
1,520 | Inovalon Holdings, Inc., Class A(b) | 25,992 | ||||||
1,220 | Intercept Pharmaceuticals, Inc.(b) | 183,903 | ||||||
5,513 | Intrexon Corp.(b) | 147,362 | ||||||
133 | Intuitive Surgical, Inc.(b) | 83,306 | ||||||
3,736 | Ionis Pharmaceuticals, Inc.(b) | 153,064 | ||||||
6,821 | Jazz Pharmaceuticals PLC(b) | 1,027,925 | ||||||
5,854 | Juno Therapeutics, Inc.(b) | 246,395 | ||||||
3,685 | Medivation, Inc.(b) | 212,993 | ||||||
1,644 | Mettler-Toledo International, Inc.(b) | 588,470 | ||||||
36,853 | OPKO Health, Inc.(b) | 396,170 | ||||||
1,632 | Puma Biotechnology, Inc.(b) | 50,086 | ||||||
13,673 | Seattle Genetics, Inc.(b) | 485,118 | ||||||
20,987 | Tenet Healthcare Corp.(b) | 665,078 | ||||||
6,662 | United Therapeutics Corp.(b) | 700,842 | ||||||
32,461 | Veeva Systems, Inc., Class A(b) | 893,002 | ||||||
|
| |||||||
12,374,105 | ||||||||
|
| |||||||
Industrials—12.7% | ||||||||
3,082 | Acuity Brands, Inc. | 751,669 | ||||||
11,494 | Avis Budget Group, Inc.(b) | 288,499 | ||||||
1,779 | B/E Aerospace, Inc. | 86,513 | ||||||
2,032 | C.H. Robinson Worldwide, Inc. | 144,211 | ||||||
4,517 | Cintas Corp. | 405,536 | ||||||
12,805 | Fastenal Co. | 599,146 | ||||||
6,053 | J.B. Hunt Transport Services, Inc. | 501,673 | ||||||
2,510 | Landstar System, Inc. | 164,531 | ||||||
8,916 | Middleby Corp. (The)(b) | 977,550 | ||||||
6,525 | Nordson Corp. | 500,663 | ||||||
1,343 | Old Dominion Freight Line, Inc.(b) | 88,705 | ||||||
14,598 | Robert Half International, Inc. | 559,249 | ||||||
5,288 | Spirit Airlines, Inc.(b) | 232,302 | ||||||
6,497 | Stericycle, Inc.(b) | 620,853 | ||||||
4,910 | Toro Co. (The) | 424,470 | ||||||
6,908 | United Rentals, Inc.(b) | 462,353 | ||||||
10,976 | Verisk Analytics, Inc.(b) | 851,518 | ||||||
3,369 | WABCO Holdings, Inc.(b) | 377,867 | ||||||
1,583 | Wabtec Corp. | 131,278 | ||||||
2,759 | Watsco, Inc. | 371,003 | ||||||
|
| |||||||
8,539,589 | ||||||||
|
| |||||||
Information Technology—30.0% | ||||||||
2,329 | Alliance Data Systems Corp.(b) | 473,509 | ||||||
8,571 | Amphenol Corp., Class A | 478,519 | ||||||
11,170 | Arista Networks, Inc.(b) | 744,145 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 76 |
|
PowerShares Russell Midcap Pure Growth Portfolio (PXMG) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Information Technology (continued) | ||||||||
5,505 | CDK Global, Inc. | $ | 261,873 | |||||
12,957 | CDW Corp. | 498,844 | ||||||
3,412 | Citrix Systems, Inc.(b) | 279,238 | ||||||
16,439 | Cognex Corp. | 584,078 | ||||||
1,962 | CoStar Group, Inc.(b) | 387,122 | ||||||
7,706 | F5 Networks, Inc.(b) | 807,204 | ||||||
3,352 | FireEye, Inc.(b) | 58,157 | ||||||
3,664 | Fiserv, Inc.(b) | 358,046 | ||||||
7,870 | FleetCor Technologies, Inc.(b) | 1,217,332 | ||||||
28,687 | Fortinet, Inc.(b) | 932,614 | ||||||
5,945 | Gartner, Inc.(b) | 518,226 | ||||||
19,173 | Global Payments, Inc. | 1,383,907 | ||||||
10,795 | GoDaddy, Inc., Class A(b) | 327,844 | ||||||
5,797 | IPG Photonics Corp.(b) | 502,426 | ||||||
2,449 | Jack Henry & Associates, Inc. | 198,442 | ||||||
3,962 | LinkedIn Corp., Class A(b) | 496,478 | ||||||
8,199 | Microchip Technology, Inc. | 398,389 | ||||||
13,695 | NetSuite, Inc.(b) | 1,109,843 | ||||||
5,217 | Palo Alto Networks, Inc.(b) | 787,089 | ||||||
22,918 | Rackspace Hosting, Inc.(b) | 524,135 | ||||||
14,550 | Red Hat, Inc.(b) | 1,067,534 | ||||||
32,231 | Sabre Corp. | 933,087 | ||||||
2,967 | ServiceNow, Inc.(b) | 212,081 | ||||||
10,894 | Skyworks Solutions, Inc. | 727,937 | ||||||
3,370 | Splunk, Inc.(b) | 175,173 | ||||||
3,741 | Tableau Software, Inc., Class A(b) | 193,410 | ||||||
20,254 | Twitter, Inc.(b) | 296,113 | ||||||
7,525 | Ultimate Software Group, Inc. (The)(b) | 1,479,340 | ||||||
10,793 | Vantiv, Inc., Class A(b) | 588,650 | ||||||
9,169 | VeriFone Systems, Inc.(b) | 260,950 | ||||||
2,877 | Workday, Inc., Class A(b) | 215,717 | ||||||
2,037 | Yelp, Inc., Class A(b) | 42,777 | ||||||
9,362 | Zebra Technologies Corp., Class A(b) | 585,687 | ||||||
|
| |||||||
20,105,916 | ||||||||
|
| |||||||
Materials—3.1% | ||||||||
9,918 | Axalta Coating Systems Ltd.(b) | 282,365 | ||||||
4,928 | Eagle Materials, Inc. | 365,263 | ||||||
3,674 | Sealed Air Corp. | 174,001 | ||||||
1,783 | Sherwin-Williams Co. (The) | 512,274 | ||||||
6,656 | Valspar Corp. (The) | 710,129 | ||||||
|
| |||||||
2,044,032 | ||||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $74,058,266) | 67,082,374 | |||||||
|
| |||||||
Money Market Fund—0.0% | ||||||||
1,091 | Invesco Premier Portfolio—Institutional Class, 0.39%(d) (Cost $1,091) | 1,091 | ||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $74,059,357)—100.1% | 67,083,465 | |||||||
|
| |||||||
Number of Shares | Value | |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—0.3% | ||||||||
196,587 | Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(d)(e) (Cost $196,587) | $ | 196,587 | |||||
|
| |||||||
Total Investments (Cost $74,255,944)—100.4% | 67,280,052 | |||||||
Other assets less liabilities—(0.4)% | (265,058 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 67,014,994 | ||||||
|
|
Investment Abbreviations:
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | Non-income producing security. |
(c) | All or a portion of this security was out on loan at April 30, 2016. |
(d) | The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
(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. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 77 |
|
Schedule of Investments(a)
PowerShares Russell Midcap Pure Value Portfolio (PXMV)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.0% | ||||||||
Consumer Discretionary—2.5% | ||||||||
21 | Cable One, Inc. | $ | 9,638 | |||||
21 | Graham Holdings Co., Class B | 10,007 | ||||||
19,943 | J.C. Penney Co., Inc.(b)(c) | 185,071 | ||||||
3,222 | John Wiley & Sons, Inc., Class A | 159,779 | ||||||
44,854 | Staples, Inc. | 457,511 | ||||||
5,977 | Tribune Media Co., Class A | 230,413 | ||||||
18,525 | Wendy’s Co. (The) | 201,182 | ||||||
|
| |||||||
1,253,601 | ||||||||
|
| |||||||
Consumer Staples—1.3% | ||||||||
6,722 | Molson Coors Brewing Co., Class B | 642,825 | ||||||
|
| |||||||
Energy—10.6% | ||||||||
8,556 | California Resources Corp. | 18,823 | ||||||
5,550 | Cheniere Energy, Inc.(c) | 215,784 | ||||||
4,626 | Columbia Pipeline Group, Inc. | 118,518 | ||||||
22,098 | CONSOL Energy, Inc.(b) | 332,575 | ||||||
25,152 | Diamond Offshore Drilling, Inc. | 610,187 | ||||||
5,979 | Energen Corp. | 254,048 | ||||||
5,844 | EP Energy Corp., Class A(b)(c) | 28,694 | ||||||
13,114 | Golar LNG Ltd. (Bermuda)(b) | 217,430 | ||||||
11,487 | Hess Corp. | 684,855 | ||||||
4,944 | Laredo Petroleum, Inc.(c) | 60,218 | ||||||
26,921 | Marathon Oil Corp. | 379,317 | ||||||
12,770 | Murphy Oil Corp. | 456,400 | ||||||
19,541 | Newfield Exploration Co.(c) | 708,361 | ||||||
47,050 | Noble Corp. PLC (United Kingdom)(b) | 528,371 | ||||||
20,312 | QEP Resources, Inc. | 364,194 | ||||||
51,771 | Seadrill Ltd. (United Kingdom)(b)(c) | 247,465 | ||||||
2,074 | Southwestern Energy Co.(c) | 27,854 | ||||||
4,136 | Weatherford International PLC(c) | 33,626 | ||||||
6,019 | WPX Energy, Inc.(c) | 58,144 | ||||||
|
| |||||||
5,344,864 | ||||||||
|
| |||||||
Financials—41.2% | ||||||||
189 | Alexandria Real Estate Equities, Inc. REIT | 17,568 | ||||||
25,219 | American Capital Agency Corp. REIT | 463,273 | ||||||
28,115 | American Homes 4 Rent, Class A REIT | 444,779 | ||||||
448 | American National Insurance Co. | 52,022 | ||||||
59,073 | Annaly Capital Management, Inc. REIT | 615,541 | ||||||
528 | Arch Capital Group Ltd. (Bermuda)(c) | 37,219 | ||||||
7,842 | Associated Banc-Corp. | 143,038 | ||||||
257 | AvalonBay Communities, Inc. REIT | 45,435 | ||||||
1,226 | Bank of Hawaii Corp. | 83,871 | ||||||
7,582 | BOK Financial Corp.(b) | 456,285 | ||||||
15,043 | Brandywine Realty Trust REIT | 224,893 | ||||||
1,324 | Camden Property Trust REIT | 106,886 | ||||||
22,899 | CBL & Associates Properties, Inc. REIT | 267,460 | ||||||
10,365 | Cincinnati Financial Corp. | 684,194 | ||||||
11,132 | CIT Group, Inc. | 384,833 | ||||||
9,725 | CNA Financial Corp. | 307,310 | ||||||
11,773 | Comerica, Inc. | 522,721 | ||||||
9,178 | Commerce Bancshares, Inc. | 429,714 | ||||||
2,996 | Corrections Corp. of America REIT | 91,138 | ||||||
2,995 | Cullen/Frost Bankers, Inc. | 191,650 | ||||||
23,123 | DDR Corp. REIT | 404,652 | ||||||
17,787 | Duke Realty Corp. REIT | 389,002 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
2,845 | E*TRADE Financial Corp.(c) | $ | 71,637 | |||||
2,590 | East West Bancorp, Inc. | 97,099 | ||||||
7,421 | Endurance Specialty Holdings Ltd. | 474,796 | ||||||
15,623 | Equity Commonwealth REIT(c) | 436,038 | ||||||
29,036 | Fifth Third Bancorp | 531,649 | ||||||
27,623 | First Horizon National Corp. | 388,932 | ||||||
32,254 | First Niagara Financial Group, Inc. | 340,602 | ||||||
32,630 | Genworth Financial, Inc., Class A(c) | 111,921 | ||||||
459 | Hartford Financial Services Group, Inc. (The) | 20,370 | ||||||
4,870 | HCP, Inc. REIT | 164,752 | ||||||
20,134 | Host Hotels & Resorts, Inc. REIT | 318,520 | ||||||
8,482 | Liberty Property Trust REIT | 296,022 | ||||||
11,293 | Loews Corp. | 448,106 | ||||||
7,818 | M&T Bank Corp. | 925,026 | ||||||
404 | Macerich Co. (The) REIT | 30,736 | ||||||
7,038 | Mercury General Corp. | 372,310 | ||||||
25,815 | MFA Financial, Inc. REIT | 178,382 | ||||||
1,481 | Mid-America Apartment Communities, Inc. REIT | 141,746 | ||||||
11,536 | National Retail Properties, Inc. REIT | 504,815 | ||||||
7,839 | Navient Corp. | 107,159 | ||||||
32,041 | New York Community Bancorp, Inc. | 481,576 | ||||||
5,204 | NorthStar Realty Europe Corp. REIT | 62,084 | ||||||
15,733 | NorthStar Realty Finance Corp. REIT | 201,225 | ||||||
12,130 | Paramount Group, Inc. REIT | 202,571 | ||||||
5,614 | Popular, Inc. | 166,848 | ||||||
5,545 | Principal Financial Group, Inc. | 236,661 | ||||||
10,936 | ProAssurance Corp. | 521,975 | ||||||
14,066 | Prologis, Inc. REIT | 638,737 | ||||||
14,531 | Rayonier, Inc. REIT | 358,625 | ||||||
8,685 | Realty Income Corp. REIT | 514,152 | ||||||
39,412 | Regions Financial Corp. | 369,685 | ||||||
762 | Reinsurance Group of America, Inc. | 72,558 | ||||||
4,514 | RenaissanceRe Holdings Ltd. (Bermuda) | 500,648 | ||||||
13,602 | Retail Properties of America, Inc., Class A REIT | 217,496 | ||||||
4,308 | SL Green Realty Corp. REIT | 452,685 | ||||||
18,991 | Starwood Property Trust, Inc. REIT | 367,666 | ||||||
11,261 | SunTrust Banks, Inc. | 470,034 | ||||||
7,704 | UDR, Inc. REIT | 269,024 | ||||||
7,859 | Unum Group | 268,856 | ||||||
5,487 | Validus Holdings Ltd. | 252,896 | ||||||
20,134 | VEREIT, Inc. REIT | 178,790 | ||||||
949 | White Mountains Insurance Group Ltd. | 787,670 | ||||||
5,078 | WP Carey, Inc. REIT | 310,215 | ||||||
11,017 | WP GLIMCHER, Inc. REIT | 115,568 | ||||||
5,627 | XL Group PLC | 184,172 | ||||||
8,645 | Zions Bancorporation | 237,910 | ||||||
|
| |||||||
20,764,429 | ||||||||
|
| |||||||
Health Care—0.8% | ||||||||
2,964 | Bio-Rad Laboratories, Inc., Class A(c) | 420,443 | ||||||
|
| |||||||
Industrials—6.5% | ||||||||
3,324 | AGCO Corp. | 177,734 | ||||||
10,855 | Jacobs Engineering Group, Inc.(c) | 483,916 | ||||||
16,405 | Joy Global, Inc.(b) | 349,427 | ||||||
3,537 | L-3 Communications Holdings, Inc. | 465,222 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 78 |
|
PowerShares Russell Midcap Pure Value Portfolio (PXMV) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Industrials (continued) | ||||||||
1,640 | ManpowerGroup, Inc. | $ | 126,329 | |||||
9,892 | Orbital ATK, Inc. | 860,604 | ||||||
2,405 | Oshkosh Corp. | 117,484 | ||||||
6,931 | Republic Services, Inc. | 326,242 | ||||||
7,207 | SPX Corp. | 116,033 | ||||||
7,188 | SPX FLOW, Inc.(c) | 215,352 | ||||||
974 | Timken Co. (The) | 34,704 | ||||||
|
| |||||||
3,273,047 | ||||||||
|
| |||||||
Information Technology—4.9% | ||||||||
14,130 | Brocade Communications Systems, Inc. | 135,789 | ||||||
8,942 | CA, Inc. | 265,220 | ||||||
6,833 | Dolby Laboratories, Inc., Class A | 325,319 | ||||||
13,678 | First Solar, Inc.(c) | 763,780 | ||||||
13,199 | Lexmark International, Inc., Class A | 509,481 | ||||||
5,808 | Marvell Technology Group Ltd. (Bermuda) | 57,964 | ||||||
42,669 | Xerox Corp. | 409,622 | ||||||
|
| |||||||
2,467,175 | ||||||||
|
| |||||||
Materials—5.5% | ||||||||
7,218 | Albemarle Corp. | 477,543 | ||||||
3,001 | Allegheny Technologies, Inc.(b) | 49,036 | ||||||
9,356 | Cabot Corp. | 456,479 | ||||||
11,095 | Domtar Corp. | 428,711 | ||||||
11,422 | Freeport-McMoRan, Inc. | 159,908 | ||||||
18,971 | Newmont Mining Corp. | 663,416 | ||||||
28,941 | United States Steel Corp.(b) | 553,063 | ||||||
|
| |||||||
2,788,156 | ||||||||
|
| |||||||
Telecommunication Services—2.9% | ||||||||
1,205 | CenturyLink, Inc. | 37,295 | ||||||
91,043 | Frontier Communications Corp.(b) | 506,199 | ||||||
23,981 | Sprint Corp.(b)(c) | 82,255 | ||||||
11,252 | Telephone & Data Systems, Inc. | 332,722 | ||||||
11,410 | United States Cellular Corp.(c) | 486,522 | ||||||
|
| |||||||
1,444,993 | ||||||||
|
| |||||||
Utilities—23.8% | ||||||||
14,687 | AES Corp. (The) | 163,907 | ||||||
1,541 | AGL Resources, Inc. | 101,490 | ||||||
3,477 | Alliant Energy Corp. | 245,198 | ||||||
12,595 | Ameren Corp. | 604,560 | ||||||
7,767 | Atmos Energy Corp. | 563,496 | ||||||
24,024 | CenterPoint Energy, Inc. | 515,315 | ||||||
4,333 | CMS Energy Corp. | 176,266 | ||||||
9,646 | Consolidated Edison, Inc. | 719,592 | ||||||
6,768 | DTE Energy Co. | 603,435 | ||||||
10,207 | Edison International | 721,737 | ||||||
5,164 | Entergy Corp. | 388,230 | ||||||
10,013 | Eversource Energy | 565,134 | ||||||
16,412 | FirstEnergy Corp. | 534,867 | ||||||
8,997 | Great Plains Energy, Inc. | 280,976 | ||||||
13,691 | Hawaiian Electric Industries, Inc. | 447,559 | ||||||
12,022 | MDU Resources Group, Inc. | 241,161 | ||||||
6,231 | National Fuel Gas Co. | 345,820 | ||||||
4,624 | NiSource, Inc. | 105,011 | ||||||
7,189 | OGE Energy Corp. | 212,723 | ||||||
9,385 | Pinnacle West Capital Corp. | 681,820 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Utilities (continued) | ||||||||
10,021 | PPL Corp. | $ | 377,190 | |||||
9,168 | Public Service Enterprise Group, Inc. | 422,920 | ||||||
10,796 | SCANA Corp. | 741,577 | ||||||
64 | Sempra Energy | 6,614 | ||||||
22,518 | TECO Energy, Inc. | 625,325 | ||||||
300 | UGI Corp. | 12,072 | ||||||
9,760 | WEC Energy Group, Inc. | 568,130 | ||||||
6,754 | Westar Energy, Inc. | 348,574 | ||||||
16,108 | Xcel Energy, Inc. | 644,803 | ||||||
|
| |||||||
11,965,502 | ||||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $51,771,467) | 50,365,035 | |||||||
|
| |||||||
Money Market Fund—0.1% | ||||||||
40,835 | Invesco Premier Portfolio—Institutional Class, 0.39%(d) (Cost $40,835) | 40,835 | ||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $51,812,302)—100.1% | 50,405,870 | |||||||
|
| |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—4.7% | ||||||||
2,364,817 | Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(d)(e) (Cost $2,364,817) | 2,364,817 | ||||||
|
| |||||||
Total Investments (Cost $54,177,119)—104.8% | 52,770,687 | |||||||
Other assets less liabilities—(4.8)% | (2,407,091 | ) | ||||||
|
| |||||||
Net Assets-100.0% | $ | 50,363,596 | ||||||
|
|
Investment Abbreviations:
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | All or a portion of this security was out on loan at April 30, 2016. |
(c) | Non-income producing security. |
(d) | The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
(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. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 79 |
|
Schedule of Investments(a)
PowerShares Russell Top 200 Equal Weight Portfolio (EQWL)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—99.9% | ||||||||
Consumer Discretionary—14.0% | ||||||||
287 | Amazon.com, Inc.(b) | $ | 189,302 | |||||
3,394 | Carnival Corp. | 166,476 | ||||||
3,047 | CBS Corp., Class B | 170,358 | ||||||
2,769 | Comcast Corp., Class A | 168,245 | ||||||
3,501 | DISH Network Corp., Class A(b) | 172,564 | ||||||
12,712 | Ford Motor Co. | 172,375 | ||||||
5,364 | General Motors Co. | 170,575 | ||||||
1,269 | Home Depot, Inc. (The) | 169,906 | ||||||
4,359 | Johnson Controls, Inc. | 180,463 | ||||||
3,204 | Las Vegas Sands Corp. | 144,661 | ||||||
2,218 | Lowe’s Cos., Inc. | 168,612 | ||||||
1,351 | McDonald’s Corp. | 170,888 | ||||||
1,644 | Netflix, Inc.(b) | 148,009 | ||||||
2,712 | NIKE, Inc., Class B | 159,845 | ||||||
129 | Priceline Group, Inc. (The)(b) | 173,332 | ||||||
2,822 | Starbucks Corp. | 158,681 | ||||||
2,010 | Target Corp. | 159,795 | ||||||
722 | Tesla Motors, Inc.(b) | 173,829 | ||||||
4,177 | Thomson Reuters Corp. | 171,800 | ||||||
819 | Time Warner Cable, Inc. | 173,718 | ||||||
2,294 | Time Warner, Inc. | 172,371 | ||||||
2,140 | TJX Cos., Inc. (The) | 162,255 | ||||||
5,966 | Twenty-First Century Fox, Inc., Class A | 180,531 | ||||||
5,945 | Twenty-First Century Fox, Inc., Class B | 179,063 | ||||||
2,585 | VF Corp. | 162,984 | ||||||
4,122 | Viacom, Inc., Class B | 168,590 | ||||||
1,696 | Walt Disney Co. (The) | 175,129 | ||||||
2,085 | Yum! Brands, Inc. | 165,883 | ||||||
|
| |||||||
4,730,240 | ||||||||
|
| |||||||
Consumer Staples—8.8% | ||||||||
2,700 | Altria Group, Inc. | 169,317 | ||||||
4,578 | Archer-Daniels-Midland Co. | 182,845 | ||||||
3,633 | Coca-Cola Co. (The) | 162,758 | ||||||
2,380 | Colgate-Palmolive Co. | 168,790 | ||||||
1,090 | Costco Wholesale Corp. | 161,462 | ||||||
1,634 | CVS Health Corp. | 164,217 | ||||||
1,777 | Estee Lauder Cos., Inc. (The), Class A | 170,361 | ||||||
2,689 | General Mills, Inc. | 164,943 | ||||||
1,239 | Kimberly-Clark Corp. | 155,110 | ||||||
2,140 | Kraft Heinz Co. (The) | 167,070 | ||||||
4,372 | Kroger Co. (The) | 154,725 | ||||||
4,219 | Mondelez International, Inc., Class A | 181,248 | ||||||
1,648 | PepsiCo, Inc. | 169,678 | ||||||
1,700 | Philip Morris International, Inc. | 166,804 | ||||||
2,014 | Procter & Gamble Co. (The) | 161,362 | ||||||
3,298 | Reynolds American, Inc. | 163,581 | ||||||
2,010 | Walgreens Boots Alliance, Inc. | 159,353 | ||||||
2,442 | Wal-Mart Stores, Inc. | 163,297 | ||||||
|
| |||||||
2,986,921 | ||||||||
|
| |||||||
Energy—9.2% | ||||||||
3,646 | Anadarko Petroleum Corp. | 192,363 | ||||||
3,437 | Apache Corp. | 186,973 | ||||||
3,793 | Baker Hughes, Inc. | 183,430 | ||||||
1,758 | Chevron Corp. | 179,632 | ||||||
4,193 | ConocoPhillips | 200,384 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Energy (continued) | ||||||||
6,439 | Devon Energy Corp. | $ | 223,305 | |||||
2,233 | EOG Resources, Inc. | 184,490 | ||||||
1,976 | Exxon Mobil Corp. | 174,678 | ||||||
4,742 | Halliburton Co. | 195,892 | ||||||
9,343 | Kinder Morgan, Inc. | 165,932 | ||||||
4,499 | Marathon Petroleum Corp. | 175,821 | ||||||
2,446 | Occidental Petroleum Corp. | 187,486 | ||||||
1,902 | Phillips 66 | 156,173 | ||||||
2,286 | Schlumberger Ltd. | 183,657 | ||||||
5,470 | Spectra Energy Corp. | 171,047 | ||||||
2,551 | Valero Energy Corp. | 150,177 | ||||||
10,990 | Williams Cos., Inc. (The) | 213,096 | ||||||
|
| |||||||
3,124,536 | ||||||||
|
| |||||||
Financials—15.8% | ||||||||
2,635 | Aflac, Inc. | 181,736 | ||||||
2,490 | Allstate Corp. (The) | 161,974 | ||||||
2,761 | American Express Co. | 180,652 | ||||||
3,116 | American International Group, Inc. | 173,935 | ||||||
1,660 | American Tower Corp. REIT | 174,101 | ||||||
12,217 | Bank of America Corp. | 177,880 | ||||||
4,456 | Bank of New York Mellon Corp. (The) | 179,309 | ||||||
4,958 | BB&T Corp. | 175,414 | ||||||
1,178 | Berkshire Hathaway, Inc., Class B(b) | 171,375 | ||||||
494 | BlackRock, Inc. | 176,027 | ||||||
2,405 | Capital One Financial Corp. | 174,098 | ||||||
5,924 | Charles Schwab Corp. (The) | 168,301 | ||||||
1,396 | Chubb Ltd. | 164,533 | ||||||
3,969 | Citigroup, Inc. | 183,685 | ||||||
1,747 | CME Group, Inc., Class A | 160,567 | ||||||
3,376 | Discover Financial Services | 189,968 | ||||||
2,258 | Equity Residential REIT | 153,702 | ||||||
4,342 | Franklin Resources, Inc. | 162,130 | ||||||
1,081 | Goldman Sachs Group, Inc. (The) | 177,403 | ||||||
2,801 | JPMorgan Chase & Co. | 177,023 | ||||||
2,771 | Marsh & McLennan Cos., Inc. | 174,989 | ||||||
3,869 | MetLife, Inc. | 174,492 | ||||||
6,731 | Morgan Stanley | 182,141 | ||||||
1,961 | PNC Financial Services Group, Inc. (The) | 172,137 | ||||||
2,311 | Prudential Financial, Inc. | 179,426 | ||||||
617 | Public Storage REIT | 151,048 | ||||||
820 | Simon Property Group, Inc. REIT | 164,959 | ||||||
2,848 | State Street Corp. | 177,430 | ||||||
1,432 | Travelers Cos., Inc. (The) | 157,377 | ||||||
4,089 | U.S. Bancorp | 174,559 | ||||||
3,417 | Wells Fargo & Co. | 170,782 | ||||||
|
| |||||||
5,343,153 | ||||||||
|
| |||||||
Health Care—16.2% | ||||||||
4,071 | Abbott Laboratories | 158,362 | ||||||
2,966 | AbbVie, Inc. | 180,926 | ||||||
1,485 | Aetna, Inc. | 166,721 | ||||||
1,256 | Alexion Pharmaceuticals, Inc.(b) | 174,936 | ||||||
603 | Allergan PLC(b) | 130,586 | ||||||
1,121 | Amgen, Inc. | 177,454 | ||||||
1,192 | Anthem, Inc. | 167,798 | ||||||
4,181 | Baxalta, Inc. | 175,393 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 80 |
|
PowerShares Russell Top 200 Equal Weight Portfolio (EQWL) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Health Care (continued) | ||||||||
4,110 | Baxter International, Inc. | $ | 181,744 | |||||
1,116 | Becton, Dickinson and Co. | 179,966 | ||||||
661 | Biogen, Inc.(b) | 181,768 | ||||||
2,651 | Bristol-Myers Squibb Co. | 191,349 | ||||||
2,060 | Cardinal Health, Inc. | 161,628 | ||||||
1,677 | Celgene Corp.(b) | 173,418 | ||||||
1,209 | Cigna Corp. | 167,495 | ||||||
2,356 | Eli Lilly & Co. | 177,949 | ||||||
2,459 | Express Scripts Holding Co.(b) | 181,302 | ||||||
1,800 | Gilead Sciences, Inc. | 158,778 | ||||||
2,177 | HCA Holdings, Inc.(b) | 175,510 | ||||||
909 | Humana, Inc. | 160,957 | ||||||
1,094 | Illumina, Inc.(b) | 147,679 | ||||||
1,538 | Johnson & Johnson | 172,379 | ||||||
1,063 | McKesson Corp. | 178,393 | ||||||
2,250 | Medtronic PLC | 178,087 | ||||||
3,150 | Merck & Co., Inc. | 172,746 | ||||||
3,681 | Mylan NV(b) | 153,534 | ||||||
5,587 | Pfizer, Inc. | 182,751 | ||||||
457 | Regeneron Pharmaceuticals, Inc.(b) | 172,156 | ||||||
1,584 | Stryker Corp. | 172,672 | ||||||
1,201 | Thermo Fisher Scientific, Inc. | 173,244 | ||||||
1,291 | UnitedHealth Group, Inc. | 169,999 | ||||||
2,115 | Vertex Pharmaceuticals, Inc.(b) | 178,379 | ||||||
|
| |||||||
5,476,059 | ||||||||
|
| |||||||
Industrials—12.1% | ||||||||
1,001 | 3M Co. | 167,547 | ||||||
4,068 | American Airlines Group, Inc. | 141,119 | ||||||
1,267 | Boeing Co. (The) | 170,792 | ||||||
2,209 | Caterpillar, Inc. | 171,683 | ||||||
6,495 | CSX Corp. | 177,119 | ||||||
1,535 | Cummins, Inc. | 179,641 | ||||||
1,752 | Danaher Corp. | 169,506 | ||||||
2,076 | Deere & Co. | 174,612 | ||||||
3,452 | Delta Air Lines, Inc. | 143,845 | ||||||
2,663 | Eaton Corp. PLC | 168,488 | ||||||
3,063 | Emerson Electric Co. | 167,332 | ||||||
1,026 | FedEx Corp. | 169,403 | ||||||
1,272 | General Dynamics Corp. | 178,741 | ||||||
5,284 | General Electric Co. | 162,483 | ||||||
1,491 | Honeywell International, Inc. | 170,377 | ||||||
1,641 | Illinois Tool Works, Inc. | 171,517 | ||||||
759 | Lockheed Martin Corp. | 176,376 | ||||||
2,035 | Norfolk Southern Corp. | 183,374 | ||||||
854 | Northrop Grumman Corp. | 176,146 | ||||||
1,360 | Raytheon Co. | 171,836 | ||||||
2,112 | Union Pacific Corp. | 184,230 | ||||||
1,584 | United Parcel Service, Inc., Class B | 166,431 | ||||||
1,682 | United Technologies Corp. | 175,550 | ||||||
2,802 | Waste Management, Inc. | 164,730 | ||||||
|
| |||||||
4,082,878 | ||||||||
|
| |||||||
Information Technology—13.7% | ||||||||
1,457 | Accenture PLC, Class A | 164,524 | ||||||
1,801 | Adobe Systems, Inc.(b) | 169,690 | ||||||
221 | Alphabet, Inc., Class A(b) | 156,442 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Information Technology (continued) | ||||||||
227 | Alphabet, Inc., Class C(b) | $ | 157,313 | |||||
1,582 | Apple, Inc. | 148,297 | ||||||
1,884 | Automatic Data Processing, Inc. | 166,621 | ||||||
1,087 | Broadcom Ltd. (Singapore) | 158,430 | ||||||
5,964 | Cisco Systems, Inc. | 163,950 | ||||||
2,765 | Cognizant Technology Solutions Corp., Class A(b) | 161,393 | ||||||
8,165 | Corning, Inc. | 152,441 | ||||||
6,899 | eBay, Inc.(b) | 168,543 | ||||||
6,263 | EMC Corp. | 163,527 | ||||||
1,464 | Facebook, Inc., Class A(b) | 172,137 | ||||||
9,503 | Hewlett Packard Enterprise Co. | 158,320 | ||||||
13,786 | HP, Inc. | 169,154 | ||||||
5,216 | Intel Corp. | 157,940 | ||||||
1,121 | International Business Machines Corp. | 163,599 | ||||||
1,824 | MasterCard, Inc., Class A | 176,910 | ||||||
16,031 | Micron Technology, Inc.(b) | 172,333 | ||||||
3,108 | Microsoft Corp. | 154,996 | ||||||
4,096 | Oracle Corp. | 163,267 | ||||||
4,295 | PayPal Holdings, Inc.(b) | 168,278 | ||||||
3,315 | QUALCOMM, Inc. | 167,474 | ||||||
2,313 | salesforce.com, inc.(b) | 175,325 | ||||||
2,944 | Texas Instruments, Inc. | 167,926 | ||||||
2,246 | Visa, Inc., Class A | 173,481 | ||||||
3,257 | VMware, Inc., Class A(b) | 185,356 | ||||||
4,723 | Yahoo!, Inc.(b) | 172,862 | ||||||
|
| |||||||
4,630,529 | ||||||||
|
| |||||||
Materials—5.2% | ||||||||
1,163 | Air Products & Chemicals, Inc. | 169,670 | ||||||
23,772 | Chemours Co. (The) | 216,801 | ||||||
3,227 | Dow Chemical Co. (The) | 169,772 | ||||||
2,592 | E.I. du Pont de Nemours & Co. | 170,839 | ||||||
1,504 | Ecolab, Inc. | 172,930 | ||||||
1,955 | LyondellBasell Industries NV, Class A | 161,620 | ||||||
1,836 | Monsanto Co. | 171,996 | ||||||
1,521 | PPG Industries, Inc. | 167,903 | ||||||
1,480 | Praxair, Inc. | 173,841 | ||||||
5,996 | Southern Copper Corp. (Peru) | 177,901 | ||||||
|
| |||||||
1,753,273 | ||||||||
|
| |||||||
Telecommunication Services—1.5% | ||||||||
4,258 | AT&T, Inc. | 165,296 | ||||||
4,493 | T-Mobile US, Inc.(b) | 176,485 | ||||||
3,116 | Verizon Communications, Inc. | 158,729 | ||||||
|
| |||||||
500,510 | ||||||||
|
| |||||||
Utilities—3.4% | ||||||||
2,560 | American Electric Power Co., Inc. | 162,560 | ||||||
2,275 | Dominion Resources, Inc. | 162,594 | ||||||
2,094 | Duke Energy Corp. | 164,965 | ||||||
4,733 | Exelon Corp. | 166,081 | ||||||
1,415 | NextEra Energy, Inc. | 166,376 | ||||||
2,844 | PG&E Corp. | 165,521 | ||||||
3,289 | Southern Co. (The) | 164,779 | ||||||
|
| |||||||
1,152,876 | ||||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $33,810,549) | 33,780,975 | |||||||
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 81 |
|
PowerShares Russell Top 200 Equal Weight Portfolio (EQWL) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Money Market Fund—0.1% | ||||||||
38,817 | Invesco Premier Portfolio—Institutional Class, 0.39%(c) (Cost $38,817) | $ | 38,817 | |||||
|
| |||||||
Total Investments (Cost $33,849,366)—100.0% | 33,819,792 | |||||||
Other assets less liabilities—(0.0)% | (15,105 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 33,804,687 | ||||||
|
|
Investment Abbreviations:
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 82 |
|
Schedule of Investments(a)
PowerShares Russell Top 200 Pure Growth Portfolio (PXLG)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.0% | ||||||||
Consumer Discretionary—31.5% | ||||||||
7,714 | Amazon.com, Inc.(b) | $ | 5,088,077 | |||||
22,591 | CBS Corp., Class B | 1,263,063 | ||||||
27,117 | Home Depot, Inc. (The) | 3,630,695 | ||||||
16,655 | Las Vegas Sands Corp. | 751,973 | ||||||
59,130 | Lowe’s Cos., Inc. | 4,495,062 | ||||||
4,687 | McDonald’s Corp. | 592,859 | ||||||
15,790 | Netflix, Inc.(b) | 1,421,574 | ||||||
54,131 | NIKE, Inc., Class B | 3,190,481 | ||||||
4,217 | Priceline Group, Inc. (The)(b) | 5,666,214 | ||||||
58,168 | Starbucks Corp. | 3,270,787 | ||||||
19,811 | Tesla Motors, Inc.(b) | 4,769,696 | ||||||
15,589 | Time Warner Cable, Inc. | 3,306,583 | ||||||
56,188 | TJX Cos., Inc. (The) | 4,260,174 | ||||||
25,480 | VF Corp. | 1,606,514 | ||||||
28,713 | Viacom, Inc., Class B | 1,174,362 | ||||||
10,149 | Walt Disney Co. (The) | 1,047,986 | ||||||
27,270 | Yum! Brands, Inc. | 2,169,601 | ||||||
|
| |||||||
47,705,701 | ||||||||
|
| |||||||
Consumer Staples—6.4% | ||||||||
29,010 | Coca-Cola Co. (The) | 1,299,648 | ||||||
15,340 | Costco Wholesale Corp. | 2,272,314 | ||||||
12,939 | Estee Lauder Cos., Inc. (The), Class A | 1,240,462 | ||||||
449 | General Mills, Inc. | 27,542 | ||||||
651 | Kraft Heinz Co. (The) | 50,824 | ||||||
86,186 | Kroger Co. (The) | 3,050,122 | ||||||
13,466 | PepsiCo, Inc. | 1,386,459 | ||||||
6,957 | Reynolds American, Inc. | 345,067 | ||||||
|
| |||||||
9,672,438 | ||||||||
|
| |||||||
Energy—0.3% | ||||||||
25,448 | Williams Cos., Inc. (The) | 493,437 | ||||||
|
| |||||||
Financials—4.6% | ||||||||
52,224 | American Tower Corp. REIT | 5,477,253 | ||||||
6,971 | Simon Property Group, Inc. REIT | 1,402,356 | ||||||
|
| |||||||
6,879,609 | ||||||||
|
| |||||||
Health Care—20.9% | ||||||||
62,301 | AbbVie, Inc. | 3,800,361 | ||||||
12,946 | Alexion Pharmaceuticals, Inc.(b) | 1,803,119 | ||||||
11,214 | Amgen, Inc. | 1,775,176 | ||||||
7,866 | Becton, Dickinson and Co. | 1,268,471 | ||||||
12,157 | Biogen, Inc.(b) | 3,343,053 | ||||||
4,483 | Bristol-Myers Squibb Co. | 323,583 | ||||||
42,727 | Celgene Corp.(b) | 4,418,399 | ||||||
1,117 | Cigna Corp. | 154,749 | ||||||
1,116 | Eli Lilly & Co. | 84,292 | ||||||
43,581 | Gilead Sciences, Inc. | 3,844,280 | ||||||
23,827 | Illumina, Inc.(b) | 3,216,407 | ||||||
11,828 | McKesson Corp. | 1,984,975 | ||||||
9,685 | Regeneron Pharmaceuticals, Inc.(b) | 3,648,436 | ||||||
23,199 | Vertex Pharmaceuticals, Inc.(b) | 1,956,604 | ||||||
|
| |||||||
31,621,905 | ||||||||
|
| |||||||
Industrials—4.5% | ||||||||
7,970 | 3M Co. | 1,334,019 | ||||||
33,678 | American Airlines Group, Inc. | 1,168,290 | ||||||
4,145 | Boeing Co. (The) | 558,746 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Industrials (continued) | ||||||||
6,411 | Delta Air Lines, Inc. | $ | 267,146 | |||||
1,565 | Honeywell International, Inc. | 178,833 | ||||||
3,281 | Illinois Tool Works, Inc. | 342,930 | ||||||
21,696 | Union Pacific Corp. | 1,892,542 | ||||||
10,635 | United Parcel Service, Inc., Class B | 1,117,419 | ||||||
|
| |||||||
6,859,925 | ||||||||
|
| |||||||
Information Technology—26.5% | ||||||||
11,693 | Accenture PLC, Class A | 1,320,373 | ||||||
32,867 | Adobe Systems, Inc.(b) | 3,096,729 | ||||||
843 | Alphabet, Inc., Class C(b) | 584,207 | ||||||
34,547 | Apple, Inc. | 3,238,436 | ||||||
25,505 | Broadcom Ltd. (Singapore) | 3,717,354 | ||||||
74,956 | Cognizant Technology Solutions Corp., Class A(b) | 4,375,182 | ||||||
304 | eBay, Inc.(b) | 7,427 | ||||||
47,120 | Facebook, Inc., Class A(b) | 5,540,369 | ||||||
53,123 | MasterCard, Inc., Class A | 5,152,400 | ||||||
304 | PayPal Holdings, Inc.(b) | 11,911 | ||||||
68,261 | salesforce.com, inc.(b) | 5,174,184 | ||||||
13,068 | Texas Instruments, Inc. | 745,399 | ||||||
63,288 | Visa, Inc., Class A | 4,888,365 | ||||||
39,843 | VMware, Inc., Class A(b) | 2,267,465 | ||||||
|
| |||||||
40,119,801 | ||||||||
|
| |||||||
Materials—5.3% | ||||||||
30,420 | Ecolab, Inc. | 3,497,692 | ||||||
3,282 | LyondellBasell Industries NV, Class A | 271,323 | ||||||
18,919 | Monsanto Co. | 1,772,332 | ||||||
22,354 | PPG Industries, Inc. | 2,467,658 | ||||||
|
| |||||||
8,009,005 | ||||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $152,652,809) | 151,361,821 | |||||||
|
| |||||||
Money Market Fund—0.0% | ||||||||
49,276 | Invesco Premier Portfolio—Institutional Class, 0.39%(c) (Cost $49,276) | 49,276 | ||||||
|
| |||||||
Total Investments (Cost $152,702,085)—100.0% | 151,411,097 | |||||||
Other assets less liabilities—0.0% | 3,665 | |||||||
|
| |||||||
Net Assets—100.0% | $ | 151,414,762 | ||||||
|
|
Investment Abbreviations:
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 83 |
|
Schedule of Investments(a)
PowerShares Russell Top 200 Pure Value Portfolio (PXLV)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.0% | ||||||||
Consumer Discretionary—3.2% | ||||||||
23,934 | Carnival Corp. | $ | 1,173,963 | |||||
7,221 | Ford Motor Co. | 97,917 | ||||||
17,139 | General Motors Co. | 545,020 | ||||||
8,797 | Thomson Reuters Corp. | 361,820 | ||||||
|
| |||||||
2,178,720 | ||||||||
|
| |||||||
Consumer Staples—5.2% | ||||||||
29,078 | Archer-Daniels-Midland Co. | 1,161,375 | ||||||
23,115 | Mondelez International, Inc., Class A | 993,020 | ||||||
10,897 | Procter & Gamble Co. (The) | 873,068 | ||||||
7,157 | Wal-Mart Stores, Inc. | 478,589 | ||||||
|
| |||||||
3,506,052 | ||||||||
|
| |||||||
Energy—20.7% | ||||||||
7,719 | Anadarko Petroleum Corp. | 407,255 | ||||||
40,510 | Apache Corp. | 2,203,744 | ||||||
16,690 | Baker Hughes, Inc. | 807,128 | ||||||
18,896 | Chevron Corp. | 1,930,793 | ||||||
33,817 | ConocoPhillips | 1,616,114 | ||||||
11,818 | Devon Energy Corp. | 409,848 | ||||||
21,616 | Exxon Mobil Corp. | 1,910,854 | ||||||
2,795 | Halliburton Co. | 115,462 | ||||||
19,527 | Kinder Morgan, Inc. | 346,800 | ||||||
28,706 | Occidental Petroleum Corp. | 2,200,315 | ||||||
8,927 | Phillips 66 | 732,996 | ||||||
18,098 | Spectra Energy Corp. | 565,925 | ||||||
14,592 | Valero Energy Corp. | 859,031 | ||||||
|
| |||||||
14,106,265 | ||||||||
|
| |||||||
Financials—36.2% | ||||||||
18,394 | Aflac, Inc. | 1,268,634 | ||||||
18,669 | Allstate Corp. (The) | 1,214,418 | ||||||
20,372 | American International Group, Inc. | 1,137,165 | ||||||
43,205 | Bank of America Corp. | 629,065 | ||||||
44,944 | BB&T Corp. | 1,590,119 | ||||||
20,708 | Capital One Financial Corp. | 1,499,052 | ||||||
18,966 | Chubb Ltd. | 2,235,333 | ||||||
15,476 | Citigroup, Inc. | 716,229 | ||||||
10,681 | CME Group, Inc., Class A | 981,691 | ||||||
4,133 | Discover Financial Services | 232,564 | ||||||
22,052 | Equity Residential REIT | 1,501,080 | ||||||
1,838 | Franklin Resources, Inc. | 68,631 | ||||||
8,470 | Goldman Sachs Group, Inc. (The) | 1,390,012 | ||||||
12,111 | JPMorgan Chase & Co. | 765,415 | ||||||
39,860 | MetLife, Inc. | 1,797,686 | ||||||
12,049 | Morgan Stanley | 326,046 | ||||||
22,158 | PNC Financial Services Group, Inc. (The) | 1,945,029 | ||||||
9,580 | Prudential Financial, Inc. | 743,791 | ||||||
14,129 | State Street Corp. | 880,237 | ||||||
8,611 | Travelers Cos., Inc. (The) | 946,349 | ||||||
32,444 | U.S. Bancorp | 1,385,034 | ||||||
27,388 | Wells Fargo & Co. | 1,368,852 | ||||||
|
| |||||||
24,622,432 | ||||||||
|
| |||||||
Health Care—2.1% | ||||||||
7,085 | Abbott Laboratories | 275,606 | ||||||
1,058 | Medtronic PLC | 83,741 | ||||||
32,828 | Pfizer, Inc. | 1,073,804 | ||||||
|
| |||||||
1,433,151 | ||||||||
|
|
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Industrials—6.6% | ||||||||
18,850 | Eaton Corp. PLC | $ | 1,192,639 | |||||
77,545 | General Electric Co. | 2,384,509 | ||||||
6,171 | Norfolk Southern Corp. | 556,069 | ||||||
2,525 | Raytheon Co. | 319,034 | ||||||
|
| |||||||
4,452,251 | ||||||||
|
| |||||||
Information Technology—7.0% | ||||||||
15,800 | Cisco Systems, Inc. | 434,342 | ||||||
38,866 | Corning, Inc. | 725,628 | ||||||
52,636 | Hewlett Packard Enterprise Co. | 876,916 | ||||||
52,636 | HP, Inc. | 645,844 | ||||||
56,875 | Yahoo!, Inc.(b) | 2,081,625 | ||||||
|
| |||||||
4,764,355 | ||||||||
|
| |||||||
Telecommunication Services—2.9% | ||||||||
43,294 | AT&T, Inc. | 1,680,673 | ||||||
7,251 | T-Mobile US, Inc.(b) | 284,819 | ||||||
|
| |||||||
1,965,492 | ||||||||
|
| |||||||
Utilities—16.1% | ||||||||
34,115 | American Electric Power Co., Inc. | 2,166,303 | ||||||
26,996 | Duke Energy Corp. | 2,126,745 | ||||||
41,826 | Exelon Corp. | 1,467,674 | ||||||
10,887 | NextEra Energy, Inc. | 1,280,093 | ||||||
33,041 | PG&E Corp. | 1,922,986 | ||||||
40,215 | Southern Co. (The) | 2,014,772 | ||||||
|
| |||||||
10,978,573 | ||||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $66,560,970) | 68,007,291 | |||||||
|
| |||||||
Money Market Fund—0.0% | ||||||||
17,752 | Invesco Premier Portfolio—Institutional Class, 0.39%(c) (Cost $17,752) | 17,752 | ||||||
|
| |||||||
Total Investments (Cost $66,578,722)-100.0% | 68,025,043 | |||||||
Other assets less liabilities—0.0% | 3,486 | |||||||
|
| |||||||
Net Assets—100.0% | $ | 68,028,529 | ||||||
|
|
Investment Abbreviations:
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 84 |
|
Schedule of Investments(a)
PowerShares Zacks Micro Cap Portfolio (PZI)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.0% | ||||||||
Consumer Discretionary—10.4% | ||||||||
1,590 | Bassett Furniture Industries, Inc. | $ | 46,921 | |||||
4,561 | Big 5 Sporting Goods Corp. | 55,142 | ||||||
11,163 | Career Education Corp.(b) | 59,610 | ||||||
542 | Cavco Industries, Inc.(b) | 47,528 | ||||||
7,983 | Century Casinos, Inc.(b) | 47,659 | ||||||
2,969 | Century Communities, Inc.(b) | 51,186 | ||||||
4,905 | del Taco Restaurants, Inc.(b) | 44,390 | ||||||
2,564 | Delta Apparel, Inc.(b) | 51,921 | ||||||
4,430 | Eldorado Resorts, Inc.(b) | 58,077 | ||||||
4,791 | Entercom Communications Corp., Class A(b) | 54,330 | ||||||
4,403 | Eros International PLC, Class A(b) | 58,912 | ||||||
1,593 | Ethan Allen Interiors, Inc. | 54,226 | ||||||
1,123 | Flexsteel Industries, Inc. | 45,919 | ||||||
3,398 | Fred’s, Inc., Class A | 49,849 | ||||||
1,929 | FTD Cos., Inc.(b) | 53,645 | ||||||
4,675 | Golden Entertainment, Inc.(b) | 56,568 | ||||||
6,678 | Green Brick Partners, Inc.(b) | 49,217 | ||||||
1,543 | Hooker Furniture Corp. | 38,266 | ||||||
6,812 | JAKKS Pacific, Inc.(b)(c) | 51,090 | ||||||
5,123 | K12, Inc.(b) | 62,962 | ||||||
4,001 | Lakeland Industries, Inc.(b) | 34,769 | ||||||
2,092 | LGI Homes, Inc.(b) | 58,597 | ||||||
10,115 | Luby’s, Inc.(b) | 50,878 | ||||||
2,716 | M/I Homes, Inc.(b) | 54,592 | ||||||
2,674 | Marcus Corp. (The) | 51,742 | ||||||
1,841 | Movado Group, Inc. | 51,935 | ||||||
854 | NACCO Industries, Inc., Class A | 50,830 | ||||||
4,134 | New Home Co., Inc. (The)(b) | 46,011 | ||||||
2,752 | Perry Ellis International, Inc.(b) | 52,426 | ||||||
5,540 | RCI Hospitality Holdings, Inc. | 56,785 | ||||||
5,821 | Red Lion Hotels Corp.(b) | 45,986 | ||||||
3,335 | Regis Corp.(b) | 45,589 | ||||||
9,419 | Ruby Tuesday, Inc.(b) | 41,444 | ||||||
7,894 | Sears Hometown and Outlet Stores, Inc.(b) | 53,442 | ||||||
7,680 | Sequential Brands Group, Inc.(b) | 42,624 | ||||||
3,600 | SodaStream International Ltd. (Israel)(b) | 49,392 | ||||||
2,295 | Superior Industries International, Inc. | 59,945 | ||||||
4,522 | Townsquare Media, Inc., Class A(b) | 48,114 | ||||||
13,503 | Trans World Entertainment Corp.(b) | 52,392 | ||||||
2,727 | WCI Communities, Inc.(b) | 43,577 | ||||||
5,576 | West Marine, Inc.(b) | 55,872 | ||||||
3,496 | William Lyon Homes, Class A(b) | 49,294 | ||||||
5,625 | ZAGG, Inc.(b) | 45,056 | ||||||
|
| |||||||
2,178,710 | ||||||||
|
| |||||||
Consumer Staples—2.2% | ||||||||
2,798 | Alliance One International, Inc.(b) | 71,377 | ||||||
5,187 | Amira Nature Foods Ltd. (United Arab Emirates)(b) | 37,606 | ||||||
3,101 | Central Garden & Pet Co.(b) | 50,453 | ||||||
3,011 | Central Garden & Pet Co., Class A(b) | 49,049 | ||||||
711 | John B. Sanfilippo & Son, Inc. | 39,340 | ||||||
2,092 | MGP Ingredients, Inc. | 55,271 | ||||||
2,991 | Omega Protein Corp.(b) | 55,603 | ||||||
1,784 | Orchids Paper Products Co. | 54,715 | ||||||
1,414 | Seneca Foods Corp., Class A(b) | 46,082 | ||||||
|
| |||||||
459,496 | ||||||||
|
|
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Energy—8.8% | ||||||||
5,997 | Ardmore Shipping Corp. (Ireland) | $ | 56,072 | |||||
8,146 | Bill Barrett Corp.(b) | 64,842 | ||||||
5,726 | Callon Petroleum Co.(b) | 60,180 | ||||||
3,569 | CARBO Ceramics, Inc. | 53,000 | ||||||
4,051 | Cone Midstream Partners LP | 57,362 | ||||||
11,088 | Dawson Geophysical Co.(b) | 56,992 | ||||||
8,797 | DHT Holdings, Inc. | 50,495 | ||||||
5,390 | Dorian LPG Ltd.(b) | 54,762 | ||||||
5,202 | GasLog Ltd. (Monaco) | 66,638 | ||||||
3,047 | GasLog Partners LP (Monaco) | 54,572 | ||||||
3,978 | Geospace Technologies Corp.(b) | 65,080 | ||||||
20,516 | Gran Tierra Energy, Inc. (Colombia)(b) | 60,727 | ||||||
8,214 | Gulfmark Offshore, Inc., Class A(b)(c) | 55,691 | ||||||
5,103 | Hornbeck Offshore Services, Inc.(b) | 59,909 | ||||||
3,091 | KNOT Offshore Partners LP (United Kingdom) | 59,347 | ||||||
2,863 | Matrix Service Co.(b) | 53,939 | ||||||
12,390 | McDermott International, Inc.(b) | 56,251 | ||||||
2,342 | Natural Gas Services Group, Inc.(b) | 53,842 | ||||||
5,089 | Navios Maritime Midstream Partners LP (Monaco) | 63,053 | ||||||
23,905 | Parker Drilling Co.(b) | 73,149 | ||||||
5,368 | Renewable Energy Group, Inc.(b) | 52,177 | ||||||
913 | REX American Resources Corp.(b) | 49,640 | ||||||
3,403 | Rice Midstream Partners LP | 56,728 | ||||||
932 | SEACOR Holdings, Inc.(b) | 54,774 | ||||||
13,809 | Teekay Tankers Ltd., Class A (Bermuda) | 54,407 | ||||||
5,886 | Tesco Corp. | 55,681 | ||||||
7,979 | TETRA Technologies, Inc.(b) | 57,449 | ||||||
1,383 | TransMontaigne Partners LP | 56,565 | ||||||
5,719 | Transocean Partners LLC | 67,599 | ||||||
8,199 | Tsakos Energy Navigation Ltd. (Greece) | 52,146 | ||||||
4,312 | USA Compression Partners LP | 58,083 | ||||||
2,654 | VTTI Energy Partners LP (United Kingdom) | 53,080 | ||||||
|
| |||||||
1,844,232 | ||||||||
|
| |||||||
Financials—48.8% | ||||||||
3,874 | 1st Constitution Bancorp(b) | 48,580 | ||||||
1,591 | 1st Source Corp. | 54,794 | ||||||
3,876 | AG Mortgage Investment Trust, Inc. REIT | 51,900 | ||||||
1,276 | Agree Realty Corp. REIT | 49,483 | ||||||
4,358 | Alcentra Capital Corp. | 51,294 | ||||||
4,224 | Altisource Residential Corp. REIT | 49,083 | ||||||
3,105 | Ambac Financial Group, Inc.(b) | 50,394 | ||||||
3,452 | American Capital Mortgage Investment Corp. REIT | 51,193 | ||||||
2,001 | American National Bankshares, Inc. | 53,487 | ||||||
1,715 | Ameris Bancorp | 53,851 | ||||||
932 | AMERISAFE, Inc. | 50,216 | ||||||
10,874 | Anworth Mortgage Asset Corp. REIT | 51,325 | ||||||
7,486 | Arbor Realty Trust, Inc. REIT | 50,006 | ||||||
4,629 | Ares Commercial Real Estate Corp. REIT | 55,548 | ||||||
4,504 | Armada Hoffler Properties, Inc. REIT | 52,697 | ||||||
2,354 | ARMOUR Residential REIT, Inc. REIT | 50,093 | ||||||
2,025 | ASB Bancorp, Inc., Class B(b) | 51,617 | ||||||
7,943 | Ashford Hospitality Trust, Inc. REIT | 44,401 | ||||||
8,130 | Atlantic Coast Financial Corp.(b) | 52,195 | ||||||
2,114 | Baldwin & Lyons, Inc., Class A | 49,785 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 85 |
|
PowerShares Zacks Micro Cap Portfolio (PZI) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
2,060 | Baldwin & Lyons, Inc., Class B | $ | 50,346 | |||||
2,803 | Banc of California, Inc. | 57,041 | ||||||
2,091 | Banco Latinoamericano de Comercio Exterior SA, Class E (Panama) | 54,073 | ||||||
7,730 | Bank of Commerce Holdings | 48,544 | ||||||
1,884 | Berkshire Hills Bancorp, Inc. | 51,132 | ||||||
5,387 | BlackRock Capital Investment Corp. | 45,305 | ||||||
2,827 | Blue Capital Reinsurance Holdings Ltd. (Bermuda) | 49,331 | ||||||
3,708 | Blue Hills Bancorp, Inc. | 54,063 | ||||||
4,656 | Bluerock Residential Growth REIT, Inc., Class A REIT | 50,937 | ||||||
2,399 | BNC Bancorp | 53,642 | ||||||
1,662 | Bridge Bancorp, Inc. | 50,591 | ||||||
4,604 | Brookline Bancorp, Inc. | 52,393 | ||||||
7,063 | BRT Realty Trust REIT(b) | 50,147 | ||||||
1,969 | Bryn Mawr Bank Corp. | 55,959 | ||||||
1,283 | C&F Financial Corp. | 50,024 | ||||||
3,738 | California First National Bancorp | 55,210 | ||||||
1,169 | Camden National Corp. | 50,863 | ||||||
3,769 | Cape Bancorp, Inc. | 54,990 | ||||||
1,642 | Capital Bank Financial Corp., Class A | 49,638 | ||||||
5,123 | Capstead Mortgage Corp. REIT | 49,796 | ||||||
2,491 | Cardinal Financial Corp. | 55,126 | ||||||
2,731 | Carolina Financial Corp. | 51,343 | ||||||
8,874 | Cascade Bancorp(b) | 53,688 | ||||||
1,310 | Cash America International, Inc. | 48,418 | ||||||
4,680 | CatchMark Timber Trust, Inc., Class A REIT | 49,655 | ||||||
7,008 | Cedar Realty Trust, Inc. REIT | 48,495 | ||||||
3,403 | Centerstate Banks, Inc. | 55,435 | ||||||
2,328 | Central Pacific Financial Corp. | 54,336 | ||||||
4,552 | Central Valley Community Bancorp | 55,443 | ||||||
2,859 | Centrue Financial Corp.(b) | 47,660 | ||||||
3,754 | Charter Financial Corp. | 47,038 | ||||||
2,784 | Chicopee Bancorp, Inc. | 50,613 | ||||||
1,061 | City Holding Co. | 52,116 | ||||||
2,320 | Community Financial Corp. (The) | 51,040 | ||||||
1,435 | Community Trust Bancorp, Inc. | 51,473 | ||||||
3,099 | ConnectOne Bancorp, Inc. | 53,334 | ||||||
13,300 | Cowen Group, Inc., Class A(b) | 46,350 | ||||||
2,146 | Customers Bancorp, Inc.(b) | 55,753 | ||||||
2,875 | Dime Community Bancshares, Inc. | 52,066 | ||||||
7,621 | Dynex Capital, Inc. REIT | 49,536 | ||||||
2,737 | Easterly Government Properties, Inc. REIT | 50,498 | ||||||
7,336 | Eastern Virginia Bankshares, Inc. | 51,499 | ||||||
2,908 | Ellington Financial LLC | 49,465 | ||||||
1,976 | EMC Insurance Group, Inc. | 52,285 | ||||||
1,800 | Employers Holdings, Inc. | 53,460 | ||||||
2,825 | Entegra Financial Corp.(b) | 50,426 | ||||||
1,875 | Enterprise Financial Services Corp. | 51,319 | ||||||
3,757 | ESSA Bancorp, Inc. | 50,907 | ||||||
1,918 | Farmers Capital Bank Corp.(b) | 53,915 | ||||||
1,342 | Federal Agricultural Mortgage Corp., Class C | 54,593 | ||||||
3,159 | Fidelity Southern Corp. | 51,049 | ||||||
9,778 | Fifth Street Finance Corp. | 52,997 | ||||||
6,389 | Fifth Street Senior Floating Rate Corp. | 50,409 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
1,742 | Financial Institutions, Inc. | $ | 48,776 | |||||
17,354 | First BanCorp(b) | 67,681 | ||||||
2,473 | First Busey Corp. | 50,548 | ||||||
5,719 | First Commonwealth Financial Corp. | 52,500 | ||||||
2,553 | First Community Bancshares, Inc. | 53,128 | ||||||
3,402 | First Community Corp./SC | 49,431 | ||||||
1,319 | First Defiance Financial Corp. | 52,206 | ||||||
1,481 | First Financial Corp. | 52,472 | ||||||
3,846 | First Financial Northwest, Inc. | 52,459 | ||||||
2,169 | First Internet Bancorp | 53,791 | ||||||
2,149 | First Merchants Corp. | 55,122 | ||||||
2,038 | First MID-Illinois Bancshares, Inc. | 50,726 | ||||||
5,594 | First Potomac Realty Trust REIT | 47,046 | ||||||
2,343 | Flushing Financial Corp. | 46,743 | ||||||
4,671 | FNFV Group(b) | 50,307 | ||||||
3,886 | Forestar Group, Inc.(b) | 52,461 | ||||||
1,875 | Franklin Financial Network, Inc.(b) | 56,887 | ||||||
7,725 | Gain Capital Holdings, Inc. | 52,916 | ||||||
1,524 | German American Bancorp, Inc. | 49,119 | ||||||
2,554 | Getty Realty Corp. REIT | 50,263 | ||||||
6,802 | Gladstone Capital Corp. | 51,967 | ||||||
7,220 | Gladstone Investment Corp. | 50,179 | ||||||
1,629 | Global Indemnity PLC, Class A(b) | 51,232 | ||||||
2,585 | Goldman Sachs BDC, Inc. | 50,795 | ||||||
2,929 | Golub Capital BDC, Inc. | 51,404 | ||||||
1,363 | Great Southern Bancorp, Inc. | 51,603 | ||||||
4,407 | Hallmark Financial Services, Inc.(b) | 49,755 | ||||||
2,302 | Hanmi Financial Corp. | 53,222 | ||||||
2,636 | Hannon Armstrong Sustainable Infrastructure Capital, Inc. REIT | 51,138 | ||||||
1,593 | Heartland Financial USA, Inc. | 53,381 | ||||||
4,220 | Hercules Capital, Inc. | 51,779 | ||||||
2,884 | Heritage Financial Corp. | 53,210 | ||||||
1,890 | Home Bancorp, Inc. | 52,769 | ||||||
2,358 | HomeStreet, Inc.(b) | 50,815 | ||||||
2,766 | HomeTrust Bancshares, Inc.(b) | 51,309 | ||||||
3,085 | Independence Holding Co. | 47,416 | ||||||
7,116 | Independence Realty Trust, Inc. REIT | 51,022 | ||||||
3,483 | Independent Bank Corp./MI | 52,767 | ||||||
1,848 | Independent Bank Group, Inc. | 67,637 | ||||||
630 | Infinity Property & Casualty Corp. | 50,501 | ||||||
1,896 | INTL FCStone, Inc.(b) | 51,761 | ||||||
555 | Investors Title Co. | 52,853 | ||||||
5,247 | iStar, Inc. REIT(b) | 51,421 | ||||||
3,511 | Lake Sunapee Bank Group | 49,997 | ||||||
1,107 | Lakeland Financial Corp. | 52,350 | ||||||
3,064 | Malvern Bancorp, Inc.(b) | 48,289 | ||||||
6,296 | MBT Financial Corp. | 55,405 | ||||||
5,491 | Medallion Financial Corp. | 42,281 | ||||||
7,679 | Medley Capital Corp. | 52,217 | ||||||
2,259 | Mercantile Bank Corp. | 54,487 | ||||||
3,640 | Meridian Bancorp, Inc. | 53,217 | ||||||
1,112 | Meta Financial Group, Inc. | 55,177 | ||||||
2,281 | Middleburg Financial Corp. | 61,587 | ||||||
3,116 | MMA Capital Management LLC(b) | 50,012 | ||||||
8,252 | Nam Tai Property, Inc. (China) | 50,337 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 86 |
|
PowerShares Zacks Micro Cap Portfolio (PZI) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
2,485 | National Bank Holdings Corp., Class A | $ | 49,675 | |||||
220 | National Western Life Group, Inc., Class A | 47,674 | ||||||
4,008 | New Mountain Finance Corp. | 50,180 | ||||||
10,691 | New York Mortgage Trust, Inc. REIT | 55,593 | ||||||
10,034 | NMI Holdings, Inc., Class A(b) | 63,114 | ||||||
4,627 | Northeast Bancorp | 52,054 | ||||||
3,083 | Northfield Bancorp, Inc. | 48,896 | ||||||
2,893 | Ocean Shore Holding Co. | 51,669 | ||||||
2,774 | OceanFirst Financial Corp. | 54,038 | ||||||
3,791 | OFS Capital Corp. | 50,041 | ||||||
2,639 | Old Point Financial Corp. | 50,933 | ||||||
4,887 | Orchid Island Capital, Inc. REIT | 47,306 | ||||||
2,985 | Oritani Financial Corp. | 51,730 | ||||||
3,072 | Owens Realty Mortgage, Inc. REIT | 50,504 | ||||||
2,371 | Pacific Premier Bancorp, Inc.(b) | 55,149 | ||||||
2,999 | Peapack-Gladstone Financial Corp. | 57,401 | ||||||
4,285 | Pennantpark Floating Rate Capital Ltd. | 50,820 | ||||||
8,361 | PennantPark Investment Corp. | 55,099 | ||||||
2,640 | Peoples Bancorp of North Carolina, Inc. | 50,978 | ||||||
2,511 | Peoples Bancorp, Inc. | 53,961 | ||||||
1,022 | Piper Jaffray Cos.(b) | 42,628 | ||||||
3,869 | Preferred Apartment Communities, Inc., Class A REIT | 47,743 | ||||||
1,675 | Preferred Bank | 53,198 | ||||||
3,216 | Premier Financial Bancorp, Inc. | 51,327 | ||||||
2,972 | Provident Financial Holdings, Inc. | 51,416 | ||||||
2,124 | QCR Holdings, Inc. | 54,735 | ||||||
2,961 | Regional Management Corp.(b) | 48,916 | ||||||
1,961 | Republic Bancorp, Inc., Class A | 53,555 | ||||||
4,504 | Resource Capital Corp. REIT(c) | 53,508 | ||||||
2,792 | Rexford Industrial Realty, Inc. REIT | 52,406 | ||||||
859 | Safety Insurance Group, Inc. | 48,628 | ||||||
1,594 | Salisbury Bancorp, Inc. | 51,008 | ||||||
1,822 | Sandy Spring Bancorp, Inc. | 52,091 | ||||||
3,109 | Seacoast Banking Corp. of Florida(b) | 50,428 | ||||||
6,333 | Select Bancorp, Inc.(b) | 51,867 | ||||||
4,098 | Shore Bancshares, Inc. | 48,111 | ||||||
3,414 | Silver Bay Realty Trust Corp. REIT | 49,844 | ||||||
2,652 | Smartfinancial, Inc.(b) | 44,315 | ||||||
2,931 | Solar Capital Ltd. | 51,674 | ||||||
3,366 | Southwest Bancorp, Inc. | 54,024 | ||||||
2,565 | State Bank Financial Corp. | 53,557 | ||||||
4,022 | State National Cos., Inc. | 45,368 | ||||||
1,396 | Stewart Information Services Corp. | 48,609 | ||||||
2,064 | Stratus Properties, Inc.(b) | 49,330 | ||||||
3,171 | Summit Financial Group, Inc. | 59,234 | ||||||
4,233 | Summit Hotel Properties, Inc. REIT | 48,256 | ||||||
3,398 | TCP Capital Corp. | 50,222 | ||||||
2,161 | Terreno Realty Corp. REIT | 49,206 | ||||||
3,885 | Timberland Bancorp, Inc. | 53,691 | ||||||
8,624 | Tiptree Financial, Inc., Class A | 47,691 | ||||||
768 | Tompkins Financial Corp. | 50,181 | ||||||
3,143 | TPG Specialty Lending, Inc. | 51,639 | ||||||
4,980 | Transcontinental Realty Investors, Inc.(b) | 43,675 | ||||||
2,463 | Triangle Capital Corp. | 52,339 | ||||||
2,002 | TriCo Bancshares | 53,894 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
4,022 | TriState Capital Holdings, Inc.(b) | $ | 53,734 | |||||
3,200 | Triumph Bancorp, Inc.(b) | 50,848 | ||||||
8,361 | TrustCo Bank Corp. NY | 53,594 | ||||||
4,025 | United Financial Bancorp, Inc. | 52,244 | ||||||
4,457 | Unity Bancorp, Inc. | 52,414 | ||||||
2,598 | Univest Corp. of Pennsylvania | 51,285 | ||||||
2,089 | Walker & Dunlop, Inc.(b) | 46,062 | ||||||
2,246 | WashingtonFirst Bankshares, Inc. | 49,861 | ||||||
3,705 | Waterstone Financial, Inc. | 51,944 | ||||||
5,042 | Western Asset Mortgage Capital Corp. REIT | 50,269 | ||||||
6,010 | Westfield Financial, Inc. | 46,037 | ||||||
3,859 | Winthrop Realty Trust REIT | 49,086 | ||||||
1,557 | WSFS Financial Corp. | 53,156 | ||||||
6,493 | Xenith Bankshares, Inc.(b) | 50,386 | ||||||
2,142 | Yadkin Financial Corp. | 53,593 | ||||||
3,396 | ZAIS Financial Corp. REIT | 49,412 | ||||||
|
| |||||||
10,256,635 | ||||||||
|
| |||||||
Health Care—3.3% | ||||||||
5,583 | Aquinox Pharmaceuticals, Inc. (Canada)(b) | 45,446 | ||||||
1,147 | Cynosure, Inc., Class A(b) | 56,134 | ||||||
6,638 | Inotek Pharmaceuticals Corp.(b) | 65,052 | ||||||
3,846 | Invacare Corp. | 43,229 | ||||||
3,163 | LeMaitre Vascular, Inc. | 52,442 | ||||||
1,424 | LHC Group, Inc.(b) | 57,444 | ||||||
1,852 | Loxo Oncology, Inc.(b) | 42,689 | ||||||
2,611 | Luminex Corp.(b) | 52,481 | ||||||
15,355 | Ohr Pharmaceutical, Inc.(b) | 50,211 | ||||||
4,986 | Symmetry Surgical, Inc.(b) | 52,104 | ||||||
11,582 | TransEnterix, Inc.(b) | 17,373 | ||||||
1,974 | Triple-S Management Corp., Class B(b) | 51,403 | ||||||
4,580 | USMD Holdings, Inc.(b) | 53,036 | ||||||
5,320 | Zogenix, Inc.(b) | 54,530 | ||||||
|
| |||||||
693,574 | ||||||||
|
| |||||||
Industrials—10.7% | ||||||||
2,177 | AAR Corp. | 52,335 | ||||||
5,643 | ACCO Brands Corp.(b) | 53,834 | ||||||
2,403 | Aegion Corp.(b) | 51,016 | ||||||
1,790 | Aerovironment, Inc.(b) | 51,695 | ||||||
3,295 | Air Transport Services Group, Inc.(b) | 46,427 | ||||||
6,468 | American Superconductor Corp.(b) | 64,421 | ||||||
1,086 | Astec Industries, Inc. | 52,562 | ||||||
5,022 | CBIZ, Inc.(b) | 51,124 | ||||||
2,579 | CRA International, Inc.(b) | 55,964 | ||||||
18,980 | Diana Shipping, Inc. (Greece)(b)(c) | 65,671 | ||||||
1,302 | Encore Wire Corp. | 49,802 | ||||||
6,819 | Energy Focus, Inc.(b)(c) | 53,188 | ||||||
2,592 | Ennis, Inc. | 50,648 | ||||||
1,300 | ESCO Technologies, Inc. | 50,024 | ||||||
3,359 | Gencor Industries, Inc.(b) | 48,470 | ||||||
1,771 | Gibraltar Industries, Inc.(b) | 46,843 | ||||||
2,139 | Heidrick & Struggles International, Inc. | 42,202 | ||||||
1,473 | ICF International, Inc.(b) | 57,992 | ||||||
6,172 | InnerWorkings, Inc.(b) | 50,425 | ||||||
1,659 | Insteel Industries, Inc. | 48,094 | ||||||
3,454 | Integrated Electrical Services, Inc.(b) | 41,690 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 87 |
|
PowerShares Zacks Micro Cap Portfolio (PZI) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Industrials (continued) | ||||||||
2,651 | Kelly Services, Inc., Class A | $ | 49,759 | |||||
2,895 | Kelly Services, Inc., Class B | 53,673 | ||||||
7,631 | KEYW Holding Corp. (The)(b)(c) | 52,578 | ||||||
10,238 | Kratos Defense & Security Solutions, Inc.(b) | 54,364 | ||||||
7,048 | Layne Christensen Co.(b) | 62,657 | ||||||
4,312 | LSI Industries, Inc. | 54,547 | ||||||
2,498 | Mercury Systems, Inc.(b) | 52,508 | ||||||
2,045 | Mistras Group, Inc.(b) | 49,837 | ||||||
606 | National Presto Industries, Inc. | 52,837 | ||||||
3,204 | Navigant Consulting, Inc.(b) | 51,136 | ||||||
1,700 | Powell Industries, Inc. | 52,904 | ||||||
2,919 | Quanex Building Products Corp. | 54,994 | ||||||
4,500 | RPX Corp.(b) | 49,860 | ||||||
2,778 | Rush Enterprises, Inc., Class A(b) | 54,699 | ||||||
2,535 | SkyWest, Inc. | 59,573 | ||||||
2,106 | SP Plus Corp.(b) | 46,922 | ||||||
9,841 | Sterling Construction Co., Inc.(b) | 51,567 | ||||||
4,385 | Titan Machinery, Inc.(b) | 57,005 | ||||||
3,260 | Tutor Perini Corp.(b) | 51,573 | ||||||
1,361 | Veritiv Corp.(b) | 55,828 | ||||||
1,685 | Viad Corp. | 50,129 | ||||||
2,347 | Willis Lease Finance Corp.(b) | 56,750 | ||||||
|
| |||||||
2,260,127 | ||||||||
|
| |||||||
Information Technology—7.1% | ||||||||
4,278 | Alpha & Omega Semiconductor Ltd.(b) | 55,571 | ||||||
3,398 | Applied Optoelectronics, Inc.(b) | 38,058 | ||||||
2,919 | Autobytel, Inc.(b) | 48,455 | ||||||
18,099 | Axcelis Technologies, Inc.(b) | 51,763 | ||||||
4,874 | Brooks Automation, Inc. | 46,108 | ||||||
2,821 | ChipMOS TECHNOLOGIES Bermuda Ltd. (Taiwan) | 47,449 | ||||||
2,169 | Comtech Telecommunications Corp. | 52,490 | ||||||
6,072 | CUI Global, Inc.(b) | 50,701 | ||||||
5,374 | Digi International, Inc.(b) | 56,803 | ||||||
6,864 | Electro Scientific Industries, Inc.(b) | 48,391 | ||||||
9,823 | EMCORE Corp.(b) | 55,991 | ||||||
1,567 | Fabrinet (Thailand)(b) | 50,097 | ||||||
6,971 | FormFactor, Inc.(b) | 53,677 | ||||||
18,769 | Gigpeak, Inc.(b) | 43,169 | ||||||
1,768 | Insight Enterprises, Inc.(b) | 43,687 | ||||||
4,377 | IXYS Corp. | 47,272 | ||||||
11,387 | Marchex, Inc., Class B | 48,395 | ||||||
17,843 | MeetMe, Inc.(b) | 61,023 | ||||||
3,608 | NeoPhotonics Corp.(b) | 43,260 | ||||||
9,383 | Oclaro, Inc.(b)(c) | 47,384 | ||||||
2,131 | Orbotech Ltd. (Israel)(b) | 51,314 | ||||||
7,644 | Par Technology Corp.(b) | 48,845 | ||||||
4,869 | Photronics, Inc.(b) | 51,514 | ||||||
3,711 | Rudolph Technologies, Inc.(b) | 51,472 | ||||||
1,256 | ScanSource, Inc.(b) | 51,094 | ||||||
11,894 | ServiceSource International, Inc.(b) | 47,933 | ||||||
6,731 | Sonus Networks, Inc.(b) | 55,598 | ||||||
7,621 | TTM Technologies, Inc.(b) | 49,689 | ||||||
2,320 | Ultratech, Inc.(b) | 50,321 | ||||||
11,624 | USA Technologies, Inc.(b) | 50,913 | ||||||
|
| |||||||
1,498,437 | ||||||||
|
|
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Materials—6.0% | ||||||||
3,211 | American Vanguard Corp.(b) | $ | 53,142 | |||||
23,069 | Asanko Gold, Inc. (Canada)(b) | 74,974 | ||||||
1,958 | Ciner Resources LP | 57,957 | ||||||
9,017 | Coeur Mining, Inc.(b) | 73,038 | ||||||
7,819 | First Majestic Silver Corp. (Canada)(b) | 83,194 | ||||||
12,995 | Fortuna Silver Mines, Inc. (Canada)(b) | 83,428 | ||||||
4,299 | FutureFuel Corp. | 48,321 | ||||||
1,390 | Haynes International, Inc. | 52,167 | ||||||
22,931 | IAMGOLD Corp. (Canada)(b) | 77,965 | ||||||
2,928 | Kraton Performance Polymers, Inc.(b) | 66,495 | ||||||
15,642 | Nevsun Resources Ltd. (Canada) | 58,501 | ||||||
2,929 | Olympic Steel, Inc. | 66,254 | ||||||
9,171 | Pretium Resources, Inc. (Canada)(b) | 75,477 | ||||||
8,984 | Richmont Mines, Inc. (Canada)(b) | 69,896 | ||||||
15,404 | Sandstorm Gold Ltd. (Canada)(b) | 65,775 | ||||||
2,747 | Schnitzer Steel Industries, Inc., Class A | 56,643 | ||||||
4,485 | Seabridge Gold, Inc. (Canada)(b) | 64,270 | ||||||
9,131 | Silver Standard Resources, Inc. (Canada)(b) | 85,740 | ||||||
2,573 | Westlake Chemical Partners LP | 49,247 | ||||||
|
| |||||||
1,262,484 | ||||||||
|
| |||||||
Pharmaceuticals—0.0% | ||||||||
27,615 | Chelsea Therapeutics International Ltd.(b) | 2,209 | ||||||
|
| |||||||
Telecommunication Services—1.0% | ||||||||
3,720 | Internet Gold-Golden Lines Ltd. (Israel)(b) | 51,224 | ||||||
6,438 | Iridium Communications, Inc.(b) | 51,955 | ||||||
5,003 | ORBCOMM, Inc.(b) | 49,580 | ||||||
2,801 | Spok Holdings, Inc. | 47,589 | ||||||
|
| |||||||
200,348 | ||||||||
|
| |||||||
Utilities—1.7% | ||||||||
804 | Chesapeake Utilities Corp. | 47,854 | ||||||
1,122 | Connecticut Water Service, Inc. | 52,757 | ||||||
4,165 | Consolidated Water Co. Ltd. (Cayman Islands) | 57,852 | ||||||
5,719 | Ellomay Capital Ltd. (Israel) | 44,666 | ||||||
1,642 | Middlesex Water Co. | 60,064 | ||||||
1,393 | SJW Corp. | 47,933 | ||||||
1,193 | Unitil Corp. | 47,147 | ||||||
|
| |||||||
358,273 | ||||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $19,473,906) | 21,014,525 | |||||||
|
| |||||||
Money Market Fund—0.3% | ||||||||
63,831 | Invesco Premier Portfolio—Institutional Class, 0.39% (d) (Cost $63,831) | 63,831 | ||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $19,537,737)—100.3% | 21,078,356 | |||||||
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 88 |
|
PowerShares Zacks Micro Cap Portfolio (PZI) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—1.1% | ||||||||
241,545 | Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(d)(e) (Cost $241,545) | $ | 241,545 | |||||
|
| |||||||
Total Investments (Cost $19,779,282)—101.4% | 21,319,901 | |||||||
Other assets less liabilities—(1.4)% | (295,616 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 21,024,285 | ||||||
|
|
Investment Abbreviations:
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | Non-income producing security. |
(c) | All or a portion of this security was out on loan at April 30, 2016. |
(d) | The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
(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. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 89 |
|
Statements of Assets and Liabilities
April 30, 2016
PowerShares Dynamic Large Cap Growth Portfolio (PWB) | PowerShares Dynamic Large Cap Value Portfolio (PWV) | PowerShares Russell 2000 Equal Weight Portfolio (EQWS) | PowerShares Russell 2000 Pure Growth Portfolio (PXSG) | |||||||||||||
Assets: | ||||||||||||||||
Unaffiliated investments, at value(a) | $ | 443,661,082 | $ | 975,404,672 | $ | 13,071,766 | $ | 26,711,853 | ||||||||
Affiliated investments, at value | 52,887 | — | 22,349 | 2,116,460 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total investments, at value | 443,713,969 | 975,404,672 | 13,094,115 | 28,828,313 | ||||||||||||
Receivables: | ||||||||||||||||
Dividends | 330,032 | 1,383,648 | 5,196 | 1,986 | ||||||||||||
Foreign tax reclaims | 9,459 | — | — | — | ||||||||||||
Investments sold | — | — | 17,124 | 212,543 | ||||||||||||
Expenses absorbed | — | — | 29,455 | 1,867 | ||||||||||||
Securities lending | — | — | — | 8,794 | ||||||||||||
Other assets | 3,103 | 5,847 | 3,797 | 3,334 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Assets | 444,056,563 | 976,794,167 | 13,149,687 | 29,056,837 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Liabilities: | ||||||||||||||||
Due to custodian | 253 | 874,580 | — | — | ||||||||||||
Payables: | ||||||||||||||||
Investments purchased | — | — | 14,602 | 200,439 | ||||||||||||
Expenses recaptured | — | — | — | — | ||||||||||||
Collateral upon return of securities loaned | — | — | — | 2,079,497 | ||||||||||||
Accrued advisory fees | 183,376 | 406,106 | — | — | ||||||||||||
Accrued trustees’ and officer’s fees | 33,229 | 44,684 | 14,915 | 16,284 | ||||||||||||
Accrued expenses | 87,837 | 169,975 | 44,863 | 41,382 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Liabilities | 304,695 | 1,495,345 | 74,380 | 2,337,602 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets | $ | 443,751,868 | $ | 975,298,822 | $ | 13,075,307 | $ | 26,719,235 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets Consist of: | ||||||||||||||||
Shares of beneficial interest | $ | 663,456,072 | $ | 1,163,466,717 | $ | 23,939,483 | $ | 62,629,078 | ||||||||
Undistributed net investment income | 539,344 | 3,485,993 | 14,585 | 14,997 | ||||||||||||
Undistributed net realized gain (loss) | (256,277,108 | ) | (240,085,340 | ) | (10,369,794 | ) | (32,936,969 | ) | ||||||||
Net unrealized appreciation (depreciation) | 36,033,560 | 48,431,452 | (508,967 | ) | (2,987,871 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets | $ | 443,751,868 | $ | 975,298,822 | $ | 13,075,307 | $ | 26,719,235 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shares outstanding (unlimited amount authorized, $0.01 par value) | 14,400,000 | 32,500,000 | 400,000 | 1,150,000 | ||||||||||||
Net asset value | $ | 30.82 | $ | 30.01 | $ | 32.69 | $ | 23.23 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Market price | $ | 30.81 | $ | 30.00 | $ | 32.71 | $ | 23.26 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Unaffiliated investments, at cost | $ | 407,627,522 | $ | 926,973,220 | $ | 13,580,107 | $ | 29,699,724 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Affiliated investments, at cost | $ | 52,887 | $ | — | $ | 22,975 | $ | 2,116,460 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total investments, at cost | $ | 407,680,409 | $ | 926,973,220 | $ | 13,603,082 | $ | 31,816,184 | ||||||||
|
|
|
|
|
|
|
| |||||||||
(a) Includes securities on loan with an aggregate value of | $ | — | $ | — | $ | — | $ | 1,992,242 | ||||||||
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 90 |
|
PowerShares Russell 2000 Pure Value Portfolio (PXSV) | PowerShares Russell Midcap Equal Weight Portfolio (EQWM) | PowerShares Russell Midcap Pure Growth Portfolio (PXMG) | PowerShares Russell Midcap Pure Value Portfolio (PXMV) | PowerShares Russell Top 200 Equal Weight Portfolio (EQWL) | PowerShares Russell Top 200 Pure Growth Portfolio (PXLG) | PowerShares Russell Top 200 Pure Value Portfolio (PXLV) | PowerShares Zacks Micro Cap Portfolio (PZI) | |||||||||||||||||||||||
$ | 59,362,780 | $ | 23,344,725 | $ | 67,082,374 | $ | 50,365,035 | $ | 33,780,975 | $ | 151,361,821 | $ | 68,007,291 | $ | 21,014,525 | |||||||||||||||
3,302,156 | 137,439 | 197,678 | 2,405,652 | 38,817 | 49,276 | 17,752 | 305,376 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
62,664,936 | 23,482,164 | 67,280,052 | 52,770,687 | 33,819,792 | 151,411,097 | 68,025,043 | 21,319,901 | |||||||||||||||||||||||
48,485 | 11,339 | 8,022 | 31,440 | 33,410 | 102,156 | 64,595 | 8,589 | |||||||||||||||||||||||
349 | — | — | — | 477 | — | — | 327 | |||||||||||||||||||||||
4,672 | 39,777 | — | 125,404 | — | — | — | 5,023 | |||||||||||||||||||||||
— | 23,060 | — | — | 3,062 | — | — | — | |||||||||||||||||||||||
8,252 | 2,385 | 2,091 | 3,620 | — | — | — | 1,518 | |||||||||||||||||||||||
3,334 | 2,559 | 3,717 | 3,333 | 3,334 | 3,370 | 3,520 | 3,256 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
62,730,028 | 23,561,284 | 67,293,882 | 52,934,484 | 33,860,075 | 151,516,623 | 68,093,158 | 21,338,614 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
— | — | — | — | — | — | — | — | |||||||||||||||||||||||
— | 46,178 | — | 140,980 | — | — | — | — | |||||||||||||||||||||||
— | — | — | — | — | 284 | — | — | |||||||||||||||||||||||
2,983,531 | 97,802 | 196,587 | 2,364,817 | — | — | — | 241,545 | |||||||||||||||||||||||
9,984 | — | 12,446 | 6,730 | — | 36,995 | 11,325 | 3,344 | |||||||||||||||||||||||
18,190 | 15,412 | 23,268 | 16,923 | 16,020 | 12,419 | 10,554 | 17,637 | |||||||||||||||||||||||
50,708 | 44,558 | 46,587 | 41,438 | 39,368 | 52,163 | 42,750 | 51,803 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
3,062,413 | 203,950 | 278,888 | 2,570,888 | 55,388 | 101,861 | 64,629 | 314,329 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | 59,667,615 | $ | 23,357,334 | $ | 67,014,994 | $ | 50,363,596 | $ | 33,804,687 | $ | 151,414,762 | $ | 68,028,529 | $ | 21,024,285 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | 103,806,511 | $ | 36,353,631 | $ | 236,073,668 | $ | 89,520,185 | $ | 44,895,674 | $ | 154,945,581 | $ | 67,712,364 | $ | 89,873,161 | |||||||||||||||
322,551 | 48,478 | 16,867 | 193,728 | 81,363 | 302,414 | 173,391 | 93,697 | |||||||||||||||||||||||
(39,239,380 | ) | (11,228,582 | ) | (162,099,649 | ) | (37,943,885 | ) | (11,142,776 | ) | (2,542,245 | ) | (1,303,547 | ) | (70,483,192 | ) | |||||||||||||||
(5,222,067 | ) | (1,816,193 | ) | (6,975,892 | ) | (1,406,432 | ) | (29,574 | ) | (1,290,988 | ) | 1,446,321 | 1,540,619 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | 59,667,615 | $ | 23,357,334 | $ | 67,014,994 | $ | 50,363,596 | $ | 33,804,687 | $ | 151,414,762 | $ | 68,028,529 | $ | 21,024,285 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
2,500,000 | 600,000 | 2,300,000 | 1,850,000 | 850,000 | 4,600,000 | 2,300,000 | 1,350,000 | |||||||||||||||||||||||
$ | 23.87 | $ | 38.93 | $ | 29.14 | $ | 27.22 | $ | 39.77 | $ | 32.92 | $ | 29.58 | $ | 15.57 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | 23.88 | $ | 38.89 | $ | 29.12 | $ | 27.21 | $ | 39.73 | $ | 32.92 | $ | 29.55 | $ | 15.57 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | 64,526,588 | $ | 25,157,026 | $ | 74,058,266 | $ | 51,771,467 | $ | 33,810,549 | $ | 152,652,809 | $ | 66,560,970 | $ | 19,473,906 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | 3,360,417 | $ | 141,331 | $ | 197,678 | $ | 2,405,652 | $ | 38,817 | $ | 49,276 | $ | 17,752 | $ | 305,376 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | 67,887,005 | $ | 25,298,357 | $ | 74,255,944 | $ | 54,177,119 | $ | 33,849,366 | $ | 152,702,085 | $ | 66,578,722 | $ | 19,779,282 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | 2,728,585 | $ | 98,171 | $ | 190,774 | $ | 2,291,806 | $ | — | $ | — | $ | — | $ | 227,141 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 91 |
|
For the year ended April 30, 2016
PowerShares Dynamic Large Cap Growth Portfolio (PWB) | PowerShares Dynamic Large Cap Value Portfolio (PWV) | PowerShares Russell 2000 Equal Weight Portfolio (EQWS) | PowerShares Russell 2000 Pure Growth Portfolio (PXSG) | |||||||||||||
Investment Income: | ||||||||||||||||
Unaffiliated dividend income | $ | 4,552,495 | $ | 29,873,468 | $ | 162,069 | $ | 138,962 | ||||||||
Affiliated dividend income | 309 | 1,026 | 480 | 112 | ||||||||||||
Securities lending income | — | — | — | 59,242 | ||||||||||||
Foreign withholding tax | — | — | (199 | ) | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Income | 4,552,804 | 29,874,494 | 162,350 | 198,316 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Expenses: | ||||||||||||||||
Advisory fees | 1,883,369 | 4,962,619 | 34,203 | 87,631 | ||||||||||||
Sub-licensing fees | 113,004 | 297,759 | 2,776 | 6,907 | ||||||||||||
Accounting & administration fees | 70,668 | 192,360 | 35,527 | 35,805 | ||||||||||||
Professional fees | 30,068 | 38,768 | 32,381 | 32,329 | ||||||||||||
Trustees’ and officer’s fees | 14,140 | 25,958 | 7,893 | 8,185 | ||||||||||||
Custodian & transfer agent fees | 10,437 | 33,879 | 31,161 | 16,261 | ||||||||||||
Recapture (Note 3) | — | — | — | — | ||||||||||||
Other expenses | 36,483 | 86,205 | 13,728 | 16,424 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Expenses | 2,158,169 | 5,637,548 | 157,669 | 203,542 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Less: Waivers | (298 | ) | (1,030 | ) | (122,434 | ) | (85,794 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net Expenses | 2,157,871 | 5,636,518 | 35,235 | 117,748 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Investment Income | 2,394,933 | 24,237,976 | 127,115 | 80,568 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Realized and Unrealized Gain (Loss): | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investment securities | (16,944,066 | ) | (78,477,797 | ) | (1,630,462 | ) | (2,673,622 | ) | ||||||||
In-kind redemptions | 23,712,886 | 54,956,382 | 3,106,590 | 7,986,718 | ||||||||||||
Foreign currencies | — | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized gain (loss) | 6,768,820 | (23,521,415 | ) | 1,476,128 | 5,313,096 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net unrealized appreciation (depreciation) on: | ||||||||||||||||
Investment securities | 1,296,040 | (24,474,487 | ) | (2,766,711 | ) | (8,134,006 | ) | |||||||||
Foreign currencies | — | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net change in unrealized appreciation (depreciation) | 1,296,040 | (24,474,487 | ) | (2,766,711 | ) | (8,134,006 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized and unrealized gain (loss) | 8,064,860 | (47,995,902 | ) | (1,290,583 | ) | (2,820,910 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | $ | 10,459,793 | $ | (23,757,926 | ) | $ | (1,163,468 | ) | $ | (2,740,342 | ) | |||||
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 92 |
|
PowerShares Russell 2000 Pure Value Portfolio (PXSV) | PowerShares Russell Midcap Equal Weight Portfolio (EQWM) | PowerShares Russell Midcap Pure Growth Portfolio (PXMG) | PowerShares Russell Midcap Pure Value Portfolio (PXMV) | PowerShares Russell Top 200 Equal Weight Portfolio (EQWL) | PowerShares Russell Top 200 Pure Growth Portfolio (PXLG) | PowerShares Russell Top 200 Pure Value Portfolio (PXLV) | PowerShares Zacks Micro Cap Portfolio (PZI) | |||||||||||||||||||||||
$ | 1,751,854 | $ | 487,760 | $ | 481,372 | $ | 1,297,372 | $ | 832,341 | $ | 1,713,277 | $ | 1,363,369 | $ | 493,970 | |||||||||||||||
33,616 | 3,091 | 177 | 107 | 103 | 173 | 86 | 130 | |||||||||||||||||||||||
192,028 | 9,895 | 17,813 | 35,856 | — | — | — | 27,847 | |||||||||||||||||||||||
(1,200 | ) | (685 | ) | (1,533 | ) | (218 | ) | (716 | ) | — | (1,555 | ) | (626 | ) | ||||||||||||||||
|
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|
|
|
|
|
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|
|
|
|
|
|
| |||||||||||||||
1,976,298 | 500,061 | 497,829 | 1,333,117 | 831,728 | 1,713,450 | 1,361,900 | 521,321 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
187,484 | 71,813 | 227,254 | 128,367 | 93,343 | 399,577 | 124,648 | 126,211 | |||||||||||||||||||||||
14,862 | 5,661 | 18,028 | 10,231 | 7,546 | 31,603 | 10,998 | 25,241 | |||||||||||||||||||||||
35,995 | 35,772 | 35,641 | 35,879 | 35,631 | 35,548 | 35,626 | 35,643 | |||||||||||||||||||||||
31,519 | 31,471 | 31,641 | 31,243 | 31,854 | 32,599 | 31,670 | 29,167 | |||||||||||||||||||||||
8,875 | 8,175 | 9,152 | 8,478 | 8,326 | 10,116 | 8,330 | 8,121 | |||||||||||||||||||||||
20,015 | 26,491 | 6,270 | 6,866 | 7,920 | 7,342 | 8,941 | 13,098 | |||||||||||||||||||||||
— | — | — | — | — | 284 | — | — | |||||||||||||||||||||||
22,349 | 15,869 | 20,615 | 18,897 | 15,657 | 20,293 | 15,086 | 15,317 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
321,099 | 195,252 | 348,601 | 239,961 | 200,277 | 537,362 | 235,299 | 252,798 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
(69,112 | ) | (121,212 | ) | (43,170 | ) | (67,442 | ) | (104,177 | ) | (195 | ) | (67,750 | ) | (76,233 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
251,987 | 74,040 | 305,431 | 172,519 | 96,100 | 537,167 | 167,549 | 176,565 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
1,724,311 | 426,021 | 192,398 | 1,160,598 | 735,628 | 1,176,283 | 1,194,351 | 344,756 | |||||||||||||||||||||||
|
|
|
|
|
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|
|
|
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|
|
|
|
|
| |||||||||||||||
(7,678,182 | ) | (1,588,367 | ) | (4,135,002 | ) | (1,404,075 | ) | (776,558 | ) | (1,900,232 | ) | (1,425,019 | ) | (1,662,651 | ) | |||||||||||||||
16,076,087 | 6,642,241 | 20,179,561 | 11,496,546 | 7,955,556 | 33,102,954 | 4,116,985 | 634,352 | |||||||||||||||||||||||
3 | — | — | (19 | ) | — | — | — | (5 | ) | |||||||||||||||||||||
|
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| |||||||||||||||
8,397,908 | 5,053,874 | 16,044,559 | 10,092,452 | 7,178,998 | 31,202,722 | 2,691,966 | (1,028,304 | ) | ||||||||||||||||||||||
|
|
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|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
(14,486,086 | ) | (6,753,851 | ) | (24,188,266 | ) | (11,073,703 | ) | (8,004,214 | ) | (32,667,566 | ) | (1,493,930 | ) | 22,641 | ||||||||||||||||
2 | — | — | 14 | — | — | — | — | |||||||||||||||||||||||
|
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|
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|
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| |||||||||||||||
(14,486,084 | ) | (6,753,851 | ) | (24,188,266 | ) | (11,073,689 | ) | (8,004,214 | ) | (32,667,566 | ) | (1,493,930 | ) | 22,641 | ||||||||||||||||
|
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|
|
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|
|
|
|
|
|
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| |||||||||||||||
(6,088,176 | ) | (1,699,977 | ) | (8,143,707 | ) | (981,237 | ) | (825,216 | ) | (1,464,844 | ) | 1,198,036 | (1,005,663 | ) | ||||||||||||||||
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|
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| |||||||||||||||
$ | (4,363,865 | ) | $ | (1,273,956 | ) | $ | (7,951,309 | ) | $ | 179,361 | $ | (89,588 | ) | $ | (288,561 | ) | $ | 2,392,387 | $ | (660,907 | ) | |||||||||
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|
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|
|
|
|
| 93 |
|
Statements of Changes in Net Assets
For the years ended April 30, 2016 and 2015
PowerShares Dynamic Large Cap Growth Portfolio (PWB) | PowerShares Dynamic Large Cap Value Portfolio (PWV) | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 2,394,933 | $ | 1,840,465 | $ | 24,237,976 | $ | 19,697,950 | ||||||||
Net realized gain (loss) | 6,768,820 | 34,168,125 | (23,521,415 | ) | 93,932,303 | |||||||||||
Net change in unrealized appreciation (depreciation) | 1,296,040 | 11,372,465 | (24,474,487 | ) | (38,976,462 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | 10,459,793 | 47,381,055 | (23,757,926 | ) | 74,653,791 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions to Shareholders from: | ||||||||||||||||
Net investment income | (2,182,044 | ) | (1,697,893 | ) | (23,938,985 | ) | (18,202,206 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shareholder Transactions: | ||||||||||||||||
Proceeds from shares sold | 266,442,635 | 346,162,374 | 396,601,556 | 916,059,144 | ||||||||||||
Value of shares repurchased | (158,547,925 | ) | (349,940,685 | ) | (460,948,721 | ) | (686,255,734 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from shares transactions | 107,894,710 | (3,778,311 | ) | (64,347,165 | ) | 229,803,410 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Increase (Decrease) in Net Assets | 116,172,459 | 41,904,851 | (112,044,076 | ) | 286,254,995 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets: | ||||||||||||||||
Beginning of year | 327,579,409 | 285,674,558 | 1,087,342,898 | 801,087,903 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of year | $ | 443,751,868 | $ | 327,579,409 | $ | 975,298,822 | $ | 1,087,342,898 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income at end of year | $ | 539,344 | $ | 432,274 | $ | 3,485,993 | $ | 3,085,315 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Changes in Shares Outstanding: | ||||||||||||||||
Shares sold | 8,650,000 | 12,100,000 | 13,300,000 | 29,550,000 | ||||||||||||
Shares repurchased | (5,100,000 | ) | (12,400,000 | ) | (15,400,000 | ) | (22,100,000 | ) | ||||||||
Shares outstanding, beginning of year | 10,850,000 | 11,150,000 | 34,600,000 | 27,150,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Shares outstanding, end of year | 14,400,000 | 10,850,000 | 32,500,000 | 34,600,000 | ||||||||||||
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 94 |
|
PowerShares Russell 2000 Equal Weight Portfolio (EQWS) | PowerShares Russell 2000 Pure Growth Portfolio (PXSG) | PowerShares Russell 2000 Pure Value Portfolio (PXSV) | PowerShares Russell Midcap Equal Weight Portfolio (EQWM) | |||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||||
$ | 127,115 | $ | 185,362 | $ | 80,568 | $ | 310,736 | $ | 1,724,311 | $ | 1,129,359 | $ | 426,021 | $ | 394,593 | |||||||||||||||
1,476,128 | 297,102 | 5,313,096 | 291,590 | 8,397,908 | 902,187 | 5,053,874 | 1,616,014 | |||||||||||||||||||||||
(2,766,711 | ) | 1,067,365 | (8,134,006 | ) | 1,431,203 | (14,486,084 | ) | 2,026,494 | (6,753,851 | ) | 1,118,293 | |||||||||||||||||||
|
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|
|
|
|
|
|
|
| |||||||||||||||
(1,163,468 | ) | 1,549,829 | (2,740,342 | ) | 2,033,529 | (4,363,865 | ) | 4,058,040 | (1,273,956 | ) | 3,128,900 | |||||||||||||||||||
|
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|
|
|
|
|
|
| |||||||||||||||
(138,899 | ) | (180,742 | ) | (145,600 | ) | (404,987 | ) | (1,647,876 | ) | (1,010,155 | ) | (425,755 | ) | (386,382 | ) | |||||||||||||||
|
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|
|
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|
| |||||||||||||||
12,873,920 | — | 35,117,426 | 1,289,891 | 68,582,873 | 6,269,836 | 24,737,975 | 8,075,100 | |||||||||||||||||||||||
(14,648,979 | ) | — | (38,302,893 | ) | — | (74,996,370 | ) | (2,600,649 | ) | (33,973,183 | ) | (7,392,512 | ) | |||||||||||||||||
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|
|
| |||||||||||||||
(1,775,059 | ) | — | (3,185,467 | ) | 1,289,891 | (6,413,497 | ) | 3,669,187 | (9,235,208 | ) | 682,588 | |||||||||||||||||||
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|
|
|
|
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| |||||||||||||||
(3,077,426 | ) | 1,369,087 | (6,071,409 | ) | 2,918,433 | (12,425,238 | ) | 6,717,072 | (10,934,919 | ) | 3,425,106 | |||||||||||||||||||
|
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|
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|
|
|
|
| |||||||||||||||
16,152,733 | 14,783,646 | 32,790,644 | 29,872,211 | 72,092,853 | 65,375,781 | 34,292,253 | 30,867,147 | |||||||||||||||||||||||
|
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|
|
|
|
|
|
| |||||||||||||||
$ | 13,075,307 | $ | 16,152,733 | $ | 26,719,235 | $ | 32,790,644 | $ | 59,667,615 | $ | 72,092,853 | $ | 23,357,334 | $ | 34,292,253 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | 14,585 | $ | 27,273 | $ | 14,997 | $ | 80,029 | $ | 322,551 | $ | 178,519 | $ | 48,478 | $ | 48,100 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
350,000 | — | 1,350,000 | 50,000 | 2,600,000 | 250,000 | 600,000 | 200,000 | |||||||||||||||||||||||
(400,000 | ) | — | (1,500,000 | ) | — | (2,900,000 | ) | (100,000 | ) | (850,000 | ) | (200,000 | ) | |||||||||||||||||
450,000 | 450,000 | 1,300,000 | 1,250,000 | 2,800,000 | 2,650,000 | 850,000 | 850,000 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
400,000 | 450,000 | 1,150,000 | 1,300,000 | 2,500,000 | 2,800,000 | 600,000 | 850,000 | |||||||||||||||||||||||
|
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|
|
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|
|
|
|
| 95 |
|
Statements of Changes in Net Assets (continued)
For the years ended April 30, 2016 and 2015
PowerShares Russell Midcap Pure Growth Portfolio (PXMG) | PowerShares Russell Midcap Pure Value Portfolio (PXMV) | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 192,398 | $ | 1,361,832 | $ | 1,160,598 | $ | 783,939 | ||||||||
Net realized gain (loss) | 16,044,559 | 2,858,563 | 10,092,452 | 506,863 | ||||||||||||
Net change in unrealized appreciation (depreciation) | (24,188,266 | ) | 2,664,286 | (11,073,689 | ) | 2,388,681 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | (7,951,309 | ) | 6,884,681 | 179,361 | 3,679,483 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions to Shareholders from: | ||||||||||||||||
Net investment income | (409,368 | ) | (1,325,669 | ) | (1,090,750 | ) | (710,318 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shareholder Transactions: | ||||||||||||||||
Proceeds from shares sold | 91,126,421 | 1,625,910 | 43,244,079 | 6,659,516 | ||||||||||||
Value of shares repurchased | (103,621,188 | ) | (10,869,623 | ) | (44,306,740 | ) | — | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from shares transactions | (12,494,767 | ) | (9,243,713 | ) | (1,062,661 | ) | 6,659,516 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Increase (Decrease) in Net Assets | (20,855,444 | ) | (3,684,701 | ) | (1,974,050 | ) | 9,628,681 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets: | ||||||||||||||||
Beginning of year | 87,870,438 | 91,555,139 | 52,337,646 | 42,708,965 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of year | $ | 67,014,994 | $ | 87,870,438 | $ | 50,363,596 | $ | 52,337,646 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income at end of year | $ | 16,867 | $ | 233,837 | $ | 193,728 | $ | 123,899 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Changes in Shares Outstanding: | ||||||||||||||||
Shares sold | 2,800,000 | 50,000 | 1,550,000 | 250,000 | ||||||||||||
Shares repurchased | (3,250,000 | ) | (350,000 | ) | (1,600,000 | ) | — | |||||||||
Shares outstanding, beginning of year | 2,750,000 | 3,050,000 | 1,900,000 | 1,650,000 | ||||||||||||
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| |||||||||
Shares outstanding, end of year | 2,300,000 | 2,750,000 | 1,850,000 | 1,900,000 | ||||||||||||
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See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 96 |
|
PowerShares Russell Top 200 Equal Weight Portfolio (EQWL) | PowerShares Russell Top 200 Pure Growth Portfolio (PXLG) | PowerShares Russell Top 200 Pure Value Portfolio (PXLV) | PowerShares Zacks Micro Cap Portfolio (PZI) | |||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||||
$ | 735,628 | $ | 810,425 | $ | 1,176,283 | $ | 2,176,714 | $ | 1,194,351 | $ | 818,075 | $ | 344,756 | $ | 496,512 | |||||||||||||||
7,178,998 | 1,042,260 | 31,202,722 | 1,975,121 | 2,691,966 | (34,420 | ) | (1,028,304 | ) | (510,688 | ) | ||||||||||||||||||||
(8,004,214 | ) | 2,215,368 | (32,667,566 | ) | 14,906,809 | (1,493,930 | ) | 1,162,749 | 22,641 | (58,247 | ) | |||||||||||||||||||
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(89,588 | ) | 4,068,053 | (288,561 | ) | 19,058,644 | 2,392,387 | 1,946,404 | (660,907 | ) | (72,423 | ) | |||||||||||||||||||
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(736,635 | ) | (759,003 | ) | (1,168,868 | ) | (2,084,013 | ) | (1,133,932 | ) | (752,115 | ) | (314,529 | ) | (822,121 | ) | |||||||||||||||
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30,707,855 | 1,927,148 | 179,576,353 | 28,739,952 | 57,153,056 | 25,452,499 | — | 22,481,177 | |||||||||||||||||||||||
(38,325,557 | ) | (3,757,982 | ) | (172,206,268 | ) | (6,534,201 | ) | (31,730,490 | ) | — | (6,919,902 | ) | (54,448,541 | ) | ||||||||||||||||
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(7,617,702 | ) | (1,830,834 | ) | 7,370,085 | 22,205,751 | 25,422,566 | 25,452,499 | (6,919,902 | ) | (31,967,364 | ) | |||||||||||||||||||
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(8,443,925 | ) | 1,478,216 | 5,912,656 | 39,180,382 | 26,681,021 | 26,646,788 | (7,895,338 | ) | (32,861,908 | ) | ||||||||||||||||||||
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42,248,612 | 40,770,396 | 145,502,106 | 106,321,724 | 41,347,508 | 14,700,720 | 28,919,623 | 61,781,531 | |||||||||||||||||||||||
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$ | 33,804,687 | $ | 42,248,612 | $ | 151,414,762 | $ | 145,502,106 | $ | 68,028,529 | $ | 41,347,508 | $ | 21,024,285 | $ | 28,919,623 | |||||||||||||||
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$ | 81,363 | $ | 82,370 | $ | 302,414 | $ | 294,999 | $ | 173,391 | $ | 112,972 | $ | 93,697 | $ | 50,995 | |||||||||||||||
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750,000 | 50,000 | 5,350,000 | 900,000 | 2,000,000 | 849,999 | — | 1,350,000 | |||||||||||||||||||||||
(950,000 | ) | (100,000 | ) | (5,050,000 | ) | (200,001 | ) | (1,050,000 | ) | — | (450,000 | ) | (3,350,000 | ) | ||||||||||||||||
1,050,000 | 1,100,000 | 4,300,000 | 3,600,001 | 1,350,000 | 500,001 | 1,800,000 | 3,800,000 | |||||||||||||||||||||||
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850,000 | 1,050,000 | 4,600,000 | 4,300,000 | 2,300,000 | 1,350,000 | 1,350,000 | 1,800,000 | |||||||||||||||||||||||
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| 97 |
|
PowerShares Dynamic Large Cap Growth Portfolio (PWB)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 30.19 | $ | 25.62 | $ | 21.29 | $ | 18.73 | $ | 17.63 | ||||||||||
Net investment income(a) | 0.19 | 0.18 | 0.10 | 0.21 | 0.15 | |||||||||||||||
Net realized and unrealized gain on investments | 0.62 | 4.56 | 4.34 | 2.55 | 1.09 | |||||||||||||||
Total from investment operations | 0.81 | 4.74 | 4.44 | 2.76 | 1.24 | |||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.18 | ) | (0.17 | ) | (0.11 | ) | (0.20 | ) | (0.14 | ) | ||||||||||
Net asset value at end of year | $ | 30.82 | $ | 30.19 | $ | 25.62 | $ | 21.29 | $ | 18.73 | ||||||||||
Market price at end of year(b) | $ | 30.81 | $ | 30.17 | $ | 25.62 | $ | 21.28 | $ | 18.72 | ||||||||||
Net Asset Value Total Return(c) | 2.70 | % | 18.52 | % | 20.91 | % | 14.91 | % | 7.18 | % | ||||||||||
Market Price Total Return(c) | 2.73 | % | 18.44 | % | 20.96 | % | 14.92 | % | 7.12 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 443,752 | $ | 327,579 | $ | 285,675 | $ | 212,897 | $ | 191,013 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.57 | % | 0.58 | % | 0.58 | % | 0.59 | % | 0.61 | % | ||||||||||
Expenses, prior to Waivers | 0.57 | % | 0.58 | % | 0.58 | % | 0.59 | % | 0.62 | % | ||||||||||
Net investment income, after Waivers | 0.64 | % | 0.63 | % | 0.43 | % | 1.08 | % | 0.89 | % | ||||||||||
Portfolio turnover rate(d) | 97 | % | 143 | % | 123 | % | 47 | % | 64 | % |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
PowerShares Dynamic Large Cap Value Portfolio (PWV)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 31.43 | $ | 29.51 | $ | 25.21 | $ | 20.73 | $ | 20.35 | ||||||||||
Net investment income(a) | 0.73 | 0.64 | 0.55 | 0.52 | 0.46 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (1.43 | ) | 1.88 | 4.30 | 4.48 | 0.38 | ||||||||||||||
Total from investment operations | (0.70 | ) | 2.52 | 4.85 | 5.00 | 0.84 | ||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.72 | ) | (0.60 | ) | (0.55 | ) | (0.52 | ) | (0.46 | ) | ||||||||||
Net asset value at end of year | $ | 30.01 | $ | 31.43 | $ | 29.51 | $ | 25.21 | $ | 20.73 | ||||||||||
Market price at end of year(b) | $ | 30.00 | $ | 31.42 | $ | 29.49 | $ | 25.22 | $ | 20.71 | ||||||||||
Net Asset Value Total Return(c) | (2.17 | )% | 8.56 | % | 19.48 | % | 24.55 | % | 4.34 | % | ||||||||||
Market Price Total Return(c) | (2.18 | )% | 8.60 | % | 19.35 | % | 24.72 | % | 4.20 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 975,299 | $ | 1,087,343 | $ | 801,088 | $ | 574,825 | $ | 419,740 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.57 | % | 0.57 | % | 0.57 | % | 0.59 | % | 0.59 | % | ||||||||||
Expenses, prior to Waivers | 0.57 | % | 0.57 | % | 0.57 | % | 0.59 | % | 0.59 | % | ||||||||||
Net investment income, after Waivers | 2.44 | % | 2.10 | % | 2.04 | % | 2.36 | % | 2.39 | % | ||||||||||
Portfolio turnover rate(d) | 98 | % | 82 | % | 103 | % | 58 | % | 41 | % |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 98 |
|
Financial Highlights (continued)
PowerShares Russell 2000 Equal Weight Portfolio (EQWS)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 35.89 | $ | 32.85 | $ | 27.80 | $ | 24.21 | $ | 25.32 | ||||||||||
Net investment income(a) | 0.31 | 0.41 | 0.33 | 0.46 | 0.22 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (3.17 | ) | 3.03 | 5.12 | 3.60 | (1.18 | ) | |||||||||||||
Total from investment operations | (2.86 | ) | 3.44 | 5.45 | 4.06 | (0.96 | ) | |||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.34 | ) | (0.40 | ) | (0.40 | ) | (0.47 | ) | (0.15 | ) | ||||||||||
Net asset value at end of year | $ | 32.69 | $ | 35.89 | $ | 32.85 | $ | 27.80 | $ | 24.21 | ||||||||||
Market price at end of year(b) | $ | 32.71 | $ | 35.90 | $ | 32.84 | $ | 27.76 | $ | 24.18 | ||||||||||
Net Asset Value Total Return(c) | (8.00 | )% | 10.53 | % | 19.76 | % | 17.05 | % | (3.70 | )% | ||||||||||
Market Price Total Return(c) | (7.97 | )% | 10.59 | % | 19.90 | % | 17.03 | % | (3.85 | )% | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 13,075 | $ | 16,153 | $ | 14,784 | $ | 15,290 | $ | 15,735 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.26 | %(d) | 0.39 | %(d) | 0.39 | % | 0.39 | % | 0.43 | % | ||||||||||
Expenses, prior to Waivers | 1.17 | %(d) | 0.98 | %(d) | 0.94 | % | 1.22 | % | 1.25 | % | ||||||||||
Net investment income, after Waivers | 0.94 | % | 1.20 | % | 1.06 | % | 1.88 | % | 0.97 | % | ||||||||||
Portfolio turnover rate(e) | 143 | % | 7 | % | 50 | % | 45 | % | 97 | % |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 companies’ 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 investment companies the Fund invests in. The effect of the estimated investment companies’ expenses that the Fund bears indirectly is included in the Fund’s total return. |
(e) | Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the year ended April 30, 2016, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 99 |
|
Financial Highlights (continued)
PowerShares Russell 2000 Pure Growth Portfolio (PXSG)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 25.22 | $ | 23.90 | $ | 19.74 | $ | 17.66 | $ | 19.03 | ||||||||||
Net investment income(a) | 0.06 | 0.25 | 0.20 | 0.13 | 0.07 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (1.93 | ) | 1.39 | 4.17 | 2.08 | (1.44 | ) | |||||||||||||
Total from investment operations | (1.87 | ) | 1.64 | 4.37 | 2.21 | (1.37 | ) | |||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.12 | ) | (0.32 | ) | (0.21 | ) | (0.13 | ) | — | |||||||||||
Net asset value at end of year | $ | 23.23 | $ | 25.22 | $ | 23.90 | $ | 19.74 | $ | 17.66 | ||||||||||
Market price at end of year(b) | $ | 23.26 | $ | 25.21 | $ | 23.89 | $ | 19.72 | $ | 17.64 | ||||||||||
Net Asset Value Total Return(c) | (7.47 | )% | 6.92 | % | 22.31 | % | 12.63 | % | (7.20 | )% | ||||||||||
Market Price Total Return(c) | (7.31 | )% | 6.92 | % | 22.38 | % | 12.65 | % | (7.40 | )% | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 26,719 | $ | 32,791 | $ | 29,872 | $ | 26,646 | $ | 30,913 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.39 | %(d) | 0.39 | %(d) | 0.39 | %(d) | 0.39 | %(d) | 0.48 | % | ||||||||||
Expenses, prior to Waivers | 0.67 | %(d) | 0.69 | %(d) | 0.70 | %(d) | 0.92 | %(d) | 0.69 | % | ||||||||||
Net investment income, after Waivers | 0.27 | % | 1.02 | % | 0.90 | % | 0.72 | % | 0.41 | % | ||||||||||
Portfolio turnover rate(e) | 144 | % | 6 | % | 39 | % | 39 | % | 189 | % |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning at the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 companies’ 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 investment companies the Fund invests in. The effect of the estimated investment companies’ expenses that the Fund bears indirectly is included in the Fund’s total return. |
(e) | Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the year ended April 30, 2016, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 100 |
|
Financial Highlights (continued)
PowerShares Russell 2000 Pure Value Portfolio (PXSV)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 25.75 | $ | 24.67 | $ | 19.63 | $ | 16.35 | $ | 17.07 | ||||||||||
Net investment income(a) | 0.63 | 0.42 | 0.30 | 0.32 | 0.19 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (1.91 | ) | 1.03 | 5.03 | 3.31 | (0.72 | ) | |||||||||||||
Total from investment operations | (1.28 | ) | 1.45 | 5.33 | 3.63 | (0.53 | ) | |||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.60 | ) | (0.37 | ) | (0.29 | ) | (0.35 | ) | (0.19 | ) | ||||||||||
Net asset value at end of year | $ | 23.87 | $ | 25.75 | $ | 24.67 | $ | 19.63 | $ | 16.35 | ||||||||||
Market price at end of year(b) | $ | 23.88 | $ | 25.75 | $ | 24.68 | $ | 19.61 | $ | 16.33 | ||||||||||
Net Asset Value Total Return(c) | (4.93 | )% | 5.91 | % | 27.29 | % | 22.56 | % | (3.01 | )% | ||||||||||
Market Price Total Return(c) | (4.90 | )% | 5.87 | % | 27.47 | % | 22.58 | % | (3.18 | )% | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 59,668 | $ | 72,093 | $ | 65,376 | $ | 48,084 | $ | 52,312 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.39 | % | 0.39 | % | 0.39 | % | 0.39 | % | 0.43 | % | ||||||||||
Expenses, prior to Waivers | 0.50 | % | 0.55 | % | 0.54 | % | 0.70 | % | 0.64 | % | ||||||||||
Net investment income, after Waivers | 2.67 | % | 1.65 | % | 1.31 | % | 1.87 | % | 1.28 | % | ||||||||||
Portfolio turnover rate(d) | 137 | % | 5 | % | 43 | % | 31 | % | 109 | % |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the year ended April 30, 2016, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change. |
PowerShares Russell Midcap Equal Weight Portfolio (EQWM)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 40.34 | $ | 36.31 | $ | 30.41 | $ | 26.60 | $ | 27.15 | ||||||||||
Net investment income(a) | 0.56 | 0.50 | 0.40 | 0.43 | 0.29 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (1.41 | ) | 4.03 | 5.90 | 3.80 | (0.57 | ) | |||||||||||||
Total from investment operations | (0.85 | ) | 4.53 | 6.30 | 4.23 | (0.28 | ) | |||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.56 | ) | (0.50 | ) | (0.40 | ) | (0.42 | ) | (0.27 | ) | ||||||||||
Net asset value at end of year | $ | 38.93 | $ | 40.34 | $ | 36.31 | $ | 30.41 | $ | 26.60 | ||||||||||
Market price at end of year(b) | $ | 38.89 | $ | 40.35 | $ | 36.25 | $ | 30.39 | $ | 26.62 | ||||||||||
Net Asset Value Total Return(c) | (2.02 | )% | 12.52 | % | 20.85 | % | 16.16 | % | (0.93 | )% | ||||||||||
Market Price Total Return(c) | (2.14 | )% | 12.73 | % | 20.73 | % | 16.00 | % | (0.85 | )% | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 23,357 | $ | 34,292 | $ | 30,867 | $ | 19,768 | $ | 18,623 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.26 | % | 0.39 | % | 0.39 | % | 0.39 | % | 0.43 | % | ||||||||||
Expenses, prior to Waivers | 0.69 | % | 0.66 | % | 0.69 | % | 1.00 | % | 1.01 | % | ||||||||||
Net investment income, after Waivers | 1.50 | % | 1.31 | % | 1.19 | % | 1.58 | % | 1.16 | % | ||||||||||
Portfolio turnover rate(d) | 135 | % | 5 | % | 50 | % | 38 | % | 83 | % |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the year ended April 30, 2016, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
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Financial Highlights (continued)
PowerShares Russell Midcap Pure Growth Portfolio (PXMG)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 31.95 | $ | 30.02 | $ | 26.06 | $ | 22.65 | $ | 24.13 | ||||||||||
Net investment income(a) | 0.07 | 0.47 | 0.33 | 0.26 | 0.13 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (2.72 | ) | 1.92 | 4.01 | 3.38 | (1.53 | ) | |||||||||||||
Total from investment operations | (2.65 | ) | 2.39 | 4.34 | 3.64 | (1.40 | ) | |||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.16 | ) | (0.46 | ) | (0.38 | ) | (0.23 | ) | (0.08 | ) | ||||||||||
Net asset value at end of year | $ | 29.14 | $ | 31.95 | $ | 30.02 | $ | 26.06 | $ | 22.65 | ||||||||||
Market price at end of year(b) | $ | 29.12 | $ | 31.95 | $ | 29.99 | $ | 26.04 | $ | 22.63 | ||||||||||
Net Asset Value Total Return(c) | (8.34 | )% | 7.98 | % | 16.80 | % | 16.23 | % | (5.74 | )% | ||||||||||
Market Price Total Return(c) | (8.40 | )% | 8.09 | % | 16.77 | % | 16.25 | % | (5.83 | )% | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 67,015 | $ | 87,870 | $ | 91,555 | $ | 82,101 | $ | 87,203 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.39 | % | 0.39 | % | 0.39 | % | 0.39 | % | 0.43 | % | ||||||||||
Expenses, prior to Waivers | 0.44 | % | 0.46 | % | 0.45 | % | 0.54 | % | 0.55 | % | ||||||||||
Net investment income, after Waivers | 0.25 | % | 1.51 | % | 1.19 | % | 1.14 | % | 0.61 | % | ||||||||||
Portfolio turnover rate(d) | 147 | % | 3 | % | 33 | % | 33 | % | 75 | % |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the year ended April 30, 2016, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
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Financial Highlights (continued)
PowerShares Russell Midcap Pure Value Portfolio (PXMV)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 27.55 | $ | 25.88 | $ | 20.98 | $ | 17.06 | $ | 17.07 | ||||||||||
Net investment income(a) | 0.68 | 0.43 | 0.37 | 0.37 | 0.25 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.37 | ) | 1.63 | 4.87 | 3.94 | (0.03 | ) | |||||||||||||
Total from investment operations | 0.31 | 2.06 | 5.24 | 4.31 | 0.22 | |||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.64 | ) | (0.39 | ) | (0.34 | ) | (0.39 | ) | (0.23 | ) | ||||||||||
Net asset value at end of year | $ | 27.22 | $ | 27.55 | $ | 25.88 | $ | 20.98 | $ | 17.06 | ||||||||||
Market price at end of year(b) | $ | 27.21 | $ | 27.53 | $ | 25.87 | $ | 20.98 | $ | 17.04 | ||||||||||
Net Asset Value Total Return(c) | 1.35 | % | 7.98 | % | 25.19 | % | 25.74 | % | 1.42 | % | ||||||||||
Market Price Total Return(c) | 1.39 | % | 7.94 | % | 25.14 | % | 25.89 | % | 1.30 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 50,364 | $ | 52,338 | $ | 42,709 | $ | 28,321 | $ | 32,408 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.39 | %(d) | 0.39 | %(d) | 0.39 | % | 0.39 | % | 0.43 | % | ||||||||||
Expenses, prior to Waivers | 0.54 | %(d) | 0.56 | %(d) | 0.62 | % | 0.82 | % | 0.79 | % | ||||||||||
Net investment income, after Waivers | 2.62 | % | 1.58 | % | 1.56 | % | 2.08 | % | 1.57 | % | ||||||||||
Portfolio turnover rate(e) | 131 | % | 4 | % | 33 | % | 25 | % | 83 | % |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 companies’ 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 investment companies the Fund invests in. The effect of the estimated investment companies’ expenses that the Fund bears indirectly is included in the Fund’s total return. |
(e) | Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the year ended April 30, 2016, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change. |
PowerShares Russell Top 200 Equal Weight Portfolio (EQWL)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 40.24 | $ | 37.06 | $ | 30.97 | $ | 26.66 | $ | 26.42 | ||||||||||
Net investment income(a) | 0.78 | 0.75 | 0.63 | 0.65 | 0.57 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.48 | ) | 3.14 | 6.03 | 4.35 | 0.32 | ||||||||||||||
Total from investment operations | 0.30 | 3.89 | 6.66 | 5.00 | 0.89 | |||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.77 | ) | (0.71 | ) | (0.57 | ) | (0.69 | ) | (0.65 | ) | ||||||||||
Net asset value at end of year | $ | 39.77 | $ | 40.24 | $ | 37.06 | $ | 30.97 | $ | 26.66 | ||||||||||
Market price at end of year(b) | $ | 39.73 | $ | 40.21 | $ | 37.08 | $ | 30.98 | $ | 26.66 | ||||||||||
Net Asset Value Total Return(c) | 0.81 | % | 10.52 | % | 21.69 | % | 19.10 | % | 3.64 | % | ||||||||||
Market Price Total Return(c) | 0.78 | % | 10.38 | % | 21.72 | % | 19.15 | % | 3.64 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 33,805 | $ | 42,249 | $ | 40,770 | $ | 27,874 | $ | 25,326 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.26 | % | 0.39 | % | 0.39 | % | 0.39 | % | 0.43 | % | ||||||||||
Expenses, prior to Waivers | 0.54 | % | 0.57 | % | 0.60 | % | 0.80 | % | 0.90 | % | ||||||||||
Net investment income, after Waivers | 1.99 | % | 1.92 | % | 1.85 | % | 2.38 | % | 2.32 | % | ||||||||||
Portfolio turnover rate(d) | 101 | % | 3 | % | 38 | % | 43 | % | 58 | % |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the year ended April 30, 2016, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
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Financial Highlights (continued)
PowerShares Russell Top 200 Pure Growth Portfolio (PXLG)
Year Ended April 30, | For the Period June 13, 2011(a) Through April 30, 2012 | |||||||||||||||||||
2016 | 2015 | 2014 | 2013 | |||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of period | $ | 33.84 | $ | 29.53 | $ | 25.10 | $ | 22.20 | $ | 20.00 | ||||||||||
Net investment income(b) | 0.28 | 0.55 | 0.50 | 0.39 | 0.28 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.91 | ) | 4.29 | 4.57 | 2.87 | 2.09 | ||||||||||||||
Total from investment operations | (0.63 | ) | 4.84 | 5.07 | 3.26 | 2.37 | ||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.29 | ) | (0.53 | ) | (0.62 | ) | (0.36 | ) | (0.17 | ) | ||||||||||
Net realized gains | — | — | (0.02 | ) | — | — | ||||||||||||||
Total distributions | (0.29 | ) | (0.53 | ) | (0.64 | ) | (0.36 | ) | (0.17 | ) | ||||||||||
Net asset value at end of period | $ | 32.92 | $ | 33.84 | $ | 29.53 | $ | 25.10 | $ | 22.20 | ||||||||||
Market price at end of period(c) | $ | 32.92 | $ | 33.82 | $ | 29.52 | $ | 25.08 | $ | 22.19 | ||||||||||
Net Asset Value Total Return(d) | (1.89 | )% | 16.49 | % | 20.54 | % | 14.87 | % | 11.99 | %(e) | ||||||||||
Market Price Total Return(d) | (1.83 | )% | 16.46 | % | 20.59 | % | 14.83 | % | 11.94 | %(e) | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of period (000’s omitted) | $ | 151,415 | $ | 145,502 | $ | 106,322 | $ | 82,816 | $ | 4,440 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.39 | % | 0.39 | % | 0.39 | % | 0.39 | % | 0.39 | %(f) | ||||||||||
Expenses, prior to Waivers | 0.39 | % | 0.43 | % | 0.45 | % | 0.79 | % | 7.69 | %(f) | ||||||||||
Net investment income, after Waivers | 0.85 | % | 1.73 | % | 1.84 | % | 1.63 | % | 1.54 | %(f) | ||||||||||
Portfolio turnover rate(g) | 105 | % | 2 | % | 22 | % | 90 | % | 3 | % |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 13.81%. The market price total return from Fund Inception to April 30, 2012 was 13.87%. |
(f) | Annualized. |
(g) | Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the year ended April 30, 2016, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
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Financial Highlights (continued)
PowerShares Russell Top 200 Pure Value Portfolio (PXLV)
Year Ended April 30, | For the Period June 13, 2011(a) Through April 30, 2012 | |||||||||||||||||||
2016 | 2015 | 2014 | 2013 | |||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of period | $ | 30.63 | $ | 29.40 | $ | 25.16 | $ | 20.37 | $ | 20.00 | ||||||||||
Net investment income(b) | 0.80 | 0.72 | 0.63 | 0.52 | 0.39 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (1.09 | ) | 1.16 | 4.17 | 4.77 | 0.33 | ||||||||||||||
Total from investment operations | (0.29 | ) | 1.88 | 4.80 | 5.29 | 0.72 | ||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.76 | ) | (0.65 | ) | (0.54 | ) | (0.50 | ) | (0.35 | ) | ||||||||||
Net realized gains | — | — | (0.02 | ) | — | — | ||||||||||||||
Total distributions | (0.76 | ) | (0.65 | ) | (0.56 | ) | (0.50 | ) | (0.35 | ) | ||||||||||
Net asset value at end of period | $ | 29.58 | $ | 30.63 | $ | 29.40 | $ | 25.16 | $ | 20.37 | ||||||||||
Market price at end of period(c) | $ | 29.55 | $ | 30.62 | $ | 29.39 | $ | 25.16 | $ | 20.35 | ||||||||||
Net Asset Value Total Return(d) | (0.84 | )% | 6.41 | % | 19.27 | % | 26.41 | % | 3.80 | %(e) | ||||||||||
Market Price Total Return(d) | (0.92 | )% | 6.41 | % | 19.23 | % | 26.53 | % | 3.70 | %(e) | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of period (000’s omitted) | $ | 68,029 | $ | 41,348 | $ | 14,701 | $ | 7,549 | $ | 8,148 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.39 | % | 0.39 | % | 0.39 | % | 0.39 | % | 0.39 | %(f) | ||||||||||
Expenses, prior to Waivers | 0.55 | % | 0.62 | % | 1.05 | % | 2.10 | % | 2.87 | %(f) | ||||||||||
Net investment income, after Waivers | 2.78 | % | 2.37 | % | 2.32 | % | 2.43 | % | 2.38 | %(f) | ||||||||||
Portfolio turnover rate(g) | 77 | % | 2 | % | 23 | % | 9 | % | 2 | % |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 market price total return from Fund Inception to April 30, 2012 was 5.23%. |
(f) | Annualized. |
(g) | Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the year ended April 30, 2016, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
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Financial Highlights (continued)
PowerShares Zacks Micro Cap Portfolio (PZI)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 16.07 | $ | 16.26 | $ | 13.57 | $ | 11.34 | $ | 12.53 | ||||||||||
Net investment income(a) | 0.21 | 0.21 | 0.20 | 0.20 | 0.10 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.52 | ) | (0.09 | ) | 2.65 | 2.25 | (1.16 | ) | ||||||||||||
Total from investment operations | (0.31 | ) | 0.12 | 2.85 | 2.45 | (1.06 | ) | |||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.19 | ) | (0.31 | ) | (0.16 | ) | (0.22 | ) | (0.13 | ) | ||||||||||
Net asset value at end of year | $ | 15.57 | $ | 16.07 | $ | 16.26 | $ | 13.57 | $ | 11.34 | ||||||||||
Market price at end of year(b) | $ | 15.57 | $ | 16.05 | $ | 16.25 | $ | 13.54 | $ | 11.32 | ||||||||||
Net Asset Value Total Return(c) | (1.94 | )% | 0.71 | % | 21.06 | % | 21.95 | % | (8.34 | )% | ||||||||||
Market Price Total Return(c) | (1.82 | )% | 0.64 | % | 21.25 | % | 21.90 | % | (8.42 | )% | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 21,024 | $ | 28,920 | $ | 61,782 | $ | 42,055 | $ | 34,019 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers(d) | 0.70 | % | 0.70 | % | 0.70 | % | 0.70 | % | 0.70 | % | ||||||||||
Expenses, prior to Waivers(d) | 1.00 | % | 0.90 | % | 0.79 | % | 0.98 | % | 0.92 | % | ||||||||||
Net investment income, after Waivers | 1.37 | % | 1.28 | % | 1.29 | % | 1.72 | % | 0.92 | % | ||||||||||
Portfolio turnover rate(e) | 134 | % | 115 | % | 123 | % | 96 | % | 67 | % |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 companies’ 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 investment companies the Fund invests in. The effect of the estimated investment companies’ expenses that the Fund bears indirectly is included in the Fund’s total return. |
(e) | Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
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PowerShares Exchange-Traded Fund Trust
April 30, 2016
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, 2016, the Trust offered fifty-three 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 Russell 2000 Equal Weight Portfolio (EQWS) | “Russell 2000 Equal Weight Portfolio” | |
PowerShares Russell 2000 Pure Growth Portfolio (PXSG) | “Russell 2000 Pure Growth Portfolio” | |
PowerShares Russell 2000 Pure Value Portfolio (PXSV) | “Russell 2000 Pure Value Portfolio” | |
PowerShares Russell Midcap Equal Weight Portfolio (EQWM) | “Russell Midcap Equal Weight Portfolio” | |
PowerShares Russell Midcap Pure Growth Portfolio (PXMG) | “Russell Midcap Pure Growth Portfolio” | |
PowerShares Russell Midcap Pure Value Portfolio (PXMV) | “Russell Midcap Pure Value Portfolio” | |
PowerShares Russell Top 200 Equal Weight Portfolio (EQWL) | “Russell Top 200 Equal Weight Portfolio” | |
PowerShares Russell Top 200 Pure Growth Portfolio (PXLG) | “Russell Top 200 Pure Growth Portfolio” | |
PowerShares Russell Top 200 Pure Value Portfolio (PXLV) | “Russell Top 200 Pure Value Portfolio” | |
PowerShares Zacks Micro Cap Portfolio (PZI) | “Zacks Micro Cap 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 NYSE Arca, Inc.
The market price of each Share 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 principally in exchange for the deposit or delivery of a basket of securities (“Deposit Securities”). 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 | Underlying Index | |
Dynamic Large Cap Growth Portfolio | Dynamic Large Cap Growth IntellidexSM Index | |
Dynamic Large Cap Value Portfolio | Dynamic Large Cap Value IntellidexSM Index | |
Russell 2000 Equal Weight Portfolio | Russell 2000® Equal Weight Index | |
Russell 2000 Pure Growth Portfolio | Russell 2000® Pure Growth Index | |
Russell 2000 Pure Value Portfolio | Russell 2000® Pure Value Index | |
Russell Midcap Equal Weight Portfolio | Russell Midcap® Equal Weight Index | |
Russell Midcap Pure Growth Portfolio | Russell Midcap® Pure Growth Index | |
Russell Midcap Pure Value Portfolio | Russell Midcap® Pure Value Index | |
Russell Top 200 Equal Weight Portfolio | Russell Top 200® Equal Weight Index | |
Russell Top 200 Pure Growth Portfolio | Russell Top 200® Pure Growth Index | |
Russell Top 200 Pure Value Portfolio | Russell Top 200® Pure 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. The following is a summary of the significant accounting policies followed by the Funds in preparation of their financial statements.
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A. Security Valuation
Securities, including restricted securities, are valued according to the following policies:
A security listed or traded on an exchange (except convertible securities) 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. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked 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 asked prices. For purposes of determining NAV per Share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day NAV per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the 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.
Debt obligations (including convertible securities) 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 (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Securities with a demand feature exercisable within one to seven days are valued at par. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts’) prices 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 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 Invesco PowerShares Capital Management LLC (the “Adviser”) determines 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’ prices 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. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith following procedures approved by the Board of Trustees. Issuer-specific events, market trends, bid/asked 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.
Each Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
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.
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B. Other Risks
Index Risk. Unlike many investment companies, the Funds do not utilize investing strategies that seek returns in excess of their Underlying Indexes. 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.
Equity Risk. Equity risk is the risk that the value of the securities that each Fund holds will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities that a 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 securities a Fund holds; the price of securities 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 securities a Fund holds. In addition, securities 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.
Industry Concentration Risk. In following its methodology, each Fund’s Underlying Index from time to time will be concentrated to a significant degree in securities of issuers located in a single industry or a sector. To the extent that an Underlying Index concentrates in the securities of issuers in a particular industry or sector, each Fund will also concentrate its investments to approximately the same extent. By concentrating its investments in an industry or sector, a Fund may face more risks than if it were diversified broadly over numerous industries or sectors. In addition, at times, an industry or sector may be out of favor and underperform other industries or the market as a whole. Any factors detrimental to the performance of such industry or sector will disproportionately impact a Fund’s NAV.
Non-Diversified Fund Risk. Russell Top 200 Pure Growth Portfolio and Russell Top 200 Pure Value Portfolio are non-diversified and can invest a greater portion of their assets in securities of individual issuers than diversified funds. 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 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.
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. For Russell 2000 Equal Weight Portfolio, Russell 2000 Pure Growth Portfolio, Russell 2000 Pure Value Portfolio, Russell Midcap Equal Weight Portfolio, Russell Midcap Pure Growth Portfolio and Russell Midcap Pure Value Portfolio, 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.
Growth Risk. For Dynamic Large Cap Growth Portfolio, Russell 2000 Pure Growth Portfolio, Russell Midcap Pure Growth Portfolio and Russell Top 200 Pure 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 each Fund’s investments will vary and at times may be lower or higher than that of other types of investments.
Micro Capitalization Company Risk. 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.
Value Risk. For Dynamic Large Cap Value Portfolio, Russell 2000 Pure Value Portfolio, Russell Midcap Pure Value Portfolio and Russell Top 200 Pure 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 each 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.
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Each Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed each Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
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 Transactions and Investment Income
Investment transactions are accounted for on a trade date basis. Realized gains and losses from the sale or disposition of securities are computed on the specific identified cost basis. Interest income is recorded on the accrual basis. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Realized gains, dividends and interest received by a Fund may give rise to withholding and other taxes imposed by foreign countries. Tax conventions between certain countries and the United States may reduce or eliminate such taxes.
The Funds may periodically participate in litigation related to each Fund’s investments. As such, the Funds may receive proceeds from litigation settlements. Any proceeds received are included in the Statements of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Corporate actions (including cash dividends) are recorded net of non-reclaimable foreign tax withholdings on the ex-date.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statements of Operations and the Statements of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of each Fund’s net asset value and, accordingly, they reduce each Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statements of Operations and the Statements of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between each Fund and the Adviser.
E. Country Determination
For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the Adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
F. 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 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 (the “Independent Trustees”) or the Adviser, expenses incurred in connection with the Board members’ services, including travel expenses and legal fees of counsel for the Independent Trustees, acquired fund fees and expenses, if any, 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 such investment companies’ expenses are included in the realized and unrealized gain or loss on the investments in the investment companies.
G. 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. Generally, each Fund distributes net realized taxable capital gains, if any, annually in cash and records them on ex-
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dividend date. Such distributions on a tax basis are determined in conformity with federal 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 year-end.
H. Securities Lending
During the fiscal year ended April 30, 2016, Russell 2000 Pure Growth Portfolio, Russell 2000 Pure Value Portfolio, Russell Midcap Equal Weight Portfolio, Russell Midcap Pure Growth Portfolio, Russell Midcap Pure Value Portfolio and Zacks Micro Cap Portfolio participated in securities lending. Each Fund loaned portfolio securities having a market value up to one-third of each Fund’s total assets. Such loans are secured by cash collateral equal to no less than 102% (105% for international securities) 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 Schedules of Investments. Each Fund bears the risk of loss with respect to the investment of collateral. 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. When loaning securities, each Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to each 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 failed to return the securities. The securities loaned are subject to termination at the option of the borrower or each Fund. Upon termination, the borrower will return to each Fund the securities loaned and each Fund will return the collateral. 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. Each Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to each Fund. Some of these losses may be indemnified by the lending agent. Each 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, are included in Securities lending income on the Statements of Operations. The aggregate value of securities out on loan, if any, is shown on the Statements of Assets and Liabilities.
Note 3. Investment Advisory Agreement and Other Agreements
The Trust has entered into an Investment Advisory Agreement with the Adviser on behalf of each Fund, 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. Pursuant to that Investment Advisory Agreement, each Fund (except for Dynamic Large Cap Growth Portfolio, Dynamic Large Cap Value Portfolio, Russell 2000 Equal Weight Portfolio, Russell Midcap Equal Weight Portfolio, Russell Top 200 Equal Weight 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. Each of Russell 2000 Equal Weight Portfolio, Russell Midcap Equal Weight Portfolio and Russell Top 200 Equal Weight Portfolio has agreed to pay the Adviser an annual fee of 0.25% (0.29% prior to May 22, 2015) of the Fund’s average daily net assets. Each of 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 Trust also has entered into an Amended and Restated Excess Expense Agreement (the “Expense Agreement”) with the Adviser on behalf of each Fund, 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, acquired fund fees and expenses, if any, and extraordinary expenses) of each Fund (except for Dynamic Large Cap Growth Portfolio, Dynamic Large Cap Value Portfolio, Russell 2000 Equal Weight Portfolio, Russell Midcap Equal Weight Portfolio, Russell Top 200 Equal Weight Portfolio and Zacks Micro Cap Portfolio) from exceeding 0.39% of the Fund’s average daily net assets per year (the “Expense Cap”), through at least August 31, 2017. The Expense Cap for each of Russell 2000 Equal Weight Portfolio, Russell Midcap Equal Weight Portfolio and Russell Top 200 Equal Weight Portfolio is 0.25% (0.39% prior to May 22, 2015) of the Fund’s average daily net assets per year, through at least August 31, 2017. 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, through at least August 31, 2017, 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 each Expense Cap for each Fund 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. Unless the Adviser continues the Expense Agreement, it will terminate on August 31, 2017. During its term, the Expense Agreement cannot be terminated or amended to increase the Expense Cap without approval of the Board of Trustees. The Adviser did not waive fees and/or pay Fund expenses during the period under this Expense Cap for Dynamic Large Cap Growth Portfolio, Dynamic Large Cap Value Portfolio and Russell Top 200 Pure Growth Portfolio.
Further, through August 31, 2018, the Adviser has contractually agreed to waive a portion of each Fund’s management fee in an amount equal to 100% of the net advisory fees an affiliate of the Adviser receives that are attributable to certain of the Fund’s investments in money market funds managed by that affiliate (excluding investments of cash collateral from securities lending). The Adviser cannot discontinue this waiver prior to its expiration. This agreement is not subject to recapture by the Adviser.
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For the fiscal year ended April 30, 2016, the Adviser waived fees and/or paid Fund expenses for each Fund in the following amounts:
Dynamic Large Cap Growth Portfolio | $ | 298 | ||
Dynamic Large Cap Value Portfolio | 1,030 | |||
Russell 2000 Equal Weight Portfolio | 122,434 | |||
Russell 2000 Pure Growth Portfolio | 85,794 | |||
Russell 2000 Pure Value Portfolio | 69,112 | |||
Russell Midcap Equal Weight Portfolio | 121,212 | |||
Russell Midcap Pure Growth Portfolio | 43,170 | |||
Russell Midcap Pure Value Portfolio | 67,442 | |||
Russell Top 200 Equal Weight Portfolio | 104,177 | |||
Russell Top 200 Pure Growth Portfolio | 195 | |||
Russell Top 200 Pure Value Portfolio | 67,750 | |||
Zacks Micro Cap Portfolio | 76,233 |
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 following Funds, the amounts available for potential future recapture by the Adviser under the Expense Agreement and the expiration schedule at April 30, 2016 are as follows:
Total Potential Recapture Amounts | Potential Recapture Amounts Expiring | |||||||||||||||
4/30/17 | 4/30/18 | 4/30/19 | ||||||||||||||
Russell 2000 Equal Weight Portfolio | $ | 300,712 | $ | 86,766 | $ | 91,595 | $ | 122,351 | ||||||||
Russell 2000 Pure Growth Portfolio | 266,983 | 88,188 | 93,101 | 85,694 | ||||||||||||
Russell 2000 Pure Value Portfolio | 266,499 | 88,541 | 108,992 | 68,966 | ||||||||||||
Russell Midcap Equal Weight Portfolio | 280,932 | 79,739 | 80,056 | 121,137 | ||||||||||||
Russell Midcap Pure Growth Portfolio | 159,830 | 52,601 | 64,245 | 42,984 | ||||||||||||
Russell Midcap Pure Value Portfolio | 238,884 | 84,721 | 86,833 | 67,330 | ||||||||||||
Russell Top 200 Equal Weight Portfolio | 252,658 | 72,372 | 76,197 | 104,089 | ||||||||||||
Russell Top 200 Pure Growth Portfolio | 101,105 | 55,612 | 45,493 | — | ||||||||||||
Russell Top 200 Pure Value Portfolio | 229,060 | 81,582 | 79,809 | 67,669 | ||||||||||||
Zacks Micro Cap Portfolio | 203,359 | 50,214 | 77,042 | 76,103 |
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 Funds are not charged any fees pursuant to the Distribution Agreement. 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 Large Cap Growth Portfolio | NYSE Group, Inc. | |
Dynamic Large Cap Value Portfolio | NYSE Group, Inc. | |
Russell 2000 Equal Weight Portfolio | Frank Russell Company | |
Russell 2000 Pure Growth Portfolio | Frank Russell Company | |
Russell 2000 Pure Value Portfolio | Frank Russell Company | |
Russell Midcap Equal Weight Portfolio | Frank Russell Company | |
Russell Midcap Pure Growth Portfolio | Frank Russell Company | |
Russell Midcap Pure Value Portfolio | Frank Russell Company | |
Russell Top 200 Equal Weight Portfolio | Frank Russell Company | |
Russell Top 200 Pure Growth Portfolio | Frank Russell Company | |
Russell Top 200 Pure Value Portfolio | Frank Russell Company | |
Zacks Micro Cap Portfolio | Zacks Investment Research |
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Each Underlying Index name trademark is owned by its respective Licensor. These trademarks have been licensed to the Adviser for use by 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 the 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. Investments in Affiliates
The Adviser and Invesco Mortgage Capital, Inc. REIT are wholly-owned subsidiaries of Invesco Ltd. and therefore, Invesco Ltd. and Invesco Mortgage Capital, Inc. REIT are considered to be affiliated with the Funds. The table below shows certain Funds’ transactions in, and earnings from, investments in affiliates for the fiscal year ended April 30, 2016.
Russell 2000 Equal Weight Portfolio
Value April 30, 2015 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain (Loss) | Value April 30, 2016 | Dividend Income | ||||||||||||||||||||||
Invesco Mortgage Capital, Inc. REIT | $ | — | $ | 4,889 | $ | (961 | ) | $ | (626 | ) | $ | (64 | ) | $ | 3,238 | $ | 395 |
Russell 2000 Pure Value Portfolio
Value April 30, 2015 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain (Loss) | Value April 30, 2016 | Dividend Income | ||||||||||||||||||||||
Invesco Mortgage Capital, Inc. REIT | $ | — | $ | 376,137 | $ | (53,287 | ) | $ | (58,261 | ) | $ | (6,625 | ) | $ | 257,964 | $ | 33,490 |
Russell Midcap Equal Weight Portfolio
Value April 30, 2015 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain | Value April 30, 2016 | Dividend Income | ||||||||||||||||||||||
Invesco Ltd. | $ | 423,478 | $ | 302,521 | $ | (699,007 | ) | $ | (90,572 | ) | $ | 76,139 | $ | 12,559 | $ | 3,001 |
Russell Midcap Pure Growth Portfolio
Value April 30, 2015 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation | Realized Gain (Loss) | Value April 30, 2016 | Dividend Income | ||||||||||||||||||||||
Invesco Mortgage Capital, Inc. REIT* | $ | 347,563 | $ | 262,856 | $ | (620,868 | ) | $ | 44,014 | $ | (33,565 | ) | $ | — | $ | — |
* | At April 30, 2016, this security was no longer held. |
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 a 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. |
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Except for the Funds listed below, as of April 30, 2016, all of the securities in each Fund were valued based on Level 1 inputs (see the Schedules 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.
Investments in Securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Russell 2000 Equal Weight Portfolio | ||||||||||||||||
Equity Securities | $ | 13,092,985 | $ | 14 | $ | 1,116 | $ | 13,094,115 | ||||||||
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Russell 2000 Pure Value Portfolio | ||||||||||||||||
Equity Securities | $ | 62,560,048 | $ | — | $ | 104,888 | $ | 62,664,936 | ||||||||
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Zacks Micro Cap Portfolio | ||||||||||||||||
Equity Securities | $ | 21,317,692 | $ | — | $ | 2,209 | $ | 21,319,901 | ||||||||
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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, 2016 and 2015:
2016 | 2015 | |||||||
Ordinary Income | Ordinary Income | |||||||
Dynamic Large Cap Growth Portfolio | $ | 2,182,044 | $ | 1,697,893 | ||||
Dynamic Large Cap Value Portfolio | 23,938,985 | 18,202,206 | ||||||
Russell 2000 Equal Weight Portfolio | 138,899 | 180,742 | ||||||
Russell 2000 Pure Growth Portfolio | 145,600 | 404,987 | ||||||
Russell 2000 Pure Value Portfolio | 1,647,876 | 1,010,155 | ||||||
Russell Midcap Equal Weight Portfolio | 425,755 | 386,382 | ||||||
Russell Midcap Pure Growth Portfolio | 409,368 | 1,325,669 | ||||||
Russell Midcap Pure Value Portfolio | 1,090,750 | 710,318 | ||||||
Russell Top 200 Equal Weight Portfolio | 736,635 | 759,003 | ||||||
Russell Top 200 Pure Growth Portfolio | 1,168,868 | 2,084,013 | ||||||
Russell Top 200 Pure Value Portfolio | 1,133,932 | 752,115 | ||||||
Zacks Micro Cap Portfolio | 314,529 | 822,121 |
Tax Components of Net Assets at Fiscal Year-End:
Undistributed Ordinary Income | Temporary Book/Tax Differences | Net Unrealized Appreciation (Depreciation)— Investment Securities | Net Unrealized Appreciation— Other Investments | Capital Loss Carryforwards | Post-October Capital Losses Deferrals* | Shares of Beneficial Interest | Total Net Assets | |||||||||||||||||||||||||
Dynamic Large Cap Growth Portfolio | $ | 571,159 | $ | (31,815 | ) | $ | 35,147,537 | $ | — | $ | (246,244,318 | ) | $ | (9,146,767 | ) | $ | 663,456,072 | $ | 443,751,868 | |||||||||||||
Dynamic Large Cap Value Portfolio | 3,528,051 | (42,058 | ) | 41,309,363 | — | (199,857,395 | ) | (33,105,856 | ) | 1,163,466,717 | 975,298,822 | |||||||||||||||||||||
Russell 2000 Equal Weight Portfolio | 30,074 | (14,063 | ) | (631,269 | ) | — | (9,593,005 | ) | (655,913 | ) | 23,939,483 | 13,075,307 | ||||||||||||||||||||
Russell 2000 Pure Growth Portfolio | 30,387 | (15,390 | ) | (3,154,296 | ) | — | (32,769,693 | ) | (851 | ) | 62,629,078 | 26,719,235 | ||||||||||||||||||||
Russell 2000 Pure Value Portfolio | 339,783 | (17,232 | ) | (5,633,883 | ) | 2 | (37,378,801 | ) | (1,448,765 | ) | 103,806,511 | 59,667,615 | ||||||||||||||||||||
Russell Midcap Equal Weight Portfolio | 63,001 | (14,523 | ) | (2,039,522 | ) | — | (10,594,563 | ) | (410,690 | ) | 36,353,631 | 23,357,334 | ||||||||||||||||||||
Russell Midcap Pure Growth Portfolio | 39,135 | (22,268 | ) | (7,207,789 | ) | — | (161,867,752 | ) | — | 236,073,668 | 67,014,994 | |||||||||||||||||||||
Russell Midcap Pure Value Portfolio | 209,723 | (15,995 | ) | (1,498,231 | ) | — | (37,852,086 | ) | — | 89,520,185 | 50,363,596 |
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Undistributed Ordinary Income | Temporary Book/Tax Differences | Net Unrealized Appreciation (Depreciation)— Investment Securities | Net Unrealized Appreciation— Other Investments | Capital Loss Carryforwards | Post-October Capital Losses Deferrals* | Shares of Beneficial Interest | Total Net Assets | |||||||||||||||||||||||||
Russell Top 200 Equal Weight Portfolio | $ | 96,456 | $ | (15,093 | ) | $ | (213,778 | ) | $ | — | $ | (10,797,188 | ) | $ | (161,384 | ) | $ | 44,895,674 | $ | 33,804,687 | ||||||||||||
Russell Top 200 Pure Growth Portfolio | 313,790 | (11,376 | ) | (1,486,902 | ) | — | (2,340,839 | ) | (5,492 | ) | 154,945,581 | 151,414,762 | ||||||||||||||||||||
Russell Top 200 Pure Value Portfolio | 183,047 | (9,656 | ) | 1,022,990 | — | (880,216 | ) | — | 67,712,364 | 68,028,529 | ||||||||||||||||||||||
Zacks Micro Cap Portfolio | 139,449 | (17,259 | ) | 1,482,349 | — | (69,673,446 | ) | (779,969 | ) | 89,873,161 | 21,024,285 |
* | The Funds will elect to defer net capital losses incurred after October 31 (“Post-October Capital Losses”) within the taxable year that are deemed to arise on the first business day of each Fund’s next taxable year. |
Capital loss carryforwards are calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforwards actually available for the Funds to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. 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. Capital loss carryforwards with no expiration date 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 carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The following table presents available capital loss carryforwards and expiration dates for each Fund as of April 30, 2016:
Post-effective/no expiration | ||||||||||||||||||||||||||||
2017 | 2018 | 2019 | Short-Term | Long-Term | Total* | Expired | ||||||||||||||||||||||
Dynamic Large Cap Growth Portfolio | $ | 68,715,641 | $ | 131,638,879 | $ | 15,986,258 | $ | 29,903,540 | $ | — | $ | 246,244,318 | $ | 14,024,455 | ||||||||||||||
Dynamic Large Cap Value Portfolio | 22,558,581 | 56,819,182 | 17,964,198 | 89,975,320 | 12,540,114 | 199,857,395 | 2,783,761 | |||||||||||||||||||||
Russell 2000 Equal Weight Portfolio | 2,738,120 | 2,009,294 | 2,491,519 | 1,616,951 | 737,121 | 9,593,005 | 1,028,299 | |||||||||||||||||||||
Russell 2000 Pure Growth Portfolio | 9,888,431 | 10,392,627 | 4,547,805 | 5,052,782 | 2,888,048 | 32,769,693 | 6,666,558 | |||||||||||||||||||||
Russell 2000 Pure Value Portfolio | 16,547,947 | 9,588,502 | 5,376,983 | 1,312,125 | 4,553,244 | 37,378,801 | 8,615,687 | |||||||||||||||||||||
Russell Midcap Equal Weight Portfolio | 3,815,763 | 3,611,366 | 741,893 | 1,442,431 | 983,110 | 10,594,563 | 628,828 | |||||||||||||||||||||
Russell Midcap Pure Growth Portfolio | 54,769,394 | 82,364,246 | 12,021,724 | 7,498,360 | 5,214,028 | 161,867,752 | 5,112,579 | |||||||||||||||||||||
Russell Midcap Pure Value Portfolio | 12,697,113 | 18,996,863 | 2,751,107 | 2,459,036 | 947,967 | 37,852,086 | 5,347,255 | |||||||||||||||||||||
Russell Top 200 Equal Weight Portfolio | 2,328,337 | 5,621,834 | 1,626,267 | 951,778 | 268,972 | 10,797,188 | 87,112 | |||||||||||||||||||||
Russell Top 200 Pure Growth Portfolio | — | — | — | 921,324 | 1,419,515 | 2,340,839 | — | |||||||||||||||||||||
Russell Top 200 Pure Value Portfolio | — | — | — | 377,191 | 503,025 | 880,216 | — | |||||||||||||||||||||
Zacks Micro Cap Portfolio | 28,782,755 | 12,380,833 | 7,234,973 | 19,513,243 | 1,761,642 | 69,673,446 | 14,330,930 |
* | Capital loss carryforwards as of the date listed above is reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
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Note 7. Investment Transactions
For the fiscal year ended April 30, 2016, the cost of securities purchased and proceeds from sales of securities (other than short-term securities, U.S. Treasury obligations, money market funds and in-kind transactions, if any) were as follows:
Purchases | Sales | |||||||
Dynamic Large Cap Growth Portfolio | $ | 364,472,933 | $ | 365,163,753 | ||||
Dynamic Large Cap Value Portfolio | 971,870,026 | 970,618,740 | ||||||
Russell 2000 Equal Weight Portfolio | 19,514,821 | 19,537,154 | ||||||
Russell 2000 Pure Growth Portfolio | 43,472,408 | 43,959,857 | ||||||
Russell 2000 Pure Value Portfolio | 88,643,294 | 88,783,805 | ||||||
Russell Midcap Equal Weight Portfolio | 38,755,897 | 38,451,221 | ||||||
Russell Midcap Pure Growth Portfolio | 114,805,832 | 114,495,355 | ||||||
Russell Midcap Pure Value Portfolio | 59,939,841 | 59,119,489 | ||||||
Russell Top 200 Equal Weight Portfolio | 37,073,231 | 38,831,112 | ||||||
Russell Top 200 Pure Growth Portfolio | 146,143,987 | 146,250,590 | ||||||
Russell Top 200 Pure Value Portfolio | 34,124,852 | 34,556,807 | ||||||
Zacks Micro Cap Portfolio | 33,782,149 | 33,684,831 |
For the fiscal year ended April 30, 2016, in-kind transactions associated with creations and redemptions were as follows:
Cost of Securities Received | Value of Securities Delivered | |||||||
Dynamic Large Cap Growth Portfolio | $ | 266,306,487 | $ | 157,411,218 | ||||
Dynamic Large Cap Value Portfolio | 395,775,578 | 460,247,244 | ||||||
Russell 2000 Equal Weight Portfolio | 12,809,631 | 14,549,031 | ||||||
Russell 2000 Pure Growth Portfolio | 35,046,325 | 37,796,078 | ||||||
Russell 2000 Pure Value Portfolio | 68,258,182 | 74,254,530 | ||||||
Russell Midcap Equal Weight Portfolio | 24,744,111 | 34,216,678 | ||||||
Russell Midcap Pure Growth Portfolio | 91,131,976 | 104,002,481 | ||||||
Russell Midcap Pure Value Portfolio | 43,123,972 | 44,728,569 | ||||||
Russell Top 200 Equal Weight Portfolio | 30,588,440 | 36,378,439 | ||||||
Russell Top 200 Pure Growth Portfolio | 179,149,401 | 171,608,139 | ||||||
Russell Top 200 Pure Value Portfolio | 57,037,494 | 31,115,321 | ||||||
Zacks Micro Cap Portfolio | — | 6,880,111 |
Gains (losses) on in-kind transactions are generally not considered taxable gains (losses) for federal income tax purposes.
At April 30, 2016, the aggregate cost and the net unrealized appreciation (depreciation) of investments for tax purposes were as follows:
Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation (Depreciation) | Cost | |||||||||||||
Dynamic Large Cap Growth Portfolio | $ | 41,767,532 | $ | (6,619,995 | ) | $ | 35,147,537 | $ | 408,566,432 | |||||||
Dynamic Large Cap Value Portfolio | 60,377,854 | (19,068,491 | ) | 41,309,363 | 934,095,309 | |||||||||||
Russell 2000 Equal Weight Portfolio | 1,111,205 | (1,742,474 | ) | (631,269 | ) | 13,725,384 | ||||||||||
Russell 2000 Pure Growth Portfolio | 2,135,366 | (5,289,662 | ) | (3,154,296 | ) | 31,982,609 | ||||||||||
Russell 2000 Pure Value Portfolio | 4,903,149 | (10,537,032 | ) | (5,633,883 | ) | 68,298,819 | ||||||||||
Russell Midcap Equal Weight Portfolio | 1,353,040 | (3,392,562 | ) | (2,039,522 | ) | 25,521,686 | ||||||||||
Russell Midcap Pure Growth Portfolio | 5,293,916 | (12,501,705 | ) | (7,207,789 | ) | 74,487,841 | ||||||||||
Russell Midcap Pure Value Portfolio | 3,303,857 | (4,802,088 | ) | (1,498,231 | ) | 54,268,918 | ||||||||||
Russell Top 200 Equal Weight Portfolio | 2,267,568 | (2,481,346 | ) | (213,778 | ) | 34,033,570 | ||||||||||
Russell Top 200 Pure Growth Portfolio | 10,336,775 | (11,823,677 | ) | (1,486,902 | ) | 152,897,999 | ||||||||||
Russell Top 200 Pure Value Portfolio | 2,342,512 | (1,319,522 | ) | 1,022,990 | 67,002,053 | |||||||||||
Zacks Micro Cap Portfolio | 2,277,045 | (794,696 | ) | 1,482,349 | 19,837,552 |
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Note 8. Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of in-kind transactions and expired capital loss carryforwards on April 30, 2016, amounts were reclassified between undistributed net investment income, 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, 2016, the reclassifications were as follows:
Undistributed Net Investment Income | Undistributed Net Realized Gain (Loss) | Shares of Beneficial Interest | ||||||||||
Dynamic Large Cap Growth Portfolio | $ | (105,819 | ) | $ | (9,054,835 | ) | $ | 9,160,654 | ||||
Dynamic Large Cap Value Portfolio | 101,687 | (50,264,549 | ) | 50,162,862 | ||||||||
Russell 2000 Equal Weight Portfolio | (904 | ) | (2,021,479 | ) | 2,022,383 | |||||||
Russell 2000 Pure Growth Portfolio | — | (975,891 | ) | 975,891 | ||||||||
Russell 2000 Pure Value Portfolio | 67,597 | (6,421,900 | ) | 6,354,303 | ||||||||
Russell Midcap Equal Weight Portfolio | 112 | (5,766,205 | ) | 5,766,093 | ||||||||
Russell Midcap Pure Growth Portfolio | — | (14,376,116 | ) | 14,376,116 | ||||||||
Russell Midcap Pure Value Portfolio | (19 | ) | (5,805,154 | ) | 5,805,173 | |||||||
Russell Top 200 Equal Weight Portfolio | — | (7,749,637 | ) | 7,749,637 | ||||||||
Russell Top 200 Pure Growth Portfolio | — | (32,597,245 | ) | 32,597,245 | ||||||||
Russell Top 200 Pure Value Portfolio | — | (3,896,224 | ) | 3,896,224 | ||||||||
Zacks Micro Cap Portfolio | 12,475 | 13,748,309 | (13,760,784 | ) |
Note 9. Trustees’ and Officer’s Fees
Trustees’ and Officer’s Fees include amounts accrued by the Funds to pay remuneration to the Independent Trustees and an Officer of the Trust. The Trustee who is an “interested person” of the Trust does 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. Obligations under the Plan represent unsecured claims against the general assets of the Funds.
Note 10. Capital
Shares are created and redeemed by each Fund only in Creation Units of 50,000 Shares. Only Authorized Participants are permitted to purchase or redeem Creation Units from the Funds. Such transactions are principally permitted in exchange for Deposit Securities, with a balancing cash component to equate the transaction to the NAV per Share of a Fund of the Trust on the transaction date. However, for all Funds, cash in an amount equivalent to the value of certain securities may be substituted, generally when the securities are not available in sufficient quantity for delivery, not eligible for trading by the Authorized Participant or as a result of other market circumstances.
To the extent that the Funds permit transactions in exchange for Deposit Securities, each Fund may issue Shares in advance of receipt of Deposit Securities subject to various conditions, including a requirement to maintain on deposit with the Trust cash at least equal to 105% of the market value of the missing Deposit Securities. In accordance with the Trust’s Participant Agreement, Creation Units will be issued to an Authorized Participant, notwithstanding the fact that the corresponding Deposit Securities have not been received in part or in whole, in reliance on the undertaking of the Authorized Participant to deliver the missing Deposit Securities as soon as possible, which undertaking shall be secured by the Authorized Participant’s delivery and maintenance of collateral consisting of cash in the form of U.S. dollars in immediately available funds having a value (marked-to-market daily) at least equal to 105%, which the Adviser may change from time to time, of the value of the missing Deposit Securities.
On February 18, 2016, mutual funds affiliated with the Funds’ Adviser purchased in the secondary market 1,019,916 Shares of Russell Top 200 Pure Growth Portfolio valued at $30,960,774 and 1,097,263 Shares of Russell Top 200 Pure Value Portfolio valued at $29,526,689.
Transactions in each Fund’s Shares are disclosed in detail in 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.
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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 Russell 2000 Equal Weight Portfolio, PowerShares Russell 2000 Pure Growth Portfolio, PowerShares Russell 2000 Pure Value Portfolio, PowerShares Russell Midcap Equal Weight Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure 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, 2016, the results of each of their operations for the year then ended, the changes 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, 2016 by correspondence with the custodian and brokers, and the application of alternative auditing procedures where confirmations of security purchases have not been received, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Chicago, IL
June 23, 2016
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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, 2016.
In addition to the fees and expenses which the PowerShares Russell 2000 Equal Weight Portfolio, PowerShares Russell 2000 Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio and PowerShares Zacks Micro Cap Portfolio (collectively, the “Portfolios”) bear directly, the Portfolios indirectly bear a pro rata share of the fees and expenses of the investment companies in which the Portfolios invest. The amount of fees and expenses incurred indirectly by the Portfolios will vary because the investment companies have varied expenses and fee levels and the Portfolios may own different proportions of the investment companies at different times. Estimated investment companies’ expenses are not expenses that are incurred directly by the Portfolios. They are expenses that are incurred directly by the investment companies and are deducted from the value of the investment companies the Portfolios invest in. The effect of the estimated investment companies’ expenses that the Portfolios bear indirectly is 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, expenses shown in the table do not include the expenses of the underlying funds, which are borne indirectly by the Fund. If transaction costs and indirect expenses were included, your costs would have been higher.
Beginning Account Value November 1, 2015 | Ending Account Value April 30, 2016 | 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 | $ | 993.45 | 0.57 | % | $ | 2.83 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.03 | 0.57 | 2.87 | ||||||||||||
PowerShares Dynamic Large Cap Value Portfolio (PWV) | ||||||||||||||||
Actual | 1,000.00 | 1,018.78 | 0.57 | 2.86 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.03 | 0.57 | 2.87 | ||||||||||||
PowerShares Russell 2000 Equal Weight Portfolio (EQWS) | ||||||||||||||||
Actual | 1,000.00 | 988.12 | 0.25 | 1.24 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,023.62 | 0.25 | 1.26 | ||||||||||||
PowerShares Russell 2000 Pure Growth Portfolio (PXSG) | ||||||||||||||||
Actual | 1,000.00 | 950.55 | 0.39 | 1.89 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.92 | 0.39 | 1.96 |
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Fees and Expenses (continued)
Beginning Account Value November 1, 2015 | Ending Account Value April 30, 2016 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period(1) | |||||||||||||
PowerShares Russell 2000 Pure Value Portfolio (PXSV) | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,002.06 | 0.39 | % | $ | 1.94 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.92 | 0.39 | 1.96 | ||||||||||||
PowerShares Russell Midcap Equal Weight Portfolio (EQWM) | ||||||||||||||||
Actual | 1,000.00 | 1,038.50 | 0.25 | 1.27 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,023.62 | 0.25 | 1.26 | ||||||||||||
PowerShares Russell Midcap Pure Growth Portfolio (PXMG) | ||||||||||||||||
Actual | 1,000.00 | 952.70 | 0.39 | 1.89 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.92 | 0.39 | 1.96 | ||||||||||||
PowerShares Russell Midcap Pure Value Portfolio (PXMV) | ||||||||||||||||
Actual | 1,000.00 | 1,057.66 | 0.39 | 2.00 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.92 | 0.39 | 1.96 | ||||||||||||
PowerShares Russell Top 200 Equal Weight Portfolio (EQWL) | ||||||||||||||||
Actual | 1,000.00 | 1,010.16 | 0.25 | 1.25 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,023.62 | 0.25 | 1.26 | ||||||||||||
PowerShares Russell Top 200 Pure Growth Portfolio (PXLG) | ||||||||||||||||
Actual | 1,000.00 | 965.28 | 0.39 | 1.91 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.92 | 0.39 | 1.96 | ||||||||||||
PowerShares Russell Top 200 Pure Value Portfolio (PXLV) | ||||||||||||||||
Actual | 1,000.00 | 1,020.30 | 0.39 | 1.96 | ||||||||||||
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 | 1,012.16 | 0.70 | 3.50 | ||||||||||||
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, 2016. 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. |
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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, 2016:
Qualified Dividend Income* | Dividends-Received Deduction* | |||||||
PowerShares Dynamic Large Cap Growth Portfolio | 100 | % | 100 | % | ||||
PowerShares Dynamic Large Cap Value Portfolio | 100 | % | 100 | % | ||||
PowerShares Russell 2000 Equal Weight Portfolio | 100 | % | 100 | % | ||||
PowerShares Russell 2000 Pure Growth Portfolio | 100 | % | 97 | % | ||||
PowerShares Russell 2000 Pure Value Portfolio | 81 | % | 78 | % | ||||
PowerShares Russell Midcap Equal Weight Portfolio | 100 | % | 100 | % | ||||
PowerShares Russell Midcap Pure Growth Portfolio | 100 | % | 95 | % | ||||
PowerShares Russell Midcap Pure Value Portfolio | 86 | % | 82 | % | ||||
PowerShares Russell Top 200 Equal Weight Portfolio | 100 | % | 100 | % | ||||
PowerShares Russell Top 200 Pure Growth Portfolio | 100 | % | 100 | % | ||||
PowerShares Russell Top 200 Pure Value Portfolio | 100 | % | 100 | % | ||||
PowerShares Zacks Micro Cap Portfolio | 100 | % | 100 | % |
* | The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year. |
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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, 2016.
Name, Address and Year of Birth 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—1958 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Chairman of the Nominating and Governance Committee and Trustee | Chairman of the Nominating and Governance Committee and 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). | 124 | None | |||||
Todd J. Barre—1957 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Trustee | Since 2010 | Assistant Professor of Business, Trinity Christian College (2010-2016); 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. | 124 | None | |||||
Marc M. Kole—1960 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Chairman of the Audit Committee and Trustee | Chairman of the Audit Committee since 2008; and Trustee since 2006 | Senior Director of Finance, By The Hand Club for Kids (2015-Present); formerly: Chief Financial Officer, Hope Network (social services) (2008-2012); Assistant Vice President and Controller, Priority Health (health insurance) (2005-2008); Senior Vice President of Finance, United Healthcare (2004-2005); Chief Accounting Officer, Senior Vice President of Finance, Oxford Health Plans (2000-2004); Audit Partner, Arthur Andersen LLP (1996-2000). | 124 | None | |||||
Yung Bong Lim—1964 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Chairman of the Investment Oversight Committee and Trustee | Chairman of the Investment Oversight Committee since 2014; Trustee since 2013 | Managing Partner, Residential Dynamics Group LLC (2008-Present); formerly, Managing Director, Citadel Investment Group, L.L.C. (1999-2007). | 124 | 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, 2016, the “Fund Family” consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 71 portfolios advised by the Adviser. |
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Trustees and Officers (continued)
Name, Address and Year of Birth 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 | |||||
Philip M. Nussbaum—1961 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Trustee | Since 2003 | Chairman, Performance Trust Capital Partners (2004-Present). | 124 | None | |||||
Gary R. Wicker—1961 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Trustee | Since 2013 | Senior Vice President of Global Finance and Chief Financial Officer at RBC Ministries (publishing company) (2013-Present); formerly, Executive Vice President and Chief Financial Officer, Zondervan Publishing (a division of Harper Collins/NewsCorp) (2007-2012); Senior Vice President and Group Controller (2005-2006), Senior Vice President and Chief Financial Officer (2003-2004), Chief Financial Officer (2001-2003), Vice President, Finance and Controller (1999-2001) and Assistant Controller (1997-1999), divisions of The Thomson Corporation (information services provider). | 124 | None | |||||
Donald H. Wilson—1959 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Chairman of the Board and Trustee | Chairman since 2012; Trustee since 2006 | Chairman and Chief Executive Officer, Stone Pillar Advisors, Ltd. (2010-Present); formerly, Chairman, President and Chief Executive Officer, Community Financial Shares, Inc. and Community Bank—Wheaton/Glen Ellyn (subsidiary) (2013-2015); 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). | 124 | 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, 2016, the “Fund Family” consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 71 portfolios advised by the Adviser. |
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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 Year of Birth 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 Trustee | Other Directorships Held by Non-Independent Trustees During the Past 5 Years | |||||
Kevin M. Carome—1956 Invesco Ltd. Two Peachtree Pointe, 1555 Peachtree St., N.E., Suite 1800 Atlanta, GA 30309 | Trustee | Since 2010 | Senior Managing Director, Secretary and General Counsel, Invesco Ltd. (2007-Present); Director, Invesco Advisers, Inc. (2009-Present); Director, Invesco Finance PLC, and Invesco Holding Company Limited; Director and Executive Vice President, Invesco Finance, Inc., Invesco Group Services, Inc., Invesco Investments (Bermuda) Ltd., Invesco North American Holdings, Inc., IVZ, Inc. and Invesco Asset Management (Bermuda) Ltd.; Manager, Horizon Flight Works LLC; Director and Secretary, IVZ Bahamas Private Limited; formerly, Director, INVESCO Funds Group, Inc., Senior Vice President, Secretary and General Counsel, Invesco Advisers, 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. | 124 | 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, 2016, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 71 portfolios advised by the Adviser. |
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Trustees and Officers (continued)
Name, Address and Year of Birth of Executive Officers | Position(s) Held with Trust | Length of Time Served* | Principal Occupation(s) During Past 5 Years | |||
Daniel E. Draper—1968 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | President and Principal Executive Officer | Since 2015 | President and Principal Executive Officer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2015-Present); Chief Executive Officer (2016-Present) and Managing Director (2013-Present), Invesco PowerShares Capital Management LLC; Senior Vice President, Invesco Distributors, Inc. (2014-Present); formerly, Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-2015) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-2015); Managing Director, Credit Suisse Asset Management (2010-2013) and Lyxor Asset Management/Societe Generale (2007-2010). | |||
Steven M. Hill—1964 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Vice President and Treasurer | Since 2013 | Vice President and Treasurer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Global ETF Administration, Invesco PowerShares Capital Management LLC (2011-Present); Principal Financial and Accounting Officer—Investment Pools, Invesco PowerShares Capital Management LLC (2015-Present); formerly, Senior Managing Director and Chief Financial Officer, Destra Capital Management LLC and its subsidiaries (2010-2011); Chief Financial Officer, Destra Investment Trust and Destra Investment Trust II (2010-2011); Senior Managing Director, Claymore Securities, Inc. (2003-2010); and Chief Financial Officer, Claymore sponsored mutual funds (2003-2010). | |||
Peter Hubbard—1981 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Vice President | Since 2009 | Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2009-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Vice President and Director of Portfolio Management, Invesco PowerShares Capital Management LLC (2010-Present); formerly, Vice President of Portfolio Management, Invesco PowerShares Capital Management LLC (2008-2010); 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). | |||
Christopher Joe—1969 Invesco PowerShares Capital Management LLC 11 Greenway Plaza, Suite 1000 Houston, TX 77046-1173 | Chief Compliance Officer | Since 2012 | Chief Compliance Officer of Invesco PowerShares Capital Management LLC (2015-Present); Chief Compliance Officer of PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2012-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); formerly, Chief Compliance Officer, Invesco Investment Advisers, LLC (registered investment adviser) (2010–2013), U.S. Compliance Director, Invesco, Ltd. (2006-2014) and Deputy Chief Compliance Officer of Invesco Advisers, Inc. (2014-2015). |
* | 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. |
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Trustees and Officers (continued)
Name, Address and Year of Birth of Executive Officers | Position(s) Held with Trust | Length of Time Served* | Principal Occupation(s) During Past 5 Years | |||
Sheri Morris—1964 Invesco Management Group, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046 | Vice President | Since 2012 | President, Principal Executive Officer and Treasurer, The Invesco Funds (2016-Present); Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) (2009-Present) and Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2012-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); formerly, Vice President, Treasurer and Principal Financial Officer, The Invesco Funds (2008-2016); 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 (2011-2013); Vice President, Invesco Aim 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—1974 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Secretary | Since 2011 | Secretary, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2011-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Legal (2010-Present) and Secretary (2015-Present), 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). | |||
Rudolf E. Reitmann—1971 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Vice President | Since 2013 | Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Global Exchange Traded Funds Services, Invesco PowerShares Capital Management LLC (2013-Present). | |||
David Warren—1957 Invesco Canada Ltd. 5140 Yonge Street, Suite 800 Toronto, Ontario M2N 6X7 | Vice President | Since 2009 | Vice President, 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 (2009-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Managing Director—Chief Administrative Officer, Americas, Invesco PowerShares Capital Management LLC; Senior Vice President, Invesco Advisers, Inc. (2009-Present); Director, Invesco Inc. (2009-Present); Senior Vice President, Invesco Management Group, Inc. (2007-Present); Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (formerly, Invesco Trimark Ltd.); Chief Administrative Officer, North American Retail, Invesco Ltd. (2007-Present); Director, Invesco Corporate Class Inc. (2014-Present); Director, Invesco Global Direct Real Estate Feeder GP Ltd. (2015-Present); Director, Invesco Canada Holdings Inc. (2002-Present); Director, Invesco Financial Services Ltd. / Services Financiers Invesco Ltée and Trimark Investments Ltd./Placements Trimark Ltée (2014-Present); Director, Invesco IP Holdings (Canada) Ltd. (2016-Present); Director, Invesco Global Direct Real Estate GP Ltd. (2015-Present); formerly, Executive Vice President and Chief Financial Officer, Invesco Inc. (2009-2015); Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (formerly, Invesco Trimark Ltd.) (2000-2011). |
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. |
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Board Considerations Regarding Continuation of Investment Advisory Agreement
At a meeting held on April 14, 2016, 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 51 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 Momentum Portfolio
PowerShares DWA Basic Materials Momentum Portfolio
PowerShares DWA Consumer Cyclicals Momentum Portfolio
PowerShares DWA Consumer Staples Momentum Portfolio
PowerShares DWA Energy Momentum Portfolio
PowerShares DWA Financial Momentum Portfolio
PowerShares DWA Healthcare Momentum Portfolio
PowerShares DWA Industrials Momentum Portfolio
PowerShares DWA NASDAQ Momentum Portfolio
PowerShares DWA Technology Momentum Portfolio
PowerShares DWA Utilities Momentum Portfolio
PowerShares Dynamic Biotechnology & Genome Portfolio
PowerShares Dynamic Building & Construction Portfolio
PowerShares Dynamic Energy Exploration & Production Portfolio
PowerShares Dynamic Food & Beverage Portfolio
PowerShares Dynamic Large Cap Growth Portfolio
PowerShares Dynamic Large Cap Value Portfolio
PowerShares Dynamic Leisure and Entertainment Portfolio
PowerShares Dynamic Market Portfolio
PowerShares Dynamic Media Portfolio
PowerShares Dynamic Networking Portfolio
PowerShares Dynamic Oil & Gas Services Portfolio
PowerShares Dynamic Pharmaceuticals Portfolio
PowerShares Dynamic Retail Portfolio
PowerShares Dynamic Semiconductors Portfolio
PowerShares Dynamic Software Portfolio
PowerShares Financial Preferred Portfolio
PowerShares FTSE RAFI US 1000 Portfolio
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio
PowerShares Global Listed Private Equity Portfolio
PowerShares Golden Dragon China Portfolio
PowerShares High Yield Equity Dividend AchieversTM Portfolio
PowerShares International Dividend AchieversTM Portfolio
PowerShares Russell Top 200 Equal Weight Portfolio
PowerShares Russell Top 200 Pure Growth Portfolio
PowerShares Russell Top 200 Pure Value Portfolio
PowerShares Russell Midcap Equal Weight Portfolio
PowerShares Russell Midcap Pure Growth Portfolio
PowerShares Russell Midcap Pure Value Portfolio
PowerShares Russell 2000 Equal Weight Portfolio
PowerShares Russell 2000 Pure Growth Portfolio
PowerShares Russell 2000 Pure Value Portfolio
PowerShares S&P 500® 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 for each Fund, (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 to and amounts paid by other registered investment companies and (vii) any benefits realized by the Adviser from its relationship with each Fund.
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 staffing, including operational support 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 and/or oversight of execution of portfolio transactions on behalf of the Funds. The Trustees also reviewed information on the performance of the Funds and their underlying indexes for the one-year, three-year, five-year, ten-year and since-inception periods ended December 31, 2015, as applicable, including reports for each of those periods 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 certain Funds and their underlying indexes. In reviewing the tracking error reports, the Trustees considered information provided by Ibbotson Associates, a consultant to the Independent Trustees, with respect to general expected tracking error ranges and various explanations for any tracking error. The Trustees noted that for each applicable period the correlation and tracking error for
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Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)
each Fund was within the targeted range set forth in the Trust’s registration statement and 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, effort and resources 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 advisory fee and net expense ratio, as compared to information compiled by the Adviser from Lipper Inc. databases on the advisory fees and net expense ratios of comparable exchange-traded funds (“ETFs”), open-end (non-ETF) index funds and open-end (non-ETF) 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 Russell Top 200 Equal Weight Portfolio, PowerShares Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Equal Weight Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Equal Weight Portfolio, PowerShares Russell 2000 Pure Growth Portfolio, PowerShares Russell 2000 Pure Value Portfolio and PowerShares S&P 500® Quality 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; |
● | 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 Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Pure Growth, Portfolio, PowerShares Russell 2000 Pure Value Portfolio and PowerShares S&P 500® Quality Portfolio; and |
● | 0.25% of the Fund’s average daily net assets for each of PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight Portfolio (The net advisory fees, after giving effect to the Expense Caps below, were 0.01%, -0.05% and -0.39% and, respectively, for PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight Portfolio.). |
The Trustees also noted that the Adviser has agreed to waive a portion of its advisory fee and/or pay expenses (an “Expense Cap”) to the extent necessary to prevent the annual operating expenses of each Fund from exceeding the percentage of that Fund’s average daily net assets, at least until August 31, 2017, 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 DWA NASDAQ Momentum 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; |
● | 0.39%, 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 Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Pure Growth Portfolio and PowerShares Russell 2000 Pure Value Portfolio; |
● | 0.29%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for PowerShares S&P 500® Quality Portfolio; |
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Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)
● | 0.25%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses for PowerShares Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight Portfolio; |
● | 0.60%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for PowerShares DWA Basic Materials Momentum Portfolio, PowerShares DWA Consumer Cyclicals Momentum Portfolio, PowerShares DWA Consumer Staples Momentum Portfolio, PowerShares DWA Energy Momentum Portfolio, PowerShares DWA Financial Momentum Portfolio, PowerShares DWA Healthcare Momentum Portfolio, PowerShares DWA Industrials Momentum Portfolio, PowerShares DWA Technology Momentum Portfolio and PowerShares DWA Utilities Momentum Portfolio; 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 serve as the investment adviser to any clients, other than other ETFs also overseen by the Trustees, with comparable investment strategies as the Funds, but that the Adviser provides sub-advisory services to clients with comparable investment strategies as certain of the Funds. The Trustees further noted the Adviser’s explanation with respect to the sub-advisory fees it receives for such services in comparison to the advisory fees charged to the Funds. The Trustees noted that the advisory fees for certain Funds were equal to or lower than the median advisory fees of their ETF and open-end index peer funds as illustrated in the table below. The Trustees also noted that the advisory fees for all of the Funds were lower than the median advisory fees of their open-end actively-managed peer funds.
PowerShares Fund | Equal to/Lower than ETF Median | Equal to/Lower than Open-End Index Fund Median* | Equal to/Lower than Open-End Active Fund Median | |||||||
PowerShares Aerospace & Defense Portfolio | X | |||||||||
PowerShares Buyback Achievers Portfolio | X | |||||||||
PowerShares Cleantech Portfolio | X | |||||||||
PowerShares Dividend Achievers Portfolio | X | X | ||||||||
PowerShares DWA Basic Materials Momentum Portfolio | X | |||||||||
PowerShares DWA Consumer Cyclicals Momentum Portfolio | X | |||||||||
PowerShares DWA Consumer Staples Momentum Portfolio | X | |||||||||
PowerShares DWA Energy Momentum Portfolio | X | |||||||||
PowerShares DWA Financial Momentum Portfolio | X | |||||||||
PowerShares DWA Healthcare Momentum Portfolio | X | |||||||||
PowerShares DWA Industrials Momentum Portfolio | X | |||||||||
PowerShares DWA Momentum Portfolio | X | |||||||||
PowerShares DWA NASDAQ Momentum Portfolio | X | |||||||||
PowerShares DWA Technology Momentum Portfolio | X | |||||||||
PowerShares DWA Utilities Momentum Portfolio | X | |||||||||
PowerShares Dynamic Biotechnology & Genome Portfolio | X | |||||||||
PowerShares Dynamic Building & Construction Portfolio | X | |||||||||
PowerShares Dynamic Energy Exploration & Production Portfolio | X | |||||||||
PowerShares Dynamic Food & Beverage Portfolio | X | |||||||||
PowerShares Dynamic Large Cap Growth Portfolio | X | |||||||||
PowerShares Dynamic Large Cap Value Portfolio | X | |||||||||
PowerShares Dynamic Leisure and Entertainment Portfolio | X | |||||||||
PowerShares Dynamic Market Portfolio | X | |||||||||
PowerShares Dynamic Media Portfolio | X | |||||||||
PowerShares Dynamic Networking Portfolio | X |
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Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)
PowerShares Fund | Equal to/Lower than ETF Median | Equal to/Lower than Open-End Index Fund Median* | Equal to/Lower than Open-End Active Fund Median | |||||||||
PowerShares Dynamic Oil & Gas Services Portfolio | X | |||||||||||
PowerShares Dynamic Pharmaceuticals Portfolio | X | |||||||||||
PowerShares Dynamic Retail Portfolio | X | |||||||||||
PowerShares Dynamic Semiconductors Portfolio | X | |||||||||||
PowerShares Dynamic Software Portfolio | X | |||||||||||
PowerShares Financial Preferred Portfolio | N/A | X | ||||||||||
PowerShares FTSE RAFI US 1000 Portfolio | X | |||||||||||
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio | X | X | ||||||||||
PowerShares Russell Top 200 Equal Weight Portfolio | X | X | ||||||||||
PowerShares Russell Top 200 Pure Growth Portfolio | X | |||||||||||
PowerShares Russell Top 200 Pure Value Portfolio | X | |||||||||||
PowerShares Russell Midcap Equal Weight Portfolio | X | |||||||||||
PowerShares Russell Midcap Pure Growth Portfolio | X | X | X | |||||||||
PowerShares Russell Midcap Pure Value Portfolio | X | X | ||||||||||
PowerShares Russell 2000 Equal Weight Portfolio | X | X | ||||||||||
PowerShares Russell 2000 Pure Growth Portfolio | X | X | ||||||||||
PowerShares Russell 2000 Pure Value Portfolio | X | |||||||||||
PowerShares Global Listed Private Equity Portfolio | N/A | X | ||||||||||
PowerShares Golden Dragon China Portfolio | X | N/A | X | |||||||||
PowerShares High Yield Equity Dividend Achievers Portfolio | X | X | ||||||||||
PowerShares International Dividend Achievers Portfolio | X | X | X | |||||||||
PowerShares S&P 500 Quality Portfolio | X | |||||||||||
PowerShares Water Resources Portfolio | X | |||||||||||
PowerShares WilderHill Clean Energy Portfolio | X | |||||||||||
PowerShares WilderHill Progressive Energy Portfolio | X | |||||||||||
PowerShares Zacks Micro Cap Portfolio | X |
* | The information provided by the Adviser indicated that certain Funds did not have open-end index fund peers. Those Funds have been designated with an “N/A” for not available. |
The Trustees determined that the advisory fees were reasonable, noting the nature of the indexes, the distinguishing factors of the Funds, and the administrative, operational and management oversight costs for the Adviser. The Trustees noted that the net expense ratios for certain Funds were equal to or lower than the median net expense ratios of their ETF and open-end index peer funds as illustrated in the table below. The Trustees also noted that the net expense ratios for all of the Funds were lower than the median net expense ratios of their open-end actively-managed peer funds.
PowerShares Fund | Equal to/Lower than ETF Median | Equal to/Lower than Open-End Index Fund Median | Equal to/Lower than Open-End Active Fund Median | |||||||
PowerShares Aerospace & Defense Portfolio | X | |||||||||
PowerShares Buyback Achievers Portfolio | X | |||||||||
PowerShares Cleantech Portfolio | X | |||||||||
PowerShares Dividend Achievers Portfolio | X | X | ||||||||
PowerShares DWA Basic Materials Momentum Portfolio | X | |||||||||
PowerShares DWA Consumer Cyclicals Momentum Portfolio | X |
| 130 |
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Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)
PowerShares Fund | Equal to/Lower than ETF Median | Equal to/Lower than Open-End Index Fund Median | Equal to/Lower than Open-End Active Fund Median | |||||||||
PowerShares DWA Consumer Staples Momentum Portfolio | X | |||||||||||
PowerShares DWA Energy Momentum Portfolio | X | |||||||||||
PowerShares DWA Financial Momentum Portfolio | X | |||||||||||
PowerShares DWA Healthcare Momentum Portfolio | X | |||||||||||
PowerShares DWA Industrials Momentum Portfolio | X | |||||||||||
PowerShares DWA Momentum Portfolio | X | X | ||||||||||
PowerShares DWA NASDAQ Momentum Portfolio | X | X | ||||||||||
PowerShares DWA Technology Momentum Portfolio | X | |||||||||||
PowerShares DWA Utilities Momentum Portfolio | X | |||||||||||
PowerShares Dynamic Biotechnology & Genome Portfolio | X | |||||||||||
PowerShares Dynamic Building & Construction Portfolio | X | |||||||||||
PowerShares Dynamic Energy Exploration & Production Portfolio | X | |||||||||||
PowerShares Dynamic Food & Beverage Portfolio | X | |||||||||||
PowerShares Dynamic Large Cap Growth Portfolio | X | |||||||||||
PowerShares Dynamic Large Cap Value Portfolio | X | |||||||||||
PowerShares Dynamic Leisure and Entertainment Portfolio | X | |||||||||||
PowerShares Dynamic Market Portfolio | X | |||||||||||
PowerShares Dynamic Media Portfolio | X | |||||||||||
PowerShares Dynamic Networking Portfolio | X | |||||||||||
PowerShares Dynamic Oil & Gas Services Portfolio | X | |||||||||||
PowerShares Dynamic Pharmaceuticals Portfolio | X | |||||||||||
PowerShares Dynamic Retail Portfolio | X | |||||||||||
PowerShares Dynamic Semiconductors Portfolio | X | |||||||||||
PowerShares Dynamic Software Portfolio | X | |||||||||||
PowerShares Financial Preferred Portfolio | N/A | X | ||||||||||
PowerShares FTSE RAFI US 1000 Portfolio | X | X | X | |||||||||
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio | X | X | X | |||||||||
PowerShares Russell Top 200 Equal Weight Portfolio | X | X | ||||||||||
PowerShares Russell Top 200 Pure Growth Portfolio | X | X | ||||||||||
PowerShares Russell Top 200 Pure Value Portfolio | X | |||||||||||
PowerShares Russell Midcap Equal Weight Portfolio | X | X | ||||||||||
PowerShares Russell Midcap Pure Growth Portfolio | X | X | X | |||||||||
PowerShares Russell Midcap Pure Value Portfolio | X | X | ||||||||||
PowerShares Russell 2000 Equal Weight Portfolio | X | X | X | |||||||||
PowerShares Russell 2000 Pure Growth Portfolio | X | X | ||||||||||
PowerShares Russell 2000 Pure Value Portfolio | X | X | ||||||||||
PowerShares Global Listed Private Equity Portfolio | N/A | X | ||||||||||
PowerShares Golden Dragon China Portfolio | X | N/A | X | |||||||||
PowerShares High Yield Equity Dividend Achievers Portfolio | X | X | ||||||||||
PowerShares International Dividend Achievers Portfolio | X | X | X | |||||||||
PowerShares S&P 500 Quality Portfolio | X | X | X | |||||||||
PowerShares Water Resources Portfolio | X |
| 131 |
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Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)
PowerShares Fund | Equal to/Lower than ETF Median | Equal to/Lower than Open-End Index Fund Median | Equal to/Lower than Open-End Active Fund Median | |||||
PowerShares WilderHill Clean Energy Portfolio | X | |||||||
PowerShares WilderHill Progressive Energy Portfolio | X | |||||||
PowerShares Zacks Micro Cap Portfolio | X |
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 overall profitability as well as the estimated profitability to the Adviser from its relationship to each Fund. The Trustees concluded that the overall and estimated profitability to the Adviser 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 Cap agreed to by the Adviser. 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 DWA NASDAQ Momentum 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.
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.
| 132 |
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(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 each Fund 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.
Frequency Distribution of Discounts and Premiums
A table showing the number of days the market price of each Fund’s shares was greater than the Fund’s net asset value, and the number of days it was less than the Fund’s net asset value (i.e., premium or discount) for the most recently completed calendar year, and the calendar quarters since that year end (or the life of the Fund, if shorter) may be found at the Fund’s website at www.invescopowershares.com.
©2016 Invesco PowerShares Capital Management LLC | P-PS-AR-5 | |||||
3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | ||||||
invescopowershares.com 800.983.0903 | @PowerShares |
April 30, 2016 |
2016 Annual Report to Shareholders
PPA | PowerShares Aerospace & Defense Portfolio | |
PZD | PowerShares CleantechTM Portfolio | |
PDP | PowerShares DWA Momentum Portfolio | |
PSP | PowerShares Global Listed Private Equity Portfolio | |
PGJ | PowerShares Golden Dragon China Portfolio | |
PBP | PowerShares S&P 500 BuyWrite Portfolio | |
SPHQ | PowerShares S&P 500® Quality Portfolio (formerly, PowerShares S&P 500® High Quality Portfolio) | |
PHO | PowerShares Water Resources Portfolio | |
PBW | PowerShares WilderHill Clean Energy Portfolio | |
PUW | PowerShares WilderHill Progressive Energy Portfolio |
The Market Environment | 3 | |||
Manager’s Analysis | 4 | |||
Specialty Portfolios | ||||
Schedules of Investments | ||||
26 | ||||
27 | ||||
29 | ||||
31 | ||||
33 | ||||
35 | ||||
PowerShares S&P 500® Quality Portfolio (SPHQ) | 40 | |||
42 | ||||
43 | ||||
44 | ||||
Statements of Assets and Liabilities | 46 | |||
Statements of Operations | 48 | |||
Statements of Changes in Net Assets | 50 | |||
Financial Highlights | 54 | |||
Notes to Financial Statements | 60 | |||
Report of Independent Registered Public Accounting Firm | 74 | |||
Fees and Expenses | 75 | |||
Tax Information | 77 | |||
Trustees and Officers | 78 | |||
Board Considerations Regarding Continuation of Investment Advisory Agreement | 83 |
| 2 |
|
US Equity
Although the health of individual economic sectors varied dramatically, the US economy overall continued its slow but steady growth during the fiscal year ended April 30, 2016. This modest growth led to recurring debate over whether the US economy could withstand global recessionary forces. Many energy, industrial and materials companies experienced cyclical downturns resembling a mild recession even as many consumer-related companies benefited from continued low interest rates, increased availability of credit and a better employment picture. Another significant downturn in oil prices reduced capital investment but also reduced consumers’ energy and gasoline costs.
In the first half of the reporting period, US equity market performance was greatly affected by expectations of when, and whether, the US Federal Reserve (the “Fed”) might raise interest rates—and the impact the Fed’s action might have. Markets moved lower in the summer of 2015 as a significant downturn in China’s financial markets and weak global economic growth led to increased concern about the sustainability of US economic growth. In the fall, markets rallied and the Fed saw enough economic stabilization to finally raise interest rates.
US stocks began 2016 on a negative note. Together with a sharp decline in oil prices, this suggested a global recession might be imminent and caused investors to become decidedly risk averse; this helped short-term and income-oriented investments, but hurt longer-term and growth-oriented investments. As companies reported earnings and fundamentals that were better than had been feared, stocks rallied sharply in late February and March. Additionally, oil prices strengthened modestly on the back of a weaker US dollar and as Saudi Arabia and Russia considered a freeze on their oil output. Overall, US equity markets were mixed, with the S&P 500 Index, considered representative of the performance of the US stock market, finishing the reporting period modestly higher.
Global Equity
The global economy continued to expand, albeit slowly, during the fiscal year ended April 30, 2016. However, that growth became increasingly uneven across developed and emerging economies. Central bank policies also began to diverge as the Fed followed through on its commitment to normalize monetary policy by raising interest rates—even as the European Central Bank extended its asset purchase program and the Bank of Japan introduced additional quantitative easing.
Global equity markets faced significant headwinds during the fiscal year, although developed markets were generally able to better withstand these headwinds than more fragile emerging markets. As the reporting period began, diverging monetary policy caused the US dollar to strengthen against many other currencies. During
the summer of 2015, China’s surprise devaluation of the renminbi and a significant downturn in its financial markets triggered a massive sell-off in global equity markets, particularly in already-vulnerable emerging markets. In the fall, markets around the world began to regain their footing. However, 2016 began on a sharply negative note, with equity markets falling as the price of oil declined. In February 2016, markets reversed course, bouncing back sharply as economic data and earnings were better than had been feared. In Japan and Europe, central banks signaled their ongoing commitment to very loose monetary policy, but in the US, the Fed indicated that it may delay additional interest rate increases. As a result, the US dollar fell sharply against the euro and Japanese yen; this benefited oil and stock prices generally. For the reporting period as a whole, US equity markets were mixed, while developed international equity markets were down modestly. Although emerging markets rallied strongly toward the end of the reporting period, many—particularly China, Brazil and Russia—were down significantly for the fiscal year.
| 3 |
|
PPA | Manager’s Analysis | |
PowerShares Aerospace & Defense Portfolio (PPA) |
As an index fund, the PowerShares Aerospace & Defense Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the SPADE® Defense Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of aerospace and defense companies that comprise the Index.
ISBC, LLC (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its guidelines and mandated procedures in selecting constituents for inclusion in the Index, the Index Provider seeks to measure the performance of securities in the defense, military, homeland security and space marketplace. The Index includes securities of companies that are principally engaged in the development, manufacture, operation and support of U.S. defense, military, homeland security and space operations listed on the NYSE, NYSE MKT or quoted on the NASDAQ. To have its securities eligible for inclusion in the Index, a company’s securities must, during the 25 days prior to the date that its securities are included in the Index, have maintained a minimum $100 million market valuation, a minimum $5 daily sale price and a minimum average daily trading volume of 50,000 shares. A company must also have a quarterly sales/revenue/ turnover of at least $10 million for the two announced quarters prior to the inclusion date. Companies that qualify and are selected for inclusion in the Index are weighted according to a modified market capitalization methodology. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned 3.46%. On a net asset value (“NAV”) basis, the Fund returned 3.43%. During the same time period, the Index returned 4.10%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.
During this same time period, the S&P Composite 1500 Aerospace & Defense Index (the “Benchmark Index”) returned 7.71%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 30 securities. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors due primarily to its exposure to the aerospace and defense industry.
The performance of the Fund differed from the Benchmark Index in part because the Index, and as such the Fund, limits its constituents to companies that are involved in U.S. defense, military, homeland security and space operations, whereas the Benchmark Index includes companies that are involved in the commercial aerospace industry as well.
Relative to the Benchmark Index, the Fund was most overweight in the IT services industry and most underweight in the aerospace & defense industry during the fiscal year ended
April 30, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to stock selection within the diversified telecommunication services and software industries.
For the fiscal year ended April 30, 2016, the aerospace & defense industry contributed most significantly to the Fund’s return, followed by the IT services and communications equipment industries, respectively. The software industry detracted most significantly from the Fund’s return, followed by the diversified telecommunication services (no longer held at fiscal year-end) and electronic equipment, instruments & components industries, respectively.
Positions that contributed most significantly to the Fund’s return included Lockheed Martin Corp., an aerospace & defense company (portfolio average weight of 6.65%), and Northrop Grumman Corp., an aerospace & defense company (portfolio average weight of 4.80%). Positions that detracted most significantly from the Fund’s return included FireEye, Inc., a software company (portfolio average weight of 1.75%), and Esterline Technologies Corp., an aerospace & defense company (portfolio average weight of 0.91%).
Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Aerospace & Defense | 77.7 | |||
IT Services | 6.8 | |||
Communications Equipment | 5.4 | |||
Containers & Packaging | 3.9 | |||
Machinery | 2.7 | |||
Electronic Equipment, Instruments & Components | 2.0 | |||
Software | 1.1 | |||
Trading Companies & Distributors | 0.4 | |||
Money Market Fund Plus Other Assets Less Liabilities | 0.0 | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
United Technologies Corp. | 6.9 | |||
Lockheed Martin Corp. | 6.8 | |||
Honeywell International, Inc. | 6.6 | |||
Boeing Co. (The) | 6.6 | |||
General Dynamics Corp. | 6.6 | |||
Raytheon Co. | 5.8 | |||
Northrop Grumman Corp. | 5.7 | |||
TransDigm Group, Inc. | 4.0 | |||
Textron, Inc. | 4.0 | |||
L-3 Communications Holdings, Inc. | 3.9 | |||
Total | 56.9 |
* | Excluding money market fund holdings. |
| 4 |
|
PowerShares Aerospace & Defense Portfolio (PPA) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2016
1 Year | 3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years Cumulative | 10 Years Average Annualized | 10 Years Cumulative | Fund Inception† | |||||||||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||||||||||
SPADE® Defense Index | 4.10 | % | 18.39 | % | 65.93 | % | 14.41 | % | 96.03 | % | 9.54 | % | 148.76 | % | 10.70 | % | 191.21 | % | ||||||||||||||||||||
S&P Composite 1500 Aerospace & Defense Index | 7.71 | 18.88 | 68.00 | 15.00 | 101.14 | 10.47 | 170.77 | 12.21 | 235.70 | |||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||
NAV Return | 3.43 | 17.63 | 62.77 | 13.66 | 89.66 | 8.84 | 133.18 | 9.99 | 172.02 | |||||||||||||||||||||||||||||
Market Price Return | 3.46 | 17.65 | 62.86 | 13.65 | 89.62 | 8.83 | 133.13 | 9.99 | 172.14 |
Fund Inception: October 26, 2005
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.66%. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund
at NAV and Market 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 and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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.
† | Fund, Index and Benchmark Index returns are based on the inception date of the Fund. |
| 5 |
|
PZD | Manager’s Analysis | |
PowerShares CleantechTM Portfolio (PZD) |
As an index fund, the PowerShares CleantechTM Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of The Cleantech IndexTM (PO) (the “Index”). The Fund generally will invest at least 90% of its total assets in stocks of clean technology (or “cleantech”) companies that comprise the Index and American depositary receipts based on the stocks in the Index.
Cleantech Indices LLC (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its guidelines and mandated procedures, the Index Provider identifies the securities for inclusion in the Index. The Index Provider considers a company to be a cleantech company when it derives at least 50% of its revenues or operating profits from cleantech businesses, which are defined as: businesses that provide knowledge-based products (or services) that add economic value by reducing cost and raising productivity and/or product performance, while reducing the consumption of resources and the negative impact on the environment and public health. The Index focuses on companies that are leaders in the innovation and commercial deployment of cleantech products across a broad range of industries. To be eligible for inclusion in the Index, a company must derive at least 50% of its sales or operating profits from cleantech businesses, maintain a three-month average market capitalization of at least $200 million, maintain a one-month average floated market capitalization of at least $150 million, maintain a listing on a securities exchange, and have a minimum average trading value of at least $200,000 per trading day for the trailing three-month period. The Index Provider further screens securities that meet the selection criteria. These screens include, but are not limited to, profitability, earnings growth and quality, business strategy, sector leadership and position, sector redundancy, intellectual property, impact on the environment, management quality, solvency, existing litigation and governance issues. In general, the Index equally weights its component securities within several bands based upon their market capitalization. Below a certain threshold, the Index Provider determines the bands based upon floated market capitalization. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned (0.05)%. On a net asset value (“NAV”) basis, the Fund returned 0.12%. During the same time period, the Index returned (0.75)%. During the fiscal year, the Fund fully replicated the components of the Index. The Fund outperformed the return of its Index, despite incurring fees and operating expenses, primarily due to the Index being calculated on a price return basis, which does not reflect any dividend income received from constituent securities, while the Fund’s NAV basis return reflects this income. In addition, the Fund’s return was benefitted by revenue generated through the Fund’s securities lending program.
For the fiscal year ended April 30, 2016, the professional services industry contributed most significantly to the Fund’s return, followed by the machinery and life sciences tools & services industries, respectively. The auto components industry detracted
most significantly from the Fund’s return, followed by the independent power and renewable electricity producers and communications equipment industries, respectively.
Positions that contributed most significantly to the Fund’s return included Vestas Wind Systems A/S, an electrical equipment company (portfolio average weight of 3.17%), and SMA Solar Technology AG, a semiconductors & semiconductor equipment company (portfolio average weight of 1.02%). Positions that detracted most significantly from the Fund’s return included BorgWarner Inc., an auto components company (portfolio average weight of 2.69%), and Sensata Technologies Holding NV, an electrical equipment company (portfolio average weight of 2.73%).
Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Electrical Equipment | 19.2 | |||
Machinery | 11.5 | |||
Semiconductors & Semiconductor Equipment | 9.8 | |||
Software | 8.1 | |||
Professional Services | 7.9 | |||
Electronic Equipment, Instruments & Components | 7.5 | |||
Chemicals | 6.6 | |||
Industrial Conglomerates | 6.6 | |||
Auto Components | 6.0 | |||
Independent Power & Renewable Electricity Producers | 3.2 | |||
Life Sciences Tools & Services | 2.8 | |||
Aerospace & Defense | 2.7 | |||
Building Products | 2.6 | |||
Commercial Services & Supplies | 2.0 | |||
Communications Equipment | 1.4 | |||
Construction & Engineering | 0.9 | |||
Real Estate Investment Trusts | 0.9 | |||
Money Market Funds Plus Other Assets Less Liabilities | 0.3 | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
ABB Ltd. | 3.2 | |||
Novozymes A/S, Class B | 3.2 | |||
Johnson Controls, Inc. | 3.1 | |||
SGS SA | 3.1 | |||
Intertek Group PLC | 3.1 | |||
Schneider Electric SE | 3.1 | |||
Autodesk, Inc. | 3.0 | |||
ANSYS, Inc. | 3.0 | |||
Vestas Wind Systems A/S | 3.0 | |||
Xylem, Inc. | 3.0 | |||
Total | 30.8 |
* | Excluding money market fund holdings. |
| 6 |
|
PowerShares CleantechTM Portfolio (PZD) (continued)
Growth of a $10,000 Investment Since Inception†
Fund Performance History as of April 30, 2016
1 Year | 3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years Cumulative | Fund Inception† | |||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||
The Cleantech IndexTM (PO)†† | (0.75 | )% | 6.19 | % | 19.75 | % | 0.27 | % | 1.37 | % | 2.15 | % | 22.49 | % | ||||||||||||||||
Fund | ||||||||||||||||||||||||||||||
NAV Return | 0.12 | 6.99 | 22.46 | 1.12 | 5.71 | 2.72 | 29.13 | |||||||||||||||||||||||
Market Price Return | (0.05 | ) | 7.00 | 22.50 | �� | 1.05 | 5.36 | 2.68 | 28.63 |
Fund Inception: October 24, 2006
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.72%, and the net annual operating expense ratio was indicated as 0.67%. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund
at NAV and Market 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 their respective 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 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.
† | Fund and Index returns are based on the inception date of the Fund. |
†† | Price only, and does not reflect dividends paid by the holdings in the Index. |
| 7 |
|
PDP | Manager’s Analysis | |
PowerShares DWA Momentum Portfolio (PDP) |
As an index fund, the PowerShares DWA Momentum Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dorsey Wright® Technical Leaders Index (PO) (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index.
Dorsey Wright & Associates, LLC (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its guidelines and mandated procedures, the Index Provider includes common stocks pursuant to a proprietary selection methodology that is designed to identify companies listed on the U.S. exchanges that demonstrate powerful relative strength characteristics. The Index Provider evaluates companies quarterly and ranks a universe of eligible securities using a proprietary relative strength methodology. Eligible securities must be one of the 1,000 largest constituents of the NASDAQ by market capitalization and have a minimum three-month average daily dollar trading volume of $1 million. The methodology takes into account, among other things, the performance of each of the approximately 1,000 largest companies in the eligible universe as compared to a benchmark index and the relative performance of industry sectors and sub-sectors. The Index Provider identifies approximately 100 of these stocks for inclusion in the Underlying Index. The stocks that the Index Provider includes receive a modified equal weighting. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned (4.29)%. On a net asset value (“NAV”) basis, the Fund returned (4.29)%. During the same time period, the Index returned (4.54)%. During the fiscal year, the Fund fully replicated the components of the Index. The Fund outperformed the return of its Index, despite incurring fees and operating expenses, primarily due to the Index being calculated on a price return basis, which does not reflect any dividend income received from constituent securities, while the Fund’s NAV basis return reflects this income.
During this same time period, the Russell 3000® Growth Index (the “Benchmark Index”) returned 0.32%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 1,810 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a broader-based market benchmark. The Benchmark Index was selected for its recognition in the marketplace, and exposure to growth stocks. The Benchmark Index performance comparison is a useful measure for investors as a broad representation of the U.S. growth equity market.
The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a proprietary stock selection and weighting methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.
Relative to the Benchmark Index, the Fund was overweight in the consumer discretionary sector and underweight in the information
technology sector during the fiscal year ended April 30, 2016. Therefore, a majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to stock selection within the health care and consumer discretionary sectors as well as being underweight in the energy and telecommunication services sectors.
For the fiscal year ended April 30, 2016, the consumer staples sector contributed most significantly to the Fund’s return, followed by the industrials and energy sectors, respectively. The health care sector detracted most significantly from the Fund’s return, followed by the information technology and consumer discretionary sectors, respectively.
Positions that contributed most significantly to the Fund’s return included O’Reilly Automotive, Inc., a consumer discretionary company (portfolio average weight of 2.82%), and Henry Schein, Inc., a health care company (portfolio average weight of 2.34%). Positions that detracted most significantly from the Fund’s return included Jazz Pharmaceuticals PLC, a health care company (no longer held at fiscal year-end), and Anacor Pharmaceuticals, Inc., a health care company (no longer held at fiscal year-end).
Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Consumer Discretionary | 20.4 | |||
Financials | 17.8 | |||
Industrials | 16.4 | |||
Information Technology | 12.8 | |||
Consumer Staples | 11.2 | |||
Health Care | 9.5 | |||
Materials | 7.9 | |||
Utilities | 3.4 | |||
Energy | 0.6 | |||
Money Market Fund Plus Other Assets Less Liabilities | (0.0) | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
Priceline Group, Inc. (The) | 3.0 | |||
O’Reilly Automotive, Inc. | 2.8 | |||
Henry Schein, Inc. | 2.6 | |||
Ball Corp. | 2.6 | |||
MasterCard, Inc., Class A | 2.5 | |||
Domino’s Pizza, Inc. | 2.5 | |||
Church & Dwight Co., Inc. | 2.3 | |||
Medivation, Inc. | 2.2 | |||
Arch Capital Group Ltd. | 2.2 | |||
MarketAxess Holdings, Inc. | 2.2 | |||
Total | 24.9 |
* | Excluding money market fund holdings. |
| 8 |
|
PowerShares DWA Momentum Portfolio (PDP) (continued)
Growth of a $10,000 Investment Since Inception†
Fund Performance History as of April 30, 2016
1 Year | 3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years Cumulative | Fund Inception† | |||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||
Dorsey Wright® Technical Leaders Index (PO)†† | (4.54 | )% | 8.50 | % | 27.73 | % | 8.92 | % | 53.31 | % | 6.09 | % | 71.93 | % | ||||||||||||||||
Russell 3000® Growth Index | 0.32 | 12.16 | 41.10 | 11.09 | 69.18 | 8.13 | 104.70 | |||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||
NAV Return | (4.29 | ) | 8.74 | 28.59 | 9.25 | 55.62 | 6.27 | 74.55 | ||||||||||||||||||||||
Market Price Return | (4.29 | ) | 8.74 | 28.60 | 9.23 | 55.47 | 6.24 | 74.14 |
Fund Inception: March 1, 2007
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.63%. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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 and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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.
† | Fund, Index and Benchmark Index returns are based on the inception date of the Fund. |
†† | Price only, and does not reflect dividends paid by the holdings in the Index. |
| 9 |
|
PSP | Manager’s Analysis | |
PowerShares Global Listed Private Equity Portfolio (PSP) |
As an index fund, the PowerShares Global Listed Private Equity Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. 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 Index (the “Index”). The Fund generally will invest at least 90% of its total assets in securities (including American depositary receipts (“ADRs”) and global depositary receipts (“GDRs”)) that comprise the Index.
Red Rocks Capital LLC (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its guidelines and mandated procedures, the Index Provider includes securities in the Index pursuant to a proprietary selection methodology. The Index is comprised of 40 to 75 securities, ADRs and GDRs of listed private equity companies. To be considered for inclusion in the Index, a security must invest a majority of its assets in, lend capital to, or provide services to, at least five unrelated private companies, or must have a stated intention to do so. The Index Provider identifies private equity companies that will comprise the Index based upon the reputation, management, financial data, historical performance and the need for diversification within the Index. The Index views diversification from four different perspectives: a) stage of investment; b) type of capital; c) sector; and d) geography. Each listed private equity company must have a market capitalization of at least $100 million to qualify for inclusion in the Index. The Index uses float-adjusted, modified market capitalization weightings, with no component having a weight greater than 10%. The combined weight of all Index components that individually equal a 5% or greater weighting of the Index will not exceed 50% of the Index. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned (8.47)%. On a net asset value (“NAV”) basis, the Fund returned (8.09)%. During the same time period, the Index returned (8.24)%. The Fund, on a NAV basis, outperformed compared to the Index due primarily to the Fund’s inability to hold two securities in the same weightings as represented in the Index. The Fund was restricted from owning one of the securities while being restricted in fully replicating the Index weighting of the other due to the investment activities of one or more of the Adviser’s affiliates, including other subsidiaries of the Adviser’s parent company, Invesco Ltd.
For the fiscal year ended April 30, 2016, the capital markets industry contributed most significantly to the Fund’s return, followed by the machinery and health care providers & services industries, respectively. The industrial conglomerates industry detracted most significantly from the Fund’s return, followed by the internet software & services and diversified financial services industries, respectively.
Positions that contributed most significantly to the Fund’s return included Partners Group Holding AG, a capital markets company (portfolio average weight of 5.04%), and Brait SE, a capital markets company (portfolio average weight of 3.39%). Positions that detracted most significantly from the Fund’s return included Fosun International Ltd., an industrial conglomerates company (portfolio average weight of 4.09%), and Leucadia National Corp., a diversified financial services company (portfolio average weight of 3.96%).
Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Capital Markets | 54.6 | |||
Diversified Financial Services | 22.4 | |||
Internet Software & Services | 4.1 | |||
Industrial Conglomerates | 3.7 | |||
Machinery | 2.2 | |||
Health Care Providers & Services | 1.2 | |||
Food Products | 1.0 | |||
Money Market Funds Plus Other Assets Less Liabilities | 10.8 | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
Partners Group Holding AG | 5.1 | |||
Onex Corp. | 5.1 | |||
3i Group PLC | 5.0 | |||
Eurazeo SA | 4.3 | |||
Brait SE | 4.0 | |||
Fosun International Ltd. | 3.8 | |||
Ares Capital Corp. | 3.1 | |||
Leucadia National Corp. | 3.0 | |||
Wendel SA | 3.0 | |||
IAC/InterActiveCorp. | 2.4 | |||
Total | 38.8 |
* | Excluding money market fund holdings. |
| 10 |
|
PowerShares Global Listed Private Equity Portfolio (PSP) (continued)
Growth of a $10,000 Investment Since Inception†
Fund Performance History as of April 30, 2016
1 Year | 3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years Cumulative | Fund Inception† | |||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||
Blended-Red Rocks Global Listed Private Equity Index†† | (8.24 | )% | 5.35 | % | 16.93 | % | 4.87 | % | 26.86 | % | (0.86 | )% | (7.88 | )% | ||||||||||||||||
Red Rocks Global Listed Private Equity Index | (8.24 | ) | 5.35 | 16.93 | 4.87 | 26.86 | N/A | N/A | ||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||
NAV Return | (8.09 | ) | 4.48 | 14.06 | 3.90 | 21.07 | (3.21 | ) | (26.68 | ) | ||||||||||||||||||||
Market Price Return | (8.47 | ) | 4.14 | 12.93 | 3.64 | 19.56 | (3.28 | ) | (27.18 | ) |
Fund Inception: October 24, 2006
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 2.11%, including acquired fund fees and expenses of 1.45%, and the net annual operating expense ratio was indicated as 2.09%. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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.
Blended-Index and Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index and Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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.
† | Fund and Blended-Index returns are based on the inception date of the Fund. |
†† | The data included as the Blended-Index is comprised of the Red Rocks Capital Listed Private Equity Index from October 24, 2006, the Fund’s inception, until September 30, 2009, followed by the performance of the Red Rocks Global Listed Private Equity Index from September 30, 2009 through April 30, 2016. |
| 11 |
|
PGJ | Manager’s Analysis | |
PowerShares Golden Dragon China Portfolio (PGJ) |
As an index fund, the PowerShares Golden Dragon China Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the NASDAQ Golden Dragon China Index (the “Index”). The Fund generally will invest at least 90% of its total assets in equity securities of companies deriving a majority of their revenues from the People’s Republic of China and that comprise the Index.
The NASDAQ OMX Group, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its guidelines and mandated procedures, the Index Provider includes securities in the Index to provide access to the unique economic opportunities taking place in China while still providing investors with the transparency offered with U.S. exchange listed securities. Securities eligible for inclusion in the Index must be issued by a company headquartered or incorporated in the People’s Republic of China, be listed on the NASDAQ, the NYSE or NYSE MKT, have a minimum market capitalization of $100 million and have a minimum three-month average daily dollar trading volume of $250,000. The Index may include common stocks, ordinary shares, American depositary receipts (“ADRs”), shares of beneficial interest, or limited partnership interests and tracking stocks. The Index Provider calculates the Index’s composition using a modified market capitalization-weighting methodology, such that the maximum weight of any security does not exceed 8% of the Index, while at no time permitting more than five securities to reach that 8% cap. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned (8.97)%. On a net asset value (“NAV”) basis, the Fund returned (9.04)%. During the same time period, the Index returned (8.62)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period, which were offset by revenue generated through the Fund’s securities lending program.
During this same time period, the FTSE/Xinhua China 25 Index (the “Benchmark Index”) returned (31.88)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 60 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of another index representative of equity exposure to Chinese companies. The Benchmark Index was selected for its recognition in the marketplace.
The performance of the Fund differed from the Benchmark Index primarily because of substantially different individual company components and sector weightings. Additionally, the Fund invests in Chinese companies, as defined by the Index methodology, listed on U.S. exchanges, whereas the Benchmark Index is composed of Chinese stocks listed on the Hong Kong stock exchange. A comparison to the Benchmark Index is still relevant as the Fund and Benchmark Index both represent exposure to Chinese companies.
Relative to the Benchmark Index, the Fund was most overweight in the information technology sector and most underweight in the energy sector during the fiscal year ended April 30, 2016. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to the Fund’s allocation to the information technology sector.
For the fiscal year ended April 30, 2016, there were no contributing sectors. The consumer discretionary sector detracted most significantly from the Fund’s return, followed by the information technology and telecommunication services sectors, respectively.
Positions that contributed most significantly to the Fund’s return included Ctrip.com International Ltd. ADR, a consumer discretionary company (portfolio average weight of 8.31%), and New Oriental Education & Technology Group, Inc. ADR, a consumer discretionary company (portfolio average weight of 3.6%). Positions that detracted most significantly from the Fund’s return included Vipshop Holdings Ltd. ADR, a consumer discretionary company (portfolio average weight of 6.26%), and JD.com, Inc. Class A ADR, a consumer discretionary company (portfolio average weight of 6.93%).
Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Information Technology | 42.6 | |||
Consumer Discretionary | 37.4 | |||
Telecommunication Services | 7.0 | |||
Health Care | 5.1 | |||
Energy | 2.9 | |||
Financials | 2.6 | |||
Industrials | 2.0 | |||
Utilities | 0.3 | |||
Materials | 0.1 | |||
Money Market Funds Plus Other Assets Less Liabilities | (0.0) | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
Baidu, Inc., Class A ADR | 8.2 | |||
Ctrip.com International Ltd. ADR | 7.8 | |||
NetEase, Inc. ADR | 7.7 | |||
JD.Com, Inc., Class A ADR | 7.3 | |||
China Mobile Ltd. ADR | 6.3 | |||
New Oriental Education & Technology Group, Inc. ADR | 4.6 | |||
Vipshop Holdings Ltd., Class A ADR | 4.5 | |||
China Biologic Products, Inc. | 3.6 | |||
58.com, Inc., Class A ADR | 3.4 | |||
SINA Corp. | 3.4 | |||
Total | 56.8 |
* | Excluding money market fund holdings. |
| 12 |
|
PowerShares Golden Dragon China Portfolio (PGJ) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2016
1 Year | 3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years Cumulative | 10 Years Average Annualized | 10 Years Cumulative | Fund Inception† | |||||||||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||||||||||
NASDAQ Golden Dragon China Index | (8.62 | )% | 17.00 | % | 60.17 | % | 2.62 | % | 13.81 | % | 7.75 | % | 110.86 | % | 8.39 | % | 150.31 | % | ||||||||||||||||||||
FTSE/Xinhua China 25 Index | (31.88 | ) | 0.48 | 1.45 | (2.05 | ) | (9.84 | ) | 5.59 | 72.27 | 8.48 | 152.84 | ||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||
NAV Return | (9.04 | ) | 16.70 | 58.92 | 2.42 | 12.69 | 7.29 | 102.08 | 7.89 | 137.47 | ||||||||||||||||||||||||||||
Market Price Return | (8.97 | ) | 16.79 | 59.30 | 2.48 | 13.05 | 7.26 | 101.61 | 7.86 | 136.68 |
Fund Inception: December 9, 2004
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund
at NAV and Market 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 and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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.
† | Fund, Index and Benchmark Index returns are based on the inception date of the Fund. |
| 13 |
|
PBP | Manager’s Analysis | |
PowerShares S&P 500 BuyWrite Portfolio (PBP) |
As an index fund, the PowerShares S&P 500 BuyWrite Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the CBOE S&P 500 BuyWriteSM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in securities that comprise the Index and will write (sell) call options thereon.
The Chicago Board Options Exchange, Incorporated (the “Index Provider”) compiles, maintains and calculates the Index. The Index measures the total rate of return of an S&P 500® Index covered call strategy. This strategy consists of holding a long portfolio indexed to the S&P 500® Index and selling a succession of covered call options, each with an exercise price at or above the prevailing price level of the S&P 500® Index. The Index provides a benchmark measure of the total return performance of this hypothetical strategy. The Index reinvests dividends paid on the component stocks underlying the S&P 500® Index and the dollar value of option premiums received from covered call options. The Index assumes that the call options are written (sold) on the third Friday of each month and expire in the next calendar month after they are written. The Index assumes that the call options are held until their expiration. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned 0.67%. On a net asset value (“NAV”) basis, the Fund returned 0.90%. During the same time period, the Index returned 1.71%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.
During this same time period, the S&P 500® Index (the “Benchmark Index”) returned 1.21%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 510 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a broad-based market benchmark that does not contain a covered call component. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the U.S. equity market.
The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to fees and operating expenses incurred during the period, offset by the benefit received from selling covered call options.
For the fiscal year ended April 30, 2016, the consumer staples sector contributed most significantly to the Fund’s return, followed
by the consumer discretionary and industrials sectors, respectively. The energy sector detracted most significantly from the Fund’s return, followed by the financials and health care sectors, respectively.
Positions that contributed most significantly to the Fund’s return included Facebook, Inc. Class A, an information technology company (portfolio average weight of 1.23%), and Amazon.com, Inc., a consumer discretionary company (portfolio average weight of 1.19%). Positions that detracted most significantly from the Fund’s return included Apple, Inc., an information technology company (portfolio average weight of 3.64%), and Kinder Morgan, Inc. Class P, an energy company (portfolio average weight of 0.27%).
Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Information Technology | 19.8 | |||
Financials | 16.2 | |||
Health Care | 14.7 | |||
Consumer Discretionary | 13.1 | |||
Consumer Staples | 10.3 | |||
Industrials | 10.2 | |||
Energy | 7.3 | |||
Utilities | 3.4 | |||
Materials | 3.0 | |||
Telecommunication Services | 2.7 | |||
Other Assets Less Liabilities | (0.7) | |||
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
Apple, Inc. | 2.9 | |||
Microsoft Corp. | 2.2 | |||
Exxon Mobil Corp. | 2.1 | |||
Johnson & Johnson | 1.7 | |||
General Electric Co. | 1.6 | |||
Berkshire Hathaway, Inc., Class B | 1.5 | |||
Facebook, Inc., Class A | 1.5 | |||
Amazon.com, Inc. | 1.4 | |||
AT&T, Inc. | 1.4 | |||
JPMorgan Chase & Co. | 1.3 | |||
Total | 17.6 |
| 14 |
|
PowerShares S&P 500 BuyWrite Portfolio (PBP) (continued)
Growth of a $10,000 Investment Since Inception†
Fund Performance History as of April 30, 2016
1 Year | 3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years Cumulative | Fund Inception† | |||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||
CBOE S&P 500 BuyWriteSM Index | 1.71 | % | 5.66 | % | 17.96 | % | 6.14 | % | 34.69 | % | 3.50 | % | 33.31 | % | ||||||||||||||||
S&P 500® Index | 1.21 | 11.26 | 37.71 | 11.02 | 68.63 | 6.52 | 69.62 | |||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||
NAV Return | 0.90 | 4.85 | 15.27 | 5.30 | 29.47 | 2.65 | 24.47 | |||||||||||||||||||||||
Market Price Return | 0.67 | 4.77 | 14.99 | 5.25 | 29.18 | 2.63 | 24.20 |
Fund Inception: December 20, 2007
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the Fund’s expense ratio 0.75% is expressed as a unitary management fee to cover operating expenses and expenses incurred in connection with managing the portfolio. NAV and Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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 and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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.
† | Fund, Index and Benchmark Index returns are based on the inception date of the Fund. |
| 15 |
|
SPHQ | Manager’s Analysis | |
PowerShares S&P 500® Quality Portfolio (SPHQ) |
Effective after the close of markets on March 18, 2016, the Fund’s name changed from PowerShares S&P 500® High Quality Portfolio to PowerShares S&P 500® Quality Portfolio (the “Fund”) and the underlying index changed from the S&P 500® High Quality Rankings Index (the “Previous Index”) to S&P 500® Quality Index (the “Index”). At that time, the Fund also changed its investment objective and principal investment strategy.
As an index fund, the Fund is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Index and, through March 18, 2016, of the Previous Index. The Fund generally will invest at least 90% of its total assets in securities that comprise the Index and, through March 18, 2016, comprised the Previous Index.
In selecting constituent securities for the Index, S&P Dow Jones Indices LLC (the “Index Provider”) first calculates the quality score of each security in the S&P 500® Index based on a composite of the following three factors for each stock: (i) return on equity, calculated as the company’s trailing 12-month earnings per share divided by the company’s latest book value per share; (ii) accruals ratio, computed using the change of the company’s net operating assets over the last year divided by the company’s average net operating assets over the last two years; and (iii) financial leverage ratio, calculated as the company’s latest total debt divided by the company’s book value. The Index Provider then selects the 100 stocks with the highest quality score—that is, stocks of companies that seek to generate higher revenue and cash flow than their counterparts through prudent use of assets and finances, for inclusion in the Index. The Index employs a modified market capitalization-weighted methodology, as the Index Provider weights component securities by multiplying their float-adjusted market capitalization and their quality score. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned 8.43%. On a net asset value (“NAV”) basis, the Fund returned 8.39%. During the same time period, the Blended S&P 500® Quality Index (a composite of the returns of the Previous Index through March 18, 2016, and of the Index for the remainder of the fiscal year, referred to herein as the “Blended-Index”) returned 8.70%. During the fiscal year, the Fund fully replicated the components of the Blended-Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Blended Index primarily due to fees and operating expenses that the Fund incurred during the period.
During this same time period, the S&P 500® Index (the “Benchmark Index”) returned 1.21%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 505 securities. The Fund provided this additional comparative benchmark because of its recognition in the market place and to help investors better understand how the investment results of the Fund compare to the performance of a broad-based U.S. stock market benchmark.
The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an index that selects stocks based upon quality scores as computed by the Index Provider, while the Benchmark Index does not.
Relative to the Benchmark Index, the Fund was most overweight in the industrials sector and most underweight in the information technology sector during the fiscal year ended April 30, 2016. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to stock selection within and the Fund’s allocation to the consumer staples, health care, and energy sectors.
For the fiscal year ended April 30, 2016, the consumer staples sector contributed most significantly to the Fund’s return, followed by the utilities and health care sectors, respectively. There were no detracting sectors.
Positions that contributed most significantly to the Fund’s return included Hormel Foods Corp., a consumer staples company (no longer held at fiscal year-end), and Airgas, Inc., a materials company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included Gap, Inc. (The), a consumer discretionary company (portfolio average weight of 1.09%), and Ralph Lauren Corp., Class A, a consumer discretionary company (no longer held at fiscal year-end).
Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Consumer Discretionary | 20.4 | |||
Industrials | 19.8 | |||
Health Care | 19.3 | |||
Information Technology | 17.1 | |||
Consumer Staples | 16.4 | |||
Materials | 3.9 | |||
Financials | 2.6 | |||
Energy | 0.5 | |||
Other Assets Less Liabilities | 0.0 | |||
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
Johnson & Johnson | 5.4 | |||
Home Depot, Inc. (The) | 4.4 | |||
Procter & Gamble Co. (The) | 4.4 | |||
Gilead Sciences, Inc. | 4.3 | |||
International Business Machines Corp. | 4.0 | |||
MasterCard, Inc., Class A | 3.2 | |||
Visa, Inc., Class A | 3.2 | |||
PepsiCo, Inc. | 3.0 | |||
Boeing Co. (The) | 2.9 | |||
3M Co. | 2.9 | |||
Total | 37.7 |
| 16 |
|
PowerShares S&P 500® Quality Portfolio (SPHQ) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2016
1 Year | 3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years Cumulative | 10 Years Average Annualized | 10 Years Cumulative | Fund Inception†† | |||||||||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||||||||||
Blended-S&P 500® Quality Index† | 8.70 | % | 13.82 | % | 47.44 | % | 13.60 | % | 89.20 | % | 5.03 | % | 63.28 | % | 5.80 | % | 79.81 | % | ||||||||||||||||||||
S&P 500® Quality Index | 1.34 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||
S&P 500® High Quality Rankings Index | 7.79 | 13.50 | 46.20 | 13.41 | 87.61 | N/A | N/A | N/A | N/A | |||||||||||||||||||||||||||||
S&P 500® Index | 1.21 | 11.26 | 37.71 | 11.02 | 68.63 | 6.91 | 95.01 | 7.08 | 103.69 | |||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||
NAV Return | 8.39 | 13.48 | 46.15 | 13.21 | 85.93 | 4.87 | 60.95 | 5.66 | 77.24 | |||||||||||||||||||||||||||||
Market Price Return | 8.43 | 13.48 | 46.14 | 13.21 | 85.92 | 4.86 | 60.76 | 5.61 | 76.43 |
Fund Inception: December 6, 2005
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.38%, and the net annual operating expense ratio was indicated as 0.29%. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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.
Blended-Index, Index, Previous Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index, Index, Previous Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index, Index, Previous Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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 Blended-S&P 500® Quality Index is comprised of the performance of the Value Line Timeliness Select Index, the Fund’s underlying index from Fund inception through the conversion date, June 29, 2010, followed by the performance of the S&P 500® High Quality Rankings Index, the Fund’s underlying index for the period June 29, 2010 through March 18, 2016, followed by the performance of the Index for the period March 18, 2016 through April 30, 2016. |
†† | Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund. |
| 17 |
|
PHO | Manager’s Analysis | |
PowerShares Water Resources Portfolio (PHO) |
As an index fund, the PowerShares Water Resources Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. 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 and American depositary receipts (“ADR”) of companies in the water industry that comprise the Index.
NASDAQ OMX Group, Inc. (or the “Index Provider”) compiles, maintains and calculates the Index. The Index is comprised of U.S. exchange-listed companies that create products designed to conserve and purify water for homes, businesses and industries. Securities eligible for inclusion in the Index include common stocks, ordinary shares, depositary receipts (both American and global), depositary shares or limited partnership interests. Eligible securities must also meet the following criteria: a) have issuers classified by SustainableBusiness.com LLC as participating in the “Green Economy,” an environmental and clean energy sector portion of the NASDAQ OMX Green Economy Global Benchmark Index, which includes 350 securities from 13 different environmental sectors; b) be listed on NASDAQ, NYSE, or NYSE MKT; c) only one security per issuer is permitted; d) the securities must have a minimum worldwide market capitalization of $50 million; and e) the security must have a minimum three-month average daily dollar trading volume of $250,000. The Index Provider evaluates securities annually for eligibility. Each quarter, the Index Provider rebalances the Index using a modified liquidity weighting methodology, such that the maximum weight of any security does not exceed 8% of the Index, while at no time permitting more than five securities to reach that 8% cap. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned (8.06)%. On a net asset value (“NAV”) basis, the Fund returned (8.09)%. During the same time period, the Index returned (7.45)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.
For the fiscal year ended April 30, 2016, the machinery industry contributed most significantly to the Fund’s return, followed by the water utilities and electronic equipment instruments & components industries, respectively. The independent power and renewable electricity producers industry detracted most significantly from the Fund’s return, followed by the semiconductors & semiconductor equipment and building products industries, respectively.
Positions that contributed most significantly to the Fund’s return included Pall Corp., a machinery company (no longer held at
fiscal year-end), and American Water Works Co., Inc., a water utilities company (portfolio average weight of 4.75%). Positions that detracted most significantly from the Fund’s return included TerraForm Power, Inc. Class A, an independent power and renewable electricity producers company (portfolio average weight of 3.18%), and SunEdison, Inc., a semiconductors & semiconductor equipment company (no longer held at fiscal year-end).
Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Machinery | 29.2 | |||
Water Utilities | 17.3 | |||
Chemicals | 9.4 | |||
Independent Power & Renewable Electricity Producers | 8.3 | |||
Life Sciences Tools & Services | 7.7 | |||
Industrial Conglomerates | 7.4 | |||
Construction & Engineering | 6.3 | |||
Electronic Equipment, Instruments & Components | 4.5 | |||
Trading Companies & Distributors | 4.4 | |||
Building Products | 2.9 | |||
Commercial Services & Supplies | 2.5 | |||
Money Market Fund Plus Other Assets Less Liabilities | 0.1 | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
Pentair PLC | 8.6 | |||
American Water Works Co., Inc. | 7.9 | |||
Ecolab, Inc. | 7.9 | |||
Waters Corp. | 7.7 | |||
Roper Technologies, Inc. | 7.4 | |||
Valmont Industries, Inc. | 4.4 | |||
Pattern Energy Group, Inc. | 4.4 | |||
HD Supply Holdings, Inc. | 4.4 | |||
Xylem, Inc. | 4.0 | |||
TerraForm Power, Inc., Class A | 3.9 | |||
Total | 60.6 |
* | Excluding money market fund holdings. |
| 18 |
|
PowerShares Water Resources Portfolio (PHO) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2016
1 Year | 3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years Cumulative | 10 Years Average Annualized | 10 Years Cumulative | Fund Inception†† | |||||||||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||||||||||
Blended-NASDAQ OMX US Water IndexSM† | (7.45 | )% | 2.64 | % | 8.14 | % | 4.04 | % | 21.90 | % | 4.21 | % | 51.06 | % | 5.84 | % | 80.53 | % | ||||||||||||||||||||
NASDAQ OMX-US Water IndexSM | (7.45 | ) | 2.64 | 8.14 | N/A | N/A | N/A | N/A | N/A | N/A | ||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||
NAV Return | (8.09 | ) | 2.01 | 6.16 | 3.28 | 17.49 | 3.00 | 34.41 | 4.65 | 60.45 | ||||||||||||||||||||||||||||
Market Price Return | (8.06 | ) | 2.01 | 6.16 | 3.28 | 17.50 | 2.96 | 33.91 | 4.54 | 58.63 |
Fund Inception: December 6, 2005
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.61%. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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.
Blended-Index and Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index and Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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 data known as the Blended-Index is comprised of the performance of the Palisades Water Index, from Fund inception through the conversion date, March 1, 2012, followed by the performance of the NASDAQ OMX US Water IndexSM starting at the conversion date and through April 30, 2016. |
†† | Fund and Blended-Index returns are based on the inception date of the Fund. |
| 19 |
|
PBW | Manager’s Analysis | |
PowerShares WilderHill Clean Energy Portfolio (PBW) |
As an index fund, the PowerShares WilderHill Clean Energy Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. 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 of companies engaged in the business of the advancement of cleaner energy and conservation that comprise the Index.
WilderHill (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its guidelines and mandated procedures, the Index Provider includes stocks in the Index that it believes will substantially benefit from a societal transition toward the use of cleaner energy and conservation. The Index uses modified equal dollar weighting. No single stock may exceed 4% of the total Index weight at the quarterly rebalancing. For a stock to be included in the selection universe, the Index Provider must identify a company as one that has a significant exposure to clean energy, or contribute to the advancement of clean energy or be important to the development of clean energy. Companies in the Index generally (i) help prevent pollutants such as carbon dioxide, nitrous oxide, sulfur oxide or particulates—and avoid carbon or contaminants that harm oceans, land, air or ecosystems structure, (ii) work to further renewable energy efforts and do so in ecologically and economically sensible ways and (iii) incorporate the precautionary principles into their pollution prevention and clean energy efforts. Similarly, companies in the Index generally will not have their majority interests in oil or coal, which are the highest-carbon fuels. Large companies with interests outside clean energy may be included if they significantly contribute to this sector. Components with a market capitalization less than $200 million are weighted at rebalance to one-half of a percent (0.50%). To be eligible for the Index, a stock must have: a) three-month average market capitalization of at least $50 million; and b) three-month average closing price above $1.00 if not currently in the Index. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned (27.19)%. On a net asset value (“NAV”) basis, the Fund returned (27.19)%. During the same time period, the Index returned (28.59)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to the revenue that the Fund generated through its securities lending program, offset by the fees and operating expenses that the Fund incurred during the period.
During this same time period, the NASDAQ Composite Index (PO) (the “Benchmark Index”) returned (3.36)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 2,590 securities.
The Benchmark Index performance is price only, and does not reflect dividends paid by the holdings in the Benchmark Index. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of broad-based equity market benchmark. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the equity market.
The performance of the Fund differed from the Benchmark Index because the Index employs a proprietary stock selection and weighting methodology whereas the Benchmark Index selects and weights stocks based on market capitalization.
Relative to the Benchmark Index, the Fund was most overweight in the semiconductors & semiconductor equipment industry and most underweight in the biotechnology industry during the fiscal year ended April 30, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to allocation to the independent power and renewable electricity producers industry and the Fund’s allocation to the electrical equipment industry.
For the fiscal year ended April 30, 2016, the electronic equipment instruments & components industry contributed most significantly to the Fund’s return, followed by the electric utilities and aerospace & defense industries, respectively. The independent power and renewable electricity producers industry detracted most significantly from the Fund’s return, followed by the semiconductors & semiconductor equipment and electrical equipment industries, respectively.
Positions that contributed most significantly to the Fund’s return included PowerSecure International, Inc., an electrical equipment company (portfolio average weight of 2.52%), and Universal Display Corp., an electronic equipment, instruments & components company (portfolio average weight of 2.85%). Positions that detracted most significantly from the Fund’s return included SunEdison, Inc., a semiconductors & semiconductor equipment company (portfolio average weight of 1.71%), and Sky Solar Holdings Ltd. ADR, an independent power and renewable electricity producers company (portfolio average weight of 2.24%).
| 20 |
|
PowerShares WilderHill Clean Energy Portfolio (PBW) (continued)
Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Semiconductors & Semiconductor Equipment | 27.0 | |||
Electrical Equipment | 19.4 | |||
Independent Power & Renewable Electricity Producers | 14.0 | |||
Electronic Equipment, Instruments & Components | 6.6 | |||
Construction & Engineering | 5.6 | |||
Oil, Gas & Consumable Fuels | 5.2 | |||
Automobiles | 3.8 | |||
Software | 3.5 | |||
Internet Software & Services | 3.5 | |||
Aerospace & Defense | 3.3 | |||
Electric Utilities | 2.9 | |||
Chemicals | 2.7 | |||
Auto Components | 2.5 | |||
Money Market Fund Plus Other Assets Less Liabilities | 0.0 | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
SolarCity Corp. | 4.7 | |||
Tesla Motors, Inc. | 3.7 | |||
Sunrun, Inc. | 3.6 | |||
TerraForm Power, Inc., Class A | 3.5 | |||
OPOWER, Inc. | 3.5 | |||
Ormat Technologies, Inc. | 3.5 | |||
Hexcel Corp. | 3.3 | |||
Ballard Power Systems, Inc. | 3.3 | |||
Pattern Energy Group, Inc. | 3.3 | |||
China Ming Yang Wind Power Group Ltd. ADR | 3.2 | |||
Total | 35.6 |
* | Excluding money market fund holdings. |
| 21 |
|
PowerShares WilderHill Clean Energy Portfolio (PBW) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2016
1 Year | 3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years Cumulative | 10 Years Average Annualized | 10 Years Cumulative | Fund Inception†† | |||||||||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||||||||||
WilderHill Clean Energy Index | (28.59 | )% | (4.30 | )% | (12.36 | )% | (16.06 | )% | (58.32 | )% | (15.42 | )% | (81.26 | )% | (11.06 | )% | (72.95 | )% | ||||||||||||||||||||
NASDAQ Composite Index (PO)† | (3.36 | ) | 12.78 | 43.46 | 10.69 | 66.18 | 7.47 | 105.61 | 7.83 | 132.00 | ||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||
NAV Return | (27.19 | ) | (2.68 | ) | (7.82 | ) | (14.73 | ) | (54.93 | ) | (14.49 | ) | (79.10 | ) | (10.24 | ) | (70.04 | ) | ||||||||||||||||||||
Market Price Return | (27.19 | ) | (2.68 | ) | (7.82 | ) | (14.70 | ) | (54.85 | ) | (14.50 | ) | (79.11 | ) | (10.23 | ) | (70.02 | ) |
Fund Inception: March 3, 2005
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.72% and the net 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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 and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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.
† | Price only, and does not reflect dividends paid by the holdings in the Benchmark Index. |
†† | Fund, Index and Benchmark Index returns are based on the inception date of the Fund. |
| 22 |
|
PUW | Manager’s Analysis | |
PowerShares WilderHill Progressive Energy Portfolio (PUW) |
As an index fund, the PowerShares WilderHill Progressive Energy Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. 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 of companies engaged principally in the progressive energy business that comprise the Index.
Progressive Energy Index LLC (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its guidelines and mandated procedures, the Index Provider includes companies in the Index pursuant to a proprietary selection methodology. The Index is a modified equal-weighted index composed of companies in transitional energy technologies that improve the use of fossil fuels and nuclear power. The Index Provider includes companies focused on the following areas in the Index: alternative energy; better efficiency; emission reduction; new energy activity; utilities; and energy conversion and storage. To be eligible for the Index, a stock must have: (i) three-month average market capitalization of at least $150 million; (ii) three-month average closing price above $1.00 if not currently in the Index; and (iii) a listing on the NYSE, NYSE MKT or the NASDAQ and, if a foreign company, have its ADRs listed on the NYSE, NYSE MKT or the NASDAQ. Components less than $400 million in market capitalization are set to one-half of a percent (0.5%) weight at the rebalance. No single stock may exceed 5% of the total Index weight at the quarterly rebalancing. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned (20.32)%. On a net asset value (“NAV”) basis, the Fund returned (20.29)%. During the same time period, the Index returned (20.15)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period, partially offset by revenue generated through the Fund’s securities lending program.
During this same time period, the NASDAQ Composite Index (PO) (the “Benchmark Index”) returned (3.36)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 2,590 securities. The Benchmark Index performance is price only, and does not reflect dividends paid by the holdings in the Benchmark Index. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of broad-based equity market benchmark. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the equity market.
The performance of the Fund differed from the Benchmark Index because the Index employs a proprietary stock selection and weighting methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to stock selection within the oil, gas and consumable fuels sub-industry as well as being underweight the software & services and retailing industry.
For the fiscal year ended April 30, 2016, the real estate investment trusts (“REIT”) industry contributed most significantly to the Fund’s return, followed by the industrial conglomerates and energy equipment & services industries, respectively. The oil gas & consumable fuels industry detracted most significantly from the Fund’s return, followed by the chemicals and construction & engineering industries, respectively.
Positions that contributed most significantly to the Fund’s return included NRG Yield, Inc., Class C, an independent power and renewable electricity producers company (portfolio average weight of 1.49%), and Acuity Brands, Inc., an electrical equipment company (portfolio average weight of 2.52%). Positions that detracted most significantly from the Fund’s return included Abengoa SA Sponsored ADR Class B, an independent power and renewable electricity producers company (no longer held at fiscal year-end), and LSB Industries, Inc., a chemicals company (no longer held at fiscal year-end).
| 23 |
|
PowerShares WilderHill Progressive Energy Portfolio (PUW) (continued)
Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Oil, Gas & Consumable Fuels | 23.7 | |||
Electrical Equipment | 15.1 | |||
Machinery | 12.7 | |||
Building Products | 6.8 | |||
Auto Components | 5.8 | |||
Independent Power & Renewable Electricity Producers | 5.5 | |||
Construction & Engineering | 4.9 | |||
Energy Equipment & Services | 3.2 | |||
Automobiles | 2.9 | |||
Food & Staples Retailing | 2.8 | |||
Chemicals | 2.6 | |||
Real Estate Investment Trusts | 2.5 | |||
Electronic Equipment, Instruments & Components | 2.5 | |||
Industrial Conglomerates | 2.3 | |||
Semiconductors & Semiconductor Equipment | 2.3 | |||
Commercial Services & Supplies | 2.2 | |||
Electric Utilities | 2.2 | |||
Money Market Funds Plus Other Assets Less Liabilities | (0.0) | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
Southwestern Energy Co. | 4.5 | |||
Chesapeake Energy Corp. | 4.1 | |||
Range Resources Corp. | 3.5 | |||
General Cable Corp. | 3.2 | |||
McDermott International, Inc. | 3.2 | |||
Green Plains, Inc. | 3.1 | |||
Cosan Ltd., Class A | 3.0 | |||
Sasol Ltd. ADR | 3.0 | |||
Tata Motors Ltd. ADR | 3.0 | |||
NRG Yield, Inc., Class C | 2.9 | |||
Total | 33.5 |
* | Excluding money market fund holdings. |
| 24 |
|
PowerShares WilderHill Progressive Energy Portfolio (PUW) (continued)
Growth of a $10,000 Investment Since Inception†
Fund Performance History as of April 30, 2016
1 Year | 3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years Cumulative | Fund Inception† | |||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||
WilderHill Progressive Energy Index | (20.15 | )% | (5.07 | )% | (14.44 | )% | (4.40 | )% | (20.13 | )% | 0.43 | % | 4.15 | % | ||||||||||||||||
NASDAQ Composite Index (PO)†† | (3.36 | ) | 12.78 | 43.46 | 10.69 | 66.18 | 7.76 | 103.66 | ||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||
NAV Return | (20.29 | ) | (5.37 | ) | (15.27 | ) | (4.97 | ) | (22.52 | ) | (0.27 | ) | (2.54 | ) | ||||||||||||||||
Market Price Return | (20.32 | ) | (5.37 | ) | (15.27 | ) | (5.00 | ) | (22.61 | ) | (0.27 | ) | (2.54 | ) |
Fund Inception: October 24, 2006
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.86%, and the net 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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 and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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.
† | Fund, Index and Benchmark Index returns are based on the inception date of the Fund. |
†† | Price only, and does not reflect dividends paid by the holdings in the Benchmark Index. |
| 25 |
|
Schedule of Investments(a)
PowerShares Aerospace & Defense Portfolio (PPA)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks—100.0% | ||||||||
Aerospace & Defense—77.7% | ||||||||
39,660 | AAR Corp. | $ | 953,426 | |||||
73,562 | Aerojet Rocketdyne Holdings, Inc.(b) | 1,332,944 | ||||||
26,658 | Aerovironment, Inc.(b) | 769,883 | ||||||
8,184 | American Science & Engineering, Inc. | 234,472 | ||||||
146,604 | Boeing Co. (The) | 19,762,219 | ||||||
119,066 | BWX Technologies, Inc. | 3,975,614 | ||||||
30,785 | Cubic Corp. | 1,279,733 | ||||||
50,923 | Curtiss-Wright Corp. | 3,899,683 | ||||||
73,451 | DigitalGlobe, Inc.(b) | 1,627,674 | ||||||
41,949 | Engility Holdings, Inc.(b) | 825,137 | ||||||
33,818 | Esterline Technologies Corp.(b) | 2,321,944 | ||||||
139,973 | General Dynamics Corp. | 19,669,006 | ||||||
76,351 | HEICO Corp. | 4,681,080 | ||||||
106,008 | Hexcel Corp. | 4,798,982 | ||||||
173,584 | Honeywell International, Inc. | 19,835,444 | ||||||
53,934 | Huntington Ingalls Industries, Inc. | 7,808,025 | ||||||
45,487 | KEYW Holding Corp. (The)(b) | 313,406 | ||||||
68,006 | Kratos Defense & Security Solutions, Inc.(b) | 361,112 | ||||||
88,480 | L-3 Communications Holdings, Inc. | 11,637,774 | ||||||
88,031 | Lockheed Martin Corp. | 20,456,644 | ||||||
39,754 | Mercury Systems, Inc.(b) | 835,629 | ||||||
41,920 | Moog, Inc., Class A(b) | 2,048,211 | ||||||
82,590 | Northrop Grumman Corp. | 17,035,013 | ||||||
67,145 | Orbital ATK, Inc. | 5,841,615 | ||||||
136,475 | Raytheon Co. | 17,243,616 | ||||||
125,782 | Rockwell Collins, Inc. | 11,092,715 | ||||||
11,290 | Sparton Corp.(b) | 242,283 | ||||||
61,284 | TASER International, Inc.(b) | 1,119,046 | ||||||
39,341 | Teledyne Technologies, Inc.(b) | 3,656,746 | ||||||
307,078 | Textron, Inc. | 11,877,777 | ||||||
52,186 | TransDigm Group, Inc.(b) | 11,891,624 | ||||||
56,302 | Triumph Group, Inc. | 2,037,006 | ||||||
196,527 | United Technologies Corp. | 20,511,523 | ||||||
12,147 | Vectrus, Inc.(b) | 261,889 | ||||||
|
| |||||||
232,238,895 | ||||||||
|
| |||||||
Communications Equipment—5.4% | ||||||||
18,447 | Comtech Telecommunications Corp. | 446,417 | ||||||
142,275 | Harris Corp. | 11,383,423 | ||||||
55,780 | ViaSat, Inc.(b) | 4,278,326 | ||||||
|
| |||||||
16,108,166 | ||||||||
|
| |||||||
Containers & Packaging—3.9% | ||||||||
161,031 | Ball Corp. | 11,494,393 | ||||||
|
| |||||||
Electronic Equipment, Instruments & Components—2.0% | ||||||||
157,005 | FLIR Systems, Inc. | 4,743,121 | ||||||
22,587 | OSI Systems, Inc.(b) | 1,149,452 | �� | |||||
|
| |||||||
5,892,573 | ||||||||
|
| |||||||
IT Services—6.8% | ||||||||
169,821 | Booz Allen Hamilton Holding Corp. | 4,681,965 | ||||||
27,681 | CACI International, Inc., Class A(b) | 2,661,528 | ||||||
185,163 | CSRA, Inc. | 4,806,832 | ||||||
82,250 | Leidos Holdings, Inc. | 4,080,423 | ||||||
43,014 | ManTech International Corp., Class A | 1,453,873 | ||||||
51,893 | Science Applications International Corp. | 2,754,999 | ||||||
|
| |||||||
20,439,620 | ||||||||
|
|
Number of Shares | Value | |||||||
Common Stocks (continued) | ||||||||
Machinery—2.7% | ||||||||
83,446 | Oshkosh Corp. | $ | 4,076,337 | |||||
70,668 | Woodward, Inc. | 3,830,912 | ||||||
|
| |||||||
7,907,249 | ||||||||
|
| |||||||
Software—1.1% | ||||||||
189,408 | FireEye, Inc.(b) | 3,286,229 | ||||||
|
| |||||||
Trading Companies & Distributors—0.4% | ||||||||
30,840 | Kaman Corp. | 1,298,056 | ||||||
|
| |||||||
Total Common Stocks (Cost $279,891,740) | 298,665,181 | |||||||
|
| |||||||
Money Market Fund—0.0% | ||||||||
101,580 | Invesco Premier Portfolio—Institutional Class, 0.39%(c) (Cost $101,580) | 101,580 | ||||||
|
| |||||||
Total Investments (Cost $279,993,320)—100.0% | 298,766,761 | |||||||
Other assets less liabilities—(0.0)% | (31,975 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 298,734,786 | ||||||
|
|
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 26 |
|
Schedule of Investments(a)
PowerShares CleantechTM Portfolio (PZD)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—99.7% | ||||||||
Aerospace & Defense—2.7% | ||||||||
42,262 | Hexcel Corp. | $ | 1,913,201 | |||||
|
| |||||||
Auto Components—6.0% | ||||||||
56,304 | BorgWarner, Inc. | 2,022,440 | ||||||
54,309 | Johnson Controls, Inc. | 2,248,392 | ||||||
|
| |||||||
4,270,832 | ||||||||
|
| |||||||
Building Products—2.6% | ||||||||
69,967 | Kingspan Group PLC (Ireland) | 1,843,143 | ||||||
|
| |||||||
Chemicals—6.6% | ||||||||
764 | Gurit Holding AG (Switzerland) | 483,428 | ||||||
47,002 | Novozymes A/S, Class B (Denmark) | 2,253,070 | ||||||
39,745 | Umicore SA (Belgium) | 1,981,341 | ||||||
|
| |||||||
4,717,839 | ||||||||
|
| |||||||
Commercial Services & Supplies—2.0% | ||||||||
61,708 | CECO Environmental Corp. | 407,273 | ||||||
89,707 | Tomra Systems ASA (Norway) | 1,041,634 | ||||||
|
| |||||||
1,448,907 | ||||||||
|
| |||||||
Communications Equipment—1.4% | ||||||||
34,409 | CalAmp Corp.(b) | 515,103 | ||||||
169,353 | Telit Communications PLC (United Kingdom) | 488,108 | ||||||
|
| |||||||
1,003,211 | ||||||||
|
| |||||||
Construction & Engineering—0.9% | ||||||||
31,859 | Aegion Corp.(b) | 676,367 | ||||||
|
| |||||||
Electrical Equipment—19.2% | ||||||||
107,327 | ABB Ltd. (Switzerland) | 2,270,831 | ||||||
23,124 | EnerSys | 1,349,748 | ||||||
98,934 | Gamesa Corp. Tecnologica SA (Spain) | 1,948,434 | ||||||
27,525 | PowerSecure International, Inc.(b) | 515,268 | ||||||
23,051 | Saft Groupe SA (France) | 716,535 | ||||||
33,525 | Schneider Electric SE (France) | 2,182,533 | ||||||
52,993 | Sensata Technologies Holding NV(b) | 1,996,246 | ||||||
56,646 | SGL Carbon SE (Germany)(b)(c) | 662,744 | ||||||
29,645 | Vestas Wind Systems A/S (Denmark) | 2,121,313 | ||||||
|
| |||||||
13,763,652 | ||||||||
|
| |||||||
Electronic Equipment, Instruments & Components—7.5% | ||||||||
11,061 | Badger Meter, Inc. | 788,981 | ||||||
24,565 | Horiba Ltd. (Japan) | 961,983 | ||||||
22,509 | Itron, Inc.(b) | 925,570 | ||||||
535,212 | Opus Group AB (Sweden) | 289,540 | ||||||
111,294 | Pure Technologies Ltd. (Canada)(c) | 432,702 | ||||||
81,660 | Trimble Navigation Ltd.(b) | 1,955,757 | ||||||
|
| |||||||
5,354,533 | ||||||||
|
| |||||||
Independent Power & Renewable Electricity Producers—3.2% | ||||||||
9,017,530 | Energy Development Corp. (Philippines) | 1,132,781 | ||||||
26,043 | Ormat Technologies, Inc. | 1,130,266 | ||||||
|
| |||||||
2,263,047 | ||||||||
|
| |||||||
Industrial Conglomerates—6.6% | ||||||||
38,038 | Raven Industries, Inc. | 612,031 | ||||||
11,494 | Roper Technologies, Inc. | 2,023,979 | ||||||
20,028 | Siemens AG (Germany) | 2,090,207 | ||||||
|
| |||||||
4,726,217 | ||||||||
|
|
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Life Sciences Tools & Services—2.8% | ||||||||
5,463 | Eurofins Scientific SE (Luxembourg) | $ | 2,027,595 | |||||
|
| |||||||
Machinery—11.5% | ||||||||
22,462 | CLARCOR, Inc. | 1,320,092 | ||||||
58,319 | Donaldson Co., Inc. | 1,905,865 | ||||||
11,609 | Kadant, Inc. | 549,686 | ||||||
9,330 | Lindsay Corp.(c) | 713,372 | ||||||
29,332 | Woodward, Inc. | 1,590,087 | ||||||
50,609 | Xylem, Inc. | 2,114,444 | ||||||
|
| |||||||
8,193,546 | ||||||||
|
| |||||||
Professional Services—7.9% | ||||||||
46,660 | Intertek Group PLC (United Kingdom) | 2,226,234 | ||||||
23,216 | Mistras Group, Inc.(b) | 565,774 | ||||||
49,913 | Ricardo PLC (United Kingdom) | 593,715 | ||||||
1,019 | SGS SA (Switzerland) | 2,244,245 | ||||||
|
| |||||||
5,629,968 | ||||||||
|
| |||||||
Real Estate Investment Trusts—0.9% | ||||||||
32,226 | Hannon Armstrong Sustainable Infrastructure Capital, Inc. REIT | 625,184 | ||||||
|
| |||||||
Semiconductors & Semiconductor Equipment—9.8% | ||||||||
27,665 | Advanced Energy Industries, Inc.(b) | 894,963 | ||||||
44,419 | Cree, Inc.(b) | 1,088,710 | ||||||
859,000 | Lextar Electronics Corp. (Taiwan) | 415,478 | ||||||
120,075 | Meyer Burger Technology AG (Switzerland)(b)(c) | 551,205 | ||||||
19,149 | Power Integrations, Inc. | 923,939 | ||||||
16,302 | SMA Solar Technology AG (Germany)(b)(c) | 863,556 | ||||||
31,878 | SolarEdge Technologies, Inc.(b) | 854,012 | ||||||
69,595 | SunPower Corp.(b)(c) | 1,401,643 | ||||||
|
| |||||||
6,993,506 | ||||||||
|
| |||||||
Software—8.1% | ||||||||
23,746 | ANSYS, Inc.(b) | 2,155,424 | ||||||
36,107 | Autodesk, Inc.(b) | 2,159,921 | ||||||
23,819 | Fleetmatics Group PLC(b) | 863,439 | ||||||
44,149 | Silver Spring Networks, Inc.(b) | 620,293 | ||||||
|
| |||||||
5,799,077 | ||||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $57,477,869) | 71,249,825 | |||||||
|
| |||||||
Money Market Fund—0.0% | ||||||||
5,287 | Invesco Premier Portfolio—Institutional Class, 0.39%(d) (Cost $5,287) | 5,287 | ||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $57,483,156)—99.7% | 71,255,112 | |||||||
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 27 |
|
PowerShares CleantechTM Portfolio (PZD) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—4.4% | ||||||||
3,145,606 | Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(d)(e) (Cost $3,145,606) | $ | 3,145,606 | |||||
|
| |||||||
Total Investments (Cost $60,628,762)—104.1% | 74,400,718 | |||||||
Other assets less liabilities—(4.1)% | (2,934,843 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 71,465,875 | ||||||
|
|
Investment Abbreviations:
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | Non-income producing security. |
(c) | All or a portion of this security was out on loan at April 30, 2016. |
(d) | The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
(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 2J. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 28 |
|
Schedule of Investments(a)
PowerShares DWA Momentum Portfolio (PDP)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.0% | ||||||||
Consumer Discretionary—20.4% | ||||||||
16,621 | AutoZone, Inc.(b) | $ | 12,718,888 | |||||
89,177 | Carter’s, Inc. | 9,512,511 | ||||||
226,409 | CBS Corp., Class B | 12,658,527 | ||||||
37,470 | Charter Communications, Inc., Class A(b) | 7,952,633 | ||||||
66,046 | Cracker Barrel Old Country Store, Inc. | 9,669,795 | ||||||
211,726 | Dollar Tree, Inc.(b) | 16,876,679 | ||||||
299,493 | Domino’s Pizza, Inc. | 36,202,714 | ||||||
139,259 | Foot Locker, Inc. | 8,556,073 | ||||||
58,932 | Home Depot, Inc. (The) | 7,890,405 | ||||||
151,981 | O’Reilly Automotive, Inc.(b) | 39,922,369 | ||||||
41,130 | Panera Bread Co., Class A(b) | 8,821,974 | ||||||
84,252 | Polaris Industries, Inc. | 8,246,586 | ||||||
31,658 | Priceline Group, Inc. (The)(b) | 42,537,588 | ||||||
136,983 | Six Flags Entertainment Corp. | 8,225,829 | ||||||
341,051 | Skechers U.S.A., Inc., Class A(b) | 11,271,735 | ||||||
182,746 | Texas Roadhouse, Inc. | 7,441,417 | ||||||
114,172 | TJX Cos., Inc. (The) | 8,656,521 | ||||||
215,342 | Tractor Supply Co. | 20,384,274 | ||||||
94,591 | Visteon Corp. | 7,536,065 | ||||||
74,996 | Walt Disney Co. (The) | 7,744,087 | ||||||
|
| |||||||
292,826,670 | ||||||||
|
| |||||||
Consumer Staples—11.2% | ||||||||
412,081 | Altria Group, Inc. | 25,841,600 | ||||||
127,891 | Brown-Forman Corp., Class B | 12,318,461 | ||||||
362,243 | Church & Dwight Co., Inc. | 33,579,926 | ||||||
81,365 | Constellation Brands, Inc., Class A | 12,697,822 | ||||||
48,698 | Costco Wholesale Corp. | 7,213,635 | ||||||
79,832 | Estee Lauder Cos., Inc. (The), Class A | 7,653,494 | ||||||
488,202 | Hormel Foods Corp. | 18,820,187 | ||||||
104,291 | JM Smucker Co. (The) | 13,242,871 | ||||||
130,499 | Monster Beverage Corp.(b) | 18,820,566 | ||||||
384,262 | Pilgrim’s Pride Corp.(b) | 10,340,490 | ||||||
|
| |||||||
160,529,052 | ||||||||
|
| |||||||
Energy—0.6% | ||||||||
95,080 | Diamondback Energy, Inc.(b) | 8,232,026 | ||||||
|
| |||||||
Financials—17.8% | ||||||||
110,549 | American Financial Group, Inc. | 7,640,041 | ||||||
454,414 | Arch Capital Group Ltd. (Bermuda)(b) | 32,031,643 | ||||||
88,162 | Chubb Ltd. | 10,390,773 | ||||||
487,377 | CNO Financial Group, Inc. | 8,953,116 | ||||||
87,057 | Crown Castle International Corp. REIT | 7,563,512 | ||||||
567,104 | CubeSmart REIT | 16,791,950 | ||||||
23,999 | Equinix, Inc. REIT | 7,928,070 | ||||||
120,364 | Equity LifeStyle Properties, Inc. REIT | 8,243,730 | ||||||
158,817 | Extra Space Storage, Inc. REIT | 13,491,504 | ||||||
11,275 | Markel Corp.(b) | 10,137,465 | ||||||
251,534 | MarketAxess Holdings, Inc. | 30,878,314 | ||||||
74,329 | Mid-America Apartment Communities, Inc. REIT | 7,114,029 | ||||||
147,760 | Realty Income Corp. REIT | 8,747,392 | ||||||
142,390 | RenaissanceRe Holdings Ltd. (Bermuda) | 15,792,475 | ||||||
228,221 | RLI Corp. | 14,190,782 | ||||||
55,533 | Signature Bank(b) | 7,654,113 | ||||||
523,881 | W.R. Berkley Corp. | 29,337,336 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
249,121 | Western Alliance Bancorp(b) | $ | 9,112,846 | |||||
12,697 | White Mountains Insurance Group Ltd. | 10,538,510 | ||||||
|
| |||||||
256,537,601 | ||||||||
|
| |||||||
Health Care—9.5% | ||||||||
122,500 | ABIOMED, Inc.(b) | 11,899,650 | ||||||
56,968 | Becton, Dickinson and Co. | 9,186,660 | ||||||
225,405 | Henry Schein, Inc.(b) | 38,025,823 | ||||||
557,330 | Medivation, Inc.(b) | 32,213,674 | ||||||
34,373 | Mettler-Toledo International, Inc.(b) | 12,303,815 | ||||||
58,185 | Waters Corp.(b) | 7,573,360 | ||||||
349,045 | West Pharmaceutical Services, Inc. | 24,852,004 | ||||||
|
| |||||||
136,054,986 | ||||||||
|
| |||||||
Industrials—16.4% | ||||||||
123,999 | A.O. Smith Corp. | 9,575,203 | ||||||
298,078 | Alaska Air Group, Inc. | 20,993,633 | ||||||
212,715 | Copart, Inc.(b) | 9,112,711 | ||||||
164,741 | Danaher Corp. | 15,938,692 | ||||||
161,515 | Delta Air Lines, Inc. | 6,730,330 | ||||||
122,857 | Deluxe Corp. | 7,712,962 | ||||||
70,949 | Equifax, Inc. | 8,531,617 | ||||||
54,649 | Huntington Ingalls Industries, Inc. | 7,911,536 | ||||||
127,633 | IDEX Corp. | 10,453,143 | ||||||
106,896 | Lockheed Martin Corp. | 24,840,492 | ||||||
76,230 | Northrop Grumman Corp. | 15,723,200 | ||||||
162,806 | Old Dominion Freight Line, Inc.(b) | 10,753,336 | ||||||
1,022,668 | Rollins, Inc. | 27,479,089 | ||||||
163,218 | Roper Technologies, Inc. | 28,741,058 | ||||||
61,790 | Snap-on, Inc. | 9,841,911 | ||||||
87,740 | Toro Co. (The) | 7,585,123 | ||||||
61,257 | TransDigm Group, Inc.(b) | 13,958,633 | ||||||
|
| |||||||
235,882,669 | ||||||||
|
| |||||||
Information Technology—12.8% | ||||||||
348,343 | Amphenol Corp., Class A | 19,447,990 | ||||||
343,835 | Cadence Design Systems, Inc.(b) | 7,973,534 | ||||||
125,184 | Electronic Arts, Inc.(b) | 7,742,630 | ||||||
74,272 | Facebook, Inc., Class A(b) | 8,732,902 | ||||||
73,622 | Fair Isaac Corp. | 7,856,204 | ||||||
185,997 | Fiserv, Inc.(b) | 18,175,627 | ||||||
147,623 | Gartner, Inc.(b) | 12,868,297 | ||||||
89,302 | IPG Photonics Corp.(b) | 7,739,804 | ||||||
97,237 | Jack Henry & Associates, Inc. | 7,879,114 | ||||||
375,781 | MasterCard, Inc., Class A | 36,446,999 | ||||||
285,511 | Skyworks Solutions, Inc. | 19,077,845 | ||||||
165,618 | Syntel, Inc.(b) | 7,043,733 | ||||||
79,768 | Ultimate Software Group, Inc. (The)(b) | 15,681,591 | ||||||
102,379 | Visa, Inc., Class A | 7,907,754 | ||||||
|
| |||||||
184,574,024 | ||||||||
|
| |||||||
Materials—7.9% | ||||||||
55,306 | Air Products & Chemicals, Inc. | 8,068,592 | ||||||
133,839 | AptarGroup, Inc. | 10,171,764 | ||||||
514,806 | Ball Corp. | 36,746,852 | ||||||
107,692 | Ecolab, Inc. | 12,382,426 | ||||||
84,553 | International Flavors & Fragrances, Inc. | 10,101,547 | ||||||
177,934 | RPM International, Inc. | 8,991,005 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 29 |
|
PowerShares DWA Momentum Portfolio (PDP) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Materials (continued) | ||||||||
96,582 | Sherwin-Williams Co. (The) | $ | 27,748,975 | |||||
|
| |||||||
114,211,161 | ||||||||
|
| |||||||
Utilities—3.4% | ||||||||
262,248 | Aqua America, Inc. | 8,302,772 | ||||||
107,138 | Atmos Energy Corp. | 7,772,862 | ||||||
211,040 | CMS Energy Corp. | 8,585,107 | ||||||
69,713 | NextEra Energy, Inc. | 8,196,855 | ||||||
407,113 | UGI Corp. | 16,382,227 | ||||||
|
| |||||||
49,239,823 | ||||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $1,320,375,623) | 1,438,088,012 | |||||||
|
| |||||||
Money Market Fund—0.1% | ||||||||
895,085 | Invesco Premier Portfolio—Institutional Class, 0.39%(c) (Cost $895,085) | 895,085 | ||||||
|
| |||||||
Total Investments (Cost $1,321,270,708)—100.1% | 1,438,983,097 | |||||||
Other assets less liabilities—(0.1)% | (960,644 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 1,438,022,453 | ||||||
|
|
Investment Abbreviations:
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 30 |
|
Schedule of Investments(a)
PowerShares Global Listed Private Equity Portfolio (PSP)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—89.2% | ||||||||
Capital Markets—54.6% | ||||||||
2,337,534 | 3i Group PLC (United Kingdom) | $ | 16,217,276 | |||||
149,746 | Alaris Royalty Corp. (Canada)(b) | 3,587,640 | ||||||
499,747 | Allied Minds PLC (United Kingdom)(c) | 2,812,651 | ||||||
190,614 | Altamir (France) | 2,379,684 | ||||||
474,416 | American Capital Ltd.(c) | 7,495,773 | ||||||
458,030 | Apollo Global Management LLC, Class A | 7,745,287 | ||||||
576,706 | Apollo Investment Corp. | 3,356,429 | ||||||
669,139 | Ares Capital Corp. | 10,164,221 | ||||||
95,747 | AURELIUS SE & Co. KGaA (Germany) | 5,726,642 | ||||||
204,521 | BlackRock Capital Investment Corp.(b) | 1,720,022 | ||||||
1,169,091 | Brait SE (South Africa)(c) | 13,122,311 | ||||||
268,937 | Bure Equity AB (Sweden) | 2,346,614 | ||||||
335,406 | Carlyle Group LP (The)(b) | 5,614,696 | ||||||
72,358 | Deutsche Beteiligungs AG (Germany) | 2,139,423 | ||||||
431,697 | Fifth Street Finance Corp. | 2,339,798 | ||||||
611,491 | FS Investment Corp.(b) | 5,692,981 | ||||||
89,889 | Gimv NV (Belgium) | 4,993,284 | ||||||
88,594 | Goldman Sachs BDC, Inc. | 1,740,872 | ||||||
139,081 | Golub Capital BDC, Inc.(b) | 2,440,871 | ||||||
622,998 | GP Investments Ltd., Class A BDR (Brazil)(c) | 1,388,332 | ||||||
275,925 | Hercules Capital, Inc. | 3,385,600 | ||||||
828,403 | Intermediate Capital Group PLC (United Kingdom) | 7,451,064 | ||||||
1,828,435 | IP Group PLC (United Kingdom)(c) | 4,604,301 | ||||||
202,421 | JAFCO Co. Ltd. (Japan) | 5,883,726 | ||||||
127,617 | Main Street Capital Corp.(b) | 3,984,203 | ||||||
163,302 | Medley Capital Corp.(b) | 1,110,454 | ||||||
164,726 | New Mountain Finance Corp. | 2,062,369 | ||||||
40,599 | Partners Group Holding AG (Switzerland)(b) | 16,730,939 | ||||||
234,579 | PennantPark Investment Corp. | 1,545,876 | ||||||
302,445 | Princess Private Equity Holding Ltd. (Guernsey) | 2,538,284 | ||||||
784,489 | Prospect Capital Corp.(b) | 5,867,978 | ||||||
883,978 | Ratos AB, Class B (Sweden) | 5,176,634 | ||||||
82,738 | Safeguard Scientifics, Inc.(c) | 1,141,784 | ||||||
119,156 | Solar Capital Ltd. | 2,100,720 | ||||||
131,444 | TCP Capital Corp. | 1,942,742 | ||||||
203,433 | TICC Capital Corp.(b) | 1,053,783 | ||||||
147,450 | TPG Specialty Lending, Inc. | 2,422,603 | ||||||
88,819 | Triangle Capital Corp.(b) | 1,887,404 | ||||||
8,110,573 | Zeder Investments Ltd. (South Africa) | 3,957,842 | ||||||
|
| |||||||
177,873,113 | ||||||||
|
| |||||||
Diversified Financial Services—22.4% | ||||||||
56,996 | Ackermans & van Haaren NV (Belgium) | 7,422,374 | ||||||
1,411,543 | Better Capital PCC Ltd. (United Kingdom) | 1,700,741 | ||||||
1,145,697 | China Merchants China Direct Investments Ltd. (China) | 1,822,552 | ||||||
217,585 | Compass Diversified Holdings(b) | 3,498,767 | ||||||
114,535 | Electra Private Equity PLC (United Kingdom) | 5,944,532 | ||||||
198,231 | Eurazeo SA (France) | 13,963,191 | ||||||
146,192 | HgCapital Trust PLC (United Kingdom) | 2,505,635 | ||||||
588,009 | Leucadia National Corp. | 9,807,990 | ||||||
266,855 | Onex Corp. (Canada) | 16,580,971 | ||||||
83,818 | Wendel SA (France) | 9,686,491 | ||||||
|
| |||||||
72,933,244 | ||||||||
|
|
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Food Products—1.0% | ||||||||
53,800 | Schouw & Co. (Denmark) | $ | 3,146,054 | |||||
|
| |||||||
Health Care Providers & Services—1.2% | ||||||||
156,058 | Lifco AB, Class B (Sweden) | 4,046,153 | ||||||
|
| |||||||
Industrial Conglomerates—3.7% | ||||||||
8,799,766 | Fosun International Ltd. (China) | 12,228,830 | ||||||
|
| |||||||
Internet Software & Services—4.1% | ||||||||
171,233 | IAC/InterActiveCorp. | 7,934,937 | ||||||
228,859 | Rocket Internet SE (Germany)(b)(c)(d) | 5,504,594 | ||||||
|
| |||||||
13,439,531 | ||||||||
|
| |||||||
Machinery—2.2% | ||||||||
1,320,863 | Melrose Industries PLC (United Kingdom) | 7,223,107 | ||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $315,975,424) | 290,890,032 | |||||||
|
| |||||||
Money Market Funds—10.2% | ||||||||
720,000 | Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(e)(f) | 720,000 | ||||||
32,406,676 | Invesco Premier Portfolio—Institutional Class, 0.39%(e) | 32,406,676 | ||||||
|
| |||||||
Total Money Market Funds (Cost 33,126,676) | 33,126,676 | |||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $349,102,100)—99.4% | 324,016,708 | |||||||
|
| |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—11.6% | ||||||||
37,861,974 | Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(e)(g) (Cost $37,861,974) | 37,861,974 | ||||||
|
| |||||||
Total Investments (Cost $386,964,074)—111.0% | 361,878,682 | |||||||
Other assets less liabilities—(11.0)% | (35,954,153 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 325,924,529 | ||||||
|
|
Investment Abbreviations:
BDR—Brazilian Depositary Receipt
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | All or a portion of this security was out on loan at April 30, 2016. |
(c) | Non-income producing security. |
(d) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 31 |
|
PowerShares Global Listed Private Equity Portfolio (PSP) (continued)
April 30, 2016
resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at April 30, 2016 was $5,504,594, which represented 1.69% of the Fund’s Net Assets. |
(e) | The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
(f) | All or a portion of the value was pledged as collateral for swap agreements. See Note 2I and Note 6. |
(g) | 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. |
This Fund has holdings greater than 10% of net assets in the following country:
United Kingdom | 14.9 | % |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 32 |
|
Schedule of Investments(a)
PowerShares Golden Dragon China Portfolio (PGJ)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.0% | ||||||||
Consumer Discretionary—37.4% | ||||||||
52,979 | 500.com Ltd., Class A ADR (China)(b)(c) | $ | 995,475 | |||||
44,445 | China Distance Education Holdings Ltd. ADR (China) | 600,452 | ||||||
58,825 | China Lodging Group Ltd. ADR (China) | 2,121,230 | ||||||
292,489 | Ctrip.com International Ltd. ADR (China)(c) | 12,755,445 | ||||||
104,694 | E-Commerce China Dangdang, Inc., Class A ADR (China)(b)(c) | 747,515 | ||||||
465,525 | JD.Com, Inc., Class A ADR (China)(c) | 11,898,819 | ||||||
159,759 | Jumei International Holding Ltd., Class A ADR (China)(c) | 1,011,274 | ||||||
89,170 | Kandi Technologies Group, Inc. (China)(b)(c) | 641,132 | ||||||
192,237 | New Oriental Education & Technology Group, Inc. ADR (China) | 7,528,001 | ||||||
197,653 | Nord Anglia Education, Inc. (Hong Kong)(b)(c) | 4,196,173 | ||||||
124,324 | Qunar Cayman Islands Ltd., Class B ADR (China)(b)(c) | 5,073,662 | ||||||
84,060 | TAL Education Group, Class A ADR (China)(c) | 4,863,712 | ||||||
54,120 | Tarena International, Inc., Class A ADR (China) | 599,650 | ||||||
59,639 | Tuniu Corp., Class A ADR (China)(b)(c) | 633,963 | ||||||
538,643 | Vipshop Holdings Ltd., Class A ADR (China)(c) | 7,347,091 | ||||||
|
| |||||||
61,013,594 | ||||||||
|
| |||||||
Energy—2.9% | ||||||||
19,951 | China Petroleum & Chemical Corp., H-Shares ADR (China) | 1,411,932 | ||||||
17,995 | CNOOC Ltd. ADR (China) | 2,221,123 | ||||||
15,950 | PetroChina Co. Ltd., H-Shares ADR (China)(b) | 1,165,307 | ||||||
26,179 | Sino Clean Energy, Inc. (China)(c) | 0 | ||||||
|
| |||||||
4,798,362 | ||||||||
|
| |||||||
Financials—2.6% | ||||||||
52,339 | China Life Insurance Co. Ltd., H-Shares ADR (China) | 602,422 | ||||||
68,689 | CNinsure, Inc. ADR (China)(c) | 536,461 | ||||||
159,204 | E-House China Holdings Ltd. ADR (China) | 1,052,338 | ||||||
75,222 | Nam Tai Property, Inc. (China) | 458,854 | ||||||
45,617 | Noah Holdings Ltd. ADR (China)(b)(c) | 1,121,266 | ||||||
86,120 | Xinyuan Real Estate Co. Ltd. ADR (China) | 425,433 | ||||||
|
| |||||||
4,196,774 | ||||||||
|
| |||||||
Health Care—5.1% | ||||||||
50,487 | China Biologic Products, Inc. (China)(c) | 5,906,979 | ||||||
85,648 | iKang Healthcare Group, Inc., Class A ADR (China)(c) | 1,839,719 | ||||||
105,964 | Sinovac Biotech Ltd. (China)(c) | 669,692 | ||||||
|
| |||||||
8,416,390 | ||||||||
|
| |||||||
Industrials—2.0% | ||||||||
47,202 | 51job, Inc. ADR (China)(b)(c) | 1,406,620 | ||||||
72,521 | China Yuchai International Ltd. (Singapore) | 743,340 | ||||||
50,041 | eHi Car Services Ltd., Class A ADR (China)(b)(c) | 542,444 | ||||||
37,219 | Zhaopin Ltd., Class A ADR (China)(b)(c) | 574,289 | ||||||
|
| |||||||
3,266,693 | ||||||||
|
| |||||||
Information Technology—42.6% | ||||||||
104,163 | 21Vianet Group, Inc., Class A ADR (China)(c) | 2,101,489 | ||||||
101,759 | 58.com, Inc., Class A ADR (China)(b)(c) | 5,561,129 | ||||||
86,087 | Autohome, Inc., Class A ADR (China)(b)(c) | 2,544,732 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Information Technology (continued) | ||||||||
69,015 | Baidu, Inc., Class A ADR (China)(c) | $ | 13,409,614 | |||||
51,773 | Bitauto Holdings Ltd. ADR (China)(c) | 1,292,254 | ||||||
106,259 | Canadian Solar, Inc. (Canada)(b)(c) | 1,903,099 | ||||||
34,954 | Changyou.com Ltd., Class A ADR (China)(c) | 703,624 | ||||||
64,622 | Cheetah Mobile, Inc., Class A ADR (China)(b)(c) | 965,453 | ||||||
39,670 | China Finance Online Co. Ltd. ADR (China)(c) | 222,945 | ||||||
32,828 | ChinaCache International Holdings Ltd. ADR (China)(c) | 271,488 | ||||||
13,611 | Daqo New Energy Corp. ADR (China)(c) | 353,205 | ||||||
112,018 | Hollysys Automation Technologies Ltd. (China)(c) | 2,147,385 | ||||||
76,490 | JA Solar Holdings Co. Ltd. ADR (China)(b)(c) | 663,168 | ||||||
42,664 | JinkoSolar Holding Co. Ltd. ADR (China)(b)(c) | 950,127 | ||||||
66,841 | KongZhong Corp. ADR (China)(c) | 485,266 | ||||||
88,045 | Momo, Inc., Class A ADR (China)(b)(c) | 1,447,460 | ||||||
88,914 | NetEase, Inc. ADR (China) | 12,510,200 | ||||||
159,323 | NQ Mobile, Inc., Class A ADR (China)(b)(c) | 812,547 | ||||||
58,528 | Phoenix New Media Ltd., Class A ADR (China)(c) | 234,697 | ||||||
154,969 | ReneSola Ltd. ADR (China)(b)(c) | 213,857 | ||||||
137,738 | Renren, Inc., Class A ADR (China)(c) | 433,875 | ||||||
110,750 | SINA Corp. (China)(c) | 5,547,468 | ||||||
73,414 | Sohu.com, Inc. (China)(c) | 3,298,491 | ||||||
553,599 | SouFun Holdings Ltd., Class A ADR (China)(b)(c) | 3,149,978 | ||||||
162,751 | Trina Solar Ltd. ADR (China)(c) | 1,586,822 | ||||||
89,714 | Weibo Corp., Class A ADR (China)(b)(c) | 2,195,302 | ||||||
71,829 | YY, Inc., Class A ADR (China)(c) | 4,512,298 | ||||||
|
| |||||||
69,517,973 | ||||||||
|
| |||||||
Materials—0.1% | ||||||||
41,011 | Tantech Holdings Ltd. (China)(b)(c) | 188,651 | ||||||
|
| |||||||
Telecommunication Services—7.0% | ||||||||
177,688 | China Mobile Ltd. ADR (China) | 10,220,614 | ||||||
9,834 | China Telecom Corp. Ltd., H-Shares ADR (China) | 488,160 | ||||||
65,803 | China Unicom (Hong Kong) Ltd. ADR (China) | 769,895 | ||||||
|
| |||||||
11,478,669 | ||||||||
|
| |||||||
Utilities—0.3% | ||||||||
15,338 | Huaneng Power International, Inc., H-Shares ADR (China) | 435,446 | ||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $161,023,845) | 163,312,552 | |||||||
|
| |||||||
Money Market Fund—0.1% | ||||||||
160,626 | Invesco Premier Portfolio—Institutional Class, 0.39%(d) (Cost $160,626) | 160,626 | ||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $161,184,471)—100.1% | 163,473,178 | |||||||
|
| |||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 33 |
|
PowerShares Golden Dragon China Portfolio (PGJ) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—13.5% | ||||||||
22,035,328 | Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(d)(e) (Cost $22,035,328) | $ | 22,035,328 | |||||
|
| |||||||
Total Investments (Cost $183,219,799)—113.6% | 185,508,506 | |||||||
Other assets less liabilities—(13.6)% | (22,260,272 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 163,248,234 | ||||||
|
|
Investment Abbreviations:
ADR—American Depositary Receipt
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | All or a portion of this security was out on loan at April 30, 2016. |
(c) | Non-income producing security. |
(d) | The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
(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 2J. |
This Fund has holdings greater than 10% of net assets in the following country:
China | 95.8 | % |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 34 |
|
Schedule of Investments(a)
PowerShares S&P 500 BuyWrite Portfolio (PBP)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests(b)—100.7% | ||||||||
Consumer Discretionary—13.1% | ||||||||
1,221 | Advance Auto Parts, Inc. | $ | 190,598 | |||||
6,424 | Amazon.com, Inc.(c) | 4,237,206 | ||||||
1,232 | AutoNation, Inc.(c) | 62,401 | ||||||
500 | AutoZone, Inc.(c) | 382,615 | ||||||
2,724 | Bed Bath & Beyond, Inc.(c) | 128,627 | ||||||
4,687 | Best Buy Co., Inc. | 150,359 | ||||||
3,641 | BorgWarner, Inc. | 130,785 | ||||||
3,700 | Cablevision Systems Corp., Class A | 123,543 | ||||||
3,257 | CarMax, Inc.(c) | 172,458 | ||||||
7,494 | Carnival Corp. | 367,581 | ||||||
7,017 | CBS Corp., Class B | 392,320 | ||||||
498 | Chipotle Mexican Grill, Inc.(c) | 209,643 | ||||||
4,618 | Coach, Inc. | 185,967 | ||||||
40,482 | Comcast Corp., Class A | 2,459,686 | ||||||
5,473 | D.R. Horton, Inc. | 164,518 | ||||||
1,917 | Darden Restaurants, Inc. | 119,333 | ||||||
4,615 | Delphi Automotive PLC (United Kingdom) | 339,802 | ||||||
2,493 | Discovery Communications, Inc., Class A(c) | 68,084 | ||||||
3,956 | Discovery Communications, Inc., Class C(c) | 105,942 | ||||||
4,837 | Dollar General Corp. | 396,199 | ||||||
3,909 | Dollar Tree, Inc.(c) | 311,586 | ||||||
1,969 | Expedia, Inc., Class A | 227,951 | ||||||
2,282 | Foot Locker, Inc. | 140,206 | ||||||
64,870 | Ford Motor Co. | 879,637 | ||||||
3,764 | Gap, Inc. (The) | 87,250 | ||||||
1,955 | Garmin Ltd. | 83,342 | ||||||
23,384 | General Motors Co. | 743,611 | ||||||
2,491 | Genuine Parts Co. | 239,061 | ||||||
4,444 | Goodyear Tire & Rubber Co. (The) | 128,743 | ||||||
3,929 | H&R Block, Inc. | 79,523 | ||||||
6,519 | Hanesbrands, Inc. | 189,247 | ||||||
3,065 | Harley-Davidson, Inc. | 146,599 | ||||||
1,184 | Harman International Industries, Inc. | 90,884 | ||||||
1,872 | Hasbro, Inc. | 158,446 | ||||||
21,095 | Home Depot, Inc. (The) | 2,824,410 | ||||||
6,690 | Interpublic Group of Cos., Inc. (The) | 153,469 | ||||||
10,784 | Johnson Controls, Inc. | 446,458 | ||||||
3,156 | Kohl’s Corp. | 139,811 | ||||||
4,242 | L Brands, Inc. | 332,106 | ||||||
2,256 | Leggett & Platt, Inc. | 111,198 | ||||||
2,998 | Lennar Corp., Class A | 135,839 | ||||||
15,226 | Lowe’s Cos., Inc. | 1,157,481 | ||||||
5,160 | Macy’s, Inc. | 204,284 | ||||||
3,161 | Marriott International, Inc., Class A | 221,554 | ||||||
5,659 | Mattel, Inc. | 175,938 | ||||||
15,002 | McDonald’s Corp. | 1,897,603 | ||||||
2,987 | Michael Kors Holdings Ltd.(c) | 154,308 | ||||||
1,055 | Mohawk Industries, Inc.(c) | 203,225 | ||||||
7,125 | Netflix, Inc.(c) | 641,464 | ||||||
7,599 | Newell Brands, Inc. | 346,058 | ||||||
6,319 | News Corp., Class A | 78,482 | ||||||
1,794 | News Corp., Class B | 23,250 | ||||||
22,457 | NIKE, Inc., Class B | 1,323,616 | ||||||
2,138 | Nordstrom, Inc. | 109,316 | ||||||
3,983 | Omnicom Group, Inc. | 330,470 | ||||||
1,613 | O’Reilly Automotive, Inc.(c) | 423,703 | ||||||
824 | Priceline Group, Inc. (The)(c) | 1,107,176 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests(b) (continued) | ||||||||
Consumer Discretionary (continued) | ||||||||
5,287 | PulteGroup, Inc. | $ | 97,228 | |||||
1,361 | PVH Corp. | 130,112 | ||||||
969 | Ralph Lauren Corp., Class A | 90,320 | ||||||
6,738 | Ross Stores, Inc. | 382,584 | ||||||
2,818 | Royal Caribbean Cruises Ltd. | 218,113 | ||||||
1,582 | Scripps Networks Interactive, Inc., Class A | 98,638 | ||||||
1,320 | Signet Jewelers Ltd. | 143,299 | ||||||
10,741 | Staples, Inc. | 109,558 | ||||||
24,592 | Starbucks Corp. | 1,382,808 | ||||||
2,805 | Starwood Hotels & Resorts Worldwide, Inc. | 229,673 | ||||||
10,022 | Target Corp. | 796,749 | ||||||
3,660 | TEGNA, Inc. | 85,498 | ||||||
1,859 | Tiffany & Co. | 132,640 | ||||||
4,713 | Time Warner Cable, Inc. | 999,674 | ||||||
13,146 | Time Warner, Inc. | 987,790 | ||||||
11,140 | TJX Cos., Inc. (The) | 844,635 | ||||||
2,222 | Tractor Supply Co. | 210,335 | ||||||
1,899 | TripAdvisor, Inc., Class A(c) | 122,656 | ||||||
18,622 | Twenty-First Century Fox, Inc., Class A | 563,502 | ||||||
7,178 | Twenty-First Century Fox, Inc., Class B | 216,201 | ||||||
1,057 | Ulta Salon, Cosmetics & Fragrance, Inc.(c) | 220,152 | ||||||
3,025 | Under Armour, Inc., Class A(c) | 132,919 | ||||||
3,025 | Under Armour, Inc., Class C(c) | 123,420 | ||||||
1,444 | Urban Outfitters, Inc.(c) | 43,782 | ||||||
5,652 | VF Corp. | 356,359 | ||||||
5,762 | Viacom, Inc., Class B | 235,666 | ||||||
24,977 | Walt Disney Co. (The) | 2,579,125 | ||||||
1,288 | Whirlpool Corp. | 224,292 | ||||||
1,875 | Wyndham Worldwide Corp. | 133,031 | ||||||
1,351 | Wynn Resorts Ltd. | 119,293 | ||||||
6,802 | Yum! Brands, Inc. | 541,167 | ||||||
|
| |||||||
38,986,191 | ||||||||
|
| |||||||
Consumer Staples—10.3% | ||||||||
32,578 | Altria Group, Inc. | 2,042,966 | ||||||
9,903 | Archer-Daniels-Midland Co. | 395,526 | ||||||
1,670 | Brown-Forman Corp., Class B | 160,854 | ||||||
2,993 | Campbell Soup Co. | 184,698 | ||||||
2,161 | Church & Dwight Co., Inc. | 200,325 | ||||||
2,156 | Clorox Co. (The) | 269,996 | ||||||
64,834 | Coca-Cola Co. (The) | 2,904,563 | ||||||
3,479 | Coca-Cola Enterprises, Inc. | 182,578 | ||||||
14,852 | Colgate-Palmolive Co. | 1,053,304 | ||||||
7,220 | ConAgra Foods, Inc. | 321,723 | ||||||
2,926 | Constellation Brands, Inc., Class A | 456,632 | ||||||
7,317 | Costco Wholesale Corp. | 1,083,867 | ||||||
18,280 | CVS Health Corp. | 1,837,140 | ||||||
3,115 | Dr Pepper Snapple Group, Inc. | 283,185 | ||||||
3,689 | Estee Lauder Cos., Inc. (The), Class A | 353,664 | ||||||
9,870 | General Mills, Inc. | 605,426 | ||||||
2,387 | Hershey Co. (The) | 222,254 | ||||||
4,500 | Hormel Foods Corp. | 173,475 | ||||||
1,989 | JM Smucker Co. (The) | 252,563 | ||||||
4,198 | Kellogg Co. | 322,448 | ||||||
6,004 | Kimberly-Clark Corp. | 751,641 | ||||||
9,891 | Kraft Heinz Co. (The) | 772,190 | ||||||
16,221 | Kroger Co. (The) | 574,061 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 35 |
|
PowerShares S&P 500 BuyWrite Portfolio (PBP) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests(b) (continued) | ||||||||
Consumer Staples (continued) | ||||||||
1,916 | McCormick & Co., Inc. | $ | 179,683 | |||||
3,099 | Mead Johnson Nutrition Co. | 270,078 | ||||||
3,062 | Molson Coors Brewing Co., Class B | 292,819 | ||||||
26,104 | Mondelez International, Inc., Class A | 1,121,428 | ||||||
2,494 | Monster Beverage Corp.(c) | 359,685 | ||||||
24,050 | PepsiCo, Inc. | 2,476,188 | ||||||
25,778 | Philip Morris International, Inc. | 2,529,337 | ||||||
44,131 | Procter & Gamble Co. (The) | 3,535,776 | ||||||
13,774 | Reynolds American, Inc. | 683,190 | ||||||
8,735 | Sysco Corp. | 402,421 | ||||||
4,873 | Tyson Foods, Inc., Class A | 320,741 | ||||||
14,359 | Walgreens Boots Alliance, Inc. | 1,138,382 | ||||||
26,105 | Wal-Mart Stores, Inc. | 1,745,641 | ||||||
5,404 | Whole Foods Market, Inc. | 157,148 | ||||||
|
| |||||||
30,617,596 | ||||||||
|
| |||||||
Energy—7.3% | ||||||||
8,458 | Anadarko Petroleum Corp. | 446,244 | ||||||
6,298 | Apache Corp. | 342,611 | ||||||
7,284 | Baker Hughes, Inc. | 352,254 | ||||||
7,622 | Cabot Oil & Gas Corp. | 178,355 | ||||||
8,612 | Chesapeake Energy Corp. | 59,164 | ||||||
31,332 | Chevron Corp. | 3,201,504 | ||||||
1,581 | Cimarex Energy Co. | 172,139 | ||||||
6,650 | Columbia Pipeline Group, Inc. | 170,373 | ||||||
2,151 | Concho Resources, Inc.(c) | 249,882 | ||||||
20,570 | ConocoPhillips | 983,040 | ||||||
8,491 | Devon Energy Corp. | 294,468 | ||||||
1,070 | Diamond Offshore Drilling, Inc. | 25,958 | ||||||
9,151 | EOG Resources, Inc. | 756,056 | ||||||
2,657 | EQT Corp. | 186,256 | ||||||
69,093 | Exxon Mobil Corp. | 6,107,821 | ||||||
3,774 | FMC Technologies, Inc.(c) | 115,069 | ||||||
14,279 | Halliburton Co. | 589,866 | ||||||
1,798 | Helmerich & Payne, Inc. | 118,884 | ||||||
4,406 | Hess Corp. | 262,686 | ||||||
30,445 | Kinder Morgan, Inc. | 540,703 | ||||||
14,036 | Marathon Oil Corp. | 197,767 | ||||||
8,805 | Marathon Petroleum Corp. | 344,099 | ||||||
2,692 | Murphy Oil Corp. | 96,212 | ||||||
6,255 | National Oilwell Varco, Inc. | 225,430 | ||||||
3,299 | Newfield Exploration Co.(c) | 119,589 | ||||||
7,138 | Noble Energy, Inc. | 257,753 | ||||||
12,712 | Occidental Petroleum Corp. | 974,375 | ||||||
3,493 | ONEOK, Inc. | 126,272 | ||||||
7,808 | Phillips 66 | 641,115 | ||||||
2,719 | Pioneer Natural Resources Co. | 451,626 | ||||||
2,818 | Range Resources Corp. | 124,302 | ||||||
23,134 | Schlumberger Ltd. | 1,858,586 | ||||||
6,484 | Southwestern Energy Co.(c) | 87,080 | ||||||
11,173 | Spectra Energy Corp. | 349,380 | ||||||
1,983 | Tesoro Corp. | 158,025 | ||||||
5,698 | Transocean Ltd. | 63,134 | ||||||
7,824 | Valero Energy Corp. | 460,599 | ||||||
11,354 | Williams Cos., Inc. (The) | 220,154 | ||||||
|
| |||||||
21,908,831 | ||||||||
|
|
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests(b) (continued) | ||||||||
Financials—16.2% | ||||||||
899 | Affiliated Managers Group, Inc.(c) | $ | 153,118 | |||||
6,987 | Aflac, Inc. | 481,893 | ||||||
6,298 | Allstate Corp. (The) | 409,685 | ||||||
13,630 | American Express Co. | 891,811 | ||||||
19,127 | American International Group, Inc. | 1,067,669 | ||||||
7,054 | American Tower Corp. REIT | 739,823 | ||||||
2,808 | Ameriprise Financial, Inc. | 269,287 | ||||||
4,497 | Aon PLC | 472,725 | ||||||
2,605 | Apartment Investment & Management Co., Class A REIT | 104,356 | ||||||
1,076 | Assurant, Inc. | 90,997 | ||||||
2,278 | AvalonBay Communities, Inc. REIT | 402,728 | ||||||
171,803 | Bank of America Corp. | 2,501,452 | ||||||
17,900 | Bank of New York Mellon Corp. (The) | 720,296 | ||||||
13,510 | BB&T Corp. | 477,984 | ||||||
31,175 | Berkshire Hathaway, Inc., Class B(c) | 4,535,339 | ||||||
2,102 | BlackRock, Inc. | 749,006 | ||||||
2,553 | Boston Properties, Inc. REIT | 328,979 | ||||||
8,774 | Capital One Financial Corp. | 635,150 | ||||||
4,834 | CBRE Group, Inc., Class A(c) | 143,231 | ||||||
19,996 | Charles Schwab Corp. (The) | 568,086 | ||||||
7,669 | Chubb Ltd. | 903,868 | ||||||
2,464 | Cincinnati Financial Corp. | 162,649 | ||||||
49,055 | Citigroup, Inc. | 2,270,265 | ||||||
8,781 | Citizens Financial Group, Inc. | 200,646 | ||||||
5,632 | CME Group, Inc., Class A | 517,637 | ||||||
2,909 | Comerica, Inc. | 129,159 | ||||||
5,553 | Crown Castle International Corp. REIT | 482,445 | ||||||
6,888 | Discover Financial Services | 387,588 | ||||||
4,704 | E*TRADE Financial Corp.(c) | 118,447 | ||||||
1,145 | Equinix, Inc. REIT | 378,251 | ||||||
6,073 | Equity Residential REIT | 413,389 | ||||||
1,086 | Essex Property Trust, Inc. REIT | 239,409 | ||||||
2,081 | Extra Space Storage, Inc. REIT | 176,781 | ||||||
1,159 | Federal Realty Investment Trust REIT | 176,261 | ||||||
13,035 | Fifth Third Bancorp | 238,671 | ||||||
6,214 | Franklin Resources, Inc. | 232,031 | ||||||
9,690 | General Growth Properties, Inc. REIT | 271,611 | ||||||
6,538 | Goldman Sachs Group, Inc. (The) | 1,072,951 | ||||||
6,597 | Hartford Financial Services Group, Inc. (The) | 292,775 | ||||||
7,749 | HCP, Inc. REIT | 262,149 | ||||||
12,514 | Host Hotels & Resorts, Inc. REIT | 197,971 | ||||||
13,230 | Huntington Bancshares, Inc. | 133,094 | ||||||
1,976 | Intercontinental Exchange, Inc. | 474,299 | ||||||
6,925 | Invesco Ltd.(d) | 214,744 | ||||||
3,202 | Iron Mountain, Inc. REIT | 116,969 | ||||||
61,070 | JPMorgan Chase & Co. | 3,859,624 | ||||||
13,906 | KeyCorp | 170,905 | ||||||
6,887 | Kimco Realty Corp. REIT | 193,662 | ||||||
1,793 | Legg Mason, Inc. | 57,573 | ||||||
5,544 | Leucadia National Corp. | 92,474 | ||||||
4,006 | Lincoln National Corp. | 174,061 | ||||||
4,457 | Loews Corp. | 176,854 | ||||||
2,647 | M&T Bank Corp. | 313,193 | ||||||
2,111 | Macerich Co. (The) REIT | 160,605 | ||||||
8,669 | Marsh & McLennan Cos., Inc. | 547,447 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 36 |
|
PowerShares S&P 500 BuyWrite Portfolio (PBP) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests(b) (continued) | ||||||||
Financials (continued) | ||||||||
18,248 | MetLife, Inc. | $ | 822,985 | |||||
2,818 | Moody’s Corp. | 269,739 | ||||||
25,416 | Morgan Stanley | 687,757 | ||||||
1,904 | Nasdaq, Inc. | 117,496 | ||||||
5,708 | Navient Corp. | 78,028 | ||||||
3,583 | Northern Trust Corp. | 254,680 | ||||||
5,162 | People’s United Financial, Inc. | 80,011 | ||||||
8,341 | PNC Financial Services Group, Inc. (The) | 732,173 | ||||||
4,516 | Principal Financial Group, Inc. | 192,743 | ||||||
9,723 | Progressive Corp. (The) | 316,970 | ||||||
8,730 | Prologis, Inc. REIT | 396,429 | ||||||
7,423 | Prudential Financial, Inc. | 576,322 | ||||||
2,454 | Public Storage REIT | 600,764 | ||||||
4,168 | Realty Income Corp. REIT | 246,745 | ||||||
21,428 | Regions Financial Corp. | 200,995 | ||||||
4,415 | S&P Global, Inc.(e) | 471,743 | ||||||
5,145 | Simon Property Group, Inc. REIT | 1,035,020 | ||||||
1,663 | SL Green Realty Corp. REIT | 174,748 | ||||||
6,653 | State Street Corp. | 414,482 | ||||||
8,400 | SunTrust Banks, Inc. | 350,616 | ||||||
13,876 | Synchrony Financial(c) | 424,189 | ||||||
4,130 | T. Rowe Price Group, Inc. | 310,948 | ||||||
1,880 | Torchmark Corp. | 108,833 | ||||||
4,906 | Travelers Cos., Inc. (The) | 539,169 | ||||||
27,169 | U.S. Bancorp | 1,159,845 | ||||||
4,446 | UDR, Inc. REIT | 155,254 | ||||||
3,971 | Unum Group | 135,848 | ||||||
5,593 | Ventas, Inc. REIT | 347,437 | ||||||
2,950 | Vornado Realty Trust REIT | 282,403 | ||||||
76,868 | Wells Fargo & Co. | 3,841,863 | ||||||
5,910 | Welltower, Inc. REIT | 410,272 | ||||||
13,132 | Weyerhaeuser Co. REIT | 421,800 | ||||||
2,298 | Willis Towers Watson PLC | 287,020 | ||||||
4,851 | XL Group PLC | 158,773 | ||||||
3,400 | Zions Bancorporation | 93,568 | ||||||
|
| |||||||
48,251,741 | ||||||||
|
| |||||||
Health Care—14.7% | ||||||||
24,509 | Abbott Laboratories | 953,400 | ||||||
26,807 | AbbVie, Inc. | 1,635,227 | ||||||
5,815 | Aetna, Inc. | 652,850 | ||||||
5,450 | Agilent Technologies, Inc. | 223,014 | ||||||
3,747 | Alexion Pharmaceuticals, Inc.(c) | 521,882 | ||||||
6,570 | Allergan PLC(c) | 1,422,799 | ||||||
3,187 | AmerisourceBergen Corp. | 271,214 | ||||||
12,511 | Amgen, Inc. | 1,980,491 | ||||||
4,347 | Anthem, Inc. | 611,927 | ||||||
11,332 | Baxalta, Inc. | 475,377 | ||||||
9,116 | Baxter International, Inc. | 403,110 | ||||||
3,524 | Becton, Dickinson and Co. | 568,280 | ||||||
3,642 | Biogen, Inc.(c) | 1,001,514 | ||||||
22,431 | Boston Scientific Corp.(c) | 491,688 | ||||||
27,775 | Bristol-Myers Squibb Co. | 2,004,800 | ||||||
1,228 | C.R. Bard, Inc. | 260,545 | ||||||
5,477 | Cardinal Health, Inc. | 429,725 | ||||||
13,009 | Celgene Corp.(c) | 1,345,261 | ||||||
2,825 | Centene Corp.(c) | 175,037 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests(b) (continued) | ||||||||
Health Care (continued) | ||||||||
5,036 | Cerner Corp.(c) | $ | 282,721 | |||||
4,252 | Cigna Corp. | 589,072 | ||||||
2,760 | DaVita HealthCare Partners, Inc.(c) | 203,964 | ||||||
4,012 | Dentsply Sirona, Inc. | 239,115 | ||||||
3,572 | Edwards Lifesciences Corp.(c) | 379,382 | ||||||
16,197 | Eli Lilly & Co. | 1,223,359 | ||||||
3,398 | Endo International PLC(c) | 91,746 | ||||||
10,528 | Express Scripts Holding Co.(c) | 776,229 | ||||||
22,739 | Gilead Sciences, Inc. | 2,005,807 | ||||||
5,089 | HCA Holdings, Inc.(c) | 410,275 | ||||||
1,361 | Henry Schein, Inc.(c) | 229,601 | ||||||
4,108 | Hologic, Inc.(c) | 137,988 | ||||||
2,471 | Humana, Inc. | 437,540 | ||||||
2,449 | Illumina, Inc.(c) | 330,591 | ||||||
623 | Intuitive Surgical, Inc.(c) | 390,222 | ||||||
45,909 | Johnson & Johnson | 5,145,481 | ||||||
1,690 | Laboratory Corp. of America Holdings(c) | 211,791 | ||||||
1,865 | Mallinckrodt PLC(c) | 116,600 | ||||||
3,803 | McKesson Corp. | 638,219 | ||||||
23,395 | Medtronic PLC | 1,851,714 | ||||||
46,172 | Merck & Co., Inc. | 2,532,073 | ||||||
6,862 | Mylan NV(c) | 286,214 | ||||||
1,387 | Patterson Cos., Inc. | 60,126 | ||||||
1,828 | PerkinElmer, Inc. | 92,168 | ||||||
2,439 | Perrigo Co. PLC | 235,778 | ||||||
100,634 | Pfizer, Inc. | 3,291,738 | ||||||
2,376 | Quest Diagnostics, Inc. | 178,604 | ||||||
1,302 | Regeneron Pharmaceuticals, Inc.(c) | 490,476 | ||||||
4,719 | St. Jude Medical, Inc. | 359,588 | ||||||
5,211 | Stryker Corp. | 568,051 | ||||||
6,594 | Thermo Fisher Scientific, Inc. | 951,185 | ||||||
15,818 | UnitedHealth Group, Inc. | 2,082,914 | ||||||
1,505 | Universal Health Services, Inc., Class B | 201,188 | ||||||
1,593 | Varian Medical Systems, Inc.(c) | 129,320 | ||||||
4,099 | Vertex Pharmaceuticals, Inc.(c) | 345,710 | ||||||
1,349 | Waters Corp.(c) | 175,586 | ||||||
2,979 | Zimmer Biomet Holdings, Inc. | 344,879 | ||||||
7,609 | Zoetis, Inc. | 357,851 | ||||||
|
| |||||||
43,803,007 | ||||||||
|
| |||||||
Industrials—10.2% | ||||||||
10,069 | 3M Co. | 1,685,349 | ||||||
2,753 | ADT Corp. (The) | 115,571 | ||||||
1,603 | Allegion PLC | 104,916 | ||||||
10,035 | American Airlines Group, Inc. | 348,114 | ||||||
3,922 | AMETEK, Inc. | 188,609 | ||||||
10,365 | Boeing Co. (The) | 1,397,202 | ||||||
2,384 | C.H. Robinson Worldwide, Inc. | 169,193 | ||||||
9,689 | Caterpillar, Inc. | 753,029 | ||||||
1,457 | Cintas Corp. | 130,809 | ||||||
16,022 | CSX Corp. | 436,920 | ||||||
2,699 | Cummins, Inc. | 315,864 | ||||||
9,946 | Danaher Corp. | 962,276 | ||||||
4,985 | Deere & Co. | 419,288 | ||||||
12,954 | Delta Air Lines, Inc. | 539,793 | ||||||
2,577 | Dover Corp. | 169,309 | ||||||
602 | Dun & Bradstreet Corp. (The) | 66,467 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 37 |
|
PowerShares S&P 500 BuyWrite Portfolio (PBP) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests(b) (continued) | ||||||||
Industrials (continued) | ||||||||
7,636 | Eaton Corp. PLC | $ | 483,130 | |||||
10,697 | Emerson Electric Co. | 584,377 | ||||||
1,973 | Equifax, Inc. | 237,253 | ||||||
3,033 | Expeditors International of Washington, Inc. | 150,467 | ||||||
4,803 | Fastenal Co. | 224,732 | ||||||
4,261 | FedEx Corp. | 703,534 | ||||||
2,167 | Flowserve Corp. | 105,771 | ||||||
2,310 | Fluor Corp. | 126,265 | ||||||
4,863 | General Dynamics Corp. | 683,349 | ||||||
155,244 | General Electric Co. | 4,773,753 | ||||||
12,797 | Honeywell International, Inc. | 1,462,313 | ||||||
5,444 | Illinois Tool Works, Inc. | 569,007 | ||||||
4,270 | Ingersoll-Rand PLC | 279,856 | ||||||
1,482 | J.B. Hunt Transport Services, Inc. | 122,828 | ||||||
2,039 | Jacobs Engineering Group, Inc.(c) | 90,899 | ||||||
1,806 | Kansas City Southern | 171,119 | ||||||
1,298 | L-3 Communications Holdings, Inc. | 170,726 | ||||||
4,370 | Lockheed Martin Corp. | 1,015,501 | ||||||
5,555 | Masco Corp. | 170,594 | ||||||
6,018 | Nielsen Holdings PLC | 313,779 | ||||||
4,961 | Norfolk Southern Corp. | 447,036 | ||||||
3,012 | Northrop Grumman Corp. | 621,255 | ||||||
5,846 | PACCAR, Inc. | 344,388 | ||||||
2,245 | Parker-Hannifin Corp. | 260,465 | ||||||
3,039 | Pentair PLC (United Kingdom) | 176,505 | ||||||
3,186 | Pitney Bowes, Inc. | 66,810 | ||||||
2,659 | Quanta Services, Inc.(c) | 63,072 | ||||||
4,974 | Raytheon Co. | 628,465 | ||||||
3,956 | Republic Services, Inc. | 186,209 | ||||||
2,186 | Robert Half International, Inc. | 83,746 | ||||||
2,191 | Rockwell Automation, Inc. | 248,613 | ||||||
2,186 | Rockwell Collins, Inc. | 192,783 | ||||||
1,680 | Roper Technologies, Inc. | 295,831 | ||||||
891 | Ryder System, Inc. | 61,408 | ||||||
969 | Snap-on, Inc. | 154,342 | ||||||
10,618 | Southwest Airlines Co. | 473,669 | ||||||
2,532 | Stanley Black & Decker, Inc. | 283,381 | ||||||
1,413 | Stericycle, Inc.(c) | 135,026 | ||||||
4,515 | Textron, Inc. | 174,640 | ||||||
7,066 | Tyco International PLC | 272,182 | ||||||
14,084 | Union Pacific Corp. | 1,228,547 | ||||||
5,984 | United Continental Holdings, Inc.(c) | 274,127 | ||||||
11,485 | United Parcel Service, Inc., Class B | 1,206,729 | ||||||
1,515 | United Rentals, Inc.(c) | 101,399 | ||||||
12,944 | United Technologies Corp. | 1,350,965 | ||||||
2,570 | Verisk Analytics, Inc.(c) | 199,381 | ||||||
947 | W.W. Grainger, Inc. | 222,090 | ||||||
6,892 | Waste Management, Inc. | 405,181 | ||||||
2,971 | Xylem, Inc. | 124,128 | ||||||
|
| |||||||
30,524,335 | ||||||||
|
| |||||||
Information Technology—19.8% | ||||||||
10,445 | Accenture PLC, Class A | 1,179,449 | ||||||
8,436 | Activision Blizzard, Inc. | 290,789 | ||||||
8,293 | Adobe Systems, Inc.(c) | 781,366 | ||||||
2,942 | Akamai Technologies, Inc.(c) | 150,013 | ||||||
989 | Alliance Data Systems Corp.(c) | 201,074 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests(b) (continued) | ||||||||
Information Technology (continued) | ||||||||
4,865 | Alphabet, Inc., Class A(c) | $ | 3,443,836 | |||||
4,943 | Alphabet, Inc., Class C(c) | 3,425,548 | ||||||
5,129 | Amphenol Corp., Class A | 286,352 | ||||||
5,155 | Analog Devices, Inc. | 290,330 | ||||||
92,251 | Apple, Inc. | 8,647,609 | ||||||
18,815 | Applied Materials, Inc. | 385,143 | ||||||
3,747 | Autodesk, Inc.(c) | 224,146 | ||||||
7,611 | Automatic Data Processing, Inc. | 673,117 | ||||||
6,170 | Broadcom Ltd. (Singapore) | 899,277 | ||||||
4,922 | CA, Inc. | 145,986 | ||||||
83,724 | Cisco Systems, Inc. | 2,301,573 | ||||||
2,560 | Citrix Systems, Inc.(c) | 209,510 | ||||||
10,131 | Cognizant Technology Solutions Corp., Class A(c) | 591,346 | ||||||
18,518 | Corning, Inc. | 345,731 | ||||||
2,266 | CSRA, Inc. | 58,825 | ||||||
18,039 | eBay, Inc.(c) | 440,693 | ||||||
5,142 | Electronic Arts, Inc.(c) | 318,033 | ||||||
32,392 | EMC Corp. | 845,755 | ||||||
1,143 | F5 Networks, Inc.(c) | 119,729 | ||||||
38,187 | Facebook, Inc., Class A(c) | 4,490,027 | ||||||
4,591 | Fidelity National Information Services, Inc. | 302,088 | ||||||
1,273 | First Solar, Inc.(c) | 71,084 | ||||||
3,707 | Fiserv, Inc.(c) | 362,248 | ||||||
2,287 | FLIR Systems, Inc. | 69,090 | ||||||
2,588 | Global Payments, Inc. | 186,802 | ||||||
2,074 | Harris Corp. | 165,941 | ||||||
28,565 | Hewlett Packard Enterprise Co. | 475,893 | ||||||
28,729 | HP, Inc. | 352,505 | ||||||
78,601 | Intel Corp. | 2,380,038 | ||||||
14,710 | International Business Machines Corp. | 2,146,777 | ||||||
4,269 | Intuit, Inc. | 430,699 | ||||||
5,857 | Juniper Networks, Inc. | 137,054 | ||||||
2,588 | KLA-Tencor Corp. | 181,005 | ||||||
2,644 | Lam Research Corp. | 202,002 | ||||||
3,979 | Linear Technology Corp. | 176,986 | ||||||
16,312 | MasterCard, Inc., Class A | 1,582,101 | ||||||
3,554 | Microchip Technology, Inc. | 172,689 | ||||||
17,261 | Micron Technology, Inc.(c) | 185,556 | ||||||
131,597 | Microsoft Corp. | 6,562,742 | ||||||
2,640 | Motorola Solutions, Inc. | 198,502 | ||||||
4,814 | NetApp, Inc. | 113,803 | ||||||
8,504 | NVIDIA Corp. | 302,147 | ||||||
52,425 | Oracle Corp. | 2,089,660 | ||||||
5,347 | Paychex, Inc. | 278,686 | ||||||
18,514 | PayPal Holdings, Inc.(c) | 725,379 | ||||||
2,150 | Qorvo, Inc.(c) | 96,814 | ||||||
24,871 | QUALCOMM, Inc. | 1,256,483 | ||||||
3,042 | Red Hat, Inc.(c) | 223,192 | ||||||
10,491 | salesforce.com, inc.(c) | 795,218 | ||||||
3,348 | SanDisk Corp. | 251,535 | ||||||
4,931 | Seagate Technology PLC | 107,348 | ||||||
3,188 | Skyworks Solutions, Inc. | 213,022 | ||||||
10,145 | Symantec Corp. | 168,864 | ||||||
6,150 | TE Connectivity Ltd. (Switzerland) | 365,802 | ||||||
2,209 | Teradata Corp.(c) | 55,888 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 38 |
|
PowerShares S&P 500 BuyWrite Portfolio (PBP) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests(b) (continued) | ||||||||
Information Technology (continued) | ||||||||
16,727 | Texas Instruments, Inc. | $ | 954,108 | |||||
2,800 | Total System Services, Inc. | 143,192 | ||||||
1,607 | VeriSign, Inc.(c) | 138,845 | ||||||
31,931 | Visa, Inc., Class A | 2,466,350 | ||||||
3,875 | Western Digital Corp. | 158,352 | ||||||
8,352 | Western Union Co. (The) | 167,040 | ||||||
15,842 | Xerox Corp. | 152,083 | ||||||
4,248 | Xilinx, Inc. | 183,004 | ||||||
14,496 | Yahoo!, Inc.(c) | 530,554 | ||||||
|
| |||||||
59,024,428 | ||||||||
|
| |||||||
Materials—3.0% | ||||||||
3,229 | Air Products & Chemicals, Inc. | 471,079 | ||||||
1,082 | Airgas, Inc. | 154,120 | ||||||
21,874 | Alcoa, Inc. | 244,333 | ||||||
1,488 | Avery Dennison Corp. | 108,044 | ||||||
2,359 | Ball Corp. | 168,385 | ||||||
3,880 | CF Industries Holdings, Inc. | 128,312 | ||||||
18,590 | Dow Chemical Co. (The) | 978,020 | ||||||
14,502 | E.I. du Pont de Nemours & Co. | 955,827 | ||||||
2,463 | Eastman Chemical Co. | 188,124 | ||||||
4,433 | Ecolab, Inc. | 509,706 | ||||||
2,220 | FMC Corp. | 96,037 | ||||||
20,829 | Freeport-McMoRan, Inc. | 291,606 | ||||||
1,326 | International Flavors & Fragrances, Inc. | 158,417 | ||||||
6,843 | International Paper Co. | 296,097 | ||||||
5,750 | LyondellBasell Industries NV, Class A | 475,352 | ||||||
1,068 | Martin Marietta Materials, Inc. | 180,738 | ||||||
7,327 | Monsanto Co. | 686,393 | ||||||
5,865 | Mosaic Co. (The) | 164,161 | ||||||
8,804 | Newmont Mining Corp. | 307,876 | ||||||
5,290 | Nucor Corp. | 263,336 | ||||||
2,679 | Owens-Illinois, Inc.(c) | 49,454 | ||||||
4,440 | PPG Industries, Inc. | 490,132 | ||||||
4,741 | Praxair, Inc. | 556,878 | ||||||
3,262 | Sealed Air Corp. | 154,488 | ||||||
1,308 | Sherwin-Williams Co. (The) | 375,801 | ||||||
2,212 | Vulcan Materials Co. | 238,078 | ||||||
4,227 | WestRock Co. | 176,900 | ||||||
|
| |||||||
8,867,694 | ||||||||
|
| |||||||
Telecommunication Services—2.7% | ||||||||
102,348 | AT&T, Inc. | 3,973,149 | ||||||
9,047 | CenturyLink, Inc. | 280,005 | ||||||
19,439 | Frontier Communications Corp. | 108,081 | ||||||
4,813 | Level 3 Communications, Inc.(c) | 251,527 | ||||||
67,785 | Verizon Communications, Inc. | 3,452,968 | ||||||
|
| |||||||
8,065,730 | ||||||||
|
| |||||||
Utilities—3.4% | ||||||||
10,980 | AES Corp. (The) | 122,537 | ||||||
2,002 | AGL Resources, Inc. | 131,852 | ||||||
4,035 | Ameren Corp. | 193,680 | ||||||
8,169 | American Electric Power Co., Inc. | 518,731 | ||||||
2,963 | American Water Works Co., Inc. | 215,588 | ||||||
7,162 | CenterPoint Energy, Inc. | 153,625 | ||||||
4,609 | CMS Energy Corp. | 187,494 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests(b) (continued) | ||||||||
Utilities (continued) | ||||||||
4,882 | Consolidated Edison, Inc. | $ | 364,197 | |||||
9,923 | Dominion Resources, Inc. | 709,197 | ||||||
2,988 | DTE Energy Co. | 266,410 | ||||||
11,455 | Duke Energy Corp. | 902,425 | ||||||
5,422 | Edison International | 383,390 | ||||||
2,971 | Entergy Corp. | 223,360 | ||||||
5,278 | Eversource Energy | 297,890 | ||||||
15,308 | Exelon Corp. | 537,158 | ||||||
7,049 | FirstEnergy Corp. | 229,727 | ||||||
7,665 | NextEra Energy, Inc. | 901,251 | ||||||
5,322 | NiSource, Inc. | 120,863 | ||||||
5,239 | NRG Energy, Inc. | 79,109 | ||||||
8,199 | PG&E Corp. | 477,182 | ||||||
1,850 | Pinnacle West Capital Corp. | 134,402 | ||||||
11,214 | PPL Corp. | 422,095 | ||||||
8,424 | Public Service Enterprise Group, Inc. | 388,599 | ||||||
2,379 | SCANA Corp. | 163,413 | ||||||
3,926 | Sempra Energy | 405,752 | ||||||
15,187 | Southern Co. (The) | 760,869 | ||||||
3,921 | TECO Energy, Inc. | 108,886 | ||||||
5,252 | WEC Energy Group, Inc. | 305,719 | ||||||
8,443 | Xcel Energy, Inc. | 337,973 | ||||||
|
| |||||||
10,043,374 | ||||||||
|
| |||||||
Total Investments (Cost $293,352,145)—100.7% | 300,092,927 | |||||||
Other assets less liabilities—(0.7)% | (2,197,759 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 297,895,168 | ||||||
|
|
Investment Abbreviations:
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | Except as otherwise noted, a portion of the securities in the Fund are subject to call options written. See Note 2H and Note 6. |
(c) | Non-income producing security. |
(d) | Affiliated company. The Fund’s Adviser is a wholly-owned subsidiary of Invesco Ltd. and therefore, Invesco Ltd. is considered to be affiliated. See Note 4. |
(e) | Security not subject to call options written. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 39 |
|
Schedule of Investments(a)
PowerShares S&P 500® Quality Portfolio (SPHQ)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.0% | ||||||||
Consumer Discretionary—20.4% | ||||||||
37,584 | Bed Bath & Beyond, Inc.(b) | $ | 1,774,716 | |||||
93,082 | CBS Corp., Class B | 5,204,215 | ||||||
24,901 | Darden Restaurants, Inc. | 1,550,087 | ||||||
64,293 | Delphi Automotive PLC (United Kingdom) | 4,733,894 | ||||||
39,574 | Dollar Tree, Inc.(b) | 3,154,443 | ||||||
21,152 | Expedia, Inc., Class A | 2,448,767 | ||||||
55,202 | Gap, Inc. (The) | 1,279,582 | ||||||
27,427 | Garmin Ltd. | 1,169,213 | ||||||
30,082 | Genuine Parts Co. | 2,886,970 | ||||||
298,505 | Home Depot, Inc. (The) | 39,966,834 | ||||||
30,161 | Leggett & Platt, Inc. | 1,486,636 | ||||||
177,517 | McDonald’s Corp. | 22,454,125 | ||||||
279,102 | NIKE, Inc., Class B | 16,450,272 | ||||||
21,666 | O’Reilly Automotive, Inc.(b) | 5,691,225 | ||||||
80,178 | Ross Stores, Inc. | 4,552,507 | ||||||
153,233 | Staples, Inc. | 1,562,977 | ||||||
279,934 | Starbucks Corp. | 15,740,689 | ||||||
37,733 | Starwood Hotels & Resorts Worldwide, Inc. | 3,089,578 | ||||||
129,414 | Target Corp. | 10,288,413 | ||||||
22,076 | Tiffany & Co. | 1,575,123 | ||||||
157,378 | TJX Cos., Inc. (The) | 11,932,400 | ||||||
26,029 | Tractor Supply Co. | 2,463,905 | ||||||
311,332 | Twenty-First Century Fox, Inc., Class A | 9,420,906 | ||||||
25,918 | Urban Outfitters, Inc.(b) | 785,834 | ||||||
72,981 | VF Corp. | 4,601,452 | ||||||
86,824 | Yum! Brands, Inc. | 6,907,717 | ||||||
|
| |||||||
183,172,480 | ||||||||
|
| |||||||
Consumer Staples—16.4% | ||||||||
383,714 | Altria Group, Inc. | 24,062,705 | ||||||
20,606 | Brown-Forman Corp., Class B | 1,984,770 | ||||||
167,852 | Colgate-Palmolive Co. | 11,904,064 | ||||||
33,876 | Dr Pepper Snapple Group, Inc. | 3,079,667 | ||||||
118,460 | Kraft Heinz Co. (The) | 9,248,172 | ||||||
51,911 | Mead Johnson Nutrition Co. | 4,524,044 | ||||||
345,621 | Mondelez International, Inc., Class A | 14,847,878 | ||||||
257,239 | PepsiCo, Inc. | 26,485,327 | ||||||
494,318 | Procter & Gamble Co. (The) | 39,604,758 | ||||||
200,146 | Reynolds American, Inc. | 9,927,242 | ||||||
65,498 | Whole Foods Market, Inc. | 1,904,682 | ||||||
|
| |||||||
147,573,309 | ||||||||
|
| |||||||
Energy—0.5% | ||||||||
48,379 | FMC Technologies, Inc.(b) | 1,475,076 | ||||||
78,423 | National Oilwell Varco, Inc. | 2,826,365 | ||||||
|
| |||||||
4,301,441 | ||||||||
|
| |||||||
Financials—2.6% | ||||||||
285,236 | Charles Schwab Corp. (The) | 8,103,555 | ||||||
87,585 | Franklin Resources, Inc. | 3,270,424 | ||||||
29,141 | Public Storage REIT | 7,134,008 | ||||||
103,778 | Weyerhaeuser Co. REIT | 3,333,349 | ||||||
59,846 | XL Group PLC | 1,958,760 | ||||||
|
| |||||||
23,800,096 | ||||||||
|
| |||||||
Health Care—19.3% | ||||||||
284,114 | Abbott Laboratories | 11,052,035 | ||||||
320,581 | AbbVie, Inc. | 19,555,441 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Health Care (continued) | ||||||||
39,480 | Biogen, Inc.(b) | $ | 10,856,605 | |||||
316,751 | Bristol-Myers Squibb Co. | 22,863,087 | ||||||
57,409 | Cardinal Health, Inc. | 4,504,310 | ||||||
57,840 | Cerner Corp.(b) | 3,247,138 | ||||||
27,952 | Dentsply Sirona, Inc. | 1,665,939 | ||||||
434,911 | Gilead Sciences, Inc. | 38,363,499 | ||||||
6,835 | Intuitive Surgical, Inc.(b) | 4,281,171 | ||||||
434,062 | Johnson & Johnson | 48,649,669 | ||||||
48,220 | McKesson Corp. | 8,092,280 | ||||||
|
| |||||||
173,131,174 | ||||||||
|
| |||||||
Industrials—19.8% | ||||||||
155,186 | 3M Co. | 25,975,033 | ||||||
193,563 | Boeing Co. (The) | 26,092,292 | ||||||
17,030 | Cintas Corp. | 1,528,953 | ||||||
169,070 | Delta Air Lines, Inc. | 7,045,147 | ||||||
34,607 | Dover Corp. | 2,273,680 | ||||||
145,540 | Emerson Electric Co. | 7,950,850 | ||||||
54,788 | Fastenal Co. | 2,563,531 | ||||||
27,049 | Flowserve Corp. | 1,320,262 | ||||||
71,725 | General Dynamics Corp. | 10,078,797 | ||||||
151,954 | Honeywell International, Inc. | 17,363,784 | ||||||
72,596 | Illinois Tool Works, Inc. | 7,587,734 | ||||||
79,810 | Lockheed Martin Corp. | 18,546,248 | ||||||
43,048 | Northrop Grumman Corp. | 8,879,080 | ||||||
36,440 | Pentair PLC (United Kingdom) | 2,116,435 | ||||||
44,691 | Pitney Bowes, Inc. | 937,170 | ||||||
57,646 | Raytheon Co. | 7,283,572 | ||||||
31,021 | Robert Half International, Inc. | 1,188,415 | ||||||
32,787 | Rockwell Automation, Inc. | 3,720,341 | ||||||
143,681 | Southwest Airlines Co. | 6,409,609 | ||||||
153,385 | United Parcel Service, Inc., Class B | 16,116,162 | ||||||
12,166 | W.W. Grainger, Inc. | 2,853,170 | ||||||
|
| |||||||
177,830,265 | ||||||||
|
| |||||||
Information Technology—17.1% | ||||||||
233,251 | Applied Materials, Inc. | 4,774,648 | ||||||
128,726 | Automatic Data Processing, Inc. | 11,384,528 | ||||||
34,332 | CSRA, Inc. | 891,259 | ||||||
220,247 | eBay, Inc.(b) | 5,380,634 | ||||||
18,532 | F5 Networks, Inc.(b) | 1,941,227 | ||||||
390,168 | HP, Inc. | 4,787,361 | ||||||
247,047 | International Business Machines Corp. | 36,054,039 | ||||||
69,052 | Intuit, Inc. | 6,966,656 | ||||||
73,395 | Juniper Networks, Inc. | 1,717,443 | ||||||
30,239 | KLA-Tencor Corp. | 2,114,916 | ||||||
45,293 | Linear Technology Corp. | 2,014,633 | ||||||
299,860 | MasterCard, Inc., Class A | 29,083,421 | ||||||
77,316 | Paychex, Inc. | 4,029,710 | ||||||
211,362 | Texas Instruments, Inc. | 12,056,089 | ||||||
369,055 | Visa, Inc., Class A | 28,505,808 | ||||||
48,789 | Xilinx, Inc. | 2,101,830 | ||||||
|
| |||||||
153,804,202 | ||||||||
|
| |||||||
Materials—3.9% | ||||||||
18,727 | Avery Dennison Corp. | 1,359,767 | ||||||
163,818 | E.I. du Pont de Nemours & Co. | 10,797,244 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 40 |
|
PowerShares S&P 500® Quality Portfolio (SPHQ) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Materials (continued) | ||||||||
15,472 | International Flavors & Fragrances, Inc. | $ | 1,848,440 | |||||
88,501 | LyondellBasell Industries NV, Class A | 7,316,378 | ||||||
80,722 | Monsanto Co. | 7,562,037 | ||||||
22,764 | Sherwin-Williams Co. (The) | 6,540,325 | ||||||
|
| |||||||
35,424,191 | ||||||||
|
| |||||||
Total Investments (Cost $872,342,145)—100.0% | 899,037,158 | |||||||
Other assets less liabilities—0.0% | 40,732 | |||||||
|
| |||||||
Net Assets—100.0% | $ | 899,077,890 | ||||||
|
|
Investment Abbreviations:
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | Non-income producing security. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 41 |
|
Schedule of Investments(a)
PowerShares Water Resources Portfolio (PHO)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks—99.9% | ||||||||
Building Products—2.9% | ||||||||
849,908 | Advanced Drainage Systems, Inc. | $ | 19,649,873 | |||||
|
| |||||||
Chemicals—9.4% | ||||||||
620,262 | Calgon Carbon Corp. | 10,166,094 | ||||||
469,864 | Ecolab, Inc. | 54,024,963 | ||||||
|
| |||||||
64,191,057 | ||||||||
|
| |||||||
Commercial Services & Supplies—2.5% | ||||||||
588,984 | Tetra Tech, Inc. | 17,316,130 | ||||||
|
| |||||||
Construction & Engineering—6.3% | ||||||||
426,127 | Aegion Corp.(b) | 9,046,676 | ||||||
287,647 | Layne Christensen Co.(b) | 2,557,182 | ||||||
145,829 | Northwest Pipe Co.(b) | 1,573,495 | ||||||
213,110 | Valmont Industries, Inc. | 29,916,382 | ||||||
|
| |||||||
43,093,735 | ||||||||
|
| |||||||
Electronic Equipment, Instruments & Components—4.5% | ||||||||
152,909 | Badger Meter, Inc. | 10,906,999 | ||||||
486,021 | Itron, Inc.(b) | 19,985,183 | ||||||
|
| |||||||
30,892,182 | ||||||||
|
| |||||||
Independent Power & Renewable Electricity Producers—8.3% | ||||||||
1,418,855 | Pattern Energy Group, Inc. | 29,795,955 | ||||||
2,499,187 | TerraForm Power, Inc., Class A(b) | 26,691,317 | ||||||
|
| |||||||
56,487,272 | ||||||||
|
| |||||||
Industrial Conglomerates—7.4% | ||||||||
286,933 | Roper Technologies, Inc. | 50,526,032 | ||||||
|
| |||||||
Life Sciences Tools & Services—7.7% | ||||||||
400,504 | Waters Corp.(b) | 52,129,601 | ||||||
|
| |||||||
Machinery—29.2% | ||||||||
645,096 | Energy Recovery, Inc.(b) | 7,844,367 | ||||||
464,316 | Franklin Electric Co., Inc. | 14,667,742 | ||||||
81,524 | Gorman-Rupp Co. (The) | 2,306,314 | ||||||
260,280 | Lindsay Corp. | 19,901,009 | ||||||
2,365,477 | Mueller Water Products, Inc., Class A | 25,428,878 | ||||||
1,009,940 | Pentair PLC (United Kingdom) | 58,657,315 | ||||||
302,288 | Toro Co. (The) | 26,132,798 | ||||||
303,049 | Watts Water Technologies, Inc., Class A | 16,931,348 | ||||||
644,004 | Xylem, Inc. | 26,906,487 | ||||||
|
| |||||||
198,776,258 | ||||||||
|
| |||||||
Trading Companies & Distributors—4.4% | ||||||||
866,932 | HD Supply Holdings, Inc.(b) | 29,718,429 | ||||||
|
| |||||||
Water Utilities—17.3% | ||||||||
383,543 | American States Water Co. | 15,989,908 | ||||||
743,358 | American Water Works Co., Inc. | 54,086,728 | ||||||
788,095 | Aqua America, Inc. | 24,951,088 | ||||||
250,454 | Cadiz, Inc.(b) | 1,625,446 | ||||||
447,626 | California Water Service Group | 12,502,194 | ||||||
69,525 | Connecticut Water Service, Inc. | 3,269,065 | ||||||
167,970 | Consolidated Water Co. Ltd. (Cayman Islands) | 2,333,103 | ||||||
77,620 | Middlesex Water Co. | 2,839,340 | ||||||
|
| |||||||
117,596,872 | ||||||||
|
| |||||||
Total Common Stocks (Cost $551,660,731) | 680,377,441 | |||||||
|
| |||||||
Number of Shares | Value | |||||||
Money Market Fund—0.1% | ||||||||
350,128 | Invesco Premier Portfolio—Institutional Class, 0.39%(c) (Cost $350,128) | $ | 350,128 | |||||
|
| |||||||
Total Investments (Cost $552,010,859)—100.0% | 680,727,569 | |||||||
Other assets less liabilities—(0.0)% | (264,861 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 680,462,708 | ||||||
|
|
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 42 |
|
Schedule of Investments(a)
PowerShares WilderHill Clean Energy Portfolio (PBW)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.0% | ||||||||
Aerospace & Defense—3.3% | ||||||||
74,117 | Hexcel Corp. | $ | 3,355,277 | |||||
|
| |||||||
Auto Components—2.5% | ||||||||
69,908 | Gentherm, Inc.(b) | 2,568,420 | ||||||
|
| |||||||
Automobiles—3.8% | ||||||||
15,716 | Tesla Motors, Inc.(b)(c) | 3,783,784 | ||||||
|
| |||||||
Chemicals—2.7% | ||||||||
18,517 | Air Products & Chemicals, Inc. | 2,701,445 | ||||||
|
| |||||||
Construction & Engineering—5.6% | ||||||||
592,440 | Ameresco, Inc., Class A(b) | 2,648,207 | ||||||
127,937 | Quanta Services, Inc.(b) | 3,034,665 | ||||||
|
| |||||||
5,682,872 | ||||||||
|
| |||||||
Electric Utilities—2.9% | ||||||||
67,048 | ITC Holdings Corp. | 2,954,805 | ||||||
|
| |||||||
Electrical Equipment—19.4% | ||||||||
2,088,395 | Ballard Power Systems, Inc. (Canada)(b)(c) | 3,341,432 | ||||||
1,370,695 | China Ming Yang Wind Power Group Ltd. ADR (China)(b)(c) | 3,289,668 | ||||||
67,530 | Energy Focus, Inc.(b)(c) | 526,734 | ||||||
221,116 | Enphase Energy, Inc.(b)(c) | 555,001 | ||||||
65,323 | Hydrogenics Corp. (Canada)(b)(c) | 616,649 | ||||||
1,435,102 | Plug Power, Inc.(b)(c) | 2,956,310 | ||||||
156,443 | SolarCity Corp.(b)(c) | 4,743,352 | ||||||
458,341 | Sunrun, Inc.(b)(c) | 3,611,727 | ||||||
|
| |||||||
19,640,873 | ||||||||
|
| |||||||
Electronic Equipment, Instruments & Components—6.6% | ||||||||
69,852 | Itron, Inc.(b) | 2,872,314 | ||||||
84,843 | Maxwell Technologies, Inc.(b) | 544,692 | ||||||
55,805 | Universal Display Corp.(b) | 3,253,990 | ||||||
|
| |||||||
6,670,996 | ||||||||
|
| |||||||
Independent Power & Renewable Electricity Producers—14.0% | ||||||||
81,128 | Ormat Technologies, Inc. | 3,520,955 | ||||||
157,485 | Pattern Energy Group, Inc. | 3,307,185 | ||||||
216,330 | Sky Solar Holdings Ltd. ADR (Hong Kong)(b)(c) | 672,786 | ||||||
1,069,744 | TerraForm Global, Inc., Class A(c) | 3,112,955 | ||||||
335,064 | TerraForm Power, Inc., Class A(b)(c) | 3,578,484 | ||||||
|
| |||||||
14,192,365 | ||||||||
|
| |||||||
Internet Software & Services—3.5% | ||||||||
449,854 | OPOWER,Inc.(b)(c) | 3,553,847 | ||||||
|
| |||||||
Oil, Gas & Consumable Fuels—5.2% | ||||||||
2,317,557 | Amyris, Inc.(b)(c) | 2,363,908 | ||||||
301,833 | Renewable Energy Group, Inc.(b) | 2,933,817 | ||||||
|
| |||||||
5,297,725 | ||||||||
|
| |||||||
Semiconductors & Semiconductor Equipment—27.0% | ||||||||
84,139 | Advanced Energy Industries, Inc.(b) | 2,721,897 | ||||||
174,625 | Canadian Solar, Inc. (Canada)(b)(c) | 3,127,534 | ||||||
98,570 | Cree, Inc.(b) | 2,415,951 | ||||||
28,409 | Daqo New Energy Corp. ADR (China)(b) | 737,214 | ||||||
48,014 | First Solar, Inc.(b) | 2,681,102 | ||||||
205,776 | Hanwha Q CELLS Co. Ltd. ADR (South Korea)(b) | 2,646,279 | ||||||
375,253 | JA Solar Holdings Co. Ltd. ADR (China)(b)(c) | 3,253,443 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Semiconductors & Semiconductor Equipment (continued) | ||||||||
349,456 | ReneSola Ltd. ADR (China)(b) | $ | 482,249 | |||||
116,166 | SolarEdge Technologies, Inc.(b)(c) | 3,112,087 | ||||||
149,792 | SunPower Corp.(b)(c) | 3,016,811 | ||||||
317,131 | Trina Solar Ltd. ADR (China)(b) | 3,092,027 | ||||||
|
| |||||||
27,286,594 | ||||||||
|
| |||||||
Software—3.5% | ||||||||
70,782 | EnerNOC, Inc.(b) | 482,733 | ||||||
218,847 | Silver Spring Networks, Inc.(b) | 3,074,801 | ||||||
|
| |||||||
3,557,534 | ||||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $106,747,646)—100.0% | 101,246,537 | |||||||
|
| |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—26.7% | ||||||||
27,046,765 | Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(d)(e) (Cost $27,046,765) | 27,046,765 | ||||||
|
| |||||||
Total Investments (Cost $133,794,411)—126.7% | 128,293,302 | |||||||
Other assets less liabilities—(26.7)% | (27,038,215 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 101,255,087 | ||||||
|
|
Investment Abbreviations:
ADR—American Depositary Receipt
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | Non-income producing security. |
(c) | All or a portion of this security was out on loan at April 30, 2016. |
(d) | The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
(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 2J. |
This Fund has holdings greater than 10% of net assets in the following country:
China | 10.7 | % |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 43 |
|
Schedule of Investments(a)
PowerShares WilderHill Progressive Energy Portfolio (PUW)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.0% | ||||||||
Auto Components—5.8% | ||||||||
14,269 | Johnson Controls, Inc. | $ | 590,737 | |||||
14,868 | Kandi Technologies Group, Inc. (China)(b)(c) | 106,901 | ||||||
12,555 | Tenneco, Inc.(c) | 669,181 | ||||||
|
| |||||||
1,366,819 | ||||||||
|
| |||||||
Automobiles—2.9% | ||||||||
22,788 | Tata Motors Ltd. ADR (India)(c) | 692,299 | ||||||
|
| |||||||
Building Products—6.8% | ||||||||
7,176 | A.O. Smith Corp. | 554,131 | ||||||
12,400 | Apogee Enterprises, Inc. | 513,856 | ||||||
11,638 | Owens Corning | 536,162 | ||||||
|
| |||||||
1,604,149 | ||||||||
|
| |||||||
Chemicals—2.6% | ||||||||
17,765 | Methanex Corp. (Canada) | 621,064 | ||||||
|
| |||||||
Commercial Services & Supplies—2.2% | ||||||||
31,653 | Covanta Holding Corp. | 514,678 | ||||||
|
| |||||||
Construction & Engineering—4.9% | ||||||||
13,966 | Chicago Bridge & Iron Co. NV | 562,131 | ||||||
25,833 | MasTec, Inc.(c) | 585,376 | ||||||
|
| |||||||
1,147,507 | ||||||||
|
| |||||||
Electric Utilities—2.2% | ||||||||
265,446 | Cia Energetica de Minas Gerais ADR (Brazil)(b) | 520,274 | ||||||
|
| |||||||
Electrical Equipment—15.1% | ||||||||
2,453 | Acuity Brands, Inc. | 598,262 | ||||||
8,699 | Eaton Corp. PLC | 550,386 | ||||||
9,784 | Emerson Electric Co. | 534,500 | ||||||
9,391 | EnerSys | 548,153 | ||||||
47,911 | General Cable Corp. | 749,328 | ||||||
8,667 | Regal Beloit Corp. | 558,328 | ||||||
|
| |||||||
3,538,957 | ||||||||
|
| |||||||
Electronic Equipment, Instruments & Components—2.5% | ||||||||
31,153 | Corning, Inc. | 581,627 | ||||||
|
| |||||||
Energy Equipment & Services—3.2% | ||||||||
165,031 | McDermott International, Inc.(c) | 749,241 | ||||||
|
| |||||||
Food & Staples Retailing—2.8% | ||||||||
19,760 | Andersons, Inc. (The) | 662,158 | ||||||
|
| |||||||
Independent Power & Renewable Electricity Producers—5.5% | ||||||||
39,146 | Calpine Corp.(c) | 617,724 | ||||||
41,662 | NRG Yield, Inc., Class C(b) | 674,091 | ||||||
|
| |||||||
1,291,815 | ||||||||
|
| |||||||
Industrial Conglomerates—2.3% | ||||||||
19,328 | Koninklijke Philips NV (Netherlands) | 531,713 | ||||||
|
| |||||||
Machinery—12.7% | ||||||||
19,514 | Altra Industrial Motion Corp. | 560,052 | ||||||
25,161 | Chart Industries, Inc.(c) | 647,644 | ||||||
13,761 | ESCO Technologies, Inc. | 529,523 | ||||||
10,128 | Luxfer Holdings PLC ADR (United Kingdom) | 130,145 | ||||||
5,032 | WABCO Holdings, Inc.(c) | 564,389 | ||||||
10,295 | Woodward, Inc. | 558,092 | ||||||
|
| |||||||
2,989,845 | ||||||||
|
|
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Oil, Gas & Consumable Fuels—23.7% | ||||||||
140,998 | Chesapeake Energy Corp. | $ | 968,656 | |||||
35,917 | Clean Energy Fuels Corp.(b)(c) | 102,723 | ||||||
132,950 | Cosan Ltd., Class A (Brazil) | 715,271 | ||||||
28,021 | Golar LNG Ltd. (Bermuda)(b) | 464,588 | ||||||
39,995 | Green Plains, Inc. | 723,910 | ||||||
18,676 | Range Resources Corp. | 823,798 | ||||||
21,258 | Sasol Ltd. ADR (South Africa) | 697,050 | ||||||
79,228 | Southwestern Energy Co.(b)(c) | 1,064,032 | ||||||
|
| |||||||
5,560,028 | ||||||||
|
| |||||||
Real Estate Investment Trusts—2.5% | ||||||||
29,716 | Hannon Armstrong Sustainable Infrastructure Capital, Inc. REIT | 576,490 | ||||||
|
| |||||||
Semiconductors & Semiconductor Equipment—2.3% | ||||||||
29,830 | Veeco Instruments, Inc.(c) | 549,170 | ||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $22,208,447) | 23,497,834 | |||||||
|
| |||||||
Money Market Fund—0.1% | ||||||||
11,982 | Invesco Premier Portfolio—Institutional Class, 0.39%(d) (Cost $11,982) | 11,982 | ||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $22,220,429)—100.1% | 23,509,816 | |||||||
|
| |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—7.2% | ||||||||
1,699,462 | Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(d)(e) (Cost $1,699,462) | 1,699,462 | ||||||
|
| |||||||
Total Investments (Cost $23,919,891)—107.3% | 25,209,278 | |||||||
Other assets less liabilities—(7.3)% | (1,722,222 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 23,487,056 | ||||||
|
|
Investment Abbreviations:
ADR—American Depositary Receipt
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | All or a portion of this security was out on loan at April 30, 2016. |
(c) | Non-income producing security. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 44 |
|
PowerShares WilderHill Progressive Energy Portfolio (PUW) (continued)
April 30, 2016
(d) | The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
(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 2J. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 45 |
|
Statements of Assets and Liabilities
April 30, 2016
PowerShares Aerospace & Defense Portfolio (PPA) | PowerShares Cleantech™ Portfolio (PZD) | PowerShares DWA Momentum Portfolio (PDP) | PowerShares Global Listed Private Equity Portfolio (PSP) | |||||||||||||
Assets: | ||||||||||||||||
Unaffiliated investments, at value(a) | $ | 298,665,181 | $ | 71,249,825 | $ | 1,438,088,012 | $ | 290,890,032 | ||||||||
Affiliated investments, at value | 101,580 | 3,150,893 | 895,085 | 70,988,650 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total investments, at value | 298,766,761 | 74,400,718 | 1,438,983,097 | 361,878,682 | ||||||||||||
Foreign currencies, at value | — | — | — | 9,898 | ||||||||||||
Receivables: | ||||||||||||||||
Investments sold | 1,849,114 | — | 8,104,546 | 1,971,195 | ||||||||||||
Dividends | 216,210 | 64,207 | 380,677 | 484,966 | ||||||||||||
Foreign tax reclaims | — | 96,373 | 10,433 | 885,666 | ||||||||||||
Securities lending | — | 10,053 | — | 71,206 | ||||||||||||
Settlement proceeds | — | 122,752 | — | 220,946 | ||||||||||||
Unrealized appreciation on swap agreements | — | — | — | 87 | ||||||||||||
Other assets | 2,947 | 2,942 | 5,553 | 4,609 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Assets | 300,835,032 | 74,697,045 | 1,447,484,306 | 365,527,255 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Liabilities: | ||||||||||||||||
Due to custodian | — | — | — | — | ||||||||||||
Payables: | ||||||||||||||||
Shares repurchased | 1,849,530 | — | 8,101,417 | — | ||||||||||||
Collateral upon return of securities loaned | — | 3,145,606 | — | 37,861,974 | ||||||||||||
Investments purchased | — | — | — | 151,624 | ||||||||||||
Payable for swaps | — | — | — | 2,617 | ||||||||||||
Unrealized depreciation on swap agreements | — | — | — | 1,226,483 | ||||||||||||
Open written options, at value | — | — | — | — | ||||||||||||
Accrued advisory fees | 121,127 | 19,200 | 605,349 | 130,346 | ||||||||||||
Accrued trustees’ and officer’s fees | 23,114 | 20,452 | 54,868 | 32,583 | ||||||||||||
Accrued expenses | 106,475 | 45,912 | 700,219 | 197,099 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Liabilities | 2,100,246 | 3,231,170 | 9,461,853 | 39,602,726 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets | $ | 298,734,786 | $ | 71,465,875 | $ | 1,438,022,453 | $ | 325,924,529 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets Consist of: | ||||||||||||||||
Shares of beneficial interest | $ | 311,416,487 | $ | 139,995,707 | $ | 1,711,051,055 | $ | 470,888,842 | ||||||||
Undistributed net investment income | 354,278 | 182,053 | 1,885,622 | (11,297,899 | ) | |||||||||||
Undistributed net realized gain (loss) | (31,809,420 | ) | (82,483,786 | ) | (392,626,613 | ) | (107,331,377 | ) | ||||||||
Net unrealized appreciation (depreciation) | 18,773,441 | 13,771,901 | 117,712,389 | (26,335,037 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets | $ | 298,734,786 | $ | 71,465,875 | $ | 1,438,022,453 | $ | 325,924,529 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shares outstanding (unlimited amount authorized, $0.01 par value) | 8,200,000 | 2,350,000 | 35,500,000 | 31,200,000 | ||||||||||||
Net asset value | $ | 36.43 | $ | 30.41 | $ | 40.51 | $ | 10.45 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Market price | $ | 36.42 | $ | 30.29 | $ | 40.50 | $ | 10.39 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Unaffiliated investments, at cost | $ | 279,891,740 | $ | 57,477,869 | $ | 1,320,375,623 | $ | 315,975,424 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Affiliated investments, at cost | $ | 101,580 | $ | 3,150,893 | $ | 895,085 | $ | 70,988,650 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total investments, at cost | $ | 279,993,320 | $ | 60,628,762 | $ | 1,321,270,708 | $ | 386,964,074 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Foreign currencies, at cost | $ | — | $ | — | $ | — | $ | 9,913 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Premium received on written options | $ | — | $ | — | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
(a) Includes securities on loan with an aggregate value of | $ | — | $ | 3,036,126 | $ | — | $ | 36,380,719 | ||||||||
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 46 |
|
PowerShares Golden Dragon China Portfolio (PGJ) | PowerShares S&P 500 BuyWrite Portfolio (PBP) | PowerShares S&P 500® Quality Portfolio (SPHQ) | PowerShares Water Resources Portfolio (PHO) | PowerShares WilderHill Clean Energy Portfolio (PBW) | PowerShares WilderHill Progressive Energy Portfolio (PUW) | |||||||||||||||||
$ | 163,312,552 | $ | 299,878,183 | $ | 899,037,158 | $ | 680,377,441 | $ | 101,246,537 | $ | 23,497,834 | |||||||||||
22,195,954 | 214,744 | — | 350,128 | 27,046,765 | 1,711,444 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
185,508,506 | 300,092,927 | 899,037,158 | 680,727,569 | 128,293,302 | 25,209,278 | |||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||
8,600 | 323,081 | 1,037,043 | 345,715 | 17,099 | 15,283 | |||||||||||||||||
— | — | — | — | 32,697 | 18,538 | |||||||||||||||||
56,521 | — | — | — | 345,593 | 4,221 | |||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||
2,977 | — | 3,258 | 4,609 | 4,609 | 3,333 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
185,576,604 | 300,416,008 | 900,077,459 | 681,077,893 | 128,693,300 | 25,250,653 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
— | 234,694 | 585,305 | — | 111,271 | — | |||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||
22,035,328 | — | — | — | 27,046,765 | 1,699,462 | |||||||||||||||||
— | — | — | — | 121,788 | — | |||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||
— | 2,098,140 | — | — | — | — | |||||||||||||||||
70,303 | 188,006 | 131,664 | 270,998 | 5,792 | 2,565 | |||||||||||||||||
34,928 | — | 27,460 | 90,075 | 46,706 | 16,907 | |||||||||||||||||
187,811 | — | 255,140 | 254,112 | 105,891 | 44,663 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
22,328,370 | 2,520,840 | 999,569 | 615,185 | 27,438,213 | 1,763,597 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 163,248,234 | $ | 297,895,168 | $ | 899,077,890 | $ | 680,462,708 | $ | 101,255,087 | $ | 23,487,056 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 468,665,900 | $ | 305,161,484 | $ | 971,528,723 | $ | 1,226,968,068 | $ | 1,493,610,524 | $ | 63,949,002 | |||||||||||
(204,010 | ) | 807,310 | 1,892,733 | 325,612 | 246,275 | 47,436 | ||||||||||||||||
(307,502,363 | ) | (16,445,666 | ) | (101,038,579 | ) | (675,547,682 | ) | (1,387,100,603 | ) | (41,798,769 | ) | |||||||||||
2,288,707 | 8,372,040 | 26,695,013 | 128,716,710 | (5,501,109 | ) | 1,289,387 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 163,248,234 | $ | 297,895,168 | $ | 899,077,890 | $ | 680,462,708 | $ | 101,255,087 | $ | 23,487,056 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
5,350,000 | 14,650,000 | 36,400,000 | 29,600,000 | 24,650,000 | 1,050,000 | |||||||||||||||||
$ | 30.51 | $ | 20.33 | $ | 24.70 | $ | 22.99 | $ | 4.11 | $ | 22.37 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 30.49 | $ | 20.29 | $ | 24.70 | $ | 22.98 | $ | 4.11 | $ | 22.36 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 161,023,845 | $ | 293,098,501 | $ | 872,342,145 | $ | 551,660,731 | $ | 106,747,646 | $ | 22,208,447 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 22,195,954 | $ | 253,644 | $ | — | $ | 350,128 | $ | 27,046,765 | $ | 1,711,444 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 183,219,799 | $ | 293,352,145 | $ | 872,342,145 | $ | 552,010,859 | $ | 133,794,411 | $ | 23,919,891 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | — | $ | 3,729,398 | $ | — | $ | — | $ | — | $ | — | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 21,214,487 | $ | — | $ | — | $ | — | $ | 24,580,037 | $ | 1,629,286 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| 47 |
|
For the year ended April 30, 2016
PowerShares Aerospace & Defense Portfolio (PPA) | PowerShares Cleantech™ Portfolio (PZD) | PowerShares DWA Momentum Portfolio (PDP) | PowerShares Global Listed Private Equity Portfolio (PSP) | |||||||||||||
Investment Income: | ||||||||||||||||
Unaffiliated dividend income | $ | 5,755,567 | $ | 989,066 | $ | 16,663,790 | $ | 25,325,477 | ||||||||
Affiliated dividend income | 1,373 | 81 | 2,269 | 66,569 | ||||||||||||
Securities lending income | — | 123,876 | — | 547,589 | ||||||||||||
Foreign withholding tax | — | (85,419 | ) | — | (458,748 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Income | 5,756,940 | 1,027,604 | 16,666,059 | 25,480,887 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Expenses: | ||||||||||||||||
Advisory fees | 1,343,216 | 357,786 | 8,982,393 | 2,068,668 | ||||||||||||
Sub-licensing fees | 161,184 | 53,668 | 1,796,478 | 413,733 | ||||||||||||
Recapture (Note 3) | 59,650 | — | — | — | ||||||||||||
Accounting & administration fees | 53,155 | 34,843 | 349,873 | 71,894 | ||||||||||||
Professional fees | 28,944 | 36,255 | 50,232 | 40,153 | ||||||||||||
Trustees’ and officer’s fees | 12,541 | 8,948 | 43,395 | 15,604 | ||||||||||||
Custodian & transfer agent fees | 5,616 | 10,426 | 24,007 | 40,229 | ||||||||||||
Other expenses | 55,696 | 23,427 | 170,356 | 88,012 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Expenses | 1,720,002 | 525,353 | 11,416,734 | 2,738,293 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Less: Waivers | (865 | ) | (42,428 | ) | (2,077 | ) | (71,625 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net Expenses | 1,719,137 | 482,925 | 11,414,657 | 2,666,668 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Investment Income | 4,037,803 | 544,679 | 5,251,402 | 22,814,219 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Realized and Unrealized Gain (Loss): | ||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||
Investment securities | (4,197,179 | ) | 489,142 | (147,914,272 | ) | (8,836,631 | ) | |||||||||
In-kind redemptions | 18,248,496 | 1,408,642 | 159,582,237 | 18,348,385 | ||||||||||||
Swap agreements | — | — | — | (14,567,140 | ) | |||||||||||
Written options | — | — | — | — | ||||||||||||
Foreign currencies | — | 1,844 | — | (87,668 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized gain (loss) | 14,051,317 | 1,899,628 | 11,667,965 | (5,143,054 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net unrealized appreciation (depreciation) on: | ||||||||||||||||
Investment securities | (10,888,996 | ) | (2,564,753 | ) | (151,181,845 | ) | (59,459,267 | ) | ||||||||
Swap agreements | — | — | — | (685,203 | ) | |||||||||||
Written options | — | — | — | — | ||||||||||||
Foreign currencies | — | 4,261 | — | 12,189 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net change in unrealized appreciation (depreciation) | (10,888,996 | ) | (2,560,492 | ) | (151,181,845 | ) | (60,132,281 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net realized and unrealized gain (loss) | 3,162,321 | (660,864 | ) | (139,513,880 | ) | (65,275,335 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | $ | 7,200,124 | $ | (116,185 | ) | $ | (134,262,478 | ) | $ | (42,461,116 | ) | |||||
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 48 |
|
PowerShares | PowerShares S&P 500 BuyWrite Portfolio (PBP) | PowerShares S&P 500® Quality Portfolio (SPHQ) | PowerShares Water Resources Portfolio (PHO) | PowerShares WilderHill Clean Energy Portfolio (PBW) | PowerShares WilderHill Progressive Energy Portfolio (PUW) | |||||||||||||||||
$ | 1,099,980 | $ | 7,288,540 | $ | 13,369,326 | $ | 8,561,838 | $ | 408,651 | $ | 341,160 | |||||||||||
381 | 9,458 | 836 | 892 | 221 | 48 | |||||||||||||||||
547,032 | — | — | — | 3,038,066 | 173,130 | |||||||||||||||||
(62,012 | ) | (266 | ) | — | (85,924 | ) | — | (10,901 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
1,585,381 | 7,297,732 | 13,370,162 | 8,476,806 | 3,446,938 | 503,437 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
899,566 | 2,465,562 | 1,751,542 | 3,557,991 | 561,673 | 123,207 | |||||||||||||||||
179,912 | — | 280,521 | 533,701 | 112,334 | 24,641 | |||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||
31,492 | — | 113,226 | 123,877 | 34,796 | 34,935 | |||||||||||||||||
31,442 | — | 33,171 | 33,495 | 25,822 | 25,194 | |||||||||||||||||
11,081 | — | 17,804 | 21,339 | 9,806 | 8,106 | |||||||||||||||||
89,034 | — | 20,952 | 8,365 | 61,428 | 12,705 | |||||||||||||||||
25,667 | — | 57,895 | 80,758 | 43,317 | 15,511 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
1,268,194 | 2,465,562 | 2,275,111 | 4,359,526 | 849,176 | 244,299 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(9,142 | ) | (619 | ) | (524,503 | ) | (893 | ) | (63,048 | ) | (71,848 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
1,259,052 | 2,464,943 | 1,750,608 | 4,358,633 | 786,128 | 172,451 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
326,329 | 4,832,789 | 11,619,554 | 4,118,173 | 2,660,810 | 330,986 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(11,751,582 | ) | (5,658,381 | ) | (8,792,194 | ) | (120,105,992 | ) | (39,829,020 | ) | (6,165,787 | ) | |||||||||||
16,959,178 | 54,963,741 | 104,689,495 | 77,141,684 | 1,457,398 | 889,756 | |||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||
— | (558,883 | ) | — | — | — | — | ||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
5,207,596 | 48,746,477 | 95,897,301 | (42,964,308 | ) | (38,371,622 | ) | (5,276,031 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(28,892,998 | ) | (53,614,097 | ) | (44,054,301 | ) | (35,442,735 | ) | (2,472,953 | ) | (1,905,394 | ) | |||||||||||
— | — | — | — | — | — | |||||||||||||||||
— | 780,742 | — | — | — | — | |||||||||||||||||
— | — | — | — | — | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(28,892,998 | ) | (52,833,355 | ) | (44,054,301 | ) | (35,442,735 | ) | (2,472,953 | ) | (1,905,394 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(23,685,402 | ) | (4,086,878 | ) | 51,843,000 | (78,407,043 | ) | (40,844,575 | ) | (7,181,425 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | (23,359,073 | ) | $ | 745,911 | $ | 63,462,554 | $ | (74,288,870 | ) | $ | (38,183,765 | ) | $ | (6,850,439 | ) | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
| 49 |
|
Statements of Changes in Net Assets
For the years ended April 30, 2016 and 2015
PowerShares Aerospace & Defense Portfolio (PPA) | PowerShares Cleantech™ Portfolio (PZD) | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 4,037,803 | $ | 1,741,076 | $ | 544,679 | $ | 695,733 | ||||||||
Net realized gain (loss) | 14,051,317 | 5,418,419 | 1,899,628 | 4,185,001 | ||||||||||||
Net change in unrealized appreciation (depreciation) | (10,888,996 | ) | 12,880,679 | (2,560,492 | ) | (7,838,210 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | 7,200,124 | 20,040,174 | (116,185 | ) | (2,957,476 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions to Shareholders from: | ||||||||||||||||
Net investment income | (3,934,869 | ) | (1,474,100 | ) | (576,797 | ) | (635,362 | ) | ||||||||
Return of capital | — | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (3,934,869 | ) | (1,474,100 | ) | (576,797 | ) | (635,362 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shareholder Transactions: | ||||||||||||||||
Proceeds from shares sold | 110,857,357 | 163,593,010 | — | 4,394,744 | ||||||||||||
Value of shares repurchased | (78,000,522 | ) | (17,632,615 | ) | (4,353,113 | ) | (8,825,354 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from shares transactions | 32,856,835 | 145,960,395 | (4,353,113 | ) | (4,430,610 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Increase (Decrease) in Net Assets | 36,122,090 | 164,526,469 | (5,046,095 | ) | (8,023,448 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets: | ||||||||||||||||
Beginning of year | 262,612,696 | 98,086,227 | 76,511,970 | 84,535,418 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of year | $ | 298,734,786 | $ | 262,612,696 | $ | 71,465,875 | $ | 76,511,970 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income at end of year | $ | 354,278 | $ | 251,344 | $ | 182,053 | $ | 212,327 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Changes in Shares Outstanding: | ||||||||||||||||
Shares sold | 3,150,000 | 4,800,000 | — | 150,000 | ||||||||||||
Shares repurchased | (2,300,000 | ) | (500,000 | ) | (150,000 | ) | (300,000 | ) | ||||||||
Shares outstanding, beginning of year | 7,350,000 | 3,050,000 | 2,500,000 | 2,650,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Shares outstanding, end of year | 8,200,000 | 7,350,000 | 2,350,000 | 2,500,000 | ||||||||||||
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 50 |
|
PowerShares DWA Momentum Portfolio (PDP) | PowerShares Global Listed Private Equity Portfolio (PSP) | PowerShares Golden Dragon China Portfolio (PGJ) | ||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||
$ | 5,251,402 | $ | 5,843,484 | $ | 22,814,219 | $ | 16,776,727 | $ | 326,329 | $ | 1,678,779 | |||||||||||
11,667,965 | 142,930,976 | (5,143,054 | ) | 47,953,184 | 5,207,596 | 33,306,462 | ||||||||||||||||
(151,181,845 | ) | 44,967,654 | (60,132,281 | ) | (42,186,037 | ) | (28,892,998 | ) | 5,108,538 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(134,262,478 | ) | 193,742,114 | (42,461,116 | ) | 22,543,874 | (23,359,073 | ) | 40,093,779 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(5,095,535 | ) | (4,082,216 | ) | (22,461,093 | ) | (27,591,991 | ) | (604,271 | ) | (2,129,714 | ) | |||||||||||
— | — | — | — | (172,929 | ) | — | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(5,095,535 | ) | (4,082,216 | ) | (22,461,093 | ) | (27,591,991 | ) | (777,200 | ) | (2,129,714 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
825,218,576 | 1,257,742,866 | 27,886,163 | 134,129,178 | 31,179,637 | 79,503,122 | |||||||||||||||||
(1,119,618,364 | ) | (836,066,053 | ) | (113,645,852 | ) | (236,075,900 | ) | (74,425,765 | ) | (145,405,126 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(294,399,788 | ) | 421,676,813 | (85,759,689 | ) | (101,946,722 | ) | (43,246,128 | ) | (65,902,004 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(433,757,801 | ) | 611,336,711 | (150,681,898 | ) | (106,994,839 | ) | (67,382,401 | ) | (27,937,939 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
1,871,780,254 | 1,260,443,543 | 476,606,427 | 583,601,266 | 230,630,635 | 258,568,574 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 1,438,022,453 | $ | 1,871,780,254 | $ | 325,924,529 | $ | 476,606,427 | $ | 163,248,234 | $ | 230,630,635 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 1,885,622 | $ | 1,729,755 | $ | (11,297,899 | ) | $ | (8,610,255 | ) | $ | (204,010 | ) | $ | (241,593 | ) | |||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
19,600,000 | 30,900,000 | 2,400,000 | 11,400,000 | 950,000 | 2,500,000 | |||||||||||||||||
(28,200,000 | ) | (20,900,000 | ) | (11,100,000 | ) | (21,000,000 | ) | (2,450,000 | ) | (5,000,000 | ) | |||||||||||
44,100,000 | 34,100,000 | 39,900,000 | 49,500,000 | 6,850,000 | 9,350,000 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
35,500,000 | 44,100,000 | 31,200,000 | 39,900,000 | 5,350,000 | 6,850,000 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| 51 |
|
Statements of Changes in Net Assets (continued)
For the years ended April 30, 2016 and 2015
PowerShares S&P 500 BuyWrite Portfolio (PBP) | PowerShares S&P 500® Quality Portfolio (SPHQ) | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 4,832,789 | $ | 4,677,970 | $ | 11,619,554 | $ | 8,201,541 | ||||||||
Net realized gain (loss) | 48,746,477 | (1,191,009 | ) | 95,897,301 | 43,790,455 | |||||||||||
Net change in unrealized appreciation (depreciation) | (52,833,355 | ) | 9,732,702 | (44,054,301 | ) | (389,529 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | 745,911 | 13,219,663 | 63,462,554 | 51,602,467 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions to Shareholders from: | ||||||||||||||||
Net investment income | (5,351,930 | ) | (13,360,682 | ) | (10,888,763 | ) | (7,699,802 | ) | ||||||||
Net realized gains | (12,062,642 | ) | (3,220,888 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | (17,414,572 | ) | (16,581,570 | ) | (10,888,763 | ) | (7,699,802 | ) | ||||||||
|
| �� |
|
|
|
|
|
| ||||||||
Shareholder Transactions: | ||||||||||||||||
Proceeds from shares sold | 113,491,101 | 231,535,424 | 927,220,372 | 242,538,333 | ||||||||||||
Value of shares repurchased | (203,197,290 | ) | (73,361,924 | ) | (614,252,831 | ) | (118,590,643 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from shares transactions | (89,706,189 | ) | 158,173,500 | 312,967,541 | 123,947,690 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Increase (Decrease) in Net Assets | (106,374,850 | ) | 154,811,593 | 365,541,332 | 167,850,355 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets: | ||||||||||||||||
Beginning of year | 404,270,018 | 249,458,425 | 533,536,558 | 365,686,203 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of year | $ | 297,895,168 | $ | 404,270,018 | $ | 899,077,890 | $ | 533,536,558 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income at end of year | $ | 807,310 | $ | 863,901 | $ | 1,892,733 | $ | 1,161,942 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Changes in Shares Outstanding: | ||||||||||||||||
Shares sold | 5,400,000 | 10,900,000 | 39,250,000 | 10,650,000 | ||||||||||||
Shares repurchased | (9,800,000 | ) | (3,550,000 | ) | (25,800,000 | ) | (5,200,000 | ) | ||||||||
Shares outstanding, beginning of year | 19,050,000 | 11,700,000 | 22,950,000 | 17,500,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Shares outstanding, end of year | 14,650,000 | 19,050,000 | 36,400,000 | 22,950,000 | ||||||||||||
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 52 |
|
PowerShares Water Resources Portfolio (PHO) | PowerShares WilderHill Clean Energy Portfolio (PBW) | PowerShares WilderHill Progressive Energy Portfolio (PUW) | ||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||
$ | 4,118,173 | $ | 5,188,745 | $ | 2,660,810 | $ | 3,905,403 | $ | 330,986 | $ | 639,539 | |||||||||||
(42,964,308 | ) | 26,094,958 | (38,371,622 | ) | (10,857,926 | ) | (5,276,031 | ) | 643,328 | |||||||||||||
(35,442,735 | ) | (53,398,337 | ) | (2,472,953 | ) | (13,364,817 | ) | (1,905,394 | ) | (6,100,025 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(74,288,870 | ) | (22,114,634 | ) | (38,183,765 | ) | (20,317,340 | ) | (6,850,439 | ) | (4,817,158 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(5,414,109 | ) | (5,760,750 | ) | (2,346,665 | ) | (4,135,076 | ) | (367,721 | ) | (626,095 | ) | |||||||||||
— | — | — | — | — | — | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(5,414,109 | ) | (5,760,750 | ) | (2,346,665 | ) | (4,135,076 | ) | (367,721 | ) | (626,095 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
149,177,885 | 35,679,168 | 5,301,285 | 28,214,118 | — | 5,044,172 | |||||||||||||||||
(244,171,049 | ) | (142,892,020 | ) | (7,305,808 | ) | (78,072,886 | ) | (3,464,537 | ) | (11,250,272 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(94,993,164 | ) | (107,212,852 | ) | (2,004,523 | ) | (49,858,768 | ) | (3,464,537 | ) | (6,206,100 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(174,696,143 | ) | (135,088,236 | ) | (42,534,953 | ) | (74,311,184 | ) | (10,682,697 | ) | (11,649,353 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
855,158,851 | 990,247,087 | 143,790,040 | 218,101,224 | 34,169,753 | 45,819,106 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 680,462,708 | $ | 855,158,851 | $ | 101,255,087 | $ | 143,790,040 | $ | 23,487,056 | $ | 34,169,753 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 325,612 | $ | 1,621,548 | $ | 246,275 | $ | (127,786 | ) | $ | 47,436 | $ | 84,171 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
6,650,000 | 1,400,000 | 1,250,000 | 4,300,000 | — | 150,000 | |||||||||||||||||
(11,000,000 | ) | (5,650,000 | ) | (1,550,000 | ) | (12,450,000 | ) | (150,000 | ) | (350,000 | ) | |||||||||||
33,950,000 | 38,200,000 | 24,950,000 | 33,100,000 | 1,200,000 | 1,400,000 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
29,600,000 | 33,950,000 | 24,650,000 | 24,950,000 | 1,050,000 | 1,200,000 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| 53 |
|
PowerShares Aerospace & Defense Portfolio (PPA)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 35.73 | $ | 32.16 | $ | 23.22 | $ | 19.99 | $ | 20.57 | ||||||||||
Net investment income(a) | 0.53 | (b) | 0.32 | 0.33 | 0.44 | 0.21 | ||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.67 | 3.52 | 9.00 | 3.22 | (0.60 | ) | ||||||||||||||
Total from investment operations | 1.20 | 3.84 | 9.33 | 3.66 | (0.39 | ) | ||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.50 | ) | (0.27 | ) | (0.39 | ) | (0.43 | ) | (0.19 | ) | ||||||||||
Net asset value at end of year | $ | 36.43 | $ | 35.73 | $ | 32.16 | $ | 23.22 | $ | 19.99 | ||||||||||
Market price at end of year(c) | $ | 36.42 | $ | 35.71 | $ | 32.15 | $ | 23.20 | $ | 19.98 | ||||||||||
Net Asset Value Total Return(d) | 3.43 | % | 11.99 | % | 40.52 | % | 18.69 | % | (1.82 | )% | ||||||||||
Market Price Total Return(d) | 3.46 | % | 11.96 | % | 40.59 | % | 18.65 | % | (1.87 | )% | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 298,735 | $ | 262,613 | $ | 98,086 | $ | 47,607 | $ | 54,967 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.64 | % | 0.66 | % | 0.66 | % | 0.66 | % | 0.66 | % | ||||||||||
Expenses, prior to Waivers | 0.64 | % | 0.66 | % | 0.69 | % | 0.74 | % | 0.76 | % | ||||||||||
Net investment income, after Waivers | 1.50 | %(b) | 0.94 | % | 1.13 | % | 2.18 | % | 1.09 | % | ||||||||||
Portfolio turnover rate(e) | 16 | % | 13 | % | 8 | % | 17 | % | 25 | % |
(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 significant dividend received during the year. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividends are $0.33 and 0.93%, respectively. |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
PowerShares CleantechTM Portfolio (PZD)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 30.60 | $ | 31.90 | $ | 25.47 | $ | 23.06 | $ | 30.10 | ||||||||||
Net investment income(a) | 0.22 | 0.27 | 0.17 | 0.26 | 0.24 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.18 | ) | (1.33 | ) | 6.53 | 2.37 | (7.07 | ) | ||||||||||||
Total from investment operations | 0.04 | (1.06 | ) | 6.70 | 2.63 | (6.83 | ) | |||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.23 | ) | (0.24 | ) | (0.27 | ) | (0.22 | ) | (0.21 | ) | ||||||||||
Net asset value at end of year | $ | 30.41 | $ | 30.60 | $ | 31.90 | $ | 25.47 | $ | 23.06 | ||||||||||
Market price at end of year(b) | $ | 30.29 | $ | 30.54 | $ | 31.92 | $ | 25.36 | $ | 22.98 | ||||||||||
Net Asset Value Total Return(c) | 0.15 | % | (3.36 | )% | 26.52 | % | 11.59 | % | (22.65 | )% | ||||||||||
Market Price Total Return(c) | (0.05 | )% | (3.61 | )% | 27.15 | % | 11.50 | % | (22.87 | )% | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 71,466 | $ | 76,512 | $ | 84,535 | $ | 71,314 | $ | 100,305 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.67 | % | 0.67 | % | 0.67 | % | 0.67 | % | 0.67 | % | ||||||||||
Expenses, prior to Waivers | 0.73 | % | 0.72 | % | 0.72 | % | 0.76 | % | 0.74 | % | ||||||||||
Net investment income, after Waivers | 0.76 | % | 0.89 | % | 0.58 | % | 1.16 | % | 0.97 | % | ||||||||||
Portfolio turnover rate(d) | 25 | % | 22 | % | 24 | % | 22 | % | 27 | % |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 54 |
|
Financial Highlights (continued)
PowerShares DWA Momentum Portfolio (PDP)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 42.44 | $ | 36.96 | $ | 31.77 | $ | 27.86 | $ | 26.52 | ||||||||||
Net investment income(a) | 0.12 | 0.16 | 0.06 | 0.23 | 0.07 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (1.94 | ) | 5.43 | 5.23 | 3.92 | 1.31 | ||||||||||||||
Total from investment operations | (1.82 | ) | 5.59 | 5.29 | 4.15 | 1.38 | ||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.11 | ) | (0.11 | ) | (0.10 | ) | (0.24 | ) | (0.04 | ) | ||||||||||
Net asset value at end of year | $ | 40.51 | $ | 42.44 | $ | 36.96 | $ | 31.77 | $ | 27.86 | ||||||||||
Market price at end of year(b) | $ | 40.50 | $ | 42.43 | $ | 36.93 | $ | 31.76 | $ | 27.86 | ||||||||||
Net Asset Value Total Return(c) | (4.29 | )% | 15.13 | % | 16.71 | % | 15.02 | % | 5.22 | % | ||||||||||
Market Price Total Return(c) | (4.29 | )% | 15.19 | % | 16.65 | % | 14.98 | % | 5.15 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 1,438,022 | $ | 1,871,780 | $ | 1,260,444 | $ | 876,929 | $ | 571,078 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.64 | % | 0.63 | %(d) | 0.64 | %(d) | 0.67 | %(d) | 0.65 | % | ||||||||||
Expenses, prior to Waivers | 0.64 | % | 0.63 | %(d) | 0.64 | %(d) | 0.67 | %(d) | 0.65 | % | ||||||||||
Net investment income, after Waivers | 0.29 | % | 0.39 | % | 0.17 | % | 0.82 | % | 0.29 | % | ||||||||||
Portfolio turnover rate(e) | 100 | % | 73 | % | 75 | % | 66 | % | 96 | % |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 companies’ 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 investment companies the Fund invests in. The effect of the estimated investment companies’ expenses that the Fund bears indirectly is included in the Fund’s total return. |
(e) | Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 55 |
|
Financial Highlights (continued)
PowerShares Global Listed Private Equity Portfolio (PSP)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 11.95 | $ | 11.79 | $ | 11.70 | $ | 9.22 | $ | 12.17 | ||||||||||
Net investment income(a) | 0.60 | (b) | 0.35 | 0.38 | (c) | 0.24 | 0.26 | |||||||||||||
Net realized and unrealized gain (loss) on investments | (1.53 | ) | 0.41 | 1.38 | 2.64 | (2.58 | ) | |||||||||||||
Total from investment operations | (0.93 | ) | 0.76 | 1.76 | 2.88 | (2.32 | ) | |||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.57 | ) | (0.60 | ) | (1.67 | ) | (0.40 | ) | (0.56 | ) | ||||||||||
Return of capital | — | — | — | — | (0.07 | ) | ||||||||||||||
Total distributions | (0.57 | ) | (0.60 | ) | (1.67 | ) | (0.40 | ) | (0.63 | ) | ||||||||||
Net asset value at end of year | $ | 10.45 | $ | 11.95 | $ | 11.79 | $ | 11.70 | $ | 9.22 | ||||||||||
Market price at end of year(d) | $ | 10.39 | $ | 11.93 | $ | 11.85 | $ | 11.75 | $ | 9.25 | ||||||||||
Net Asset Value Total Return(e) | (8.09 | )% | 6.79 | % | 16.20 | % | 31.87 | % | (19.51 | )% | ||||||||||
Market Price Total Return(e) | (8.47 | )% | 6.09 | % | 16.31 | % | 32.00 | % | (19.80 | )% | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 325,925 | $ | 476,606 | $ | 583,601 | $ | 408,492 | $ | 296,744 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers(f) | 0.64 | % | 0.64 | % | 0.69 | % | 0.70 | % | 0.71 | % | ||||||||||
Expenses, prior to Waivers(f) | 0.66 | % | 0.66 | % | 0.70 | % | 0.70 | % | 0.76 | % | ||||||||||
Net investment income, after Waivers | 5.51 | %(b) | 3.04 | % | 3.20 | %(c) | 2.47 | % | 2.79 | % | ||||||||||
Portfolio turnover rate(g) | 35 | % | 30 | % | 53 | % | 53 | % | 88 | % |
(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 significant dividend received during the year. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividends are $0.34 and 3.12%, respectively. |
(c) | Net Investment income per share and the ratio of net investment income to average net assets include a significant dividend received during the year. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividends are $0.28 and 2.39%, respectively. |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market price on the last day of the period. Total investment returns calculated for a period of less than one year are not annualized. |
(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 companies’ 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 investment companies the Fund invests in. The effect of the estimated investment companies’ expenses that the Fund bears indirectly is included in the Fund’s total return. |
(g) | Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 56 |
|
Financial Highlights (continued)
PowerShares Golden Dragon China Portfolio (PGJ)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 33.67 | $ | 27.65 | $ | 19.65 | $ | 21.56 | $ | 28.98 | ||||||||||
Net investment income(a) | 0.06 | 0.21 | 0.21 | 0.34 | 0.48 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (3.10 | ) | 6.06 | 8.08 | (1.81 | ) | (7.43 | ) | ||||||||||||
Total from investment operations | (3.04 | ) | 6.27 | 8.29 | (1.47 | ) | (6.95 | ) | ||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.09 | ) | (0.25 | ) | (0.29 | ) | (0.44 | ) | (0.47 | ) | ||||||||||
Return of capital | (0.03 | ) | — | — | — | — | ||||||||||||||
Total distributions | (0.12 | ) | (0.25 | ) | (0.29 | ) | (0.44 | ) | (0.47 | ) | ||||||||||
Net asset value at end of year | $ | 30.51 | $ | 33.67 | $ | 27.65 | $ | 19.65 | $ | 21.56 | ||||||||||
Market price at end of year(b) | $ | 30.49 | $ | 33.62 | $ | 27.60 | $ | 19.59 | $ | 21.49 | ||||||||||
Net Asset Value Total Return(c) | (9.04 | )% | 22.79 | % | 42.28 | % | (6.73 | )%(d) | (23.98 | )% | ||||||||||
Market Price Total Return(c) | (8.97 | )% | 22.83 | % | 42.46 | % | (6.70 | )% | (23.93 | )% | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 163,248 | $ | 230,631 | $ | 258,569 | $ | 181,744 | $ | 245,838 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.70 | % | 0.70 | % | 0.70 | % | 0.70 | % | 0.69 | % | ||||||||||
Expenses, prior to Waivers | 0.70 | % | 0.70 | % | 0.70 | % | 0.75 | % | 0.71 | % | ||||||||||
Net investment income, after Waivers | 0.18 | % | 0.68 | % | 0.75 | % | 1.78 | % | 2.08 | % | ||||||||||
Portfolio turnover rate(e) | 47 | % | 25 | % | 37 | % | 63 | % | 23 | % |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 $0.004 per share. Had the pay-in not been made, the net asset value total return would have been (6.77)%. |
(e) | Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
PowerShares S&P 500 BuyWrite Portfolio (PBP)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 21.22 | $ | 21.32 | $ | 20.83 | $ | 20.60 | $ | 21.52 | ||||||||||
Net investment income(a) | 0.30 | 0.28 | 0.28 | 0.33 | 0.29 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.11 | ) | 0.65 | 1.57 | 0.70 | 1.00 | ||||||||||||||
Total from investment operations | 0.19 | 0.93 | 1.85 | 1.03 | 1.29 | |||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.34 | ) | (0.86 | ) | (1.35 | ) | (0.65 | ) | (2.10 | ) | ||||||||||
Net realized gains | (0.74 | ) | (0.17 | ) | (0.01 | ) | (0.15 | ) | (0.11 | ) | ||||||||||
Total distributions | (1.08 | ) | (1.03 | ) | (1.36 | ) | (0.80 | ) | (2.21 | ) | ||||||||||
Net asset value at end of year | $ | 20.33 | $ | 21.22 | $ | 21.32 | $ | 20.83 | $ | 20.60 | ||||||||||
Market price at end of year(b) | $ | 20.29 | $ | 21.22 | $ | 21.35 | $ | 20.83 | $ | 20.65 | ||||||||||
Net Asset Value Total Return(c) | 0.90 | % | 4.48 | % | 9.34 | % | 5.22 | % | 6.74 | % | ||||||||||
Market Price Total Return(c) | 0.67 | % | 4.32 | % | 9.50 | % | 4.97 | % | 7.02 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 297,895 | $ | 404,270 | $ | 249,458 | $ | 205,222 | $ | 154,528 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses | 0.75 | % | 0.75 | % | 0.75 | % | 0.75 | % | 0.75 | % | ||||||||||
Net investment income | 1.47 | % | 1.33 | % | 1.37 | % | 1.61 | % | 1.42 | % | ||||||||||
Portfolio turnover rate(d) | 43 | % | 50 | % | 32 | % | 22 | % | 58 | % |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 57 |
|
Financial Highlights (continued)
PowerShares S&P 500® Quality Portfolio (SPHQ)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 23.25 | $ | 20.90 | $ | 17.87 | $ | 15.33 | $ | 14.64 | ||||||||||
Net investment income(a) | 0.45 | 0.41 | 0.36 | 0.33 | 0.26 | |||||||||||||||
Net realized and unrealized gain on investments | 1.46 | 2.33 | 3.03 | 2.52 | 0.74 | |||||||||||||||
Total from investment operations | 1.91 | 2.74 | 3.39 | 2.85 | 1.00 | |||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.46 | ) | (0.39 | ) | (0.36 | ) | (0.31 | ) | (0.31 | ) | ||||||||||
Net asset value at end of year | $ | 24.70 | $ | 23.25 | $ | 20.90 | $ | 17.87 | $ | 15.33 | ||||||||||
Market price at end of year(b) | $ | 24.70 | $ | 23.24 | $ | 20.89 | $ | 17.87 | $ | 15.33 | ||||||||||
Net Asset Value Total Return(c) | 8.39 | % | 13.17 | % | 19.15 | % | 18.86 | % | 7.04 | % | ||||||||||
Market Price Total Return(c) | 8.43 | % | 13.18 | % | 19.09 | % | 18.86 | % | 7.04 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 899,078 | $ | 533,537 | $ | 365,686 | $ | 228,736 | $ | 146,421 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.29 | % | 0.29 | % | 0.29 | % | 0.39 | % | 0.50 | % | ||||||||||
Expenses, prior to Waivers | 0.38 | % | 0.38 | % | 0.39 | % | 0.55 | % | 0.70 | % | ||||||||||
Net investment income, after Waivers | 1.92 | % | 1.83 | % | 1.87 | % | 2.06 | % | 1.82 | % | ||||||||||
Portfolio turnover rate(d) | 102 | % | 18 | % | 13 | % | 17 | % | 14 | % |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the year ended April 30, 2016, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change. |
PowerShares Water Resources Portfolio (PHO)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 25.19 | $ | 25.92 | $ | 22.06 | $ | 18.78 | $ | 20.25 | ||||||||||
Net investment income(a) | 0.13 | 0.14 | 0.16 | 0.16 | 0.14 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (2.17 | ) | (0.72 | ) | 3.83 | 3.28 | (1.48 | ) | ||||||||||||
Total from investment operations | (2.04 | ) | (0.58 | ) | 3.99 | 3.44 | (1.34 | ) | ||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.16 | ) | (0.15 | ) | (0.13 | ) | (0.16 | ) | (0.13 | ) | ||||||||||
Net asset value at end of year | $ | 22.99 | $ | 25.19 | $ | 25.92 | $ | 22.06 | $ | 18.78 | ||||||||||
Market price at end of year(b) | $ | 22.98 | $ | 25.17 | $ | 25.91 | $ | 22.05 | $ | 18.77 | ||||||||||
Net Asset Value Total Return(c) | (8.09 | )% | (2.25 | )% | 18.16 | % | 18.48 | % | (6.59 | )% | ||||||||||
Market Price Total Return(c) | (8.06 | )% | (2.29 | )% | 18.17 | % | 18.49 | % | (6.59 | )% | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 680,463 | $ | 855,159 | $ | 990,247 | $ | 877,064 | $ | 825,510 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.61 | % | 0.61 | % | 0.61 | % | 0.62 | % | 0.62 | % | ||||||||||
Expenses, prior to Waivers | 0.61 | % | 0.61 | % | 0.61 | % | 0.62 | % | 0.62 | % | ||||||||||
Net investment income, after Waivers | 0.58 | % | 0.56 | % | 0.66 | % | 0.81 | % | 0.77 | % | ||||||||||
Portfolio turnover rate(d) | 89 | % | 25 | % | 34 | % | 31 | % | 44 | % |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
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Financial Highlights (continued)
PowerShares WilderHill Clean Energy Portfolio (PBW)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 5.76 | $ | 6.59 | $ | 4.79 | $ | 5.08 | $ | 10.35 | ||||||||||
Net investment income(a) | 0.11 | 0.14 | 0.10 | 0.11 | 0.20 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (1.66 | ) | (0.82 | ) | 1.85 | (0.26 | ) | (5.33 | ) | |||||||||||
Total from investment operations | (1.55 | ) | (0.68 | ) | 1.95 | (0.15 | ) | (5.13 | ) | |||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.10 | ) | (0.15 | ) | (0.15 | ) | (0.14 | ) | (0.14 | ) | ||||||||||
Net asset value at end of year | $ | 4.11 | $ | 5.76 | $ | 6.59 | $ | 4.79 | $ | 5.08 | ||||||||||
Market price at end of year(b) | $ | 4.11 | $ | 5.76 | $ | 6.59 | $ | 4.79 | $ | 5.08 | ||||||||||
Net Asset Value Total Return(c) | (27.19 | )% | (10.36 | )% | 41.23 | % | (2.64 | )% | (49.78 | )% | ||||||||||
Market Price Total Return(c) | (27.19 | )% | (10.36 | )% | 41.23 | % | (2.65 | )% | (49.68 | )% | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 101,255 | $ | 143,790 | $ | 218,101 | $ | 142,494 | $ | 178,016 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.70 | % | 0.70 | % | 0.70 | % | 0.70 | % | 0.70 | % | ||||||||||
Expenses, prior to Waivers | 0.76 | % | 0.72 | % | 0.70 | % | 0.70 | % | 0.76 | % | ||||||||||
Net investment income (loss), after Waivers | 2.37 | % | 2.39 | % | 1.55 | % | 2.48 | % | 2.98 | % | ||||||||||
Portfolio turnover rate(d) | 60 | % | 48 | % | 57 | % | 52 | % | 46 | % |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
PowerShares WilderHill Progressive Energy Portfolio (PUW)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 28.47 | $ | 32.73 | $ | 27.56 | $ | 25.87 | $ | 30.68 | ||||||||||
Net investment income(a) | 0.30 | 0.50 | 0.24 | 0.35 | 0.14 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (6.07 | ) | (4.27 | ) | 5.27 | 1.54 | (4.71 | ) | ||||||||||||
Total from investment operations | (5.77 | ) | (3.77 | ) | 5.51 | 1.89 | (4.57 | ) | ||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.33 | ) | (0.49 | ) | (0.34 | ) | (0.20 | ) | (0.24 | ) | ||||||||||
Net asset value at end of year | $ | 22.37 | $ | 28.47 | $ | 32.73 | $ | 27.56 | $ | 25.87 | ||||||||||
Market price at end of year(b) | $ | 22.36 | $ | 28.47 | $ | 32.71 | $ | 27.55 | $ | 25.86 | ||||||||||
Net Asset Value Total Return(c) | (20.29 | )% | (11.59 | )% | 20.24 | % | 7.38 | % | (14.84 | )% | ||||||||||
Market Price Total Return(c) | (20.32 | )% | (11.54 | )% | 20.21 | % | 7.38 | % | (14.93 | )% | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 23,487 | $ | 34,170 | $ | 45,819 | $ | 38,584 | $ | 47,859 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.70 | % | 0.70 | % | 0.70 | % | 0.70 | % | 0.71 | % | ||||||||||
Expenses, prior to Waivers | 0.99 | % | 0.86 | % | 0.84 | % | 0.87 | % | 0.86 | % | ||||||||||
Net investment income, after Waivers | 1.34 | % | 1.69 | % | 0.78 | % | 1.40 | % | 0.56 | % | ||||||||||
Portfolio turnover rate(d) | 40 | % | 41 | % | 37 | % | 32 | % | 36 | % |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
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PowerShares Exchange-Traded Fund Trust
April 30, 2016
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, 2016, the Trust offered fifty-three portfolios. This report includes the following portfolios:
Full Name | Short Name | |
PowerShares Aerospace & Defense Portfolio (PPA) | “Aerospace & Defense Portfolio” | |
PowerShares CleantechTM Portfolio (PZD) | “CleantechTM Portfolio” | |
PowerShares DWA Momentum Portfolio (PDP) | “DWA Momentum Portfolio” | |
PowerShares Global Listed Private Equity Portfolio (PSP) | “Global Listed Private Equity Portfolio” | |
PowerShares Golden Dragon China Portfolio (PGJ) | “Golden Dragon China Portfolio” | |
PowerShares S&P 500 BuyWrite Portfolio (PBP) | “S&P 500 BuyWrite Portfolio” | |
PowerShares S&P 500® Quality Portfolio (SPHQ) (formerly, PowerShares S&P 500® High Quality Portfolio) | “S&P 500® 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 NYSE Arca, Inc.
The market price of each Share 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 principally in exchange for the deposit or delivery of a basket of securities (“Deposit Securities”). 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 | Underlying Index | |
Aerospace & Defense Portfolio | SPADETM Defense Index | |
CleantechTM Portfolio | The Cleantech IndexTM | |
DWA Momentum Portfolio | Dorsey Wright® Technical Leaders Index | |
Global Listed Private Equity Portfolio | Red Rocks Global Listed Private Equity Index | |
Golden Dragon China Portfolio | NASDAQ Golden Dragon China Index | |
S&P 500 BuyWrite Portfolio | CBOE S&P 500 BuyWriteSM Index | |
S&P 500® Quality Portfolio | S&P 500® Quality Index* | |
Water Resources Portfolio | NASDAQ OMX US Water IndexSM | |
WilderHill Clean Energy Portfolio | WilderHill Clean Energy Index | |
WilderHill Progressive Energy Portfolio | WilderHill Progressive Energy Index |
* | Effective after the close of markets on March 18, 2016, the underlying index changed from S&P 500® High Quality Rankings Index to S&P 500® Quality 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. The following is a summary of the significant accounting policies followed by the Funds in preparation of their financial statements.
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A. Security Valuation
Securities, including restricted securities, are valued according to the following policies:
A security listed or traded on an exchange (except convertible securities) 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. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked 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 asked prices. For purposes of determining NAV per Share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day NAV per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the 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.
Debt obligations (including convertible securities) 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 (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Securities with a demand feature exercisable within one to seven days are valued at par. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts’) prices 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 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 Invesco PowerShares Capital Management LLC (the “Adviser”) determines 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’ prices 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.
Swap agreements are fair valued using an evaluated quote provided by an independent pricing service. Evaluated quotes provided by the pricing service are valued based on a model which may include end of day net present values, spreads, ratings, industry, and company performance.
Securities for which market prices are not provided by any of the above methods may be valued based upon quotes furnished by independent sources. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith following procedures approved by the Board of Trustees. Issuer-specific events, market trends, bid/asked 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.
Each Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
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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 investing strategies that seek returns in excess of their Underlying Indexes. 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.
Equity Risk. Equity risk is the risk that the value of the securities that each Fund holds will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities that a 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 securities a Fund holds; the price of securities 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 securities a Fund holds. In addition, securities 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.
Industry Concentration Risk. In following its methodology, each Fund’s Underlying Index from time to time will be concentrated to a significant degree in securities of issuers located in a single industry or a sector. To the extent that an Underlying Index concentrates in the securities of issuers in a particular industry or sector, each Fund will also concentrate its investments to approximately the same extent. By concentrating its investments in an industry or sector, a Fund may face more risks than if it were diversified broadly over numerous industries or sectors. In addition, at times, an industry or sector may be out of favor and underperform other industries or the market as a whole. Any factors detrimental to the performance of such industry or sector will disproportionately impact a Fund’s NAV.
Momentum Investing Risk. For DWA Momentum Portfolio, the Fund employs a “momentum” style of investing that is subject to the risk that the securities may be more volatile than the market as a whole, or that the returns on securities that have previously exhibited price momentum are less than returns on other styles of investing. Momentum can turn quickly, and stocks that previously exhibited high momentum may not experience continued positive momentum. In addition, there may be periods when the momentum style of investing is out of favor and therefore, the investment performance of the Fund may suffer.
Non-Diversified Fund Risk. Each Fund (except for CleantechTM Portfolio, DWA Momentum Portfolio, Global Listed Private Equity Portfolio, S&P 500 BuyWrite Portfolio, S&P 500® Quality Portfolio, WilderHill Clean Energy Portfolio and WilderHill Progressive Energy Portfolio) is non-diversified and can invest a greater portion of its assets in securities of individual issuers than diversified funds. 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 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.
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.
Foreign Investment Risk. For CleantechTM Portfolio and Golden Dragon China Portfolio, investments in the securities of non-U.S. issuers involve risks beyond those associated with investments in U.S. securities. Foreign securities may have relatively low market liquidity, greater market volatility, decreased publicly available information and less reliable financial information about issuers. Foreign securities also are subject to the risks of expropriation, nationalization, political instability, local taxation, potential currency transfer restrictions or other adverse political or economic developments and the difficulty of enforcing obligations in other countries. As the Fund may invest in securities denominated in foreign currencies, fluctuations in the value of the U.S. dollar relative to the values of other currencies may adversely affect investments in foreign securities and may negatively impact the Fund’s returns.
Foreign Securities Risk. For CleantechTM Portfolio, Global Listed Private Equity Portfolio, Golden Dragon China Portfolio and Water Resources Portfolio, since their Underlying Indexes may include ADRs and/or global depositary receipts (“GDRs”), investing in these Funds involve risks of investing in foreign securities, in addition to the risks associated with domestic securities. In general, foreign companies are not subject to the regulatory requirements of U.S. companies and, as such, there may be less publicly available information about these companies. Moreover, foreign companies often are subject to less stringent requirements regarding accounting, auditing, financial reporting and record-keeping than are U.S. companies. Therefore, not all material information regarding these companies will be available.
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Risk of Investing in Listed Private Equity Companies. For Global Listed Private Equity Portfolio, there are certain risks inherent in investing 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, or provide services to privately held companies. The 1940 Act imposes certain restraints upon the operations of BDCs. For example, BDCs are required to invest at least 70% of their total assets primarily in securities of private companies or thinly traded U.S. public companies, cash, cash equivalents, U.S. government securities and high quality debt investments that mature in one year or less. 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 incur indebtedness only in amounts such that the BDC’s asset coverage equals at least 200% after such incurrence. These limitations on asset mix and leverage may 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.
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.
Each Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed each Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
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 Transactions and Investment Income
Investment transactions are accounted for on a trade date basis. Realized gains and losses from the sale or disposition of securities are computed on the specific identified cost basis. Interest income is recorded on the accrual basis. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Realized gains, dividends and interest received by a Fund may give rise to withholding and other taxes imposed by foreign countries. Tax conventions between certain countries and the United States may reduce or eliminate such taxes.
The Funds may periodically participate in litigation related to each Fund’s investments. As such, the Funds may receive proceeds from litigation settlements. Any proceeds received are included in the Statements of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Corporate actions (including cash dividends) are recorded net of non-reclaimable foreign tax withholdings on the ex-date.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statements of Operations and the Statements of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of each Fund’s net asset value and, accordingly, they reduce each Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statements of Operations and the Statements of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between each Fund and the Adviser.
E. Country Determination
For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the Adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
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F. 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 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 (the “Independent Trustees”) or the Adviser, expenses incurred in connection with the Board members’ services, including travel expenses and legal fees of counsel for the Independent Trustees, acquired fund fees and expenses, if any, and extraordinary expenses.
S&P 500 BuyWrite Portfolio has agreed to pay an annual unitary management fee to the Adviser. Out of the unitary management fee, the Adviser has agreed to pay for substantially all expenses of the Fund, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for advisory fees, distribution fees, if any, brokerage expenses, taxes, interest, acquired fund fees and expenses, if any, 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 such investment companies’ expenses are included in the realized and unrealized gain or loss on the investments in the investment companies.
G. 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. Generally, 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 federal 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 year-end.
H. Option Contracts Written
S&P 500 BuyWrite Portfolio engaged 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 the Fund writes (sells) call options, the amount of the premium received is recorded as a liability in the Statements 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 Statements 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 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 (“CDS”) for investment purposes or to manage interest rate, currency or credit risk. Such transactions are agreements between two parties (“Counterparties”). These agreements may contain, among other conditions, events of default and termination events, and various covenants and representations such as provisions that require the Fund to maintain a pre-determined level of net assets, and/or provide limits regarding the decline of the Fund’s NAV over specific periods of time. If the Fund were to trigger such provisions and have open derivative positions at that time, the Counterparty may be able to terminate such agreement and request immediate payment in an amount equal to the net liability positions, if any.
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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 Statements 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 Statements 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 Statements of Operations. A liquidation payment received or made at the termination of a swap agreement is recorded as realized gain (loss) on the Statements of Operations. The Fund segregates cash or liquid securities having a value at least equal to the amount of the potential obligation of the Fund under any swap transaction. Cash held as collateral is recorded as deposits with brokers on the Statements of Assets and Liabilities. 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 Statements 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. It is possible that developments in the swaps market, including potential government regulation, could adversely affect the Fund’s ability to terminate existing swap agreements or to realize amounts to be received under such agreements.
J. Securities Lending
During the fiscal year ended April 30, 2016, CleantechTM Portfolio, Global Listed Private Equity Portfolio, Golden Dragon China Portfolio, WilderHill Clean Energy Portfolio and WilderHill Progressive Energy Portfolio participated in securities lending. Each Fund loaned portfolio securities having a market value up to one-third of each Fund’s total assets. Such loans are secured by cash collateral equal to no less than 102% (105% for international securities) 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 Schedules of Investments. Each Fund bears the risk of loss with respect to the investment of collateral. 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. When loaning securities, each Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to each 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 failed to return the securities. The securities loaned are subject to termination at the option of the borrower or each Fund. Upon termination, the borrower will return to each Fund the securities loaned and each Fund will return the collateral. 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. Each Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to each Fund. Some of these losses may be indemnified by the lending agent. Each 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, are included in Securities lending income on the Statements of Operations. The aggregate value of securities out on loan, if any, is shown on the Statements of Assets and Liabilities.
Note 3. Investment Advisory Agreement and Other Agreements
The Trust has entered into an Investment Advisory Agreement with the Adviser on behalf of each Fund, 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. Pursuant to that Investment Advisory Agreement, each Fund (except for S&P 500 BuyWrite Portfolio and S&P 500® Quality Portfolio) has agreed to pay the Adviser an annual fee of 0.50% of the Fund’s average daily net assets. S&P 500® Quality Portfolio has agreed to pay the Adviser an annual fee of 0.29% of the Fund’s average daily net assets.
As compensation for its services, S&P 500 BuyWrite Portfolio has agreed to pay the Adviser an annual unitary management fee of 0.75% of the Fund’s average daily net assets. Out of the unitary management fee, 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, and other services, except for advisory fees, distribution fees, if any, brokerage expenses, taxes, interest, acquired fund fees and expenses, if any, litigation expenses and other extraordinary expenses.
The Trust also has entered into an Amended and Restated Excess Expense Agreement (the “Expense Agreement”) with the Adviser on behalf of each Fund (except S&P 500 BuyWrite Portfolio), 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, acquired fund fees and expenses, if any, and extraordinary expenses) of each Fund (except for S&P 500® Quality Portfolio and S&P 500 BuyWrite Portfolio) from exceeding 0.60% of the Fund’s average daily net assets per year (the “Expense Cap”), through at least August 31, 2017. The Expense Cap (including sub-licensing fees) for S&P 500®
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Quality Portfolio is 0.29% of the Fund’s average daily net assets per year through at least August 31, 2017. Offering costs excluded from each Expense Cap for each Fund 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. Unless the Adviser continues the Expense Agreement, it will terminate on August 31, 2017. During its term, the Expense Agreement cannot be terminated or amended to increase the Expense Cap without approval of the Board of Trustees. The Adviser did not waive fees and/or pay Fund expenses during the period under this Expense Cap for Aerospace & Defense Portfolio, DWA Momentum Portfolio, Global Listed Private Equity Portfolio and Water Resources Portfolio.
Further, through August 31, 2018, the Adviser has contractually agreed to waive a portion of each Fund’s management fee in an amount equal to 100% of the net advisory fees an affiliate of the Adviser receives that are attributable to certain of the Fund’s investments in money market funds managed by that affiliate (excluding investments of cash collateral from securities lending). The Adviser cannot discontinue this waiver prior to its expiration. This agreement is not subject to recapture by the Adviser.
For the fiscal year ended April 30, 2016, the Adviser waived fees and/or paid Fund expenses for each Fund in the following amounts:
Aerospace & Defense Portfolio | $ | 865 | ||
CleantechTM Portfolio | 42,428 | |||
DWA Momentum Portfolio | 2,077 | |||
Global Listed Private Equity Portfolio | 71,625 | |||
Golden Dragon China Portfolio | 9,142 | |||
S&P 500 BuyWrite Portfolio | 619 | |||
S&P 500® Quality Portfolio | 524,503 | |||
Water Resources Portfolio | 893 | |||
WilderHill Clean Energy Portfolio | 63,048 | |||
WilderHill Progressive Energy Portfolio | 71,848 |
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.
For the following Funds, the amounts available for potential future recapture by the Adviser under the Expense Agreement and the expiration schedule at April 30, 2016 are as follows:
Total Potential Recapture Amounts | Potential Recapture Amounts Expiring | |||||||||||||||
04/30/17 | 04/30/18 | 04/30/19 | ||||||||||||||
CleantechTM Portfolio | $ | 111,934 | $ | 34,174 | $ | 35,420 | $ | 42,340 | ||||||||
Golden Dragon China Portfolio | 8,803 | — | — | 8,803 | ||||||||||||
S&P 500® Quality Portfolio | 1,202,715 | 286,999 | 392,147 | 523,569 | ||||||||||||
WilderHill Clean Energy Portfolio | 97,236 | — | 34,402 | 62,834 | ||||||||||||
WilderHill Progressive Energy Portfolio | 188,310 | 55,938 | 60,563 | 71,809 |
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 Funds are not charged any fees pursuant to the Distribution Agreement. 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 | ISBC LLC | |
CleantechTM Portfolio | Cleantech Indices LLC | |
DWA Momentum Portfolio | Dorsey Wright & Associates, LLC | |
Global Listed Private Equity Portfolio | Red Rocks Capital, LLC | |
Golden Dragon China Portfolio | The NASDAQ OMX Group, Inc. | |
S&P 500 BuyWrite Portfolio | S&P Dow Jones Indices LLC | |
S&P 500® Quality Portfolio | S&P Dow Jones Indices LLC | |
Water Resources Portfolio | The NASDAQ OMX Group, Inc. | |
WilderHill Clean Energy Portfolio | WilderHill | |
WilderHill Progressive Energy Portfolio | Progressive Energy Index LLC |
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Each Underlying Index name trademark is owned by its respective Licensor. These trademarks have been licensed to the Adviser for use by 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 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 the 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. Investments in Affiliates
The Adviser is a wholly-owned subsidiary of Invesco Ltd. and therefore, Invesco Ltd. is considered to be affiliated with the Funds. The table below shows S&P 500 BuyWrite Portfolio’s transactions in, and earnings from, its investment in affiliates for the fiscal year ended April 30, 2016.
S&P 500 BuyWrite Portfolio
Value April 30, 2015 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain | Value April 30, 2016 | Dividend Income | ||||||||||||||||||||||
Invesco Ltd. | $ | 393,117 | $ | 109,068 | $ | (202,157 | ) | $ | (116,961 | ) | $ | 31,677 | $ | 214,744 | $ | 8,880 |
The 1940 Act defines “affiliated person” to include issuers of which a fund holds 5% or more of the outstanding voting securities. The Fund listed below has not owned enough of the outstanding voting securities of the issuer to have control (as defined in the 1940 Act) of that issuer. The table below shows Water Resources Portfolio’s transactions in, and earnings from, its investment in affiliates for the fiscal year ended April 30, 2016.
Water Resources Portfolio
Value April 30, 2015 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation | Realized Gain (Loss) | Value April 30, 2016 | Dividend Income | ||||||||||||||||||||||
Layne Christensen Co.* | $ | 9,006,917 | $ | 2,440,930 | $ | (9,611,840 | ) | $ | 6,352,650 | $ | (5,631,475 | ) | $ | 2,557,182 | $ | — |
* | At April 30, 2016, this security was no longer affiliated. |
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 a 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, 2016, all of the securities in each Fund were valued based on Level 1 inputs (see the Schedules of Investments for security categories). The appreciation 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.
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Investments in Securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Global Listed Private Equity Portfolio | ||||||||||||||||
Equity Securities | $ | 361,878,682 | $ | — | $ | — | $ | 361,878,682 | ||||||||
Swap Agreements* | — | (1,226,396 | ) | — | (1,226,396 | ) | ||||||||||
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Total Investments | $ | 361,878,682 | $ | (1,226,396 | ) | $ | — | $ | 360,652,286 | |||||||
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Golden Dragon China Portfolio | ||||||||||||||||
Equity Securities | $ | 185,508,506 | $ | — | $ | 0 | $ | 185,508,506 | ||||||||
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* | Unrealized appreciation (depreciation). |
Note 6. Derivative Investments
Value of Derivative Investments at Fiscal Year-End
The table below summarizes the value of each Fund’s derivative investments, detailed by primary risk exposure, held as of April 30, 2016:
Value | ||||||||||||||||
Global Listed Private Equity Portfolio | S&P 500 BuyWrite Portfolio | |||||||||||||||
Risk Exposure/Derivative Type | Assets | Liabilities | Assets | Liabilities | ||||||||||||
Equity risk: | ||||||||||||||||
Swap agreements(a) | $ | 87 | $ | (1,226,483 | ) | $ | — | $ | — | |||||||
Options written contracts(a) | — | — | — | (2,098,140 | ) | |||||||||||
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$ | 87 | $ | (1,226,483 | ) | $ | — | $ | (2,098,140 | ) | |||||||
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(a) | Values are disclosed on the Statements of Assets and Liabilities under Unrealized appreciation on swap agreements, Unrealized depreciation on swap agreements and Open written options, at value, respectively. |
Effect of Derivative Investments for the Fiscal Year Ended April 30, 2016
The table below summarizes each Fund’s gains (losses) on derivative investments, detailed by primary risk exposure, recognized in earnings during the year:
Location of Gain (Loss) on Statements of Operations | ||||||||
Global Listed Private Equity Portfolio | S&P 500 BuyWrite Portfolio | |||||||
Swap Agreements | Options Written Contracts | |||||||
Realized Gain (Loss): | ||||||||
Equity risk | $ | (14,567,140 | ) | $ | (558,883 | ) | ||
Change in Net Unrealized Appreciation (Depreciation): | ||||||||
Equity risk | (685,203 | ) | 780,742 | |||||
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| |||||
Total | $ | (15,252,343 | ) | $ | 221,859 | |||
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The table below summarizes the average notional value of swap agreements and options outstanding during the year.
Average Notional Value | ||||||||
Global Listed Private Equity Portfolio | S&P 500 BuyWrite Portfolio | |||||||
Swap agreements | $ | 38,303,837 | $ | — | ||||
Options written contracts | — | 326,922,042 |
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Global Listed Private Equity Portfolio
Open Total Return Swap Agreements | ||||||||||||||
Counterparty | Swap Agreements | Termination Date | Notional Amount | Unrealized Appreciation (Depreciation) | ||||||||||
Citibank, N.A. | Receive a return equal to common shares of The Blackstone Group LP and pay the product of (i) 1-Month LIBOR plus 75 basis points multiplied by (ii) days in the period divided by 360 | 10/25/16 | $ | 15,276,285 | $ | (310,756 | ) | |||||||
Citibank, N.A. | Receive a return equal to the common shares of KKR & Co. LP and pay the product of (i) 1-Month LIBOR plus 75 basis points multiplied by (ii) days in the period divided by 360 | 10/25/16 | 14,863,900 | (915,727 | ) | |||||||||
Morgan Stanley Capital Services LLC | Receive a return equal to common shares of Riverstone Energy Ltd. and pay the product of (i) 1-Month LIBOR plus 85 basis points multiplied by (ii) days in the period divided by 365 | 08/03/16 | 2,342,288 | 87 | ||||||||||
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Total Open Total Return Swap Agreements—Equity Risk | $ | (1,226,396 | ) | |||||||||||
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Investment Abbreviations:
LIBOR—London Interbank Offered Rate
S&P 500 BuyWrite Portfolio
Open Options Written—Equity Risk | ||||||||||||||||||||||||||||
Contract Month | Strike Price | Number of Contracts | Premiums Received | Unrealized Appreciation | Notional Value* | Value | ||||||||||||||||||||||
Call Option S&P 500 Index | May-16 | $ | 2,085 | 1,452 | ($ | 3,729,398 | ) | $ | 1,631,258 | $ | 302,742,000 | ($ | 2,098,140 | ) |
* | Notional Value is calculated by multiplying the Number of Contracts by the Strike Price by the multiplier. |
Options Written Transactions During the Year | ||||||||
Call Option Contracts | ||||||||
Number of Contracts | Premiums Received | |||||||
Beginning of year | 1,958 | $ | 4,972,106 | |||||
Written | 20,199 | 61,405,594 | ||||||
Closed | (12,427 | ) | (39,162,278 | ) | ||||
Expired | (8,278 | ) | (23,486,024 | ) | ||||
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End of year | 1,452 | $ | 3,729,398 | |||||
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Offsetting Assets and Liabilities
Accounting Standards Update (“ASU”) No. 2011-11, Disclosures about Offsetting Assets and Liabilities, which was subsequently clarified in Financial Accounting Standards Board ASU 2013-01 “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities,” is intended to enhance disclosures about financial instruments and derivative investments that are subject to offsetting arrangements on the Statements of Assets and Liabilities and to enable investors to better understand the effect of those arrangements on each Fund’s financial position. In order for an arrangement to be eligible for netting, the Funds must have a basis to conclude that such netting arrangements are legally enforceable. The Funds enter into netting agreements and collateral agreements in an attempt to reduce the Funds’ counterparty credit risk by providing for a single net settlement with a counterparty of all financial transactions covered by the agreement in an event of default as defined under such agreement.
The following table presents derivative investments that are either subject to an enforceable netting agreement or offset by collateral arrangements as of April 30, 2016.
Global Listed Private Equity Portfolio
Gross Amounts Not Offset in the Statement of Assets and Liabilities | ||||||||||||||||||||
Gross Amounts | Collateral Received | |||||||||||||||||||
Counterparty | Financial Instruments | Non-Cash | Cash | Net Amount | ||||||||||||||||
Morgan Stanley, Capital Securities LLC | $ | 87 | $ | — | $ | — | $ | — | $ | 87 |
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Global Listed Private Equity Portfolio (continued)
Gross Amounts Not Offset in the Statement of Assets and Liabilities | ||||||||||||||||||||
Gross Amounts | Collateral Pledged | |||||||||||||||||||
Counterparty | Financial Instruments | Non-Cash | Cash | Net Amount | ||||||||||||||||
Citibank, N.A. | $ | 1,226,483 | $ | — | $ | (720,000 | ) | $ | — | $ | 506,483 |
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, 2016 and 2015:
2016 | 2015 | |||||||||||||||||||||||
Ordinary Income | Long-Term Capital Gains | Return of Capital | Ordinary Income | Long-Term Capital Gains | Return of Capital | |||||||||||||||||||
Aerospace & Defense Portfolio | $ | 3,934,869 | $ | — | $ | — | $ | 1,474,100 | $ | — | $ | — | ||||||||||||
CleantechTM Portfolio | 576,797 | — | — | 635,362 | — | — | ||||||||||||||||||
DWA Momentum Portfolio | 5,095,535 | — | — | 4,082,216 | — | — | ||||||||||||||||||
Global Listed Private Equity Portfolio | 22,461,093 | — | — | 27,591,991 | — | — | ||||||||||||||||||
Golden Dragon China Portfolio | 604,271 | — | 172,929 | 2,129,714 | — | — | ||||||||||||||||||
S&P 500 BuyWrite Portfolio | 16,484,756 | 929,816 | — | 16,581,570 | — | — | ||||||||||||||||||
S&P 500® Quality Portfolio | 10,888,763 | — | — | 7,699,802 | — | — | ||||||||||||||||||
Water Resources Portfolio | 5,414,109 | — | — | 5,760,750 | — | — | ||||||||||||||||||
WilderHill Clean Energy Portfolio | 2,346,665 | — | — | 4,135,076 | — | — | ||||||||||||||||||
WilderHill Progressive Energy Portfolio | 367,721 | — | — | 626,095 | — | — |
Tax Components of Net Assets at Fiscal Year-End:
Undistributed Ordinary Income | Temporary Book/Tax Differences | Net Unrealized Appreciation (Depreciation)— Investment Securities | Net Unrealized Appreciation (Depreciation)— Other Investments | Capital Loss Carryforwards | Late-Year Ordinary/ Post-October Capital Losses Deferrals* | Shares of Beneficial Interest | Total Net Assets | |||||||||||||||||||||||||
Aerospace & Defense Portfolio | $ | 376,206 | $ | (21,928 | ) | $ | 16,935,828 | $ | — | $ | (26,945,654 | ) | $ | (3,026,153 | ) | $ | 311,416,487 | $ | 298,734,786 | |||||||||||||
CleantechTM Portfolio | 201,518 | (19,465 | ) | 13,015,915 | (55 | ) | (81,727,745 | ) | — | 139,995,707 | 71,465,875 | |||||||||||||||||||||
DWA Momentum Portfolio | 1,937,965 | (52,343 | ) | 114,324,893 | — | (304,717,694 | ) | (84,521,423 | ) | 1,711,051,055 | 1,438,022,453 | |||||||||||||||||||||
Global Listed Private Equity Portfolio | 1,042,528 | (37,334 | ) | (49,245,317 | ) | (20,632 | ) | (87,930,124 | ) | (8,773,434 | ) | 470,888,842 | 325,924,529 | |||||||||||||||||||
Golden Dragon China Portfolio** | — | (33,567 | ) | (1,254,588 | ) | — | (295,354,974 | ) | (8,774,537 | ) | 468,665,900 | 163,248,234 | ||||||||||||||||||||
S&P 500 BuyWrite Portfolio | 807,310 | — | — | — | — | (8,073,626 | ) | 305,161,484 | 297,895,168 | |||||||||||||||||||||||
S&P 500® Quality Portfolio | 1,918,293 | (25,560 | ) | 25,619,099 | — | (89,578,410 | ) | (10,384,255 | ) | 971,528,723 | 899,077,890 | |||||||||||||||||||||
Water Resources Portfolio | 412,970 | (87,358 | ) | 124,268,792 | — | (606,824,470 | ) | (64,275,294 | ) | 1,226,968,068 | 680,462,708 | |||||||||||||||||||||
WilderHill Clean Energy Portfolio | 858,025 | (45,682 | ) | (10,798,143 | ) | — | (1,369,613,517 | ) | (12,756,120 | ) | 1,493,610,524 | 101,255,087 | ||||||||||||||||||||
WilderHill Progressive Energy Portfolio | 63,436 | (16,000 | ) | 986,927 | — | (37,592,724 | ) | (3,903,585 | ) | 63,949,002 | 23,487,056 |
* | Includes net 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”), that are deemed to arise on the first business day of each Fund’s next taxable year. |
** | The Golden Dragon China Portfolio incurred and will elect to defer Late-Year Ordinary Losses of $79,641 and Post-October Capital Losses of $8,694,896. |
Capital loss carryforwards are calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforwards actually available for the Funds to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. 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. Capital loss carryforwards with no expiration date 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 carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
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The following table presents available capital loss carryforwards and expiration dates for each Fund as of April 30, 2016.
Post-effective/no expiration | ||||||||||||||||||||||||||||
2017 | 2018 | 2019 | Short-Term | Long-Term | Total* | Expired | ||||||||||||||||||||||
Aerospace & Defense Portfolio | $ | 7,470,897 | $ | 6,428,813 | $ | 9,464,875 | $ | 222,565 | $ | 3,358,504 | $ | 26,945,654 | $ | 2,374,303 | ||||||||||||||
CleantechTM Portfolio | 14,341,075 | 25,186,026 | 12,098,616 | 2,005,428 | 28,096,600 | 81,727,745 | 1,171,839 | |||||||||||||||||||||
DWA Momentum Portfolio | 92,771,702 | 60,219,842 | 10,496,532 | 141,229,618 | — | 304,717,694 | 5,046,566 | |||||||||||||||||||||
Global Listed Private Equity Portfolio | 7,687,052 | 47,149,399 | — | 17,958,447 | 15,135,226 | 87,930,124 | 796,018 | |||||||||||||||||||||
Golden Dragon China Portfolio | 22,836,421 | 74,072,167 | 35,483,714 | 17,263,381 | 145,699,291 | 295,354,974 | 1,235,904 | |||||||||||||||||||||
S&P 500 BuyWrite Portfolio | — | — | — | — | — | — | — | |||||||||||||||||||||
S&P 500® Quality Portfolio | 37,241,965 | 42,466,537 | 9,869,908 | — | — | 89,578,410 | 19,599,607 | |||||||||||||||||||||
Water Resources Portfolio | 93,208,162 | 265,948,030 | 33,978,301 | 90,981,849 | 122,708,128 | 606,824,470 | 3,553,481 | |||||||||||||||||||||
WilderHill Clean Energy Portfolio | 261,712,498 | 460,657,845 | 241,008,862 | 73,921,396 | 332,312,916 | 1,369,613,517 | 44,707,703 | |||||||||||||||||||||
WilderHill Progressive Energy Portfolio | 8,319,827 | 12,433,887 | 2,282,887 | 4,871,192 | 9,684,931 | 37,592,724 | 179,432 |
* | Capital loss carryforwards as of the date listed above are reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
Note 8. Investment Transactions
For the fiscal year ended April 30, 2016, the cost of securities purchased and proceeds from sales of securities (other than short-term securities, U.S. Treasury obligations, money market funds and in-kind transactions, if any) were as follows:
Purchases | Sales | |||||||
Aerospace & Defense Portfolio | $ | 42,047,830 | $ | 42,427,743 | ||||
CleantechTM Portfolio | 17,678,067 | 17,652,732 | ||||||
DWA Momentum Portfolio | 1,804,586,564 | 1,805,291,481 | ||||||
Global Listed Private Equity Portfolio | 128,245,394 | 131,028,070 | ||||||
Golden Dragon China Portfolio | 84,417,803 | 84,719,793 | ||||||
S&P 500 BuyWrite Portfolio | 142,087,671 | 153,458,842 | ||||||
S&P 500® Quality Portfolio | 625,801,013 | 628,280,400 | ||||||
Water Resources Portfolio | 641,820,894 | 639,814,836 | ||||||
WilderHill Clean Energy Portfolio | 69,018,656 | 68,238,616 | ||||||
WilderHill Progressive Energy Portfolio | 10,056,209 | 9,981,299 |
For the fiscal year ended April 30, 2016, in-kind transactions associated with creations and redemptions were as follows:
Cost of Securities Received | Value of Securities Delivered | |||||||
Aerospace & Defense Portfolio | $ | 110,849,048 | $ | 77,606,984 | ||||
CleantechTM Portfolio | — | 4,329,461 | ||||||
DWA Momentum Portfolio | 825,017,608 | 1,118,526,906 | ||||||
Global Listed Private Equity Portfolio | 24,363,356 | 101,359,307 | ||||||
Golden Dragon China Portfolio | 31,182,610 | 74,361,423 | ||||||
S&P 500 BuyWrite Portfolio | 114,299,968 | 206,586,138 | ||||||
S&P 500® Quality Portfolio | 927,297,344 | 610,746,430 | ||||||
Water Resources Portfolio | 149,148,113 | 245,300,581 | ||||||
WilderHill Clean Energy Portfolio | 5,297,909 | 7,308,400 | ||||||
WilderHill Progressive Energy Portfolio | — | 3,458,298 |
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Gains (losses) on in-kind transactions are generally not considered taxable gains (losses) for federal income tax purposes.
At April 30, 2016, the aggregate cost and the net unrealized appreciation (depreciation) of investments for tax purposes were as follows:
Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation (Depreciation) | Cost | |||||||||||||
Aerospace & Defense Portfolio | $ | 27,683,659 | $ | (10,747,831 | ) | $ | 16,935,828 | $ | 281,830,933 | |||||||
CleantechTM Portfolio | 17,737,034 | (4,721,119 | ) | 13,015,915 | 61,384,803 | |||||||||||
DWA Momentum Portfolio | 133,179,094 | (18,854,201 | ) | 114,324,893 | 1,324,658,204 | |||||||||||
Global Listed Private Equity Portfolio | 15,983,102 | (65,228,419 | ) | (49,245,317 | ) | 411,123,999 | ||||||||||
Golden Dragon China Portfolio | 22,400,059 | (23,654,647 | ) | (1,254,588 | ) | 186,763,094 | ||||||||||
S&P 500 BuyWrite Portfolio | — | — | — | 300,092,927 | ||||||||||||
S&P 500® Quality Portfolio | 35,573,976 | (9,954,877 | ) | 25,619,099 | 873,418,059 | |||||||||||
Water Resources Portfolio | 144,916,743 | (20,647,951 | ) | 124,268,792 | 556,458,777 | |||||||||||
WilderHill Clean Energy Portfolio | 10,279,116 | (21,077,259 | ) | (10,798,143 | ) | 139,091,445 | ||||||||||
WilderHill Progressive Energy Portfolio | 3,548,543 | (2,561,616 | ) | 986,927 | 24,222,351 |
Note 9. Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of in-kind transactions and expired capital loss carryforwards on April 30, 2016, amounts were reclassified between undistributed net investment income, 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, 2016, the reclassifications were as follows:
Undistributed Net Investment Income | Undistributed Net Realized Gain (Loss) | Shares of Beneficial Interest | ||||||||||
Aerospace & Defense Portfolio | $ | — | $ | (15,394,929 | ) | $ | 15,394,929 | |||||
CleantechTM Portfolio | 1,844 | (207,873 | ) | 206,029 | ||||||||
DWA Momentum Portfolio | — | (151,209,270 | ) | 151,209,270 | ||||||||
Global Listed Private Equity Portfolio | (3,040,770 | ) | (2,646,446 | ) | 5,687,216 | |||||||
Golden Dragon China Portfolio | 315,525 | (13,716,213 | ) | 13,400,688 | ||||||||
S&P 500 BuyWrite Portfolio | 462,550 | (462,550 | ) | — | ||||||||
S&P 500® Quality Portfolio | — | (83,276,308 | ) | 83,276,308 | ||||||||
Water Resources Portfolio | — | (72,236,575 | ) | 72,236,575 | ||||||||
WilderHill Clean Energy Portfolio | 59,916 | 44,545,812 | (44,605,728 | ) | ||||||||
WilderHill Progressive Energy Portfolio | — | (521,632 | ) | 521,632 |
Note 10. Trustees’ and Officer’s Fees
Trustees’ and Officer’s Fees include amounts accrued by the Funds to pay remuneration to the Independent Trustees and an Officer of the Trust. The Adviser, as a result of the unitary management fee, pays for such compensation for S&P 500 BuyWrite Portfolio. The Trustee who is an “interested person” of the Trust does 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. Obligations under the Plan represent unsecured claims against the general assets of the Funds.
Note 11. Capital
Shares are created and redeemed by each Fund only in Creation Units of 50,000 Shares. Only Authorized Participants are permitted to purchase or redeem Creation Units from the Funds. Such transactions are principally permitted in exchange for Deposit Securities, with a balancing cash component to equate the transaction to the NAV per Share of a Fund of the Trust on the transaction date. However, for all Funds, cash in an amount equivalent to the value of certain securities may be substituted, generally when the securities are not available in sufficient quantity for delivery, not eligible for trading by the Authorized Participant or as a result of other market circumstances.
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To the extent that the Funds permit transactions in exchange for Deposit Securities, each Fund may issue Shares in advance of receipt of Deposit Securities subject to various conditions, including a requirement to maintain on deposit with the Trust cash at least equal to 105% of the market value of the missing Deposit Securities. In accordance with the Trust’s Participant Agreement, Creation Units will be issued to an Authorized Participant, notwithstanding the fact that the corresponding Deposit Securities have not been received in part or in whole, in reliance on the undertaking of the Authorized Participant to deliver the missing Deposit Securities as soon as possible, which undertaking shall be secured by the Authorized Participant’s delivery and maintenance of collateral consisting of cash in the form of U.S. dollars in immediately available funds having a value (marked-to-market daily) at least equal to 105%, which the Adviser may change from time to time, of the value of the missing Deposit Securities.
Transactions in each Fund’s Shares are disclosed in detail in the Statements of Changes in Net Assets.
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.
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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 Momentum Portfolio, PowerShares Global Listed Private Equity Portfolio, PowerShares Golden Dragon China Portfolio, PowerShares S&P 500 BuyWrite Portfolio, PowerShares S&P 500® Quality Portfolio (formerly 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, 2016, the results of each of their operations for the year then ended, the changes 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, 2016 by correspondence with the custodian and brokers, and the application of alternative auditing procedures where confirmations of security purchases have not been received, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Chicago, IL
June 23, 2016
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As a shareholder of a Fund of the PowerShares Exchange-Traded Fund Trust, (excluding PowerShares S&P 500 BuyWrite Portfolio), you incur advisory fees and other Fund expenses. As a shareholder of a Fund of the PowerShares S&P 500 BuyWrite Portfolio, you incur a unitary management fee. In addition to the unitary management fee, a shareholder may pay distribution fees, if any, brokerage expenses, taxes, interest, acquired fund fees and expenses, if any, litigation expenses and other extraordinary 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, 2016.
In addition to the fees and expenses which the PowerShares Global Listed Private Equity Portfolio (the “Portfolio”) bears directly, the Portfolio indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Portfolio invests. The amount of fees and expenses incurred indirectly by the Portfolio will vary because the investment companies have varied expenses and fee levels and the Portfolio may own different proportions of the investment companies at different times. Estimated 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 the estimated investment companies’ expenses that the Portfolio bears indirectly is 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, expenses shown in the table do not include the expenses of the underlying funds, which are borne indirectly by a Fund. If transaction costs and indirect expenses were included, your costs would have been higher.
Beginning Account Value November 1, 2015 | Ending Account Value April 30, 2016 | 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 | $ | 1,029.91 | 0.62 | % | $ | 3.13 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.78 | 0.62 | 3.12 | ||||||||||||
PowerShares CleantechTM Portfolio (PZD) | ||||||||||||||||
Actual | 1,000.00 | 1,036.52 | 0.67 | 3.39 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.53 | 0.67 | 3.37 | ||||||||||||
PowerShares DWA Momentum Portfolio (PDP) | ||||||||||||||||
Actual | 1,000.00 | 948.22 | 0.64 | 3.10 | ||||||||||||
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 | 963.69 | 0.65 | 3.17 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.63 | 0.65 | 3.27 |
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Fees and Expenses (continued)
Beginning Account Value November 1, 2015 | Ending Account Value April 30, 2016 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period(1) | |||||||||||||
PowerShares Golden Dragon China Portfolio (PGJ) | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 991.54 | 0.70 | % | $ | 3.47 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.38 | 0.70 | 3.52 | ||||||||||||
PowerShares S&P 500 BuyWrite Portfolio (PBP) | ||||||||||||||||
Actual | 1,000.00 | 990.13 | 0.75 | 3.71 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.13 | 0.75 | 3.77 | ||||||||||||
PowerShares S&P 500® Quality Portfolio (SPHQ) | ||||||||||||||||
Actual | 1,000.00 | 1,064.74 | 0.29 | 1.49 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,023.42 | 0.29 | 1.46 | ||||||||||||
PowerShares Water Resources Portfolio (PHO) | ||||||||||||||||
Actual | 1,000.00 | 1,010.34 | 0.60 | 3.00 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.88 | 0.60 | 3.02 | ||||||||||||
PowerShares WilderHill Clean Energy Portfolio (PBW) | ||||||||||||||||
Actual | 1,000.00 | 932.25 | 0.70 | 3.36 | ||||||||||||
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 | 1,044.21 | 0.70 | 3.56 | ||||||||||||
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, 2016. 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. |
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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, 2016:
Qualified Dividend Income* | Corporate Dividends Received Deduction* | Long-Term Capital Gains | |||||||||||||
PowerShares Aerospace & Defense Portfolio | 100 | % | 100 | % | $ | — | |||||||||
PowerShares CleantechTM Portfolio | 100 | % | 44 | % | — | ||||||||||
PowerShares DWA Momentum Portfolio | 100 | % | 100 | % | — | ||||||||||
PowerShares Global Listed Private Equity Portfolio | 62 | % | 26 | % | — | ||||||||||
PowerShares Golden Dragon China Portfolio | 100 | % | 0 | % | — | ||||||||||
PowerShares S&P 500 BuyWrite Portfolio | 0 | % | 0 | % | 928,816 | ||||||||||
PowerShares S&P 500® Quality Portfolio | 100 | % | 100 | % | — | ||||||||||
PowerShares Water Resources Portfolio | 100 | % | 100 | % | — | ||||||||||
PowerShares WilderHill Clean Energy Portfolio | 15 | % | 14 | % | — | ||||||||||
PowerShares WilderHill Progressive Energy Portfolio | 73 | % | 25 | % | — |
* | The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year. |
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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, 2016.
Name, Address and Year of Birth 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 - 1958 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Chairman of the Nominating and Governance Committee and Trustee | Chairman of the Nominating and Governance Committee and 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). | 124 | None | |||||
Todd J. Barre - 1957 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Trustee | Since 2010 | Assistant Professor of Business, Trinity Christian College (2010-2016); 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. | 124 | None | |||||
Marc M. Kole - 1960 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Chairman of the Audit Committee and Trustee | Chairman of the Audit Committee since 2008; and Trustee since 2006 | Senior Director of Finance, By The Hand Club for Kids (2015-Present); formerly: Chief Financial Officer, Hope Network (social services) (2008-2012); Assistant Vice President and Controller, Priority Health (health insurance) (2005-2008); Senior Vice President of Finance, United Healthcare (2004-2005); Chief Accounting Officer, Senior Vice President of Finance, Oxford Health Plans (2000-2004); Audit Partner, Arthur Andersen LLP (1996-2000). | 124 | None | |||||
Yung Bong Lim - 1964 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Chairman of the Investment Oversight Committee and Trustee | Chairman of the Investment Oversight Committee since 2014; Trustee since 2013 | Managing Partner, Residential Dynamics Group LLC (2008-Present); formerly, Managing Director, Citadel Investment Group, L.L.C. (1999-2007). | 124 | 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, 2016, the “Fund Family” consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 71 portfolios advised by the Adviser. |
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Trustees and Officers (continued)
Name, Address and Year of Birth 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 | |||||
Philip M. Nussbaum - 1961 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Trustee | Since 2003 | Chairman, Performance Trust Capital Partners (2004-Present). | 124 | None | |||||
Gary R. Wicker - 1961 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Trustee | Since 2013 | Senior Vice President of Global Finance and Chief Financial Officer at RBC Ministries (publishing company) (2013-Present); formerly, Executive Vice President and Chief Financial Officer, Zondervan Publishing (a division of Harper Collins/NewsCorp) (2007-2012); Senior Vice President and Group Controller (2005-2006), Senior Vice President and Chief Financial Officer (2003-2004), Chief Financial Officer (2001-2003), Vice President, Finance and Controller (1999-2001) and Assistant Controller (1997-1999), divisions of The Thomson Corporation (information services provider). | 124 | None | |||||
Donald H. Wilson - 1959 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Chairman of the Board and Trustee | Chairman since 2012; Trustee since 2006 | Chairman and Chief Executive Officer, Stone Pillar Advisors, Ltd. (2010-Present); formerly, Chairman, President and Chief Executive Officer, Community Financial Shares, Inc. and Community Bank - Wheaton/Glen Ellyn (subsidiary) (2013-2015); 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). | 124 | 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, 2016, the “Fund Family” consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 71 portfolios advised by the Adviser. |
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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 Year of Birth 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 Trustee | Other Directorships Held by Non-Independent Trustees During the Past 5 Years | |||||
Kevin M. Carome - 1956 Invesco Ltd. Two Peachtree Pointe, 1555 Peachtree St., N.E., Suite 1800 Atlanta, GA 30309 | Trustee | Since 2010 | Senior Managing Director, Secretary and General Counsel, Invesco Ltd. (2007-Present); Director, Invesco Advisers, Inc. (2009-Present); Director, Invesco Finance PLC, and Invesco Holding Company Limited; Director and Executive Vice President, Invesco Finance, Inc., Invesco Group Services, Inc., Invesco Investments (Bermuda) Ltd., Invesco North American Holdings, Inc., IVZ, Inc. and Invesco Asset Management (Bermuda) Ltd.; Manager, Horizon Flight Works LLC; Director and Secretary, IVZ Bahamas Private Limited; formerly, Director, INVESCO Funds Group, Inc., Senior Vice President, Secretary and General Counsel, Invesco Advisers, 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. | 124 | 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, 2016, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 71 portfolios advised by the Adviser. |
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Trustees and Officers (continued)
Name, Address and Year of Birth of Executive Officers | Position(s) Held with Trust | Length of Time Served* | Principal Occupation(s) During Past 5 Years | |||
Daniel E. Draper - 1968 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | President and Principal Executive Officer | Since 2015 | President and Principal Executive Officer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2015-Present); Chief Executive Officer (2016-Present) and Managing Director (2013-Present), Invesco PowerShares Capital Management LLC; Senior Vice President, Invesco Distributors, Inc. (2014-Present); formerly, Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-2015) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-2015); Managing Director, Credit Suisse Asset Management (2010-2013) and Lyxor Asset Management/Societe Generale (2007-2010). | |||
Steven M. Hill - 1964 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Vice President and Treasurer | Since 2013 | Vice President and Treasurer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Global ETF Administration, Invesco PowerShares Capital Management LLC (2011-Present); Principal Financial and Accounting Officer – Investment Pools, Invesco PowerShares Capital Management LLC (2015-Present); formerly, Senior Managing Director and Chief Financial Officer, Destra Capital Management LLC and its subsidiaries (2010-2011); Chief Financial Officer, Destra Investment Trust and Destra Investment Trust II (2010-2011); Senior Managing Director, Claymore Securities, Inc. (2003-2010); and Chief Financial Officer, Claymore sponsored mutual funds (2003-2010). | |||
Peter Hubbard - 1981 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Vice President | Since 2009 | Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2009-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Vice President and Director of Portfolio Management, Invesco PowerShares Capital Management LLC (2010-Present); formerly, Vice President of Portfolio Management, Invesco PowerShares Capital Management LLC (2008-2010); 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). | |||
Christopher Joe - 1969 Invesco PowerShares Capital Management LLC 11 Greenway Plaza, Suite 1000 Houston, TX 77046-1173 | Chief Compliance Officer | Since 2012 | Chief Compliance Officer of Invesco PowerShares Capital Management LLC (2015-Present); Chief Compliance Officer of PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2012-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); formerly, Chief Compliance Officer, Invesco Investment Advisers, LLC (registered investment adviser) (2010–2013), U.S. Compliance Director, Invesco, Ltd. (2006-2014) and Deputy Chief Compliance Officer of Invesco Advisers, Inc. (2014-2015). |
* | 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. |
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Trustees and Officers (continued)
Name, Address and Year of Birth of Executive Officers | Position(s) Held with Trust | Length of Time Served* | Principal Occupation(s) During Past 5 Years | |||
Sheri Morris - 1964 Invesco Management Group, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046 | Vice President | Since 2012 | President, Principal Executive Officer and Treasurer, The Invesco Funds (2016-Present); Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) (2009-Present) and Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2012-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); formerly, Vice President, Treasurer and Principal Financial Officer, The Invesco Funds (2008-2016); 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 (2011-2013); Vice President, Invesco Aim 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 - 1974 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Secretary | Since 2011 | Secretary, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2011-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Legal (2010-Present) and Secretary (2015-Present), 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). | |||
Rudolf E. Reitmann - 1971 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Vice President | Since 2013 | Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Global Exchange Traded Funds Services, Invesco PowerShares Capital Management LLC (2013-Present). | |||
David Warren - 1957 Invesco Canada Ltd. 5140 Yonge Street, Suite 800 Toronto, Ontario M2N 6X7 | Vice President | Since 2009 | Vice President, 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 (2009-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Managing Director - Chief Administrative Officer, Americas, Invesco PowerShares Capital Management LLC; Senior Vice President, Invesco Advisers, Inc. (2009-Present); Director, Invesco Inc. (2009-Present); Senior Vice President, Invesco Management Group, Inc. (2007-Present); Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (formerly, Invesco Trimark Ltd.); Chief Administrative Officer, North American Retail, Invesco Ltd. (2007-Present); Director, Invesco Corporate Class Inc. (2014-Present); Director, Invesco Global Direct Real Estate Feeder GP Ltd. (2015-Present); Director, Invesco Canada Holdings Inc. (2002-Present); Director, Invesco Financial Services Ltd. / Services Financiers Invesco Ltée and Trimark Investments Ltd./Placements Trimark Ltée (2014-Present); Director, Invesco IP Holdings (Canada) Ltd. (2016-Present); Director, Invesco Global Direct Real Estate GP Ltd. (2015-Present); formerly, Executive Vice President and Chief Financial Officer, Invesco Inc. (2009-2015); Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (formerly, Invesco Trimark Ltd.) (2000-2011). |
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. |
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Board Considerations Regarding Continuation of Investment Advisory Agreement
At a meeting held on April 14, 2016, 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 51 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 Momentum Portfolio
PowerShares DWA Basic Materials Momentum Portfolio
PowerShares DWA Consumer Cyclicals Momentum Portfolio
PowerShares DWA Consumer Staples Momentum Portfolio
PowerShares DWA Energy Momentum Portfolio
PowerShares DWA Financial Momentum Portfolio
PowerShares DWA Healthcare Momentum Portfolio
PowerShares DWA Industrials Momentum Portfolio
PowerShares DWA NASDAQ Momentum Portfolio
PowerShares DWA Technology Momentum Portfolio
PowerShares DWA Utilities Momentum Portfolio
PowerShares Dynamic Biotechnology & Genome Portfolio
PowerShares Dynamic Building & Construction Portfolio
PowerShares Dynamic Energy Exploration & Production Portfolio
PowerShares Dynamic Food & Beverage Portfolio
PowerShares Dynamic Large Cap Growth Portfolio
PowerShares Dynamic Large Cap Value Portfolio
PowerShares Dynamic Leisure and Entertainment Portfolio
PowerShares Dynamic Market Portfolio
PowerShares Dynamic Media Portfolio
PowerShares Dynamic Networking Portfolio
PowerShares Dynamic Oil & Gas Services Portfolio
PowerShares Dynamic Pharmaceuticals Portfolio
PowerShares Dynamic Retail Portfolio
PowerShares Dynamic Semiconductors Portfolio
PowerShares Dynamic Software Portfolio
PowerShares Financial Preferred Portfolio
PowerShares FTSE RAFI US 1000 Portfolio
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio
PowerShares Global Listed Private Equity Portfolio
PowerShares Golden Dragon China Portfolio
PowerShares High Yield Equity Dividend Achievers TM Portfolio
PowerShares International Dividend AchieversTM Portfolio
PowerShares Russell Top 200 Equal Weight Portfolio
PowerShares Russell Top 200 Pure Growth Portfolio
PowerShares Russell Top 200 Pure Value Portfolio
PowerShares Russell Midcap Equal Weight Portfolio
PowerShares Russell Midcap Pure Growth Portfolio
PowerShares Russell Midcap Pure Value Portfolio
PowerShares Russell 2000 Equal Weight Portfolio
PowerShares Russell 2000 Pure Growth Portfolio
PowerShares Russell 2000 Pure Value Portfolio
PowerShares S&P 500® 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 for each Fund, (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 to and amounts paid by other registered investment companies and (vii) any benefits realized by the Adviser from its relationship with each Fund.
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 staffing, including operational support 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 and/or oversight of execution of portfolio transactions on behalf of the Funds. The Trustees also reviewed information on the performance of the Funds and their underlying indexes for the one-year, three-year, five-year, ten-year and since-inception periods ended December 31, 2015, as applicable, including reports for each of those periods 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 certain Funds and their underlying indexes. In reviewing the tracking error reports, the Trustees considered information provided by Ibbotson Associates, a consultant to the Independent Trustees, with respect to general expected tracking error ranges and various explanations for any tracking error. 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 and 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.
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Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)
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, effort and resources 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 advisory fee and net expense ratio, as compared to information compiled by the Adviser from Lipper Inc. databases on the advisory fees and net expense ratios of comparable exchange-traded funds (“ETFs”), open-end (non-ETF) index funds and open-end (non-ETF) 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™ Portfolio, PowerShares High Yield Equity Dividend Achievers™ Portfolio, PowerShares International Dividend Achievers™ Portfolio, PowerShares FTSE RAFI US 1000 Portfolio, PowerShares FTSE RAFI US 1500 Small-Mid Portfolio, PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Equal Weight Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Equal Weight Portfolio, PowerShares Russell 2000 Pure Growth Portfolio, PowerShares Russell 2000 Pure Value Portfolio and PowerShares S&P 500® Quality Portfolio; |
● | 0.40% of the Fund’s average daily net assets for each of PowerShares Dividend Achievers™ Portfolio, PowerShares High Yield Equity Dividend Achievers™ Portfolio and PowerShares International Dividend Achievers™ Portfolio; |
● | 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 Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Pure Growth, Portfolio, PowerShares Russell 2000 Pure Value Portfolio and PowerShares S&P 500® Quality Portfolio; and |
● | 0.25% of the Fund’s average daily net assets for each of PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight Portfolio (The net advisory fees, after giving effect to the Expense Caps below, were 0.01%, -0.05% and -0.39% and, respectively, for PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight Portfolio.). |
The Trustees also noted that the Adviser has agreed to waive a portion of its advisory fee and/or pay expenses (an “Expense Cap”) to the extent necessary to prevent the annual operating expenses of each Fund from exceeding the percentage of that Fund’s average daily net assets, at least until August 31, 2017, 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 DWA NASDAQ Momentum 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™ Portfolio, PowerShares High Yield Equity Dividend Achievers™ Portfolio and PowerShares International Dividend Achievers™ 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 Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Pure Growth Portfolio and PowerShares Russell 2000 Pure Value Portfolio; |
● | 0.29%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for PowerShares S&P 500® Quality Portfolio; |
● | 0.25%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses for PowerShares Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight Portfolio; |
● | 0.60%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for PowerShares DWA Basic Materials Momentum Portfolio, PowerShares DWA Consumer Cyclicals Momentum Portfolio, PowerShares DWA Consumer Staples Momentum Portfolio, PowerShares DWA Energy Momentum Portfolio, PowerShares DWA Financial Momentum Portfolio, PowerShares DWA Healthcare Momentum Portfolio, PowerShares DWA Industrials Momentum Portfolio, PowerShares DWA Technology Momentum Portfolio and PowerShares DWA Utilities Momentum Portfolio; and |
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Board Considerations Regarding 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 serve as the investment adviser to any clients, other than other ETFs also overseen by the Trustees, with comparable investment strategies as the Funds, but that the Adviser provides sub-advisory services to clients with comparable investment strategies as certain of the Funds. The Trustees further noted the Adviser’s explanation with respect to the sub-advisory fees it receives for such services in comparison to the advisory fees charged to the Funds. The Trustees noted that the advisory fees for certain Funds were equal to or lower than the median advisory fees of their ETF and open-end index peer funds as illustrated in the table below. The Trustees also noted that the advisory fees for all of the Funds were lower than the median advisory fees of their open-end actively-managed peer funds.
PowerShares Fund | Equal to/Lower than ETF Median | Equal to/Lower than Open-End Index Fund Median* | Equal to/Lower than Open-End Active Fund Median | |||
PowerShares Aerospace & Defense Portfolio | X | |||||
PowerShares Buyback Achievers Portfolio | X | |||||
PowerShares Cleantech Portfolio | X | |||||
PowerShares Dividend Achievers Portfolio | X | X | ||||
PowerShares DWA Basic Materials Momentum Portfolio | X | |||||
PowerShares DWA Consumer Cyclicals Momentum Portfolio | X | |||||
PowerShares DWA Consumer Staples Momentum Portfolio | X | |||||
PowerShares DWA Energy Momentum Portfolio | X | |||||
PowerShares DWA Financial Momentum Portfolio | X | |||||
PowerShares DWA Healthcare Momentum Portfolio | X | |||||
PowerShares DWA Industrials Momentum Portfolio | X | |||||
PowerShares DWA Momentum Portfolio | X | |||||
PowerShares DWA NASDAQ Momentum Portfolio | X | |||||
PowerShares DWA Technology Momentum Portfolio | X | |||||
PowerShares DWA Utilities Momentum Portfolio | X | |||||
PowerShares Dynamic Biotechnology & Genome Portfolio | X | |||||
PowerShares Dynamic Building & Construction Portfolio | X | |||||
PowerShares Dynamic Energy Exploration & Production Portfolio | X | |||||
PowerShares Dynamic Food & Beverage Portfolio | X | |||||
PowerShares Dynamic Large Cap Growth Portfolio | X | |||||
PowerShares Dynamic Large Cap Value Portfolio | X | |||||
PowerShares Dynamic Leisure and Entertainment Portfolio | X | |||||
PowerShares Dynamic Market Portfolio | X | |||||
PowerShares Dynamic Media Portfolio | X | |||||
PowerShares Dynamic Networking Portfolio | X | |||||
PowerShares Dynamic Oil & Gas Services Portfolio | X | |||||
PowerShares Dynamic Pharmaceuticals Portfolio | X | |||||
PowerShares Dynamic Retail Portfolio | X | |||||
PowerShares Dynamic Semiconductors Portfolio | X | |||||
PowerShares Dynamic Software Portfolio | X | |||||
PowerShares Financial Preferred Portfolio | N/A | X | ||||
PowerShares FTSE RAFI US 1000 Portfolio | X | |||||
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio | X | X |
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Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)
PowerShares Fund | Equal to/Lower than ETF Median | Equal to/Lower than Open-End Index Fund Median* | Equal to/Lower than Open-End Active Fund Median | |||
PowerShares Russell Top 200 Equal Weight Portfolio | X | X | ||||
PowerShares Russell Top 200 Pure Growth Portfolio | X | |||||
PowerShares Russell Top 200 Pure Value Portfolio | X | |||||
PowerShares Russell Midcap Equal Weight Portfolio | X | |||||
PowerShares Russell Midcap Pure Growth Portfolio | X | X | X | |||
PowerShares Russell Midcap Pure Value Portfolio | X | X | ||||
PowerShares Russell 2000 Equal Weight Portfolio | X | X | ||||
PowerShares Russell 2000 Pure Growth Portfolio | X | X | ||||
PowerShares Russell 2000 Pure Value Portfolio | X | |||||
PowerShares Global Listed Private Equity Portfolio | N/A | X | ||||
PowerShares Golden Dragon China Portfolio | X | N/A | X | |||
PowerShares High Yield Equity Dividend Achievers Portfolio | X | X | ||||
PowerShares International Dividend Achievers Portfolio | X | X | X | |||
PowerShares S&P 500 Quality Portfolio | X | |||||
PowerShares Water Resources Portfolio | X | |||||
PowerShares WilderHill Clean Energy Portfolio | X | |||||
PowerShares WilderHill Progressive Energy Portfolio | X | |||||
PowerShares Zacks Micro Cap Portfolio | X |
* | The information provided by the Adviser indicated that certain Funds did not have open-end index fund peers. Those Funds have been designated with an “N/A” for not available. |
The Trustees determined that the advisory fees were reasonable, noting the nature of the indexes, the distinguishing factors of the Funds, and the administrative, operational and management oversight costs for the Adviser. The Trustees noted that the net expense ratios for certain Funds were equal to or lower than the median net expense ratios of their ETF and open-end index peer funds as illustrated in the table below. The Trustees also noted that the net expense ratios for all of the Funds were lower than the median net expense ratios of their open-end actively-managed peer funds.
PowerShares Fund | Equal to/Lower than ETF Median | Equal to/Lower than Open-End Index Fund Median | Equal to/Lower than Open-End Active Fund Median | |||
PowerShares Aerospace & Defense Portfolio | X | |||||
PowerShares Buyback Achievers Portfolio | X | |||||
PowerShares Cleantech Portfolio | X | |||||
PowerShares Dividend Achievers Portfolio | X | X | ||||
PowerShares DWA Basic Materials Momentum Portfolio | X | |||||
PowerShares DWA Consumer Cyclicals Momentum Portfolio | X | |||||
PowerShares DWA Consumer Staples Momentum Portfolio | X | |||||
PowerShares DWA Energy Momentum Portfolio | X | |||||
PowerShares DWA Financial Momentum Portfolio | X | |||||
PowerShares DWA Healthcare Momentum Portfolio | X | |||||
PowerShares DWA Industrials Momentum Portfolio | X | |||||
PowerShares DWA Momentum Portfolio | X | X | ||||
PowerShares DWA NASDAQ Momentum Portfolio | X | X | ||||
PowerShares DWA Technology Momentum Portfolio | X |
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Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)
PowerShares Fund | Equal to/Lower than ETF Median | Equal to/Lower than Open-End Index Fund Median | Equal to/Lower than Open-End Active Fund Median | |||
PowerShares DWA Utilities Momentum Portfolio | X | |||||
PowerShares Dynamic Biotechnology & Genome Portfolio | X | |||||
PowerShares Dynamic Building & Construction Portfolio | X | |||||
PowerShares Dynamic Energy Exploration & Production Portfolio | X | |||||
PowerShares Dynamic Food & Beverage Portfolio | X | |||||
PowerShares Dynamic Large Cap Growth Portfolio | X | |||||
PowerShares Dynamic Large Cap Value Portfolio | X | |||||
PowerShares Dynamic Leisure and Entertainment Portfolio | X | |||||
PowerShares Dynamic Market Portfolio | X | |||||
PowerShares Dynamic Media Portfolio | X | |||||
PowerShares Dynamic Networking Portfolio | X | |||||
PowerShares Dynamic Oil & Gas Services Portfolio | X | |||||
PowerShares Dynamic Pharmaceuticals Portfolio | X | |||||
PowerShares Dynamic Retail Portfolio | X | |||||
PowerShares Dynamic Semiconductors Portfolio | X | |||||
PowerShares Dynamic Software Portfolio | X | |||||
PowerShares Financial Preferred Portfolio | N/A | X | ||||
PowerShares FTSE RAFI US 1000 Portfolio | X | X | X | |||
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio | X | X | X | |||
PowerShares Russell Top 200 Equal Weight Portfolio | X | X | ||||
PowerShares Russell Top 200 Pure Growth Portfolio | X | X | ||||
PowerShares Russell Top 200 Pure Value Portfolio | X | |||||
PowerShares Russell Midcap Equal Weight Portfolio | X | X | ||||
PowerShares Russell Midcap Pure Growth Portfolio | X | X | X | |||
PowerShares Russell Midcap Pure Value Portfolio | X | X | ||||
PowerShares Russell 2000 Equal Weight Portfolio | X | X | X | |||
PowerShares Russell 2000 Pure Growth Portfolio | X | X | ||||
PowerShares Russell 2000 Pure Value Portfolio | X | X | ||||
PowerShares Global Listed Private Equity Portfolio | N/A | X | ||||
PowerShares Golden Dragon China Portfolio | X | N/A | X | |||
PowerShares High Yield Equity Dividend Achievers Portfolio | X | X | ||||
PowerShares International Dividend Achievers Portfolio | X | X | X | |||
PowerShares S&P 500 Quality Portfolio | X | X | X | |||
PowerShares Water Resources Portfolio | X | |||||
PowerShares WilderHill Clean Energy Portfolio | X | |||||
PowerShares WilderHill Progressive Energy Portfolio | X | |||||
PowerShares Zacks Micro Cap Portfolio | X |
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.
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Board Considerations Regarding 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 overall profitability as well as the estimated profitability to the Adviser from its relationship to each Fund. The Trustees concluded that the overall and estimated profitability to the Adviser 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 Cap agreed to by the Adviser. 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 DWA NASDAQ Momentum 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.
The Trustees noted that the Adviser had not identified any further benefits that it derived from its relationship with the Funds and had noted that it does not have any soft-dollar arrangements.
Based on all of the information considered and the conclusions reached, the Board, including the Independent Trustees, determined to approve the continuation of the Investment Advisory Agreement for each Fund. No single factor was determinative in the Board’s analysis.
| 88 |
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Board Considerations Regarding Continuation of Investment Advisory Agreement
At a meeting held on April 14, 2016, 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 together, 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 for each Fund, (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 to and amounts paid by other registered investment companies and (vii) any benefits realized by the Adviser from its relationship with each Fund.
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 staffing, including operational support 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 their underlying indexes for the one-year, three-year, five-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, 2015, including reports for each of those periods on the correlation and tracking error between each Fund’s performance and the performance of its underlying index. In reviewing the tracking error report, the Trustees considered information provided by Ibbotson Associates, a consultant to the Independent Trustees, with respect to general expected tracking error ranges and various explanations for any tracking error. 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, effort and resources 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 net expense ratio and unitary advisory fee, as compared to information compiled by the Adviser from Lipper Inc. databases on the net expense ratios of comparable exchange-traded funds (“ETFs”), open-end (non-ETF) index funds and open-end (non-ETF) 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 Fund, except that each Fund pays its brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses.
The Trustees noted that the Adviser represented that it does not serve as an investment adviser to any clients, other than other ETFs also overseen by the Trustees, with comparable investment strategies as the Funds. The Trustees noted that PowerShares NASDAQ Internet Portfolio’s net expense ratio was higher than the median net expense ratios of its ETF peer funds and open-end index peer funds, but was lower than the median net expense ratio of its open-end actively-managed peer funds. The Trustees noted that PowerShares S&P 500 BuyWrite Portfolio’s net expense ratio was lower than the median net expense ratios of its ETF peer funds and open-end actively-managed peer funds, but was higher than the median net expense ratio of its open-end index peer funds. The Trustees noted that each Fund’s advisory fee was reasonable because of the nature of the indexes, the distinguishing factors of the Funds and the 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 overall profitability as well as the estimated profitability to the Adviser from its relationship to each Fund. The Trustees concluded that the overall and estimated profitability to the Adviser was not unreasonable.
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Board Considerations Regarding 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 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 a level of 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.
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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 each Fund 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.
Frequency Distribution of Discounts and Premiums
A table showing the number of days the market price of each Fund’s shares was greater than the Fund’s net asset value, and the number of days it was less than the Fund’s net asset value (i.e., premium or discount) for the most recently completed calendar year, and the calendar quarters since that year end (or the life of the Fund, if shorter) may be found at the Fund’s website at www.invescopowershares.com.
©2016 Invesco PowerShares Capital Management LLC | P-PS-AR-4 | |||||
3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | ||||||
invescopowershares.com 800.983.0903 | @PowerShares |
April 30, 2016 |
2016 Annual Report to Shareholders
PKW | PowerShares BuyBack AchieversTM Portfolio | |
PFM | PowerShares Dividend AchieversTM Portfolio | |
PGF | PowerShares Financial Preferred Portfolio | |
PEY | PowerShares High Yield Equity Dividend AchieversTM Portfolio | |
PID | PowerShares International Dividend AchieversTM Portfolio |
The Market Environment | 3 | |||
Manager’s Analysis | 4 | |||
Dividend Income Portfolios | ||||
Schedules of Investments | ||||
18 | ||||
21 | ||||
24 | ||||
PowerShares High Yield Equity Dividend AchieversTM Portfolio (PEY) | 26 | |||
PowerShares International Dividend AchieversTM Portfolio (PID) | 28 | |||
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 | |||
47 | ||||
Fees and Expenses | 48 | |||
Tax Information | 49 | |||
Trustees and Officers | 50 | |||
Board Considerations Regarding Continuation of Investment Advisory Agreement | 55 |
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US Equity
Although the health of individual economic sectors varied dramatically, the US economy overall continued its slow but steady growth during the fiscal year ended April 30, 2016. This modest growth led to recurring debate over whether the US economy could withstand global recessionary forces. Many energy, industrial and materials companies experienced cyclical downturns resembling a mild recession even as many consumer-related companies benefited from continued low interest rates, increased availability of credit and a better employment picture. Another significant downturn in oil prices reduced capital investment but also reduced consumers’ energy and gasoline costs.
In the first half of the reporting period, US equity market performance was greatly affected by expectations of when, and whether, the US Federal Reserve (the “Fed”) might raise interest rates—and the impact the Fed’s action might have. Markets moved lower in the summer of 2015 as a significant downturn in China’s financial markets and weak global economic growth led to increased concern about the sustainability of US economic growth. In the fall, markets rallied and the Fed saw enough economic stabilization to finally raise interest rates.
US stocks began 2016 on a negative note. Together with a sharp decline in oil prices, this suggested a global recession might be imminent and caused investors to become decidedly risk averse; this helped short-term and income-oriented investments, but hurt longer-term and growth-oriented investments. As companies reported earnings and fundamentals that were better than had been feared, stocks rallied sharply in late February and March. Additionally, oil prices strengthened modestly on the back of a weaker US dollar and as Saudi Arabia and Russia considered a freeze on their oil output. Overall, US equity markets were mixed, with the S&P 500 Index, considered representative of the performance of the US stock market, finishing the reporting period modestly higher.
Global Equity
The global economy continued to expand, albeit slowly, during the fiscal year ended April 30, 2016. However, that growth became increasingly uneven across developed and emerging economies. Central bank policies also began to diverge as the Fed followed through on its commitment to normalize monetary policy by raising interest rates—even as the European Central Bank extended its asset purchase program and the Bank of Japan introduced additional quantitative easing.
Global equity markets faced significant headwinds during the fiscal year, although developed markets were generally able to better withstand these headwinds than more fragile emerging markets. As the reporting period began, diverging monetary policy caused the US dollar to strengthen against many other currencies. During
the summer of 2015, China’s surprise devaluation of the renminbi and a significant downturn in its financial markets triggered a massive sell-off in global equity markets, particularly in already-vulnerable emerging markets. In the fall, markets around the world began to regain their footing. However, 2016 began on a sharply negative note, with equity markets falling as the price of oil declined. In February 2016, markets reversed course, bouncing back sharply as economic data and earnings were better than had been feared. In Japan and Europe, central banks signaled their ongoing commitment to very loose monetary policy, but in the US, the Fed indicated that it may delay additional interest rate increases. As a result, the US dollar fell sharply against the euro and Japanese yen; this benefited oil and stock prices generally. For the reporting period as a whole, US equity markets were mixed, while developed international equity markets were down modestly. Although emerging markets rallied strongly toward the end of the reporting period, many—particularly China, Brazil and Russia—were down significantly for the fiscal year.
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PKW | Manager’s Analysis | |
PowerShares BuyBack Achievers™ Portfolio (PKW) |
As an index fund, the PowerShares BuyBack Achievers™ Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the NASDAQ US BuyBack Achievers™ Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks that comprise the Index.
The NASDAQ OMX Group, Inc. (the “Index Provider”) compiles, maintains and calculates the Index, which is designed to track the performance of issuers that are classified as “BuyBack Achievers™”. In order to be eligible for inclusion in the Index, an issuer must (i) be incorporated in the United States or certain benefits-driven incorporation countries (i.e., countries that provide tax or other benefits for incorporation); (ii) trade on the NASDAQ, NYSE or NYSE MKT; (iii) have effected a net reduction in shares outstanding of 5% or more in the past 12 months; and (iv) have a minimum average daily cash volume of $500,000 in October, November and December prior to each annual reconstitution of the Index in January. Strictly in accordance with its guidelines and mandated procedures, the Index Provider weights the universe of companies according to a modified market capitalization, using each company’s eligible shares outstanding and the closing price at the company’s last trading day in December. No single company may exceed 5% of the Index as of either a reconstitution or rebalance date. The Index Provider will modify the Index weight of companies with market capitalizations that exceed 5% of the Index to equal 5% of the Index. The Index Provider will redistribute the excess amounts from companies whose initial market capitalizations exceeded 5% of the Index among the remaining companies in proportion to their initial weights until no company exceeds 5% of the Index. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned (5.20)%. On a net asset value (“NAV”) basis, the Fund returned (5.18)%. During the same time period, the Index returned (4.59)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.
During this same time period, the S&P 500® Index (the “Benchmark Index”) returned 1.21%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 500 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a broad U.S. equity market benchmark. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the U.S. equity market.
The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a modified market capitalization weighting methodology and stock selection methodology based on stock buybacks, whereas the Benchmark Index weights stocks based on market capitalization and does not have a buyback methodology.
Relative to the Benchmark Index, the Fund was most overweight in the consumer discretionary sector and most underweight in the consumer staples sector during the fiscal year ended April 30, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to stock selection within the information technology and consumer discretionary sectors.
For the fiscal year ended April 30, 2016, the industrials sector contributed most significantly to the Fund’s return, followed by the financials and consumer staples sectors, respectively. The information technology sector detracted most significantly from the Fund’s return, followed by the energy and materials sectors, respectively.
Positions that contributed most significantly to the Fund’s return included Home Depot, Inc. (The), a consumer discretionary company (no longer held at fiscal year-end), and Northrop Grumman Corp., an industrials company (portfolio average weight of 1.68%). Positions that detracted most significantly from the Fund’s return included International Business Machines Corp., an information technology company (no longer held at fiscal year-end), and Apple, Inc., an information technology company (no longer held at fiscal year-end).
| 4 |
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PowerShares BuyBack AchieversTM Portfolio (PKW) (continued)
Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Consumer Discretionary | 23.1 | |||
Industrials | 23.0 | |||
Financials | 17.9 | |||
Information Technology | 13.7 | |||
Health Care | 8.9 | |||
Consumer Staples | 5.4 | |||
Materials | 4.3 | |||
Energy | 2.8 | |||
Utilities | 0.9 | |||
Telecommunication Services | 0.0 | |||
Money Market Funds Plus Other Assets Less Liabilities | (0.0) | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
McDonald’s Corp. | 5.0 | |||
Boeing Co. (The) | 4.6 | |||
QUALCOMM, Inc. | 4.0 | |||
Lowe’s Cos., Inc. | 3.6 | |||
Mondelez International, Inc., Class A | 3.5 | |||
American International Group, Inc. | 3.3 | |||
Biogen, Inc. | 3.2 | |||
Express Scripts Holding Co. | 2.5 | |||
Monsanto Co. | 2.2 | |||
Illinois Tool Works, Inc. | 2.0 | |||
Total | 33.9 |
* | Excluding money market fund holdings. |
| 5 |
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PowerShares BuyBack AchieversTM Portfolio (PKW) (continued)
Growth of a $10,000 Investment Since Inception†
Fund Performance History as of April 30, 2016
1 Year | 3 Years Average | 3 Years Cumulative | 5 Years Average | 5 Years Cumulative | Fund Inception† | |||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||
NASDAQ US Buyback Achievers™ Index | (4.59 | )% | 11.55 | % | 38.82 | % | 12.80 | % | 82.64 | % | 8.42 | % | 113.18 | % | ||||||||||||||||
S&P 500® Index | 1.21 | 11.26 | 37.71 | 11.02 | 68.63 | 6.31 | 77.32 | |||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||
NAV Return | (5.18 | ) | 10.83 | 36.15 | 12.04 | 76.56 | 7.65 | 99.34 | ||||||||||||||||||||||
Market Price Return | (5.20 | ) | 10.81 | 36.05 | 12.03 | 76.49 | 7.63 | 98.94 |
Fund Inception: December 20, 2006
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.64%, including acquired fund fees and expenses of 0.01%. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and
Market 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 and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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.
† | Fund, Index and Benchmark Index returns are based on the inception date of the Fund. |
| 6 |
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PFM | Manager’s Analysis | |
PowerShares Dividend Achievers™ Portfolio (PFM) |
As an index fund, the PowerShares Dividend Achievers™ Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the NASDAQ US Broad Dividend Achievers™ Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies that comprise the Index.
NASDAQ OMX Group, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. The Index is designed to track the performance of issuers that meet the requirements to be classified as “Dividend Achievers™.” To become eligible for inclusion in the Index, an issuer must (i) be included in the NASDAQ US Benchmark Index (other than limited partnerships, which must trade on the NASDAQ, NYSE or NYSE MKT); (ii) have raised its annual regular dividend payments for at least each of the last ten consecutive years; and (iii) have a minimum three-month average daily trading volume of $1 million. Strictly in accordance with its guidelines and mandated procedures, the Index Provider calculates the total annual regular cash dividend payment for each security in the universe of issuers using the last available ex-dividend date for the previous year. The Index Provider weights the universe of issuers according to a modified market capitalization methodology. The Index Provider will rebalance the Index on a quarterly basis, using each issuer’s closing price on the last trading day in February, May, August and November. At the rebalance date, no single issuer’s weight may exceed 4% of the weight of the Index. The Index Provider will redistribute the excess amounts proportionately from larger issuers until no issuer’s weight exceeds 4% of the Index. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned 4.08%. On a net asset value (“NAV”) basis, the Fund returned 3.98%. During the same time period, the Index returned 4.51%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.
During this same time period, the Russell 3000® Value Index (the “Benchmark Index”) returned (0.68)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 2,010 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a broad based market benchmark. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the value segment of the US equity universe.
The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a modified market capitalization weighting methodology and stock selection methodology based on dividend-paying stocks, whereas the Benchmark Index weights stocks based on market capitalization and focuses on lower price-to-book and lower forecasted growth values.
Relative to the Benchmark Index, the Fund was most overweight in the consumer staples sector and most underweight in the financials sector during the fiscal year ended April 30, 2016. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to stock selection in the utilities, consumer discretionary and healthcare sectors as well as being overweight in consumer staples.
For the fiscal year ended April 30, 2016, the consumer staples sector contributed most significantly to the Fund’s return, followed by the utilities and consumer discretionary sectors, respectively. The energy sector detracted most significantly from the Fund’s return, followed by the information technology and materials sectors, respectively.
Positions that contributed most significantly to the Fund’s return included Johnson & Johnson, a health care company (portfolio average weight of 4.06%), and AT&T, Inc., a telecommunication services company (portfolio average weight of 3.23%). Positions that detracted most significantly from the Fund’s return included ConocoPhillips, an energy company (no longer held at fiscal year-end), and Wal-Mart Stores, Inc., a consumer staples company (portfolio average weight of 3.39%).
| 7 |
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PowerShares Dividend Achievers™ Portfolio (PFM) (continued)
Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Consumer Staples | 23.6 | |||
Industrials | 13.7 | |||
Energy | 10.7 | |||
Information Technology | 10.7 | |||
Health Care | 9.0 | |||
Consumer Discretionary | 7.9 | |||
Financials | 7.0 | |||
Telecommunication Services | 6.8 | |||
Utilities | 6.4 | |||
Materials | 4.2 | |||
Other Assets Less Liabilities | 0.0 | |||
Top Ten Fund Holdings (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
Exxon Mobil Corp. | 4.2 | |||
Johnson & Johnson | 4.0 | |||
Microsoft Corp. | 3.7 | |||
AT&T, Inc. | 3.6 | |||
Procter & Gamble Co. (The) | 3.3 | |||
Wal-Mart Stores, Inc. | 3.2 | |||
Verizon Communications, Inc. | 3.1 | |||
Coca-Cola Co. (The) | 2.9 | |||
Chevron Corp. | 2.9 | |||
PepsiCo, Inc. | 2.3 | |||
Total | 33.2 |
| 8 |
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PowerShares Dividend Achievers™ Portfolio (PFM) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2016
1 Year | 3 Years Average | 3 Years Cumulative | 5 Years Average | 5 Years Cumulative | 10 Years Average | 10 Years Cumulative | Fund Inception† | |||||||||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||||||||||
NASDAQ US Broad Dividend AchieversTM Index | 4.51 | % | 8.72 | % | 28.50 | % | 10.29 | % | 63.16 | % | 6.28 | % | 83.85 | % | 6.57 | % | 96.63 | % | ||||||||||||||||||||
Russell 3000® Value Index | (0.68 | ) | 9.34 | 30.72 | 9.85 | 59.97 | 5.58 | 72.12 | 6.25 | 90.51 | ||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||
NAV Return | 3.98 | 8.13 | 26.42 | 9.68 | 58.69 | 5.65 | 73.25 | 5.93 | 84.42 | |||||||||||||||||||||||||||||
Market Price Return | 4.08 | 8.14 | 26.48 | 9.67 | 58.68 | 5.64 | 73.13 | 5.93 | 84.40 |
Fund Inception: September 15, 2005
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.55%. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund
at NAV and Market 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 and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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.
† | Fund, Index and Benchmark Index returns are based on the inception date of the Fund. |
| 9 |
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PGF | Manager’s Analysis | |
PowerShares Financial Preferred Portfolio (PGF) |
As an index fund, the PowerShares Financial Preferred Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. 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 of financial institutions that comprise the Index.
Wells Fargo (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its guidelines and mandated procedures, the Index provider selects constituents for the Index to attempt to portray a cross-section of the universe of preferred and functionally equivalent securities issued by financial institutions and listed on the NYSE, NYSE MKT, NYSE Arca, Inc. or NASDAQ and that meet certain criteria. The Index is composed of preferred securities with either fixed or floating rate dividends issued by financial institutions that have received an industrial sector classification of “financial” from the Bloomberg Professional Service®. The Index Provider includes securities in the Index pursuant to a proprietary selection methodology based on a number of criteria including ratings, perpetual maturity, US dollar-denominated, minimum par value of shares outstanding, dividend classification and liquidity requirements. The constituents are then weighted using a modified market capitalization methodology designed to limit the concentration of the largest securities. No security may account for more than 20% of the Index. The Fund does not purchase all of the securities in the Index; instead, the Fund utilizes a “sampling” methodology to seek to achieve its investment objective.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned 8.12%. On a net asset value (“NAV”) basis, the Fund returned 8.01%. During the same time period, the Index returned 8.48%. The Fund’s performance differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.
During this same time period, the S&P U.S. Preferred Stock Index (the “Benchmark Index”) returned 4.69%. The Benchmark Index is an unmanaged index weighted by modified market capitalization based on the average performance of approximately 290 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a broader preferred stock benchmark. The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broader representation of the U.S. preferred stock market, which includes convertible preferred stocks.
The Fund focuses on financial sector preferred securities while the Benchmark Index is a broader representation of the preferred
stock market. As such, the outperformance of the Fund compared to the Benchmark Index can mainly be attributed to a difference in financial sector focus.
For the fiscal year ended April 30, 2016, the banks industry contributed most significantly to the Fund’s return, followed by the capital markets industry. There were no detracting industries.
Positions that contributed most significantly to the Fund’s return included HSBC Holdings PLC, 8.00%, Series 2, a commercial banks company (portfolio average weight of 7.26%), and Barclays Bank PLC, 8.13%, Series 5, a commercial banks company (portfolio average weight of 4.02%). Positions that detracted most significantly from the Fund’s return included MetLife, Inc., 6.50%, Series B, an insurance company (no longer held at fiscal year-end), and ING Groep NV, 7.38%, a banks company (portfolio average weight of 0.77%).
Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Banks | 71.3 | |||
Capital Markets | 15.8 | |||
Insurance | 7.5 | |||
Consumer Finance | 5.3 | |||
Money Market Fund Plus Other Assets Less Liabilities | 0.1 | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
HSBC Holdings PLC, 8.00%, Series 2 | 6.8 | |||
Barclays Bank PLC, 8.13%, Series 5 | 3.8 | |||
Wells Fargo & Co., 8.00%, Series J | 3.2 | |||
BB&T Corp., 5.63%, Series E | 2.8 | |||
PNC Financial Services Group, Inc. (The), 6.13%, Series P | 2.7 | |||
HSBC Holdings PLC, 8.13% | 2.5 | |||
Wells Fargo & Co., 5.85% | 2.3 | |||
ING Groep NV, 6.38% | 2.2 | |||
JPMorgan Chase & Co., 6.15%, Series BB | 2.0 | |||
JPMorgan Chase & Co., 6.13%, Series Y | 1.9 | |||
Total | 30.2 |
* | Excluding money market fund holdings. |
| 10 |
|
PowerShares Financial Preferred Portfolio (PGF) (continued)
Growth of a $10,000 Investment Since Inception†
Fund Performance History as of April 30, 2016
1 Year | 3 Years Average | 3 Years Cumulative | 5 Years Average | 5 Years Cumulative | Fund Inception† | |||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||
Wells Fargo® Hybrid & Preferred Securities Financial Index | 8.48 | % | 6.69 | % | 21.44 | % | 7.63 | % | 44.45 | % | 5.17 | % | 60.67 | % | ||||||||||||||||
S&P U.S. Preferred Stock Index | 4.69 | 5.53 | 17.54 | 6.56 | 37.38 | 4.95 | 57.52 | |||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||
NAV Return | 8.01 | 6.42 | 20.52 | 7.09 | 40.87 | 4.20 | 47.30 | |||||||||||||||||||||||
Market Price Return | 8.12 | 6.42 | 20.53 | 7.11 | 40.96 | 4.14 | 46.43 |
Fund Inception: December 1, 2006
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.63%. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund
at NAV and Market 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 and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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.
† | Fund, Index and Benchmark Index returns are based on the inception date of the Fund. |
| 11 |
|
PEY | Manager’s Analysis | |
PowerShares High Yield Equity Dividend AchieversTM Portfolio (PEY) |
As an index fund, the PowerShares High Yield Equity Dividend AchieversTM Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the NASDAQ US Dividend AchieversTM 50 Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies that comprise the Index.
The NASDAQ OMX Group, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its guidelines and mandated procedures, the Index Provider includes common stocks in the Index, principally on the basis of dividend yield and consistent growth in dividends. To become eligible for inclusion in the Index, a security must be included in the NASDAQ US Broad Dividend AchieversTM Index, have a minimum market capitalization of $1 billion, and cannot be a real estate investment trust or limited partnership. For the annual reconstitution, securities that meet the eligibility criteria as of the end of December are ranked in descending order based on their trailing 12-month dividend yield as of the last trading day in February. The top 50 securities are included in the Index and weighted according to a modified dividend yield weighted methodology. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned 14.99%. On a net asset value (“NAV”) basis, the Fund returned 14.92%. During the same time period, the Index returned 15.56%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.
During this same time period, the Dow Jones U.S. Select Dividend Index (the “Benchmark Index”) returned 8.85%. The Benchmark Index is an unmanaged index weighted by indicated dividend yield based on the average performance of approximately 99 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a similar dividend-weighted index.
The performance of the Fund differed from the Benchmark Index in part because the selection methodology of the Benchmark Index differs from the selection methodology of the Index that the Fund tracks.
Relative to the Benchmark Index, the Fund was most overweight in the oil, gas & consumable fuels industry and most underweight in the electric utilities industry during the fiscal year ended April 30, 2016. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to selection within and allocation to the gas utilities industry.
For the fiscal year ended April 30, 2016, the gas utilities industry contributed most significantly to the Fund’s return, followed by the tobacco and electric utilities industries, respectively. The personal products industry detracted most significantly from the Fund’s return, followed by the specialty retail and oil, gas & consumable fuels industries, respectively.
Positions that contributed most significantly to the Fund’s return included Murphy Oil Corp., an energy company (portfolio average weight of 1.17%), and Piedmont Natural Gas Co., Inc., a utilities company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included Williams Cos., Inc. (The), an energy company (no longer held at fiscal year-end), and ConocoPhillips, an energy company (no longer held at fiscal year-end).
| 12 |
|
PowerShares High Yield Equity Dividend AchieversTM Portfolio (PEY) (continued)
Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Oil, Gas & Consumable Fuels | 18.4 | |||
Banks | 10.9 | |||
Multi-Utilities | 10.6 | |||
Electric Utilities | 5.8 | |||
Tobacco | 5.6 | |||
Gas Utilities | 5.1 | |||
Semiconductors & Semiconductor Equipment | 4.9 | |||
Food Products | 4.5 | |||
Diversified Telecommunication Services | 4.0 | |||
Machinery | 4.0 | |||
Metals & Mining | 3.8 | |||
Insurance | 3.7 | |||
Capital Markets | 3.7 | |||
Energy Equipment & Services | 2.7 | |||
Personal Products | 2.5 | |||
Media | 2.1 | |||
IT Services | 1.8 | |||
Electrical Equipment | 1.8 | |||
Road & Rail | 1.6 | |||
Household Products | 1.4 | |||
Specialty Retail | 1.1 | |||
Money Market Fund Plus Other Assets Less Liabilities | (0.0) | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
Murphy Oil Corp. | 7.0 | |||
ONEOK, Inc. | 5.2 | |||
Helmerich & Payne, Inc. | 2.7 | |||
Chevron Corp. | 2.6 | |||
CenterPoint Energy, Inc. | 2.6 | |||
Vector Group Ltd. | 2.5 | |||
Nu Skin Enterprises, Inc., Class A | 2.5 | |||
Cullen/Frost Bankers, Inc. | 2.4 | |||
AT&T, Inc. | 2.2 | |||
Caterpillar, Inc. | 2.1 | |||
Total | 31.8 |
* | Excluding money market fund holdings. |
| 13 |
|
PowerShares High Yield Equity Dividend AchieversTM Portfolio (PEY) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2016
1 Year | 3 Years Average | 3 Years Cumulative | 5 Years Average | 5 Years Cumulative | 10 Years Average | 10 Years Cumulative | Fund Inception† | |||||||||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||||||||||
NASDAQ US Dividend Achievers™ 50 Index | 15.56 | % | 16.05 | % | 56.29 | % | 15.33 | % | 104.01 | % | 4.66 | % | 57.65 | % | 4.71 | % | 68.97 | % | ||||||||||||||||||||
Dow Jones U.S. Select Dividend Index | 8.85 | 11.82 | 39.80 | 13.06 | 84.77 | 6.96 | 95.93 | 7.24 | 121.69 | |||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||
NAV Return | 14.92 | 15.45 | 53.88 | 14.70 | 98.53 | 4.21 | 51.05 | 4.25 | 60.65 | |||||||||||||||||||||||||||||
Market Price Return | 14.99 | 15.51 | 54.12 | 14.71 | 98.64 | 4.23 | 51.34 | 4.26 | 60.86 |
Fund Inception: December 9, 2004
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.54%. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund
at NAV and Market 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 and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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.
† | Fund, Index and Benchmark Index returns are based on the inception date of the Fund. |
| 14 |
|
PID | Manager’s Analysis | |
PowerShares International Dividend Achievers™ Portfolio (PID) |
As an index fund, the PowerShares International Dividend AchieversTM Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the NASDAQ 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.
NASDAQ OMX Group, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. The Index is designed to track the performance of dividend paying American Depositary Receipts (“ADRs”) and Global Depositary Receipts (“GDRs”) that are listed on the London Stock Exchange (“LSE”) or the London International Exchange, in addition to ADRs and non-US common or ordinary stock trading on the NASDAQ, NYSE or NYSE MKT. In order to become eligible for inclusion in the Index, an issuer must (i) be listed on NASDAQ, NYSE or NYSE MKT; (ii) be incorporated outside of the U.S.; (iii) have raised its annual regular cash dividend payments for at least each of the last five consecutive years; and (iv) have a minimum three-month average daily trading volume of $1 million. Strictly in accordance with its guidelines and mandated procedures, the Index Provider calculates the total annual regular dividend payment using the last available ex-dividend date for the previous calendar or fiscal year. The Index Provider will rebalance the Index on a quarterly basis using a dividend yield weighted methodology that incorporates the trailing 12-month dividend yield of each issuer as compared to the dividend yield of all issuers in the Index as of the last trading day in February, May, August and November. At the rebalance date, no single issuer may exceed 4% of the Index, and the Index Provider will redistribute the excess amounts proportionately from larger issuers until no issuer’s weight exceeds 4% of the Index. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned (17.63)%. On a net asset value (“NAV”) basis, the Fund returned (17.53)%. During the same time period, the Index returned (17.00)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.
During this same time period, the MSCI EAFE® Index (the “Benchmark Index”) returned (9.32)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 930 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a broad-based market benchmark. The Benchmark Index also was selected for its recognition in the marketplace, and its performance comparison is
a useful measure for investors as a broad representation of the overall international developed equity markets.
The performance of the Fund differed from the Benchmark Index in part because the Fund tracks the Index, which employs a dividend yield weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.
Relative to the Benchmark Index, the Fund was most overweight in the energy sector and most underweight in the financials sector during the fiscal year ended April 30, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to stock selection in the energy and industrial sectors.
For the fiscal year ended April 30, 2016, the telecommunication services sector contributed most significantly to the Fund’s return, followed by the materials sector. The energy sector detracted most significantly from the Fund’s return, followed by the financials and industrials sectors, respectively.
Positions that contributed most significantly to the Fund’s return included Syngenta AG Sponsored ADR, a materials company (no longer held at fiscal year-end), and Franco-Nevada Corp., a materials company (portfolio average weight of 0.60%). Positions that detracted most significantly from the Fund’s return included Teekay Offshore Partners LP, an energy company (portfolio average weight of 3.26%), and Ensco PLC, an energy company (no longer held at fiscal year-end).
| 15 |
|
PowerShares International Dividend Achievers™ Portfolio (PID) (continued)
Sector Breakdown (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Energy | 27.4 | |||
Materials | 17.4 | |||
Financials | 17.4 | |||
Consumer Discretionary | 9.0 | |||
Telecommunication Services | 7.1 | |||
Industrials | 7.0 | |||
Health Care | 5.2 | |||
Consumer Staples | 4.0 | |||
Information Technology | 3.8 | |||
Utilities | 1.7 | |||
Money Market Fund Plus Other Assets Less Liabilities | 0.0 | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
Teekay Offshore Partners LP | 6.8 | |||
Teekay LNG Partners LP | 4.5 | |||
BHP Billiton PLC ADR | 4.4 | |||
Rio Tinto PLC ADR | 4.2 | |||
BHP Billiton Ltd. ADR | 4.0 | |||
BP PLC ADR | 2.5 | |||
Potash Corp. of Saskatchewan, Inc. | 2.4 | |||
Seaspan Corp. | 2.3 | |||
Banco Latinoamericano de Comercio Exterior SA, Class E | 2.3 | |||
HSBC Holdings PLC ADR | 2.2 | |||
Total | 35.6 |
* | Excluding money market fund holdings. |
| 16 |
|
PowerShares International Dividend Achievers™ Portfolio (PID) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2016
1 Year | 3 Years Average | 3 Years Cumulative | 5 Years Average | 5 Years Cumulative | 10 Years Average | 10 Years Cumulative | Fund Inception†† | |||||||||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||||||||||
NASDAQ International Dividend AchieversTM Index | (17.00 | )% | (1.66 | )% | (4.90 | )% | 1.03 | % | 5.24 | % | 2.47 | % | 27.69 | % | 3.68 | % | 46.84 | % | ||||||||||||||||||||
MSCI EAFE® Index (Net)† | (9.32 | ) | 1.48 | 4.49 | 1.69 | 8.75 | 1.61 | 17.37 | 3.37 | 42.23 | ||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||
NAV Return | (17.53 | ) | (2.17 | ) | (6.37 | ) | 0.38 | 1.90 | 1.78 | 19.31 | 2.98 | 36.62 | ||||||||||||||||||||||||||
Market Price Return | (17.63 | ) | (2.27 | ) | (6.66 | ) | 0.31 | 1.58 | 1.77 | 19.22 | 2.97 | 36.50 |
Fund Inception: September 15, 2005
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.55%. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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 and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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.
† | Reflects reinvested dividends net of withholding taxes. |
†† | Fund, Index and Benchmark Index returns are based on the inception date of the Fund. |
| 17 |
|
Schedule of Investments(a)
PowerShares BuyBack AchieversTM Portfolio (PKW)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.0% | ||||||||
Consumer Discretionary—23.1% | ||||||||
13,887 | American Public Education, Inc.(b) | $ | 321,623 | |||||
21,604 | Asbury Automotive Group, Inc.(b) | 1,309,635 | ||||||
10,647 | Ascent Capital Group, Inc., Series A(b) | 160,450 | ||||||
25,834 | AutoZone, Inc.(b) | 19,768,952 | ||||||
141,534 | Bed Bath & Beyond, Inc.(b) | 6,683,235 | ||||||
42,986 | Big Lots, Inc. | 1,971,338 | ||||||
17,132 | Bob Evans Farms, Inc. | 780,191 | ||||||
12,819 | Bravo Brio Restaurant Group, Inc.(b) | 94,476 | ||||||
52,199 | Bright Horizons Family Solutions, Inc.(b) | 3,425,298 | ||||||
49,408 | Brinker International, Inc. | 2,288,579 | ||||||
13,696 | Build-A-Bear Workshop, Inc.(b) | 180,376 | ||||||
169,343 | CarMax, Inc.(b)(c) | 8,966,712 | ||||||
14,391 | Carriage Services, Inc. | 351,572 | ||||||
364,950 | CBS Corp., Class B | 20,404,355 | ||||||
115,670 | Chico’s FAS, Inc. | 1,458,599 | ||||||
16,581 | Children’s Place, Inc. (The) | 1,291,826 | ||||||
26,525 | Conn’s, Inc.(b)(c) | 364,454 | ||||||
63,168 | Crocs, Inc.(b) | 527,453 | ||||||
128,775 | Dana Holding Corp. | 1,665,061 | ||||||
28,058 | Deckers Outdoor Corp.(b) | 1,622,033 | ||||||
60,309 | Diamond Resorts International, Inc.(b)(c) | 1,279,154 | ||||||
27,608 | Dillard’s, Inc., Class A | 1,944,984 | ||||||
79,206 | Dunkin’ Brands Group, Inc. | 3,683,079 | ||||||
38,378 | Finish Line, Inc. (The), Class A | 757,966 | ||||||
41,640 | Fossil Group, Inc.(b) | 1,686,420 | ||||||
343,602 | Gap, Inc. (The)(c) | 7,964,694 | ||||||
18,439 | Genesco, Inc.(b) | 1,275,610 | ||||||
64,233 | GNC Holdings, Inc., Class A | 1,564,716 | ||||||
505,696 | Groupon, Inc., Class A(b)(c) | 1,830,620 | ||||||
194,154 | H&R Block, Inc. | 3,929,677 | ||||||
158,721 | Harley-Davidson, Inc. | 7,591,625 | ||||||
19,750 | Hibbett Sports, Inc.(b)(c) | 712,975 | ||||||
106,422 | Houghton Mifflin Harcourt Co.(b) | 2,182,715 | ||||||
22,515 | Hyatt Hotels Corp., Class A(b) | 1,078,018 | ||||||
30,006 | Jack in the Box, Inc. | 2,026,905 | ||||||
13,054 | Jamba, Inc.(b)(c) | 169,571 | ||||||
160,207 | Kohl’s Corp. | 7,097,170 | ||||||
776,456 | Lowe’s Cos., Inc. | 59,026,185 | ||||||
269,736 | Macy’s, Inc. | 10,678,848 | ||||||
219,310 | Marriott International, Inc., Class A(c) | 15,371,438 | ||||||
647,379 | McDonald’s Corp. | 81,886,970 | ||||||
14,101 | Movado Group, Inc. | 397,789 | ||||||
4,589 | NACCO Industries, Inc., Class A | 273,137 | ||||||
14,374 | Outerwall, Inc.(c) | 593,790 | ||||||
19,895 | Panera Bread Co., Class A(b) | 4,267,279 | ||||||
72,389 | Pier 1 Imports, Inc. | 498,760 | ||||||
299,688 | PulteGroup, Inc. | 5,511,262 | ||||||
40,919 | Regis Corp.(b) | 559,363 | ||||||
82,215 | Scripps Networks Interactive, Inc., Class A | 5,126,105 | ||||||
168,482 | Service Corp. International | 4,493,415 | ||||||
30,156 | Shutterfly, Inc.(b) | 1,386,573 | ||||||
4,409,010 | Sirius XM Holdings, Inc.(b)(c) | 17,415,590 | ||||||
42,007 | Sonic Corp. | 1,443,781 | ||||||
49,761 | Tenneco, Inc.(b) | 2,652,261 | ||||||
968,536 | Twenty-First Century Fox, Inc., Class A | 29,307,899 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Consumer Discretionary (continued) | ||||||||
12,443 | Universal Electronics, Inc.(b) | $ | 826,340 | |||||
101,575 | Urban Outfitters, Inc.(b) | 3,079,754 | ||||||
32,535 | Vera Bradley, Inc.(b) | 570,664 | ||||||
33,626 | Visteon Corp. | 2,678,983 | ||||||
22,311 | Vitamin Shoppe, Inc.(b) | 610,652 | ||||||
233,611 | Wendy’s Co. (The) | 2,537,015 | ||||||
97,077 | Wyndham Worldwide Corp. | 6,887,613 | ||||||
23,927 | ZAGG, Inc.(b) | 191,655 | ||||||
22,053 | Zumiez, Inc.(b)(c) | 370,049 | ||||||
|
| |||||||
379,055,287 | ||||||||
|
| |||||||
Consumer Staples—5.4% | ||||||||
508,002 | Archer-Daniels-Midland Co. | 20,289,600 | ||||||
44,446 | Fresh Del Monte Produce, Inc. | 1,922,734 | ||||||
14,438 | MGP Ingredients, Inc. | 381,452 | ||||||
1,347,219 | Mondelez International, Inc., Class A | 57,876,528 | ||||||
280,855 | Whole Foods Market, Inc. | 8,167,264 | ||||||
|
| |||||||
88,637,578 | ||||||||
|
| |||||||
Energy—2.8% | ||||||||
152,777 | HollyFrontier Corp. | 5,438,861 | ||||||
325,140 | National Oilwell Varco, Inc. | 11,718,046 | ||||||
84,660 | Oceaneering International, Inc. | 3,102,789 | ||||||
5,676 | REX American Resources Corp.(b) | 308,604 | ||||||
14,852 | SEACOR Holdings, Inc.(b) | 872,852 | ||||||
40,638 | Tidewater, Inc.(c) | 355,989 | ||||||
406,448 | Valero Energy Corp. | 23,927,594 | ||||||
|
| |||||||
45,724,735 | ||||||||
|
| |||||||
Financials—17.9% | ||||||||
362,550 | Aflac, Inc. | 25,005,073 | ||||||
327,302 | Allstate Corp. (The) | 21,290,995 | ||||||
980,969 | American International Group, Inc. | 54,757,690 | ||||||
145,622 | Ameriprise Financial, Inc. | 13,965,150 | ||||||
84,229 | Anworth Mortgage Asset Corp. REIT | 397,561 | ||||||
105,627 | Arch Capital Group Ltd. (Bermuda)(b) | 7,445,647 | ||||||
31,737 | ARMOUR Residential REIT, Inc. REIT | 675,363 | ||||||
54,946 | Assurant, Inc. | 4,646,783 | ||||||
117,524 | Assured Guaranty Ltd. | 3,040,346 | ||||||
80,651 | Axis Capital Holdings Ltd. | 4,296,279 | ||||||
26,838 | Capital Bank Financial Corp., Class A | 811,313 | ||||||
21,172 | Cash America International, Inc. | 782,517 | ||||||
27,108 | Central Pacific Financial Corp. | 632,701 | ||||||
162,407 | Chimera Investment Corp. REIT | 2,306,179 | ||||||
155,053 | CNO Financial Group, Inc. | 2,848,324 | ||||||
92,630 | Cowen Group, Inc., Class A(b) | 322,816 | ||||||
358,367 | Discover Financial Services | 20,165,311 | ||||||
42,354 | Dynex Capital, Inc. REIT | 275,301 | ||||||
6,389 | FBR & Co. | 118,196 | ||||||
150,217 | Fulton Financial Corp. | 2,101,536 | ||||||
68,970 | Hancock Holding Co. | 1,791,151 | ||||||
343,201 | Hartford Financial Services Group, Inc. (The) | 15,231,260 | ||||||
38,465 | Hersha Hospitality Trust REIT | 741,990 | ||||||
15,889 | HomeTrust Bancshares, Inc.(b) | 294,741 | ||||||
78,627 | KCG Holdings, Inc., Class A(b) | 1,077,190 | ||||||
93,188 | Legg Mason, Inc. | 2,992,267 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 18 |
|
PowerShares BuyBack AchieversTM Portfolio (PKW) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
293,306 | Loews Corp. | $ | 11,638,382 | |||||
118,772 | MBIA, Inc.(b) | 926,422 | ||||||
168,611 | Moody’s Corp. | 16,139,445 | ||||||
85,097 | MSCI, Inc. | 6,462,266 | ||||||
25,438 | National Bank Holdings Corp., Class A | 508,506 | ||||||
296,602 | Navient Corp. | 4,054,549 | ||||||
41,778 | Northfield Bancorp, Inc. | 662,599 | ||||||
125,507 | Piedmont Office Realty Trust, Inc., Class A REIT | 2,498,844 | ||||||
13,925 | Piper Jaffray Cos.(b) | 580,812 | ||||||
41,587 | Primerica, Inc. | 2,061,052 | ||||||
45,925 | ProAssurance Corp. | 2,192,000 | ||||||
1,104,929 | Regions Financial Corp. | 10,364,234 | ||||||
64,327 | St. Joe Co. (The)(b) | 1,083,910 | ||||||
57,833 | Talmer Bancorp, Inc., Class A | 1,121,960 | ||||||
255,212 | Travelers Cos., Inc. (The) | 28,047,799 | ||||||
73,015 | Validus Holdings Ltd. | 3,365,261 | ||||||
180,199 | Voya Financial, Inc. | 5,851,061 | ||||||
26,827 | Walker & Dunlop, Inc.(b) | 591,535 | ||||||
79,220 | Washington Federal, Inc. | 1,924,254 | ||||||
25,278 | Waterstone Financial, Inc. | 354,398 | ||||||
4,805 | White Mountains Insurance Group Ltd. | 3,988,150 | ||||||
7,720 | World Acceptance Corp.(b)(c) | 334,971 | ||||||
|
| |||||||
292,766,090 | ||||||||
|
| |||||||
Health Care—8.9% | ||||||||
195,036 | AmerisourceBergen Corp. | 16,597,564 | ||||||
1,578 | Atrion Corp. | 626,939 | ||||||
189,194 | Biogen, Inc.(b) | 52,026,458 | ||||||
11,241 | Cutera, Inc.(b) | 131,070 | ||||||
547,496 | Express Scripts Holding Co.(b) | 40,366,880 | ||||||
342,415 | HCA Holdings, Inc.(b) | 27,605,497 | ||||||
21,384 | Magellan Health, Inc.(b) | 1,506,717 | ||||||
80,388 | MEDNAX, Inc.(b) | 5,730,860 | ||||||
26,403 | PharMerica Corp.(b) | 624,167 | ||||||
20,489 | Triple-S Management Corp., Class B(b) | 533,534 | ||||||
|
| |||||||
145,749,686 | ||||||||
|
| |||||||
Industrials—23.0% | ||||||||
30,064 | AAR Corp. | 722,739 | ||||||
92,563 | ACCO Brands Corp.(b) | 883,051 | ||||||
50,964 | Actuant Corp., Class A | 1,361,248 | ||||||
71,341 | AGCO Corp. | 3,814,603 | ||||||
521,726 | American Airlines Group, Inc. | 18,098,675 | ||||||
17,030 | American Railcar Industries, Inc.(c) | 698,400 | ||||||
6,204 | American Science & Engineering, Inc. | 177,745 | ||||||
82,437 | Avis Budget Group, Inc.(b) | 2,069,169 | ||||||
563,288 | Boeing Co. (The) | 75,931,222 | ||||||
92,631 | Cintas Corp. | 8,316,411 | ||||||
14,191 | CIRCOR International, Inc. | 801,082 | ||||||
7,724 | CRA International, Inc.(b) | 167,611 | ||||||
272,817 | Deere & Co.(c) | 22,946,638 | ||||||
673,559 | Delta Air Lines, Inc. | 28,067,204 | ||||||
55,679 | DigitalGlobe, Inc.(b) | 1,233,847 | ||||||
134,208 | Dover Corp. | 8,817,466 | ||||||
556,418 | Emerson Electric Co. | 30,397,115 | ||||||
18,842 | EnPro Industries, Inc. | 1,103,764 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Industrials (continued) | ||||||||
25,635 | Esterline Technologies Corp.(b) | $ | 1,760,099 | |||||
120,443 | Fluor Corp. | 6,583,414 | ||||||
47,709 | Graco, Inc. | 3,739,908 | ||||||
41,602 | Griffon Corp. | 657,728 | ||||||
312,210 | Illinois Tool Works, Inc. | 32,632,189 | ||||||
106,018 | Jacobs Engineering Group, Inc.(b) | 4,726,282 | ||||||
24,600 | Kforce, Inc. | 467,646 | ||||||
46,551 | Kirby Corp.(b) | 2,970,885 | ||||||
67,072 | L-3 Communications Holdings, Inc. | 8,821,980 | ||||||
38,675 | Lennox International, Inc. | 5,219,191 | ||||||
60,033 | Lincoln Electric Holdings, Inc. | 3,762,268 | ||||||
9,634 | Lindsay Corp.(c) | 736,616 | ||||||
62,457 | ManpowerGroup, Inc. | 4,811,063 | ||||||
288,009 | Masco Corp. | 8,844,756 | ||||||
20,637 | McGrath RentCorp | 503,130 | ||||||
79,049 | Meritor, Inc.(b) | 671,916 | ||||||
28,867 | Moog, Inc., Class A(b) | 1,410,442 | ||||||
49,307 | Nordson Corp. | 3,783,326 | ||||||
156,550 | Northrop Grumman Corp. | 32,290,003 | ||||||
63,255 | Oshkosh Corp. | 3,090,007 | ||||||
6,163 | P.A.M. Transportation Services, Inc.(b)(c) | 152,288 | ||||||
116,890 | Parker-Hannifin Corp. | 13,561,578 | ||||||
9,827 | Powell Industries, Inc. | 305,816 | ||||||
29,606 | Quanex Building Products Corp. | 557,777 | ||||||
132,294 | Quanta Services, Inc.(b) | 3,138,014 | ||||||
50,721 | Tetra Tech, Inc. | 1,491,197 | ||||||
68,683 | Timken Co. (The) | 2,447,175 | ||||||
77,888 | United Rentals, Inc.(b) | 5,213,044 | ||||||
24,579 | Universal Logistics Holdings, Inc. | 350,497 | ||||||
19,720 | Valmont Industries, Inc. | 2,768,294 | ||||||
53,274 | W.W. Grainger, Inc.(c) | 12,493,818 | ||||||
36,510 | WESCO International, Inc.(b)(c) | 2,146,423 | ||||||
|
| |||||||
377,716,760 | ||||||||
|
| |||||||
Information Technology—13.7% | ||||||||
42,599 | ADTRAN, Inc. | 823,013 | ||||||
13,660 | Alliance Fiber Optic Products, Inc.(b) | 252,983 | ||||||
978,293 | Applied Materials, Inc. | 20,025,658 | ||||||
72,148 | Aspen Technology, Inc.(b) | 2,743,789 | ||||||
951,488 | Corning, Inc. | 17,764,281 | ||||||
87,325 | Cree, Inc.(b) | 2,140,336 | ||||||
29,108 | DST Systems, Inc. | 3,512,753 | ||||||
29,111 | Ebix, Inc. | 1,400,821 | ||||||
22,415 | EMCORE Corp.(b) | 127,766 | ||||||
192,883 | Fiserv, Inc.(b) | 18,848,527 | ||||||
71,240 | Gartner, Inc.(b) | 6,209,991 | ||||||
32,110 | Insight Enterprises, Inc.(b) | 793,438 | ||||||
222,199 | Intuit, Inc. | 22,417,657 | ||||||
331,026 | Juniper Networks, Inc. | 7,746,008 | ||||||
60,878 | Kulicke & Soffa Industries, Inc. (Singapore)(b) | 652,612 | ||||||
151,136 | Motorola Solutions, Inc. | 11,363,916 | ||||||
250,112 | NetApp, Inc. | 5,912,648 | ||||||
28,048 | NETGEAR, Inc.(b) | 1,189,235 | ||||||
356,541 | ON Semiconductor Corp.(b) | 3,376,443 | ||||||
29,115 | Plantronics, Inc. | 1,119,472 | ||||||
1,293,363 | QUALCOMM, Inc. | 65,340,699 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 19 |
|
PowerShares BuyBack AchieversTM Portfolio (PKW) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Information Technology (continued) | ||||||||
112,569 | Rackspace Hosting, Inc.(b) | $ | 2,574,453 | |||||
72,065 | Rovi Corp.(b) | 1,269,785 | ||||||
26,843 | Rudolph Technologies, Inc.(b) | 372,312 | ||||||
22,681 | ScanSource, Inc.(b) | 922,663 | ||||||
30,357 | Tech Data Corp.(b) | 2,085,222 | ||||||
111,538 | Teradata Corp.(b) | 2,821,911 | ||||||
176,495 | Teradyne, Inc. | 3,337,521 | ||||||
22,947 | Ultratech, Inc.(b) | 497,720 | ||||||
94,711 | VeriSign, Inc.(b)(c) | 8,183,030 | ||||||
876,351 | Xerox Corp. | 8,412,970 | ||||||
|
| |||||||
224,239,633 | ||||||||
|
| |||||||
Materials—4.3% | ||||||||
40,520 | Carpenter Technology Corp. | 1,434,813 | ||||||
57,189 | Chemtura Corp.(b) | 1,592,714 | ||||||
15,042 | Clearwater Paper Corp.(b) | 898,609 | ||||||
16,688 | Innophos Holdings, Inc. | 616,788 | ||||||
26,504 | Kraton Performance Polymers, Inc.(b) | 601,906 | ||||||
380,915 | Monsanto Co. | 35,684,117 | ||||||
304,994 | Mosaic Co. (The) | 8,536,782 | ||||||
73,807 | PolyOne Corp. | 2,655,576 | ||||||
62,177 | Reliance Steel & Aluminum Co. | 4,599,233 | ||||||
77,428 | Resolute Forest Products, Inc.(b) | 449,857 | ||||||
169,572 | Sealed Air Corp. | 8,030,930 | ||||||
38,854 | Sensient Technologies Corp. | 2,612,931 | ||||||
53,023 | Worthington Industries, Inc. | 2,001,618 | ||||||
|
| |||||||
69,715,874 | ||||||||
|
| |||||||
Telecommunication Services—0.0% | ||||||||
30,691 | General Communication, Inc., Class A(b) | 518,678 | ||||||
|
| |||||||
Utilities—0.9% | ||||||||
570,796 | AES Corp. (The) | 6,370,083 | ||||||
308,580 | Calpine Corp.(b) | 4,869,393 | ||||||
273,300 | NRG Energy, Inc. | 4,126,830 | ||||||
|
| |||||||
15,366,306 | ||||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $1,571,533,432) | 1,639,490,627 | |||||||
|
| |||||||
Money Market Fund—0.1% | ||||||||
861,583 | Invesco Premier Portfolio—Institutional Class, 0.39%(d) (Cost $861,583) | 861,583 | ||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $1,572,395,015)—100.1% | 1,640,352,210 | |||||||
|
| |||||||
Number of Shares | Value | |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—4.2% | ||||||||
70,119,602 | Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(d)(e) (Cost $70,119,602) | $ | 70,119,602 | |||||
|
| |||||||
Total Investments (Cost $1,642,514,617)—104.3% | 1,710,471,812 | |||||||
Other assets less liabilities—(4.3)% | (71,037,587 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 1,639,434,225 | ||||||
|
|
Investment Abbreviations:
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | Non-income producing security. |
(c) | All or a portion of this security was out on loan at April 30, 2016. |
(d) | The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
(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. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 20 |
|
Schedule of Investments(a)
PowerShares Dividend AchieversTM Portfolio (PFM)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.0% | ||||||||
Consumer Discretionary—7.9% | ||||||||
3,141 | Aaron’s, Inc. | $ | 82,326 | |||||
14,011 | Best Buy Co., Inc. | 449,473 | ||||||
902 | Bob Evans Farms, Inc. | 41,077 | ||||||
1,038 | Cracker Barrel Old Country Store, Inc. | 151,974 | ||||||
17,389 | Gap, Inc. (The) | 403,077 | ||||||
6,469 | Genuine Parts Co. | 620,830 | ||||||
5,399 | Hasbro, Inc. | 456,971 | ||||||
1,154 | International Speedway Corp., Class A | 38,647 | ||||||
2,098 | John Wiley & Sons, Inc., Class A | 104,040 | ||||||
5,867 | Leggett & Platt, Inc. | 289,184 | ||||||
39,372 | Lowe’s Cos., Inc. | 2,993,059 | ||||||
39,009 | McDonald’s Corp. | 4,934,248 | ||||||
1,631 | Meredith Corp. | 83,687 | ||||||
1,391 | Monro Muffler Brake, Inc. | 96,285 | ||||||
58,404 | NIKE, Inc., Class B | 3,442,332 | ||||||
2,810 | Polaris Industries, Inc. | 275,043 | ||||||
17,523 | Ross Stores, Inc. | 994,956 | ||||||
1,518 | StoneMor Partners LP | 37,039 | ||||||
26,056 | Target Corp. | 2,071,452 | ||||||
5,543 | Tiffany & Co. | 395,493 | ||||||
28,968 | TJX Cos., Inc. (The) | 2,196,354 | ||||||
18,445 | VF Corp. | 1,162,957 | ||||||
17,683 | Yum! Brands, Inc. | 1,406,860 | ||||||
|
| |||||||
22,727,364 | ||||||||
|
| |||||||
Consumer Staples—23.6% | ||||||||
84,711 | Altria Group, Inc. | 5,312,227 | ||||||
1,209 | Andersons, Inc. (The) | 40,514 | ||||||
25,695 | Archer-Daniels-Midland Co. | 1,026,258 | ||||||
5,054 | Brown-Forman Corp., Class B | 486,801 | ||||||
6,100 | Bunge Ltd. | 381,250 | ||||||
1,685 | Casey’s General Stores, Inc. | 188,720 | ||||||
5,613 | Church & Dwight Co., Inc. | 520,325 | ||||||
5,601 | Clorox Co. (The) | 701,413 | ||||||
187,319 | Coca-Cola Co. (The) | 8,391,891 | ||||||
38,625 | Colgate-Palmolive Co. | 2,739,285 | ||||||
19,027 | Costco Wholesale Corp. | 2,818,470 | ||||||
47,527 | CVS Health Corp. | 4,776,463 | ||||||
9,185 | Flowers Foods, Inc. | 175,985 | ||||||
25,672 | General Mills, Inc. | 1,574,720 | ||||||
22,864 | Hormel Foods Corp. | 881,407 | ||||||
807 | J & J Snack Foods Corp. | 81,612 | ||||||
5,178 | JM Smucker Co. (The) | 657,502 | ||||||
15,154 | Kellogg Co. | 1,163,979 | ||||||
15,615 | Kimberly-Clark Corp. | 1,954,842 | ||||||
1,183 | Lancaster Colony Corp. | 137,820 | ||||||
4,988 | McCormick & Co., Inc. | 467,775 | ||||||
2,411 | Nu Skin Enterprises, Inc., Class A | 98,296 | ||||||
62,537 | PepsiCo, Inc. | 6,438,810 | ||||||
117,015 | Procter & Gamble Co. (The) | 9,375,242 | ||||||
61,755 | Reynolds American, Inc. | 3,063,048 | ||||||
24,428 | Sysco Corp. | 1,125,398 | ||||||
1,658 | Tootsie Roll Industries, Inc., Class A | 59,091 | ||||||
983 | Universal Corp. | 53,623 | ||||||
5,352 | Vector Group Ltd. | 115,603 | ||||||
46,673 | Walgreens Boots Alliance, Inc. | 3,700,235 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Consumer Staples (continued) | ||||||||
138,532 | Wal-Mart Stores, Inc. | $ | 9,263,635 | |||||
|
| |||||||
67,772,240 | ||||||||
|
| |||||||
Energy—10.7% | ||||||||
3,218 | Alliance Resource Partners LP | 50,362 | ||||||
5,613 | Buckeye Partners LP | 404,136 | ||||||
81,476 | Chevron Corp. | 8,325,218 | ||||||
87,451 | Enterprise Products Partners LP | 2,334,067 | ||||||
23,791 | EOG Resources, Inc. | 1,965,612 | ||||||
135,239 | Exxon Mobil Corp. | 11,955,128 | ||||||
4,753 | Genesis Energy LP | 154,092 | ||||||
4,670 | Helmerich & Payne, Inc. | 308,780 | ||||||
2,534 | Holly Energy Partners LP | 86,713 | ||||||
9,855 | Magellan Midstream Partners LP | 710,250 | ||||||
7,443 | Murphy Oil Corp. | 266,013 | ||||||
33,048 | Occidental Petroleum Corp. | 2,533,129 | ||||||
9,209 | ONEOK Partners LP | 326,551 | ||||||
9,085 | ONEOK, Inc. | 328,423 | ||||||
17,208 | Plains All American Pipeline LP | 394,752 | ||||||
11,799 | Sunoco Logistics Partners LP | 345,475 | ||||||
2,783 | TC PipeLines LP | 152,425 | ||||||
696 | TransMontaigne Partners LP | 28,466 | ||||||
|
| |||||||
30,669,592 | ||||||||
|
| |||||||
Financials—7.0% | ||||||||
1,118 | 1st Source Corp. | 38,504 | ||||||
18,172 | Aflac, Inc. | 1,253,323 | ||||||
3,542 | American Equity Investment Life Holding Co. | 49,588 | ||||||
3,746 | American Financial Group, Inc. | 258,886 | ||||||
7,311 | Ameriprise Financial, Inc. | 701,125 | ||||||
2,801 | Assurant, Inc. | 236,881 | ||||||
4,106 | Axis Capital Holdings Ltd. | 218,727 | ||||||
673 | BancFirst Corp. | 41,975 | ||||||
3,924 | Bank of the Ozarks, Inc. | 162,061 | ||||||
2,861 | BOK Financial Corp. | 172,175 | ||||||
5,993 | Brown & Brown, Inc. | 210,414 | ||||||
19,974 | Chubb Ltd. | 2,354,136 | ||||||
7,110 | Cincinnati Financial Corp. | 469,331 | ||||||
4,188 | Commerce Bancshares, Inc. | 196,082 | ||||||
1,895 | Community Bank System, Inc. | 74,985 | ||||||
757 | Community Trust Bancorp, Inc. | 27,154 | ||||||
2,682 | Cullen/Frost Bankers, Inc. | 171,621 | ||||||
6,338 | Digital Realty Trust, Inc. REIT | 557,617 | ||||||
4,992 | Eaton Vance Corp. | 172,374 | ||||||
3,660 | Equity LifeStyle Properties, Inc. REIT | 250,673 | ||||||
1,994 | Erie Indemnity Co., Class A | 188,214 | ||||||
2,830 | Essex Property Trust, Inc. REIT | 623,874 | ||||||
1,779 | FactSet Research Systems, Inc. | 268,184 | ||||||
3,013 | Federal Realty Investment Trust REIT | 458,217 | ||||||
25,641 | Franklin Resources, Inc. | 957,435 | ||||||
1,849 | Hanover Insurance Group, Inc. (The) | 158,570 | ||||||
20,142 | HCP, Inc. REIT | 681,404 | ||||||
478 | Infinity Property & Casualty Corp. | 38,317 | ||||||
18,017 | Invesco Ltd.(b) | 558,707 | ||||||
2,387 | Mercury General Corp. | 126,272 | ||||||
1,659 | National Health Investors, Inc. REIT | 112,961 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 21 |
|
PowerShares Dividend AchieversTM Portfolio (PFM) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Financials (continued) | ||||||||
6,098 | National Retail Properties, Inc. REIT | $ | 266,848 | |||||
11,338 | Old Republic International Corp. | 209,640 | ||||||
8,140 | OMEGA Healthcare Investors, Inc. REIT | 274,888 | ||||||
13,431 | People’s United Financial, Inc. | 208,181 | ||||||
3,023 | Prosperity Bancshares, Inc. | 159,524 | ||||||
10,840 | Realty Income Corp. REIT | 641,728 | ||||||
1,865 | RenaissanceRe Holdings Ltd. (Bermuda) | 206,847 | ||||||
1,884 | RLI Corp. | 117,147 | ||||||
11,478 | S&P Global, Inc. | 1,226,424 | ||||||
7,080 | SEI Investments Co. | 340,406 | ||||||
1,097 | Southside Bancshares, Inc. | 32,043 | ||||||
10,738 | T. Rowe Price Group, Inc. | 808,464 | ||||||
4,148 | Tanger Factory Outlet Centers, Inc. REIT | 145,512 | ||||||
647 | Tompkins Financial Corp. | 42,275 | ||||||
5,243 | Torchmark Corp. | 303,517 | ||||||
12,762 | Travelers Cos., Inc. (The) | 1,402,544 | ||||||
2,139 | UMB Financial Corp. | 119,249 | ||||||
3,013 | United Bankshares, Inc. | 116,573 | ||||||
577 | Universal Health Realty Income Trust REIT | 31,504 | ||||||
1,143 | Urstadt Biddle Properties, Inc., Class A REIT | 23,500 | ||||||
5,300 | W.R. Berkley Corp. | 296,800 | ||||||
15,365 | Welltower, Inc. REIT | 1,066,638 | ||||||
1,097 | Westamerica Bancorp. | 53,446 | ||||||
376 | Westwood Holdings Group, Inc. | 21,639 | ||||||
4,519 | WP Carey, Inc. REIT | 276,066 | ||||||
|
| |||||||
20,181,190 | ||||||||
|
| |||||||
Health Care—9.0% | ||||||||
63,741 | Abbott Laboratories | 2,479,525 | ||||||
8,889 | AmerisourceBergen Corp. | 756,454 | ||||||
79 | Atrion Corp. | 31,387 | ||||||
9,164 | Becton, Dickinson and Co. | 1,477,787 | ||||||
3,186 | C.R. Bard, Inc. | 675,974 | ||||||
14,249 | Cardinal Health, Inc. | 1,117,976 | �� | |||||
103,026 | Johnson & Johnson | 11,547,154 | ||||||
60,838 | Medtronic PLC | 4,815,328 | ||||||
648 | National Healthcare Corp. | 41,764 | ||||||
2,708 | Owens & Minor, Inc. | 98,544 | ||||||
6,196 | Perrigo Co. PLC | 598,967 | ||||||
3,716 | STERIS PLC | 262,610 | ||||||
16,137 | Stryker Corp. | 1,759,094 | ||||||
3,127 | West Pharmaceutical Services, Inc. | 222,642 | ||||||
|
| |||||||
25,885,206 | ||||||||
|
| |||||||
Industrials—13.7% | ||||||||
26,177 | 3M Co. | 4,381,506 | ||||||
3,231 | A.O. Smith Corp. | 249,498 | ||||||
2,418 | ABM Industries, Inc. | 77,787 | ||||||
2,016 | Brady Corp., Class A | 53,404 | ||||||
6,197 | C.H. Robinson Worldwide, Inc. | 439,801 | ||||||
2,774 | Carlisle Cos., Inc. | 282,671 | ||||||
25,195 | Caterpillar, Inc. | 1,958,155 | ||||||
4,675 | Cintas Corp. | 419,721 | ||||||
2,096 | CLARCOR, Inc. | 123,182 | ||||||
2,519 | Crane Co. | 139,981 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Industrials (continued) | ||||||||
41,671 | CSX Corp. | $ | 1,136,368 | |||||
7,542 | Cummins, Inc. | 882,640 | ||||||
13,643 | Deere & Co. | 1,147,513 | ||||||
5,735 | Donaldson Co., Inc. | 187,420 | ||||||
6,707 | Dover Corp. | 440,650 | ||||||
27,825 | Emerson Electric Co. | 1,520,080 | ||||||
7,879 | Expeditors International of Washington, Inc. | 390,877 | ||||||
12,483 | Fastenal Co. | 584,080 | ||||||
11,925 | FedEx Corp. | 1,968,937 | ||||||
2,002 | Franklin Electric Co., Inc. | 63,243 | ||||||
859 | G&K Services, Inc., Class A | 60,688 | ||||||
13,463 | General Dynamics Corp. | 1,891,821 | ||||||
1,129 | Gorman-Rupp Co. (The) | 31,939 | ||||||
2,381 | Graco, Inc. | 186,647 | ||||||
3,123 | Healthcare Services Group, Inc. | 118,206 | ||||||
15,739 | Illinois Tool Works, Inc. | 1,645,040 | ||||||
3,872 | ITT Corp. | 148,569 | ||||||
4,876 | J.B. Hunt Transport Services, Inc. | 404,123 | ||||||
3,367 | L-3 Communications Holdings, Inc. | 442,862 | ||||||
3,059 | Lincoln Electric Holdings, Inc. | 191,708 | ||||||
481 | Lindsay Corp. | 36,777 | ||||||
13,217 | Lockheed Martin Corp. | 3,071,366 | ||||||
1,426 | Matthews International Corp., Class A | 75,065 | ||||||
1,030 | McGrath RentCorp | 25,111 | ||||||
1,614 | MSA Safety, Inc. | 77,617 | ||||||
2,082 | MSC Industrial Direct Co., Inc., Class A | 161,355 | ||||||
2,462 | Nordson Corp. | 188,909 | ||||||
12,902 | Norfolk Southern Corp. | 1,162,599 | ||||||
7,829 | Northrop Grumman Corp. | 1,614,810 | ||||||
5,841 | Parker-Hannifin Corp. | 677,673 | ||||||
1,577 | Raven Industries, Inc. | 25,374 | ||||||
12,936 | Raytheon Co. | 1,634,464 | ||||||
1,929 | Regal Beloit Corp. | 124,266 | ||||||
14,921 | Republic Services, Inc. | 702,331 | ||||||
5,675 | Robert Half International, Inc. | 217,409 | ||||||
9,467 | Rollins, Inc. | 254,378 | ||||||
4,369 | Roper Technologies, Inc. | 769,337 | ||||||
2,310 | Ryder System, Inc. | 159,205 | ||||||
6,591 | Stanley Black & Decker, Inc. | 737,665 | ||||||
765 | Tennant Co. | 40,859 | ||||||
2,372 | Toro Co. (The) | 205,059 | ||||||
36,189 | United Technologies Corp. | 3,777,046 | ||||||
988 | Valmont Industries, Inc. | 138,695 | ||||||
2,671 | W.W. Grainger, Inc. | 626,403 | ||||||
19,281 | Waste Management, Inc. | 1,133,530 | ||||||
|
| |||||||
39,206,420 | ||||||||
|
| |||||||
Information Technology—10.7% | ||||||||
27,167 | Accenture PLC, Class A | 3,067,698 | ||||||
13,413 | Analog Devices, Inc. | 755,420 | ||||||
19,792 | Automatic Data Processing, Inc. | 1,750,404 | ||||||
631 | Badger Meter, Inc. | 45,009 | ||||||
490 | Cass Information Systems, Inc. | 24,240 | ||||||
1,898 | Daktronics, Inc. | 16,513 | ||||||
5,389 | Harris Corp. | 431,174 | ||||||
41,573 | International Business Machines Corp. | 6,067,164 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 22 |
|
PowerShares Dividend AchieversTM Portfolio (PFM) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Information Technology (continued) | ||||||||
3,408 | Jack Henry & Associates, Inc. | $ | 276,150 | |||||
10,355 | Linear Technology Corp. | 460,590 | ||||||
12,391 | Maxim Integrated Products, Inc. | 442,607 | ||||||
156 | Mesa Laboratories, Inc. | 15,722 | ||||||
8,814 | Microchip Technology, Inc. | 428,272 | ||||||
213,039 | Microsoft Corp. | 10,624,255 | ||||||
64,677 | QUALCOMM, Inc. | 3,267,482 | ||||||
43,493 | Texas Instruments, Inc. | 2,480,841 | ||||||
11,056 | Xilinx, Inc. | 476,292 | ||||||
|
| |||||||
30,629,833 | ||||||||
|
| |||||||
Materials—4.2% | ||||||||
9,330 | Air Products & Chemicals, Inc. | 1,361,154 | ||||||
4,855 | Albemarle Corp. | 321,207 | ||||||
2,719 | AptarGroup, Inc. | 206,644 | ||||||
4,093 | Bemis Co., Inc. | 205,387 | ||||||
1,457 | Compass Minerals International, Inc. | 109,217 | ||||||
12,807 | Ecolab, Inc. | 1,472,549 | ||||||
2,159 | H.B. Fuller Co. | 96,550 | ||||||
3,472 | International Flavors & Fragrances, Inc. | 414,800 | ||||||
19,048 | Monsanto Co. | 1,784,417 | ||||||
13,756 | Nucor Corp. | 684,774 | ||||||
11,542 | PPG Industries, Inc. | 1,274,121 | ||||||
12,324 | Praxair, Inc. | 1,447,577 | ||||||
2,824 | Royal Gold, Inc. | 176,839 | ||||||
5,743 | RPM International, Inc. | 290,194 | ||||||
1,942 | Sensient Technologies Corp. | 130,599 | ||||||
3,989 | Sherwin-Williams Co. (The) | 1,146,079 | ||||||
2,613 | Silgan Holdings, Inc. | 132,583 | ||||||
4,365 | Sonoco Products Co. | 204,675 | ||||||
963 | Stepan Co. | 59,022 | ||||||
3,418 | Valspar Corp. (The) | 364,666 | ||||||
5,630 | Westlake Chemical Corp. | 282,570 | ||||||
|
| |||||||
12,165,624 | ||||||||
|
| |||||||
Telecommunication Services—6.8% | ||||||||
266,236 | AT&T, Inc. | 10,335,281 | ||||||
694 | Atlantic Tele-Network, Inc. | 49,906 | ||||||
4,398 | Telephone & Data Systems, Inc. | 130,049 | ||||||
176,258 | Verizon Communications, Inc. | 8,978,582 | ||||||
|
| |||||||
19,493,818 | ||||||||
|
| |||||||
Utilities—6.4% | ||||||||
4,909 | Alliant Energy Corp. | 346,183 | ||||||
1,581 | American States Water Co. | 65,912 | ||||||
4,020 | AmeriGas Partners LP | 174,267 | ||||||
7,660 | Aqua America, Inc. | 242,516 | ||||||
4,418 | Atmos Energy Corp. | 320,526 | ||||||
2,702 | Avista Corp. | 108,269 | ||||||
2,212 | Black Hills Corp. | 134,025 | ||||||
2,071 | California Water Service Group | 57,843 | ||||||
18,616 | CenterPoint Energy, Inc. | 399,313 | ||||||
660 | Chesapeake Utilities Corp. | 39,283 | ||||||
483 | Connecticut Water Service, Inc. | 22,711 | ||||||
12,702 | Consolidated Edison, Inc. | 947,569 | ||||||
25,805 | Dominion Resources, Inc. | 1,844,283 | ||||||
29,783 | Duke Energy Corp. | 2,346,305 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Utilities (continued) | ||||||||
14,096 | Edison International | $ | 996,728 | |||||
13,724 | Eversource Energy | 774,583 | ||||||
8,448 | MDU Resources Group, Inc. | 169,467 | ||||||
1,499 | MGE Energy, Inc. | 74,725 | ||||||
3,669 | National Fuel Gas Co. | 203,629 | ||||||
3,718 | New Jersey Resources Corp. | 132,658 | ||||||
19,928 | NextEra Energy, Inc. | 2,343,134 | ||||||
1,188 | Northwest Natural Gas Co. | 61,230 | ||||||
2,081 | NorthWestern Corp. | 118,284 | ||||||
29,213 | PPL Corp. | 1,099,577 | ||||||
6,179 | SCANA Corp. | 424,436 | ||||||
883 | SJW Corp. | 30,384 | ||||||
3,078 | South Jersey Industries, Inc. | 85,907 | ||||||
39,495 | Southern Co. (The) | 1,978,700 | ||||||
1,878 | Spire, Inc. | 120,117 | ||||||
7,438 | UGI Corp. | 299,305 | ||||||
3,577 | Vectren Corp. | 174,736 | ||||||
13,657 | WEC Energy Group, Inc. | 794,974 | ||||||
6,123 | Westar Energy, Inc. | 316,008 | ||||||
2,153 | WGL Holdings, Inc. | 146,167 | ||||||
21,960 | Xcel Energy, Inc. | 879,059 | ||||||
|
| |||||||
18,272,813 | ||||||||
|
| |||||||
Total Investments (Cost $234,657,939)—100.0% | 287,004,100 | |||||||
Other assets less liabilities—0.0% | 48,368 | |||||||
|
| |||||||
Net Assets—100.0% | $ | 287,052,468 | ||||||
|
|
Investment Abbreviations:
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | Affiliated company. The Fund’s Adviser is a wholly-owned subsidiary of Invesco Ltd. and therefore, Invesco Ltd. is considered to be affiliated. See Note 4. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 23 |
|
Schedule of Investments(a)
PowerShares Financial Preferred Portfolio (PGF)
April 30, 2016
Number of Shares | Value | |||||||
Preferred Stocks and Other Equity Interests—99.9% | ||||||||
Banks—71.3% | ||||||||
547,630 | Bank of America Corp., 6.00%, Series EE | $ | 13,822,181 | |||||
889,478 | Bank of America Corp., 6.20%, Series CC | 22,921,848 | ||||||
535,365 | Bank of America Corp., 6.20%, Series D(b) | 13,780,295 | ||||||
79,586 | Bank of America Corp., 6.38%, Series 3 | 2,052,523 | ||||||
1,010,761 | Bank of America Corp., 6.50%, Series Y | 26,684,090 | ||||||
1,094,933 | Bank of America Corp., 6.63%, Series W | 29,256,610 | ||||||
697,278 | Barclays Bank PLC, 6.63%, Series 2 (United Kingdom)(b) | 17,989,772 | ||||||
865,800 | Barclays Bank PLC, 7.10%, Series 3 (United Kingdom) | 22,441,536 | ||||||
664,108 | Barclays Bank PLC, 7.75%, Series 4 (United Kingdom) | 17,419,553 | ||||||
2,375,275 | Barclays Bank PLC, 8.13%, Series 5 (United Kingdom)(b) | 62,659,754 | ||||||
59,035 | BB&T Corp., 5.20%, Series G | 1,490,634 | ||||||
351,358 | BB&T Corp., 5.63%(b) | 9,012,333 | ||||||
1,765,167 | BB&T Corp., 5.63%, Series E | 45,400,095 | ||||||
427,592 | BB&T Corp., 5.85% | 11,258,497 | ||||||
320,167 | Citigroup, Inc., 5.80%, Series C | 8,317,939 | ||||||
607,029 | Citigroup, Inc., 6.30%, Series S(b) | 15,697,770 | ||||||
1,133,870 | Citigroup, Inc., 6.88%, Series K | 31,283,473 | ||||||
883,487 | Citigroup, Inc., 7.13%, Series J | 24,702,297 | ||||||
408,791 | Fifth Third Bancorp, 6.63%, Series I | 11,977,576 | ||||||
306,480 | First Niagara Financial Group, Inc., 8.63%, Series B | 8,204,470 | ||||||
4,228,772 | HSBC Holdings PLC, 8.00%, Series 2 (United Kingdom) | 112,062,458 | ||||||
1,487,176 | HSBC Holdings PLC, 8.13% (United Kingdom)(b) | 40,436,315 | ||||||
301,226 | HSBC USA, Inc., 6.50%, Series H | 7,840,913 | ||||||
323,983 | Huntington Bancshares, Inc., 6.25%, Series D | 8,530,472 | ||||||
771,303 | ING Groep NV, 6.13% (Netherlands) | 19,753,070 | ||||||
167,678 | ING Groep NV, 6.20% (Netherlands) | 4,322,739 | ||||||
1,372,714 | ING Groep NV, 6.38% (Netherlands) | 35,663,110 | ||||||
750,274 | JPMorgan Chase & Co., 5.45%, Series P | 19,116,982 | ||||||
1,127,712 | JPMorgan Chase & Co., 5.50%, Series O(b) | 28,519,836 | ||||||
1,123,451 | JPMorgan Chase & Co., 6.10%, Series AA(b) | 29,355,775 | ||||||
1,211,026 | JPMorgan Chase & Co., 6.13%, Series Y(b) | 31,619,889 | ||||||
1,221,538 | JPMorgan Chase & Co., 6.15%, Series BB | 31,931,003 | ||||||
120,146 | JPMorgan Chase & Co., 6.30%, Series W | 3,165,847 | ||||||
592,425 | JPMorgan Chase & Co., 6.70%, Series T | 16,368,703 | ||||||
301,010 | KKR Financial Holdings LLC, 7.38%, Series A | 7,871,412 | ||||||
1,545,516 | PNC Financial Services Group, Inc. (The), 6.13%, Series P(b) | 44,680,868 | ||||||
398,052 | Regions Financial Corp., 6.38%, Series A | 10,428,962 | ||||||
443,720 | Regions Financial Corp., 6.38%, Series B | 12,184,551 | ||||||
490,401 | Royal Bank of Scotland Group PLC, 5.75%, Series L (United Kingdom) | 11,867,704 | ||||||
130,861 | Royal Bank of Scotland Group PLC, 6.13%, Series R (United Kingdom)(b) | 3,221,798 | ||||||
448,433 | Royal Bank of Scotland Group PLC, 6.60%, Series S (United Kingdom) | 11,269,121 |
Number of Shares | �� | Value | ||||||
Preferred Stocks and Other Equity Interests (continued) | ||||||||
Banks (continued) | ||||||||
1,033,358 | Royal Bank of Scotland Group PLC, 7.25%, Series T (United Kingdom) | $ | 26,061,289 | |||||
396,882 | SunTrust Banks, Inc., 5.88%, Series E(b) | 10,398,308 | ||||||
751,943 | U.S. Bancorp, 5.15%, Series H(b) | 19,738,504 | ||||||
452,906 | U.S. Bancorp, 6.00%, Series G | 11,961,247 | ||||||
993,414 | U.S. Bancorp, 6.50%, Series F(b) | 29,365,318 | ||||||
900,435 | Wells Fargo & Co., 5.20% | 23,222,219 | ||||||
427,585 | Wells Fargo & Co., 5.25%, Series P | 11,070,176 | ||||||
879,639 | Wells Fargo & Co., 5.70%, Series W(b) | 22,580,333 | ||||||
1,415,592 | Wells Fargo & Co., 5.85% | 37,272,537 | ||||||
509,779 | Wells Fargo & Co., 6.00%, Series T | 13,575,415 | ||||||
619,258 | Wells Fargo & Co., 6.00%, Series V | 16,422,722 | ||||||
179,860 | Wells Fargo & Co., 6.63% | 5,237,523 | ||||||
1,877,706 | Wells Fargo & Co., 8.00%, Series J | 52,894,978 | ||||||
|
| |||||||
1,166,385,343 | ||||||||
|
| |||||||
Capital Markets—15.8% | ||||||||
511,689 | Bank of New York Mellon Corp. (The), 5.20% | 13,124,823 | ||||||
429,795 | Charles Schwab Corp. (The), 5.95%, Series D | 11,161,776 | ||||||
419,571 | Charles Schwab Corp. (The), 6.00%, Series B | 11,026,326 | ||||||
518,634 | Charles Schwab Corp. (The), 6.00%, Series C(b) | 13,982,373 | ||||||
903,979 | Goldman Sachs Group, Inc. (The), 5.50%, Series J | 22,716,992 | ||||||
896,001 | Goldman Sachs Group, Inc. (The), 5.95%(b) | 22,991,386 | ||||||
470,678 | Goldman Sachs Group, Inc. (The), 6.20%, Series B | 11,992,875 | ||||||
198,125 | Goldman Sachs Group, Inc. (The), 6.30%, Series N | 5,161,156 | ||||||
398,016 | Goldman Sachs Group, Inc. (The), 6.38%, Series K(b) | 11,144,448 | ||||||
654,041 | Morgan Stanley, 6.38%, Series I | 17,345,167 | ||||||
374,302 | Morgan Stanley, 6.63%, Series G | 10,121,126 | ||||||
835,644 | Morgan Stanley, 6.88%, Series F | 22,930,071 | ||||||
860,474 | Morgan Stanley, 7.13%, Series E | 24,738,628 | ||||||
324,876 | Northern Trust Corp., 5.85%, Series C | 8,774,901 | ||||||
566,049 | State Street Corp., 5.25%, Series C | 14,841,805 | ||||||
181,144 | State Street Corp., 5.35%, Series G | 4,762,276 | ||||||
666,001 | State Street Corp., 5.90%, Series D(b) | 18,095,247 | ||||||
496,174 | State Street Corp., 6.00% | 13,406,621 | ||||||
|
| |||||||
258,317,997 | ||||||||
|
| |||||||
Consumer Finance—5.3% | ||||||||
347,866 | Ally Financial, Inc., 8.50%, Series A | 8,689,693 | ||||||
824,143 | Capital One Financial Corp., 6.00%, Series B | 21,345,304 | ||||||
456,718 | Capital One Financial Corp., 6.20%, Series F | 12,061,923 | ||||||
379,248 | Capital One Financial Corp., 6.25%, Series C | 10,042,487 | ||||||
269,169 | Capital One Financial Corp., 6.70%, Series D | 7,385,997 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 24 |
|
PowerShares Financial Preferred Portfolio (PGF) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Preferred Stocks and Other Equity Interests (continued) | ||||||||
Consumer Finance (continued) | ||||||||
511,538 | Discover Financial Services, 6.50%, Series B | $ | 13,530,180 | |||||
530,311 | HSBC Finance Corp., 6.36%, Series B | 13,756,267 | ||||||
|
| |||||||
86,811,851 | ||||||||
|
| |||||||
Insurance—7.5% | ||||||||
758,577 | Aegon NV, 6.38% (Netherlands) | 19,510,601 | ||||||
261,701 | Aegon NV, 6.50% (Netherlands) | 6,843,481 | ||||||
308,340 | Allstate Corp. (The), 5.63%(b) | 8,204,927 | ||||||
124,043 | Allstate Corp. (The), 6.25%, Series F | 3,412,423 | ||||||
676,628 | Allstate Corp. (The), 6.63%, Series E | 18,641,101 | ||||||
301,038 | Allstate Corp. (The), 6.75%, Series C | 8,389,929 | ||||||
287,725 | Arch Capital Group Ltd., 6.75%, Series C (Bermuda) | 7,581,554 | ||||||
230,765 | Aspen Insurance Holdings Ltd., 5.95% (Bermuda) | 6,149,887 | ||||||
348,029 | Axis Capital Holdings Ltd., 6.88%, Series C | 9,177,525 | ||||||
103,831 | PartnerRe Ltd., 5.88%, Series F (Bermuda) | 2,634,193 | ||||||
437,311 | PartnerRe Ltd., 7.25%, Series E (Bermuda) | 11,418,190 | ||||||
326,792 | Prudential PLC, 6.50% (United Kingdom) | 8,552,147 | ||||||
196,201 | Prudential PLC, 6.75% (United Kingdom) | 5,179,706 | ||||||
267,987 | RenaissanceRe Holdings Ltd., 5.38%, Series E (Bermuda) | 6,796,150 | ||||||
|
| |||||||
122,491,814 | ||||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $1,536,927,572)—99.9% | 1,634,007,005 | |||||||
|
| |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—1.0% | ||||||||
17,206,270 | Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(c)(d) (Cost $17,206,270) | 17,206,270 | ||||||
|
| |||||||
Total Investments (Cost $1,554,133,842)—100.9% | 1,651,213,275 | |||||||
Other assets less liabilities—(0.9)% | (14,834,822 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 1,636,378,453 | ||||||
|
|
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | All or a portion of this security was out on loan at April 30, 2016. |
(c) | The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
(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. |
This Fund has holdings greater than 10% of net assets in the following country:
United Kingdom | 20.7 | % |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 25 |
|
Schedule of Investments(a)
PowerShares High Yield Equity Dividend AchieversTM Portfolio (PEY)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks—100.0% | ||||||||
Banks—10.9% | ||||||||
216,465 | BOK Financial Corp.(b) | $ | 13,026,864 | |||||
270,563 | Community Bank System, Inc. | 10,706,178 | ||||||
280,631 | Cullen/Frost Bankers, Inc.(b) | 17,957,578 | ||||||
954,537 | People’s United Financial, Inc.(b) | 14,795,323 | ||||||
319,509 | United Bankshares, Inc.(b) | 12,361,803 | ||||||
231,372 | Westamerica Bancorp.(b) | 11,272,444 | ||||||
|
| |||||||
80,120,190 | ||||||||
|
| |||||||
Capital Markets—3.7% | ||||||||
374,769 | Eaton Vance Corp. | 12,940,774 | ||||||
459,325 | Invesco Ltd.(c) | 14,243,668 | ||||||
|
| |||||||
27,184,442 | ||||||||
|
| |||||||
Diversified Telecommunication Services—4.0% | ||||||||
420,970 | AT&T, Inc. | 16,342,055 | ||||||
263,507 | Verizon Communications, Inc. | 13,423,047 | ||||||
|
| |||||||
29,765,102 | ||||||||
|
| |||||||
Electric Utilities—5.8% | ||||||||
181,126 | Duke Energy Corp. | 14,269,106 | ||||||
374,436 | PPL Corp. | 14,093,771 | ||||||
285,697 | Southern Co. (The) | 14,313,420 | ||||||
|
| |||||||
42,676,297 | ||||||||
|
| |||||||
Electrical Equipment—1.8% | ||||||||
241,047 | Emerson Electric Co. | 13,168,398 | ||||||
|
| |||||||
Energy Equipment & Services—2.7% | ||||||||
298,051 | Helmerich & Payne, Inc.(b) | 19,707,132 | ||||||
|
| |||||||
Food Products—4.5% | ||||||||
283,652 | Archer-Daniels-Midland Co. | 11,329,061 | ||||||
588,125 | Flowers Foods, Inc. | 11,268,475 | ||||||
137,649 | Kellogg Co. | 10,572,819 | ||||||
|
| |||||||
33,170,355 | ||||||||
|
| |||||||
Gas Utilities—5.1% | ||||||||
229,943 | National Fuel Gas Co. | 12,761,836 | ||||||
228,994 | Northwest Natural Gas Co. | 11,802,351 | ||||||
480,104 | South Jersey Industries, Inc. | 13,399,703 | ||||||
|
| |||||||
37,963,890 | ||||||||
|
| |||||||
Household Products—1.4% | ||||||||
125,083 | Procter & Gamble Co. (The) | 10,021,650 | ||||||
|
| |||||||
Insurance—3.7% | ||||||||
271,967 | Mercury General Corp. | 14,387,054 | ||||||
710,247 | Old Republic International Corp. | 13,132,467 | ||||||
|
| |||||||
27,519,521 | ||||||||
|
| |||||||
IT Services—1.8% | ||||||||
92,104 | International Business Machines Corp. | 13,441,658 | ||||||
|
| |||||||
Machinery—4.0% | ||||||||
199,715 | Caterpillar, Inc. | 15,521,850 | ||||||
118,354 | Cummins, Inc. | 13,850,968 | ||||||
|
| |||||||
29,372,818 | ||||||||
|
| |||||||
Media—2.1% | ||||||||
300,261 | Meredith Corp. | 15,406,392 | ||||||
|
| |||||||
Metals & Mining—3.8% | ||||||||
176,758 | Compass Minerals International, Inc. | 13,249,780 | ||||||
293,267 | Nucor Corp. | 14,598,831 | ||||||
|
| |||||||
27,848,611 | ||||||||
|
|
Number of Shares | Value | |||||||
Common Stocks (continued) | ||||||||
Multi-Utilities—10.6% | ||||||||
285,010 | Avista Corp. | $ | 11,420,351 | |||||
880,539 | CenterPoint Energy, Inc. | 18,887,562 | ||||||
163,364 | Consolidated Edison, Inc. | 12,186,954 | ||||||
674,042 | MDU Resources Group, Inc. | 13,521,283 | ||||||
157,592 | SCANA Corp. | 10,824,994 | ||||||
230,087 | Vectren Corp. | 11,239,750 | ||||||
|
| |||||||
78,080,894 | ||||||||
|
| |||||||
Oil, Gas & Consumable Fuels—18.4% | ||||||||
186,946 | Chevron Corp. | 19,102,142 | ||||||
138,230 | Exxon Mobil Corp. | 12,219,532 | ||||||
1,442,450 | Murphy Oil Corp.(b) | 51,553,163 | ||||||
190,700 | Occidental Petroleum Corp. | 14,617,155 | ||||||
1,061,929 | ONEOK, Inc. | 38,388,734 | ||||||
|
| |||||||
135,880,726 | ||||||||
|
| |||||||
Personal Products—2.5% | ||||||||
459,599 | Nu Skin Enterprises, Inc., Class A(b) | 18,737,851 | ||||||
|
| |||||||
Road & Rail—1.6% | ||||||||
134,047 | Norfolk Southern Corp. | 12,078,975 | ||||||
|
| |||||||
Semiconductors & Semiconductor Equipment—4.9% | ||||||||
312,987 | Maxim Integrated Products, Inc. | 11,179,895 | ||||||
220,159 | Microchip Technology, Inc. | 10,697,526 | ||||||
275,856 | QUALCOMM, Inc. | 13,936,245 | ||||||
|
| |||||||
35,813,666 | ||||||||
|
| |||||||
Specialty Retail—1.1% | ||||||||
365,948 | Gap, Inc. (The)(b) | 8,482,675 | ||||||
|
| |||||||
Tobacco—5.6% | ||||||||
174,078 | Altria Group, Inc. | 10,916,432 | ||||||
214,135 | Universal Corp. | 11,681,064 | ||||||
869,452 | Vector Group Ltd. | 18,780,163 | ||||||
|
| |||||||
41,377,659 | ||||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $679,213,423)—100.0% | 737,818,902 | |||||||
|
| |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—14.5% | ||||||||
106,689,297 | Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(d)(e) (Cost $106,689,297) | 106,689,297 | ||||||
|
| |||||||
Total Investments (Cost $785,902,720)—114.5% | 844,508,199 | |||||||
Other assets less liabilities—(14.5)% | (106,724,751 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 737,783,448 | ||||||
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 26 |
|
PowerShares High Yield Equity Dividend AchieversTM Portfolio (PEY) (continued)
April 30, 2016
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | All or a portion of this security was out on loan at April 30, 2016. |
(c) | Affiliated company. The Fund’s Adviser is a wholly-owned subsidiary of Invesco Ltd. and therefore, Invesco Ltd. is considered to be affiliated. See Note 4. |
(d) | The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
(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. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 27 |
|
Schedule of Investments
PowerShares International Dividend AchieversTM Portfolio (PID)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.0% | ||||||||
Australia—10.4% | ||||||||
885,495 | BHP Billiton Ltd. ADR(a) | $ | 27,751,413 | |||||
1,121,574 | BHP Billiton PLC ADR(a) | 30,921,795 | ||||||
601,451 | Westpac Banking Corp. ADR(a) | 14,194,244 | ||||||
|
| |||||||
72,867,452 | ||||||||
|
| |||||||
Belgium—1.0% | ||||||||
58,013 | Anheuser-Busch InBev NV ADR | 7,204,054 | ||||||
|
| |||||||
Bermuda—4.5% | ||||||||
2,316,000 | Teekay LNG Partners LP | 31,821,840 | ||||||
|
| |||||||
Brazil—1.5% | ||||||||
495,235 | Ultrapar Participacoes SA ADR | 10,390,030 | ||||||
|
| |||||||
Canada—26.8% | ||||||||
84,171 | Agrium, Inc. | 7,248,806 | ||||||
241,364 | Bank of Nova Scotia (The) | 12,659,542 | ||||||
196,661 | BCE, Inc. | 9,225,367 | ||||||
278,138 | Brookfield Infrastructure Partners LP(a) | 11,731,861 | ||||||
141,179 | Canadian Imperial Bank of Commerce | 11,403,028 | ||||||
52,534 | Canadian National Railway Co. | 3,233,993 | ||||||
299,048 | Canadian Natural Resources Ltd. | 8,977,421 | ||||||
215,787 | Enbridge, Inc. | 8,963,792 | ||||||
42,666 | Franco-Nevada Corp. | 2,993,447 | ||||||
75,297 | Imperial Oil Ltd. | 2,483,295 | ||||||
106,423 | Magna International, Inc. | 4,471,894 | ||||||
195,636 | Methanex Corp. | 6,839,435 | ||||||
408,940 | Pembina Pipeline Corp. | 12,264,111 | ||||||
966,837 | Potash Corp. of Saskatchewan, Inc. | 17,132,352 | ||||||
197,957 | Ritchie Bros. Auctioneers, Inc. | 5,679,386 | ||||||
198,624 | Rogers Communications, Inc., Class B | 7,722,501 | ||||||
167,331 | Royal Bank of Canada | 10,394,602 | ||||||
554,947 | Shaw Communications, Inc., Class B | 10,272,069 | ||||||
269,337 | Suncor Energy, Inc. | 7,910,428 | ||||||
278,775 | TELUS Corp. | 8,826,016 | ||||||
189,660 | Toronto-Dominion Bank (The)(a) | 8,439,870 | ||||||
216,546 | TransCanada Corp. | 8,984,493 | ||||||
|
| |||||||
187,857,709 | ||||||||
|
| |||||||
Colombia—1.3% | ||||||||
236,563 | Bancolombia SA (Preference Shares) ADR | 9,152,623 | ||||||
|
| |||||||
Denmark—0.4% | ||||||||
50,433 | Novo Nordisk A/S, Class B ADR | 2,813,657 | ||||||
|
| |||||||
France—1.1% | ||||||||
187,793 | Sanofi ADR | 7,718,292 | ||||||
|
| |||||||
Germany—0.7% | ||||||||
44,804 | Fresenius Medical Care AG & Co. KGaA ADR(a) | 1,954,798 | ||||||
39,277 | SAP SE ADR | 3,087,958 | ||||||
|
| |||||||
5,042,756 | ||||||||
|
| |||||||
Hong Kong—2.3% | ||||||||
960,910 | Seaspan Corp.(a) | 16,248,988 | ||||||
|
| |||||||
India—3.0% | ||||||||
81,214 | Axis Bank Ltd. GDR(b) | 2,907,461 | ||||||
24,526 | HDFC Bank Ltd. ADR | 1,541,950 | ||||||
889,691 | ICICI Bank Ltd. ADR | 6,272,321 | ||||||
248,396 | Infosys Ltd. ADR | 4,669,845 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
India (continued) | ||||||||
179,054 | Larsen & Toubro Ltd. GDR(b) | $ | 3,410,979 | |||||
71,401 | Reliance Industries Ltd. GDR(b) | 2,113,470 | ||||||
|
| |||||||
20,916,026 | ||||||||
|
| |||||||
Ireland—0.1% | ||||||||
5,236 | Shire PLC ADR(a) | 981,331 | ||||||
|
| |||||||
Israel—0.6% | ||||||||
80,301 | Teva Pharmaceutical Industries Ltd. ADR | 4,372,390 | ||||||
|
| |||||||
Italy—0.3% | ||||||||
44,455 | Luxottica Group SpA ADR | 2,433,022 | ||||||
|
| |||||||
Japan—2.4% | ||||||||
77,158 | Nippon Telegraph & Telephone Corp. ADR | 3,438,932 | ||||||
100,238 | ORIX Corp. ADR | 6,972,555 | ||||||
61,309 | Toyota Motor Corp. ADR | 6,235,126 | ||||||
|
| |||||||
16,646,613 | ||||||||
|
| |||||||
Mexico—1.4% | ||||||||
316,284 | America Movil SAB de CV, Series L ADR | 4,478,581 | ||||||
57,571 | Grupo Aeroportuario del Pacifico SAB de CV ADR | 5,435,854 | ||||||
|
| |||||||
9,914,435 | ||||||||
|
| |||||||
Netherlands—0.2% | ||||||||
16,750 | ASML Holding NV | 1,618,050 | ||||||
|
| |||||||
Norway—1.9% | ||||||||
763,477 | Statoil ASA ADR(a) | 13,429,561 | ||||||
|
| |||||||
Panama—2.3% | ||||||||
615,528 | Banco Latinoamericano de Comercio Exterior SA, Class E | 15,917,554 | ||||||
|
| |||||||
Russia—2.8% | ||||||||
341,429 | LUKOIL PJSC ADR | 14,471,468 | ||||||
51,453 | NovaTek OAO GDR(b) | 4,939,488 | ||||||
|
| |||||||
19,410,956 | ||||||||
|
| |||||||
Sweden—1.0% | ||||||||
848,130 | Telefonaktiebolaget LM Ericsson, Class B ADR | 6,861,372 | ||||||
|
| |||||||
Switzerland—3.5% | ||||||||
441,819 | ABB Ltd. ADR | 9,326,799 | ||||||
195,930 | Novartis AG ADR | 14,884,802 | ||||||
|
| |||||||
24,211,601 | ||||||||
|
| |||||||
Taiwan—1.3% | ||||||||
1,782,670 | Advanced Semiconductor Engineering, Inc. ADR | 9,145,097 | ||||||
|
| |||||||
United Kingdom—21.3% | ||||||||
38,293 | ARM Holdings PLC ADR | 1,577,289 | ||||||
517,678 | BP PLC ADR | 17,383,627 | ||||||
70,438 | British American Tobacco PLC ADR | 8,604,002 | ||||||
154,544 | BT Group PLC ADR(a) | 5,069,043 | ||||||
59,598 | Diageo PLC ADR | 6,456,251 | ||||||
452,107 | HSBC Holdings PLC ADR(a) | 15,068,726 | ||||||
101,613 | Intercontinental Hotels Group PLC ADR(a) | 4,078,746 | ||||||
1,036,622 | Pearson PLC ADR | 12,169,942 | ||||||
103,444 | Pentair PLC | 6,008,028 | ||||||
177,851 | Prudential PLC ADR | 7,023,336 |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 28 |
|
PowerShares International Dividend AchieversTM Portfolio (PID) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
United Kingdom (continued) | ||||||||
297,247 | Relx NV ADR | $ | 4,993,750 | |||||
245,038 | Relx PLC ADR(a) | 4,405,783 | ||||||
878,852 | Rio Tinto PLC ADR(a) | 29,582,158 | ||||||
104,169 | Smith & Nephew PLC ADR | 3,576,122 | ||||||
132,736 | Unilever NV(a) | 5,843,039 | ||||||
338,412 | Vodafone Group PLC ADR | 11,079,609 | ||||||
54,075 | WPP PLC ADR(a) | 6,334,886 | ||||||
|
| |||||||
149,254,337 | ||||||||
|
| |||||||
United States—7.9% | ||||||||
8,004,279 | Teekay Offshore Partners LP(a)(c) | 47,785,546 | ||||||
183,272 | Thomson Reuters Corp. | 7,537,977 | ||||||
|
| |||||||
55,323,523 | ||||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $793,367,358)—100.0% | 701,553,269 | |||||||
|
| |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—16.2% | ||||||||
114,148,264 | Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(d)(e) (Cost $114,148,264) | 114,148,264 | ||||||
|
| |||||||
Total Investments (Cost $907,515,622)—116.2% | 815,701,533 | |||||||
Other assets less liabilities—(16.2)% | (114,017,777 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 701,683,756 | ||||||
|
|
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, 2016. |
(b) | Security purchased or received in a transaction exempt from registration under the Securities Act of 1933, as amended (the “1933 Act”). The security may be resold pursuant to an exemption from registration under the 1933 Act, typically to qualified institutional buyers. The aggregate value of these securities at April 30, 2016 was $13,371,398, which represented 1.91% of the Fund’s Net Assets. |
(c) | Affiliated company. See Note 4. |
(d) | The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
(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. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 29 |
|
Statements of Assets and Liabilities
April 30, 2016
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) | $ | 1,639,490,627 | $ | 286,445,393 | $ | 1,634,007,005 | $ | 723,575,234 | $ | 653,767,723 | ||||||||||
Affiliated investments, at value | 70,981,185 | 558,707 | 17,206,270 | 120,932,965 | 161,933,810 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total investments, at value | 1,710,471,812 | 287,004,100 | 1,651,213,275 | 844,508,199 | 815,701,533 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Receivables: | ||||||||||||||||||||
Investments sold | 21,022,903 | 69,376 | 1,689,371 | — | 324,240 | |||||||||||||||
Dividends | 539,197 | 557,891 | 4,405,598 | 1,802,746 | 3,249,414 | |||||||||||||||
Securities lending | 39,764 | — | 41,207 | 75,428 | 253,801 | |||||||||||||||
Shares sold | — | — | 3,751,686 | 4,463,001 | — | |||||||||||||||
Foreign tax reclaims | — | — | — | — | 990,909 | |||||||||||||||
Settlement proceeds | — | — | — | — | 1,765 | |||||||||||||||
Other assets | 8,372 | 3,255 | 6,590 | 4,923 | 7,426 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Assets | 1,732,082,048 | 287,634,622 | 1,661,107,727 | 850,854,297 | 820,529,088 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Liabilities: | ||||||||||||||||||||
Due to custodian | — | 314,557 | 4,189,569 | 300,487 | 4,014,361 | |||||||||||||||
Payables: | ||||||||||||||||||||
Collateral upon return of securities loaned | 70,119,602 | — | 17,206,270 | 106,689,297 | 114,148,264 | |||||||||||||||
Investments purchased | 16,360,109 | 854 | 1,869,923 | 5,536,262 | 35,337 | |||||||||||||||
Shares repurchased | 4,603,545 | — | — | — | — | |||||||||||||||
Accrued advisory fees | 694,134 | 94,419 | 657,439 | 227,367 | 226,215 | |||||||||||||||
Accrued trustees’ and officer’s fees | 60,779 | 26,983 | 92,575 | 31,111 | 58,458 | |||||||||||||||
Accrued expenses | 809,654 | 145,341 | 713,498 | 286,325 | 362,697 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Liabilities | 92,647,823 | 582,154 | 24,729,274 | 113,070,849 | 118,845,332 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Assets | $ | 1,639,434,225 | $ | 287,052,468 | $ | 1,636,378,453 | $ | 737,783,448 | $ | 701,683,756 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Assets Consist of: | ||||||||||||||||||||
Shares of beneficial interest | $ | 1,832,545,237 | $ | 256,517,062 | $ | 1,565,304,802 | $ | 836,648,721 | $ | 1,200,371,197 | ||||||||||
Undistributed net investment income | 3,331,080 | 1,149,675 | (88,742 | ) | 60,731 | 8,062,597 | ||||||||||||||
Undistributed net realized gain (loss) | (264,399,287 | ) | (22,960,430 | ) | (25,917,040 | ) | (157,531,483 | ) | (414,936,592 | ) | ||||||||||
Net unrealized appreciation (depreciation) | 67,957,195 | 52,346,161 | 97,079,433 | 58,605,479 | (91,813,446 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Assets | $ | 1,639,434,225 | $ | 287,052,468 | $ | 1,636,378,453 | $ | 737,783,448 | $ | 701,683,756 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Shares outstanding (unlimited amount authorized, $0.01 par value) | 35,900,000 | 13,200,000 | 87,050,000 | 49,500,000 | 47,850,000 | |||||||||||||||
Net asset value | $ | 45.67 | $ | 21.75 | $ | 18.80 | $ | 14.90 | $ | 14.66 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Market price | $ | 45.65 | $ | 21.75 | $ | 18.83 | $ | 14.91 | $ | 14.65 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Unaffiliated investments, at cost | $ | 1,571,533,432 | $ | 233,907,242 | $ | 1,536,927,572 | $ | 664,955,458 | $ | 704,625,633 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Affiliated investments, at cost | $ | 70,981,185 | $ | 750,697 | $ | 17,206,270 | $ | 120,947,262 | $ | 202,889,989 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total investments, at cost | $ | 1,642,514,617 | $ | 234,657,939 | $ | 1,554,133,842 | $ | 785,902,720 | $ | 907,515,622 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
(a) Includes securities on loan with an aggregate value of | $ | 68,423,981 | $ | — | $ | 16,861,047 | $ | 105,470,663 | $ | 110,366,907 | ||||||||||
|
|
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 30 |
|
For the year ended April 30, 2016
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 | $ | 42,639,354 | $ | 8,674,344 | $ | 95,902,060 | $ | 22,971,866 | $ | 42,955,146 | ||||||||||
Affiliated dividend income | 192,257 | 22,599 | 8,414 | 884 | 2,241,293 | |||||||||||||||
Securities lending income | 576,926 | — | 841,852 | 221,109 | 2,061,911 | |||||||||||||||
Foreign withholding tax | — | — | — | — | (2,954,090 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Income | 43,408,537 | 8,696,943 | 96,752,326 | 23,193,859 | 44,304,260 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Expenses: | ||||||||||||||||||||
Advisory fees | 11,813,964 | 1,201,114 | 7,572,671 | 2,229,710 | 4,221,020 | |||||||||||||||
Sub-licensing fees | 2,362,792 | 300,277 | 1,431,238 | 557,426 | 1,055,254 | |||||||||||||||
Accounting & administration fees | 443,508 | 54,579 | 280,610 | 105,283 | 202,381 | |||||||||||||||
Trustees’ and officer’s fees | 54,779 | 13,319 | 34,955 | 17,854 | 29,279 | |||||||||||||||
Custodian & transfer agent fees | 25,138 | 15,735 | 70,788 | 15,358 | 453,685 | |||||||||||||||
Other expenses | 210,275 | 66,108 | 151,981 | 82,273 | 157,997 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Expenses | 14,910,456 | 1,651,132 | 9,542,243 | 3,007,904 | 6,119,616 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Less: Waivers | (3,169 | ) | (382 | ) | (11,665 | ) | (753 | ) | (1,162 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Expenses | 14,907,287 | 1,650,750 | 9,530,578 | 3,007,151 | 6,118,454 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Investment Income | 28,501,250 | 7,046,193 | 87,221,748 | 20,186,708 | 38,185,806 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Realized and Unrealized Gain (Loss): | ||||||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||||||
Investment securities* | (189,872,491 | ) | (2,214,196 | ) | 1,538,026 | (26,601,222 | ) | (126,535,685 | ) | |||||||||||
In-kind redemptions | 184,644,298 | 16,570,662 | 29,388,004 | 64,519,971 | 3,282,470 | |||||||||||||||
Foreign currencies | — | — | — | — | 459 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net realized gain (loss) | (5,228,193 | ) | 14,356,466 | 30,926,030 | 37,918,749 | (123,252,756 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Change in net unrealized appreciation (depreciation) on: | ||||||||||||||||||||
Investment securities | (194,908,268 | ) | (13,429,976 | ) | (9,113,684 | ) | 25,751,399 | (202,704,253 | ) | |||||||||||
Foreign currencies | — | — | — | — | 643 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net change in unrealized appreciation (depreciation) | (194,908,268 | ) | (13,429,976 | ) | (9,113,684 | ) | 25,751,399 | (202,703,610 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net realized and unrealized gain (loss) | (200,136,461 | ) | 926,490 | 21,812,346 | 63,670,148 | (325,956,366 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net increase (decrease) in net assets resulting from operations | $ | (171,635,211 | ) | $ | 7,972,683 | $ | 109,034,094 | $ | 83,856,856 | $ | (287,770,560 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|
* | Includes net gains from securities sold to affiliates of $9,445 for PowerShares Financial Preferred Portfolio. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 31 |
|
Statements of Changes in Net Assets
For the years ended April 30, 2016 and 2015
PowerShares BuyBack AchieversTM Portfolio (PKW) | PowerShares Dividend AchieversTM Portfolio (PFM) | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 28,501,250 | $ | 30,836,737 | $ | 7,046,193 | $ | 7,376,238 | ||||||||
Net realized gain (loss) | (5,228,193 | ) | 258,161,485 | 14,356,466 | 24,781,463 | |||||||||||
Net change in unrealized appreciation (depreciation) | (194,908,268 | ) | 37,064,023 | (13,429,976 | ) | (8,826,932 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | (171,635,211 | ) | 326,062,245 | 7,972,683 | 23,330,769 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions to Shareholders from: | ||||||||||||||||
Net investment income | (29,971,633 | ) | (32,756,576 | ) | (7,191,272 | ) | (7,214,576 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shareholder Transactions: | ||||||||||||||||
Proceeds from shares sold | 552,688,479 | 1,366,740,866 | 13,765,872 | 49,356,388 | ||||||||||||
Value of shares repurchased | (1,682,571,530 | ) | (1,594,242,954 | ) | (71,313,646 | ) | (73,210,711 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from shares transactions | (1,129,883,051 | ) | (227,502,088 | ) | (57,547,774 | ) | (23,854,323 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Increase (Decrease) in Net Assets | (1,331,489,895 | ) | 65,803,581 | (56,766,363 | ) | (7,738,130 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets: | ||||||||||||||||
Beginning of year | 2,970,924,120 | 2,905,120,539 | 343,818,831 | 351,556,961 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of year | $ | 1,639,434,225 | $ | 2,970,924,120 | $ | 287,052,468 | $ | 343,818,831 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income at end of year | $ | 3,331,080 | $ | 4,900,076 | $ | 1,149,675 | $ | 1,171,060 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Changes in Shares Outstanding: | ||||||||||||||||
Shares sold | 12,800,000 | 28,850,000 | 650,000 | 2,300,000 | ||||||||||||
Shares repurchased | (37,800,000 | ) | (34,850,000 | ) | (3,500,000 | ) | (3,400,000 | ) | ||||||||
Shares outstanding, beginning of year | 60,900,000 | 66,900,000 | 16,050,000 | 17,150,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Shares outstanding, end of year | 35,900,000 | 60,900,000 | 13,200,000 | 16,050,000 | ||||||||||||
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 32 |
|
PowerShares Financial Preferred Portfolio (PGF) | PowerShares High Yield Equity Dividend AchieversTM Portfolio (PEY) | PowerShares International Dividend AchieversTM Portfolio (PID) | ||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||
$ | 87,221,748 | $ | 84,111,917 | $ | 20,186,708 | $ | 16,444,680 | $ | 38,185,806 | $ | 38,304,869 | |||||||||||
30,926,030 | 18,545,919 | 37,918,749 | 55,819,802 | (123,252,756 | ) | 3,930,446 | ||||||||||||||||
(9,113,684 | ) | 17,654,230 | 25,751,399 | (9,435,272 | ) | (202,703,610 | ) | (19,752,892 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
109,034,094 | 120,312,066 | 83,856,856 | 62,829,210 | (287,770,560 | ) | 22,482,423 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(87,907,150 | ) | (83,658,606 | ) | (20,340,136 | ) | (16,547,207 | ) | (39,292,920 | ) | (36,588,767 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
404,047,155 | 96,086,975 | 505,920,545 | 394,961,598 | 12,037,214 | 570,101,010 | |||||||||||||||||
(260,512,094 | ) | (96,582,262 | ) | (368,978,245 | ) | (297,022,280 | ) | (555,136,253 | ) | (144,801,898 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
143,535,061 | (495,287 | ) | 136,942,300 | 97,939,318 | (543,099,039 | ) | 425,299,112 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
164,662,005 | 36,158,173 | 200,459,020 | 144,221,321 | (870,162,519 | ) | 411,192,768 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
1,471,716,448 | 1,435,558,275 | 537,324,428 | 393,103,107 | 1,571,846,275 | 1,160,653,507 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 1,636,378,453 | $ | 1,471,716,448 | $ | 737,783,448 | $ | 537,324,428 | $ | 701,683,756 | $ | 1,571,846,275 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | (88,742 | ) | $ | 412,813 | $ | 60,731 | $ | 214,159 | $ | 8,062,597 | $ | 6,170,194 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
21,700,000 | 5,250,000 | 36,700,000 | 30,300,000 | 700,000 | 30,700,000 | |||||||||||||||||
(14,400,000 | ) | (5,300,000 | ) | (27,150,000 | ) | (22,250,000 | ) | (38,200,000 | ) | (7,900,000 | ) | |||||||||||
79,750,000 | 79,800,000 | 39,950,000 | 31,900,000 | 85,350,000 | 62,550,000 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
87,050,000 | 79,750,000 | 49,500,000 | 39,950,000 | 47,850,000 | 85,350,000 | |||||||||||||||||
|
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| 33 |
|
PowerShares BuyBack AchieversTM Portfolio (PKW)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 48.78 | $ | 43.42 | $ | 34.60 | $ | 29.40 | $ | 27.27 | ||||||||||
Net investment income(a) | 0.56 | 0.51 | 0.39 | 0.37 | 0.27 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (3.08 | ) | 5.38 | 8.70 | 5.18 | 2.12 | ||||||||||||||
Total from investment operations | (2.52 | ) | 5.89 | 9.09 | 5.55 | 2.39 | ||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.59 | ) | (0.53 | ) | (0.27 | ) | (0.35 | ) | (0.26 | ) | ||||||||||
Net asset value at end of year | $ | 45.67 | $ | 48.78 | $ | 43.42 | $ | 34.60 | $ | 29.40 | ||||||||||
Market price at end of year(b) | $ | 45.65 | $ | 48.77 | $ | 43.42 | $ | 34.61 | $ | 29.40 | ||||||||||
Net Asset Value Total Return(c) | (5.18 | )% | 13.63 | % | 26.36 | % | 19.08 | % | 8.91 | % | ||||||||||
Market Price Total Return(c) | (5.20 | )% | 13.61 | % | 26.32 | % | 19.11 | % | 8.91 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 1,639,434 | $ | 2,970,924 | $ | 2,905,121 | $ | 418,621 | $ | 139,641 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.63 | %(d) | 0.63 | %(d) | 0.66 | %(d) | 0.70 | % | 0.71 | % | ||||||||||
Expenses, prior to Waivers | 0.63 | %(d) | 0.63 | %(d) | 0.66 | %(d) | 0.70 | % | 0.79 | % | ||||||||||
Net investment income, after Waivers | 1.21 | % | 1.09 | % | 0.95 | % | 1.21 | % | 1.00 | % | ||||||||||
Portfolio turnover rate(e) | 53 | % | 68 | % | 92 | % | 80 | % | 32 | % |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 companies’ 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 investment companies the Fund invests in. The effect of the estimated investment companies’ expenses that the Fund bears indirectly is included in the Fund’s total return. |
(e) | Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
PowerShares Dividend AchieversTM Portfolio (PFM)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 21.42 | $ | 20.50 | $ | 18.33 | $ | 15.81 | $ | 15.29 | ||||||||||
Net investment income(a) | 0.49 | 0.44 | 0.39 | 0.38 | 0.34 | |||||||||||||||
Net realized and unrealized gain on investments | 0.33 | 0.90 | 2.16 | 2.52 | 0.51 | |||||||||||||||
Total from investment operations | 0.82 | 1.34 | 2.55 | 2.90 | 0.85 | |||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.49 | ) | (0.42 | ) | (0.38 | ) | (0.38 | ) | (0.33 | ) | ||||||||||
Net asset value at end of year | $ | 21.75 | $ | 21.42 | $ | 20.50 | $ | 18.33 | $ | 15.81 | ||||||||||
Market price at end of year(b) | $ | 21.75 | $ | 21.40 | $ | 20.50 | $ | 18.32 | $ | 15.80 | ||||||||||
Net Asset Value Total Return(c) | 3.98 | % | 6.54 | % | 14.11 | % | 18.67 | % | 5.78 | % | ||||||||||
Market Price Total Return(c) | 4.08 | % | 6.44 | % | 14.17 | % | 18.68 | % | 5.71 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 287,052 | $ | 343,819 | $ | 351,557 | $ | 296,928 | $ | 252,988 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.55 | % | 0.55 | % | 0.55 | % | 0.58 | % | 0.60 | % | ||||||||||
Expenses, prior to Waivers | 0.55 | % | 0.55 | % | 0.55 | % | 0.58 | % | 0.60 | % | ||||||||||
Net investment income, after Waivers | 2.35 | % | 2.07 | % | 2.05 | % | 2.28 | % | 2.28 | % | ||||||||||
Portfolio turnover rate(d) | 7 | % | 20 | % | 21 | % | 18 | % | 20 | % |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 34 |
|
Financial Highlights (continued)
PowerShares Financial Preferred Portfolio (PGF)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 18.45 | $ | 17.99 | $ | 18.67 | $ | 17.79 | $ | 18.26 | ||||||||||
Net investment income(a) | 1.06 | 1.07 | 1.10 | 1.18 | 1.17 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.36 | 0.45 | (0.68 | ) | 0.85 | (0.42 | ) | |||||||||||||
Total from investment operations | 1.42 | 1.52 | 0.42 | 2.03 | 0.75 | |||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (1.07 | ) | (1.06 | ) | (1.10 | ) | (1.15 | ) | (1.17 | ) | ||||||||||
Return of capital | — | — | — | — | (0.05 | ) | ||||||||||||||
Total distributions | (1.07 | ) | (1.06 | ) | (1.10 | ) | (1.15 | ) | (1.22 | ) | ||||||||||
Net asset value at end of year | $ | 18.80 | $ | 18.45 | $ | 17.99 | $ | 18.67 | $ | 17.79 | ||||||||||
Market price at end of year(b) | $ | 18.83 | $ | 18.46 | $ | 17.98 | $ | 18.70 | $ | 17.83 | ||||||||||
Net Asset Value Total Return(c) | 8.01 | % | 8.73 | % | 2.63 | % | 11.78 | % | 4.56 | % | ||||||||||
Market Price Total Return(c) | 8.12 | % | 8.85 | % | 2.41 | % | 11.71 | % | 4.68 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 1,636,378 | $ | 1,471,716 | $ | 1,435,558 | $ | 1,891,452 | $ | 1,612,698 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.63 | % | 0.63 | % | 0.63 | % | 0.64 | % | 0.66 | % | ||||||||||
Expenses, prior to Waivers | 0.63 | % | 0.63 | % | 0.63 | % | 0.64 | % | 0.66 | % | ||||||||||
Net investment income, after Waivers | 5.76 | % | 5.87 | % | 6.28 | % | 6.47 | % | 6.76 | % | ||||||||||
Portfolio turnover rate(d) | 13 | % | 9 | % | 30 | % | 18 | % | 6 | % |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
PowerShares High Yield Equity Dividend AchieversTM Portfolio (PEY)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 13.45 | $ | 12.32 | $ | 10.77 | $ | 9.36 | $ | 9.06 | ||||||||||
Net investment income(a) | 0.48 | 0.43 | 0.42 | 0.42 | 0.35 | |||||||||||||||
Net realized and unrealized gain on investments | 1.46 | 1.13 | 1.54 | 1.41 | 0.29 | |||||||||||||||
Total from investment operations | 1.94 | 1.56 | 1.96 | 1.83 | 0.64 | |||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.49 | ) | (0.43 | ) | (0.41 | ) | (0.42 | ) | (0.34 | ) | ||||||||||
Net asset value at end of year | $ | 14.90 | $ | 13.45 | $ | 12.32 | $ | 10.77 | $ | 9.36 | ||||||||||
Market price at end of year(b) | $ | 14.91 | $ | 13.45 | $ | 12.32 | $ | 10.76 | $ | 9.36 | ||||||||||
Net Asset Value Total Return(c) | 14.92 | % | 12.89 | % | 18.61 | % | 20.16 | % | 7.37 | % | ||||||||||
Market Price Total Return(c) | 14.99 | % | 12.89 | % | 18.72 | % | 20.05 | % | 7.37 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 737,783 | $ | 537,324 | $ | 393,103 | $ | 322,476 | $ | 276,169 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.54 | % | 0.54 | % | 0.55 | % | 0.57 | % | 0.60 | % | ||||||||||
Expenses, prior to Waivers | 0.54 | % | 0.54 | % | 0.55 | % | 0.57 | % | 0.60 | % | ||||||||||
Net investment income, after Waivers | 3.62 | % | 3.29 | % | 3.70 | % | 4.31 | % | 3.88 | % | ||||||||||
Portfolio turnover rate(d) | 59 | % | 45 | % | 51 | % | 32 | % | 35 | % |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 35 |
|
Financial Highlights (continued)
PowerShares International Dividend AchieversTM Portfolio (PID)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 18.42 | $ | 18.56 | $ | 17.27 | $ | 15.35 | $ | 16.85 | ||||||||||
Net investment income(a) | 0.56 | 0.51 | 0.67 | (b) | 0.40 | 0.48 | ||||||||||||||
Net realized and unrealized gain (loss) on investments | (3.78 | ) | (0.17 | ) | 1.26 | 1.93 | (1.49 | ) | ||||||||||||
Total from investment operations | (3.22 | ) | 0.34 | 1.93 | 2.33 | (1.01 | ) | |||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.54 | ) | (0.48 | ) | (0.64 | ) | (0.41 | ) | (0.49 | ) | ||||||||||
Net asset value at end of year | $ | 14.66 | $ | 18.42 | $ | 18.56 | $ | 17.27 | $ | 15.35 | ||||||||||
Market price at end of year(c) | $ | 14.65 | $ | 18.43 | $ | 18.58 | $ | 17.31 | $ | 15.37 | ||||||||||
Net Asset Value Total Return(d) | (17.53 | )% | 1.83 | % | 11.50 | % | 15.63 | % | (5.87 | )% | ||||||||||
Market Price Total Return(d) | (17.63 | )% | 1.77 | % | 11.35 | % | 15.75 | % | (5.97 | )% | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 701,684 | $ | 1,571,846 | $ | 1,160,654 | $ | 877,341 | $ | 690,196 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.58 | % | 0.55 | % | 0.54 | % | 0.56 | % | 0.55 | % | ||||||||||
Expenses, prior to Waivers | 0.58 | % | 0.55 | % | 0.54 | % | 0.56 | % | 0.56 | % | ||||||||||
Net investment income, after Waivers | 3.62 | % | 2.77 | % | 3.82 | %(b) | 2.57 | % | 3.20 | % | ||||||||||
Portfolio turnover rate(e) | 61 | % | 66 | % | 49 | % | 46 | % | 33 | % |
(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 significant dividend during the year. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividend are $0.43 and 2.42%, respectively. |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
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PowerShares Exchange-Traded Fund Trust
April 30, 2016
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, 2016, the Trust offered fifty-three 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 NYSE Arca, Inc.
The market price of each Share 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 principally in exchange for the deposit or delivery of a basket of securities (“Deposit Securities”). 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 | Underlying Index | |
BuyBack AchieversTM Portfolio | NASDAQ US BuyBack AchieversTM Index | |
Dividend AchieversTM Portfolio | NASDAQ US Broad Dividend AchieversTM Index | |
Financial Preferred Portfolio | Wells Fargo® Hybrid & Preferred Securities Financial Index | |
High Yield Equity Dividend AchieversTM Portfolio | NASDAQ US Dividend AchieversTM 50 Index | |
International Dividend AchieversTM Portfolio | NASDAQ 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. The following is a summary of the significant accounting policies followed by the Funds in preparation of their financial statements.
A. Security Valuation
Securities, including restricted securities, are valued according to the following policies:
A security listed or traded on an exchange (except convertible securities) 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. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked 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 asked prices. For purposes of determining NAV per Share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
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Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day NAV per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the 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.
Debt obligations (including convertible securities) 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 (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Securities with a demand feature exercisable within one to seven days are valued at par. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts’) prices 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 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 Invesco PowerShares Capital Management LLC (the “Adviser”) determines 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’ prices 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. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith following procedures approved by the Board of Trustees. Issuer-specific events, market trends, bid/asked 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.
Each Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
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 investing strategies that seek returns in excess of their Underlying Indexes. 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.
Equity Risk. Equity risk is the risk that the value of the securities that each Fund holds will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities that a 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 securities a Fund holds; the price of securities 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 securities a Fund holds. In addition, securities 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.
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Industry Concentration Risk. In following its methodology, each Fund’s Underlying Index from time to time will be concentrated to a significant degree in securities of issuers located in a single industry or a sector. To the extent that an Underlying Index concentrates in the securities of issuers in a particular industry or sector, each Fund will also concentrate its investments to approximately the same extent. By concentrating its investments in an industry or sector, a Fund may face more risks than if it were diversified broadly over numerous industries or sectors. In addition, at times, an industry or sector may be out of favor and underperform other industries or the market as a whole. Any factors detrimental to the performance of such industry or sector will disproportionately impact a Fund’s NAV.
Non-Diversified Fund Risk. BuyBack AchieversTM Portfolio and Financial Preferred Portfolio are non-diversified and can invest a greater portion of their assets in securities of individual issuers than diversified funds. 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 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.
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.
Sampling Risk. Financial Preferred Portfolio’s use of a representative sampling approach will result in the Fund holding a smaller number of securities than are in its Underlying Index. As a result, an adverse development to an issuer of securities held by the Fund could result in a greater decline in NAV than would be the case if the Fund held all of the securities in its Underlying Index. To the extent the assets in the Fund are smaller, these risks will be greater.
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.
Dividend Paying Security Risk. Dividend AchieversTM Portfolio, High Yield Equity Dividend AchieversTM Portfolio and International Dividend AchieversTM Portfolio invest in securities that pay high dividends. As a group, these securities can fall out of favor with the market, causing such companies to underperform companies that do not pay high dividends. Also, changes in the dividend policies of the companies in an Underlying Index and the capital resources available for such companies’ dividend payments may affect a Fund.
Foreign Securities Risk. For Financial Preferred Portfolio and International Dividend AchieversTM Portfolio, investments in foreign securities involve risks in addition to the risks associated with domestic securities. In general, foreign companies are not subject to the regulatory requirements of U.S. companies and, as such, there may be less publicly available information about these companies. Moreover, foreign companies often are subject to less stringent requirements regarding accounting, auditing, financial reporting and record-keeping than are U.S. companies. Therefore, not all material information regarding these companies will be available.
In addition, securities of foreign issuers may be less liquid than comparable securities of U.S. issuers and, as such, their price changes may be more volatile. Furthermore, foreign exchanges and broker-dealers generally are subject to less government and exchange scrutiny and regulation than their U.S. counterparts. In addition, differences in clearance and settlement procedures in foreign markets may cause delays in settlement of a Fund’s trades effected in those markets and could result in losses to a Fund due to subsequent declines in the value of the securities subject to the trades. Depositary receipts also involve substantially identical risks to those associated with investments in foreign securities. Additionally, the issuers of certain depositary receipts, particularly unsponsored or unregistered depositary receipts, have no obligation to distribute shareholder communications to the holders of such receipts or to pass through to them any voting rights with respect to the deposited securities.
High Yield Securities Risk. For Financial Preferred Portfolio and High Yield Equity Dividend AchieversTM Portfolio, 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.
Preferred Securities Risk. Financial Preferred Portfolio faces special risks associated with investing 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 also may be subordinated to bonds or other debt
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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.
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.
Each Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed each Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
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 Transactions and Investment Income
Investment transactions are accounted for on a trade date basis. Realized gains and losses from the sale or disposition of securities are computed on the specific identified cost basis. Interest income is recorded on the accrual basis. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Realized gains, dividends and interest received by a Fund may give rise to withholding and other taxes imposed by foreign countries. Tax conventions between certain countries and the United States may reduce or eliminate such taxes.
The Funds may periodically participate in litigation related to each Fund’s investments. As such, the Funds may receive proceeds from litigation settlements. Any proceeds received are included in the Statements of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Corporate actions (including cash dividends) are recorded net of non-reclaimable foreign tax withholdings on the ex-date.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statements of Operations and the Statements of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of each Fund’s net asset value and, accordingly, they reduce each Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statements of Operations and the Statements of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between each Fund and the Adviser.
E. Country Determination
For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the Adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
F. 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 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,
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fees payable to the Trust’s Board members who are not “interested persons” (as defined in the 1940 Act) of the Trust (the “Independent Trustees”) or the Adviser, expenses incurred in connection with the Board members’ services, including travel expenses and legal fees of counsel for the Independent Trustees, acquired fund fees and expenses, if any, 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 such investment companies’ expenses are included in the realized and unrealized gain or loss on the investments in the investment companies.
G. Dividends and Distributions to Shareholders
Each Fund (except for Financial Preferred Portfolio and High Yield Equity Dividend AchieversTM Portfolio, which declare and pay dividends from net investment income, 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. Generally, 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 federal 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 year-end.
H. Securities Lending
During the fiscal year ended April 30, 2016, BuyBack AchieversTM Portfolio, Financial Preferred Portfolio, High Yield Equity Dividend AchieversTM Portfolio and International Dividend AchieversTM Portfolio participated in securities lending. Each Fund loaned portfolio securities having a market value up to one-third of each Fund’s total assets. Such loans are secured by cash collateral equal to no less than 102% (105% for international securities) 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 Schedules of Investments. Each Fund bears the risk of loss with respect to the investment of collateral. 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. When loaning securities, each Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to each 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 failed to return the securities. The securities loaned are subject to termination at the option of the borrower or each Fund. Upon termination, the borrower will return to each Fund the securities loaned and each Fund will return the collateral. 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. Each Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to each Fund. Some of these losses may be indemnified by the lending agent. Each 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, are included in Securities lending income on the Statements of Operations. The aggregate value of securities out on loan, if any, is shown on the Statements of Assets and Liabilities.
Note 3. Investment Advisory Agreement and Other Agreements
The Trust has entered into an Investment Advisory Agreement with the Adviser on behalf of each Fund, 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. Pursuant to that Investment Advisory Agreement, each Fund has agreed to pay the Adviser an annual fee of 0.40% of the Fund’s average daily net assets, except for BuyBack AchieversTM Portfolio and Financial Preferred Portfolio, each of which pay the Adviser an annual fee of 0.50% of the Fund’s average daily net assets.
The Trust also has entered into an Amended and Restated Excess Expense Agreement (the “Expense Agreement”) with the Adviser on behalf of each Fund, 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, acquired fund fees and expenses, if any, and extraordinary expenses) of each Fund (except for BuyBack AchieversTM Portfolio and Financial Preferred Portfolio) 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”), through at least August 31, 2017. Offering costs excluded from the Expense Cap for each Fund 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. Unless the Adviser continues the Expense Agreement, it will terminate on August 31, 2017. During its term, the Expense Agreement cannot be terminated or amended to increase the Expense Cap without approval of the Board of Trustees. For each Fund, the Adviser did not waive fees and/or pay Fund expenses during the period under this Expense Cap.
Further, through August 31, 2018, the Adviser has contractually agreed to waive a portion of each Fund’s management fee in an amount equal to 100% of the net advisory fees an affiliate of the Adviser receives that are attributable to certain of the Fund’s investments in money market funds managed by that affiliate (excluding investments of cash collateral from securities lending). The Adviser cannot discontinue this waiver prior to its expiration. This agreement is not subject to recapture by the Adviser.
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For the fiscal year ended April 30, 2016, the Adviser waived fees and/or paid Fund expenses for each Fund in the following amounts:
BuyBack AchieversTM Portfolio | $ | 3,169 | ||
Dividend AchieversTM Portfolio | 382 | |||
Financial Preferred Portfolio | 11,665 | |||
High Yield Equity Dividend AchieversTM Portfolio | 753 | |||
International Dividend AchieversTM Portfolio | 1,162 |
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 fiscal year ended April 30, 2016, there were no amounts available for potential recapture by the Adviser under the Expense Agreement.
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 Funds are not charged any fees pursuant to the Distribution Agreement. 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 | NASDAQ OMX Group, Inc. | |
Dividend AchieversTM Portfolio | NASDAQ OMX Group, Inc. | |
Financial Preferred Portfolio | Wells Fargo & Company | |
High Yield Equity Dividend AchieversTM Portfolio | NASDAQ OMX Group, Inc. | |
International Dividend AchieversTM 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 by 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 the 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. Investments in Affiliates
The Adviser and Invesco Mortgage Capital, Inc. REIT are wholly-owned subsidiaries of Invesco Ltd. and therefore, Invesco Ltd. and Invesco Mortgage Capital, Inc. REIT are considered to be affiliated with the Funds. The table below shows certain Funds’ transactions in, and earnings from, investments in affiliates for the fiscal year ended April 30, 2016.
BuyBack AchieversTM Portfolio
Value April 30, 2015 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain (Loss) | Value April 30, 2016 | Dividend Income | ||||||||||||||||||||||
Invesco Mortgage Capital, Inc. REIT* | $ | 2,502,438 | $ | 438,338 | $ | (2,337,991 | ) | $ | (6,133 | ) | $ | (596,652 | ) | $ | — | $ | 188,710 |
* | At April 30, 2016, this security was no longer held. |
Dividend AchieversTM Portfolio
Value April 30, 2015 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain (Loss) | Value April 30, 2016 | Dividend Income | ||||||||||||||||||||||
Invesco Ltd. | $ | 921,802 | $ | 44,359 | $ | (183,282 | ) | $ | (182,198 | ) | $ | (41,974 | ) | $ | 558,707 | $ | 22,222 |
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High Yield Equity Dividend AchieversTM Portfolio
Value April 30, 2015 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain | Value April 30, 2016 | Dividend Income | ||||||||||||||||||||||
Invesco Ltd. | $ | — | $ | 14,531,495 | $ | (275,693 | ) | $ | (14,297 | ) | $ | 2,163 | $ | 14,243,668 | $ | — |
International Dividend AchieversTM Portfolio
Value April 30, 2015 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation | Realized Gain (Loss) | Value April 30, 2016 | Dividend Income | ||||||||||||||||||||||
Invesco Ltd.* | $ | 14,328,131 | $ | 1,824,122 | $ | (12,544,160 | ) | $ | 149,014 | $ | (3,757,107 | ) | $ | — | $ | 340,127 |
* | At April 30, 2016, this security was no longer held. |
The 1940 Act defines “affiliated person” to include issuers of which a fund holds 5% or more of the outstanding voting securities. The Fund listed below has not owned enough of the outstanding voting securities of the issuer to have control (as defined in the 1940 Act) of that issuer. The table below shows International Dividend Achievers™ Portfolio’s transactions in, and earnings from, its investment in affiliates for the fiscal year ended April 30, 2016.
International Dividend AchieversTM Portfolio
Value April 30, 2015 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain (Loss) | Value April 30, 2016 | Dividend Income | ||||||||||||||||||||||
Teekay Offshore Partners LP | $ | 58,879,251 | $ | 50,525,054 | $ | (19,886,360 | ) | $ | (36,262,126 | ) | $ | (5,470,273 | ) | $ | 47,785,546 | $ | 1,900,090 |
Note 5. Security Transactions with Affiliated Funds
Each Fund is permitted to purchase or sell securities from or to certain other affiliated funds under specified conditions outlined in procedures adopted by the Board of Trustees of the Trust. The procedures have been designed to ensure that any purchase or sale of securities by the Fund from or to another fund or portfolio that is or could be considered an affiliate by virtue of having a common investment adviser (or affiliated investment advisers), common Trustees and/or common officers complies with Rule 17a-7 of the 1940 Act. Further, as defined under the procedures, each transaction is effected at the current market price. For the fiscal year ended April 30, 2016, the following Fund engaged in transactions with affiliates as listed below:
Securities Purchases | Securities Sales | Net Realized Gains | ||||||||||
Financial Preferred Portfolio | $ | — | $ | 1,126,599 | $ | 9,445 |
Note 6. 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 a 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, 2016, all of the securities in each Fund were valued based on Level 1 inputs (see the Schedules of Investments for security categories). The level assigned to the securities valuations may not be an indication of the risk or liquidity associated with
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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.
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, 2016 and 2015:
2016 | 2015 | |||||||
Ordinary Income | Ordinary Income | |||||||
BuyBack AchieversTM Portfolio | $ | 29,971,633 | $ | 32,756,576 | ||||
Dividend AchieversTM Portfolio | 7,191,272 | 7,214,576 | ||||||
Financial Preferred Portfolio | 87,907,150 | 83,658,606 | ||||||
High Yield Equity Dividend Achievers™ Portfolio | 20,340,136 | 16,547,207 | ||||||
International Dividend Achievers™ Portfolio | 39,292,920 | 36,588,767 |
Tax Components of Net Assets at Fiscal Year-End:
Undistributed Ordinary Income | Temporary Book/Tax Differences | Net Unrealized Appreciation (Depreciation)— Investment Securities | Net Unrealized Appreciation— Other Investments | Capital Loss Carryforwards | Post-October Capital Loss Deferrals* | Shares of Beneficial Interest | Total Net Assets | |||||||||||||||||||||||||
BuyBack AchieversTM Portfolio | $ | 3,386,349 | $ | (55,269 | ) | $ | 61,577,509 | $ | — | $ | (75,310,983 | ) | $ | (182,708,618 | ) | $ | 1,832,545,237 | $ | 1,639,434,225 | |||||||||||||
Dividend AchieversTM Portfolio | 1,175,090 | (25,415 | ) | 49,536,501 | — | (17,996,901 | ) | (2,153,869 | ) | 256,517,062 | 287,052,468 | |||||||||||||||||||||
Financial Preferred Portfolio | — | (88,742 | ) | 91,882,209 | — | (16,389,493 | ) | (4,330,323 | ) | 1,565,304,802 | 1,636,378,453 | |||||||||||||||||||||
High Yield Equity Dividend AchieversTM Portfolio | 89,930 | (29,199 | ) | 53,991,168 | — | (130,623,183 | ) | (22,293,989 | ) | 836,648,721 | 737,783,448 | |||||||||||||||||||||
International Dividend AchieversTM Portfolio | 9,098,379 | (55,339 | ) | (107,038,364 | ) | 643 | (310,516,924 | ) | (90,175,836 | ) | 1,200,371,197 | 701,683,756 |
* | The Funds will elect to defer net capital losses incurred after October 31 (“Post-October Capital Losses”) within the taxable year that are deemed to arise on the first business day of each Fund’s next taxable year. |
Capital loss carryforwards are calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforwards actually available for the Funds to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. 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. Capital loss carryforwards with no expiration date 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 carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The following table presents available capital loss carryforwards and expiration dates for each Fund as of April 30, 2016:
Post-effective/no expiration | ||||||||||||||||||||||||||||
2017 | 2018 | 2019 | Short-Term | Long-Term | Total* | Expired | ||||||||||||||||||||||
BuyBack AchieversTM Portfolio | $ | 800,254 | $ | 12,142,749 | $ | 2,107,645 | $ | 56,085,445 | $ | 4,174,890 | $ | 75,310,983 | $ | 2,915,680 | ||||||||||||||
Dividend AchieversTM Portfolio | 1,025,344 | 14,632,363 | 2,339,194 | — | — | 17,996,901 | — | |||||||||||||||||||||
Financial Preferred Portfolio | 9,034,558 | 7,354,935 | — | — | — | 16,389,493 | 3,548,179 | |||||||||||||||||||||
High Yield Equity Dividend AchieversTM Portfolio | 81,487,358 | 44,815,128 | 2,187,574 | 1,777,356 | 355,767 | 130,623,183 | 884,585 | |||||||||||||||||||||
International Dividend AchieversTM Portfolio | 59,472,841 | 145,514,837 | 11,745,409 | 83,219,280 | 10,564,557 | 310,516,924 | 1,975,339 |
* | Capital loss carryforwards as of the date listed above are reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
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Note 8. Investment Transactions
For the fiscal year ended April 30, 2016, the cost of securities purchased and proceeds from sales of securities (other than short-term securities, U.S. Treasury obligations, money market funds and in-kind transactions, if any) were as follows:
Purchases | Sales | |||||||
BuyBack AchieversTM Portfolio | $ | 1,242,783,438 | $ | 1,246,226,878 | ||||
Dividend AchieversTM Portfolio | 20,938,308 | 21,382,288 | ||||||
Financial Preferred Portfolio | 220,997,628 | 202,322,261 | ||||||
High Yield Equity Dividend AchieversTM Portfolio | 337,917,071 | 332,862,982 | ||||||
International Dividend AchieversTM Portfolio | 646,273,970 | 641,710,718 |
For the fiscal year ended April 30, 2016, in-kind transactions associated with creations and redemptions were as follows:
Cost of Securities Received | Value of Securities Delivered | |||||||
BuyBack AchieversTM Portfolio | $ | 552,716,989 | $ | 1,679,750,117 | ||||
Dividend AchieversTM Portfolio | 13,700,251 | 70,300,069 | ||||||
Financial Preferred Portfolio | 373,742,262 | 258,312,094 | ||||||
High Yield Equity Dividend AchieversTM Portfolio | 497,777,185 | 365,946,837 | ||||||
International Dividend AchieversTM Portfolio | 12,036,598 | 554,815,329 |
Gains (losses) on in-kind transactions are generally not considered taxable gains (losses) for federal income tax purposes.
At April 30, 2016, the aggregate cost and the net unrealized appreciation (depreciation) of investments for tax purposes were as follows:
Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation (Depreciation) | Cost | |||||||||||||
BuyBack AchieversTM Portfolio | $ | 138,753,473 | $ | (77,175,964 | ) | $ | 61,577,509 | $ | 1,648,894,303 | |||||||
Dividend AchieversTM Portfolio | 56,346,979 | (6,810,478 | ) | 49,536,501 | 237,467,599 | |||||||||||
Financial Preferred Portfolio | 96,265,593 | (4,383,384 | ) | 91,882,209 | 1,559,331,066 | |||||||||||
High Yield Equity Dividend AchieversTM Portfolio | 57,987,768 | (3,996,600 | ) | 53,991,168 | 790,517,031 | |||||||||||
International Dividend AchieversTM Portfolio | 29,063,900 | (136,102,264 | ) | (107,038,364 | ) | 922,739,897 |
Note 9. Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of in-kind transactions and expired capital loss carryforwards on April 30, 2016, amounts were reclassified between undistributed net investment income, 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, 2016, the reclassifications were as follows:
Undistributed Net Investment Income | Undistributed Net Realized Gain (Loss) | Shares of Beneficial Interest | ||||||||||
BuyBack AchieversTM Portfolio | $ | (98,613 | ) | $ | (168,900,638 | ) | $ | 168,999,251 | ||||
Dividend AchieversTM Portfolio | 123,694 | (15,933,036 | ) | 15,809,342 | ||||||||
Financial Preferred Portfolio | 183,847 | (23,571,940 | ) | 23,388,093 | ||||||||
High Yield Equity Dividend AchieversTM Portfolio | — | (60,659,132 | ) | 60,659,132 | ||||||||
International Dividend AchieversTM Portfolio | 2,999,517 | 13,735,262 | (16,734,779 | ) |
Note 10. Trustees’ and Officer’s Fees
Trustees’ and Officer’s Fees include amounts accrued by the Funds to pay remuneration to the Independent Trustees and an Officer of the Trust. The Trustee who is an “interested person” of the Trust does 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
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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. Obligations under the Plan represent unsecured claims against the general assets of the Funds.
Note 11. Capital
Shares are created and redeemed by each Fund only in Creation Units of 50,000 Shares. Only Authorized Participants are permitted to purchase or redeem Creation Units from the Funds. Such transactions are principally permitted in exchange for Deposit Securities, with a balancing cash component to equate the transaction to the NAV per Share of a Fund of the Trust on the transaction date. However, for all Funds, cash in an amount equivalent to the value of certain securities may be substituted, generally when the securities are not available in sufficient quantity for delivery, not eligible for trading by the Authorized Participant or as a result of other market circumstances.
To the extent that the Funds permit transactions in exchange for Deposit Securities, each Fund may issue Shares in advance of receipt of Deposit Securities subject to various conditions, including a requirement to maintain on deposit with the Trust cash at least equal to 105% of the market value of the missing Deposit Securities. In accordance with the Trust’s Participant Agreement, Creation Units will be issued to an Authorized Participant, notwithstanding the fact that the corresponding Deposit Securities have not been received in part or in whole, in reliance on the undertaking of the Authorized Participant to deliver the missing Deposit Securities as soon as possible, which undertaking shall be secured by the Authorized Participant’s delivery and maintenance of collateral consisting of cash in the form of U.S. dollars in immediately available funds having a value (marked-to-market daily) at least equal to 105%, which the Adviser may change from time to time, of the value of the missing Deposit Securities.
Transactions in each Fund’s Shares are disclosed in detail in the Statements of Changes in Net Assets.
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.
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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, 2016, the results of each of their operations for the year then ended, the changes 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, 2016 by correspondence with the custodian and brokers, and the application of alternative auditing procedures where confirmations of security purchases have not been received, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Chicago, IL
June 23, 2016
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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, 2016.
In addition to the fees and expenses which the PowerShares BuyBack Achievers™ Portfolio (the “Portfolio”) bears directly, the Portfolio indirectly bears a pro rata share of the fees and expenses of the investment companies in which the Portfolio invests. The amount of fees and expenses incurred indirectly by the Portfolio will vary because the investment companies have varied expenses and fee levels and the Portfolio may own different proportions of the investment companies at different times. Estimated 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 the estimated investment companies’ expenses that the Portfolio bears indirectly is 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, expenses shown in the table do not include the expenses of the underlying funds, which are borne indirectly by a Fund. If transaction costs and indirect expenses were included, your costs would have been higher.
Beginning Account Value November 1, 2015 | Ending Account Value April 30, 2016 | Annualized Expense Ratio Based on the Number of Days in the Period | Expenses Paid During the Six-Month Period(1) | |||||||||||||
PowerShares BuyBack AchieversTM Portfolio (PKW) | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 973.14 | 0.63 | % | $ | 3.09 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.73 | 0.63 | 3.17 | ||||||||||||
PowerShares Dividend AchieversTM Portfolio (PFM) | ||||||||||||||||
Actual | 1,000.00 | 1,055.33 | 0.55 | 2.81 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.13 | 0.55 | 2.77 | ||||||||||||
PowerShares Financial Preferred Portfolio (PGF) | ||||||||||||||||
Actual | 1,000.00 | 1,044.34 | 0.63 | 3.20 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.73 | 0.63 | 3.17 | ||||||||||||
PowerShares High Yield Equity Dividend AchieversTM Portfolio (PEY) | ||||||||||||||||
Actual | 1,000.00 | 1,111.21 | 0.54 | 2.83 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,022.18 | 0.54 | 2.72 | ||||||||||||
PowerShares International Dividend AchieversTM Portfolio (PID) | ||||||||||||||||
Actual | 1,000.00 | 957.44 | 0.65 | 3.16 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.63 | 0.65 | 3.27 |
(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, 2016. 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. |
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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, 2016:
Qualified Dividend Income* | Dividends-Received Deduction* | |||||||||
PowerShares BuyBack AchieversTM Portfolio | 100 | % | 100 | % | ||||||
PowerShares Dividend AchieversTM Portfolio | 100 | % | 100 | % | ||||||
PowerShares Financial Preferred Portfolio | 100 | % | 68 | % | ||||||
PowerShares High Yield Equity Dividend AchieversTM Portfolio | 100 | % | 100 | % | ||||||
PowerShares International Dividend AchieversTM Portfolio | 67 | % | 0 | % |
* | The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year. |
The Funds intend 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:
Gross Foreign Income | Foreign Taxes Paid | |||||||||
PowerShares International Dividend AchieversTM Portfolio | $ | 26,399,030 | $ | 1,981,013 |
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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, 2016.
Name, Address and Year of Birth 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—1958 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Chairman of the Nominating and Governance Committee and Trustee | Chairman of the Nominating and Governance Committee and 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). | 124 | None | |||||
Todd J. Barre—1957 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Trustee | Since 2010 | Assistant Professor of Business, Trinity Christian College (2010-2016); 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. | 124 | None | |||||
Marc M. Kole—1960 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Chairman of the Audit Committee and Trustee | Chairman of the Audit Committee since 2008; and Trustee since 2006 | Senior Director of Finance, By The Hand Club for Kids (2015-Present); formerly: Chief Financial Officer, Hope Network (social services) (2008-2012); Assistant Vice President and Controller, Priority Health (health insurance) (2005-2008); Senior Vice President of Finance, United Healthcare (2004-2005); Chief Accounting Officer, Senior Vice President of Finance, Oxford Health Plans (2000-2004); Audit Partner, Arthur Andersen LLP (1996-2000). | 124 | None | |||||
Yung Bong Lim—1964 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Chairman of the Investment Oversight Committee and Trustee | Chairman of the Investment Oversight Committee since 2014; Trustee since 2013 | Managing Partner, Residential Dynamics Group LLC (2008-Present); formerly, Managing Director, Citadel Investment Group, L.L.C. (1999-2007). | 124 | 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, 2016, the “Fund Family” consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 71 portfolios advised by the Adviser. |
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Trustees and Officers (continued)
Name, Address and Year of Birth 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 | |||||
Philip M. Nussbaum—1961 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Trustee | Since 2003 | Chairman, Performance Trust Capital Partners (2004-Present). | 124 | None | |||||
Gary R. Wicker—1961 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Trustee | Since 2013 | Senior Vice President of Global Finance and Chief Financial Officer at RBC Ministries (publishing company) (2013-Present); formerly, Executive Vice President and Chief Financial Officer, Zondervan Publishing (a division of Harper Collins/NewsCorp) (2007-2012); Senior Vice President and Group Controller (2005-2006), Senior Vice President and Chief Financial Officer (2003-2004), Chief Financial Officer (2001-2003), Vice President, Finance and Controller (1999-2001) and Assistant Controller (1997-1999), divisions of The Thomson Corporation (information services provider). | 124 | None | |||||
Donald H. Wilson—1959 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Chairman of the Board and Trustee | Chairman since 2012; Trustee since 2006 | Chairman and Chief Executive Officer, Stone Pillar Advisors, Ltd. (2010-Present); formerly, Chairman, President and Chief Executive Officer, Community Financial Shares, Inc. and Community Bank—Wheaton/Glen Ellyn (subsidiary) (2013-2015); 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). | 124 | 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, 2016, the “Fund Family” consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 71 portfolios advised by the Adviser. |
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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 Year of Birth 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 Trustee | Other Directorships Held by Non-Independent Trustees During the Past 5 Years | |||||
Kevin M. Carome—1956 Invesco Ltd. Two Peachtree Pointe, 1555 Peachtree St., N.E., Suite 1800 Atlanta, GA 30309 | Trustee | Since 2010 | Senior Managing Director, Secretary and General Counsel, Invesco Ltd. (2007-Present); Director, Invesco Advisers, Inc. (2009-Present); Director, Invesco Finance PLC, and Invesco Holding Company Limited; Director and Executive Vice President, Invesco Finance, Inc., Invesco Group Services, Inc., Invesco Investments (Bermuda) Ltd., Invesco North American Holdings, Inc., IVZ, Inc. and Invesco Asset Management (Bermuda) Ltd.; Manager, Horizon Flight Works LLC; Director and Secretary, IVZ Bahamas Private Limited; formerly, Director, INVESCO Funds Group, Inc., Senior Vice President, Secretary and General Counsel, Invesco Advisers, 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. | 124 | 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, 2016, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 71 portfolios advised by the Adviser. |
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Trustees and Officers (continued)
Name, Address and Year of Birth of Executive Officers | Position(s) Held with Trust | Length of Time Served* | Principal Occupation(s) During Past 5 Years | |||
Daniel E. Draper—1968 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | President and Principal Executive Officer | Since 2015 | President and Principal Executive Officer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2015-Present); Chief Executive Officer (2016-Present) and Managing Director (2013-Present), Invesco PowerShares Capital Management LLC; Senior Vice President, Invesco Distributors, Inc. (2014-Present); formerly, Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-2015) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-2015); Managing Director, Credit Suisse Asset Management (2010-2013) and Lyxor Asset Management/Societe Generale (2007-2010). | |||
Steven M. Hill—1964 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Vice President and Treasurer | Since 2013 | Vice President and Treasurer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Global ETF Administration, Invesco PowerShares Capital Management LLC (2011-Present); Principal Financial and Accounting Officer – Investment Pools, Invesco PowerShares Capital Management LLC (2015-Present); formerly, Senior Managing Director and Chief Financial Officer, Destra Capital Management LLC and its subsidiaries (2010-2011); Chief Financial Officer, Destra Investment Trust and Destra Investment Trust II (2010-2011); Senior Managing Director, Claymore Securities, Inc. (2003-2010); and Chief Financial Officer, Claymore sponsored mutual funds (2003-2010). | |||
Peter Hubbard—1981 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Vice President | Since 2009 | Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2009-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Vice President and Director of Portfolio Management, Invesco PowerShares Capital Management LLC (2010-Present); formerly, Vice President of Portfolio Management, Invesco PowerShares Capital Management LLC (2008-2010); 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). | |||
Christopher Joe—1969 Invesco PowerShares Capital Management LLC 11 Greenway Plaza, Suite 1000 Houston, TX 77046-1173 | Chief Compliance Officer | Since 2012 | Chief Compliance Officer of Invesco PowerShares Capital Management LLC (2015-Present); Chief Compliance Officer of PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2012-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); formerly, Chief Compliance Officer, Invesco Investment Advisers, LLC (registered investment adviser) (2010–2013), U.S. Compliance Director, Invesco, Ltd. (2006-2014) and Deputy Chief Compliance Officer of Invesco Advisers, Inc. (2014-2015). |
* | 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. |
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Trustees and Officers (continued)
Name, Address and Year of Birth of Executive Officers | Position(s) Held with Trust | Length of Time Served* | Principal Occupation(s) During Past 5 Years | |||
Sheri Morris—1964 Invesco Management Group, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046 | Vice President | Since 2012 | President, Principal Executive Officer and Treasurer, The Invesco Funds (2016-Present); Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) (2009-Present) and Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2012-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); formerly, Vice President, Treasurer and Principal Financial Officer, The Invesco Funds (2008-2016); 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 (2011-2013); Vice President, Invesco Aim 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—1974 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Secretary | Since 2011 | Secretary, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2011-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Legal (2010-Present) and Secretary (2015-Present), 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). | |||
Rudolf E. Reitmann—1971 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Vice President | Since 2013 | Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Global Exchange Traded Funds Services, Invesco PowerShares Capital Management LLC (2013-Present). | |||
David Warren—1957 Invesco Canada Ltd. 5140 Yonge Street, Suite 800 Toronto, Ontario M2N 6X7 | Vice President | Since 2009 | Vice President, 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 (2009-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Managing Director—Chief Administrative Officer, Americas, Invesco PowerShares Capital Management LLC; Senior Vice President, Invesco Advisers, Inc. (2009-Present); Director, Invesco Inc. (2009-Present); Senior Vice President, Invesco Management Group, Inc. (2007-Present); Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (formerly, Invesco Trimark Ltd.); Chief Administrative Officer, North American Retail, Invesco Ltd. (2007-Present); Director, Invesco Corporate Class Inc. (2014-Present); Director, Invesco Global Direct Real Estate Feeder GP Ltd. (2015-Present); Director, Invesco Canada Holdings Inc. (2002-Present); Director, Invesco Financial Services Ltd. / Services Financiers Invesco Ltée and Trimark Investments Ltd./Placements Trimark Ltée (2014-Present); Director, Invesco IP Holdings (Canada) Ltd. (2016-Present); Director, Invesco Global Direct Real Estate GP Ltd. (2015-Present); formerly, Executive Vice President and Chief Financial Officer, Invesco Inc. (2009-2015); Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (formerly, Invesco Trimark Ltd.) (2000-2011). |
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. |
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Board Considerations Regarding Continuation of Investment
Advisory Agreement
At a meeting held on April 14, 2016, 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 51 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 Momentum Portfolio
PowerShares DWA Basic Materials Momentum Portfolio
PowerShares DWA Consumer Cyclicals Momentum Portfolio
PowerShares DWA Consumer Staples Momentum Portfolio
PowerShares DWA Energy Momentum Portfolio
PowerShares DWA Financial Momentum Portfolio
PowerShares DWA Healthcare Momentum Portfolio
PowerShares DWA Industrials Momentum Portfolio
PowerShares DWA NASDAQ Momentum Portfolio
PowerShares DWA Technology Momentum Portfolio
PowerShares DWA Utilities Momentum Portfolio
PowerShares Dynamic Biotechnology & Genome Portfolio
PowerShares Dynamic Building & Construction Portfolio
PowerShares Dynamic Energy Exploration & Production Portfolio
PowerShares Dynamic Food & Beverage Portfolio
PowerShares Dynamic Large Cap Growth Portfolio
PowerShares Dynamic Large Cap Value Portfolio
PowerShares Dynamic Leisure and Entertainment Portfolio
PowerShares Dynamic Market Portfolio
PowerShares Dynamic Media Portfolio
PowerShares Dynamic Networking Portfolio
PowerShares Dynamic Oil & Gas Services Portfolio
PowerShares Dynamic Pharmaceuticals Portfolio
PowerShares Dynamic Retail Portfolio
PowerShares Dynamic Semiconductors Portfolio
PowerShares Dynamic Software Portfolio
PowerShares Financial Preferred Portfolio
PowerShares FTSE RAFI US 1000 Portfolio
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio
PowerShares Global Listed Private Equity Portfolio
PowerShares Golden Dragon China Portfolio
PowerShares High Yield Equity Dividend Achievers TM Portfolio
PowerShares International Dividend AchieversTM Portfolio
PowerShares Russell Top 200 Equal Weight Portfolio
PowerShares Russell Top 200 Pure Growth Portfolio
PowerShares Russell Top 200 Pure Value Portfolio
PowerShares Russell Midcap Equal Weight Portfolio
PowerShares Russell Midcap Pure Growth Portfolio
PowerShares Russell Midcap Pure Value Portfolio
PowerShares Russell 2000 Equal Weight Portfolio
PowerShares Russell 2000 Pure Growth Portfolio
PowerShares Russell 2000 Pure Value Portfolio
PowerShares S&P 500® 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 for each Fund, (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 to and amounts paid by other registered investment companies and (vii) any benefits realized by the Adviser from its relationship with each Fund.
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 staffing, including operational support 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 and/or oversight of execution of portfolio transactions on behalf of the Funds. The Trustees also reviewed information on the performance of the Funds and their underlying indexes for the one-year, three-year, five-year, ten-year and since-inception periods ended December 31, 2015, as applicable, including reports for each of those periods 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 certain Funds and their underlying indexes. In reviewing the tracking error reports, the Trustees considered information provided by Ibbotson Associates, a consultant to the Independent Trustees, with respect to general expected tracking error ranges and various explanations for any tracking error. The Trustees noted that for each applicable period the correlation and tracking error for
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Board Considerations Regarding Continuation of Investment Advisory
Agreement (continued)
each Fund was within the targeted range set forth in the Trust’s registration statement and 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, effort and resources 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 advisory fee and net expense ratio, as compared to information compiled by the Adviser from Lipper Inc. databases on the advisory fees and net expense ratios of comparable exchange-traded funds (“ETFs”), open-end (non-ETF) index funds and open-end (non-ETF) 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 Russell Top 200 Equal Weight Portfolio, PowerShares Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Equal Weight Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Equal Weight Portfolio, PowerShares Russell 2000 Pure Growth Portfolio, PowerShares Russell 2000 Pure Value Portfolio and PowerShares S&P 500® Quality 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; |
● | 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 Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Pure Growth, Portfolio, PowerShares Russell 2000 Pure Value Portfolio and PowerShares S&P 500® Quality Portfolio; and |
● | 0.25% of the Fund’s average daily net assets for each of PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight Portfolio (The net advisory fees, after giving effect to the Expense Caps below, were 0.01%, -0.05% and -0.39% and, respectively, for PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight Portfolio.). |
The Trustees also noted that the Adviser has agreed to waive a portion of its advisory fee and/or pay expenses (an “Expense Cap”) to the extent necessary to prevent the annual operating expenses of each Fund from exceeding the percentage of that Fund’s average daily net assets, at least until August 31, 2017, 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 DWA NASDAQ Momentum 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; |
● | 0.39%, 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 Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Pure Growth Portfolio and PowerShares Russell 2000 Pure Value Portfolio; |
● | 0.29%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for PowerShares S&P 500® Quality Portfolio; |
● | 0.25%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses for PowerShares Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight Portfolio; |
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Board Considerations Regarding Continuation of Investment Advisory
Agreement (continued)
● | 0.60%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for PowerShares DWA Basic Materials Momentum Portfolio, PowerShares DWA Consumer Cyclicals Momentum Portfolio, PowerShares DWA Consumer Staples Momentum Portfolio, PowerShares DWA Energy Momentum Portfolio, PowerShares DWA Financial Momentum Portfolio, PowerShares DWA Healthcare Momentum Portfolio, PowerShares DWA Industrials Momentum Portfolio, PowerShares DWA Technology Momentum Portfolio and PowerShares DWA Utilities Momentum Portfolio; 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 serve as the investment adviser to any clients, other than other ETFs also overseen by the Trustees, with comparable investment strategies as the Funds, but that the Adviser provides sub-advisory services to clients with comparable investment strategies as certain of the Funds. The Trustees further noted the Adviser’s explanation with respect to the sub-advisory fees it receives for such services in comparison to the advisory fees charged to the Funds. The Trustees noted that the advisory fees for certain Funds were equal to or lower than the median advisory fees of their ETF and open-end index peer funds as illustrated in the table below. The Trustees also noted that the advisory fees for all of the Funds were lower than the median advisory fees of their open-end actively-managed peer funds.
PowerShares Fund | Equal to/Lower than ETF Median | Equal to/Lower than Open-End Index Fund Median* | Equal to/Lower than Open-End Active Fund Median | |||
PowerShares Aerospace & Defense Portfolio | X | |||||
PowerShares Buyback Achievers Portfolio | X | |||||
PowerShares Cleantech Portfolio | X | |||||
PowerShares Dividend Achievers Portfolio | X | X | ||||
PowerShares DWA Basic Materials Momentum Portfolio | X | |||||
PowerShares DWA Consumer Cyclicals Momentum Portfolio | X | |||||
PowerShares DWA Consumer Staples Momentum Portfolio | X | |||||
PowerShares DWA Energy Momentum Portfolio | X | |||||
PowerShares DWA Financial Momentum Portfolio | X | |||||
PowerShares DWA Healthcare Momentum Portfolio | X | |||||
PowerShares DWA Industrials Momentum Portfolio | X | |||||
PowerShares DWA Momentum Portfolio | X | |||||
PowerShares DWA NASDAQ Momentum Portfolio | X | |||||
PowerShares DWA Technology Momentum Portfolio | X | |||||
PowerShares DWA Utilities Momentum Portfolio | X | |||||
PowerShares Dynamic Biotechnology & Genome Portfolio | X | |||||
PowerShares Dynamic Building & Construction Portfolio | X | |||||
PowerShares Dynamic Energy Exploration & Production Portfolio | X | |||||
PowerShares Dynamic Food & Beverage Portfolio | X | |||||
PowerShares Dynamic Large Cap Growth Portfolio | X | |||||
PowerShares Dynamic Large Cap Value Portfolio | X | |||||
PowerShares Dynamic Leisure and Entertainment Portfolio | X | |||||
PowerShares Dynamic Market Portfolio | X | |||||
PowerShares Dynamic Media Portfolio | X | |||||
PowerShares Dynamic Networking Portfolio | X | |||||
PowerShares Dynamic Oil & Gas Services Portfolio | X | |||||
PowerShares Dynamic Pharmaceuticals Portfolio | X | |||||
PowerShares Dynamic Retail Portfolio | X |
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Board Considerations Regarding Continuation of Investment Advisory
Agreement (continued)
PowerShares Fund | Equal to/Lower than ETF Median | Equal to/Lower than Open-End Index Fund Median* | Equal to/Lower than Open-End Active Fund Median | |||
PowerShares Dynamic Semiconductors Portfolio | X | |||||
PowerShares Dynamic Software Portfolio | X | |||||
PowerShares Financial Preferred Portfolio | N/A | X | ||||
PowerShares FTSE RAFI US 1000 Portfolio | X | |||||
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio | X | X | ||||
PowerShares Russell Top 200 Equal Weight Portfolio | X | X | ||||
PowerShares Russell Top 200 Pure Growth Portfolio | X | |||||
PowerShares Russell Top 200 Pure Value Portfolio | X | |||||
PowerShares Russell Midcap Equal Weight Portfolio | X | |||||
PowerShares Russell Midcap Pure Growth Portfolio | X | X | X | |||
PowerShares Russell Midcap Pure Value Portfolio | X | X | ||||
PowerShares Russell 2000 Equal Weight Portfolio | X | X | ||||
PowerShares Russell 2000 Pure Growth Portfolio | X | X | ||||
PowerShares Russell 2000 Pure Value Portfolio | X | |||||
PowerShares Global Listed Private Equity Portfolio | N/A | X | ||||
PowerShares Golden Dragon China Portfolio | X | N/A | X | |||
PowerShares High Yield Equity Dividend Achievers Portfolio | X | X | ||||
PowerShares International Dividend Achievers Portfolio | X | X | X | |||
PowerShares S&P 500 Quality Portfolio | X | |||||
PowerShares Water Resources Portfolio | X | |||||
PowerShares WilderHill Clean Energy Portfolio | X | |||||
PowerShares WilderHill Progressive Energy Portfolio | X | |||||
PowerShares Zacks Micro Cap Portfolio | X |
* | The information provided by the Adviser indicated that certain Funds did not have open-end index fund peers. Those Funds have been designated with an “N/A” for not available. |
The Trustees determined that the advisory fees were reasonable, noting the nature of the indexes, the distinguishing factors of the Funds, and the administrative, operational and management oversight costs for the Adviser. The Trustees noted that the net expense ratios for certain Funds were equal to or lower than the median net expense ratios of their ETF and open-end index peer funds as illustrated in the table below. The Trustees also noted that the net expense ratios for all of the Funds were lower than the median net expense ratios of their open-end actively-managed peer funds.
PowerShares Fund | Equal to/Lower than ETF Median | Equal to/Lower than Open-End Index Fund Median | Equal to/Lower than Open-End Active Fund Median | |||
PowerShares Aerospace & Defense Portfolio | X | |||||
PowerShares Buyback Achievers Portfolio | X | |||||
PowerShares Cleantech Portfolio | X | |||||
PowerShares Dividend Achievers Portfolio | X | X | ||||
PowerShares DWA Basic Materials Momentum Portfolio | X | |||||
PowerShares DWA Consumer Cyclicals Momentum Portfolio | X | |||||
PowerShares DWA Consumer Staples Momentum Portfolio | X | |||||
PowerShares DWA Energy Momentum Portfolio | X | |||||
PowerShares DWA Financial Momentum Portfolio | X |
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Board Considerations Regarding Continuation of Investment Advisory
Agreement (continued)
PowerShares Fund | Equal to/Lower than ETF Median | Equal to/Lower than Open-End Index Fund Median | Equal to/Lower than Open-End Active Fund Median | |||
PowerShares DWA Healthcare Momentum Portfolio | X | |||||
PowerShares DWA Industrials Momentum Portfolio | X | |||||
PowerShares DWA Momentum Portfolio | X | X | ||||
PowerShares DWA NASDAQ Momentum Portfolio | X | X | ||||
PowerShares DWA Technology Momentum Portfolio | X | |||||
PowerShares DWA Utilities Momentum Portfolio | X | |||||
PowerShares Dynamic Biotechnology & Genome Portfolio | X | |||||
PowerShares Dynamic Building & Construction Portfolio | X | |||||
PowerShares Dynamic Energy Exploration & Production Portfolio | X | |||||
PowerShares Dynamic Food & Beverage Portfolio | X | |||||
PowerShares Dynamic Large Cap Growth Portfolio | X | |||||
PowerShares Dynamic Large Cap Value Portfolio | X | |||||
PowerShares Dynamic Leisure and Entertainment Portfolio | X | |||||
PowerShares Dynamic Market Portfolio | X | |||||
PowerShares Dynamic Media Portfolio | X | |||||
PowerShares Dynamic Networking Portfolio | X | |||||
PowerShares Dynamic Oil & Gas Services Portfolio | X | |||||
PowerShares Dynamic Pharmaceuticals Portfolio | X | |||||
PowerShares Dynamic Retail Portfolio | X | |||||
PowerShares Dynamic Semiconductors Portfolio | X | |||||
PowerShares Dynamic Software Portfolio | X | |||||
PowerShares Financial Preferred Portfolio | N/A | X | ||||
PowerShares FTSE RAFI US 1000 Portfolio | X | X | X | |||
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio | X | X | X | |||
PowerShares Russell Top 200 Equal Weight Portfolio | X | X | ||||
PowerShares Russell Top 200 Pure Growth Portfolio | X | X | ||||
PowerShares Russell Top 200 Pure Value Portfolio | X | |||||
PowerShares Russell Midcap Equal Weight Portfolio | X | X | ||||
PowerShares Russell Midcap Pure Growth Portfolio | X | X | X | |||
PowerShares Russell Midcap Pure Value Portfolio | X | X | ||||
PowerShares Russell 2000 Equal Weight Portfolio | X | X | X | |||
PowerShares Russell 2000 Pure Growth Portfolio | X | X | ||||
PowerShares Russell 2000 Pure Value Portfolio | X | X | ||||
PowerShares Global Listed Private Equity Portfolio | N/A | X | ||||
PowerShares Golden Dragon China Portfolio | X | N/A | X | |||
PowerShares High Yield Equity Dividend Achievers Portfolio | X | X | ||||
PowerShares International Dividend Achievers Portfolio | X | X | X | |||
PowerShares S&P 500 Quality Portfolio | X | X | X | |||
PowerShares Water Resources Portfolio | X | |||||
PowerShares WilderHill Clean Energy Portfolio | X | |||||
PowerShares WilderHill Progressive Energy Portfolio | X | |||||
PowerShares Zacks Micro Cap Portfolio | X |
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Board Considerations Regarding Continuation of Investment Advisory
Agreement (continued)
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 overall profitability as well as the estimated profitability to the Adviser from its relationship to each Fund. The Trustees concluded that the overall and estimated profitability to the Adviser 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 Cap agreed to by the Adviser. 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 DWA NASDAQ Momentum 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.
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.
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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 each Fund 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.
Frequency Distribution of Discounts and Premiums
A table showing the number of days the market price of each Fund’s shares was greater than the Fund’s net asset value, and the number of days it was less than the Fund’s net asset value (i.e., premium or discount) for the most recently completed calendar year, and the calendar quarters since that year end (or the life of the Fund, if shorter) may be found at the Fund’s website at www.invescopowershares.com.
©2016 Invesco PowerShares Capital Management LLC | P-PS-AR-1 | |||||
3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | ||||||
invescopowershares.com 800.983.0903 | @PowerShares |
April 30, 2016 |
2016 Annual Report to Shareholders
PBE | PowerShares Dynamic Biotechnology & Genome Portfolio | |
PKB | PowerShares Dynamic Building & Construction Portfolio | |
PXE | PowerShares Dynamic Energy Exploration & Production Portfolio | |
PBJ | PowerShares Dynamic Food & Beverage Portfolio | |
PEJ | PowerShares Dynamic Leisure and Entertainment Portfolio | |
PBS | PowerShares Dynamic Media Portfolio | |
PXQ | PowerShares Dynamic Networking Portfolio | |
PXJ | PowerShares Dynamic Oil & Gas Services Portfolio | |
PJP | PowerShares Dynamic Pharmaceuticals Portfolio | |
PMR | PowerShares Dynamic Retail Portfolio | |
PSI | PowerShares Dynamic Semiconductors Portfolio | |
PSJ | PowerShares Dynamic Software Portfolio |
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US Equity
Although the health of individual economic sectors varied dramatically, the US economy overall continued its slow but steady growth during the fiscal year ended April 30, 2016. This modest growth led to recurring debate over whether the US economy could withstand global recessionary forces. Many energy, industrial and materials companies experienced cyclical downturns resembling a mild recession even as many consumer-related companies benefited from continued low interest rates, increased availability of credit and a better employment picture. Another significant downturn in oil prices reduced capital investment but also reduced consumers’ energy and gasoline costs.
In the first half of the reporting period, US equity market performance was greatly affected by expectations of when, and whether, the US Federal Reserve (the “Fed”) might raise interest rates—and the impact the Fed’s action might have. Markets moved lower in the summer of 2015 as a significant downturn in China’s financial markets and weak global economic growth led to increased concern about the sustainability of US economic growth. In the fall, markets rallied and the Fed saw enough economic stabilization to finally raise interest rates.
US stocks began 2016 on a negative note. Together with a sharp decline in oil prices, this suggested a global recession might be imminent and caused investors to become decidedly risk averse; this helped short-term and income-oriented investments, but hurt longer-term and growth-oriented investments. As companies reported earnings and fundamentals that were better than had been feared, stocks rallied sharply in late February and March. Additionally, oil prices strengthened modestly on the back of a weaker US dollar and as Saudi Arabia and Russia considered a freeze on their oil output. Overall, US equity markets were mixed, with the S&P 500 Index, considered representative of the performance of the US stock market, finishing the reporting period modestly higher.
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PBE | Manager’s Analysis | |
PowerShares Dynamic Biotechnology & Genome Portfolio (PBE) |
As an index fund, the PowerShares Dynamic Biotechnology & Genome Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dynamic Biotech & Genome IntellidexSM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of biotechnology companies and genome companies that comprise the Index. These companies are engaged principally in the research, development, manufacture, marketing and distribution of various biotechnological products, services and processes, and are companies that benefit significantly from scientific and technological advances in biotechnology and genetic engineering and research.
NYSE Group, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its guidelines and mandated procedures, the Index Provider includes 30 biotechnology and genome stocks from a universe of the 2,000 largest U.S. stocks (by market capitalization) traded on the NYSE, NYSE MKT and the NASDAQ, after having ranked the stocks based on their capital appreciation potential using a proprietary NYSE Group IntellidexSM model. The Index Provider splits stocks in the Biotechnology & Genome Group Universe into quintiles based on market capitalization. Larger stocks are defined by inclusion in the top quintile and smaller stocks are the bottom four quintiles. The 8 top-ranked relatively larger stocks collectively receive 40% of the Index weighting (each stock receives on average a 5% weighting) and the 22 top-ranked relatively smaller stocks collectively receive 60% of the Index weighting (each stock receives on average a 2.73% weighting). The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned (24.88)%. On a net asset value (“NAV”) basis, the Fund returned (24.92)%. During the same time period, the Index returned (25.32)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to revenue generated through the Fund’s securities lending program offset by fees and operating expenses that the Fund incurred during the period.
During this same time period, the S&P Composite 1500 Biotech Index (the “Benchmark Index”) returned (7.90)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 19 securities. The Fund provided this comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a benchmark similar to the Index.
The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a representation of the biotechnology sub-industry. It is important to note, however, that the Index includes stocks from its Biotechnology & Genome Group Universe of which approximately 90% are considered pharmaceuticals, biotechnology and life sciences, while the remaining 10% of the Index contains stocks in other industry groups including materials, health care equipment & services, and technology hardware & equipment. The Benchmark Index contains 100% biotechnology companies. Therefore, although the Benchmark Index is relevant as a comparison, the pure biotechnology exposure represented by the Benchmark Index may produce potentially significant differences in performance when compared to the Fund. Relative to the Benchmark Index, the Fund was most overweight in the pharmaceuticals sub-industry and most underweight in the biotechnology sub-industry during the fiscal year ended April 30, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to the Fund’s allocation to the biotechnology sub-industry.
For the fiscal year ended April 30, 2016, there were no contributing sub-industries. The biotechnology sub-industry detracted most significantly from the Fund’s return, followed by the health care equipment and pharmaceuticals sub-industries, respectively.
Positions that contributed most significantly to the Fund’s return included Neurocrine Biosciences, Inc., a biotechnology company (portfolio average weight of 2.22%), and Innoviva, Inc., a pharmaceuticals company (portfolio average weight of 2.11%). Positions that detracted most significantly from the Fund’s return included BioCryst Pharmaceuticals, Inc., a biotechnology company (no longer held at fiscal year-end), and MannKind Corp., a biotechnology company (no longer held at fiscal year-end).
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PowerShares Dynamic Biotechnology & Genome Portfolio (PBE) (continued)
Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Biotechnology | 95.1 | |||
Pharmaceuticals | 4.9 | |||
Money Market Funds Plus Other Assets Less Liabilities | 0.0 | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
Amgen, Inc. | 5.0 | |||
BioMarin Pharmaceutical, Inc. | 5.0 | |||
Biogen, Inc. | 4.9 | |||
Gilead Sciences, Inc. | 4.7 | |||
Alexion Pharmaceuticals, Inc. | 4.7 | |||
Incyte Corp. | 4.6 | |||
Vertex Pharmaceuticals, Inc. | 4.6 | |||
Regeneron Pharmaceuticals, Inc. | 4.5 | |||
Medivation, Inc. | 4.2 | |||
Lexicon Pharmaceuticals, Inc. | 3.9 | |||
Total | 46.1 |
* | Excluding money market fund holdings. |
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PowerShares Dynamic Biotechnology & Genome Portfolio (PBE) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2016
1 Year | 3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years Cumulative | 10 Years Average Annualized | 10 Years Cumulative | Fund Inception† | |||||||||||||||||||||||||||||||
Index | Average | Cumulative | ||||||||||||||||||||||||||||||||||||
Dynamic Biotechnology & Genome IntellidexSM Index | (25.32 | )% | 12.34 | % | 41.78 | % | 11.92 | % | 75.63 | % | 9.28 | % | 142.89 | % | 10.12 | % | 184.75 | % | ||||||||||||||||||||
S&P Composite 1500 Biotech Index | (7.90 | ) | 17.96 | 64.15 | 27.15 | 232.35 | 15.33 | 316.41 | 15.72 | 387.90 | ||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||
NAV Return | (24.92 | ) | 12.30 | 41.62 | 11.58 | 72.96 | 8.84 | 133.23 | 9.71 | 173.35 | ||||||||||||||||||||||||||||
Market Price Return | (24.88 | ) | 12.29 | 41.57 | 11.54 | 72.66 | 8.82 | 132.96 | 9.70 | 173.17 |
Fund Inception: June 23, 2005
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.57%. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund
at NAV and Market 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 and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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.
† | Fund, Index and Benchmark Index returns are based on the inception date of the Fund. |
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PKB | Manager’s Analysis | |
PowerShares Dynamic Building & Construction Portfolio (PKB) |
As an index fund, the PowerShares Dynamic Building & Construction Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. 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 of building and construction companies that comprise the Index. These companies are engaged primarily 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.
NYSE Group, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its guidelines and mandated procedures, the Index Provider includes 30 building and construction stocks from a universe of the 2,000 largest U.S. stocks (by market capitalization) traded on the NYSE, NYSE MKT and the NASDAQ, after having ranked companies based on their capital appreciation potential using a proprietary NYSE Group IntellidexSM model. The Index Provider splits stocks in the Building & Construction Industry Group Universe into quintiles based on market capitalization. Larger stocks are defined by inclusion in the top quintile and smaller stocks are the bottom four quintiles. The 8 top-ranked relatively larger stocks collectively receive 40% of the Index weighting (each stock receives on average a 5% weighting) and the 22 top-ranked relatively smaller stocks collectively receive 60% of the Index weighting (each stock receives on average a 2.73% weighting). The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned 9.26%. On a net asset value (“NAV”) basis, the Fund returned 9.21%. During the same time period, the Index returned 9.98%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.
During this same time period, the S&P Composite 1500 Construction & Engineering Index (the “Benchmark Index”) returned 1.01%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 15 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of another building & construction industry benchmark. The Benchmark Index was also selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a representation of the building & construction industry.
The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an index that employs a modified equal weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.
Relative to the Benchmark Index, the Fund was most overweight in the building products sub-industry and most underweight in the construction & engineering sub-industry during the fiscal year ended April 30, 2016. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to the Fund’s allocation among the building products and construction materials sub-industries, as well as stock selection within the construction & engineering sub-industry.
For the fiscal year ended April 30, 2016, the construction materials sub-industry contributed most significantly to the Fund’s return, followed by the building products and construction & engineering sub-industries, respectively. The industrial machinery sub-industry detracted most significantly from the Fund’s return, followed by the forest products and construction machinery & heavy trucks sub-industries, respectively.
Positions that contributed most significantly to the Fund’s return included Vulcan Materials Co., a construction materials company (portfolio average weight of 5.04%), and The Home Depot, Inc., a home improvement retail company (portfolio average weight of 5.05%). Positions that detracted most significantly from the Fund’s return included Boise Cascade Co., a forest products company (portfolio average weight of 2.50%), and Ingersoll-Rand PLC, an industrial machinery company (no longer held at fiscal year-end).
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PowerShares Dynamic Building & Construction Portfolio (PKB) (continued)
Sub-Industry Breakdown | ||||
Construction & Engineering | 24.9 | |||
Building Products | 23.6 | |||
Construction Materials | 18.5 | |||
Home Improvement Retail | 9.6 | |||
Homebuilding | 9.5 | |||
Forest Products | 3.0 | |||
Heavy Electrical Equipment | 3.0 | |||
Multi-Utilities | 2.7 | |||
Distributors | 2.6 | |||
Environmental & Facilities Services | 2.6 | |||
Money Market Fund Plus Other Assets Less Liabilities | 0.0 | |||
Top Ten Fund Holdings* | ||||
Security | ||||
Martin Marietta Materials, Inc. | 5.3 | |||
Fluor Corp. | 5.2 | |||
D.R. Horton, Inc. | 4.9 | |||
Lowe’s Cos., Inc. | 4.9 | |||
Vulcan Materials Co. | 4.9 | |||
A.O. Smith Corp. | 4.8 | |||
Home Depot, Inc. (The) | 4.7 | |||
NVR, Inc. | 4.6 | |||
Builders FirstSource, Inc. | 3.4 | |||
MasTec, Inc. | 3.4 | |||
Total | 46.1 |
* | Excluding money market fund holdings. |
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PowerShares Dynamic Building & Construction Portfolio (PKB) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2016
1 Year | 3 Years | 3 Years | 5 Years | 5 Years | 10 Years | 10 Years | Fund Inception† | |||||||||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||||||||||
Dynamic Building & Construction IntellidexSM Index | 9.98 | % | 9.30 | % | 30.57 | % | 13.29 | % | 86.60 | % | 4.89 | % | 61.22 | % | 6.45 | % | 92.88 | % | ||||||||||||||||||||
S&P Composite 1500 Construction & Engineering Index | 1.01 | 1.44 | 4.38 | 0.55 | 2.81 | 3.02 | 34.71 | 6.06 | 85.66 | |||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||
NAV Return | 9.21 | 8.55 | 27.90 | 12.39 | 79.35 | 4.03 | 48.43 | 5.56 | 76.63 | |||||||||||||||||||||||||||||
Market Price Return | 9.26 | 8.58 | 28.03 | 12.43 | 79.61 | 4.03 | 48.52 | 5.56 | 76.51 |
Fund Inception: October 26, 2005
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.65% and the net annual operating expense ratio was indicated as 0.63%. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund
at NAV and Market 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 and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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.
† | Fund, Index and Benchmark Index returns are based on the inception date of the Fund. |
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PXE | Manager’s Analysis | |
PowerShares Dynamic Energy Exploration & Production Portfolio (PXE) |
As an index fund, the PowerShares Dynamic Energy Exploration & Production Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. 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 of companies engaged in energy exploration and production that comprise the Index. These companies are engaged principally in exploration, extraction and production of crude oil and natural gas from land-based or offshore wells.
NYSE Group, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its guidelines and mandated procedures, the Index Provider includes 30 energy exploration and production stocks from the 2,000 largest U.S. stocks (by market capitalization) traded on the NYSE, NYSE MKT and the NASDAQ, after having ranked the stocks for investment potential using a proprietary NYSE Group IntellidexSM model. The Index Provider splits stocks in the Energy Exploration & Production Industry Group Universe into quintiles based on market capitalization. Larger stocks are defined by inclusion in the top quintile and smaller stocks are the bottom four quintiles. The 8 top-ranked relatively larger stocks collectively receive 40% of the Index weighting (each stock receives on average a 5% weighting) and the 22 top-ranked relatively smaller stocks which receive 60% of the Index weighting (each stock receives on average a 2.73% weighting). The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned (26.91)%. On a net asset value (“NAV”) basis, the Fund returned (26.93)%. During the same time period, the Index returned (26.99)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to revenue generated through the Fund’s securities lending program offset by fees and operating expenses that the Fund incurred during the period.
During this same time period, the S&P Composite 1500 Oil & Gas Exploration & Production Index (the “Benchmark Index”) returned (29.54)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 35 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a similar energy exploration & production sub-industry benchmark. The Benchmark Index was also selected for its recognition in the marketplace, and its shared exposure to the oil & gas exploration & production sub-industry.
The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a modified equal weighting and stock selection methodology whereas the
Benchmark Index selects and weights stocks based on market capitalization.
Relative to the Benchmark Index, the Fund was most overweight in the oil & gas refining & marketing sub-industry and most underweight in the oil & gas exploration & production sub-industry during the fiscal year ended April 30, 2016. The majority of the Fund’s outperformance relative to the Benchmark Index during that period can be attributed to the Fund’s allocation to the integrated oil & gas sub-industry.
For the fiscal year ended April 30, 2016, the integrated oil & gas sub-industry was the only contributing sub-industry. The oil & gas refining & marketing sub-industry detracted most significantly from the Fund’s return, followed by the oil & gas exploration & production sub-industry.
Positions that contributed most significantly to the Fund’s return included Whiting Petroleum Corp., an oil & gas exploration & production company (portfolio average weight of 1.07%), and SM Energy Co., an oil & gas exploration & production company (portfolio average weight of 2.81%). Positions that detracted most significantly from the Fund’s return included Devon Energy Corp., an oil & gas exploration & production company (no longer held at fiscal year-end), and EP Energy Corp. Class A, an oil & gas exploration & production company (no longer held at fiscal year-end).
Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Oil & Gas Exploration & Production | 64.8 | |||
Oil & Gas Refining & Marketing | 31.1 | |||
Integrated Oil & Gas | 4.1 | |||
Money Market Funds Plus Other Assets Less Liabilities | (0.0) | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
SM Energy Co. | 7.1 | |||
Whiting Petroleum Corp. | 6.2 | |||
ConocoPhillips | 5.2 | |||
Hess Corp. | 5.1 | |||
Pioneer Natural Resources Co. | 5.0 | |||
WPX Energy, Inc. | 4.6 | |||
EOG Resources, Inc. | 4.5 | |||
Southwestern Energy Co. | 4.2 | |||
Marathon Petroleum Corp. | 4.2 | |||
Occidental Petroleum Corp. | 4.0 | |||
Total | 50.1 |
* | Excluding money market fund holdings. |
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PowerShares Dynamic Energy Exploration & Production Portfolio (PXE) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2016
1 Year | 3 Years | 3 Years | 5 Years | 5 Years | 10 Years Average Annualized | 10 Years Cumulative | Fund Inception† | |||||||||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||||||||||
Dynamic Energy Exploration & Production IntellidexSM Index | (26.99 | )% | (7.05 | )% | (19.70 | )% | (1.49 | )% | (7.21 | )% | 3.79 | % | 45.03 | % | 5.13 | % | 69.27 | % | ||||||||||||||||||||
S&P Composite 1500 Oil & Gas Exploration & Production Index | (29.54 | ) | (7.24 | ) | (20.18 | ) | (6.72 | ) | (29.38 | ) | 1.83 | 19.84 | 2.75 | 33.02 | ||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||
NAV Return | (26.93 | ) | (7.44 | ) | (20.71 | ) | (2.05 | ) | (9.84 | ) | 3.19 | 36.87 | 4.52 | 59.22 | ||||||||||||||||||||||||
Market Price Return | (26.91 | ) | (7.40 | ) | (20.60 | ) | (2.04 | ) | (9.78 | ) | 3.17 | 36.65 | 4.51 | 59.03 |
Fund Inception: October 26, 2005
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund
at NAV and Market 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 and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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.
† | Fund, Index and Benchmark Index returns are based on the inception date of the Fund. |
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PBJ | Manager’s Analysis | |
PowerShares Dynamic Food & Beverage Portfolio (PBJ) |
As an index fund, the PowerShares Dynamic Food & Beverage Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. 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 of food and beverage companies that comprise the Index. These companies are engaged principally in the manufacture, sale or distribution of food and beverage products, agricultural products and products related to the development of new food technologies.
NYSE Group, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its guidelines and mandated procedures, the Index Provider includes 30 food and beverage stocks from a universe of the 2,000 largest U.S. stocks (by market capitalization) traded on the NYSE, NYSE MKT and the NASDAQ after having ranked the stocks based on their capital appreciation potential using a proprietary NYSE Group IntellidexSM model. The Index Provider splits stocks in the Food & Beverage Group Universe into quintiles based on market capitalization. Larger stocks are defined by inclusion in the top quintile and smaller stocks are the bottom four quintiles. The 8 top-ranked relatively larger stocks collectively receive 40% of the Index weighting (each stock receives on average a 5% weighting) and the 22 top-ranked relatively smaller stocks collectively receive 60% of the Index weighting (each stock receives on average a 2.73% weighting). The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned 4.10%. On a net asset value (“NAV”) basis, the Fund returned 4.06%. During the same time period, the Index returned 4.71%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.
During this same time period, the S&P Composite 1500 Food Beverage & Tobacco Index (the “Benchmark Index”) returned 17.54%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 40 securities. The Fund provided this comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a similar food & beverage benchmark.
The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a representation of the food & beverage industry.
The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a modified equal weighting and stock selection methodology whereas the Benchmark Index selects and weights stocks based on market capitalization.
Relative to the Benchmark Index, the Fund was most overweight in the food retail sub-industry and most underweight in the tobacco sub-industry during the fiscal year ended April 30, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to the Fund’s allocation to the food retail sub-industry.
For the fiscal year ended April 30, 2016, the packaged foods & meats sub-industry contributed most significantly to the Fund’s return, followed by the restaurants and soft drinks sub-industries, respectively. The food retail sub-industry detracted most significantly from the Fund’s return, followed by the agricultural products sub-industry.
Positions that contributed most significantly to the Fund’s return included Tyson Foods, Inc. Class A, a consumer staples company (portfolio average weight of 2.28%), and Ingredion, Inc., a consumer staples company (portfolio average weight of 2.77%). Positions that detracted most significantly from the Fund’s return included SUPERVALU, Inc., a consumer staples company (portfolio average weight of 2.47%), and Bunge Limited, a consumer staples company (no longer held at fiscal year-end).
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PowerShares Dynamic Food & Beverage Portfolio (PBJ) (continued)
Sub-Industry Breakdown | ||||
Packaged Foods & Meats | 46.6 | |||
Restaurants | 15.7 | |||
Food Retail | 10.0 | |||
Agricultural Products | 8.9 | |||
Soft Drinks | 8.3 | |||
Distillers & Vintners | 5.3 | |||
Food Distributors | 5.2 | |||
Money Market Fund Plus Other Assets Less Liabilities | (0.0) | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
Constellation Brands, Inc., Class A | 5.4 | |||
McDonald’s Corp. | 5.3 | |||
Sysco Corp. | 5.2 | |||
Mondelez International, Inc., Class A | 5.1 | |||
Tyson Foods, Inc., Class A | 4.9 | |||
Starbucks Corp. | 4.7 | |||
Hormel Foods Corp. | 4.4 | |||
Kroger Co. (The) | 4.4 | |||
Sonic Corp. | 3.3 | |||
National Beverage Corp. | 3.3 | |||
Total | 46.0 |
* | Excluding money market fund holdings. |
| 13 |
|
PowerShares Dynamic Food & Beverage Portfolio (PBJ) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2016
1 Year | 3 Years Average | 3 Years Cumulative | 5 Years Average | 5 Years Cumulative | 10 Years | 10 Years Cumulative | Fund Inception† | |||||||||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||||||||||
Dynamic Food & Beverage IntellidexSM Index | 4.71 | % | 13.06 | % | 44.54 | % | 12.44 | % | 79.75 | % | 10.19 | % | 163.77 | % | 9.69 | % | 172.72 | % | ||||||||||||||||||||
S&P Composite 1500 Food Beverage & Tobacco Index | 17.54 | 13.58 | 46.51 | 15.17 | 102.59 | 13.71 | 261.56 | 13.30 | 287.78 | |||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||
NAV Return | 4.06 | 12.32 | 41.71 | 11.70 | 73.86 | 9.46 | 146.83 | 8.96 | 153.71 | |||||||||||||||||||||||||||||
Market Price Return | 4.10 | 12.32 | 41.72 | 11.63 | 73.36 | 9.45 | 146.77 | 8.95 | 153.63 |
Fund Inception: June 23, 2005
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.58%. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund
at NAV and Market 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 and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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.
† | Fund, Index and Benchmark Index returns are based on the inception date of the Fund. |
| 14 |
|
PEJ | Manager’s Analysis | |
PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ) |
As an index fund, the PowerShares Dynamic Leisure and Entertainment Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dynamic Leisure & Entertainment IntellidexSM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of leisure companies and entertainment companies that comprise the Index. These companies are engaged principally in the design, production or distribution of goods or services in the leisure and entertainment industries.
NYSE Group, Inc. (or the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its guidelines and mandated procedures, the Index Provider includes 30 leisure and entertainment stocks from a universe of the 2,000 largest U.S. stocks (by market capitalization) traded on the NYSE, NYSE MKT and the NASDAQ, after having ranked the stocks based on their capital appreciation potential using a proprietary NYSE Group IntellidexSM model. The Index Provider splits stocks in the Leisure and Entertainment Group Universe into quintiles based on market capitalization. Larger stocks are defined by inclusion in the top quintile and smaller stocks are the bottom four quintiles. The 8 top-ranked relatively larger stocks collectively receive 40% of the Index weighting (each stock receives on average a 5% weighting) and the 22 top-ranked relatively smaller stocks collectively receive 60% of the Index weighting (each stock receives on average a 2.73% weighting). The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned (1.73)%. On a net asset value (“NAV”) basis, the Fund returned (1.73)%. During the same time period, the Index returned (1.03)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.
During this same time period, the S&P Composite 1500 Hotels, Restaurants & Leisure Index (the “Benchmark Index”) returned 9.33%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 40 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compares to another leisure and entertainment industry benchmark.
The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a representation of the leisure and entertainment industry.
The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a modified equal weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.
Relative to the Benchmark Index, the Fund was most overweight in the airlines sub-industry and most underweight in the restaurants sub-industry during the fiscal year ended April 30, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s allocation to and stock selection within the restaurants sub-industry.
For the fiscal year ended April 30, 2016, the airlines sub-industry contributed most significantly to the Fund’s return, followed by the restaurants and leisure facilities sub-industries, respectively. The hotels, resorts & cruise lines sub-industry detracted most significantly from the Fund’s return, followed by the cable & satellite and movies & entertainment sub-industries, respectively.
Positions that contributed most significantly to the Fund’s return included Hawaiian Holdings, Inc., an airlines company (portfolio average weight of 3.02%), and Virgin America, Inc., an airlines company (portfolio average weight of 1.95%). Positions that detracted most significantly from the Fund’s return included Diamond Resorts International, Inc., a hotels resorts & cruise lines company (no longer held at fiscal year-end), and American Airlines Group, Inc., an airlines company (portfolio average weight of 5.06%).
| 15 |
|
PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ) (continued)
Sub-Industry Breakdown | ||||
Restaurants | 37.1 | |||
Airlines | 35.9 | |||
Leisure Facilities | 8.5 | |||
Casinos & Gaming | 5.4 | |||
Internet Retail | 5.2 | |||
Hotels, Resorts & Cruise Lines | 5.0 | |||
Cable & Satellite | 3.0 | |||
Money Market Fund Plus Other Assets Less Liabilities | (0.1) | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
McDonald’s Corp. | 5.3 | |||
Priceline Group, Inc. (The) | 5.2 | |||
Southwest Airlines Co. | 5.2 | |||
Carnival Corp. | 4.9 | |||
Virgin America, Inc. | 4.8 | |||
Starbucks Corp. | 4.7 | |||
Delta Air Lines, Inc. | 4.2 | |||
American Airlines Group, Inc. | 4.1 | |||
United Continental Holdings, Inc. | 3.9 | |||
SkyWest, Inc. | 3.5 | |||
Total | 45.8 |
* | Excluding money market fund holdings. |
| 16 |
|
PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2016
1 Year | 3 Years | 3 Years | 5 Years | 5 Years | 10 Years Average Annualized | 10 Years Cumulative | Fund Inception† | |||||||||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||||||||||
Dynamic Leisure & Entertainment IntellidexSM Index | (1.03 | )% | 10.79 | % | 35.99 | % | 14.57 | % | 97.41 | % | 9.80 | % | 154.66 | % | 10.06 | % | 182.88 | % | ||||||||||||||||||||
S&P Composite 1500 Hotels, Restaurants & Leisure Index | 9.33 | 12.90 | 43.91 | 14.22 | 94.43 | 11.16 | 187.95 | 11.53 | 226.88 | |||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||
NAV Return | (1.73 | ) | 9.98 | 33.01 | 13.70 | 89.98 | 9.14 | 139.78 | 9.39 | 164.74 | ||||||||||||||||||||||||||||
Market Price Return | (1.73 | ) | 9.99 | 33.08 | 13.69 | 89.92 | 9.13 | 139.63 | 9.39 | 164.75 |
Fund Inception: June 23, 2005
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.63%. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund
at NAV and Market 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 and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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.
† | Fund, Index and Benchmark Index returns are based on the inception date of the Fund. |
| 17 |
|
PBS | Manager’s Analysis | |
PowerShares Dynamic Media Portfolio (PBS) |
As an index fund, the PowerShares Dynamic Media Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. 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 of media companies that comprise the Index. These companies are engaged principally in the development, production, sale and distribution of goods or services used in the media industry.
NYSE Group, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its guidelines and mandated procedures, the Index Provider includes 30 media stocks from a universe of the 2,000 largest U.S. stocks (by market capitalization) traded on the NYSE, NYSE MKT and the NASDAQ. The Index Provider ranks the stocks based on their capital appreciation potential using a proprietary NYSE Group IntellidexSM model. The Index Provider splits stocks in the Media Group Universe into quintiles based on market capitalization. Larger stocks are defined by inclusion in the top quintile and smaller stocks are the bottom four quintiles. The 8 top-ranked relatively larger stocks collectively receive 40% of the Index weighting (each stock receives on average a 5% weighting) and the 22 top-ranked relatively smaller stocks collectively receive 60% of the Index weighting (each stock receives on average a 2.73% weighting). The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned (5.18)%. On a net asset value (“NAV”) basis, the Fund returned (5.18)%. During the same time period, the Index returned (4.51)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.
During this same time period, the S&P Composite 1500 Media Index (the “Benchmark Index”) returned (0.89)%. The S&P Composite 1500 Media Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 30 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a media industry benchmark.
The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a general representation of the media industry.
The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a modified
equal weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.
Relative to the Benchmark Index, the Fund was most overweight in the internet software & services sub-industry and most underweight in the movies & entertainment sub-industry during the fiscal year ended April 30, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s allocation to and stock selection within the cable & satellite sub-industry.
For the fiscal year ended April 30, 2016, the internet software & services sub-industry contributed most significantly to the Fund’s return, followed by the publishing and specialized REITs sub-industries, respectively. The broadcasting sub-industry detracted most significantly from the Fund’s return, followed by the movies & entertainment and internet retail sub-industries, respectively.
Positions that contributed most significantly to the Fund’s return included Facebook, Inc., Class A, an information technology company (portfolio average weight of 3.88%), and Cablevision Systems Corporation, Class A, a consumer discretionary company (portfolio average weight of 3.04%). Positions that detracted most significantly from the Fund’s return included Viacom Inc., Class B, a consumer discretionary company (portfolio average weight of 2.14%), and Clear Channel Outdoor Holdings, Inc., Class A, a consumer discretionary company (no longer held at fiscal year-end).
| 18 |
|
PowerShares Dynamic Media Portfolio (PBS) (continued)
Sub-Industry Breakdown | ||||
Movies & Entertainment | 22.0 | |||
Broadcasting | 18.7 | |||
Internet Software & Services | 15.3 | |||
Cable & Satellite | 12.7 | |||
Advertising | 9.9 | |||
Publishing | 8.4 | |||
Research & Consulting Services | 2.9 | |||
Diversified Support Services | 2.7 | |||
IT Consulting & Other Services | 2.6 | |||
Catalog Retail | 2.5 | |||
Data Processing & Outsourced Services | 2.4 | |||
Money Market Fund Plus Other Assets Less Liabilities | (0.1) | |||
Top Ten Fund Holdings* | ||||
Security | ||||
CBS Corp., Class B | 5.3 | |||
Time Warner, Inc. | 5.1 | |||
Twenty-First Century Fox, Inc., Class A | 5.1 | |||
Facebook, Inc., Class A | 5.0 | |||
Walt Disney Co. (The) | 4.9 | |||
Sirius XM Holdings, Inc. | 4.9 | |||
Omnicom Group, Inc. | 4.9 | |||
Alphabet, Inc., Class A | 4.5 | |||
DreamWorks Animation SKG, Inc., Class A | 4.0 | |||
Bankrate, Inc. | 3.1 | |||
Total | 46.8 |
* | Excluding money market fund holdings. |
| 19 |
|
PowerShares Dynamic Media Portfolio (PBS) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2016
1 Year | 3 Years | 3 Years | 5 Years | 5 Years | 10 Years Average Annualized | 10 Years Cumulative | Fund Inception† | |||||||||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||||||||||
Dynamic Media IntellidexSM Index | (4.51 | )% | 9.16 | % | 30.08 | % | 11.53 | % | 72.58 | % | 7.04 | % | 97.52 | % | 6.24 | % | 92.80 | % | ||||||||||||||||||||
S&P Composite 1500 Media Index | (0.89 | ) | 13.41 | 45.86 | 16.88 | 118.12 | 10.77 | 178.15 | 9.92 | 179.03 | ||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||
NAV Return | (5.18 | ) | 8.41 | 27.40 | 10.74 | 66.52 | 6.44 | 86.59 | 5.60 | 80.72 | ||||||||||||||||||||||||||||
Market Price Return | (5.18 | ) | 8.41 | 27.41 | 10.73 | 66.46 | 6.43 | 86.51 | 5.60 | 80.65 |
Fund Inception: June 23, 2005
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.59%. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund
at NAV and Market 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 and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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.
† | Fund, Index and Benchmark Index returns are based on the inception date of the Fund. |
| 20 |
|
PXQ | Manager’s Analysis | |
PowerShares Dynamic Networking Portfolio (PXQ) |
As an index fund, the PowerShares Dynamic Networking Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. 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 of networking companies that comprise the Index. These companies are engaged principally in the development, manufacture, sale or distribution of products, services or technologies that support the flow of electronic information, including voice, data, images and commercial transactions.
NYSE Group, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its guidelines and mandated procedures, the Index Provider includes 30 common stocks of networking companies in the Index principally on the basis of their capital appreciation potential that the Index Provider identifies pursuant to a proprietary selection methodology. The Index Provider includes networking stocks from the 2,000 largest U.S. stocks (by market capitalization) traded on the NYSE, NYSE MKT and the NASDAQ, after having ranked the stocks for investment potential using a proprietary NYSE Group IntellidexSM model. The Index Provider splits stocks in the Networking Group Universe into quintiles based on market capitalization. Larger stocks are defined by inclusion in the top quintile and smaller stocks are the bottom four quintiles. The 8 top-ranked relatively larger stocks collectively receive 40% of the Index weighting (each stock receives on average a 5% weighting) and the 22 top-ranked relatively smaller stocks collectively receive 60% of the Index weighting (each stock receives on average a 2.73% weighting). The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned (8.16)%. On a net asset value (“NAV”) basis, the Fund returned (8.19)%. During the same time period, the Index returned (7.85)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period; however, that underperformance due to fees and expenses was partially offset by revenue generated through the Fund’s securities lending program.
During this same time period, the S&P Composite 1500 Communications Equipment Index (the “Benchmark Index”) returned (8.18)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 25 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a similar networking industry benchmark.
The Benchmark Index was selected for its recognition in the marketplace, and its exposure to the communications equipment sub-industry. These reasons make its performance relevant when comparing to the Fund’s performance. The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a modified equal weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.
Relative to the Benchmark Index, the Fund was most overweight in the systems software sub-industry and most underweight in the semiconductors sub-industry during the fiscal year ended April 30, 2016. The Fund’s NAV basis return for the period was in line with that of the Benchmark Index; however, differences resulted primarily due to the Fund’s allocation to the systems software sub-industry as well as fees and operating expenses that the Fund incurred during the period, which were partially offset by revenue generated through the Fund’s securities lending program.
For the fiscal year ended April 30, 2016, the application software sub-industry contributed most significantly to the Fund’s return, followed by the electronic components and semiconductors sub-industries, respectively. The systems software sub-industry detracted most significantly from the Fund’s return, followed by the electronic equipment & instruments and technology hardware storage & peripherals sub-industries, respectively.
Positions that contributed most significantly to the Fund’s return included Motorola Solutions, Inc., a communications equipment company (portfolio average weight of 4.69%), and Citrix Systems, Inc., an application software company (portfolio average weight of 4.74%). Positions that detracted most significantly from the Fund’s return included CyberArk Software Ltd., a systems software company (no longer held at fiscal year-end), and Qualys, Inc., a systems software company (no longer held at fiscal year-end).
| 21 |
|
PowerShares Dynamic Networking Portfolio (PXQ) (continued)
Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Communications Equipment | 64.7 | |||
Systems Software | 18.4 | |||
Application Software | 5.4 | |||
Electronic Components | 5.0 | |||
Electronic Equipment & Instruments | 3.9 | |||
Electronic Manufacturing Services | 2.6 | |||
Money Market Funds Plus Other Assets Less Liabilities | 0.0 | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
Citrix Systems, Inc. | 5.4 | |||
Amphenol Corp., Class A | 5.0 | |||
Cisco Systems, Inc. | 4.9 | |||
Palo Alto Networks, Inc. | 4.8 | |||
CA, Inc. | 4.8 | |||
Motorola Solutions, Inc. | 4.8 | |||
Check Point Software Technologies Ltd. | 4.7 | |||
Juniper Networks, Inc. | 4.5 | |||
Fitbit, Inc., Class A | 3.9 | |||
Ruckus Wireless, Inc. | 3.7 | |||
Total | 46.5 |
* | Excluding money market fund holdings. |
| 22 |
|
PowerShares Dynamic Networking Portfolio (PXQ) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2016
1 Year | 3 Years Average | 3 Years Cumulative | 5 Years Average Annualized | 5 Years Cumulative | 10 Years | 10 Years | Fund Inception† | |||||||||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||||||||||
Dynamic Networking IntellidexSM Index | (7.85 | )% | 11.31 | % | 37.93 | % | 3.74 | % | 20.18 | % | 7.70 | % | 109.97 | % | 8.57 | % | 144.20 | % | ||||||||||||||||||||
S&P Composite 1500 Communications Equipment Index | (8.18 | ) | 6.47 | 20.69 | 5.16 | 28.62 | 1.78 | 19.24 | 3.59 | 46.67 | ||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||
NAV Return | (8.19 | ) | 10.67 | 35.56 | 3.07 | 16.33 | 6.97 | 96.25 | 7.89 | 128.00 | ||||||||||||||||||||||||||||
Market Price Return | (8.16 | ) | 10.72 | 35.72 | 3.07 | 16.33 | 6.99 | 96.59 | 7.89 | 128.00 |
Fund Inception: June 23, 2005
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.85% and the net annual operating expense ratio was indicated as 0.63%. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund
at NAV and Market 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 and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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.
† | Fund, Index and Benchmark Index returns are based on the inception date of the Fund. |
| 23 |
|
PXJ | Manager’s Analysis | |
PowerShares Dynamic Oil & Gas Services Portfolio (PXJ) |
As an index fund, the PowerShares Dynamic Oil & Gas Services Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. 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 of companies that assist in the production, processing and distribution of oil and gas that comprise the Index. These companies are engaged in the drilling of oil and gas wells; manufacturing oil and gas field machinery and equipment; or providing services to the oil and gas industry, such as well analysis, platform and pipeline engineering and construction, logistics and transportation services, oil and gas well emergency management and geophysical data acquisition and processing.
NYSE Group, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its guidelines and mandated procedures, the Index Provider includes 30 common stocks of oil and gas services companies in the Index principally on the basis of their capital appreciation potential that the Index Provider identifies pursuant to a proprietary selection methodology. The Index Provider includes stocks of companies that provide support for oil and gas operations from the 2,000 largest U.S. stocks (by market capitalization) traded on the NYSE, NYSE MKT and the NASDAQ, after having ranked the stocks for investment potential using a proprietary NYSE Group IntellidexSM model. The Index Provider splits stocks in the Oil Services Industry Group Universe into quintiles based on market capitalization. Larger stocks are defined by inclusion in the top quintile and smaller stocks are the bottom four quintiles. The 8 top-ranked relatively larger stocks collectively receive 40% of the Index weighting (each stock receives on average a 5% weighting) and the 22 top-ranked relatively smaller stocks collectively receive 60% of the Index weighting (each stock receives on average a 2.73% weighting). The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned (29.15)%. On a net asset value (“NAV”) basis, the Fund returned (29.06)%. During the same time period, the Index returned (28.64)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.
During this same time period, the S&P Composite 1500 Energy Equipment & Services Index (the “Benchmark Index”) returned (19.81)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 40 securities. The Fund provided this additional comparative benchmark to help investors better understand how
the investment results of the Fund compare to the performance of a similar oil & gas services industry benchmark.
The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a representation of the oil & gas services industry.
The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a modified equal weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.
Relative to the Benchmark Index, the Fund was most overweight in the oil & gas drilling sub-industry and most underweight in the oil & gas equipment & services sub-industry during the fiscal year ended April 30, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to stock selection within the oil & gas equipment & services sub-industry.
For the fiscal year ended April 30, 2016, there were no contributing sub-industries. The oil & gas equipment & services sub-industry detracted most significantly from the Fund’s return, followed by the oil & gas drilling and oil & gas storage & transportation sub-industries, respectively.
Positions that contributed most significantly to the Fund’s return included Cameron International Corporation, an oil & gas equipment & services company (no longer held at fiscal year-end), and RPC, Inc., an oil & gas equipment & services company (portfolio average weight of 2.16%). Positions that detracted most significantly from the Fund’s return included Atwood Oceanics, Inc., an oil & gas drilling company (no longer held at fiscal year-end), and Weatherford International PLC, an oil & gas equipment & services company (portfolio average weight of 4.34%).
| 24 |
|
PowerShares Dynamic Oil & Gas Services Portfolio (PXJ) (continued)
Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Oil & Gas Equipment & Services | 55.2 | |||
Oil & Gas Drilling | 32.9 | |||
Oil & Gas Storage & Transportation | 11.9 | |||
Money Market Funds Plus Other Assets Less Liabilities | (0.0) | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
Seadrill Ltd. | 5.3 | |||
Core Laboratories NV | 4.9 | |||
Weatherford International PLC | 4.9 | |||
Halliburton Co. | 4.9 | |||
National Oilwell Varco, Inc. | 4.8 | |||
Helmerich & Payne, Inc. | 4.8 | |||
FMC Technologies, Inc. | 4.8 | |||
Schlumberger Ltd. | 4.3 | |||
Baker Hughes, Inc. | 4.2 | |||
Forum Energy Technologies, Inc. | 3.2 | |||
Total | 46.1 |
* | Excluding money market fund holdings. |
| 25 |
|
PowerShares Dynamic Oil & Gas Services Portfolio (PXJ) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2016
1 Year | 3 Years Average | 3 Years Cumulative | 5 Years Average | 5 Years Cumulative | 10 Years Annualized | 10 Years Cumulative | Fund Inception† | |||||||||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||||||||||
Dynamic Oil Services IntellidexSM Index | (28.64 | )% | (14.82 | )% | (38.20 | )% | (11.76 | )% | (46.51 | )% | (3.71 | )% | (31.50 | )% | (1.04 | )% | (10.39 | )% | ||||||||||||||||||||
S&P Composite 1500 Energy Equipment & Services Index | (19.81 | ) | (5.20 | ) | (14.79 | ) | (6.00 | ) | (26.62 | ) | (0.07 | ) | (0.66 | ) | 3.04 | 37.02 | ||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||
NAV Return | (29.06 | ) | (15.39 | ) | (39.42 | ) | (12.35 | ) | (48.28 | ) | (4.29 | ) | (35.48 | ) | (1.64 | ) | (15.92 | ) | ||||||||||||||||||||
Market Price Return | (29.15 | ) | (15.41 | ) | (39.47 | ) | (12.37 | ) | (48.32 | ) | (4.31 | ) | (35.65 | ) | (1.64 | ) | (15.98 | ) |
Fund Inception: October 26, 2005
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.64% and the net annual operating expense ratio was indicated as 0.63%. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund
at NAV and Market 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 and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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.
† | Fund, Index and Benchmark Index returns are based on the inception date of the Fund. |
| 26 |
|
PJP | Manager’s Analysis | |
PowerShares Dynamic Pharmaceuticals Portfolio (PJP) |
As an index fund, the PowerShares Dynamic Pharmaceuticals Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dynamic Pharmaceutical IntellidexSM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of pharmaceutical companies that comprise the Index. These companies are engaged principally in the research, development, manufacture, sale or distribution of pharmaceuticals and drugs of all types, including companies that facilitate the testing or regulatory approval of drugs.
NYSE Group, Inc. (or the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its guidelines and mandated procedures, the Index Provider includes 30 pharmaceuticals stocks from a universe of the 2,000 largest U.S. stocks (by market capitalization) traded on the NYSE, NYSE MKT and the NASDAQ after having ranked the stocks based on their capital appreciation potential using a proprietary NYSE Group IntellidexSM model. The Index Provider splits stocks in the Pharmaceutical Group Universe into quintiles based on market capitalization. Larger stocks are defined by inclusion in the top quintile and smaller stocks are the bottom four quintiles. The 8 top-ranked relatively larger stocks collectively receive 40% of the Index weighting (each stock receives on average a 5% weighting) and the 22 top-ranked relatively smaller stocks collectively receive 60% of the Index weighting (each stock receives on average a 2.73% weighting). The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned (11.83)%. On a net asset value (“NAV”) basis, the Fund returned (11.86)%. During the same time period, the Index returned (11.39)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.
During this same time period, the S&P Composite 1500 Pharmaceuticals Index (the “Benchmark Index”) returned (1.39)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 25 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a similar pharmaceuticals sub-industry benchmark.
The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a general representation of the pharmaceuticals sub-industry.
The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a modified
equal weighting and stock selection methodology whereas the Benchmark Index selects and weights stocks based on market capitalization.
Relative to the Index, the Fund was most overweight in the biotechnology sub-industry and most underweight in the pharmaceuticals sub-industry during the fiscal year ended April 30, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to stock selection within the pharmaceuticals sub-industry.
For the fiscal year ended April 30, 2016, the health care equipment sub-industry was the only contributing sub-industry. The pharmaceuticals sub-industry detracted most significantly from the Fund’s return, followed by the biotechnology sub-industry.
Positions that contributed most significantly to the Fund’s return included Ligand Pharmaceuticals, Inc., a biotechnology company (portfolio average weight of 4.26%), and Prestige Brands Holdings, Inc., a pharmaceuticals company (portfolio average weight of 4.05%). Positions that detracted most significantly from the Fund’s return included Lannett Co., Inc., a pharmaceuticals company (portfolio average weight of 3.60%), and Perrigo Co. PLC, a pharmaceuticals company (portfolio average weight of 3.85%).
Sub-Industry Breakdown | ||||
Pharmaceuticals | 59.9 | |||
Biotechnology | 31.9 | |||
Health Care Equipment | 8.2 | |||
Money Market Funds Plus Other Assets Less Liabilities | 0.0 | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
Bristol-Myers Squibb Co. | 5.7 | |||
Merck & Co., Inc. | 5.3 | |||
Pfizer, Inc. | 5.3 | |||
Amgen, Inc. | 5.3 | |||
Johnson & Johnson | 5.2 | |||
Eli Lilly & Co. | 5.0 | |||
Gilead Sciences, Inc. | 4.9 | |||
Ligand Pharmaceuticals, Inc. | 4.9 | |||
Heron Therapeutics, Inc. | 4.5 | |||
Prestige Brands Holdings, Inc. | 4.4 | |||
Total | 50.5 |
* | Excluding money market fund holdings. |
| 27 |
|
PowerShares Dynamic Pharmaceuticals Portfolio (PJP) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2016
1 Year | 3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years Cumulative | 10 Years Average Annualized | 10 Years Cumulative | Fund Inception† | |||||||||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||||||||||
Dynamic Pharmaceutical IntellidexSM Index | (11.39 | )% | 19.25 | % | 69.58 | % | 22.33 | % | 173.90 | % | 16.61 | % | 365.05 | % | 16.42 | % | 420.81 | % | ||||||||||||||||||||
S&P Composite 1500 Pharmaceuticals Index | (1.39 | ) | 13.00 | 44.30 | 16.17 | 111.54 | 10.45 | 170.07 | 9.26 | 161.37 | ||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||
NAV Return | (11.86 | ) | 18.58 | 66.74 | 21.59 | 165.72 | 15.87 | 336.08 | 15.71 | 387.29 | ||||||||||||||||||||||||||||
Market Price Return | (11.83 | ) | 18.57 | 66.68 | 21.56 | 165.40 | 15.85 | 335.64 | 15.71 | 387.41 |
Fund Inception: June 23, 2005
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.56%. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund
at NAV and Market 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 and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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.
† | Fund, Index and Benchmark Index returns are based on the inception date of the Fund. |
| 28 |
|
PMR | Manager’s Analysis | |
PowerShares Dynamic Retail Portfolio (PMR) |
As an index fund, the PowerShares Dynamic Retail Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. 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 of retail companies that comprise the Index. These companies are engaged principally 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.
NYSE Group, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its guidelines and mandated procedures, the Index Provider includes 30 retail stocks from a universe of the 2,000 largest U.S. stocks (by market capitalization) traded on the NYSE, NYSE MKT and the NASDAQ after having ranked the stocks based on their capital appreciation potential using a proprietary NYSE Group IntellidexSM model. The Index Provider splits stocks in the Retail Industry Group Universe into quintiles based on market capitalization. Larger stocks are defined by inclusion in the top quintile and smaller stocks are the bottom four quintiles. The 8 top-ranked relatively larger stocks collectively receive 40% of the Index weighting (each stock receives on average a 5% weighting) and the 22 top-ranked relatively smaller stocks collectively receive 60% of the Index weighting (each stock receives on average a 2.73% weighting). The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned (6.42)%. On a net asset value (“NAV”) basis, the Fund returned (6.40)%. During the same time period, the Index returned (5.83)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.
During this same time period, the S&P Composite 1500 Retailing Index (the “Benchmark Index”) returned 13.35%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 30 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a retail industry benchmark.
The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the retail industry.
The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a modified equal weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.
Relative to the Benchmark Index, the Fund was most overweight in the food retail sub-industry and most underweight in the internet retail sub-industry during the fiscal year ended April 30, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s allocation to the internet retail sub-industry.
For the fiscal year ended April 30, 2016, the internet software & services sub-industry contributed most significantly to the Fund’s return, followed by the automotive retail and general merchandise stores sub-industries, respectively. The computer & electronics retail sub-industry detracted most significantly from the Fund’s return, followed by the food retail and forest products sub-industries, respectively.
Positions that contributed most significantly to the Fund’s return included Stamps.com, Inc., an internet software & services company (portfolio average weight of 2.84%), and The Home Depot, Inc. , a home improvement retail company (portfolio average weight of 4.63%). Positions that detracted most significantly from the Fund’s return included SUPERVALU, Inc., a food retail company (portfolio average weight of 2.51%), and Rent-A-Center, Inc., a computer & electronics retail company (no longer held at fiscal year-end).
| 29 |
|
PowerShares Dynamic Retail Portfolio (PMR) (continued)
Sub-Industry Breakdown | ||||
Apparel Retail | 28.1 | |||
Food Retail | 12.8 | |||
Drug Retail | 12.7 | |||
Automotive Retail | 9.7 | |||
Specialty Stores | 8.4 | |||
Trucking | 5.4 | |||
Home Improvement Retail | 5.2 | |||
General Merchandise Stores | 3.5 | |||
Forest Products | 3.3 | |||
Homefurnishing Retail | 3.1 | |||
Hypermarkets & Super Centers | 3.0 | |||
Distributors | 2.9 | |||
Internet Software & Services | 1.9 | |||
Money Market Fund Plus Other Assets Less Liabilities | 0.0 | |||
Top Ten Fund Holdings* | ||||
Security | ||||
Home Depot, Inc. (The) | 5.2 | |||
CVS Health Corp. | 5.1 | |||
Ross Stores, Inc. | 5.0 | |||
O’Reilly Automotive, Inc. | 4.9 | |||
Walgreens Boots Alliance, Inc. | 4.9 | |||
AutoZone, Inc. | 4.8 | |||
L Brands, Inc. | 4.6 | |||
Kroger Co. (The) | 4.4 | |||
Ollie’s Bargain Outlet Holdings, Inc. | 3.5 | |||
Ulta Salon, Cosmetics & Fragrance, Inc. | 3.4 | |||
Total | 45.8 |
* | Excluding money market fund holdings. |
| 30 |
|
PowerShares Dynamic Retail Portfolio (PMR) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2016
1 Year | 3 Years Average | 3 Years Cumulative | 5 Years Average | 5 Years Cumulative | 10 Years Average Annualized | 10 Years Cumulative | Fund Inception† | |||||||||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||||||||||
Dynamic Retail IntellidexSM Index | (5.83 | )% | 8.72 | % | 28.50 | % | 12.47 | % | 79.93 | % | 8.64 | % | 128.98 | % | 10.20 | % | 177.66 | % | ||||||||||||||||||||
S&P Composite 1500 Retailing Index | 13.35 | 19.26 | 69.61 | 19.17 | 140.33 | 11.58 | 199.26 | 12.23 | 236.22 | |||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||
NAV Return | (6.40 | ) | 7.92 | 25.70 | 11.63 | 73.35 | 7.91 | 114.16 | 9.48 | 159.10 | ||||||||||||||||||||||||||||
Market Price Return | (6.42 | ) | 7.93 | 25.74 | 11.61 | 73.19 | 7.92 | 114.28 | 9.47 | 158.92 |
Fund Inception: October 26, 2005
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.91% and the net annual operating expense ratio was indicated as 0.63%. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund
at NAV and Market 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 and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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.
† | Fund, Index and Benchmark Index returns are based on the inception date of the Fund. |
| 31 |
|
PSI | Manager’s Analysis | |
PowerShares Dynamic Semiconductors Portfolio (PSI) |
As an index fund, the PowerShares Dynamic Semiconductors Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dynamic Semiconductor IntellidexSM Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of semiconductor companies that comprise the Index. These companies are engaged principally in the manufacture of semiconductors.
NYSE Group, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its guidelines and mandated procedures, the Index Provider includes 30 semiconductor stocks from a universe of the 2,000 largest U.S. stocks (by market capitalization) traded on the NYSE, NYSE MKT and the NASDAQ, after having ranked companies based on their capital appreciation potential using a proprietary NYSE Group IntellidexSM model. The Index Provider splits stocks in the Semiconductor Group Universe into quintiles based on market capitalization. Larger stocks are defined by inclusion in the top quintile and smaller stocks are the bottom four quintiles. The 8 top-ranked relatively larger stocks collectively receive 40% of the Index weighting (each stock receives on average a 5% weighting) and the 22 top-ranked relatively smaller stocks collectively receive 60% of the Index weighting (each stock receives on average a 2.73% weighting). The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned (6.80)%. On a net asset value (“NAV”) basis, the Fund returned (6.69)%. During the same time period, the Index returned (6.01)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.
During this same time period, the S&P Composite 1500 Semiconductor Index (the “Benchmark Index”) returned (1.85)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 50 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a similar semiconductors sub-industry benchmark.
The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a general representation of the semiconductors sub-industry.
The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a modified equal weighting and stock selection methodology, whereas the
Benchmark Index selects and weights stocks based on market capitalization.
Relative to the Benchmark Index, the Fund was most overweight in the semiconductor equipment sub-industry and most underweight in the semiconductors sub-industry during the fiscal year ended April 30, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to stock selection within the semiconductors sub-industry.
For the fiscal year ended April 30, 2016, the semiconductor equipment sub-industry contributed most significantly to the Fund’s return, followed by the communications equipment sub-industry (no longer held at fiscal year-end). The semiconductors sub-industry detracted most significantly from the Fund’s return, followed by the electronic components sub-industry (no longer held at fiscal year-end).
Positions that contributed most significantly to the Fund’s return included NVIDIA Corp., a semiconductors company (portfolio average weight of 3.93%), and Cirrus Logic, Inc., a semiconductors company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included Micron Technology, Inc., a semiconductors company (no longer held at fiscal year-end), and Skyworks Solutions, Inc., a semiconductors company (portfolio average weight of 4.41%).
Sub-Industry Breakdown | ||||
Semiconductors | 67.7 | |||
Semiconductor Equipment | 32.3 | |||
Money Market Fund Plus Other Assets Less Liabilities | (0.0) | |||
Top Ten Fund Holdings* | ||||
Security | ||||
NVIDIA Corp. | 5.4 | |||
Broadcom Ltd. | 5.2 | |||
Applied Materials, Inc. | 5.2 | |||
Texas Instruments, Inc. | 5.1 | |||
Analog Devices, Inc. | 5.1 | |||
Skyworks Solutions, Inc. | 4.9 | |||
Intel Corp. | 4.9 | |||
QUALCOMM, Inc. | 4.7 | |||
Inphi Corp. | 3.1 | |||
Silicon Laboratories, Inc. | 3.0 | |||
Total | 46.6 |
* | Excluding money market fund holdings. |
| 32 |
|
PowerShares Dynamic Semiconductors Portfolio (PSI) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2016
1 Year | 3 Years | 3 Years | 5 Years | 5 Years | 10 Years Average Annualized | 10 Years Cumulative | Fund Inception† | |||||||||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||||||||||
Dynamic Semiconductor IntellidexSM Index | (6.01 | )% | 19.22 | % | 69.47 | % | 7.77 | % | 45.39 | % | 3.23 | % | 37.42 | % | 5.92 | % | 86.71 | % | ||||||||||||||||||||
S&P Composite 1500 Semiconductor Index | (1.85 | ) | 15.57 | 54.36 | 8.46 | 50.10 | 5.58 | 72.18 | 5.39 | 76.77 | ||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||
NAV Return | (6.69 | ) | 18.24 | 65.31 | 6.93 | 39.83 | 2.46 | 27.53 | 5.15 | 72.37 | ||||||||||||||||||||||||||||
Market Price Return | (6.80 | ) | 18.29 | 65.50 | 6.91 | 39.64 | 2.45 | 27.42 | 5.13 | 72.12 |
Fund Inception: June 23, 2005
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.78% and the net annual operating expense ratio was indicated as 0.63%. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund
at NAV and Market 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 and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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.
† | Fund, Index and Benchmark Index returns are based on the inception date of the Fund. |
| 33 |
|
PSJ | Manager’s Analysis | |
PowerShares Dynamic Software Portfolio (PSJ) |
As an index fund, the PowerShares Dynamic Software Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. 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 of software companies that comprise the Index. These companies are engaged principally in the research, design, production or distribution of products or processes that relate to software applications and systems and information-based services.
NYSE Group, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its guidelines and mandated procedures, the Index Provider includes 30 software stocks from a universe of the 2,000 largest U.S. stocks (by market capitalization) traded on the NYSE, NYSE MKT and the NASDAQ, after having ranked the stocks based on their capital appreciation potential using a proprietary NYSE Group IntellidexSM model. The Index Provider splits stocks in the Software Group Universe into quintiles based on market capitalization. Larger stocks are defined by inclusion in the top quintile and smaller stocks are the bottom four quintiles. The 8 top-ranked relatively larger stocks collectively receive 40% of the Index weighting (each stock receives on average a 5% weighting) and the 22 top-ranked relatively smaller stocks collectively receive 60% of the Index weighting (each stock receives on average a 2.73% weighting). The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned (0.50)%. On a net asset value (“NAV”) basis, the Fund returned (0.50)%. During the same time period, the Index returned 0.24%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.
During this same time period, the S&P Composite 1500 Software & Services Index (the “Benchmark Index”) returned 11.15%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 100 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a similar software industry benchmark.
The Benchmark Index was selected for its recognition in the marketplace, and its performance comparison is a useful measure for investors as a broad representation of the software industry.
The performance of the Fund differed from the Benchmark Index in part because the Fund tracks an Index that employs a modified
equal weighting and stock selection methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization.
Relative to the Benchmark Index, the Fund was most overweight in the application software sub-industry and underweight in the internet software & services sub-industry during the fiscal year ended April 30, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during that period can be attributed to the Fund’s allocation to and stock selection within the internet software & services sub-industry.
For the fiscal year ended April 30, 2016, the application software sub-industry contributed most significantly to the Fund’s return, followed by the data processing & outsourced services and home entertainment software sub-industries, respectively. The systems software sub-industry detracted most significantly from the Fund’s return, followed by the health care technology and internet software & services sub-industries, respectively.
Positions that contributed most significantly to the Fund’s return included Ellie Mae, Inc., an application software company (portfolio average weight of 2.86%), and Ebix, Inc., an application software company (portfolio average weight of 1.22%). Positions that detracted most significantly from the Fund’s return included VASCO Data Security International, Inc., a systems software company (no longer held at fiscal year-end), and Tyler Technologies, Inc., an application software company (no longer held at fiscal year-end).
| 34 |
|
PowerShares Dynamic Software Portfolio (PSJ) (continued)
Sub-Industry Breakdown | ||||
Application Software | 54.7 | |||
Data Processing & Outsourced Services | 13.9 | |||
Home Entertainment Software | 12.0 | |||
Health Care Technology | 7.5 | |||
IT Consulting & Other Services | 4.6 | |||
Systems Software | 4.6 | |||
Internet Software & Services | 2.7 | |||
Money Market Fund Plus Other Assets Less Liabilities | (0.0) | |||
Top Ten Fund Holdings* | ||||
Security | ||||
Citrix Systems, Inc. | 5.4 | |||
Adobe Systems, Inc. | 5.1 | |||
salesforce.com, inc. | 5.1 | |||
Activision Blizzard, Inc. | 5.1 | |||
Intuit, Inc. | 4.9 | |||
Amdocs Ltd. | 4.6 | |||
Microsoft Corp. | 4.6 | |||
Electronic Arts, Inc. | 4.5 | |||
Ebix, Inc. | 3.6 | |||
Paylocity Holding Corp. | 3.2 | |||
Total | 46.1 |
* | Excluding money market fund holdings. |
| 35 |
|
PowerShares Dynamic Software Portfolio (PSJ) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2016
1 Year | 3 Years | 3 Years | 5 Years | 5 Years | 10 Years Average Annualized | 10 Years Cumulative | Fund Inception† | |||||||||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||||||||||
Dynamic Software IntellidexSM Index | 0.24 | % | 12.73 | % | 43.27 | % | 9.76 | % | 59.33 | % | 9.34 | % | 144.30 | % | 10.73 | % | 202.28 | % | ||||||||||||||||||||
S&P Composite 1500 Software & Services Index | 11.15 | 15.58 | 54.41 | 14.39 | 95.89 | 10.20 | 164.02 | 10.00 | 181.26 | |||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||
NAV Return | (0.50 | ) | 11.94 | 40.25 | 9.02 | 53.99 | 8.66 | 129.39 | 10.04 | 182.38 | ||||||||||||||||||||||||||||
Market Price Return | (0.50 | ) | 12.00 | 40.47 | 9.02 | 53.97 | 8.65 | 129.20 | 10.03 | 182.26 |
Fund Inception: June 23, 2005
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.71% and the net annual operating expense ratio was 0.63%. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and
Market 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 and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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.
† | Fund, Index and Benchmark Index returns are based on the inception date of the Fund. |
| 36 |
|
PowerShares Dynamic Biotechnology & Genome Portfolio (PBE)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks—100.0% | ||||||||
Biotechnology—95.1% | ||||||||
931,454 | Achillion Pharmaceuticals, Inc.(b) | $ | 7,963,932 | |||||
207,385 | Acorda Therapeutics, Inc.(b) | 5,360,902 | ||||||
89,549 | Alexion Pharmaceuticals, Inc.(b) | 12,472,385 | ||||||
118,038 | Alnylam Pharmaceuticals, Inc.(b) | 7,913,268 | ||||||
85,036 | Amgen, Inc. | 13,461,199 | ||||||
1,098,906 | Amicus Therapeutics, Inc.(b)(c) | 8,208,828 | ||||||
47,455 | Biogen, Inc.(b) | 13,049,650 | ||||||
156,618 | BioMarin Pharmaceutical, Inc.(b) | 13,262,412 | ||||||
190,489 | Emergent BioSolutions, Inc.(b) | 7,337,636 | ||||||
1,778,230 | Exelixis, Inc.(b)(c) | 8,197,640 | ||||||
142,467 | Gilead Sciences, Inc. | 12,567,014 | ||||||
829,841 | Halozyme Therapeutics, Inc.(b) | 8,754,823 | ||||||
949,541 | ImmunoGen, Inc.(b)(c) | 6,504,356 | ||||||
168,836 | Incyte Corp.(b) | 12,201,778 | ||||||
565,801 | Insmed, Inc.(b) | 6,874,482 | ||||||
380,556 | Insys Therapeutics, Inc.(b)(c) | 5,514,256 | ||||||
204,364 | Ionis Pharmaceuticals, Inc.(b) | 8,372,793 | ||||||
754,817 | Lexicon Pharmaceuticals, Inc.(b)(c) | 10,424,023 | ||||||
192,471 | Medivation, Inc.(b) | 11,124,824 | ||||||
193,014 | Myriad Genetics, Inc.(b) | 6,948,504 | ||||||
180,069 | Neurocrine Biosciences, Inc.(b) | 8,207,545 | ||||||
735,359 | OPKO Health, Inc.(b)(c) | 7,905,109 | ||||||
31,837 | Regeneron Pharmaceuticals, Inc.(b) | 11,993,316 | ||||||
262,810 | Repligen Corp.(b) | 7,001,258 | ||||||
220,774 | Seattle Genetics, Inc.(b) | 7,833,062 | ||||||
55,301 | United Therapeutics Corp.(b) | 5,817,665 | ||||||
144,269 | Vertex Pharmaceuticals, Inc.(b) | 12,167,647 | ||||||
873,239 | ZIOPHARM Oncology, Inc.(b)(c) | 6,863,659 | ||||||
|
| |||||||
254,303,966 | ||||||||
|
| |||||||
Pharmaceuticals—4.9% | ||||||||
304,514 | Dyax Corp.(b) | 338,011 | ||||||
589,173 | Innoviva, Inc.(c) | 7,270,395 | ||||||
518,258 | Sucampo Pharmaceuticals, Inc., Class A(b) | 5,586,821 | ||||||
|
| |||||||
13,195,227 | ||||||||
|
| |||||||
Total Common Stocks (Cost $288,172,889) | 267,499,193 | |||||||
|
| |||||||
Money Market Fund—0.0% | ||||||||
86,499 | Invesco Premier Portfolio—Institutional Class, 0.39%(d) (Cost $86,499) | 86,499 | ||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $288,259,388)—100.0% | 267,585,692 | |||||||
|
| |||||||
Number of Shares | Value | |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—13.1% | ||||||||
35,158,423 | Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(d)(e) (Cost $35,158,423) | $ | 35,158,423 | |||||
|
| |||||||
Total Investments (Cost $323,417,811)—113.1% | 302,744,115 | |||||||
Other assets less liabilities—(13.1)% | (35,159,983 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 267,584,132 | ||||||
|
|
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | Non-income producing security. |
(c) | All or a portion of this security was out on loan at April 30, 2016. |
(d) | The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
(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. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 37 |
|
Schedule of Investments(a)
PowerShares Dynamic Building & Construction Portfolio (PKB)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks—100.0% | ||||||||
Building Products—23.6% | ||||||||
37,232 | A.O. Smith Corp. | $ | 2,875,055 | |||||
21,665 | American Woodmark Corp.(b) | 1,578,078 | ||||||
37,129 | Apogee Enterprises, Inc. | 1,538,626 | ||||||
185,220 | Builders FirstSource, Inc.(b) | 2,054,090 | ||||||
58,647 | Gibraltar Industries, Inc.(b) | 1,551,213 | ||||||
34,005 | Owens Corning | 1,566,610 | ||||||
42,885 | Simpson Manufacturing Co., Inc. | 1,612,476 | ||||||
18,924 | Universal Forest Products, Inc. | 1,450,525 | ||||||
|
| |||||||
14,226,673 | ||||||||
|
| |||||||
Construction & Engineering—24.9% | ||||||||
52,427 | AECOM(b) | 1,703,353 | ||||||
79,827 | Aegion Corp.(b) | 1,694,727 | ||||||
51,055 | Comfort Systems USA, Inc. | 1,505,612 | ||||||
32,401 | EMCOR Group, Inc. | 1,570,801 | ||||||
57,308 | Fluor Corp. | 3,132,455 | ||||||
103,336 | KBR, Inc. | 1,607,908 | ||||||
90,156 | MasTec, Inc.(b) | 2,042,935 | ||||||
72,402 | Quanta Services, Inc.(b) | 1,717,376 | ||||||
|
| |||||||
14,975,167 | ||||||||
|
| |||||||
Construction Materials—18.5% | ||||||||
83,997 | Headwaters, Inc.(b) | 1,680,780 | ||||||
18,865 | Martin Marietta Materials, Inc. | 3,192,524 | ||||||
81,156 | Summit Materials, Inc., Class A(b) | 1,696,160 | ||||||
26,977 | US Concrete, Inc.(b) | 1,666,100 | ||||||
27,171 | Vulcan Materials Co. | 2,924,415 | ||||||
|
| |||||||
11,159,979 | ||||||||
|
| |||||||
Distributors—2.6% | ||||||||
17,881 | Pool Corp. | 1,562,978 | ||||||
|
| |||||||
Environmental & Facilities Services—2.6% | ||||||||
53,112 | Tetra Tech, Inc. | 1,561,493 | ||||||
|
| |||||||
Forest Products—3.0% | ||||||||
85,972 | Boise Cascade Co.(b) | 1,794,236 | ||||||
|
| |||||||
Heavy Electrical Equipment—3.0% | ||||||||
77,998 | Babcock & Wilcox Enterprises, Inc.(b) | 1,782,254 | ||||||
|
| |||||||
Home Improvement Retail—9.6% | ||||||||
21,247 | Home Depot, Inc. (The) | 2,844,761 | ||||||
38,822 | Lowe’s Cos., Inc. | 2,951,248 | ||||||
|
| |||||||
5,796,009 | ||||||||
|
| |||||||
Homebuilding—9.5% | ||||||||
98,734 | D.R. Horton, Inc. | 2,967,944 | ||||||
1,649 | NVR, Inc.(b) | 2,739,467 | ||||||
|
| |||||||
5,707,411 | ||||||||
|
| |||||||
Multi-Utilities—2.7% | ||||||||
80,442 | MDU Resources Group, Inc. | 1,613,666 | ||||||
|
| |||||||
Total Common Stocks (Cost $52,499,413) | 60,179,866 | |||||||
|
| |||||||
Number of Shares | Value | |||||||
Money Market Fund—0.1% | ||||||||
76,494 | Invesco Premier Portfolio—Institutional Class, 0.39%(c) (Cost $76,494) | $ | 76,494 | |||||
|
| |||||||
Total Investments (Cost $52,575,907)—100.1% | 60,256,360 | |||||||
Other assets less liabilities—(0.1)% | (55,278 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 60,201,082 | ||||||
|
|
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 38 |
|
Schedule of Investments(a)
PowerShares Dynamic Energy Exploration & Production Portfolio (PXE)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.0% | ||||||||
Integrated Oil & Gas—4.1% | ||||||||
39,369 | Occidental Petroleum Corp. | $ | 3,017,634 | |||||
|
| |||||||
Oil & Gas Exploration & Production—64.8% | ||||||||
62,120 | Antero Resources Corp.(b) | 1,757,996 | ||||||
122,064 | Black Stone Minerals LP | 2,043,351 | ||||||
80,541 | ConocoPhillips | 3,849,054 | ||||||
66,500 | Continental Resources, Inc.(b) | 2,477,790 | ||||||
20,646 | Diamondback Energy, Inc.(b) | 1,787,531 | ||||||
55,993 | Energen Corp. | 2,379,143 | ||||||
40,712 | EOG Resources, Inc. | 3,363,625 | ||||||
63,803 | Hess Corp. | 3,803,935 | ||||||
328,713 | Kosmos Energy Ltd.(b) | 2,130,060 | ||||||
283,352 | Oasis Petroleum, Inc.(b) | 2,745,681 | ||||||
29,794 | PDC Energy, Inc.(b) | 1,870,765 | ||||||
22,275 | Pioneer Natural Resources Co. | 3,699,878 | ||||||
170,526 | SM Energy Co. | 5,313,590 | ||||||
234,941 | Southwestern Energy Co.(b) | 3,155,258 | ||||||
386,323 | Whiting Petroleum Corp.(b) | 4,635,876 | ||||||
351,862 | WPX Energy, Inc.(b) | 3,398,987 | ||||||
|
| |||||||
48,412,520 | ||||||||
|
| |||||||
Oil & Gas Refining & Marketing—31.1% | ||||||||
149,743 | Alon USA Energy, Inc. | 1,572,302 | ||||||
146,667 | Alon USA Partners LP(c) | 1,466,670 | ||||||
156,956 | Calumet Specialty Products Partners LP | 721,998 | ||||||
67,187 | CVR Energy, Inc. | 1,631,300 | ||||||
142,212 | CVR Refining LP | 1,666,725 | ||||||
45,573 | HollyFrontier Corp. | 1,622,399 | ||||||
80,305 | Marathon Petroleum Corp. | 3,138,319 | ||||||
63,459 | Par Pacific Holdings, Inc.(b) | 1,212,701 | ||||||
51,722 | PBF Energy, Inc., Class A | 1,664,414 | ||||||
34,742 | Phillips 66 | 2,852,666 | ||||||
18,654 | Tesoro Corp. | 1,486,537 | ||||||
46,061 | Valero Energy Corp. | 2,711,611 | ||||||
56,287 | Western Refining, Inc. | 1,506,240 | ||||||
|
| |||||||
23,253,882 | ||||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $68,190,200) | 74,684,036 | |||||||
|
| |||||||
Money Market Fund—0.1% | ||||||||
41,644 | Invesco Premier Portfolio—Institutional Class, 0.39%(d) (Cost $41,644) | 41,644 | ||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $68,231,844)—100.1% | 74,725,680 | |||||||
|
| |||||||
Number of Shares | Value | |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—0.1% | ||||||||
137,250 | Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(d)(e) (Cost $137,250) | $ | 137,250 | |||||
|
| |||||||
Total Investments (Cost $68,369,094)—100.2% | 74,862,930 | |||||||
Other assets less liabilities—(0.2)% | (181,200 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 74,681,730 | ||||||
|
|
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | Non-income producing security. |
(c) | All or a portion of this security was out on loan at April 30, 2016. |
(d) | The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
(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. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 39 |
|
Schedule of Investments(a)
PowerShares Dynamic Food & Beverage Portfolio (PBJ)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks—100.0% | ||||||||
Agricultural Products—8.9% | ||||||||
229,400 | Archer-Daniels-Midland Co. | $ | 9,162,236 | |||||
199,520 | Fresh Del Monte Produce, Inc. | 8,631,235 | ||||||
78,290 | Ingredion, Inc. | 9,010,396 | ||||||
|
| |||||||
26,803,867 | ||||||||
|
| |||||||
Distillers & Vintners—5.3% | ||||||||
103,002 | Constellation Brands, Inc., Class A | 16,074,492 | ||||||
|
| |||||||
Food Distributors—5.2% | ||||||||
338,222 | Sysco Corp. | 15,581,888 | ||||||
|
| |||||||
Food Retail—10.0% | ||||||||
370,887 | Kroger Co. (The) | 13,125,691 | ||||||
1,618,827 | SUPERVALU, Inc.(b) | 8,142,700 | ||||||
193,992 | Weis Markets, Inc. | 8,830,516 | ||||||
|
| |||||||
30,098,907 | ||||||||
|
| |||||||
Packaged Foods & Meats—46.6% | ||||||||
220,282 | B&G Foods, Inc. | 9,077,821 | ||||||
152,189 | Cal-Maine Foods, Inc. | 7,725,114 | ||||||
128,765 | Campbell Soup Co. | 7,946,088 | ||||||
189,658 | ConAgra Foods, Inc. | 8,451,160 | ||||||
413,728 | Dean Foods Co. | 7,128,533 | ||||||
340,504 | Hormel Foods Corp. | 13,126,429 | ||||||
62,512 | JM Smucker Co. (The) | 7,937,774 | ||||||
119,259 | John B. Sanfilippo & Son, Inc. | 6,598,600 | ||||||
78,815 | Lancaster Colony Corp. | 9,181,948 | ||||||
85,330 | McCormick & Co., Inc. | 8,002,247 | ||||||
359,584 | Mondelez International, Inc., Class A | 15,447,729 | ||||||
113,832 | Post Holdings, Inc., Class A(b) | 8,177,691 | ||||||
2,812 | Seaboard Corp.(b) | 8,444,436 | ||||||
246,778 | Snyder’s-Lance, Inc. | 7,889,493 | ||||||
224,512 | Tyson Foods, Inc., Class A | 14,777,380 | ||||||
|
| |||||||
139,912,443 | ||||||||
|
| |||||||
Restaurants—15.7% | ||||||||
59,385 | Domino’s Pizza, Inc. | 7,178,459 | ||||||
124,991 | McDonald’s Corp. | 15,810,111 | ||||||
289,475 | Sonic Corp. | 9,949,256 | ||||||
250,797 | Starbucks Corp. | 14,102,315 | ||||||
|
| |||||||
47,040,141 | ||||||||
|
| |||||||
Soft Drinks—8.3% | ||||||||
45,967 | Coca-Cola Bottling Co. Consolidated | 7,325,761 | ||||||
86,579 | Dr Pepper Snapple Group, Inc. | 7,870,897 | ||||||
208,976 | National Beverage Corp.(b) | 9,767,538 | ||||||
|
| |||||||
24,964,196 | ||||||||
|
| |||||||
Total Common Stocks (Cost $287,507,104) | 300,475,934 | |||||||
|
| |||||||
Money Market Fund—0.1% | ||||||||
150,639 | Invesco Premier Portfolio—Institutional Class, 0.39%(c) (Cost $150,639) | 150,639 | ||||||
|
| |||||||
Total Investments (Cost $287,657,743)—100.1% | 300,626,573 | |||||||
Other assets less liabilities—(0.1)% | (171,478 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 300,455,095 | ||||||
|
|
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 40 |
|
Schedule of Investments(a)
PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.1% | ||||||||
Airlines—35.9% | ||||||||
50,817 | Alaska Air Group, Inc. | $ | 3,579,041 | |||||
23,239 | Allegiant Travel Co. | 3,731,486 | ||||||
169,965 | American Airlines Group, Inc. | 5,896,086 | ||||||
145,155 | Delta Air Lines, Inc. | 6,048,609 | ||||||
88,860 | Hawaiian Holdings, Inc.(b) | 3,738,340 | ||||||
169,916 | JetBlue Airways Corp.(b) | 3,362,638 | ||||||
214,562 | SkyWest, Inc. | 5,042,207 | ||||||
164,736 | Southwest Airlines Co. | 7,348,873 | ||||||
122,772 | United Continental Holdings, Inc.(b) | 5,624,185 | ||||||
122,544 | Virgin America, Inc.(b) | 6,824,476 | ||||||
|
| |||||||
51,195,941 | ||||||||
|
| |||||||
Cable & Satellite—3.0% | ||||||||
158,873 | Starz, Class A(b) | 4,322,934 | ||||||
|
| |||||||
Casinos & Gaming—5.4% | ||||||||
214,806 | Boyd Gaming Corp.(b) | 4,003,984 | ||||||
27,747 | Churchill Downs, Inc. | 3,723,092 | ||||||
|
| |||||||
7,727,076 | ||||||||
|
| |||||||
Hotels, Resorts & Cruise Lines—5.0% | ||||||||
143,714 | Carnival Corp. | 7,049,172 | ||||||
|
| |||||||
Internet Retail—5.2% | ||||||||
5,544 | Priceline Group, Inc. (The)(b) | 7,449,251 | ||||||
|
| |||||||
Leisure Facilities—8.5% | ||||||||
66,164 | Cedar Fair LP | 3,842,144 | ||||||
73,431 | Six Flags Entertainment Corp. | 4,409,532 | ||||||
29,885 | Vail Resorts, Inc. | 3,874,291 | ||||||
|
| |||||||
12,125,967 | ||||||||
|
| |||||||
Restaurants—37.1% | ||||||||
83,706 | BJ’s Restaurants, Inc.(b) | 3,733,288 | ||||||
59,449 | Darden Restaurants, Inc. | 3,700,700 | ||||||
103,079 | Dave & Buster’s Entertainment, Inc.(b) | 3,989,157 | ||||||
365,045 | Denny’s Corp.(b) | 3,610,295 | ||||||
28,200 | Domino’s Pizza, Inc. | 3,408,816 | ||||||
59,340 | McDonald’s Corp. | 7,505,917 | ||||||
18,393 | Panera Bread Co., Class A(b) | 3,945,115 | ||||||
225,679 | Ruth’s Hospitality Group, Inc. | 3,583,782 | ||||||
137,437 | Sonic Corp. | 4,723,710 | ||||||
119,079 | Starbucks Corp. | 6,695,812 | ||||||
89,945 | Texas Roadhouse, Inc. | 3,662,560 | ||||||
403,959 | Wendy’s Co. (The) | 4,386,995 | ||||||
|
| |||||||
52,946,147 | ||||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $141,640,189) | 142,816,488 | |||||||
|
| |||||||
Number of Shares | Value | |||||||
Money Market Fund—0.0% | ||||||||
36,615 | Invesco Premier Portfolio—Institutional Class, 0.39%(c) (Cost $36,615) | $ | 36,615 | |||||
|
| |||||||
Total Investments (Cost $141,676,804)—100.1% | 142,853,103 | |||||||
Other assets less liabilities—(0.1)% | (98,813 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 142,754,290 | ||||||
|
|
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 41 |
|
Schedule of Investments(a)
PowerShares Dynamic Media Portfolio (PBS)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks—100.1% | ||||||||
Advertising—9.9% | ||||||||
105,282 | Interpublic Group of Cos., Inc. (The) | $ | 2,415,169 | |||||
151,436 | National CineMedia, Inc. | 2,150,391 | ||||||
53,122 | Omnicom Group, Inc. | 4,407,533 | ||||||
|
| |||||||
8,973,093 | ||||||||
|
| |||||||
Broadcasting—18.7% | ||||||||
85,357 | CBS Corp., Class B | 4,772,310 | ||||||
89,666 | Discovery Communications, Inc., Class A(b) | 2,448,778 | ||||||
294,732 | Entravision Communications Corp., Class A | 2,343,119 | ||||||
51,367 | Nexstar Broadcasting Group, Inc., Class A | 2,636,668 | ||||||
37,851 | Scripps Networks Interactive, Inc., Class A | 2,360,010 | ||||||
74,365 | Sinclair Broadcast Group, Inc., Class A | 2,384,886 | ||||||
|
| |||||||
16,945,771 | ||||||||
|
| |||||||
Cable & Satellite—12.7% | ||||||||
34,036 | AMC Networks, Inc., Class A(b) | 2,220,168 | ||||||
69,172 | Cablevision Systems Corp., Class A | 2,309,653 | ||||||
1,117,292 | Sirius XM Holdings, Inc.(b) | 4,413,303 | ||||||
94,288 | Starz, Class A(b) | 2,565,577 | ||||||
|
| |||||||
11,508,701 | ||||||||
|
| |||||||
Catalog Retail—2.5% | ||||||||
87,503 | Liberty Interactive Corp. QVC Group, Series A(b) | 2,292,579 | ||||||
|
| |||||||
Data Processing & Outsourced Services—2.4% | ||||||||
10,573 | Alliance Data Systems Corp.(b) | 2,149,597 | ||||||
|
| |||||||
Diversified Support Services—2.7% | ||||||||
80,400 | Viad Corp. | 2,391,900 | ||||||
|
| |||||||
Internet Software & Services—15.3% | ||||||||
5,688 | Alphabet, Inc., Class A(b) | 4,026,421 | ||||||
303,891 | Bankrate, Inc.(b) | 2,777,564 | ||||||
38,201 | Facebook, Inc., Class A(b) | 4,491,674 | ||||||
39,994 | WebMD Health Corp.(b) | 2,509,223 | ||||||
|
| |||||||
13,804,882 | ||||||||
|
| |||||||
IT Consulting & Other Services—2.6% | ||||||||
108,220 | Acxiom Corp.(b) | 2,377,593 | ||||||
|
| |||||||
Movies & Entertainment—22.0% | ||||||||
90,315 | DreamWorks Animation SKG, Inc., Class A(b) | 3,605,375 | ||||||
61,848 | Time Warner, Inc. | 4,647,259 | ||||||
152,244 | Twenty-First Century Fox, Inc., Class A | 4,606,903 | ||||||
62,071 | Viacom, Inc., Class B | 2,538,704 | ||||||
43,256 | Walt Disney Co. (The) | 4,466,615 | ||||||
|
| |||||||
19,864,856 | ||||||||
|
| |||||||
Publishing—8.4% | ||||||||
154,452 | Gannett Co., Inc. | 2,602,516 | ||||||
52,164 | Meredith Corp. | 2,676,535 | ||||||
179,187 | New York Times Co. (The), Class A | 2,297,177 | ||||||
|
| |||||||
7,576,228 | ||||||||
|
| |||||||
Research & Consulting Services—2.9% | ||||||||
21,506 | IHS, Inc., Class A(b) | 2,649,109 | ||||||
|
| |||||||
Total Common Stocks (Cost $87,807,439) | 90,534,309 | |||||||
|
| |||||||
Number of Shares | Value | |||||||
Money Market Fund—0.0% | ||||||||
20,520 | Invesco Premier Portfolio—Institutional Class, 0.39%(c) (Cost $20,520) | $ | 20,520 | |||||
|
| |||||||
Total Investments (Cost $87,827,959)—100.1% | 90,554,829 | |||||||
Other assets less liabilities—(0.1)% | (93,855 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 90,460,974 | ||||||
|
|
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 42 |
|
Schedule of Investments(a)
PowerShares Dynamic Networking Portfolio (PXQ)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks—100.0% | ||||||||
Application Software—5.4% | ||||||||
13,352 | Citrix Systems, Inc.(b) | $ | 1,092,728 | |||||
|
| |||||||
Communications Equipment—64.7% | ||||||||
27,730 | ADTRAN, Inc. | 535,744 | ||||||
7,549 | Arista Networks, Inc.(b) | 502,914 | ||||||
22,013 | ARRIS International PLC(b) | 501,236 | ||||||
52,472 | Brocade Communications Systems, Inc. | 504,256 | ||||||
29,421 | CalAmp Corp.(b) | 440,432 | ||||||
25,110 | Ciena Corp.(b) | 422,601 | ||||||
36,170 | Cisco Systems, Inc. | 994,313 | ||||||
5,365 | F5 Networks, Inc.(b) | 561,984 | ||||||
36,059 | Finisar Corp.(b) | 593,531 | ||||||
38,831 | Juniper Networks, Inc. | 908,645 | ||||||
21,710 | Lumentum Holdings, Inc.(b) | 549,263 | ||||||
12,761 | Motorola Solutions, Inc. | 959,500 | ||||||
13,292 | NETGEAR, Inc.(b) | 563,581 | ||||||
106,120 | Oclaro, Inc.(b) | 535,906 | ||||||
6,473 | Palo Alto Networks, Inc.(b) | 976,581 | ||||||
13,788 | Plantronics, Inc. | 530,149 | ||||||
50,441 | Polycom, Inc.(b) | 602,770 | ||||||
53,717 | Ruckus Wireless, Inc.(b) | 738,072 | ||||||
15,789 | Ubiquiti Networks, Inc.(b) | 562,404 | ||||||
7,271 | ViaSat, Inc.(b) | 557,686 | ||||||
79,307 | Viavi Solutions, Inc.(b) | 516,289 | ||||||
|
| |||||||
13,057,857 | ||||||||
|
| |||||||
Electronic Components—5.0% | ||||||||
18,044 | Amphenol Corp., Class A | 1,007,396 | ||||||
|
| |||||||
Electronic Equipment & Instruments—3.9% | ||||||||
42,884 | Fitbit, Inc., Class A(b)(c) | 782,633 | ||||||
|
| |||||||
Electronic Manufacturing Services—2.6% | ||||||||
40,643 | QLogic Corp.(b) | 532,017 | ||||||
|
| |||||||
Systems Software—18.4% | ||||||||
32,514 | CA, Inc. | 964,365 | ||||||
11,553 | Check Point Software Technologies Ltd. (Israel)(b) | 957,397 | ||||||
18,536 | Fortinet, Inc.(b) | 602,606 | ||||||
19,248 | Gigamon, Inc.(b) | 627,292 | ||||||
33,486 | Infoblox, Inc.(b) | 560,221 | ||||||
|
| |||||||
3,711,881 | ||||||||
|
| |||||||
Total Common Stocks (Cost $18,933,055) | 20,184,512 | |||||||
|
| |||||||
Money Market Fund—0.3% | ||||||||
52,197 | Invesco Premier Portfolio—Institutional Class, 0.39%(d) (Cost $52,197) | 52,197 | ||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $18,985,252)—100.3% | 20,236,709 | |||||||
|
| |||||||
Number of Shares | Value | |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—3.7% | ||||||||
752,950 | Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(d)(e) (Cost $752,950) | $ | 752,950 | |||||
|
| |||||||
Total Investments (Cost $19,738,202)—104.0% | 20,989,659 | |||||||
Other assets less liabilities—(4.0)% | (800,340 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 20,189,319 | ||||||
|
|
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | Non-income producing security. |
(c) | All or a portion of this security was out on loan at April 30, 2016. |
(d) | The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
(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. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 43 |
|
Schedule of Investments(a)
PowerShares Dynamic Oil & Gas Services Portfolio (PXJ)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.0% |
| |||||||
Oil & Gas Drilling—32.9% | ||||||||
47,846 | Diamond Offshore Drilling, Inc. | $ | 1,160,744 | |||||
114,239 | Ensco PLC, Class A | 1,366,298 | ||||||
33,146 | Helmerich & Payne, Inc. | 2,191,613 | ||||||
131,610 | Nabors Industries Ltd. | 1,289,778 | ||||||
117,165 | Noble Corp. PLC (United Kingdom) | 1,315,763 | ||||||
62,712 | Patterson-UTI Energy, Inc. | 1,238,562 | ||||||
75,059 | Rowan Cos. PLC, Class A | 1,411,860 | ||||||
508,334 | Seadrill Ltd. (United Kingdom)(b) | 2,429,837 | ||||||
111,069 | Transocean Ltd.(c) | 1,230,645 | ||||||
115,614 | Transocean Partners LLC | 1,366,557 | ||||||
|
| |||||||
15,001,657 | ||||||||
|
| |||||||
Oil & Gas Equipment & Services—55.2% | ||||||||
39,805 | Baker Hughes, Inc. | 1,924,970 | ||||||
16,770 | Core Laboratories NV | 2,241,478 | ||||||
18,193 | Dril-Quip, Inc.(b) | 1,179,270 | ||||||
71,805 | FMC Technologies, Inc.(b) | 2,189,335 | ||||||
87,500 | Forum Energy Technologies, Inc.(b) | 1,464,750 | ||||||
73,961 | Frank’s International NV | 1,231,451 | ||||||
53,684 | Halliburton Co. | 2,217,686 | ||||||
302,123 | McDermott International, Inc.(b) | 1,371,638 | ||||||
61,138 | National Oilwell Varco, Inc. | 2,203,414 | ||||||
35,257 | Oceaneering International, Inc. | 1,292,169 | ||||||
38,538 | Oil States International, Inc.(b) | 1,334,956 | ||||||
71,912 | RPC, Inc. | 1,087,309 | ||||||
24,305 | Schlumberger Ltd. | 1,952,664 | ||||||
20,595 | SEACOR Holdings, Inc.(b) | 1,210,368 | ||||||
273,931 | Weatherford International PLC(b) | 2,227,059 | ||||||
|
| |||||||
25,128,517 | ||||||||
|
| |||||||
Oil & Gas Storage & Transportation—11.9% | ||||||||
167,087 | DHT Holdings, Inc. | 959,079 | ||||||
63,374 | Navigator Holdings Ltd. (United Kingdom)(b) | 965,820 | ||||||
168,258 | Scorpio Tankers, Inc. (Monaco) | 1,053,295 | ||||||
123,808 | Teekay Corp. (Bermuda) | 1,386,650 | ||||||
164,794 | Tsakos Energy Navigation Ltd. (Greece) | 1,048,090 | ||||||
|
| |||||||
5,412,934 | ||||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $51,708,766) | 45,543,108 | |||||||
|
| |||||||
Money Market Fund—0.1% | ||||||||
48,110 | Invesco Premier Portfolio—Institutional Class, 0.39%(d) (Cost $48,110) | 48,110 | ||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $51,756,876)—100.1% | 45,591,218 | |||||||
|
| |||||||
Number of Shares | Value | |||||||
Investments Purchased with Cash Collateral from Securities on Loan |
| |||||||
Money Market Fund—0.2% | ||||||||
82,800 | Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(d)(e) (Cost $82,800) | $ | 82,800 | |||||
|
| |||||||
Total Investments (Cost $51,839,676)—100.3% | 45,674,018 | |||||||
Other assets less liabilities—(0.3)% | (140,210 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 45,533,808 | ||||||
|
|
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | Non-income producing security. |
(c) | All or a portion of this security was out on loan at April 30, 2016. |
(d) | The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
(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. |
This Fund has holdings greater than 10% of net assets in the following country:
United Kingdom | 10.4 | % |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 44 |
|
Schedule of Investments(a)
PowerShares Dynamic Pharmaceuticals Portfolio (PJP)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks—100.0% | ||||||||
Biotechnology—31.9% | ||||||||
387,584 | Amgen, Inc. | $ | 61,354,547 | |||||
173,042 | Biogen, Inc.(b) | 47,584,820 | ||||||
442,742 | Celgene Corp.(b) | 45,783,950 | ||||||
649,356 | Gilead Sciences, Inc. | 57,279,693 | ||||||
2,443,483 | Heron Therapeutics, Inc.(b)(c)(d) | 52,388,275 | ||||||
470,470 | Ligand Pharmaceuticals, Inc.(b)(c) | 56,865,709 | ||||||
9,716,896 | Novavax, Inc.(b)(c) | 50,916,535 | ||||||
|
| |||||||
372,173,529 | ||||||||
|
| |||||||
Health Care Equipment—8.2% | ||||||||
1,158,059 | Abbott Laboratories | 45,048,495 | ||||||
1,160,704 | Baxter International, Inc. | 51,326,331 | ||||||
|
| |||||||
96,374,826 | ||||||||
|
| |||||||
Pharmaceuticals—59.9% | ||||||||
1,671,522 | Akorn, Inc.(b) | 42,540,235 | ||||||
191,940 | Allergan PLC(b) | 41,566,526 | ||||||
919,011 | Bristol-Myers Squibb Co. | 66,334,214 | ||||||
2,799,172 | Depomed, Inc.(b)(c) | 48,649,609 | ||||||
777,290 | Eli Lilly & Co. | 58,708,714 | ||||||
1,375,600 | Impax Laboratories, Inc.(b) | 45,876,260 | ||||||
540,833 | Johnson & Johnson | 60,616,563 | ||||||
1,812,528 | Lannett Co., Inc.(b)(c) | 34,764,287 | ||||||
1,416,932 | Medicines Co. (The)(b) | 50,428,610 | ||||||
1,129,693 | Merck & Co., Inc. | 61,952,364 | ||||||
970,869 | Mylan NV(b) | 40,494,946 | ||||||
354,145 | Perrigo Co. PLC | 34,235,197 | ||||||
1,892,435 | Pfizer, Inc. | 61,901,549 | ||||||
910,590 | Prestige Brands Holdings, Inc.(b) | 51,703,300 | ||||||
|
| |||||||
699,772,374 | ||||||||
|
| |||||||
Total Common Stocks (Cost $1,251,449,875) | 1,168,320,729 | |||||||
|
| |||||||
Money Market Fund—0.0% | ||||||||
204,498 | Invesco Premier Portfolio—Institutional Class, 0.39%(e) (Cost $204,498) | 204,498 | ||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $1,251,654,373)—100.0% | 1,168,525,227 | |||||||
|
| |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—8.7% | ||||||||
102,168,125 | Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(e)(f) (Cost $102,168,125) | 102,168,125 | ||||||
|
| |||||||
Total Investments (Cost $1,353,822,498)—108.7% | 1,270,693,352 | |||||||
Other assets less liabilities—(8.7)% | (102,167,644 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 1,168,525,708 | ||||||
|
|
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | Non-income producing security. |
(c) | All or a portion of this security was out on loan at April 30, 2016. |
(d) | Affiliated company. See Note 4. |
(e) | The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
(f) | 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 accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 45 |
|
Schedule of Investments(a)
PowerShares Dynamic Retail Portfolio (PMR)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks—100.0% | ||||||||
Apparel Retail—28.1% | ||||||||
20,148 | Abercrombie & Fitch Co., Class A | $ | 538,556 | |||||
37,877 | American Eagle Outfitters, Inc. | 542,020 | ||||||
15,743 | Cato Corp. (The), Class A | 576,036 | ||||||
8,353 | Children’s Place, Inc. (The) | 650,782 | ||||||
33,471 | Express, Inc.(b) | 608,503 | ||||||
8,946 | Foot Locker, Inc. | 549,642 | ||||||
30,604 | Francesca’s Holdings Corp.(b) | 508,027 | ||||||
12,479 | L Brands, Inc. | 976,981 | ||||||
18,706 | Ross Stores, Inc. | 1,062,127 | ||||||
|
| |||||||
6,012,674 | ||||||||
|
| |||||||
Automotive Retail—9.7% | ||||||||
1,347 | AutoZone, Inc.(b) | 1,030,765 | ||||||
4,005 | O’Reilly Automotive, Inc.(b) | 1,052,033 | ||||||
|
| |||||||
2,082,798 | ||||||||
|
| |||||||
Distributors—2.9% | ||||||||
7,013 | Pool Corp. | 613,006 | ||||||
|
| |||||||
Drug Retail—12.7% | ||||||||
10,782 | CVS Health Corp. | 1,083,591 | ||||||
72,089 | Rite Aid Corp.(b) | 580,317 | ||||||
13,233 | Walgreens Boots Alliance, Inc. | 1,049,112 | ||||||
|
| |||||||
2,713,020 | ||||||||
|
| |||||||
Food Retail—12.8% | ||||||||
26,692 | Kroger Co. (The) | 944,630 | ||||||
35,575 | Smart & Final Stores, Inc.(b) | 566,354 | ||||||
116,394 | SUPERVALU, Inc.(b) | 585,462 | ||||||
13,948 | Weis Markets, Inc. | 634,913 | ||||||
|
| |||||||
2,731,359 | ||||||||
|
| |||||||
Forest Products—3.3% | ||||||||
33,746 | Boise Cascade Co.(b) | 704,279 | ||||||
|
| |||||||
General Merchandise Stores—3.5% | ||||||||
28,433 | Ollie’s Bargain Outlet Holdings, Inc.(b) | 752,053 | ||||||
|
| |||||||
Home Improvement Retail—5.2% | ||||||||
8,340 | Home Depot, Inc. (The) | 1,116,643 | ||||||
|
| |||||||
Homefurnishing Retail—3.1% | ||||||||
25,369 | Aaron’s, Inc. | 664,921 | ||||||
|
| |||||||
Hypermarkets & Super Centers—3.0% | ||||||||
7,430 | PriceSmart, Inc. | 642,992 | ||||||
|
| |||||||
Internet Software & Services—1.9% | ||||||||
4,926 | Stamps.com, Inc.(b) | 405,705 | ||||||
|
| |||||||
Specialty Stores—8.4% | ||||||||
18,130 | Sally Beauty Holdings, Inc.(b) | 569,282 | ||||||
44,830 | Sportsman’s Warehouse Holdings, Inc.(b) | 510,165 | ||||||
3,486 | Ulta Salon, Cosmetics & Fragrance, Inc.(b) | 726,064 | ||||||
|
| |||||||
1,805,511 | ||||||||
|
| |||||||
Trucking—5.4% | ||||||||
1,646 | AMERCO | 579,392 | ||||||
23,213 | Avis Budget Group, Inc.(b) | 582,646 | ||||||
|
| |||||||
1,162,038 | ||||||||
|
| |||||||
Total Common Stocks (Cost $21,739,726) | 21,406,999 | |||||||
|
| |||||||
Number of Shares | Value | |||||||
Money Market Fund—0.2% | ||||||||
53,293 | Invesco Premier Portfolio—Institutional Class, 0.39%(c) (Cost $53,293) | $ | 53,293 | |||||
|
| |||||||
Total Investments (Cost $21,793,019)—100.2% | 21,460,292 | |||||||
Other assets less liabilities—(0.2)% | (43,834 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 21,416,458 | ||||||
|
|
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 46 |
|
Schedule of Investments(a)
PowerShares Dynamic Semiconductors Portfolio (PSI)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks—100.0% | ||||||||
Semiconductor Equipment—32.3% | ||||||||
42,841 | Advanced Energy Industries, Inc.(b) | $ | 1,385,906 | |||||
249,932 | Amkor Technology, Inc.(b) | 1,427,112 | ||||||
123,475 | Applied Materials, Inc. | 2,527,533 | ||||||
133,576 | Brooks Automation, Inc. | 1,263,629 | ||||||
18,826 | KLA-Tencor Corp. | 1,316,691 | ||||||
113,444 | Kulicke & Soffa Industries, Inc. (Singapore)(b) | 1,216,120 | ||||||
17,338 | Lam Research Corp. | 1,324,623 | ||||||
38,884 | MKS Instruments, Inc. | 1,394,380 | ||||||
124,966 | Photronics, Inc.(b) | 1,322,140 | ||||||
66,928 | Teradyne, Inc. | 1,265,609 | ||||||
63,887 | Ultratech, Inc.(b) | 1,385,709 | ||||||
|
| |||||||
15,829,452 | ||||||||
|
| |||||||
Semiconductors—67.7% | ||||||||
29,030 | Ambarella, Inc.(b) | 1,193,133 | ||||||
43,900 | Analog Devices, Inc. | 2,472,448 | ||||||
17,624 | Broadcom Ltd. (Singapore) | 2,568,698 | ||||||
50,800 | Inphi Corp.(b) | 1,507,236 | ||||||
66,475 | Integrated Device Technology, Inc.(b) | 1,281,638 | ||||||
78,726 | Intel Corp. | 2,383,823 | ||||||
98,968 | Intersil Corp., Class A | 1,156,936 | ||||||
29,162 | Linear Technology Corp. | 1,297,126 | ||||||
34,353 | M/A-Com Technology Solutions Holdings, Inc.(b) | 1,404,694 | ||||||
37,748 | Maxim Integrated Products, Inc. | 1,348,358 | ||||||
80,940 | MaxLinear, Inc., Class A(b) | 1,355,745 | ||||||
28,513 | Microchip Technology, Inc. | 1,385,447 | ||||||
21,785 | Monolithic Power Systems, Inc. | 1,359,820 | ||||||
74,054 | NVIDIA Corp. | 2,631,139 | ||||||
45,448 | QUALCOMM, Inc. | 2,296,033 | ||||||
31,596 | Silicon Laboratories, Inc.(b) | 1,478,693 | ||||||
36,148 | Skyworks Solutions, Inc. | 2,415,409 | ||||||
44,016 | Texas Instruments, Inc. | 2,510,673 | ||||||
26,445 | Xilinx, Inc. | 1,139,250 | ||||||
|
| |||||||
33,186,299 | ||||||||
|
| |||||||
Total Common Stocks (Cost $49,922,538) | 49,015,751 | |||||||
|
| |||||||
Money Market Fund—0.1% | ||||||||
37,408 | Invesco Premier Portfolio—Institutional Class, 0.39%(c) (Cost $37,408) | 37,408 | ||||||
|
| |||||||
Total Investments (Cost $49,959,946)—100.1% | 49,053,159 | |||||||
Other assets less liabilities—(0.1)% | (54,308 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 48,998,851 | ||||||
|
|
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 47 |
|
Schedule of Investments(a)
PowerShares Dynamic Software Portfolio (PSJ)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks—100.0% | ||||||||
Application Software—54.7% | ||||||||
40,017 | Adobe Systems, Inc.(b) | $ | 3,770,402 | |||||
57,297 | Aspen Technology, Inc.(b) | 2,179,005 | ||||||
33,040 | Blackbaud, Inc. | 2,040,881 | ||||||
87,390 | Cadence Design Systems, Inc.(b) | 2,026,574 | ||||||
48,441 | Citrix Systems, Inc.(b) | 3,964,412 | ||||||
55,157 | Ebix, Inc. | 2,654,155 | ||||||
22,273 | Ellie Mae, Inc.(b) | 1,862,023 | ||||||
36,193 | Intuit, Inc. | 3,651,512 | ||||||
33,936 | Manhattan Associates, Inc.(b) | 2,054,485 | ||||||
11,919 | MicroStrategy, Inc., Class A(b) | 2,137,315 | ||||||
96,490 | Nuance Communications, Inc.(b) | 1,657,698 | ||||||
62,363 | Paylocity Holding Corp.(b) | 2,386,632 | ||||||
76,067 | Pegasystems, Inc. | 2,007,408 | ||||||
95,274 | RealPage, Inc.(b) | 2,095,075 | ||||||
49,705 | salesforce.com, inc.(b) | 3,767,639 | ||||||
11,060 | Ultimate Software Group, Inc. (The)(b) | 2,174,285 | ||||||
|
| |||||||
40,429,501 | ||||||||
|
| |||||||
Data Processing & Outsourced Services—13.9% | ||||||||
66,324 | Black Knight Financial Services, Inc., Class A(b) | 2,121,042 | ||||||
48,995 | CSG Systems International, Inc. | 2,174,398 | ||||||
17,810 | DST Systems, Inc. | 2,149,311 | ||||||
22,708 | Jack Henry & Associates, Inc. | 1,840,029 | ||||||
69,418 | Sabre Corp. | 2,009,651 | ||||||
|
| |||||||
10,294,431 | ||||||||
|
| |||||||
Health Care Technology—7.5% | ||||||||
150,858 | Allscripts Healthcare Solutions, Inc.(b) | 2,021,497 | ||||||
34,381 | Computer Programs & Systems, Inc. | 1,764,777 | ||||||
123,063 | Quality Systems, Inc. | 1,732,727 | ||||||
|
| |||||||
5,519,001 | ||||||||
|
| |||||||
Home Entertainment Software—12.0% | ||||||||
108,669 | Activision Blizzard, Inc. | 3,745,820 | ||||||
53,770 | Electronic Arts, Inc.(b) | 3,325,675 | ||||||
52,786 | Take-Two Interactive Software, Inc.(b) | 1,804,225 | ||||||
|
| |||||||
8,875,720 | ||||||||
|
| |||||||
Internet Software & Services—2.7% | ||||||||
210,261 | inContact, Inc.(b) | 1,957,530 | ||||||
|
| |||||||
IT Consulting & Other Services—4.6% | ||||||||
60,227 | Amdocs Ltd. | 3,405,235 | ||||||
|
| |||||||
Systems Software—4.6% | ||||||||
67,553 | Microsoft Corp. | 3,368,868 | ||||||
|
| |||||||
Total Common Stocks (Cost $72,370,999) | 73,850,286 | |||||||
|
| |||||||
Money Market Fund—0.1% | ||||||||
51,392 | Invesco Premier Portfolio—Institutional Class, 0.39%(c) (Cost $51,392) | 51,392 | ||||||
|
| |||||||
Total Investments (Cost $72,422,391)—100.1% | 73,901,678 | |||||||
Other assets less liabilities—(0.1)% | (55,094 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 73,846,584 | ||||||
|
|
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 48 |
|
(This Page Intentionally Left Blank)
Statements of Assets and Liabilities
April 30, 2016
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 Leisure and Entertainment Portfolio (PEJ) | ||||||||||||||||
Assets: | ||||||||||||||||||||
Unaffiliated investments, at value(a) | $ | 267,499,193 | $ | 60,179,866 | $ | 74,684,036 | $ | 300,475,934 | $ | 142,816,488 | ||||||||||
Affiliated investments, at value | 35,244,922 | 76,494 | 178,894 | 150,639 | 36,615 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total investments, at value | 302,744,115 | 60,256,360 | 74,862,930 | 300,626,573 | 142,853,103 | |||||||||||||||
Receivables: | ||||||||||||||||||||
Securities lending | 212,735 | — | 2,179 | — | — | |||||||||||||||
Dividends | 19 | 19,831 | 30,381 | 373,638 | 35,320 | |||||||||||||||
Investments sold | — | — | — | — | 21,726,487 | |||||||||||||||
Shares sold | — | — | — | — | — | |||||||||||||||
Other assets | 2,943 | 3,333 | 3,333 | 2,943 | 3,333 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Assets | 302,959,812 | 60,279,524 | 74,898,823 | 301,003,154 | 164,618,243 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Liabilities: | ||||||||||||||||||||
Due to custodian | 8,840 | — | — | — | — | |||||||||||||||
Payables: | ||||||||||||||||||||
Collateral upon return of securities loaned | 35,158,423 | — | 137,250 | — | — | |||||||||||||||
Shares repurchased | — | — | — | — | 21,722,030 | |||||||||||||||
Investments purchased | — | — | — | 330,831 | — | |||||||||||||||
Accrued advisory fees | 113,685 | 25,153 | 22,105 | 129,332 | 70,813 | |||||||||||||||
Accrued trustees’ and officer’s fees | 28,270 | 17,707 | 19,962 | 23,856 | 18,530 | |||||||||||||||
Accrued expenses | 66,462 | 35,582 | 37,776 | 64,040 | 52,580 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Liabilities | 35,375,680 | 78,442 | 217,093 | 548,059 | 21,863,953 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Assets | $ | 267,584,132 | $ | 60,201,082 | $ | 74,681,730 | $ | 300,455,095 | $ | 142,754,290 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Assets Consist of: | ||||||||||||||||||||
Shares of beneficial interest | $ | 492,981,142 | $ | 76,668,585 | $ | 176,169,904 | $ | 358,782,422 | $ | 182,303,758 | ||||||||||
Undistributed net investment income (loss) | 36,883 | 49,810 | 3,806,375 | 711,699 | (17,566 | ) | ||||||||||||||
Undistributed net realized gain (loss) | (204,760,197 | ) | (24,197,766 | ) | (111,788,385 | ) | (72,007,856 | ) | (40,708,201 | ) | ||||||||||
Net unrealized appreciation (depreciation) | (20,673,696 | ) | 7,680,453 | 6,493,836 | 12,968,830 | 1,176,299 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Assets | $ | 267,584,132 | $ | 60,201,082 | $ | 74,681,730 | $ | 300,455,095 | $ | 142,754,290 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Shares outstanding (unlimited amount authorized, $0.01 par value) | 6,800,000 | 2,400,000 | 3,300,000 | 9,300,000 | 4,000,000 | |||||||||||||||
Net asset value | $ | 39.35 | $ | 25.08 | $ | 22.63 | $ | 32.31 | $ | 35.69 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Market price | $ | 39.35 | $ | 25.08 | $ | 22.63 | $ | 32.30 | $ | 35.68 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Unaffiliated investments, at cost | $ | 288,172,889 | $ | 52,499,413 | $ | 68,190,200 | $ | 287,507,104 | $ | 141,640,189 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Affiliated investments, at cost | $ | 35,244,922 | $ | 76,494 | $ | 178,894 | $ | 150,639 | $ | 36,615 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total investments, at cost | $ | 323,417,811 | $ | 52,575,907 | $ | 68,369,094 | $ | 287,657,743 | $ | 141,676,804 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
(a) Includes securities on loan with an aggregate value of | $ | 34,065,379 | $ | — | $ | 133,000 | $ | — | $ | — | ||||||||||
|
|
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements which are an integral part of the 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) | ||||||||||||||||||||
$ | 90,534,309 | $ | 20,184,512 | $ | 45,543,108 | $ | 1,115,932,454 | $ | 21,406,999 | $ | 49,015,751 | $ | 73,850,286 | |||||||||||||
20,520 | 805,147 | 130,910 | 154,760,898 | 53,293 | 37,408 | 51,392 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
90,554,829 | 20,989,659 | 45,674,018 | 1,270,693,352 | 21,460,292 | 49,053,159 | 73,901,678 | ||||||||||||||||||||
— | 2,254 | 2,111 | 113,014 | — | — | — | ||||||||||||||||||||
9 | 2,510 | 9,169 | 661,081 | 8,777 | 16,741 | 28,273 | ||||||||||||||||||||
1,258,892 | — | — | — | — | — | — | ||||||||||||||||||||
— | — | — | 6,215,502 | — | — | — | ||||||||||||||||||||
3,333 | 3,333 | 2,943 | 3,346 | 3,333 | 3,333 | 3,333 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
91,817,063 | 20,997,756 | 45,688,241 | 1,277,686,295 | 21,472,402 | 49,073,233 | 73,933,284 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
— | — | — | — | — | — | — | ||||||||||||||||||||
— | 752,950 | 82,800 | 102,168,125 | — | — | — | ||||||||||||||||||||
1,257,772 | — | — | — | — | — | — | ||||||||||||||||||||
— | — | — | 6,214,265 | — | — | — | ||||||||||||||||||||
36,654 | 4,522 | 11,257 | 489,579 | 5,730 | 17,805 | 26,417 | ||||||||||||||||||||
20,304 | 16,535 | 25,291 | 42,500 | 15,744 | 16,481 | 17,224 | ||||||||||||||||||||
41,359 | 34,430 | 35,085 | 246,118 | 34,470 | 40,096 | 43,059 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
1,356,089 | 808,437 | 154,433 | 109,160,587 | 55,944 | 74,382 | 86,700 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 90,460,974 | $ | 20,189,319 | $ | 45,533,808 | $ | 1,168,525,708 | $ | 21,416,458 | $ | 48,998,851 | $ | 73,846,584 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 163,177,705 | $ | 54,804,110 | $ | 268,982,665 | $ | 1,357,051,704 | $ | 43,427,414 | $ | 94,149,786 | $ | 99,891,228 | |||||||||||||
(19,384 | ) | 90,135 | 84,581 | 1,763,750 | 19,111 | 138,069 | (58,979 | ) | ||||||||||||||||||
(75,424,217 | ) | (35,956,383 | ) | (217,367,780 | ) | (107,160,600 | ) | (21,697,340 | ) | (44,382,217 | ) | (27,464,952 | ) | |||||||||||||
2,726,870 | 1,251,457 | (6,165,658 | ) | (83,129,146 | ) | (332,727 | ) | (906,787 | ) | 1,479,287 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 90,460,974 | $ | 20,189,319 | $ | 45,533,808 | $ | 1,168,525,708 | $ | 21,416,458 | $ | 48,998,851 | $ | 73,846,584 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
3,600,000 | 600,000 | 3,450,000 | 18,800,000 | 600,000 | 2,000,000 | 1,750,000 | ||||||||||||||||||||
$ | 25.13 | $ | 33.65 | $ | 13.20 | $ | 62.16 | $ | 35.69 | $ | 24.50 | $ | 42.20 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 25.12 | $ | 33.65 | $ | 13.19 | $ | 62.14 | $ | 35.69 | $ | 24.48 | $ | 42.21 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 87,807,439 | $ | 18,933,055 | $ | 51,708,766 | $ | 1,173,991,392 | $ | 21,739,726 | $ | 49,922,538 | $ | 72,370,999 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 20,520 | $ | 805,147 | $ | 130,910 | $ | 179,831,106 | $ | 53,293 | $ | 37,408 | $ | 51,392 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | 87,827,959 | $ | 19,738,202 | $ | 51,839,676 | $ | 1,353,822,498 | $ | 21,793,019 | $ | 49,959,946 | $ | 72,422,391 | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | — | $ | 742,775 | $ | 79,776 | $ | 93,686,697 | $ | — | $ | — | $ | — | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 51 |
|
For the year ended April 30, 2016
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 Leisure and Entertainment Portfolio (PEJ) | ||||||||||||||||
Investment Income: | ||||||||||||||||||||
Unaffiliated dividend income | $ | 1,680,604 | $ | 468,152 | $ | 1,724,496 | $ | 4,536,292 | $ | 1,734,386 | ||||||||||
Affiliated dividend income | 799 | 131 | 167 | 245 | 185 | |||||||||||||||
Securities lending income | 5,062,630 | — | 761,588 | — | — | |||||||||||||||
Foreign withholding tax | — | — | — | — | — | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Income | 6,744,033 | 468,283 | 2,486,251 | 4,536,537 | 1,734,571 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Expenses: | ||||||||||||||||||||
Advisory fees | 2,129,846 | 289,647 | 454,277 | 1,265,579 | 962,761 | |||||||||||||||
Sub-licensing fees | 127,791 | 17,379 | 27,257 | 75,936 | 57,766 | |||||||||||||||
Accounting & administration fees | 83,391 | 34,792 | 35,053 | 45,479 | 36,615 | |||||||||||||||
Custodian & transfer agent fees | 32,886 | 3,904 | 5,081 | 8,987 | 6,086 | |||||||||||||||
Professional fees | 31,532 | 25,155 | 33,313 | 27,444 | 31,734 | |||||||||||||||
Trustees’ and officer’s fees | 16,204 | 8,715 | 9,423 | 12,037 | 11,315 | |||||||||||||||
Recapture (Note 3) | — | — | — | — | 39,775 | |||||||||||||||
Other expenses | 52,066 | 14,050 | 40,973 | 38,368 | 31,116 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Expenses | 2,473,716 | 393,642 | 605,377 | 1,473,830 | 1,177,168 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Less: Waivers | (598 | ) | (28,809 | ) | (15,721 | ) | (269 | ) | (176 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Expenses | 2,473,118 | 364,833 | 589,656 | 1,473,561 | 1,176,992 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Investment Income (Loss) | 4,270,915 | 103,450 | 1,896,595 | 3,062,976 | 557,579 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Realized and Unrealized Gain (Loss): | ||||||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||||||
Investment securities | (79,726,495 | ) | (3,075,613 | ) | (41,723,997 | ) | (21,963,276 | ) | (20,719,890 | ) | ||||||||||
In-kind redemptions | 41,709,277 | 3,629,890 | 2,498,156 | 35,578,036 | 17,108,993 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net realized gain (loss) | (38,017,218 | ) | 554,277 | (39,225,841 | ) | 13,614,760 | (3,610,897 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net change in unrealized appreciation (depreciation) on investment securities | (78,486,936 | ) | 3,421,640 | 776,822 | (1,735,070 | ) | (5,120,787 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net realized and unrealized gain (loss) | (116,504,154 | ) | 3,975,917 | (38,449,019 | ) | 11,879,690 | (8,731,684 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net increase (decrease) in net assets resulting from operations | $ | (112,233,239 | ) | $ | 4,079,367 | $ | (36,552,424 | ) | $ | 14,942,666 | $ | (8,174,105 | ) | |||||||
|
|
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements which are an integral part of the 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) | ||||||||||||||||||||
$ | 1,071,926 | $ | 173,821 | $ | 998,009 | $ | 18,374,249 | $ | 326,315 | $ | 664,937 | $ | 351,861 | |||||||||||||
173 | 123 | 106 | 8,261 | 105 | 341 | 192 | ||||||||||||||||||||
— | 84,727 | 61,385 | 736,598 | — | — | — | ||||||||||||||||||||
(1,215 | ) | — | (9,120 | ) | — | — | — | (17,921 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
1,070,884 | 258,671 | 1,050,380 | 19,119,108 | 326,420 | 665,278 | 334,132 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
614,735 | 123,185 | 251,750 | 8,364,825 | 125,520 | 327,986 | 381,668 | ||||||||||||||||||||
36,885 | 7,391 | 15,104 | 501,892 | 7,531 | 19,680 | 22,900 | ||||||||||||||||||||
34,789 | 34,785 | 34,858 | 330,274 | 34,846 | 34,823 | 34,825 | ||||||||||||||||||||
5,777 | 3,628 | 4,023 | 50,595 | 3,508 | 5,896 | 4,092 | ||||||||||||||||||||
26,611 | 25,464 | 28,920 | 49,923 | 25,181 | 26,226 | 25,839 | ||||||||||||||||||||
10,077 | 8,114 | 8,621 | 40,172 | 8,154 | 8,966 | 8,983 | ||||||||||||||||||||
— | — | — | — | — | — | — | ||||||||||||||||||||
26,617 | 14,820 | 19,401 | 151,082 | 15,026 | 22,350 | 21,942 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
755,491 | 217,387 | 362,677 | 9,488,763 | 219,766 | 445,927 | 500,249 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
(185 | ) | (62,297 | ) | (45,585 | ) | (9,427 | ) | (61,714 | ) | (32,941 | ) | (19,491 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
755,306 | 155,090 | 317,092 | 9,479,336 | 158,052 | 412,986 | 480,758 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
315,578 | 103,581 | 733,288 | 9,639,772 | 168,368 | 252,292 | (146,626 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
(18,460,559 | ) | (2,171,347 | ) | (21,669,418 | ) | (102,911,598 | ) | (3,596,491 | ) | (9,747,000 | ) | (5,316,953 | ) | |||||||||||||
12,302,546 | 3,278,763 | 504,353 | 238,620,291 | 3,655,611 | 4,865,093 | 4,800,544 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
(6,158,013 | ) | 1,107,416 | (21,165,065 | ) | 135,708,693 | 59,120 | (4,881,907 | ) | (516,409 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
(6,304,545 | ) | (3,430,513 | ) | (975,438 | ) | (370,625,568 | ) | (1,126,743 | ) | (3,462,052 | ) | (4,707,107 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
(12,462,558 | ) | (2,323,097 | ) | (22,140,503 | ) | (234,916,875 | ) | (1,067,623 | ) | (8,343,959 | ) | (5,223,516 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
$ | (12,146,980 | ) | $ | (2,219,516 | ) | $ | (21,407,215 | ) | $ | (225,277,103 | ) | $ | (899,255 | ) | $ | (8,091,667 | ) | $ | (5,370,142 | ) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 53 |
|
Statements of Changes in Net Assets
For the years ended April 30, 2016 and 2015
PowerShares Dynamic Biotechnology & Genome Portfolio (PBE) | PowerShares Dynamic Building & Construction Portfolio (PKB) | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 4,270,915 | $ | 3,024,062 | $ | 103,450 | $ | 125,957 | ||||||||
Net realized gain (loss) | (38,017,218 | ) | 75,495,125 | 554,277 | 615,425 | |||||||||||
Net change in unrealized appreciation (depreciation) | (78,486,936 | ) | 39,345,361 | 3,421,640 | (2,912,498 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | (112,233,239 | ) | 117,864,548 | 4,079,367 | (2,171,116 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions to Shareholders from: | ||||||||||||||||
Net investment income | (4,955,367 | ) | (2,402,943 | ) | (67,537 | ) | (69,918 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shareholder Transactions: | ||||||||||||||||
Proceeds from shares sold | 93,026,648 | 250,854,414 | 34,203,109 | 59,533,158 | ||||||||||||
Value of shares repurchased | (219,516,036 | ) | (216,373,603 | ) | (33,191,270 | ) | (125,802,719 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from shares transactions | (126,489,388 | ) | 34,480,811 | 1,011,839 | (66,269,561 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Increase (Decrease) in Net Assets | (243,677,994 | ) | 149,942,416 | 5,023,669 | (68,510,595 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets: | ||||||||||||||||
Beginning of year | 511,262,126 | 361,319,710 | 55,177,413 | 123,688,008 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of year | $ | 267,584,132 | $ | 511,262,126 | $ | 60,201,082 | $ | 55,177,413 | ||||||||
|
|
|
| �� |
|
|
|
| ||||||||
Undistributed net investment income at end of year | $ | 36,883 | $ | 721,335 | $ | 49,810 | $ | 13,897 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Changes in Shares Outstanding: | ||||||||||||||||
Shares sold | 1,750,000 | 4,800,000 | 1,400,000 | 2,700,000 | ||||||||||||
Shares repurchased | (4,600,000 | ) | (4,250,000 | ) | (1,400,000 | ) | (5,900,000 | ) | ||||||||
Shares outstanding, beginning of year | 9,650,000 | 9,100,000 | 2,400,000 | 5,600,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Shares outstanding, end of year | 6,800,000 | 9,650,000 | 2,400,000 | 2,400,000 | ||||||||||||
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 54 |
|
PowerShares Dynamic Energy Exploration & Production Portfolio (PXE) | PowerShares Dynamic Food & Beverage Portfolio (PBJ) | PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ) | PowerShares Dynamic Media Portfolio (PBS) | |||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||||
$ | 1,896,595 | $ | 1,436,050 | $ | 3,062,976 | $ | 3,196,087 | $ | 557,579 | $ | 1,420,491 | $ | 315,578 | $ | 1,313,491 | |||||||||||||||
(39,225,841 | ) | (12,857,038 | ) | 13,614,760 | 46,360,360 | (3,610,897 | ) | 9,617,141 | (6,158,013 | ) | 4,042,249 | |||||||||||||||||||
776,822 | (9,926,226 | ) | (1,735,070 | ) | (2,123,925 | ) | (5,120,787 | ) | 5,914,162 | (6,304,545 | ) | 14,815,252 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
(36,552,424 | ) | (21,347,214 | ) | 14,942,666 | 47,432,522 | (8,174,105 | ) | 16,951,794 | (12,146,980 | ) | 20,170,992 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
(2,429,800 | ) | (1,923,020 | ) | (2,995,165 | ) | (4,913,796 | ) | (444,265 | ) | (1,429,697 | ) | (1,074,222 | ) | (1,051,471 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
| �� |
|
|
|
|
|
| |||||||||||||||
49,529,499 | 130,833,909 | 342,040,166 | 308,461,538 | 158,374,155 | 181,183,360 | 125,469,044 | 165,292,831 | |||||||||||||||||||||||
(53,458,266 | ) | (120,243,852 | ) | (319,253,170 | ) | (519,631,016 | ) | (199,941,946 | ) | (181,694,812 | ) | (167,455,100 | ) | (210,173,828 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
(3,928,767 | ) | 10,590,057 | 22,786,996 | (211,169,478 | ) | (41,567,791 | ) | (511,452 | ) | (41,986,056 | ) | (44,880,997 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
(42,910,991 | ) | (12,680,177 | ) | 34,734,497 | (168,650,752 | ) | (50,186,161 | ) | 15,010,645 | (55,207,258 | ) | (25,761,476 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
117,592,721 | 130,272,898 | 265,720,598 | 434,371,350 | 192,940,451 | 177,929,806 | 145,668,232 | 171,429,708 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | 74,681,730 | $ | 117,592,721 | $ | 300,455,095 | $ | 265,720,598 | $ | 142,754,290 | $ | 192,940,451 | $ | 90,460,974 | $ | 145,668,232 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
$ | 3,806,375 | $ | 603,317 | $ | 711,699 | $ | 643,888 | $ | (17,566 | ) | $ | (14,515 | ) | $ | (19,384 | ) | $ | 365,169 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
1,800,000 | 3,850,000 | 10,700,000 | 10,300,000 | 4,250,000 | 4,950,000 | 4,800,000 | 6,550,000 | |||||||||||||||||||||||
(2,200,000 | ) | (3,600,000 | ) | (9,850,000 | ) | (17,950,000 | ) | (5,550,000 | ) | (5,150,000 | ) | (6,650,000 | ) | (8,300,000 | ) | |||||||||||||||
3,700,000 | 3,450,000 | 8,450,000 | 16,100,000 | 5,300,000 | 5,500,000 | 5,450,000 | 7,200,000 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
3,300,000 | 3,700,000 | 9,300,000 | 8,450,000 | 4,000,000 | 5,300,000 | 3,600,000 | 5,450,000 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 55 |
|
Statements of Changes in Net Assets (continued)
For the years ended April 30, 2016 and 2015
PowerShares Dynamic Networking Portfolio (PXQ) | PowerShares Dynamic Oil & Gas Services Portfolio (PXJ) | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Operations: | ||||||||||||||||
Net investment income (loss) | $ | 103,581 | $ | (5,788 | ) | $ | 733,288 | $ | 893,246 | |||||||
Net realized gain (loss) | 1,107,416 | 3,439,892 | (21,165,065 | ) | (12,704,562 | ) | ||||||||||
Net change in unrealized appreciation (depreciation) | (3,430,513 | ) | 915,524 | (975,438 | ) | (25,846,369 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | (2,219,516 | ) | 4,349,628 | (21,407,215 | ) | (37,657,685 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions to Shareholders from: | ||||||||||||||||
Net investment income | — | — | (831,786 | ) | (1,024,494 | ) | ||||||||||
Net realized gains | — | — | — | — | ||||||||||||
Return of capital | — | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions to shareholders | — | — | (831,786 | ) | (1,024,494 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Shareholder Transactions: | ||||||||||||||||
Proceeds from shares sold | 9,058,713 | 17,339,824 | 15,134,853 | 45,413,320 | ||||||||||||
Value of shares repurchased | (14,134,635 | ) | (23,847,484 | ) | (20,147,734 | ) | (69,794,901 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from shares transactions | (5,075,922 | ) | (6,507,660 | ) | (5,012,881 | ) | (24,381,581 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Increase (Decrease) in Net Assets | (7,295,438 | ) | (2,158,032 | ) | (27,251,882 | ) | (63,063,760 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets: | ||||||||||||||||
Beginning of year | 27,484,757 | 29,642,789 | 72,785,690 | 135,849,450 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of year | $ | 20,189,319 | $ | 27,484,757 | $ | 45,533,808 | $ | 72,785,690 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income (loss) at end of year | $ | 90,135 | $ | (13,446 | ) | $ | 84,581 | $ | 152,146 | |||||||
|
|
|
|
|
|
|
| |||||||||
Changes in Shares Outstanding: | ||||||||||||||||
Shares sold | 250,000 | 500,000 | 1,050,000 | 2,000,000 | ||||||||||||
Shares repurchased | (400,000 | ) | (700,000 | ) | (1,450,000 | ) | (3,000,000 | ) | ||||||||
Shares outstanding, beginning of year | 750,000 | 950,000 | 3,850,000 | 4,850,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Shares outstanding, end of year | 600,000 | 750,000 | 3,450,000 | 3,850,000 | ||||||||||||
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 56 |
|
PowerShares Dynamic Pharmaceuticals Portfolio (PJP) | PowerShares Dynamic Retail Portfolio (PMR) | PowerShares Dynamic Semiconductors Portfolio (PSI) | PowerShares Dynamic Software Portfolio (PSJ) | |||||||||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||||||||
$ | 9,639,772 | $ | 6,922,569 | $ | 168,368 | $ | 144,257 | $ | 252,292 | $ | 374,605 | $ | (146,626 | ) | $ | 149,496 | ||||||||||||||
135,708,693 | 289,031,374 | 59,120 | 803,164 | (4,881,907 | ) | 5,444,352 | (516,409 | ) | 4,055,280 | |||||||||||||||||||||
(370,625,568 | ) | 92,127,128 | (1,126,743 | ) | 827,688 | (3,462,052 | ) | 165,344 | (4,707,107 | ) | 7,072,718 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
(225,277,103 | ) | 388,081,071 | (899,255 | ) | 1,775,109 | (8,091,667 | ) | 5,984,301 | (5,370,142 | ) | 11,277,494 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
(9,438,012 | ) | (6,839,864 | ) | (182,321 | ) | (205,959 | ) | (100,980 | ) | (415,087 | ) | (83,133 | ) | (49,038 | ) | |||||||||||||||
(78,190,579 | ) | (36,562,562 | ) | — | — | — | — | — | — | |||||||||||||||||||||
— | — | — | — | — | (146,696 | ) | — | — | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
(87,628,591 | ) | (43,402,426 | ) | (182,321 | ) | (205,959 | ) | (100,980 | ) | (561,783 | ) | (83,133 | ) | (49,038 | ) | |||||||||||||||
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402,286,845 | 896,877,939 | 18,333,024 | 38,457,393 | 43,249,104 | 89,671,046 | 98,889,794 | 47,870,360 | |||||||||||||||||||||||
(847,789,130 | ) | (418,629,721 | ) | (34,245,374 | ) | (26,479,719 | ) | (64,968,217 | ) | (36,803,945 | ) | (76,919,326 | ) | (56,104,715 | ) | |||||||||||||||
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(445,502,285 | ) | 478,248,218 | (15,912,350 | ) | 11,977,674 | (21,719,113 | ) | 52,867,101 | 21,970,468 | (8,234,355 | ) | |||||||||||||||||||
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(758,407,979 | ) | 822,926,863 | (16,993,926 | ) | 13,546,824 | (29,911,760 | ) | 58,289,619 | 16,517,193 | 2,994,101 | ||||||||||||||||||||
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1,926,933,687 | 1,104,006,824 | 38,410,384 | 24,863,560 | 78,910,611 | 20,620,992 | 57,329,391 | 54,335,290 | |||||||||||||||||||||||
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$ | 1,168,525,708 | $ | 1,926,933,687 | $ | 21,416,458 | $ | 38,410,384 | $ | 48,998,851 | $ | 78,910,611 | $ | 73,846,584 | $ | 57,329,391 | |||||||||||||||
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$ | 1,763,750 | $ | 1,561,990 | $ | 19,111 | $ | 33,064 | $ | 138,069 | $ | (13,243 | ) | $ | (58,979 | ) | $ | 69,256 | |||||||||||||
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5,400,000 | 12,950,000 | 500,000 | 1,000,000 | 1,600,000 | 3,450,000 | 2,300,000 | 1,200,000 | |||||||||||||||||||||||
(12,500,000 | ) | (6,200,000 | ) | (900,000 | ) | (750,000 | ) | (2,600,000 | ) | (1,450,000 | ) | (1,900,000 | ) | (1,450,000 | ) | |||||||||||||||
25,900,000 | 19,150,000 | 1,000,000 | 750,000 | 3,000,000 | 1,000,000 | 1,350,000 | 1,600,000 | |||||||||||||||||||||||
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18,800,000 | 25,900,000 | 600,000 | 1,000,000 | 2,000,000 | 3,000,000 | 1,750,000 | 1,350,000 | |||||||||||||||||||||||
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| 57 |
|
PowerShares Dynamic Biotechnology & Genome Portfolio (PBE)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 52.98 | $ | 39.71 | $ | 28.26 | $ | 22.26 | $ | 23.14 | ||||||||||
Net investment income (loss)(a) | 0.50 | 0.34 | 0.03 | (0.05 | ) | (0.04 | ) | |||||||||||||
Net realized and unrealized gain (loss) on investments | (13.56 | ) | 13.21 | 11.42 | 6.05 | (0.84 | ) | |||||||||||||
Total from investment operations | (13.06 | ) | 13.55 | 11.45 | 6.00 | (0.88 | ) | |||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.57 | ) | (0.28 | ) | — | — | — | |||||||||||||
Net asset value at end of year | $ | 39.35 | $ | 52.98 | $ | 39.71 | $ | 28.26 | $ | 22.26 | ||||||||||
Market price at end of year(b) | $ | 39.35 | $ | 52.95 | $ | 39.68 | $ | 28.27 | $ | 22.21 | ||||||||||
Net Asset Value Total Return:(c) | (24.92 | )% | 34.25 | % | 40.52 | % | 26.96 | % | (3.80 | )% | ||||||||||
Market Price Total Return(c) | (24.88 | )% | 34.28 | % | 40.36 | % | 27.29 | % | (4.18 | )% | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 267,584 | $ | 511,262 | $ | 361,320 | $ | 155,453 | $ | 136,903 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.58 | % | 0.57 | % | 0.59 | % | 0.63 | % | 0.63 | % | ||||||||||
Expenses, prior to Waivers | 0.58 | % | 0.57 | % | 0.59 | % | 0.63 | % | 0.64 | % | ||||||||||
Net investment income (loss), after Waivers | 1.00 | % | 0.69 | % | 0.09 | % | (0.20 | )% | (0.21 | )% | ||||||||||
Portfolio turnover rate(d) | 74 | % | 95 | % | 64 | % | 53 | % | 53 | % |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 58 |
|
Financial Highlights (continued)
PowerShares Dynamic Building & Construction Portfolio (PKB)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 22.99 | $ | 22.09 | $ | 19.65 | $ | 14.23 | $ | 14.11 | ||||||||||
Net investment income(a) | 0.04 | 0.03 | 0.00 | (b) | 0.07 | 0.02 | ||||||||||||||
Net realized and unrealized gain on investments | 2.08 | 0.89 | 2.44 | 5.44 | 0.12 | |||||||||||||||
Total from investment operations | 2.12 | 0.92 | 2.44 | 5.51 | 0.14 | |||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.03 | ) | (0.02 | ) | — | (0.09 | ) | (0.02 | ) | |||||||||||
Net asset value at end of year | $ | 25.08 | $ | 22.99 | $ | 22.09 | $ | 19.65 | $ | 14.23 | ||||||||||
Market price at end of year(c) | $ | 25.08 | $ | 22.98 | $ | 22.10 | $ | 19.63 | $ | 14.20 | ||||||||||
Net Asset Value Total Return:(d) | 9.21 | % | 4.17 | % | 12.42 | % | 38.85 | % | 0.99 | % | ||||||||||
Market Price Total Return(d) | 9.26 | % | 4.08 | % | 12.58 | % | 39.01 | % | 0.92 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 60,201 | $ | 55,177 | $ | 123,688 | $ | 104,121 | $ | 30,600 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | ||||||||||
Expenses, prior to Waivers | 0.68 | % | 0.65 | % | 0.63 | % | 0.69 | % | 1.01 | % | ||||||||||
Net investment income, after Waivers | 0.18 | % | 0.15 | % | 0.01 | % | 0.44 | % | 0.12 | % | ||||||||||
Portfolio turnover rate(e) | 90 | % | 96 | % | 117 | % | 95 | % | 72 | % |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
PowerShares Dynamic Energy Exploration & Production Portfolio (PXE)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 31.78 | $ | 37.76 | $ | 30.27 | $ | 24.58 | $ | 27.67 | ||||||||||
Net investment income(a) | 0.51 | 0.39 | 0.48 | 0.53 | 0.19 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (9.04 | ) | (5.84 | ) | 7.55 | 5.81 | (2.94 | ) | ||||||||||||
Total from investment operations | (8.53 | ) | (5.45 | ) | 8.03 | 6.34 | (2.75 | ) | ||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.62 | ) | (0.53 | ) | (0.54 | ) | (0.65 | ) | (0.34 | ) | ||||||||||
Net asset value at end of year | $ | 22.63 | $ | 31.78 | $ | 37.76 | $ | 30.27 | $ | 24.58 | ||||||||||
Market price at end of year(b) | $ | 22.63 | $ | 31.77 | $ | 37.76 | $ | 30.23 | $ | 24.57 | ||||||||||
Net Asset Value Total Return:(c) | (26.93 | )% | (14.51 | )% | 26.93 | % | 26.14 | % | (9.86 | )% | ||||||||||
Market Price Total Return(c) | (26.91 | )% | (14.54 | )% | 27.10 | % | 26.03 | % | (9.83 | )% | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 74,682 | $ | 117,593 | $ | 130,273 | $ | 104,427 | $ | 67,592 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.65 | % | 0.64 | % | 0.64 | % | 0.65 | % | 0.65 | % | ||||||||||
Expenses, prior to Waivers | 0.67 | % | 0.64 | % | 0.64 | % | 0.69 | % | 0.73 | % | ||||||||||
Net investment income, after Waivers | 2.09 | % | 1.20 | % | 1.46 | % | 1.97 | % | 0.81 | % | ||||||||||
Portfolio turnover rate(d) | 134 | % | 140 | % | 96 | % | 80 | % | 94 | % |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 59 |
|
Financial Highlights (continued)
PowerShares Dynamic Food & Beverage Portfolio (PBJ)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 31.45 | $ | 26.98 | $ | 23.62 | $ | 19.77 | $ | 19.76 | ||||||||||
Net investment income(a) | 0.39 | 0.31 | 0.38 | 0.26 | 0.22 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.88 | 4.58 | 3.19 | 3.92 | (0.03 | ) | ||||||||||||||
Total from investment operations | 1.27 | 4.89 | 3.57 | 4.18 | 0.19 | |||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.41 | ) | (0.42 | ) | (0.21 | ) | (0.33 | ) | (0.18 | ) | ||||||||||
Net asset value at end of year | $ | 32.31 | $ | 31.45 | $ | 26.98 | $ | 23.62 | $ | 19.77 | ||||||||||
Market price at end of year(b) | $ | 32.30 | $ | 31.43 | $ | 26.99 | $ | 23.61 | $ | 19.77 | ||||||||||
Net Asset Value Total Return:(c) | 4.06 | % | 18.25 | % | 15.16 | % | 21.45 | % | 1.02 | % | ||||||||||
Market Price Total Return(c) | 4.10 | % | 18.13 | % | 15.25 | % | 21.40 | % | 0.77 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 300,455 | $ | 265,721 | $ | 434,371 | $ | 236,226 | $ | 169,039 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.58 | % | 0.58 | % | 0.61 | % | 0.63 | % | 0.63 | % | ||||||||||
Expenses, prior to Waivers | 0.58 | % | 0.58 | % | 0.61 | % | 0.63 | % | 0.64 | % | ||||||||||
Net investment income, after Waivers | 1.21 | % | 1.05 | % | 1.47 | % | 1.28 | % | 1.13 | % | ||||||||||
Portfolio turnover rate(d) | 109 | % | 124 | % | 145 | % | 92 | % | 134 | % |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 36.40 | $ | 32.35 | $ | 27.23 | $ | 22.18 | $ | 19.34 | ||||||||||
Net investment income(a) | 0.11 | 0.31 | 0.15 | 0.12 | 0.15 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.74 | ) | 4.04 | 5.10 | 5.09 | 2.82 | ||||||||||||||
Total from investment operations | (0.63 | ) | 4.35 | 5.25 | 5.21 | 2.97 | ||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.08 | ) | (0.30 | ) | (0.13 | ) | (0.16 | ) | (0.13 | ) | ||||||||||
Net asset value at end of year | $ | 35.69 | $ | 36.40 | $ | 32.35 | $ | 27.23 | $ | 22.18 | ||||||||||
Market price at end of year(b) | $ | 35.68 | $ | 36.39 | $ | 32.34 | $ | 27.21 | $ | 22.20 | ||||||||||
Net Asset Value Total Return:(c) | (1.73 | )% | 13.47 | % | 19.29 | % | 23.67 | % | 15.49 | % | ||||||||||
Market Price Total Return(c) | (1.73 | )% | 13.47 | % | 19.34 | % | 23.47 | % | 15.59 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 142,754 | $ | 192,940 | $ | 177,930 | $ | 85,765 | $ | 57,679 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.61 | % | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | ||||||||||
Expenses, prior to Waivers | 0.61 | % | 0.63 | % | 0.63 | % | 0.69 | % | 0.80 | % | ||||||||||
Net investment income, after Waivers | 0.29 | % | 0.88 | % | 0.48 | % | 0.52 | % | 0.80 | % | ||||||||||
Portfolio turnover rate(d) | 136 | % | 187 | % | 171 | % | 93 | % | 90 | % |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 60 |
|
Financial Highlights (continued)
PowerShares Dynamic Media Portfolio (PBS)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 26.73 | $ | 23.81 | $ | 20.11 | $ | 14.84 | $ | 15.61 | ||||||||||
Net investment income(a) | 0.07 | 0.21 | 0.09 | 0.12 | 0.08 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (1.45 | ) | 2.89 | 3.70 | 5.28 | (0.76 | ) | |||||||||||||
Total from investment operations | (1.38 | ) | 3.10 | 3.79 | 5.40 | (0.68 | ) | |||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.22 | ) | (0.18 | ) | (0.09 | ) | (0.13 | ) | (0.09 | ) | ||||||||||
Net asset value at end of year | $ | 25.13 | $ | 26.73 | $ | 23.81 | $ | 20.11 | $ | 14.84 | ||||||||||
Market price at end of year(b) | $ | 25.12 | $ | 26.72 | $ | 23.79 | $ | 20.10 | $ | 14.84 | ||||||||||
Net Asset Value Total Return:(c) | (5.18 | )% | 13.04 | % | 18.87 | % | 36.62 | % | (4.33 | )% | ||||||||||
Market Price Total Return(c) | (5.18 | )% | 13.09 | % | 18.83 | % | 36.55 | % | (4.33 | )% | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 90,461 | $ | 145,668 | $ | 171,430 | $ | 150,788 | $ | 137,975 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.61 | % | 0.59 | % | 0.62 | % | 0.63 | % | 0.63 | % | ||||||||||
Expenses, prior to Waivers | 0.61 | % | 0.59 | % | 0.62 | % | 0.63 | % | 0.65 | % | ||||||||||
Net investment income, after Waivers | 0.26 | % | 0.84 | % | 0.38 | % | 0.71 | % | 0.60 | % | ||||||||||
Portfolio turnover rate(d) | 124 | % | 131 | % | 120 | % | 70 | % | 89 | % |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
PowerShares Dynamic Networking Portfolio (PXQ)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 36.65 | $ | 31.20 | $ | 25.00 | $ | 27.71 | $ | 29.20 | ||||||||||
Net investment income (loss)(a) | 0.15 | (0.01 | ) | (0.04 | ) | 0.20 | (b) | (0.06 | ) | |||||||||||
Net realized and unrealized gain (loss) on investments | (3.15 | ) | 5.46 | 6.44 | (2.85 | ) | (1.43 | ) | ||||||||||||
Total from investment operations | (3.00 | ) | 5.45 | 6.40 | (2.65 | ) | (1.49 | ) | ||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | — | — | (0.20 | ) | (0.06 | ) | — | |||||||||||||
Net asset value at end of year | $ | 33.65 | $ | 36.65 | $ | 31.20 | $ | 25.00 | $ | 27.71 | ||||||||||
Market price at end of year(c) | $ | 33.65 | $ | 36.64 | $ | 31.19 | $ | 24.97 | $ | 27.68 | ||||||||||
Net Asset Value Total Return:(d) | (8.19 | )% | 17.47 | % | 25.69 | % | (9.57 | )% | (5.10 | )% | ||||||||||
Market Price Total Return(d) | (8.16 | )% | 17.48 | % | 25.80 | % | (9.58 | )% | (5.20 | )% | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 20,189 | $ | 27,485 | $ | 29,643 | $ | 30,000 | $ | 81,739 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.63 | % | 0.63 | % | 0.63 | % | 0.64 | % | 0.63 | % | ||||||||||
Expenses, prior to Waivers | 0.88 | % | 0.85 | % | 0.82 | % | 0.75 | % | 0.67 | % | ||||||||||
Net investment income (loss), after Waivers | 0.42 | % | (0.02 | )% | (0.12 | )% | 0.81 | %(b) | (0.22 | )% | ||||||||||
Portfolio turnover rate(e) | 87 | % | 74 | % | 69 | % | 68 | % | 84 | % |
(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 per share owned of Tellabs, Inc. on December 24, 2012. Net investment loss per share and the ratio of net investment loss to average net assets excluding the special dividend are $(0.01) and (0.05)%, respectively. |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
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Financial Highlights (continued)
PowerShares Dynamic Oil & Gas Services Portfolio (PXJ)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 18.91 | $ | 28.01 | $ | 22.49 | $ | 20.48 | $ | 26.38 | ||||||||||
Net investment income (loss)(a) | 0.20 | 0.22 | 0.08 | 0.04 | (0.01 | ) | ||||||||||||||
Net realized and unrealized gain (loss) on investments | (5.69 | ) | (9.07 | ) | 5.53 | (b) | 2.00 | (5.89 | ) | |||||||||||
Total from investment operations | (5.49 | ) | (8.85 | ) | 5.61 | 2.04 | (5.90 | ) | ||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.22 | ) | (0.25 | ) | (0.09 | ) | (0.03 | ) | (0.00 | )(c) | ||||||||||
Net asset value at end of year | $ | 13.20 | $ | 18.91 | $ | 28.01 | $ | 22.49 | $ | 20.48 | ||||||||||
Market price at end of year(d) | $ | 13.19 | $ | 18.92 | $ | 28.00 | $ | 22.49 | $ | 20.48 | ||||||||||
Net Asset Value Total Return:(e) | (29.06 | )% | (31.67 | )% | 24.98 | %(b) | 9.95 | % | (22.36 | )% | ||||||||||
Market Price Total Return(e) | (29.15 | )% | (31.61 | )% | 24.94 | % | 9.95 | % | (22.36 | )% | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 45,534 | $ | 72,786 | $ | 135,849 | $ | 116,973 | $ | 147,485 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.63 | % | 0.63 | % | 0.61 | % | 0.62 | % | 0.63 | % | ||||||||||
Expenses, prior to Waivers | 0.72 | % | 0.64 | % | 0.61 | % | 0.62 | % | 0.63 | % | ||||||||||
Net investment income (loss), after Waivers | 1.46 | % | 0.96 | % | 0.31 | % | 0.18 | % | (0.03 | )% | ||||||||||
Portfolio turnover rate(f) | 89 | % | 79 | % | 259 | %(b) | 68 | % | 70 | % |
(a) | Based on average shares outstanding. |
(b) | Amount includes the effect of the Adviser pay-in for an economic loss of $0.43 per share. Had the pay-in not been made, the net asset value total return would have been 23.06%. In addition, the portfolio turnover calculation includes the value of securities purchased and sold related to this transaction. |
(c) | Amount represents less than $0.005. |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
PowerShares Dynamic Pharmaceuticals Portfolio (PJP)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 74.40 | $ | 57.65 | $ | 40.72 | $ | 32.00 | $ | 26.15 | ||||||||||
Net investment income(a) | 0.41 | 0.32 | 0.26 | 0.54 | (b) | 0.22 | ||||||||||||||
Net realized and unrealized gain (loss) on investments | (8.81 | ) | 18.42 | 16.90 | 8.72 | 5.83 | ||||||||||||||
Total from investment operations | (8.40 | ) | 18.74 | 17.16 | 9.26 | 6.05 | ||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.39 | ) | (0.34 | ) | (0.23 | ) | (0.54 | ) | (0.20 | ) | ||||||||||
Net realized gains | (3.45 | ) | (1.65 | ) | — | — | — | |||||||||||||
Total distributions | (3.84 | ) | (1.99 | ) | (0.23 | ) | (0.54 | ) | (0.20 | ) | ||||||||||
Net asset value at end of year | $ | 62.16 | $ | 74.40 | $ | 57.65 | $ | 40.72 | $ | 32.00 | ||||||||||
Market price at end of year(c) | $ | 62.14 | $ | 74.35 | $ | 57.60 | $ | 40.72 | $ | 31.99 | ||||||||||
Net Asset Value Total Return:(d) | (11.86 | )% | 32.95 | % | 42.27 | % | 29.25 | % | 23.29 | % | ||||||||||
Market Price Total Return(d) | (11.83 | )% | 32.97 | % | 42.15 | % | 29.29 | % | 23.16 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 1,168,526 | $ | 1,926,934 | $ | 1,104,007 | $ | 468,305 | $ | 270,385 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.57 | % | 0.56 | % | 0.58 | % | 0.63 | % | 0.63 | % | ||||||||||
Expenses, prior to Waivers | 0.57 | % | 0.56 | % | 0.58 | % | 0.63 | % | 0.64 | % | ||||||||||
Net investment income, after Waivers | 0.58 | % | 0.48 | % | 0.52 | % | 1.52 | %(b) | 0.77 | % | ||||||||||
Portfolio turnover rate(e) | 26 | % | 47 | % | 39 | % | 24 | % | 23 | % |
(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 $4 per share owned of Warner Chilcott PLC. on August 29, 2012. Net investment income per share and the ratio of net investment income to average net assets excluding the special dividend are $0.32 and 0.91%, respectively. |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
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Financial Highlights (continued)
PowerShares Dynamic Retail Portfolio (PMR)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 38.41 | $ | 33.15 | $ | 29.12 | $ | 25.98 | $ | 21.88 | ||||||||||
Net investment income(a) | 0.25 | 0.22 | 0.32 | 0.66 | 0.16 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (2.70 | ) | 5.38 | 3.99 | 3.11 | 4.17 | ||||||||||||||
Total from investment operations | (2.45 | ) | 5.60 | 4.31 | 3.77 | 4.33 | ||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.27 | ) | (0.34 | ) | (0.28 | ) | (0.63 | ) | (0.23 | ) | ||||||||||
Net asset value at end of year | $ | 35.69 | $ | 38.41 | $ | 33.15 | $ | 29.12 | $ | 25.98 | ||||||||||
Market price at end of year(b) | $ | 35.69 | $ | 38.42 | $ | 33.14 | $ | 29.11 | $ | 25.98 | ||||||||||
Net Asset Value Total Return:(c) | (6.40 | )% | 16.97 | % | 14.81 | % | 14.87 | % | 20.06 | % | ||||||||||
Market Price Total Return(c) | (6.42 | )% | 17.04 | % | 14.81 | % | 14.83 | % | 19.95 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 21,416 | $ | 38,410 | $ | 24,864 | $ | 24,750 | $ | 76,643 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | ||||||||||
Expenses, prior to Waivers | 0.88 | % | 0.91 | % | 0.79 | % | 0.74 | % | 0.87 | % | ||||||||||
Net investment income, after Waivers | 0.67 | % | 0.61 | % | 0.96 | % | 2.59 | % | 0.75 | % | ||||||||||
Portfolio turnover rate(d) | 129 | % | 111 | % | 184 | % | 83 | % | 111 | % |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
PowerShares Dynamic Semiconductors Portfolio (PSI)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 26.30 | $ | 20.62 | $ | 15.22 | $ | 15.75 | $ | 18.19 | ||||||||||
Net investment income(a) | 0.10 | 0.25 | (b) | 0.10 | 0.11 | 0.06 | ||||||||||||||
Net realized and unrealized gain (loss) on investments | (1.86 | ) | 5.88 | 5.41 | (0.52 | ) | (2.47 | ) | ||||||||||||
Total from investment operations | (1.76 | ) | 6.13 | 5.51 | (0.41 | ) | (2.41 | ) | ||||||||||||
Distribution to shareholder from: | ||||||||||||||||||||
Net investment income | (0.04 | ) | (0.33 | ) | (0.11 | ) | (0.12 | ) | (0.03 | ) | ||||||||||
Return of capital | — | (0.12 | ) | — | — | — | ||||||||||||||
Total distributions | (0.04 | ) | (0.45 | ) | (0.11 | ) | (0.12 | ) | (0.03 | ) | ||||||||||
Net asset value at end of year | $ | 24.50 | $ | 26.30 | $ | 20.62 | $ | 15.22 | $ | 15.75 | ||||||||||
Market price at end of year(c) | $ | 24.48 | $ | 26.31 | $ | 20.62 | $ | 15.19 | $ | 15.71 | ||||||||||
Net Asset Value Total Return:(d) | (6.69 | )% | 29.90 | % | 36.38 | % | (2.56 | )% | (13.20 | )% | ||||||||||
Market Price Total Return(d) | (6.80 | )% | 29.95 | % | 36.66 | % | (2.50 | )% | (13.47 | )% | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 48,999 | $ | 78,911 | $ | 20,621 | $ | 16,744 | $ | 21,261 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | ||||||||||
Expenses, prior to Waivers | 0.68 | % | 0.78 | % | 1.05 | % | 1.05 | % | 1.02 | % | ||||||||||
Net investment income, after Waivers | 0.38 | % | 1.03 | %(b) | 0.55 | % | 0.77 | % | 0.42 | % | ||||||||||
Portfolio turnover rate(e) | 104 | % | 103 | % | 126 | % | 91 | % | 57 | % |
(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 significant dividend received of $16.50 per share owned of KLA-Tencor Corp. on November 26, 2014. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividend are $0.05 and 0.22%, respectively. |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
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Financial Highlights (continued)
PowerShares Dynamic Software Portfolio (PSJ)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 42.47 | $ | 33.96 | $ | 30.16 | $ | 26.87 | $ | 27.47 | ||||||||||
Net investment income (loss)(a) | (0.08 | ) | 0.11 | (0.00 | )(b) | (0.01 | ) | (0.07 | ) | |||||||||||
Net realized and unrealized gain (loss) on investments | (0.13 | ) | 8.44 | 3.80 | 3.30 | (0.53 | ) | |||||||||||||
Total from investment operations | (0.21 | ) | 8.55 | 3.80 | 3.29 | (0.60 | ) | |||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.06 | ) | (0.04 | ) | — | — | — | |||||||||||||
Net asset value at end of year | $ | 42.20 | $ | 42.47 | $ | 33.96 | $ | 30.16 | $ | 26.87 | ||||||||||
Market price at end of year(c) | $ | 42.21 | $ | 42.48 | $ | 33.93 | $ | 30.12 | $ | 26.87 | ||||||||||
Net Asset Value Total Return:(d) | (0.50 | )% | 25.18 | % | 12.60 | % | 12.24 | % | (2.19 | )% | ||||||||||
Market Price Total Return(d) | (0.50 | )% | 25.32 | % | 12.65 | % | 12.09 | % | (2.22 | )% | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 73,847 | $ | 57,329 | $ | 54,335 | $ | 48,257 | $ | 49,710 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | 0.63 | % | ||||||||||
Expenses, prior to Waivers | 0.66 | % | 0.71 | % | 0.69 | % | 0.74 | % | 0.78 | % | ||||||||||
Net investment income (loss), after Waivers | (0.19 | )% | 0.29 | % | (0.01 | )% | (0.03 | )% | (0.29 | )% | ||||||||||
Portfolio turnover rate(e) | 154 | % | 132 | % | 150 | % | 95 | % | 100 | % |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
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PowerShares Exchange-Traded Fund Trust
April 30, 2016
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, 2016, the Trust offered fifty-three portfolios. This report includes the following portfolios:
Full Name | Short Name | |
PowerShares Dynamic Biotechnology & Genome Portfolio (PBE) | “Dynamic Biotechnology & Genome Portfolio” | |
PowerShares Dynamic Building & Construction Portfolio (PKB) | “Dynamic Building & Construction Portfolio” | |
PowerShares Dynamic Energy Exploration & Production Portfolio (PXE) | “Dynamic Energy Exploration & Production Portfolio” | |
PowerShares Dynamic Food & Beverage Portfolio (PBJ) | “Dynamic Food & Beverage Portfolio” | |
PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ) | “Dynamic Leisure and Entertainment Portfolio” | |
PowerShares Dynamic Media Portfolio (PBS) | “Dynamic Media Portfolio” | |
PowerShares Dynamic Networking Portfolio (PXQ) | “Dynamic Networking Portfolio” | |
PowerShares Dynamic Oil & Gas Services Portfolio (PXJ) | “Dynamic Oil & Gas Services Portfolio” | |
PowerShares Dynamic Pharmaceuticals Portfolio (PJP) | “Dynamic Pharmaceuticals Portfolio” | |
PowerShares Dynamic Retail Portfolio (PMR) | “Dynamic Retail Portfolio” | |
PowerShares Dynamic Semiconductors Portfolio (PSI) | “Dynamic Semiconductors Portfolio” | |
PowerShares Dynamic Software Portfolio (PSJ) | “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 NYSE Arca, Inc.
The market price of each Share 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 principally in exchange for the deposit or delivery of a basket of securities (“Deposit Securities”). 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 | Underlying Index | |
Dynamic Biotechnology & Genome Portfolio | Dynamic Biotech & 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 Leisure and Entertainment Portfolio | Dynamic Leisure & 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 Pharmaceutical IntellidexSM Index | |
Dynamic Retail Portfolio | Dynamic Retail IntellidexSM Index | |
Dynamic Semiconductors Portfolio | Dynamic Semiconductor 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
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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. The following is a summary of the significant accounting policies followed by the Funds in preparation of their financial statements.
A. Security Valuation
Securities, including restricted securities, are valued according to the following policies:
A security listed or traded on an exchange (except convertible securities) 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. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked 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 asked prices. For purposes of determining NAV per Share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day NAV per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the 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.
Debt obligations (including convertible securities) 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 (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Securities with a demand feature exercisable within one to seven days are valued at par. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts’) prices 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 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 Invesco PowerShares Capital Management LLC (the “Adviser”) determines 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’ prices 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. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith following procedures approved by the Board of Trustees. Issuer-specific events, market trends, bid/asked 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.
Each Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
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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 investing strategies that seek returns in excess of their Underlying Indexes. 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.
Equity Risk. Equity risk is the risk that the value of the securities that each Fund holds will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities that a 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 securities a Fund holds; the price of securities 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 securities a Fund holds. In addition, securities 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.
Industry Concentration Risk. In following its methodology, each Fund’s Underlying Index from time to time will be concentrated to a significant degree in securities of issuers located in a single industry or a sector. To the extent that an Underlying Index concentrates in the securities of issuers in a particular industry or sector, each Fund will also concentrate its investments to approximately the same extent. By concentrating its investments in an industry or sector, a Fund may face more risks than if it were diversified broadly over numerous industries or sectors. In addition, at times, an industry or sector may be out of favor and underperform other industries or the market as a whole. Any factors detrimental to the performance of such industry or sector will disproportionately impact a Fund’s NAV.
Non-Diversified Fund Risk. Each Fund is non-diversified and can invest a greater portion of its assets in securities of individual issuers than diversified funds. 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 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.
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.
Portfolio Turnover Risk. The Funds may engage in frequent trading of their portfolio securities in connection with the rebalancing or adjustment of their respective Underlying Index. A portfolio turnover rate of 200%, for example, is equivalent to a Fund buying and selling all of its securities two times during the course of a year. A high portfolio turnover rate (such as 100% or more) could result in high brokerage costs for a Fund. While a high portfolio turnover rate can result in an increase in taxable capital gain distributions to a Fund’s shareholders, each Fund will seek to utilize an in-kind creation and redemption mechanism to minimize realization of capital gains to the extent possible.
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.
Each Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed each Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
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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 Transactions and Investment Income
Investment transactions are accounted for on a trade date basis. Realized gains and losses from the sale or disposition of securities are computed on the specific identified cost basis. Interest income is recorded on the accrual basis. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Realized gains, dividends and interest received by a Fund may give rise to withholding and other taxes imposed by foreign countries. Tax conventions between certain countries and the United States may reduce or eliminate such taxes.
The Funds may periodically participate in litigation related to each Fund’s investments. As such, the Funds may receive proceeds from litigation settlements. Any proceeds received are included in the Statements of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Corporate actions (including cash dividends) are recorded net of non-reclaimable foreign tax withholdings on the ex-date.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statements of Operations and the Statements of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of each Fund’s net asset value and, accordingly, they reduce each Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statements of Operations and the Statements of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between each Fund and the Adviser.
E. Country Determination
For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the Adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
F. 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 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 (the “Independent Trustees”) or the Adviser, expenses incurred in connection with the Board members’ services, including travel expenses and legal fees of counsel for the Independent Trustees, acquired fund fees and expenses, if any, 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 such investment companies’ expenses are included in the realized and unrealized gain or loss on the investments in the investment companies.
G. 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. Generally, 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 federal 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 year-end.
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H. Securities Lending
During the fiscal year ended April 30, 2016, Dynamic Biotechnology & Genome Portfolio, Dynamic Energy Exploration & Production Portfolio, Dynamic Networking Portfolio, Dynamic Oil & Gas Services Portfolio and Dynamic Pharmaceuticals Portfolio participated in securities lending. Each Fund loaned portfolio securities having a market value up to one-third of each Fund’s total assets. Such loans are secured by cash collateral equal to no less than 102% (105% for international securities) 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 Schedules of Investments. Each Fund bears the risk of loss with respect to the investment of collateral. 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. When loaning securities, each Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to each 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 failed to return the securities. The securities loaned are subject to termination at the option of the borrower or each Fund. Upon termination, the borrower will return to each Fund the securities loaned and each Fund will return the collateral. 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. Each Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to each Fund. Some of these losses may be indemnified by the lending agent. Each 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, are included in Securities lending income on the Statements of Operations. The aggregate value of securities out on loan, if any, is shown on the Statements of Assets and Liabilities.
Note 3. Investment Advisory Agreement and Other Agreements
The Trust has entered into an Investment Advisory Agreement with the Adviser on behalf of each Fund, 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. Pursuant to that Investment Advisory Agreement, each Fund has agreed to pay the Adviser an annual fee of 0.50% of the Fund’s average daily net assets.
The Trust also has entered into an Amended and Restated Excess Expense Agreement (the “Expense Agreement”) with the Adviser on behalf of each Fund, 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, acquired fund fees and expenses, if any, and extraordinary expenses) of each Fund from exceeding 0.60% of the Fund’s average daily net assets per year (the “Expense Cap”), through at least August 31, 2017. Offering costs excluded from the Expense Cap for each Fund 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. Unless the Adviser continues the Expense Agreement, it will terminate on August 31, 2017. During its term, the Expense Agreement cannot be terminated or amended to increase the Expense Cap without approval of the Board of Trustees. The Adviser did not waive fees and/or pay Fund expenses during the period under this Expense Cap for Dynamic Biotechnology & Genome Portfolio, Dynamic Food & Beverage Portfolio, Dynamic Leisure and Entertainment Portfolio, Dynamic Media Portfolio and Dynamic Pharmaceuticals Portfolio.
Further, through August 31, 2018, the Adviser has contractually agreed to waive a portion of each Fund’s management fee in an amount equal to 100% of the net advisory fees an affiliate of the Adviser receives that are attributable to certain of the Fund’s investments in money market funds managed by that affiliate (excluding investments of cash collateral from securities lending). The Adviser cannot discontinue this waiver prior to its expiration. This agreement is not subject to recapture by the Adviser.
For the fiscal year ended April 30, 2016, the Adviser waived fees and/or paid Fund expenses for each Fund in the following amounts:
Dynamic Biotechnology & Genome Portfolio | $ | 598 | ||
Dynamic Building & Construction Portfolio | 28,809 | |||
Dynamic Energy Exploration & Production Portfolio | 15,721 | |||
Dynamic Food & Beverage Portfolio | 269 | |||
Dynamic Leisure and Entertainment Portfolio | 176 | |||
Dynamic Media Portfolio | 185 | |||
Dynamic Networking Portfolio | 62,297 | |||
Dynamic Oil & Gas Services Portfolio | 45,585 | |||
Dynamic Pharmaceuticals Portfolio | 9,427 | |||
Dynamic Retail Portfolio | 61,714 | |||
Dynamic Semiconductors Portfolio | 32,941 | |||
Dynamic Software Portfolio | 19,491 |
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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 following Funds, the amounts available for potential future recapture by the Adviser under the Expense Agreement and the expiration schedule at April 30, 2016 are as follows:
Total Potential Recapture Amounts | Potential Recapture Amounts Expiring | |||||||||||||||
04/30/17 | 04/30/18 | 04/30/19 | ||||||||||||||
Dynamic Building & Construction Portfolio | $ | 44,936 | $ | — | $ | 16,252 | $ | 28,684 | ||||||||
Dynamic Energy Exploration & Production Portfolio | 15,566 | — | — | 15,566 | ||||||||||||
Dynamic Networking Portfolio | 182,610 | 58,890 | 61,547 | 62,173 | ||||||||||||
Dynamic Oil & Gas Services Portfolio | 56,554 | — | 11,082 | 45,472 | ||||||||||||
Dynamic Retail Portfolio | 179,857 | 52,831 | 65,416 | 61,610 | ||||||||||||
Dynamic Semiconductors Portfolio | 156,597 | 69,191 | 54,742 | 32,664 | ||||||||||||
Dynamic Software Portfolio | 95,163 | 34,792 | 41,026 | 19,345 |
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 Funds are not charged any fees pursuant to the Distribution Agreement. The Distributor is an affiliate of the Adviser.
The Adviser has entered into a licensing agreement for each Fund with NYSE Group, Inc. (the “Licensor”). Each Underlying Index name trademark is owned by the Licensor. These trademarks have been licensed to the Adviser for use by 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 Licensor, and the Licensor makes no representation regarding the advisability of investing in any of the 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. Investments in Affiliates
The 1940 Act defines “affiliated person” to include issuers of which a fund holds 5% or more of the outstanding voting securities. The Fund listed below has not owned enough of the outstanding voting securities of the issuer to have control (as defined in the 1940 Act) of that issuer. The table below shows Dynamic Pharmaceuticals Portfolio’s transactions in, and earnings from, its investment in affiliates for the fiscal year ended April 30, 2016.
Dynamic Pharmaceuticals Portfolio
Value April 30, 2015 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain (Loss) | Value April 30, 2016 | Dividend Income | ||||||||||||||||||||||
BioDelivery Sciences International, Inc.* | $ | 34,829,025 | $ | 891,892 | $ | (34,778,800 | ) | $ | 30,975,998 | $ | (31,918,115 | ) | $ | — | $ | — | ||||||||||||
Heron Therapeutics, Inc. | — | 100,923,340 | (17,630,189 | ) | (25,070,208 | ) | (5,834,668 | ) | 52,388,275 | — | ||||||||||||||||||
Ligand Pharmaceuticals, Inc.** | 91,353,087 | 17,913,597 | (81,912,406 | ) | (4,326,899 | ) | 33,838,330 | 56,865,709 | — | |||||||||||||||||||
Omeros Corp.* | 62,468,093 | 20,684,822 | (58,439,533 | ) | 14,767,515 | (39,480,897 | ) | — | — | |||||||||||||||||||
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Total Investments in Affiliates | $ | 188,650,205 | $ | 140,413,651 | $ | (192,760,928 | ) | $ | 16,346,406 | $ | (43,395,350 | ) | $ | 109,253,984 | $ | — | ||||||||||||
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* | At April 30, 2016, this security was no longer held. |
** | At April 30, 2016, this security was no longer affiliated. |
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
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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 a 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, 2016, all of the securities in each Fund were valued based on Level 1 inputs (see the Schedules 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.
Investments in Securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Dynamic Biotechnology & Genome Portfolio | ||||||||||||||||
Equity Securities | $ | 302,406,104 | $ | — | $ | 338,011 | $ | 302,744,115 | ||||||||
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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, 2016 and 2015:
2016 | 2015 | |||||||||||||||||||||||
Ordinary Income | Long-Term Capital Gains | Return of Capital | Ordinary Income | Long-Term Capital Gains | Return of Capital | |||||||||||||||||||
Dynamic Biotechnology & Genome Portfolio | $ | 4,955,367 | $ | — | $ | — | $ | 2,402,943 | $ | — | $ | — | ||||||||||||
Dynamic Building & Construction Portfolio | 67,537 | — | — | 69,918 | — | — | ||||||||||||||||||
Dynamic Energy Exploration & Production Portfolio | 2,429,800 | — | — | 1,923,020 | — | — | ||||||||||||||||||
Dynamic Food & Beverage Portfolio | 2,995,165 | — | — | 4,913,796 | — | — | ||||||||||||||||||
Dynamic Leisure and Entertainment Portfolio | 444,265 | — | — | 1,429,697 | — | — | ||||||||||||||||||
Dynamic Media Portfolio | 1,074,222 | — | — | 1,051,471 | — | — | ||||||||||||||||||
Dynamic Networking Portfolio | — | — | — | — | — | — | ||||||||||||||||||
Dynamic Oil & Gas Services Portfolio | 831,786 | — | — | 1,024,494 | — | — | ||||||||||||||||||
Dynamic Pharmaceuticals Portfolio | 49,953,074 | 37,675,517 | — | 35,713,718 | 7,688,708 | — | ||||||||||||||||||
Dynamic Retail Portfolio | 182,321 | — | — | 205,959 | — | — | ||||||||||||||||||
Dynamic Semiconductors Portfolio | 100,980 | — | — | 415,087 | — | 146,696 | ||||||||||||||||||
Dynamic Software Portfolio | 83,133 | — | — | 49,038 | — | — |
Tax Components of Net Assets at Fiscal Year-End:
Undistributed Ordinary Income | Temporary Book/Tax Differences | Net Unrealized Appreciation (Depreciation)— Investment Securities | Capital Loss Carryforwards | Late-Year Ordinary/ Post-October Deferrals* | Shares of Beneficial Interest | Total Net Assets | ||||||||||||||||||||||
Dynamic Biotechnology & Genome Portfolio | $ | 63,920 | $ | (27,037 | ) | $ | (21,825,467 | ) | $ | (123,638,634 | ) | $ | (79,969,792 | ) | $ | 492,981,142 | $ | 267,584,132 | ||||||||||
Dynamic Building & Construction Portfolio | 66,379 | (16,569 | ) | 7,476,154 | (22,299,363 | ) | (1,694,104 | ) | 76,668,585 | 60,201,082 | ||||||||||||||||||
Dynamic Energy Exploration & Production Portfolio | 3,825,232 | (18,857 | ) | 1,159,015 | (79,796,750 | ) | (26,656,814 | ) | 176,169,904 | 74,681,730 | ||||||||||||||||||
Dynamic Food & Beverage Portfolio | 734,129 | (22,430 | ) | 12,558,655 | (54,787,695 | ) | (16,809,986 | ) | 358,782,422 | 300,455,095 |
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Undistributed Ordinary Income | Temporary Book/Tax Differences | Net Unrealized Appreciation (Depreciation)— Investment Securities | Capital Loss Carryforwards | Late-Year Ordinary/ Post-October Deferrals* | Shares of Beneficial Interest | Total Net Assets | ||||||||||||||||||||||
Dynamic Leisure and Entertainment Portfolio | $ | — | $ | (17,566 | ) | $ | 492,091 | $ | (32,309,361 | ) | $ | (7,714,632 | ) | $ | 182,303,758 | $ | 142,754,290 | |||||||||||
Dynamic Media Portfolio | — | (19,384 | ) | 2,538,395 | (67,850,753 | ) | (7,384,989 | ) | 163,177,705 | 90,460,974 | ||||||||||||||||||
Dynamic Networking Portfolio | 105,775 | (15,640 | ) | 1,186,343 | (33,900,575 | ) | (1,990,694 | ) | 54,804,110 | 20,189,319 | ||||||||||||||||||
Dynamic Oil & Gas Services Portfolio | 108,847 | (24,266 | ) | (8,749,364 | ) | (199,957,322 | ) | (14,826,752 | ) | 268,982,665 | 45,533,808 | |||||||||||||||||
Dynamic Pharmaceuticals Portfolio | 1,804,064 | (40,314 | ) | (102,020,917 | ) | (74,153,772 | ) | (14,115,057 | ) | 1,357,051,704 | 1,168,525,708 | |||||||||||||||||
Dynamic Retail Portfolio | 34,002 | (14,891 | ) | (444,144 | ) | (19,508,679 | ) | (2,077,244 | ) | 43,427,414 | 21,416,458 | |||||||||||||||||
Dynamic Semiconductors Portfolio | 153,738 | (15,669 | ) | (1,066,340 | ) | (38,319,995 | ) | (5,902,669 | ) | 94,149,786 | 48,998,851 | |||||||||||||||||
Dynamic Software Portfolio** | — | (16,285 | ) | 1,351,186 | (24,550,869 | ) | (2,828,676 | ) | 99,891,228 | 73,846,584 |
* | Includes net 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”), that are deemed to arise on the first business day of each Fund’s next taxable year. |
** | The Dynamic Software Portfolio incurred and will elect to defer Late-Year Ordinary Losses of $42,694, and Post-October Capital Losses of $2,785,982. |
Capital loss carryforwards are calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforwards actually available for the Funds to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. 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. Capital loss carryforwards with no expiration date 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 carryforwards in the future may be limited under Internal Revenue Code and related regulations based on the results of future transactions.
The following table presents available capital loss carryforwards and expiration dates for each Fund as of April 30, 2016.
Post-effective/ no expiration | ||||||||||||||||||||||||||||
2017 | 2018 | 2019 | Short-Term | Long-Term | Total* | Expired | ||||||||||||||||||||||
Dynamic Biotechnology & Genome Portfolio | $ | 34,286,844 | $ | 50,397,332 | $ | 12,898,182 | $ | 26,056,276 | $ | — | $ | 123,638,634 | $ | 15,818,255 | ||||||||||||||
Dynamic Building & Construction Portfolio | 2,843,349 | 3,001,058 | 6,653,613 | 8,635,189 | 1,166,154 | 22,299,363 | 742,893 | |||||||||||||||||||||
Dynamic Energy Exploration & Production Portfolio | 7,646,917 | 21,471,013 | 1,361,799 | 40,628,552 | 8,688,469 | 79,796,750 | 3,232,521 | |||||||||||||||||||||
Dynamic Food & Beverage Portfolio | 7,585,250 | 10,245,302 | — | 35,415,240 | 1,541,903 | 54,787,695 | 1,260,041 | |||||||||||||||||||||
Dynamic Leisure and Entertainment Portfolio | 2,895,936 | 2,889,449 | 2,356,106 | 24,167,870 | — | 32,309,361 | 2,111,801 | |||||||||||||||||||||
Dynamic Media Portfolio | 4,930,761 | 5,161,647 | 6,294,489 | 50,786,045 | 677,811 | 67,850,753 | 2,505,039 | |||||||||||||||||||||
Dynamic Networking Portfolio | 1,975,581 | 512,618 | 730,670 | 20,791,952 | 9,889,754 | 33,900,575 | 1,064,275 | |||||||||||||||||||||
Dynamic Oil & Gas Services Portfolio | 24,680,663 | 85,028,926 | 35,877,910 | 35,323,845 | 19,045,978 | 199,957,322 | 7,909,602 | |||||||||||||||||||||
Dynamic Pharmaceuticals Portfolio | — | — | — | 74,150,158 | 3,614 | 74,153,772 | — | |||||||||||||||||||||
Dynamic Retail Portfolio | 2,427,604 | 1,816,180 | 2,176,015 | 12,778,354 | 310,526 | 19,508,679 | 1,908,967 | |||||||||||||||||||||
Dynamic Semiconductors Portfolio | 14,001,359 | 10,902,954 | 2,120,823 | 10,315,328 | 979,531 | 38,319,995 | 10,196,415 | |||||||||||||||||||||
Dynamic Software Portfolio | 7,095,351 | 2,938,722 | 3,242,208 | 11,274,588 | — | 24,550,869 | 1,542,190 |
* | Capital loss carryforwards as of the date listed above are reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
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Note 7. Investment Transactions
For the fiscal year ended April 30, 2016, the cost of securities purchased and proceeds from sales of securities (other than short-term securities, U.S. Treasury obligations, money market funds and in-kind transactions, if any) were as follows:
Purchases | Sales | |||||||
Dynamic Biotechnology & Genome Portfolio | $ | 310,619,695 | $ | 310,508,144 | ||||
Dynamic Building & Construction Portfolio | 52,353,888 | 52,301,642 | ||||||
Dynamic Energy Exploration & Production Portfolio | 122,044,274 | 121,535,905 | ||||||
Dynamic Food & Beverage Portfolio | 282,171,630 | 278,909,800 | ||||||
Dynamic Leisure and Entertainment Portfolio | 256,942,207 | 257,536,020 | ||||||
Dynamic Media Portfolio | 152,020,389 | 152,787,642 | ||||||
Dynamic Networking Portfolio | 21,726,502 | 21,381,952 | ||||||
Dynamic Oil & Gas Services Portfolio | 45,907,580 | 45,855,591 | ||||||
Dynamic Pharmaceuticals Portfolio | 427,663,123 | 505,173,457 | ||||||
Dynamic Retail Portfolio | 32,233,029 | 33,436,161 | ||||||
Dynamic Semiconductors Portfolio | 68,097,787 | 67,729,963 | ||||||
Dynamic Software Portfolio | 117,671,727 | 116,596,975 |
For the fiscal year ended April 30, 2016, in-kind transactions associated with creations and redemptions were as follows:
Cost of Securities Received | Value of Securities Delivered | |||||||
Dynamic Biotechnology & Genome Portfolio | $ | 91,211,672 | $ | 218,393,109 | ||||
Dynamic Building & Construction Portfolio | 34,219,715 | 33,245,953 | ||||||
Dynamic Energy Exploration & Production Portfolio | 49,519,083 | 53,162,567 | ||||||
Dynamic Food & Beverage Portfolio | 341,766,540 | 318,878,358 | ||||||
Dynamic Leisure and Entertainment Portfolio | 158,280,196 | 198,913,285 | ||||||
Dynamic Media Portfolio | 125,188,120 | 166,659,773 | ||||||
Dynamic Networking Portfolio | 9,058,916 | 14,379,020 | ||||||
Dynamic Oil & Gas Services Portfolio | 15,126,070 | 20,034,712 | ||||||
Dynamic Pharmaceuticals Portfolio | 402,197,823 | 848,794,544 | ||||||
Dynamic Retail Portfolio | 18,325,304 | 33,025,174 | ||||||
Dynamic Semiconductors Portfolio | 43,251,740 | 65,073,999 | ||||||
Dynamic Software Portfolio | 98,910,115 | 78,220,568 |
Gains (losses) on in-kind transactions are generally not considered taxable gains (losses) for federal income tax purposes.
At April 30, 2016, the aggregate cost and the net unrealized appreciation (depreciation) of investments for tax purposes were as follows:
Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation (Depreciation) | Cost | |||||||||||||
Dynamic Biotechnology & Genome Portfolio | $ | 16,553,926 | $ | (38,379,393 | ) | $ | (21,825,467 | ) | $ | 324,569,582 | ||||||
Dynamic Building & Construction Portfolio | 8,110,255 | (634,101 | ) | 7,476,154 | 52,780,206 | |||||||||||
Dynamic Energy Exploration & Production Portfolio | 13,798,242 | (12,639,227 | ) | 1,159,015 | 73,703,915 | |||||||||||
Dynamic Food & Beverage Portfolio | 20,347,217 | (7,788,562 | ) | 12,558,655 | 288,067,918 | |||||||||||
Dynamic Leisure and Entertainment Portfolio | 9,847,550 | (9,355,459 | ) | 492,091 | 142,361,012 | |||||||||||
Dynamic Media Portfolio | 6,727,050 | (4,188,655 | ) | 2,538,395 | 88,016,434 | |||||||||||
Dynamic Networking Portfolio | 2,091,065 | (904,722 | ) | 1,186,343 | 19,803,316 | |||||||||||
Dynamic Oil & Gas Services Portfolio | 1,697,620 | (10,446,984 | ) | (8,749,364 | ) | 54,423,382 | ||||||||||
Dynamic Pharmaceuticals Portfolio | 98,007,447 | (200,028,364 | ) | (102,020,917 | ) | 1,372,714,269 | ||||||||||
Dynamic Retail Portfolio | 862,320 | (1,306,464 | ) | (444,144 | ) | 21,904,436 | ||||||||||
Dynamic Semiconductors Portfolio | 1,595,032 | (2,661,372 | ) | (1,066,340 | ) | 50,119,499 | ||||||||||
Dynamic Software Portfolio | 3,308,653 | (1,957,467 | ) | 1,351,186 | 72,550,492 |
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Note 8. Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of in-kind transactions, expired capital loss carryforwards and distributions on April 30, 2016, 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, 2016, the reclassifications were as follows:
Undistributed Net Investment Income (Loss) | Undistributed Net Realized Gain (Loss) | Shares of Beneficial Interest | ||||||||||
Dynamic Biotechnology & Genome Portfolio | $ | — | $ | (24,529,149 | ) | $ | 24,529,149 | |||||
Dynamic Building & Construction Portfolio | — | (2,472,621 | ) | 2,472,621 | ||||||||
Dynamic Energy Exploration & Production Portfolio | 3,736,263 | (1,825,940 | ) | (1,910,323 | ) | |||||||
Dynamic Food & Beverage Portfolio | — | (33,010,829 | ) | 33,010,829 | ||||||||
Dynamic Leisure and Entertainment Portfolio | (116,365 | ) | (13,530,946 | ) | 13,647,311 | |||||||
Dynamic Media Portfolio | 374,091 | (8,975,476 | ) | 8,601,385 | ||||||||
Dynamic Networking Portfolio | — | (2,150,689 | ) | 2,150,689 | ||||||||
Dynamic Oil & Gas Services Portfolio | 30,933 | 7,981,506 | (8,012,439 | ) | ||||||||
Dynamic Pharmaceuticals Portfolio | — | (232,398,978 | ) | 232,398,978 | ||||||||
Dynamic Retail Portfolio | — | (1,605,777 | ) | 1,605,777 | ||||||||
Dynamic Semiconductors Portfolio | — | 5,822,546 | (5,822,546 | ) | ||||||||
Dynamic Software Portfolio | 101,524 | (3,077,304 | ) | 2,975,780 |
Note 9. Trustees’ and Officer’s Fees
Trustees’ and Officer’s Fees include amounts accrued by the Funds to pay remuneration to the Independent Trustees and an Officer of the Trust. The Trustee who is an “interested person” of the Trust does 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. Obligations under the Plan represent unsecured claims against the general assets of the Funds.
Note 10. Capital
Shares are created and redeemed by each Fund only in Creation Units of 50,000 Shares. Only Authorized Participants are permitted to purchase or redeem Creation Units from the Funds. Such transactions are principally permitted in exchange for Deposit Securities, with a balancing cash component to equate the transaction to the NAV per Share of a Fund of the Trust on the transaction date. However, for all Funds, cash in an amount equivalent to the value of certain securities may be substituted, generally when the securities are not available in sufficient quantity for delivery, not eligible for trading by the Authorized Participant or as a result of other market circumstances.
To the extent that the Funds permit transactions in exchange for Deposit Securities, each Fund may issue Shares in advance of receipt of Deposit Securities subject to various conditions, including a requirement to maintain on deposit with the Trust cash at least equal to 105% of the market value of the missing Deposit Securities. In accordance with the Trust’s Participant Agreement, Creation Units will be issued to an Authorized Participant, notwithstanding the fact that the corresponding Deposit Securities have not been received in part or in whole, in reliance on the undertaking of the Authorized Participant to deliver the missing Deposit Securities as soon as possible, which undertaking shall be secured by the Authorized Participant’s delivery and maintenance of collateral consisting of cash in the form of U.S. dollars in immediately available funds having a value (marked-to-market daily) at least equal to 105%, which the Adviser may change from time to time, of the value of the missing Deposit Securities.
Transactions in each Fund’s Shares are disclosed in detail in 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.
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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 Biotechnology & Genome Portfolio, PowerShares Dynamic Building & Construction Portfolio, PowerShares Dynamic Energy Exploration & Production Portfolio, PowerShares Dynamic Food & Beverage 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, 2016, the results of each of their operations for the year then ended, the changes 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, 2016 by correspondence with the custodian and brokers, and the application of alternative auditing procedures where confirmations of security purchases have not been received, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Chicago, IL
June 23, 2016
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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, 2016.
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, 2015 | Ending Account Value April 30, 2016 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period(1) | |||||||||||||
PowerShares Dynamic Biotechnology & Genome Portfolio (PBE) | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 791.29 | 0.60 | % | $ | 2.67 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.88 | 0.60 | 3.02 | ||||||||||||
PowerShares Dynamic Building & Construction Portfolio (PKB) | ||||||||||||||||
Actual | 1,000.00 | 1,043.03 | 0.63 | 3.20 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.73 | 0.63 | 3.17 | ||||||||||||
PowerShares Dynamic Energy Exploration & Production Portfolio (PXE) | ||||||||||||||||
Actual | 1,000.00 | 885.17 | 0.63 | 2.95 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.73 | 0.63 | 3.17 | ||||||||||||
PowerShares Dynamic Food & Beverage Portfolio (PBJ) | ||||||||||||||||
Actual | 1,000.00 | 966.36 | 0.58 | 2.84 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.98 | 0.58 | 2.92 | ||||||||||||
PowerShares Dynamic Leisure and Entertainment Portfolio (PEJ) | ||||||||||||||||
Actual | 1,000.00 | 929.69 | 0.59 | 2.83 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.93 | 0.59 | 2.97 | ||||||||||||
PowerShares Dynamic Media Portfolio (PBS) | ||||||||||||||||
Actual | 1,000.00 | 956.75 | 0.62 | 3.02 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.78 | 0.62 | 3.12 | ||||||||||||
PowerShares Dynamic Networking Portfolio (PXQ) | ||||||||||||||||
Actual | 1,000.00 | 929.82 | 0.63 | 3.02 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.73 | 0.63 | 3.17 | ||||||||||||
PowerShares Dynamic Oil & Gas Services Portfolio (PXJ) | ||||||||||||||||
Actual | 1,000.00 | 970.52 | 0.63 | 3.09 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.73 | 0.63 | 3.17 |
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Fees and Expenses (continued)
Beginning Account Value November 1, 2015 | Ending Account Value April 30, 2016 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period(1) | |||||||||||||
PowerShares Dynamic Pharmaceuticals Portfolio (PJP) | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 928.17 | 0.58 | % | $ | 2.78 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | �� | 1,021.98 | 0.58 | 2.92 | |||||||||||
PowerShares Dynamic Retail Portfolio (PMR) | ||||||||||||||||
Actual | 1,000.00 | 949.46 | 0.63 | 3.05 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.73 | 0.63 | 3.17 | ||||||||||||
PowerShares Dynamic Semiconductors Portfolio (PSI) | ||||||||||||||||
Actual | 1,000.00 | 971.28 | 0.63 | 3.09 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.73 | 0.63 | 3.17 | ||||||||||||
PowerShares Dynamic Software Portfolio (PSJ) | ||||||||||||||||
Actual | 1,000.00 | 974.61 | 0.63 | 3.09 | ||||||||||||
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, 2016. Expenses are calculated by multiplying the Fund’s annualized expense ratio by the average account value for the period, then multiplying the results by 182/366. Expense ratios for the most resent six-month period may differ from expense ratios based on the annualized data in the Financial Highlights. |
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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, 2016:
Qualified Dividend Income* | Dividends-Received Deduction* | |||||||||
PowerShares Dynamic Biotechnology & Genome Portfolio | 30 | % | 30 | % | ||||||
PowerShares Dynamic Building & Construction Portfolio | 100 | % | 100 | % | ||||||
PowerShares Dynamic Energy Exploration & Production Portfolio | 47 | % | 47 | % | ||||||
PowerShares Dynamic Food & Beverage Portfolio | 100 | % | 100 | % | ||||||
PowerShares Dynamic Leisure and Entertainment Portfolio | 100 | % | 100 | % | ||||||
PowerShares Dynamic Media Portfolio | 100 | % | 100 | % | ||||||
PowerShares Dynamic Networking Portfolio | 0 | % | 0 | % | ||||||
PowerShares Dynamic Oil & Gas Services Portfolio | 100 | % | 73 | % | ||||||
PowerShares Dynamic Pharmaceuticals Portfolio | 31 | % | 31 | % | ||||||
PowerShares Dynamic Retail Portfolio | 100 | % | 100 | % | ||||||
PowerShares Dynamic Semiconductors Portfolio | 100 | % | 100 | % | ||||||
PowerShares Dynamic Software Portfolio | 100 | % | 100 | % |
* | The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year. |
PowerShares Dynamic Pharmaceuticals Portfolio designates $37,675,517 as a long-term capital gain distribution for the year ended April 30, 2016.
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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, 2016.
Name, Address and Year of Birth 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—1958 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Chairman of the Nominating and Governance Committee and Trustee | Chairman of the Nominating and Governance Committee and 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). | 124 | None | |||||
Todd J. Barre—1957 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Trustee | Since 2010 | Assistant Professor of Business, Trinity Christian College (2010-2016); 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. | 124 | None | |||||
Marc M. Kole—1960 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Chairman of the Audit Committee and Trustee | Chairman of the Audit Committee since 2008; and Trustee since 2006 | Senior Director of Finance, By The Hand Club for Kids (2015-Present); formerly: Chief Financial Officer, Hope Network (social services) (2008-2012); Assistant Vice President and Controller, Priority Health (health insurance) (2005-2008); Senior Vice President of Finance, United Healthcare (2004-2005); Chief Accounting Officer, Senior Vice President of Finance, Oxford Health Plans (2000-2004); Audit Partner, Arthur Andersen LLP (1996-2000). | 124 | 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, 2016, the “Fund Family” consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 71 portfolios advised by the Adviser. |
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Trustees and Officers (continued)
Name, Address and Year of Birth 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 | |||||
Yung Bong Lim—1964 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Chairman of the Investment Oversight Committee and Trustee | Chairman of the Investment Oversight Committee since 2014; Trustee since 2013 | Managing Partner, Residential Dynamics Group LLC (2008-Present); formerly, Managing Director, Citadel Investment Group, L.L.C. (1999-2007). | 124 | None | |||||
Philip M. Nussbaum—1961 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Trustee | Since 2003 | Chairman, Performance Trust Capital Partners (2004-Present). | 124 | None | |||||
Gary R. Wicker—1961 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Trustee | Since 2013 | Senior Vice President of Global Finance and Chief Financial Officer at RBC Ministries (publishing company) (2013-Present); formerly, Executive Vice President and Chief Financial Officer, Zondervan Publishing (a division of Harper Collins/NewsCorp) (2007-2012); Senior Vice President and Group Controller (2005-2006), Senior Vice President and Chief Financial Officer (2003-2004), Chief Financial Officer (2001-2003), Vice President, Finance and Controller (1999-2001) and Assistant Controller (1997-1999), divisions of The Thomson Corporation (information services provider). | 124 | None | |||||
Donald H. Wilson—1959 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Chairman of the Board and Trustee | Chairman since 2012; Trustee since 2006 | Chairman and Chief Executive Officer, Stone Pillar Advisors, Ltd. (2010-Present); formerly, Chairman, President and Chief Executive Officer, Community Financial Shares, Inc. and Community Bank—Wheaton/Glen Ellyn (subsidiary) (2013-2015); 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). | 124 | 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, 2016, the “Fund Family” consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 71 portfolios advised by the Adviser. |
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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 Year of Birth of Non-Independent Trustees | Position(s) Held with Trust | Term of Office and Length of Time Served* | Principal Past 5 Years | Number of Portfolios in Fund Complex** Overseen by Non-Independent Trustee | Other Directorships Held by Non-Independent Trustees During the Past 5 Years | |||||
Kevin M. Carome—1956 Invesco Ltd. Two Peachtree Pointe, 1555 Peachtree St., N.E., Suite 1800 Atlanta, GA 30309 | Trustee | Since 2010 | Senior Managing Director, Secretary and General Counsel, Invesco Ltd. (2007-Present); Director, Invesco Advisers, Inc. (2009-Present); Director, Invesco Finance PLC, and Invesco Holding Company Limited; Director and Executive Vice President, Invesco Finance, Inc., Invesco Group Services, Inc., Invesco Investments (Bermuda) Ltd., Invesco North American Holdings, Inc., IVZ, Inc. and Invesco Asset Management (Bermuda) Ltd.; Manager, Horizon Flight Works LLC; Director and Secretary, IVZ Bahamas Private Limited; formerly, Director, INVESCO Funds Group, Inc., Senior Vice President, Secretary and General Counsel, Invesco Advisers, 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. | 124 | 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, 2016, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 71 portfolios advised by the Adviser. |
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Trustees and Officers (continued)
Name, Address and Year of Birth of Executive Officers | Position(s) Held with Trust | Length of Time Served* | Principal Occupation(s) During Past 5 Years | |||
Daniel E. Draper—1968 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | President and Principal Executive Officer | Since 2015 | President and Principal Executive Officer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2015-Present); Chief Executive Officer (2016-Present) and Managing Director (2013-Present), Invesco PowerShares Capital Management LLC; Senior Vice President, Invesco Distributors, Inc. (2014-Present); formerly, Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-2015) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-2015); Managing Director, Credit Suisse Asset Management (2010-2013) and Lyxor Asset Management/Societe Generale (2007-2010). | |||
Steven M. Hill—1964 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Vice President and Treasurer | Since 2013 | Vice President and Treasurer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Global ETF Administration, Invesco PowerShares Capital Management LLC (2011-Present); Principal Financial and Accounting Officer—Investment Pools, Invesco PowerShares Capital Management LLC (2015-Present); formerly, Senior Managing Director and Chief Financial Officer, Destra Capital Management LLC and its subsidiaries (2010-2011); Chief Financial Officer, Destra Investment Trust and Destra Investment Trust II (2010-2011); Senior Managing Director, Claymore Securities, Inc. (2003-2010); and Chief Financial Officer, Claymore sponsored mutual funds (2003-2010). | |||
Peter Hubbard—1981 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Vice President | Since 2009 | Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2009-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Vice President and Director of Portfolio Management, Invesco PowerShares Capital Management LLC (2010-Present); formerly, Vice President of Portfolio Management, Invesco PowerShares Capital Management LLC (2008-2010); 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). | |||
Christopher Joe—1969 Invesco PowerShares Capital Management LLC 11 Greenway Plaza, Suite 1000 Houston, TX 77046-1173 | Chief Compliance Officer | Since 2012 | Chief Compliance Officer of Invesco PowerShares Capital Management LLC (2015-Present); Chief Compliance Officer of PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2012-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); formerly, Chief Compliance Officer, Invesco Investment Advisers, LLC (registered investment adviser) (2010–2013), U.S. Compliance Director, Invesco, Ltd. (2006-2014) and Deputy Chief Compliance Officer of Invesco Advisers, Inc. (2014-2015). |
* | 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. |
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Trustees and Officers (continued)
Name, Address and Year of Birth of Executive Officers | Position(s) Held with Trust | Length of Time Served* | Principal Occupation(s) During Past 5 Years | |||
Sheri Morris—1964 Invesco Management Group, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046 | Vice President | Since 2012 | President, Principal Executive Officer and Treasurer, The Invesco Funds (2016-Present); Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) (2009-Present) and Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2012-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); formerly, Vice President, Treasurer and Principal Financial Officer, The Invesco Funds (2008-2016); 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 (2011-2013); Vice President, Invesco Aim 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—1974 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Secretary | Since 2011 | Secretary, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2011-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Legal (2010-Present) and Secretary (2015-Present), 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). | |||
Rudolf E. Reitmann—1971 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Vice President | Since 2013 | Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Global Exchange Traded Funds Services, Invesco PowerShares Capital Management LLC (2013-Present). | |||
David Warren—1957 Invesco Canada Ltd. 5140 Yonge Street, Suite 800 Toronto, Ontario M2N 6X7 | Vice President | Since 2009 | Vice President, 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 (2009-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Managing Director—Chief Administrative Officer, Americas, Invesco PowerShares Capital Management LLC; Senior Vice President, Invesco Advisers, Inc. (2009-Present); Director, Invesco Inc. (2009-Present); Senior Vice President, Invesco Management Group, Inc. (2007-Present); Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (formerly, Invesco Trimark Ltd.); Chief Administrative Officer, North American Retail, Invesco Ltd. (2007-Present); Director, Invesco Corporate Class Inc. (2014-Present); Director, Invesco Global Direct Real Estate Feeder GP Ltd. (2015-Present); Director, Invesco Canada Holdings Inc. (2002-Present); Director, Invesco Financial Services Ltd. / Services Financiers Invesco Ltée and Trimark Investments Ltd./Placements Trimark Ltée (2014-Present); Director, Invesco IP Holdings (Canada) Ltd. (2016-Present); Director, Invesco Global Direct Real Estate GP Ltd. (2015-Present); formerly, Executive Vice President and Chief Financial Officer, Invesco Inc. (2009-2015); Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (formerly, Invesco Trimark Ltd.) (2000-2011). |
* | 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. |
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Trustees and Officers (continued)
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.
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Board Considerations Regarding Continuation of Investment Advisory Agreement
At a meeting held on April 14, 2016, 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 51 series (each, a “Fund” and collectively, the “Funds”):
PowerShares Aerospace & Defense Portfolio
PowerShares BuyBack Achievers™ Portfolio
PowerShares Cleantech™ Portfolio
PowerShares Dividend AchieversTM Portfolio
PowerShares DWA Momentum Portfolio
PowerShares DWA Basic Materials Momentum Portfolio
PowerShares DWA Consumer Cyclicals Momentum Portfolio
PowerShares DWA Consumer Staples Momentum Portfolio
PowerShares DWA Energy Momentum Portfolio
PowerShares DWA Financial Momentum Portfolio
PowerShares DWA Healthcare Momentum Portfolio
PowerShares DWA Industrials Momentum Portfolio
PowerShares DWA NASDAQ Momentum Portfolio
PowerShares DWA Technology Momentum Portfolio
PowerShares DWA Utilities Momentum Portfolio
PowerShares Dynamic Biotechnology & Genome Portfolio
PowerShares Dynamic Building & Construction Portfolio
PowerShares Dynamic Energy Exploration & Production Portfolio
PowerShares Dynamic Food & Beverage Portfolio
PowerShares Dynamic Large Cap Growth Portfolio
PowerShares Dynamic Large Cap Value Portfolio
PowerShares Dynamic Leisure and Entertainment Portfolio
PowerShares Dynamic Market Portfolio
PowerShares Dynamic Media Portfolio
PowerShares Dynamic Networking Portfolio
PowerShares Dynamic Oil & Gas Services Portfolio
PowerShares Dynamic Pharmaceuticals Portfolio
PowerShares Dynamic Retail Portfolio
PowerShares Dynamic Semiconductors Portfolio
PowerShares Dynamic Software Portfolio
PowerShares Financial Preferred Portfolio
PowerShares FTSE RAFI US 1000 Portfolio
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio
PowerShares Global Listed Private Equity Portfolio
PowerShares Golden Dragon China Portfolio
PowerShares High Yield Equity Dividend AchieversTM Portfolio
PowerShares International Dividend AchieversTM Portfolio
PowerShares Russell Top 200 Equal Weight Portfolio
PowerShares Russell Top 200 Pure Growth Portfolio
PowerShares Russell Top 200 Pure Value Portfolio
PowerShares Russell Midcap Equal Weight Portfolio
PowerShares Russell Midcap Pure Growth Portfolio
PowerShares Russell Midcap Pure Value Portfolio
PowerShares Russell 2000 Equal Weight Portfolio
PowerShares Russell 2000 Pure Growth Portfolio
PowerShares Russell 2000 Pure Value Portfolio
PowerShares S&P 500® 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 for each Fund, (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 to and amounts paid by other registered investment companies and (vii) any benefits realized by the Adviser from its relationship with each Fund.
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 staffing, including operational support 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 and/or oversight of execution of portfolio transactions on behalf of the Funds. The Trustees also reviewed information on the performance of the Funds and their underlying indexes for the one-year, three-year, five-year, ten-year and since-inception periods ended December 31, 2015, as applicable, including reports for each of those periods 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 certain Funds and their underlying indexes. In reviewing the tracking error reports, the Trustees considered information provided by Ibbotson Associates, a consultant to the Independent Trustees, with respect to general expected tracking error ranges and various explanations for any tracking error. The Trustees noted that for each applicable period the correlation and tracking error for
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Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)
each Fund was within the targeted range set forth in the Trust’s registration statement and 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, effort and resources 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 advisory fee and net expense ratio, as compared to information compiled by the Adviser from Lipper Inc. databases on the advisory fees and net expense ratios of comparable exchange-traded funds (“ETFs”), open-end (non-ETF) index funds and open-end (non-ETF) 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 Russell Top 200 Equal Weight Portfolio, PowerShares Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Equal Weight Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Equal Weight Portfolio, PowerShares Russell 2000 Pure Growth Portfolio, PowerShares Russell 2000 Pure Value Portfolio and PowerShares S&P 500® Quality 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; |
● | 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 Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Pure Growth, Portfolio, PowerShares Russell 2000 Pure Value Portfolio and PowerShares S&P 500® Quality Portfolio; and |
● | 0.25% of the Fund’s average daily net assets for each of PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight Portfolio (The net advisory fees, after giving effect to the Expense Caps below, were 0.01%, -0.05% and -0.39% and, respectively, for PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight Portfolio.). |
The Trustees also noted that the Adviser has agreed to waive a portion of its advisory fee and/or pay expenses (an “Expense Cap”) to the extent necessary to prevent the annual operating expenses of each Fund from exceeding the percentage of that Fund’s average daily net assets, at least until August 31, 2017, 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 DWA NASDAQ Momentum 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; |
● | 0.39%, 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 Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Pure Growth Portfolio and PowerShares Russell 2000 Pure Value Portfolio; |
● | 0.29%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for PowerShares S&P 500® Quality Portfolio; |
● | 0.25%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses for PowerShares Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight Portfolio; |
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Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)
● | 0.60%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for PowerShares DWA Basic Materials Momentum Portfolio, PowerShares DWA Consumer Cyclicals Momentum Portfolio, PowerShares DWA Consumer Staples Momentum Portfolio, PowerShares DWA Energy Momentum Portfolio, PowerShares DWA Financial Momentum Portfolio, PowerShares DWA Healthcare Momentum Portfolio, PowerShares DWA Industrials Momentum Portfolio, PowerShares DWA Technology Momentum Portfolio and PowerShares DWA Utilities Momentum Portfolio; 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 serve as the investment adviser to any clients, other than other ETFs also overseen by the Trustees, with comparable investment strategies as the Funds, but that the Adviser provides sub-advisory services to clients with comparable investment strategies as certain of the Funds. The Trustees further noted the Adviser’s explanation with respect to the sub-advisory fees it receives for such services in comparison to the advisory fees charged to the Funds. The Trustees noted that the advisory fees for certain Funds were equal to or lower than the median advisory fees of their ETF and open-end index peer funds as illustrated in the table below. The Trustees also noted that the advisory fees for all of the Funds were lower than the median advisory fees of their open-end actively-managed peer funds.
PowerShares Fund | Equal to/Lower than ETF Median | Equal to/Lower than Open-End Index Fund Median* | Equal to/Lower than Open-End Active Fund Median | |||
PowerShares Aerospace & Defense Portfolio | X | |||||
PowerShares Buyback Achievers Portfolio | X | |||||
PowerShares Cleantech Portfolio | X | |||||
PowerShares Dividend Achievers Portfolio | X | X | ||||
PowerShares DWA Basic Materials Momentum Portfolio | X | |||||
PowerShares DWA Consumer Cyclicals Momentum Portfolio | X | |||||
PowerShares DWA Consumer Staples Momentum Portfolio | X | |||||
PowerShares DWA Energy Momentum Portfolio | X | |||||
PowerShares DWA Financial Momentum Portfolio | X | |||||
PowerShares DWA Healthcare Momentum Portfolio | X | |||||
PowerShares DWA Industrials Momentum Portfolio | X | |||||
PowerShares DWA Momentum Portfolio | X | |||||
PowerShares DWA NASDAQ Momentum Portfolio | X | |||||
PowerShares DWA Technology Momentum Portfolio | X | |||||
PowerShares DWA Utilities Momentum Portfolio | X | |||||
PowerShares Dynamic Biotechnology & Genome Portfolio | X | |||||
PowerShares Dynamic Building & Construction Portfolio | X | |||||
PowerShares Dynamic Energy Exploration & Production Portfolio | X | |||||
PowerShares Dynamic Food & Beverage Portfolio | X | |||||
PowerShares Dynamic Large Cap Growth Portfolio | X | |||||
PowerShares Dynamic Large Cap Value Portfolio | X | |||||
PowerShares Dynamic Leisure and Entertainment Portfolio | X | |||||
PowerShares Dynamic Market Portfolio | X | |||||
PowerShares Dynamic Media Portfolio | X | |||||
PowerShares Dynamic Networking Portfolio | X | |||||
PowerShares Dynamic Oil & Gas Services Portfolio | X | |||||
PowerShares Dynamic Pharmaceuticals Portfolio | X | |||||
PowerShares Dynamic Retail Portfolio | X |
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Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)
PowerShares Fund | Equal to/Lower than ETF Median | Equal to/Lower than Open-End Index Fund Median* | Equal to/Lower than Open-End Active Fund Median | |||
PowerShares Dynamic Semiconductors Portfolio | X | |||||
PowerShares Dynamic Software Portfolio | X | |||||
PowerShares Financial Preferred Portfolio | N/A | X | ||||
PowerShares FTSE RAFI US 1000 Portfolio | X | |||||
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio | X | X | ||||
PowerShares Russell Top 200 Equal Weight Portfolio | X | X | ||||
PowerShares Russell Top 200 Pure Growth Portfolio | X | |||||
PowerShares Russell Top 200 Pure Value Portfolio | X | |||||
PowerShares Russell Midcap Equal Weight Portfolio | X | |||||
PowerShares Russell Midcap Pure Growth Portfolio | X | X | X | |||
PowerShares Russell Midcap Pure Value Portfolio | X | X | ||||
PowerShares Russell 2000 Equal Weight Portfolio | X | X | ||||
PowerShares Russell 2000 Pure Growth Portfolio | X | X | ||||
PowerShares Russell 2000 Pure Value Portfolio | X | |||||
PowerShares Global Listed Private Equity Portfolio | N/A | X | ||||
PowerShares Golden Dragon China Portfolio | X | N/A | X | |||
PowerShares High Yield Equity Dividend Achievers Portfolio | X | X | ||||
PowerShares International Dividend Achievers Portfolio | X | X | X | |||
PowerShares S&P 500 Quality Portfolio | X | |||||
PowerShares Water Resources Portfolio | X | |||||
PowerShares WilderHill Clean Energy Portfolio | X | |||||
PowerShares WilderHill Progressive Energy Portfolio | X | |||||
PowerShares Zacks Micro Cap Portfolio | X |
* | The information provided by the Adviser indicated that certain Funds did not have open-end index fund peers. Those Funds have been designated with an “N/A” for not available. |
The Trustees determined that the advisory fees were reasonable, noting the nature of the indexes, the distinguishing factors of the Funds, and the administrative, operational and management oversight costs for the Adviser. The Trustees noted that the net expense ratios for certain Funds were equal to or lower than the median net expense ratios of their ETF and open-end index peer funds as illustrated in the table below. The Trustees also noted that the net expense ratios for all of the Funds were lower than the median net expense ratios of their open-end actively-managed peer funds.
PowerShares Fund | Equal to/Lower than ETF Median | Equal to/Lower than Open-End Index Fund Median | Equal to/Lower than Open-End Active Fund Median | |||
PowerShares Aerospace & Defense Portfolio | X | |||||
PowerShares Buyback Achievers Portfolio | X | |||||
PowerShares Cleantech Portfolio | X | |||||
PowerShares Dividend Achievers Portfolio | X | X | ||||
PowerShares DWA Basic Materials Momentum Portfolio | X | |||||
PowerShares DWA Consumer Cyclicals Momentum Portfolio | X | |||||
PowerShares DWA Consumer Staples Momentum Portfolio | X |
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Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)
PowerShares Fund | Equal to/Lower than ETF Median | Equal to/Lower than Open-End Index Fund Median | Equal to/Lower than Open-End Active Fund Median | |||
PowerShares DWA Energy Momentum Portfolio | X | |||||
PowerShares DWA Financial Momentum Portfolio | X | |||||
PowerShares DWA Healthcare Momentum Portfolio | X | |||||
PowerShares DWA Industrials Momentum Portfolio | X | |||||
PowerShares DWA Momentum Portfolio | X | X | ||||
PowerShares DWA NASDAQ Momentum Portfolio | X | X | ||||
PowerShares DWA Technology Momentum Portfolio | X | |||||
PowerShares DWA Utilities Momentum Portfolio | X | |||||
PowerShares Dynamic Biotechnology & Genome Portfolio | X | |||||
PowerShares Dynamic Building & Construction Portfolio | X | |||||
PowerShares Dynamic Energy Exploration & Production Portfolio | X | |||||
PowerShares Dynamic Food & Beverage Portfolio | X | |||||
PowerShares Dynamic Large Cap Growth Portfolio | X | |||||
PowerShares Dynamic Large Cap Value Portfolio | X | |||||
PowerShares Dynamic Leisure and Entertainment Portfolio | X | |||||
PowerShares Dynamic Market Portfolio | X | |||||
PowerShares Dynamic Media Portfolio | X | |||||
PowerShares Dynamic Networking Portfolio | X | |||||
PowerShares Dynamic Oil & Gas Services Portfolio | X | |||||
PowerShares Dynamic Pharmaceuticals Portfolio | X | |||||
PowerShares Dynamic Retail Portfolio | X | |||||
PowerShares Dynamic Semiconductors Portfolio | X | |||||
PowerShares Dynamic Software Portfolio | X | |||||
PowerShares Financial Preferred Portfolio | N/A | X | ||||
PowerShares FTSE RAFI US 1000 Portfolio | X | X | X | |||
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio | X | X | X | |||
PowerShares Russell Top 200 Equal Weight Portfolio | X | X | ||||
PowerShares Russell Top 200 Pure Growth Portfolio | X | X | ||||
PowerShares Russell Top 200 Pure Value Portfolio | X | |||||
PowerShares Russell Midcap Equal Weight Portfolio | X | X | ||||
PowerShares Russell Midcap Pure Growth Portfolio | X | X | X | |||
PowerShares Russell Midcap Pure Value Portfolio | X | X | ||||
PowerShares Russell 2000 Equal Weight Portfolio | X | X | X | |||
PowerShares Russell 2000 Pure Growth Portfolio | X | X | ||||
PowerShares Russell 2000 Pure Value Portfolio | X | X | ||||
PowerShares Global Listed Private Equity Portfolio | N/A | X | ||||
PowerShares Golden Dragon China Portfolio | X | N/A | X | |||
PowerShares High Yield Equity Dividend Achievers Portfolio | X | X | ||||
PowerShares International Dividend Achievers Portfolio | X | X | X | |||
PowerShares S&P 500 Quality Portfolio | X | X | X | |||
PowerShares Water Resources Portfolio | X |
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Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)
PowerShares Fund | Equal to/Lower than ETF Median | Equal to/Lower than Open-End Index Fund Median | Equal to/Lower than Open-End Active Fund Median | |||
PowerShares WilderHill Clean Energy Portfolio | X | |||||
PowerShares WilderHill Progressive Energy Portfolio | X | |||||
PowerShares Zacks Micro Cap Portfolio | X |
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 overall profitability as well as the estimated profitability to the Adviser from its relationship to each Fund. The Trustees concluded that the overall and estimated profitability to the Adviser 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 Cap agreed to by the Adviser. 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 DWA NASDAQ Momentum 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.
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.
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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 each Fund 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.
Frequency Distribution of Discounts and Premiums
A table showing the number of days the market price of each Fund’s shares was greater than the Fund’s net asset value, and the number of days it was less than the Fund’s net asset value (i.e., premium or discount) for the most recently completed calendar year, and the calendar quarters since that year end (or the life of the Fund, if shorter) may be found at the Fund’s website at www.invescopowershares.com.
©2016 Invesco PowerShares Capital Management LLC | P-PS-AR-7 | |||||
3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | ||||||
invescopowershares.com 800.983.0903 | @PowerShares |
April 30, 2016 |
2016 Annual Report to Shareholders
PYZ | PowerShares DWA Basic Materials Momentum Portfolio | |
PEZ | PowerShares DWA Consumer Cyclicals Momentum Portfolio | |
PSL | PowerShares DWA Consumer Staples Momentum Portfolio | |
PXI | PowerShares DWA Energy Momentum Portfolio | |
PFI | PowerShares DWA Financial Momentum Portfolio | |
PTH | PowerShares DWA Healthcare Momentum Portfolio | |
PRN | PowerShares DWA Industrials Momentum Portfolio | |
PTF | PowerShares DWA Technology Momentum Portfolio | |
PUI | PowerShares DWA Utilities Momentum Portfolio | |
PNQI | PowerShares NASDAQ Internet Portfolio |
The Market Environment | 3 | |||
Manager’s Analysis | 4 | |||
Sector Portfolios | ||||
Schedules of Investments | ||||
34 | ||||
35 | ||||
36 | ||||
37 | ||||
38 | ||||
39 | ||||
40 | ||||
41 | ||||
42 | ||||
43 | ||||
Statements of Assets and Liabilities | 46 | |||
Statements of Operations | 48 | |||
Statements of Changes in Net Assets | 50 | |||
Financial Highlights | 54 | |||
Notes to Financial Statements | 60 | |||
Report of Independent Registered Public Accounting Firm | 70 | |||
Fees and Expenses | 71 | |||
Tax Information | 73 | |||
Trustees and Officers | 74 | |||
Board Considerations Regarding Continuation of Investment Advisory Agreement | 79 |
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US Equity
Although the health of individual economic sectors varied dramatically, the US economy overall continued its slow but steady growth during the fiscal year ended April 30, 2016. This modest growth led to recurring debate over whether the US economy could withstand global recessionary forces. Many energy, industrial and materials companies experienced cyclical downturns resembling a mild recession even as many consumer-related companies benefited from continued low interest rates, increased availability of credit and a better employment picture. Another significant downturn in oil prices reduced capital investment but also reduced consumers’ energy and gasoline costs.
In the first half of the reporting period, US equity market performance was greatly affected by expectations of when, and whether, the US Federal Reserve (the “Fed”) might raise interest rates—and the impact the Fed’s action might have. Markets moved lower in the summer of 2015 as a significant downturn in China’s financial markets and weak global economic growth led to increased concern about the sustainability of US economic growth. In the fall, markets rallied and the Fed saw enough economic stabilization to finally raise interest rates.
US stocks began 2016 on a negative note. Together with a sharp decline in oil prices, this suggested a global recession might be imminent and caused investors to become decidedly risk averse; this helped short-term and income-oriented investments, but hurt longer-term and growth-oriented investments. As companies reported earnings and fundamentals that were better than had been feared, stocks rallied sharply in late February and March. Additionally, oil prices strengthened modestly on the back of a weaker US dollar and as Saudi Arabia and Russia considered a freeze on their oil output. Overall, US equity markets were mixed, with the S&P 500 Index, considered representative of the performance of the US stock market, finishing the reporting period modestly higher.
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PYZ | Manager’s Analysis | |
PowerShares DWA Basic Materials Momentum Portfolio (PYZ) |
As an index fund, the PowerShares DWA Basic Materials Momentum Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dorsey Wright® Basic Materials Technical Leaders Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies that comprise the Index. The basic materials companies that comprise the Index are principally engaged in the business of producing raw materials, including paper or wood products, chemicals, construction materials, and mining and metals.
Dorsey Wright & Associates, LLC (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its guidelines and mandated procedures, the Index Provider uses a proprietary methodology intended to identify objectively those securities within the universe of eligible securities that have the greatest potential for capital appreciation. The methodology evaluates these companies quarterly, based on a variety of criteria, including price momentum, to determine their relative strength, and it then ranks and sorts them based on their cumulative scores. Component securities for the Index are selected from among the companies with the highest-ranking cumulative score (“Model Score”) within the basic materials sub-group. In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum” style of investing emphasizes investing in securities that have had better recent performance compared to other securities. The momentum score for each security included in the Index is based on intermediate and long-term upward price movements of the security as compared to a representative benchmark and other eligible securities within the universe. The Index is composed of at least 30 common stocks of companies in the basic materials sector with powerful relative strength characteristics, selected from a universe of approximately 3,000 common stocks traded on U.S. exchanges. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price over a set period as compared to that of a benchmark index. The Index Provider weights each security according to its adjusted relative strength score, with securities exhibiting greater relative strength and higher liquidity representing a greater weight in the Index. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned 2.47%. On a net asset value (“NAV”) basis, the Fund returned 2.32%. During the same time period, the Index returned 3.01%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance,
on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.
During this same time period, the S&P 500® Materials Index (the “Benchmark Index”) returned (4.30)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 30 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of other indices similar to the Index. The Benchmark Index was selected for its recognition in the marketplace and its shared exposure to the materials sector.
The performance of the Fund differed from the Benchmark Index in part because the Index employs a proprietary stock selection and weighting methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization. More specifically, relative to the Benchmark Index, the Fund was most overweight in the specialty chemicals sub-industry and most underweight in the diversified chemicals sub-industry during the fiscal year ended April 30, 2016. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to stock selection in the diversified chemicals and steel sub industries as well as being overweight in the specialized real estate investment trust (“REIT”) and specialty chemicals sub-industries.
For the fiscal year ended April 30, 2016, the steel sub-industry contributed most significantly to the Fund’s return, followed by the industrial gases and gold sub-industries, respectively. The commodity chemicals sub-industry detracted most significantly from the Fund’s return, followed by the fertilizers & agricultural chemicals and oil & gas refining & marketing sub-industries, respectively.
Positions that contributed most significantly to the Fund’s return included Airgas, Inc., an industrial gases company (no longer held at fiscal year-end), and United States Steel Corp., a steel company (portfolio average weight of 0.58%). Positions that detracted most significantly from the Fund’s return included Westlake Chemical Corp., a commodity chemicals company (no longer held at fiscal year-end), and Green Plains, Inc., an oil & gas refining & marketing company (no longer held at fiscal year-end).
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PowerShares DWA Basic Materials Momentum Portfolio (PYZ) (continued)
Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Specialty Chemicals | 41.2 | |||
Steel | 14.5 | |||
Paper Packaging | 6.3 | |||
Industrial Gases | 5.9 | |||
Gold | 5.0 | |||
Commodity Chemicals | 4.3 | |||
Aluminum | 4.0 | |||
Diversified Metals & Mining | 4.0 | |||
Diversified Chemicals | 3.8 | |||
Fertilizers & Agricultural Chemicals | 3.5 | |||
Silver | 2.9 | |||
Paper Products | 1.3 | |||
Forest Products | 1.1 | |||
Precious Metals & Minerals | 1.1 | |||
Oil & Gas Equipment & Services | 1.0 | |||
Money Market Fund Plus Other Assets Less Liabilities | 0.1 | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
Ashland, Inc. | 4.8 | |||
W.R. Grace & Co. | 4.6 | |||
LyondellBasell Industries NV, Class A | 4.3 | |||
PPG Industries, Inc. | 4.1 | |||
Eastman Chemical Co. | 3.9 | |||
International Flavors & Fragrances, Inc. | 3.7 | |||
Monsanto Co. | 3.5 | |||
Air Products & Chemicals, Inc. | 3.5 | |||
Newmont Mining Corp. | 3.2 | |||
Avery Dennison Corp. | 3.2 | |||
Total | 38.8 |
* | Excluding money market fund holdings. |
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PowerShares DWA Basic Materials Momentum Portfolio (PYZ) (continued)
Growth of a $10,000 Investment Since Inception†
Fund Performance History as of April 30, 2016
1 Year | 3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years | Fund Inception† | |||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||
Blended-Dorsey Wright® Basic Materials Technical Leaders Index†† | 3.01 | % | 9.74 | % | 32.15 | % | 8.09 | % | 47.53 | % | 10.62 | % | 162.28 | % | ||||||||||||||||
S&P 500® Materials Index | (4.30 | ) | 8.24 | 26.82 | 5.38 | 29.98 | 6.49 | 82.36 | ||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||
NAV Return | 2.32 | 9.02 | 29.56 | 7.32 | 42.36 | 9.71 | 142.19 | |||||||||||||||||||||||
Market Price Return | 2.47 | 9.12 | 29.92 | 7.33 | 42.41 | 9.72 | 142.42 |
Fund Inception: October 12, 2006
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.69% and the net annual operating expense ratio was indicated as 0.60%. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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.
Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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.
† | Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund. |
†† | The Blended-Dorsey Wright® Basic Materials Technical Leaders Index performance is comprised of the performance of the Dynamic Basic Materials Sector IntellidexSM Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2016. |
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PEZ | Manager’s Analysis | |
PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ) |
As an index fund, the PowerShares DWA Consumer Cyclicals Momentum Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dorsey Wright® Consumer Cyclicals Technical Leaders Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies that comprise the Index. The consumer cyclicals companies that comprise the Index 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 home construction and furnishing.
Dorsey Wright & Associates, LLC (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its guidelines and mandated procedures, the Index Provider uses a proprietary methodology intended to identify objectively those securities within the universe of eligible securities that have the greatest potential for capital appreciation. The methodology evaluates these companies quarterly, based on a variety of criteria, including price momentum, to determine their relative strength, and it then ranks and sorts them based on their cumulative scores. Component securities for the Index are selected from among the companies with the highest-ranking cumulative score (“Model Score”) within the consumer cyclicals sub-group. In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum” style of investing emphasizes investing in securities that have had better recent performance compared to other securities. The momentum score for each security included in the Index is based on intermediate and long-term upward price movements of the security as compared to a representative benchmark and other eligible securities within the universe. The Index is composed of at least 30 common stocks of companies in the consumer discretionary sector with powerful relative strength characteristics, selected from a universe of approximately 3,000 common stocks traded on U.S. exchanges. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price over a set period as compared to that of a benchmark index. The Index Provider weights each security according to its adjusted relative strength score, with securities exhibiting greater relative strength and higher liquidity representing a greater weight in the Index. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned (7.76)%. On a net asset value (“NAV”) basis, the Fund returned (7.73)%. During the same time period, the Index returned (7.14)%. During the fiscal year, the Fund fully
replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.
During this same time period, the S&P 500® Consumer Discretionary Index (the “Benchmark Index”) returned 6.93%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 90 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of other indices similar to the Index as well as to that of the broader-based market benchmarks. The Benchmark Index was selected for its recognition in the marketplace and its shared exposure to the consumer discretionary sector.
The performance of the Fund differed from the Benchmark Index in part because the Index employs a proprietary stock selection and weighting methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization. More specifically, relative to the Benchmark Index, the Fund was most overweight in the airlines sub-industry and most underweight in the movies & entertainment sub-industry during the fiscal year ended April 30, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to stock selection in the apparel retail, media and restaurant subindustries.
For the fiscal year ended April 30, 2016, the leisure facilities sub-industry contributed most significantly to the Fund’s return, followed by the footwear and automotive retail sub-industries, respectively. The department stores sub-industry detracted most significantly from the Fund’s return, followed by the hotels resorts & cruise lines and apparel accessories & luxury goods sub-industries, respectively.
Positions that contributed most significantly to the Fund’s return included Hawaiian Holdings, Inc., an airlines company (portfolio average weight of 2.21%), and O’Reilly Automotive, Inc., an automotive retail company (portfolio average weight of 5.80%). Positions that detracted most significantly from the Fund’s return included Dillard’s, Inc. Class A, a department stores company (no longer held at fiscal year-end), and Nexstar Broadcasting Group, Inc. Class A, a broadcasting company (no longer held at fiscal year-end).
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PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ) (continued)
Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Apparel Retail | 12.8 | |||
Airlines | 11.5 | |||
Restaurants | 11.3 | |||
Automotive Retail | 7.9 | |||
Footwear | 7.9 | |||
Auto Parts & Equipment | 6.9 | |||
Specialty Stores | 6.3 | |||
Home Entertainment Software | 5.1 | |||
Leisure Facilities | 4.1 | |||
Apparel, Accessories & Luxury Goods | 3.3 | |||
Cable & Satellite | 3.1 | |||
Home Improvement Retail | 2.8 | |||
Movies & Entertainment | 2.7 | |||
Household Appliances | 2.4 | |||
Hypermarkets & Super Centers | 2.4 | |||
Tires & Rubber | 2.1 | |||
Distributors | 2.0 | |||
Internet Retail | 1.9 | |||
Casinos & Gaming | 1.8 | |||
Consumer Electronics | 1.7 | |||
Money Market Fund Plus Other Assets Less Liabilities | (0.0) |
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
O’Reilly Automotive, Inc. | 4.4 | |||
Skechers U.S.A., Inc., Class A | 4.1 | |||
NIKE, Inc., Class B | 3.8 | |||
Domino’s Pizza, Inc. | 3.7 | |||
Tractor Supply Co. | 3.7 | |||
AutoZone, Inc. | 3.5 | |||
Hawaiian Holdings, Inc. | 3.5 | |||
Ross Stores, Inc. | 3.4 | |||
Alaska Air Group, Inc. | 3.4 | |||
Electronic Arts, Inc. | 3.2 | |||
Total | 36.7 |
* | Excluding money market fund holdings. |
Growth of a $10,000 Investment Since Inception†
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PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ) (continued)
Fund Performance History as of April 30, 2016
1 Year | 3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years Cumulative | Fund Inception† | |||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||
Blended-Dorsey Wright® Consumer Cyclicals Technical Leaders Index†† | (7.14 | )% | 8.47 | % | 27.62 | % | 10.39 | % | 63.93 | % | 6.80 | % | 87.48 | % | ||||||||||||||||
S&P 500® Consumer Discretionary Index | 6.93 | 15.03 | 52.19 | 16.26 | 112.38 | 10.19 | 152.60 | |||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||
NAV Return | (7.73 | ) | 7.75 | 25.11 | 9.62 | 58.32 | 6.15 | 76.85 | ||||||||||||||||||||||
Market Price Return | (7.76 | ) | 7.78 | 25.19 | 9.63 | 58.34 | 6.15 | 76.87 |
Fund Inception: October 12, 2006
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.78% and the net annual operating expense ratio was indicated as 0.60%. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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.
Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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.
† | Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund. |
†† | The Blended-Dorsey Wright® Consumer Cyclicals Technical Leaders Index performance is comprised of the performance of the Dynamic Consumer Discretionary Sector IntellidexSM Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2016. |
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PSL | Manager’s Analysis | |
PowerShares DWA Consumer Staples Momentum Portfolio (PSL) |
As an index fund, the PowerShares DWA Consumer Staples Momentum Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dorsey Wright® Consumer Staples Technical Leaders Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies that comprise the Index. The consumer staples companies that comprise the Index 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 goods and services.
Dorsey Wright & Associates, LLC (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its guidelines and mandated procedures, the Index Provider uses a proprietary methodology intended to identify objectively those securities within the universe of eligible securities that have the greatest potential for capital appreciation. The methodology evaluates these companies quarterly, based on a variety of criteria, including price momentum, to determine their relative strength, and it then ranks and sorts them based on their cumulative scores. Component securities for the Index are selected from among the companies with the highest-ranking cumulative score (“Model Score”) within the consumer staples sub-group. In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum” style of investing emphasizes investing in securities that have had better recent performance compared to other securities. The momentum score for each security included in the Index is based on intermediate and long-term upward price movements of the security as compared to a representative benchmark and other eligible securities within the universe. The Index is composed of at least 30 common stocks of companies in the consumer staples sector with powerful relative strength characteristics, selected from a universe of approximately 3,000 common stocks traded on U.S. exchanges. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price over a set period as compared to that of a benchmark index. The Index Provider weights each security according to its adjusted relative strength score, with securities exhibiting greater relative strength and higher liquidity representing a greater weight in the Index. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned 9.67%. On a net asset value (“NAV”) basis, the Fund returned 9.67%. During the same time period, the Index returned 10.38%. During the fiscal year, the Fund fully replicated
the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.
During this same time period, the S&P 500® Consumer Staples Index (the “Benchmark Index”) returned 10.86%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 40 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of other indices similar to the Index. The Benchmark Index was selected for its recognition in the marketplace and its shared exposure to the consumer staples sector.
The performance of the Fund differed from the Benchmark Index in part because the Index employs a proprietary stock selection and weighting methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization. More specifically, relative to the Benchmark Index, the Fund was most overweight in the housewares & specialties sub-industry and most underweight in the soft drinks sub-industry during the fiscal year ended April 30, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to stock selections in the consumer services sub-industry, being underweight in the household products sub–industry and the fees and operating expenses that the Fund incurred.
For the fiscal year ended April 30, 2016, the tobacco sub-industry contributed most significantly to the Fund’s return, followed by the household products and distillers & vintners sub-industries, respectively. The specialized consumer services sub-industry detracted most significantly from the Fund’s return, followed by the personal products and home furnishings sub-industries, respectively.
Positions that contributed most significantly to the Fund’s return included Reynolds American, Inc., a tobacco company (portfolio average weight of 4.60%), and Altria Group, Inc., a tobacco company (portfolio average weight of 4.90%). Positions that detracted most significantly from the Fund’s return included Hain Celestial Group, Inc. (The), a packaged foods & meats company (no longer held at fiscal year-end), and Fairway Group Holdings Corp. Class A, a food retail company (no longer held at fiscal year-end).
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PowerShares DWA Consumer Staples Momentum Portfolio (PSL) (continued)
Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Packaged Foods & Meats | 26.2 | |||
Household Products | 11.5 | |||
Tobacco | 10.4 | |||
Personal Products | 8.6 | |||
Soft Drinks | 8.2 | |||
Distillers & Vintners | 7.6 | |||
Specialized Consumer Services | 5.9 | |||
Industrial Machinery | 5.5 | |||
Agricultural Products | 3.0 | |||
Internet Software & Services | 3.0 | |||
Health Care Services | 2.6 | |||
Brewers | 2.0 | |||
Environmental & Facilities Services | 1.6 | |||
Household Appliances | 1.6 | |||
Education Services | 1.4 | |||
Food Distributors | 0.9 | |||
Money Market Fund Plus Other Assets Less Liabilities | 0.0 | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
Altria Group, Inc. | 5.4 | |||
Monster Beverage Corp. | 5.0 | |||
Reynolds American, Inc. | 5.0 | |||
Church & Dwight Co., Inc. | 4.9 | |||
Constellation Brands, Inc., Class A | 4.7 | |||
McCormick & Co., Inc. | 3.9 | |||
Weight Watchers International, Inc. | 3.6 | |||
Estee Lauder Cos., Inc. (The), Class A | 3.5 | |||
Tyson Foods, Inc., Class A | 3.3 | |||
Dr Pepper Snapple Group, Inc. | 3.2 | |||
Total | 42.5 |
* | Excluding money market fund holdings. |
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PowerShares DWA Consumer Staples Momentum Portfolio (PSL) (continued)
Growth of a $10,000 Investment Since Inception†
Fund Performance History as of April 30, 2016
1 Year | 3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years Cumulative | Fund Inception† | |||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||
Blended-Dorsey Wright® Consumer Staples Technical Leaders Index†† | 10.38 | % | 14.22 | % | 49.01 | % | 14.64 | % | 97.99 | % | 11.10 | % | 173.38 | % | ||||||||||||||||
S&P 500® Consumer Staples Index | 10.86 | 11.22 | 37.59 | 13.72 | 90.17 | 10.93 | 169.21 | |||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||
NAV Return | 9.67 | 13.50 | 46.22 | 13.91 | 91.80 | 10.36 | 156.37 | |||||||||||||||||||||||
Market Price Return | 9.67 | 13.52 | 46.30 | 13.91 | 91.76 | 10.36 | 156.31 |
Fund Inception: October 12, 2006
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.78% and the net annual operating expense ratio was indicated as 0.60%. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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.
Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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.
† | Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund. |
†† | The Blended-Dorsey Wright® Consumer Staples Technical Leaders Index performance is comprised of the performance of the Dynamic Consumer Staples Sector IntellidexSM Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2016. |
| 12 |
|
PXI | Manager’s Analysis | |
PowerShares DWA Energy Momentum Portfolio (PXI) |
As an index fund, the PowerShares DWA Energy Momentum Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dorsey Wright® Energy Technical Leaders Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies that comprise the Index. The energy companies that comprise the Index are principally engaged in the business of producing, distributing or servicing energy-related products, including oil and gas exploration and production, refining, oil services, pipeline, and solar, wind and other non-oil based energy.
Dorsey Wright & Associates, LLC (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its guidelines and mandated procedures, the Index Provider uses a proprietary methodology intended to identify objectively those securities within the universe of eligible securities that have the greatest potential for capital appreciation. The methodology evaluates these companies quarterly, based on a variety of criteria, including price momentum, to determine their relative strength, and it then ranks and sorts them based on their cumulative scores. Component securities for the Index are selected from among the companies with the highest-ranking cumulative score (“Model Score”) within the energy sub-group. In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum” style of investing emphasizes investing in securities that have had better recent performance compared to other securities. The momentum score for each security included in the Index is based on intermediate and long-term upward price movements of the security as compared to a representative benchmark and other eligible securities within the universe. The Index is composed of at least 30 common stocks of companies in the energy sector with powerful relative strength characteristics, selected from a universe of approximately 3,000 common stocks traded on U.S. exchanges. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price over a set period as compared to that of a benchmark index. The Index Provider weights each security according to its adjusted relative strength score, with securities exhibiting greater relative strength and higher liquidity representing a greater weight in the Index. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned (22.05)%. On a net asset value (“NAV”) basis, the Fund returned (22.03)%. During the same time period, the Index returned (21.47)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s
performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.
During this same time period, the S&P 500® Energy Index (the “Benchmark Index”) returned (13.91)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 40 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of other indices similar to the Index. The Benchmark Index was selected for its recognition in the marketplace and its shared exposure to the energy sector.
The performance of the Fund differed from the Benchmark Index in part because the Index employs a proprietary stock selection and weighting methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization. More specifically, relative to the Benchmark Index, the Fund was most overweight in the oil & gas exploration & production sub-industry and most underweight in the integrated oil & gas sub-industry during the fiscal year ended April 30, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to stock selection in the oil and gas services and integrated oil & gas sub-industries as well as being overweight the exploration & production sub-industry.
For the fiscal year ended April 30, 2016, the oil & gas exploration & production sub-industry contributed most significantly to the Fund’s return, followed by the coal & consumable fuels and integrated oil & gas sub-industries, respectively. The oil & gas refining & marketing sub-industry detracted most significantly from the Fund’s return, followed by the oil & gas storage & transportation and oil & gas equipment & services sub-industries, respectively.
Positions that contributed most significantly to the Fund’s return included SM Energy Co., an oil & gas exploration & production company (portfolio average weight of 0.32%), and Parsley Energy, Inc. Class A, an oil & gas exploration & production company (portfolio average weight of 1.65%). Positions that detracted most significantly from the Fund’s return included SemGroup Corp. Class A, an oil & gas storage & transportation company (no longer held at fiscal year-end), and Cheniere Energy, Inc., an oil & gas storage & transportation company (portfolio average weight of 4.20%).
| 13 |
|
PowerShares DWA Energy Momentum Portfolio (PXI) (continued)
Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Oil & Gas Exploration & Production | 55.5 | |||
Oil & Gas Drilling | 10.3 | |||
Integrated Oil & Gas | 8.8 | |||
Oil & Gas Storage & Transportation | 7.7 | |||
Oil & Gas Equipment & Services | 7.5 | |||
Oil & Gas Refining & Marketing | 6.4 | |||
Coal & Consumable Fuels | 3.7 | |||
Money Market Fund Plus Other Assets Less Liabilities | 0.1 |
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
SM Energy Co. | 4.8 | |||
Concho Resources, Inc. | 4.4 | |||
Whiting Petroleum Corp. | 4.3 | |||
Pioneer Natural Resources Co. | 4.3 | |||
Cheniere Energy, Inc. | 4.1 | |||
Diamondback Energy, Inc. | 4.0 | |||
WPX Energy, Inc. | 3.8 | |||
CONSOL Energy, Inc. | 3.7 | |||
Tesoro Corp. | 3.6 | |||
Targa Resources Corp. | 3.6 | |||
Total | 40.6 |
* | Excluding money market fund holdings. |
Growth of a $10,000 Investment Since Inception†
Fund Performance History as of April 30, 2016
1 Year | 3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years Cumulative | Fund Inception† | |||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||
Blended-Dorsey Wright® Energy Technical Leaders Index†† | (21.47 | )% | (6.08 | )% | (17.15 | )% | (1.40 | )% | (6.79 | )% | 5.66 | % | 69.19 | % | ||||||||||||||||
S&P 500® Energy Index | (13.91 | ) | (1.98 | ) | (5.83 | ) | (1.01 | ) | (4.93 | ) | 4.43 | 51.29 | ||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||
NAV Return | (22.03 | ) | (6.70 | ) | (18.77 | ) | (2.08 | ) | (9.98 | ) | 5.00 | 59.28 | ||||||||||||||||||
Market Price Return | (22.05 | ) | (6.68 | ) | (18.73 | ) | (2.09 | ) | (10.04 | ) | 5.00 | 59.36 |
| 14 |
|
PowerShares DWA Energy Momentum Portfolio (PXI) (continued)
Fund Inception: October 12, 2006
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.71% and the net annual operating expense ratio was indicated as 0.60%. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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.
Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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.
† | Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund. |
†† | The Blended-Dorsey Wright® Energy Technical Leaders Index performance is comprised of the performance of the Dynamic Energy Sector IntellidexSM Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2016. |
| 15 |
|
PFI | Manager’s Analysis | |
PowerShares DWA Financial Momentum Portfolio (PFI) |
As an index fund, the PowerShares DWA Financial Momentum Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dorsey Wright® Financials Technical Leaders Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies that comprise the Index.
Dorsey Wright & Associates, LLC (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its guidelines and mandated procedures, the Index Provider uses a proprietary methodology intended to identify objectively those securities within the universe of eligible securities that have the greatest potential for capital appreciation. The methodology evaluates these companies quarterly, based on a variety of criteria, including price momentum, to determine their relative strength, and it then ranks and sorts them based on their cumulative scores. Component securities for the Index are selected from among the companies with the highest-ranking cumulative score (“Model Score”) within the financials sub-group. In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum” style of investing emphasizes investing in securities that have had better recent performance compared to other securities. The momentum score for each security included in the Index is based on intermediate and long-term upward price movements of the security as compared to a representative benchmark and other eligible securities within the universe. The Index is composed of at least 30 common stocks of companies in the financial sector with powerful relative strength characteristics, selected from a universe of approximately 3,000 common stocks traded on U.S. exchanges. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price over a set period as compared to that of a benchmark index. The Index Provider weights each security according to its adjusted relative strength score, with securities exhibiting greater relative strength and higher liquidity representing a greater weight in the Index. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned (3.08)%. On a net asset value (“NAV”) basis, the Fund returned (3.11)%. During the same time period, the Index returned (2.49)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.
During this same time period, the S&P 500® Financials Index (the “Benchmark Index”) returned (1.48)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 90 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of a broad-based market benchmark. The Benchmark Index was selected for its recognition in the marketplace, and its shared exposure to the financials sector.
The performance of the Fund differed from the Benchmark Index in part because the Index employs a proprietary stock selection and weighting methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization. More specifically, relative to the Benchmark Index, the Fund was most overweight in the retail real estate investment trust (“REIT”) sub-industry and most underweight in the diversified banks sub-industry during the fiscal year ended April 30, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to stock selection in the banks sub-industry as well as being underweight in the insurance sub-industries.
For the fiscal year ended April 30, 2016, the specialized REITs sub-industry contributed most significantly to the Fund’s return, followed by the data processing & outsourced services and residential REITs sub-industries, respectively. The thrifts & mortgage finance sub-industry detracted most significantly from the Fund’s return, followed by the consumer finance and property & casualty insurance sub-industries, respectively.
Positions that contributed most significantly to the Fund’s return included Public Storage, a specialized REITs company (portfolio average weight of 5.43%), and Extra Space Storage, Inc., a specialized REITs company (portfolio average weight of 3.91%). Positions that detracted most significantly from the Fund’s return included MGIC Investment Corp., a thrifts & mortgage finance company (no longer held at fiscal year-end), and CBRE Group, Inc. Class A, a real estate services company (no longer held at fiscal year-end).
| 16 |
|
PowerShares DWA Financial Momentum Portfolio (PFI) (continued)
Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Retail REITs | 28.2 | |||
Specialized REITs | 12.7 | |||
Residential REITs | 12.3 | |||
Property & Casualty Insurance | 11.5 | |||
Regional Banks | 10.5 | |||
Specialized Finance | 5.0 | |||
Data Processing & Outsourced Services | 4.4 | |||
Life & Health Insurance | 3.9 | |||
Diversified REITs | 3.6 | |||
Multi-line Insurance | 2.3 | |||
Diversified Banks | 2.1 | |||
Industrial REITs | 1.7 | |||
Office REITs | 1.7 | |||
Money Market Fund Plus Other Assets Less Liabilities | 0.1 | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
General Growth Properties, Inc. REIT | 4.7 | |||
Simon Property Group, Inc. REIT | 4.4 | |||
Public Storage REIT | 4.3 | |||
Federal Realty Investment Trust REIT | 4.2 | |||
Regency Centers Corp. REIT | 3.8 | |||
Realty Income Corp. REIT | 3.5 | |||
Extra Space Storage, Inc. REIT | 3.4 | |||
Macerich Co. (The) REIT | 3.3 | |||
Markel Corp. | 3.2 | |||
XL Group PLC | 3.0 | |||
Total | 37.8 |
* | Excluding money market fund holdings. |
| 17 |
|
PowerShares DWA Financial Momentum Portfolio (PFI) (continued)
Growth of a $10,000 Investment Since Inception†
Fund Performance History as of April 30, 2016
1 Year | 3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years | Fund Inception† | |||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||
Blended-Dorsey Wright® Financials Technical Leaders Index†† | (2.49 | )% | 9.26 | % | 30.43 | % | 9.75 | % | 59.21 | % | 3.73 | % | 41.87 | % | ||||||||||||||||
S&P 500® Financials Index | (1.48 | ) | 9.67 | 31.89 | 9.39 | 56.60 | (2.20 | ) | (19.15 | ) | ||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||
NAV Return | (3.11 | ) | 8.50 | 27.74 | 8.97 | 53.63 | 2.94 | 31.85 | ||||||||||||||||||||||
Market Price Return | (3.08 | ) | 8.55 | 27.89 | 8.99 | 53.76 | 2.95 | 31.95 |
Fund Inception: October 12, 2006
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.85% and the net annual operating expense ratio was indicated as 0.60%. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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.
Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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.
† | Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund. |
†† | The Blended-Dorsey Wright® Financials Technical Leaders Index performance is comprised of the performance of the Dynamic Financial Sector IntellidexSM Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2016. |
| 18 |
|
PTH | Manager’s Analysis | |
PowerShares DWA Healthcare Momentum Portfolio (PTH) |
As an index fund, the PowerShares DWA Healthcare Momentum Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dorsey Wright® Healthcare Technical Leaders Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies that comprise the Index. The health care companies that comprise the Index are principally engaged in the business of providing health care-related products and services, including biotechnology, pharmaceuticals, medical technology and supplies, and facilities.
Dorsey Wright & Associates, LLC (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its guidelines and mandated procedures, the Index Provider uses a proprietary methodology intended to identify objectively those securities within the universe of eligible securities that have the greatest potential for capital appreciation. The methodology evaluates these companies quarterly, based on a variety of criteria, including price momentum, to determine their relative strength, and it then ranks and sorts them based on their cumulative scores. Component securities for the Index are selected from among the companies with the highest-ranking cumulative score (“Model Score”) within the health care sub-group. In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum” style of investing emphasizes investing in securities that have had better recent performance compared to other securities. The momentum score for each security included in the Index is based on intermediate and long-term upward price movements of the security as compared to a representative benchmark and other eligible securities within the universe. The Index is composed of at least 30 common stocks of companies in the health care sector with powerful relative strength characteristics, selected from a universe of approximately 3,000 common stocks traded on U.S. exchanges. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price over a set period as compared to that of a benchmark index. The Index Provider weights each security according to its adjusted relative strength score, with securities exhibiting greater relative strength and higher liquidity representing a greater weight in the Index. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned (23.18)%. On a net asset value (“NAV”) basis, the Fund returned (23.18)%. During the same time period, the Index returned (22.56)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the
Index primarily due to fees and operating expenses that the Fund incurred during the period.
During this same time period, the S&P 500® Health Care Index (the “Benchmark Index”) returned (1.08)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 60 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of other indices similar to the Index. The Benchmark Index was selected for its recognition in the marketplace and its shared exposure to the health care sector.
The performance of the Fund differed from the Benchmark Index in part because the Index employs a proprietary stock selection and weighting methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization. More specifically, relative to the Benchmark Index, the Fund was most overweight in the biotechnology sub-industry and most underweight in the pharmaceuticals sub-industry during the fiscal year ended April 30, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to the Fund being overweight in the biotechnology sub-industry as well as stock selection in the pharmaceuticals sub-industry.
For the fiscal year ended April 30, 2016, the health care equipment sub-industry contributed most significantly to the Fund’s return, followed by the health care services and health care supplies sub-industries, respectively. The biotechnology sub-industry detracted most significantly from the Fund’s return, followed by the pharmaceuticals and life sciences tools & services sub-industries, respectively.
Positions that contributed most significantly to the Fund’s return included Amedisys, Inc., a health care services company (portfolio average weight of 1.45%), and West Pharmaceutical Services, Inc., a health care supplies company (portfolio average weight of 2.28%). Positions that detracted most significantly from the Fund’s return included Anacor Pharmaceuticals, Inc., a biotechnology company (no longer held at fiscal year-end), and Alkermes PLC, a biotechnology company (no longer held at fiscal year-end).
| 19 |
|
PowerShares DWA Healthcare Momentum Portfolio (PTH) (continued)
Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Health Care Equipment | 27.2 | |||
Biotechnology | 17.2 | |||
Life Sciences Tools & Services | 13.0 | |||
Health Care Supplies | 12.7 | |||
Managed Health Care | 9.7 | |||
Health Care Facilities | 8.4 | |||
Pharmaceuticals | 8.1 | |||
Health Care Services | 3.8 | |||
Money Market Fund Plus Other Assets Less Liabilities | (0.1) |
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
Cooper Cos., Inc. (The) | 4.4 | |||
Becton, Dickinson and Co. | 4.2 | |||
Boston Scientific Corp. | 4.2 | |||
Ligand Pharmaceuticals, Inc. | 4.0 | |||
UnitedHealth Group, Inc. | 3.9 | |||
Amedisys, Inc. | 3.8 | |||
West Pharmaceutical Services, Inc. | 3.7 | |||
HCA Holdings, Inc. | 3.6 | |||
BioMarin Pharmaceutical, Inc. | 3.6 | |||
Aetna, Inc. | 3.6 | |||
Total | 39.0 |
* | Excluding money market fund holdings. |
Growth of a $10,000 Investment Since Inception†
Fund Performance History as of April 30, 2016
1 Year | 3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years Cumulative | Fund Inception† | |||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||
Blended-Dorsey Wright® Healthcare Technical Leaders Index†† | (22.56 | )% | 5.45 | % | 17.27 | % | 8.21 | % | 48.33 | % | 7.16 | % | 93.55 | % | ||||||||||||||||
S&P 500® Health Care Index | (1.08 | ) | 15.65 | 54.69 | 16.84 | 117.76 | 10.19 | 152.57 | ||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||
NAV Return | (23.18 | ) | 4.69 | 14.75 | 7.43 | 43.10 | 6.37 | 80.40 | ||||||||||||||||||||||
Market Price Return | (23.18 | ) | 4.73 | 14.87 | 7.40 | 42.87 | 6.37 | 80.28 |
| 20 |
|
PowerShares DWA Healthcare Momentum Portfolio (PTH) (continued)
Fund Inception: October 12, 2006
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.75% and the net annual operating expense ratio was indicated as 0.60%. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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.
Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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.
† | Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund. |
†† | The Blended-Dorsey Wright® Healthcare Technical Leaders Index performance is comprised of the performance of the Dynamic Healthcare Sector IntellidexSM Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2016. |
| 21 |
|
PRN | Manager’s Analysis | |
PowerShares DWA Industrials Momentum Portfolio (PRN) |
As an index fund, the PowerShares DWA Industrials Momentum Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dorsey Wright® Industrials Technical Leaders Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies that comprise the Index. The industrial companies that comprise the Index 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 products and services.
Dorsey Wright & Associates, LLC (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its guidelines and mandated procedures, the Index Provider uses a proprietary methodology intended to identify objectively those securities within the universe of eligible securities that have the greatest potential for capital appreciation. The methodology evaluates these companies quarterly, based on a variety of criteria, including price momentum, to determine their relative strength, and it then ranks and sorts them based on their cumulative scores. Component securities for the Index are selected from among the companies with the highest-ranking cumulative score (“Model Score”) within the industrials sub-group. In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum” style of investing emphasizes investing in securities that have had better recent performance compared to other securities. The momentum score for each security included in the Index is based on intermediate and long-term upward price movements of the security as compared to a representative benchmark and other eligible securities within the universe. The Index is composed of at least 30 common stocks of companies in the industrials sector with powerful relative strength characteristics, selected from a universe of approximately 3,000 common stocks traded on U.S. exchanges. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price over a set period as compared to that of a benchmark index. The Index Provider weights each security according to its adjusted relative strength score, with securities exhibiting greater relative strength and higher liquidity representing a greater weight in the Index. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned (3.26)%. On a net asset value (“NAV”) basis, the Fund returned (3.24)%. During the same time period, the Index returned (2.60)%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s
performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.
During this same time period, the S&P 500® Industrials Index (the “Benchmark Index”) returned 4.15%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 65 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of indices similar to the Index. The Benchmark Index was selected for its recognition in the marketplace and its shared exposure to the industrials sector.
The performance of the Fund differed from the Benchmark Index in part because the Index employs a proprietary stock selection and weighting methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization. More specifically, relative to the Benchmark Index, the Fund was most overweight in the building products sub-industry and most underweight in the industrial conglomerates sub-industry during the fiscal year ended April 30, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to stock selection in railroads and air freight & logistics sub-industries as well as being overweight in the software and IT services sub-industries.
For the fiscal year ended April 30, 2016, the building products sub-industry contributed most significantly to the Fund’s return, followed by the aerospace & defense and IT consulting & other services sub-industries, respectively. The railroads sub-industry detracted most significantly from the Fund’s return, followed by the oil & gas equipment & services and research & consulting services sub-industries, respectively.
Positions that contributed most significantly to the Fund’s return included Lockheed Martin Corp., an aerospace & defense company (portfolio average weight of 4.68%), and A.O. Smith Corp., a building products company (portfolio average weight of 3.00%). Positions that detracted most significantly from the Fund’s return included Nuverra Environmental Solutions, Inc., an oil & gas equipment & services company (no longer held at fiscal year-end), and CSX Corp., a railroads company (no longer held at fiscal year-end).
| 22 |
|
PowerShares DWA Industrials Momentum Portfolio (PRN) (continued)
Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Aerospace & Defense | 20.4 | |||
Building Products | 12.4 | |||
Industrial Conglomerates | 11.3 | |||
IT Consulting & Other Services | 6.9 | |||
Data Processing & Outsourced Services | 5.6 | |||
Specialty Chemicals | 5.4 | |||
Industrial Machinery | 4.8 | |||
Electrical Components & Equipment | 4.8 | |||
Construction Materials | 4.6 | |||
Leisure Products | 3.3 | |||
Diversified Support Services | 3.2 | |||
Health Care Services | 2.4 | |||
Construction & Engineering | 2.0 | |||
Commercial Printing | 1.8 | |||
Electronic Components | 1.8 | |||
Trading Companies & Distributors | 1.7 | |||
Agricultural & Farm Machinery | 1.6 | |||
Application Software | 1.5 | |||
Distributors | 1.3 | |||
Internet Software & Services | 1.2 | |||
Commodity Chemicals | 1.1 | |||
Air Freight & Logistics | 0.8 | |||
Money Market Fund Plus Other Assets Less Liabilities | 0.1 | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
TransDigm Group, Inc. | 5.5 | |||
Sherwin-Williams Co. (The) | 5.4 | |||
Lockheed Martin Corp. | 4.9 | |||
AMETEK, Inc. | 4.8 | |||
Roper Technologies, Inc. | 4.4 | |||
A.O. Smith Corp. | 4.0 | |||
Accenture PLC, Class A | 3.6 | |||
Danaher Corp. | 3.5 | |||
Raytheon Co. | 2.6 | |||
Lennox International, Inc. | 2.5 | |||
Total | 41.2 |
* | Excluding money market fund holdings. |
| 23 |
|
PowerShares DWA Industrials Momentum Portfolio (PRN) (continued)
Growth of a $10,000 Investment Since Inception†
Fund Performance History as of April 30, 2016
1 Year | 3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years Cumulative | Fund Inception† | |||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||
Blended-Dorsey Wright® Industrials Technical Leaders Index†† | (2.60 | )% | 8.24 | % | 26.80 | % | 8.62 | % | 51.20 | % | 7.83 | % | 105.47 | % | ||||||||||||||||
S&P 500® Industrials Index | 4.15 | 13.25 | 45.25 | 10.36 | 63.68 | 7.11 | 92.77 | |||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||
NAV Return | (3.24 | ) | 7.51 | 24.28 | 7.69 | 44.84 | 6.93 | 89.66 | ||||||||||||||||||||||
Market Price Return | (3.26 | ) | 7.53 | 24.35 | 7.68 | 44.79 | 6.94 | 89.74 |
Fund Inception: October 12, 2006
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.64% and the net annual operating expense ratio was indicated as 0.60%. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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.
Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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.
† | Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund. |
†† | The Blended-Dorsey Wright® Industrials Technical Leaders Index performance is comprised of the performance of the Dynamic Industrials Sector IntellidexSM Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2016. |
| 24 |
|
PTF | Manager’s Analysis | |
PowerShares DWA Technology Momentum Portfolio (PTF) |
As an index fund, the PowerShares DWA Technology Momentum Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dorsey Wright® Technology Technical Leaders Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies that comprise the Index. The technology companies that comprise the Index are principally engaged in the business of providing technology-related products and services, including computer hardware and software, Internet, electronics and semiconductors, and communication technologies.
Dorsey Wright & Associates, LLC (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its guidelines and mandated procedures, the Index Provider uses a proprietary methodology intended to identify objectively those securities within the universe of eligible securities that have the greatest potential for capital appreciation. The methodology evaluates these companies quarterly, based on a variety of criteria, including price momentum, to determine their relative strength, and it then ranks and sorts them based on their cumulative scores. Component securities for the Index are selected from among the companies with the highest-ranking cumulative score (“Model Score”) within the technology sub-group. In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum” style of investing emphasizes investing in securities that have had better recent performance compared to other securities. The momentum score for each security included in the Index is based on intermediate and long-term upward price movements of the security as compared to a representative benchmark and other eligible securities within the universe. The Index is composed of at least 30 common stocks of companies in the technology sector with powerful relative strength characteristics, selected from a universe of approximately 3,000 common stocks traded on U.S. exchanges. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price over a set period as compared to that of a benchmark index. The Index Provider weights each security according to its adjusted relative strength score, with securities exhibiting greater relative strength and higher liquidity representing a greater weight in the Index. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned (10.41)%. On a net asset value (“NAV”) basis, the Fund returned (10.43)%. During the same time period, the Index returned (9.87)%. During the fiscal year, the Fund attempted to fully replicate the components of the Index, subject
to restrictions associated with being a diversified fund. The Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.
During this same time period, the S&P 500® Information Technology Index (the “Benchmark Index”) returned (0.10)%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 70 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of other indices similar to the Index. The Benchmark Index was selected for its recognition in the marketplace and its shared exposure to the technology sector.
The performance of the Fund differed from the Benchmark Index in part because the Index employs a proprietary stock selection and weighting methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization. More specifically, relative to the Benchmark Index, the Fund was most overweight in the application software sub-industry and most underweight in the technology hardware storage & peripherals sub-industry during the fiscal year ended April 30, 2016. The majority of the Fund’s underperformance relative to the Benchmark Index during the period can be attributed to stock selection in the telecommunication services and semiconductor & semiconductor equipment sub-industries and being overweight in the telecommunications services and health care technology sub-industries.
For the fiscal year ended April 30, 2016, the data processing & outsourced services sub-industry contributed most significantly to the Fund’s return, followed by the specialized real estate investment trust (“REIT”) and application software sub-industries, respectively. The semiconductor equipment sub-industry detracted most significantly from the Fund’s return, followed by the systems software and alternative carriers sub-industries, respectively.
Positions that contributed most significantly to the Fund’s return included Facebook, Inc. Class A, an internet software & services company (portfolio average weight of 3.56%), and Heartland Payment Systems, Inc., a data processing & outsourced services company (no longer held at fiscal year-end). Positions that detracted most significantly from the Fund’s return included SunEdison, Inc., a semiconductors & semiconductor equipment company (no longer held at fiscal year-end), and Straight Path Communications, Inc. Class B, an alternative carriers company (no longer held at fiscal year-end).
| 25 |
|
PowerShares DWA Technology Momentum Portfolio (PTF) (continued)
Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Application Software | 29.0 | |||
Semiconductors | 13.3 | |||
Internet Software & Services | 11.1 | |||
IT Consulting & Other Services | 8.3 | |||
Specialized REITs | 6.2 | |||
Alternative Carriers | 5.9 | |||
Data Processing & Outsourced Services | 5.8 | |||
Electronic Components | 5.6 | |||
Communications Equipment | 5.1 | |||
Technology Distributors | 3.8 | |||
Technology Hardware, Storage & Peripherals | 2.2 | |||
Systems Software | 2.0 | |||
Integrated Telecommunication Services | 1.7 | |||
Money Market Funds Plus Other Assets Less Liabilities | (0.0) |
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
Amphenol Corp., Class A | 5.6 | |||
Ellie Mae, Inc. | 5.5 | |||
Ultimate Software Group, Inc. (The) | 5.3 | |||
Facebook, Inc., Class A | 4.5 | |||
Equinix, Inc. REIT | 3.8 | |||
Computer Sciences Corp. | 3.7 | |||
VeriSign, Inc. | 3.7 | |||
Intuit, Inc. | 3.6 | |||
Cadence Design Systems, Inc. | 3.6 | |||
Adobe Systems, Inc. | 3.4 | |||
Total | 42.7 |
* | Excluding money market fund holdings. |
Growth of a $10,000 Investment Since Inception†
Fund Performance History as of April 30, 2016
1 Year | 3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years Cumulative | Fund Inception† | |||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||
Blended-Dorsey Wright® Technology Technical Leaders Index†† | (9.87 | )% | 8.54 | % | 27.87 | % | 6.62 | % | 37.79 | % | 4.63 | % | 54.08 | % | ||||||||||||||||
S&P 500® Information Technology Index | (0.10 | ) | 14.54 | 50.29 | 11.86 | 75.11 | 8.89 | 125.62 | ||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||
NAV Return | (10.43 | ) | 7.76 | 25.15 | 5.84 | 32.84 | 3.89 | 43.95 | ||||||||||||||||||||||
Market Price Return | (10.41 | ) | 7.86 | 25.49 | 5.85 | 32.89 | 3.89 | 43.95 |
| 26 |
|
PowerShares DWA Technology Momentum Portfolio (PTF) (continued)
Fund Inception: October 12, 2006
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.77% and the net annual operating expense ratio was indicated as 0.60%. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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.
Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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.
† | Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund. |
†† | The Blended-Dorsey Wright® Technology Technical Leaders Index performance is comprised of the performance of the Dynamic Technology Sector IntellidexSM Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2016. |
| 27 |
|
PUI | Manager’s Analysis | |
PowerShares DWA Utilities Momentum Portfolio (PUI) |
As an index fund, the PowerShares DWA Utilities Momentum Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. The Fund seeks investment results that generally correspond (before fees and expenses) to the price and yield of the Dorsey Wright® Utilities Technical Leaders Index (the “Index”). The Fund generally will invest at least 90% of its total assets in common stocks of companies that comprise the Index. The utilities companies that comprise the Index may include companies that generate and supply electricity, including electricity wholesalers; distribute natural gas to customers; provide water to customers, as well as deal with associated wastewater; and provide land line or wireless telephone services.
Dorsey Wright & Associates, LLC (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its guidelines and mandated procedures, the Index Provider uses a proprietary methodology intended to identify objectively those securities within the universe of eligible securities that have the greatest potential for capital appreciation. The methodology evaluates these companies quarterly, based on a variety of criteria, including price momentum, to determine their relative strength, and it then ranks and sorts them based on their cumulative scores. Component securities for the Index are selected from among the companies with the highest-ranking cumulative score (“Model Score”) within the utilities sub-group. In general, momentum is the tendency of an investment to exhibit persistence in its relative performance; a “momentum” style of investing emphasizes investing in securities that have had better recent performance compared to other securities. The momentum score for each security included in the Index is based on intermediate and long-term upward price movements of the security as compared to a representative benchmark and other eligible securities within the universe. The Index is composed of at least 30 common stocks of companies in the utilities sector with powerful relative strength characteristics, selected from a universe of approximately 3,000 common stocks traded on U.S. exchanges. “Relative strength” is an investing technique that seeks to determine the strongest performing securities by measuring certain factors, such as a security’s relative performance against the overall market or a security’s relative strength value, which is derived by comparing the rate of increase of the security’s price over a set period as compared to that of a benchmark index. The Index Provider weights each security according to its adjusted relative strength score, with securities exhibiting greater relative strength and higher liquidity representing a greater weight in the Index. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned 14.81%. On a net asset value (“NAV”) basis, the Fund returned 14.86%. During the same time period, the Index returned 15.53%. During the fiscal year, the Fund fully
replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.
During this same time period, the S&P 500® Utilities Index (the “Benchmark Index”) returned 13.67%. The Benchmark Index is an unmanaged index weighted by market capitalization based on the average performance of approximately 230 securities. The Fund provided this additional comparative benchmark to help investors better understand how the investment results of the Fund compare to the performance of other indices similar to the Index. The Benchmark Index was selected for its recognition in the marketplace and its shared exposure to the utilities sector.
The performance of the Fund differed from the Benchmark Index in part because the Index employs a proprietary stock selection and weighting methodology, whereas the Benchmark Index selects and weights stocks based on market capitalization. More specifically, relative to the Benchmark Index, the Fund was most overweight in the gas utilities sub-industry and most underweight in the electric utilities sub-industry during the fiscal year ended April 30, 2016. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to stock selection in the internet software & services sub-industry as well as being overweight in the oil & gas exploration sub-industry.
For the fiscal year ended April 30, 2016, the multi-utilities sub-industry contributed most significantly to the Fund’s return, followed by the electric utilities and gas utilities sub-industries, respectively. The oil & gas exploration & production sub-industry detracted most significantly from the Fund’s return, followed by the oil & gas storage & transportation and integrated telecommunication services sub-industries, respectively.
Positions that contributed most significantly to the Fund’s return included NiSource, Inc., a multi-utilities company (no longer held at fiscal year-end), and Atmos Energy Corp., a gas utilities company (portfolio average weight of 3.02%). Positions that detracted most significantly from the Fund’s return included EQT Corp., an oil & gas exploration & production company (no longer held at fiscal year-end), and Energen Corp., an oil & gas exploration & production company (no longer held at fiscal year-end).
| 28 |
|
PowerShares DWA Utilities Momentum Portfolio (PUI) (continued)
Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Electric Utilities | 32.7 | |||
Multi-Utilities | 31.8 | |||
Gas Utilities | 14.7 | |||
Integrated Telecommunication Services | 7.5 | |||
Water Utilities | 6.5 | |||
Oil & Gas Storage & Transportation | 3.6 | |||
Independent Power Producers & Energy Traders | 3.2 | |||
Money Market Fund Plus Other Assets Less Liabilities | (0.0) | |||
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
American Water Works Co., Inc. | 4.0 | |||
Duke Energy Corp. | 4.0 | |||
Westar Energy, Inc. | 3.8 | |||
Sempra Energy | 3.7 | |||
WEC Energy Group, Inc. | 3.7 | |||
SCANA Corp. | 3.7 | |||
Atmos Energy Corp. | 3.6 | |||
ONEOK, Inc. | 3.6 | |||
DTE Energy Co. | 3.6 | |||
CMS Energy Corp. | 3.5 | |||
Total | 37.2 |
* | Excluding money market fund holdings. |
| 29 |
|
PowerShares DWA Utilities Momentum Portfolio (PUI) (continued)
Growth of a $10,000 Investment
Fund Performance History as of April 30, 2016
1 Year | 3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years Cumulative | 10 Years Average Annualized | 10 Years | Fund Inception†† | |||||||||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||||||||||
Blended-Dorsey Wright® Utilities Technical Leaders Index† | 15.53 | % | 11.75 | % | 39.54 | % | 11.72 | % | 74.08 | % | 8.22 | % | 120.37 | % | 8.62 | % | 138.61 | % | ||||||||||||||||||||
S&P 500® Utilities Index | 13.67 | 9.38 | 30.86 | 12.23 | 78.07 | 8.66 | 129.45 | 8.58 | 137.68 | |||||||||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||||||||||
NAV Return | 14.86 | 11.03 | 36.86 | 10.84 | 67.28 | 7.43 | 104.80 | 7.83 | 120.82 | |||||||||||||||||||||||||||||
Market Price Return | 14.81 | 11.05 | 36.97 | 10.81 | 67.05 | 7.43 | 104.75 | 7.83 | 120.92 |
Fund Inception: October 26, 2005
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. The adviser has contractually agreed to waive fees and/or pay certain Fund expenses through August 31, 2017. According to the Fund’s current prospectus, the total gross annual operating expense ratio was indicated as 0.80% and the net annual operating expense ratio was indicated as 0.60%. 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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.
Blended-Index and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Blended-Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Blended-Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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 Blended-Dorsey Wright® Utilities Technical Leaders Index performance is comprised of the performance of the Dynamic Utilities IntellidexSM Index, the Fund’s previous underlying index, from Fund inception through the conversion date, February 19, 2014, followed by the performance of the Index, starting from the conversion date through April 30, 2016. |
†† | Fund, Blended-Index and Benchmark Index returns are based on the inception date of the Fund. |
| 30 |
|
PNQI | Manager’s Analysis | |
PowerShares NASDAQ Internet Portfolio (PNQI) |
As an index fund, the PowerShares NASDAQ Internet Portfolio (the “Fund”) is passively managed and attempts to track the returns of an underlying index. 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 of Internet software and service companies that comprise the Index. These companies include those involved in Internet-related services, including Internet access providers, Internet search engines, web hosting, website design and e-commerce.
The NASDAQ OMX Group, Inc. (the “Index Provider”) compiles, maintains and calculates the Index. Strictly in accordance with its guidelines and mandated procedures, the Index Provider selects constituents for the Index, which is designed to track the performance of the largest and most liquid U.S.-listed companies that are involved in Internet-related business. In order to be eligible for inclusion in the Index, in addition to being engaged in Internet-related business, a security must: be listed on NASDAQ, the NYSE or the NYSE MKT; have a minimum market capitalization of $200 million; have a minimum three-month average daily trading volume of 100,000 shares; have a minimum closing price of $3.00; be issued by a company that has not entered into a definitive agreement or other arrangement that would likely result in the security no longer being Index eligible; and may not be issued by a company currently in bankruptcy proceedings or that has annual financial statements with an audit opinion that is currently withdrawn. The Index Provider weights securities included in the Index according to a modified market capitalization methodology. The Fund generally invests in all of the securities comprising the Index in proportion to their weightings in the Index.
For the fiscal year ended April 30, 2016, on a market price basis, the Fund returned 5.79%. On a net asset value (“NAV”) basis, the Fund returned 5.81%. During the same time period, the Index returned 6.39%. During the fiscal year, the Fund fully replicated the components of the Index; therefore, the Fund’s performance, on a NAV basis, differed from the return of the Index primarily due to fees and operating expenses that the Fund incurred during the period.
During this same time period, the NASDAQ-100® Index (the “Benchmark Index”) returned (0.41)%. The Benchmark Index is an unmanaged index weighted by modified market capitalization based on the average performance of approximately 110 securities. The Fund provided this additional comparative benchmark because of its recognition in the marketplace and to help investors better understand how the investment results of the Fund compares to the performance of a broad-based market benchmark.
The performance of the Fund differed from the Benchmark Index in part because the Fund contains a set of companies engaged in Internet-related businesses, whereas the Benchmark Index
consists of the approximately 100 largest non-financial companies listed on the NASDAQ Stock Market.
Relative to the Benchmark Index, the Fund was most overweight in the internet software & services sub-industry and most underweight in the technology hardware storage & peripherals sub-industry during the fiscal year ended April 30, 2016. The majority of the Fund’s outperformance relative to the Benchmark Index during the period can be attributed to the Fund’s allocation to the technology hardware storage & peripherals sub-industry and to the internet retail sub-industry.
For the fiscal year ended April 30, 2016, the internet retail sub-industry contributed most significantly to the Fund’s return, followed by the specialized real estate investment trust (“REIT”) sub-industry. The internet software & services sub-industry was the only detracting sub-industry.
Positions that contributed most significantly to the Fund’s return included Amazon.com, Inc., a consumer discretionary company (portfolio average weight of 8.68%), and Facebook, Inc. Class A, an information technology company (portfolio average weight of 8.69%). Positions that detracted most significantly from the Fund’s return included Twitter, Inc., an information technology company (portfolio average weight of 3.18%), and JD.com, Inc. Sponsored ADR Class A, a consumer discretionary company (portfolio average weight of 4.02%).
Sub-Industry Breakdown (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Internet Software & Services | 59.2 | |||
Internet Retail | 36.0 | |||
Specialized REITs | 4.1 | |||
Alternative Carriers | 0.4 | |||
Casinos & Gaming | 0.1 | |||
Application Software | 0.1 | |||
Wireless Telecommunication Services | 0.1 | |||
Money Market Funds Plus Other Assets Less Liabilities | (0.0) |
| 31 |
|
PowerShares NASDAQ Internet Portfolio (PNQI) (continued)
Top Ten Fund Holdings* (% of the Fund’s Net Assets) as of April 30, 2016 | ||||
Security | ||||
Amazon.com, Inc. | 8.9 | |||
Baidu, Inc., Class A ADR | 8.4 | |||
Facebook, Inc., Class A | 8.2 | |||
Priceline Group, Inc. (The) | 8.0 | |||
Alphabet, Inc., Class C | 7.4 | |||
Yahoo!, Inc. | 4.3 | |||
Equinix, Inc. REIT | 4.1 | |||
eBay, Inc. | 3.9 | |||
JD.Com, Inc., Class A ADR | 3.7 | |||
Netflix, Inc. | 3.6 | |||
Total | 60.5 |
* | Excluding money market fund holdings. |
Growth of a $10,000 Investment Since Inception†
Fund Performance History as of April 30, 2016
1 Year | 3 Years Average Annualized | 3 Years Cumulative | 5 Years Average Annualized | 5 Years Cumulative | Fund Inception† | |||||||||||||||||||||||||
Index | Average Annualized | Cumulative | ||||||||||||||||||||||||||||
NASDAQ Internet IndexSM | 6.39 | % | 19.04 | % | 68.70 | % | 13.65 | % | 89.63 | % | 16.48 | % | 232.87 | % | ||||||||||||||||
NASDAQ-100® Index | (0.41 | ) | 16.06 | 56.33 | 13.98 | 92.34 | 12.04 | 145.04 | ||||||||||||||||||||||
Fund | ||||||||||||||||||||||||||||||
NAV Return | 5.81 | 18.39 | 65.94 | 13.09 | 84.97 | 15.87 | 219.39 | |||||||||||||||||||||||
Market Price Return | 5.79 | 18.38 | 65.88 | 13.06 | 84.74 | 15.63 | 214.24 |
| 32 |
|
PowerShares NASDAQ Internet Portfolio (PNQI) (continued)
Fund Inception: June 12, 2008
Performance quoted above 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 of the Fund (“Fund Shares”), when redeemed or sold, may be worth more or less than their original cost. Fund performance reflects any applicable fee waivers and/or expense reimbursements. Had the adviser not waived fees and/or reimbursed expenses currently or in the past, returns would have been lower. See current prospectus for more information. According to the Fund’s current prospectus, the 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 Market Price returns assume that dividends and capital gain distributions have been reinvested in the Fund at NAV and Market 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 and Benchmark Index performance results are based upon a hypothetical investment in their respective constituent securities. Index and Benchmark Index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index and Benchmark Index do not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown. In addition, the results 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.
† | Fund, Index and Benchmark Index returns are based on the inception date of the Fund. |
| 33 |
|
Schedule of Investments(a)
PowerShares DWA Basic Materials Momentum Portfolio (PYZ)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks—99.9% | ||||||||
Aluminum—4.0% | ||||||||
398,849 | Century Aluminum Co.(b) | $ | 3,517,848 | |||||
33,856 | Kaiser Aluminum Corp. | 3,210,565 | ||||||
|
| |||||||
6,728,413 | ||||||||
|
| |||||||
Commodity Chemicals—4.3% | ||||||||
87,289 | LyondellBasell Industries NV, Class A | 7,216,182 | ||||||
|
| |||||||
Diversified Chemicals—3.8% | ||||||||
84,940 | Eastman Chemical Co. | 6,487,717 | ||||||
|
| |||||||
Diversified Metals & Mining—4.0% | ||||||||
34,730 | Compass Minerals International, Inc. | 2,603,361 | ||||||
292,893 | Freeport-McMoRan, Inc. | 4,100,502 | ||||||
|
| |||||||
6,703,863 | ||||||||
|
| |||||||
Fertilizers & Agricultural Chemicals—3.5% | ||||||||
63,240 | Monsanto Co. | 5,924,323 | ||||||
|
| |||||||
Forest Products—1.1% | ||||||||
114,890 | Louisiana-Pacific Corp.(b) | 1,953,130 | ||||||
|
| |||||||
Gold—5.0% | ||||||||
152,635 | Newmont Mining Corp. | 5,337,646 | ||||||
48,491 | Royal Gold, Inc. | 3,036,506 | ||||||
|
| |||||||
8,374,152 | ||||||||
|
| |||||||
Industrial Gases—5.9% | ||||||||
40,477 | Air Products & Chemicals, Inc. | 5,905,189 | ||||||
34,410 | Praxair, Inc. | 4,041,799 | ||||||
|
| |||||||
9,946,988 | ||||||||
|
| |||||||
Oil & Gas Equipment & Services—1.0% | ||||||||
69,263 | US Silica Holdings, Inc. | 1,769,670 | ||||||
|
| |||||||
Paper Packaging—6.3% | ||||||||
73,107 | Avery Dennison Corp. | 5,308,299 | ||||||
121,642 | International Paper Co. | 5,263,449 | ||||||
|
| |||||||
10,571,748 | ||||||||
|
| |||||||
Paper Products—1.3% | ||||||||
32,667 | Neenah Paper, Inc. | 2,126,295 | ||||||
|
| |||||||
Precious Metals & Minerals—1.1% | ||||||||
152,464 | Stillwater Mining Co.(b) | 1,860,061 | ||||||
|
| |||||||
Silver—2.9% | ||||||||
594,890 | Coeur Mining, Inc.(b) | 4,818,609 | ||||||
|
| |||||||
Specialty Chemicals—41.2% | ||||||||
58,273 | Albemarle Corp. | 3,855,342 | ||||||
72,796 | Ashland, Inc. | 8,124,034 | ||||||
24,247 | Balchem Corp. | 1,487,796 | ||||||
57,174 | Celanese Corp., Series A | 4,042,202 | ||||||
48,112 | Chemtura Corp.(b) | 1,339,919 | ||||||
42,467 | Ecolab, Inc. | 4,882,856 | ||||||
59,760 | H.B. Fuller Co. | 2,672,467 | ||||||
45,069 | Innospec, Inc. | 2,179,537 | ||||||
52,139 | International Flavors & Fragrances, Inc. | 6,229,046 | ||||||
43,768 | Minerals Technologies, Inc. | 2,621,703 | ||||||
9,363 | NewMarket Corp. | 3,801,940 | ||||||
117,991 | PolyOne Corp. | 4,245,316 | ||||||
63,052 | PPG Industries, Inc. | 6,960,310 | ||||||
24,668 | Quaker Chemical Corp. | 2,196,932 |
Number of Shares | Value | |||||||
Common Stocks (continued) | ||||||||
Specialty Chemicals (continued) | ||||||||
69,317 | RPM International, Inc. | $ | 3,502,588 | |||||
51,774 | Sensient Technologies Corp. | 3,481,801 | ||||||
102,185 | W.R. Grace & Co.(b) | 7,835,546 | ||||||
|
| |||||||
69,459,335 | ||||||||
|
| |||||||
Steel—14.5% | ||||||||
639,413 | AK Steel Holding Corp.(b) | 2,992,453 | ||||||
155,311 | Allegheny Technologies, Inc. | 2,537,782 | ||||||
22,390 | Reliance Steel & Aluminum Co. | 1,656,188 | ||||||
81,347 | Schnitzer Steel Industries, Inc., Class A | 1,677,375 | ||||||
185,822 | Steel Dynamics, Inc. | 4,684,573 | ||||||
307,279 | SunCoke Energy, Inc. | 2,283,083 | ||||||
143,290 | TimkenSteel Corp. | 1,825,515 | ||||||
193,756 | United States Steel Corp. | 3,702,677 | ||||||
83,943 | Worthington Industries, Inc. | 3,168,848 | ||||||
|
| |||||||
24,528,494 | ||||||||
|
| |||||||
Total Common Stocks (Cost $154,435,729) | 168,468,980 | |||||||
|
| |||||||
Money Market Fund—0.1% | ||||||||
92,468 | Invesco Premier Portfolio—Institutional Class, 0.39%(c) (Cost $92,468) | 92,468 | ||||||
|
| |||||||
Total Investments (Cost $154,528,197)—100.0% | 168,561,448 | |||||||
Other assets less liabilities—(0.0)% | (64,028 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 168,497,420 | ||||||
|
|
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 34 |
|
Schedule of Investments(a)
PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks—100.0% | ||||||||
Airlines—11.5% | ||||||||
44,536 | Alaska Air Group, Inc. | $ | 3,136,671 | |||||
62,240 | Delta Air Lines, Inc. | 2,593,541 | ||||||
77,277 | Hawaiian Holdings, Inc.(b) | 3,251,043 | ||||||
36,509 | United Continental Holdings, Inc.(b) | 1,672,477 | ||||||
|
| |||||||
10,653,732 | ||||||||
|
| |||||||
Apparel Retail—12.8% | ||||||||
45,896 | Foot Locker, Inc. | 2,819,850 | ||||||
38,084 | L Brands, Inc. | 2,981,597 | ||||||
55,858 | Ross Stores, Inc. | 3,171,617 | ||||||
38,432 | TJX Cos., Inc. (The) | 2,913,914 | ||||||
|
| |||||||
11,886,978 | ||||||||
|
| |||||||
Apparel, Accessories & Luxury Goods—3.3% | ||||||||
36,058 | G-III Apparel Group Ltd.(b) | 1,631,624 | ||||||
83,927 | Vera Bradley, Inc.(b) | 1,472,080 | ||||||
|
| |||||||
3,103,704 | ||||||||
|
| |||||||
Auto Parts & Equipment—6.9% | ||||||||
22,719 | Drew Industries, Inc. | 1,472,873 | ||||||
19,672 | Lear Corp. | 2,264,837 | ||||||
33,989 | Visteon Corp. | 2,707,904 | ||||||
|
| |||||||
6,445,614 | ||||||||
|
| |||||||
Automotive Retail—7.9% | ||||||||
4,269 | AutoZone, Inc.(b) | 3,266,767 | ||||||
15,555 | O’Reilly Automotive, Inc.(b) | 4,085,987 | ||||||
|
| |||||||
7,352,754 | ||||||||
|
| |||||||
Cable & Satellite—3.1% | ||||||||
13,733 | Charter Communications, Inc., Class A(b) | 2,914,692 | ||||||
|
| |||||||
Casinos & Gaming—1.8% | ||||||||
165,976 | Scientific Games Corp., Class A(b) | 1,646,482 | ||||||
|
| |||||||
Consumer Electronics—1.7% | ||||||||
23,965 | Universal Electronics, Inc.(b) | 1,591,516 | ||||||
|
| |||||||
Distributors—2.0% | ||||||||
22,638 | Core-Mark Holding Co., Inc. | 1,848,619 | ||||||
|
| |||||||
Footwear—7.9% | ||||||||
59,862 | NIKE, Inc., Class B | 3,528,266 | ||||||
114,916 | Skechers U.S.A., Inc., Class A(b) | 3,797,974 | ||||||
|
| |||||||
7,326,240 | ||||||||
|
| |||||||
Home Entertainment Software—5.1% | ||||||||
48,511 | Electronic Arts, Inc.(b) | 3,000,406 | ||||||
52,028 | Take-Two Interactive Software, Inc.(b) | 1,778,317 | ||||||
|
| |||||||
4,778,723 | ||||||||
|
| |||||||
Home Improvement Retail—2.8% | ||||||||
19,734 | Home Depot, Inc. (The) | 2,642,185 | ||||||
|
| |||||||
Household Appliances—2.4% | ||||||||
12,992 | Whirlpool Corp. | 2,262,427 | ||||||
|
| |||||||
Hypermarkets & Super Centers—2.4% | ||||||||
14,849 | Costco Wholesale Corp. | 2,199,582 | ||||||
|
| |||||||
Internet Retail—1.9% | ||||||||
44,030 | Liberty Ventures, Series A(b) | 1,761,200 | ||||||
|
|
Number of Shares | Value | |||||||
Common Stocks (continued) | ||||||||
Leisure Facilities—4.1% | ||||||||
35,305 | Six Flags Entertainment Corp. | $ | 2,120,065 | |||||
12,738 | Vail Resorts, Inc. | 1,651,355 | ||||||
|
| |||||||
3,771,420 | ||||||||
|
| |||||||
Movies & Entertainment—2.7% | ||||||||
23,934 | Walt Disney Co. (The) | 2,471,425 | ||||||
|
| |||||||
Restaurants—11.3% | ||||||||
14,806 | Cracker Barrel Old Country Store, Inc. | 2,167,747 | ||||||
28,466 | Domino’s Pizza, Inc. | 3,440,970 | ||||||
29,592 | Papa John’s International, Inc. | 1,674,611 | ||||||
77,005 | Ruth’s Hospitality Group, Inc. | 1,222,839 | ||||||
57,664 | Sonic Corp. | 1,981,912 | ||||||
|
| |||||||
10,488,079 | ||||||||
|
| |||||||
Specialty Stores—6.3% | ||||||||
36,102 | Tractor Supply Co. | 3,417,415 | ||||||
11,682 | Ulta Salon, Cosmetics & Fragrance, Inc.(b) | 2,433,127 | ||||||
|
| |||||||
5,850,542 | ||||||||
|
| |||||||
Tires & Rubber—2.1% | ||||||||
68,356 | Goodyear Tire & Rubber Co. (The) | 1,980,273 | ||||||
|
| |||||||
Total Common Stocks (Cost $94,610,217) | 92,976,187 | |||||||
|
| |||||||
Money Market Fund—0.1% | ||||||||
106,692 | Invesco Premier Portfolio—Institutional Class, 0.39%(c) (Cost $106,692) | 106,692 | ||||||
|
| |||||||
Total Investments (Cost $94,716,909)—100.1% | 93,082,879 | |||||||
Other assets less liabilities—(0.1)% | (118,484 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 92,964,395 | ||||||
|
|
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 35 |
|
Schedule of Investments(a)
PowerShares DWA Consumer Staples Momentum Portfolio (PSL)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks—100.0% | ||||||||
Agricultural Products—3.0% | ||||||||
78,537 | Ingredion, Inc. | $ | 9,038,823 | |||||
|
| |||||||
Brewers—2.0% | ||||||||
63,830 | Molson Coors Brewing Co., Class B | 6,104,063 | ||||||
|
| |||||||
Distillers & Vintners—7.6% | ||||||||
88,365 | Brown-Forman Corp., Class B | 8,511,317 | ||||||
89,777 | Constellation Brands, Inc., Class A | 14,010,598 | ||||||
|
| |||||||
22,521,915 | ||||||||
|
| |||||||
Education Services—1.4% | ||||||||
62,060 | Bright Horizons Family Solutions, Inc.(b) | 4,072,377 | ||||||
|
| |||||||
Environmental & Facilities Services—1.6% | ||||||||
178,913 | Rollins, Inc. | 4,807,392 | ||||||
|
| |||||||
Food Distributors—0.9% | ||||||||
93,337 | SpartanNash Co. | 2,585,435 | ||||||
|
| |||||||
Health Care Services—2.6% | ||||||||
29,497 | Chemed Corp. | 3,828,121 | ||||||
76,119 | Providence Service Corp. (The)(b) | 3,793,771 | ||||||
|
| |||||||
7,621,892 | ||||||||
|
| |||||||
Household Appliances—1.6% | ||||||||
47,922 | Helen of Troy Ltd.(b) | 4,769,677 | ||||||
|
| |||||||
Household Products—11.5% | ||||||||
157,287 | Church & Dwight Co., Inc. | 14,580,505 | ||||||
82,863 | Colgate-Palmolive Co. | 5,876,644 | ||||||
43,852 | Kimberly-Clark Corp. | 5,489,832 | ||||||
49,013 | Spectrum Brands Holdings, Inc. | 5,567,877 | ||||||
27,297 | WD-40 Co. | 2,792,483 | ||||||
|
| |||||||
34,307,341 | ||||||||
|
| |||||||
Industrial Machinery—5.5% | ||||||||
59,401 | Snap-on, Inc. | 9,461,391 | ||||||
62,083 | Stanley Black & Decker, Inc. | 6,948,330 | ||||||
|
| |||||||
16,409,721 | ||||||||
|
| |||||||
Internet Software & Services—3.0% | ||||||||
106,862 | Stamps.com, Inc.(b) | 8,801,154 | ||||||
|
| |||||||
Packaged Foods & Meats—26.2% | ||||||||
70,707 | Calavo Growers, Inc. | 4,042,319 | ||||||
91,566 | Cal-Maine Foods, Inc. | 4,647,890 | ||||||
221,502 | Hormel Foods Corp. | 8,538,902 | ||||||
43,937 | J & J Snack Foods Corp. | 4,443,349 | ||||||
51,041 | JM Smucker Co. (The) | 6,481,186 | ||||||
�� | 66,040 | John B. Sanfilippo & Son, Inc. | 3,653,993 | |||||
89,142 | Kellogg Co. | 6,846,997 | ||||||
121,635 | McCormick & Co., Inc. | 11,406,930 | ||||||
267,201 | Pilgrim’s Pride Corp.(b) | 7,190,379 | ||||||
88,710 | Pinnacle Foods, Inc. | 3,778,159 | ||||||
95,279 | Post Holdings, Inc., Class A(b) | 6,844,844 | ||||||
150,571 | Tyson Foods, Inc., Class A | 9,910,583 | ||||||
|
| |||||||
77,785,531 | ||||||||
|
| |||||||
Personal Products—8.6% | ||||||||
891,002 | Avon Products, Inc. | 4,196,619 | ||||||
143,285 | Coty, Inc., Class A | 4,355,864 | ||||||
109,372 | Estee Lauder Cos., Inc. (The), Class A | 10,485,494 |
Number of Shares | Value | |||||||
Common Stocks (continued) | ||||||||
Personal Products (continued) | ||||||||
112,711 | Herbalife Ltd.(b) | $ | 6,531,603 | |||||
|
| |||||||
25,569,580 | ||||||||
|
| |||||||
Soft Drinks—8.2% | ||||||||
104,571 | Dr Pepper Snapple Group, Inc. | 9,506,550 | ||||||
102,784 | Monster Beverage Corp.(b) | 14,823,508 | ||||||
|
| |||||||
24,330,058 | ||||||||
|
| |||||||
Specialized Consumer Services—5.9% | ||||||||
179,509 | ServiceMaster Global Holdings, Inc.(b) | 6,878,785 | ||||||
812,119 | Weight Watchers International, Inc.(b) | 10,516,941 | ||||||
|
| |||||||
17,395,726 | ||||||||
|
| |||||||
Tobacco—10.4% | ||||||||
256,991 | Altria Group, Inc. | 16,115,906 | ||||||
298,545 | Reynolds American, Inc. | 14,807,832 | ||||||
|
| |||||||
30,923,738 | ||||||||
|
| |||||||
Total Common Stocks (Cost $287,932,387) | 297,044,423 | |||||||
|
| |||||||
Money Market Fund—0.1% | ||||||||
237,677 | Invesco Premier Portfolio—Institutional Class, 0.39%(c) (Cost $237,677) | 237,677 | ||||||
|
| |||||||
Total Investments (Cost $288,170,064)—100.1% | 297,282,100 | |||||||
Other assets less liabilities—(0.1)% | (212,081 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 297,070,019 | ||||||
|
|
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 36 |
|
Schedule of Investments(a)
PowerShares DWA Energy Momentum Portfolio (PXI)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks—99.9% | ||||||||
Coal & Consumable Fuels—3.7% | ||||||||
303,482 | CONSOL Energy, Inc. | $ | 4,567,404 | |||||
|
| |||||||
Integrated Oil & Gas—8.8% | ||||||||
35,364 | Chevron Corp. | 3,613,494 | ||||||
36,961 | Exxon Mobil Corp. | 3,267,352 | ||||||
54,159 | Occidental Petroleum Corp. | 4,151,287 | ||||||
|
| |||||||
11,032,133 | ||||||||
|
| |||||||
Oil & Gas Drilling—10.3% | ||||||||
274,333 | Atwood Oceanics, Inc. | 2,650,057 | ||||||
131,838 | Diamond Offshore Drilling, Inc. | 3,198,390 | ||||||
52,952 | Helmerich & Payne, Inc. | 3,501,186 | ||||||
181,052 | Patterson-UTI Energy, Inc. | 3,575,777 | ||||||
|
| |||||||
12,925,410 | ||||||||
|
| |||||||
Oil & Gas Equipment & Services—7.5% | ||||||||
41,099 | Dril-Quip, Inc.(b) | 2,664,037 | ||||||
92,633 | Halliburton Co. | 3,826,669 | ||||||
192,578 | RPC, Inc. | 2,911,780 | ||||||
|
| |||||||
9,402,486 | ||||||||
|
| |||||||
Oil & Gas Exploration & Production—55.5% | ||||||||
416,477 | Bill Barrett Corp.(b) | 3,315,157 | ||||||
99,206 | Carrizo Oil & Gas, Inc.(b) | 3,508,916 | ||||||
47,281 | Concho Resources, Inc.(b) | 5,492,634 | ||||||
57,505 | Diamondback Energy, Inc.(b) | 4,978,783 | ||||||
45,136 | EOG Resources, Inc. | 3,729,136 | ||||||
99,874 | Newfield Exploration Co.(b) | 3,620,432 | ||||||
411,029 | Oasis Petroleum, Inc.(b) | 3,982,871 | ||||||
171,948 | Parsley Energy, Inc., Class A(b) | 4,027,022 | ||||||
67,567 | PDC Energy, Inc.(b) | 4,242,532 | ||||||
32,580 | Pioneer Natural Resources Co. | 5,411,538 | ||||||
205,482 | Rice Energy, Inc.(b) | 3,556,893 | ||||||
117,560 | RSP Permian, Inc.(b) | 3,598,512 | ||||||
429,315 | Sanchez Energy Corp.(b) | 3,859,542 | ||||||
192,598 | SM Energy Co. | 6,001,354 | ||||||
452,945 | Whiting Petroleum Corp.(b) | 5,435,340 | ||||||
497,054 | WPX Energy, Inc.(b) | 4,801,542 | ||||||
|
| |||||||
69,562,204 | ||||||||
|
| |||||||
Oil & Gas Refining & Marketing—6.4% | ||||||||
42,908 | Phillips 66 | 3,523,176 | ||||||
56,905 | Tesoro Corp. | 4,534,759 | ||||||
|
| |||||||
8,057,935 | ||||||||
|
| |||||||
Oil & Gas Storage & Transportation—7.7% | ||||||||
133,101 | Cheniere Energy, Inc.(b) | 5,174,967 | ||||||
111,247 | Targa Resources Corp. | 4,501,054 | ||||||
|
| |||||||
9,676,021 | ||||||||
|
| |||||||
Total Common Stocks (Cost $106,659,733) | 125,223,593 | |||||||
|
| |||||||
Number of Shares | Value | |||||||
Money Market Fund—0.1% | ||||||||
87,876 | Invesco Premier Portfolio—Institutional Class, 0.39%(c) (Cost $87,876) | $ | 87,876 | |||||
|
| |||||||
Total Investments (Cost $106,747,609)—100.0% | 125,311,469 | |||||||
Other assets less liabilities—(0.0)% | (25,016 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 125,286,453 | ||||||
|
|
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 37 |
|
Schedule of Investments(a)
PowerShares DWA Financial Momentum Portfolio (PFI)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—99.9% | ||||||||
Data Processing & Outsourced Services—4.4% | ||||||||
6,591 | MasterCard, Inc., Class A | $ | 639,261 | |||||
8,378 | Visa, Inc., Class A | 647,117 | ||||||
|
| |||||||
1,286,378 | ||||||||
|
| |||||||
Diversified Banks—2.1% | ||||||||
12,212 | Wells Fargo & Co. | 610,356 | ||||||
|
| |||||||
Diversified REITs—3.6% | ||||||||
19,776 | Duke Realty Corp. REIT | 432,501 | ||||||
6,651 | PS Business Parks, Inc. REIT | 636,900 | ||||||
|
| |||||||
1,069,401 | ||||||||
|
| |||||||
Industrial REITs—1.7% | ||||||||
21,708 | First Industrial Realty Trust, Inc. REIT | 497,982 | ||||||
|
| |||||||
Life & Health Insurance—3.9% | ||||||||
31,125 | CNO Financial Group, Inc. | 571,766 | ||||||
9,897 | Torchmark Corp. | 572,938 | ||||||
|
| |||||||
1,144,704 | ||||||||
|
| |||||||
Multi-line Insurance—2.3% | ||||||||
11,922 | American International Group, Inc. | 665,486 | ||||||
|
| |||||||
Office REITs—1.7% | ||||||||
10,559 | Highwoods Properties, Inc. REIT | 493,422 | ||||||
|
| |||||||
Property & Casualty Insurance—11.5% | ||||||||
10,498 | Allstate Corp. (The) | 682,895 | ||||||
8,149 | Axis Capital Holdings Ltd. | 434,097 | ||||||
4,554 | Erie Indemnity Co., Class A | 429,852 | ||||||
1,061 | Markel Corp.(b) | 953,956 | ||||||
27,166 | XL Group PLC | 889,143 | ||||||
|
| |||||||
3,389,943 | ||||||||
|
| |||||||
Regional Banks—10.5% | ||||||||
7,825 | Eagle Bancorp, Inc.(b) | 396,727 | ||||||
10,327 | Home BancShares, Inc. | 443,958 | ||||||
7,652 | Pinnacle Financial Partners, Inc. | 376,249 | ||||||
4,423 | Signature Bank(b) | 609,622 | ||||||
14,350 | Webster Financial Corp. | 525,784 | ||||||
19,876 | Western Alliance Bancorp(b) | 727,064 | ||||||
|
| |||||||
3,079,404 | ||||||||
|
| |||||||
Residential REITs—12.3% | ||||||||
8,017 | Camden Property Trust REIT | 647,212 | ||||||
10,238 | Education Realty Trust, Inc. REIT | 407,165 | ||||||
8,476 | Equity LifeStyle Properties, Inc. REIT | 580,521 | ||||||
7,606 | Equity Residential REIT | 517,741 | ||||||
5,567 | Mid-America Apartment Communities, Inc. REIT | 532,818 | ||||||
7,247 | Post Properties, Inc. REIT | 415,688 | ||||||
7,866 | Sun Communities, Inc. REIT | 533,865 | ||||||
|
| |||||||
3,635,010 | ||||||||
|
| |||||||
Retail REITs—28.2% | ||||||||
8,155 | Federal Realty Investment Trust REIT | 1,240,213 | ||||||
48,944 | General Growth Properties, Inc. REIT | 1,371,900 | ||||||
12,801 | Macerich Co. (The) REIT | 973,900 | ||||||
17,226 | Realty Income Corp. REIT | 1,019,779 | ||||||
15,016 | Regency Centers Corp. REIT | 1,106,679 | ||||||
6,451 | Simon Property Group, Inc. REIT | 1,297,748 | ||||||
22,227 | Tanger Factory Outlet Centers, Inc. REIT | 779,723 | ||||||
13,848 | Weingarten Realty Investors REIT | 511,268 | ||||||
|
| |||||||
8,301,210 | ||||||||
|
|
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Specialized Finance—5.0% | ||||||||
6,653 | MarketAxess Holdings, Inc. | $ | 816,722 | |||||
6,971 | Moody’s Corp. | 667,264 | ||||||
|
| |||||||
1,483,986 | ||||||||
|
| |||||||
Specialized REITs—12.7% | ||||||||
21,366 | CubeSmart REIT | 632,647 | ||||||
6,562 | EPR Properties REIT | 432,305 | ||||||
11,811 | Extra Space Storage, Inc. REIT | 1,003,344 | ||||||
5,167 | Public Storage REIT | 1,264,933 | ||||||
3,799 | Sovran Self Storage, Inc. REIT | 403,530 | ||||||
|
| |||||||
3,736,759 | ||||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $28,060,276) | 29,394,041 | |||||||
|
| |||||||
Money Market Fund—0.2% | ||||||||
65,095 | Invesco Premier Portfolio—Institutional Class, 0.39%(c) (Cost $65,095) | 65,095 | ||||||
|
| |||||||
Total Investments (Cost $28,125,371)—100.1% | 29,459,136 | |||||||
Other assets less liabilities—(0.1)% | (41,149 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 29,417,987 | ||||||
|
|
Investment Abbreviations:
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 38 |
|
Schedule of Investments(a)
PowerShares DWA Healthcare Momentum Portfolio (PTH)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks—100.1% | ||||||||
Biotechnology—17.2% | ||||||||
32,147 | BioMarin Pharmaceutical, Inc.(b) | $ | 2,722,208 | |||||
23,779 | Celgene Corp.(b) | 2,458,986 | ||||||
54,695 | Emergent BioSolutions, Inc.(b) | 2,106,852 | ||||||
24,677 | Ligand Pharmaceuticals, Inc.(b) | 2,982,709 | ||||||
144,639 | OPKO Health, Inc.(b) | 1,554,869 | ||||||
134,438 | OvaScience, Inc.(b) | 1,126,591 | ||||||
|
| |||||||
12,952,215 | ||||||||
|
| |||||||
Health Care Equipment—27.2% | ||||||||
19,478 | Becton, Dickinson and Co. | 3,141,022 | ||||||
142,656 | Boston Scientific Corp.(b) | 3,127,019 | ||||||
37,972 | Cantel Medical Corp. | 2,543,744 | ||||||
34,050 | Cynosure, Inc., Class A(b) | 1,666,407 | ||||||
36,691 | Inogen, Inc.(b) | 1,792,722 | ||||||
24,879 | Integra LifeSciences Holdings Corp.(b) | 1,761,931 | ||||||
4,021 | Intuitive Surgical, Inc.(b) | 2,518,594 | ||||||
46,173 | Masimo Corp.(b) | 2,001,600 | ||||||
32,105 | Orthofix International NV(b) | 1,404,915 | ||||||
367,090 | TransEnterix, Inc.(b) | 550,635 | ||||||
|
| |||||||
20,508,589 | ||||||||
|
| |||||||
Health Care Facilities—8.4% | ||||||||
71,901 | Ensign Group, Inc. (The) | 1,622,086 | ||||||
33,937 | HCA Holdings, Inc.(b) | 2,736,001 | ||||||
40,511 | Surgical Care Affiliates, Inc.(b) | 1,958,707 | ||||||
|
| |||||||
6,316,794 | ||||||||
|
| |||||||
Health Care Services—3.8% | ||||||||
55,517 | Amedisys, Inc.(b) | 2,858,570 | ||||||
|
| |||||||
Health Care Supplies—12.7% | ||||||||
28,361 | Align Technology, Inc.(b) | 2,047,381 | ||||||
21,877 | Cooper Cos., Inc. (The) | 3,348,931 | ||||||
82,945 | Spectranetics Corp. (The)(b) | 1,410,065 | ||||||
39,197 | West Pharmaceutical Services, Inc. | 2,790,826 | ||||||
|
| |||||||
9,597,203 | ||||||||
|
| |||||||
Life Sciences Tools & Services—13.0% | ||||||||
21,276 | Charles River Laboratories International, Inc.(b) | 1,686,549 | ||||||
29,228 | PAREXEL International Corp.(b) | 1,785,831 | ||||||
50,706 | PRA Health Sciences, Inc.(b) | 2,406,000 | ||||||
32,449 | Quintiles Transnational Holdings, Inc.(b) | 2,241,252 | ||||||
61,372 | VWR Corp.(b) | 1,634,950 | ||||||
|
| |||||||
9,754,582 | ||||||||
|
| |||||||
Managed Health Care—9.7% | ||||||||
24,062 | Aetna, Inc. | 2,701,441 | ||||||
22,320 | UnitedHealth Group, Inc. | 2,939,097 | ||||||
18,421 | WellCare Health Plans, Inc.(b) | 1,657,706 | ||||||
|
| |||||||
7,298,244 | ||||||||
|
| |||||||
Pharmaceuticals—8.1% | ||||||||
186,853 | Chelsea Therapeutics International Ltd.(b) | 14,948 | ||||||
109,955 | Innoviva, Inc. | 1,356,845 | ||||||
85,202 | Omeros Corp.(b) | 1,128,926 | ||||||
34,876 | Prestige Brands Holdings, Inc.(b) | 1,980,259 | ||||||
92,735 | Supernus Pharmaceuticals, Inc.(b) | 1,591,333 | ||||||
|
| |||||||
6,072,311 | ||||||||
|
| |||||||
Total Common Stocks (Cost $73,116,734) | 75,358,508 | |||||||
|
|
Number of Shares | Value | |||||||
Money Market Fund—0.1% | ||||||||
106,423 | Invesco Premier Portfolio—Institutional Class, 0.39%(c) (Cost $106,423) | $ | 106,423 | |||||
|
| |||||||
Total Investments (Cost $73,223,157)—100.2% | 75,464,931 | |||||||
Other assets less liabilities—(0.2)% | (133,167 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 75,331,764 | ||||||
|
|
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 39 |
|
Schedule of Investments(a)
PowerShares DWA Industrials Momentum Portfolio (PRN)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks—99.9% | ||||||||
Aerospace & Defense—20.4% | ||||||||
7,898 | HEICO Corp. | $ | 484,226 | |||||
7,799 | Honeywell International, Inc. | 891,192 | ||||||
4,872 | Huntington Ingalls Industries, Inc. | 705,319 | ||||||
9,136 | Lockheed Martin Corp. | 2,123,024 | ||||||
4,933 | Northrop Grumman Corp. | 1,017,480 | ||||||
9,022 | Raytheon Co. | 1,139,930 | ||||||
10,424 | TransDigm Group, Inc.(b) | 2,375,317 | ||||||
|
| |||||||
8,736,488 | ||||||||
|
| |||||||
Agricultural & Farm Machinery—1.6% | ||||||||
8,235 | Toro Co. (The) | 711,916 | ||||||
|
| |||||||
Air Freight & Logistics—0.8% | ||||||||
26,195 | Air Transport Services Group, Inc.(b) | 369,088 | ||||||
|
| |||||||
Application Software—1.5% | ||||||||
5,879 | Fair Isaac Corp. | 627,348 | ||||||
|
| |||||||
Building Products—12.4% | ||||||||
22,045 | A.O. Smith Corp. | 1,702,315 | ||||||
18,360 | Fortune Brands Home & Security, Inc. | 1,017,328 | ||||||
8,015 | Lennox International, Inc. | 1,081,624 | ||||||
34,165 | Masco Corp. | 1,049,207 | ||||||
10,032 | Patrick Industries, Inc.(b) | 459,967 | ||||||
|
| |||||||
5,310,441 | ||||||||
|
| |||||||
Commercial Printing—1.8% | ||||||||
12,540 | Deluxe Corp. | 787,261 | ||||||
|
| |||||||
Commodity Chemicals—1.1% | ||||||||
10,748 | Trinseo SA(b) | 459,907 | ||||||
|
| |||||||
Construction & Engineering—2.0% | ||||||||
17,809 | EMCOR Group, Inc. | 863,380 | ||||||
|
| |||||||
Construction Materials—4.6% | ||||||||
12,900 | Eagle Materials, Inc. | 956,148 | ||||||
16,195 | US Concrete, Inc.(b) | 1,000,203 | ||||||
|
| |||||||
1,956,351 | ||||||||
|
| |||||||
Data Processing & Outsourced Services—5.6% | ||||||||
18,470 | Convergys Corp. | 489,455 | ||||||
13,009 | CSG Systems International, Inc. | 577,339 | ||||||
10,351 | Fiserv, Inc.(b) | 1,011,500 | ||||||
7,420 | Syntel, Inc.(b) | 315,573 | ||||||
|
| |||||||
2,393,867 | ||||||||
|
| |||||||
Distributors—1.3% | ||||||||
6,482 | Pool Corp. | 566,592 | ||||||
|
| |||||||
Diversified Support Services—3.2% | ||||||||
9,984 | Cintas Corp. | 896,363 | ||||||
13,103 | Healthcare Services Group, Inc. | 495,949 | ||||||
|
| |||||||
1,392,312 | ||||||||
|
| |||||||
Electrical Components & Equipment—4.8% | ||||||||
42,490 | AMETEK, Inc. | 2,043,344 | ||||||
|
| |||||||
Electronic Components—1.8% | ||||||||
6,597 | Littelfuse, Inc. | 768,419 | ||||||
|
| |||||||
Health Care Services—2.4% | ||||||||
28,965 | AMN Healthcare Services, Inc.(b) | 1,028,547 | ||||||
|
|
Number of Shares | Value | |||||||
Common Stocks (continued) | ||||||||
Industrial Conglomerates—11.3% | ||||||||
5,630 | 3M Co. | $ | 942,350 | |||||
5,247 | Carlisle Cos., Inc. | 534,669 | ||||||
15,335 | Danaher Corp. | 1,483,661 | ||||||
10,631 | Roper Technologies, Inc. | 1,872,013 | ||||||
|
| |||||||
4,832,693 | ||||||||
|
| |||||||
Industrial Machinery—4.8% | ||||||||
9,578 | IDEX Corp. | 784,438 | ||||||
8,810 | Illinois Tool Works, Inc. | 920,821 | ||||||
6,622 | John Bean Technologies Corp. | 345,271 | ||||||
|
| |||||||
2,050,530 | ||||||||
|
| |||||||
Internet Software & Services—1.2% | ||||||||
5,991 | Cimpress NV (Netherlands)(b) | 526,429 | ||||||
|
| |||||||
IT Consulting & Other Services—6.9% | ||||||||
13,513 | Accenture PLC, Class A | 1,525,888 | ||||||
19,757 | Booz Allen Hamilton Holding Corp. | 544,701 | ||||||
10,349 | Gartner, Inc.(b) | 902,122 | ||||||
|
| |||||||
2,972,711 | ||||||||
|
| |||||||
Leisure Products—3.3% | ||||||||
42,814 | Smith & Wesson Holding Corp.(b) | 934,630 | ||||||
7,340 | Sturm Ruger & Co., Inc. | 469,980 | ||||||
|
| |||||||
1,404,610 | ||||||||
|
| |||||||
Specialty Chemicals—5.4% | ||||||||
8,139 | Sherwin-Williams Co. (The) | 2,338,416 | ||||||
|
| |||||||
Trading Companies & Distributors—1.7% | ||||||||
5,311 | Watsco, Inc. | 714,170 | ||||||
|
| |||||||
Total Common Stocks (Cost $40,828,881) | 42,854,820 | |||||||
|
| |||||||
Money Market Fund—0.2% | ||||||||
67,058 | Invesco Premier Portfolio—Institutional Class, 0.39%(c) (Cost $67,058) | 67,058 | ||||||
|
| |||||||
Total Investments (Cost $40,895,939)—100.1% | 42,921,878 | |||||||
Other assets less liabilities—(0.1)% | (45,594 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 42,876,284 | ||||||
|
|
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(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. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 40 |
|
Schedule of Investments(a)
PowerShares DWA Technology Momentum Portfolio (PTF)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.0% | ||||||||
Alternative Carriers—5.9% | ||||||||
129,267 | Cogent Communications Group, Inc. | $ | 5,002,633 | |||||
111,660 | Level 3 Communications, Inc.(b) | 5,835,351 | ||||||
|
| |||||||
10,837,984 | ||||||||
|
| |||||||
Application Software—29.0% | ||||||||
65,457 | Adobe Systems, Inc.(b) | 6,167,358 | ||||||
68,279 | Blackbaud, Inc. | 4,217,594 | ||||||
282,377 | Cadence Design Systems, Inc.(b) | 6,548,323 | ||||||
96,046 | Ebix, Inc. | 4,621,733 | ||||||
120,323 | Ellie Mae, Inc.(b) | 10,059,003 | ||||||
65,484 | Intuit, Inc. | 6,606,681 | ||||||
136,679 | Paycom Software, Inc.(b) | 5,222,505 | ||||||
48,788 | Ultimate Software Group, Inc. (The)(b) | 9,591,233 | ||||||
|
| |||||||
53,034,430 | ||||||||
|
| |||||||
Communications Equipment—5.1% | ||||||||
137,620 | CommScope Holding, Inc.(b) | 4,185,024 | ||||||
63,534 | Harris Corp. | 5,083,356 | ||||||
|
| |||||||
9,268,380 | ||||||||
|
| |||||||
Data Processing & Outsourced Services—5.8% | ||||||||
61,919 | Jack Henry & Associates, Inc. | 5,017,296 | ||||||
189,248 | Sabre Corp. | 5,478,730 | ||||||
|
| |||||||
10,496,026 | ||||||||
|
| |||||||
Electronic Components—5.6% | ||||||||
183,016 | Amphenol Corp., Class A | 10,217,783 | ||||||
|
| |||||||
Integrated Telecommunication Services—1.7% | ||||||||
43,181 | Atlantic Tele-Network, Inc. | 3,105,146 | ||||||
|
| |||||||
Internet Software & Services—11.1% | ||||||||
7,517 | Alphabet, Inc., Class A(b) | 5,321,134 | ||||||
69,733 | Facebook, Inc., Class A(b) | 8,199,206 | ||||||
77,735 | VeriSign, Inc.(b)(c) | 6,716,304 | ||||||
|
| |||||||
20,236,644 | ||||||||
|
| |||||||
IT Consulting & Other Services—8.3% | ||||||||
37,031 | CACI International, Inc., Class A(b) | 3,560,531 | ||||||
82,784 | Cognizant Technology Solutions Corp., Class A(b) | 4,832,102 | ||||||
206,430 | Computer Sciences Corp. | 6,839,026 | ||||||
|
| |||||||
15,231,659 | ||||||||
|
| |||||||
Semiconductors—13.3% | ||||||||
169,153 | Cirrus Logic, Inc.(b) | 6,106,423 | ||||||
75,951 | First Solar, Inc.(b) | 4,241,104 | ||||||
253,546 | MaxLinear, Inc., Class A(b) | 4,246,896 | ||||||
86,996 | Monolithic Power Systems, Inc. | 5,430,290 | ||||||
357,554 | NeoPhotonics Corp.(b) | 4,287,072 | ||||||
|
| |||||||
24,311,785 | ||||||||
|
| |||||||
Specialized REITs—6.2% | ||||||||
100,947 | CyrusOne, Inc. REIT | 4,454,791 | ||||||
21,023 | Equinix, Inc. REIT | 6,944,948 | ||||||
|
| |||||||
11,399,739 | ||||||||
|
| |||||||
Systems Software—2.0% | ||||||||
187,291 | Rubicon Project, Inc. (The)(b) | 3,627,827 | ||||||
|
|
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Technology Distributors—3.8% | ||||||||
96,458 | CDW Corp. | $ | 3,713,633 | |||||
38,953 | SYNNEX Corp. | 3,216,349 | ||||||
|
| |||||||
6,929,982 | ||||||||
|
| |||||||
Technology Hardware, Storage & Peripherals—2.2% | ||||||||
104,078 | Cray, Inc.(b) | 3,941,434 | ||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $180,373,586) | 182,638,819 | |||||||
|
| |||||||
Money Market Fund—0.1% | ||||||||
191,350 | Invesco Premier Portfolio—Institutional Class, 0.39%(d) (Cost $191,350) | 191,350 | ||||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $180,564,936)—100.1% | 182,830,169 | |||||||
|
| |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—0.0% | ||||||||
18,250 | Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(d)(e) (Cost $18,250) | 18,250 | ||||||
|
| |||||||
Total Investments (Cost $180,583,186)—100.1% | 182,848,419 | |||||||
Other assets less liabilities—(0.1)% | (225,167 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 182,623,252 | ||||||
|
|
Investment Abbreviations:
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | Non-income producing security. |
(c) | All or a portion of this security was out on loan at April 30, 2016. |
(d) | The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
(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. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 41 |
|
Schedule of Investments(a)
PowerShares DWA Utilities Momentum Portfolio (PUI)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks—100.0% | ||||||||
Electric Utilities—32.7% | ||||||||
67,399 | Alliant Energy Corp. | $ | 4,752,977 | |||||
95,578 | American Electric Power Co., Inc. | 6,069,203 | ||||||
101,359 | Duke Energy Corp. | 7,985,062 | ||||||
124,681 | Eversource Energy | 7,036,996 | ||||||
67,966 | IDACORP, Inc. | 4,943,167 | ||||||
74,966 | MGE Energy, Inc. | 3,737,055 | ||||||
58,914 | NextEra Energy, Inc. | 6,927,108 | ||||||
171,076 | PNM Resources, Inc. | 5,419,688 | ||||||
113,104 | Portland General Electric Co. | 4,492,491 | ||||||
146,996 | Westar Energy, Inc. | 7,586,464 | ||||||
170,629 | Xcel Energy, Inc. | 6,830,279 | ||||||
|
| |||||||
65,780,490 | ||||||||
|
| |||||||
Gas Utilities—14.7% | ||||||||
101,199 | Atmos Energy Corp. | 7,341,988 | ||||||
69,691 | Chesapeake Utilities Corp. | 4,148,008 | ||||||
75,430 | ONE Gas, Inc. | 4,410,392 | ||||||
66,581 | Spire, Inc. | 4,258,521 | ||||||
115,626 | UGI Corp. | 4,652,790 | ||||||
70,445 | WGL Holdings, Inc. | 4,782,511 | ||||||
|
| |||||||
29,594,210 | ||||||||
|
| |||||||
Independent Power Producers & Energy Traders—3.2% | ||||||||
430,267 | NRG Energy, Inc. | 6,497,032 | ||||||
|
| |||||||
Integrated Telecommunication Services—7.5% | ||||||||
174,943 | Consolidated Communications Holdings, Inc. | 4,135,652 | ||||||
111,924 | Verizon Communications, Inc. | 5,701,409 | ||||||
597,734 | Windstream Holdings, Inc. | 5,188,331 | ||||||
|
| |||||||
15,025,392 | ||||||||
|
| |||||||
Multi-Utilities—31.8% | ||||||||
113,616 | Ameren Corp. | 5,453,568 | ||||||
82,500 | Black Hills Corp. | 4,998,675 | ||||||
174,609 | CMS Energy Corp. | 7,103,094 | ||||||
96,997 | Dominion Resources, Inc. | 6,932,375 | ||||||
80,311 | DTE Energy Co. | 7,160,529 | ||||||
84,943 | NorthWestern Corp. | 4,828,160 | ||||||
107,834 | SCANA Corp. | 7,407,117 | ||||||
72,459 | Sempra Energy | 7,488,638 | ||||||
103,401 | Vectren Corp. | 5,051,139 | ||||||
127,571 | WEC Energy Group, Inc. | 7,425,908 | ||||||
|
| |||||||
63,849,203 | ||||||||
|
| |||||||
Oil & Gas Storage & Transportation—3.6% | ||||||||
199,308 | ONEOK, Inc. | 7,204,984 | ||||||
|
| |||||||
Water Utilities—6.5% | ||||||||
110,266 | American Water Works Co., Inc. | 8,022,954 | ||||||
157,645 | Aqua America, Inc. | 4,991,041 | ||||||
|
| |||||||
13,013,995 | ||||||||
|
| |||||||
Total Common Stocks (Cost $191,955,883) | 200,965,306 | |||||||
|
| |||||||
Number of Shares | Value | |||||||
Money Market Fund—0.0% | ||||||||
80,685 | Invesco Premier Portfolio—Institutional Class, 0.39%(b) (Cost $80,685) | $ | 80,685 | |||||
|
| |||||||
Total Investments (Cost $192,036,568)—100.0% | 201,045,991 | |||||||
Other assets less liabilities—(0.0)% | (92,875 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 200,953,116 | ||||||
|
|
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 42 |
|
Schedule of Investments(a)
PowerShares NASDAQ Internet Portfolio (PNQI)
April 30, 2016
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests—100.0% | ||||||||
Alternative Carriers—0.4% | ||||||||
28,264 | Cogent Communications Group, Inc. | $ | 1,093,817 | |||||
|
| |||||||
Application Software—0.1% | ||||||||
52,462 | NQ Mobile, Inc., Class A ADR (China)(b)(c) | 267,556 | ||||||
|
| |||||||
Casinos & Gaming—0.1% | ||||||||
17,445 | 500.com Ltd., Class A ADR (China)(b)(c) | 327,791 | ||||||
|
| |||||||
Internet Retail—36.0% | ||||||||
21,708 | 1-800-FLOWERS.COM, Inc., Class A(c) | 170,408 | ||||||
37,837 | Amazon.com, Inc.(c) | 24,956,907 | ||||||
7,211 | Blue Nile, Inc. | 185,900 | ||||||
215,128 | Ctrip.com International Ltd. ADR (China)(c) | 9,381,732 | ||||||
70,086 | Etsy, Inc.(c) | 615,355 | ||||||
86,140 | Expedia, Inc., Class A | 9,972,428 | ||||||
17,922 | FTD Cos., Inc.(c) | 498,411 | ||||||
365,421 | Groupon, Inc., Class A(b)(c) | 1,322,824 | ||||||
406,563 | JD.Com, Inc., Class A ADR (China)(c) | 10,391,750 | ||||||
20,001 | Lands’ End, Inc.(b)(c) | 486,624 | ||||||
44,984 | Liberty TripAdvisor Holdings, Inc., Series A(c) | 992,347 | ||||||
26,376 | MakeMyTrip Ltd. (India)(b)(c) | 484,263 | ||||||
111,902 | Netflix, Inc.(c) | 10,074,537 | ||||||
18,389 | Nutrisystem, Inc. | 404,926 | ||||||
15,776 | Overstock.com, Inc.(c) | 230,172 | ||||||
12,708 | PetMed Express, Inc.(b) | 232,556 | ||||||
16,523 | Priceline Group, Inc. (The)(c) | 22,201,294 | ||||||
40,938 | Qunar Cayman Islands Ltd., Class B ADR (China)(b)(c) | 1,670,680 | ||||||
21,791 | Shutterfly, Inc.(c) | 1,001,950 | ||||||
82,817 | TripAdvisor, Inc., Class A(c) | 5,349,150 | ||||||
|
| |||||||
100,624,214 | ||||||||
|
| |||||||
Internet Software & Services—59.2% | ||||||||
34,299 | 21Vianet Group, Inc., Class A ADR (China)(c) | 691,982 | ||||||
25,507 | Actua Corp.(c) | 241,806 | ||||||
110,502 | Akamai Technologies, Inc.(c) | 5,634,497 | ||||||
28,498 | Alarm.com Holdings, Inc.(b)(c) | 650,039 | ||||||
29,960 | Alphabet, Inc., Class C(c) | 20,762,580 | ||||||
36,584 | Angie’s List, Inc.(b)(c) | 320,110 | ||||||
6,564 | Autobytel, Inc.(c) | 108,962 | ||||||
28,347 | Autohome, Inc., Class A ADR (China)(b)(c) | 837,937 | ||||||
120,548 | Baidu, Inc., Class A ADR (China)(c) | 23,422,476 | ||||||
62,131 | Bankrate, Inc.(c) | 567,877 | ||||||
50,843 | Bazaarvoice, Inc.(c) | 170,324 | ||||||
18,260 | Benefitfocus, Inc.(b)(c) | 692,054 | ||||||
25,763 | Blucora, Inc.(c) | 206,362 | ||||||
17,039 | Carbonite, Inc.(c) | 128,474 | ||||||
19,594 | Cimpress NV (Netherlands)(c) | 1,721,725 | ||||||
35,813 | comScore, Inc.(c) | 1,096,594 | ||||||
34,257 | Cornerstone OnDemand, Inc.(c) | 1,176,728 | ||||||
20,327 | CoStar Group, Inc.(c) | 4,010,720 | ||||||
36,117 | Criteo SA ADR (France)(c) | 1,505,718 | ||||||
23,578 | Demandware, Inc.(c) | 1,086,474 | ||||||
32,485 | DHI Group, Inc.(c) | 230,968 | ||||||
64,963 | EarthLink Holdings Corp. | 377,435 | ||||||
439,191 | eBay, Inc.(c) | 10,729,436 | ||||||
85,951 | Endurance International Group Holdings, Inc.(b)(c) | 920,535 |
Number of Shares | Value | |||||||
Common Stocks and Other Equity Interests (continued) | ||||||||
Internet Software & Services (continued) | ||||||||
26,263 | Envestnet, Inc.(c) | $ | 824,133 | |||||
195,525 | Facebook, Inc., Class A(c) | 22,989,830 | ||||||
31,575 | Five9, Inc.(c) | 292,069 | ||||||
48,593 | GoDaddy, Inc., Class A(c) | 1,475,769 | ||||||
53,713 | Gogo, Inc.(b)(c) | 568,821 | ||||||
35,396 | Hortonworks, Inc.(b)(c) | 409,532 | ||||||
48,312 | IAC/InterActiveCorp. | 2,238,778 | ||||||
30,427 | j2 Global, Inc. | 1,932,723 | ||||||
35,829 | LivePerson, Inc.(c) | 216,766 | ||||||
15,692 | LogMeIn, Inc.(c) | 936,812 | ||||||
27,072 | Marketo, Inc.(c) | 595,313 | ||||||
23,966 | Match Group, Inc., Class A(b)(c) | 273,212 | ||||||
27,607 | MercadoLibre, Inc. (Argentina) | 3,447,838 | ||||||
33,810 | Mimecast Ltd.(b)(c) | 268,790 | ||||||
28,992 | Momo, Inc., Class A ADR (China)(b)(c) | 476,629 | ||||||
47,163 | NetEase, Inc. ADR (China) | 6,635,834 | ||||||
30,976 | New Relic, Inc.(b)(c) | 798,561 | ||||||
41,045 | NIC, Inc. | 726,907 | ||||||
142,354 | Pandora Media, Inc.(b)(c) | 1,413,575 | ||||||
81,896 | Rackspace Hosting, Inc.(c) | 1,872,962 | ||||||
30,954 | RetailMeNot, Inc.(c) | 260,942 | ||||||
17,412 | SciQuest, Inc.(c) | 240,634 | ||||||
22,059 | Shutterstock, Inc.(b)(c) | 904,860 | ||||||
36,468 | SINA Corp. (China)(c) | 1,826,682 | ||||||
24,174 | Sohu.com, Inc. (China)(c) | 1,086,138 | ||||||
10,530 | SPS Commerce, Inc.(c) | 536,293 | ||||||
10,449 | Stamps.com, Inc.(b)(c) | 860,580 | ||||||
51,695 | TrueCar, Inc.(b)(c) | 353,594 | ||||||
436,216 | Twitter, Inc.(c) | 6,377,478 | ||||||
68,439 | VeriSign, Inc.(b)(c) | 5,913,130 | ||||||
31,405 | Web.com Group, Inc.(c) | 627,786 | ||||||
23,767 | WebMD Health Corp.(c) | 1,491,142 | ||||||
29,541 | Weibo Corp., Class A ADR (China)(b)(c) | 722,868 | ||||||
24,817 | Wix.com Ltd. (Israel)(b)(c) | 613,476 | ||||||
328,806 | Yahoo!, Inc.(c) | 12,034,300 | ||||||
169,651 | Yandex NV, Class A (Russia)(c) | 3,472,756 | ||||||
23,652 | YY, Inc., Class A ADR (China)(c) | 1,485,819 | ||||||
33,336 | Zillow Group, Inc., Class A(b)(c) | 834,067 | ||||||
|
| |||||||
165,329,212 | ||||||||
|
| |||||||
Specialized REITs—4.1% | ||||||||
34,419 | Equinix, Inc. REIT | 11,370,317 | ||||||
|
| |||||||
Wireless Telecommunication Services—0.1% | ||||||||
23,246 | Boingo Wireless, Inc.(c) | 178,762 | ||||||
|
| |||||||
Total Common Stocks and Other Equity Interests (Cost $276,099,394) | 279,191,669 | |||||||
|
| |||||||
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 43 |
|
PowerShares NASDAQ Internet Portfolio (PNQI) (continued)
April 30, 2016
Number of Shares | Value | |||||||
Money Market Fund—0.0% | ||||||||
73,510 | Invesco Premier Portfolio—Institutional Class, 0.39%(d) (Cost $73,510) | $ | 73,510 | |||||
|
| |||||||
Total Investments (excluding investments purchased with cash collateral from securities on loan) (Cost $276,172,904)—100.0% | 279,265,179 | |||||||
|
| |||||||
Investments Purchased with Cash Collateral from Securities on Loan | ||||||||
Money Market Fund—5.0% | ||||||||
13,941,062 | Invesco Liquid Assets Portfolio—Institutional Class, 0.44%(d)(e) (Cost $13,941,062) | 13,941,062 | ||||||
|
| |||||||
Total Investments (Cost $290,113,966)—105.0% | 293,206,241 | |||||||
Other assets less liabilities—(5.0)% | (14,054,220 | ) | ||||||
|
| |||||||
Net Assets—100.0% | $ | 279,152,021 | ||||||
|
|
Investment Abbreviations:
ADR—American Depositary Receipt
REIT—Real Estate Investment Trust
Notes to Schedule of Investments:
(a) | Industry and/or sector classifications used in this report are generally according to the Global Industry Classification Standard, which was developed by and is the exclusive property and a service mark of MSCI Inc. and Standard & Poor’s. |
(b) | All or a portion of this security was out on loan at April 30, 2016. |
(c) | Non-income producing security. |
(d) | The security and the Fund are advised by wholly-owned subsidiaries of Invesco Ltd. and are therefore considered to be affiliated. The rate shown is the 7-day SEC standardized yield as of April 30, 2016. |
(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. |
This Fund has holdings greater than 10% of net assets in the following country:
China | 21.2 | % |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 44 |
|
(This Page Intentionally Left Blank)
Statements of Assets and Liabilities
April 30, 2016
PowerShares DWA Basic Materials Momentum Portfolio (PYZ) | PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ) | PowerShares DWA Consumer Staples Momentum Portfolio (PSL) | PowerShares DWA Energy Momentum Portfolio (PXI) | PowerShares DWA Financial Momentum Portfolio (PFI) | ||||||||||||||||
Assets: | ||||||||||||||||||||
Unaffiliated investments, at value(a) | $ | 168,468,980 | $ | 92,976,187 | $ | 297,044,423 | $ | 125,223,593 | $ | 29,394,041 | ||||||||||
Affiliated investments, at value | 92,468 | 106,692 | 237,677 | 87,876 | 65,095 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total investments, at value | 168,561,448 | 93,082,879 | 297,282,100 | 125,311,469 | 29,459,136 | |||||||||||||||
Receivables: | ||||||||||||||||||||
Dividends | 56,751 | 64,340 | 106,767 | 110,891 | 17,802 | |||||||||||||||
Investments sold | — | 2,130,858 | — | — | — | |||||||||||||||
Securities lending | — | — | — | — | — | |||||||||||||||
Other assets | 3,334 | 3,333 | 3,333 | 3,339 | 3,333 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Assets | 168,621,533 | 95,281,410 | 297,392,200 | 125,425,699 | 29,480,271 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Liabilities: | ||||||||||||||||||||
Due to custodian | 2,754 | — | — | — | — | |||||||||||||||
Payables: | ||||||||||||||||||||
Shares repurchased | — | 2,130,620 | — | — | — | |||||||||||||||
Collateral upon return of securities loaned | — | — | — | — | — | |||||||||||||||
Investments purchased | — | — | — | — | — | |||||||||||||||
Accrued advisory fees | 49,448 | 29,789 | 91,749 | 29,547 | 3,965 | |||||||||||||||
Accrued trustees’ and officer’s fees | 17,698 | 16,349 | 17,192 | 20,414 | 15,420 | |||||||||||||||
Accrued expenses | 54,213 | 140,257 | 213,240 | 89,285 | 42,899 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Liabilities | 124,113 | 2,317,015 | 322,181 | 139,246 | 62,284 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Assets | $ | 168,497,420 | $ | 92,964,395 | $ | 297,070,019 | $ | 125,286,453 | $ | 29,417,987 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Assets Consist of: | ||||||||||||||||||||
Shares of beneficial interest | $ | 186,728,734 | $ | 135,375,855 | $ | 317,114,437 | $ | 223,693,330 | $ | 42,230,372 | ||||||||||
Undistributed net investment income (loss) | 118,899 | 243,228 | 650,671 | 140,739 | 119,151 | |||||||||||||||
Undistributed net realized gain (loss) | (32,383,464 | ) | (41,020,658 | ) | (29,807,125 | ) | (117,111,476 | ) | (14,265,301 | ) | ||||||||||
Net unrealized appreciation (depreciation) | 14,033,251 | (1,634,030 | ) | 9,112,036 | 18,563,860 | 1,333,765 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Assets | $ | 168,497,420 | $ | 92,964,395 | $ | 297,070,019 | $ | 125,286,453 | $ | 29,417,987 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Shares outstanding (unlimited amount authorized, $0.01 par value) | 3,100,000 | 2,200,000 | 5,300,000 | 3,300,000 | 1,000,000 | |||||||||||||||
Net asset value | $ | 54.35 | $ | 42.26 | $ | 56.05 | $ | 37.97 | $ | 29.42 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Market price | $ | 54.38 | $ | 42.25 | $ | 56.05 | $ | 37.95 | $ | 29.43 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Unaffiliated investments, at cost | $ | 154,435,729 | $ | 94,610,217 | $ | 287,932,387 | $ | 106,659,733 | $ | 28,060,276 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Affiliated investments, at cost | $ | 92,468 | $ | 106,692 | $ | 237,677 | $ | 87,876 | $ | 65,095 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total investments, at cost | $ | 154,528,197 | $ | 94,716,909 | $ | 288,170,064 | $ | 106,747,609 | $ | 28,125,371 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
(a) Includes securities on loan with an aggregate value of | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
|
|
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 46 |
|
PowerShares DWA Healthcare Momentum Portfolio (PTH) | PowerShares DWA Industrials Momentum Portfolio (PRN) | PowerShares DWA Technology Momentum Portfolio (PTF) | PowerShares DWA Utilities Momentum Portfolio (PUI) | PowerShares NASDAQ Internet Portfolio (PNQI) | ||||||||||||||
$ | 75,358,508 | $ | 42,854,820 | $ | 182,638,819 | $ | 200,965,306 | $ | 279,191,669 | |||||||||
106,423 | 67,058 | 209,600 | 80,685 | 14,014,572 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
75,464,931 | 42,921,878 | 182,848,419 | 201,045,991 | 293,206,241 | ||||||||||||||
4,739 | 32,969 | 36 | 375,193 | 15 | ||||||||||||||
— | 2,270,813 | — | — | — | ||||||||||||||
218 | — | 2,566 | — | 22,756 | ||||||||||||||
3,338 | 3,333 | 3,464 | 3,460 | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
75,473,226 | 45,228,993 | 182,854,485 | 201,424,644 | 293,229,012 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
— | — | — | — | — | ||||||||||||||
— | 2,271,953 | — | — | — | ||||||||||||||
— | — | 18,250 | — | 13,941,062 | ||||||||||||||
— | — | — | 290,453 | — | ||||||||||||||
18,802 | 15,815 | 57,829 | 71,417 | 135,929 | ||||||||||||||
19,473 | 18,019 | 16,975 | 16,480 | — | ||||||||||||||
103,187 | 46,922 | 138,179 | 93,178 | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
141,462 | 2,352,709 | 231,233 | 471,528 | 14,076,991 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | 75,331,764 | $ | 42,876,284 | $ | 182,623,252 | $ | 200,953,116 | $ | 279,152,021 | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | 176,105,134 | $ | 106,115,200 | $ | 246,731,649 | $ | 206,690,078 | $ | 294,346,432 | |||||||||
(194,516 | ) | 43,628 | (100,703 | ) | 748,138 | (305,621 | ) | |||||||||||
(102,820,628 | ) | (65,308,483 | ) | (66,272,927 | ) | (15,494,523 | ) | (17,981,065 | ) | |||||||||
2,241,774 | 2,025,939 | 2,265,233 | 9,009,423 | 3,092,275 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | 75,331,764 | $ | 42,876,284 | $ | 182,623,252 | $ | 200,953,116 | $ | 279,152,021 | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
1,700,000 | 950,000 | 5,050,000 | 8,000,000 | 3,650,000 | ||||||||||||||
$ | 44.31 | $ | 45.13 | $ | 36.16 | $ | 25.12 | $ | 76.48 | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | 44.28 | $ | 45.13 | $ | 36.16 | $ | 25.10 | $ | 76.44 | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | 73,116,734 | $ | 40,828,881 | $ | 180,373,586 | $ | 191,955,883 | $ | 276,099,394 | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | 106,423 | $ | 67,058 | $ | 209,600 | $ | 80,685 | $ | 14,014,572 | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | 73,223,157 | $ | 40,895,939 | $ | 180,583,186 | $ | 192,036,568 | $ | 290,113,966 | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | — | $ | — | $ | 17,280 | $ | — | $ | 13,502,145 | |||||||||
|
|
|
|
|
|
|
|
|
|
| 47 |
|
For the year ended April 30, 2016
PowerShares DWA Basic Materials Momentum Portfolio (PYZ) | PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ) | PowerShares DWA Consumer Staples Momentum Portfolio (PSL) | PowerShares DWA Energy Momentum Portfolio (PXI) | PowerShares DWA Financial Momentum Portfolio (PFI) | ||||||||||||||||
Investment Income: | ||||||||||||||||||||
Unaffiliated dividend income | $ | 1,229,967 | $ | 1,832,764 | $ | 3,321,088 | $ | 2,486,933 | $ | 617,227 | ||||||||||
Affiliated dividend income | 128 | 281 | 324 | 271 | 21,034 | |||||||||||||||
Securities lending income | 2,343 | — | — | 67,461 | — | |||||||||||||||
Foreign withholding tax | — | — | — | (1,569 | ) | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Income | 1,232,438 | 1,833,045 | 3,321,412 | 2,553,096 | 638,261 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Expenses: | ||||||||||||||||||||
Advisory fees | 348,688 | 925,666 | 1,218,498 | 662,794 | 161,433 | |||||||||||||||
Sub-licensing fees | 39,903 | 272,420 | 346,685 | 220,726 | 18,914 | |||||||||||||||
Accounting & administration fees | 34,829 | 40,270 | 51,002 | 33,761 | 34,843 | |||||||||||||||
Professional fees | 29,799 | 29,297 | 26,674 | 36,341 | 29,450 | |||||||||||||||
Trustees’ and officer’s fees | 8,868 | 10,801 | 11,250 | 10,211 | 8,306 | |||||||||||||||
Custodian & transfer agent fees | 3,693 | 4,911 | 5,427 | 5,532 | 3,691 | |||||||||||||||
Other expenses | 16,880 | 30,637 | 30,975 | 31,942 | 15,384 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Expenses | 482,660 | 1,314,002 | 1,690,511 | 1,001,307 | 272,021 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Less: Waivers | (64,359 | ) | (203,454 | ) | (228,582 | ) | (199,640 | ) | (78,407 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Expenses | 418,301 | 1,110,548 | 1,461,929 | 801,667 | 193,614 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net Investment Income (Loss) | 814,137 | 722,497 | 1,859,483 | 1,751,429 | 444,647 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Realized and Unrealized Gain (Loss): | ||||||||||||||||||||
Net realized gain (loss) from: | ||||||||||||||||||||
Investment securities | (5,977,212 | ) | (29,432,392 | ) | (20,252,343 | ) | (50,910,143 | ) | (2,918,844 | ) | ||||||||||
In-kind redemptions | 2,387,494 | 10,092,059 | 23,169,463 | 3,478,311 | 1,592,378 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net realized gain (loss) | (3,589,718 | ) | (19,340,333 | ) | 2,917,120 | (47,431,832 | ) | (1,326,466 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net change in unrealized appreciation (depreciation) on investment securities | 9,952,259 | (8,257,723 | ) | 2,304,927 | 5,917,263 | (271,892 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net realized and unrealized gain (loss) | 6,362,541 | (27,598,056 | ) | 5,222,047 | (41,514,569 | ) | (1,598,358 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net increase (decrease) in net assets resulting from operations | $ | 7,176,678 | $ | (26,875,559 | ) | $ | 7,081,530 | $ | (39,763,140 | ) | $ | (1,153,711 | ) | |||||||
|
|
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 48 |
|
PowerShares DWA Healthcare Momentum Portfolio (PTH) | PowerShares DWA Industrials Momentum Portfolio (PRN) | PowerShares DWA Technology Momentum Portfolio (PTF) | PowerShares DWA Utilities Momentum Portfolio (PUI) | PowerShares NASDAQ Internet Portfolio (PNQI) | ||||||||||||||
$ | 204,387 | $ | 993,897 | $ | 861,241 | $ | 2,194,477 | $ | 786,985 | |||||||||
363 | 166 | 243 | 89 | 82 | ||||||||||||||
24,179 | — | 83,066 | 518 | 179,636 | ||||||||||||||
— | — | — | — | (7,068 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
228,929 | 994,063 | 944,550 | 2,195,084 | 959,635 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
986,115 | 460,439 | 835,456 | 328,168 | 1,469,560 | ||||||||||||||
269,330 | 47,584 | 235,615 | 67,178 | — | ||||||||||||||
43,090 | 35,547 | 38,919 | 35,618 | — | ||||||||||||||
27,596 | 26,119 | 26,138 | 25,029 | — | ||||||||||||||
11,976 | 9,765 | 10,370 | 8,230 | — | ||||||||||||||
7,199 | 4,726 | 4,707 | 5,403 | — | ||||||||||||||
30,804 | 18,211 | 23,143 | 14,851 | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
1,376,110 | 602,391 | 1,174,348 | 484,477 | 1,469,560 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
(193,107 | ) | (50,019 | ) | (172,025 | ) | (90,759 | ) | (87 | ) | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
1,183,003 | 552,372 | 1,002,323 | 393,718 | 1,469,473 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
(954,074 | ) | 441,691 | (57,773 | ) | 1,801,366 | (509,838 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
(48,671,598 | ) | (15,407,549 | ) | (33,801,003 | ) | (1,960,344 | ) | (7,241,009 | ) | |||||||||
(10,142,862 | ) | 9,325,147 | 7,554,182 | 6,614,636 | 21,043,433 | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
(58,814,460 | ) | (6,082,402 | ) | (26,246,821 | ) | 4,654,292 | 13,802,424 | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
(13,159,154 | ) | (4,408,769 | ) | (4,839,493 | ) | 6,605,206 | (6,067,975 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
(71,973,614 | ) | (10,491,171 | ) | (31,086,314 | ) | 11,259,498 | 7,734,449 | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
$ | (72,927,688 | ) | $ | (10,049,480 | ) | $ | (31,144,087 | ) | $ | 13,060,864 | $ | 7,224,611 | ||||||
|
|
|
|
|
|
|
|
|
|
| 49 |
|
Statements of Changes in Net Assets
For the years ended April 30, 2016 and 2015
PowerShares DWA Basic Materials Momentum Portfolio (PYZ) | PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ) | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Operations: | ||||||||||||||||
Net investment income | $ | 814,137 | $ | 755,357 | $ | 722,497 | $ | 386,759 | ||||||||
Net realized gain (loss) | (3,589,718 | ) | 2,751,766 | (19,340,333 | ) | (264,880 | ) | |||||||||
Net change in unrealized appreciation (depreciation) | 9,952,259 | (2,563,405 | ) | (8,257,723 | ) | 8,042,533 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | 7,176,678 | 943,718 | (26,875,559 | ) | 8,164,412 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions to Shareholders from: | ||||||||||||||||
Net investment income | (869,950 | ) | (881,072 | ) | (507,462 | ) | (352,829 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shareholder Transactions: | ||||||||||||||||
Proceeds from shares sold | 118,077,520 | 64,480,821 | 242,968,038 | 74,536,962 | ||||||||||||
Value of shares repurchased | (33,968,926 | ) | (80,651,397 | ) | (219,083,505 | ) | (31,639,305 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from shares transactions | 84,108,594 | (16,170,576 | ) | 23,884,533 | 42,897,657 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Increase (Decrease) in Net Assets | 90,415,322 | (16,107,930 | ) | (3,498,488 | ) | 50,709,240 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets: | ||||||||||||||||
Beginning of year | 78,082,098 | 94,190,028 | 96,462,883 | 45,753,643 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of year | $ | 168,497,420 | $ | 78,082,098 | $ | 92,964,395 | $ | 96,462,883 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income at end of year | $ | 118,899 | $ | 174,712 | $ | 243,228 | $ | 28,193 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Changes in Shares Outstanding: | ||||||||||||||||
Shares sold | 2,350,000 | 1,150,000 | 5,250,000 | 1,650,000 | ||||||||||||
Shares repurchased | (700,000 | ) | (1,500,000 | ) | (5,150,000 | ) | (700,000 | ) | ||||||||
Shares outstanding, beginning of year | 1,450,000 | 1,800,000 | 2,100,000 | 1,150,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Shares outstanding, end of year | 3,100,000 | 1,450,000 | 2,200,000 | 2,100,000 | ||||||||||||
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 50 |
|
PowerShares DWA Consumer Staples Momentum Portfolio (PSL) | PowerShares DWA Energy Momentum Portfolio (PXI) | PowerShares DWA Financial Momentum Portfolio (PFI) | ||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||
$ | 1,859,483 | $ | 864,493 | $ | 1,751,429 | $ | 1,997,316 | $ | 444,647 | $ | 471,546 | |||||||||||
2,917,120 | (478,875 | ) | (47,431,832 | ) | (37,737,229 | ) | (1,326,466 | ) | 2,137,855 | |||||||||||||
2,304,927 | 7,201,245 | 5,917,263 | (11,115,391 | ) | (271,892 | ) | 1,494,315 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
7,081,530 | 7,586,863 | (39,763,140 | ) | (46,855,304 | ) | (1,153,711 | ) | 4,103,716 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(1,309,748 | ) | (932,548 | ) | (2,409,629 | ) | (2,298,949 | ) | (414,019 | ) | (460,625 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
384,038,893 | 76,936,911 | 40,220,901 | 116,145,756 | 6,051,459 | 31,087,185 | |||||||||||||||||
(190,454,068 | ) | (24,616,231 | ) | (55,939,362 | ) | (98,254,563 | ) | (13,512,339 | ) | (32,450,739 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
193,584,825 | 52,320,680 | (15,718,461 | ) | 17,891,193 | (7,460,880 | ) | (1,363,554 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
199,356,607 | 58,974,995 | (57,891,230 | ) | (31,263,060 | ) | (9,028,610 | ) | 2,279,537 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
97,713,412 | 38,738,417 | 183,177,683 | 214,440,743 | 38,446,597 | 36,167,060 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 297,070,019 | $ | 97,713,412 | $ | 125,286,453 | $ | 183,177,683 | $ | 29,417,987 | $ | 38,446,597 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 650,671 | $ | 100,936 | $ | 140,739 | $ | 798,939 | $ | 119,151 | $ | 88,523 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
6,850,000 | 1,500,000 | 1,100,000 | 1,950,000 | 200,000 | 1,000,000 | |||||||||||||||||
(3,450,000 | ) | (500,000 | ) | (1,500,000 | ) | (1,800,000 | ) | (450,000 | ) | (1,050,000 | ) | |||||||||||
1,900,000 | 900,000 | 3,700,000 | 3,550,000 | 1,250,000 | 1,300,000 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
5,300,000 | 1,900,000 | 3,300,000 | 3,700,000 | 1,000,000 | 1,250,000 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| 51 |
|
Statements of Changes in Net Assets (continued)
For the years ended April 30, 2016 and 2015
PowerShares DWA Healthcare Momentum Portfolio (PTH) | PowerShares DWA Industrials Momentum Portfolio (PRN) | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
Operations: | ||||||||||||||||
Net investment income (loss) | $ | (954,074 | ) | $ | (448,437 | ) | $ | 441,691 | $ | 458,986 | ||||||
Net realized gain (loss) | (58,814,460 | ) | 4,983,141 | (6,082,402 | ) | (8,931,976 | ) | |||||||||
Net change in unrealized appreciation (depreciation) | (13,159,154 | ) | 19,902,877 | (4,408,769 | ) | 8,773,867 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | (72,927,688 | ) | 24,437,581 | (10,049,480 | ) | 300,877 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions to Shareholders from: | ||||||||||||||||
Net investment income | — | — | (525,854 | ) | (407,957 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Shareholder Transactions: | ||||||||||||||||
Proceeds from shares sold | 169,070,157 | 161,411,849 | 64,488,214 | 48,061,097 | ||||||||||||
Value of shares repurchased | (199,613,152 | ) | (113,607,415 | ) | (123,450,417 | ) | (105,162,426 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from shares transactions | (30,542,995 | ) | 47,804,434 | (58,962,203 | ) | (57,101,329 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Increase (Decrease) in Net Assets | (103,470,683 | ) | 72,242,015 | (69,537,537 | ) | (57,208,409 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets: | ||||||||||||||||
Beginning of year | 178,802,447 | 106,560,432 | 112,413,821 | 169,622,230 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of year | $ | 75,331,764 | $ | 178,802,447 | $ | 42,876,284 | $ | 112,413,821 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income (loss) at end of year | $ | (194,516 | ) | $ | (267,356 | ) | $ | 43,628 | $ | 127,791 | ||||||
|
|
|
|
|
|
|
| |||||||||
Changes in Shares Outstanding: | ||||||||||||||||
Shares sold | 2,800,000 | 2,900,000 | 1,400,000 | 1,000,000 | ||||||||||||
Shares repurchased | (4,200,000 | ) | (2,150,000 | ) | (2,850,000 | ) | (2,250,000 | ) | ||||||||
Shares outstanding, beginning of year | 3,100,000 | 2,350,000 | 2,400,000 | 3,650,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Shares outstanding, end of year | 1,700,000 | 3,100,000 | 950,000 | 2,400,000 | ||||||||||||
|
|
|
|
|
|
|
|
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 52 |
|
PowerShares DWA Technology Momentum Portfolio (PTF) | PowerShares DWA Utilities Momentum Portfolio (PUI) | PowerShares NASDAQ Internet Portfolio (PNQI) | ||||||||||||||||||||
2016 | 2015 | 2016 | 2015 | 2016 | 2015 | |||||||||||||||||
$ | (57,773 | ) | $ | 281,613 | $ | 1,801,366 | $ | 1,020,174 | $ | (509,838 | ) | $ | (877,964 | ) | ||||||||
(26,246,821 | ) | 3,128,715 | 4,654,292 | 2,356,747 | 13,802,424 | 23,157,779 | ||||||||||||||||
(4,839,493 | ) | 10,043,793 | 6,605,206 | (2,176,606 | ) | (6,067,975 | ) | 20,785,790 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
(31,144,087 | ) | 13,454,121 | 13,060,864 | 1,200,315 | 7,224,611 | 43,065,605 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
— | (406,069 | ) | (1,178,184 | ) | (982,578 | ) | — | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
288,451,357 | 48,504,403 | 198,194,423 | 11,737,939 | 136,066,781 | 65,104,807 | |||||||||||||||||
(139,271,747 | ) | (50,489,939 | ) | (44,017,408 | ) | (18,663,468 | ) | (80,990,297 | ) | (180,947,163 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
149,179,610 | (1,985,536 | ) | 154,177,015 | (6,925,529 | ) | 55,076,484 | (115,842,356 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
118,035,523 | 11,062,516 | 166,059,695 | (6,707,792 | ) | 62,301,095 | (72,776,751 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
64,587,729 | 53,525,213 | 34,893,421 | 41,601,213 | 216,850,926 | 289,627,677 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$182,623,252 | $ | 64,587,729 | $ | 200,953,116 | $ | 34,893,421 | $ | 279,152,021 | $ | 216,850,926 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | (100,703 | ) | $ | (45,530 | ) | $ | 748,138 | $ | 124,956 | $ | (305,621 | ) | $ | (305,444 | ) | |||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
7,050,000 | 1,250,000 | 8,250,000 | 500,000 | 1,750,000 | 950,000 | |||||||||||||||||
(3,600,000 | ) | (1,300,000 | ) | (1,800,000 | ) | (800,000 | ) | (1,100,000 | ) | (2,650,000 | ) | |||||||||||
1,600,000 | 1,650,000 | 1,550,000 | 1,850,000 | 3,000,000 | 4,700,000 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||
5,050,000 | 1,600,000 | 8,000,000 | 1,550,000 | 3,650,000 | 3,000,000 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| 53 |
|
PowerShares DWA Basic Materials Momentum Portfolio (PYZ)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 53.85 | $ | 52.33 | $ | 43.38 | $ | 38.24 | $ | 40.66 | ||||||||||
Net investment income(a) | 0.58 | 0.43 | 0.51 | 0.63 | 0.47 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.59 | 1.57 | 8.95 | 5.16 | (2.46 | ) | ||||||||||||||
Total from investment operations | 1.17 | 2.00 | 9.46 | 5.79 | (1.99 | ) | ||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.67 | ) | (0.48 | ) | (0.51 | ) | (0.65 | ) | (0.43 | ) | ||||||||||
Net asset value at end of year | $ | 54.35 | $ | 53.85 | $ | 52.33 | $ | 43.38 | $ | 38.24 | ||||||||||
Market price at end of year(b) | $ | 54.38 | $ | 53.80 | $ | 52.31 | $ | 43.29 | $ | 38.20 | ||||||||||
Net Asset Value Total Return(c) | 2.32 | % | 3.82 | % | 21.97 | % | 15.37 | % | (4.76 | )% | ||||||||||
Market Price Total Return(c) | 2.47 | % | 3.77 | % | 22.18 | % | 15.26 | % | (4.88 | )% | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 168,497 | $ | 78,082 | $ | 94,190 | $ | 80,253 | $ | 66,924 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.60 | % | 0.60 | % | 0.64 | % | 0.65 | % | 0.65 | % | ||||||||||
Expenses, prior to Waivers | 0.69 | % | 0.69 | % | 0.68 | % | 0.72 | % | 0.76 | % | ||||||||||
Net investment income, after Waivers | 1.17 | % | 0.79 | % | 1.08 | % | 1.59 | % | 1.33 | % | ||||||||||
Portfolio turnover rate(d) | 96 | % | 80 | % | 158 | % | 63 | % | 78 | % |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the fiscal year ended April 30, 2014, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change. |
PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 45.93 | $ | 39.79 | $ | 34.19 | $ | 29.90 | $ | 27.54 | ||||||||||
Net investment income(a) | 0.17 | 0.27 | 0.17 | 0.39 | 0.18 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (3.71 | ) | 6.06 | 5.63 | 4.24 | 2.37 | ||||||||||||||
Total from investment operations | (3.54 | ) | 6.33 | 5.80 | 4.63 | 2.55 | ||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.13 | ) | (0.19 | ) | (0.20 | ) | (0.34 | ) | (0.19 | ) | ||||||||||
Net asset value at end of year | $ | 42.26 | $ | 45.93 | $ | 39.79 | $ | 34.19 | $ | 29.90 | ||||||||||
Market price at end of year(b) | $ | 42.25 | $ | 45.93 | $ | 39.74 | $ | 34.16 | $ | 29.89 | ||||||||||
Net Asset Value Total Return(c) | (7.73 | )% | 15.91 | % | 16.97 | % | 15.67 | % | 9.41 | % | ||||||||||
Market Price Total Return(c) | (7.76 | )% | 16.06 | % | 16.93 | % | 15.60 | % | 9.41 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 92,964 | $ | 96,463 | $ | 45,754 | $ | 23,933 | $ | 19,437 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.60 | % | 0.60 | % | 0.64 | % | 0.65 | % | 0.65 | % | ||||||||||
Expenses, prior to Waivers | 0.71 | % | 0.81 | % | 0.91 | % | 0.93 | % | 1.19 | % | ||||||||||
Net investment income, after Waivers | 0.39 | % | 0.63 | % | 0.42 | % | 1.29 | % | 0.69 | % | ||||||||||
Portfolio turnover rate(d) | 139 | % | 114 | % | 236 | % | 130 | % | 88 | % |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the fiscal year ended April 30, 2014, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 54 |
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Financial Highlights (continued)
PowerShares DWA Consumer Staples Momentum Portfolio (PSL)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 51.43 | $ | 43.04 | $ | 39.69 | $ | 32.61 | $ | 31.36 | ||||||||||
Net investment income(a) | 0.43 | 0.76 | (b) | 0.66 | 0.66 | 0.48 | ||||||||||||||
Net realized and unrealized gain on investments | 4.54 | 8.37 | 3.26 | 7.13 | 1.22 | |||||||||||||||
Total from investment operations | 4.97 | 9.13 | 3.92 | 7.79 | 1.70 | |||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.35 | ) | (0.74 | ) | (0.57 | ) | (0.71 | ) | (0.45 | ) | ||||||||||
Net asset value at end of year | $ | 56.05 | $ | 51.43 | $ | 43.04 | $ | 39.69 | $ | 32.61 | ||||||||||
Market price at end of year(c) | $ | 56.05 | $ | 51.43 | $ | 43.03 | $ | 39.67 | $ | 32.60 | ||||||||||
Net Asset Value Total Return(d) | 9.67 | % | 21.28 | % | 9.93 | % | 24.29 | % | 5.53 | % | ||||||||||
Market Price Total Return(d) | 9.67 | % | 21.31 | % | 9.97 | % | 24.27 | % | 5.47 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 297,070 | $ | 97,713 | $ | 38,738 | $ | 37,708 | $ | 39,131 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.60 | % | 0.60 | % | 0.64 | % | 0.65 | % | 0.65 | % | ||||||||||
Expenses, prior to Waivers | 0.69 | % | 0.78 | % | 0.79 | % | 0.82 | % | 0.89 | % | ||||||||||
Net investment income, after Waivers | 0.76 | % | 1.54 | %(b) | 1.56 | % | 1.94 | % | 1.54 | % | ||||||||||
Portfolio turnover rate(e) | 113 | % | 83 | % | 175 | % | 57 | % | 35 | % |
(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 significant dividend received of $5.77 per share owned of Pilgrim’s Pride Corp. on January 28, 2015. Net investment income per share and the ratio of net investment income to average net assets excluding the significant dividend are $0.28 and 0.55%, respectively. |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the fiscal year ended April 30, 2014, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change. |
PowerShares DWA Energy Momentum Portfolio (PXI)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 49.51 | $ | 60.41 | $ | 48.39 | $ | 40.45 | $ | 44.63 | ||||||||||
Net investment income(a) | 0.51 | 0.53 | 0.34 | 0.47 | 0.21 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (11.39 | ) | (10.82 | ) | 12.01 | 8.13 | (4.15 | ) | ||||||||||||
Total from investment operations | (10.88 | ) | (10.29 | ) | 12.35 | 8.60 | (3.94 | ) | ||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.66 | ) | (0.61 | ) | (0.33 | ) | (0.66 | ) | (0.24 | ) | ||||||||||
Net asset value at end of year | $ | 37.97 | $ | 49.51 | $ | 60.41 | $ | 48.39 | $ | 40.45 | ||||||||||
Market price at end of year(b) | $ | 37.95 | $ | 49.51 | $ | 60.37 | $ | 48.36 | $ | 40.47 | ||||||||||
Net Asset Value Total Return(c) | (22.01 | )% | (17.08 | )% | 25.66 | % | 21.48 | % | (8.79 | )% | ||||||||||
Market Price Total Return(c) | (22.05 | )% | (17.02 | )% | 25.66 | % | 21.35 | % | (8.78 | )% | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 125,286 | $ | 183,178 | $ | 214,441 | $ | 137,916 | $ | 141,562 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.60 | % | 0.60 | % | 0.64 | % | 0.66 | % | 0.65 | % | ||||||||||
Expenses, prior to Waivers | 0.76 | % | 0.74 | % | 0.64 | % | 0.69 | % | 0.66 | % | ||||||||||
Net investment income, after Waivers | 1.32 | % | 0.97 | % | 0.65 | % | 1.10 | % | 0.54 | % | ||||||||||
Portfolio turnover rate(d) | 119 | % | 109 | % | 198 | % | 80 | % | 107 | % |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the fiscal year ended April 30, 2014, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 55 |
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Financial Highlights (continued)
PowerShares DWA Financial Momentum Portfolio (PFI)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 30.76 | $ | 27.82 | $ | 23.92 | $ | 20.08 | $ | 20.45 | ||||||||||
Net investment income(a) | 0.42 | 0.37 | 0.32 | 0.35 | 0.25 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (1.37 | ) | 2.92 | 3.93 | 3.83 | (0.42 | ) | |||||||||||||
Total from investment operations | (0.95 | ) | 3.29 | 4.25 | 4.18 | (0.17 | ) | |||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.39 | ) | (0.35 | ) | (0.35 | ) | (0.34 | ) | (0.20 | ) | ||||||||||
Net asset value at end of year | $ | 29.42 | $ | 30.76 | $ | 27.82 | $ | 23.92 | $ | 20.08 | ||||||||||
Market price at end of year(b) | $ | 29.43 | $ | 30.76 | $ | 27.79 | $ | 23.90 | $ | 20.07 | ||||||||||
Net Asset Value Total Return(c) | (3.11 | )% | 11.84 | % | 17.89 | % | 21.07 | % | (0.66 | )% | ||||||||||
Market Price Total Return(c) | (3.08 | )% | 11.96 | % | 17.86 | % | 21.03 | % | (0.66 | )% | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 29,418 | $ | 38,447 | $ | 36,167 | $ | 20,330 | $ | 18,071 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.60 | % | 0.60 | %(d) | 0.64 | %(d) | 0.66 | %(d) | 0.65 | %(d) | ||||||||||
Expenses, prior to Waivers | 0.84 | % | 0.85 | %(d) | 0.91 | %(d) | 1.10 | %(d) | 1.21 | %(d) | ||||||||||
Net investment income, after Waivers | 1.38 | % | 1.24 | % | 1.20 | % | 1.66 | % | 1.33 | % | ||||||||||
Portfolio turnover rate(e) | 119 | % | 115 | % | 232 | % | 118 | % | 102 | % |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 companies’ 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 investment companies the Fund invests in. The effect of the estimated investment companies’ expenses that the Fund bears indirectly is included in the Fund’s total return. |
(e) | Portfolio turnover rate is not annualized for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the fiscal year ended April 30, 2014, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 56 |
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Financial Highlights (continued)
PowerShares DWA Healthcare Momentum Portfolio (PTH)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 57.68 | $ | 45.34 | $ | 38.76 | $ | 32.29 | $ | 31.41 | ||||||||||
Net investment income (loss)(a) | (0.27 | ) | (0.20 | ) | 0.00 | (b) | 0.43 | 0.02 | ||||||||||||
Net realized and unrealized gain (loss) on investments | (13.10 | ) | 12.54 | 6.73 | 6.39 | 0.86 | ||||||||||||||
Total from investment operations | (13.37 | ) | 12.34 | 6.73 | 6.82 | 0.88 | ||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | — | — | (0.15 | ) | (0.35 | ) | — | |||||||||||||
Net asset value at end of year | $ | 44.31 | $ | 57.68 | $ | 45.34 | $ | 38.76 | $ | 32.29 | ||||||||||
Market price at end of year(c) | $ | 44.28 | $ | 57.64 | $ | 45.34 | $ | 38.69 | $ | 32.30 | ||||||||||
Net Asset Value Total Return(d) | (23.18 | )% | 27.22 | % | 17.41 | % | 21.31 | % | 2.80 | % | ||||||||||
Market Price Total Return(d) | (23.18 | )% | 27.13 | % | 17.62 | % | 21.06 | % | 2.74 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 75,332 | $ | 178,802 | $ | 106,560 | $ | 60,071 | $ | 37,134 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.60 | % | 0.60 | % | 0.64 | % | 0.65 | % | 0.65 | % | ||||||||||
Expenses, prior to Waivers | 0.70 | % | 0.68 | % | 0.68 | % | 0.74 | % | 0.82 | % | ||||||||||
Net investment income (loss), after Waivers | (0.48 | )% | (0.38 | )% | 0.01 | % | 1.26 | % | 0.05 | % | ||||||||||
Portfolio turnover rate(e) | 200 | % | 151 | % | 278 | % | 93 | % | 99 | % |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the fiscal year ended April 30, 2014, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change. |
PowerShares DWA Industrials Momentum Portfolio (PRN)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 46.84 | $ | 46.47 | $ | 36.74 | $ | 30.02 | $ | 32.47 | ||||||||||
Net investment income(a) | 0.22 | 0.17 | 0.19 | 0.52 | 0.22 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (1.73 | ) | 0.35 | 9.72 | 6.89 | (2.48 | ) | |||||||||||||
Total from investment operations | (1.51 | ) | 0.52 | 9.91 | 7.41 | (2.26 | ) | |||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.20 | ) | (0.15 | ) | (0.18 | ) | (0.65 | ) | (0.19 | ) | ||||||||||
Return of capital | — | — | — | (0.04 | ) | — | ||||||||||||||
Total distributions | (0.20 | ) | (0.15 | ) | (0.18 | ) | (0.69 | ) | (0.19 | ) | ||||||||||
Net asset value at end of year | $ | 45.13 | $ | 46.84 | $ | 46.47 | $ | 36.74 | $ | 30.02 | ||||||||||
Market price at end of year(b) | $ | 45.13 | $ | 46.85 | $ | 46.43 | $ | 36.72 | $ | 30.00 | ||||||||||
Net Asset Value Total Return(c) | (3.24 | )% | 1.12 | % | 27.01 | % | 25.18 | % | (6.91 | )% | ||||||||||
Market Price Total Return(c) | (3.26 | )% | 1.23 | % | 26.97 | % | 25.19 | % | (7.00 | )% | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 42,876 | $ | 112,414 | $ | 169,622 | $ | 38,573 | $ | 30,017 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.60 | % | 0.60 | % | 0.63 | % | 0.65 | % | 0.65 | % | ||||||||||
Expenses, prior to Waivers | 0.65 | % | 0.64 | % | 0.66 | % | 0.92 | % | 0.80 | % | ||||||||||
Net investment income, after Waivers | 0.48 | % | 0.36 | % | 0.43 | % | 1.65 | % | 0.77 | % | ||||||||||
Portfolio turnover rate(d) | 122 | % | 121 | % | 285 | % | 116 | % | 129 | % |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the fiscal year ended April 30, 2014, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
| 57 |
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Financial Highlights (continued)
PowerShares DWA Technology Momentum Portfolio (PTF)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 40.37 | $ | 32.44 | $ | 29.14 | $ | 27.29 | $ | 27.66 | ||||||||||
Net investment income (loss)(a) | (0.01 | ) | 0.17 | 0.04 | 0.17 | 0.01 | ||||||||||||||
Net realized and unrealized gain (loss) on investments | (4.20 | ) | 8.02 | 3.32 | 1.88 | (0.38 | ) | |||||||||||||
Total from investment operations | (4.21 | ) | 8.19 | 3.36 | 2.05 | (0.37 | ) | |||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | — | (0.26 | ) | (0.06 | ) | (0.20 | ) | — | ||||||||||||
Net asset value at end of year | $ | 36.16 | $ | 40.37 | $ | 32.44 | $ | 29.14 | $ | 27.29 | ||||||||||
Market price at end of year(b) | $ | 36.16 | $ | 40.36 | $ | 32.45 | $ | 29.06 | $ | 27.28 | ||||||||||
Net Asset Value Total Return(c) | (10.43 | )% | 25.29 | % | 11.52 | % | 7.59 | % | (1.34 | )% | ||||||||||
Market Price Total Return(c) | (10.41 | )% | 25.22 | % | 11.86 | % | 7.34 | % | (1.34 | )% | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 182,623 | $ | 64,588 | $ | 53,525 | $ | 32,053 | $ | 31,387 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.60 | % | 0.60 | % | 0.64 | % | 0.65 | % | 0.65 | % | ||||||||||
Expenses, prior to Waivers | 0.70 | % | 0.77 | % | 0.80 | % | 0.89 | % | 0.94 | % | ||||||||||
Net investment income (loss), after Waivers | (0.03 | )% | 0.46 | % | 0.13 | % | 0.63 | % | 0.03 | % | ||||||||||
Portfolio turnover rate(d) | 159 | % | 157 | % | 263 | % | 95 | % | 108 | % |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the fiscal year ended April 30, 2014, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change. |
PowerShares DWA Utilities Momentum Portfolio (PUI)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 22.51 | $ | 22.49 | $ | 19.82 | $ | 16.69 | $ | 17.12 | ||||||||||
Net investment income(a) | 0.64 | 0.57 | 0.47 | 0.45 | 0.41 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 2.60 | (0.01 | ) | 2.68 | 3.14 | (0.38 | ) | |||||||||||||
Total from investment operations | 3.24 | 0.56 | 3.15 | 3.59 | 0.03 | |||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | (0.63 | ) | (0.54 | ) | (0.48 | ) | (0.46 | ) | (0.46 | ) | ||||||||||
Net asset value at end of year | $ | 25.12 | $ | 22.51 | $ | 22.49 | $ | 19.82 | $ | 16.69 | ||||||||||
Market price at end of year(b) | $ | 25.10 | $ | 22.50 | $ | 22.47 | $ | 19.79 | $ | 16.66 | ||||||||||
Net Asset Value Total Return(c) | 14.86 | % | 2.48 | % | 16.27 | % | 21.90 | % | 0.26 | % | ||||||||||
Market Price Total Return(c) | 14.81 | % | 2.53 | % | 16.35 | % | 21.94 | % | 0.02 | % | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 200,953 | $ | 34,893 | $ | 41,601 | $ | 42,604 | $ | 43,393 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses, after Waivers | 0.60 | % | 0.60 | % | 0.63 | % | 0.63 | % | 0.63 | % | ||||||||||
Expenses, prior to Waivers | 0.74 | % | 0.80 | % | 0.77 | % | 0.81 | % | 0.77 | % | ||||||||||
Net investment income, after Waivers | 2.74 | % | 2.49 | % | 2.31 | % | 2.54 | % | 2.45 | % | ||||||||||
Portfolio turnover rate(d) | 91 | % | 47 | % | 131 | % | 48 | % | 71 | % |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. For the fiscal year ended April 30, 2014, the portfolio turnover calculation includes the value of securities purchased and sold in the effort to realign the Fund’s portfolio holdings due to the underlying index change. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
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Financial Highlights (continued)
PowerShares NASDAQ Internet Portfolio (PNQI)
Year Ended April 30, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
Per Share Operating Performance: | ||||||||||||||||||||
Net asset value at beginning of year | $ | 72.28 | $ | 61.62 | $ | 46.09 | $ | 41.08 | $ | 41.37 | ||||||||||
Net investment income (loss)(a) | (0.16 | ) | (0.21 | ) | (0.27 | ) | (0.01 | ) | (0.08 | ) | ||||||||||
Net realized and unrealized gain (loss) on investments | 4.36 | 10.87 | 15.80 | 5.04 | (0.21 | ) | ||||||||||||||
Total from investment operations | 4.20 | 10.66 | 15.53 | 5.03 | (0.29 | ) | ||||||||||||||
Distributions to shareholders from: | ||||||||||||||||||||
Net investment income | — | — | — | (0.02 | ) | — | ||||||||||||||
Net asset value at end of year | $ | 76.48 | $ | 72.28 | $ | 61.62 | $ | 46.09 | $ | 41.08 | ||||||||||
Market price at end of year(b) | $ | 76.44 | $ | 72.26 | $ | 61.51 | $ | 46.08 | $ | 41.08 | ||||||||||
Net Asset Value Total Return(c) | 5.81 | % | 17.30 | % | 33.70 | % | 12.26 | % | (0.70 | )% | ||||||||||
Market Price Total Return(c) | 5.79 | % | 17.48 | % | 33.48 | % | 12.23 | % | (0.77 | )% | ||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets at end of year (000’s omitted) | $ | 279,152 | $ | 216,851 | $ | 289,628 | $ | 64,525 | $ | 63,678 | ||||||||||
Ratio to average net assets of: | ||||||||||||||||||||
Expenses | 0.60 | % | 0.60 | % | 0.60 | % | 0.60 | % | 0.60 | % | ||||||||||
Net investment income (loss) | (0.21 | )% | (0.31 | )% | (0.42 | )% | (0.02 | )% | (0.22 | )% | ||||||||||
Portfolio turnover rate(d) | 27 | % | 31 | % | 21 | % | 20 | % | 23 | % |
(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. Net asset value total return includes adjustments in accordance with accounting principles generally accepted in the United States of America and as such, the net asset value for financial reporting purposes and the returns based upon those net asset values may differ from the net asset value and returns for shareholder transactions. Market price total return is calculated assuming an initial investment made at the market price at the beginning of the period, reinvestment of all dividends and distributions at market price during the period, and sale at the market 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 for periods less than one year, if applicable, and does not include securities received or delivered from processing creations or redemptions. |
See accompanying Notes to Financial Statements which are an integral part of the financial statements.
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PowerShares Exchange-Traded Fund Trust
April 30, 2016
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, 2016, the Trust offered fifty-three portfolios. This report includes the following portfolios:
Full Name | Short Name | |
PowerShares DWA Basic Materials Momentum Portfolio (PYZ) | “DWA Basic Materials Momentum Portfolio” | |
PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ) | “DWA Consumer Cyclicals Momentum Portfolio” | |
PowerShares DWA Consumer Staples Momentum Portfolio (PSL) | “DWA Consumer Staples Momentum Portfolio” | |
PowerShares DWA Energy Momentum Portfolio (PXI) | “DWA Energy Momentum Portfolio” | |
PowerShares DWA Financial Momentum Portfolio (PFI) | “DWA Financial Momentum Portfolio” | |
PowerShares DWA Healthcare Momentum Portfolio (PTH) | “DWA Healthcare Momentum Portfolio” | |
PowerShares DWA Industrials Momentum Portfolio (PRN) | “DWA Industrials Momentum Portfolio” | |
PowerShares DWA Technology Momentum Portfolio (PTF) | “DWA Technology Momentum Portfolio” | |
PowerShares DWA Utilities Momentum Portfolio (PUI) | “DWA Utilities Momentum Portfolio” | |
PowerShares NASDAQ Internet Portfolio (PNQI) | “NASDAQ Internet 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 NYSE Arca, Inc., except for Shares of NASDAQ Internet Portfolio, which are listed and traded on The NASDAQ Stock Market LLC.
The market price of each Share 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 principally in exchange for the deposit or delivery of a basket of securities (“Deposit Securities”). 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 | Underlying Index | |
DWA Basic Materials Momentum Portfolio | Dorsey Wright® Basic Materials Technical Leaders Index | |
DWA Consumer Cyclicals Momentum Portfolio | Dorsey Wright® Consumer Cyclicals Technical Leaders Index | |
DWA Consumer Staples Momentum Portfolio | Dorsey Wright® Consumer Staples Technical Leaders Index | |
DWA Energy Momentum Portfolio | Dorsey Wright® Energy Technical Leaders Index | |
DWA Financial Momentum Portfolio | Dorsey Wright® Financials Technical Leaders Index | |
DWA Healthcare Momentum Portfolio | Dorsey Wright® Healthcare Technical Leaders Index | |
DWA Industrials Momentum Portfolio | Dorsey Wright® Industrials Technical Leaders Index | |
DWA Technology Momentum Portfolio | Dorsey Wright® Technology Technical Leaders Index | |
DWA Utilities Momentum Portfolio | Dorsey Wright® Utilities Technical Leaders 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. The following is a summary of the significant accounting policies followed by the Funds in preparation of their financial statements.
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A. Security Valuation
Securities, including restricted securities, are valued according to the following policies:
A security listed or traded on an exchange (except convertible securities) 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. When such securities are valued by an independent pricing service they may be considered fair valued. Futures contracts are valued at the final settlement price set by an exchange on which they are principally traded. Listed options are valued at the mean between the last bid and asked 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 asked prices. For purposes of determining NAV per Share, futures and option contracts generally are valued 15 minutes after the close of the customary trading session of the New York Stock Exchange (“NYSE”).
Investments in open-end and closed-end registered investment companies that do not trade on an exchange are valued at the end of day NAV per share. Investments in open-end and closed-end registered investment companies that trade on an exchange are valued at the 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.
Debt obligations (including convertible securities) 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 (for unlisted equities), yield (for debt obligations), quality, type of issue, coupon rate (for debt obligations), maturity (for debt obligations), individual trading characteristics and other market data. Securities with a demand feature exercisable within one to seven days are valued at par. Debt obligations are subject to interest rate and credit risks. In addition, all debt obligations involve some risk of default with respect to interest and/or principal payments.
Foreign securities’ (including foreign exchange contracts’) prices 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 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 Invesco PowerShares Capital Management LLC (the “Adviser”) determines 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’ prices 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. The last bid price may be used to value equity securities. The mean between the last bid and asked prices is used to value debt obligations, including corporate loans.
Securities for which market quotations are not readily available or became unreliable are valued at fair value as determined in good faith following procedures approved by the Board of Trustees. Issuer-specific events, market trends, bid/asked 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.
Each Fund may invest in securities that are subject to interest rate risk, meaning the risk that the prices will generally fall as interest rates rise and, conversely, the prices will generally rise as interest rates fall. Specific securities differ in their sensitivity to changes in interest rates depending on their individual characteristics. Changes in interest rates may result in increased market volatility, which may affect the value and/or liquidity of certain Fund investments.
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.
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B. Other Risks
Index Risk. Unlike many investment companies, the Funds do not utilize investing strategies that seek returns in excess of their Underlying Indexes. 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.
Equity Risk. Equity risk is the risk that the value of the securities that each Fund holds will fall due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities that a 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 securities a Fund holds; the price of securities 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 securities a Fund holds. In addition, securities 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.
Industry Concentration Risk. In following its methodology, each Fund’s Underlying Index from time to time will be concentrated to a significant degree in securities of issuers located in a single industry or a sector. To the extent that an Underlying Index concentrates in the securities of issuers in a particular industry or sector, each Fund will also concentrate its investments to approximately the same extent. By concentrating its investments in an industry or sector, a Fund may face more risks than if it were diversified broadly over numerous industries or sectors. In addition, at times, an industry or sector may be out of favor and underperform other industries or the market as a whole. Any factors detrimental to the performance of such industry or sector will disproportionately impact a Fund’s NAV.
Non-Diversified Fund Risk. NASDAQ Internet Portfolio is non-diversified and can invest a greater portion of its assets in securities of individual issuers than diversified funds. 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.
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.
Momentum Investing Risk. Each Fund (except NASDAQ Internet Portfolio) employs a “momentum” style of investing that is subject to the risk that the securities may be more volatile than the market as a whole, or that the returns on securities that have previously exhibited price momentum are less than returns on other styles of investing. Momentum can turn quickly, and stocks that previously exhibited high momentum may not experience continued positive momentum. In addition, there may be periods when the momentum style of investing is out of favor and therefore, the investment performance of the Fund may suffer.
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.
Portfolio Turnover Risk. The Funds may engage in frequent trading of their portfolio securities in connection with the rebalancing or adjustment of their respective Underlying Index. A portfolio turnover rate of 200%, for example, is equivalent to a Fund buying and selling all of its securities two times during the course of a year. A high portfolio turnover rate (such as 100% or more) could result in high brokerage costs for a Fund. While a high portfolio turnover rate can result in an increase in taxable capital gain distributions to a Fund’s shareholders, each Fund will seek to utilize an in-kind creation and redemption mechanism to minimize realization of capital gains to the extent possible.
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.
Each Fund recognizes the tax benefits of uncertain tax positions only when the position is more likely than not to be sustained. Management has analyzed each Fund’s uncertain tax positions and concluded that no liability for unrecognized tax benefits should be recorded related to uncertain tax positions. Management is not aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will change materially in the next 12 months.
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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 Transactions and Investment Income
Investment transactions are accounted for on a trade date basis. Realized gains and losses from the sale or disposition of securities are computed on the specific identified cost basis. Interest income is recorded on the accrual basis. Dividend income (net of withholding tax, if any) is recorded on the ex-dividend date. Realized gains, dividends and interest received by a Fund may give rise to withholding and other taxes imposed by foreign countries. Tax conventions between certain countries and the United States may reduce or eliminate such taxes.
The Funds may periodically participate in litigation related to each Fund’s investments. As such, the Funds may receive proceeds from litigation settlements. Any proceeds received are included in the Statements of Operations as realized gain (loss) for investments no longer held and as unrealized gain (loss) for investments still held.
Corporate actions (including cash dividends) are recorded net of non-reclaimable foreign tax withholdings on the ex-date.
Brokerage commissions and mark ups are considered transaction costs and are recorded as an increase to the cost basis of securities purchased and/or a reduction of proceeds on a sale of securities. Such transaction costs are included in the determination of net realized and unrealized gain (loss) from investment securities reported in the Statements of Operations and the Statements of Changes in Net Assets and the net realized and unrealized gains (losses) on securities per share in the Financial Highlights. Transaction costs are included in the calculation of each Fund’s net asset value and, accordingly, they reduce each Fund’s total returns. These transaction costs are not considered operating expenses and are not reflected in net investment income reported in the Statements of Operations and the Statements of Changes in Net Assets, or the net investment income per share and the ratios of expenses and net investment income reported in the Financial Highlights, nor are they limited by any expense limitation arrangements between each Fund and the Adviser.
E. Country Determination
For the purposes of making investment selection decisions and presentation in the Schedule of Investments, the Adviser may determine the country in which an issuer is located and/or credit risk exposure based on various factors. These factors include the laws of the country under which the issuer is organized, where the issuer maintains a principal office, the country in which the issuer derives 50% or more of its total revenues and the country that has the primary market for the issuer’s securities, as well as other criteria. Among the other criteria that may be evaluated for making this determination are the country in which the issuer maintains 50% or more of its assets, the type of security, financial guarantees and enhancements, the nature of the collateral and the sponsor organization. Country of issuer and/or credit risk exposure has been determined to be the United States of America, unless otherwise noted.
F. 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 own 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 (the “Independent Trustees”) or the Adviser, expenses incurred in connection with the Board members’ services, including travel expenses and legal fees of counsel for the Independent Trustees, acquired fund fees and expenses, if any, and extraordinary expenses.
NASDAQ Internet Portfolio has agreed to pay an annual unitary management fee to the Adviser. Out of the unitary management fee, the Adviser has agreed to pay for substantially all expenses of the Fund, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for advisory fees, distribution fees, if any, brokerage expenses, taxes, interest, acquired fund fees and expenses, if any, 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 such investment companies’ expenses are included in the realized and unrealized gain or loss on the investments in the investment companies.
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G. 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. Generally, 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 federal 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 year-end.
H. Securities Lending
During the fiscal year ended April 30, 2016, DWA Basic Materials Momentum Portfolio, DWA Energy Momentum Portfolio, DWA Healthcare Momentum Portfolio, DWA Technology Momentum Portfolio, DWA Utilities Momentum Portfolio and NASDAQ Internet Portfolio participated in securities lending. Each Fund loaned portfolio securities having a market value up to one-third of each Fund’s total assets. Such loans are secured by cash collateral equal to no less than 102% (105% for international securities) 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 Schedules of Investments. Each Fund bears the risk of loss with respect to the investment of collateral. 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. When loaning securities, each Fund retains certain benefits of owning the securities, including the economic equivalent of dividends or interest generated by the security. Lending securities entails a risk of loss to each 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 failed to return the securities. The securities loaned are subject to termination at the option of the borrower or each Fund. Upon termination, the borrower will return to each Fund the securities loaned and each Fund will return the collateral. 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. Each Fund could experience delays and costs in gaining access to the collateral and the securities may lose value during the delay which could result in potential losses to each Fund. Some of these losses may be indemnified by the lending agent. Each 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, are included in Securities lending income on the Statements of Operations. The aggregate value of securities out on loan, if any, is shown on the Statements of Assets and Liabilities.
Note 3. Investment Advisory Agreement and Other Agreements
The Trust has entered into an Investment Advisory Agreement with the Adviser on behalf of each Fund, 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. Pursuant to that Investment Advisory Agreement, 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.
As compensation for its services, 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. Out of the unitary management fee, the Adviser has agreed to pay for substantially all expenses of NASDAQ Internet Portfolio, including the cost of transfer agency, custody, fund administration, legal, audit and other services, except for advisory fees, distribution fees, if any, brokerage expenses, taxes, interest, acquired fund fees and expenses, if any, litigation expenses and other extraordinary expenses.
The Trust also has entered into an Amended and Restated Excess Expense Agreement (the “Expense Agreement”) with the Adviser on behalf of each Fund (except NASDAQ Internet Portfolio), 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, acquired fund fees and expenses, if any, and extraordinary expenses) of each Fund (except NASDAQ Internet Portfolio) from exceeding 0.60% of the Fund’s average daily net assets per year (the “Expense Cap”), through at least August 31, 2017. Offering costs excluded from the Expense Cap for each Fund 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. Unless the Adviser continues the Expense Agreement, it will terminate on August 31, 2017. During its term, the Expense Agreement cannot be terminated or amended to increase the Expense Cap without approval of the Board of Trustees.
Further, through August 31, 2018, the Adviser has contractually agreed to waive a portion of each Fund’s management fee in an amount equal to 100% of the net advisory fees an affiliate of the Adviser receives that are attributable to certain of the Fund’s investments in money market funds managed by that affiliate (excluding investments of cash collateral from securities lending). The Adviser cannot discontinue this waiver prior to its expiration. This agreement is not subject to recapture by the Adviser.
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For the fiscal year ended April 30, 2016, the Adviser waived fees and/or paid Fund expenses for each Fund in the following amounts:
DWA Basic Materials Momentum Portfolio | $ | 64,359 | ||
DWA Consumer Cyclicals Momentum Portfolio | 203,454 | |||
DWA Consumer Staples Momentum Portfolio | 228,582 | |||
DWA Energy Momentum Portfolio | 199,640 | |||
DWA Financial Momentum Portfolio | 78,407 | |||
DWA Healthcare Momentum Portfolio | 193,107 | |||
DWA Industrials Momentum Portfolio | 50,019 | |||
DWA Technology Momentum Portfolio | 172,025 | |||
DWA Utilities Momentum Portfolio | 90,759 | |||
NASDAQ Internet Portfolio | 87 |
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 NASDAQ Internet Portfolio.
For the following Funds, the amounts available for potential future recapture by the Adviser under the Expense Agreement and the expiration schedule at April 30, 2016 are as follows:
Total Potential Recapture Amounts | Potential Recapture Amounts Expiring | |||||||||||||||
4/30/17 | 4/30/18 | 4/30/19 | ||||||||||||||
DWA Basic Materials Momentum Portfolio | $ | 179,420 | $ | 32,772 | $ | 82,414 | $ | 64,234 | ||||||||
DWA Consumer Cyclicals Momentum Portfolio | 402,883 | 72,285 | 127,393 | 203,205 | ||||||||||||
DWA Consumer Staples Momentum Portfolio | 388,939 | 58,654 | 101,972 | 228,313 | ||||||||||||
DWA Energy Momentum Portfolio | 489,376 | — | 290,036 | 199,340 | ||||||||||||
DWA Financial Momentum Portfolio | 242,360 | 69,854 | 94,203 | 78,303 | ||||||||||||
DWA Healthcare Momentum Portfolio | 319,702 | 38,353 | 88,576 | 192,773 | ||||||||||||
DWA Industrials Momentum Portfolio | 128,809 | 30,573 | 48,372 | 49,864 | ||||||||||||
DWA Technology Momentum Portfolio | 336,365 | 60,072 | 104,492 | 171,801 | ||||||||||||
DWA Utilities Momentum Portfolio | 227,744 | 53,817 | 83,252 | 90,675 |
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 Funds are not charged any fees pursuant to the Distribution Agreement. 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”):
Full Name | Licensor | |
DWA Basic Materials Momentum Portfolio | Dorsey Wright & Associates, LLC | |
DWA Consumer Cyclicals Momentum Portfolio | Dorsey Wright & Associates, LLC | |
DWA Consumer Staples Momentum Portfolio | Dorsey Wright & Associates, LLC | |
DWA Energy Momentum Portfolio | Dorsey Wright & Associates, LLC | |
DWA Financial Momentum Portfolio | Dorsey Wright & Associates, LLC | |
DWA Healthcare Momentum Portfolio | Dorsey Wright & Associates, LLC | |
DWA Industrials Momentum Portfolio | Dorsey Wright & Associates, LLC | |
DWA Technology Momentum Portfolio | Dorsey Wright & Associates, LLC | |
DWA Utilities Momentum Portfolio | Dorsey Wright & Associates, LLC | |
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 by 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 the Funds.
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The Trust has entered into service agreements whereby The Bank of New York Mellon, a wholly-owned subsidiary of The Bank of New York Mellon Corporation, serves as the administrator, custodian, fund accountant and transfer agent for each Fund.
Note 4. Investments in Affiliates
The Adviser is a wholly-owned subsidiary of Invesco Ltd. and therefore, Invesco Ltd. is considered to be affiliated with the Funds. The table below shows DWA Financial Momentum Portfolio’s transactions in, and earnings from, its investment in affiliates for the fiscal year ended April 30, 2016.
DWA Financial Momentum Portfolio
Value April 30, 2015 | Purchases at Cost | Proceeds from Sales | Change in Unrealized Appreciation (Depreciation) | Realized Gain (Loss) | Value April 30, 2016 | Dividend Income | ||||||||||||||||||||||
Invesco Ltd.* | $ | 1,114,653 | $ | 151,012 | $ | (1,067,391 | ) | $ | (137,392 | ) | $ | (60,882 | ) | $ | — | $ | 20,926 |
* | At April 30, 2016, this security was no longer held. |
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 a 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, 2016, all of the securities in each Fund were valued based on Level 1 inputs (see the Schedules 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.
Investments in Securities | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
DWA Healthcare Momentum Portfolio | ||||||||||||||||
Equity Securities | $ | 75,449,983 | $ | — | $ | 14,948 | $ | 75,464,931 | ||||||||
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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, 2016 and 2015:
2016 | 2015 | |||||||
Ordinary Income | Ordinary Income | |||||||
DWA Basic Materials Momentum Portfolio | $ | 869,950 | $ | 881,072 | ||||
DWA Consumer Cyclicals Momentum Portfolio | 507,462 | 352,829 | ||||||
DWA Consumer Staples Momentum Portfolio | 1,309,748 | 932,548 | ||||||
DWA Energy Momentum Portfolio | 2,409,629 | 2,298,949 | ||||||
DWA Financial Momentum Portfolio | 414,019 | 460,625 | ||||||
DWA Industrials Momentum Portfolio | 525,854 | 407,957 | ||||||
DWA Technology Momentum Portfolio | — | 406,069 | ||||||
DWA Utilities Momentum Portfolio | 1,178,184 | 982,578 |
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Tax Components of Net Assets at Fiscal Year-End:
Undistributed Ordinary Income | Temporary Book/Tax Differences | Net Unrealized Appreciation (Depreciation)— Investment Securities | Capital Loss Carryforwards | Late-Year Ordinary/ Post-October Deferrals* | Shares of Beneficial Interest | Total Net Assets | ||||||||||||||||||||||
DWA Basic Materials Momentum Portfolio | $ | 135,562 | $ | (16,663 | ) | $ | 13,913,609 | $ | (30,559,651 | ) | $ | (1,704,171 | ) | $ | 186,728,734 | $ | 168,497,420 | |||||||||||
DWA Consumer Cyclicals Momentum Portfolio | 258,457 | (15,229 | ) | (1,722,133 | ) | (18,056,833 | ) | (22,875,722 | ) | 135,375,855 | 92,964,395 | |||||||||||||||||
DWA Consumer Staples Momentum Portfolio | 666,753 | (16,082 | ) | 8,592,315 | (12,374,655 | ) | (16,912,749 | ) | 317,114,437 | 297,070,019 | ||||||||||||||||||
DWA Energy Momentum Portfolio | 159,900 | (19,161 | ) | 18,353,845 | (91,974,865 | ) | (24,926,596 | ) | 223,693,330 | 125,286,453 | ||||||||||||||||||
DWA Financial Momentum Portfolio | 133,680 | (14,529 | ) | 1,312,756 | (12,264,300 | ) | (1,979,992 | ) | 42,230,372 | 29,417,987 | ||||||||||||||||||
DWA Healthcare Momentum Portfolio** | — | (18,703 | ) | 2,206,231 | (75,777,891 | ) | (27,183,007 | ) | 176,105,134 | 75,331,764 | ||||||||||||||||||
DWA Industrials Momentum Portfolio | 60,696 | (17,068 | ) | 1,980,814 | (63,482,749 | ) | (1,780,609 | ) | 106,115,200 | 42,876,284 | ||||||||||||||||||
DWA Technology Momentum Portfolio** | — | (15,924 | ) | 2,247,571 | (39,768,409 | ) | (26,571,635 | ) | 246,731,649 | 182,623,252 | ||||||||||||||||||
DWA Utilities Momentum Portfolio | 763,759 | (15,621 | ) | 8,981,792 | (14,801,838 | ) | (665,054 | ) | 206,690,078 | 200,953,116 | ||||||||||||||||||
NASDAQ Internet Portfolio** | — | — | (1,114,049 | ) | (9,015,418 | ) | (5,064,944 | ) | 294,346,432 | 279,152,021 |
* | Includes net 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”), that are deemed to arise on the first business day of each Fund’s next taxable year. |
** | The DWA Healthcare Momentum Portfolio, DWA Technology Momentum Portfolio and NASDAQ Internet Portfolio incurred and will elect to defer Late-Year Ordinary Losses of $175,813, $84,779 and $262,542, and Post-October Capital Losses of $27,007,194, $26,486,856 and $4,802,402, respectively. |
Capital loss carryforwards are calculated and reported as of a specific date. Results of transactions and other activity after that date may affect the amount of capital loss carryforwards actually available for the Funds to utilize. Capital losses generated in years beginning after December 22, 2010 can be carried forward for an unlimited period, whereas previous losses expire in eight tax years. 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. Capital loss carryforwards with no expiration date 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 carryforwards in the future may be limited under the Internal Revenue Code and related regulations based on the results of future transactions.
The following table presents available capital loss carryforwards and expiration dates for each Fund as of April 30, 2016:
Post-effective/no expiration | ||||||||||||||||||||||||||||
2017 | 2018 | 2019 | Short-Term | Long-Term | Total* | Expired | ||||||||||||||||||||||
DWA Basic Materials Momentum Portfolio | $ | 3,783,798 | $ | 4,534,904 | $ | 2,521,492 | $ | 18,863,599 | $ | 855,858 | $ | 30,559,651 | $ | 205,528 | ||||||||||||||
DWA Consumer Cyclicals Momentum Portfolio | 1,993,654 | — | 2,042,056 | 14,021,123 | — | 18,056,833 | 1,246,058 | |||||||||||||||||||||
DWA Consumer Staples Momentum Portfolio | 2,156,980 | 3,935,363 | 1,180,566 | 5,101,746 | — | 12,374,655 | 562,037 | |||||||||||||||||||||
DWA Energy Momentum Portfolio | 2,869,667 | 3,914,682 | 1,167,692 | 78,949,662 | 5,073,162 | 91,974,865 | 880,885 | |||||||||||||||||||||
DWA Financial Momentum Portfolio | 1,821,971 | 4,413,894 | 1,979,006 | 4,049,429 | — | 12,264,300 | 614,940 | |||||||||||||||||||||
DWA Healthcare Momentum Portfolio | 17,890,879 | 18,737,951 | 2,739,963 | 36,409,098 | — | 75,777,891 | 2,234,184 | |||||||||||||||||||||
DWA Industrials Momentum Portfolio | 6,525,387 | 21,245,288 | 2,746,746 | 32,845,118 | 120,210 | 63,482,749 | 1,476,057 | |||||||||||||||||||||
DWA Technology Momentum Portfolio | 8,220,697 | 7,658,564 | 3,016,840 | 20,810,078 | 62,230 | 39,768,409 | 2,465,875 | |||||||||||||||||||||
DWA Utilities Momentum Portfolio | 1,366,073 | 5,885,935 | 874,386 | 5,215,594 | 1,459,850 | 14,801,838 | 2,124,736 | |||||||||||||||||||||
NASDAQ Internet Portfolio | — | 3,360 | 74,863 | 4,699,286 | 4,237,909 | 9,015,418 | — |
* | Capital loss carryforwards as of the date listed above are reduced for limitations, if any, to the extent required by the Internal Revenue Code and may be further limited depending upon a variety of factors, including the realization of net unrealized gains or losses as of the date of any reorganization. |
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Note 7. Investment Transactions
For the fiscal year ended April 30, 2016, the cost of securities purchased and proceeds from sales of securities (other than short-term securities, U.S. Treasury obligations, money market funds and in-kind transactions, if any) were as follows:
Purchases | Sales | |||||||
DWA Basic Materials Momentum Portfolio | $ | 69,620,791 | $ | 69,740,262 | ||||
DWA Consumer Cyclicals Momentum Portfolio | 255,897,207 | 255,412,487 | ||||||
DWA Consumer Staples Momentum Portfolio | 276,118,150 | 277,120,874 | ||||||
DWA Energy Momentum Portfolio | 161,418,278 | 162,770,089 | ||||||
DWA Financial Momentum Portfolio | 39,171,018 | 39,710,666 | ||||||
DWA Healthcare Momentum Portfolio | 392,052,142 | 393,195,784 | ||||||
DWA Industrials Momentum Portfolio | 113,568,307 | 113,173,877 | ||||||
DWA Technology Momentum Portfolio | 262,933,680 | 260,710,833 | ||||||
DWA Utilities Momentum Portfolio | 63,938,232 | 62,910,447 | ||||||
NASDAQ Internet Portfolio | 67,518,183 | 68,424,742 |
For the fiscal year ended April 30, 2016, in-kind transactions associated with creations and redemptions were as follows:
Cost of Securities Received | Value of Securities Delivered | |||||||
DWA Basic Materials Momentum Portfolio | $ | 118,067,489 | $ | 33,889,082 | ||||
DWA Consumer Cyclicals Momentum Portfolio | 242,962,077 | 219,342,270 | ||||||
DWA Consumer Staples Momentum Portfolio | 383,991,296 | 188,857,216 | ||||||
DWA Energy Momentum Portfolio | 40,199,452 | 55,217,368 | ||||||
DWA Financial Momentum Portfolio | 6,043,764 | 12,838,420 | ||||||
DWA Healthcare Momentum Portfolio | 168,281,574 | 198,702,927 | ||||||
DWA Industrials Momentum Portfolio | 64,457,006 | 123,943,592 | ||||||
DWA Technology Momentum Portfolio | 286,254,485 | 139,314,733 | ||||||
DWA Utilities Momentum Portfolio | 198,136,172 | 44,276,839 | ||||||
NASDAQ Internet Portfolio | 136,082,068 | 80,562,441 |
Gains (losses) on in-kind transactions are generally not considered taxable gains (losses) for federal income tax purposes.
At April 30, 2016, the aggregate cost and the net unrealized appreciation (depreciation) of investments for tax purposes were as follows:
Gross Unrealized Appreciation | Gross Unrealized (Depreciation) | Net Unrealized Appreciation (Depreciation) | Cost | |||||||||||||
DWA Basic Materials Momentum Portfolio | $ | 14,478,029 | $ | (564,420 | ) | $ | 13,913,609 | $ | 154,647,839 | |||||||
DWA Consumer Cyclicals Momentum Portfolio | 3,083,387 | (4,805,520 | ) | (1,722,133 | ) | 94,805,012 | ||||||||||
DWA Consumer Staples Momentum Portfolio | 15,000,321 | (6,408,006 | ) | 8,592,315 | 288,689,785 | |||||||||||
DWA Energy Momentum Portfolio | 20,788,946 | (2,435,101 | ) | 18,353,845 | 106,957,624 | |||||||||||
DWA Financial Momentum Portfolio | 1,861,103 | (548,347 | ) | 1,312,756 | 28,146,380 | |||||||||||
DWA Healthcare Momentum Portfolio | 4,205,262 | (1,999,031 | ) | 2,206,231 | 73,258,700 | |||||||||||
DWA Industrials Momentum Portfolio | 2,494,636 | (513,822 | ) | 1,980,814 | 40,941,064 | |||||||||||
DWA Technology Momentum Portfolio | 7,904,836 | (5,657,265 | ) | 2,247,571 | 180,600,848 | |||||||||||
DWA Utilities Momentum Portfolio | 10,282,600 | (1,300,808 | ) | 8,981,792 | 192,064,199 | |||||||||||
NASDAQ Internet Portfolio | 31,583,068 | (32,697,117 | ) | (1,114,049 | ) | 294,320,290 |
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Note 8. Reclassification of Permanent Differences
Primarily as a result of differing book/tax treatment of in-kind transactions and expired capital loss carryforwards on April 30, 2016, 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, 2016, the reclassifications were as follows:
Undistributed Net Investment Income (Loss) | Undistributed Net Realized Gain (Loss) | Shares of Beneficial Interest | ||||||||||
DWA Basic Materials Momentum Portfolio | $ | — | $ | (2,009,029 | ) | $ | 2,009,029 | |||||
DWA Consumer Cyclicals Momentum Portfolio | — | (8,708,123 | ) | 8,708,123 | ||||||||
DWA Consumer Staples Momentum Portfolio | — | (21,678,678 | ) | 21,678,678 | ||||||||
DWA Energy Momentum Portfolio | — | (2,218,398 | ) | 2,218,398 | ||||||||
DWA Financial Momentum Portfolio | — | (944,338 | ) | 944,338 | ||||||||
DWA Healthcare Momentum Portfolio | 1,026,914 | 13,351,597 | (14,378,511 | ) | ||||||||
DWA Industrials Momentum Portfolio | — | (7,649,970 | ) | 7,649,970 | ||||||||
DWA Technology Momentum Portfolio | 2,600 | (4,962,196 | ) | 4,959,596 | ||||||||
DWA Utilities Momentum Portfolio | — | (4,456,166 | ) | 4,456,166 | ||||||||
NASDAQ Internet Portfolio | 509,661 | (19,237,723 | ) | 18,728,062 |
Note 9. Trustees’ and Officer’s Fees
Trustees’ and Officer’s Fees include amounts accrued by the Funds to pay remuneration to the Independent Trustees and an Officer of the Trust. The Adviser, as a result of the unitary management fee, pays for such compensation for NASDAQ Internet Portfolio. The Trustee who is an “interested person” of the Trust does 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. Obligations under the Plan represent unsecured claims against the general assets of the Funds.
Note 10. Capital
Shares are created and redeemed by each Fund only in Creation Units of 50,000 Shares. Only Authorized Participants are permitted to purchase or redeem Creation Units from the Funds. Such transactions are principally permitted in exchange for Deposit Securities, with a balancing cash component to equate the transaction to the NAV per Share of a Fund of the Trust on the transaction date. However, for all Funds, cash in an amount equivalent to the value of certain securities may be substituted, generally when the securities are not available in sufficient quantity for delivery, not eligible for trading by the Authorized Participant or as a result of other market circumstances.
To the extent that the Funds permit transactions in exchange for Deposit Securities, each Fund may issue Shares in advance of receipt of Deposit Securities subject to various conditions, including a requirement to maintain on deposit with the Trust cash at least equal to 105% of the market value of the missing Deposit Securities. In accordance with the Trust’s Participant Agreement, Creation Units will be issued to an Authorized Participant, notwithstanding the fact that the corresponding Deposit Securities have not been received in part or in whole, in reliance on the undertaking of the Authorized Participant to deliver the missing Deposit Securities as soon as possible, which undertaking shall be secured by the Authorized Participant’s delivery and maintenance of collateral consisting of cash in the form of U.S. dollars in immediately available funds having a value (marked-to-market daily) at least equal to 105%, which the Adviser may change from time to time, of the value of the missing Deposit Securities.
Transactions in each Fund’s Shares are disclosed in detail in 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.
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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 DWA Basic Materials Momentum Portfolio, PowerShares DWA Consumer Cyclicals Momentum Portfolio, PowerShares DWA Consumer Staples Momentum Portfolio, PowerShares DWA Energy Momentum Portfolio, PowerShares DWA Financial Momentum Portfolio, PowerShares DWA Healthcare Momentum Portfolio, PowerShares DWA Industrials Momentum Portfolio, PowerShares DWA Technology Momentum Portfolio, PowerShares DWA Utilities Momentum 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, 2016, the results of each of their operations for the year then ended, the changes 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, 2016 by correspondence with the custodian and brokers, and the application of alternative auditing procedures where confirmations of security purchases have not been received, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Chicago, IL
June 23, 2016
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As a shareholder of a Fund of the PowerShares Exchange-Traded Fund Trust (excluding PowerShares NASDAQ Internet Portfolio), you incur advisory fees and other Fund expenses. As a shareholder of a Fund of the PowerShares NASDAQ Internet Portfolio, you incur a unitary management fee. In addition to the unitary management fee, a shareholder may pay distribution fees, if any, brokerage expenses, taxes, interest, acquired fund fees and expenses, if any, litigation expenses and other extraordinary 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, 2016.
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, expenses shown in the table do not include the expenses of the underlying funds, which are borne indirectly by a Fund. If transaction costs and indirect expenses were included, your costs would have been higher.
Beginning Account Value November 1, 2015 | Ending Account Value April 30, 2016 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period(1) | |||||||||||||
PowerShares DWA Basic Materials Momentum Portfolio (PYZ) | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 1,083.85 | 0.60 | % | $ | 3.11 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.88 | 0.60 | 3.02 | ||||||||||||
PowerShares DWA Consumer Cyclicals Momentum Portfolio (PEZ) | ||||||||||||||||
Actual | 1,000.00 | 907.74 | 0.60 | 2.85 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.88 | 0.60 | 3.02 | ||||||||||||
PowerShares DWA Consumer Staples Momentum Portfolio (PSL) | ||||||||||||||||
Actual | 1,000.00 | 990.91 | 0.60 | 2.97 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.88 | 0.60 | 3.02 | ||||||||||||
PowerShares DWA Energy Momentum Portfolio (PXI) | ||||||||||||||||
Actual | 1,000.00 | 966.15 | 0.60 | 2.93 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.88 | 0.60 | 3.02 | ||||||||||||
PowerShares DWA Financial Momentum Portfolio (PFI) | ||||||||||||||||
Actual | 1,000.00 | 955.53 | 0.60 | 2.92 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.88 | 0.60 | 3.02 | ||||||||||||
PowerShares DWA Healthcare Momentum Portfolio (PTH) | ||||||||||||||||
Actual | 1,000.00 | 806.09 | 0.60 | 2.69 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.88 | 0.60 | 3.02 |
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Beginning Account Value November 1, 2015 | Ending Account Value April 30, 2016 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period(1) | |||||||||||||
PowerShares DWA Industrials Momentum Portfolio (PRN) | ||||||||||||||||
Actual | $ | 1,000.00 | $ | 998.37 | 0.60 | % | $ | 2.98 | ||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.88 | 0.60 | 3.02 | ||||||||||||
PowerShares DWA Technology Momentum Portfolio (PTF) | ||||||||||||||||
Actual | 1,000.00 | 876.19 | 0.60 | 2.80 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.88 | 0.60 | 3.02 | ||||||||||||
PowerShares DWA Utilities Momentum Portfolio (PUI) | ||||||||||||||||
Actual | 1,000.00 | 1,136.28 | 0.60 | 3.19 | ||||||||||||
Hypothetical (5% return before expenses) | 1,000.00 | 1,021.88 | 0.60 | 3.02 | ||||||||||||
PowerShares NASDAQ Internet Portfolio (PNQI) | ||||||||||||||||
Actual | 1,000.00 | 969.92 | 0.60 | 2.94 | ||||||||||||
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-month period ended April 30, 2016. 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. |
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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, 2016:
Qualified Dividend Income* | Dividends-Received Deduction* | |||||||||
PowerShares DWA Basic Materials Momentum Portfolio | 100 | % | 100 | % | ||||||
PowerShares DWA Consumer Cyclicals Momentum Portfolio | 100 | % | 100 | % | ||||||
PowerShares DWA Consumer Staples Momentum Portfolio | 100 | % | 100 | % | ||||||
PowerShares DWA Energy Momentum Portfolio | 100 | % | 100 | % | ||||||
PowerShares DWA Financial Momentum Portfolio | 81 | % | 80 | % | ||||||
PowerShares DWA Healthcare Momentum Portfolio | 0 | % | 0 | % | ||||||
PowerShares DWA Industrials Momentum Portfolio | 100 | % | 100 | % | ||||||
PowerShares DWA Technology Momentum Portfolio | 0 | % | 0 | % | ||||||
PowerShares DWA Utilities Momentum Portfolio | 100 | % | 100 | % | ||||||
PowerShares NASDAQ Internet Portfolio | 0 | % | 0 | % |
* | The above percentages are based on ordinary income dividends paid to shareholders during the Fund’s fiscal year. |
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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, 2016.
Name, Address and Year of Birth of Independent Trustees | Position(s) Held with Trust | Term of and | Principal Occupation(s) During Past 5 Years | Number of in Fund | Other Directorships Held by Independent Trustees During the Past 5 Years | |||||
Ronn R. Bagge—1958 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Chairman of the Nominating and Governance Committee and Trustee | Chairman of the Nominating and Governance Committee and 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). | 124 | None | |||||
Todd J. Barre—1957 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Trustee | Since 2010 | Assistant Professor of Business, Trinity Christian College (2010-2016); 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. | 124 | None | |||||
Marc M. Kole—1960 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Chairman of the Audit Committee and Trustee | Chairman of the Audit Committee since 2008; and Trustee since 2006 | Senior Director of Finance, By The Hand Club for Kids (2015-Present); formerly: Chief Financial Officer, Hope Network (social services) (2008-2012); Assistant Vice President and Controller, Priority Health (health insurance) (2005-2008); Senior Vice President of Finance, United Healthcare (2004-2005); Chief Accounting Officer, Senior Vice President of Finance, Oxford Health Plans (2000-2004); Audit Partner, Arthur Andersen LLP (1996-2000). | 124 | None | |||||
Yung Bong Lim—1964 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Chairman of the Investment Oversight Committee and Trustee | Chairman of the Investment Oversight Committee since 2014; Trustee since 2013 | Managing Partner, Residential Dynamics Group LLC (2008-Present); formerly, Managing Director, Citadel Investment Group, L.L.C. (1999-2007). | 124 | 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, 2016, the “Fund Family” consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 71 portfolios advised by the Adviser. |
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Trustees and Officers (continued)
Name, Address and Year of Birth of Independent Trustees | Position(s) Held with Trust | Term of and | Principal Occupation(s) During Past 5 Years | Number of in Fund | Other Directorships Held by Independent Trustees During the Past 5 Years | |||||
Philip M. Nussbaum—1961 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Trustee | Since 2003 | Chairman, Performance Trust Capital Partners (2004-Present). | 124 | None | |||||
Gary R. Wicker—1961 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Trustee | Since 2013 | Senior Vice President of Global Finance and Chief Financial Officer at RBC Ministries (publishing company) (2013-Present); formerly, Executive Vice President and Chief Financial Officer, Zondervan Publishing (a division of Harper Collins/NewsCorp) (2007-2012); Senior Vice President and Group Controller (2005-2006), Senior Vice President and Chief Financial Officer (2003-2004), Chief Financial Officer (2001-2003), Vice President, Finance and Controller (1999-2001) and Assistant Controller (1997-1999), divisions of The Thomson Corporation (information services provider). | 124 | None | |||||
Donald H. Wilson—1959 c/o Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Chairman of the Board and Trustee | Chairman since 2012; Trustee since 2006 | Chairman and Chief Executive Officer, Stone Pillar Advisors, Ltd. (2010-Present); formerly, Chairman, President and Chief Executive Officer, Community Financial Shares, Inc. and Community Bank—Wheaton/Glen Ellyn (subsidiary) (2013-2015); 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). | 124 | 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, 2016, the “Fund Family” consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 71 portfolios advised by the Adviser. |
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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 Year of Birth 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 Trustee | Other Directorships Held by Non-Independent Trustees During the Past 5 Years | |||||
Kevin M. Carome—1956 Invesco Ltd. Two Peachtree Pointe, 1555 Peachtree St., N.E., Suite 1800 Atlanta, GA 30309 | Trustee | Since 2010 | Senior Managing Director, Secretary and General Counsel, Invesco Ltd. (2007-Present); Director, Invesco Advisers, Inc. (2009-Present); Director, Invesco Finance PLC, and Invesco Holding Company Limited; Director and Executive Vice President, Invesco Finance, Inc., Invesco Group Services, Inc., Invesco Investments (Bermuda) Ltd., Invesco North American Holdings, Inc., IVZ, Inc. and Invesco Asset Management (Bermuda) Ltd.; Manager, Horizon Flight Works LLC; Director and Secretary, IVZ Bahamas Private Limited; formerly, Director, INVESCO Funds Group, Inc., Senior Vice President, Secretary and General Counsel, Invesco Advisers, 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. | 124 | 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, 2016, the Fund Complex consisted of the Trust’s 53 portfolios and four other exchange-traded fund trusts with 71 portfolios advised by the Adviser. |
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Trustees and Officers (continued)
Name, Address and Year of Birth of Executive Officers | Position(s) Held with Trust | Length of Time Served* | Principal Occupation(s) During Past 5 Years | |||
Daniel E. Draper—1968 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | President and Principal Executive Officer | Since 2015 | President and Principal Executive Officer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2015-Present); Chief Executive Officer (2016-Present) and Managing Director (2013-Present), Invesco PowerShares Capital Management LLC; Senior Vice President, Invesco Distributors, Inc. (2014-Present); formerly, Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-2015) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-2015); Managing Director, Credit Suisse Asset Management (2010-2013) and Lyxor Asset Management/Societe Generale (2007-2010). | |||
Steven M. Hill—1964 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Vice President and Treasurer | Since 2013 | Vice President and Treasurer, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Global ETF Administration, Invesco PowerShares Capital Management LLC (2011-Present); Principal Financial and Accounting Officer – Investment Pools, Invesco PowerShares Capital Management LLC (2015-Present); formerly, Senior Managing Director and Chief Financial Officer, Destra Capital Management LLC and its subsidiaries (2010-2011); Chief Financial Officer, Destra Investment Trust and Destra Investment Trust II (2010-2011); Senior Managing Director, Claymore Securities, Inc. (2003-2010); and Chief Financial Officer, Claymore sponsored mutual funds (2003-2010). | |||
Peter Hubbard—1981 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Vice President | Since 2009 | Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2009-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Vice President and Director of Portfolio Management, Invesco PowerShares Capital Management LLC (2010-Present); formerly, Vice President of Portfolio Management, Invesco PowerShares Capital Management LLC (2008-2010); 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). | |||
Christopher Joe—1969 Invesco PowerShares Capital Management LLC 11 Greenway Plaza, Suite 1000 Houston, TX 77046-1173 | Chief Compliance Officer | Since 2012 | Chief Compliance Officer of Invesco PowerShares Capital Management LLC (2015-Present); Chief Compliance Officer of PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2012-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); formerly, Chief Compliance Officer, Invesco Investment Advisers, LLC (registered investment adviser) (2010–2013), U.S. Compliance Director, Invesco, Ltd. (2006-2014) and Deputy Chief Compliance Officer of Invesco Advisers, Inc. (2014-2015). |
* | 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. |
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Trustees and Officers (continued)
Name, Address and Year of Birth of Executive Officers | Position(s) Held with Trust | Length of Time Served* | Principal Occupation(s) During Past 5 Years | |||
Sheri Morris—1964 Invesco Management Group, Inc. 11 Greenway Plaza, Suite 1000 Houston, TX 77046 | Vice President | Since 2012 | President, Principal Executive Officer and Treasurer, The Invesco Funds (2016-Present); Vice President, Invesco Advisers, Inc. (formerly known as Invesco Institutional (N.A.), Inc.) (registered investment adviser) (2009-Present) and Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2012-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); formerly, Vice President, Treasurer and Principal Financial Officer, The Invesco Funds (2008-2016); 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 (2011-2013); Vice President, Invesco Aim 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—1974 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Secretary | Since 2011 | Secretary, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2011-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Legal (2010-Present) and Secretary (2015-Present), 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). | |||
Rudolf E. Reitmann—1971 Invesco PowerShares Capital Management LLC 3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | Vice President | Since 2013 | Vice President, PowerShares Exchange-Traded Fund Trust, PowerShares Exchange-Traded Fund Trust II, PowerShares India Exchange-Traded Fund Trust, PowerShares Actively Managed Exchange-Traded Fund Trust (2013-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Head of Global Exchange Traded Funds Services, Invesco PowerShares Capital Management LLC (2013-Present). | |||
David Warren—1957 Invesco Canada Ltd. 5140 Yonge Street, Suite 800 Toronto, Ontario M2N 6X7 | Vice President | Since 2009 | Vice President, 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 (2009-Present) and PowerShares Actively Managed Exchange-Traded Commodity Fund Trust (2014-Present); Managing Director—Chief Administrative Officer, Americas, Invesco PowerShares Capital Management LLC; Senior Vice President, Invesco Advisers, Inc. (2009-Present); Director, Invesco Inc. (2009-Present); Senior Vice President, Invesco Management Group, Inc. (2007-Present); Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (formerly, Invesco Trimark Ltd.); Chief Administrative Officer, North American Retail, Invesco Ltd. (2007-Present); Director, Invesco Corporate Class Inc. (2014-Present); Director, Invesco Global Direct Real Estate Feeder GP Ltd. (2015-Present); Director, Invesco Canada Holdings Inc. (2002-Present); Director, Invesco Financial Services Ltd. / Services Financiers Invesco Ltée and Trimark Investments Ltd./Placements Trimark Ltée (2014-Present); Director, Invesco IP Holdings (Canada) Ltd. (2016-Present); Director, Invesco Global Direct Real Estate GP Ltd. (2015-Present); formerly, Executive Vice President and Chief Financial Officer, Invesco Inc. (2009-2015); Director, Executive Vice President and Chief Financial Officer, Invesco Canada Ltd. (formerly, Invesco Trimark Ltd.) (2000-2011). |
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. |
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Board Considerations Regarding Continuation of Investment Advisory Agreement
At a meeting held on April 14, 2016, 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 51 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 Momentum Portfolio
PowerShares DWA Basic Materials Momentum Portfolio
PowerShares DWA Consumer Cyclicals Momentum Portfolio
PowerShares DWA Consumer Staples Momentum Portfolio
PowerShares DWA Energy Momentum Portfolio
PowerShares DWA Financial Momentum Portfolio
PowerShares DWA Healthcare Momentum Portfolio
PowerShares DWA Industrials Momentum Portfolio
PowerShares DWA NASDAQ Momentum Portfolio
PowerShares DWA Technology Momentum Portfolio
PowerShares DWA Utilities Momentum Portfolio
PowerShares Dynamic Biotechnology & Genome Portfolio
PowerShares Dynamic Building & Construction Portfolio
PowerShares Dynamic Energy Exploration & Production Portfolio
PowerShares Dynamic Food & Beverage Portfolio
PowerShares Dynamic Large Cap Growth Portfolio
PowerShares Dynamic Large Cap Value Portfolio
PowerShares Dynamic Leisure and Entertainment Portfolio
PowerShares Dynamic Market Portfolio
PowerShares Dynamic Media Portfolio
PowerShares Dynamic Networking Portfolio
PowerShares Dynamic Oil & Gas Services Portfolio
PowerShares Dynamic Pharmaceuticals Portfolio
PowerShares Dynamic Retail Portfolio
PowerShares Dynamic Semiconductors Portfolio
PowerShares Dynamic Software Portfolio
PowerShares Financial Preferred Portfolio
PowerShares FTSE RAFI US 1000 Portfolio
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio
PowerShares Global Listed Private Equity Portfolio
PowerShares Golden Dragon China Portfolio
PowerShares High Yield Equity Dividend AchieversTM Portfolio
PowerShares International Dividend AchieversTM Portfolio
PowerShares Russell Top 200 Equal Weight Portfolio
PowerShares Russell Top 200 Pure Growth Portfolio
PowerShares Russell Top 200 Pure Value Portfolio
PowerShares Russell Midcap Equal Weight Portfolio
PowerShares Russell Midcap Pure Growth Portfolio
PowerShares Russell Midcap Pure Value Portfolio
PowerShares Russell 2000 Equal Weight Portfolio
PowerShares Russell 2000 Pure Growth Portfolio
PowerShares Russell 2000 Pure Value Portfolio
PowerShares S&P 500® 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 for each Fund, (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 to and amounts paid by other registered investment companies and (vii) any benefits realized by the Adviser from its relationship with each Fund.
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 staffing, including operational support 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 and/or oversight of execution of portfolio transactions on behalf of the Funds. The Trustees also reviewed information on the performance of the Funds and their underlying indexes for the one-year, three-year, five-year, ten-year and since-inception periods ended December 31, 2015, as applicable, including reports for each of those periods 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 certain Funds and their underlying indexes. In reviewing the tracking error reports, the Trustees considered information provided by Ibbotson Associates, a consultant to the Independent Trustees, with respect to general expected tracking error ranges and various explanations for any tracking error. The Trustees noted that for each applicable period the correlation and tracking error for
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Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)
each Fund was within the targeted range set forth in the Trust’s registration statement and 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, effort and resources 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 advisory fee and net expense ratio, as compared to information compiled by the Adviser from Lipper Inc. databases on the advisory fees and net expense ratios of comparable exchange-traded funds (“ETFs”), open-end (non-ETF) index funds and open-end (non-ETF) 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 Russell Top 200 Equal Weight Portfolio, PowerShares Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Equal Weight Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Equal Weight Portfolio, PowerShares Russell 2000 Pure Growth Portfolio, PowerShares Russell 2000 Pure Value Portfolio and PowerShares S&P 500® Quality 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; |
● | 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 Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Pure Growth, Portfolio, PowerShares Russell 2000 Pure Value Portfolio and PowerShares S&P 500® Quality Portfolio; and |
● | 0.25% of the Fund’s average daily net assets for each of PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight Portfolio (The net advisory fees, after giving effect to the Expense Caps below, were 0.01%, -0.05% and -0.39% and, respectively, for PowerShares Russell Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight Portfolio.). |
The Trustees also noted that the Adviser has agreed to waive a portion of its advisory fee and/or pay expenses (an “Expense Cap”) to the extent necessary to prevent the annual operating expenses of each Fund from exceeding the percentage of that Fund’s average daily net assets, at least until August 31, 2017, 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 DWA NASDAQ Momentum 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™ Portfolio, PowerShares High Yield Equity Dividend Achievers™ Portfolio and PowerShares International Dividend Achievers™ 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 Russell Top 200 Pure Growth Portfolio, PowerShares Russell Top 200 Pure Value Portfolio, PowerShares Russell Midcap Pure Growth Portfolio, PowerShares Russell Midcap Pure Value Portfolio, PowerShares Russell 2000 Pure Growth Portfolio and PowerShares Russell 2000 Pure Value Portfolio; |
● | 0.29%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for PowerShares S&P 500® Quality Portfolio; |
● | 0.25%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses for PowerShares Top 200 Equal Weight Portfolio, PowerShares Russell Midcap Equal Weight Portfolio and PowerShares Russell 2000 Equal Weight Portfolio; |
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Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)
● | 0.60%, excluding interest expenses, offering costs, brokerage commissions and other trading expenses, taxes, acquired fund fees and expenses and extraordinary expenses, for PowerShares DWA Basic Materials Momentum Portfolio, PowerShares DWA Consumer Cyclicals Momentum Portfolio, PowerShares DWA Consumer Staples Momentum Portfolio, PowerShares DWA Energy Momentum Portfolio, PowerShares DWA Financial Momentum Portfolio, PowerShares DWA Healthcare Momentum Portfolio, PowerShares DWA Industrials Momentum Portfolio, PowerShares DWA Technology Momentum Portfolio and PowerShares DWA Utilities Momentum Portfolio; 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 serve as the investment adviser to any clients, other than other ETFs also overseen by the Trustees, with comparable investment strategies as the Funds, but that the Adviser provides sub-advisory services to clients with comparable investment strategies as certain of the Funds. The Trustees further noted the Adviser’s explanation with respect to the sub-advisory fees it receives for such services in comparison to the advisory fees charged to the Funds. The Trustees noted that the advisory fees for certain Funds were equal to or lower than the median advisory fees of their ETF and open-end index peer funds as illustrated in the table below. The Trustees also noted that the advisory fees for all of the Funds were lower than the median advisory fees of their open-end actively-managed peer funds.
PowerShares Fund | Equal to/Lower than ETF Median | Equal to/Lower than Open-End Index Fund Median* | Equal to/Lower than Open-End Active Fund Median | |||
PowerShares Aerospace & Defense Portfolio | X | |||||
PowerShares Buyback Achievers Portfolio | X | |||||
PowerShares Cleantech Portfolio | X | |||||
PowerShares Dividend Achievers Portfolio | X | X | ||||
PowerShares DWA Basic Materials Momentum Portfolio | X | |||||
PowerShares DWA Consumer Cyclicals Momentum Portfolio | X | |||||
PowerShares DWA Consumer Staples Momentum Portfolio | X | |||||
PowerShares DWA Energy Momentum Portfolio | X | |||||
PowerShares DWA Financial Momentum Portfolio | X | |||||
PowerShares DWA Healthcare Momentum Portfolio | X | |||||
PowerShares DWA Industrials Momentum Portfolio | X | |||||
PowerShares DWA Momentum Portfolio | X | |||||
PowerShares DWA NASDAQ Momentum Portfolio | X | |||||
PowerShares DWA Technology Momentum Portfolio | X | |||||
PowerShares DWA Utilities Momentum Portfolio | X | |||||
PowerShares Dynamic Biotechnology & Genome Portfolio | X | |||||
PowerShares Dynamic Building & Construction Portfolio | X | |||||
PowerShares Dynamic Energy Exploration & Production Portfolio | X | |||||
PowerShares Dynamic Food & Beverage Portfolio | X | |||||
PowerShares Dynamic Large Cap Growth Portfolio | X | |||||
PowerShares Dynamic Large Cap Value Portfolio | X | |||||
PowerShares Dynamic Leisure and Entertainment Portfolio | X | |||||
PowerShares Dynamic Market Portfolio | X | |||||
PowerShares Dynamic Media Portfolio | X | |||||
PowerShares Dynamic Networking Portfolio | X | |||||
PowerShares Dynamic Oil & Gas Services Portfolio | X | |||||
PowerShares Dynamic Pharmaceuticals Portfolio | X | |||||
PowerShares Dynamic Retail Portfolio | X |
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Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)
PowerShares Fund | Equal to/Lower than ETF Median | Equal to/Lower than Open-End Index Fund Median* | Equal to/Lower than Open-End Active Fund Median | |||
PowerShares Dynamic Semiconductors Portfolio | X | |||||
PowerShares Dynamic Software Portfolio | X | |||||
PowerShares Financial Preferred Portfolio | N/A | X | ||||
PowerShares FTSE RAFI US 1000 Portfolio | X | |||||
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio | X | X | ||||
PowerShares Russell Top 200 Equal Weight Portfolio | X | X | ||||
PowerShares Russell Top 200 Pure Growth Portfolio | X | |||||
PowerShares Russell Top 200 Pure Value Portfolio | X | |||||
PowerShares Russell Midcap Equal Weight Portfolio | X | |||||
PowerShares Russell Midcap Pure Growth Portfolio | X | X | X | |||
PowerShares Russell Midcap Pure Value Portfolio | X | X | ||||
PowerShares Russell 2000 Equal Weight Portfolio | X | X | ||||
PowerShares Russell 2000 Pure Growth Portfolio | X | X | ||||
PowerShares Russell 2000 Pure Value Portfolio | X | |||||
PowerShares Global Listed Private Equity Portfolio | N/A | X | ||||
PowerShares Golden Dragon China Portfolio | X | N/A | X | |||
PowerShares High Yield Equity Dividend Achievers Portfolio | X | X | ||||
PowerShares International Dividend Achievers Portfolio | X | X | X | |||
PowerShares S&P 500 Quality Portfolio | X | |||||
PowerShares Water Resources Portfolio | X | |||||
PowerShares WilderHill Clean Energy Portfolio | X | |||||
PowerShares WilderHill Progressive Energy Portfolio | X | |||||
PowerShares Zacks Micro Cap Portfolio | X |
* | The information provided by the Adviser indicated that certain Funds did not have open-end index fund peers. Those Funds have been designated with an “N/A” for not available. |
The Trustees determined that the advisory fees were reasonable, noting the nature of the indexes, the distinguishing factors of the Funds, and the administrative, operational and management oversight costs for the Adviser. The Trustees noted that the net expense ratios for certain Funds were equal to or lower than the median net expense ratios of their ETF and open-end index peer funds as illustrated in the table below. The Trustees also noted that the net expense ratios for all of the Funds were lower than the median net expense ratios of their open-end actively-managed peer funds.
PowerShares Fund | Equal to/Lower than ETF Median | Equal to/Lower than Open-End Index Fund Median | Equal to/Lower than Open-End Active Fund Median | |||
PowerShares Aerospace & Defense Portfolio | X | |||||
PowerShares Buyback Achievers Portfolio | X | |||||
PowerShares Cleantech Portfolio | X | |||||
PowerShares Dividend Achievers Portfolio | X | X | ||||
PowerShares DWA Basic Materials Momentum Portfolio | X | |||||
PowerShares DWA Consumer Cyclicals Momentum Portfolio | X | |||||
PowerShares DWA Consumer Staples Momentum Portfolio | X | |||||
PowerShares DWA Energy Momentum Portfolio | X | |||||
PowerShares DWA Financial Momentum Portfolio | X |
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Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)
PowerShares Fund | Equal to/Lower than ETF Median | Equal to/Lower than Open-End Index Fund Median | Equal to/Lower than Open-End Active Fund Median | |||
PowerShares DWA Healthcare Momentum Portfolio | X | |||||
PowerShares DWA Industrials Momentum Portfolio | X | |||||
PowerShares DWA Momentum Portfolio | X | X | ||||
PowerShares DWA NASDAQ Momentum Portfolio | X | X | ||||
PowerShares DWA Technology Momentum Portfolio | X | |||||
PowerShares DWA Utilities Momentum Portfolio | X | |||||
PowerShares Dynamic Biotechnology & Genome Portfolio | X | |||||
PowerShares Dynamic Building & Construction Portfolio | X | |||||
PowerShares Dynamic Energy Exploration & Production Portfolio | X | |||||
PowerShares Dynamic Food & Beverage Portfolio | X | |||||
PowerShares Dynamic Large Cap Growth Portfolio | X | |||||
PowerShares Dynamic Large Cap Value Portfolio | X | |||||
PowerShares Dynamic Leisure and Entertainment Portfolio | X | |||||
PowerShares Dynamic Market Portfolio | X | |||||
PowerShares Dynamic Media Portfolio | X | |||||
PowerShares Dynamic Networking Portfolio | X | |||||
PowerShares Dynamic Oil & Gas Services Portfolio | X | |||||
PowerShares Dynamic Pharmaceuticals Portfolio | X | |||||
PowerShares Dynamic Retail Portfolio | X | |||||
PowerShares Dynamic Semiconductors Portfolio | X | |||||
PowerShares Dynamic Software Portfolio | X | |||||
PowerShares Financial Preferred Portfolio | N/A | X | ||||
PowerShares FTSE RAFI US 1000 Portfolio | X | X | X | |||
PowerShares FTSE RAFI US 1500 Small-Mid Portfolio | X | X | X | |||
PowerShares Russell Top 200 Equal Weight Portfolio | X | X | ||||
PowerShares Russell Top 200 Pure Growth Portfolio | X | X | ||||
PowerShares Russell Top 200 Pure Value Portfolio | X | |||||
PowerShares Russell Midcap Equal Weight Portfolio | X | X | ||||
PowerShares Russell Midcap Pure Growth Portfolio | X | X | X | |||
PowerShares Russell Midcap Pure Value Portfolio | X | X | ||||
PowerShares Russell 2000 Equal Weight Portfolio | X | X | X | |||
PowerShares Russell 2000 Pure Growth Portfolio | X | X | ||||
PowerShares Russell 2000 Pure Value Portfolio | X | X | ||||
PowerShares Global Listed Private Equity Portfolio | N/A | X | ||||
PowerShares Golden Dragon China Portfolio | X | N/A | X | |||
PowerShares High Yield Equity Dividend Achievers Portfolio | X | X | ||||
PowerShares International Dividend Achievers Portfolio | X | X | X | |||
PowerShares S&P 500 Quality Portfolio | X | X | X | |||
PowerShares Water Resources Portfolio | X | |||||
PowerShares WilderHill Clean Energy Portfolio | X | |||||
PowerShares WilderHill Progressive Energy Portfolio | X | |||||
PowerShares Zacks Micro Cap Portfolio | X |
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Board Considerations Regarding Continuation of Investment Advisory Agreement (continued)
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 overall profitability as well as the estimated profitability to the Adviser from its relationship to each Fund. The Trustees concluded that the overall and estimated profitability to the Adviser 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 Cap agreed to by the Adviser. 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 DWA NASDAQ Momentum 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.
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.
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Board Considerations Regarding Continuation of Investment Advisory Agreement
At a meeting held on April 14, 2016, 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 together, 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 for each Fund, (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 to and amounts paid by other registered investment companies and (vii) any benefits realized by the Adviser from its relationship with each Fund.
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 staffing, including operational support 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 their underlying indexes for the one-year, three-year, five-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, 2015, including reports for each of those periods on the correlation and tracking error between each Fund’s performance and the performance of its underlying index. In reviewing the tracking error report, the Trustees considered information provided by Ibbotson Associates, a consultant to the Independent Trustees, with respect to general expected tracking error ranges and various explanations for any tracking error. 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, effort and resources 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 net expense ratio and unitary advisory fee, as compared to information compiled by the Adviser from Lipper Inc. databases on the net expense ratios of comparable exchange-traded funds (“ETFs”), open-end (non-ETF) index funds and open-end (non-ETF) 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 Fund, except that each Fund pays its brokerage expenses, taxes, interest, litigation expenses and other extraordinary expenses.
The Trustees noted that the Adviser represented that it does not serve as an investment adviser to any clients, other than other ETFs also overseen by the Trustees, with comparable investment strategies as the Funds. The Trustees noted that PowerShares NASDAQ Internet Portfolio’s net expense ratio was higher than the median net expense ratios of its ETF peer funds and open-end index peer funds, but was lower than the median net expense ratio of its open-end actively-managed peer funds. The Trustees noted that PowerShares S&P 500 BuyWrite Portfolio’s net expense ratio was lower than the median net expense ratios of its ETF peer funds and open-end actively-managed peer funds, but was higher than the median net expense ratio of its open-end index peer funds. The Trustees noted that each Fund’s advisory fee was reasonable because of the nature of the indexes, the distinguishing factors of the Funds and the 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 overall profitability as well as the estimated profitability to the Adviser from its relationship to each Fund. The Trustees concluded that the overall and estimated profitability to the Adviser was not unreasonable.
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Board Considerations Regarding 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 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 a level of 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.
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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 each Fund 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.
Frequency Distribution of Discounts and Premiums
A table showing the number of days the market price of each Fund’s shares was greater than the Fund’s net asset value, and the number of days it was less than the Fund’s net asset value (i.e., premium or discount) for the most recently completed calendar year, and the calendar quarters since that year end (or the life of the Fund, if shorter) may be found at the Fund’s website at www.invescopowershares.com.
©2016 Invesco PowerShares Capital Management LLC | P-PS-AR-3 | |||||
3500 Lacey Road, Suite 700 Downers Grove, IL 60515 | ||||||
invescopowershares.com 800.983.0903 | @PowerShares |
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, 2016.
Item 3. Audit Committee Financial Expert.
The Registrant’s Board of Trustees (the “Board”) has determined that the Registrant has three “audit committee financial experts” serving on its audit committee: Mr. Marc M. Kole, Mr. Gary R. Wicker 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, as amended) and he does not accept any consulting, advisory, or other compensatory fee from the Registrant (except in his 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 person has any greater duties, obligations, or liability than those imposed on a 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.
(a) to (d)
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 year end 2016 | (e)(2) Percentage of | Fees Billed by PwC for Services Rendered to the Registrant for fiscal year end 2015 | (e)(2) Percentage of for fiscal year end | |||||||||||||||||
Audit Fees | $ 755,425 | N/A | $ 702,453 | N/A | ||||||||||||||||
Audit-Related Fees | $ 0 | 0% | $ 0 | 0% | ||||||||||||||||
Tax Fees(2) | $ 420,560 | 0% | $ 400,749 | 0% | ||||||||||||||||
All Other Fees | $ 0 | 0% | $ 0 | 0% | ||||||||||||||||
Total Fees | $ 1,175,985 | 0% | $ 1,103,202 | 0% |
(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, 2016 include fees billed for reviewing tax returns, 2015 excise tax returns and excise tax distributions calculations . Tax fees for the fiscal year ended April 30, 2015 included fees billed for reviewing tax returns, 2014 excise tax returns and excise tax distribution calculations.
Fees Billed by PwC Related to PowerShares and PowerShares Affiliates
PwC billed PowerShares Capital Management LLC (“PowerShares”), the Registrant’s adviser, and any entity controlling, controlled by or under common control with PowerShares that provides ongoing services to the Registrant (“ Affiliates”) aggregate fees for pre-approved non-audit services rendered to PowerShares and Affiliates for the last two fiscal years as follows:
Fees Billed for Non- Audit Services Rendered to PowerShares and year end 2016 That Were Required to be Pre-Approved by the Registrant’s Audit Committee | (e)(2) Percentage of Fees Billed Applicable to Non-Audit Services Provided for fiscal year end 2016 Pursuant to Waiver of Pre- Approval Requirement(1) | Fees Billed for Non- Audit Services Rendered to PowerShares and Affiliates for fiscal year end 2015 That Were Required to be Pre-Approved by the Registrant’s Audit Committee | (e)(2) Percentage of Fees Billed Applicable to Non-Audit Services Provided for fiscal year end 2015 Pursuant to Waiver of Pre- Approval Requirement(1) | |||||
Audit-Related Fees | $ 634,963 | 0% | $574,000 | 0% | ||||
Tax Fees | $ 0 | 0% | $ 0 | 0% | ||||
All Other Fees | $3,750,000 | 0% | $ 0 | 0% | ||||
Total Fees(2) | $4,384,963 | 0% | $574,000 | 0% |
(1) | With respect to 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, PowerShares and PowerShares Affiliates to PwC during a fiscal year; and (iii) such services are promptly brought to the attention of the Registrant’s Audit Committee and approved by the Registrant’s Audit Committee prior to the completion of the audit. |
(2) | Audit-Related fees for the year end 2016 include fees billed related to reviewing controls at a service organization. Audit-Related fees for the year end 2015 include fees billed related to reviewing controls at a service organization. |
All other fees for the year end 2016 include fees billed related to reviewing operating effectiveness of strategic projects.
(e) (1) 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”)
Adopted June 26, 2009, amended March 12, 2015
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. 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. |
(f) Not applicable.
(g) PwC billed the Registrant aggregate fees of $420,560 for the fiscal year ended April 30, 2016 and $400,749 for the fiscal year ended April 30, 2015 for non-audit services rendered to the Registrant.
Including the fees for services not required to be pre-approved by the registrant’s audit committee, PwC billed PowerShares and Affiliates aggregate non-audit fees of $8,160,000 for the fiscal year ended 2016, and $4,660,000 for the fiscal year ended 2015, for non-audit services rendered to PowerShares and Affiliates.
(h) The above information shows the amount of fees that PwC billed during the Registrant’s last two fiscal years for non-audit services. The Audit Committee pre-approved all non-audit services that PwC provided to PowerShares and Affiliates that related directly to the Registrant’s operations or financial reporting. The Audit Committee also received information from PwC about any non-audit services that PwC rendered during the Registrant’s last fiscal year to PowerShares and Affiliates that were not required to be preapproved by the Audit Committee. The Audit Committee considered this information in evaluating PwC’s independence.
In addition, PwC, the Independent Accountant to the Registrant, has advised the Audit Committee of the Board of Trustees of the Registrant (the “Audit Committee”) that it identified an issue related to its independence under
Rule 2-01(c)(1)(ii)(A) of Regulation S-X (referred to as the “Loan Rule”). The Loan Rule prohibits accounting firms, such as PwC, from being deemed independent if they have certain financial relationships with their audit clients or certain affiliates of those clients.
Specifically, the Loan Rule provides, in relevant part, that an accounting firm is not independent if it receives a loan from an audit client or it receives a loan from a lender that is a “record or beneficial owner of more than ten percent of the audit client’s equity securities.” Pursuant to the SEC’s interpretation of the Loan Rule, some of PwC’s relationships with lenders who also own shares of one or more funds within the Invesco investment company complex may implicate the Loan Rule.
However, after evaluating the facts and circumstances related to its lending relationships, PwC informed the Audit Committee that
(1) PwC’s ability to exercise objective and impartial judgment with respect to its audits of the Registrant’s financial statements was not, and will not be, impaired; (2) a reasonable investor with knowledge of all relevant facts and circumstances would reach the same conclusion; and (3) PwC’s independence was not impaired and that it remained independent in conducting its audit of the Registrant’s financial statements. PwC informed the Audit Committee that its conclusion was based on a number of factors, including, among others, PwC’s belief that the lenders have no influence over the investment adviser to the Registrant, or the Registrant, and that the individuals at PwC who arranged the lending relationships have no oversight of, or ability to influence, the individuals at PwC who conducted the audit of the Registrant’s financial statements.
On June 20, 2016, the Staff of the Securities and Exchange Commission (the “SEC”) issued a “no-action” letter confirming that it would not recommend that the SEC commence enforcement action against a fund that relied on audit services performed by an audit firm that was not in compliance with the Loan Rule in certain specified circumstances. The circumstances described in the no-action letter were substantially similar to the circumstances that called into question PwC’s independence under the Loan Rule with respect to the Registrant. PwC has confirmed that it meets the conditions of the no-action relief. The Adviser and the Registrant believe that the Registrant can rely on the relief granted in the no-action letter and continue to issue financial statements that are audited by PwC.
If, in the future, the independence of PwC is called into question under the Loan Rule by circumstances that are not addressed in the no-action letter, the Registrant will need to take other actions for the Registrant’s filings containing financial statements to be compliant with applicable securities laws.
Item 5. Audit Committee of Listed Registrants.
(a) | 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 solely of independent trustees. The Audit Committee members are: Marc M. Kole, Gary R. Wicker and Donald H. Wilson. |
(b) | Not applicable. |
Item 6. Schedule of Investments.
(a) | The Schedules of Investments are included as a part of the report to shareholders filed under Item 1 of this Form N-CSR. |
(b) | Not applicable. |
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 material 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 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 is attached as Exhibit 99.CODEETH. | |
(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/ Daniel E. Draper | ||
Name: | Daniel E. Draper | |
Title: | President | |
Date: | July 8, 2016 |
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/ Daniel E. Draper | ||
Name: | Daniel E. Draper | |
Title: | President | |
Date: | July 8, 2016 |
By: /s/ Steven Hill | ||
Name: | Steven Hill | |
Title: | Treasurer | |
Date: | July 8, 2016 |